Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2022
August 2022
1
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 356,600,994.80 302,472,828.60
Settlement provision
Outgoing call loan
Transactional financial assets 609,244,744.72 586,540,735.16
Derivative financial assets
Note receivable 37,121,033.18 149,942,880.28
Account receivable 703,849,983.33 479,998,708.57
Financing of receivables 51,434,865.61 21,474,101.07
Prepayments 70,367,096.83 15,406,619.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 7,235,875.22 140,185,750.40
Including：Interest receivable 85,062.56
Dividend receivable
Repurchasing of financial assets
Inventories 781,404,848.10 667,461,447.03
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 95,692,488.61 29,503,352.42
Total of current assets 2,712,951,930.40 2,392,986,423.06
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 134,756,614.83 133,022,325.77
Other equity instruments investment 186,033,829.72 186,033,829.72
Other non-current financial assets 28,500,000.00 30,650,943.40
Real estate investment 102,672,477.07 106,217,779.76
Fixed assets 2,375,066,361.03 2,424,741,252.86
Construction in progress 23,222,687.28 71,482,031.08
2
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Production physical assets
Oil & gas assets
Use right assets 16,493,135.66 9,221,189.37
Intangible assets 46,573,386.32 48,635,160.00
Development expenses
Goodwill
Long-germ expenses to be amortized 4,713,174.78 5,387,295.94
Deferred income tax asset 3,664,968.67 3,708,596.78
Other non-current asset 55,960,771.27 84,560,280.09
Total of non-current assets 2,977,657,406.63 3,103,660,684.77
Total of assets 5,690,609,337.03 5,496,647,107.83
Current liabilities
Short-term loans 22,061,861.12 37,575,113.83
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 46,425,031.27 16,682,324.12
Account payable 408,582,168.10 283,643,842.23
Advance receipts 17,006,276.84 1,805,311.57
Contract liabilities 122,759.15 68,955.21
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 54,087,482.76 59,719,860.24
Tax payable 2,759,752.29 9,200,627.09
Other account payable 139,364,842.98 201,317,421.35
Including：Interest payable 0.00
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 9,045,873.71 5,175,393.52
Other current liability 40,146,023.59 27,523,903.58
Total of current liability 739,602,071.81 642,712,752.74
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 728,782,222.63 683,016,243.25
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 8,424,816.86 4,243,855.71
Long-term payable
Long-term remuneration payable to staff
Expected liabilities 29,710,962.81 30,741,055.00
Deferred income 113,665,605.84 110,461,293.15
Deferred income tax liability 61,740,035.56 61,642,660.91
Other non-current liabilities
Total non-current liabilities 942,323,643.70 890,105,108.02
Total of liability 1,681,925,715.51 1,532,817,860.76
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instruments
Including：preferred stock
Sustainable debt
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Capital reserves 1,961,599,824.63 1,961,599,824.63
Less：Shares in stock
Other comprehensive income 119,757,875.07 119,682,119.05
Special reserve
Surplus reserves 98,245,845.47 98,245,845.47
Common risk provision
Retained profit 147,853,684.39 130,746,251.74
Total of owner’s equity belong to the
2,833,979,078.56 2,816,795,889.89
parent company
Minority shareholders’ equity 1,174,704,542.96 1,147,033,357.18
Total of owners’ equity 4,008,683,621.52 3,963,829,247.07
Total of liabilities and owners’ equity 5,690,609,337.03 5,496,647,107.83
Legal Representative:Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Zhu Jingjing
2.Parent Company Balance Sheet
In RMB
Items June 30,2022 January 1,2022
Current asset：
Monetary fund 97,107,787.70 130,270,313.58
Transactional financial assets 609,244,744.72 586,540,735.16
Derivative financial assets
Note receivable
Account receivable 10,912,315.67 7,935,911.24
Financing of receivables
Prepayments 726,145.30
Other account receivable 12,952,469.33 14,383,631.68
Including：Interest receivable
Dividend receivable
Inventories 37,293.80 39,131.60
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 730,980,756.52 739,169,723.26
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2,090,804,820.92 2,089,070,531.86
Other equity instruments investment 169,974,388.84 169,974,388.84
Other non-current financial assets
Real estate investment 95,061,667.85 98,174,132.57
Fixed assets 19,259,962.92 20,255,108.56
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 372,046.54 454,036.00
Development expenses
Goodwill
4
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Long-germ expenses to be amortized
Deferred income tax asset 3,632,513.56 3,672,545.57
Other non-current asset 55,760,086.27 55,790,497.23
Total of non-current assets 2,434,865,486.90 2,437,391,240.63
Total of assets 3,165,846,243.42 3,176,560,963.89
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 12,040,217.78 639,024.58
Contract liabilities
Employees’ wage payable 14,822,675.01 16,712,946.96
Tax payable 2,544,728.33 1,943,470.48
Other account payable 115,465,471.73 116,648,650.39
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 145,284,836.42 136,355,835.98
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 350,000.00 400,000.00
Deferred income tax liability 58,100,175.34 58,002,800.69
Other non-current liabilities
Total non-current liabilities 58,450,175.34 58,402,800.69
Total of liability 203,735,011.76 194,758,636.67
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,577,392,975.96 1,577,392,975.96
Less：Shares in stock
Other comprehensive income 108,838,294.41 108,762,538.39
Special reserve
Surplus reserves 98,245,845.47 98,245,845.47
Retained profit 671,112,266.82 690,879,118.40
Total of owners’ equity 2,962,111,231.66 2,981,802,327.22
Total of liabilities and owners’ equity 3,165,846,243.42 3,176,560,963.89
3.Consolidated Income statement
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 1,445,137,309.09 1,101,536,407.38
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Incl：Business income 1,445,137,309.09 1,101,536,407.38
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,353,000,511.71 963,183,000.35
Incl：Business cost 1,242,988,094.06 863,125,460.07
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4,171,362.18 4,281,044.79
Sales expense 18,355,747.39 20,493,774.82
Administrative expense 61,448,188.86 55,327,660.76
R & D costs 34,870,992.66 29,170,093.39
Financial expenses -8,833,873.44 -9,215,033.48
Including：Interest expense 15,882,534.27 379,800.97
Interest income 773,863.34 -840,978.40
Add: Other income 10,780,654.48 8,764,569.01
Investment gain（“-”for loss） 11,043,172.52 10,152,132.35
Incl: investment gains from affiliates 1,658,532.04 -412,713.12
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value 914,599.37
Credit impairment loss -2,985,253.53 -4,347,598.84
Impairment loss of assets -42,073,672.20 -52,628,070.13
Assets disposal income -11,114.72 -55.96
III. Operational profit（“-”for loss） 68,890,583.93 101,208,982.83
Add ：Non-operational income 1,768,115.05 20,437,452.38
Less: Non-operating expense 213,090.29 344,978.92
IV. Total profit(“-”for loss) 70,445,608.69 121,301,456.29
Less：Income tax expenses 340,897.81 7,878,916.04
V. Net profit 70,104,710.88 113,422,540.25
(I) Classification by business continuity
1.Net continuing operating profit 70,104,710.88 113,422,540.25
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 42,433,525.10 76,603,074.39
2.Minority shareholders’ equity 27,671,185.78 36,819,465.86
VI. Net after-tax of other comprehensive income 75,756.02 -5,049,289.77
Net of profit of other comprehensive income attributable to owne 75,756.02 -5,049,289.77
rs of the parent company.
（I）Other comprehensive income items that will not be
-1,003,968.91
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or ne
t assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-1,003,968.91
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（II）
Other comprehensive income that will be reclassified into profit o 75,756.02 -4,045,320.86
r loss.
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 75,756.02 -4,045,320.86
7.Other
Net of profit of other comprehensive income attributable to Mino
rity shareholders’ equity
VII. Total comprehensive income 70,180,466.90 108,373,250.48
Total comprehensive income attributable to the owner of the
42,509,281.12 71,553,784.62
parent company
Total comprehensive income attributable minority shareholders 27,671,185.78 36,819,465.86
VIII. Earnings per share
（I）Basic earnings per share 0.0838 0.1509
(II)Diluted earnings per share 0.0838 0.1509
The current business combination under common control, the net profits of the combined party before achieved
net profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Zhu Jingjing
4. Income statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 21,156,669.75 38,146,662.35
Incl：Business cost 5,203,409.57 5,346,478.59
Business tax and surcharge 1,379,026.92 1,523,347.63
Sales expense 61,120.10
Administrative expense 20,247,344.52 19,834,907.43
R & D expense
Financial expenses -246,370.02 162,410.11
Including：Interest expenses 339,399.60
Interest income -227,023.28 -171,381.45
Add：Other income 181,448.97 50,000.00
Investment gain（“-”for loss） 11,334,212.84 9,140,645.27
Including: investment gains from affiliates 1,658,532.04 -412,713.12
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value 914,599.37
Credit impairment loss -106,152.94 -196,707.89
Impairment loss of assets
Assets disposal income
II. Operational profit（“-”for loss） 5,921,647.53 21,188,055.34
Add ：Non-operational income
Less：Non -operational expenses 100,000.00
III. Total profit(“-”for loss) 5,821,647.53 21,188,055.34
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Less：Income tax expenses 262,406.66 3,381,310.97
IV. Net profit 5,559,240.87 17,806,744.37
1.Net continuing operating profit 5,559,240.87 17,806,744.37
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 75,756.02 -5,049,289.77
（I）Other comprehensive income items that will not be
-1,003,968.91
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or ne
t assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
-1,003,968.91
instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into pro 75,756.02 -4,045,320.86
fit or loss
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 75,756.02 -4,045,320.86
7.Other
VI. Total comprehensive income 5,634,996.89 12,757,454.60
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1,337,065,239.48 1,120,318,752.18
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
Cash received from interest, commission charge and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 2,595,000.19 7,389,955.19
Other cash received from business operation 287,019,693.63 42,020,491.27
Sub-total of cash inflow 1,626,679,933.30 1,169,729,198.64
Cash paid for purchasing of merchandise and services 1,225,526,384.08 904,947,382.28
Net increase of client trade and advance
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid to staffs or paid for staffs 132,733,244.30 131,060,141.64
Taxes paid 139,777,733.09 25,418,187.30
Other cash paid for business activities 49,204,337.24 160,947,023.67
Sub-total of cash outflow from business activities 1,547,241,698.71 1,222,372,734.89
Net cash generated from /used in operating activities 79,438,234.59 -52,643,536.25
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 2,636,054.80 7,958,287.14
Net cash retrieved from disposal of fixed assets, intangible assets,
2,776.70
and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 635,000,000.00 779,428,611.40
Sub-total of cash inflow due to investment activities 637,638,831.50 787,386,898.54
Cash paid for construction of fixed assets, intangible assets and
31,252,419.31 195,798,969.38
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 activities 650,000,001.00 732,374,977.65
Sub-total of cash outflow due to investment activities 681,252,420.31 928,173,947.03
Net cash flow generated by investment -43,613,588.81 -140,787,048.49
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 50,572,000.00 201,089,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 50,572,000.00 201,089,000.00
Cash to repay debts
Cash paid as dividend, profit, or interests 40,857,882.81 24,141,288.78
Including: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 7,820,298.30
Sub-total of cash outflow due to financing activities 40,857,882.81 31,961,587.08
Net cash flow generated by financing 9,714,117.19 169,127,412.92
IV. Influence of exchange rate alternation on cash and cash
713,784.26 -1,040,300.91
equivalents
V.Net increase of cash and cash equivalents 46,252,547.23 -25,343,472.73
Add: balance of cash and cash equivalents at the beginning of
302,408,433.72 278,337,236.95
term
VI ..Balance of cash and cash equivalents at the end of term 348,660,980.95 252,993,764.22
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 30,439,993.40 36,947,544.62
Tax returned 200,005.60
Other cash received from business operation 8,775,816.77 23,757,836.70
Sub-total of cash inflow 39,415,815.77 60,705,381.32
Cash paid for purchasing of merchandise and services 5,066,002.25 5,951,213.89
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Cash paid to staffs or paid for staffs 16,859,518.32 15,731,460.61
Taxes paid 3,475,718.60 14,531,396.20
Other cash paid for business activities 9,214,911.23 3,676,889.38
Sub-total of cash outflow from business activities 34,616,150.40 39,890,960.08
Net cash generated from /used in operating activities 4,799,665.37 20,814,421.24
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 2,636,054.80 5,448,251.42
Net cash retrieved from disposal of fixed assets, intangible assets,
and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 635,000,000.00 347,796,939.77
Sub-total of cash inflow due to investment activities 637,636,054.80 353,245,191.19
Cash paid for construction of fixed assets, intangible assets and
238,180.00 1,325,797.35
other long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 650,000,001.00 384,000,000.00
Sub-total of cash outflow due to investment activities 650,238,181.00 385,325,797.35
Net cash flow generated by investment -12,602,126.20 -32,080,606.16
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend, profit, or interests 25,326,092.45 15,176,281.23
Other cash paid for financing activities 7,820,298.30
Sub-total of cash outflow due to financing activities 25,326,092.45 22,996,579.53
Net cash flow generated by financing -25,326,092.45 -22,996,579.53
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents -33,128,553.28 -34,262,764.45
Add: balance of cash and cash equivalents at the beginning of
130,236,340.98 113,560,327.21
term
VI ..Balance of cash and cash equivalents at the end of term 97,107,787.70 79,297,562.76
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument
Oth Min
Co Tota
Less er or
Spe mm l of
Items Shar Pre Sus Capi : Co Surp Reta shar
own
ciali on ehol
e ferr tain tal Shar mpr lus ined Oth Subt ers’
Capi Oth rese es in ehen zed rese risk prof er otal ders’
equi
tal
ed abl rves stoc sive
rese
rves
prov
it equi
er rve isio ty
sto e k Inco ty
n
ck de me
bt
506, 1,96 119, 98,2 130, 2,81 1,14 3,96
I .Balance at
521, 1,59 682, 45,8 746, 6,79 7,03 3,82
the end of
last year 849. 9,82 119. 45.4 251. 5,88 3,35 9,24
00 4.63 05 7 74 9.89 7.18 7.07
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II. Balance at 506, 1,96 119, 98,2 130, 2,81 1,14 3,96
the 521, 1,59 682, 45,8 746, 6,79 7,03 3,82
beginning of 849. 9,82 119. 45.4 251. 5,88 3,35 9,24
current year 00 4.63 05 7 74 9.89 7.18 7.07
17,1 17,1 27,6 44,8
III .Changed 75,7
07,4 83,1 71,1 54,3
in the current 0.00 0.00 56.0
year 32.6 88.6 85.7 74.4
2
5 7 8 5
42,4 42,5 27,6 70,1
（1）Total 75,7
33,5 09,2 71,1 80,4
comprehensi 56.0
25.1 81.1 85.7 66.9
ve income 2
0 2 8 0
（II）
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
- - -
25,3 25,3 25,3
（III）Profit
26,0 26,0 26,0
allotment
92.4 92.4 92.4
5 5 5
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
3．Allotmen - - -
t to the 25,3 25,3 25,3
owners (or 26,0 26,0 26,0
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
shareholders) 92.4 92.4 92.4
5 5 5
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
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
506, 1,96 119, 98,2 147, 2,83 1,17 4,00
IV. Balance
521, 1,59 757, 45,8 853, 3,97 4,70 8,68
at the end of
this term 849. 9,82 875. 45.4 684. 9,07 4,54 3,62
00 4.63 07 7 39 8.56 2.96 1.52
Amount in last year
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company
Other Equity Oth Min
Co Tota
instrument Less er or
Spe mm l of
Items Shar Capi : Co Surp Reta shar
Pref ciali on own
e tal Shar mpr lus ined Oth Subt ehol
erre Sust zed risk ers’
Capi Oth rese es in ehen rese prof er otal ders’
d aina rese prov equi
tal er rves stoc sive rves it equi
stoc ble rve isio ty
k Inco ty
k debt n
me
I .Balance at 507, 1,96 7,52 116, 94,9 86,9 2,76 1,13 3,89
12
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
the end of 772, 7,51 5,43 605, 54,6 12,3 6,23 3,08 9,31
last year 279. 4,35 8.20 932. 52.1 90.5 4,17 1,07 5,24
00 8.53 42 4 0 4.39 5.23 9.62
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II.Balance at 507, 1,96 116, 94,9 86,9 2,76 1,13 3,89
7,52
the 772, 7,51 605, 54,6 12,3 6,23 3,08 9,31
5,43
beginning of 279. 4,35 932. 52.1 90.5 4,17 1,07 5,24
current year 8.20
00 8.53 42 4 0 4.39 5.23 9.62
- - - - 61,4 56,7 36,8 93,5
III .Changed
1,25 5,91 7,52 5,04 07,4 18,6 19,4 38,0
in the current
year 0,43 4,53 5,43 9,28 18.9 03.4 65.8 69.3
0.00 3.90 8.20 9.77 2 5 6 1
- 76,6 71,5 36,8 108,
（1）Total
5,04 03,0 53,7 19,4 373,
comprehensi
9,28 74.3 84.6 65.8 250.
ve income
9.77 9 2 6 48
（II） - - -
Investment 360, 360,
1,25 5,91 7,52
or decreasing 474. 474.
0,43 4,53 5,43
of capital by 30 30
owners 0.00 3.90 8.20
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
- - -
360, 360,
1,25 5,91 7,52
4．Other 474. 474.
0,43 4,53 5,43
30 30
0.00 3.90 8.20
- - -
15,1 15,1 15,1
（III）Profit
95,6 95,6 95,6
allotment
55.4 55.4 55.4
7 7 7
1.Providing
of surplus
reserves
13
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
2.Providing
of common
risk
provisions
- - -
3．Allotmen
15,1 15,1 15,1
t to the
95,6 95,6 95,6
owners (or
shareholders) 55.4 55.4 55.4
7 7 7
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
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
506, 1,96 111, 94,9 148, 2,82 1,16 3,99
IV. Balance
521, 1,59 556, 54,6 319, 2,95 9,90 2,85
at the end of 0.00
this term 849. 9,82 642. 52.1 809. 2,77 0,54 3,31
00 4.63 65 4 42 7.84 1.09 8.93
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
14
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
In RMB
The first half year of 2022
Other Equity instrument Other
Total
Capita Less: Comp Specia Surplu
Items Retain of
Share Prefer l Shares rehens lized s
Sustai ed Other owner
capital red Other reserv in ive reserv reserv
nable profit s’
stock es stock Incom e es
debt equity
e
I.Balance at 506,5 1,577, 108,7 98,24 690,8 2,981,
the end of 21,84 392,9 62,53 5,845. 79,11 802,3
last year 9.00 75.96 8.39 47 8.40 27.22
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506,5 1,577, 108,7 98,24 690,8 2,981,
the
21,84 392,9 62,53 5,845. 79,11 802,3
beginning of
9.00 75.96 8.39 47 8.40 27.22
current year
- -
III .Changed
75,75 19,76 19,69
in the current
6.02 6,851. 1,095.
year
58 56
（I）Total 5,559, 5,634,
75,75
comprehensi 240.8 996.8
6.02
ve income 7 9
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
- -
（III）Profit 25,32 25,32
allotment 6,092. 6,092.
45 45
1.Providing
of surplus
reserves
15
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
2．Allotmen - -
t to the 25,32 25,32
owners (or 6,092. 6,092.
shareholders) 45 45
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.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
IV. Balance 506,5 1,577, 108,8 98,24 671,1 2,962,
at the end of 21,84 392,9 38,29 5,845. 12,26 111,23
this term 9.00 75.96 4.41 47 6.82 1.66
Amount in last year
In RMB
The first half year of 2021
Other Equity instrument Other
Total
Capita Less: Comp Specia Surplu
Items Share Retain of
Prefer l Shares rehens lized s
Capita Sustai ed Other owner
red Other reserv in ive reserv reserv
l nable profit s’
stock es stock Incom e es
debt equity
e
I.Balance at 507,7 1,583, 7,525, 107,6 94,95 676,4 2,962,
the end of 72,27 307,5 438.2 32,18 4,652. 54,03 595,2
last year 9.00 09.86 0 6.85 14 3.89 23.54
16
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
507,7 1,583, 7,525, 107,6 94,95 676,4 2,962,
the
72,27 307,5 438.2 32,18 4,652. 54,03 595,2
beginning of
9.00 09.86 0 6.85 14 3.89 23.54
current year
- - - - -
III. Changed 2,611,
1,250, 5,914, 7,525, 5,049, 2,077,
in the current 088.9
430.0 533.9 438.2 289.7 726.5
year 0
0 0 0 7 7
- -
（I）Total 2,611,
5,049, 2,438,
comprehensi 088.9
289.7 200.8
ve income 0
7 7
(II) - - -
Investment
1,250, 5,914, 7,525, 360,4
or decreasing
of capital by 430.0 533.9 438.2 74.30
owners 0 0 0
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
- - -
1,250, 5,914, 7,525, 360,4
4．Other
430.0 533.9 438.2 74.30
0 0 0
（III）Profit
allotment
1.Providing
of surplus
reserves
2．Allotmen
t to the
owners (or
shareholders)
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
17
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
IV. Balance 506,5 1,577, 102,5 94,95 679,0 2,960,
at the end of 21,84 392,9 82,89 4,652. 65,12 517,4
this term 9.00 75.96 7.08 14 2.79 96.97
III. Basic Information of the Company
Shenzhen Textile (Group) Co., Ltd. (hereinafter referred to as "Company" or "the Company") is a joint-stock
company registered in Guangdong Province with a registered capital of RMB 506.521849 million and a unified
social credit code of 91440300192173749Y. The Company has publicly issued RMB common shares (A shares)
and domestic listed foreign shares (B shares) to the public at home and abroad, and listed and traded them. The
Company is headquartered address are 6/F,Shenfang Building, No.3 Huaqiang Road. North, Futian District,
Shenzhen.
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 (Group) Co., Ltd. ，As of June 30, 2022, the Company has issued a total of
506,521,849.00 shares.
The Company has established the corporate governance structure of General Meeting of Shareholders,
Board of Directors and Board of Supervisors, and currently has the Board Office, Office, Strategic
Development Department, Operation and Management Department, Finance Department, Audit Department,
Human Resources Department and other departments.
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-
18
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
class textile and garment business.
The financial statements have been authorized for issuance of the 15th meeting of the 8th Board of Directors of
the Group on August 23,2022.
I.Scope of consolidated financial statements
As of June 30, 2022, A total of 8 subsidiaries of the Company are included in the scope of consolidation. For
details, please refer to Note IX "Rights and Interests in Other Subjects".
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and its application guidelines, interpretations and other relevant
provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, the
Company also disclosed relevant financial information in accordance with the Rules No.15 for the Information
Disclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on
Financial Report (revised in 2014) issued by China Securities Regulatory Commission.
The financial statements are presented on the basis of going concern.
The accounting of the Company is based on accrual basis. Except for some financial instruments, the
financial statements are based on historical costs. In case of asset impairment, impairment provision shall be
made in accordance with relevant regulations.
(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:
According to its own production and operation characteristics, the company determines the depreciation of
fixed assets, intangible assets amortization and income recognition policies, For specific accounting policies,
see "10 Financial Report 5, Important Accounting Policies and Accounting Estimates 24, Fixed Assets", " 10
Financial Report 5, Important Accounting Policies and Accounting Estimates 30, Intangible Assets", "Section
10 Financial Report 5, Important Accounting Policies and Accounting Estimates 39, Revenue".
1. Statement on complying with corporate accounting standards
This financial statement conforms to the requirements of Accounting Standards for Business Enterprises, and
truly and completely reflects the combination and financial status of the Company on June 30, 2022, as well as
the combination and operating results and cash flow 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
The operating cycle of the Company is 12 months.
4. Accounting standard money
19
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
The Company and its domestic subsidiaries use RMB as their bookkeeping base currency. The overseas
subsidiaries of the Company determine RMB as their bookkeeping base currency according to the currency in
the main economic environment in which they operate. The currency used by the Company in preparing the
financial statements is RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For business combination under the same control, the assets and liabilities of the combined party acquired
by the merging party during the combination shall be measured according to the book value of the combined
party in the consolidated financial statements of the final controlling party on the combination date, except for
the adjustment due to different accounting policies. The difference between the book value of the combination
consideration and the book value of the net assets obtained in the combination adjusts the capital reserve. If the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements, the share of the book value of the net assets of the combined party in the
consolidated financial statements of the ultimate controlling party shall be taken as the initial investment cost of
the investment on the combination day calculated by the shareholding ratio on the combination day; Adjust the
capital reserve for the difference between the initial investment cost and the book value of the investment held
before the combination plus the book value of the consideration paid on the new day of the combination. If the
capital reserve is insufficient to offset, adjust the retained earnings.
In the consolidated financial statements, the assets and liabilities of the combined party acquired by the
merging party in the combination shall be measured according to the book value in the consolidated financial
statements of the ultimate controlling party on the combination date, except for the adjustment due to different
accounting policies; The difference between the book value of the investment held before the combination plus
the book value of the consideration paid on the new day of the combination and the book value of the net assets
obtained during the combination will be adjusted for capital reserve. If the capital reserve is insufficient to
offset, the retained earnings will be adjusted. For the long-term equity investment held by the merging party
before obtaining the control right of the combined party, the relevant profits and losses, other comprehensive
income and other changes in owner's equity have been recognized from the date of obtaining the original equity
and the date when the merging party and the combined party are under the same final control to the combination
date, and the initial retained earnings or current profits and losses during the comparative report period shall be
offset respectively.
(2) Business combination involving entities not under common control
For business combination not under the same control, the combination cost refers to the assets paid,
liabilities incurred or assumed, and fair value of the issued equity securities in order to gain control over the
acquiree on the acquisition date. On the acquisition date, the acquired assets, liabilities and contingent liabilities
of the acquiree are recognized at fair value.
The difference between the combination cost and the fair value share of identifiable net assets acquired in
the combination is recognized as goodwill, and the accumulated impairment provision is deducted by cost for
subsequent measurement; The difference between the combination cost and the fair value share of identifiable
net assets acquired by the acquiree in the combination shall be recorded into the current profits and losses after
review.
Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements, the sum of the book value of the equity investment held by the acquiree
20
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
before the acquisition date and the new investment cost on the acquisition date is taken as the initial investment
cost of the investment. Other comprehensive income recognized by the equity investment held before the
acquisition date due to accounting by the equity method is not treated on the acquisition date, and accounting
treatment is carried out on the same basis as that of the investee's direct disposal of related assets or liabilities;
The owner's equity recognized due to the change of owner's equity of the investee except net profit and loss,
other comprehensive income and profit distribution shall be transferred to the current profit and loss during the
disposal period when the investment is disposed. If the equity investment held before the acquisition date is
measured by fair value, the accumulated changes in fair value originally included in other comprehensive
income will be transferred to the current profits and losses when accounting by cost method.
In the consolidated financial statements, the consolidated cost is the sum of the consideration paid on the
acquisition date and the fair value of the equity of the acquiree held before the acquisition date on the
acquisition date. The equity of the acquiree held before the acquisition date shall be re-measured according to
the fair value of the equity on the acquisition date, and the difference between the fair value and its book value
shall be included in the current income; Equity of the acquiree held before the acquisition date involves other
comprehensive income, and other changes in owner's equity are converted into current income on the
acquisition date, except for other comprehensive income arising from the remeasurement of net liabilities or
changes in net assets of the set income plan by the investee.
(3) Treatment of transaction costs in business combination
Intermediary expenses such as auditing, legal services, evaluation and consultation, and other related
management expenses incurred for business combination are included in the current profits and losses when
they occur. Transaction costs of equity securities or debt securities issued as combination consideration are
included in the initial recognition amount of equity securities or debt securities.
6 Compilation method of consolidated financial statements
(1)The scope of consolidation
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee, enjoys variable returns by participating in the related
activities of the investee, and has the ability to use the power over the investee to affect its return amount.
Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,
structured subjects, etc.).
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee, enjoys variable returns by participating in the related
activities of the investee, and has the ability to use the power over the investee to affect its return amount.
Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,
structured subjects, etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the Company according to other relevant information. When preparing the
consolidated financial statements, the accounting policies and accounting period requirements of the Company
and its subsidiaries are consistent, and major transactions and current balances between companies are offset.
During the reporting period, the subsidiaries and businesses increased due to the business combination under the
same control shall be deemed to be included in the consolidation scope of the Company from the date when
they are controlled by the ultimate controller, and their operating results and cash flows from the date when they
are controlled by the ultimate controller shall be included in the consolidated income statement and the
21
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
consolidated cash flow statement respectively.
During the reporting period, the income, expenses and profits of subsidiaries and businesses increased
from the acquisition date to the end of the reporting period due to business combination not under the same
control during the reporting period are included in the consolidated income statement, and their cash flows are
included in the consolidated cash flow statement.
The part of shareholders' equity of subsidiaries that is not owned by the Company is listed separately as
minority shareholders' equity in the consolidated balance sheet; The share of minority shareholders' equity in
the current net profit and loss of subsidiaries is listed as "minority shareholders' profit and loss" under the net
profit item in the consolidated income statement. If the loss of subsidiary shared by minority shareholders
exceeds the share enjoyed by minority shareholders in the initial owner's equity of such subsidiary, the balance
still offsets minority shareholders' equity.
(3) Acquisition of minority shareholders' equity of subsidiaries
The capital reserve in the consolidated balance sheet shall be adjusted for the difference between the newly
acquired long-term equity investment cost due to the acquisition of minority shares and the share of net assets
continuously calculated by subsidiaries from the acquisition date or combination date, and the difference
between the disposal price obtained from partial disposal of equity investment in subsidiaries without losing
control and the share of net assets continuously calculated by subsidiaries from the acquisition date or
combination date corresponding to the disposal of long-term equity investment. If the capital reserve is
insufficient to offset, the retained earnings shall be adjusted.
(4) Treatment of losing control over subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the remaining equity shall be re-measured according to its fair value on the date of loss of control; The
sum of the consideration obtained from the disposal of equity and the fair value of remaining equity, minus the
sum of the share of the original subsidiary's book value of net assets calculated continuously from the
acquisition date and goodwill calculated according to the original shareholding ratio, and the difference formed
is included in the investment income of the current period of loss of control.
Other comprehensive income related to the original subsidiary's equity investment will be transferred to the
current profits and losses when the control right is lost, except for other comprehensive income generated by the
investee's remeasurement of the net liabilities or changes in net assets of the set income plan.
7.Joint venture arrangements classification and Co-operation accounting treatment
Joint venture arrangement refers to an arrangement under the joint control of two or more participants. The
joint venture arrangement of the Company is divided into joint operation and joint venture.
(1) Joint operation
Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets
related to the arrangement and bears the liabilities related to the arrangement.
The Company recognizes the following items related to the share of interests in joint operation, and carries
out accounting treatment in accordance with the relevant accounting standards for business enterprises:
A. Recognize assets held separately and assets held jointly according to their shares;
B. Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertaken
according to their shares;
C. Recognize the income generated from the sale of its share of joint operating output;
D. Recognize the income generated by the sale of output from joint operation according to their shares;
E. Recognize the expenses incurred separately, and recognize the expenses incurred in joint operation
according to their shares.
22
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
(2) Joint venture
A joint venture refers to a joint venture arrangement in which the Company only has rights to the net assets
of the arrangement.
The Company shall carry out accounting treatment on the investment of the joint venture in accordance
with the provisions on accounting of long-term equity investment by the equity method.
8.Recognition Standard of Cash & Cash Equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer
to investments held by the Company with short term, strong liquidity, easy conversion into known cash and
little risk of value change.
9.Foreign currency transaction
In case of foreign currency business of the Company, the exchange rate determined by a systematic and
reasonable method which is similar to the spot exchange rate on the transaction date shall be used to convert it
into the bookkeeping base currency amount.
Balance sheet date: foreign currency monetary items shall be converted at the spot exchange rate on the
balance sheet date. Exchange differences arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition or the previous balance sheet date
are included in the current profits and losses; For foreign currency non-monetary items measured at historical
cost, the spot exchange rate on the transaction date is still adopted; Foreign currency non-monetary items
measured at fair value are converted at the spot exchange rate on the fair value determination date, and the
difference between the converted bookkeeping base currency amount and the original bookkeeping base
currency amount is included in the current profits and losses.
10.Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or
equity instruments of other parties.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract, a financial asset or financial
liability is recognized.
Financial assets that meet one of the following conditions shall be derecognized:
① Termination of the contractual right to receive cash flow from the financial asset;
② The financial asset has been transferred and the following conditions for derecognition of financial asset
transfer are met.
If all or part of the current obligations of a financial liability have been discharged, the financial liability or
part of it shall be derecognized. If the Company (debtor) signs an agreement with the creditor to replace the
existing financial liabilities by assuming new financial liabilities, and the contract terms of the new financial
liabilities are substantially different from those of the existing financial liabilities, the existing financial
liabilities shall be derecognized and the new financial liabilities shall be recognized at the same time.
When trading the financial assets in a conventional way, accounting recognition and derecognition shall be
carried out according to the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company divides financial assets into the following three categories: financial assets
23
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
measured at amortized cost, financial assets measured at fair value with changes included in other
comprehensive income, and financial assets measured at fair value with changes included in current profits and
losses.
Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated to be
measured at fair value with changes included in current profits and losses as financial assets measured at
amortized cost:
The Company's business model of managing such financial assets is to collect contract cash flow as the goal;
According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.
After initial recognition, such financial assets are measured in amortized cost by the effective interest rate
method. Gains or losses arising from financial assets measured in amortized cost that are not part of any
hedging relationship are included in current profits and losses when derecognition, amortization according to
the effective interest rate method, or impairment recognition.
Financial assets measured at fair value and changes included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
measured at fair value with changes included in current profits and losses as financial assets measured at fair
value with changes included in other comprehensive income:
The company's business model of managing the financial assets aims at both collecting contract cash flow and
selling the financial assets;
According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.
After initial recognition, the fair value of such financial assets is subsequently measured. Interest, impairment
losses or gains and exchange gains and losses calculated by the effective interest rate method are included in the
current profits and losses, while other gains or losses are included in other comprehensive income. Upon
termination of recognition, the accumulated gains or losses previously included in other comprehensive income
shall be transferred out of other comprehensive income and included in current profits and losses.
Financial assets measured at fair value with changes included in current profits and losses
Except for the above financial assets measured at amortized cost and at fair value with changes included in
other comprehensive income, the Company classifies all other financial assets as financial assets measured at
fair value with changes included in current profits and losses. At the time of initial recognition, in order to
eliminate or significantly reduce accounting mismatch, the Company irrevocably designated some financial
assets that should have been measured at amortized cost or at fair value with changes included in other
comprehensive income as financial assets measured at fair value with changes included in current profits and
losses.
After initial recognition, the financial assets are subsequently measured at fair value, and the resulting
gains or losses (including interest and dividend income) are included in the current profits and losses, unless the
financial assets are part of the hedging relationship.
However, for non-trading equity instrument investments, the Company can irrevocably designate them as
financial assets measured at fair value with changes included in other comprehensive income upon initial
recognition. The designation is made on the basis of a single investment, and the relevant investment conforms
to the definition of equity instruments from the perspective of the issuer.
After initial recognition, the fair value of such financial assets is subsequently measured. Dividend income
that meets the requirements is included in profit or loss, and other gains or losses and changes in fair value are
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
included in other comprehensive income. Upon termination of recognition, the accumulated gains or losses
previously included in other comprehensive income shall be transferred out of other comprehensive income and
included in retained income.
The business model of managing financial asset refers to how the Company manages financial assets to
generate cash flow. The business model determines whether the cash flow of financial assets managed by the
Company comes from contract cash flow, sale of financial assets or both. The Company determines the business
model of managing financial assets based on objective facts and specific business objectives of managing
financial assets decided by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether
the contractual cash flow generated by related financial assets on a specific date is only the payment of principal
and interest based on the unpaid principal amount. Where, the principal refers to the fair value of financial
assets at initial recognition; Interest includes consideration for the time value of money, credit risk related to the
unpaid principal amount in a specific period, and other basic borrowing risks, costs and profits. In addition, the
Company evaluates the contract clauses that may cause changes in the time distribution or amount of cash flow
of financial assets contracts to determine whether they meet the requirements of the above-mentioned contract
cash flow characteristics.
Only when the Company changes its business model for managing financial assets, all affected financial
assets shall be reclassified on the first day of the first reporting period after the business model changes,
otherwise, financial assets shall not be reclassified after initial recognition.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount. Accounts receivable arising from the sale of products or the provision of labor
services that do not include or take into account significant financing components are initially recognized by the
Company in accordance with the amount of consideration that the Company is expected to be entitled to
receive.
(3) Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Company are classified into: financial liabilities
measured at fair value with changes included in current profits and losses, and financial liabilities measured at
amortized cost. For financial liabilities that are not classified as measured at fair value with changes included in
current profits and losses, relevant transaction costs are included in their initial recognition amount.
Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value with changes included in current profits and losses include
transactional financial liabilities and financial liabilities designated at fair value at initial recognition with
changes included in current profits and losses. Such financial liabilities are subsequently measured according to
fair value, and the gains or losses caused by changes in fair value and dividends and interest expenses related to
such financial liabilities are included in current profits and losses.
Financial liabilities measured in amortized cost
Other financial liabilities are subsequently measured according to the amortized cost by the effective
interest rate method, and the gains or losses arising from derecognition or amortization are included in the
current profits and losses.
Distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
① Contract obligation to deliver cash or other financial assets to other parties.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
② The contractual obligation to exchange financial assets or financial liabilities with other parties under
potential unfavorable conditions.
③ Non-derivative contracts that need to be settled or can be settled by the enterprise's own equity
instruments in the future, for which the enterprise will deliver a variable number of its own equity instruments
according to this contract.
④ Derivative contracts that need to be settled or can be settled by the enterprise's own equity instruments
in the future, except for derivative contracts that exchange a fixed amount of its own equity instruments for a
fixed amount of cash or other financial assets.
Equity instruments refer to contracts that can prove ownership of an enterprise's residual equity in assets
after deducting all liabilities.
If the Company can't unconditionally avoid delivering cash or other financial assets to fulfill a contractual
obligation, the contractual obligation meets the definition of financial liabilities.
If a financial instrument needs to be settled or can be settled by the Company's own equity instrument, it
shall be considered whether its own equity instrument used to settle the instrument is a substitute for cash or
other financial assets, or it is to enable the holder of such instrument to be entitled to the remaining equity in the
assets after all liabilities are deducted by the issuer. In the former case, the instrument is the financial liability of
the Company; In the latter case, the instrument is the equity instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
Initially, it is measured at the fair value on the day when the derivative transaction contract is signed, and
then measured at its fair value. Derivative financial instruments with positive fair value are recognized as an
asset, while those with negative fair value are regarded as an liability. Any gains or losses arising from changes
in fair value that do not meet the requirements of hedge accounting are directly included in the current profits
and losses.
For mixed instruments including embedded derivative, if the main contract is financial assets, the relevant
provisions of financial asset classification shall apply to the mixed instruments as a whole. If the main contract
is not a financial asset, and the mixed instrument is not measured at fair value with changes included in the
current profits and losses for accounting treatment, the embedded derivative is not closely related to the main
contract in terms of economic characteristics and risks, and has the same conditions as the embedded derivative,
and if the independent instrument meets the definition of derivative, the embedded derivative is split from the
mixed instrument and treated as a separate derivative financial instrument. If the embedded derivative cannot be
separately measured at the time of acquisition or on the subsequent balance sheet date, the mixed instruments as
a whole are designated as financial assets or financial liabilities measured at fair value with changes included in
the current profits and losses.
(5) Fair value of financial instruments
See Note III. 11 for the determination method of the fair value of financial assets and financial liabilities.
(6) Impairment of financial assets
Based on the expected credit loss, the Company will carry out impairment accounting treatment on the
following items and recognize the loss reserve:
① Financial assets measured at amortized cost;
② Receivables and debt investments measured at fair value and included in other comprehensive income;
③ Lease receivables;
④ Financial guarantee contracts (except those which are measured at fair value with changes included in
current profits and losses, in which the transfer of financial assets does not meet the conditions for
derecognition, or those formed by continuing to involve the transferred financial assets).
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Measurement of expected credit loss
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted
according to the original real interest rate and the expected cash flow of all contracts receivable according to the
contract, that is, the present value of all cash shortages.
The Company takes into account reasonable and reliable information on historical events, current situation
and future economic situation forecasts, and uses the risk of default as the weight to calculate the probability
weighted amount of the present value of the difference between the cash flow receivable from the contract and
the cash flow expected to be received to recognize the expected credit loss.
The Company separately measures the expected credit losses of financial instruments at different stages. If
the credit risk of financial instruments has not increased significantly since the initial recognition, it is in the
first stage. The Company measures the loss reserve according to the expected credit loss in the next 12 months;
If the credit risk of a financial instrument has increased significantly since its initial recognition but no credit
impairment has occurred, it is in the second stage. The Company measures the loss reserve according to the
expected credit loss of the instrument throughout the duration; If a financial instrument has suffered credit
impairment since its initial recognition, it is in the third stage. The Company measures the loss reserve
according to the expected credit loss of the instrument throughout the duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that their
credit risk has not increased significantly since the initial recognition, and measures the loss reserve according
to the expected credit loss in the next 12 months.
The expected credit loss in the whole duration refers to the expected credit loss caused by all possible
default events in the whole expected duration of financial instruments. The expected credit loss in the next 12
months refers to the expected credit loss caused by the financial instrument default event that may occur within
12 months after the balance sheet date (or within the expected duration if the expected duration of the financial
instrument is less than 12 months), which is a part of the expected credit loss in the whole duration.
When measuring the expected credit loss, the longest period that the Company needs to consider is the
longest contract period during which the enterprise is subject to credit risk (including the option to renew the
contract).
For financial instruments in the first and second stages and with low credit risk, the Company calculates
interest income based on the book balance before deducting impairment provisions and the actual interest rate.
For financial instruments in the third stage, the interest income shall be calculated according to their book
balance minus the amortized cost after impairment provision and the actual interest rate.
For notes receivable and accounts receivable, regardless of whether there is significant financing
component, the Company always measures the loss reserve according to the amount equivalent to the expected
credit loss in the whole duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: commercial acceptance bill
B. Accounts receivable
Accounts receivable portfolio 1: polarizer sales receivable
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own property
Accounts receivable portfolio 4: other receivables
For notes receivable divided into portfolios, the Company refers to the historical credit loss experience,
and calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the
whole duration based on the current situation and forecasts the future economic situation.
For accounts receivable divided into combinations, the Company refers to the historical credit loss
experience, combines the current situation with the forecast of future economic situation, compiles a
comparison table of aging/overdue days of accounts receivable and the expected credit loss rate for the whole
duration, and calculates the expected credit loss.
Other receivables
The Company classifies other receivables into several combinations according to the credit risk
characteristics, and calculates the expected credit losses based on the portfolios. The basis for determining the
portfolio is as follows:
Other receivables portfolio: aging portfolio
For other receivables classified as portfolios, the Company calculates the expected credit loss through the
default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
Debt investment and other debt investment
For creditor's rights investment and other creditor's rights investment, the Company calculates the expected
credit loss according to the nature of the investment, the counterparty and various types of risk exposure and
based on the expected credit loss rate in the next 12 months or the whole duration.
Evaluation of significant increase in credit risk
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date, the Company determines the relative change of default risk of financial
instruments in the expected duration, and evaluates whether the credit risk of financial instruments has
increased significantly since initial recognition.
When determining whether the credit risk has increased significantly since the initial recognition, the
company considers to obtain reasonable and reliable information without unnecessary extra costs or efforts,
including forward-looking information. Information considered by the Company includes:
The debtor fails to pay the principal and interest according to the expiration date of the contract;
Serious deterioration of external or internal credit rating (if any) of financial instruments that has occurred or is
expected;
Serious deterioration of the debtor's operating results that has occurred or is expected;
Changes in existing or expected technology, market, economic or legal environment, and significant adverse
effects on the debtor's repayment ability of the Company.
According to the nature of financial instruments, the Company assesses whether credit risks have increased
significantly on the basis of individual financial instruments or financial instrument portfolios. When evaluating
on the basis of financial instrument portfolio, the Company can classify financial instruments based on common
credit risk characteristics, such as overdue information and credit risk rating.
Financial assets with credit impairment
On the balance sheet date, the Company evaluates whether the financial assets measured at amortized cost
and the creditor's rights investments measured at fair value with changes included in other comprehensive
income have suffered credit impairment. When one or more events that adversely affect the expected future
cash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Evidence of credit impairment of financial assets includes the following observable information:
The issuer or debtor has major financial difficulties;
The debtor violates the contract, such as default or overdue payment of interest or principal;
The Company gives concessions that the debtor will not make under any other circumstances due to economic
or contractual considerations related to the debtor's financial difficulties;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor cause the active market of the financial assets to disappear.
Presentation of expected credit loss provision
In order to reflect the change of credit risk of financial instruments after initial recognition, the Company
re-measures the expected credit loss on each balance sheet date, and the resulting increase or reversal amount of
loss reserve shall be included in the current profits and losses as impairment losses or gains. For financial assets
measured in amortized cost, the loss reserve shall be offset against the book value of the financial assets listed
in the balance sheet; For creditor's rights investments measured at fair value with changes included in other
comprehensive income, the Company recognizes its loss reserve in other comprehensive income, which does
not offset the book value of the financial asset.
Cancel after verification
If the Company no longer reasonably expects the contract cash flow of financial assets to be fully or
partially recovered, it will directly write down the book balance of the financial assets. This write-down
constitutes the derecognition of related financial assets. It usually happens when the Company determines that
the debtor has no assets or income sources to generate enough cash flow to repay the amount to be written
down. However, according to the Company's procedures for recovering the due amount, the written-down
financial assets may still be affected by the implementation activities.
If the written-down financial assets are recovered later, they will be included in profits and losses of the
current recovery period as the reversal of impairment losses.
(7) Transfer of financial assets
Transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee)
other than the issuer of the financial assets.
If the company has transferred almost all risks and rewards in the ownership of the financial asset to the
transferee, the recognition of the financial asset shall be terminated; If almost all risks and rewards on the
ownership of a financial asset are retained, the financial asset shall not be derecognized.
If the Company has neither transferred nor retained almost all risks and rewards in the ownership of
financial assets, it shall be dealt with as follows: if the control of the financial assets is abandoned, the financial
assets shall be derecognized and the resulting assets and liabilities shall be recognized; If the control of the
financial assets is not abandoned, the relevant financial assets shall be recognized according to the extent of
their continued involvement in the transferred financial assets, and the relevant liabilities shall be recognized
accordingly.
(8) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized financial assets and financial liabilities,
which can be enforced at present, and the Company plans to settle by net amount or at the same time realize
such financial assets and pay off such financial liabilities, the financial assets and financial liabilities are listed
in the balance sheet with the amount after offset. In addition, financial assets and financial liabilities are listed
separately in the balance sheet and will not be offset against each other.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
11. Notes receivable
For notes receivable and accounts receivable, regardless of whether there is significant financing component,
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: commercial acceptance bill
For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, and
calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the whole
duration based on the current situation and forecasts the future economic situation.
12. Accounts receivable
For notes receivable and accounts receivable, regardless of whether there is significant financing component,
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
Accounts receivable portfolio 1: polarizer sales receivable
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own property
Accounts receivable portfolio 4: other receivables
For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of future economic situation, compiles a comparison table of
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculates
the expected credit loss.
13. Receivable financing
For bills receivable and accounts receivable classified as those measured at fair value and whose changes
are included in other comprehensive income, the portion with self-financing period within one year (including
one year) is listed as receivables financing; If the period of self-acceptance is more than one year, it shall be
listed as other creditor's rights investment. For relevant accounting policies, please refer to Note V, (10)
"Financial Instruments" and Note V, (10) "Impairment of Financial instruments ".
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
The Company divides the other receivables into several portfolio according to the credit risk characteristics,
and calculates the expected credit losses on the basis of determining the portfolio as follows:
Other receivables portfolio: age portfolio:
For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of future economic situation, compiles a comparison table of
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculates
the expected credit loss.
15.Inventory
（1）Investories class
The Company's inventory includes raw materials, in-process products, low-value consumables, packaging
materials, inventory goods, and issued goods.
(2) Pricing method of issued inventory
The Company's inventory is priced at the actual cost when it is acquired. The weighted average method is
adopted when raw materials and inventory goods are issued.
(3) Determination basis of net realizable value of inventory and accrual method of inventory depreciation
reserve
The net realizable value of inventory is the estimated selling price of inventory minus the estimated costs
to be incurred upon completion, estimated sales expenses and related taxes. For determination of the net
realizable value of inventories, the solid evidence shall serve as the basis, and the purpose of holding
inventories and the influence of events after the balance sheet date shall be considered.
On the balance sheet date, if the inventory cost is higher than its net realizable value, inventory
depreciation reserve shall be made. The Company usually accrues the inventory depreciation reserve according
to individual inventory items. On the balance sheet date, if the influencing factors of previous inventory value
written down have disappeared, the inventory depreciation reserve will be returned within the originally accrued
amount.
(4) Inventory system of inventory
Perpetual inventory system is adopted for the Company's inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables and packaging materials of the Company are amortized by one-time write-off
method.
16.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its
performance obligations according to the contract, and which is not the right to collect money from customers
unconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contract
assets and liabilities under the same contract are listed in net amount, while contract assets and liabilities under
different contracts are not offset.
17.Contract Cost
Contract costs include incremental costs incurred for obtaining contracts and contract performance costs.
The incremental cost incurred for obtaining the contract refers to the cost that the Company will not incur
without obtaining the contract (such as sales commission, etc.). If the cost is expected to be recovered, the
Company will recognize it as the contract acquisition cost as an asset. Other expenses incurred by the Company to
obtain the contract except the incremental cost expected to be recovered are included in the current profits and
losses when incurred.
If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for enterprises such as inventory and meets the following conditions at the same time, the Company will
recognize it as the contract performance cost as an asset:
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
① Such cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred only
due to this contract;
② Such cost increases the resources of the Company for fulfilling its performance obligations in the future;
③ The cost is expected to be recovered.
Assets recognized by contract acquisition cost and assets recognized by contract performance cost
(hereinafter referred to as "Assets Related to Contract Cost") shall be amortized on the same basis as the revenue
recognition of goods or services related to the assets, and shall be included in current profits and losses.
When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will accrue impairment provision of the excess and recognize it as the asset
impairment loss:
① The remaining consideration expected to be obtained by the Company due to the transfer of goods or
services related to the asset;
② The estimated cost to be incurred for transferring the related goods or services.
The contract performance cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at the time of initial recognition, which shall be listed in "Inventory", and the amortization
period for more than one year or one normal business cycle at the time of initial recognition shall be listed in
"Other Non-current Assets".
The contract acquisition cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at initial recognition, and shall be listed in "Other Current Assets". The amortization period
for initial recognition shall exceed one year or one normal business cycle, and shall be listed in "Other Non-
current Assets".
18.Held-for-sale assets
(1) Classification and measurement of non-current assets or disposal groups held for sale
When the book value of a non-current asset or disposal group is recovered by the Company mainly by
selling it (including the exchange of non-monetary assets with commercial nation) rather than continuously
using it, the non-current asset or disposal group is classified as held for sale.
The above-mentioned non-current assets do not include investment real estate measured by fair value
model, biological assets measured by net amount of fair value minus selling expenses, assets formed by
employee compensation, financial assets, deferred income tax assets and rights arising from insurance contracts.
The disposal group refers to a group of assets disposed of together by sale or other means in a transaction
as a whole, and liabilities directly related to these assets transferred in the transaction. Under certain
circumstances, the disposal group includes goodwill obtained in business combination, etc.
Meanwhile, non-current assets or disposal groups that meet the following conditions are classified as held-
for-sale: according to the practice of selling such assets or disposal groups in similar transactions, the non-
current assets or disposal groups can be sold immediately under the current situation; The sale is very likely to
happen, that is, a resolution has been made on a sale plan and a certain purchase commitment has been obtained,
and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to
the sale of investments in subsidiaries, whether or not the Company retains part of the equity investments after
the sale, when the investment in subsidiaries to be sold meets the classification conditions of holding for sale,
the investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements,
and all assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial
statements.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
When the non-current assets or disposal groups held for sale are initially measured or re-measured on the
balance sheet date, the difference between the book value and the net amount after deduction of the sales
expenses from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss
recognized by the disposal group held for sale, the book value of goodwill in the disposal group is offset first,
and then the book value of non-current assets in the disposal group is offset proportionally.
If the net amount of non-current assets held for sale or disposal group's fair value minus sales expenses
increases on the subsequent balance sheet date, the previously written-down amount will be restored and
reversed within the amount of asset impairment loss recognized after being classified as held-for-sale, and the
reversed amount will be included in the current profits and losses. The book value of offset goodwill shall not
be reversed.
Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;
Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of
the investments of associated enterprises or joint ventures classified as held for sale shall be accounted for by
the equity method for those classified as held for sale, while those retained (not classified as held for sale) shall
continue to be accounted for by the equity method; When the Company loses significant influence on the
associated enterprises and joint ventures due to the sale, it shall stop using the equity method.
If a certain non-current asset or disposal group is classified as held-for-sale, but the classification
conditions of held-for-sale are no longer met, the Company will stop classifying it as held-for-sale and measure
it according to the lower of the following two amounts:
① The book value of the asset or disposal group before it is classified as held-for-sale, and the amount
adjusted according to the depreciation, amortization or impairment that should have been recognized without
being classified as held-for-sale;
② Recoverable amount.
19.Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12
months or the entire duration, based on whether the credit risk has increased significantly since the initial
recognition.
20.Other Creditor's rights investment
For creditor's rights investment and other creditor's rights investment, the Company calculates the expected
credit loss according to the nature of the investment, the counterparty and various types of risk exposure and
based on the expected credit loss rate in the next 12 months or the whole duration.
21.Long-term account receivable
None
22.Long-term equity investments
Long-term equity investment includes equity investment in subsidiaries, joint ventures and associated
enterprises. If the Company can exert significant influence on the investee, it is an associated enterprise of the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Company.
(1) Determination of initial investment cost
Long-term equity investment forming business combination: the long-term equity investment obtained by
business combination under the same control shall be taken as the investment cost according to the book value
share of the owner's equity of the combined party in the consolidated financial statements of the final
controlling party on the combination date; Long-term equity investment obtained by business combination not
under the same control shall be regarded as the investment cost of long-term equity investment according to the
combination cost.
For long-term equity investment obtained by other means: For long-term equity investment obtained by
payment in cash, the actual purchase price is taken as the initial investment cost; For long-term equity
investment obtained by issuing equity securities, the fair value of issuing equity securities is taken as the initial
investment cost.
(2) Subsequent measurement and profit and loss recognition method
Investment in subsidiaries shall be accounted by cost method, unless the investment meets the conditions
of holding for sale; Investment in associated enterprises and joint ventures shall be accounted for by equity
method.
For the long-term equity investment calculated by the cost method, except for the cash dividends or profits
that have been declared but not yet issued and that included in the actual payment or consideration, the cash
dividends or profits declared and distributed by the investee are recognized as investment income and included
in the current profits and losses.
If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost is less than the fair value share of the identifiable net assets of
the investee at the time of investment, the book value of the long-term equity investment shall be adjusted, and
the difference shall be included in the profit and loss of the current investment period.
In case of accounting by equity method, the investment income and other comprehensive income are
recognized respectively according to the share of net profits and losses and other comprehensive income
realized by the investee, and the book value of long-term equity investment is adjusted at the same time;
According to the profit or cash dividend declared and distributed by the investee, the part to be entitled to shall
be calculated, and the book value of long-term equity investment shall be reduced correspondingly; The
investee adjusts the book value of long-term equity investment for other changes in owner's equity except net
profits and losses, other comprehensive income and profit distribution and includes them in capital reserve
(other capital reserve). When recognizing the share of the net profit and loss of the investee, the fair value of
identifiable assets of the investee at the time of investment is taken as the basis, and the net profit of the investee
is recognized after adjustment according to the accounting policies and accounting periods of the Company.
If it can exert significant influence on the investee due to additional investment or implement joint control
but does not constitute control, on the conversion date, the sum of the fair value of the original equity plus the
new investment cost shall be taken as the initial investment cost calculated by the equity method instead. The
difference between the fair value and book value of the original equity on the conversion date, as well as the
accumulated fair value changes originally included in other comprehensive income, are transferred to the
current profits and losses accounted for by the equity method.
If the joint control or significant influence on the investee is lost due to the disposal of some equity
investments, the remaining equity after disposal shall be accounted for according to Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of Financial Instruments on the date of loss of joint
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
control or significant influence, and the difference between fair value and book value shall be included in the
current profits and losses. Other comprehensive income recognized by the original equity investment due to the
adoption of the equity method shall be accounted for on the same basis as the direct disposal of related assets or
liabilities by the investee when the equity method is terminated; Changes in other owners' equity related to the
original equity investment are transferred into current profits and losses.
If the control over the investee is lost due to the disposal of part of equity investment, and the remaining
equity after disposal can jointly control or exert significant influence on the investee, it shall be accounted for
according to the equity method instead, and the remaining equity shall be regarded as being adjusted by the
equity method when it is acquired; If the remaining equity after disposal cannot exercise joint control or exert
significant influence on the investee, it shall be accounted for according to the relevant provisions of
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments,
and the difference between its fair value and book value on the date of loss of control shall be included in the
current profits and losses.
If the Company's shareholding ratio decreases due to capital increase of other investors, causing loss of
control, but it can exercise joint control or exert significant influence on the investee, the share of net assets
increased by the investee due to capital increase and share expansion shall be recognized according to the new
shareholding ratio, and the difference between the original book value of long-term equity investment
corresponding to the decreased shareholding ratio shall be included in the current profits and losses; Then,
according to the new shareholding ratio, it is regarded as being adjusted by the equity method when the
investment is obtained.
For unrealized internal transaction gains and losses between the Company and its associated enterprises
and joint ventures, the portion attributable to the Company shall be calculated according to the shareholding
ratio, and investment gains and losses shall be recognized on the basis of offset. However, if the unrealized
internal transaction losses between the Company and the investee are the impairment losses of the transferred
assets, they will not be offset.
(3) Basis for determination of joint control and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement,
and the relevant activities of such arrangement must be unanimously agreed by the participants who share the
control rights before any decision is made. When judging whether there is common control, firstly, judge
whether all participants or a combination of participants collectively control the arrangement, and secondly,
judge whether the decision-making of activities related to the arrangement must be unanimously agreed by the
participants who collectively control the arrangement. If all participants or a group of participants must act in
concert to decide the relevant activities of an arrangement, it is considered that all participants or a group of
participants collectively control the arrangement; If two or more participants can collectively control an
arrangement, it does not constitute joint control. When judging whether it is joint control, the protective rights
entitled to are not considered.
Significant influence means that the investor has the right to participate in the decision-making on the
financial and operating policies of the investee, but cannot control or jointly control the formulation of these
policies with other parties. When determining whether it can exert significant influence on the investee, the
influence of the voting shares of the investee directly or indirectly held by the investor and the current
executable potential voting rights held by the investor and other parties shall be considered, including the
influence of the current convertible warrants, share options and convertible corporate bonds issued by the
investee.
When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
voting shares of the investee, it is generally considered to have a significant influence on the investee, unless
there is clear evidence that it cannot participate in the production and operation decisions of the investee under
such circumstances, in which case it does not have a significant influence; When the Company owns less than
20% (excluding) of the voting shares of the investee, it is generally not considered to have a significant
influence on the investee, unless there is clear evidence that it can participate in the production and operation
decisions of the investee under such circumstances, in which case it has a significant influence.
(4) Equity investment held for sale
If all or part of the equity investment in an associated enterprise or joint venture is classified as assets held
for sale, please refer to Note III. 13 for relevant accounting treatment.
For the remaining equity investments that are not classified as assets held for sale, the equity method is
adopted for accounting treatment.
If the equity investment in an associated enterprise or joint venture that has been classified as held for sale
no longer meets the classification conditions of assets held for sale, the equity method shall be used for
retrospective adjustment from the date that it is classified as assets held for sale.
(5) Test method for impairment and accrual method for impairment provision
For investment in subsidiaries, associated enterprises and joint ventures, please refer to Note III. 31 for the
accrual method for impairment provision.
23.Investment real estate
The measurement mode of investment property
The company shall adopt the cost mode to measure the investment property.
Depreciation or Amortization Method
Investment real estate refers to real estate held for rent or capital appreciation, or both. The Company's
investment real estate includes leased land use rights, land use rights transferred after holding and preparing for
appreciation, and leased buildings.
The Company's investment real estate is initially measured according to the cost at the time of acquisition,
and depreciation or amortization is accrued on schedule according to the relevant provisions of fixed assets or
intangible assets.
For investment real estate that is subsequently measured by cost model, please refer to Note III. 31 for the
accrual method of asset impairment.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deduction of its book value and related taxes shall be included in the current profits and losses.
24.Fixed assets
(1) Recognition conditions of fixed assets
The Company's fixed assets refer to tangible assets held for the production of commodities, provision of labor
services, leasing or operation and management, with a service life exceeding one fiscal year.
Only when the economic benefits related to the fixed assets are likely to flow into the enterprise and the cost of
the fixed assets can be measured reliably, can the fixed assets be recognized.
The fixed assets of the Company are initially measured according to the actual cost at the time of
acquisition.
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic
benefits related to them are likely to flow into the Company and the cost can be measured reliably; Daily repair
expenses of fixed assets that do not meet the requirements for subsequent expenditures of capitalization of fixed
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
assets are included in the current profits and losses or the cost of related assets according to the beneficiaries
when they occur. For the replaced part, the book value is derecognized.
(2) The method for depreciation
Expected useful Estimated
The method for depreciation Depreciation
life（Year） residual value
House and Building- Production Straight-line method 35 4 2.74
House and Building-Non- Production Straight-line method 40 4 2.40
Decoration of Fixed assets Straight-line method 10 10.00
Machinery and equipment Straight-line method 10-14 4 9.60-6.86
Transportation equipment Straight-line method 8 4 12.00
Electronic equipment Straight-line method 5 4 19.20
Other equipment Straight-line method 5 4 19.20
The company uses the life average method to calculate the depreciation. Depreciation of fixed assets starts from
reaching the predetermined usable state, ends of confirmation or divided into non-current assets for sale.
Among them, for the fixed assets that have been prepared for impairment, the accumulated amount of the fixed
assets shall be calculated to determine the depreciation rate.
At the end of each year, the Company reviews the service life, estimated net residual value and depreciation
method of the fixed assets.
If the service life estimate of fixed assets is different from the original estimate, the estimated service life of
fixed assets is adjusted; if the estimated net residual value is different.
Terminates recognition of the fixed asset when it is disposed of or is expected to yield no economic benefit
through use or disposal. The amount of disposal income from the sale, transfer, scrapping or destruction of fixed
assets excluding its book value and related taxes shall be included in the current profit and loss.
(3)Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when
they meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of the
leased assets shall be transferred to the Company.② The Company has the option right to purchase the leased
assets, and the concluded purchase price is expected to be far lower than the fair value of the leased assets when
exercising the option right. Therefore, the exercise of this option right by the Company can be determined
reasonably on the starting date of the lease.③ Even though the ownership of the assets is not transferred, the
lease term accounts for most of the service life of the leased assets.④ The present value of the minimum lease
payment of the Company on the lease start date is almost equal to the fair value of the leased assets on the lease
start date.⑤ In case of special properties of the leased assets and no large alteration, only the Company can use
them. Fixed assets leased by finance lease shall be recorded at the lower of the fair value of the leased assets on
the lease start date and the present value of the minimum lease payment. The minimum lease payment is taken
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
as the recorded value of long-term payables, and the difference is taken as unrecognized financing expenses.
Initial direct expenses such as handling fees, attorney fees, travel expenses, stamp duty, etc., which occur during
the lease negotiation and signing of the lease contract, are included in the value of the leased assets.
Unrecognized financing expenses are amortized by the effective interest rate method in each period of the lease
term.Fixed assets leased by financing shall be depreciated by adopting policies consistent with the self-owned
fixed assets. If it can be reasonably determined that the ownership of the leased asset will be acquired upon the
expiration of the lease term, depreciation shall be accrued within the serviceable life of the leased asset; If it is
impossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration of
the lease term, depreciation shall be accrued within the shorter of the lease term and the serviceable life of the
leased asset.
25.Construction in progress
The cost of construction in progress of the Company is determined according to the actual project
expenditure, including all necessary project expenditures incurred during the construction period, borrowing
costs that should be capitalized before the project reaches the intended usable state, and other related expenses.
Construction in progress is transferred to fixed assets when it reaches the scheduled usable state.
See Note V. 31 for the method of depreciation of assets in construction in progress.
26.Borrowing costs
(1) Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributed to the purchase, construction or
production of assets that meet the capitalization conditions, they will be capitalized and included in the relevant
asset costs; Other borrowing costs, when incurred, are recognized as expenses according to the amount incurred,
and included in current profits and losses. Borrowing costs shall be capitalized if they meet the following
conditions at the same time:
① Asset expenditure has already occurred, including the expenditure incurred in the form of payment in
cash, transfer of non-cash assets or assumption of interest-bearing debts for the purchase, construction or
production of assets that meet the capitalization conditions;
② Borrowing costs have already occurred;
③ The purchase, construction or production activities necessary to make the assets reach the intended
usable or saleable state have started.
(2) Capitalization period of borrowing costs
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization acquired,
constructed or produced by the Company reach the intended usable or saleable state. Borrowing costs incurred
after the assets in line with the capitalization conditions reach the intended usable or saleable state shall be
recognized as expenses according to the amount incurred when they occur, and shall be included in current
profits and losses.
If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase,
construction or production, and the interruption lasts exceeds 3 months, the capitalization of borrowing costs
shall be suspended; Borrowing costs during normal interruption period continue to be capitalized.
(3) Capitalization rate of borrowing costs and calculation method of capitalization amount
The interest expenses actually incurred in the current period of special borrowing shall be capitalized after
deducting the interest income from the unused borrowing funds deposited in the bank or the investment income
from temporary investment; The capitalization amount of general borrowings is determined by multiplying the
weighted average of the accumulated asset expenditure over the special loan by the capitalization rate of the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
occupied general borrowings. Capitalization rate is calculated and determined according to the weighted
average interest rate of general borrowings.
During the capitalization period, all the exchange differences of special borrowings in foreign currency are
capitalized; Exchange differences of general borrowings in foreign currency are included in current profits and
losses.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
(1) Conditions for recognizing the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets during
the lease term.
On the start date of the lease term, the right-to-use assets is initially measured at cost. The cost includes: the initial
measurement amount of lease liabilities; The lease payment amount issued on or before the start date of the lease
term, where if there is a lease incentive, the amount related to the entitled lease incentive shall be deducted; The
initial direct expenses incurred by the Company as the lessee; The cost expected to be incurred by the Company as
the lessee to dismantle and remove the leased assets, restore the site where the leased assets are located or restore
the leased assets to the state agreed in the lease terms. The Company, as the lessee, recognizes and measures the
demolition and restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-
Contingencies. Subsequent adjustments shall be made to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company, as the lessee, can
reasonably determine that the ownership of the leased assets is acquired at the expiration of the lease term,
depreciation shall be accrued within the remaining service life of the leased assets. If it cannot be reasonably
determined that the ownership of the leased assets can be obtained at the expiration of the lease term, depreciation
shall be accrued during the lease term or the remaining service life of the leased assets, whichever is shorter.
See Note VI.31 for the impairment test method of the right-to-use assets and the provision method for impairment.
30.Intangible assets
(1)The intangible assets of the Company include land use rights, proprietary technology and software.
Intangible assets are initially measured at cost, and their service life is analyzed and judged when they are
acquired. If the service life is limited, the intangible assets shall be amortized within the expected service life by
the amortization method that can reflect the expected realization mode of the economic benefits related to the
assets from the time when they are available for use; If it is impossible to reliably determine the expected
realization mode, they shall be amortized by straight-line method; Intangible asset\s with uncertain service life
are not amortized.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Amortization methods of intangible assets with limited service life are as follows:
Items Useful life（year） Amortization method Notes
Land use right 50 Straight
Special technoloogy 15 Straight
Software 5 Straight
At the end of each year, the Company rechecks the service life and amortization method of intangible
assets with limited service life, adjusts the original estimate if it is different from the previous estimate, and
handles the change according to the accounting estimate.
On the balance sheet date, if it is estimated that an intangible asset can no longer bring future economic
benefits to the enterprise, all the book value of the intangible asset will be transferred to the current profits and
losses.
（2）Accounting Policy of Internal Research and Development Expenditure
The Company divides the expenditure of internal research and development projects into expenditures in
research stage and expenditures in development stage.
Expenditures in research stage are included in current profits and losses when they occurs.
Expenditures in development stage can only be capitalized if they meet the following conditions: it is
technically feasible to complete the intangible assets so that they can be used or sold; There is the intention to
complete the intangible assets and use or sell them; The ways in which intangible assets generate economic
benefits, including those that can prove the existence of market for products produced by the intangible assets or
the existence of market for the intangible assets themselves, and that for the intangible assets that will be used
internally, their usefulness can be proved; There are sufficient technical, financial and other resources to
complete the development of the intangible assets and the ability to use or sell the intangible assets;
Expenditures attributable to the development stage of the intangible assets can be measured reliably.
Development expenditures that do not meet the above conditions are included in current profits and losses.
The research and development project of the Company will enter the development stage after the above
conditions are met and a project is approved through technical feasibility and economic feasibility study.
Capitalized expenditures in development stage are listed as development expenditures on the balance sheet,
and are converted into intangible assets from the date when the project reaches the intended purpose.
31.Long-term Assets Impairment
The asset impairment of long-term equity investment of subsidiaries, associated enterprises and joint
ventures, investment real estate, fixed assets, construction in progress, intangible assets, goodwill, etc. (except
inventory, investment real estate measured according to fair value model, deferred income tax assets and
financial assets) shall be determined according to the following methods:
On the balance sheet date, judge whether there is any sign of possible impairment of assets. If there is any
sign of impairment, the Company will estimate its recoverable amount and conduct impairment test. The
goodwill formed by business combination, intangible assets with uncertain service life and intangible assets that
have not yet reached the usable state are tested for impairment every year regardless of whether there is any
sign of impairment.
The recoverable amount is determined according to the higher of the net amount of the fair value of the
asset minus the disposal expenses and the present value of the estimated future cash flow of the asset. The
Company estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
recoverable amount of a single asset, the recoverable amount of the asset group shall be determined based on
the asset group to which the asset belongs. The identification of asset group is based on whether the main cash
inflow generated by asset group is independent of cash inflow of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company will
write down its book value to the recoverable amount, and the written-down amount will be included in the
current profits and losses, and the corresponding asset impairment provision will be accrued at the same time.
As far as the impairment test of goodwill is concerned, the book value of goodwill formed by business
combination is amortized to relevant asset groups according to a reasonable method from the acquisition date; If
it is difficult to amortize to the related asset group, it shall be amortized to the related asset group portfolio. The
related asset group or asset group portfolio is one that can benefit from the synergy effect of business
combination, and is not larger than the reporting segment determined by the Company.
In the impairment test, if there are signs of impairment in the asset group or asset group portfolio related to
goodwill, firstly, the asset group or asset group portfolio without goodwill shall be tested for impairment, the
recoverable amount shall be calculated, and the corresponding impairment loss shall be recognized. Then
impairment test shall be carried out on the asset group or asset group portfolio containing goodwill, and its book
value shall be compared with the recoverable amount. If the recoverable amount is lower than the book value,
the impairment loss of goodwill shall be recognized.
Once the asset impairment loss is recognized, it will not be reversed in future accounting periods.
32.Long-term deferred expenses
The long-term deferred expenses incurred by the Company are priced at actual cost and amortized equally
according to the expected benefit period. For long-term deferred expense items that cannot benefit future
accounting periods, all their amortized values are included in current profits and losses.
33.Contract liabilities
Contract liabilities refer to the obligation of the Company to transfer goods to customers for the received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company has
obtained the unconditional collection right before the Company transfers the goods to the customer, the Company
will list the received or receivable amount as the contract liability at the earlier of the actual payment made by the
customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net
amount, while contract assets and liabilities under different contracts are not offset.
34.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period when employees provide services, the Company recognizes the actual wages,
bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance
premiums and maternity insurance premiums paid for employees and housing provident funds as liabilities, and
includes them in current profits and losses or related asset costs. If the liability is not expected to be fully paid
within twelve months after the end of the annual reporting period when employees provide relevant services,
and the financial impact is significant, the liability will be measured at the discounted amount.
2. Accounting Treatment Method of Severance Benefit Plans
After-service benefit plan includes defined contribution plan and defined benefit plans. Where the set
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
deposit plan refers to the post-employment benefits plan in which the enterprise no longer undertakes further
payment obligations after paying fixed fees to independent funds; Set benefit plan refers to the post-
employment benefits plan except the set deposit plan.
Set deposit plan
The set deposit plan includes basic old-age insurance, unemployment insurance and enterprise annuity
plan, etc.
In addition to the basic old-age insurance, the Company establishes an enterprise annuity plan ("annuity
plan") according to the relevant policies of the national enterprise annuity system, and employees can
voluntarily participate in the annuity plan. Moreover, the Company has no other significant social security
commitments for employees.
During the accounting period when employees provide services, the amount that should be paid according
to the set deposit plan is recognized as a liability and included in the current profits and losses or related asset
costs.
Set benefit plan
For set benefit plans, an actuarial valuation is conducted by an independent actuary on the annual balance
sheet date, and the cost of benefit provision is determined by the expected cumulative benefit unit method. The
employee remuneration cost caused by set benefit plans of the Company includes the following components:
① Service cost, including current service cost, past service cost and settlement gain or loss. Where: the
current service cost refers to the increase of the present value of set benefit plan obligations caused by the
employees providing services in the current period; Past service cost refers to the increase or decrease of the
present value of set benefit plan obligations related to employee service in previous period caused by the
modification of set benefit plans.
② The net interest of set benefit plan's net liabilities or net assets, including interest income of planned
assets, interest expense of set benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of set benefit plans.
Unless other accounting standards require or allow employee benefit costs to be included in asset costs, the
Company will include the above items ① and ② in current profits and losses; Include item ③ in other
comprehensive income and such item will not be transferred back to profit or loss in the subsequent accounting
period. When the original set benefit plan is terminated, all the parts originally included in other comprehensive
income will be carried forward to undistributed profits within the scope of equity.
3. Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees, the employee remuneration liabilities arising
from the dismissal benefits shall be recognized and included in the current profits and losses on the earlier of
the following dates: When the Company cannot unilaterally withdraw the dismissal benefits provided by the
termination of labor relations plan or layoff proposal; When the Company recognizes the costs or expenses
related to the reorganization involving the payment of dismissal benefits.
If the employee's internal retirement plan is implemented, the economic compensation before the official
retirement date is the dismissal benefit. From the day when the employee stops providing services to the normal
retirement date, the wages of the retired employees and the social insurance premiums paid will be included in
the current profits and losses at one time. Economic compensation after the official retirement date (such as
normal pension) shall be treated as post-employment benefits.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits provided by the Company to employees meet the conditions for the
set deposit plan, they shall be handled in accordance with the above-mentioned relevant provisions on the set
deposit plan. If it meets the set benefit plans, it shall be handled in accordance with the above-mentioned
relevant regulations on set benefit plans, but the part of the related employee remuneration cost, which is "the
change caused by remeasurement of set benefit plan's net liabilities or net assets", shall be included in the
current profits and losses or related asset costs.
35.Lease liabilities
The company initially measures the lease liabilities according to the present value of the unpaid lease payments at
the beginning of the lease term. When calculating the present value of the lease payments, the company adopts the
interest rate included in the lease as the discount rate; If the interest rate included in the lease cannot be
determined, the company's incremental borrowing interest rate shall be adopted as the discount rate. Lease
payments include:
① The fixed payment amount and the actual fixed payment amount after deducting the relevant amount of lease
incentive;
② Variable lease payments based on indices or ratios;
③ If the company reasonably determines that the option will be exercised, the lease payment includes the exercise
price of the purchase option;
④ If the lease term reflects that the company will exercise the option to terminate the lease, the lease payment
includes the payment required to exercise the option to terminate the lease;
⑤ The amount expected to be paid according to the guaranteed residual value provided by the company.
The company calculates the interest expense of the lease liability in each period of the lease term according to the
fixed discount rate, and records it into the current profit and loss or relevant asset cost.
The amount of variable lease payments not included in the measurement of lease liabilities shall be included in the
current profits and losses or relevant asset costs when actually incurred.
36. Estimated Liabilities
If the obligation related to contingencies meets the following conditions at the same time, the Company
will recognize it as estimated liabilities:
(1) Such obligation is the current obligation undertaken by the Company;
(2) The performance of such obligation is likely to lead to the outflow of economic benefits from the
Company;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations, and factors such as risks, uncertainties and time value of money related to
contingencies are comprehensively considered. If the time value of money has great influence, the best estimate
is determined by discounting the related future cash outflow. The Company rechecks the book value of the
estimated liabilities on the balance sheet date, and adjusts the book value to reflect the current best estimate.
If all or part of the expenses required to pay off the recognized estimated liabilities are expected to be
compensated by a third party or other parties, the compensation amount can only be recognized as an asset
when it is basically confirmed that it can be received. The recognized compensation amount shall not exceed the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
book value of the recognized liabilities.
37. Share payment
(1) Types of share-based payment
The share-based payment of the Company is divided into equity-settled share-based payment and cash-
settled share-based payment.
(2) Method for determining fair value of equity instruments
The fair value of equity instruments such as options granted by the Company with active market is
determined according to the quoted price in the active market. The fair value of granted equity instruments such
as options without active market is determined by option pricing model. The selected option pricing model
considers the following factors: A. The exercise price of options; B. The validity period of the option; C. The
current price of the underlying shares; D. Estimated volatility of share price; E. Expected dividend of shares; F.
Risk-free interest rate within the validity period of the option.
(3) Basis for determining the best estimation of feasible equity instruments
On each balance sheet date during the waiting period, the Company makes the best estimate based on the
latest available follow-up information such as changes in the number of employees with feasible rights, and
revises the estimated number of equity instruments with feasible rights. On the vesting date, the final estimated
number of vesting rights and interests instruments shall be consistent with the actual number of vesting rights.
(4) Accounting treatment related to implementation, modification and termination of share-based payment
plan
Equity-settled share-based payment is measured at the fair value of equity instruments granted to
employees. If the right is exercised immediately after the grant, the relevant costs or expenses shall be included
in the fair value of equity instruments on the grant date, and the capital reserve shall be increased accordingly. If
the rights can be exercised only after the services within the waiting period are completed or the specified
performance conditions are met, on each balance sheet date within the waiting period, based on the best
estimate of the number of equity instruments available, the services obtained in the current period shall be
included in the relevant costs or expenses and capital reserve according to the fair value on the grant date of
equity instruments. After the vesting date, the recognized related costs or expenses and the total owner's equity
will not be adjusted.
Equity-settled share-based payment shall be measured according to the fair value of liabilities calculated
and determined on the basis of shares or other equity instruments undertaken by the Company. If the right is
exercised immediately after the grant, the fair value of the liabilities assumed by the Company shall be included
in the relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly. For cash-
settled share-based payment that is feasible only after the service within the waiting period is completed or the
specified performance conditions are met, on each balance sheet date within the waiting period, based on the
best estimation of the feasibility and according to the fair value of the liabilities assumed by the Company, the
services obtained in the current period are included in the costs or expenses and corresponding liabilities. On
each balance sheet date and settlement date before the settlement of related liabilities, the fair value of liabilities
shall be re-measured, and the changes shall be included in the current profits and losses.
When the Company modifies the share-based payment plan, if the fair value of the granted equity
instruments is increased by modification, the increase of the services obtained shall be recognized according to
the increase of the fair value of the equity instruments; If the number of granted equity instruments is increased
by modification, the fair value of the increased equity instruments will be recognized as the increase in services
obtained accordingly. The increase of fair value of equity instruments refers to the difference between the fair
44
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
values of equity instruments before and after modification on the modification date. If the total fair value of
share-based payment is reduced by modification or the terms and conditions of the share-based payment plan
are modified in other ways that are unfavorable to employees, the accounting treatment of the obtained services
will continue, as if with no changes unless the Company cancels some or all of the granted equity instruments.
During the waiting period, if the granted equity instruments are cancelled (except those cancelled due to
non-market conditions that do not meet the feasible rights conditions), the Company will treat the cancellation
of the granted equity instruments as an accelerated exercise, and immediately record the amount to be
recognized in the remaining waiting period into the current profits and losses, and recognize the capital reserve
at the same time. If the employee or other party can choose to meet the non-feasible right condition but fails to
meet it during the waiting period, the Company will treat it as a cancellation for granting equity instruments.
38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Revenue
Accounting policies adopted for income recognition and measurement
(1) General principles
The Company has fulfilled the performance obligation in the contract, that is, to recognize the revenue
when the customer obtains the control right of related goods or services.
If the contract contains two or more performance obligations, the Company will amortize the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods or services promised by each individual performance obligation on the contract start date, and
measure the income according to the transaction price amortized to each individual performance obligation.
When one of the following conditions is met, the Company will fulfill its performance obligations within a
certain period of time; Otherwise, it performs the performance obligation at a certain time:
① The customer obtains and consumes the economic benefits brought by the Company's performance at
the same time of the its performance.
② Customers can control the goods under construction during the performance of the Company.
③ The commodities produced during the performance of the Company have irreplaceable uses, and the
Company has the right to collect payment for the performance part accumulated so far during the whole
contract period.
For the performance obligations performed within a certain period of time, the Company recognizes the
income according to the performance progress within that period. If the performance progress cannot be
reasonably determined, and the cost incurred of the Company is expected to be compensated, the income shall
be recognized according to the amount of the cost incurred until the performance progress can be reasonably
determined.
For obligations performed at a certain time, the Company shall recognize the income at the time when the
customer obtains control of the relevant goods or services. When judging whether a customer has obtained
control of goods or services, the Company will consider the following signs:
① The Company has the current right to receive payment for the goods or services, that is, the customer
has the current payment obligation for the goods or services.
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has
the legal ownership of the goods.
45
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
③ The Company has transferred the physical goods to the customer, that is, the customer has physically
taken possession of the goods.
④ The Company has transferred the main risks and rewards on the ownership of the goods to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the goods.
⑤ The customer has accepted the goods.
⑥ Other signs that the customer has obtained control of the goods.
The Company has transferred goods or services to customers and has the right to receive consideration
(and the right depends on other factors except the passage of time) as contract assets, and the contract assets are
depreciated on the basis of expected credit losses. The right of the Company to collect consideration from
customers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of the
Company to transfer goods or services to customers for received or receivable consideration from customers
shall be regarded as a contractual liability.
Contract assets and contract liabilities under the same contract are listed in net amount. If the net amount is
debit balance, they are listed in "Contract Assets" or "Other Non-current Assets" according to their liquidity; If
the net amount is the credit balance, it shall be listed in "Contract Liabilities" or "Other Non-current Liabilities"
according to its liquidity.
(2) Specific method
The specific method of revenue recognition of the Company is as follows:
Polarizer/Textile and garment sales contract:
Domestic sales: When the goods are delivered to the customer and the customer has accepted the goods,
the customer obtains the control of the goods, and the Company recognizes the revenue.
Export: A. When the customer receives goods in China, the revenue recognition is the same as "Revenue
Recognition for Domestic Sales"; B. When the delivery place of customer is outside the country, the Company
mainly adopts FOB. When the goods are delivered from the warehouse and have been exported for customs
declaration, the Company recognizes the revenue.
Revenue from property/accommodation services:
In the process of property/accommodation service provision, the Company recognizes revenue by stages.
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
None
40.Government subsidy
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.
Government subsidies for monetary assets shall be measured according to the amount received or
receivable. Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be
obtained reliably, it shall be measured according to the nominal amount RMB 1.
Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; In addition, as a government subsidy related
to income.
Where the government documents do not specify the object of the subsidy, and the subsidy can form long-
term assets, the part of the government subsidies corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets, and the rest shall be regarded as the government subsidies related
46
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
to the income; where it is difficult to be distinguished, government subsidies as a whole are treated as income-
related government subsidies.
Government subsidies related to assets offset the book value of related assets, or are recognized as deferred
income and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income, which are used to compensate related
costs or losses that have occurred, are included in current profits and losses or offset related costs; If used to
compensate related costs or losses in later periods, they will be included in the deferred income, and included in
the current profits and losses or offset related costs during the recognition period of related costs or losses.
Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.
Government subsidies related to daily activities are included in other income or offset related costs
according to the nature of economic business. Government subsidies irrelevant to routine activities shall be
included into the non-operating receipt and disbursement.
When the recognized government subsidy needs to be returned, if the book value of related assets is offset
during initial recognition, the book value of assets will be adjusted; If there is a relevant deferred income
balance, the book balance of the relevant deferred income will be offset, and the excess will be included in the
current profits and losses; In other cases, it is directly included in the current profits and losses.
For the discount interest of preferential policy loans, if the finance allocates the discount interest funds to
the lending bank, the actually received loan amount is taken as the recorded value of the loan, and the
borrowing costs are calculated according to the loan principal and preferential policy interest rate. If the finance
directly allocates the discount interest funds to the Company, the discount interest will offset the borrowing
costs.
41.The Deferred Tax Assets / The deferred Tax Liabilities
Income tax includes current income tax and deferred income tax. Except for adjusted goodwill arising from
business combination or deferred income tax related to transactions or matters directly included in owner's
equity, they are all included in current profits and losses as income tax expenses.
According to the temporary difference between the book value of assets and liabilities and the tax basis on
the balance sheet date, the Company adopts the balance sheet liability method to confirm deferred income tax.
All taxable temporary differences are recognized as related deferred income tax liabilities, unless the
taxable temporary differences are generated in the following transactions:
(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from transactions
with the following characteristics: the transaction is not a business combination, and the transaction does not
affect accounting profits or taxable income when it occurs;
(2) For taxable temporary differences related to investments of subsidiaries, joint ventures and associated
enterprises, the time for the temporary differences to be reversed can be controlled and the temporary
differences will probably not be reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax deductions that can be carried forward to
later years, the Company shall recognize the deferred income tax assets arising there from to the extent that it is
likely to obtain the future taxable income used to offset the deductible temporary differences, deductible losses
and tax deductions, unless the deductible temporary differences are generated in the following transactions:
(1) The transaction is not a business combination, and it does not affect accounting profit or taxable
income when the transaction occurs;
(2) For deductible temporary differences related to investments of subsidiaries, joint ventures and
47
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
associated enterprises, corresponding deferred income tax assets are recognized if the following conditions are
met at the same time: temporary differences are likely to be reversed in the foreseeable future, and taxable
income used to offset the deductible temporary differences is likely to be obtained in the future.
On the balance sheet date, the Company measures deferred income tax assets and deferred income tax
liabilities according to the applicable tax rate during the expected period of recovering the assets or paying off
the liabilities, and reflects the income tax impact of the expected way of recovering the assets or paying off the
liabilities on the balance sheet date.
On the balance sheet date, the Company rechecks the book value of deferred income tax assets. If it is
unlikely that sufficient taxable income will be obtained in the future period to offset the benefits of deferred
income tax assets, the book value of deferred income tax assets will be written down. When sufficient taxable
income is likely to be obtained, the written-down amount shall be reversed.
42.Lease
（1）Accounting of operational leasing
(1) Identification of lease
On the contract start date, the lessor-the Company evaluates whether the customer in the contract is entitled
to almost all the economic benefits arising from the use of the identified asset during the period of use, and has
the right to direct the use of the identified asset during the period of use. Where a party in the contract transfers
the right to control the use of one or more identified assets within a certain period in exchange for consideration,
the Company determines that the contract is a lease or contains a lease.
(2) The Company as the lessee
On the commencement date of the lease term, the Company recognizes right-of-use assets and lease
liabilities for all leases, except for simplified short-term leases and leases of low-value assets.
For the accounting policies of right-of-use assets, please refer to this section V. Significant accounting
policies and accounting estimates 29. Right-of-use assets.
The lease liability is initially measured at the present value of the unpaid lease payments on the lease
commencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rate
implicit in the lease cannot be determined, the incremental borrowing rate is used as the discount rate. Lease
payments include: fixed payments and in-substance fixed payments, deducting the relevant amount of the lease
incentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exercise
price of a purchase option, provided that the lessee is reasonably determine that the option will be exercised; the
amount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteed
residual value provided by the lessee. Subsequently, the interest expense of the lease liability in each period of
the lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current profit and
loss when they are actually incurred
Short-term leases
Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of the
lease term, except leases that include a purchase option.
The lessor will include the lease payments for short-term leases in the cost of relevant assets or current
profits and losses on a straight-line basis during each period of the lease term.
Lease of low value asset
48
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Low-value asset leases refer to leases with a value of less than 40,000 yuan when a single leased asset is a
brand-new asset.
For the lease of low-value assets, the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.
The lease payments for the value asset lease of the Company shall be included in the cost of the relevant
assets or the current profit and loss on a straight-line basis in each period of the lease term.
For the lease of low-value assets, the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.
Lease change
Where the lease changes and the following conditions are met at the same time, the Company will make
account treatment for the lease change as a separate lease: ① The lease change expands the scope of the lease
by adding the right to use one or more leased assets; ②The increased consideration is equivalent to the amount
adjusted by the individual price of the expanded part of the lease scope according to the contract situation after
change.
Where the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Company re-allocates the consideration of the contract after the change, re-determines the lease term, and
re-measures the lease liability according to the lease payment after the change and the present valuecalculated
bythe revised discount rate.
Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term, the
Company will reduce the book value of the right-of-use asset accordingly, and include the relevant gains or
losses on partial or complete termination of the lease into the current profit and loss.
If other lease changes result in re-measurement of lease liabilities, the Company adjusts the book value of
the right-of-use asset accordingly.
(3) The Company as the lessor
When the Company acts as a lessor, a lease that substantially transfers all risks and rewards related to asset
ownership is recognized as a financial lease, and other leases other than financial leases are recognized as
operating leases.
Financial lease
In the financial lease, at the beginning of the lease term, the Company takes the net investment in the lease
as the entry value of the finance lease receivables, and the net investment in the lease is thesum ofthe
unguaranteed residual value and the present value of the lease receipts that have not been received on the start
date of the lease term after calculated according to the discounted interest rate implicit in the lease. The
Company, as the lessor, calculates and recognizes the interest income in each period of the lease period
according to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessor
that are not included in the net lease investment measurement are included in the current profit and loss when
actually incurred.
The derecognition and impairment of financial lease receivables shall be accounted for in accordance with
the provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement of
Financial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.
For rents under operating leases, the Company recognizes the current profits and losses on a straight-line
basis in each period of the lease term. The initial direct expenses incurred in relation to operating leases shall be
capitalized and amortized on the same basis as rental income recognition during the lease term, and then
included in the current profit and loss in installments. The variable lease payments obtained in relation to
49
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
operating leases but not included in the lease receipts are included in the current profit and loss when actually
incurred.
Where the operating lease is changed, the Company will treat it as a new lease from the effective date of the
change, and the advance receipts or lease receivables related to the lease before the change are regarded as the
receipts of the new lease.
2. Accounting Treatment Method of Finance Lease
(1) Identification of lease
On the contract start date, the lessor-the Company evaluates whether the customer in the contract is entitled
to almost all the economic benefits arising from the use of the identified asset during the period of use, and has
the right to direct the use of the identified asset during the period of use. Where a party in the contract transfers
the right to control the use of one or more identified assets within a certain period in exchange for consideration,
the Company determines that the contract is a lease or contains a lease.
(2) The Company as the lessee
On the commencement date of the lease term, the Company recognizes right-of-use assets and lease
liabilities for all leases, except for simplified short-term leases and leases of low-value assets.
For the accounting policies of right-of-use assets, please refer to this section V. Significant accounting
policies and accounting estimates 29. Right-of-use assets.
The lease liability is initially measured at the present value of the unpaid lease payments on the lease
commencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rate
implicit in the lease cannot be determined, the incremental borrowing rate is used as the discount rate. Lease
payments include: fixed payments and in-substance fixed payments, deducting the relevant amount of the lease
incentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exercise
price of a purchase option, provided that the lessee is reasonably determine that the option will be exercised; the
amount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteed
residual value provided by the lessee. Subsequently, the interest expense of the lease liability in each period of
the lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current profit and
loss when they are actually incurred
Short-term leases
Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of the
lease term, except leases that include a purchase option.
The lessor will include the lease payments for short-term leases in the cost of relevant assets or current
profits and losses on a straight-line basis during each period of the lease term.
Lease of low value asset
Low-value asset leases refer to leases with a value of less than 40,000 yuan when a single leased asset is a
brand-new asset.
For the lease of low-value asset, the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.
The lease payments for the value asset lease of the Company shall be included in the cost of the relevant
assets or the current profit and loss on a straight-line basis in each period of the lease term.
For the lease of low-value assets, the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.
50
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Lease change
Where the lease changes and the following conditions are met at the same time, the Company will make
account treatment for the lease change as a separate lease: ① The lease change expands the scope of the lease
by adding the right to use one or more leased assets; ②The increased consideration is equivalent to the amount
adjusted by the individual price of the expanded part of the lease scope according to the contract situation after
change.
Where the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Company re-allocates the consideration of the contract after the change, re-determines the lease term, and
re-measures the lease liability according to the lease payment after the change and the present value calculated
by the revised discount rate.
Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term, the
Company will reduce the book value of the right-of-use asset accordingly, and include the relevant gains or
losses on partial or complete termination of the lease into the current profit and loss.
If other lease changes result in re-measurement of lease liabilities, the Company adjusts the book value of
the right-of-use asset accordingly.
(3) The Company as the lessor
When the Company acts as a lessor, a lease that substantially transfers all risks and rewards related to asset
ownership is recognized as a financial lease, and other leases other than financial leases are recognized as
operating leases.
In the financial lease, at the beginning of the lease term, the Company takes the net investment in the lease
as the entry value of the finance lease receivables, and the net investment in the lease is thesum of the
unguaranteed residual value and the present value of the lease receipts that have not been received on the start
date of the lease term after calculated according to the discounted interest rate implicit in the lease. The
Company, as the lessor, calculates and recognizes the interest income in each period of the lease period
according to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessor
that are not included in the net lease investment measurement are included in the current profit and loss when
actually incurred.
The derecognition and impairment of financial lease receivables shall be accounted for in accordance with
the provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement of
Financial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.
Where the financial lease is changed and the following conditions are met at the same time, the Company
will make account treatment for the lease change as a separate lease: ① The lease change expands the scope of
the lease by adding the right to use one or more leased assets; ②The increased consideration is equivalent to the
amount adjusted by the individual price of the expanded part of the lease scope according to the contract
situation after change..
Where the change of the financial lease is not accounted for as a separate lease, the Company shall treat the
changed lease according to the following circumstances: ①where the lease is classified as an operating lease
when the change takes effect on the lease start date, the Company shall account for the lease change as a new
lease from the effective date, and the net investment in the lease before the effective date of the lease change is
used as the book value of the lease asset; ②where the lease is classified as a financial lease when the change
51
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
takes effect on the lease start date, the Company shall conduct accounting treatment in accordance with the
regulation of revising or renegotiating contracts by" No. 22Accounting Standards for Business Enterprises-
Recognition and Measurement of Financial Instruments".
43. Other important accounting policies and accounting estimates
(1)Change of main accounting policies
Accounting policy changes caused by implementation of new financial instrument standards
（2） Changes in accounting estimates
No significant changes in accounting estimates have occurred in the current period.
44.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
The content and reason for change of accounting Approval
Start applicable Remarks
Estimations process
Due to the frequent use of the Company's electronic and For details, please refer to the
other equipment and rapid update in actual use, resulting Announcement on Changes of
Resolution of
in their actual service life lower than the current Accounting Estimates of
the ninth
depreciation period, the depreciation period of electronic Depreciation Period of Some
meeting of the January 1,2022 Fixed Assets (No.2021-63)
and other equipment is changed to make the depreciation
eighth Board disclosed by the Company on
period of assets closer to the service life of assets, in
of Director CNINF on January 1, 2022.
order to meet the needs of the Company's business
development and fixed asset management.
45.Other
None
VI. Taxation
1. Main categories and rates of taxes
Taxes Tax references Applicable tax rates
VAT The taxable turnover 13%,6%,5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%,20%,16.5%,15%
Education surcharge Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
Name of taxpayer Income tax rates
Shenzhen Textile (Holdings) Co., Ltd 25%
SAPO Photoelectric Co., Ltd. 15%
52
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Shenzhen Lisi Industrial Co., Ltd. 20%
Shenfang Property Management Co., Ltd. 20%
Shenzhen Huaqiang Hotel 20%
Shenzhen Beauty Century Garment Co., Ltd. 20%
Shenzhen Shenfang Sungang Property Management Co.,Ltd. 20%
Shengtou （HK）Co., Ltd. 16.5%
Shenzhen Shengjinlian Technology Co., Ltd. 25%
2. Tax preference
.In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of Cu
stoms and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Develop
ment of New-type Display Device Industry (Cai Guan Shui (2021) No. 19),The Company manufactured key
materials and parts for the upstream industry of new-type display devices including colorful light filter coating
and polarizer
sheet that comply with the planning for independent development of domestic industries may enjoy the preferen
tial policies of exemption from import tariff for the import of raw materials and consumables for the purpose of
self use and production that can not be produced domestically from January 1, 2021 and December 31, 2030. Th
e above preferential tax policies apply to the subsidiaries of the Company, SAPO Photoelectric Co., Ltd.
According to the relevant regulations of the Administrative Measures for the Accreditation of High-tech
Enterprises (GKFH No.32 [2016]) and the Guidelines for Accreditation Administration of High-tech
Enterprises (GKFH No.195 [2016]), the qualification of an accredited high-tech enterprise is valid for 3 years
from the issuing date of the certificate. After obtaining the qualification of high-tech enterprise, the enterprise is
entitled to the preferential enterprise income tax at a rate of 15% from the year when the certificate of high-tech
enterprise is issued. Shenzhen SAPO Photoelectric Technology Co., Ltd., a subsidiary of the Company, was
recognized as a national high-tech enterprise in 2019, with a certificate number GR201944205666, valid for 3
years, and paid enterprise income tax at a rate of 15%.
According to the Announcement of the Ministry of Finance and the State Taxation Administration on
Implementing the Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial
and Commercial Households (Announcement No.12 of the Ministry of Finance and the State Administration of
Taxation in 2021) and the Announcement of State Taxation Administration on Implementing the Relevant
Matters of Income Tax Preferential Policies in Support of Development of Small and Micro Profit Enterprises
and Individual Industrial and Commercial Households (Announcement No.8 of State Taxation Administration
in 2021), from January 1, 2021 to December 31, 2022, for the small low-profit enterprises, if the annual taxable
income does not exceed RMB 1 million, the taxable income shall be calculated at a rate of 12.5%, and the
enterprise income tax is paid at a rate of 20%; if the annual taxable income exceeds RMB 1 million but less than
RMB 3 million, the taxable income shall be calculated at a rate of 50%, and the enterprise income tax will be
paid at a rate of 20%". The above preferential tax policies apply to the subsidiaries of the Company, Shenzhen
Beauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Co., Ltd., Shenzhen Lisi Industrial Development
Co., Ltd., Shenzhen Shenfang Sungang Property Management Co., Ltd. and Shenzhen Shenfang Property
Management Co., Ltd.
3.Other
None
53
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 6,238.09 792.64
Bank deposit 348,654,742.86 302,472,035.96
Other monetary funds 7,940,013.85 0.00
Total 356,600,994.80 302,472,828.60
Including : The total amount of deposit abroad 6,315,269.67 6,009,898.07
Total amount of money limited to use, such as mortgage, pledge or
7,940,013.85 0.00
freeze
Other note
The total amount of restricted funds at the end of the period is 7940013.85 yuan, which is the security deposit of
the subsidiary.
2. Transactional financial assets
In RMB
Items Year-end balance Year-beginning balance
financial assets measured at their fair
values and with the variation included in 609,244,744.72 586,540,735.16
the current profits and losses
Including：
Structure deposit 350,156,027.40 0.00
Monetary fund 178,828,114.58 586,540,735.16
Bank wealth management product 80,260,602.74 0.00
Including：
Total 609,244,744.72 586,540,735.16
Other note
Note
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Year-end balance Year-beginning balance
.Bank acceptance Bill 22,329,172.88 76,931,731.52
Commercial acceptance 14,791,860.30 73,011,148.76
Total 37,121,033.18 149,942,880.28
54
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Propor value
on(%) on(%) on(%)
tion(%)
Of
which：
Accrual
of bad
debt 37,194,9 73,959.3 37,121,0 150,307, 365,055. 149,942,
100.00% 0.20% 100.00% 0.24%
provisio 92.48 0 33.18 936.02 74 880.28
n by
portfolio
Includ
ing：
Commer
cial 14,791,8 73,959.3 14,717,9 73,011,1 365,055. 72,646,0
39.77% 0.50% 48.57% 0.50%
acceptan 60.30 0 01.00 48.76 74 93.02
ce
.Bank
22,403,1 22,403,1 77,296,7 77,296,7
acceptan 60.23% 51.43% 0.00 0.00%
32.18 32.18 87.26 87.26
ce Bill
37,194,9 73,959.3 37,121,0 150,307, 365,055. 149,942,
Total 100.00% 0.20% 100.00% 0.24%
92.48 0 33.18 936.02 74 880.28
Accrual of bad debt provision by portfolio:
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Commercial acceptance 14,791,860.30 73,959.30 0.50%
Total 14,791,860.30 73,959.30
Description of determining the combination basis: it is divided into bank acceptance bills and commercial
acceptance bills according to the subject of bill acceptance.
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Commercial
365,055.74 291,096.44 73,959.30
acceptance
Total 365,055.74 291,096.44 73,959.30
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
55
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（3）The current accounts receivable write-offs situation
□ Applicable √ Not applicable
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and not
expired yet on the date of balance sheet
In RMB
Amount derecognized at the end of the Amount not yet derecognized at the end
Items
period of the period
Bank acceptance bill 15,495,198.50 51,434,865.61
Total 15,495,198.50 51,434,865.61
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
None
（6） The actual write-off accounts receivable
None
Note of the write-off the accounts receivable:
None
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Categor Book balance Bad debt provision Book balance Bad debt provision
Book Book
y Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt
13,364,3 13,364,3 13,260,3 13,260,3
provisio 1.78% 100.00% 0.00 2.57% 100.00% 0.00
n by 81.94 81.94 07.34 07.34
single
item
Includin
g：
Accrual
of bad
debt 736,823, 32,973,9 703,849, 502,848, 22,849,8 479,998,
98.22% 4.48% 97.43% 4.54%
provisio 980.57 97.24 983.33 549.97 41.40 708.57
n by
portfolio
Includin
g：
750,188, 46,338,3 703,849, 516,108, 36,110,1 479,998,
Total 100.00% 6.18% 100.00% 7.00%
362.51 79.18 983.33 857.31 48.74 708.57
56
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Accrual of bad debt provision by single item: 13,364,381.94
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Dongguan Yaxing Beyond the credit
Semiconductor Co., 2,797,016.81 2,797,016.81 100.00% period for a long time,
Ltd. uncertain recovered.
Beyond the credit
Dongguan Fair LCD
1,695,543.72 1,695,543.72 100.00% period for a long time,
Co., Ltd. uncertain recovered.
Guangdong Ruili Beyond the credit
Baolai Technology Co., 1,298,965.36 1,298,965.36 100.00% period for a long time,
Ltd. uncertain recovered.
Huangshan Beyond the credit
Zhongxianwei Electric 902,031.00 902,031.00 100.00% period for a long time,
Co., Ltd. uncertain recovered.
Shenzhen Gulida Beyond the credit
Microelectronics Co., 522,737.52 522,737.52 100.00% period for a long time,
Ltd. uncertain recovered.
Beyond the credit
Dongguan Jiaxian
486,510.50 486,510.50 100.00% period for a long time,
Electric Co., Ltd. uncertain recovered.
Shenzhen Gulida Beyond the credit
Microelectronics Co., 457,982.42 457,982.42 100.00% period for a long time,
Ltd. uncertain recovered.
Beyond the credit
Jilin Lianxin Optics
443,768.72 443,768.72 100.00% period for a long time,
Technology Co., Ltd. uncertain recovered.
Beyond the credit
Other 4,759,825.89 4,759,825.89 100.00% period for a long time,
uncertain recovered.
Total 13,364,381.94 13,364,381.94
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 736,823,978.43 32,973,997.14 4.48%
1-2 years 2.14 0.10 4.67%
Total 736,823,980.57 32,973,997.24
Note：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 736,823,978.43
1-2 years 2.14
2-3 years 688,258.26
Over 3 years 12,676,123.68
3-4 years 0.00
4-5 years 0.00
Over 5 years 12,676,123.68
57
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Total 750,188,362.51
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision: withdrawing bad debt by aging combination
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt
22,849,841.40 10,124,155.84 32,973,997.24
provision by portfolio:
Accrual of bad debt
13,260,307.34 104,074.60 13,364,381.94
provision by single item:
Total 36,110,148.74 10,228,230.44 0.00 0.00 0.00 46,338,379.18
Of which the significant amount of the reversed or collected part during the reporting period :None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Balance in year-end Proportion(%) Bad debt provision
First 114,723,319.70 32.69% 5,196,966.39
Second 66,342,120.65 18.90% 3,005,298.07
Third 61,440,509.51 17.51% 2,783,255.08
Fourth 54,597,543.80 15.56% 2,473,268.73
Fifth 53,847,453.65 15.34% 2,439,289.65
Total 350,950,947.31 100.00%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
6.Receivable financing
In RMB
Items Closing balance Opening balance
Note receivable 51,434,865.61 21,474,101.07
Total 51,434,865.61 21,474,101.07
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
58
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Other note
Some subsidiaries of the Company discount and endorse some bank acceptance bills according to the
needs of their daily fund management, therefore the bank acceptance bills of the subsidiaries are classified as
financial assets measured at fair value with changes included in other comprehensive income.
There is no single bank acceptance bill with impairment provision of the Company. On June 30, 2022, the
Company considered that there was no significant credit risk in the bank acceptance bills held by it, and there
would be no significant loss due to bank default.
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 70,367,096.83 100.00% 15,157,623.27 98.38%
1-2 years 248,996.26 1.62%
Total 70,367,096.83 15,406,619.53
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
On June 30, 2022, there was no large prepayment with an accounting age of more than one year in the balance of
prepayment .
（2）The ending balance of Prepayments owed by the imputation of the top five parties
The top five ending balances of prepayments collected according to prepaid objects totaled RMB
36,080,705.39, accounting for 51.27 % of the total closing balances of prepayments
Other note：None
8.Other receivable
In RMB
Items Closing balance Opening balance
Interest receivable 85,062.56
Other accounts receivable 7,150,812.66 140,185,750.40
Total 7,235,875.22 140,185,750.40
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Agreement deposit 85,062.56 0.00
Total 85,062.56
2) Significant overdue interest
None
59
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant overdue dividend
None
3）Bad debt provision
□ Applicable √ Not applicable
（3）Other account receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 2,016,693.94 144,954,822.31
Unit account 19,554,763.66 16,402,902.33
Export rebate 1,086,980.29 1,698,919.82
Reserve fund and staff loans 912,140.57 293,128.97
Other 1,626,865.99 1,834,489.23
Total 25,197,444.45 165,184,262.66
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1, 2022 7,795,257.07 17,203,255.19 24,998,512.26
Balance as at January 1, 2022in
current
Provision in the current period 1,725.66 1,725.66
Recovered or reversed in the
6,953,606.13 6,953,606.13
current period
Balance as at June 30,2022 841,650.94 17,204,980.85 18,046,631.79
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
60
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Within 1 year(Including 1 year） 283,876.14
1-2 years 1,580,026.94
2-3 years 6,530,019.52
Over 3 years 16,803,521.85
3-4 years 2,603,910.57
4-5 years 6,111,697.83
Over 5 years 8,087,913.45
Total 25,197,444.45
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt
17,203,255.19 1,725.66 17,204,980.85
provision by single item
Accrual of bad debt
7,795,257.07 6,953,606.13 841,650.94
provision by portfolio
Total 24,998,512.26 6,951,880.47 18,046,631.79
Where the current bad debts back or recover significant amounts:None
(4) Other account receivables actually cancel after write-off
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
First Unit account 11,389,044.60 Over 5 years 45.56% 11,389,044.60
Within 1 year
Second Unit account 2,704,118.27 10.82% 135,205.91
（Including 1 year）
Third Unit account 1,800,000.00 Over 5 years 7.20% 1,800,000.00
Fourth Unit account 1,018,295.37 2-3 years 4.07% 1,018,295.37
Fifth Unit account 980,461.06 Over 5 years 3.92% 980,461.06
Total 17,891,919.30 71.57% 15,323,006.94
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
61
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items inventory inventory
Book balance Book value Book balance Book value
impairment impairment
Raw materials 409,450,402.32 26,217,791.21 383,232,611.11 349,978,870.87 26,335,509.94 323,643,360.93
Processing
14,679,510.26 0.00 14,679,510.26 10,992,072.59 0.00 10,992,072.59
products
Goods in transit 19,183,144.40 0.00 19,183,144.40 7,910,629.62 30,573.89 7,880,055.73
Finished
106,099,803.84 34,543,448.90 71,556,354.94 118,034,342.61 36,750,396.02 81,283,946.59
product
Semi-finished 342,800,480.80 52,630,818.01 290,169,662.79 270,743,032.26 34,298,745.28 236,444,286.98
Commissioned
2,700,898.03 117,333.43 2,583,564.60 7,838,404.74 620,680.53 7,217,724.21
materials
Total 894,914,239.65 113,509,391.55 781,404,848.10 765,497,352.69 98,035,905.66 667,461,447.03
（2）Inventory falling price reserves and reserves for impairment of contract performance costs
In RMB
Increased in current period Decreased in current period
Reverse
Items Opening balance d or Closing balance
Accrual collecte Write-off Other
d
amount
Raw materials 26,335,509.94 117,718.73 26,217,791.21
Processing
0.00 0.00
products
Finished
36,750,396.02 10,516,916.94 12,723,864.06 34,543,448.90
product
Semi-finished 34,298,745.28 32,208,394.99 13,876,322.26 52,630,818.01
Goods in transit 30,573.89 30,573.89 0.00
Commissioned
620,680.53 503,347.10 117,333.43
materials
Total 98,035,905.66 42,725,311.93 27,251,826.04 113,509,391.55
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
10.Contract assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Provision for impairment of contract assets in the current period
None
62
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
Returns receivable costs 26,678,712.88 28,585,749.81
After the deduction of input VAT 69,000,515.76 860,153.70
Advance payment of income tax 13,259.97 57,448.91
Other
Total 95,692,488.61 29,503,352.42
Other note：None
14.Creditor's right investment
None
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
None
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
None
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
63
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（3） The amount of the assets and liabilities formed by the transfer and the continues involvement of long-
term accounts receivable
Not applicable
17. Long-term equity investment
In RMB
Increase /decrease
Profits
and Closin
losses g
Cash
on Withdra balanc
Openin bonus
Investe Additio Decreas investm Other Change wal of Closing e of
g or
es nal e in ents compre s in impair balance impair
balance profits Other
investm investm Recogn hensive other ment ment
announ
ent ent ized income equity provisi provis
ced to
under on ion
issue
the
equity
method
I. Joint ventures
Shenzh
en
Guanhu
a
128,214 1,312,9 129,527,
Printing 1.00 0.00
,225.54 16.11 142.65
&
Dyeing
Co.,
Ltd.
Subtota 128,214 1,312,9 129,527,
1.00 0.00
l ,225.54 16.11 142.65
2. Affiliated Company
Shenzh
en
Changli
anfa
2,972,2 404,580 3,376,78
Printing
02.97 .26 3.23
&
dyeing
Compa
ny
Yehui
（Jorda
0.00 -954.76 -954.76
n）Co.,
Ltd.
Yehui
Internat -
1,835,8 76,710. 1,853,64
ional 58,964.
97.26 78 3.71
Co., 33
Ltd.
Subtota 4,808,1 345,615 75,756. 5,229,47
l 00.23 .93 02 2.18
Total 133,022 1.00 0.00 1,658,5 75,756. 134,756,
64
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
,325.77 32.04 02 614.83
Other note：None
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Shenzhen Dailishi Underwear Co., Ltd. 23,637,000.00 23,637,000.00
Union Development Group Co., Ltd. 144,109,485.84 144,109,485.84
Shenzhen Xinfang Knitting Co., Ltd. 2,227,903.00 2,227,903.00
Shenzhen South Textile Co., Ltd. 16,059,440.88 16,059,440.88
Total 186,033,829.72 186,033,829.72
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons
Reasons for
Amount of for other
Recog being measured
other comprehe
nized at fair value and
comprehensiv nsive
divide Accumulating Accumulating whose changes
Name e income income
nd income losses are included in
transferred to transferre
incom other
retained d to
e comprehensive
earnings retained
income
earning
Shenzhen Dailishi Long-term
21,077,143.74
Underwear Co., Ltd. holding
Union Development Group Long-term
141,509,485.84
Co., Ltd. holding
Shenzhen Xinfang Knitting Long-term
1,703,903.00
Co., Ltd. holding
Shenzhen South Textile Co., Long-term
14,559,440.88
Ltd. holding
Jintian Industry（Group） Long-term
14,831,681.50
Co., Ltd. holding
Other note：None
19.Other non-current financial assets
In RMB
Items Year-end balance Year-beginning balance
Financial assets measured at fair value with changes included
28,500,000.00 30,650,943.40
in current profits and losses
Total 28,500,000.00 30,650,943.40
Other note: None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Land use Construction
Items House, Building Total
right in process
65
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
I. Original price
1. Balance at period-beginning 263,643,874.93 263,643,874.93
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 the period
（1）Dispose
（2）Other out
4. Balance at period-end 263,643,874.93 263,643,874.93
II.Accumulated amortization
1.Opening balance 157,426,095.17 157,426,095.17
2.Increased amount of the period 3,545,302.69 3,545,302.69
(1) Withdrawal 3,545,302.69 3,545,302.69
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 160,971,397.86 160,971,397.86
III. Impairment provision
1. Balance at period-beginning
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 -end 102,672,477.07 102,672,477.07
2.Book value at period-beginning 106,217,779.76 106,217,779.76
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants due to
Houses and Building 10,108,893.93
historical reasons
Other note: None
21. Fixed assets
In RMB
66
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Items Year-end balance Year-beginning balance
Fixed assets 2,375,066,082.11 2,424,741,252.86
Disposal of fixed assets 278.92
Total 2,375,066,361.03 2,424,741,252.86
(1) List of fixed assets
In RMB
Houses & Machinery Transportation
Items Other equipment Total
buildings equipment s
I. Original price
1.Opening balance 2,550,667,255.2
804,662,188.53 15,278,991.67 50,379,111.90 3,420,987,547.34
4
2.Increased amount of the
period 81,134,386.65 266,663.47 764,135.71 82,165,185.83
(1) Purchase 7,755,945.58 266,663.47 633,891.16 8,656,500.21
(2) Transferred from constructi
on in progress 73,378,441.07 130,244.55 73,508,685.62
(3)Increased of Enterprise
Combination
3.Decreased amount of the
1,481,595.99 347,858.54 1,829,454.53
period
（1）Disposal 1,481,595.99 347,858.54 1,829,454.53
2,630,320,045.9
4. Balance at period-end 804,662,188.53 15,545,655.14 50,795,389.07 3,501,323,278.64
0
II. Accumulated depreciation
1.Opening balance 182,971,386.88 776,447,487.54 4,361,783.39 26,071,314.08 989,851,971.89
2.Increased amount of the
13,585,521.55 111,355,637.89 909,575.11 5,799,256.82 131,649,991.37
period
(1) Withdrawal 13,585,521.55 111,355,637.89 909,575.11 5,799,256.82 131,649,991.37
3.Decrease in the reporting
1,305,145.13 333,944.19 1,639,089.32
period
（1）Disposal 1,305,145.13 333,944.19 1,639,089.32
4.Closing balance 196,556,908.43 886,497,980.30 5,271,358.50 31,536,626.71 1,119,862,873.94
III. Impairment provision
1.Opening balance 6,361,553.37 32,769.22 6,394,322.59
2.Increase in the reporting
period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 6,361,553.37 32,769.22 6,394,322.59
IV. Book value
1,737,460,512.2
1.Book value of the period-end 608,105,280.10 10,274,296.64 19,225,993.14 2,375,066,082.11
3
2.Book value of the period- 1,767,858,214.3
621,690,801.65 10,917,208.28 24,275,028.60 2,424,741,252.86
begin 3
67
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
(2) Fixed assets temporarily idled
None
(3) Fixed assets rented by finance leases
None
(4) Fixed assets without certificate of title completed
In RMB
Items Book Value Reason
Unable to apply for warrants due to
Houses and Building 271,196,732.41
historical reasons
Other note: None
（5）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Liquidation of fixed assets 278.92
Total 278.92
Other note: None
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 23,222,687.28 71,482,031.08
Total 23,222,687.28 71,482,031.08
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision Book value Book balance Provision Book value
for for
devaluation devaluation
Installation of
machines and 23,222,687.28 23,222,687.28 71,482,031.08 71,482,031.08
equipment
Total 23,222,687.28 23,222,687.28 71,482,031.08 71,482,031.08
68
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（2）Changes of significant construction in progress
None
（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Total
1. Balance at year beginning
4. Year-end balance 13,762,176.74 13,762,176.74
2. Increase at this period 11,575,546.14 11,575,546.14
3.Decreased amount of the period
4. Balance at period-end 25,337,722.88 25,337,722.88
II. Accumulated depreciation
1.Opening balance 4,540,987.37 4,540,987.37
2.Increased amount of the period 4,303,599.85 4,303,599.85
(1) Withdrawal
3.Decrease in the reporting period
（1）Disposal
4.Closing balance 8,844,587.22 8,844,587.22
III. Impairment provision
1.Opening balance
2.Increase in the reporting period
（1）Withdrawal
3.Decrease in
the reporting period
69
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（1）Disposal
4. Closing balance
IV. Book value
1.Book value of the period-end 16,493,135.66 16,493,135.66
2.Book value of the period-begin 9,221,189.37 9,221,189.37
Other note：None
26. Intangible assets
(1) Information
In RMB
Non-
Items Land use right Patent right proprietary Software Total
technology
I. Original price
1. Balance at period-beginning 48,258,239.00 11,825,200.00 21,696,241.02 81,779,680.02
2.Increase in the current period
(1) Purchase 460,596.04 460,596.04
（2）Internal R & D
（3）Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 48,258,239.00 11,825,200.00 22,156,837.06 82,240,276.06
II.Accumulated amortization
1. Balance at period-beginning 14,382,583.03 11,825,200.00 6,936,736.99 33,144,520.02
2. Increase in the current period
(1) Withdrawal 445,782.66 2,076,587.06 2,522,369.72
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 14,828,365.69 11,825,200.00 9,013,324.05 35,666,889.74
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 period -end 33,429,873.31 0.00 0.00 13,143,513.01 46,573,386.32
2.Book value at period-
33,875,655.97 0.00 0.00 14,759,504.03 48,635,160.00
beginning
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
70
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Not applicable
27. R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investees or the events
Opening balance Increase Decrease Closing balance
formed goodwill
Name of the investees or the events The merger of dispos
Opening balance Closing balance
formed goodwill enterprises ition
SAPO Photoelectric 9,614,758.55 9,614,758.55
Shenzhen Beauty Century Garment Co.,
2,167,341.21 2,167,341.21
Ltd.
Total 11,782,099.76 11,782,099.76
（2）Impairment of goodwill
In RMB
Name of the investees or the events formed
Opening balance Increase Decrease Closing balance
goodwill
Name of the investees or the events formed Provis dispos
Opening balance Closing balance
goodwill ion ition
SAPO Photoelectric 9,614,758.55 9,614,758.55
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 2,167,341.21
Total 11,782,099.76 11,782,099.76
Information about an asset group or asset group portfolio
None
Explain the goodwill impairment test process, key parameters (such as forecast period growth rate at expected
future cash flow, stable period growth rate, profit margin, discount rate, forecast period, etc.) and the
confirmation method of goodwill impairment loss
None
Impact of the goodwill impairment test
None
Other note
None
29. Long term amortize expenses
In RMB
71
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Amortized
Balance in year- Increase in this expenses Balance in year-
Items Other loss
begin period end
Decoration fee 332,644.10 0.00 71,039.99 261,604.11
Renovation fee 3,775,267.08 212,390.46 488,643.55 3,499,013.99
Other 1,279,384.76 0.00 326,828.08 952,556.68
Total 5,387,295.94 212,390.46 886,511.62 4,713,174.78
Other note: None
30. 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
5,852,540.16 1,463,135.04 5,766,782.71 1,440,192.90
reserves
Unattained internal
1,394,515.52 348,628.88 2,324,192.50 348,628.88
sales profits
Payroll payable 7,412,819.00 1,853,204.75 7,679,100.00 1,919,775.00
Total 14,659,874.68 3,664,968.67 15,770,075.21 3,708,596.78
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Deductible Deductible
Items Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in fair value of investments in
178,849,973.46 44,712,493.37 178,849,973.46 44,712,493.37
other equity instruments
The difference between the initial
recognition cost and tax base of long-
62,083,693.36 15,520,923.34 62,083,693.36 15,520,923.34
term equity investment of Guanhua
Company
Differ difference in rent receivable 6,026,475.40 1,506,618.85 5,636,976.78 1,409,244.20
Total 246,960,142.22 61,740,035.56 246,570,643.60 61,642,660.91
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
End balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Items deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
3,664,968.67 3,708,596.78
assets
Deferred income tax
61,740,035.56 61,642,660.91
liabilities
(4)Details of income tax assets not recognized
In RMB
72
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Items Balance in year-end Balance in year-begin
Deductible temporary difference 149,917,447.24 151,027,647.77
Deductible loss 667,032,025.03 736,209,989.47
Total 816,949,472.27 887,237,637.24
(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
2023 60,048,979.89 129,226,944.33
2024 148,095,898.11 148,095,898.11
2025 83,287,153.64 83,287,153.64
2026 120,820,767.06 120,820,767.06
2028 22,594,586.97 22,594,586.97
2029 100,351,965.47 100,351,965.47
2030 77,636,524.67 77,636,524.67
2031 54,196,149.22 54,196,149.22
Total 667,032,025.03 736,209,989.47
Other note: None
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items for for
devaluation devaluatio
n
Certificate of
deposit for more 30,000,000.00 30,000,000.00 30,030,410.96 30,030,410.96
than 1 year
Investment fund of
Shenzhen Xieli
25,760,086.27 25,760,086.27 25,760,086.27 25,760,086.27
Automobile Co.,
Ltd
Other 200,685.00 200,685.00
Advance payment
for 28,769,782.86 28,769,782.86
equipment fund
Total 55,960,771.27 55,960,771.27 84,560,280.09 84,560,280.09
Other note:Note
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Credit loans 10,773,019.10 0.00
Uncounted and outstanding acceptance 11,288,842.02 37,575,113.83
73
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
notes
Total 22,061,861.12 37,575,113.83
(2) Situation of Overdue Outstanding Short-Term Borrowing
The total amount of overdue short-term loans at the end of this period is in RMB 0.00, of which the important
overdue short-term loans are as follows: None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
Type Balance in year-end Balance in year-begin
Bank acceptance Bill 46,425,031.27 16,682,324.12
Total 46,425,031.27 16,682,324.12
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 21,008,716.36 280,210,281.65
1-2 years 387,161,708.17 1,122,451.76
2-3 years 0.00 496,309.68
3-4 years 0.00 44,629.53
4-5 years 0.00 983,598.33
Over 5 years 411,743.57 786,571.28
Total 408,582,168.10 283,643,842.23
(2) Significant advance from customers aging over one year
None
37.Advance account
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 16,367,252.26 968,394.67
1-2 years 197,892.32
Over 3 years 639,024.58 639,024.58
74
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Total 17,006,276.84 1,805,311.57
(2) Significant advance from customers aging over one year
None
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 122,759.15 68,955.21
Total 122,759.15 68,955.21
Amount and reasons for the significant change in the book value during the reporting period
None
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Increase in this Payable in this Balance in year-
Items Balance in year-begin
period period end
I. Short-term compensation 59,719,860.24 121,750,520.77 127,382,898.25 54,087,482.76
II.Post-employment benefits -
7,706,967.36 7,706,967.36
defined contribution plans
Total 59,719,860.24 129,457,488.13 135,089,865.61 54,087,482.76
（2）Short-term remuneration
In RMB
Increase in this Decrease in this Balance in year-
Items Balance in year-begin
period period end
1.Wages, bonuses, allowances and
57,114,308.02 108,558,742.96 114,539,999.73 51,133,051.25
subsidies
2.Employee welfare 3,882,798.29 3,882,798.29 0.00
3. Social insurance premiums 2,735,562.94 2,735,562.94 0.00
Including：Medical insurance 1,955,275.84 1,955,275.84 0.00
Work injury insurance 119,422.77 119,422.77 0.00
Maternity insurance 201,009.56 201,009.56 0.00
Other 459,854.77 459,854.77 0.00
4. Public reserves for housing 3,814,761.51 3,814,761.51 0.00
5.Union funds and staff education fee 2,605,552.22 2,618,932.70 2,279,621.62 2,944,863.30
Other 0.00 139,722.37 130,154.16 9,568.21
Total 59,719,860.24 121,750,520.77 127,382,898.25 54,087,482.76
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
1. Basic old-age
insurance premiums 0.00 6,410,611.47 6,410,611.47 0.00
2.Unemployment 0.00 149,878.42 149,878.42 0.00
75
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
insurance
3. Annuity payment 0.00 1,146,477.47 1,146,477.47 0.00
Total 7,706,967.36 7,706,967.36
Other note：None
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 320,623.96 6,334,093.50
Enterprise Income tax 768,379.76 1,804,277.95
Individual Income tax 260,524.71 866,274.38
City Construction tax 64,543.97 43,259.90
House property tax 1,280,294.26 102,146.02
Land use tax 4,529.70 0.00
Education surcharge 48,255.87 31,608.85
Stamp tax 12,600.06 18,966.49
Total 2,759,752.29 9,200,627.09
Other note：None
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Interest payable 0.00
Other payable 139,364,842.98 201,317,421.35
Total 139,364,842.98 201,317,421.35
（1）Interest payable
None
（2）Dividends payable
None
(3) Other accounts payable
(a) Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 30,634,930.38 91,213,156.89
Unit account 60,004,929.20 51,681,042.57
Deposit 17,267,441.75 43,277,481.38
Other 31,457,541.65 15,145,740.51
Total 139,364,842.98 201,317,421.35
(b) Other significant accounts payable with aging over one year
None
76
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Lease liabilities due within one year 9,045,873.71 5,175,393.52
Total 9,045,873.71 5,175,393.52
Other note：None
44.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
Did not terminate the confirmation bill
40,146,023.59 27,523,903.58
endorsement, discount
Total 40,146,023.59 27,523,903.58
Other note：None
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
Items Balance in year-end Balance in year-begin
Mortgage-guaranteed loan 728,782,222.63 683,016,243.25
Total 728,782,222.63 683,016,243.25
Description of the long-term loan classification
None
Other note: None,
46.Bond payable
（1）Bond payable
None
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
None
(3) Note to conditions and time of share transfer of convertible bonds
None
77
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（4）Other financial instruments that are classified as financial liabilities
None
47. Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
lease liabilities 17,470,690.57 9,419,249.23
Less：Lease liabilities due within 1 year -9,045,873.71 -5,175,393.52
Total 8,424,816.86 4,243,855.71
Other note
The accrued interest expense of lease liabilities from January to June 2022 is RMB 319,246.14, which is included
in the financial expense-service expense.
48. Long-term payable
None
（1）Statement of long-term payroll payable
None
（2）Special payable
None
49. Long term payroll payable
（1）Statement of long-term payroll payable
None
（2）Change of defined benefit plans
None
50.Estimated liabilities
In RMB
Items Balance in year-end Balance in year-begin Reason
Repayment payable 29,710,962.81 30,741,055.00
Total 29,710,962.81 30,741,055.00
Other note：None
78
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
51.Deferred income
In RMB
Decreased this
Items Beginning of term Increased this term End of term Reason
term
Government
110,461,293.15 13,586,815.72 10,382,503.03 113,665,605.84
Subsidy
Total 110,461,293.15 13,586,815.72 10,382,503.03 113,665,605.84
Details of government subsidies：
In RMB
Amount
Amount
transferr Other
of cost Othe Asset-
New subsidy ed to income
Beginning of deducte r related or
Items in current non- recorded in End of term
term d in the chan income-
period operatio the current
current ges related
nal period
period
income
Receipt of the
project subsidy
from the Finance Related to
433,333.39 433,333.39
Committee for assets
April and June
2012
Subsidy for new
Related to
materials of Line 499,999.96 250,000.02 249,999.94
assets
5
Subsidy for
imported
Related to
equipment and 11,672.06 11,672.06
assets
technology (Line
4)
Subsidy for
imported
Related to
equipment and 140,074.13 70,037.10 70,037.03
assets
technology (Line
5)
National
Development and
Reform
Commission's Related to
49,999.94 25,000.02 24,999.92
supporting funds assets
for strategic
emerging industry
projects
Import subsidy
funds for
Shenzhen
Municipal
Finance
Related to
Committee to 14,388.09 7,194.06 7,194.03
assets
encourage the
introduction of
advanced
technology (in the
current month)
Supporting funds Related to
162,499.96 25,000.02 137,499.94
for polarizer assets
79
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
materials and
technical
engineering
laboratory
Municipal R&D
Related to
center (technical 975,000.00 150,000.00 825,000.00
assets
center (funding)
Finance
Committee's new
1,374,999.9 Related to
materials grant 1,624,999.96 250,000.02
4 assets
(Engineering
Laboratory)
Special fund for
key technical
R&D project of 2,374,999.9 Related to
2,624,999.96 250,000.02
optical 4 assets
compensation
film for polarizer
Local supporting
funds for the
second-phase 9,000,000.0 Related to
9,750,000.00 750,000.00
project of TFT- 0 assets
LCD polarizer
(Line 6)
Pilot project of
agglomeration
development of 1,000,000.0 11,999,999. Related to
12,999,999.96
strategic emerging 2 94 assets
industry region -
Line 6
Third batch of
supporting plans
in 2016 and
supporting plans
for
national/provincia 2,999,999.9 Related to
3,249,999.96 250,000.02
l projects for 4 assets
special funds for
emerging
industries and
future
development
Purchase money
for production
1,999,999.9 24,000,000. Related to
plant, equipment 26,000,000.04
8 06 assets
and instruments of
Line 6
Receipt of special
support funds
from Pingshan Related to
324,999.96 25,000.02 299,999.94
New District assets
Development and
Finance Bureau
Receipt of the
polarized light 1,500,000.0 27,250,000. Related to
28,750,000.00
industrialization 0 00 assets
project for super-
80
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
large TV from
Shenzhen
Municipal
Finance
Committee
Funding for R&D
of key
technologies of
1,883,333.3 Related to
polarizer for 1,983,333.33 100,000.00
3 assets
ultrathin IPS
smart phone
terminals
R&D of key
technologies of
high-performance 6,000,000.0 Related to
6,000,000.00
polarizer for 0 assets
large-size display
panel)
Shenzhen Special
Fund Subsidy
Agreement for
Related to
Improving 147,643.86 147,643.86
assets
Atmospheric
Environmental
Quality
Subsidies for
special technical
transformation
investment
Related to
projects for 159,916.67 9,500.22 150,416.45
assets
technical
transformation
multiplication in
2020
Special major
project award and
supplement
support plan for 10,110,833. Related to
10,662,333.32 551,500.04
technical 28 assets
transformation
multiplication in
2021
Funding for key
technology R&D
project of low-
color round- 2,500,000.0 Related to
2,500,000.00
shaped polarizer 0 assets
for Z 2020N028
fixed curvature
AMOLED
Industrial
investment project
support plan - 11,170,000. Related to
11,170,000.00
first-batch project 00 assets
funding plan in
2022
Enterprise award 500,000.00 500,000.00 Related to
81
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
of harmonious income
labor relations in
Pingshan District
in 2020
Cultivation and
support of high-
tech enterprises in
Shenzhen's 1,000,000.0 Related to
1,000,000.00
scientific and 0 income
technological
innovation in
2022
Fund subsidy for
"Ten" Policies of
anti-epidemic and 与 Related
71,614.00 71,614.00
aid enterprises in to income
Pingshan District
in 2022
One-time subsidy
for training with Related to
657,375.00 657,375.00
post retained in income
2022
Post stabilization Related to
174,966.00 174,966.00
subsidy income
Subsidy for old
Related to
elevator 720,241.51 55,877.86 664,363.65
assets
renovation
Post retaining Related to
12,860.72 12,860.72
subsidy, etc. income
Textile transfer Related to
142,857.09 71,428.58 71,428.51
fund assets
Special fund for
atmospheric Related to
442,000.00 26,000.00 416,000.00
environmental assets
quality
Subsidy for
technical Related to
91,000.00 6,500.00 84,500.00
transformation of assets
dyeing projects
Other note：None
52. . Other non-current liabilities
None
53.Stock capital
In RMB
Changed（+，-）
Year-beginning Issuance Balance in year-
balance Bonus Capitalizatio end
of new Other Subtotal
shares n of public
share
reserve
Total of
506,521,849.00 506,521,849.00
capital shares
82
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Other note：None
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, including preferred shares, perpetual
bonds, etc. at the end of the reporting period
None
(2)Movement of the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. at
the end of the reporting period
None
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the Decrease in the current Year-end balance
current period period
Share premium 1,826,482,608.54 1,826,482,608.54
Other capital reserves 135,117,216.09 135,117,216.09
Total 1,961,599,824.63 1,961,599,824.63
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
None
56.Treasury stock
None
57. Other comprehensive income
In RMB
Amount of current period
Less：
Less：
Amount
Prior
transferred
period
into profit
included in
Year- Amount and loss in After-tax After-tax
other Less： Year-end
Items beginning incurred the current attribute to attribute to
composite balance
balance before period that Income tax the parent minority
income
income tax recognied expenses company shareholder
transfer to
into other
retained
comprehen
income in
sive
the current
income in
period
prior period
1. Other
comprehen 118,643,08 118,643,08
sive 4.23 4.23
income that
83
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
cannot be
reclassified
in the loss
and gain in
the future
Changes in
fair value
of
118,643,08 118,643,08
investment
s in other 4.23 4.23
equity
instruments
2.Other
comprehen
sive
income
1,039,034.8 1,114,790.8
reclassifiab 75,756.02 75,756.02
le to profit 2 4
or loss in
subsequent
periods
Translation
differences
of financial 1,039,034.8 1,114,790.8
statements 75,756.02 75,756.02
2 4
denominate
d
Total of
other
comprehen 119,682,11 119,757,87
75,756.02 75,756.02
sive 9.05 5.07
income
Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of
arbitraged items for adjustment:None
58. Special reserves
None
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
98,245,845.47 98,245,845.47
reserve
Total 98,245,845.47 98,245,845.47
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
130,746,251.74 86,912,390.50
year beginning
Retained earnings after adjustments at the 130,746,251.74 86,912,390.50
84
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
year end
Add: Net profit attributable to owners of the
42,433,525.10 61,162,384.25
Company for the period
Less: withdrawal of statutory surplus 3,175,360.75
reserve
Common stock dividend payable 25,326,092.45 15,195,655.47
Add: Other comprehensive income carried 1,042,493.21
forward to retained earnings
Retained profits at the period end 147,853,684.39 130,746,251.74
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the
affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed
profits are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1,425,009,759.63 1,240,002,222.92 1,097,424,726.81 859,513,585.39
Other business 20,127,549.46 2,985,871.14 4,111,680.57 3,611,874.68
Total 1,445,137,309.09 1,242,988,094.06 1,101,536,407.38 863,125,460.07
Income-related information:
In RMB
Type Division 1 Division 2 Division 3 Total
Types of goods 1,369,146,600.89 53,399,773.66 22,590,934.54 1,445,137,309.09
Including
Polarizer 1,369,146,600.89 1,369,146,600.89
Property lease
53,399,773.66 53,399,773.66
management and others
Textile 22,590,934.54 22,590,934.54
Area 1,369,146,600.89 53,399,773.66 22,590,934.54 1,445,137,309.09
Including
Domestic 1,296,964,926.29 53,399,773.66 4,622,754.68 1,354,987,454.63
Abroard 72,181,674.60 17,968,179.86 90,149,854.46
Market
Including：
Textile
Contract
Including：
85
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Time
Including：
Term
Including：
Sales Channel
Including：
Total
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB 0.00, of which RMB
0.00 is expected to be recognized as income in the year, RMB 0.00 is expected to be recognized as income in
the year, and RMB 0.00 is expected to be recognized as income in the year.
Other note: None
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 193,493.65 281,149.75
Education surcharge 133,269.00 200,819.41
Property tax 2,911,689.84 2,888,631.84
Land use tax 97,737.54 184,237.54
vehicle and vessel usage tax 1,440.00 360.00
Stamp tax 829,848.83 717,598.47
Other 3,883.32 8,247.78
Total 4,171,362.18 4,281,044.79
Other note: None
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 9,765,028.00 9,298,067.94
Transportation changes 0.00 0.00
Exhibition fee 0.00 0.00
Business expenses
734,977.55 522,657.33
Samples and product loss 697,198.25 751,108.62
Property insurance 2,716,981.13
Sell 5,791,774.85 5,768,718.15
Travel expenses 444,372.70 485,870.44
Other 922,396.04 950,371.21
Total 18,355,747.39 20,493,774.82
Other note：None
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 40,666,351.70 38,236,906.16
Depreciation of fixed assets 7,296,978.02 4,879,277.56
Water and electricity 1,062,777.63 3,022,844.03
Intermediary organ 2,701,374.70 1,931,057.09
Intangible assets amortization 2,514,696.45 832,673.40
Travel expenses 131,833.96 210,173.80
Office expenses 362,061.20 443,729.99
Business entertainment 729,775.83 588,954.42
Repair charge 670,088.51 604,512.02
Property insurance 209,327.75 128,797.77
Low consumables amortization 69,360.98 857,011.20
Board fees 190,498.78 109,620.00
Rental fee 1,650,936.30 0.00
Other 3,192,127.05 3,482,103.32
Tax 61,448,188.86 55,327,660.76
Other note: None
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Wage 8,566,206.98 8,134,336.44
Material 23,286,446.67 18,818,987.18
Depreciation 1,908,863.88 1,650,506.69
Fuel & Power 473,821.67 423,847.84
Travel expenses 45,732.13 96,760.54
Other 589,921.33 45,654.70
Total 34,870,992.66 29,170,093.39
Other note: None
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 15,882,534.27 379,800.97
Interest income -773,863.34 -840,978.40
Exchange loss -27,366,911.14 -12,318,481.73
Fees and other 3,424,366.77 3,564,625.68
Total -8,833,873.44 -9,215,033.48
Other note：None
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 10,780,654.48 8,764,569.01
87
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns
1,658,532.04 -412,713.12
accounted for by equity method
Investment income from the disposal of
20,779.93
long-term equity investment
Dividend income earned during
investment holdings in other equity 708,000.00 1,122,007.80
instruments
Structured deposit interest 8,967,680.80 9,422,057.74
Other -291,040.32
Total 11,043,172.52 10,152,132.35
Other note：None
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Transaction financial assets 0.00 914,599.37
Total 914,599.37
Other note：None
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 6,951,880.47 -5,217,962.16
Loss of bad note receivable 291,096.44 58,202.39
Loss of bad accounts receivable -10,228,230.44 812,160.93
Total -2,985,253.53 -4,347,598.84
Other note：None
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and Impairment of
-42,073,672.20 -52,628,070.13
contract performance costs
Total -42,073,672.20 -52,628,070.13
Other note：None
73. Asset disposal income
In RMB
88
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Items Amount of current period Amount of previous period
Gains& losses on the disposal of fixed
-11,114.72 -55.96
assets
74. 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
Return insurance settlement
1,615,000.00 1,615,000.00
income
No payment required 78,644.95 17,140,459.60 78,644.95
Other 74,470.10 18,938.83 74,470.10
Payable without payment 0.00 3,278,053.95
Total 1,768,115.05 20,437,452.38 1,768,115.05
Government subsidies recorded into current profits and losses： None
75.Non-current expenses
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Other 202,204.91 0.00 202,204.91
Non-current asset Disposition
10,885.38 344,978.92 10,885.38
loss
Total 213,090.29 344,978.92 213,090.29
Other note：None
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 16,930.91 7,936,142.04
Deferred income tax expense 323,966.90 -57,226.00
Total 340,897.81 7,878,916.04
(2)Reconciliation of account profit and income tax expenses
In RMB
Items Amount of current period
Total profits 70,445,608.69
Income tax expenses calculated at the applicable tax rate 17,469,185.37
Influence of different tax rates applied by some subsidiaries -5,705,058.69
Income not subject to tax -2,348,309.43
Non-deductible costs, expenses and losses 6,733,685.35
Tax impact by the unrecognized deductible losses and deductible temporary
-11,684,949.37
differences in previous years
Tax impact of unrecognized deductible losses and deductible temporary
1,106,993.48
differences
Tax impact of research and development fee plus deduction -5,230,648.90
Income tax expense 340,897.81
Other note：None
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Interest income and other（Not
559,472.02 665,366.82
including financing product）
Letter of Credit Deposit 152,041,095.07 13,963,635.17
Government Subsidy 13,883,551.50 7,242,800.00
Current account 120,535,575.04 16,893,575.28
Insurance claim 0.00 3,255,114.00
Total 287,019,693.63 42,020,491.27
Note to other cash received in connection with operating activities: None
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Payment of credit deposit 11,655,819.11 122,116,897.49
Other 37,548,518.13 38,830,126.18
Total 49,204,337.24 160,947,023.67
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products,
635,000,000.00 779,428,611.40
principal and income
Total 635,000,000.00 779,428,611.40
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Purchase of financial management,
650,000,001.00 732,374,977.65
structured deposit and investment
Total 650,000,001.00 732,374,977.65
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
None
90
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Restricted stock of stock repurchase
0.00 7,820,298.30
incentive object
Total 7,820,298.30
Note to other Cash paid related with financing activities： None
79. 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 70,104,710.88 113,422,540.25
Add: Impairment loss provision of assets 45,058,925.73 52,628,070.13
Depreciation of fixed assets, oil and gas assets and consumable
74,763,001.21 58,051,019.56
biological assets
Depreciation of Use right assets
Amortization of intangible assets 460,596.04 832,673.40
Amortization of Long-term deferred expenses 674,121.16 390,173.02
Loss on disposal of fixed assets, intangible assets and other long-
11,114.72 20,779.93
term deferred assets
Fixed assets scrap loss 427,672.86
Loss on fair value changes -914,599.37
Financial cost -8,833,873.44 -9,215,033.48
Loss on investment -11,043,172.52 -10,131,352.42
Decrease of deferred income tax assets 43,628.11 -57,226.00
Increased of deferred income tax liabilities 97,374.65 -334,656.31
Decrease of inventories -113,943,401.07 -95,326,175.24
Decease of operating receivables -74,703,894.32 -84,942,673.31
Increased of operating Payable 96,749,103.44 -77,494,749.27
Other
Net cash flows arising from operating activities 79,438,234.59 -52,643,536.25
II. Significant investment and financing activities that without cash
flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
III .Movement of cash and cash equivalents：
Ending balance of cash 348,660,980.95 252,993,764.22
Less: Beginning balance of cash equivalents 302,408,433.72 278,337,236.95
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
91
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Net increase of cash and cash equivalent 46,252,547.23 -25,343,472.73
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 348,660,980.95 302,408,433.72
Including：Cash at hand 6,238.09 792.64
Demand bank deposit 348,654,742.86 302,407,641.08
III. Balance of cash and cash equivalents
348,660,980.95 302,408,433.72
at the period end
Other note：None
80. Note of statement of changes in the owner's equity
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:None
81. The assets with the ownership or use right restricted
In RMB
Book value at the end of the reporting
Items Cause of restriction
period
Monetary fund 7,940,013.85 Deposit for L/C
Fixed assets 238,616,091.47 Mortgage
Intangible assets 33,433,699.75 Mortgage
Total 279,989,805.07
Other note：None
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds
Including：USD 3,899,216.67 6.7114 26,169,202.76
Euro
HKD 800,248.29 0.8552 684,372.34
Yen 22,112,084.00 0.0491 1,085,703.32
Account payable
Including：USD 5,847,606.34 6.7114 39,245,625.19
Euro
HKD 278,280.00 0.8552 237,985.06
Long-term borrowing
Including：USD
Euro
92
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
HKD
Other receivable
Including：USD 70,526.62 6.7114 473,332.36
Other payable
Including：USD 676,686.00 6.7114 4,541,510.42
HKD 30,450.09 0.8552 26,040.92
Yen 3,381,984.00 0.0491 166,055.41
Euro 22,500.00 7.0084 157,689.00
Account payable
Including：USD 6,561,323.06 6.7114 44,035,663.58
Yen 4,040,248,216.00 0.0491 198,376,187.41
Other note：None
(2) Note to overseas operating entities, including important overseas operating entities, witch 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
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information: None
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount
included in
Items Amount Project
current profit
and loss
Other
A B seat old elevator renovation subsidy 50,000.00 50,000.00
income
Other
Post stabilization subsidy 77,242.92 77,242.92
income
Other
Protection supplies support 10,000.00 10,000.00
income
Other
Elevator renovation renewal subsidies 5,877.86 5,877.86
income
Other
Post retaining subsidy, etc. 8,000.00 8,000.00
income
Other
Social security return 3,692.52 3,692.52
income
Other
Other 3,579.33 3,579.33
income
Other
Received individual income tax handling fee refund 57,297.68 57,297.68
income
Futian Government Futian District Investment Promotion and Enterprise Other
10,000.00 10,000.00
Service Center Protective Equipment Support Government Subsidies income
Additional VAT reduction and exemption by the tax bureau implementing the
Other
six-tax and two-fee reduction and exemption policy for small and micro 7,743.96 7,743.96
income
enterprises.
93
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Social Security Bureau Unemployment Insurance Stabilizing Posts and Other
18,625.00 18,625.00
Preventing Unemployment One-off Training Subsidies for Staying in Work income
Deferred
Subsidy for new materials of Line 5 5,000,000.00 250,000.04
income
Deferred
Subsidy for imported equipment and technology (Line5) 1,400,741.72 70,037.10
income
National Development and Reform Commission's supporting funds for Deferred
500,000.00 25,000.02
strategic emerging industry projects income
Subsidies (current month) by Shenzhen Municipal Finance Committee Deferred
143,881.00 7,194.06
encouraging the introduction of advanced technology import income
Supporting Funds for Polarizer Materials and Technology Engineering Deferred
500,000.00 25,000.02
Laboratory income
Deferred
Municipal R&D Center (Technology Center (Grant) 3,000,000.00 150,000.00
income
Deferred
Finance Committee New Material Grant (Engineering Laboratory) 5,000,000.00 250,000.02
income
Special fund for key technical R&D project of optical compensation film for Deferred
5,000,000.00 250,000.02
polarizer income
T Local supporting funds for the second-phase project of TFT-LCD polarizer Deferred
15,000,000.00 750,000.00
(Line 6) income
Pilot project of agglomeration development of strategic emerging industry Deferred
20,000,000.00 1,000,000.02
region - Line 6 income
Third batch of supporting plans in 2016 and supporting plans for
Deferred
national/provincial projects for special funds for emerging industries and 5,000,000.00 250,000.02
income
future development
Deferred
Purchase money for production plant, equipment and instruments of Line 6 40,000,000.00 1,999,999.98
income
Receipt of special support funds from Pingshan New District Development Deferred
500,000.00 25,000.02
and Finance Bureau income
Receipt of the polarized light industrialization project for super-large TV Deferred
30,000,000.00 1,500,000.00
from Shenzhen Municipal Finance Committee income
Funding for R&D of key technologies of polarizer for ultrathin IPS smart Deferred
2,000,000.00 100,000.00
phone terminals income
Fund of Shenzhen Municipal Finance Committee (Z 2018N007
Deferred
R&D of key technologies of high-performance polarizer for large-size 6,000,000.00 0.00
income
display panel)
Subsidies for special technical transformation investment projects for Deferred
190,000.00 9,500.22
technical transformation multiplication in 2020 income
Special major project award and supplement support plan for technical Deferred
11,030,000.00 551,500.02
transformation multiplication in 2021 income
Funding for key technology R&D project of low-color round-shaped Deferred
2,500,000.00 0.00
polarizer for Z 2020N028 fixed curvature AMOLED income
Industrial investment project support plan - first-batch project funding plan in Deferred
11,170,000.00 0.00
2022 income
The project subsidies received from the Finance Committee in April and June Deferred
433,333.39 433,333.39
2012 income
Deferred
Subsidies for purchase of imported equipment and technical (Line 4) 11,672.06 11,672.06
income
Shenzhen Municipal Atmospheric Environment Quality Improvement Deferred
147,643.86 147,643.86
Special Fund Subsidy Agreement income
Deferred
Received the handling fee of tax withheld and paid by the tax bureau 100,132.83 100,132.83
income
Deferred
Received the Social Security Bureau’s Stable Job Subsidy 174,966.00 174,966.00
income
Received the first batch of one-off training subsidies for job retention in 2022 Deferred
657,375.00 657,375.00
from the Social Security Bureau income
Received the "Ten" policy subsidy by Pingshan District's anti-epidemic 71,614.00 Deferred 71,614.00
94
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
warm-hearted aid in 2022 (the first batch) income
Received the 2020 Pingshan District Harmonious Labor Relations Enterprise Deferred
500,000.00 500,000.00
Award Fund (Third class) income
Received the first grant of the second batch of 2022 High-tech Enterprise Deferred
1,000,000.00 1,000,000.00
Cultivation Funding of Shen TechnologyInnovation income
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
None
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
None
(2) Combined cost and goodwill
None
(2) Combined cost and goodwill
None
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
None
(6) Other note
None
95
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
None
(2) Combination cost
None
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
None
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities
of the listed companies whether constituted a business and its basis, the determination of the combination costs,
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
None
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.) caused by
other reasons and relevant information:
None
6.Other
None
96
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Share-holding ratio Acqui
Register
Subsidiary operatio Business nature Indirectl red
ed place Directly
n y way
Shenzhen Lishi Industry Shenzhe Shenzhe Domestic trade, Property 100.00 Establ
Development Co., Ltd n n Management % ish
Establ
Shenzhe Shenzhe Accommodation, restaurants, 100.00 ish
Shenzhen Huaqiang Hotel
n n business center; %
Shenfang Property Management Shenzhe Shenzhe 100.00 Establ
Property Management ish
Co., Ltd. n n %
Shenzhen Beauty Century Shenzhe Shenzhe Production of fully electronic 100.00 Establ
Garment Co., Ltd. n n jacquard knitting whole shape % ish
Establ
Shenzhen Shenfang Sungang Shenzhe Shenzhe 100.00 ish
Property Management Co., Ltd. Property Management
n n %
Shenzhe Shenzhe Purch
SAPO Photoelectric Polarizer production and sales 60.00%
n n ase
Hongko Hongko 100.00 Establ
Shengtou (Hongkong) Co.,Ltd. Production and sales of polarizer
ng ng % ish
Establ
Shenzhen Shengjinlian Shenzhe Shenzhe 100.00 ish
Property leasing
Technology Co., Ltd. n n %
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee, and holding more than half voting
rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation, the control basis is: None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Holding proportion Profit or loss Dividend declared Closing balance of
Name of non-controlling attributable to non- to non-controlling non-controlling
interest controlling interest interest interest
SAPO Photoelectric 40.00% 27,671,185.78 0.00 1,174,704,542.96
Other note：None
97
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Subsid Curren Non- Curren Non-
Non- Total Non- Total
Curren Total t current Curren Total t current
iaries current liabiliti current liabiliti
t assets assets liabiliti Liabili t assets assets liabiliti Liabili
assets es assets es
es ties es ties
SAPO 1,947, 2,458, 4,406, 595,62 879,34 1,474, 1,627, 2,581, 4,209, 517,27 827,06 1,344,
Photoe 415,65 958,90 374,55 6,615. 7,315. 973,93 394,11 716,14 110,25 1,215. 6,348. 337,56
lectric 0.28 3.15 3.43 60 98 1.58 0.47 8.26 8.73 13 51 3.64
In RMB
Current term Last term
Total Cash flow Total Cash flow
Subsidiarie
s Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
SAPO -
1,390,584,9 69,177,964. 69,177,964. 80,837,844. 1,026,352,2 79,133,750. 79,133,750.
Photoelectr 49,132,316.
01.04 44 44 34 89.62 25 25
ic 09
Other note：None
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
None
Other note：None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
Not applicable
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding Ratio
Name of Main Places of Registration Nature of The accounting treatment of
(%)
Subsidiary Operation Place Business investment in associates
direct indirect
Shenzhen
Property
Guanhua Shenzhen Shenzhen 50.16% Equity method
leasing
Printing &
98
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Dyeing Co.,
Ltd
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the voting
right ratio: None
Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of
voting rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Current assets 40,540,555.98 37,787,147.72
Including： Cash and cash equivalent 224,653,907.84 227,586,396.23
Non-current assets 265,194,463.82 265,373,543.95
Total assets 15,427,466.62 18,194,214.40
Current liabilities 34,108,058.19 35,190,853.69
Non-current liabilities 49,535,524.81 53,385,068.09
Total liabilities 215,658,939.01 211,988,475.86
Minority equity
Attributable to shareholders of the parent
215,658,939.01 211,988,475.86
company
Share of net assets calculated by stake 108,174,523.81 106,333,419.49
Adjustment items
-- Goodwill 21,595,462.44 21,595,462.44
-- Internal transactions did not achieve
0.00 0.00
profit
--Other 285,343.61 285,343.61
Book value of equity investment in joint
130,055,329.86 128,214,225.54
ventures
The fair value of the equity investment of
a joint venture with a public quotation
Operating income 10,946,554.54 8,614,658.31
Financial expenses -135,801.19 -53,530.25
Income tax expenses -717,712.93 1,990,580.05
Net profit 2,617,456.35 -525,032.86
Net profit from terminated operations
Other comprehensive income
Total comprehensive income 2,617,456.35 -525,032.86
Dividends received from joint ventures
0.00 0.00
for this year
Other note：None
99
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
None
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investment
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
Not applicable
X. Risks Related to Financial Instruments
The objective of the Company in risk management is to strike a proper balance between risks and benefits, and
strive to reduce the adverse impact of financial risks on the Company's financial performance. Based on this risk
management objective, the Company has formulated risk management policies to identify and analyze the risks
faced by the Company, set appropriate risk acceptable levels and design corresponding internal control
procedures to monitor the risk level of the Company. The Company will regularly review these risk
management policies and related internal control systems to adapt to changes in market conditions or business
100
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
activities of the Company. The internal audit department of the Company also regularly or randomly checks
whether the implementation of the internal control system complies with the risk management policy
The main risks caused by the Company's financial instruments are credit risk, liquidity risk and market risk
(including exchange rate risk, interest rate risk and commodity price risk).
The Board of Directors is responsible for planning and establishing the Company's risk management
framework, formulating the Company's risk management policies and relevant guidelines, and supervising the
implementation of risk management measures. The Company has formulated risk management policies to
identify and analyze the risks faced by the Company. These risk management policies clearly define specific
risks, covering many aspects such as market risk, credit risk and liquidity risk management. The Company
regularly evaluates changes in the market environment and its business activities to decide whether to update
the risk management policies and systems. The risk management of the Company is carried out by the Risk
Management Committee in accordance with the policies approved by the Board of Directors. The Risk
Management Committee identifies, evaluates and avoids relevant risks through close cooperation with other
business departments of the Company. The internal audit department of the Company regularly reviews the risk
management control and procedures, and reports the review results to the Audit Committee of the Company.
The Company disperses the risks of financial instruments through appropriate diversified investment and
business portfolio, and reduces the risks concentrated in a single industry, a specific region or a certain
counterparty by formulating corresponding risk management policies.
(1) Credit risk
Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting in
financial losses of the Company.
The Company manages credit risk according to portfolio classification. Credit risks mainly arise from bank
deposits, notes receivable, accounts receivable and other receivables.
The bank deposits of the Company are mainly deposited in state-owned banks and other large and
medium-sized listed banks, and such bank deposits are not expected to have significant credit risks.
For notes receivable, accounts receivable, other receivables and long-term receivables, the Company sets
relevant policies to control credit risk exposure. The Company evaluates customers' credit qualifications based
on their financial status, credit records and other factors such as current market conditions, and sets
corresponding credit periods. The Company will regularly monitor customers' credit records. For customers
with bad credit records, the Company will adopt written dunning, shortening of credit period or cancellation of
credit period to ensure that the overall credit risk of the Company is within the controllable range.
Debtors of accounts receivable of the Company are customers distributed in different industries and
regions. The Company continuously evaluates the financial status of accounts receivable and purchases credit
guarantee insurance when appropriate.
The maximum credit risk exposure the company is subject to is the book amount of each financial asset in
the balance sheet. The Company has not provided any other guarantee that may expose the Company to credit
risk.
(2) Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle by
delivering cash or other financial assets.
The member companies of the Company are responsible for their own cash management, including short-
101
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
term investment of cash surplus and raising loans to meet the estimated cash demand (if the loan amount
exceeds certain preset authorization limits, it needs to be approved by the Board of Directors of the Company).
In addition, the Company will also consider negotiating with suppliers to reduce part of the debt amount, or
obtain funds in advance by selling long-aged accounts receivable, so as to reduce the cash flow pressure of the
Company. The Company's policy is to regularly monitor the short-term and long-term liquidity demand and
whether it meets the requirements of the loan agreement, so as to ensure that sufficient cash reserves and
securities that can be realized at any time are maintained, and at the same time, to obtain sufficient reserve funds
that major financial institutions promise to provide, so as to meet the short-term and long-term liquidity
demand.
(3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk and other
price risks.
Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will
fluctuate due to changes in market interest rates. Interest rate risk can be caused by recognized interest-bearing
financial instruments and unrecognized financial instruments (such as certain loan commitments).
The Company's interest rate risk mainly arises from long-term bank loans. Financial liabilities with
floating interest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixed
interest rate expose the Company to fair value interest rate risk.
The Company pays close attention to the impact of interest rate changes on its interest rate risk. At present,
the Company has not adopted interest rate hedging policy. However, the management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate risk when necessary.
For financial instruments held on the balance sheet date, which expose the Company to fair value interest
rate risk, the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of
remeasuring the financial instruments according to the new interest rate, assuming that the interest rate changes
on the balance sheet date. For the floating interest rate non-derivative instruments held on the balance sheet
date, which expose the Company to cash flow interest rate risk, the impact of the above sensitivity analysis on
net profit and shareholders' equity is the impact of the above interest rate changes on the annual estimated
interest expense or income. Last year's analysis was based on the same assumptions and methods.
Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments will
fluctuate due to the change of foreign exchange rate. Exchange rate risk can be derived from financial
instruments denominated in foreign currencies other than the functional currency.
Exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial
position and cash flow of the Company. The ratio of foreign currency assets and liabilities held by the Company
to the total assets and liabilities is not significant. Therefore, the Company believes that the exchange rate risk it
faces is not significant.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Items Closing fair value
102
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Fir value Fir value Fir value
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair value measurement -- -- -- --
(1) Transactional Financial Asset 609,244,744.72 28,500,000.00 637,744,744.72
1. Financial assets measured at fair
value and whose changes are included 609,244,744.72 609,244,744.72
in the current profit and loss
2. Specify the financial assets
measured at fair value and whose
28,500,000.00 28,500,000.00
changes are included in the current
profit and loss
（2）Equity instrument investment 28,500,000.00 28,500,000.00
（III) Other equity instrument
186,033,829.72 186,033,829.72
investment
（VI）Receivable financing 51,434,865.61 51,434,865.61
Total liabilities measured at fair value
609,244,744.72 265,968,695.33 875,213,440.05
on a non-ongoing basis
II Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
Quotes of the same assets or liabilities in active markets (unadjusted). The fair value of the Fuao Stoke
held by the Company at the end of the period is measured based on the closing price of Shenzhen Stock
Exchange on June 30, 2022.
3. Items measured based on the continuous or uncontinuous level 2nd fair value, valuation technique as used,
nature of important parameters and quantitative information
Use observable input values other than the market quotation of assets or liabilities in the Level I directly (i.e.
price) or indirectly (i.e. derived from price).
4. Items measured based on the continuous or uncontinuous level 3rd fair value, valuation technique as used,
nature of important parameters and quantitative information
Assets or liabilities use any input value that is not based on observable market data (unobservable input
value).
1. Financial assets measured at fair value and whose changes are included in the profits and losses of the
current period are bank structured deposits held by the Company, which are measured at fair value based on the
principal amount due to their short maturity;
2. Accounts receivable financing is a bank acceptance bill with a short face value and a face value close to
the fair value, which is measured at the face value as the fair value;
3. Investment in other equity instruments is held by the Company Investment in non-tradable equity
instruments is mainly valued and measured by market method, asset-based method and income method. Among
103
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
them: Shenzhen Jiafeng Textile Industry Co., Ltd. and Jintian Industry (Group) Co., Ltd. faced with a operating
environment and operating conditions and financial status, so the Company uses zero yuan as a reasonable
estimate of fair value for measurement; Changxing Junying Equity Investment Partnership (Limited
Partnership) has no significant changes in its operating environment, operating conditions and financial status,
so the Company measures the investment cost as a reasonable estimate of fair value.
5. Continuous third-level fair value measurement items, adjustment information between initial and final book
values and sensitivity analysis of un-observable parameters
Not applicable
6. Continuous fair value measurement items, the conversion between different levels in the current period, the
reasons for the conversion and the policy for determining the conversion time
Not applicable
7. Change of valuation technique incurred in the current period and cause of such change
Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicable
9.Other
None
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
The parent
The parent
company of the
Name Registered address Nature Registered capital company of the
Company's
Company’s vote
shareholding
ratio
ratio
18/F, Investment Equity
Shenzhen investment ,
Investment Building, Shennan
Real-estate RMB 28,009 million 46.21% 46.21%
Holdings Co.,Ltd. Road, Futian District, Development
and Guarantee
Shenzhen
Note to the parent company:
The company is authorized and approved to be state-owned independent company by Shenzhen Government,
104
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
and it Executes financial contributor function on state-owned enterprise within authorization scope.
Therefore, the Company’s ultimate controller is Shenzhen Investment Holdings Co., Ltd.
Other note：None
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-3, Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
None
Other note: None
4.Other Related parties information
Other related party Relationship to the Company
Suzhou Advantage Ford Investment Center (Limited
The controlling party of SAPO Shareholder
partnership)
Shengto (HK) Co., Ltd. The Company Executives are Director of the company
Sharing Company of Suzhou Advantage Ford Investment
Hengmei Photoelectric Co., Ltd.
Center (Limited partnership)
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Other note: None
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
None
Related transactions on sale goods and receiving services
None
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Related guarantee
In RMB
Guarantee Whether the guarantee
Guaranteed party Amount Guarantee start date
end date has been fulfilled
SAPO Photoelectric 436,470,600.00 September 8,2020 No
The Company is the secured party
Not applicable
105
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
The annual lending
Printing & Dyeing Co., 3,806,454.17 July 30,2020 July 30,2022
interest rate is 0.30%
Ltd.
Loaned
(6) Related party asset transfer and debt restructuring
None
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
3,523,165.00 2,512,499.00
personnel
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
None
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Hengmei Photoelectric Co., Ltd. 168,423.60 170,977.53
Other payable Shenzhen Xinfang Knitting Co., Ltd. 244,789.85 244,789.85
Other payable Shenzhen Changlianfa Printing & dyeing Co., Ltd. 2,061,699.95 2,023,699.95
Other payable Yehui International Co.,Ltd. 1,124,656.60 1,124,656.60
Other payable Shengtou （Hongkong）Co., Ltd. 315,000.00 315,000.00
Other payable Shenzhen Guanhua Printing & dyeing Co., Ltd. 3,768,454.17 3,806,454.17
7. Related party commitment
None
8.Other
None
106
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
XIII. Share payment
1. Overall situation of share payment
□Applicable √Not applicable
2. Equity-settled share-based payment
□Applicable √Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of June 30,2022,The company does not disclose the pension plan undisclosed matter should exist.
2. Contingency
(1) Significant contingency at balance sheet date
Shenzhen SAPO Photoelectric Technology Co., Ltd. (hereinafter referred to as "SAPO Photoelectric"), a
holding subsidiary of the Company, was sued by Hangzhou Jinhang Equity Investment Fund Partnership
(Limited Partnership), another shareholder of SAPO Photoelectric, for dissolution, in which the Company is the
third party. The court heard the case on July 15, 2022, and as of July 31, 2022, no judgment had been made. As
the final judgment of the court is uncertain, its impact on the Company's current and future profits cannot be
estimated temporarily.
Manager of Shenzhen Shenbao Textile Industry and Trade Co., Ltd. v. The Company, Shenzhen
Yuanxingchang Industrial Co., Ltd. and Su Xingbin for Liquidation Liability Dispute, involving an amount of
RMB 2,567,500. The court held the first instance hearing on May 27, 2022 and June 30, 2022, and has not yet
made a judgment. As the final judgment of the court is uncertain, its impact on the Company's current and
future profits cannot be estimated temporarily.
(2) The Company have no significant contingency to disclose, also should be stated
None
107
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
3.Other
None
XV. Events after balance sheet date
1. Significant events had not adjusted
None
2. Profit distribution
In RMB
Profits or dividends to be distributed 0.00
Profits or dividends declared after deliberation and approval 0.00
Profit distribution scheme No
3. Sales return
None
4. Notes of other significant events
As of December 31,2022,The company does not disclose the pension plan undisclosed matter should exist.
XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
None
(2) Prospective application
None
2. Liabilities restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets exchange
None
4. Pension plan
Not applicable
108
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
5. Discontinuing operation
Not applicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure, management
requirements and internal reporting system. Based on the operating divisions, the Company confirms three
reporting divisions, namely textiles, polarizer, trade and property leasing.
Divisional reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each division when reporting to the management. These measurement basis are consistent
with the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
Property lease and Offset between
Items Polarizer Textile Total
other divisions
1,445,137,309.0
Operating income 1,369,146,600.89 55,921,761.91 22,590,934.54 -2,521,988.25
9
Including: revenue from 1,445,137,309.0
1,369,146,600.89 53,551,733.84 22,438,974.37
foreign transaction 9
Revenue from inter-
2,370,028.07 151,960.18 -2,521,988.25 0.00
segment transactions
Including: revenue from 1,445,137,309.0
1,369,146,600.89 55,921,761.91 22,590,934.54 -2,521,988.25
main business 9
1,242,988,094.0
Operating cost 1,204,852,305.21 16,133,387.77 24,467,674.70 -2,465,273.62
6
Including: main 1,242,988,094.0
1,204,852,305.21 16,133,387.77 24,467,674.70 -2,465,273.62
business cost 6
Operating profit 67,615,441.44 5,407,324.74 -4,416,615.83 284,433.59 68,890,583.93
5,690,609,337.0
Total assets 4,406,374,553.43 3,244,708,029.98 50,663,794.27 -2,011,137,040.65
2
1,681,925,715.5
Total indebtedness 1,474,973,931.58 218,686,189.25 36,832,679.61 -48,567,084.93
1
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be
disclosed, explain the reason
None
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
None
8.Other
None
109
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Categor Book balance Bad debt provision Book balance Bad debt provision
Book Book
y Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on(%) on(%) on(%) on(%)
Includin
g：
Accrual
of bad
debt 11,466,1 553,832. 10,912,3 8,353,59 417,679. 7,935,91
100.00% 4.83% 100.00% 5.00%
provisio 48.15 48 15.67 0.78 54 1.24
n by
portfolio
Includin
g：
11,466,1 553,832. 10,912,3 8,353,59 417,679. 7,935,91
Total 100.00% 4.83% 100.00% 5.00%
48.15 48 15.67 0.78 54 1.24
Accrual of bad debt provision by portfolio:553,832.48
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 11,466,148.15
Total 11,466,148.15
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balanc
amount
Accrual of bad debt
provision by 417,679.54 136,152.94 553,832.48
portfolio:
Total 417,679.54 136,152.94 553,832.48
Where the significant amount of the reserve for bad debt recovered or reversed: None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Closing balance Proportion % Balance of Bad debt provision
110
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Shenfang Building and
11,466,148.15 100.00% 553,832.48
Peripheral rent
Total 11,466,148.15 100.00%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 12,952,469.33 14,383,631.68
Total 12,952,469.33 14,383,631.68
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
None
3）Bad-debt provision
√Applicable □ Not applicable
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad debt provision Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1, 2022 1,387,764.39 15,111,246.32 16,499,010.71
Balance as at January 1, 2022in
current
Provision in the current period -30,000.00 -30,000.00
Balance as at June 30,2021 1,357,764.39 0.00 15,111,246.32 16,469,010.71
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
111
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant dividends receivable with age exceeding 1 year
None
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 10,000.00 10,000.00
Unit account 15,269,395.10 16,379,395.10
Internal current account 13,561,884.93 14,475,600.00
Spare funds and employee borrowing 55,000.00 0.00
Other 25,200.01 27,647.29
Total 28,921,480.04 30,892,642.39
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1, 2022 1,387,764.39 0.00 15,111,246.32 16,499,010.71
Balance as at January 1, 2022in
current
Current period reversal 30,000.00 30,000.00
Balance as at June 30,2021 1,357,764.39 0.00 15,111,246.32 16,469,010.71
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 55,000.00
1-2 years 4,986,284.93
2-3 years 1,018,295.37
Over 3 years 22,861,899.74
3-4 years 3,500,000.00
4-5 years 19,361,899.74
Over 5 years 28,921,480.04
Total
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Write-
Accrual collected Other
off
amount
Bad debts are withdrawn
according to the aging 1,387,764.39 30,000.00 1,357,764.39
portfoli
Accrual of bad debt
15,111,246.32 15,111,246.32
provision by single item
Total 16,499,010.71 30,000.00 16,469,010.71
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion in total closing
Company Ending balance of
nature of payment closing balanc Aging balance of other
name bad debt provision
receivables
st Internal current
1 13,561,884.93 1-5 years 46.89% 1,242,680.00
account
nd Company More than 5
2 11,389,044.60 39.38% 11,389,044.60
current account years
rd Company More than 5
3 1,800,000.00 6.22% 1,800,000.00
current account years
th Company
4 1,018,295.37 2-3 years 3.52% 1,018,295.37
current account
th Company More than 5
5 592,420.00 2.05% 592,420.00
current account years
合计 28,361,644.90 98.06% 16,042,439.97
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
3. Long-term equity investment
In RMB
Items Closing balance Opening balance
113
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 16,582,629.3 1,972,630,835.3 1,956,048,206.0
1,972,630,835.39 1,956,048,206.09 16,582,629.30
subsidiaries 0 9 9
Investments in
associates and 134,756,614.83 134,756,614.83 133,022,325.77 133,022,325.77
joint ventures
16,582,629.3 2,105,653,161.1 2,089,070,531.8
2,107,387,450.22 2,090,804,820.92 16,582,629.30
Total 0 6 6
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Withdra Closing
Opening Decre wn balance of
Name Add Closing balance
balance ased impairm impairment
invest Other
invest ent provision
ment
ment provisio
n
1,910,247,781.9 1,910,247,781.9
SAPO Photoelectric 14,415,288.09
4 4
Shenzhen Lisi Industrial
8,073,388.25 8,073,388.25
Development Co., Ltd.
Shenzhen Beauty Centruty
14,696,874.34 14,696,874.34 2,167,341.21
Garment Co., Ltd.
Shenzhen Huaqiang Hotal 15,489,351.08 15,489,351.08
Shenfang Property Management
1,713,186.55 1,713,186.55
Co., Ltd.
Shenfang Sungang Property
5,827,623.93 5,827,623.93
Management Co., Ltd.
1,956,048,206.0 1,956,048,206.0
Total 16,582,629.30
9 9
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Adjust Declara Withdra balance
Openin Decreas Gain/lo ment of tion of wn of
Add Other Closing
Name g ed ss of other cash impair impair
investm equity Other balance
balance investm Investm compre dividen ment ment
ent changes provisi
ent ent hensive ds or provisi
income profit on on
I. Joint ventures
Shenzh
en
Guanhu
a
128,214 1,312,9 129,527
Printing 1.00 0.00
& ,225.54 16.11 ,142.65
Dyeing
Co.,
Ltd.
Subtota 128,214 1,312,9 129,527
1.00 0.00 0.00 0.00 0.00 0.00 0.00
l ,225.54 16.11 ,142.65
II. Associated enterprises
Shenzh
2,972,2 404,580 3,376,7
en
114
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Changli 02.97 .26 83.23
anfa
Printing
and
dyeing
Compa
ny
Jordan
Garnent 0.00 -954.76 -954.76
Factory
Yehui
Internat -
1,835,8 76,710. 1,853,6
ional 38,805.
Co., 97.26 78 43.71
01
Ltd.
Subtota 4,808,1 365,775 75,756. 5,229,4
0.00 0.00 0.00 0.00 0.00 0.00 0.00
l 00.23 .25 02 72.18
133,022 1,658,5 75,756. 134,756
Total
,325.77 32.04 02 ,614.83
（3）Other note
None
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main
19,836,395.33 3,883,135.15 36,457,754.34 3,657,570.58
Business
Other Business income 1,320,274.42 1,320,274.42 1,688,908.01 1,688,908.01
Total 21,156,669.75 5,203,409.57 38,146,662.35 5,346,478.59
Income-related information:
In RMB
Type Division 1 Division 2 Total
Types of goods 19,836,395.33 1,320,274.42 21,156,669.75
Including
Property lease
19,836,395.33 19,836,395.33
management and others
Sell electric charge 1,320,274.42 1,320,274.42
Area 21,156,669.75 21,156,669.75
Including：
Shenzhen 21,156,669.75 21,156,669.75
Market
Including：
Contract
Including：
Time
Including：
Term
115
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
Including：
Sale channel
Including：
Total
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period, the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan. Among them, RMB 0.00 is expected to be recognized as
revenue in 0 year, RMB 0.00 is expected to be recognized as revenue in 0 year, and RMB 0.00 is expected to be
recognized as revenue in 0 year.
Other note：Note
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment returns accounted
1,658,532.04 -412,713.12
for by equity method
Investment income from the disposal of long-
20,779.93
term equity investment
Investment income of trading financial assets
8,967,680.80 8,410,570.66
during the holding period
Dividend income earned during investment
708,000.00 1,122,007.80
holdings in other equity instruments
Total 11,334,212.84 9,140,645.27
6.Other
None
XVIII. 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 -11,114.72
Other benefits of
Govemment subsidy recognized in current gain and loss(excluding those
government subsidies that
closely related to the Company’s business and granted under the state’s 10,780,654.48
policies) are confirmed related to
the main business.
It is mainly due to the
Other non-business income and expenditures other than the above 1,555,024.76
compensation for losses.
Less :Influenced amount of income tax 113,018.21
Influenced amount of minor shareholders’ equity (after tax) 4,748,996.68
Total 7,462,549.63 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
116
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Financial Report 2022
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 earnings per share
Earnings per share
Weighted average
Profit of report period Basic earnings per Diluted earnings per
returns equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the Common
1.50% 0.0838 0.0838
stock shareholders of Company.
Net profit attributable to the Common
stock shareholders of Company after 1.24% 0.0691 0.0691
deducting of non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas 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）Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable□√ Not applicable
(3) Explanation of the reasons for the differences in accounting data under domestic and foreign accounting stan
dards. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of th
e overseas institution should be indicated
None
4.Other
None
117
