Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Stock code: 000045,200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No. :2023-13
Summary of 2022 Annual Report of Shenzhen Textile
(Holdings) Co., Ltd.
I. Important notes
The summary is abstract from full-text of annual report, for more details information , investors should found in
the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed
by CSRC.
In addition to the following directors, other directors personally attended the Board meeting at which the Annual Report was
considered.
Names of directors not Positions of directors not present Reasons for not attending the
Name of principal
present in person in person meeting in person
Wang Chuan Director Going on business trip Ning Maozai
Sun Minghui Director Going on business trip Zhu Meizhu
Wang Kai Independent director Due to work Cai Yuanqing
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
√Applicable □ Not applicable
The Company has plan of Converting provident fund to share capital .
□ Applicable √Not applicable
The company’s profit distribution plan approved by the board of directors this time is: based on 506,521,849
shares, a cash dividend of 0.60 yuan (tax included) will be distributed to all shareholders for every 10 shares, and
0 shares (tax included) will be given as bonus shares. The capital reserve will not be converted into share capital.
The profit distribution plan for preferred stocks for the reporting period passed by the board of directors
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Stock abbreviation Shen Textile A，Shen Textile B Stock code 000045，200045
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Office Address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Fax 0755-83776139 0755-83776139
Tel 0755-83776043 0755-83776043
E-mail jiangp@chinasthc.com lizy@chinasthc.com
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
2. Brief introduction to the main business or products in the reporting period
(1) The company's main business
The company's main business covered such the high and new technology industry as represented by LCD
polarizer, its own property management business and the retained business of high-end textile and garment.
During the reporting period, the Company's main business has not changed significantly.
First, the Company continued to optimize the product structure. Under the background of the significant reduction
in production by terminal and panel customers in 2022, it adopted the route of product differentiation, optimized
the customer structure, improved the ability to resist risks, implemented the "Production utilization guarantee"
policy, and raced to seize the market share; Second, it spared no effort to implement the production and operation
of Line 7, focused on improving production capacity, yield and management level, thus helped the Company's
overall business performance to be improved; The third was to continue to promote lean management, strictly
control manufacturing costs, reduce material loss, strengthen material recycling, and reduce costs and increase
efficiency in an all-round way; The fourth was to strengthen the innovation drive, create differentiated competitive
advantages, focus on promoting the construction of SAPO's R&D management system, create a market-oriented
innovation mechanism, and strengthen the technical research; Fifth, it’s to focus on the security of raw material
supply chain and the risk of price increases of chemical raw materials, and accelerate the evaluation and use of
chemical alternative raw materials; Sixth, actively fulfilled social responsibilities, and formulated an
implementation plan for rent reduction of the Company's and its wholly-owned enterprises’ self-own properties
based on actual business conditions, thus to bridge over difficulties with market entities; The seventh was to
promote the major asset restructuring matter, which’s planned to purchase all the equity or the controlling stake of
Hengmei Optoelectronics by issuing shares and paying cash, and meanwhile raise supporting funds, thus to
coordinate system resources, make up for shortcomings, and enhance the core competitiveness of the Company.
(2) Main products and their purposes
Currently, the Company has 7 mass production lines for polarizers, covering TN, STN, TFT, OLED, 3D, dye sheet,
optical film for touch screen and other fields, mainly used in TV, NB, navigator, Monitor, vehicle, industrial
control, instruments, smart phones, wearable devices, 3D glasses, sunglasses and other products，the company has
become a mainstream panel company such as Huaxing Optoelectronics, BOE, Sharp, LGD, Shenzhen Tianma,
Huike, etc. by continuously strengthening sales channel expansion and building its own brand. Qualified
suppliers.
The Company's main products made in each polarizer production line and their application are as follows:
Line Place Product breadth Planned capacity Main projuct
Line 1 Pingshan 500mm 600，000 m2 TN/STN/ Dye sheet
Line 2 Pingshan 500mm 1.2 million m2 TN/STN/CSTN
Line 3 Pingshan 650mm 1 million m2 TFT
Line 4 Pingshan 1490mm 6 million m2 TFT
Line 5 Pingshan 650mm 2 millin m2 TFT
Line 6 Pingshan 1490mm 10 million m2 TFT/OLED
Line 7 Pingshan 2500mm 32 millin m2 TFT/OLED
3.Major accounting data and financial indicators
(1)Major accounting data and financial indicators for the last three years
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of causes
Accounting policy change and Correction of accounting errors
In RMB
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Changed over
End of 2021 End of 2020
last year（％）
End of 2022
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Gross assets（Yuan） 5,617,137,367.90 5,496,647,107.83 5,563,539,326.16 0.96% 4,969,547,552.23 4,969,547,552.23
Net assets attributable
to shareholders of the 2,849,264,555.21 2,816,795,889.89 2,811,366,974.46 1.35% 2,766,234,174.39 2,766,234,174.39
listed company（Yuan）
Changes of
this period
2021 over same 2020
2022 period of Last
year(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Operating income
2,837,988,264.36 2,293,747,892.06 2,330,061,681.00 21.80% 2,108,964,687.80 2,108,964,687.80
（Yuan）
Net profit attributable to
the shareholders of the 73,309,182.94 61,162,384.25 55,733,468.82 31.54% 37,267,995.74 37,267,995.74
listed company（Yuan）
Net profit after
deducting of
non-recurring gain/loss
54,148,057.50 40,650,013.22 35,221,097.79 53.74% 18,084,607.04 18,084,607.04
attributable to the
shareholders of listed
company（Yuan）
Cash flow generated by
business operation, net 490,238,550.60 -4,436,980.35 -4,436,980.35 11,148.92% 1,930,932.76 1,930,932.76
（Yuan）
Basic earning per
0.14 0.12 0.11 27.27% 0.07 0.07
share(Yuan/Share)
Diluted gains per
0.14 0.12 0.11 27.27% 0.07 0.07
share(Yuan/Share)
Weighted average
2.59% 2.19% 2.00% 0.59% 1.36% 1.36%
ROE(%)
Reasons for changes in accounting policy and correction of accounting errors
①Reasons for changes in accounting policies
On December 30, 2021, the Ministry of Finance issued "Interpretation No. 15 of the Accounting Standards for
Business Enterprises" (hereinafter referred to as "Interpretation No. 15"), which regulates the accounting
treatment for the external sales of products or by-products produced by enterprises before their fixed assets reach
their intended usable state or during the research and development process.
Interpretation No. 15 stipulates that if an enterprise sells products or by-products produced before the fixed assets
reach their intended usable status or during the research and development process, it should separately account for
the revenue and costs related to the trial operation sales in accordance with the revenue standards, Accounting
Standards for Business Enterprises No. 1 - Inventory, and other provisions, and include them in the current profit
and loss, The net amount of trial run sales related revenue after offsetting costs should not be used to offset fixed
asset costs or research and development expenses. At the same time, enterprises should separately disclose
relevant information such as the amount of revenue and cost related to trial run sales, specific reporting items, and
important accounting estimates used to determine the costs related to trial run sales in the notes. This provision
shall come into force as of January 1, 2022. Retroactive adjustments shall be made to trial run sales that occur
between the beginning of the earliest period in which financial statements are presented and January 1, 2022.
The Company adopts the retroactive adjustment method for accounting treatment and restates the financial
statements of comparable years. For specific impacts, see "Section X Financial Report (IV) Changes in Important
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Accounting Policies and Accounting Estimates and Correction of Prior Period Errors".
② Correction of accounting errors
Shenzhen Shengbo Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Shengbo Optoelectronics"), a
subsidiary of the company, found significant prior period errors in previous years this year. In accordance with the
relevant provisions of "Accounting Standards for Business Enterprises No. 28 - Changes in Accounting Policies
and Accounting Estimates and Correction of Errors", the company has corrected relevant error matters and
restated the 2021 consolidated financial statements. For details, see "Section X Financial Reports - (IV) Changes
in Significant Accounting Policies and Accounting Estimates and Correction of Prior Period Errors".
(2)Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 670,551,882.04 774,585,427.05 676,901,015.17 715,949,940.10
Net profit attributable to the
17,625,745.18 24,807,779.92 14,115,950.48 16,759,707.36
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
15,102,181.63 19,868,793.84 9,730,544.28 9,446,537.75
to the shareholders of listed
company
Net Cash flow generated by
-65,966,923.49 145,405,158.08 36,463,548.86 374,336,767.15
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
4.Share capital and shareholders
(1)Number of holders of ordinary shares and preference shares with restored voting right and Top 10 shareholders
In shares
Total number Total Total
of common The total number
shareholders at preferred sharehold
shareholders at of preferred shar
the end of the 1 ers at the end of the
the end of the 38,145 34,975 eholders voting ri 0 0
month from the month from the date
ghts restored at p
reporting date of disclosing of disclosing the
eriod-end(if any)
period the annual report annual report(if any)
Shareholdings of top 10 shareholders
Proportion Number of Amount of Number of share
Shareholders Nature of shareholder of shares shares held at restricted shares pledged/frozen
held(%) period -end held State of share Amount
Shenzhen Investment
State-owned legal person 46.21% 234,069,436
Holdings Co., Ltd.
Shenzhen Shenchao State-owned
Technology 3.18% 16,129,032
Investment Co., Ltd. Legal person
Sun Huiming Domestic Nature person 1.23% 6,208,853
Su Weipeng Domestic Nature person 0.71% 3,580,000 Pledge 2,800,000
Chen Xiaobao Domestic Nature person 0.60% 3,029,484
Zhangzhou Xiaotian Domestic Non-
Venture Investment State-owned Legal 0.58% 2,924,500
Co., Ltd. person
1Dueto the fact that the company has not yet obtained the number of shareholders with B shares from China Securities
Depository and Clearing Corporation Limited Shenzhen Branch as of March 31, 2023 (the issuance of the B share
shareholder list is 3 trading days behind the issuance of the A share shareholder list), the total number of
shareholders (34975) is the sum of the number of shareholders with A shares as of March 31, 2023 (30231) and
the number of shareholders with B shares as of March 20, 2023 (4744).
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Li Zengmao Domestic Nature person 0.44% 2,224,397
Qi Jianhong Domestic Nature person 0.28% 1,433,800
Shenzhen Pengkang Domestic Non-
Pharmaceutical Co., State-owned 0.28% 1,429,200
Ltd. Legal person
Peng Xun Domestic Nature person 0.27% 1,359,700
Among the top 10 common shareholders, Shenzhen Investment Holdings Co.,
Ltd. and Shenzhen Shenchao Technology Investment Co., Ltd. do not constitute
a concerted party relationship. In addition, the company does not know whether
Related or acting-in-concert parties among there is an associated relationship among the top 10 ordinary shareholders, and
shareholders above between the top 10 ordinary shareholders and the top 10 shareholders, or
whether they are persons taking concerted action defined in Regulations on
Disclosure of Information about Shareholding of Shareholders of Listed
Company.
Explanation on shareholders participating in the
None
margin trading business(if any )
(2)Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √Not applicable
No preference shareholders in the reporting period
(3)Relationship between the Company and its actual controller in the form of diagram
5. Corporation bonds
□ Applicable √Not applicable
III. Significant events
(I) Issue shares to purchase assets and raise supporting funds
According to the relevant regulations of Shenzhen Stock Exchange, upon the application of the company, the
shares of the company were suspended from trading on the morning of December 19, 2022. On December 30,
2022, the company held the nineteenth meeting of the Eighth Board of Directors and the thirteenth meeting of the
Eighth Board of Supervisors, and deliberated and passed the Proposal on the "Plan for Shenzhen Textile (Group)
Co., Ltd. to Issue Shares, Pay Cash to Purchase Assets and Raise Matching Funds and Related Party Transactions"
and Its Summary and other proposals related to this transaction. The company's shares resumed trading on the
morning of January 3, 2022. The Company intends to purchase 100% equity of Hengmei Optoelectronics Co., Ltd.
by issuing shares and paying cash, and at the same time, it plans to raise matching funds from non-public offering
of shares to no more than 35 qualified specific targets (hereinafter referred to as "this transaction"). This
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
transaction constitutes a related party transaction and is expected to constitute a major asset restructuring, but it
does not constitute a restructuring and listing, nor will it lead to the change of the actual controller of the company.
This transaction is conducive to the company's strong alliance in the polarizer industry, rapidly increasing the
production scale of polarizers, optimizing the layout of industrial chain and deepening the depth of technical
reserves, making the company move towards a new level of high-quality development. Meanwhile, this major
asset restructuring is in line with the relevant development strategies of the country and Shenzhen, and has
positive significance for ensuring the security of the national new display supply chain.
Since the disclosure of this transaction plan, the company and relevant parties have actively promoted the work of
this transaction. As of the disclosure date of this announcement, the audit, evaluation and due diligence involved
in this transaction are still in progress. After the relevant work is completed, the company will convene the
board meeting again to review the relevant matters on this transaction, and the company will perform the relevant
follow-up approval and information disclosure procedures in accordance with relevant laws and regulations.
(II) Progress of polarizer industrialization project for ultra-large TV (Line 7)
During the reporting period, technical indicators such as yield and loss rates of Line 7 improved month by month,
production capacity increased, and the company's operating performance improved month by month. The main
products of Line 7 have been verified by customers, the order volume has gradually increased, and the unit
manufacturing cost of the products has gradually decreased; The yield of the 65 inch large size has reached the
advanced level in the industry, and the product structure has been continuously optimized, driving the
improvement of the company's operating efficiency..
(III) Regarding the investment in the construction of the RTS rear cutting production line
In 2021, the company will increase investment in the construction of a RTS rear cutting production line, with a
total investment of no more than 30 million yuan; As of December 31, 2022, the signed contract amount was
26.17 million yuan, and the actual payment was 24.02 million yuan. Currently, production operations are being
orderly promoted based on the overall market demand and customer order release, and the production line is
continuously improving.
(IV) The disposal of assets of the joint venture company Xieli Automobilemobile Co., Ltd.
Shenzhen Xieli Automobile mobile Enterprise Co., Ltd. (hereinafter referred to as "Shenzhen Xieli") is a
Sino-foreign joint venture invested and established by the company and Hong Kong Xieli Maintenance Company
in 1981, with a registered capital of 3.12 million yuan, and the company holds 50% of the equity. The company's
operating period ended in 2008, and its business license was revoked in 2014. The company's main asset is real
estate. The industrial and commercial license of Shenzhen Xieli was cancelled in March 2020, but there are still
three properties under its name, the disposal of which is required to be resolved after further consultation between
the shareholders of both parties.
On July 26, 2021, the Company filed a lawsuit with Yantian District People's Court in Shenzhen City, Guangdong
Province to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co., Ltd. approved by
Shenzhen Administration for Market Regulation on March 9, 2020, on which the court gave a judgment on
November 21, 2021 to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co., Ltd. approved
by Shenzhen Administration for Market Regulation. On December 3 and December 6,2021, Hong Kong Xili and
Shenzhen Market Supervision Administration submitted appeals to the Shenzhen Intermediate People's Court,
respectively. On April 18, 2022, the Company received the notice of the second trial from Shenzhen Intermediate
People's Court. The case was heard in the second instance on April 27, 2022. The Shenzhen Intermediate People's
Court made the judgment on June 28, 2022: 1. Revoke the administrative judgment Y0308 XC No.1883 of the
People's Court of Yantian District, Shenzhen City, Guangdong Province (2021); II. Remand to Yantian District
People's Court, Shenzhen City, Guangdong Province for retrial. On July 22, 2022, the Company received the
summons from Yantian District People's Court, Shenzhen City, Guangdong Province, and the trial of this case is
scheduled on August 25, 2022.
Yantian court made the first-instance judgment on December 30, 2022, which ruled that we won the case and
cancelled the administrative act of registration cancellation of Shenzhen Xieli. The third person in the original trial,
Hong Kong Xieli Maintenance Company, refused to accept it and appealed to the Shenzhen Intermediate People's
Court on January 10, 2023. Later, because Hong Kong Xieli Maintenance Company did not pay the case
settlement fee as scheduled, Shenzhen Intermediate People's Court issued (2023) the final administrative Decision
No. 387 of Yue 03 Line and ruled that the case should be dealt with as the appellant Hong Kong Xieli
Summary of 2022 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Maintenance Company withdrew the appeal..
(V)Matters concerning waiver of preemptive right and equity transfer of holding subsidiaries
The board of shareholders of SAPO Photoelectric, a holding subsidiary of the Company, agreed that Hangzhou
Jinhang Equity Investment Fund Partnership (Limited Partnership) would transfer its 40% equity of SAPO
Photoelectric to Hengmei Optoelectronics Co., Ltd. For details, please refer to the announcement of the Company
(No.2023-01) on CNINF (http://www.cninfo.com.cn). On January 19, 2023, SAPO Photoelectric obtained the
Notice of Registration issued by Shenzhen Administration for Market Regulation, and the registration procedures
for industrial and commercial changes have been completed for this equity transfer. After this change, the
Company still holds 60% equity of SAPO Photoelectric, and Hengmei Optoelectronics holds 40% equity of SAPO
Photoelectric. This equity transfer is conducive to the synergy of the advantages of both parties in the polarizer
industry, the integration of high-quality resources of both parties, the further enhancement of the main business of
polarizers, and the better promotion of the core competitiveness of listed companies.
(VI)About the progress of the Company and its holding subsidiaries involved in litigation
In July and August 2022, the Company and its holding subsidiary SAPO Photoelectric received the legal
documents such as Notice of Respondence to Action, and Summon, with case numbers of (2022) Y0310 MC No.
3507, No.4013 and No.4336 served by Pingshan District People's Court, Shenzhen City, Guangdong Province,
and were informed that the court had accepted Hangzhou Jinhang Equity Investment Fund Partnership (Limited
Partnership) (hereinafter referred to as "Jinhang Fund") v. SAPO Photoelectric for ① dissolution dispute, ②
dispute over the confirmation of the validity of company resolutions and ③ dispute over shareholders' right to
know, and the Company was informed to participate in the lawsuit as a party to the case, and SAPO Photoelectric
was informed to respond as the defendant to the case. For details, please refer to the Company's Announcement
No. 2022-20 and No. 2022-25 on CNINF (http://www.cninfo.com.cn).
The above three cases, namely, the dispute over dissolution, the dispute over the confirmation of the validity of
company resolutions and the dispute over shareholders' right to know, were heard in the People's Court of
Pingshan District, Shenzhen City, Guangdong Province on July 15, 2022, September 22, 2022, and September 22,
2022 respectively, and no judgment has yet been made.
(VII)Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary SAPO Photoelectric signed the Changxing Junying
Equity Investment Partnership (Limited Partnership) Agreement with the fund manager Huizhi Investment
Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners, and co-sponsored the
establishment of an industrial fund, focusing on the optical film industry chain related projects related to the
company's main business, with a fund size of 50 million yuan. SAPO Photoelectric, as one of the limited partners
of the industrial fund, subscribed for a capital contribution of 28.5 million yuan.
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial and
commercial registration and completed the private equity investment fund registration on February 8, 2018. For
details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).
In order to optimize the strategic layout and supplement the working capital, SAPO Photoelectric and Hangzhou
Yuanzhen Investment Management Co., Ltd. (hereinafter referred to as Yuanzhen Investment) signed the Transfer
Agreement on Property Share of Changxing Junying Equity Investment Partnership (Limited Partnership) on July
11, 2022, and transferred the share of Changxing Fund held by SAPO Photoelectric to Yuanzhen Investment at a
transaction consideration of RMB 28.5 million. After this property share transfer, the Company will withdraw
from Changxing Fund and no longer hold the partnership share of Changxing Fund. For details, please refer to the
Company's Announcement No.2022-21 on Juchao Information Network (http://www.cninfo.com.cn).
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
April 4, 2023
