2022 Annual Report
Shenzhen Textile (Holdings) Co., Ltd.
2022 Annual Report
April 2023
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2022 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors ， the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
Mr.Yin Kefei, The Company leader, Chief financial officer and the person in charge of the accounting department
(the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report
enclosed in this annual report.
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 Reasons for not attending the
Name of principal
present in person present 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
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, Investors and related persons shall keep sufficient risk awareness, and shall
understand the differences between plans, forecasts and commitments, and remind investors of investment risks.
The company has the macroeconomic risks, market competition risks and raw material risks. Investors are advised
to pay attention to investment risks. For details, please refer to the possible risk factors that the company may face
in the XI "Risks facing the Company and countermeasures " in the Section III "Management Discussion &
Analysis".
The company’s profit distribution plan approved by the board of directors this time is:
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.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
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2022 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions.
II. Company Profile & Financial Highlights
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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2022 Annual Report
Documents available for inspection
1. Accounting statements bearing the signatures and seals of the company's legal representative, general manager,
chief financial officer, and person in charge of the accounting agency.
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.
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2022 Annual Report
Definition
Terms to be defined Refers to Definition
Company/The Company/
Refers to Shenzhen Textile (Holdings) Co., Ltd
Shen Textile
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National
Assets Regulatory
National Assets Regulatory Commission of Shenzhen Municipal People's
Commission of Shenzhen Refers to
Government
Municipal People's
Government
The Controlling shareholder/
Shenzhen Investment Refers to Shenzhen Investment Holdings Co., Ltd.
Holdings Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
SAPO Photoelectric Refers to Shenzhen SOPO Photoelectric Co., Ltd.
Jinjiang Group Refers to Hangzhou Jinjiang Group Co., Ltd.
Nitto Denko Refers to Nitto Denko Corporation
Beauty Century Refers to Shenzhen Beauty Century Garment Co., Ltd.
Shenzhen Xieli Refers to Shenzhen Xieli Automobile Co., Ltd.
Hengmei Photoelectric Refers to Hengmei Photoelectric Co., Ltd.
Qimei Material Refers to Qimei Material Technology Investment Co. LTD
Haosheng Danyang Refers to Haosheng (Danyang) Investment Management Co. LTD
Danyang Nuoyan Refers to Danyang Nuoyan Tianxin Investment Partnership (limited partnership)
Xiamen Nuoyan Refers to Xiamen Nuoyan Private Equity Fund Management Co. LTD
Fuzhou Xintou Refers to Fuzhou New Area Development and Investment Group Co. LTD
Hefei Beicheng No.2 Photoelectric Industry Investment Partnership (limited
Hefei Beicheng Refers to
partnership)
Hangzhou Rencheng Refers to Hangzhou Rencheng Trading Partnership (limited partnership)
Shenzhen Xinghe Hard Technology Private Equity Investment Fund Partnership
Xinghe Technology Refers to
(limited partnership)
lishui Huahui Refers to Lishui Huahui Equity Investment Partnership (limited partnership)
Huzhou Painuo Refers to Huzhou Painuohuicai Equity Investment Partnership (limited partnership)
Lishui Tengbei Refers to Lishui Tengbeiming Cheng Equity Investment Partnership (limited Partnership)
Fuzhou Investment Refers to Fuzhou Investment Management Co., LTD
Xiamen Zhifeng Refers to Xiamen Zhifeng Equity Investment Partnership (limited partnership)
Jiaxing Painuo Refers to Jiaxing Painuo Xiancai Equity Investment Partnership (limited partnership)
Huzhou Zhekuang Refers to Huzhou Zhekuang Equity Investment Partnership (limited partnership)
Guangdong Xingzhi Refers to Guangdong Xingzhi Venture Capital Partnership (limited partnership)
Guangzhou Boyue Refers to Guangzhou Bo Yuejin Venture Capital Partnership (limited partnership)
Jinxin Investment Refers to Lanxi Jinxin Investment Management Co., Ltd.
Changxing Junying Refers to Changxing Junying Eqkuity Investment Partnership（LP）
Huaiji Investment Refers to Hangzhou Huaiji Investment Management Co., Ltd.
Jinhang Investment Refers to Hangzhou Jinhang Investment Fund Partnership（LP）
Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project
Line 5 Refers to TFT-LCD polarizer II phase Line 5 project
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Line 7 Refers to Industrialization project of polaroid for super large size TV
“CSRC” Refers to China Securities Regulatory Commission
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2022 Annual Report
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to 2022 Annual Report
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2022 Annual Report
II. Company Profile & Financial Highlights
1.Company Profile
Stock abbreviation Shen Textile A ,Shen Textile B Stock code 000045、200045
Modified stock ID (if any) No
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE(HOLDINGS)CO.,LTD
English abbreviation (If any) STHC
Registered address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the Registered Address 518031
Historical change of the company's
No
registered address
Office Address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the office address 518031
Internet Web Site http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenzhen Textile Building, No.3 Huaqiang North 6/F, Shenzhen Textile Building, No.3 Huaqiang
Contact address
Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
3. Information disclosure and placed
Securities Times, China Securities, Shanghai Securities
Newspapers selected by the Company for information disclosure
Daily and Hongkong Commercial Daily.
Internet website designated by CSRC for publishing the Annual
www.cninfo.com.cn
report of the Company
The place where the Annual report is prepared and placed Office of the Board of directors
4.Changes in Registration
Unified social credit code 91440300192173749Y
In July 2012, The business scope of the company is changed to "production, textiles processing,
knitwear, clothin
g, upholstery fabrics, belts, trademark bands, handicrafts (without restrictions); general
merchandise, the special equipment of the textile industry, textile equipment and accessories,
instruments, standard parts, raw textile materials, dyes, electronic products, chemical products,
Changes in principal
mechanical and electrical equipment, light industrial products, office supplies and domestic trade
business activities since
(excluding the franchise, the control and the monopoly of goods) ; operation of import and export
listing (if any)
business."
In December 2018, approved by Shenzhen Market Supervisory Authority, the company's business
scope was changed to: production and operation of polarizers and other optical film products; hotel
and property leasing and management; production and processing of textiles, knitwear, clothing,
and decorative fabrics , Belts, trademark belts, handicrafts (excluding restricted items); department
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2022 Annual Report
stores, special equipment for the textile industry, textile equipment and accessories, meters,
standard parts, textile raw materials, dyes, electronic products, chemical products,
electromechanical equipment, textile products, office Supplies and domestic trade (excluding
franchise, control, and monopoly commodities); import and export business.
In October 2004,In accordance with the Decision on Establishing Shenzhen Investment Holdings
Co., Ltd. issued by State-owned Assets Administration Committee of Shenzhen Municipal
Changes is the controlling
People's Government (Shen Guo Zi Wei (2004) No. 223 Document), Shenzhen Investment
shareholder in the past (is
Management Co., Ltd., the controlling shareholder of the Company, and Shenzhen Construction
any)
Holding Company and Shenzhen Commerce and Trade Holding Company merged into Shenzhen
Investment Holdings Co., Ltd.
5. Other Relevant Information
CPAs engaged
Deloitte Touche Tohmatsu CPA Ltd.(special general
Name of the CPAs
partnership)
Office address： 30/F, No.222,Yanan East Road, Qingpu District, Shanghai
Names of the Certified Public Accountants as the signatories Xu Xiangzhao, Yao Ming
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
6.Summary of Accounting data and Financial index
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
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(%)
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Changed over
End of 2021 last year End of 2020
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）
Reasons for changes in accounting policy and correction of accounting errors
（1）Reasons for changes in accounting policy
On December 30, 2021, the Ministry of Finance issued the No. 15Interpretation of Accounting Standards for
Business Enterprises (hereinafter referred to as "No. 15Interpretation"), which standardizes the accounting
treatment of products or by-products produced by enterprises before they reach the intended state of use or during
the research and development process.
The No. 15Interpretation stipulates that if an enterprise sells products or by-products produced before the fixed
assets reach the intended state of use or during the R&D process, it shall separately account for the income and
costs related to the trial operation sales in accordance with the revenue standard and the " No. 1Accounting
Standard for Business Enterprises-Inventory", and include them in the profit or loss of the period, and shall not
use the net amount of the income related to the trial operation sales after offsetting the costs to write down fixed
assets or R&D expenses. Meanwhile, the enterprise shall separately disclose in the notes the relevant revenue and
cost amounts of the trial operation sales, the specific presentation items, and the important accounting estimates
used in determining the costs related to the trial operation sales. The provisions came into force on January 1,
2022, therefore the retrospective adjustments shall be made for trial sales that occurred between the beginning of
the earliest period of presentation of the financial statement 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
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".
The lower of the company's net profit before and after deducting non recurring gains and losses in the last three
accounting years is negative, and the audit report of the latest year indicates that there is uncertainty in the
company's ability to continue as a going concern
□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
□ Yes √No
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2022 Annual Report
7. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
8.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
shareholders of the listed 17,625,745.18 24,807,779.92 14,115,950.48 16,759,707.36
company
Net profit after deducting of non-
recurring gain/loss attributable to
15,102,181.63 19,868,793.84 9,730,544.28 9,446,537.75
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
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2022) Amount (2021) Amount (2020) Notes
Non-current asset disposal gain/loss(including the
write-off part for which assets impairment 31,264.60 -961,982.35 273,229.58
provision is made)
Government subsidy recognized in current gain
and loss(excluding those closely related to the
26,350,210.89 19,643,379.33 29,506,252.69
Company’s business and granted under the state’s
policies)
Switch back of provision for depreciation of
account receivable which was singly taken 989,313.04
depreciation test.
Other non-business income and expenditures
7,516,025.10 19,964,046.87 1,310,556.26
other than the above
Less :Influenced amount of income tax 5,589,310.62 6,025,891.12 53,313.37
Influenced amount of minor shareholders’
9,147,064.53 13,096,494.74 11,853,336.46
equity (after tax)
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Total 19,161,125.44 20,512,371.03 19,183,388.70 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
Polarizers are also known as polaroid, which can control the polarization direction of specific light beams.
When natural light passes through the polarizer, the light whose vibration direction is perpendicular to the
transmission axis of the polarizer will be absorbed, leaving only polarized light whose vibration direction is
parallel to the transmission axis of the polarizer. The downstream polarizer is mainly used in the panel
industry. According to different panel types, polarizers mainly include TN, STN, TFT and OLED. Currently,
the global polarizer market is dominated by polarizers for TFT-LCD panels. Each LCD panel requires two
polarizers.
The Company is one of the major R&D, production and sales enterprises of polarizers in China, and the
leading enterprise of polarizer industry in China. The Company's polarizer is one of the key basic materials
in the display panel industry, and its demand is greatly affected by the fluctuation of the display panel
market. In 2022, due to the complex and volatile situation at home and abroad, the ongoing war between
Russia and Ukraine, and the combination of global inflation, the panel industry experienced a wave of
continuous downward revision. In the second half of the year, in the panel factory continues to adjust the
dynamic, inventory strategy, the panel market began to improve in the fourth quarter, and is expected to
further recover in 2023.
II.Main Business the Company is Engaged in During the Report 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, The company has overcome the adverse
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2022 Annual Report
effects to complete the project construction , 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.Company's business model
The polarizer industry has gradually shifted from a traditional business model of R&D, production, and
sales to a customer-centric, joint research and development, and comprehensive service business model.
By understanding customer needs, joint research and develop, manage high-standard production,
manufacture high-quality products, use advanced polarizer roll and attaching equipment to cooperate
with downstream panel manufacturers' production lines, reduce production links, reduce production and
transportation costs, and create value for customers, win-win.
4. Major factors for driving the Company's performance
Refer to "III. Analysis on core competitiveness" in this section for details.
5. Market position of company products
Currently, the Company is one of the major R&D, production and sales enterprises of polarizers in
China, and is the leading enterprise in the domestic polarizer industry. The Company mainly focuses on
medium and large-sized polarizer products, and meanwhile has the production capacity of multi-size
and multi-series products.
In the future, the Company will further adjust and optimize the product structure and customer
structure, improve the internal management level, optimize and upgrade the production technology level,
improve the production efficiency and product quality, broaden the procurement channels, reduce the
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2022 Annual Report
production cost and consolidate; On the other hand, the Company promoted the work related to the
major asset restructuring, realized the strong alliance in the polarizer industry, rapidly increased the
production scale of polarizers, optimized the Company's industrial chain layout in the polarizer industry,
enhanced the technical reserves, and further improved the Company's core competitiveness.
6. Advantages and disadvantages in competition
(1) Competitive edge
See "III. Analysis of core competitiveness" in this chapter for details.
(2) Competitive disadvantage
See "XI. Future development prospect of the Company (III) Possible risks" in this chapter for details.
III. Analysis On core Competitiveness
1.Technology advantages. SAPO Photoelectric is the first domestic national high-tech company which
entered into the R&D and production of the polarizer，We are one of the largest, most technical and
professional polarizer R&D teams in the country and has more than 20 years of operating experience in
the polarizer industry. Products include TN-type, STN-type, IPS-TFT-type, VA-TFT-type, OLED,
vehicle-mounted industrial display, flexible display, 3D stereo and polarizer for sunglasses, and optical
film for touch screens, etc.,We have proprietary technology for polarizers and new intellectual property
rights for various new products. As of the end of this report , SAPO Photoelectric applied for 127
invention patents and was authorized with 100 items(68 valid patents), among which: 40 domestic
invention patents(18 patents got authorized, 18 valid patents); 80 domestic utility model patents(78
patents got authorized,48 valid patents,); 1 overseas invention patent(0 patents got authorized); 6
overseas utility model patents(4 patents got authorized, 2 valid patents). There were 4 national standards
and 2 industrial standards that were developed by the company are approved and then will be
implemented. will be implemented. SAPO Photoelectric has three innovative platforms: Guangdong
Engineering Technology Research Center, Shenzhen Polarizing Materials and Technology Engineering
Laboratory and Shenzhen Enterprise Technology Center. It focuses on the R&D and industrialization of
LCD polarizer core production technology, the development and industrialization of OLED polarizer
new products, and the localization research of polarizer raw materials, among which, mass production
has been achieved for OLED TV polarizer products successfully, filling the domestic gap. By
introducing all kinds of precision test equipment, it improves lab trial and pilot-scale test methods, and
builds a collaborative innovation platform for Industry-University-Research cooperation, to enhance the
R&D level comprehensively.
2. Talents advantages.The Company emphasizes the independent innovation, establishes its own R & D
management system, and has a polarizer management team and a senior technical personnel team with
strong technical ability, rich experience and international vision. Through the establishment of technical
cooperation with the world's leading polarizer manufacturer Nitto Electric Co., Ltd, it has learned the
advanced polarizer production management concepts, and meanwhile accumulated the technical
experience through independent innovation, improved its core competitiveness, and gradually shaped its
own brand, technology, operation management and other advantages. In 2022, the Company continued
to deepen the market-oriented reform, practice the concept of " Don't race horses", selected a group of
middle-level management cadres with strong professional ability and high degree of marketization for
the Company, and further strengthened the core backbone team; Also, the Company Improved the talent
growth channel and the reserve talent echelon construction mechanism, regularly organized and carried
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2022 Annual Report
out the employee grade evaluation, talent-pool work and other work to help employees grow and
develop; it improved the assessment incentive mechanism, and gave a play to the incentive and spurring
role of assessment; The Company actively explored the long-term incentive constraints of the
Company's management layer and the employee benefit reward distribution mechanism, the employee
stock ownership plan, etc., thus to build a value distribution mechanism for benefit sharing and risk
sharing.
3.Market advantages. The company has good customer groups not only in domestic market but in
foreign market, compared with foreign advanced counterparts, the biggest advantage lies in the
localization for supporting, close to the panel market, as well as the strong support of the national policy.
In terms of market demand, with the mass production of the 10.5/11-generation TFT-LCD panel
production lines under construction and planned for the next few years, the production capacity of high-
generation TFT-LCD panels in mainland China will increase significantly in the next few years, the
corresponding domestic polaroid film market demand has also increased, and the domestic market is the
most important market for polaroid manufacturers, especially in the large-size polarizer market.
Mainland polarizer manufacturers will usher in important industry opportunities; in terms of market
development, the company takes production material control as the core, technology services as the
guide, customer needs as the focus, organically combines production and sales, establishes a rapid
response mechanism, fully exploits localization advantages, and uses its own accumulated technology
and talents, does a good job of peer-to-peer professional services, forms a stable supply chain and
increases market share. Meanwhile,the Company used the capital market to carry out asset restructuring,
implemented the Company's development strategy, and seized important market opportunities to
become better and stronger.
4. Quality advantages. The Company always adheres to the principle of "Meeting customer needs and
pursuing excellent quality; Implement green manufacturing and achieve continuous improvement"
quality policy, centering on the product quality control to enable its products comparable to
international quality standards. The Company strictly controls product performance indicators,
standardizes incoming inspection standards, and takes quality improvement and consumption reduction
as the starting point to achieve simultaneous improvement of output and quality; It hasintroduced
modern management system, passed the ISO9001 quality management system, ISO14001
environmental management system, ISO450001 occupational health and safety management system,
QCO80000 hazardous substance management system and ISO50001 energy management system
certification; The products have passed CTI testing, and it complies with the environmental protection
requirements of RoHS directive, and the whole process is standardizedfrom raw material supply,
manufacturing, marketing to customer service to ensure the stability of product quality.
5.Management advantages. The company always adhered to the quality policy of "Satisfying customer
demands and pursuing excellent quality" and focused on product quality control. The company strictly
controls product performance indicators, standardizes inspection standards for incoming materials, starts
with quality improvement and consumption reduction, and achieves simultaneous increase in output and
quality; through the introduction of a modern quality management system, the products have passed
ISO9001 Quality Management System and ISO14001 Environmental Management System,
OHSAS18000 Occupational Health and Safety Management System, QCO80000 System Certification;
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2022 Annual Report
the product is tested by SGS and meets the environmental protection ,The company had increased the
automatic detecting and marking equipments in the beginning section and the ending section, strictly
controlled the product quality and improved the product utilization rate and product management
efficiency.
Through the implementation of the key work management list of "Solid Party Building +, Lean
Promotes Development", it used the lean means to achieve continuous cost reduction and efficiency
increase; Through the implementation of the "Amoeba Business Model" project and segmenting small
independent accounting unit to enable grassroots backbone employees can participate in production and
operation activities.
6.Policy advantages. Polarizer is seen as an essential part of the panel display industry and SAPO
Photoelectric in its development has promoted the supply capacity of national polarizers, greatly
lowered the dependence of national panel enterprises on imported polarizers, and safeguarded the
national panel industry, which serves as a good facilitator to enhancing the overall competitiveness of
China's panel industry chain and coordinated development of the whole industry chain of the panel
display industry cluster in Shenzhen. Recognized as a national high-tech enterprise, the Company is
entitled to the preferential policy for duty-free import of own productive raw materials that cannot be
produced at home and frequently gained national, provincial and municipal policy and financial support
in its polarizer projects. Meanwhile, the Company tightened supplier management, improved its overall
purchasing strategy, and downsized suppliers while introducing a competitive mechanism, wherein
focus was given to introduction of new materials at a competitive price, to further lower its production
cost and improve its product competitiveness.
IV. Main business analysis
Ⅰ.General
The year of 2022 is a key year for the "14th Five-Year Plan" and a year for the Company to continue to
deepen reform and improve business quality. Over the past year, in the face of severe and complex
economic situation, the Company has strengthened confidence, united and worked hard to overcome
difficulties together, and new progress has been made in polarizer production and operation,
technological innovation, lean management of enterprises, improvement of internal control mechanism,
potential exploitation of property leasing, and asset revitalization and withdrawal, thus laying a solid
foundation for the Company's further transformation and development.
During the reporting period, the Company achieved an operating income of 2.838 billion yuan, a YOY
increase of 21.80%; The total profit was 44,348,800 yuan, a YOY decrease of 42.54%; The net profit
attributable to shareholders of the listed company was 73,309,200 yuan, a YOY increase of 31.54%.
The Company's total profit decreased compared with the same period last year, which was mainly due
to: affected by the continued weakening of the LCD TV panel market, the price of polarizers gradually
declined in 2022, coupled with the large consumption on ground of the ramp-up mass production of the
newly put-into production of the ultra-large size TV polarizer industry project (Line 7), the Company
made impairment provisions for inventory and other assets based on expected future net cash flows. The
Company's operating income and net profit attributable to shareholders of the listed company increased
compared with the same period of the previous year, which was mainly due to: First, the release of the
Company's No. 7 line production capacity, the overall revenue growth of polarizer business. Second,
16
2022 Annual Report
based on the Group's future profit forecast, the Company considered that it can generate sufficient
taxable income in the future period to take advantage of deductible temporary differences and
deductible losses to meet the conditions for recognition of deferred tax assets, therefore it recognized
relevant deferred tax assets while reducing income tax expense.
Review of the company's key works carried out in 2022 as follows:
(1)Further improvement of polarizer business operation capability
In 2022, First, the Company actively adjusted the product structure, improved the structure of the main
proportion of single large customer, enhanced the anti-risk ability of orders, implemented the policy of
"production utilizationguarantee", and seized the market share; The second was to strengthen production
management, formulate lean management plans, continuously improve production capacity and yield,
reduce losses, and ensure order delivery; Third, it strengthened the innovation drive, focused on
promoting the construction of SAPO's R&D management system, created a market-oriented innovation
mechanism, strengthened the technical research, and builtthe differentiated competitive advantages;
Fourth, the Company comprehensively promoted the selection and recruitment of market-oriented
talents, released the development vitality, and enhanced the team competitiveness .
The Company has built a research and development management system, strengthened the research and
development of new products, new materials, production processes and the introduction of alternative
raw materials, and it’s authorized with 8 patents, including 1 invention patent and 7 utility model
patents in2022.
(2) Survival in the difficult situation of the textile business and keeping stable development under the
pressure of property leasing and management business
In 2022, affected by the superposition of factors such as the international situation, the clothing
consumer market was weak, the textile and garment industry were hit hard, therefore the orders of
Shenzhen Beauty Century Company decreased, and the operating efficiency declined.
In 2022, the property leasing and management business faced unprecedented operating pressure under
the impact of the downturn in the real economy. The Company had spared no effort to do well in
leasing operation, vigorously promoted the operation cost reduction and efficiency increase, innovated
and tapped into, broadened the resources and saved costs, continuously improved the service
quality,increased the property management efforts, thus realized the stable development of property
leasing and management business.
(3) The production capacity of Line 7 is gradually released, helping the overall improvement of the
company's operating performance
In 2022, the Company overcame the adverse impact of the market downturn, went all out to improve
the production and operation of Line 7, and focused on improving production capacity, yield and
management level. At present, the production capacity of Line 7 has been steadily increased, and the
three RTP production lines are comparable to the first-class level in the industry; In terms of
management, through the introduction of amoeba operation and management mode, it segmented the
accounting unit into small unit, focused on details, highlighted the process incentives, and stimulated
the employees' awareness of independent improvement. As of December 31, 2022, the technical
indicators such as yield rate and loss rate of Line 7 have continued to be improved, the main products of
Line 7 have completed the customer verification, the order volume has gradually increased, the unit
manufacturing cost of products has gradually decreased, and the production and operation of Line 7
17
2022 Annual Report
have achieved substantial loss reduction, thus helped the Company's overall business performance to
improve.
(4) Implementing major asset restructuring matter and promoting the development with cohesion
On December 30, 2022, the Company held the 19th meeting of the 8th Board of Directors and the 13th
meeting of the 8th Board of Supervisors, in which it deliberated and passed the "Proposal on Shenzhen
Textile (Holdings) Co., Ltd’s Issuance of Shares and Payment of Cash to Purchase Assets and Raise
Matching Funds Namely the Related Party Transaction Plan and its Summary" and other proposals
related to this transaction, planning to purchase 100% of the equity of Hengmei Optoelectronics Co.,
Ltd by issuing shares and paying cash. Meanwhile, it intended to raise matching funds from the non-
public offering of shares to no more than 35 eligible specific targets (hereinafter referred to as the
"Transaction"). The transaction constituted a related party transaction and was expected to constitute a
major asset restructuring, but it did not constitute a restructuring and listing, nor led to a change in the
actual controller of the Company. The transaction was conducive to the main business to coordinate
system resources, realize a strong alliance in the polarizer industry, rapidly increase the production scale
of polarizers, optimize the Company's industrial chain layout in the polarizer industry, deepen the depth
of technical reserves, and further enhance the Company's core competitiveness.
(5) Strengthening the safety awareness and soundly doing well in safety and environmental protection
work
The Company attached great importance to safety production management, strengthened the bottom-
line thinking, overcame paralyzing thinking and fluke mentality, and strictly implemented the work.First,
it established and improved the responsibility system for safe production, revised and improved the
safety production management system, carried out safety education and training, organized emergency
drills, and improved the emergency handling and safety management of safety incidents; Second, it
carried out the safety risk control and hidden danger investigation and rectification, implemented the
safety production, supervision and inspection of key projects and places, carried out daily safety
inspection and patrol of each affiliated enterprise, and rectified potential safety hazards in a timely
manner; Third, the Company actively implemented the safety and environmental protection upgrading
and transformation, practiced the sustainable development production concept of green environmental
protection, energy conservation and consumption reduction, and continued to save energy and reduced
emissions.
(6) Consolidating the basis and capabilities, and constantly enhancing the grass-roots Party building
work
In 2022, under the strong leadership of Shenzhen SasAC Party Committee and Shenzhen Investment
Control Party Committee, the Company’s party committee adhered to the guidance of Xi jinping of new
era of socialism with Chinese characteristics, further implemented the20thCPC party spirit,
unswervingly strengthened the party's construction, strictly carried out the party history education,
strengthened the construction of party conduct and clean government, soundly carried out the party
research, deeply analyzed the current problems and difficulties faced by the management, thus to lead
the Company to high quality development.
18
2022 Annual Report
2. Revenue and cost
(1) Component of Business Income
In RMB
2022 2021
Increase /decrease
Amount Proportion Amount Proportion
Total operating revenue 2,837,988,264.36 100% 2,330,061,681.00 100% 21.80%
On Industry
Manufacturing 2,722,034,654.94 95.91% 2,190,735,918.29 94.02% 24.25%
Lease and Management
80,168,785.00 2.82% 111,568,500.55 4.79% -28.14%
of Property
Other 35,784,824.42 1.27% 27,757,262.16 1.19% 28.92%
On Products
Lease and Management
80,168,785.00 2.82% 111,568,500.55 4.79% -28.14%
of Property
Textile 28,247,018.32 1.00% 54,932,578.58 2.36% -48.58%
Polarizer sheet 2,693,787,636.62 94.92% 2,135,803,339.71 91.66% 26.13%
Other 35,784,824.42 1.26% 27,757,262.16 1.19% 28.92%
Area
Domestic 2,722,632,231.25 95.94% 2,075,939,546.10 89.09% 31.15%
Overseas 115,356,033.11 0.04% 254,122,134.90 10.91% -54.61%
Sub-sale model
Credit 2,642,221,654.15 93.10% 2,190,735,918.29 94.02% 20.61%
Cash on sale 195,766,610.21 6.90% 139,325,762.71 5.98% 40.51%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and
Operating Profit with Profit over 10%
√ Applicable □Not applicable
In RMB
Under circumstances of adjustment in reporting period for statistic scope of main business data,
Increase/decre
Increase/decre
ase of Increase/decrease
ase of revenue
Gross business cost of gross profit rate
in the same
Turnover Operation cost profit over the same over the same
period of the
rate(%) period of period of the
previous
previous year previous year (%)
year(%)
(%)
On Industry
Manufacturing 2,722,034,654.94 2,350,898,811.44 13.63% 24.25% 25.33% -0.75%
Lease and
Management of 80,168,785.00 22,508,188.92 71.92% -28.14% -2.12% -7.47%
Property
On Products
Polarizer sheet 2,693,787,636.62 2,317,753,534.46 13.96% 26.13% 26.85% -0.49%
Lease and
Management of 80,168,785.00 22,508,188.92 71.92% -28.14% -2.12% -7.47%
Property
Textile 28,247,018.32 33,105,714.00 -17.20% -48.58% -31.76% -28.88%
Area
Domestic 2,722,632,231.25 2,278,870,111.08 16.30% 31.15% 34.75% -2.23%
Overseas 115,356,033.11 95,135,785.35 17.53% -54.61% -55.92% 2.45%
Sub-sale model
Credit 2,642,221,654.15 2,196,484,523.29 16.87% 20.61% 17.10% 2.49%
Cash on sale 195,766,610.21 177,521,373.14 9.32% 40.51% 467.74% -68.24%
19
2022 Annual Report
adjusted main business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3) Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2022 2021 Changes
Sales 10,000 square meters 3,537.08 2,517.63 40.49%
Polarizer sheet Production 10,000 square meters 3,518.80 2,518.62 39.71%
Stock 10,000 square meters 112.41 139.51 -19.43%
Sales 10,000 pieces 131.00 269.00 -51.30%
Knitted clothing Production 10,000 pieces 144.00 280.00 -48.57%
Stock 10,000 pieces 52.00 91.00 -42.86%
Explanation for a year-on –year change of over 30%
Applicable □Not applicable
During the reporting period, the sales volume and production of polarizer increased by 40.49% and
39.71% year on year, mainly due to the release of production capacity and sales increase of Line 7;
The sales volume and production of knitted clothing decreased by 51.30% and 48.57% year on year,
mainly caused by the decline of knitting sales orders; inventory decreased by 42.86% year on year,
mainly caused by inventory digestion.
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
In RMB
2022 2021
Proportion Proportion Increase
Industry
Items in the in the /Decreas
classification Amount Amount
operating operating e (%)
costs (%) costs (%)
Polarizer sheet,
Manufacturing 2,350,898,811.44 99.03% 1,875,725,423.97 98.36% 0.67%
Knitted clothing
Lease and
Rental，
Management of 22,508,188.92 0.95% 22,996,155.29 1.21% -0.26%
Accommodation
Property
Other Other 598,896.07 0.02% 8,272,084.49 0.43% -0.41%
Production category
Producti 2022 2021
on Proportion in the Proportion in the Increase/De
category Items
Amount operating costs Amount operating costs crease (%)
(%) (%)
Direct
polarizer 1,825,615,761.47 76.90% 1,431,786,820.80 75.08% 1.82%
material
Direct
polarizer 61,855,540.37 2.61% 54,411,427.47 2.85% -0.24%
labor
Power
polarizer 68,806,666.73 2.90% 47,506,506.32 2.49% 0.41%
cost
polarizer Manufac 361,515,128.87 15.23% 293,147,731.77 15.37% -0.12%
20
2022 Annual Report
turing
expenses
Knitted Direct
10,220,036.69 0.43% 29,157,370.18 1.53% -1.10%
garment material
Knitted Direct
10,866,298.04 0.46% 9,659,820.67 0.51% -0.05%
garment labor
Knitted Power
2,730,422.72 0.12% 968,232.62 0.05% 0.07%
garment cost
Manufac
Knitted
turing 9,328,519.53 0.39% 8,728,504.05 0.46% -0.07%
garment
expenses
Note
None
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□ Yes √ No
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of Main Customers
Total sales amount to top 5 customers (RMB) 1,540,435,366.03
Proportion of sales to top 5 customers in 54.28%
Proportion of the sales volume to the top five customers in the
0.00%
total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion(%)
1 Customer 1 575,452,006.16 20.28%
2 Customer 2 261,292,160.18 9.21%
3 Customer 3 256,175,900.10 9.03%
4 Customer 4 245,813,155.60 8.66%
5 Customer 5 201,702,143.99 7.10%
Total -- 1,540,435,366.03 54.28%
Other note
□ Applicable √ Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 824,763,279.45
Percentage of total purchase of top 5 suppliers In total annual
40.36%
purchase(%
Proportion of purchase amount from the top 5 suppliers in the
0.00%
total purchase amount from the related parties in the year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion(%)
1 Supplier 1 193,219,755.99 9.45%
2 Supplier 2 186,856,036.60 9.14%
3 Supplier 3 165,029,417.05 8.08%
4 Supplier 4 146,726,838.02 7.18%
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2022 Annual Report
5 Supplier 5 132,931,231.80 6.51%
Total -- 824,763,279.45 40.36%
Other note
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/De
2022 2021 Notes
crease(%)
Sale expenses 35,962,529.35 37,973,336.39 -5.30%
Administrative
128,388,940.29 122,088,830.15 5.16%
expenses
Financial Mainly due to there’s no interest
12,943,606.57 -130,344.09 10,030.34%
expenses capitalization in the current period.
Mainly due to the decrease in investment in
R & D expenses 80,520,155.54 103,508,764.53 -22.21%
R&D materials.
4. Research and Development
√ Applicable □ Not applicable
Name of main R&D Project Expected impact on the future development
Project purpose Goal to be achieved
project progress of the Company
The wide-width line
has the mass
production capacity,
Wide-width APF improving cutting Complete Realize mass It’s technical reserves by the Company, ,
product development utilization and d production and will enhance the competitiveness.
responding to the
demand for medium
size.
shorten the gap between domestic polarizer
Ultra-thin IPS Mobile Development of a
Complete Realize mass technology and the first echelon. increase
phone product thin IPS mobile
d production the share and influence of domestic
development phone products
polarizers
High-transparency The product reaches the same level as the
Increase in mass- Complete realize mass
OLED TV product competitive products,, which will pave the
produced models d production
development way for the Company's future revenue.
Realize
OLED Mobile phone Complete realize mass fill domestic gaps, and enhance the
domestication of
product development d production Company's industry status
products
Increase cutting In line with the development trend of large-
Development of utilization and screen TV in the market, it can effectively
polarizers for increase Complete Realize mass improve the utilization rate of product
2500mm ultra-width opportunities for d production cutting, reduce the unit cost of materials,
TV products larger size mass improve product competitiveness and create
production greater profit margins:
Alleviate the tight
supply of VA
SANUQI product Complete Realize mass Enriching the product categories, can
compensation film
development d production alleviate the tight supply of raw materials.
and increase
product selectivity
Ultra-width high-end
Complete Pass customer Enrich product categories, provide more
IPS TV AGLR Market demand
d verification choices to the customers.
product development
22
2022 Annual Report
Increase the opportunity for products to
enter the high-end application field, pave
High-contrast MNT Partially Pass customer
Market demand the foundation for more revenue for the
product development completed verification
Company in the future, and also establish
brand effect
Localized
Get mass
development of ultra- Localization of raw Complete Break the monopoly of imported materials,
production
width display optical materials d stabilize the supply of raw materials.
capabilities
film
It will help accelerate the Company's
strategic transformation and upgrading.
Touch integrated Add polarizer touch Partially Pass client
Enhance innovation capabilities, broaden
polarizer development function completed verification
business scope and scale, and enhance
profitability
Development of UV Diversify materials selection,also can
Improve product Partially Mass production
glue for ultra-width improve product performance, increase the
performance completed introduction
hydrophobic materials opportunity to enter the high-end market.
it fills the gap in the Company's thin NB
Wide-width thin NB Complete Realize mass polarizer market, increases product
Market demand
product development d production diversity, and establishes industry
benchmarks.
Development of
polarizers for energy- Complete
Market demand Mass production improve product competitiveness.
efficient mobile d
phones
Wide-width IPS
Improve cutting Capable of mass Reduce costs, improve yield, and lay a solid
Mobile phone high- Unfinishe
utilization and production and foundation for IPS products to enter the
transparency Pro d
reduce costs supply supply system of panel factories.
product development
Development of wide- Promote the production line utilization,
Improve cutting
width industrial Complete Realize mass improve production capacity while
utilization and
control consumer d production reducing production costs, and improve
reduce costs
goods market competitiveness
Enhance the competitiveness of the
Thin-profile diffusion Company's products in the high-end tablet
Enrich product Partially Realize mass
brightening product and high-end IPS mobile phone market, and
categories completed production
development effectively consolidate the Company's
polarizer market in China.
Company's research and development personnel situation
2022 2021 Increase /decrease
Number of Research and
Development persons 184 145 26.90%
(persons)
Proportion of Research and
12.00% 10.61% 1.39%
Development persons
Academic structure of R&D personnel
Age composition of R&D personnel
The Company's R & D investment situation
2022 2021 Increase /decrease
Amount of Research and Development
80,520,155.54 103,508,764.53 -22.21%
Investment (In RMB)
Proportion of Research and Development
2.84% 4.44% -1.60%
Investment of Operation Revenue
Amount of Research and Development
0.00 0.00 0.00%
Investment Capitalization (In RMB)
Proportion of Capitalization Research and
Development Investment of Research and 0.00% 0.00% 0.00%
Development Investment
23
2022 Annual Report
Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying
the Business Income Year on Year
□ Applicable √Not applicable
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable
5.Cash Flow
In RMB
Items 2022 2021 Increase/Decrease(%)
Subtotal of cash inflow
received from operation 3,378,370,114.97 2,433,304,906.36 38.84%
activities
Subtotal of cash outflow
received from operation 2,888,131,564.37 2,437,741,886.71 18.48%
activities
Net cash flow arising from
490,238,550.60 -4,436,980.35 11148.92%
operating activities
Subtotal of cash inflow
received from investing 1,362,677,014.25 1,154,092,748.71 18.07%
activities
Subtotal of cash outflow for
1,263,644,263.66 1,412,622,193.08 -10.55%
investment activities
Net cash flow arising from
99,032,750.59 -258,529,444.37 -138.31%
investment activities
Subtotal cash inflow received
73,230,492.79 339,219,000.00 -78.41%
from financing activities
Subtotal cash outflow for
92,382,872.47 50,944,964.13 81.34%
financing activities
Net cash flow arising from
-19,152,379.68 288,274,035.87 -106.64%
financing activities
Net increase in cash and cash
572,066,400.74 24,071,196.77 2,276.56%
equivalents
Notes to the year-on-year change of the relevant data
Applicable □Not applicable
increased by 11,148.92% year on year, mainly due to the release of production capacity, the increase of
sales volume and the recovery of payment after Line 7 was put into operation;
The net cash flow generated by investment activities decreased by 138.31% year on year, mainly due to
the lack of large investment projects in the current period;
The net cash flow generated by financing activities decreased by 106.64% year on year, mainly due to
the lack of large financing projects in the current period;
The net increase of cash and cash equivalents increased by 2,276.56% year on year, mainly due to the
release of production capacity, the increase of sales volume and the recovery of payment after line 7
was put into operation.
The reasons for the significant difference between the net cash flow generated by the company's
operating activities during the reporting period and the net profit of the current year
Applicable □ Not applicable
During the reporting period, the net cash flow generated by the company's operating activities was
490238550.60 yuan, and the net profit in the company's consolidated statements was 111791966.32
yuan. There was a significant difference between the two, mainly due to the release of production
24
2022 Annual Report
capacity and the increase in sales after the production of Line 7, as well as the early payment collection
by customers. For the difference between the net cash flow generated by the company's operating
activities and the net profit in the consolidated statements during the reporting period, see "(VI) Notes to
Financial Statements Item 55 (1) Supplementary Information to the Cash Flow Statement" in "Section X
Financial Report" of this report.
Reasons of major difference between the cash flow of operation activity in report period and net profit
of the Company
√ Applicable □ Not applicable
Company and the net profit of the consolidated statement is detailed in the "VII. Notes of the
Consolidated Financial Statement 55 (1) Supplementary Data of the Cash Flow Statement" in the
"Section X Financial Report" of this report..
V.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Amount Proportion in total profit Explanation of cause Sustainable (yes or no)
Obtained dividends,
contracting fees, wealth
Investment income 19,383,351.87 43.71% Have the sustainability
management income, etc.
of shareholding enterprises
Gains and losses on
0.00 0.00%
changes in fair value
Mainly due to inventory
price decline losses and
Impairment of assets -202,573,465.84 -456.77% Have the sustainability
fixed asset impairment
losses
Mainly due to the
insurance claim settlement
Non-operating income 14,993,082.57 33.81% amount and the write-off Not sustainable.
of other payables of the
cancelled enterprises.
Mainly due to the payment
Non-operating expense 7,477,057.47 16.86% Not sustainable.
for product quality claims.
Mainly due to the
Other income 26,350,210.89 59.42% Have the sustainability
government subsidies.
VI.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2022 End of 2021
Propor
Proporti Proporti tion
on in the on in the increa Notes to the significant change
Amount total Amount total se/dec
assets(% assets(% rease
) )
Mainly due to the increase in
collection result from increase in
Monetary fund 991,789,968.19 17.66% 302,472,828.60 5.44% 12.22%
business volume and the
reclassification adjustment of large
25
2022 Annual Report
certificates of deposit
Mainly due to the mass production
Accounts
636,583,469.93 11.33% 479,998,708.57 8.63% 2.70% of Line 7 and the growth of
receivable
business scale.
Contract assets 0.00% 0.00% 0.00%
Manly due to the increase in sales
resulting in a decrease in ending
Inventories 558,447,648.77 9.94% 743,401,857.74 13.36% -3.42% inventory and an increase in
provision for inventory impairment
compared to the prior year.
Investment real
126,315,834.76 2.25% 125,251,851.43 2.25% 0.00%
estate
Long-term equity
134,481,835.74 2.39% 133,022,325.77 2.39% 0.00%
investment
Fixed assets 2,240,221,656.36 39.88% 2,396,658,988.81 43.08% -3.20% Mainly due to depreciation of assets
Construction in
38,061,619.60 0.68% 71,482,031.08 1.28% -0.60%
process
Use right assets 15,365,393.88 0.27% 9,221,189.37 0.17% 0.10%
Mainly due to the increase in
Short-term loans 7,000,000.00 0.12% 37,575,113.83 0.68% -0.56% discounted financing for acceptance
bills
Contract liabilities 4,274,109.40 0.08% 68,955.21 0.00% 0.08%
Mainly due to the reclassification of
Long-term some borrowings to non-current
607,421,585.00 10.81% 683,016,243.25 12.28% -1.47%
borrowing liabilities maturing within one year
and the repayment of borrowings.
Lease liabilities 8,628,672.71 0.15% 4,243,855.71 0.08% 0.07%
Mainly due to the reclassification
Transaction
319,605,448.44 5.69% 617,191,678.56 11.09% -5.40% adjustment of large certificates of
financial assets
deposit
Mainly due to the recovery of
Other receivable 10,585,975.38 0.19% 140,185,750.40 2.52% -2.33%
customs bonds
Mainly due to the increase in
Note receivable 74,619,100.26 1.33% 149,942,880.28 2.70% -1.37%
business volume
Mainly due to the recognition of
Deferred income
69,823,814.29 1.24% 3,708,596.78 0.07% 1.17% deferred tax assets for deductible
tax assets
losses
Non-current
Mainly due to the reclassification of
liabilities
104,183,438.22 1.85% 5,175,393.52 0.09% 1.76% some borrowings to non-current
becoming due
liabilities maturing within one year
within one year
Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/
Loss Impai
on fair rment
Cumulative
value provis Othe
fair value Purchased Sold amount in
Opening chang ions r Closing
Items change amount in the the reporting
amount e in in the chan amount
recorded into reporting period period
the report ges
equity
reporti ing
ng period
period
26
2022 Annual Report
Financial assets
1.
Financial
assets
measured
at fair
value
through 617,191,678.56 1,046,913,769.88 1,344,500,000.00 319,605,448.44
profit or
loss
(excluding
derivative
financial
assets)
4 ． Other
equity
Instrumen
186,033,829.72 -18,355,546.45 167,678,283.27
t
Investmen
t
Subtotal
of
803,225,508.28 -18,355,546.45 1,046,913,769.88 1,344,500,000.00 487,283,731.71
financial
assets
Total 803,225,508.28 -18,355,546.45 0.00 1,046,913,769.88 1,344,500,000.00 0.00 487,283,731.71
Financial
0.00 0.00
Liability
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
The restricted assets as at the end of the reporting period are monetary funds, notes receivable, fixed
assets and intangible assets, including: (1) The restricted monetary funds mainly include the restricted
funds equivalent to RMB 1,270,758.22 due to the freezing of the account, and RMB 115,719,927.09 of
the principal and interest of the deposit due more than three months from the date of purchase. (2)
Restricted notes receivable shall be notes receivable endorsed or discounted by the Company and not
yet due on the balance sheet date. (3) limited fixed assets and intangible assets are mainly subsidiary
ShengBo photoelectric with its part of self sustaining property to the bank of communications co., LTD.
Shenzhen branch as the lead of syndicated application for mortgage loans, and the company for the
mortgage guarantee, see the tide of information network (http://www.cninfo.com.cn) company on the
company for subsidiary bank mortgage guarantee announcement (2020-19), the announcement of the
progress of the company for the subsidiary guarantee (2020-46).
VII. Investment situation
1. General
□ Applicable √Not applicable
27
2022 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
None
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
None
√ Applicable □ Not applicable
VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the
Company
Main
Company Registere Operating
Type busines Total assets Net assets Turnover Net Profit
name d capital profit
s
Domest
Shenzhen ic
Subs
Lisi Trade,
idiar 2,360,000.00 35,604,904.10 28,949,771.53 5,475,185.16 -41,442.24 128,661.18
Industrial Propert
y
Co., Ltd. y
manage
28
2022 Annual Report
ment
Accom
modati
Shenzhen Subs
on, 10,005,300.0
Huaqiang idiar 22,784,535.53 20,788,399.17 695,901.49 430,701.87 420,194.28
busines 0
Hotel y
s
center;
Shenzhen
Shenfang
Propert
Real Subs
y
Estate idiar 1,600,400.00 12,052,572.09 7,840,357.61 14,329,188.47 969,156.38 889,312.58
manage
Managem y
ment
ent Co.,
Ltd.
Product
ion of
fully
Shenzhen
electron
Beauty Subs
ic 13,000,000.0
Century idiar 37,349,989.80 8,126,619.02 28,247,018.32 -12,022,403.47 -12,013,091.49
jacquar 0
Garment y
d
Co., Ltd.
knitting
whole
shape
Product
SAPO Subs ion and
583,333,333 4,349,764,538 2,942,964,174.1 2,735,055,209
Photoelect idiar sales of .00 .22 8 .89
25,175,118.83 96,071,520.48
ric y polarize
r
Shengtou Subs Sales of
（HK） idiar polarize HKD10,000 6,209,327.26 6,119,515.80 0.00 179,087.71 135,437.97
Co., Ltd. y r
Shenzhen
Shenfang
Sungang Propert
Subs
Real y
idiar 1,000,000 11,322,279.38 9,183,003.92 2,848,247.10 932,247.62 908,941.43
Estate manage
y
Managem ment
ent Co.,
Ltd.
Polariz
er
technol
ogy
develop
Shenzhen ment;
Shengjinli Subs self-
an idiar owned 1,000,000 0.00 0.00 0.00 0.00 0.00
Technolog y propert
y Co., Ltd. y
leasing;
propert
y
manage
ment
In RMB
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
29
2022 Annual Report
Note
The financial data of SAPO Photoelectric mentioned in the table above are the financial statements
data of its parent company and non-consolidated statements data. Shengtou（HK）Co., Ltd. and
Shenzhen Shengjinlian Technology Co., Ltd. are subsidiaries of SAPO Photoelectric.
For details of the fluctuation of subsidiary SAPO Photoelectric's performance and the reasons for the
change, please refer to "IV. Analysis of main business" in Section III Management Discussion and
Analysis.
X．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Prospect for future development of the Company
（I）The Development Trend of the Industry
1. Industry competition pattern
Polarizer industry is a highly concentrated industry. At present, there are about 10 major polarizer
manufacturers in the world, mainly in Japan, Chinese mainland, South Korea and Taiwan, China region.
With capacity shifting and the expansion of Chinese mainland manufacturers, Omdia predicts that
Chinese mainland will become the world's largest polarizer production base in the world in the next
three years.
2. Industry trends
In recent years, due to the continuous expansion of production capacity of major domestic panel
manufacturers and the rapid expansion of the demand for raw materials such as upstream polarizer, its
growth rate is far faster than the growth rate of production capacity investment of domestic polarizer
manufacturers, resulting in a supporting gap in China. Overseas manufacturers choose to gradually
shrink and exit, and there is a large space for domestic substitution, which is a better development
opportunity for the mainland polarizer manufacturers with market advantages, policy advantages and
geographical advantages.
(II) The Company's development strategy
Relying on the existing business foundation, the Company will actively explore the business
innovation and upgrading through the two paths of potential expansion of existing business and
incremental business investment empowerment, and vigorously implement the "polarizer plus" strategy;
Through major asset restructuring, it can optimize the Company's industrial chain layout in the polarizer
industry, deepen the depth of technical reserves, and further enhance the core competitiveness of the
listed company. While promoting the core business of polarizer to become better and stronger, it will
choose the opportunity to extend to upstream raw materials, promote the development of polarizer
integration business, and actively expand other advanced new material fields, thus to shape a world-
class new material technology group.
(III) Possible risks
1. Macroeconomic risks
30
2022 Annual Report
The impact of the economic, but it has not been completely eliminated; the economic vitality has
begun to recover, but the foundation of economic recovery is still not solid; the household consumption
is still constrained, and the domestic demand economy will continue to be under pressure. The
Company, as a member of the upstream manufacturers of the display market, can not rule out the risk
that unpredictable macroeconomic fluctuations may affect the Company's performance.
2. Market risk
The polarizer industry is an important part in the China's future manufacturing development, the
demand for display panels and the development of corresponding technologies have been changing day
by day, and the domestic substitution process of polarizer industry is underway. With the gradual mass
production of the 10.5 generation line, the super-large size market will usher in new changes.Where the
Company's technology and products can not respond to the needs of the application field in time, the
wide polarizer products or its applications are not as expected, or the market competition intensifies
leading to the price of display products declining, or the price reduction pressure transits to the polarizer
market, then those will adversely affect the Company.
3. Raw material risk
The core production technology of polarizer upstream materials has high barriers, which are basically
monopolized by foreign manufacturers, and the localization rate is not high. The key raw materials like
PVA film, TAC film and other optical films required for the manufacture of polarizers are basically
monopolized by Japanese enterprises, and the upstream matching raw material production line and
production technology are constrained by the Japanese side, and the main film material price is also
affected by supplier capacity, market demand and yen exchange rate, thus affecting the unit cost of the
Company's products.
(IV) Key Work in 2022
1. Continue to improve the profitability of the main business
Vigorously implement the four major measures of "large-scale production capacity, product
differentiation, innovation ecology, and lean management".First, further promote the ultra-large size
production capacity of the Company's polarizer business and improve the overall production capacity;
The second is to promote product differentiation, strengthen the technical research on flexible OLED,
automotive, VR polarizers and other products, and continue to optimize product structure; The third is
to promote innovation ecology, promote technical cooperation and development with upstream and
downstream, and build a standardized and efficient market-oriented R&D management system; The
fourth is to promote the lean management, effectively promote quality improvement, cost reduction,
efficiency increase, optimize the internal processes, improve de-inventory efficiency and reduce
operational risks.
2. Actively promote major asset restructuring, and achieve industrial integration within the industry
In strict accordance with the plan and time node orderly advance the material assets reorganization,
ensure comprehensive completed the material assets reorganization, realize the polarized industry
combination, rapid ascension polarized production scale, optimize the industrial chain layout, deepen
the depth of technical reserves, makes the company towards the development of high quality. This
material asset reorganization is in line with the relevant development strategy of the country and
31
2022 Annual Report
Shenzhen, and has positive significance to guarantee the security of the national new display supply
chain.
3. Ensure the stable growth of property business and provide effective support for the Company's
development
Property enterprises closely follow the changes of the surrounding business forms of property, carry
out operation around the rental rate and capital recovery rate, overcome the problems of property age,
poor conditions and backward facilities, continue to innovate operation, tap potential and increase
efficiency, improve service level and improve operating efficiency.
4. Continue to deepen the Company's market-oriented reform and continue to improve the level of lean
management
Continue to deepen the Company's market-oriented reform and comprehensively implement refined
management. Solidify the operation and management improvement process mode, strengthen operation
and management with efficiency as the core, continue to promote the deepening operation of amoeba
business projects. In view of production, quality, inventory, sales and other aspects, it shall refine
management units, improve management methods, stimulate employees' subjective initiative, enhance
enterprise operation vitality, thus to help the Company reduce costs and increase efficiency, steadily
improve the Company's market competitiveness, and shape an "efficient, low-consumption, fine-tuned"
energy-saving enterprise.
5. Strengthen the construction of talent team and ensure development with talent-driven innovation
Strengthen the construction of reserve talent echelon in the headquarter of the Company, improve the
working mechanism of reserve talent training and assessment, and scientifically plan and design the
dimension and content of reserve talent training. Introduce talents with core competitiveness, especially
introduce high-end technical talents and industrial management talents, mobilize resources from all
parties and broaden the channels for the introduction of core talents in order to deeply implement the
strategy of strengthening enterprises with talents.
6. Do well in safe production and maintain the harmony and stability of enterprises
Continue to implement the management concept of "safe production is no small matter", always put
safe production work in the first place, pay close attention to safe production and safety work in all
aspects, establish and improve various safety management systems and norms, accelerate the reform and
innovation of safety supervision, implement the responsibility for safe production, with specific
responsibilities and clear division of labor. Overcome the paralyzing thinking and the lax emotions,
continue to maintain a high-pressure situation, thus to continuously improve the Company's safety
production management level, and build a solid foundation for safety management.
7. Strengthen the guidance by party building and innovate corporate culture
32
2022 Annual Report
Adhere to the guidance of Xi jinping of the thought of socialism with Chinese characteristics in the
new era, deeply study and implement the spirit of the 20th National Congress of the Communist Party
of China, fully implement the important expositions of the general secretary on the reform and
development of state-owned enterprises and party building, bury our heads in hard work, strive to work,
focus on making up for shortcomings, strength the weaknesses, consolidate the bottom plates, and
promote advantages, thus to provide a strong political and organizational guarantee for the healthy
development of the Company.
XII. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □Not applicable
The main
content of the Index of the
The way of Object type of Reception
Reception time Reception place discussion and basic situation
reception reception person
the information of the survey
provided
The Company's
future
Cedar Capital
development
Yuan Bin；
plan, the impact
Sino Life Asset For details,
of Line 7 ramp-
Zhou please refer to
up on the
Zhichao； the Investor
Company's
Lingzhan Relations
performance,
Capital Xu activity Record
Meeting room the Company's
Yunfei,Shao of Shenzhen
February on the sixth name change
Field research Organization Congyuan； Textile
11,2022 floor of the plan, the impact
Pinan Fund (Holdings) Co.,
Company of panel price
Zhang Ltd.
fluctuations on
Xiaoquan； (No.: 2022-01)
the price of
Boliang Asset by the company
polarizers, and
Zhang Li； http://www.cni
the progress of
Qianhai nfo.c om.cn.
OLED TV
Yanghong
products and
Xiaozheng
other matters.
The Company's
For details,
future
please refer to
development
the Investor
plan, the Line 7
Relations
production and
activity Record
Meeting room construction,
of Shenzhen
on the sixth The majority of inventory
April 12,2022 Other Other Textile
floor of the investors impairment, the
(Holdings) Co.,
Company Company name
Ltd.
change plan,
(No.: 2022-02)
the state-owned
by the company
enterprise
http://www.cni
reform plan and
nfo.c om.cn.
other issues.
Vehicle For details,
Meeting room polarizer please refer to
on the sixth Cedar Capital layout,
June 14,2022 Field research Organization the Investor
floor of the Liu Jinyu polarizer
products for Relations
Company
mobile phones, activity Record
33
2022 Annual Report
Line 7 ramp-up of Shenzhen
progress, Textile
domestic
(Holdings) Co.,
substitution of
upstream raw Ltd.
materials, etc. (No.: 2022-03)
by the company
http://www.cni
nfo.c om.cn.
For details,
Corporate please refer to
performance, the Investor
corporate Relations
governance, activity Record
Meeting room equity of Shenzhen
November on the sixth The majority of incentives,
Other Other Textile
9,2022 floor of the investors development
strategy, (Holdings) Co.,
Company
sustainable Ltd.
development (No.: 2022-04)
and other by the company
issues. http://www.cni
nfo.c om.cn.
Shenzhen
Dexun
Securities ：
Ruan Shiwang,
Wang Shiyang,
Chang Jianwu,
Zhu Xiaofei, Fu
Junsong；
Vanguard
Fund：Zeng
Jie；Hotland
Innovation
asset：Wang Domestic For details,
Guorui； substitution of please refer to
Shenzhen upstream raw the Investor
Rongmai materials, the Relations
Technology： Company's activity Record
Meeting room main
Song of Shenzhen
November on the sixth customers, the
Field research Organization Bingbing； Textile
24,2022 floor of the Company's
Pingan Bank： product (Holdings) Co.,
Company
Zhang structure, Ltd.
Denghui； automotive (No.: 2022-05)
Shenwan polarizer by the company
Hongyuan products and http://www.cni
other issues.
Group：Li nfo.c om.cn.
Junhui；
Shenzhen
Gaobo
Investment：
Zhou
Jianfang；
Shenzhen
Huaxia Asset：
Tong Jin；
Wangzheng
Asset：Ma
Li；Beijing
34
2022 Annual Report
Dingsa
Investment：
Leng Hao;Guo
Chuang：Wu
Yanbin
The Company's
main For details,
Great Wall customers, please refer to
Securities product the Investor
Zhang structure, mass
Relations
Yunmo；First production of
OLED activity Record
Meeting room State Cinda
polarizer of Shenzhen
November on the sixth Fund Tong
By phone Organization products, Textile
30,2022 floor of the Changxi； automotive (Holdings) Co.,
Company Tianhong Fund polarizer Ltd.
Shen research and
(No.: 2022-06)
Zonghang, development,
new production by the company
Zhang Lei,
line planning http://www.cni
Zhou Kaining
and other nfo.c om.cn.
issues.
35
2022 Annual Report
IV. Corporate Governance
I. General situation
During the reporting period, the Company operated in strict accordance with the requirements of
relevant laws, regulations and normative documents, such as Securities Law, Company Law, Governance
Guidelines for Listed Companies, Guidelines for Self-discipline Supervision of Listed Companies in
Shenzhen Stock Exchange No.1-Standard Operation of Listed Companies on Main Board, and
strengthened risk management and control to ensure the healthy and stable development of the Company.
At present, the Company is with basically sound governance systems, standardized operation, and refined
corporate governance structure, which meets the requirements of the normative documents on the
governance of listed companies issued by China Securities Regulatory Commission.
In 2022, company held a total of 3 general meetings, convened general meetings, standardized
voting procedures to safeguard the effectiveness and legality in strict accordance with the regulations and
requirements of Corporation Law, Articles of Corporation and Rule of Procedure of Shareholders'
Meeting. Companies actively protected the voting rights of minority investors, and general meetings
were convened in the form of live network to adequately assure small investors of their rights to exercise.
In 2022, the board of directors held 10 meetings, and the convening and voting procedures were all
conducted in strict accordance with the Articles of Corporation and Rule of Procedure of Shareholders'
Meeting. All the directors performed directors ' duties, exercise directors ’ rights, attended related
meetings and actively participated in the training and became familiar with relevant laws and regulations
with serious, diligent and honest attitudes. Independent directors independently performed their duties in
strict accordance with Articles of Corporation, The independent director system and other relevant laws
and regulations, expressed fully their independent opinions on corporate operation, decision-making, and
important matters, etc. Strategy, audit, remuneration, evaluation, nomination committees were
established under board of directors, all committees functioned properly, and performed duties such as
internal audits, compensation assessment, nomination of senior management personnel, and provided
scientific and professional advisory opinions for board of directors ’ decision-making.
In 2022, the board of supervisors held 6 meetings. The board of supervisors strictly followed the
requirements of Articles of Corporation and Rules of procedure of the board of supervisors and other
relevant laws and regulations, supervised the legal compliance of the duties performed by company's
financial personnel and directors, managers and other senior management personnel in the aim of
maintaining the legitimate rights and interests of the company and its shareholders. All the supervisors
fulfilled their obligations, exercised their rights according to the laws. The convening and voting
procedures of the board of supervisors were legal, and the resolutions were legal and valid. The
establishment and implementation of board of supervisors played an active role in improving corporate
governance structure and regulating corporate operations.
Moreover, the Company carried out the special work Blue Sky Action according to Notification on
Implementing Special Work where Investors Protect Blue Sky Action published by Shenzhen Securities
Bureau to enhance the quality of information disclosure as the key point, to continuously perfect the
communication mechanism and to promote the normative development of the Company. various
platforms were made full use of, such as telephone, e-mail, website, especially the interactive platform of
investors in Shenzhen Stock Exchange, solved questions brought by investors, and communicated with
36
2022 Annual Report
medium and small investors interactively, and ensure all the investors obtained equal opportunities for
informal access. Meanwhile, in the aim of improving the transparency of listed companies, company
accepted investors’ on-site investigation to have comprehensive understandings of the company's
business situation through face-to-face communication with management, also urged the company
established a responsibility to return on investors, improved and enhanced the corporate governance
standards. Meanwhile, the Company continued to perfect the voting mechanism for minority investors. In
2022, the minority investors’ voting was counted separately at each of the 3 shareholder’ s meetings, and
whose result was disclosed at the decision announcement at the shareholder’s meeting, which fully
guaranteed the execution of power of the minority investors
Does there exist any difference in compliance with the corporate governance , the PRC Company Law
and the relevant provisions of CSRC
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The code of conduct of the controlling shareholders of the company did not go beyond the general
meetings directly or indirectly to interfere with the decision-making and business activities, the company
had independent and complete business and autonomous operation capacity , achieved “five point
separation” in respect of personnel, financial, asset, agencies, business.
III. Competition situations of the industry
□ Applicable √ Not Applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Meeting Disclosure
Sessions Type of meeting participation Disclosure index
Date date
ratio
The First provisional Provisional
January January http://www.cninfo.com.cn）
shareholders’ General shareholders’ 49.43%
meeting of 2022 General meeting 18,2022 19,2022 Announcement No.:2022-01
Annual
2021 Shareholders’ Shareholders’ May May http://www.cninfo.com.cn）
49.50%
general meeting General 19,2022 20,2022 Announcement No.:2022-16
Meeting
The Second provisional Provisional
October October http://www.cninfo.com.cn）
shareholders’ General shareholders’ 49.86%
meeting of 2022 General meeting 28,2022 29,2022 Announcement No.:2022-39
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Information about Directors, Supervisors and Senior Executives
37
2022 Annual Report
1.Basic situation
The Numb
numbe er of
Numb Reaso
Shares er of ns for
r of shares
Startin held at Other shares increa
Expiry shares reduce
Office g date the change held at
Name Positions
status
Sex Age
of
date of
year-
held in d in
s(share the end
se or
tenure the the decre
tenure begin( s) of the
current current ase of
share) period(
period( period(
shares) shares)
shares) shares
Board
chairman
n， Februa Februa
Secretary In
Yin Kefei Male 48 ry 10, ry 0 0 0 0 0 0
y of the office
party 2021 9,2024
committ
ee
Deputy
Secretary
of the
Party July Februa
Zhu In
commi Male 58 19,201 ry 93,000 0 0 0 93,000 0
Meizhu office
ttee， 7 9,2024
Director,
Genera l
Mange r
Director ,
Deputy Decem
Secretary Februa
Ning In be
of the Male 46 ry 0 0 0 0 0 0
Maozai office 14,201
Party 9,2024
committe 7
e
Director, Octobe
Februa
Wang Deputy In r
Male 50 ry 0 0 0 0 0 0
Chuan General office 28,202
9,2024
Manager 2
Januar
Februa
Director , In y
He Fei Male 44 ry 0 0 0 0 0 0
CFO office 16,202
9,2024
0
Februa
Februa
Sun In ry
Director Male 41 ry 0 0 0 0 0 0
Minghui office 10,202
9,2024
1
Independ July July
He In
ent Male 60 19,201 18,202 0 0 0 0 0 0
Zuowen office
Director 7 3
Independ July July
Cai In
ent Male 53 19,201 18,202 0 0 0 0 0 0
Yuanqing office
Director 7 3
Januar
Independ Februa
In y
Wang Kai ent Male 39 ry 0 0 0 0 0 0
office 16,202
Director 9,2024
0
Chairman
of the Januar
Februa
superviso In y
Ma Yi Male 56 ry 0 0 0 0 0 0
ry office 16,202
9,2024
committe 0
e,
38
2022 Annual Report
Secretary
of the
Commissi
on for
Disciplin
e
Inspectio
n
Sharehold Januar
Februa
Yuan ers' In y
Male 42 ry 0 0 0 0 0 0
Shuwen Superviso office 16,202
9,2024
r 0
Februa
Employee Februa
Zhan In Femal ry
superviso 53 ry 0 0 0 0 0 0
Lumei office e 10,202
r 9,2024
1
July Februa
Liu Deputy In
Male 58 19,201 ry 3,000 0 0 0 3,000 0
Honglei GM office
7 9,2024
Septe
Februa
Deputy In mber
Guan Fei Male 37 ry 0 0 0 0 0 0
GM office 22,202
9,2024
1
Secretary Januar
Februa
Jiang to the In Femal y
52 ry 0 0 0 0 0 0
Peng board of office e 16,201
9,2024
directors 5
Board
chairman
n， Februa
Zhang Secretary Dimiss Femal ry August
43 0 0 0 0 0 0
Jian y of the ion e 10,202 2,2022
party 1
committ
ee
Total -- -- -- -- -- -- 96,000 0 0 0 96,000 --
During the reporting period, whether there is dismissal of directors and supervisors and recruitment of
senior managers
√Yes □ No
Zhang Jian, the former Chairman of the Company, resigned on August 2, 2022. For details, please
refer to the Company's Announcement on the Resignation of the Chairman of the Company (No.2022-
23) on CNINF (http://www.cninfo.com.cn). On August 5, 2022, the Company held the Fourteenth
Meeting of the Eighth Board of Directors, elected Yin Kefei as the Chairman of the Eighth Board of
Directors, nominated Wang Chuan as a candidate for the non-independent director of the Eighth Board
of Directors, and submitted the appointment of Wang Chuan as the deputy general manager of the
Company to the General Meeting of Shareholders for election. For details, please refer to the
Company's Announcement on Resolution of the Fourteenth Meeting of the Eighth Board of Directors
(No.2022-24) on CNINF (http://www.cninfo.com.cn). On October 28, 2022, the Company held the
second extraordinary general meeting of shareholders in 2022, and elected Wang Chuan as a non-
independent director of the eighth board of directors of the Company. As of the disclosure date of this
report, except for the above changes, other directors, supervisors and senior management personnel of
the Company have not changed.
39
2022 Annual Report
Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
Zhang Jian Board chairman Dimission August 2,2022 Job adjustment.
The original chairman of the
Yin Kefei Board chairman Elected August 5,2022
board resigned.
Director, Deputy The original director of the
Wang Chuan Elected October 28,2022
General Manger board resigned.
2.Posts holding
Professional background, work experience and main duties in the Company of existing directors,
supervisors and senior management
(1) Director
Yin Kefei, male, born in July 1974, holds a master's degree, is an engineer and a member of the
Communist Party of China. Successively served as technician and deputy director of customer service
center of Pipeline Gas Branch of Shenzhen Gas Group Co., Ltd; Deputy Director, Director, and Director
of the General Office of the Civil User Service Department of the Pipeline Gas Customer Service
Branch of Shenzhen Gas Group Co., Ltd; Deputy General Manager of Ganzhou Shenran Natural Gas
Co., Ltd. of Shenzhen Gas Group Co., Ltd; Member of the Party Leadership Group and Deputy Director
of the State-owned Assets Supervision and Administration Commission of Dongguan City, Guangdong
Province, concurrently serving as Vice Chairman of Dongguan Water Investment Group Co., Ltd;
Deputy Secretary General of Dongguan Municipal Government of Guangdong Province, Secretary and
Director of the Party Leadership Group of the Liaison Office in Beijing of Dongguan Municipal
Government of Guangdong Province, and concurrently Chairman of the Supervisory Board of
Dongguan Biotechnology Industry Development Co., Ltd; Deputy Secretary of the Party Committee,
Director, General Manager of Dongguan Financial Holding Group Co., Ltd., concurrently serving as a
director of the Bank of Dongguan and a director of Dongguan Asset Management Company. Currently,
he is the Deputy General Manager of Shenzhen Investment Holding Co., Ltd., and concurrently serves
as the Chairman of Electronic Components and Integrated Circuit International Trading Center Co., Ltd.,
as well as the Secretary of the Party Committee and Chairman of the Company.
Zhu Meizhu, Male, Born in November 1964, Master degree, Senior engineer, once served
successively as chief Deputy general Manager of Enterprise Management Dept of the Company,
Director of R& D Center, Assistant General Manager and Deputy General Manager, He serves as Vice
Secretary of the party committee ,director and General Manager of the Company.
Ning Maozai, male, born in July 1975, bachelor degree, senior administration engineer, Chinese
Communist Party member; he has served successively as the office clerk of Shenzhen Guomao
Automobile Industry Co., Ltd, the clerk, principal staff member, associate director and director of party-
mass office of Shenzhen Property Development (Group) Corp. and hold a concurrent post of deputy
human resource Deputy manager and manager; At present he holds the position of company director
and Vice Secretary of the party committee of the Company.
Wang Chuan, male, born in March 1972, holds a master's degree, is an economist, engineer, and
member of the Communist Party of China. He has successively served as the Deputy Director, Minister,
and Assistant Director of the Cooperation and Development Department of the Shenzhen National High
Technology Industry Innovation Center, the Director, General Manager, and Chairman of Shenzhen
Innovation Start Technology Co., Ltd., and the Deputy General Manager of Shenzhen Tongchan Group
40
2022 Annual Report
Co., Ltd. Currently, he is the Director of the Industrial Management Department of Shenzhen
Investment Holding Co., Ltd., a member of the Party Committee, a director, and a deputy general
manager of the company. He is also the Chairman of Shenzhen Shengbo Optoelectronic Technology
Co., Ltd.
He Fei, male, born in February 1978, holds a master's degree, is a member of the Communist Party
of China, a Chinese certified public accountant, and holds the professional title of accountant. He has
successively served as an accountant in the planning and finance department of Shenzhen Gas Group
Co., Ltd., an accountant in the finance department of Shenzhen Gas Investment Co., Ltd., a subsidiary
of Shenzhen Gas Group Co., Ltd., a manager in the finance department of Hubei Shenjie Clean Energy
Co., Ltd., a subsidiary of Shenzhen Gas Investment Co., Ltd., a director in the comprehensive finance
department of Shenzhen Convention and Exhibition Center Management Co., Ltd., and a deputy
director in the finance department (settlement center) of Shenzhen Investment Holding Co., Ltd.
Currently, he is a director and CFO of the company, serving as the financial director of the company,
and concurrently serving as a supervisor of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Sun Minghui, male, born in September 1981, holds a master's degree, is a senior accountant, and a
member of the Communist Party of China. He has successively served as a staff member of the Capital
Department of Shenzhen Energy Finance Co., Ltd., the Financial Management Department of Shenzhen
Energy Group Co., Ltd., the Financing Management Director of the Financial Budget Department of
Shenzhen Investment Holding Co., Ltd., the Senior Director of the Finance Department and the Board
Office, and the Deputy Director of the Finance Department (Settlement Center). Currently, he is the
director (director) of the finance department (settlement center) of Shenzhen Investment Holding Co.,
Ltd. and a director of the company.
He Zuowen, male, born in October 1962, holds a master's degree in business administration, an
associate professor of accounting, a chartered certified public accountant in the securities and futures
industry, and a registered tax agent. Currently, he is a partner of Dahua Certified Public Accountants
(Special General Partnership) and the secretary of the General Party Branch of Shenzhen Branch. He
also serves as an off-campus tutor for master's degree students at Shenzhen University, the general
manager and chairman of Shenzhen Tianye Tax Agents Co., Ltd., a member of the Guangdong
Provincial Senior Accountants Review Committee, a member of the Shenzhen Municipal Certified
Public Accountants Industry Committee of the Communist Party of China, and a director of the
Shenzhen Municipal Certified Tax Agents Association, Member of the Capital Market Advisory Expert
Committee of the Xinjiang Regulatory Bureau of China Securities Regulatory Commission,
independent director of Shenzhen Tongyi Industrial Co., Ltd., independent director of Shenzhen Yirui
Biological Co., Ltd., independent director of Shenzhen Special Economic Zone Real Estate (Group) Co.,
Ltd., and independent director of the Company.
Cai Yuanqing, male, born in September 1969, holds a Doctor of Law from Hiroshima University in
Japan, a member of the Board of Governors of Shenzhen University, a professor of the School of Law, a
director of the Center for Corporate Law Research, a tutor for master's degree students, a Vice President
of the Guangdong Civil and Commercial Law Research Association, and an Executive Vice President of
the Shenzhen Securities Law Research Association. He also serves as an arbitrator of the Shenzhen
International Arbitration Court, an arbitrator of the Zhuhai International Arbitration Court, and an
41
2022 Annual Report
independent director of China Merchants Shekou Industrial Zone Holding Co., Ltd, Independent
Director of Oufeiguang Group Co., Ltd., Independent Director of Guangdong Lingyi Intelligent
Manufacturing Co., Ltd., Independent Director of Shenzhen Zhongdian Hong Kong Technology Co.,
Ltd., and Independent Director of the Company.
Wang Kai, male, born in September 1983, is a doctoral candidate from Huazhong University of
Science and Technology, a member of the Communist Party of China, an associate professor and
researcher of the Department of Electronic and Electrical Engineering of Southern University of Science
and Technology, a national outstanding youth, and a distinguished youth from Guangdong Province. He
has served as a member of the Technical Committee of the Beijing Branch of the International Society
for Information Display (SID), deputy director of the Key Laboratory of Energy Conversion and
Storage Technology of the Ministry of Education, deputy director of the Key Laboratory of Quantum
Dot Advanced Display and Lighting in Guangdong Province, and other positions. He is a technical
consultant of Xi'an Safaris Semiconductor Co., Ltd., a technical consultant of Shenzhen Polang
Innovation Technology Co., Ltd., and an independent director of the company.
（2）Supervisor
Ma Yi, male, born in August 1966, holds a bachelor's degree, a member of the Communist Party of
China, and holds the title of assistant economist. He has successively served as a cadre of the
automobile manufacturing plant of Hainan Provincial Automobile Transportation Corporation, the
business director and general manager assistant of Shenzhen Shenjiu International Logistics Co., Ltd.
Guangzhou Branch, the operation director of COSCO Logistics Guangzhou Anteida Logistics Co., Ltd.,
the general manager of Shenzhen Shenjiu International Logistics Co., Ltd. Guangzhou Branch, the
director and assistant director of the planning and development department of Shenzhen Highway
Passenger and Freight Transport Service Center, and the head of Futian Station, Director, General
Manager, and Deputy Secretary of the Party Committee of Shenzhen Highway Passenger and Freight
Transportation Service Center Co., Ltd. Currently, he is the Secretary of the Discipline Inspection
Commission and Chairman of the Board of Supervisors of the Company.
Yuan Shuwen, male, born in May 1980, holds a master's degree, is a senior accountant, and a
member of the Communist Party of China. He has successively served as the stationmaster of Shigu
Business Management Station of Hengshan County Rural Business Management Bureau, the financial
director of Shenzhen Fengcheng Iron Wire Products Co., Ltd., the project manager of Shenzhen Branch
of Lixin Certified Public Accountants Co., Ltd., and the general ledger accountant of the financial
department of Shenzhen Zhenye (Group) Co., Ltd. Currently, he is the deputy director of the assessment
and distribution department of Shenzhen Investment Holding Co., Ltd., and the supervisor of the
company.
Zhan Lumei, female, born in June 1969, holds a college degree, is a senior labor relations
coordinator, senior career instructor, and a member of the Communist Party of China. He has
successively served as the administrative and personnel director of Shenzhen Hualang Clothing Co.,
Ltd., as well as the director and manager of the human resources department of the company. Currently,
he is the Vice Chairman of the Company's Workers' Federation, the Director of the Party and Mass
Work Department, the Chairman of the Labor Union of the Company, and the Employee Supervisor.
（3） Senior management
Liu Honglei, male, born in May 1964, holds a bachelor's degree, is a senior engineer, and a member
of the Communist Party of China. He has successively served as a technician, workshop director, and
deputy director of the director's office of the First Film Factory of the Ministry of Chemical Industry,
42
2022 Annual Report
the director of the Personnel Education Department of China Lekai Film Group, the deputy general
manager, director, and general manager of Shenzhen Shengbo Optoelectronic Technology Co., Ltd., and
the director of the Party Mass Work Department and the manager of the Operation Management
Department of the company. Currently, he is the Deputy General Manager of the company.
Guan Fei, male, born in December 1985, holds a master's degree, a member of the Communist
Party of China, and is an intermediate economist. Successively served as Customer Manager of
Agricultural Bank of China Shenzhen Branch; Deputy Chief Staff Member of Sichuan Regulatory
Bureau of China Banking and Insurance Regulatory Commission; Senior Manager of the Institutional
Management Department of Sichuan Industrial Revitalization and Development Investment Fund Co.,
Ltd., concurrently serving as Deputy General Manager of Chengdu Financial Holding Development
Equity Investment Fund Management Co., Ltd; The first general manager of Sichuan Innovation
Development Investment Management Co., Ltd., concurrently serving as the executive deputy general
manager of Chengdu Venture Capital Shihao Investment Management Co., Ltd., and concurrently
serving as the chairman of Sichuan Fuda Investment Management Co., Ltd; Deputy General Manager of
Shenzhen Infrastructure Investment Fund Management Co., Ltd. Currently, he is the Deputy General
Manager of the company.
Jiang Peng, female, born in October 1970, holds a bachelor's degree and is a member of the
Communist Party of China. He has successively served as a section member and deputy section chief of
the office of Shandong Provincial Aquatic Enterprise Group Corporation, the section chief, deputy
director, and securities affairs representative of the Board of Directors Office of Shandong Zhonglu
Ocean Fisheries Co., Ltd., the securities affairs representative of Huafu Color Textile Co., Ltd., the
securities affairs representative of the company, and the director of the Board Secretariat. Currently, he
is the Secretary of the Board of Directors of the Company and concurrently serves as a director of
Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
receive
Names of the persons Names of the Titles engaged in Sharing date of Expiry date of
remuneration or
in office shareholders the shareholders office term office term
allowance from
the shareholder
Shenzhen
Yin Kefei Investment Deputy GM January 11,2021 Yes
Holdings Co., Ltd.
Director of the
Shenzhen
Industry
Wang Chuan Investment May 23,2018 No
Management
Holdings Co., Ltd.
Department
Director of
Shenzhen Financial
Sun Minghui Investment November 11,2020 Yes
Dept( Clearing
Holdings Co., Ltd.
centre）
Deputy Director of
Shenzhen
discipline September
Yuan Shuwen Investment Yes
Inspection & 18,2017
Holdings Co., Ltd.
Supervision
Description of the
position in the No
shareholder unit
Offices taken in other organizations
43
2022 Annual Report
√Applicable □Not applicable
Does he/she
receive
Titles engaged in
Name of the persons in Name of other Starting date of Expiry date of remuneration or
the other
office organizations office term office term allowance from
organizations
other
organization
Shenzhen
Convention and
Yin Kefei Exhibition Center Director April 23,2021 No
Management Co.,
Ltd
Shenzhen
Environmental
Yin Kefei Director April 23,2021 No
Technology Group
Co., Ltd.
Shenzhen Wuzhou
Yin kefei Director June 11,2021 No
Guest House
Shenzhen Nanyou
Director, Vice
Yin Kefei （Group）Co., August 16,2021 No
president
Ltd.
Shenzhen
International The candidate for
Yin Kefei Investment the second January 20,2022 No
Promotion president
Federation
Electronic
components and
integrated circuits
Yin Kefei Board chairman December 5,2022 No
International
Trading Center
Co., Ltd
Shezhen
Shenfubao
Wang Chuan Director June 21,2018 No
（Group）Co.,
Ltd.
ULTRARICH
Wang Chuan INTERNATIONA Director June 27,2018 No
L LIMITED
Shenzhen
Wang Chuan Tongchan Group Director December 17,2020 No
Co., Ltd.
China Nanshan
Sun Minghui Development Supervisor October 17,2017 No
(Group) Co., Ltd.
Shenzhen
Highway
Passenger & Cargo
Sun Minghui Supervisor June 16,2017 No
Transportation
Service Center
Co., Ltd.
ULTRARICH
Sun Minghui INTERNATIONA Director November 11,2020 No
L LIMITED
Shenzhen Special
Sun Minghui Economic Zone Director November 11,2020 No
Real Estate
Hubei
Shentoukong
Sun Minghui Investment Director November 11,2020 No
Development Co.,
Ltd
44
2022 Annual Report
Shenzhen
Shengang
Technology
Sun Minghui Innovation Director October 18,2021 No
Cooperation Zone
Development Co.,
Ltd.
Shenzhen Chiwan
Sun Minghui Development Co., Supervisor June 30,2021 No
Ltd.
Shenzhen
September
Yuan Shuwen Textile(Holdings) Supervisor No
Co., Ltd. 27,2019
Shenzhen
International
Yuan Shuwen Supervisor October 22,2017 June 10,2020 No
Tendering Co.,
Ltd.
Description of his
No
position in other units
Punishments to the current and leaving board directors, supervisors and senior managers during the report period by
securities regulators in the recent three years
□ Applicable √Not applicable
3. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to
directors , supervisors and senior executives In the report period, The remuneration of directors and
senior management paid by the company is determined by “Director Compensation Management
System” and “Executive Compensation Management and Evaluation System ” , the remuneration of
independent directors is determined as per the resolution of shareholders’ meeting, and the remuneration
of supervisors paid by the company is determined by their position held in the company.
Remuneration to directors, supervisors and senior executives in the reporting period
In RMB10,000
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from company related
the Company party
Director,Board
chairman ， Secretary
Yin Kefei Male 48 In office 0 Yes
of the party
committee
Deputy Secretary of
the Party
Zhu Meizhu committee， Male 58 In office 151.26 No
Director, General
Manger
Director ,Deputy
Ning Maozai Secretary of the Party Male 47 In office 134.2 No
committee
Wang Chuan Director, Deputy GM Male 51 In office 28.9 No
Sun Minghui Director Male 41 In office 0 Yes
He Fei Director ,CFO Male 45 In office 99.02 No
He Zuowen Independent Director Male 60 In office 12 No
Cai Yuanqing Independent Director Male 53 In office 12 No
Wang Kai Independent Director Male 39 In office 12 No
Ma Yi Chairman of the Male 56 In office 111.42 No
45
2022 Annual Report
supervisory
committee, Secretary
of the Commission for
Discipline Inspection
Yuan Shuwen Supervisor Male 42 In office 0 Yes
Zhan Lumei Employee supervisor Female 53 In office 63.7 No
Liu Honglei Deputy GM Male 58 In office 130.51 No
Guan Fei Deputy GM Male 37 In office 96.99 No
Secretary to the board
Jiang Peng Female 52 In office 127.23 No
of directors
Board chairman,
Zhang Jian Female 43 Dimission 110.07 No
Director
Total -- -- -- -- 1,089.30 --
Note: The salaries of the directors, supervisors, and senior executives who receive salaries in the
company include basic salary and partial performance-based salary, as well as partial performance-
based salary paid in the previous year after the completion of the annual assessment; Wang Chuan has
been receiving salary in the company since he was hired as Deputy General Manager in July 2022.
VI. Performance of directors' duties during the reporting period
1. Information of the board meetings during the reporting period
Session Convening date Disclosure date Meeting resolution
http://www.cninfo.com.c
The 10th meeting of the Eighth
February 25,2022 February 26,2022 (Announcement No.:2022-
Board of Directors
03)
http://www.cninfo.com.c
The 11th meeting of the Eighth
March 15,2022 March 17,2022 (Announcement No.:2022-
Board of Directors
04)
http://www.cninfo.com.c
The 12th meeting of the Eighth
April 27,2022 April 29,2022 (Announcement No.:2022-
Board of Directors
13)
http://www.cninfo.com.c
The 13th meeting of the Eighth
June 17,2022 June 18,2022 (Announcement No.:2022-
Board of Directors
18)
http://www.cninfo.com.c
The 14th meeting of the Eighth
August 5,2022 August 6,2022 (Announcement No.:2022-
Board of Directors
24)
http://www.cninfo.com.c
The 15th meeting of the Eighth
August 23,2022 August 25,2022 (Announcement No.:2022-
Board of Directors
29)
http://www.cninfo.com.c
The 16th meeting of the Eighth
October 11,2022 October 12,2022 (Announcement No.:2022-
Board of Directors
35)
http://www.cninfo.com.c
The 17th meeting of the Eighth
October 28,2022 October 29,2022 (Announcement No.:2022-
Board of Directors
40)
http://www.cninfo.com.c
The 18th meeting of the Eighth
December 16,2022 December 17,2022 (Announcement No.:2022-
Board of Directors
44)
http://www.cninfo.com.c
The 19th meeting of the Eighth
December 30,2022 December 31,2022 (Announcement No.:2022-
Board of Directors
48)
46
2022 Annual Report
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
board Whether to
Number of board Number of General
meetings Number of attend the
board meetings board meetings
board board
Name of director attended meetings attended by meetings
meetings meeting in
of
during the attended in means of attended by shareholde
absent from person twice
reporting person communicati proxy rs attended
in a row
on
period
Yin Kefei 10 10 0 0 0 No 3
Zhu Meizhu 10 10 0 0 0 No 3
Ning Maozai 10 10 0 0 0 No 3
He Fei 10 10 0 0 0 No 3
Sun Minghui 10 9 0 1 0 No 3
He Zhuowen 10 4 6 0 0 No 3
Cai Yunqing 10 4 6 0 0 No 3
Wang Kai 10 4 6 0 0 No 3
Wang Chuan 3 3 0 0 0 No 0
Zhang Jian 4 4 0 0 0 No 2
Explanation of failure to attend the board meeting in person twice in a row
None
3. Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
√Yes □ No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
During the reporting period, all directors of the Company worked diligently and conscientiously in strict
accordance with the relevant regulations of China Securities Regulatory Commission and Shenzhen Stock
Exchange, the Articles of Association, the Rules of Procedure of the Board of Directors and other systems of the
Company, paid close attention to the Company's standardized operation and business situation, put forward
relevant opinions on the Company's major governance and business decisions according to the actual situation of
the Company, reached a consensus after full communication and discussion, and resolutely supervised and
promoted the implementation of the resolutions of the Board of Directors, so as to ensure scientific, timely and
efficient decision-making, and protect the legitimate rights and interests of the Company and all shareholders.
VII. Situation of special committees under the Board of Directors during the reporting period
Put forward Other Details
Number of
Member Convening Meeting important information of
Committee name meetings
information date content opinions and of duty objection
convened
suggestions performance s (if any)
Nomination Cai August Deliberate Agree on the
1
Committee of the Yuanqing, 3,2022 the nomination
47
2022 Annual Report
Board of He Zhuowen, nomination of Wang
Directors Wang Kai of non- Chuan's non-
independent independent
directors and directors and
deputy the
general appointment
managers of of senior
the manager.。
Company.
It made a
more
accurate
prediction of
the possible
impact of the
trial
operation
(I) It
income of
communicate
Line 7 on the
d on the
Company's
relevant
financial
matters
statements
before the
after the
He Zhuowen, audit; (II)
implementati
Audit Cai January The Risk
7 on of the new
committee Yuanqing, 18,2022 Control
accounting
He Fei Audit
policy; The
Department
Risk Control
reported the
Audit
internal audit
Department
work in the
and Finance
4th quarter to
Department
the Audit
actively
cooperated
with
accountants
to carry out
their work
and other
suggestions.
(I) According
to the
requirements
of the annual
The Audit
audit, all
Committee
relevant
communicate
departments
s with the
He Zhuowen, actively
annual
Audit Cai February cooperated
7 auditor on
committee Yuanqing, 16,2022 with
the audit
He Fei accountants
progress and
to provide
problems
relevant
found during
information,
the audit.
and the
Finance
Department
and SAPO
48
2022 Annual Report
Company
actively
cooperated to
follow up the
collection of
response
letters; (II) It
is suggested
that the
Company
supplement
the
information
in time and
improve the
correspondin
g procedures
for the
problems
concerned in
the audit
process.
(I) He
Zuowen, the
convener of
the meeting,
made a
report on the
performance
of the audit
committee in
2021; (II) It It is agreed to
deliberated submit the
the Annual proposal
Report in deliberated at
2021, the the meeting
He Zhuowen, Financial to the
Audit Cai March Final Report eleventh
7
committee Yuanqing, 10,2022 in 2021, the meeting of
He Fei Profit the eighth
Distribution Board of
Plan in 2021, Directors of
the Self- the Company
evaluation for
Report for deliberation.
Internal
Control in
2021 and the
Special
Report on the
Deposit and
Use of
Raised Funds
in 2021.
He Zhuowen, It listened to t recognized
Audit Cai April the Internal the internal
7
committee Yuanqing, 18,2022 Audit Work audit work of
He Fei Summary for the Risk
49
2022 Annual Report
the First Control
Quarter and Audit
the Internal Department
Audit Work in the first
Plan for the quarter of
Second 2022, and
Quarter of requested the
2022 Risk Control
reported by Audit
the Risk Department
Control to continue
Audit to carry out
Department. audit work
according to
the
requirements
of the annual
internal audit
work plan for
the second
quarter of
2022.
It listened to
the Summary
of Internal (I) It
Audit in the approved the
Second internal audit
Quarter and work of the
the Work Risk Control
Plan for the Audit
Third Department
Quarter of in the second
2022 and the quarter of
Special 2022, and
Inspection requested the
Report on Risk Control
Standardized Audit
Operation of Department
He Zhuowen, Listed to continue
Audit Cai August Companies the audit
7
committee Yuanqing, 19,2022 in the First work in the
He Fei Half of 2022 third quarter
reported by of 2022
the Risk according to
Control the
Audit requirements
Department, of the annual
deliberated internal audit
the proposal work plan;
of the Semi- (II) The
annual proposal of
Report in the Semi-
2022 and put annual
forward Report in
relevant 2022 was
requirements adopted.
for internal
audit.
50
2022 Annual Report
It is agreed
that the
Company
will hire
Deloitte
It deliberated
Touche
He Zhuowen, the Proposal
Tohmatsu
Audit Cai October on Hiring
7 CPA Ltd
committee Yuanqing, 9,2022 Audit
(special
He Fei Institutions
general
in 2022.
partnership)
to provide
audit services
for the
Company.
(I) It
approved the
internal audit
work of the
Risk Control
Audit
Department
in the third
It listened to
quarter of
the Summary
2022, and
of Audit
requested the
Work in the
Risk Control
Third
Audit
Quarter and
Department
the Internal
to continue
Audit Work
the audit
Plan in the
work in the
Fourth
fourth
Quarter of
quarter of
2022
2022
He Zhuowen, reported by
according to
Audit Cai November the Risk
7 the
committee Yuanqing, 4,2022 Control
requirements
He Fei Audit
of the annual
Department,
internal audit
and put
work
forward
plan;(II) It is
relevant
considered
requirements
that the
for internal
Company has
audit work of
maintained
Risk Control
effective
Audit
internal
Department
control over
in the fourth
financial
quarter.
reports and
non-financial
reports in all
major aspects
in
accordance
with the
requirements
51
2022 Annual Report
of the
enterprise
internal
control
standard
system and
relevant
regulations.
The
Committee
believed that
the
formulation
of the
Annual
Operating
Performance
Appraisal
and Salary
Management
Plan for
Senior
It deliberated Managers of
the Annual Shenzhen
Operating Textile
Performance (Holdings)
Appraisal Co.,Ltd. in
and Salary 2021
Remuneration He Zhuowen, Management conformed to
November
and Appraisal Wang Kai, 1 Plan for the relevant
14,2022
Committee He Fei Senior provisions of
Managers of the
Shenzhen Governance
Textile Guidelines of
(Group) Listed
Co.,Ltd. in Companies,
2021. the Articles
of
Association
of the
Company
and the
Working
Regulations
of the
Remuneratio
n and
Appraisal
Committee
of the Board
of Directors;
It deliberated The Strategic
the Proposal Planning
Strategic on the Committee
October
Planning 1 Company's believes that
17,2022
Committee "14th Five- the
Year" Company's
Strategic 14th Five-
52
2022 Annual Report
Plan. Year
Strategic
Plan, with
the
criticality,
balance,
feasibility
and
quantificatio
n as the
guiding
principles,
organically
combines the
Company's
development
vision and
indicators,
implements
strategic
planning,
promotes in-
depth
development,
and
constructs a
target system
that reflects
the
Company's
"14th Five-
Year" reform
and
development
effectiveness
; The
business
objectives
are designed
reasonably,
the financial
indicators are
calculated
scientifically,
and the
construction
plans of key
investment
projects are
basically
reasonable. It
suggested the
management
of the
Company to
actively
strive for the
support of
53
2022 Annual Report
national
policies,
seriously
organize
their
implementati
on, and
constantly
improve the
"14th Five-
Year"
Strategic
Plan in
combination
with the
Company's
actual
situation.
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during th
e reporting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.
IX. Particulars about employees.
1.Number of staff, professional structure and educational background
Number of in-service staff of the parent company(person) 55
Number of in-service staff of the main subsidiaries(person) 1,323
The total number of the in-service staff(person) 1,575
The total number of staff receiving remuneration in the current
1,575
period(person)
Retired staff with charges paid by the parent company and main
0
subsidiaries (person)
Professional
Category Number of persons（person）
Production 1,107
Sales 32
Technical 198
Financial 30
Administrative 208
Total 1,575
Education
Category Number of persons（person）
Holders of master’s degree or above 44
Graduates of regular university 251
Colleges 155
Mid-school or below 1,125
Total 1,575
54
2022 Annual Report
2. Remuneration policies
In 2022, the Company carried out management for employees’ compensation in strict accordance with the
state’s relevant laws and regulations and guaranteed the fairness and reasonability of the compensation, which
offered relevant rewards and incentives to the employees, accelerate them to jointly develop with the
Company , and simultaneously reflected humanistic care of the Company.
3.Training plan
Combined with the Company's development strategy, continue to improve the Company's talent training
system and strengthen the exchange and learning of personnel in the Shenzhen Textile system. First, improve
the systematic talent training system to provide solid support for the Company's strategic development.
Mainly through Shenzhen Textile Lecture, Shenzhen Textile Group Network College and "2022 Registered
Safety Engineer Training Camp", create a new "order-based" cadre training model, create a learning
organization, and enhance the core competitiveness of the Group. Second, establish a systematic enterprise
talent exchange mechanism, and carry out two-way exchange and training activities for cadres and talents of
the Group and its affiliated enterprises, so as to enhance the comprehensive business ability and performance
ability of employees and stimulate the vitality of cadres.
4.Outsourcing situation
□ Applicable √ No Applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend
policy during the reporting period
√ Applicable □ Not applicable
On May 9, 2022, the Company held the 2020 annual general meeting of shareholders to deliberate and pass
the 2021 profit distribution plan. The 2021 profit distribution plan of the Company is as follows: based on the
profit available for distribution in the consolidated statement, with the total share capital of 506,521,849
shares as the base as of December 31, 2021, a cash dividend of RMB 0.50 (including tax) will be distributed
to all shareholders for every 10 shares, with a total cash dividend of RMB 25,326,092.45 (including tax), the
remaining undistributed profits will be carried forward to the next year; No bonus shares will be given, and no
capital reserve will be used to increase capital. If the total share capital of the Company changes before the
implementation of the distribution plan, the total share capital of date of record will be taken as the base when
the distribution plan is implemented in the future, a cash dividend of RMB 0.50 (including tax) will be
distributed to all shareholders for every 10 shares,and the specific amount will be subject to the actual
distribution. The Company's shares held by the Company are not included in profit distribution. During the
period from the disclosure of the distribution plan to its implementation, The total share capital of the
Company has not changed.
Special description of cash dividend policy
Whether it meets the requirements of the Articles of Association or
Yes
the resolution of the general meeting of shareholders:
Whether the dividend standard and proportion are explicit and
Yes
clear:
55
2022 Annual Report
Whether the relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors have performed their duties and
Yes
played their due role:
Whether the minority shareholders have the opportunity to fully
express their opinions and demands, and whether their legitimate Yes
rights and interests have been fully protected:
Whether the cash dividend policy is adjusted or changed, and
whether the conditions and procedures are compliant and Yes
transparent:
During the reporting period, the Company made a profit and the profit available to shareholders of the
parent company was positive, but no cash dividend distribution plan was put forward.
□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 0.6
A total number of shares as the distribution basis(shares) 506,521,849
Cash dividend amount (yuan, including tax 30,391,310.94
Other means (such as repurchase of shares) cash dividend
0.00
amount (yuan)
Total cash dividend (yuan, including tax) 0
Distributable profit (yuan) 170,636,610.95
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
When the company's development stage is in the growth period and there are major capital expenditure arrangements,
when the profit distribution is carried out, the proportion of cash dividends in this profit distribution should be at least
20%.
Detailed explanation of the profit distribution or capital reserve transfer plan
Based on the distributable profits in the consolidated statement, with the total share capital of 506,521,849 shares as of
December 31, 2022 as the base, a cash dividend of RMB 0.60 (including tax) was distributed to every 10 shares of all
shareholders, with a total cash dividend of RMB 30,391,310.94 (including tax).No bonus shares will be issued and no
capital reserve will be converted into share capital.If there is a change in the total share capital of the company before
the implementation of the distribution plan, the total distribution amount shall be adjusted based on the total share
capital on the equity registration date when the distribution plan is implemented in the future, and the above
distribution proportion shall be kept unchanged. The specific amount shall be subject to the actual distribution.
XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership
Plan or Other Employee Incentive Measures
√ Applicable □ Not applicable
1. Equity incentive
Not applicable
Equity incentives obtained by directors and senior managers of the Company
□ Applicable √ Not applicable
Evaluation mechanism and incentives of senior managers
Not applicable
56
2022 Annual Report
2. Implementation of ESOP
√ Applicable □ Not applicable
All effective ESOPs during the reporting period
Funding
Proportion of total sources for
Quantity of Total number of Change
Scope of employees share capital of plan
employees shares held information
listed companies implementatio
n
The Company
As of employees'
Directors, supervisors,
September 6, legal
senior managers and
2022, the A shares remuneration,
other core
of the Company self-raised
technical/business/man
126 1,403,600 held by the first 0.28% funds and
agement backbones of
employee stock other legal
the Company
ownership plan of ways
(including subsidiaries,
the Company have permitted by
the same below).
all been reduced. laws and
regulations.
Shareholding of directors, supervisors and senior managers in the ESOP during the reporting period
Number of shares held Number of shares held Proportion of total
Name Position at the beginning of the at the end of the share capital of
reporting period reporting period listed companies
Zhang Jian Original chairman 114,206 0 0.00%
Director, General
Zhu Meizhu 114,206 0 0.00%
Manager
Director, Vice
Ning Maozai Secretary of Party 28,551 0 0.00%
Committee a
Liu Honglei Deputy GM 57,103 0 0.00%
He Fei Director, CFO 57,103 0 0.00%
Jiang Peng Secretary of the Board 57,103 0 0.00%
Zhan Lumei Employee supervisor 17,131 0 0.00%
Changes in asset management institutions during the reporting period
□ Applicable √Not applicable
Changes in equity caused by holders' disposal of shares during the reporting period
√ Applicable □ Not applicable
During the reporting period, all the shares held by the first employee stock ownership plan of the
Company were reduced by centralized bidding. According to the relevant provisions of the
Administrative Measures for the First Employee Stock Ownership Plan and the First Employee Stock
Ownership Plan of Shenzhen Textile (Group) Co., Ltd., the employee stock ownership plan in this
phase has been implemented and terminated ahead of schedule, and the Company has completed the
liquidation and income distribution of related assets in accordance with the provisions of the employee
stock ownership plan in this phase. For details, please refer to the Announcement on Completion and
Early Termination of the First Employee Stock Ownership Plan (No.2022-34) disclosed by the
Company on CNINF (http://www.cninfo.com.cn) on September 8, 2022.
Exercise of shareholders' rights during the reporting period
During the reporting period, the Company's ESOP was not involved in the voting of the Company's
general meeting of shareholders and exercise other shareholders' rights.
Other relevant information and description of ESOP during the reporting period
□ Applicable √Not applicable
The membership of the ESOP Management Committee has changed.
57
2022 Annual Report
□ Applicable √Not applicable
Financial impact of ESOP on listed companies in the reporting period and related accounting treatment
□ Applicable √Not applicable
Termination of ESOP during the reporting period
√Applicable □Not applicable
Other note
None
3. Other employee incentives
□ Applicable √Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
During the reporting period, the Company timely updated and improved the internal control system
according to the Basic Standards for Enterprise Internal Control and its supporting guidelines, and
established a scientific, concise, applicable and effective internal control system. The Audit Committee
and the Risk Control Audit Department jointly formed the Company's risk internal control management
organization system to supervise and evaluate the Company's internal control management. Through the
operation, analysis and evaluation of the Company's internal control system, the risks in operation and
management are effectively prevented, and the realization of internal control objectives is promoted.
According to the identification of major internal control defects in the Company's financial report, there
were no major internal control defects in the financial report on the base date of the internal control
evaluation report. In accordance with the requirements of enterprise internal control standard system
and relevant regulations, the Company has maintained effective internal control of financial reports in
all major aspects.
According to the identification of major defects in the internal control of the Company's non-financial
reports, the Company found no major defects in the internal control of non-financial reports on the base
date of the internal control evaluation report.
2. Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
Problems Subsequent
Measures taken for
Company name Integration plan Integration progress encountered in Solution progress planned
solution
integration solution
Not
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
applicable
58
2022 Annual Report
XIV.Internal control self-evaluation report or internal control audit report
1.Self-evaluation report on internal control
Disclosure date of appraisal report on
April 4,2023
internal control
Disclosure index of appraisal report on Juchao Website:（http://www.cninfo.com.cn）, Self-evaluation report of internal
internal control control in 2022
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
Standards of Defects Evaluation
Category Financial Report Non-financial Report
In the following circumstances, the
company was identified as existing non-
financial –reporting related significant
defects of internal controlling defects:
The business activities of the company
seriously violated national laws and
Defects related to financial reporting can regulations; (2) The decision-making
be divided into general defects, process of "Three-Importance& One-
important defects, and significant defects Large" were unscientific, leading to
according to their severity. major decision errors, and causing major
"Major defect" refers to a combination of property loses to the company; (3)
one or more control defects that may Massive loss of key posts or technology
cause an enterprise to seriously deviate talents; (4) The controlling system
from its control objectives. involving important business fields of the
"Significant defect" refers to a company failed; (5) It Caused serious
Qualitative standard
combination of one or more control negative effects on business of the
defects, whose severity and economic company, and the effects couldn’t be
consequences are lower than those of eliminated; (6) The evaluation results of
significant defects, but may still lead to a internal control were significant defects,
deviation of the enterprise from its and couldn’t get effective rectification.
control objectives. Important defects referred to one or
General defects refer to other internal multiple combinations of controlling
control defects that do not constitute defects, and their severity and economic
significant defects or significant defects. consequences were below significant
defects, but they could still lead to
serious deviation from the controlling
objectives. General defects referred to
other internal controlling defects which
couldn't constitute significant defects or
important defects.
Misstatement amount of financial
statement fell into the following
intervals: significant defects:
Misstatement amount ≥ 1.5% of total
revenue; Misstatement amount ≥ 10% of
gross profit; Misstatement amount ≥ 5%
of net asset. significant defects: 0.5% of
Quantitative criteria Total revenue ≤Misstatement amount ＜ Not applicable
1.5% of total revenue; 5% of gross profit
≤Misstatement amount ＜ 10% of gross
profit; 3% of Net assets ≤Misstatement
amount ＜ 5% of net assets. General
defects:0% of total revenue ＜
Misstatement amount＜0.5% of Total
revenue; 2% of gross profit ＜
59
2022 Annual Report
Misstatement amount＜5% of total
profit; 0% of net assets ＜Misstatement
amount＜3% of net assets.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
2. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
As of December 31, 2022, Shenzhen Textile Group has maintained effective internal control over financial reporting in all
material aspects in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure date of audit report
Disclosure
of internal control
Index of audit report of
April 4,2023
internal control
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）
Type of audit report on internal control Unqualified auditor’s report
Whether there is significant defection non-financial report No
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the
Board of Directors
√Yes □No
60
2022 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment
authorities
√ Yes □ No
Policies and industry standards related to environmental protection
(I) SAPO Photoelectric:
1. Names of implementation standards for air pollutant emission:
① Emission Standard of Air Pollutants for Coal-burning Oil-burning Gas-fired Boiler (DB44/765-2019);
② Emission Limit of Air Pollutants DB44/ 27—2001;
③ The limit value of electronic components in the electronic industry in Tianjin's Emission Control
Standard for Volatile Organic Compounds in Industrial Enterprises (DB12/524-2020) shall be
implemented;
④ Emission Standards for Odor Pollutants (GB 14554-93), Standard for Fugitive Emission of Volatile
Organic Compounds (GB 37822-2019).
2. Names of implementation standards for water pollutant discharge:
① Discharge Limit Standard for Water Pollutants in Guangdong Province (DB44/26-2001)
(II) Beauty Century
1.Regulations of Guangdong Province on Environmental Protection
2.Administrative Measures for Ecological Environment Standards
Environmental protection administrative license
(I) SAPO Photoelectric: The existing sewage discharge permit was applied on September 7, 2022, and is
valid from December 13, 2022 to December 12, 2027.
(II) Beauty Century: The existing sewage discharge permit is valid from August 10, 2020 to August 9,
2023.
Industrial emission standards and the specific situation of the pollutant emission involved in the
production and business activities
Main
Main Emissio Emissio Impleme
Compan pollutant Excessiv
pollutant Emissi n port n nted Verified
and Total e
y or and Emission on port distributi concentr pollutant total
specific emission emission
subsidiar specific way numbe on ation emission emission
pollutant conditio
y name pollutant r conditio (mg/Nm standard (Tons)
Typeam n
name n 3)
s
e
The
discharg
e port is
Non located
SAPO High
Waste methane on the <50mg/ 120mg/
Photoele altitude 4 21.9t/a 49.98t/a No
gases hydrocar east side m3 m3
ctric emission
bon of No.1
and No.3
plants
roof
61
2022 Annual Report
Open
Southeas
SAPO trench
t side of <20mg/ 25.0536/
Photoele Effluents COD discharge 1 40mg/L 3.9347/a No
the L a
ctric after
factory
treatment
Permissi
ble
discharg
e value:
PH Discharg
COD, value: 6- e Limit
ammoni 9; Standard
a Aniline: for
nitrogen, 1.0 Water
PH mg/L; Pollutant
value, Atmospher Suspend s
suspende e: ed DB44/2
d solids, unorganize solids: 6-2001,
five-day d; 50mg/L; Discharg
BOD, wastewate Total e
total r: 1. nitrogen Standard
phospho Intermitten (calculat of Water Ammoni Ammoni
rus t ed as N) Pollutant a a
(calculat discharge, 15 s in nitrogen: nitrogen:
ed as P), with mg/L; Danshui 0.27 t/a; 0.27 t/a;
22°43′38
chromati unstable Ammoni River Total Total
.14″
city, and a and nitrogen nitrogen
Longitud
aniline, irregular nitrogen: Shima (calculat (calculat
e:
Beauty chlorine flow rate 8 mg/L; River ed as N) ed as N)
Effluents 1 114°15′3 No
Century dioxide, during Sulfide: Basin 6.75 t/a; 6.75 t/a;
1.36″
sulfide, discharge, 0.5 DB44/2 Total Total
Latitude:
total which mg/L; 050- phospho phospho
22°43′38
nitrogen however is Chemica 2017, rus rus
.14
(calculat not impact l oxygen Discharg (calculat (calculat
ed as N), discharge; demand: e ed as P) ed as P)
ammoni 2. 60 Standard 0.0135t/ 0.0135t/
a Intermitten mg/L; of Water a a
(ammoni t Chlorine Pollutio
a gas), discharge, dioxide: n in
non- with stable 0.5 Dyeing
methane flow mg/L; and
total during Chromat Finishin
hydrocar discharge icity 50; g Textile
bons, Five-day Industry
sulfide BOD: 20 GB4287
and odor mg/L; -
(concent Total 2012GB
ration) phospho 4287-
rus 2012.
(calculat
ed as P)
0.5
mg/L;
62
2022 Annual Report
The treatment of the pollutants
（I）SAPO Photoelectric
RTO waste gas regenerative incineration process is adopted for the organic waste gas produced in all production
lines of SAPO Photoelectric, and RTO+ advanced treatment process is adopted for Line 7. RTO waste gas
treatment equipment runs stably, with good waste gas treatment effect. The removal rate of VOCs in organic waste
gas reaches over 99%, which can fully meet the requirements of waste gas discharge. Meanwhile, imported heat
storage materials are adopted for the equipment, with a heat storage effect of 90%, and low running energy
consumption of the equipment; After RTO treatment, the waste gas from the production process after treatment can
meet the discharge standard. The wastewater treatment facility of SAPO Photoelectric Phase I adopts the
wastewater treatment process of Fenton + sedimentation + UASB anaerobic + aerobic + MBR membrane, which
has strong impact load resistance, stable system operation, low energy consumption, low maintenance cost, high
degree of automation and good effluent effect. In phase II, it adopts Fenton + sedimentation + UASB anaerobic +
aerobic + MBR membrane + mc membrane treatment + evaporation system, and all the wastewater is recycled to
the production line after treatment. All the wastewater of SAPO Photoelectric can meet the environmental
protection requirements after being treated by the treatment facilities.
（II）Beauty Century
Beauty Century has established a set of special wastewater treatment facilities, and continuously optimized and
upgraded the facilities and processes in the actual operation process to treat the wastewater professionally through
multiple processes, with good operation effect, and all pollutant indicators in line with relevant standards, laws and
regulations. In addition, Shenzhen Beauty Century built the reclaimed water reuse system in 2021, which can
effectively save water consumption and reduce wastewater discharge after the system was put into operation.
Environmental Self-Monitoring Program
（I）SAPO Photoelectric
According to the monitoring requirements issued by the monitoring station and the operation requirements of each
system of SAPO Photoelectric, the specific monitoring plan is as follows: 8 times/year (twice every quarter) for
organic waste gas, 4 times/year (once every quarter) for wastewater discharge, 2 times/year (once every six months)
for boiler waste gas, 1 time/year for canteen oil fume, 2 times/year (once every six months) for noise at factory
boundary and 1 time/year for drinking water.
（II）Beauty Century
1. Implement emission standards and limits
The sewage and wastewater produced during the operation of Beauty Century is mainly industrial wastewater from
dyeing workshops. After being collected, the industrial wastewater enters the self-built wastewater treatment
station in the plant area for centralized treatment, to reach the stricter values in the Discharge Standard of Water
Pollutants for Dyeing and Finishing Textile Industry (GB4287-2012) and the Discharge Standard of Water
Pollutants in Danshui River and Shima River Basin (DB44/2050-2017), as shown in Table 1.
Table 1 Discharge Standard of Production Wastewater Unit: mg/L (pH dimensionless)
Monitoring position of pollutant discha
S/N Pollutant Discharge limit
rge
1 pH 6~9
Total sewage outlet
2 Aniline 1.0
63
2022 Annual Report
3 Suspended solids 50
4 Total nitrogen 15
5 Ammonia nitrogen 8
6 Sulfide 0.5
7 CODCr 60
8 Chlorine dioxide 0.5
9 Chromaticity 50
10 Five-day BOD 20
11 Total phosphorus 0.5
2. Monitoring indicators and frequency
① Wastewater
The monitoring indicators and frequency of industrial wastewater are determined according to the requirements
of environmental management, as shown in Table 2.
Table 2 Monitoring Indicators and Frequency of Industrial Wastewater
Monitoring point Monitoring indicator Monitoring frequency
PH value, flow rate, COD, ammonia nitrogen Automatic monitoring
Chromaticity, suspended solids, total nitrogen
1 time/day
and total phosphorus
DW001
Five-day BOD 1 time/week
Sulfide, aniline, 1 time/month
Chlorine dioxide 1 time/year
② Waste gas
The monitoring indicators and frequency of waste gas at boundary are determined according to the requirements
of environmental management, as shown in Table 3
Table 3 Monitoring Indicators and Frequency of Waste Gas at Boundary
Monitoring point Monitoring indicator Monitoring frequency
Concentration of ammonia, non-methane
Boundary 1 time every six months
hydrocarbon, sulfide and odor
3. Sampling and monitoring methods
The wastewater is entrusted to a third-party testing institution for testing. The daily testing of total nitrogen and total
phosphorus in wastewater, the weekly testing of BOD and the monthly testing of sulfide are all performed by test
paper.
The waste gas is entrusted to a third-party testing institution for testing. Refer to relevant national standards for the
monitoring and analysis methods.
4. Monitoring quality assurance and control measures
The quarterly monitoring of wastewater and the semi-annual monitoring of waste gas in Beauty Century
are entrusted to a third-party monitoring unit.
Beauty Century has a sound environmental management institution system, established a relatively complete
environmental management system, and formulated a series of environmental management systems, such as
64
2022 Annual Report
environmental management system, emergency measures for environmental accidents, energy-saving management
regulations, and solid waste management system.
Emergency plan for sudden environmental events
(I) SAPO Photoelectric
According to the actual situation of the company, the emergency plan for sudden environmental incidents has
been compiled, and the application for filing the emergency plan for sudden environmental incidents by relevant
departments has been passed.
（II）Beauty Century
According to the actual situation of the company, the emergency plan for sudden environmental incidents has
been compiled, and the application for filing the emergency plan for sudden environmental incidents by relevant
departments has been passed.
Investment in environmental governance and protection and the relevant payment of environmental protection
tax
(I) SAPO Photoelectric
Investment in environmental governance and protection in 2022: RMB 22,657,100;
Environmental protection tax paid in 2022: RMB 40,417.
（II）Beauty Century
Investment in environmental governance and protection in 2022: RMB 1,100,000;
Environmental protection tax paid in 2022: RMB 41,352,500.
Cost of purchasing environmental liability insurance: RMB 12,116.85.
Measures taken to reduce its carbon emissions during the reporting period and their effects
Applicable □Not applicable
(I) SAPO Photoelectric
During the reporting period, SAPO Photoelectric strictly abided by laws and regulations, strictly controlled the
company's waste gas and wastewater discharge, and ensured the effective operation of waste gas and
wastewater treatment facilities. No violations occurred throughout the year.
（II）Beauty Century
During the reporting period, Shenzhen Beauty Century strictly abided by laws and regulations, strengthened the
management of wastewater treatment, and ensured the effective operation of wastewater treatment facilities. No
violations occurred throughout the year.
Administrative penalties for environmental problems during the reporting period
Impact on the
Company's
Name of company or Reasons for production and
Violation situation Penalty result rectification
subsidiary punishment operation of listed
measures
companies
SAPO Photoelectric No No No No No
Beauty Century
Other Environmental Information That Should Be Disclosed
(I)SAPO Photoelectric
65
2022 Annual Report
1.Annual report on disclosure of enterprise environmental information according to law: https://www-
app.gdeei.cn/stfw/index
2.Annual implementation report of pollutant discharge permit: http://permit.mee.gov.cn/
(II)Beauty Century
None
Other Environmental Related Information
None
II. Social responsibilities
(I) Protection of shareholders' rights and interests
During the reporting period, the Company abided by laws and regulations, operated in compliance with
regulations, and constantly improved its governance structure and further standardized the Company's operation in
strict accordance with the requirements of the Company Law, the Securities Law and the Governance Guidelines
for Listed Companies and other laws and regulations. It adhered to the procedure system of general meeting of
shareholders, Board of Directors, Board of Supervisors and independent directors as the core, further improved
the corporate governance structure and various management systems, constantly improved the internal control
system in the process of the Company's operation and management, took effective operational risk prevention
measures, earnestly safeguarded and protected shareholders' rights and interests, and laid a solid foundation for
the healthy and sustainable development of the Company. Independent directors paid close attention to the
Company's operation, put forward many valuable professional suggestions for the Company's daily operation and
key concerns, and played an important role in improving the supervision mechanism and safeguarding the
legitimate rights and interests of the Company and all shareholders. The Company strictly fulfilled its obligation
of information disclosure according to law, truly, accurately, completely, timely and fairly disclosed information
that has a significant impact on investment decision-making. The disclosure content was concise and easy to
understand, fully revealed risks, and facilitated all shareholders to consult. According to regulatory requirements,
it further combed and improved relevant systems and enhanced the quality of information disclosure.
During the reporting period, the Company further improved the information disclosure and information
transparency, fulfilled the obligation of information disclosure in strict accordance with regulatory requirements,
communicated with investors through various channels, answered questions raised by investors in a timely
manner, and improved information transparency. Meanwhile, it cooperated with regulatory authorities to
safeguard the rights and interests of investors, especially small and medium-sized investors, and realized the
benign interaction and harmonious development between investors and listed companies.
(II) Protection of employees' rights and interests
According to the enterprise development strategy, the Company further revised and improved the human resource
management system. It established labor relations by entering into labor contracts with employees, and implement
necessary management for employees according to the Labor Law and relevant management regulations of the
Company. The Company established a scientific assessment and distribution system according to the classification
of senior managers, department managers and employees, established a systematic and standardized performance
assessment and evaluation system, and conducted a comprehensive, objective, fair and accurate assessment of
employees' performance of duties and tasks, which is used as the basis for determining employees' remunerations,
rewards and punishments and appointments. It conducted market-based selection and employment, created a good
environment for talent development, and constantly stimulated innovation vitality and motivation.
In 2022, the Company strived to create a good corporate culture atmosphere, strengthen the psychological care for
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2022 Annual Report
employees, listen to their inner voices, and enhance employees' sense of gain and belonging; Meanwhile, it further
enhanced the Group leaders' understanding of the mind state of grass-roots employees, better cared for and helped
employees to grow into talents, and regularly organized face-to-face communication between the Company
leaders and the core backbone of the Group employees and subordinate enterprises.
In the meantime, the Company newly revised 3 human resource management systems, namely, the Management
Measures of Shenzhen Textile Group's Rank Promotion, the Management System of Shenzhen Textile Group's
Staff Performance Appraisal and the Interim Measures of Shenzhen Textile Group's Annual Advanced Selection,
and optimized and improved the Company's personnel training, performance compensation management and rank
promotion. It actively guided and assisted subordinate enterprises to promote various human resource
management norms, and guided enterprises to strengthen remuneration performance management and make
reasonable adjustments to employees' remuneration level according to the actual situation of each enterprise. It
strengthened the scientific and standardized management of human resources, avoided labor risks, improved the
level of human resources management, and further mobilized the enthusiasm of employees.
(III) Environmental protection
Striving to build a modern "green enterprise" is the Company's long-term positive responsibility. We insist on
building the whole process of green cycle in the industrial chain, realizing the real green cycle economy,
improving the quality of the Company's surrounding environment and escorting the Company's production.
During the reporting period, the OSBL noise, industrial wastewater and waste gas emissions in the Company's
production process all passed the monitoring of the environmental protection department, and complied with the
standard requirements of relevant laws and regulations. During the reporting period, the Company's organic waste
gas was treated by the rotary RTO treatment process, and the removal rate of VOCs in organic waste gas reached
over 99%. On the basis of meeting the discharge standards, the pollutant discharge was further reduced, and no
major environmental incidents occurred. In addition, the Company vigorously advocated green office, carried out
various forms of environmental protection publicity and education activities, raised employees' awareness of
energy conservation and emission reduction, realized the coordinated development of production & operation and
environmental protection, and earnestly fulfilled social responsibilities.
(IV) Protection of consumers' rights and interests
The Company has been adhering to the core values of "honesty oriented and responsibility first". Being
responsible for customers is the source of our enterprise value. It is our unremitting pursuit to provide customers
with professional, personalized and all-round products and services. With customer demand as the core,
continuously innovating to serve customers, and continuously improving and enhancing product quality are the
driving force for the Company to achieve good performance and sustainable development, and also an important
guarantee to win customers' long-term trust. It has provided active attention to customer needs, quick response to
customer feedback, sincere consideration for customers and promotion of long-term cooperative partnership.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
In 2022, the company earnestly fulfilled its social responsibility, actively participated in the work of consumer
assistance, and completed the purchase of 555,300 yuan of consumer assistance in the year to help rural
revitalization; In response to the initiative of Shenzhen Investment & Control 2022 "Investment & Control with
Love Helping People's Livelihood 1+1" theme public welfare activity, the company donated 381 sets of thermal
underwear to poverty-stricken areas in Guangxi, demonstrating its corporate responsibility.
67
2022 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior
management personnel and other related parities.
√Applicable □Not applicable
Commitment Time of making Period of
Commitment Type Contents Fulfillment
maker commitment commitment
As Shenzhen Investment Holdings Co.,
Ltd., the controlling shareholder of the
company, committed when the restricted-
for-sale shares from the shares
restructuring were listed for circulation in
the market: i. if they plan to sell the
shares through the securities exchange
system in the future, and the decrease of
Shenzhen Share
Commitmen the shares they hold reaches 5% within 6 Sustained Under
Investment reduction August 4,
t on share months after the first decrease, they will and Fulfillmen
Holdings commitme 2006
reform disclose an announcement indicating the effective t
Co., Ltd. nt
sale through the company within two
trading days before the first decrease; ii.
They shall strictly observe the
“Guidelines on Transfer of Restricted-for-
sale Original Shares of Listed
Companies” and the provisions of the
relevant business principles of Shenzhen
Stock Exchange.
Commitments made during asset
restructuring: 1. The relevant information
provided by the Company during this
transaction is authentic, accurate and
complete, and it is guaranteed that there
are no false records, misleading
statements or major omissions, and the
Statement Company will bear individual and joint
and legal responsibilities for the authenticity,
Commitm accuracy and completeness of the
ent on the information provided. If there are false
Authentici records, misleading statements or major
Commitmen
ty, omissions in the information provided, Sustained Under
t made upon The December
Accuracy which cause losses to the company or and Fulfillmen
the assets Company 30,2022 effective t
and investors, the Company will be liable for
replacement
Complete compensation according to law; 2. The
ness of the Company will submit relevant
Informatio information, documents and materials
n (including but not limited to original
Provided written materials, electronic materials,
duplicate materials and oral testimony)
required for this transaction to relevant
intermediaries in a timely manner, and at
the same time it promises that the
information and documents provided are
authentic, complete and accurate, the
relevant duplicate materials or
68
2022 Annual Report
photocopies are consistent with the
original, all signatures and seals on the
documents are authentic and valid, and
the photocopies are consistent with the
original, and the signatories of these
documents have legally authorized and
effectively signed the documents, and that
there are no false records, misleading
statements or major omissions; 3. The
Company guarantees the authenticity and
rationality of the relevant data quoted in
this transaction plan. As of the signing
date of this transaction plan, the audit and
evaluation related to this transaction have
not been completed. The audited financial
data, evaluation or valuation results of the
underlying assets and the audited profit
forecast data (if involved) will be
disclosed in the Restructuring Report.
The audited financial data of the
underlying assets may be quite different
from the disclosure of the plan; 4. During
this transaction, the Company will timely
disclose information about this
transaction in accordance with relevant
laws and regulations, and relevant
regulations of China Securities
Regulatory Commission and Shenzhen
Stock Exchange, and guarantee the
authenticity, accuracy and completeness
of such information.
Commitments made during asset
restructuring:
1. The relevant information provided by
me during this transaction is authentic,
accurate and complete, and it is
guaranteed that there are no false records,
misleading statements or major
Statement omissions, and I will bear individual and
and joint legal responsibilities for the
Commitm authenticity, accuracy and completeness
All the ent on the of the information provided. If there are
directors, Authentici false records, misleading statements or
Commitmen
supervisors ty, major omissions in the information Sustained Under
t made upon December
and senior Accuracy provided, which cause losses to the and Fulfillmen
the assets 30,2022 effective t
managers of and company or investors, I will be liable for
replacement
the Complete compensation according to law. 2. I will
company ness of the submit relevant information, documents
Informatio and materials (including but not limited to
n original written materials, electronic
Provided materials, duplicate materials and oral
testimony) required for this transaction to
the company and relevant intermediaries
in a timely manner, and at the same time I
promise that the information and
documents provided are authentic,
complete and accurate, the relevant
duplicate materials or photocopies are
69
2022 Annual Report
consistent with the original, all signatures
and seals on the documents are authentic
and valid, and the photocopies are
consistent with the original, and the
signatories of these documents have
legally authorized and effectively signed
the documents, and that there are no false
records, misleading statements or major
omissions. 3. During this transaction, I
will timely disclose information about
this transaction in accordance with
relevant laws and regulations, and
relevant regulations of China Securities
Regulatory Commission and Shenzhen
Stock Exchange, and guarantee the
authenticity, accuracy and completeness
of such information. 4. If this transaction
is investigated by the judicial authorities
or by the China Securities Regulatory
Commission because of false records,
misleading statements or major omissions
in the information provided or disclosed
by me, I will suspend the transfer of the
shares in the company before the
conclusion of the case investigation is
determined, and submit a written
application for suspension of the transfer
and the stock account to the board of
directors of the company within two
trading days after receiving the notice of
filing the investigation, and the board of
directors of the company will apply to the
Shenzhen Stock Exchange and Shenzhen
Branch of China Securities Depository
and Clearing Co., Ltd. (hereinafter
referred to as "CSDC") for locking; If the
application for locking is not submitted
within two trading days, the board of
directors of the company is authorized to
directly submit my identity information
and account information to Shenzhen
Stock Exchange and CSDC after
verification and apply for locking; If the
board of directors of the listed company
fails to submit my identity information
and account information to Shenzhen
Stock Exchange and CSDC, Shenzhen
Stock Exchange and CSDC are
authorized to directly lock the relevant
stocks. If any violation of laws and
regulations is found during the
investigation, I promise to lock in the
shares and voluntarily use them for
compensation arrangements of relevant
investors.
All the Statement Commitments made during asset Sustained Under
Commitmen December
directors, and restructuring: and Fulfillmen
t made upon 30,2022 effective t
supervisors Commitm 1. There are no false records, misleading
70
2022 Annual Report
the assets and senior ent on No statements or major omissions in the
replacement managers of Illegal application documents for this
the Acts transaction; 2. The rights and interests of
company the listed company are not seriously
damaged by the controlling shareholder
or actual controller and have not been
eliminated; 3. The listed company and its
subsidiaries do not provide external
guarantees in violation of regulations and
have not been lifted; 4. The listed
company's financial statements for the
latest year and the first stage have no
audit reports with qualified opinions,
negative opinions or disclaimer of
opinions issued by certified public
accountants; 5. The listed company and
its current directors, supervisors and
senior managers have not been subjected
to administrative punishment by the
China Securities Regulatory Commission
in the last 36 months, and nor have they
been publicly condemned by the stock
exchange or found with other major acts
of dishonesty in the last 12 months; 6.
The listed company and its current
directors and senior managers have not
been investigated by the judicial
authorities for suspected crimes or by the
China Securities Regulatory Commission
for suspected violations of laws and
regulations, including but not limited to
receiving or foreseeing the
decision/notice of filing investigation by
the judicial authorities, the notice of filing
investigation by the China Securities
Regulatory Commission and its
dispatched institutions, and the advance
notice of administrative punishment, and
there is no administrative punishment
(except those obviously unrelated to the
securities market) or criminal
punishment; 7. The listed company has
no other circumstances that seriously
damage the legitimate rights and interests
of investors and social public interests; 8.
The directors, supervisors and senior
managers of the listed company do not
disclose the relevant inside information of
this transaction and use the inside
information for insider trading.
Explanati Commitments made during asset
All the
on on the restructuring:
directors,
Commitmen Absence The listed company, its directors,
supervisors Sustained Under
t made upon of the supervisors, senior managers and the December
and senior and Fulfillmen
the assets Circumsta enterprises controlled by the above- 30,2022 effective t
managers of
replacement nces mentioned entities have not been placed
the
Stipulated on file for investigation on suspicion of
company
in Article insider trading related to this transaction;
71
2022 Annual Report
13 of the In the last 36 months, they have not been
Guidance punished by the China Securities
on Regulatory Commission or investigated
Supervisio by the judicial organs for criminal
n of responsibility according to law for insider
Listed trading related to major asset
Companie restructuring of listed companies, which
s No.7 - does not allow them to participate in any
Supervisio major asset restructuring of listed
n of companies.
Abnormal
Trading of
Stocks
Related to
Major
Asset
Restructur
ing of
Listed
Companie
s.
All the
Explanati Commitment made during asset
directors,
Commitmen on on restructuring: From the date of
supervisors Sustained Under
t made upon Whether resumption of trading to the completion December
and senior and Fulfillmen
the assets There is a of this transaction, if I hold shares of the 30,2022 effective t
managers of
replacement Reduction listed company, I have no plans to reduce
the
Plan the shares of the listed company.
company
Commitment made during asset
restructuring: 1. The relevant information
provided by the Company during this
transaction is authentic, accurate and
complete, and it is guaranteed that there
are no false records, misleading
statements or major omissions, and the
Company will bear individual and joint
legal responsibilities for the authenticity,
Statement
accuracy and completeness of the
and
information provided. If there are false
Commitm
records, misleading statements or major
ent on the
omissions in the information provided,
Authentici
Commitmen Shenzhen which cause losses to the listed company
ty, Sustained Under
t made upon Investment or investors, the Company will be liable December
Accuracy and Fulfillmen
the assets Holdings for compensation according to law; 2. 30,2022 effective t
and
replacement Co., Ltd. The Company will submit relevant
Complete
information, documents and materials
ness of the
(including but not limited to original
Informatio
written materials, electronic materials,
n
duplicate materials and oral testimony)
Provided
required for this transaction to the listed
company and relevant intermediaries in a
timely manner, and at the same time it
promises that the information and
documents provided are authentic,
complete and accurate, the relevant
duplicate materials or photocopies are
consistent with the original, all signatures
and seals on the documents are authentic
72
2022 Annual Report
and valid, and the photocopies are
consistent with the original, and the
signatories of these documents have
legally authorized and effectively signed
the documents, and that there are no false
records, misleading statements or major
omissions; 3. During this transaction, the
Company will timely disclose
information about this transaction in
accordance with relevant laws and
regulations, and relevant regulations of
China Securities Regulatory Commission
and Shenzhen Stock Exchange, and
guarantee the authenticity, accuracy and
completeness of such information;4. If
this transaction is investigated by the
judicial authorities or by the China
Securities Regulatory Commission
because of false records, misleading
statements or major omissions in the
information provided or disclosed by the
Enterprise, the Enterprise will suspend
the transfer of shares with interests in the
listed company, and submit the written
application for suspension of transfer and
the stock account to the board of directors
of the listed company within two trading
days after receiving the notice of filing
the investigation, and the board of
directors of the listed company will apply
to the Stock Exchange and the Depository
and Clearing Company for locking on its
behalf; If the application for locking is
not submitted within two trading days,
the board of directors of the listed
company shall be authorized to directly
submit the identity information and
account information of the Enterprise to
the Stock Exchange and the Depository
and Clearing Company after verification
and apply for locking; If the board of
directors of the listed company fails to
submit the identity information and
account information of the Enterprise to
the Stock Exchange and the Depository
and Clearing Company, the Stock
Exchange and the Depository and
Clearing Company are authorized to
directly lock the relevant shares. If any
violation of laws and regulations is found
during the investigation, the Enterprise
promises to lock in the shares and
voluntarily use them for compensation
arrangements of relevant investors.
Shenzhen Commitm Commitment made during asset
Commitmen Sustained Under
Investment ent on restructuring: 1. The Company has not December
t made upon and Fulfillmen
Holdings Complian been subjected to administrative 30,2022 effective t
the assets
Co., Ltd. ce and punishment (except those obviously
73
2022 Annual Report
replacement Integrity unrelated to the securities market) or
criminal punishment in the last three
years; 2. The Company is in good credit,
with no public condemnation by the stock
exchange or other major dishonesty in the
last 12 months; In the last three years, the
Company has not been placed on file for
investigation by the judicial authorities
for suspected crimes or by the China
Securities Regulatory Commission for
suspected violations of laws and
regulations; 3. The Company does not
disclose the relevant inside information of
this transaction or use the inside
information for insider trading; 4. The
Company does not infringe the rights and
interests of the listed company; 5. The
Company guarantees that it is willing to
bear corresponding legal responsibilities
if it violates the above statements and
commitments.
Explanati
on on the
Absence
of the
Circumsta
nces
Stipulated
Commitment made during asset
in Article
restructuring: Shenzhen Investment
13 of the
Holdings and all its directors, supervisors,
Guidance
senior managers and the enterprises
on
controlled by the above-mentioned
Supervisio
entities have not been placed on file for
n of
Commitmen Shenzhen investigation due to insider trading
Listed Sustained Under
t made upon Investment related to major asset restructuring; In the December
Companie and Fulfillmen
the assets Holdings last 36 months, they were not subjected to 30,2022 effective t
s No.7 -
replacement Co., Ltd. administrative punishment imposed by
Supervisio
China Securities Regulatory Commission
n of
or investigated for criminal responsibility
Abnormal
by judicial organs according to law,
Trading of
which does not allow them to participate
Stocks
in any major asset restructuring of listed
Related to
companies.
Major
Asset
Restructur
ing of
Listed
Companie
s
Explanati Commitment made during asset
Commitmen Shenzhen on on restructuring: During the period from the
Sustained Under
t made upon Investment Whether date of resumption of this restructuring to December
and Fulfillmen
the assets Holdings There is a the completion of this restructuring, the 30,2022 effective t
replacement Co., Ltd. Reduction Company has no plans to reduce the
Plan shares of listed company.
Qimei Statement Commitment made during asset December Sustained Under
Commitmen and Fulfillmen
Material, and restructuring: 1. The relevant information 30,2022
74
2022 Annual Report
t made upon Haosheng Commitm provided by the Enterprise during this effective t
the assets Danyang, ent on the transaction is authentic, accurate and
replacement Danyang Authentici complete, and it is guaranteed that there
Ruoyan, ty, are no false records, misleading
Xiamen Accuracy statements or major omissions, and the
Ruoyan, and Enterprise will bear individual and joint
Fuzhou Complete legal responsibilities for the authenticity,
Xintou, ness of the accuracy and completeness of the
Hefei Informatio information provided. If there are false
Beicheng, n records, misleading statements or major
Hangzhou Provided omissions in the information provided,
Rencheng, which cause losses to the listed company
Xinghe or investors, the Enterprise will be liable
Technology for compensation according to law; 2.
, lishui The Enterprise will submit relevant
Huahui, information, documents and materials
Huzhou (including but not limited to original
Painuo, written materials, electronic materials,
Lishui duplicate materials and oral testimony)
Tengbei, required for this transaction to the listed
Fuzhou company and relevant intermediaries in a
Investment, timely manner, and at the same time it
Xiamen promises that the information and
Zhifeng, documents provided are authentic,
Jiaxing complete and accurate, the relevant
Painuo, duplicate materials or photocopies are
Huzhou consistent with the original, all signatures
Zhekuang, and seals on the documents are authentic
Guangdong and valid, and the photocopies are
Xingzhi, consistent with the original, and the
Guangzhou signatories of these documents have
Boyue legally authorized and effectively signed
the documents, and that there are no false
records, misleading statements or major
omissions; 3. The Enterprise guarantees
that it has fulfilled its statutory disclosure
and reporting obligations on this
transaction, and there are no contracts,
agreements, arrangements or other
matters that should be disclosed but not
disclosed. The Enterprise is aware of the
possible legal consequences of the above
commitments, and will bear
corresponding legal responsibilities for
acts that violate the above commitments;
4. If this transaction is investigated by the
judicial authorities or by the China
Securities Regulatory Commission
because of false records, misleading
statements or major omissions in the
information provided or disclosed by the
Enterprise, the Enterprise will suspend
the transfer of shares with interests in the
listed company, and submit the written
application for suspension of transfer and
the stock account to the board of directors
of the listed company within two trading
days after receiving the notice of filing
75
2022 Annual Report
the investigation, and the board of
directors of the listed company will apply
to the Stock Exchange and the Depository
and Clearing Company for locking on its
behalf; If the application for locking is
not submitted within two trading days,
the board of directors of the listed
company shall be authorized to directly
submit the information and account
information of the Enterprise to the Stock
Exchange and the Depository and
Clearing Company after verification and
apply for locking; If the board of
directors of the listed company fails to
submit the information and account
information of the Enterprise to the Stock
Exchange and the Depository and
Clearing Company, the Stock Exchange
and the Depository and Clearing
Company are authorized to directly lock
the relevant shares. If any violation of
laws and regulations is found during the
investigation, the Enterprise promises to
lock in the shares and voluntarily use
them for compensation arrangements of
relevant investors.
Commitment made during asset
restructuring: 1. The penalties, regulatory
measures or disciplinary actions suffered
by the Enterprise and its key management
personnel in the last five years are as
follows: (1) Mr. Chen Rongsheng, the
executive director of the Enterprise,
received the Decision on Taking
Measures to Issue Warning Letters to Cai
Xiaoru, Chen Rongsheng, Liu Tieying
and Han Yang issued by Fujian
Supervision Bureau of China Securities
Regulatory Commission (Decision on
Administrative Supervision Measures of
Commitm
Commitmen Fujian Supervision Bureau of China
ent on Sustained Under
t made upon Haosheng Securities Regulatory Commission [2020] December
Complian and Fulfillmen
the assets Danyang No.6) on January 14, 2020, due to the 30,2022 effective t
ce and
replacement failure of Fuzhou Dahua Intelligent
Integrity
Technology Co., Ltd. where he served as
the general manager to disclose in time
the progress of major equity transfer, and
the breach of contract for failure to pay
off major debts due, the conclusion of
important contracts, and the insufficient
basis for impairment of available-for-sale
financial assets; (2) Mr. Chen Rongsheng,
the executive director of the Enterprise,
received the Decision on Giving informed
criticism to Fuzhou Dahua Intelligent
Technology Co., Ltd. and Related Parties
issued by Shenzhen Stock Exchange
(SZS [2019] No.311) on May 29, 2019
76
2022 Annual Report
due to the failure Fuzhou Dahua
Intelligent Technology Co., Ltd. where he
served as the general manager, to reply to
the Shenzhen Stock Exchange's inquiry
and make disclosure within the prescribed
time limit as required. In addition to the
above circumstances, the Enterprise and
its main management personnel have not
been subjected to other criminal penalties
or administrative penalties (except those
obviously unrelated to the securities
market), administrative supervision
measures by the China Securities
Regulatory Commission or disciplinary
actions by the stock exchange in the last
five years, and there is no major civil
litigation or arbitration related to
economic disputes; 2. In the last five
years, the Enterprise has not been
investigated by the judicial authorities for
suspected crimes or by the China
Securities Regulatory Commission for
suspected violations of laws and
regulations; 3. The Enterprise and its
main management personnel in the last
five years had no failure to repay large
debts, or to fulfill their commitments; 4.
The Enterprise and its main management
personnel have not disclosed the relevant
insider information of this transaction or
used the insider information for insider
trading; 5. The Enterprise has none of the
following circumstances: (1) It has a large
amount of debt, which is not paid off at
maturity and is in a continuous state; (2)
It has major illegal acts or suspected
major illegal acts in the last 3 years; (3) It
has serious acts of dishonesty in the
securities market in the last 3 years; (4)
Other circumstances stipulated by laws
and administrative regulations and
determined by China Securities
Regulatory Commission that it is not
allowed to acquire listed companies.
Commitment made during asset
restructuring: 1. The penalties, regulatory
measures or disciplinary actions imposed
on the Enterprise and its main
management personnel in the last five
Commitm
Commitmen years are as follows: (1) Ms. Zhang Qiuli
ent on Sustained Under
t made upon Hangzhou received the Decision on Administrative December
Complian and Fulfillmen
the assets Rencheng Punishment of China Securities 30,2022 effective t
ce and
replacement Regulatory Commission (for Li Shengkai
Integrity
and Zhang Qiuli of Fujian Daochong
Investment Management Co., Ltd.)
([2019] No. 2) issued by China Securities
Regulatory Commission on January 18,
2019 due to the manipulation of securities
77
2022 Annual Report
market by Fujian Daochong Investment
Management Co., Ltd., where she served
as the general manager and executive
director; (2) On March 31, 2020, Ms.
Zhang Qiuli received the Decision on
Administrative Punishment of China
Securities Regulatory Commission (for Li
Shengkai and Zhang Qiuli of Fujian
Daochong Investment Management Co.,
Ltd.) ([2020] No.11) issued by China
Securities Regulatory Commission due to
the reported and undisclosed excessive
shareholding in Jianyan Group, and
restricted trading behavior of Fujian
Daochong Investment Management Co.,
Ltd., where she served as the general
manager and executive director. In
addition to the above circumstances, the
Enterprise and its main management
personnel have not been subjected to
other criminal penalties or administrative
penalties (except those obviously
unrelated to the securities market) in the
last five years, and there is no major civil
litigation or arbitration related to
economic disputes; 2. In the last five
years, the Enterprise has not been
investigated by the judicial authorities for
suspected crimes or by the China
Securities Regulatory Commission for
suspected violations of laws and
regulations; 3. The Enterprise and its
main management personnel had no
failure to repay large debts, or to fulfill
their commitments, and were not
subjected to administrative supervision
measures by the China Securities
Regulatory Commission or disciplinary
punishment by the stock exchange in the
last five years; 4. The Enterprise and its
main management personnel have not
disclosed the relevant insider information
of this transaction or used the insider
information for insider trading; 5. The
Enterprise has none of the following
circumstances: (1) It has a large amount
of debt, which is not paid off at maturity
and is in a continuous state; (2) It had
major illegal acts or suspected major
illegal acts in the last 3 years; (3) It had
serious acts of dishonesty in the securities
market in the last 3 years; (4) Other
circumstances stipulated by laws and
administrative regulations and determined
by China Securities Regulatory
Commission that it is not allowed to
acquire listed companies.
78
2022 Annual Report
Commitment made during asset
restructuring: The Enterprise and its main
management personnel have not been
subjected to criminal penalties or
administrative penalties (except those
Qimei obviously unrelated to the securities
Material, market) in the last five years, and there is
Danyang no major civil litigation or arbitration
Nuoyan, related to economic disputes; 2. In the last
Xiamen five years, the Enterprise has not been
Nuoyan, investigated by the judicial authorities for
Fuzhou suspected crimes or by the China
Xintou, Securities Regulatory Commission for
Hefei suspected violations of laws and
Beicheng, regulations; 3. The Enterprise and its
Xinghe main management personnel had no
Technology, failure to repay large debts, or to fulfill
Lishui their commitments, and were not
Commitm
Commitmen Huahui, subjected to administrative supervision
ent on Sustained Under
t made upon Huzhou measures by the China Securities December
Complian and Fulfillmen
the assets Painuo, Regulatory Commission or disciplinary 30,2022 effective t
ce and
replacement Lishui actions by the stock exchange in the last
Integrity
Pengbei, five years; 4. The Enterprise and its main
Fuzhou management personnel have not disclosed
Investment, the relevant insider information of this
Xiamen transaction or used the insider
Zhifeng, information for insider trading; 5. The
Jiaxing Enterprise has none of the following
Painuo, circumstances: (1) It has a large amount
Huzhou of debt, which is not paid off at maturity
Zhekuang, and is in a continuous state; (2) It had
Guangdong major illegal acts or suspected major
Xingzhi, illegal acts in the last 3 years; (3) It had
Guangzhou serious acts of dishonesty in the securities
Boyue market in the last 3 years; (4) Other
circumstances stipulated by laws and
administrative regulations and determined
by China Securities Regulatory
Commission that it is not allowed to
acquire listed companies.
Qimei Explanati Commitment made during asset
material, on on the restructuring: The Enterprise and its main
Haosheng Absence management personnel (including
Danyang, of the directors, supervisors and senior
Danyang Circumsta management personnel in the case of a
Nouyan, nces company; or executive partners and key
Xiamen Stipulated management personnel in the case of a
Commitmen Nouyan, in Article partnership), the controlling shareholder
Sustained Under
t made upon Fuzhou 13 of the and actual controller of the Enterprise and December
and Fulfillmen
the assets Xintou, Guidance the enterprises controlled by the above- 30,2022 effective t
replacement Hefei on mentioned entities have not been placed
Beicheng, Supervisio on file for investigation due to insider
Hangzhou n of trading related to major asset
Rencheng, Listed restructuring; In the last 36 months, they
Xinghe Companie were not subjected to administrative
Technology, s No.7 - punishment imposed by China Securities
Lishui Supervisio Regulatory Commission or investigated
Huhui, n of for criminal responsibility by judicial
79
2022 Annual Report
Huzhou Abnormal organs according to law, which does not
Painuo, Trading of allow them to participate in any major
Lishui Stocks asset restructuring of listed companies.
Tengbei, Related to
Fuzhou Major
Investment , Asset
Xiamen Restructur
Zhifeng, ing of
Jiaxing Listed
Painuo, Companie
Huzhou s
Zhekuang,
Guangdong
Xingzhi,
Guangzhou
Boyue
Commitment made during asset
restructuring: 1. The Enterprise legally
owns the corresponding shares of the
target company, and its capital
Qimei contribution to the target assets has been
material, fully paid, and there is no false capital
Haosheng contribution or withdrawal of capital
Danyang, contribution, and the Enterprise has
Danyang complete ownership of the target assets,
Nouyan, with no other circumstances that may
Xiamen affect the legal existence of the target
Nouyan, company; 2. The Enterprise is the
Fuzhou ultimate and true owner of the underlying
Xintou, assets, and the ownership of the
Hefei underlying assets is clear with no dispute,
Beicheng, and there are no circumstances of holding
Hangzhou the underlying assets by means of trust,
Rencheng, entrusting others or accepting others'
Xinghe Explanati entrustment; The underlying assets are
Commitmen Technology, on on the not in custody, with no pledge, mortgage,
Sustained Under
t made upon Lishui Ownershi lien and other security rights or other December
and Fulfillmen
the assets Huhui, p of the third-party rights, or other terms or 30,2022 effective t
replacement Huzhou Underlyin agreements restricting transfer signed,
Painuo, g Assets and no dispute or potential dispute. The
Lishui underlying assets have not been sealed up
Tengbei, or frozen by administrative or judicial
Fuzhou organs, and there are no other restrictions
Investment , or prohibitions on transfer. The Enterprise
Xiamen guarantees that the above-mentioned state
Zhifeng, will continue until the transfer of the
Jiaxing underlying assets to the name of the listed
Painuo, company or until the date of termination
Huzhou of this transaction (whichever is earlier);
Zhekuang, 3. The Enterprise promises to change the
Guangdong ownership of the underlying assets in a
Xingzhi, timely manner according to the agreement
Guangzhou after the relevant agreement of this
Boyue transaction comes into effect, and all the
responsibilities arising from disputes
caused by the Enterprise in the process of
ownership change shall be borne by the
Enterprise; 4. The ownership of the
80
2022 Annual Report
above-mentioned underlying assets to be
transferred by the Enterprise has none of
unresolved or foreseeable disputes such
as litigation and arbitration, and the
responsibilities arising from disputes such
as litigation and arbitration shall be borne
by the Enterprise.
Commitment made during asset
restructuring: 1. The Enterprise legally
owns the corresponding shares of the
target company, and its capital
contribution to the target assets has been
fully paid, and there is no false capital
contribution or withdrawal of capital
contribution, and it has complete
ownership of the target assets, and there
is no other circumstances that may affect
the legal existence of the target company;
2. The Enterprise is the ultimate and true
owner of the underlying assets, and the
ownership of the underlying assets is
clear with no dispute, and there are no
circumstances of holding the underlying
assets by means of trust, entrusting others
or accepting others' entrustment; Except
for the pledge of 267,857,146 shares of
the underlying company held by the
enterprise, the remaining underlying
assets held by the enterprise are not in
custody, with no pledge, mortgage, lien
Explanati
and other security rights or other third-
Commitmen on on the
party rights, or other terms or agreements Sustained Under
t made upon Haosheng Ownershi December
restricting transfer signed,and no dispute and Fulfillmen
the assets Danyang p of the 30,2022 effective t
or potential dispute. The underlying
replacement Underlyin
assets have not been sealed up or frozen
g Assets
by administrative or judicial organs, and
there are no other restrictions or
prohibitions on transfer. The Enterprise
guarantees to release the aforementioned
equity pledge before the board meeting of
the listed company deliberates the report
(draft) of this restructuring, and to
maintain this state after the pledge is
released until the target assets are
transferred to the name of the listed
company or until the date of termination
of this transaction (whichever is earlier);
3. The Enterprise promises to change the
ownership of the underlying assets in a
timely manner according to the agreement
after the relevant agreement of this
transaction comes into effect, and all the
responsibilities arising from disputes
caused by the Enterprise in the process of
ownership change shall be borne by the
Enterprise; 4. The ownership of the
above-mentioned underlying assets to be
transferred by the Enterprise has none of
81
2022 Annual Report
unresolved or foreseeable disputes such
as litigation and arbitration, and the
responsibilities arising from disputes such
as litigation and arbitration shall be borne
by the Enterprise.
Commitment made during asset
restructuring: 1. The Enterprise legally
owns the corresponding shares of the
target company, and its capital
contribution to the target assets will be
paid in full before January 31, 2023, and
there will be no false capital contribution
or withdrawal of capital contribution, and
the Enterprise has complete ownership of
the target assets, with no other
circumstances that may affect the legal
existence of the target company; 2. The
Enterprise is the ultimate and true owner
of the underlying assets, and the
ownership of the underlying assets is
clear with no dispute, and there are no
circumstances of holding the underlying
assets by means of trust, entrusting others
or accepting others' entrustment; The
underlying assets are not in custody, with
no pledge, mortgage, lien and other
security rights or other third-party rights,
Explanati or other terms or agreements restricting
Commitmen Lishui on on the transfer signed, and no dispute or
Sustained Under
t made upon Huahui, Ownershi potential dispute. The underlying assets December
and Fulfillmen
the assets Xiamen p of the have not been sealed up or frozen by 30,2022 effective t
replacement Zhifeng Underlyin administrative or judicial organs, and
g Assets there are no other restrictions or
prohibitions on transfer. The Enterprise
guarantees that the above-mentioned state
will continue until the transfer of the
underlying assets to the name of the listed
company or until the date of termination
of this transaction (whichever is earlier);
3. The Enterprise promises to change the
ownership of the underlying assets in a
timely manner according to the agreement
after the relevant agreement of this
transaction comes into effect, and all the
responsibilities arising from disputes
caused by the Enterprise in the process of
ownership change shall be borne by the
Enterprise; 4. The ownership of the
above-mentioned underlying assets to be
transferred by the Enterprise has none of
unresolved or foreseeable disputes such
as litigation and arbitration, and the
responsibilities arising from disputes such
as litigation and arbitration shall be borne
by the Enterprise.
Hengmei Statement Commitment made during asset Sustained Under
Commitmen December
Photoelectri and restructuring: 1. The relevant information and Fulfillmen
t made upon 30,2022 effective t
c Commitm provided by the Company during this
82
2022 Annual Report
the assets ent on the transaction is authentic, accurate and
replacement Authentici complete, and it is guaranteed that there
ty, are no false records, misleading
Accuracy statements or major omissions, and the
and Company will bear individual and joint
Complete legal responsibilities for the authenticity,
ness of the accuracy and completeness of the
Informatio information provided. If there are false
n records, misleading statements or major
Provided omissions in the information provided,
which cause losses to the listed company
or investors, the Enterprise will be liable
for compensation according to law; 2.
The Company will submit relevant
information, documents and materials
(including but not limited to original
written materials, electronic materials,
duplicate materials and oral testimony)
required for this transaction to the listed
company and relevant intermediaries in a
timely manner, and at the same time it
promises that the information and
documents of the paper and electronic
materials provided are authentic,
complete, accurate and reliable, the
relevant duplicate materials or
photocopies are consistent with the
original, all signatures and seals on the
documents are authentic and valid, and
the photocopies are consistent with the
original, and the signatories of these
documents have legally authorized and
effectively signed the documents, and that
there are no false records, misleading
statements or major omissions; 3. The
Company guarantees that it has fulfilled
its statutory disclosure and reporting
obligations on this transaction, and there
are no contracts, agreements,
arrangements or other matters that should
be disclosed but not disclosed. The
Company is aware of the possible legal
consequences of the above commitments,
and will bear corresponding legal
responsibilities for acts that violate the
above commitments.
Shenzhen Investment Holdings Co., Ltd.
signed a “Letter of Commitment and
Commitm Statement on Horizontal Competition
ents on Avoidance” when the company issued
horizontal non-public stocks in 2009. Pursuant to the
Commitmen Shenzhen competitio Letter of Commitment and Statement,
Sustained Under
ts made Investment n, related Shenzhen Investment Holdings Co., Ltd. October 9,
and Fulfillmen
upon Holdings transactio and its wholly owned subsidiary, 2009
effective t
issuance Co., Ltd. n and subsidiaries under control or any other
capital companies that have actual control of it
occupatio shall not be involved in the business the
n same as or similar to those Shenzhen
Textile currently or will run in the future,
or any businesses or activities that may
83
2022 Annual Report
constitute direct or indirect competition
with Shenzhen Textile; if the operations
of Shenzhen Investment Holdings Co.,
Ltd. and its wholly owned subsidiaries,
subsidiaries under control or other
companies that have actual control of it
compete with Shenzhen Textile in the
same industry or contradict the interest of
the issuer in the future, Shenzhen
Investment Holdings Co., Ltd. shall urge
such companies to sell the equity, assets
or business to Shenzhen Textile or a third
party; when the horizontal competition
may occur due to the business expansion
concurrently necessary for Shenzhen
Investment Holdings Co., Ltd. and its
wholly owned subsidiaries, subsidiaries
under control or other companies that
have actual control of it and Shenzhen
Textile, Shenzhen Textile shall have
priority.
The commitments during the period non-
public issuance in 2012: 1. Shenzhen
Investment Holdings, as the controlling
shareholder of Shenzhen Textile,
currently hasn't the production and
business activities of inter-industry
competition with Shenzhen Textile or its
share-holding subsidiary. 2. Shenzhen
Investment Holdings and its share-
holding subsidiaries or other enterprises
owned the actual control rights can't be
directly and indirectly on behalf of any
person, company or unit to engage in the
same or similar business in any districts
Commitm in the future by the form of share-holding,
ents on equity participation, joint venture,
horizontal cooperation, partnership, contract, lease,
Commitmen Shenzhen competitio etc., and ensure not to use the controlling
Sustained Under
ts made Investment n, related shareholder's status to damage the July 14,
and Fulfillmen
upon Holdings transactio legitimate rights and interests of 2012
effective t
issuance Co., Ltd. n and Shenzhen Textile and other shareholders,
capital or to gain the additional benefits. 3. If
occupatio there will be the situation of inter-
n industry competition with Shenzhen
Textile for Shenzhen Investment
Holdings and its share-holding
subsidiaries or other enterprises owned
the actual control rights in the future,
Shenzhen Investment Holdings will
promote the related enterprises to avoid
the inter-industry competition through the
transfer of equity, assets, business and
other ways. 4. Above commitments will
be continuously effective and irrevocable
during Shenzhen Investment Holdings as
the controlling shareholder of Shenzhen
Textile or indirectly controlling Shenzhen
Textile.
Executed
timely or Yes
not?
If the
commitment
s failed to Not applicable
complete
the
84
2022 Annual Report
execution
when
expired,
should
specifically
explain the
reasons of
unfulfillmen
t and the net
stage of the
working
plan
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in
the forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
□ Applicable √ Not applicable
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
None
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
None
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
For details of the changes in the Company's accounting policies and accounting estimates and the correction
of accounting errors in the previous period, see "(IV) Changes in important accounting policies and
accounting estimates and the correction of accounting errors in the previous period" in "Section X Financial
Report" of this report.
VII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□ Applicable √Not applicable
None..
85
2022 Annual Report
VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Deloitte Touche Tohmatsu CPA Ltd.(special general
Name of the domestic CPAs
partnership)
Remuneration for domestic accounting firm (Ten thousands yuan) 190
Successive years of the domestic CPAs offering auditing services 0
Name of CPA Xu Xiangzhao, Yao Ming
Continuous years of audit services of certified public accountants of
0
domestic public accounting firms
Has the CPAs been changed in the current period
√Yes □ No
Whether to hire an accounting firm during the audit
□Yes √ No
Whether the change of accounting firm has fulfilled the examination and approval procedures
√Yes □ No
Detailed Explanation of the Change of Employment and Change of Accounting Firm
The audit service contract between the company and Grant Thornton Certified Public Accountants (Special
General Partnership) (hereinafter referred to as "Grant Thornton") has expired. Considering the future business
development of the company and the needs of overall audit, the company intends to hire Deloitte Touche
Tohmatsu CPA Ltd (Special General Partnership) (hereinafter referred to as "Deloitte") as the audit institution
for the company's annual financial statements and internal control in 2022. The Company has communicated
with Grant Thornton and Deloitte in advance on related matters, and all parties have clearly known that there is
no objection to this matter.
The company held the Sixteenth meeting of the Eighth Board of Directors on October 11, 2022, and the Second
Extraordinary General Meeting of Shareholders in 2022 on October 28, 2022, and deliberated and passed the
Proposal on Hiring Audit Institutions in 2022, agreeing to hire Deloitte as the audit service institution for the
company's financial statements and internal control in 2022, with a total annual audit fee of RMB 1.9 million
(including tax). The related financial statement audit fee in 2022 is RMB 1,550,000 (including tax), and the
internal control audit fee in 2022 is RMB 350,000 (including tax).
IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
None
XI. Matters of Important Lawsuit and Arbitration
√ Applicable □ Not applicable
Basic Amount Whether to Litigation(arbitration)prog Litigation( Implementat Disclosu
situation of involved form ress arbitration ion of re date
Disclosu
86
2022 Annual Report
litigation(arb (Ten estimated )trial litigation(ar re index
itration) thousand liabilities results and bitration)jud
yuan) impact gments
The case was heard in http://ww
Jinhang Fund
Pingshan District People's w.cninfo.c
v. SAPO
Court, Shenzhen City, om.cn）
Photoelectric Unfinishe Not June
0 No Guangdong Province on （Announ
for d trial executed 24,2022
July 15, 2022, and no cement
Dissolution
judgment has yet been No.:2022-
Dispute
made. 20
Dispute over The case was heard in http://ww
the Pingshan District People's w.cninfo.c
confirmation Court, Shenzhen City, om.cn）
Unfinishe Not August
of the 0 No Guangdong Province on （Announ
d trial executed 18,2023
validity of September 22, 2022, and cement
company no judgment has yet been No.:2022-
resolutions made. 25
The case was heard in http://ww
Pingshan District People's w.cninfo.c
Dispute over Court, Shenzhen City, om.cn）
Unfinishe Not August
shareholders' 0 No Guangdong Province on （Announ
d trial executed 18,2023
right to know September 22, 2022, and cement
no judgment has yet been No.:2022-
made. 25
The case was heard in
Shenzhen Court of
International Arbitration
on February 9, 2022, and
the second trial was held
on May 12, 2022 through
Arbitration online video. Combined
of contract with the actual situation of
dispute this case, the arbitration
between tribunal extended the trial Finished Under
1,217.87 No /
SAPO period of this case from trial execution
Photoelectric June 13, 2022 to
and Korea November 11. On
Nexteye November 9, 2022, the
arbitration tribunal made
an award [(2021)
SGZSWC No.3900],
which supported the
partial request of SAPO
Photoelectric
The case was heard in the
The
second instance on April
Company v.
27, 2022. The Shenzhen
Shenzhen
Intermediate People's
Administrati
Court made the judgment
on for
on June 28, 2022: 1.
Market
Revoke the administrative Unfinishe Not
Regulation 0 No /
judgment [(2021) Y0308 d trial executed
for
XC No.1883] of the
Revocation
People's Court of Yantian
of
District, Shenzhen City,
Cancellation
Guangdong Province; II.
of Shenzhen
Remand to Yantian
Xieli
District People's Court,
87
2022 Annual Report
Shenzhen City,
Guangdong Province for
retrial. On July 22, 2022,
the company received a
summons from Yantian
District People's Court in
Shenzhen, Guangdong
Province. The court heard
the case on September 29,
2022, and made a first-
instance judgment on
December 31, 2022, which
ruled that the Company
won the case and
cancelled the
administrative act of
cancellation of registration
in 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. Therefore, the
judgment of the first
instance did not take
effect. At present, the
attorney has been
informed to prepare for
the second trial.
The case was heard in the
first instance on February
24, 2022. Shenzhen Luohu
District People's Court
made a judgment on April
20, 2022: 1. Confirm that
the House Sales
Agreement signed by the
Zheng plaintiff Zheng Wenhui
Wenhui v. and the defendant Jintian
Jintian Industrial (Group) Co.,
Industrial Ltd. on May 28, 2021 is
(Group) Co., legal and valid; II. Finished
0 No Executed /
Ltd. and the Defendants Jintian trial
Company for Industrial (Group) Co.,
House Sales Ltd. and Shenzhen Textile
Contract (Group) Co., Ltd. shall
Dispute assist the plaintiff Zheng
Wenhui in handling the
transfer formalities for
Room 1-802 of Textile
Industry Company,
Fenghuang Road, Luohu
District, Shenzhen (Real
Estate Certificate No.:
SFD Zi No. 0042588).
88
2022 Annual Report
The judgment has come
into effect.
Manager of
Shenzhen
Shenbao
Textile
Industry and The case was heard in the
Trade Co., first instance on May 27,
Ltd. v. The 2022 and June 30, 2022.
Company, The Company won the
Unfinishe Not
Shenzhen 256.75 No case in the first instance,
d trial executed
Yuanxingcha and the plaintiff has filed
ng Industrial an appeal, which is still
Co., Ltd. and pending in the court of
Su Xingbin second instance.
for
Liquidation
Liability
Dispute
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
None
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
√ Applicable □ Not applicable
No such cases in the Reporting Period.
XIV. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
None
3. Related-party transitions with joint investments
□Applicable √ Not applicable
None
4. Credits and liabilities with related parties
□Applicable √ Not applicable
None
89
2022 Annual Report
5. Transactions with related finance company, especially one that is controlled by the Company
□Applicable √ Not applicable
None
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
√ Applicable □ Not applicable
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 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.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing Description of the website for
Description of provisional announcement provisional disclosing provisional
announcement announcements
Announcement of Resolutions of the 19th Meeting of the Eighth
December 31,2022 （http://www.cninfo.com.cn）
Board of Directors
Proposal on the "Plan for Shenzhen Textile (Holdings) Co., Ltd. to
Issue Shares, Pay Cash to Purchase Assets and Raise Matching
December 31,2022 （http://www.cninfo.com.cn）
Funds and Related Party Transactions" and Its Summary and other
proposals related to this transaction
Progress announcement the Proposal on "Plan for Shenzhen Textile
(Holdings) Co., Ltd. to Issue Shares, Pay Cash to Purchase Assets
January 30,2023 （http://www.cninfo.com.cn）
and Raise Matching Funds and Related Party Transactions" and Its
Summary and other proposals related to this transaction
Progress announcement the Proposal on "Plan for Shenzhen Textile
(Holdings) Co., Ltd. to Issue Shares, Pay Cash to Purchase Assets
February 28,2023 （http://www.cninfo.com.cn）
and Raise Matching Funds and Related Party Transactions" and Its
Summary and other proposals related to this transaction
XV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
90
2022 Annual Report
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Guarante
disclosur Date of
e
e happenin Counter- Complet
Name of Amount Actual Guarant for
date/No. g guarante Guarante e
the of mount of Guarante y（If associate
of (Date of e（If impleme
Compan Guarante guarante e type e term d
the signing any） ntation
y e e any） parties
guarante agreeme or not
(Yes or
ed nt)
no)
amount
Guarantee of the company for its subsidiaries
Relevant
Guarante
disclosur Date of
e
e happenin Counter- Complet
Name of Amount Actual Guarant for
date/No. g guarante e
the of mount of Guarante Guarante associate
of (Date of y（If impleme
Compan Guarante guarante e type e（If e term d
the signing any） ntation
y e e any） parties
guarante agreeme or not
(Yes or
ed nt)
no)
amount
Two
Guarante years
Septemb eing of from the
SAPO
March 42,228.5 date of
Photoele 48,000 er joint No No
18,2020 3 expiratio
ctric 8,2020 liabilitie n of the
s principal
debt
Total amount of Total actually
approved external amount of external
0 1,315.79
guarantee in the guarantee in the
report period(B1) report period(B2)
Total amount of Total actually
approved external amount of external
guarantee at the end 48,000 guarantee at the end 42,228.53
of the report of the report
period(B3) period(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Guarante
disclosur Date of
e
e happenin Counter- Complet
Name of Amount Actual Guarant for
date/No. g guarante e
the of mount of Guarante Guarante associate
of (Date of y（If impleme
Compan Guarante guarante e type e（If e term d
the signing any） ntation
y e e any） parties
guarante agreeme or not
(Yes or
ed nt)
no)
amount
The Company’s total guarantee(i.e.total of the first three main items)
Total guarantee
quota approved in Total amount of
the reporting period 0 1,315.79
（A1+B1+C1） guarantee actually
91
2022 Annual Report
incurred in the
reporting period
（A2+B2+C2）
Total guarantee
Total balance of the
quota already
actual guarantee at
approved at the
48,000 the end of the 42,228.53
end of the
reporting period
reporting period
（A4+B4+C4）
（A3+B3+C3）
The proportion of the total amount of
actually guarantee in the net assets of the 14.82%
Company (that is A4+B4+C4）%
Including：
Amount of guarantees provided for
shareholders, the actual controller and their 0
related parties (D)
Amount of debt guarantees provided directly
or indirectly for entities with a liability-to- 0
asset ratio over 70% (E)
Proportion of total amount of guarantee in
0
net assets of the company exceed 50%（F）
Total amount of the three kinds of guarantees
0
above (D+E+F)
Description of the guarantee with complex method
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
√ Applicable □Not applicable
Overview of entrusted wealth-management during the reporting period
In RMB 10,000
Source of funds The Occurred
for entrusted Amount of Un-recovered of
Specific type Undue balance Amount overdue
financial Entrusted Wealth- overdue amount
management management
Bank financial
Self fund 80,000,000 0 0 0
products
Other Self fund 719,649,255.81 269,605,448.44 0 0
Total 799,649,255.81 269,605,448.44 0 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity
or high risk with no promise of principal
√ Applicable □Not applicable
In RMB10,000
Nam Typ Prod Am Capi Start Expi Fun Met Refe Exp Actu The Am Whe Whe Sum
e of e of uct ount tal Date ry ds hod renc ecte al actu ount ther ther mar
Trus Trus Typ Sour Date Allo of e d profi al of pass ther y of
tee tee e ce catio Rew Ann Inco t reco prov ed e is even
Org Org n ard ualiz me and very ision the any ts
aniz aniz Dete ed (if loss of for statu entr and
92
2022 Annual Report
atio atio rmin Rate any) duri profi imp tory uste relat
n (or n(or atio of ng t airm proc d ed
Trus Trus n Retu the and ent edur fina sear
tee tee) rn repo loss (if e ncial ch
Nam rting duri any) plan inde
e) peri ng in x (if
od the the any)
repo futur
rting e
peri
od
Red
Sout
emp
hern
Asse tion
Dec
ts Mon on T Not
300, emb Not
Man Fun etar Self Othe day, 2.35 appl
000, er expi 0 Yes
age d y fund r arriv % icabl
men fund 000 16,2 r ed
al e
t 022
on
Co.,
Ltd. T+1
day
Ban
A
k of
lum
Chin
p-
a, Stru Dec
June sum Red Not
She ctur 300, Self emb 5,50 5,50
Ban 30, Othe pay 3.70 emp appl
nzhe al 000, fund er 4,38 4,38 0 Yes
k 202 r men % tion icabl
n depo 000 s 28,2 3.56 3.56
2 t due e
Luo sits 022
whe
hu
n
Bran
due
ch
600, 5,50 5,50
Total 000, -- -- -- -- -- -- 4,38 4,38 -- 0 -- -- --
000 3.56 3.56
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
None
4. Other significant contract
√ Applicable □Not applicable
Com Com Contr Contr Book Asses Appr Base Prici Trans Whet Conn Exec Date Discl
pany pany act act Valu sed aisal Date ng actio her A ectio ution of osure
Nam Nam Obje Signi e of Valu Agen of Princ n Relat n Cond Discl Index
e of e of ct ng the e of cy Asses iple Price ed Relat ition osure
the the Date Asset the Nam smen (RM Tract ion As
Party Other s Asset e (If t (if B10, ion Of
Maki Party Invol s Any) any) 000) The
93
2022 Annual Report
ng of the ved Invol End
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contr act the by The
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(RM act Perio
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000) B10,
(If 000)
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Note: 50% of the technology license fee agreed in the above contract shall be borne by Chengbo
Optoelectronics (and its affiliates) and Kunshan Qimei Material Technology Co., Ltd. (and its affiliates)
respectively, and shall be paid in cash according to the cooperation schedule with Jidong Electric.
XVI. Explanation on other significant events
√ Applicable □Not applicable
（1） Progress of this restructuring
According to the relevant regulations of the Shenzhen Stock Exchange, upon application by the company, the
trading of the company's shares has been suspended since the opening of the market on the morning of December
19, 2022. On December 30, 2022, the company held the 19th meeting of the 8th Board of Directors and the 13th
meeting of the 8th Board of Supervisors, Proposals related to this transaction, such as the Proposal on the "Plan
94
2022 Annual Report
for Issuing Shares, Paying Cash to Purchase Assets, Raising Supporting Funds, and Related Party Transactions of
Shenzhen Textile (Group) Co., Ltd." and its Abstract, were reviewed and passed. The company's stock market
was resumed on the morning of January 3, 2023. The company plans to purchase 100% of the equity of Hengmei
Optoelectronics Co., Ltd. by issuing shares and paying cash, and plans to raise matching funds through non-
public offering of shares to no more than 35 eligible specific targets (hereinafter referred to as "the transaction").
This transaction constitutes a related party transaction and is expected to constitute a significant asset
reorganization, but does not constitute a reorganization and listing, which will not lead to a change in the actual
controller of the company. This transaction is conducive to achieving a strong alliance within the polarizer
industry, rapidly increasing the production scale of polarizers, optimizing the layout of the industrial chain, and
deepening the depth of technical reserves, enabling the company to move to a new stage of high-quality
development. At the same time, this major asset restructuring is in line with the relevant national and Shenzhen
development strategic arrangements, and has a positive significance in ensuring the safety of the national new
display supply chain.
Since the disclosure of this transaction plan, the company and relevant parties have actively promoted various
work related to this transaction. The audit, evaluation, due diligence and other work involved in this exchange are
still ongoing. After the completion of relevant work, the company will convene a board of directors again to
review relevant matters of this transaction, and the company will perform relevant subsequent approval and
information disclosure procedures in accordance with relevant laws and regulations.
（2） Progress of the industrialization project of ultra large size polarizers for television (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.
（3） Investment in the construction of 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.
（4） Disposal of assets of the joint venture company Shenzhen Xieli
Shenzhen Xieli Automobile Enterprise Co., Ltd. (hereinafter referred to as "Shenzhen Xieli") is a Sino
foreign joint venture established by the company and Hong Kong Xieli Maintenance Company in 1981, with a
registered capital of 3.12 million yuan. 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 assets are real estate. In March
2020, Shenzhen Xieli Industrial and Commercial Co., Ltd. has been cancelled, but there are still three properties
under its name that need to be resolved through further negotiation between the shareholders of both parties.
On July 26, 2021, the company filed a lawsuit with the People's Court of Yantian District, Shenzhen City,
Guangdong Province to revoke the cancellation of Shenzhen Xieli Automobile Enterprise Co., Ltd. approved by
95
2022 Annual Report
the Shenzhen Market Supervision and Administration Bureau on March 9, 2020. On November 21, 2021, the
court issued a judgment revoking the cancellation of Shenzhen Xieli Automobile Enterprise Co., Ltd. approved
by the Shenzhen Market Supervision and Administration Bureau; On December 3 and December 6, 2021, Hong
Kong Xieli and Shenzhen Municipal Market Supervision and Administration Bureau respectively submitted
petitions of appeal to the Shenzhen Intermediate People's Court. On April 18, 2022, the company received a
notice of the second instance hearing from the Shenzhen Intermediate People's Court, and the case was heard in
the second instance on April 27, 2022. On June 28, 2022, the Shenzhen Intermediate People's Court ruled that the
first was to revoke the administrative judgment (2021) Yue 0308 Xing Chu No. 1883 of the People's Court of
Yantian District, Shenzhen City, Guangdong Province; The second is to send it back to the People's Court of
Yantian District, Shenzhen City, Guangdong Province for retrial. On July 22, 2022, a subpoena was received
from the People's Court of Yantian District, Shenzhen City, Guangdong Province. The court is scheduled to hold
a trial on August 25, 2022. The court made a first instance judgment on December 30, 2022, and we won the
lawsuit to revoke the administrative act of Shenzhen Xieli's deregistration. The third person in the original trial,
Hong Kong Xieli Maintenance Co., Ltd., was not satisfied and appealed to the Shenzhen Intermediate People's
Court on January 10, 2023. Later, due to the failure of Hong Kong Xieli Maintenance Co., Ltd. to pay the case
acceptance fee in advance on schedule, the Shenzhen Intermediate People's Court issued an administrative ruling
No. (2023) Yue 03 Xing Zhong 387, deciding that the case should be handled as if the appellant, Hong Kong
Xieli Maintenance Co., Ltd., had withdrawn the appeal.
（5） Matters on waiving the preemptive right and equity transfer of controlling subsidiaries
The shareholders' meeting of Shengbo Optoelectronics, the company's holding subsidiary, agreed that
Hangzhou Jinhang Equity Investment Fund Partnership (limited partnership) would transfer 40% of its
shareholding in Shengbo Optoelectronics to Hengmei Optoelectronics Co., Ltd. For details, see
http//www.cninfo.com.cn（ http://www.cninfo.com.cn ）Company Announcement No. 2023-01. On January 19,
2023, Shengbo Optoelectronics obtained the "Registration Notice" issued by the Shenzhen Municipal Market
Supervision and Administration Bureau, and the industrial and commercial change registration procedures for this
equity transfer have been completed. After this change, the company still holds 60% equity of Shengbo
Optoelectronics, while Hengmei Optoelectronics holds 40% equity of Shengbo Optoelectronics. This equity
transfer is conducive to synergizing the advantages of both parties in the polarizer industry, integrating high-
quality resources of both parties, further optimizing and strengthening the main polarizer industry, and better
enhancing the core competitiveness of listed companies.
XVII. Significant event of subsidiary of the Company
√ Applicable □Not applicable
（1） Progress of lawsuits involving the company and its holding subsidiaries
In July and August 2022, the company and its holding subsidiary, Shengbo Optoelectronics, received legal
documents such as the Notice of Responding to Lawsuits, Summons, and other legal documents served by the
People's Court of Pingshan District, Shenzhen City, Guangdong Province, with the case numbers of (2022) Yue
0310 Min Chu No. 3507, 4013, and 4336. They were informed that the court had accepted the case of
Hangzhou Jinhang Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as
"Jinhang Fund") v. Shengbo Optoelectronics ① dissolution dispute ② In the case of the Company's resolution
validity confirmation dispute and the case of the shareholder's right to know dispute, the Company was notified
to participate in the lawsuit as a party to the case, and Shengbo Optoelectronics responded as the defendant in
96
2022 Annual Report
the case. See http//www.cninfo.com.cn for details （ http://www.cninfo.com.cn ） Company Announcements
2022-20 and 2022-25.
The three cases mentioned above, namely, the dissolution dispute case, the company resolution validity
confirmation dispute case, and the shareholder's right to know dispute case, were heard in the Pingshan District
People's Court of Shenzhen City, Guangdong Province on July 15, 2022, September 22, 2022, and September
22, 2022, respectively, but no judgment has yet been rendered.
（2） Progress of subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's holding subsidiary Shengbo Optoelectronics signed the "Changxing
Junying Equity Investment Partnership (Limited Partnership) Partnership Agreement" with the fund manager
Huaiji Investment, general partner Jinxin Investment, and other limited partners, jointly initiating the
establishment of an industrial fund, focusing on projects related to the optical film industry chain related to the
company's main business, with a fund scale of 50 million yuan, As one of the limited partners of the Industrial
Fund, Shengbo Optoelectronics has subscribed a capital contribution of 28.5 million yuan. See
http//www.cninfo.com.cn for details（ http://www.cninfo.com.cn ）Company Announcement No. 2017-55.
On February 10, 2018, Changxing Junying completed its industrial and commercial registration and
completed the filing of private investment funds on February 8, 2018. See http//www.cninfo.com.cn for details
（ http://www.cninfo.com.cn ）Company Announcement No. 2018-05.
In order to optimize the strategic layout and supplement the working capital, Shengbo Optoelectronics and
Hangzhou Yuanzhen Investment Management Co., Ltd. (hereinafter referred to as "Yuanzhen Investment")
signed the Property Share Transfer Agreement for Changxing Junying Equity Investment Partnership (Limited
Partnership) on July 11, 2022, transferring the Changxing Fund share held by Shengbo Optoelectronics to
Yuanzhen Investment at a transaction consideration of 28.5 million yuan. After this property share transfer, the
company will withdraw from Changxing Fund and no longer hold the partnership share of Changxing Fund. See
http//www.cninfo.com.cn for details（ http://www.cninfo.com.cn ）Company Announcement No. 2022-21.
97
2022 Annual Report
VII. Change of share capital and shareholding of Principal
Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares
with
condition
72,000 0.01% 0 0 0 0 0 72,000 0.01%
al
subscripti
on
1.State -
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
2. State-
owned
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
shares
3.Other
domestic 72,000 0.01% 0 0 0 0 0 72,000 0.00%
shares
Incl：
Domestic
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
shares
Domestic
Natural
72,000 0.01% 0 0 0 0 0 72,000 0.01%
Person
shares
4.Foreign
0 0.00% 0 0 0 0 0 0 0.00%
share
Incl：
Foreign
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
share
Foreign
Natural 0 0.00% 0 0 0 0 0 0 0.00%
Person
shares
II.Shares
with
unconditi 506,449,8 506,449,8
99.99% 0 0 0 0 0 99.99%
onal 49 49
subscripti
on
98
2022 Annual Report
1.Commo
457,021,8 457,021,8
n shares 90.23% 0 0 0 0 0 90.23%
in RMB 49 49
2.Foreign
shares in 49,428,00 49,428,00
9.76% 0 0 0 0 0 9.76%
domestic 0 0
market
3. Foreign
shares in
0 0.00% 0 0 0 0 0 0 0.00%
foreign
market
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total
506,521,8 506,521,8
of capital 1.00% 0 0 0 0 0 100.00%
shares 49 49
Reasons for share changed
□ Applicable √ Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √Not applicable
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
99
2022 Annual Report
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
The total n
Total
Total umber of pr Total preference
shareholder
number of eferred shar shareholders with
common s at the end voting rights
eholders vo
shareholder of the recovered at end
ting rights r
38,145 month from 0 0
1
s at the end 34,975 of last month
estored at p
of the the date of before annual
eriod-end
reporting disclosing report disclosed(if
(if
period the annual any)(Note8)
any)(Note
report
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of Amount of Number of share
Proportion Changes in Amount of
Shareholde Nature of shares held un- pledged/frozen
of shares reporting restricted
rs shareholder at period - restricted State of
held（%） period shares held Amount
end shares held share
Shenzhen State-
Investment owned 234,069,43 234,069,43
46.21% 0 0
Holdings legal 6 6
Co., Ltd. person
Shenzhen
Shenchao State-
Technolog owned
3.18% 16,129,032 0 0 16,129,032
y Legal
Investment person
Co., Ltd.
Domestic
Sun
Nature 1.23% 6,208,853 200,200 0 6,208,853
Huiming
person
Domestic
Su
Nature 0.71% 3,580,000 756,934 0 3,580,000 Pledge 2,800,000
Weipeng
person
Domestic
Chen
Nature 0.60% 3,029,484 1,477,884 0 3,029,484
Xiaobao
person
Zhangzhou Domestic
Non-
Xiaotian
State-
Venture owned 0.58% 2,924,500 2,924,500 0 2,924,500
Investment Legal
Co., Ltd. person
Domestic
Li
Nature 0.44% 2,224,397 141,400 0 2,224,397
Zengmao
person
Domestic
Qi -
Nature 0.28% 1,433,800 0 1,433,800
Jianhong 785,000
person
Shenzhen Domestic
Non-
Pengkang
State- 0.28% 1,429,200 1,429,200 0 1,429,200
Pharmaceut owned
ical Co., Legal
1Due to 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).
100
2022 Annual Report
Ltd. person
Domestic
Peng Xun Nature 0.27% 1,359,700 1,359,700 0 1,359,700
person
Strategy investors or
general legal person
becomes top 10
shareholders due to rights None
issued (if applicable)
（See Notes 3）
Among the top 10 common shareholders, Shenzhen Investment Holdings Co., Ltd. and Shenzhen
Explanation on Shenchao Technology Investment Co., Ltd. do not constitute a concerted party relationship. In
shareholders participating addition, the company does not know whether there is an associated relationship among the top 10
in the margin trading ordinary shareholders, and between the top 10 ordinary shareholders and the top 10 shareholders, or
business whether they are persons taking concerted action defined in Regulations on Disclosure of
Information about Shareholding of Shareholders of Listed Company.
Above shareholders
entrusting or entrusted
None
with voting rights, or
waiving voting rights
Top 10 shareholders
including the special
None
account for repurchase (if
any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of Share type
unrestricted shares
Name of the shareholder
held at the end of the Share type Quantity
reporting period
Shenzhen Investment Holdings Co., Ltd. 234,069,436 Common shares in RMB 234,069,436
Shenzhen Shenchao Technology Investment Co.,
16,129,032 Common shares in RMB 16,129,032
Ltd.
Sun Huiming 6,208,853 Foreign shares in domestic market 6,208,853
Su Weipeng 3,580,000 Common shares in RMB 3,580,000
Chen Xiaobao 3,029,484 Common shares in RMB 3,029,484
Zhangzhou Xiaotian Venture Investment Co.,
2,924,500 Common shares in RMB 2,924,500
Ltd.
Li Zengmao 2,224,397 Common shares in RMB 2,224,397
Qi Jianhong 1,433,800 Common shares in RMB 1,433,800
Shenzhen Pengkang Pharmaceutical Co., Ltd. 1,429,200 Common shares in RMB 1,429,200
Peng Xun 1,359,700 Common shares in RMB 1,359,700
Among the top 10 common shareholders, Shenzhen Investment Holdings Co.,
Ltd. and Shenzhen Shenchao Technology Investment Co., Ltd. do not
Explanation on associated relationship or
constitute a concerted party relationship. In addition, the company does not
consistent action among the top 10 shareholders
know whether there is an associated relationship among the top 10 ordinary
of non-restricted negotiable shares and that
shareholders, and between the top 10 ordinary shareholders and the top 10
between the top 10 shareholders of non-restricted
shareholders, or whether they are persons taking concerted action defined in
negotiable shares and top 10 shareholders
Regulations on Disclosure of Information about Shareholding of Shareholders
of Listed Company.
Explanation on shareholders participating in the
None
margin trading business(if any )(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
101
2022 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
Name of the Legal
Date of Organization
Controlling representative/ Principal business activities
incorporation code
shareholder Leader
Investment and acquisition of financial and
similar financial stock rights such as bank,
security, insurance, fund and guarantee; Engage in
real estate development and management business
within the limit of legally-acquired land use right;
Carry out investment and service in the field of
strategic emerging industry; Carry out investment,
operation and management of state-owned stocks
Shenzhen Investment October
He Jianfeng 76756642-1 of wholly-owned, holding and joint-stock
Holdings Co., Ltd. 13,2004
company by reorganization & integration, capital
operation and asset disposal; Other businesses
undertaken by authorization of municipal
SASAC(State Asset Supervision and
Administration Commission) (If the above
business scope needs to be approved according to
national regulations, the business can only be
operated after the approvalis obtained)
Shen PropertyA（000011），Quantity of shares 301.41 million，Shareholding ratio：50.57%；
SPGA （000029），Quantity of shares 564.35 million，Shareholding ratio：55.78%；Shen Universe
A（000023），Quantity of shares 8.21 million，Shareholding ratio：5.91%；Pingan （601318），
Quantity of shares962.72 million，Shareholding ratio：5.27%；Guosen Securities（002736），
Quantity of shares 3,223.11 million，Shareholding ratio：33.53%；Guotai Junan（601211），
Quantity of A shares 609.43 million，Quantity of H shares 103.37 million，Total shareholding ratio：
8.00%；Telling Holding（000829），Quantity of shares 195.03 million，Shareholding ratio：
19.03%；Shenzhen International（00152），Quantity of shares 1,059.08 million，Shareholding
ratio：44.35%；Beauty Star（002243），Quantity of shares 604.82 million，Shareholding
ratio:49.96%；Hopewell Highway（00737），Quantity of shares 2,213.45 million，Shareholding
ratio:71.83%；Infinova（002528），Quantity of shares 315.83 million, Shareholding ratio:26.35%；
Equity of other
SWPD（301038），Quantity of shares 49.5 million, Shareholding ratio:37.5%；Eternal Asia
domestic/foreign listed
（002183），Quantity of shares 601.67 million, Shareholding ratio:23.17%；Energy（000027)，
company with share
Quantity of shares 6.77 million，Shareholding ratio:0.14%；Bank Communication（601328），
controlling and share
Quantity of shares 9.52 million , Shareholding ratio:0.01%；Tehan Ecological（300197），Quantity
participation by
of shares 113.98 million, Shareholding ratio:4.04%；Shenzhen Expressway（600548），Quantity of
controlling shareholder
shares 10,662.23 million, Shareholding ratio:74.39%；Huachangda（300278），Quantity of shares
in reporting period
398.38 million, Shareholding ratio:28.03%；Soling（002766），Quantity of shares 84.38 million,
Shareholding ratio:9.96%；Huakong SEG（000068），Quantity of shares 142.79 million,
Shareholding ratio:14.18%；Shen SEG（000058），Quantity of shares 696.16 million, Shareholding
ratio:56.54%；Huajin Capital（000532），Quantity of shares 31.57 million, Shareholding
ratio:9.16%；Leaguer（688589），Quantity of shares 13 million, Shareholding ratio:12.97%；SDGS
（300917），Quantity of shares 80.74 million, Shareholding ratio:47.78%；SDG（000070），
Quantity of shares 315.16 million, Shareholding ratio:37.32%；Tellus A（000025），Quantity of
shares 208.74 million, Shareholding ratio:48.42%；Microgate（300319），Quantity of shares 212.8
million, Shareholding ratio:24.74%；Shen Huafa（000020），Quantity of shares 16.57 million,
Shareholding ratio:5.85%；China VANKE（02202），Quantity of shares 77.27 million,Shareholding
ratio:0.66%.
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
102
2022 Annual Report
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Name of the actual Legal representative Principal business
Date of incorporation Organization code
controller /Leader activities
Performing the
responsibilities of
State-owned Assets
investors on behalf of
Regulatory
the state and
Commission of Wang Yongjian July 30,2004 K3172806-7
supervising and
Shenzhen Municipal
managing state-owned
People's Government
assets according to
authorization and law.
Equity of other
domestic/foreign listed
company with share
It directly held 49.07% equity of Shenzhen Gas (601139); It directly held 36.99% equity of
controlling and share
Shenzhen Zhenye (000006); It directly held 48.05% equity of Shenzhen Energy (000027).
participation by
controlling shareholder
in reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
□Applicable √Not applicable
6.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
103
2022 Annual Report
and Other Commitment Subjects
□Applicable √Not applicable
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
104
2022 Annual Report
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
105
2022 Annual Report
IX. Corporate Bond
□ Applicable √ Not applicable
106
2022 Annual Report
X. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified opinion
Date of signature of audit report April 1,2023
Name of audit firm Deloitte Touche Tohmatsu CPA Ltd.(special general partnership)
The audit report number DSB(Shen)ZD (23) No.: P03516
Names of the Certified Public Accountants Xu Xiangzhao, Yao Ming
Auditors’ Report
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：
I. Opinion
We have audited the financial statements of Shenzhen Textile (Holdings) Co., Ltd . (hereinafter referred to as "the
Company"), which comprise the balance sheet as at December 31, 2022, and the income statement, the statement
of cash flows and the statement of changes in owners' equity for the year then ended and notes to the financial
statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2022 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
1. Recognition of polarizer sales revenue
As mentioned in Note (VII) 39 to the financial statement, in 2022the operating income reported in the
consolidated financial statement of Shenzhen Textile Group was RMB 2,837,988,264.36, of which the sales
revenue of polarizers was RMB 2,693,787,636.62, accounting for 94.92% of the total operating income. The
sales revenue of Shenzhen Textile Group's polarizer is recognized when the customer obtains control of the
relevant goods. Due to the importance of polarizer sales revenue to the consolidated financial statement as a
whole, and the revenue is one of the key performance indicators of Shenzhen Textile Group, there is an
inherent risk that management will manipulate revenue recognition in order to achieve specific objectives or
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2022 Annual Report
expectations, therefore, we have identified the recognition of polarizer sales revenue as a key audit matter for
the audit of the consolidated financial statement.
In response to the above key audit matter, the audit procedures we implement mainly include:
Understand and evaluate the internal control of the revenue-related business of Shenzhen Textile Group,
understand and evaluate the design and implementation of relevant internal control activities by questioning
relevant business personnel, observing business processes, obtaining and checking documents, etc., and conduct
the operation effectiveness test of internal control activities.
Examine sales contracts with key customers, identify contractual terms and conditions related to the transfer of
control of goods, and assess whether the accounting policies for revenue recognition comply with the
requirements of accounting standards for business enterprises
In response to the above key audit matter, the audit procedures we implement mainly include:
Perform revenue analysis procedures by production line, product type and customer, and analyze the rationality
of revenue changes based on market and other factors.
Evaluate whether revenue recognition meets the requirements of accounting standards for enterprises;
Samples are taken to perform detailed tests on sales revenue, check supporting documents such as invoices,
outbound delivery orders, and receipts related to revenue recognition, and verify the sales of major customers
by letter of confirmation and evaluate the authenticity of polarizer sales revenue recognition.
Select samples of sales transactions before and after the balance sheet date, check the supporting documents
such as invoices, outbound delivery orders, and receipts, and evaluate whether the revenue is recorded in the
appropriate accounting period.
2. Impairment of polarizer inventory
As mentioned in Note (VII) 8 to the financial statement, as of December 31, 2022, the inventory book
balance reported in the consolidated financial statement of Shenzhen Textile Group was RMB741,464,422.61,
of which the book balance of polarizer inventory was RMB721,282,838.15, accounting for 97.12% of the total
inventory, and the corresponding inventory decline reserve was RMB180,886,720.53. In accordance with the
Group's accounting policy, inventories are measured at the lower of cost or net realizable value at the end of the
year, and when the net realizable value of inventories is lower than cost, a provision is made for inventory price
declines. As the provision for inventory declines involves significant management estimates, we have identified
the impairment of polarizer inventories as a key audit matter in the audit of the consolidated financial statement.
In response to the above key audit matter, the audit procedures we implement mainly include:
Understand and evaluate the design and implementation of internal controls related to inventory
impairment;
Understand and evaluate the appropriateness of accounting policies related to inventory price declines
provision;
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2022 Annual Report
Implement inventory on-site monitoring procedures, check the check-count quantity ofinventory on a
sampling basis, and observe the status of inventory to evaluate the inventory quantity and condition at the
balance sheet date;
Evaluate the reasonableness of management's methodology for accruing provisions for inventory declines
and the important assumptions and parameters used to calculate net realizable value;
Evaluate whether there are signs of management bias by selecting samples of data used to determine the
net realizable value of inventories with comparing to the actual cost of completion and actual selling price of the
product that has actually been incurred in the mostrecent.
IV. Other information
The management of the Company is responsible for the other information. The other information comprises
information of the Company's annual report in 2022, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
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2022 Annual Report
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the
Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Deloitte Touche Tohmatsu CPA Ltd.(special general partnership) Chinese C.P.A.
（Project Partner)
Shanghai China
Chinese C.P.A.
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2022 Annual Report
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
Dec 31,2022
In RMB
Items Note December 31,2022 December 31,2021
Current asset：
Monetary fund (VII) 1 991,789,968.19 302,472,828.60
Transactional financial assets (VII) 2 319,605,448.44 617,191,678.56
Note receivable (VII) 3 74,619,100.26 149,942,880.28
Account receivable (VII) 4 636,583,469.93 479,998,708.57
Financing of receivables (VII) 5 54,413,796.91 21,474,101.07
Prepayments (VII) 6 18,391,444.67 15,406,619.53
Other account receivable (VII) 7 10,585,975.38 140,185,750.40
Inventories (VII) 8 558,447,648.77 743,401,857.74
Other current asset (VII) 9 69,535,531.24 29,503,352.42
Total of current assets 2,733,972,383.79 2,499,577,777.17
Non-current assets：
Long term share equity investment (VII) 10 134,481,835.74 133,022,325.77
Other equity instruments investment (VII) 11 167,678,283.27 186,033,829.72
Real estate investment (VII) 12 126,315,834.76 125,251,851.43
Fixed assets (VII) 13 2,240,221,656.36 2,396,658,988.81
Construction in progress (VII) 14 38,061,619.60 71,482,031.08
Use right assets (VII) 15 15,365,393.88 9,221,189.37
Intangible assets (VII) 16 44,192,571.95 48,635,160.00
Goodwill (VII) 17 - -
Long-germ expenses to be amortized (VII) 18 4,470,957.79 5,387,295.94
Deferred income tax asset (VII) 19 69,823,814.29 3,708,596.78
Other non-current asset (VII) 20 42,553,016.47 84,560,280.09
Total of non-current assets 2,883,164,984.11 3,063,961,548.99
Total of assets 5,617,137,367.90 5,563,539,326.16
Current liabilities
Short-term loans (VII) 21 7,000,000.000 37,575,113.83
Notes payable (VII) 22 - 16,682,324.12
Account payable (VII) 23 327,049,873.70 359,584,252.94
Advance receipts (VII) 24 1,393,344.99 1,805,311.57
Contract liabilities (VII) 25 4,274,109.40 68,955.21
Employees’ wage payable (VII) 26 61,166,444.90 59,719,860.24
Tax payable (VII) 27 8,897,312.51 9,200,627.09
Other account payable (VII) 28 197,345,455.37 201,317,421.35
Non-current liability due within 1 year (VII) 29 104,183,438.22 5,175,393.52
Other current liability (VII) 30 92,945,741.78 58,264,958.58
Total of current liability 804,255,720.87 749,394,218.45
Non-current liabilities：
Long-term loan (VII) 31 607,421,585.00 683,016,243.25
Lease liability (VII) 32 8,628,672.71 4,243,855.71
Deferred income (VII) 33 117,814,796.10 110,461,293.15
Deferred income tax liability (VII)19 47,974,267.80 61,642,660.91
Total non-current liabilities 781,839,321.61 859,364,053.02
Total of liability 1,586,095,042.48 1,608,758,271.47
Owners’ equity
Share capital (VII) 34 506,521,849.00 506,521,849.00
Capital reserves (VII) 35 1,961,599,824.63 1,961,599,824.63
Other comprehensive income (VII) 36 109,596,609.31 119,682,119.05
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2022 Annual Report
Special reserve (VII) 37 100,909,661.32 98,245,845.47
Retained profit (VII) 38 170,636,610.95 125,317,336.31
Total of owner’s equity belong to the parent company 2,849,264,555.21 2,811,366,974.46
Minority shareholders’ equity 1,181,777,770.21 1,143,414,080.23
Total of owners’ equity 4,031,042,325.42 3,954,781,054.69
Total of liabilities and owners’ equity 5,617,137,367.90 5,563,539,326.16
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 Note December 31,2022 December 31,2021
Current asset：
Monetary fund
Transactional financial assets 426,042,455.28 130,270,313.58
Account receivable (XVI) 1 319,605,448.44 586,540,735.16
Other account receivable (XVI) 2 15,643,024.11 7,935,911.24
Inventories 14,132,756.62 14,383,631.68
Total of current assets 26,237.85 39,131.60
Non-current assets： 775,449,922.30 739,169,723.26
Long term share equity investment (XVI) 3
Other equity instruments investment 2,092,431,333.83 2,089,070,531.86
Real estate investment 151,618,842.39 169,974,388.84
Fixed assets 101,190,712.85 98,174,132.57
Intangible assets 11,346,585.35 20,255,108.56
Deferred income tax asset 308,243.90 454,036.00
Other non-current asset - 3,672,545.57
Total of non-current assets 25,997,082.15 55,790,497.23
Total of assets 2,382,892,800.47 2,437,391,240.63
Current liabilities 3,158,342,722.77 3,176,560,963.89
Account payable
Advance receipts 411,743.57 411,743.57
Employees’ wage payable 691,160.58 639,024.58
Tax payable 18,510,589.33 16,712,946.96
Other account payable 7,121,466.14 1,943,470.48
Total of current liability 113,736,371.24 116,648,650.39
Non-current liabilities： 140,471,330.86 136,355,835.98
Deferred income
Deferred income tax liability 300,000.00 400,000.00
Total non-current liabilities 44,363,868.30 58,002,800.69
Total of liability 44,663,868.30 58,402,800.69
Owners’ equity 185,135,199.16 194,758,636.67
Share capital
Capital reserves 506,521,849.00 506,521,849.00
Less：Shares in stock 1,577,392,975.96 1,577,392,975.96
Other comprehensive income 98,855,668.75 108,762,538.39
Special reserve 100,909,661.32 98,245,845.47
Retained profit 689,527,368.58 690,879,118.40
Total of owners’ equity 2,973,207,523.61 2,981,802,327.22
Total of liabilities and owners’ equity 3,158,342,722.77 3,176,560,963.89
3.Consolidated Income statement
In RMB
Note Year 2022 Year 2021
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2022 Annual Report
1. Operation revenue (VII) 39 2,837,988,264.36 2,330,061,681.00
Less：Business cost (VII) 39 2,374,005,896.43 1,906,993,663.75
Business tax and surcharge (VII) 40 7,907,126.91 10,523,548.09
Sales expense (VII) 41 35,962,529.35 37,973,336.39
Administrative expense (VII) 42 128,388,940.29 122,088,830.15
R & D costs (VII) 43 80,520,155.54 103,508,764.53
Financial expenses (VII) 44 12,943,606.57 (130,344.09)
Including：Interest expense 31,131,112.38 14,306,275.13
Interest income 8,327,248.75 1,655,853.59
Add: Other income (VII) 45 26,350,210.89 19,643,379.33
Investment gain (VII) 46 19,383,351.87 22,663,013.06
Incl: investment gains from affiliates 1,307,639.15 33,984.66
Financial assets measured at amortized cost cease to be recognized as
- -
income
Changing income of fair value (VII) 47 - 2,150,943.40
Credit impairment loss (VII) 48 (4,618,553.09) (4,981,560.53)
Impairment loss of assets (VII) 49 (202,573,465.84) (130,396,451.18)
Assets disposal income (VII) 50 31,264.60 (597,458.77)
II. Operational profit 36,832,817.70 57,585,747.49
Add ：Non-operational income (VII) 51 14,993,082.57 21,285,786.64
Less：Income tax expenses (VII) 52 7,477,057.47 1,686,263.35
III. Total profit 44,348,842.80 77,185,270.78
Less：Income tax expenses (VII) 53 (67,443,123.52) 11,118,796.96
IV. Net profit 111,791,966.32 66,066,473.82
(I) Classification by business continuity
1.Net continuing operating profit 111,791,966.32 66,066,473.82
2.Termination of operating net profit - -
(II) Classification by ownership
Including：Net profit attributable to the owners of parent
73,309,182.94 55,733,468.82
company
Minority shareholders’ equity 38,482,783.38 10,333,005.00
V. Net after-tax of other comprehensive income (VII) 36 (10,204,603.14) 4,234,512.42
Net of profit of other comprehensive income attributable to ow
(10,085,509.74) 4,234,512.42
ners of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting (10,058,739.46)
period 4,433,576.15
1.Re- -
measurement of defined benefit plans of changes in net deb -
t or net assets
2.Other comprehensive income under the equity method in -
-
vestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity (10,058,739.46)
4,433,576.15
instruments
4. Changes in the fair value of the company’s credit risks - -
（II）
Other comprehensive income that will be reclassified into prof (26,770.28) (199,063.73)
it or loss.
-
1.Other comprehensive income under the equity method investee c -
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt (178,640.10)
-
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 151,869.82 (199,063.73)
7.Other - -
Net of profit of other comprehensive income attributable to Mi (119,093.40) -
nority shareholders’ equity
VI. Total comprehensive income 101,587,363.18 70,300,986.24
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2022 Annual Report
Total comprehensive income attributable to the owner of the
63,223,673.20 59,967,981.24
parent company
Total comprehensive income attributable minority shareholders 38,363,689.98 10,333,005.00
VII. Earnings per share
Basic earnings per share 0.14 0.11
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
Note Year 2022 Year 2021
1. Operation revenue (XVI) 4 56,046,883.88 78,159,686.19
Less：Business cost (XVI) 4 9,544,956.96 11,547,944.88
Business tax and surcharge 2,296,709.15 2,968,080.87
Sales expense 106,542.65 49,682.40
Administrative expense 46,419,746.13 45,821,418.49
Financial expenses (5,381,252.49) 283,692.12
Including：Interest expenses 6,601.33 645,507.87
Interest income 5,369,095.59 359,182.13
Add：Other income 269,698.97 602,709.52
Investment gain (XVI) 5 18,656,000.37 20,409,098.48
Including: investment gains from affiliates 1,307,639.15 33,984.66
Financial assets measured at amortized cost cease to be recognized - -
as income
Credit impairment loss 940,005.04 (710,513.74)
Impairment loss of assets - (32,769.22)
Assets disposal income - (386,933.41)
II. Operational profit 22,925,885.86 37,370,459.06
Add ：Non-operational income 6,004,050.33 283,354.84
Less：Non -operational expenses 100,500.00 -
III. Total profit 28,829,436.19 37,653,813.90
Less：Income tax expenses 2,191,277.71 5,900,206.38
IV. Net profit 26,638,158.48 31,753,607.52
1.Net continuing operating profit 26,638,158.48 31,753,607.52
2.Termination of operating net profit - -
V. Net after-tax of other comprehensive income (9,906,869.64) 2,288,677.33
（I）Other comprehensive income items that will not be 2,487,741.06
(10,058,739.46)
reclassified into gains/losses in the subsequent accounting period
1.Re- - -
measurement of defined benefit plans of changes in net debt or net
assets
2.Other comprehensive income under the equity method investee c - -
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity (10,058,739.46)
2,487,741.06
instruments
4. Changes in the fair value of the company’s credit risks - -
5.Other - -
(II)Other comprehensive income that will be reclassified into profi 151,869.82 (199,063.73)
t or loss
- -
1.Other comprehensive income under the equity method investee c
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt - -
obligations
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2022 Annual Report
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 151,869.82 (199,063.73)
7.Other - -
VI. Total comprehensive income 16,731,288.84 34,042,284.85
5. Consolidated Cash flow statement
In RMB
Note Year 2022 Year 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 3,046,091,280.79 2,335,256,168.54
Tax returned 113,982,534.22 9,423,408.29
Other cash received from business operation 七、54(1) 218,296,299.96 88,625,329.53
Sub-total of cash inflow 3,378,370,114.97 2,433,304,906.36
Cash paid for purchasing of merchandise and services 2,453,492,479.82 1,860,349,920.78
Cash paid to staffs or paid for staffs 253,460,171.00 250,216,599.00
Taxes paid 59,230,421.14 101,786,653.96
Other cash paid for business activities 七、54(2) 121,948,492.41 225,388,712.97
Sub-total of cash outflow from business activities 2,888,131,564.37 2,437,741,886.71
Net cash generated from /used in operating activities 七、55(1) 490,238,550.60 (4,436,980.35)
II. Cash flow generated by investing
Cash received from investment retrieving 28,500,000.00 10,817,803.07
Cash received as investment gains 18,075,712.72 14,881,941.03
Net cash retrieved from disposal of fixed assets, intangible assets,
101,301.53 83,520.00
and other long-term assets
Net cash received from disposal of subsidiaries or other
- -
operational units
Other investment-related cash received 七、54(3) 1,316,000,000.00 1,128,309,484.61
Sub-total of cash inflow due to investment activities 1,362,677,014.25 1,154,092,748.71
Cash paid for construction of fixed assets, intangible assets
123,210,891.17 447,622,193.08
and other long-term assets
Cash paid as investment 1.00 -
Net cash received from subsidiaries and other operational
- -
units
Other cash paid for investment activities 七、54(4) 1,140,433,371.49 965,000,000.00
Sub-total of cash outflow due to investment activities 1,263,644,263.66 1,412,622,193.08
Net cash flow generated by investment 99,032,750.59 (258,529,444.37)
III.Cash flow generated by financing
Cash received as investment - -
Including: Cash received as investment from minor shareholders - -
Cash received as loans 73,230,492.79 339,219,000.00
Other financing –related cash received - -
Sub-total of cash inflow from financing activities 73,230,492.79 339,219,000.00
Cash to repay debts 26,642,157.50 -
Cash paid as dividend, profit, or interests 56,596,142.54 38,306,691.13
Including: Dividend and profit paid by subsidiaries to minor
- -
shareholders
Other cash paid for financing activities 七、54(5) 9,144,572.43 12,638,273.00
Sub-total of cash outflow due to financing activities 92,382,872.47 50,944,964.13
Net cash flow generated by financing (19,152,379.68) 288,274,035.87
IV. Influence of exchange rate alternation on cash and cash
1,947,479.23 (1,236,414.38)
equivalents
V.Net increase of cash and cash equivalents 572,066,400.74 24,071,196.77
Add: balance of cash and cash equivalents at the beginning of
七、55(2) 302,408,433.72 278,337,236.95
term
VI ..Balance of cash and cash equivalents at the end of term 七、55(2) 874,474,834.46 302,408,433.72
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2022 Annual Report
6. Cash Flow Statement of the Parent Company
In RMB
Note Year 2022 Year 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 49,647,323.90 66,467,384.64
Tax returned 600,618.94 -
Other cash received from business operation (VII)、54(1) 7,065,800.34 42,417,781.16
Sub-total of cash inflow 57,313,743.18 108,885,165.80
Cash paid for purchasing of merchandise and services 2,458,133.73 13,344,258.31
Cash paid to staffs or paid for staffs 33,850,730.29 34,360,990.56
Taxes paid 6,260,647.31 23,084,768.18
Other cash paid for business activities (VII)、54(2) 5,334,787.37 10,293,028.68
Sub-total of cash outflow from business activities 47,904,298.70 81,083,045.73
Net cash generated from /used in operating activities (VII)、55(1) 9,409,444.48 27,802,120.07
II. Cash flow generated by investing
Cash received from investment retrieving - 10,817,803.07
Cash received as investment gains 17,348,361.22 11,479,752.94
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 (VII)、54(3) 1,316,000,000.00 466,820,636.28
Sub-total of cash inflow due to investment activities 1,333,348,361.22 489,118,192.29
Cash paid for construction of fixed assets, intangible assets and
2,586,581.13 2,247,719.06
other long-term assets
Cash paid as investment 1.00 -
Net cash received from subsidiaries and other operational units - -
Other cash paid for investment activities (VII)、54(4) 1,134,754,229.41 475,000,000.00
Sub-total of cash outflow due to investment activities 1,137,340,811.54 477,247,719.06
Net cash flow generated by investment 196,007,549.68 11,870,473.23
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 25,332,693.78 15,176,281.23
Other cash paid for financing activities - 7,820,298.30
Sub-total of cash outflow due to financing activities 25,332,693.78 22,996,579.53
Net cash flow generated by financing (VII)、54(5) (25,332,693.78) (22,996,579.53)
IV. Influence of exchange rate alternation on cash and cash 1,886.83
-
equivalents
V.Net increase of cash and cash equivalents 180,086,187.21 16,676,013.77
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 310,322,528.19 130,236,340.98
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7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2022
Owner’s equity Attributable to the Parent Company
Minor
Items Other Total of owners’
shareholders’
Share Capital Capital reserves Comprehensive Surplus reserves Retained profit equity
equity
Income
I .Balance at the end of last year 506,521,849.00 1,961,599,824.63 119,682,119.05 98,245,845.47 125,317,336.31 1,143,414,080.23 3,954,781,054.69
- - - - - - -
Add: Change of accounting policy
Correcting of previous errors - - - - - - -
Merger of entities under common control - - - - - - -
Other - - - - - - -
II. Balance at the beginning of current year 506,521,849.00 1,961,599,824.63 119,682,119.05 98,245,845.47 125,317,336.31 1,143,414,080.23 3,954,781,054.69
III .Changed in the current year - - (10,085,509.74) 2,663,815.85 45,319,274.64 38,363,689.98 76,261,270.73
（1）Total comprehensive income - - (10,085,509.74) - 73,309,182.94 38,363,689.98 101,587,363.18
（ II ） Investment or decreasing of capital by - - - - - - -
owners
1．Ordinary Shares invested by shareholders - - - - - - -
2 ． Amount of shares paid and accounted as - - - - - - -
owners’ equity
3．Other - - - - - - -
（III）Profit allotment - - - 2,663,815.85 (27,989,908.30) - (25,326,092.45)
1.Providing of surplus reserves - - - 2,663,815.85 (2,663,815.85) - -
2．Allotment to the owners (or shareholders) - - - - (25,326,092.45) - (25,326,092.45)
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. Other comprehensive income carry-over - - - - - - -
retained earnings
5．Other - - - - - - -
(V). Special reserves - - - - - - -
1. Provided this year - - - - - - -
2．Used this term - - - - - - -
（VI）Other - - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,961,599,824.63 109,596,609.31 100,909,661.32 170,636,610.95 1,181,777,770.21 4,031,042,325.42
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2022 Annual Report
Amount in last year
In RMB
Year 2021
Owner’s equity Attributable to the Parent Company
Minor Total of
Items Other
Capital Less: Shares Surplus Retained shareholders’ owners’
Share Capital Comprehensiv
reserves in stock reserves profit equity equity
e Income
I .Balance at the end of last year 507,772,279.00 1,967,514,358.53 7,525,438.20 116,605,932.42 94,954,652.14 86,912,390.50 1,133,081,075.23 3,899,315,249.62
- - - - - - - -
Add: Change of accounting policy
Correcting of previous errors - - - - - - - -
Merger of entities under common control - - - - - - - -
Other - - - - - - - -
II. Balance at the beginning of current year 507,772,279.00 1,967,514,358.53 7,525,438.20 116,605,932.42 94,954,652.14 86,912,390.50 1,133,081,075.23 3,899,315,249.62
III .Changed in the current year (1,250,430.00) (5,914,533.90) (7,525,438.20) 3,076,186.63 3,291,193.33 38,404,945.81 10,333,005.00 55,465,805.07
（1）Total comprehensive income - - - 4,234,512.42 - 55,733,468.82 10,333,005.00 70,300,986.24
（II）Investment or decreasing of capital by owners (1,250,430.00) (5,914,533.90) (7,525,438.20) - - - - 360,474.30
1．Ordinary Shares invested by shareholders - - - - - - - -
2．Amount of shares paid and accounted as owners’ - - - - - - - -
equity
3．Other (1,250,430.00) (5,914,533.90) (7,525,438.20) - - - - 360,474.30
（III）Profit allotment - - - - 3,175,360.75 (18,371,016.22) - (15,195,655.47)
1.Providing of surplus reserves - - - - 3,175,360.75 (3,175,360.75) - -
2．Allotment to the owners (or shareholders) - - - - - (15,195,655.47) - (15,195,655.47)
3．Other - - - - - - - -
(IV) Internal transferring of owners’ equity - - - (1,158,325.79) 115,832.58 1,042,493.21 - -
1. Capitalizing of capital reserves (or to capital - - - - - - - -
shares)
2. Capitalizing of surplus reserves (or to capital - - - - - - - -
shares)
3．Making up losses by surplus reserves. - - - - - - - -
4. Other comprehensive income carry-over retained - - - - -
(1,158,325.79) 115,832.58 1,042,493.21
earnings
5．Other - - - - - - - -
(V). Special reserves - - - - - - - -
1. Provided this year - - - - - - - -
2．Used this term - - - - - - - -
（VI）Other - - - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,961,599,824.63 - 119,682,119.05 98,245,845.47 125,317,336.31 1,143,414,080.23 3,954,781,054.69
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2022 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Year 2022
Other
Items Total of owners’
Share Capital Capital reserves Comprehensive Surplus reserves Retained profit
equity
Income
I.Balance at the end of last year 506,521,849.00 1,577,392,975.96 108,762,538.39 98,245,845.47 690,879,118.40 2,981,802,327.22
- - - - - -
Add: Change of accounting policy
- - - - - -
Correcting of previous errors
- - - - - -
Other
II. Balance at the beginning of current year 506,521,849.00 1,577,392,975.96 108,762,538.39 98,245,845.47 690,879,118.40 2,981,802,327.22
- - (9,906,869.64) (8,594,803.61)
III .Changed in the current year 2,663,815.85 (1,351,749.82)
（I）Total comprehensive income - - (9,906,869.64) - 26,638,158.48 16,731,288.84
(II) Investment or decreasing of capital by owners - - - - - -
1．Ordinary Shares invested by shareholders - - - - - -
2.Amount of shares paid and accounted as owners’ equity - - - - - -
3．Other - - - - - -
（III）Profit allotment - - - 2,663,815.85 (27,989,908.30) (25,326,092.45)
1.Providing of surplus reserves - - - 2,663,815.85 (2,663,815.85) -
2．Allotment to the owners (or shareholders) - - - - (25,326,092.45) (25,326,092.45)
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．Other comprehensive income carry-over retained earnings - - - - - -
5．Other - - - - - -
(V) Special reserves - - - - - -
1. Provided this year - - - - - -
2．Used this term - - - - - -
（VI）Other - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,577,392,975.96 98,855,668.75 100,909,661.32 689,527,368.58 2,973,207,523.61
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2022 Annual Report
Amount in last year
In RMB
Year 2021
Other
Items Less: Shares in Surplus Total of owners’
Share Capital Capital reserves Comprehensive Retained profit
stock reserves equity
Income
I.Balance at the end of last year 507,772,279.00 1,583,307,509.86 7,525,438.20 107,632,186.85 94,954,652.14 676,454,033.89 2,962,595,223.54
- - - - - - -
Add: Change of accounting policy
- - - - - - -
Correcting of previous errors
- - - - - - -
Other
II. Balance at the beginning of current year 507,772,279.00 1,583,307,509.86 7,525,438.20 107,632,186.85 94,954,652.14 676,454,033.89 2,962,595,223.54
III .Changed in the current year (1,250,430.00) (5,914,533.90) (7,525,438.20) 1,130,351.54 3,291,193.33 14,425,084.51 19,207,103.68
（I）Total comprehensive income - - - 2,288,677.33 - 31,753,607.52 34,042,284.85
(II) Investment or decreasing of capital by owners (1,250,430.00) (5,914,533.90) (7,525,438.20) - - - 360,474.30
1．Ordinary Shares invested by shareholder - - - - - - -
s
2.Amount of shares paid and accounted as owners’ - - - - - - -
equity
3．Other (1,250,430.00) (5,914,533.90) (7,525,438.20) - - - 360,474.30
（III）Profit allotment - - - - 3,175,360.75 (18,371,016.22) (15,195,655.47)
1.Providing of surplus reserves - - - - 3,175,360.75 (3,175,360.75) -
2．Allotment to the owners (or shareholders) - - - - - (15,195,655.47) (15,195,655.47)
3．Other - - - - - - -
(IV) Internal transferring of owners’ equity - - - (1,158,325.79) 115,832.58 1,042,493.21 -
1. Capitalizing of capital reserves (or to capital - - - - - - -
shares)
2. Capitalizing of surplus reserves (or to capital - - - - - - -
shares)
3．Making up losses by surplus reserves. - - - - - - -
4．Other comprehensive income carry-over retained - - - -
(1,158,325.79) 115,832.58 1,042,493.21
earnings
5．Other - - - - - -
(V) Special reserves - - - - - - -
1. Provided this year - - - - - - -
2．Used this term - - - - - - -
（VI）Other - - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,577,392,975.96 - 108,762,538.39 98,245,845.47 690,879,118.40 2,981,802,327.22
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III. Basic Information of the Company
1.Company overview
Shenzhen Textile (Holdings) Co., Ltd (hereinafter referred to as "the Company") is a company limited by
sharesregistered in Guangdong Province, formerly known as Shenzhen Textile Industry Company and
established in 1984. The Company was listed on the Shenzhen Stock Exchange in August 1994. The Company
publicly issued RMB ordinary shares (A shares) and domestic listed foreign capital shares (B shares) to the
domestic and foreign public respectively and listed them for trading.
Headquartered in Shenzhen, Guangdong Province, the main business of the Company and its subsidiaries
(hereinafter referred to as "the Group") includes the research and development, production and marketing of
polarizers for liquid crystal display, as well as property management business mainly located in the prosperous
commercial area of Shenzhen and textile and garment business.
2. Scope of consolidated financial statement
The financial statements have been authorized for issuance of Board of Directors of the Company on April
1,2023.
Details of the scope of the consolidated financial statement for the year are set out in the Note (IX)
"Interests in other entities". Changes in the scope of the consolidated financial statement for the year are set out
in Note (VIII), "Changes in the Scope of Consolidation".
IV. Basis for the preparation of the financial report
（1）Basis for the preparation
The Group implements the accounting standards for enterprises and related regulations promulgated by the
Ministry of Finance. In addition, the Group also discloses relevant financial information in accordance with the
No. 15 Compilation Rules for Disclosure of Information by Companies ofIssuing Securities to the Public-
General Provisions for Financial Reporting (2014 Revision).
(2) Continuous operation
The Group evaluated its ability to continue as a going concern for the 12 months from 31 December 2022
and found no matters or circumstances that raised significant doubts about its ability to continue as a going
concern. Accordingly, the present financial reporthas been prepared on the basis of going concern assumptions.
(3) Bookkeeping basis and pricing principle
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which are
measured at fair value, the financial reportusesthe historical cost as the measurement basis. If the asset is
impaired, the corresponding impairment provision will be made in accordance with the relevant regulations.
Under historical cost measurement, an asset is measured at the fair value of the amount of cash or cash
equivalents paid or the consideration paidat the time of acquisition. Liabilities are measured by the amount of
money or assets actually received as a result of the present obligation is assumed, or the contractual amount of
the present obligation is incurred, or the amount of cash or cash equivalents expected to be paid in the ordinary
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course of life to repay the liability.
Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay
for a transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value
is observable or estimated using valuation techniques, the fair value measured and disclosed in this financial
report is determined on that basis.
For financial assets that use the transaction price as the fair value at the time of initial recognition, and a
valuation technique involving unobservable inputs is used in subsequent measures of fair value, the valuation
technique is corrected during the valuation process so that the initial recognition result determined by the
valuation technique is equal to the transaction price.
Fair value measurement is divided into three levels as to the observability of fair value inputs, and the
importance of such inputs to fair value measurement as a value inputs, and the importance of such inputs to fair
value measurement as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that can
be obtained at the measurement date.
The second-level input value is the input value that is directly or indirectly observable for the underlying
asset or liability in addition to the first-level input.
The third level input value is the unobservable input value of the underlying asset or liability.
V. Important accounting policies and accounting estimates
Specific accounting policies and accounting estimatestips:
According to the characteristics of its own production and operation, the Company determines the
depreciation of fixed assets, amortization of intangible assets and revenue recognition policies, and the specific
accounting policies are shown in notes (V)15, (V) 18 and (V) 25.
1.Statement of compliance with accounting standards for business enterprises
The financial report prepared by the Company complies with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflects the consolidated and parent financial
position of the Company as of December 31, 2022 and the consolidated and parent operating results, the
consolidated and parent shareholders' equity changes and the consolidated and parent cash flows for 2022.
2. Accounting period
The Group's fiscal year is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
Business cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to the realization
of cash or cash equivalents. The Company's business cycle is 12 months.
3.Business cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to the
realization of cash or cash equivalents. The Company's business cycle is 12 months.
4. The base currency of account
RMB is the currency in the main economic environment in which the Company and its domestic
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subsidiaries operate, and the Company and its domestic subsidiaries use RMB as the base accounting currency.
The overseas subsidiaries of the Company determine RMB as their base accounting currency according to the
currency of the main economic environment in which they operate. The currency used by the Company in the
preparation of this financial report is RMB.
5. Accounting treatment of business combinations under the common control and under non-
common control
Business combinations are divided into business combinations under common control and business
combinations under non-common control.
5.1 Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties
before and after the merger, and the control is not temporary, therefore it is a business combination under the
common control.
Assets and liabilities acquired in a business combination are measured at their carrying value on the
consolidated party at the date of consolidation. The difference between the carrying amount of net assets
acquired by the merging party and the carrying amount of the merger consideration paid is adjusted for the
equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to be offset.
Direct carrying value on the consolidated party at the date of consolidation. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger
consideration paid is adjusted for the equity premium in the capital reserve or for retained earnings if the equity
premium is insufficient to be offset.
Direct expenses incurred in connection with the business combination are recognized in profit or loss for
the period when incurred.
5.2 Business combinations and goodwill under non-common control
The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties
before and after the merger, therefore it is a business combination under non-common control.
Consolidation cost is the fair value of assets paid, liabilities incurred or assumed and equity instruments
issued to gain control of the acquired partyby the purchaser. Intermediary fees such as auditing, legal services,
valuation consulting and other related management expenses incurred by the purchaser for the business
combination are recognized in the profit or loss of the period when incurred.
The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for recognition
acquired by the purchaser in the merger are measured at fair value at the date of purchase.
The cost of the merger is greater than the difference in the fair value share of the acquiree's identifiable net
assets acquired in the merger, which is recognized as goodwill as an asset and initially measured at cost. If the
cost of the merger is less than the fair value share of the acquiree's identifiable net assets acquired in the merger,
the fair value of the acquired acquiree's identifiable assets, liabilities and contingent liabilities and the
measurement of the cost of the merger are first reviewed, and if the consolidated cost after review is still less
than the fair value share of the acquiree's identifiable net assets share acquired in the merger, which shall be
included in profit or loss for the periodoccurred.
Goodwill resulting from business combinations is presented separately in the consolidated financial
statement and measured at cost less accumulated impairment provisions.
6. Methodology for the preparation of consolidated financial statement
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The consolidation scope of the consolidated financial statements is determined on the basis of control.
Control refers to the investor having the power over the invested party, enjoying variable returns through
participating in the relevant activities of the invested party, and having the ability to use the power over the
invested party to affect its return amount. Once changes in relevant facts and circumstances lead to changes in
the relevant elements involved in the above control definition, the company will conduct a reassessment.
The merger of a subsidiary begins when the company obtains control of the subsidiary and ends when the
company loses control of the subsidiary.
For subsidiaries disposed of by the Company, the operating results and cash flows prior to the disposal
date (the date of loss of control) have been appropriately included in the consolidated income statement and
consolidated cash flow statement.
For subsidiaries obtained through business combinations not under the same control, their operating results
and cash flows since the acquisition date (the date of obtaining control) have been appropriately included in the
consolidated income statement and the consolidated cash flow statement.
For subsidiaries obtained through business combinations under the same control, regardless of whether the
business combination occurs at any point in the reporting period, it is deemed that the subsidiary is included in
the consolidation scope of the company from the date it is under the control of the ultimate controller. Its
operating results and cash flows since the beginning of the earliest period in the reporting period have been
appropriately included in the consolidated income statement and consolidated cash flow statement.
The main accounting policies and accounting periods adopted by subsidiaries are determined in accordance
with the accounting policies and accounting periods uniformly stipulated by the company.
The impact of internal transactions between the Company and its subsidiaries and between subsidiaries on
the consolidated financial statements is offset during consolidation.
The shares in the owner's equity of subsidiaries that do not belong to the parent company are treated as
minority shareholders' equity and are listed as "minority shareholders' equity" under the shareholder's equity
item in the consolidated balance sheet. The share of minority shareholders' equity in the current net profit and
loss of a subsidiary is listed as "minority shareholders' profit and loss" under the net profit item in the
consolidated income statement.
"If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share in the
initial owner's equity of the subsidiary, the balance is still offset against the minority shareholders' equity.".
Transactions that purchase minority equity in a subsidiary or dispose of partial equity investments without
losing control over the subsidiary are accounted for as equity transactions, and the book values of owner's
equity and minority shareholders' equity attributable to the parent company are adjusted to reflect changes in
their relevant rights and interests in the subsidiary. The difference between the adjusted amount of minority
shareholders' equity and the fair value of the consideration paid/received is adjusted to the capital reserve. If the
capital reserve is insufficient to offset, the retained earnings are adjusted.
7. Classification of joint venture arrangement classifications and accounting treatment methods for
joint operations
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures, which are
determined in accordance with the rights and obligations of the joint venture parties in the joint venture
arrangement by taking into account factors such as the structure, legal form and contractual terms of the
arrangement. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy the
assets related to the arrangement and bear the liabilities related to the arrangement. The jointly-operated is a
joint arrangement in which the joint venture party has rights only to the net assets of the joint arrangement.
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The Group's investments in joint ventures are accounted by using the equity method, please see Note (V)
13.3.2 "Long-term equity investments accounted by the equity method".
8. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer to
investments held by the Group for a short period (generally within three months from the date of purchase),
highly liquid, easily convertible into a known amount of cash, and with little risk of change in value.
9.Foreign currency transactions and translation of foreign currency statements
9.1 Foreign Currency Business
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate
on the date of the transaction, and the exchange rate similar to the spot rate on the date of the transaction is
determined in a systematic and reasonable manner.
At the balance sheet date, foreign currency monetary items are converted into RMB using the spot
exchange rate on that date, and the exchange difference arising from the difference between the spot exchange
rate on that date and the spot exchange rate at the time of initial recognition or the day preceding the balance
sheet date, except: (1) the exchange difference of foreign currency special borrowings eligible for capitalization
is capitalized during the capitalization period and included in the cost of the underlying asset; (2) The exchange
difference of hedging instruments for hedging in order to avoid foreign exchange risk is treated according to the
hedge accounting method; (3) The exchange difference results from changes in other carrying balances other
than amortized cost for monetary items classified as measured at fair value and changes in which are included
in other comprehensive income, it shall be recognized as profit or loss for the period.
Where the preparation of the consolidated financial statement involves overseas operations, if there are
foreign currency monetary items that substantially constitute net investment in overseas operations, the
exchange difference arising from exchange rate changes is included in the "foreign currency statement
translation difference" item included in other comprehensive income; When disposing of overseas operations, it
is included in the profit or loss of the period of disposal.
Foreign currency non-monetary items measured at historical cost are still measured at the base currency
amount translated at the spot exchange rate on the date of the transaction. Foreign currency non-monetary items
measured at fair value are translated using the spot exchange rate on the fair value determination date, and the
difference between the converted base currency amount and the original accounting currency amount is treated
as a change in fair value (including exchange rate changes) and recognized as profit or loss for the period or
recognized as other comprehensive income.
9.2 Translation of Foreign Currency Financial Statements
For the purpose of preparing consolidated financial statement, foreign currency financial statements for
overseas operations are converted into RMB statements in the following manner: all assets and liabilities in the
balance sheet are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are
converted at the spot exchange rate at the time of incurrence; All items in the income statement and items
reflecting the amount of profit distribution are converted at an exchange rate similar to the spot exchange rate
on the date of the transaction; The difference between the converted asset items and the total of liability items
and shareholders' equity items is recognized as other comprehensive income and included in shareholders'
equity.
Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates
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similar to the spot exchange rate on the occurrence date of cash flow, and the impact amount of exchange rate
changes on cash and cash equivalents is used as a reconciliation item and is shown separately in the statement
of cash flows as "Impact of exchange rate changes on cash and cash equivalents".
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts
converted from the prior-year financial statement.
Where the Group losses control of overseas operations due to disposing of all the ownership interests in
overseas operations or the disposal of part of the equity investment or other reasons, the difference in the
translation of the foreign currency statements in the ownership interests attributable to the parent company
related to the overseas operations shown below the items of shareholders' equity in the balance sheet shall be
transferred to the profit or loss of the period of disposal.
Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of
the equity investment or other reasons without lost the control of the overseas operations, the difference in the
translation of foreign currency statements related to the disposal part of the overseas operations shall be
attributed to the minority shareholders' interests and shall not be transferred to the profit or loss of the period.
Where disposing of part of the equity of an overseas operation in an associate or a joint venture, the difference
in the translation of foreign currency statements related to the overseas operation shall be transferred to the
profit or loss of the period of disposal according to the proportion of the disposal of the overseas operation.
10.Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.
In the case of the purchase or sale of financial assets in the usual manner, it shall recognize the assets to be
received and the liabilities to be incurred on the transaction date, or derecognize the assets sold on the
transaction date.
Financial assets and financial liabilities are measured at fair value at initial recognition. For financial assets
and financial liabilities measured at fair value and changes in which are recorded in profit or loss for the period,
the related transaction costs are recognized directly in profit or loss for the period; For other categories of
financial assets and financial liabilities, the related transaction costs are included in the initial recognition
amount. Where the Group initially recognizes accounts receivable that do not contain a material financing
component or do not take into account the financing component in a contract not older than one year in
accordance with No. 14Accounting Standard for Business Enterprises-Revenue (the "Revenue Standard"), the
initial measurement is made at the transaction price as defined by the revenue standard.
The effective interest rate method refers to the method of calculating the amortized cost of financial assets
or financial liabilities and apportioning interest income or interest expense into each accounting period.
The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial
asset or financial liability over the expected life of the financial asset to the carrying balance of the financial
asset or the amortized cost of the financial liability. In determining the effective interest rate, the expected cash
flow is estimated taking into account all contractual terms of the financial asset or financial liability (such as
early repayment, rollover, call option or other similar option, etc.), without taking into account the expected
credit loss.
The amortized cost of a financial asset or financial liability is the amount initially recognized less the
principal repaid, plus or minus the accumulated amortization resulting from the amortization of the difference
between the initial recognition amount and the amount due date using the effective interest rate method, and
then deduct the accumulated provision for losses (for financial assets only).
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10.1 Classification, recognition and measurement of financial assets
After initial recognition, the Group conducts subsequent measurements of different classes of financial
assets at amortized cost, measured at fair value and changes in which are recognized in other comprehensive
income, or measured at fair value and changes in which are recorded in profit or loss for the period.
The contractual clauses of a financial asset provide that the cash flows generated on a given date are only
the payment of principal and interest based on the outstanding principal amount, and the Group's business
model is aimed for managing the financial asset is to collect contractual cash flows, then the Group classifies
the financial asset as a financial asset measured at amortized cost. Such financial assets mainly include
monetary funds, notes receivable, accounts receivable and other receivables.
The contractual terms of a financial asset provide that the cash flows generated at a particular date are only
the payment of principal and interest based on the outstanding principal amount, and the Group's business
model for managing the financial asset is aimed at both the receipt of contractual cash flows and the sale of the
financial asset, then the financial asset is classified as a financial asset measured at fair value and the change
therein is recognized in other comprehensive income. Such financial assets with a maturity of more than one
year from the date of acquisition are listed as other debt investments, and if they mature within one year
(inclusive) from the balance sheet date, they are shown as non-current assets maturing within one year;
Accounts receivable and notes receivable classified as measured at fair value and changes in which are
recognized in other comprehensive income at the time of acquisition are shown in receivables financing, and the
other acquired with a maturity of one year (inclusive) are shown in other current assets.
At initial recognition, the Group may irrevocably designate investments in non-tradable equity instruments
other than contingent consideration recognized in business combinations that are under non-common control as
financial assets measured at fair value and changes in which are recognized in other comprehensive income on a
single financial asset basis. Such financial assets are listed as investments in other equity instruments.
Where a financial asset meets any of the following conditions, it indicates that the Group's purpose in
holding the financial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.
The underlying financial assets were part of a centrally managed portfolio of identifiable financial
instruments at the time of initial recognition and there was objective evidence of an actual pattern of short-term
profits in the recent.
The underlying financial asset is a derivative instrument, except for derivatives that meet the definition of a
financial guarantee contract and derivatives that are designated as effective hedging instruments.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
include financial assets classified as measured at fair value and changes in which are recorded in profit or loss
for the period and financial assets designated as measured at fair value and changes in which are recorded in
profit or loss for the period:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assets
measured at fair value and changes in which are included in other comprehensive income are classified as
financial assets measured at fair value and changes in which are recorded in profit or loss for the period.
At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, the
Group may irrevocably designate financial assets as financial assets measured at fair value and changes in
which are recorded in profit or loss for the period.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
are shown in trading financial assets, and financial assets with maturity of more than one year (or have an
indefinite maturity) from the balance sheet date and expected to be held for more than one year is shown as
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other non-current financial assets
10.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the
effective interest rate method, and the gains or losses arising from impairment or derecognition are included in
profit or loss for the period.
The Group recognizes interest income on financial assets measured at amortized cost in accordance with
the effective interest rate method. For financial assets purchased or derived that have incurred credit impairment,
the Group determines interest income based on the amortized cost of the financial asset and the credit-adjusted
effective interest rate from the initial recognition. In addition, the Group determines interest income based on
the carrying balance of financial assets multiplied by the effective interest rate.
10.1.2 Financial assets measured at fair value and changes in which are recorded in other comprehensive
income
Impairment losses or gains and interest income calculated using the effective interest rate methodrelated to
financial assets classified as measured at fair value and changes in which are included in other comprehensive
income are recognized in profit or loss for the period, and except that, changes in the fair value of such financial
assets are recognized in other comprehensive income. The amount of the financial asset recognized in profit or
loss for each period is equal to the amount that is recognized in profit or loss for each period as if it had been
measured at amortized cost. When the financial asset is derecognized, the accumulated gain or loss previously
recognized in other comprehensive income is transferred from other comprehensive income and recognized in
profit or loss for the period.
Changes in fair value in investments in non-traded equity instruments designated as measured at fair value
and the change in which are recognized in other comprehensive income are recognized in other comprehensive
income, and when the financial asset is derecognized, the accumulated gain or loss previously recognized in
other comprehensive income is transferred from other comprehensive income to retained earnings. During the
period during which the Group holds the investment in the non-tradable equity instrument, the dividend income
is recognized and recorded in profit or loss for the period when the Group's right to receive dividends has been
established, the economic benefits associated with the dividends are likely to flow into the Group and the
amount of the dividends can be reliably measured.
10.1.3 Financial assets measured at fair value and changes in which are recorded in profit or loss for the
period
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
are subsequently measured at fair value, and gains or losses resulting from changes in fair value and dividends
and interest income related to the financial asset are recorded in profit or loss for the period.
10.2 Impairment of Financial Instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured at
amortized cost, financial assets classified as measured at fair value and changes in which are recognized in
other comprehensive income, and lease receivables based on expected credit losses.
The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of
notes receivable and accounts receivable formed by transactions regulated by revenue standards that do not
contain a material financing element or do not take into account the financing component of contracts not
exceeding one year, as well as operating leases receivable arising from transactions regulated by No.
21Accounting Standard for Business Enterprises -Leases.
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For other financial instruments, the Group assesses the change in the credit risk of the relevant financial
instruments since initial recognition at each balance sheet date, except for financial assets purchased or derived
that have incurred credit impairment. If the credit risk of the Financial Instrument has increased significantly
since the initial recognition, the Group measures its loss provision by an amount equivalent to the expected
credit loss over the life of the financial instrument; If the credit risk of the financial instrument does not increase
significantly since the initial recognition, the Group measures its loss provision by an amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. Increases or reversals of credit loss
provisions are recognized as impairment losses or gains in profit or loss for the period, except for financial
assets classified as measured at fair value and changes in which are recognized in other comprehensive income.
For financial assets classified as measured at fair value and the change thereof is recorded in other
comprehensive income, the Group recognizes a credit loss provision in other comprehensive income and
includes impairment losses or gains in profit or loss for the period without reducing the carrying amount of the
financial asset as shown in the balance sheet.
Where the Group has measured a loss provision in the preceding accounting period by an amount
equivalent to the expected credit loss over the life of the financial instrument, butthe financial instrument is no
longer subject to a significant increase in credit risk since the initial recognition at the period balance sheet date,
the Group measures the loss provision for the financial instrument at the period balance sheet date by an amount
equivalent to the expected credit loss in the next 12 months, and the resulting reversal amount for loss provision
is recognized as an impairment gain in profit or loss for the period.
10.2.1 Significant increase in credit risk
Using reasonably and evidence-based forward-looking information available, the Group compares the risk
of default on financial instruments at the balance sheet date with the risk of default on the initial recognition
date to determine whether the credit risk of financial instruments has increased significantly since initial
recognition.
In assessing whether credit risk has increased significantly, the Group will consider the following factors:
(1) whether the internal price indicators have changed significantly due to changes in credit risk.
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly
(e.g., stricter contractual terms, additional collateral or higher yields) if the existing financial instrument is
derived or issued as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the
same financial instrument or similar financial instruments with the same estimated duration. These indicators
include: credit spreads, credit default swap prices for borrowers, the length and extent to which the fair value of
financial assets is less than their amortized cost, and other market information relevant to borrowers (such as
changes in the price of borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument in
fact or expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
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(6) whether there has been an adverse change in business, financial or economic circumstances that is
expected to result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) whether there has been a significant change in the actual or expected operating results of the debtor.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased
significantly.
(9) whether there has been a significant adverse change in the regulatory, economic or technical
environment in which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debt
or in the quality of the guarantee or credit enhancement provided by a third party. These changes are expected
to reduce the economic incentive for the debtor to repay the loan within the term specified in the contract or
affect the probability of default.
(11) whether there has been a significant change in the economic incentive expected to reduce the
borrower's repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract, including the waiver or
amendment of contractual obligations that may result from the anticipated breach of the contract, the granting of
interest-free periods, interest rate jumps, requests for additional collateral or guarantees, or other changes to the
contractual framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repayment
behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
Regardless of whether the credit risk has increased significantly after the above assessment, when the
payment of a financial instrument contract has been overdue for more than (inclusive) 30 days, it indicates that
the credit risk of the financial instrument has increased significantly.
At the balance sheet date, if the Group determines that a financial instrument has only a low credit risk, the
Group assumes that the credit risk of the financial instrument has not increased significantly since its initial
recognition. A financial instrument is considered to have a low credit risk if it has a low risk of default, the
borrower's ability to meet its contractual cash flow obligations in the short term is strong, and even if there are
adverse changes in the economic situation and operating environment over a longer period of time that do not
necessarily reduce the borrower's performance of its contractual cash obligations.
10.2.2 Financial assets that have undergone credit impairment
Where one or more events occur in which the Group expects to adversely affect the future cash flows of a
financial asset, the financial asset becomes a financial asset that has experienced credit impairment. Evidence
that credit impairment of financial assets has occurred includes the following observable information:
significant financial difficulties of the issuer or debtor;
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Breach of contract by the debtor, such as default or delay in payment of interest or principal;
The creditor gives the debtor concessions under economic or contractual considerations relating to the
debtor's financial difficulties that would not have been made under any other circumstances;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has
occurred.
Based on the Group's internal credit risk management, the Group considers an event of default to have
occurred when the internally advised or externally obtained information indicates that the debtor of the financial
instrument cannot fully pay creditors including the Group (without regard to any security obtained by the
Group).
Notwithstanding the above assessment, if a contract payment for a financial instrument is overdue for more
than 90 days(inclusive), the Group presumes that the financial instrument has defaulted.
10.2.3 Determination of Expected Credit Loss
The Group uses an impairment matrix on a portfolio basis on notes receivable, accounts receivable and
other receivables to determine credit losses on relevant financial instruments. The Group classifies financial
instruments into different groups based on common risk characteristics. The common credit risk characteristics
adopted by the Group include: type of financial instrument, credit risk rating, type of collateral, date of initial
recognition, industry in which the debtor is in, value of collateral relative to financial assets, etc.
For financial assets and lease receivables, the expected credit loss is the present value of the difference
between the contractual cash flows due to the Group and the cash flows expected to be collected.
The reflection factors of the Group's methodology for measuring expected credit losses on financial
instruments include: an unbiased probability-weighted average amount determined by evaluating a range of
possible outcomes; the time value of money; reasonable and well-founded information about past events,
current conditions, and projections of future economic conditions that can be obtained at the balance sheet date
without unnecessary additional costs or efforts.
10.2.4 Write-down of Financial Assets
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will be
recovered in whole or in part, the carrying balance of the financial assets will be written down directly. Such
write-downs constitute derecognition of the underlying financial assets.
10.3 Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to
receive cash flows from the financial asset is terminated; (2) the financial asset has been transferred and
substantially all of the risks and rewards in the ownership of the financial asset have been transferred to the
transferring party; (3) the financial asset has been transferred, and although the Group has neither transferred
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nor retained substantially all of the risks and rewards in the ownership of the financial asset, it has not retained
control over the financial asset.
Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a
financial asset, and retains control of the financial asset, it will continue to recognize the transferred financial
asset to the extent that it continues to be involved in the transferred financial asset and recognize the relevant
liabilities accordingly. The Group measures the relevant liabilities as follows:
Where the transferred financial assets are measured at amortized cost, the carrying amount of the relevant
liability is equal to the carrying amount of the financial asset that continues to be involved in the transferred less
the amortized cost of the rights retained by the Group (if the Group retains the relevant rights as a result of the
transfer of financial assets) plus the amortized cost of the obligations assumed by the group (if the group has
assumed the relevant obligations as a result of the transfer of financial assets), and the relevant liabilities are not
designated as financial liabilities measured at fair value and changes in which are recorded in profit or loss for
the period.
Where the transferred financial assets are measured at fair value, the carrying amount of the relevant
liabilities is equal to the carrying amount of the financial assets that continue to be involved in the transferred
financial assets less the fair value of the rights retained by the Group (if the Group retains the relevant rights as
a result of the transfer of financial assets) plus the fair value of the obligations assumed by the Group (if the
Group has assumed such obligations as a result of the transfer of financial assets), the fair value of such rights
and obligations is the fair value when measured on an independent basis.
If the overall transfer of financial assets satisfies the conditions for derecognition, the difference between
the carrying amount of the transferred financial assets at the derecognition date and the consideration received
as a result of the transfer of the financial and the sum of the amount corresponding to the derecognition portion
of the accumulated fair value change originally included in other comprehensive income is included in profit or
loss for the period. If the Group transfers financial assets that are investments in non-traded equity instruments
designated as measured at fair value and changes in which are recognized in other comprehensive income, the
accrued gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income and recorded in retained earnings.
If a partial transfer of financial assets satisfies the conditions for derecognition, the carrying amount of the
financial assets as a whole before the transfer is apportioned between the derecognized portion and the
continuing recognition portion at the respective relative fair value on the transfer date, and the difference
between the sum of the amount of the consideration received in the derecognized portion and the amount
corresponding to the derecognized portion of the accumulated fair value change originally included in other
comprehensive income and the carrying amount of the derecognized portion at the derecognition date is
included in profit or loss for the current period. If the Group transfers financial assets that are investments in
non-traded equity instruments designated as measured at fair value and changes in which are recognized in
other comprehensive income, the accrued gains or losses previously recognized in other comprehensive income
are transferred from other comprehensive income and recorded in retained earnings.
If the conditions for derecognition are not met for the overall transfer of financial assets, the Group
continues to recognize the transferred financial assets as a whole and recognizes the consideration received as a
liability.
10.4 Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equity
instruments at initial recognition according to the contract terms of the financial instruments issued and their
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economic essence, not just in legal form, combined with the definitions of financial liabilities and equity
instruments.
10.4.1 Classification, recognition and measurement of financial liabilities
Financial liabilities are divided into financial liabilities measured at fair value and whose changes are
included in current profits and losses at initial recognition and other financial liabilities.
10.4.1.1 Financial liabilities measured at fair value and whose changes are included in the current profits
and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses
include transactional financial liabilities (including derivatives belonging to financial liabilities) and financial
liabilities designated as measured at fair value and whose changes are included in current profits and losses.
Except for derivative financial liabilities which are listed separately, financial liabilities measured at fair value
and whose changes are included in current profits and losses are listed as transactional financial liabilities.
Financial liabilities that meet one of the following conditions, indicate that the purpose of the Group's
financial liabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.
The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralized
management at the initial recognition, and there is objective evidence to show the actual short-term profit model
in the near future.
Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial
guarantee contract and derivatives that are designated as effective hedging instruments.
The Group can designate financial liabilities that meet one of the following conditions as financial
liabilities measured at fair value and whose changes are included in current profits and losses at initial
recognition: (1) The designation can eliminate or significantly reduce accounting mismatch; (2) According to
the risk management or investment strategy stated in the formal written documents of the Group, the financial
liability portfolio or the portfolio of financial assets and financial liabilities are managed and evaluated on the
basis of fair value, and reported to key management personnel within the Group on this basis; (3) Qualified
mixed contracts containing embedded derivatives.
Transactional financial liabilities are subsequently measured at fair value, and gains or losses caused by
changes in fair value and dividends or interest expenses related to these financial liabilities are included in
current profits and losses.
For financial liabilities designated as being measured at fair value and whose changes are included in the
current profits and losses, the changes in fair value of the financial liabilities caused by changes in the Group's
own credit risk are included in other comprehensive income, and other changes in fair value are included in the
current profits and losses. When the financial liabilities are derecognized, the accumulated change of its fair
value caused by the change of their own credit risk previously included in other comprehensive income is
carried forward to retained income. Dividends or interest expenses related to these financial liabilities are
included in the current profits and losses. If the accounting mismatch in profit and loss will be caused or
enlarged by handling the impact of the changes in credit risk of these financial liabilities in the above way, the
Group will include all the gains or losses of the financial liabilities (including the amount affected by the
changes in credit risk) in the current profits and losses.
10.4.1.2 Other financial liabilities
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Other financial liabilities, except those caused by the transfer of financial assets that do not meet the
conditions for derecognition or continue to be involved in the transferred financial assets, are classified as
financial liabilities measured in amortized cost and subsequently measured in amortized cost. The gains or
losses arising from derecognition or amortization are included in the current profits and losses.
If the modification or renegotiation of the contract between the Group and the counterparty does not result
in the termination of the recognition of the financial liabilities that are subsequently measured according to
amortized cost, but the cash flow of the contract changes, the Group recalculates the book value of the financial
liabilities and records the relevant gains or losses into the current profits and losses. The recalculated book
value of such financial liabilities is determined by the Group according to the present value of discounted
contract cash flow that will be renegotiated or modified according to the original actual interest rate of the
financial liabilities. For all costs or expenses arising from the modification or renegotiation of the contract, the
Group adjusts the book value of the modified financial liabilities and amortizes them within the remaining term
of the modified financial liabilities.
10.4.2 Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged, the recognition of
financial liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign an
agreement to replace the original financial liabilities by undertaking new financial liabilities, and the contract
terms of the new financial liabilities are substantially different from those of the original financial liabilities, the
Group will derecognize the original financial liabilities and recognize the new financial liabilities at the same
time.
If all or part of the financial liabilities are derecognized, the difference between the book value of the
derecognized part and the consideration paid (including the transferred non-cash assets or the new financial
liabilities undertaken) will be included in the current profits and losses.
10.4.3 Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity
instruments by the Group are treated as changes in equity. The Group does not recognize changes in the fair
value of equity instruments. Transaction costs related to equity transactions are deducted from equity.
The distribution of equity instrument holders by the Group is treated as profit distribution, and the stock
dividends paid do not affect the total shareholders' equity.
10.5 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities, and
this legal right is currently enforceable, and the Group plans to settle the financial assets on a net basis or realize
the financial assets and pay off the financial liabilities at the same time, the financial assets and financial
liabilities are listed in the balance sheet at the amount after offsetting each other. In addition, financial assets
and financial liabilities are listed separately in the balance sheet and do not offset each other.
11. Receivable financing
For notes receivable classified as at fair value and whose changes are included in other comprehensive
income, the part with a term of one year (including one year) from the date of acquisition is listed as receivable
financing; the part with a term of more than one year from the date of acquisition is listed as other creditor's
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right investment. See Note (3) 10 "Financial Instruments" for relevant accounting policies.
12. Inventory
12.1 Classification of inventory
The Group's inventory mainly includes raw materials, products in process, finished products and materials
entrusted for processing. Inventory is initially measured at cost, which includes purchasing cost, processing cost
and other expenses incurred to make inventory reach the current place and use state.
12.2 Valuation method of issued inventory
When the inventory is issued, the actual cost of the issued inventory is determined by the weighted mean
method.
12.3 Determination basis of net realizable value of inventory
On the balance sheet date, inventories are measured according to the lower of cost and net realizable value.
When the net realizable value is lower than the cost, the inventory depreciation provision is withdrawn.
Net realizable value refers to the estimated selling price of inventory minus the estimated cost, estimated
sales expenses and related taxes and fees at the time of completion in daily activities. When determining the net
realizable value of inventory, it is based on the conclusive evidence obtained, and the purpose of holding
inventory and the influence of events after the balance sheet date are also considered.
Inventory depreciation provision is drawn according to the difference between the cost of a single
inventory item and its net realizable value.
After the inventory depreciation provision is withdrawn, if the influencing factors of previous write-down
of inventory value have disappeared, resulting in the net realizable value of inventory being higher than its book
value, it will be reversed within the original amount of inventory depreciation provision, and the reversed
amount will be included in the current profits and losses.
12.4 Inventory system
The inventory system is perpetual inventory system.
12.5 Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-
off method.
13. Long-term equity investment
13.1 Criteria for joint control and important influence
Control means that the investor has the power over the investee, enjoys variable returns by participating in
the related activities of the investee, and has the ability to influence the amount of returns by using the power
over the investee. Joint control refers to the common control of an arrangement according to the relevant
agreement, and that the related activities of the arrangement must be unanimously agreed by the participants
who share the control rights before making decisions. Significant influence refers to the power to participate in
decision-making on the financial and operating policies of the investee, but it cannot control or jointly control
the formulation of these policies with other parties. When determining whether the investee can be controlled or
exert significant influence, the potential voting rights factors such as convertible corporate bonds and current
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executable warrants of the investee held by investors and other parties have been considered.
13.2 Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control, the initial
investment cost of the long-term equity investment shall be the share of the book value of the owners' equity of
the merged party in the consolidated financial statements of the final controlling party on the merger date. The
capital reserve shall be adjusted for the difference between the initial investment cost of long-term equity
investment and the book value of cash paid, non-cash assets transferred and debts undertaken; If the capital
reserve is insufficient to be offset, the retained income shall be adjusted. If equity securities are issued as the
merger consideration, the initial investment cost of long-term equity investment shall be the share of the book
value of the owners' equity of the merged party in the consolidated financial statements of the final controlling
party on the merger date, the share capital shall be the total face value of issued shares, and the capital reserve
shall be adjusted according to the difference between the initial investment cost of long-term equity investment
and the total face value of the issued shares; If the capital reserve is insufficient to be offset, the retained income
shall be adjusted.
For the long-term equity investment obtained from the business merger not under the same control, the
initial investment cost of the long-term equity investment shall be the merger cost on the purchase date.
Intermediary expenses such as audit, legal services, evaluation and consultation and other related
management expenses incurred by the merging party or the purchaser for business merger are included in the
current profits and losses when incurred.
Long-term equity investment obtained by other means except the long-term equity investment formed by
business merger shall be initially measured at cost. If the additional investment can exert a significant influence
or implement joint control which however does not constitute control on the investee, the long-term equity
investment cost is the sum of the fair value of the original equity investment determined in accordance with the
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
plus the new investment cost.
13.3 Subsequent measurement and profit and loss recognition method
13.3.1 Long-term equity investment calculated by cost method
The company's financial statements use the cost method to calculate the long-term equity investment in
subsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.
Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or
recover investment to adjust the cost of long-term equity investment. The current investment income is
recognized according to the cash dividend or profit declared by the investee.
13.3.2 Long-term equity investment calculated by equity method
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method.
An associated enterprise refers to the investee over which the Group can exert significant influence, and a joint
venture refers to a joint venture arrangement in which the Group has rights only over the net assets of the
arrangement.
When accounting by equity method, if the initial investment cost of long-term equity investment is greater
than the fair value share of the identifiable net assets of the investee, the initial investment cost of long-term
equity investment will not be adjusted; If the initial investment cost is less than the fair value share of the
identifiable net assets of the investee, the difference shall be included in the current profits and losses, and the
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cost of long-term equity investment shall be adjusted.
When accounting by the equity method, the investment income and other comprehensive income are
recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the investee, and the book value of long-term equity investment is adjusted; The share is calculated
according to the profit or cash dividend declared by the investee, and the book value of long-term equity
investment is reduced accordingly; For other changes in the owners' equity of the investee except the net profit
and loss, other comprehensive income and profit distribution, the book value of the long-term equity investment
shall be adjusted and included in the capital reserve. When recognizing the share of the net profit and loss of the
investee, the net profit of the investee shall be adjusted and recognized based on the fair value of the identifiable
assets of the investee at the time of investment. If the accounting policies and accounting periods adopted by the
investee are inconsistent with those of the Company, the financial statements of the investee shall be adjusted
according to the accounting policies and accounting periods of the Company, so as to recognize the investment
income and other comprehensive income. For the transactions between the Group and the associated enterprises
and joint ventures, if the assets invested or sold do not constitute business, the unrealized internal transaction
gains and losses shall be offset by the portion belonging to the Group according to the proportion enjoyed, and
the investment gains and losses shall be recognized on this basis. However, the unrealized internal transaction
losses between the Group and the investee belong to the impairment losses of the transferred assets and shall
not be offset.
When recognizing the share of the net loss of the investee, the book value of the long-term equity
investment and other long-term rights and interests that substantially constitute the net investment of the
investee shall be written down to zero. In addition, if the Group is obligated to bear additional losses to the
investee, the estimated liabilities will be recognized according to the expected obligations and included in the
current investment losses. If the investee realizes the net profit in the future, the Group will resume the
recognition of the income share after the income share makes up for the unrecognized loss share.
13.4 Disposal of long-term equity investment
When disposing of long-term equity investment, the difference between its book value and the actual
purchase price is included in the current profits and losses. For the long-term equity investment accounted by
the equity method, if the remaining equity after disposal is still accounted by the equity method, other
comprehensive income originally accounted by the equity method shall be accounted for on the same basis as
the direct disposal of related assets or liabilities by the investee; Owners' equity recognized by changes in other
owners' equity of the investee except net profit and loss, other comprehensive income and profit distribution
shall be carried forward to current profits and losses in proportion. If the long-term equity investment accounted
for by the cost method is still accounted for by the cost method after disposal, the other comprehensive income
recognized by the equity method accounting or the recognition of financial instruments and accounting
standards before gaining control of the investee shall be accounted for on the same basis as the direct disposal
of related assets or liabilities by the investee; Changes in owners' equity other than net profit and loss, other
comprehensive income and profit distribution in the net assets of the investee recognized by using the equity
method are carried forward to the current profits and losses in proportion.
If the Group loses control of the investee due to the disposal of part of its equity investment, if the
remaining equity after disposal can exercise joint control or exert significant influence on the investee in the
preparation of individual financial statements, it shall be accounted for by the equity method instead, and the
remaining equity shall be treated as if it were adjusted by the equity method at the time of acquisition; If the
remaining equity after disposal cannot be jointly controlled or exert significant influence on the investee, it shall
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be accounted for according to the relevant provisions of the standards for the recognition and measurement of
financial instruments, and the difference between its fair value and book value on the date of control loss shall
be included in the current profits and losses. For other comprehensive income recognized by the Group before it
gains control of the investee, when it loses control of the investee, it shall be treated on the same basis as the
direct disposal of related assets or liabilities by the investee. Changes in owners' equity in the net assets of the
investee, except net profit and loss, other comprehensive income and profit distribution, shall be carried forward
to current profits and losses when it loses control of the investee. If the remaining equity after disposal is
accounted by the equity method, other comprehensive income and other owners' equity will be carried forward
in proportion; If the remaining equity after disposal is changed to accounting treatment according to the
recognition and measurement standards of financial instruments, all other comprehensive income and other
owners' equity will be carried forward.
If the Group loses joint control or significant influence on the investee due to the disposal of some equity
investments, the remaining equity after disposal shall be accounted for according to the recognition and
measurement standards of financial instruments, and the difference between its fair value and book value on the
date of joint control loss or significant influence shall be included in the current profits and losses. Other
comprehensive income recognized by the original equity investment due to accounting by the equity method
shall be accounted for on the same basis as the direct disposal of relevant assets or liabilities by the investee
when the equity method is terminated. All the owners' equity recognized by the investee due to changes in other
owners' equity except net profit and loss, other comprehensive income and profit distribution shall be carried
forward to the current investment income when the equity method is terminated.
The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions
until it loses control. If the above transactions belong to a package transaction, each transaction will be treated
as a transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control,
the difference between the price of each disposal and the book value of the long-term equity investment
corresponding to the disposed equity will be recognized as other comprehensive income, and then carried
forward to the current profits and losses when it loses control.
14. Investment real estate
Measurement model of investment real estate
Measurement by cost method
Depreciation or amortization method
Investment real estate refers to real estate held to earn rent or capital appreciation, or both, including rented
houses and buildings.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment real
estate are included in the cost of investment real estate if the economic benefits related to the asset are likely to
flow in and the cost can be measured reliably. Other subsequent expenditures are included in the current profits
and losses when incurred.
The Group adopts the cost model for subsequent measurement of investment real estate, and depreciates or
amortizes it according to the policy consistent with the right to use houses, buildings or land.
When the investment real estate is disposed of, or permanently withdrawn from use, and it is not expected
to obtain economic benefits from its disposal, the recognition of the investment real estate will be terminated.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deducting its book value and related taxes is included in the current profits and losses.
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15. Fixed assets
15.1 Recognition conditions
Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management,
with a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits
related to them are likely to flow into the Group and their costs can be measured reliably. Fixed assets are
initially measured at cost.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economic
benefits related to the fixed assets are likely to flow in and the cost can be measured reliably, and the book
value of the replaced part shall be derecognized. Other subsequent expenditures are included in the current
profits and losses when incurred.
15.2 Depreciation method
Fixed assets shall be depreciated within their service life by using the life-average method from the month
following the scheduled serviceable state. The depreciation methods, service life, estimated net salvage and
annual depreciation rate of various fixed assets are as follows:
Estimated net salvage rate Annual depreciation rate
Category Depreciation life (year)
(%) (%)
Houses and buildings 10-40 0.00-4.00 2.40-10.00
Machinery equipment 10-14 4.00 6.86-9.60
Transportation equipment 8 4.00 12.00
Electronic equipment and others 5 4.00 19.20
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixed
assets after deducting the estimated disposal expenses, assuming that the expected service life of the fixed assets
has expired and is in the expected state at the end of the service life.
15.3 Other instructions
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through
the use or disposal, the fixed assets is derecognized. The difference between the disposal income from the sale,
transfer, scrapping or damage of fix assets after deducting its book value and related taxes is included in the
current profits and losses.
At least at the end of the year, the Group will review the service life, estimated net salvage and
depreciation method of fixed assets, and if there is any change, it will be treated as a change in accounting
estimate.
16. Construction in progress
The construction in progress is measured according to the actual cost, which includes various project
expenditures incurred during the construction period, capitalized borrowing costs before the project reaches the
scheduled serviceable state and other related expenses. No depreciation is allowed for construction in progress.
Construction in progress is carried forward to fixed assets after it reaches the scheduled serviceable state.
17. Borrowing costs
Borrowing costs that can be directly attributed to the purchase, construction or production of assets that
meet the capitalization conditions will be capitalized when the asset expenditure has occurred, the borrowing
costs have occurred, and the necessary purchase, construction or production activities to make the assets reach
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the predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet
the capitalization conditions purchased, constructed or produced reach the predetermined serviceable state or
saleable state. The remaining borrowing costs are recognized as expenses in the current period.
18. Intangible assets
18.1 Valuation method, service life and impairment test of intangible assets
Intangible assets include land use rights, software and patent rights.
Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized
by straight-line method in equal installments within their expected service life from the time they are available
for use. Intangible assets with uncertain service life shall not be amortized. The amortization method, service
life and estimated net salvage of various intangible assets are as follows:
Estimated net salvage
Category Amortization method Service life (year)
rate (%)
Land use right Straight-line method 50 -
Software Straight-line method 5 -
Patent Straight-line method 15 -
At the end of the period, the service life and amortization method of intangible assets with limited service
life shall be reviewed and adjusted if necessary.
For the impairment test of intangible assets, please refer to Note (V) 19 "Impairment of Long-term Assets"
for details.
18.2 Internal R&D expenditure
Expenditure in the research stage is included in the current profits and losses when incurred.
Expenditures in the development stage are recognized as intangible assets if they meet the following
conditions at the same time. Expenditures in the development stage that cannot meet the following conditions
are included in the current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in
the market, and the intangible assets will be used internally, which can prove their usefulness;
(4) Having sufficient technical, financial and other resources to support the development of the intangible
assets, and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure, all
the R&D expenditures incurred shall be included in the current profits and losses. The cost of intangible assets
formed by internal development activities only includes the total expenditure from the time when the
capitalization conditions are met to the time when the intangible assets reach the intended use, and the
expenditure that has been expensed into profit and loss before the capitalization conditions are met in the
development process will not be adjusted.
19. Long-term asset impairment
On each balance sheet date, the Group checks whether there are signs that long-term equity investment,
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investment real estate measured by cost method, fixed assets, construction in progress, right-to-use assets and
intangible assets with definite service life may be impaired. If these assets show signs of impairment, the
recoverable amount is estimated. Intangible assets with uncertain service life and intangible assets that have not
yet reached the serviceable state are tested for impairment every year, regardless of whether with signs of
impairment.
Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group is determined based on the asset
group to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the
asset or asset group minus the disposal expenses or the present value of its expected future cash flow.
If the recoverable amount of an asset is lower than its book value, the asset impairment provision shall be
accrued according to the difference and included in the current profits and losses.
Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of
goodwill, it shall be conducted in combination with the related asset group or asset group portfolio. That is,
from the purchase date, the book value of goodwill is allocated to the asset group or asset group portfolio that
can benefit from the synergistic effect of business merger in a reasonable way. If the recoverable amount of the
asset group or asset group portfolio containing the allocated goodwill is lower than its book value, the
corresponding impairment loss will be recognized. The amount of impairment loss will firstly deduct the book
value of goodwill allocated to the asset group or asset group portfolio, and then deduct the book value of other
assets according to the proportion of the book value of assets other than goodwill in the asset group or asset
group portfolio.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in future
accounting periods.
20. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current
period and subsequent periods with an amortization period of more than one year. Long-term deferred expenses
shall be amortized evenly by stages during the expected benefit period.
21. Contractual liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and liabilities under the same contract are
listed on a net basis.
22. Employee Remuneration
22.1 Accounting treatment method of short-term Remuneration
During the accounting period when employees provide services for the Group, the Group recognizes the
actual short-term remuneration as a liability, and records it into the current profits and losses or related asset
costs. The employee welfare expenses incurred by the Group are included in the current profits and losses or
related asset costs according to the actual amount when actually incurred. If employee welfare expenses are
non-monetary benefits, they shall be measured at fair value.
The social insurance premiums such as medical insurance premium, work injury insurance premium and
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maternity insurance premium and housing provident fund paid by the Group for employees, as well as the trade
union funds and employee education funds withdrawn by the Group according to regulations, shall be
calculated according to the stipulated accrual basis and accrual ratio during the accounting period when
employees provide services for the Group to determine the employee compensation amount, and recognize the
corresponding liabilities, and be included in the current profits and losses or related asset costs.
22.2 Accounting treatment of post-employment benefits
Post-employment benefits are all defined contribution plans.
During the accounting period when employees provide services for the Group, the amount payable
calculated according to the set deposit plan is recognized as a liability, and included in the current profits and
losses or related asset costs.
22.3 Accounting treatment of dismissal benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from
the dismissal benefits shall be recognized at the earlier of the following two dates, and included in the current
profits and losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to
terminate labor relations or the proposal to cut back; When the Group recognizes the costs or expenses related
to the reorganization involving the payment of dismissal benefits.
23. Estimated liabilities
When the obligation related to contingencies such as customer return are the current obligations
undertaken by the Group, and the fulfillment of this obligation is likely to lead to the outflow of economic
benefits, and the amount of this obligation can be measured reliably, it is recognized as estimated liabilities.
On the balance sheet date, considering the risk, uncertainty and time value of money related to
contingencies, the estimated liabilities are measured according to the best estimate of the expenditure required
to fulfill the relevant current obligations. If the time value of money is significant, the best estimate is
determined by the discounted amount of expected future cash outflow.
24. Share-based payment
Share-based payment of the Group is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees. Share-based
payment of the Group is equity-settled share-based payment.
24.1 Equity-settled share-based payment
Equity-settled share-based payment granted to employees
Equity-settled share-based payment in exchange for services provided by employees is measured by the
fair value of the equity instruments granted to employees on the grant date in the Group. During the waiting
period, the amount of the fair value is based on the best estimate of the number of exercisable equity
instruments, calculated by the straight-line method and included in the relevant costs or expenses, and the
capital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Group makes the best estimate based on the
latest subsequent information such as changes in the number of employees with vesting rights, and corrects the
number of equity instruments with estimated vesting rights. The impact of the above estimate is included in the
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relevant costs or expenses of the current period, and the capital reserve is adjusted accordingly.
24.2 Accounting treatment related to implementation, modification and termination of share-based
payment plan
When the Group modifies the share-based payment plan, if the modification increases the fair value of the
equity instruments granted, the increase in services obtained will be recognized accordingly; If the modification
increases the number of equity instruments granted, the fair value of the increased equity instruments will be
recognized as an increase in service acquisition accordingly. The increase in the fair value of equity
instruments refers to the difference between the fair value of equity instruments before and after modification
on the modification date. If the total fair value of share-based payment is reduced or the terms and conditions
of the share-based payment plan are modified in other ways that are unfavorable to employees, the accounting
treatment for the services obtained will continue, as if the change had never occurred, unless the Group cancels
part or all of the equity instruments granted.
During the waiting period, if the granted equity instruments are cancelled, the Group will accelerate the
cancellation of the granted equity instruments, and immediately include the amount to be recognized in the
remaining waiting period in the current profits and losses, and at the same time recognize the capital reserve. If
employees or other parties can choose to meet the conditions of unfeasible rights but fail to meet them within
the waiting period, the Group will cancel them as the instrument for granting equity.
25.Revenue
The Company's revenue mainly comes from the following business types:
(1) Polarizer sales business;
(2) Textile sales business;
(3) Property leasing and management business;
(4) Other businesses.
When the company fulfills its contractual obligations, that is, when the customer obtains control of the
relevant goods or services, revenue is recognized based on the transaction price allocated to the performance
obligation. The performance obligation refers to the commitment of the company to transfer goods or services
that can be clearly distinguished to customers in the contract. "Transaction price" refers to the amount of
consideration that the Company is expected to be entitled to receive for the transfer of goods or services to
customers, but does not include amounts received on behalf of third parties and amounts that the Company
expects to return to customers.
The company evaluates the contract on the contract start date, identifies each individual performance
obligation included in the contract, and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point in time. If one of the following conditions is met,
it is a performance obligation performed within a certain period of time, and the company recognizes revenue
over a period of time based on the performance progress: (1) The customer obtains and consumes the economic
benefits brought about while the company performs the contract; (2) The customer can control the goods under
construction during the performance of the company's contract; (3) The goods produced during the performance
of the contract by the company have irreplaceable uses, and the company has the right to receive payments for
the part of the performance that has been completed so far accumulated throughout the contract period.
Otherwise, the company recognizes revenue at the time when the customer obtains control of the relevant goods
or services.
If a contract contains two or more performance obligations, the company will allocate the transaction price
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to each individual performance obligation based on the relative proportion of the individual selling price of the
goods or services promised by each individual performance obligation on the contract commencement date.
However, if there is conclusive evidence that the contract discount or variable consideration is only related to
one or more (but not all) performance obligations under the contract, the company will allocate the contract
discount or variable consideration to the relevant one or more performance obligations. "Individual selling
price" refers to the price at which the company separately sells goods or services to customers. If the individual
selling price cannot be directly observed, the company comprehensively considers all relevant information that
can be reasonably obtained, and estimates the individual selling price using observable input values to the
maximum extent.
For sales with sales return clauses, when the customer obtains control of the relevant goods, the company
recognizes revenue based on the expected amount of consideration to be charged for transferring the goods to
the customer (i.e., excluding the expected amount to be refunded due to sales return), and recognizes liabilities
based on the expected amount to be refunded due to sales return; At the same time, based on the expected book
value of the returned goods at the time of transfer, the balance after deducting the expected costs incurred in
recovering the goods (including the impairment of the value of the returned goods) is recognized as an asset.
Based on the book value of the transferred goods at the time of transfer, the net carrying cost of the above asset
costs is deducted.
For sales with quality assurance clauses, if the quality assurance provides a separate service in addition to
assuring the customer that the goods or services sold meet established standards, the quality assurance
constitutes a single performance obligation. Otherwise, the Company will conduct accounting treatment for
quality assurance responsibilities in accordance with the Accounting Standards for Business Enterprises No. 13
- Contingencies.
The Company determines whether it is the primary responsible person or agent when engaging in
transactions based on whether it has control over the goods or services before transferring them to customers. If
the company is able to control the goods or services before transferring them to customers, the company is the
main responsible person and recognizes revenue based on the total amount of consideration received or
receivable; Otherwise, the company acts as an agent and recognizes revenue based on the expected amount of
commissions or handling fees that it is entitled to receive. This amount is determined based on the net amount
of the total amount of consideration received or receivable minus the amount payable to other related parties.
Where the Company advances money from customers for the sale of goods or services, the money is first
recognized as a liability, and then converted into income when the relevant performance obligations are fulfilled.
When the Company does not need to return the advance payment and the customer may waive all or part of
their contractual rights, if the Company expects to be entitled to receive the amount related to the contractual
rights waived by the customer, the above amount shall be recognized as income on a pro rata basis in
accordance with the mode in which the customer exercises contractual rights; Otherwise, the Company will
only convert the relevant balance of the above liabilities into revenue when the likelihood of the customer
requesting fulfillment of the remaining performance obligations is extremely low.
For the accounting policies for recognizing the Company's property lease income, see Note V, 28.2.2.1,
"The Company records operating lease business as a lessor.".
26. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from
the government free of charge. Government subsidies are recognized when they can meet the conditions
attached to government subsidies and can be received.
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If government subsidies are monetary assets, they shall be measured according to the amount received or
receivable.
26.1 Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group's
government subsidies, these government subsidies are government subsidies related to assets.
Government subsidies related to assets are recognized as deferred income, and are included in the current
profits and losses in installments according to the straight-line method within the service life of the related
assets.
26.2 Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies, such as industry development support funds, enterprise development
support funds and tax subsidies, cannot form long-term assets, these government subsidies are government
subsidies related to income.
Government subsidies related to income, if used to compensate related costs and losses in future periods,
will be recognized as deferred income, and are included in the current profits and losses during the period when
related costs or expenses are recognized; if used to compensate the related costs and losses that have occurred,
will be directly included in the current profits and losses.
Government subsidies related to the daily activities of the Group are included in other income according to
the nature of economic business. Government subsidies unrelated to the daily activities of the Group are
included in non-operating income.
When the confirmed government subsidy needs to be returned, if there is a relevant deferred revenue
balance, the relevant deferred income book balance will be offset, and the excess will be included in the current
profits and losses; If there is no relevant deferred income, it will be directly included in the current profits and
losses.
27. Deferred income tax assets/Deferred income tax liabilities
Income tax expenses include current income tax and deferred income tax.
27.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous
periods shall be measured by the expected income tax payable (or refunded) calculated in accordance with the
provisions of the tax law.
27.2 Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis, and the
temporary difference between the book values of items that are not recognized as assets and liabilities but can
be determined in tax basis according to the provisions of the tax law and tax basis, the balance sheet liability
method is adopted to recognize deferred income tax assets and deferred income tax liabilities.
In general, all temporary differences are recognized as related deferred income tax. However, for
deductible temporary differences, the Group recognizes related deferred income tax assets to the extent that it is
likely to obtain taxable income to offset the deductible temporary differences. In addition, for the temporary
differences related to the initial recognition of goodwill and the initial recognition of assets or liabilities arising
from transactions that are neither business merger nor affect accounting profits and taxable income (or
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deductible losses), the relevant deferred income tax assets or liabilities are not recognized.
For deductible losses and tax deductions that can be carried forward to future years, the corresponding
deferred income tax assets are recognized to the extent that it is likely to obtain future taxable income for
deducting deductible losses and tax deductions.
The Group recognizes deferred income tax liabilities arising from taxable temporary differences related to
investments in subsidiaries, associated enterprises and joint ventures, unless the Group can control the time
when the temporary differences are reversed, and the temporary differences are unlikely to be reversed in the
foreseeable future. For deductible temporary differences related to the investments of subsidiaries, associated
enterprises and joint ventures, the Group recognizes the deferred income tax assets only when the temporary
differences are likely to be reversed in the foreseeable future and the taxable income used to offset the
deductible temporary differences is likely to be obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be measured
according to the applicable tax rate during the expected recovery of related assets or settlement of related
liabilities.
Except that the current income tax and deferred income tax related to transactions and events directly
included in other comprehensive income or shareholders' equity are included in other comprehensive income or
shareholders' equity, and the deferred income tax arising from business merger adjusts the book value of
goodwill, the remaining current income tax and deferred income tax expenses or gains are included in the
current profits and losses.
On the balance sheet date, the book value of deferred income tax assets shall be rechecked. If it is probable
that sufficient taxable income will not be obtained in the future to offset the benefits of deferred income tax
assets, the book value of deferred income tax assets shall be written down. When sufficient taxable income is
likely to be obtained, the amount written down will be reversed.
27.3 Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time, the Group's current income tax assets and current income tax
liabilities are presented on an offset net basis.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis,
and the deferred income tax assets and liabilities are related to the income tax levied by the same tax collection
department on the same taxpayer or to different taxpayers, but in the future, the taxpayers involved intend to
settle the current income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities at the
same time, the Group's deferred income tax assets and liabilities are presented on an offset net basis.
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28. Lease
"Lease" refers to a contract whereby the lessor transfers the right to use an asset to the lessee for a certain period
of time to obtain consideration.
On the contract start date, the company evaluates whether the contract is a lease or includes a lease. Unless the
terms and conditions of the contract change, the company will not reassess whether the contract is a lease or
includes a lease.
28.1 The Company as lessee
28.1.1 Spin-Off of Leases
"If a contract contains one or more lease and non lease parts simultaneously, the company will split the separate
lease and non lease parts and allocate the contract consideration based on the relative proportion of the sum of
the individual prices of each lease part and the individual prices of the non lease part.".
28.1.2 Right to Use Assets
Except for short-term leases, the Company recognizes the right to use assets for leases on the lease beginning
date. The lease term start date refers to the start date on which the lessor provides the leased asset for use by the
company. The right to use assets are initially measured at cost. This cost includes:
The initial measurement amount of the lease liability;
The amount of lease payments paid on or before the start date of the lease term, if there is a lease incentive,
shall be deducted from the relevant amount of the lease incentive enjoyed;
Initial direct expenses incurred by the company;
The estimated costs that the company will incur to dismantle and remove 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 refers to the relevant depreciation provisions of the Accounting Standards for Business
Enterprises No. 4 - Fixed Assets to accrue depreciation for the right to use assets. If the company can
reasonably determine that it will acquire the ownership of the leased asset upon the expiration of the lease term,
the right to use asset shall be depreciated within the remaining service life of the leased asset. If it is impossible
to reasonably determine that ownership of the leased asset can be obtained upon the expiration of the lease term,
depreciation shall be accrued during the shorter of the lease term or the remaining useful life of the leased asset.
The Company determines whether the right to use assets have been impaired in accordance with the Accounting
Standards for Business Enterprises No. 8 - Asset Impairment, and conducts accounting treatment for the
identified impairment losses.
28.1.3 Lease liabilities
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Except for short-term leases, the Company initially measures lease liabilities at the beginning of the lease term
based on the present value of the unpaid lease payments on that date. When calculating the present value of
lease payments, the company uses the implicit interest rate of the lease as the discount rate. If the implicit
interest rate of the lease cannot be determined, the incremental borrowing rate is used as the discount rate.
Lease payments refer to the payments made by the company to the lessor related to the right to use the leased
asset during the lease term, including:
Fixed payment amount and substantial fixed payment amount. If there is a lease incentive, the relevant amount
of the lease incentive shall be deducted;
Variable lease payments that depend on an index or ratio;
The Company reasonably determines the exercise price of the purchase option to be exercised;
The lease term reflects the amount to be paid for exercising the option to terminate the lease if the company
will exercise the option to terminate the lease;
The estimated amount payable based on the residual value of the guarantee provided by the company.
After the beginning date of the lease term, the company calculates the interest expense of the lease liability for
each period of the lease term at a fixed periodic interest rate, and includes it in the current profit and loss or
related asset costs.
After the beginning date of the lease term, if the following circumstances occur, the company remeasures the
lease liability and adjusts the corresponding right to use assets. If the book value of the right to use assets has
been reduced to zero, but the lease liability still needs to be further reduced, the company will record the
difference into the current profit and loss:
If the lease term changes or the evaluation result of the purchase option changes, the company remeasures the
lease liability based on the present value of the changed lease payments and the revised discount rate;
If there is a change in the expected payable amount based on the guarantee residual value or the index or
proportion used to determine the lease payment amount, the company will remeasure the lease liability based on
the changed lease payment amount and the present value calculated at the original discount rate.
28.1.4 Short Term Leases
The Company chooses not to recognize the right to use assets and lease liabilities for short-term leases of some
factory buildings and some leased warehouses. "Short term lease" refers to a lease that has a lease term of no
more than 12 months and does not include a purchase option on the beginning date of the lease term. The
Company includes the lease payments for short-term leases in the current profit and loss or related asset costs
using the straight-line method during each period of the lease term.
28.1.5 Lease Changes
If a lease is changed and the following conditions are met simultaneously, the company will treat the lease
change as a separate lease for accounting purposes:
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The lease change expands the scope of the lease by increasing the right to use one or more leased assets;
The increased consideration is equivalent to the individual price for the majority of the expansion of the lease
scope adjusted according to the contract situation.
"If a lease change is not accounted for as a separate lease, on the effective date of the lease change, the company
will reallocate the consideration of the changed contract, redefine the lease term, and remeasure the lease
liability based on the present value of the changed lease payment amount and the revised discount rate.".
If the lease change results in a reduction in the lease scope or the lease term, the Company shall reduce the book
value of the right to use asset accordingly, and record the relevant gains or losses from partial or complete
termination of the lease into the current profit and loss. If other lease changes result in the remeasurement of
lease liabilities, the Company shall adjust the book value of the right to use assets accordingly.
28.1.6 Policy related rent concessions
The Group chooses to adopt the simplified method in the relevant treatment regulations for rent concessions
such as rent reduction and deferred payment that are directly caused by policies and are agreed between the
Group and the lessor on existing lease contracts, while meeting the following conditions:
(1) The lease consideration after the concession is reduced or substantially unchanged compared to that before
the concession;
(2) After comprehensive consideration of qualitative and quantitative factors, it is determined that there are no
significant changes in other terms and conditions of the lease.
The Company continues to calculate the interest expense of lease liabilities at the same discount rate as before
the concession and record it into the current profit and loss. It continues to accrue depreciation and other
subsequent measurements on the right to use assets using the same method as before the concession. In the
event of rent reduction or exemption, the Company will treat the reduced rent as a variable lease payment
amount. When the original rent payment obligation is relieved, such as reaching a concession agreement, the
relevant asset costs or expenses will be offset by the discounted amount at the undiscounted or pre concession
discount rate, and the lease liabilities will be adjusted accordingly; If the rent is deferred, the Company shall
offset the lease liabilities recognized in the previous period when actually paying the rent.
For short-term leases that adopt simplified treatment, the company continues to include the original contract
rent in the relevant asset costs or expenses using the same method as before concession. In the event of rent
reduction or exemption, the Company will treat the reduced rent as a variable lease payment amount to offset
the relevant asset costs or expenses during the reduction or exemption period; If the rent payment is delayed, the
Company will recognize the rent payable as payable during the original payment period, and offset the
previously recognized payable when the actual payment is made.
28.2 The Company as lessor
28.2.1 Spin-Off of Leases
If the contract includes both the leased and non leased parts, the company allocates the contract consideration in
accordance with the provisions of the income standards on transaction price allocation, and the basis of
allocation is the separate prices of the leased and non leased parts.
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28.2.2 Classification of leases
Leases that substantially transfer almost all the risks and rewards related to the ownership of the leased asset are
financial leases. Leases other than financing leases are operating leases.
28.2.2.1 The company records operating lease business as the lessor
During each period of the lease term, the Company adopts the straight-line method to recognize the lease
receipts from operating leases as rental income. The initial direct expenses incurred by the Company in
connection with operating leases are capitalized when incurred, amortized over the lease term on the same basis
as rental income recognition, and included in current profits and losses by stages.
The variable lease receipts obtained by the company related to operating leases that are not included in the lease
receipts are included in the current profit and loss when actually incurred.
28.2.3 Lease Changes
If there is a change in an operating lease, the company will treat it as a new lease for accounting purposes from
the effective date of the change. The amount of advance receipts or receivable lease receipts related to the lease
before the change is considered as the amount of receipts for the new lease.
28.2.4 Policy related rent concessions
The Group chooses to adopt the simplified method in the relevant treatment regulations for rent concessions
such as rent reduction, deferred payment, etc. that are directly caused by policies and are agreed between the
lessee and the lessor on existing lease contracts, while meeting the following conditions:
(1) The lease consideration after the concession is reduced or substantially unchanged compared to that before
the concession;
(2) After comprehensive consideration of qualitative and quantitative factors, it is determined that there are no
significant changes in other terms and conditions of the lease.
For operating leases under the Company's own property lease contracts, the Company continues to recognize
the original contract rent as lease income using the same method as before the concession. In the event of rent
reduction or exemption, the Company will treat the reduced rent as a variable lease payment amount and offset
the lease income during the reduction or exemption period; If the rent collection is delayed, the Company
recognizes the rent receivable during the original collection period as receivables, and offsets the previously
recognized receivables when actually received.
29. Changes in important accounting policies and accounting estimates, and correction of previous errors
29.1 Significant accounting policy changes
Accounting Standards for Business Enterprises Interpretation No. 15
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
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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 retrospective adjustment method for accounting treatment and restates the financial
statements of comparable years.
29.2 Changes in important accounting estimates
Contents and reasons of changes in Time point of
Approval procedure Remark
accounting estimates application
In order to reflect the Group's
financial position and operating
As of December 31, 2022, the
results more objectively and fairly,
change in accounting
the Group changed the accounting
It was reviewed and approved at estimates caused the
estimate of the depreciation period
the 9th meeting (interim accumulated depreciation of
of some fixed assets, changed the
meeting) of the Eighth Board of January 1, 2022 fixed assets to be accrued by
depreciation period of electronic
Directors on December 31, RMB 1,412,095.44, which
equipment and other equipment
2021. caused the net profit of this
from 8 years to 5 years, kept the
year to decrease by RMB
residual value rate unchanged, and
1,412,095.44.
changed the annual depreciation
rate from 12% to 19.2%.
29.3 Correction of previous errors
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, Accounting Estimates, and Correction of Errors", the Company has
corrected relevant errors and restated the 2021 consolidated financial statements. The relevant corrections are as
follows:
(1) Classification of current assets (liabilities) and non current assets (liabilities)
In 2021, an investment in a partnership enterprise will be included in other non current financial assets.
After self examination and review, the investment is an asset that will mature and be recovered within one year.
According to the Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements,
it will be reclassified from other non current financial assets to trading financial assets.
In 2021, the payable refunds due within one year will be included in the estimated liabilities. After self
inspection and review, they will be reclassified from the estimated liabilities to other current liabilities in
accordance with the Accounting Standards for Business Enterprises No. 30 - Presentation of Financial
Statements.
In 2021, a leased property was included in fixed assets. According to the provisions of the Accounting
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Standards for Business Enterprises No. 3 - Investment Real Estate, it was reclassified from fixed assets to
investment real estate through self inspection and review.
(2) Raw materials in transit are not provisionally recorded
At the end of 2021, the raw materials in transit were not provisionally estimated and recorded in the
account. After self inspection and review, the inventory and accounts payable were increased in accordance
with the Accounting Standards for Business Enterprises No. 1 - Inventory.
(3) Product cost allocation for different grades of the same product
After self inspection and review, there are differences in the cost allocation of different grades of the same
product by the Group. In accordance with relevant regulations such as the Accounting Standards for Business
Enterprises No. 1 - Inventories and the Enterprise Product Cost Accounting System (Trial), the Group
recalculates the cost of products of different grades of the same product, adjusts the cost of inventory sold, and
accordingly adjusts the asset impairment losses and operating costs in the 2021 consolidated financial
statements.
The main effects of the above change in accounting policy and correction of prior period errors on the
consolidated financial statements for 2021 are as follows:
Unit: RMB
Change in
Change in accounting
accounting
Amount of change Amount of correction of policy/prior period
Financial Statement Item Name policy/prior period
in accounting policy prior period errors Amount after correction
Amount before
of errors
correction of errors
1、 Balance Sheet Items
(1) Assets
Financial assets held for trading 586,540,735.16 - 30,650,943.40 617,191,678.56
Other non-current financial assets 30,650,943.40 - (30,650,943.40) -
Inventory 667,461,447.03 - 75,940,410.71 743,401,857.74
Investment properties 106,217,779.76 - 19,034,071.67 125,251,851.43
Fixed Assets 2,424,741,252.86 (9,048,192.38) (19,034,071.67) 2,396,658,988.81
Total Assets 5,496,647,107.83 (9,048,192.38) 75,940,410.71 5,563,539,326.16
(2) Liabilities
Accounts Payable 283,643,842.23 - 75,940,410.71 359,584,252.94
Other current liabilities 27,523,903.58 - 30,741,055.00 58,264,958.58
Projected liabilities 30,741,055.00 - (30,741,055.00) -
Total liabilities 1,532,817,860.76 - 75,940,410.71 1,608,758,271.47
(3) Shareholders' Equity
Undistributed earnings 130,746,251.74 (5,428,915.43) - 125,317,336.31
Total equity attributable to
owners of the parent company 2,816,795,889.89 (5,428,915.43) - 2,811,366,974.46
Minority interests 1,147,033,357.18 (3,619,276.95) - 1,143,414,080.23
Total shareholders' equity 3,963,829,247.07 (9,048,192.38) - 3,954,781,054.69
2、Income Statement Items
Operating income 2,293,747,892.06 36,313,788.94 - 2,330,061,681.00
Operating Costs 1,908,519,413.28 45,361,981.32 (46,887,730.85) 1,906,993,663.75
Impairment gains (losses) on
assets (83,508,720.33) - (46,887,730.85) (130,396,451.18)
Net Profit 75,114,666.20 (9,048,192.38) - 66,066,473.82
Net profit attributable to
shareholders of the parent 61,162,384.25 (5,428,915.43) - 55,733,468.82
company
Minority interests in profit or
loss 13,952,281.95 (3,619,276.95) - 10,333,005.00
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VI. Taxes
1. Main tax categories and tax rates
Tax category Tax basis Tax rate
The output tax for domestic sales is
The balance after deducting the deductible input calculated according to 13%, 9%, 6%
tax from the output tax; The tax calculation and 5% of the sales amount calculated
VAT
method of "exemption, offset and refund" is according to relevant tax regulations, and
applied to sales of export products the tax rebate rate for export products is
13%
Urban maintenance and
Payable turnover tax 7%
construction tax
Business income tax Taxable amount of income 25%,20%,15%,8.25%
Surcharge for education Payable turnover tax 3%
Surcharge for local education Payable turnover tax 2%
Residual value or rental income after deducting
Property tax 30% from the original value of property at one 1.2% or12%
time
The disclosure statement if there are taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
The Company 0.25
Shenzhen Shenfang Property Management Co., Ltd. 0.25
Shenzhen Shengjinlian Technology Co., Ltd. 0.25
Shenzhen Beauty Century Garment Co., Ltd. 20%(Note 1)
Shenzhen Lisi Industrial Co., Ltd. 20%(Note 1)
Shenzhen Shenfang Sungang Property Management Co., Ltd. 20%(Note 1)
Shenzhen Huaqiang Hotel 20%(Note 1)
Shengtou（HK）Co., Ltd. 8.25%(Note 2)
Shenzhen SAPO Photoelectric Co., Ltd. 15%(Note 3)
Note 1: See "Tax Preferences" in Notes (VI), 2 (2) for details.
Note 2: According to the Tax Ordinance of Hong Kong, Hong Kong companies applied the two-tier
system of profits tax in 2018, and the first profit of HK$ 2 million will be calculated and paid at 8.25%, and the
profits generated thereafter will be calculated at 16.5%.
Note 3: See "Tax Preference" in Notes (VI), 2(1) for details.
2. Tax preference
(1) In 2019 and 2022, SAPO Photoelectric, a subsidiary of the Company, was jointly recognized as a high-
tech enterprise by Shenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau and
Shenzhen Tax Service, State Taxation Administration, respectively, with a certification period of 3 years, and
the certificate numbers of GR201944205666 and GR202244204504 respectively. It shall apply the preferential
tax policies for high-tech enterprises within three years after it is recognized as a high-tech enterprise, and pay
enterprise income tax at the rate of 15% after being filed by the competent tax bureau.
(2) According to the Law of the People's Republic of China on Enterprise Income Tax issued on March 16,
2007 and its revised version, the subsidiaries of the Company, Shenzhen Meibainian Clothing Co., Ltd.,
Shenzhen Huaqiang Hotel Clothing Co., Ltd., Shenzhen Lisi Industrial Development Co., Ltd. and Shenzhen
Shenfang Sungang Property Management Co., Ltd., are qualified small and low-profit enterprises. According
to the Notice on Implementing Inclusive Tax Relief Policies for Small and Micro Enterprises (CS [2019]
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No.13), Announcement on Implementing Preferential Income Tax Policies for Small and Micro Enterprises and
Individual Business (Announcement No.12 of the Ministry of Finance and the State Taxation Administration in
2021) and Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro
Enterprises (Announcement No.13 of the Ministry of Finance and the State Taxation Administration in 2022),
for the part of the taxable income of small and low-profit enterprises that does not exceed RMB 1 million this
year, it will be included in the taxable income at a reduced rate of 12.5%, and the enterprise income tax will be
paid at a rate of 20% (2021: at a reduced rate of 12.5% and at a tax rate of 20%); For the part of taxable income
exceeding RMB 1 million but not exceeding RMB 3 million this year, it will be included in taxable income at a
reduced rate of 25%, and enterprise income tax will be paid at a rate of 20% (2021: at a reduced rate of 50%,
and a tax rate of 20%).
(3) According to the relevant provisions of the Notice of State Taxation Administration of the General
Administration of Customs of the Ministry of Finance on Supporting the Development of New Display Device
Industry (CGS [2021] No.19), SAPO Photoelectric, a subsidiary of the Company, is a manufacturer of key raw
materials and components in the upstream of the new display device industry, such as color filter films and
polarizers, which are in line with the independent development plan of the domestic industry. From January 1,
2021 to December 31, 2030, it enjoys the policy of importing self-used productive raw materials and
consumables that cannot be produced in China, and is exempt from import duties.
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 3,980.56 792.64
RMB 3,980.56 792.64
Bank deposit( Note 1) 874,795,302.32 302,472,035.96
RMB 853,053,825.65 279,304,631.88
USD 17,490,003.77 21,657,073.19
Yen 4,200,382.59 851,136.87
HKD 51,090.31 659,194.02
Other monetary capital(Note 2)： 116,990,685.31 -
RMB 116,929,425.84 -
USD 60,972.46 -
Yen 287.01 -
Total 991,789,968.19 302,472,828.60
Including : The total amount of deposit abroad 6,009,898.07
Note 1: Bank deposits include interest on current deposits of RMB 324,448.42.
Note 2: On December 31, 2022, the Company's other monetary funds included the frozen account of RMB
1,270,758.22, and the principal and interest of time deposit certificates due for more than three months from
the date of purchase of RMB 115,719,927.09.
2. Transactional financial assets
In RMB
Balance at the end of this
Items Balance at the end of last year
year
Financial assets measured at fair value and whose changes
319,605,448.44 617,191,678.56
are included in the current profits and losses
Including: money funds and structured deposits 319,605,448.44 617,191,678.56
Partnership Investment - 30,650,943.40
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Total 319,605,448.44 617,191,678.56
3. Notes receivable
(1) Notes receivable listed by category
In RMB
Balance at the end of this
Items Balance at the end of last year
year
Bank acceptance 74,619,100.26 77,296,787.26
Commercial acceptance 72,646,093.02
Total 74,619,100.26 149,942,880.28
(2) On December 31, 2022, the Group had no pledged bills receivable.
(3) On December 31, 2022, the notes receivable that have been endorsed or discounted by the Group and have
not yet matured on the balance sheet date.
In RMB
Amount to be derecognized Amount not derecognized at the end of
Items
at the end of this year this year
Bank acceptance - 48,387,401.67
(4) Classified disclosure by credit loss provision accrual method
In RMB
Balance at the end of this year Balance at the end of last year
Credit loss Credit loss
Book balance Book balance
provision provision
Accr Accr
Category Prop ual Book Prop ual
Book value
ortio prop value ortio Amoun prop
Amount Amount Amount
n ortio n t ortio
(%) n (%) n
(%) (%)
Credit loss
provision - - - - - - - - - -
accrued by item
Credit loss
provision 74,619,100. 100. 74,619,10 150,307,93 100. 365,05 149,942,88
- - 0.24
accrued by 26 00 0.26 6.02 00 5.74 0.28
portfolio
Including:
74,619,100. 100. 74,619,10 77,296,787 51.4 77,296,787.
Bank - - - -
26 00 0.26 .26 3 26
acceptance bill
Commer
73,011,148 48.5 365,05 72,646,093.
cial acceptance - - - - - 0.50
.76 7 5.74 02
bill
74,619,100. 100. 74,619,10 150,307,93 100. 365,05 149,942,88
Total - -
26 00 0.26 6.02 00 5.74 0.28
(5) Credit loss provision
In RMB
Balance at the Amount of change this year
Balance at the
Category beginning of Recovery or Write-off or Other
Accrual end of this year
this year reversal cancellation changes
Commercial acceptance 365,055.74 (365,055.74) - - 1,078,834.61
(6) On December 31, 2022, the Group had no bills receivable actually written off.
4. Account receivable
(1)Disclosure by aging
In RMB
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Balance at the end of this year Balance at the end of last year
Aging Account Credit loss Proportion(% Account Credit loss
Proportion(%)
receivable provision ) receivable provision
Within 1
670,780,300.16 34,261,574.63 5.11 502,894,801.73 22,896,093.16 4.55
year
1-2 years 614,645.76 549,901.36 89.47 5,702.29 5,702.29 100.00
2-3years - - - 676,153.40 676,153.40 100.00
3 年以上 12,883,224.42 12,883,224.42 100.00 12,532,199.89 12,532,199.89 100.00
Total 684,278,170.34 47,694,700.41 516,108,857.31 36,110,148.74
(2) Classified disclosure by credit loss provision accrual method
Credit loss provision by item: if there is evidence that the credit risk of a single receivable is relatively high, credit loss
provision shall be accrued separately for the receivable.
Credit loss provision is made according to the portfolio of credit risk characteristics: except for receivables
with credit impairment loss, the Group uses impairment matrix to evaluate the expected credit loss of accounts
receivable formed by operating income on the basis of portfolio. According to the risk characteristics, the Group
divides customers into Portfolio 1 and Portfolio 2, which respectively involve customers with the same risk
characteristics.
On December 31, 2022, the credit risk and credit loss provision of the accounts receivable of the above
portfolio were as follows:
In RMB
Balance at the end of this year
Book balance Credit loss provision
Category Proportion Accrual Book value
Amount Amount
(%) proportion (%)
Credit loss provision accrued 38.06
74,770,706.00 10.93 28,457,163.32 46,313,542.68
by item
Credit loss provision accrued 3.16
609,507,464.34 89.07 19,237,537.09 590,269,927.25
by portfolio
Including: Portfolio 1 591,168,603.26 86.39 18,295,605.12 3.10 572,872,998.14
Portfolio 2 18,338,861.08 2.68 941,931.97 5.14 17,396,929.11
Total 684,278,170.34 100.00 47,694,700.41 636,583,469.93
On December 31, 2022, the credit risk and credit loss provision of the accounts receivable of Portfolio 1
were as follows:
In RMB
Balance at the end of this year
Category Expected average loss Credit loss
Book balance Book value
rate (%) provision
During the credit period 2.48 561,796,994.67 13,939,072.35 547,857,922.32
1-30 days overdue 5.77 24,107,786.48 1,390,374.05 22,717,412.43
31-60 days overdue 44.73 4,134,014.59 1,849,280.58 2,284,734.01
61-90 days overdue 96.66 387,551.54 374,622.16 12,929.38
Overdue for more than 90 days 100.00 742,255.98 742,255.98 -
Total 591,168,603.26 18,295,605.12 572,872,998.14
On December 31, 2022, the credit risk and credit loss provision of the accounts receivable of Portfolio 2
were as follows:
In RMB
Balance at the end of this year
Aging Expected average loss Credit loss
Book balance Book value
rate (%) provision
Within 1 year 5.11 18,266,674.08 934,207.96 17,332,466.12
1-2 years 10.70 72,187.00 7,724.01 64,462.99
Total 18,338,861.08 941,931.97 17,396,929.11
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(3) Credit loss provision
In RMB
Expected credit loss for the whole duration
Items
Year-beginning balance 36,110,148.74
Accrual this year 11,584,551.67
Reversal this year -
Write-off this year -
Other changes -
Year-end balance 47,694,700.41
There is no important situation in which the amount of credit loss provision is recovered or reversed this year.
(4) No actual write-off of accounts receivable this year
(5) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Name Balance in year-end Proportion(%) Bad debt provision
Client 1 128,256,413.42 18.74 3,182,244.56
Client 2 77,700,212.51 11.36 2,058,523.74
Client 3 62,781,126.25 9.17 1,557,699.08
Client 4 47,899,911.28 7.00 1,188,472.59
Client 5 47,461,093.38 6.93 1,242,593.02
Total 364,098,756.84 53.21 9,229,532.99
(6) On December 31, 2022, the Group had no accounts receivable that were derecognized due to the
transfer of financial assets.
5.Receivable financing
In RMB
Items Balance at the end of this year Balance at the end of last year
Commercial acceptance 54,413,796.91 21,474,101.07
On December 31, 2022, the endorsed or discounted unexpired bank acceptance bills that the Group derecognized amounted to
RMB 54,995,349.12. For the bank acceptance bills of large state-owned commercial banks with high credit
rating and listed national joint-stock commercial banks, the Group believes that after the endorsement or
discount of such bank acceptance bills, the related main risks and rewards have been transferred to the
counterparty, and such endorsed or discounted unexpired bank acceptance bills should be derecognized.
The Group believes that the acceptance bank credit rating of the bank acceptance bills held by it is high,
with no significant credit risk, therefore no credit loss provision has been made.
6.Prepayments
(1) List by aging analysis:
In RMB
Balance at the end of this year Balance at the end of last year
Aging Amount Proportion % Amount Proportion %
Within 1 year 16,690,766.68 90.75 15,157,623.27 98.38
1-2 years 1,700,677.99 9.25 248,996.26 1.62
Total 18,391,444.67 100.00 15,406,619.53 100.00
On December 31, 2022, the Group had no prepayments with an age of more than one year and a significant
amount.
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深圳市纺织(集团)股份有限公司 2022 年年度报告全文
(2) Prepayments of the top five ending balances by prepayment object
The total amount of the top five year-end balances collected by prepayment objects is RMB 13,880,315.32,
accounting for 75.47% of the total year-end balances of prepayments.
7. Other receivables
7.1 Summary of other receivables
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Other receivable 10,585,975.38 140,185,750.40
7.2 Other receivables
(1) Disclosure by age
In RMB
Balance at the end of this year
Aging
Other receivables Credit loss provision Accrual proportion (%)
Within 1 year 9,677,505.85 494,588.28 5.11
1-2 years 822,689.31 88,027.76 10.70
2-3 years 329,051.11 110,862.33 33.69
Over 3 years 18,154,298.53 17,704,091.05 97.52
Total 28,983,544.80 18,397,569.42
(2) Disclosure by payment nature
In RMB
Book balance at the end Book balance at the end
Payment nature
of this year of last year
Current payment 16,330,801.03 16,402,902.33
Funds subject to freeze 6,559,327.26
Deposit and security deposit 2,801,300.29 144,954,822.31
Export rebate 1,023,715.60 1,698,919.82
Reserve funds and employee loans 580,028.97 293,128.97
Others 1,688,371.65 1,834,489.23
Total 28,983,544.80 165,184,262.66
(3) Accrual of credit loss provision
In RMB
Year-end amount
Stage Expected average loss rate
Book balance Loss provision Book value
(%)
Other receivables for
which credit loss
provision is made
according to the
63.48 28,983,544.80 18,397,569.42 10,585,975.38
combination of credit
risk characteristics
（4）Changes in credit loss provisions for other receivable：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit Expected credit losses for the entire
Bad Debt Reserves Total
losses over the loss over life (no duration (credit
next 12 months credit 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
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深圳市纺织(集团)股份有限公司 2022 年年度报告全文
——Transfer to stage II (40,256.64) 40,256.64 - -
——Transfer to stage III - - - -
-- Reversal to the II stage - - - -
-- Reversal to the I stage - - - -
Provision in Current Year - 158,633.45 500,835.86 659,469.31
Reversal in Current Year (7,260,412.15) - - (7,260,412.15)
Conversion in Current Year - - - -
Write off in Current Year - - - -
Other change - - - -
Balance as at 31 Dec. 2022 7,795,257.07 - 17,203,255.19 24,998,512.26
(5) No actual write-off of other accounts receivable this year
(6) Top five companies with year-end balance of other receivables collected by the defaulting party
InRMB
Proportion of
total year-end
balance of
Year-end balance Year-end balance of
Other receivables Payment nature Aging other
of other payables credit loss provision
receivables (%)
Receivable
external
Total other receivables of the Within 1
transactions,
top five balances on 21,866,667.23 year, more 75.45 14,616,189.97
Funds subject to
December 31, 2022 than 3 years
freeze，export
tax rebates, etc
8. Inventories
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 291,062,812.80 48,809,720.50 242,253,092.30 425,919,281.58 26,335,509.94 399,583,771.64
Processing
258,881,779.59 41,882,202.00 216,999,577.59 281,735,104.85 34,298,745.28 247,436,359.57
products
Semi-finished 183,723,885.96 92,381,073.63 91,342,812.33 172,832,703.08 83,668,700.76 89,164,002.32
Commissioned 7,852,166.55
9,016,668.25 1,164,501.70 7,838,404.74 620,680.53 7,217,724.21
materials
Total 742,685,146.60 184,237,497.83 558,447,648.77 888,325,494.25 144,923,636.51 743,401,857.74
Note: The book balance of polarizer inventory is RMB 721,282,838.15.
（2）Inventory falling price reserves
In RMB
Increased in current period Decreased in current period
Items Opening balance Reversed Closing balance
Accrual Write-off Other
or
159
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
collected
amount
Raw 33,104,645.59 - 10,630,435.03 - 48,809,720.50
26,335,509.94
materials
Processing 59,472,861.14 - 51,889,404.42 - 41,882,202.00
34,298,745.28
products
Semi-finished 83,668,700.76 90,584,694.67 - 81,872,321.80 - 92,381,073.63
Commissione 543,821.17 - - - 1,164,501.70
620,680.53
d materials
Total 144,923,636.51 183,706,022.57 - 144,392,161.25 - 184,237,497.83
(3) On December 31, 2022, there was no amount in the inventory balance for guarantee and no amount
for capitalization of borrowing costs.
9. Other current assets
In RMB
Balance at the end of this Balance at the end of last
Items
year year
VAT to be deducted and input tax to be certified 26,077,404.45 860,153.70
Advance payment of income tax 11,654.12 57,448.91
Receivable return cost 43,446,472.67 28,585,749.81
Total 69,535,531.24 29,503,352.42
10. Long-term equity investment
In RMB
Increase /decrease
Profits and Closing
Cash
Addi Decr losses on Withdra balance
bonus
tiona ease investment Other Change wal of of
Opening or Closing
Investees l in s compre s in impair Othe impair
balance profits balance
inves inve Recognize hensive other ment r ment
announ
tmen stme d under the income equity provisio provisi
ced to
t nt equity n on
issue
method
I. Joint ventures
Shenzhen Guanhua - - - - - 129,506,27 -
128,214,22 1,292,045.
Printing & Dyeing 1.00 - 1.76
5.54 22
Co., Ltd.
128,214,22 1,292,045. - - - - - 129,506,27 -
Subtotal 1.00 -
5.54 22 1.76
2. Affiliated
Company
Shenzhen - - 133,593.58 - - - - - 3,105,796.5 -
Changlianfa 2,972,202.9 5
Printing & dyeing 7
Company
- - (117,999.6 151,869 - - - - 1,869,767.4 -
Hongkong Yehui 5) .82 3
1,835,897.2
International Co., 6
Ltd.
4,808,100.2 - - 15,593.93 151,869 - - - - 4,975,563.9 -
Subtotal
3 .82 8
133,022,32 - 1,307,639. 151,869 - - - - 134,481,83 -
Total 1.00
5.77 15 .82 5.74
160
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11. Other equity instruments investment
(1) Investment in other equity instruments
In RMB
Balance at the end of Balance at the end of
Items
this year last year
Financial assets designated as fair value and whose changes are included in
167,678,283.27 186,033,829.72
other comprehensive income
(2) Investment in non-transactional equity instruments
In RMB
Amount
Reasons for
transferred
Dividend Reason designated as transferring
from other
income being measured at fair from other
Cumulative comprehensive
Items recognized value and change comprehensive
gain/loss income to
this year being included in other income to
retained
comprehensive income retained income
income this
this year
year
Union Development Co., Ltd. 208,000.00 123,153,939.39 - 本公司计划长期持有 不适用
Shenzhen Dailishi Underwear
1,037,735.85 21,077,143.74 - 本公司计划长期持有 不适用
Co., Ltd.
Shenzhen South Textile Co.,
1,018,391.82 14,559,440.88 - 本公司计划长期持有 不适用
Ltd.
Shenzhen Xinfang Knitting
354,000.00 1,703,903.00 - 本公司计划长期持有 不适用
Co., Ltd.
Jintian Industry （ Group ）
- (14,831,681.50) - 本公司计划长期持有 不适用
Co., Ltd.
Total 2,618,127.67 145,662,745.51 -
12. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building
I. Original price
1. Balance at period-beginning 297,505,157.93
2.Increase in the current period 30,623,657.48
(1) Transferred from construction in progress 1,689,997.88
(2)Transferred from Fixed assets 28,933,659.60
3.Decreased amount of the period -
（1）Dispose -
（2）Other out -
4. Balance at period-end 328,128,815.41
II.Accumulated amortization
1.Opening balance 172,253,306.50
2.Increased amount of the period 29,559,674.15
(1) Withdrawal 8,861,091.64
(2)Transferred from Fixed assets 20,698,582.51
3.Decreased amount of the period -
（1）Dispose -
（2）Other out -
4. Balance at period-end 201,812,980.65
III. Impairment provision
1. Balance at period-beginning -
161
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Items House, Building
2.Increased amount of the period -
(1) Withdrawal -
3.Decreased amount of the period -
（1）Dispose -
4. Balance at period-end -
IV. Book value
1.Book value at period -end 126,315,834.76
2.Book value at period-beginning 125,251,851.43
（2）Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants due to
Houses and Building 8,400,885.28
historical reasons
13. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 2,240,221,656.36 2,396,658,988.81
(1) List of fixed assets
In RMB
Houses & Machinery Transportation Other
Items Total
buildings equipment s equipment
I. Original price
1.Opening balance 770,999,905.53 2,541,646,415.51 15,278,991.67 50,152,759.25 3,378,078,071.96
2.Increased amount of the 643,725.43 115,612,867.39 941,176.78 1,264,484.92 118,462,254.52
period
(1) Purchase 643,725.43 38,964,186.86 384,008.63 1,049,993.67 41,041,914.59
(2) Transferred from c - 76,648,680.53 557,168.15 214,491.25 77,420,339.93
onstruction in progress
3.Decreased amount of the 28,933,659.60 1,388,155.99 345,141.19 933,732.47 31,600,689.25
period
（1）Disposal - 1,388,155.99 345,141.19 933,732.47 2,667,029.65
(2)Transferred from 28,933,659.60 - - - 28,933,659.60
Real estate investment
4. Balance at period-end 742,709,971.36 2,655,871,126.91 15,875,027.26 50,483,511.70 3,464,939,637.23
II. Accumulated depreciation
1.Opening balance 168,343,175.55 776,497,359.55 4,361,783.39 25,822,442.07 975,024,760.56
2.Increased amount of the 25,546,276.33 211,016,207.09 1,840,818.70 9,297,706.74 247,701,008.86
period
(1) Withdrawal 25,546,276.33 211,016,207.09 1,840,818.70 9,297,706.74 247,701,008.86
3.Decreased amount of the 20,698,582.51 1,310,146.73 331,335.54 896,720.41 23,236,785.19
period
（1）Disposal - 1,310,146.73 331,335.54 896,720.41 2,538,202.68
(2)Transferred from 20,698,582.51 - - - 20,698,582.51
Real estate investment
4.Closing balance 173,190,869.37 986,203,419.91 5,871,266.55 34,223,428.40 1,199,488,984.23
III. Impairment provision
1.Opening balance - 6,361,553.37 - 32,769.22 6,394,322.59
2.Increase in the reporting - 18,759,054.84 - 108,388.43 18,867,443.27
period
162
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（1）Withdrawal - 18,759,054.84 - 108,388.43 18,867,443.27
3.Decrease in - - - 32,769.22 32,769.22
the reporting period
（1）Disposal - - - 32,769.22 32,769.22
4. Closing balance - 25,120,608.21 - 108,388.43 25,228,996.64
IV. Book value
1.Book value of the period- 569,519,101.99 1,644,547,098.79 10,003,760.71 16,151,694.87 2,240,221,656.36
end
2.Book value of the period-
602,656,729.98 1,758,787,502.59 10,917,208.28 24,297,547.96 2,396,658,988.81
begin
(2) Fixed assets without certificate of title completed
In RMB
Items Book Value Reason
Unable to apply for warrants due to
Houses and Building 11,647,880.88
historical reasons
(3) Mortgaged and secured fixed assets
As of December 31, 2022, the Group's fixed assets mortgaged by bank loans are detailed in Notes (VII), 56
"Assets with restricted ownership or use right":
14. Construction in progress
In RMB
Items Year-end balance in this year Year-beginning balance in last year
Construction in progress 38,061,619.60 71,482,031.08
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Installation of
machines and 38,061,619.60 - 38,061,619.60 71,482,031.08 -- 71,482,031.08
equipment
15. Right to use assets
In RMB
Items Houses and Building
I. Original price
1.Opening balance 13,762,176.74
2.Increased amount of the period 15,151,871.09
(1)Newly increased 15,151,871.09
3.Decreased amount of the period -
4. Balance at period-end 28,914,047.83
II. Accumulated depreciation
1.Opening balance 4,540,987.37
2.Increased amount of the period 9,007,666.58
163
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
(1) Withdrawal 9,007,666.58
3.Decrease in the reporting period -
4.Closing balance 13,548,653.95
III. Impairment provision
1.Opening balance -
2.Increase in the reporting period -
（1）Withdrawal -
3.Decrease in the reporting period -
4. Closing balance -
IV. Book value
1.Book value of the period-end 15,365,393.88
2.Book value of the period-begin 9,221,189.37
The Group has leased a number of assets, including houses and buildings, with a lease term of 1 to 10
years. The simplified short-term lease fee included in the current profits and losses this year is RMB 653,461.86.
The total cash outflow related to leasing this year is RMB 9,798,034.29.
16. Intangible assets
(1) Information
In RMB
Items Land use right Software Patent right Total
I. Original price
1. Balance at period-beginning 48,258,239.00 21,696,241.02 11,825,200.00 81,779,680.02
2.Increase in the current period - 640,305.31 - 640,305.31
(1) Purchase - 640,305.31 - 640,305.31
3.Decreased amount of the
- - - -
period
4. Balance at period-end 48,258,239.00 22,336,546.33 11,825,200.00 82,419,985.33
II.Accumulated amortization
1. Balance at period-beginning 14,382,583.03 6,936,736.99 11,825,200.00 33,144,520.02
2. Increase in the current period 891,565.32 4,191,328.04 - 5,082,893.36
(1) Withdrawal 891,565.32 4,191,328.04 - 5,082,893.36
3.Decreased amount of the - - -
-
period
4. Balance at period-end 15,274,148.35 11,128,065.03 11,825,200.00 38,227,413.38
III. Impairment provision
1. Balance at period-beginning - - - -
2. Increase in the current period - - - -
3.Decreased amount of the
- - - -
period
4. Balance at period-end - - - -
4. Book value
1.Book value at period -end 32,984,090.65 11,208,481.30 - 44,192,571.95
2.Book value at period-beginning 33,875,655.97 14,759,504.03 - 48,635,160.00
As of December 31, 2022, the Group's intangible assets mortgaged by bank loans are detailed in Notes
(VII), 56 "Assets with restricted ownership or use right".
17. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investee or matters that
Balance at the end Balance at the end
form goodwill Increase this year Decrease this year
of last year of this year
SAPO Photoelectric 9,614,758.55 - - 9,614,758.55
Shenzhen Beauty Century Garment 2,167,341.21 - - 2,167,341.21
164
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Co., Ltd.
Total 11,782,099.76 - - 11,782,099.76
(2) Goodwill impairment provision
InRMB
Name of the investee or matters that
Balance at the end Balance at the end
form goodwill Increase this year Decrease this year
of last year of this year
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
18. Long-term deferred expenses
In RMB
Balance at the Increased amount Amortized Other reduction Balance at the end
Items
end of last year this year amount this year amount of this year
Decoration and
facilities renovation 5,387,295.94 902,948.37 1,819,286.52 - 4,470,957.79
fee
19. Deferred income tax assets/Deferred income tax liabilities
(1) Uncompensated deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Credit loss provision 65,076,915.43 11,372,802.27 3,566,672.28 890,165.29
Asset impairment provision 206,115,717.20 30,917,357.58 2,200,110.43 550,027.61
Unrealized profit from internal
2,235,077.97 335,261.70 2,324,192.50 348,628.88
transactions
Employee compensation payable 9,397,730.55 2,143,607.14 7,679,100.00 1,919,775.00
Deferred income 116,768,810.33 17,515,321.55 - -
Deductible loss 90,052,078.73 13,397,964.96 - -
Changes in fair value of investment in
14,831,681.50 3,707,920.38 - -
other equity instruments
Total 504,478,011.71 79,390,235.58 15,770,075.21 3,708,596.78
According to the Group's profit forecast results for the future period, the Group believes that it is likely to
obtain sufficient taxable income in the future period to make use of the above deductible temporary differences
and deductible losses, so relevant deferred income tax assets are recognized.
(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
The difference between the initial
recognition cost of long-term equity 62,083,693.36 15,520,923.34 62,083,693.36 15,520,923.34
investment and tax basis
165
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Closing balance Opening balance
Deductible Deductible
Items Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in fair value of investment in
160,494,427.02 40,123,606.76 178,849,973.46 44,712,493.37
other equity instruments
Rent receivable allocation difference 7,584,635.96 1,896,158.99 5,636,976.78 1,409,244.20
Total 230,162,756.34 57,540,689.09 246,570,643.60 61,642,660.91
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off Trade-off between
End balance of Opening balance of
between the the deferred
deferred income tax deferred income tax
Items deferred income income tax assets
assets or liabilities assets or liabilities
tax assets and and liabilities at
after off-set after off-set
liabilities period-begin
Deferred income tax assets (9,566,421.29) 69,823,814.29 - 3,708,596.78
Deferred income tax liabilities (9,566,421.29) 47,974,267.80 - 61,642,660.91
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 5,742,636.02 151,027,647.77
Deductible loss 464,226,095.10 736,209,989.47
Total 469,968,731.12 887,237,637.24
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end
2024 79,132,962.34
2025 16,680,938.23
2026 128,597,715.91
2027 12,155,889.69
2028 22,463,907.95
2029 129,766,788.98
2030 75,427,892.00
Total 464,226,095.10
20 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book Vale Provision Book value Book balance Provision Book value
Items for for
devaluatio devaluation
n
Prepayment for
engineering and 16,792,930.20 16,792,930.20 28,769,782.86 28,769,782.86
equipment
Time deposit
certificate of more 30,030,410.96 30,030,410.96
than one year
166
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Investment funds to
25,760,086.27 25,760,086.27 25,760,086.27 25,760,086.27
be liquidated
Total 42,553,016.47 42,553,016.47 84,560,280.09 84,560,280.09
21. Short-term borrowings
In RMB
Items Balance in year-end Balance in year-begin
Credit borrowing 7,000,000.00
Bill Discounting - 37,575,113.83
Total 7,000,000.00 37,575,113.83
22.Notes payable
In RMB
Items Balance in year-end Balance in year-begin
Bank acceptance Bill - 16,682,324.12
23. Accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Payment for goods 304,916,368.65 327,118,334.45
Service charge 11,386,158.86 4,930,868.56
Localities 4,609,134.50 -
Subcontracting payment 3,970,214.14 1,183,793.09
Others 2,167,997.55 26,351,256.84
Total 327,049,873.70 359,584,252.94
On December 31, 2022, the Group had no significant accounts payable with an aging of more than one
year.
24.Advance account
In RMB
Items Balance in year-end Balance in year-begin
Rent and other 1,393,344.99 1,805,311.57
On December 31, 2022, the Group had no significant accounts payable with an aging of more than one
year.
25.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 4,274,109.40 68,955.21
26.Payable Employee wage
(1) List of Payroll payable
167
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
In RMB
Balance in year- Increase in this Payable in this period Balance in year-
Items
begin period end
Short-term compensation 59,719,860.24 239,147,775.14 237,927,202.48 60,940,432.90
Post-employment benefits -
- 16,628,824.21 16,628,824.21 -
defined contribution plans
Dismissal benefits - 754,873.42 528,861.42 226,012.00
Total 59,719,860.24 256,531,472.77 255,084,888.11 61,166,444.90
（2）Short-term remuneration
In RMB
Balance in year- Increase in this Decrease in this Balance in year-
Items
begin period period end
Wages, bonuses, allowances and
57,114,308.02 213,501,823.93 213,143,150.08 57,472,981.87
subsidies
Employee welfare - 8,628,459.80 8,599,274.36 29,185.44
Social insurance premiums - 4,003,804.93 4,003,804.93 -
Including：Medical insurance - 3,409,643.36 3,409,643.36 -
Maternity insurance - 250,609.98 250,609.98 -
Work injury insurance - 343,551.59 343,551.59 -
Public reserves for housing - 7,841,268.71 7,638,877.71 202,391.00
Union funds and staff education fee 2,605,552.22 5,172,417.77 4,542,095.40 3,235,874.59
Total 59,719,860.24 239,147,775.14 237,927,202.48 60,940,432.90
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
Basic old-age - 13,593,639.21 13,593,639.21 -
insurance premiums
Unemployment - 303,261.11 303,261.11 -
insurance
Annuity payment - 2,731,923.89 2,731,923.89 -
Total - 16,628,824.21 16,628,824.21 -
The Company participates in pension insurance and unemployment insurance plans established by
government agencies according to regulations, and according to the plans, the Company pays fees to these plans
according to the prescribed standards. In addition to the monthly deposit fees mentioned above, the company
will no longer bear any further payment obligations. The corresponding expenses are included in the current
profit and loss or the cost of related assets when incurred.
The Company shall pay RMB 13593639.21 to the pension insurance plan and RMB 303261.11 to the
unemployment insurance plan. As of December 31, 2022, the company had fully paid the pension and
unemployment insurance plan amounts payable during the reporting period.
27.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
168
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Enterprise Income tax 4,655,525.64 1,804,277.95
Individual Income tax 1,847,004.45 866,274.38
VAT 1,740,677.77 6,334,093.50
Other 654,104.65 195,981.26
Total 8,897,312.51 9,200,627.09
28.Other payable
(1) Other payables listed according to the payment nature
In RMB
Items Balance in year-end Balance in year-begin
Engineering equipment payment 83,337,092.31 91,213,156.89
Current payment 53,102,831.34 51,681,042.57
Deposit and security deposit 45,628,573.39 43,277,481.38
Others 15,276,958.33 15,145,740.51
Total 197,345,455.37 201,317,421.35
(2) Important other payables with an aging of more than 1 year
In RMB
Balance at the end of
Items Reasons for no payment or carry-over
this year
Beijing CEEDI Engineering & he final payment settlement of the project has not been
16,724,271.45
Technology Co., Ltd. completed
29. Non-current liabilities due within 1 year
In RMB
Items Balance at the end of this year Balance at the end of last year
Long-term loans due within one year 97,182,080.19 -
Lease liabilities due within one year 7,001,358.03 5,175,393.52
Total 104,183,438.22 5,175,393.52
30.Other current liabilities
In RMB
Balance at the end of this Balance at the end of last year
Items
year
Endorsed and unexpired acceptance bill 48,387,401.67 27,523,903.58
Return payable 44,558,340.11 30,741,055.00
Total 92,945,741.78 58,264,958.58
31. Long-term loans
(1) Classification of long-term loans
In RMB
Balance at the end of Interest rate Balance at the end of Interest rate
Items
this year interval last year interval
704,603,66 4.0 683,016,243
Guaranteed loan (note) 4.41%
5.19 6 .25
169
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
%
704,603,66 683,016,243
Subtotal
5.19 .25
Less: Long-term loans due within 97,182,080.
-
one year 19
Less: Long-term loans due after one 607,421,58 683,016,243
year 5.00 .25
Note: SAPO Photoelectric, a subsidiary of the Company, mortgaged its real estate rights such as the
factory building, and the Company and Hangzhou Jinjiang Group Co., Ltd. provided 60% and 40% joint
guarantee for the loan respectively.
32. Lease liabilities
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Lease liabilities 15,630,030.74 9,419,249.23
Subtotal 15,630,030.74 9,419,249.23
Less: Lease liabilities due within one year 7,001,358.03 5,175,393.52
Less: Lease liabilities due within one year 8,628,672.71 4,243,855.71
33. Deferred income
In RMB
Balance at the end Balance at the end Reason
Items Increase this year Decrease this year
of last year of this year
110,461,293.15 23,754,725.00 16,401,222.05 117,814,796.10 Received the
Government
government
subsidies
subsidie
Projects involving government subsidies:
In RMB
Amount of
non-
Amount of other Oth
Amount of new operating
Year-beginning income included in er
Items subsidies this income Year-end amount Asset-related/
amount this year chan
year included in Income-related
ges
this year
Production line
67,839,305.45 23,754,725.00 - 10,607,220.14 - 80,986,810.31 Asset-related
subsidy
Equipment
36,621,987.70 - - 5,794,001.91 - 30,827,985.79 Asset-related
subsidy
Material subsidy 6,000,000.00 - - - - 6,000,000.00 Income-related
Total 110,461,293.15 23,754,725.00 - 16,401,222.05 - 117,814,796.10
34.Stock capital
In RMB
Changed（+，-）
Year-beginning Capitaliza
Items Issuance of Bonus Balance in year-end
balance tion of Other Subtotal
new share shares
public
reserve
170
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Changed（+，-）
Year-beginning Capitaliza
Items Issuance of Bonus Balance in year-end
balance tion of Other Subtotal
new share shares
public
reserve
Total of capital
506,521,849.00 - - - - - 506,521,849.00
shares
35. Capital reserves
In RMB
Year-beginning balance Increase in the current Decrease in the current Year-end balance
Items
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
36. Other comprehensive income
In RMB
Amount of current period
Less:
Includ
ed in
other
compr
ehensi
ve
incom
e in
Year- Amount the
Amount of Amount of Year-end
Items beginning incurred previo Year-end
current current balance
balance before income us balance
period period
tax period
,
transfe
rred to
profit
or loss
in the
curren
t
period
I. Other
comprehensive
118,643,084 (18,355,546.4 (8,296,806.9 (10,058,739.4 108,584,344
income that cannot be - -
reclassified into profit .23 5) 9) 6) .77
or loss
1. Changes in fair
value of investment in 118,643,084 (18,355,546.4 (8,296,806.9 (10,058,739.4 108,584,344
- -
other equity .23 5) 9) 6) .77
instruments
II. Other
comprehensive
1,039,034.8 (119,093.40 1,012,264.5
income to be (145,863.68) - - (26,770.28)
reclassified into profit 2 ) 4
or loss
1. Changes in fair
(119,093.40 (178,640.10
value of receivables - (297,733.50) - - (178,640.10)
financing ) )
171
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
2. Translation
difference of foreign 1,039,034.8 1,190,904.6
151,869.82 - - 151,869.82 -
currency financial 2 4
statements
Total of other
119,682,119 (18,501,410.1 (8,296,806.9 (10,085,509.7 (119,093.40 109,596,609
comprehensive -
income .05 3) 9) 4) ) .31
37. Special reserves
In RMB
Year-beginning Increase in the current Decrease in the current Year-end balance
Items
balance period period
Statutory surplus
98,245,845.47 2,663,815.85 100,909,661.32
reserve
38. Retained profits
In RMB
Items current period previous period
Undistributed profit at the end of last year before
125,317,336.31 86,912,390.50
adjustment
Total undistributed profits adjusted at the
- -
beginning of the year
Adjusted undistributed profit at the beginning of
125,317,336.31 86,912,390.50
the year
Add: Net profit attributable to shareholders of
73,309,182.94 55,733,468.82
parent company this year
Other comprehensive income carried
- 1,042,493.21
forward to retained income
Less: Withdrawal of statutory surplus reserve 2,663,815.85 3,175,360.75
Distribution of common stock dividends
25,326,092.45 15,195,655.47
(note)
Year end undistributed profit 170,636,610.95 125,317,336.31
Note: According to the resolution of the General Meeting of Shareholders on May 19, 2022, the Company
distributed a cash dividend of RMB 0.5 (including tax) for every 10 shares, totally RMB 25,326,092.45
(including tax) based on the share capital of 506,521,849 shares as of December 31, 2021.
39. Operating income and operating cost
(1) Operating income and operating cost
InRMB
Amount incurred this year Amount incurred last year
Items
Income Cost Income Cost
Main business 2,802,203,439.94 2,373,407,000.36 2,302,304,418.84 1,898,721,579.26
Other business 35,784,824.42 598,896.07 27,757,262.16 8,272,084.49
Total 2,837,988,264.36 2,374,005,896.43 2,330,061,681.00 1,906,993,663.75
Note: Please refer to Note (V), 29.1 "Significant changes in accounting policies" for details of the Group's
disclosure related to trial sales.
(2) Main business classified by product
In RMB
Amount incurred this year Amount incurred last year
Product type
Main business income Main business cost Main business income Main business cost
172
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Amount incurred this year Amount incurred last year
Product type
Main business income Main business cost Main business income Main business cost
Polarizer sales 2,693,787,636.62 2,317,793,097.44 2,135,803,339.71 1,827,211,496.45
Property leasing and
80,168,785.00 22,508,188.92 111,568,500.55 22,996,155.29
management
Textile sales 28,247,018.32 33,105,714.00 54,932,578.58 48,513,927.52
Subtotal 2,802,203,439.94 2,373,407,000.36 2,302,304,418.84 1,898,721,579.26
(3) Main business classified by region
InRMB
Amount incurred this year Amount incurred last year
Main business region
Main business income Main business cost Main business income Main business cost
Domestic 2,686,847,406.83 2,278,271,215.01 2,048,182,283.94 1,682,912,318.63
Overseas 115,356,033.11 95,135,785.35 254,122,134.90 215,809,260.63
Subtotal 2,802,203,439.94 2,373,407,000.36 2,302,304,418.84 1,898,721,579.26
(4) Description of performance obligations
The Group's goods sales are mainly the production and sales of polarizer and textile-related goods. For goods
sold to customers, the Group recognizes income when the control of the goods is transferred, that is, when the
goods are delivered to the designated place of the other party and signed by the other party. Since the delivery of
goods to customers represents the right to unconditionally receive the contract consideration, the maturity of the
money only depends on the passage of time, so the Group recognizes a receivable when the goods are delivered to
professional customers. When the customer prepays the payment, the Group recognizes the transaction amount
received as a contractual liability until the goods are delivered to the customer.
The Group provides property and leasing services to customers, which is a performance obligation to be
fulfilled within a certain period of time. The Group recognizes income in the process of providing property and
leasing services.
(5) Description of allocation to remaining performance obligations
On December 31, 2022, the amount of contractual liabilities corresponding to the performance obligations
that the Group has signed but has not yet fulfilled or has not yet fully fulfilled is RMB 4,274,109.40, and the
income will be recognized when the customer obtains the control of the goods.
40. Taxes and surcharges
In RMB
Items Amount incurred this year Amount incurred last year
Property tax 5,213,976.28 5,826,834.91
Urban maintenance and construction tax 366,211.93 1,625,005.70
Surcharge for education 237,396.39 1,169,628.61
Other taxes 2,089,542.31 1,902,078.87
Total 7,907,126.91 10,523,548.09
41. Sales expenses
In RMB
Items Amount incurred this year Amount incurred last year
Employee compensation 18,560,229.96 18,266,837.81
Sales service charge 10,661,049.94 12,684,139.28
Business entertainment 2,214,489.62 1,256,926.46
Others 4,526,759.83 5,765,432.84
Total 35,962,529.35 37,973,336.39
173
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42. Management cost
In RMB
Items Amount incurred this year Amount incurred last year
Employee compensation 83,952,597.31 80,805,949.97
Depreciation cost 12,258,281.68 10,728,532.58
Professional service fee 7,197,534.84 8,120,482.28
Amortization of intangible assets 5,082,893.36 5,030,106.23
Property leasing and utilities 5,252,212.15 3,745,400.74
Business entertainment 1,557,382.87 1,754,789.06
Others 13,088,038.08 11,903,569.29
Total 128,388,940.29 122,088,830.15
43. R&D expenses
In RMB
Items Amount incurred this year Amount incurred last year
Employee compensation 16,349,423.75 15,697,764.59
Material consumption 58,840,560.48 83,197,051.56
Depreciation cost 3,518,432.27 3,326,098.79
Others 1,811,739.04 1,287,849.59
Total 80,520,155.54 103,508,764.53
44. Financial expenses
In RMB
Items Amount incurred this year Amount incurred last year
Interest expense (note) 31,131,112.38 24,113,442.39
Less: capitalized interest expense - 9,807,167.26
Less: interest income 8,327,248.75 1,655,853.59
Exchange difference (14,569,863.53) (20,976,430.83)
Handling fees and others 4,709,606.47 8,195,665.20
Total 12,943,606.57 (130,344.09)
Note: The interest expense on lease liabilities in 2022 is RMB 203482.85.
45. Other income
In RMB
Items Amount incurred in this year Amount incurred in last year
Transfer-in of deferred income 16,401,222.05 13,939,029.06
Industry development support funds
6,384,733.03 380,356.97
(Note 1)
Enterprise development support funds
2,062,888.38 5,272,800.00
(Note 2)
Tax subsidy 1,262,440.33 0.00
Others 238,927.10 51,193.30
Total 26,350,210.89 19,643,379.33
174
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Note 1: Industry development support funds mainly include subsidies for the first batch of key new material
insurance compensation projects of the Bureau of Industry and Information Technology in 2022, incentive
projects for industrial enterprises to expand production capacity in 2022, and subsidies for the 2022 Emerging
Industry Support Plan (New Materials) of the Bureau of Industry and Information Technology.
Note 2: The enterprise development support funds mainly include the incentive funds for enterprises with
harmonious labor relations in Pingshan District in 2020, the subsidy funds for improving the atmospheric
environment quality of Shenzhen Municipal Ecological Environment Bureau, and the "ten items" policy fund
subsidies for enterprises with warm hearts in Pingshan District in 2022.
46. Investment income
In RMB
Items Amount incurred this year Amount incurred last year
Long-term equity investment income calculated by
1,307,639.15 33,984.66
equity method
Investment income from disposal of long-term
- 20,779.93
equity investment
Investment income of transactional financial assets
15,457,585.05 17,407,221.99
during the holding period
Dividend income from investment in other equity
2,618,127.67 2,551,896.02
instruments during the holding period
Others - 2,649,130.46
Total 19,383,351.87 22,663,013.06
47. Income from changes in fair value
In RMB
Sources of income from changes in fair Amount incurred this year Amount incurred last year
value
Transactional financial assets - 2,150,943.40
48. Credit impairment gain (loss)
In RMB
Amount incurred this Amount incurred last year
Items
year
Impairment loss of notes receivable 365,055.74 (280,565.00)
Gain (loss) from impairment of accounts receivable (11,584,551.67) 2,500,153.07
Gain (loss) from impairment of other receivables 6,600,942.84 (7,201,148.60)
Total (4,618,553.09) (4,981,560.53)
49. Asset impairment gain (loss)
In RMB
Items Amount incurred this year Amount incurred last year
Inventory depreciation loss (183,706,022.57) (130,363,681.96)
Impairment loss of fixed assets (18,867,443.27) (32,769.22)
175
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Total (202,573,465.84) (130,396,451.18)
50. Asset disposal income
In RMB
Items Amount incurred this year Amount incurred last year
Gains & losses on foreign investment in
31,264.60 (597,458.77)
fixed assets
51. Non-Operation income
In RMB
Items Amount of this year Amount of last year Recorded in the amount of the
non-recurring gains and
losses
Insurance compensation 7,652,845.40 3,477,438.60 7,652,845.40
Payable without payment 6,334,444.97 17,140,459.60 6,334,444.97
Other 1,005,792.20 667,888.44 1,005,792.20
Total 14,993,082.57 21,285,786.64
52.Non-current expenses
In RMB
Amount of this year Amount of last year The amount of non-operating
Items
gains & lossed
Non-current asset Disposition 26,020.82 369,187.12 26,020.82
loss
Compensation expenses 7,248,331.74 - 7,248,331.74
Fine expenses 778.86 1,309,172.27 778.86
Other 201,926.05 7,903.96 201,926.05
Total 7,477,057.47 1,686,263.35 7,477,057.47
53.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of this year Amount oflast year
Current income tax expense 4,043,680.11 8,174,724.28
Deferred income tax expense (71,486,803.63) 2,944,072.68
Total (67,443,123.52) 11,118,796.96
(2)Reconciliation of account profit and income tax expenses
In RMB
Amount of current Amount of previous
Items
period period
Total profits 44,348,842.80 77,185,270.78
Current income tax expense accounted by tax and relevant
11,087,210.70 19,296,317.70
regulations
Influence of different tax rates applied by some subsidiaries (2,715,451.54) (5,229,585.58)
非应税收入的影响 (2,483,588.11) (53,103.78)
Non-deductible costs, expenses and losses 771,675.89 4,571,839.81
Tax impact by the unrecognized deductible losses and deductible
(66,704,686.87) -
temporary differences in previous years
Profit and loss of joint venture and associated enterprises accounted for by 2,931,982.20 8,059,643.49
176
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
equity method
Tax impact of research and development fee plus deduction (10,330,265.79) (15,526,314.68)
Income tax fee (67,443,123.52) 11,118,796.96
54. 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
Letter of Credit Deposit 167,866,753.31 35,875,977.74
Interest income 8,067,195.21 1,655,853.59
Government Subsidy 33,703,713.84 19,363,739.42
Current account 8,658,637.60 31,729,758.78
Total 218,296,299.96 88,625,329.53
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Payment of credit deposit 25,106,708.19 164,509,022.41
Cash 87,642,432.49 48,012,370.68
Current account and other 9,199,351.73 12,867,319.88
Total 121,948,492.41 225,388,712.97
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products, 1,316,000,000.00 1,128,309,484.61
principal and income
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products, 1,140,433,371.49 965,000,000.00
（5）Cash paid related with financing activities
In RMB
Items Amount of this year Amount of last year
Restricted stock repurchase 7,820,298.30
Lease payment 9,144,572.43 4,817,974.70
Total 9,144,572.43 12,638,273.00
55. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
177
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Amount of current Amount of previous
Items
period period
I. Adjusting net profit to cash flow from operating activities
Net profit 111,791,966.32 66,066,473.82
Add: asset impairment provision 202,573,465.84 130,396,451.18
Credit loss preparation 4,618,553.09 4,981,560.53
Depreciation of fixed assets and investment property 256,562,100.50 182,116,694.00
Depreciation of right-of-use assets 9,007,666.58 4,540,987.37
Amortization of intangible assets 5,082,893.36 5,030,106.23
Amortization of Long-term deferred expenses 1,819,286.52 1,171,163.32
Loss on disposal of fixed assets, intangible assets and other long-
(31,264.60) 597,458.77
term deferred assets
Fixed assets scrap loss 26,020.82 369,187.12
Loss on fair value changes - (2,150,943.40)
Financial cost 29,183,633.15 14,306,275.13
Loss on investment (19,383,351.87) (22,663,013.06)
Decrease of deferred income tax assets (66,115,217.51) 1,534,828.48
Increased of deferred income tax liabilities (5,371,586.12) 2,500,994.33
Decrease of inventories 1,248,186.40 (270,089,816.70)
Decease of operating receivables (81,468,525.61) (58,547,894.61)
Increased of operating Payable 40,694,723.73 (64,597,492.86)
Net cash flows arising from operating activities 490,238,550.60 (4,436,980.35)
II. Significant investment and financing activities that without cash
flows:
End balance of cash equivalents 874,474,834.46 302,408,433.72
Less: Beginning balance of cash equivalents 302,408,433.72 278,337,236.95
Net increase of cash and cash equivalent 572,066,400.74 24,071,196.77
(3)Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I Cash 874,474,834.46 302,408,433.72
Including: cash on hand 3,980.56 792.64
Bank deposits available for payment at any time 874,470,853.90 302,407,641.08
Other monetary funds available for payment at any time - -
II Cash equivalents - -
III Balance of cash and cash equivalents at the end of the year 874,474,834.46 302,408,433.72
In RMB
56. The assets with the ownership or use right restricted
In RMB
Book value at the end of the
Items Cause of restriction
reporting period
Monetary funds 116,990,685.31 Note(VII),1
Note receivable 48,387,401.67 Note(VII),3.(3)
Other receivables 6,559,327.26 Funds subject to freeze
Fixed assets 470,366,658.55 Mortgage
Intangible assets 32,984,090.65 Pledge
Total 675,288,163.44
57. Foreign currency monetary items
(1) Foreign currency monetary items
178
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds 21,802,736.14
Including：USD 2,507,856.21 6.9742 17,490,290.78
Euro 81,323,569.66 0.0524 4,261,355.05
HKD 57,199.18 0.8932 51,090.31
Account receivable 20,886,202.07
Including：USD 2,943,419.82 6.9742 20,527,998.51
Euro 2,092,440.00 0.0524 109,643.86
HKD 278,280.00 0.8932 248,559.70
Other receivable 7,051,194.01
Including：USD 913,364.76 6.9742 6,369,988.52
HKD 762,657.29 0.8932 681,205.49
Account payable 249,984,599.31
Including：USD 6,296,670.99 6.9742 43,914,242.82
Yen 3,932,333,073.99 0.0524 206,054,253.08
HKD 18,028.90 0.8932 16,103.41
Other payable 5,091,286.65
Including：USD 676,686.00 6.9742 4,719,343.50
Yen 3,381,984.00 0.0524 177,215.96
Euro 22,500.00 7.4229 167,015.25
HKD 31,025.46 0.8932 27,711.94
VIII. Change of consolidation scope
In 2022, the scope of consolidation of the Group remained unchanged.
IX. Equity in other subjects
1. Equity in subsidiaries
(1) Composition of the enterprise group
Shareholding
Place of
Main place ratio % Acquisition
Subsidiary name registratio Business nature
of business Indire method
n Direct
ct
Shenzhen Lishi Industry Property leasing 100.00 - Establishment
Shenzhen Shenzhen
Development Co., Ltd
100.00
Shenzhen Huaqiang Hotel Shenzhen Shenzhen Property leasing - Establishment
100.00
Shenzhen Shenfang Real Estate Property management - Establishment
Shenzhen Shenzhen
Management Co., Ltd.
100.00
Shenzhen Beauty Century Textile production and
Shenzhen Shenzhen - Establishment
Garment Co., Ltd. sales
Shenzhen Shenfang Sungang Real 100.00
Shenzhen Shenzhen Property management - Establishment
Estate Management Co., Ltd.
Polarizer production
SAPO Photoelectric Shenzhen Shenzhen 60.00 - Acquisition
and sale
Shengtou (Hongkong) Co.,Ltd. 100.00
Hongkong Hongkong Polarizer sales - Establishment
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Shenzhen Shengjinlian Polarizer production 100.00
Shenzhen Shenzhen - Establishment
Technology Co., Ltd. and sale, etc.
(2) Important non-wholly-owned subsidiaries
In RMB
Profit and loss
Dividends declared to Balance of minority
Minority shareholding attributable to minority
Subsidiary name minority shareholders equity at the end of the
ratio shareholders in this
in last year period
year
Shenzhen SAPO
40.00% 38,482,783.38 1,181,777,770.21
Photoelectric Co., Ltd.
(3) Major financial information of important non-wholly-owned subsidiaries
In RMB
SAPO Photoelectric
Items
Year-end balance/Amount incurred this year
Current assets 1,936,541,263.47
Non-current assets 2,419,432,602.01
Total assets 4,355,973,865.48
Current liabilities 674,071,107.48
Non-current liabilities 732,819,068.02
Total liabilities 1,406,890,175.50
Operating income 2,735,055,209.89
Net profit 96,206,958.45
Total comprehensive income 95,909,224.95
Cash flow from operating activities 484,437,283.64
2 Equity in joint venture arrangements or joint ventures
(1) Important joint ventures or associated enterprises
Shareholding ratio Accounting
treatment
Name of joint
method of
venture or Main place of Place of
Business nature investment in
associated business registration Direct Indirect joint ventures
enterprise
or associated
enterprises
Shenzhen
Guanhua
Property
Printing & Shenzhen Shenzhen 50.16% Equity method
leasing
Dyeing Co.,
Ltd. (Note)
Note: According to the articles of association of Shenzhen Guanhua Printing and Dyeing Co., Ltd., the board of directors
consists of six directors, including three directors appointed by the Group and three directors appointed by Qiaohui Industrial Co.,
Ltd., and the voting at the board meeting is valid only if it is approved by more than two thirds of all directors. Therefore, the
Group cannot control Shenzhen Guanhua Printing and Dyeing Co., Ltd. and has not included it in the consolidated financial
statements of the Group.
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(2) Main financial information of important joint venture
In RMB
Shenzhen Guanhua Printing & Dyeing Co., Ltd.
Items
Year-end balance/Amount incurred this year
Current assets 47,899,181.48
Non-current assets 217,362,821.36
Total assets 265,262,002.84
Current liabilities 16,619,409.76
Non-current liabilities 33,025,262.69
Total liabilities 49,644,672.45
Owners' equity attributable to the parent company 215,617,330.39
Share of net assets calculated according to shareholding ratio 108,153,652.92
Adjustment matters
-Goodwill 21,595,462.44
-Others (242,843.60)
Book value of equity investment in joint ventures 129,506,271.76
Fair value of equity investment of associated enterprises with open
-
quotation
Operating income 23,195,512.34
Net profit 2,575,847.73
Other comprehensive income -
Total comprehensive income 2,575,847.73
Dividends received from the joint venture this year -
(3) Summary financial information of unimportant joint ventures and associated enterprises
In RMB
Items Year-end balance/Amount incurred this year
Associated enterprise
Total book value of investment 4,975,563.98
Total of the following items calculated by shareholding ratio
-Net profit 15,593.93
-Other comprehensive income 151,869.82
-Total comprehensive income 167,463.75
X. Risks related to financial instruments
The Group's main financial instruments include monetary funds, transactional financial assets, notes
receivable, accounts receivable, accounts receivable financing, other receivables, other equity instruments
investment, short-term loans, accounts payable, other payables, other current liabilities, long-term loans and
lease liabilities, etc. At the end of this year, the financial instruments held by the Group are as follows. See Note
(VII) for details. The risks associated with these financial instruments and the risk management policies adopted
by the Group to reduce these risks are as follows. The management of the Group manages and monitors these
risk exposures to ensure that the above risks are controlled within a limited range.
In RMB
Items Balance at the end of this year
Financial assets
Measured at fair value, with its changes included in current profits and
losses
Transactional financial assets 319,605,448.44
Measured at fair value, with its changes included in other
comprehensive income
Receivable financing 54,413,796.91
Investment in other equity instruments 167,678,283.27
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Measured in amortized cost
Monetary funds 991,789,968.19
Note receivable 74,619,100.26
Accounts receivable 636,583,469.93
Other receivables 10,288,124.02
Financial liabilities
Measured in amortized cost
Short-term loan 7,000,000.00
Accounts payable 327,049,873.70
Other payables 196,701,468.33
Other current liabilities 92,945,741.78
Long-term loans 704,603,665.19
Lease liabilities 15,630,030.74
The Group uses sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes in risk variables on current profits and losses and shareholders' equity. Because any risk variable rarely
changes in isolation, and the correlation between variables will have a great impact on the final amount of a risk
variable change, the following contents are carried out under the assumption that each variable change is
independent.
1. Risk management objectives and policies
The Group's goal in risk management is to strike a proper balance between risks and benefits, reduce the
negative impact of risks on the Group's operating performance to the lowest level, and maximize the interests of
shareholders and other equity investors. Based on this risk management goal, the basic strategy of the Group's risk
management is to identify and analyze all kinds of risks faced by the Group, establish an appropriate risk
tolerance bottom line and conduct risk management, and timely and reliably supervise all kinds of risks to control
the risks within a limited range.
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreign
exchange risks are mainly related to US dollars, Japanese yen, Hong Kong dollars and euros. Except for some
import purchases and export sales of the Group's companies located in Chinese mainland which are mainly settled
in US dollars, Japanese yen, Hong Kong dollars and euros, other major business activities of the Group are settled
in RMB.
As of 31 December 2022, the Group's assets and liabilities were all RMB balances, except for the monetary
items in foreign currencies mentioned in Notes (VII), (57). The foreign exchange risks arising from the assets and
liabilities with foreign currency balances (converted into RMB) described in the table below may have an impact
on the Group's operating results.
In RMB
Balance at the end of this year
Items
Assets Liabilities
USD 44,388,277.81 48,633,586.32
Yen 4,370,998.91 206,231,469.04
Euro - 167,015.25
HKD 980,855.50 43,815.35
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk.
At present, the Group has not taken any measures to avoid foreign exchange risks.
Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedging
of overseas operations are highly effective.
On the basis of the above assumptions, with other variables unchanged, the pre-tax impact of possible
reasonable exchange rate changes on current profits and losses and shareholders' equity is as follows:
In RMB
This year
Items Changes in exchange rate Impact on profits Impact on shareholders' equity
All foreign Appreciation of RMB by 5% (10,266,787.69) (10,266,787.69)
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currencies
All foreign
Depreciation of RMB by 5% 10,266,787.69 10,266,787.69
currencies
1.1.2. Interest rate risk - risk of cash flow change
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainly
related to bank loans with floating interest rate. The Group continues to pay close attention to the impact of
interest rate changes on the Group's interest rate risk. The Group's policy is to maintain floating interest rates on
these loans, and there is no interest rate swap arrangement at present.
Sensitivity analysis of interest rate risk
With other variables unchanged, the pre-tax impact of possible reasonable interest rate changes on current
profits and losses and shareholders' equity is as follows:
In RMB
This year
Items Interest rate change Impact on profits Impact on shareholders' equity
Floating-rate
Increase by 1% (7,108,088.43) (7,108,088.43)
loan
Floating-rate
Decrease by 1% 7,108,088.43 7,108,088.43
loan
1.2. Credit Risk
As of December 31, 2022, the largest credit risk exposure that may cause financial losses to the Company
mainly came from the loss of the Company's financial assets caused by the failure of the other party to perform its
obligations, specifically including monetary funds, transactional financial assets, notes receivable, accounts
receivable, accounts receivable financing, and other receivables. On the balance sheet date, the book value of the
Company's financial assets has represented its maximum credit risk exposure.
In order to reduce credit risk, the company arranges specialized personnel to determine the credit limit,
conduct credit approval, and implement other monitoring procedures to ensure that necessary measures are taken
to recover overdue debts. In addition, the Company reviews the recovery of financial assets on each balance sheet
date to ensure that adequate provision for credit losses has been made for relevant financial assets. Therefore, the
management of the company believes that the credit risk undertaken by the company has been greatly reduced.
The Company's monetary funds are deposited in banks with high credit ratings, so monetary funds only have
low credit risk.
As of December 31, 2022, the company's balance of accounts receivable from the top five customers was
364098756.84 yuan, accounting for 53.21% of the company's balance of accounts receivable. In addition, the
Company has no other significant credit risk exposure concentrated in a single financial asset or a combination of
financial assets with similar characteristics.
1.3 Liquidity Risk
When managing liquidity risk, the Company maintains and monitors cash and cash equivalents that the
management believes are sufficient to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the company monitors the use of bank loans and ensures compliance with loan
agreements.
As of December 31, 2022, the Company's unused comprehensive bank credit line was RMB 212.1006
million.
The financial liabilities held by the Company are analyzed based on the maturity of undiscounted remaining
contractual obligations as follows:
In RMB
Item Within 1 year 1-5 years Over 5 years Total
Short-term loan 7,179,508.33 - - 7,179,508.33
Accounts payable 327,049,873.70 - - 327,049,873.70
Other payables 196,701,468.33 - - 196,701,468.33
Other current liabilities 92,945,741.78 - - 92,945,741.78
Long-term loans 97,182,080.19 594,693,456.05 150,625,989.54 842,501,525.78
Lease liabilities 7,475,902.01 9,546,024.00 - 17,021,926.01
2. Transfer of financial assets
2.1 Financial assets transferred but not completely derecognized
In the current year, the Group has cumulatively discounted bank acceptance bills of RMB 18071354.97 from
large state-owned commercial banks with higher credit ratings and listed national joint-stock commercial banks,
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obtaining cash consideration of RMB 17658492.79. There is a possibility that such acceptance bills cannot be
honored at maturity. If the acceptance bills cannot be accepted at maturity, the bank has the right to require the
Group to pay off the outstanding balance. As the Group still bears major risks such as credit risks related to these
acceptance bills, the Group continues to fully recognize the carrying amount of notes receivable and recognize the
amounts received as pledged loans due to transfers. On December 31, 2022, the discounted acceptance bills
mentioned above have all expired.
On December 31, 2022, the book value of the bank acceptance bill endorsed by the company to suppliers for
settlement of accounts payable was RMB 48387401.67. The Company believes that almost all risks and rewards
related to notes receivable at the time of endorsement have not been transferred, which does not meet the
conditions for derecognition of financial assets. Therefore, the recognition of relevant notes receivable has not
been completely terminated on the endorsement date.
2.2 The recognition has been terminated as a whole, but the transferor continues to be involved in the
transferred financial assets
The Company endorses bank acceptance bills held by large state-owned commercial banks with high credit
ratings and listed national joint-stock commercial banks to a third party. As almost all risks and rewards related to
these bank acceptance bills, such as interest rate risk, have been transferred to the bank, the Company terminates
the recognition of bank acceptance bills that have been endorsed but not expired. According to the relevant
provisions of the Negotiable Instruments Law of the People's Republic of China, if the bank acceptance bill fails
to be paid and accepted upon maturity, the undertaker has the right to require the company to pay off the
outstanding balance, so the company continues to be involved in the endorsed bank acceptance bill. As of
December 31, 2022, the bank acceptance bill that the company has endorsed but not expired was RMB
54995349.12.
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
Year-end fair value
Fair value Fair value Fair value
Items
measurement of measurement of measurement of Total
Level 1 Level 2 Level 3
Measured at fair value continuously
(I) Transactional financial assets - 319,605,448.44 - 319,605,448.44
(II) Receivable financing - - 54,413,796.91 54,413,796.91
(III) Investment in other equity -
- 167,678,283.27 167,678,283.27
instruments
Total assets continuously measured at fair
- 319,605,448.44 222,092,080.18 541,697,528.62
value
2. For Level 2 items measured at fair value continuously and non-continuously, the valuation techniques
and qualitative and quantitative information of important parameters are adopted
In RMB
Fair value at the Valuation
Items end of this year Input value
technique
Discounted cash
Transactional financial assets 319,605,448.44 Expected yield
flow technique
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3. For Level 3 items measured at fair value continuously and non-continuously, the valuation techniques
and qualitative and quantitative information of important parameters are adopted
Fair value at the Valuation
Items end of this year Input value
technique
Discounted cash
Receivable financing 54,413,796.91 Discount rate
flow technique
Comparison of P/B ratio of similar listed
Investment in other equity listed companies companies
167,678,283.27
instruments Comparable income
Market price
method
4. Fair value of financial assets and financial liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include monetary funds, notes receivable,
accounts receivable, other receivables, short-term loans, accounts payable, other payables, long-term loans and
lease liabilities.
The management of the Group believes that the book values of financial assets and financial liabilities
measured in amortized cost in the financial statements are close to their fair values.
XII. Related parties and related party transactions
1. Information about the parent company of the company.
Shareholding ratio Percentage of
Registered of the parent voting rights of the
Name of parent company Place of registration Business nature capital company to the parent company to
(RMB '0,000) Company % the Company %
Equity
18/F, Investment
investment,
Shenzhen Investment Building, Shennan
real estate 2,850,900.00 46.21 46.21
Holdings Co., Ltd Road, Futian
development,
District, Shenzhen
etc
Description of the parent company of the company
The parent company of the Company is a wholly state-owned company approved and authorized by the
Shenzhen Municipal Government, and exercises the investor function for the state-owned enterprises within the
authorized scope according to law.
During the reporting period, the changes in the registered capital of the parent company are as follows:
Unit: 10000 yuan
Balance at the end of last
Increase this year Decrease this year Balance at the end of this year
year
2,800,900.00 50,000.00 - 2,850,900.00
2. Information on subsidiaries of the Enterprise
Please refer to Notes (IX), 1 for details of the subsidiaries of the Enterprise.
3. Information on joint ventures and associated enterprises of the Enterprise
See Notes (IX), 2 for details of the important joint ventures or associated enterprises of the Enterprise.
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4. Information on other related parties
Names of related parties Relationship between the Enterprise
The Company's shareholding company and the chairman of the
Shenzhen Xinfang Knitting Co., Ltd.
company are the employees of the Group
The Company's shareholding company and the chairman of the
Shenzhen Dailishi Underwear Co., Ltd.
company are the employees of the Group
The former chairman of the Company is the former vice
Shenzhen Tianma Microelectronics Co., Ltd.(Note)
chairman of the Company
The company's subsidiary, Shengbo Optoelectronics, is a joint
stock company with minority shareholders. The chairman of
Hengmei Photoelectric Technology Co., Ltd.
the company is held by a former director of Shengbo
Optoelectronics
Note: Hengmei Photoelectric Technology Co., Ltd. will no longer be a related party of the Company in 2022.
5. Related party transactions
(1) Sale of goods
In RMB
Content of related party Amount incurred this
Related party Amount incurred last year
transaction year
Shenzhen Tianma Microelectronics Co.,
Polarizer -
Ltd 1,441,975.42
Shenzhen Guanhua Printing & Dyeing
Textile 8,849.56 -
Co., Ltd.
Shenzhen Investment Holdings Co., Ltd Textile - 48,907.96
Total 8,849.56 1,490,883.38
(2) Lending of related party funds
In RMB
Related party Borrowing amount Start date Due date Description
Lending
Shenzhen Guanhua
The annual lending rate
Printing & Dyeing Co., 3,806,454.17 2019.07.30 2023.07.30
is 0.30%
Ltd.
(3) Rewards for the key management personnel
In RMB
Rewards for the key management Amount of this year Amount of last year
personnel Items
11,966,067.00 11,152,828.00
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Balance of Balance of Bad debt
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Book Book Book Provision
Account Shenzhen Tianma
receivable Microelectronics Co., Ltd. - - 412,495.18 18,686.03
Account Shenzhen Investment Holdings
- - 55,266.00 2,503.55
receivable Co., Ltd
Other Account Shenzhen Dailishi Underwear
Co., Ltd. 1,100,000.00 58,850.00 1,100,000.00 55,000.00
receivable
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Hengmei Optoelectronics Co., - 170,977.53
Accounts payable
Ltd
Other payable Yehui International Co.,Ltd. 1,124,656.60 1,124,656.60
Other payable Shenzhen Changlianfa 2,023,699.95 2,023,699.95
Printing & dyeing Co., Ltd.
Other payable Shenzhen Guanhua Printing 3,806,454.17 3,806,454.17
& dyeing Co., Ltd.
Shenzhen Xinfang Knitting 244,789.85 244,789.85
Other payable
Co., Ltd.
Shenzhen Investment 643,987.04 -
Other payable
Holdings Co., Ltd
XIII. Commitments and contingencies
1. Important commitments
(1) Capital commitment
In RMB
Amount at the end of Amount at the end of last
Items
this year year
Contracted but not recognized in the financial statements
Commitment to purchase and build long-term assets 3,761,094.00
2. Contingencies
In 2022, litigation disputes between the Company and its controlling subsidiary Shengbo Optoelectronics
and its non-controlling shareholder, Hangzhou Jinhang Equity Investment Fund Partnership (Limited
Partnership) (hereinafter referred to as "Jinhang Fund"), including the shareholder's right to know, the
dissolution of Shengbo Optoelectronics, and the confirmation of the effectiveness of the resolution of Shengbo
Optoelectronics, were heard in the Pingshan District People's Court of Shenzhen City, Guangdong Province.
The Company believes that the above litigation matters were caused by differences and disputes between
the shareholders of Shengbo Optoelectronics and the failure to reach an agreement, which did not significantly
affect the financial situation and production and operation of Shengbo Optoelectronics.
As of December 31, 2022, the Company has no pending litigation, external guarantees, and other contingencies
that should be disclosed beyond the above.
XIV. Matters after the balance sheet date
1. Profit distribution after the balance sheet date
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On April 1, 2023, the company held a board meeting and approved the 2022 profit distribution plan. The
company plans to distribute a cash dividend of RMB 0.6 (tax inclusive) per 10 shares to all shareholders based
on the total capital stock of 506521849 shares as of December 31, 2022, with a total cash dividend of RMB
30391310.94 (tax inclusive). The profit distribution plan is yet to be approved by the Company's shareholders'
meeting.
In RMB
Items Amount
Profits or dividends to be distributed 30,391,310.94
Profits or dividends declared after deliberation and approval 30,391,310.94
XV. Other important matters
1. Segment information
(1) Determination basis and accounting policy of reporting segment
According to the company's internal organizational structure, management requirements, and internal
reporting system, the company's business is divided into three operating segments, and the company's
management regularly evaluates the operating results of these segments to determine the allocation of resources
and evaluate performance. On the basis of operating segments, the company has determined the following three
reporting segments: polarizer business, property leasing business, and textile business.
Segment reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each segment when reporting to the management, and these measurement bases are
consistent with the accounting and measurement bases used in the preparation of financial statements.
(2) Financial information of reporting segment
In RMB
This year or the end
Polarizer Property leasing Textile Offset Total
of this year
Operating income:
External transaction
2,728,009,332.54 81,731,913.50 28,247,018.32 - 2,837,988,264.36
income
Inter-segment
- 4,709,369.95 - (4,709,369.95) -
transaction income
Total operating
2,728,009,332.54 86,441,283.45 28,247,018.32 (4,709,369.95) 2,837,988,264.36
income of segment
Operating expenses
2,527,835,900.31 77,013,737.77 39,239,385.90 (4,360,768.89) 2,639,728,255.09
(note)
Operating profit 20,266,160.12 30,304,595.91 (12,022,403.47) (1,715,534.86) 36,832,817.70
Net profit 91,118,912.03 34,073,314.37 (12,013,091.49) (1,387,168.59) 111,791,966.32
Total assets of
4,355,319,002.77 1,282,812,378.49 37,349,989.80 (58,344,003.16) 5,617,137,367.90
segment
Total liabilities of
1,404,343,189.16 202,684,944.37 29,223,370.78 (50,156,461.83) 1,586,095,042.48
segment
Note: This item includes operating costs, taxes and surcharges, administrative expenses, research and
development expenses, sales expenses, and financial expenses.
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2. Other important transactions and matters that have an impact on investors' decisions
(1) Significant asset restructuring
On December 30, 2022, the Company held the 19th meeting of the 8th Board of Directors and deliberated
and passed the Proposal on the Plan for Issuing Shares and Paying Cash to Purchase Assets, Raising Supporting
Funds, and Related Party Transactions. The Company plans to purchase 100% of the total equity of Hengmei
Optoelectronics Co., Ltd. held by 17 companies such as Qimei Materials and Haosheng (Danyang) through
issuing shares and paying cash. The cash consideration for this transaction is proposed to be paid by the
company with self raised funds such as merger and acquisition loans and raised matching funds. The company
plans to raise matching funds through non-public offering of shares to no more than 35 qualified specific
investors. The total amount of raised matching funds shall not exceed 100% of the transaction price for the
proposed purchase of assets through the issuance of shares, and the number of shares issued shall not exceed
30% of the total share capital of the listed company after the completion of the purchase of assets through the
issuance of shares.
This transaction will not result in a change in the control of the company. Before and after this transaction,
the actual controller of the company is the State-owned Assets Supervision and Administration Commission of
the Shenzhen Municipal People's Government. As of the date of approval and issuance of this financial
statement, this transaction still needs to obtain relevant approval or approval, filing, and other procedures. The
audit, evaluation, due diligence, and other work involved in this transaction are still in progress. After the
relevant work is completed, the company will again convene the board of directors to review the relevant
matters of this transaction.
(2) Properties not yet disposed of by Shenzhen Xieli Automobile Enterprise Co., Ltd. (hereinafter referred
to as "Shenzhen Xieli")
Shenzhen Xieli, a Sino-foreign joint venture established by the Company and Hong Kong Xieli
Maintenance Company (hereinafter referred to as "Hong Kong Xieli"), was deregistered by the Shenzhen
Municipal Market Supervision and Administration in March 2020. However, there are still three properties
under the name of Shenzhen Xieli that need to be negotiated between the shareholders of both parties. In July
2020, the company filed a lawsuit to the People's Court of Yantian District, Shenzhen City, Guangdong
Province to revoke the cancellation of Shenzhen Xieli approved by the Shenzhen Market Supervision and
Administration Bureau.
In December 2022, the People's Court of Yantian District, Shenzhen City, Guangdong Province, made a
first instance judgment revoking the administrative act of canceling the registration of Shenzhen Xieli. In
January 2023, the third person in the original trial, Hong Kong Xieli, appealed to the Shenzhen Intermediate
People's Court of Guangdong Province. Later, due to the failure of Hong Kong Xieli to pay the case acceptance
fee in advance on schedule, the Shenzhen Intermediate People's Court of Guangdong Province issued an
administrative ruling, ruling that Hong Kong Xieli withdraw its appeal processingl.
XVI. Notes on main items of parent company's financial statements
1. Accounts receivable
(1) Disclosure by age
In RMB
Balance at the end of this year
Aging
Accounts receivable Credit loss provision Accrual proportion (%)
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Within 1 year 13,871,107.36 713,159.25 5.14
1-2 years 2,485,076.00 - -
Total 16,356,183.36 713,159.25
(2) Classified disclosure by credit loss accrual method
In RMB
Balance at the end of this year
Book balance Credit loss provision
Category Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
Credit loss provision accrued by
- - - - -
item
Credit loss provision accrued by
16,356,183.36 100.00 713,159.25 4.36 15,643,024.11
portfolio
Total 16,356,183.36 100.00 713,159.25 4.36 15,643,024.11
Accounts receivable for which provision for credit losses is made by portfolio:
In RMB
Balance at the end of this year
Accounts receivable Credit loss provision Expected credit loss rate (%)
Within 1 year 13,871,107.36 713,159.25 5.14
1-2 years 2,485,076.00 - -
Total 16,356,183.36 713,159.25
Description of accounts receivable for which provision for credit losses is made by portfolio:
As a part of the company's credit risk management, the company uses an impairment matrix to determine the
expected credit losses of accounts receivable formed by property leasing businesses based on the aging of
accounts receivable. This type of business involves a large number of customers with the same risk
characteristics, and aging information can reflect the solvency of such customers when their accounts receivable
mature.
(3) Credit loss provision withdrawn, recovered or reversed this year
In RMB
Balance at the mount of change this year Balance at
Category beginning of Recovery or Write-off or Other the end of
Accrual
this year reversal cancellation changes this year
Accounts receivable with credit
- - - - - -
loss provision accrued by item
Accounts receivable with credit 295,479.71 713,159.25
417,679.54 - - -
loss provision accrued by portfolio
Total 417,679.54 295,479.71 - - - 713,159.25
Changes in credit loss provision of accounts receivable:
In RMB
Expected credit loss for the whole duration
Items
Year-beginning balance 417,679.54
Accrual this year 295,479.71
Reversal this year -
Write-off this year -
Other changes -
Year-end balance 713,159.25
(4) No actual write-off of accounts receivable this year.
(5) Top five units of the year-end balance of accounts receivable collected by the defaulting party
In RMB
Unit name Book balance at the Proportion of total Year-end balance of
190
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
end of this year accounts receivable credit loss provision
(%)
Total accounts receivable of the top five balances on
15,404,631.71 94.18 709,106.85
December 31, 2022
(6) There are no accounts receivable that have been derecognized due to the transfer of financial assets this year.
2.Other receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 14,132,756.62 14,383,631.68
Total 14,132,756.62 14,383,631.68
(1) Disclosure by aging
In RMB
Balance at the end of this year
Aging
Other receivables Credit loss provision Accrual proportion (%)
Within 1 year 3,408,892.46 59,301.12 1.74
1-2 years 10,707,995.02 3,018.92 0.03
2-3 years - - -
Over 3 years 15,279,395.10 15,201,205.92 99.49
Total 29,396,282.58 15,263,525.96
(2) Disclosure by payment nature
In RMB
Book balance at the end Book balance at the end
Payment nature
of this year of last year
Deposit and security deposit 10,000.00 10,000.00
External unit transactions 15,349,339.97 15,349,339.97
Related party transactions within the consolidation scope 12,980,241.09 14,475,600.00
Others 1,056,701.52 1,047,702.42
Total 29,396,282.58 30,882,642.39
(3) Accrual of credit loss provision
In RMB
Year-end amount
Stage Expected average loss rate
Book balance Loss provision Book value
(%)
Other receivables for
which credit loss
provision is made
51.92 29,396,282.58 15,263,525.96 14,132,756.62
according to the
combination of credit
risk characteristics
(4) Changes in credit loss provision of other receivables:
In RMB
Third stage
Second stage
First stage Expected credit
Expected credit
Expected credit loss for the whole
Credit loss provision loss for the whole Total
loss in next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Balance as at 1 Jan. 2022 1,387,764.39 - 15,111,246.32 16,499,010.71
191
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Book balance of other account
receivable in Current Year as at 1 Jan.
2022
--Transfer to the second stage (1,115.91) 1,115.91 - -
- - - -
-- Transfer to the third stage
- - - -
-- Reversal to the second stage
- - - -
-- Reversal to the first stage
Provision in Current Year - 1,903.01 89,959.60 91,862.61
(1,327,347.36) - - (1,327,347.36)
Reversal in Current Year
Conversion in Current Year - - - -
- - - -
Write off in Current Year
Other change - - - -
Balance as at 31 Dec. 2022 59,301.12 3,018.92 15,201,205.92 15,263,525.96
(5) Other receivables with no actual write-off this year
(6) Top five companies with year-end balance of other receivables collected by the defaulting party
In RMB
Proportion of total
Year-end year-end balance
Year-end balance of
balance of of other
Unit name Payment nature Aging credit loss provision
other receivables (%)
receivables
Current
payment
Total other receivables of receivable
Within 1 year, Over
the top five balances on between 15,899,759.97 54.09 14,858,609.97
3 years
December 31, 2022 companies and
internal current
payment
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 1,974,532,127. 1,957,949,498. 1,972,630,835.
16,582,629.30 16,582,629.30 1,956,048,206.09
subsidiaries 39 09 39
Investments in
129,506,271.76 - 129,506,271.76 128,214,225.54 - 128,214,225.54
joint ventures
Investments in
associates 4,975,563.98 - 4,975,563.98 4,808,100.23 - 4,808,100.23
company
2,109,013,963. 2,092,431,333. 2,105,653,161.
Total 16,582,629.30 16,582,629.30 2,089,070,531.86
13 83 16
（1）Investment to the subsidiary
In RMB
192
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Balance at the Decreased Withdrawn Closing balance of
Add Balance at the end
Name beginning of this investmen impairment impairment
investment of this year
year t provision provision
SAPO Photoelectric 1,924,663,070.03 - - 1,924,663,070.03 - 14,415,288.09
Shenzhen Lisi - - 8,073,388.25 - -
Industrial
8,073,388.25
Development Co.,
Ltd.
Shenzhen Beauty - 18,765,507.55 - 2,167,341.21
Century Garment 16,864,215.55 1,901,292.00
Co., Ltd.
Shenzhen Huaqiang - - 15,489,351.08 - -
15,489,351.08
Hotel
Shenzhen Shenfang - - 1,713,186.55 - -
Real Estate
1,713,186.55
Management Co.,
Ltd.
Shenzhen Shenfang - - 5,827,623.93 - -
Sungang Real Estate
5,827,623.93
Management Co.,
Ltd.
Total 1,972,630,835.39 1,901,292.00 - 1,974,532,127.39 - 16,582,629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closin
Wit
g
Declarat hdra
Adjustme balanc
Add Other ion of wn
Opening nt of other Ot Closing e of
Name inve equity cash imp
balance comprehe he balance impair
stme chang dividend airm
nsive r ment
nt es s or ent
income provis
profit prov
ion
ision
I. Joint
ventures
Shenzhen 1.00 - - - - - -
Guanhua
128,214,225 1,292,045.2 129,506,271
Printing & -
.54 2 .76
Dyeing Co.,
Ltd.
128,214,225 1.00 - 1,292,045.2 - - - - 129,506,271 -
Subtotal -
.54 2 .76
II. Associated
enterprises
Shenzhen - - - - - - -
Changlianfa
2,972,202.9 3,105,796.5
Printing and 133,593.58 -
7 5
dyeing
Company
Yehui - - - - - - 1,869,767.4 -
1,835,897.2 (117,999.65 151,869.8
International 3
6 ) 2
Co., Ltd.
4,808,100.2 - - 151,869.8 - - - - 4,975,563.9 -
Subtotal 15,593.93
3 2 8
133,022,325 1.00 - 1,307,639.1 151,869.8 - - - - 134,481,835 -
Total
.77 5 2 .74
193
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
4.Business income and Business cost
(1）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
56,046,883.88 9,544,956.96 74,272,555.42 7,660,814.11
Business
Other Business
- - 3,887,130.77 3,887,130.77
income
Total 56,046,883.88 9,544,956.96 78,159,686.19 11,547,944.88
(2) Main business income and main business cost classified by product
In RMB
Amount incurred this year Amount incurred last year
Product
Main business income Main business cost Main business income Main business cost
Property leasing 56,046,883.88 9,544,956.96 74,272,555.42 7,660,814.11
(3) Main business income and main business cost classified by area
In RMB
Amount incurred this year Amount incurred last year
Area
Main business income Main business cost Main business income Main business cost
Domestic 56,046,883.88 9,544,956.96 74,272,555.42 7,660,814.11
5.Investment income
In RMB
Items Amount of current Amount of previous
period period
Income from long-term equity investment measured by adopting the equity
1,307,639.15 33,984.66
method
Investment income from the disposal of long-term equity investment - 20,779.93
Investment income of trading financial assets during the holding period 15,748,625.37 16,344,590.24
Dividend income earned during investment holdings in other equity
1,599,735.85 1,659,743.65
instruments
Other - 2,350,000.00
Total 18,656,000.37 20,409,098.48
XVII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
According to China Securities Regulatory Commission's Explanatory Announcement No.1 on Information
Disclosure of Companies Offering Securities to the Public - Non-recurring gains and losses (2008), the Group's
non-recurring gains and losses in 2022 are as follows:
In RMB
Items Amount
Non-current asset disposal gain/loss 31,264.60
Government subsidy recognized in current gain and loss(excluding those closely related to the
26,350,210.89
Company’s business and granted under the state’s policies)
Losses/gains from changes of fair values occurred in holding trading financial assets and trading
financial liabilities, and investment income obtaining from the disposal of trading financial assets,
-
trading financial liability and financial assets available-for-sale, excluded effective hedging business
relevant with normal operations of the Company
Reversal of the account receivable depreciation reserves subject to separate impairment test -
Other non-business income and expenditures other than the above 7,516,025.10
194
深圳市纺织(集团)股份有限公司 2022 年年度报告全文
Total non-recurring gains and losses 33,897,500.59
Less :Influenced amount of income tax 5,589,310.62
Net non-recurring gains and losses 28,308,189.97
Influenced amount of minor shareholders’ equity (after tax) 9,147,064.53
Non-recurring gains or losses attributable to the common shareholders of the Company 19,161,125.44
2. Return on net asset and earnings per share
This statement of return on net assets and earnings per share is prepared by the Group in accordance with the
relevant provisions of the Rule No.9 for Compilation of Information Disclosure of Public Offering Securities
Companies - Calculation and Disclosure of Return on Net Assets and Earnings per Share (revised in 2010)
issued by China Securities Regulatory Commission.
In RMB
Weighted Earnings per share
Profit of report period average returns Basic earnings per Diluted earnings
equity(%) share per share
Net profit attributable to the Common stock shareholders of
2.59 0.14 0.14
Company.
Net profit attributable to the Common stock shareholders of
1.91 0.11 0.11
Company after deducting of non-recurring gain/loss.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
April 4, 2023
195
