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深圳中冠纺织印染股份有限公司
Shenzhen Victor Onward Textile Industrial Co., Ltd.
2009年半年度报告
The Semiannual Report 2009
2009/08/19深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Important Notes
The board of directors and directors of the Company hereby guarantees that there are no false records,
misleading representation or important omissions in this report and shall assume joint and several liability
for the authenticity, accuracy and completeness of the contents hereof.
Hu Yongfeng, Chairman of the Board of Directors and General Manager, Mr.Zhang Jinliang,Deputy
General Manager and Mr. Ren Changzheng, Manager of Finance Department represent and warrant the
financial and accounting report in the Semiannual report is true and complete.
The semi-annual financial report of the Company is unaudited.深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Contents
Chapter I. Brief Introduction of the Company
Chapter II. Change of Share Capital and Shareholding of Principal Shareholders
Chapter III. Information about Directors, Supervisors and Senior Executives
Chapter IV. Report of the Board of Directors
Chapter V. Important Events
Chapter VI. Financial Report (unaudited)
Chapter VII. List of Documents Available for Inspection深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Chapter I. Brief Introduction of the Company
I. Brief Introduction of the Company
(I) Name of the Company in Chinese: 深圳中冠纺织印染股份有限公司
Name in English: Shenzhen Victor Onward Textile Industrial Co., Ltd.
English abbreviation: VICTOR ONWARD
(II) Stock exchange for listing: Shenzhen Stock Exchange
Stock Abbreviation: *ST Victor Onward A, *ST Victor Onward B
Stock Code : 000018, 200018
(III) Registered address: No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen
Office address: No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen
Contact address: Room 1308, Hualian Building, No.2008 Shennan Zhong Road, Shenzhen
Zip Code: 518119
Website: http://www.chinaszvo.com
E-mail：szvo@chinaszvo.com
(IV) Legal Representative: Hu Yongfeng
(V) Secretary of the Board of Directors : Chen Xing
Contact address: Room 1308, Hualian Building, No.2008 Shennan Zhong Road, Shenzhen
Tel: （755）83668254
Fax: （755）83668427
E-mail：cx@chinaszvo.com
(VI) Designated newspapers for information disclosure: Securities Times and Hong Kong Commercial
Daily
Designated website for information disclosure: http://www.cninfo.com.cn
The place for preparing and placing the semiannual report: Secretariat of the Board of the Company
(VII) Other Relevant Information:
1. The date and place when and where the Company made its first registration:
The Company was first registered as Shenzhen Victor Onward Printing and Dyeing Co., Ltd. in
Shenzhen in 1984.
The Company changed its registration and was registered as Shenzhen Victor Onward Textile Industrial
Co., Ltd. in Shenzhen in 1991.
2. Registration No. of the Business License of Incorporated Enterprise: 100625
3. Tax Registration No.: 440301618801483
4. The name and business address of the Certified Public Accountants engaged by the Company
Name: Shinewing Certified Public Accountants
Address:Room 4001A,Lianhe Plaza, Futian District, Shenzhen, China
2..Company’s Enterprise Legal Business Registration Number:：440301501131182
3. Tax Registration No.: 440301618801483
4. The name and business address of the Certified Public Accountants engaged by the Company
Name: Shinewing Certified Public Accountants
Address:Room 4001A,Lianhe Plaza, Futian District, Shenzhen, China深圳中冠纺织印染股份有限公司 2009 年半年度报告
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II. Highlights of financial data and indexes
(I) Main profit indexes for the semi-annual 2009
Unit: RMB
End of the report
year
End of the
previous year
Increase /Decrease （％）
Total assets 193,057,555 192,923,851 0.07
Owners’ equity attributable to shareholders
of the listed company 129,169,532 130,073,334 -0.69
Share capital 169,142,356 169,142,356 0.00
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
0.76 0.77 -1.30
Report period
(January-June)
Same period last
year
Increase /Decrease （％）
Total operating income 12,487,503 30,760,857 -59.40
Operating profit -1,376,856 -4,418,876 -68.84
Total profit -1,358,103 -4,452,871 -69.50
Net profit attributable to shareholders of the
listed company -1,265,877 -4,296,620 -70.53
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
-1,284,630 -4,586,631 -71.99
Basic earnings per share(RMB/share) -0.01 -0.03 -66.67
Diluted earnings per share(RMB/share) -0.01 -0.03 -66.67
Return on equity（%） -0.98% -2.70% 1.72
Net cash flow arising from operating
activities 2,393,354 11,242,976 -78.71
Net cash flow per share arising from
operating activities (RMB/share) 0.01 0.07 -85.71
(2) Items of non-recurring gains and losses deducted(yuan)
Items of non-recurring gains and losses Amount Notes (if applicable
Net amount of non-operating income and expense the
aforesaid items 18,753 Disposal of
non-current assets
Total 18,753 -
(3) Attached schedule of profit statement
According to requirements of Rule No.9 on information Disclosure and Financial Records of Companies
Publicly Issuing Securities issued by CSRC, the net assets earning ratio and earnings per share were as
follows:
Return on equity
%
Earnings per share (RMB)
Profit in the report period
Fully
diluted
Weighted
average Fully diluted Weighted
average
Net profit attributable to
shareholders of the parent
company
-0.01 -0.01 -0.01 -0.01
Net profit attributable to
shareholders of the Parent
company after deducting
-0.01 -0.01 -0.01 -0.01深圳中冠纺织印染股份有限公司 2009 年半年度报告
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non-recurring gains and losses
（IV）Difference adjustment statement of accounting staement :
Unit：RMB
Net profit attributable to shareholders of the
listed company
Owner equity attributable to shareholders of
the listed company
Current term Same period last year End of the report year Beginning of the
report year
Pursuant to overseas
accounting standards -1,110,558 -4,141,170 125,951,452 126,699,936
Pursuant to Chinese
accounting standards -1,265,877 -4,296,620 129,169,532 130,073,334
Subitem and total adjusted pursuant to international accounting standards:
Statement balance of
the Group compiled by
Chinese EAS
-1,265,877 -4,296,620 129,169,532. 130,073,334
Switch back the part of
Hong Kong house
property assessment in
accordance with IAS
155,319 155,450 -3,218,080 -3,373,398
Total difference of
Chinese and overseas
accounting standards
-1,110,558 -4,141,170 125,951,452 126,699,936
Notes difference of
Chinese and overseas
accounting standards
IV. Particulars about Changes in Shareholders' Equity in the Report Period
Unit:RMB
Owner’s equity Attributable to the Parent Company
Items Share
Capital
Attributable
profit
Other
Minor
shareholders’
equity
Total of
owners’
equity
Balance
at the
beginning
of current
year
169,142,356 39,194,631 26,309,287 -115,810,517 11,237,577 884,454 130,957,788
Changed
in the
current
year
- 131,304 - -1,265,877 230,771 -72,582 -976,384
Balance
at the end
of this
term
169,142,356 39,325,935 26,309,287 -117,076,394 11,468,348 811,872 129,981,404
Chapter II. Change of Share Capital and Shareholding of Principal Shareholders
I. Particulars schedule of change in share capital
The total number and the structure of the shares of the Company remained unchanged in the report period.
The statement of changes of share capital深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Unit：Shares
Before this change Increase or decrease this time (+/-) After this change
Quantity Proportio
n% Issuin
g of
new
share
s
Bon
us
sha
res
Transf
erred
from
reserv
es
Other Subtotal
Quantity Proporti
on%
I. Share
with
conditiona
l
subscriptio
n
48,506,283 28.68 0 0 0 －48,506,283 －48,506,283 0 0
1.State-own
ed shares
0 0.00 0 0 0 0 0 0 0
2.Staee-ow
ned legal
person
shares
5,365,251 3.17 0 0 0 －5,365,251 －5,365,251 0 0
3.Other
domestic
shares
43,141,032 25.51 0 0 0 －43,141,032 －43,141,032 0 0
Of which：
Domestic
legal person
shares
43,141,032 25.51 0 0 0 －43,141,032 －43,141,032 0 0
Domestic
natural
person
shares
0 0 0 0 0 0 0 0 0
4.Foreign
shareholdin
g
0 0 0 0 0 0 0 0 0
Of which：
Foreign
legal person
shares
0 0 0 0 0 0 0 0 0
Foreign
natural
person
shares
0 0 0 0 0 0 0 0 0
II. Shares
with
uncondition
al
subscription
120,636,073 71.32 0 0 0 48,506,283
48,506,283 169,142,356 100
1.Common
shares in
RMB
51,214,170 30.28 0 0 0 48,506,283 48,506,283 99,720,453 58.96
2.Foreign
shares in
69,421,903 41.04 0 0 0 0 0 69,421,903 41.04深圳中冠纺织印染股份有限公司 2009 年半年度报告
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domestic
market
3.Foregin
shares in
overseas
market
0 0 0 0 0 0 0 0 0
4.Other 0 0 0 0 0 0 0 0 0
III. Total
of capital
shares
169,142,356 100 0 0 0 0 0 169,142,356 100
Notes：The sale restriction of all restricted A shares held by relevant original shareholders holding
non-negotiable shares in A share market including Union Holding Co., Ltd. and Shenzhen Textile (Group)
Holding Co., Ltd. after share holding structu re reform was cancelled on June 29, 2009. .(Announcement
No.: 2009-0537)
II. By the end of the report period, the Company had 10,596 registered shareholders in total, including 5,626
shareholders holding A shares and 4,970 shareholders holding B shares.
III. Top 10 shareholders and top 10 holders of unconditional shareshares
Unit：Shares
Total number of shareholders 10,596
Particulars about the shareholding of the top ten shareholders
Name of shareholder Nature of
shareholder
Proportion
(%)
Quantity of
shares held
Conditional
shares
Pledged or
frozen
Union Holdings Co., Ltd. Legal person
shareholder
25.51% 43,141,032 0 0
STYLE-SUCCESS
LIMITED
Foreign
shareholder
14.46% 24,466,029 0 0
Shenzhen Textile
(Group) Holdings Co.,
Ltd
State-owned
shareholder
7.26% 12,273,670 0 0
Rich Crown Investment
Co., Ltd.
Foreign
shareholder
3.62% 6,114,556 0 0
Union Developing
Group Co., Ltd.
State-owned
shareholder
3.52% 5,948,681 0 0
Shing Ying Chieh Foreign
shareholder
3.01% 5,087,061 0 unknown
Yang Xiaohua
Society
public
shareholder
1.34% 2.260,000 0 unknown
Chen Weiyu
Society
public
shareholder
0.91% 1,538,449 0 unknown
Taifook Securities
Company
Limited-Account Client
Foreign
shareholder
0.77% 1,307,583 0 unknown
Liu Yue Foreign
shareholder
0.51% 854,756 0 unknown
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Union Holdings Co., Ltd. 43,141,032 RMB Common shares
STYLE-SUCCESS LIMITED 24,466,029 Foreign shares placed in domestic
exchange
Shenzhen Textile (Group)
Holdings Co., Ltd
12,273,670 RMB Common shares
Rich Crown Investment Co., Ltd. 6,114,556 Foreign shares placed in domestic
exchange
Union Developing Group Co.,
Ltd.
5,948,681 RMB Common shares
Shing Ying Chieh 5,087,061 Foreign shares placed in domestic
exchange
Yang Xiaohua 2.260,000 RMB Common shares
Chen Weiyu 1,538,449 RMB Common shares
Taifook Securities Company
Limited-Account Client 1,307,583 Foreign shares placed in domestic
exchange
Liu Yue 854,756 Foreign shares placed in domestic
exchange
Notes to the related relationship
between the shareholders or their
concerted action
The controlling shareholder of the above-mentioned largest shareholder
Shenzhen Union Holdings Ltd. and fourth shareholder Rich Crown
Investment Co., Ltd.. Is Union Developing Group Ltd.
IV. The controlling shareholder of the Company
The actual controller of the Company remained unchanged in the report period.
Chapter III. Information about Directors, Supervisors and Senior Executives
I. Status of Shareholding of Directors, Supervisors and Senior Executives
In the report period, the directors, supervisors and senior executives of the Company neither held nor traded
the shares of the Company.
II. The changes of director, supervisors and senior executives in the report period
In the report period, the shares of the Company held by the directors, supervisors and senior executives of the Company
remained unchanged.
Chapter IV. Report of the Board of Directors
I. The discussion and analysis on the operation status
The Company’s printing & dyeing plant in Shenzhen ceased production, Except that Shenzhen East Asia
Victor Onward Textile Printing and Dyeing Co., Ltd. is still operating normally, other 5 subsidiaries
controlled by the Company have stopped operation or are maintaining daily operation by house property
lease.
.It plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery深圳中冠纺织印染股份有限公司 2009 年半年度报告
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and equipment in 2007, Due to the reason on the side of the other party of joint venture and change of industry prospect，
as of June 30, 2009, infrasture project of Nanjing factory is slightly delayed comparing to the original plan.
the Company set up a comtrolling enterprise “ Shenzhen East Asia Victor Onward Textile Industrial Co.,
Ltd.” (hereinafter refered to as “East Asia Victor”) to connect the original printing & dyeing business of
Company.
(I) Operation achievements
Unit: RMB
Unit：RMB
Items January-June 2009 January-June 2008 Change margin (%)
Income from main operations 12,487,503 30,760,857 -59.40
Profit from main operations 873,185 831,302 5.04
Net profit -1,358,103 -4,296,620 -68.39
Net increase amount of cash and
cash equivalents 2,290,050 8,802,758 -73.98
1.Income from main operation conspicuously decreased by RMB 18.27 million year on year mainly
due to decrease of business volume;
2.Amount of loss decreased by RMB 2.94 year on year mainly due to profit making by Zhejiang Union
Hangzhou Bay Ventures, a joint stock subsidiary, in the first half year;
3.Net increase in cash and cash equivalents decreased by RMB 6.51 million year on year mainly due to
decrease of cash received from sales of goods and rendering of services.
(II) Financial status
Unit：RMB
Items June 30, 2009 December 31, 2008 Change margin (%)
Total assets 193,057,555 192,923,851 0.07
Shareholders’ equity 129,169,532 130,073,334 -0.69
1.Total assets decreased by RMB 0.13 million over the beginning of the year mainly due to operating
loss of the Company in current period.
2. Shareholders’ equity decreased by RMB 0.9 million over the beginning of the year mainly due to
operating loss of the Company in current period.
II. Operation in the report period
(I) Scope of key business
The Company's key business scope still covers printing and dyeing, processing and sales of all kinds of pure cotton, pure深圳中冠纺织印染股份有限公司 2009 年半年度报告
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linen, polyester-mixed cotton, linen-mixed cotton and blended high-grade lining and the finished garments. The vacant
ground and houses that became idle after production suspense were leased.
(II) The industry or product whose income or profit accounts for over 10% of total income from key
business or profit from key business in the report period
Unit：RMB’0000
The Status of key business in terms of industry of business
In terms of business
line or product
Income
from main
operation
Cost of
main
operation
Gross
profit
ratio
（%）
Increase/decrease
of income from
main operation
over the previous
year (%)
Increase/decrease
of cost of main
operation over
the previous year
(%)
Increase or
decrease
of Gross
profit ratio
from main
operation
over the
previous
year (%)
Bleaching,
printing and
dyeing 949 971 -2.32 -64.42 -65.05 1.84
Lease 299 190 36.45 -26.89 -11.63 -10.98
The status of key business in terms of product business
Bleaching,
printing and
dyeing 949 971 -2.32 -64.42 -65.05 1.84
Lease 299 190 36.45 -26.89 -11.63 -10.98
(III) The profit structure and key business structure in the report period much compared with the previous
report period.
1. The operating profit in the report period (RMB – 4.42 million) decrease loss by RMB3.04 million over
the same period of the previous year (RMB – 4.42 million). The profit structure is as follows:
Items
Amount
of current
period
Proportio
n to
operating
profit %
Amount of
same period of
previous year
Proporti
on to
operatin
g profit
%
Main reason for change
Profit from main
operation
87 -63.04 83 -18.78 No big change of business volume
Selling expenses 115 -83.33 139 -31.45 Expenditure control by sales department
Administrant
expenses
306 -221.74 550
-124.4
3 Cut and control of expenditure
Financial
expenses
41 -29.71 -120 27.15 Influence of Exchange ratio
Income from change
in fair value
4 -2.90 -5 1.13 Influence of market price fluctuation
Investment income 233 -168.84 -579 131 Operating Payoff of Zhejiang Union Hangzhou
Bay Ventures Company
Income from
subscription of
newly issued stocks
33 -7.47 Influence of Issue of securities
2.key business structure in the report period深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Items In the report
period
（RMB’0000）
The same period of
last year
（RMB’0000）
Increase/decrease
amount
(RMB’0000)
Change
margin (%)
Bleaching, printing and
dyeing 949 2,667 -1,718 -64.42
Lease 299 409 -110 -26.89
The industry proportion from key business.
Items
In the report
period (proportion
%)
The same period of last
year (proportion %)
Increase/decrease
amount %
Bleaching, printing and
dyeing 76.04% 86.70 -10.66
Lease 23.96% 13.30 10.66
The vacant ground and houses that became idle after production suspense were leased.
(IV) The other business activities that have significant influences on the profit in this report period. None.
（V）The income from investment in no joint venture accounted for more than 10% of the Company's net
profit.
Zhejiang Union Hangzhou Bay Ventures Co., Ltd., an affiliated company in which Hong Kong Victor
Onward, a subsidiary of the Company, has invested for long term, earned accumulated earnings of RMB
9,308,540 in the report period. The income of the Company calculated and recognized on equity basis is
RMB 2,327,135, accounting for 171% of net profit for the current period.
（VI）Problems and difficulties occurred in operation
The Company is a traditional printing and dyeing enterprise.The Company has faced the situation of no
main operation. Due to delay of basic construction, Nanjing Factory failed to commence production as
scheduled. There is no sign of improvement of the Company's printing and dyeing business in the near
future and the Company is facing an operation predicament.
III. Investment of the Company in the report period
(1) There were neither funds raised in the report period nor those raised in previous periods whose use
continued in the report period.
(2) There were no projects invested with non-raised proceeds in the report period
IV. The accumulative net profit of the Company for the period from the beginning of the year to the end of the next report
period is estimated to be negative due to income decreased and disposal of materials in stock. The amount of loss is about
RMB 2.8 million to 3.6 million.
V. The management’s remarks on any changes in and results of issues related to the “non opinions” by the
auditors for the previous year.深圳中冠纺织印染股份有限公司 2009 年半年度报告
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(I) Basic information
Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of
emphasized matters for the Company's financial statements for 2008. Basic information of emphasized
matters: Since March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and
dismissed most of workers. And most subsidiaries of the company had stopped production and it maintained
daily operation by house leasing. Shenzhen Victor Onward Textile Industrial Co., Ltd. had disclosed its
improvement measures in Note 15 of Financial Statement, but its sustainable operation ability is still
uncertain. This paragraph does not affect audit opinions that have been given.
(2) Extent of influence of this matter on the Company:
This matter will generate significant influence on the Company's production and operating activities and
continuous development.
(3) The possibility of eliminating this matter and its influence:
Though the transfer of printing and dyeing business has been somewhat delayed, but the overall
relocation plan of the company had not changed. It is still being undertaken step by step, The Company can
eliminate this matter and its influence to a great extent.
(4) Concrete measures
To guarantee the Company's stable operation and continuous development, the Company will
strengthen the management and coordination of engineering construction and try to implement the transfer
plan as soon as possible.
To guarantee the Company's stable operation and continuous development, the Company will
strengthen the management and coordination of engineering construction and try to implement the transfer
plan as soon as possible.
Chapter V. Important Events
I. Particulars about corporate administration
The Company has unceasingly improved its corporate governance structure, established modern enterprise
system, standardized its operation and earnestly conducted governance work strictly according to the
requirements of the Company Law and the Securities Law and relevant laws and regulations of CSRC.
There was no great difference between the actual status of corporate governance and the requirements of
relevant documents of CSRC.深圳中冠纺织印染股份有限公司 2009 年半年度报告
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II. Implementation of profit distribution plan
As approved by 2008 Annual Shareholders' General Meeting held on May 15, 2009, the Company neither
distributed profit for the year 2008 nor capitalized any capital common reserve fund.
III. The Company was not involved in any material lawsuits or arbitrations in the report period.
IV. The Company was not involved any material assets acquisition or disposal and asset reorganization
occurred in the report period.
V. Important related transactions
Pricing of the transactions with related parties has all been based upon the normal market prices.
(1) Related parties’ balance of receivable and payable account
（Unit:RMB）
Name of Related parties
Name of
subject June 30,2009 Decenber 31,2008
Shenye Union(HK) Co., Ltd.
Accounts
receivables 325,507 325,644
Shenzhen Union Property Group Co.,
Ltd.
Other
payable 3,570,390 3,473,200
Union Group**
Other
payable 21,019,459 20,492,359
* Provision has been in full preparation for bad debts
** The fund provided by related parties to the Company is the working capital loan provided by Union
Group and Union Property to Nanhua Company, a subsidiary of the Company.
(2) Mutual credit guarantees with related parties
No
VI. Important contracts and their performance
(I) The Company did not hold in trust or contract for the assets of other companies nor did other companies
hold in trust or contract for the assets of the Company in the report period.
(II) Other material contracts and external guarantees
1. Important loan contracts- Short-term loans
No.
2The occupation of funds of the Company by the controlling shareholder and its subsidiaries: No
(III) Important guarantees:
(1 )In the report period, the Company did not provided the external guarantee mentioned in ZJF (2003) No. 56 Document
issued by CSRC. There was no significant guarantee that was provided in previous periods but continued to be valid in the
report period. The Company will actively implement the gist of ZJF No. 56 Document strictly according to the
requirements of laws and regulations of the Company Law, the Securities Law, Stock Listing Rules and the Articles of
Association of the Company, further standardize the fund transfer between the Company and the controlling shareholder
and other related parties, lower operation risk and protect the legitimate rights and interests of investors.深圳中冠纺织印染股份有限公司 2009 年半年度报告
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(2)The special statement and independent opinions of the independent directors on the external guarantee of the
Company.
According to relevant provisions of the Circular on Certain Issues Relating to Standardization of Fund
Transfer Between Listed Companies and Their Related Parties and Guarantees Provided by Listed
Companies (ZJF (2003) No. 56 Document), the Circular of Strengthening Disclosure of Information about
Fund Occupation and Regulation-violating Guarantee of Listed Companies (SZJFZ (2004) No. 338
Document) and the Circular of Regulating External Guarantees Provided by Listed Companies (ZJF (2005)
No. 120 Document), we hereby make special statement and express opinions on the status of fund
occupation by related parties and external guarantee of the Company in the current period after learning the
condition of the Company and looking up documents:
As of June 30, 2009,According to the result of our prudent investigation，the Company did not provide guarantee to its
controlling shareholder, other related parties of which the Company holds less than 50% equity, any unincorporate entity or
individual against regulations nor did the controlling shareholder and other related parties force the Company to provide
guarantee to others as of the end of the report period. In the report period, The Company Accumulative total and the current
foreign guarantees is zero.
1.Entrustment of asset management
The Company did not entrust others to manage its cash assets in the report period nor did such
entrustment occurred in previous periods continue in the report period.
VII. Other Commitments events
1.As of June 30, 2009, Group has signed a contract but there are still outstanding major agreement total foreign
investment RMB 30 million .Specific conditions are as follows:
Name Investment
amount
Payable
amount
of
investme
nt
Non-payable
amount of
investment
Investmen
t Period
Notes
Investment in
machinery and
equipment in
Nanjing East asia
Textiles Co., ltd
30 million - 30 million
2.The Signed or is ready to carry out the contract of large contracts
As of June 30, 2009,The Group still has signed the agreement but didnotpaylarge amounts of letting contracts total深圳中冠纺织印染股份有限公司 2009 年半年度报告
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RMB 1.71 million. Specific conditions are as follows:
Name Contracts
amount
Payable
amount of
investment
Non-payab
le amount
of
investment
Investme
nt Period
Notes
The
allocation of
production
equipment as
a whole
works
1,710,000 855,000 855,000
Not because of the
other production
sites can not be
completed relocation
3.According to the signed contract or provision to carry lease contract and financial impact.
On June 30, 2009(T), According to the signed irrevocable contract for operating lease, the lowestrent to be paid
in the future is as follow:
Period Business lease
T+1 year 197,898
T+2 years -
T+3 years -
Over T+3 years -
Total 197,898
4. Except for the events described above, By June 30, 2009,the Group has no other significant
commitment events.
VII. Other material events
1.We purchased new shares with self RMB 10 million funds in report term,As of the report term, and
investment not earnings
2.The Company's operation period will expire on March 4, 2009. The land for the factory building and
office building located at 26 Kuipeng Road, Baishigang, Kuichong Town, Longgang District, Shenzhen,
was leased and the lease term will expire on March 31, 2009. According to the city planning of Shenzhen
Municipal Government, printing and dyeing business for textile industry is no longer allowed in this area.
The Company suspended production for rectification from March 2007.
The Company is actively looking for the method of business transfer or transformation. It plans to invest in
Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery and equipment. The
Company established Shenzhen East Asia Company, a subsidiary engaged in trade. It does not have plan for
operation termination or bankruptcy liquidation.
3. Indexe for important information
The above information were also all published in Securities Times and Hong Kong Commercial
Daily and www.cninfo.com.cn.深圳中冠纺织印染股份有限公司 2009 年半年度报告
17/86
Date No. Name of announcement
January 21, 2009 2009-0525 Announcement of shareholders'
share sale
February 24,2009 2009-0526 Announcement about abnormal
fluctuation of stock trading
April 20, 2009 2009-0527 Announcement about abnormal
fluctuation of stock trading
April 23, 2009 2009-0528 Annual report 2008 and its
summary
April 23, 2009 2009-0529 Announcement of the fifth board
of Directors
April 23, 2009 2009-0530 Announcement of the fifth
meeting of the fifth Supervisiory
Committee
April 23, 2009 2009-0531 Announcement of risk caution of
delisting of the Company's stocks
April 23, 2009 2009-0532 Notice on holding the
Shareholders General Meeting
2008
April 23, 2009 2009-0533 The First Quarterly Report 2009
April 23, 2009 2009-0534 Forenotice of loss
May 7, 2009 2009-0535 Announcement of increasing
provisional proposals for 2008
annual shareholders' general
meeting
May 18, 2009 2009-0536 Annuncement of Resolutions of
the shareholders’ general meeting
in 2008
June 27, 2009 0537 Prompting announcement of sale
restriction cancellation of
restricted shares
4. The registration form of acceptance of investigation, communication and interview in the report period for future
reference
Reception
date
Reception plane Reception Mode Reception
Object
Discussion issue and offered
information
April 23, 2009
Director &
Secretary
office
Telephone
communication Investor Inquiry about the Company's
operating status
May 27,2009
Director &
Secretary
office
Telephone
communication Investor
Inquiry about the Company's
whether the Company has any
plan for reorganization
1. Sale restriction cancellation of restricted shares held after share holding structure reform in the report深圳中冠纺织印染股份有限公司 2009 年半年度报告
18/86
period
The sale restriction of all restricted A shares held by relevant original shareholders holding non-negotiable
shares in A share market including Union Holding Co., Ltd. and Shenzhen Textile(Group) Holding Co., Ltd.
after share holding structure reform was cancelled on June 29, 2009. The above information were also
all published in Securities Times and Hong Kong Commercial Daily and www.cninfo.com.cn.
(Announcement No.: 2009-0537)
IX. In the report period, the Company, its board of directors and its directors were not investigated by
CSRC, administratively punished or publicly criticized by CSRC, punished by other administrative
departments or publicly condemned by stock exchange.
Chapter VI. Financial Report
Shenzhen Victor Onward Textile Industrial Co., Ltd.
Balance Sheet
June 30, 2009 Unit:RMB
June 30, 2009 December 31, 2008
Assets Consolidated Parent Company.
Consolidated Parent Company.
Current asset：
Monetary fund 63,658,478 30,771,880 61,368,428 30,750,018
Settlement provision 79,496 36,687
Outgoing call loan 850,000
Trading financial
assets 1,431,877
266,582
2,746,095
714,042
Bill receivable 1,807,632 1,815,897
Account receivable 157,707 91,087
Prepayments 635,193 82,680,687 614,673 82,236,725
Insurance receivable 2,781,583 2,624,584 3,510,747 2,625,685
Reinsurance
receivable
Provisions of
Reinsurance contracts
receivable
Interest receivable 70,551,966 116,343,733 71,033,614 116,326,470
Dividend receivable
Other account
receivable 338,472 207,255
Repurchasing of
financial assets深圳中冠纺织印染股份有限公司 2009 年半年度报告
19/86
Inventories
Non-current asset due
in 1 year 49,491,623 39,958,087 47,184,759 39,974,858
Other current asset 46,387,535 6,786,120 48,165,784 6,972,363
Total of current assets 22,694,820 18,419,493 22,737,791 18,441,088
Non-current assets：
Loans and payment
on other’s
behalf
disbursed
Disposable financial
asset
Expired investment in
possess
Long-term receivable
Long term share
equity investment 3,593,139 3,594,648
Property investment
Fixed assets
Construction in
progress
Engineering material 122,505,589 65,163,700 121,890,237 65,388,309
Fixed asset disposal 193,057,555 181,507,433 192,923,851 181,714,779
Production physical
assets
Gas & petrol
Intangible assets
R & D petrol
Goodwill
Long-germ expenses
to be amortized
Differed income tax
asset
Other non-current
asset
Total of non-current
assets
Total of assets
Current liabilities
Short-term loans
Loan from Central
Bank
Deposit received and
hold for others
Call loan received
Trade off financial
liabilities
Bill payable
Account payable
Advance payment深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Selling of
repurchased
financial assets
Fees and
commissions
receivable
Employees’ wage
payable
Tax payable
Interest Payable
Dividend Payable
Other account
payable
Reinsurance fee
payable
Insurance contract
provision
Entrusted trading of
securities
Entrusted selling of
securities
Non-current liability
due in 1 year
Other current liability
Total of current
liability
Non-current
liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax
liability
Other non-current
liabilities
Total of non-current
liabilities
Total of liability
Owners’ equity
Share capital
Capital reserves
Less：Shares in stock
Special reserve
Surplus reserves
Common risk
provision
Undistributed profit深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Different of foreign
currency translation
Total of owner’s equity
belong to the parent
company
Minor shareholders’
equity
Total of owners’ equity
Total of liabilities and
owners’ equity
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Shenzhen Victor Onward Textile Industrial Co., Ltd.
Consolidated Balance Sheet（Con）
June 30, 2009 Unit:RMB
Liabilities and owners’ June 30, 2009 December 31, 2008
equity Consolidated Parent Company.
Consolidated Parent Company.
Current Liabilities
Short-term loans
Bill payable
Accounts payable 5,943,216 788,927 6,175,741 1,867,796
Advance payment 5,377,418 5,318,298 5,281,103 2,464,838
Salaries payable to Staff 558,574 485,487 599,884 560,676
Taxes payable 4,725,578 3,601,763 4,551,693 3,864,340
Dividends payable 1,322,182 1,322,737
Other payable 30,935,644 462,291 30,064,983 720,894
Non-current liabilities
due in 1 year
Other current liabilities 1,454,989 1,137,817 1,137,304 1,137,304
Total current liabilities 50,317,601 11,794,583 49,133,445 10,615,848
Non-Current liabilities:
Long-term loan 1,604,778 1,674,164
Long-term payable 9,228,347 9,232,220
Special payable 909,902 909,902 910,284 910,284
Accrued liabilities
Deferred income tax
liabilities 1,015,523 3,517,879 1,015,950 3,519,356
Other Non-current
liabilities
Total Non-current
liabilities 12,758,550 4,427,781 12,832,618 4,429,640
Total liabilities 63,076,151 16,222,364 61,966,063 15,045,488
Shareholders’ Equity
Share capital 169,142,356 169,142,356 169,142,356 169,142,356
Capital surplus 39,325,935 31,606,598 39,194,631 31,606,598
Less: Shares in stock
Surplus reserves 26,309,287 26,309,287 26,309,287 26,309,287
Common risk
provision
Reserved profit -117,076,394 -69,937,022 -115,810,517 -68,418,602
Different of foreign
currency translation 11,468,348 8,163,850 11,237,577 8,029,652
Total of owner’s equity
belong to the parent
company 129,169,532 165,285,069 130,073,334 166,669,291
Minor shareholders’
equity 811,872 884,454深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Total of owners’ equity 129,981,404 165,285,069 130,957,788 166,669,291
Total of liabilities and
owners’ equity 193,057,555 181,507,433 192,923,851 181,714,779
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
Shenzhen Victor Onward Textile Industrial Co., Ltd.
Profit statement
Unie:RMB
January-June 2009 January-June 2008
Items Consolida
ted
Parent
Company
Consolidate
d
Parent
Company
I. Total Operating income 12,487,503 4,764,455 30,760,857 13,586,313
Including：Operating income 12,487,503 4,764,455 30,760,857 13,586,313
II. Total Operating cost 16,236,179 6,307,134 29,332,032 9,346,269
Including：Operating cost 11,614,318 4,110,580 29,929,555 17,314,731
Operating taxes and extras
Sales expenses 1,147,721 1,392,540
Administrative expenses 3,061,042 2,861,603 5,502,329 2,149,067
Financial expenses 413,098 -665,049 -1,204,276 -3,829,413
Loss of devaluation of assets -6,288,116 -6,288,116
Add：Changing income of fair value 42,833 -53,076 8,818
Investment income 2,328,987 -5,794,625 324,006
Including：Investment income on affiliated
company and joint venture
III. Operating profit -1,376,856 -1,542,679 -4,418,876 4,572,868
Add：Non-operating income
Less：Non-operating expenses 13,716
Including：Disposal loss of non-current
assets
IV. Total profit -1,358,103 -1,518,420 -4,452,871 4,559,152
Less：Income tax expenses
V. Net profit -1,358,103 -1,518,420 -4,452,871 4,559,152
Net profit attributable to the Parent
company -1,265,877 -4,296,620深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Minority shareholders’ gain and losses -92,226 -156,251
VI. Earnings per share
（i）Basic earning per share
-0.01
-0.03
（ii）Diluted earning per share
-0.01
-0.03
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Shenzhen Victor Onward Textile Industrial Co., Ltd.
Cash flow statement
Unit:RMB
January –June 2009 January-June 2008
Items
Consolidate
d
Parent
Company Consolidated
Parent
Company
I.Cash flows arising from operating
activities
Cash received from sales of goods
and supply of labor
15,807,003 7,255,478 32,124,481 16,684,708
Net Increase of Disposition transactional
financial assets 0 0 324,006 324,006
Rebated taxes received 1,282,632 468,417 5,559,006 366,473
Other business related cash receipts 3,254,734 1,473,996 1,676,420 2,514,880
Subtotal of cash flow in from
operating activity 20,344,369 9,197,891 39,683,913 19,890,067
Cash paid for purchase of goods and
reception of labor services 10,333,324 5,815,897 21,766,428 9,236,525
Cash paid to and for employees 1,848,412 992,055 2,245,352 1,000,087
Taxes paid 1,200,808 589,233 1,433,726 628,873
Other business related cash
payments
4,568,471 1,813,764 2,995,431 2,551,440
Subtotal of cash flow out from
operating activity
17,951,015 9,210,949 28,440,937 13,416,925
Net cash flows arising from
operating activities 2,393,354 -13,058 11,242,976 6,473,142
II. Cash flow arising from investment
activities
Cash received from recovery of
investment
Cash received from investment income 1,777 0 4,775
Cash received from disposal of fixed
assets, intangible asset and other
long-term assets
39,669 30,854
Proceeds from sale of subsidiaries
and other operating units
Other cash received relating to
investment activities
Sub total of cash inflows 41,446 30,854 4,775
Cash paid for acquiring fixed
assets, intangible assets and other
long-germ assets
68,684 80,197
Cash paid at investment
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
activities
Subtotal of cash outflow due to
investment activities 68,684 0 80,197
Net cash flow generated by
investment -27,238 30,854 -75,422
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司 2009 年半年度报告
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Shenzhen Victor Onward Textile Industrial Co., Ltd.
Cash flow statement(Con)
Unit:RMB
January –June 2009 January-June 2008
Items
Consolidated
Parent
Company Consolidated
Parent
Company
III.Cash flow generated by
financing
Cash received as investment
Including: Cash received as
investment from minor
shareholders
Cash received as loans
Cash received from bond
placing
Other financing –related ash
received
Sub-total of cash inflow
from financing activities
Cash to repay debts
Cash paid as dividend, profit,
or interests
Including: Dividend and
profit paid by subsidiaries to
minor shareholders
Other financing-related cash
received
Subtotal of cash outflow due to
financing activities
Net cash flow generated by
financing
IV. Influence of exchange rate
alternation on cash and cash
equivalents
-76,066 4,066 -2,364,796 -1,149,922
V. Net increase of cash and cash
equivalents 2,290,050 21,862 8,802,758 5,323,220
Add: balance of cash and cash
equivalents at the beginning of
term
61,368,428 30,750,018 52,656,852 31,467,687
VI. Balance of cash and
cash equivalents at the
end of term
63,658,478 30,771,880 61,459,610 36,790,907
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司 2009 年半年度报告
27/86深圳中冠纺织印染股份有限公司 2008 年半年度报告
28/86
Statement on Change in Owners’ Equity(Consolidated)
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2009 Unit :RMB
Items Share Capital Capital
reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provisions
Attrbutable
profit
Difference Of
foreign exchange
Minor
shareholders’
equity
Total of
owners’
equity
I.Balance at the end of last year 169,142,356 39,194,631 - 26,309,287 - -115,810,517 11,237,577
Add: Change of accounting policy -
Correcting of previous errors -
Other 169,142,356 39,194,631 - 26,309,287 - -115,810,517 11,237,577 884,454 130,957,788
II.Balance at the beginning of current year - 131,304 - - - -1,265,877 230,771 -72,582 -976,384
III.Changed in the current year -1,265,877 -92,226 -1,358,103
（I） Net profit - 131,304 - - - - 230,771 19,644 381,719
（II） Gains losses accounted into
owners’ equity directly 131,304 131,304
I.Changed in fair value of sellable
financial assets, net -
2. Influence of change in other owners’
equity of invested enterprises on equity
basis
-
3．Influence of income tax related to
owners’ equity items
230,771 19,644 250,415
4．Other - 131,304 - - - -1,265,877 230,771 -72,582 -976,384
Total of (I) and (II) -
（III） Investment or decreasing of
capital by owners -
1.Investment by owners -
2．Amount of shares paid and
accounted as owners’ equity -
3．Other -
（IV） Profit allotment -
1．Providing of surplus reserves -
2.Providing of common risk provisions -
3．Allotment to the owners -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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4．Other -
（V） Internal transferring of owners’
equity
-
1．Capitalizing of capital reserves -
2．Capitalizing of surplus reserves -
3．Making up losses by surplus reserves -
4．Other 169,142,356 39,325,935 - 26,309,287 - -117,076,394 11,468,348 811,872 129,981,404
IV. Balance at the end of this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
Statement on Change in Owners’ Equity(Consolidated)
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2008 Unit :RMB
Items Share Capital Capital
reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provisions
Attrbutable
profit
Difference Of
foreign exchange
Minor
shareholders’
equity
Total of
owners’
equity
I.Balance at the end of last year 169,142,356 43,881,067 26,309,287 -89,853,184 20,122,586 872,829 170,474,941
Add: Change of accounting policy -
Correcting of previous errors -
Other 169,142,356 43,881,067 - 26,309,287 - -89,853,184 20,122,586 872,829 170,474,941
II.Balance at the beginning of current
year - -296,836 - - - -4,296,620 -6,061,103 -204,668 -10,859,227
III.Changed in the current year -4,296,620 -156,251 -4,452,871
（I） Net profit - -296,836 - - - - -6,061,103 -48,417 -6,406,356
（II） Gains losses accounted into
owners’ equity directly -296,836 -296,836
I.Changed in fair value of sellable
financial assets, net -
2. Influence of change in other owners’
equity of invested enterprises on equity
basis
-深圳中冠纺织印染股份有限公司 2008 年半年度报告
30/86
3．Influence of income tax related to
owners’ equity items -6,061,103 -48,417 -6,109,520
4．Other - -296,836 - - - -4,296,620 -6,061,103 -204,668 -10,859,227
Total of (I) and (II) -
（III） Investment or decreasing of
capital by owners -
1.Investment by owners -
2．Amount of shares paid and
accounted as owners’ equity -
3．Other -
（IV） Profit allotment -
1．Providing of surplus reserves -
2.Providing of common risk
provisions -
3．Allotment to the owners -
4．Other -
（V） Internal transferring of owners’
equity -
1．Capitalizing of capital reserves -
2．Capitalizing of surplus reserves -
3．Making up losses by surplus
reserves -
4．Other 169,142,356 43,584,231 - 26,309,287 - -94,149,804 14,061,483 668,161 159,615,714
IV. Balance at the end of this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司 2008 年半年度报告
31/86
Statement on Change in Owners’ Equity(Parent Company)
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2009 Unit :RMB
Items Share Capital Capital
reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provisions
Attrbutable
profit
Difference Of
foreign exchange
Total of
owners’
equity
I.Balance at the end of last year 169,142,356 31,606,598 - 26,309,287 - -68,418,602 8,029,652 166,669,291
Add: Change of accounting policy -
Correcting of previous errors -
Other 169,142,356 31,606,598 - 26,309,287 - -68,418,602 8,029,652 166,669,291
II.Balance at the beginning of current year - - - - - -1,518,420 134,198 -1,384,222
III.Changed in the current year -1,518,420 -1,518,420
（I） Net profit - - - - - - 134,198 134,198
（II） Gains losses accounted into
owners’ equity directly -
I.Changed in fair value of sellable
financial assets, net -
2. Influence of change in other owners’
equity of invested enterprises on equity
basis
-
3．Influence of income tax related to
owners’ equity items
134,198 134,198
4．Other - - - - - -1,518,420 134,198 -1,384,222
Total of (I) and (II) -
（III） Investment or decreasing of
capital by owners -
1.Investment by owners -
2．Amount of shares paid and
accounted as owners’ equity -
3．Other -
（IV） Profit allotment -
1．Providing of surplus reserves -
2.Providing of common risk provisions -
3．Allotment to the owners -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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4．Other -
（V） Internal transferring of owners’
equity
-
1．Capitalizing of capital reserves -
2．Capitalizing of surplus reserves -
3．Making up losses by surplus reserves -
4．Other 169,142,356 31,606,598 - 26,309,287 - -69,937,022 8,163,850 165,285,069
IV. Balance at the end of this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
Statement on Change in Owners’ Equity(Parent Company)
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2008 Unit :RMB
Items Share Capital Capital
reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provisions
Attrbutable
profit
Difference Of
foreign exchange
Total of
owners’
equity
I.Balance at the end of last year 169,142,356 31,606,598 - 26,309,287 - -58,671,452 18,799,830 187,186,619
Add: Change of accounting policy -
Correcting of previous errors -
Other 169,142,356 31,606,598 - 26,309,287 - -58,671,452 18,799,830 187,186,619
II.Balance at the beginning of current
year - - - - - 4,559,152 -11,584,079 -7,024,927
III.Changed in the current year 4,559,152 4,559,152
（I） Net profit - - - - - - -11,584,079 -11,584,079
（II） Gains losses accounted into
owners’ equity directly
-
I.Changed in fair value of sellable
financial assets, net -
2. Influence of change in other owners’
equity of invested enterprises on equity -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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basis
3．Influence of income tax related to
owners’ equity items -11,584,079 -11,584,079
4．Other - - - - - 4,559,152 -11,584,079 -7,024,927
Total of (I) and (II) -
（III） Investment or decreasing of
capital by owners -
1.Investment by owners -
2．Amount of shares paid and
accounted as owners’ equity
-
3．Other -
（IV） Profit allotment -
1．Providing of surplus reserves -
2.Providing of common risk
provisions -
3．Allotment to the owners -
4．Other -
（V） Internal transferring of owners’
equity -
1．Capitalizing of capital reserves -
2．Capitalizing of surplus reserves -
3．Making up losses by surplus
reserves
-
4．Other 169,142,356 31,606,598 - 26,309,287 - -54,112,300 7,215,751 180,161,692
IV. Balance at the end of this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
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1. Basic Information of the Company
Shenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the
Company"), grew out of the Xingnan Printing Factory Co., Ltd, founded in 1980, was the
first wholly foreign-owned enterprise in Shenzhen. In April 1984, Xingnan Printing
Factory Co., Ltd was changed into foreign joint venture, and was renamed Shenzhen
Victor Onward Textile Industrial Co., Ltd. . On November 19, 1991, the Company was
reorganized into a joint stock limited company and renamed Shenzhen Victor Onward
Textile Industrial Co., Ltd. pursuant to the approval of Shenzhen Municipal Government.
The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and
domestically listed foreign investment shares ("B shares ,stock code: 200018") issued by
the Company were listed on Shenzhen Stock Exchange in 1992.
By June 30, 2009, the total share capital was 169,142,356 million shares, of which
circulating A-share 99,720,453 million shares, circulating B-share 69,421,903 million
shares, of which Union Holdings Co., Ltd. (hereinafter referred to Union Holdings )
holding 43,141,032 shares, accounting for 25.51% of the total equity, is the controlling
shareholder of the company, Union Development Group Co., Ltd. (hereinafter referred to
Union Group)holding 5,948,681 shares, accounting for 3.52% of the total equity, Union
Group holds 31.32% of equity of Hualian Holdings and has the right to control Union
Holdings, thus Union Group is the actual controller of the Company.
By June 30, 2009, Victor Onward printing and dyeing (Hong Kong) Co., Ltd.
(hereinafter referred to as "Hong Kong Victor Onward"), Hong Kong Victor Onward
Digital Printing Co., Ltd. (hereinafter referred to as "Victor Onward Digital Printing"),
Shengzhong Industrial Co., Ltd. (hereinafter referred to as "Shengzhong") ,Shenzhen
East Asia Victor onward Holding (hereinafter referred to as “East Asia Company)and
Shenzhen Nanhua Printing and Dyeing as well as its wholly-funded subsidiary Nanhua
Xingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are all subsidiaries of the
Company.
The Group is mainly engaged in the production and processing (printing and dyeing) and sales of
various high-grade fabrics of pure cotton, pure linen, polyester-mixed cotton, linen cotton and mixed
fiber and finished garments. Registered address: 26 Kuipeng Road, Kuiyong Town,
Longgang District, Shenzhen Legal Representative: Hu Yongfeng
II. Basis for the preparation of financial statements深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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The financial statements was prepared on the basis of the Group's continuous operation.
III.Complying with the statements in Accounting Standards for Business Enterprises
The financial statements of the Group comply with the requirements of Accounting
Standards for Business Enterprises, truly reflect the integrity of the financial situation,
operating results and cash flows, and other relevant information of the company.
IV. Accounting policies, accounting estimation and the method of preparing consolidated
financial statements
No changes in accounting policies and estimates happened this year, and no
significant pre-errors were found this year.
V. Accounting policies, accounting estimation and the method of preparing consolidated
financial statements
(1)Fiscal year
The fiscal year of the Group starts on January 1 and ends on December 31 on the
Gregorian calendar.
(2)Standard currency for book keeping
Except for Shenzhen East Asia Company taking RMB as the standard currency for
bookkeeping, the Company and other subsidiaries of the Group all take HKD as the
standard currency for bookkeeping.
(3) Basis for bookkeeping and costing principle
The Group's basis for bookkeeping is accrual system. Except that the financial assets for
transaction, the financial liabilities for transaction, and financial assets available for sale
are accounted by fair value, generally, account by historical cost.
(4) Cash and cash equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for
payment at any time. Cash equivalent refers to the investments with holding period of less than 3
months and strong liquidity that are readily convertible to known amount of cash and subject to
insignificant risk of changes in value.
(5)Foreign currency Convert
（1）Foreign currency Transactions
The foreign currency transactions the Group were accounted according to the
amount of foreign currency on the first day of the current month converting to the amount
of bookkeeping currency. On the balance sheet date, foreign currency monetary items深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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would be converted into RMB by using the spot exchange rate on the balance sheet date,
the conversion differences produced shall be directly included in the current loss and gain
except the exchange differences produced by foreign currency special loans borrowed for
purchasing or production of the assets which meet the capitalization conditions. The
foreign currency non-monetary items measured by fair value shall be converted into
RMB by the spot exchange rate on the fair value date, the conversion differences
produced shall be directly included in current loss and gain as fair value changes. The
foreign currency non-monetary items measured by historical costs shall be converted by
using the spot exchange rate on the transaction date, and its RMB amount will not be
changed.
（2）Foreign currency statement Convert
The financial statements of the company and the subsidiaries making HK dollars as
bookkeeping currency shall be converted into RMB. In the course of conversion, the
assets & liabilities items shall be converted by using the spot exchange rate on the balance
sheet date, the items of shareholders equity except for the retained profit shall be
converted according to the spot exchange rate, the items of incomes and expenses in the
profit statement shall be converted by the approximate exchange rate of spot exchange
rate on the transaction date. The conversion differences of foreign currency statements
produced in the above conversions shall be individually listed under the item of
shareholders equity.
The cash flow in the cash flow statement are converted by the average exchange rate of the
market rates announced in the accounting period. The influences on cash flow from the changes
of exchange rate are separately listed in cash flow statement.
6. Financial assets
(1). Classification of financial assets:
According to investment purposes and economic nature, the financial assets of the Group
can be divided into the financial assets measured by fair value and the changes included in
the current loss and gain, the expired investments held, receivables and financial assets
for sale, the four categories.
1). The financial assets measured by fair value and the changes included in the current
loss and gain: mainly refer to the financial assets for sale in short term, which shall be
listed in balance sheet in transactional financial assets.
2). The expired investments held: refer to the non-derivative financial assets which have
fixed expire date and fixed or determined recovering amount, and the management level
has the intention or ability to hold the assets.
3). Receivables: refer to the non-derivative financial assets which have no quotation in
active market but have fixed or determined recovering amount, including notes
receivable, accounts receivable, interest receivable, dividends receivable and other深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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receivables.
4). Financial assets for sale: include the non-derivative financial assets which are
recognized as for sale when they are initially confirmed, and the financial assets which
are not divided into other categories.
(2) Confirmation and measurement of financial assets:
Financial assets are conducted initial confirmation by at fair value. The relevant expenses
to obtain the financial assets measured by fair value and the changes included in the
current loss and gain shall be included in the current loss and gain, the relevant
transactional expenses of other financial assets shall be the initial confirmation amount.
When the contract right of a financial asset is ended or the risk and reward of ownership
of the financial asset are transferred to the corresponding party, the confirmation of
financial assets shall be ended.
At fair value and changes in their gains and losses included in the current period of
financial assets and financial assets to be sold in accordance with the fair value of
follow-up measures; receivables and investments held to maturity using the effective
interest method to share more than the cost listed.
The changes of fair values of financial assets measured by fair value and the changes
included in the current loss and gain shall be included in the changing loss and gain of fair
value; all the interest and cash dividends obtained during the period holding the assets
shall be confirmed as investment income; upon the disposal of the assets, the differences
between the fair value and initial bookkeeping amount shall be confirmed as investment
loss and gain, and at the same time, the changing loss and gain of fair value shall be
adjusted.
The changes of fair values of financial assets for sale shall be included in equity of
shareholders; during the holding period, the interest accounted by actual interest rate shall
be included in the investment income; the cash dividends of equity tool investment for
sale shall be included in investment income upon the invested unit’s declaration of
distributing dividends; upon the disposal, the differences between the price and book
value deducting the fair value originally included in shareholders equity shall be included
in investment loss and gain.
(3). Impairment of financial assets:
Except for the financial assets measured by fair value and the changes included in
the current loss and gain, on the financial sheet date, the Group will check the book value
of other financial assets on the balance sheet date, if there is objective evidence showing
that impairment has happened on a financial asset, provision for the impairment shall be
drown. If dramatic or non-temporary decline has happened on the financial assets for sale,
the accumulative loss originally included in shareholders equity shall be included in the
impairment loss. The equity tool investments which the impairment loss has been
confirmed and are related to the events of conformation of impairment loss shall be
included in the equity of shareholders. The impairment loss of equity tool investments深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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which have no quotation in the active market and the fair value can not be reliably
measured, will not be transferred back.
1. Provision for bad debts of accounts receivable
Our group’s accounting adopts allowance method for possible loss in bad debts
Taking provision for bad debts using specific cost identification method at year
ending and enter into the current profits and losses. For those accounts with convincing
evidence showing that they are unable to recover indeed, our group will classify it as the
loss in bad debts through prescriptive approval procedures.The provision for bad debts
will be write off.
The individual amount of receivable over 1 million yuan will be recognized as a
major receivable, when there is evidence showing that the Group will not be able to
recover all the money in accordance with the original item of receivable, provision for
bad debt shall be drown according to the differences of future cash flow lower than the
book value after impairment test.
The non-significant single receivables and the receivables without impairment will be
divided into a number of combinations in accordance with credit risk characteristics. The
provision for bad debts to be drown in this year will be accounted to the actual loss rate
with the similar credit risk characteristics in the previous year and combining the present
situations to determine the ratio of provision for impairment of this year. For those
accounts receivable with convincing evidence showing that they are unable or unlikely to
recover, our group will divide it into specific assets portfolio and make a full provision for
bad debts.
The drawing ratio of provisions for bad debts of receivables as follows:
Age Proportion
Winthin 1 year 3%
1-2 years 10%
2-3 years 50%
Over 3 years 100%
The Group shall make special provision for bad debts in respect of other receivables on
case-by-case basis.
8.Inventory
(1)The inventories of the Company include raw materials, work-in-process, finished
products, low-value and easily-worn articles and packing articles and stock goods.
The stock will apply perpetual inventory system, the stock value will be calculated at
actual cost when acquiring. The accounting will adopt weighted average method when
applying for stock or stock issuing. Low value consumbles and packing material will
adopt one-off writing off method for the amortization.深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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Principles for valuation of inventory at the period end and confirmation standards and
drawing method of provision for devaluation of inventories: the inventory at the period
end shall be valuated depending on which is lower between the cost and the realizable net
value; at period end, on the basis of comprehensive checking on inventories, provision for
devaluation of inventory shall be drown on the parts which are not to be recovered. The
provision for devaluation of finished products and big raw materials shall be drown
according to the difference which the cost of individual inventory item higher than the
realizable net value; other raw materials with large quantity and low unit price shall be
drown provision for devaluation according to categories.
Determination of realizable net value of inventory: goods in stock, products in
production and other materials directly for the sale, the amount of the realizable net value
shall be determined according to the estimated sale price deducting the estimated sale
expenses and relevant taxes; the amount of realizable value of material inventory for
production shall be determined according to the estimated sale value of finished products
deducting the estimated cost which will happen before the completion and estimated sale
cost and relevant taxes. The inventory holding for the implementation of sale contract or
service contract, the realizable net value shall be accounted on the basis of contract price;
if the quantity of inventory held by enterprise is bigger than the quantity ordered in the
sale contract, the realizable net value of the excess inventory shall be accounted on the
basis of general sale price.
9. Long-term equity investment
Longterm equity investments mainly include equity investments held by our group and
enable us to take control of / jointly control / significantly influence invested company or equity
investments that invested companies are not under control / jointly controlled / significant
influenced by our group and there is no quotation in active market and fair value can not be
reliably measured.
Joint control means the common control on an economic activity in accordance with the
contract.The determinative basis of joint control is mainly that any cooperative party can not
independently control the production and operating activities of joint venture. The decisions and
policies related to joint venture’s basic operation activities should be congruously agreed by both
cooperative parties.
Significant influence means the right of participation & decision on finance and operation
policy of invested company but can not control these policies making or control it together with
other party.
The determinative basis of significant influence is mainly refer to the situation when our group
directly owned invested company’s voting share or indirectly owned it via subsidiary company
for more than 20% (including 20%) but less than 50% unless there is a clear evidence showing深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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that our group can not participate invested company’s production and operation decision in such
circumstance and can not form a significant influence.
The long-term equity investments obtained through merger of companies under same
control the merger were the owner's equity book value of the shares as a long-term equity
investment of initial investment cost. The long-term equity investments obtained through
merger of companies under different control shall make the fair value which made on the
merger (purchase) to pay the control of the assets or liabilities as the merger cost. On the
merger (purchase) date, in accordance with the merger costs as a long-term equity
investment of initial investment cost.
Apart from the long-term equity investments stated above, the long-term equity
investment obtained by cash, the initial investment obtained by cash will be determined
according to the price actually paid, initial investment costs include the direct costs, tax,
and other necessary expenses to obtaining long-term investment; the long-term equity
investment obtained by issuing equity securities, the initial investment will be determined
according to the fair value of the equity securities issued; the long-term equity
investments invested by investors, the initial investment cost shall be determined
according to contract value; the long-term equity investment obtained by debt
restructuring, non-monetary assets or other methods, the initial investment cost shall be
determined according to the relevant accounting standards.
If the subsidiary uses the cost method to account, adjustment shall be conducted
according to equity method when prepare the consolidated financial statements; the joint
venture and joint venture investment using the equity method; for the long-term equity
investments which have no control or joint control or significant influence and no price in
an active market, the method of cost shall be adopted to account; the long-term equity
investments which have no control or joint control or significant influence, there are
quotations in an active market and the fair value can be reliably measured, shall be
accounted as financial assets for sale.
When adopting cost method in accounting, long term equity investment will be
valued according to initial investment cost, the current investment income were only
limited in distribution amount of accumulated net profit archieved by invested company
after getting investment.The obtained excess portion of distributive profit or cash
dividends declared by invested company compared with above mentioned amount will
be used as the recovery of initial investment cost to offset the book value of investment.
When adopting equity method in accounting, current investment profit and loss are
the deserved or sharable parts from invested company’s net profit and loss archieved in
current year. When confirming the deserved part from invested company’s net profit and
loss, it should be based on the fair value of each identifiable asset of invested company
at the moment of getting investment. Follow our group’s accounting policy and深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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accounting period and offset associated enterprise & joint venture’s intra-group
transactions attributed to invested company according to shareholding ratio.
Confirm it after adjusting the net profit of invested company.
When confirming the net loss that should be allocated from the invested company,
take it as limit that book value of long term equity investment and other long term equities
actually formed to invested company down to zero.besides, if our group has obligation to
bear extra losses to invested company, our group will confirm accrued liabilities
according to obligation expected to undertake. It will be be accounted into current profit
or loss. In case that invested company achieved net profit in later period, our group will
resume confirmed profit sharing amount after using profit sharing amount to make up
unconfirmed loss sharing amount allocated.
For long term equity investment already held in associated enterprise and joint
venture before the date of initial implementation, in case there is any equity investment
difference on debit side,It should further deduct equity investment difference on debit
side based on straight-line amortization in remaining period, then confirm the investment
profit and loss.
10. Investment real estate
Our group’s investment real estate means the buildings had been leased.
Real estates for investment are the real estate for earning rent or capital appreciation or
both, including the land use right leased, the land use right for future transfer, and the
properties leased.
Valuation of investment real estate: the investment real estates are accounted by the cost,
the purchased investment real estates include the cost of the purchase price, related taxes
and fees and other expenses which can be directly attributable to the assets; the costs of
investment real estate self constructed include the necessary expenses to construct the
asset to reach the predicted use state.
The Group adopts the cost method to conduct follow-up measurement on investment
real estates, the building and land use right are accounted devaluations and amortized.
The expected service life, net residual rate and value depreciation rates of investment real
estate are as follows:
Type Evpected useful
life（Year）
Estinated
residual value
rate
Annual depreciation rate（%）
Real estate in
Hongkong
20-50 years
0% 2%-5%
Real estate in
China
20-30 years
10% 3%-4.5%
If the investment real estate is changed to self use, since the date of change, investment
real estate shall be converted into fixed assets or intangible assets. The function of深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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self-use real estate is to earn rent or capital appreciation, then since the date of change, the
fixed assets or intangible assets shall be converted into investment real estate. When the
conversion happens, the book value before the conversion will be the book value after the
conversion.
When the real estate investment is disposed or will never be used, and economic interests
can not be obtained from the disposal, the confirmation of the investment real estate shall
be terminated. The amount of the income from the sale, transfer, disposal of the
investment in real estate deducting the book value and related taxes and fees shall be
included in the current loss and gain.
11. Fixed assets
Standards for the recognition of fixed assets: fixed assets refer to the tangible assets
which have the following characteristics at the same time, namely, held for production of
goods, providing services, leasing or operation and management, and the life span shall
not be more than a year, and the unit value is high.
Classification of fixed assets: houses and buildings, machinery and equipments,
transportation equipments, office equipments and others.
Valuation of fixed assets: the fixed assets shall be measured according to the actual
cost to obtain them, including, the cost of purchasing the fixed assets including the
purchase price, value-added tax, import tariffs and other related taxes, and other expenses
happened to reach the predicted use state; the cost of building the fixed assets, which are
composed of the expenses to reach the predicted use state of the assets; the fixed assets
invested by investors, the value on the contract or agreement shall be the accounting value,
but if the contract or agreement value is not fair, the fair value shall be accounted; the
fixed leased assets, the lower amount of the fair value of leased assets and the present
value of the lowest lease payment shall be as the accounting value.
The later expenditure related to fixed assets including maintenance expense, renewal
and reconstruction expense etc.For those items match fixed assets condition, it will be
accounted into fixed asset cost.for those replaced parts, end the confirmation on its book
value.for items not match the condition of fixed assets confirmation, it will be accounted
into current profit and loss by the time it occurred.
Depreciation methods of fixed assets: in addition to the fixed assets which the
depreciation has been accounted and are still used, the Company will draw depreciation
for all fixed assets. When accounting depreciations, the average life span shall be adopted,
by the unit depreciation rate monthly, and be included in the cost and current expenses of
relevant assets.
The estimated net salvage value rate, classified depreciable life and depreciation
rate of our group’s fixed assets are as follows:
No
Type Evpected useful
life（Year）
Estinated residual
value rate
Annual depreciati
on rate（%）深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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1
Real estate in
Hong
Kong
20-50 years
0% 2%-5%
2
Real estate in
China
20-30 years
10% 3%-4.5%
3
Machinery and
equipment
5-14 years
10% 6%-18%
4
Transportation
Equipment
4-5 years
10% 18%-22.5%
5
Office equipment
and other
5 years
10% 18%
At the end of each year, the Company shall recheck the predicted service life of fixed
assets, the predicted net residual value and depreciation method, if changes happen, then
it shall be treated as accounting estimate.
When the fixed assets were disposed, or expected to be used or the disposal can not have
economic interests, the confirmation of the fixed assets shall be terminated. The income
from the sale, transfer or damage of the fixed assets deducting the book value and related
taxes shall be included in the current loss and gain.
12. Construction in progress
The price of the construction project: determine the costs according to the actual
expenditure on the project. Measure the price of the self-operated projects according to
the direct materials, direct wages, direct construction costs; Measure the turnkey projects
according to the price should be paid on the project; measure the project of equipment
installation according to the value, of the equipment, installation costs, and the
expenditures on the trial operation to determine the project costs. The costs of projects
under construction also include the cost of borrowing to be capitalized and exchange gain
and loss.
The time for the construction project converted to the fixed assets: the fixed assets of the
company reached the predicted state, according to the budget of the project, construction
cost or the actual cost of the project, transfer the fixed assets according to the predicted
price, account the depreciation from the next month on. Upon finishing the procedures,
make relevant adjustment.
13.Borrowing costs
Borrowing costs including loan interest, discount or amortization of premium,
auxiliary expenses and exchange differences caused by foreign currency loans etc. For
the assets purchased & constructed which can be directly attributed to the assets
matching the condition of capitalization or borrowing costs for production, it will start
capitalization when the acquisition and construction or production activities which are深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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necessary to prepare the asset for its intended use or sale have already started. It will
stop capitalization when the acquisition & construction or production of assets meet the
condition of capitalization archieved its intended use or sales status. Other borrowing
costs arising in current period shall be recognized as expenses.
For the interest cost of specifically borrowed loan actually incurred in current period,
after deducting the interest income incurred from unimpaired loan funds deposited in
bank or investment income gained from temporary investment, the balance amount will
be capitalized. The determination of capitalization amount is based on the weighted
average part of accumulative assets disbursement in excess of specifically borrowed
fund by multiplying the weighted average interest rate of the general borrowing occupied.
The assets matching the condition of capitalization means those fixed assets,
investment real estate and stock assets etc. which require purchase & construction or
production activities for quite a long time (usually more than one year) to achieve the
intented status of available for use or sale.
For the assets matching the condition of capitalization, If abnormal interrupt
occurred during purchasing, construction or production processing and interruption time
over than three months continuously.the capitalization on borrowing costs will be
suspended until the restart of purchasing or production activities on assets.
14. Intangible assets
The methods for intangible assets pricing: The intangible assets of the Group include
land use rights and computer software. For the intangible assets purchased, the actual
purchase price was the actual cost; For the intangible assets invested by investors, The
actual cost of intangible assets invested by investors, shall be determined according to the
contract or agreement value, but if the contract or agreement values are not fair, the actual
costs shall be determined according to the fair value.
Methods and duration for intangible assets amortization: The intangible assets
of the Group include land use rights and computer software. The land use rights obtained
by paying the land transfer amount and by purchasing, account the amount according to
the actual purchase price. For the computer software, account on the actual purchase price,
make average amortization according to the predicted service span of 5 years. The
amount of amortization shall be included in the cost and current loss and gain of the
relevant assets according to the beneficiary targets.
At the end of each year, the company shall recheck the service life and amortization
method of the intangible assets which have limited service life, if there are changes,深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
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adjustment shall be conducted. And in each accounting period, the predicted service life
of intangible assets with uncertain service life shall be rechecked, if there is evidence
showing that the service life of intangible assets is limited, then the estimated service life
shall be amortized in the predicted service life.
15. Impairment of non-current assets
The Group will check the long-term equity investments, fixed assets, projects under
construction, intangible assets with certain service life of the subsidiaries, joint
companies and associated companies, when exist the following signs showing that the
assets may have impairment, the Group will conduct impairment test. The intangible
assets without certain service life, whether it has impairment signs, impairment tests shall
be conducted at the end of each year. If the recoverable amount of single asset can not be
tested, it shall be tested on the basis of the asset group the asset belong to or the asset
combination.
After the impairment test, if the book value of the asset exceeds its recoverable amount,
the deficiency is recognized as the impairment loss, upon the confirmation of the above
assets, they will not be transferred back in the following accounting period. The
recoverable amount of the asset refer to the net amount of the fair value of the asset
deducting disposal cost of assets and the present value of the expected future cash flows.
The signs of impairment as follows:
(1). Current market value of assets decreased significantly, the decline is significantly
higher than the decline due to time passage or normal use.
(2) The economic, technical or legal environment of the company and the market of the
assets will have significant change in the current period or in the near future, therefore
negative impact on the enterprise.
(3) Market interest rates or other market return rate of investment in the current period
have been increased, thus affecting the discount rate of the predicted cash flow, and
resulting in the significant reduction in the amount of recoverable assets.
(4) There is evidence showing that the assets were actually obsolete or damaged.
(5). The assets have been or will be idle, ended the use or disposed in advance.
(6). There are evidences of internal report showing that the economic performance of the
assets has been lower than or less than what expected, such as the net cash flow created by
assets or the operating profits (or losses) realized are far below (or above)the expected
amount.
(7). Other signs showing the assets may have or have had impairment.
16. Goodwill
Goodwill refers to the difference of equity investment under the control of the same cost
or merger of enterprises should enjoy more than the cost or a merger of the investment
was the purchase of flats or net assets in order to obtain.
The goodwill related to subsidiaries shall be individually listed in the consolidated深圳中冠纺织印染股份有限公司财务报表附注
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financial statements, the goodwill related to joint companies and associated companies
shall be included in the book value of long-term equity investments.
17.Long-term deferred and prepaid expenses
Our group’s long-term deferred and prepaid expenses means each expense has
been disbursed but it needs amortization in current or later period for more than one year
(excluding one year),these expenses shall be averagely amortized during benefit period.
If long term deferred and prepaid expenses items can not bring profit in later accounting
period, all amortized value of unamortized items shall be included in the current profits
and losses.
18. Employee’s salary
Including wages, bonuses, allowances and subsidies, welfares, social insurance and
housing accumulation fund, union fee and workers’ education fund, and other related
expenses related to obtain services provided by employees.
During the accounting period, workers’ salary shall be recognized as liability, and be
included in relevant cost and expenses according to the beneficiary target of the service
provided by workers, and shall be included in the relevant cost and expenses. The
compensations for the cancelation of workers’ labor relationship shall be included in the
current loss and gain.
19. Anticipation liabilities
If the business related to external guarantee, discount commercial acceptance draft,
pending action or arbitratioin or product quality assurance etc.,at the same time, it also
meets the following conditions, our group will recognize it as a liability: this obligation is
the current obligation undertaking by our group, Fulfilling this obligation may lead to the
outflow of economic benefits from enterprise.
The amount of the obligation can be measured in a reliable way.
Measurement methods of predicted liabilities: predicted liabilities shall be conducted
initial measurement according to the best estimates of related existing liabilities, and
comprehensively consider risks, uncertainties and the time value of money and other
factors relating to contingent events. Time value of money has the greatest influence, the
best estimates shall be determined by future cash outflow. On the balance sheet, recheck
the book value of predicted liabilities, adjust the book value to reflect the current best
estimates if there are any changes.
20. Revenue recognition principle
Our group’s business incomes mainly include income from commodity sales and
income from assets right remising. The income recognition principles are as follows:
The main risks and rewards of ownership of the goods have already been
transferred to the buyer by our group. Our group retains neither continuous management深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
47/86
right that usually keeps relation with the ownership nor effective control over the sold
goods; Income amount can be measured in a reliable way. The relevant economic
benefits may flow into the enterprise. The relevant costs incurred or to be incurred can be
measured in a reliable way.The confirmation on realization of commodity sales income.
21. Lease
Our group divided lease into financing lease and operating lease on inception date
of the lease.
Financing lease means the lease actually transferred all risks and rewords related
to assets property right. As the lessee, on the inception date of the lease, our group will
record the lower figure between fair value of leased assets on inception date of the lease
and the present value of minimum lease payments as entry value of fixed assets
acquired under finance leases, record minimum lease payments amount as the entry
value of long term accounts payable, record the difference between the two itmes as
unrecognized financing expenses.
Operating lease refers to the lease other than financing lease.
As leasee, our group will record the rent as related assets cost or current profit and
loss in each accounting period during the leasing period by using straight-line method.As
leasor, our group will record the rent as income in each accounting period during the
leasing period by using straight-line method.
22. Government subsidies
Government subsidies, when the Group can meet the conditions attached and can receive,
shall be confirmed. If government subsidies are monetary assets, they shall be measured
according to the amount received; the subsidies allocated according to rated standards,
they shall be measured according to the amount receivable. If government subsidies are
non-monetary assets, they shall be measured according to fair value; if the fair value can
not be reliably measured, they shall be measured according to nominal amount (1 yuan).
The government subsidies relating to assets shall be recognized as deferred income, and
be averagely distributed within the service life of relevant assets, and be included in the
current loss and gain. If the government subsidies relating to income are used to
compensate the related expenses and losses, they shall be confirmed as deferred income
and be included in the current loss and gain in the period of confirming relevant expenses.
If used to compensate the relevant expenses and losses happened, they shall be included
in the current loss and gain.
23.Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities shall be confirmed
according to the difference between the tax base of assets and liabilities and their book
value (temporary differences). The loss and tax which can be offset in the future years
shall be recognized as temporary differences to determine the corresponding deferred
income tax assets. On the balance sheet date, deferred income tax assets and deferred
income tax liabilities shall be measured by the predicted application rate.
The Group shall determine the deferred income tax assets produced by the deductible深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
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temporary differences within the amount limit of payable taxes which are likely used to
deduct the temporary differences. The book value of the recognized deferred income tax
assets shall be deducted when the deferred income tax assets produced by the deductible
temporary differences within the amount limit of payable taxes which are likely used to
deduct the temporary differences. When enough payable tax can be obtained, the
deducted amount shall be transferred back.
24.Accounting of income tax
The accounting of income tax of the Group shall use the method of debt of balance sheet.
The income tax expenses include current income tax and deferred income tax. The
current income tax and deferred income tax relating to the transactions and events directly
included in shareholders equity shall be included in shareholders equity, except the book
value of deferred income tax adjustment goodwill, the rest current income tax and
deferred income tax or income shall be included in the current loss and gain.
Current income tax cost refers to the amount of payable income tax which shall be paid to
tax department according to the current transactions and events determined according to
tax provisions; deferred income tax refers to difference between deferred income tax
balance sheet debt in accordance with the law shall be recognized deferred income tax
assets and deferred income tax liabilities in the amount originally confirmed.
25. Corporate consolidation
Corporate consolidation refers to two or more separate companies merge and form a transaction or
event of report subject. The consolidation day or purchase day or the consolidation date of obtaining
the assets or liabilities, shall be confirmed as the date of obtaining the control right of the party being
merged or purchased.
The corporate consolidation under same control: the assets and liabilities obtained by the
consolidation party in the merger shall be measured according to the book value of merged party on
the consolidation day. The difference between the book value of net assets obtained by the
consolidation party and the book value of the consolidation price paid, the capital public reserve shall
be adjusted; if the capital public reserve is not enough to be deducted, the retained earnings shall be
adjusted.
The corporate consolidation under different control: the consolidation cost is the fair value of equity
stocks issued and the assets and debts paid to obtain the control right of the purchased party on the
purchase day. The difference between the consolidation cost and fair value of recognizable net asset,
shall be confirmed as goodwill; if the consolidation cost is smaller than the fair value of recognizable
net asset of the purchased party, the difference shall be included in current loss and gain upon
confirmation.
26.Determination of fair value of financial tools
If the financial tools exit in the active market, the fair value shall be determined according to the
price in active market. If the financial tools do not exit in the active market, the fair value shall be
determined by value estimating technologies. Value estimating technologies include the price
used in market transactions, referring the current fair value of other financial assets which are深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
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actually the same, cash flow discount and option pricing model. When use the value estimating
technologies, the market parameters shall be used as much as possible, and the parameters which
are related to the Group will not be used.
27.Methods for compilation of consolidated financial statements
(1). Principles to determine the scope of merger: the Group will include the subsidiaries
which have actual controlling right and the subjects which have special purpose into the
scope of consolidated financial statements.
(2). Accounting methods adopted in consolidated financial statements: the consolidated
financial statements of the Group shall be compiled in accordance with Enterprise
Accounting Standards No. 33 - Consolidated Financial Statements and the related
provisions, the major internal transaction in the scope of consolidation and transactions
shall be offset. The part of shareholders equity of the subsidiary which does not belong to
the parent company, shall be individually listed as equity of minority shareholders in the
consolidated financial statement.
If the accounting policy and accounting period of the subsidiary and the company are not
consistent, when compile consolidated financial statement, the financial statement of the
subsidiary shall be adjusted according to the accounting policy and accounting period of
the company.
For the subsidiary obtained by corporate merger under different control, when prepare
consolidated financial statements, the individual financial statement shall be adjusted on
the basis of fair value of the net assets on the purchase day; for the subsidiary obtained by
corporate merger under same control, it will be taken as having been existed at the year
beginning, its assets, liabilities, operating results and cash flow shall be consolidated in
the financial statement according to original book value since the year beginning of the
consolidation period.
VI. Taxation
The Group is subject to the following taxes and tax rates:
1. Corporate income tax
The interest rate of corporate income tax of the company and subsidiaries in China
mainland is 25%, According to the notice issued by state council on Dec.26th,2007
Guofa[2007]39,< Notice about implementation of transitional preferential policies on
corporate income tax >,The corporate income tax of our group and subsidiary companies in
mainland China will be graduately shifted from 15% to 25%, transitional corporate income tax
rate 20% will be applied for all of them in 2009. the interest rate of the income from Hong
Kong of the subsidiaries in Hong Kong is 16.5%.
2. VAT
The sales interest rate of processing income and sale income of printing products of
subsidiaries in China mainland and the company is 17%, export products will be adopted
the method of "free, credit and rebate", the tax rebate rate is 11% in January 2009,the tax深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
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rebate rate is 15% in February 2009 and the tax rebate rate is 16% in April –June 2009.
The purchase of raw materials such as VAT input tax paid by the amount of output tax
can be offset, the tax rate is 17%. Of which: the input tax of VAT for export products can
pply for payment of rebate. VAT taxable amount is the balance of the current output tax
offseting the current input tax.
The subsidiaries of the Company in Hong Kong do not need to pay VAT.
3. Business tax
The housing rental income of the company and Nanhua Printing & Dyeing Company
shall be applied to business tax, applicable rate 5%.
The subsidiaries of the Company in Hong Kong do not need to pay business tax.
4. City construction tax and education additional expenses
City construction tax of the Company is based on the value-added tax, business tax,
applicable interest rate 1%, the company does not need to pay education additional
expenses..
The subsidiaries of the company in Hong Kong do not need to pay City construction tax
and education additional expenses, subsidiaries in mainland China, the applicable City
construction tax rate is 1%, applicable education additional tax rate of 3%.
5. Property tax
70% of the original value of property of the subsidiaries of the Company in China
mainland shall be the tax basis, applicable tax rate 1.2%, subsidiaries in Hong Kong do
not pay property taxes.深圳中冠纺织印染股份有限公司财务报表附注
2009 年1 月1 日至2009 年6 月30 日
（本财务报表附注除特别注明外，金额单位均为人民币元）
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VII.Corporation Consolidation and Consolidation Financial statement
（1）Main subsidiaries
Name Registration Proportion %
plance
quality Registered
capital
Business
scope
Investment
amount Direct Indirect
Vote right
Proportion
%
Whether
consolidated
Remark
Kong Victor
Onward Co.
HK Trade
2,400,002
（HKD）
Purchase of raw materials,
marketing of printed and dyed
woven fabrics, investment and
holding business
2,400,002
（HKD）
100%
100% Yes 1
Victor Onward
Digital
Printing
HK
Production
2,000,000
（HKD）
Digital printing
1,500,000
（HKD）
75% 75% Yes 2
Shengzhong
Co.
HK
Trade
1,000,000
（HKD）
Sales of corduroy, dyed goods
and printed cloth
1,000,000
（HKD）
100% 100% Yes 3
Nanhua Co Shenzhen Production
85,494,700
（HKD）
Production and sales of printed
cloth and dyed cloth
16,874,255
HKD+2,835,100
RMB
51.16% 14.62% 65.78% Yes 4
Xingye Co. HK Trade
10,000
（HKD）
Sales of printed cloth and dyed
cloth
10,000
（HKD）
100% 100% Yes 5
Shenzhen
East Asia
Co.
Shenzhen Trade
3,000,000
(RMB)
Textilet,Printing
and dyeing industry
and Raw
materials ,Machinery
equipment and other
fabrics
1,530,000
(RMB)
51%
51% Yes 6深圳中冠纺织印染股份有限公司 2008 年半年度报告
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1. The Company invested 2,400,002 Hong Kong dollars in 1984 to establish Hong Kong Victor Onward
Company in Hong Kong.
2. Digital printing company was established in April 18, 2002, registered capital 2 million Hong Kong
dollars, Hong Kong Victor Onward holding 75% equity, ATEX DEVELOPMENT (HONG KONG) LTD holding 25%
equity.
3. Shengzhong Company was established in November 9 1993, registered capital 1 million Hong
Kong dollars, Hong Kong Victor Onward holding 100% equity.
4. Nanhuan Company was established in July 21, 1988, registered capital 85.49 million Hong Kong
dollars, by June 30, 2009 the shareholding structure as follows:
Name of investor
December 31,
2009
Proportion June 30, 2009 Proportion
Shenzhen Nanyou （ Group ）
Company 3,129,106.02 3.66% 3,129,106.02 3.66%
Shenye Union
(Hongkong)Co., Ltd. 26,127,180.32 30.56% 26,127,180.32 30.56%
The Company 43,739,088.52 51.16% 43,739,088.52 51.16%
Hong Kong Victor Onward Co. 12,499,325.14 14.62% 12,499,325.14 14.62%
Total 85,494,700.00 100.00% 85,494,700.00 100.00%
5. Nanhua Company invested 10,000 yuan to establish Industry Company in Hong Kong in December
1996. Nanhua Company holding 100% equity.
6. Shenzhen East Asia Company was established in February 28,2007, registered capital 3 million yuan, The
Company investted 1.53 million yuan and holding 51% equity , Nanjing East Asia Company invesed 1.47
million yuan and holding 49% equity.
(2) Change of consolidation scope
In the report period, Not change of consolidation scope.
(3) Translation of foreign currency statements
Except that Shenzhen East Asia uses RMB as bookkeeping base currency, our company and all other
subsidiary companies use HKD as bookkeeping base currency.Translation of financial statements is RMB
reflection. Please refer to this note V. 5 for the translation of foreign currency financial statements.Among them,
the beginning spot exchange rate of HKD / RMB is 0.88189. The ending spot exchange rate is 0.88153, the
approximate exchange rate of spot exchange rate adopted current average exchange rate 0.89171.
VIII. Notes to the main items of consolidated financial statements and the Company's financial
statements深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Unless otherwise specified in below disclosed financial statement data, the “beginning of period” means Jan.1st
2009. The “ending of period” means Jun.30th 2009, the “current period” means the period from Jan.1st 2009 to
Jun. 30th 2009, the “same period last year” means the period from Jan.1st 2008 to Jun. 30th 2008. The currency
unit is Renminbi yuan.
1.Monetary Capital
June 30, 2009 December 31, 2008
Items Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
Stock cash 139,348 117,278
RMB 135,018 1 135,018 117,028 1 117,028
HKD 3,277 0.88153 2,888 283 0.8819 250
USD 211 6.8319 1,442
Bank deposit 53,333,380 51,085,519
RMB 26,651,521 1 26,651,521 24,298,396 1 24,298,396
HKD 30,262,880 0.88153 26,677,637 30,342,936 0.8819 26,759,435
USD 618 6.8319 4,222 4,051 6.8346 27,688
Other monetary
capital 10,185,750 10,165,631
RMB 10,152,366 1 10,152,366 10,133,914 1 10,133,914
HKD 37,870 0.88153 33,384 35,964 0.8819 31,717
Total 63,658,478 61,368,428
Funds in other currencies (RMB) mainly kept in the securities of the Group companies for the purchase of
new shares issued by drawing lots of money does not exist at the end of restrictions on the use of monetary
funds.
2.Financial assets for transection
Items June 30, 2009 December 31, 2008
Equity tool investment for
transaction. 79,496 36,687
Total 79,496 36,687
* Transactional equity tools are the shares which are to be cashed at any time purchased by the
subsidiary of the company Hong Kong Victor Onward Company, priced by fair value, Changed
Losses RMB 42,809 , its cash has no major restrictions.
3.Bill receivable
Type June 30, 2009 December 31, 2008
Bank acceptance 850,000
Total 850,000
4.Account receivable
（1） Age of account receivable深圳中冠纺织印染股份有限公司 2008 年半年度报告
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June 30, 2009 December 31, 2008
Items
Amount Proportion%
Provision for
bad debts Amount Proportion%
Provision for
bad debts
Within
1 year
2,519,065 17.77 75,572 4,600,129 29.69 138,004
1－2
years 766,060 5.41 76,606 18,866 0.12 1,734,896
2－3
years 5,729,320 40.42 7,430,390 5,712,851 36.88 5,712,851
Over
3
years 5,158,310 36.40 5,158,310 5,160,475 33.31 5,160,475
Total 14,172,755 100 12,740,878 15,492,321 100 12,746,226
** The reason that original value of the accounts receivable with aging 2-3 years is less than the amount of
provision for bad debts is because we are going to terminate our subsidiary company Shengzhong Company.
For accounts receivable RMB 1,719,936, our company had prepared full provision for bad debts. The
consolidation offset the other accounts receivable under such item.It did not offset corresponding provision for
bad debts.
（2）Risk classification of accounts receivable
June 30, 2009 December 31, 2008
Book Balance
Provision for
bad debts
Book Balance
Provision for
bad debts
Items
Amount Proportion% Amount Amount Proportion% Amount
Receivables with
large individual
amount.
3,747,594 26.44 4,055,680 3,749,167 24.20 4,057,382
Receivables
without large
individual
amount, but with
great risk after
combined
according to risk
characteristics
8,722,442 61.54 8,606,724 9,126,271 58.91 8,610,337
Other minor
receivables
1,702,719 12.01 78,474 2,616,883 16.89 78,507
Total 14,172,755 100 12,740,878 15,492,321 100 12,746,226
For Account receivables with single small amount but the combined item gets higher risk after
combination of credit risk feature. The basis of determining accounts receivable with higher risk is:深圳中冠纺织印染股份有限公司 2008 年半年度报告
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According to our company’s feature, the account receivables with aging more than one year has higher risk,
so, for the account receivable with single amount less than RMB 1 million and aging more than 1 year or
account receivable with aging less than 1 year but there is a clear evidence showing that counterpart is unable to
to pay it on time, they will be included in this combination.
(1) In the receivables at the period end, no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right
and other related units.
( 2）The amount of top five debtor was RMB 4,186,456, accounting for 29.54% of the total.
Accounts receivable include the following foreign currency balances
Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 11,957,265.53 0.88153 10,540,688 12,223,604 0.8819 8,881,870
USD 312,514 6.8319 2,135,066 501,763 6.8346 3,429,349
Total 12,675,754 12,311,219
5.Prepayments
June 30, 2009 December 31, 2008
Items
Amount Proportion% Amount Proportion%
Within 1 year 1,807,632 100 1,815,897 100
Total 1,807,632 100 1,815,897 100
（1） Ending big amount in advance payment
Company name
Relation with
our company
arrears
amount
arrears
time
reason of
arrears
Anqing dacheng printing &
dyeing Co.,Ltd unrelated
parties 828,070 1-2 years
Payment
for goods
unsettled
Shenzhen yingxinjia clothing
Co.,Ltd. unrelated
parties 302,691 1-2 years
Payment
for goods
unsettled
Total 1,130,761
the percentage in total
amount of advance payment
62.55%
（2） Of the prepayments at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
（3）Prepayments include the following foreign currency balances深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 20,536 0.88153 18,103 29,900 0.8819 26,368
Total 18,103 26,368
6.Interest receivable
Items December 31,
2008
Increase in the
current period
Decrease in the
current period
June 30, 2009
Fixed deposit
interest
91,087
66,620
157,707
Total 91,087 66,620 157,707
The accounts receivable is the interest receivable from bank for time deposit paid to our
subsidiary company Hong Kong Victor Onward Co.. The deposit reserve funds is HKD20 million.
7.Other receivables
（1）Other account receivable age
June 30, 2009 December 31, 2008
Items
Amount Proportion%
Provision
for bad
debts Amount Proportion%
Provision
for bad
debts
Within 1
year 18,764 0.39 207,441 4.32 -
1 － 2
years 207,441 4.31 3,375,113 70.32 2,519,915
2 － 3
years 3375113 70.05 2,518,159 18,044 0.38 546,411
Over 3
years 1217062 25.25 1,665,028 1,199,018 24.98 1,118,617
Total 4,818,380 100 4,183,187 4,799,616 100 4,184,943
Other receivables adopted specific identification method on the provision for bad debts.
* The reason that the amount of other receivables with aging more than 3 years is less than the
amount of provision for bad debts is because we are planning to terminate our subsidiary digital
printing company. Our company had prepared provision for bad debts for its accounts receivable RMB
546,411, the consolidation offset the other accounts receivable under such item.It did not offset
corresponding provision for bad debts.
（2）Risk classification of other receivable
Items June 30, 2009 December 31, 2008
Book Balance
Provision
for bad
debts
Book Balance
Provision
for bad
debts深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Amount Proportion% Amount Amount Proportion% Amount
Receivables
with large
individual
amount.
3,381,120 70.17 3,381,120 3,382,539 70.48 3,382,539
Receivables
without large
individual
amount, but with
great risk after
combined
according to
risk
characteristics
1,232,450 25.58 802,067 1,232,967 25.69 802,404
Other minor
receivables
204,810 4.25 184,110 3.83 -
Total 4,818,380 100 4,183,187 4,799,616 100 4,184,943
For Account receivables with single small amount but the combined item gets higher risk after
combination of credit risk feature. The basis of determining accounts receivable with higher risk is:
According to our company’s feature, the account receivables with aging more than one year has higher risk,
so, for the account receivable with single amount less than RMB 1 million and aging more than 1 year or
account receivable with aging less than 1 year but there is a clear evidence showing that counterpart is unable to
to pay it on time, they will be included in this combination.
（1）Of the prepayments at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
( 2）The amount of top five account receivable was RMB 4,339,511, accounting for 90.06% of the total.
(3) Ending balance exclude accounts receivable from related parties.
（4）other receivable include the following foreign currency balances
Foreign
currency
Name
June 30, 2009 December 31, 2008
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 299,314 0.88153 263,854 324,711.95 0.8819 286,363.00
Total 263,854 286,363.00
8. Inventories and provision for impairment of inventories深圳中冠纺织印染股份有限公司 2008 年半年度报告
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（1）Inventories
Items June 30, 2009 December 31, 2008
Raw materials 9,475,450 9,479,427
Work-in-process -
Stock 347,912 1,076,055
Total 9,823,362 10,555,482
Ending inventory is RMB 732,120 less than beginning inventory, reduced percentage is
57%,the reasons are production suspension, no more purchase on raw materials and gradually settle
stock on hand.
（2）Provision for impairment of inventories
Items
December 31,
2008
Increase in the
current period
Decrease in
the current
period
Exchange
rate
changed
June 30,
2009
Raw materials 6,853,744 -2,875 6,850,869
Work-in-process -
Stock 190,991 -81 190,910
Total 7,044,735 -2,956 7,041,779
The method for Provision for impairment of inventories , see Note V,8.
9. Financial assets for sale
Items December 31, 2008(Fair
value )
June 30, 2009 (Fair
value )
sale equity
instruments 338,472 207,255
Total 338,472 207,255
The equity tools for sale are the shares held by the subsidiary of the company Hong Kong Victor Onward , because they are
not to be cashed in a short term, so they are classified in this item, the change of fair value in the current period RMB
131,217 has been included in the public capital reserve.
10. Long-term equity investment
（1）Long-term equity investment
Items June 30, 2009 December 31, 2008
The cost of long-term equity
investment accounting - -
The equity method long-term
equity investment 49,491,623 47,184,759深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Total of long-term equity
investment 49,491,623 47,184,759
Less ： Long-term equity
investments for impairment
Net value long-term equity
investment 49,491,623 47,184,759
（1） Long term equity investments accounted by equity method
Invested
company name
shareholding
ratio
Voting
right
ratio
initial
amount
beginning
amount
Current
changes
exchange
rate
change
Ending
amount
1.Zhejiang
Union Hangzhou
Bay
25% 25% 58,588,403 47,184,759 2,324,322 -17,45849,491,623
2. Shenzhen
Lianchang
37.5% 37.5% 1,403,456 - -
Total 59,991,859 47,184,759 2,324,322 -17,45849,491,623
Zhejiang Union Hangzhou bay chuangye Co., Ltd. (hereinafter named“Hangzhoubay”) current change
including current profit confirmed by equity method is RMB2,324,322.
Shenzhen Lianchang Printing & Dyeing Co. Ltd. was in loss for many years, its net assets were negative, the
operation of the company has stopped, the balance of long-term equity investment has been adjusted to zero.
（2）The investment in the Enterprise
Name Registration
place
Property
Net asset at
end period
Total
income
Net profit at
the period
1.Zhejiang Union
Hangzhou Bay
Hangzhou Real
estate 213,239,131 134,928,909 9,308,540
2. Shenzhen Lianchang
Shenzhen
Printing
and
dyeing
-4,881,960 - -
Total 208,357,171 134,928,909 9,308,540
11. Property investment
The investment in real estate companies use the cost model measures
Items
December
31, 2008
Increase in
the current
period
Decrease
in the
current
Exchange
rate
changed
June 30,
2009深圳中冠纺织印染股份有限公司 2008 年半年度报告
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period
Original Value 105,130,823 -44,107 105,086,716
Including ：House,
Building
105,130,823 -44,107 105,086,716
Accumulated
amortisation
56,965,039 1,758,042 -23,900 58,699,181
Including ：House,
Building
56,965,039 1,758,042 -23,900 58,699,181
Depreciation -
Including ：House,
Building
-
The book value 48,165,784 -1,758,042 - -20,207 46,387,535
Including ： House,
Building
48,165,784 -1,758,042 - -20,207 46,387,535
Increased investment real estate in current period is because that the usage of our subsidiary company
Nanhua printing and dyeing company’s house changed from self-use to lease. It has been adjusted accordingly
from fixed assets to investment real estate.
12. Fixed assets
（1）Fixed assets
Items
December
31, 2008
Increase in
the current
period
Decrease in
the current
period
Exchange
rate
changed
June 30,
2009
Original Value 178,239,980 81,982 354,897 -74,635 177,892,430
House and building 52,478,348 -22,017 52,456,331
Machine and
Equipment 109,261,918
-45,841 109,216,077
Transportation
Equipment 5,591,939 81,982 354,897
-2,346 5,316,678
Office equipment and
other 10,907,775
-4,576 10,903,199
Accumulated
depreciation
122,178,573 62,204 327,651
-25,151 121,887,975
House and building 28,286,829 -11,868 28,274,961
Machine and
Equipment 81,994,703
-34,401 81,960,302
Transportation
Equipment 4,612,057 48,894 327,651
-1,935 4,331,365
Office equipment and
other 7,284,984 13,310
-3,056 7,295,238深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Items
December
31, 2008
Increase in
the current
period
Decrease in
the current
period
Exchange
rate
changed
June 30,
2009
Depreciation
provision
33,323,616
-13,981 33,309,635
House and building 16,824,311 -7,059 16,817,252
Machine and
Equipment 13,507,631
-5,667 13,501,964
Transportation
Equipment 2,057
-1 2,056
Office equipment and
other 2,989,617
-1,254 2,988,363
The book value 22,737,791 19,778 27,246 -35,503 22,694,820
House and building 7,367,208 -3,090 7,364,118
Machine and
Equipment 13,759,584
-5,773 13,753,811
Transportation
Equipment 977,825 33,088 27,246
-410 983,257
Office equipment and
other 633,174 -13,310
-266 619,598
*1.The lands of plants and offices of the company at No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang,
Shenzhen were obtained by leasing, lease period by March 31, 2009. Company is handling the land use
procedures.Please refer to note 14 for details.
The Company shutdown for consolidation on March 2007, part of machinery and equipments were to be used for
foreign investment, so the company fully accounted provision for impairment on residual value of housings, accounted
40% provision for impairment from the machinery and equipments, and accounted provision for impairment from the full
value of residual value of other machinery and other equipments.
（2）Details of temporary idle fixed assets are as follows：
Items
Book
Original
value
Accumulated
depreciation
Impairment
provision Book Net value
House and building 48,096,386 27,174,907 14,300,825 6,620,654
Machine and
Equipment 109,216,077 81,960,302 13,501,964 13,753,811
Transportation
Equipment 3,582,130 3,241,819 340,311
Office equipment and
other 9,099,859 5,786,290 2,988,363 325,206
Total 169,994,452 118,163,319 30,791,151 21,039,982
* Among those temporarily idled machines and equipments, the original value of machine planning
invested to Nanjing east asia textile printing & dyeing Co.,Ltd is RMB 82,873,481, accumulated depreciation is
RMB 60,245,034, Provision for impairment is RMB 10,837,281, net book value is RMB 11,791,166.深圳中冠纺织印染股份有限公司 2008 年半年度报告
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13. Intangible assets
Items
December
31, 2008
Increase in
the current
period
Decrease in
the current
period
Exchange
rate
changed
June 30,
2009
Original Value 11,988,218 -5,030 11,983,188
Land Use right 11,262,004 -4,725 11,257,279
Software 726,214 -305 725,909
Accumulative
Amortized 11,741,107 -4,926 11,736,181
Land Use right 11,262,004 -4,725 11,257,279
Software 479,103 -201 478,902
Depreciation
provision 247,111 -104 247,007
Land Use right - -
Software 247,111 -104 247,007
The book value -
Land Use right -
Software -
14.Goodwill
Items June 30, 2009 December 31, 2008
Goodwill formed by shareholding
increment in Nanhua company.
3,593,139 3,594,648
Total 3,593,139 3,594,648
Reduced amount in current period is the impacted amount due to the change of exchange rate.
15.Detailed list of impairment on fixed assets
Item
Beginning
amount
Provisio
n for this
Decrement in current
period
Changes
of
Ending
amount深圳中冠纺织印染股份有限公司 2008 年半年度报告
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year
Amount
transferr
ed back
Other
amount
transfer
out
exchange
rate
Provision for bad
debts
16,931,169 -7,104 16,924,065
Provision for
obsolete stocks
7,044,735 -2,956 7,041,779
Provision for
impairment of
fixed assets
33,323,616 -13,981 33,309,635
Provision for
impairment of
intangible assets
247,111 -104 247,007
Total 57,546,631 -24,145 57,522,486
16.Account payable
（1）Account payable
Items June 30, 2009 December 31, 2008
Total 5,943,216 6,175,741
Including: Over 1 year 1,538,427 1,796,627
Ending amount of accouts payable is RMB 232,525 less than beginning amount.
Reduced for 3.77%, main reason is due to the decrease of our company’s purchasing business.
Aging of accounts receivable including more than one account, accounts payable has no single item with
big amount.
Of the prepayments at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
（3）Accounts payable include the following foreign currency balances.
Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 551,336 0.88153 486,019 551,336 0.8819 486,223
Total 486,019 486,223
17.Advanced account
（1）Advanced account
Items June 30, 2009 December 31, 2008深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Total 5,377,418 5,281,103
Including: Over 1 year 1,767,065 2,234,901
Advanced account more than 1 year was mainly the sale fund for the wasted materials from the
relocation of the company, and due to delays in the overall relocation plan, the money paid in advance
was temporarily suspended.
Of the prepayments at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
（3）Advanced Accounts include the following foreign currency balances.
Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 67,065 0.88153 59,120 595,522.23 0.8819 525,191
USD 199,748.46 6.8346 1,365,201
Total 59,120 1,890,392
18. Wage payables to employees
Items
December
31, 2008
Increase in
current period
Decrease in
the current
period
June 30,
2009
Wage (Including reward ,
allowance and subsidy)
515,724 1,709,351 1,749,462 475,613
Welfarism For employees - 21,021 21,021 -
Social insurance premiums - 350,915 350,915 -
Including :
Medical insurance premiums
- 34,201 34,201 -
Basic old-age insurance
premiums
- 246,734 246,734 -
Annuity payment - 63,131 63,131 -
Unemployment insurance expenses - 2,419 2,419 -
Industrial injury insurance
premiums
- 1,919 1,919 -
Childbirth insurance premiums - 2,512 2,512 -
Housing accumulation fund - 17,954 17,954 -
Trade union outlays and
employee education
outlays
84,160 - 1,199 82,961
Other - - - -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Total 599,884 2,450,157 2,491,467 558,574
At the period end, the company had no wages payable that belong to arrears.
19. Fees and taxes payables
Items Tax rate June 30, 2009 December 31, 2008
VAT 17% 1,800,830 1,626,945
Business tax 5% 235,420 235,420
Enterprise income tax
18%、16.5% 1,441,086 1,441,086
Tax on city maintenance and
construction 1% 751 751
Property tax 1.2%和12% 294,194 294,194
Individual income tax
Tariff 10% 711,084 711,084
Stamp tax 242,213 242,213
Total 4,725,578 4,551,693
20. Dividend payable
Items June 30, 2009 December 31, 2008 Reasons of
arrears
State Development &
Investment Co., Ltd*2
264,436 264,547
CITIC Group 264,436 264,547
Shenzhen Nanyou (Group)
Company
132,219 132,274
Shenye Union（Hongkong）
Co., Ltd.
132,219 132,274
Changzhou Dongfeng
Printing and dyeing plant
*2
528,872 529,095
Capital
tense*1
Total 1,322,182 1,322,737
*1 The above payable dividends were the payable dividends of Nanhua Company, a subsidiary of the company, the change
in balance mainly due to the change of exchange rate. Because Nanhuan Company’s capital was more tension and the
shareholders did not ask for the fund, the payable dividends have not been paid. The payable dividends reduced at the end
of the period mainly due to the change of exchange rate.
*2 The above two companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
21. Other accounts payable
（1）Other accounts payable
Items June 30, 2009 December 31, 2008
Total 30,935,644 30,064,983深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Including：Over 1 year 25,572,249 25,582,982
（2）Other payables which are longer than one year mainly were the loans borrowed
by Nanhuan Company the subsidiary of the company from related companies, which have not been paid because of capital
tension.
（3）Of the Other payables at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
(4)Ending big amount in other payment
Items arrears
amount
arrears time
reason of
arrears
Union Group 21,019,459
Within 1 year or over
3 years Between loan
Shenzhen Union Property
Group Co., Ltd. 3,570,390
Within 1 year or over
3 years Between loan
Guotou Company 2,998,401 Over 3 years Between loan
Total 28,063,049
（5）Other payable Accounts include the following foreign currency balances.
Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 1,821,984 0.88153 1,606,134 1,839,964.93 0.8819 1,622,665
Total 1,606,134 1,622,665
22. Long-term loans
Type June 30, 2009 December 31, 2008
HKD 1,604,778 1,674,164
Total 1,604,778 1,674,164
This loan is the mortgage loan of our subsidiary company Xingye company for purchasing house in
Hongkong, the guarantees is the purchased house.
23. Long-term payable
Items Term June 30, 2009 December 31, 2008
Assets revaluation
increase Unlimited 9,228,347 9,232,220
Total 9,228,347 9,232,220深圳中冠纺织印染股份有限公司 2008 年半年度报告
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* The company was authorized by People's Bank of China when it was reorganized into joint-stock company, the
revaluation of the assets of the revaluation gain attributable to the restructuring of the Company before the shareholder.
The asset was re-assessed on January 31, 1992, which generated about 14,754,000 HKD revaluation gain, recorded on
account as long-term payable subject, part of them have been used to offset the bad debts prior to listing (about 4,285,000
HKD ). The shareholders before the reorganization have agreed not to require the company to pay such amounts with cash,
to offset each other when purchase stocks of the company in the future, the decrease of long-term payables mainly due to
the change of exchange rate.
24. Deferred income tax liabilities
（1）The confirmed Deferred income tax liabilities.
Items June 30, 2009 December 31, 2008
The income tax of taxable
temporary difference.
1,015,523 1,015,950
Total 1,015,523 1,015,950
（2）The temporary difference
Item of the taxable temporary June 30, 2009 December 31, 2008
Assets assessment
appreciation*1 6,154,685 6,157,273
Total 6,154,685 6,157,273
Tax rate 16.5% 16.5%
Confirmation of the Deferred income tax
liabilities. 1,015,523 1,015,950
When the company was reorganized into joint-stock company, the company was approved by the People's Bank of
China, the added value of the assets of the subsidiary of the company Hong Kong Victor Onward Company, according
to Hong Kong Standards, can not be adjusted, and was not to be deducted when accounting the income tax, resulting
in the differences in net value of fixed assets and accounting basis.
25. other non-current liabilities
Items December 31,
2008
Increase in
current period
Decrease in the
current period
June 30,
2009
ERP information
construction Fund 248,259 104 248,115
Digital printing
technology
subsidies 662,025 278 661,747
Total 910,284 382 909,902
Above amounts received by our company in 2004, they are the specific grant allocation from
financial bureau of Shenzhen city for digital jet printing project and the specific grant allocation for
IT application in enterprise. It will be temporarily on account because the bookkeeping can only深圳中冠纺织印染股份有限公司 2008 年半年度报告
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be done according to the acceptance result after completing the inspection and acceptance by
financial bureau of Shenzhen city. Current decrease is due to the change of exchange rate.
26. Share capital
December 31, 2008 June 30, 2009
Name/Type
Amount Proportion%
Chanaged
Amount Proportion%
.Shares w
conditional
subscription
state-owned
legal person
shares
5,365,251 3.17 -5,365,251
Other domestic
shares
43,141,032 25.51 -43,141,032
Incl：domestic le
person shares 43,141,032 25.51 -43,141,032
Total Shares
with conditional
subscription
48,506,283 28.68 -48,506,283
Shares with
unconditional
subscription
Common shares
in RMB
51,214,170 30.28 48,506,283 99,720,453 58.96
foreign shares in
domestic market
69,421,903 41.04 69,421,903 41.04
Total Shares
with
unconditional
subscription
120,636,073 71.32 48,506,283 169,142,356 100
169,142,356 100 169,142,356 100
Total of capital
shares
27. Capital common reserve
Items December 31,
2008
Increase in
current period
Decrease in
the current
period
June 30, 2009
Share capital Premium 29,718,829 29,718,829
Other Capital common
reserve 9,475,802
131,304
9,607,106
Total 39,194,631 131,304 39,325,935深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Current increment in capital surplus came from other equity changes in our subsidiary company Shenzhen
East Asia Co., Ltd. Those equity changes attribute to our company. Current increment RMB 131,304 came from
current fair value gain of finance assets available for sale.
28. Surplus common reserve
Items December 31,
2008
Increase in
current period
Decrease in
the current
period
June 30, 2009
Statutory Surplus
common reserve
26,309,287
26,309,287
Total 26,309,287 26,309,287
29. Retained profit
Items Amount Proportion（%）
Balance at the last year beinning -115,810,517
Add：Adjustment Retained profit at the period
beginning -
Including：Change of accounting policy -
Correcting previous errors -
Change of same controlling scope -
Other adjustment factors -
Balance at the beginning of current yea -115,810,517
Add ：Net profit in this period -1,265,877
Less ： Withdrawing statutory surplus public
reserve
Withdrawing Arbitrary Surplus reserves
common stock dividend of payable
Distribution of common stock dividend
Balance at the period end -117,076,394
Including ：Cash dividends to be allocated
30. Minority shareholders equity
Subsidiary name Proportion
June 30, 2009 December 31,
2008
Digital printing
Company* 25%
-
Nanhua Company* 34.22% -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Shenzhen East Asia
Company 49%
811,872 884,454
Total 811,872 884,454
* The two subsidiaries had excess losses, because the constitution and agreement of the company agreed that small
shareholders bear the obligations of the excess losses, so the equity of minority shareholders was reduced to zero, the
excess losses were fully beard by the Company.
31. Business income, Business cost
（1）Business income
Items In the report period The same period of last
year
Key business income 9,494,848 26,674,931
Other business income 2,992,655 4,085,926
Total 12,487,503 30,760,857
Key business cost 9,714,283 27,777,863
Other business coste 1,900,035 2,151,692
Total 11,614,318 29,929,555
（2）Type
In the report period The same period of last year
Content business
income
business
cost
business
income
business
cost
Cloth bleaching, printing and
dyeing 9,494,848 9,714,283 26,674,931 27,777,863
Lease 2,992,655 1,900,035 4,085,926 2,151,692
Total 12,487,503 11,614,318 30,760,857 29,929,555
（3） The total amount of top five customers’sales income in current period is RMB 6,357,421. The
percentage occupied in current year’s main business income is 50.91%
（4）Current business income and cost were reduced for RMB 18,273,354 and RMB 18,315,237
respectively compared with same period last year. Reduced percentage is 59.40% and 61.19% respectively.
Main reasons is that our company and Nanhua company will continue to suspend production.Shenzhen East
Asia company’s business has further downturn
32.Sale expenses
Current sale expenses is RMB 1,147,721, reduced for RMB 244,819 compared with same period last year,
reduced percentage is 17.58%. The main reason is sale expenses cutting.
33.Administration expense
Current administration expense is RMB 3,061,042, reduced for RMB 2,441,287 compared with
same period last year, reduced percentage is 44.37%. The main reason is expenses cutting down
after suspending production.深圳中冠纺织印染股份有限公司 2008 年半年度报告
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34. Financial expenses
Items In the report period The same period of
last year
Interest expenses 633,465 1,230,000
Less：Interest income 241,746 613,442
Add：Exchange rate loss 9,822 -1,851,513
Add：Other expenses 11,557 30,678
Total 413,098 -1,204,276
Current finance expenses increased for RMB 1,617,374 compared with the same period last year.
Increased percentage is 134.30%, It is mainly due to the big change of HKD/RMB exchange rate in prior year.
All interest expense in current period is accrued loan Interest of our subsidiary company Nanhua company for
the loan from Hualian group, actual payment has not been done yet.
35. Asset impairment losses
Items In the report period The same period of
last year
Bad debt losses
Inventory devaluation losses -6,288,116
Fixed asset impairment losses
Intangible asset impairment losses
Total -6,288,116
36. Changes income in fair value /loss
Items In the report period The same period of
last year
Trading financial assets- Changes loss in fair
value
42,833
-53,076
Total 42,833 -53,076
The reason for the difference for the balance change of transactional financial assets was due to the
difference in translation.
37. Investment income
(1）Investment income generated by the sources listed
Items In the report period The same period of
last year
Stock investment income 1852 328,799
The amount of net increase of owner’s equity of
the invested unit adjusted at the year end 2,327,135 -6,123,424
Income from transfer of equity investment深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Total 2,328,987 -5,794,625
* This year's money has increased tremendously is because Hangzhou Bay Company is still under
exlpoitation of real estate, has profit,
* * Large increment in current amount compared with same period last year is due to the profit made by
Hangzhoubay Company from real estate sales.
There were no major restrictions in the investment income at the period end.
（2）Equity method
Items In the report period The same period of
last year
Total 2,328,987 -6,123,424
Including：Hangzhou Bay Company 2,327,135 -6,123,424
38.Non-operating income
Items In the report period The same period of last
year
Net income disposition fixed assets 24,259
Other 2,339
Total 26,598
39. Non-operating expense
Items In the report period The same period of last
year
Loss disposition Non-current assets 7,645
Debt restructuring loss
Donate expenses
Other 200 33,995
Total 7,845 33,995
40. Calculation process for Basic gains per share and Diluted gains per shares
Items
No
In the report
period
The same
period of last
year
Net profit
attributable to
shareholder of the
Parent Company
1
-1,265,877 -4,296,620深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Items
No
In the report
period
The same
period of last
year
non-recurring
gain/loss attributable
to the shareholders of
the Parent Company
2
18,753 290,011
Attributable to the
shareholders of the
Parent Company, Net
profit after deducting
of non-recurring
gain/loss\
3=1-2
-1,284,630 -4,586,631
Total of shares at
year-beginning 4 169,142,356 169,142,356
Public reserve
was transferred
as capital and
share increase
from dividend
distribution（Ⅰ）
5
- -
The issuance of
new shares or
increase the
number of shares
and other
debt-equity swap
（Ⅱ）
6
- -
Increase in the shares
( Ⅱ )from the next
month to the end
month of the
reporting period
7
- -
Shares decreased in
the reporting period
due to repurchase.
8
- -
Decrease in the
shares from the next
month to the end
month of the
9
- -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Items
No
In the report
period
The same
period of last
year
reporting period
Number of months of
the reporting period
10
- -
The weighted
average number of
ordinary shares
issued out.
11=4+5+6×7÷10
-8×9÷10
169,142,356 169,142,356
Basic gains per share
（Ⅰ） 12=1÷11
-0.01 -0.03
Diluted gains per
share（Ⅱ） 13=3÷11
1.00 1.00
The interest of
ordinary shares
which was confirmed
as costs
14
- -
Conversion costs 15 - -
Income tax rate 16 18% 15%
Warrants, shares with
equity right increase
17
- -
Diluted gains per
share（Ⅰ）
18=[1+(14-15)×(1-16)]÷(11+17)
-0.01 -0.03
Diluted gains per
share（Ⅱ）
19=[3+(14-15)×(1-16)]÷(11+17)
-0.01 -0.03
41. Cash flow statement
（1）cash and cash equivalents
Items In the report period The same period of last
year
Cash 63,658,478 61,459,610
Including :Stock of cash 139,348 76,351
The bank deposits which can be used at any
time 53,333,380 41,397,719
The other monetary funds which can be used at
any time 10,185,750 19,985,540
The funds deposited in the central bank
which be used - -
The funds deposited in the same industry - -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Items In the report period The same period of last
year
The funds offered by the same industry - -
Cash equivalents - -
Including : Debt investments which will due
within three months - -
Balance of cash and cash equivalents at the
period end 63,658,478 61,459,610
Including : the restricted cash and cash
equivalents used by the parent company or
subsidiary of the Group - -
（2）Supplement information of Consolidated Flow Statement
Items
In the report period
The same
period of last
year
1. Adjusting net profit to net cash flow in operating
activities:
Net profit -1,358,103 -4,452,871
Add： Provision for impairment of assets - -6,288,116
Fixed assets depreciation 1,417,435 2,033,147
Amortization of intangible assets - 289,821
Amortization of long-term expenses to be amortize -
The losses on the disposal of fixed assets, intangible
assets and other long-term assets -31,877
Loss on retirement of fixed assets -
Loss on changes of Fair value 42,825 53,076
Financial expenses 405,962 -1,204,276
Investment losses -2,326,660 5,794,625
Decrease of deferred income tax asset -
Increase of deferred income tax liability -427 171,393
Decrease in inventory 728,063 11,934,010
Decrease in operating receivable
2,215,595
7,881,135
Increase in operating payables 1,300,541 -4,968,968
Other -
Net cash flows from operating activities 2,393,354 11,242,976
2.Investing and financing activities that do not involve
cash receipts and payments -
Conversion of debt into capital -
Convertible bonds to be expired within one year -深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Items
In the report period
The same
period of last
year
Fixed assets under financial lease -
3.Net increase in cash and cash equivalents -
Cash at the end of the period 63,658,478 61,459,610
Less：Cash at the beginning of the period 61,368,428 52,656,852
Add: Cash equivalents at the end of the period
-
Less：Cash equivalents at the beginning of the period
-
Net increase in cash and cash equivalents 2,290,050 8,802,758
* the financial cost of interest payments was the loan interest of the related parties, reflected in business
activities.
IX. Parent company Notes of financial statements
1. Accounts receivable
(1)Account receivable age
June 30, 2009 December 31, 2008
Items
Amount Proportion%
Provision
for bad debts Amount Proportion%
Provision
for bad debts
Within
1 year 166,582 1.30 736,126 5.56 22,084
1 － 2
years 122,075 0.96 22,075 1,719,937 13.00 1,719,937
2 － 3
years 1,719,215 13.45 1,719,215 5,669,146 42.85 5,669,146
Over 3
years 10,770,355 84.29 10,770,355 5,105,730 38.59 5,105,730
Total 12,778,228 100 12,511,646 13,230,939 100 12,516,897
(2) Risk classification of Account receivable
June 30, 2009 December 31, 2008
Book Balance Book Balance
Items
Amount Proportion%
Provision
for bad
debts
Amount Proportion%
Provision
for bad
debts
Receivables
with large
individual
amount.
4,012,036 31.40 4,012,036 4,013,720 30.34 4,013,720
Receivables
8,477,535 66.34 8,477,535 8,481,093 64.10 8,481,093深圳中冠纺织印染股份有限公司 2008 年半年度报告
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without large
individual
amount, but
with great risk
after
combined
according to
risk
characteristics
Other minor
receivables
288,657 2.26 22,075 736,126 5.56 22,084
Total 12,778,228 100 12,511,646
13,230,939 100 12,516,897
(1)The drawing methods and ratio of provision for bad debt are described in Note 8(4)
（1） The total amount of the top five accounts receivable at the period end was RMB 5,049,372 ,
accounting for 39.51% of the total accounts receivable.
(4) Account receivable include the following foreign currency balances
Foreign June 30, 2009 December 31, 2008
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 13,034,148 0.88153 11,489,992 12,955,677 0.8819 11,425,612
Total 11,489,992 11,425,612
2. Other receivables
(1) Age of account receivable
June 30, 2009 December 31, 2008
Items
Amount Proportion%
Provision
for bad
debts
Amount Proportion%
Provision
for bad
debts
Within
1 year 66,627,151 77.19 22,488,425 26.19 -
1 － 2
years 62,227,913 72.46 2,486,951
2 － 3
years 18,532,109 21.47 2,485,908 35,000 0.04 32,964
Over 3
years 1,158,433 1.34 1,151,098 1,123,919 1.31 1,118,617
Total 86,317,692 100 3,637,005 85,875,257 100 3,638,532
(2)Risk classification of other receivable深圳中冠纺织印染股份有限公司 2008 年半年度报告
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June 30, 2009 December 31, 2008
Book Balance
Provision
for bad
debts
Book Balance
Provision
for bad
debts
Items
Amount Proportion% Amount Amount Proportion% Amount
Receivables
with large
individual
amount.
84,948,545 98.41 3,318,298 84,585,569 98.5 3,319,691
Receivables
without large
individual
amount, but
with great risk
after
combined
according to
risk
characteristics
897,677 1.04 318,707 898,054 1.04 318,841
Other minor
receivables
471,470 0.55 391,634 0.46 -
Total 86,317,692 100 3,637,005 85,875,257 100 3,638,532
(3) The total amount of the top five accounts receivable at the period end was RMB 84,232,707 , accounting
for 97.58% of the total accounts receivable. Mainly due to receivable of the Company subsidiary current account.
(4)Other Account receivable include the following foreign currency balances
June 30, 2009 December 31, 2008
Foreign
currency Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 76,323,952 0.88153 67,281,853 75,848,108 0.8819 66,890,447
Total 67,281,853 66,890,447
3. Long-term equity investment
（1）Long-term equity investment
Items June 30, 2009 December 31, 2009
The cost of long-term equity 39,958,087 39,974,858深圳中冠纺织印染股份有限公司 2008 年半年度报告
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investment accounting
Total of long-term equity
investment 39,957,087 39,974,858
Less ： Long-term equity
investments for impairment -
Net value long-term equity
investment 39,958,087 39,974,858
(2) The method for cost
Name Proportion%
Vote
proportion%
Initial
amount
December
31, 2008
Increase/decrease
in this period
Exchange
rate
change
June 30,
2009
Dividend
The method
for cost：
Hong Kong
Victor Onward
100% 100% 2,411,282 23,077,357 -9,682 23,067,675 -
Nanhua
Printing
and dyeing
51.16% 51.16% 25,917,931 15,534,564 -6,518 15,528,046 -
East Asia 51% 51% 1,530,000 1,362,937 -571 1,362,366 -
Total 29,859,213 39,974,858 -16,771 39,958,087
(4) Business income, Business cost
（1）Business income, , Business cost
Items
In the report
period The same period of last year
Key Business income 4,227,990 13,106,008
Other business income 536,465 480,305
Total 4,764,455 13,586,313
Key Business cost
3,882,058 17,106,778
Other business cost 228,522 207,953
Total 4,110,580 17,314,731
（1） Type
Items In the report period The same period of last year深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Business
income
Business cost
Business
income
Business cost
Cloth bleaching, printing and
dyeing
4,227,990 3,882,058
13,106,008 17,106,778
Lease income 536,465 228,522 480,305 207,953
Ttal 4,764,455 4,110,580 13,586,313 17,314,731
（2） The total amount of the top five sale income at the period end was RMB
3,635,746, accounting for 76.31% of the total sale income .
(5) Investment income
Items In the report period The same period of
last year
Investment income from disposal of
long-term equity investment
Investment income obtained from disposal
of transactional financial assets
324,006
Total 324,006
5. Contingent events
The external investment contracts and the related financial expenditures which have signed or not yet
completely fulfilled.
6.Leasing
(1) Business in leasing assets
Type June 30, 2009 December 31, 2009
Cost 105,086,716 105,130,823
House, Building 105,086,716 105,130,823
Accumulated amortisation 58,699,181 56,965,039
House, Building 58,699,181 56,965,039
Impairment provision -
House, Building -
The book value 46,387,535 48,165,784
House, Building 46,387,535 48,165,784
(2) Significant operating lease minimum lease payments
Exchange liquidation深圳中冠纺织印染股份有限公司 2008 年半年度报告
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By June 30, 2009, The leasing of office space of the Group requires for non-cancellable operating
lease commitments in the following period as follows:
The remaining lease period
Minimum lease
payments
Within 1 year(including 1 year) 197,898
Over 1 year and within 2 years(Including 2 years) -
Over 2 years and within 3 years(Including 3 years) -
Over 3 years -
Total 197,898
XII. Related party relationship and related transactions
1. Related party relationship
(1)The related parties with controlling relationship
Parent
company
Type
Registered
address
Legal
repres
Nature
Relations
hip
Organi
zation
Code
Union
Holding
Issue
company
11/F,Union
Bulding,
Dong
Bingg
Production
and sale ofclothing
Controll
ing
192471500
Union
Group
Limited
liabilit
Union
Bulding,Shenna
Dong
Bingg
Import & export
business
Actual
controller
190337957
(2) The registered capital of the related parties with controlling relationship and the change
thereof.
Parent company Balance in year
beginning
Increase of
this period
decrease of this
period
Balance in year
end
Union Group 90,606,000 - - 90,606,000
Union
Holdings 1,123,887,712 - - 1,123,887,712
(3) The related parties without controlling relationship
Shares amount Holding proportion% Vote proportion%
Parent company Amount in
year end
Amount
in year
beginning
Proportion
in year end
Proportion
in year
beginning
Proportion
in year end
Proportion
in year
beginning
Union Group 5,948,681 6,299,185 3.52% 3.72% 3.52% 3.72%
Union
Holdings 43,141,032 43,141,032 25.51% 25.51% 25.51% 25.51%
* Union Group holds 31.32% of equity capital of Union Holdings, it controls Union Holdings, and Union深圳中冠纺织印染股份有限公司 2008 年半年度报告
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Holdings is a controlling shareholder of the company, thus Union Group is the actual controller of the company
1. Subsidary company
The subsidiaries of the company as described in Note 7.
2. Join Enterprise and affiliated Enterprise
The affiliated of the company as described in Note 8, 10.
(4) Other Related party
Type Name
Related
transactions
The related parties controlled
the same Actual controller
Shenye Union（HK）Co., Ltd.
Current balance
The related parties controlled
the same actual controller
Shenzhen Union Property
Group Co., Ltd.
Current balance
(2)Lease assets to the related parties
In the report year, the Company leased Room 1307 and 1308 of Union Building owned by Union Group. The term of
tenancy is from March 1, 2008 to February 28, 2009. The monthly rent is RMB 6800. The rent was determined
according to market price.
(3). Balance current related parties
related parties June 30, 2009 December 31, 2009
Account receivable
Shenye Union（HK）Co., Ltd. 325,507 325,644
Other payable
Union Group 21,019,459 20,492,359
Shenzhen Union Property Group Co.,
Ltd. 3,570,390 3,473,200
XIII. Commitment events深圳中冠纺织印染股份有限公司 2008 年半年度报告
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1. The external investment contracts and the related financial expenditures which have signed or not yet completely
fulfilled.
By June 30, 2009,The Group still has the major external investments RMB 30 million which have signed but still not
paid, as follows:
Names of investment
projects
Contractual
investment
amount
Prepaid
investme
nt
amount
Unpaid
investment
amount
Expected
investmen
t period
Remarks
Invest Nanjing East
Asia Textile Co., Ltd
with machinery and
equipments
30 million - 30 million
Unsurene
ss
Can not be
relocated because
the fields
uncompleted
2.The big contract which has been signed or is ready to be carried out
By June 30, 2009, The Group still has big contract which has been signed but not paid, a total of 1.71 million
yuan, as follows:
Names of
investment
projects
Contractual
investment
amount
Prepaid
investment
amount
Unpaid
investmen
t amount
Expected
investment
period
Remarks
Relocation of
production
equipments as
a whole
1,710,000 855,000 855,000 Unsureness
Can not be
relocated because
the fields
uncompleted
3.The lease contract which is under performance or is ready to be performed and its financial influences
See Note 11,Leaseing .
Except for the events described above, By June 30, 2009,the Group has no other significant commitment events.
IX . Events after balance sheet date
The land for the factory building and office building located at 26 Kuipeng Road, Baishigang, Kuichong Town,
Longgang District, Shenzhen, was leased and the lease term will expire on March 31, 2009. The company had
applied to Shenzhen Municipal Planning Bureau for historical issue, and on January 7, 2009, approved
and reviewed by Shenzhen Municipal Planning Bureau the Coastal Branch and the company acquired
the "program plan of land for construction purposes", currently the official procedures was
undergoing.
In addition to the above matters in items after balance sheet date, this Group had no other
significant matters after the balance sheet date.深圳中冠纺织印染股份有限公司 2008 年半年度报告
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XV.Other Significant Events
Since March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and dismissed most of
workers. The company currently only had some agent import and export business and house leasing business.
Except that the Shenzhen East Asia Company was operating normally, the other five subsidiaries
controlled by the company had stopped the operation and were depending on house lease to maintain.
In 2007 the company intended to invest part of machineries and equipments to Nanjing East Asia
Textile Printing & Dyeing Co., Ltd. But due to the reasons of the joint venture party and the prospect
change in the industry, the investment plan was delayed.
The company mainly made efforts to promote the transfer of printing and dyeing mill project, the company
will strengthen construction direction coordination work，in order to carry out the transfer project as soon as
possible.
XIV Supplement information
1.Statement of Non-current gain and loss
In accordance with the provisions in the No. 1 Announcement on Explanation of Information
disclosure For Companies Publicly Issuing Securities - Non-business Profit and Loss, the amount of
non-business gain and loss of the company in the current period as follows:
Items
In the report
period
The same
period of last
year
Gain/loss form disposal of non-current assets 16,614
Gain/loss form Debt restructuring
Except the effective hedge business related to the normal operation business of
the Company, the profit and loss in the changes of fair values caused by the
holding of tradable financial assets and tradable financial liabilities as well as the
investment returns in disposal of tradable financial assets, tradable financial
liabilities and saleable financial assets
324,006
Single impairment test for impairment of receivables transferred back to
preparation
Net amount of non-operating income and expense except the aforesaid items 2,139 -33,995
Other non-operating income ,Net
Subtotal 18,753 290,011
Impact on Income tax
Total Gains and losses of non-current 18,753 290,011
Including：attributable to shareholders of the parent company 18,753 290,011深圳中冠纺织印染股份有限公司 2008 年半年度报告
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2.Net asset income rate and the income of each share
The net asset income rate and the income of each share were accounted according to the No. 9 of Information
Disclosure Rules for Companies which are Publicly Listed - Net Asset Income Rate and the Calculation and
Disclosure of Each Share issued by China Securities Regulatory Commission:
（1） Amount of Current term
Return on net assets（%） Earnings per share（RMB）
Profit in the report period Fully
diluted
Weighted
average
Fully diluted
Weighted
average
Net profit attributable to
shareholders of the parent
company
-0.01 -0.01 -0.01 -0.01
Net profit attributable to
shareholders of the Parent
company after deducting
non-recurring gains and losses
-0.01 -0.01 -0.01 -0.01
（2） Amount of Same period last year
Return on net assets（%） Earnings per share（RMB）
Profit in the report period Fully
diluted
Weighted
average
Fully diluted
Weighted
average
Net profit attributable to
shareholders of the parent
company
-0.03 -0.03 -0.03 -0.03
Net profit attributable to
shareholders of the Parent
company after deducting
non-recurring gains and losses
-0.03 -0.03 -0.03 -0.03
XVII. The approval of financial reports
The report of the financial statements was approved by all directors of the board of directors of
the Company on August 19,2009.
Chapter VII. List of Documents Available for Inspection
I. The semi-annual report 2009 of the Company;
II. The semi-annual financial report bearing the signatures and seals of the legal representative, person深圳中冠纺织印染股份有限公司 2008 年半年度报告
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in charge of accounting work and the person in charge of the accounting department;
III. The texts of all the Company's documents publicly disclosed in the newspapers and periodicals
designated by China Securities Regulatory Commission in the report period.
IV. The text of the Articles of Association of the Company.
The Board of Directors of Shenzhen Victor Onward Textile Industrial Co., Ltd
August 19, 2009
