1/89
深圳中冠纺织印染股份有限公司
Shenzhen Victor Onward Textile Industrial Co., Ltd.
2010年半年度报告
The Semiannual Report 2010
August 19, 2010深圳中冠纺织印染股份有限公司
2010 年半年度报告
2/89
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 Semi-annual 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
2010 年半年度报告
3/89
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
2010 年半年度报告
4/89
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 : Zhang Jinliang (Temporary)
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. 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
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
2010 年半年度报告
5/89
II. Highlights of financial data and indexes
(I) Main profit indexes for the semi-annual 2010
Unit: RMB
End of the report
year
End of the
previous year
Increase /Decrease （％）
Total assets 200,951,524.00 201,318,234.00 -0.18%
Owners’ equity attributable to shareholders
of the listed company
146,423,553.00 143,058,948.00 2.35%
Share capital 169,142,356.00 169,142,356.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
0.87 0.85 2.35%
Report period
(January-June)
Same period last
year
Increase /Decrease （％）
Total operating income 5,280,588.00 12,487,503.00 -57.71%
Operating profit 5,365,210.00 -1,376,856.00 -489.67%
Total profit 5,364,951.00 -1,358,103.00 -495.03%
Net profit attributable to shareholders of the
listed company
5,412,704.00 -1,265,877.00 -527.59%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
5,412,963.00 -1,284,630.00 -521.36%
Basic earnings per share(RMB/share) 0.03 -0.01 -400.00%
Diluted earnings per share(RMB/share) 0.03 -0.01 -400.00%
Return on equity（%） 3.69% -0.98% 4.67%
Net cash flow arising from operating
activities
-371,870.00 2,393,354.00 -115.54%
Net cash flow per share arising from
operating activities (RMB/share)
0.00 0.01 -100.00%
(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
-259
Total -259 -
(3) Attached schedule of profit statement
Profit in the report period Earnings per share（RMB）
Return on net assets, Weighted
(%) Fully diluted
Weighted
average深圳中冠纺织印染股份有限公司
2010 年半年度报告
6/89
Profit in the report period Earnings per share（RMB）
Return on net assets, Weighted
(%) Fully diluted
Weighted
average
Net profit attributable to the
owners of Company. 3.69 0.03 0.03
Net profit attributable to the
owners of Company after
deducting of non-recurring
gain/loss.
3.69 0.03 0.03
（IV）Difference adjustment statement of accounting statement :
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
5,353,058.00 -1,110,558.00 139,114,652.00 135,622,260.00
Pursuant to Chinese
accounting standards
5,412,704.00 -1,265,877.00 146,423,553.00 143,058,948.00
Subitem and total adjusted pursuant to international accounting standards:
Switch back the part of
Hong Kong house
property assessment in
accordance with IAS
-59,646.00 155,319.00 -7,308,901.00 -7,436,688.00
Total difference of
Chinese and overseas
accounting standards
-59,646.00 155,319.00 -7,308,901.00 -7,436,688.00
Notes difference of
Chinese and overseas
accounting standards
The influence of appreciation through appraisal of workshop and 2 parking spaces in Hong
Kong in 1992.
IV. Particulars about Changes in Shareholders' Equity in the Report Period
Unit:RMB
Owner’s equity Attributable to the Parent Company
Items Share
Capital
Capital
reserves
Surplus
reserves
Attributable
profit
Other
Minor
shareholders’
equity
Total of
owners’
equity
Balance
at the
beginning
of current
year
169,142,356 39,297,104 26,704,791 -102,767,941 10,682,638 50,8088 143,567,036深圳中冠纺织印染股份有限公司
2010 年半年度报告
7/89
Changed
in the
current
year
- -6238 5,412,704 -2,041,862 -35,356 3,329,248
Balance
at the end
of this
term
169,142,356 39,290,866 26,704,791 -97,355,237 8,640,776 472,732 146,896,284
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
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
0 0 0 0 0 0 0 0 0
1.State-own
ed shares
0 0 0 0 0 0 0 0 0
2.Staee-ow
ned legal
person
shares
0 0 0 0 0 0 0 0 0
3.Other
domestic
shares
0 0 0 0 0 0 0 0 0
Of which：
Domestic
legal person
shares
0 0 0 0 0 0 0 0 0
Domestic
natural
0 0 0 0 0 0 0 0 0深圳中冠纺织印染股份有限公司
2010 年半年度报告
8/89
person
shares
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
169,142,356 100 0 0 0 0 0
169,142,356 100
1.Common
shares in
RMB
99,720,453 58.96 0 0 0 0 0 99,720,453 58.96
2.Foreign
shares in
domestic
market
69,421,903 41.04 0 0 0 0 0 69,421,903 41.04
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
II. By the end of the report period, the Company had 11,005 registered shareholders in total, including
6,398 shareholders holding A shares and 4,607 shareholders holding B shares.深圳中冠纺织印染股份有限公司
2010 年半年度报告
9/89
III. Top 10 shareholders and top 10 holders of unconditional shares
Total number of shareholders 11,005
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.
Domestic
State-owned
legal person
25.51% 43,141,032 0 0
STYLE-SUCCESS
LIMITED
Foreign legal
person
14.46% 24,466,029 0 0
Shenzhen Textile
(Group) Holdings Co.,
Ltd
State-owned
Legal person
6.02% 10,182,894 0 0
Rich Crown Investment
Co., Ltd.
Foreign Legal
person
3.62% 6,114,556 0 0
Union Developing
Group Co., Ltd.
Domestic
State-owned
legal person
3.44% 5,821,089 0 0
BOCI SECURITIES
LIMITED
Foreign legal
person
1.49% 2,528,567 0 Unknown
Shing Ying Chieh
Foreign natural
person
1.11% 1.879,129 0 Unknown
Liuzhou Jiali Real Estate
Development Co., Ltd.
Domestic
State-owned
legal person
0.89% 1,498,000 0 Unknown
Shifu Securities Co., Ltd.
Foreign legal
person
0.69% 1,168,970 0 Unknown
Wang Guangyuan
Domestic
natural person
0.60% 1,020,050 0 Unknown
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
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
10,182,894 RMB Common shares
Rich Crown Investment Co., Ltd. 6,114,556
Foreign shares placed in
domestic exchange
Union Developing Group Co.,
Ltd.
5,821,089 RMB Common shares
BOCI SECURITIES LIMITED_ 2,528,567
Foreign shares placed in
domestic exchange深圳中冠纺织印染股份有限公司
2010 年半年度报告
10/89
Shing Ying Chieh 1.879,129
Foreign shares placed in
domestic exchange
Liuzhou Jiali Real Estate
Development Co., Ltd.
1,498,000 RMB Common shares
Shifu Securities Co., Ltd. 1,168,970
Foreign shares placed in
domestic exchange
Wang Guangyuan 1,020,050 RMB Common shares
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.
In the report period, Mr. Chen Xing, a director and board secretary of the Company resigned from the
position of director and board secretary for personal reasons on June 28, 2010. Before the appointment of
new board secretary, Mr. Zhang Jinliang, the deputy general manager of the Company, will perform the
responsibilities of board secretary.
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
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, 2010, intrastate project of Nanjing factory is slightly delayed comparing to the
original plan. the Company set up a controlling enterprise “ Shenzhen East Asia Victor Onward Textile
Industrial Co., Ltd.” to connect the original printing & dyeing business of Company.
(I) Operation achievements深圳中冠纺织印染股份有限公司
2010 年半年度报告
11/89
Unit: RMB’0000
Items
January-June
2010
January-June
2009
Increase/decrease Increase/decrease(%)
Operating
income
528 1249 -721 -57.73%
Operation
profit
536 -138 674 -488.41%
Total profit 536 -136 672 -494.12%
Net profit
attributable to
shareholders of
the listed
company
541 -126 667 -529.37%
1、Income from main operation conspicuously decreased by RMB 7.21 million year on year mainly
due to decrease of business volume;
2.Amount of loss decreased by RMB 6.74 year on year mainly due to profit making by Zhejiang
Union Hangzhou Bay Ventures, a joint stock subsidiary;
3. The reason of Total profit and Net profit attributable to shareholders of the listed company
increased more than last year mainly due to abovementioned.
(II) Financial status
Unit：RMB’0000
Items June 30, 2010 December 31, 2009 Increase/decrease
Change margin
(%)
Total assets 20,095 20,132 -37 -0.18%
Shareholders’ equity 14,642 14,306 336 2.35%
1.Total assets decreased by RMB 0.37 million over the beginning of the year mainly due to loss of
the Company account receivable products in current period
2. Shareholders’ equity decreased by RMB 3.36 year on year mainly due to profit making by Zhejiang Union
Hangzhou Bay Ventures, a joint stock subsidiary.
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
2010 年半年度报告
12/89
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/decreas
e 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
104 30 71.15% -89.05% -99.05% 73.47%
Lease 424 206 51.42% 41.81% 5.35% 14.97%
The status of key business in terms of areas .
Unit：RMB’0000
Area Income from key business
Increase/decrease of income
（％）
China 450 -60.77%
Hongkong and overseas 78 -22.77%
(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 5.36 million) Increased by RMB6.74 million over the
same period of the previous year (RMB – 1.38 million). The profit structure is as follows:
1. The operating profit in the report period increased Profit by RMB5.36 million over the same period
of the previous year (RMB – 4.42 million). The profit structure is as follows:
Unit: RMB’0000
Items
Amount
of current
period
Proportio
n to
operating
profit %
Amount of
same period
of previous
year
Proportio
n to
operating
profit %
Main reason for change
Profit from main
operation
292 54.48% 87 -63.04
The proportion of house rent income
increased remarkably深圳中冠纺织印染股份有限公司
2010 年半年度报告
13/89
Selling expenses 38 7.09% 115 -83.33
Affected by decrease of business
volume
Administrant
expenses
430 80.22% 306 -221.74
Re-classification difference from
operating cost for the same period of
previous year
Financial
expenses
-36 -6.72% 41 -29.71 Influence of Exchange ratio
Income from
change in fair value
-2 -0.37% 4 -2.9 Influence of market price fluctuation
Investment income 678 126.49% 233 -168.84
Operating Payoff of Zhejiang Union
Hangzhou Bay Ventures Company
Income from
subscription of
newly issued stocks
10 1.87% Influence of Issue of securities
2.key business structure in the report period
Unit: RMB’0000
Items In the report
period
The same period of
last year
Increase/decrease
amount
Change
margin (%)
Bleaching, printing and
dyeing
104 949 -845 -89.04%
Lease 424 299 125 41.81%
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 26,427,340 in the report period. The income of the Company calculated and recognized on
equity basis is RMB 6,606,835, accounting for 123% 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.深圳中冠纺织印染股份有限公司
2010 年半年度报告
14/89
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. Due to sales realization of real estate projects of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounted for on
equity basis, the accumulative net profit for the period from January 2010 to September 2010 is estimated to be about
RMB 4 million to RMB 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.
(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
Because of the long delay time of this project, original investment environment had
changed, our company is actively discussing with our partner, in order to establish the
project as soon as possible.深圳中冠纺织印染股份有限公司
2010 年半年度报告
15/89
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.
II. Implementation of profit distribution plan
As approved by 2009 Annual Shareholders' General Meeting held on May 12, 2010, the Company neither
distributed profit for the year 2009 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, 2010 December 31, 2009
Shenye Union(HK) Co., Ltd. *
Accounts
receivables
322,136 325,127
Union Group**
Other
payable
21,798,520 21,566,542
Shenzhen Union Property Group Co.,
Ltd.**
Other
payable
3,723,270 3,671,008
* 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
N/A
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
N/A.
2The occupation of funds of the Company by the controlling shareholder and its subsidiaries: No深圳中冠纺织印染股份有限公司
2010 年半年度报告
16/89
N/A
(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.
(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, 2010,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 unincorporated
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, 2010, Group has signed a contract but there are still outstanding major agreement total foreign
investment RMB 30 million .Specific conditions are as follows:深圳中冠纺织印染股份有限公司
2010 年半年度报告
17/89
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, 2010,The Group still has signed the agreement but did not pay large amounts of letting contracts total
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．Except for the events described above, By June 30, 2010,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 June 30, 2010, achieve
investment earning RMB 102.，646.
2.From 2006, the Company started to apply retroactively the procedure for the use of the land for Kuiyong
Factory, Longgang District, Shenzhen. The land area and floorage of this lot are about 98,000 square
meters and 48,000 square meters respectively. On January 18, 2010, Shenzhen Real Estate Title
Registration Center completed approval of the use of the land covering 48058.19 square meters and issued
real estate title deed to the Company after announcement. The issue concerning re-settlement of procedure
for use of land for the remaining houses(Land area and floorage of This lot are about 50000 square meters深圳中冠纺织印染股份有限公司
2010 年半年度报告
18/89
and 25000 Square meters respectively)on factory site is still awaiting handling by relevant governmental
department.
3.The Company's annual financial report for 2009 was audited by Shine Wing Certified Public
Accountants. As shown in the auditor's report, the net profit of the Company for 2009 is RMB 11,667,821
and the net profit for the shareholders of the Company is RMB 12,090,678. According to relevant
provisions of Stock Listing Rules of Shenzhen Stock Exchange, the circumstance for giving caution of
delisting risk of A shares and B shares of the Company has disappeared. After approval by Shenzhen
Stock Exchange, the caution of delisting risk of the stocks of the Company was cancelled from May 31,
2010. However, the key business of the Company has not recovered. The circumstance for other special
treatment specified in Stock Listing Rules of Shenzhen Stock Exchange still exists. Other special
treatment continued for the trading of the stocks of the Company.
4. Index for important information
The above information were also all published in Securities Times and Hong Kong Commercial
Daily and www.cninfo.com.cn.
Date No. Name of announcement
January 22, 1010 2010-0552 Factory real estate announcement
March 12, 2010 2010-0553 Announcement of shareholders' share sale
March 26, 2010 2010-0554 Announcement of amendment of forenotice of earnings for
2009
April 9, 2010 2010-0555 Annual report 2009 and its summary
April 9, 2010 2010-0556 Announcement of applying for cancellation of caution of
delisting risk
April 9, 2010 2010-0557 Notice on holding the Shareholders General Meeting 2009
April 9, 2010 2010-0558 Announcement of the 9th Meeting of the fifth Board of Directors
April 9, 2010 2010-0559 Announcement of the 8th Meeting of the fifth Supervisory
Committee
April 28, 2010 2010-0560 The First Quarterly Report 2010深圳中冠纺织印染股份有限公司
2010 年半年度报告
19/89
April 28, 2010 2010-0561 Forenotice of earnings
May 13, 2010 2010-0562 Announcement of Resolutions of the shareholders’
general meeting in 2009
May 28, 2010 2010-0563 Announcement of canceling caution of delisting risk
June 29, 2010 2010-0564 Announcement of resignation of Mr. Chen Xing, a director
and board secretary of the Company
5. 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 22, 2010 Director &
Secretary office
Telephone
communication
Investor
Inquiry about cancellation of
caution of delisting risk
May 28, 2010 Director &
Secretary office
Telephone
communication
Investor
Inquiry about the Company's
whether the Company has any
plan for reorganization
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.深圳中冠纺织印染股份有限公司
2010 年半年度报告
20/89
Chapter VI. Financial Report
Balance Sheet
June 30, 2010
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
June 30,2010 December 31, 2009
Assets
Consolidated
Parent Company.
Consolidated
Parent Company.
Monetary fund 55,323,423 24,251,724 56,105,626 24,960,502
Trading financial
assets 340,174
273,070
171,221
85,725
Bill receivable
Account receivable 821,214 2,398,250 488,528
Prepayments 19,506 942,126
Interest receivable 5,480
Other account
receivable 832,302
79,709,644
1,227,246
81,416,712
Inventories 900,806 440,462 856,553 444,557
Non-current asset
due in 1 year
Other current asset
Total of current assets 58,237,425 104,674,900 61,706,502 107,396,024
Non-current assets：
Disposable financial
asset 300,312 309,399
Expired investment in
possess
Long-term receivable
Long term share
equity investment 74,002,324 40,936,638 68,427,751 41,317,197
Property investment 42,356,944 6,352,925 44,445,185 6,595,088
Fixed assets 18,445,783 14,727,746 18,772,745 14,867,709
Construction in
progress
Engineering material
Fixed asset disposal -7,237 -7,237
Intangible assets 2,128,294 2,128,294 2,117,958 2,117,958
R & D petrol深圳中冠纺织印染股份有限公司
2010 年半年度报告
21/89
Goodwill 5,487,679 5,538,694
Long-germ
expenses to be
amortized
Differed income tax
asset
Other non-current
asset
Total of non-current
assets 142,714,099 64,138,366 139,611,732 64,897,952
Total of assets 200,951,524 168,813,266 201,318,234 172,293,976
Legal representative：Hu Yongfeng Financial Manager：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
2010 年半年度报告
22/89
Balance Sheet（Cont’d）
June 30, 2010
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
June 30, 2010 December 31, 2009
Liabilities and owners’
equity Consolidated
Parent Company.
Consolidated
Parent Company.
Current Liabilities
Short-term loans
Trade off financial
liabilities
Bill payable
Accounts payable 1,081,888 116,324 4,101,084 1,793,753
Advance payment 3,139,055 3,086,520 4,555,433 3,448,961
Salaries payable to Staff 513,149 480,847 559,967 559,967
Taxes payable 2,860,262 1,711,918 2,519,063 1,192,456
Dividends payable 1,308,473 1,320,637
Other payable 31,222,956 664,775 30,926,067 652,984
Non-current liabilities
due in 1 year
Other current liabilities 1,484,184 1,151,162 1,139,376 1,139,376
Total current liabilities 41,609,967 7,211,546 45,121,627 8,787,497
Non-Current liabilities:
Long-term loan 1,452,196 1,534,300
Long-term payable 9,132,664 9,217,564
Special payable 959,944 900,468 908,839 908,839
Accrued liabilities
Deferred income tax
liabilities 900,468 4,255,050 968,868 4,294,606
Other Non-current
liabilities
Total Non-current
liabilities 12,445,272 5,155,518 12,629,571 5,203,445
Total liabilities 54,055,239 12,367,064 57,751,198 13,990,942
Shareholders’ Equity
Share capital 169,142,356 169,142,356 169,142,356 169,142,356
Capital surplus 39,290,866 31,606,598 39,297,104 31,606,598
Less: Shares in stock
Surplus reserves 26,704,791 26,309,287 26,704,791 26,309,287
Common risk provision
Reserved profit -97,355,237 -76,928,223 -102,767,941 -76,527,638
Different of foreign 8,640,777 6,316,184 10,682,638 7,772,431深圳中冠纺织印染股份有限公司
2010 年半年度报告
23/89
currency translation
Total of owner’s equity
belong to the parent
company 146,423,553 156,446,202 143,058,948 158,303,034
Minor shareholders’ equity 472,732 508,088
Total of owners’ equity 146,896,285 156,446,202 143,567,036 158,303,034
Total of liabilities and
owners’ equity 200,951,524 168,813,266 201,318,234 172,293,976
Legal representative：Hu Yongfeng Financial Manager：Zhang Jinliang The person in change of the financial Dept：Ren
Changzheng
Profit statement
June 30, 2010
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
January-June 2010 January-June 2009
Items
Consolidated Parent Company Consolidated Parent Company
I. Total Operating income 5,280,588 527,589 12,487,503 4,764,455
Including：Operating income 5,280,588 527,589 12,487,503 4,764,455
II. Total Operating cost 6,677,394 1,034,818 16,236,179 6,307,134
Including：Operating cost 2,360,424 -292,095 11,614,318 4,110,580
Operating taxes and extras
Sales expenses 377,292 1,147,721
Administrative expenses 4,297,439 2,705,698 3,061,042 2,861,603
Financial expenses -357,761 -1,378,785 413,098 -665,049
Loss of devaluation of assets
Add：Changing income of fair value -17,686 42,833
Investment income 6,779,702 106,843 2,328,987
Including：Investment income on
affiliated company and joint venture
III. Operating profit 5,365,210 -400,386 -1,376,856 -1,542,679
Add：Non-operating income 26,598 24,259
Less：Non-operating expenses 259 199 7,845
Including：Disposal loss of non-current
assets
IV. Total profit 5,364,951 -400,585 -1,358,103 -1,518,420
Less：Income tax expenses
V. Net profit 5,364,951 -400,585 -1,358,103 -1,518,420深圳中冠纺织印染股份有限公司
2010 年半年度报告
24/89
Net profit attributable to the Parent
company
5,412,704 -400,585 -1,265,877 -1,518,420
Minority shareholders’ gain and losses -47,753 -92,226
VI. Earnings per share
（i）Basic earning per share 0.03 -0.01
（ii）Diluted earning per share 0.03 -0.01
VII. Other comprehensive income -2,035,702 -1,456,247 362,075 134,198
VIII. Total comprehensive income 3,329,249 -1,856,832 -996,028 -1,384,222
Total comprehensive income
attributable to the owner of the parent
company 3,316,852 -1,856,832 -996,028 -1,384,222
Total comprehensive income
attributable minority shareholders 12,397
Legal representative：Hu Yongfeng Financial Manager：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
2010 年半年度报告
25/89
Cash flow statement
June 30, 2010
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
January-June 2010 January-June 2009
Items
Consolidated Parent Consolidated Parent
I.Cash flows arising from operating
Cash received from sales of goods 6,350,921 2,601,112 15,807,003 7,255,478
Net Increase of Disposition 171,272 171,272 - -
Rebated taxes received 186,855 105,777 1,282,632 468,417
Other business related cash receipts 1,075,375 560,865 3,254,734 1,473,996
Subtotal of cash flow in from operating 7,784,423 3,439,026 20,344,369 9,197,891
Cash paid for purchase of goods and 2,254,184 1,254,184 10,333,324 5,815,897
Cash paid to and for employees 1,723,236 980,423 1,848,412 992,055
Taxes paid 1,116,582 466,421 1,200,808 589,233
Other business related cash 3,062,291 1,395,215 4,568,471 1,813,764
Subtotal of cash flow out from 8,156,293 4,096,243 17,951,015 9,210,949
Net cash flows arising from operating -371,870 -657,217 2,393,354 -13,058
II.Cash flow generated by investing
Cash received from investment
Cash received as investment gains 1,595 1,777 -
Net cash retrieved from disposal of fixed
assets, intangible assets, and other
7,270 7,270 39,669 30,854
Net cash received from disposal of
Other investment-related cash received
Sub-total of cash inflow due to 8,865 7,270 41,446 30,854
Cash paid for construction of fixed assets, 133,824 56,478 68,684
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries
Other cash paid for investment activities
Sub-total of cash outflow due to 133,824 56,478 68,684 -
Net cash flow generated by investment -124,959 -49,208 -27,238 30,854
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from - - - -
Cash to repay debts
Cash paid as dividend, profit, or
Incl: Dividend and profit paid by
Other cash paid for financing activities
Sub-total of cash outflow due to - - - -
Net cash flow generated by financing - - - -
IV.Influence of exchange rate alternation -285,374 -2,353 -76,066 4,066
V.Net increase of cash and cash -782,203 -708,778 2,290,050 21,862
Add: balance of cash and cash 56,105,626 24,960,502 61,368,428 30,750,018
VI. Balance of cash and cash equivalents 55,323,423 24,251,724 63,658,478 30,771,880深圳中冠纺织印染股份有限公司
2010 年半年度报告
26/89
Legal representative：Hu Yongfeng Financial Manager：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
2010 年半年度报告
27/8928/89
Consolidated Statement of Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2010 Unit :RMB
January-June 2010
Items
Share Capital
Capital
reserves
Less:
Shares in
stock
Special
reserve
Surplus
reserves
Common
risk
provisions
Attributable
profit
Other
Minor
shareholders’
equity
Total of owners’
equity
I.Balance at the end of last
year
169,142,356 39,297,104 26,704,791 -102,767,941 10,682,638
Add: Change of
accounting policy
-
Correcting of previous
errors
-
Other -
II.Balance at the beginning
of current year
169,142,356 39,297,104 - - 26,704,791 - -102,767,941 10,682,638 508,088 143,567,036
III.Changed in the current
year
- -6,238 - - - - 5,412,704 -2,041,861 -35,356 3,329,249
（I） Net profit 5,412,704 -47,753 5,364,951
（II）Other misc.income -6,238 -2,041,861 12,397 -2,035,702
Total of (I) and (II) - -6,238 - - - - 5,412,704 -2,041,861 -35,356 3,329,249
(III) Investment or
decreasing of capital by
owners
- - - - - - - - - -
1. Capital inputted by
owners
-
2．Amount of shares
paid and accounted as
owners’ equity
-
3. Other -29/89
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus
reserves
-
2.Providing of common
risk provisions
-
3．Allotment to the owners
(or shareholders)
-
4．Other -
(V) Internal transferring of
owners’ equity
- - - - - - - - - -
1. Capitalizing of capital
reserves (or to capital
shares)
-
2. Capitalizing of surplus
reserves (or to capital
shares)
-
3．Making up losses by
surplus reserves.
-
4. Other -
(VI) Special reserves - - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
this term
169,142,356 39,290,866 - - 26,704,791 - -97,355,237 8,640,777 472,732 146,896,285
Legal representative：Hu Yongfeng Financial Manager：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng30/89
Consolidated Statement of Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2010 Unit :RMB
January-June 2009
Items
Share Capital
Capital
reserves
Less:
Shares in
stock
Special
reserve
Surplus
reserves
Common
risk
provisions
Attributable
profit
Other
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 11,237,577 884,454 130,957,788
Add: Change of
accounting policy
-
Correcting of previous
errors
-
Other -
II.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
III.Changed in the current
year
- 131,304 - - - - -1,265,877 230,771 -72,582 -976,384
（I） Net profit -1,265,877 -92,226 -1,358,103
（II）Other misc.income 131,304 230,771 19,644 381,719
Total of (I) and (II) - 131,304 - - - - -1,265,877 230,771 -72,582 -976,384
(III) Investment or
decreasing of capital by
owners
- - - - - - - - - -
1. Capital inputted by
owners
-
2．Amount of shares
paid and accounted as
owners’ equity
-31/89
3. Other -
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus
reserves
-
2.Providing of common
risk provisions
-
3．Allotment to the owners
(or shareholders)
-
4．Other -
(V) Internal transferring of
owners’ equity
- - - - - - - - - -
1. Capitalizing of capital
reserves (or to capital
shares)
-
2. Capitalizing of surplus
reserves (or to capital
shares)
-
3．Making up losses by
surplus reserves.
-
4. Other -
(VI) Special reserves - - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. 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
Legal representative：Hu Yongfeng Financial Manager：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng32/89
Parent Company Statement on Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2010 Unit :RMB
January-June 2010
Items
Share Capital
Capital
reserves
Less:
Shares in
stock
Special
reserve
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 - -76,527,638 7,772,431 158,303,034
Add: Change of
accounting policy
-
Correcting of
previous errors
-
Other -
II.Balance at the
beginning of current
year
169,142,356 31,606,598 - - 26,309,287 - -76,527,638 7,772,431 158,303,034
III.Changed in the
current year
- - - - - - -400,585 -1,456,247 -1,856,832
（I） Net profit -400,585 -400,585
（II）Other
misc.income
-1,456,247 -1,456,247
Total of (I) and (II) - - - - - - -400,585 -1,456,247 -1,856,832
(III) Investment or
decreasing of capital by
owners
- - - - - - - - -
1. Capital inputted
by owners
-33/89
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 (or
shareholders)
-
4．Other -
(V) Internal
transferring of owners’
equity
- - - - - - - - -
1. Capitalizing of
capital reserves (or to
capital shares)
-
2. Capitalizing of
surplus reserves (or to
capital shares)
-
3．Making up losses by
surplus reserves.
-
4. Other -
(VI) Special reserves - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
this term
169,142,356 31,606,598 - - 26,309,287 - -76,928,223 6,316,184 156,446,202
Legal representative：Hu Yongfeng Financial Manager：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng34/89
Parent Company Statement on Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2010 Unit :RMB
January-June 2009
Items
Share Capital
Capital
reserves
Less:
Shares in
stock
Special
reserve
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 -
II.Balance at the
beginning of current
year
169,142,356 31,606,598 - - 26,309,287 - -68,418,602 8,029,652 166,669,291
III.Changed in the
current year
- - - - - - -1,518,420 134,198 -1,384,222
（I） Net profit -1,518,420 -1,518,420
（II）Other
misc.income
- 134,198 134,198
Total of (I) and (II) - - - - - - -1,518,420 134,198 -1,384,222
(III) Investment or
decreasing of capital by
owners
- - - - - - - - -
1. Capital inputted
by owners
-
2．Amount of -35/89
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 (or
shareholders)
-
4．Other -
(V) Internal
transferring of owners’
equity
- - - - - - - - -
1. Capitalizing of
capital reserves (or to
capital shares)
-
2. Capitalizing of
surplus reserves (or to
capital shares)
-
3．Making up losses by
surplus reserves.
-
4. Other -
(VI) Special reserves - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
this term
169,142,356 31,606,598 - - 26,309,287 - -69,937,022 8,163,850 165,285,069
Legal representative：Hu Yongfeng Financial Manager：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
2010 年1 月1 日至2010 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）
36/89
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, 2010, the total share capital was 169,142,356 million shares, of which
circulating A-share 99,720,453 shares, circulating B-share 69,421,903. of which Union
Holdings Co., Ltd. (hereinafter referred to Union Holdings ) holding limit-sale A-share
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 circulating A –share 5,821,089 shares, accounting for 3.44% 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, 2010, 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 Company and its subsidiaries are collectively referred to as "the
Group".
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
The financial statements was prepared on the basis of the Group's continuous operation.深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
37/89
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
There is no Accounting policies, accounting estimation and the method of preparing consolidated
financial statements in 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 and Veaopel 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 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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
38/89
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 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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
39/89
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 which have no quotation in the active market and the fair value
can not be reliably measured, will not be transferred back.
7. Account receivable and provisions for bad debts
The Group adopted the method of counter compensation for the possible bad debt
losses, which were drown provision for bad debt by the method of individual
recognition at period end and were included in the current loss and gain. The receivables深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
40/89
which were not to be recovered, after being approved by the Group, would be regarded
as bad debt loss and the provision for bed debt would be written 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.
The Group divided the receivables which were not to be recovered with evidence
or probably not to be recovered as special asset particular asset portfolio and provision
for bad debt would be fully accounted.
The accounting ratios for provision for bad debts which were divided accounting to
account age were as follows:
Age Proportion
Within 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. Inventories
(1)The inventories of the Company include raw materials, work-in-process, finished
products, low-value and easily-worn articles and packing articles and are stated at the
lower of cost and net realizable value.
Perpetual inventory system was implemented for inventory, the inventory would be
priced according to actual cost; upon receiving or sending inventory, weighted average
method would be used. The low value consumable products would be amortized by
method of one-time writing off.
The inventory at year end can be priced by depending on which is lower between cost
and realizable net value if the inventory were damaged or full or partly unused or the
sale price lower than cost and other reasons. 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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
41/89
materials with large quantity and low unit price shall be drown provision for devaluation
according to categories.
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
1. Long-term equity investment
Long-term equity investments mainly include the equity investments which are held by
the Group and the ones that the units being invested can be controlled or jointly
controlled, or the equity investments which have not quotation in active market and the
fair value can not be reliably measured.
Joint control refers to the control that common control on some economic activities
according to contract. The references for the determination of common control are the
business activities which any operating party can not be controlled independently; the
decisions relating to basic operating activities of the joint venture enterprise are to be
agreed by all joint parties.
Significant impact refers to having the right to participate in decision making on
financial and operating policies of the units being invested but can not control or jointly
control the making of these policies. The determining reference of significant impact is
to own 20% (inclusive) or more but less than 50% of the voting shares directly owned
by the Group or owned through subsidiaries, unless there is clear evidence that under
that circumstance the production operating decision can not be participated and no
major influence will formed.
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,深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
42/89
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 using the method of cost accounting, the long-term equity investments were
priced by the initial investment costs. When the investment incomes are only limited to
the distribution amount of accumulated net profit after the unit being invested accepting
the investment, and the profit or cash dividends declared by the unit being invested will
be recovered as initial investment cost to reduce the book value of the investment.
When using the equity method accounting, the current investment gains and losses are
the share of net losses and gains to be owned or shared and achieved in the current year
by the unit being invested. When determining the share to be shared by the unit being
invested, on the basis of the fair value of the identifiable assets, according to the
accouting policy and accounting period of the Group, offsetting the internal transaction
loss and gain and the part that the equity proportion attributable to the joint enterprise
and united enterprise, and confirm the net profit of the unit being invested after profit
adjustment.
When confirming the net loss to be shared by the unit being invested, reduce the book
value of long-term equity investment and other long-term equity of the unit being
invested to zero. In addition, if the Group bears the obligation to undertake additional
loss for the units being invested, then confirm the predicted liability according to
predicted obligation and be included in the current loss and gain. The profit achieved by
the units being invested in future period, will be reconfirmed as income shares after the
Group recovered the losses not confirmed.
For the long-term equity investments on joint venture enterprises and joint owned
enterprises held before the first implementation date, if existing the debit difference
relating to the equity investment, the debit difference of equity investment, after
deducting the investment loss and gain according to the original remained period,
should be confirmed as investment gains and losses.深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
43/89
10. Investment real estate
The investment real estates of the Group are the rental buildings.
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 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 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
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.深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
44/89
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.
Follow-up expenditures on fixed assets, including major repair expenses, expenses on updated
improvement and other, To confirm compliance with the conditions of fixed assets, it shall be
included in the cost fixed assets, the recognition of book value of replaced the part shall be
terminated; If not meeting the conditions of confirming fixed assets, they should be
included in the current period.
In addition to the fixed assets which depreciation and impairment had already fully
accounted and the lands which are separately accounted, the Group accounts
depreciation on all fixed assets. The method of average number of years will be used
when accounting depreciation which will be included in the costs and expenses of the
relevant assets. The predicted net residual rate, classified depreciation years and
depreciation rates are as follows:
No
Type Evpected useful
life（Year）
Estinated residual
value rate
Annual depreciatio
n rate（%）
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 Group 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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
45/89
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 include interest on borrowings, amortization of discount or premium,
as well as the supporting costs and exchange difference due to foreign currency
borrowing. The borrowing costs which can be directly attributed to capitalized condition,
and taken place in the capital expenditure, borrowing costs have taken place, in order to
meet the assets available for sale or purchase of the necessary state of construction or
production activities, the capitalization begins; when the construction or purchase of the
conditions of production in line with the capital assets reached the sale state, the
capitalization should stop. And the rest borrowing costs should be recognized as
expenses in the current period.
The expenses on interests for the specialized loan happened in current period
deducting the interest income from the bank or the investment income from temporary
investment should be capitalized; the general assets of the borrower in accordance with
the cumulative excess of expenditure over the assets of the specialized part of the
borrower multiplied by the weighted average expenditure occupied by the weighted
average borrowings to determine the amount of capitalization, until the restart of
construction or purchase of assets.
The assets which meet capitalization conditions, refer to the fixed assets, investment
real estates and other inventories which are constructed for a long time (usually more
than one year) to achieve the intended use or sale of state to.
If meet the capitalization conditions or non-normal breaks occurred in the course of
production and the break time is more than three months, then the capitalization of
borrowing costs shall be suspended; when the acquisition or construction or production
meet the conditions of capitalization and achieve the predicted use or sale state, the深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
46/89
capitalization of borrowing costs shall be stopped.
14. Intangible assets
The intangible assets of the Group include land use rights and computer software. Including:
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.
Since the date of selling land use rights, they are amortized according to the years
sold; patent technology, non-patent technology and other intangible assets are amortized
in accordance with the expected number of years, the benefited years specified in the
contract and the effective length according to law. The amount to be amortized will be
included in the related asset costs and current loss and gain according to the benefited
targets.
The predicted service life of the intangible assets and amortization methods should
be rechecked and adjusted at the end of each year. Recheck the intangible assets with
uncertain service life in each accounting period should be rechecked, if there is evidence
showing that the service life of the intangible asset is limited, then estimate its service
life and amortized it within the predicted service life.
15. Impairment in non-financial assets
The Group conducts inspection on long-term equity investments, fixed assets,
construction in progress, intangible assets with limited service life on every balance
sheet date. 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.深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
47/89
(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
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 amortized expenses
The long-term expenses of the Group to be amortized refer to all the expenses
already paid but should be undertaken in the current period or in the coming period with
amortization period more than 1 year (not including 1 year), the expenses will be
amortized averagely in the benefit period. If the long-term prepaid expenses can not
benefit from subsequent accounting period, then all amortization value of the project not
amortized should be transferred to the current loss and gain.
18. Employee’s salary
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.
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.
19. Predicted liabilities
When the external security, commercial acceptance bill discount, pending
litigation or arbitration, product quality assurance or business related matters subject to
the following conditions at the same time, the Group will identify it as liabilities: the
obligation is a present obligation of the Group; the enforcement of the obligation is
likely to lead to the outflow of economic benefits; the amount of the obligation can be
measured reliably.深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
48/89
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. Principle for confirmation of income
The Group's revenues mainly include: incomes from sales of goods and transferring
assets use right. The principle of income confirmation is as follows:
When the Group had transferred the ownership of the risks and rewards of the
commodities to the buyer, the Group does not keep the management right relating to
ownership and does not implement effective control on the commodities sold out, the
income amount can be reliably measured, and the related economic benefit will possibly
flow into the enterprise, and when the related costs may happen or had happened can be
measured reliably, the realization of the commodity sold out should be confirmed.
The economic interests relating to transaction can flow into the company, and the
relevant incomes and costs can be reliably measured, the sales income of transferring
assets use right shall be confirmed.
21. Lease
At the beginning date of lease, the Group divided leasing into financing lease
and operating lease.
Financing lease essentially refers to the lease that transferred all the risks and rewards relating
to asset ownership. As the lessee, on the beginning date of lease, the Group took lower one in the
cash of the fair value and the lowest lease payment as the book-keeping value of the fixed assets
leased in by financing, and the lowest lease payment as the accounting value of the long-term
payment, and the difference between the them will be recorded as financing costs not confirmed.
Operating lease refers to the other lease apart from financing lease. As the lessee,
during the lease period, the Group included the related asset cost and current losses and
gains by the straight-line method during the lease period. The rent of the Group will be
confirmed as income during the lease period by the 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).深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
49/89
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
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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
50/89
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
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深圳中冠纺织印染股份有限公司财务报表附注
2010 年1 月1 日至2010 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）
51/89
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. Enterprise income tax
The interest rate of corporate income tax of the company and subsidiaries in China
mainland is 25%, according to the State Council on December 26, 2007, of the [2007]
No. 39 Notice on the Implementation of Enterprise Income Tax Preferential Policies for
the Transition, the enterprise income tax rate of the Company and the subsidiaries in
China mainland gradually transited from 15% to 25%, the company implement the
transition rate of 22% in 2010. 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%, 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 12%, 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
2010 年1 月1 日至2010 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）
52/89
VII.Corporation Consolidation and Consolidation Financial statement
（1）Subsidiaries
Proportion%
Name
Registration
plance
Quality
Registered
capital
Business scope Investment amount
Direct
Indirect Vote right
Proportion%
Whether
the
merger of
statement
Notes
Hong Kong
Victor Onward
Co.
Hongkong 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
Shengzhong
Company
Hongkong Trade
1,000,000
（HKD）
Sales of Corduroy, dyed cloth
and printed cloth
1,000,000
（HKD）
100% 100% Yes 2
Nanhua
Company
Shenzhen Production
85,494,700
（HKD）
Production and sales of printed
cloth and dyed cloth
HKD 16,874,255
+ RMB 4,240,100
54.82% 14.62% 69.44% Yes 3
Xinye
Company
Hongkong Trade
10,000
（HKD）
Sales of printed cloth and dyed cloth
10,000
（HKD）
100% 100% Yes 4
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 5深圳中冠纺织印染股份有限公司
2010 年半年度报告
39/65
1.The Company invested HKD 2,400,002 in 1984 to establish Hong Kong Victor Onward Company in
Hong Kong.
2. Shengzhong Company was established in November 9 1993, registered capital 1 million Hong Kong dollars,
Hong Kong Victor Onward holding 100% equity.
3. Nanhuan Company was established in July 21, 1988, registered capital 85.49 million Hong Kong dollars, by
June 30, 2010 the shareholding structure as follows:
Name of investor
Year-beginning
amount
Proportion% Year-end amount Proportion
Shenye Union (Hongkong)Co.,
Ltd. 26,127,180.32 30.56% 26,127,180.32 30.56%
The Company 46,868,194.54 54.82% 46,868,194.54 54.82%
Hong Kong Victor Onward Company 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%
4. Xinye Company invested HKD10,000 to establish Industry Company in Hong Kong in December
1996. Nanhua Company Holding’s 100% of the equity.
5. Shenzhen East Asia Company was established in February 28, 2007, registered capital 3 million yuan, the
company invested 1.53 million yuan, holding 51% equity, Nanjing East Asia Textile Co., Ltd. invested 1.47 million
yuan, holding 49% equity.
(I). Foreign currency translation
Except that Shenzhen East Asia Company Company has RMB as basic accounting currency, the
company and other subsidiaries have Hong Kong dollars as basic accounting currency. The financial
statements are reflected after conversion of RMB and the foreign currency conversion methods were
described in Note V, 5, of which the spot exchange rate of HK dollar to RMB was 0.8805 at year
beginning, and the spot exchange rate at year end was 0.8724, the approximate exchange rate of the
spot exchange rate uses the current average exchange rate 0.8764.
VIII. Notes to the main items of consolidated financial statements and the Company's financial
statements
The following financial statements disclosed below, except where indicated otherwise, "year
beginning" means January 1, 2010, "year end" means June 30, 2010, "this year" means from January
1, 2010 to June 30, "last year" means from January 1, 2009 to June 30, the currency unit RMB.
1.Monetary Capital
Year-end balance Year-beginning balance
Items Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
Stock cash 132,304 182,181深圳中冠纺织印染股份有限公司
2010 年半年度报告
54/89
RMB 125,943 1.0000 125,943 173,224 1.0000 173,224
HKD 7,292 0.8724 6,361 10,173 0.8805 8,957
Bank deposit - 44,882,082 45,493,122
RMB 19,163,927 1.0000 19,163,927 19,948,646 1.0000 19,948,646
HKD 29,479,765 0.8724 25,718,147 29,004,367 0.8805 25,538,345
USD 1 6.7909 8 898 6.8282 6,131
Other monetary
capital
- 10,309,037 10,430,323
RMB 10,273,157 1.0000 10,273,157 10,395,615 1.0000 10,395,615
HKD 41,128 0.8724 35,880 39,419 0.8805 34,708
Total 55,323,423 56,105,626
* 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
Item Year-end balance Year-beginning balance
Equity tool investment for
transaction. 340,174 171,221
Total 340,174 171,221
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 income
RMB -17,686, its cash has no major restrictions.
3. Account receivable
(1) Risk classification of accounts receivable
Year-end balance Year-beginning balance
Book Balance
Provision
for bad
debts
Book Balance
Provision
for bad
debts
Items
Amount
Proporti
on%
Amount
Amount
Proporti
on%
Amount
Receivables with
large individual
amount. 3,978,007 29.45% 3,961,302 4,014,942 26.41 3,998,082
Receivables without
large individual
amount, but with
great risk after 4,667,513 34.56% 3,920,053
6,280,260 41.32 3,956,455深圳中冠纺织印染股份有限公司
2010 年半年度报告
55/89
Year-end balance Year-beginning balance
combined according
to risk characteristics
Other minor
receivables 4,860,303 35.99% 4,803,248
4,905,430 32.27 4,847,845
Total 13,505,823
100.00
% 12,684,609 15,200,632 100.00 12,802,382
(2）The accounts receivable at year end with significant single amount or the insignificant
amount which were tested separately.
Name
December
31, 2009
Provision for
bad debts
Proportion%
Age
Reasons
Victor Textile (Hong
Kong) Ltd
1,708,932 -
1-2
years
Shengzhong 1,692,227 100%
Over 3
years
Insolvent
company,
to be
written off
Carnival Index
International Ltd
1,182,157 1,182,157 100%
Over 3
years
TAI YANG ENTERPRISE CO.,
LTD.
1,086,918 1,086,918 100%
Over 3
years
Other minor receivables
4,860,303 4,803,248 98.83%
Over 3
years
The
company
had stopped
production,
and no
business
contact for
a long time.
Total 8,838,311 8,764,550 99.17%
* Shengzhong Company, a subsidiary of the Company, was planned to be deregistered. The
Company made full provision for bad debts in respect of the accounts of RMB 1,707,939 receivable
from this company. On consolidation, these accounts receivable were eliminated, but corresponding
provision for bad debts was not eliminated.
(3)Age of account receivable
Year-end balance Year-beginning balance
Items
Amount Proportion%
Provision
for bad debts Amount Proportion%
Provision
for bad debts
Within
1 year 3,056,121 20.11 39,939
1－2
years 1,473,033 10.90 39,572 1,147,136 7.55 114,714
2－3 1,136,583 8.42 113,659 18,836 0.12 1,732,142深圳中冠纺织印染股份有限公司
2010 年半年度报告
56/89
Year-end balance Year-beginning balance
Items
Amount Proportion%
Provision
for bad debts Amount Proportion%
Provision
for bad debts
years
Over
3
years 10,896,207 80.68 12,531,378 10,978,539 72.22 10,915,587
Total 13,505,823 100.00 12,684,609 15,200,632 100.00 12,802,382
(4) 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.
(5) The front 5 units’ information of account receivable
Unit name Relation with
the company
Amount Fixed year
Percentage of
account
receivable
Carnival Index International Ltd
Non-Related
parties 1,182,157
Over 3
years 8.75%
Shenzhen Jinrongyuan Development
Co., Ltd.
Non-Related
parties 808,092
1-2
years 5.98%
VEGA GARMENT CO., Ltd
Non-Related
parties 649,852
2-3
years 4.81%
Victor Textile (Hong Kong) Ltd
Non-Related
parties 1,708,932
1-2
years 12.65%
Tai Yang Enterprise Co.,Ltd
Non-Related
parties 1,086,918
Over 3
years 8.05%
Total 5,435,951 40.25%
(6)Accounts receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 9,873,549 0.8724 8,613,684 10,399,223 0.8805 9,156,516
USD 587,260 6.8282 4,009,929
Total 8,613,684 13,166,445
4. Prepayments
Year-end balance Year-beginning balance
Items amount Proportion（%） amount Proportion
（%）深圳中冠纺织印染股份有限公司
2010 年半年度报告
57/89
Within 1 year 19,506 100.00 942,126 100.00
Total 19,506 942,126
（1） The prepayments at year end decreased RMB 922,620 over those in the year beginning,
with increases rate 97.93%, mainly due to the subsidiary of the prepayments of the company
Shenzhen East Asia Company decreased.
(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) The prepayments include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 22,359 0.8724 19,506 24,307 0.8805 21,402
Total 19,506 21,402
5.Interest receivable
Items Year-beginning
balance
Increase in the
current period
Decrease in the
current period
Year-end
balance
Fixed deposits 5,480 5,480
Total 5,480 5,480
6. Other receivables
（1）Risk classification of other receivable
Year-end balance Year-beginning balance
Book account
Provision for
bad debts
Book account
Provision for
bad debts
Items
Amount Proportion% Amount Amount Proportion% Amount
Receivables
with large
individual
amount.
3,351,096 75.52 3,351,096 3,382,210 69.52 3,382,210
Receivables
without large
774,482 17.45 253,727 1,168,889 24.02 256,083深圳中冠纺织印染股份有限公司
2010 年半年度报告
58/89
individual
amount, but with
great risk after
combined
according to
risk
characteristics
Other minor
receivables
311,547 7.03 314,440 6.46
Total 4,437,125 100.00 3,604,823 4,865,539 100.00 3,638,293
Other receivables adopted specific identification method on the provision for bad debts.
(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) Age of Other receivable account
Year-end balance Year-beginning balance
Items
Amount Proportion%
Provision
for bad
debts Amount Proportion%
Provision
for bad
debts
Within 1
year 314,353 6.46
1 － 2
years 311,461 7.02 52,688 1.08
2 － 3
years 52,203 1.18 3,253,794 66.88 2,482,277
Over 3
years 4,073,461 91.80 3,604,823 1,244,704 25.58 1,156,016
Total 4,437,125 100.00 3,604,823 4,865,539 100.00 3,638,293
(3) The front 5 units’ information of Other account receivable
Name
Relation
with the
company
Amount
Account
Age
Proportion
(%) Content
Nanjing East Asia C Non-Relat
ed parties
1,315,041
Over 3
years
29.64% Business
CCB.Guangdong
Shunde Branch
Non-Relat
ed parties
1,070,090
Over 3
years
24.12% Business深圳中冠纺织印染股份有限公司
2010 年半年度报告
59/89
Name
Relation
with the
company
Amount
Account
Age
Proportion
(%) Content
hangzhou Dongfeng
Textile Printing &
dyeing Equip
Non-Relat
ed parties
966,052 Over 3
years
21.77% Business
Shanghai Huayinke
Industry Co., Ltd.
Non-Relat
ed parties
178,348 Over 3
years
4.02% Business
Shenzhen
Huaxinfeng Industry
Co., Ltd.
Non-Relat
ed parties 76,702 Over 3
years
1.73% Business
Totla 3,606,233 81.27%
(4) Ending balance exclude accounts receivable from related parties.
(5)Other receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
Currency of
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 118,295 0.8724 103,201 1,202,955 0.8805 1,059,202
Totla 103,201 1,059,202
7.Provision for impairment of inventories
（1） Type
Year-end balance Year-beginning balance
Items
Book
balance
Provision
for bad
debts
Book value Book
balance
Provision
for bad
debts
Book value
Raw
materials 2,185,243 1,744,780 440,463 2,205,557 1,761,000 444,557
Stock
goods 649,276 188,933 460,343 602,685 190,689 411,996
Total 2,834,519 1,933,713 900,806 2,808,242 1,951,689 856,553
(2) Provision for impairment of inventories
Items
Year-beginning
balance
Increase
in the
Decrease in the current
period
Exchange
rate
Year-end
balance深圳中冠纺织印染股份有限公司
2010 年半年度报告
60/89
Transferred
back
Reselling
Raw
materials 1,761,000
-16,220 1,744,780
Stock
goods 190,689
-1,756 188,933
Total 1,951,689 -17,976 1,933,713
8. Financial assets for sale
Items Year-end balance (Fair
value )
Year- beginning balance
(Fair value )
Equity tools for sale. 300,312 309,399
Total 300,312 309,399
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 has been included in the public capital reserve.
9.Long-term equity investment
（1）Long-term equity investment
Items Year-end balance Year-beginning balance
The cost of long-term equity
investment accounting
The equity method long-term
equity investment
74,002,324 68,427,751
Total of long-term equity
investment
74,002,324 68,427,751
Less ： Long-term equity
investments for impairment
Net value long-term equity
investment
74,002,324 68,427,751
(1) The equity method long-term equity investment
Name
Proportion
%
Vote
proportion
%
Initial amount
Year-beginning
balance
change
Exchange rate
change
Year-end
balance
1.Zhejiang Union
Hangzhou Bay
Chuangye Co.,
25% 25% 58,588,403 68,427,751 6,606,835 -1,032,262 74,002,324深圳中冠纺织印染股份有限公司
2010 年半年度报告
61/89
Ltd.
2. Shenzhen
Lianchang
Printing & dyeing
Co., Ltd.
37.5% 37.5% 1,403,456 -
Total 59,991,859 68,427,751 6,606,835 -1,032,262 74,002,324
Zhejiang Union Hangzhou bay chuangye Co., Ltd. (hereinafter named“Hangzhoubay”) current change
including current profit confirmed by equity method is RMB26,427,340.
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 Chuangye
Co., Ltd.
Hangzhou
Real
estate
315,794,486 377,257,277 26,427,340
2. Shenzhen Lianchang
Printing & dyeing
Co., Ltd.
Shenzhen
Printing
and
dyeing
-4,881,960 - -
Total 310,912,526 377,257,277 26,427,340
10. Property investment
The investment in real estate companies use the cost model measures
items
Amount of
year-beginning Increase decrease
Exchange
rate
change
Amount of
year-end
Original Value 104,963,930 -966,789 103,997,141
House, Building 104,963,930 -966,789 103,997,141
Accumulated
amortisation
60,518,745 1,678,871 -557,419 61,640,197
House, Building 60,518,745 1,678,871 -557,419 61,640,197
Book Net value 44,445,185 -1,678,871 -409,370 42,356,944
House, Building 44,445,185 -1,678,871 -409,370 42,356,944
Impairment Provision -
House, Building -深圳中冠纺织印染股份有限公司
2010 年半年度报告
62/89
Book value 44,445,185 -1,678,871 - -409,370 42,356,944
House, Building 44,445,185 -1,678,871 - -409,370 42,356,944
11． Fixed assets
(1)Fixed assets
Items
Amount of
year-beginning Increase decrease
Exchange
rate change
Amount of
year-end
Original Value. 175,761,050 7,800 9,795 -1,618,878 174,140,177
House and building 52,395,040 -482,594 51,912,446
Machine and
Equipment
107,859,002 -993,454 106,865,548
Transportation
Equipment
5,076,849 -46,761 5,030,088
Office equipment
and other
10,430,159 7,800 9,795 -96,069 10,332,095
-
Accumulated
amortisation
121,008,010 161,852 9,795 -1,114,566 120,045,501
House and building 28,385,708 71,959 -261,452 28,196,215
Machine and
Equipment
81,466,288 -750,360 80,715,928
Transportation
Equipment
4,231,260 77,439 -38,973 4,269,726
Office equipment
and other
6,924,754 12,455 9,795 -63,782 6,863,632
-
Impairment
Provision
35,980,295 -331,403 35,648,892
House and building 16,797,603 -154,717 16,642,886
Machine and
Equipment
16,243,493 -149,614 16,093,879
Transportation
Equipment
2,053 -19 2,034
Office equipment
and other
2,937,146 -27,053 2,910,093
-
Impairment
Provision
18,772,745 -154,052 -172,910 18,445,783
House and building 7,211,729 -71,959 -66,425 7,073,346
Machine and
Equipment
10,149,221 -93,481 10,055,740深圳中冠纺织印染股份有限公司
2010 年半年度报告
63/89
Items
Amount of
year-beginning Increase decrease
Exchange
rate change
Amount of
year-end
Transportation
Equipment
843,536 -77,439 -7,770 758,328
Office equipment
and other
568,259 -4,655 -5,234 558,370
*2.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 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 47,931,382 27,071,301 16,642,886 4,217,196
Machine and
Equipment
106,531,872 80,553,581 16,093,879 9,884,412
Transportation
Equipment
3,206,158 2,885,542 - 320,615
Office equipment and
other
8,610,468 5,436,480 2,910,093 263,895
Total 166,279,879 115,946,904 35,646,858 14,686,117
* The original value of the temporarily idle machinery and equipments to be invested in Nanjing
Textile Printing & dyeing Co., Ltd. was RMB 82,014,221, Accumulated amortisation was RMB
14,192,406, Impairment Provision was RMB 14,324,343 , Book value was RMB 8,201,422.
12. Intangible assets深圳中冠纺织印染股份有限公司
2010 年半年度报告
64/89
The real estate title certificate issued by Shenzhen Land Resource and House Property
Administration for part of the land for the factory building and office building of the Company
located at 26 Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen was obtained
on January 18, 2010. The valid term is from March 5, 1999 to March 4, 2049. RMB 2.17 million
paid for land was transferred into intangible assets - land use right.
13. Goodwill
Items Amount of year-end Amount of
year-beginning
For the goodwill formed from
holding shares of Nanhua Company,
5,487,679 5,538,694
Total 5,487,679 5,538,694
Items
Amount of
year-beginning Increase decrease
Exchange
rate change
Amount of
year-end
Original Value 14,087,145 56,710 - -129,752 14,014,103
Land use right 13,362,084 56,710 -123,074 13,295,720
software 725,061 -6,678 718,383
- -
Accumulated
amortisation
11,722,468 26,866 - -107,972 11,641,362
Land use right 11,244,126 26,866 -103,566 11,167,426
software 478,342 -4,406 473,936
- -
Book Net value 2,364,677 29,844 -21,780 2,372,741
Land use right 2,117,958 29,844 -19,508 2,128,294
software 246,719 -2,272 244,447
- -
Impairment
Provision
246,719 -2,272 244,447
Land use right
software 246,719 -2,272 244,447
- -
Book value 2,117,958 29,844 -19,508 2,128,294
Land use right 2,117,958 29,844 -19,508 2,128,294
software - -深圳中冠纺织印染股份有限公司
2010 年半年度报告
65/89
14. Impairment of assets schedule
Decrease in the current
period
Items
Amount of
year-beginn
ing
Accrual
amount
Switchbac
k
Other
Transfer
out
Exchange
rate
change
Amount of
year-end
Provision for bad
debts
16,440,675 -151,243 16,289,432
Stock Impairment
Provision
1,951,689 -17,976 1,933,713
Impairment of
fixed assets
35,980,295 -331,403 35,648,892
Impairment of
Intangible assets
246,719 -2,272 244,447
Total 54,619,378 -502,894 54,116,484
15. Account payable
（1）Account payable
Items Year-end balance Year-beginning balance
Total 1,081,888 4,101,084
Including：over 1 year 1,081,888 1,666,895
Year-end balance of accounts payable decreased by RMB 3,019,196 and 73.62% over
year-beginning balance mainly because the Company and its subsidiaries continued to suspend
production and their business further deteriorated.
Accounts payable with age over one year included a number of accounts, without single
significant amount of accounts payable.
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.
16. Advanced account
（1）Advanced account
Items Year-end balance Year-beginning balance
Total 3,139,055 4,555,433深圳中冠纺织印染股份有限公司
2010 年半年度报告
66/89
Of the advanced account 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）Advanced Accounts include the following foreign currency balances.
Foreign Year-end balance Year-beginning balance
Currency
of
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 1,613,231 0.8724 1,407,383 2,082,474 0.8805 1,833,618
USD 101,072 6.8282 690,140
Total 1,407,383 2,523,758
17. Wage payables to employees
Items
Year-beginn
ing balance
Increase in
current period
Decrease in
current
period
Year-end
balance
Wage (Including reward ,
allowance and subsidy)
475,806 1,328,863 1,380,022 424,647
Welfarism For employees 32,666 32,666
Social insurance premiums 208,856 208,856
Including :
Medical insurance premiums
61,195 61,195
Basic old-age insurance
premiums
127,402 127,402
Annuity payment 87,388 87,388
Unemployment insurance
expenses
5,639 5,639
Industrial injury insurance
premiums
10,443 10,443
Childbirth insurance premiums 4,177 4,177
Housing accumulation fund
Trade union outlays and
employee education outlays
84,161 4,341 88,502
Other
Total 559,967 1,574,726 1,621,544 513,149
At the period end, the company had no wages payable that belong to arrears.深圳中冠纺织印染股份有限公司
2010 年半年度报告
67/89
18. Fees and taxes payables
Items Year-end balance Year-beginning balance
VAT 571,231 230,032
Business tax 315,712 315,712
Enterprise income tax 1,435,616 1,435,616
Tax on city maintenance and
construction
1,557 1,557
Property tax 293,854 293,854
Individual income tax 464 464
Tariff - -
Stamp tax 241,828 241,828
Total 2,860,262 2,519,063
29. Dividend payable
Items Year-end balance Year-beginning
balance
Reasons of
arrears
State Development &
Investment Co., Ltd*2 261,694 264,127
CITIC Group*2 261,694 264,127
Shenzhen Nanyou (Group)
Company*2 130,848 132,064
Shenye Union（Hongkong）
Co., Ltd. 130,848 132,064
Changzhou Dongfeng
Printing and dyeing plant *2 523,389 528,255
Capital tense*1
Total 1,308,473 1,320,637
*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 four companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
20. Other accounts payable
（1）Other accounts payable
Items Year-end balance Year-beginning balance
Total 31,222,956 30,926,067
Including：Over 1 year 28,222,956 24,607,655深圳中冠纺织印染股份有限公司
2010 年半年度报告
68/89
（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) Other accounts payable by aging are as follows
Items Arrears
amount Age
Nature or
content
Shenzhen Union property Group
Co., Ltd. 3,723,270
Within 1 year or Over 3
years Current Loans
Union Group 21,798,520
Within 1 year or Over 3
years Current Loans
State Development & Investment
Co., Ltd 3,000,000 Over 3 years Current Loans
Total 28,521,790
（5）Other payable Accounts include the following foreign currency balances.
Foreign Year-end balance Year-beginning balance
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 893,516 0.8724 779,503 914,342 0.8805 805,078
Total 779,503 805,078
21.Long-term borrowing
Type Year-end balance Year-beginning balance
Impawn borrowing 1,452,196 1,534,300
Total 1,452,196 1,534,300
.. The borrowing was the installment payment for the housing in Hong Kong bought by the subsidiary of
the company Xingye Company, the mortgage article was the house purchased. The installment
payment was HKD 2,366,000 , which paid in 240 month, As of December 31, 2009,Principal
amount of HKD 1,664,599 (RMB1,452,196)
22.Long-term payable
Items Time Year-end balance Year-beginning深圳中冠纺织印染股份有限公司
2010 年半年度报告
69/89
balance
Assess the value of
assets Non-time 9,132,664 9,217,564
Total 9,132,664 9,217,564
* 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.
23. Deferred income tax liabilities
（1）The confirmed Deferred income tax liabilities
Items Year-end balance Year-beginning balance
The income tax of taxable temporary
difference. 959,944 968,868
Total 959,944 968,868
（2）The temporary difference
Items Year-end balance Year-beginning balance
Item of the taxable temporary 5,817,842 5,871,927
Assets assessment appreciation 5,817,842 5,871,927
Total 16.5% 16.5%
Tax rate 959,944 968,868
Confirmation of the Deferred income
tax liabilities.
* 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. *
24.Other non-current liabilities
Items Year-beginning
balance
Increase in
current period
Decrease in
current period
Year-end
balance
ERP Information
construction 247,865 2,283 245,582
Digital printing 660,974 6,088 654,886深圳中冠纺织印染股份有限公司
2010 年半年度报告
70/89
technology
subsidies
Total 908,839 8,371 900,468
The above funds were the special subsidies received from Shenzhen Department of Finance in 2004
for the digital jet printing projects and for the construction of enterprise information. The deal must
be accepted by the Financial Bureau before accounting, so it was suspended. The reduction was due
to the change in exchange rates.
25. Share capital
Year-beginning balance Year-end balance
Name/Type
Amount Proportion%
Change
Amount Proportion%
.Shares w
conditional
subscription
State-owned legal
person shares - -
Other domestic
shares - -
Incl ： domestic
legal person
shares - -
Total Shares with
conditional
subscription - -
Shares with
unconditional
subscription
Common shares
in RMB 99,720,453 58.96% 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 169,142,356 100.00% 169,142,356 100.00%
Total of capital
shares 169,142,356 100.00% - 169,142,356 100.00%
26. Capital common reserve深圳中冠纺织印染股份有限公司
2010 年半年度报告
71/89
Items Year-beginning
balance
Increase in
current period
Decrease in
current period
Year-end
balance
Share capital
Premium
29,718,829 29,718,829
Other Capital common
reserve 9,578,275 6,238
9,572,037
Total 39,297,104 6,238 39,290,866
Current increment in capital surplus came from current fair value change of finance assets available for
sale.
27. Surplus common reserve
Items Year-beginning
balance
Increase in
current period
Decrease in
current period
Year-end
balance
Statutory Surplus
common reserve
26,704,791
26,704,791
Total 26,704,791 26,704,791
28. Retained profit
Items Amount Proportion（%）
Balance at the end of last period -102,767,941
Add：The beginning of the undistributed
profits adjustments
Including：Change of accounting policy
Correcting previous errors
Change of consolidated scope
Other adjustments
Balance at the beginning of current year -102,767,941
Add:Increase Net profit at the current period 5,412,704
Other adjustments
Less ： Withdrawing statutory surplus public
reserve
Withdrawing discretionary surplus reserve
Common stocks dividends payable
Stock dividend transferred in stock capital
Balance at the end of current year -97,355,237
29. Minority shareholders equity深圳中冠纺织印染股份有限公司
2010 年半年度报告
72/89
Name of Subsidiary Proportion%
Year-end amount
Year-beginning
balance
Nanhua Company* 30.56% -
Shenzhen East Asia
Company 49%
472，732 508,088
Total 472，732 508,088
* 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.
30. Business income, Business cost
（1）Business income,Business cost
Items In the report period
The same period of
last year
Key business income 1,037,461 9,494,848
Other business income 4,243,127 2,992,655
Total 5,280,588 12,487,503
Key business cost 304,606 9,714,283
Other business cost 2,055,818 1,900,035
Total 2,360,424 11,614,318
（2）classification
In the report period The same period of last year
Content Business
income
Business cost
Business
income
Business cost
Cloth bleaching, printing and
dyeing 1,037,461 304,606 9,494,848 9,714,283
House lease 4,243,127 2,055,818 2,992,655 1,900,035
Total 5,280,588 2,360,424 12,487,503 11,614,318
（3）In the report period, the key business, i.e., fabrics bleaching, printing and dyeing was
rectified in all aspects. It is uncertain whether the key business can be recovered in the near future.
（4）The operating income and operating cost in this year, Decreased RMB 7,206,915 and RMB
9,253,894 over the previous year, respectively 57.71% and 79.68%, mainly due to the Nanhuan
Company continues to halt the operation of business, so the business further declined.深圳中冠纺织印染股份有限公司
2010 年半年度报告
73/89
31. Management expenses
The management cost in this year was RMB 4,297,439, mainly due to the significant difference of
classification between last period and current period
32. Financial expenses
Items In the report period
The same period of
last year
Interest expenses 633,465
Less：Interest income 86,313 241,746
Add：Exchange rate loss -275,285 9,822
Add：Other expenses 3,836 11,557
Total -357,761 413,098
33.Changes income in fair value /loss
Items In the report period
The same period of
last year
Trading financial assets- -17,686 42,833
Total -17,686 42,833
The reason for the difference for the balance change of transactional financial assets was due to
the difference in translation.
34. Investment income
(1）Investment income generated by the sources listed
Items In the report period
The same period of
last year
Disposal trading financial assets to achieve
return investment 172,867 1852
Income from transfer of equity investment 6,606,835 2,327,135
Total 6,779,702 2,328,987
* The amount for the report year increased by big margin over that for the previous year because
the real estate project of an affiliated company, made profit.
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 6,779,702 2,328,987
Including：Hangzhou Bay Company 6,606,835 2,327,135深圳中冠纺织印染股份有限公司
2010 年半年度报告
74/89
35.Non-operating income
Items In the report period
The same period of
last year
Income disposition Non-current Assets 24,259
Other 2,339
Total 26,598
36.. Non-operating expense
Items In the report period
The same period of
last year
Loss disposition Non-current assets 7,645
Other 259 200
Total 259 7,845
37.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 5,412,704 -1,265,877
non-recurring
gain/loss
attributable to the
shareholders of the
Parent Company
2 -259 18,753
Attributable to the
shareholders of the
Parent Company, Net
profit after deducting
of non-recurring
gain/loss
3=1-2 5,412,963 -1,284,630
Total of shares at
year-beginning 4
169,142,356 169,142,356
Public reserve was
transferred as capital
5 - -深圳中冠纺织印染股份有限公司
2010 年半年度报告
75/89
Items
No
In the report
period
The same
period of last
year
and share increase
from dividend
distribution（Ⅰ）
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
reporting period
9 - -
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
0.03 -0.01
Diluted gains per
share（Ⅱ） 13=3÷11
0.03 -0.01
The interest of
ordinary shares
which was confirmed
as costs
14 - -深圳中冠纺织印染股份有限公司
2010 年半年度报告
76/89
Items
No
In the report
period
The same
period of last
year
Conversion costs 15 - -
Income tax rate 16 22% 20%
Warrants, shares with
equity right increase
17 - -
Diluted gains per
share（Ⅰ）
18=[1+(14-15)×(1-16)]÷(11+17) 0.03 -0.01
Diluted gains per
share（Ⅱ）
19=[3+(14-15)×(1-16)]÷(11+17) 0.03 -0.01
38.Other comprehensive income
Items Amount of
current
period
Amount of
previous period
1．Loss amount producted by sellable financial assets -6,238 131,304
Less：Income tax infection producted by sellablefinancial
assets
Net amount transferred into profit and loss at current priod
that reckoned into other comprehersive income at former
period
Subtotal -6,238 131,304
2．The enjoyed share in other comprehensive incomeofother
invested unit according to equity method
Less：Income tax infection producted from theenjoyed
shre in other comprehensive income of other invested unit
according to equity method
Net amount transferred into profit and loss at current period
that reckoned into other comprehersive income at former
priod
Subtotal
3．Benefit (Or loss) amount producted from cash flow
Less：Income tax infection produced from cash flowhedging
instruments
Net amount transferred into profit and loss at current
period that reckoned into other comprehensive income at深圳中冠纺织印染股份有限公司
2010 年半年度报告
77/89
Items Amount of
current
period
Amount of
previous period
former period
Transferred to the adjustment of initial confirmation
amount of items at hedged period
Subtotal
4．Translating difference in foreign currency financial reports -2,041,861 230,771
Less ：Net amount that transferred into profitandloss at
current period in disposed overseas business
Subtotal -2,041,861 230,771
5．Other 12,397
Less ： Taxation infection arising from reckoning other
comprehensive income
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former
period.
Subtotal 12,397
Total -2,035,702 362,075
39. Cash flow statement
（1）cash and cash equivalents
Items Amount of current
period
Amount of previous
period
Cash 55,323,423 63,658,478
Including :Stock of cash 132,304 139,348
The bank deposits which can be used at any
time
44,882,082 53,333,380
The other monetary funds which can be used
at any time
10,309,037 10,185,750
The funds deposited in the central bank
which be used
- -
The funds deposited in the same industry - -
The funds offered by the same industry - -
Cash equivalents - -
Including : Debt investments which will due
within three months
- -深圳中冠纺织印染股份有限公司
2010 年半年度报告
78/89
Items Amount of current
period
Amount of previous
period
Balance of cash and cash equivalents at the
period end
55,323,423 63,658,478
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 Amount of
current
period
Amount of
previous period
1. Adjusting net profit to net cash flow in operating
activities:
Net profit 5,364,951 -1,358,103
Add： Provision for impairment of assets -
Fixed assets depreciation 1,840,723 1,417,435
Amortization of intangible assets 26,866 -
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 17,686 42,825
Financial expenses -357,761 405,962
Investment losses -6,779,702 -2,326,660
Decrease of deferred income tax asset -
Increase of deferred income tax liability -68,400 -427
Decrease in inventory -44,253 728,063
Decrease in operating receivable 2,900,080 2,215,595
Increase in operating payables -3,272,060 1,300,541
Other -
Net cash flows from operating activities -371,870 2,393,354
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 - -
Fixed assets under financial lease - -
3.Net increase in cash and cash equivalents -深圳中冠纺织印染股份有限公司
2010 年半年度报告
79/89
Items Amount of
current
period
Amount of
previous period
Cash at the end of the period 55,323,423 63,658,478
Less：Cash at the beginning of the period 56,105,626 61,368,428
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 -782,203 2,290,050
IX. Related party relationship and related transactions
(I) Related party relationship
(1)The related parties with controlling relationship
Parent
company
Type
Registered
address
Legal
represe
Nature
Relations
hip
Organi
zation
Code
Union
Holding
Issue
company
11/F,Union
Bulding,
Dong
Bingge
Production
and sale
Controll
ing
192471500
Union
Group
Limited
liabilit
Union
Bulding,Shenna
Dong
Bingge
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* 5,821,089 5,821,089 3.44% 3.44% 3.44% 3.44%
Union
Holdings 43,141,032 43,141,032 25.51% 25.51% 25.51% 25.51%深圳中冠纺织印染股份有限公司
2010 年半年度报告
80/89
* Union Group holds 31.32% of equity capital of Union Holdings, it controls Union Holdings, and Union
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 VII
2.Joint venture and affiliated company.
Joint venture and affiliated company ,see Notes VIII,9
(4) Other Related party
Name Type
Related transactions
Shenye Union（HK）Co., Ltd.
The related parties controlled the
same Actual controller
Current balance
Shenzhen Union Property Group
Co., Ltd.
The related parties controlled the
same Actual controller
Current balance
(5) Balance current related parties
Related parties Year-end balance Year-beginning balance
Account receivable
Shenye Union（HK）Co., Ltd. 322,136 325,127
Other payable
Union Group 21,798,520 21,566,542
Shenzhen Union Property Group Co.,
Ltd.
3,723,270 3,671,008
X.Subsequent events
As of June 30, 2010，The company has no forrned form other Importance events.
XI.Commitment events
1. The external investment contracts and the related financial expenditures which have signed or not yet completely
fulfilled.
As of June 30, 2010,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
Unpaid
investment
amount
Expected
investmen
t period
Remarks深圳中冠纺织印染股份有限公司
2010 年半年度报告
81/89
amount
Invest Nanjing East
Asia Textile Co., Ltd
with machinery and
equipments
30 million - 30million
Unsurene
ss
Can not be
relocated because
the fields
uncompleted
1. The big contract which has been signed or is ready to be carried out
As of June 30, 2010 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
The location
of production
equipments as
a whole
1,710,000 855,000 855,000 Unsureness
Can not be
relocated because
the fields
uncompleted
4.Except for the events described above, By June 30, 2010,the Group has no other significant commitment events.
XII . Events after balance sheet date
The Group had no other significant matters after the balance sheet date.
XIII. Other Significant Events
1.Lease
(1) Business in leasing assets
Type
Year-end balance Year-beginning
balance
Cost 103,997,141 104,963,930
House, Building 103,997,141 104,963,930
Accumulated amortisation 61,640,197 60,518,745
House, Building 61,640,197 60,518,745
Impairment provision - -
House, Building - -
The book value 42,356,944 44,445,185
House, Building 42,356,944 44,445,185
XIV.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.深圳中冠纺织印染股份有限公司
2010 年半年度报告
82/89
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.
Because of the long delay time of this project, original investment environment had changed,
our company is actively dicuss with our partner, in order to establish the project as soon
as possible.
XV. Parent company Notes of financial statements
1. Accounts receivable
(1) Risk classification of Account receivable
Year-end balance Year-beginning balance
Items Book Balance Book Balance
Amount Proportion%
Provision for
bad debts
Amount Proportion%
Provision for
bad debts
Receivables
with large
individual
amount.
3,961,302 31.73 3,961,302 3,998,082 30.54 3,998,082
Receivables
without large
individual
amount, but
with great
risk after
combined
according to
risk
characteristics
3,728,939 29.87 3,728,939 4,252,089 32.49 3,763,561
Other minor
receivables
4,794,590 38.40 4,794,590 4,839,106 36.97 4,839,106
Total 12,484,831 100.00 12,484,831 13,089,277 100.00 12,600,749
1）The accounts receivable at year end with significant single amount or the insignificant amount
which were tested separately.
Name
Book
balance
Amount of
bad debts
Proportion Cause深圳中冠纺织印染股份有限公司
2010 年半年度报告
83/89
Name
Book
balance
Amount of
bad debts
Proportion Cause
Shenzhong Enterprise
Co.,Ltd.
1,692,227 1,692,227 100%
Insolvent
company, to be
written off
Carnival Index
International Ltd
1,182,157 1,182,157 100%
TAI YANG ENTERPRISECO.,
LTD.
1,086,918 1,086,918 100%
Other
4,794,590 4,794,590
100%
The company had
stopped
production, and
no business
contact for a
long time.
Total 8,755,892 8,755,892 100.00%
2）If the individual amount is not important but accounts receivable with big amount of credit
risk identified
Year-end balance Year-beginning balance
Items
Amount Proportion%
Provision
for bad
debts Amount Proportion%
Provision
for bad
debts
Within 1
year 315,737 7.43 9,472
1-2 years 9,385 0.25 9,385 202,515 4.76 20,252
2-3 years 20,066 0.54 20,066 - - -
Over 3
years 3,699,488 99.21 3,699,488 3,733,837 87.81 3,733,837
Total 3,728,939 100.00 3,728,939 4,252,089 100.00 3,763,561
(2) Account receivable 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) The front 5 units’ information of account receivable
Unit name Relation with
the company
Amount Fixed year
Percentage of account
receivable
Shenzhong Enterprise
Co.,Ltd. Subsidiary 1,692,227
Over 3
years 12.93%
Carnival Index
International Ltd
Non-Related
parties 1,182,157
Over 3
years 9.03%
Fly Dragon International
Non-Related
parties 617,186
Over 3
years 4.72%深圳中冠纺织印染股份有限公司
2010 年半年度报告
84/89
Unit name Relation with
the company
Amount Fixed year
Percentage of account
receivable
Grateful Textiles Co.,Ltd
Non-Related
parties 609,787
Over 3
years 4.66%
TAI YANG ENTERPRISECO., LTD.
Non-Related
parties 1,086,918
Over 3
years 8.30%
Total 5,188,275
(4)Accounts receivable include the following foreign currency balances
Name Relation with the company Amount Proportion(%)
Shenzhen East Asia Victor
Onward Textile Printing & dyeing Subsidiary 63,395 0.48%
Shengzhong Enterprise Co.,
Ltd. Subsidiary 1,692,227 12.93%
Shenye Union（HK）Co., Ltd.
The related parties
controlled the same
Actual controller 322,136 2.46%
Total 2,077,759 15.87%
(5)Account receivable include the following foreign currency balances
Year-end ba Foreign lance Year-beginning balance
currency
Name
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
HKD 12,929,509 0.8724 11,279,704 12,929,509 0.8805 11,384,433
Total 11,279,704 11,384,433
2. Other accounts receivable
（1）Risk classification of accounts receivable
Year-end balance Year-beginning balance
Book Balance
Provision for
bad debts
Book Balance
Provision for
bad debts
Items
Amount Proportion% Amount Amount Proportion% Amount
Receivables
with large
individual
78,635,029 98.65 3,351,096 83,970,412 98.72 3,382,210深圳中冠纺织印染股份有限公司
2010 年半年度报告
85/89
amount.
Receivables
without large
individual
amount, but
with great risk
after combined
according to
risk
characteristics
1,061,365 1.33 253,727 1,071,219 1.26 256,083
Other minor
receivables
13,251 0.02 13,374 0.02
Total 79,709,644 100.00 3,604,823 85,055,005 100.00 3,638,293
(2) The front 5 units’ information of Other account receivable
Name
Relation with
the company
Amount
Account
Age
Proportion(%)
Content
HongKong Victor
Onward
Subsidiary 62,711,310
1-2
years
78.67%
Business
Shenzhen
Nanhua Printing
& dyeing Company
Subsidiary 13,000,000
Over 3
years
16.31%
Business
Shenzhen
East Asia
Victor Onward
Textile Printing &
dyeing Company
Subsidiary 538,441
Over 3
years
0.68%
Business
Nanjing East
Asia
Non-Related
parties 1,315,041
Over 3
years
1.65%
Business
CCB.Guangdong
Shunde
Branch
Non-Related
parties
1,070,090
Over 3
years
1.34%
Business
Total 78,634,881 98.65%
(3) Ending balance exclude accounts receivable from related parties.
(4)Other receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
Currency
of Name
Original
currency
Exchange
rate
RMB
equivalent Original currency
Exchange
rate RMB equivalent深圳中冠纺织印染股份有限公司
2010 年半年度报告
86/89
HKD 73,570,461 0.8724 64,182,870 75,915,125 0.8805 66,843,267
Total 64,182,870 66,843,267
3.Long-term equity investment
（1）Long-term equity investment
Items Year-end balance Year-beginning balance
The cost of long-term equity
investment accounting 40,936,638 41,317,197
Total of long-term equity
investment 40,936,638 41,317,197
Less ： Long-term equity
investments for impairment -
Net value long-term equity
investment 40,936,638 41,317,197
(2) The cost method long-term equity investment
Name
Proportion
%
Vote
proportion
%
Initial
amount
Year-beginning
balance
change
Exchange
rate
change
Year-end
balance
Cost method:
HongKong
Victor
Onward
100 100 2,411,282 23,040,722 -212,428 22,828,294
Nanhua
Printing &
dyeing
54.82 54.82 23,082,831 16,915,702 -155,613 16,760,089
Shenzhen
East Asia
51 51 1,470,000 1,360,773 -12,518 1,348,255
Total 26,964,113 41,317,197 -380,559 40,936,638
4. Business income, Business cost
（1）Business income,Business cost
Items Amount of current
period
Amount of previous
period
Key business income 43,481 4,227,990
Other business income 484,108 536,465深圳中冠纺织印染股份有限公司
2010 年半年度报告
87/89
Total 527,589 4,764,455
Key business cost -531,197 3,882,058
Other business cost 239,102 228,522
Total -292,095 4,110,580
(2)Classification
In the report period The same period of last year
Name Business
income
Business cost
Business
income
Business cost
Cloth bleaching, printing and
dyeing
43,481 -531,197 4,227,990 3,882,058
House lease 484,108 239,102 536,465 228,522
Total 527,589 -292,095 4,764,455 4,110,580
(3)The reason of the negative current period Key business cost is because the sales stop
checking returned products.
5. Investment income
Items In the report period
The same period of
last year
Disposal Long-g-term equity investment to
achieve return investment
Disposal trading financial assets to
achieve return investment
106,843
Total 106,843
XV. Supplement information
1.Statement of Non-current gain and loss
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深圳中冠纺织印染股份有限公司
2010 年半年度报告
88/89
Items
In the report
period
The same
period of last
year
liabilities and saleable financial assets
Single impairment test for impairment of receivables transferred back to
preparation
Net amount of non-operating income and expense except the aforesaid items 259 2,139
Other non-recurring Gains/loss items
Subtotal 259 18,753
Amount of influence of minority interests
Total of non-recurring Gains/loss items 259 18,753
Including：attributabletocommon shareholders of the parent 259 18,753
2.Return on net assets and earnings per share
Earnings per share（RMB）
Profit of the report period
Return on net assets .
Weighted（%） Basic earnings per
share
Diluted gains per
share
Net profit attributable to the
owners of Company. 3.69 0.03 0.03
Net profit attributable to the
owners of Company after
deducting of non-recurring
gain/loss.
3.69 0.03 0.03
XVI. 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 19,2010.
Chapter VII. List of Documents Available for Inspection
I. The semi-annual report 2010 of the Company;
II. The semi-annual financial report bearing the signatures and seals of the legal representative,
person 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.深圳中冠纺织印染股份有限公司
2010 年半年度报告
89/89
The Board of Directors of Shenzhen Victor Onward Textile Industrial Co., Ltd
August 19, 2010
