深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Shenzhen Victor Onward Textile Industrial Co., Ltd.
The Semiannual Report 2013
August 2013
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, 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.
All the directors attended the board meeting for reviewing the Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Hu Yongfeng, The Company leader, Mr. Zhang Jinliang, Chief financial officer and the Mr..Ren Changzheng,
the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Table of Contents
2013 Semi-Annual Report
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Information about Directors, Supervisors and Senior Executives
VIII. Financial Report
IX. Documents available for inspection
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Definition
Refers
Terms to be defined Definition
to
Refers
Company/The Company/ Shenzhen Victor Onward Textile Industrial Co., Ltd.
to
Refers
Company Law Company Law of the People’s Republic of China
to
Refers
Securities Law Securities Law of the People’s Republic of China
to
Refers
“CSRC” China Securities Regulatory Commission
to
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
II. Basic Information of the Company
I. Company Information
* ST Shenzhen Victor Onward A, * ST
Stock abbreviation Stock code： 000018、200018
Shenzhen Victor Onward B
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳中冠纺织印染股份有限公司
Chinese Abbreviation (If any) 中冠
English name (If any) Shenzhen Victor Onward Textile Industrial Co., Ltd
English abbreviation (If any) VICTOR ONWARD
Legal Representative Hu Yongfeng
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Zhang Jinliang Wu Xia
Room 1308, Hualiang Building, No.2008 Room 1308, Hualiang Building, No.2008
Contact address
Shennan Zhong Road, Shenzhen Shennan Zhong Road, Shenzhen
Tel （755）83668425 （755）83667895
Fax （755）83668427 （755）83668427
E-mail zhangjl@udcgroup.com wux@udcgroup.com
III. Others
1. Way to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the reporting period?
√ Applicable □ Not applicable
Registered address 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Postal code of the Registered Address 518119
Office Address 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Postal code of the office address 518119
Internet Web Site http://www.udcgroup.com
E-mail szvo@chinaszvo.com
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2012 Annual Report.
3.Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable √Not applicable
The Registration date and place of the Company, its business license No., Taxation registration No. and
organizational code did notchange during the reporting period. The said information can be found in the 2012
annual report.
4.Other relevant information
Did any change occur to other relevant information during the reporting period?
√ Applicable □ Not applicable
The Company no longer renewed the engagement of Shine Wing Certified Public Accountants (special ordinary
partnership) as the auditing body for the audit and internal control of the Company for 2013. According to the
provisions of the Company's Work System of Choosing and Engaging Certified Public Accountants, the Company
engaged Dahua Certified Public Accountants (special ordinary partnership) as the auditing body for audit and
internal control for 2013. The annual auditing fee is RMB 0.45 million (including traveling expenses). Refer to No.
2013-0640 announcement of the Company published at www.cninfo.com.cn on June 27, 2013 for details.
（2013-0640）
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
III. Summary of Accounting Highlights and Business Highlights
I. Major accounting data and /Financial indicators
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 4,990,626.00 5,019,787.00 -0.58%
Net profit attributable to the shareholders
-4,123,606.00 -4,187,136.00 -1.52%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -1,708,492.00 -1,245,706.00 37.15%
listed company（RMB）
Cash flow generated by business operation,
1,949,440.00 165,989.00 1,074.44%
net（RMB）
Basic earning per share(RMB/Share) -0.02 -0.02 0%
Diluted gains per share(RMB/Share) -0.02 -0.02 0%
Net asset earning ratio（%） -3.53% -3.58% 0.05%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets（RMB） 164,879,572.00 172,002,557.00 -4.14%
Shareholders’ equity attributable to
114,119,534.00 118,852,391.00 -3.98%
shareholders of the listed company（RMB）
II.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
Unit:RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS -4,123,606.00 -4,187,136.00 114,119,534.00 118,852,391.00
Items and amount adjusted according to CAS and IAS
Switch back the part of Hong 267,910.00 55,329.00 -4,729,270.00 -5,298,751.00
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Kong house property
assessment in accordance with
IAS
Pursuant to overseas
-3,855,696.00 -4,131,807.00 109,390,264.00 113,553,640.00
accounting standards
2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the
Accounting standards Outside Mainland China and the Chinese Accounting Standards.
Unit:RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS -4,123,606.00 -4,187,136.00 114,119,534.00 118,852,391.00
Items and amount adjusted according to CAS and IAS
Switch back the part of Hong
Kong house property
267,910.00 55,329.00 -4,729,270.00 -5,298,751.00
assessment in accordance with
IAS
Pursuant to overseas
-3,855,696.00 -4,131,807.00 109,390,264.00 113,553,640.00
accounting standards
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
The influence of appreciation through appraisal of workshop and 2 parking spaces in Hong Kong in 1992.
III.Items and amount of deducted non-current gains and losses
Unit:RMB
Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-15,114.00
for which assets impairment provision is made)
Other non-operating income and expenditure beside for the above
-2,400,000.00
items
Total -2,415,114.00 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
IV. Report of the Board of Directors
I. General
1. Business highlights
In the report period, the printing and dyeing mill of the Company in Shenzhen continued production suspense
while the parent company and five subsidiaries continued the suspension of printing and dyeing business due to
the production suspense of the printing and dyeing mill. The parent company, Nanhua Company and Hong Kong
Company maintained daily operation through property lease. The other three subsidiaries had suspended business.
The Company planned to invest in the joint venture project of Nanjing East Asia Textile Printing and Dyeing Co.,
Ltd. with partial machinery and equipment. Due to change of foundation of joint venture and prospect of the
industry, the capital increase was not completed. In the report year, the income from house rent was the main part
of net inflow of cash and the source of income from main operation.
2. The risks that the Company is facing and countermeasures
Production suspense brought significant influence on the production and operating activities and continuous
development of the Company. 2The audited net profits of the Company for two consecutive fiscal years (i.e., 2011
and 2012) were both negative. According to relevant regulations including Stock Listing Rules of Shenzhen Stock
Exchange, Shenzhen Stock Exchange enforced special treatment ("delisting risk caution") of the stocks of the
Company from April 24, 2013.
According to Stock Listing Rules of Shenzhen Stock Exchange, the listing of the stocks of the Company will
be suspended from the day of announcement of 2013 annual report if its audited net profit for 2013 is still
negative. In case of failure to reverse loss according to the annual report for the latest period disclosed within
statutory time limit, the stocks of the Company will face the risk of termination of listing.
In order to try to have the caution of delisting risk revoked, the Company will make all efforts to enhance
operating efficiency and increase return through various measures and take "reversing loss into profit" as the
priority target of production and operation for the year in 2013.
II. Analysis on principal Business
1.General
In the report period, the textile, printing and dyeing business of the head office and controlled subsidiaries of the
Company did not recover and continued to be suspended for rectification. The Company leased its idle properties
and earned rental income of RMB 4.99 million.
YoY Change of major financial data:
Unit：RMB
Reporting period Same period of last year YoY+/-(%) Main reasons for change
Operating revenues 4,990,626.00 5,019,787.00 -0.58%
Operating cost 2,073,313.00 2,199,834.00 -5.75%
Administrative expenses 4,050,058.00 4,358,499.00 -7.08%
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Influence of exchange
Financial expenses 273,998.00 -47,525.00 -676.53%
rate
Acceptance of banker's
Net cash flows from
1,949,440.00 165,989.00 1,074.44% acceptance bills of prior
operating activities
periods
Receipt of the proceeds
Net cash flows from of disposal of machinery
5,024,937.00 -31,431.00 -16,087.2%
investing activities and equipment in
advance
Net cash flows from Payment of loan
-10,000,000.00
financing activities principal to Union Group
Net increase in cash and
-3,458,795.00 267,112.00 -1,394.89%
cash equivalents
Major changes to the profit structure or sources of the Company during the reporting period.
□Applicable √ Not applicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc:
□Applicable √ Not applicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period.
As the plan of investing in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery and
equipment was not fulfilled, part of the Company's assets have been in idle status for long time since production
suspense for rectification. At present, the investment project (Nanjing East Asia Textile Printing and Dyeing Co.,
Ltd.) has entered litigation procedure. There will be no possibility of investment completion. To invigorate assets
and recover funds, the Company planned to dispose of fixed assets (machinery and equipment) and parts. In the
report period, it collected proceeds of RMB 5.05 million from such disposal.
III.Breakdown of main business
Increase/decrease Increase Increase/decrease
Operating Gross profit of operating /decrease of of gross profit
Operating costs
revenues rate(%) revenues over last operating costs rate over last year
year（%） over last year（%） （%）
Classification of Industry
Leasing Industry 4,990,626.00 2,073,313.00 58.46% -0.58% -5.75% 1.71%
Classification of products
Lease 4,990,626.00 2,073,313.00 58.46% -0.58% -5.75% 1.71%
Classification of Area
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
China 4,119,034.00 1,498,006.00 63.63% -0.96% -6.44% 3.41%
Hong Kong 871,592.00 575,307.00 33.99% 2.35% -3.31% 1.03%
IV. Analysis on investment Status
1. External Equity investment
（1）External investment
External investment
Investment amount (January-June Investment Amount (January-June
Change rate（%）
2013)(RMB) 2012)(RMB)
0.00 0.00 0%
Particulars of investees
Name Principal business Proportion in the investees’ equity（%）
Zhejiang Union Hangzhou Bay
Real estate 25%
Chuangye Co., Ltd.
（2）Holding of the equity in financial enterprises
2. Analysis to main subsidiaries and shareholding companies
Particulars about main subsidiaries and shareholding companies
Unit：RMB
Leading Total Operating
Company Company Sectors Registered Net assets Tumover Net Profit
products assets(RMB profit
Name type engaged in capital (RMB) (RMB) (RMB)
and services ) (RMB)
Hong Kong
Victor Textile Textile 2,400,002 112,829,365 43,308,284.
Subsidiary 875,656.00 -129,466.00 -127,537.00
Onward industry trade （HKD） .00 00
Co.Ltd
Textile
Nanhua Textile 85,494,700 28,239,070. -18,089,476 3,206,500.0
Subsidiary Printing and -127,217.00 -139,333.00
Company industry （HKD） 00 .00 0
dyeing
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
V. Prediction of business performance for Jan-Sept 2013.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
√ Applicable □Not applicable
Forenotice of earning :Losses
Type of data filet for the prediction
Year beginning to end of next Same period of
Increase or decrease%
report period the previous year
Estimated amount of
accumulative net -200 -- 0 -615 -- -100% -- -67.48%
profit(RMB’0000)
Basic earnings per shares
-0.01 -- 0 -0.04 -- -100% -- -75%
(Yuan/share)
Due to loss of real estate projects of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounted fo
Notes to forenotice of
r on equity basis, the accumulative net profit for the period from January 2012 to September 2013 is
earnings
estimated to be loss and about RMB-2 million to RMB-0.
VI. Explanation from the Board for “ Qualified Opinion” of last year’s
1．Basic information
Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of emphasized
matters for the Company's financial statements for 2012 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.,
but its sustainable operation ability is still uncertain.
(II) Basic opinions of certified public accountants on such matter:
Shine Wing Certified Public Accountants accepted entrustment, completed the audit of the financial
statements of the Company for 2012 and issued unqualified auditor's report with paragraph of emphasized matters
for the Company's financial statements for 2012. In accordance with No. 14 Rule for Preparation and Report of
Information Disclosure by Companies Publicly Issuing Securities - Non-standard Unqualified Audit Opinions and
Treatment of Matters Involved Therein, relevant notes are as follows:
As noticed by Shine Wing Certified Public Accountants during audit, Since March 2007, Shenzhen Victor
Onward Textile Industrial Co., Ltd. stopped production and dismissed most of workers. The company currently
only had house leasing business.
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, The investment plan has not been implemented, the proposed investment has
been idle equipment stored in the Victor Onward Company. On June 4, 2012, The Victor Onward Company has
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
instituted court action at Jiangsu Province Higher People's Court, and asked to terminate the contracts and
agreement on investment on Nanjing project. We believe that the sustainable operation ability of Shenzhen Victor
Onward Textile Industrial Co., Ltd. is still uncertain, so I emphasized the situation in the audit reports and issued
unqualified auditor's report with paragraph of emphasized matters. The matters involved in highlighted statement
did not apparently violate Accounting Standards for Business Enterprises and regulations on relevant information
disclosure standardization.
(III) The opinions of the board of directors, supervisory committee and management of the
Company on this matter:
The board of directors, Supervisory Committee and managers believed that the printing and dyeing plant of
the company had stopped operation or maintained daily operation by house leasing. .It plans to invest in Nanjing
East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery and equipment, Due to the reason on the
side of the other party of joint venture and change of industry prospect. Partners disagree with our views in the
replenishment of the things, thus cooperation is difficult to continue. Although we sent our staff to Nanjing many
times for negotiation, but failed to reach a consensus. Therefore, we decided the proceedings in the People's
Court.
(IV) Extent of influence of this matter on the Company:
This event greatly impacted the production & operation activities and sustainable development of company, it
made company had the situation of implementing other special treatment which was stipulated in Shenzhen Stock
Exchange Listing Rules , the stock of our company had been implemented for other special treatment. As the
audited net profits of the Company for 2011 and 2012 were negative, Shenzhen Stock Exchange will give special
treatment to the stocks of the Company for the caution of delisting risk according to relevant regulations including
Stock Listing Rules of Shenzhen Stock Exchange. The stocks of the Company will be subject to special treatment
for caution of delisting risk after the disclosure of 2012 annual report. The Company stocks will be suspended
from April 24, 2013, The stocks of the Company will implement special treatment for delisting risk warning after
the Company was restored for trading from April 24,2013.
According to Stock Listing Rules of Shenzhen Stock Exchange, the listing of the stocks of the Company will
be suspended from the day of announcement of 2013 annual report if its audited net profit for 2013 is still
negative. In case of failure to reverse loss according to the annual report for the latest period disclosed within
statutory time limit, the stocks of the Company will face the risk of termination of listing.
(V) The possibility of eliminating this matter and its influence:
In order to try to have the caution of delisting risk revoked, the Company will make all efforts to enhance
operating efficiency and increase return through various measures and take "reversing loss into profit" as the
priority target of production and operation for the year in 2013.
(VI) The concrete measures of eliminating this matter and its influence
The Company Holding a positive and prudent attitude, the company has been looking for a new business direction
and an effective way to fight to reverse loss into profit in 2013.
VII. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
□ Applicable √ Not Applicable
The Company has no profit distribution and share and shares converted from capital reserve either, which was deliberated and
approved in annual shareholders’ general meeting of 2012.
VIII. Profit distribution for the report period
Particulars about the profit distribution and capitalizing reserves plan for the report period
IX. Statement of such activities as reception, research, communication, interview in the reporting
period
Discussion topics and
Reception time Reception place Way of reception Types of visitors Visitors received
provision of materials
Enquiry about the
BOD office of the Company’s whether the
April 24, 2013 By phone Individual Investor
Company Company has any plan for
reorganization
BOD office of the Enquiry about the company
May 6, 2013 By phone Individual Investor
Company situation
Inquire of the Company
BOD office of the about the time of holding
May 30, 2013 By phone Individual Investor
Company shareholders' general
meeting
Inquire about the reason for
BOD office of the the rise in stock price of the
June 4, 2013 By phone Individual Investor
Company Company during sharp
decline of stock market.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
V. Important Events
1.Governance of the Company
In the report period, The company has strictly abided by the “Corporate Law”, “Securities Law”,
“Governance Rules of Listed Companies”, “Articles of Association” and the provisions and requirements of The
China Securities Regulatory Commission (CSRC) and The Shenzhen Stock Exchange (SZSE) to continuously
improve the corporate governance structure, establish the modern enterprise system, standardize the company
operations and seriously and well perform all the works of corporate governance. the company has set up the work
plan and program on the implementation of internal control norms in order to further strengthen the construction
work of the company’s internal control norms system according to the relevant specifications of “Foundational
Norms on Internal Control of Enterprise” and “Supporting Instructions to Internal Control of Enterprise”.
Currently, the company is carrying out the relevant specific works as per all the stage of work plans of the internal
control construction. There isn’t difference between the management prac tise and the regulations of the Company
Law and CSRC.
In the report period, the Company further increased information transparency and properly carried out
publicity work for protection of investors. It timely answered the questions of investors and communicated with
medium and small investors by making use of telephone, email, especially the platform for communication with
investors set up by Shenzhen Stock Exchange to let them know itself better and improve its information
transparency.
In the report period, relevant personnel of the Company attended the working meeting for prevention and
control of insider dealings of listed companies in Shenzhen organized by Shenzhen Securities Regulatory Bureau.
After the meeting, all directors, supervisors and senior executives and other working personnel who have access to
insider information were trained so that the trainees fully understood the importance of cracking down on insider
dealings. After self inspection, relevant personnel were not found to carry out insider dealings or to suggest others
to conduct transactions by making use of insider information. No insider information was divulged. The Company
did not conduct administration in a non-standardized way such as providing non-open information to the
controlling shareholder or the actual controller. The Company was not investigated and prosecuted or ordered to
make rectification by regulatory authority due to the implementation of insider registration system or being
suspected of insider dealing.
II. Major lawsuits and Arbitration affairs
√ Applicable□ Not applicable
Basic information Amount Whether comes Progress of Trial results and Judgment Disclosure Index of
of involved to accrual lawsuits(arb influence enforcement date disclosure
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
lawsuits(Arbitratio (RMB’0000) liability or not itration) situation
n)
On June 4, 2012,
The company has
instituted court
action against
below three
companies at
Jiangsu Province
Higher People's
Court, and asked
to terminate the
contracts and
agreements signed
with Nanjing East
Asia Textile
Printing & Dyeing
Co., Ltd., Nanjing
East Asia Announceme
Investment & nt No.
Development 2012-0614)
Group Co., Ltd. Securities
he case
and Hong Kong Times , Hong
4,792 No hasn’t yet June 16, 2012
Yaojunxing Co., Kong
been tried
Ltd., who shall pay Commercial
RMB47,922,902.9 Daily and
2 to the company www.cninfo.
for the pecuniary com.cn
loss of implicative
compensation and
undertake the costs
of litigation. The
company has
received the
Su-Shang-Wai-Ch
u-Zi No.0002
(2012) of “Notice
on Indictment
Acceptance and
Collegial Panel
Announcement”
issued by Jiangsu
Province Higher
People's Court on
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
June 14, 2012.
III. Query form media
□ Applicable√ Not applicable
In the reporting year, the Company had no query from media
IV. Assets Transactions
1. Sales of Assets
Net
profit
contribu
ted to Proporti Connect
the on of ivity
compan the net Relation Has all
Has all
y from profit Is it a s with the
Gain/los the
Other Transact the contribu Pricing related the ownersh
s arising credit
party of ion beginni ted by principl transacti other ip of the Disclos
Assets Date of from /debt Disclos
the price ng of the asset e for the on Is it a party assets ure
sold sale sales involve ure date
transacti (RMB’0 the for the asset related (applica involve index
(RMB’0 d been
on 000） reportin compan sold transacti ble to d been
000) transferr
g year y in the on the transferr
ed
to the total related ed
date of profit transacti
sales of (%) on)
the asset
(RMB’0
000)
V. Material related transactions
1. Other material related transactions
The account receivable of related parties of Listed Company
Unit：RMB
Year-end balance Year-beginning balance
Projects Related parties Book balance Provision for Book balance Provision for
devaluation devaluation
Account receivable Shenye Union（HK） 299,428.00 299,428.00 299,428.00 299,428.00
Co., Ltd.
The account Payablee of related parties of Listed Company
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Unit ：RMB
Projects Related parties Year-end balance Year-beginning balance
15,104,652.00 24,748,412.00
Other payable Shenzhen Union Real estate 700,734.00 700,734.00
Group Co., Ltd.
Relevant inquiry with the internet website for disclosing provisional report on material related transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
VI. Important contracts and implementation
VII. The commitments of the Company and its shareholders holding over 5% of the Company’s total shares in the
report year of extending to the report year from previous year.
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
Committed
when the
restricted-for-sal
e shares from
the shares
restructuring
were listed for
circulation in the
market: i. if they
Union Holdings
plan to sell the
Co.,
shares through
Ltd/Shenzhen
the securities
Textile Under
Commitment on share reform exchange 2006.3.24 In effect
(Holdings) Co., Fulfillment
system in the
Ltd./Union
future, and the
Development
decrease of the
Group Co., Ltd.
shares they hold
reaches 5%
within 6 months
after the first
decrease, they
will disclose an
announcement
indicating the
sale through the
19
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
company within
two trading days
before the first
decrease; ii.
They shall
strictly observe
the “Guidelines
on Transfer of
Restricted-for-sa
le Original
Shares of Listed
Companies” and
the provisions of
the relevant
business
principles of
Shenzhen Stock
Exchange.
Commitment in the acquisition report or Not
the report on equity changes applicable
Commitment made upon the assets Not
replacement applicable
Not
Commitments made upon issuance
applicable
Other commitments made to minority Not
shareholders applicable
Executed timely or not? Yes
VIII. Engagement/Disengagement of CPAs
Whether the intrim Report was audited or not
□ Yes √ No
IX. Notes to other significant Events
Announcement on lawsuits.of Shenzhen Victor Onward Textile Industrial Co., Ltd. Announcement
No.:2012-0614，Announcement Date: June 16, 2012.(www.cninfo.com.cn)，Investors are advised to pay attention
to investment risks.http://www.cninfo.com.cn/finalpage/2012-06-16/61144742.PDF
20
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
I. Share with conditional
0 0% 0 0 0 0 0 0 0%
subscription
1.State-owned shares 0 0% 0 0 0 0 0 0 0%
2.Staee-owned legal person
0 0% 0 0 0 0 0 0 0%
shares
3.Other domestic shares 0 0% 0 0 0 0 0 0 0%
Of which：Domestic legal
0 0% 0 0 0 0 0 0 0%
person shares
Domestic natural person
0 0% 0 0 0 0 0 0 0%
shares
4.Share held by foreign
0 0% 0 0 0 0 0 0 0%
investors
Of which：Foreign legal
0 0% 0 0 0 0 0 0 0%
person shares
Foreign natural person
0 0% 0 0 0 0 0 0 0%
shares
5. .Executive shares 0 0% 0 0 0 0 0 0 0%
II. Shares with 169,142,3 169,142,3
100% 0 0 0 0 0 100%
unconditional subscription 56 56
1.Common shares in 99,720,45 99,720,45
58.96% 0 0 0 0 0 58.96%
RMB 3 3
21
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
2.Foreign shares in 69,421,90 69,421,90
41.04% 0 0 0 0 0 41.04%
domestic market 3 3
3.Foregin shares in
0 0% 0 0 0 0 0 0 0%
overseas market
4.Other 0 0% 0 0 0 0 0 0 0%
169,142,3 169,142,3
III. Total of capital shares 100% 0 0 0 0 0 100%
56 56
Reasons for share changed
□Applicable√Not applicable
Approval of Change of Shares
□Applicable√Not applicable
Ownership transfer of share changes
□Applicable√Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□Applicable√Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□Applicable√Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□Applicable√Not applicable
II. Number of shares and shares held
Unit：Shares
Total shareholder at period-end 9,365
Shareholders with over 5% shares held
Amount Number os share
Number of Changes
Proportion of of Amount of pledged/frozen
Nuture of shares held in
Shareholders shares held restricte un-restricted
shareholder at period reportin State of
（%） d shares shares held Amount
-end g period share
held
Domestic Non-
Union Holdings
State-owned legal 25.51% 43,141,032 0 0 43,141,032
Co., Ltd.
person
22
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
STYLE-SUCCES Foreign legal
14.46% 24,466,029 0 0 24,466,029
S LIMITED person
Shenzhen Textile
State-owned -2,275,1
(Group)Holdings 4.11% 6,958,246 0 6,958,246
Legal person 48
Ltd
Rich Crown
Foreign legal
Investment Co., 3.62% 6,114,556 0 0 6,114,556
person
Ltd.
Union Domestic Non-
-140,00
Development State-owned legal 3.36% 5,681,089 0 5,681,089
0
Group Co., Ltd. person
Liuzhou Jiali Domestic Non-
Real estate legal person
2.49% 4,220,000 0 0 4,220,000
Development State-owned legal
Co., ltd. person
Domestic Natural
Zeng Ying 1.21% 2,039,600 0 0 2,039,600
person
Liuzhou
Domestic Non-
Ruiheng
State-owned legal 1.01% 1,703,000 -7,000 0 1,703,000
Mechatronics
person
Co., Ltd.
Domestic Natural +1,005,
Qin Yuyan 0.59% 1,005,376 0 1,005,376
person 376
Shing Ying Foreign Natural -625,00
0.54% 909,962 0 909,962
Chieh person 0
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if
applicable)(See Notes3)
Explanation on associated The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
relationship among the aforesaid Holdings Co., Ltd.and fourth shareholder Rich Crown Investment Co., Ltd.. Is Union
shareholders Development Group Ltd.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
RMB Common
Union Holdings Co., Ltd. 43,141,032 43,141,032
shares
Foreign shares
STYLE-SUCCESS LIMITED 24,466,029 placed in 24,466,029
domestic
23
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
exchange
Shenzhen Textile (Group)Holdings RMB Common
6,958,246 6,958,246
Ltd shares
Foreign shares
placed in
Rich Crown Investment Co., Ltd. 6,114,556 6,114,556
domestic
exchange
RMB Common
Union Development Group Co., Ltd. 5,681,089 5,681,089
shares
Liuzhou Jiali Real estate RMB Common
4,220,000 4,220,000
Development Co., ltd. shares
Foreign shares
placed in
Zeng Ying 2,039,600 2,039,600
domestic
exchange
Liuzhou Ruiheng Mechatronics RMB Common
1,703,000 1,703,000
Co., Ltd. shares
Foreign shares
placed in
Qin Yuyan 1,005,376 1,005,376
domestic
exchange
Foreign shares
placed in
Shing Ying Chieh 909,962 909,962
domestic
exchange
Explanation on associated
relationship or consistent action
among the top 10 shareholders of The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
non-restricted negotiable shares and Holdings Ltd. and fourth shareholder Rich Crown Investment Co., Ltd.. Is Union
that between the top 10 shareholders Development Group Ltd.
of non-restricted negotiable shares
and top 10 shareholders
Notes to the shareholders involved
in financing securities (if any) (See N/A
Notes4)
Did any shareholder of the Company carry out an agreed buy-back in the reorting period?
□ Yes √ No
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
24
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
□ Applicable √ Not Applicable
Change of the actual controller in the reporting period
□ Applicable √ Not Applicable
25
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
VII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not Applicable
Shareholdings of directors, supervisors and senior management staff did not change in the reporting period. For
details, see the 2012 annual report.
II. Retirement and dismissal of Directors, Supervisors and senior Executives
Names Titles Types Date Causes
N/A
26
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
VIII. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit：RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 48,768,467.00 52,227,262.00
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 0.00 1,500,000.00
Account receivable 744,712.00 744,712.00
Prepayments 15,867.00 176,443.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 38,414.00
Dividend receivable
Other account receivable 339,073.00 260,005.00
Repurchasing of financial assets
Inventories 101,536.00 101,536.00
Non-current asset due in 1 year
27
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Other current asset
Total of current assets 49,969,655.00 55,048,372.00
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 564,228.00 751,542.00
Expired investment in possess
Long-term receivable
Long term share equity investment 65,712,614.00 65,784,312.00
Property investment 29,488,804.00 31,041,484.00
Fixed assets 12,204,036.00 12,416,459.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,840,611.00 1,860,764.00
R & D petrol
Goodwill 5,099,624.00 5,099,624.00
Long-germ expenses to be amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 114,909,917.00 116,954,185.00
Total of assets 164,879,572.00 172,002,557.00
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 3,214,947.00 3,239,571.00
Advance payment 7,827,624.00 2,778,488.00
Selling of repurchased financial assets
28
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Fees and commissions receivable
Employees’ wage payable 776,279.00 766,680.00
Tax payable 1,617,381.00 1,622,074.00
Interest payable
Dividend payable 1,215,946.00 1,215,946.00
Other account payable 22,676,923.00 32,227,317.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability 3,922,263.00 1,547,263.00
Total of current liability 41,251,363.00 43,397,339.00
Non-current liabilities：
Long-term loan 953,576.00 1,033,936.00
Bond payable
Long-term payable 8,338,729.00 8,488,953.00
Special payable
Expected liabilities
Differed income tax liability 753,092.00 766,660.00
Other non-current liabilities 836,792.00 836,792.00
Total of non-current liabilities 10,882,189.00 11,126,341.00
Total of liability 52,133,552.00 54,523,680.00
Owners’ equity
Share capital 169,142,356.00 169,142,356.00
Capital reserves 39,664,228.00 39,790,784.00
Less：Shares in stock
Special reserves
Surplus reserves 26,704,791.00 26,704,791.00
Common risk provision
Undistributed profit -120,397,547.00 -116,273,941.00
Different of foreign currency translation -994,294.00 -511,599.00
Total of owner’s equity belong to the
114,119,534.00 118,852,391.00
parent company
29
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Minority shareholders’ equity -1,373,514.00 -1,373,514.00
Total of owners’ equity 112,746,020.00 117,478,877.00
Total of liabilities and owners’ equity 164,879,572.00 172,002,557.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
2. Balance sheet of Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit：RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 12,706,881.00 17,293,509.00
Trading financial assets
Bill receivable 1,500,000.00
Account receivable
Prepayments
Interest receivable
Dividend receivable
Other account receivable 82,874,786.00 72,818,786.00
Inventories 101,536.00 101,536.00
Non-current asset due in 1 year
Other current asset
Total of current assets 95,683,203.00 91,713,831.00
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 36,788,953.00 36,788,953.00
Property investment 4,892,161.00 5,060,748.00
Fixed assets 9,118,735.00 9,145,661.00
Construction in progress
Engineering material
30
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,840,611.00 1,860,764.00
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 52,640,460.00 52,856,126.00
Total of assets 148,323,663.00 144,569,957.00
Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable 113,343.00 113,344.00
Advance payment 7,052,540.00 2,002,540.00
Employees’ wage payable 720,836.00 735,970.00
Tax payable 565,517.00 573,074.00
Interest payable
Dividend payable
Other account payable 895,076.00 884,092.00
Non-current liability due in 1 year
Other current liability 3,922,263.00 1,547,263.00
Total of current liability 13,269,575.00 5,856,283.00
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 4,180,138.00 4,180,138.00
Other non-current liabilities 836,792.00 836,792.00
Total of Non-current liabilities 5,016,930.00 5,016,930.00
31
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Total of liability 18,286,505.00 10,873,213.00
Owners’ equity
Share capital 169,142,356.00 169,142,356.00
Capital reserves 31,606,598.00 31,606,598.00
Less：Shares in stock
Special reserves
Surplus reserves 26,309,287.00 26,309,287.00
Provision of general risk
Undistributed profit -97,021,083.00 -93,361,497.00
Different of foreign currency translation
Total of owners’ equity 130,037,158.00 133,696,744.00
Total of liabilities and owners’ equity 148,323,663.00 144,569,957.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
3.Consolidated Profit Statement
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I. Income from the key business 4,990,626.00 5,019,787.00
Incl：Business income 4,990,626.00 5,019,787.00
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 6,628,035.00 6,669,607.00
Incl：Business cost 2,073,313.00 2,199,834.00
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
32
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 230,666.00 158,799.00
Sales expense
Administrative expense 4,050,058.00 4,358,499.00
Financial expenses 273,998.00 -47,525.00
Asset impairment loss
Add：Gains from change of fir value
-13,510.00
（“-”for loss）
Investment gain（“-”for loss） -71,083.00 428,646.00
Incl: investment gains from affiliates -71,083.00 417,624.00
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss -1,708,492.00 -1,234,684.00
Add：Non-business income 3,929.00 29,563.00
Less：Non business expenses 2,419,043.00 2,982,015.00
Incl：Loss from disposal of non-current
19,043.00 0.00
assets
IV.Total profit(“-”for loss) -4,123,606.00 -4,187,136.00
Less：Income tax expenses
V. Net profit（“-”for net loss） -4,123,606.00 -4,187,136.00
Including: Net profit realized by the
entity taken over before the takeover
Net profit attributable to the owners of
-4,123,606.00 -4,187,136.00
parent company
Minority shareholders’ equity
VI. Earnings per share： -- --
（I）Basic earnings per share -0.02 -0.02
(II)Diluted earnings per share -0.02 -0.02
VII. Other comprehensive income -609,251.00 -119,197.00
VIII. Total comprehensive income -4,732,857.00 -4,306,333.00
Total comprehensive income
attributable to the owner of the parent -4,732,857.00 -4,306,333.00
company
Total comprehensive income
33
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
attributable minority shareholders
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
4. Profit statement of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I. Income from the key business 908,470.00 741,567.00
Less：Business cost 168,586.00 239,378.00
Business tax and surcharge 76,269.00 0.00
Sales expense
Administrative expense 2,688,880.00 2,901,344.00
Financial expenses -770,606.00 -633,443.00
Asset impairment loss
Add：Gains from change of for value
0.00 -13,510.00
（“-”for loss）
Investment gain（“-”for loss） 0.00 11,022.00
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） -1,254,659.00 -1,768,200.00
Add：Non-business income 2,000.00 5,174.00
Less：Non- business expenses 2,406,927.00 2,982,015.00
Incl：Loss from disposal of non-current
assets
III.Total profit(“-”for loss) -3,659,586.00 -4,745,041.00
Less：Income tax expenses
IV. Net profit（“-”for net loss） -3,659,586.00 -4,745,041.00
V. Earnings per share： -- --
（I）Basic earnings per share
(II)Diluted earnings per share
VI. Other comprehensive income
34
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
VII. Total comprehensive income -3,659,586.00 -4,745,041.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
5. Consolidated Cash flow statement
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
6,412,358.00 5,167,056.00
rending of services
Net increase of customer deposits and
capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned
Other cash received from business
598,048.00 559,535.00
operation
Sub-total of cash inflow 7,010,406.00 5,726,591.00
35
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Cash paid for purchasing of
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 1,414,058.00 1,550,781.00
Taxes paid 1,058,641.00 1,054,536.00
Other cash paid for business activities 2,588,267.00 2,955,285.00
Sub-total of cash outflow from business
5,060,966.00 5,560,602.00
activities
Cash flow generated by business
1,949,440.00 165,989.00
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 21,841.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 5,087,000.00 30,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Net cash received from disposal of
subsidiaries or other operational units
Sub-total of cash inflow due to
5,087,000.00 51,841.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 62,063.00 83,272.00
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
36
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Sub-total of cash outflow due to
62,063.00 83,272.00
investment activities
Net cash flow generated by investment 5,024,937.00 -31,431.00
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
activities
Cash to repay debts 10,000,000.00
Cash paid as dividend, profit, or
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
10,000,000.00
financing activities
Net cash flow generated by financing -10,000,000.00
IV. Influence of exchange rate
-433,172.00 132,554.00
alternation on cash and cash equivalents
V.Net increase of cash and cash
-3,458,795.00 267,112.00
equivalents
Add: balance of cash and cash
52,227,262.00 53,399,316.00
equivalents at the beginning of term
VI.Balance of cash and cash equivalents
48,768,467.00 53,666,428.00
at the end of term
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
6. Cash flow statement of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
37
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Unit ：RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
2,408,470.00 856,782.00
rending of services
Tax returned
Other cash received from business
1,009,229.00 702,760.00
operation
Sub-total of cash inflow 3,417,699.00 1,559,542.00
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for staffs 990,236.00 919,417.00
Taxes paid 466,148.00 453,953.00
Other cash paid for business activities 1,619,943.00 2,066,267.00
Sub-total of cash outflow from business
3,076,327.00 3,439,637.00
activities
Cash flow generated by business
341,372.00 -1,880,095.00
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 21,841.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 5,072,000.00 30,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other cash receivable for investment
activities
Sub-total of cash inflow due to
5,072,000.00 51,841.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and other
long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
38
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Other cash paid for investment
activities
Sub-total of cash outflow due to
investment activities
Net cash flow generated by investment 5,072,000.00 51,841.00
III.Cash flow generated by financing
Cash received from absorbing
investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
activities
Cash to repay debts 10,000,000.00
Cash paid as dividend, profit, or
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
10,000,000.00
financing activities
Net cash flow generated by financing -10,000,000.00
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-4,586,628.00 -1,828,254.00
equivalents
Add: balance of cash and cash
17,293,509.00 21,483,163.00
equivalents at the beginning of term
VI.Balance of cash and cash equivalents
12,706,881.00 19,654,909.00
at the end of term
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
7. Consolidated Statement on Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Amount in this period
Unit：RMB
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Amount in this period
Owner’s equity Attributable to the Parent Company
Commo Minor Total of
Items
Less: Speciali Attribut
Share Capital Surplus n risk sharehold owners’
Shares zed able Other
Capital reserves reserves provisio ers’ equity equity
in stock reserve profit
n
169,142 39,790,7 26,704, -116,27 -511,59 -1,373,51 117,478,87
I.Balance at the end of last year
,356.00 84.00 791.00 3,941.00 9.00 4.00 7.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142 39,790,7 26,704, -116,27 -511,59 -1,373,51 117,478,87
current year ,356.00 84.00 791.00 3,941.00 9.00 4.00 7.00
-126,55 -4,123,6 -482,69 -4,732,857.
III.Changed in the current year
6.00 06.00 5.00 00
-4,123,6 -4,123,606.
（I） Net profit
06.00 00
-126,55 -482,69 -609,251.0
（II）Other misc.income
6.00 5.00 0
-126,55 -4,123,6 -482,69 -4,732,857.
Total of (I) and (II)
6.00 06.00 5.00 00
(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
（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
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
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
（VII）Other
IV. Balance at the end of this 169,142 39,664,2 26,704, -120,39 -994,29 -1,373,51 112,746,02
term ,356.00 28.00 791.00 7,547.00 4.00 4.00 0.00
Amount in last year
Unit：RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Commo Minor Total of
Items Less: Speciali Attribut
Share Capital Surplus n risk sharehold owners’
Shares zed able Other
Capital reserves reserves provisio ers’ equity equity
in stock reserve profit
n
169,142 39,742,4 26,704, -116,02 -515,91 -1,373,51 117,673,58
I.Balance at the end of last year
,356.00 73.00 791.00 6,610.00 4.00 4.00 2.00
Add：Retrospective adjustment
caused by merger of entities
under common control
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142 39,742,4 26,704, -116,02 -515,91 -1,373,51 117,673,58
current year ,356.00 73.00 791.00 6,610.00 4.00 4.00 2.00
\ III.Changed in the current 48,311.0 -247,33 -194,705.0
4,315.00
year 0 1.00 0
-247,33 -247,331.0
（I） Net profit
1.00 0
（II）Other misc.income 48,311.0 4,315.00 52,626.00
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
0
48,311.0 -247,33 -194,705.0
Total of (I) and (II) 4,315.00
0 1.00 0
(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
（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
（VII）Other
IV. Balance at the end of this 169,142 39,790,7 26,704, -116,27 -511,59 -1,373,51 117,478,87
term ,356.00 84.00 791.00 3,941.00 9.00 4.00 7.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
8. Statement of change in owner’s Equity of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Amount in this period
Unit：RMB
Amount in this period
Less: Common Total of
Items Share Capital Specialized Surplus Attributabl
Shares in risk owners’
Capital reserves reserves reserves e profit
stock provision equity
169,142,35 31,606,598 26,309,287 -93,361,49 133,696,74
I.Balance at the end of last year
6.00 .00 .00 7.00 4.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142,35 31,606,598 26,309,287 -93,361,49 133,696,74
current year 6.00 .00 .00 7.00 4.00
-3,659,586. -3,659,586.
III.Changed in the current year
00 00
-3,659,586. -3,659,586.
（I） Net profit
00 00
（II）Other misc.income
-3,659,586. -3,659,586.
Subtotal of (I) and (II)
00 00
(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
（IV）Profit allotment
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
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
（VII）Other
IV. Balance at the end of this 169,142,35 31,606,598 26,309,287 -97,021,08 130,037,15
term 6.00 .00 .00 3.00 8.00
Amount in last year
Unit：RMB
Amount in last year
Less: Common Total of
Items Share Capital Specialize Surplus Attributabl
Shares in risk owners’
Capital reserves d reserve reserves e profit
stock provision equity
169,142,35 31,606,598 26,309,287 -90,792,58 136,265,65
I.Balance at the end of last year
6.00 .00 .00 3.00 8.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142,35 31,606,598 26,309,287 -90,792,58 136,265,65
current year 6.00 .00 .00 3.00 8.00
-2,568,914. -2,568,914.
III.Changed in the current year
00 00
-2,566,647. -2,566,647.
（I） Net profit
00 00
（II）Other misc.income -2,267.00 -2,267.00
Subtotal of (I) and (II) -2,568,914. -2,568,914.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
00 00
(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
（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
（VII）Other
IV. Balance at the end of this 169,142,35 31,606,598 26,309,287 -93,361,49 133,696,74
term 6.00 .00 .00 7.00 4.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
（III）Basic Information of the Company
Shenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the Company"), grew out
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
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, 2013, 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-shares3,141,032 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 5,681,089 shares, accounting for 3.36%
of the total equity, Union Group holds 31.32% of equity of Union Holdings and has the right to control
Union Holdings, thus Union Group is the actual controller of the Company.
By June 30,2013, Victor Onward printing and dyeing (Hong Kong) Co., Ltd. (hereinafter referred to
as "Hong Kong Victor Onward"), Hong Kong Victor Onward Digital Printing Co., Ltd. (hereinafter referred
to as "Victor Onward Digital Printing"), Shengzhong Industrial Co., Ltd. (hereinafter referred to as
"Shengzhong") ,Shenzhen East Asia Victor onward Holding (hereinafter referred to as “East Asia
Company)and Shenzhen Nanhua Printing and Dyeing as well as its wholly-funded subsidiary Nanhua
Xingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are all subsidiaries of the Company.
The Group is mainly engaged in the production and processing (printing and dyeing) and sales of various
high-grade fabrics of pure cotton, pure linen, polyester-mixed cotton, linen cotton and mixed fiber and
finished garments. Registered address: 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Legal Representative: Hu Yongfeng
（IV）Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
The financial statements of the Group were prepared on basis of continuous operation and according
to actual transactions and matters, Accounting Standards for Business Enterprises promulgated by Ministry
of Finance and relevant regulations and the accounting policies and estimation stated in Note IV -
Important Accounting Policies and Accounting Estimate.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
2. Statement on complying with corporate accounting standards
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.
3. Fiscal year
The fiscal year of the Group starts on January 1 and ends on December 31 on the Gregorian calendar.
4. Accounting standard money
The Company and its subsidiary Nanhua Company changed their base currency for bookkeeping from
HKD into RMB because they received and made cash payment in RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
(1)The compiling method of combined financial statement
(1). Principles to determine the scope of merger:
The Group will include the subsidiaries which have actual controlling right and the subjects which have
special purpose into the scope of consolidated financial statements.
(2)Accounting methods adopted in consolidated financial statements:
The consolidated financial statements of the Group shall be compiled in accordance with Enterprise
Accounting Standards No. 33 - Consolidated Financial Statements and the related provisions, the major
internal transaction in the scope of consolidation and transactions shall be offset. The part of shareholders
equity of the subsidiary which does not belong to the parent company, shall be individually listed as equity
of minority shareholders in the consolidated financial statement.
If the accounting policy and accounting period of the subsidiary and the company are not consistent, when
compile consolidated financial statement, the financial statement of the subsidiary shall be adjusted
according to the accounting policy and accounting period of the company.
For the subsidiary obtained by corporate merger under different control, when prepare consolidated
financial statements, the individual financial statement shall be adjusted on the basis of fair value of the net
assets on the purchase day; for the subsidiary obtained by corporate merger under same control, it will be
taken as having been existed at the year beginning, its assets, liabilities, operating results and cash flow
shall be consolidated in the financial statement according to original book value since the year beginning of
the consolidation period.
6. Recognition Standard of Cash & 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
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
liquidity that are readily convertible to known amount of cash and subject to insignificant risk of changes
in value.
7. Foreign currency Convert
（1）Foreign currency Transactions
he 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 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.
From January 1 of the report year, the Company and its subsidiary Nanhua Company changed their base
currency for bookkeeping from HKD into RMB because they received and made cash payment in RMB.
At the time of change, all items were translated into items stated in base currency for bookkeeping at the
spot exchange rate quoted on the day of change. The amount after translation was taken as historical cost
calculated in new base currency for bookkeeping.
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.
8. Financial instruments
(1) Classification of financial instruments:
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.
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.
The expired investments held: refer to the non-derivative financial assets which have fixed expire date and
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
fixed or determined recovering amount, and the management level has the intention or ability to hold the
assets.
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.
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) Measurement of financial instruments
Financial assets are conducted initial confirmation by at fair value. The relevant expenses to obtain the
financial assets measured by fair value and the changes included in the current loss and gain shall be
included in the current loss and gain, the relevant transactional expenses of other financial assets shall be
the initial confirmation amount.
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 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.
Except for impairment losses and monetary financial assets in foreign currency exchange gains and losses,
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.
（1） Recognition basis and measurement for transferred financial assets
Financial assets to meet one of the following conditions, terminates confirmed: ① the right to
receive cash flows from the financial asset of the contract termination; ② the financial asset has been
transferred, and the group will finance almost on all the risks and rewards of ownership of assets
transferred to the party; ③ the financial asset has been transferred, although the Group has neither
transferred nor retained almost on all the risks and rewards of ownership of financial assets, but gave
up on the control of financial assets.
Enterprise has neither transferred nor retained almost on all the risks and rewards of ownership of
49
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
financial assets, and did not give up on the control of financial assets, in accordance with their continuing
involvement in transferred financial assets recognized on financial assets, and confirm the liabilities
accordingly.
Total transfers of financial assets to meet the termination of recognition criteria, the book value of the
transferred financial assets, and received by the transfer price and the original included in other
comprehensive income difference between the sum of the changes in the fair value of the cumulative
amount of included in the current profits and losses.
Financial assets part transfer meet terminated confirmed conditions of, will by transfer financial
assets overall of book value, in terminated confirmed part and is not terminated confirmed part, in
accordance with their of relative fair value for sharing, and will due to transfer and received of on price
and the should sharing to terminated confirmed part of original meter into other integrated income of fair
value changes Trojan amount of and, and sharing in book amount of difference meter into Dang period
profit and loss.
（4）The conditions to stopping the financial liabilities
The financial liabilities of our Group shall be classified into the financial liabilities or other ones which are
measured at their fair values and the variation of which is recorded into the profits and losses of the current
period when they are initially recognized.
The financial liabilities, which are measured at their fair values and the variation of which is recorded into
the profits and losses of the current period, including transactional financial liabilities and the financial
liabilities designated which are measured at their fair values and variation of which is recorded into the
profits and losses of the current period when they are initially recognized, shall be made subsequent
measurement on its financial assets according to their fair values, and the profits and losses arising from
the change in the fair value and the dividends and interests expenses related to the financial liability shall
be recorded into the profits and losses of the current period.
The subsequent measurement shall be made on the basis of the post-amortization costs by adopting the
actual interest rate method for other financial liabilities.
When financial liabilities present obligations in whole or in part have been discharged, terminating
confirmed part of the financial liabilities or obligations have been discharged. Terminating confirmed part
of the difference between the book value and paying the price, included in the current profits and losses.
（5）The determination method for fair value of financial assets and financial liabilities
1.If there is active market for a financial instrument, the quoted prices in the active market shall be used to
determine the fair values thereof. In the active market, the quoted prices of our Group for the financial
assets it holds or the financial liabilities it plans to assume shall be the present actual offer for the
corresponding fair values of assets or liabilities, while the quoted prices of our Group for the financial
assets it plans to acquire or the financial liabilities it has assumed shall be the available charge for the
corresponding fair values of assets or liabilities. Where there is no available offer or charge for a financial
asset or financial liability, but there is no any significant change to the economic environment after the
latest transaction day, we shall adopt the market quoted price of the latest transaction to determine the fair
value of the said financial asset or financial liability.
2.Where there is no active market for a financial instrument, we shall adopt value appraisal techniques to
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
determine its fair value. The value appraisal techniques mainly include the prices adopted by the parties,
who are familiar with the condition, in the latest market transaction upon their own free will, the current
fair value obtained by referring to other financial instruments of the same essential nature, the cash flow
capitalization method and the option pricing model, etc.
（6）Providing of impairment provision on financial assets (exclude receivable accounts)
Except for financial assets at fair value through profit and loss, the Group assesses at the balance sheet date
the carrying amount of other financial assets. If there is any objective evidence that a financial asset is
impaired, the Group provides for such impairment losses.
If there is objective evidence that an impairment loss has been incurred on financial assets carried at
amortized cost, the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows (excluding future credit losses that have not been
incurred). If in a subsequent period, the amount of the impairment loss increases and the increase can be
related objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognized in
the income statement.
If the fair value of an available-for-sale financial asset incurred a significant or prolonged decline, the
cumulative loss arising from the decline in fair value that has been recognized directly in shareholders’
equity is removed from shareholders’ equity and recognized in the income statement. If, after impairment
loss has been recognized on an available-for-sale debt instrument and the fair value of the debt instrument
increases in a subsequent period whereby the increase can be objectively related to an event occurring after
the impairment losses are recognized, the impairment loss is reversed and recognized in the profit and loss.
If, after impairment loss has been recognized on an available-for-sale equity instrument, the fair value of
the equity instrument increases in a subsequent period, the impairment loss is directly recognized in
shareholders’ equity.
9. Recognition standard and providing basis of bad debt provision on receivable accounts
The Group will recognize the following cases as the determination standard of loss on bad debts for
accounts receivable: the debt or others can't be repaid in the foreseeable period, e.g. the debtor units have
been closed, revocation, bankruptcy, insolvent, severe insufficient cash flow or the occurrence of natural
disasters; the repayment obligations are delayed and failed to be performed beyond 3-year by the debt
entities; there are other absolute evidences proving that unable to be collected or little possibility.
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 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.
（ 1 ） Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Account receivable with special account receivable
Judgment criteria or amount standard of material specific amount or
exceeding RMB 1 million is viewed as material accounts
amount criteria
receivable.
Provision Had debt preparation in accordance with the
Provision method with material specific amount and provision of
difference of present value of future cash flow below the
specific bad debt preparation
book value .
(2)The accounts receivable of bad debt provisions made by Group
Method for recognition of
Name impairment allowances by Basis of determination of groups
group
The group is classified by the credit risk features basised on the
Group of account age The age analysis
account age of receivables
The Group is classified by the credit risk features based on the
Group of Related party Other
relations of account receivables and transaction objects
The Group is classified by the credit risk features basised on the
Deposit group Other
account age of receivables .
Accounts on age basis in the portfolio：
√applicable□ not applicable
Age Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 3% 3%
1－2 years 10% 10%
2－3 years 50% 50%
Over 3 years 100% 100%
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
√applicable□ not applicable
Name Notes
Special relationship between the related party and the Group (such as joint
Related party Group ventures, associates, etc.), there is a little balance between the predicted
future cash flow and the carrying amount.
Including the rent deposit, purchase deposit and reserve deposit, etc., but
Deposit group without great individual amount and the bad debt reserves withdrawn by
combination are difficult to reflect the accounts receivable of risk features.
（2） Account receivable with non-material specific amount but specific bad debt preparation
Reason of specific bad debt preparation Accounts receivable with non-material specific amount and being not able to relent
provision： its risk character by provisioning bad debt preparation in accordance with portfolio
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Bad debt preparation will be provisioned in accordance with the difference of present
Provision method of bad debt preparation
value of its future cash flow below its book value.
10.Inventory
（1）Inventory classification
The inventories of the Company include raw materials, packing articles, low-value and easily-worn
articles ,Work-in-process and stock goods ,etc..
（2）Pricing method of stock delivered
Stock delivered is measured according to weighted average method.
（3）Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.
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 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.
（4）Inventory system
Inventory system adopts the perpetual inventory method.
（5）Amortization method of consumption goods with low value and wrap page
Consumption goods with low value: Consumption goods with low value adopt one time amortization method
when used. Packing:
Wrap page: Wrap page adopts one time amortization when used.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
11．Long-term equity investment
（1）Investment cost confirmation
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. 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. Apart from the long-term equity
investments stated above, the long-term equity investment obtained by cash, the initial investment obtained by
cash will be determined according to the price actually paid, initial investment costs include the direct costs, tax,
and other necessary expenses to obtaining long-term investment; the 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.
（2）Rear measuring and profit and loss confirmation method
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.Additional investment to
recover the cost of long-term equity 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 accounting 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. 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. The Group shall adopt the cost method to calculate for those invested units that never
have the jointed control or significant impacts due to the investment reduced, and a long-term equity investment
for which there is no quoted price in the active market and whose fair value cannot be reliably measured; Also, the
cost method shall be adopted to calculate for the long-term equity investment able to be implemented and
controlled to the invested units due to the investment supplemented; Moreover, the equity method shall be
adopted to account for performing the jointed control or significant impacts to the invested units but no control
54
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
formed due to the investment supplemented, or without control to the invested units but able to implement the
long-term equity investment of jointed control or major impacts to the invested units due to disposing of the
investment. The gap between the carrying amount and actual payment gained in disposal of the long-term equity
investment will be recorded into the investment interest of the current period. Using the equity method for
calculating the long-term equity investment which is recorded into the owner's equity due to other changes except
for the net profits or losses of the invested units, the initial parts recorded into the owner's equity shall be
transferred into the investment returns of the current period when disposal of the investment.
（3） Confirm the basis that has common control and major infection upon invested unit.
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.
（4）Depreciation testing method and depreciation reserve withdrawal method.
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.
(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
55
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
are far below (or above)the expected amount.
(7) Other signs showing the assets may have or have had impairment.
12. 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 Expected useful Estimated residual value rate Annual depreciation r
life（Year） ate（%）
20-50 years 0% 2%-5%
Real estate in
Hongkong
20-30 years 10% 3%-4.5%
Real estate in
China
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.
Using the fair value model for subsequent measurement, should disclose the accounting policy adopted
pursuant to, including the identification of investment real estate market real estate locations have active basis;
Companies able to make the same or similar from the real estate market real estate market prices and other
relevant information, so as to estimate the fair value of investment property basis; Indication of when to estimate
the fair value of investment property key assumptions and main determining factors involved.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
13. Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to the tangible assets which have the following characteristics at the same time, namely,
held for production of goods, providing services, leasing or operation and management, and the life span shall not
be more than a year, and the unit value is high. Classification of fixed assets: houses and buildings, machinery and
equipments, transportation equipments, office equipments and others. 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.
（2）Fixed assets depreciation method
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:
Type Evpected useful Estinated residual value rate Annual depreciation rate（%）
life（Year）
Real estate in
20-50 years 0% 2%-5%
Hongkong
Real estate in
5-14 years 10% 6%-18%
China
Machinery and equipment 5 years 10% 18%
Transportation equipment 4-5 years 10% 18%-22.5%
Office equipment and other 5 years 10% 18%
（3）Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
At the end of each year, the Group shall recheck the predicted service life of fixed assets, the predicted net
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
residual value and depreciation method, if changes happen, then it shall be treated as accounting estimate.
（4）Other
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 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.
14. Projects under construction
（1）Categories of projects under construction
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.
（2）Standard and timing for transferring of projects under construction to fixed assets
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.
15. Borrowing cost
（1）Principle of the recognition of capitalized borrowing costs
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.
（2）Temporarily suspension of capitalizing period
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, Asset acquisition or production activities began.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
（3）Calculating of borrowing expense capitalizing
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.
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.
16.Intangible assets
（1）Pricing of 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.
（2）Estimation of service life of intangible assets with limited service life
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.
（4）Provision for impairment of investment assets
Provision for impairment of investment assets Refer to 11. Long-term equity investment (4) - Methods of
Impairment Testing and Provision for Impairment for the details of methods of impairment testing and provision
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
for impairment.
17.Long-term amortization 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.Predicted liabilities
（1）Recognition of 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.
（2）Accounting of Predicted liabilities
Predicted liabilities shall be conducted initial measurement according to the best estimates of related existing
liabilities, and comprehensively consider risks, uncertainties and the time value of money and other factors
relating to contingent events. Time value of money has the greatest influence, the best estimates shall be
determined by future cash outflow. On the balance sheet, recheck the book value of predicted liabilities, adjust the
book value to reflect the current best estimates if there are any changes.
19. Revenues
（1）Recognition time for sales of goods
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.
（2）Incomes from transferring asset use right
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.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
20. Governmental subsidy
（1）Categories
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).
（2）Accounting treatment
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.
21. Deferred income tax assets/Deferred income tax liability
（1）Confirmation of deferred income tax assets
（1）Confirmation of deferred income tax assets
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. On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be
measured by the predicted application rate.
(2) The confirmation of deferred income tax liability
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.
22.Operational leasing and Financing leasing
（1）Accounting of operational leasing
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.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
（2）Accounting treatment of financing leasing
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.
23.Other principal accounting policies, estimations and preparation method of financial statements
1）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.
2）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.
If decide to relieve the labor relationships with employee before the employment contracts become mature, or
encourage workers to voluntarily accept the compensation proposal due to redundancy, while the Group has have
a formal plan for termination of labor relationship or have proposed the voluntary redundancy scheme which will
be implemented, and the Group is unable to unilaterally withdraw the plan on the cancellation of labor
relationship or the layoff proposal, the anticipated debts, confirmed to be caused by the compensation due to
relieve of labor relationships with workers, shall be recorded into the profits and losses of the current period.
3)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.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
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.
4）Corporate consolidation
Corporate consolidation refers to two or more separate companies merge and form a transaction or event of
report subject. The consolidation day or purchase day or the consolidation date of obtaining the assets or liabilities,
shall be confirmed as the date of obtaining the control right of the party being merged or purchased.
The corporate consolidation under same control: the assets and liabilities obtained by the consolidation party in
the merger shall be measured according to the book value of merged party on the consolidation day. The
difference between the book value of net assets obtained by the consolidation party and the book value of the
consolidation price paid, the capital public reserve shall be adjusted; if the capital public reserve is not enough to
be deducted, the retained earnings shall be adjusted.
The corporate consolidation under different control: the consolidation cost is the fair value of equity stocks
issued and the assets and debts paid to obtain the control right of the purchased party on the purchase day. The
difference between the consolidation cost and fair value of recognizable net asset, shall be confirmed as goodwill;
if the consolidation cost is smaller than the fair value of recognizable net asset of the purchased party, the
difference shall be included in current loss and gain upon confirmation.
（V）Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
Income from sales of products and
VAT 17%
processing
Business tax Business income 5%
City maintenance and construction tax Turnover tax 7%
Enterprise income tax Amount of income taxable 25%
Education surtax Turnover tax 3%
Local surcharge for Education Turnover tax 2%
Income tax rate applicable to branches and factories.
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 25% in 2013
the interest rate of the income from Hong Kong of the subsidiaries in Hong Kong is 17%.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
3.Other
The subsidiaries of the company in Hong Kong do not need to pay the domestic tax.
(VI) Enterprise consolidation and combined financial statements
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
Unit：RMB
After
wrote
down
current
period
loss of
minority
sharehol
ders
Amount over
Other
used to equity
projects
write beginni
balance
Actual Proporti Whether Interest down ng share
Full essential Holding
Registra Register capital on of consolid of lost of
name of Subsidia Busines Busines ly from proporti
tion ed amounts voting ation of minority included minority
subsidia ry type s s scope net on
place capital of rights(% report sharehol in sharehol
ry investm (%)
the end ) form der minority ders in
ent to
sharehol the
subsidia
der subsidia
ry
interest ry from
the
parent
compan
y’s
share ,B
alance
of
Owner's
equity
Hong 2,400,0 Purchas
Limited
Kong Hong 02 e of raw
Compan Trade 0.00 100% 100% Yes 0.00 0.00 0.00
Victor Kong （HKD material
y
Onward ） s,
64
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Co.Ltd marketi
ng of
printed
and
dyed
woven
fabrics,
investm
ent and
holding
business
Sales of
Corduro
Shenzho 1,000,0
Limited y, dyed
ng Hong 00
Compan Trade cloth 0.00 100% 100% Yes 0.00 0.00 0.00
Compan Kong （HKD
y and
y ）
printed
cloth
Producti
on and
85,494, sales of
Nanhua Limited
Shenzhe Product 700 printed
Compan Compan 0.00 69.44% 69.44% Yes 0.00 0.00 0.00
n ion （HKD cloth
y y
） and
dyed
cloth
Sales of
printed
Xinye Limited 10,000
Hong cloth
Compan Compan Trade （HKD 0.00 100% 100% Yes 0.00 0.00 0.00
Kong and
y y ）
dyed
cloth
Textilet,
Printing
and
dyeing
Shenzh
Limited industry
en East Shenzhe 3,000,0 1,530,0 -1,373,5
Compan Trade and 0.00 51% 51% Yes 0.00 0.00
Asia n 00 00.00 14.00
y Raw
Co
material
s ,Machi
nery
equipme
65
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
nt and
other
fabrics
Other statements on Subsidiaries obtained through incorporation or investment：
1.The Company invested HKD 2,400,002 in 1984 to establish Hongkong Victor Onward Company In
Hongkong.
2.Shenghong Company Was established in November 9, 1993, registered capital 1 million HKD, Hongkong
Victor Onward Holding 100% equity.
3.Nanhua Company was established in July 21 1988, registered capital 85.49 million HKD, By June 30,
2013 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.Xingye Company invested HKD 10,000 to establish industry Company in Hongkong 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 , Nanjiang East ASIA Textile Co., Ltd. Invested 1.47
million yuan , holding 49% equity.
2. Foreign currency translation
The spot exchange rate of HKD to RMB WAS 0.81090 at year beginning , and the spot exchange rate at year
endwas0.79655 the approximate exchange rate of the sot exchange rate uses the current average exchange rate
0.80373.
（VII）. Notes to the major items of consolidated financial statement
（I）Monetary Capital
Unit：RMB
Year-end balance Year-beginning balance
Items Exchange Exchange
Foreign currency RMB Foreign currency RMB
rate rate
66
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Cash -- -- 107,169.00 -- -- 66,684.00
RMB -- -- 102,239.00 -- -- 62,790.00
HKD 6,189.00 0.79655 4,930.00 4,802.00 0.8109 3,894.00
Bank deposit -- -- 47,992,355.00 -- -- 51,492,804.00
RMB -- -- 21,352,709.00 -- -- 25,739,776.00
HKD 32,112,956.00 0.79655 25,579,575.00 30,435,747.00 0.8109 24,680,347.00
USD 171,569.00 6.1787 1,060,071.00 170,660.00 6.29% 1,072,681.00
Other monetary capital -- -- 668,943.00 -- -- 667,774.00
RMB -- -- 668,943.00 -- -- 667,774.00
Total -- -- 48,768,467.00 -- -- 52,227,262.00
Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,
stored overseas, with potential recovery risk.
2.Bill receivable
（1）Classification bill receivable
Unit：RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 0.00 1,500,000.00
Total 0.00 1,500,000.00
3. Interest receivable
（1）Interest receivable
Unit :RMB
Items Beginning of term Increased this term Decreased this term End of term
Fixed deposit interest 38,414.00 0.00 38,414.00 0.00
Total 38,414.00 38,414.00
4. Account receivable
1.Classification account receivables.
Unit :RMB
Classification Amount in year-end Amount in year- begin
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Book Balance Bad debt provision Book Balance Bad debt provision
Amount Proportion( Amount Proportion( Amount Proportion( Amount Proportion(%
%) %) %) )
Receivables with major
individual amount and bad
debt provision provided
individually receivables 3,715,397.0 2,970,685.0 3,715,397
29.48% 79.96% 29.48% 2,970,685.00 79.96%
with major individual 0 0 .00
amount and bad debt
provision provided
individually
Receivables provided bad debt provision in groups
Account receivable with
minor individual amount 8,888,114.0 8,888,114.0 8,888,114
70.52% 100% 70.52% 8,888,114.00 100%
but bad debt provision is 0 0 .00
provided
12,603,511. 11,858,799. 12,603,51 11,858,799.0
Total -- -- -- --
00 00 1.00 0
Category explanation of accounts receivable:
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □ not applicable
Unit:RMB
Description Book balance Bad debt provision Rate(%) Reason to provide
Hong Kong Victor Onward Co., Ltd. 1,606,281.00 861,569.00 53.64% Aging long
Carnival Index International Ltd 1,098,820.00 1,098,820.00 100% Aging long
TAI YANG ENTERPRISE CO.,LTD 1,010,296.00 1,010,296.00 100% Aging long
Total 3,715,397.00 2,970,685.00 -- --
Account receivable on which bad debt provisions are provided on age basis in the group
□Applicable √Not applicable
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the Group：
□Applicable √Not applicable
Receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
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Description Of account
Book balance Amount of bad debt rate Reason
receivables
VEGA GARMENT
768,189.00 768,189.00 100% Aging long
CO.,Ltd.
Fly Dragon International 573,677.00 573,677.00 100% Aging long
Grateful Textiles Co.,Ltd. 566,801.00 566,801.00 100% Aging long
World Fabrica (Int'l) Ltd. 465,241.00 465,241.00 100% Aging long
Shenzhen Fangzhou
446,352.00 446,352.00 100% Aging long
Textiles Co., Ltd.
Ezhou Xiangya Clothing
351,500.00 351,500.00 100% Aging long
Co., Ltd.
Tak Shing Buying Office
333,584.00 333,584.00 100% Aging long
Ltd.
Starline Textile Co.,Ltd. 332,316.00 332,316.00 100% Aging long
Shenye Union （HK）
299,428.00 299,428.00 100% Aging long
Co.., Ltd.
Panther Fabric Ltd. 295,161.00 295,161.00 100% Aging long
Changshu Zhongjiang
Clothing Import & 270,134.00 270,134.00 100% Aging long
Export Co., Ltd.
Victor Onward
245,621.00 245,621.00 100% Aging long
Textile(HK)Co., Ltd.
Nissho Iwai HK Co., Ltd. 215,282.00 215,282.00 100% Aging long
Unimix Ltd. 192,939.00 192,939.00 100% Aging long
Tai Hing Linings Co.,
191,342.00 191,342.00 100% Aging long
Ltd
Human Changpuan
185,981.00 185,981.00 100% Aging long
Garment
Ningbo Youngor
Fukurmura Uniforms 172,910.00 172,910.00 100% Aging long
Co., Ltd.
Win favour evelopment
146,636.00 146,636.00 100% Aging long
ltd.
Speedy Textiles Co., 146,538.00 146,538.00 100% Aging long
Lin Feng Textile Co., 135,719.00 135,719.00 100% Aging long
Lin Feng Textile Co., 135,719.00 135,719.00 100% Aging long
Jicheng Cotton Co., Ltd. 131,987.00 131,987.00 100% Aging long
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Millionaire(HK)Weaving
124,280.00 124,280.00 100% Aging long
Ltd.
Leader Day Ltd. 121,960.00 121,960.00 100% Aging long
Tex Mate Fabrics (HK) 110,051.00 110,051.00 100% Aging long
New Design Textiles Ltd. 109,205.00 109,205.00 100% Aging long
Deep Success Industrial
102,631.00 102,631.00 100% Aging long
Ltd.
Wynvaye Industrial Co,. 101,055.00 101,055.00 100% Aging long
ACTSUNLTD. 89,635.00 89,635.00 100% Aging long
Quanzhou Ldeal Bird
80,518.00 80,518.00 100% Aging long
Garment Co., Ltd.
Tamurakoma Co Ltd. 77,847.00 77,847.00 100% Aging long
International Textiles
65,477.00 65,477.00 100% Aging long
Co,.
Shenzhen Hongtian
59,395.00 59,395.00 100% Aging long
Cloth Trade Co., Ltd.
Ho Cheong Textiles Ltd. 54,620.00 54,620.00 100% Aging long
Origin Textiles Co Ltd. 54,169.00 54,169.00 100% Aging long
Wing Fook Piecegoods
50,401.00 50,401.00 100% Aging long
Co.,Ltd.
Wing Shum Piecesgoods
49,917.00 49,917.00 100% Aging long
Co., Ltd.
Gold Eagle Textiles
47,600.00 47,600.00 100% Aging long
Limited
Tangshan Lifeng
45,761.00 45,761.00 100% Aging long
Clothing Co., Ltd.
Charman Trading Co 43,863.00 43,863.00 100% Aging long
Other 896,672.00 896,672.00 100% Aging long
Total 8,888,114.00 8,888,114.00 -- --
（2）The front 5 units’ information of account receivable
Unit ：RMB
Relation with the Portion in total
Name Amount Ages
Company receivables (%)
Victor Onward
Non-Related parties 1,606,281.00 Over 3 years 12.74%
Textile(HK)Co., Ltd.
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Carnival Index
Non-Related parties 1,098,820.00 Over 3 years 8.72%
International Ltd
TAI YANG
Non-Related parties 1,010,296.00 Over 3 years 8.02%
ENTERPRISE CO.,LTD.
VEGA GARMENT
Non-Related parties 770,071.00 Over 3 years 6.11%
CO.,LTD
Fly Dragon International Non-Related parties 573,677.00 Over 3 years 4.55%
Total -- 5,059,145.00 -- 40.14%
（3）Account receivable from Related parties
Unit：RMB
Portion in total receivables
Name Relation with the company Amount
account(%)
The related parties controlled
Shenye Union（HK）Co., Ltd. 299,428.00 2.38%
the same Actual controller
Total -- 299,428.00 2.38%
5. Other receivable
1.Type analyses:
Unit：RMB
Amount in year-end Amount in year-begin
Book Balance Bad debt provision Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Amount Proportion( Amount Proportio
n(%) n(%) %) n(%)
Other receivables with
major individual amount
3,368,370.00 71.4% 3,368,370.00 100% 3,368,370.00 72.62% 3,368,370.00 100%
and had debt provision
provided individually
Other receivables provided bad debt provision in groups
Account age group 339,073.00 7.19% 0.00 0% 260,005.00 5.6% 0.00 0%
Subtotal of group 339,073.00 7.19% 0.00 0% 260,005.00 5.6% 0.00 0%
Other account
receivablewith minor
individual amount but 1,010,019.00 21.41% 1,010,019.00 100% 1,010,019.00 21.78% 1,010,019.00 100%
bad debt provision is
provided
Total 4,717,462.00 -- 4,378,389.00 -- 4,638,394.00 -- 4,378,389.00 --
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Category explanation of other accounts receivable:
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
Unit：RMB
Decription Book balance Amount of bad debts Rate（%） Reason
Nanjing East Asia 1,313,370.00 1,313,370.00 100% Aging long
CCB.Guangdong
1,080,000.00 1,080,000.00 100% Aging long
Shunde Branch
Changzhou Dongfeng
Textile Printing & dyeing 975,000.00 975,000.00 100% Aging long
Equipment Co., Ltd.
Total 3,368,370.00 3,368,370.00 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Content Book balance Bad debt Provision Rate（%） Reason
HongKong Victor
694,122.00 694,122.00 100% Aging long
Onward
Shanghai Huayinke
180,000.00 180,000.00 100% Aging long
Trade Industry Co., Ltd.
Shenzhen Environmental
Management System 35,000.00 35,000.00 100% Aging long
Certification Center
Shenzhen Design
Institute of Ministry of
30,000.00 30,000.00 100% Aging long
Machinery Industry
Shanghai Branch
Other 70,897.00 70,897.00 100% Aging long
Total 1,010,019.00 1,010,019.00 -- --
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（2）The front 5 units’ information of other account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
company receivables(%)
Nanjing East Asia Non-Related parties 1,313,370.00 Over 3 years 27.84%
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 22.89%
Branch
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 20.67%
Equipment Co., Ltd.
HongKong Victor
Non-Related parties 694,122.00 Over 3 years 14.71%
Onward
Shanghai Huayinke
Non-Related parties 180,000.00 Over 3 years 3.82%
Trade Industry Co., Ltd.
Total -- 4,242,492.00 -- 89.93%
6.Prepayments
（1）Prepayments age :
Unit:RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 15,867.00 100% 175,734.00 99.6%
1-2 years 442.00 0.25%
2-3 years 267.00 0.15%
Total 15,867.00 -- 176,443.00 --
Notes to age of payment in advance:：
（2） The front 5 units’ information of Prepayments
Unit：RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
Insurance Non-Related parties 9,418.00 Not settlement
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Repair fee Non-Related parties 4,012.00 Not settlement
Vehicle license fees Non-Related parties 1,418.00 Not settlement
Other Non-Related parties 1,019.00 Not settlement
Total -- 15,867.00 -- --
Notes
（3）Statements on prepayments
Name Amount at period-end Amount at period-beginning
Former Converting RMB Former Converting rate RMB
currency rate currency
HKD 19,919 0.79655 15,867 217,589 0.8109 176,443
Total 15,867 176,443
7．Inventory
（1）Inventory types
Unit：RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for bad Book value
bad debts debts
Raw materials 2,030,715.00 1,929,179.00 101,536.00 2,030,715.00 1,929,179.00 101,536.00
Stock goods 635,960.00 635,960.00 0.00 635,960.00 635,960.00 0.00
Total 2,666,675.00 2,565,139.00 101,536.00 2,666,675.00 2,565,139.00 101,536.00
（2）Inventory Impairment provision
Unit：RMB
Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
Type end
Transferred back Reselling
beginning current period
Raw materials 1,929,179.00 1,929,179.00
Stock goods 635,960.00 635,960.00
Total 2,565,139.00 2,565,139.00
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（3） Condition of inventory value decline
Items Base of stock value decline Reason of issuing back to stock Proportion of issuing back
value decline plan of this period amount to the stock balance at
this period
Statement on inventories：
The Company has been out of production, the closing inventories shall be written down after deducting the full a
mount provisions except the preservation materials .
8. Disposable financial asset
（1）Sellable financial assets
Unit：RMB
Items Fair value at end of term Fair value at beginning of term
Available-for-sale equity instruments 564,228.00 751,542.00
Total 564,228.00 751,542.00
The amount of investment held to mature recategorized to sellable financial assets was RMB 0 , Account for 0%
of total investment held to mature.
Statement on sellable financial assets:
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.
9. Investment to joint venture and Affiliated Enterprises
Unit：RMB
Company vote
right
Company Total business
percentage in Ending total Ending total Ending net Current
Name
shareholding revenues at this
the invested assets liabilities assets net profit
percentage (%) period
unittion of
units (%)
I. Joint venture
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
II. Affiliated enterprise
Zhejiang Union
Hangzhou
1,503,943,957. 1,201,964,045.
Bay 25% 25% 301,979,912.00 22,742,368.00 -284,333.00
00 00
Chuangye
Co., Ltd.
Statements on material diversity in accounting policies, estimations adopted by the Company and the affiliates:
10. Long term share equity investment.
76
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
（1）Details of long-term equity investment
Unit：RMB
Explainati
on of
diffirence
between
Sharehold Voting sharehold
Accounti Initial ing right ing
Original Ending Current Cash
Name ng investmen change proportio proportio proportio Devalue
balance Balance devalue bonus
method t cost n in the n in the n and
investee investee voting
right
proportio
n in
investee
Zhejiang
Union
Hangzho Equity 58,588,40 65,784,31 65,712,61
71,698.00 25% 25% N/A 0.00 0.00 0.00
u Bay method 3.00 2.00 4.00
Chuangye
Co., Ltd.
58,588,40 65,784,31 65,712,61
Total -- 71,698.00 -- -- -- 0.00 0.00 0.00
3.00 2.00 4.00
11.Investment real estate
（1）Measured by the cost of investment in real estate
Unit：RMB
Items Book amount at year Increase at this period Decrease at this period Book balance in year -end
beginning
96,920,525.00 222,397.00 611,470.00 96,531,452.00
1. Total original price
96,920,525.00 222,397.00 611,470.00 96,531,452.00
1.House, Building
II.Total accumulated 65,879,041.00 1,163,607.00 67,042,648.00
depreciation
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accumulated
amortization
65,879,041.00 1,163,607.00 67,042,648.00
1.House, Building
III. Total book value
31,041,484.00 -941,210.00 611,470.00 29,488,804.00
of investment real
estate
31,041,484.00 29,488,804.00
1.House, Building
IV. Total of
accumulated provision
0.00
for devaluation of
investment real estate
1.House, Building 0.00
V. Total book value of
31,041,484.00 -941,210.00 611,470.00 29,488,804.00
investment real estate
1.House, Building 31,041,484.00 29,488,804.00
Unit：RMB
This period
Current amount of deprectiation and amortization 1,163,607.00
Investment real estate in this period the amount of impairment 0.00
12. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at Increase at this period Decrease at this Book balance in
year beginning period year -end
1.Total of Original price of
161,276,810.00 7,644.00 866,087.00 160,418,367.00
fixed assets
Including ：House and
47,973,327.00 47,973,327.00
building
Machine equipment 99,308,680.00 99,308,680.00
Transporation Equipment 4,870,110.00 542,659.00 4,327,451.00
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Electricity equipment and
9,124,693.00 7,644.00 323,428.00 8,808,909.00
other
Book balance at Current term Current term Decrease at this Book balance in
--
year beginning new extra provision period year -end
II. Total of Accumulated
111,245,417.00 121,945.00 767,965.00 110,599,397.00
depreciation
Including ：House and
26,436,963.00 55,614.00 26,492,577.00
building
Machine equipment 75,000,283.00 75,000,283.00
Transporation Equipment 3,864,419.00 57,407.00 488,635.00 3,433,191.00
Electricity equipment and
5,943,752.00 8,924.00 279,330.00 5,673,346.00
other
Book balance in Balance in
-- --
year-begin year-end
III. Total book value of
50,031,393.00 -- 49,818,970.00
Fixed assets
Including ：House and
21,536,364.00 -- 21,480,750.00
building
Machine equipment 24,308,397.00 -- 24,308,397.00
Transporation Equipment 1,005,691.00 -- 894,260.00
Electricity equipment and
3,180,941.00 -- 3,135,563.00
other
IV. Total of Devalued
37,614,934.00 -- 37,614,934.00
Provision
Including ：House and
15,466,004.00 -- 15,466,004.00
building
Machine equipment 19,407,245.00 -- 19,407,245.00
Transporation Equipment 50,276.00 -- 50,276.00
Electricity equipment and
2,691,409.00 -- 2,691,409.00
other
V. Total book value of
12,416,459.00 -- 12,204,036.00
Fixed assets
Including ：House and
6,070,360.00 -- 6,014,746.00
building
Machine equipment 4,901,152.00 -- 4,901,152.00
Transporation Equipment 955,415.00 -- 843,984.00
Electricity equipment and 489,532.00 -- 444,154.00
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other
Current depreciation is RMB121,945.00 . The issue of fixed assets transferred from construction in progress original price is RMB 0.
（2）Fixed assets temporarily in idle status
Unit：RMB
Accumulated Impairment
Items Original book value Net book value Notes
depreciation provision
House and building 44,541,973.00 25,173,561.00 15,466,005.00 3,902,407.00
Machine
98,998,752.00 74,858,652.00 19,471,657.00 4,668,443.00
equipment
Transporation
2,979,438.00 2,681,462.00 297,976.00
Equipment
Electricity
7,543,601.00 4,839,872.00 2,504,293.00 199,436.00
equipment and other
Total 154,063,764.00 107,553,547.00 37,441,955.00 9,068,262.00
13. Intangible assets
（1） Intangible assets
Unit ：RMB
Items Book Balance in Book Balance in
Increase at this period Decrease at this period
year-begin year-end
13,023,720.00 13,023,720.00
1. Total original price
12,356,137.00 12,356,137.00
Land Use right
Software 667,583.00 667,583.00
II. Total amount of
10,935,796.00 20,153.00 10,955,949.00
accumulated
10,495,373.00 20,153.00 10,515,526.00
Land Use right
Software 440,423.00 440,423.00
III. Book value of
2,087,924.00 -20,153.00 2,067,771.00
intangible assets
1,860,764.00 1,860,764.00
Land Use right
Software 227,160.00 227,160.00
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IV.Total value of
227,160.00 227,160.00
provision for impairment
Land Use right
Software 227,160.00 227,160.00
V. Total Book value of
1,860,764.00 -20,153.00 1,840,611.00
intangible assets
1,860,764.00 -20,153.00 1,840,611.00
Land Use right
Software
The amortization amount is RMB 20,153.00.
14.Goodwill
Unit：RMB
Name of the investee or the Balance in Increase at this Decrease at this Balanve in Ending devalue
matter of forning Goodwill year-begin period period year-end provision
For the goodwill formed from
holding shares of Nanhua 5,099,624.00 0.00 0.00 5,099,624.00 0.00
Company,
Total 5,099,624.00 0.00 0.00 5,099,624.00 0.00
Statement of basis for impairment testing and provision of goodwill：
Nanhua Company has suspended production and maintained daily operation by renting houses. Although the
net assets of Nanhua Company are negative, Nanhua Company has large area of land and house properties in the
urban area of Shenzhen, whose fair value is much higher than its book value. In the opinion of the Company, the
impairment of the goodwill formed by this investment has not occurred.
15. Deferred income tax assets and deferred income tax liability
1. Confirmed the deferred income tax assets and deferred income tax liability
Unit:RMB
Recognized deferred income tax assets and deferred income tax liabilities
Items Year-end balance Year-beginning balance
Deferred income tax assets:
Deferred income tax liability：
Assessed tax-free periods of time caused by
753,092.00 766,660.00
differences in income
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Subtotal 753,092.00 766,660.00
Unit：RMB
Items At end of term At beginning of term
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Unit:RMB
Year At end of term At beginning of term Notes
Details of taxable differences and deductible differences
Unit:RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Deductible difference project
（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
Statement on deferred income tax assets and liabilities：
Unit：RMB
Temporarily Temporarily
Deferred Income Tax Deferred Income Tax
Deductable or Deductable or
Assets or Liabilities Assets or Liabilities
Items Taxable Difference at Taxable Difference at
at the End of Report at the Beginning of
the End of Report the Beginning of
Period Report Period
Period Report Period
Deferred income tax liability： 753,092.00 766,660.00
Details of taxable differences and deductible differences
Unit：RMB
Items Offsetting Amounts of This Period
Details of taxable differences and deductible differences
16. Provision for depreciation of assets
Unit ：RMB
Items Book balance at the Increase in this Decreased in this period Balance in
82
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
beginning of term period Switch year-end
Switch back
cancellation
I.Provision for bad debts 16,237,188.00 16,237,188.00
2 Inventory impairment
2,565,139.00 2,565,139.00
provision
5. Long-term equity
investment impairment 0.00 0.00
provision
7.Fixed asset impairment
0.00
provision
12. Intangible asset
37,614,934.00 37,614,934.00
impairment provision
13. Goodwill impairment
227,160.00 227,160.00
provision
Total 0.00
合计 56,644,421.00 56,644,421.00
Notes
17. Account payable
（1）Account payable
Unit ：RMB
Items Balance in year-end Balance in year-begin
Over 1 year 3,214,947.00 3,239,571.00
Total 3,214,947.00 3,239,571.00
(2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares
of the company
Unit ：RMB
Name Balance in year-end Balance in year-begin
Total 0.00 0.00
(3)The description of large-sum accounts payable with the age over 1 year:
Accounts payable with age over one year included a number of accounts, without single significant amount
of accounts payable.
18. Advance account
1. Advance account
Unit：RMB
83
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Items Balance in year-end Balance in year-begin
Within 1 year 5,050,000.00
Over 1 year 2,777,624.00 2,778,488.00
Total 7,827,624.00 2,778,488.00
19. Payable Employee wage
Unit：RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
allowances and 618,755.00 1,325,422.00 1,325,422.00 618,755.00
subsidies
2.Employee welfare 26,500.00 26,500.00
3. Social insurance
138,532.00 138,532.00
premiums
Medical insurance 35,067.00 35,067.00
Basic old-age
insurance 93,036.00 93,036.00
premiums
Unemployment
3,955.00 3,955.00
insurance
Work injury
3,216.00 3,216.00
insurance
Maternity
3,258.00 3,258.00
insurance
IV. Public reserves
37,102.00 37,102.00
for housing
VI. Other 147,925.00 9,599.00 157,524.00
Total 766,680.00 1,537,155.00 1,527,556.00 776,279.00
The amounts of arrears of staff salary and welfare payable are RMB 0 00.
The amounts of trade union funds and staff education expenses are RMB35,692.00, the amounts of non-monetary
benefits are RMB 0.00, and the compensations for the lifting of labor relations is RMB 0.00
The expected release time and amount of staff salary and welfare payable are arranged in the beginning of next
year.
20. Tax Payable
Unit：RMB
Items At end of term At beginning of term
VAT -139,455.00 -139,455.00
84
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Business Tax 142,648.00 147,341.00
Enterprise Income tax 1,204,210.00 1,204,210.00
House property Tax 187,320.00 187,320.00
Stamp Tax 222,658.00 222,658.00
Education subjoin
Local education surcharges
Total 1,617,381.00 1,622,074.00
Statement on tax payable: Please provide the calculating processes then taxable income is balanced between
branch companies or factories as approved by the tax bureau.
21.Dividend payable
Unit：RMB
Name At end of term At beginning of term Reason of overdue for one year
State Development & Investment
243,189.00 243,189.00 Capital tense
Co., Ltd*2
CITIC Group*2 243,189.00 243,189.00 Capital tense
Shenzhen Nanyou (Group)
121,595.00 121,595.00 Capital tense
Company*2
Shenye Union（Hongkong）Co., Ltd. 121,595.00 121,595.00 Capital tense
HongKong Victor Onward 486,378.00 486,378.00 Capital tense
Total 1,215,946.00 1,215,946.00 --
Notes
*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 three companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
22. Other payable
（1）Other payable
Unit：RMB
Name Balance in year-end Balance in year-begin
Within 1 year 1,239,791.00 1,490,185.00
Over 1 year 21,437,132.00 30,737,132.00
85
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Total 22,676,923.00 32,227,317.00
（2）Statement on large amount other payable accounts due for over one year
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）Statement on large amount other payable accounts
Items Amount Age Content
Room 760 Cargo Floor （ #HKS 151,345 1-2 years Property deposit
PINNERS-760）
State Development & Investment Co., Ltd 3,000,000 Over 3 years Current account and interest
Jinrongyuan Company 1,100,000 Over 2-3 years Workshop deposit
Shenzhen Union Real estate Group Co.,Ltd 700,734 Over 3 years Current account
Union Development Group 15,104,652 Over 1-3 years Loan and interest
Total 20,056,731
23.Other current liabilities
Unit：RMB
Items Year-end balance Year-Beginning balance
Audit fees 3,770,917.00 1,395,917.00
Securities Management 746.00 746.00
Sewage charges 62,600.00 62,600.00
Land use fees 88,000.00 88,000.00
Total 3,922,263.00 1,547,263.00
Statement of other current liabilities：
24. Long-term borrowing
（1）Long-term loans classifications
Unit：RMB
Items Year-end balance Year-Beginning balance
borrowing by pledge 953,576.00 1,033,936.00
Total 953,576.00 1,033,936.00
Statement on long-term borrowings.
86
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
The borrowing was the installment payment for the bousing in Hongkong bought by thesubsidiary 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 June 30, 2013, Principal amount of HKD 1, 197,132(RMB 953,576).
25.Long-term payable
（1）Top 5 long-term payable
Unit：RMB
Name Term Initial amount Interest rate（%） Interest payable End balance Condition
Assess the value Unlimited
8,488,953.00 8,338,729.00
of assets duration
（2）Details of finance leasing payments in long-term payable
Unit :RMB
End of term Beginning of term
Name
Foreign currency RMB Foreign currency RMB
Total 0.00 0.00 0.00 0.00
Guarantee provided by the 3rd party for the leasing finance is amounted to RMB0.
Statement on long-term payables：
When the Company was reorganized into a joint stock company, it obtained the special approval of People's Bank
of China for vesting the appraisal increment from the revaluation of the assets of Hong Kong Victor Onward in
the original shareholders of the Company before reorganization. Such assets were appraised on January 31, 1992.
increment of around HKD 14,754,000 was generated from the assets appraisal and entered the long-term account
payable. Part of it has been used to set off the bad debts of around HKD 4,285,000 incurred before listing. The
original shareholders of the Company before the reorganization agreed not to require reimbursement of such
increment in cash. It will be used to set off the price at which they will subscribe for shares of the Company in the
future. The increase of long-term accounts payable in the report year was caused by change in exchange rate.
26.Other Non-current liabilities
Unit：RMB
Items Year-end balance Year-beginning balance
ERP Information construction 228,216.00 228,216.00
Technology subsidies 608,576.00 608,576.00
Total 836,792.00 836,792.00
87
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Statement on other non-current liabilities, including asset-related and income-related government subsidy and
closing balances:
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.
27. .Stock capital
Unit：RMB
Increase/decrease this time (+ , - ) Balance
Balance
Issuing of new Transferred year-end
Year-beginning Bonus shares Other Subtotal
share from reserves
Total of capital
169,142,356.00 169,142,356.00
shares
Statement of change in capital shares. Name of CPA and number of verification report shall be provided if capital
increasing or decreasing occurred in the report period; as for shareholding limited companies incorporated for less
than three years, only net assetis is required for the years prior to incorporation; for shareholding limited
companies reformed from limited companies shall provide the capital verification at incorporation.
28. Capital reserves
Unit：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 29,718,829.00 29,718,829.00
Other 10,071,955.00 126,556.00 9,945,399.00
Total 39,790,784.00 126,556.00 39,664,228.00
Statement on capital reserves：
29. Surplus reserve
Unit ：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 26,704,791.00 26,704,791.00
88
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Total 26,704,791.00 26,704,791.00
Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making
up losses, and dividends：
30. Retained profits
Unit：RMB
Extraction or distribution of
Items Amount
the proportion
After adjustments: Retained profits at the period
-116,273,941.00 --
beginning
Add：Net profit belonging to the owner of the
-4,123,606.00 --
parent company
Retained profits at the period end -120,397,547.00 --
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
Statement on retained profit: for companies issued their securities for the first time, if the accumulated profit
before the issuing is shared by the new and existing shareholders as approved by the shareholders’ meeting, shall
be described particularly; if the accumulated profit before the issuing is shared only by existing shareholders as
approved by the shareholders’ meeting, the Company shall provide the details of dividend payable to the existing
shareholders as audited by CPA.
31. Business income, Business cost
（1）Operating income and operating cost
Unit ：RMB
Items Amount of current period Amount of previous period
89
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Income from Business income 4,990,626.00 5,019,787.00
Business cost 2,073,313.00 2,199,834.00
（2）Main business（Industry）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 4,990,626.00 2,073,313.00 5,019,787.00 2,199,834.00
Total 4,990,626.00 2,073,313.00 5,019,787.00 2,199,834.00
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 4,990,626.00 2,073,313.00 5,019,787.00 2,199,834.00
Total 4,990,626.00 2,073,313.00 5,019,787.00 2,199,834.00
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
China 4,119,034.00 1,498,006.00 4,162,475.00 1,630,336.00
Hong Kong 871,592.00 575,307.00 857,312.00 569,498.00
Total 4,990,626.00 2,073,313.00 5,019,787.00 2,199,834.00
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Shenzhen Jinrongyuan 2,890,500.00 57.92%
SCSExpress International Limited 458,126.00 9.18%
90
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Shenzhen Hebainian Investment
300,000.00 6.01%
Development Co., Ltd.
Shenzhen Nanshan Saint Laurent
264,600.00 5.3%
Wedding Photography
Jishunda Motor vehicle driver
72,000.00 1.44%
training Center
Total 3,985,226.00 79.85%
Notes
32. Business tax and subjoin
Unit ：RMB
Items Same period of the Standard
Report period previous year
Business tax 205,952.00 141,785.00 5%
Urban construction tax 14,417.00 9,925.00 7%
Education surcharge 6,178.00 4,254.00 3%
Local Education surcharge 4,119.00 2,835.00 2%
Total 230,666.00 158,799.00 --
Notes
33. Investment income
（1）Investment income
Unit：RMB
Items Amount of current period Amount of previous period
Incomes from disposal of long-term equity
-71,083.00 417,624.00
investment
Investment income from financial assets sales 11,022.00
Total -71,083.00 428,646.00
（2）long-term equity investment incomes confirmed by equity method include:
Unit：RMB
Amount of current period Amount of previous
Name Reason to increase or decrease
period
91
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Hangzhou Bay Company -71,083.00 417,624.00
Total -71,083.00 417,624.00 --
Statement on investment gains, please state whether or not there are material constrains on retrieving of
investment gains.
34. Non-operating income
（1）Non-operating income
Unit：RMB
The amount of
Items Amount of current period Amount of previous period non-operating gains &
lossed
Total income from liquidation of
3,929.00 5,174.00 3,929.00
non-current assets
Including：Income from liquidation of fixed
3,929.00 5,174.00 3,929.00
asset
Other 24,389.00
Total 3,929.00 29,563.00 3,929.00
35. Non-Operation expense
Unit：RMB
The amount of
Amount of current period Amount of previous
Items non-operating gains &
lossed
period
Total Disposal of loss of non-current assets 19,043.00 0.00 19,043.00
Including: Disposal of net loss of fixed assets 19,043.00 19,043.00
Legal cost 2,400,000.00 2,981,415.00 2,400,000.00
Fine expenses 600.00
Total 2,419,043.00 2,982,015.00 2,419,043.00
Notes
36. Calculation of Basic earnings per share and Diluted earnings per share
Items No Current term Same period of last term
Net profit attributable to shareholders 1
-4,123,606 -4,187,136
of parent company
Non-recurring gain/loss attributable 2
-2,415,114 -2,941,430
of the parent company
92
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Net profit attributable to common 3=1-2
share holders of the Company after -1,708,492 -1,245,706
deducting of non-recurring gain/loss
Total shares at the beginning of the 4
169,142,356 169,142,356
year
Additional share capital transferred 5
from public reserve or additional
shares from shares dividend
distribution（Ⅰ）
Additional shares from issuing new 6
shares or debt-converted shares（Ⅱ）
Accumulative months of the 7
additional share commencing from
the next moth till the end of the year
Decreased shares due to repurchase 8
The number of months since the next 9
month of share decreasing to the end
of report term
Amount of shares reduced 10
Number of months in the report term 11
Weighted average of common shares 12=4+5+6×7÷11
169,142,356 169,142,356
issued outside
-8×9÷11-10
Basic earning pershare（Ⅰ） 13=1÷12 -0.02 -0.02
Basic earning pershare（Ⅱ） 14=3÷12 -0.01 -0.01
Diluting potential common share 15
interests recognized as expenses
Transformation fees 16
Income tax rate 17 25% 25%
Amount of shares increased by 18
transforming or exercising of
company bond, subscription
certificate, or share option
Diluted earning per share（Ⅰ） 19=[1+(15-16)×(1-17)]÷(12+18) -0.02 -0.02
Diluted earning per share（Ⅱ） 19=[3+(15-16)×(1-17)]÷(12+18) -0.01 -0.01
37. Other comprehensive income
Unit：RMB
93
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Items Amount of current period Amount of previous period
1.Loss amount produced by sellable financial assets -126,556.00 -80,951.00
Subtotal -126,556.00 -80,951.00
4. Translating difference in foreign currency financial reports -482,695.00 -38,246.00
Subtotal -482,695.00 -38,246.00
Total -609,251.00 -119,197.00
Notes
38. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Unit :RMB
Supplement Information Amount of current period Amount of previous period
-- --
I. Adjusting net profit to cash flow from operating activities
Net profit -4,123,606.00 -4,187,136.00
Depreciation of fixed assets, oil and gas assets and
121,945.00 1,423,030.00
consumable biological assets
Amortization of intangible assets 20,153.00 20,152.00
Loss on disposal of fixed assets, intangible assets and other
15,114.00 -5,174.00
long-term deferred assets
Loss of fair value fluctuation on assets -13,510.00
Financial cost 273,998.00 -47,525.00
Loss on investment 71,083.00 -428,646.00
Decease of operating receivables 1,619,922.00 350,288.00
Increased of operating Payable 3,950,831.00 3,100,318.00
Other -45,808.00
Net cash flows arising from operating activities 1,949,440.00 165,989.00
II. Significant investment and financing activities that
-- --
without cash flows:
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 48,768,467.00 53,666,428.00
94
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Less: Beginning balance of cash 52,227,262.00 53,399,316.00
Net increase of cash and cash equivalents -3,458,795.00 267,112.00
（2）Composition of cash and cash equivalents
Unit ：RMB
Items Amount of current period Amount of previous period
48,768,467.00 52,227,262.00
I. Cash
107,169.00 66,684.00
Of which: Cash in stock
Bank savings could be used at any time 47,992,355.00 51,492,804.00
Other monetary capital could be used at any time 668,943.00 667,774.00
III. Balance of cash and cash equivalents at the period end 48,768,467.00 52,227,262.00
Notes
(VIII) Related parties and related-party transactions
1. Parent company information of the enterprise
The parent The
The parent
company ultimate
Legal company Organizati
Related Registered Registrate of the controlling
Name Type representat Nature of the on Code
parties address d capital Company's party of
ive Company’
shareholdi the
s vote ratio
ng ratio Company
Production
11/F,Union
and sale
Controllin Bulding,
Issue ofclothing
Union g Shennan Dong 1,123,887, Union 19247150
company and textiles, 25.51% 25.51%
Holdings Shareholde Zhong Binggen 712 Group 0
r and real
Road,Shen
estate
zhen
Developin
Union Import &
Limited
Union Actual Bulding,She Dong export Union 19033795
liability 90,606,000 3.36% 3.36%
Group controller
nnan Zhong
Bingen
business Group 7
Company
Road, “processing
95
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Shenzhen with
materials”
and
processing
with
imported
materials
Notes
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
The registered capital of the parent company and its changes
Parent Company Amount at year Amount at year end
beginning Increase in the Decrease in the
current period current period
Union Group 90,606,000 90,606,000
Union Holding 1,123,887,712 1,123,887,712
Shares or equity held by the parent company and changes
Parent Company Held share amount Held share proportion（%）
Union Group Amount at year Amount at year Proportion at year Proportion at year beginning %
end beginning end %
Union Holding 5,681,089 5,821,089 3.36 3.44
43,141,032 43,141,032 25.51 25.51
2.Particulars of the subsidiaries
Unit :RMB
The
The
subsidiaries
Legal subsidiaries Organizatio
Related Registered Registrated of the
Name Type representati Nature of the n Code
parties address capital Company's
ve Company’s
shareholdin
vote ratio
g ratio
HongKong Controlled Limited
2,400,002
Victor subsidiarie Liability Hongkong Trade 100% 100%
（HKD）
Onward s Company
Nanhua Controlled Limited Shenzhen Hu Product 85,494,700 69.44% 69.44% 618836600
96
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Company subsidiaries Liability Yongfeng （HKD）
Company
Shenzhen Limited
Controlled
East Asia Liability Shenzhen Sun Zhiping Trade 3,000,000 51% 51% 799228355
subsidiaries
Company Company
3. Information of Joint venture and Affiliated company
Unit：RMB
Registrated
Legal Held Share Voting
Registrated capital Related Orgabuzatui
Name Type representati Nature proportion( proportion(
address （RMB’00 parties b code
ve %) %)
00）
I.Joint enterprise
II. Affiliated enterprise
Real estate
Exploiters,
Basis
Zhejiang constructio
Limited
Union Dong n 247,476,832 Affiliated
Liability Hanghou 25% 25% 757230553
Hangzhou Binggen Manageme .6 enterprise
Company
Bay nt and
Property
Manageme
nt
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the
Organization code
company
The related parties controlled the same
Shenye Union（HK）Co., Ltd.
Actual controller
The related parties controlled the same
Shenzhen Union Property Group Co., Ltd. 192199105
Actual controller
Notes
97
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
5. Related transactions.
（1）Related leasing
The Company is the lender
Unit：RMB
Rental
Name of the Name of the Category of asset
Starting date Stop date Pricing basis recognized in the
owner tenant for rent
period
The Company is the undertaker
Unit：RMB
Rental
Name of the Name of the Category of asset
Starting date Stop date Pricing basis recognized in the
owner tenant for rent
period
November 1,
Union Group The Company House October 31, 2014 Lease Contract 41,760.00
2012
Notes
In the report year, the Company leased Room 1307 and 1308 of Union Building owned by Union Group. In
November 2012, The term of tenancy is from November 1, 2012 to October 31, 2014. The monthly rent is RMB
6960. The rent was determined according to market price.
6. Payables and receivables of the related party
Listed company related party fund
Unit：RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shenye Union（HK）
Account receivable 299,428.00 299,428.00 299,428.00 299,428.00
Co., Ltd.
The listed company Payables of the related party
Unit ：RMB
Amount at year end Amount at year beginning
Name Related party
Other payable Union Development Group 15,104,652.00 24,748,412.00
98
深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Shenzhen Union Property
Other payable 700,734.00 700,734.00
Group Co., Ltd.
（IX） Subsequent events
1. Liabilities formed from pending lawsuit and mediation and its financial impact
On June 4, 2012, The company has instituted court action against below three companies at Jiangsu Province
Higher People's Court, and asked to terminate the contracts and agreements signed with Nanjing East Asia Textile
Printing & Dyeing Co., Ltd., Nanjing East Asia Investment & Development Group Limited and Hong Kong
Yiuchun Limited, who shall pay RMB47,922,902.92 to the company for the pecuniary loss of implicative
compensation and undertake the costs of litigation. As of June 30, 2013, Jiangsu Higher People's Court did not
give a judgement. Currently it is unable to determine the financial impact。
（X）. Commitment events.
1.Importance commitment events
The external investment contracts and the related financial expenditures which have signed or not yet completely
fulfilled.
By June 30, 2013,The Group still has the major external investments RMB 30 million which have signed but still
not paid, as follows:
Name of investment projects Contractual Prepaid Unpaid investment Expected Remarks
investment investment amount investment
amount amount period
Invest Nanjing East Asia 300 million - 30million Terminatio In lawsuit
Textile Co., Ltd with n
machinery and equipments
2.The big contract which has been signed or is ready to be carried out
By June 30,2013, The Group still has big contract which has been signed but not paid, a total of RMB 1.71
million, as follows:
Name of Contractual Prepaid Unpaid Expected investment Remarks
investment projects investment amount investment investment period
amount amount
Elocation of 855,000 855,000 Termination Termination due to the
production impact of litigation
equipments as a
whole
Except for the events described above, As of June 30, 2013, the Group has no other significant commitment events.
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
2. Information guaranteed at the former period.
Failed to fulfill.
（XI）. Post-balance-sheet events
1. Statement on material post-balance-sheet events
The group has no statement on material post-balance-sheet events.
（XII）. Other Important events
1. Leasing
Type Year-end balance Year-beginning balance
Cost 96,531,452.00 96,920,525
House, Building 96,531,452.00 96,920,525
Accumulated amortization 67,042,648.00 65,879,041
House, Building 67,042,648.00 65,879,041
Impairment provision
House, Building
Book value 29,488,804.00 31,041,484
House, Building 29,488,804.00 31,041,484
2.Items related to measurement of fair value
Unit:RMB
Gains and losses Accumulative
Provision for
Amount at the from change of fair change of fair value Aamount at the end
Items impairment made in
beginning of period value in current accounted for as of period
current period
period rights and interests
Financial assets
3.Trading financial assets 751,542.00 -187,314.00 564,228.00
Total 751,542.00 -187,314.00 564,228.00
Financial liability 0.00 0.00
3.Foreign financial assets and foreign financial liability
Unit:RMB
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Gains and losses Accumulative
Provision for
Amount at the from change of fair change of fair value Amount at the end
Items impairment made in
beginning of period value in current eccounted for as of period
current period
period right and interests
Finanical assets
4.Trading financial assets 751,542.00 -187,314.00 564,228.00
Subtotal of financial
751,542.00 -187,314.00 564,228.00
assets
Financial liability 0.00 0.00
4.Other
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. This investment plan is being discontinued at present.
Up to the present, the project has been delayed for 6 years. The difficulties for joint venture projects have
constantly increased. To solve the problem of idling of equipment, invigorate relevant assets and facilitate the
Company's subsequent development，On June 4, 2012, The company has instituted court action against below
three companies at Jiangsu Province Higher People's Court, and asked to terminate the contracts and agreements
signed with Nanjing East Asia Textile Printing & Dyeing Co., Ltd., Nanjing East Asia Investment & Development
Group Co., Ltd. and Hong Kong Yaojunxing Co., Ltd., who shall pay RMB47,922,902.92 to the company for the
pecuniary loss of implicative compensation and undertake the costs of litigation. As of June 30,2013, Jiangsu
Higher People's Court did not give a judgement.
（XIII）..Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
Unit：RMB
Year-end balance Year-beginning balance
Book Balance Provision for bad debts Book Balance Provision for bad debts
Type
Propo
rtion Proporti Proporti Proporti
Amount % Amount on% Amount on% Amount on%
Account receivable with 3,504,328.00 30.52 3,504,328.00 100% 3,504,328.00 30.52% 3,504,328.00 100%
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
significant specific %
amount that were
provisioned had debt
preparation separately
Receivables provided bad debt provision in groups
Account receivable with
minor individual amount 69.48
7,976,100.00 7,976,100.00 100% 7,976,100.00 69.48% 7,976,100.00 100%
but bad debt provision is %
provided
Total 11,480,428.00 -- 11,480,428.00 -- 11,480,428.00 -- 11,480,428.00 --
Remarks on categories of receivable accounts：
Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □ Not applicable
Unit：RMB
Description of receivable accounts Book balance Bad debt provision Proportion Reason
Carnival Index International Ltd 1,098,820.00 1,098,820.00 100% Aging long
TAI YANG ENTERPRISE CO.,LTD. 1,010,296.00 1,010,296.00 100% Aging long
The company insol
Shengzhong Company 1,395,212.00 1,395,212.00 100% vent, to be cance
led
Total 3,504,328.00 3,504,328.00 -- --
Using age methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
√Applicable □not Applicable
Unit： RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Fly Dragon International 573,677.00 573,677.00 100% Aging long
Grateful Textiles Co.,Ltd 566,801.00 566,801.00 100% Aging long
World Fabrica (Int'l) Ltd 465,241.00 465,241.00 100% Aging long
Shenzhen Fangzhou Aging long
446,352.00 446,352.00 100%
Textile Co., Ltd.
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Ezhou Xiangya Aging long
351,500.00 351,500.00 100%
Garments Co., Ltd.
Tak Shing Buying Office Aging long
333,584.00 333,584.00 100%
Led
Starline Textile CO.Ltd. 332,316.00 332,316.00 100% Aging long
Shenye Union（HK） Aging long
299,428.00 299,428.00 100%
Co.,Ltd.
Panther Fabric Ltd. 295,161.00 295,161.00 100% Aging long
Changshu Zhongjiang Aging long
Garments Import & 270,134.00 270,134.00 100%
Export Co., Ltd.
Victor Onward Aging long
245,621.00 245,621.00 100%
Textile(HK)Co., Ltd.
Nissho Iwai HK Corp Aging long
215,282.00 215,282.00 100%
Ltd.
Unimix Ltd. 192,939.00 192,939.00 100% Aging long
Tai Hing Linings Co Ltd 191,342.00 191,342.00 100% Aging long
Human Changpuan Aging long
185,981.00 185,981.00 100%
Garment
Ningbo Youngor Aging long
Fukurmura Uniforms 172,910.00 172,910.00 100%
Co., Ltd.
Win favour evelopment Aging long
146,636.00 146,636.00 100%
ltd
Speedy Textiles Co 146,538.00 146,538.00 100% Aging long
Other 2,544,657.00 2,544,657.00 100% Aging long
Total 7,976,100.00 7,976,100.00 -- --
（2）The front 5 units’ information of the account receivable
Unit ：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Carnival Index
Non-related parties 1,098,820.00 Over 3 years 9.57%
International Ltd
TAI YANG
Non-related parties 1,010,296.00 Over 3 years 8.8%
ENTERPRISE CO.,LTD.
Shengzhong Company Subsidiary 1,395,212.00 Over 3 years 12.15%
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Fly Dragon International Non-related parties 573,677.00 Over 3 years 5%
Grateful Textiles Co.,Ltd Non-related parties 566,801.00 Over 3 years 4.94%
Total -- 4,644,806.00 -- 40.46%
（3）Account receivable from Related parties
Unit：RMB
Unit name Relation with the company Amount Percentage of account receivable
Shengzhong Company Subsidiary 1,395,212.00 12.15%
Shenzhen East Asia Subsidiary 51,871.00 0.45%
The related parties controlled
Shenye Union（HK）Co., Ltd. 299,428.00 2.61%
the same Actual controller
Total -- 1,746,511.00 15.21%
2. Other receivable
（1）Other receivable
Unit：RMB
Year-end balance Year-beginning
Provision for bad
Book balance Provision for bad debts Book balance
debts
Classification
Propo Propo Propo Propo
Amount rtion( Amount rtion( Amount rtion( Amount rtion(
%) %) %) %)
Other Receivables with
major individual amount and 98.74 98.64
86,596,952.00 3,881,950.00 4.48% 76,596,952.00 3,881,950.00 5.07%
bad debt provision provided % %
individually
Other Receivables provided bad debt provision in groups
Deposit group 159,784.00 0.18% 103,784.00 0.13%
Subtotal of group 159,784.00 0.18% 103,784.00 0.13%
Other Account receivable
with minor individual
950,112.00 1.08% 950,112.00 100% 950,112.00 1.22% 950,112.00 100%
amount but bad debt
provision is provided
Total 87,706,848.00 -- 4,832,062.00 -- 77,650,848.00 -- 4,832,062.00 --
Statement on Other receivable:
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □not Applicable
Unit：RMB
Description of other
Book balance Bad debt provision Proportion Reason
receivable accounts
Victor Onward
59,715,002.00
Textile(HK)Co., Ltd.
Nanhua Company 23,000,000.00
Nanjing East Asia 1,313,410.00 1,313,410.00 100% Aging long
CCB.Guangdong Shunde Aging long
1,080,000.00 1,080,000.00 100%
branch
Changzhou Aging long
Dongfeng Textile
975,000.00 975,000.00 100%
Printing & dyeing
Equipment Co., Ltd.
The company insolv
Shenzhen East Asia 513,540.00 513,540.00 100%
ent, to be canceled
Total 86,596,952.00 3,881,950.00 -- --
Using age methods to provision for bad debts of other account receivable in group：
□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
√Applicable □not Applicable
Unit：RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Victor Onward
694,122.00 694,122.00 100% Aging long
Textile(HK)Co., Ltd.
Shanghai Huayinke
Trade Industry Co., Ltd. 180,000.00 180,000.00 100% Aging long
Shenzhen Environmental
35,000.00 35,000.00 100% Aging long
Management System
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Certification Center
Shenzhen Design
Institute of Ministry of
30,000.00 30,000.00 100% Aging long
Machinery Industry
Shanghai Branch
Other 10,990.00 10,990.00 100% Aging long
Total 950,112.00 950,112.00 -- --
（2）The front 5 units’ information of Other account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Victor Onward Subsidiary
59,715,002.00 Over 3 years 68.08%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 23,000,000.00 Over 3 years 26.22%
Nanjing East Asia Non-Related parties 1,313,410.00 Over 3 years 1.5%
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 1.23%
Branch
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 1.11%
Equipment Co., Ltd.
Total -- 86,083,412.00 -- 98.14%
（3）The accounts receivable from the Related parties
Unit：RMB
Name Relation with the Company Amount Proportion(%)
Victor Onward
Subsidiary 59,715,002.00 68.08%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 23,000,000.00 26.22%
Shenzhen East Asia Subsidiary 513,540.00 0.59%
Total -- 83,228,542.00 94.89%
3. Long –term stocks equity investment
Unit ：RMB
Sharehold Voting Explanati
Accounti Initial ing right on of
Original Ending Current Cash
Name ng investmen change proportio proportio diffidence Devalue
balance Balance devalue bonus
method t cost n in the n in the between
investee investee sharehold
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
ing
proportio
n and
voting
right
proportio
n in
investee
Victor
Onward
Cost 2,411,282 21,214,21 21,214,21
Textile(H 100% 100% 0.00 0.00 0.00
method .00 2.00 2.00
K)Co.,
Ltd.
Nanhua Cost 23,082,83 15,574,74 15,574,74
54.82% 54.82% 0.00 0.00 0.00
Company method 1.00 1.00 1.00
Shenzhen Cost 1,530,000 1,252,900 1,252,900 1,252,900
51% 51% 0.00 0.00
East Asia method .00 .00 .00 .00
27,024,11 38,041,85 38,041,85 1,252,900
Total -- 0.00 -- -- -- 0.00 0.00
3.00 3.00 3.00 .00
Notes
4. Business income and Business cost
（1）Business income
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 908,470.00 741,567.00
Total 908,470.00 741,567.00
Business cost 168,586.00 239,378.00
（2）Main business（Industry）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 908,470.00 168,586.00 741,567.00 239,378.00
Total 908,470.00 168,586.00 741,567.00 239,378.00
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 908,470.00 168,586.00 741,567.00 239,378.00
Total 908,470.00 168,586.00 741,567.00 239,378.00
（4）Total income and the ratio of operating income from top five clients
Unit:RMB
Name Business Income Proportion(%)
Shenzhen Nanshan Saint Laurent Wedding Photography 252,000.00 33.98%
Jishunda Automobile drier training Company 72,000.00 9.71%
Chen Shen 45,000.00 6.07%
Shenzhen Taihe Machine Equipment Co., Ltd. 31,200.00 4.21%
Diweini 19,200.00 2.59%
Total 419,400.00 56.56%
Notes
5. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current period Amount of previous period
Hold the investment income during from available-for-sale
11,022.00
financial assets
Total 0.00 11,022.00
6. Supplement information of Consolidated Flow Statement
Unit：RMB
Items Amount of current
Amount of previous period
period
1. Adjusting net profit to net cash flow in operating activities: -- --
Net profit -3,659,586.00 -4,745,041.00
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Depreciation of fixed assets, oil and gas assets and consumable
26,927.00 168,586.00
biological assets
Amortization of intangible assets 20,153.00 20,152.00
The losses on the disposal of fixed assets, intangible assets and other
4,927.00 -5,174.00
long-term assets
Loss of fair value fluctuation on assets 13,510.00
-770,606.00 -633,443.00
Financial cost
-11,022.00
Loss on investment
Decrease of operating receivable -293,735.00 231,272.00
Increase of operating receivables 5,013,292.00 2,458,441.00
Other 622,625.00
Net cash flows arising from operating activities 341,372.00 -1,880,095.00
II. Significant investment and financing activities that without cash
-- --
flows
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 12,706,881.00 19,654,909.00
Less: Beginning balance of cash equivalents 17,293,509.00 21,483,163.00
Net increase of cash and cash equivalents -4,586,628.00 -1,828,254.00
（XIV）. Supplement information
1. Particulars about current non-recurring gains and loss
Unit:RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-15,114.00
for which assets impairment provision is made)
Other non-operating income and expenditure beside for the above
-2,400,000.00
items
Total -2,415,114.00 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
2.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
Unit:RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS -4,123,606.00 -4,187,136.00 114,119,534.00 118,852,391.00
Items and amount adjusted according to IAS
Switch back the part of Hong
Kong house property
267,910.00 55,329.00 -4,729,270.00 -5,298,751.00
assessment in accordance with
IAS
Pursuant to overseas
-3,855,696.00 -4,131,807.00 109,390,264.00 113,553,640.00
accounting standards
2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the
Accounting standards Outside Mainland China and the Chinese Accounting Standards.
Unit:RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS -4,123,606.00 -4,187,136.00 114,119,534.00 118,852,391.00
Items and amount adjusted according to IAS
Switch back the part of Hong
Kong house property
267,910.00 55,329.00 -4,729,270.00 -5,298,751.00
assessment in accordance with
IAS
Pursuant to overseas
-3,855,696.00 -4,131,807.00 109,390,264.00 113,553,640.00
accounting standards
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
The influence of appreciation through appraisal of workshop and 2 parking spaces in Hong Kong in 1992.
3 Return on net assets and earnings per share
Unit :RMB
Earnings per share（RMB）
Return on net assets .
Profit of the report period
Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the Common stock
-3.53% -0.02 -0.02
shareholders of Company.
Net profit attributable to the Common stock
shareholders of Company after deducting of -1.46% -0.01 -0.01
non-recurring gain/loss.
4. The explanation of abnormal circumstance and reasons of items in major accounting statement.
Items Amount at the Amount in Chaged Remark
period end year-begin （%）
Bills receivable 1,500,000 -100.00% The payment for goods settled by means of
bills in the previous year was recovered in
current period
Payment in advance 15,867 176,443 -91.01% Increase due to uncompleted prepayment of
decoration expenses by Victor Onward Hong
Kong, a subsidiary of the Company, in the
report year.
Interests receivable 38,414 -100.00% Inter-period interest was received in current
period
Other receivable 339,073 260,005 30.41% Increase of deposit accounts receiveable
Financial assets 564,228 751,542 -24.92% Influence of change in market price
Advance collections 7,827,624 2,778,488 181.72% Increase of proceeds from disposal of waste
fixed assets
Other payables 22,676,923 32,227,317 -29.63% Payment of loan principal of RMB 10 million
to Union Group
Other current liabilities 3,922,263 1,547,263 153.50% Provision for professional service fee of RMB
2.40 million
Items Amount at the Amount in Chaged Remark
period end year-begin （%）
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
Business tax and surtax 230,666 158,799 45.26% Actual influence of taxes and levies on house
rent income
Financial expreases 273,998 -47,525 -676.53% Exchange rate influence
Income from change in fair -13,510 -100.00% There were tradable financial assets in
value previous period. There were no such assets in
current period.
Investment income -71,083 428,646 -116.58% Influenced by the change in gains and losses of
affiliated companies
Non-operating income 3,929 29,563 -86.71% Influence of other factors
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深圳中冠纺织印染股份有限公司 2013 半年度报告全文
IX. Documents available for inspection
1.The Semi-Annual report 2013
2. Financial statement of the Company with signature and seal from the person in charge of the Company, person
in charge of the accounting works and person in charge of accounting;
3.Originals text of all documents of the Company as well as manuscript of the announcement that disclosed on
website appointed by CSRC.
4. The articles of Association.
English translation for reference Only Should there be any discrepancy between the two versions, the Chinese
version shall prevail.
The Board of Directors of Shenzhen Victor Onward Textile Industrial Co., Ltd.
August 20, 2013
113
