深圳中冠纺织印染股份有限公司 2014 半年度报告全文
Shenzhen Victor Onward Textile Industrial Co., Ltd.
The Semi-annual Report 2014
August 2014
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 this 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 2014 年半年度报告全文
Table of Contents
2014 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. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
3
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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
Refers
Yuan RMB yuan
to
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
II. Basic Information of the Company
1. Company Information
Victor Onward A, Victor Onward
Stock abbreviation Stock code： 000018、200018
B
Short form of the Stock
after changed (if Victor Onward A, Victor Onward B
applicable)
Stock exchange for
Shenzhen Stock Exchange
listing：
Name in Chinese 深圳中冠纺织印染股份有限公司
Chinese Abbreviation (If
中冠
any)
English name (If any) Shenzhen Victor Onward Textile Industrial Co., Ltd
English abbreviation (If
VICTOR ONWARD
any)
Legal Representative Hu Yongfeng
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Zhang Jinliang Wu Xia
Room 1308, Hualiang Building, Room 1308, Hualiang Building,
Contact address No.2008 Shennan Zhong Road, No.2008 Shennan Zhong Road,
Shenzhen Shenzhen
Tel （755）83668425 （755）83667895
Fax （755）83668427 （755）83668427
E-mail zhangjl@udcgroup.com wux@udcgroup.com
3.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2013 Annual Report.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
（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 2013 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2013.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
III. Summary of Accounting Data and Financial Indicators
1.Summary of accounting /Financial Data
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） 5,077,451.00 4,990,626.00 1.74%
Net profit attributable to the
shareholders of the listed company 738,330.00 -4,123,606.00 -117.90%
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
740,248.00 -1,708,492.00 -143.33%
to the shareholders of listed company
（RMB）
Cash flow generated by business
2,708,214.00 1,949,440.00 38.92%
operation, net（RMB）
Basic earning per share(RMB/Share) 0.004 -0.02 -120.00%
Diluted gains per
0.004 -0.02 -120.00%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.58% -3.53% 4.11%
As at the end of the As at the end of last
YoY+/-（%）
reporting period year
Gross assets (RMB) 195,275,060.00 170,502,789.00 14.53%
Net assets attributable to
127,320,991.00 126,320,072.00 0.79%
shareholders of the Company（RMB）
2.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Gain/loss from disposal of non-current assets, including the part
-1,918.00
offset with the provision for impairment of assets
Total -1,918.00 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines 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.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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. 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.The controlling shareholders and management of the
company attached great importance to the company’s continued operational problems, intended to
adopt a variety of ways, including selling the assets and business of the company or its subsidiaries,
joint veture and expand and existing business, in order to improve the company’s assets quality,
profitability and the capacity for sustainable development.
In reporting period, on June 16, 2014, the company began planning a major asset reorganization, the company
and related parties are actively promoting the work.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income
5,077,451.00 4,990,626.00 1.74%
Reduction of rental pr
Operating cost 1,446,029.00 2,073,313.00 -30.26%
operty depreciation
Administrative
3,550,910.00 4,050,058.00 -12.32% Reduced expenses
expenses
Financial expenses -58,719.00 273,998.00 -121.43% Interest on debt reduced
Net cash flows from 2,708,214.00 1,949,440.00 38.92% Rent increase
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
operating activities
Disposal of machinery
Net cash flows from
-64,702.00 5,024,937.00 -101.29% and equipment of last
investing activities
year
Net cash flows from Payment of loan
-6,291,275.00 -10,000,000.00 -37.09%
financing activities principal to Union Group
Net increase in cash
-3,253,848.00 -3,458,795.00 -5.93%
and cash equivalents
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
Implementation of business plans disclosed in previous periods in this period.
Not applicable
III. Business composition
In RMB
Increase/decrease
Increase/decrease Increase/decrease
of rincipal
of reverue in the of gross profit
Gross profit business cost over
Turnover Operation cost same period of rate over the same
rate(%) the same period
the previous period of the
of previous year
year(%) previous year (%)
(%)
Classification of Industry
Leasing Industry 5,077,451.00 1,446,029.00 71.52% 1.74% -30.26% 13.06%
Classification of products
Lease 5,077,451.00 1,446,029.00 71.52% 1.74% -30.26% 13.06%
Classification of Area
China 4,334,045.00 1,225,313.76 71.73% 5.22% -18.20% 8.10%
Hong Kong 743,406.00 220,715.00 70.31% -14.71% -61.64% 36.32%
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
IV. Analysis on investment Status
1. Foreign Equity investment
（1）External investment
√ Applicable □ Not applicable
External investment
Investment amount (January-June Investment Amount (January-June
Change rate（%）
2014)(RMB) 2013)(RMB)
0.00 0.00 0.00%
Particulars of investees
Name Principal business Proportion in the investees’ equity（%）
Zhejiang Union Hangzhou Bay
Real estate 25.00%
Chuangye Co., Ltd.
2.Information of trust management, derivative investment and entrusted loan
（1）Trust management
√ Applicable □ Not applicable
In RMB
Impairme
Principal Actual
Related nt
Title of Relations Type of Amount Expired Mean of retrieved Predicted gain/loss
transactio Started on provision
trustee hip product entrusted on reward this income of the
n or not provided
period period
(If any)
Zhongyin
Not Stationary 4.90%
Bank of April 17, October
Related No AMZYP 100 fixed 2.36
China 2014 13, 2014
party WHQ141 income
66
Zhongyin
Not Stationary 4.80%
Bank of April 17, July 14,
Related No AMZYP 100 fixed 1.16
China 2014 2014
party WHQ141 income
65
Zhongyin
Not 4.70%
Bank of Jizhitong April 18, June 6,
Related No 100 fixed 100 0.6
China AMZYJZ 2014 2014
party income
T-LPA140
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
94
Zhongyin
Not Jizhitong
Bank of April 18, August 8, 5% fixed
Related No AMZYJZ 150 2.26
China 2014 2014 income
party T-LPA140
96
Zhongyin
Not Stationary 4.90%
Bank of June 9, Septembe
Related No AMZYP 150 fixed 1.83
China 2014 r 9, 2014
party WHQ142 income
41
Total 600 -- -- -- 100 0 7.61 0.6
Resource of capital trusted Self fnds
Accumulated principal and gains overdue 0
Date of announcement made by the board
about approval of trusted funancial
service
Date of announcement made by the
Shareholders’ Meeting about approvale of
trusted financial service
3. Analysis to main subsidiaries and shareholding companies
√ Applicable □ Not applicable
Particulars about main subsidiaries and shareholding companies
In 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 2,400,002 123,836,44 52,262,552. 1,022,102
Subsidiary 743,406.00 1,022,102.00
Onward industry trade （HKD） 5.00 00 .00
Co.Ltd
Textile
Nanhua Textile 85,494,700 23,908,176. -16,787,251 3,292,600.0 474,187.0
Subsidiary Printing and 472,269.00
Company industry （HKD） 00 .00 0 0
dyeing
Zhejiang
Union Real estate
Shareholding Real estate 247,476,83 1,385,349,9 309,092,00 30,638,800. 3,424,787
Hangzhou Develop 3,428,626.00
companies Industry 2.6 51.00 0.00 00 .00
Bay ment
Chuangye
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Co., Ltd.
V. Prediction of business performance for Jan-Sept 2014.
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 : Make up the deficits
Type of date filled for the prediction:Interval figures
Same period of
Year beginning to end of next
the previous Increase or decrease%
report period
year
Estimated amount of
accumulative net 0 -- 100 -53 -- -288.68% -- -100.00%
profit(RMB’0000)
Basic earnings per shares
0 -- 0.006 -0.003 -- -300.00% -- -100.00%
(Yuan/share)
Due to the effect of the performance of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounte
Notes to forenotice of
d for on equity basis, the accumulative net profit for the period from January to September 2014 is
earnings
estimated to be profitable and about RMB 0 to RMB 1 million.
VI. Explanation by the Board of Directors and the Supervisory Committee about the ― non-standard audit report‖ issued by the CPAs
firm for the reporting period.
□ Applicable √ Not applicable
VII. Explanation by the Board of Directors about the ― non-standard audit report ― for lastyear.
√ Applicable □ Not applicable
1．Basic information
Da Hua Certified Public Accountants(Special General Partnership) issued unqualified auditor's report with
paragraph of emphasized matters for the Company's financial statements for 2013 Basic information of
emphasized matters: Since March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production
and dismissed most of workers. And most subsidiaries of the company had stopped production and it maintained
daily operation by house leasing., Shenzhen Victor Onward Textile Industrial Co., Ltd. had disclosed its
improvement measures in Note 11of Financial Statement,but its sustainable operation ability is still uncertain.
2. Basic opinions of certified public accountants on such matter:
Da Hua Certified Public Accountants(Special General Partnership) accepted entrustment, completed the audit
of the financial statements of the Company for 2013 and issued unqualified auditor's report with paragraph of
emphasized matters for the Company's financial statements for 2013. 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:
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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
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.
3.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.
4. Extent of influence of this matter on the Company:
This event greatly impacted the production & operation activities and sustainable development of company.
5.The concrete measures of eliminating this matter and its influence
The controlling shareholders and management of the company attached great importance to the company's
continued operational problems, intended to adopt a variety of ways, including selling the assets and business of
the company or its subsidiaries, joint venture and expand an existing business, in order to improve the company's
assets quality, profitability and thecapacity for sustainable development.
VIII. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
period.
□ Applicable √ Not applicable
Previous year’s profit distribution plan was no profit distribution and shares converted from capital reserve either
IX. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
into share capital.
IX. Statement of such activities as reception, research, communication, interview in the reporting period
√ Applicable □ Not applicable
Discussion topics and
Reception time Reception place Way of reception Types of visitors Visitors received
provision of materials
BOD office of the Enquiry the company
April 3, 2014 By phone Individual Investor
Company situation
BOD office of the Inquire the reasons for the s
June 9, 2014 By phone Individual Investor
Company uspension of company
BOD office of the Inquire the corporate
June 30, 2014 By phone Individual Investor
Company restructuring matters
V. Important Events
1.Governance of the Company
There is no difference between the actual corporate governance and the requirements of Company Law and the r
elevant provisions of China Securities Regulatory Commission.
II. Major lawsuits and Arbitration affairs
√ Applicable□ Not applicable
Basic Amount Whether Progress
Judgment
information of involved comes to of Trial results Disclosure Index of
enforcement
lawsuits(Arbitra (RMB’0000 accrual lawsuits(a and influence date disclosure
situation
tion) ) liability or not rbitration)
On June 4, 2012,
The company has
Announceme
instituted court
nt No.
action against
2012-0614)
below three
The case Securities
companies at
hasn’t Times , Hong
Jiangsu Province 4,792 No June 16, 2012
yet been Kong
Higher People's
tried Commercial
Court, and asked
Daily and
to terminate the
www.cninfo.
contracts and
com.cn
agreements signed
with Nanjing East
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Asia Textile
Printing & Dyeing
Co., Ltd., Nanjing
East Asia
Investment &
Development
Group Co., Ltd.
and Hong Kong
Yaojunxing Co.,
Ltd., who shall pay
RMB47,922,902.9
2 to the company
for the pecuniary
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
June 14, 2012. The
Defendant Nanjing
East Asia Textile
Printing and
Dyeing Co., Ltd.
made objection to
the jurisdiction of
this case during the
period of defence
submission. The
court formed a
collegial bench
and conducted
examination
according to law.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
On December 24,
2013, Jiangsu
Higher People's
Court issued Civil
Ruling Paper to
reject the objection
made by Nanjing
East Asia Textile
Printing and
Dyeing Co., Ltd.
about the
jurisdiction.
((2013) SSWXCZ
No. 0001 Civil
Ruling Paper of
Jiangsu Higher
People's Court
Civil Ruling
Paper)
III.Query form media
□ Applicable√ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
V. Transaction in Assets
1. Purchase of assets
□ Applicable √ Not applicable
There is no purchase of assets in the Company during the reporting period.
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
□ Applicable √ Not applicable
There is no business combination in the Company during the reporting period.
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
There is no any related party transaction concerning daily operation of the Company of the reporting period.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There is no any credit and liability with related parties of the Company of the reporting period.
5. Other significant related-party transactions
□ Applicable √ Not applicable
The Company was not Other significant related-party transactions during the reporting period.
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period..
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was not involved in ant lease of the Company in the reporting period.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
2. Guarantees provided by the company
□ Applicable √ Not applicable
There was not involved in any Guarantees provided by the company in the reporting period.
(1) Particulars about illegal external guarantee
□ Applicable √ Not applicable
There was no particular about illegal external guarantee of the Company in the reporting period.
3. Other significant contracts
□ Applicable √ Not applicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
reporting period or such commitments carried down into the reporting period
√ Applicable □Not applicable
Commitment Time of making Peiod of
Commitment Contents Fulfillment
maker commitment commitment
Committed
when the
restricted-for-
sale shares
from the
shares
restructuring
were listed for
circulation in
the market: i.
if they plan to
Union Holdings Under
Commitment on share reform sell the shares June 3, 2009 In effect
Co., Ltd Fulfillment
through the
securities
exchange
system in the
future, and the
decrease of
the shares
they hold
reaches 5%
within 6
months after
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
the first
decrease, they
will disclose
an
announcemen
t indicating
the sale
through the
company
within two
trading days
before the
first decrease;
ii. They shall
strictly
observe the
―Guidelines
on Transfer of
Restricted-for
-sale Original
Shares of
Listed
Companies‖ a
nd the
provisions of
the relevant
business
principles of
Shenzhen
Stock
Exchange.
Commitment in the acquisition
report or the report on equity Not Applicable
changes
Commitment made upon the assets
Not Applicable
replacement
Commitments made upon issuance Not Applicable
Other commitments made to minority
Not Applicable
shareholders
Executed timely or not? Yes
Detailed person for failing to execute and
Not Applicable
the next plan( If any)
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
XII. Punishment and Rectification
□ Applicable √ Not applicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
√ Applicable □ Not applicable
1.Announcement on lawsuits.of Shenzhen Victor Onward Textile Industrial Co., Ltd. Announcement
No.:2012-0614，Announcement Date: June 16, 2012, Securities Times,Hong Kong Commercial Daily and
www.cninfo.com.cn.
2.The company’s annual financial report for 2013 was audited by Dahua Accounting Firm (special general
partnership). The audit report showed that the company’s net profits in 2013 was RMB7,849,904, the net profits
which belong to the shareholders of quoted company was RMB8,214,810. According to the related regulations of
―Listing Rules of The Shenzhen Stock Exchange‖, the situation in which the company’s A, B stocks would be
warned to retrieve the market has been removed, and there is no situation of other risk warnings. With the
approval of Shenzhen Stock Exchange, from March 13, 2014, the risk warning of retrieving from the market and
other risk warnings for the company’s stock exchange would be removed. The matters mentioned above were
announced in Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn. on March 12, 2014, the
Announcement No.: 2014-0659.
3. ―The Announcement on a part of Shenzhen Victor Onward Textile Industrial Co., Ltd. Factory Buildings
Collected by the Government‖, the Management Committee of Shenzhen Dapeng District released ―The Decision
Announcement on the Management Committee of Shenzhen Dapeng New District Collecting Houses‖ which says,
the committee decided to collect the related housing estates located in Kuixin community for the need to build a
people’s hospital in Dapeng new district. The housing estates which would be collected this time include
Kuichong Company’s part of the buildings which haven’t got estate right certificate, and the area of these
buildings is 18,000 square meters. The matters mentioned above were announced in Securities Times,Hong Kong
Commercial Daily and www.cninfo.com.cn. on June 24, 2014, the Announcement No.: 2014-0673.
4.During the period of report, On June 16, 2014, the company started planning the reorganization of the major
assets. At present the company and the other parties are promoting all the work actively. For relevant matters,
please refer to ―The Announcement on the Reorganization and Suspension of Major Assets in Shenzhen Victor
Onward Textile Industrial Co., Ltd ‖, ―The Announcement on the Progress of Major Assets’ Reorganization in
Shenzhen Victor Onward Textile Industrial Co., Ltd ‖ and ―The Announcement on the Application for Continuous
Suspension of Major Assets after the Expiration of Last Suspension in Shenzhen Victor Onward Textile Industrial
Co., Ltd‖, which were released in Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn on
June 16 2014, June 23,2014, June 30,2014, July 7,2014, July 14,2014, July 21,2014, July 28,2014, August 4,2014 ,
21
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
August 11 ,2014 and August 15,2014.
22
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
VI. Change of share capital and shareholding of Principal Shareholders
1.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share Bonus
of common Other Subtotal Quantity Proportion
allotment shares
reserve fund
I. Share with
conditional 0 0.00% 0 0 0 0 0 0 0.00%
subscription
1.State-owned
0 0.00% 0 0 0 0 0 0 0.00%
shares
2..Staee-owned
0 0.00% 0 0 0 0 0 0 0.00%
legal person shares
3.Other domestic
0 0.00% 0 0 0 0 0 0 0.00%
shares
Of which：
Domestic legal 0 0.00% 0 0 0 0 0 0 0.00%
person shares
Domestic natural
0 0.00% 0 0 0 0 0 0 0.00%
person shares
4.Share held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign investors
Of which：Foreign
0 0.00% 0 0 0 0 0 0 0.00%
legal person shares
Foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person shares
II. Shares with
unconditional 169,142,356 100.00% 0 0 0 0 0 169,142,356 100.00%
subscription
1.Common shares
99,720,453 58.96% 0 0 0 0 0 99,720,453 58.96%
in RMB
2.Foreign shares in
69,421,903 41.04% 0 0 0 0 0 69,421,903 41.04%
domestic market
3.Foregin shares in 0 0.00% 0 0 0 0 0 0 0.00%
23
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
overseas market
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital
169,142,356 100.00% 0 0 0 0 0 169,142,356 100.00%
shares
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
II. Shareholders and actual controlling shareholder
In Shares
Total number of preferred
shareholders that had restored
Total number of common
the
shareholders at the end of the 9,948 0
voting right at the end of the
reporting period
reporting period (if any) (note
8)
Shareholding of shareholders holding more than 5% shares
Amount Number os share
Amount
Changes of pledged/frozen
Proportion of Number of of
Nuture of in un-restri
Shareholders shares held shares held at restricte
shareholder reportin cted
（%） period -end d shares State of share Amount
g period shares
held
held
Domestic Non-
Union Holdings 43,141,
State-owned legal 25.51% 43,141,032 0 0
Co., Ltd. 032
person
STYLE-SUCCES 24,466,
Foreign legal person 14.46% 24,466,029 0 0
S LIMITED 029
24
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Rich Crown
6,114,55
Investment Co., Foreign legal person 3.62% 6,114,556 0 0
6
Ltd.
Union Domestic Non-
5,681,0
Development State-owned legal 3.36% 5,681,089 0 0
89
Group Co., Ltd. person
Liuzhou Jiali
Domestic Non- legal
Real estate 4,890,0
person State-owned 2.89% 4,890,000 0 0
Development 00
legal person
Co., ltd.
Domestic Natural 2,070,6
Zeng Ying 1.22% 2,070,600 0 0
person 00
Shenzhen Textile
State-owned 1,722,7
(Group)Holdings 1.02% 1,722,794 0 0
Legal person 94
Ltd
Liuzhou
Domestic Non-
Ruiheng 1,720,1
State-owned legal 1.02% 1,720,100 0 0
Mechatronics 00
person
Co., Ltd.
Domestic Natural
Jiang Jiayuan 0.58% 978,057 0 0 978,057
person
KGI ASIA
Foreign legal person 0.55% 927,450 0 0 927,450
LIMITED
Strategy investors or general
legal person becomes top 10
N/A
shareholders due to rights issued
(if applicable)See Notes 3）
The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
Explanation on associated relationship
Holdings Ltd.and third shareholder Rich Crown Investment Co., Ltd.. Is Union
among the aforesaid shareholders
Development Group Ltd.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the Share type
Name of the shareholder
end of the reporting period Share type Quantity
RMB Common
Union Holdings Co., Ltd. 43,141,032 43,141,032
shares
Foreign shares
placed in
STYLE-SUCCESS LIMITED 24,466,029 24,466,029
domestic
exchange
Rich Crown Investment Co., Ltd. 6,114,556 Foreign shares 6,114,556
25
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
placed in
domestic
exchange
RMB Common
Union Development Group Co., Ltd. 5,681,089 5,681,089
shares
Liuzhou Jiali Real estate Development RMB Common
4,890,000 4,890,000
Co., ltd. shares
Foreign shares
placed in
Zeng Ying 2,070,600 2,070,600
domestic
exchange
RMB Common
Shenzhen Textile (Group)Holdings Ltd 1,722,794 1,722,794
shares
Liuzhou Ruiheng Mechatronics Co., RMB Common
1,720,100 1,720,100
Ltd. shares
RMB Common
Jiang Jiayuan 978,057 978,057
shares
Foreign shares
placed in
KGI ASIA LIMITED 927,450 927,450
domestic
exchange
Explanation on associated relationship
or consistent action among the top 10
shareholders of non-restricted The controlling shareholder of the above-mentioned largest shareholder Shenzhen Union
negotiable shares and that between the Holdings Ltd.and third shareholder Rich Crown Investment Co., Ltd.. Is Union
top 10 shareholders of non-restricted Development Group Ltd.
negotiable shares and top 10
shareholders
Among the shareholders above, Liuzhou Jiali Real estate Development Co., ltd. holds
2,668,900 shares of the Company through stock account with credit transaction and
Notes to the shareholders involved in
guarantee of Guohai Securities Co., Ltd. It holds 2, 221,100 shares through ordinary
financing securities (if any)(See Notes
stock account. Liuzhou Ruiheng Mechatronics Co., Ltd. holds 1,720,100 shares of the
4)
Company through stock account with credit transaction and guarantee of Guohai
Securities Co., Ltd.
Did any shareholder of the Company carry out an agreed buy-back in the reorting period?
□ Yes √ No
Shareholders of the Company had not carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
26
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by the
shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting
period proposed or implemented by the shareholders and act-in-concert persons.
27
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Section VII. Situation of the Preferred Shares
I.Situation of preferred stock issuance and listing during the reporting period
□ Applicable √ Not Applicable
II.Situation of number of preference shareholders and shareholding
□ Applicable √ Not Applicable
III.Situation of repurchase or conversion of preferred shares
1.situation of repurchase of preferred shares
□ Applicable √ Not Applicable
2.situation of conversion of preferred shares
□ Applicable √ Not Applicable
IV.Situation of restoration and usage of voting preference shares
□ Applicable √ Not Applicable
V.Accounting policies and reasons adopted by preferred shares
□ Applicable √ Not Applicable
28
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
VIII. 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 2013
annual report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not Applicable
Names Titles Types Date Causes
Mrs. Chen Jinmei resigned for personal reasons to the
Independent Board. The application will take effect after the election
Chen Jinmei Dismissal January 21, 2014
director of new independent directors to fill the vacancy in the
Company Shareholders' Meeting.
29
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
IX. 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.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 90,249,062.00 63,502,910.00
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 1,500,000.00
Account receivable
Prepayments 13,230.00 25,192.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 79,340.00
Dividend receivable
Other account receivable 54,318.00 311,279.00
Repurchasing of financial assets
Inventories
Non-current asset due in 1 year
Other current asset
30
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total of current assets 90,316,610.00 65,418,721.00
Non-current assets：
Loans and payment on other’s
behalf disbursed
Disposable financial asset 604,282.00 582,942.00
Expired investment in possess
Long-term receivable
Long term share equity
68,230,192.00 66,931,685.00
investment
Property investment 22,195,871.00 23,458,153.00
Fixed assets 7,028,175.00 7,191,205.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,800,306.00 1,820,459.00
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 104,958,450.00 105,084,068.00
Total of assets 195,275,060.00 170,502,789.00
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 3,199,529.00 3,186,939.00
Advance payment 1,076,979.00 1,076,531.00
31
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Selling of repurchased financial
assets
Fees and commissions receivable
Employees’ wage payable 1,021,045.00 1,109,352.00
Tax payable 4,209,279.00 4,250,191.00
Interest payable
Dividend payable 1,215,946.00 1,215,946.00
Other account payable 46,781,726.00 22,663,345.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability 1,322,263.00 1,547,263.00
Total of current liability 58,826,767.00 35,049,567.00
Non-current liabilities：
Long-term loan 1,050,038.00 1,101,349.00
Bond payable
Long-term payable 8,309,417.00 8,230,694.00
Special payable
Expected liabilities
Differed income tax liability 669,475.00 702,735.00
Other non-current liabilities 836,792.00 836,792.00
Total of non-current liabilities 10,865,722.00 10,871,570.00
Total of liability 69,692,489.00 45,921,137.00
Owners’ equity
Share capital 169,142,356.00 169,142,356.00
Capital reserves 39,660,812.00 39,645,048.00
Less：Shares in stock
Special reserves
Surplus reserves 26,704,791.00 26,704,791.00
Common risk provision
Undistributed profit -107,320,801.00 -108,059,131.00
Different of foreign currency
-866,167.00 -1,112,992.00
translation
32
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total of owner’s equity belong to
127,320,991.00 126,320,072.00
the parent company
Minority shareholders’ equity -1,738,420.00 -1,738,420.00
Total of owners’ equity 125,582,571.00 124,581,652.00
Total of liabilities and owners’
195,275,060.00 170,502,789.00
equity
Legal representative ：Hu Yongfeng
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.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 40,923,537.00 10,557,501.00
Trading financial assets
Bill receivable 1,500,000.00
Account receivable
Prepayments
Interest receivable
Dividend receivable
Other account receivable 81,520,540.00 80,967,376.00
Inventories
Non-current asset due in 1 year
Other current asset
Total of current assets 122,444,077.00 93,024,877.00
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity
36,788,953.00 36,788,953.00
investment
33
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Property investment 4,554,989.00 4,723,575.00
Fixed assets 4,384,712.00 4,384,712.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,800,306.00 1,820,459.00
R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 47,528,960.00 47,717,699.00
Total of assets 169,973,037.00 140,742,576.00
Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable 113,344.00 113,344.00
Advance payment 302,540.00 302,540.00
Employees’ wage payable 602,181.00 677,181.00
Tax payable 719,773.00 767,076.00
Interest payable
Dividend payable
Other account payable 31,254,614.00 1,158,902.00
Non-current liability due in 1 year
Other current liability 1,322,263.00 1,547,263.00
Total of current liability 34,314,715.00 4,566,306.00
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
34
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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
Total of liability 39,331,645.00 9,583,236.00
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 -92,018,615.00 -91,500,667.00
Different of foreign currency
-4,398,234.00 -4,398,234.00
translation
Total of owners’ equity 130,641,392.00 131,159,340.00
Total of liabilities and owners’
169,973,037.00 140,742,576.00
equity
Legal representative ：Hu Yongfeng
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.
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 5,077,451.00 4,990,626.00
Incl：Business income 5,077,451.00 4,990,626.00
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 5,194,360.00 6,628,035.00
35
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Incl：Business cost 1,446,029.00 2,073,313.00
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 256,140.00 230,666.00
Sales expense
Administrative expense 3,550,910.00 4,050,058.00
Financial expenses -58,719.00 273,998.00
Asset impairment loss
Add：Gains from change of fir
value （―-‖for loss）
Investment gain（―-‖for loss） 857,157.00 -71,083.00
Incl: investment gains from
857,157.00 -71,083.00
affiliates
Gains from currency exchange
（―-‖for loss）
III. Operational profit（―-‖for loss 740,248.00 -1,708,492.00
Add：Non-business income 3,929.00
Less：Non business expenses 1,918.00 2,419,043.00
Incl ： Loss from disposal of
1,918.00 19,043.00
non-current assets
IV.Total profit(―-‖for loss) 738,330.00 -4,123,606.00
Less：Income tax expenses
V. Net profit（―-‖for net loss） 738,330.00 -4,123,606.00
Including: Net profit realized by
the entity taken over before the
takeover
Net profit attributable to the
738,330.00 -4,123,606.00
owners of parent company
Minority shareholders’ equity
VI. Earnings per share： -- --
（I）Basic earnings per share 0.004 -0.02
36
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
(II)Diluted earnings per share 0.004 -0.02
VII. Other comprehensive income 262,589.00 -609,251.00
VIII. Total comprehensive income 1,000,919.00 -4,732,857.00
Total comprehensive income
attributable to the owner of the 1,000,919.00 -4,732,857.00
parent company
Total comprehensive income
attributable minority shareholders
Legal representative ：Hu Yongfeng
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.
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 1,041,445.00 908,470.00
Less：Business cost 168,586.00 168,586.00
Business tax and surcharge 71,755.00 76,269.00
Sales expense
Administrative expense 2,180,252.00 2,688,880.00
Financial expenses -861,200.00 -770,606.00
Asset impairment loss
Add：Gains from change of for
value （―-‖for loss）
Investment gain（―-‖for loss）
Incl: investment gains from
affiliates
II. Operational profit（―-‖for loss） -517,948.00 -1,254,659.00
Add：Non-business income 2,000.00
Less：Non- business expenses 2,406,927.00
Incl：Loss from disposal of
non-current assets
III.Total profit(―-‖for loss) -517,948.00 -3,659,586.00
37
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Less：Income tax expenses
IV. Net profit（―-‖for net loss） -517,948.00 -3,659,586.00
V. Earnings per share： -- --
（I）Basic earnings per share
(II)Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income -517,948.00 -3,659,586.00
Legal representative ：Hu Yongfeng
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.
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
6,501,169.00 6,412,358.00
or 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,
38
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
processing fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax returned
Other cash received from business
1,117,687.00 598,048.00
operation
Sub-total of cash inflow 7,618,856.00 7,010,406.00
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
1,379,093.00 1,414,058.00
staffs
Taxes paid 1,094,357.00 1,058,641.00
Other cash paid for business
2,437,192.00 2,588,267.00
activities
Sub-total of cash outflow from
4,910,642.00 5,060,966.00
business activities
Cash flow generated by business
2,708,214.00 1,949,440.00
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment gains
Net cash retrieved from disposal
of fixed assets, intangible assets, 5,087,000.00
and other long-term assets
Net cash received from disposal
39
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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
investment activities
Cash paid for construction of
fixed assets, intangible assets and 64,702.00 62,063.00
other 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
Sub-total of cash outflow due to
64,702.00 62,063.00
investment activities
Net cash flow generated by
-64,702.00 5,024,937.00
investment
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 6,291,275.00 10,000,000.00
Cash paid as dividend, profit, or
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
40
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Other cash paid for financing
activities
Sub-total of cash outflow due to
6,291,275.00 10,000,000.00
financing activities
Net cash flow generated by
-6,291,275.00 -10,000,000.00
financing
IV. Influence of exchange rate
alternation on cash and cash 393,915.00 -433,172.00
equivalents
V.Net increase of cash and cash
-3,253,848.00 -3,458,795.00
equivalents
Add: balance of cash and cash
equivalents at the beginning of 63,502,910.00 52,227,262.00
term
VI.Balance of cash and cash
60,249,062.00 48,768,467.00
equivalents at the end of term
Legal representative ：Hu Yongfeng
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.
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
2,465,163.00 2,408,470.00
or rending of services
Tax returned
Other cash received from business
875,492.00 1,009,229.00
operation
Sub-total of cash inflow 3,340,655.00 3,417,699.00
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for
804,933.00 990,236.00
staffs
41
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Taxes paid 511,942.00 466,148.00
Other cash paid for business
1,657,744.00 1,619,943.00
activities
Sub-total of cash outflow from
2,974,619.00 3,076,327.00
business activities
Cash flow generated by business
366,036.00 341,372.00
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment gains
Net cash retrieved from disposal
of fixed assets, intangible assets, 5,072,000.00
and other 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
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
Other cash paid for investment
activities
Sub-total of cash outflow due to
investment activities
Net cash flow generated by
5,072,000.00
investment
III.Cash flow generated by
financing
Cash received from absorbing
investment
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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
-10,000,000.00
financing
IV. Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash
366,036.00 -4,586,628.00
equivalents
Add: balance of cash and cash
equivalents at the beginning of 10,557,501.00 17,293,509.00
term
VI.Balance of cash and cash
10,923,537.00 12,706,881.00
equivalents at the end of term
Legal representative ：Hu Yongfeng
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
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Minor Total of
Iterm
Share Capital Less: Special Surplu Comm Attribu sharehol owners’
Other
Capital reserve Shares ized s on risk table ders’ equity
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
s in reserve reserve provisi profit equity
stock s on
169,142 39,645,0 26,704, -108,05 -1,112,9 -1,738,42 124,581,65
I.Balance at the end of last year
,356.00 48.00 791.00 9,131.00 92.00 0.00 2.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142 39,645,0 26,704, -108,05 -1,112,9 -1,738,42 124,581,65
current year ,356.00 48.00 791.00 9,131.00 92.00 0.00 2.00
15,764.0 738,330. 246,825. 1,000,919.
III.Changed in the current year
0 00 00 00
738,330.
（I） Net profit 738,330.00
00
15,764.0 246,825.
（II）Other misc.income 262,589.00
0 00
15,764.0 738,330. 246,825. 1,000,919.
Total of (I) and (II)
0 00 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
44
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 39,660,8 26,704, -107,32 -866,16 -1,738,42 125,582,57
term ,356.00 12.00 791.00 0,801.00 7.00 0.00 1.00
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Minor
Items Less: Surplu Comm Total of
Capital Special Attribu sharehol
Share Shares s on risk owners’
reserve ized table Other ders’
Capital in reserve provisi equity
s reserve profit equity
stock s on
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：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 39,790,7 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
\ III.Changed in the current -145,73 8,214,81 -601,39 -364,906. 7,102,775.
year 6.00 0.00 3.00 00 00
8,214,81 -364,906. 7,849,904.
（I） Net profit
0.00 00 00
-145,73 -601,39 -747,129.0
（II）Other misc.income
6.00 3.00 0
-145,73 8,214,81 -601,39 -364,906. 7,102,775.
Total of (I) and (II)
6.00 0.00 3.00 00 00
(III) Investment or decreasing
of capital by owners
1. Capital inputted by owners
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 39,645,0 26,704, -108,05 -1,112,9 -1,738,42 124,581,65
term ,356.00 48.00 791.00 9,131.00 92.00 0.00 2.00
Legal representative ：Hu Yongfeng
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
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
In RMB
Items Amount in this period
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners’
Capital reserves reserves ble profit
stock reserves provision equity
169,142,35 31,606,598 26,309,287 -95,898,90 131,159,34
I.Balance at the end of last year
6.00 .00 .00 1.00 0.00
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 -95,898,90 131,159,34
current year 6.00 .00 .00 1.00 0.00
-517,948.0 -517,948.0
III.Changed in the current year
0 0
-517,948.0 -517,948.0
（I） Net profit
0 0
（II）Other misc.income
-517,948.0 -517,948.0
Subtotal of (I) and (II)
0 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
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 -96,416,84 130,641,39
term 6.00 .00 .00 9.00 2.00
Amount in last year
In RMB
Amount in last year
Items
Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners’
Capital reserves reserves ble profit
stock reserve 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
-2,537,404. -2,537,404.
III.Changed in the current year
00 00
-2,537,404. -2,537,404.
（I） Net profit
00 00
（II）Other misc.income
-2,537,404. -2,537,404.
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
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 -95,898,90 131,159,34
term 6.00 .00 .00 1.00 0.00
Legal representative ：Hu Yongfeng
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzheng
III.Basic Information of the Company
1. History
Shenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the Company"), grew out of the
Xingnan Printing Factory Co., Ltd, founded in 1980, was the first wholly foreign-owned enterprise in Shenzhen.
In April 1984, Xingnan Printing Factory Co., Ltd was changed into foreign joint venture, and was renamed
Shenzhen Victor Onward Textile Industrial Co., Ltd. . On November 19, 1991, the Company was reorganized into
a joint stock limited company and renamed Shenzhen Victor Onward Textile Industrial Co., Ltd. pursuant to the
approval of Shenzhen Municipal Government.
The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and domestically listed foreign
investment shares ("B shares ,stock code: 200018") issued by the Company were listed on Shenzhen Stock
Exchange in 1992.
49
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
By June 30, 2014, 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-shares 43,141,032 shares, accounting for 25.51% of the total equity, is the
controlling shareholder of the company, Union Development Group Co., Ltd. (hereinafter referred to Union
Group)holding circulating A –share 5,681,089 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, 2014, Victor Onward printing and dyeing (Hong Kong) Co., Ltd. (hereinafter referred to as
"Hong Kong Victor Onward"), Shengzhong Industrial Co., Ltd. (hereinafter referred to as
"Shengzhong") ,Shenzhen East Asia Victor onward Holding (hereinafter referred to as ―East Asia Company),
Shenzhen Nanhua Printing and Dyeing (hereinafter refered to as ―Nanhua Company‖) as well as its
wholly-funded subsidiary Nanhua Xingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are all
subsidiaries of the Company.
Registered address: 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Legal Representative: Hu Yongfeng
2.Business nature
The Company engages in textile printing & Dyeing industry .
3.Business scope:
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.
IV.Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
The preparation of financial statements of the company based on continuous operation. Base on actual
transactions and events occurring, according to the ministry of finance issued ―Accounting Standards for
Enterprises - Basic Standards‖ on 15th February 2006 and 38 items of specific accounting standards, application
guidelines of accounting standards which was promulgated after, accounting standards interpretation and other
requirements (hereafter named ―Enterprise Accounting Standard‖), General Provisions of Financial Statements，
No.15 rules of the editing and reporting regarding information disclosure for companies publicly issuing securities
by China Securities Regulatory Commission（2010 revised）has confirmed，the financial report was based on it.
2. Statement on the Accounting Standard Followed by the Company
The financial statements prepared by the Company comply with the requirements of corporate accounting
standards. They truly and completely reflect the financial situations, operating results, equity changes and cash
flow, and other relevant information of the company.
3.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
50
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Its overseas subsidiaries choose the currency of the primary economic environment in which the subsidiary
operates as the functional currency. However, the financial statements should be translated into RMB.
5.The accounting solution of business combinations under the same and different control
(1)Corporate merger under same control
1. Realize all the terms and conditions of transactions in the process of enterprise acquisition step by step, and
adopt the accounting method to conduct a package deal for the multiple transactions if the following items
appear for the economic impact:
2. These deals are simultaneously entered into effect or under the consideration of mutual influence;
3. These transactions must be as a whole to achieve a complete business performance;
4. The occurrence of one deal is depended on that of other transactions;
5. Single transaction maybe is uneconomical, but it is economical when it is considered together with other
transactions.
Corporate merger under same control
1) The Individual Financial Statements
If the consideration of the merging enterprise is that the company makes payment in cash, transfers non-cash
assets or bears its debts, and issues equity bonds, it shall, at the date of merger, regard the share of the book value
of the owner's equity of the merged party as the initial cost of the long-term equity investment. The difference
between the initial cost of the long-term equity investment and the payment in cash, non-cash assets transferred as
well as the book value of the debts borne by the merging party shall offset against the capital reserve.
All the direct costs paid by the company for the conduct of business combination, including audit fees, appraisal
fees, legal services fee, etc., should be accounted into current profit and loss at the time incurred. If there is the
consolidated financial statements for the merged party, the initial cost of the long-term equity investment is
determined based on the owner's equity of the merged party at the date of merger.
2) The Consolidated Financial Statements
The acquired assets and liabilities by the merged parties through business combination are measured at their book
value with the merged parties on the date of merger. If the accounting policies adopted by the merged parties are
inconsistent with those of the company, the company can make adjustment in accordance with its accounting
policies on the date of combination, and confirm them in accordance with the provisions of the Accounting
Standards for Enterprises.
(2). Corporate merger under different controls
With the merger under the different control, the merger cost is the assets to pay, liabilities incurred or taken and the fair value of the
issued equity securities which a buyer gains the control from the acquiree on the purchase date. In case of any
future events defined in merger contract whose predictable occurrence could influence the merger cost and the
related amount could be reliably calculated at merger date, such amount should also be included in merger cost.
All the intermediary fees, such as audit fees, legal services fees, appraisal and consultation fees, and other related
management expenses paid by the company for the conduct of business combination should be accounted into
current profit and loss at the time incurred; the transaction charge of equity or debt bonds issued by the company
for the consideration of the merging enterprise are accounted into initial recognized value of the equity or debt
bonds.
The company recognizes as goodwill for the difference of the combination costs more than the fair value of the
identifiable net assets obtained from the merged parties, and accounts into current profit and loss for the difference
of the combination costs less than the fair value of the identifiable net assets obtained from the merged parties
after checked.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
If the enterprise achieves the business merger not under same control through multi-step implementation of
transactions, it shall distinguish the individual financial statements and the incorporated financial statements to
conduct the related process of accounting treatment:
1. In the individual financial statements, the sum of the book value of equity investment of acquiree held before
the date of purchase and the new investment cost added at the date of acquisition shall be made as the initial
investment cost of this investment project; If the holding acquiree’s equity before the date of purchase is involved
with other composite income, the other related composite incomes shall be transferred into the investment income
of current period in the disposal of the investment project (such as, the change of fair value of the salable financial
asset shall be attributed to capital reserves, hereinafter the same).
2. In the consolidation financial statements, the holding acquiree’s equity prior to the date of purchase shall be
measured again with the fair value of equity at the date of acquisition, and the difference between the fair value
and the book value is attributed to the investment income of current period; If the holding acquiree’s equity prior
to the date of purchase involved with other composite income, the other related composite incomes shall be
transferred into the investment income of current period at the date of purchase.
6,The method of drawing up the Consolidation financial statements
(1) The method of drawing up the Consolidation financial statements
The company has real control to the subsidiary and special purpose entity which are included in the scope of
Consolidation financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been included into the
scope of the consolidated financial statements should be consistent with those adopted by the company. If the
accounting policies & accounting periods adopted by the subsidiaries are different from those adopted by the
company, the company shall make necessary adjustments according to the accounting policies & accounting
periods it adopts when preparing the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity method, the company
shall prepare the consolidated financial statements based on the financial statements of the company & its
subsidiaries, and other related documents.
The influences of the internal transactions between the company & its subsidiaries, and its subsidiaries themselves
on the consolidated balance sheet, consolidated profit statement, consolidated cash flow statement &
consolidated statement of changes in owner’s equity will be counteracted at the preparation of the consolidated
financial statements.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary, the excess amount
should be still allocated against minority interest.
In the report period, If the subsidiary is added through the business combination under the same control, the
beginning balance of the consolidated balance sheet shall be adjusted. The incomes, expenses & profits of the
subsidiary incurred from the beginning of the current period to the end of the reporting period shall be included
into the consolidated profit statement. The cash flow from the beginning of the current period to the end of the
reporting period shall be included into the consolidated cash flow statement.
In the report period, If the subsidiary is added through the business combination not under the same control, the
beginning balance of the consolidated balance sheet shall not be adjusted. The incomes, expenses & profits of the
subsidiary incurred from the acquisition date to the end of the reporting period shall be included into the
consolidated profit statement. The cash flow from the acquisition date to the end of the reporting period shall be
included into the consolidated cash flow statement.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits incurred from the
beginning of the subsidiary to the disposal date shall be included into the consolidated profit statement. The cash
flow from the beginning of the subsidiary to the disposal date shall be included into the consolidated cash flow
statement.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
If an enterprise loses control over a subsidiary company it originally services due to the disposal of some equity
investment or for any other reasons, in consolidated financial statements, the remaining equity shall be
re-measured as per the fair value at the date of the control lost. The difference between the sum of the
consideration received on the disposal of equities and the fair value of remaining equities, and the net assets share
continually calculated by the original subsidiary company since the merger date on the basis of the original stock
proportion shall be accounted for as investment income for the period in which control was lost. Other
comprehensive income related to the equity investment that the subsidiary company originally owned shall be
included in current investment income at the date of the control lost.
（2）Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold
andsurchased in successively two years.
7.Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as cash when
preparing the cash flow statement.which are featured with short term (expire within 3 months since purchased),
high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash equivalents.
8.Foreign Currency Transaction
（1）The foreign currency translation services
The foreign currency transaction uses the spot rate at the time of the transaction as the exchange rate to convert
the currency into CNY for keeping account.
The balances of the foreign currency monetary items shall be converted according to the spot rate on the balance
sheet date. Except that the exchange balances on the foreign currency borrowings for expenses on the assets
eligible for capitalization shall be dealt according to the principle of loan expense capitalization, all the other
exchange balances shall be included into the profits & losses at the current period. The foreign currency
non-monetary items measured in historical costs shall still be converted according to the spot rate at the time of
the transaction. Their account standard money amounts shall not be changed. The foreign currency non-monetary
items measured in fair values shall be converted according to the spot rate on the recognition date of the fair
values. The exchange balances incurred accordingly shall be recorded into the profits & losses at the current
period or the additional paid-in capital.
（2）The foreign currency financial statements
The assets in the balance sheet and liabilities items, by using the spot exchange rate on the balance sheet date, all
equity projects except the item of ―Undistributed Profits‖, other items were calculated by the spot exchange rate.
With the income and expense items, it was determined by a systematic and rational approach, and calculated by
the approximate exchange rate of the spot exchange rate to convert on the transaction date. The converting
differences generated by the foreign currency financial statements, and all equity items in the balance sheet are
listed separately.
On disposal of overseas operations, the corresponding difference of foreign currency translation related to the
overseas operations and listed in the owner’s equity in Balance Sheet should be moved from owners’ equity to
current profits and losses. On partial disposal of overseas operations, the partial proportion of difference should
also be converted into current profits and losses.Partial disposal of a foreign operation, is calculated portion of the
foreign currency earnings disposal.
9.Financial Instruments
Financial instruments consist of financial assets, financial liabilities and equity instruments.
（1）Classification of financial tools
The Company divides the financial assets into four categories: financial assets measured at fair value and their
variations are recognized as current gain/loss, including trade financial assets or financial liabilities and
recognized directly as financial assets measured at fair value and their variations are recognized as current
gain/loss; Investment hold till expiration; loans and account receivable; saleable financial assets .The company
53
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
divides the financial liabilities into two categories: financial liabilities measured at fair value and their variations
are recognized as current gain/loss; other financial liabilities.
(2) Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade expenses is
recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is adopted when the
difference between the actual rate and face rate is minor) during the period of holding, and accounted as
investment gains. Actual rate is recognized when obtained, and is not changed in the predictable holding period or
applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold by the
company not including the debt which has price in active market, including accounts receivable, notes receivable,
prepaid accounts, other receivables, long-term receivables, etc. The contract or agreement price charging from
purchaser should be taken as the initial confirmation amount; if it has the nature of financing, it should be
confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book value is
accounted as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not obtained bond
interests) plus the related trade expenses is recognized as initial amount when obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains. Change of fair
value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as investment gains.
Meanwhile, the corresponding part of accumulated change of fair value accounted as owners’ equity is transferred
into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade expenses. Successive
measurement will be on the basis of amortized costs.
(3). Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is terminated if
almost all risks and rewards attached to the asset have been transferred to the acceptor. If retain all the risks and
rewards of ownership of financial assets, the financial assets can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the above financial
assets, the principle of substance being more important than form should be adopted. The transfer of financial
assets can be divided into overall transfer and part transfer of financial assets. If the transfer of financial assets
meet the conditions of terminating confirmation, the following the difference of the two amounts will be included
in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners’ equity (when the asset to be transposed is saleable financial asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value of the
transferred financial assts, the difference between the confirmed part and the unconfirmed part (in this case, the
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service assets retained should be deemed as the part of unconfirmed financial assets), should be amortized in
accordance with their relative fair value, and the difference between the following two amount should be included
current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the price in the
active market.
If the transfer of financial assets does not meet the conditions of terminating confirmation, the financial
assets should be confirmed again, the prices received will recognized as financial liabilities.
(4).The conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming the financial
liability or the part of it. Our company could stop confirming the currently financial liability and begin to confirm
the newly financial liability if the loaner made an agreement that they would assume the new way of financial
liability which replace the current one, and make sure the newly financial liability is totally different from the old
one in contract with our company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly financial liability
which is in new insertions of contract as the newly financial liability if the current financial liability has been
revised.
Stop admitting the balance of value of financial liability and consideration (Including the roll-out of non-cash
assets or financial liabilities) which could be consider as current profits and losses.
Stop and continue admitting a part of value, and distribute the value of financial liability, if our company
repurchased the part of financial liability. And the balance of value of which distributed to the part of stopping
admitting and paid (Including the roll-out of non-cash assets or financial liabilities) which could be consider as
current profits and losses.
(5).Recognition basis of financial assets and financial liabilities
The company has adopted financial assets and financial liabilities measured with the fair value to activate
financial assets or financial liabilities of the market, and determined its fair value based on the quotation in an
active market; if there no exists financial assets or financial liabilities to activate the market, the valuation
techniques (including the price made in the market transactions which is recently conducted by each party with
willing action and acquaintance of situation, the current fair value, discounted cash flow analysis and equity
option pricing models, etc. of other financial instruments which is substantially similar with the reference) shall be
used to determine its fair value; for the initial or original financial assets or the liabilities assumed, its fair value
shall be determined on the basis of the transaction price of market.
（6）Providing of impairment provision on financial assets (exclude receivable accounts)
On the balance sheet date, the company performs inspection on the book value of financial assets apart from those
which are calculated at fair value and the changes of which are taken into the current profit and loss account.
Depreciation provision is required for the circumstance where objective evidences indicate that depreciation
occurs to the financial assets.
Objective evidences for depreciation include (but not limited to) the following:
1. the issuer or the debtor suffers serious financial difficulty;
2. the debtor has breached the contract, such as failure or delay thereof in repayment of interests or the principal;
3. the debtee compromises to the debtor in consideration of the economic or legal aspect;
4. the debtor is very likely to be in bankruptcy or other financial reorganization;
5. the issuer suffers serious financial difficulty, which results in failure of financial assets to trade in the active
market;
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6. observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified
with the individual financial asset in the group, including: adverse changes in the payment status of borrowers
in the group; an increase in the unemployment which appears in the debtor’s country or region; a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers in the group;
7. any significant change with an adverse effect that has taken place in the technological, market, economic or
legal environment in which the issuer of equity instruments operates, and indicates that the cost of
investments in equity instruments may not be recovered; or
8. the fair value of the equity instrument investment suffers serious or non-temporary drop.
The special depreciation method of financial assets is as follows:
(1) Depreciation Provision of Financial Assets Available for Sale:
The individual identification method is adopted to evaluate the depreciation losses for the financial assets available
for sale. Of which, the objective evidence that indicates the depreciation of equity instrument investment available
for sale includes the fair value of the equity instrument investment suffering serious or non-temporary drop, and
the specific quantitative criteria:
The company shall conduct a separate check to all equity instrument investment available for sale at the balance
sheet date, if fair value of the equity instrument investment at the balance sheet date is less than its initial investment
cost beyond 50% (including 50%) or over one year of duration (including one year), the depreciation occurs; if fair
value of the equity instrument investment at the balance sheet date is less than its initial investment cost beyond 20%
(including 20%) but not up to 50%, the company shall take into account of other relevant factors, such as price
fluctuation rate, etc., to judge if there is depreciation of the equity instrument investment.
When the financial assets available for sale (namely, AFS financial assets) are impaired, the company shall reverse
and charge the accumulated losses due to decreases in fair value previously recognized directly in capital to profit or
loss for the current period, even if the financial assets are not derecognized. The reversed accumulated losses are the
asset’s initial acquisition costs after deducting amounts recovered and amortized, current fair value and impairment
losses previously recognized in profit or loss.
If, in a subsequent period, the carrying amount of AFS debt instruments investment increases and the increase can
be related objectively to an event occurring after the impairment was recognized, the previously recognized
impairment losses are reversed. The reversal shall be recognized in profit or loss for the current period. The reversal
of impairment losses of AFS equity instruments is recognized in capital reserve. But, impairment losses incurred by
investments in an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot
be reliably measured and derivatives that are linked to and must be settled by delivery of investments in equity
instruments are not reversed.
(2) Depreciation Reserves of Held-to-Maturity Investments
If there is objective evidence of depreciation for held-to-maturity investments, the difference between the carrying
amount and the present value of estimated future cash flows is recognized as impairment loss. If there is evidence
that its value has recovered after accrued, the previously recognized impairment loss shall be reversed. The
amount of the reversal shall be recognized in profit or loss for the current period. The reversal shall not result in a
carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment
not been recognized at the date the impairment is reversed.
All Recognition Standards of Depreciation of Financial Assets Available for Sale
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Notes: The company should clearly disclose the identified criteria of all kinds of financial assets available for sale
impairment. For investments in equity instruments, it should clearly disclose specific quantitative criteria to deter
mine whether the fair value has serious or non-temporary decline, cost calculation method and fair value calculati
on method by the end and evidence of continuous decrease.
All Recognition Standards of Depreciation of Financial Assets Available for Sale
（7）If investment held to mature is recztegorized to sellable financial assets, please state the intention or evidence
of change incapability .
10. Recognition standard and providing basis of bad debt provision on receivable accounts
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
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.
Conduct the devalue test separately. Set up the bad
debt reserve according to the shortfall of the present
value of expected future cash flows against its
Provision method with material specific amount and
carrying amount and record it into the profits &
provision of specific bad debt preparation
losses at the current period. Allot those assessed
individually but no impairment for receivables into
the bad debt reserves on a collective basis.
(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） 3.00% 3.00%
1－2 years 10.00% 10.00%
2－3 years 50.00% 50.00%
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Over 3 years 100.00% 100.00%
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.
(3)Account receivable with non-material specific amount but specific bad debt preparation
Accounts receivable with non-material specific amount and being not able to relent
Reason of specific bad debt preparation
its risk character by provisioning bad debt preparation in accordance with portfolio
provision：
Bad debt preparation will be provisioned in accordance with the difference of
Provision method of bad debt preparation
present value of its future cash flow below its book value.
11.Inventory
（1）Inventory classification
Inventory refers to various assets that are held for sale, the work in process or consumptions during the process of
the production for the company in the daily of business, mainly including raw materials, packaging material, low
value consumables, in-process products, inventory, etc.
（2）Pricing method of stock delivered
Stock delivered is measured according to weighted average method.
The inventories are initially calculated and accounted in accordance with the actual cost, and the inventory cost
includes the purchase cost, processing cost and the other cost.
（3）Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.
Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of Obsolete Inventory
Reserves:After taking stock at the end of the period,
In the process of normal operation, the realizable value of goods inventories such as completed products,
commodities and tradable materials etc. is recognized by its estimated selling pricing deducting estimated selling
expenses and related taxes and expenses. The realizable net value of material inventories for processing is
recognized by the estimated selling price of the finished products deducting estimated cost and selling price and
related taxes. The realizable net value of inventories held for execution of sales contracts or labor contracts is
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calculated on the basis of contract price. In case inventories exceed contracted amount, the exceeded part is based
on the general selling price.
At end of period, depreciation reserve is made for every individual inventory item. For inventories in large variety
with low unit price, depreciation reserve is made by categories. For inventories related to products series produced
and sold within the same region, having the same or similar end-use purpose, and hard to be differentiated from
other items, combined depreciation reserve is made.
When factors that caused deduction of prior inventory value disappear, the deducted amount shall be resumed, and
originally accrued depreciation provision shall be returned. The amount returned is booked into current income
statement.
（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.
12.Long-term equity investment
（1）Investment cost confirmation
(1) For the long term equity investment from enterprise merger, the detailed accounting policy, please refer to the
accounting method of merger of enterprises under or not under the same controller in Note II / (V). While, the
long term equity investment acquired through liability reorganization is booked on the basis of fair value.（2)
Long-term equity investment obtained by other ways.Long-term equity investment obtained by cash payment
is recognized for initial investment cost according to the price practically paid.Long-term equity investment
obtained by placing of equity stocks is recognized for initial investment cost at the fair value of the
stock.Long-term equity investment input by investors is recognized for initial investment cost according to the
investment contract or agreement (less the cash dividend or profit announced but not distributed). However when
the value in the contract or agreement is not fair value is not adopted. The non-monetary asset exchange for a
commercial real income and assets or the fair value other assets can be reliably measured, the initial investment
cost should be determined according to long-term equity investment exchanged through the non-monetary asset
exchange, unless there is evidence showing that for the fair value of assets is more reliable; the non-monetary
asset exchange which does not meet the above premises, the book value of the exchanged assets to and the
relevant fees and taxes to be paid should be the initial investment cost of the long-term equity investment. The
initial investment cost of the long-term equity investments obtained through debt restructuring should be
determined in accordance with fair value.
(2)Follow-up Measurements & Recognitions of Profits or Losses
Cost basis is adopted in accounting of long-term equity investment without joint control or major influence, and
with no quotation in an active market, thus the fair value is not able to be reliably measured. Equity basis will be
adopted for the long-term equity investment with joint control or major influence.The long-term equity investment
that has joint control or significant influences over the invested entity shall be measured by employing the equity
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method. If the initial cost is more than the investing enterprise' attributable share of the fair value of the invested
entity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not be
adjusted. If the initial cost is less than the investing enterprise' attributable share of the fair value of the invested
entity's identifiable net assets for the investment, the difference shall be recorded into the profits & losses at the
current period.The treatment for the other changes of owner’s equity besides net loss and profit of the unit being
invested: for the other changes of owners’ equity besides net profit and loss of the unit being invested, when
shareholding ratio remains unchanged, the part shared or undertaken according to share ratio, the book value of
long-term equity investment should be adjusted, and at the same time, the capital surplus (other capital surplus).
（2）Recognition of Profits or Losses.Employing the cost method, besides acquiring the actual payment for
investing or the dividends / profits which have already been declared but not distributed yet, the company shall
recognize its current investment income by enjoying the dividends / profits declared to be distributed by the
invested entity.The investment income Recognition by cost method is only limited to distribution of accumulated
net profit after the unit being invested receives investment, the part of profit and cash dividends more than the
amount will be regarded as initial investment cost recovery. The loss which should be confirmed to the unit being
invested under equity method should be treated in accordance with the following orders: First of all, deduct the
book value of long-term equity investment. Second, if the book value of long-term equity investment can not be
deducted, the long-term equity value of the net value of the unit being invested should be further confirmed as
investment loss and used to deduct the book value of long-term receivables. Finally, after the above treatment, the
additional liabilities to be undertaken according to investment contract or agreement should be confirmed as
expected liability according to the expected liability and be concluded in the current investment loss. If the unit
being invested achieves profit in the following period, after deducting the unconfirmed liabilities, it should be
treated according to the adverse order as described above, the book value of the confirmed expected liabilities
should be deducted, the book value of the long-term equity investment and long-term equity of net assets of the
unit being invested should also be resumed, and at the same time, the investment income should be confirmed.
（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.
On the balance sheet date, if the long-term equity investment shows impairment due to the decreasing market
price or the deteriorating business operation of the invested entity, the recoverable amount of the long-term equity
investment should be determined on the basis of the net amount from the fair value of the individual long-term
equity investment less the disposal expenses, or the present worth of the estimated future cash flow of the
long-term equity investment, whichever is higher. When the recoverable amount of the long-term equity
investment is less than the book value, the book value of assets should be written down to the recoverable amount,
and the amount written down is recognized as the asset impairment loss, which should be included in the current
profits and losses; meanwhile, the corresponding asset impairment provision should be counted and drawn. As to
a long-term equity investment with no significant influence, if there is no offer in the active market for it and its
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fair value cannot be reliably measured, its impairment loss shall be recognized according to the difference
between its carrying amount & the current value recognized by discounting the future cash flow according to the
current market return similar to the financial asset. Besides the business reputation formed by the business
combination, where the measurement results of the removable amounts show that the receivable amount of any
other long-term equity investment is lower than its carrying value, the difference shall be recognized as the
impairment loss.No matter whether there is any sign of possible assets impairment, the business reputation formed
by the business combination shall be subject to impairment test every year.Once any loss of the long-term equity
investment impairment is recognized, it shall not be switched back any more.
13. Investment real estate
The term ―Investment real estates‖ refers to the real estates held for generating rentand/orcapital appreciation,
including the right to use any land which has already been rented, the right to use any land which is held and
prepared for transfer after appreciation & the right to use any building which has already been rented.
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 Annual depreciation rate（%）
life（Year） value rate
Real estate in 20-50 0% 2%-5%
Hongkong
Real estate in 20-30 10% 3%-4.5%
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.
The company shall estimate the recoverable amount for any impairment, and then determine the corresponding
impairment loss if the recoverable amount less than its book value.
Once the impairment loss of the real estate investment is recognized, it will not be reversed in the future.
When the investment real estate is disposed of, or permanently terminates its use and no economic benefits are
expected from its disposal, terminate the confirmation of the investment real estate. Disposal income of
investment property for sale, transfer, disposal of scrap or being destroyed is charged to current profit or loss after
deducting its book value and related taxes.
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Notes: 1. using the cost model, the disclosure of depreciation or amortization method of investment property
and impairment provision basis;
2.using the fair value model, should be disclosed in accordance with the accounting policy choices, including the identification of
investment property location has an active real estate market basis; the company can achieve the same or similar from real estate
transactions, real estate market prices and other relevant market information to the fair value of investment property were estimated
based; also shows the key assumptions and major uncertainties when the fair value of investment property estimation involved.
14.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing or management,
and operation with service life of more than one year. Fixed assets are recognized when all of the following
conditions are satisfied：Financial benefits attached to the fixed asset is possibly inflowing to the Company;(2)
The cost of the fixed asset can be reliable measured.
（2）Cognizance evidence and pricing method of financial leasing fixed assets
The fixed assets acquired by the company in line with the following one or several criteria shall be recognized as
the fixed assets acquired under finance leases: (1) at the expiration of the lease, the ownership of the leased assets
shall be transferred to the company. (2) the company has the option to purchase the leased assets, the purchase
price is expected be far lower than the fair value of the leased assets under the implementation of option right, so
that it can be reasonably determined that the company shall exercise the option on the acquisition date. (3) the
lease term is the majority for the leased assets even if the ownership no transferred. (4) the present value of the
minimum lease payments of the company almost is equal to the fair value of the leased assets on the acquisition
date. (5) For the special nature of the leased assets, only the company can use if no major modification made. For
the fixed assets acquired under finance leases, the company takes less of the fair value of the leased asset on the
acquisition date and the present value of the minimum lease payments as recorded value. Also, the minimum lease
payments are accounted as the recorded value for the long-term payables, and the difference are as the
unconfirmed financing fees. The initial direct expenses, such as commission charge, attorney fees, travel expenses
and stamp duty attributable to the lease item occurred in the process of the lease negotiation and the signature of
lease contract, shall be recorded into the leased assets value. The unrecognized financing charges in each period
during the lease term are amortized by effective interest method. The company shall adopt the depreciation policy
in line with its own fixed assets to count and draw the depreciation of fixed assets acquired under finance leases.
If the ownership of lease assets acquired at the expiration of lease can be reasonably confirmed, the depreciation
will be recognized in the use life of lease assets. If can’t be confirmed, the shorter period between the lease term
and the use life of lease assets will be recognized as the depreciation.
（3）Fixed assets depreciation method
Except for the fixed assets that continually used after the depreciation counted and drawn fully, the depreciation of
fixed assets is made by average year method. Rate is based on category, expected years of use and expected net
residual ratio.
For the fixed assets acquired under finance leases, if the ownership of lease assets acquired at the expiration of
lease will be reasonably confirmed, the depreciation will be recognized in the remaining use life of lease assets. If
can’t be confirmed, the shorter period between the lease term and the remaining use life of lease assets will be
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recognized as the depreciation.
For the fixed assets formed by using the special reserve expenditure, the special reserve is offset against the
cost of fixed assets and the same amount of accumulated depreciation is recognized. Also, the depreciation for the
fixed assets are no longer counted and drawn in the future period.
The company shall confirm the useful life and estimated residual value rate for the fixed assets according to the
nature and the use status of the fixed assets. At the end of the year, the service life, estimated residual value and
depreciation method for the fixed assets are reviewed, and the adjustment will be accordingly if there is difference
with the previous estimated count.
Classified depreciation years and depreciation rates are as follows:
Type Evpected useful Estinated residual value rate Annual depreciation rate（%）
life（Year）
House and building 20-50 0%-10% 2%-5%
Machinery and equipment 5-14 10.00% 6%-18%
Electric Equipment 5 10.00% 18%
Transportation equipment 4-5 10.00% 18%-22.5%
(4). Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset Impairment
Reserves
The company shall, at the end of each period, make a judgment on whether there is any sign of possible fixed
assets impairment.
Where any evidence shows that there is possible fixed assets impairment, the recoverable amount of the fixed
assets shall be estimated. The recoverable amount shall be determined in light of the higher one of the net amount
of the fair value of the fixed assets minus the disposal expenses & the current value of the expected future cash
flow of the fixed assets.
Where a fixed asset's recoverable amount is lower than its carrying value, the carrying value of the fixed asset
shall be recorded down to the recoverable amount, and the reduced amount shall be recognized as the loss of the
fixed asset impairment and be recorded into the profits & losses at the current period. Simultaneously, the fixed
asset impairment reserve shall be made accordingly.
After the loss of the fixed asset impairment has been recognized, the depreciation expense of the impaired fixed
asset shall be adjusted accordingly in the future period so as to amortize the post-adjustment carrying value of the
fixed asset systematically (deducting the expected net salvage value) within the residual service life of the fixed
asset.
When there are signs showing that a fixed asset will devaluate, the enterprise estimates its collectable amount
based on the individual fixed asset. If it is difficult to make estimation of the collectable amount for the individual
fixed asset, the enterprise will recognize its collectable amount on the basis of the asset group that the fixed asset
belongs to.
15.. Projects under construction
（1）Categories of projects under construction
The company shall measure the self-constructed constructions in progress at the actual cost, which comprises
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those expenditures necessarily incurred for bringing the asset to working condition for its intended use, including
materials costs, labor costs, relevant taxes paid, capitalized loans, indirect expense for apportion, etc.. The
constructions in progress of the company should be accounted by the project classification.
（2）Standard and timing for transferring of projects under construction to fixed assets
All the expenditures that bring the construction in process to the expected condition for use shall be the credit
value of the fixed asset. If the fixed asset construction in process has already reached the expected condition for
use, but hasn’t been made the final account; it shall be carried forward to a fixed asset according to its estimated
value based on the budget, cost or actual cost of the construction starting from the date when it reaches the
expected condition for use, and the fixed asset shall be depreciated according to the company’s depreciation
policy for fixed assets. After the final account has been made, the original provisional estimated value shall be
adjusted according to the actual cost, but the depreciation which has originally been counted & drawn shall not be
adjusted.
(3) Test Method for Construction-in-Process Impairment and Counting & Drawing Method
The company shall, at the end of each period, make a judgment on whether there is any sign of possible
constructions-in-process impairment.
Where any evidence shows that there is possible constructions-in-process impairment, the recoverable amount of
the constructions-in-process shall be estimated. The recoverable amount shall be determined in light of the higher
one of the net amount of the fair value of the constructions-in-process minus the disposal expenses & the current
value of the expected future cash flow of the constructions-in-process.
Where a construction-in-process's recoverable amount is lower than its carrying value, the carrying value of the
construction-in-process shall be recorded down to the recoverable amount, and the reduced amount shall be
recognized as the loss of the construction-in-process impairment and be recorded into the profits & losses at the
current period. Simultaneously, the construction-in-process impairment reserve shall be made accordingly.
Once any loss of the construction-in-process impairment is recognized, it shall not be switched back in the future
accounting periods.
When there are signs showing that constructions in progress will devaluate, the enterprise estimates its collectable
amount based on the individual construction in progress. If it is difficult to make estimation of the collectable
amount for the individual construction in progress, the enterprise will recognize its collectable amount on the
basis of the asset group that the construction in progress belongs to.
16.Borrowing expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing
expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current
term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and inventories which
are constructed or produced in a long time to reach the predicted use or sale state.
When a loan expense satisfies all of the following conditions, it is capitalized:
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct or produce the
assets which meet the capitalization conditions, and expend by cash or transferring non-cash assets or bearing
interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization,
the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization conditions, the Loan
costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used individually, the
capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed separately and is ready
for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is
entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
.3 Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If
the interruption is a necessary step for making the qualified asset under acquisition and construction or production
ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs
incurred during such period shall be recorded into the profits & losses at the current period, till the acquisition and
construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the asset which
satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less weighted
average of specialized loan part of asset expense multiplies capitalizing rate of common Loan occupied.
Capitalizing rate is determined according to weighted average interest of common Loan.
If the Loan has discount or premium, the discount or premium amount should be determined according to
actual interests in each accounting period. The interest amount should be adjusted in each period.
17.Intangible assets
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the intangible assets are acquired
The cost of the purchased intangible assets includes its buying price, relevant tax and the othe expenses that
are directly attributed to this assets meeting its predetermined objective and other expenses that occur. The buying
price of intangible assets is over the deferred payment under normal credit conditions, which has the nature of
financing materially, the cost of intangible assets is determined on the basis of the present value of its buying
price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and determine the entry
value on the basis of the fair value of the intangible assets,we have the balance between the book value of debt
restructuring and the fair value of intangible assets used for mortgage charged to the current profit and loss.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
The entry value of the non-monetary assets exchanged into by the non-monetary assets are determined on the
basis of the fair value of the assets exchanged out if the exchange of non-monetary assets has commercial nature
and the assets exchanged into or out can be reliably measured, unless there is authentic evidence indicating that
the fair value of assets exchanged into are more reliable; if the non-monetary assets that cannot meet the above
prerequisite use the book value of the assets exchanged out and relevant taxes payable as the cost of the
non-monetary assets, the profit and loss is not confirmed.
The entry value of the intangible assets acquired by the absorption merger under the control of one company
is determined by the book value of the merged party;the entry value of the intangible assets acquired by the
absorption merger that is not under the control of one company is determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in developing the
assets, cost of service, registration fees, other patent used in developing, amortization of concession and interest
charges meeting the capitalization conditions and othe direct costs that occur before the intangible assets
meeting the predetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method during the
period when the assets can bring about economic interests;The intangible assets are deemed as uncertain
serviceable life and are not amortized if it is impossible to expect the period when the assets could bring about
economic interests.
2.Estimation of service life of intangible assets with limited service life
The land use right shall be amortized on average according to the year limit of transfer from the date of
transferring; proprietary technology, non-proprietary technology and other intangible assets shall be amortized on
average by installment in accordance with the shortest one among the three including estimated durable years,
beneficial years specified in contract and valid years stipulated by law. The amortization amount is accounted for
as the related asset costs and current profit and loss according to the beneficiaries.
At the end of each period, the review is made for service life and amortization method of the intangible assets which have limited
service life.
After review, there is no difference for the service life and amortization method of intangible assets at the end of
this period.
Item Amortisation periods Basis
3.The judgment basis of the intangible assets with indefinite life
At the end of each period, the review is made for service life of the intangible assets which have unrecognized
service life.
After review, if there is evidence indicating the service life of intangible assets is finite, its service life should be
estimated.
4.Provision for impairment of investment assets
The intangible assets that have certain serviceable life are conducted at the ending with the test of
depreciation of value if the assets indicate obviously that those are depreciating
For conducting a test of depreciation of value of the intangible assets, it needs to estimate the recoverable
amount of the assets. The recoverable amount is determined by the higher between the net amount obtained
through the fair value of intangible assets minus settlement changes and the present value of the future cash flow
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
expected by the intangible assets.
When the recoverable amount of intangible assets is below their book value, the book value of intangible
assets is written down to the recoverable amount and the amount written down is confirmed as the loss of
depreciation of value of intangible assets and is charged to the current profit and loss, while the corresponding
provision for the depreciation of value of intangible assets is made.
The depletion of the depreciation of value of intangible assets or the amortization charge in the future period
will be adjusted accordingly after confirmation of the loss of the depreciation of value of intangible assets so that
it can systematically allocate the book value of intangible assets adjusted in the residual serviceable life of
intangible assets(deduction of anticipated net value).
Upon confirmation of the loss of the depreciation of value of intangible assets, the loss will not be reversed in
the subsequent accounting period any longer.
When there are signs showing one intangible asset will devaluate, the enterprise estimates its collectable amount
based on the individual intangible asset. If it is difficult to make estimation of the collectable amount for the
individual intangible asset, the enterprise will recognize its collectable amount on the basis of the asset group that
the intangible asset belongs to.
18.Long-term amortizable expenses
Long-term deferred charge will be averagely amortized in the benefited period.
19..Predicted liabilities
（1）Recognition of Predicted liabilities
The liabilities related to contingencies and meeting the following conditions are reflected as estimated liabilities:
The liabilities that are present liabilities assumed by the company;
The fulfillment of the liabilities may cause outflow of economic interests from the company;
The amount of the liabilities can be reliably measured.
（2）Accounting of Predicted liabilities
Predicted liabilities shall be conducted initial measurement according to the best estimates of related existing liabilities,
When the company recognizes the optimum estimation, it shall be in overall consideration of risks, uncertainty
and time value of currency and other factors related to contingent matters. When the influence of time value of
money is significant, the optimum estimates shall be determined by discounting relevant future cash outflow
The optimum estimates are conducted as follows:
If there is a continuous range (or area) for the necessary expenses and the same result possibility within the range,
the optimum estimate is recognized according to the middle value, namely the average of upper limit and lower
limit of amount within the range.
If there no exits a continuous range (or area) for the necessary expenses or the different result possibility within
the range even if there is a continuous range, and if there are contingent matters related to individual item, the
optimum estimate is recognized according to the amount that has most possibility to occur. If there are contingent
matters involving multiple items, the optimum estimate is counted and confirmed as per all the possible results
and associated probabilities.
20.Revenues
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
（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 benefits related to the transactions are likely to flow into the enterprise, if the revenue amount can
be reliably measured, the revenue amount of transferring assets use right can be recognized as following:
(1) the interest income amount will be measured according to time and actual interest rates of the currency funds
used by others.
(2) the income amount of usage charges will be measured according to the charge time and method determined in
the relevant contract or agreement.
21.Governmental subsidy
（1）Categories
Government Grant refers to monetary or non-monetary assets acquired without consideration from government,
except for the capital invested in by the government as business owner. According to relevant grant objects
prescribed in the government documents, the government grants are classified as the government grants related to
assets and the income-related government grants. The government grants related to assets refer to the grants of
long-term assets acquired by the company, used for purchase and construction or formed by other methods, and
the income-related government grants refer to all the government grants except for those pertinent to assets.
(2) Accounting Policy
1. Recognition of Government Grant
If the government grant is the monetary asset, it shall be measured in the light of the received or receivable
amount. If the government grant is the no-monetary asset, it shall be measured at its fair value. If its fair value
cannot be obtained in a reliable way, it shall be measured at its nominal amount (RMB 1). The government grants
measured at their nominal amounts shall e directly included in the current profits and losses.
2. Accounting Method
The government grants pertinent to assets shall be recognized as deferred income, and it will be accounted to as the
non-operating income amortized by installment according to the service life of assets constructed or purchased.
If it is necessary to refund any government grant which has been recognized, and there is the deferred income
concerned, the book balance of the deferred income shall be offset against, but the excessive part shall be included
in the current profits and losses. If there is no deferred income concerned to the government grant, it shall be directly
included in the current profits and losses.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
22. Deferred income tax assets/Deferred income tax liability
1. References for confirmation of deferred income tax assets
The company is likely to determine the deferred income tax assets produced from deductible temporary
differences with the limit of offsetting the taxable income of temporary difference.
2.The confirmation basis of deferred income tax liabilities
The Company confirms the temporary differences of the taxable that is not paid in the current and prior periods as
the deferred income tax liabilities. However, the goodwill, the transactions formed from non-business merger and
those will affect either accounting profit or the temporary differences of the taxable income when the transactions
occur are not included in the deferred income tax liabilities.
23.Operational leasing and Financing leasing
（1）Accounting of operational leasing
(1) The leasing fees paid for the leased assets by the company shall be recorded as the current expense according to
the straight-line method in the whole lease term not excluding the rent free period. The initially direct expense
related to the lease transactions paid by the company shall be recognized as the current expense.
When the assets lessor has assumed the lease-related expenses which should be borne by the company, the company
shall deduct these expenses from the total amount of rent, amortize in the lease term according to the rents after
deducted and record as the current expenses.
(2) The leasing fees received for the leased assets by the company shall be recognized as the lease income
according to the straight-line method in the whole lease term not excluding the rent free period. The initially
direct expense related to the lease transactions paid by the company shall be recognized as the current expense.
For a large of amount, it will be capitalized and recorded as the current revenue based on the same confirmation
of lease income during the whole lease period.
When the company has assumed the lease-related expenses which should be borne by the lessee, the company shall
deduct these expenses from the total amount of rent and amortize in the lease term according to the rents after
deducted.
(2) Accounting Method for Financing Leases
(1) The assets acquired under financing leases: the lower value between the fair value of leased assets and the
present value of the minimum lease payments is recognized as the recorded value, the minimum lease
payments are recognized as the recorded value of long-term payables, and the difference is recognized as
unrecognized finance expense at the inception of the lease.
The company shall adopt the effective interest method to amortize and record as the financial costs during the
assets lease term.
（2）Finance leased assets: the company inception of the lease, the finance lease receivables, the difference
between the present value and the residual value of its unsecured recognized as unrealized financing income
recognized in the respective period of future lease rental income received, initial direct costs related to the
transaction with the rental companies, and included in the initial measurement of the finance lease receivable
and reduce the amount of revenue recognized over the lease term.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
24.Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year
□ Yes √ No
（1）Change of accounting policies
Is there any change in accounting policies in the report period
□ Yes √ No
（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
□ Yes √ No.
25.Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
□ Yes √ No
（1）Change of accounting policies
Is there any change in accounting policies in the report period
□ Yes √ No
（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
□ Yes √ No.
V.Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
Business tax Business income 5%
Urban Construction Tax and Educational
Turnover tax 7%
Surtax
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.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
1.Enterprise income tax
The interest rate of corporate income tax of the company and subsidiaries in China mainland is 25%, the interest
rate of the income from Hong Kong of the subsidiaries in Hong Kong is 16.5%.
2. VAT.
The output tax ratio of domestic sales revenue and processing income of printing and dyeing products for the
company and its subsidiaries established in Mainland China is 17%, and the export sales is subject to the
―exemption, compensation and refund‖ methods. The company’s input tax for purchasing raw materials offsets
the output tax with ratio of 17%. Of which, the input tax paid for export products can be applied for refunds. The
company’s VAT payable is the balance after offset between current period’s input and output taxes.
The subsidiaries of the company in Hong Kong do not need to pay the VAT.
3. Business tax
Business tax applied to revenues of the company and South China Dyeing and Printing Co., Ltd. from the housing
rental, rate being 5%. It’s unnecessary for the subsidiary in Hong Kong to pay the business tax.
(IV) Urban Construction Tax and Educational Surtax
The company’s urban construction tax and education surtax are based on payable VAT and business tax, tax rate
being 7% and 3%. Since January 1, 2011, 2% of VAT and business tax actually paid by taxpayer are as the local
education surtax. It’s unnecessary for the subsidiary in Hong Kong to pay the urban construction tax and the
education surtax.
(V) Property Tax
The tax of property with own use for the company and its subsidiaries established in Mainland China is based on
70% of original value of the property, tax rate being 1.2%, and the tax of leased property is based on the rental
income, tax rate being 12%. It’s unnecessary for the subsidiary in Hong Kong to pay the property tax.
VI. Enterprise consolidation and combined financial statements
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
In RMB
After
wrote
Amount down
Other
used to current
projects
write period
balance
Actual Proporti Whether Interest down loss of
Full essential Holding
Registra Register capital on of consolid of lost minority
name of Subsidia Busines Busines ly from proporti
tion ed amounts voting ation of minority included sharehol
subsidia ry type s s scope net on
place capital of rights(% report sharehol in ders
ry investm (%)
the end ) form der minority over
ent to
sharehol equity
subsidia
der beginni
ry
interest ng share
of
minority
71
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
sharehol
ders in
the
subsidia
ry from
the
parent
compan
y’s
share ,B
alance
of
Owner's
equity
Purchase
of raw
materials,
marketin
Hong
2,400,0 g of
Kong Limited printed 2,400,0
Hong 02 100.00 100.00
Victor Compan Trade and dyed 02 0.00 Yes 0.00 0.00 0.00
Kong （HKD % %
Onward y woven （HKD
） fabrics,
Co.Ltd
investme
nt and
holding
business
Sales of
Shenzho 1,000,0 Corduroy 1,000,0
Limited
ng Hong Trade 00 , dyed 00 100.00 100.00
Compan 0.00 Yes 0.00 0.00 0.00
Compan Kong （HKD cloth and （HKD % %
y
y ） printed ）
cloth
Producti
on and
16,874,
85,494, sales of
Nanhua Limited 255(HK
Shenzhe Product 700 printed
Compan Compan D)+4,24 0.00 69.44% 69.44% Yes 0.00 0.00 0.00
n ion （HKD cloth
y y 0,100(R
） and
MB)
dyed
cloth
Sales of
Xinye Limited 10,000 10,000
Hong printed 100.00 100.00
Compan Compan Trade （HKD （HKD 0.00 Yes 0.00 0.00 0.00
Kong cloth % %
y y ） ）
and
72
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
dyed
cloth
Textilet,
Printing
and
dyeing
industry
Shenzh and
Limited
en East Shenzhe 3,000,0 Raw 1,530,0 -1,738,4
Compan Trade 0.00 51.00% 51.00% Yes 0.00 0.00
Asia n 00 material 00.00 20.00
y
Co s ,Machi
nery
equipme
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 December 31,
2013 the shareholding structure as follows:
Name of investor Year-beginning Proportion % Year-end amount Proportion%
amount
The Compoany 46,868,194.54 54.82% 46,868,194.54 54.82%
Shenye Union (Hongkong) 26,127,180.32 30.56% 26,127,180.32 30.56%
Co.,Ltd.
The Company 12,499,325.14 14.62% 12,499,325.14 14.62%
Hong Kong Victor Onward 85,494,700.00 100.00% 85,494,700.00 100.00%
Company
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. Explanation to changes in scope of consolidation
Notes
N/A
□ Applicable √ not applicable
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
3.Exchange rate of main accounts of overseas businesses
Except the company, its subsidiaries Nanhua Company. and Shenzhen East and Asia Company. choose RMB as
the functional currency, other subsidiaries choose HK dollar. However, the financial statements should be
translated into RMB. For the translation method of the financial statements for foreign currency, please refer to
the Note II.9, The spot exchange rate of HKD to RMB WAS 0.78623 at year beginning , and the spot exchange
rate at year endwas0.79375 the approximate exchange rate of the sot exchange rate uses the current average
exchange rate 0.78999.
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Year-end balance Year-beginning balance
Items Exchange Exchange
Foreign currency RMB Foreign currency RMB
rate rate
Cash -- -- 58,423.00 -- -- 41,613.00
RMB -- -- 49,188.00 -- -- 37,065.00
HKD 11,634.00 0.79375 9,234.00 5,785.00 0.78623 4,548.00
Bank deposit -- -- 84,519,939.00 -- -- 62,791,183.00
RMB -- -- 43,299,231.00 -- -- 22,172,845.00
HKD 50,581,558.00 0.79375 40,149,112.00 50,311,621.00 0.78623 39,556,478.00
USD 174,164.00 6.1528 1,071,596.00 174,164.00 6.0969 1,061,860.00
Other monetary capital -- -- 5,670,700.00 -- -- 670,114.00
RMB -- -- 5,670,700.00 -- -- 670,114.00
Total -- -- 90,249,062.00 -- -- 63,502,910.00
Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,
stored overseas, with potential recovery risk.
RMB 30 million for the deposit of RMB deposits in bank deposits;
2.Bill receivable
（1）Classification bill receivable
In RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 1,500,000.00
Total 1,500,000.00
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
3. Interest receivable
（1）Interest receivable
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Fixed deposit interest 79,340.00 79,340.00
Total 79,340.00 79,340.00
4. Account receivable
(1).Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification
Amount Proportion( Amount Proportion( Amount Proportion( Amount Proportion(%
%) %) %) )
Receivables with major
individual amount and bad
debt provision provided
individually receivables 3,960,436.0 3,960,436.0 3,960,436
31.46% 100.00% 31.46% 3,960,436.00 100.00%
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 8,626,416.0 8,626,416.0 8,626,416
68.54% 100.00% 68.54% 8,626,416.00 100.00%
but bad debt provision is 0 0 .00
provided
12,586,852. 12,586,852. 12,586,85 12,586,852.0
Total -- -- -- --
00 00 2.00 0
Category explanation of accounts receivable:
Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s shares
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □ not applicable
In RMB
Description Book balance Bad debt provision Rate(%) Reason to provide
Hong Kong Victor Onward Co., Ltd. 1,851,841.00 1,851,841.00 100.00% Aging long
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Carnival Index International Ltd. 1,098,549.00 1,098,549.00 100.00% Aging long
TAI YANG ENTERPRISE CO.,Ltd. 1,010,046.00 1,010,046.00 100.00% Aging long
Total 3,960,436.00 3,960,436.00 -- --
Account reveivable on which bad debt proisions are provided on age basis in the group
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
Receivable accounts with minor amount but on which had debt provisions are provided individually at end of
period
√Applicable □Not applicable
In RMB
Description Of other
Book balance Amount of bad debt Rate Reason
receivables
VEGA CARMENT CO.
768,189.00 768,189.00 100.00% Aging long
Ltd
Fly Dragon International 573,536.00 573,536.00 100.00% Aging long
Grateful Textiles Co.,Ltd 566,661.00 566,661.00 100.00% Aging long
Shenzhen Fangzhou
468,502.00 468,502.00 100.00% Aging long
Textiles Co., Ltd.
World Fabrica (Int'l) Ltd 465,126.00 465,126.00 100.00% Aging long
Ezhou Xiangya Clothing
368,943.00 368,943.00 100.00% Aging long
Co., Ltd.
Tak Shing Buying Office
333,502.00 333,502.00 100.00% Aging long
Led
Shenye Union （HK）
299,354.00 299,354.00 100.00% Aging long
Co.., Ltd.
Panther Fabric Ltd. 295,088.00 295,088.00 100.00% Aging long
Changshu Zhongjiang
Clothing Import & 283,539.00 283,539.00 100.00% Aging long
Export Co., Ltd.
Starline Textile CO.Ltd. 282,234.00 282,234.00 100.00% Aging long
Nissho Iwai HK Corp
215,229.00 215,229.00 100.00% Aging long
Ltd.
Unimix Ltd. 192,891.00 192,891.00 100.00% Aging long
Tai Hing Linings Co Ltd 191,295.00 191,295.00 100.00% Aging long
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Human Changpuan
185,981.00 185,981.00 100.00% Aging long
Garment
Ningbo Youngor Fuchun
181,490.00 181,490.00 100.00% Aging long
Uniforms Co., Ltd.
Win favour development
146,600.00 146,600.00 100.00% Aging long
ltd
Speedy Textiles Co 146,502.00 146,502.00 100.00% Aging long
Lin Feng Textile Co. 135,686.00 135,686.00 100.00% Aging long
Jicheng Cotton Co., Ltd. 131,954.00 131,954.00 100.00% Aging long
Millionaire(HK)Weaving
124,249.00 124,249.00 100.00% Aging long
Ltd.
Leader Day Ltd. 121,930.00 121,930.00 100.00% Aging long
Tex Mate Fabrics (HK) 110,024.00 110,024.00 100.00% Aging long
New Design Textiles Ltd. 109,178.00 109,178.00 100.00% Aging long
Deep Success Industrial
102,606.00 102,606.00 100.00% Aging long
Ltd
Wynvaye Industrial Co 101,030.00 101,030.00 100.00% Aging long
ACTSUNLTD. 89,613.00 89,613.00 100.00% Aging long
Tamurakoma Co Ltd. 77,828.00 77,828.00 100.00% Aging long
International Textiles Co 65,461.00 65,461.00 100.00% Aging long
Shenzhen Hongtian
59,380.00 59,380.00 100.00% Aging long
Cloth Trade Co., Ltd.
Ho Cheong Textiles Ltd 54,607.00 54,607.00 100.00% Aging long
Origin Textiles Co Ltd. 54,156.00 54,156.00 100.00% Aging long
Wing Fook Piecegoods
50,389.00 50,389.00 100.00% Aging long
Co.,Ltd
Wing Shum Piecesgoods
49,905.00 49,905.00 100.00% Aging long
Co Ltd.
Gold Eagle Textiles
47,588.00 47,588.00 100.00% Aging long
Limited
Tangshan Lifeng
45,761.00 45,761.00 100.00% Aging long
Garment Co., Ltd.
Charman Trading Co 43,852.00 43,852.00 100.00% Aging long
Atex Trading Co 43,847.00 43,847.00 100.00% Aging long
Gloden Glory Textiles
40,322.00 40,322.00 100.00% Aging long
Ltd
Yu Fat Piecegoods 39,603.00 39,603.00 100.00% Aging long
77
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Co.,Ltd
Fuji Industrial Co 39,152.00 39,152.00 100.00% Aging long
Other 923,633.00 923,633.00 100.00% Aging long
Total 8,626,416.00 8,626,416.00 -- --
（2）Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s shares in
the report period.
In RMB
Year-end balance Year-beginning balance
Name
Book Balance Amount Book Balance Amount
None
（3）The front 5 units’ information of account receivable
In RMB
Relation with the Portion in total
Name Amount Ages
Company receivables (%)
Victor Onward
Non- related parties 1,851,841.00 Over 3 years 14.71%
Textile(HK)Co., Ltd.
Carnival Index
Non- related parties 1,098,549.00 Over 3 years 8.73%
International Ltd
TAI YANG
Non- related parties 1,010,046.00 Over 3 years 8.02%
ENTERPRISE CO.,LTD.
VEGA CARMENT CO.
Non- related parties 768,189.00 Over 3 years 6.10%
Ltd
Fly Dragon International Non- related parties 573,536.00 Over 3 years 4.56%
Total -- 5,302,161.00 -- 42.12%
（4）Account receivable from Related parties
In RMB
Portion in total receivables
Name Relation with the company Amount
account(%)
Shenye Union（HK）Co., The related parties controlled
299,354.00 2.38%
Ltd. the same Actual controller
Total -- 299,354.00 2.38%
5.. Other receivable
1.Type analyses:
78
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
In 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 76.36% 3,368,370.00 100.00% 3,368,370.00 72.15% 3,368,370.00 100.00%
and had debt provision
provided individually
Other receivables provided bad debt provision in groups
Account age group 54,318.00 1.23% 311,279.00 6.67%
Subtotal of group 54,318.00 1.23% 311,279.00 6.67%
Other account receivable
with minor individual
988,643.00 22.41% 988,643.00 100.00% 988,643.00 21.18% 988,643.00 100.00%
amount but bad debt
provision is provided
Total 4,411,331.00 -- 4,357,013.00 -- 4,668,292.00 -- 4,357,013.00 --
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
In RMB
Description Book balance Amount of bad debts Rate（%） Reason
Nanjing East Asia 1,313,370.00 1,313,370.00 100.00% Aging long
CCB.Guangdong Shunde
1,080,000.00 1,080,000.00 100.00% Aging long
Branch
Changzhou Dongfeng
Textile Printing & dyeing 975,000.00 975,000.00 100.00% 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
In RMB
79
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Content Book balance Bad debt Provision Rate（%） Reason
HongKong Victor
673,005.00 673,005.00 100.00% Aging long
Onward
Shanghai Huayinke
180,000.00 180,000.00 100.00% Aging long
Trade Industry Co., Ltd.
Shenzhen Environmental Aging long
Management System 35,000.00 35,000.00 100.00%
Certification Center
Shenzhen Design
Institute of Ministry of
30,000.00 30,000.00 100.00% Aging long
Machinery Industry
Shanghai Branch
Other 70,638.00 70,638.00 100.00% Aging long
Total 988,643.00 988,643.00 -- --
（2）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company’s
shares in the report period.
In RMB
Balance at the period end Balance in year-begin
Name Amount of bad debt Amount of bad debt
Book amount Book amount
provision provision
None
（3）The front 5 units’ information of other account receivable
In RMB
Relation with the Portion in total other
Name Amount Ages
company receivables(%)
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 24.48%
Branch
Nanjing East Asia Non-Related parties 1,313,370.00 Over 3 years 29.77%
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 22.10%
Equipment Co., Ltd.
HongKong Victor
Non-Related parties 673,005.00 Over 3 years 15.26%
Onward
Shanghai Huayinke
Non-Related parties 180,000.00 Over 3 years 4.08%
Trade Industry Co., Ltd.
80
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total -- 4,221,375.00 -- 95.69%
6.Prepayments
（1）Prepayments age :
In RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 13,230.00 100.00% 25,192.00 100.00%
Total 13,230.00 -- 25,192.00 --
Notes to age of payment in advance:
（2） The front 5 units’ information of Prepayments
In RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
Insurance Non-Related parties 4,734.00 Within 1 year Not settlement
Vehicle license fees Non-Related parties 3,303.00 Within 1 year Not settlement
Repair fee Non-Related parties 3,581.00 Within 1 year Not settlement
Registered fees Non-Related parties 1,612.00 Within 1 year Not settlement
Total -- 13,230.00 -- --
Notes
(3)Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the report
period.
In RMB
Amount at period-end Amount at period-beginning
Name
Book balance Bad debt Provision Book balance Bad debt Provision
N/A
7．Inventory
（1）Inventory types
In RMB
81
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 460,344.00 460,344.00 460,344.00 460,344.00
Total 460,344.00 460,344.00 460,344.00 460,344.00
（2）Inventory Impairment provision
In 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 460,344.00 460,344.00
Total 460,344.00 460,344.00
8. Disposable financial asset
（1）Sellable financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
Available-for-sale equity instruments 604,282.00 582,942.00
Total 604,282.00 582,942.00
The amount of investment held to mature categorized to sellable financial assets was RMB 0 , Account for 0% of
total investment held to mature.
Statement on sellable financial assets:
9.Long-term equity investment
（1）Details of long-term equity investment
In RMB
Explanati
on of
Sharehold Voting difference
Accounti Initial ing right between
Original Ending Current Cash
Name ng investmen change proportio proportio sharehold Devalue
balance Balance devalue bonus
method t cost n in the n in the ing
investee investee proportio
n and
voting
82
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
right
proportio
n in
investee
Zhejiang
Union
Hangzho Equity 58,588,40 66,931,68 1,298,507 68,230,19
25.00% 25.00% 0.00 0.00 0.00
u Bay method 3.00 5.00 .00 2.00
Chuangye
Co., Ltd.
58,588,40 66,931,68 1,298,507 68,230,19
Total -- -- -- -- 0.00 0.00 0.00
3.00 5.00 .00 2.00
10.Investment real estate
（1）Measured by the cost of investment in real estate
In RMB
Items Book amount at year Increase at this period Decrease at this period Book balance in year -end
beginning
87,418,909.00 573,002.00 396,597.00 87,595,314.00
1. Total original price
87,418,909.00 573,002.00 396,597.00 87,595,314.00
1.House, Building
II.Total accumulated
depreciation
63,960,756.00 1,795,624.00 356,937.00 65,399,443.00
accumulated
amortization
63,960,756.00 1,795,624.00 356,937.00 65,399,443.00
1.House, Building
III. Total book value
23,458,153.00 -1,222,622.00 39,660.00 22,195,871.00
of investment real
estate
23,458,153.00 -1,222,622.00 39,660.00 22,195,871.00
1.House, Building
V. Total book value of
23,458,153.00 -1,222,622.00 39,660.00 22,195,871.00
investment real estate
83
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
1.House, Building 23,458,153.00 -1,222,622.00 39,660.00 22,195,871.00
In RMB
This period
Current amount of depreciation and amortization 1,795,624.00
Accrual amount of impairment provision for investment properties of
0.00
thecurrent period
11. Fixed assets
（1）Fixed assets
In 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
60,842,374.00 193,740.00 60,648,634.00
fixed assets
Including ：House and
48,083,878.00 48,083,878.00
building
Machine equipment 321,521.00 321,521.00
Transpiration Equipment 4,021,537.00 193,740.00 3,827,797.00
Office Equipment and other 8,415,438.00 8,415,438.00
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
35,443,480.00 132,060.00 162,770.00 35,412,770.00
depreciation
Including ：House and
26,564,871.00 26,564,871.00
building
Machine equipment 289,437.00 289,437.00
Transpiration Equipment 3,233,386.00 44,865.00 162,770.00 3,115,481.00
Office Equipment and other 5,355,786.00 87,195.00 5,442,981.00
Book balance in Balance in
-- --
year-begin year-end
III. Total book value of
25,398,894.00 -- 25,235,864.00
Fixed assets
Including ：House and
21,519,007.00 -- 21,519,007.00
building
Machine equipment 32,084.00 -- 32,084.00
Transpiration Equipment 788,151.00 -- 712,316.00
84
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Office Equipment and other 3,059,652.00 -- 2,972,457.00
IV. Total of Devalued
18,207,689.00 -- 18,207,689.00
Provision
Including ：House and
15,466,004.00 -- 15,466,004.00
building
Transpiration Equipment 50,276.00 -- 50,276.00
Office Equipment and other 2,691,409.00 -- 2,691,409.00
V. Total book value of Fixed
7,191,205.00 -- 7,028,175.00
assets
Including ：House and
6,053,003.00 -- 6,053,003.00
building
Machine equipment 32,084.00 -- 32,084.00
Transpiration Equipment 737,875.00 -- 662,040.00
Office Equipment and other 368,243.00 -- 281,048.00
Current depreciation is RMB 132,060.00 . The issue of fixed assets transferred from construction in progress
original price is RMB 0.
12. Intangible assets
（1） Intangible assets
In 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
10,976,101.00 20,153.00 10,996,254.00
accumulated
10,535,678.00 20,153.00 10,555,831.00
Land Use right
Software 440,423.00 440,423.00
III. Book value of intangible
2,047,619.00 -20,153.00 2,027,466.00
assets
1,820,459.00 -20,153.00 1,800,306.00
Land Use right
Software 227,160.00 227,160.00
85
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
IV.Total value of provision
227,160.00 227,160.00
for impairment
Land Use right
Software 227,160.00 227,160.00
V. Total Book value of
1,820,459.00 -20,153.00 1,800,306.00
intangible assets
1,860,764.00 -20,153.00 1,800,306.00
Land Use right
Software
The amortization amount is 20,153.00.
13.Goodwill
In RMB
Name of the investee or the Balance in Increase at this Decrease at this Balance in Ending devalue
matter of forming Goodwill year-begin period period year-end provision
For the goodwill formed from
holding shares of Nanhua 5,099,624.00 5,099,624.00
Company,
Total 5,099,624.00 5,099,624.00
Statement of basis for impairment testing and provision of goodwill：
14. Deferred income tax assets and deferred income tax liability
(1)Confirmed the deferred income tax assets and deferred income tax liability
Recognized deferred income tax assets and deferred income tax liabilities
In RMB
Items Year-end balance Year-beginning balance
Deferred income tax assets:
Deferred income tax liability：
Assessed tax-free periods of time caused by
669,475.00 702,735.00
differences in income
Subtotal 669,475.00 702,735.00
Details of the un-recognized deferred income tax assets
In 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
In RMB
86
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Year At end of term At beginning of term Notes
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Revaluation of assets 4,057,424.00 4,259,000.00
Subtotal 4,057,424.00 4,259,000.00
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：
In 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： 669,475.00 702,735.00
Details of taxable differences and deductible differences
In RMB
Items Offsetting Amounts of This Period
Details of taxable differences and deductible differences
15. Provision for depreciation of assets
In RMB
Decreased in this period
Book balance at the Increase in this Balance in
Items Switch
beginning of term period Switch back year-end
cancellation
I.Provision for bad debts 16,943,865.00 16,943,865.00
2 Inventory impairment
460,344.00 460,344.00
provision
5. Long-term equity
investment impairment 0.00 0.00
provision
7.Fixed asset impairment
18,207,689.00 18,207,689.00
provision
87
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
12. Intangible asset
227,160.00 227,160.00
impairment provision
Total 35,839,058.00 35,839,058.00
Notes
16. Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Over 1 year 3,199,529.00 3,186,939.00
Total 3,199,529.00 3,186,939.00
(2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares of
the company
In RMB
Name Balance in year-end Balance in year-begin
N/A
(3)The description of large-sum accounts payable with the age over 1 year:
1.Accounts payable with age over one year included a number of accounts, without single significant amount of
accounts payable.
2. Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s shares
3.Account payables of foreign currency balances
Name Amount at period-end Amount at period-beginning
Former currency Converting RMB Former currency Converting rate RMB
rate
HKD 324,942 0.78623 255,479 324,942 0.81090 263,495
Total 255,479 263,495
17. Advance account
1. Advance account
In RMB
Items Balance in year-end Balance in year-begin
Over 1 year 1,076,979.00 1,076,531.00
Total 1,076,979.00 1,076,531.00
（2）There was Advance account due from shareholders with More than 5% (including 5%) of the voting
shares of the company.
In RMB
Items Balance in year-end Balance in year-begin
88
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
N/A
（3）The description of large-sum accounts payable with the age over 1 year:
1.Particulars about the receivable accounts due from shareholders with 5% (5%)or over of the Company’s shares
2. Advance account of foreign currency balances
Name Amount at period-end Amount at period-beginning
Former Converting rate RMB Former Converting rate RMB
currency currency
USD 96,411 6.1528 593,198 96,411 6.0969 587,808
Total 593,198 587,808
18. Payable Employee wage
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
allowances and 618,756.00 694,507.00 800,219.00 513,044.00
subsidies
3. Social insurance
6,392.00 102,136.88 108,528.88
premiums
Basic old-age
insurance 102,136.88 102,136.88
premiums
Supplementary
6,392.00 6,392.00
pension insurance
IV. Public reserves
34,115.00 34,115.00
for housing
VI.Other 484,204.00 74,004.00 50,207.00 508,001.00
Union funds and
staff education 377,093.00 74,004.00 451,097.00
fee
Total 1,109,352.00 904,762.88 993,069.88 1,021,045.00
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 RMB0.00, the amounts of non-monetary
benefits are RMB 0.00, and the compensations for the lifting of labor relations is RMB0.00.
The wages payable expected to pay and the amount for payment:
19. Tax Payable
In RMB
89
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Items At end of term At beginning of term
VAT -137,711.00 -137,711.00
Business Tax 147,341.00 205,449.00
Enterprise Income tax 3,620,547.00 3,590,695.00
City Construction tax 10,314.00 17,697.00
Educational surtax 4,420.00 7,584.00
Local education surcharges 2,947.00 5,056.00
House property Tax 187,320.00 187,320.00
Land use tax 144,957.00 144,957.00
Stamp Tax 229,144.00 229,144.00
Total 4,209,279.00 4,250,191.00
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.
20.Dividend payable
In 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*1
Co., Ltd*2
CITIC Group*2 243,189.00 243,189.00 Capital tense*1
Shenzhen Nanyou (Group)
121,595.00 121,595.00 Capital tense*1
Company*2
Shenye Union（Hongkong）Co., Ltd. 121,595.00 121,595.00 Capital tense*1
HongKong Victor Onward 486,378.00 486,378.00 Capital tense*1
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,
Because Nanhuan Company’s capital was more tension and the shareholders did not ask for the fund, the payable
dividends have not been paid.
*2 The above three companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
21. Other payable
（1）Other payable
In RMB
Name Balance in year-end Balance in year-begin
Thereinto :Over 1 year 16,781,726.00 22,663,345.00
90
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Within 1 year 30,000,000.00
Total 46,781,726.00 22,663,345.00
（2）Explanation on other account payable with over one year age
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
Deposit 30,000,000 Within 1 year Deposit
Union 9,011,866 Over 3 years Loan and Interest
Development
Group
State 3,000,000 Over 3 years Current account
Development
& Investment
Co., Ltd
Jinrongyuan 1,100,000 Over 3 years Property Deposit
Company
Shenzhen 700,734 Over 3 years Loan and Interest
Union
Property
Group Co.,
Ltd.
Total 43,812,600
Paid Union Group loan principal RMB 6,291,274.60 in current period.
22.Other current liabilities
In RMB
Items Year-end balance Year-Beginning balance
Audit fees 1,170,917.00 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 1,322,263.00 1,547,263.00
Statement of other current liabilities：
91
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
23. Long-term loan
（1）Long-term loans classifications
In RMB
Items Year-end balance Year-Beginning balance
Loan by pledge 1,050,038.00 1,101,349.00
Total 1,050,038.00 1,101,349.00
Statement on long-term borrowings.
The borrowing was the installment payment for the bousing in Hongkong bought by the subsidiary of the
Company Xingye Company , the mortgage article was the house purchased. The installment payment was HKD 2,
366,000, Which paid in 240 month, from March, 2004. Mortgage rates fall 2.65 percent compared to HK
mortgage bank prime rate. As of June 30,, 2014, the principal amount of HK $ 1,322,882 (equivalent to RMB
1,050,038 Yuan) was unpaid.
24.Long-term payable
（1）Top 5 long-term payable
In RMB
Name Term Initial amount Interest rate（%） Interest payable End balance Condition
Assess the Unlimited
8,230,694.00 8,309,417.00
value of assets duration
（2）Details of finance leasing payments in long-term payable
In RMB
End of term Beginning of term
Name
Foreign currency RMB Foreign currency RMB
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.
92
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
25.Other Non-current liabilities
In 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
Statement on other non-current liabilities
Liabilities related to government grants
In RMB
The
Balance at the New grants Balance at
non-operating Other Income related to
Liabilities beginning of amount of the end of
revenue amount changes assets
period this period period
of this period
26. Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
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 assets is required for the years prior to incorporation; for shareholding limited
companies reformed from limited companies shall provide the capital verification at incorporation.
27. Capital reserves
In 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 9,926,219.00 15,764.00 9,941,983.00
Total 39,645,048.00 15,764.00 39,660,812.00
Statement on capital reserves：
The capital surplus change this year refers to the change of fair value for the financial assets available to sale
93
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
this year.
28. Surplus reserve
In 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
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：
29. Retained profits
In RMB
Extraction or distribution of
Items Amount
the proportion
After adjustments: Retained profits at the period
-108,059,131.00 --
beginning
Add：Net profit belonging to the owner of the
738,330.00 --
parent company
Retained profits at the period end -107,320,801.00 --
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.
94
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
30. Business income, Business cost
（1）Business income, Business cost
In RMB
Items Amount of current period Amount of previous period
Income from Business income 5,077,451.00 4,990,626.00
Business cost 1,446,029.00 2,073,313.00
（2）Main business（Industry）
In RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
Total 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
（3）Main business（Production）
In RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
Total 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
（4）Main Business（Area）
In RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
Hong Kong
Total 5,077,451.00 1,446,029.00 4,990,626.00 2,073,313.00
（5）Total income and the ratio of operating income from top five clients
In RMB
Name Business Income Proportion(%)
Shenzhen Jinrongyuan 2,961,000.00 58.32%
95
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Development Co., Ltd.
SCSExpress International Limited 463,749.00 9.13%
Shenzhen Hebainian Investment
300,000.00 5.91%
Development Co., Ltd.
Shenzhen Nanshan Saint Laurent
264,600.00 5.21%
Wedding Photography
HIP SENG 236,997.00 4.67%
Total 4,226,346.00 83.24%
Notes
31. Business tax and subjoin
In RMB
Items Same period of the Standard
Report period previous year
Business tax 228,697.00 205,952.00 5%
Urban construction tax 16,008.00 14,417.00 7%
Education surcharge 6,861.00 6,178.00 3%
Local Education surcharge 4,574.00 4,119.00 2%
Total 256,140.00 230,666.00 --
Notes
32. Investment income
（1）Investment income
In RMB
Items Amount of current period Amount of previous period
Incomes from disposal of long-term equity
857,157.00 -71,083.00
investment
Total 857,157.00 -71,083.00
（2）long-term equity investment incomes confirmed by equity method include:
In RMB
Amount of current period Amount of previous
Name Reason to increase or decrease
period
Hangzhou Bay Company 857,157.00 -71,083.00 Due to the income increased
Total 857,157.00 -71,083.00 --
Statement on investment gains, please state whether or not there are material constrains on retrieving of
96
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
investment gains.
33. Non-operating income
（1）Non-operating income
In 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
non-current assets
Including：Income from liquidation of
3,929.00
fixed asset
Total 3,929.00
Notes
34. Non-Operation expense
In 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 1,918.00 19,043.00
Lawsuit expenses 2,400,000.00
Total 1,918.00 2,419,043.00
Notes
35. 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 of parent 1 738,330 -4,123,606
company
Non-recurring gain/loss attributable of the parent 2 -1,918 -2,415,114
company
Net profit attributable to common share holders 3=1-2 740,248 -1,708,492
of the Company after deducting of non-recurring
gain/loss
Total shares at the beginning of the year 4 169,142,356 169,142,356
Additional share capital transferred from public 5 —— ——
reserve or additional shares from shares dividend
distribution（Ⅰ）
Additional shares from issuing new shares or 6 —— ——
97
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
debt-converted shares（Ⅱ）
Accumulative months of the additional share 7 —— ——
commencing from the next moth till the end of
the year
Decreased shares due to repurchase 8 —— ——
The number of months since the next month of 9 —— ——
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 issued 12=4+5+6×7÷11 169,142,356 169,142,356
outside -8×9÷11-10
Basic earning pershare（Ⅰ） 13=1÷12 0.004 -0.02
Basic earning pershare（Ⅰ）（Ⅱ） 14=3÷12 0.004 -0.01
Diluting potential common share interests 15 —— ——
recognized as expenses
Transformation fees 16 —— ——
Income tax rate 17 25% 25%
Amount of shares increased by transforming or 18 —— ——
exercising of company bond, subscription
certificate, or share option
Diluted earning per share（Ⅰ） 19=[1+(15-16)×(1-17 0.004 -0.02
)]÷(12+18)
Diluted earning per share（Ⅱ） 19=[3+(15-16)×(1-17 0.004 -0.01
)]÷(12+18)
36. Other comprehensive income
In RMB
Items Amount of current period Amount of previous period
1.Loss amount produced by sellable financial assets 15,764.00 -126,556.00
Subtotal 15,764.00 -126,556.00
4. Translating difference in foreign currency financial reports 246,825.00 -482,695.00
Subtotal 246,825.00 -482,695.00
Total 262,589.00 -609,251.00
Notes
98
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
37. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
-- --
I. Adjusting net profit to cash flow from operating activities
Net profit 738,330.00 -4,123,606.00
Depreciation of fixed assets, oil and gas assets and
132,060.00 121,945.00
consumable biological assets
Amortization of intangible assets 20,153.00 20,153.00
Loss on disposal of fixed assets, intangible assets and other
1,918.00 15,114.00
long-term deferred assets
Financial cost -58,719.00 273,998.00
Loss on investment -857,157.00 71,083.00
Decease of operating receivables 1,848,263.00 1,619,922.00
Increased of operating Payable 883,366.00 3,950,831.00
Net cash flows arising from operating activities 2,708,214.00 1,949,440.00
II. Significant investment and financing activities that
-- --
without cash flows:
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 60,249,062.00 48,768,467.00
Less: Beginning balance of cash 63,502,910.00 52,227,262.00
Net increase of cash and cash equivalents -3,253,848.00 -3,458,795.00
（2）Composition of cash and cash equivalents
In RMB
Items Amount of current period Amount of previous period
60,249,062.00 63,502,910.00
I. Cash
58,423.00 41,613.00
Of which: Cash in stock
Bank savings could be used at any time 59,519,939.00 62,791,183.00
Other monetary capital could be used at any time 5,670,700.00 670,114.00
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
III. Balance of cash and cash equivalents at the period end 60,249,062.00 63,502,910.00
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
Import &
export
business
Union ―processing
Limited Bulding,She with
Union Actual Dong Union 19033795-
liability nnan Zhong materials‖ 90,606,000 3.36% 3.36%
Group controller Bingen Group 7
Company Road, and
Shenzhen processing
with
imported
materials
Notes
1.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
2.Shares or equity held by the parent company and changes
100
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Name Held share amount Held share proportion（%）
Amount at year Amount at year Proportion at year Proportion at year beginning %
end beginning end %
Union Group 5,681,089 5,681,089 3.36 3.36
Union Holding 43,141,032 43,141,032 25.51 25.51
*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
2.Particulars of the subsidiaries
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 HK Trade 100.00% 100.00%
（HKD）
Onward s Company
Limited
Nanhua Controlled Hu 85,494,700
Liability Shenzhen Product 69.44% 69.44% 618836600
Company subsidiaries Yongfeng （HKD）
Company
Shenzhen Controlled Limited
East Asia subsidiarie Liability Shenzhen Sun Zhiping Trade 3,000,000 51.00% 51.00% 799228355
Company s Company
Limited
Shengzhong Controlled 1,000,000
Liability HK Trade 100.00% 100.00%
Co., Ltd. subsidiaries （HKD）
Company
Limited
Xingye Controlled 10,000
Liability HK Trade 100.00% 100.00%
Company subsidiaries （HKD）
Company
3. Information of Joint venture and Affiliated company
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
101
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Real estate
Exploiters,
Basis
Zhejiang constructio
Limited
Union Dong n 247,476,832 Affiliated
Liability Hanghou 25.00% 25.00% 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
5. Related transactions.
（1）Related leasing
The Company is the lender
In 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
In 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 Agreement Price 83,520.00
2012
Notes
On November 2012, 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
102
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RMB 6,960. The rent was determined according to market price.
6. Payables and receivables of the related party
Listed company related party fund
In 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 299,354.00 299,354.00 299,428.00 299,428.00
Co., Ltd.
The listed company Payables of the related party
In RMB
Amount at year end Amount at year beginning
Name Related party
Other payable Union Development Group 9,011,866.00 15,303,141.00
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 RMB47,922,9023 to the company for the pecuniary loss of implicative
compensation and undertake the costs of litigation. As of June 30, 2014, Jiangsu Higher People's Court did not
give a judgement.
X. Commitment events.
1.Importance commitment events
1.The external investment contracts and the related financial expenditures which have signed or not yet
completely fulfilled.
As of June 30, 2014,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
103
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Invest Nanjing East Asia RMB 30 milli --- RMB 30 million
Can not be relocated
Textile Co., Ltd with on
Unsureness because the fields
machinery and equipments
uncompleted
2.The big contract which has been signed or is ready to be carried out
As of June 30, 2014, 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
location of 1,710,000 855,000 855,000
Can not be relocated
production
Unsureness because the fields
equipments as a
whole uncompleted
3.Except for the events described above, As of June 30, 2014, the Group has no other significant commitment
events.
2. Information guaranteed at the former period.
The company has no commitment information guaranteed at the former period.
XI. Post-balance-sheet events
1. Statement on material post-balance-sheet events
In RMB
Amount of effect on the
Reasons that the amount of the
Items Content financial status and operating
effect can not be estimated
outcomes
None
2.Other explanation after balance sheet date.
XII.Other Important events
1. Leasing
Operation lease assets
Type Year-end balance Year-beginning balance
Cost 87,595,314 87,418,909
104
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
House, Building 87,595,314 87,418,909
Accumulated amortization 65,399,443 63,960,756
House, Building 65,399,443 63,960,756
Impairment provision
House, Building —— ——
Book value 22,195,871 23,458,153
House, Building 22,195,871 23,458,153
2.Items related to measurement of fair value
In 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 582,942.00 21,340.00 604,282.00
Subtotal 582,942.00 21,340.00 604,282.00
Total 582,942.00 21,340.00 604,282.00
Financial liability 0.00 0.00
3.Foreign financial assets and foreign financial liability
In RMB
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 582,942.00 21,340.00 604,282.00
Subtotal of financial
582,942.00 21,340.00 604,282.00
assets
Financial liability 0.00 0.00
4.Other
Description of continuous viability：
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
105
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
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 30,2014, Jiangsu Higher People's Court did not give a judgement.
The Company developed measures to improve the continous viability as the following：
Controlling shareholder of the Company and the management of the company attaches greatimportance to
the company’s continued operational problems, through a wariety of ways, including saling the assets and
business of the company or its subsidiaries, joint venture or expand an existing business, aiming to improve the
company asset quality, iprofitability, and enhance capacity for sustainable development .
XIII.Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
In 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
significant specific
30.27 100.00 100.00
amount that were 3,461,028.00 3,461,028.00 3,461,028.00 30.27% 3,461,028.00
% % %
provisioned had debt
preparation separately
Receivables provided bad debt provision in groups
Account receivable with
minor individual amount 69.73 100.00 100.00
7,974,647.00 7,974,647.00 7,974,647.00 69.73% 7,974,647.00
but bad debt provision is % % %
provided
106
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total 11,435,675.00 -- 11,435,675.00 -- 11,435,675.00 -- 11,435,675.00 --
Remarks on categories of receivable accounts：
Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □ Not applicable
In RMB
Description of receivable accounts Book balance Bad debt provision Proportion Reason
Shengzhong Company 1,352,433.00 1,352,433.00 100.00% Aging long
Carnival Index International Ltd 1,098,549.00 1,098,549.00 100.00% Aging long
The company insol
TAI YANG ENTERPRISE CO.,LTD. 1,010,046.00 1,010,046.00 100.00% vent, to be cance
led
Total 3,461,028.00 3,461,028.00 -- --
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
In RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Fly Dragon International 573,536.00 573,536.00 100.00% Aging long
Grateful Textiles Co.,Ltd 566,661.00 566,661.00 100.00% Aging long
Shenzhen Fangzhou Aging long
468,502.00 468,502.00 100.00%
Textiles Co.,Ltd
World Fabrica (Int'l) Ltd 465,126.00 465,126.00 100.00% Aging long
Ezhou Xiangya Aging long
368,943.00 368,943.00 100.00%
Garments Co., Ltd.
Tak Shing Buying Office Aging long
333,502.00 333,502.00 100.00%
Led
Shenye Union（HK） Aging long
299,354.00 299,354.00 100.00%
Co.,Ltd.
Panther Fabric Ltd. 295,088.00 295,088.00 100.00% Aging long
Changshu Zhongjiang Aging long
283,539.00 283,539.00 100.00%
Garments Import &
107
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Export Co., Ltd.
Starline Textile CO.Ltd. 282,234.00 282,234.00 100.00% Aging long
Nissho Iwai HK Corp Aging long
215,229.00 215,229.00 100.00%
Ltd.
Unimix Ltd. 192,891.00 192,891.00 100.00% Aging long
Tai Hing Linings Co Ltd 191,295.00 191,295.00 100.00% Aging long
Human Changpuan Aging long
185,981.00 185,981.00 100.00%
Garment
Ningbo Youngor Aging long
181,490.00 181,490.00 100.00%
Fukurmura Uniforms
Win favour development Aging long
146,600.00 146,600.00 100.00%
ltd
Speedy Textiles Co 146,502.00 146,502.00 100.00% Aging long
Lin Feng Textile Co. 135,686.00 135,686.00 100.00% Aging long
Jicheng General Co., Ltd 131,954.00 131,954.00 100.00% Aging long
Millionaire(HK)Weaving Aging long
124,249.00 124,249.00 100.00%
Ltd.
Leader Day Ltd. 121,930.00 121,930.00 100.00% Aging long
Tex Mate Fabrics (HK) 110,024.00 110,024.00 100.00% Aging long
New Design Textiles Ltd. 109,178.00 109,178.00 100.00% Aging long
Deep Success Industrial Aging long
102,606.00 102,606.00 100.00%
Ltd
Wynvaye Industrial Co 101,030.00 101,030.00 100.00% Aging long
Other 1,841,517.00 1,841,517.00 100.00% Aging long
Total 7,974,647.00 7,974,647.00 -- --
（2） The front 5 units’ information of the account receivable
In RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Shengzhong Company Subsidiary 1,352,433.00 Over 3 years 11.83%
Carnival Index
Non-related parties 1,098,549.00 Over 3 years 9.61%
International Ltd
TAI YANG
Non-related parties 1,010,046.00 Over 3 years 8.83%
ENTERPRISE CO.,LTD.
Fly Dragon International Non-related parties 573,536.00 Over 3 years 5.02%
Grateful Textiles Co.,Ltd Non-related parties 566,661.00 Over 3 years 4.96%
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total -- 4,601,225.00 -- 40.25%
（3）Account receivable from Related parties
In RMB
Unit name Relation with the company Amount Percentage of account receivable
Shengzhong Company Subsidiary 1,352,433.00 11.83%
Shenzhen East Asia Subsidiary 63,982.00 0.56%
The related parties controlled
Shenye Union（HK）Co., Ltd. 299,353.00 2.62%
the same Actual controller
Total -- 1,715,768.00 15.01%
2.Other receivable
（1）Other receivable
In 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 98.64 98.78
85,159,953.00 3,881,909.00 4.56% 84,734,453.00 3,881,909.00 4.58%
bad debt provision provided % %
individually
Other Receivables provided bad debt provision in groups
Deposit group 242,496.00 0.28% 114,832.00 0.13%
Subtotal of group 242,496.00 0.28% 114,832.00 0.13%
Other Account receivable
with minor individual 100.0 100.0
928,995.00 1.08% 928,995.00 928,995.00 1.08% 928,995.00
amount but bad debt 0% 0%
provision is provided
Total 86,331,444.00 -- 4,810,904.00 -- 85,778,280.00 -- 4,810,904.00 --
Statement on Other receivable:
Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □not Applicable
In RMB
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Description of other
Book balance Bad debt provision Proportion Reason
receivable accounts
Victor Onward
57,901,294.00 ---
Textile(HK)Co., Ltd.
Nanhua Company 23,376,750.00 ---
The company
Shenzhen East Asia 513,539.00 513,539.00 100.00% insolvent, to be
canceled
CCB.Guangdong Shunde
1,080,000.00 1,080,000.00 100.00% Aging long
branch
Changzhou Dongfeng Aging long
Textile Printing & dyeing 975,000.00 975,000.00 100.00%
Equipment Co., Ltd.
Nanjing East Asia 1,313,370.00 1,313,370.00 100.00% Aging long
Total 85,159,953.00 3,881,909.00 -- --
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
In RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Victor Onward
Textile(HK)Co., 673,005.00 673,005.00 100.00% Aging long
Ltd.
Shanghai Huayinke
Trade Industry Co.,
180,000.00 180,000.00 100.00% Aging long
Ltd.
Shenzhen
Environmental
35,000.00 35,000.00 100.00% Aging long
Management System
Certification Center
Shenzhen Design
30,000.00 30,000.00 100.00% Aging long
Institute of Ministry
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
of Machinery
Industry Shanghai
Branch
Other 10,990.00 10,990.00 100.00% Aging long
Total 928,995.00 928,995.00 -- --
（2） The front 5 units’ information of Other account receivable
In RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Victor Onward Subsidiary
57,901,294.00 Over 3 years 67.07%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 23,376,750.00 Over 3 years 27.08%
Nanjing East Asia Non-Related parties 1,313,370.00 Over 3 years 1.52%
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 1.25%
Branch
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 1.13%
Equipment Co., Ltd.
Total -- 84,646,414.00 -- 98.05%
(3)The Other accounts receivable from the Related parties
In RMB
Name Relation with the Company Amount Proportion(%)
Victor Onward
Subsidiary 57,901,294.00 67.07%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 23,376,750.00 27.08%
Shenzhen East Asia Subsidiary 513,539.00 0.59%
Total -- 81,791,583.00 94.74%
3. .Long –term stocks equity investment
In RMB
Explanati
on of
Sharehold Voting diffidence
Accounti Initial ing right between
Original Ending Current Cash
Name ng investmen change proportio proportio sharehold Devalue
balance Balance devalue bonus
method t cost n in the n in the ing
investee investee proportio
n and
voting
111
深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
right
proportio
n in
investee
Victor
Onward
Cost 2,411,282 21,214,21 21,214,21
Textile(H 100.00% 100.00% 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
51.00% 51.00% 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 and business cost
In RMB
Items Amount of current period Amount of previous period
Income from Business income 1,041,445.00 908,470.00
Total 1,041,445.00 908,470.00
Business cost 168,586.00 168,586.00
（2）Main business（Production）
In RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rent 1,041,445.00 168,586.00 908,470.00 168,586.00
Total 1,041,445.00 168,586.00 908,470.00 168,586.00
（3）Total income and the ratio of operating income from top five clients
In RMB
Name Business Income Proportion(%)
Liang Lengcheng 264,600.00 25.41%
Juntaihao Investment Development 190,000.00 18.24%
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Shen Victor Onward Technology 72,000.00 6.91%
Zhong Shuixiong 60,000.00 5.76%
Xia Yi 51,000.00 4.90%
Total 637,600.00 61.22%
Notes
5. Supplement information of Consolidated Flow Statement
In RMB
Items Amount of current
Amount of previous period
period
1. Adjusting net profit to net cash flow in operating activities: -- --
Net profit -517,948.00 -3,659,586.00
Depreciation of fixed assets, oil and gas assets and consumable
28,098.00 26,927.00
biological assets
Amortization of intangible assets 20,153.00 20,153.00
The losses on the disposal of fixed assets, intangible assets and other
4,927.00
long-term assets
Financial cost -861,200.00 -770,606.00
Decrease of operating receivable 946,836.00 -293,735.00
Increase of operating receivables 750,097.00 5,013,292.00
Net cash flows arising from operating activities 366,036.00 341,372.00
II. Significant investment and financing activities that without cash
-- --
flows
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 10,923,537.00 12,706,881.00
Less: Beginning balance of cash equivalents 10,557,501.00 17,293,509.00
Net increase of cash and cash equivalents 366,036.00 -4,586,628.00
XIV. Supplement information
1. Particulars about current non-recurring gains and loss
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the
write-off part for which assets impairment provision is -1,918.00
made)
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Total -1,918.00 --
The government grants recognized as the current profits and losses are the regular projects of profits and losses,
which should be explained and disclosed the identification reasons one by one.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
In 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
0.58% 0.004 0.004
shareholders of Company.
Net profit attributable to the Common stock
shareholders of Company after deducting of 0.58% 0.004 0.004
non-recurring gain/loss.
3. Abnormal items of main financial statements and reasons for abnormality
1.The items in year-end consolidated balance sheet which change greatly over the beginning of year are listed as
follows:
Items Amount at the period Amount in Chaged Remark
end year-begin （%）
Monetary funds 90,249,062 63,502,910 42.12% Received RMB 30 million
Restructuring deposit
Bill receivable - 1,500,000 -100.00% Retrieve loans
Prepayments 13,230 25,192 -47.48% Prepaid reduction
Interest 79,340 -100.00% Interest received
receivable
Other receivable 54,318 311,279 -82.55% Receivables reduced
Other payable 46,781,726 22,663,345 106.42% Received RMB 30 million
Restructuring deposit
2.The items in consolidated profit statement for the report year which change greatly over the previous year are listed as
follows:
Items Amount at the period Amount in Chaged Remark
end year-begin （%）
Operating cost 1,446,029 2,073,313 -30.26% Rental property depreciation
reduction
Financial cost -58,719 273,998 -121.43% Reduced loan interest
Investment 857,157 -71,083 -1305.85% Performance changes effect of the
incom associates
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
Non-operating 3,929 -100.00% Occur at the end of period
income
Non-operating 1,918 2,419,043 -99.92% Non-operating expenses decreased
expenses because the Company officially
brought an action against the
companies including Nanjing East
Asia Textile Printing and Dyeing
Co., Ltd. in respect of its
investment in Nanjing project and
paid relevant legal costs in the
previous year while there was no
such expenditure of big amount in
the report year.
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深圳中冠纺织印染股份有限公司 2014 年半年度报告全文
X. Documents available for inspection
1.The Semi-Annual report 2014;
2. The semi-annual financial report with signature and seal of legal representative ,person in charge of accountin
g works and person in charge of accounting institution in 2014;
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 Shenzhen Victor Onward Textile Industrial Co., Ltd.
August 26, 2014
116
