Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
Stock code: 000045,200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No. 2017-14
Summary of 2016 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
1. Important notes
The summary is abstract from full-text of annual report, for more details information , investors should found in
the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed
by CSRC.
All directors present in the meeting of the board of the annual report to review the annual report.
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Stock abbreviation Shen Textile A，Shen Textile B Stock code 000045、200045
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Jiang Peng Mo Xiayun
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Office Address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Fax 0755-83776139 0755-83776139
Tel 0755-83776043 0755-83776043
E-mail jiangp@chinasthc.com moxy@chinasthc.com
II. Brief introduction to the main business or products in the reporting period
In 2016, the company's main business covered such the high and new technology industry as represented by
LCD polarizer, its own property management business and the retained business of high-end textile and garment
Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel
display industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers and
TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on
many fields. The company’s five existing production lines of polarizer with mass production have products
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products
mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones,
wearable devices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing
Optoelectronic, BOE, IVO, Shenchao Optoelectronic ,LGD and so forth panel companies.
During the reporting period, firstly, the company effectively improved the production capacity of polarizer
through speed-up and capacity-lift of the production line; secondly, the company promoted the second-phase
construction of No.6 line project according to the plan and completed the plant decoration and purification and the
related projects, as well as the host equipment has been successively arrived in the port while being installed;
thirdly; in order to further enhance the company's polarizer production technology and management level, the
company launched the introduction of strategic investors for Shenbo Optoelectronic, resulted in that Jinhang
Investment - which was set up by Hangzhou Jinjiang Group Co., Ltd and Hangzhou Jinjiang Group Co., Ltd is the
actual controller- invested RMB 1352.64 million in cash to subscribe 40% stake of Shengbo Optoelectronics. On
the basis of the Capital Increase Agreement signed by the company and Jinjiang Group andJinhang Investment,
they also signed the Cooperative Agreement which reached a consensus in connection to the future development
and management of Shengbo Optoelectronics.
Upon the dual effects of the product line construction and the enormous downstream market, the core of the
global display industry has speeded up the transfer to the Mainland China, thus Mainland China has become the
investment hotspots for the global panel display industry. The panel display industry is one of the most important
development projects listed in Medium and Long Term Development Outline for Information Industry form 2006
to 2020, and is also an industry encouraged by the country. In the future, the company will, upon more than 20
years of operational experiences in the industry and the regional advantages, fully utilize the resource advantages
of state-owned enterprise and the mechanism advantages of private enterprise. Based on the all-round
improvement of the management level and profitability and production technology, the company will tap into the
platform of listed company and the existing industries to integrate the industrial resources of polarizer industry
and other related optical film industry both in China and Taiwan area to boost the development of Shengbo
Optoelectronics and become perfect, thus to construct the Industrial Cluster of optical film in Shenzhen.
III. Accounting and financial highlights
1.Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the
accounting policy or corrections of accounting errors?
□Yes √ No
In RMB
Changed over last year
2016 2015 2014
（％）
Operating Gross income（RMB） 1,198,200,216.42 1,226,746,791.62 -2.33% 1,210,952,548.57
Net profit attributable to the
shareholders of the listed company -87,270,604.54 8,497,227.40 -1,127.05% -113,591,328.26
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
to the shareholders of listed -102,767,648.41 -92,259,797.61 -11.39% -148,855,363.05
company（RMB）
Cash flow generated by business
-55,264,465.84 39,584,500.37 -239.61% -48,701,494.05
operation, net（RMB）
Basic earning per
-0.17 0.02 -950.00% -0.22
share(RMB/Share)
Diluted gains per
-0.17 0.02 -950.00% -0.22
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） -4.10% 0.39% -4.49% -5.06%
End of Changed over last year
End of 2016 End of 2014
2015 （％）
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
Gross assets（RMB） 4,119,586,266.47 2,969,394,978.70 38.73% 2,884,531,917.28
Net assets attributable to
shareholders of the listed company 2,339,554,176.31 2,174,569,545.55 7.59% 2,196,249,248.26
（RMB）
2.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 262,310,373.65 289,847,211.91 305,710,856.98 340,331,773.88
Net profit attributable to the
-10,246,461.60 -19,851,389.80 -22,331,061.71 -34,841,691.43
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
-11,444,624.15 -20,934,054.20 -28,728,256.10 -41,660,713.97
to the shareholders of listed
company
Net Cash flow generated by
-23,635,239.84 -15,680,955.50 -9,241,580.15 -6,706,690.35
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as
well as the shareholdings of the top 10 shareholders
In shares
Total number The total number Total
Total
of common of preferred shar preferred sharehold
shareholders at
shareholders at eholders voting ri ers at the end of the
the end of the
the end of the 41,555 46,078 ghts restored at p 0 month from the date 0
month from the
eriod-end(if of disclosing the
reporting date of disclosing
any)(See Notes annual report(if
period the annual report
8) any)(See Notes 8)
Shareholdings of top 10 shareholders
Number of Number of share
Nature of Proportion of shares held pledged/frozen
Shareholders Amount of restricted shares held
shareholder shares held(%) at period
-end State of share Amount
Shenzhen
Investment State-owned
46.21% 234,069,436
Holdings Co., legal person
Ltd.
Shenzhen
Shenchao State-owned
Technology 3.18% 16,129,032
Investment Co., Legal person
Ltd.
Qianhai Life Domestic
insurance Co., non
Ltd.－Self State-o 1.26% 6,384,816
funds Huatai wned
Portfolio Legal person
Anhui Guofu Domestic 0.67% 3,408,341
Industrial non
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
Investment State-o
Funds wned
Mangement Legal person
Co., Ltd.
MORGAN
STANLEY &
Foreign
CO. 0.57% 2,900,814
Legal person
INTERNATION
AL PLC
Domestic
Sun Huiming Nature 0.48% 2,443,526
person
Domestic
Sheng Qingxia Nature 0.28% 1,442,600
person
Domestic
Zhu Ye Nature 0.24% 1,239,109
person
Chongqing
Domestic
International
non
Trust Co., Ltd.
State-o 0.24% 1,210,000
－Collective wned
capital trust of
Legal person
No. 2
Qingdao Liema
Asset
Domestic
Management
non
Co., Ltd.－ State-o 0.23% 1,181,694
Liema Private wned
offering
Legal person
securities
investment
Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen
Investment Holding Co., Ltd. and a person taking concerted action. Except this, the Company did
Related or acting-in-concert
not whether there is relationship between the top ten shareholders holding non-restricted negotiable
parties among shareholders
shares and between the top ten shareholders holding non-restricted negotiable shares and the top 10
above
shareholders or whether they are persons taking concerted action defined in Regulations on
Disclosure of Information about Shareholding of Shareholders of Listed Companies.
Explanation on shareholders
The company's shareholder- Zhu Ye-via Goulian Securities Co.,Ltd's clients' credit-trading
participating in the margin
guaranteed securities account-holds 1,239,109 shares.
trading business(if any )
2.Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √Not applicable
No preference shareholders in the reporting period
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
3.Relationship between the Company and its actual controller in the form of diagram
5. Corporation bonds
（1）Basic information of the corporate bonds
Abbreviated Bond Bond
Bond Name Code Date Due Interest Rate
Name Balance(RMB’0000)
（2）Information about the rating of the corporate bonds
（3）The key accounting data and financial indicators of the latest two years to the end of the reporting
period
In RMB’0000
Items 2016 2015 At the same time rate of change
III. Discussion and Analysis of the Management
1. Business Operation summary in the reporting period
The Company requires investors to read the full text of this annual report carefully and take note of the following
risk factors.
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In 2016, affected by the adverse factors including the sharp appreciation of the yen, the rising prices of raw
materials and the intensifying market competition leading to a continuous price decline of the polarizer, the
production and management situation of polarizer has been grim; the company overcame the impacts of the major
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
asset restructuring, unified minds and thoughts, adhered to the transformation for development, promoted the
reform of mixed ownership, and successfully drew in private capital for Shengbo Optoelectronics, thus to
all-roundly improve the competitiveness. The company utilized all strengths to promote the polarizer project
construction and improve the main business of polarizer, meanwhile, the company ensured the increasing growth
for the revenue of property leasing, as well as maintained a stable and orderly work tendency for the development.
In the year of 2016, the company achieved the operating revenue of RMB 1198.2002 million, an
year-on-year decrease of 2.33%; total profits of RMB 77.9865 million, an year-on-year decrease of 280.73%; net
profits attributable to the owner of the parent company was RMB 87.2706 million, an year-on-year decrease of
1,127.05%. Mainly due to the sharp appreciation of the yen, the raw material costs and foreign exchange losses of
the company's polarizer business increased significantly compared to the same period last year, and the losses of
polarizer business increased, meanwhile the investment income from the disposal of financial assets available for
sale and the income from the disposal of equity decreased compared to the same period last year.
During the reporting period, the company mainly completed the following work: firstly, the company effectively
improved the production capacity through speed-up and capacity-lift of the production line, actively promoted the
client-import work for new products, followed up the work of raw material substitution and reduced the
production costs, thus the polarizer business development has got new achievements; secondly, strengthened the
service management of property-type enterprises, optimized the customer structure and strictly implemented the
leasing revenue enhancement plan for creating conditions to the sustainable increase of property operating
efficiency; thirdly, continuously demonstrated and perfected the "13th Five-Year" planning and specified the
strategic goal of unswervingly developing the polarizer business; fourthly, after the introduction of strategic
investors by Shengbo Optoelectronic, the company invigorated the mechanism and strongly developed the whole
business; fifthly, upon the arrangement of the major asset restructuring by the controlling shareholder, the
company actively cooperated to push forward the matters of the major asset restructuring; sixthly, paid close
attention to safety production and took preventive measures to ensure the safe development of enterprises.
2. Material change in principal activities during the reporting period
□ Yes √ No
3. Products accounting for over 10% of revenue or profit from principal activities of the Company
√ Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Name Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
Polarizer sheet 798,562,759.96 -131,094,111.13 0.20% -0.64% -119.44% -1.84%
Lease and
Management of 92,357,025.54 45,190,347.43 71.88% 1.78% -48.84% -2.25%
Property
Trade 274,139,665.80 4,126,317.74 1.04% -9.02% 414.00% 0.27%
4. Seasonal or cyclical operations requiring special attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the
common shareholders or their composition
√ Applicable □Not applicable
During the reporting period, the net profit attributable to ordinary shareholders of the listed company decreased by
RMB 95.7678 million or 1,127.05% as compared with the previous period. The decrease was mainly due to the
substantial appreciation of the yen, which resulted in a significant increase in raw material cost and exchange
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Shenzhen Textile (Holdings) Co., Ltd. Summary of 2016 Annual Report
losses for the Company's polarizer business, The loss of investment in polarizing sheet business and the decrease
in investment income and equity disposal proceeds from the sale of available-for-sale financial assets were lower
than the previous period.
6. Suspension in trading or delisting
□ Applicable √ Not applicable
7. Events relating to the financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared
to the financial report for the prior year
√ Applicable □Not applicable
According to CK (2016) No. 22 notice "On printing and Distributing Value-Added tax Accounting
Regulations" issued by the Ministry of Finance, after comprehensive regulations for business tax paid VAT,
business tax and additional course changed name to "tax and additional" course. The course accounts consumption
tax of business activities, urban maintenance and construction tax, resource tax, educational expenses additional
and the property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes. The "business tax
and additional" column in the income statement should be changed to "tax and additional"column. The company’s
property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes should be listed in the
management fees. And also be listed in this course since May 1, 2016.
Items Amount
Taxes and surcharges 3,469,318.93
Management fee -3,469,318.93
The above changes in accounting policies were examined and approved in the 33th meeting of the sixth term
board of directors.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
Nil
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report
for the prior year
□ Applicable √ Not applicable
Nil
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
March 31, 2017
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