Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2017
August 26, 2017
1
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
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 Textile(Holdings) Co., Ltd.
June 30,2017
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 1,021,411,279.17 933,856,912.73
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Bill receivable 41,800,470.91 41,908,315.45
Account receivable 191,457,477.91 220,222,019.41
Prepayments 27,203,694.97 6,773,323.14
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 10,581,051.41 6,652,883.11
Dividend receivable
Other account receivable 103,859,623.65 67,272,556.72
Repurchasing of financial assets
Inventories 295,893,311.56 283,371,714.07
Assets held for sales
2
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Non-current asset due in 1 year
Other current asset 1,154,910,595.58 1,428,043,157.76
Total of current assets 2,847,117,505.16 2,988,100,882.39
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 41,999,500.48 41,565,777.96
Expired investment in possess
Long-term receivable
Long term share equity investment 24,460,681.83 24,849,311.00
Property investment 175,368,491.53 179,324,547.77
Fixed assets 687,923,881.13 723,685,287.56
Construction in progress 252,939,183.42 119,804,231.43
Engineering material
Fixed asset disposal 10,418.34
Production physical assets
Gas & petrol
Intangible assets 39,425,858.86 39,698,654.32
R & D petrol
Goodwill
Long-germ expenses to be amortized 849,171.70 973,081.68
Deffered income tax asset 1,743,980.68 1,584,492.36
Other non-current asset
Total of non-current assets 1,224,721,167.97 1,131,485,384.08
Total of assets 4,071,838,673.13 4,119,586,266.47
Current liabilities
Short-term loans 37,917,157.74 12,335,695.77
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
3
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Account payable 134,519,813.42 175,461,715.72
Advance payment 42,082,230.55 30,297,446.49
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 17,387,958.30 27,379,719.86
Tax payable 9,166,018.05 13,995,726.19
Interest payable 44,641,353.52 42,842,605.52
Dividend payable
Other account payable 145,748,929.54 147,108,590.19
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 40,000,000.00
Other current liability
Total of current liability 431,463,461.12 489,421,499.74
Non-current liabilities：
Long-term loan 80,000,000.00 80,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Differed income 107,793,823.19 110,045,784.62
Differed income tax liability
Other non-current liabilities
Total non-current liabilities 187,793,823.19 190,045,784.62
Total of liability 619,257,284.31 679,467,284.36
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,837,205,251.95 1,837,205,251.95
Less：Shares in stock
Other comprehensive income 3,318,193.16 3,392,222.07
Special reserves
Surplus reserves 73,710,682.05 73,710,682.05
Common risk provision
Undistributed profit -66,817,987.13 -81,275,828.76
Total of owner’s equity belong to the
2,353,937,989.03 2,339,554,176.31
parent company
Minority shareholders’ equity 1,098,643,399.79 1,100,564,805.80
Total of owners’ equity 3,452,581,388.82 3,440,118,982.11
Total of liabilities and owners’ equity 4,071,838,673.13 4,119,586,266.47
Legal representative ：Zhu Jun
Person-in-charge of the accounting work：Zhu Jun
Person-in -charge of the accounting organ：Mu Linying
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 381,614,472.23 440,685,610.11
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 600,000.00 1,000,000.00
Account receivable 716,593.37 492,974.01
Prepayments 237,900.00 120,000.00
Interest receivable 8,785,807.13 3,218,526.94
Dividend receivable
5
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Other account receivable 9,228,512.38 12,524,256.75
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 110,000,000.00 30,000,000.00
Total of current assets 511,183,285.11 488,041,367.81
Non-current assets：
Disposable financial asset 40,499,500.48 40,065,777.96
Expired investment in possess
Long-term receivable
Long term share equity investment 1,988,684,448.44 1,989,073,077.61
Property investment 168,567,573.77 172,279,313.75
Fixed assets 26,591,353.40 27,403,189.39
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,520,771.13 1,345,846.59
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 898,341.00 1,919,804.30
Other non-current asset
Total of non-current assets 2,226,761,988.22 2,232,087,009.60
Total of assets 2,737,945,273.33 2,720,128,377.41
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 411,743.57 411,743.57
Advance payment 639,024.58 639,024.58
6
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Employees’ wage payable 4,505,495.93 6,533,138.24
Tax payable 4,816,476.14 4,398,387.25
Interest payable
Dividend payable
Other account payable 120,659,699.78 120,954,892.58
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 131,032,440.00 132,937,186.22
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities
Total of liability 131,032,440.00 132,937,186.22
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,576,547,075.96 1,576,547,075.96
Less：Shares in stock
Other comprehensive income 3,318,193.16 3,392,222.07
Special reserves
Surplus reserves 73,710,682.05 73,710,682.05
Undistributed profit 446,815,033.16 427,019,362.11
7
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Total of owners’ equity 2,606,912,833.33 2,587,191,191.19
Total of liabilities and owners’ equity 2,737,945,273.33 2,720,128,377.41
3.Consolidated Income statement
In RMB
Item Report period Same period of the previous year
I. Income from the key business 739,337,756.87 552,157,585.56
Incl：Business income 739,337,756.87 552,157,585.56
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 747,682,301.68 582,562,825.44
Incl：Business cost 677,617,195.79 511,249,697.64
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 6,589,017.85 3,126,938.03
Sales expense 4,007,043.14 4,516,009.63
Administrative expense 40,846,568.49 46,124,255.12
Financial expenses -12,037,356.58 8,972,817.56
Asset impairment loss 30,659,832.99 8,573,107.46
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 22,955,035.39 2,267,193.29
Incl: investment gains from affiliates 220,115.63 711,998.34
Gains from currency exchange
（“-”for loss）
Other income 5,143,961.90
III. Operational profit（“-”for loss） 19,754,452.48 -28,138,046.59
Add ：Non-operational income 528,419.77 2,298,220.41
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Including：Income from disposal of
1,510.00
non-current assets
Less：Non business expenses 3,478.36 20,829.78
Incl：Loss from disposal of non-current
3,281.59 20,770.93
assets
IV.Total profit(“-”for loss) 20,279,393.89 -25,860,655.96
Less：Income tax expenses 7,742,958.27 4,237,195.44
V. Net profit 12,536,435.62 -30,097,851.40
Net profit attributable to the owners of
14,457,841.63 -30,097,851.40
parent company
Minority shareholders’ equity -1,921,406.01
VI. Other comprehensive income -74,028.91 -2,009,434.06
Net of profit of other comprehensive inco
me attributable to owners of the parent co -74,028.91 -2,009,434.06
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be -74,028.91 -2,009,434.06
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
325,291.89 -2,240,078.24
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
-399,320.80 230,644.18
ncial statements
9
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
6.Other
7.Net of profit of other comprehensive in
come attributable to Minority
shareholders’ equity
VII. Total comprehensive income 12,462,406.71 -32,107,285.46
Total comprehensive income attributable
14,383,812.72 -32,107,285.46
to the owner of the parent company
Total comprehensive income
-1,921,406.01
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.03 -0.06
(II)Diluted earnings per share 0.03 -0.06
Legal representative ：Zhu Jun
Person-in-charge of the accounting work：Zhu Jun
Person-in -charge of the accounting organ：Mu Linying
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 31,849,598.03 31,599,060.18
Incl：Business cost 6,083,265.84 5,654,104.32
Business tax and surcharge 1,364,623.95 2,262,341.59
Sales expense
Administrative expense 10,388,438.80 11,602,041.51
Financial expenses -6,361,722.17 -7,662,384.78
Asset impairment loss -3,652,130.67 16,249.72
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 2,146,702.07 2,267,193.29
Incl: investment gains from
220,115.63 711,998.34
affiliates
Other income
II. Operational profit（“-”for loss） 26,173,824.35 21,993,901.11
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Add ：Non-operational income 1,510.00
Including：Income from disposal of
1,510.00
non-current assets
Less：Non business expenses 1,582.15 13,422.71
Incl：Loss from disposal of non-current
1,582.15 13,422.71
assets
III.Total profit(“-”for loss) 26,173,752.20 21,980,478.40
Less：Income tax expenses 6,378,081.15 3,096,022.38
IV. Net profit（“-”for net loss） 19,795,671.05 18,884,456.02
V.Net of profit of other comprehensive i
-74,028.91 -2,009,434.06
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
(II)Other comprehensive income that wi
-74,028.91 -2,009,434.06
ll be reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
325,291.89 -2,240,078.24
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
-399,320.80 230,644.18
ancial statements
6.Other
VI. Total comprehensive income 19,721,642.14 16,875,021.96
VII. Earnings per share：
（I）Basic earnings per share
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
795,578,837.63 520,074,236.25
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 23,710,137.30 44,974,078.38
Other cash received from business
35,648,684.61 33,073,522.35
operation
Sub-total of cash inflow 854,937,659.54 598,121,836.98
Cash paid for purchasing of
737,896,239.33 491,834,135.65
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
12
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 69,775,248.99 67,312,097.85
Taxes paid 53,257,411.02 21,995,337.06
Other cash paid for business activities 92,185,161.14 56,296,461.76
Sub-total of cash outflow from business
953,114,060.48 637,438,032.32
activities
Cash flow generated by business
-98,176,400.94 -39,316,195.34
operation, net
II.Cash flow generated by investing
Cash received from investment
0.00 460,000,000.00
retrieving
Cash received as investment gains 3,781,185.22 12,519,210.40
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 1,740.00 160.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 2,205,083,032.64 6.38
Sub-total of cash inflow due to
2,208,865,957.86 472,519,376.78
investment activities
Cash paid for construction of
fixed assets, intangible assets 131,421,510.57 71,456,688.51
and 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
1,883,000,000.00 368,000,000.00
activities
Sub-total of cash outflow due to
2,014,421,510.57 439,456,688.51
investment activities
Net cash flow generated by investment 194,444,447.29 33,062,688.27
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 51,181,623.57 192,535,253.62
13
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Cash received from bond placing
Other financing –related ash received 6,809,000.00
Sub-total of cash inflow from financing
57,990,623.57 192,535,253.62
activities
Cash to repay debts 66,068,073.78 270,594,907.49
Cash paid as dividend, profit, or
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
66,068,073.78 270,594,907.49
financing activities
Net cash flow generated by financing -8,077,450.21 -78,059,653.87
IV. Influence of exchange rate
-668,409.25 944,072.13
alternation on cash and cash equivalents
V.Net increase of cash and cash
87,522,186.89 -83,369,088.81
equivalents
Add: balance of cash and cash
930,114,436.57 748,658,775.60
equivalents at the beginning of term
VI ..Balance of cash and cash
1,017,636,623.46 665,289,686.79
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
32,697,766.87 31,740,661.93
rending of services
Tax returned
Other cash received from business
12,894,925.40 34,427,040.40
operation
Sub-total of cash inflow 45,592,692.27 66,167,702.33
Cash paid for purchasing of
1,748,604.45 2,618,061.41
merchandise and services
Cash paid to staffs or paid for staffs 8,290,247.88 8,966,862.21
Taxes paid 8,145,004.75 15,233,557.86
14
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Other cash paid for business activities 8,891,199.29 3,324,789.03
Sub-total of cash outflow from business
27,075,056.37 30,143,270.51
activities
Cash flow generated by business
18,517,635.90 36,024,431.82
operation, net
II.Cash flow generated by investing
Cash received from investment
8,863,114.47
retrieving
Cash received as investment gains 3,781,185.22
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 1,510.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 80,000,000.00 6.38
Sub-total of cash inflow due to
83,782,695.22 8,863,120.85
investment activities
Cash paid for construction of
fixed assets, intangible assets 1,371,469.00 2,967,307.80
and other long-term assets
Cash paid as investment 208,000,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
160,000,000.00
activities
Sub-total of cash outflow due to
161,371,469.00 210,967,307.80
investment activities
Net cash flow generated by investment -77,588,773.78 -202,104,186.95
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
15
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-59,071,137.88 -166,079,755.13
equivalents
Add: balance of cash and cash
440,685,610.11 531,582,749.03
equivalents at the beginning of term
VI ..Balance of cash and cash
381,614,472.23 365,502,993.90
equivalents at the end of term
16
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrusment Com
Less: Other Specia Minor Total of
Items mon Attributa
pref shareholde owners’
Share Capital Shares Compre lized Surplus
erre Sust risk ble
Capital in hensive reserv reserves rs’ equity equity
Othe reserves
d aina prov profit
r stock Income e
stoc ble ision
k debt
I.Balance at the 506,521, 1,837,20 3,392,22 73,710,6 -81,275, 1,100,564, 3,440,118,9
end of last year 849.00 5,251.95 2.07 82.05 828.76 805.80 82.11
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
506,521, 1,837,20 3,392,22 73,710,6 -81,275, 1,100,564, 3,440,118,9
beginning of
849.00 5,251.95 2.07 82.05 828.76 805.80 82.11
current year
III.Changed in the -74,028. 14,457,8 -1,921,406 12,462,406.
current year 91 41.63 .01 71
（1）Total
-74,028. 14,457,8 -1,921,406 12,462,406.
comprehensive
91 41.63 .01 71
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
17
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) 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 506,521, 1,837,20 3,318,19 73,710,6 -66,817, 1,098,643, 3,452,581,3
18
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
end of this term 849.00 5,251.95 3.16 82.05 987.13 399.79 88.82
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Less Other
instrusment Spec Com
: Compr Minor Total of
Items ializ mon
pref owners’
Share Capital Shar ehensi Surplus Attributabl shareholders
erre Sust ed risk
’ equity equity
Capital Othe reserves es in ve reserves e profit
d aina reser prov
r stoc Incom
stoc ble ve ision
k e
k debt
I.Balance at the 506,521, 1,585,13 3,212, 70,539,3 9,166,137. 2,174,569,54
end of last year 849.00 0,051.37 187.35 19.86 97 5.55
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
506,521, 1,585,13 3,212, 70,539,3 9,166,137. 2,174,569,54
beginning of
849.00 0,051.37 187.35 19.86 97 5.55
current year
III.Changed in the 252,075, 180,03 3,171,36 -90,441,96 1,100,564,8 1,265,549,43
current year 200.58 4.72 2.19 6.73 05.80 6.56
（1）Total
180,03 -87,270,60 -87,090,569.8
comprehensive
4.72 4.54 2
income
（II）Investment
252,075, 1,100,564,8 1,352,640,00
or decreasing of
194.20 05.80 0.00
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
19
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
252,075, 1,100,564,8 1,352,640,00
4．Other
194.20 05.80 0.00
(IV) Internal
3,171,36 -3,171,362
transferring of
2.19 .19
owners’ equity
1. Capitalizing of
3,171,36 -3,171,362
capital reserves (or
2.19 .19
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 term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the 506,521, 1,837,20 3,392, 73,710,6 -81,275,82 1,100,564,8 3,440,118,98
end of this term 849.00 5,251.95 222.07 82.05 8.76 05.80 2.11
20
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity
instrusment Less: Other Surplu
Total of
Items Share Capital Shares Compre s Common risk Attributable
owners’
Capital preferre Sustain Othe reserves in hensive reserv provision profit
equity
d stock able r stock Income es
debt
I.Balance at the 506,521, 1,576,547, 3,392,22 427,019,362 2,587,191,1
73,710,682.05
end of last year 849.00 075.96 2.07 .11 91.19
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
506,521, 1,576,547, 3,392,22 427,019,362 2,587,191,1
beginning of 73,710,682.05
849.00 075.96 2.07 .11 91.19
current year
III.Changed in the -74,028. 19,795,671. 19,721,642.
current year 91 05 14
（I）Total
-74,028. 19,795,671. 19,721,642.
comprehensive
91 05 14
income
(II) Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
21
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)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
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 506,521, 1,576,547, 3,318,19 446,815,033 2,606,912,8
73,710,682.05
end of this term 849.00 075.96 3.16 .16 33.33
Amount in last year
In RMB
Amount in last year
Items Share Other Equity Capital Less: Other Sur Common Attributabl Total of
Capital instrusment reserves Share Compre plus risk e profit owners’
22
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
s in hensive rese provision equity
preferre Sustain Othe stock Income rves
d stock able r
debt
I.Balance at the 506,521, 1,576,547, 3,212,18 398,477,102 2,555,297,52
70,539,319.86
end of last year 849.00 069.58 7.35 .41 8.20
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
506,521, 1,576,547, 3,212,18 398,477,102 2,555,297,52
beginning of 70,539,319.86
849.00 069.58 7.35 .41 8.20
current year
III.Changed in the 180,034. 28,542,259. 31,893,662.9
6.38 3,171,362.19
current year 72 70 9
（I）Total
180,034. 31,713,621. 31,893,656.6
comprehensive
72 89 1
income
(II) Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit -3,171,362.1
3,171,362.19
allotment 9
1.Providing of -3,171,362.1
3,171,362.19
surplus reserves 9
2．Allotment to the
owners (or
23
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
shareholders)
3．Other
(IV)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
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the 506,521, 1,576,547, 3,392,22 427,019,362 2,587,191,19
73,710,682.05
end of this term 849.00 075.96 2.07 .11 1.19
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
III. Basic Information of the Company
(1)Company Profile
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994,
approved by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the
Company was restructured and named as Shenzhen Textile (Holdings) Co., Ltd. In the same year,
approved by the (1994) No.19 file of Shenzhenshi, the shares of the company were listed in
Shenzhen Stock Exchange. The company now holds a unified social credit code for the
91440300192173749Y business license,Registration address and headquarter address are
6/F,Shenfang Building, No.3 Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and
marketing of polarizers for liquid crystal display, management of properties in bustling business
districts of Shenzhen and reserved high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on
August 24,2017.
(2)Scope of consolidated financial statements
1.As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidat
ed financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi
Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property
Management Co., Ltd. Shenzhen Beaufity Garments Co., Ltd. ,Shzhen Shenfang Import & Export
Co., Ltd., and Shengtou (Hongkong) Co., Ltd.
2．The scope of consolidated financial statements this period did not change.
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual
transactions, in accordance with the relevant provisions of Accounting Standards for Business
Enterprises and in accordance with this Note V, "Significant accounting policies and accounting
estimates".
(2)Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that
will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips:
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
1. Statement on complying with corporate accounting standards
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.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3. Operating cycle
Normalbusiness cycle is realized by the Companyin cash or cash
equivalentsfromthepurchaseofassetsfor mpocessing until. Less than 1 year is for the normal
operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities
repaid at maturity within one year as of the balance sheet date shall be classified into the current
assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different
controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the
absorbing party, while that other enterprise participating in the combination is a party being absorbed.
Combination date is the date on which the absorbing party effectively obtains control of the party
being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the
enterprise being combined at the combination date. The difference between the carrying amount of
the net assets obtained and the carrying amount of consideration paid for the combination (or the total
face value of shares issued) is adjusted to the capital premium in the capital reserve. If the balance of
the capital premium is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to
the combination shall be recognized as an expense through profit or loss for the current period when
incurred.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmed
between the ultimate control date and the combining date for the combining party and the combined
party on the acquirement date, and shall respectively offset the initial retained incomes or the profits
and losses of the current period during the comparative statement.
(2)Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties both
before and after the business combination.For a business combination not involving enterprises under
common control, the party that, on the acquisition date, obtains control of another enterprise
participating in the combination is the acquirer, while that other enterprise participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains
control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the
acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during
the merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilities
and the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall be
recorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months after
acquisition, additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arose from deductible temporary
difference by the acquiree can be achieved, relevant income tax assets can be recognized, and
goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in
stages that involves multiple exchange transactions, according to “The notice of the Ministry of
Finance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and
Article51 of “Accounting Standards for Business Enterprises No.33 - Consolidated Financial
Statements” on the “package deal” criterion, to judge the multiple exchange transations whether they
are the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs of
this section and “long-term investment” accounting treatment, if it does not belong to the “package
deal” to distinguish the individual financial statements and the consolidated financial statements
related to the accounting treatment:
In the individual financial statements, the total value of the book valueoftheacquiree's equity
investment before the acquisition date and the cost of new investment at the acquisition date, as the
initial cost of the investment, the acquiree's equity investment before the acquisition date involved in
27
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
other comprehensive income, in the disposal of the investment will be in other comprehensive
income associated with the use of infrastructure and the acquiree directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the defined benefit plan acquiree is remeasured net changes in net assets or
liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquiree previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its
fair value and its carrying amount is recorded as investment income.The previously-held equity
interest in the acquiree involved in other comprehensive income and other comprehensive income
associated with the purchase of the foundation should be used party directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the acquiree is remeasured defined benefit plans other than changes in net
liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as to
obtain benefits from its operating activities. The relevant events refer to the activities that have
significant influence on the return to the invested party. In accordance with the specific conditions,
the relevant events of the invested party should conclude the sale and purchase of goods and services,
the management of the financial assets, the purchase and disposal of the assets, the research and
development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an
enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant
elements involved in the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other
relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in the
consolidated income statement and consolidated statement of cash flows, as appropriated; no
adjustment is made to the opening balance and comparative figures in the consolidated financial
statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired
during the reporting period, through a business combination involving enterprises under common
control, the financial statements of the subsidiary are included in the consolidated financial
statements. The results of operations and cash flow are included in the consolidated balance sheet and
the consolidated income statement, respectively, based on their carrying amounts, from the date that
28
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
common control was established, and the opening balances and the comparative figures of the
consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the
Company, the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Where a subsidiary was
acquired during the reporting period through a business combination not under common control, the
financial statements was reconciliated on the basis of the fair value of identifiable net assets at the
date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group
transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/ owners’ equity and net
profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented
separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity
investment or other reasons, the remaining equity investment is re-measured at its fair value at the
date when control is lost. The difference between 1) the total amount of consideration received from
the transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current period
when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or
liabilities are accounted when the control is lost(ie, in addition to the former subsidiary is remeasured
at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are
transferred to the current investment income). The retained interest is subsequently measured
according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises
No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises
No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity
investment until the loss of control, need to distinguish between equity until the disposal of a
subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction
disposition of equity investment in a subsidiary, subject to the following conditions and the economic
impact of one or more of cases, usually indicates that several transactions should be accounted for as
a package deal:①these transactions are considered。simultaneously, or in the case of mutual influence
made, ②these transactions as a whole in order to achieve a complete business results; ③the
occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look
29
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in
accordance with “without losing control over the disposal of a subsidiary part of a long-term equity
investments“principles applicable accounting treatment. Until the disposal of the equity investment
loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will
be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing
control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment
corresponding to the difference between the disposal, recognized in the consolidated financial
statements as other comprehensive income, loss of control over the transferred together with the loss
of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more partieshave joint control，depending of
the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, andobligations for the liabilities, relating
to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net
assets of thearrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share commo
n business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equi
ty investments .
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and
investments having short holding term (normally will be due within three months from the day of
purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be
measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
30
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
The approximate shot exchange rate on the transaction date is adopted and translated as RMB
amount when the foreign currency transaction is initially recognized. On the balance sheet date, the
monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet
date, the foreign exchange conversion gap due to the exchange rate, except for the balance of
exchange conversion arising from special foreign currency borrowings capitals and interests for the
purchase and construction of qualified capitalization assets, shall be recorded into the profits and
losses of the current period. The non-monetary items of foreign currency measured at the historical
cost shall still be translated at the spot exchange rate on the transaction date, of which the RMB
amount shall not be changed. The non-monetary items of foreign currency measured at the fair
value shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be
recorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate on the
transaction date is adopted as the translation exchange rate, with the exception of “undistributed
profits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financial
statement of foreign currency converted above shall be listed in other comprehensive incomes under
the owner’s equity in the consolidated balance sheet.
10.Financial tools
One financial asset or financial liability shall be recognized when the company becomes the party in
the financial instrument contract. The financial assets and the financial liabilities are measured at the
fair value in the initial recognition. For the financial assets and liabilities that measured at the fair
values and the variation included in the current profits and losses, the relative transaction expenses
shall be directly recorded into the profits and losses. For the financial assets and liabilities of other
categories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. For a financial instrument which has an
active market, the Company uses quoted price in the active market to establish its fair value. The
quoted price in the active market refers to the price that can be regularly obtained from exchange
market, agencies, industry associations, pricing authorities; it represents the fair market trading price
in the actual transaction. For a financial instrument which does not have an active market, the
Company establishes fair value by using a valuation technique. Valuation techniques include using
recent arm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysis
and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date
31
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
basis. On initial recognition, the Company’s financial assets are classified into including financial
assets at fair value though profit or loss, held-to maturity investments, loans and receivables and
available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or
loss.Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this portfolio
for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair
value cannot be reliably measured. For such kind of financial assets, fair values are adopted for
subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it
meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or
recognition of relevant gains or losses that would otherwise arise from measuring the financial
instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis,
and is reported to the enterprise’s key management personnels. Formal documentation regarding risk
management or investment strategy has prepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any
gains or losses arising from changes in the fair value and any dividends or interest income earned on
the financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind
of financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, impairment or amortization are recognized in profit or
loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to the
net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Company shall estimate future cash flow considering all contractual terms of the financial
asset or financial liability without considering future credit losses, and also consider all fees paid or
received between the parties to the contract giving rise to the financial asset and financial liability that
32
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are
not quoted in an active market. Financial assets classified as loans and receivables by the Company
include note receivables, account receivables, interest receivable dividends receivable and other
receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit
or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on
initial recognition as available for trade, and financial assets that are not classified as financial assets
at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included in
the capital reserve, except that impairment losses and exchange differences related to amortized cost
of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until
the financial assets are derecognized, at which time the gains or losses are released and recognized in
profit or loss. Interests obtained and dividends declared by the investee during the period in which the
financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for
the financial assets that measured by the fair value. If there is objective evidence indicating a
financial asset may be impaired, a provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant
single amounts, and carry out an independent impairment test on the financial assets with
insignificant single amounts, or conduct an impairment-related test after they are included in a
combination of financial assets with similar credit risk features so as to carry out. Where, upon
independent test, the financial asset (including those financial assets with significant single amounts
and those with insignificant amounts) has not been impaired, it shall be included in a combination of
financial assets with similar risk features so as to conduct another impairment test. The financial
assets which have suffered from an impairment loss in any single amount shall not be included in any
combination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the
estimated present value of future cash flow. The difference is recorded as impairment loss. If there is
objective evidence to indicate the recovery of value of financial assets after impairment, and it is
related with subsequent event after recognition of loss, the impairment loss recorded originally can be
reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the
amortized cost of the financial assets without provisions of impairment loss on the reserving date.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily
according to the integrated relevant factors, an available-for-trade financial asset is impaired. The
"serious decline" refers to the cumulative fair value declines more than 30%; "non-temporary
decline" refers to the continuous decline in the fair value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in
fair value thathad been recognized in capital reserve shall be removed and recognized in profit or loss.
The amount of the cumulative loss that is removed shall be difference between the acquisition cost
with deduction of recoverable amount less amortized cost, current fair value and any impairment loss
on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the
financial asset is recovered, and it is objectively related to an event occurring after the impairment
loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on
available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on
available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot
be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by
delivery of such an unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a
pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has
transferred substantially all the risks and rewards of the asset, or has neither transferred norretained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over
the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent
liability is recognized. The extent of existence refers the level of risk by the financial asset changes
the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying
amount of the financial asset transferred; and the sum of the consideration received from the transfer
and any cumulative gain or loss that had been recognized in other comprehensive income, is
recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part
that is derecognized, based on the relative fair value of those parts. The difference between (a) the
carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for
the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
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been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost
all of the risks and rewards of ownership of the financial assets have been transferred if. Has
transferred the ownership of the financial assets of almost all the risks and rewards to the transferee,
the derecognition of the financial asset; retains ownership of the financial assets of almost all of the
risks and rewards of financial assets that are not derecognised; neither transfers nor retains
ownership of the financial assets of almost all of the risks and rewards, then continue to determine
whether the enterprise retains control of the assets and the accounting treatment in accordance with
the principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities. For financial liabilities at fair value through
profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current
period, and transaction costs relating to other financial liabilities are included in the initial recognition
amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the
initial recognition to be measured by the fair value follows the same criteria as the classification by
which financial assets held-for-trade and financial assets designed at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.For the
financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values
are adopted for subsequent measurement. All the gains or losses on the change of fair value and the
expenses on dividends or interests related to these financial liabilities are recognized in profit or loss
for the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price
in an active market and their fair value cannot be measured reliably, is subsequently measured by cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for
the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged or cancelled or has expired. An agreement between the Company (an
existing borrower) and existing lender to replace original financial liability with a new financial
liability with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability) derecognized
the consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
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7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized
financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the
financial asset and settle the financial liability simultaneously, a financial asset and a financial
liability shall be offset and the net amount is presented in the balance sheet. Except for the above
circumstances, financial assets and financial liabilities shall be presented separately in the balance
sheet and shall not be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. The consideration received from issuing equity instruments, net of
transaction costs, are added to shareholders’ equity. All types of distribution (excluding stock
dividends) made by the Company to holders of equity instruments are deducted from shareholders’
equity. The Group does not recognize any changes in the fair value of equity instruments.
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11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
The Client Identifies single amount of accounts
receivable that is not less than RMB 1 million as
account receivable that are individually significant
Judgment criteria or amount standard of material specific amount
in amount. The Client Identifies single amount of
or amount criterial：
accounts receivable that is not less than RMB 0.5
million as account receivable that are individually
significant in amount.
Making an independent impairment test. If any
objective evidence shows that it has been impaired,
the impairment-related losses shall be recognized
according to the gap between its present value of
Provision method with material specific amount and provision of future cash flow less than its book value, and the
specific bad debt preparation： several shall be determined to withdraw the bad
debt provision. If there exists no the impairment
after the impairment test, they shall be included in a
combination of the receivables with similar risk
features so as to withdraw the bad debt provision.
2.The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
3－4 years 50.00% 50.00%
4－5 years 50.00% 50.00%
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Over 5 years 50.00% 50.00%
In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group ,adopting other method for bad debt provision：
□ Applicable √ Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt
There is any objective evidence shows that it has been impaired.
Provision
The impairment-related losses shall be recognized according to the gap
Withdrawing Method of Bad Debt Provision
between its present value of future cash flow less than its book value.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of
production or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus
the net realizable value at the balance sheet date. The net realizable value refers to the amounts that
the estimated sale price of inventory minus the estimated costs ready to happen till the completion of
works, the estimated selling expenses and the relevant expenses of taxation. The company shall
recognize the net realizable value of inventory based on the acquired unambiguous evidence and in
view of the purpose to hold the inventory, the influence of matters after the balance sheet date and
other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of
the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses
of taxation during the process of normal production and operation. The net realizable value of
inventory that required to conduct processing shall be recognized according to the amounts of the
estimated sale price of the finished products minus the estimated costs ready to happen till the
completion of works, the estimated selling expenses and the relevant expenses of taxation. On the
balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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contract price and others without the contract price in the same inventory, and the amounts of the
inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison
with their corresponding costs.
4. Inventory System
Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1The asset is immediately sellable at its current condition per usual sales term applicable to the type
of assets to which it belongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevokable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilitie
s, are classified as current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classifie
d as held for sale, in the operation and the preparation of the financial statements to be able to differ
entiate the components alone in the company within:
1. This part of main business represents an independent or a main business area;
2. This part of the proposed disposal plans for a major business independent or a main business area;
3 . This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the
fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair
value, which doesn’t exceed the original book value of the fixed assets when the condition of holding
for sale is met. The impairment losses of the assets shall be regarded and recorded into the current
profits and losses if the original book value is more than the balance of the estimated net residual
value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed
assets held for sale, the company shall terminate the classification of held-for-sale and measure based
on the less one between the following amounts: (1) the amounts after adjusted for the assets or the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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disposal group classified as the book value before the held-for-sale according to the originally
confirmed depreciation, amortization or impairment when supposed that have not classified as the
held-for-sale. (2) the returned amounts that can’t be re-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above
principles.
14.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has
control, joint control or significant influence over the long-term equity investments. The Company
invested does not have control, joint control or significant influence over the long-term equity
investments as financial assets available for sale or at fair value and the changes included financial
assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations
are common, related activities and the arrangement must be after sharing control participants agreed
to the decision-making. Significant influence is the Company s financial and operating policies of the
entity has the right to participate in decision-making, but can not control or with other parties joint
control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common
control is measured at the acquirer's share of the combination date book value of the acquiree's net
equity in the ultimate controller's consolidated financial statements. The difference between the cost
and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is
transferred by way of issuing equity instruments, the face value of the equity instruments issued is
recognised in share capital and the difference between the cost of the face value of the equity
instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is
insufficient.The cost of a long-term equity investment acquired through business combination not
under common control is the fair value of the assets transferred, liabilities incurred or assumed and
equity instruments issued. (For the equity of the combined party under common control obtained
step-by-step through multiple transactions and the business combination under common control
ultimately formed, the company should respectively dispose all the transactions if belong to the
package deal. For the package deal, all the transactions will be conducted the accounting treatment as
the deal with acquisition of control. For the non-package deal, the shares of the book value of the
stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements of
the ultimate control party shall be as the initial investment cost of the long-term equity investment,
and the capital reserves shall be adjusted for the difference between the initial investment cost of
long-term equity investment and the sum of the book value of long-term equity investment before
merging and that of new consideration payment obtained on the merger date, or the retained earnings
shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held
before the merger date, the accounting treatment will not be conducted temporarily for other
comprehensive income accounted by equity method or confirmed for the financial assets available for
sale.)
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All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not
under the same control through gaining the shares of the combined enterprise by multiple steps of
deals, it shall deal with it in the following two ways depending on that if it belongs to "a package
deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control
power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally held
by this enterprise accounted for by weighted equity method, the relevant other comprehensive income
shall not be accounted for temporarily.If the equity investment held originally can be classified as the
financial assets for sale, the difference between the fair value and the book value, and the variation in
the accumulative fair value of other comprehensive returns recorded originally will be transferred into
the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on
initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash
paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the
assets given away in the case of non-monetary asset exchange, or the fair value of the relevant
long-term equity investments. The cost of acquisition of a long-term equity investment acquired not
through business combination also includes all directly associated expenses, applicable taxes and fees,
and other necessary expenses. When the significant impact or the joint control but non-control on the
invested party can be implemented due to the additional investment, the long-term equity investment
cost is the sum of the fair value of the equity investment originally held and the new investment costs
based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments
significant influence are accounted for using the equity method. In addition, the Company's financial
statements using the cost method of accounting for long-term equity can exercise control over the
investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except
for cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized in
the period in accordance with the attributable share of cash dividends or profit distributions declared
by the investee.
(2)Equity method of accounting for long-term equity investments
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When using the equity method, the initial investment cost of long-term equity investment exceeds th
e investor's net identifiable assets of the fair share of the investment value, do not adjust the initial in
vestment cost of long-term equity investment; the initial investment cost is less than the investee uni
t share of identifiable net assets at fair value, the difference is recognized in profit or loss, while the
long-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s
interest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity
investment measured using the equity method is adjusted by the Company's share of the investee's net
profit and other comprehensive income, which is recognised as investment income and other
comprehensive income respectively. The carrying amount of an long-term equity investment
measured using the equity method is reduced by profit distribution or cash dividends announced by
the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive
income and profit distribution, which is adjusted to capital reserves。The net profit of the investee is
adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements
and hence the net profit and other comprehensive income of an investee which does not adopt
accounting policies or accounting period uniform with the Company is adjusted by the Company's
accounting policies and accounting period. The Company's share of unrealised profit or loss arising
from related party transactions between the Company and an associate or joint venture is deducted
from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted.
Where assets transferred to an associate or joint venture which form part of the Company's
investment in the investee but which does not enable the Company obtain control over the investee,
the cost of the additional investment acquired is measured at the fair value of assets transferred and
the difference between the cost of the additional investment and the book value of the assets
transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture
form an operation, the difference between the consideration received and the book value of the assets
transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture
form an operation, the transaction is accounted for in accordance with CAS 20 - Business
Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the
long-term equity investment and other net long-term investments in the investees. Where the
Company has obligation to share additional net loss of the investee, the estimatedshare of loss
recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of
loss of the investee when the investee generates net profit, the Company's unrecognised share of loss
is reduced by the Company's share of net profit and when the Company's unrecognised share or loss
is eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests
and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital
reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against
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returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control,
the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies
in Note applies. For disposal of long-term equity investments in any situation other than the
fore-mentioned situation, the difference between the book value of the investment disposed and the
consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit
distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part
disposal of the investment, cumulative other comprehensive income relevant to the investment
recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant
assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit,
other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the
disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the
investment, cumulative other comprehensive income relevant to the investment recognised, as a result
of accounting by equity method or recognition and measurement principles applicable to financial
instruments, prior to the Company's acquisition of control over the investee is treated in the same
manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss
proportionate to the disposal.The investee's equity movement other than net profit, other
comprehensive income and profit distribution, as a result of accounting by equity method, is
reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company continues to have significant influence over the investee after the partial
disposal, the investment in measured by the equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment
in the investee and the Company ceases to have significant influence over the investee after the
partial disposal, the investment in measured in accordance with the recognition and measurement
principles applicable to financial instruments in the Company's separate financialstatements and the
difference between the fair value and the book value of the remaining investment at the date of loss of
control is recognised in profit or loss. Cumulative other comprehensive income relevant to the
investment recognised, as a result of accounting by equity method or recognition and measurement
principles applicable to financial instruments, prior to the Company's acquisition of control over the
investee is treated in the same manner that the investee disposes the relevant assets or liabilities on
the date of loss of control. The investee's equity movement other than net profit, other comprehensive
income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
loss when control is lost. Where the remaining investment is measured by equity method, the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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fore-mentioned other comprehensive income and other equity movement are recognised in profit or
loss proportionate to the disposal; Where the remaining investment is measured in accordance with
the recognition and measurement principles applicable to financial instruments, the fore-mentioned
other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial
disposal of investment in the investee,the remaining investment in the investee is measured in
accordance with the recognition and measurement principles applicable to financial instruments, the
difference between the fair value and the book value of the remaining investment at the date of loss of
joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive
income relevant to the investment recognised, as a result of accounting by equity method, prior to the
partial disposal is treated in the same manner that the investee disposes the relevant assets or
liabilities on the date of loss of joint control or significant influence. The investee's equity movement
other than net profit, other comprehensive income and profit distribution is reocgnised in profit or
loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple
disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single
transaction which result in the Company's loss of control over the investee. Each difference between
the consideration received and the book value of the investment disposed is recognised in other
comprehensive income and reclassified in full to profit or loss at the time when control over the
investee is lost.
15.Investment property
The measurement mode of investment property
The investment property of the company includes the leased land use rights, the leased buildings,
the land use rights held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation
by the service life average method, and the depreciation policy is the same with that of the fixed
assets. The land use rights held and prepared to transfer after appreciation in the investment property
shall be amortized by the line method, and the specific accounting policy is same with that of the
intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one
fiscal year. The fixed assets can be recognized when the following requirements are all met: (1) the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed
assets can be measured reliably.The fixed assets of the company include the houses and buildings,
the decoration of the fixed assets, the machinery equipment, the transportation equipment, the
electronic instrument and other devices.
2．The method for depreciation
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
House and Straight-line method
Building- 35 years 4% 2.74%
Production
House and Building-Non- Straight-line method
40 years 4% 2.40%
Production
Decoration of Fixed Straight-line method
10 years 10.00%
assets
Machinery and Straight-line method
10-14 years 4% 9.60%-6.86%
equipment
Transportation Straight-line method
8 years 4% 12.00%
equipment
Electronic equipment Straight-line method 8 years 4% 12.00%
Other equipment Straight-line method 8 years 4% 12.00%
3．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met: ① the
ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term.
② the tenant has the option to purchase the leasing assets, and the made purchase price is expected
to be far less than the fair value of the leasing assets in the implementation of the option. Thus, it
can be reasonably recognized that the tenant will implement the option on the lease date. ③ the
ownership of assets is not transferred, but the lease term shall be the most of the life of the lease
assets. ④ the least present value of the lease payment of the tenant and the least present value of the
lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date
respectively. ⑤ the leasing assets have the special nature, and only the tenant can use if there is no
major modifications.
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(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under
finance leases shall be book kept according to the lower between the fair value of the leasing assets
and the least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be
withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own
fixed assets.
17.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measured
according to the actual cost occurred before the assets are built to achieve the expected usable
condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual
project costs when the expected usable condition achieved. For the expected usable condition
achieved while the final accounts for completed projects not handled yet, the projects shall be
transferred into the fixed assets as per the estimated value. After the final accounts for completed
projects handled, the original estimated value shall be adjusted as per the actual cost, but the original
withdrawn depreciation shall not be adjusted again.
18.Borrowing costs
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.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
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）Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted by activities other than those necessary
to prepare the asset for its intended use or sale, when the interruption is for a continuous period of
more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the
current period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
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3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
special borrowings actually occurred during the current period (including the amortization of discount
or premium recognized as per the effective interest method) minus the interest income acquired after
the borrowings deposit in bank or the investment income obtained from the temporary investment.
For the general borrowings for the purchase and construction of qualified assets, the capitalized
interest amount of the general borrowings shall be computed and recognized according to the
weighted average of accumulative asset expense beyond the expense of the special borrowings,
multiplying the capitalization rate of general borrowings.
19.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software,
which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the
intangible assets. For the finite service life of the intangible assets, the years of service life or the
quantity of service life formed and the number of similar measurement unit shall be estimated. If the
term of economic benefits of the intangible assets brought for the company is not able to be foreseen,
the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the
following factors to estimate the service life: ① the normal service life of products produced with the
assets, and the acquired information of the service life of similar assets. ② the estimation of the
current stage conditions and the future development trends in the aspects of technology and craft. ③
the demand of the products produced by the assets or the offered services in the market. ④ the
expectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the
relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term of the
assets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of
other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and
Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the
company, or the indefinite term of intangible assets recognized as the indefinite service life of
intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights,
but the indefinite service life of contract provision or legal provisions. ② unable to judge the term of
economic benefits brought by the intangible assets for the company after the integration of
information in the same industry or the relevant expert argumentation.
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At the end of every year, the review should be made for the service life of the intangible assets with
the indefinite service life, and the relevant department that uses the intangible assets, shall conduct
the basic review by the method from up to down, in order to evaluate the judgment criteria of the
indefinite service life if there is the change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangible
assets during the service life, and the line method shall be adopted to amortize for the intangible
assets unable to reliably recognize the expected implementation mode. The specific service life is as
follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall
make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance
sheet date, the corresponding impairment provision shall be withdrawn according to the difference
between the book value and the recoverable amount. The intangible assets with the indefinite service
life and without the usable condition shall be conducted the impairment test every year whether the
impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded
into the current profits and losses when occurring. The expenditure for internal research and
development project in the development stage shall be recognized as the intangible assets when the
following requirements are simultaneously met: (1) the completion of the intangible assets is
available for use or sale, and feasible in the technology. (2) the intention to complete the intangible
assets and use or sale. (3) the method for the economic benefits produced by the intangible assets,
including the evidence that shows there exists the market for the products generated from the
intangible assets or the intangible assets have the market. The intangible assets are used internally
which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability
to use or sell the intangible assets. (5) the expenditure belong to the development stage of the
intangible assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the
research stage and the development stage of the company is as follows: (1) the investigation stage
planned to obtain the new technology and knowledge, shall be recognized as the research stage,
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which has the features of planning and exploration. (2) before the commercial manufacture and use,
the research results or other knowledge should be applied for the plan or design, in order to produce
the new or improved stages with substantial materials, devices and products, which should be
recognized as the development stage, and this stage has the features of pertinence and more
possibility to create the achievement.
20.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity
investment, the investment property measured by the cost mode, the fixed assets and the projects
under construction if there is possible impairment on the balance sheet date. If there exists the
evidence shows that the long-term assets have the impairment, the impairment test should be
conducted, and the recoverable amount should be estimated. The impairment shall be confirmed if
there exists after the comparison of the estimated recoverable amount of the assets and its book
value, and if the assets impairment provision shall be withdrawn to recognize the corresponding
impairment losses. The estimation of the recoverable amount of assets should be confirmed
according to the higher one between the net amount of the fair value minus the disposal costs and
the present value of the cash flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by
the business combination and the intangible assets with the indefinite service life whether there
exists the impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future
accounting period.
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21.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and
subsequent period (together of more than one year).
The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be
averagely amortize within the benefit period or the specified period. If the long-term unamortized
expense can’t make the benefits for the future accounting period, the amortized value of the
unamortized project shall all be transferred into the current profits and losses.
22.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual
short-term compensation as the liability and record into the current profits and losses or the relevant
assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the
fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit
plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on
the balance sheet date during the accounting period, shall be recognized as the liability, and recorded
into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution
plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and
mutually consistent actuarial assumptions to make evaluation of demographic variables and financial
variables, measure and define the obligations arising from the benefit plan, and determine the period
of the relevant obligations. The company shall discount all the defined benefit plan obligations,
including the obligation within twelve months after the end of the annual report during the expected
services provision of employee. The discount rate adopted in discounting shall be recognized
according to the bonds matched with the defined benefit plan obligation term and the currency at the
balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present
value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are
recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of
the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper
limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of
assets refers to the present value of economic benefits obtained from the refund of the defined benefit
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plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are
recognized as the service costs, the net interests on the net liabilities or the net assets of the defined
benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan
that re-measured. Of which, the service costs and the net interests on the net liabilities or the net
assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant
assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured shall be recorded into other comprehensive incomes, which should not be switched back
to the profits and losses during the subsequent accounting period, but the amount recognized from
other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the
early date and recorded into the current profits and losses: (1) when the company can’t withdraw the
demission welfare provided due to the rundown suggestion or the termination of labor relations plans.
(2) when the company recognizes the costs or the expenses related to the reorganization of demission
welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the
termination of labor relations plans at its side and when the costs relevant to the recombination of
dismission welfare payment, shall be recognized as the liabilities arising from the compensation due
to the termination of labor relations with staff and shall be recorded into the current profits and losses.
Then company shall reasonably predict and recognize the payroll payable arising from the dismission
welfare. The dismission welfare, which is expected to finish the payment within twelve months after
the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation. The dismission welfare, which is expected to be unfinished for the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of
short-term compensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of
the defined contribution plan, the accounting treatment shall be made in accordance with the defined
contribution plan. Except for these, other long-term benefits shall be made the accounting treatment
according to the defined benefit plan, but the changes arising from the re-measurement of net
liabilities or net assets of other long-term employee benefits shall be recorded into the current profits
and losses or the relevant assets costs.
23. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of
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the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the
expenditure required to settle the present obligation. There is the continuous scope for the required
expenditure, and the best estimate with the same possibilities resulted from various outcomes within
the scope shall be recognized as per the intermediate value. The best estimate should be recognize
according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters
involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are
matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are
compensated by the third party or other parties, the compensation amount should be separately
recognized as the assets when the receipt of the compensation amount is basically determined.
Meanwhile, the determined compensation amount shall not exceed the book value of the estimated
liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If
there is conclusive evidence that the book value cannot really reflect the current best estimate, the
adjustment shall be made for the book value in accordance with the current best estimate.
24. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met
simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the
continual management rights related to ownership no longer retained by the company and the
effective control of the sold goods no longer implemented, the reliable measurement of the revenue
amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the
relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the
reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits,
the reliable recognition of the completion schedule of transaction, and the reliable measurement of the
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
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service incomes according to the completion percentage method and recognized the completion
schedule of the provided service transaction according to the proportion of the costs occurred
accounting for the total estimated costs. If the provided services transaction results cannot be reliably
estimated at the balance sheet date and the occurred service costs can be expected to have
compensation, the company shall recognize to provide the service revenue according to the occurred
service cost amount and transfer the service costs as per the same amount. If the occurred service
costs cannot be expected to have compensation, the occurred service costs shall be recorded into the
current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the
right to use assets meets the requirements of the possible inflow of the relevant economic benefits and
the reliable measurement of revenue amount. The interest income shall be calculated and determined
according to time and actual interest rate of the monetary capital of the company used by others, and
the royalty revenue shall be measured and determined in accordance with the charging time and
method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of
products in domestic market shall be recognized after the following requirements are met: The
company has agreed to deliver the goods to the purchaser under the contract and the revenue amount
of product sales has been determined, the payment for goods has been withdrawn or the payment
vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to
the products can be measured reliably. The revenue of the sale of products in foreign market shall be
recognized after the following requirements are met: The company has made customs clearance and
departure from port under the contract, the bill of landing has obtained and the revenue of the sale of
products has been recognized, the payment for goods has been withdrawn or the payment vouchers
has been obtained and related economic benefits are likely to inflow, and the costs related to the
products can be measured reliably.
25.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other
ways, shall be recognized as the government subsidy related to the assets. The government grants
related to assets are recognized as the deferred income, equally distributed within the service life of
the relevant assets, and recorded into the current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to
Income
The government subsidy other than that related to income acquired by the company shall be
recognized as the government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy
shall be divided into that related to assets and that related to income, and the judgment basis is that:
① if the specific purpose of subsidy is stipulated in the government document, the review and
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necessary change shall be made at the balance sheet date for the proportion of division according to
the relative proportion of assets expense amount and expense amount recorded in the budget of the
special item. ② only general expression is made in the government documents, and the government
subsidy related to income should be made for the non-particular items.
The government subsidy related to income that used for the compensation of the related expenses or
losses in subsequent period, shall be recognized as the deferred income and recorded into the current
profits and losses during the period of the confirmation of relevant expenses. The relevant expenses
or losses occurred for the purpose of compensation shall be directly recorded into the current profits
and losses.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax
basis, and the difference of the book value and the tax basis that no confirmation of assets and
liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference
can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company
shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce
the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or
liabilities in the transaction shall not be recognized: (1) the transaction is not the business
combination. (2) the transaction doesn’t influence the accounting profits and the taxable incomes (or
the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the
following requirements are simultaneously met: (1) the temporary difference is possible to be
reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary
difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following
transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial
recognition of assets or liabilities arising from the transactions with the following features: this
transaction is not the business combination, and the transaction doesn’t influence the accounting
profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except
that the following requirements are simultaneously met: (1) the investment enterprise can control the
reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed
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in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is
not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax
assets in the future, the book value of the deferred tax assets shall be deduced. Except that the
deferred tax assets and the reduction amount are recorded into the owner’s equity when the original
recognition, others shall be recorded into the current income tax expense. The book value of the
deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the
transactions and items directly recorded into the stockholders’ equity, shall be recorded into other
comprehensive incomes or the stockholders’ equity, and the book value of goodwill shall be adjusted
by the deferred income tax arising from the business combination, but the rest of the current income
tax and the deferred income tax expense or income shall be recorded into the current profits and
losses.
27.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant
assets cost or recognized as the current profits and losses as per the line method, and the initial direct
expense occurred shall be directly recorded into the current profit and loss. The contingent rental
shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current
profits and losses as per the line method, and the initial direct expense occurred shall be directly
recorded into the current profit and loss, except that the large amounts are capitalized and recorded
into the profit and loss by stages. The contingent rental shall be recorded into the current profit and
loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value
of leasing assets and the present value of minimum lease payment at the lease commencement date as
the book value of rented assets, recognize the minimum lease payment as the book value of the
long-term payables, and the undetermined fiancéexpense of the difference and the initial direct costs
occurred shall be recorded into the leasing asset value. During each lease period, the current financing
charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease
receivables and initial direct expense at the lease commencement date as the book value of finance
lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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recognize the difference between the sums of minimum lease receivables, minimum lease receivables
and unguaranteed minus the sum of the present value as the unrealized financing income. During
each lease period, the current financing charges shall be measured and recognized by the effective
interest method.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
The content and reasons of accounting
Approval procedure Remarks
policy changes
On May 10, 2017, the Ministry of Finance
issued the Notice on issuing the
Amendment to Accounting Standards for The change in accounting policy does
Business Enterprises No. 16 - Government not involve the scope of the Company's
Grants (Accounting [2017] No. 15), Examined and approved at the third business. The change will not have a
required it shall be implemented in the meeting of the 7th Board of Directors on significant impact on the total amount
enterprise scope that performs the August 24, 2017 of assets, total liabilities, net assets and
accounting standards from June 12, 2017. net profit of the Company's previous
The company makes corresponding annual and 2017 financial reports.
changes in accounting policies in
accordance with the requirement.
（2）Change of main accounting estimations
□ Applicable √Not applicable
VV.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT The taxable turnover 17%、5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%、15%
Education surcharge Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the
information
Name of taxpayer Income tax rates
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Shenzhen Shengbo Optoelectronic Technology Co., Ltd. 15%
2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company,
has been qualified as national high-tech enterprise since 2016 ,High-tech and enterprise certificate
No.: GR201644201276 ,The certificate is valid for three years, The enterprise income tax rate of this
year is 15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administra
tion of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Su
pporting the Development of New-type Display Device Industry (Cai Guan Shui (2016) No. 62), Sh
enzhen Shengbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the
upstream industry of new-type display devices including colorful light filter coating and polarizer sh
eet that comply with the planning for independent development of domestic industries may enjoy th
e preferential policies of exemption from import tariff for the import of raw materials and consumab
les for the purpose of self use and production that can not be produced domestically from January 1,
2016 and December 31, 2020.
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 16,523.96 22,807.86
Bank deposit 1,019,095,651.39 932,021,522.23
Other monetary funds 2,299,103.82 1,812,582.64
Total 1,021,411,279.17 933,856,912.73
Including : The total amount of deposit
22,553,657.90 23,329,496.78
abroad
Other notes
As of June 30, 2017，The fixed-term deposit balance of money fund is RMB 3,774,655.71 , this part
will not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
Monetary unit is RMB yuan
2.Derivative financial assets
□Applicable √ Not applicable
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3.Bill receivables
(1) Classification Bill receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 41,800,470.91 41,908,315.45
Total 41,800,470.91 41,908,315.45
（2）Notes endorsement or discount and undue on balance sheet date
In RMB
Items Amount derecognizing at period –end Amount derecognizing at period-end
Bank acceptance 61,188,471.91
Total 61,188,471.91
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 Book Book
Proport Proportio Amoun Proporti Proportio
Amount Amount value Amount value
ion(%) n(%) t on(%) n(%)
Accounts
receivable of
individual
significance and 6,301,342. 3,999,088. 2,302,254 6,302,9 4,000,658 2,302,254.
2.98% 63.46% 2.61% 63.47%
subject to 71 66 .05 12.11 .05 06
individual
impairment
assessment
Accounts
receivable subject
to impairment
198,090,4 10,082,29 188,008,1 228,090 11,596,92 216,493,8
assessment by 94.10% 5.09% 94.56% 5.08%
70.26 0.88 79.37 ,819.33 4.13 95.20
credit risk
characteristics of a
portfolio
Accounts
receivable of
6,119,231. 4,972,186. 1,147,044 6,816,1 5,390,319 1,425,870.
individual 2.92% 81.26% 2.83% 79.08%
01 53 .49 89.64 .49 15
insignificance but
subject to
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
individual
impairment
assessment
210,511,0 19,053,56 191,457,4 241,209 20,987,90 220,222,0
Total 100.00% 100.00%
43.98 6.07 77.91 ,921.08 1.67 19.41
Accounts receivable of individual significance and subject to individual impairment assessment.
√ Applicable □Not applicable
In RMB
Amount in year-end
Debtor
Account receivable Bad debt provision Proportion(%) Reason for allowance
It has been included in the
Dongguan Fair LCD Co., list of national courts
1,696,834.60 1,696,834.60 100.00%
Ltd. dishonest debtor, unlikely
to recover.
Beyond the credit period
Guangdong Ruili Baolai
1,348,965.36 674,482.68 50.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period
Dongguan Yaxing
3,255,542.75 1,627,771.38 50.00% for a long time, uncertain
Semiconductor Co., Ltd.
recovered.
Total 6,301,342.71 3,999,088.66 -- --
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Subitem Within 1 year
197,608,593.41 9,880,429.22 5.00%
Subtotal within 1 year 197,608,593.41 9,880,429.22 5.00%
1-2 years 74,742.72 7,474.28 10.00%
2-3 years 45,898.44 13,769.53 30.00%
Over 3 years 361,235.69 180,617.85 50.00%
3-4 years 128,940.73 64,470.37 50.00%
4-5 years 38,535.76 19,267.88 50.00%
Over 5 years 193,759.20 96,879.60 50.00%
Total 198,090,470.26 10,082,290.88
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
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Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision：
□ Applicable √ Not applicable
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB-1,516,202.64 ; recovery or payback for bad
debts Amount is RMB418,132.96.
（3）The ending balance of receivable owed by the imputation of the top five parties
Balance in Proportion(%) Bad debt provision
Name Nature Aging
year-end
34.62% 3,643,943.50
First Goods Within 1 year
72,878,869.96
14.42% 1,517,953.91
Second Goods Within 1 year
30,359,078.15
5.69% 598,561.33
Third Goods Within 1 year
11,971,226.55
5.64% 593,590.84
Fourth Goods Within 1 year
11,871,816.81
3.49% 367,049.32
Fifth Goods Within 1 year
7,340,986.48
63.86% 6,721,098.90
Total
134,421,977.95
5.Prepayments
（1）Age analysis
In RMB
Balance in year-end Balance in year-begin
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 25,531,130.62 93.85% 5,108,950.81 75.43%
1-2 years 1,517,855.79 5.58% 592,795.34 8.75%
2-3 years 116,548.56 0.43% 1,033,416.99 15.26%
Over 3 years 38,160.00 0.14% 38,160.00 0.56%
Total 27,203,694.97 -- 6,773,323.14 --
60
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
First 6,774,400.00 24.90%
Second 5,287,973.86 19.44%
Third 4,053,335.37 14.90%
Fourth 3,374,897.02 12.41%
Fifth 2,461,512.07 9.05%
Total 21,952,118.32 80.70%
6.Interest receivable
1.Category of interest receivable
In RMB
Items Amount in year-end Amount in year-beginng
Fixed deposit interest 7,637,834.97 4,925,279.45
Structure deposit interest 2,943,216.44 1,599,384.48
Other financing product 128,219.18
Total 10,581,051.41 6,652,883.11
7.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book Book
Proportio Proportio Proportio Proportion(
Amount Amount value Amount Amount value
n(%) n(%) n(%) %)
Other accounts
receivable of
individual 11,981,4 11,981,4 11,981, 11,981,46
9.81% 100.00% 14.20% 100.00%
significance and 64.60 64.60 464.60 4.60
subject to individual
impairment
61
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
assessment
Other accounts
receivable subject to
impairment 109,609, 5,750,09 103,859,6 71,842, 4,569,810 67,272,5
89.77% 5.25% 85.19% 6.36%
assessment by credit 719.65 6.00 23.65 367.36 .64 56.72
risk characteristics of
a portfolio
Other accounts
receivable of
individual
511,820. 511,820. 511,820 511,820.7
insignificance but 0.42% 100.00% 0.61% 100.00%
77 77 .77 7
subject to individual
impairment
assessment
122,103, 18,243,3 103,859,6 84,335, 17,063,09 67,272,5
Total 100.00% 100.00%
005.02 81.37 23.65 652.73 6.01 56.72
Other receivable accounts with large amount and were provided had debt provisions individually at
end of period.
√ Applicable □Not applicable
In RMB
Amount in year-end
Debtor Withdrawal
Other account receivable Bad debt provision Reason for allowance
proportion (%)
Jiangxi Xuanli String No executable property,
11,389,044.60 11,389,044.60 100.00%
Co., Ltd. unlikely to recover.
Shenzhen Tianlong
Has been conceled,unlikely
Induatry& Trade Co., 592,420.00 592,420.00 100.00%
to recover
Ltd.
Total 11,981,464.60 11,981,464.60 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
√Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
62
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
Within 1 year 105,698,911.04 5,284,945.56 5.00%
Subtotal within 1 year 105,698,911.04 5,284,945.56 5.00%
1-2 years 3,712,869.88 371,286.99 10.00%
2—3 years 25,529.60 7,658.88 30.00%
Over 3 years 172,409.13 86,204.57 50.00%
3-4 years 160,403.68 80,201.84 50.00%
Over 5 years 12,005.45 6,002.73 50.00%
Total 109,609,719.65 5,750,096.00 5.25%
Notes：
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
（2）Bad debt provision accrual collected or switch back
The current amount of provision for bad debts is RMB1,180,285.36.
(3) Other account receivables category by nature of money
In RMB
Category Year-end balance Year-beginning balance
Customs bond 38,136,592.50 44,643,087.38
Export rebate 11,522,051.98 18,179,211.88
64,
Unit account 16,812,275.87
103,175.96
Deposit 41,359.09 1,858,126.16
Reserve fund and staff loans 1,035,084.57 900,116.01
Other 17,264,740.92 1,942,835.43
Total 122,103,005.02 84,335,652.73
(4)Top 5 of the closing balance of the other accounts receivable colleted according to the
arrears party
In RMB
Bad debt
Portion in total other provision of
Name Nature Year-end balance Age
receivables(%) year-end
balance
63
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
First Customs bond 38,136,592.50 Within 1 year 31.23% 1,906,829.63
Second Unit account 36,395,640.50 Within 1 year 29.81% 1,819,782.03
Third Unit account 15,738,000.00 Within 1 year 12.89% 786,900.00
Fourth Export rebate 11,522,051.98 Within 1 year 9.44% 576,102.60
Fifth Unit account 11,389,044.60 Over 5 years 9.33% 11,389,044.60
Total -- 113,181,329.58 -- 92.69% 16,478,658.86
8.Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Inventories types
In RMB
Year-end balance Year-beginning balance
Items
Book balance Provision for bad Book value Book balance Provision for bad Book value
debts debts
Raw materials 122,896,273.44 16,553,491.89 106,342,781.55 107,814,144.09 9,148,167.24 98,665,976.85
Processing
5,322,949.87 279,390.02 5,043,559.85 4,519,927.47 279,390.02 4,240,537.45
products
180,465,199.7
Stock goods 229,914,391.43 45,407,421.27 184,506,970.16 232,620,913.26 52,155,713.49
7
283,371,714.0
Total 358,133,614.74 62,240,303.18 295,893,311.56 344,954,984.82 61,583,270.75
7
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting
business" disclosure requirements
No
（2）Inventory Impairment provision
In RMB
Increased in current period Decreased in current period
Year-beginning Year-end
Items Transferred
balance Transferred back balance
Provision Provision
back
Raw materials 9,148,167.24 13,442,857.33 6,037,532.68 16,553,491.89
Processing 279,390.02 279,390.02
64
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
products
Stock goods 52,155,713.49 24,468,214.88 31,216,507.10 45,407,421.27
Total 61,583,270.75 37,911,072.21 37,254,039.78 62,240,303.18
9.Other current assets
In RMB
Items Year-end balance Year-beginning balance
Structural Deposit 110,000,000.00 428,000,000.00
Other financing product 1,028,000,000.00 1,000,000,000.00
After the deduction of input VAT 16,910,595.58 43,157.76
Total 1,154,910,595.58 1,428,043,157.76
10.Available-for-sale financial assets
(1)Available-for-sale financial assets
In RMB
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity
41,565,777.
78,689,488.99 36,689,988.51 41,999,500.48 78,255,766.47 36,689,988.51
instruments 96
8,378,730.5
Measured by fair value 8,812,453.02 8,812,453.02 8,378,730.50
0
33,187,047.
Measured by cost 69,877,035.97 36,689,988.51 33,187,047.46 69,877,035.97 36,689,988.51
46
41,565,777.
Total 78,689,488.99 36,689,988.51 41,999,500.48 78,255,766.47 36,689,988.51
96
(2)Available-for-sale financial assets measured by fair value at the period-end
In RMB
Available-for-sale equity Available-for-sale Debt
Type Total
instruments instruments
Cost of the equity
8,940,598.31 8,940,598.31
instruments/amortized
65
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
cost of the liabilities
instruments
Fair value 8,812,453.02 8,812,453.02
Changed amount of the
fair value accumulatively
-128,145.29 -128,145.29
included in other
comprehensive income
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-be proportion the
Period-begin Incre Decre Decre
Period -end gin Increase Period -end among the reporting
ase ase ase
investees period
Shenzhen
Jintian Industry 14,831,681. 14,831,68 14,831,681.5
14,831,681.50 3.68%
（Group） Co., 50 1.50 0
Ltd.
Shenzhen
16,800,000. 16,800,00 16,800,000.0
Jiafeng Textile 16,800,000.00 10.80%
00 0.00 0
Co., ltd.
Shenzhen
Guanhua 5,491,288.7 5,058,307.
5,491,288.71 5,058,307.01 45.00%
Prnting & 1 01
dyeing Co., Ltd.
Shenzhen Union
2,600,000.0
Development 2,600,000.00 2.87%
0
Group Co., Ltd
Shenzhen
Xiangjiang 160,000.00 160,000.00 20.00% 329,439.84
Trade Co., Ltd.
Shenzhen
Xinfang
524,000.00 524,000.00 20.00%
Knitting Co.,
Ltd.
66
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
Shenzhen
2,559,856.2
Dailisi Knitting 2,559,856.26 30.00%
6
Co., Ltd.
Anhui Huapeng 25,410,209.
25,410,209.50 50.00%
Textile Co., Ltd. 50
Shenzhen South 1,500,000.0
1,500,000.00 9.84%
Textile Co., Ltd. 0
69,877,035. 36,689,98 36,689,988.5
Total 69,877,035.97 -- 329,439.84
97 8.51 1
(4) Changes of the impairment of the available-for-sale financial assets during the reporting
period
In RMB
Available-for-sale Available-for-sale
Type Total
Equity instruments Debt instruments
Balance of the withdrawn
impairment at the 36,689,988.51 36,689,988.51
period-begin
Withdrawn at the period 36,689,988.51 36,689,988.51
11. Long-term equity investment
In RMB
Increase/decrease
Investme
Closing
nt profit Adjustme balance
Additiona Cash Withdraw
nt of
Opening Negative and loss Changes bonus or al of Closing of
Investees l other
balance of other profits impairme Other balance impairme
investmen recognize
comprehe
investmen equity announce nt nt
t d under nsive
t d to issue provision provision
the equity income
method
I. Joint venture
Shenzhen
5,106,487 -230,414. 4,876,073
Haohao .57 33 .24
Property
67
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial
Report 2017
Leasing
Co., Ltd.
Shenzhen
Xieli
4,243,705 4,243,705 266,654.9
Automobi
.44 .44 9
le Co.,
Ltd.
9,350,193 -230,414. 9,119,778 266,654.9
Subtotal
.01 33 .68 9
2. Affiliated Company
Shenzhen
Changlian
fa 1,968,358 2,025,788
57,430.75
.12 .87
Printing
& dyeing
Company
Jordan
2,574,327 -326,511. -56,469.0 2,191,347
Garment
.77 57 1 .19
Factory
Hongkon
g Yehui
11,223,08 719,610.7 -342,851. 209,424.0 11,390,42
Internatio
7.09 8 79 0 2.08
nal Co.,
Ltd.
15,765,77 450,529.9 -399,320. 209,424.0 15,607,55
Subtotal
2.98 6 80 0 8.14
25,115,96 220,115.6 -399,320. 209,424.0 24,727,33 266,654.9
Total
5.99 3 80 0 6.82 9
Other notes
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector.
68
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
12..Investment real estate
（1）Measured by the cost of investment in real estate
√ Applicable □Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
304,648,938.91 304,648,938.91
period-beginning
2.Increase in the current
period
(1) Purchase
（ 2 ） Inventory\Fixed
assets\ Transferred from
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end 304,648,938.91 304,648,938.91
II.Accumulated
amortization
1.Opening balance 125,324,391.14 125,324,391.14
2.Increased amount ofthe
3,956,056.24 3,956,056.24
period
(1) Withdrawal 3,956,056.24 3,956,056.24
3.Decreased amount of
the period
（1）Dispose
（2）Other out
69
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
4. Balance at
129,280,447.38 129,280,447.38
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period
175,368,491.53 175,368,491.53
-end
2.Book value at
179,324,547.77 179,324,547.77
period-beginning
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not appliucable
13. Fixed assets
(1) List of fixed assets
In RMB
Machinery
Items Houses & buildings Transportations Other Total
eqiupment
I. Original price
1. Balance at
492,709,415.27 655,711,038.75 3,691,157.72 20,981,709.48 1,173,093,321.22
period-beginning
2.Increase in the
192,124.81 446,110.18 638,234.99
current period
(1) Purchase 192,124.81 446,110.18 638,234.99
70
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
（2） Transferred fr
om construction in p
rogress
(3)Increased of
Enterprise
Combination
3.Decreased amount
19,951.61 71,580.00 91,531.61
of the period
（1）Disposal 19,951.61 71,580.00 91,531.61
4. Balance at
492,709,415.27 655,883,211.95 3,691,157.72 21,356,239.66 1,173,640,024.60
period-end
II. Accumulated
depreciation
1.Opening balance 99,253,511.93 333,568,124.02 3,015,711.94 13,570,685.77 449,408,033.66
2.Increased amount
7,175,844.02 28,268,533.31 126,369.36 814,964.80 36,385,711.49
of the period
(1) Withdrawal 7,175,844.02 28,268,533.31 126,369.36 814,964.80 36,385,711.49
3.Decrease in the
9,753.27 67,848.41 77,601.68
reporting period
（1）Disposal 9,753.27 67,848.41 77,601.68
4.Closing balance 106,429,355.95 361,826,904.06 3,142,081.30 14,317,802.16 485,716,143.47
III. Impairment
provision
1.Opening balance
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance
71
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
IV. Book value
1.Book value of the
386,280,059.32 294,056,307.89 549,076.42 7,038,437.50 687,923,881.13
period-end
2.Book value of the
393,455,903.34 322,142,914.73 675,455.78 7,411,023.71 723,685,287.56
period-begin
14. Project under construction
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
TFT-LCD
polarizing film II 249,984,154.45 249,984,154.45 116,849,202.46 116,849,202.46
project
Other 2,955,028.97 2,955,028.97 2,955,028.97 2,955,028.97
Total 252,939,183.42 252,939,183.42 119,804,231.43 119,804,231.43
(2) Changes of significant construction in progress
In RMB
Capitalis Including：
Amount ation of Current Capitalis
Increase Transferre Balance Sourc
at year Other Proportion Progress interest amount of ation of
Name Budget at this d to fixed in e of
beginnin decrease (%) of work accumul capitalizati interest
period assets year-end funds
g ated on of ratio（%)
balance interest
TFT-LC
D
700,340, 116,849, 133,134, 249,984, Colle
polarizin 35.69% 35.69%
000.00 202.46 951.99 154.45 ct
g film II
project
700,340, 116,849, 133,134, 249,984,
Total -- -- --
000.00 202.46 951.99 154.45
15.Liquidation of fixed assets
In RMB
Items End of term Beginning of term
72
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Small safes and TFT front section
10,418.34
viscometer scrap cleaning
Total 10,418.34
16. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
17. Oil-and-gas assets
□ Applicable √ Not applicable
18. Intangible assets
（1）Information
In RMB
Non-proprietary
Items Land use right Patent right Software Total
technology
I. Original price
1.Opening
48,822,064.61 11,825,200.00 2,143,580.00 62,790,844.61
balance
2.Increased
amount ofthe 358,200.00 358,200.00
period
(1) Purchase 358,200.00 358,200.00
(2)Internal
Development
(3)Increased of
Enterprise
Combination
3.Decreased amount
of the period
（1）Disposal
73
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
4. Balance at
48,822,064.61 11,825,200.00 2,501,780.00 63,149,044.61
period-end
II.Accumulated
amortization
1. Balance at
10,323,775.51 11,825,200.00 943,214.78 23,092,190.29
period-beginning
2. Increase in the
480,049.14 150,946.32 630,995.46
current period
(1) Withdrawal 480,049.14 150,946.32 630,995.46
3.Decreased amount
of the period
（1）Disposal
4. Balance at
10,803,824.65 11,825,200.00 1,094,161.10 23,723,185.75
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased amount
of the period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
38,018,239.96 1,407,618.90 39,425,858.86
period -end
2.Book value at
38,498,289.10 1,200,365.22 39,698,654.32
period-beginning
74
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
19.Goodwill
(1) Original book value of goodwill
In RMB
Name of the investees or the events
Opening balance Increase Decrease Closing balance
formed goodwill
Shenzhen Beauty Century Garment Co.,
2,167,341.21 2,167,341.21
Ltd.
Shenzhen Shenfang Import and Export
82,246.61 82,246.61
Co., Ltd.
Shenzhen Shengbo Optoelectronic
9,614,758.55 9,614,758.55
Technology Co., Ltd
Total 11,864,346.37 11,864,346.37
（2）Impairment of goodwill
In RMB
Balance in Increased at this .Decreased at this
Investee Balance in year-end
year-begin period period
Shenzhen Beauty Century Garment Co.,
2,167,341.21 2,167,341.21
Ltd.
Shenzhen Shenfang Import and Export
82,246.61 82,246.61
Co., Ltd.
Shenzhen Shengbo Optoelectronic
9,614,758.55 9,614,758.88
Technology Co., Ltd
Total 11,864,346.37 11,864,346.37
20. Long term amortize expenses
In RMB
Balance in Increase in this Amortized expenses
Items Other loss Balance in year-end
year-begin period
75
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Renovation fee 735,718.08 24,650.00 129,296.98 631,071.10
Other 237,363.60 19,263.00 218,100.60
Total 973,081.68 24,650.00 148,559.98 849,171.70
21. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets depreciation
5,212,652.64 1,303,163.16 4,114,242.48 1,028,560.61
reserves
Unattained internal sales
2,725,207.97 408,781.20 2,769,765.25 415,464.80
profits
Changes in fair value of
available for sale 128,145.29 32,036.32 561,867.81 140,466.95
financial assets
Total 8,066,005.90 1,743,980.68 7,445,875.54 1,584,492.36
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax
Items
or Taxable Difference liabilities or Taxable Difference liabilities
Deferred income tax
1,743,980.68 1,584,492.36
assets/
(3) Details of unrecognied deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 86,089,479.45 85,972,557.55
Deductible loss 495,981,968.38 486,014,140.23
Total 582,071,447.83 571,986,697.78
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
76
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
In RMB
Year Balance in year-end Balance in year-begin Remark
2018 129,226,944.33 129,226,944.33
2019 148,095,898.11 148,095,898.11
2020 83,990,395.00 83,990,395.00
2021 124,700,902.79 124,700,902.79
2022 9,967,828.15
Total 495,981,968.38 486,014,140.23 --
22. Short-term loan
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beginning
Credit loans 37,917,157.74 12,335,695.77
Total 37,917,157.74 12,335,695.77
23. Derivative financial liabilities
□ Applicable√ Not applicable
24.Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 133,547,809.08 174,417,235.90
1-2 years 73,646.37 57,989.27
2-3 years 50,450.66 300,642.80
3-4 years 261,559.23 37,090.00
4-5 years 28,930.20 161,238.93
Over 5 years 557,417.88 487,518.82
Total 134,519,813.42 175,461,715.72
77
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
25. Advance account
（1） Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 41,443,205.97 29,225,153.57
1-2 years 433,268.34
Over 5 years 639,024.58 639,024.58
Total 42,082,230.55 30,297,446.49
26.Payable Employee wage
（1）Payable Employee wage
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term employee
27,379,719.86 56,138,249.89 66,130,011.45 17,387,958.30
benefits
II. Post-employment
5,004,073.92 5,004,073.92
benefits
III. Termination benefit 195,715.00 195,715.00
Total 27,379,719.86 61,338,038.81 71,329,800.37 17,387,958.30
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
25,906,098.18 43,987,738.76 54,135,400.46 15,758,436.48
allowances and subsidies
2.Employee welfare 3,290,543.93 3,290,543.93
3. Social insurance
5,227,517.19 5,227,517.19
premiums
Including：Medical
770,516.32 770,516.32
insurance
Work injury
107,051.12 107,051.12
insurance
Maternity
109,975.58 109,975.58
insurance
78
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
4. Public reserves for
2,320,496.98 2,320,496.98
housing
5.Union funds and staff
1,473,621.68 1,311,953.03 1,156,052.89 1,629,521.82
education fee
Total 27,379,719.86 56,138,249.89 66,130,011.45 17,387,958.30
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
4,094,199.74 4,094,199.74
insurance premiums
2.Unemployment
145,774.43 145,774.43
insurance
3. Annuity payment 764,099.75 764,099.75
Total 5,004,073.92 5,004,073.92
27.Tax Payable
In RMB
Items At end of term At beginning of term
VAT 488,297.87 6,142,344.63
Enterprise Income tax 6,114,483.49 4,152,120.51
Individual Income tax 816,541.93 428,263.53
City Construction tax 30,391.65 523,339.31
House property Tax 1,538,455.99 1,538,122.93
Education surcharge 19,199.11 373,812.63
Other 158,648.01 837,722.65
Total 9,166,018.05 13,995,726.19
28.Interest Payable
In RMB
Items At end of term At beginning of term
Interest on long-term borrowings payable 44,446,217.66 42,805,384.31
Interest on short-term borrowings 195,135.86 37,221.21
79
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Total 44,641,353.52 42,842,605.52
29.Other payable
（1）Disclosure by nature
In RMB
Items At end of term At beginning of term
Engineering Equipment fund 61,436,137.45 46,903,714.95
Unit account 19,106,787.92 49,538,660.22
Deposit 18,753,042.55 24,625,922.69
Other 46,452,961.62 26,040,292.33
Total 145,748,929.54 147,108,590.19
30.Non-currentliabilitiesdue within 1 year
In RMB
Items At end of term At beginning of term
Long-term borrowings due with in 1 year 40,000,000.00
Total 40,000,000.00
31.Long-term borrowings
（1）Long-term term borrowings
In RMB
Items At end of term At beginning of term
Credit borrowings 80,000,000.00 80,000,000.00
Total 80,000,000.00 80,000,000.00
32.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 110,045,784.62 2,251,961.43 107,793,823.19
Total 110,045,784.62 2,251,961.43 107,793,823.19 --
Details of government subsidies：
In RMB
80
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Amount
Beginning of New subsidy in transferred to Asset-relatedorin
Items Other changes End of term
term current period non-operational come-related
income
Textile special
857,142.88 71,428.57 785,714.31 Related to assets
funds
High-tech
Industrialization
600,000.00 100,000.00 500,000.00 Related to assets
demonstration
projects
National grant
fundsfor new flat
3,000,000.00 500,000.00 2,500,000.00 Related to assets
panel display
industry
Borrowing
725,833.20 120,972.25 604,860.97 Related to assets
discount
Grant funds for
TFT-LCD
6,933,333.34 649,999.98 6,283,333.36 Related to assets
polarizer industry
project
Grant funds for
TFT-LCD
polarizer narrow 3,000,000.00 250,000.02 2,749,999.98 Related to assets
line (line 5)
project
Purchase of
imported
1,027,197.18 87,545.09 939,652.09 Related to assets
equipment and
technology
Innovation and
venture capital
300,000.00 25,000.02 274,999.96 Related to assets
for TFT-LCD
polarier I project
Shenzhen
polarizing
materials and
Technology
412,500.00 25,000.02 387,499.98 Related to assets
Engineering
Laboratory
innovation
venture capital
Shenzzhen 4,125,000.00 250,000.02 3,874,999.98 Related to assets
81
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Engineering
laboratory
polarizing
material and
technical
engineeting
Capital funding
for Technology 2,475,000.00 150,000.00 2,325,000.00 Related to assets
Center
Subsidy funds to
support the introd
86,328.60 7,194.00 79,134.60 Related to assets
uction of advance
d technology
Grant funds for
TFT-LCD
polarizer narrow 15,000,000.00 15,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 10,000,000.00 10,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 500,000.00 500,000.00 Related to assets
line (line 6)
project
Imported
equipment and
technology of 857,705.00 857,705.00 Related to assets
discount interest
funds
key technology
research and deve
lopment projects
5,000,000.00 5,000,000.00 Related to assets
of optical
compensation
film for polarizer
Strategic
industries
Development 25,000,000.00 25,000,000.00 Related to assets
fund of
Guangdong
82
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Province
Grants of
Purchase
equipment of
30,000,000.00 30,000,000.00 Related to assets
TFT-LCD
polarizing film
phase II project
Energy saving
transformation 145,744.42 14,821.46 130,922.96 Related to assets
grant funds
Total 110,045,784.62 2,251,961.43 107,793,823.19 --
Other notes：
（1）According to the "Notice on National Development and Reform Commission to the General Office of
the textile project management of the special funds" (Faigaiban [2006]2841), on December 22, 2006, the
Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will
use 14 years as asset depreciation period for amortization with the corresponding equipment in current period. The
amortization in accordance with the corresponding equipment, The other income in current period is
RMB71,428.57, the ending balance of uncompleted amortization is RMB785,714.31
(2) According to the document of Shenzhen Municipal Development and Reform Commission 【2009】 No. 416
that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet
Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and
Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform
Projects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commission
high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City
Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our
company will use 10 years as asset depreciation period for amortization in current period. The other income in
current period is RMB 100,000.00 and the balance amount of unfinished final amortization is RMB500,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of
the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidies
RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display
Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for
TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State
Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation
period for amortization. The other income in current period is RMB500,000.00, the balance amount of unfinished
final amortization is RMB2,500,000.00.
（4）On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of
RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocated by Shenzhen Bureau of Finance for phase-II
alteration project. Our company will use 10 years as asset depreciation period for amortization in current
period.The other income in current period is RMB 120,972.25 and the balance amount of unfinished final
amortization is RMB604,860.97.
83
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
(5) In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform
Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industry
issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Development
and Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD of
Shengbo Optoelectronic Company into the special plan for strategic transformation and industrialization of color
TV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company
for the research and development in the process of the project of industrialization and the purchase of required
software and hardware equipment. On June 2012 and September 2013, the company received the national grants
of RMB 10,000,000.00.. According to the Notice of Issuing the Governmental Investment Plan for 2011
Regarding Demonstration Project of High-tech Industrialization Including Specialized Services Such As Disaster
Recovery of Financial Information System issued by Shenzhen Development and Reform Commission (Shen Fa
Gai (2012) No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization of
polarizer sheet for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period for
amortization in current period.The other income in current period is RMB649,999.98. and the balance amount of
unfinished final amortization is RMB6,283,333.36.
(6) According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet,
New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), the
Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizer
sheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according to
the depreciation period of relevant assets. The other income in current period is RMB250,000.02 and the balance
amount of unfinished final amortization is RMB2,749,999.98.
(7) On October 2013, The company received the grants for the purchase of imported equipment and technology in
2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to the
depreciation period of relevant assets.Theother income in current period is RMB87,545.09 and the balance
amount of unfinished final amortization is RMB939,652.09.
(8) On December 2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching
funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation
period of relevant assets. The other income in current period is RMB25,000.02 and the balance amount of
unfinished final amortization is RMB274,999.96.
(9) On December 2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching
funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation
period of relevant assets. The other income in current period is RMB25,000.02 and the balance amount of
unfinished final amortization is RMB387,499.98.
(10) According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. for
Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012)
No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be
established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As
approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the
fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012
84
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
(new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises
with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241),
the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipment
and improving existing technological equipment and test conditions. The fund gap will be filled by the Company
through raising funds by itself. the Company planned to amortize the subsidy over 10 years according to the
depreciation period of relevant assets. The other income in current period is RMB250,000.02 and the balance
amount of unfinished final amortization is RMB3,874,999.98.
(11) According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including
Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and
Development Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center of
Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipal R&D center. In December
2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center.
the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.
The other income in current period is RMB150,000.00 and the balance amount of unfinished final amortization is
RMB2,325,000.00.
(12)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB
143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The other income in current period is RMB7,194.00 and
the balance amount of unfinished final amortization is RMB79,134.60.
(13) According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen Shengbo
Optoelectronic Technology Co., Ltd. application for local matching funds of TFT-LCD polarizing film II project
(Line 6) " (Shenzhen DRC [2013]No. 1771), the company obtained TFT-LCD polarizing film II project (line 6)
local matching funds of RMB 15,000,000.00 in April 2014.The fund gap will be filled by the Company through
raising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevant
assets get ready for intended use.
(14) According to "National Development and Reform Commission issued on industrial transformation and
upgrading projects (2nd industrial restructuring) notify the central budget for 2014 investment plan" (NDRC
Investment [2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB
10,000,000.00 in December 2014.The fund gap will be filled by the Company through raising funds by itself. The
subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended
use.
(15) In December 2014, the company received innovation venture capital (matching funding category) for Ping
Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB
500,000.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be
amortized over the depreciation period from the day when relevant assets get ready for intended use;
(16) On September 2014，The company received a discount of imported equipment and technology funds of RMB
857,705.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be
amortized over the depreciation period from the day when relevant assets get ready for intended use.
(17) On Jan. 2015, the company received RMB 5 million of grants for key technology research and development
projects of optical compensation film for polarizer from Shenzhen Scientific and Technological Innovation
85
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Committee. The company will defer income share transferred in the current profit and loss on the basis of
depreciation life as of the date of the predetermined workability state the related assets reach.
(18) According to “Reply on Congregating Development in Emerging Industrial Area Strategic Pilot Implement
Scheme of Guangdong Province ”(Reform and Development Office High-Tech [2013] No.2552,On December
2015, the Company received 20 million RMB of the pilot project fund( period II project of TFT-LCD
polarizer).On October 2016, the Company received 5 million RMB of Shenzhen strategic emerging industries and
the future development of industrial matching funds,The company will defer income share transferred in the
current profit and loss on the basis of depreciation life as of the date of the predetermined workability state the
related assets reach.
(19) According to Reform and Development Commission of Shenzhen Municipality sending the notice of “Reply
of National Reform and Development Office on Investing in Petrifaction and Medicine Project within Central
Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and Development Commission of
Shenzhen Municipality [2013]No.1449) , the Company received 30 million RMB of new production line of
TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 ,December 2015 and
September 2016.The company will defer income share transferred in the current profit and loss on the basis of
depreciation life as of the date of the predetermined workability state the related assets reach.
(20) In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and 34,535.45 RMB on
energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the no business income
was 14,821.46 RMB at the current period, the ending balance without amortization was 130,922.96 RMB
33.Stock capital
In RMB
Changed（+，-）
Balance in Capitalization Balance in
Issuance of
year-begin Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
506,521,849.00 506,521,849.00
shares
34. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 1,826,482,608.54 1,826,482,608.54
Other 10,722,643.41 10,722,643.41
Total 1,837,205,251.95 1,837,205,251.95
86
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
35.Other Comprehensive income
In RMB
Amount of current period
Less ：
After - t
Previously rec
Amount for After - tax a ax attrib
Year-beginni Year-end
Items ognized in pro
the period Less： ttributable t utable t
ng balance balance
fit or loss in ot
before inco Income tax o the parent o minor
her comprehen
me tax company ity shar
sive income
eholders
2.Other comprehensive income
reclassifiable to profit or loss in 3,392,222.07 34,401.72 108,430.63 -74,028.91 3,318,193.16
subsequent periods
Gains and losses from changes in fair
value of financial assets available for 1,789,105.39 433,722.52 108,430.63 325,291.89 2,114,397.28
sale
Translation differences of
financial statements 603,116.68 -399,320.80 -399,320.80 1,203,795.88
denominated
Total of other comprehensive income 3,392,222.07 34,401.72 108,430.63 -74,028.91 3,318,193.16
36. Special reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 73,710,682.05 73,710,682.05
Total 73,710,682.05 73,710,682.05
37. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits at the period
-81,275,828.76 9,166,137.97
end
After adjustments: Retained profits at the period
-81,275,828.76 9,166,137.97
beginning
Add: Net profit attributable to owners of the
14,457,841.63 -87,270,604.54
Company for the period
87
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Less: Appropriation to statutory surplus reserve 3,171,362.19
Retained profits at the period end -66,817,987.13 -81,275,828.76
38.Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 563,241,779.76 507,497,595.29 549,898,612.98 509,134,763.07
Other business 176,095,977.11 170,119,600.50 2,258,972.58 2,114,934.57
Total 739,337,756.87 677,617,195.79 552,157,585.56 511,249,697.64
39. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 1,877,415.61 175,298.23
Education surcharge 1,341,011.11 127,629.51
House taxes 2,827,811.60 1,028,950.29
Business tax 1,683,641.93
Other 542,779.53 111,418.07
Total 6,589,017.85 3,126,938.03
40.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 1,442,735.16 1,204,137.01
Exhibition fee 128,319.69 144,038.99
Business expenses 344,967.24 420,563.34
Transportation changes 1,507,900.57 1,655,766.13
Samples and product loss 170,061.25 369,885.00
Other 413,059.23 721,619.16
Total 4,007,043.14 4,516,009.63
41.Administrative expenses
In RMB
88
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Items Amount of current period Amount of previous period
Wage 18,043,421.42 16,718,507.40
Property insurance 144,107.56 151,170.29
Repair charge 351,038.26 97,758.00
Business entertainment 394,601.48 718,023.30
Travel expenses 400,427.52 511,070.78
Office expenses 351,040.92 579,632.65
Water and electricity 1,310,312.83 363,586.77
Tax 2,353,718.22
Lawsuit expenses 175,591.27
Agency expenses 1,163,200.26 1,460,232.39
R& D 10,940,877.48 15,804,933.22
Board fees 29,223.00 54,038.00
Other 3,718,815.43 3,221,999.30
Depreciation of fixed assets 3,360,019.17 3,298,774.50
Amortization of intangible assets 630,995.46 589,675.55
Amortization of long-term deferred
15,483.48
expenses
Low consumables amortization 8,487.70 10,060.00
Total 40,846,568.49 46,124,255.12
42.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 2,240,228.08 2,623,711.45
Interest income -17,274,220.29 -14,044,416.50
Exchange loss 1,753,688.28 19,620,000.69
Fees and other 1,242,947.35 773,521.92
Total -12,037,356.58 8,972,817.56
43.Loss of assets impairment
In RMB
Items Amount of current period Amount of previous period
I .Losses for bad debts 522,788.58 2,320,690.69
II. Losses for falling price of inventory 30,137,044.41 6,252,416.77
89
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Total 30,659,832.99 8,573,107.46
44.Investment income
In RMB
Items Amount of this period Amount of last period
Investment income from the disposal of
1,620,115.63 711,998.34
long-term equity investment
Hold the investment income during from
526,586.44 1,555,194.95
available-for-sale financial assets
Other 20,808,333.32
Total 22,955,035.39 2,267,193.29
45.Other income
In RMB
Source Amount of current period Amount of previous period
Government Subsidy 5,143,961.90
46. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Total gains from disposal of
1,510.00
non-current assets
Including：Gains from disposal
1,510.00
of fixed assets
Government Subsidy 517,000.00 2,165,711.40
Other 9,910.24 132,509.01
Total 528,419.77 2,298,220.41
Government subsidy reckoned into current gains/losses
In RMB
Whether the
Issuin Whether
impact of Amount of Assets-relate
g special Amount of
Items Reason Nature subsidies on previous d/income
subjec subsidie current period
the current period -related
t s
profit and
90
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
loss
Because company work on
Amortization of
specific industry that
high-tech
country encourage and
industrializati on Related to
Subsidy support, the company No No 100,000.00
demonstratio n assets
received grants (according
project matching
to national policy legally
funds
obtained)
New-style
Because company work on
industrializati on
specific industry that
of flat panel
country encourage and
display Related to
Subsidy support, the company No No 500,000.00
amortization of assets
received grants (according
State subsidy
to national policy legally
funds for special
obtained)
projects
Because company work on
Shenzhen
specific industry that
municipal
country encourage and
financial Related to
Subsidy support, the company No No 120,972.24
transfer loan assets
received grants (according
amortization of
to national policy legally
discount
obtained)
Because company work on
Amortization of
specific industry that
subsidy for the
country encourage and
industrializati on Related to
Subsidy support, the company No No 649,999.98
project of assets
received grants (according
polarizer for
to national policy legally
TFT-LCD
obtained)
Because company work on
Grant funds for specific industry that
TFT-LCD country encourage and
Related to
polarizer narrow Subsidy support, the company No No 250,000.02
assets
line (line 5) received grants (according
project to national policy legally
obtained)
Because company work on
Purchase of
specific industry that
imported Related to
Subsidy country encourage and No No 87,545.10
equipment and assets
support, the company
technology
received grants (according
91
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
to national policy legally
obtained)
Because company work on
specific industry that
Innovation and
country encourage and
venture capital Related to
Subsidy support, the company No No 25,000.02
for TFT-LCD assets
received grants (according
polarier I project
to national policy legally
obtained)
Shenzhen
Because company work on
polarizing
specific industry that
materials and
country encourage and
Technology Related to
Subsidy support, the company No No 25,000.02
Engineering assets
received grants (according
Laboratory
to national policy legally
innovation
obtained)
venture capital
Shenzzhen Because company work on
Engineering specific industry that
laboratory country encourage and
Related to
polarizing Subsidy support, the company No No 250,000.02
assets
material and received grants (according
technical to national policy legally
engineeting obtained)
Because company work on
specific industry that
Capital funding country encourage and
Related to
for Technology Subsidy support, the company No No 150,000.00
assets
Center received grants (according
to national policy legally
obtained)
Because company work on
specific industry that
Subsidy funds to
country encourage and
support the intr Related to
Subsidy support, the company No No 7,194.00
oduction of adva assets
received grants (according
nced technology
to national policy legally
obtained)
Shenzhen City
Because research and
Market and
development, technical Related to
Supervision and Subsidy No No 17,000.00
updates and transformation earnings
Management
of subsidies
Commission
92
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
allocated
intellectual
property patent
grant
Shenzhen
Science and
Technology
Because research and
Innovation
development, technical Related to
Committee Subsidy No No 500,000.00
updates and transformation earnings
allocated 2016
of subsidies
annual science
and technology
award
Total -- -- -- No No 517,000.00 2,165,711.40 --
47Non-current expenses
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Total of non-current asset
3,281.59 20,770.93
Disposition loss
Incl: loss of fixed assets
3,281.59 20,770.93
disposition
Other 196.77 58.85
Total 3,478.36 20,829.78
48Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 7,902,446.59 6,088,398.09
Deferred income tax expense -159,488.32 -1,851,202.65
Total 7,742,958.27 4,237,195.44
(2)Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits 20,279,393.89
93
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Income tax computed in accordance with the applicable tax rate 5,069,848.47
Effect of different tax rate applicable to the subsidiary Company -149,999.08
Influence of income tax before adjustment 46,012.28
Influence of non taxable income -186,675.52
Impact of non-deductible costs, expenses and losses 4,000.00
The current period does not affect the deferred tax assets
2,959,772.12
recognized deductible temporary differences or deductible loss
Income tax expense 7,742,958.27
49.Other comprehensive income
More details can be seen in Note 35.
50.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Government Subsidy 3,409,000.00 2,165,711.40
Bank deposit interest income and other 32,239,684.61 30,907,810.95
Total 35,648,684.61 33,073,522.35
Notes ：
(2)Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
R&D 10,940,877.48 15,804,933.22
Office Expense 351,040.92 579,633.65
Business fee 739,568.72 1,138,586.64
Travel expenses 400,427.52 511,070.78
Transportation fee 1,507,900.57 1,655,776.13
Agency Charge 1,163,200.26 1,460,232.39
Insurance expenses 144,107.56 151,170.29
Insurance expenses 1,310,312.83 2,258,972.58
94
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Rental fee 351,038.26 236,364.98
Exhibition expenses 128,319.69 144,038.99
Other 75,148,367.33 32,355,682.11
Total 92,185,161.14 56,296,461.76
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Fractional dividend 6.38
Structured deposits, financial products,
2,205,083,032.64
principal and income
Total 2,205,083,032.64 6.38
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit investment 1,883,000,000.00 368,000,000.00
Total 1,883,000,000.00 368,000,000.00
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
Obtain loans from affiliated parties 6,809,000.00
Total 6,809,000.00
51. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 12,536,435.62 -30,097,851.40
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Add: Impairment loss provision of assets -164,403.72 -13,629,724.46
Depreciation of fixed assets, oil and gas
40,264,166.05 37,072,204.67
assets and consumable biological assets
Amortization of intangible assets 630,995.46 589,675.55
Amortization of Long-term deferred
148,559.98 153,604.01
expenses
Loss on scrap of fixed assets 3,281.59
Financial cost -13,992,394.49 21,494,287.45
Loss on investment -22,955,035.39 -2,267,193.29
Decrease in deferred income tax assets 159,488.32 -240,628.26
Increased of deferred income tax liabilities -278,469.57
Decrease of inventories -13,178,629.92 14,425,655.98
Decease of operating receivables -56,290,615.85 -77,223,450.49
Increased of operating Payable -45,338,248.59 10,685,694.47
Net cash flows arising from operating
-98,176,400.94 -39,316,195.34
activities
II. Significant investment and financing
-- --
activities that without cash flows:
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 1,017,636,623.46 665,289,786.79
Less: Beginning balance of cash equivalents 930,114,436.57 748,658,875.60
Net increase of cash and cash equivalents 87,522,186.89 -83,369,088.81
(2)Composition of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 1,017,636,623.46 930,114,436.57
Including：Cash at hand 16,523.96 22,807.86
Demand bank deposit 1,015,320,995.68 928,279,046.07
Demand other monetary funds 2,299,103.82 1,812,582.64
III. Balance of cash and cash equivalents at
1,017,636,623.46 930,114,436.57
the period end
96
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
52.Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Including：USD 3,376,176.45 6.7744 22,871,569.74
HKD 175,388.67 0.86792 152,223.33
JPY 1,501,017.00 0.060485 90,789.01
Including：USD 6,873,634.63 6.7744 46,564,750.44
HKD 278,280.00 0.86792 241,524.78
Prepayment
Including：USD 1,151,820.19 6.7744 7,802,890.70
JPY 1,296,000.00 0.060485 78,388.56
Other receivable
Including：USD 37,399.02 6.7744 253,355.92
Short –term loans
Including：USD 2,097,385.58 6.7744 14,208,528.87
JPY 391,975,347.00 0.060485 23,708,628.86
Account receivable
Including：USD 13,659,004.25 6.7744 92,531,558.39
JPY 728,260,506.04 0.060485 44,048,836.71
Other payable
Including：USD 1,081,000.00 6.7744 7,323,126.40
Euro 22,500.00 7.7496 174,366.00
HKD 2,019,468.33 0.86792 1,752,736.95
(2) Note to overseas operating entities, including important overseas operating entities, wich should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In
case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
97
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
VIII. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Share-holding ratio Acquired way
Subsidiary Main operation Registered place Business nature
Directly Indirectly
Shenzhen Lishi
Domestic trade,
Industry 100.00% Establish
Shenzhen Shenzhen Property
Development Co.,
Management
Ltd
Accommodation, Establish
Shenzhen 100.00%
Shenzhen Shenzhen restaurants,
Huaqiang Hotel
business center;
Shenfang
Property Property 100.00% Establish
Shenzhen Shenzhen
Management Co., Management
Ltd.
Production of Establish
Shenzhen Beauty
fully electronic 100.00%
Century Garment Shenzhen Shenzhen
jacquard knitting
Co., Ltd.
whole shape
Shenzhen Polarizer
Shengbo
Ophotoelectric Shenzhen Shenzhen production and 60.00% Purchase
Technology Co., sales
Ltd
Shenzhen
Shenfang Import Operating import Establish
Shenzhen Shenzhen 60.00%
& export Co., and export
Ltd. business
Shengtou Establish
(Hongkong) Production and 60.00%
Hongkong Hongkong
sales of polarizer
Co.,Ltd.
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss attributable
Holding proportion of Dividend declared to Closing balance of
Name to non-controlling
non-controlling interest non-controlling interest non-controlling interest
interest
Shenzhen Shengbo
40.00% -3,750,772.54 1,092,904,549.22
Ophotoelectric
98
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Technology Co., Ltd
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Non-curr Non-curr
Subsidia Non-curr Non-curr
Current Total Current ent Total Current Total Current ent Total
ries ent ent
assets assets liabilities Liabilitie liabilities assets assets liabilities Liabilitie liabilities
assets assets
s s
Shenzhe
n
Shengbo
Ophotoel 2,233,50 943,817, 3,177,31 259,115, 186,877, 445,992, 2,430,23 844,274, 3,274,51 344,767, 189,042, 445,992,
ectric 0,664.69 184.34 7,849.03 777.68 185.92 963.60 7,623.43 184.45 1,807.88 093.78 897.32 963.60
Technolo
gy Co.,
Ltd
In RMB
Current term Last term
Cash flow Cash flow
Total Total
Subsidiaries Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Shenzhen
Shengbo
377,252,892. -129,287,756. 370,391,808. -48,666,956.3 -48,666,956.3 -88,012,720.7
Ophotoelectri -9,376,931.35 -9,376,931.35
13 72 49 7 7 8
c Technology
Co., Ltd
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
According to Capital Increase Agreement of Shenzhen Shengbo Optoelectronic Technology Co.,Ltd jointly
signed by the company, Shenzhen Shengbo Optoelectronic Technology Co.,Ltd, Hangzhou Jinjiang Group Co.,
Ltd and Hangzhou Jin Hang Equity Investment Fund Partnership (limited partnership)-which was set up by
Hangzhou Jinjiang Group Co., Ltd and Hangzhou Jinjiang Group Co., Ltd is the actual controller, Jin Hang Equity
Investment-as the main capital increase body-subscribed 40% stake of Shenzhen Shangbo Optoelectronic
Technology Co.,Ltd, and the amount of capital increase was RMB 1,352,640,000.00, and such amount of capital
increase was received in the account before December 27, 2016. After this capital increase, the stake of Shengbo
Optoelectronic Technology Co.,Ltd held by the company was down to 60.00% from 100%.
After the capital increase, the minority shareholders' interests calculated according to the net assets of Shenzhen
Shengbo Optoelectronic Technology Co.,Ltd is RMB 1,100,564,805.80(based on the data of December 31, 2016),
99
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
and the difference of the above-said amount of capital increase is adjusted for the consolidated statement with
capital reserve of RMB 252,075,194.20.
(3).Equity in joint venture arrangement or associated enterprise
1．Joint venture or associated enterprise
Holding proportion(%) The accounting
Joint venture or
Place of treatment of
associated Place of operation Nature
registration Directly Indirectly investment in
enterprise
associates
Shenzhen Haohao
Property Leasing Shenzhen Shenzhen Property leasing 50.00% Equity method
Co., Ltd.
Shenzhen Xieli Equity method
Automobile Co., Shenzhen Shenzhen Property leasing 50.00%
Ltd.
Shenzhen Equity method
Changlianfa
Shenzhen Shenzhen Property leasing 40.25%
Printing and
dyeing Company
Jordan Garment Equity method
Jordan Jordan Manufacturing 35.00%
Factory
Yehui Equity method
International Co., Hongkong Hongkong Manufacturing 22.75%
Ltd.
2.The Summarized Financial Information of Unimportant Joint Ventures and Associated Enterprises
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture： -- --
Total book value of the investment 8,853,123.69 9,083,538.02
Total amount of the pro rata calculation of
-- --
the following items
-- Net profit -230,414.33 890,393.17
-- Total comprehensive income -230,414.33 890,393.17
Associated enterprise： -- --
Total book value of the investment 15,607,558.14 15,765,772.98
100
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Total amount of the pro rata calculation of
-- --
the following items
--Net profit 450,529.96 577,010.12
--Other Comprehensive income -399,320.80 1,436,844.30
--Total comprehensive income 51,209.16 2,013,854.42
(4) Significant common operation
Proportion /shareportion
Name Main operating place Registration place Business nature
Directly Indirectly
Guanhua Building Shenzhen Shenzhen Cooperate 50.16%
Other notes
According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on coopera
tive development and construction of Guanhua building", jointly developed Guanhua building construction, the co
mpany invested 50.16%, Hong Qiao Hui Industrial Co., Ltd. invested 49.84%, the two sides need to agree matters
affecting the cooperation projects.
Guanhua Building project has been completed in the current reporting period, and the two parities carried out the
split according to the actual investment ratio of 50.16% and 49.84%.
IX. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank
deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the
receivables, the company has developed the relevant policies to control the credit risk, and set up the
corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of
debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the
company shall regularly monitor the debtor’s credit history. With regard to the bad credit record for the debtor, the
company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks
within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments
affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
101
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest
rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of
the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative
proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the
price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as
possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets.
The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance,
the marketable securities available to be cash and the rolling forecast for the future cash flow.
X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items
Fir value measurement Fir value measurement Fir value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(1).Available for sale
8,812,453.02 8,812,453.02
financial assets
1.Equity instrument
8,812,453.02 8,812,453.02
investment
Total of Consistent fair
8,812,453.02 8,812,453.02
value measurement
II. Non –persistent
-- -- -- --
measure
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
The fair value of financial assets available for sale at the end of period is measured based on the closing price of
Shenzhen Stock Exchange on June 30,2017.
102
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
XI. Related parties and related-party transactions
1.Parent company information of the enterprise
Registered capital The parent company The parent company
Name Registered address Nature of the Company's of the Company’s
（RMB’0000） shareholding ratio vote ratio
18/F, Investment Equity investment ,
Shenzhen
Building, Shennan Real-estate
Investment Holdings 2,158,000.00 46.21% 49.39%
Road, Futian Development and
Co.,Ltd.
District, Shenzhen Guarantee
Notes
The company is authorized and approved to be state-owned independent company by Shenzhen Government, and
it Executes financial contributor function on state-owned enterprise within authorization scope.
The finial control of the Company was Shenzhen People’s Govemment state owned assets supervision &
Administration Commission.
2.Subsidiaries of the Company
Details refer to the Note VIII-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VIII-3, Interests in joint ventures or associates
4.Other Related parties information
Other related party Relationship to the Company
Shenzhen Shenchao Technology Investment Co., Ltd. Subject to the same party controls
Shenzhen Tianma Microelectronics Co., Ltd. Chairman of the Board Is the Vice Chairman of the Company
Shengbo （HK）Co., Ltd. The Company Executives are Director of the company
Shenzhen Xiangjiang Trade Co., Ltd. Sharing Company
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Anhui Huapeng Textile Co., Ltd. Sharing Company
On the subsidiary Shenzhen Shengbo Optoelectronics Technology
Kunshan Jinlin Optoelectronic Material Co., Ltd. Co., Ltd. has a significant impact on the actual control of the
shareholders controlled by the enterprise
103
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
On the subsidiary Shenzhen Shengbo Optoelectronics Technology
Zhejiang Jinhao Optoelectronic Material Co., Ltd. Co., Ltd. has a significant impact on the actual control of the
shareholders controlled by the enterprise
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Related party Content Amount of current period Amount of previous period
Shenzhen Tianma
Sales polarizer sheet 3,044,298.73 957,463.47
Microelectronics Co., Ltd.
(2)Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
1,897,026.00 1,869,653.00
personnel
（3）Other related transactions
For the construction of the project of polarizer sheet for TFT-LCD, the Company signed Entrusted Loan Contract
with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of
Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology
Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd.
to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the
first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted
loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus 2%. In case of
adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment
minus 2% shall apply as interest rate of entrusted loan from the first day of the next month after the adjustment of
basic interest rate.As of June 30, 2017, The Company actually received a loan of RMB 80 million.
6. Receivables and payables of related parties
（1）Receivables
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
Account Shenzhen Tianma
2,004,949.89 100,247.49 256,427.69 12,821.38
receivable Microelectronics Co., Ltd.
Other
Anhui Huapeng Textile 2,700,000.00 135,000.00 3,600,000.00 270,000.00
Account
104
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
receivable Company
Other
Shenzhen Dailishi Underwear
Account 0.00 0.00 300,048.12 15,002.41
Co., Ltd.
receivable
Other
Kunshan Jinlin Optoelectronic
Account 15,738,000.00 786,900.00
Material Co., Ltd.
receivable
Other Zhejiang Jinhao
Account Optoelectronic Material Co., 36,395,640.50 1,819,782.03
receivable Ltd.
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Shenzhen Xinfang Knitting Co.,
Other payable 244,789.85 244,789.85
Ltd.
Shenzhen Xiangjiang Trade
Other payable 0.00 40,000.00
Co., Ltd.
Shenzhen Changlianfa Printing
Other payable 846,503.89 846,503.89
and dyeing Co., Ltd.
Shenzhen Haohao Property
Other payable 5,304,489.85 4,954,489.85
Leasing Co., Ltd.
Other payable Yehui International Co.,Ltd. 7,953,264.42 1,214,994.65
Other payable Shengbo （Hongkong）Co., Ltd. 315,000.00 315,000.00
Shenzhen Shenchao Technology
Interest payable 44,446,217.66 42,805,384.31
Investment Co., Ltd.
XII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Classification Book balance Bad debt provision Book Book balance Bad debt provision
Book value
Amount Proportio Amount Proportion( value Amount Proporti Amount Proportion
105
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
n(%) %) on(%) (%)
Accounts receivable
subject to impairment
754,308. 37,715.4 716,593. 518,920.
assessment by credit 100.00% 5.00% 100.00% 25,945.99 5.00% 492,974.01
80 3 37 00
risk characteristics of
a portfolio
754,308. 37,715.4 716,593. 518,920.
Total 100.00% 5.00% 100.00% 25,945.99 5.00% 492,974.01
80 3 37 00
Receivable accounts with large amount individually and bad debt provisions were provided.
□Applicable √Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√Applicable □Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Subitem Within 1 year
754,308.80 37,715.43 5.00%
Total 754,308.80 37,715.43 5.00%
Notes：
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicable
In the groups, Receivable accounts on which had debt provisions are provided by other ways in the portfolio
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB11,769.44.
\
2.Other receivable
1．Classification of Other receivable
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Proportio Proportio Proportio Proportion(
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Other accounts 11,981,4 11,981,4 11,981, 11,981,46
53.96% 100.00% 41.08% 100.00%
receivable of 64.60 64.60 464.60 4.60
106
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
individual
significance and
subject to individual
impairment
assessment
Other accounts
receivable subject to
impairment 9,910,53 682,020. 9,228,512 16,870, 4,345,920 12,524,256.
44.64% 6.88% 57.85% 25.76%
assessment by credit 3.14 76 .38 177.62 .87 75
risk characteristics of
a portfolio
Other accounts
receivable of
individual
311,486. 311,486. 311,486 311,486.3
insignificance but 1.40% 100.00% 1.07% 100.00%
35 35 .35 5
subject to individual
impairment
assessment
22,203,4 12,974,9 9,228,512 29,163, 16,638,87 12,524,256.
Total 100.00% 100.00%
84.09 71.71 .38 128.57 1.82 75
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □Not applicable
In RMB
Amount in year-end
Debtor Other account Withdrawal proportion
Bad debt provision Reason for allowance
receivable (%)
Jiangxi Xuanli String Co.,
11,389,044.60 11,389,044.60 100.00% Unable to recover
Ltd.
Shenzhen Tianlong
592,420.00 592,420.00 100.00% Unable to recover
Induatry& Trade Co., Ltd.
Total 11,981,464.60 11,981,464.60 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
8,251,631.66 412,568.52 5.00%
107
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Within 1 year 8,251,631.66 412,568.52 5.00%
1-2 years 1,400,000.00 140,000.00 10.00%
Over 3 year 258,901.48 129,452.24 50.00%
Total 9,910,533.14 682,020.76
Notes：
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
（2）Bad debt provision accrual collected or switch back
The withdrawal amount of the bad debt provision during the reporting period was of RMB170,000.00;The amount
of the reversed or collected part during the reporting period was of RMB3,833,900.11.
(3) Other account receivables category by nature of money
In RMB
Category Year-end balance Year-beginning balance
Internal current account 7,075,831.24 12,244,280.72
Unit account 15,091,837.85 16,806,675.87
Other 35,815.00 112,171.98
Total 22,203,484.09 29,163,128.57
(4)Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
First Unit account 11,389,044.60 Over 3 years 51.29% 11,389,044.60
Second Unit account 7,075,600.00 1-2 years 31.87% 457,800.00
Third Unit account 1,800,000.00 Within 1 year 8.11% 90,000.00
Fourth Unit account 592,420.00 Over 3 years 2.67% 296,210.00
Fifth Unit account 146,176.80 Over 3 years 0.66% 73,088.40
Total -- 21,003,241.40 -- 94.59% 12,306,143.00
3.Long-term equity investment
In RMB
108
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,980,806,395.91 16,582,629.30 1,964,223,766.61 1,980,806,395.91 16,582,629.30 1,964,223,766.61
subsidiary
Investment to
joint ventures and
24,727,336.82 266,654.99 24,460,681.83 25,115,965.99 266,654.99 24,849,311.00
associated
enterprises
Total 2,005,533,732.73 16,849,284.29 1,988,684,448.44 2,005,922,361.90 16,849,284.29 1,989,073,077.61
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen Shengbo
Optoelectrionc
1,924,663,070.03 1,924,663,070.03 14,415,288.09
Technology Co.,
Ltd.
Shenzhen Lisi
Industrial
8,073,388.25 8,073,388.25
Development Co.,
Ltd.
Shenzhen Beauty
Centruty Garment 30,867,400.00 30,867,400.00 2,167,341.21
Co., Ltd.
Shenzhen
15,489,351.08 15,489,351.08
Huaqiang Hotal
Shenfang Property
Management Co., 1,713,186.55 1,713,186.55
Ltd.
Total 1,980,806,395.91 1,980,806,395.91 16,582,629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Opening Closing
Name Add Decrease Gain/loss Adjustme Other Declarati Withdraw balance
balance Other balance
investmen d of nt of equity on of cash n of
109
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
t investmen Investme other changes dividends impairme impairme
t nt comprehe or profit nt nt
nsive provision provision
income
I. Joint ventures
Shenzhen
Haohao
5,106,487 -230,414. 4,876,073
Property
.57 33 .24
Leasing
Co., Ltd.
Shenzhen
Xieli
4,243,705 4,243,705 266,654.9
Automobi
.44 .44 9
le Co.,
Ltd.
9,350,193 -230,414. 9,119,778 266,654.9
Subtotal
.01 33 .68 9
II. Associated enterprises
Shenzhen
Changlian
fa
1,968,358 2,025,788
Printing 57,430.75
.12 .87
and
dyeing
Company
Jordan
2,574,327 -326,511. -56,469.0 2,191,347
Garnent
.77 57 1 .19
Factory
Yehui
Internatio 11,223,08 719,610.7 -342,851. 209,424.0 11,390,42
nal Co., 7.09 8 79 0 2.08
Ltd.
15,765,77 450,529.9 -399,320. 209,424.0 15,607,55
Subtotal
2.98 6 80 0 8.14
25,115,96 220,115.6 -399,320. 209,424.0 24,727,33 266,654.9
Total
5.99 3 80 0 6.82 9
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main 30,244,081.73 4,477,749.55 29,952,072.64 4,007,116.78
110
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
Business
Other Business income 1,605,516.30 1,605,516.29 1,646,987.54 1,646,987.54
Total 31,849,598.03 6,083,265.84 31,599,060.18 5,654,104.32
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
80,000.00
measured by adopting the cost method
Income from long-term equity investment
1,620,115.63 2,039,333.34
measured by adopting the Equity method
Investment income received from holding of
526,586.44 147,859.95
available-for –sale financial assets
Total 2,146,702.07 2,267,193.29
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal
gain/loss(including the write-off part for -1,771.59
which assets impairment provision is made)
Govemment subsidy recognized in current
gain and loss(excluding those closely related
5,660,961.90
to the Company’s business and granted
under the state’s policies)
Gain/loss on entrusting others with
20,808,333.32
investment or asset management
Gain/loss on Contingent events irrelevant to
418,132.96
the Company’s normal business
Other non-business income and expenditures
5,593,047.35
other than the above
Less :Influenced amount of income tax 1,506,457.54
Influenced amount of minor shareholders’
12,228,218.24
equity (after tax)
Total 18,744,027.98 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
111
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2017
the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the
Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnngs per share
Earningspershare
Profit of report period Weightedaverage retureon eqiuty(%) Basicearningspershare(R Diluted eqrnings per
MB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of 0.61% 0.03 0.03
Company.
Net profit attributable to the
Common stock shareholders of
-0.18% -0.01 -0.01
Company after deducting of
non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
112
