Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2019
August 2019
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
I. Important Notice, Table of Contents and Definitions
The Board of Directors，the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
Mr. Zhu Jun, The Company leader, Mr. Zhu Meizhu, the Person in Charge of the Accounting Works, Ms. Di Yan,
Chief Financial Officer and Ms. Mu Linying, the Person in Charge of the Accounting Department (the person in
charge of accounting) hereby confirm the authenticity and completeness of the financial report enclosed in the
semi-report.
All the directors attended the board meeting for the review of this Report.
I. Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors should be cautious with investment risks.
II. The company has the macroeconomic risks, market competition risks and raw material risks. Investors are
advised to pay attention to investment risks. For details, please refer to the possible risk factors that the company
may face in the “X Prospects for the future development of the company" in the “Section IV Discussion and
Analysis of Business Operation”.
III.The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily,
Shanghai Securities News , Hongkong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）are the
media for information disclosure appointed by the Company, all information under the name of the Company
disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Table of Contents
I. Important Notice and Definitions
II. Corporate Profile and Key Financial Results
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds.
X .Financial Report
XI. Documents available for inspection
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National Assets Regulatory
National Assets Regulatory Commission of Shenzhen Municipal
Commission of Shenzhen Municipal People's Refers to
People's Government
Government
The Controlling shareholder/ Shenzhen
Refers to Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
Shengbo Optoelectronic Refers to Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Jinjiang Group Refers to Hangzhou Jinjiang Group Co., Ltd.
Nitto Denko Refers to Nitto Denko Corporation
Kunshan Qimei Refers to Kunshan Zhiqimei Material Technology Co., Ltd.
Jinhang Investment Refers to Hangzhou Jinhang Equity Investment Fund Partnership (LP)
Jinxin Investment Refers to Lanxi Jinxin Investment Management Co., Ltd.
Changxing Junying Refers to Changxing Junying Eqkuity Investment Partnership（LP）
Huaiji Investment Refers to Hangzhou Huaiji Investment Management Co., Ltd.
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Line 7 Refers to Industrialization project of polaroid for super large size TV
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to The Semi-annual Report 2019
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
II. Basic Information of the Company and Financial Index
Ⅰ.Company Information
Stock abbreviation Shen Textile A ,Shen Textile B Stock code： 000045,200045
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE (HOLDINGS)CO.,LTD
English abbreviation (If any) STHC
Legal Representative Zhu Jun
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
III.Other
(1) Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2018 Annual Report.
(2) Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2018.
IV.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 1,008,863,295.50 474,262,408.57 112.72%
Net profit attributable to the shareholders
7,832,287.98 9,646,976.15 -18.81%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -10,548,582.20 -10,817,314.92 2.48%
listed company（RMB）
Cash flow generated by business operation,
23,826,362.35 -128,850,889.44 118.49%
net（RMB）
Basic earning per share(RMB/Share) 0.0153 0.0190 -19.47%
Diluted gains per
0.0153 0.0190 -19.47%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.32% 0.40% -0.08%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 4,384,396,778.74 4,619,203,416.79 -5.08%
Net assets attributable to shareholder of
2,580,594,659.88 2,373,329,991.86 8.73%
listed company（RMB）
V. 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
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
12,236,686.25
for which assets impairment provision is made)
Govemment subsidy recognized in current gain and
loss(excluding those closely related to the Company’s business 11,035,139.06
and granted under the state’s policies)
Other non-business income and expenditures other than the above 4,241,169.03
Less :Influenced amount of income tax 3,121,789.28
Influenced amount of minor shareholders’ equity (after tax) 6,010,334.88
Total 18,380,870.18 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(I) The company's main business
The company's main business covered such the high and new technology industry as represented by LCD
polarizer, its own property management business and the retained business of high-end textile and garment
Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel
display industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers and
TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on
many fields. The company’s five existing production lines of polarizer with mass production have products
covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products
mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones,
wearable devices, 3D glasses, sunglasses and so forth products, The company expands its sales channels and
builds its own brand by constantly strengthening its sales channels.becoming the qualified supplier to Huaxing
Optoelectronic, BOE, Ivo, Shenchao Optoelectronic ,LGD ,Tianma,and so forth panel companies.
During the reporting period, the company’s business is introduced as follows:
Firstly, the Company, driven by innovation, is committed to improving product quality and optimizing product
structure continuously. The Company actively promotes LGD, Huike, BOE, Sharp and other key customers
through the transformation of production line equipment, sustained optimization of process, continuous
adjustment of product structure, acceleration of market development and product promotion; Secondly, the
Company sets out to explore alternative import routes of raw materials, and strengthen independent intellectual
property R&D. The Company continues to develop new products, actively carries out evaluation of new materials,
focuses on the reduction of raw materials, and promotes the introduction of new materials; Thirdly, the
construction of polarizer industrialization project (Line 7) for oversize televisions is advanced. Line 7 has entered
the stage of comprehensive construction, and has obtained all kinds of permits required for construction at this
stage. The company will continue to strengthen the monitoring and management of budget, progress and quality,
and strive to ensure that all work is completed in accordance with the plan; Fourthly, the management of property
enterprises is strengthened. The quality of property and hotel services is improved in order to actively respond to
the adverse impact of the real economy downturn on property leasing. The leasing situation is stable, showing a
steady upward trend. Fifthly, the textile industry continues to make up deficits. Despite the adverse factors such as
the recession of the industry, the rise of raw materials and labor costs, the number of customers' orders has
rebounded in traditional textile business during the reporting period. Sixthly, the Company pays attention to safety
production and environmental protection, concentrates on rectifying and investigating safety and environmental
protection issues, advances the construction of safety information technology, promotes the safe and stable
development of enterprises and actively fulfills social responsibility.
(II) Operation model
The priority of the polarizer industry is gradually shifting from the conventional research &
development-production-sales business model to the customer-oriented business model of joint research &
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
development and full service. The Company reduces production links and costs and creates value for customers
and a win-win situation through cooperation by deeply understanding customers' needs, making high-quality
products through joint research & development and high-standard production management and using advanced
polarizer rolling and attaching equipment in conjunction with downstream panel manufacturers' production lines.
(III) Major performance drivers
Refer to "III. Analysis on core competitiveness" in this section for details.
Relying on more than 20 years of industrial operation experience and regional advantages, the Company will
deepen the mixed-ownership reform work and strengthen strategic cooperation. To be specific, the Company will
further promote its production technology and business management standards through integration of resources in
the polarizer and optical film industries; meanwhile, the Company will seize the opportunity and spare no effort to
push forward the construction of an ultra-wide polarizer production line to occupy the highly lucrative jumbo
LCD TV polarizer product market; in addition to working on the polarizer industry, the Company will make a
leaping development towards the optical film industry related with flat panel display to make SAPO a bigger and
stronger enterprise.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
At the end of the period, the Construction in process increased by RMB 79.3717 million
Construction in process compared with the beginning of the period, an increased of508.10%, Mainly due to the
current investment of Line 7 project.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Technology advantages.
SAPO is the first domestic national high-tech company which entered into the R&D and production of the
polarizer，We are one of the largest, most technical and professional polarizer R&D teams in the country and has
more than 20 years of operating experience in the polarizer industry. Products include TN-type, STN-type,
IPS-TFT-type, VA-TFT-type, vehicle-mounted industrial display, flexible display, 3D stereo and polarizer for
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
sunglasses, and optical film for touch screens, etc., We have proprietary technology for polarizers and new
intellectual property rights for various new products. By the end of the reporting period, SAPO has applied for 94
patents in total (66 licensed), including 26 national invention patents (8 licensed), 61 national utility model patents
(54 licensed), 1 international invention patent (0 licensed) and 6 international utility model patents (4 licensed).
SAPO studied and formulated 4 national standards and 2 industrial standards which have been adopted and put
into practice. SAPO has two technical platforms--"Shenzhen Polarizing Materials and Technology Engineering
Lab" and "Shenzhen Municipal Research and Development Center" where focus is given to research &
development and industrialization of key LCD polarizer production techniques, research & development and
industrialization of new OLED polarizer products and research on localization of polarizer production materials.
Through the introduction of various types of sophisticated testing equipments to perfect the test means of
small-scale test and medium-scale test, further by improving the incentive system of research and development
and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so forth means,
the company comprehensively enhanced the level of research and development.
(2) Talents advantages.
Equipped with a polarizer management team and senior technical personnel team with strong technical ability,
long cooperation, rich experience and international vision, the Company has built its own property rights system
and technical team. In order to grasp the development opportunities of oversize polarizer business in China,
construct super-wide polarizer production line as soon as possible, seize the market opportunities and realize
economies of scale, SAPO jointly with Kunshan Zhiqimei and Jinjiang Group entered into a Contract of Technical
Cooperation with Nitto Denko Corporation, a world-class polarizer manufacturer on matters pertaining to
introduction of techniques of 2,500 mm polarizer production line on November, 2017. Nitto Denko owns leading
production and manufacturing technology of polarizers in the industry. SAPO establishes technical cooperation
relations with Nitto Denko, through which the Company has learnt advanced polarizer production and
management idea. At the same time, the Company improves his core competitiveness, and gradually accumulate
the advantages of the brand, technology, operation management and others through the accumulation of
independent innovation technology experience and establishes a scientific and technological progress and
management innovation through the distribution of perfecting examination system and incentive system to
prioritize salary incentive toward the core backbone of management, research and development and to give full
play to the subjective initiative and creativity.
(3) Market advantages.
The company has a good market customer base at home and abroad. Compared with foreign advanced
counterparts, the biggest advantage lies in localization, close to panel market and strong support of national
policies. In terms of market demand, with the construction and planning of Generation 10.5/Generation 11 and
advanced generation TFT - LCD panel production line production in succession, the production capacity of
advanced generation TFT-LCD panels will increase considerably in the next few years in mainland China, and the
corresponding domestic market demand for polarizers will also grow. The domestic market is the most important
market for polarizer manufacturers, especially the large-scale polarizer market, which will usher in important
industry opportunities in mainland China; When it comes to market development, focused on customers' needs,
the Company will keep optimizing its production process and product structure, tighten quality control and well
bind production and sales together, build a quick response mechanism, give full play to its local strengths, take
advantage of all the techniques and talents accumulated, provide good point-to-point professional services,
promote the verification of all types of machinery concerning the overall strategic deployment and form a stable
supply chain to increase its market share.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(4) Quality advantages.
The company always adheres to the quality policy of “meeting customer needs and pursuing excellent quality”,
attaching great importance to product quality control to make products up to the international quality standard.
The company has strictly controlled product performance indicators, standardized incoming inspection standard,
to achieve simultaneous improvement in output and quality by improving quality and reducing
consumption.through the introduction of a modern quality management system, the products have passed
ISO9001 Quality Management System and ISO14001 Environmental Management System, OHSAS18000
Occupational Health and Safety Management System, QCO80000 System Certification; the product is tested by
SGS and meets the environmental protection ,The company had increased the automatic detecting and marking
equipments in the beginning section and the ending section, strictly controlled the product quality and improved
the product utilization rate and product management efficiency.
(5) Management advantages.
The Company has been deeply cultivating the industry for more than 20 years and has accumulated rich
management experience in the production of polarizer. It has the most advanced polarizer production management
process control system, quality management system and stable raw material supply channels. The Company has
carried out comprehensive benchmarking work, organized managers to learn advanced experience from customers
and peers, vigorously implemented standardized management, refined management process, learned from foreign
polarizer business management experience, optimized the Company's organizational structure, reduced
management levels, and further improved the Company's management efficiency. After introduction of strategic
investors, the Company learns from others' strong points and close the gap through the reform of mixed ownership
system, absorb the vitality of private enterprises, continues to implement advanced management system and
reasonable incentive mechanism, improves decision-making efficiency, speeds up market reaction, perfects R&D
incentive system, and realizes the value of enterprises and employees , learn from each other's strengths and make
up for the weaknesses, absorb the vitality of private enterprises, continues to the in-depth integration of the value
of the company and employees, and stimulates new vitality in business.
(6) Policy advantages.
Polarizer is seen as an essential part of the panel display industry and SAPO in its development has promoted the
supply capacity of national polarizers, greatly lowered the dependence of national panel enterprises on imported
polarizers, and safeguarded the national panel industry, which serves as a good facilitator to enhancing the overall
competitiveness of China's panel industry chain and coordinated development of the whole industry chain of the
panel display industry cluster in Shenzhen. Recognized as a national high-tech enterprise, SAPO is entitled to the
preferential policy for duty-free import of own productive raw materials that cannot be produced at home and
frequently gained national, provincial and municipal policy and financial support in its polarizer projects.
Meanwhile, SAPO tightened supplier management, improved its overall purchasing strategy, and downsized
suppliers while introducing a competitive mechanism, wherein focus was given to introduction of new materials at
a competitive price, to further lower its production cost and improve its product competitiveness.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2019, the Company insisted on developing the polarizer industry, focusing on the main business,
improving its profitability, accelerating the construction of the Line 7 project of polarizer, and further deepening
the reform of mixed ownership. Firstly, the Company continuously improves the production and operation
capacity of polarizer by improving product quality, optimizing product structure, actively exploring the market
and exploring the substitution of raw materials. Meanwhile, centering on the target of reducing losses and
increasing profits, the Company takes various measures to promote management optimization. Secondly, the
Company makes every effort to build the industrialization project of super-large polarizer for TV (Line 7) in order
to grasp the development opportunities of domestic super-large polarizer business; Thirdly, the Company strives
to improve the plight of textile and garment business and actively promotes the introduction of strategic investors
introduced by Shenzhen Beauty Century Co., Ltd., a subsidiary company; Fourthly, the capital increase and share
expansion and open leasing to Guanhua Company are completed to realize lease income. At the same time,
improve the level of property services, property leasing steadily increased; Fifthly, the main responsibility of
safety production is implemented to achieve the safe development of the company.
During the reporting period, the Company realized the operating income of RMB 1008.8633 million, representing
an increase of RMB534.6009 million or 112.72% over the same period of last year; the total profit was RMB 4.0462
million, representing a decrease of RMB5.8338 million or 59.05% over the same period last year; the net profit of
shareholders attributable to listed companies was RMB 7.833 million, which was RMB 1.8147 million lower than
that of the same period last year and 18.81% lower than that of the same period last year. The Company's business
income has increased considerably compared with the same period last year. The main reasons are as follows: One
the one hand, TFT-LCD Phase II Line 6 was put into operation in the second half of 2018, its production capacity
was released in the current year, and its sales volume increased year on year; One the other hand, the import trade
business that has paid in advance for equipment in 2018 was completed in this reporting period, while the trade
business was less in the same period last year. During the reporting period, the net profit attributable to
shareholders of listed companies decreased slightly compared with the same period last year. The reason is that
the price of main polarizer products has been maintained at a low level since the sharp decline in 2018 and the
average price of polarizer products has decreased compared with the same period last year, offsetting the
contribution of the rising sales volume to net profit.
Reviewing the first half of 2019, the company focused on the key work, with contents as follows:
(I) Various measures to enhance the profitability and R&D capability of polarizer business
During the reporting period, firstly, the Company continued to optimize production process and improve product
quality and continued to improve production capacity and reduce losses through measures such as equipment
transformation of Line 4 and speed increase of Line 6. After the relocation of Line 1-3, equipment assembly,
linkage test and fine adjustment were completed rapidly. Secondly, the Company optimized the product structure
and actively developed the product market. The Company continuously adjusted the product structure, reduced the
proportion of negative gross margin products orders, gave priority to high gross margin orders, speeded up market
development and product import and actively promoted key customers such as LGD, HKC, BOE, Sharp, etc. in
order to enhance the overall profitability; Thirdly, the Company continued to do a good job in R&D innovation
and to explore alternative import of raw materials. During the reporting period, the Company continued to develop
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
new products, increased product performance improvement, carried out new material evaluation and introduction,
and put emphasis on price reduction of major raw materials.
Meanwhile, the research and development of independent intellectual property rights was strengthened. The
Company applied for 3 patents (inventions) and 7 patents were granted authorization notices. The two national
standards "Measurement of Optical Compensation Value for Polarizers" and "Test Method of Adhesion of Optical
Film Coatings for Polarizers" researched and developed by the Company have been formally implemented.
Relying on two technical platforms--"Shenzhen Polarizing Materials and Technology Engineering Lab" and
"Municipal Research and Development Center", the Company focuses on research & development and
industrialization of key LCD polarizer production techniques, research & development and industrialization of
new OLED polarizer products and research on localization of polarizer production materials. In addition, the
Company actively expands investment in R&D funds, horizontally explores the innovative development of mature
products, and enhances the sustainable development ability of enterprises.
(II) Actively promote the construction of Line 7 project
Line 7 project has entered the stage of comprehensive construction, and has obtained all kinds of permits required
for construction at this stage. The project construction team of the Company has arranged construction milestone,
striving to complete the work on time and with high quality. The Company will further strengthen the monitoring
and management of budget, schedule and quality in the process of project construction, and actively promote
technical exchanges with Nitto Denko and Kunshan Zhiqimei to promote the research and development of raw
materials for Line 7 project. The leadership of the Company led a team to visit the major raw material
manufacturers in Japan and conducted business cooperations based on the friendly consultation and negotiation,
basically determining the supply source of the main raw material, and solving the supply problem of the raw
material for matching polarizer production of Line 7 by 2020.
(III) The textile industry has continued to make up deficits and other enterprises showed a steady upward trend
During the reporting period, Despite the adverse factors such as the recession of the industry, the rise of raw
materials and labor costs, the number of customers' orders in traditional textile business has rebounded during the
reporting period. The Company actively promoted the introduction of strategic investors introduced by Shenzhen
Beauty Century Garment Co., Ltd., a subsidiary company.
(IV) Complete the capital increase of Guanhua Company and strengthen the management of property enterprises,
showing a steady rise in property rental income.
During the reporting period, the Company increased its capital and shares by the same proportion with the real
assets of Guanhua Building in order to improve the contribution obligation of both the shareholders of the
Company and Qiaohui Textile Industrial Co., Ltd. to Shenzhen Guanhua Printing & Dyeing Co., Ltd. After the
capital increase, the registered capital of Guanhua Company increased from RMB 10 million to RMB 109.5517
million. In June, Guanhua Company completed the overall external lease of Guanhua Building, and has received a
total of RMB 10.2032 million in rental deposit and first quarter rent from the lessee. In addition, other property
enterprises have strengthened management, and improved the quality of property and hotel services to actively
overcome the pressure brought by the downturn of the real economy on property leasing. The leasing situation is
stable, showing a steady upward trend.
(V) Attach importance to safety in production and take preventive measures, so as to promote the safe
development of enterprises
During the reporting period, the Company firstly implemented the responsibility system for production safety and
implemented the responsibility for production safety to individuals; Secondly, the Company focused on
investigation and centralized rectification of potential safety hazards. The Company inspected the on-site safety
problems of the affiliated enterprises without notification, issued the rectification notice of potential safety hazards
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
and problems in time, and required them to complete the rectification. In the meantime, the Company put
emphasis on the construction safety of Line 7 project, carried out special safety hazard investigation at the
construction site, and organized safety warning education and training at the site. Thirdly, the Company actively
carried out the monthly activities of safe production, timely completed the information input and maintenance of
the information platform, and promoted the construction of safety information.
(VI) Constant reinforcement of foundation and strengthening of grass-roots party construction
Firstly, the Company should conscientiously carry out various forms of activities such as theoretical study of the
central group and "Three Meeting and One Class", and conduct in-depth special education activities of "remain
true to our original aspiration and keep our mission firmly in mind" according to the work deployment of the Party
Committee at higher level; Secondly, the Company should strengthen organizational construction and complete
the centralized change of Party organizations directly under the unified requirements of the Organizational
Department of the CPC Shenzhen Municipal Committee. Thirdly, the Company should conscientiously fulfill the
responsibility of supervising the construction of a clean and honest Party conduct, strengthen the study of honest
education and build a strong ideological defense line of honesty and self-discipline; Fourthly, the Company should
strengthen the system learning and training, fulfill the responsibility of discipline supervision and accountability,
strengthen supervision and inspection, and strengthen restraint; Fifthly, the Company should conscientiously do a
good job in the election of the trade union of the Company, strengthen the enterprise culture, and conscientiously
carry out the work of maintaining the stability by letters and visits to escort the development of the Company.
II.Main business analysis
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
TFT-LCD Phase II Line
6 was put into production
in the second half of
2018. The production
Operating income 1,008,863,295.50 474,262,408.57 112.72%
capacity was released in
the same year, with a
year-on-year increase on
sales volume.
The reason is the same as
Operating cost 940,587,510.73 415,092,958.33 126.60%
income growth
Due to increase in sales
volume, transportation
Sale expenses 7,369,804.52 3,780,411.53 94.95%
costs and insurance
premiums
Administrative expenses 42,901,879.68 41,239,119.73 4.03%
Exchange losses
Financial expenses -730,687.94 -3,852,587.66 -81.03%
increases due to changes
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
in yen exchange rate
during the reporting
period
The total profits of the
parent company
Income tax expenses 9,773,007.83 5,321,864.53 83.64% increases compared with
last year, and the income
tax expenses increases
R & D Investment 19,172,388.20 21,189,099.82 -9.52%
During the reporting
period, the trade
Cash flow generated by
23,826,362.35 -128,850,889.44 118.49% receivables of the
business operation, net
previous year are
recovered
Investment in structural
Net cash flow generated
-450,772,543.46 -81,631,016.04 -452.20% deposits increased during
by investment
the reporting period
Repayment of some
Net cash flow generated
-451,630,120.04 64,472,159.75 -800.50% loans during the
by financing
reporting period
Net increasing of cash
-878,027,966.87 -146,504,345.47 -499.32%
and cash equivalents
Major changes in profit composition or courses during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Breakdown of main business
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
On Industry
Domestic and
312,992,303.03 292,353,664.49 6.59% 263.62% 252.48% 2.95%
foreign trade
Manufacturing 643,643,001.98 634,053,045.67 1.49% 89.86% 100.04% -5.01%
Lease and
Management of 49,680,246.62 12,107,999.95 75.63% 7.23% -4.50% 2.99%
Property
15
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
On Products
Lease and
Management of 49,680,246.62 12,107,999.95 75.63% 7.23% -4.50% 3.00%
Property
Textile 14,570,178.44 13,501,836.05 7.33% 11.80% 12.22% -0.36%
Polarizer sheet 629,072,823.54 620,551,209.62 1.35% 92.98% 103.50% -5.10%
Trade 312,992,303.03 292,353,664.49 6.59% 263.62% 252.48% 2.95%
Area
Domestic 906,630,915.11 840,558,592.67 7.29% 170.34% 201.05% -9.45%
Overseas 99,684,636.52 97,956,117.44 1.73% -26.73% -26.55% -0.23%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Ratio to the total
Amount Notes of the causes Recurring or not
profit amount (%)
Obtaining dividends and The dividends and contract
Investment income -206,057.55 -5.09% contract fees from fees of shareholding
shareholding enterprises enterprises are sustainable
Impairment of Mainly from the loss of
-21,259,451.35 -525.42% Have the sustainability
assets inventory depreciation
Non-operating
4,247,261.65 104.97% Mainly for insurance claims Not sustainable.
income
Mainly for fines imposed to
the subsidiary Huaqiang
Non-operating
6,092.62 0.15% Hotel for failing to register Not sustainable.
expense
passenger information as
required
Mainly for government
Other income 11,035,139.06 272.73% Have the sustainability
subsidies.
IV.Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of same period of last Change in
End of Reporting period Reason for significant change
year percentag
16
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
As a As a e(%)
percentage of percentage of
Amount Amount
total total
assets(%) assets(%)
The decrease in monetary funds is
mainly due to the repayment of loans,
419,227,198.6 1,141,759,374. the purchase of structural deposits and
Monetary fund 9.56% 24.72% -15.16%
0 60 the construction expenditure of
polaroid line 7 during the reporting
period
Accounts 497,053,241.5
11.34% 528,454,015.59 11.44% -0.10%
receivable 7
Due to the increase in the production of
semi-finished products and the
515,163,535.5
Inventories 11.75% 439,752,718.77 9.52% 2.23% purchase of raw materials after the
7
mass production of polaroid line 6
during the reporting period.
In this period, investment real estate is
Real estate 116,195,160.9 used to increase investment in
2.65% 167,997,941.98 3.64% -0.99%
Investment 0 Shenzhen Guanhua Printing and
Dyeing Co., Ltd.
In this period, the investment in
Long-term equity 163,733,127.5
3.73% 32,952,085.66 0.71% 3.02% Shenzhen Guanhua Printing & Dyeing
investment 8
Co., Ltd is increased.
934,236,253.1
Fixed assets 21.31% 987,876,247.55 21.39% -0.08%
2
During the reporting period, the
Construction in investment in the construction of
94,993,015.59 2.17% 15,621,286.64 0.34% 1.83%
process polaroid line 7 increases the total
amount of projects under construction
Mainly due to repayment of loans
Short-term loans 50,837,730.76 1.16% 411,522,111.40 8.91% -7.75%
during the reporting period
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on Cumulative fair Impairment Purchased Sold amount in
Amount at year Amount at year
Item fair value value change provisions in amount in the the reporting
beginning change in the recorded into the reporting reporting period end
17
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
reporting equity period period
period
Financial assets
1. Financial
assets
measured at
fair value
through profit
540,000,000.00 220,000,000.00 760,000,000.00
or loss
(excluding
derivative
financial
assets)
4．Other equity
Instrument 241,875,289.00 1,324,824.96 0.00 432,981.70 242,767,132.26
Investment
Total 751,875,289.00 1,324,824.96 220,000,000.00 432,981.70 982,767,132.26
Financial
0.00 0.00
Liability
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
Not applicable
V. Analysis on investment Status
1. General
□ Applicable √ Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
18
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
I. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
II.Sales of major equity
□ Applicable √ Not applicable
Ⅶ. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Main Registered Operating
Type Total assets Net assets Turnover Net Profit
name business capital profit
Shenzhen Domestic
Lisi Trade, 36,137,041.6 29,575,452.5 1,628,282.
Subsidiary 2,360,000.00 4,229,606.92 1,515,900.43
Industrial Property 6 0 94
Co., Ltd. management
Shenzhen Accommodat
10,005,300.0 31,663,743.0 24,879,458.8 2,628,730.
Huaqiang Subsidiary ion, business 5,817,048.14 1,965,959.06
0 7 6 59
Hotel center;
Shenfang Property 10,922,887.4
Subsidiary 1,600,400.00 3,608,334.07 4,586,273.73 166,816.05 125,112.04
Property management 0
19
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Management
Co., Ltd.
Production of
Shenzhen
fully
Beauty
electronic 40,795,568.2 15,818,003.3 16,592,600.1
Century Subsidiary 13,000,000.0 354,431.70 354,431.70
jacquard 8 9 2
Garment Co., 0
knitting
Ltd.
whole shape
Shenzhen
Shengbo Production
583,333,333. 3,155,732,20 2,658,228,65 893,168,312. -39,315,70
Opotoelectric Subsidiary and sales of -35,069,023.71
00 5.84 0.07 79 0.76
Technology polarizer
Co., Ltd
Shenzhen
Operating
Shenfang
import and 93,687,670.2 17,038,780.5 50,530,860.9 1,122,602.
Import & Subsidiary 5,000,000.00 823,590.07
export 3 7 8 88
export Co.,
business
Ltd.
Shengtou
Sales of 37,702,978.6
（HK）Co., Subsidiary HKD10,000 8,345,323.75 5,852,805.88 347,578.98 347,578.98
polarizer 2
Ltd.
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2019
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Macroeconomic risks
In the second half of 2019, the state will maintain economic stability and focus on regulating and controlling
domestic demand. Firstly, it will expand consumption and stabilize manufacturing investment; Secondly, it will
adhere to the monetary policy of "moderate tightening" and "maintaining reasonable and abundant liquidity";
Thirdly, fiscal policy will implement measures of reducing taxes and fees to ease the burden of enterprises;
20
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Fourthly, it will make clear the direction of investment in infrastructure and maintain overall economic stability.
Under the background of the introduction of science and technology innovation board and the long-term game of
Sino-US trade frictions, the state proposes to implement the strategy of "manufacturing power", encourages core
technology to be autonomous and controllable and to realize import substitution. As an important part of the
electronic information industry, the industry where the Company lies in will be strongly supported by national
policies, but it can not be ruled out that unpredictable macroeconomic fluctuations may cause risks to the
Company's performance.
Response measure: The company will pay close attention to and study the trend of industry policy, strengthen the
tracking and analysis of important information in the industry, and timely grasp the development trend of the
industry. At the same time, the company will continue to optimize product structure, increase market development
capabilities, stimulate personnel vitality, and strengthen internal management, control business risks to ensure
the company’s steady development.
2. Competitive risk in the market
Polarizer industry is an important part of China's future manufacturing industry and the demand for display panels
and the development of relevant technologies are changing with each passing day. The process of domestic
substitution of polarizer industry is in progress. With the gradual mass production of Generation 10.5 Line, the
market for super-large size will encounter with new changes. If the Company's technology and products fail to
respond to the demand of application field, wide polarizer products and applications are not developed as
expected, or the intensification of market competition leads to the price decline of display products and the
pressure of price reduction in the polarizer market, negative impacts will be caused inevitably on the Company.
Response measure: On the one hand, the Company builds the Line 7 project in an all-round way as planned,
actively promotes the introduction of new product clients, enhances the bargaining power of products and
stabilizes customers' confidence; On the other hand, the Company taps market potential, enhances market share,
continuously enhances the yield of production lines and operation ratio, and improves the competitiveness of
products to cope with market risks.
3. Risk of raw material
The core patents of polarizer terminal materials have high technical barriers and are basically monopolized by
foreign manufacturers. Thus, patents are the main reason for limiting the localization of luminescent materials.
Currently, the key raw materials for manufacturing polarizers, PVA film and TAC film, are basically monopolized
by Japanese companies and the production line and production technology of upstream supporting raw materials
are constrained by the Japanese side. Compared with the international manufacturer's complete industrial chain
model from upstream raw materials to polarizers to display panels, the Company does not have the corresponding
complete industrial support to play the role in industrial integration while the price of major membrane materials
is affected by the supplier's production capacity, market demand and the yen exchange rate, which influences the
unit cost of the Company's products.
Response measure: The company will further strengthen its independent intellectual property R&D, promote the
introduction of low-cost raw materials, actively explore the import substitution of raw materials, while increasing
operation ratio and maintaining a low level of production loss rate, maintaining production stability and continuity,
and reducing production costs; If necessary, the company may choose to lock the forward exchange rate to avoid
excessive exchange loss caused by the sharp fluctuation of exchange rate.
21
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Announcement
Annual General Annual General
49.00% June 26,2019 June 27,2019 No.2019-30
Meeting of 2018 Meeting
www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □Not applicable
Time
Period Ful
of
Commitm of fill
Commitment Type Contents making
ent maker commi me
commi
tment nt
tment
As Shenzhen Investment Holdings Co., Ltd., the controlling shareholder
of the company, committed when the restricted-for-sale shares from the
Un
Shenzhen Share shares restructuring were listed for circulation in the market: i. if they
Sustain der
Investme reducti plan to sell the shares through the securities exchange system in the
Commitment on August ed and Ful
nt on future, and the decrease of the shares they hold reaches 5% within 6
share reform 4, 2006 effecti fill
Holdings commit months after the first decrease, they will disclose an announcement
ve me
Co., Ltd. ment indicating the sale through the company within two trading days before
nt
the first decrease; ii. They shall strictly observe the “Guidelines on
Transfer of Restricted-for-sale Original Shares of Listed
22
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Companies” and the provisions of the relevant business principles of
Shenzhen Stock Exchange.
Commitment in
the acquisition
report or the report
on equity changes
Commitment made
upon the assets
replacement
Shenzhen Investment Holdings Co., Ltd. signed a “Letter of
Commitment and Statement on Horizontal Competition Avoidance”
when the company issued non-public stocks in 2009. Pursuant to the
Letter of Commitment and Statement, Shenzhen Investment Holdings
Commi
Co., Ltd. and its wholly owned subsidiary, subsidiaries under control or
tments
any other companies that have actual control of it shall not be involved
on
in the business the same as or similar to those Shenzhen Textile
horizon
currently or will run in the future, or any businesses or activities that Un
Shenzhen tal
may constitute direct or indirect competition with Shenzhen Textile; if Sustain der
Investme compet Octobe
the operations of Shenzhen Investment Holdings Co., Ltd. and its ed and Ful
nt ition, r 9,
wholly owned subsidiaries, subsidiaries under control or other effecti fill
Holdings related 2009
companies that have actual control of it compete with Shenzhen Textile ve me
Co., Ltd. transact
in the same industry or contradict the interest of the issuer in the future, nt
ion and
Shenzhen Investment Holdings Co., Ltd. shall urge such companies to
capital
sell the equity, assets or business to Shenzhen Textile or a third party;
occupat
when the horizontal competition may occur due to the business
Commitments ion
expansion concurrently necessary for Shenzhen Investment Holdings
made upon
Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control
issuance
or other companies that have actual control of it and Shenzhen Textile,
Shenzhen Textile shall have priority.
The commitments during the period non-public issuance in 2012: 1.
Commi
Shenzhen Investment Holdings, as the controlling shareholder of
tments
Shenzhen Textile, currently hasn't the production and business activities
on
of inter-industry competition with Shenzhen Textile or its share-holding
horizon
subsidiary. 2. Shenzhen Investment Holdings and its share-holding Un
Shenzhen tal
subsidiaries or other enterprises owned the actual control rights can't be Sustain der
Investme compet July
directly and indirectly on behalf of any person, company or unit to ed and Ful
nt ition, 14,
engage in the same or similar business in any districts in the future by effecti fill
Holdings related 2012
the form of share-holding, equity participation, joint venture, ve me
Co., Ltd. transact
cooperation, partnership, contract, lease, etc., and ensure not to use the nt
ion and
controlling shareholder's status to damage the legitimate rights and
capital
interests of Shenzhen Textile and other shareholders, or to gain the
occupat
additional benefits. 3. If there will be the situation of inter-industry
ion
competition with Shenzhen Textile for Shenzhen Investment Holdings
23
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
and its share-holding subsidiaries or other enterprises owned the actual
control rights in the future, Shenzhen Investment Holdings will promote
the related enterprises to avoid the inter-industry competition through
the transfer of equity, assets, business and other ways. 4. Above
commitments will be continuously effective and irrevocable during
Shenzhen Investment Holdings as the controlling shareholder of
Shenzhen Textile or indirectly controlling Shenzhen Textile.
1.The company undertakes not to provide loans, loan guarantees, and Un
Shenzhen any other forms of financial assistance to the incentive objects for Novem Decem der
Other
Equity incentive Textile(H obtaining the restricted stocks in the incentive plan; 2. The company ber ber Ful
commit
commitment oldings) undertakes that there is no circumstance that the stock incentive shall be 27,201 27,202 fill
ment
Co., Ltd. prohibited as stipulated in the provisions of Article 7 of the “Measures 7 1 me
for the Management of Stock Incentives of Listed Companies”. nt
Other
commitments
made to minority
shareholders
Executed timely or
Yes
not?
If the
commitments
failed to complete
the execution
when expired,
should specifically Not applicable
explain the reasons
of unfulfillment
and the net stage
of the working
plan
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicable
24
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
No such cases in the reporting period.
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√Applicable□ Not applicable
(I) Formulation of Restricted Stock Incentive Plan
On November 27, 2017, the Proposal on the Company's Implementation Measures of Evaluation for the 2017
Restricted Stock Incentive Plan (Draft) and summary and the Proposal on the Company's Implementation
Measures of Evaluation for the 2017 Restricted Stock Incentive Plan was examined and approved in the 7th board
meeting of the company’s 7th session board of directors, and related proposals agreed to fulfill the relevant
procedures and related proposals agreed to fulfill the relevant procedures
On December 11, 2017, the SASAC agreed in principle to implement the restricted stock incentive plan.
On December 14, 2017, the company held the third extraordinary shareholders' general meeting in 2017, which
reviewed and approved the Proposal on the Company's Implementation Measures of Evaluation for the 2017
Restricted Stock Incentive Plan (Draft) and summary and Proposal on the Company's Implementation Measures of
Evaluation for the 2017 Restricted Stock Incentive Plan and other issues.
(II) Information on granting the restricted stock
On December 14, 2017, the company held the 8th meeting of the 7th Board of Directors, which reviewed and
25
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
approved the “Proposal on Adjusting the List of Incentive Objects and Granting Quantity of the 2017 Restricted
Stock Incentive Plan” and the “Proposal on Granting the Restricted Stocks to Incentive Objects”. The restricted
shares actually granted by this stock incentive plan totaled 4,752,300 shares, and 119 incentive objects were granted,
with the granting price was 5.73 yuan per share.
On December 27, 2017, the company’s restricted stock completed the grant registration formalities at China
Securities Depository and Clearing Corporation Shenzhen Branch.
(III) Implementation of restricted stocks
In view of the fact that the Company's performance appraisal in 2018 fails to meet the conditions for the first
cancellation of the restricted stock incentive plan, and that three motivators leave their jobs for personal reasons,
according to the relevant provisions of the company's Restricted Stock Incentive Plan in 2017, the Company will
repurchase and cancel 116 restricted stocks held by the incentive objects that did not meet the conditions for
lifting the restriction on sale in the first phase, totaling 1,877,720 shares, with a repurchase price of RMB 5.92
yuan/share; Repurchase the restricted shares that have been granted to three former motivators who resigned for
personal reasons but have not yet been lifted on sale restrictions, totaling 58,000 shares at a repurchase price of
RMB 5.73 per share. A total of 1,935,720 restricted shares have been granted but have not been lifted. After the
cancellation of this repurchase, the total equity of the company will be reduced from 511,274,149 shares to
509,338,429 shares. The Company held the 19th meeting of the 7th Board of Directors on June 4, 2019, and held
the 2018 Annual General Meeting of Shareholders on June 26, 2019, and reviewed and approved the Proposal on
Repurchasing Partially Restricted Stocks. The details are shown in the Announcement on Repurchasing Partially
Restricted Stocks Disclosed by the Company on June 5, 2019 and June 27, 2019 on http://www.cninfo.com.cn
(2019-No. 27), the Announcement of Resolutions of the 2018 Annual General Meeting of Shareholders (2019-No.
30) and the Announcement on Reduction of Restricted Shares of Restricted Shares (2019-No. 31). This repurchase
and cancellation will continue to be implemented in accordance with legal procedures.
XII. Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Wheth
Tradin er over
Princi
Amou g limit the
Subjects ple of Market
nt of Ratio Way
Type of the pricing Pric price of Date of Index of
Related Relationsh trade in approv approv of
of related the e of similar disclosur information
parties ip (ten similar payme
trade transaction related trade trade e disclosure
thousa trades ed(ten ed nt
s transac available
nd)
tions thousa limited
nd) or not
(Y/N)
Kunshan Jingjiang Purcha http://www.cni
Marke Agre
Zhiqimei Group's se of Selling nfo.com.cn On
t eme 5,847. Transf April 27,
Materials shareholdi produc polarizing 9.67% 20,880 No 5,847.93 April
Princi nt 93 er 2019
Technology ng ts film 27,2019(Anno
ple price
Co., Ltd. company from uncement
26
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
related No.2019-19)
parties
Purchase http://www.cni
Kunshan Jingjiang Sale of of optical nfo.com.cn On
Marke Agre
Zhiqimei Group's goods film April
t eme 7,910. 12.58 Transf April 27,
Materials shareholdi to products 21,996 No 7,910.83 27,2019(Anno
Princi nt 83 % er 2019
Technology ng related and uncement
ple price
Co., Ltd. company parties relevant No.2019-19)
materials
13,758
Total -- -- -- 42,876 -- -- -- -- --
.76
Details of any sales return of a large amount Not applicable
Give the actual situation in the report period
where a forecast had been made for the total
Normal performance
amounts of routine related-party transactions
by type to occur in the current period(if any)
Reason for any significant difference
between the transaction price and the market Not applicable
reference price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □No
Due from related parties
Does there Newly increased Amount Interest in
Causes
exist Opening amount in the recovered in the Ending
of Intere
Related parties Relationship non-operati balance (ten reporting the reporting reporting balance (ten
formatio st rate
on capital thousand) period(ten period(ten period(ten thousand)
n
occupancy? thousand) thousand) thousand)
27
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Shenzhen
Dailishi Sharing Contract
No 41.64 50 91.64 0
Underwear company fee
Co., Ltd.
Anhui
Investme
Huapeng
Joint venture nt No 180 180
Textile Co.,
dividend
Ltd.
Kunshan
Jingjiang
Zhiqimei
Group's Sale
Materials No 8,406.26 10,750.95 10,431.66 8,725.55
shareholding products
Technology
company
Co., Ltd.
The
Chairman
Shenzhen of the
Tianma Company Sale
No 89.44 85.11 127.18 47.37
Microelectroni was Vice products
cs Co., Ltd. Chairman
of the
company
Influence of the related
rights of credit and liabilities
upon the company’s In the report period, Increase investment income of RMB 500,000..
operation results and
financial position
Due to related parties
Amount newly Amount
Causes Interest in
Opening increased in the repaid in the Ending
of Intere the reporting
Related parties Relationship balance(ten reporting reporting balance (ten
formatio st rate period(ten
thousand) period(ten period(ten thousand)
n thousand)
thousand) thousand)
Kunshan Zhiqimei
Jingjiang Group's
Materials
shareholding Purchase 1,740.57 6,381.71 5,194.18 2,928.1
Technology Co.,
company
Ltd.
Shenzhen Xinfang Current
Sharing company 24.48 24.48
Knitting Co., Ltd. amount
Shenzhen
Current
Changlianfa Sharing company 117.84 117.84
amount
Printing & dyeing
28
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Co., Ltd.
Shenzhen Haohao
Current
Property Leasing Sharing company 445.45 90 355.45
amount
Co., Ltd
Yehui International Current
Sharing company 119.01 0.37 119.48
Co., Ltd. amount
SAPO （HK）Co., Current
Sharing company 31.5 31.5
Ltd. amount
Shenzhen
Shenchao
Controlled by the Interest
Technology 3,720.54 55 3,775.54 0
same party payable
Investment Co.,
Ltd.
Shenzhen Dailishi Investme
Underwear Co., Sharing company nt 0 8.56 8.56
Ltd. dividend
Indluence of the related rights of
credit and liabilities upon the
In the report period, Increase financial interest expense of RMB 550,000.
company’s operation results and
financial position.
5. Guarantee Provided by Related Parties
In February 2018, Jinjiang Group issued a guarantee letter to Shengbo Photoelectric Company, a subsidiary of the
company, and made the following commitments on its proposed trade business carried out by Shengbo
Photoelectric Company. If any problems (including but not limited to capital or other problems) arise in the course
of trade transactions, the full responsibility of Jinjiang Group shall be borne by Jinjiang Group. In January 2019,
Henan Fuxin Investment Co., Ltd. pledged 10% of its stake in Hualian Development Group Co., Ltd. to Shengbo
Photoelectric in accordance with the company's requirements and coordinated by Jinjiang Group, in order to
guarantee the performance of Shengbo Photoelectric's above-mentioned trade business creditor's rights.
As of July 26, 2019, the above-mentioned creditor's rights of related trade business have been fully recovered, and
the 10% equity of Union Developing Group of China pledged by Henan Fuxin Investment Co., Ltd. has been
cancelled and pledged.
6. Other significant related-party transactions
√ Applicable □Not applicable
To ensure the construction progress of polarizer with TFT-LCD, SAPO, Shenzhen Shenchao Technology
Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen Branch, First Tower Sub-branch signed
“Contract on Consigned Loan”, of whose main content is: Shenzhen Shenchao Technology Investment Co., Ltd
applied to the bank for 200 million RMB of construction of dedicated plant and auxiliary projects for polarizer
with TFT-LCD for SAPO, The term of the loan is 108 months from the day when the first installment of entrusted
29
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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. 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. As of June 30,2019, The Company has returned all principal and interest payable on the
above-mentioned entrusted loan with a balance of 0.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
http//www.cninfo.com.cn. Announcement
Announcement of related Transactions December 12,2009
No.2009-55
Announcement of Resolutions of the Second http//www.cninfo.com.cn. Announcement
December 30,2009
provisional shareholders’ general meeting No.2009-57
Announcement of related Transactions http//www.cninfo.com.cn. Announcement
July 1,2010
progress No.2010-26
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
30
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
2.Guarantees
□Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contract
√ Applicable □ Not applicable
The
The
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31
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
commerc
ial
negotiati
ons
between
the two
parties.
XV. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Yes
Main
Emission Emission Implemente Verified
Company or pollutant Total Excessive
Emission Emission port concentratio d pollutant total
subsidiary and specific emission emission
way port number distribution n emission emission(To
name pollutant condition
condition (mg/Nm3) standards ns)
name
The
Shenzhen Exhaust discharge
Shengbo gas: total port is
Optoelectr non-methan Altitude located on
2 <100mg/m3 120mg/m3 840kg/d 1728kg/d No
onic e emission the east side
Technolog hydrocarbo of the roof
y Co., Ltd. ns of Building
No. 1
Shenzhen
Open
Shengbo
channel Southeast
Optoelectro Effluents：
discharge 2 side of plant <80mg/L 90mg/L 56kg/d 96kg/d No
nic COD
after area
Technology
treatment
Co., Ltd.
Prevention and control of pollution facilities construction and operation
The waste gas treatment facility adopted the RTO waste gas regenerative incineration process of Shengbo
Optoelectronic . which can fully meet the emission requirements of discharge gas. The removal rate of organic
waste gas VOCs reached more than 99%,Meanwhile, the equipment adopted the imported thermal storage
material, with the heat storage effect reached 90%, so that the equipment operation had low energy consumption;
after RTO treatment, the exhaust gas produced by the production process can meet the discharge standard.
The wastewater treatment facility adopts fenton + biological method + physicochemical method +MBR
32
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
membrane wastewater treatment process. The wastewater treatment system will be expanded with the project of
line 6 in 2018 and put into use with the production equipment of line 6 in 2018. The equipment has the advantages
of stable operation, low energy consumption, low maintenance cost, high degree of automation, good wastewater
treatment effect and strong impact resistance. The waste water produced in the production process can meet the
environmental protection requirements of standard discharge after being treated by waste water treatment
facilities.
Situation of Construction project environmental impact assessment and other environmental protection
administrative licenses
The Company complied with relevant environmental protection regulations at such three stages as project design,
construction and operation and obtained environmental protection approvals needed at each corresponding stage
including EIA report, EIA approval, environmental protection acceptance decision and emission permit among
others.
Emergency Plan for Emergency Environmental Incidents
According to the actual situation of the company, the preparation of the emergency plan for emergency
environmental incidents was completed, and an emergency environmental emergency plan filing application
Environmental Self-Monitoring Program
Surveillance done subject to surveillance requirements made by the surveillance station and operation needs of all
systems of SAPO，the specific monitoring programs are as follows: organic exhaust gas is 8 times per year (2 per
quarter), wastewater discharge is 4 times per year (once per quarter), boiler exhaust gas is 2 times per year (once
every six months), and canteen fume is 2 times per year (once every six months), the noise at the plant boundary
is 2 times per year (once every six months).
Other Environmental Information That Should Be Disclosed
Nil
Other Environmental Related Information
Nil
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.
XVI.Other material events
√ Applicable □Not applicable
（I）Progress of Guanhua Building
On February 28, 2019, the Company and Qiaohui Textile Industrial Co., Ltd. respectively accounted for
50.16% and 49.84% of the equity interest in the buildings of Guanhua Building, and increased capital to Shenzhen
Guanhua Printing & Dyeing Co., Ltd. based on the corresponding evaluation value of RMB 49.9351 million and
RMB 41.9666 million of the buildings of Guanhua Building in order to improve the contribution obligation of
shareholders of Shenzhen Guanhua Printing & Dyeing Co., Ltd. The Company signed the Shenzhen Guanhua
Printing & Dyeing Co., Ltd. Capital Increase Agreement with Qiaohui Textile Industrial Co., Ltd. and Shenzhen
Guanhua Printing and Dyeing Co., Ltd. After the completion of capital increase, Shenzhen Guanhua Printing &
Dyeing Co., Ltd. is a enterprise jointly controlled by the Company and Qiaohui Textile Industrial Co., Ltd.
33
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2019--07).
During the reporting period, Shenzhen Guanhua Printing & Dyeing Co., Ltd. has obtained the Real Property
Registration Certificate of Guanhua Building, and has completed the registration procedures for the change of
shareholding rights and the increase of registered capital; As the winning bidder determined by the first public
lease of Guanhua Building gave up the lease qualification, Guanhua Building re-issued the public listing
announcement on the Shenzhen United Property and Share Rights Exchange and determined the lessee in May
2019. Currently, Guanhua Building has completed the overall external lease, and has received a total of RMB
10.2032 million in rental deposit and first quarter rent from the lessee.
(II) Progress on the investment and construction of the ultra-large-size TV polarizer industrialization project (Line
7)
During the reporting period, the Line 7 project has completed the signing of contracts for extension
machines, AGV, pressure sensitive adhesive coating machine, wastewater treatment equipment, earthworks and
partial construction projects, some of which have completed payment in stages. The construction of Line 7 has
commenced on April 18, 2019, and is currently in the stage of building foundation construction. As of June 30,
2019, the Line 7 project has actually paid RMB 42,292,250 (RMB 22,252,200 in raised funds, RMB 20,040,500
in private funds and government funds).
XVII. Material events of subsidiaries
√ Applicable □Not applicable
(I) Progress of the commitment for the compensation in 2018 Annual Performance of the subsidiary, SAPO
In order to give full play to the advantages of the system and mechanism of mixed ownership, seize favorable
market opportunities and achieve the goal of strengthening and enlarging the main optical film industries such as
polarizer, the Company introduced a strategic investor, Jinjiang Group to sign the Cooperation Agreement at the
level of SAPO at the end of 2016 and Jinjiang Group has made a three-year performance commitment to SAPO
for the sake of achieving better results in the cooperation after the introduction of strategic investors (in
2017-2019). However, the cooperation effect is unsatisfactory. In 2018, SAPO realized a net profit of RMB
97,268,700, with a net profit margin of RMB 19,268,700 from the performance commitment, ie. RMB 100 million.
Jinjiang Group needs to make up for the net profit margin by cash according to the Cooperation Agreement.
In view of Jinjiang Group's proposal to properly handle the issue of performance compensation through
consultation based on the actual situation and fair and reasonable principle, Jinjiang Group temporarily fails to
fulfill its performance commitment for compensation obligations under the Cooperation Agreement before the two
sides reach an agreement. On April 27, 2019, the Company initiated negotiations with Jinjiang Group on
compensation for employment performance commitments after the disclosure of the Annual Report of 2018 and
agreed to negotiate a compensation plan for the performance commitment compensation and implement the
corresponding decision-making procedures within three months from the date of disclosure of the Announcement
on the Reply of the Shenzhen Stock Exchange's 2018 Annual Report Letter of Inquiry ( 2019-No. 23) by the
company on May 29. If the two parties fail to reach an agreement within the agreed time, the Company will settle
the performance commitment compensation by arbitration according to the regulation of the Cooperation
Agreement.
As of the disclosure date of this report, although both parties have made active efforts to resolve the issue of
performance commitment compensation, no consensus has been reached on the compensation plan. The company
has formally sent a letter to urge Jinjiang Group to fulfill its 2018 annual performance commitment compensation
obligation in accordance with the Cooperation Agreement, make up the difference of 197,268,700 RMB in cash
34
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
and reach a compensation plan before the expiration of the negotiation period.
(II) Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary Shengbo Optoelectronic Co., Ltd signed the
Changxing Junying Equity Investment Partnership (Limited Partnership) Agreement with the fund manager
Huizhi Investment Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners,
and co-sponsored the establishment of an industrial fund, focusing on the optical film industry chain related
projects related to the company's main business, with a fund size of 50 million yuan. SAPO as one of the limited
partners of the industrial fund, subscribed for a capital contribution of 28.5 million yuan.
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial and
commercial registration and completed the private equity investment fund registration on February 8, 2018. For
details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).
As of June 30, 2019, Changxing Junying had accumulated 3 investment projects with a total investment of RMB
42 million.
Fund contribution
No Name Investment
（Ten thousand）
1 Shenzhen Kaichuang Shijia Technology Co., Ltd. Optical Film 1,400
2 Shenzhen shenfuyu Electronic Technology Co., Ltd. Optical Film 1,300
3 Shenzhen Hengbaoshun Technology Development Co., Ltd. Optical Film 1,500
35
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional
4,829,550 0.94% 4,829,550 0.94%
subscription
3.Other domestic shares 4,829,550 0.94% 4,829,550 0.94%
Domestic Nature shares 4,829,550 0.94% 4,829,550 0.94%
II.Shares with 506,444,5 506,444,5
99.06% 99.06%
unconditional subscription 99 99
457,016,5 457,016,5
1.Common shares in RMB 89.39% 89.39%
99 99
2.Foreign shares in 49,428,00 49,428,00
9.67% 9.67%
domestic market 0 0
511,274,1 511,274,1
III. Total of capital shares 100.00% 100.00%
49 49
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
√ Applicable □Not applicable
On June 4, 2019, the 19th meeting of the 7th Board of Directors of the company deliberated and passed the
Proposal on Repurchase and Cancellation of Some Restricted Stock; On June 26, 2019, the company's 2018
annual general meeting deliberated and passed the Proposal on Repurchase and Cancellation of Some Restricted
36
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Stock. On June 27, 2019, the company issued the Announcement on Reduction of Capital on Repurchase and
Cancellation of Some Restricted Stock (No.2019-31). The company will repurchase and cancel 116 restricted
stocks held by the incentive objects that did not meet the conditions for lifting the restriction on sale in the first
phase, totaling 1,877,720 shares, with a repurchase price of 5.92 yuan/share; Repurchase the restricted shares that
have been granted to 3 former incentive objects who resigned for personal reasons but have not yet been lifted on
sale restrictions, totaling 58,000 shares at a repurchase price of 5.73 yuan per share. A total of 1,935,720 restricted
shares have been granted but have not been lifted. After the cancellation of this repurchase, the total equity of the
company will be reduced from 511,274,149 shares to 509,338,429 shares.
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
Ⅱ.Issuing and listing
□ Applicable √Not applicable
III. Shareholders and shareholding
In Shares
Total number of
Total number of preferred
common
shareholders that had restored the
shareholders at 32,757 0
voting right at the end of the
the end of the
reporting period (if any) (note 8)
reporting period
Particulars about shares held above 5% by shareholders or top ten shareholders
Proport Number of share
Nature
ion of Number of shares Changes in Amount of pledged/frozen
Shareholders of Amount of restricted
shares held at period reporting un-restricted shares State
shareh shares held
held -end period held of Amount
older
（%） share
Shenzhen State-o
45.78% 234,069,436 0 0 234,069,436
Investment wned
37
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Holdings legal
Co., Ltd. person
State-o
Shenzhen
w
Shenchao
ne
Technology 3.15% 16,129,032 0 0 16,129,032
d
Investment
Legal
Co., Ltd.
person
Domes
Sun tic
0.63% 3,224,767 32,000 0 3,224,767
Huiming Nature
person
Domes
Zheng tic
0.59% 3,000,000 1,170,000 0 3,000,000
Junsheng Nature
person
Domes
Li tic
0.56% 2,873,078 0 2,873,078
Songqiang Nature
person
Domes
Chen tic
0.39% 2,013,001 2,013,001 0 2,013,001
Danzhen Nature
person
Domes
Kuang tic
0.28% 1,453,600 -3,400 0 1,453,600
Guowei Nature
person
Domes
tic
Hong Fan 0.27% 1,384,900 356,000 0 1,384,900
Nature
person
Domes
tic
Li Zengmao 0.22% 1,136,700 97,900 0 1,136,700
Nature
person
Domes
tic
Zhu Ye 0.22% 1,134,145 2,200 0 1,134,145
Nature
person
Related or Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment
38
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
acting-in-concert Holding Co., Ltd. and a person taking concerted action. Except this, the Company did not whether there is
parties among relationship between the top ten shareholders holding non-restricted negotiable shares and between the top ten
shareholders above shareholders holding non-restricted negotiable shares and the top 10 shareholders or whether they are persons
taking concerted action defined in Regulations on Disclosure of Information about Shareholding of
Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Name of the Share type
Quantity of unrestricted shares held at the end of the reporting period
shareholder Share type Quantity
Common
Shenzhen Investment
234,069,436 shares in 234,069,436
Holdings Co., Ltd.
RMB
Shenzhen Shenchao Common
Technology 16,129,032 shares in 16,129,032
Investment Co., Ltd. RMB
Foreign
shares in
Sun Huiming 3,224,767 3,224,767
domestic
market
Common
Zheng Junsheng 3,000,000 shares in 3,000,000
RMB
Common
Li Songqiang 2,873,078 shares in 2,873,078
RMB
Common
Chen Danzhen 2,013,001 shares in 2,013,001
RMB
Common
Kuang Guowei 1,453,600 shares in 1,453,600
RMB
Common
Hong Fan 1,384,900 shares in 1,384,900
RMB
Common
Li Zengmao 1,136,700 shares in 1,136,700
RMB
Common
Zhu Ye 1,134,145 shares in 1,134,145
RMB
Explanation on Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment
39
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
associated Holdings Co., Ltd. and a person taking concerted action. Except this, the Company did not whether there is
relationship or relationship between the top ten shareholders holding non-restricted negotiable shares and between the top ten
consistent action shareholders holding non-restricted negotiable shares and the top 10 shareholders or whether they are persons
among the top 10 taking concerted action defined in Regulations on Disclosure of Information about Shareholding of
shareholders of Shareholders of Listed Companies.
non-restricted
negotiable shares
and that between the
top 10 shareholders
of non-restricted
negotiable shares
and top 10
shareholders
Explanation on
shareholders The Company Shareholder Li Songqiang holds 2,872,653 shares of the Company through stock account with
participating in the credit transaction ; The Company Shareholder Hong Fan holds 56,000 shares of the Company through stock
margin trading account with credit transaction. The Company Shareholder Zhu Ye holds 1,031,945 shares of the Company
business(if any )(See through stock account with credit transaction.
Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
40
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
41
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2018 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Zou Zhiwei Supervisor Dimission March 15,2019 Job Change
Li Lei Supervisor Elected June 26,2019 Add
42
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
43
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
X. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 419,227,198.60 1,141,759,374.60
Settlement provision
Outgoing call loan
Transactional financial assets 760,000,000.00
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 31,079,249.92 886,432.06
Account receivable 497,053,241.57 528,454,015.59
Financing of receivables
Prepayments 134,533,314.88 229,028,791.15
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 14,566,106.22 14,846,896.50
Including：Interest receivable 7,067,282.69 5,589,704.44
44
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Dividend receivable
Repurchasing of financial assets
Inventories 515,163,535.57 439,752,718.77
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 89,787,160.89 639,797,959.30
Total of current assets 2,461,409,807.65 2,994,526,187.97
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial assets 45,373,784.87
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 163,733,127.58 32,952,085.66
Other equity instruments investment 242,767,132.26
Other non-current financial assets
Property investment 116,195,160.90 167,997,941.98
Fixed assets 934,236,253.12 987,876,247.55
Construction in progress 94,993,015.59 15,621,286.64
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 37,191,323.92 37,880,815.85
Development expenses
Goodwill
Long-germ expenses to be amortized 2,575,143.27 1,486,209.03
Deferred income tax asset 5,687,946.62 6,036,198.23
Other non-current asset 325,607,867.83 329,452,659.01
Total of non-current assets 1,922,986,971.09 1,624,677,228.82
Total of assets 4,384,396,778.74 4,619,203,416.79
Current liabilities
45
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Short-term loans 50,837,730.76 411,522,111.40
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 247,726,900.23 180,239,452.90
Advance receipts 25,426,190.80 120,702,951.37
Selling of repurchased financial assets
Deposit taking and interbank
deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 24,381,210.07 32,506,267.08
Tax payable 16,505,455.32 7,745,128.99
Other account payable 171,137,964.42 229,015,279.98
Including：Interest payable 435,029.66 39,044,044.39
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1
40,000,000.00
year
Other current liability
Total of current liability 536,015,451.60 1,021,731,191.72
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan
Bond payable
Including：preferred stock
46
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 129,416,766.89 137,991,698.33
Deferred income tax liability 66,021,500.49
Other non-current liabilities
Total non-current liabilities 195,438,267.38 137,991,698.33
Total of liability 731,453,718.98 1,159,722,890.05
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,865,716,983.63 1,865,716,983.63
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 200,771,588.45 1,339,208.41
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Common risk provision
Retained profit -49,942,185.43 -57,774,473.41
Total of owner’s equity belong to the
2,580,594,659.88 2,373,329,991.86
parent company
Minority shareholders’ equity 1,072,348,399.88 1,086,150,534.88
Total of owners’ equity 3,652,943,059.76 3,459,480,526.74
Total of liabilities and owners’ equity 4,384,396,778.74 4,619,203,416.79
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：Zhu Meizhu
Person-in -charge of the accounting organ：Mu Linying
47
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
2. Balance sheet of Parent Company
I n RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 29,536,528.73 85,416,567.74
Transactional financial assets 560,000,000.00
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable
Account receivable 564,306.46 541,948.21
Financing of receivables
Prepayments 79,766.67 17,436.00
Other account receivable 15,141,009.58 13,856,382.02
Including：Interest receivable 6,737,221.93 4,974,799.47
Dividend receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1
year
Other current asset 500,000,000.00
Total of current assets 605,321,611.44 599,832,333.97
Non-current assets：
Debt investment
Available for sale of financial assets 15,373,784.87
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 2,115,956,894.19 1,997,175,852.27
Other equity instruments investment 200,802,141.09
Other non-current financial assets
Property investment 109,525,380.61 161,053,628.71
Fixed assets 25,697,052.23 26,565,399.91
48
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 828,074.07 1,012,374.75
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 5,337,909.60 5,818,069.48
Other non-current asset
Total of non-current assets 2,458,147,451.79 2,206,999,109.99
Total of assets 3,063,469,063.23 2,806,831,443.96
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 639,024.58 639,024.58
Contract Liabilities
Employees’ wage payable 6,742,670.44 9,760,306.51
Tax payable 13,229,303.02 5,494,627.33
Other account payable 115,538,060.57 141,746,352.67
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1
year
Other current liability
Total of current liability 136,560,802.18 158,052,054.66
Non-current liabilities：
Long-term loan
49
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 650,000.00 700,000.00
Deferred income tax liability 63,030,252.70
Other non-current liabilities
Total non-current liabilities 63,680,252.70 700,000.00
Total of liability 200,241,054.88 158,752,054.66
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,599,025,454.96 1,599,025,454.96
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 191,797,845.07 1,339,208.41
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Retained profit 508,356,435.09 483,666,452.70
Total of owners’ equity 2,863,228,008.35 2,648,079,389.30
Total of liabilities and owners’ equity 3,063,469,063.23 2,806,831,443.96
3.Consolidated Income Statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 1,008,863,295.50 474,262,408.57
Incl：Business income 1,008,863,295.50 474,262,408.57
Interest income
Insurance fee earned
50
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Fee and commission received
II. Total business cost 1,013,198,391.97 481,289,557.87
Incl：Business cost 940,587,510.73 415,092,958.33
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 3,897,496.78 3,840,556.12
Sales expense 7,369,804.52 3,780,411.53
Administrative expense 42,901,879.68 41,239,119.73
R & D expense 19,172,388.20 21,189,099.82
Financial expenses -730,687.94 -3,852,587.66
Including：Interest expense 3,783,883.97 3,428,083.94
Interest income -15,744,104.66 -13,277,267.58
Add：Other income 11,035,139.06 5,812,167.76
Investment gain（“-”for loss） -206,057.55 28,552,710.15
Including: investment gains from
-1,114,057.55 616,945.67
affiliates
Financial assets measured at amortized
cost cease to be recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss 2,333,764.98
Impairment loss of assets -21,259,451.35 -17,394,332.04
Assets disposal income 12,236,686.25
III. Operational profit（“-”for loss） -195,015.08 9,943,396.57
Add ：Non-operational income 4,247,261.65 89,905.17
Less: Non-operating expense 6,092.62 153,338.08
IV. Total profit(“-”for loss) 4,046,153.95 9,879,963.66
Less：Income tax expenses 9,773,007.83 5,321,864.53
V. Net profit -5,726,853.88 4,558,099.13
51
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(I) Classification by business
continuity
1.Net continuing operating profit -5,726,853.88 4,558,099.13
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of
7,832,287.98 9,646,976.15
parent company
2.Minority shareholders’ equity -13,559,141.86 -5,088,877.02
VI. Net after-tax of other comprehensive
52,056,251.94 -389,767.67
income
Net of profit of other comprehensive inco
52,056,251.94 -389,767.67
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
51,249,010.40
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.
3. Changes in the fair value of
51,249,010.40
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will be 807,241.54 -389,767.67
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
-510,116.82
3.Gains and losses from changes in fair v
52
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
alue available for sale financial assets
4. Other comprehensive income arising
from the reclassification of financial
assets
5.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency financ 807,241.54 120,349.15
ial statements
9.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 46,329,398.06 4,168,331.46
Total comprehensive income attributable
59,888,539.92 9,257,208.48
to the owner of the parent company
Total comprehensive income
-13,559,141.86 -5,088,877.02
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.0153 0.0190
(II)Diluted earnings per share 0.0153 0.0190
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：Zhu Meizhu
Person-in -charge of the accounting organ：Mu Linying
4. Income statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 34,593,508.28 33,343,899.42
Incl：Business cost 5,929,735.08 6,934,259.58
53
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Business tax and surcharge 1,412,933.65 1,458,413.46
Sales expense
Administrative expense 16,206,040.37 14,436,569.89
R & D expense
Financial expenses -10,132,086.89 -7,833,271.26
Including：Interest expenses
Interest income -9,924,921.96 -7,845,669.84
Add：Other income 50,000.00 50,000.00
Investment gain（“-”for loss） -206,057.55 1,191,719.82
Including: investment gains from
-1,114,057.55 616,945.67
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss 23,970.35
Impairment loss of assets -365,826.86
Assets disposal income 12,301,144.92
II. Operational profit（“-”for loss） 33,345,943.79 19,223,820.71
Add ：Non-operational income 79,604.02
Less：Non -operational expenses
III. Total profit(“-”for loss) 33,345,943.79 19,303,424.73
Less：Income tax expenses 8,655,961.40 4,209,259.73
IV. Net profit 24,689,982.39 15,094,165.00
1.Net continuing operating profit 24,689,982.39 15,094,165.00
2.Termination of operating net profit
V. Net after-tax of other comprehensive
52,056,251.94 -389,767.67
income
（I）Other comprehensive income items
that will not be reclassified into
51,249,010.40
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
54
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
e equity method investee can not be recl
assified into profit or loss.
3. Changes in the fair value of
51,249,010.40
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will b 807,241.54 -389,767.67
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.
Gains and losses from changes in fair v -510,116.82
alue available for sale financial assets
4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
6. Allowance for credit impairments
in investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency fina 807,241.54 120,349.15
ncial statements
9.Other
VI. Total comprehensive income 76,746,234.33 14,704,397.33
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
55
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
999,946,160.35 510,486,141.19
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
Cash received from interest,
commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned 9,977,371.04 24,120,883.81
Other cash received from business
29,115,913.92 26,160,799.70
operation
Sub-total of cash inflow 1,039,039,445.31 560,767,824.70
Cash paid for purchasing of
884,541,697.70 560,096,998.00
merchandise and services
Net increase of client trade and advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Net increase in financial assets held
for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
56
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Cash paid to staffs or paid for staffs 82,695,671.17 76,371,093.88
Taxes paid 15,981,651.90 27,570,325.99
Other cash paid for business activities 31,994,062.19 25,580,296.27
Sub-total of cash outflow from business
1,015,213,082.96 689,618,714.14
activities
Net cash generated from /used in
23,826,362.35 -128,850,889.44
operating activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 2,513,730.75 1,673,214.15
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 6,200.00 26,597.81
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 620,264,450.94 1,903,828,974.66
Sub-total of cash inflow due to
622,784,381.69 1,905,528,786.62
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 88,061,134.28 156,659,802.66
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
0.00
other operational units
Other cash paid for investment
985,495,790.87 1,830,500,000.00
activities
Sub-total of cash outflow due to
1,073,556,925.15 1,987,159,802.66
investment activities
Net cash flow generated by investment -450,772,543.46 -81,631,016.04
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment
from minor shareholders
Cash received as loans 81,566,681.47 275,474,786.49
Cash received from bond placing
57
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Other financing –related cash received
Sub-total of cash inflow from financing
81,566,681.47 275,474,786.49
activities
Cash to repay debts 479,551,062.11 209,562,972.59
Cash paid as dividend, profit, or
42,197,297.00 1,439,654.15
interests
Including: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 11,448,442.40
Sub-total of cash outflow due to
533,196,801.51 211,002,626.74
financing activities
Net cash flow generated by financing -451,630,120.04 64,472,159.75
IV. Influence of exchange rate
548,334.28 -494,599.74
alternation on cash and cash equivalents
V.Net increase of cash and cash
-878,027,966.87 -146,504,345.47
equivalents
Add: balance of cash and cash
1,133,574,235.22 1,161,240,139.33
equivalents at the beginning of term
VI ..Balance of cash and cash
255,546,268.35 1,014,735,793.86
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
35,598,741.25 34,341,479.70
rending of services
Tax returned
Other cash received from business
4,798,306.72 6,186,752.60
operation
Sub-total of cash inflow 40,397,047.97 40,528,232.30
Cash paid for purchasing of
1,795,145.94 2,734,504.18
merchandise and services
Cash paid to staffs or paid for staffs 11,643,989.59 10,002,845.66
Taxes paid 10,101,259.32 7,067,139.21
Other cash paid for business activities 24,376,996.84 12,230,536.71
Sub-total of cash outflow from business 47,917,391.69 32,035,025.76
58
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
activities
Net cash generated from /used in
-7,520,343.72 8,493,206.54
operating activities
II. Cash flow generated by investing
Cash received from investment
12,000,000.00
retrieving
Cash received as investment gains 2,513,730.75 1,673,214.15
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 24,597.81
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 8,629,426.36 763,589.50
Sub-total of cash inflow due to
23,143,157.11 2,461,401.46
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 54,410.00 1,545,005.70
long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
60,000,000.00 40,000,000.00
activities
Sub-total of cash outflow due to
60,054,410.00 41,545,005.70
investment activities
Net cash flow generated by investment -36,911,252.89 -39,083,604.24
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
interests
Other cash paid for financing activities 11,448,442.40
59
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Sub-total of cash outflow due to
11,448,442.40
financing activities
Net cash flow generated by financing -11,448,442.40
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-55,880,039.01 -30,590,397.70
equivalents
Add: balance of cash and cash
85,416,567.74 413,700,327.95
equivalents at the beginning of term
VI ..Balance of cash and cash
29,536,528.73 383,109,930.25
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity
Other Total
instrument Minor
Less: Compr Surplu Comm of
Items share Capital Specia Retain shareh
Shares ehensi s on risk Subtot owners
Capit prefe Susta reserve lized ed Other olders’
in ve reserve provisi al ’
a rred inabl Other s reserve profit equity
stock Incom s on equity
stock e
e
debt
511,2 1,865, 27,230 80,004 -57,77 2,373, 1,086, 3,459,
I.Balance at the 1,339,
74,14 716,98 ,679.0 ,803.2 4,473. 329,99 150,53 480,52
end of last year 208.41
9.00 3.63 0 3 41 1.86 4.88 6.74
Add: Change of 147,37 147,37 147,37
accounting 6,128. 6,128. 6,128.
policy 10 10 10
Correcting of
previous errors
Merger of
entities under
common control
Other
II.Balance at the 511,2 1,865, 27,230 148,71 80,004 -57,77 2,520, 1,086, 3,606,
beginning of 74,14 716,98 ,679.0 5,336. ,803.2 4,473. 706,11 150,53 856,65
current year 9.00 3.63 0 51 3 41 9.96 4.88 4.84
60
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
52,056 59,888 -13,80 46,086
III.Changed in 7,832,
,251.9 ,539.9 2,135. ,404.9
the current year 287.98
4 2 00 2
（1）Total 52,056 59,888 -13,80 46,086
7,832,
comprehensive ,251.9 ,539.9 2,135. ,404.9
287.98
income 4 2 00 2
（II）Investment
or decreasing of
capital by
owners
1 ． Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments 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)
61
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 511,2 1,865, 27,230 200,77 80,004 -49,94 2,580, 1,072, 3,652,
the end of this 74,14 716,98 ,679.0 1,588. ,803.2 2,185. 594,65 348,39 943,05
term 9.00 3.63 0 45 3 43 9.88 9.88 9.76
Amount in last year
In RMB
Semi-annual of 2018
Owner’s equity Attributable to the Parent Company
Other Equity Minor
Less: Other Surplu Comm Total of
Items instrument shareho
share Capital Specia Retain
Shares Compr s on risk Subtot owners’
Capit reserve lized ed Other lders’
prefe in ehensi reserve provisi al equity
a Susta Other s reserve profit equity
rred stock ve s on
inabl
62
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
stock e Incom
debt e
511,2 1,866, 27,230 77,477 -32,26 2,397, 1,125,5 3,523,0
I.Balance at the 2,218,
74,14 001,47 ,679.0 ,042.1 6,087. 474,60 44,525. 19,129.
end of last year 703.87
9.00 5.17 0 9 44 3.79 79 58
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
II.Balance at 511,2 1,866, 27,230 77,477 -32,26 2,397, 1,125,5 3,523,0
2,218,
the beginning 74,14 001,47 ,679.0 ,042.1 6,087. 474,60 44,525. 19,129.
703.87
of current year 9.00 5.17 0 9 44 3.79 79 58
12,708
III.Changed in 3,451, -389,7 9,646, -4,263, 8,445,4
,402.4
the current year 194.00 67.67 976.15 001.02 01.46
8
（1）Total
-389,7 9,646, 9,257, -4,263, 4,994,2
comprehensive
67.67 976.15 208.48 001.02 07.46
income
（II）
Investment or
3,451, 3,451, 3,451,1
decreasing of
194.00 194.00 94.00
capital by
owners
1．Ordinary Sh
ares invested b
y shareholders
2 ． Holders of
other equity ins
truments invest
ed capital
3．Amount of
shares paid and 3,451, 3,451, 3,451,1
accounted as 194.00 194.00 94.00
owners’ equity
63
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
64
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 511,2 1,869, 27,230 77,477 -22,61 2,410, 1,121,2 3,531,4
1,828,
the end of this 74,14 452,66 ,679.0 ,042.1 9,111.2 183,00 81,524. 64,531.
936.20
term 9.00 9.17 0 9 9 6.27 77 04
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Semi-annual of 2019
Other Equity instrument
Other
Less: Specializ Total of
Items Share preferr Capital Compreh Surplus Retaine
Sustain Shares in ed Other owners’
capital ed Other reserves ensive reserves d profit
able stock reserve equity
stock Income
debt
511,27 483,66
I.Balance at the 1,599,02 27,230,6 1,339,20 80,004,8 2,648,079,
4,149.0 6,452.7
end of last year 5,454.96 79.00 8.41 03.23 389.30
0 0
Add: Change of
138,402, 138,402,3
accounting
384.72 84.72
policy
Correcting of
previous errors
Other
II.Balance at the 511,27 483,66
1,599,02 27,230,6 139,741, 80,004,8 2,786,481,
beginning of 4,149.0 6,452.7
5,454.96 79.00 593.13 03.23 774.02
current year 0 0
III.Changed in 52,056,2 24,689, 76,746,23
the current year 51.94 982.39 4.33
（I）Total
52,056,2 24,689, 76,746,23
comprehensive
51.94 982.39 4.33
income
65
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(II) Investment
or decreasing of
capital by
owners
1．Ordinary Sha
res invested by s
hareholders
2．Holders of ot
her equity instru
ments invested c
apital
3.Amount of
shares paid and
accounted as
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.Change
amount of
66
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at 511,27 508,35
1,599,02 27,230,6 191,797, 80,004,8 2,863,228,
the end of this 4,149.0 6,435.0
5,454.96 79.00 845.07 03.23 008.35
term 0 9
Amount in last year
In RMB
Semi-annual of 2018
Other Equity
instrument Other
Less: Specializ Total of
Items Share Capital Compre Surplus Retained
preferr Shares ed Other owners’
Capital Sustai reserves hensive reserves profit
ed Other in stock reserve equity
nable Income
stock
debt
511,27 1,599,3
I.Balance at the 27,230,6 2,218,7 77,477, 460,916,6 2,624,037,6
4,149. 81,854.
end of last year 79.00 03.87 042.19 03.36 74.38
00 96
Add: Change of
accounting
policy
Correcting of
previous errors
Other
67
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
II.Balance at 511,27 1,599,3
27,230,6 2,218,7 77,477, 460,916,6 2,624,037,6
the beginning 4,149. 81,854.
79.00 03.87 042.19 03.36 74.38
of current year 00 96
III.Changed in 4,277,0 -389,76 15,094,16 18,981,467.
the current year 70.00 7.67 5.00 33
（I）Total
-389,76 15,094,16 14,704,397.
comprehensive
7.67 5.00 33
income
(II) Investment
or decreasing of 4,277,0 4,277,070.0
capital by 70.00 0
owners
1．Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments invested
capital
3.Amount of
shares paid and 4,277,0 4,277,070.0
accounted as 70.00 0
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
68
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 511,27 1,603,6
27,230,6 1,828,9 77,477, 476,010,7 2,643,019,1
the end of this 4,149. 58,924.
79.00 36.20 042.19 68.36 41.71
term 00 96
III. Basic Information of the Company
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.
69
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 of the 20th meeting of the Seventh Board of Directors
of the Group on August 19,2019.
As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated financial stat
ements: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.
The scope of consolidated financial statements this period did not change.
IV. Basis for the preparation of financial statements
(1) Basis for the preparation
This company’s financial statements is based on going-concern assumption and worked out according to actual
transactions and matters, Accounting Standard for Business Enterprises--Basic Standard(issued by No.33 Decree
of the Ministry of Finance and revised by No.76 Decree of the Ministry of Finance) issued by the Ministry of
Finance, 42 special accounting standards enacted and revised on and after Feb 15, 2006, guideline for application
of accounting standard for business enterprises, ASBE interpretations and other relevant regulations(hereinafter
collectively referred to as “Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports
(revised in 2014) issued by China Securities Regulatory Commission.
(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:
According to the actual production and operation characteristics, the company has formulated specific accounting
policies and accounting estimates for such transactions or events as provision for bad debts of receivables,
depreciation of fixed assets, amortization of intangible assets, and revenue recognition.
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.
70
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of assets for
processing 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.
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
71
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 transitions 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 value of the acquiree'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 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
72
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 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
73
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 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 parties have 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, and obligations for the liabilities, relating to the arrangement. A joint venture is
a joint arrangement whereby the Company has rights to the net assets of the arrangement.
(2) Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business int
erests related to:
A. Confirm individual assets and common assets held based on shareholdings;
B. Confirm individual liabilities and shared liabilities held based on shareholdings;
C. Confirm the income from the sales revenue of co-operate business output
D. Confirm the income from the sales of the co-operate business output based on shareholdings;
E. 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 equity investmen
ts.
74
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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
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 instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or equity
instruments of other parties.
1. Confirmation and termination of financial instruments
When the company becomes a party to the financial instrument contract, the relevant financial assets or financial
liabilities are confirmed.
Confirmation of financial instruments is terminated when financial assets satisfy one of the following conditions:
(1) The contractual right to receive cash flow from the financial asset is terminated;
(2) The financial asset has been transferred and the following conditions for derecognition of financial asset
transfer are met.
When all or part of the current obligations of financial liabilities has been removed, confirmation of the
financial instruments or part of it should be terminated. When the Company (the debtor) and the creditors sign
agreements to take on new ways to replace the existing financial liabilities with new financial liabilities and the
contract terms of existing financial liabilities and new financial liabilities are different in essence, derecognize the
current financial liabilities and recognize the new financial liabilities. If the Company substantially amends the
75
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
contract terms of the original financial liabilities (or part thereof), it shall terminate the confirmation of the
original financial liabilities and at the same time confirm a new financial liabilities in accordance with the revised
terms.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified into financial assets
measured by amortized cost, financial assets measured by fair value and whose changes are included in other
comprehensive income, and financial assets measured by fair value and whose changes are included in current
profits and losses according to the company's business mode of managing financial assets and the contractual cash
flow characteristics of financial assets.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at
fair value, whose changes are included in current profits and losses, relevant transaction costs are directly included
in current profits and losses; For other types of financial assets, relevant transaction costs are included in the
initial recognition amount.
(1) Financial assets measured in amortized cost
Financial assets of the Company that meet the following conditions at the same time are classified as
financial assets measured in amortized cost: 1) The business mode for managing the financial assets is aimed at
collecting the contract cash flow; 2) The contractual terms of the financial asset stipulate that the cash flow
generated on a specific date is only the payment of principal and interest based on the amount of outstanding
principal. For such financial assets, the interest income recognized according to the effective interest rate method
is subsequently measured according to the amortized cost, and the gains or losses arising from amortization or
impairment are included in the current profits and losses.
(2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets of the Company that meet the following conditions at the same time are classified as
financial assets measured at fair value and whose changes are included in other comprehensive income: 1) The
business mode for managing the financial assets is aimed at both collecting the contractual cash flow and selling
the financial assets; 2) The contractual terms of the financial asset stipulate that the cash flow generated on a
specific date is only the payment of principal and interest based on the amount of outstanding principal.
At the time of initial recognition, the company may designate non-trading equity instrument investments as
financial assets measured at fair value and whose changes are included in other comprehensive income, list them
as other equity instrument investments, and recognize dividend income when the conditions are met (once the
designation is made, it shall not be revoked). Dividend income related to such financial assets is included in
current profits and losses, and changes in fair value are included in other comprehensive income. When the
financial asset ceases to be recognized, the accumulated gains or losses previously included in other
comprehensive gains shall be transferred into retained income from other comprehensive income, and not be
included in current profit and loss.
(3) Financial assets measured at fair value and whose changes are included in current profits and losses
The Company classifies the above-mentioned financial assets measured at amortized cost and the financial
assets other than those measured at fair value and whose changes are included in other comprehensive income as
financial assets measured at fair value and whose changes are included in current profits and losses, and lists them
as transactional financial assets. In addition, at the time of initial recognition, in order to eliminate or significantly
reduce accounting mismatch, the company designates some financial assets as financial assets measured at fair
value and whose changes are included in the current profits and losses (once the designation is made, it cannot be
revoked). In regard with such financial assets, the Company adopts fair value for subsequent measurement, and
76
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
includes changes in fair value into current profits and losses.
3. Classification and measurement of financial liabilities
The Company's financial liabilities are classified into: financial liabilities measured at amortized cost and
financial liabilities measured at fair value with changes recorded in current profits and losses upon initial
recognition. Financial liabilities are measured at fair value upon initial recognition. For financial liabilities
measured at fair value and whose changes are included in current profits and losses, relevant transaction costs are
directly included in current profits and losses, and relevant transaction costs for other financial liabilities are
included in their initial recognition amount.
(1) Financial liabilities measured in amortized cost
Except for the following items, the Company classifies financial liabilities as financial liabilities measured in
amortized cost: 1) Financial liabilities measured at fair value and whose changes are included in current profits
and losses; 2) Financial liabilities resulting from the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets; 3) Financial guarantee contracts that
do not belong to the first two types of situations, and loan commitments that do not belong to the first type of
situations with loan at a interest rate lower than market.
For such financial liabilities, the real interest rate method is adopted and the subsequent measurement is
carried out according to amortized cost. When derecognition is terminated, the difference between the
consideration paid and the book value of the financial liability shall be included in the current profits and losses.
(2) Financial liabilities measured at fair value and whose movements are included in the profit and loss of the
current period
Such financial liabilities include: transactional financial liabilities and financial liabilities designated to be
measured at fair value at the time of initial recognition and whose changes are included in current profits and
losses. Subsequent measurement of such financial liabilities shall be based on fair value, and the gains or losses
incurred from the changes of fair value, as well as the dividend and interest expenses related to such financial
liabilities would be included in current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities
measured at fair value at the time of initial measurement and whose changes are included in current profits and
losses: 1) The designation can eliminate or significantly reduce accounting mismatch; 2) According to the
company's risk management or investment strategy stated in official written documents, manage and evaluate the
financial liability portfolio or the combination of financial assets and financial liabilities on the basis of fair value,
and report to key management personnel within the company on this basis; 3) The financial liability includes
embedded derivatives that need to be split separately.
4. Fair value of financial instruments
The fair value of financial assets or financial liabilities with active markets shall be determined based on
quotations from active markets; Quotations in active markets include quotations for related assets or liabilities that
can be easily and regularly obtained from exchanges, dealers, brokers, industry groups, pricing agencies or
regulatory agencies, and can represent actual and frequent market transactions on the basis of fair trading.
The fair value of financial assets or financial liabilities that do not exist in an active market shall be
determined by valuation techniques. In valuation, the Company adopts valuation techniques that are applicable in
the current situation and supported by sufficient data and other information to select input values consistent with
the characteristics of assets or liabilities considered by market participants in the transactions of related assets or
liabilities, and give priority to the use of relevant observable input values as far as possible. If the relevant
observable input value cannot be obtained or is not feasible, the unobservable input value shall be used.
77
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
5. Transfer of financial assets
If the company has transferred almost all risks and rewards in the ownership of the financial asset to the
transferee, the confirmation of the financial asset shall be terminated; If almost all risks and rewards on the
ownership of a financial asset are retained, the financial asset shall continue to be recognized.
If the Company neither transfers nor retains almost all risks and rewards in the ownership of financial assets,
it shall be handled according to the following situations respectively: (1) If the control over the financial assets is
not retained, the recognition of the financial assets shall be terminated, and the rights and obligations arising from
or retained in the transfer shall be separately recognized as assets or liabilities; (2) If the control over the financial
asset is retained, the relevant financial asset shall continue to be recognized according to the extent that it
continues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized
accordingly. The extent to which the company continues to be involved in the transferred financial assets refers to
the extent to which the company bears the risks or rewards of changes in the value of the transferred financial
assets.
In judging whether the financial asset transfer meets above financial asset derecognition conditions, the
principle of substance surpassing form is adopted. The Company divides the transfer of financial assets into
overall transfer and partial transfer. If overall transfer of financial assets meets the derecognition conditions, the
difference between the following two amounts will be accounted into current profits or losses:
(1) Book value of the transferred financial assets;
(2) The sum of the consideration received due to the transfer and the accumulated amount of changes in the
fair value which is originally accounted in the owner's equity (in case the financial asset related to the transfer is
the financial asset available for sale)
Where the partial transfer of the financial assets meets the derecognition condition, the entire book value of
the transferred financial assets shall be respectively amortized at the relative fair values of the part derecognized
and the part not derecognized, and the difference between the following two items is accounted in profits and
losses of current period:
(1) Book value of the derecognised part;
(2) The sum of the derecognised part and the amount corresponding to the derecognized part in the
accumulated amount of changes in the fair value previously recognized directly in the owner's equity (in case of
the financial assets involved in the transfer are available-for-sale financial assets). Where the transfer of the
financial assets does not meet the derecognition condition, such financial assets is recognized continuously, and
the received consideration is recognized as a financial liability.
6. Provision for impairment of financial assets (excluding receivables)
Based on the expected credit losses, the Company evaluates the expected credit losses of financial assets
measured in amortized cost and financial assets measured at fair value and whose changes are included in other
comprehensive income, conducts impairment accounting and confirms the loss reserve. Expected credit loss refers
to the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit loss
refers to the difference between the cash flow of all contracts discounted according to the original real interest rate
and the expected cash flow of all contracts receivable according to the contract, that is, the present value of all
cash shortages.
When one or more events that adversely affect the expected future cash flow of a financial asset occur, the
financial asset becomes a financial asset with credit impairment. Evidence of credit impairment of financial assets
includes the following observable information: (1) Major financial difficulties of the issuer or debtor; (2) The
debtor violates the contract, such as default or overdue payment of interest or principal, etc.; (3) Creditors give
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
concessions that the debtor will not make under any other circumstances due to economic or contractual
considerations related to the debtor's financial difficulties; (4) The debtor is likely to go bankrupt or undergo other
financial reorganization; (5) The financial difficulties of the issuer or debtor lead to the disappearance of the active
market of the financial asset; (6) A financial asset is purchased or generated at a substantial discount, which
reflects the fact that credit losses have occurred. Credit impairment of financial assets may be caused by the
combined action of multiple events, and may not be caused by separately identifiable events.
On each balance sheet date, the Company separately measures the expected credit losses of financial
instruments at different stages. If the credit risk of financial instruments has not increased significantly since the
initial confirmation, it is in the first stage. The Company measures the loss reserve according to the expected
credit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since its
initial recognition but no credit impairment has occurred, it is in the second stage. The Company measures the loss
reserve according to the expected credit loss of the instrument throughout the duration; If a financial instrument
has suffered credit impairment since its initial recognition, it is in the third stage. The Company measures the loss
reserve according to the expected credit loss of the instrument throughout the duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that their
credit risk has not increased significantly since the initial confirmation, and measures the loss reserve according to
the expected credit loss in the next 12 months. For financial instruments in the first and second stages and with
low credit risk, the Company calculates interest income based on the book balance before deducting impairment
provisions and the actual interest rate. For financial instruments in the third stage, the interest income shall be
calculated according to their book balance minus the amortized cost after impairment provision and the actual
interest rate.
7. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without offsetting each other.
However, if the following conditions are met at the same time, the net amount after offset shall be listed in the
balance sheet: (1) The company has the legal right to offset the confirmed amount, and such legal right is currently
enforceable; (2) The Company plans to settle on a net basis, or realize the financial assets and settle the financial
liabilities at the same time.
11.Notes receivable
For bills receivable, regardless of whether they contain significant financing components, the company
always measures its loss reserves according to the amount equivalent to the expected credit loss during the whole
duration. The increase or reversal amount of loss reserves thus formed shall be included in the current profits and
losses as impairment losses or profits.
The Company only uses bank acceptance bills for settlement, and the management evaluates this category of
money as with lower credit risk. If there is objective evidence that a certain bill receivable has suffered credit
impairment, the Company will make bad debt provision for the bill receivable and confirm the expected credit
loss.
12.Account receivable
The Company shall make provision for bad debts according to the expected credit loss amount of accounts
receivable during the whole duration.
For accounts receivable with similar credit risk characteristics, the company combines them according to the
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
aging status. According to historical experience, the expected loss rate of such combined accounts receivable
during the whole duration is estimated as follows:
Aging Expected loss rate of accounts receivable (%)
Within 1 year（Including 1 year） 5.00
1-2 years 10.00
2-3 years 30.00
Over 3 years 50.00
If there is objective evidence that a certain account receivable has suffered credit impairment, the Company
will make bad debt provision for the account receivable and confirm the expected credit loss. Accounts receivable
with an amount of more than 1 million are classified as accounts receivable with significant single amount and
provision for bad debts separately, while accounts receivable with no more than 1 million are classified as
accounts receivable with insignificant single amount and provision for bad debts separately.
13. Receivable financing
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
For other receivables, regardless of whether with any significant financing component, the Company
considers all reasonable and reliable information, including forward-looking information, estimates the expected
credit loss of other receivables in a single or combined manner, and adopts a simplified model of expected credit
loss, and always measures the loss reserve according to the expected credit loss throughout the duration. The
accrual method is as follows:
1. At the end of the period, other receivables that have objective evidence of impairment are individually
tested for impairment, and impairment losses are recognized and provision for bad debts is made according to the
difference between the present value of expected future cash flows and their book values.
2. When a single other receivable cannot evaluate the expected credit loss at a reasonable cost, the Company
divides other receivable portfolios according to the credit risk characteristics and calculates the expected credit
loss on the basis of the portfolios. Aging usually reflects the credit risk status of other receivables. The larger the
aging, the greater the credit risk in general. According to historical experience, the expected loss rate of other
receivables with different aging status during the entire duration is estimated as follows:
Aging Expected loss rate of other accounts receivable (%)
Within 1 year（Including 1 year） 5.00
1-2 years 10.00
2-3 years 30.00
Over 3 years 50.00
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
15. 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 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
Low cost and short-lived consumable items are amortized using immediate write-off method。
16.Contract assets
Not applicable
17.Contract cost
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
18.Held-for-sale assets
If the company recovers its book value mainly by sale of non-current asset (including exchange of
non-monetary assets of commercial nature and similarly hereinafter) , instead of continued use of one non-current
asset or disposal group, which shall be included into available-for-sale. In specific standards, the following
conditions shall be met at the same time: One non-current asset or disposal group is available for sale at all times
under current status depending on standard practice of selling them in similar transactions; the company has made a
resolution on the sale plan and gained definitive purchase commitments; the sale is expected to be finished within
one year. In which, the disposal group refers to one set of assets that may be disposed as a whole along with other
assets by sale or other ways in one deal and the liability transferred and related directly to such assets. If the asset
group or combination of asset group under account title disposal group amortizes the goodwill obtained from
business combination in accordance with No.8 of Accounting Standards for Business Enterprises-- Asset
Impairment, the disposal group shall include the goodwill amortized to it.
When the company’s initial measurement or re-measurement on the balance sheet date is classified into
available-for-sale non-current asset and disposal group, the book value shall be written down to the net amount of
fair value minus selling expenses if it is higher than the net amount of fair value minus selling expenses, the
write-down shall be confirmed as the assets impairment loss and included in current profits and losses, meanwhile
the available-for-sale asset depreciation reserves shall be accrued. For the disposal group, the asset impairment loss
shall be written off pro rata the book value of each non-current asset that is applicable to No.42 of Accounting
Standards for Business Enterprises: Available-for-sale Non-current Assets, Disposal Group and Discontinued
Operations (hereinafter referred to as “Available-for-sale rule for measurement”) after deducting the book value of
goodwill in it.
If the net amount of the fair value of available-for-sale disposal group minus selling expenses increases after
the balance sheet date, the previous write-downs shall be recovered and reversed in asset impairment loss of
non-current assets that are applicable to available-for-sale rule for measurement after being included into
available-for-sale account title, the amount of reversal shall be included in current profits and losses and increased
pro rata its book value based on the proportion of the book value of each non-current asset in the disposal group that
is applicable to available-for-sale rule for measurement except for goodwill; the book value of written-off goodwill
and the asset impairment loss confirmed before the non-current asset specified in available-for-sale rule for
measurement is classified into available-for-sale asset must not be reversed.
The available-for-sale non-current assets or the non-current assets in the disposal group shall not be accrued
depreciation or amortization, the interest of debit in available-for-sale disposal group and other expenses shall
continue to be confirmed.
The non-current asset will no longer be included into available-for-sale category or will be removed from the
available-for-sale disposal group if it or the disposal group has no longer satisfied the conditions for classifying
available-for-sale assets and measured as per the lower of: (1) book value of the non-current asset before being
classified into available-for-sale asset adjusted on the basis of the depreciation, amortization or impairment that
shall be confirmed on the assumption that the non-current asset is not included into available-for-sale account title;
(2)Recoverable amount.
19.Creditor's rights investment
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
20. Other Creditor's rights investment
Not applicable
21.Long-term account receivable
Not applicable
22.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.)
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's ne
t identifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-term
equity investment; the initial investment cost is less than the investee unit share of identifiable net assets at fair val
ue, 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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 estimated share 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 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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 financial
statements 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 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.
23.Investment property
The measurement mode of investment property
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
The company shall adopt the cost mode to measure the investment property.
Depreciation or Amortization Method by Use of Cost Mode
1．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.
24.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 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%
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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.
(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.
25.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.
26.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:
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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.
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.
27.Biological Assets
Not applicable
28.Oil & Gas assets
Not applicable
29. Right to use assets
Not applicable
30.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.
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(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.
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.
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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, 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.
31.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.
32.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 book kept 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.
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33.Contract liabilities
Not applicable
34.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 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.
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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.
35.Lease liabilities
Not applicable
36. 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 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
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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.
37. Share payment
1.Accounting Treatment Methods of Share Payment
Share payment is a transaction which is for obtaining the service provided by employees or other parties, where
thus the equity instrument is granted , or for bearing the liability confirmed basing on the equity instrument. Share
payment is divided into the payment settled by equities and the payment settled by cash.
(1)Shared Payment settled by Equities
The share payment settled by equities, which is used for exchanging the service provided by employees, will
be measured according to the fair value of the equity instrument granted to employees on date of grant. The
amount of such fair value, under the situation that the rights can only be exercised after the service is finished and
the set performance is achieved within the waiting period, and basing on the optimum estimation for the number
of equity instrument which exercise rights within the waiting period, will be measured according to straight-line
method and counted into relevant costs and expenses. When the rights can be exercised immediately after being
granted, the payment will be counted into relevant costs and expenses, and the capital reserve will be increased
correspondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum estimations
according to the newly-obtained subsequent information after the changes occurred in the number of employees
who exercise rights so as to modify the predicted number of the equity instrument of exercising rights. The
influence from above-mentioned estimations will be counted into relevant costs and expenses at the current period,
and the corresponding adjustment will be made for the capital reserve.
If the fair value of the other parties’ service can be reliably measured, the share-based payment settled by equities
which is used for exchanging the service of other parties will be measured according to that fair value on date of
acquisition. If not, but the fair value of the equity instrument can be reliably measured, the payment will be
counted according to the fair value of the equity instrument on date of service acquisition, and it will be counted
into relevant costs and expenses, and the equity of the shareholders will be increased correspondingly.
(2) Share Payment settled by Cash
The share payment settled by cash will be measured according to the fair value of the liability confirmed basing
on the shares borne by the Company and other equity instruments. If the rights can be exercised immediately after
being granted, the payment will be counted into relevant costs or expenses and the liability will be increased
correspondingly. If the rights can only be exercised after the situation that service within the waiting period is
completed and set performance is achieved, the service obtained at the current period,according to the fair value
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amount of the liability borne by the Company, and basing on the optimum estimation for the condition of
exercising rights, will be counted into costs or expenses on each and every balance sheet date during the waiting
period, and the liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value of
liability will be remeasured, of which changes occurred will be counted into the current period.
2.Relevant Accounting Treatment of Modification and Termination for Share-based Payment Plan
When the Company modifies the share payment plan, if the fair value of the equity instrument granted is
increased after the modification, the increase in the service obtained will be correspondingly confirmed according
to the increase in the fair value of equity instrument. The increase in the fair value of equity instrument means the
balance between the equity instrument before modification and the equity instrument after modification on
modification date. If decrease occurred in the total fair value of the equity instrument after the modification or
methods which are unbeneficial to employees are adopted in the modification, accounting treatment will still
continue to be made for the service obtained, and such changes will be regarded as changes that have never
occurred unless the Company has canceled partial or all equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat the cancelled
equity instrument as the accelerated exercise of power, and immediately include the balance that should be
recognized in the remaining waiting period into the current profit and loss, and simultaneously confirm the capital
reserve. If the employee or other party can choose to satisfy the non-exercisable condition but not satisfied in the
waiting period, then the company will treat it as cancellation of the granted equity instrument.
3. Accounting treatment involving the share payment transaction between the Company and the shareholders
or the actual controller of the Company
Where involves the share payment transaction between the Company and the shareholders or the actual
controller of the Company and one of the parties of the settlement company and the service-accepting company is
within the company and the other is not within the company, then the company performs the accounting treatment
in the consolidated financial statements of the company according to the following provisions:
(1) If the settlement company settles in its own equity instrument, then it treats the equity payment
transaction as the equity-settled equity payment; otherwise, it treats as the cash-settled equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized as a
long-term equity investment in the service-accepting company in accordance with the fair value of the equity
instrument or the fair value of the liability it is assumed to bear on the grant date, and the capital reserve (other
capital reserve) or liabilities shall be recognized at the same time.
(2) If the service-accepting company has no settlement obligation or confers its own equity tools on the
employees of the company, then such equity payment transaction shall be treated as equity-settled equity payment;
if the service-accepting company has the settlement obligation and confers the employees of the company with not
its own equity instrument, then such equity payment transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company, and the
service-accepting company and the settlement company are not the same company, then the confirmation and
measurement of the equity payment transaction shall be carried out respectively in the financial report of the
service-accepting company and the settlement company, with the same analogy of the above-said principle.
38. Other financial instruments such as preferred stocks and perpetual bonds
Not applicable
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39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
□ Yes √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 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
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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.
40.Government subsidy
Government grants are monetary assets and non-monetary assets that the company has obtained free of charge
from the government and are divided into government grants related to assets and government grants related to
income. Asset-related government grants refer to government grants obtained by the company that are used to
purchase or construct or otherwise form long-term assets. Income-related government subsidies refer to government
subsidies other than government subsidies related to assets.
If there is evidence at the end of the period that the company is able to meet the relevant conditions stipulated in
the financial support policy and it is expected to receive financial support funds, the government subsidies shall be
recognized according to the amount receivable. In addition, government grants are confirmed upon actual receipt.
Asset-related government grants are recognized as deferred income and are charged to profit or loss for the
current period in a reasonable and systematic manner over the useful life of the relevant assets. Revenue-related
government subsidies, which are used to compensate for the related costs or losses of the Company in the future
period, are recognized as deferred income, and are recognized in the profits and losses of the current period in the
period in which the relevant costs, expenses or losses are recognized. The relevant costs, expenses or losses that
have been used to compensate the Company have been directly recorded in the current profits and losses.
Government grants related to the company's daily activities are included in other income; those unrelated to the
daily activities of the company are included in non-operating income.
For the policy-subsidized discounted loans obtained by the company, the accounting treatment is divided into
the following two cases: when the finance allocates the interest-subsidy funds to the loan bank and the loan bank
provides the company with a policy-based preferential interest rate, the company uses the actual amount of the
loan received as the entry value of the loan, and calculates the relevant borrowing costs according to the loan
principal and the preferential policy interest rate; if the finance allocates the interest-free funds directly to the
company, the company will reduce the relevant borrowing costs by the corresponding discount interest.
41.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).
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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 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.
42.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.
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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 fiancé
expense 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 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.
43. Other important accounting policies and accounting estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
Approval
The content and reason for change of accounting policy Remarks
process
In 2017, the Ministry of Finance revised and promulgated the Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of Financial Instruments,
Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets,
Adopted
Accounting Standards for Business Enterprises No.24-Hedge Accounting and Accounting
at the
Standards for Business Enterprises No.37-Presentation of Financial Instruments (the above http://www.cninfo.com.cn
18th
four standards are collectively referred to as the "New Financial Instruments Standards"), On April
meeting
requiring enterprises listed both in China and abroad at the same time, as well as enterprises 27,2019(Announcement
of the 7th
listed abroad and using International Financial Reporting Standards or Accounting Standards No.2019-17)
Board of
for Business Enterprises to prepare financial reports, to implement them on January 1, 2018;
Directors
Other domestic listed enterprises are required to implement them on January 1, 2019.
According to the regulations, the company will implement the new financial instrument
standards from January 1, 2019 and adjust the relevant contents of accounting policies.
On April 30, 2019, the Ministry of Finance issued the Notice on Revising and Issuing the Adopted
Format of Financial Statements for General Enterprises in 2019 (CK [2019] No.6) at the
http://www.cninfo.com.cn
(hereinafter referred to as "CK [2019] No.6"), requiring non-financial enterprises that 20th
On August
implement the Accounting Standards for Enterprises to prepare financial statements in meeting
21,2019(Announcement
accordance with the requirements of the Accounting Standards for Enterprises and CK [2019] of the 7th
No.2019-38)
No.6. The interim financial statements and annual financial statements for enterprises in 2019 Board of
and the financial statements for subsequent periods shall be prepared and implemented in Directors
99
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
accordance with the requirements of CK [2019] No.6.
The Company will implement the new financial instrument standards from January 1, 2019. For the impact on
the items related to the financial statements at the beginning of the year, please refer to the following "(3)
Implementation of the adjustment of the new financial instrument standards, new income standards and new lease
standards for the first time, and implementation of the items related to the financial statements at the beginning of
the year for the first time".
Since the semi-annual financial report on June 30, 2019 and the financial reports for the following periods,
the company has implemented the requirements of the CK [2019] No.6, and restated the items and amounts of the
initial financial statements as follows:
The specific contents of accounting policy changes Name of Financial Statement At the beginning of the consolidated balance
Items Affected sheet or the impact amount of the
consolidated income statement in the same
period last year (RMB)
The company will split "notes receivable and Notes receivable 886,432.06
accounts receivable" into "accounts receivable" and Account receivable 528,454,015.59
"notes receivable" for listing. Notes receivable and account -529,340,447.60
receivable
The company will split "notes payable and Notes payable
accounts payable" into "accounts payable" and Account payable 180,239,452.00
"notes payable" for listing. Notes payable and account -180,239,452.00
receivable
Except for the above matters, the company's important accounting policies have not changed.
（2）Change of main accounting estimations
□ Applicable √Not applicable
（3）Implementation of the adjustment of the new financial instrument standards, new income standards and new
lease standards for the first time, and implementation of the items related to the financial statements at the
beginning of the year for the first time
√ Applicable □Not applicable
Consolidated balance sheet
In RMB
Items December 31,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 1,141,759,374.60 1,141,759,374.60
Settlement provision
Outgoing call loan
Transactional financial assets 540,000,000.00 540,000,000.00
100
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Financial assets measured
at fair value with variations
accounted into current
income account
Derivative financial assets
Notes receivable 886,432.06 886,432.06
Account receivable 528,454,015.59 528,454,015.59
Financing of receivables
Prepayments 229,028,791.15 229,028,791.15
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account
14,846,896.50 14,846,896.50
receivable
Including：Interest
5,589,704.44 5,589,704.44
receivable
Dividend
receivable
Repurchasing of
financial assets
Inventories 439,752,718.77 439,752,718.77
Contract assets
Assets held for sales
Non-current asset due within
1 year
Other current asset 639,797,959.30 99,797,959.30 -540,000,000.00
Total of current assets 2,994,526,187.97 2,994,526,187.97
Non-current assets：
Loans and payment on
other’s behalf disbursed
Debt investment
Available for sale of
45,373,784.87 -45,373,784.80
financial assets
Other investment on
bonds
Expired investment in
possess
Long-term receivable
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Long term share equity
32,952,085.66 32,952,085.66
investment
Other equity instruments
241,875,289.00 241,875,289.00
investment
Other non-current financial
assets
Property investment 167,997,941.98 167,997,941.98
Fixed assets 987,876,247.55 987,876,247.55
Construction in progress 15,621,286.64 15,621,286.64
Production physical
assets
Oil & gas assets
Use right assets
Intangible assets 37,880,815.85 37,880,815.85
Development expenses
Goodwill
Long-germ expenses to be
1,486,209.03 1,486,209.03
amortized
Deferred income tax asset 6,036,198.23 6,036,198.23
Other non-current asset 329,452,659.01 329,452,659.01
Total of non-current assets 1,624,677,228.82 1,821,178,732.95 196,501,504.13
Total of assets 4,619,203,416.79 4,815,704,920.92 196,501,504.13
Current liabilities
Short-term loans 411,522,111.40 411,522,111.40
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Financial liabilities measured
at fair value with variations
accounted into current
income account
Derivative financial
liabilities
Notes payable
Account payable 180,239,452.90 180,239,452.90
Advance receipts 120,702,951.37 120,702,951.37
102
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of securities
Employees’ wage payable 32,506,267.08 32,506,267.08
Tax payable 7,745,128.99 7,745,128.99
Other account
229,015,279.98 229,015,279.98
payable
Including：Interest
39,044,044.39 39,044,044.39
payable
Dividend
payable
Fees and commissions
payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due
40,000,000.00 40,000,000.00
within 1 year
Other current liability
Total of current liability 1,021,731,191.72 1,021,731,191.72
Non-current liabilities：
Reserve fund for
insurance contracts
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term
payable
Long-term remuneration
payable to staff
Expected liabilities
103
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Deferred income 137,991,698.33 137,991,698.33
Deferred income tax
49,125,376.03 49,125,376.03
liability
Other non-current liabilities
Total non-current liabilities 137,991,698.33 187,117,074.36 49,125,376.03
Total of liability 1,159,722,890.05 1,208,848,266.08 49,125,376.03
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,865,716,983.63 1,865,716,983.63
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 1,339,208.41 148,715,336.51 147,376,128.10
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Common risk provision
Retained profit -57,774,473.41 -57,774,473.41
Total of owner’s equity
2,373,329,991.86 2,520,706,119.96 147,376,128.10
belong to the parent company
Minority shareholders’ equity 1,086,150,534.88 1,086,150,534.88
Total of owners’ equity 3,459,480,526.74 3,606,856,654.84 147,376,128.10
Total of liabilities and
4,619,203,416.79 4,815,704,920.92 196,501,504.13
owners’ equity
Balance sheet of Parent Company
In RMB
Items December 31,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 85,416,567.74 85,416,567.74
Transactional financial assets 500,000,000.00 500,000,000.00
Financial assets measured
at fair value with variations
accounted into current
104
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
income account
Derivative financial assets
Notes receivable
Account receivable 541,948.21 541,948.21
Financing of receivables
Prepayments 17,436.00 17,436.00
Other account receivable 13,856,382.02 13,856,382.02
Including：Interest
4,974,799.47 4,974,799.47
receivable
Dividend
receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due
within 1 year
Other current asset 500,000,000.00 -500,000,000.00
Total of current assets 599,832,333.97 599,832,333.97
Non-current assets：
Debt investment
Available for sale of
15,373,784.87 -15,373,784.87
financial assets
Other investment on
bonds
Expired investment in
possess
Long-term receivable
Long term share equity
1,997,175,852.27 1,997,175,852.27
investment
Other equity instruments
199,910,297.83 199,910,297.83
investment
Other non-current financial
assets
Property investment 161,053,628.71 161,053,628.71
Fixed assets 26,565,399.91 26,565,399.91
Construction in
progress
Production physical
105
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
assets
Oil & gas assets
Use right assets
Intangible assets 1,012,374.75 1,012,374.75
Development expenses
Goodwill
Long-germ expenses to be
amortized
Deferred income tax asset 5,818,069.48 5,818,069.48
Other non-current asset
Total of non-current assets 2,206,999,109.99 2,391,535,622.95 184,536,512.96
Total of assets 2,806,831,443.96 2,991,367,956.92 184,536,512.96
Current liabilities
Short-term loans
Transactional financial
liabilities
Financial liabilities measured
at fair value with variations
accounted into current
income account
Derivative financial
liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 639,024.58 639,024.58
Contract Liabilities
Employees’ wage payable 9,760,306.51 9,760,306.51
Tax payable 5,494,627.33 5,494,627.33
Other account
141,746,352.67 141,746,352.67
payable
Including：Interest
payable
Dividend
payable
Liabilities held for sales
Non-current liability due
within 1 year
106
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Other current liability
Total of current liability 158,052,054.66 158,052,054.66
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 700,000.00 700,000.00
Deferred income tax
46,134,128.24 46,134,128.24
liability
Other non-current liabilities
Total non-current liabilities 700,000.00 46,834,128.24 46,134,128.24
Total of liability 158,752,054.66 204,886,182.90 46,134,128.24
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,599,025,454.96 1,599,025,454.96
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 1,339,208.41 139,741,593.13 138,402,384.72
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Retained profit 483,666,452.70 483,666,452.70
Total of owners’ equity 2,648,079,389.30 2,786,481,774.02 138,402,384.72
Total of liabilities and
2,806,831,443.96 2,991,367,956.92 184,536,512.96
owners’ equity
107
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
□ Applicable √Not applicable
45.Other
Nil
VI.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT The taxable turnover 16%，13%，5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%，16.5%，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
Shenzhen Shengbo Optoelectronic Technology Co., Ltd. 15%
Shengtou（HK）Co., Ltd. 16.5%
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 Administration of Custo
ms and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development
of New-type Display Device Industry (Cai Guan Shui (2016) No. 62), Shenzhen Shengbo Optoelectronic Technol
ogy Co., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices includin
g colorful light filter coating and polarizer sheet that comply with the planning for independent development of do
mestic industries may enjoy the preferential policies of exemption from import tariff for the import of raw materia
ls and consumables for the purpose of self use and production that can not be produced domestically from January
1, 2016 and December 31, 2020.
3.Other
Nil
108
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 10,934.20 13,559.60
Bank deposit 260,939,206.53 1,137,431,239.39
Other monetary funds 158,277,057.87 4,314,575.61
Total 419,227,198.60 1,141,759,374.60
Including : The total amount of deposit
3,516,279.32 9,294,408.13
abroad
Other notes
Note: ① Ending amount of other monetary funds was RMB 4,310,530.42 And deposit an investment of
RMB 4045.19.
②As of June 30, 2019，The fixed-term deposit balance of money fund is RMB 163,680,930.25 , this part will not
be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2. Transactional financial assets
In RMB
Items Year-end balance Year-beginning balance
financial assets measured at their fair
values and with the variation included in 760,000,000.00 540,000,000.00
the current profits and losses
Including：
Designation of financial assets measured at
their fair values and with the variation
included in the current profits and losses
Including：
Total 760,000,000.00 540,000,000.00
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 31,079,249.92 886,432.06
Total 31,079,249.92 886,432.06
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：Nil
Of which the significant actual write-off accounts receivable:
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RMB
Items Pledged amount
Bank acceptance 0.00
Total 0.00
（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the balance
sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance 46,707,583.37 0.00
Total 46,707,583.37 0.00
110
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
Not applicable
（6） The actual write-off accounts receivable
Not applicable
5. 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
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) n(%)
Accrual of bad debt
13,247,0 9,454,40 3,792,678 13,233,46 9,436,550 3,796,913.9
provision by single 2.49% 71.37% 2.34% 71.31%
84.82 6.18 .64 4.33 .41 2
item
Including：
Accounts receivable
of individual
significance and 6,300,45 3,998,20 2,302,254 6,300,455 3,998,201 2,302,254.0
1.18% 63.46% 1.11% 63.46%
subject to individual 5.84 1.79 .05 .84 .79 5
impairment
assessment
Accounts receivable
of individual
insignificance but 6,946,62 5,456,20 1,490,424 6,933,008 5,438,348 1,494,659.8
1.31% 78.54% 1.23% 78.44%
subject to individual 8.98 4.39 .59 .49 .62 7
impairment
assessment
Accrual of bad debt
519,241, 25,980,9 493,260,5 552,278,6 27,621,58 524,657,10
provision by 97.51% 5.00% 97.66% 5.00%
524.88 61.95 62.93 88.56 6.89 1.67
portfolio
Including：
532,488, 35,435,3 497,053,2 565,512,1 37,058,13 528,454,01
Total 100.00% 6.65% 100.00% 6.55%
609.70 68.13 41.57 52.89 7.30 5.59
Accrual of bad debt provision by single item:9,454,406.18 yuan
In RMB
111
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Beyond the credit period
Dongguan Fair LCD Co.,
1,695,947.73 1,695,947.73 100.00% for a long time, uncertain
Ltd.
recovered.
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.
Huangshan Zhongxian Beyond the credit period
Microelectronics Co., 904,518.00 452,259.00 50.00% for a long time, uncertain
Ltd. recovered.
Mianyang Zijin New Beyond the credit period
Material Technology Co., 598,226.43 598,226.43 100.00% for a long time, uncertain
Ltd. recovered.
Shanghai Weizhou Beyond the credit period
Microelectroniics 525,471.80 525,471.80 100.00% for a long time, uncertain
Technology Co., Ltd. recovered.
Shenzhen Chuangyu Beyond the credit period
Display Technology Co., 487,288.00 243,644.00 50.00% for a long time, uncertain
Ltd. recovered.
Beyond the credit period
Dongguan Jiaxian
486,510.50 486,510.50 100.00% for a long time, uncertain
Electronic Co., ltd.
recovered.
Shenzhen Guanguan Beyond the credit period
Lida Microelectronic 475,399.34 237,699.67 50.00% for a long time, uncertain
Co., Ltd. recovered.
Beyond the credit period
Jilin Lianbei Optical
443,768.72 221,884.36 50.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period
Hefei Guoyun Electronic
396,539.19 396,539.19 100.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
The Individual amount is
Other 2,628,907.00 2,293,969.44 87.26% small，Beyond the credit
period for a long time,
112
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
uncertain recovered.
Total 13,247,084.82 9,454,406.18 -- --
Accrual of bad debt provision by portfolio:25,980,961.95 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 518,978,068.05 25,948,903.41 5.00%
1-2 years 234,892.53 23,489.25 10.00%
2-3 years 28,564.30 8,569.29 30.00%
Over 3 years 50.00%
Total 519,241,524.88 25,980,961.95 --
Notes of the basis of recognizing the group: The combination of the ageing status of accounts receivable as a
credit risk feature.
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 518,978,068.05
Including：Subtotal within 1 year 518,978,068.05
1-2 years 234,892.53
2-3 years 737,059.92
Over 3 years 12,538,589.20
3-4 years 940,955.57
4-5 years 5,171,125.69
Over 5 years 6,426,507.94
Total 532,488,609.70
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Write- Closing balance
Accrual
collected amount off
113
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Accrual of bad debt provision by portfolio: 27,621,586.89 1,640,624.94 25,980,961.95
Accrual of bad debt provision by single item: 9,436,550.41 17,855.77 9,454,406.18
Total 37,058,137.30 17,855.77 1,640,624.94 35,435,368.13
(3) The actual write-off accounts receivable
Nil
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Balance in Proportion(%) Bad debt provision
Name Nature Aging
year-end
First Goods 196,533,056.38 Within 1 year 36.91 98,266,528.19
Second Goods 85,255,501.33 Within 1 year 16.01 42,627,750.67
Third Goods 44,711,746.41 Within 1 year 8.4 22,355,873.21
Fourth Goods 42,398,221.61 Within 1 year 7.96 21,199,110.81
Fifth Goods 24,205,117.48 Within 1 year 4.55 12,102,558.74
Total 39313,643.21 73.82 196,551,821.61
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
6. Financing of receivables
Changes in the current period of receivables financing and fair value
□ Applicable √ Not applicable
Relevant information of the financing provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to the general
model of expected credit loss:
□ Applicable √ Not applicable
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 132,181,990.10 98.25% 226,726,744.30 98.99%
114
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
1-2 years 2,313,164.78 1.72% 2,263,886.85 0.99%
Over 3 years 38,160.00 0.03% 38,160.00 0.02%
Total 134,533,314.88 -- 229,028,791.15 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
Nil
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion %
First 48,688,000.00 36.19
Second 48,600,000.00 36.12
Third 15,989,512.58 11.89
Fourth 5,460,517.24 4.06
Fifth 3,011,939.75 2.24
Total 121,749,969.57 90.50
Other notes: Nil
8.Other receivable
In RMB
Items Closing balance Opening balance
Interest receivable 7,067,282.69 5,589,704.44
Other accounts receivable 7,498,823.53 9,257,192.06
Total 14,566,106.22 14,846,896.50
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 867,156.10 1,302,963.56
Structure deposit 6,200,126.59 4,286,740.88
Total 7,067,282.69 5,589,704.44
2) Significant overdue interest
Nil
115
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Customs bond 101,758.24
Export rebate 1,556,952.58 3,140,110.71
Unit account 14,957,706.87 15,451,643.71
Deposit 1,454,844.79 1,875,008.00
Reserve fund and staff loans 723,581.27 506,154.77
Other 4,540,265.50 4,227,892.82
Total 23,233,351.01 25,302,568.25
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
1,652,090.82 14,393,285.37 16,045,376.19
2019
Balance as at January 1,
—— —— —— ——
2019 in current
Turn back in the current
310,848.71 310,848.71
period
Balance as at June 30 1,341,242.11 14,393,285.37 15,734,527.48
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
116
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Within 1 year(Including 1 year） 6,151,387.34
Including：Subtotal within 1 year 6,151,387.34
1-2 years 659,376.54
2-3 years 2,034,578.96
Over 3 years 14,388,008.17
3-4 years 600,709.97
4-5 years 625,372.54
Over 5 years 13,161,925.66
Total 23,233,351.01
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Accrual of bad debt
1,652,090.82 310,848.71 1,341,242.11
provision by portfolio
Accrual of bad debt
14,393,285.37 14,393,285.37
provision by single item
Total 16,045,376.19 310,848.71 15,734,527.48
The company's provision for bad debts of other receivables is based on the expected loss method, and the
credit loss of other receivables is expected throughout the duration. For other receivables with similar risk
characteristics, the company combines them according to aging status, and the expected credit loss rate
corresponding to aging is shown in this Section V, Important Accounting Policies and Other Receivables in
Accounting Estimates; At the end of the period, other receivables that have objective evidence of impairment are
individually tested for impairment, and impairment losses are recognized and provision for bad debts is made
according to the difference between the present value of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and provision for
bad debts are shown in the following table:
Closing balance
Aging
238,838,915.04 Provision for bad debts Expected loss rate（%）
Within 1 year 6,151,387.34 307,569.37 5.00
1-2 years 659,376.54 65,937.65 10.00
2-3 years 234,578.96 70,373.69 30.00
Over 3 years 1,794,722.80 897,361.40 50.00
Total 8,840,065.64 1,341,242.11
117
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected 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 5 years 49.02% 11,389,044.60
Second Estimated tax 2,857,902.98 Within 1 year 12.30% 142,895.15
Third Unit account 1,800,000.00 2-3 years 7.75% 1,800,000.00
Fourth Export rebate 1,556,952.58 Within 1 year 6.70% 77,847.63
Fifth Deposit 980,461.06 Over 5 years 4.22% 490,230.53
Total -- 18,584,361.22 -- 79.99% 13,900,017.91
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
9.Inventory
Whether implemented new revenue guidelines?
□Yes√ 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 205,355,616.56 8,721,102.80 196,634,513.76 164,096,057.16 14,452,368.67 149,643,688.49
Processing
8,955,036.59 8,955,036.59 3,895,184.01 3,895,184.01
products
118
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Stock goods 377,999,151.32 68,425,166.10 309,573,985.22 360,461,266.75 74,247,420.48 286,213,846.27
Total 592,309,804.47 77,146,268.90 515,163,535.57 528,452,507.92 88,699,789.15 439,752,718.77
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
Increase Decrease
Year-beginning
Items Reverse or Year-end balance
balance Withdrawal Other Other
write-off
Raw materials 14,452,368.67 2,995,690.34 8,726,956.21 8,721,102.80
Processing
74,247,420.48 18,998,617.05 24,820,871.43 68,425,166.10
products
Stock goods 88,699,789.15 21,994,307.39 33,547,827.64 77,146,268.90
Total
(3) Description of The closing balance of inventories contain the amount of borrowing costs capitalized
Not applicable
(4) Completed unsettled assets formed from the construction contact at the period-end
Not applicable
10.Contact assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the current period
Not applicable
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
Not applicable
119
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
13. Other current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Year-end balance Year-beginning balance
After the deduction of input VAT 89,787,160.89 99,797,959.30
Total 89,787,160.89 99,797,959.30
Other notes：Nil
14.Creditor's right investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Not applicable
17. Long-term equity investment
In RMB
120
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Increase /decrease
Closing
Profits
and losses Cash Withdraw balance
Opening Additiona Decrease on Other Closing of
bonus or al of
Investees investmen Changes
balance l in comprehe balance impairme
ts in other profits impairme Other
investmen investmen nsive
Recogniz equity announce nt nt
t t
ed under income
the equity d to issue provision provision
method
I. Joint ventures
Shenzhen
Haohao
5,641,139 637,149.7 2,000,000 4,278,289
Property
.93 2 .00 .65
Leasing
Co., Ltd.
Anhui
Huapeng 11,784,62 -912,673. 10,871,95
Textile 6.51 03 3.48
Co.,Ltd.
Shenzhen
Guanhua
65,503,36 -520,438. 67,584,49 132,567,4
Printing 0.00
0.10 51 7.83 19.42
& Dyeing
Co., Ltd.
17,425,76 65,503,36 -795,961. 2,000,000 67,584,49 147,717,6
Subtotal
6.44 0.10 83 .00 7.83 62.55
2. Affiliated Company
Shenzhen
Changlian
fa 2,234,057 2,316,173
82,115.91
Printing .19 .10
& dyeing
Company
Jordan
2,363,614 -202,853. 674,303.1 2,835,064
Garment
.70 11 7 .76
Factory
Hongkon
g Yehui
10,928,64 -197,358. 132,938.3 10,864,22
Internatio
7.33 53 7 7.17
nal Co.,
Ltd.
121
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
15,526,31 -318,095. 807,241.5 16,015,46
Subtotal
9.22 72 4 5.03
32,952,08 65,503,36 -1,114,05 807,241.5 2,000,000 67,584,49 163,733,1
Total
5.66 0.10 7.55 4 .00 7.83 27.58
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Fuao auto parts co., Ltd. 6,444,721.42 5,119,896.46
Shenzhen Guanhua Printing & Dyeing Co.,
432,981.70
Ltd
Union Development Group Co., Ltd. 152,493,600.00 152,493,600.00
Shenzhen Xiangjiang Trade Co., Ltd. 1,559,890.79 1,559,890.79
Shenzhen Xinfang Knitting Co., Ltd. 2,227,903.00 2,227,903.00
Shenzhen Dailishi Underwear Co., Ltd. 12,315,939.61 12,315,939.61
Shenzhen South Textile Co., Ltd. 13,464,991.17 13,464,991.17
Shenzhen Xieli Auto Co., Ltd. 25,760,086.27 25,760,086.27
Changxing Junying Investment Partnership 28,500,000.00 28,500,000.00
Total 242,767,132.26 241,875,289.00
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for being
Amount of other measured at fair Reasons for other
comprehensive value and whose comprehensive
Recognized Accumulating Accumulating
Name income changes are income
dividend income income losses
transferred to included in other transferred to
retained earnings comprehensive retained earning
income
Fuao auto parts Long-term
739,299.75 2,064,124.71
co., Ltd. holding
Union
Long-term
Development 20,244,553.13 170,138,153.13
holding
Group Co., Ltd.
Shenzhen
Long-term
Xiangjiang Trade 1,087,413.21 2,487,304.00
holding
Co., Ltd.
Shenzhen 200,000.00 1,903,903.00 Long-term
122
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Xinfang Knitting holding
Co., Ltd.
Shenzhen
Dailishi Long-term
500,000.00 10,256,083.35
Underwear Co., holding
Ltd.
Shenzhen South Long-term
13,171,837.71 24,604,164.08
Textile Co., Ltd. holding
Shenzhen Xieli Long-term
1,810,409.14 23,326,789.97
Auto Co., Ltd. holding
Changxing
Junying Long-term
2,150,943.40 2,150,943.40
Investment holding
Partnership
19.Other non-current assets
Not applicable
20. Investment property
(1) Investment property adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
309,234,260.74 309,234,260.74
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
52,051,000.00 52,051,000.00
the period
123
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
（1）Dispose
（2）Other out 52,051,000.00 52,051,000.00
4. Balance at period-end 257,183,260.74 257,183,260.74
II.Accumulated
amortization
1.Opening balance 141,236,318.76 141,236,318.76
2.Increased amount of
3,872,485.12 3,872,485.12
the period
(1) Withdrawal 3,872,485.12 3,872,485.12
3.Decreased amount of
4,120,704.04 4,120,704.04
the period
（1）Dispose
（2）Other out 4,120,704.04 4,120,704.04
4. Balance at
140,988,099.84 140,988,099.84
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
116,195,160.90 116,195,160.90
-end
2.Book value at
167,997,941.98 167,997,941.98
period-beginning
124
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
Not applicable
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 934,227,780.28 987,876,247.55
Liquidation of fixed assets 8,472.84
Total 934,236,253.12 987,876,247.55
(1) List of long-term accounts receivable
In RMB
Machinery
Items Houses & buildings Transportations Other equipment Total
equipment
I. Original price
1.Opening balance 548,584,026.60 1,011,061,597.26 9,997,715.53 30,466,523.80 1,600,109,863.19
2.Increased amount
254,545.45 1,253,362.07 303,879.37 733,738.03 2,545,524.92
of the period
(1) Purchase 254,545.45 55,172.42 140,143.83 449,861.70
(2) Transferred fro
m construction in pr 1,198,189.65 303,879.37 593,594.20 2,095,663.22
ogress
(3)Increased of
Enterprise
Combination
3.Decreased amount
1,488,857.00 114,940.62 1,603,797.62
of the period
（1）Disposal 1,488,857.00 114,940.62 1,603,797.62
4. Balance at 548,838,572.05 1,010,826,102.33 10,301,594.90 31,085,321.21 1,601,051,590.49
125
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
period-end
II. Accumulated
depreciation
1.Opening balance 130,575,792.68 459,920,510.02 3,719,028.75 17,008,251.34 611,223,582.79
2.Increased amount
9,785,532.00 44,646,776.21 353,654.09 1,315,398.38 56,101,360.68
of the period
(1) Withdrawal 9,785,532.00 44,646,776.21 353,654.09 1,315,398.38 56,101,360.68
3.Decrease in the
1,419,244.29 91,921.82 1,511,166.11
reporting period
（1）Disposal 1,419,244.29 91,921.82 1,511,166.11
4.Closing balance 140,361,324.68 503,148,041.94 4,072,682.84 18,231,727.90 665,813,777.36
III. Impairment
provision
1.Opening balance 1,004,032.85 6,000.00 1,010,032.85
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 1,004,032.85 6,000.00 1,010,032.85
IV. Book value
1.Book value of the
407,473,214.52 507,678,060.39 6,228,912.06 12,847,593.31 934,227,780.28
period-end
2.Book value of the
417,004,201.07 551,141,087.24 6,278,686.78 13,452,272.46 987,876,247.55
period-begin
126
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(2) Fixed assets temporarily idled
Not applicable
(3) Fixed assets rented by finance leases
Not applicable
(4) Fixed assets leased in the operating leases
Not applicable
(5) Fixed assets without certificate of title completed
Not applicable
（6）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Scrap cleaning of Composite Printer 8,472.84 0.00
Total 8,472.84
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 94,993,015.59 15,621,286.64
Total 94,993,015.59 15,621,286.64
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
Industrialization
project of 85,275,840.93 85,275,840.93 9,080,815.92 9,080,815.92
polaroid for super
127
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
large size TV
Other 9,717,174.66 9,717,174.66 6,540,470.72 6,540,470.72
Total 94,993,015.59 94,993,015.59 15,621,286.64 15,621,286.64
（2）Changes of significant construction in progress
In RMB
Includin
Capitalis g：
Amount Transferr ation of Current Capitalis
Increase Balance
at year ed to Other Proporti Progress interest amount ation of Source
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest of funds
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
2500mm
width 1,959,50 9,080,81 76,195,0 85,275,8
Other
producti 0,000.00 5.92 25.01 40.93
on line
1,959,50 9,080,81 76,195,0 85,275,8
Total -- -- --
0,000.00 5.92 25.01 40.93
（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
Not applicable
128
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
26. Intangible assets
(1) Information
In RMB
Non-proprietary
Items Land use right Patent right Software Total
technology
I. Original price
1. Balance at period-beginning 48,822,064.61 11,825,200.00 2,936,607.54 63,583,872.15
2.Increase in the current period
(1) Purchase
（2）Internal R & D
（3）Increased of Enterprise
Combination
3.Decreased amount of the period 563,825.61 563,825.61
（1）Disposal
（2）Other 563,825.61 563,825.61
4. Balance at period-end 48,258,239.00 11,825,200.00 2,936,607.54 63,020,046.54
II.Accumulated amortization
1. Balance at period-beginning 12,243,972.52 11,825,200.00 1,633,883.78 25,703,056.30
2. Increase in the current period 463,884.36 225,607.57 689,491.93
(1) Withdrawal 463,884.36 225,607.57 689,491.93
3.Decreased amount of the period 563,825.61 563,825.61
（1）Disposal
（2）Other 563,825.61 563,825.61
4. Balance at period-end 12,144,031.27 11,825,200.00 1,859,491.35 25,828,722.62
III. Impairment provision
1. Balance at period-beginning
2. Increase in the current period
(1) Withdrawal
3.Decreased amount of the period
（1）Disposal
129
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
4. Balance at period-end
4. Book value
1.Book value at period -end 36,114,207.73 1,077,116.19 37,191,323.92
2.Book value at period-beginning 36,578,092.09 1,302,723.76 37,880,815.85
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Not applicable
27. R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investees or the events formed goodwill Opening balance Increase Decrease Closing balance
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 2,167,341.21
82,246.61 82,246.61
Shenzhen Shenfang Import and Export Co., Ltd.
9,614,758.55 9,614,758.55
Shenzhen Shengbo Optoelectronic Technology Co., Ltd
Total 11,864,346.37 11,864,346.37
（2）Impairment of goodwill
In RMB
Balance in Increased at .Decreased at
Investee Balance in year-end
year-begin this period this period
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and Export Co., Ltd. 82,246.61 82,246.61
9,614,758.55 9,614,758.55
Shenzhen Shengbo Optoelectronic Technology Co., Ltd
Total 11,864,346.37 11,864,346.37
130
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
29. Long term amortize expenses
In RMB
Balance in Increase in this Amortized expenses
Items Other loss Balance in year-end
year-begin period
Renovation fee 985,691.64 1,394,907.13 290,327.30 0.00 2,090,271.47
Other 500,517.39 44,606.09 60,251.68 484,871.80
Total 1,486,209.03 1,439,513.22 350,578.98 2,575,143.27
30. 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
18,727,722.20 4,681,930.55 18,197,325.09 4,549,331.27
reserves
Unattained internal sales
2,546,979.00 382,046.85 2,591,536.27 388,730.44
profits
Temporary difference
formed by the interest of
571,844.26 142,961.06
share incentive
repurchase
Changes in fair value of
available for sale 2,495,876.89 623,969.22 3,820,701.85 955,175.46
financial assets
Total 23,770,578.09 5,687,946.62 25,181,407.47 6,036,198.23
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of
investments in other 264,086,001.96 66,021,500.49 196,501,504.12 49,125,376.03
equity instruments
131
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Total 264,086,001.96 66,021,500.49 196,501,504.12 49,125,376.03
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
5,687,946.62 6,036,198.23
assets
Deferred income tax
66,021,500.49 49,125,376.03
liabilities
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 114,494,850.00 128,283,915.49
Deductible loss 606,745,605.60 562,435,574.75
Total 721,240,455.60 690,719,490.24
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2020 703,241.36 703,241.36
2021 3,880,135.73 3,880,135.73
2023 129,226,944.33 129,226,944.33
2024 148,095,898.11 148,095,898.11
2025 83,287,153.64 83,287,153.64
2026 120,820,767.06 120,820,767.06
2028 76,421,434.52 76,421,434.52
2029 44,310,030.85
Total 606,745,605.60 562,435,574.75 --
31 .Other non-current assets
Whether implemented new revenue guidelines?
132
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
□ Yes √No
In RMB
Items Balance in year-end Balance in year-begin
Advance payment for equipment fund 148,843,296.00 152,688,087.18
Dvance payment for technical services 176,764,571.83 176,764,571.83
Total 325,607,867.83 329,452,659.01
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beginning
Credit borrowings 50,837,730.76 411,522,111.40
Total 50,837,730.76 411,522,111.40
(2) Situation of Overdue Outstanding Short-Term Borrowing
Not applicable
33. Transactional financial liabilities
Not applicable
34. Derivative financial liability
Not applicable
35.Notes payable
Not applicable
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 245,132,120.82 177,140,118.37
133
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
1-2 years 1,506,049.28 2,059,842.85
2-3 years 49,238.45 37,402.40
3-4 years 37,402.40 35,075.05
4-5 years 270,552.23 281,166.48
Over 5 years 731,537.05 685,847.75
Total 247,726,900.23 180,239,452.90
（2）Significant accounts payable that aged over one year
Not applicable
37.Advance account
Whether implemented new revenue guidelines?
□ Yes √No
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 24,126,360.37 119,293,518.44
1-2 years 432,970.46 560,077.61
2-3 years 227,835.39 210,330.74
3-4 years
4-5 years
Over 5 years 639,024.58 639,024.58
Total 25,426,190.80 120,702,951.37
(2) Significant advance from customers aging over one year
Not applicable
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
Not applicable
38.Contract liabilities
Not applicable
39. Payroll payable
(1) List of Payroll payable
134
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short –term wages 32,506,267.08 70,261,369.72 78,386,426.73 24,381,210.07
II. Welfare after waving
of position-fixed 5,803,834.30 5,803,834.30
provision scheme
Total 32,506,267.08 76,065,204.02 84,190,261.03 24,381,210.07
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period decrease in this period Balance in year-end
1.Wages, bonuses,
30,794,253.21 60,420,574.96 68,645,717.86 22,569,110.31
allowances and subsidies
2.Employee welfare 4,815,414.94 4,815,414.94
3. Social insurance
1,044,657.16 1,044,657.16
premiums
Including：Medical
836,870.97 836,870.97
insurance
Work injury insurance 88,159.91 88,159.91
Maternity insurance 119,626.28 119,626.28
4. Public reserves for
2,577,398.43 2,577,398.43
housing
5.Union funds and staff
1,712,013.87 1,403,324.23 1,303,238.34 1,812,099.76
education fee
Total 32,506,267.08 70,261,369.72 78,386,426.73 24,381,210.07
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period decrease in this period Balance in year-end
1. Basic old-age
4,884,610.17 4,884,610.17
insurance premiums
2.Unemployment
92,168.12 92,168.12
insurance
3. Annuity payment 827,056.01 827,056.01
Total 5,803,834.30 5,803,834.30
135
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
40.Tax Payable
In RMB
Items At end of term At beginning of term
VAT 443,530.70 793,392.58
Enterprise Income tax 7,261,559.44 6,198,704.39
Individual Income tax 383,031.06 160,823.58
City Construction tax 14,901.49 54,516.12
House property tax 2,954,221.68 204,941.07
Educational surtax 9,529.64 37,825.82
Land VAT 5,271,919.22
Other 166,762.09 294,925.43
Total 16,505,455.32 7,745,128.99
41.Other payable
In RMB
Items At end of term At beginning of term
Interest payable 435,029.66 39,044,044.39
Other 170,702,934.76 189,971,235.59
Total 171,137,964.42 229,015,279.98
（1) Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by
37,220,662.08
installments.
Pay the interest for short-term loans by
435,029.66 1,823,382.31
installments.
Total 435,029.66 39,044,044.39
(2) Dividends payable
Not applicable
136
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 55,299,112.56 62,574,657.07
Unit account 53,231,384.04 53,935,705.78
Deposit 25,872,902.45 25,481,743.17
Restrictive stock repurchase
16,139,003.40 27,802,523.26
obligation
Other 20,160,532.31 20,176,606.31
Total 170,702,934.76 189,971,235.59
42. Liabilities classified as holding for sale
Not applicable
43. Non-current liabilities due within 1 year
In RMB
Items At end of term At beginning of term
Long-term loans due within 1 year 0.00 40,000,000.00
Total 40,000,000.00
44.Other current liabilities
Whether implemented new revenue guidelines?
□ Yes √No
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items At end of term At beginning of term
Credit borrowings 0.00 40,000,000.00
Add：Long-term term borrowings
0.00 -40,000,000.00
due within 1 year
137
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
46.Bond payable
（1）Bond payable
Not applicable
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
Not applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable
（4）Other financial instruments that are classified as financial liabilities
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
Not applicable
50. Estimates liabilities
Whether implemented new revenue guidelines?
□ Yes √No
51.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89
Total 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89 --
Details of government subsidies：
In RMB
138
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Amount Amount
transferr of cost Asset-re
New subsidy Other income Other
Beginning of ed to deducted latedori
Items in current recorded in the chan End of term
term non-oper in the ncome-r
period current period ges
ational current elated
income period
Related
Textile special funds 571,428.57 71,428.58 499,999.99
to assets
High-tech Industrialization Related
200,000.00 100,000.00 100,000.00
demonstration projects to assets
National grant funds for new Related
1,000,000.00 500,000.00 500,000.00
flat panel display industry to assets
Grant funds for TFT-LCD Related
4,333,333.34 649,999.97 3,683,333.37
polarizer industry project to assets
Grant funds for TFT-LCD
Related
polarizer narrow line (line 5) 2,000,000.00 250,000.02 0.00 1,749,999.98
to assets
project
Purchase of imported Related
677,016.78 87,545.09 589,471.69
equipment and technology to assets
Innovation and venture capital Related
200,000.00 25,000.04 174,999.96
for TFT-LCD polarier I project to assets
Shenzhen polarizing materials
and Technology Engineering Related
312,500.00 25,000.02 287,499.98
Laboratory innovation venture to assets
capital
Shenzzhen Engineering
Related
laboratory polarizing material 3,125,000.00 250,000.02 2,874,999.98
to assets
and technical engineering
Capital funding for Technology Related
1,875,000.00 150,000.00 1,725,000.00
Center to assets
Subsidy funds to support the int
Related
roduction of advanced technolo 57,552.41 7,194.00 50,358.41
to assets
gy
Local supporting funds for
Related
TFT-LCD polarizer Phase II 14,250,000.00 750,000.00 13,500,000.00
to assets
Project (line 6)
State subsidy for TFT-LCD
Related
polarizer Phase II Project (line 9,500,000.00 500,000.00 9,000,000.00
to assets
6)
Innovation and venture capital
475,000.00 25,000.00 450,000.00 Related
for TFT-LCD polarizer Phase II
139
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Project (line 6) to assets
key technology
research and development Related
4,125,000.00 250,000.02 3,874,999.98
projects of optical to assets
compensation film for polarizer
Strategic industries
Related
Development fund of 23,750,000.00 1,250,000.00 22,500,000.00
to assets
Guangdong Province
Grants of Purchase equipment
Related
of TFT-LCD polarizing film 28,500,000.00 1,500,000.00 27,000,000.00
to assets
phase II project
Energy saving transformation Related
86,458.56 86,458.56
grant funds to assets
Old elevator renovation fund Related
1,147,008.67 55,877.85 1,091,130.82
subsidies to assets
Polarization Industrialization
Project for Super Large-sized Related
30,000,000.00 30,000,000.00
TVs (Line 7) Central Budget to assets
Investment
Research & development
subsidy for key technologies of Related
2,000,000.00 2,000,000.00
ultra-thin IPS polarizer for to assets
smart phone terminals
Finance committee of
Shenzhen municipality (R&D
of key technology of Related
5,000,000.00 5,000,000.00
high-performance polarizer for to assets
large size display panel of
2018N007)
The ministry of industry and
information technology, the
ministry of finance, the circ Related
4,806,400.00 2,231,202.83 2,575,197.17
first batch of new material to assets
application insurance
compensation
Compensation for land
Related
requisition by Longhua Street 103,317.00 0.00 103,317.00
to assets
Office (factory wall)
Total 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89
Other notes：
(1).According to the "Notice on National Development and Reform Commission to the General Office of the
140
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
textile project management of the special funds" (Faigaiban [2006]2841), on December 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
RMB71,428.58, the ending balance of uncompleted amortization is RMB499,999.99 .
(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 RMB100,000.00 and the balance amount of unfinished final amortization is RMB100,000.00.
(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 non-operating income in current period is RMB500,000.00, the balance amount of
unfinished final amortization is RMB500,000.00.
(4) 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 non-operating income in current period is RMB649,999.97. and the balance
amount of unfinished final amortization is RMB 3,683,333.37.
(5) According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet,
141
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 non-operating income in current period is RMB250,000.02 and the
balance amount of unfinished final amortization is RMB1,749,999.98.
(6) 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.The non-operating income in current period is RMB87,545.09 and the
balance amount of unfinished final amortization is RMB 589,471.69.
(7) On December 2013，The company received the funds for innovation and entrepreneurship 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 non-operating income in current period is RMB25,000.04 and the balance amount of
unfinished final amortization is RMB174,999.96 .
(8) On December 2013，The company received the funds for innovation and entrepreneurship 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 non-operating income in current period is RMB25,000.02 and the balance amount of
unfinished final amortization is RMB 287,499.98 .
(9) 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
(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 non-operating income in current period is RMB250,000.02 and the
balance amount of unfinished final amortization is RMB 2,874,999.98 .
(10) 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
SAPO 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 non-operating
income in current period is RMB150,000.00 and the balance amount of unfinished final amortization is RMB
1,725,000.00.
142
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(11)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 non-operating income in current period is
RMB7,194.00 and the balance amount of unfinished final amortization is RMB50,358.41.
(12)According to the "Shenzhen Municipal Development and Reform Commission Reply for SAPO 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. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed
assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 750,000.00 was
included into other incomes in the current period and the ending outstanding balance was RMB 13,500,000.00 .
(13)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. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state
and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets,
RMB 500,000.00 was included into other incomes in the current period and the ending outstanding balance was
RMB 9,000,000.00.
(14) 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. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed
assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 25,000.00 was
included into other incomes in the current period and the ending outstanding balance was RMB450,000.00.
(14)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 Committee. The company has reached the expected date of use of the assets., 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.
(16)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 RMB20 million of the pilot project fund( period II project of TFT-LCD
polarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industries
and the future development of industrial matching funds, TFT-LCD polarizer Phase II project (Line 6) hit the
expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in
depreciation of relevant assets, RMB 1,250,000.00 was included into other incomes in the current period and the
ending outstanding balance was RMB 22,500,000.00.
143
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(17). 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. TFT-LCD polarizer Phase II project (Line 6) hit the expected
available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of
relevant assets, RMB 1,500,000.00 was included into other incomes in the current period and the ending
outstanding balance was RMB 27,000,000.00.
(18) 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 Other income was
RMB 0.00 at the current period, the ending balance without amortization was RMB 86,458.56.
(19). In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the company
received 325,380.00 yuan for the old elevator upgrade subsidy in 2018, the Other income was RMB 55,877.85 at the
current period, the ending balance without amortization was RMB 1,091,130.82.
(20) According to the Notice of the Ministry of Industry and Information Technology of the National
Development and Reform Commission for Releasing the Central Budgetary Investment Plan of the 2017 of the
Technical Transformation of the Electronic Information Industry (NDRC Investment {2017} No. 1649), the
company received oversize TV for use in November 2017. In November 2017, the company received an central
budgetary investment of RMB 30,000,000.00 of the oversized TV polarizer industry project. The company shall
transfer the deferred income to the current profit or loss for the period of depreciation from the date when the
relevant assets are ready for their intended use.
(21) In accordance with the development plans and policies of Shenzhen Municipality for Strategic emerging
Industries, the Management Measures of Shenzhen City on Funds for Scientific and Technological Research and
Development, the Management Measures of Shenzhen City on Science and Technology Plan Project and other
relevant documents, Shenzhen Science and Technology Innovation Commission and SAPO completed the
development of the key technology of the 20170535 ultra-thin polarizer used in IPS smart phone terminal in the
Shenzhen Science and Technology Plan issued by SFG [2017] No. 1447 document. In February 2018, the
company received funding from Shenzhen Science and Technology Innovation Commission of 2,000,000 yuan
for R & D. The company will transfer the deferred income to the current profit and loss according to the
depreciation period from the date when the relevant assets reach the expected usable status.
(22). According to Measures for Management of Science and Technology Research & Development Funds in
Shenzhen, Measures for Management of Projects in Shenzhen Municipal Science and Technology Program and
other documents concerned, SAPO and Shenzhen Science and Technology Innovation Committee entered into a
Contract of Projects in Shenzhen Municipal Science and Technology Program through consultation to complete
development of key techniques for high-performance polarizers for 2018N007 jumbo display panels in the
program delivered in Shen Fa Gai [2018] No.324 document. The Company was granted with a financial subsidy
of RMB 5,000,000.00 this year. The Company amortized and transferred the deferred income into the current
profit and loss by period of depreciation after relevant assets hit the expected available state.
(23). Compliance with the document spirit of the Notice of Ministry of Industry and Information Technology,
Ministry of Finance and China Insurance Regulatory Commission on Piloting an Insurance Compensation
144
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Mechanism for the First Batch of Key New Materials (Gong Xin Bu Lian Yuan [2017] No.222 document). In
December 2018, the Company received a relevant premium subsidy of RMB 4,806,400.00 from the Ministry of
Industry, In the current period, the sales expenses will be reduced of RMB 2,231,202.83, the ending balance
without amortization was RMB 2,575,197.17.
24. During the reporting period, Longhua district subdistrict office received RMB103,317.00 of compensation
fund for land requisition, which had not been amortized by the end of the reporting period.
52. Other non-current liabilities
Whether implemented new revenue guidelines?
□ Yes √No
53.Stock capital
In RMB
Changed（+，-）
Year-beginning Capitalization Balance in
Issuance of
balance Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
511,274,149.00 511,274,149.00
shares
54. Other equity instruments
Not applicable
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 1,848,960,987.54 1,848,960,987.54
Other 16,755,996.09 16,755,996.09
Total 1,865,716,983.63 1,865,716,983.63
56.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
145
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Treasurpy stock-A share 27,230,679.00 27,230,679.00
Total 27,230,679.00 27,230,679.00
57. Other comprehensive income
In RMB
Amount of current period
Less：
Less：Prior
Amount
period
transferred
included
into profit
in other After-tax
Amount and loss in Less： After-tax
Year-beginn composite attribute to Year-end
Items incurred the current Income attribute to
ing balance income minority balance
before period that tax the parent
transfer to shareholde
income tax recognied expenses company
retained r
into other
income in
comprehensi
the current
ve income in
period
prior period
1. Other comprehensive income
147,376,128 51,249,01 51,249,01 198,625,
that cannot be reclassified in the 0.00
.10 0.40 0.40 138.50
loss and gain in the future
Changes in fair value of
51,249,01 51,249,01 51,249,0
investments in other equity
0.40 0.40 10.40
instruments
Accounting policy 147,376,128 147,376,
adjustment .10 128.10
2.Other comprehensive income
1,339,208.4 807,241.5 807,241.5 2,146,44
reclassifiable to profit or loss in
1 4 4 9.95
subsequent periods
Translation differences of
1,339,208.4 807,241.5 807,241.5 2,146,44
financial statements
1 4 4 9.95
denominated
Total of other comprehensive 148,715,336 52,056,25 52,056,25 200,771,
income .51 1.94 1.94 588.45
58. Special reserves
Not applicable
146
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 80,004,803.23 80,004,803.23
Total 80,004,803.23 80,004,803.23
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
-57,774,473.41 -32,266,087.44
beginning
Retained earnings after adjustments at the year
-57,774,473.41 -32,266,087.44
end
Add: Net profit attributable to owners of the
7,832,287.98 -22,980,624.93
Company for the period
Less: Appropriation to statutory surplus reserve 2,527,761.04
Retained profits at the period end -49,942,185.43 -57,774,473.41
As regards the details of adjusted the beginning undistributed profits
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1,006,315,551.63 938,514,710.11 471,407,964.26 412,583,996.50
Other business 2,547,743.87 2,072,800.62 2,854,444.31 2,508,961.83
Total 1,008,863,295.50 940,587,510.73 474,262,408.57 415,092,958.33
Whether implemented new revenue guidelines?
□ Yes √No
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 290,794.73 293,239.29
Education surcharge 212,086.40 210,850.54
147
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Property tax 2,826,536.51 2,891,819.92
Land use tax 98,031.18 176,423.79
vehicle and vessel usage tax 3,960.00 3,960.00
Stamp tax 458,231.50 260,786.33
Other 7,856.46 3,476.25
Total 3,897,496.78 3,840,556.12
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 1,605,556.15 1,477,791.73
Transportation changes 2,580,690.13 1,402,849.04
Exhibition fee 131,576.37 124,705.56
Business expenses 187,361.86 214,533.49
Samples and product loss 359,519.68 179,001.34
Property insurance 2,231,202.83 0.00
Other 273,897.50 381,530.37
Total 7,369,804.52 3,780,411.53
Other notes：The year-on-year increase in property insurance was mainly due to the purchase of "comprehensive
insurance for the first batch of application of key new materials" during SAPO reporting period.
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 22,919,081.61 23,605,838.32
Depreciation of fixed assets 6,383,207.78 4,788,853.45
Water and electricity 1,281,518.80 2,017,209.50
Intangible assets amortization 689,491.93 648,185.46
Travel expenses 738,353.90 512,976.10
Office expenses 342,201.90 515,020.20
Business entertainment 465,456.54 485,191.77
Lawsuit expenses 196,500.00 0.00
Repair charge 1,031,667.72 1,804,835.86
148
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Property insurance 102,845.11 123,836.06
Low consumables amortization 18,322.00 9,731.00
Board fees 1,341.50 54,119.00
Agency expenses 4,393,993.81 1,639,670.22
Other 4,337,897.08 5,033,652.79
Tax 42,901,879.68 41,239,119.73
Other notes：
1. The increase in agency fees is mainly due to a number of agency fees incurred in the first half of the year, such
as capital increase and stock expansion of subsidiaries, assets verification and asset evaluation, and attorney fees
for land ownership confirmation of Guanhua Building.
2. The increase in legal fees is due to the legal service fees for the credit enhancement and extension of the trust
project and trade project of the subsidiary SAPO.
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Wage 6,498,554.63 5,909,039.37
Material 10,185,129.50 13,348,329.15
Depreciation 1,371,404.00 1,230,035.43
Fuel & Power 763,053.12 413,784.82
Travel expenses 201,113.88 165,089.52
Other 153,133.07 122,821.53
Total 19,172,388.20 21,189,099.82
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 3,783,883.97 3,428,083.94
Interest income -15,744,104.66 -13,277,267.58
Exchange loss 9,972,336.73 4,824,219.83
Fees and other 1,257,196.02 1,172,376.15
Total -730,687.94 -3,852,587.66
149
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 11,035,139.06 5,812,167.76
68. Investment income
In RMB
Items Amount of this period Amount of last period
Investment income from the disposal of
-1,114,057.55 616,945.67
long-term equity investment
Dividend income from investments in other
908,000.00
equity instruments during the holding period
Hold the investment income during from
574,774.15
available-for-sale financial assets
Trust income 0.00 27,360,990.33
Total -206,057.55 28,552,710.15
69.Net exposure hedging income
Not applicable
70. Gains on the changes in the fair value
Not applicable
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 310,848.71
Loss of bad accounts receivable 2,022,916.27
Total 2,333,764.98
72. Losses from asset impairment
Whether implemented new revenue guidelines?
□ Yes √Not
In RMB
150
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Items Amount of current period Amount of previous period
Losses on bad debt -278,909.76
Loss of inventory price -21,259,451.35 -17,115,422.28
Total -21,259,451.35 -17,394,332.04
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
Gains & losses on foreign investment in
12,301,144.92
fixed assets
Gains& losses on the disposal of fixed
-64,458.67
assets
Total 12,236,686.25
74. 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
Government Subsidy 55,009.21
Gains from disposal of
24,597.81
non-current assets
Return insurance settlement
4,033,846.00 4,033,846.00
income
Other 213,415.65 10,301.15 213,415.65
Total 4,247,261.65 89,905.17 4,247,261.65
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Issuing subsidies on
Items Reason Nature special current previous d/income
subject the current
subsidies period period -related
profit and
loss
Shenzhen
Relate to
Social Subsidy No No 55,009.21
income
Security
151
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Bureau
75.Non-current expenses
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Non-current asset Disposition
43,338.08
loss
Other 6,092.62 110,000.00 6,092.62
Total 6,092.62 153,338.08 6,092.62
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 9,599,442.08 5,972,581.36
Deferred income tax expense 173,565.75 -650,716.83
Total 9,773,007.83 5,321,864.53
(2)Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits 4,046,153.95
Income tax computed in accordance with the applicable tax rate 1,011,538.50
Effect of different tax rate applicable to the subsidiary Company 3,472,144.47
Influence of non taxable income 150,265.11
Impact of non-deductible costs, expenses and losses 19,450.97
Affect the use of deferred tax assets early unconfirmed
-88,607.93
deductible losses
The current period does not affect the deferred tax assets
5,208,216.71
recognized deductible temporary differences or deductible loss
Income tax expense 9,773,007.83
77. Other comprehensive income
Refer to the notes 57
152
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Government Subsidy 11,035,139.06 5,396,000.00
Bank deposit interest income and other 18,080,774.86 20,764,799.70
Total 29,115,913.92 26,160,799.70
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
R&D 11,302,429.57 15,280,060.45
Office Expense 445,468.55 515,020.20
Business fee 730,785.55 699,725.26
Travel expenses 1,023,309.74 632,243.41
Transportation fee 2,580,960.13 1,402,849.04
Agency Charge 4,580,993.81 1,639,670.22
Insurance expenses 2,334,047.94 123,836.06
Water and electricity 2,293,665.75 2,017,209.50
Rental fee 1,031,667.72 1,804,835.86
Refund deposit 4,906,692.00 61,102.53
Other 764,041.43 1,403,743.74
Total 31,994,062.19 25,580,296.27
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products,
620,264,450.94 1,903,828,974.66
principal and income
Total 620,264,450.94 1,903,828,974.66
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
153
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Structure deposit investment 985,495,790.87 1,830,500,000.00
Total 985,495,790.87 1,830,500,000.00
（5）Other cash received in relation to financing activities
Not applicable
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Restricted stock of stock repurchase
11,448,442.40 0
incentive object
Total 11,448,442.40 0
79. 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 -5,726,853.88 4,558,099.13
Add: Impairment loss provision of assets -14,622,141.27 -3,940,075.77
Depreciation of fixed assets, oil and gas
55,627,659.43 40,523,419.76
assets and consumable biological assets
Amortization of intangible assets 689,491.93 620,162.74
Amortization of Long-term deferred
350,578.98 155,136.82
expenses
Loss on disposal of fixed assets, intangible
-12,236,686.25 43,338.08
assets and other long-term deferred assets
Financial expenses ("-" for income) -730,687.94 -3,852,587.66
Investments losses ("-" for gains) 206,057.55 -28,152,710.15
Decreases in the deferred income tax assets
348,251.61 -650,716.83
("-" for increases)
Decreases in inventories ("-" for increases) -63,857,296.55 -45,300,979.12
Decreases in operating receivables ("-" for 110,200,333.49 -78,431,655.56
154
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
increases)
Increases in operating receivables（"-" for
-46,422,344.75 -14,422,320.88
decreases）
Net cash flows from operating activities 23,826,362.35 -128,850,889.44
2 、 Significant investment and financing
activities involving no cash receipts and -- --
payments
3、Net change in cash and cash equivalents: -- --
Closing balance of cash 255,546,268.35 1,014,735,793.86
Less: Opening balance of cash 1,133,574,235.22 1,161,240,139.33
Net increase in cash and cash equivalents -878,027,966.87 -146,504,345.47
(2) Net Cash paid of obtaining the subsidiary
Not applicable
(3) Net Cash receive of disposal of the subsidiary
Not applicable
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 255,546,268.35 1,133,574,235.22
Including：Cash at hand 10,934.20 13,559.60
Demand bank deposit 257,097,913.26 1,133,556,630.43
Demand other monetary funds 4,052.27 4,045.19
III. Balance of cash and cash equivalents at
255,546,268.35 1,133,574,235.22
the period end
80. Note of statement of changes in the owner's equity
Not applicable
81. The assets with the ownership or use right restricted
Not applicable
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Items Closing foreign currency Exchange rate Closing convert to RMB
155
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
balance balance
Monetary funds -- --
Including：USD 1,271,180.24 6.87470 8,738,982.79
Euro
HKD 863,940.85 0.87970 760,008.77
Yen 993,624.00 0.063816 63,409.11
Account payable -- --
Including：USD 1,035,197.73 6.87470 7,116,673.85
Euro
HKD 278,280.00 0.87970 244,802.92
Yen
Long-term borrowing -- --
Including：USD
Euro
HKD
Other receivable
Including：USD 37,399.02 6.87470 257,107.04
HKD
Yen
Account payable
Including：USD 4,077,489.83 6.87470 28,031,519.34
HKD
Yen 1,443,783,619.98 0.063816 92,136,495.49
Other payable
Including：USD 812,419.50 6.87470 5,585,140.34
HKD 3,044.46 6.87470 2,667.56
Yen 38,255,692.33 0.063816 2,441,325.26
Euro 106,218.00 7.81700 830,306.11
Short-term borrowing
Including：USD 3,081,888.71 6.87470 21,187,060.31
HKD
Yen 464,627,530.00 0.063816 29,650,670.45
Interest payable
Including：USD 37,635.02 6.87470 258,729.47
156
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
HKD
Yen 2,762,632.97 0.063816 176,300.19
(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
83. Hedging
Not applicable
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount included in current
Items Amount Project
profit and loss
Textile special funds 2,000,000.00 Other income 71,428.58
High-tech Industrialization
2,000,000.00 Other income 100,000.00
demonstration projects
National grant fundsfor new flat
10,000,000.00 Other income 500,000.00
panel display industry
Grant funds for TFT-LCD
13,000,000.00 Other income 649,999.97
polarizer industry project
Grant funds for TFT-LCD
polarizer narrow line (line 5) 5,000,000.00 Other income 250,000.02
project
Purchase of imported
1,750,902.00 Other income 87,545.09
equipment and technology
Innovation and venture capital
500,000.00 Other income 25,000.04
for TFT-LCD polarier I project
Shenzhen polarizing materials
and Technology Engineering
500,000.00 Other income 25,000.02
Laboratory innovation venture
capital
Shenzzhen Engineering
laboratory polarizing material 5,000,000.00 Other income 250,000.02
and technical engineering
Capital funding for Technology
3,000,000.00 Other income 150,000.00
Center
157
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Subsidy funds to support the int
roduction of advanced technolo 143,881.00 Other income 7,194.00
gy
Local supporting funds for
TFT-LCD polarizer Phase II 15,000,000.00 Other income 750,000.00
Project (line 6)
State subsidy for TFT-LCD
polarizer Phase II Project (line 10,000,000.00 Other income 500,000.00
6)
Innovation and venture capital
for TFT-LCD polarizer Phase II 500,000.00 Other income 25,000.00
Project (line 6)
key technology
research and development
5,000,000.00 Other income 250,000.02
projects of optical
compensation film for polarizer
Strategic industries
Development fund of 5,000,000.00 Other income 1,250,000.00
Guangdong Province
Grants of Purchase equipment
of TFT-LCD polarizing film 30,000,000.00 Other income 1,500,000.00
phase II project
Old elevator renovation fund
325,380.00 Other income 55,877.85
subsidies
The ministry of industry and
information technology, the
ministry of finance, the circ first
4,806,400.00 Other income 2,231,202.83
batch of new material
application insurance
compensation
Compensation for land
requisition by Longhua Street 103,317.00 Other income 0.00
Office (factory wall)
Name: Industrialization Project
of Polarizer for Ultra Large Size 30,000,000.00 Other income 0.00
TV (Line 7)
Research & development
subsidy for key technologies of
2,000,000.00 Other income 0.00
ultra-thin IPS polarizer for
smart phone terminals
Finance committee of Shenzhen
5,000,000.00 Other income 0.00
municipality (R&D of key
158
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
technology of high-performance
polarizer for large size display
panel of 2018N007)
Shenzhen Standard Special
360,000.00 Other income 360,000.00
subsidy
Government subsidies related to
1,935,000.00 Other income 1,935,000.00
income
Electricity subsidy 61,890.62 Other income 61,890.62
Total 11,035,139.06
（2）Government subsidy return
□ Applicable √ Not applicable
Other notes：
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Not applicable
(2) Combined cost and goodwill
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities
of the acquiree at acquisition date or closing period of the merge
Not applicable
159
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(6) Other notes:
Nil
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Not applicable
(2) Combination cost
Not applicable
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
Not applicable
3. Counter purchase
Not applicable
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
6.Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
160
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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 60.00% Establish
Shenzhen Shenzhen
& export Co., and export
Ltd. business
Shengtou Establish
(Hongkong) Production and 100%
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
Ophotoelectric 40.00% -13,559,141.86 0.00 1,072,348,399.88
Technology Co., Ltd
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Subsidia
Current Non-curr Total Current Non-curr Total Current Non-curr Total Current Non-curr Total
ries
assets ent assets liabilities ent liabilities assets ent assets liabilities ent liabilities
161
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
assets Liabilitie assets Liabilitie
s s
Shenzhe
n
Shengbo
Ophotoel 1,769,42 1,386,31 3,155,73 369,764, 127,739, 497,503, 2,309,72 1,362,86 3,672,59 843,110, 136,186, 979,297,
ectric 1,245.90 0,959.94 2,205.84 378.24 177.53 555.77 7,042.47 8,246.21 5,288.68 812.37 802.53 614.90
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
893,168,312. -35,069,023.7 -35,069,023.7 73,481,662.8 392,382,938. -13,141,819.5 -13,141,819.5 -123,066,997.
Ophotoelectri
79 1 1 6 55 9 9 41
c Technology
Co., Ltd
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Not applicable
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Not applicable
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
Not applicable
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
Not applicable
162
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding Ratio (%) The accounting
Name of Main Places of Registration Nature of treatment of
Subsidiary Operation Place Business direct indirect investment in
associates
Shenzhen Haohao
Property Leasing Shenzhen Shenzhen Property leasing 50.00% Equity method
Co., Ltd.
Shenzhen
Changlianfa
Shenzhen Shenzhen Property leasing 40.25% Equity method
Printing and
dyeing Company
Jordan Garment
Jordan Jordan Manufacturing 35.00% Equity method
Factory
Yehui
International Co., Hongkong Hongkong Manufacturing 22.75% Equity method
Ltd.
Anhui Huapeng
Anhui Anhui Manufacturing 50.00% Equity method
Textile Co., Ltd.
Shenzhen
Printing & Shenzhen Shenzhen Property leasing 50.16% Equity method
Dyeing Co., Ltd.
（2）The Summarized Financial Information of Joint Ventures
Not applicable
（3）The Summarized Financial Information of Associated Enterprises
Not applicable
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2019 Opening balance/June 30, 2018
Joint venture： -- --
Total book value of the investment 17,425,766.44 17,425,766.44
163
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Total amount of the pro rata calculation of
-- --
the following items
-- Net profit -1,588,603.47 393,860.77
-- Total comprehensive income -1,588,603.47 393,860.77
Associated enterprise： -- --
Total book value of the investment 16,015,465.03 15,526,319.22
Total amount of the pro rata calculation of
-- --
the following items
--Net profit -1,243,075.64 223,084.90
--Other Comprehensive income 807,241.54 120,349.15
--Total comprehensive income -435,834.10 343,434.05
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investment
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
Not applicable
6.Other
Nil
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
164
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
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
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.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value
Items Fir value measurement
measurement items measurement items Total
items at level 1
at level 2 at level 3
I. Consistent fair value measurement -- -- -- --
165
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
1. Financial assets measured at fair value
760,000,000.00 760,000,000.00
through profit or loss
Financial assets measured at fair value through
242,767,132.26 242,767,132.26
changes in comprehensive income
Total of Consistent fair value measurement 1,002,767,132.20 1,002,767,132.20
II Inconsistent fair value measurement -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The input value at the first level is that the company can obtain unadjusted quotations of the same assets or
liabilities in the active market on the measurement date.
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
Registered The parent company The parent company of
Name Registered address Nature of the Company's the Company’s vote
capital
shareholding ratio ratio
Equity investment ,
Shenzhen 18/F, Investment
Real-estate
Investment Building, Shennan Road, 2,534,900.00 45.78% 48.94%
Development and
Holdings Co.,Ltd. Futian District, Shenzhen
Guarantee
2.Subsidiaries of the Company
Details refer to the Note IX-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3, Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relation of other Related parties with the company
Shenzhen Haohao Property Leasing Co., Ltd. Sharing Company
Shenzhen Changlianfa Printing and dyeing Company Sharing Company
Yehui International Co., Ltd. Sharing Company
Anhui Huapeng Textile Co., Ltd. Sharing Company
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
166
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Shenzhen Guanhua Printing & Dyeing Co., Ltd. Sharing Company
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
On the subsidiary Shenzhen Shengbo Optoelectronics Technology
Hangzhou Jinjiang Group Co., Ltd. Co., Ltd. has a significant impact on the actual control of the
shareholders controlled by the enterprise
Kunshan Zhiqimei Material Technology Co., Ltd. Sharing Company of Hangzhou Jinjiang Group Co., Ltd.
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Whether over the
Related party Content Current amount Approval trading limit Last amount
trading limit(Y/N)
Kunshan Zhiqimei
Material Purchasing
58,479,328.60 208,800,000.00 No 14,103,038.28
Technology Co., polarizer
Ltd.
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Kunshan Zhiqimei Material
Sales polarizer sheet 79,108,319.24 0.00
Technology Co., Ltd.
Shenzhen Tianma
Sales polarizer sheet 740,904.84 1,166,047.31
Microelectronics Co., Ltd.
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
167
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
(4) Related-party guarantee
Not applicable
(5) Inter-bank lending of capital of related parties：
Not applicable
(6) Related party asset transfer and debt restructuring
Not applicable
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Senior Excutive 3,136,527.00 2,643,194.00
(8) Other related transactions
In order to carry out TFT-LCD polarizer project construction, the company signed an entrusted loan contract
with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Branch of Ping An
Bank in 2010. The contract stipulates that Shenzhen Shenchao Science & Technology Investment Co., Ltd.
entrusts Shenzhen Jiangsu Building Branch of Ping An Bank to loan 200,000,000.00 yuan to the Company. The
term of the loan was 108 months from the date the first entrusted loan was issued to the company's account. The
entrusted loan interest rate was lowered by 2% based on the 5-year commercial loan interest rate announced and
issued by the People's Bank of China. In case of adjustments to the 5-year commercial loan interest rate of the
People's Bank of China, from the first day of the next month of the benchmark interest rate adjustment, the
entrusted loan interest rate will be lowered by two percentage points according to the adjusted 5-year commercial
loan interest rate. During the reporting period, all remaining principal and interest have been repaid, and the
company's loan balance is 0 yuan.
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
Shenzhen Tianma
Account receivable Microelectronics 473,735.18 23,686.76 894,474.64 44,723.73
Co., Ltd.
Account receivable Kunshan Zhiqimei 87,255,501.33 4,362,775.07 84,062,627.96 4,203,131.40
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Material Technology
Co., Ltd.
Other Account Anhui Huapeng
1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
receivable Textile Company
Other Account Shenzhen Dailishi
416,464.86 20,823.24
receivable Underwear Co., Ltd.
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Kunshan Zhiqimei Material Technology Co., Ltd. 29,280,982.97 17,405,753.46
Other payable Shenzhen Xinfang Knitting Co., Ltd. 244,789.85 244,789.85
Other payable Shenzhen Changlianfa Printing and dyeing Co., Ltd. 1,178,449.95 1,178,449.95
Other payable Shenzhen Changlianfa Printing and dyeing Co., Ltd. 3,554,489.85 4,454,489.85
Other payable Yehui International Co.,Ltd. 1,194,824.20 1,190,070.22
Other payable SAPO （Hongkong）Co., Ltd. 315,000.00 315,000.00
Interest payable Shenzhen Shenchao Technology Investment Co., Ltd. 0.00 37,220,662.08
Other payable Shenzhen Dailishi Underwear Co., Ltd. 85,599.94 0.00
7. Related party commitment
Not applicable
8.Other
Nil
XIII. Share payment
1. Overall situation of share payment
√ Applicable □Not applicable
In RMB
Total amount of various equity instruments granted by the company
0.00
during the current period
Total amount of various equity instruments that the company exercises
0.00
during the period
Total amount of various equity instruments that have expired in the 0.00
169
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
current period
The company issued 4,752,300 restricted stocks at the
end of the period, and the grant price was 5.73
yuan/share. Restrictions shall be lifted at the rate of
40%, 30%, and 30% respectively after 12 months, 24
months, and 36 months after the first transaction date of
The scope of executive price of the company’s outstanding share options
24 months after the completion of the registration. The
at the end of the period and the remaining term of the contract
period of validity of the entire plan shall not exceed 60
months from the date of granting the restricted stock to
the date on which the restricted stocks granted to the
incentive object are all released from restrictions on
sale or cancelled by repurchase.
The scope of executive price of the company’s other equity instruments at
0
the end of the period and the remaining term of the contract
Other notes
On December 14, 2017, the company's 3rd Extraordinary General Meeting of Shareholders in 2017 passed
the Proposal on ‘Shenzhen Textile (Group) Co., Ltd. 2017 Restricted Stock Incentive Plan (Draft) and Abstract’;
on December 14, 2017, the board of directors of the company reviewed and passed the Proposal on Adjusting the
List of Incentive Objects of Restricted Stock Incentive Plans and the Number of Equity Granted of 2017, and the
Proposal on Granting Restrictive Shares to Incentive Objects. On December 14, 2017, the company granted
4,752,300 restricted shares to the incentive object, the grant price was 5.73 yuan/share. Restrictions shall be lifted
at the rate of 40%, 30%, and 30% respectively after 12 months, 24 months, and 36 months after the first
transaction date of 24 months after the completion of the registration. The company's performance assessment for
the restricted shares granted each period is as follows:
Restriction lifting period Performance assessment goals
In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower than
the 75 fractiles level of the comparable listed companies in the same industry; the growth
The first restriction lifting rate of operating revenue in 2018 compared with 2016 is not less than 70%, and is not
period lower than the 75 fractiles level of comparable listed companies in the same industry; in
2018, the proportion of optical film business such as polarizers to operating revenue is no
less than 70%.
In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the
75 fractiles level of the comparable listed companies in the same industry; the growth rate
The second restriction
of operating revenue in 2019 compared with 2016 is not less than 130%, and is not lower
lifting period
than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the
proportion of optical film business such as polarizers to operating revenue is not less than
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
75%.
In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than
the 75 fractiles level of comparable listed companies in the same industry; the growth rate
The third restriction lifting of operating revenue in 2020 is not less than 200% compared to 2016, and is not lower than
period the 75 fractiles level of comparable listed companies in the same industry. In 2020, the
proportion of optical film business such as polarizers to operating revenue will be no less
than 80%.
Note: Earnings per share=net profit/total capital stock attributable to common shareholders of the Company
upon deduction of non-recurring profit and loss.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
Determination method of the fair value of equity instruments on the The closing price of the company's stock on grant date - grant
grant date price
On each balance sheet date of the waiting period, it is
determined based on the latest information such as the change
Determination basis of the number of vesting equity instruments
in the number of people that can be released from restrictions
and the completion of performance indicators
Equity-settled share-based payment is included in the accumulated
0.00
amount of capital reserve
Total amount of fees confirmed by equity-settled share-based
0.00
payments in the current period
Other notes
The earnings per share after deduction of non-recurring profit and loss was RMB -0.13/share in 2018, which
was lower than the RMB 0.07/share--the performance assessment target in the first period of lifting restrictions on
sales; besides, the Company's 2019 budget and 2019-2021 rolling operation plan show that the Company is not
expected to complete the performance assessment targets in the second period of lifting restrictions on sales and
third period of lifting restrictions on sales in 2019 and 2020.
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Not applicable
5.Other
Nil
171
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
Nil
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
Nil
3.Other
Nil
XV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
4. Notes of other significant events
Nil
XVI. Other significant events
Nil
172
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) n(%)
Accrual of bad debt
provision by single
item
Including：
Accrual of bad debt
594,006. 29,700.3 564,306.4 570,471.8
provision by 100.00% 5.00% 100.00% 28,523.59 5.00% 541,948.21
80 4 6 0
portfolio
Including：
594,006. 29,700.3 564,306.4 570,471.8
Total 100.00% 28,523.59 5.00% 541,948.21
80 4 6 0
Accrual of bad debt provision by portfolio:29,700.34 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 594,006.80 29,700.34 5.00%
Including：Subtotal within 1
594,006.80 29,700.34 5.00%
year
Total 594,006.80 29,700.34 --
Notes of the basis of recognizing the group: The combination of the ageing status of accounts receivable as a
credit risk feature.
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year 594,006.80
Including：Subtotal within 1 year 594,006.80
173
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Total 594,006.80
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Accrual of bad debt
provision by 28,523.59 1,176.75 29,700.34
portfolio:
Total 28,523.59 1,176.75 29,700.34
(3) The actual write-off accounts receivable
Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Name Closing balance Proportion % Balance of Bad debt
provision
Shenfang Building and 594,006.80 100% 29,700.34
Peripheral rent
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Interest receivable 6,737,221.93 4,974,799.47
Other accounts receivable 8,403,787.65 8,881,582.55
Total 15,141,009.58 13,856,382.02
174
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 537,095.34 884,141.92
Structure deposit 6,200,126.59 4,090,657.55
Total 6,737,221.93 4,974,799.47
2) Significant overdue interest
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Internal current account 8,575,600.00 8,578,542.00
Unit account 14,951,143.71 15,451,143.71
Other 35,200.01 35,200.01
Total 23,561,943.72 24,064,885.72
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
1,090,352.22 14,092,950.95 15,183,303.17
2019
Balance as at January 1,
—— —— —— ——
2019 in current
175
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Turn back in the current
25,147.10 25,147.10
period
Balance as at June 30 1,065,205.12 14,092,950.95 15,158,156.07
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 3,745,284.22
Including：Subtotal within 1 year 3,745,284.22
1-2 years 4,454,759.77
2-3 years 2,810,047.30
Over 3 years 12,551,852.43
Over 5 years 12,551,852.43
Total 23,561,943.72
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Accrual of bad debt
1,090,352.22 25,147.10 1,065,205.12
provision by portfolio
Accrual of bad debt
14,092,950.95 14,092,950.95
provision by single item
Total 15,183,303.17 25,147.10 15,158,156.07
The company's provision for bad debts of other receivables is based on the expected loss method, and the
credit loss of other receivables is expected throughout the duration. For other receivables with similar risk
characteristics, the company combines them according to aging status, and the expected credit loss rate
corresponding to aging is shown in this Section V, Important Accounting Policies and Other Receivables in
Accounting Estimates; At the end of the period, other receivables that have objective evidence of impairment are
individually tested for impairment, and impairment losses are recognized and provision for bad debts is made
according to the difference between the present value of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and provision for
bad debts are shown in the following table:
176
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Closing balance
Aging
Other account receivable Provision for bad debts Expected loss rate（%）
Within 1 year 3,745,284.22 187,264.21 5.00
1-2 years 4,454,759.77 445,475.98 10.00
2-3 years 1,010,047.30 303,014.19 30.00
Over 3 years 258,901.48 129,450.74 50.00
Total 9,468,992.77 1,065,205.12
(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected 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 5 years 48.34% 11,389,044.60
Internal current
Second 8,575,600.00 1-3 years 36.40% 912,800.00
account
Third Unit account 1,800,000.00 2-3 years 7.64% 1,800,000.00
Fourth Unit account 783,579.12 1-2 years 3.33% 61,916.94
Fifth Unit account 592,420.00 Over 5 years 2.51% 592,420.00
Total -- 23,140,643.72 -- 98.21% 14,756,181.54
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items
Book balance Provision for Book value Book balance Provision for Book value
177
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
impairment impairment
Investments in
1,968,806,395.91 16,582,629.30 1,952,223,766.61 1,980,806,395.91 16,582,629.30 1,964,223,766.61
subsidiaries
Investments in
associates and 163,733,127.58 163,733,127.58 32,952,085.66 32,952,085.66
joint ventures
Total 2,132,539,523.49 16,582,629.30 2,115,956,894.19 2,013,758,481.57 16,582,629.30 1,997,175,852.27
（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
Optoelectronic
1,910,247,781.94 1,910,247,781.94 14,415,288.09
Technology Co.,
Ltd.
Shenzhen Lisi
Industrial
8,073,388.25 8,073,388.25
Development Co.,
Ltd.
Shenzhen Beauty
Century Garment 28,700,058.79 12,000,000.00 16,700,058.79 2,167,341.21
Co., Ltd.
Shenzhen
15,489,351.08 15,489,351.08
Huaqiang Hotel
Shenfang Property
Management Co., 1,713,186.55 1,713,186.55
Ltd.
Total 1,964,223,766.61 12,000,000.00 1,952,223,766.61 16,582,629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
178
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
Shenzhen
Haohao
5,641,139 637,149.7 2,000,000 4,278,289
Property
.93 1 .00 .64
Leasing
Co., Ltd.
Anhui
Huapeng 11,784,62 -912,673. 10,871,95
Textile 6.51 03 3.48
Co.,Ltd.
Shenzhen
Guanhua
65,503,36 -520,438. 67,584,49 132,567,4
Printing
0.10 51 7.83 19.42
& Dyeing
Co., Ltd.
Shenzhen
Xieli
Automobi 0.00
le Co.,
Ltd.
17,425,76 65,503,36 -795,961. 2,000,000 67,584,49 147,717,6
Subtotal
6.44 0.10 83 .00 7.83 62.54
II. Associated enterprises
Shenzhen
Changlian
fa
2,234,057 2,316,173
Printing 82,115.91
.19 .10
and
dyeing
Company
Jordan
2,363,614 -202,853. 674,303.1 2,835,064
Garnent
.70 10 7 .77
Factory
Yehui
Internatio 10,928,64 -197,358. 132,938.3 10,864,22
nal Co., 7.33 53 7 7.17
Ltd.
15,526,31 -318,095. 807,241.5 16,015,46
Subtotal
9.22 72 4 5.04
32,952,08 65,503,36 -1,114,05 807,241.5 2,000,000 67,584,49 163,733,1
Total
5.66 0.10 7.55 4 .00 7.83 27.58
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
（3）Other notes
The other amount of Guanhua Printing & Dyeing Company is to convert Guanhua Printing & Dyeing Investment
from other equity instruments to long-term equity investment.
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
33,021,263.65 4,357,490.45 31,576,065.65 5,166,425.81
Business
Other Business income 1,572,244.63 1,572,244.63 1,767,833.77 1,767,833.77
Total 34,593,508.28 5,929,735.08 33,343,899.42 6,934,259.58
Whether implemented new revenue guidelines?
□ Yes √ No
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
-1,114,057.55 616,945.67
measured by adopting the Equity method
Dividend income from investments in other
908,000.00
equity instruments during the holding period
Investment income received from holding of
574,774.15
available-for –sale financial assets
Total -206,057.55 1,191,719.82
6.Other notes
Nil
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 12,236,686.25
Govemment subsidy recognized in current
11,035,139.06
gain and loss(excluding those closely related
180
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
to the Company’s business and granted
under the state’s policies)
Other non-business income and expenditures
4,241,169.03
other than the above
Less :Influenced amount of income tax 3,121,789.28
Influenced amount of minor shareholders’
6,010,334.88
equity (after tax)
Total 18,380,870.18 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
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 earnings per share
EPS（Yuan/share）
Profit of report period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to the
Common stock shareholders of 0.32% 0.0153 0.0153
Company.
Net profit attributable to the
Common stock shareholders of
-0.43% -0.0206 -0.0206
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
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
Not applicable
4.Other
Nil
181
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2019
XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financial
controller;
2.The original of the auditor’s report bearing the seal of the certified public accountants and the signature of
C.P.A.
3.The originals of all the Company’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period.
4. Other relevant information
The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 21, 2019
182
