Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
Stock code: 000045, 200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No.: 2020-37
Shenzhen Textile (Holdings) Co., Ltd.
Summary of the Semi-Annual Report 2020
I. Important notes
The summary is abstract from full-text of summary of the semi-annual report, for more details information,
investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and
other website appointed by CSRC.
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Stock abbreviation Shen Textile A, Shen Textile B Stock code 000045,200045
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Office Address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
E-mail jiangp@chinasthc.com lizy@chinasthc.com
2. Major accounting data and financial indicators
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） 856,313,348.74 1,008,863,295.50 -15.12%
Net profit attributable to the shareholders
719,734.74 7,832,287.98 -90.81%
of the listed company（RMB）
Net profit after deducting of non-recurring -7,117,945.43 -10,548,582.20 32.52%
gain/loss attributable to the shareholders of
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
listed company（RMB）
Cash flow generated by business operation,
-135,619,475.23 23,826,362.35 -669.20%
net（RMB）
Basic earning per share (RMB/Share) 0.0014 0.0153 -90.85%
Diluted gains per
0.0014 0.0153 -90.85%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.03% 0.32% -0.29%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 4,476,298,874.25 4,531,399,885.99 -1.22%
Net assets attributable to shareholder of
2,730,559,277.47 2,727,764,144.36 0.10%
listed company（RMB）
3.Shareholders and shareholding
In Shares
Number of shareholders of
Total Number of common
preferred stocks of which
shareholders at the end of the 30,787 0
voting rights recovered in the
reporting period
report period (If any)
Shareholdings of Top 10 shareholders
Shareholders Proportion of Number of Number or share
Nature of pledged/frozen
shares held shares held at Amount of restricted shares held
shareholder
（%） period -end State of share Amount
Shenzhen
Investment State-owned
45.96% 234,069,436 0
Holdings Co., legal person
Ltd.
Shenzhen
Shenchao State-owned
Technology 3.17% 16,129,032 0
Investment Co., Legal person
Ltd.
Domestic
Sun Huiming 0.63% 3,224,767 0
Nature person
Domestic
Shao Hua 0.59% 3,000,000 0
Nature person
Domestic
Li Songqiang 0.56% 2,873,078 0
Nature person
Domestic
Su Weipeng 0.55% 2,823,066 0
Nature person
Domestic
Lv Qiang 0.46% 2,327,146 0
Nature person
Domestic
Li Zengmao 0.29% 1,478,697 0
Nature person
Domestic
Kuang Guowei 0.27% 1,400,200 0
Nature person
Domestic
Hong Fan 0.26% 1,338,900 0
Nature person
Shenzhen Shenchao Technology Investment Co., Ltd. was a wholly-owned subsidiary of
Explanation on shareholders Shenzhen Investment Holdings Co., Ltd., according to the decision of the State-owned Assets
participating in the margin Supervision and Administration Commission of Shenzhen Municipal People's Government,
trading business Shenzhen Shenchao Technology Investment Co., Ltd was transferred to Shenzhen Major
Industrial Investment Group Co., Ltd in June 2019. Shenzhen Investment Holdings Co., Ltd and
Shenzhen Shenchao Technology Investment Co., Ltd are both controlled by the State-owned
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
Assets Supervision and Administration Commission of the Shenzhen Municipal People's
Government, so they are persons acting in concert. Except this, the Company did not whether
there is relationship between the top ten shareholders holding non-restricted negotiable shares
and between the top ten 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.
Explanation on shareholders The Company Shareholder Shao Hua holds 3,000,000 shares of the Company through stock
participating in the margin account with credit transaction ; The Company Shareholder Li Songqiang holds 2,872,653 shares
trading business(if any )(See of the Company through stock account with credit transaction; The Company Shareholder Kuang
Notes 4) Guowei holds 1,400,000 shares of the Company through stock account with credit transaction.
4.Changing of controlling shareholder and practical controller of the Company.
Change of holding shareholder
□ Applicable √ Not applicable
No change of holding shareholder in the report period.
Change of substantial controller
□ Applicable √ Not applicable
No change of substantial controller in the report period.
5.Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Not applicable
No preference shareholders in the reporting period
6.Corporate bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this report or were due but could not be redeemed in full?
No
III. Performance discussion & analysis
1．Performance Review for Reporting period
In the first half of 2020, facing the severe challenge of the sudden pneumonia epidemic in COVID-19, the
company went all out to prevent and control the epidemic and resume production, made great efforts to ensure the
main production and operation of polarizers, accelerated the construction of ultra-large TV polarizer line 7 project,
responded to the call of the municipal government, municipal SASAC and Shenzhen Investment Holdings, and
reduced rent and fees to support the real economy to overcome difficulties.
During the reporting period, the Company realized the operating income of RMB 856 million, representing a
decrease of RMB153 million or 15.12% over the same period of last year; the total profit was RMB -3.7328
million, representing a decrease of RMB7.7789 million or 192.26% over the same period last year;the net profit of
shareholders attributable to listed companies was RMB 719,700, which was RMB 7.1126 million lower than that
of the same period last year and 90.81% lower than that of the same period last year.During the reporting period,
the adjustment of the order structure of TFT-LCD Line 4/6 products achieved initial results, and the losses of
polarizer business decreased significantly year on year. The main reasons for the decrease in net profit attributable
to shareholders of listed companies compared with the same period of last year are as follows: Firstly, in order to
jointly cope with the COVID-19 epidemic and actively fulfill social responsibilities, the company and its
wholly-owned enterprises responded to the call of the Shenzhen Municipal Party Committee and Municipal
Government and SASAC to reduce and exempt some rent of its own properties (except residential properties) in
February and March of this year, and the rental income during the reporting period decreased significantly
year-on-year; Secondly, during the reporting period, SAPO Photoelectric, a subsidiary, did not carry out trade
business, and its income from trade business decreased year on year.
Reviewing the first half of 2020, the company focused on the key work, with contents as follows:
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
(I) Various measures to improve the operation and profitability of polarizer business
During the reporting period, the company carries out the general policy of "maintaining utilization and
adjusting structure", adjusts customer orders, optimizes product structure, adjusts sales strategies, reduces the
sales share of low and negative gross profit products, successfully completes the import and mass production of
multiple products, reaches cooperation intention with some end customers, and makes use of the strict
requirements of quality customers on quality, delivery time and cost to improve management level, timely
understands market conditions and improves the company's operational capability. Secondly, it strengthens the
process management of quality inspection, reduces the rate of customer complaints, and makes every effort to
improve the speed of line production machine so as to increase production capacity and ensure the delivery of
orders with good quality and quantity. Thirdly, it continuously optimizes the production and operation and reduces
the cost. By improving the automation level, optimizing the supply chain system and strictly controlling the
increase of inventory, the company reduces the operating cost in many ways.
Meanwhile, in order to improve the competitiveness of products and strengthen the research and
development of independent intellectual property rights, the company has carried out a number of development
and application of new products and materials and performance improvement projects of mass-produced products
around the market demand, and completed the development and introduction of some products and materials on
schedule, reducing costs and improving profitability through the application and development of new products
and materials. During the reporting period, the company has applied for 2 patents (utility models), and 1 patent
was granted a notice of authorization. With the two technical platforms of "Shenzhen Polarizing Materials and
Technology Engineering Laboratory" and "Municipal Research and Development Center", the company focuses
on the research and development and industrialization of the core production technology of LCD polarizers, the
development and industrialization of new products of OLED polarizers, and the localization of raw materials for
polarizer production, actively expands investment in research and development, horizontally explores innovative
development of mature products, and enhances its sustainable development capability.
(II) Actively promote the construction of Line 7 project
Affected by the COVID-19, the company is faced with problems such as labor shortage, insufficient supply
of engineering materials and equipment, limited transportation, etc. The construction of Line 7 project was not
fully resumed until mid-March 2020. The company further strengthened the monitoring and management of
budget, schedule, quality and other aspects, rearranged the construction time node, and is currently carrying out
the purification and decoration engineering construction and the installation of extension machine equipment. It is
planned to complete the main machine equipment debugging in February 2021, and start the trial production.
During the reporting period, the Company has prudently demonstrated that it will invest 147.2 million yuan
in the construction of 1 RTP production line and 2 RTS production lines on the Line 7 project. The source of funds
is its own funds and bank loans. The main reasons for this increase in investment are first to meet the needs of
downstream panel customers and enhance the depth of customer cooperation; second, to help improve the overall
production efficiency of the Line 7 project, simplify the production process, and effectively reduce production
costs; third, to further improve Enterprise competitiveness provides guarantee for the successful operation of Line
7 project. For the above details, please refer to the "Announcement on the Increase of Investment and
Construction Progress in the Industrialization Project of Polarizers for Ultra-large TVs (Line 7)" by Juchao
Information Network (http://www.cninfo.com.cn) on April 30, 2020. (No. 2020-25).
(III) Actively respond to the call of the Municipal Party Committee and the municipal government, and
implement the property rent reduction measures
In accordance with the spirit of the documents of the State-owned Assets Supervision and Administration
Commission of the People's Republic of China and Shenzhen Investment Holdings on the implementation of
Several Measures to Support Enterprises to Overcome Difficulties in Response to Pneumonia Infected by
COVID-19 in Shenzhen, the company first issued and published the implementation measures for rent exemption
and fee reduction during COVID-19 epidemic period. Non-state-owned enterprises, scientific research institutions,
medical institutions, individual industrial and commercial households and operating natural persons who rent the
properties of the company and their wholly-owned enterprises have been exempted of the rent for 2 months from
February to March this year, which is RMB 13.6931 million according to statistics; Secondly, it sent a letter to 9
shareholders of all 6 participating holding enterprises including property leasing management, proposing that the
participating holding enterprises reduce the rent for 2 months, so as to reduce the operating pressure for the entity
operators. According to statistics, the participating holding enterprises reduced the rent by RMB 5.7702 million in
total.
(IV) Actively strive for policy support
The company comprehensively combs the government's industrial development fund support policies,
actively applies for the major award projects of the enterprise technical transformation support plan of the
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
Municipal Bureau of Industry and Information Technology, and applies for various support policies in various
national ministries and commissions, relevant departments in Guangdong Province and Shenzhen City. As of the
disclosure date of this report, enterprises have actively applied for subsidies for epidemic prevention and control
funds and subsidies for projects under construction, totaling RMB 18.8654 million.
(V) Revitalize existing assets and focus on developing the main business
In order to improve the overall operational capability of the company's assets and revitalize existing assets,
the company plans to jointly publicly list and transfer 20% equity of Shenzhen Xiangjiang Trading Co., Ltd. held
by the company and 80% equity of Shenzhen Xiangjiang Trading Co., Ltd. held by Hunan Guofu Asset
Management Co., Ltd., and the company has fulfilled the internal decision-making procedures. After confirming
the transfer plan, it will publicly list and collect the intended transferee; Secondly, it well ensures the liquidation
of Anhui Huapeng Textile Co., Ltd. and recovers the investment cost. At present, the shareholders of Anhui
Huapeng Textile Co., Ltd. have reached an agreement on the employee resettlement and historical issues, and are
further accelerating the liquidation work, and plan to complete the liquidation work by the end of this year;
Thirdly, it accelerates the dissolution and liquidation of overseas textile and garment processing enterprises.
Affected by the Sino-US trade war and epidemic situation, overseas garment processing enterprises that have been
participating in the company's shareholding operation for many years are experiencing difficulties and sustained
losses, and are gradually reducing their business and striving to complete the dissolution and liquidation work this
year.
(VI) Implement epidemic prevention and control properly, and ensure safe production in a stable and orderly
manner
Firstly, the company strengthens organizational leadership to effectively prevent and control the spread of the
epidemic. The company has set up a special class for epidemic prevention and control, refined the division of
responsibilities, enhanced the joint efforts of work, formed a coordinated and efficient epidemic prevention work
mechanism with responsibilities according to division and level-by-level transmission, and enhanced the dense
epidemic prevention responsibility network to ensure the implementation of various deployment measures and
effectively protect the life safety and health of employees.
Secondly, it fully implements the responsibility system for work safety and deepen the investigation and
management of potential safety hazards. At the beginning of the year, the company made clear regulations on the
work safety of the enterprise, requiring all enterprises to implement the main responsibility of work safety and
implement the one-vote veto system of work safety, and incorporate work safety into the annual performance
appraisal of enterprise leaders. Meanwhile, the Safety Committee of the Company carried out on-site surprise
inspections on construction sites such as Line 7 construction project, Lisi Building facade renovation project and
Guanhua Building parking lot project, and issued timely rectification notices of potential safety hazards and
problems, which were completed during the reporting period.
(VII) Implement inspection and rectification work and consolidate the foundation of party building
According to the work arrangement of the superior Party Committee, based on the study of the central group
of the Party Committee and the "three sessions and one lesson", the company has earnestly carried out various
forms of theoretical study, strengthened the annual special assessment of party building, the assessment of party
branch secretary and the system construction, and consolidated the foundation of party building. According to the
feedback from the Third Inspection Group of the Party Committee of SASAC, it formulates rectification measures,
clarifies the time limit for rectification, timely submits rectification reports and publicize the rectification situation,
compacts the inspection and rectification responsibilities, and makes overall plans to promote the implementation
of rectification.
2.Maters related to financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the
financial report for the prior year
√ Applicable □Not applicable
The content and reason for change of
Approval process Remarks
accounting policy
In 2017, the Ministry of Finance issued 4
new financial instrument standards Adopted at the 27th meeting of the 7th http://www.cninfo.com.cn On March
including the revised Accounting Standards Board of Directors 14,2020(Announcement No.:2020-14)
for Business Enterprises No.22-Recognition
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2020
and Measurement of Financial Instruments
and the Accounting Standards for Business
Enterprises No.14-Revenue (hereinafter
referred to as the new revenue standard),
which stipulated that enterprises listed at
home and abroad at the same time, as well
as enterprises listed overseas and adopting
international financial reporting standards
or accounting standards for business
enterprises to prepare financial statements,
should implement the new standards from
January 1, 2018. According to regulations,
the company will implement the new
income standards from January 1, 2020,
and adjust the relevant contents of
accounting policies.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report for
the prior year
□ Applicable √ Not applicable
No such cases in the reporting period.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 20, 2020
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