Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2020
August 20, 2020
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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.
June 30,2020
In RMB
Items June 30,2020 December 30,2019
Current asset：
Monetary fund 208,316,334.46 409,564,847.52
Settlement provision
Outgoing call loan
Transactional financial assets 779,000,000.00 830,000,000.00
Derivative financial assets
Note receivable 43,359,624.18 40,424,601.97
Account receivable 437,419,876.54 365,325,029.38
Financing of receivables 17,933,597.98
Prepayments 13,159,741.33 18,445,857.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 13,661,767.18 12,440,761.13
Including：Interest receivable 8,217,934.25 7,610,043.19
Dividend receivable
Repurchasing of financial assets
Inventories 465,530,597.15 391,717,935.12
Contract assets
Assets held for sales
1
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Non-current asset due within 1 year
Other current asset 153,181,153.73 140,821,609.72
Total of current assets 2,113,629,094.57 2,226,674,240.35
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other investment on bonds
Long-term receivable
Long term share equity investment 150,344,313.44 152,209,929.72
Other equity instruments investment 251,031,389.11 248,781,946.73
Other non-current financial assets
Real estate investment 110,981,279.05 112,730,320.90
Fixed assets 850,896,074.15 903,229,077.83
Construction in progress 955,248,196.39 839,866,275.92
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 36,621,663.74 36,517,996.34
Development expenses
Goodwill
Long-germ expenses to be amortized 2,408,396.07 2,692,750.67
Deferred income tax asset 5,138,467.73 5,618,026.43
Other non-current asset 3,079,321.10
Total of non-current assets 2,362,669,779.68 2,304,725,645.64
Total of assets 4,476,298,874.25 4,531,399,885.99
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 226,976,267.97 241,297,770.64
2
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Advance receipts 23,352,862.33 30,530,117.62
Contract liabilities 2,379,082.85
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 34,810,699.85 38,556,180.20
Tax payable 7,353,738.67 22,545,550.33
Other account payable 151,289,669.81 152,645,780.14
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 446,162,321.48 485,575,398.93
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
Deferred income 116,384,476.41 121,264,571.22
Deferred income tax liability 66,052,288.66 69,944,345.66
Other non-current liabilities
Total non-current liabilities 182,436,765.07 191,208,916.88
Total of liability 628,599,086.55 676,784,315.81
Owners’ equity
Share capital 507,835,189.00 509,338,429.00
3
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,967,811,922.83 1,974,922,248.03
Less：Shares in stock 7,525,438.20 16,139,003.40
Other comprehensive income 121,813,181.68 119,737,783.31
Special reserve
Surplus reserves 90,596,923.39 90,596,923.39
Common risk provision
Retained profit 50,027,498.77 49,307,764.03
Total of owner’s equity belong to the
2,730,559,277.47 2,727,764,144.36
parent company
Minority shareholders’ equity 1,117,140,510.23 1,126,851,425.82
Total of owners’ equity 3,847,699,787.70 3,854,615,570.18
Total of liabilities and owners’ equity 4,476,298,874.25 4,531,399,885.99
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Mu Linying
2.Parent Company Balance Sheet
In RMB
Items June 30,2020 December 31,2019
Current asset：
Monetary fund 12,264,752.47 27,979,338.37
Transactional financial assets 645,000,000.00 650,000,000.00
Derivative financial assets
Note receivable
Account receivable 8,203,393.69 522,931.04
Financing of receivables
Prepayments 113,035.17 768,099.94
Other account receivable 16,879,106.51 17,039,506.00
Including：Interest receivable 8,016,893.16 7,329,228.31
4
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Dividend receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 682,460,287.84 696,309,875.35
Non-current assets：
Debt investment
Other investment on bonds
Long-term receivable
Long term share equity investment 2,100,564,895.60 2,102,430,511.88
Other equity instruments investment 209,066,395.02 206,816,952.64
Other non-current financial assets
Real estate investment 105,720,014.17 107,199,622.80
Fixed assets 24,905,656.28 25,500,695.77
Construction in progress 19,552.00 19,552.00
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 657,302.15 659,937.75
Development expenses
Goodwill
Long-germ expenses to be amortized 732,222.25 800,858.17
Deferred income tax asset 4,993,437.12 5,466,478.06
Other non-current asset
Total of non-current assets 2,446,659,474.59 2,448,894,609.07
Total of assets 3,129,119,762.43 3,145,204,484.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Note payable
Account payable 411,743.57 411,743.57
5
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Advance receipts 639,024.58 2,878,936.58
Contract Liabilities 2,236,912.00
Employees’ wage payable 7,266,874.43 11,910,175.11
Tax payable 5,607,736.61 20,801,961.18
Other account payable 111,633,093.71 119,984,209.60
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1
year
Other current liability
Total of current liability 127,795,384.90 155,987,026.04
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 550,000.00 600,000.00
Deferred income tax liability 63,061,040.14 66,953,097.14
Other non-current liabilities
Total non-current liabilities 63,611,040.14 67,553,097.14
Total of liability 191,406,425.04 223,540,123.18
Owners’ equity
Share capital 507,835,189.00 509,338,429.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,582,759,174.16 1,589,869,499.36
Less：Shares in stock 7,525,438.20 16,139,003.40
Other comprehensive income 112,839,436.11 110,764,037.74
6
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Special reserve
Surplus reserves 90,596,923.39 90,596,923.39
Retained profit 651,208,052.93 637,234,475.15
Total of owners’ equity 2,937,713,337.39 2,921,664,361.24
Total of liabilities and owners’
3,129,119,762.43 3,145,204,484.42
equity
3.Consolidated Income statement
In RMB
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 856,313,348.74 1,008,863,295.50
Incl：Business income 856,313,348.74 1,008,863,295.50
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 847,649,045.52 1,013,198,391.97
Incl：Business cost 760,908,303.61 940,587,510.73
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance
contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 2,689,728.06 3,897,496.78
Sales expense 13,380,921.28 7,369,804.52
Administrative expense 44,347,465.66 42,901,879.68
R & D costs 24,561,050.95 19,172,388.20
Financial expenses 1,761,575.96 -730,687.94
Including：Interest expense 221,034.71 3,783,883.97
Interest income -1,738,185.54 -15,744,104.66
Add: Other income 13,045,221.53 11,035,139.06
Investment gain（“-”for loss） 13,932,825.63 -206,057.55
7
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Incl: investment gains from affiliates -2,253,932.85 -1,114,057.55
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 -3,807,687.50 2,333,764.98
Impairment loss of assets -35,474,634.93 -21,259,451.35
Assets disposal income -6,837.44 12,236,686.25
III. Operational profit（“-”for loss） -3,646,809.49 -195,015.08
Add ：Non-operational income 20,431.28 4,247,261.65
Less: Non-operating expense 106,410.77 6,092.62
IV. Total profit(“-”for loss) -3,732,788.98 4,046,153.95
Less：Income tax expenses 5,258,391.87 9,773,007.83
V. Net profit -8,991,180.85 -5,726,853.88
(I) Classification by business
continuity
1.Net continuing operating profit -8,991,180.85 -5,726,853.88
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners
719,734.74 7,832,287.98
of parent company
2.Minority shareholders’ equity -9,710,915.59 -13,559,141.86
VI. Net after-tax of other
2,075,398.37 52,056,251.94
comprehensive income
Net of profit of other comprehensive i
2,075,398.37 52,056,251.94
ncome attributable to owners of the p
arent company.
（I）Other comprehensive income
items that will not be reclassified into
1,687,081.80 51,249,010.40
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit
plans of changes in net debt or net ass
ets
8
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
2.Other comprehensive income under
the equity method investee can not be
reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity 1,687,081.80 51,249,010.40
instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will 388,316.57 807,241.54
be reclassified into profit or loss.
1.Other comprehensive income under
the equity method investee can be recl
assified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income arising
from the reclassification of financial
assets
4.Allowance for credit impairments in
investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency fi
388,316.57 807,241.54
nancial statements
7.Other
Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income -6,915,782.48 46,329,398.06
Total comprehensive income
attributable to the owner of the parent 2,795,133.11 59,888,539.92
company
Total comprehensive income
-9,710,915.59 -13,559,141.86
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.0014 0.0153
(II)Diluted earnings per share 0.0014 0.0153
9
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Mu Linying
4. Income statement of the Parent Company
In RMB
Items The first half year of 2020 The first half year of 2019
I. Income from the key business 26,969,922.20 34,593,508.28
Incl：Business cost 4,305,058.16 5,929,735.08
Business tax and surcharge 834,883.15 1,412,933.65
Sales expense
Administrative expense 13,651,499.00 16,206,040.37
R & D expense
Financial expenses -158,395.30 -10,132,086.89
Including：Interest expenses
Interest income -176,466.36 -9,924,921.96
Add：Other income 57,638.72 50,000.00
Investment gain（“-”for loss） 11,066,543.43 -206,057.55
Including: investment gains from
-2,253,932.85 -1,114,057.55
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 -357,278.55 23,970.35
Impairment loss of assets
Assets disposal income 12,301,144.92
II. Operational profit（“-”for loss） 19,103,780.79 33,345,943.79
Add ：Non-operational income
Less：Non -operational expenses 27,244.40
III. Total profit(“-”for loss) 19,076,536.39 33,345,943.79
Less：Income tax expenses 5,102,958.61 8,655,961.40
IV. Net profit 13,973,577.78 24,689,982.39
10
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
1.Net continuing operating profit 13,973,577.78 24,689,982.39
2.Termination of operating net profit
V. Net after-tax of other
2,075,398.37 52,056,251.94
comprehensive income
（I）Other comprehensive income
items that will not be reclassified into
1,687,081.80 51,249,010.40
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefi
t plans of changes in net debt or net
assets
2.Other comprehensive income unde
r the equity method investee can not
be reclassified into profit or loss.
3. Changes in the fair value of
investments in other equity 1,687,081.80 51,249,010.40
instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
(II)Other comprehensive income that 388,316.57 807,241.54
will be reclassified into profit or loss
1.Other comprehensive income unde
r the equity method investee can be
reclassified into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3. Other comprehensive income
arising from the reclassification of
financial assets
4.Allowance for credit impairments in
investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency
388,316.57 807,241.54
financial statements
7.Other
VI. Total comprehensive income 16,048,976.15 76,746,234.33
11
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2020 The first half year of 2019
I.Cash flows from operating activities
Cash received from sales of goods or
771,604,176.04 999,946,160.35
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 1,315,022.98 9,977,371.04
Other cash received from business
91,408,927.56 29,115,913.92
operation
Sub-total of cash inflow 864,328,126.58 1,039,039,445.31
Cash paid for purchasing of
799,466,447.26 884,541,697.70
merchandise and services
Net increase of client trade and
advance
12
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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 to staffs or paid for staffs 84,518,321.17 82,695,671.17
Taxes paid 31,950,122.40 15,981,651.90
Other cash paid for business activities 84,012,710.98 31,994,062.19
Sub-total of cash outflow from
999,947,601.81 1,015,213,082.96
business activities
Net cash generated from /used in
-135,619,475.23 23,826,362.35
operating activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 9,408,374.94 2,513,730.75
Net cash retrieved from disposal of
fixed assets, intangible assets, and 600.00 6,200.00
other long-term assets
Net cash received from disposal of
subsidiaries or other operational
units
Other investment-related cash
1,812,790,070.06 620,264,450.94
received
Sub-total of cash inflow due to
1,822,199,045.00 622,784,381.69
investment activities
Cash paid for construction of fixed
assets, intangible assets and 119,759,298.85 88,061,134.28
other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries
and other operational units
Other cash paid for investment 1,654,000,000.00 985,495,790.87
13
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
activities
Sub-total of cash outflow due to
1,773,759,298.85 1,073,556,925.15
investment activities
Net cash flow generated by
48,439,746.15 -450,772,543.46
investment
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
Other financing –related cash
received
Sub-total of cash inflow from
81,566,681.47
financing activities
Cash to repay debts 479,551,062.11
Cash paid as dividend, profit, or
42,197,297.00
interests
Including: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing
8,981,300.40 11,448,442.40
activities
Sub-total of cash outflow due to
8,981,300.40 533,196,801.51
financing activities
Net cash flow generated by financing -8,981,300.40 -451,630,120.04
IV. Influence of exchange rate
alternation on cash and cash 1,220,721.03 548,334.28
equivalents
V.Net increase of cash and cash
-94,940,308.45 -878,027,966.87
equivalents
Add: balance of cash and cash
268,646,588.18 1,133,574,235.22
equivalents at the beginning of term
VI ..Balance of cash and cash
173,706,279.73 255,546,268.35
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2020 The first half year of 2019
14
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
I.Cash flows from operating activities
Cash received from sales of goods or
19,462,991.54 35,598,741.25
rending of services
Tax returned
Other cash received from business
2,298,590.45 4,798,306.72
operation
Sub-total of cash inflow 21,761,581.99 40,397,047.97
Cash paid for purchasing of
3,731,669.95 1,795,145.94
merchandise and services
Cash paid to staffs or paid for staffs 13,526,840.12 11,643,989.59
Taxes paid 27,458,170.70 10,101,259.32
Other cash paid for business activities 1,020,252.05 24,376,996.84
Sub-total of cash outflow from
45,736,932.82 47,917,391.69
business activities
Net cash generated from /used in
-23,975,350.83 -7,520,343.72
operating activities
II. Cash flow generated by investing
Cash received from investment
12,000,000.00
retrieving
Cash received as investment gains 6,311,044.65 2,513,730.75
Net cash retrieved from disposal of
fixed assets, intangible assets, and
other long-term assets
Net cash received from disposal of
subsidiaries or other operational
units
Other investment-related cash
791,934,487.06 8,629,426.36
received
Sub-total of cash inflow due to
798,245,531.71 23,143,157.11
investment activities
Cash paid for construction of fixed
assets, intangible assets and 1,003,466.38 54,410.00
other long-term assets
Cash paid as investment
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
780,000,000.00 60,000,000.00
activities
15
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Sub-total of cash outflow due to
781,003,466.38 60,054,410.00
investment activities
Net cash flow generated by
17,242,065.33 -36,911,252.89
investment
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
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
8,981,300.40 11,448,442.40
activities
Sub-total of cash outflow due to
8,981,300.40 11,448,442.40
financing activities
Net cash flow generated by financing -8,981,300.40 -11,448,442.40
IV. Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash
-15,714,585.90 -55,880,039.01
equivalents
Add: balance of cash and cash
27,979,338.37 85,416,567.74
equivalents at the beginning of term
VI ..Balance of cash and cash
12,264,752.47 29,536,528.73
equivalents at the end of term
16
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2020
Minor
Total of
sharehol
Owner’s equity Attributable to the Parent Company owners’
ders’
equity
equity
Items
Other Equity instrument
Other Specia
Less: Common
Share Capital Compre lized Surplus Retained Subtot
Preferred Sustai Shares risk Other
Capital Other reserves hensive reserv reserves profit al
stock nable in stock provision
Income e
debt
I .Balance at 1,974,92 2,727, 1,126,8
509,338 16,139, 119,737, 90,596, 49,307,764. 3,854,615,5
the end of 2,248.0 764,1 51,425.
,429.00 003.40 783.31 923.39 03 70.18
last year 3 44.36 82
Add:
Change
of
accoun
ting
policy
Correcting
of previous
errors
Merger of
entities
17
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
under
common
control
Other
II. Balance
1,974,92 2,727, 1,126,8
at the 509,338 16,139, 119,737, 90,596, 49,307,764. 3,854,615,5
2,248.0 764,1 51,425.
beginning of ,429.00 003.40 783.31 923.39 03 70.18
3 44.36 82
current year
III .Changed 2,795,
-1,503,2 -7,110,3 -8,613,5 2,075,39 -9,710,9 -6,915,782.4
in the 719,734.74 133.1
40.00 25.20 65.20 8.37 15.59 8
current year 1
（1）Total 2,795,
2,075,39 -9,710,9 -6,915,782.4
comprehens 719,734.74 133.1
8.37 15.59 8
ive income 1
（II）
Investment
or -1,503,2 -7,110,3 -8,613,5
decreasing 40.00 25.20 65.20
of capital by
owners
1．Ordinary
Shares inve
sted by shar
eholders
2 ． Holders
of other equ
ity instrume
nts invested
18
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
capital
3．Amount
of shares
paid and
accounted
as owners’
equity
-1,503,2 -7,110,3 -8,613,5
4．Other
40.00 25.20 65.20
（III）Profit
allotment
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
3．Allotment
to the
owners (or
shareholder
s)
4．Other
(IV) Internal
transferring
of owners’
19
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
comprehens
20
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
ive income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
IV. Balance 1,967,8 2,730, 1,117,1
507,835, 7,525,4 121,813 90,596, 50,027,498. 3,847,699,7
at the end 11,922. 559,2 40,510.
189.00 38.20 ,181.68 923.39 77 87.70
of this term 83 77.47 23
Amount in last year
In RMB
The first half year of 2019
Minor
Total of
sharehol
Owner’s equity Attributable to the Parent Company owners’
ders’
equity
Items equity
Other Equity instrument Other Specia
Less: Common
Share Capital Compre lized Surplus Retained Subtot
Preferred Shares risk Other
Capital Sustai Other reserves hensive reserv reserves profit al
stock in stock provision
nable Income e
21
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
debt
I .Balance at 1,865,7 2,373, 1,086,1
511,274, 27,230,6 1,339,2 80,004, -57,774,473. 3,459,480,5
the end of 16,983. 329,9 50,534.
149.00 79.00 08.41 803.23 41 26.74
last year 63 91.86 88
Add:
Change
147,37
of 147,376, 147,376,128
6,128.
accoun 128.10 .10
10
ting
policy
Correcting
of previous
errors
Merger of
entities
under
common
control
Other
II.Balance at
1,865,7 2,520, 1,086,1
the 511,274, 27,230,6 148,715 80,004, -57,774,473. 3,606,856,6
16,983. 706,1 50,534.
beginning of 149.00 79.00 ,336.51 803.23 41 54.84
63 19.96 88
current year
III .Changed 59,88
52,056,2 7,832,287.9 -13,802, 46,086,404.
in the 8,539.
51.94 8 135.00 92
current year 92
（1）Total 59,88
52,056,2 7,832,287.9 -13,802, 46,086,404.
comprehens 8,539.
22
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
ive income 51.94 8 92 135.00 92
（II）
Investment
or
decreasing
of capital by
owners
1．Ordinary
Shares inve
sted by shar
eholders
2 ． Holders
of other equ
ity instrume
nts invested
capital
3．Amount
of shares
paid and
accounted
as owners’
equity
4．Other
（III）Profit
allotment
1.Providing
of surplus
reserves
23
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
2.Providing
of common
risk
provisions
3．Allotment
to the
owners (or
shareholder
s)
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
24
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
surplus
reserves.
4.Change
amount of
defined
benefit
plans that
carry
forward
Retained
earnings
5．Other
comprehens
ive income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
IV. Balance 511,274, 1,865,7 27,230,6 200,771 80,004, -49,942,185 2,580, 1,072,34 3,652,943,0
at the end 149.00 16,983. 79.00 ,588.45 803.23 .43 594,6 8,399.8 59.76
25
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
of this term 63 59.88 8
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2020
Other Equity instrument
Less: Other Specializ Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv ed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
1,589,869, 16,139, 110,764,037.7 90,596,923. 637,234,475.1 2,921,664
I.Balance at the end of last year 509,338,429.00
499.36 003.40 4 39 5 ,361.24
Add: Change of accounting policy
Correcting of previous errors
Other
II. Balance at the beginning of current 1,589,869, 16,139, 110,764,037.7 90,596,923. 637,234,475.1 2,921,664
509,338,429.00
year 499.36 003.40 4 39 5 ,361.24
-7,110,32 -8,613,5 16,048,97
III .Changed in the current year -1,503,240.00 2,075,398.37 13,973,577.78
5.20 65.20 6.15
16,048,97
（I）Total comprehensive income 2,075,398.37 13,973,577.78
6.15
(II) Investment or decreasing of capital -1,503,240.00 -7,110,32 -8,613,5
26
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
The first half year of 2020
Other Equity instrument
Less: Other Specializ Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv ed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
by owners 5.20 65.20
1 ． Ordinary Shares invested by shareh
olders
2．Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
-7,110,32 -8,613,5
4．Other -1,503,240.00
5.20 65.20
（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)
27
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
The first half year of 2020
Other Equity instrument
Less: Other Specializ Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv ed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
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
1,582,759, 7,525,4 112,839,436.1 90,596,923. 651,208,052.9 2,937,713
IV. Balance at the end of this term 507,835,189.00
174.16 38.20 1 39 3 ,337.39
Amount in last year
In RMB
The first half year of 2019
Items
Share Capital Other Equity instrument Capital Less: Other Special Surplus Retained profit Other Total of
28
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
reserves Share Comprehensive ized reserves owners’
Sust s in Income reserve equity
Preferred Othe
aina stock
stock r
ble
debt
27,23
511,274,149.0 1,599,025,45 80,004,803. 2,648,079,389.
I.Balance at the end of last year 0,679 1,339,208.41 483,666,452.70
0 4.96 23 30
.00
Add: Change of accounting policy 138,402,384.72 138,402,384.72
Correcting of previous errors
Other
27,23
II. Balance at the beginning of current 511,274,149.0 1,599,025,45 80,004,803. 2,786,481,774.
0,679 139,741,593.13 483,666,452.70
year 0 4.96 23 02
.00
III. Changed in the current year 52,056,251.94 24,689,982.39 76,746,234.33
（I）Total comprehensive income 52,056,251.94 24,689,982.39 76,746,234.33
(II) Investment or decreasing of capital
by owners
1 ． Ordinary Shares invested by shareh
olders
2 ． Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
（III）Profit allotment
29
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
The first half year of 2019
Other Equity instrument
Less:
Other Special Total of
Items Sust Capital Share Surplus
Share Capital Preferred Othe Comprehensive ized Retained profit Other owners’
aina reserves s in reserves
stock r Income reserve equity
ble stock
debt
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 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
30
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
The first half year of 2019
Other Equity instrument
Less:
Other Special Total of
Items Sust Capital Share Surplus
Share Capital Preferred Othe Comprehensive ized Retained profit Other owners’
aina reserves s in reserves
stock r Income reserve equity
ble stock
debt
2．Used this term
（VI）Other
27,23
511,274,149.0 1,599,025,45 80,004,803. 2,863,228,008.
IV. Balance at the end of this term 0,679 191,797,845.07 508,356,435.09
0 4.96 23 35
.00
31
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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.
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 31th meeting of the Seventh Board of
Directors of the Group on August 8,2020.
As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated financial st
atements: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:
32
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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.
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
form pocessing 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
33
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
control date and the combining date for the combining party and the combined party on the acquirement date,
and shall respectively offset the initial retained incomes or the profits and losses of the current period during the
comparative statement.
(2) Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in which all
of the combining enterprises are not ultimately controlled by the same party or parties both before and after the
business combination.For a business combination not involving enterprises under common control, the party
that, on the acquisition date, obtains control of another enterprise participating in the combination is the
acquirer, while that other enterprise participating in the combination is the acquiree. Acquisition date is the date
on which the acquirer effectively obtains control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquiree
during the merger on the acquisition date, is recognized as the business reputation. While the merger cost is less
than the fair value shares of identifiable net assets obtained by the acquiree during the merger, all the
measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained by
the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits and costs if
the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree during
the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with the
conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional
information can prove the existence of related information at acquisition date and the expected economic
benefits on the acquisition date arose from deductible temporary difference by the acquiree can be achieved,
relevant income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference
shall be recognized as profit of the current period.
For a business combination not involving enterprise under common control, which achieved in stages that
involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of
Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article51 of “Accounting Standards for
Business Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion, to judge the
multiple exchange transations whether they are the"package deal". If it belong to the “package deal” in
reference to the preceding paragraphs of this section and “long-term investment” accounting treatment, if it
does not belong to the “package deal” to distinguish the individual financial statements and the consolidated
financial statements related to the accounting treatment:
In the individual financial statements, the total value of the book 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
34
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
involved in other comprehensive income and other comprehensive income associated with the purchase of the
foundation should be used party directly related to the disposal of assets or liabilities of the same accounting
treatment (that is, except in accordance with the equity method of accounting in the acquiree is remeasured
defined benefit plans other than changes in net liabilities or net assets due to a corresponding share of the rest
of the acquisition date into current investment income).
6.Preparation of the consolidated financial statements
(1) The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control.
Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from
its operating activities. The relevant events refer to the activities that have significant influence on the return to
the invested party. In accordance with the specific conditions, the relevant events of the invested party should
conclude the sale and purchase of goods and services, the management of the financial assets, the purchase and
disposal of the assets, the research and development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an enterprise or
entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements
involved in the control of the change, the company will be re-evaluated.
(2) Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevant
information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and
cash flows from the acquisition (the date when the control is obtained) are included in the consolidated income
statement and consolidated statement of cash flows, as appropriated; no adjustment is made to the opening
balance and comparative figures in the consolidated financial statements. Where a subsidiary and a party being
absorbed in a merger by absorption was acquired during the reporting period, through a business combination
involving enterprises under common control, the financial statements of the subsidiary are included in the
consolidated financial statements. The results of operations and cash flow are included in the consolidated
balance sheet and the consolidated income statement, respectively, based on their carrying amounts, from the
date that 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.
35
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds
the minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, the excess
is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or
other reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost.
The difference between 1) the total amount of consideration received from the transaction that resulted in the
loss of control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest
in the former subsidiary’s net assets immediately before the loss of the control is recognized as investment
income for the current period when control is lost. Other comprehensive income related to the former
subsidiary's equity investment, using the foundation and the acquiree directly related to the disposal of the
same assets or liabilities are accounted when the control is lost (ie, in addition to the former subsidiary is
remeasured at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are
transferred to the current investment income). The retained interest is subsequently measured according to the
rules stipulated in the - “Chinese Accounting Standards for Business Enterprises No.2 - Long-term equity
investment ” or “ Chinese Accounting Standards for Business Enterprises No.22 - Determination and
measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity investment until
the loss of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over
whether the transaction is package deal. Terms of the transaction disposition of equity investment in a
subsidiary, subject to the following conditions and the economic impact of one or more of cases, usually
indicates that several transactions should be accounted for as a package deal:①these transactions are
considered。simultaneously, or in the case of mutual influence made, ②these transactions as a whole in order
to achieve a complete business results; ③the occurrence of a transaction depends on occurs at least one other
transaction; ④a transaction look alone is not economical, but when considered together with other transaction
is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in accordance
with “without losing control over the disposal of a subsidiary part of a long-term equity investments“principles
applicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the
transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss
of control of the transaction. However, before losing control of the price of each disposal entitled to share in the
net assets of the subsidiary 's investment corresponding to the difference between the disposal, recognized in
the consolidated financial statements as other comprehensive income, loss of control over the transferred
together with the loss of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1) Joint arrangement
A joint arrangement is an arrangement of which two or more partieshave joint control，depending of the rights
and obligation of the Company in the joint arrangement. A joint operation is a joint arrangement whereby the
Company has rights to the assets, 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 i
nterests related to:
36
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equity investme
nts .
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
When the company becomes a party to the financial instrument contract, the relevant financial assets or
financial liabilities are confirmed.
（1） Classification, recognition and measurement of financial assets
37
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
In accordance with the characteristics of business model for managing financial assets and the contractual cash
flow of financial assets, the Company classifies financial assets into: financial assets measured in amortized cost;
financial assets measured at fair value and their's changes are included in other comprehensive income; financial
assets measured at fair value and their's changes are included in current profits and losses.
Financial assets are measured at fair value upon initial recognition. 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. Accounts receivable or notes receivable arising from the sale of products or the provision of
labor services that do not include or take into account significant financing components are initially recognized
by the Company in accordance with the amount of consideration that the Company is expected to be entitled to
receive.
①Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed
at collecting the contractual cash flow, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements, that is, 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
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.
②Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow, and
the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and their changes are included in other
comprehensive gains, but impairment losses or gains, exchange gains and losses and interest income calculated
according to the actual interest rate method are included in current profits and losses.
In addition, the Company designated some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company includes the
relevant dividend income of such financial assets in current profits and losses, and the changes in fair value in
other comprehensive gains. 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.
③Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those
measured at fair value and their's changes in financial assets other than financial assets of comprehensive
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
income and classifies them as financial assets measured at fair value and their's changes that are included in
current profits and losses. In addition, the Company designates some financial assets as financial assets
measured at fair value and includes their changes in current profits and losses in order to eliminate or
significantly reduce accounting mismatches during initial recognition. In regard with such financial assets, the
Company adopts fair value for subsequent measurement, and includes changes in fair value into current profits
and losses.
2. Classification and measurement of financial liabilities
Financial liabilities are classified as financial liabilities and other financial liabilities measured at fair value at
the time of initial recognition and their changes are included in the current profits and losses. 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 at fair value, whose changes are included in current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses
include transactional financial liabilities (including derivatives which are financial liabilities) and financial
liabilities designated at fair value at initial recognition and whose changes are included in current profits and
losses.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting, changes in fair value are included in current
profits and losses.
Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk, and when the liabilities are terminated, the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits
and losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such
financial liabilities will result in or expand the accounting mismatch in the profits and losses, the Company shall
include all the profits or losses of such financial liabilities (including the amount of the impact of the changes in
the credit risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition
or formed by its continuous involvement in the transferred financial asset, financial liabilities and financial
guarantee contract of other financial liabilities classified as financial liabilities measured at the amortized cost,
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
measured at the amortized cost for subsequent measurement, recognition has been stopped or amortization of
the profit or loss is included in the current profits and losses.
3. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a
pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has transferred
substantially all the risks and rewards of the asset, or has neither transferred norretained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset,
the asset is recognized according to the extent it exists as financial asset, and correspondent liability is
recognized. The extent of existence refers the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying amount of
the financial asset transferred; and the sum of the consideration received from the transfer and any cumulative
gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred
financial asset is allocated between the part that continues to be recognized and the part that is derecognized,
based on the relative fair value of those parts. The difference between (a) the carrying amount allocated to the part
derecognized; and (b) the sum of the consideration received for the part derecognized and any cumulative gain or
loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is
recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost all of the
risks and rewards of ownership of the financial assets have been transferred if. Has transferred the ownership of
the financial assets of almost all the risks and rewards to the transferee, the derecognition of the financial asset;
retains ownership of the financial assets of almost all of the risks and rewards of financial assets that are not
derecognised; neither transfers nor retains ownership of the financial assets of almost all of the risks and rewards,
then continue to determine whether the enterprise retains control of the assets and the accounting treatment in
accordance with the principles described in the preceding paragraphs.
4.Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall terminate
the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an agreement with
the lender to replace the original financial liabilities by assuming new financial liabilities, and the contract terms
of the new financial liabilities are substantially different from those of the original financial liabilities, it shall
terminate the recognition of the original financial liabilities and at the same time confirm a new financial
liabilities. If the Company substantially amends the 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
new financial liabilities in accordance with the revised terms.
If the financial liabilities (or part thereof) are terminated, the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the
profits and losses of the current period.
5.Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
6.Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. If there is an active market for financial instruments, the
Company will determine their fair value by quoting prices in the active market. Quotes in active markets refer to
prices that are easily obtained from exchanges, brokers, trade associations, pricing service agencies, etc. on a
regular basis, and represent the prices of market transactions that actually occur in fair transactions. For financial
instruments with active market, the Company adopts valuation technology to determine their fair values.
Valuation techniques include reference to prices used in recent market transactions by parties familiar with the
situation and willing to trade, and reference to current fair values of other financial instruments that are
substantially the same, discounted cash flow method, option pricing model, etc. 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. Unallowable values are used if the relevant observable input values
are not available or are not practicable.
7.Our own equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity
instruments by the Company are treated as changes in equity, and transaction costs related to equity
transactions are deducted from equity. The Company does not recognize changes in the fair value of equity
instruments.
11.Notes receivable
The Company shall measure loss preparation for Notes receivable according to the amount of anticipated
credit loss equivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
divided into different combinations:
Items Basis for determining combination
Bank acceptance This combination is a receivable bank acceptance bill.
Commercial acceptance bills This combination is a commercial acceptance bill receivable
12.Accounts Receivable
The Company measures the loss reserve for receivables by an amount equivalent to the expected credit loss
during the duration.
In regard to accounts receivable with significant financing components, the Company shall choose to
measure loss preparation according to the amount equivalent to the expected credit loss within the duration all
the time.
In addition to the accounts receivable for which credit risk is assessed individually, aging is used as the credit
risk characteristic to measure loss reserve.
Items Basis for determining combination
Aging portfolio The credit risk is characterized by the aging of receivables.
13. Receivable financing
For bills receivable and accounts receivable classified as those measured at fair value and whose changes
are included in other comprehensive income, the portion with self-financing period within one year (including
one year) is listed as receivables financing; If the period of self-acceptance is more than one year, it shall be listed
as other creditor's rights investment. For relevant accounting policies, please refer to Note III, (10) "Financial
Instruments" and Note V, (10) "Impairment of Financial instruments ".
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
The Company has measured the impairment loss based on the amount of expected credit losses in the next
12 months or the entire duration, based on whether the credit risk of other receivables has increased
significantly since the initial recognition.
In addition to the other accounts receivable which assesses the credit risk individually, they are divided into
different portfolios based on their credit risk characteristics:
Items Basis for determining combination
Interest receivable This combination is interest receivable
Dividend receivable This combination is dividend receivable
Other receivable This combination is all kinds of daily accounts receivable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
15.Inventory
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
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
16.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its
performance obligations according to the contract, and which is not the right to collect money from customers
unconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contract
assets and liabilities under the same contract are listed in net amount, while contract assets and liabilities under
different contracts are not offset.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
17.Contract assets
(1) Method for determining asset amount related to contract cost
Assets related to contract costs include contract acquisition costs and contract performance costs.
The contract performance cost, that is, the cost incurred by the company for the performance of the contract,
which does not fall within the scope of other accounting standards for business enterprises and meets the
following conditions at the same time, is recognized as an asset for contract performance cost: The cost is
directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses
(or similar expenses), costs explicitly borne by customers, and other costs incurred only because of the contract;
This cost increases the resources of the Company for fulfilling its performance obligations in the future; The cost
is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the company to obtain the contract is
expected to be recovered, is recognized as an asset for contract acquisition cost; If the amortization period of this
asset does not exceed one year, it will be included in the current profits and losses in when it occurs. Incremental
cost refers to the cost that will not happen if the company does not obtain the contract (such as sales
commission, etc.). Other expenses (such as travel expenses that will be incurred regardless of whether the
contract is obtained or not) incurred by the Company in order to obtain the contract are included in the current
profits and losses when they occur, except those explicitly borne by the customer.
(2) Amortization of assets related to contract costs
The assets related to the contract cost shall be amortized on the same basis as the revenue recognition of
goods or services related to the assets, and shall be included in the current profits and losses.
(3) Impairment of assets related to contract cost
If the book value of the asset related to the contract cost is higher than the expected residual consideration
for transferring the goods or services related to the asset minus the estimated cost to be incurred, the company
will make provision for impairment of the excess and recognize it as the asset impairment loss. If the factors of
impairment in previous periods change later, so that the remaining consideration expected to be obtained by
transferring the goods or services related to the asset minus the estimated costs to be incurred is higher than the
book value of the asset, the original provision for impairment of assets shall be reversed and included in the
current profits and losses, but the book value of the asset after reversal shall not exceed the book value of the
asset on the reversal date assuming no accrual for impairment provision.
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.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12
months or the entire duration, based on whether the credit risk has increased significantly since the initial
recognition.
20. Other Creditor's rights investment
Other debt investments are mainly accounted for as bond investments measured at fair value and their
changes are included in other comprehensive income. The Company has measured the impairment loss based on
the amount of expected credit losses in the next 12 months or the entire duration, based on whether the credit
risk has increased significantly since the initial recognition.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
21.Long-term account receivable
None
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 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
net 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 a
t fair value, the difference is recognized in profit or loss, while the long-term equity investment adjustment costs
.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’ interest in
the fair values of the investee’ identifiable net assets at the time of acquisition, no adjustment shall be made to
the initial investment cost. The carrying amount of an long-term equity investment measured using the equity
method is adjusted by the Company's share of the investee's net profit and other comprehensive income, which
is recognised as investment income and other comprehensive income respectively. The carrying amount of an
long-term equity investment measured using the equity method is reduced by profit distribution or cash
dividends announced by the investee. The carrying amount of an long-term equity investment measured using
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
the equity method is also adjusted by the investee's equity movement other than net profit, other
comprehensive income and profit distribution, which is adjusted to capital reserves。The net profit of the
investee is adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial
statements and hence the net profit and other comprehensive income of an investee which does not adopt
accounting policies or accounting period uniform with the Company is adjusted by the Company's accounting
policies and accounting period. The Company's share of unrealised profit or loss arising from related party
transactions between the Company and an associate or joint venture is deducted from investment income.
Unrealised loss arising from related party transactions between the Company and an associate or joint venture
which is associated with asset impairment is not adjusted. Where assets transferred to an associate or joint
venture which form part of the Company's investment in the investee but which does not enable the Company
obtain control over the investee, the cost of the additional investment acquired is measured at the fair value of
assets transferred and the difference between the cost of the additional investment and the book value of the
assets transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture form
an operation, the difference between the consideration received and the book value of the assets transferred in
recognised in profit or loss. Where assets transferred from an associate or joint venture form an operation, the
transaction is accounted for in accordance with CAS 20 - Business Combination, any gain or loss is reocgnised in
profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the long-term equity
investment and other net long-term investments in the investees. Where the Company has obligation to share
additional net loss of the investee, the estimatedshare of loss recognised as accrued liabilities and investment
loss. Where the Company has unrecognised share of loss of the investee when the investee generates net profit,
the Company's unrecognised share of loss is reduced by the Company's share of net profit and when the
Company's unrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is
recognised as investment income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion
of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve
is not sufficient to absorb the difference, the excess are adjusted against 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
income and profit distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the investment,
cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by
equity method or recognition and measurement principles applicable to financial instruments, prior to the
Company's acquisition of control over the investee is treated in the same manner that the investee disposes the
relevant assets or liabilities and recognised in profit or loss proportionate to the disposal. The investee's equity
movement other than net profit, other comprehensive income and profit distribution, as a result of accounting
by equity method, is reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the investee and
the Company continues to have significant influence over the investee after the partial disposal, the investment
in measured by the equity method in the Company's separate financial statements; where the Company's
control over an investee is lost due to partial disposal of investment in the investee and the Company ceases to
have significant influence over the investee after the partial disposal, the investment in measured in accordance
with the recognition and measurement principles applicable to financial instruments in the Company's separate
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.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
23.Investment property
The measurement mode of investment property
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 Estimated residual
Category Depreciation
depreciation （Year） value
House and Building- Straight-line
35 4 2.74
Production method
House and Building-Non- Straight-line
method 40 4 2.4
Production
Decoration of Fixed Straight-line
10 0 10
assets method
Machinery and Straight-line
method 10-14 4 9.60-6.86
equipment
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Transportation Straight-line
8 4 12
equipment method
Straight-line
Electronic equipment 8 4 12
method
Straight-line
Other equipment 8 4 12
method
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.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or
production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its
intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs
incurred during these periods recognized as an expense for the current period until the acquisition, construction
or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization conditions, the
Loan costs should stop capitalization.
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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
formed and the number of similar measurement unit shall be estimated. If the term of economic benefits of the
intangible assets brought for the company is not able to be foreseen, the intangible assets shall be recognized as
that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the following factors
to estimate the service life: ① the normal service life of products produced with the assets, and the acquired
information of the service life of similar assets. ② the estimation of the current stage conditions and the future
development trends in the aspects of technology and craft. ③ the demand of the products produced by the
assets or the offered services in the market. ④ the expectation of actions adopted by current or potential
competitors. ⑤ the expected maintenance expense for sustaining the capacity to economic benefits brought by
the assets and the ability to the relevant expense expected. ⑥ the relevant law provision or the similar limit to
the control term of the assets, such as the licensed use term and the lease term. ⑦ the correlation with the
service life of other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and Review
Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the company, or
the indefinite term of intangible assets recognized as the indefinite service life of intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights, but the
indefinite service life of contract provision or legal provisions. ② unable to judge the term of economic benefits
brought by the intangible assets for the company after the integration of information in the same industry or the
relevant expert argumentation.
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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
corresponding impairment provision shall be withdrawn according to the difference between the book value and
the recoverable amount. The intangible assets with the indefinite service life and without the usable condition
shall be conducted the impairment test every year whether the impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded into the
current profits and losses when occurring. The expenditure for internal research and development project in the
development stage shall be recognized as the intangible assets when the following requirements are
simultaneously met: (1) the completion of the intangible assets is available for use or sale, and feasible in the
technology. (2) the intention to complete the intangible assets and use or sale. (3) the method for the economic
benefits produced by the intangible assets, including the evidence that shows there exists the market for the
products generated from the intangible assets or the intangible assets have the market. The intangible assets are
used internally which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability to use or
sell the intangible assets. (5) the expenditure belong to the development stage of the intangible assets can be
reliably measured.
The specific criteria for the division of the internal research and development projects at the research stage and
the development stage of the company is as follows: (1) the investigation stage planned to obtain the new
technology and knowledge, shall be recognized as the research stage, 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’ 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).
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be averagely
amortize within the benefit period or the specified period. If the long-term unamortized expense can’ 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.
33.Contract liabilities
Contract liabilities refer to the obligation of the Company to transfer goods to customers for the received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company
has obtained the unconditional collection right before the Company transfers the goods to the customer, the
Company will list the received or receivable amount as the contract liability at the earlier of the actual payment
made by the customer and the due date for payment. Contract assets and liabilities under the same contract are
listed in net amount, while contract assets and liabilities under different contracts are not offset. 39. Income
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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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.
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’ 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
39. Revenue
Accounting policies adopted for income recognition and measurement
When the contract between the company and the customer meets the following conditions at the same
time, the income is recognized when the customer obtains the control right of the relevant goods: the parties to
the contract have approved the contract and promised to fulfill their respective obligations; The contract clarifies
the rights and obligations of the parties to the contract related to the transferred goods or services; The contract
has clear payment terms related to the transferred goods; The contract is of commercial nature, that is, the
performance of the contract will change the risk, time distribution or amount of the company's future cash flow;
The consideration that the company is entitled to obtain due to the transfer of goods to customers is likely to be
recovered.
On the commencement date of the contract, the Company identifies each individual performance obligation
in the contract, and distributes the transaction price to each individual performance obligation according to the
relative proportion of the individual selling price of the goods promised by each individual performance
obligation. In determining the transaction price, the influence of variable consideration, significant financing
components in the contract, non-cash consideration, consideration payable to customers and other factors are
considered.
If one of the following conditions is met, the performance obligation will be considered fulfilled within a
certain period of time; otherwise, the performance obligation will be considered fulfilled at a certain time point:
(1) The customer obtains and consumes the economic benefits brought by the company's performance at
the same time;
(2) Customers can control the goods under construction during the performance of the company;
(3) The goods produced during the performance of the Company have irreplaceable purposes, and the
Company has the right to collect payment for the performed part accumulated so far during the whole contract
period.
For the performance obligations performed within a certain period of time, the Company shall recognize the
income according to the performance progress within that period of time, except that those with performance
progress that cannot be reasonably determined. When the performance schedule cannot be reasonably
determined, if the already incurred costs are expected to be compensated, the Company shall recognize the
income according to the already incurred costs until the performance schedule can be reasonably determined.
For the performance obligation performed at a certain time, the Company recognizes the income when the
customer obtains the control right of the relevant goods or services. When judging whether the customer has
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
obtained the control of goods or services, the company considers the following signs:
(1) The Company has the right to collect money now for the goods or services, that is, customers have the
obligation of immediate payment for the goods or services.
(2) The Company has transferred the legal ownership of the goods to the customer, that is, the customer
has the legal ownership of the goods.
(3) The Company has transferred the goods in kind to the customer, that is, the customer has taken
possession of the goods in kind.
(4) The Company has transferred the main risks and rewards of ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards of ownership of the goods.
(5) The customer has accepted the goods or services.
The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
None
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
60
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to
confirm the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable
temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall
recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible
temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in
the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference
related to the investment of subsidiaries, cooperative enterprises and joint ventures if the following
requirements are simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable
future. (2) the taxable income used to offset the deductible temporary difference is possible to be obtained in
the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following transactions as
the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilities
arising from the transactions with the following features: this transaction is not the business combination, and
the transaction doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference
related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following
requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the
temporary difference. (2) the temporary difference is possible to not be reversed 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.
61
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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.
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
(1)Change of main accounting policies
Accounting policy changes caused by implementation of new financial instrument standards
（2） Changes in accounting estimates
No significant changes in accounting estimates have occurred in the current period.
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
The content and reason for change of
Approval process Remarks
accounting policy
In 2017, the Ministry of Finance issued 4 Adopted at the 27th meeting of the 7th http://www.cninfo.com.cn On March
new financial instrument standards Board of Directors 14,2020(Announcement No.:2020-14)
62
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
including the revised Accounting
Standards for Business Enterprises
No.22-Recognition 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）Change of main accounting estimations
□ Applicable √Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases from year 2020
Applicable
Whether need to adjust the balance sheet account at the beginning of the year
√ Yes □No
Consolidated balance sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 409,564,847.52 409,564,847.52
Settlement provision
Outgoing call loan
Transactional financial
830,000,000.00 830,000,000.00
assets
63
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Derivative financial assets
Notes receivable 40,424,601.97 40,424,601.97
Account receivable 365,325,029.38 365,325,029.38
Financing of receivables 17,933,597.98 17,933,597.98
Prepayments 18,445,857.53 18,445,857.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account receivable 12,440,761.13 12,440,761.13
Including：Interest
7,610,043.19 7,610,043.19
receivable
Dividend receivable
Repurchasing of financial
assets
Inventories 391,717,935.12 391,717,935.12
Contract assets
Assets held for sales
Non-current asset due
within 1 year
Other current asset 140,821,609.72 140,821,609.72
Total of current assets 2,226,674,240.35 2,226,674,240.35
Non-current assets：
Loans and payment on
other’s behalf disbursed
Creditor's right investment
Other investment on
bonds
Long-term receivable
Long term share equity
152,209,929.72 152,209,929.72
investment
Other equity instruments
248,781,946.73 248,781,946.73
investment
Other non-current
financial assets
Real estate investment 112,730,320.90 112,730,320.90
Fixed assets 903,229,077.83 903,229,077.83
64
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Construction in progress 839,866,275.92 839,866,275.92
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 36,517,996.34 36,517,996.34
Development expenses
Goodwill
Long-germ expenses to be
2,692,750.67 2,692,750.67
amortized
Deferred income tax asset 5,618,026.43 5,618,026.43
Other non-current asset 3,079,321.10 3,079,321.10
Total of non-current assets 2,304,725,645.64 2,304,725,645.64
Total of assets 4,531,399,885.99 4,531,399,885.99
Current liabilities
Short-term loans
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 241,297,770.64 241,297,770.64
Advance receipts 30,530,117.62 28,180,668.72 -2,349,448.90
Contract liabilities 2,349,448.90 2,349,448.90
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of
securities
Employees’ wage payable 38,556,180.20 38,556,180.20
Tax payable 22,545,550.33 22,545,550.33
Other account payable 152,645,780.14 152,645,780.14
65
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Including：Interest payable
Dividend payable
Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due
within 1 year
Other current liability
Total of current liability 485,575,398.93 485,575,398.93
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
Deferred income 121,264,571.22 121,264,571.22
Deferred income tax
69,944,345.66 69,944,345.66
liability
Other non-current
liabilities
Total non-current liabilities 191,208,916.88 191,208,916.88
Total of liability 676,784,315.81 676,784,315.81
Owners’ equity
Share capital 509,338,429.00 509,338,429.00
Other equity
instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,974,922,248.03 1,974,922,248.03
66
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Less：Shares in stock 16,139,003.40 16,139,003.40
Other comprehensive
119,737,783.31 119,737,783.31
income
Special reserve
Surplus reserves 90,596,923.39 90,596,923.39
Common risk provision
Retained profit 49,307,764.03 49,307,764.03
Total of owner’s equity
belong to the parent 2,727,764,144.36 2,727,764,144.36
company
Minority shareholders’
1,126,851,425.82 1,126,851,425.82
equity
Total of owners’ equity 3,854,615,570.18 3,854,615,570.18
Total of liabilities and
4,531,399,885.99 4,531,399,885.99
owners’ equity
Adjustment statement
The main changes and impacts of the implementation of the new income standards on the Company are as
follows: The Company will reclassify the accounts received in advance with some outstanding performance
obligations as contract liabilities on or after January 1, 2020.
Parent Company Balance Sheet
In RMB
Amount involved in the
Items December 31,2019 January 1,2020
adjustment
Current asset：
Monetary fund 27,979,338.37 27,979,338.37
Transactional financial
650,000,000.00 650,000,000.00
assets
Derivative financial
assets
Notes receivable
Account receivable 522,931.04 522,931.04
Financing of receivables
Prepayments 768,099.94 768,099.94
Other account
17,039,506.00 17,039,506.00
receivable
Including：Interest 7,329,228.31 7,329,228.31
67
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
receivable
Dividend receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due
within 1 year
Other current asset
Total of current assets 696,309,875.35 696,309,875.35
Non-current assets：
Creditor's right investment
Other investment on
bonds
Long-term receivable
Long term share equity
2,102,430,511.88 2,102,430,511.88
investment
Other equity instruments
206,816,952.64 206,816,952.64
investment
Other non-current
financial assets
Real estate investment 107,199,622.80 107,199,622.80
Fixed assets 25,500,695.77 25,500,695.77
Construction in progress 19,552.00 19,552.00
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 659,937.75 659,937.75
Development expenses
Goodwill
Long-germ expenses to be
800,858.17 800,858.17
amortized
Deferred income tax asset 5,466,478.06 5,466,478.06
Other non-current asset
Total of non-current assets 2,448,894,609.07 2,448,894,609.07
Total of assets 3,145,204,484.42 3,145,204,484.42
Current liabilities
Short-term loans
68
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 2,878,936.58 639,024.58 -2,239,912.00
Contract Liabilities 2,239,912.00 2,239,912.00
Employees’ wage
11,910,175.11 11,910,175.11
payable
Tax payable 20,801,961.18 20,801,961.18
Other account payable 119,984,209.60 119,984,209.60
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due
within 1 year
Other current liability
Total of current liability 155,987,026.04 155,987,026.04
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 600,000.00 600,000.00
Deferred income tax
66,953,097.14 66,953,097.14
liability
Other non-current
liabilities
Total non-current liabilities 67,553,097.14 67,553,097.14
Total of liability 223,540,123.18 223,540,123.18
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Owners’ equity
Share capital 509,338,429.00 509,338,429.00
Other equity
instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,589,869,499.36 1,589,869,499.36
Less：Shares in stock 16,139,003.40 16,139,003.40
Other comprehensive
110,764,037.74 110,764,037.74
income
Special reserve
Surplus reserves 90,596,923.39 90,596,923.39
Retained profit 637,234,475.15 637,234,475.15
Total of owners’ equity 2,921,664,361.24 2,921,664,361.24
Total of liabilities and
3,145,204,484.42 3,145,204,484.42
owners’ equity
Note
The main changes and impacts of the implementation of the new income standards on the Company are as
follows: The Company will reclassify the accounts received in advance with some outstanding performance
obligations as contract liabilities on or after January 1, 2020.
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases from year 2020
□ Applicable √ Not applicable
45.Other
None
VI. Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT The taxable turnover 16.00%、13.00%、5.00%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%、16.5%、15%
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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. 15.00%
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 2019 ,High-tech and enterprise certificate No.:
GR201944205666 ,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 Custom
s 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 Technology C
o., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices including col
orful light filter coating and polarizer sheet that comply with the planning for independent development of dome
stic industries may enjoy the preferential policies of exemption from import tariff for the import of raw materials
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
None
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 8,432.52 11,091.94
Bank deposit 177,437,894.00 272,366,495.29
Other monetary funds 30,870,007.94 137,187,260.29
Total 208,316,334.46 409,564,847.52
Including : The total amount of deposit
6,380,553.27 3,272,384.31
abroad
Other notes
① Ending amount of other monetary funds was RMB 163,680,930.25 And deposit an investment of RMB
236,266.53.
71
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
②As of June 30, 2020，The fixed-term deposit balance of money fund is RMB 34,610,054.73 , 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 779,000,000.00 830,000,000.00
the current profits and losses
Including：
Structure deposit 779,000,000.00 830,000,000.00
Including：
Total 779,000,000.00 830,000,000.00
Other note：None
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 43,359,624.18 40,424,601.97
Total 43,359,624.18 40,424,601.97
All bills receivable are bank acceptance bills, and because there is no significant credit risk, no credit impairment
provision is accrued.
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：None
Of which the significant actual write-off accounts receivable:
□ Applicable √ Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
（3）Notes receivable pledged by the Company at the end of the period
Not applicable
（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 Amount of not terminated recognition
Items
the period-end at the period-end
Bank acceptance 89,284,511.43
Total 89,284,511.43
（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
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Propor Amoun Propor value Proport Amoun Proport value
Amount Amount
tion(%) t tion(%) ion(%) t ion(%)
Accrual of bad 1,936,
12,788, 10,852, 12,753,1 10,823, 1,929,27
debt provision by 2.71% 84.86% 066.4 3.22% 84.87%
676.67 610.18 37.41 862.18 5.23
single item 9
Including：
Accrual of bad 435,4
458,681 23,197, 382,700, 19,304, 363,395,
debt provision by 97.29% 5.06% 83,81 96.78% 5.04%
,723.32 913.27 561.55 807.40 754.15
portfolio 0.05
Including：
471,470 100.00 34,050, 437,4 395,453, 100.00 30,128, 365,325,
Total 7.22% 7.62%
,399.99 % 523.45 19,87 698.96 % 669.58 029.38
73
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
6.54
Accrual of bad debt provision by single item: 10,852,610.18 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Dongguan Yaxing Beyond the credit
Semiconductor Co., 2,797,016.81 1,650,239.92 59.00% period for a long time,
Ltd. uncertain recovered.
Beyond the credit
Dongguan Fair LCD
1,698,534.99 1,698,534.99 100.00% period for a long time,
Co., Ltd.
uncertain recovered.
Beyond the credit
Guangdong Ruili Baolai
1,298,965.36 649,482.68 50.00% period for a long time,
Technology Co., Ltd.
uncertain recovered.
Shenzhen Gulida Beyond the credit
Microelectronics Co., 1,029,587.20 978,107.84 95.00% period for a long time,
Ltd. uncertain recovered.
Beyond the credit
Other 5,964,572.31 5,876,244.75 98.52% period for a long time,
uncertain recovered.
Total 12,788,676.67 10,852,610.18 -- --
Accrual of bad debt provision by portfolio: 23,197,913.27 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 458,013,563.82 22,994,725.97 5.02%
1-2 years 668,159.50 203,187.30 30.41%
Total 458,681,723.32 23,197,913.27 --
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） 458,030,961.99
74
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
1-2 years 704,645.92
2-3 years 108,476.48
Over 3 years 12,626,315.60
3-4 years 133,439.29
4-5 years 895,242.68
Over 5 years 11,597,633.63
Total 471,470,399.99
(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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad
debt provision 19,304,807.40 3,893,105.87 23,197,913.27
by portfolio:
Accrual of bad
debt provision 10,823,862.18 28,748.00 10,852,610.18
by single item:
Total 30,128,669.58 3,921,853.87 34,050,523.45
Of which the significant amount of the reversed or collected part during the reporting period :None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Balance in year-end Proportion(%) Bad debt provision
First 172,427,160.60 36.57% 8,621,358.03
Second 56,323,722.65 11.95% 2,816,186.13
Third 44,409,349.53 9.42% 2,220,467.48
Fourth 28,624,747.18 6.07% 1,431,237.36
Fifth 27,535,861.55 5.84% 1,376,793.08
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 329,320,841.51 69.85%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
Other note：None
6.Receivable financing
In RMB
Items Closing balance Opening balance
Note receivable 17,933,597.98
Total 17,933,597.98
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
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
Other note：None
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 12,942,710.16 98.35% 18,234,600.87 98.86%
1-2 years 194,292.29 1.48% 188,517.78 1.02%
2-3 years 9,530.00 0.07% 9,530.00 0.05%
Over 3 years 13,208.88 0.10% 13,208.88 0.07%
Total 13,159,741.33 -- 18,445,857.53 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
On June 30, 2020, there was no large prepayment with an accounting age of more than one year in the balance
of prepayment .
76
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name June 30,2020 Proportion %
First 3,844,784.69 29.22
Second 1,795,386.82 13.64
Third 1,604,402.71 12.19
Fourth 853,318.59 6.48
Fifth 751,681.15 5.71
Total 8,849,573.96 67.24
Other note：None
8.Other receivable
In RMB
Items Closing balance Opening balance
Interest receivable 8,217,934.25 7,610,043.19
Other accounts receivable 5,443,832.93 4,830,717.94
Total 13,661,767.18 12,440,761.13
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 109,425.24
Structure deposit 8,217,934.25 7,500,617.95
Total 8,217,934.25 7,610,043.19
2) Significant overdue interest
As of June 30,2020,No overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
77
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
（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 73,192.60 326,628.25
Export rebate 709,028.48 1,191,949.50
Unit account 16,298,671.39 15,674,175.33
Deposit 2,073,363.99 2,109,061.49
Reserve fund and staff loans 669,432.99 428,019.47
Other 1,474,930.09 1,069,836.88
Total 21,298,619.54 20,799,670.92
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses for
Expected credit Expected credit loss over
Bad Debt Reserves the entire duration Total
losses over the life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at January
1,575,667.61 14,393,285.37 15,968,952.98
1, 2020
Balance as at January
—— —— —— ——
1, 2020 in current
Turn back in the
114,166.37 114,166.37
current period
Balance as at June 30，
1,461,501.24 14,393,285.37 15,854,786.61
2020
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） 3,912,546.56
1-2 years 571,073.49
2-3 years 612,362.92
Over 3 years 16,202,636.57
78
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
3-4 years 1,844,818.50
4-5 years 577,633.07
Over 5 years 13,780,185.00
Total 21,298,619.54
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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad
debt provision 1,575,667.61 114,166.37 1,461,501.24
by single item
Accrual of bad
debt provision 14,393,285.37 14,393,285.37
by portfolio
Total 15,968,952.98 114,166.37 15,854,786.61
Where the current bad debts back or recover significant amounts:None
(4) Other account receivables actually cancel after write-off
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Portion in total Bad debt provision
Name Nature Year-end balance Age other of year-end
receivables(%) balance
First Unit account 11,389,044.60 Over 5 years 51.32% 11,389,044.60
Second Unit account 1,800,000.00 3-4 years 8.11% 1,800,000.00
Within 1 year, 1-3
Third Unit account 1,018,295.37 4.59% 181,045.68
years
Fourth Deposit 980,461.06 Over 5 years 4.42% 490,230.53
Fifth Deposit 592,420.00 Over 5 years 2.67% 592,420.00
Total -- 15,780,221.03 -- 71.11% 14,452,740.81
79
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 271,527,185.13 29,058,383.63 242,468,801.50 212,371,911.48 31,148,714.05 181,223,197.43
Processing
4,701,813.03 4,701,813.03 5,962,105.18 5,962,105.18
products
Goods in
1,618,894.41 48,491.27 1,570,403.14
transit
Finished
150,976,269.58 57,389,369.96 93,586,899.62 135,636,148.29 53,692,060.27 81,944,088.02
product
Semi-finished 127,303,360.12 20,635,187.32 106,668,172.80 130,209,635.92 36,196,938.50 94,012,697.42
Commissioned
21,742,875.87 3,637,965.67 18,104,910.20 30,643,409.60 3,637,965.67 27,005,443.93
materials
Total 576,251,503.73 110,720,906.58 465,530,597.15 516,442,104.88 124,724,169.76 391,717,935.12
(2) Inventory depreciation reserve
In RMB
Increased in current period Decreased in current period
Opening Reversed or
Items Closing balance
balance Accrual collected Write-off Other
amount
Raw materials 31,148,714.05 2,332,142.48 4,422,472.90 29,058,383.63
80
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Finished
53,692,060.27 11,431,280.23 7,733,970.54 57,389,369.96
product
Semi-finished
36,196,938.50 21,711,212.22 37,272,963.40 20,635,187.32
product
Goods in
48,491.27 48,491.27
transit
Commissioned
3,637,965.67 3,637,965.67
materials
Total 124,724,169.76 35,474,634.93 49,477,898.11 110,720,906.58
Reason for recovery
Specific basis for withdrawal of Reason for write-off of provision for
Items of provision for
provision for inventory inventory in this year
inventory in this year
Due to a decline in the market price No Use of relevant materials
of polarizer products in this period,
Raw materials the realizable net value of relevant
materials was lower than their
inventory cost.
Due to a decline in the market price No Selling related finished goods
of polarizer products in this period,
Finished product the realizable net value of relevant
materials was lower than their
inventory cost.
Semi-finished product
Due to a decline in the market price No Selling related finished goods
of polarizer products in this period,
the realizable net value of relevant
materials was lower than their
inventory cost.
Due to a decline in the market price No Selling related finished goods
Goods in transit of polarizer products in this period,
the realizable net value of relevant
materials was lower than their
81
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
inventory cost.
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
10.Contract 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
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
After the deduction of input VAT 153,181,153.73 140,821,609.72
Total 153,181,153.73 140,821,609.72
Other notes：None
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
82
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
□ 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
Increase /decrease
Profits Closing
and Cash
losses Withdr balance
on bonus
Openin awal of of
Investe Additio Decrea investm Other Change or Closing
g impair impair
es nal se in ents compre s in balance
profits Other
balance invest investm Recogni hensive other ment ment
ment ent zed income equity announ
provisio provisio
under ced to
the n n
issue
equity
method
I. Joint ventures
Anhui
Huapen
10,098, -51,447 10,047,
g
833.77 .40 386.37
Textile
Co.,Ltd.
Shenzh
en 129,62 128,64
-974,22
Guanhu 3,072.6 8,851.1
1.54
a 9 5
Printing
83
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
&
Dyeing
Co.,
Ltd.
139,72 138,69
Subtota -1,025,
1,906.4 6,237.5
l 668.94
6 2
2. Affiliated Company
Shenzh
en
Changli
anfa
2,450,6 91,484. 2,542,1
Printing
76.14 11 60.25
&
dyeing
Compa
ny
Jordan
Garme 902,26 -924,09 6,568.8 -15,259
nt 9.19 7.64 4 .61
Factory
Hongko
ng
Yehui
9,135,0 -395,65 381,74 9,121,1
Interna
77.93 0.38 7.73 75.28
tional
Co.,
Ltd.
Subtota 12,488, -1,228, 388,31 11,648,
l 023.26 263.91 6.57 075.92
152,20 150,34
-2,253, 388,31
Total 9,929.7 4,313.4
932.85 6.57
2 4
Other note：None
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
84
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Fuao auto parts co., Ltd.（000030） 8,818,366.14 6,568,923.76
Shenzhen Dailishi Underwear Co., Ltd. 12,315,939.61 12,315,939.61
Union Development Group Co., Ltd. 152,469,200.00 152,469,200.00
Shenzhen Xiangjiang Trade Co., Ltd. 7,474,900.00 7,474,900.00
Shenzhen Xinfang Knitting Co., Ltd. 2,227,903.00 2,227,903.00
Jintian Industry（Group）Co., Ltd.
Shenzhen Jiafeng Textile Industry Co.,
Ltd.
Shenzhen Xieli Auto Co., Ltd. 25,760,086.27 25,760,086.27
Shenzhen South Textile Co., Ltd. 13,464,994.09 13,464,994.09
Changxing Junying Investment
28,500,000.00 28,500,000.00
Partmership
Total 251,031,389.11 248,781,946.73
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for
Amount of being Reasons for
other measured at other
Recognized comprehensive fair value and comprehensive
Accumulating Accumulating
Name dividend income whose changes income
income losses
income transferred to are included in transferred to
retained other retained
earnings comprehensive earning
income
Fuao auto parts
Long-term
co., Ltd. 234,604.42 122,232.17
holding
（000030）
Shenzhen
Dailishi Long-term
500,000.00 9,756,083.35
Underwear Co., holding
Ltd.
Union
Long-term
Development 208,000.00 149,869,200.00
holding
Group Co., Ltd.
Shenzhen
Long-term
Xiangjiang 320,030.40 7,314,900.00
holding
Trade Co., Ltd.
Shenzhen Long-term
156,000.00 1,703,903.00
Xinfang Knitting holding
85
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Co., Ltd.
Jintian Industry
Long-term
（Group）Co., 14,831,681.50
holding
Ltd.
Shenzhen
Jiafeng Textile Long-term
16,800,000.00
Industry Co., holding
Ltd.
Shenzhen Xieli Long-term
21,516,380.83
Auto Co., Ltd. holding
Shenzhen
Long-term
South Textile 11,964,994.09
holding
Co., Ltd.
Changxing
Junying Long-term
Investment holding
Partmership
Total 1,418,634.82 202,125,461.27 31,753,913.67 ——
Other note：None
19.Other non-current assets
Not applicable
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Construction in
Items House, Building Land use right Total
process
I. Original price
1. Balance at
257,183,260.74 257,183,260.74
period-beginning
2.Increase in the
1,277,175.96 1,277,175.96
current period
(1) Purchase
（2）Inventory\Fixed 1,277,175.96 1,277,175.96
86
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
assets\ Transferred from
construction in progress
(3)Increased of Enterprise
Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end 258,460,436.70 258,460,436.70
II.Accumulated
amortization
1.Opening balance 144,452,939.84 144,452,939.84
2.Increased amount of
3,243,096.97 3,243,096.97
the period
(1) Withdrawal 3,243,096.97 3,243,096.97
3.Decreased amount of
216,879.16 216,879.16
the period
（1）Dispose
（2）Other out 216,879.16 216,879.16
4. Balance at
147,479,157.65 147,479,157.65
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
87
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
4. Balance at period-end
IV. Book value
1.Book value at period
110,981,279.05 110,981,279.05
-end
2.Book value at
112,730,320.90 112,730,320.90
period-beginning
(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 850,896,074.15 903,229,077.83
Total 850,896,074.15 903,229,077.83
(1) List of fixed assets
In RMB
Houses & Machinery
Items Transportations Other equipment Total
buildings equipment
I. Original price
1.Opening balance 554,790,414.11 1,019,329,690.87 10,160,884.32 32,219,076.82 1,616,500,066.12
2.Increased amount
527,317.31 620,824.60 1,472,337.85 2,620,479.76
of the period
(1) Purchase 527,317.31 620,824.60 1,472,337.85 2,620,479.76
(2) Transferred fro
m construction in pr
ogress
(3)Increased of
Enterprise
Combination
88
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
3.Decreased
amount of the 247,000.00 27,453.00 274,453.00
period
（1）Disposal 247,000.00 27,453.00 274,453.00
4. Balance at
554,790,414.11 1,019,610,008.18 10,781,708.92 33,663,961.67 1,618,846,092.88
period-end
II. Accumulated
depreciation
1.Opening balance 146,482,472.12 545,861,440.05 2,841,269.42 17,965,170.04 713,150,351.63
2.Increased amount
10,066,551.75 42,987,821.81 416,227.97 1,468,869.28 54,939,470.81
of the period
(1) Withdrawal 10,066,551.75 42,987,821.81 416,227.97 1,468,869.28 54,939,470.81
3.Decrease in the
237,218.80 23,221.57 260,440.37
reporting period
（1）Disposal 237,218.80 23,221.57 260,440.37
4.Closing balance 156,549,023.87 588,612,043.06 3,257,497.39 19,410,817.75 767,829,382.07
III. Impairment
provision
1.Opening balance 120,636.66 120,636.66
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting
period
（1）Disposal
4. Closing balance 120,636.66 120,636.66
IV. Book value
1.Book value of the
398,120,753.58 430,997,965.12 7,524,211.53 14,253,143.92 850,896,074.15
period-end
2.Book value of the
408,187,305.33 473,468,250.82 7,319,614.90 14,253,906.78 903,229,077.83
period-begin
89
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(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
Not applicable
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 955,248,196.39 839,866,275.92
Total 955,248,196.39 839,866,275.92
(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
Industrializatio
n project of
polaroid for
954,824,238.97 954,824,238.97 839,443,318.50 839,443,318.50
super large size
TV
(Line 7)
Other 423,957.42 423,957.42 422,957.42 422,957.42
90
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 955,248,196.39 955,248,196.39 839,866,275.92 839,866,275.92
（2）Changes of significant construction in progress
In RMB
Includi
Capital ng：
isation Curren
Capital
Amou Transf of t
Increas Balanc isation
nt at erred Other Propor Progre interes amoun Source
e at e in of
Name Budget year to decrea tion(% ss of t t of of
this year-e interes
beginn fixed se ) work accum capital funds
period nd t ratio
ing assets ulated ization
（%)
balanc of
e interes
t
Indust
rializat
The
ion
main
projec
body
t of
1,959, 839,44 115,38 954,82 of the
polaroi 48.73
498,40 3,318. 0,920. 4,238. buildin Other
d for %
1.80 50 47 97 g has
super
been
large
cappe
size TV
d
(Line
7)
1,959, 839,44 115,38 954,82
Total 498,40 3,318. 0,920. 4,238. -- -- --
1.80 50 47 97
（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
91
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
Not applicable
26. Intangible assets
(1) Information
In RMB
Non-proprietary
Items Land use right Patent right Software Total
technology
I. Original price
1. Balance at
48,258,239.00 11,825,200.00 2,936,607.54 63,020,046.54
period-beginning
2.Increase in the
853,431.04 853,431.04
current period
(1) Purchase 853,431.04 853,431.04
（2）Internal R & D
（3）Increased of
Enterprise
Combination
3.Decreased amount
of the period
（1）Disposal
4. Balance at
48,258,239.00 11,825,200.00 3,790,038.58 63,873,477.58
period-end
II.Accumulated
amortization
1. Balance at
12,591,751.27 11,825,200.00 2,085,098.93 26,502,050.20
period-beginning
2. Increase in the
447,720.00 302,043.64 749,763.64
current period
92
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(1) Withdrawal 447,720.00 302,043.64 749,763.64
3.Decreased amount
of the period
（1）Disposal
4. Balance at
13,039,471.27 11,825,200.00 2,387,142.57 27,251,813.84
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased amount
of the period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
35,218,767.73 1,402,896.01 36,621,663.74
period -end
2.Book value at
35,666,487.73 851,508.61 36,517,996.34
period-beginning
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
93
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the Increase Decrease
investees or
Opening
the events The merger of Closing balance
balance disposition
formed enterprises
goodwill
Shenzhen
Beauty Century
2,167,341.21 2,167,341.21
Garment Co.,
Ltd.
Shenzhen
Shenfang Import
82,246.61 82,246.61
& Export Co.,
Ltd.
Shenzhen
Shengbo
9,614,758.55 9,614,758.55
Optoelectronic
Technology Co.,
Ltd
Total 11,864,346.37 11,864,346.37
（2）Impairment of goodwill
In RMB
Balance in Increased at this period .Decreased at this period
Investee Closing balance
year-begin
Provision disposition
Shenzhen
2,167,341.21 2,167,341.21
Beauty Century
94
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Garment Co.,
Ltd.
Shenzhen
Shenfang Import
82,246.61 82,246.61
& Export Co.,
Ltd.
Shenzhen
Shengbo
9,614,758.55 9,614,758.55
Optoelectronic
Technology Co.,
Ltd
Total 11,864,346.37 11,864,346.37
29. Long term amortize expenses
In RMB
Amortized
Balance in Increase in this Balance in
Items expenses Other loss
year-begin period year-end
Renovation fee 1,631,423.46 183,409.34 1,448,014.12
Other 1,061,327.21 100,945.26 960,381.95
Total 2,692,750.67 284,354.60 2,408,396.07
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
20,264,822.69 4,567,562.50 17,933,263.39 4,478,077.03
reserves
95
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Unattained internal
2,457,864.47 368,679.67 2,502,421.73 375,363.26
sales profits
Changes in fair value
of available for sale 122,232.17 30,558.06 2,371,674.55 592,918.64
financial assets
Temporary difference
formed by the interest
686,670.00 171,667.50 686,670.00 171,667.50
of share incentive
repurchase
Total 23,531,589.33 5,138,467.73 23,494,029.67 5,618,026.43
(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 202,125,461.26 50,531,365.32 202,125,461.26 50,531,365.32
equity instruments
The difference
between the initial
recognition cost and
62,083,693.36 15,520,923.34 77,651,921.36 19,412,980.34
tax base of long-term
equity investment of
Guanhua Company
Total 264,209,154.62 66,052,288.66 279,777,382.62 69,944,345.66
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
End balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Items deferred income tax
assets or liabilities assets and liabilities at assets or liabilities
assets and liabilities
after off-set period-begin after off-set
Deferred income tax
5,138,467.73 5,618,026.43
assets
Deferred income tax
66,052,288.66 69,944,345.66
liabilities
(4)Details of income tax assets not recognized
In RMB
96
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Items Balance in year-end Balance in year-begin
Deductible temporary difference 145,880,695.37 156,410,415.69
Deductible loss 629,783,473.03 605,506,184.05
Total 775,664,168.40 761,916,599.74
(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
2021 1,128,868.47 1,128,868.47
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 22,594,586.97 22,594,586.97
2029 100,351,965.47 100,351,965.47
2030 24,277,288.98
Total 629,783,473.03 605,506,184.05 --
Other note：None
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book Provision Book value Book Provision Book value
Items balance for balance for
devaluatio devaluatio
n n
3,079,321. 3,079,321.
Advance payment for equipment fund
10 10
3,079,321. 3,079,321.
Total
10 10
Other note：None
97
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
32. Short-term borrowings
（1）Categories of short-term loans
Not applicable
(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 224,275,297.87 238,370,055.75
1-2 years 125,319.05 196,392.86
2-3 years 1,486,921.12 1,691,830.35
3-4 years 49,238.25 37,402.40
4-5 years 37,402.40 35,075.05
Over 5 years 1,002,089.28 967,014.23
Total 226,976,267.97 241,297,770.64
（2）Significant accounts payable that aged over one year
Not applicable
37.Advance account
(1) List of Advance account
In RMB
98
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Items Balance in year-end Balance in year-begin
Within 1 year 22,713,837.75 27,541,644.14
1-2 years
2-3 years
Over 3 years 639,024.58 639,024.58
Total 23,352,862.33 28,180,668.72
(2) Significant advance from customers aging over one year
None
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 2,372,551.70 2,342,917.75
1-2 years 6,531.15 6,531.15
Total 2,379,082.85 2,349,448.90
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term employee
38,556,180.20 77,113,020.47 82,396,880.07 33,272,320.60
benefits
II. Post-employment
3,468,908.25 1,930,529.00 1,538,379.25
benefits
III. Termination benefit 2,985,500.66 2,985,500.66
Total 38,556,180.20 83,567,429.38 87,312,909.73 34,810,699.85
（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,
allowances and 36,751,528.90 68,183,820.87 74,342,872.85 30,592,476.92
subsidies
2.Employee welfare 3,519,842.56 3,519,842.56
99
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
3. Social insurance
764,603.19 310,655.32 453,947.87
premiums
Including：Medical
612,352.02 260,716.62 351,635.40
insurance
Work injury insurance 37,141.01 9,980.99 27,160.02
Maternity insurance 115,110.16 39,957.71 75,152.45
4. Public reserves for
2,831,234.28 2,831,234.28
housing
5.Union funds and
1,804,651.30 1,813,519.57 1,392,275.06 2,225,895.81
staff education fee
Total 38,556,180.20 77,113,020.47 82,396,880.07 33,272,320.60
（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
2,531,567.29 1,040,522.72 1,491,044.57
insurance premiums
2.Unemployment
61,710.88 14,456.20 47,254.68
insurance
3. Annuity payment 875,630.08 875,550.08 80.00
Total 3,468,908.25 1,930,529.00 1,538,379.25
Other note：None
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 430,359.01 2,992,712.57
Enterprise Income tax 4,752,036.65 18,567,808.63
Individual Income tax 485,695.72 441,485.02
City Construction tax 40,032.38 209,489.81
House property tax 1,558,824.88 127,685.17
Educational surtax 27,158.67 149,635.58
Other 59,631.36 56,733.55
Total 7,353,738.67 22,545,550.33
Other note：None
10
0
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Other payable 151,289,669.81 152,645,780.14
Total 151,289,669.81 152,645,780.14
（1) Interest payable
Not applicable
(2) Dividends payable
Not applicable
(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 33,859,305.46 36,025,975.90
Unit account 52,701,920.52 51,891,693.06
Deposit 31,140,665.22 27,258,145.87
Restrictive stock repurchase obligation 7,844,373.00 16,825,673.40
Other 25,743,405.61 20,644,291.91
Total 151,289,669.81 152,645,780.14
(2) Other significant accounts payable with aging over one year
Not applicable
42. Liabilities classified as holding for sale
Not applicable
43. Non-current liabilities due within 1 year
Not applicable
10
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
44.Other current liabilities
Not applicable
45. Long-term borrowing
Not applicable
46.Bond payable
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
Not applicable
（1）Statement of long-term payroll payable
Not applicable
（2）Change of defined benefit plans
Not applicable
50.Predicted liabilities
Not applicable
51.Deferred income
In RMB
Increased this Decreased this
Items Beginning of term End of term Reason
term term
Formation of
Govemment
121,264,571.22 1,190,000.00 6,070,094.81 116,384,476.41 government
Subsidy
subsidy
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 121,264,571.22 1,190,000.00 6,070,094.81 116,384,476.41 --
Details of government subsidies：
In RMB
Amo
unt
of
Amount Other
New cost
transferre income Othe Asset-rel
subsidy dedu
Beginnin d to recorde r End of ated or
Items in cted
g of term non-oper d in the chan term income-r
current in the
ational current ges elated
period curre
income period
nt
perio
d
428,571. 71,428. 357,142. Related
Textile special funds
41 58 83 to assets
Grant funds for TFT-LCD polarizer 3,033,33 649,999 2,383,33 Related
industry project 3.34 .98 3.36 to assets
Grant funds for TFT-LCD polarizer narrow 1,500,00 250,000 1,249,99 Related
line (line 5) project 0.00 .02 9.98 to assets
Purchase of imported equipment and 501,926. 87,545. 414,381. Related
technology 58 10 48 to assets
Innovation and venture capital for 150,000. 25,000. 124,999. Related
TFT-LCD polarier I project 00 02 98 to assets
Shenzhen polarizing materials and
262,500. 25,000. 237,499. Related
Technology Engineering Laboratory
00 02 98 to assets
innovation venture capital
Shenzzhen Engineering laboratory
2,625,00 250,000 2,374,99 Related
polarizing material and technical
0.00 .02 9.98 to assets
engineering
1,575,00 150,000 1,425,00 Related
Capital funding for Technology Center
0.00 .00 0.00 to assets
Subsidy funds to support the introductio 43,164.3 7,194.0 35,970.2 Related
n of advanced technology 1 6 5 to assets
Local supporting funds for TFT-LCD 12,750,0 750,000 12,000,0 Related
polarizer Phase II Project (line 6) 00.00 .00 00.00 to assets
State subsidy for TFT-LCD polarizer Phase 425,000. 25,000. 399,999. Related
II Project (line 6) 00 02 98 to assets
key technology 3,625,00 250,000 3,374,99 Related
research and development projects of 0.00 .02 9.98 to assets
10
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
optical compensation film for polarize
Innovation and venture capital for 8,500,00 500,000 8,000,00 Related
TFT-LCD polarizer Phase II Project (line 6) 0.00 .00 0.00 to assets
Strategic industries Development fund of 21,250,0 1,250,0 19,999,9 Related
Guangdong Province 00.00 00.04 99.96 to assets
Grants of Purchase equipment of 25,500,0 1,499,9 24,000,0 Related
TFT-LCD polarizing film phase II project 00.00 99.99 00.01 to assets
Energy saving transformation grant 56,815.6 56,815.6 Related
0.00
funds 3 3 to assets
1,004,75 55,877. 948,875. Related
Old elevator renovation fund subsidies
2.95 85 10 to assets
Polarization Industrialization Project for
30,000,0 30,000,0 Related
Super Large-sized TVs (Line 7) Central 0.00
00.00 00.00 to assets
Budget Investment
Research & development subsidy for key
2,000,00 2,000,00 Related
technologies of ultra-thin IPS polarizer 0.00
0.00 0.00 to assets
for smart phone terminals
Finance committee of Shenzhen
municipality (R&D of key technology of 5,000,00 1,000,0 6,000,00 Related
0.00
high-performance polarizer for large size 0.00 00.00 0.00 to assets
display panel of 2018N007)
Special Subsidy for Improving
1,033,50 221,465 812,041. Related
Atmospheric Environment Quality in
7.00 .76 24 to assets
Shenzhen
2020 Double subsidies for special
190,000 1,583.3 188,416. Related
technological renovation investment
.00 3 67 to assets
project
121,264, 1,190,0 6,070,0 116,384,
Total
571.22 00.00 94.81 476.41
Other note：
(1).According to the "Notice on National Development and Reform Commission to the General Office of the
textile project management of the special funds" (Faigaiban [2006]2841), on December 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 RMB357,142.83 .
2. 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 SAPO
10
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Photoelectric 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 SAPO Photoelectric for the research and development in
the process of the project of industrialization and the purchase of required software and hardware equipment.
On June 2012 and September 2013, the company received the national grants of RMB 10,000,000.00.. According
to the Notice of Issuing the Governmental Investment Plan for 2011 Regarding Demonstration Project of
High-tech Industrialization Including Specialized Services Such As Disaster Recovery of Financial Information
System issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012) No. 3), the Company
received subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet for TFT-LCD in April
2012. Our company will use 10 years as asset depreciation period for amortization in current period.The other
income in current period is RMB649,999.98. and the balance amount of unfinished final amortization is RMB
2,383,333.36.
3. According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet,
New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), the
Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizer
sheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according to
the depreciation period of relevant assets. The other income in current period is RMB250,000.02 and the
balance amount of unfinished final amortization is RMB1,249,999.98.
4. 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 other income in current period is RMB87,545.10 and the balance
amount of unfinished final amortization is RMB414,381.48.
5. 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 other income in current period is RMB25,000.02 and the balance amount of
unfinished final amortization is RMB124,999.98 .
6. 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 other income in current period is RMB25,000.02 and the balance amount of
unfinished final amortization is RMB237,499.98 .
7. According to the Approval of Application of SAPO Photoelectric 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 SAPO Photoelectric
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
10
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
by itself. the Company planned to amortize the subsidy over 10 years according to the depreciation period of
relevant assets. The other income in current period is RMB250,000.02 and the balance amount of unfinished
final amortization is RMB2,374,999.98 .
8. 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 Other income in
current period is RMB150,000.00 and the balance amount of unfinished final amortization is RMB1,425,000.00.
9.On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB 1
43,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The other income in current period is RMB7,194.06
and the balance amount of unfinished final amortization is RMB35,970.25.
10. 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, The other income in current
period is RMB750,000.00 and the balance amount of unfinished final amortization is RMB12,000,000.00.
11. 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 25,000.02 was
included into other incomes in the current period and the ending outstanding balance was RMB399,999.98.
12. 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
RMB3,374,999.98.
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,
RMB500,000.00 元 was included into other incomes in the current period and the ending outstanding balance
was RMB8,000,000.00.
14. 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
10
6
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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, RMB1,250,000.04 was included into other incomes in the current period and the
ending outstanding balance was RMB1,250,000.04.
15. 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 1,499,999.99
was included into other incomes in the current period and the ending outstanding balance was RMB
24,000,000.01.
16. 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
RMB0.00 at the current period, the ending balance without amortization was RMB56,815.63.
17. In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the company
received 160,800.00 yuan for the old elevator upgrade subsidy in 2018,which was apportioned according to the
depreciation period of the relevant assets. The current period was included in other income of 115,760.00 yuan,
and the unassessed balance at the end of the period was 986,836.67 yuan. Subsidiaries that run property
management business were subsidized by RMB 164,580.00 for updating and transforming old and obsolete
elevators this year and this subsidy was income-related; RMB55,877.85 was included into the operating income
in the current period and the ending outstanding balance was RMB948,875.10.
18. 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.
19. 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 Photoelectric
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.
10
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
20. 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 Photoelectric Co., Ltd. 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 1,000,000.00 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.
21. According to the Measures of Shenzhen Municipality on Subsidy for Improving Atmospheric
Environmental Quality (2018-2020) (SRHG [2018] No.2), in December 2019, the Company received a subsidy of
1,033,507.00 yuan from Shenzhen Municipal Human Settlements Committee. The Company completed the
transformation of the relevant assets into fixed assets in December 2019. The Company will allocate the relevant
assets according to their depreciation years in January 2020, The Company was granted with a financial subsidy
of RMB 1,000,000.00 this year. The current period is charged to the current profit and loss of 221465.76 yuan，
the ending balance without amortization was RMB812,041.24.
22. According to the Shenzhen Action Plan on Implementing Technical Transformation Multiplication Plan to
Expand Effective Industrial Investment (2017-2020)" (SFB [2017] No.22) and Shenzhen's Several Measures on
Implementing Technical Transformation Multiplication Plan to Expand Effective Industrial Investment (SFBG [2017]
No.9), in June 2020, the company received the first subsidy of 190,000.00 yuan for the special technical
transformation investment project of technical transformation multiplication in 2020, which was allocated
according to the depreciation period of related assets of 10 years. Other income of 1,583.33 yuan was included in
the current period, and the undistributed balance at the end of the period was 188,416.67 yuan.
52. . Other non-current liabilities
Not applicable
53.Stock capital
In RMB
Changed（+，-）
Year-beginni Balance in
Issuance of Capitalizatio
ng balance Bonus shares Other Subtotal year-end
new share n of public
reserve
Total of
509,338,429. -1,503,240.0 -1,503,240.0 507,835,189.
capital
00 0 0 00
shares
Other note：
On February 26, 2020, the Company repurchased and cancelled the restricted stocks held by the resigned
incentive objects, thus reducing the share capital by 69，900 yuan.
On April 10, 2020, the Company repurchased and cancelled the second restricted stocks that did not meet
10
8
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
the conditions for lifting the restrictions on sales and the restricted stocks held by the incentive objects who left
the company totaled 1,433,340 shares, and the share capital decreased by 1,433,340.00 yuan.
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, including preferred shares, perpetual
bonds, etc. at the end of the reporting period
Not applicable
(2)Movement of the outstanding other financial instruments, including preferred shares, perpetual bonds, etc.
at the end of the reporting period
Not applicable
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the Year-end balance
period current period
Share premium 1,839,805,031.94 7,110,325.20 1,832,694,706.74
Other 135,117,216.09 135,117,216.09
Total 1,974,922,248.03 7,110,325.20 1,967,811,922.83
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting
period:
The company reduced its capital reserve (capital premium) by 7,110,325.20 yuan due to the cancellation of
restricted stock repurchase.
56.Treasury stock
In RMB
Decrease in the
Items Year-beginning balance Increase in the current Year-end balance
current period
Treasurpy stock 16,139,003.40 8,613,565.20 7,525,438.20
Total 16,139,003.40 8,613,565.20 7,525,438.20
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting
period:
This year, 1,503,240 shares were repurchased and cancelled, and the treasury shares decreased by 8,613,565.20
yuan.
57. Other comprehensive income
10
9
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
In RMB
Amount of current period
Less：
Less：
Prior
Amount
period
transferred
included
into profit
in other
and loss in After-tax After-tax
Amount composi Less： Year-e
Year-begi the current attribut attribut
incurred te Income nd
Items nning period that e to the e to
before income tax balanc
balance recognied parent minority
income transfer expense e
into other compan sharehol
tax to s
comprehe y der
retained
nsive
income
income in
in the
prior
current
period
period
1. Other comprehensive income 119,87
118,183,6 2,249,4 562,360. 1,687,08
that cannot be reclassified in 0,740.
58.54 42.38 58 1.80
the loss and gain in the future 34
Changes in fair value of 119,87
118,183,6 2,249,4 562,360. 1,687,08
investments in other equity 0,740.
58.54 42.38 58 1.80
instruments 34
2.Other comprehensive income
1,554,124 388,316 388,316 1,942,
reclassifiable to profit or loss in
.77 .57 .57 441.34
subsequent periods
Translation differences of
1,554,124 388,316 388,316 1,942,
financial statements
.77 .57 .57 441.34
denominated
Total of other comprehensive 121,81
119,737,7 2,637,75 562,360. 2,075,39
income 3,181.
83.31 8.95 58 8.37
68
Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of arbitraged items for
adjustment:
58. Special reserves
Not applicable
59. Surplus reserves
In RMB
11
0
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Items Year-beginning balance Increase in the current Decrease in the Year-end balance
period current period
Statutory surplus
90,596,923.39 90,596,923.39
reserve
Total 90,596,923.39 90,596,923.39
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
49,307,764.03 -57,774,473.41
year beginning
Retained earnings after adjustments at the year
49,307,764.03 -57,774,473.41
end
Add: Net profit attributable to owners of the
719,734.74 7,832,287.98
Company for the period
Retained profits at the period end 50,027,498.77 -49,942,185.43
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the
affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 853,157,761.73 758,822,814.42 1,006,315,551.63 938,514,710.11
Other business 3,155,587.01 2,085,489.19 2,547,743.87 2,072,800.62
11
1
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 856,313,348.74 760,908,303.61 1,008,863,295.50 940,587,510.73
Income-related information: None
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period, the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan.
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Consumption tax 0.00 0.00
Urban construction tax 293,203.50 290,794.73
Education surcharge 208,749.85 212,086.40
Resource tax 0.00 0.00
Property tax 1,431,139.71 2,826,536.51
Land use tax 50,266.26 98,031.18
vehicle and vessel usage tax 0.00 3,960.00
Stamp tax 700,759.15 458,231.50
Other 5,609.59 7,856.46
Total 2,689,728.06 3,897,496.78
Other note：None
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 3,554,124.69 1,605,556.15
Transportation changes 4,551,167.40 2,580,690.13
Exhibition fee 0.00 131,576.37
Business expenses 193,747.29 187,361.86
Samples and product loss 305,048.70 359,519.68
Property insurance 0.00 2,231,202.83
Sell 4,217,847.51 27,358.27
Travel expenses 388,231.96 12,700.24
Other 170,753.73 233,838.99
11
2
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 13,380,921.28 7,369,804.52
Other note：None
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 29,847,030.96 22,919,081.61
Depreciation of fixed assets 4,973,342.05 6,383,207.78
Water and electricity 893,936.96 1,281,518.80
Intermediary organ 1,931,057.09 4,393,993.81
Intangible assets amortization 749,763.64 689,491.93
Travel expenses 232,235.49 738,353.90
Office expenses 429,662.27 342,201.90
Business entertainment 150,393.20 196,500.00
Lawsuit expenses 30,953.77 465,456.54
Repair charge 318,416.19 1,031,667.72
Property insurance 91,409.02 102,845.11
Low consumables amortization 22,644.20 18,322.00
Board fees 46,687.88 1,341.50
Rental fee 776,298.48 674,331.08
Other 3,853,634.46 3,663,566.00
Tax 44,347,465.66 42,901,879.68
Other note：None
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Wage 5,751,277.54 6,498,554.63
Material 16,679,205.26 10,185,129.50
Depreciation 1,470,406.20 1,371,404.00
Fuel & Power 553,582.61 763,053.12
Travel expenses 58,048.90 201,113.88
11
3
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Other 48,530.44 153,133.07
Total 24,561,050.95 19,172,388.20
Other note：None
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 221,034.71 3,783,883.97
Interest income -1,738,185.54 -15,744,104.66
Exchange loss 1,579,207.02 9,972,336.73
Fees and other 1,699,519.77 1,257,196.02
Total 1,761,575.96 -730,687.94
Other note：None
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 13,045,221.53 11,035,139.06
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns
-2,253,932.85 -1,614,057.55
accounted for by equity method
Investment income from the disposal of
518,152.41 0.00
long-term equity investment
Dividend income earned during investment
1,418,634.82 1,408,000.00
holdings in other equity instruments
Structured deposit interest 14,249,971.25
Total 13,932,825.63 -206,057.55
Other note：None
69.Net exposure hedging income
Not applicable
11
4
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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 114,166.37 310,848.71
Loss of bad accounts receivable -3,921,853.87 2,022,916.27
Total -3,807,687.50 2,333,764.98
Other note：None
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and
Impairment of contract performance -35,474,634.93 -21,259,451.35
costs
Total -35,474,634.93 -21,259,451.35
Other note：None
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
I.Gains & losses on foreign investment in
12,301,144.92
fixed assets
II.Gains& losses on the disposal of fixed
-6,837.44 -64,458.67
assets
Total -6,837.44 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
Other 20,431.28 213,415.65 20,431.28
11
5
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Return insurance settlement
4,033,846.00
income
Total 20,431.28 4,247,261.65 20,431.28
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
3,275.19 3,275.19
loss
Other 103,135.58 6,092.62 103,135.58
Total 106,410.77 6,092.62 106,410.77
Other note：None
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 5,341,193.75 9,599,442.08
Deferred income tax expense -82,801.88 173,565.75
Total 5,258,391.87 9,773,007.83
(2)Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits -3,732,788.98
Income tax computed in accordance with the applicable tax
-933,197.25
rate
Effect of different tax rate applicable to the subsidiary
2,397,975.56
Company
Influence of income tax before adjustment 39,310.93
Influence of non taxable income -229,658.71
Impact of non-deductible costs, expenses and losses 563,317.39
Affect the use of deferred tax assets early unconfirmed
-119,013.34
deductible losses
The current period does not affect the deferred tax assets 3,684,886.27
11
6
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
recognized deductible temporary differences or deductible
loss
Impact of income tax relief preferences -145,228.98
Income tax expense 5,258,391.87
77. Other comprehensive income
Refer to the notes 57
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
Interest income and other（Not including
30,410,217.36 18,080,774.86
financing product）
Letter of Credit Deposit 50,473,165.17
Government Subsidy 10,525,545.03 11,035,139.06
Total 91,408,927.56 29,115,913.92
Note to other cash received in connection with operating activities: None
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Payment of credit deposit 63,184,256.28 4,906,692.00
Other 20,828,454.70 27,087,370.19
Total 84,012,710.98 31,994,062.19
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products,
1,711,990,437.06 620,264,450.94
principal and income
L/C margin for purchase of line 7
100,799,633.00
equipment
Total 1,812,790,070.06 620,264,450.94
11
7
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit investment 1,654,000,000.00 985,495,790.87
Total 1,654,000,000.00 985,495,790.87
Note to other Cash paid related to other investment activities： None
（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
8,981,300.40 11,448,442.40
incentive object
Total 8,981,300.40 11,448,442.40
Note to other Cash paid related with financing activities： None
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 -8,991,180.85 -5,726,853.88
Add: Impairment loss provision of assets 39,282,322.43 -14,622,141.27
Depreciation of fixed assets, oil and gas
54,769,598.66 55,627,659.43
assets and consumable biological assets
Amortization of intangible assets 749,763.64 689,491.93
Amortization of Long-term deferred
284,354.60 350,578.98
expenses
11
8
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Loss on disposal of fixed assets, intangible
assets and other long-term deferred 6,837.44 -12,236,686.25
assets
Loss on scrap of fixed assets 3,275.19
Financial cost 221,034.71 -730,687.94
Loss on investment 13,932,825.63 206,057.55
Decrease in deferred income tax assets 479,558.70 348,251.61
Increased of deferred income tax
-3,892,057.00
liabilities
Decrease of inventories -73,812,662.03 -63,857,296.55
Decease of operating receivables -86,494,322.83 110,200,333.49
Increased of operating Payable -44,293,172.26 -46,422,344.75
Net cash flows arising from operating
-135,619,475.23 23,826,362.35
activities
II. Significant investment and financing
-- --
activities that without cash flows:
3．Movement of cash and cash
-- --
equivalents：
Ending balance of cash 173,706,279.73 255,546,268.35
Less: Beginning balance of cash
268,646,588.18 1,133,574,235.22
equivalents
Net increase of cash and cash equivalents -94,940,308.45 -878,027,966.87
(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 173,706,279.73 268,646,588.18
Including：Cash at hand 8,432.52 11,091.94
Demand bank deposit 173,461,580.68 268,424,080.67
Demand other monetary funds 236,266.53 211,415.57
11
9
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
III. Balance of cash and cash equivalents at
173,706,279.73 268,646,588.18
the period end
Other note：None
80. Note of statement of changes in the owner's equity
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:
Not applicable
81. The assets with the ownership or use right restricted
In RMB
Book value at the end of the reporting
Items Cause of restriction
period
Monetary fund 30,633,741.41 Deposit for L/C
Total 30,633,741.41 --
Other note：None
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds -- --
Including：USD 976,292.51 7.07950 6,911,662.83
Euro
HKD 65.00 0.91338 59.37
Yen 18,740,661.00 0.06581 1,233,285.42
Account payable -- --
Including：USD 11,711,660.55 7.07950 82,912,700.87
Euro
HKD 278,280.00 0.91338 254,180.95
Long-term borrowing -- --
Including：USD
Euro
HKD
Other receivable
Including：USD 37,399.02 7.07950 264,766.36
12
0
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Yen
Other payable 2,202,900.00 0.06581 144,968.45
Including：USD 676,686.00 7.07950 4,790,598.54
HKD 1,986,068.33 0.91338 1,814,098.81
Yen
Euro
Account payable
Including：USD 4,902,180.15 7.07950 34,704,984.37
Yen 1,389,977,850.05 0.06581 91,471,662.36
Other note：None
(2) Note to overseas operating entities, including important overseas operating entities, witch 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 Deferred income 71,428.58
Grant funds for TFT-LCD
13,000,000.00 Deferred income 649,999.98
polarizer industry project
Grant funds for TFT-LCD
polarizer narrow line (line 5) 5,000,000.00 Deferred income 250,000.02
project
Shenzzhen Engineering
laboratory polarizing material 5,000,000.00 Deferred income 250,000.02
and technical engineering
Procurement of imported
equipment and technical 1,750,902.00 Deferred income 87,545.10
subsidies
Municipal Research and 3,000,000.00 Deferred income 150,000.00
12
1
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Development Centre (TRC)
grants
Shenzhen polarizing
materials and Technology
500,000.00 Deferred income 25,000.02
Engineering Laboratory
innovation venture capital
Pingshan New District
Development and Finance 500,000.00 Deferred income 25,000.02
Bureau special support funds
Shenzhen to encourage the
introduction of advanced 143,881.00 Deferred income 7,194.06
technology import funding
Local supporting funds for
TFT-LCD polarizer Phase II 15,000,000.00 Deferred income 750,000.00
Project (line 6)
Production plant and
40,000,000.00 Deferred income 1,999,999.98
equipment (line 6)
Innovation and venture
capital for TFT-LCD polarizer 500,000.00 Deferred income 25,000.02
Phase II Project (line 6)
key technology
research and development
projects of optical 5,000,000.00 Deferred income 250,000.02
compensation film for
polarizer
Strategic industries
Development fund of 5,000,000.00 Deferred income 1,250,000.04
Guangdong Province
Government subsidies
356,671.43 Deferred income 356,671.43
related to income
Industrialization Project of
Polarizer for Ultra Large Size 30,000,000.00 Deferred income 0.00
TV (Line 7)
Shenzhen Standard Special
966,000.00 Deferred income 966,000.00
subsidy
Research & development
subsidy for key technologies
2,000,000.00 Deferred income 0.00
of ultra-thin IPS polarizer for
smart phone terminals
Finance committee of 6,000,000.00 Deferred income 0.00
12
2
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Shenzhen municipality (R&D
of key technology of
high-performance polarizer
for large size display panel of
2018N007)
Atmosphere Environmental
Quality Improvement Special 1,033,507.00 Deferred income 221,465.76
Fund Subsidy Agreement
2020Subsidies for technical
190,000.00 Deferred income 1,583.33
reconstruction projects
Old elevator renovation fund
325,380.00 Deferred income 55,877.86
subsidies
Electricity subsidies 255,550.00 Other income 255,550.00
Epidemic prevention
2,744,803.29 Other income 2,744,803.29
subsidies
Pingshan Finance Bureau
2018 Corporate Harmonious 1,000,000.00 Other income 1,000,000.00
Relationship Award Fund
Shenzhen Science and
Technology Innovation
1,278,000.00 Other income 1,278,000.00
Commission 2018 Enterprise
R&D Funding
Shenzhen Water Affairs
Bureau's 2019 Water Saving 374,102.00 Other income 374,102.00
Carrier Award Fund
Total 13,045,221.53
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
None
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Not applicable
12
3
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(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
(6) Other note
Not applicable
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
12
4
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.) caused by
other reasons and relevant information:
Not applicable
6.Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Registered Business Share-holding ratio
Subsidiary Main operation Acquired way
place nature Directly Indirectly
Shenzhen Lishi
Domestic
Industry Establish
Shenzhen Shenzhen trade, Property 100.00%
Development
Management
Co., Ltd
Accommodatio Establish
Shenzhen n, restaurants,
Shenzhen Shenzhen 100.00%
Huaqiang Hotel business
center;
Shenfang
Property Property Establish
Shenzhen Shenzhen 100.00%
Management Management
Co., Ltd.
Production of Establish
Shenzhen
fully electronic
Beauty Century
Shenzhen Shenzhen jacquard 100.00%
Garment Co.,
knitting whole
Ltd.
shape
Shenzhen
Polarizer
Shengbo
Ophotoelectric Shenzhen Shenzhen production and 60.00% Purchase
Technology Co., sales
Ltd
12
5
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Shenzhen
Shenfang Operating Establish
Shenzhen Shenzhen 100.00%
Import & import and
export Co., Ltd. export business
Shengtou Establish
Production and
(Hongkong) Hongkong Hongkong sales of 100.00%
Co.,Ltd. polarizer
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee, and holding more than half voting
rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation, the control basis is: None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss
Holding proportion of Dividend declared to Closing balance of
attributable to
Name non-controlling non-controlling non-controlling
non-controlling
interest interest interest
interest
Shenzhen Shengbo
Ophotoelectric 40.00% -9,710,915.59 1,117,140,510.23
Technology Co., Ltd
Other note：None
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Curren Non-c Curren Non-c
Subsidi Curren Non-c Total Curren Non-c Total
Total t urrent Total t urrent
aries t urrent liabiliti t urrent liabiliti
assets liabiliti Liabilit assets liabiliti Liabilit
assets assets es assets assets es
es ies es ies
Shenz
hen
Sheng 1,361, 1,839, 3,201, 308,44 115,02 423,46 1,455, 1,778, 3,233, 312,41 119,77 432,19
bo 796,54 533,42 329,97 8,333. 1,642. 9,976. 718,29 011,92 730,22 9,750. 4,431. 4,182.
Ophot 2.29 8.67 0.96 70 86 56 5.17 5.06 0.23 90 23 13
oelectr
ic
12
6
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Techn
ology
Co.,
Ltd
In RMB
Current term Last term
Total Cash flow Total Cash flow
Subsidiarie
Operating comprehen from Operating comprehen from
s Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Shenzhen
Shengbo
Ophotoele 802,362,70 -28,210,56 -28,210,56 -114,179,3 893,168,31 -35,069,02 -35,069,02 73,481,662
ctric 3.39 4.14 4.14 79.34 2.79 3.71 3.71 .86
Technology
Co., Ltd
Other note：None
(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
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
12
7
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
associates
Shenzhen
Guanhua Property
Shenzhen Shenzhen 50.16% Equity method
Printing & leasing
Dyeing Co., Ltd
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the voting
right ratio: None
Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of voting
rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Shenzhen Guanhua Printing & Dyeing Shenzhen Guanhua Printing & Dyeing
Co., Ltd Co., Ltd
Current assets 17,443,819.49 10,286,534.45
Non-current assets 255,457,678.25 254,848,270.68
Total assets 272,901,497.74 265,134,805.13
Current liabilities 19,983,109.96 10,815,587.15
Non-current liabilities 40,063,433.44 39,522,035.69
Total liabilities 60,046,543.40 50,337,622.84
Attributable to shareholders of the
212,854,954.34 214,797,182.29
parent company
Share of net assets calculated by stake 106,768,045.10 107,742,266.64
--Goodwill 21,595,462.44 21,595,462.44
--Other 285,343.61 285,343.61
Book value of equity investment in joint
128,648,851.15 129,623,072.69
ventures
Operating income 5,729,179.52 0.00
Financial expenses -20,457.73 0.00
Income tax expenses 1,130,362.67 0.00
Net profit -1,942,227.95 -1,037,556.84
Total comprehensive income -1,942,227.95 -1,037,556.84
(3) Main financial information of significant associated enterprise
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture： -- --
Total amount of the pro rata calculation of
10,047,386.36 10,098,833.77
the following items
Total amount of the pro rata calculation of
-- --
the following items
-- Net profit -51,447.41 -912,673.03
-- Total comprehensive income -51,447.41 -912,673.03
Associated enterprise： -- --
Total book value of the investment 11,648,075.93 12,488,023.26
Total amount of the pro rata calculation of
-- --
the following items
--Net profit -1,228,263.90 -1,243,075.64
--Other Comprehensive income 388,316.57 807,241.54
--Total comprehensive income -839,947.33 -435,834.10
(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
12
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank
deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the
receivables, the company has developed the relevant policies to control the credit risk, and set up the
corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of
debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the
company shall regularly monitor the debtor’s credit history. With regard to the bad credit record for the debtor, the
company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks
within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments
affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
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,
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
Items Fir value
Fir value measurement Fir value measurement
measurement items Total
items at level 2 items at level 3
at level 1
I. Consistent fair value
-- -- -- --
measurement
(1) Transactional
779,000,000.00 779,000,000.00
Financial Asset
1. Financial assets
measured at fair value 779,000,000.00 779,000,000.00
through profit or loss
（2）1. Financial assets
measured at fair value 779,000,000.00 779,000,000.00
through profit or loss
（3）Other1. Financial
assets measured at fair
8,940,598.31 242,090,790.80 251,031,389.11
value through profit or
loss
II Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The fair value of the Fuao Stoke held by the Company at the end of the period is measured based on the
closing price of Shenzhen Stock Exchange on June 30, 2020.
3. Items measured based on the continuous or uncontinuous level 2nd fair value, valuation technique as used,
nature of important parameters and quantitative information
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
4. Items measured based on the continuous or uncontinuous level 3rd fair value, valuation technique as used,
nature of important parameters and quantitative information
1. Financial assets measured at fair value and whose changes are included in the profits and losses of the
current period are bank structured deposits held by the Company, which are measured at fair value based on the
principal amount due to their short maturity;
2. Accounts receivable financing is a bank acceptance bill with a short face value and a face value close to
the fair value, which is measured at the face value as the fair value;
3. Investment in other equity instruments is held by the Company Investment in non-tradable equity
instruments is mainly valued and measured by market method, asset-based method and income method. Among
them: Shenzhen Jiafeng Textile Industry Co., Ltd. and Jintian Industry (Group) Co., Ltd. faced with a operating
environment and operating conditions and financial status, so the Company uses zero yuan as a reasonable
estimate of fair value for measurement; Changxing Junying Equity Investment Partnership (Limited Partnership)
has no significant changes in its operating environment, operating conditions and financial status, so the
Company measures the investment cost as a reasonable estimate of fair value.
5. Continuous third-level fair value measurement items, adjustment information between initial and final book
values and sensitivity analysis of un-observable parameters
Not applicable
6. Continuous fair value measurement items, the conversion between different levels in the current period, the
reasons for the conversion and the policy for determining the conversion time
Not applicable
7. Change of valuation technique incurred in the current period and cause of such change
Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicable
9.Other
None
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
The parent The parent
Name Registered address Nature Registered capital company of the company of the
Company's Company’s vote
shareholding ratio ratio
Equity
18/F, Investment
Shenzhen investment ,
Building, Shennan RMB 27,649
Investment Real-estate 45.96% 45.96%
Road, Futian million
Holdings Co.,Ltd. Development and
District, Shenzhen
Guarantee
Note to the parent company:
The company is authorized and approved to be state-owned independent company by Shenzhen Government,
and it Executes financial contributor function on state-owned enterprise within authorization scope.
Therefore, the Company’s ultimate controller is Shenzhen Investment Holdings Co., Ltd.
Other note：None
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 Dailishi Underwear Co., Ltd. Sharing Company
4.Other Related parties information
Other related party Relationship to the Company
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
Hangzhou Jinjiang Group Co., Ltd.
The controlling party of SAPO Shareholder
Kunshan Zhiqimei Material Technology Co., Ltd. Sharing Company of Hangzhou Jinjiang Group Co., Ltd.
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Shenzhen Guanhua Printing & Dyeing 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
Approval trading Whether over the
Related party Content Current amount Last amount
limit trading limit(Y/N)
Kunshan Zhiqimei
Material Purchasing
101,405,636.84 267,440,000.00 No 58,479,328.60
Technology Co., polarizer
Ltd.
Related transactions on sale goods and receiving services
In RMB
Content of related
Related parties Amount of current period Amount of previous period
transaction
Shenzhen Tianma
Sales polarizer sheet 800,866.29 740,904.84
Microelectronics Co., Ltd.
Kunshan Zhiqimei Material
Sales polarizer sheet 78,432,195.79 79,108,319.24
Technology Co., Ltd.
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Not applicable
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
The annual lending
Printing & Dyeing Co., 3,806,454.17 July 30,2019 July 30,2020
rate is 0.30%
Ltd.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(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
Rewards for the key management
3,067,183.00 3,136,527.00
personnel
(8) Other related transactions
None
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 Balance of Book Balance of Book Bad debt Provision
Shenzhen Tianma
Account
Microelectronics 493,132.55 24,656.63 733,038.52 36,651.93
receivable
Co., Ltd.
Kunshan Zhiqimei
Account Material
56,323,722.65 2,816,186.13 53,893,840.80 2,694,692.04
receivable 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
Shenzhen Dailishi
Other Account
Underwear Co., 0.00 0.00 404,780.23 20,239.01
receivable
Ltd.
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Kunshan Zhiqimei Material 60,914,052.12 56,245,028.58
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Technology Co., Ltd.
Shenzhen Dailishi Underwear
Other payable 605,758.62 0.00
Co., Ltd.
Shenzhen Xinfang Knitting
Other payable 244,789.85 244,789.85
Co., Ltd.
Shenzhen Changlianfa
Other payable 1,580,949.95 1,580,949.95
Printing & dyeing Co., Ltd.
Other payable Yehui International Co.,Ltd. 1,224,163.03 1,216,719.38
Other payable SAPO （Hongkong）Co., Ltd. 315,000.00 315,000.00
Shenzhen Guanhua Printing
Other payable 3,811,053.20 3,811,053.20
& dyeing Co., Ltd.
7. Related party commitment
Not applicable
8.Other
None
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
1,503,240.00
current period
The scope of executive price of the company’s outstanding share
options at the end of the period and the remaining term of the 0
contract
The scope of executive price of the company ’ s other equity
instruments at the end of the period and the remaining term of the 5.73yuan/shares，0.5 year
contract
Other note
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’
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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 rate of operating revenue in 2018
The first restriction lifting period compared with 2016 is not less than 70%, and is not
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 of operating revenue in 2019
The second restriction lifting period compared with 2016 is not less than 130%, and is not
lower 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 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 of operating revenue in 2020
The third restriction lifting period is not less than 200% compared to 2016, and is not
lower than 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.
On January 16, 2020, the Company convened the first extraordinary shareholders' meeting in 2020 to
consider and pass the Proposal on Repurchase and Cancellation of Some Restricted Shares and agreed to
repurchase and cancel 69,900 shares of restricted shares held by 3 original incentive objects who left the
13
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
company for personal reasons at a repurchase price of 5.73 yuan per share.
On March 12, 2020, according to the resolutions of the 27th meeting of the 7th Board of Directors and the
19th meeting of the 7th Board of Supervisors, the company repurchased and cancelled 1,313,340 restricted
stocks that failed to meet the conditions for lifting the restricted sales in the second phase, and repurchased and
cancelled 120,000 restricted stocks that had been granted to the 3 resigned incentive objectives but had not yet
been released from sales restriction, and repurchased and cancelled 1,433,340 restricted stocks in total.
On June 8, 2020, according to the resolution of the 30th meeting of the 7th Board of Directors of the
Company, the Company repurchased and cancelled 57,150 restricted stocks which had been granted but not
released from sales restriction, and 5,760 restricted stocks held by one original incentive object who resigned due
to retirement, totaling 62,910 restricted stocks. The industrial and commercial change registration and other
related procedures for this capital reduction have not yet completed, and the ending share capital still includes
62,910 shares repurchased as mentioned above.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
Determination method of the fair value of equity instruments on The closing price of the company's stock on grant date - grant
the grant date price
On each balance sheet date of the waiting period, it is
determined based on the latest information such as the
Determination basis of the number of vesting equity instruments
change 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 note
The earnings per share after deduction of non-recurring profit and loss was RMB -0.12/share in 2019, which
was lower the performance assessment target in the second period of lifting restrictions on sales; besides, the
Company's 2020 budget 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 ,In the current period, Company's Unconfirmed Share Payment Fee in the former recognized share
payment disbursement in interests from occupation of funds by the interest rate of 2.10% for two-year deposits
set by the People's Bank of China for restricted stock investment sum.
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of June 30,2020,The company does not disclose the pension plan undisclosed matter should exist.
2. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2020,The company does not disclose the pension plan undisclosed matter should exist.
(2) The Company have no significant contingency to disclose, also should be stated
None
3.Other
None
XV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
4. Notes of other significant events
None
XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
Not applicable
(2) Prospective application
Not applicable
2. Liabilities restructuring
None
3. Replacement of assets
(1) Non-monetary assets exchange
None
(2) Other assets exchange
None
4. Pension plan
None
5. Discontinuing operation
Not applicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure, management
requirements and internal reporting system. Based on the operating divisions, the Company confirms four
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
reporting divisions, namely textiles, polarizer, trade and property leasing.
Divisional reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each division when reporting to the management. These measurement basis are
consistent with the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
Property leasing and Inter-segment
Items Polarizer Textile Total
others elimination
Main business
799,129,105.40 15,998,728.16 41,293,975.08 -108,459.90 856,313,348.74
income
Main business cost 735,064,148.97 13,356,181.08 12,534,088.66 -46,115.10 760,908,303.61
Total assets 3,228,161,781.96 30,039,329.67 1,229,765,402.03 -11,667,639.41 4,476,298,874.25
Total liabilities 441,528,959.63 13,116,971.22 181,828,755.70 -7,875,600.00 628,599,086.55
Note: The financial information of the reporting segment should be disclosed in light of the Company's specific conditions, including
information such as main business income and main business costs.
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be
disclosed, explain the reason
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
Not applicable
8.Other
Not applicable
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Category Amount in year-end Amount in year-beginning
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Bad debt
Book balance Book balance Bad debt provision
provision Book Book
Amoun Propor Amoun Propor value Amoun Proport Amoun Proport value
t tion(%) t tion(%) t ion(%) t ion(%)
Including：
Accrual of bad
8,635,1 100.00 431,75 8,203,3 550,45 100.00 27,522. 522,931.
debt provision by 5.00% 5.00%
51.26 % 7.57 93.69 3.73 % 69 04
portfolio
Including：
8,635,1 100.00 431,75 8,203,3 550,45 100.00 27,522. 522,931.
Total 5.00% 5.00%
51.26 % 7.57 93.69 3.73 % 69 04
Accrual of bad debt provision by single item
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual of bad debt provision by portfolio: 431,757.57 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accounts receivable subject
to impairment assessment by
8,635,151.26 431,757.57 5.00%
credit risk characteristics of a
portfolio
Total 8,635,151.26 431,757.57 --
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） 8,635,151.26
Total 8,635,151.26
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
(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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad
debt provision 27,522.69 404,234.88 431,757.57
by portfolio:
Total 27,522.69 404,234.88 431,757.57
Where the significant amount of the reserve for bad debt recovered or reversed: None
(3) The actual write-off accounts receivable
Not applicable
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Closing balance Proportion % Balance of Bad debt
provision
Shenfang Building and
8,635,151.26 100.00% 431,757.57
Peripheral rent
Total 8,635,151.26 100.00%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Interest receivable 8,016,893.16 7,329,228.31
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Other accounts receivable 8,862,213.35 9,710,277.69
Total 16,879,106.51 17,039,506.00
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Structure deposit 8,016,893.16 7,329,228.31
Total 8,016,893.16 7,329,228.31
2) Significant overdue interest
Not applicable
3）Bad-debt provision
Not applicable
(2)Dividend receivable
1) Category of Dividend receivable
Not applicable
2) Significant dividends receivable with age exceeding 1 year
Not applicable
3) Provision for bad debts
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 8,884,955.75 9,366,582.51
Unit account 15,214,243.58 15,678,175.33
Other 94,852.59 44,314.75
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Total 24,194,051.92 25,089,072.59
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses for
Expected credit Expected credit loss over
Bad Debt Reserves the entire duration Total
losses over the life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at January
1,285,843.95 14,092,950.95 15,378,794.90
1, 2020
Balance as at January
—— —— —— ——
1, 2020 in current
Turn back in the
46,956.33 46,956.33
current period
Balance as at June 30，
1,238,887.62 14,092,950.95 15,331,838.57
2020
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） 4,248,573.06
1-2 years 3,828,819.36
2-3 years 1,830,359.77
Over 3 years 14,286,299.73
3-4 years 1,810,047.30
Over 5 years 12,476,252.43
Total 24,194,051.92
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
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Accrual of bad 14,092,950.95 14,092,950.95
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
debt provision
by single item
Accrual of bad
debt provision 1,285,843.95 46,956.33 1,238,887.62
by portfolio
Total 15,378,794.90 46,956.33 15,331,838.57
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
Not applicable
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Portion in total Bad debt provision
Name Nature Year-end balance Age other of year-end
receivables(%) balance
First Unit account 11,389,044.60 Over 5 years 47.07% 11,389,044.60
Internal current Within 1 year, 1-3
Second 7,875,600.00 32.55% 912,680.00
account years
Third Unit account 1,800,000.00 3-4 years 7.44% 1,800,000.00
Within 1 year, 1-3
Fourth Unit account 1,018,295.37 4.21% 50,467.79
years
Internal current
Fifth 1,009,355.75 Within 1 year 4.17% 181,045.68
account
Total -- 23,092,295.72 -- 95.44% 14,333,238.07
(6) Accounts receivable involved with government subsidies
Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Not applicable
3. Long-term equity investment
In RMB
14
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
1,966,803,211. 1,950,220,582. 1,966,803,211. 1,950,220,582.
Investments in 16,582,629.30 16,582,629.30
subsidiaries 46 16 46 16
Investments in
associates and 150,344,313.44 150,344,313.44 152,209,929.72 152,209,929.72
joint ventures
2,117,147,524. 2,100,564,895. 2,119,013,141. 2,102,430,511.
16,582,629.30 16,582,629.30
Total 90 60 18 88
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period Closing
Opening Withdrawn Closing balance of
Name Add Decreased
balance impairment Other balance impairment
investment investment
provision provision
Shenzhen
Shengbo
1,910,247,7 1,910,247,78 14,415,288.0
Optoelectrion
81.94 1.94 9
c Technology
Co., Ltd.
Shenzhen Lisi
Industrial 8,073,388.2
8,073,388.25
Development 5
Co., Ltd.
Shenzhen
Beauty
14,696,874.3 14,696,874.3
Centruty 2,167,341.21
4 4
Garment Co.,
Ltd.
Shenzhen
15,489,351. 15,489,351.0
Huaqiang
08 8
Hotal
Shenfang
Property 1,713,186.5
1,713,186.55
Management 5
Co., Ltd.
1,950,220,5 1,950,220,58 16,582,629.3
Total
82.16 2.16 0
14
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Adjust Declara Withdr balance
Openin Decreas Gain/lo ment of Other tion of awn of
Add Closing
Name g ed ss of other equity cash impair impair
investm Other balance
balance investm Investm compre change dividen ment ment
ent
ent ent hensive s ds or provisio provisio
income profit n n
I. Joint ventures
Anhui
Huapen
10,098, -51,447 10,047,
g
833.77 .41 386.36
Textile
Co.,Ltd.
Shenzh
en
Guanhu
a 129,62 128,64
-974,22
Printing 3,072.6 8,851.1
1.54
& 9 5
Dyeing
Co.,
Ltd.
139,72 138,69
Subtota -1,025,
1,906.4 6,237.5
l 668.95
6 1
II. Associated enterprises
Shenzh
en
Changli
anfa
2,450,6 91,484. 2,542,1
Printing
76.14 12 60.26
and
dyeing
Compa
ny
Jordan
Garnen 902,26 -924,09 6,568.8 -15,259
t 9.19 7.64 4 .61
Factory
14
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
Yehui
Interna
9,135,0 -395,65 381,74 9,121,1
tional
77.93 0.38 7.73 75.28
Co.,
Ltd.
Subtota 12,488, -1,228, 388,31 11,648,
l 023.26 263.90 6.57 075.93
152,20 150,34
-2,253, 388,31
Total 9,929.7 4,313.4
932.85 6.57
2 4
（3）Other note
Not applicable
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
25,667,881.46 3,003,017.42 33,021,263.65 4,357,490.45
Business
Other Business income 1,302,040.74 1,302,040.74 1,572,244.63 1,572,244.63
Total 26,969,922.20 4,305,058.16 34,593,508.28 5,929,735.08
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period, the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan.
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
-2,253,932.85 -1,614,057.55
measured by adopting the equity method
Investment income from the disposal of
518,152.41
long-term equity investment
Dividend income earned during
investment holdings in other equity 1,418,634.82 1,408,000.00
instruments
Structured deposit interest 11,383,689.05
Total 11,066,543.43 -206,057.55
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
6.Other
None
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 -6,837.44
Govemment subsidy recognized in current
Mainly due to recognize other income
gain and loss(excluding those closely
13,045,221.53 from government subsidies related to
related to the Company’s business and
the main business.
granted under the state’s policies)
Other non-business income and
-85,979.49
expenditures other than the above
Less :Influenced amount of income tax 22,685.75
Influenced amount of minor
5,092,038.68
shareholders’ equity (after tax)
Total 7,837,680.17 --
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
Earnings per share
Profit of report period Weighted average returns equity(%) Basic earnings per Diluted earnings per
share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of 0.03% 0.0014 0.0014
Company.
Net profit attributable to the
Common stock shareholders of
-0.26% -0.0140 -0.0140
Company after deducting of
non-recurring gain/loss.
15
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2020
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
None
15
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