Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2020
August 2020
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
I. Important Notice, Table of Contents and Definitions
The Board of Directors ， the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
Mr.Zhu Jun, The Company leader, Mr. He Fei, Chief financial officer and the Ms.Mu Linying, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the semi-report.
All the directors attended the board meeting for the review of this Report.
I. Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors should be cautious with investment risks.
II. The company has the macroeconomic risks, market competition risks and raw material risks. Investors are
advised to pay attention to investment risks. For details, please refer to the possible risk factors that the company
may face in the “ X Prospects for the future development of the company" in the “ Section IV Discussion and
Analysis of Business Operation”.
III. The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily,
Shanghai Securities News , Hongkong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）are the
media for information disclosure appointed by the Company, all information under the name of the Company
disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about convertible corporate bonds
IX. Information about Directors, Supervisors and Senior Executives
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National Assets
National Assets Regulatory Commission of Shenzhen Municipal
Regulatory Commission of Shenzhen Refers to
People's Government
Municipal People's Government
The Controlling shareholder/ Shenzhen
Refers to Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
Shengbo Optoelectronic Refers to Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Jinjiang Group Refers to Hangzhou Jinjiang Group Co., Ltd.
Nitto Denko Refers to Nitto Denko Corporation
Kunshan Qimei Refers to Kunshan Zhiqimei Material Technology Co., Ltd.
Jinxin Investment Refers to Lanxi Jinxin Investment Management Co., Ltd.
Changxing Junying Refers to Changxing Junying Eqkuity Investment Partnership（LP）
Huaiji Investment Refers to Hangzhou Huaiji Investment Management Co., Ltd.
Guanhua Company Refers to Shenzhen Guanhua Printing & Dyeing Co., Ltd.
Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project
Line 5 Refers to TFT-LCD polarizer II phase Line 5 project
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Line 7 Refers to Industrialization project of polaroid for super large size TV
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to The Semi-annual Report 2020
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
II. Basic Information of the Company and Financial index
Ⅰ.Company Information
Stock abbreviation Shen Textile A ,Shen Textile B Stock code： 000045,200045
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE （HOLDINGS） CO.,LTD
English abbreviation (If any) STHC
Legal Representative Zhu Jun
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
III. Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2019 Annual Report.
（2）Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details pl
ease find the Annual Report 2019.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
IV. Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 856,313,348.74 1,008,863,295.50 -15.12%
Net profit attributable to the shareholders
719,734.74 7,832,287.98 -90.81%
of the listed company（RMB）
Net profit after deducting of
non-recurring gain/loss attributable to
-7,117,945.43 -10,548,582.20 32.52%
the shareholders of listed company
（RMB）
Cash flow generated by business
-135,619,475.23 23,826,362.35 -669.20%
operation, net（RMB）
Basic earning per share(RMB/Share) 0.0014 0.0153 -90.85%
Diluted gains per
0.0014 0.0153 -90.85%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.03% 0.32% -0.29%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 4,476,298,874.25 4,531,399,885.99 -1.22%
Net assets attributable to shareholder of
2,730,559,277.47 2,727,764,144.36 0.10%
listed company（RMB）
V. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-6,837.44
for which assets impairment provision is made)
Mainly due to recognize other
Govemment subsidy recognized in current gain and
income from government
loss(excluding those closely related to the Company’s business 13,045,221.53
subsidies related to the main
and granted under the state’s policies)
business.
Other non-business income and expenditures other than the
-85,979.49
above
Less :Influenced amount of income tax 22,685.75
Influenced amount of minor shareholders’ equity (after tax) 5,092,038.68
Total 7,837,680.17 --
For the Company ’ s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
(I)The company's main business
The company's main business covered such the high and new technology industry as represented by LCD
polarizer, its own property management business and the retained business of high-end textile and garment.
During the reporting period, the company's main business conditions are as follows: Firstly, it completes the
introduction and mass production of multiple customers and projects, optimizes the sales structure of polarizers,
and improves the sales profit margin. Secondly, by strengthening quality inspection and process management, it
improves automation level, optimizing supply chain system, promotes inventory elimination and other measures,
continuously improves the operational capability and continuously reduces the operating cost of main business.
Thirdly, it fully promotes the construction of the industrialization project (Line 7) of ultra-large-size TV polarizers.
The project of Line 7 was fully resumed in mid-March due to the epidemic situation. The company is fully
promoting the project construction, strengthening the monitoring and management of budget, schedule and quality,
actively promoting technical exchanges with Nitto Denko and Kunshan Zhiqimei, and striving to complete all the
work on schedule with high quality. Fourthly, in order to jointly cope with the COVID-19 and actively fulfill
social responsibilities, the company and its wholly-owned enterprises respond to the call of Shenzhen Municipal
Party Committee and Municipal Government and State-owned Assets Supervision and Administration
Commission, and reduce the rent of some tenants of their own properties (except residential properties) in
February and March this year. Fifthly, in order to improve the overall operation ability of the company's assets and
revitalize the existing assets, the company plans to implement the transfer and liquidation work for the poorly
managed shareholding enterprises and concentrate on developing the polarizer business. Sixthly, it implements the
epidemic prevention and control work, focuses on safe and green production. The company sets up a special class
for epidemic prevention and control work, forms a coordinated and efficient epidemic prevention work
mechanism with responsibilities according to division and level-by-level transmission, which ensures the
implementation of various deployment measures, concentrated remediation, focused investigation of safety and
environmental protection issues, promotes the safe and stable development of enterprise, and actively fulfills
social responsibilities.
(II)Main products and their purposes
As a type of upstream raw materials of LCD panels and one of essential and fundamental materials in the
panel display industry, polarizers are widespread used in a variety of areas, LCD panels and OLED panels for
smart phones, tablet PCs and TV sets, instruments, apparatuses, sunglasses, and light filters of camera equipment,
to name a few. At the moment, the Company has 6 mass polarizer production lines for making products that cover
such areas as TN, STN, TFT, OLED, 3D, dye films, and optical films for touch screens and are primarily used in
TV, NB, navigators, Monitor, vehicle-mounted, industrial control, instruments, apparatuses, smart phones,
wearable equipment, 3D glasses, sunglasses and other products, based on which, the Company has become a
qualified supplier to China Star Optoelectronics Technology (CSOT), BOE, Century Technology, LGD, Tianma
and other major panel enterprises through constant extension of its marketing channels and building of its own
brand.
（III)Operation model
The company's main business polarizer business model is customer demand-centered, joint research and
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
development, and comprehensive service. The Company reduces production links and costs and creates value for
customers and a win-win situation through cooperation by deeply understanding customers' needs, making
high-quality products through multi-party joint research & development and high-standard production
management and using advanced polarizer rolling and attaching equipment in conjunction with downstream panel
manufacturers' production lines.
(IV) Major performance drivers
Refer to "III. Analysis on core competitiveness" in this section for details.
Relying on more than 20 years of industrial operation experience and regional advantages, the Company will
deepen the mixed-ownership reform work and strengthen strategic cooperation. To be specific, the Company will
further promote its production technology and business management standards through integration of resources in
the polarizer and optical film industries; meanwhile, the Company will seize the opportunity and spare no effort to
push forward the construction of an ultra-wide polarizer production line to occupy the highly lucrative jumbo
LCD TV polarizer product market; in addition to working on the polarizer industry, the Company will make a
leaping development towards the optical film industry related with flat panel display to make SAPO Photoelectric
a bigger and stronger enterprise.
Ⅱ. Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
At the end of the period, the Construction in process increased by RMB 115.3819
Construction in process million compared with the beginning of the period, an increased of 13.74%, Mainly
due to the current investment of Line 7 project.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ. Analysis On core Competitiveness
（1）Technology advantages.
Shengbo Optoelectronic is the first domestic national high-tech company which entered into the R&D and
production of the polarizer，We are one of the largest, most technical and professional polarizer R&D teams in the
country and has more than 20 years of operating experience in the polarizer industry. Products include TN-type,
STN-type, IPS-TFT-type, VA-TFT-type, OLED, vehicle-mounted industrial display, flexible display, 3D stereo
and polarizer for sunglasses, and optical film for touch screens, etc., We have proprietary technology for
polarizers and new intellectual property rights for various new products. By the end of the reporting period, SAPO
Photoelectric has applied for 101 patents in total (76 licensed), including 30 national invention patents (12
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
licensed), 64 national utility model patents (60 licensed), 1 international invention patent (0 licensed) and 6
international utility model patents (4 licensed). SAPO Photoelectric studied and formulated 4 national standards
and 2 industrial standards which have been adopted and put into practice. SAPO Photoelectric has two technical
platforms--"Shenzhen Polarizing Materials and Technology Engineering Lab" and "Shenzhen Municipal Research
and Development Center" where focus is given to research & development and industrialization of key LCD
polarizer production techniques, research & development and industrialization of new OLED polarizer products
and research on localization of polarizer production materials. Through the introduction of various types of
sophisticated testing equipments to perfect the test means of small-scale test and medium-scale test, further by
improving the incentive system of research and development and building the collaborative innovation platform of
“Industry-Study-Research-Utilization” and so forth means, the company comprehensively enhanced the level of
research and development.
（2）Talents advantages. The Company has a polarizer management team and a team of senior technicians
with strong technical ability, long-term cooperation, rich experience and international vision. Through open
market selection, the Company has hired professional senior management personnel, built a team of professional
managers, cultivated a professional manager culture and enhanced the core competitiveness of the enterprise. The
Company has established a technical cooperation relationship with Nitto Denko Corporation, a world-class
polarizer manufacturer, to learn advanced polarizer production management concepts. Meanwhile, the Company
has accumulated technical experience through independent innovation, improved its core competitiveness, and
gradually accumulated its own advantages in brand, technology, operation and management.
According to the objectives of operation improvement and management optimization, in order to improve the
operation status of SAPO Photoelectric, further promote the specialization, professionalization and marketization
of management personnel and optimize the management team, the top-level design of SAPO Photoelectric was
completed in January 2020, and 3 professional managers were selected and assigned to posts through
marketization. Meanwhile, in order to effectively promote the improvement of key business issues, SAPO
Photoelectric has completed the organizational structure adjustment, leadership division, internal competition for
middle managers and section chiefs, as well as contractual management of market-based selection of management
teams, and establishment of salary assessment mechanism.
（3）Market advantages. The company has a good market customer base at home and abroad. Compared with
foreign advanced counterparts, the biggest advantage lies in localization, close to panel market and strong support
of national policies. In terms of market demand, with the construction and planning of Generation 10.5/Generation
11 and advanced generation TFT - LCD panel production line production in succession, the production capacity of
advanced generation TFT-LCD panels will increase considerably in the next few years in mainland China, and the
corresponding domestic market demand for polarizers will also grow. The domestic market is the most important
market for polarizer manufacturers, especially the large-scale polarizer market, which will usher in important
industry opportunities in mainland China; When it comes to market development, focused on customers' needs,
the Company will keep optimizing its production process and product structure, tighten quality control and well
bind production and sales together, build a quick response mechanism, give full play to its local strengths, take
advantage of all the techniques and talents accumulated, provide good point-to-point professional services,
promote the verification of all types of machinery concerning the overall strategic deployment and form a stable
supply chain to increase its market share.
(4) Quality advantages. The company always adheres to the quality policy of “meeting customer needs and
pursuing excellent quality ” , attaching great importance to product quality control to make products up to the
international quality standard. The company has strictly controlled product performance indicators, standardized
incoming inspection standard, to achieve simultaneous improvement in output and quality by improving quality
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
and reducing consumption.through the introduction of a modern quality management system, the products have
passed ISO9001 Quality Management System and ISO14001 Environmental Management System, OHSAS18000
Occupational Health and Safety Management System, QCO80000 System Certification; the product is tested by
SGS and meets the environmental protection ,The company had increased the automatic detecting and marking
equipments in the beginning section and the ending section, strictly controlled the product quality and improved
the product utilization rate and product management efficiency.
（5）Management advantages.
The Company has been deeply cultivating the industry for more than 20 years and has accumulated rich
management experience in the production of polarizer. It has a domestic leading polarizer production management
process control system, quality management system and stable raw material supply channels. The Company has
carried out comprehensive benchmarking work, organized managers to learn advanced experience from customers
and peers, vigorously implemented standardized management, refined management process, learned from foreign
polarizer business management experience, optimized the Company's organizational structure, reduced
management levels, and further improved the Company's management efficiency. After introduction of strategic
investors, the Company learns from others' strong points and close the gap through the reform of mixed ownership
system, absorb the vitality of private enterprises, continues to implement advanced management system and
reasonable incentive mechanism, improves decision-making efficiency, speeds up market reaction, perfects R&D
incentive system, and realizes the value of enterprises and employees , learn from each other's strengths and make
up for the weaknesses, absorb the vitality of private enterprises, continues to the in-depth integration of the value
of the company and employees, and stimulates new vitality in business.
（ 6 ） Policy advantages. Polarizer is seen as an essential part of the panel display industry and SAPO
Photoelectric in its development has promoted the supply capacity of national polarizers, greatly lowered the
dependence of national panel enterprises on imported polarizers, and safeguarded the national panel industry,
which serves as a good facilitator to enhancing the overall competitiveness of China's panel industry chain and
coordinated development of the whole industry chain of the panel display industry cluster in Shenzhen.
Recognized as a national high-tech enterprise, SAPO Photoelectric is entitled to the preferential policy for
duty-free import of own productive raw materials that cannot be produced at home and frequently gained national,
provincial and municipal policy and financial support in its polarizer projects. Meanwhile, SAPO Photoelectric
tightened supplier management, improved its overall purchasing strategy, and downsized suppliers while
introducing a competitive mechanism, wherein focus was given to introduction of new materials at a competitive
price, to further lower its production cost and improve its product competitiveness.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
IV.Management’s Discussion and Analysis
Ⅰ.General
In the first half of 2020, facing the severe challenge of the sudden pneumonia epidemic in COVID-19, the
company went all out to prevent and control the epidemic and resume production, made great efforts to ensure the
main production and operation of polarizers, accelerated the construction of ultra-large TV polarizer line 7 project,
responded to the call of the municipal government, municipal SASAC and Shenzhen Investment Holdings, and
reduced rent and fees to support the real economy to overcome difficulties.
During the reporting period, the Company realized the operating income of RMB 856 million, representing a
decrease of RMB153 million or 15.12% over the same period of last year; the total profit was RMB -3.7328
million, representing a decrease of RMB7.7789 million or 192.26% over the same period last year;the net profit of
shareholders attributable to listed companies was RMB 719,700, which was RMB 7.1126 million lower than that
of the same period last year and 90.81% lower than that of the same period last year.During the reporting period,
the adjustment of the order structure of TFT-LCD Line 4/6 products achieved initial results, and the losses of
polarizer business decreased significantly year on year. The main reasons for the decrease in net profit attributable
to shareholders of listed companies compared with the same period of last year are as follows: Firstly, in order to
jointly cope with the COVID-19 epidemic and actively fulfill social responsibilities, the company and its
wholly-owned enterprises responded to the call of the Shenzhen Municipal Party Committee and Municipal
Government and SASAC to reduce and exempt some rent of its own properties (except residential properties) in
February and March of this year, and the rental income during the reporting period decreased significantly
year-on-year; Secondly, during the reporting period, SAPO Photoelectric, a subsidiary, did not carry out trade
business, and its income from trade business decreased year on year.
Reviewing the first half of 2020, the company focused on the key work, with contents as follows:
(I) Various measures to improve the operation and profitability of polarizer business
During the reporting period, the company carries out the general policy of "maintaining utilization and
adjusting structure", adjusts customer orders, optimizes product structure, adjusts sales strategies, reduces the
sales share of low and negative gross profit products, successfully completes the import and mass production of
multiple products, reaches cooperation intention with some end customers, and makes use of the strict
requirements of quality customers on quality, delivery time and cost to improve management level, timely
understands market conditions and improves the company's operational capability. Secondly, it strengthens the
process management of quality inspection, reduces the rate of customer complaints, and makes every effort to
improve the speed of line production machine so as to increase production capacity and ensure the delivery of
orders with good quality and quantity. Thirdly, it continuously optimizes the production and operation and reduces
the cost. By improving the automation level, optimizing the supply chain system and strictly controlling the
increase of inventory, the company reduces the operating cost in many ways.
Meanwhile, in order to improve the competitiveness of products and strengthen the research and
development of independent intellectual property rights, the company has carried out a number of development
and application of new products and materials and performance improvement projects of mass-produced products
around the market demand, and completed the development and introduction of some products and materials on
schedule, reducing costs and improving profitability through the application and development of new products
and materials. During the reporting period, the company has applied for 2 patents (utility models), and 1 patent
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
was granted a notice of authorization. With the two technical platforms of "Shenzhen Polarizing Materials and
Technology Engineering Laboratory" and "Municipal Research and Development Center", the company focuses
on the research and development and industrialization of the core production technology of LCD polarizers, the
development and industrialization of new products of OLED polarizers, and the localization of raw materials for
polarizer production, actively expands investment in research and development, horizontally explores innovative
development of mature products, and enhances its sustainable development capability.
(II) Actively promote the construction of Line 7 project
Affected by the COVID-19, the company is faced with problems such as labor shortage, insufficient supply
of engineering materials and equipment, limited transportation, etc. The construction of Line 7 project was not
fully resumed until mid-March 2020. The company further strengthened the monitoring and management of
budget, schedule, quality and other aspects, rearranged the construction time node, and is currently carrying out
the purification and decoration engineering construction and the installation of extension machine equipment. It is
planned to complete the main machine equipment debugging in February 2021, and start the trial production.
During the reporting period, the Company has prudently demonstrated that it will invest 147.2 million yuan
in the construction of 1 RTP production line and 2 RTS production lines on the Line 7 project. The source of funds
is its own funds and bank loans. The main reasons for this increase in investment are first to meet the needs of
downstream panel customers and enhance the depth of customer cooperation; second, to help improve the overall
production efficiency of the Line 7 project, simplify the production process, and effectively reduce production
costs; third, to further improve Enterprise competitiveness provides guarantee for the successful operation of Line
7 project. For the above details, please refer to the "Announcement on the Increase of Investment and
Construction Progress in the Industrialization Project of Polarizers for Ultra-large TVs (Line 7)" by Juchao
Information Network (http://www.cninfo.com.cn) on April 30, 2020. (No. 2020-25).
(III) Actively respond to the call of the Municipal Party Committee and the municipal government, and
implement the property rent reduction measures
In accordance with the spirit of the documents of the State-owned Assets Supervision and Administration
Commission of the People's Republic of China and Shenzhen Investment Holdings on the implementation of
Several Measures to Support Enterprises to Overcome Difficulties in Response to Pneumonia Infected by
COVID-19 in Shenzhen, the company first issued and published the implementation measures for rent exemption
and fee reduction during COVID-19 epidemic period. Non-state-owned enterprises, scientific research institutions,
medical institutions, individual industrial and commercial households and operating natural persons who rent the
properties of the company and their wholly-owned enterprises have been exempted of the rent for 2 months from
February to March this year, which is RMB 13.6931 million according to statistics; Secondly, it sent a letter to 9
shareholders of all 6 participating holding enterprises including property leasing management, proposing that the
participating holding enterprises reduce the rent for 2 months, so as to reduce the operating pressure for the entity
operators. According to statistics, the participating holding enterprises reduced the rent by RMB 5.7702 million in
total.
(IV) Actively strive for policy support
The company comprehensively combs the government's industrial development fund support policies,
actively applies for the major award projects of the enterprise technical transformation support plan of the
Municipal Bureau of Industry and Information Technology, and applies for various support policies in various
national ministries and commissions, relevant departments in Guangdong Province and Shenzhen City. As of the
disclosure date of this report, enterprises have actively applied for subsidies for epidemic prevention and control
funds and subsidies for projects under construction, totaling RMB 18.8654 million.
(V) Revitalize existing assets and focus on developing the main business
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
In order to improve the overall operational capability of the company's assets and revitalize existing assets,
the company plans to jointly publicly list and transfer 20% equity of Shenzhen Xiangjiang Trading Co., Ltd. held
by the company and 80% equity of Shenzhen Xiangjiang Trading Co., Ltd. held by Hunan Guofu Asset
Management Co., Ltd., and the company has fulfilled the internal decision-making procedures. After confirming
the transfer plan, it will publicly list and collect the intended transferee; Secondly, it well ensures the liquidation
of Anhui Huapeng Textile Co., Ltd. and recovers the investment cost. At present, the shareholders of Anhui
Huapeng Textile Co., Ltd. have reached an agreement on the employee resettlement and historical issues, and are
further accelerating the liquidation work, and plan to complete the liquidation work by the end of this year;
Thirdly, it accelerates the dissolution and liquidation of overseas textile and garment processing enterprises.
Affected by the Sino-US trade war and epidemic situation, overseas garment processing enterprises that have been
participating in the company's shareholding operation for many years are experiencing difficulties and sustained
losses, and are gradually reducing their business and striving to complete the dissolution and liquidation work this
year.
(VI) Implement epidemic prevention and control properly, and ensure safe production in a stable and orderly
manner
Firstly, the company strengthens organizational leadership to effectively prevent and control the spread of the
epidemic. The company has set up a special class for epidemic prevention and control, refined the division of
responsibilities, enhanced the joint efforts of work, formed a coordinated and efficient epidemic prevention work
mechanism with responsibilities according to division and level-by-level transmission, and enhanced the dense
epidemic prevention responsibility network to ensure the implementation of various deployment measures and
effectively protect the life safety and health of employees.
Secondly, it fully implements the responsibility system for work safety and deepen the investigation and
management of potential safety hazards. At the beginning of the year, the company made clear regulations on the
work safety of the enterprise, requiring all enterprises to implement the main responsibility of work safety and
implement the one-vote veto system of work safety, and incorporate work safety into the annual performance
appraisal of enterprise leaders. Meanwhile, the Safety Committee of the Company carried out on-site surprise
inspections on construction sites such as Line 7 construction project, Lisi Building facade renovation project and
Guanhua Building parking lot project, and issued timely rectification notices of potential safety hazards and
problems, which were completed during the reporting period.
(VII) Implement inspection and rectification work and consolidate the foundation of party building
According to the work arrangement of the superior Party Committee, based on the study of the central group
of the Party Committee and the "three sessions and one lesson", the company has earnestly carried out various
forms of theoretical study, strengthened the annual special assessment of party building, the assessment of party
branch secretary and the system construction, and consolidated the foundation of party building. According to the
feedback from the Third Inspection Group of the Party Committee of SASAC, it formulates rectification measures,
clarifies the time limit for rectification, timely submits rectification reports and publicize the rectification situation,
compacts the inspection and rectification responsibilities, and makes overall plans to promote the implementation
of rectification.
II. Main business analysis
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
14
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
This report period Same period last year YOY change（%） Cause change
Operating income 856,313,348.74 1,008,863,295.50 -15.12%
Operating cost 760,908,303.61 940,587,510.73 -19.10%
During the reporting
period, the salary of sales
staff increased, the increase
of sales volume outside the
province leads to an
Sale expenses 13,380,921.28 7,369,804.52 81.56%
increase in transportation
costs, and the expansion of
customers through channels
makes the sales service fees
increase year on year.
Administrative
44,347,465.66 42,901,879.68 3.37%
expenses
During the reporting
period, interest expenses
and exchange losses
decrease. Interest income
from structured deposits
Financial expenses 1,761,575.96 -730,687.94 341.08% was included in interest
income during the same
period last year, and
investment income is
included in this reporting
period.
During the reporting
period, property leasing
and trade profits decrease
Income tax expenses 5,258,391.87 9,773,007.83 -46.19%
year-on-year, and asset
disposal gains and losses
decrease year-on-year.
During the reporting
R & D Investment 24,561,050.95 19,172,388.20 28.11% period, R&D efforts are
intensified.
In the same period of last
year, there is recovery of
Cash flow generated
trade receivables in the
by business operation, -135,619,475.23 23,826,362.35 -669.20%
previous period, but there
net
is none in this reporting
period.
15
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
During the reporting
period, more structured
deposits are recovered than
Net cash flow
investments, while
generated by 48,439,746.15 -450,772,543.46 110.75%
investment in structured
investment
deposits is more than
recovered in the same
period last year.
There is repayment of loan
Net cash flow in the same period of last
-8,981,300.40 -451,630,120.04 98.01%
generated by financing year, but there is no loan in
this reporting period.
In the reporting period, the
cash flow paid by
Net increasing of cash
-94,940,308.45 -878,027,966.87 89.19% investment and financing is
and cash equivalents
less than that in the same
period of last year.
Major changes in profit composition or sources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Component of Business Income
In RMB
This report period Same period last year
Increase /decrease
Amount Proportion Amount Proportion
Total operating
856,313,348.74 100% 1,008,863,295.50 100% -15.12%
revenue
On Industry
Manufacturing 815,096,304.76 95.19% 643,643,001.98 63.80% 26.64%
Lease and
Management of 38,061,456.97 4.44% 49,680,246.62 4.92% -23.39%
Property
Trade 312,992,303.03 31.03% -100.00%
Other 3,155,587.01 0.37% 2,547,743.87 0.25% 23.86%
On Products
Polarizer sheet 799,129,105.40 93.32% 629,072,823.54 62.35% 27.03%
Lease and
Management of 38,061,456.97 4.44% 49,680,246.62 4.92% -23.39%
Property
16
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Textile 15,967,199.36 1.87% 14,570,178.44 1.45% 9.59%
Trade 312,992,303.03 31.03% -100.00%
Other 3,155,587.01 0.37% 2,547,743.87 0.25% 23.86%
Area
Domestic 758,180,695.48 88.54% 909,178,658.98 90.12% -16.61%
Overseas 98,132,653.26 11.46% 99,684,636.52 9.88% -1.56%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrea Increase/decrea
Increase/decrea
se of business se of gross
se of revenue in
Gross profit cost over the profit rate over
Turnover Operation cost the same period
rate(%) same period of the same period
of the previous
previous year of the previous
year(%)
(%) year (%)
On Industry
Manufacturing 815,096,304.76 748,420,330.05 8.18% 26.64% 18.04% 6.69%
Lease and
Management of 38,061,456.97 10,402,484.37 72.67% -23.39% -14.09% -2.96%
Property
Other 3,155,587.01 2,085,489.19 33.91% 23.86% 0.61% 15.27%
On Products
Polarizer sheet 799,129,105.40 735,064,148.97 8.02% 27.03% 18.45% 6.67%
Lease and
Management of 38,061,456.97 10,402,484.37 72.67% -23.39% -14.09% -2.96%
Property
Textile 15,967,199.36 13,356,181.08 16.35% 9.59% -1.08% 9.02%
Other 3,155,587.01 2,085,489.19 33.91% 23.86% 0.61% 33.91%
Area
Domestic 758,180,695.48 679,938,882.95 10.32% -16.61% -19.31% 3.00%
Overseas 98,132,653.26 80,969,420.66 17.49% -1.56% -17.34% 15.76%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
Explanation for a year-on –year change of over 30%
17
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
√Applicable□ Not applicable
Ⅲ. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Obtaining dividends ，
contract fees and Interest
Investment
13,932,825.63 -373.26% income on structured Have the sustainability
income
deposits from
shareholding enterprises
Gains and losses
on changes in fair 0.00 0.00%
value
Impairment of Mainly from the loss of
-35,474,634.93 950.35% Have the sustainability
assets inventory depreciation
It is to collect fines from
Non-operating third parties (construction
20,431.28 -0.55% Not sustainable.
income party of Line 7 project) for
violating regulations.
It is to pay back stamp
duty from 2017 to 2019
Non-operating
106,410.77 -2.85% and late payment fee for Not sustainable.
expense
enterprise income tax in
2019.
Mainly for government
Other income 13,045,221.53 -349.48% Have the sustainability
subsidies.
IV. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of same period of last
End of Reporting period
year Change
As a As a in
Reason for significant change
percentage percentage percent
Amount Amount
of total of total age(%)
assets(%) assets(%)
18
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The decrease in monetary funds is
208,316,334. 419,227,198. mainly due the construction
Monetary fund 4.65% 9.56% -4.91%
46 60 expenditure of line 7 during the
reporting period
Accounts 437,419,876. 497,053,241.
9.77% 11.34% -1.57%
receivable 54 57
465,530,597. 515,163,535.
Inventories 10.40% 11.75% -1.35%
15 57
Real estate 110,981,279. 116,195,160.
2.48% 2.65% -0.17%
Investment 05 90
Long-term
150,344,313. 163,733,127.
equity 3.36% 3.73% -0.37%
44 58
investment
850,896,074. 934,236,253.
Fixed assets 19.01% 21.31% -2.30%
15 12
During the reporting period, the
investment in the construction of
Construction in 955,248,196. 94,993,015.5
21.34% 2.17% 19.17% polaroid line 7 increases the total
process 39 9
amount of projects under
construction
Short-term 50,837,730.7
0.00% 1.16% -1.16%
loans 6
Long-term
0.00% 0.00 0.00% 0.00%
loans
Other equity
251,031,389. 242,767,132.
instrument 5.61% 5.54% 0.07%
11 26
investment
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss
on fair Cumulative Impairment Purchased Sold
Amount at value fair value provisions amount in amount in Amount
Other
Items year change in change in the the the at year
changes
the recorded reporting reporting reporting end
beginning
reporting into equity period period period
period
Financial
assets
19
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Financial
assets
measured at
fair value
through
830,000,00 51,000,000. 779,000,0
profit or
0.00 00 00.00
loss
(excluding
derivative
financial
assets)
Other
equity 248,781,94 2,249,442.3 251,031,3
Instrument 6.73 8 89.11
Investment
Subtotal of
1,078,781,9 2,249,442.3 51,000,000. 1,030,031
financial
46.73 8 00 ,389.11
assets
1,078,781,9 2,249,442.3 51,000,000. 1,030,031
Total
46.73 8 00 ,389.11
Financial
0.00 0.00
Liability
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
As of June 30, 2020, other monetary funds include L/C security of RMB 30,633,741.41, and the total assets with
restricted ownership or use rights are RMB 30,633,741.41.
V. Analysis on investment Status
1. General
□ Applicable √ Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
20
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4. Financial assets at fair value
√ Applicable □ Not applicable
In RMB
Gain/loss
on f\air Accumulated Accumula
Sold in
Initial value fair value Purchased in ted return
the Ending Funding
Type of assets investme changes in changes the reporting on
reporting amount source
nt cost the recorded in period investmen
period
reporting equity t
period
8,940,59 8,818,366
Stock -122,232.17 0.00 0.00 Self funds
8.31 .14
2,559,85 12,315,93
Other 9,756,083.35 Self funds
6.26 9.61
2,600,00 149,869,200. 152,469,2
Other Self funds
0.00 00 00.00
160,000. 7,474,900
Other 7,314,900.00 Self funds
00 .00
524,000. 2,227,903
Other 1,703,903.00 Self funds
00 .00
14,831,6 -14,831,681.
Other 0.00 Self funds
81.50 50
16,800,0 -16,800,000.
Other 0.00 Self funds
00.00 00
4,243,70 21,516,380.8 25,760,08
Other Self funds
5.44 3 6.27
1,500,00 11,964,994.0 13,464,99
Other Self funds
0.00 9 4.09
28,500,0 28,500,00
Other 0.00 Self funds
00.00 0.00
80,659,8 170,371,547. 251,031,3
Total 0.00 0.00 0.00 0.00 --
41.51 60 89.11
21
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
5.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
I. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
II.Sales of major equity
□ Applicable √ Not applicable
Ⅶ. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Main Registered Total Operatin
Type Net assets Turnover Net Profit
name business capital assets g profit
Domestic
Shenzhen
Trade,
Lisi 2,360,000. 38,197,364 31,974,765 2,986,022. 387,855.
Subsidiary Property 368,620.50
Industrial 00 .32 .68 42 75
manageme
Co., Ltd.
nt
Accommo
Shenzhen
dation, 10,005,300 32,597,332 27,056,601 3,337,078. 338,661.
Huaqiang Subsidiary 282,103.14
business .0 .09 .96 19 01
Hotel
center;
Shenfang
Property
Property 1,600,400. 10,792,806 4,154,407. 6,431,369. 302,103.
Subsidiary manageme 219,860.87
Manageme 00 .87 77 72 92
nt
nt Co., Ltd.
22
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Production
Shenzhen of fully
Beauty electronic
30,039,329 16,922,358 15,998,728 595,066.
Century Subsidiary jacquard 13,000,000 595,066.70
.67 .45 .16 70
Garment knitting
Co., Ltd. whole
shape
Shenzhen
Shengbo Production
Opotoelect and sales 583,333,33 3,201,329, 2,777,859, 802,362,70 -28,227, -28,210,564.
Subsidiary
ric of 3 970.96 994.40 3.39 720.23 14
Technolog polarizer
y Co., Ltd
Shenzhen
Operating
Shenfang
import and 5,000,000. 29,006,615 8,954,058. -640,193
Import & Subsidiary 0.00 -706,797.68
export 0 .15 39 .00
export Co.,
business
Ltd.
Shengtou
Sales of HKD10,00 10,776,989 6,411,664. 2,685,563. 105,552.
（HK）Co., Subsidiary 105,552.40
polarizer 0 .82 71 66 40
Ltd.
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2020
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Macro economic risk
In the second half of 2020, China will still adhere to the principle and policy of "striving for progress while
maintaining stability". Although the regular data of current national statistics show that China has made great
achievements in preventing and controlling COVID-19, there are some positive signals in the economic situation,
and the trend of economic stability and long-term improvement has not changed, the economic difficulties shall
23
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
not be ignored. Under the uncertain development of Sino-US relations, the science and technology competition
between countries is very likely to face long-term and arduous challenge. As an important part of the electronic
information industry, the industry in which the company is engaged in is subject to the possibility that
unpredictable fluctuations in macro-economy will cause risks to the company's performance.
Countermeasures: The company will pay close attention to the international economic situation, study
national policies and industry trends, strengthen the tracking and analysis of major industry information, and grasp
the development and change trends of the industry in a timely manner. Meanwhile, it will continuously optimize
the product structure, improve the market development ability, stimulate the vitality of enterprise development,
strengthen internal management, control operational risks and ensure the steady development of the company.
2. Market risk
Polarizer industry is an important part of China's future manufacturing development. The demand for display
panels and the development of corresponding technologies are changing everyday. Chinese technology enterprises
are facing the instability of global supply chain, which determines that they will rely more on domestic
independent R&D and production in the future, and the localization of polarizer products and domestic
substitution of raw materials will also accelerate. In addition, with the gradual mass production of the 10.5th and
11th genaration line and the current layout adjustment of the polarizer industry, the competition faced by the
company may become more and more fierce. If the company's technology and products fail to meet the needs of
the application field in time, the wide polarizer products and applications will fall short of expectations, or the
market competition will intensify, resulting in the price drop of display products and the upward transmission of
price reduction pressure to the polarizer market, which will have an adverse impact on the company.
Countermeasures: Facing the complex market environment, on the one hand, the company has
comprehensively built the Line 7 project as planned, actively promoted the introduction of new product clients,
improved product bargaining power, and stabilized customer confidence; On the other hand, it keeps close
communication with customers at all levels, pays close attention to product demand trends, taps market potential,
increases market share, continuously improves production line yield and utilization, enhances core
competitiveness and deals with market risks.
3. Risk of raw material
The core patents of polarizer terminal materials have high technical barriers and are basically monopolized
by foreign manufacturers. Thus, patents are the main reason for limiting the localization of raw materials.
Currently, the key raw materials for manufacturing polarizers, PVA film and TAC film, are basically monopolized
by Japanese companies and the production line and production technology of upstream supporting raw materials
are constrained by the Japanese side. Compared with the international manufacturer's complete industrial chain
model from upstream raw materials to polarizers to display panels, the Company does not have the corresponding
complete industrial support to play the role in industrial integration while the price of major membrane materials
is affected by the supplier's production capacity, market demand and the yen exchange rate, which influences the
unit cost of the Company's products.
Countermeasures: The company will continue to optimize the supply chain system, improve the bargaining
power with suppliers, increase the R&D of independent intellectual property rights, promote the import of
low-cost raw materials, actively explore the import substitution of raw materials, improve the utilization and
maintain a low level of production loss rate, maintain production stability and continuity, and reduce product
production costs; If necessary, the company can choose exchange rate wealth management products such as
forward foreign exchange and foreign exchange options to avoid excessive exchange losses caused by sharp
exchange rate fluctuations.
4. Impact risk of COVID-19
24
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Since January 2020, COVID-19 has broken out world. Although the epidemic prevention and control in
China is improving, there are still uncertainties in the global epidemic and epidemic prevention and control.
Firstly, if the overseas epidemic situation can not be effectively controlled, it may have an impact on the
company's raw material import, product trade and the dissolution and liquidation of overseas garment processing
enterprises; Secondly, affected by the epidemic situation, the installation and debugging of the equipment guided
by the technical support personnel from Japan of Line 7 project cannot be carried out as planned.
Countermeasures: On the one hand, the company will promote its normal production and operation while
ensuring the health of employees, strengthen the upstream raw material supply and the downstream customer
demand tracking, ensure the stable development of production and operation, and minimize the adverse effects of
the epidemic as much as possible. On the other hand, it will actively communicate with government departments
about the entry application of Japanese technicians. If Japanese technicians cannot provide on-site guidance, it
will consider adopting online and document communication to receive technical guidance.
25
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
The First Announcement
provisional Provisional No.:2020-01
49.17% January 16,2020 January 17,2020
General Meeting General Meeting www.cninfo.com.c
of 2020 n
The Second Announcement
provisional Provisional No.:2020-22
49.13% April 3,2020 April 7,2020
General Meeting General Meeting www.cninfo.com.c
of 2020 n
Announcement
Annual General Annual General No.:2020-32
49.14% June 29,2020 June 30,2020
Meeting of 2019 Meeting www.cninfo.com.c
n
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the
reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □Not applicable
Time of Period of
Commitme
Commitment Type Contents making commitmen Fulfillment
nt maker
commitmen t
26
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
t
As Shenzhen Investment
Holdings Co., Ltd., the
controlling shareholder of
the company, committed
when the
restricted-for-sale shares
from the shares
restructuring were listed
for circulation in the
market: i. if they plan to
sell the shares through the
securities exchange system
in the future, and the
Share
Shenzhen decrease of the shares they
reductio Sustained
Commitment on share Investment hold reaches 5% within 6 August 4, Under
n and
reform Holdings months after the first 2006 Fulfillment
commit effective
Co., Ltd. decrease, they will
ment
disclose an announcement
indicating the sale through
the company within two
trading days before the
first decrease; ii. They
shall strictly observe the
“Guidelines on Transfer
of Restricted-for-sale
Original Shares of Listed
Companies” and the
provisions of the relevant
business principles of
Shenzhen Stock Exchange.
Commitment in the
acquisition report or the
report on equity changes
Commitment made upon
the assets replacement
Commit Shenzhen Investment
ments Holdings Co., Ltd. signed
Shenzhen
on a “Letter of Commitment Sustained
Commitments made upon Investment October 9, Under
horizont and Statement on and
issuance Holdings 2009 Fulfillment
al Horizontal Competition effective
Co., Ltd.
competit Avoidance” when the
ion, company issued
27
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
related non-public stocks in 2009.
transacti Pursuant to the Letter of
on and Commitment and
capital Statement, Shenzhen
occupati Investment Holdings Co.,
on Ltd. and its wholly owned
subsidiary, subsidiaries
under control or any other
companies that have actual
control of it shall not be
involved in the business
the same as or similar to
those Shenzhen Textile
currently or will run in the
future, or any businesses
or activities that may
constitute direct or indirect
competition with
Shenzhen Textile; if the
operations of Shenzhen
Investment Holdings Co.,
Ltd. and its wholly owned
subsidiaries, subsidiaries
under control or other
companies that have actual
control of it compete with
Shenzhen Textile in the
same industry or
contradict the interest of
the issuer in the future,
Shenzhen Investment
Holdings Co., Ltd. shall
urge such companies to
sell the equity, assets or
business to Shenzhen
Textile or a third party;
when the horizontal
competition may occur
due to the business
expansion concurrently
necessary for Shenzhen
Investment Holdings Co.,
Ltd. and its wholly owned
subsidiaries, subsidiaries
28
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
under control or other
companies that have actual
control of it and Shenzhen
Textile, Shenzhen Textile
shall have priority.
The commitments during
the period non-public
issuance in 2012: 1.
Shenzhen Investment
Holdings, as the
controlling shareholder of
Shenzhen Textile,
currently hasn't the
production and business
activities of inter-industry
competition with
Shenzhen Textile or its
share-holding subsidiary.
Commit 2. Shenzhen Investment
ments Holdings and its
on share-holding subsidiaries
horizont or other enterprises owned
al the actual control rights
Shenzhen
competit can't be directly and Sustained
Investment July 14, Under
ion, indirectly on behalf of any and
Holdings 2012 Fulfillment
related person, company or unit to effective
Co., Ltd.
transacti engage in the same or
on and similar business in any
capital districts in the future by
occupati the form of share-holding,
on equity participation, joint
venture, cooperation,
partnership, contract,
lease, etc., and ensure not
to use the controlling
shareholder's status to
damage the legitimate
rights and interests of
Shenzhen Textile and
other shareholders, or to
gain the additional
benefits. 3. If there will be
the situation of
inter-industry competition
29
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
with Shenzhen Textile for
Shenzhen Investment
Holdings and its
share-holding subsidiaries
or other enterprises owned
the actual control rights in
the future, Shenzhen
Investment Holdings will
promote the related
enterprises to avoid the
inter-industry competition
through the transfer of
equity, assets, business
and other ways. 4. Above
commitments will be
continuously effective and
irrevocable during
Shenzhen Investment
Holdings as the controlling
shareholder of Shenzhen
Textile or indirectly
controlling Shenzhen
Textile.
1.The company undertakes
not to provide loans, loan
guarantees, and any other
forms of financial
assistance to the incentive
objects for obtaining the
restricted stocks in the
Shenzhen incentive plan; 2. The
Other
Equity incentive Textile(Hol company undertakes that November December Under
commit
commitment dings) Co., there is no circumstance 27,2017 27,2021 Fulfillment
ment
Ltd. that the stock incentive
shall be prohibited as
stipulated in the provisions
of Article 7 of the
“Measures for the
Management of Stock
Incentives of Listed
Companies”.
Other commitments
made to minority
30
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
shareholders
Executed timely or not? Yes
If the commitments
failed to complete the
execution when expired,
should specifically Not applicable
explain the reasons of
unfulfillment and the net
stage of the working plan
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s”
Issued by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Significant lawsuits or arbitrations
√ Applicable □ Not applicable
Amount Litigation Litigation
Basic Forming Date
involved Litigation (arbitration) (arbitration)
conditions of of the of Index of
（Ten (arbitration) judgement judgement
litigation predicted disclo disclosure
thousand progress result and execution
(arbitration) debt sure
yuan ） influence condition
For details of As of the In view of the As of the For details,
March
the matters disclosure date of company's disclosure please refer to
24,478.38 No 11,202
concerning this report, the involvement in date of this the
0
arbitration and company has this arbitration report, due Announcement
31
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
compensation entrusted a lawyer and the to the on Company
for the to submit evidence uncertainty of epidemic, Involved in
performance and materials of the arbitration the Arbitration
commitments this arbitration to results, Jinjiang arbitration (No.2020-07)
of subsidiaries the arbitration Group's has not yet and Progress
in 2019, tribunal in unfulfilled been held, Announcement
please refer to accordance with commitment to and the time on Company
"XVIII. Major the arbitration the company's of the Involved in
Matters of procedures, and subsidiary hearing has Arbitration
Subsidiaries submitted a letter SAPO yet to be (No.2020-21)
of the of invitation for the Photoelectric in scheduled. disclosed by
Company" in applicant to clarify 2019 is cnInfo
"Section V the arbitration uncertain. (http://www.cnin
Important request and arrange fo.com.cn) on
Matters" of the hearing. March 11, 2020
this report. However, due to and March 28,
the epidemic, the 2020
arbitration has not respectively.
yet been held, and
the time of the
court session has
yet to be
scheduled.
Other legal matters
□ Applicable √ Not applicable
IX. Doubt6s from media
□ Applicable √Not applicable
The Company had no issues about which media generally raised doubts in the reporting period.
X. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
XI. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
No such cases in the reporting period.
XII. Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√ Applicable □ Not applicable
(I) Formulation of Restricted Stock Incentive Plan
32
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
On November 27, 2017, the Proposal on the Company's Implementation Measures of Evaluation for the 2017
Restricted Stock Incentive Plan (Draft) and summary and the Proposal on the Company's Implementation
Measures of Evaluation for the 2017 Restricted Stock Incentive Plan was examined and approved in the 7th board
meeting of the company ’ s 7th session board of directors, and related proposals agreed to fulfill the relevant
procedures and related proposals agreed to fulfill the relevant procedures
On December 11, 2017, the SASAC agreed in principle to implement the restricted stock incentive plan.
On December 14, 2017, the company held the third extraordinary shareholders' general meeting in 2017,
which reviewed and approved the Proposal on the Company's Implementation Measures of Evaluation for the
2017 Restricted Stock Incentive Plan (Draft) and summary and Proposal on the Company's Implementation
Measures of Evaluation for the 2017 Restricted Stock Incentive Plan and other issues.
(II) Information on granting the restricted stock
On December 14, 2017, the company held the 8th meeting of the 7th Board of Directors, which reviewed and
approved the “Proposal on Adjusting the List of Incentive Objects and Granting Quantity of the 2017 Restricted
Stock Incentive Plan” and the “Proposal on Granting the Restricted Stocks to Incentive Objects”. The restricted
shares actually granted by this stock incentive plan totaled 4,752,300 shares, and 119 incentive objects were
granted, with the granting price was 5.73 yuan per share.
On December 27, 2017, the company ’ s restricted stock completed the grant registration formalities at China
Securities Depository and Clearing Corporation Shenzhen Branch.
(III) Progress of restricted stock
1. Regarding the repurchase and cancellation of some restricted stocks, i.e. the repurchase and cancellation of
restricted stocks in Phase II and held by 3 original incentive objects
On June 4, 2019, the Company convened the 19th meeting of the 7th board of directors and the 13th meeting
of the 7th board of supervisors to consider and pass the Proposal on Repurchase and Cancellation of Some
Restricted Share, agreeing to repurchase and cancel the 1,877,720 restricted shares held by the Company for 116
incentive objects at a repurchase price of 5.92 yuan/share, which did not meet the conditions for lifting the
restriction on sale in phase I. The buyback price of 5.73 yuan per share was used to cancel 58,000 restricted shares
held by 3 original incentive subjects who left the company for personal reasons, and a total of 1,935,720 restricted
shares were repurchased and canceled.
On June 26, 2019, the Company held its 2018 annual shareholders' meeting to consider and pass the Proposal
on Repurchase and Cancellation of Some Restricted Shares, agreeing to repurchase and cancel the 1,877,720
restricted shares held by 116 incentive objects at a repurchase price of 5.92 yuan per share in phase I and 58,000
restricted shares held by 3 original incentive objects who left the company for personal reasons at a repurchase
price of 5.73 yuan per share, and a total of 1,935,720 restricted shares were repurchased and canceled.
On September 12, 2019, the above-mentioned restricted stock companies completed the repurchase and
cancellation procedures in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2. Regarding the repurchase and cancellation of some restricted stocks, i.e. the repurchase and cancellation of
restricted stocks held by 3 original incentive objects
On December 30, 2019, the Company held the 25th meeting of the 7th board of directors and the 17th
meeting of the 7th board of supervisors to consider and pass the Proposal on Repurchase and Cancellation of
Some Restricted Shares, agreeing that the company will repurchase and cancel 69,900 restricted shares held by 3
original incentive objects who left the company for personal reasons at a repurchase price of 5.73 yuan per share.
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
33
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
repurchase and cancel 69,900 shares of restricted shares held by 3 original incentive objects who left the company
for personal reasons at a repurchase price of 5.73 yuan per share.
On January 17, 2020, the Company's registered capital will be reduced due to the repurchase and cancellation
of some restricted stocks. According to the Company Law and other relevant laws and regulations, the Company
discloses the Announcement on Reduction of Capital for Repurchase and Cancellation of Some Restricted Stocks
(No 2020-02), and creditors are hereby notified that they have the right to require the Company to repay debts or
provide corresponding guarantees within 45 days from the date of this announcement. If the creditor fails to
exercise the above rights within the prescribed time limit, the repurchase and cancellation will continue to be
implemented according to legal procedures.
3. About the repurchase and cancellation of some restricted stocks namely the repurchase and cancellation of
phase II restricted stocks and the restricted stocks held by the three original incentive objects
On March 12, 2020, the Company convened the 27th meeting of the 7th Board of Directors and the 19th
meeting of the 7th Board of Supervisors, in which it reviewed and approved the "Proposal on the Repurchase of
Some Restricted Stocks", agreed that the Company buys back and cancels the restricted stock of the Phase II-that
does not meet the conditions for lifting the sales restriction in the second phase of 1,313,340 shares held by 110
incentive objects with a repurchase price of RMB 5.73 per share plus with the interest during the same period that
the bank's deposit has, and buys back and cancels the 120,000 restricted stocks-granted but have not been lifted
for sale-held by the three original incentive subjects who left for personal reasons with a repurchase price of RMB
5.73 per share, thus a total of 1,433,340 restricted stocks shall be repurchased and cancelled.
On April 3, 2020, the Company held the second extraordinary shareholders ‘ general meeting of 2020, in
which it reviewed and approved the "Proposal on the Repurchase of Some Restricted Stocks", agreed that the
Company buys back and cancels the restricted stock-that does not meet the conditions for lifting the sales
restriction in the second phase of 1,313,340 shares held by 110 incentive objects with a repurchase price of RMB
6.01 per share, and buys back and cancels the 120,000 restricted stocks held by the three original incentive
subjects who left for personal reasons with a repurchase price of RMB 5.73 per share, thus a total of 1,433,340
restricted stocks shall be repurchased and cancelled. The afore-mentioned restricted stocks have not yet completed
the repurchase and cancellation procedures at the China Securities Depository and Clearing Corporation Limited
Shenzhen Branch.
On April 7, 2020, because the repurchase and cancellation of some restricted stocks will reduce the registered
capital of the company, according to the Company Law and other relevant laws and regulations, the company
disclosed the Announcement on Capital Reduction of Repurchase and Cancellation of Some Restricted Stocks
(No.2020-23), and hereby notified creditors that creditors have the right to require the company to pay off debts or
provide corresponding guarantees within 45 days from the date of this announcement. If the creditor fails to
exercise the above rights within the prescribed time limit, the repurchase and cancellation will continue to be
implemented according to legal procedures.
4.Regarding the repurchase and cancellation of some restricted stocks and the repurchase and cancellation of
restricted stocks held by 6 original incentive objects
On June 8, 2020, the company held the 30th meeting of the 7th Board of Directors and the 21st meeting of
the 7th Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Some
Restricted Stocks, aiming to repurchase and cancel the 57,150 restricted stocks held by the five original incentive
objects who resigned for personal reasons, with a repurchase price of 5.73 yuan/share; It is proposed to repurchase
and cancel 5,760 restricted stocks held by 1 original incentive object who resigned due to retirement, with the
repurchase price of 6.14 yuan/share. To sum up, a total of 62,910 restricted stocks were repurchased and
cancelled.
34
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
On June 29, 2020, the company held the 2019 Annual General Meeting of Shareholders to review and
approve the Proposal on Repurchase and Cancellation of Some Restricted Stocks, agreeing that the company will
repurchase and cancel 57,150 restricted stocks held by 5 original incentive objects who resigned for personal
reasons at a repurchase price of 5.73 yuan/share, and agree that the company will repurchase and cancel 5,760
restricted stocks held by 1 original incentive object who resigned due to retirement at a repurchase price of 6.14
yuan/share.
On June 30, 2020, because the repurchase and cancellation of some restricted stocks will reduce the
registered capital of the company, according to the Company Law and other relevant laws and regulations, the
company disclosed the Announcement on Capital Reduction of Repurchase and Cancellation of Some Restricted
Stocks (No.2020-30), and hereby notified creditors that creditors have the right to require the company to pay off
debts or provide corresponding guarantees within 45 days from the date of this announcement. If the creditor fails
to exercise the above rights within the prescribed time limit, the repurchase and cancellation will continue to be
implemented according to legal procedures.
XIII.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Whe
ther
over
Tradin Mar
Princi Amo the ket
Subjec Rati g limit
ple of unt appr Way price
ts of o in Date
Relate Type pricin Price of approv of of Index of
Relatio the simi of
d of g the of trade oved pay simil information
nship related lar discl
parties trade related trade (ten ed(ten men ar disclosure
transa trad osure
transa thous limit t trade
ctions es
ctions and) thousa avail
ed or able
nd)
not
(Y/N
)
Kunsh Purc
an Jingjia hase
Zhiqi ng of http://www.cni
Sellin
mei Group' prod Marke Marc nfo.com.cn On
g Agree
Materi s ucts t 10,14 13.0 Tran 1014 h March 14，
polari ment 14,937 No
als shareh from Princi 0.56 0% sfer 0.56 14,20 2020(Announ
zing price
Techn olding relat ple 20 cement No.：
film
ology compa ed 2020-15)
Co., ny parti
Ltd. es
Kunsh Jingjia Sale Purch Marke Agree 7,843 8.80 26,744 No Tran 7843 Marc http://www.cni
35
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
an ng of ase of t ment .22 % sfer .22 h nfo.com.cn On
Zhiqi Group' good optical Princi price 14,20 March 14，
mei s s to film ple 20 2020(Announ
Materi shareh relat produ cement No.：
als olding ed cts 2020-15)
Techn compa parti and
ology ny es releva
Co., nt
Ltd. materi
als
17,98
Total -- -- -- 41,681 -- -- -- -- --
3.78
Details of any sales return of a
Not applicable
large amount
Give the actual situation in the
report period where a forecast had
been made for the total amounts of
Not applicable
routine related-party transactions
by type to occur in the current
period(if any)
Reason for any significant
difference between the transaction
Not applicable
price and the market reference
price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □No
Due from related parties
Related Relations Causes Does Opening Newly Amount Interest Interest Ending
36
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
parties hip of there exist balance increased recovered rate in the balance
formatio non-opera (ten amount in in the reporting (ten
n tion thousand) the reporting period(te thousand)
capital reporting period(ten n
occupanc period(ten thousand) thousand)
y? thousand)
Shenzhen
Investm
Dailishi Sharing
ent No 40.48 50 90.48 0
Underwea company
dividend
r Co., Ltd.
Anhui
Investm
Huapeng Joint
ent No 180 180
Textile venture
dividend
Co., Ltd.
Kunshan
Jinjiang
Zhiqimei
Group's
Materials Sale
shareholdi No 5,389.38 7,843.22 7,600.23 5,632.37
Technolog products
ng
y Co.,
company
Ltd.
The
Chairman
Shenzhen
of the
Tianma
Company Sale
Microelec No 73.3 80.09 104.08 49.31
was Vice products
tronics
Chairman
Co., Ltd.
of the
company
Influence of the related
rights of credit and During the reporting period, the creditor's rights of related parties were formed by normal production,
liabilities upon the operation and investment activities. There was no financial risk caused by the occupation of funds by
company’s operation related parties, nor was there any damage to the company's interests caused by unfair prices of related
results and financial transactions.
position
Due to related parties
Amount
Amount
newly Interest in
repaid in Ending
Opening increased the
Related Relationshi Causes of the balance
balance(ten in the Interest rate reporting
parties p formation reporting (ten
thousand) reporting period(ten
period(ten thousand)
period(ten thousand)
thousand)
thousand)
37
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Shenzhen
Xinfang Sharing Current
24.48 24.48
Knitting company amount
Co., Ltd.
Shenzhen
Changlianf
Sharing Current
a Printing 158.09 158.09
company amount
& dyeing
Co., Ltd.
Yehui
Sharing Current
Internation 121.67 0.75 122.42
company amount
al Co., Ltd.
SAPO
Sharing Current
（HK）Co., 31.5 31.5
company amount
Ltd.
Shenzhen
Guanhua
Sharing Current
Pringing & 381.11 381.11
company amount
Dyeing
Co., Ltd.
Kunshan
Jinjiang
Zhiqimei
Group's
Materials Purchase 5,624.5 10,140.56 9,673.66 6,091.4
shareholdin
Technology
g company
Co., Ltd.
Influence of the related
rights of credit and
During the reporting period, the debts of related party was caused by normal production and
liabilities upon the
operation activities, and there was no act damaging the interests of the Company and its
company’s operation
shareholders.
results and financial
position
5. Other significant related-party transactions
□ Applicable √Not applicable
No such cases in the reporting period.
XIV. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
38
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
2.Significant Guarantees
√ Applicable □ Not applicable
（1）Guarantees
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Amount
happening Actual Complete for
Name of the date/No. of of Guarantee
(Date of mount of Guarantee type implementation associated
Company the Guarante term
signing guarantee or not parties
guaranteed e
agreement) (Yes or no)
amount
Guarantee of the company for its subsidiaries
Guarante
Related Date of Actually
Name of the Amount Complete e for
announceme happening(dat guarante Guarantee Guarante
company of implementatio related
nt date and e of signing e type e term
guaranteed guarantee n or not party(yes
no. agreement) amount
or no)
Shenzhen Guaranteein Two
March
Shengbo 48,000 0 g of joint years No No
18,2020
Optoelectroni liabilities from the
39
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
c Technology date of
Co., Ltd. expiratio
n of the
principal
debt
Total of guarantee for Total of actual guarantee
subsidiaries approved in the 48,000 for subsidiaries in the 0
period(B1) period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries approved at 48,000 for subsidiaries at 0
period-end(B3) period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure Actual for
Name of the Amount happening implementatio
date/No. of mount of Guarantee Guarante associate
Company of (Date o n
the guarante type e term d
guaranteed guarantee signing or
guaranteed e parties
agreement) not
amount (Yes or
no)
The Company’s total guarantee(i.e. total of the first three main items)
Total amount of
Total guarantee quota approved in guarantee actually
48,000 0
the reporting period（A1+B1+C1） incurred in the reporting
period（A2+B2+C2）
Total balance of the
Total guarantee quota already
actual guarantee at the
approved at the end of the 48,000 0
end of the reporting
reporting period（A3+B3+C3）
period（A4+B4+C4）
The proportion of the total amount of actually guarantee in
0.00%
the net assets of the Company (that is A4+B4+C4）%
Including：
Description of the guarantee with complex method
None
40
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
(3)Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB
Source of funds for The Occurred Amount
Un-recovered of
Specific type entrusted financial of Entrusted Undue balance
overdue amount
management Wealth-management
Bank financial
Self fund 86,500 77,900 0
products
Total 86,500 77,900 0
The detailed information of entrusted wealth-management with significant amount or low safety, poor liquidity or
high risk with no promise of principal
√ Applicable □Not applicable
In RMB10,000
Name Type Pro Am Ca Star Expi Fun Metho Refe Exp Act The Amo Wh Whe Su
of of duc oun pit t ry ds d of renc ecte ual actua unt ethe ther mm
Trust Truste t t al Dat Date Allo Rewar e d prof l of r ther ary
ee e Typ So e catio d Ann Inc it reco provi pass e is of
Orga Organi e urc n Deter ualiz ome and very sion ed any eve
nizati zation( e minati ed (if loss of for the entr nts
on or on Rate any duri profi impa stat uste and
(or Truste of ) ng t and irme utor d relat
Trust e) Retu the loss nt (if y fina ed
ee rn rep durin any) proc ncia sear
Name orti g the edur l ch
) ng repor e plan inde
peri ting in x (if
od perio the any)
d futu
re
SPD
Bank
Co., Ban
Stru Feb
ltd. Sel Aug k Due Not
ctur ruar Prem
Feng 28, f ust fina paymen 3.85 appl
Bank e y 539 0 aturit Yes
huan 000 Fu 3,20 ncial t at a % icab
Dep 5,2 y
g nd 20 prod time le
osit 020
Build ucts
ing
Branc
41
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
h
SPD
Bank
Co.,
Ban
ltd. Stru Mar Sept
Sel k Due Not
Feng ctur ch emb Prem
12, f fina paymen 3.85 233 appl
huan Bank e 12, er 0 aturit Yes
000 Fu ncial t at a % .57 icab
g Dep 202 14,2 y
nd prod time le
Build osit 0 020
ucts
ing
Branc
h
40, 772
Total -- -- -- -- -- -- 0 -- -- -- --
000 .57
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
4. Other significant contract
√ Applicable □Not applicable
Com Company Contract Cont Book Assess A Base Pricing Tran W Co Exe Date Disclos
pany Name of Object ract Value ed pp Date Principle sacti he nne cuti of ure
Nam the Other Sign of the Value rai of on th cti on Discl Index
e of Party of ing Assets of the sal Asse Pric er on Co osure
the the Date Involv Assets A ssm e A Rel ndit
Party Contract ed by Involv ge ent (RM Re ati ion
Maki the ed by nc (if B10, lat on As
ng Contra the y any) 000) ed Of
the ct Contra N Tr The
contr (RMB ct a ac End
act 10,00 (RMB m tio Of
0) (If 10,00 e n The
Any) 0) (If Rep
A orti
ny ng
) Peri
od
SAP Hangzho Nitto Nov Consideri Wit In Nove Http://
u Jinjiang Denko emb h nor mber
O ng the www.c
Group provides er 6, no mal 7,
Phot Co., Ltd., polarize 201 formulatio ass perf 2017 ninfo.c
oelec Kunshan r 7 n of oci orm om.cn:
Zhiqimei manufac N 86,9 N ati anc
tric market (Annou
Material turing o 00 o on e
Technolo technolo price and rel ncemen
gy Co., gy and technical ati t
Ltd., related ons
service No. :20
Japan corporat hip
Nitto ion. period, the wit 17-53)
42
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Denko final h on
Corporati the
transactio Novem
on co
n price is mp ber 7,
based on any 2017
the
commerci
al
negotiatio
n results
of both
parties.
XVI. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Yes
Main
Emission Implemen
Company pollutant Emission Verified
Emission port ted Total Excessive
or and Emission concentra total
port distributi pollutant emission emission
subsidiary specific way tion emission(
number on emission condition
name pollutant (mg/Nm3) Tons)
condition standards
name
The
discharge
Shenzhen
Exhaust port is
Shengbo
gas: total located
Optoelec
non-meth Altitude on the <100mg/ 120mg/m
tronic 2 <84t/a 100.8t/a No
ane emission east side m3 3
Technol
hydrocarb of the
ogy Co.,
ons roof of
Ltd.
Building
No. 1
Shenzhen
Shengbo Open
厂
Optoelect channel
Effluents Southeast
ronic discharge 1 <35mg/L 40mg/L <16.6t/a 18.98/a No
：COD side of
Technolo after
plant area
gy Co., treatment
Ltd.
Prevention and control of pollution facilities construction and operation
43
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The waste gas treatment facility adopted the RTO waste gas regenerative incineration process of Shengbo
Optoelectronic . which can fully meet the emission requirements of discharge gas. The removal rate of organic
waste gas VOCs reached more than 99%,Meanwhile, the equipment adopted the imported thermal storage
material, with the heat storage effect reached 90%, so that the equipment operation had low energy consumption;
after RTO treatment, the exhaust gas produced by the production process can meet the discharge standard.
SAPO Photoelectric wastewater treatment facility has improved Fenton system in the early stage. At present,
UASB anaerobic+aerobic+MBR membrane+coagulation sedimentation wastewater treatment process is adopted.
The process is characterized by strong impact load resistance, stable system operation, low energy consumption,
low maintenance and operation cost, high automation degree and good effluent treatment effect. The wastewater
from the production process can meet the environmental protection requirements after being treated by wastewater
treatment facilities.
Situation of Construction project environmental impact assessment and other environmental protection
administrative licenses
The Company complied with relevant environmental protection regulations at such three stages as project design,
construction and operation and obtained environmental protection approvals needed at each corresponding stage
including EIA report, EIA approval, environmental protection acceptance decision and emission permit among
others.
Emergency Plan for Emergency Environmental Incidents
According to the actual situation of the company, the preparation of the emergency plan for emergency
environmental incidents was completed, and an emergency environmental emergency plan filing application
Environmental Self-Monitoring Program
Surveillance done subject to surveillance requirements made by the surveillance station and operation needs of all
systems of SAPO ，the specific monitoring programs are as follows: organic exhaust gas is 8 times per year (2 per
quarter), wastewater discharge is 4 times per year (once per quarter), boiler exhaust gas is 2 times per year (once
every six months), and canteen fume is 2 times per year (once every six months), the noise at the plant boundary
is 2 times per year (once every six months).
Other Environmental Information That Should Be Disclosed
None
Other Environmental Related Information
None
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.
XVII.Other material events
√ Applicable □Not applicable
(I) Progress of polarizer industrialization project for ultra-large TV (Line 7)
44
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
In order to meet the capital demand for the construction of Line 7 project, the 28th meeting of the 7th Board
of Directors reviewed and approved the Proposal on Subsidiaries Applying for Mortgage Loans from Banks and
the Proposal on Providing Guarantee for Subsidiaries' Mortgage Loans, and the Second Extraordinary General
Meeting of Shareholders in 2020 reviewed and approved the Proposal on Providing Guarantee for Subsidiaries'
Mortgage Loans, and agreed that Shengbo Optoelectronics Co., Ltd., a subsidiary, will apply for a fixed asset loan
of RMB 800 million from the syndicate led by Shenzhen Branch of Bank of Communications Co., Ltd. with some
of its self-held properties, with a term of no more than 8 years, and the specific terms and terms are subject to the
actually signed loan contract; It is agreed that the company will provide joint liability guarantee for the above loan
matters according to the shareholding ratio of 60%, and waive the guarantee fee payable to the company, and
authorize the legal representative of the company or its authorized representative to handle the above guarantee
matters on behalf of the company and sign the guarantee contract and any other documents related to this
guarantee; It is agreed that the company and Jinjiang Group, another guarantor, will make an agreement on issues
related to joint liability guarantee. For details, please refer to Announcement No.2020-18, 2020-19 and 2020-22 of
cninfo (http://www.cninfo.com.cn).
In order to meet the needs of downstream panel customers, improve the overall production efficiency of Line
7 project and enhance the competitiveness of the enterprise, SAPO Photoelectric, a subsidiary, increases its
investment by 147.2 million yuan to build one RTP production line and 2 RTS production lines, with its own
funds and bank loans. For details, please refer to Announcement No.2020-25 of CNInfo
(http://www.cninfo.com.cn).
As of the disclosure date of this report, the Line 7 project has completed the capping of the main plant and
the manufacturing of extension equipment. Affected by the Coronavirus epidemic, due to labor shortages,
insufficient supply of engineering materials and equipment, transportation restrictions, etc., the construction of the
Line 7 project was not fully resumed until mid-March 2020. The company further strengthened the monitoring
and management of budget, schedule, quality and other aspects, rearranged the construction time node, and is
currently carrying out the purification and decoration engineering construction and the installation of extension
machine equipment. It is planned to complete the main machine equipment debugging in February 2021, and start
the trial production.
During the reporting period, the Company has prudently demonstrated that it will invest 147.2 million yuan
in the construction of 1 RTP production line and 2 RTS production lines on the Line 7 project. The source of funds
is its own funds and bank loans. The main reasons for this increase in investment are first to meet the needs of
downstream panel customers and enhance the depth of customer cooperation; second, to help improve the overall
production efficiency of the Line 7 project, simplify the production process, and effectively reduce production
costs; third, to further improve Enterprise competitiveness provides guarantee for the successful operation of Line
7 project. For the above details, please refer to the "Announcement on the Increase of Investment and
Construction Progress in the Industrialization Project of Polarizers for Ultra-large TVs (Line 7)" by Juchao
Information Network (http://www.cninfo.com.cn) on April 30, 2020. (No. 2020-25).
As of June 30,2020, the total investment contract amount of the Line 7 project was 1,477.8032 million yuan,
and the actual paid-in investment was 1052.9322 million yuan (with raised funds of 409.951 million yuan, and its
own funds and government funds of 642.9812 million yuan used).
（II）Progress of Renting of Guanhua Building
In order to further revitalize the Company's existing assets, concentrate resources on its main business and
stimulate the vitality of the enterprise, the Proposal on Transfer of 50.16% Equity of Shenzhen Guanhua Printing
and Dyeing Co., Ltd. was deliberated and passed at the 22nd meeting of the 7th Board of Directors and the 2nd
Extraordinary General Meeting in 2019. It was agreed that the Company would transfer 50.16% of Guanhua
45
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
equity held by the Company through public listing at a price of not less than 340,468,300 yuan in Shenzhen
United Property and Share Rights, which was approved by the state-owned assets management department for
filing. However, due to market reasons and changes in relevant conditions, after comprehensive consideration by
the Company, the shares of Guanhua are not listed on Shenzhen United Property and Share Rights, and the
Company will choose a suitable time to list within the validity period of the underlying equity evaluation report
(August 30, 2020) according to market conditions and in combination with the actual operation of the Company.
For details, please refer to the Announcement of 2019-55,2019-63 and 2019-71 on the website of
http://www.cninfo.com.cn.
XVIII. Material events of subsidiaries
√ Applicable □Not applicable
(I) Matters concerning the company's compensation for arbitration and its subsidiaries' annual performance
commitments in 2019
On March 9, 2020, the company received the Notice of Arbitration (No.452 -2) from Shenzhen International
Arbitration Court and the Application for Arbitration submitted by Hangzhou Jinjiang Group Co., Ltd., which is
the applicant of this arbitration while the company is the respondent. Hangzhou Jinjiang Group Co., Ltd.
submitted the following arbitration requests: 1. The ruling made the following changes to the Cooperation
Agreement: (1) Delete the original Article 3.1 of the Cooperation Agreement and the relevant unfulfilled rights
and obligations will no longer be fulfilled (2) Delete the original Article 6.4 of the Cooperation Agreement, and
the relevant unfulfilled rights and obligations will no longer be fulfilled; 2. The respondent shall bear the
arbitration fee of the case and the actual expenses of the arbitral tribunal. The applicant reserves the right to
further modify the arbitration request.
On March 9, 2020, the company received the Notice of Arbitration (No.452 -2) from Shenzhen International
Arbitration Court and the Application for Arbitration submitted by Hangzhou Jinjiang Group Co., Ltd., which is
the applicant of this arbitration while the company is the respondent. Hangzhou Jinjiang Group Co., Ltd.
submitted the following arbitration requests: 1. The ruling made the following changes to the Cooperation
Agreement: (1) Delete the original Article 3.1 of the Cooperation Agreement and the relevant unfulfilled rights
and obligations will no longer be fulfilled (2) Delete the original Article 6.4 of the Cooperation Agreement, and
the relevant unfulfilled rights and obligations will no longer be fulfilled; 2. The respondent shall bear the
arbitration fee of the case and the actual expenses of the arbitral tribunal. The applicant reserves the right to
further modify the arbitration request. For details, please refer to the Announcement of 2020-07 on the website of
http://www.cninfo.com.cn.
On March 26, 2020, the company received the Notice on Extending the Time Limit Appointed by Arbitrators
(2020 SGZS No.452 -3) delivered by Shenzhen International Arbitration Court. Due to the complexity of the
dispute and the special epidemic background, the applicant needs extra time to negotiate and communicate the
procedural matters of the case with the respondent, so it applies to Shenzhen International Arbitration Court to
extend the time limit for appointing arbitrators in this case. Shenzhen International Arbitration Court believes that
the applicant's request is reasonable, and both parties are requested to notify Shenzhen International Arbitration
Court in writing of the arbitrator's appointment result before March 30, 2020. Therefore, the company shall
appoint an arbitrator before March 30, 2020 instead of within 15 days after receiving the arbitration notice on
March 9, 2020, and notify the Shenzhen International Arbitration Court of the results in writing. For details,
please refer to the Announcement of 2020-21 on the website of http://www.cninfo.com.cn.
46
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
On April 17, 2020, the company received the Notice of Arbitral Tribunal Composition (2020 SGZS No.452-4)
from Shenzhen International Arbitration Court. Both parties to the arbitration informed Shenzhen International
Arbitration Court in writing of the results of arbitrator selection according to the arbitration procedure before
March 30, 2020, and appointed 1 arbitrator respectively and 1 chief arbitrator together. On April 16, 2020, the
arbitration tribunal was formed to hear the case.
As of the disclosure date of this report, the company has entrusted a lawyer to submit evidence and materials
of this arbitration to the arbitration tribunal in accordance with the arbitration procedures, and submitted a letter of
invitation for the applicant to clarify the arbitration request and arrange the hearing. However, due to the epidemic,
the arbitration has not yet been held, and the time of the court session has yet to be scheduled. In view of the
company's involvement in the above arbitration and the uncertainty of the arbitration results, Jinjiang Group's
unfulfilled commitment to the company's subsidiary SAPO Photoelectric in 2019 is uncertain. The company will
continue to pay attention to the follow-up progress of this arbitration and fulfill its information disclosure
obligations in a timely manner.
(III) Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary SAPO Photoelectric signed the Changxing Junying
Equity Investment Partnership (Limited Partnership) Agreement with the fund manager Huizhi Investment
Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners, and co-sponsored the
establishment of an industrial fund, focusing on the optical film industry chain related projects related to the
company's main business, with a fund size of 50 million yuan. SAPO Photoelectric, as one of the limited partners
of the industrial fund, subscribed for a capital contribution of 28.5 million yuan.
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial and
commercial registration and completed the private equity investment fund registration on February 8, 2018. For
details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).
As of December 31, 2019, Changxing Junying had accumulated 3 investment projects with a total investment of
42 million yuan.
Fund contribution
No Name Investment
（RMB 10,000）
1 Shenzhen Kaichuang Shijia Technology Co., Ltd. Optical Film 1,400
2 Shenzhen Shenfuyu Electronic Technology Co., Ltd. Optical Film 1,300
3 Shenzhen Hengbaoshun Technology Development Co., Ltd. Optical Film 1,500
47
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proporti Capitali
on zation
Share of
Bonus Quantit Proporti
allotme commo Other Subtotal
shares y on
nt n
reserve
fund
1.Shares with 2,893,8 2,892,5
0.57% -1,275 -1,275 0.57%
conditional subscription 30 55
1.State -owned shares 0 0.00% 0 0 0 0.00%
2. State-owned legal
0 0.00% 0 0 0 0.00%
person shares
2,893,8 2,892,5
3.Other domestic shares 0.57% -1,275 -1,275 0.57%
30 55
Incl：Domestic legal
0 0.00% 0 0 0 0.00%
person shares
Domestic Natural Person 2,893,8 2,892,5
0.57% -1,275 -1,275 0.57%
shares 30 55
4.Foreign share 0 0.00% 0 0 0 0.00%
Incl：Foreign legal
0 0.00% 0 0 0 0.00%
person share
Foreign Natural
0 0.00% 0 0 0 0.00%
Person shares
II.Shares with
506,444 506,445
unconditional 99.43% 1,275 1,275 99.74%
,599 ,874
subscription
1.Common shares in 457,016 457,017
89.73% 1,275 1,275 90.00%
RMB ,599 ,874
48
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
2.Foreign shares in 49,428, 49,428,
9.70% 0 0 9.73%
domestic market 000 000
3. Foreign shares in
0 0.00% 0 0 0 0.00%
foreign market
4.Other 0 0.00% 0 0 0 0.00%
III. Total of capital 509,338 100.00 509,338 100.00
0 0
shares ,429 % ,429 %
Reasons for share changed
√ Applicable □Not applicable
Reasons for this share change: Zhang Xiaodong, the employee supervisor of the company, partially unlocked
the company's shares this year, adding 1,275 shares with unlimited sales conditions.
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
√ Applicable □Not applicable
Progress on any share repurchase:
√ Applicable □Not applicable
For details, please refer to Section V, "XII. Implementation of the Company's Equity Incentive Plan, Employee
Stock Ownership Plan or Other Employee Incentive Measures (III) Progress of Restricted Stock".
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
In Shares
Number of
Number of Restricted
Initial Increased Reason for Date of
Shareholder Unrestricted Shares in the
Restricted Restricted Restricted Restriction
Name Shares This End of the
Shares Shares This Shares Removal
Term Term
Term
Top
Zhang
5,250 1,275 0 3,975 management January 1,2020
Xiaodong
locking shares
49
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Total 5,250 1,275 0 3,975 -- --
Ⅱ.Issuing and listing
□ Applicable √Not applicable
III. Shareholders and shareholding
In Shares
Total number of preferred
Total number of common shareholders that had restored
shareholders at the end of 30,787 the voting right at the end of 0
the reporting period the reporting period (if any)
(note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Number of share
Amount Amount
Proportio of Changes pledged/frozen
of of
Shareholders Nature of n of shares in
restricte un-restric
shareholder shares held at reporting State of
d shares ted shares Amount
held（%） period period share
held held
-end
Shenzhen
Investment State-owned 234,069 234,069,4
45.96% 0
Holdings Co., legal person ,436 36
Ltd.
Shenzhen
Shenchao
State-owned 16,129, 16,129,03
Technology 3.17% 0
Legal person 032 2
Investment
Co., Ltd.
Domestic Nature 3,224,7
Sun Huiming 0.63% 0 3,224,767
person 67
Domestic Nature 3,000,0
Shao Hua 0.59% 3,000,000 3,000,000
person 00
Domestic Nature 2,873,0
Li Songqiang 0.56% 0 2,873,078
person 78
Domestic Nature 2,823,0
Su Weipeng 0.55% 2,823,066 2,823,066
person 66
Domestic Nature 2,327,1
Lv Qiang 0.46% 2,327,146 2,327,146
person 46
Li Zengmao Domestic Nature 0.29% 1,478,6 331,997 1,478,697
50
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
person 97
Kuang Domestic Nature 1,400,2
0.27% -52,600 1,400,200
Guowei person 00
Domestic Nature 1,338,9
Hong Fan 0.26% 0 1,338,900
person 00
Strategy investors or general legal
person becomes top 10
None
shareholders due to rights issued
(if applicable)（See Notes 3）
Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
Shenzhen Investment Holdings Co., Ltd., According to the decision of the State-owned
Assets Supervision and Administration Commission of Shenzhen Municipal People's
Government, Shenzhen Shenchao Technology Investment Co., Ltd was transferred to
Shenzhen Major Industrial Investment Group Co., Ltd in June 2019. Shenzhen Investment
Explanation on shareholders Holdings Co., Ltd and Shenzhen Shenchao Technology Investment Co., Ltd are both
participating in the margin trading controlled by the State-owned Assets Supervision and Administration Commission of the
business Shenzhen Municipal People's Government, so they are persons acting in concert. Except
this, the Company did not whether there is relationship between the top ten shareholders
holding non-restricted negotiable shares and between the top ten shareholders holding
non-restricted negotiable shares and the top 10 shareholders or whether they are persons
taking concerted action defined in Regulations on Disclosure of Information about
Shareholding of Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Shenzhen Investment Holdings Common shares
234,069,436 234,069,436
Co., Ltd. in RMB
Shenzhen Shenchao Technology Common shares
16,129,032 16,129,032
Investment Co., Ltd. in RMB
Foreign shares
Sun Huiming 3,224,767 in domestic 3,224,767
market
Common shares
Shao Hua 3,000,000 3,000,000
in RMB
Common shares
Li Songqiang 2,873,078 2,873,078
in RMB
Common shares
Su Weipeng 2,823,066 2,823,066
in RMB
Common shares
Lv Qiang 2,327,146 2,327,146
in RMB
51
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Common shares
Li Zengmao 1,478,697 1,478,697
in RMB
Common shares
Kuang Guowei 1,400,200 1,400,200
in RMB
Common shares
Hong Fan 1,338,900 1,338,900
in RMB
Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
Shenzhen Investment Holdings Co., Ltd., According to the decision of the State-owned
Assets Supervision and Administration Commission of Shenzhen Municipal People's
Explanation on associated
Government, Shenzhen Shenchao Technology Investment Co., Ltd was transferred to
relationship or consistent action
Shenzhen Major Industrial Investment Group Co., Ltd in June 2019. Shenzhen Investment
among the top 10 shareholders of
Holdings Co., Ltd and Shenzhen Shenchao Technology Investment Co., Ltd are both
non-restricted negotiable shares
controlled by the State-owned Assets Supervision and Administration Commission of the
and that between the top 10
Shenzhen Municipal People's Government, so they are persons acting in concert. Except
shareholders of non-restricted
this, the Company did not whether there is relationship between the top ten shareholders
negotiable shares and top 10
holding non-restricted negotiable shares and between the top ten shareholders holding
shareholders
non-restricted negotiable shares and the top 10 shareholders or whether they are persons
taking concerted action defined in Regulations on Disclosure of Information about
Shareholding of Shareholders of Listed Companies.
The Company Shareholder Shao Hua holds 3,000,000 shares of the Company through stock
Explanation on shareholders account with credit transaction ; The Company Shareholder Li Songqiang holds 2,872,653
participating in the margin trading shares of the Company through stock account with credit transaction; The Company
business(if any )(See Notes 4) Shareholder Kuang Guowei holds 1,400,000 shares of the Company through stock account
with credit transaction.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
52
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
53
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
VIII Information about convertible corporate bonds
□ Applicable √Not applicable
During the reporting period, the company did not have convertible corporate bonds.
54
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
IX. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2019 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Independent
He Qiang Dimission January 16,2020 The expiry of his term
director
The original independent director resigned after the
Wang Kai Independent Elected January 16,2020
expiry of his term
Chairman of
Wang Weixing board of Dimission January 16,2020 Job Change
supervisors
Chairman of
The former chairman of the board of supervisors
Ma Yi board of Elected January 16,2020
resigns
supervisors
Shareholder
Li Lei Dimission January 16,2020 Job Change
supervisor
Shareholder
Yuan Shuwen Elected January 16,2020 The former shareholder supervisor resigns
supervisor
55
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
X. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual report
No
56
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
XI. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
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
57
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Inventories 465,530,597.15 391,717,935.12
Contract assets
Assets held for sales
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
58
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Derivative financial liabilities
Notes payable
Account payable 226,976,267.97 241,297,770.64
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
59
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Total of liability 628,599,086.55 676,784,315.81
Owners’ equity
Share capital 507,835,189.00 509,338,429.00
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
60
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
61
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Derivative financial liabilities
Note payable
Account payable 411,743.57 411,743.57
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
62
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
63
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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 in
2,075,398.37 52,056,251.94
come attributable to owners of the pare
nt 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
64
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under t
he equity method investee can not be re
classified into profit or loss.
3. Changes in the fair value of
1,687,081.80 51,249,010.40
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will 388,316.57 807,241.54
be reclassified into profit or loss.
1.Other comprehensive income under t
he equity method investee can be reclas
sified 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 in
come 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
65
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
(II)Diluted earnings per share 0.0014 0.0153
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
66
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Less：Income tax expenses 5,102,958.61 8,655,961.40
IV. Net profit 13,973,577.78 24,689,982.39
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 benefit
plans of changes in net debt or net ass
ets
2.Other comprehensive income under
the equity method investee can not b
e 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 under
the equity method investee can be re
classified 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
67
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
financial statements
7.Other
VI. Total comprehensive income 16,048,976.15 76,746,234.33
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
68
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
merchandise and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in financial assets
held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing
fee and commission
Cash paid 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
69
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
and other operational units
Other cash paid for investment
1,654,000,000.00 985,495,790.87
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
70
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
71
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
72
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 2,727,
509,338, 1,974,92 16,139,0 119,737, 90,596,9 49,307,764. 1,126,85 3,854,615,5
the end of 764,1
429.00 2,248.03 03.40 783.31 23.39 03 1,425.82 70.18
last year 44.36
Add:
Change
of
accoun
ting
policy
Correcting
of previous
errors
Merger of
entities
73
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
under
common
control
Other
II. Balance
2,727,
at the 509,338, 1,974,92 16,139,0 119,737, 90,596,9 49,307,764. 1,126,85 3,854,615,5
764,1
beginning of 429.00 2,248.03 03.40 783.31 23.39 03 1,425.82 70.18
44.36
current year
III .Changed
-1,503,2 -7,110,3 -8,613,5 2,075,39 2,795, -9,710,9 -6,915,782.4
in the 719,734.74
40.00 25.20 65.20 8.37 133.11 15.59 8
current year
（1）Total
2,075,39 2,795, -9,710,9 -6,915,782.4
comprehens 719,734.74
8.37 133.11 15.59 8
ive income
（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 inves
ted by share
holders
2．Holders o
f other equit
y instrument
s invested c
74
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
apital
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
shareholders
)
4．Other
(IV) Internal
transferring
of owners’
75
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
76
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 2,730,
507,835, 1,967,81 7,525,43 121,813, 90,596,9 50,027,498. 1,117,14 3,847,699,7
at the end of 559,2
189.00 1,922.83 8.20 181.68 23.39 77 0,510.23 87.70
this term 77.47
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
77
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
debt
I .Balance at 2,373,
511,274, 1,865,71 27,230,6 1,339,20 80,004,8 -57,774,473. 1,086,15 3,459,480,5
the end of 329,9
149.00 6,983.63 79.00 8.41 03.23 41 0,534.88 26.74
last year 91.86
Add:
Change
147,3
of 147,376, 147,376,128
76,12
accoun 128.10 .10
8.10
ting
policy
Correcting
of previous
errors
Merger of
entities
under
common
control
Other
II.Balance
2,520,
at the 511,274, 1,865,71 27,230,6 148,715, 80,004,8 -57,774,473. 1,086,15 3,606,856,6
706,11
beginning of 149.00 6,983.63 79.00 336.51 03.23 41 0,534.88 54.84
9.96
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.
78
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
ive income 51.94 8 92 135.00 92
（II）
Investment
or
decreasing
of capital by
owners
1．Ordinary
Shares inves
ted by share
holders
2．Holders o
f other equit
y instrument
s invested c
apital
3．Amount
of shares
paid and
accounted
as owners’
equity
4．Other
（III）Profit
allotment
1.Providing
of surplus
reserves
79
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
2.Providing
of common
risk
provisions
3．Allotment
to the
owners (or
shareholders
)
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
80
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
up losses by
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 2,580,
511,274, 1,865,71 27,230,6 200,771, 80,004,8 -49,942,185. 1,072,34 3,652,943,0
at the end of 594,6
81
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
this term 149.00 6,983.63 79.00 588.45 03.23 43 59.88 8,399.88 59.76
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 Speciali Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv zed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
1,589,869, 16,139,0 110,764,037.7 90,596,923. 637,234,475.1 2,921,664,
I.Balance at the end of last year 509,338,429.00
499.36 03.40 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, 16,139,0 110,764,037.7 90,596,923. 637,234,475.1 2,921,664,
509,338,429.00
year 499.36 03.40 4 39 5 361.24
-7,110,325 -8,613,5 16,048,97
III .Changed in the current year -1,503,240.00 2,075,398.37 13,973,577.78
.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 -7,110,325 -8,613,5
-1,503,240.00
by owners .20 65.20
82
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The first half year of 2020
Other Equity instrument
Less: Other Speciali Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv zed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
1．Ordinary Shares invested by sharehol
ders
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted
as owners’ equity
-7,110,325 -8,613,5
4．Other -1,503,240.00
.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)
3．Making up losses by surplus reserves.
83
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The first half year of 2020
Other Equity instrument
Less: Other Speciali Total of
Items Prefe Capital Surplus Retained
Share capital Sustain Shares Comprehensiv zed Other owners’
rred Other reserves reserves profit
able in stock e Income reserve equity
stock
debt
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, 7,525,43 112,839,436.1 90,596,923. 651,208,052.9 2,937,713,
IV. Balance at the end of this term 507,835,189.00
174.16 8.20 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
reserves Share Comprehensive ized reserves owners’equity
84
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Sust
Preferred
aina Other
stock
ble
debt
27,23
511,274,149.0 1,599,025,454 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 .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 1,599,025,454 80,004,803. 2,786,481,774.
0,679 139,741,593.13 483,666,452.70
year 0 .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 sharehol
ders
2．Holders of other equity instruments in
vested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other
（III）Profit allotment
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The first half year of 2019
Other Equity instrument
Less:
Other Special
Items Capital Share Surplus Total of
Sust
Share Capital Preferred Comprehensive ized Retained profit Other
aina Other reserves s in reserves owners’equity
stock Income reserve
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
The first half year of 2019
Other Equity instrument
Less:
Other Special
Items Capital Share Surplus Total of
Sust
Share Capital Preferred Comprehensive ized Retained profit Other
aina Other reserves s in reserves owners’equity
stock Income reserve
ble stock
debt
2．Used this term
（VI）Other
27,23
511,274,149.0 1,599,025,454 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 .96 23 35
.00
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 stat
ements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi Industrial Development Co.,
Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. Shenzhen Beaufity Garments
Co., Ltd. ,Shzhen Shenfang Import & Export Co., Ltd., and Shengtou (Hongkong) Co., Ltd.
The scope of consolidated financial statements this period did not change.
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
This company ’ s financial statements is based on going-concern assumption and worked out according to
actual transactions and matters, Accounting Standard for Business Enterprises--Basic Standard(issued by No.33
Decree of the Ministry of Finance and revised by No.76 Decree of the Ministry of Finance) issued by the Ministry
of Finance, 42 special accounting standards enacted and revised on and after Feb 15, 2006, guideline for
application of accounting standard for business enterprises, ASBE interpretations and other relevant
regulations(hereinafter collectively referred to as “Accounting Standard for Business Enterprises”) and No.15 of
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public-- General
Provisions of Financial Reports (revised in 2014) issued by China Securities Regulatory Commission.
(2)Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips:
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 control
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 involved in other
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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’ own
accounting period or accounting policies. Where a subsidiary was acquired during the reporting period through a
business combination not under common control, the financial statements was reconciliated on the basis of the fair
value of identifiable net assets at the date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, are
eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are presented separately
in the consolidated balance sheet within shareholders ’ / owners ’ equity and net profit. Net profit or loss
attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the
consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 int
erests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
（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 investmen
ts .
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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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,
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 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.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
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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.
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
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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.
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
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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.
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
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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 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
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non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of
acquisition of a long-term equity investment acquired not through business combination also includes all directly
associated expenses, applicable taxes and fees, and other necessary expenses. When the significant impact or the
joint control but non-control on the invested party can be implemented due to the additional investment, the
long-term equity investment cost is the sum of the fair value of the equity investment originally held and the new
investment costs based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant
influence are accounted for using the equity method. In addition, the Company's financial statements using the
cost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash
dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon
acquisition of the long-term equity investment, investment income is recognized in the period in accordance with
the attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's ne
t identifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-term
equity investment; the initial investment cost is less than the investee unit share of identifiable net assets at fair val
ue, the difference is recognized in profit or loss, while the long-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in
the fair values of the investee’s identifiable net assets at the time of acquisition, no adjustment shall be made to
the initial investment cost. The carrying amount of an long-term equity investment measured using the equity
method is adjusted by the Company's share of the investee's net profit and other comprehensive income, which is
recognised as investment income and other comprehensive income respectively. The carrying amount of an
long-term equity investment measured using the equity method is reduced by profit distribution or cash dividends
announced by the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive income and
profit distribution, which is adjusted to capital reserves。The net profit of the investee is adjusted by the fair value
of the investee's identifiable assets as at acquistion. The financial statements and hence the net profit and other
comprehensive income of an investee which does not adopt accounting policies or accounting period uniform with
the Company is adjusted by the Company's accounting policies and accounting period. The Company's share of
unrealised profit or loss arising from related party transactions between the Company and an associate or joint
venture is deducted from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted. Where assets
transferred to an associate or joint venture which form part of the Company's investment in the investee but which
does not enable the Company obtain control over the investee, the cost of the additional investment acquired is
measured at the fair value of assets transferred and the difference between the cost of the additional investment
and the book value of the assets transferred is recognised in profit or loss. Where assets transferred to an associate
or joint venture form an operation, the difference between the consideration received and the book value of the
assets transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture form
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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 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
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loss of control is recognised in profit or loss. Cumulative other comprehensive income relevant to the investment
recognised, as a result of accounting by equity method or recognition and measurement principles applicable to
financial instruments, prior to the Company's acquisition of control over the investee is treated in the same manner
that the investee disposes the relevant assets or liabilities on the date of loss of control. The investee's equity
movement other than net profit, other comprehensive income and profit distribution, as a result of accounting by
equity method, is reocgnised in profit or loss when control is lost. Where the remaining investment is measured by
equity method, the fore-mentioned other comprehensive income and other equity movement are recognised in
profit or loss proportionate to the disposal; Where the remaining investment is measured in accordance with the
recognition and measurement principles applicable to financial instruments, the fore-mentioned other
comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of
investment in the investee, the remaining investment in the investee is measured in accordance with the
recognition and measurement principles applicable to financial instruments, the difference between the fair value
and the book value of the remaining investment at the date of loss of joint control or significant influence is
recognised in profit or loss. Cumulative other comprehensive income relevant to the investment recognised, as a
result of accounting by equity method, prior to the partial disposal is treated in the same manner that the investee
disposes the relevant assets or liabilities on the date of loss of joint control or significant influence. The investee's
equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profit
or loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals shall
be viewed as one single transaction, the multiple disposals is accounted for one single transaction which result in
the Company's loss of control over the investee. Each difference between the consideration received and the book
value of the investment disposed is recognised in other comprehensive income and reclassified in full to profit or
loss at the time when control over the investee is lost.
23.Investment property
The measurement mode of investment property
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.
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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
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
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the life of the lease assets. ④ the least present value of the lease payment of the tenant and the least present value
of the lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date
respectively. ⑤ the leasing assets have the special nature, and only the tenant can use if there is no major
modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shall
be book kept according to the lower between the fair value of the leasing assets and the least lease payment on the
lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be withdrawn
for the fixed assets acquired under finance leases as per the depreciation policy of own fixed assets.
25.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and the cost can
be reliably measured. Meanwhile, the projects under construction shall be measured according to the actual cost
occurred before the assets are built to achieve the expected usable condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual project costs
when the expected usable condition achieved. For the expected usable condition achieved while the final accounts
for completed projects not handled yet, the projects shall be transferred into the fixed assets as per the estimated
value. After the final accounts for completed projects handled, the original estimated value shall be adjusted as per
the actual cost, but the original withdrawn depreciation shall not be adjusted again.
26.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing
expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current
term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
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
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occurred during the current period (including the amortization of discount or premium recognized as per the
effective interest method) minus the interest income acquired after the borrowings deposit in bank or the
investment income obtained from the temporary investment. For the general borrowings for the purchase and
construction of qualified assets, the capitalized interest amount of the general borrowings shall be computed and
recognized according to the weighted average of accumulative asset expense beyond the expense of the special
borrowings, multiplying the capitalization rate of general borrowings.
27.Biological Assets
Not applicable
28.Oil & Gas assets
Not applicable
29. Right to use assets
Not applicable
30.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software, which are
conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the intangible assets.
For the finite service life of the intangible assets, the years of service life or the quantity of service life formed and
the number of similar measurement unit shall be estimated. If the term of economic benefits of the intangible
assets brought for the company is not able to be foreseen, the intangible assets shall be recognized as that with the
indefinite service life.
(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
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the indefinite term of intangible assets recognized as the indefinite service life of intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights, but the
indefinite service life of contract provision or legal provisions. ② unable to judge the term of economic benefits
brought by the intangible assets for the company after the integration of information in the same industry or the
relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with the indefinite
service life, and the relevant department that uses the intangible assets, shall conduct the basic review by the
method from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is the
change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized according to the
expected implementation mode of the economic benefits related to the intangible assets during the service life,
and the line method shall be adopted to amortize for the intangible assets unable to reliably recognize the expected
implementation mode. The specific service life is as follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall make the
review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance sheet date, the
corresponding impairment provision shall be withdrawn according to the difference between the book value and
the recoverable amount. The intangible assets with the indefinite service life and without the usable condition
shall be conducted the impairment test every year whether the impairment exists.
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
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development stage of the company is as follows: (1) the investigation stage planned to obtain the new technology
and knowledge, shall be recognized as the research stage, which has the features of planning and exploration. (2)
before the commercial manufacture and use, the research results or other knowledge should be applied for the plan
or design, in order to produce the new or improved stages with substantial materials, devices and products, which
should be recognized as the development stage, and this stage has the features of pertinence and more possibility
to create the achievement.
31.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment, the
investment property measured by the cost mode, the fixed assets and the projects under construction if there is
possible impairment on the balance sheet date. If there exists the evidence shows that the long-term assets have
the impairment, the impairment test should be conducted, and the recoverable amount should be estimated. The
impairment shall be confirmed if there exists after the comparison of the estimated recoverable amount of the
assets and its book value, and if the assets impairment provision shall be withdrawn to recognize the
corresponding impairment losses. The estimation of the recoverable amount of assets should be confirmed
according to the higher one between the net amount of the fair value minus the disposal costs and the present
value of the cash flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by the business
combination and the intangible assets with the indefinite service life whether there exists the impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future accounting period.
32.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and subsequent
period (together of more than one year).
The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be averagely
amortize within the benefit period or the specified period. If the long-term unamortized expense can’t make the
benefits for the future accounting period, the amortized value of the unamortized project shall all be transferred
into the current profits and losses.
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
compensation as the liability and record into the current profits and losses or the relevant assets cost as per the
beneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan
according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balance
sheet date during the accounting period, shall be recognized as the liability, and recorded into the current profits
and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and mutually
consistent actuarial assumptions to make evaluation of demographic variables and financial variables, measure
and define the obligations arising from the benefit plan, and determine the period of the relevant obligations. The
company shall discount all the defined benefit plan obligations, including the obligation within twelve months
after the end of the annual report during the expected services provision of employee. The discount rate adopted in
discounting shall be recognized according to the bonds matched with the defined benefit plan obligation term and
the currency at the balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present value of the
defined benefit plan obligations minus the fair value of the defined benefit plan assets are recognized as the net
liability or the net assets of the defined benefit plan. If there exists the surplus of the defined benefit plan, the
lower one between the surplus of the define benefit plan and the upper limit of assets shall be used to measure the
net assets of the defined benefit plan. The upper limit of assets refers to the present value of economic benefits
obtained from the refund of the defined benefit plans or the reduction of deposit funds of future defined benefit
plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are recognized as the
service costs, the net interests on the net liabilities or the net assets of the defined benefit plan, and the changes
caused by the net liabilities and the net assets of the defined benefit plan that re-measured. Of which, the service
costs and the net interests on the net liabilities or the net assets of the defined benefit plan shall be recorded into
the current profits and losses or the relevant assets costs, the changes caused by the net liabilities and the net
assets of the defined benefit plan that re-measured shall be recorded into other comprehensive incomes, which
should not be switched back to the profits and losses during the subsequent accounting period, but the amount
recognized from other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the early date
and recorded into the current profits and losses: (1) when the company can’ t withdraw the demission welfare
provided due to the rundown suggestion or the termination of labor relations plans. (2) when the company
recognizes the costs or the expenses related to the reorganization of demission welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the termination of labor
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
relations plans at its side and when the costs relevant to the recombination of dismission welfare payment, shall be
recognized as the liabilities arising from the compensation due to the termination of labor relations with staff and
shall be recorded into the current profits and losses. Then company shall reasonably predict and recognize the
payroll payable arising from the dismission welfare. The dismission welfare, which is expected to finish the
payment within twelve months after the end of the annual report recognized, shall apply to the relevant provisions
of short-term compensation. The dismission welfare, which is expected to be unfinished for the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of the defined
contribution plan, the accounting treatment shall be made in accordance with the defined contribution plan.
Except for these, other long-term benefits shall be made the accounting treatment according to the defined benefit
plan, but the changes arising from the re-measurement of net liabilities or net assets of other long-term employee
benefits shall be recorded into the current profits and losses or the relevant assets costs.
35.Lease liabilities
Not applicable
36. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product quality
assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of the fixed assets and
other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the expenditure
required to settle the present obligation. There is the continuous scope for the required expenditure, and the best
estimate with the same possibilities resulted from various outcomes within the scope shall be recognized as per
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
shall not exceed the book value of the estimated liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If there is
conclusive evidence that the book value cannot really reflect the current best estimate, the adjustment shall be
made for the book value in accordance with the current best estimate.
37. Share payment
1.Accounting Treatment Methods of Share Payment
Share payment is a transaction which is for obtaining the service provided by employees or other parties, where
thus the equity instrument is granted , or for bearing the liability confirmed basing on the equity instrument. Share
payment is divided into the payment settled by equities and the payment settled by cash.
(1)Shared Payment settled by Equities
The share payment settled by equities, which is used for exchanging the service provided by employees, will
be measured according to the fair value of the equity instrument granted to employees on date of grant. The
amount of such fair value, under the situation that the rights can only be exercised after the service is finished and
the set performance is achieved within the waiting period, and basing on the optimum estimation for the number
of equity instrument which exercise rights within the waiting period, will be measured according to straight-line
method and counted into relevant costs and expenses. When the rights can be exercised immediately after being
granted, the payment will be counted into relevant costs and expenses, and the capital reserve will be increased
correspondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum estimations
according to the newly-obtained subsequent information after the changes occurred in the number of employees
who exercise rights so as to modify the predicted number of the equity instrument of exercising rights. The
influence from above-mentioned estimations will be counted into relevant costs and expenses at the current period,
and the corresponding adjustment will be made for the capital reserve.
If the fair value of the other parties’service can be reliably measured, the share-based payment settled by equities
which is used for exchanging the service of other parties will be measured according to that fair value on date of
acquisition. If not, but the fair value of the equity instrument can be reliably measured, the payment will be
counted according to the fair value of the equity instrument on date of service acquisition, and it will be counted
into relevant costs and expenses, and the equity of the shareholders will be increased correspondingly.
(2) Share Payment settled by Cash
The share payment settled by cash will be measured according to the fair value of the liability confirmed basing
on the shares borne by the Company and other equity instruments. If the rights can be exercised immediately after
being granted, the payment will be counted into relevant costs or expenses and the liability will be increased
correspondingly. If the rights can only be exercised after the situation that service within the waiting period is
completed and set performance is achieved, the service obtained at the current period,according to the fair value
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
balance between the equity instrument before modification and the equity instrument after modification on
modification date. If decrease occurred in the total fair value of the equity instrument after the modification or
methods which are unbeneficial to employees are adopted in the modification, accounting treatment will still
continue to be made for the service obtained, and such changes will be regarded as changes that have never
occurred unless the Company has canceled partial or all equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat the cancelled
equity instrument as the accelerated exercise of power, and immediately include the balance that should be
recognized in the remaining waiting period into the current profit and loss, and simultaneously confirm the capital
reserve. If the employee or other party can choose to satisfy the non-exercisable condition but not satisfied in the
waiting period, then the company will treat it as cancellation of the granted equity instrument.
3. Accounting treatment involving the share payment transaction between the Company and the shareholders
or the actual controller of the Company
Where involves the share payment transaction between the Company and the shareholders or the actual
controller of the Company and one of the parties of the settlement company and the service-accepting company is
within the company and the other is not within the company, then the company performs the accounting treatment
in the consolidated financial statements of the company according to the following provisions:
(1) If the settlement company settles in its own equity instrument, then it treats the equity payment
transaction as the equity-settled equity payment; otherwise, it treats as the cash-settled equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized as a
long-term equity investment in the service-accepting company in accordance with the fair value of the equity
instrument or the fair value of the liability it is assumed to bear on the grant date, and the capital reserve (other
capital reserve) or liabilities shall be recognized at the same time.
(2) If the service-accepting company has no settlement obligation or confers its own equity tools on the
employees of the company, then such equity payment transaction shall be treated as equity-settled equity payment;
if the service-accepting company has the settlement obligation and confers the employees of the company with not
its own equity instrument, then such equity payment transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company, and the
service-accepting company and the settlement company are not the same company, then the confirmation and
measurement of the equity payment transaction shall be carried out respectively in the financial report of the
service-accepting company and the settlement company, with the same analogy of the above-said principle.
38. Other financial instruments such as preferred stocks and perpetual bonds
Not applicable
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
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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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
in the financial support policy and it is expected to receive financial support funds, the government subsidies shall
be recognized according to the amount receivable. In addition, government grants are confirmed upon actual
receipt.
Asset-related government grants are recognized as deferred income and are charged to profit or loss for the
current period in a reasonable and systematic manner over the useful life of the relevant assets. Revenue-related
government subsidies, which are used to compensate for the related costs or losses of the Company in the future
period, are recognized as deferred income, and are recognized in the profits and losses of the current period in the
period in which the relevant costs, expenses or losses are recognized. The relevant costs, expenses or losses that
have been used to compensate the Company have been directly recorded in the current profits and losses.
Government grants related to the company's daily activities are included in other income; those unrelated to the
daily activities of the company are included in non-operating income.
For the policy-subsidized discounted loans obtained by the company, the accounting treatment is divided into
the following two cases: when the finance allocates the interest-subsidy funds to the loan bank and the loan bank
provides the company with a policy-based preferential interest rate, the company uses the actual amount of the
loan received as the entry value of the loan, and calculates the relevant borrowing costs according to the loan
principal and the preferential policy interest rate; if the finance allocates the interest-free funds directly to the
company, the company will reduce the relevant borrowing costs by the corresponding discount interest.
41.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and
the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm
the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable
temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall
recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible
temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in
the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
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
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transaction doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference related
to the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following
requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the temporary
difference. (2) the temporary difference is possible to not be reversed in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible to
obtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the book
value of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are
recorded into the owner’s equity when the original recognition, others shall be recorded into the current income
tax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income is
possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the transactions and
items directly recorded into the stockholders’ equity, shall be recorded into other comprehensive incomes or the
stockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from
the business combination, but the rest of the current income tax and the deferred income tax expense or income
shall be recorded into the current profits and losses.
42.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant assets cost
or recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall
be directly recorded into the current profit and loss. The contingent rental shall be recorded into the current profit
and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current profits and
losses as per the line method, and the initial direct expense occurred shall be directly recorded into the current
profit and loss, except that the large amounts are capitalized and recorded into the profit and loss by stages. The
contingent rental shall be recorded into the current profit and loss once the actual occurrence.
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
new financial instrument standards
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 Adopted at the 27th meeting of the 7th http://www.cninfo.com.cn On March
well as enterprises listed overseas and Board of Directors 14,2020(Announcement No.:2020-14)
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.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
（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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
121
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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.
122
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 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 receivable 17,039,506.00 17,039,506.00
Including：Interest
7,329,228.31 7,329,228.31
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
123
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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.
125
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 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%
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 Custo
ms and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development
of New-type Display Device Industry (Cai Guan Shui (2016) No. 62), Shenzhen Shengbo Optoelectronic Technol
ogy Co., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices includin
g colorful light filter coating and polarizer sheet that comply with the planning for independent development of do
mestic industries may enjoy the preferential policies of exemption from import tariff for the import of raw materia
ls and consumables for the purpose of self use and production that can not be produced domestically from January
1, 2016 and December 31, 2020.
3.Other
None
126
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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.
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
127
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
（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 the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance 89,284,511.43
Total 89,284,511.43
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
（ 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
Proport Amoun Proport value Proport Amoun Proport value
Amount Amount
ion(%) t ion(%) ion(%) t ion(%)
Accrual of bad 1,936,
12,788, 10,852, 84.86 12,753,1 10,823, 1,929,27
debt provision by 2.71% 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 97.29 23,197, 382,700, 19,304, 363,395,
debt provision by 5.06% 83,81 96.78% 5.04%
,723.32 % 913.27 561.55 807.40 754.15
portfolio 0.05
Including：
437,4
471,470 100.00 34,050, 395,453, 100.00 30,128, 365,325,
Total 7.22% 19,87 7.62%
,399.99 % 523.45 698.96 % 669.58 029.38
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.
Guangdong Ruili 1,298,965.36 649,482.68 50.00% Beyond the credit
129
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Baolai Technology period for a long time,
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
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
130
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Amount of change in the current period
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balance
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
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
131
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 .
（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
132
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
（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
133
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) 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
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 Closing
Category
balance Accrual collected Write-off Other balance
amount
Accrual of bad
debt provision 1,575,667.61 114,166.37 1,461,501.24
by single item
134
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
(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
Items Closing book balance Opening book balance
135
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 transit 1,618,894.41 48,491.27 1,570,403.14
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 Closing
Items
balance Accrual collected Write-off Other balance
amount
Raw materials 31,148,714.05 2,332,142.48 4,422,472.90 29,058,383.63
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 transit 48,491.27 48,491.27
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 of No Use of relevant materials
Raw materials
polarizer products in this period, the
136
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
realizable net value of relevant
materials was lower than their
inventory cost.
Due to a decline in the market price of No Selling related finished goods
polarizer products in this period, the
Finished product realizable net value of relevant
materials was lower than their
inventory cost.
Semi-finished product Selling related finished goods
Due to a decline in the market price of No
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 of No Selling related finished goods
polarizer products in this period, the
Goods in transit realizable net value of relevant
materials was lower than their
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
137
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
□ 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
138
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
17. Long-term equity investment
In RMB
Increase /decrease
Profits Closing
and Cash
Withdr balance
losses
bonus
Openin on awal of of
Investe Additio Decreas investm Other Change or Closing
g impair impair
es nal e in ents compre s in balance
profits Other
balance investm investm Recogn hensive other ment ment
ent ent ized income equity announ
provisi provisi
under ced to
the on on
equity issue
method
I. Joint ventures
Anhui
Huapen
g 10,098, -51,447 10,047,
Textile 833.77 .40 386.37
Co.,Ltd
.
Shenzh
en
Guanhu
a 129,62 128,64
-974,22
Printin 3,072.6 8,851.1
1.54
g& 9 5
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
Printin
76.14 11 60.25
g&
dyeing
Compa
ny
Jordan 902,26 -924,09 6,568.8 -15,259
139
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Garmen 9.19 7.64 4 .61
t
Factory
Hongko
ng
Yehui
9,135,0 -395,65 381,74 9,121,1
Internat
77.93 0.38 7.73 75.28
ional
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
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
140
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Reasons for
Amount of being measured Reasons for
other at fair value other
Recognized comprehensive and whose comprehensive
Accumulating Accumulating
Name dividend income changes are income
income losses
income transferred to 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
Xinfang Long-term
156,000.00 1,703,903.00
Knitting Co., holding
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
Long-term
Junying
holding
Investment
141
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
assets\ Transferred from 1,277,175.96 1,277,175.96
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 the 3,243,096.97 3,243,096.97
142
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
143
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
3.Decreased amount
247,000.00 27,453.00 274,453.00
of the 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
144
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
145
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
146
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
Industr
ializati
on
The
project
main
of
body
polaroi 1,959, 839,44 115,38 954,82
48.73 of the
d for 498,40 3,318. 0,920. 4,238. Other
% buildin
super 1.80 50 47 97
g has
large
been
size
capped
TV
(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
147
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
Not applicable
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
148
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
current period
(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
149
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the Increase Decrease
investees or the Opening Closing
The merger of
events formed balance disposition balance
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 Closing
Investee
year-begin balance
Provision disposition
Shenzhen
2,167,341.21 2,167,341.21
Beauty Century
Garment Co.,
150
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Unattained internal
2,457,864.47 368,679.67 2,502,421.73 375,363.26
sales profits
151
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 tax base of
62,083,693.36 15,520,923.34 77,651,921.36 19,412,980.34
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
Items Balance in year-end Balance in year-begin
152
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Items Book Provision Book value Book Provision Book value
balance for balance for
devaluation devaluation
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
32. Short-term borrowings
（1）Categories of short-term loans
Not applicable
(2) Situation of Overdue Outstanding Short-Term Borrowing
153
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
154
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
155
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
156
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
44.Other current liabilities
Not applicable
157
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Decreased this
Items Beginning of term Increased this term End of term Reason
term
Formation of
Govemment
121,264,571.22 1,190,000.00 6,070,094.81 116,384,476.41 government
Subsidy
subsidy
Total 121,264,571.22 1,190,000.00 6,070,094.81 116,384,476.41 --
Details of government subsidies：
In RMB
158
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 1,500,00 250,000 1,249,99 Related
narrow 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 introduction 43,164.3 7,194.0 35,970.2 Related
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 425,000. 25,000. 399,999. Related
Phase 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
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
0.00 .00 0.00 to assets
6)
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
00.00 99.99 00.01 to assets
project
56,815.6 56,815.6 Related
Energy saving transformation grant funds 0.00
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 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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 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
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
December 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCD
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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.
20. According to Measures for Management of Science and Technology Research & Development Funds in
163
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 shares 00 0 0 00
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 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.
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 Increase in the current Decrease in the current Year-end balance
balance period 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
Year-beginning Decrease in the current
Items Increase in the current Year-end balance
balance 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
In RMB
Year-begi Amount of current period Year-e
Items nning Amount Less： Less： Less： After-ta After-ta nd
balance incurred Amount Prior Income x x balanc
165
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
before transferred period tax attribute attribute e
income into profit included expense to the to
tax and loss in in other s parent minority
the current composi compan sharehol
period that te y der
recognied income
into other transfer
comprehen to
sive retained
income in income
prior in the
period current
period
1. Other comprehensive income 119,87
118,183,6 2,249,44 562,360. 1,687,08
that cannot be reclassified in the 0,740.
58.54 2.38 58 1.80
loss and gain in the future 34
Changes in fair value of 119,87
118,183,6 2,249,44 562,360. 1,687,08
investments in other equity 0,740.
58.54 2.38 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
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
90,596,923.39 90,596,923.39
reserve
166
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 year
49,307,764.03 -57,774,473.41
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
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:
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Total 13,380,921.28 7,369,804.52
Other note：None
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Other 48,530.44 153,133.07
Total 24,561,050.95 19,172,388.20
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
70. Gains on the changes in the fair value
Not applicable
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
12,301,144.92
in 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
Return insurance settlement
4,033,846.00
income
Total 20,431.28 4,247,261.65 20,431.28
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Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
recognized deductible temporary differences or deductible loss
Impact of income tax relief preferences -145,228.98
Income tax expense 5,258,391.87
172
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
173
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Loss on disposal of fixed assets, intangible
6,837.44 -12,236,686.25
assets and other long-term deferred assets
Loss on scrap of fixed assets 3,275.19
Financial cost 221,034.71 -730,687.94
174
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 liabilities -3,892,057.00
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
III. Balance of cash and cash equivalents
173,706,279.73 268,646,588.18
at 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:
175
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
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
176
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Development Centre (TRC) 3,000,000.00 Deferred income 150,000.00
grants
Shenzhen polarizing
materials and Technology
500,000.00 Deferred income 25,000.02
Engineering Laboratory
innovation venture capital
177
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
500,000.00 Deferred income 25,000.02
polarizer 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 related
356,671.43 Deferred income 356,671.43
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
Shenzhen municipality (R&D
of key technology of
6,000,000.00 Deferred income 0.00
high-performance polarizer
for large size display panel of
2018N007)
178
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
(2) Combined cost and goodwill
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
179
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
180
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 Share-holding ratio
Subsidiary Main operation Business nature Acquired way
place Directly Indirectly
Shenzhen Lishi
Domestic trade,
Industry 100.00% Establish
Shenzhen Shenzhen Property
Development
Management
Co., Ltd
Accommodatio Establish
Shenzhen 100.00%
Shenzhen Shenzhen n, restaurants,
Huaqiang Hotel
business center;
Shenfang
Property Property 100.00% Establish
Shenzhen Shenzhen
Management Management
Co., Ltd.
Production of Establish
Shenzhen
fully electronic
Beauty Century 100.00%
Shenzhen Shenzhen jacquard
Garment Co.,
knitting whole
Ltd.
shape
Shenzhen Polarizer
Shengbo
Ophotoelectric Shenzhen Shenzhen production and 60.00% Purchase
Technology sales
Co., Ltd
Shenzhen Establish
Shenfang Shenzhen Shenzhen Operating 100.00%
Import & import and
181
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Name attributable to
non-controlling interest non-controlling interest non-controlling interest
non-controlling 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
Subsid Non-c Total Non-c Total
Curren Total t urrent Curren Total t urrent
iaries urrent liabilit urrent liabiliti
t assets assets liabiliti Liabili t assets assets liabiliti Liabili
assets ies assets es
es ties es ties
Shenz
hen
Sheng
bo
1,361, 1,839, 3,201, 308,44 115,02 423,46 1,455, 1,778, 3,233, 312,41 119,77 432,19
Ophot
796,54 533,42 329,97 8,333. 1,642. 9,976. 718,29 011,92 730,22 9,750. 4,431. 4,182.
oelectr
2.29 8.67 0.96 70 86 56 5.17 5.06 0.23 90 23 13
ic
Techn
ology
Co.,
182
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
Ophotoelec 802,362,70 -28,210,56 -28,210,56 -114,179,3 893,168,31 -35,069,02 -35,069,02 73,481,662
tric 3.39 4.14 4.14 79.34 2.79 3.71 3.71 .86
Technolog
y 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
associates
Shenzhen Property
Shenzhen Shenzhen 50.16% Equity method
Guanhua leasing
183
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Printing &
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 parent
212,854,954.34 214,797,182.29
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
184
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
185
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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,
186
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 at Total
items at level 2 items at level 3
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
187
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
188
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
189
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 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 Bad debt
Balance of Book Balance of Book Balance of Book
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
191
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Kunshan Zhiqimei Material
Account payable 60,914,052.12 56,245,028.58
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
SAPO （ Hongkong ） Co.,
Other payable 315,000.00 315,000.00
Ltd.
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
0
options at the end of the period and the remaining term of the contract
The scope of executive price of the company’s other equity instruments
5.73yuan/shares，0.5 year
at the end of the period and the remaining term of the 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’
192
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 compared
The first restriction lifting period 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 compared
The second restriction lifting period 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 is not less than
The third restriction lifting period 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 company for personal
193
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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 The closing price of the company's stock on grant date - grant
grant date price
On each balance sheet date of the waiting period, it is
determined based on the latest information such as the change
Determination basis of the number of vesting equity instruments
in the number of people that can be released from restrictions
and the completion of performance indicators
Equity-settled share-based payment is included in the accumulated
0.00
amount of capital reserve
Total amount of fees confirmed by equity-settled share-based
0.00
payments in the current period
Other 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
194
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
195
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
196
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
197
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Bad debt
Book balance Book balance Bad debt provision
provision Book Book
Amoun Proport Amoun Proport value Amoun Proport Amoun Proport value
t ion(%) t ion(%) 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
198
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 Closing
Category
balance Accrual collected Write-off Other balance
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
199
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
200
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) 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 Closing
Category
balance Accrual collected Write-off Other balance
amount
Accrual of bad
14,092,950.95 14,092,950.95
debt provision
201
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
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
202
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
1,910,247,78 1,910,247,78 14,415,288.0
Optoelectrion
1.94 1.94 9
c Technology
Co., Ltd.
Shenzhen Lisi
Industrial
8,073,388.25 8,073,388.25
Development
Co., Ltd.
Shenzhen
Beauty
14,696,874.3 14,696,874.3
Centruty 2,167,341.21
4 4
Garment Co.,
Ltd.
Shenzhen
15,489,351.0 15,489,351.0
Huaqiang
8 8
Hotal
Shenfang
Property
1,713,186.55 1,713,186.55
Management
Co., Ltd.
1,950,220,58 1,950,220,58 16,582,629.3
Total
2.16 2.16 0
203
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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 tion of awn of
Add Other Closing
Name g ed ss of other cash impair impair
investm equity Other balance
balance investm Investm compre dividen ment ment
ent changes
ent ent hensive ds or provisi provisi
income profit on on
I. Joint ventures
Anhui
Huapen
g 10,098, -51,447 10,047,
Textile 833.77 .41 386.36
Co.,Ltd
.
Shenzh
en
Guanhu
a 129,62 128,64
-974,22
Printin 3,072.6 8,851.1
1.54
g& 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
Printin
76.14 12 60.26
g and
dyeing
Compa
ny
Jordan
902,26 -924,09 6,568.8 -15,259
Garnent
9.19 7.64 4 .61
Factory
204
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
Yehui
Internat
9,135,0 -395,65 381,74 9,121,1
ional
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 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 the
related to the Company’s business and
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.
206
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual 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
XII．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financial
controller;
2..The originals of all the Company’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period.
3. Other relevant information
The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 20, 2020
207
Shenzhen Textile(Holdings) Co., Ltd.The Semi-Annual Report 2020
208
