Stock code: 000045,200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No. :2020-48
Shenzhen Textile (Holdings) Co., Ltd.
The Third Quarterly Report 2020
1
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
I Important Notice
The Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
All the directors attended the board meeting for reviewing the Quarterly Report.
Mr.Zhu Jun, Person in charge of the Company, 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 this Quarterly Report.
This Report has been prepared in both Chinese and English, in case any discrepancy, the Chinese version shall
prevail.
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
II Basic Information of the Company
1. Main financial data and financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √No
In RMB
As at the end of the Changed （%）over end of
As at the end of last year
reporting period prev. year
Gross assets（Yuan） 4,760,429,824.39 4,531,399,885.99 5.05%
Net assets attributable to the
shareholders of the listed 2,754,887,410.53 2,727,764,144.36 0.99%
company（Yuan）
Between beginning
Increase/decrease
of the year to the Changed （%）over
Reporting period over the same period
end of the report end of prev. year
of last year（%）
period
Operating revenue（Yuan） 616,632,602.23 -2.38% 1,472,945,950.97 -10.21%
Net profit attributable to the
shareholders of the listed 24,726,413.83 172.89% 25,446,148.57 50.63%
company（Yuan）
Net profit after deducting of
non-recurring gain/loss
20,780,909.95 1,447.56% 13,662,964.52 213.00%
attributable to the shareholders
of listed company（Yuan）
Net cash generated from /used in
85,768,341.55 -67.35% -49,851,133.68 -117.40%
operating activities（Yuan）
Basic earning per share
0.0487 173.60% 0.0500 51.06%
(Yuan/Share)
Diluted gains per share
0.0487 173.60% 0.0500 51.06%
(Yuan/Share)
Weighted average return on
0.90% 0.53% 0.93% 0.25%
equity（%）
Items and amount of non-current gains and losses
√ Applicable □ Not applicable
In RMB
Amount (Year-beginning to
Items the end of the report Notes
period.)
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
Non-current asset disposal gain/loss (including the write-off
262,826.07
part for which assets impairment provision is made)
Govemment subsidy recognized in current gain and loss
(excluding those closely related to the Company’s business and 19,189,814.08
granted under the state’s policies)
Other non-operating income and expenditure except for the
-80,453.65
aforementioned items
Less: Amount of influence of income tax 129,760.77
Amount of influence of minority interests（After tax） 7,459,241.68
Total 11,783,184.05 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies 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 recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
2. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
(1) About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the
Shares Held by Top Ten Common Shareholders
In shares
Total preference
shareholders with the voting
Total number of common shareholders at the
29,807 power recovered at the end 0
period-end
of the reporting period (if
any)
Shares held by the top 10 shareholders
Share Amount of tradable Pledging or freezing
Shareholder name Properties of shareholder proportion Quantity shares with Status of
Quantity
% Conditional held the shares
Shenzhen
Investment State-owned legal person 45.96% 234,069,436
Holdings Co., Ltd.
Shenzhen
Shenchao
State-owned
Technology 3.17% 16,129,032
Legal person
Investment Co.,
Ltd.
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
Sun Huiming Domestic Nature person 0.63% 3,224,767
Su Weipeng Domestic Nature person 0.55% 2,823,066
Deng Yan Domestic Nature person 0.45% 2,277,700
Dai Guangxia Domestic Nature person 0.34% 1,720,600
Wang Zhongjing Domestic Nature person 0.33% 1,671,700
Hou Xiulan Domestic Nature person 0.32% 1,612,591
Li Zengmao Domestic Nature person 0.31% 1,590,097
Shen Zhenxing Domestic Nature person 0.29% 1,455,300
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares Share type
Name of the shareholder held at the end of the reporting
Share type Quantity
period
Shenzhen Investment Holdings Co., Ltd. 234,069,436 RMB Common shares
Shenzhen Shenchao Technology Investment Co., Ltd. 16,129,032 RMB Common shares
Foreign shares placed
Sun Huiming 3,224,767
in domestic exchange
Su Weipeng 2,823,066 RMB Common shares
Deng Yan 2,277,700 RMB Common shares
Dai Guangxia 1,720,600 RMB Common shares
Wang Zhongjing 1,671,700 RMB Common shares
Hou Xiulan 1,612,591 RMB Common shares
Li Zengmao 1,590,097 RMB Common shares
Shen Zhenxing 1,455,300 RMB Common shares
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 Holdings Co., Ltd and Shenzhen
Related or acting-in-concert parties among
Shenchao Technology Investment Co., Ltd are both controlled by the
shareholders above
State-owned Assets Supervision and Administration Commission of the
Shenzhen Municipal People's Government. 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
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
of Shareholders of Listed Companies.
Explanation on shareholders participating in the The Company Shareholder Dai Guangxia holds 200,600 shares of the
margin trading business (if any) 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.
(2) Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the
report period
□ Applicable √Not applicable
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
III Significant Events
1. Major changes of main accounting statement items and financial indicators in the reporting period, as
well as reasons for the changes
√ Applicable □ Not applicable
September January 1,2020
Scale of
Items 30,2020（In （In RMB Causes of change
change
RMB10,000 ) 10,000 )
Accounts receivable 53,008.74 36,532.50 45.10% Due to the increase in sales of polarizers.
Due to the decrease in interest receivable in
Other receivables 806.66 1,244.08 -35.16%
the current period.
Due to the input tax to be deducted for
Other current assets 8,416.89 14,082.16 -40.23%
certification, transferred to the tax payable.
Due to the increased investment in the Line
Construction in progress 122,245.46 83,986.63 45.55%
7 project during the current period.
Due to the implementation of the "New
Income Standards" in the current period to
Advance receipt 1,883.22 3,053.01 -38.32%
reclassify this item to contract liabilities
and return the advance trade payment.
Due to the settlement and payment of
Taxes payable 1,056.88 2,254.56 -53.12% corporate income tax of the previous year
in this period.
Due to the loan for the newly added Line 7
Long term loan 25,460.00 0.00 -
project in this period.
Due to the fulfillment of restricted stock
Treasury stock 752.54 1,613.90 -53.37%
repurchase obligations.
Undistributed profit 7,475.39 4,930.78 51.61% Due to profit during the reporting period.
Amount
Amount incurred
incurred in the
in the reporting Scale of
Items previous period Causes of change
period（In change
（In RMB
RMB10,000 )
10,000 )
Due to the increase in sales staff salaries,
Sales expense 2,480.03 1,418.86 74.79%
transportation costs and sales service fees.
Due to increased research and development
R&D expense 4,056.55 2,914.84 39.17%
efforts in this period.
Due to the decrease in interest income in
Financial expense 269.98 46.15 485.01%
this period.
Due to the increase in accounts receivable
Credit impairment loss -926.57 844.72 -209.69% in this period, the provision for bad debts
increased accordingly.
Operating profit 3,075.63 1,045.27 194.24% The sales volume of polarizer products in
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
the current period has increased
significantly, and the growth rate of
operating costs is significantly less than the
growth rate of sales revenue..
Non-operating income Received insurance claims in the same
4.39 475.29 -99.08% period last year, but none during the
reporting period.
Non-perating expense During the reporting period, the tax owed
12.43 0.61 1937.70% before repayment was none in the same
period of the previous year.
Total profit The polarizer business has substantially
3,067.58 1,519.95 101.82%
reduced losses.
Income tax expense Mainly because of the impact of the
869.90 1,550.21 -43.89% epidemic, the profit of the property leasing
business decreased.
Net profit Mainly due to the increase in total profits
2,197.68 -30.27 7360.26%
and the decrease in income tax expenses.
Net cash flow from The trade payment was recovered in the
operating activities -4,985.11 28,653.27 -117.40% same period of last year, but none in this
period.
Net cash flows from During the reporting period, the funds
investing activities received from the recovery of wealth
management investment were more than
the funds paid for investment and wealth
-15,572.56 -67,821.70 77.04%
management, while the funds paid for
investment and wealth management in the
same period last year were more than
recovered.
Net cash flow from During the reporting period, bank loans
financing activities 24,368.10 -47,339.57 151.48% were obtained, and bank loans were repaid
in the same period last year.
2. The progress of significant events and influence, as well as the analysis and explanation on resolving
proposal.
√ Applicable □ Not applicable
(1) Matters concerning the Company's involving arbitration and the subsidiary’s' 2019 performance commitment
compensation
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
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
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.
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.
(2) Progress of Transferring the Equity of Guanhua
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
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 Exchange, and
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
the Company planned to 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.
Due to market reasons and changes in relevant circumstances, the company did not publicly list and transfer
the equity of the target company on the Shenzhen United Property and Share Rights Exchange. As of the
disclosure date of this report, the evaluation report of Guanhua Company has passed its validity period (valid until
August 30, 2020). If the equity transfer continues to be implemented, a new asset evaluation will be required. In
view of the market reasons affected by the new crown pneumonia epidemic this year, combined with the
company's actual operating conditions, the Company, after careful consideration, plans to terminate the transfer of
50.16% of Guanhua's equity. On October 29, 2020, the thirty-third meeting of the seventh board of directors of the
company reviewed and approved the "Proposal on Terminating the Transfer of 50.16% Equity in Shenzhen
Guanhua Printing and Dyeing Co., Ltd.". Due to market reasons and changes in relevant circumstances, the
company agreed to terminate the case above, the proposal still needs to be submitted to the Company’s
shareholders meeting for deliberation. For the above content, please refer to the "Announcement on the
Termination of the Transfer of 50.16% Equity of Shenzhen Guanhua Printing and Dyeing Co., Ltd." (No. 2020-49)
of Juchao Information Network (http://www.cninfo.com.cn).
(3) Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary Shengbo Optoelectronic Co., Ltd signed the
Changxing Junying Equity Investment Partnership (Limited Partnership) Agreement with the fund manager
Huizhi Investment Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners,
and co-sponsored the establishment of an industrial fund, focusing on the optical film industry chain related
projects related to the company's main business, with a fund size of RMB 50 million. SAPO as one of the limited
partners of the industrial fund, subscribed for a capital contribution of RMB 28.5 million. 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 September 30, 2020, Changxing Junying had accumulated 3 investment projects with a total
investment of RMB 42 million.
Fund contribution(In RMB
No Name Investment
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
(4) The matter about the provision of guarantees for subsidiaries to apply for bank mortgage loans
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 SAPO 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 are subjected to “Syndicated Loan for the Industrialization Project
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
of Polarizers for Ultra-Large TVs (Line 7)" and "The Mortgage Contract for the Syndicated Loan for the
Industrialization Projects of Polarizers for Ultra-large TVs (Line 7)" signed by SAPO and the lender; it is agreed
that the Company will provide joint liability guarantee to the above syndicate for 60% of the total debts of SAPO
under the above project loans, of which the principal amount of the secured creditor's rights is RMB 480 million,
and the legal representative of the company or its authorization is authorized Represent the company in handling
the above guarantee matters and sign the guarantee contract and any other documents related to this guarantee. For
details, please refer to Announcement Nos. 2020-18, 2020-19 and 2020-22 on cninfo (http://www.cninfo.com.cn).
As of the date of the disclosure of this report, the company has signed the "Guarantee Contract for Syndicated
Loans for the Industrialization Project of Polarizers for Ultra-large TVs (Line 7)" with Bank of Communications
Co., Ltd. Shenzhen Branch, the guarantee agent of the syndicate. For details, please refer to the "Announcement
on the Progress of the Company's Provision of Guarantees for Subsidiaries" (No. 2020-46) on
cninfo(http://www.cninfo.com.cn) on October 24, 2020.
Announcement Date of disclosure Website for disclosure
Matters concerning the Company's http//www.cninfo.com.cn. Announcement
March 11,2020
involving arbitration for its No.2020-07
subsidiary’s 2019 performance http//www.cninfo.com.cn. Announcement
March 28,2020
commitment compensation No.2020-21
http//www.cninfo.com.cn. Announcement
March 18,2020
No.2020-18
Matters concerning the Company http//www.cninfo.com.cn. Announcement
March 18,2020
providing guarantee for its No.2020-19
subsidiary’s bank mortgage loans http//www.cninfo.com.cn. Announcement
April 7,2020
applied. No.2020-22
http//www.cninfo.com.cn. Announcement
October 24, 2020
No.2020-46
Matters concerning the equity transfer of http//www.cninfo.com.cn. Announcement
October 31, 2020
Guanhua No.2020-49
Progress in the implementation of share repurchase
□ Applicable √Not applicable
Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding
Applicable √Not applicable
3. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer,
directors, supervisors, senior executives or other related parties in the reporting period and commitments
unfinished in implementation at the end of the reporting period
√Applicable □Not applicable
Commit Time of
Period of
Commitment ment Type Contents making Fulfillment
commitment
maker commitment
Commitment on share Shenzhe Share As Shenzhen Investment Holdings Co., Ltd., August 4, Sustained Under
11
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
reform n reducti the controlling shareholder of the company, 2006 and effective Fulfillment
Investm on committed when the restricted-for-sale shares
ent commit from the shares restructuring were listed for
Holding ment circulation in the market: i. if they plan to sell
s Co., the shares through the securities exchange
Ltd. system in the future, and the decrease of the
shares they hold reaches 5% within 6 months
after the first decrease, they will 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
Shenzhen Investment Holdings Co., Ltd.
signed a “Letter of Commitment and
Statement on Horizontal Competition
Avoidance” when the company issued
Commi non-public stocks in 2009. Pursuant to the
tments Letter of Commitment and Statement,
on Shenzhen Investment Holdings Co., Ltd. and
horizon its wholly owned subsidiary, subsidiaries
Shenzhe
tal under control or any other companies that
n
compet have actual control of it shall not be involved
Investm
Commitments made ition, in the business the same as or similar to those October 9, Sustained Under
ent
upon issuance related Shenzhen Textile currently or will run in the 2009 and effective Fulfillment
Holding
transac future, or any businesses or activities that
s Co.,
tion may constitute direct or indirect competition
Ltd.
and with Shenzhen Textile; if the operations of
capital Shenzhen Investment Holdings Co., Ltd. and
occupa its wholly owned subsidiaries, subsidiaries
tion 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
12
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
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 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. 2.
Shenzhen Investment Holdings and its
share-holding subsidiaries or other enterprises
owned the actual control rights can't be
Commi directly and indirectly on behalf of any
tments person, company or unit to engage in the
on same or similar business in any districts in the
horizon future by the form of share-holding, equity
Shenzhe
tal participation, joint venture, cooperation,
n
compet partnership, contract, lease, etc., and ensure
Investm
ition, not to use the controlling shareholder's status July 14, Sustained Under
ent
related to damage the legitimate rights and interests 2012 and effective Fulfillment
Holding
transac of Shenzhen Textile and other shareholders,
s Co.,
tion or to gain the additional benefits. 3. If there
Ltd.
and will be the situation of inter-industry
capital competition with Shenzhen Textile for
occupa Shenzhen Investment Holdings and its
tion 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.
Equity incentive Shenzhe Other 1.The company undertakes not to provide November December Under
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Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
commitment n commit loans, loan guarantees, and any other forms of 27,2017 27,2021 Fulfillment
Textile( ment financial assistance to the incentive objects
Holding for obtaining the restricted stocks in the
s) Co., incentive plan; 2. The company undertakes
Ltd. that there is no circumstance 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
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
4. Financial asset investment
(1) Investment in securities
□ Applicable √ Not applicable
No securities investment during the report period.
(2) Investments in derivatives
□ Applicable √ Not applicable
No derivative investment during the report period.
V. Progress of investment projects with raised funds
Progress of polarizer industrialization project for ultra-large TV (Line 7)
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
14
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
machine equipment. It is planned to complete the main machine equipment debugging in March 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)" on cninfo
(http://www.cninfo.com.cn) on April 30, 2020. (No. 2020-25). As of the disclosure date of this report, the
company has built one RTP production line, and the RTP equipment production is in progress. It is expected to
achieve mass production in Q3 of 2021; one RTS production line is already under construction and is expected to
achieve mass production in Q3 of 2021.
As of Sep. 30,2020, the total investment contract amount of the Line 7 project was 1,573.4259 million yuan,
and the actual paid-in investment was 1,347.7947 million yuan (with raised funds of 409.9510 million yuan, and
its own funds and government funds of 937.8437 million yuan used).
6. Forecast of 2020 business performance
A warning and explanation of the reason for predicting that the cumulative net profit from the beginning of the
year to the end of the next reporting period may be a loss or a significant change compared with the same period
of the previous year
□ Applicable √Not applicable
7. Major contracts for daily operations
□ Applicable √Not applicable
8. Entrusted Financial Management
√ Applicable □ Not applicable
In RMB 10,000
Type Source Amount Unexpired balance Overdue amount
Bank financing product Self fund 77,900 19,000 0
Others Self fund 51,500 51,500 0
Total 129,400 70,500 0
Specific Circumstance of Trust Investment which is Large in single amount, low insecurity, poor in liquidity or
unguaranteed in high risk
√ Applicable □ Not applicable
In RMB10,000
Name Type Pr Amou Ca Star Exp Fun Me Refer Exp Act The Amo W Whet Summ
of of od nt pit t iry ds tho ence ecte ual actual unt het her ary of
Truste Truste uc al Dat Dat All d Annu d prof recov of her there events
e e t So e e oca of alize Inco it ery of provi pas is any and
Organ Organ Ty ur tion Re d me and profit sion sed entru relate
izatio izatio pe ce war Rate (if loss and for the sted d
n (or n (or d of any) duri loss impa stat finan search
15
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
Truste Truste Det Retur ng durin irme uto cial index
e e) erm n the g the nt (if ry plan (if
Name inat repo report any) pro in the any)
) ion rtin ing ced future
g perio ure
peri d
od
Re
SPD pay
Ban
Bank. Str me
Feb k
Fengh uc Aug nt o Rede
Se rua fina
uang tur ust f pr mptio Not
lf ry nci 3.85 539. Ye
Buildi Bank al 28,000 3, inci 539 n at appli
fu 5, al % 54 s
ng de 202 pal matur cable
nd 202 pro
Sub- po 0 and ity
0 duc
Branc sit int
ts
h ere
st
Re
SPD pay
Ban
Bank. Str me
Sept k
Fengh uc Ma nt o Rede
Se emb fina
uang tur rch f pr mptio Not
lf er nci 3.85 233. 233. Ye
Buildi Bank al 12,000 12, inci n at appli
fu 14, al % 57 57 s
ng de 202 pal matur cable
nd 202 pro
Sub- po 0 and ity
0 duc
Branc sit int
ts
h ere
st
Re
de
mpt
China
ion
South Pub
M Sep on
ern Oct lic
on Se tem T
Asset Fund ober fun Not
eta lf ber day 2.20 Unex Ye
Mana comp 30,500 29, d appli
ry fu 8, , % pired s
geme any 202 pro cable
Fu nd 202 arri
nt 0 duc
nd 0 val
Co., ts
on
Ltd.
T+
1
day
China Fund M Se Sep Oct Pub Re 2.20 Unex Ye Not
12,000
South comp on lf tem ober lic de % pired s appli
16
Shenzhen Textile (Holdings) Co., Ltd. The Third Quarterly Report 2020
ern any eta fu ber 29, fun mpt cable
Asset ry nd 15, 202 d ion
Mana Fu 202 0 pro on
geme nd 0 duc T
nt ts day
Co., ,
Ltd. arri
val
on
T+
1
day
772. 773.
Total 82,500 -- -- -- -- -- -- -- -- -- --
57 11
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that may
result in impairment
□ Applicable √ Not applicable
9. Violation of external guarantees
□ Applicable √Not applicable
The Company has no external guarantee get out of the line in the Period
10. Controlling shareholder and its related parties occupying non-business capital of the listed company
□ Applicable √Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company
in Period.
11. Registration form for receiving research, communication, interviews and other activities during the
reporting period
□ Applicable √Not applicable
The company did not receive research, communication, interviews and other activities in Period.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
October 31,2020
17
