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公司公告

深纺织B:2021年半年度财务报告(英文版)2021-08-28  

                         Shenzhen Textile (Holdings) Co., Ltd.




The Semi-Annual Financial Report 2021




              August 2021
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021




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 30,2021
                                                                                                              In RMB

                   Items                        June 30,2021                           December 30,2020

Current asset:

             Monetary fund                                     261,443,764.22                         279,087,236.95

          Settlement provision

Outgoing call loan

Transactional financial assets                                 648,882,159.51                         684,617,260.06

  Derivative financial assets

  Note receivable                                                5,231,381.74                          16,813,657.28

     Account receivable                                        538,927,936.19                         547,310,217.90

     Financing of receivables                                   50,548,060.18                         102,051,314.08

               Prepayments                                      70,098,948.11                          16,902,516.39

          Insurance receivable

        Reinsurance receivable

Provisions of Reinsurance contracts
receivable

     Other account receivable                                  108,479,055.45                           5,265,002.71

     Including:Interest receivable

             Dividend receivable

     Repurchasing of financial assets

     Inventories                                               576,173,756.68                         480,847,581.44

     Contract assets

     Assets held for sales
Shenzhen Textile (Holdings) Co., Ltd.                         The Semi-Annual Financial Report 2021


Non-current asset due within 1 year

     Other current asset                      8,212,405.21                           77,482,083.47

Total of current assets                    2,267,997,467.29                       2,210,376,870.28

Non-current assets:

Loans and payment on other’s behalf
disbursed

Creditor's right investment

  Other creditor's right investment

  Long-term receivable

  Long term share equity investment         132,674,080.11                          147,929,137.23

  Other equity instruments investment       189,268,802.32                          190,607,427.54

Other non-current financial assets           28,500,000.00                           30,650,943.40

  Real estate investment                    109,274,369.86                          110,572,471.92

     Fixed assets                           745,921,085.85                          790,183,905.38

Construction in progress                   1,567,417,773.55                       1,301,750,141.12

     Production physical assets

     Oil & gas assets

     Use right assets

     Intangible assets                       36,047,158.67                           36,048,978.91

  Development expenses

     Goodwill

Long-germ expenses to be amortized            3,405,250.16                            2,876,561.53

  Deferred income tax asset                   5,300,651.26                            5,243,425.26

  Other non-current asset                    95,760,086.27                          143,307,689.66

Total of non-current assets                2,913,569,258.05                       2,759,170,681.95

Total of assets                            5,181,566,725.34                       4,969,547,552.23

Current liabilities

  Short-term loans

 Loan from Central Bank

  Borrowing funds

     Transactional financial liabilities

        Derivative financial liabilities

        Notes payable                         3,982,302.62

     Account payable                        279,982,992.61                          329,468,601.90
Shenzhen Textile (Holdings) Co., Ltd.                         The Semi-Annual Financial Report 2021


        Advance receipts                      3,935,595.88                            3,542,394.33

        Contract liabilities                     21,271.21                              279,631.27

 Selling of repurchased financial assets

Deposit taking and interbank deposit

 Entrusted trading of securities

Entrusted selling of securities

 Employees’ wage payable                    45,886,423.04                           55,642,549.53

 Tax payable                                  7,441,866.20                           12,198,522.02

          Other account payable             136,833,527.76                          156,118,440.42

        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                  478,083,979.32                          557,250,139.47

Non-current liabilities:

Reserve fund for insurance contracts

  Long-term loan                            544,588,606.07                          343,100,174.35

 Bond payable

  Including:preferred stock

  Sustainable debt

          Lease liability

    Long-term payable

Long-term remuneration payable to
staff

 Expected liabilities

        Deferred income                     107,233,810.75                          110,740,322.21

  Deferred income tax liability              58,807,010.27                           59,141,666.58

Other non-current liabilities

Total non-current liabilities               710,629,427.09                          512,982,163.14

Total of liability                         1,188,713,406.41                       1,070,232,302.61

Owners’ equity
Shenzhen Textile (Holdings) Co., Ltd.                                          The Semi-Annual Financial Report 2021


  Share capital                                               506,521,849.00                         507,772,279.00

  Other equity instruments

  Including:preferred stock

  Sustainable debt

 Capital reserves                                         1,961,599,824.63                         1,967,514,358.53

  Less:Shares in stock                                                                                7,525,438.20

Other comprehensive income                                    111,556,642.65                         116,605,932.42

     Special reserve

  Surplus reserves                                             94,954,652.14                          94,954,652.14

Common risk provision

Retained profit                                               148,319,809.42                          86,912,390.50

Total of owner’s equity belong to the
                                                          2,822,952,777.84                         2,766,234,174.39
parent company

Minority shareholders’ equity                            1,169,900,541.09                         1,133,081,075.23

Total of owners’ equity                                  3,992,853,318.93                         3,899,315,249.62

Total of liabilities and owners’ equity                  5,181,566,725.34                         4,969,547,552.23


Legal Representative: Zhang Jian

Person-in-charge of the accounting work:He Fei

Person-in -charge of the accounting organ:Zhu Jingjing

2.Parent Company Balance Sheet

                                                                                                            In RMB

                    Items                      June 30,2021                           December 31,2020

Current asset:

Monetary fund                                                  79,297,562.76                         113,560,327.21

Transactional financial assets                                568,698,848.39                         514,277,000.82

  Derivative financial assets

     Note receivable

     Account receivable                                         2,717,606.50                           1,461,400.20

Financing of receivables

     Prepayments                                                 261,750.00                               18,706.17

  Other account receivable                                      9,932,178.00                           7,450,934.40

     Including:Interest receivable
Shenzhen Textile (Holdings) Co., Ltd.                         The Semi-Annual Financial Report 2021


     Dividend receivable

     Inventories                                 20,509.00                                8,808.00

     Contract assets

     Assets held for sales

Non-current asset due within 1 year

     Other current asset

Total of current assets                     660,928,454.65                          636,777,176.80

Non-current assets:

Creditor's right investment

  Other creditor's right investment

  Long-term receivable

  Long term share equity investment        2,088,722,286.20                       2,103,977,343.32

  Other equity instruments investment       175,803,808.23                          177,142,433.45

Other non-current financial assets

  Real estate investment                    100,788,551.32                          101,644,481.93

     Fixed assets                            21,059,700.06                           21,876,099.34

Construction in progress

     Production physical assets

     Oil & gas assets

     Use right assets

     Intangible assets                          419,760.82                              492,923.62

  Development expenses

     Goodwill

Long-germ expenses to be amortized

  Deferred income tax asset                   5,160,286.97                            5,097,360.00

  Other non-current asset                    95,760,086.27                           96,871,196.43

Total of non-current assets                2,487,714,479.87                       2,507,101,838.09

Total of assets                            3,148,642,934.52                       3,143,879,014.89

Current liabilities

  Short-term loans

     Transactional financial liabilities

        Derivative financial liabilities

        Notes payable

     Account payable                            411,743.57                              411,743.57
Shenzhen Textile (Holdings) Co., Ltd.                        The Semi-Annual Financial Report 2021


        Advance receipts                     2,875,936.58                            2,875,936.58

  Contract liabilities

 Employees’ wage payable                   13,188,552.87                           14,824,723.81

 Tax payable                                 4,841,865.28                           11,497,591.21

          Other account payable            110,541,577.50                           95,023,378.12

        Including:Interest payable

                Dividend payable

        Liabilities held for sales

Non-current liability due within 1 year

Other current liability

Total of current liability                 131,859,675.80                          124,633,373.29

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                        450,000.00                              500,000.00

  Deferred income tax liability             55,815,761.75                           56,150,418.06

Other non-current liabilities

Total non-current liabilities               56,265,761.75                           56,650,418.06

Total of liability                         188,125,437.55                          181,283,791.35

Owners’ equity

  Share capital                            506,521,849.00                          507,772,279.00

  Other equity instruments

  Including:preferred stock

  Sustainable debt

  Capital reserves                        1,577,392,975.96                       1,583,307,509.86

  Less:Shares in stock                                                              7,525,438.20

  Other comprehensive income               102,582,897.08                          107,632,186.85
Shenzhen Textile (Holdings) Co., Ltd.                                               The Semi-Annual Financial Report 2021


  Special reserve

  Surplus reserves                                              94,954,652.14                                94,954,652.14

  Retained profit                                             679,065,122.79                                676,454,033.89

Total of owners’ equity                                    2,960,517,496.97                              2,962,595,223.54

Total of liabilities and owners’ equity                    3,148,642,934.52                              3,143,879,014.89


3.Consolidated Income statement

                                                                                                                    In RMB

                               Items                       The first half year of 2021       The first half year of 2020

I. Income from the key business                                         1,101,536,407.38                    856,313,348.74

  Incl:Business income                                                 1,101,536,407.38                    856,313,348.74

          interest income

          Insurance fee earned

          Fee and commission received

II. Total business cost                                                   963,183,000.35                    847,649,045.52

  Incl:Business cost                                                     863,125,460.07                    760,908,303.61

          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                                        4,281,044.79                      2,689,728.06

          Sales expense                                                    20,493,774.82                     13,380,921.28

          Administrative expense                                           55,327,660.76                     44,347,465.66

          R & D costs                                                      29,170,093.39                     24,561,050.95

          Financial expenses                                               -9,215,033.48                      1,761,575.96

            Including:Interest expense                                       379,800.97                        221,034.71

                          Interest income                                    -840,978.40                     -1,738,185.54

  Add: Other income                                                         8,764,569.01                     13,045,221.53

          Investment gain(“-”for loss)                                 10,152,132.35                     13,932,825.63

          Incl: investment gains from affiliates                             -412,713.12                     -2,253,932.85
Shenzhen Textile (Holdings) Co., Ltd.                                   The Semi-Annual Financial Report 2021


                  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                             914,599.37

         Credit impairment loss                                  -4,347,598.84                  -3,807,687.50

         Impairment loss of assets                              -52,628,070.13                 -35,474,634.93

         Assets disposal income                                         -55.96                      -6,837.44

III. Operational profit(“-”for loss)                        101,208,982.83                  -3,646,809.49

  Add :Non-operational income                                   20,437,452.38                     20,431.28

  Less: Non-operating expense                                      344,978.92                     106,410.77

IV. Total   profit(“-”for loss)                               121,301,456.29                  -3,732,788.98

  Less:Income tax expenses                                       7,878,916.04                  5,258,391.87

V. Net profit                                                   113,422,540.25                  -8,991,180.85

  (I) Classification by business continuity

1.Net continuing operating profit                               113,422,540.25                  -8,991,180.85

2.Termination of operating net profit

  (II) Classification by ownership

1.Net profit attributable to the owners of parent company        76,603,074.39                    719,734.74

2.Minority shareholders’ equity                                 36,819,465.86                  -9,710,915.59

VI. Net after-tax of other comprehensive income                  -5,049,289.77                  2,075,398.37

Net of profit of other comprehensive income attributable to o
                                                                 -5,049,289.77                  2,075,398.37
wners of the parent company.

(I)Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting      -1,003,968.91                  1,687,081.80
period

1.Re-measurement of defined benefit plans of changes in net
debt or net assets

2.Other comprehensive income under the equity method inves
tee can not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity
                                                                 -1,003,968.91                  1,687,081.80
instruments

4. Changes in the fair value of the company’s credit risks

  5.Other

(II)Other comprehensive income that will be reclassified into
                                                                 -4,045,320.86                    388,316.57
profit or loss.
Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021


1.Other comprehensive income under the equity method inves
tee can be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt
obligations

3. Other comprehensive income arising from the
reclassification of financial assets

4.Allowance for credit impairments in investments in other
debt obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements                        -4,045,320.86                       388,316.57

7.Other

Net of profit of other comprehensive income attributable to M
inority shareholders’ equity

VII. Total comprehensive income                                                 108,373,250.48                     -6,915,782.48

Total comprehensive income attributable to the owner of the
                                                                                 71,553,784.62                      2,795,133.11
parent company

 Total comprehensive income attributable minority
                                                                                 36,819,465.86                     -9,710,915.59
shareholders

VIII. Earnings per share

(I)Basic earnings per share                                                            0.1509                           0.0014

 (II)Diluted earnings per share                                                          0.1509                           0.0014

The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.

Legal Representative: Zhang Jian

Person-in-charge of the accounting work:He Fei

Person-in -charge of the accounting organ:Zhu Jingjing

4. Income statement of the Parent Company

                                                                                                                         In RMB

                             Items                              The first half year of 2021       The first half year of 2020

               I. Income from the key business                                  38,146,662.35                     26,969,922.20

                      Incl:Business cost                                         5,346,478.59                      4,305,058.16

                   Business tax and surcharge                                     1,523,347.63                       834,883.15

                         Sales expense
Shenzhen Textile (Holdings) Co., Ltd.                                  The Semi-Annual Financial Report 2021


                   Administrative expense                      19,834,907.43                  13,651,499.00

           R & D expense

     Financial expenses                                          162,410.11                     -158,395.30

         Including:Interest expenses                            339,399.60                            0.00

           Interest income                                       -171,381.45                     176,466.36

  Add:Other income                                               50,000.00                       57,638.72

  Investment gain(“-”for loss)                              9,140,645.27                  11,066,543.43

Including: investment gains from affiliates                      -412,713.12                   -2,253,932.85

Financial assets measured at amortized cost cease to be
recognized as income

         Net exposure hedging income

         Changing income of fair value                           914,599.37

         Credit impairment loss                                  -196,707.89                    -357,278.55

     Impairment loss of assets

  Assets disposal income

II. Operational profit(“-”for loss)                        21,188,055.34                  19,103,780.79

     Add :Non-operational income

  Less:Non -operational expenses                                                                 27,244.40

III. Total profit(“-”for loss)                               21,188,055.34                  19,076,536.39

     Less:Income tax expenses                                  3,381,310.97                   5,102,958.61

IV. Net profit                                                 17,806,744.37                  13,973,577.78

1.Net continuing operating profit                              17,806,744.37                  13,973,577.78

2.Termination of operating net profit

V. Net after-tax of other comprehensive income                 -5,049,289.77                   2,075,398.37

(I)Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting    -1,003,968.91                   1,687,081.80
period

1.Re-measurement of defined benefit plans of changes in ne
t debt or net assets

2.Other comprehensive income under the equity method inv
estee can not be reclassified into profit or loss.

3. Changes in the fair value of investments in other equity
                                                               -1,003,968.91                   1,687,081.80
instruments

4. Changes in the fair value of the company’s credit risks

  5.Other

(II)Other comprehensive income that will be reclassified int   -4,045,320.86                     388,316.57
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


o profit or loss

1.Other comprehensive income under the equity method inv
estee can be reclassified into profit or loss.

2. Changes in the fair value of investments in other debt
obligations

3. Other comprehensive income arising from the
reclassification of financial assets

4.Allowance for credit impairments in investments in other
debt obligations

5. Reserve for cash flow hedges

6.Translation differences in currency financial statements                 -4,045,320.86                         388,316.57

  7.Other

VI. Total comprehensive income                                             12,757,454.60                      16,048,976.15

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 2021   The first half year of 2020

I.Cash flows from operating activities

Cash received from sales of goods or rending of services                     1,120,318,752.18                771,604,176.04

 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                                                                 7,389,955.19                  1,315,022.98

Other cash received from business operation                                     42,020,491.27                 91,408,927.56
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


    Sub-total of cash inflow                                               1,169,729,198.64             864,328,126.58

Cash paid for purchasing of merchandise and services                        904,947,382.28              799,466,447.26

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                                      131,060,141.64               84,518,321.17

 Taxes paid                                                                  25,418,187.30               31,950,122.40

Other cash paid for business activities                                     160,947,023.67               84,012,710.98

Sub-total of cash outflow from business activities                         1,222,372,734.89             999,947,601.81

Net cash generated from /used in operating activities                        -52,643,536.25            -135,619,475.23

II. Cash flow generated by investing

Cash received from investment retrieving

Cash received as investment gains                                             7,958,287.14                9,408,374.94

Net cash retrieved from disposal of fixed assets, intangible assets, and
                                                                                                                600.00
other long-term assets

Net cash received from disposal of subsidiaries or other operational
units

Other investment-related cash received                                      779,428,611.40            1,812,790,070.06

Sub-total of cash inflow due to investment activities                       787,386,898.54            1,822,199,045.00

Cash paid for construction of fixed assets, intangible assets and other
                                                                            195,798,969.38              119,759,298.85
        long-term assets

Cash paid as investment

Net increase of loan against pledge

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities                                   732,374,977.65            1,654,000,000.00

Sub-total of cash outflow due to investment activities                      928,173,947.03            1,773,759,298.85

Net cash flow generated by investment                                      -140,787,048.49               48,439,746.15

III.Cash flow generated by financing

Cash received as investment

Including: Cash received as investment from minor shareholders

  Cash received as loans                                                    201,089,000.00

Other financing –related cash received
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


Sub-total of cash inflow from financing activities                                     201,089,000.00

Cash to repay debts

Cash paid as dividend, profit, or interests                                              24,141,288.78

Including: Dividend and profit paid by subsidiaries to minor
shareholders

Other cash paid for financing activities                                                  7,820,298.30                  8,981,300.40

Sub-total of cash outflow due to financing activities                                    31,961,587.08                  8,981,300.40

Net cash flow generated by financing                                                   169,127,412.92                  -8,981,300.40

IV. Influence of exchange rate alternation on cash and cash
                                                                                         -1,040,300.91                  1,220,721.03
equivalents

V.Net increase of cash and cash equivalents                                             -25,343,472.73                -94,940,308.45

Add: balance of cash and cash equivalents at the beginning of term                     278,337,236.95                 268,646,588.18

VI ..Balance of cash and cash equivalents at the end of term                           252,993,764.22                 173,706,279.73


6. Cash Flow Statement of the Parent Company

                                                                                                                              In RMB

                                  Items                                    The first half year of 2021   The first half year of 2020

I.Cash flows from operating activities

Cash received from sales of goods or rending of services                                 36,947,544.62                 19,462,991.54

 Tax returned

Other cash received from business operation                                              23,757,836.70                  2,298,590.45

Sub-total of cash inflow                                                                 60,705,381.32                 21,761,581.99

Cash paid for purchasing of merchandise and services                                      5,951,213.89                  3,731,669.95

Cash paid to staffs or paid for staffs                                                   15,731,460.61                 13,526,840.12

Taxes paid                                                                               14,531,396.20                 27,458,170.70

Other cash paid for business activities                                                   3,676,889.38                  1,020,252.05

Sub-total of cash outflow from business activities                                       39,890,960.08                 45,736,932.82

Net cash generated from /used in operating activities                                    20,814,421.24                -23,975,350.83

II. Cash flow generated by investing

Cash received from investment retrieving

Cash received as investment gains                                                         5,448,251.42                  6,311,044.65

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
Shenzhen Textile (Holdings) Co., Ltd.                                                               The Semi-Annual Financial Report 2021


Other investment-related cash received                                                     347,796,939.77                   791,934,487.06

 Sub-total of cash inflow due to investment activities                                     353,245,191.19                   798,245,531.71

Cash paid for construction of fixed assets, intangible assets and other
                                                                                              1,325,797.35                    1,003,466.38
     long-term assets

     Cash paid as investment

Net cash received from subsidiaries and other operational units

Other cash paid for investment activities                                                  384,000,000.00                   780,000,000.00

Sub-total of cash outflow due to investment activities                                     385,325,797.35                   781,003,466.38

Net cash flow generated by investment                                                      -32,080,606.16                    17,242,065.33

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                                                 15,176,281.23

Other cash paid for financing activities                                                      7,820,298.30                    8,981,300.40

 Sub-total of cash outflow due to financing activities                                      22,996,579.53                     8,981,300.40

Net cash flow generated by financing                                                       -22,996,579.53                     -8,981,300.40

IV. Influence of exchange rate alternation on cash and cash
equivalents

V.Net increase of cash and cash equivalents                                                -34,262,764.45                   -15,714,585.90

Add: balance of cash and cash equivalents at the beginning of term                         113,560,327.21                    27,979,338.37

VI ..Balance of cash and cash equivalents at the end of term                                79,297,562.76                    12,264,752.47

7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
                                                                                                                                      In RMB

                                                                The first half year of 2021

                                           Owner’s equity Attributable to the Parent Company

                            Other Equity
                                                               Other                                                         Minor Total
                              instrument
                                                        Less: Compr               Surplu Comm                                shareh    of
     Items        Share                       Capital                   Specia                       Retain
                                                        Shares ehensi                s    on risk                     Subtot olders owners
                  Capit Prefe Susta    reserve                            lized                       ed      Other
                                                          in     ve               reserve provisi                       al     ’     ’
                   al rred inabl Other    s                             reserve                      profit
                                                        stock Incom                  s      on                               equity equity
                          stock    e
                                                                  e
                                  debt
Shenzhen Textile (Holdings) Co., Ltd.                                        The Semi-Annual Financial Report 2021


                    507,7               1,967,            116,60    94,954    86,912         2,766, 1,133, 3,899,
I .Balance at the                                7,525,
                    72,27               514,35            5,932.    ,652.1    ,390.5        234,17 081,07 315,24
end of last year                                 438.20
                     9.00                 8.53                42        4          0           4.39   5.23     9.62

Add: Change of
     accounting
     policy

Correcting of
previous errors

Merger of
entities under
common control

  Other

II. Balance at      507,7               1,967,            116,60    94,954    86,912         2,766, 1,133, 3,899,
                                                 7,525,
the beginning of 72,27                  514,35            5,932.    ,652.1    ,390.5        234,17 081,07 315,24
                                                 438.20
current year         9.00                 8.53                42        4          0           4.39   5.23     9.62

                    -1,25                                                     61,407        56,718 36,819 93,538
III .Changed in                         -5,914, -7,525, -5,049,
                    0,430                                                     ,418.9         ,603.4 ,465.8 ,069.3
the current year                        533.90 438.20 289.77
                      .00                                                          2             5       6       1

(1)Total                                                                    76,603        71,553 36,819 108,37
                                                          -5,049,
comprehensive                                                                 ,074.3         ,784.6 ,465.8 3,250.
                                                          289.77
income                                                                             9             2       6      48

(II)Investment
                    -1,25
or decreasing of                        -5,914, -7,525,                                     360,47           360,47
                    0,430
capital by                              533.90 438.20                                          4.30            4.30
                      .00
owners

1 . Ordinary Sh
ares invested by
 shareholders

2.Holders of o
ther equity instr
uments invested
 capital

3.Amount of
shares paid and
accounted as
owners’ equity

                    -1,25
                                        -5,914, -7,525,                                     360,47           360,47
4.Other            0,430
                                        533.90 438.20                                          4.30            4.30
                      .00

(III)Profit                                                                 -15,19         -15,19          -15,19
Shenzhen Textile (Holdings) Co., Ltd.   The Semi-Annual Financial Report 2021


allotment                                5,655.         5,655.         5,655.
                                             47            47             47

1.Providing of
surplus reserves

 2.Providing of
common          risk
provisions

3.Allotment to                          -15,19         -15,19        -15,19
the owners (or                           5,655.         5,655.         5,655.
shareholders)                                47            47             47

  4.Other

(IV) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or to
capital shares)

2. Capitalizing
of surplus
reserves (or to
capital shares)

3.Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings

5.Other
comprehensive
income
carry-over
retained
earnings

6.Other

(V). Special
Shenzhen Textile (Holdings) Co., Ltd.                                                                          The Semi-Annual Financial Report 2021


reserves

1. Provided this
year

2.Used this
term

(VI)Other

IV. Balance at      506,5                        1,961,              111,55                94,954               148,31              2,822, 1,169, 3,992,
the end of this     21,84                       599,82       0.00 6,642.                    ,652.1              9,809.             952,77 900,54 853,31
term                 9.00                          4.63                    65                        4               42                  7.84   1.09     8.93

Amount in last year
                                                                                                                                                In RMB

                                                                      The first half year of 2020

                                            Owner’s equity Attributable to the Parent Company

                              Other Equity
                                                                     Other
                               instrument                                                                                                   Minor Total of
       Items                                              Less: Compr                     Surplu Comm
                    Share                      Capital                          Specia                         Retain                       shareho owners
                                                          Shares ehensi                      s       on risk                      Subtot
                    Capit Prefe Susta    reserve                                 lized                          ed        Other             lders’      ’
                                                            in        ve                  reserve provisi                           al
                     al rred inabl Other    s                                   reserve                        profit                       equity     equity
                                                          stock Incom                        s           on
                            stock    e
                                                                       e
                                    debt

I .Balance at       509,3                       1,974, 16,139 119,73                      90,596               49,307             2,727, 1,126,8 3,854,6
the end of last     38,42                       922,24 ,003.4 7,783.                      ,923.3               ,764.0             764,14 51,425. 15,570.
year                 9.00                         8.03           0         31                    9                   3              4.36         82           18

Add: Change of
       accounting
       policy

Correcting of
previous errors

Merger of
entities under
common
control

  Other

II.Balance at       509,3                       1,974, 16,139 119,73                      90,596               49,307             2,727, 1,126,8 3,854,6
the beginning       38,42                       922,24 ,003.4 7,783.                      ,923.3               ,764.0             764,14 51,425. 15,570.
of current year      9.00                         8.03           0         31                    9                   3              4.36         82           18

                    -1,50
III .Changed in                                -7,110, -8,613, 2,075,                                          719,73             2,795, -9,710, -6,915,
                    3,240
the current year                                325.20 565.20 398.37                                             4.74             133.11 915.59 782.48
                      .00
Shenzhen Textile (Holdings) Co., Ltd.                              The Semi-Annual Financial Report 2021


(1)Total
                                                          2,075,   719,73        2,795, -9,710, -6,915,
comprehensive
                                                          398.37     4.74        133.11 915.59 782.48
income

(II)
Investment or       -1,50
                                        -7,110, -8,613,
decreasing of       3,240
                                        325.20 565.20
capital by            .00
owners

1.Ordinary Sh
ares invested b
y shareholders

2 . Holders of
other equity ins
truments invest
ed capital

3.Amount of
shares paid and
accounted as
owners’ equity

                    -1,50
                                        -7,110, -8,613,
4.Other            3,240
                                        325.20 565.20
                      .00

(III)Profit
allotment

1.Providing of
surplus reserves

 2.Providing of
common       risk
provisions

3.Allotment to
the owners (or
shareholders)

  4.Other

(IV) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or to
capital shares)
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


2. Capitalizing
of surplus
reserves (or to
capital shares)

3.Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings

5.Other
comprehensive
income
carry-over
retained
earnings

6.Other

(V). Special
reserves

1. Provided this
year

2.Used this
term

(VI)Other

IV. Balance at     507,8                  1,967,            121,81         90,596             50,027         2,730, 1,117,1 3,847,6
                                                   7,525,
the end of this    35,18                 811,92             3,181.          ,923.3            ,498.7         559,27 40,510. 99,787.
                                                   438.20
term                9.00                   2.83                68                 9                7           7.47        23      70


8.Statement of change in owner’s Equity of the Parent Company

Amount in this period


                                                                                                                                In RMB
                                                              The first half year of 2021
       Items        Share Other Equity instrument Capital       Less:     Other       Specializ Surplus Retaine             Total of
                                                                                                                   Other
                    capital Preferr       Other reserves Shares in Compreh               ed    reserves d profit           owners’
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


                                  ed     Sustain              stock    ensive     reserve                               equity
                                 stock    able                         Income
                                          debt

                       507,77                                                                           676,45
I.Balance at the                                   1,583,30 7,525,43 107,632,                94,954,6                  2,962,595,
                       2,279.0                                                                          4,033.8
end of last year                                   7,509.86     8.20    186.85                  52.14                     223.54
                            0                                                                                9

Add: Change of
     accounting
     policy

Correcting        of
previous errors

         Other

II. Balance at the 507,77                                                                               676,45
                                                   1,583,30 7,525,43 107,632,                94,954,6                  2,962,595,
beginning         of 2,279.0                                                                            4,033.8
                                                   7,509.86     8.20    186.85                  52.14                     223.54
current year                0                                                                                9

III .Changed in -1,250,                            -5,914,5 -7,525,4 -5,049,2                           2,611,0       -2,077,726
the current year       430.00                        33.90     38.20     89.77                           88.90                .57

(I)Total
                                                                       -5,049,2                         2,611,0       -2,438,200
comprehensive
                                                                         89.77                           88.90                .87
income

(II) Investment
or decreasing of       -1,250,                     -5,914,5 -7,525,4                                                   360,474.3
capital by             430.00                        33.90     38.20                                                             0
owners

1.Ordinary Sha
res invested by s
hareholders

2.Holders of ot
her equity instru
ments invested c
apital

3.Amount of
shares paid and
accounted as
owners’ equity

                       -1,250,                     -5,914,5 -7,525,4                                                   360,474.3
4.Other
                       430.00                        33.90     38.20                                                             0

(III)Profit
allotment

1.Providing of
Shenzhen Textile (Holdings) Co., Ltd.                         The Semi-Annual Financial Report 2021


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

2.Used this term

(VI)Other

IV. Balance at      506,52              1,577,39   102,582,    94,954,6 679,06           2,960,517,
the end of this     1,849.0             2,975.96    897.08        52.14 5,122.7             496.97
Shenzhen Textile (Holdings) Co., Ltd.                                                                         The Semi-Annual Financial Report 2021


term                              0                                                                                                9

Amount in last year
                                                                                                                                                   In RMB

                                                                             The first half year of 2020

                                            Other Equity
                                            instrument                                Other
                                                                            Less:               Specializ                                       Total of
       Items            Share                                   Capital               Compre                Surplus Retained
                                  Preferr                                  Shares                  ed                                  Other   owners’
                        Capital                Sustai           reserves              hensive               reserves    profit
                                       ed               Other              in stock             reserve                                          equity
                                               nable                                  Income
                                      stock
                                               debt

                        509,33                                  1,589,8
I.Balance at the                                                           16,139,0 110,764,                90,596, 637,234,4                  2,921,664,3
                         8,429.                                 69,499.
end of last year                                                             03.40     037.74                923.39       75.15                     61.24
                            00                                       36

Add: Change of
       accounting
       policy

Correcting         of
previous errors

           Other

II. Balance at 509,33                                           1,589,8
                                                                           16,139,0 110,764,                90,596, 637,234,4                  2,921,664,3
the     beginning 8,429.                                        69,499.
                                                                             03.40     037.74                923.39       75.15                     61.24
of current year             00                                       36

III. Changed in -1,503,                                         -7,110,3 -8,613,5 2,075,3                              13,973,57               16,048,976.
the current year 240.00                                           25.20      65.20      98.37                               7.78                          15

(I)Total
                                                                                      2,075,3                          13,973,57               16,048,976.
comprehensive
                                                                                        98.37                               7.78                          15
income

(II) Investment
or decreasing of -1,503,                                        -7,110,3 -8,613,5
capital by              240.00                                    25.20      65.20
owners

1.Ordinary Sh
ares invested by
 shareholders

2.Holders of o
ther equity instr
uments invested
 capital

3.Amount of
shares paid and
Shenzhen Textile (Holdings) Co., Ltd.                       The Semi-Annual Financial Report 2021


accounted as
owners’ equity

                   -1,503,              -7,110,3 -8,613,5
4.Other
                   240.00                 25.20    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.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings

5.Other
comprehensive
income
carry-over
retained
earnings

6.Other
Shenzhen Textile (Holdings) Co., Ltd.                                          The Semi-Annual Financial Report 2021


(V) Special
reserves

1. Provided this
year

2.Used this
term

(VI)Other

IV. Balance at     507,83                   1,582,7
                                                      7,525,43 112,839,      90,596, 651,208,0           2,937,713,3
the end of this    5,189.                   59,174.
                                                          8.20   436.11      923.39     52.93                   37.39
term                  00                         16

III. Basic Information of the Company
Shenzhen Textile (Group) Co., Ltd. (hereinafter referred to as "Company" or "the Company") is a joint-stock
company registered in Guangdong Province with a registered capital of RMB 506.521849 million and a unified
social credit code of 91440300192173749Y. The Company has publicly issued RMB common shares (A shares)
and domestic listed foreign shares (B shares) to the public at home and abroad, and listed and traded them. The
Company is headquartered address are 6/F,Shenzhen Textile Building, No.3 Huaqiang Road. North, Futian
District, Shenzhen.

     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 (Group) Co., Ltd. ,As of June 30, 2021, the Company has issued a total of
506,521,849.00 shares.
     The Company has established the corporate governance structure of General Meeting of Shareholders, Board
of Directors and Board of Supervisors, and currently has the Board Office, Office, Strategic Development
Department, Operation and Management Department, Finance Department, Audit Department, Human Resources
Department and other departments.
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.

The financial statements have been authorized for issuance of the 2n meeting of the 8th Board of Directors of the
Group on August 26,2021.

I.Scope of consolidated financial statements

As of June 30, 2021, A total of 9 subsidiaries of the Company are included in the scope of consolidation. For
details, please refer to Note IX "Rights and Interests in Other Subjects".
VI.Basis for the preparation of financial statements
(1)Basis for the preparation

The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and its application guidelines, interpretations and other relevant
provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, the
Company also disclosed relevant financial information in accordance with the Rules No.15 for the Information
Disclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on Financial
Shenzhen Textile (Holdings) Co., Ltd.                                          The Semi-Annual Financial Report 2021


Report (revised in 2014) issued by China Securities Regulatory Commission.
     The financial statements are presented on the basis of going concern.
     The accounting of the Company is based on accrual basis. Except for some financial instruments, the
financial statements are based on historical costs. In case of asset impairment, impairment provision shall be made
in accordance with relevant regulations.

(2)Continuation

 There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.

V. Important accounting policies and estimations

Specific accounting policies and accounting estimates tips:


According to its own production and operation characteristics, the Company determines the policies of
depreciation of fixed assets, amortization of intangible assets and revenue recognition. See Note V. 12, Note ,Note
V ,19,III. 12 and V. 26 for specific accounting policies.
1. Statement on complying with corporate accounting standards
This financial statement conforms to the requirements of Accounting Standards for Business Enterprises, and truly
and completely reflects the combination and financial status of the Company on June 30, 2021, as well as the
combination and operating results and cash flow 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

     The operating cycle of the Company is 12 months.
     4. Accounting standard money
The Company and its domestic subsidiaries use RMB as their bookkeeping base currency. The overseas
subsidiaries of the Company determine RMB as their bookkeeping base currency according to the currency in the
main economic environment in which they operate. The currency used by the Company in preparing the financial
statements is RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.

(1)Enterprise merger under same control:

     For business combination under the same control, the assets and liabilities of the combined party acquired by
the merging party during the combination shall be measured according to the book value of the combined party in
the consolidated financial statements of the final controlling party on the combination date, except for the
adjustment due to different accounting policies. The difference between the book value of the combination
consideration and the book value of the net assets obtained in the combination adjusts the capital reserve. If the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
Business combination under the same control shall be achieved step by step through multiple transactions
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


     In individual financial statements, the share of the book value of the net assets of the combined party in the
consolidated financial statements of the ultimate controlling party shall be taken as the initial investment cost of
the investment on the combination day calculated by the shareholding ratio on the combination day; Adjust the
capital reserve for the difference between the initial investment cost and the book value of the investment held
before the combination plus the book value of the consideration paid on the new day of the combination. If the
capital reserve is insufficient to offset, adjust the retained earnings.
      In the consolidated financial statements, the assets and liabilities of the combined party acquired by the
merging party in the combination shall be measured according to the book value in the consolidated financial
statements of the ultimate controlling party on the combination date, except for the adjustment due to different
accounting policies; The difference between the book value of the investment held before the combination plus the
book value of the consideration paid on the new day of the combination and the book value of the net assets
obtained during the combination will be adjusted for capital reserve. If the capital reserve is insufficient to offset,
the retained earnings will be adjusted. For the long-term equity investment held by the merging party before
obtaining the control right of the combined party, the relevant profits and losses, other comprehensive income and
other changes in owner's equity have been recognized from the date of obtaining the original equity and the date
when the merging party and the combined party are under the same final control to the combination date, and the
initial retained earnings or current profits and losses during the comparative report period shall be offset
respectively.
(2) Business combination involving entities not under common control

     For business combination not under the same control, the combination cost refers to the assets paid, liabilities
incurred or assumed, and fair value of the issued equity securities in order to gain control over the acquiree on the
acquisition date. On the acquisition date, the acquired assets, liabilities and contingent liabilities of the acquiree
are recognized at fair value.
     The difference between the combination cost and the fair value share of identifiable net assets acquired in the
combination is recognized as goodwill, and the accumulated impairment provision is deducted by cost for
subsequent measurement; The difference between the combination cost and the fair value share of identifiable net
assets acquired by the acquiree in the combination shall be recorded into the current profits and losses after
review.
       Business combination under the same control shall be achieved step by step through multiple transactions
     In individual financial statements, the sum of the book value of the equity investment held by the acquiree
before the acquisition date and the new investment cost on the acquisition date is taken as the initial investment
cost of the investment. Other comprehensive income recognized by the equity investment held before the
acquisition date due to accounting by the equity method is not treated on the acquisition date, and accounting
treatment is carried out on the same basis as that of the investee's direct disposal of related assets or liabilities; The
owner's equity recognized due to the change of owner's equity of the investee except net profit and loss, other
comprehensive income and profit distribution shall be transferred to the current profit and loss during the disposal
period when the investment is disposed. If the equity investment held before the acquisition date is measured by
fair value, the accumulated changes in fair value originally included in other comprehensive income will be
transferred to the current profits and losses when accounting by cost method.
     In the consolidated financial statements, the consolidated cost is the sum of the consideration paid on the
acquisition date and the fair value of the equity of the acquiree held before the acquisition date on the acquisition
date. The equity of the acquiree held before the acquisition date shall be re-measured according to the fair value of
the equity on the acquisition date, and the difference between the fair value and its book value shall be included in
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


the current income; Equity of the acquiree held before the acquisition date involves other comprehensive income,
and other changes in owner's equity are converted into current income on the acquisition date, except for other
comprehensive income arising from the remeasurement of net liabilities or changes in net assets of the set income
plan by the investee.
     (3) Treatment of transaction costs in business combination
    Intermediary expenses such as auditing, legal services, evaluation and consultation, and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur. Transaction costs of equity securities or debt securities issued as combination consideration are included in
the initial recognition amount of equity securities or debt securities.

6 Compilation method of consolidated financial statements

     (1)The scope of consolidation

     The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee, enjoys variable returns by participating in the related
activities of the investee, and has the ability to use the power over the investee to affect its return amount.
Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,
structured subjects, etc.).
     The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee, enjoys variable returns by participating in the related
activities of the investee, and has the ability to use the power over the investee to affect its return amount.
Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,
structured subjects, etc.).
     (2) Compilation method of consolidated financial statements
     The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the Company according to other relevant information. When preparing the
consolidated financial statements, the accounting policies and accounting period requirements of the Company
and its subsidiaries are consistent, and major transactions and current balances between companies are offset.
During the reporting period, the subsidiaries and businesses increased due to the business combination under the
same control shall be deemed to be included in the consolidation scope of the Company from the date when they
are controlled by the ultimate controller, and their operating results and cash flows from the date when they are
controlled by the ultimate controller shall be included in the consolidated income statement and the consolidated
cash flow statement respectively.
     During the reporting period, the income, expenses and profits of subsidiaries and businesses increased from
the acquisition date to the end of the reporting period due to business combination not under the same control
during the reporting period are included in the consolidated income statement, and their cash flows are included in
the consolidated cash flow statement.
     The part of shareholders' equity of subsidiaries that is not owned by the Company is listed separately as
minority shareholders' equity in the consolidated balance sheet; The share of minority shareholders' equity in the
current net profit and loss of subsidiaries is listed as "minority shareholders' profit and loss" under the net profit
item in the consolidated income statement. If the loss of subsidiary shared by minority shareholders exceeds the
share enjoyed by minority shareholders in the initial owner's equity of such subsidiary, the balance still offsets
minority shareholders' equity.
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


     (3) Acquisition of minority shareholders' equity of subsidiaries
     The capital reserve in the consolidated balance sheet shall be adjusted for the difference between the newly
acquired long-term equity investment cost due to the acquisition of minority shares and the share of net assets
continuously calculated by subsidiaries from the acquisition date or combination date, and the difference between
the disposal price obtained from partial disposal of equity investment in subsidiaries without losing control and
the share of net assets continuously calculated by subsidiaries from the acquisition date or combination date
corresponding to the disposal of long-term equity investment. If the capital reserve is insufficient to offset, the
retained earnings shall be adjusted.
     (4) Treatment of losing control over subsidiaries
     If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the remaining equity shall be re-measured according to its fair value on the date of loss of control; The
sum of the consideration obtained from the disposal of equity and the fair value of remaining equity, minus the
sum of the share of the original subsidiary's book value of net assets calculated continuously from the acquisition
date and goodwill calculated according to the original shareholding ratio, and the difference formed is included in
the investment income of the current period of loss of control.
     Other comprehensive income related to the original subsidiary's equity investment will be transferred to the
current profits and losses when the control right is lost, except for other comprehensive income generated by the
investee's remeasurement of the net liabilities or changes in net assets of the set income plan.

7.Joint venture arrangements classification and Co-operation accounting treatment

      Joint venture arrangement refers to an arrangement under the joint control of two or more participants. The
joint venture arrangement of the Company is divided into joint operation and joint venture.
     (1) Joint operation
     Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets related
to the arrangement and bears the liabilities related to the arrangement.
     The Company recognizes the following items related to the share of interests in joint operation, and carries
out accounting treatment in accordance with the relevant accounting standards for business enterprises:
     A. Recognize assets held separately and assets held jointly according to their shares;
     B. Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertaken according
to their shares;
     C. Recognize the income generated from the sale of its share of joint operating output;
     D. Recognize the income generated by the sale of output from joint operation according to their shares;
     E. Recognize the expenses incurred separately, and recognize the expenses incurred in joint operation
according to their shares.
     (2) Joint venture
     A joint venture refers to a joint venture arrangement in which the Company only has rights to the net assets
of the arrangement.
     The Company shall carry out accounting treatment on the investment of the joint venture in accordance with
the provisions on accounting of long-term equity investment by the equity method.
8.Recognition Standard of Cash & Cash Equivalents

     Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
 Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


 investments held by the Company with short term, strong liquidity, easy conversion into known cash and little risk
 of value change.

 9.Foreign currency transaction

       In case of foreign currency business of the Company, the exchange rate determined by a systematic and
 reasonable method which is similar to the spot exchange rate on the transaction date shall be used to convert it
 into the bookkeeping base currency amount.
       Balance sheet date: foreign currency monetary items shall be converted at the spot exchange rate on the
 balance sheet date. Exchange differences arising from the difference between the spot exchange rate on the
 balance sheet date and the spot exchange rate at the time of initial recognition or the previous balance sheet date
 are included in the current profits and losses; For foreign currency non-monetary items measured at historical cost,
 the spot exchange rate on the transaction date is still adopted; Foreign currency non-monetary items measured at
 fair value are converted at the spot exchange rate on the fair value determination date, and the difference between
 the converted bookkeeping base currency amount and the original bookkeeping base currency amount is included
 in the current profits and losses.

 10.Financial instruments

      Financial instruments refer to contracts that form financial assets of one party and financial liabilities or
 equity instruments of other parties.
      (1) Recognition and derecognition of financial instruments
      When the Company becomes a party to a financial instrument contract, a financial asset or financial liability
 is recognized.
      Financial assets that meet one of the following conditions shall be derecognized:
      ① Termination of the contractual right to receive cash flow from the financial asset;
      ② The financial asset has been transferred and the following conditions for derecognition of financial asset
 transfer are met.
       If all or part of the current obligations of a financial liability have been discharged, the financial liability or
 part of it shall be derecognized. If the Company (debtor) signs an agreement with the creditor to replace the
 existing financial liabilities by assuming new financial liabilities, and the contract terms of the new financial
 liabilities are substantially different from those of the existing financial liabilities, the existing financial liabilities
 shall be derecognized and the new financial liabilities shall be recognized at the same time.
      When trading the financial assets in a conventional way, accounting recognition and derecognition shall be
 carried out according to the trading day.
      (2) Classification and measurement of financial assets
      According to the business model of managing financial assets and the contractual cash flow characteristics of
 financial assets, the Company divides financial assets into the following three categories: financial assets
 measured at amortized cost, financial assets measured at fair value with changes included in other comprehensive
 income, and financial assets measured at fair value with changes included in current profits and losses.
Financial assets measured at amortized cost

     The Company classifies the financial assets that meet the following conditions and are not designated to be
 measured at fair value with changes included in current profits and losses as financial assets measured at
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


amortized cost:
     The Company's business model of managing such financial assets is to collect contract cash flow as the goal;
     According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
     payment of principal and interest based on the unpaid principal amount.
     After initial recognition, such financial assets are measured in amortized cost by the effective interest rate
     method. Gains or losses arising from financial assets measured in amortized cost that are not part of any
     hedging relationship are included in current profits and losses when derecognition, amortization according to
     the effective interest rate method, or impairment recognition.
     Financial assets measured at fair value and changes included in other comprehensive income
     The Company classifies financial assets that meet the following conditions and are not designated to be
measured at fair value with changes included in current profits and losses as financial assets measured at fair value
with changes included in other comprehensive income:
     The company's business model of managing the financial assets aims at both collecting contract cash flow
     and selling the financial assets;
     According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
     payment of principal and interest based on the unpaid principal amount.
     After initial recognition, the fair value of such financial assets is subsequently measured. Interest, impairment
     losses or gains and exchange gains and losses calculated by the effective interest rate method are included in
     the current profits and losses, while other gains or losses are included in other comprehensive income. Upon
     termination of recognition, the accumulated gains or losses previously included in other comprehensive
     income shall be transferred out of other comprehensive income and included in current profits and losses.
     Financial assets measured at fair value with changes included in current profits and losses
     Except for the above financial assets measured at amortized cost and at fair value with changes included in
other comprehensive income, the Company classifies all other financial assets as financial assets measured at fair
value with changes included in current profits and losses. At the time of initial recognition, in order to eliminate or
significantly reduce accounting mismatch, the Company irrevocably designated some financial assets that should
have been measured at amortized cost or at fair value with changes included in other comprehensive income as
financial assets measured at fair value with changes included in current profits and losses.
     After initial recognition, the financial assets are subsequently measured at fair value, and the resulting gains
or losses (including interest and dividend income) are included in the current profits and losses, unless the
financial assets are part of the hedging relationship.
     However, for non-trading equity instrument investments, the Company can irrevocably designate them as
financial assets measured at fair value with changes included in other comprehensive income upon initial
recognition. The designation is made on the basis of a single investment, and the relevant investment conforms to
the definition of equity instruments from the perspective of the issuer.
     After initial recognition, the fair value of such financial assets is subsequently measured. Dividend income
that meets the requirements is included in profit or loss, and other gains or losses and changes in fair value are
included in other comprehensive income. Upon termination of recognition, the accumulated gains or losses
previously included in other comprehensive income shall be transferred out of other comprehensive income and
included in retained income.
    The business model of managing financial asset refers to how the Company manages financial assets to
generate cash flow. The business model determines whether the cash flow of financial assets managed by the
Company comes from contract cash flow, sale of financial assets or both. The Company determines the business
 Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


 model of managing financial assets based on objective facts and specific business objectives of managing
 financial assets decided by key management personnel.
       The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
 contractual cash flow generated by related financial assets on a specific date is only the payment of principal and
 interest based on the unpaid principal amount. Where, the principal refers to the fair value of financial assets at
 initial recognition; Interest includes consideration for the time value of money, credit risk related to the unpaid
 principal amount in a specific period, and other basic borrowing risks, costs and profits. In addition, the Company
 evaluates the contract clauses that may cause changes in the time distribution or amount of cash flow of financial
 assets contracts to determine whether they meet the requirements of the above-mentioned contract cash flow
 characteristics.
      Only when the Company changes its business model for managing financial assets, all affected financial
 assets shall be reclassified on the first day of the first reporting period after the business model changes, otherwise,
 financial assets shall not be reclassified after initial recognition.
      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 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.
      (3) Classification and measurement of financial liabilities
      At initial recognition, the financial liabilities of the Company are classified into: financial liabilities
 measured at fair value with changes included in current profits and losses, and financial liabilities measured at
 amortized cost. For financial liabilities that are not classified as measured at fair value with changes included in
 current profits and losses, relevant transaction costs are included in their initial recognition amount.
      Financial liabilities measured at fair value with changes included in the current profits and losses
      Financial liabilities measured at fair value with changes included in current profits and losses include
 transactional financial liabilities and financial liabilities designated at fair value at initial recognition with changes
 included in current profits and losses. Such financial liabilities are subsequently measured according to fair value,
 and the gains or losses caused by changes in fair value and dividends and interest expenses related to such
 financial liabilities are included in current profits and losses.
 .Financial liabilities measured in amortized cost
      Other financial liabilities are subsequently measured according to the amortized cost by the effective interest
 rate method, and the gains or losses arising from derecognition or amortization are included in the current profits
 and losses.
Distinction between financial liabilities and equity instruments
      Financial liabilities refer to liabilities that meet one of the following conditions:
      ① Contract obligation to deliver cash or other financial assets to other parties.
      ② The contractual obligation to exchange financial assets or financial liabilities with other parties under
 potential unfavorable conditions.
      ③ Non-derivative contracts that need to be settled or can be settled by the enterprise's own equity
 instruments in the future, for which the enterprise will deliver a variable number of its own equity instruments
 according to this contract.
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


     ④ Derivative contracts that need to be settled or can be settled by the enterprise's own equity instruments in
the future, except for derivative contracts that exchange a fixed amount of its own equity instruments for a fixed
amount of cash or other financial assets.
    Equity instruments refer to contracts that can prove ownership of an enterprise's residual equity in assets after
deducting all liabilities.
     If the Company can't unconditionally avoid delivering cash or other financial assets to fulfill a contractual
obligation, the contractual obligation meets the definition of financial liabilities.
      If a financial instrument needs to be settled or can be settled by the Company's own equity instrument, it shall
be considered whether its own equity instrument used to settle the instrument is a substitute for cash or other
financial assets, or it is to enable the holder of such instrument to be entitled to the remaining equity in the assets
after all liabilities are deducted by the issuer. In the former case, the instrument is the financial liability of the
Company; In the latter case, the instrument is the equity instrument of the Company.
     (4) Derivative financial instruments and embedded derivative instruments
     Initially, it is measured at the fair value on the day when the derivative transaction contract is signed, and
then measured at its fair value. Derivative financial instruments with positive fair value are recognized as an asset,
while those with negative fair value are regarded as an liability. Any gains or losses arising from changes in fair
value that do not meet the requirements of hedge accounting are directly included in the current profits and losses.
     For mixed instruments including embedded derivative, if the main contract is financial assets, the relevant
provisions of financial asset classification shall apply to the mixed instruments as a whole. If the main contract is
not a financial asset, and the mixed instrument is not measured at fair value with changes included in the current
profits and losses for accounting treatment, the embedded derivative is not closely related to the main contract in
terms of economic characteristics and risks, and has the same conditions as the embedded derivative, and if the
independent instrument meets the definition of derivative, the embedded derivative is split from the mixed
instrument and treated as a separate derivative financial instrument. If the embedded derivative cannot be
separately measured at the time of acquisition or on the subsequent balance sheet date, the mixed instruments as a
whole are designated as financial assets or financial liabilities measured at fair value with changes included in the
current profits and losses.
     (5) Fair value of financial instruments
     See Note III. 11 for the determination method of the fair value of financial assets and financial liabilities.
     (6) Impairment of financial assets
     Based on the expected credit loss, the Company will carry out impairment accounting treatment on the
following items and recognize the loss reserve:
     ① Financial assets measured at amortized cost;
     ② Receivables and debt investments measured at fair value and included in other comprehensive income;
     ③ Lease receivables;
     ④ Financial guarantee contracts (except those which are measured at fair value with changes included in
current profits and losses, in which the transfer of financial assets does not meet the conditions for derecognition,
or those formed by continuing to involve the transferred financial assets).


Measurement of expected credit loss
      Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


to the original real interest rate and the expected cash flow of all contracts receivable according to the contract,
that is, the present value of all cash shortages.
     The Company takes into account reasonable and reliable information on historical events, current situation
and future economic situation forecasts, and uses the risk of default as the weight to calculate the probability
weighted amount of the present value of the difference between the cash flow receivable from the contract and the
cash flow expected to be received to recognize the expected credit loss.
      The Company separately measures the expected credit losses of financial instruments at different stages. If
the credit risk of financial instruments has not increased significantly since the initial recognition, it is in the first
stage. The Company measures the loss reserve according to the expected credit loss in the next 12 months; If the
credit risk of a financial instrument has increased significantly since its initial recognition but no credit
impairment has occurred, it is in the second stage. The Company measures the loss reserve according to the
expected credit loss of the instrument throughout the duration; If a financial instrument has suffered credit
impairment since its initial recognition, it is in the third stage. The Company measures the loss reserve according
to the expected credit loss of the instrument throughout the duration.
     For financial instruments with low credit risk on the balance sheet date, the Company assumes that their
credit risk has not increased significantly since the initial recognition, and measures the loss reserve according to
the expected credit loss in the next 12 months.
      The expected credit loss in the whole duration refers to the expected credit loss caused by all possible default
events in the whole expected duration of financial instruments. The expected credit loss in the next 12 months
refers to the expected credit loss caused by the financial instrument default event that may occur within 12 months
after the balance sheet date (or within the expected duration if the expected duration of the financial instrument is
less than 12 months), which is a part of the expected credit loss in the whole duration.
     When measuring the expected credit loss, the longest period that the Company needs to consider is the
longest contract period during which the enterprise is subject to credit risk (including the option to renew the
contract).
     For financial instruments in the first and second stages and with low credit risk, the Company calculates
interest income based on the book balance before deducting impairment provisions and the actual interest rate. For
financial instruments in the third stage, the interest income shall be calculated according to their book balance
minus the amortized cost after impairment provision and the actual interest rate.
     For notes receivable and accounts receivable, regardless of whether there is significant financing component,
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.
     When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
     A. Notes receivable
     Notes receivable portfolio 1: bank acceptance bill
     Notes receivable portfolio 2: commercial acceptance bill
     B. Accounts receivable
     Accounts receivable portfolio 1: polarizer sales receivable
     Accounts receivable portfolio 2: textile and garment sales receivable
  Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021


       Accounts receivable portfolio 3: operating funds receivable from self-own property
       Accounts receivable portfolio 4: other receivables
       For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, and
  calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the whole
  duration based on the current situation and forecasts the future economic situation.
       For accounts receivable divided into combinations, the Company refers to the historical credit loss
  experience, combines the current situation with the forecast of future economic situation, compiles a comparison
  table of aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and
  calculates the expected credit loss.
  Other receivables
       The Company classifies other receivables into several combinations according to the credit risk
  characteristics, and calculates the expected credit losses based on the portfolios. The basis for determining the
  portfolio is as follows:
       Other receivables portfolio: aging portfolio
       For other receivables classified as portfolios, the Company calculates the expected credit loss through the
  default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
  Debt investment and other debt investment
       For creditor's rights investment and other creditor's rights investment, the Company calculates the expected
  credit loss according to the nature of the investment, the counterparty and various types of risk exposure and
  based on the expected credit loss rate in the next 12 months or the whole duration.
 Evaluation of significant increase in credit risk
       By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on
  the initial recognition date, the Company determines the relative change of default risk of financial instruments in
  the expected duration, and evaluates whether the credit risk of financial instruments has increased significantly
  since initial recognition.
       When determining whether the credit risk has increased significantly since the initial recognition, the
  company considers to obtain reasonable and reliable information without unnecessary extra costs or efforts,
  including forward-looking information. Information considered by the Company includes:
       The debtor fails to pay the principal and interest according to the expiration date of the contract;
        Serious deterioration of external or internal credit rating (if any) of financial instruments that has occurred
       or is expected;
        Serious deterioration of the debtor's operating results that has occurred or is expected;
        Changes in existing or expected technology, market, economic or legal environment, and significant adverse
       effects on the debtor's repayment ability of the Company.
       According to the nature of financial instruments, the Company assesses whether credit risks have increased
       significantly on the basis of individual financial instruments or financial instrument portfolios. When
       evaluating on the basis of financial instrument portfolio, the Company can classify financial instruments
       based on common credit risk characteristics, such as overdue information and credit risk rating.


Financial assets with credit impairment
       On the balance sheet date, the Company evaluates whether the financial assets measured at amortized cost
  and the creditor's rights investments measured at fair value with changes included in other comprehensive income
  Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


  have suffered credit impairment. When one or more events that adversely affect the expected future cash flow of a
  financial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence of credit
  impairment of financial assets includes the following observable information:
        The issuer or debtor has major financial difficulties;
        The debtor violates the contract, such as default or overdue payment of interest or principal;
       The Company gives concessions that the debtor will not make under any other circumstances due to
       economic or contractual considerations related to the debtor's financial difficulties;
        The debtor is likely to go bankrupt or undergo other financial restructuring;
       The financial difficulties of the issuer or debtor cause the active market of the financial assets to disappear.

Presentation of expected credit loss provision
       In order to reflect the change of credit risk of financial instruments after initial recognition, the Company
  re-measures the expected credit loss on each balance sheet date, and the resulting increase or reversal amount of
  loss reserve shall be included in the current profits and losses as impairment losses or gains. For financial assets
  measured in amortized cost, the loss reserve shall be offset against the book value of the financial assets listed in
  the balance sheet; For creditor's rights investments measured at fair value with changes included in other
  comprehensive income, the Company recognizes its loss reserve in other comprehensive income, which does not
  offset the book value of the financial asset.
  Cancel after verification

       If the Company no longer reasonably expects the contract cash flow of financial assets to be fully or partially
  recovered, it will directly write down the book balance of the financial assets. This write-down constitutes the
  derecognition of related financial assets. It usually happens when the Company determines that the debtor has no
  assets or income sources to generate enough cash flow to repay the amount to be written down. However,
  according to the Company's procedures for recovering the due amount, the written-down financial assets may still
  be affected by the implementation activities.
       If the written-down financial assets are recovered later, they will be included in profits and losses of the
  current recovery period as the reversal of impairment losses.
         (7) Transfer of financial assets
       Transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee)
  other than the issuer of the financial assets.
       If the company has transferred almost all risks and rewards in the ownership of the financial asset to the
  transferee, the recognition of the financial asset shall be terminated; If almost all risks and rewards on the
  ownership of a financial asset are retained, the financial asset shall not be derecognized.
       If the Company has neither transferred nor retained almost all risks and rewards in the ownership of financial
  assets, it shall be dealt with as follows: if the control of the financial assets is abandoned, the financial assets shall
  be derecognized and the resulting assets and liabilities shall be recognized; If the control of the financial assets is
  not abandoned, the relevant financial assets shall be recognized according to the extent of their continued
  involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
       (8) Offset of financial assets and financial liabilities
       When the Company has the legal right to offset the recognized financial assets and financial liabilities, which
  can be enforced at present, and the Company plans to settle by net amount or at the same time realize such
  financial assets and pay off such financial liabilities, the financial assets and financial liabilities are listed in the
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


balance sheet with the amount after offset. In addition, financial assets and financial liabilities are listed separately
in the balance sheet and will not be offset against each other.

11. Notes receivable

    For notes receivable and accounts receivable, regardless of whether there is significant financing component,
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.
    When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
    Notes receivable portfolio 1: bank acceptance bill
    Notes receivable portfolio 2: commercial acceptance bill
    For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, and
calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the whole
duration based on the current situation and forecasts the future economic situation.

12. Accounts receivable

    For notes receivable and accounts receivable, regardless of whether there is significant financing component,
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.
    When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the combinations, and determines the
combination on the following basis:
    Accounts receivable portfolio 1: polarizer sales receivable
    Accounts receivable portfolio 2: textile and garment sales receivable
    Accounts receivable portfolio 3: operating funds receivable from self-own property
    Accounts receivable portfolio 4: other receivables
  For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of future economic situation, compiles a comparison table of
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculates
the expected credit loss.

  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 V, (10) "Financial
Instruments" and Note V, (10) "Impairment of Financial instruments ".
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021



14.Other account receivable

     Determination method and accounting treatment method of expected credit loss of other receivables
     The Company divides the other receivables into several portfolio according to the credit risk characteristics,
and calculates the expected credit losses on the basis of determining the portfolio as follows:
     Other receivables portfolio: age portfolio:
For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,
combines the current situation with the forecast of future economic situation, compiles a comparison table of
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculates
the expected credit loss.
15.Inventory
 1.Investories class

     The Company's inventory includes raw materials, in-process products, low-value consumables, packaging
materials, inventory goods, and issued goods.
       (2) Pricing method of issued inventory
    The Company's inventory is priced at the actual cost when it is acquired. The weighted average method is
adopted when raw materials and inventory goods are issued.
       (3) Determination basis of net realizable value of inventory and accrual method of inventory depreciation
reserve
     The net realizable value of inventory is the estimated selling price of inventory minus the estimated costs to
be incurred upon completion, estimated sales expenses and related taxes. For determination of the net realizable
value of inventories, the solid evidence shall serve as the basis, and the purpose of holding inventories and the
influence of events after the balance sheet date shall be considered.
     On the balance sheet date, if the inventory cost is higher than its net realizable value, inventory depreciation
reserve shall be made. The Company usually accrues the inventory depreciation reserve according to individual
inventory items. On the balance sheet date, if the influencing factors of previous inventory value written down
have disappeared, the inventory depreciation reserve will be returned within the originally accrued amount.
     (4) Inventory system of inventory
     Perpetual inventory system is adopted for the Company's inventory system.
       (5) Amortization method of low-value consumables and packaging materials
    Low-value consumables and packaging materials of the Company are amortized by one-time write-off
method.

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.
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021


17.Contract Costs

    Contract costs include incremental costs incurred for obtaining contracts and contract performance costs.
    The incremental cost incurred for obtaining the contract refers to the cost that the Company will not incur
without obtaining the contract (such as sales commission, etc.). If the cost is expected to be recovered, the
Company will recognize it as the contract acquisition cost as an asset. Other expenses incurred by the Company to
obtain the contract except the incremental cost expected to be recovered are included in the current profits and
losses when incurred.
    If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for enterprises such as inventory and meets the following conditions at the same time, the Company will
recognize it as the contract performance cost as an asset:
    ① Such cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred only
due to this contract;
    ② Such cost increases the resources of the Company for fulfilling its performance obligations in the future;
    ③ The cost is expected to be recovered.
     Assets recognized by contract acquisition cost and assets recognized by contract performance cost (hereinafter
referred to as "Assets Related to 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 current profits and losses.
     When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will accrue impairment provision of the excess and recognize it as the asset
impairment loss:
    ① The remaining consideration expected to be obtained by the Company due to the transfer of goods or
services related to the asset;
    ② The estimated cost to be incurred for transferring the related goods or services.
    The contract performance cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at the time of initial recognition, which shall be listed in "Inventory", and the amortization
period for more than one year or one normal business cycle at the time of initial recognition shall be listed in
"Other Non-current Assets".
    The contract acquisition cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at initial recognition, and shall be listed in "Other Current Assets". The amortization period
for initial recognition shall exceed one year or one normal business cycle, and shall be listed in "Other
Non-current Assets".

18.Held-for-sale assets

     (1) Classification and measurement of non-current assets or disposal groups held for sale
      When the book value of a non-current asset or disposal group is recovered by the Company mainly by selling
it (including the exchange of non-monetary assets with commercial nation) rather than continuously using it, the
non-current asset or disposal group is classified as held for sale.
     The above-mentioned non-current assets do not include investment real estate measured by fair value model,
biological assets measured by net amount of fair value minus selling expenses, assets formed by employee
compensation, financial assets, deferred income tax assets and rights arising from insurance contracts.
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


    The disposal group refers to a group of assets disposed of together by sale or other means in a transaction as
a whole, and liabilities directly related to these assets transferred in the transaction. Under certain circumstances,
the disposal group includes goodwill obtained in business combination, etc.
      Meanwhile, non-current assets or disposal groups that meet the following conditions are classified as
held-for-sale: according to the practice of selling such assets or disposal groups in similar transactions, the
non-current assets or disposal groups can be sold immediately under the current situation; The sale is very likely
to happen, that is, a resolution has been made on a sale plan and a certain purchase commitment has been obtained,
and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to the
sale of investments in subsidiaries, whether or not the Company retains part of the equity investments after the
sale, when the investment in subsidiaries to be sold meets the classification conditions of holding for sale, the
investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements, and all
assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.
     When the non-current assets or disposal groups held for sale are initially measured or re-measured on the
balance sheet date, the difference between the book value and the net amount after deduction of the sales expenses
from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognized
by the disposal group held for sale, the book value of goodwill in the disposal group is offset first, and then the
book value of non-current assets in the disposal group is offset proportionally.
     If the net amount of non-current assets held for sale or disposal group's fair value minus sales expenses
increases on the subsequent balance sheet date, the previously written-down amount will be restored and reversed
within the amount of asset impairment loss recognized after being classified as held-for-sale, and the reversed
amount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.
     Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;
Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of
the investments of associated enterprises or joint ventures classified as held for sale shall be accounted for by the
equity method for those classified as held for sale, while those retained (not classified as held for sale) shall
continue to be accounted for by the equity method; When the Company loses significant influence on the
associated enterprises and joint ventures due to the sale, it shall stop using the equity method.
      If a certain non-current asset or disposal group is classified as held-for-sale, but the classification conditions
of held-for-sale are no longer met, the Company will stop classifying it as held-for-sale and measure it according
to the lower of the following two amounts:
     ① The book value of the asset or disposal group before it is classified as held-for-sale, and the amount
adjusted according to the depreciation, amortization or impairment that should have been recognized without
being classified as held-for-sale;
     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

     For creditor's rights investment and other creditor's rights investment, the Company calculates the expected
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


credit loss according to the nature of the investment, the counterparty and various types of risk exposure and
based on the expected credit loss rate in the next 12 months or the whole duration.

21.Long-term account receivable

    None

22.Long-term equity investments

     Long-term equity investment includes equity investment in subsidiaries, joint ventures and associated
enterprises. If the Company can exert significant influence on the investee, it is an associated enterprise of the
Company.
        (1) Determination of initial investment cost
     Long-term equity investment forming business combination: the long-term equity investment obtained by
business combination under the same control shall be taken as the investment cost according to the book value
share of the owner's equity of the combined party in the consolidated financial statements of the final controlling
party on the combination date; Long-term equity investment obtained by business combination not under the same
control shall be regarded as the investment cost of long-term equity investment according to the combination cost.
     For long-term equity investment obtained by other means: For long-term equity investment obtained by
payment in cash, the actual purchase price is taken as the initial investment cost; For long-term equity investment
obtained by issuing equity securities, the fair value of issuing equity securities is taken as the initial investment
cost.
        (2) Subsequent measurement and profit and loss recognition method
     Investment in subsidiaries shall be accounted by cost method, unless the investment meets the conditions of
holding for sale; Investment in associated enterprises and joint ventures shall be accounted for by equity method.
     For the long-term equity investment calculated by the cost method, except for the cash dividends or profits
that have been declared but not yet issued and that included in the actual payment or consideration, the cash
dividends or profits declared and distributed by the investee are recognized as investment income and included in
the current profits and losses.
      If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee, the investment cost of long-term equity investment shall
not be adjusted; If the initial investment cost is less than the fair value share of the identifiable net assets of the
investee at the time of investment, the book value of the long-term equity investment shall be adjusted, and the
difference shall be included in the profit and loss of the current investment period.
     In case of accounting by equity method, the investment income and other comprehensive income are
recognized respectively according to the share of net profits and losses and other comprehensive income realized
by the investee, and the book value of long-term equity investment is adjusted at the same time; According to the
profit or cash dividend declared and distributed by the investee, the part to be entitled to shall be calculated, and
the book value of long-term equity investment shall be reduced correspondingly; The investee adjusts the book
value of long-term equity investment for other changes in owner's equity except net profits and losses, other
comprehensive income and profit distribution and includes them in capital reserve (other capital reserve). When
recognizing the share of the net profit and loss of the investee, the fair value of identifiable assets of the investee
at the time of investment is taken as the basis, and the net profit of the investee is recognized after adjustment
according to the accounting policies and accounting periods of the Company.
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


     If it can exert significant influence on the investee due to additional investment or implement joint control
but does not constitute control, on the conversion date, the sum of the fair value of the original equity plus the new
investment cost shall be taken as the initial investment cost calculated by the equity method instead. The
difference between the fair value and book value of the original equity on the conversion date, as well as the
accumulated fair value changes originally included in other comprehensive income, are transferred to the current
profits and losses accounted for by the equity method.
      If the joint control or significant influence on the investee is lost due to the disposal of some equity
investments, the remaining equity after disposal shall be accounted for according to Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of Financial Instruments on the date of loss of joint
control or significant influence, and the difference between fair value and book value shall be included in the
current profits and losses. Other comprehensive income recognized by the original equity investment due to the
adoption of the equity method shall be accounted for on the same basis as the direct disposal of related assets or
liabilities by the investee when the equity method is terminated; Changes in other owners' equity related to the
original equity investment are transferred into current profits and losses.
     If the control over the investee is lost due to the disposal of part of equity investment, and the remaining
equity after disposal can jointly control or exert significant influence on the investee, it shall be accounted for
according to the equity method instead, and the remaining equity shall be regarded as being adjusted by the equity
method when it is acquired; If the remaining equity after disposal cannot exercise joint control or exert significant
influence on the investee, it shall be accounted for according to the relevant provisions of Accounting Standards
for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, and the difference
between its fair value and book value on the date of loss of control shall be included in the current profits and
losses.
     If the Company's shareholding ratio decreases due to capital increase of other investors, causing loss of
control, but it can exercise joint control or exert significant influence on the investee, the share of net assets
increased by the investee due to capital increase and share expansion shall be recognized according to the new
shareholding ratio, and the difference between the original book value of long-term equity investment
corresponding to the decreased shareholding ratio shall be included in the current profits and losses; Then,
according to the new shareholding ratio, it is regarded as being adjusted by the equity method when the
investment is obtained.
      For unrealized internal transaction gains and losses between the Company and its associated enterprises and
joint ventures, the portion attributable to the Company shall be calculated according to the shareholding ratio, and
investment gains and losses shall be recognized on the basis of offset. However, if the unrealized internal
transaction losses between the Company and the investee are the impairment losses of the transferred assets, they
will not be offset.
     (3) Basis for determination of joint control and significant influence on the investee
      Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before any decision is made. When judging whether there is common control, firstly, judge whether all
participants or a combination of participants collectively control the arrangement, and secondly, judge whether the
decision-making of activities related to the arrangement must be unanimously agreed by the participants who
collectively control the arrangement. If all participants or a group of participants must act in concert to decide the
relevant activities of an arrangement, it is considered that all participants or a group of participants collectively
control the arrangement; If two or more participants can collectively control an arrangement, it does not constitute
joint control. When judging whether it is joint control, the protective rights entitled to are not considered.
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


     Significant influence means that the investor has the right to participate in the decision-making on the
financial and operating policies of the investee, but cannot control or jointly control the formulation of these
policies with other parties. When determining whether it can exert significant influence on the investee, the
influence of the voting shares of the investee directly or indirectly held by the investor and the current executable
potential voting rights held by the investor and other parties shall be considered, including the influence of the
current convertible warrants, share options and convertible corporate bonds issued by the investee.
      When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the
voting shares of the investee, it is generally considered to have a significant influence on the investee, unless there
is clear evidence that it cannot participate in the production and operation decisions of the investee under such
circumstances, in which case it does not have a significant influence; When the Company owns less than 20%
(excluding) of the voting shares of the investee, it is generally not considered to have a significant influence on the
investee, unless there is clear evidence that it can participate in the production and operation decisions of the
investee under such circumstances, in which case it has a significant influence.
     (4) Equity investment held for sale
     If all or part of the equity investment in an associated enterprise or joint venture is classified as assets held
for sale, please refer to Note III. 13 for relevant accounting treatment.
    For the remaining equity investments that are not classified as assets held for sale, the equity method is
adopted for accounting treatment.
     If the equity investment in an associated enterprise or joint venture that has been classified as held for sale no
longer meets the classification conditions of assets held for sale, the equity method shall be used for retrospective
adjustment from the date that it is classified as assets held for sale.
     (5) Test method for impairment and accrual method for impairment provision
     For investment in subsidiaries, associated enterprises and joint ventures, please refer to Note III. 21 for the
accrual method for impairment provision.

23.Investment real estate

The measurement mode of investment property

The company shall adopt the cost mode to measure the investment property.

Depreciation or Amortization Method

     Investment real estate refers to real estate held for rent or capital appreciation, or both. The Company's
investment real estate includes leased land use rights, land use rights transferred after holding and preparing for
appreciation, and leased buildings.
     The Company's investment real estate is initially measured according to the cost at the time of acquisition,
and depreciation or amortization is accrued on schedule according to the relevant provisions of fixed assets or
intangible assets.
     For investment real estate that is subsequently measured by cost model, please refer to Note III. 21 for the
accrual method of asset impairment.
     The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deduction of its book value and related taxes shall be included in the current profits and losses.

24.Fixed assets
     (1) Recognition conditions of fixed assets
Shenzhen Textile (Holdings) Co., Ltd.                                                      The Semi-Annual Financial Report 2021


The Company's fixed assets refer to tangible assets held for the production of commodities, provision of labor
services, leasing or operation and management, with a service life exceeding one fiscal year. Only when the
economic benefits related to the fixed assets are likely to flow into the enterprise and the cost of the fixed assets
can be measured reliably, can the fixed assets be recognized.
     The fixed assets of the Company are initially measured according to the actual cost at the time of acquisition.
For impairment test methods and impairment provision methods of fixed assets, see this in "Section X Financial
Report V. Important Accounting Policies and Accounting Estimates 31. Long-term impairment of assets".
             At the end of each year, the Company rechecks the service life, estimated net salvage value and
depreciation method of fixed assets.
     If the estimated service life is different from the original estimate, the service life of fixed assets shall be
adjusted; If the estimated net salvage value is different from the original estimate, the estimated net salvage value
shall be adjusted. Major repair cost,The major repair cost incurred by the Company in carrying out regular
inspections of fixed assets, if there is conclusive evidence showing that they meet the conditions for recognition of
fixed assets, shall be included in the cost of fixed assets, while those that do not meet the conditions for
recognition of fixed assets shall be included in the profits and losses of the current period. Fixed assets shall be
depreciated during the interval between regular overhaul.

(2) The method for depreciation


                                The method for            Expected useful life
         Category                                                                Estimated residual value           Depreciation
                                  depreciation                 (Year)

House and Building-           Straight-line method
                                                     35                          4.00                       2.74
Production

House and Building-Non- Straight-line method
                                                     40                          4.00                       2.40
Production

  Decoration of Fixed         Straight-line method
                                                     10                                                     10.00
         assets

Machinery           and       Straight-line method
                                                     10-14                       4.00                       9.6-6.86
equipment

Transportation                Straight-line method
                                                     8                           4.00                       12.00
equipment


Electronic equipment          Straight-line method 8                             4.00                       12.00

Other equipment               Straight-line method 8                             4.00                       12.00



(3)Cognizance evidence and pricing method of financial leasing fixed assets

     Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when
they meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of the leased
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


assets shall be transferred to the Company.② The Company has the option right to purchase the leased assets, and
the concluded purchase price is expected to be far lower than the fair value of the leased assets when exercising
the option right. Therefore, the exercise of this option right by the Company can be determined reasonably on the
starting date of the lease.③ Even though the ownership of the assets is not transferred, the lease term accounts for
most of the service life of the leased assets.④ The present value of the minimum lease payment of the Company
on the lease start date is almost equal to the fair value of the leased assets on the lease start date.⑤ In case of
special properties of the leased assets and no large alteration, only the Company can use them. Fixed assets leased
by finance lease shall be recorded at the lower of the fair value of the leased assets on the lease start date and the
present value of the minimum lease payment. The minimum lease payment is taken as the recorded value of
long-term payables, and the difference is taken as unrecognized financing expenses. Initial direct expenses such as
handling fees, attorney fees, travel expenses, stamp duty, etc., which occur during the lease negotiation and
signing of the lease contract, are included in the value of the leased assets. Unrecognized financing expenses are
amortized by the effective interest rate method in each period of the lease term.Fixed assets leased by financing
shall be depreciated by adopting policies consistent with the self-owned fixed assets. If it can be reasonably
determined that the ownership of the leased asset will be acquired upon the expiration of the lease term,
depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to reasonably
determine that the ownership of the leased asset can be acquired at the expiration of the lease term, depreciation
shall be accrued within the shorter of the lease term and the serviceable life of the leased asset.
25.Construction in progress

    The cost of construction in progress of the Company is determined according to the actual project
expenditure, including all necessary project expenditures incurred during the construction period, borrowing costs
that should be capitalized before the project reaches the intended usable state, and other related expenses.
     Construction in progress is transferred to fixed assets when it reaches the scheduled usable state.
     See Note III. 21 for the method of depreciation of assets in construction in progress.

26.Borrowing costs

     (1) Recognition principle of capitalization of borrowing costs
     If the borrowing costs incurred by the Company can be directly attributed to the purchase, construction or
production of assets that meet the capitalization conditions, they will be capitalized and included in the relevant
asset costs; Other borrowing costs, when incurred, are recognized as expenses according to the amount incurred,
and included in current profits and losses. Borrowing costs shall be capitalized if they meet the following
conditions at the same time:
     ① Asset expenditure has already occurred, including the expenditure incurred in the form of payment in cash,
transfer of non-cash assets or assumption of interest-bearing debts for the purchase, construction or production of
assets that meet the capitalization conditions;
     ② Borrowing costs have already occurred;
     ③ The purchase, construction or production activities necessary to make the assets reach the intended usable
or saleable state have started.
     (2) Capitalization period of borrowing costs
     Capitalization of borrowing costs shall be stopped when assets eligible for capitalization acquired,
constructed or produced by the Company reach the intended usable or saleable state. Borrowing costs incurred
after the assets in line with the capitalization conditions reach the intended usable or saleable state shall be
recognized as expenses according to the amount incurred when they occur, and shall be included in current profits
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


and losses.
     If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase,
construction or production, and the interruption lasts exceeds 3 months, the capitalization of borrowing costs shall
be suspended; Borrowing costs during normal interruption period continue to be capitalized.
     (3) Capitalization rate of borrowing costs and calculation method of capitalization amount
     The interest expenses actually incurred in the current period of special borrowing shall be capitalized after
deducting the interest income from the unused borrowing funds deposited in the bank or the investment income
from temporary investment; The capitalization amount of general borrowings is determined by multiplying the
weighted average of the accumulated asset expenditure over the special loan by the capitalization rate of the
occupied general borrowings. Capitalization rate is calculated and determined according to the weighted average
interest rate of general borrowings.
     During the capitalization period, all the exchange differences of special borrowings in foreign currency are
capitalized; Exchange differences of general borrowings in foreign currency are included in current profits and
losses.

27.Biological Assets

None

28.Oil & Gas assets

None

29. Right to use assets

None

30.Intangible assets

     The intangible assets of the Company include land use rights, proprietary technology and software.
      Intangible assets are initially measured at cost, and their service life is analyzed and judged when they are
acquired. If the service life is limited, the intangible assets shall be amortized within the expected service life by
the amortization method that can reflect the expected realization mode of the economic benefits related to the
assets from the time when they are available for use; If it is impossible to reliably determine the expected
realization mode, they shall be amortized by straight-line method; Intangible asset\s with uncertain service life are
not amortized.
Amortization methods of intangible assets with limited service life are as follows:

           Items              Useful life(year)        Amortization method                  Notes

Land use right                          50                     Straight

Special technology                      15                     Straight

Software                                5                      Straight

     At the end of each year, the Company rechecks the service life and amortization method of intangible assets
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


with limited service life, adjusts the original estimate if it is different from the previous estimate, and handles the
change according to the accounting estimate.
     On the balance sheet date, if it is estimated that an intangible asset can no longer bring future economic
benefits to the enterprise, all the book value of the intangible asset will be transferred to the current profits and
losses.

(2)Accounting Policy of Internal Research and Development Expenditure

     The Company divides the expenditure of internal research and development projects into expenditures in
research stage and expenditures in development stage.
     Expenditures in research stage are included in current profits and losses when they occurs.
      Expenditures in development stage can only be capitalized if they meet the following conditions: it is
technically feasible to complete the intangible assets so that they can be used or sold; There is the intention to
complete the intangible assets and use or sell them; The ways in which intangible assets generate economic
benefits, including those that can prove the existence of market for products produced by the intangible assets or
the existence of market for the intangible assets themselves, and that for the intangible assets that will be used
internally, their usefulness can be proved; There are sufficient technical, financial and other resources to complete
the development of the intangible assets and the ability to use or sell the intangible assets; Expenditures
attributable to the development stage of the intangible assets can be measured reliably. Development expenditures
that do not meet the above conditions are included in current profits and losses.
     The research and development project of the Company will enter the development stage after the above
conditions are met and a project is approved through technical feasibility and economic feasibility study.
     Capitalized expenditures in development stage are listed as development expenditures on the balance sheet,
and are converted into intangible assets from the date when the project reaches the intended purpose.

31.Long-term Assets Impairment

     The asset impairment of long-term equity investment of subsidiaries, associated enterprises and joint
ventures, investment real estate, fixed assets, construction in progress, intangible assets, goodwill, etc. (except
inventory, investment real estate measured according to fair value model, deferred income tax assets and financial
assets) shall be determined according to the following methods:
     On the balance sheet date, judge whether there is any sign of possible impairment of assets. If there is any
sign of impairment, the Company will estimate its recoverable amount and conduct impairment test. The goodwill
formed by business combination, intangible assets with uncertain service life and intangible assets that have not
yet reached the usable state are tested for impairment every year regardless of whether there is any sign of
impairment.
     The recoverable amount is determined according to the higher of the net amount of the fair value of the asset
minus the disposal expenses and the present value of the estimated future cash flow of the asset. The Company
estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable
amount of a single asset, the recoverable amount of the asset group shall be determined based on the asset group
to which the asset belongs. The identification of asset group is based on whether the main cash inflow generated
by asset group is independent of cash inflow of other assets or asset groups.
    When the recoverable amount of an asset or asset group is lower than its book value, the Company will write
down its book value to the recoverable amount, and the written-down amount will be included in the current
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


profits and losses, and the corresponding asset impairment provision will be accrued at the same time.
      As far as the impairment test of goodwill is concerned, the book value of goodwill formed by business
combination is amortized to relevant asset groups according to a reasonable method from the acquisition date; If it
is difficult to amortize to the related asset group, it shall be amortized to the related asset group portfolio. The
related asset group or asset group portfolio is one that can benefit from the synergy effect of business combination,
and is not larger than the reporting segment determined by the Company.
     In the impairment test, if there are signs of impairment in the asset group or asset group portfolio related to
goodwill, firstly, the asset group or asset group portfolio without goodwill shall be tested for impairment, the
recoverable amount shall be calculated, and the corresponding impairment loss shall be recognized. Then
impairment test shall be carried out on the asset group or asset group portfolio containing goodwill, and its book
value shall be compared with the recoverable amount. If the recoverable amount is lower than the book value, the
impairment loss of goodwill shall be recognized.
     Once the asset impairment loss is recognized, it will not be reversed in future accounting periods.


32.Long-term deferred expenses

     The long-term deferred expenses incurred by the Company are priced at actual cost and amortized equally
according to the expected benefit period. For long-term deferred expense items that cannot benefit future
accounting periods, all their amortized values are included in 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 when employees provide services, the Company recognizes the actual wages,
bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance premiums
and maternity insurance premiums paid for employees and housing provident funds as liabilities, and includes
them in current profits and losses or related asset costs. If the liability is not expected to be fully paid within
twelve months after the end of the annual reporting period when employees provide relevant services, and the
financial impact is significant, the liability will be measured at the discounted amount.

2. Accounting Treatment Method of Severance Benefit Plans

     After-service benefit plan includes defined contribution plan and defined benefit plans. Where the set deposit
plan refers to the post-employment benefits plan in which the enterprise no longer undertakes further payment
obligations after paying fixed fees to independent funds; Set benefit plan refers to the post-employment benefits
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


plan except the set deposit plan.
       Set deposit plan
       The set deposit plan includes basic old-age insurance, unemployment insurance and enterprise annuity plan,
etc.
       In addition to the basic old-age insurance, the Company establishes an enterprise annuity plan ("annuity plan")
       according to the relevant policies of the national enterprise annuity system, and employees can voluntarily
       participate in the annuity plan. Moreover, the Company has no other significant social security commitments
       for employees.
     During the accounting period when employees provide services, the amount that should be paid according to
the set deposit plan is recognized as a liability and included in the current profits and losses or related asset costs.
       Set benefit plan
     For set benefit plans, an actuarial valuation is conducted by an independent actuary on the annual balance
sheet date, and the cost of benefit provision is determined by the expected cumulative benefit unit method. The
employee remuneration cost caused by set benefit plans of the Company includes the following components:
     ① Service cost, including current service cost, past service cost and settlement gain or loss. Where:             the
current service cost refers to the increase of the present value of set benefit plan obligations caused by              the
employees providing services in the current period; Past service cost refers to the increase or decrease of             the
present value of set benefit plan obligations related to employee service in previous period caused by                  the
modification of set benefit plans.
       ② The net interest of set benefit plan's net liabilities or net assets, including interest income of planned assets,
interest expense of set benefit plan obligations and interest affected by asset ceiling.
       ③ Changes arising from remeasurement of net liabilities or net assets of set benefit plans.
     Unless other accounting standards require or allow employee benefit costs to be included in asset costs, the
Company will include the above items ① and ② in current profits and losses; Include item ③ in other
comprehensive income and such item will not be transferred back to profit or loss in the subsequent accounting
period. When the original set benefit plan is terminated, all the parts originally included in other comprehensive
income will be carried forward to undistributed profits within the scope of equity.

3. Accounting Treatment Method of Demission Welfare

      If the Company provides dismissal benefits to employees, the employee remuneration liabilities arising from
the dismissal benefits shall be recognized and included in the current profits and losses on the earlier of the
following dates: When the Company cannot unilaterally withdraw the dismissal benefits provided by the
termination of labor relations plan or layoff proposal; When the Company recognizes the costs or expenses related
to the reorganization involving the payment of dismissal benefits.
      If the employee's internal retirement plan is implemented, the economic compensation before the official
retirement date is the dismissal benefit. From the day when the employee stops providing services to the normal
retirement date, the wages of the retired employees and the social insurance premiums paid will be included in the
current profits and losses at one time. Economic compensation after the official retirement date (such as normal
pension) shall be treated as post-employment benefits.

4. Accounting Treatment Method of Other Long-term Employee Benefits

       If other long-term employee benefits provided by the Company to employees meet the conditions for the set
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


deposit plan, they shall be handled in accordance with the above-mentioned relevant provisions on the set deposit
plan. If it meets the set benefit plans, it shall be handled in accordance with the above-mentioned relevant
regulations on set benefit plans, but the part of the related employee remuneration cost, which is "the change
caused by remeasurement of set benefit plan's net liabilities or net assets", shall be included in the current profits
and losses or related asset costs.

35.Lease liabilities

None

36. Estimated Liabilities

      If the obligation related to contingencies meets the following conditions at the same time, the Company will
recognize it as estimated liabilities:
       (1) Such obligation is the current obligation undertaken by the Company;
    (2) The performance of such obligation is likely to lead to the outflow of economic benefits from the
Company;


(3) The amount of such obligation can be measured reliably.
      Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations, and factors such as risks, uncertainties and time value of money related to
contingencies are comprehensively considered. If the time value of money has great influence, the best estimate is
determined by discounting the related future cash outflow. The Company rechecks the book value of the estimated
liabilities on the balance sheet date, and adjusts the book value to reflect the current best estimate.
     If all or part of the expenses required to pay off the recognized estimated liabilities are expected to be
compensated by a third party or other parties, the compensation amount can only be recognized as an asset when it
is basically confirmed that it can be received. The recognized compensation amount shall not exceed the book
value of the recognized liabilities.
37.    Share payment
      (1) Types of share-based payment
     The share-based payment of the Company is divided into equity-settled share-based payment and
cash-settled share-based payment.
       (2) Method for determining fair value of equity instruments
     The fair value of equity instruments such as options granted by the Company with active market is
determined according to the quoted price in the active market. The fair value of granted equity instruments such as
options without active market is determined by option pricing model. The selected option pricing model considers
the following factors: A. The exercise price of options; B. The validity period of the option; C. The current price
of the underlying shares; D. Estimated volatility of share price; E. Expected dividend of shares; F. Risk-free
interest rate within the validity period of the option.
      (3) Basis for determining the best estimation of feasible equity instruments
      On each balance sheet date during the waiting period, the Company makes the best estimate based on the
latest available follow-up information such as changes in the number of employees with feasible rights, and
revises the estimated number of equity instruments with feasible rights. On the vesting date, the final estimated
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021


number of vesting rights and interests instruments shall be consistent with the actual number of vesting rights.
        (4) Accounting treatment related to implementation, modification and termination of share-based payment
plan
      Equity-settled share-based payment is measured at the fair value of equity instruments granted to employees.
If the right is exercised immediately after the grant, the relevant costs or expenses shall be included in the fair
value of equity instruments on the grant date, and the capital reserve shall be increased accordingly. If the rights
can be exercised only after the services within the waiting period are completed or the specified performance
conditions are met, on each balance sheet date within the waiting period, based on the best estimate of the number
of equity instruments available, the services obtained in the current period shall be included in the relevant costs
or expenses and capital reserve according to the fair value on the grant date of equity instruments. After the
vesting date, the recognized related costs or expenses and the total owner's equity will not be adjusted.
     Equity-settled share-based payment shall be measured according to the fair value of liabilities calculated and
determined on the basis of shares or other equity instruments undertaken by the Company. If the right is exercised
immediately after the grant, the fair value of the liabilities assumed by the Company shall be included in the
relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly. For cash-settled
share-based payment that is feasible only after the service within the waiting period is completed or the specified
performance conditions are met, on each balance sheet date within the waiting period, based on the best
estimation of the feasibility and according to the fair value of the liabilities assumed by the Company, the services
obtained in the current period are included in the costs or expenses and corresponding liabilities. On each balance
sheet date and settlement date before the settlement of related liabilities, the fair value of liabilities shall be
re-measured, and the changes shall be included in the current profits and losses.
     When the Company modifies the share-based payment plan, if the fair value of the granted equity
instruments is increased by modification, the increase of the services obtained shall be recognized according to the
increase of the fair value of the equity instruments; If the number of granted equity instruments is increased by
modification, the fair value of the increased equity instruments will be recognized as the increase in services
obtained accordingly. The increase of fair value of equity instruments refers to the difference between the fair
values of equity instruments before and after modification on the modification date. If the total fair value of
share-based payment is reduced by modification or the terms and conditions of the share-based payment plan are
modified in other ways that are unfavorable to employees, the accounting treatment of the obtained services will
continue, as if with no changes unless the Company cancels some or all of the granted equity instruments.
      During the waiting period, if the granted equity instruments are cancelled (except those cancelled due to
non-market conditions that do not meet the feasible rights conditions), the Company will treat the cancellation of
the granted equity instruments as an accelerated exercise, and immediately record the amount to be recognized in
the remaining waiting period into the current profits and losses, and recognize the capital reserve at the same time.
If the employee or other party can choose to meet the non-feasible right condition but fails to meet it during the
waiting period, the Company will treat it as a cancellation for granting equity instruments.
       ① Distinction between financial liabilities and equity instruments
     According to the contract terms of the issued financial instruments and their economic essence, not only in
legal form, but also in combination with the definitions of financial assets, financial liabilities and equity
instruments, the Company classifies the financial instruments or their components as financial assets, financial
liabilities or equity instruments at the time of initial recognition.
       ② Accounting treatment of other financial instruments such as preferred shares and perpetual bonds
       The financial instruments issued by the Company are initially recognized and measured according to the
Shenzhen Textile (Holdings) Co., Ltd.                                          The Semi-Annual Financial Report 2021


financial instrument standards; After that, interest is accrued or dividends are distributed on each balance sheet
date, which shall be handled according to relevant accounting standards for specific enterprises. That is, to
determine the accounting treatment of interest expense or dividend distribution of such instrument based on the
classification of issued financial instruments. For financial instruments classified as equity instruments, their
interest expenses or dividend distribution are regarded as the profit distribution of the Company, and their
repurchase and cancellation are treated as changes in equity; For financial instruments classified as financial
liabilities, the interest expense or dividend distribution shall be treated according to the borrowing costs in
principle, and the profit or loss arising from repurchase or redemption shall be included in the current profits and
losses.
     When the Company issues financial instruments, the transaction expenses such as handling fees and
commissions, which are classified as debt instruments and measured in amortized cost, are included in the initial
measurement amount of the issued instruments; If it is classified as an equity instrument, it will be deducted from
equity.

38. Other financial instruments such as preferred stocks and perpetual bonds

None

39. Revenue

Accounting policies adopted for income recognition and measurement
     (1) General principles
     The Company has fulfilled the performance obligation in the contract, that is, to recognize the revenue when
the customer obtains the control right of related goods or services.
     If the contract contains two or more performance obligations, the Company will amortize the transaction
price to each individual performance obligation according to the relative proportion of the individual selling price
of the goods or services promised by each individual performance obligation on the contract start date, and
measure the income according to the transaction price amortized to each individual performance obligation.
     When one of the following conditions is met, the Company will fulfill its performance obligations within a
certain period of time; Otherwise, it performs the performance obligation at a certain time:
    ① The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time of the its performance.
     ② Customers can control the goods under construction during the performance of the Company.
   ③ The commodities produced during the performance of the Company have irreplaceable uses, and the
Company has the right to collect payment for the performance part accumulated so far during the whole contract
period.
     For the performance obligations performed within a certain period of time, the Company recognizes the
income according to the performance progress within that period. If the performance progress cannot be
reasonably determined, and the cost incurred of the Company is expected to be compensated, the income shall be
recognized according to the amount of the cost incurred until the performance progress can be reasonably
determined.
     For obligations performed at a certain time, the Company shall recognize the income at the time when the
customer obtains control of the relevant goods or services. When judging whether a customer has obtained control
of goods or services, the Company will consider the following signs:
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


       ① The Company has the current right to receive payment for the goods or services, that is, the customer has
the current payment obligation 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 physical goods to the customer, that is, the customer has physically
taken possession of the goods.
       ④ The Company has transferred the main risks and rewards on the ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards on the ownership of the goods.
⑤ The customer has accepted the goods.
       ⑥ Other signs that the customer has obtained control of the goods.
     The Company has transferred goods or services to customers and has the right to receive consideration (and
the right depends on other factors except the passage of time) as contract assets, and the contract assets are
depreciated on the basis of expected credit losses. The right of the Company to collect consideration from
customers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of the
Company to transfer goods or services to customers for received or receivable consideration from customers shall
be regarded as a contractual liability.
  Contract assets and contract liabilities under the same contract are listed in net amount. If the net amount is
debit balance, they are listed in "Contract Assets" or "Other Non-current Assets" according to their liquidity; If the
net amount is the credit balance, it shall be listed in "Contract Liabilities" or "Other Non-current Liabilities"
according to its liquidity.
       (2) Specific method
       The specific method of revenue recognition of the Company is as follows:
       Polarizer/Textile and garment sales contract:
     Domestic sales: When the goods are delivered to the customer and the customer has accepted the goods, the
customer obtains the control of the goods, and the Company recognizes the revenue.
    Export: A. When the customer receives goods in China, the revenue recognition is the same as "Revenue
Recognition for Domestic Sales"; B. When the delivery place of customer is outside the country, the Company
mainly adopts FOB. When the goods are delivered from the warehouse and have been exported for customs
declaration, the Company recognizes the revenue.
       Revenue from property/accommodation services:
       In the process of property/accommodation service provision, the Company recognizes revenue by stages.


The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
None


40.Government subsidy

       Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.
     Government subsidies for monetary assets shall be measured according to the amount received or receivable.
Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtained
reliably, it shall be measured according to the nominal amount RMB 1.
Shenzhen Textile (Holdings) Co., Ltd.                                               The Semi-Annual Financial Report 2021


    Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; In addition, as a government subsidy related to
income.
      Where the government documents do not specify the object of the subsidy, and the subsidy can form
long-term assets, the part of the government subsidies corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets, and the rest shall be regarded as the government subsidies related to
the income; where it is difficult to be distinguished, government subsidies as a whole are treated as income-related
government subsidies.
     Government subsidies related to assets offset the book value of related assets, or are recognized as deferred
income and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income, which are used to compensate related costs
or losses that have occurred, are included in current profits and losses or offset related costs; If used to
compensate related costs or losses in later periods, they will be included in the deferred income, and included in
the current profits and losses or offset related costs during the recognition period of related costs or losses.
Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.
     Government subsidies related to daily activities are included in other income or offset related costs according
to the nature of economic business. Government subsidies irrelevant to routine activities shall be included into the
non-operating receipt and disbursement.
     When the recognized government subsidy needs to be returned, if the book value of related assets is offset
during initial recognition, the book value of assets will be adjusted; If there is a relevant deferred income balance,
the book balance of the relevant deferred income will be offset, and the excess will be included in the current
profits and losses; In other cases, it is directly included in the current profits and losses.
     For the discount interest of preferential policy loans, if the finance allocates the discount interest funds to the
lending bank, the actually received loan amount is taken as the recorded value of the loan, and the borrowing costs
are calculated according to the loan principal and preferential policy interest rate. If the finance directly allocates
the discount interest funds to the Company, the discount interest will offset the borrowing costs.

41.The Deferred Tax Assets / The deferred Tax Liabilities

     Income tax includes current income tax and deferred income tax. Except for adjusted goodwill arising from
business combination or deferred income tax related to transactions or matters directly included in owner's equity,
they are all included in current profits and losses as income tax expenses.
     According to the temporary difference between the book value of assets and liabilities and the tax basis on
the balance sheet date, the Company adopts the balance sheet liability method to confirm deferred income tax.
    All taxable temporary differences are recognized as related deferred income tax liabilities, unless the taxable
temporary differences are generated in the following transactions:
     (1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from transactions
with the following characteristics: the transaction is not a business combination, and the transaction does not
affect accounting profits or taxable income when it occurs;
       (2) For taxable temporary differences related to investments of subsidiaries, joint ventures and associated
enterprises, the time for the temporary differences to be reversed can be controlled and the temporary differences
will probably not be reversed in the foreseeable future.
     For deductible temporary differences, deductible losses and tax deductions that can be carried forward to
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


later years, the Company shall recognize the deferred income tax assets arising therefrom to the extent that it is
likely to obtain the future taxable income used to offset the deductible temporary differences, deductible losses
and tax deductions, unless the deductible temporary differences are generated in the following transactions:
    (1) The transaction is not a business combination, and it does not affect accounting profit or taxable income
when the transaction occurs;
      (2) For deductible temporary differences related to investments of subsidiaries, joint ventures and associated
enterprises, corresponding deferred income tax assets are recognized if the following conditions are met at the
same time: temporary differences are likely to be reversed in the foreseeable future, and taxable income used to
offset the deductible temporary differences is likely to be obtained in the future.
      On the balance sheet date, the Company measures deferred income tax assets and deferred income tax
liabilities according to the applicable tax rate during the expected period of recovering the assets or paying off the
liabilities, and reflects the income tax impact of the expected way of recovering the assets or paying off the
liabilities on the balance sheet date.
     On the balance sheet date, the Company rechecks the book value of deferred income tax assets. If it is
unlikely that sufficient taxable income will be obtained in the future period to offset the benefits of deferred
income tax assets, the book value of deferred income tax assets will be written down. When sufficient taxable
income is likely to be obtained, the written-down amount shall be reversed.

42.Lease

1. Accounting Treatment Method of Operating Lease

         (1) The Company serves as the lessor
(1) During the operating lease, the company recognizes the lease receipts as rental income by straight-line method
or other systematic and reasonable methods in each period of the lease term. The initial direct expenses incurred in
connection with the operating lease are capitalized, allocated on the same basis as the rental income recognition
during the lease term, and included in the current profits and losses by stages. The variable lease payments related
to operating leases that are not included in the lease receipts are included in the current profits and losses when
they actually occur.
    (2)In the financial lease, at the beginning date of the lease term, The Company takes the net lease investment
as the recorded value of the financial lease funds receivable and terminates confirming the financial leasing assets.
The net value of the lease investment is the sum of the present value of the lease income not yet received on the
starting date of the lease period according to the interest rate contained in the lease.The Company calculates and
recognizes the interest income for each period of the lease period at fixed periodic interest rates.
     (2) The Company serves as the lessee
     On the start date of the lease term, the company shall confirm the right to use assets and lease liabilities for
the lease. The right to use assets are initially measured according to cost, including the initial measurement
amount of lease liabilities, paid lease payment amount, initial direct expenses, and the estimated costs for
dismantling and removing the leased assets, restoring the leased assets' site or restoring the leased assets to the
agreed state in the lease terms. Lease liabilities are initially measured according to the present value of unpaid
lease payments on the start date of the lease term, including fixed payments, variable lease payments, exercise
price of purchase options, payments required to exercise lease termination options, and payments expected to be
issued according to the residual value of guarantees provided by the company. When calculating the present value
 Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


 of lease payments, the company shall adopt the lease inclusive interest rate as the discount rate. If it is impossible
 to determine the included interest rate of the lease, the company's incremental borrowing rate shall be used as the
 discount rate.
      The company uses the straight-line method to depreciate the right-to-use assets, and calculates the interest
 expense of the lease liabilities in each period of the lease term according to the fixed periodic interest rate. The
 variable lease payments that are not included in the measurement of lease liabilities are included in the current
 profits and losses or related asset costs when they actually occur.
      For short-term leases and low-value asset leases, the company does not recognize the right-to-use assets and
 lease liabilities, and records the relevant lease payments into the current profits and losses or related asset costs
 according to the straight-line method or other systematic and reasonable methods in each period of the lease term.

 2. Accounting Treatment Method of Finance Lease

 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 accounting policy           Approval process                     Remarks

 In order to adapt to the development of market economy, it
 standardizes the accounting treatment of related economic business
 and improves the quality of accounting information. On December 7,
                                                                       The examined    and
 2018, the Ministry of Finance issued the Notice on Revision and                               http://www.cninfo.com.cn On
                                                                       Adopted at the 2nd
 Issuance   of Accounting Standards for         Business Enterprises                           March 12,2021(Announcement
                                                                       meeting of the 8th
 No.21-Leasing (CS [2018] No.35) (hereinafter referred to as the                               No.:2021-12)
                                                                       Board of Directors
 "New Leasing Standards"). According to the regulations, the
 Company will implement the New Leasing Standards from January 1,
 2021 and adjust the relevant contents of accounting policies.


 (2)Change of main accounting estimations

 □ Applicable √Not applicable

 (3)Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
 Standards Governing Financial Instruments, Revenue or Leases from year 2021

 Applicable
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


Whether need to adjust the balance sheet account at the beginning of the year
□ Yes √ No

(4)Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases from year 2021

□ 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                 13%,6%,5%

City construction tax                      Turnover tax to be paid allowances   7%

Business income tax                        Turnover tax to be paid allowances   25%,20%,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 Textile (Holdings) Co., Ltd                            25%

SAPO Photoelectric Co., Ltd.                                    15%

Shenzhen Lisi Industrial Co., Ltd.                              20%

Shenzhen Shenfang Real Estate Management Co., Ltd.              20%

Shenzhen Huaqiang Hotel                                         20%

Shenzhen Beauty Century Garment Co., Ltd.                       20%

Shenzhen Shenfang Sungang Real estate Management Co.,Ltd.       20%

Shenzhen Textile Imports & Exports Co., Ltd.                    25%

Shengtou (HK)Co., Ltd.                                        16.5%



2. Tax preference

(1) SAPO Photoelectric 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%.
Shenzhen Textile (Holdings) Co., Ltd.                                                   The Semi-Annual Financial Report 2021


3.Other

None

VII. Notes of consolidated financial statement

1.Monetary Capital

                                                                                                                         In RMB
                    Items                                 Year-end balance                     Year-beginning balance

Cash at hand                                                                 4,054.12                                   4,127.10

Bank deposit                                                           182,575,694.25                          271,085,025.10

Other monetary funds                                                    78,864,015.85                             7,998,084.75

                    Total                                              261,443,764.22                          279,087,236.95
Including : The total amount of deposit
                                                                         6,069,241.21                             7,829,822.78
abroad

Other note
Note: At the end of the period, RMB8.450,000 of other monetary funds of the Company is the L/C security
deposit(This part is not regarded as end-of-period cash and cash equivalents when preparing cash flows), except
for which there is no mortgage, pledge or freezing, or money deposited abroad with restricted repatriation.

2. Transactional financial assets

                                                                                                                         In RMB
                            Items                                    Year-end balance             Year-beginning balance

Financial assets measured at their fair values and with the
                                                                              648,882,159.51                   684,617,260.06
variation included in the current profits and losses

  Including:

Structure deposit                                                             160,695,872.76                   200,536,575.34

Monetary fund                                                                 488,186,286.75                   484,080,684.72

  Including

Total                                                                         648,882,159.51                   684,617,260.06

Other note
Note
Shenzhen Textile (Holdings) Co., Ltd.                                                          The Semi-Annual Financial Report 2021


3. Derivative financial assets

        Not applicable

4. Notes receivable

(1) Notes receivable listed by category

                                                                                                                                   In RMB
                   Items                                   Year-end balance                            Year-beginning balance

Commercial acceptance                                                         5,231,381.74                                 16,813,657.28

Total                                                                         5,231,381.74                                 16,813,657.28

                                                                                                                                   In RMB

                                        Amount in year-end                                      Balance Year-beginning

                           Book Balance       Bad debt provision     Book         Book Balance           Bad debt provision       Book
        Category
                         Amount Proportio Amount Proportio           value      Amount Proportio         Amount      Proportio    value

                                     n(%)                  n(%)                              n(%)                      n(%)

Of which:

Accrual of bad debt
                         5,257,67             26,288.3             5,231,381 16,898,14                                           16,813,65
provision by                        100.00%                0.50%                             100.00%     84,490.74      0.50%
                            0.09                     5                   .74        8.02                                              7.28
portfolio

Of which:

                         5,257,67             26,288.3             5,231,381 16,898,14                                           16,813,65
Total                               100.00%                0.50%                             100.00%     84,490.74      0.50%
                            0.09                     5                   .74        8.02                                              7.28

Accrual of bad debt provision by single item:: Not applicable

Portfolio accrual items: 26,288.35
                                                                                                                                   In RMB

                                                                         Amount in year-end
               Name
                                            Book Balance                     Bad debt provision                   Proportion(%)

Commercial acceptance                                5,257,670.09                            26,288.35                              0.50%

Total                                                5,257,670.09                            26,288.35 --

Description of determining the combination basis: it is divided into bank acceptance bills and commercial
acceptance bills according to the subject of bill acceptance.
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
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


(2) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
                                                                                                                              In RMB

                                                       Amount of change in the current period
    Category       Opening balance                           Reversed or                                            Closing balance
                                           Accrual                                Write-off            Other
                                                         collected amount

Commercial
                           84,490.74                              58,202.39                                                26,288.35
acceptance

Total                      84,490.74                              58,202.39                                                26,288.35

Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable

(3)The current accounts receivable write-offs situation

Not applicable

(4)Accounts receivable financing endorsed or discounted by the Company at the end of the period and
not expired yet on the date of balance sheet

                                                                                                                              In RMB

                                              Amount derecognized at the end of the         Amount not yet derecognized at the end of
                   Items
                                                               period                                      the period

Commercial acceptance                                                      172,361,552.75

Total                                                                      172,361,552.75


(5)Accounts receivable financing transferred to accounts receivable by the Company at the end of the
period due to failure of the drawer to perform

Not applicable

(6)The Company had no accounts receivable financing actually written off in the period

None

5. Account receivable

        (1)Classification account receivables.

                                                                                                                            In RMB
                                        Amount in year-end                                     Amount in year-begin
        Category
                           Book balance      Bad debt provision     Book         Book balance        Bad debt provision Book value
Shenzhen Textile (Holdings) Co., Ltd.                                                              The Semi-Annual Financial Report 2021


                                  Proportio              Proportio     value                   Proportio                 Proportio
                       Amount                 Amount                              Amount                     Amount
                                    n(%)                   n(%)                                  n(%)                      n(%)

Accrual of bad debt
                       12,610,5               12,610,5                           20,641,00                   13,552,86               7,088,136.9
provision by single                  2.19%               100.00%          0.00                    3.52%                    65.66%
                          85.09                  85.09                                  2.24                      5.25                        9
item

Including:

Accrual of bad debt
                       564,115,               25,187,5               538,927,9 565,279,5                     25,057,43               540,222,08
provision by                       97.81%                   4.46%                                96.48%                     4.43%
                         491.98                  55.79                   36.19       17.47                        6.56                     0.91
portfolio

Including:

                       576,726,               37,798,1               538,927,9 585,920,5                     38,610,30               547,310,21
Total                             100.00%                   6.55%                              100.00%                      6.59%
                         077.07                  40.88                   36.19       19.71                        1.81                     7.90

Accrual of bad debt provision by single item: 12,610,585.09 yuan
                                                                                                                                         In RMB

                                     Closing balance
Name
                                     Book balance             Bad debt provision Proportion             Reason

Dongguan Yaxing Semiconductor                                                                           Beyond the credit period for a long
                                               2,797,016.81           2,797,016.81        100.00%
Co., Ltd.                                                                                               time, uncertain recovered.

                                                                                                        Beyond the credit period for a long
Dongguan Fair LCD Co., Ltd.                    1,698,130.18           1,698,130.18        100.00%
                                                                                                        time, uncertain recovered.

Guangdong Ruili Baolai                                                                                  Beyond the credit period for a long
                                               1,298,965.36           1,298,965.36        100.00%
Technology Co., Ltd.                                                                                    time, uncertain recovered.

                                                                                                        Beyond the credit period for a long
Other                                          6,816,472.74           6,816,472.74        100.00%
                                                                                                        time, uncertain recovered.

Total                                         12,610,585.09          12,610,585.09 --                   --

Accrual of bad debt provision by portfolio: 25,187,555.79 yuan
                                                                                                                                         In RMB

                                                                                Closing balance
               Name
                                           Book balance                        Bad debt provision                         Proportion

Within 1 year                                      563,427,233.72                         24,992,228.10                                  4.44%

1-2 years                                                688,258.26                            195,327.69                               28.38%

Total                                              564,115,491.98                         25,187,555.79 --

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
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


Disclosure by aging
                                                                                                                                 In RMB

                               Aging                                                        Closing balance

Within 1 year(Including 1 year)                                                                                     563,427,233.72

1-2 years                                                                                                                 688,258.26

2-3 years                                                                                                                 118,021.31

Over 3 years                                                                                                           12,492,563.78

3-4 years                                                                                                                    2,589.73

4-5 years                                                                                                                    3,728.70

  Over 5 years                                                                                                         12,486,245.35

Total                                                                                                                 576,726,077.07


(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

                                                                                   Reversed or
                    Category                   Opening balance                                     Write-            Closing balance
                                                                       Accrual        collected             Other
                                                                                                    off
                                                                                      amount

Accrual of bad debt provision by
                                                      25,057,436.56   130,119.23                                       25,187,555.79
portfolio:

Accrual of bad debt provision by single
                                                      13,552,865.25                   942,280.16                       12,610,585.09
item:

Total                                                 38,610,301.81   130,119.23 942,280.16                            37,798,140.88

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                                     129,104,524.59                                  22.39%                        5,693,509.53

Second                                     70,686,914.82                                  12.26%                        3,117,292.94

Third                                      70,186,875.99                                  12.17%                        3,095,241.23
Shenzhen Textile (Holdings) Co., Ltd.                                                        The Semi-Annual Financial Report 2021


Fourth                                     48,871,933.32                                    8.47%                        2,155,252.26

Fifth                                      41,059,824.45                                    7.12%                        1,810,738.26

            Total                         359,910,073.17                                   62.41%


(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                                                            50,548,060.18                              102,051,314.08

                    Total                                                  50,548,060.18                              102,051,314.08

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
     Some subsidiaries of the Company discount and endorse some bank acceptance bills according to the needs
of their daily fund management, therefore the bank acceptance bills of the subsidiaries are classified as financial
assets measured at fair value with changes included in other comprehensive income.
    There is no single bank acceptance bill with impairment provision of the Company. On June 30, 2021, the
Company considered that there was no significant credit risk in the bank acceptance bills held by it, and there
would be no significant loss due to bank default.

7.Prepayments

(1) List by aging analysis:
                                                                                                                              In RMB

                                             Closing balance                                        Opening balance
            Aging
                                  Amount                    Proportion %                   Amount                Proportion %

Within 1 year                           70,098,948.11                 100.00%               14,934,263.03                    88.35%

1-2 years                                                                                      557,043.06                      3.30%

2-3 years                                                                                      540,748.42                      3.20%
Shenzhen Textile (Holdings) Co., Ltd.                                                 The Semi-Annual Financial Report 2021


Over 3 years                                                                            870,461.88                     5.15%

Total                                   70,098,948.11         --                      16,902,516.39           --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
On June 30, 2021, 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

        (2) The top five ending balances of prepayments collected according to prepaid objects totaled RMB
35,254,897.71, accounting for 50.29 % of the total closing balances of prepayments
Other note:None

8.Other receivable

                                                                                                                      In RMB

                   Items                                Closing balance                        Opening balance

Other accounts receivable                                            108,479,055.45                              5,265,002.71

Total                                                                108,479,055.45                              5,265,002.71


(1)Interest receivable

1) Category of interest receivable

None

2) Significant overdue interest

As of June 30,2021,No overdue interest

3)Bad-debt provision
□ Applicable √ Not applicable


(2)Dividend receivable

Not applicable

3)Bad debt provision

□ Applicable √ Not applicable
Other note
Shenzhen Textile (Holdings) Co., Ltd.                                                            The Semi-Annual Financial Report 2021


(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                                                                110,021,440.70

Deposit                                                                       1,193,736.70                                 2,585,585.87

Unit account                                                                 17,293,811.80                                16,369,395.10

Export rebate                                                                 1,024,147.96                                 1,658,146.29

Reserve fund and staff loans                                                  1,165,706.06                                   379,477.97

Other                                                                             795,538.05                               2,069,761.14

                     Total                                                  131,494,381.27                                23,062,366.37

2)Bad-debt provision
                                                                                                                                   In RMB

                                     Stage 1                   Stage 2                         Stage 3

                                 Expected credit                                     Expected credit losses for
   Bad Debt Reserves                                  Expected credit loss over                                           Total
                             losses over the next                                    the entire duration (credit
                                                      life (no credit impairment)
                                   12 months                                           impairment occurred)

Balance as at January 1,
                                         573,597.01                                               17,223,766.65           17,797,363.66
2021

Balance as at January 1,
                                      ——                      ——                            ——                      ——
2021in current

Provision in the current
                                      5,297,682.27                                                                         5,297,682.27
period

Turn back in the current
                                                                                                         79,720.11               79,720.11
period

Balance as at June
                                      5,871,279.28                                                17,144,046.54           23,015,325.82
30,2021

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)                                                                                         113,415,572.52

1-2 years                                                                                                                    542,382.95

2-3 years                                                                                                                    315,301.22
Shenzhen Textile (Holdings) Co., Ltd.                                                      The Semi-Annual Financial Report 2021


Over 3 years                                                                                                        17,221,124.58

3-4 years                                                                                                              556,334.81

4-5 years                                                                                                            1,806,460.64

  Over 5 years                                                                                                      14,858,329.13

Total                                                                                                              131,494,381.27


3) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
                                                                                                                           In RMB

                                                            Amount of change in the current period
         Category          Opening balance                          Reversed or                                  Closing balance
                                                  Accrual                            Write-off        Other
                                                                collected amount

Accrual of bad debt
provision by single           17,223,766.65                              79,720.11                                  17,144,046.54
item

Accrual of bad debt
                                    573,597.01   5,297,682.27                                                        5,871,279.28
provision by portfolio

Total                         17,797,363.66      5,297,682.27            79,720.11                                  23,015,325.82

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 other Bad debt provision
         Name                      Nature        Year-end balance           Aging
                                                                                        receivables(%)        of year-end balance

                         Customs security
First                                                73,715,545.21 Within 1 year                     56.06%          3,685,777.26
                         deposit

                         Customs security
Second                                               20,370,382.12 Within 1 year                     15.49%          1,018,519.11
                         deposit

                         Customs security
Third                                                13,722,321.42 Within 1 year                     10.44%            686,116.07
                         deposit

Fourth                   Unit account                11,389,044.60 Over 5 year                        8.66%         11,389,044.60

Fifth                    Unit account                 1,800,000.00 4-5 years                          1.37%          1,800,000.00

Total                                --             120,997,293.35             --                    92.02%         18,579,457.04
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


(6) Accounts receivable involved with government subsidies

None

 (7) Other account receivable which terminate the recognition owning to the transfer of the financial assets

None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
        None

9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
(1)Category of Inventory

                                                                                                                              In RMB

                                   Closing book balance                                      Opening book balance

        Items                           Provision for                                             Provision for
                    Book balance         inventory           Book value       Book balance         inventory           Book value
                                        impairment                                                impairment

Raw materials        354,292,224.02      17,187,649.60      337,104,574.42    258,191,196.82       13,788,646.60      244,402,550.22

Goods in transit       4,378,802.67                 0.00       4,378,802.67       524,698.46                  0.00        524,698.46

The low - value
                          20,509.00                 0.00          20,509.00                0.00               0.00              0.00
consumables

Finished product     135,033,441.82      31,107,924.48      103,925,517.34    132,780,479.72       43,914,789.90       88,865,689.82

Semi-finished        172,125,892.31      41,381,539.06      130,744,353.25    164,825,774.18       17,771,131.24      147,054,642.94

Total                665,850,869.82      89,677,113.14      576,173,756.68    556,322,149.18       75,474,567.74      480,847,581.44


(2)Inventory falling price reserves and reserves for impairment of contract performance costs

                                                                                                                              In RMB

                                          Increased in current period           Decreased in current period

        Items      Opening balance                           Reversed or                                             Closing balance
                                          Accrual                              Write-off             Other
                                                           collected amount

Raw materials         13,788,646.60       4,242,718.17                            843,715.17                           17,187,649.60

Finished product      43,914,789.90       7,098,293.08                         19,905,158.50                           31,107,924.48

Semi-finished
                      17,771,131.24      41,287,058.88                         17,676,651.06                           41,381,539.06
product

Total                 75,474,567.74      52,628,070.13                         38,425,524.73                           89,677,113.14
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021




                                  Specific basis for determining the net realizable    Reversal or resale in current period
Items                             value/remaining consideration and the cost to be
                                                      incurred                          Reason for provision for inventor

Raw materials                     Net realizable value is lower than inventory cost            Use of relevant materials

Finished product                  Net realizable value is lower than inventory cost        Sales of related finished products

Semi-finished product             Net realizable value is lower than inventory cost   Sales of related semi-finished products

(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
(4)Description of amortization amount of contract performance cost in the current period
None

10.Contract assets

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Provision for impairment of contract assets in the current period
Not applicable

11.     Assets divided as held-to-sold

Not applicable

12. Non-current assets due within 1 year

Not applicable

13. Other current assets

                                                                                                                                 In RMB

                   Items                                  Year-end balance                           Year-beginning balance

After the deduction of input VAT                                            8,212,405.21                                   77,482,083.47

Total                                                                       8,212,405.21                                   77,482,083.47

Other note: None

14.Creditor's right investment

Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021


15.Other creditor's rights investment

Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable

16. Long-term accounts receivable

(1) List of long-term accounts receivable

Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable

(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial
assets

Not applicable

(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable

Not applicable

17. Long-term equity investment

                                                                                                                In RMB

                                                           Increase /decrease
                                                                                                              Closing
                                        Profits
                                      and losses                     Cash Withdraw                            balance
          Opening Additiona Decrease      on       Other                                          Closing        of
                                                                   bonus or     al of
Investees                             investmen           Changes
          balance     l         in               comprehe                                         balance impairme
                                          ts              in other  profits impairme      Other
                  investmen investmen              nsive
                                       Recogniz            equity announce       nt                              nt
                      t          t
                                       ed under income
                                      the equity                   d to issue provision                       provision
                                        method
I. Joint ventures

Anhui
Huapeng 10,797,02               10,797,02
                                                                                                       0.00
Textile             3.14                3.14
Co.,Ltd.

Shenzhen
Guanhua 127,906,1                              -263,356.                                          127,642,8
Printing        65.17                                48                                              08.69
& Dyeing
Shenzhen Textile (Holdings) Co., Ltd.                                                      The Semi-Annual Financial Report 2021


Co., Ltd.

             138,703,1             10,797,02 -263,356.                                                       127,642,8
Subtotal
                88.31                   3.14         48                                                          08.69

2. Affiliated Company

Shenzhen
Changlian
fa           2,706,262                         136,047.3                                                     2,842,309
Printing           .38                                4                                                             .72
& dyeing
Company

Jordan
Garment                                                                                                            0.00
Factory

Hongkon

g Yehui
             6,519,686                         -285,403.            -4,045,32                                2,188,961
Internatio
                   .54                               98                 0.86                                        .70
nal Co.,

Ltd.

             9,225,948                         -149,356.            -4,045,32                                5,031,271
 Subtotal
                   .92                               64                 0.86                                        .42

             147,929,1             10,797,02 -412,713.              -4,045,32                                132,674,0
Total
                37.23                   3.14         12                 0.86                                     80.11

Other note :None

18. Other equity instruments investment

                                                                                                                           In RMB

                   Items                                   Year-end balance                       Year-beginning balance

Fuao auto parts co., Ltd.(000030)                                         8,790,765.62                           10,129,390.84

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 Xinfang Knitting Co., Ltd.                                         2,227,903.00                             2,227,903.00

Shenzhen South Textile Co., Ltd.                                           13,464,994.09                           13,464,994.09

Total                                                                   189,268,802.32                            190,607,427.54

Itemized disclosure of the current non - trading equity instrument investment
                                                                                                                           In RMB

         Name            Recognized     Accumulating        Accumulating      Amount of other Reasons for being Reasons for other
Shenzhen Textile (Holdings) Co., Ltd.                                                           The Semi-Annual Financial Report 2021


                              dividend        income              losses        comprehensive        measured at fair   comprehensive
                              income                                                  income        value and whose        income
                                                                                 transferred to        changes are      transferred to
                                                                                retained earnings included in other retained earning
                                                                                                     comprehensive
                                                                                                         income

Fuao auto parts co.,                                                                                Long-term
                              414,007.80                           149,832.69
Ltd.(000030)                                                                                      holding

Shenzhen Dailishi                                                                                   Long-term
                              500,000.00      9,756,083.35
Underwear Co., Ltd.                                                                                 holding

Union Development                                                                                   Long-term
                              208,000.00    149,869,200.00
Group Co., Ltd.                                                                                     holding

Shenzhen Xinfang                                                                                    Long-term
                                              1,703,903.00
Knitting Co., Ltd.                                                                                  holding

Shenzhen South                                                                                      Long-term
                                             11,964,994.09
Textile Co., Ltd.                                                                                   holding

Jintian Industry                                                                                    Long-term
                                                                14,831,681.50
(Group)Co., Ltd.                                                                                  holding

Shenzhen Jiafeng
                                                                                                    Long-term
Textile Industry Co.,                                           16,800,000.00
                                                                                                    holding
Ltd.

Other note: None

19.Other non-current financial assets

                                                                                                                                  In RMB

                      Items                                  Year-end balance                          Year-beginning balance

  Financial assets measured at fair value
  with changes included in current profits                                 28,500,000.00                                 30,650,943.40
  and losses
 Total                                                                     28,500,000.00                                 30,650,943.40

Other note: None

20. Investment real estate

 (1) Investment real estate adopted the cost measurement mode

√Applicable □ Not applicable
                                                                                                                                  In RMB

                    Items                    House, Building         Land use right            Construction in            Total
Shenzhen Textile (Holdings) Co., Ltd.                    The Semi-Annual Financial Report 2021


                                                          process

I. Original price

    1. Balance at period-beginning      261,742,940.53                         261,742,940.53

    2.Increase in the current period      2,135,449.63                           2,135,449.63

  (1) Purchase

(2)Inventory\Fixed
assets\ Transferred from construction     2,135,449.63                           2,135,449.63
 in progress

(3)Increased of Enterprise
Combination



3.Decreased amount of the period

     (1)Dispose

     (2)Other out



4. Balance at period-end                263,878,390.16                         263,878,390.16

II.Accumulated amortization

     1.Opening balance                  151,170,468.61                         151,170,468.61

2.Increased amount of the period          3,433,551.69                           3,433,551.69

     (1) Withdrawal                       3,433,551.69                           3,433,551.69



3.Decreased amount of the period

     (1)Dispose

     (2)Other out



  4. Balance at period-end              154,604,020.30                         154,604,020.30

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
Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021




4. Balance at period-end

IV. Book value

1.Book value at period -end                  109,274,369.86                                                           109,274,369.86

  2.Book value at period-beginning           110,572,471.92                                                           110,572,471.92

(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable


(3) Investment real estate without certificate of ownership

                                                                                                                                 In RMB

                    Items                                Book balance                                       Reason

                                                                                       Unable to apply for warrants due to
Houses and Building                                                     9,130,371.32
                                                                                       historical reasons

Other note: None

21. Fixed assets

                                                                                                                                 In RMB

                    Items                              Year-end balance                          Year-beginning balance

Fixed assets                                                         745,921,085.85                                   790,183,905.38

Total                                                                745,921,085.85                                   790,183,905.38


        (1) List of fixed assets
                                                                                                                                 In RMB

                                                   Machinery
            Items            Houses & buildings                      Transportations      Other equipment                Total
                                                   equipment

I. Original price

1.Opening balance                545,896,931.25   1,017,693,432.96        11,379,729.08        42,420,673.14         1,617,390,766.43

2.Increased amount of the
                                                     9,379,425.79           386,129.38            753,719.82           10,519,274.99
period

  (1) Purchase                                       9,379,425.79           386,129.38            753,719.82           10,519,274.99

(2) Transferred from con
struction in progress

(3)Increased of Enterprise
Combination
Shenzhen Textile (Holdings) Co., Ltd.                                               The Semi-Annual Financial Report 2021


3.Decreased amount of
                                                                                         1,393,162.65       1,393,162.65
the period

  (1)Disposal                                                                          1,393,162.65       1,393,162.65



4. Balance at period-end       545,896,931.25    1,027,072,858.75   11,765,858.46       41,781,230.31   1,626,516,878.77

II. Accumulated
                               159,918,391.99     630,517,504.87     3,217,030.86       27,084,284.60     820,737,212.32
depreciation

1.Opening balance              159,918,391.99     630,517,504.87     3,217,030.86       27,084,284.60     820,737,212.32

2.Increased amount of the
 period

     (1) Withdrawal               9,863,865.90     42,870,923.16      500,574.54         1,382,104.27      54,617,467.87



  3.Decrease in the
                                                                                         1,133,192.60       1,133,192.60
reporting period

(1)Disposal                                                                            1,133,192.60       1,133,192.60



4.Closing balance              169,782,257.89     673,388,428.03     3,717,605.40       27,333,196.27     874,221,487.59

III. Impairment provision

1.Opening balance                                   6,373,080.81                            96,567.92       6,469,648.73

2.Increase in the reporting
 period

(1)Withdrawal



3.Decrease in
                                                                                            95,343.40          95,343.40
 the reporting period

(1)Disposal                                                                               95,343.40          95,343.40



4. Closing balance                                  6,373,080.81                             1,224.52       6,374,305.33

IV. Book value

1.Book value of the
                               376,114,673.36     347,311,349.91     8,048,253.06       14,446,809.52     745,921,085.85
 period-end

2.Book value of the
                               385,978,539.26     380,802,847.28     8,162,698.22       15,239,820.62     790,183,905.38
 period-begin
Shenzhen Textile (Holdings) Co., Ltd.                                                          The Semi-Annual Financial Report 2021


(2) Fixed assets temporarily idled

Not applicable

(3) Fixed assets rented by finance leases

Not applicable

(4)     Fixed assets without certificate of title completed

                                                                                                                                   In RMB

                     Items                                     Book Value                                        Reason

                                                                                            Unable to apply for warrants due to
Houses and Building                                                         19,224,328.15
                                                                                            historical reasons

Other note

(5)Liquidation of fixed assets

Not applicable

22. Construction in progress

                                                                                                                                   In RMB

                     Items                                   Year-end balance                         Year-beginning balance



Construction in progress                                                1,567,417,773.55                                  1,301,750,141.12


Total                                                                   1,567,417,773.55                                  1,301,750,141.12


(1) List of construction in progress

                                                                                                                                   In RMB

                                          Year-end balance                                     Year-beginning balance

        Items          Book balance        Provision for       Book value       Book balance         Provision for          Book value
                                            devaluation                                              devaluation

Industrialization
project         of
polaroid for super 1,563,030,177.22                          1,563,030,177.22 1,301,693,689.12                            1,301,693,689.12
large size TV
(Line 7)

Other                        115,596.33                            115,596.33        56,452.00                                  56,452.00
Shenzhen Textile (Holdings) Co., Ltd.                                                               The Semi-Annual Financial Report 2021


Guangzhou Sharp
                        3,600,000.00                               3,600,000.00
RTP

Medium water
recovery &
concentrated                 672,000.00                              672,000.00
water treatment
project

Total                1,567,417,773.55                        1,567,417,773.55 1,301,750,141.12                              1,301,750,141.12


     (2)Changes of significant construction in progress

                                                                                                                                        In RMB

                                                                                                                Includin
                                                                                                    Capitalis     g:
                      Amount                Transferr                                                ation of   Current Capitalis
                                 Increase                          Balance
                      at year                 ed to      Other                Proporti Progress interest        amount     ation of    Source
  Name      Budget                at this                             in
                     beginnin                fixed      decrease              on(%)     of work accumul            of      interest of funds
                                  period                           year-end
                         g                   assets                                                   ated      capitaliz ratio(%)
                                                                                                     balance    ation of
                                                                                                                interest
                                                                                        The
                                                                                        project
                                                                                        has been
                                                                                        initially
Industria
                                                                                        complete
lization
                                                                                        d and
project
                                                                                        entered
of                                                                                                                                    Financial
            1,874,77 1,301,69 261,336,                             1,563,03             the          13,305,0 9,364,43
polaroid                                                                       83.37%                                        4.41% institutio
            0,000.00 3,689.12      488.10                          0,177.22             commiss         04.56       9.27
for super                                                                                                                             n loans
                                                                                        ioning
large
                                                                                        stage and
size TV
                                                                                        is
(Line 7)
                                                                                        expected
                                                                                        to be
                                                                                        fixed in
                                                                                        July.

            1,874,77 1,301,69 261,336,                             1,563,03                          13,305,0 9,364,43
Total                                                                             --          --                             4.41%       --
            0,000.00 3,689.12      488.10                          0,177.22                             04.56       9.27


(3)Impairment provision of construction projects

Not applicable
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


(4)Engineering material

Not applicable

23. Productive biological assets

(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable

24. Oil and gas assets

□ Applicable √ Inapplicable

25. Right to use assets

Not applicable

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                           4,079,953.70     64,163,392.70
period-beginning

2.Increase in the current
period

(1) Purchase                                                                                830,853.16         830,853.16

(2)Internal R & D

(3)Increased of Enterprise
Combination



3.Decreased amount of the
period

(1)Disposal



4. Balance at period-end          48,258,239.00    11,825,200.00                           4,910,806.86     64,994,245.86
Shenzhen Textile (Holdings) Co., Ltd.                                      The Semi-Annual Financial Report 2021


II.Accumulated
amortization

1. Balance at
                                  13,487,191.27      11,825,200.00               2,802,022.52     28,114,413.79
period-beginning

2. Increase in the current
period

  (1) Withdrawal                        445,782.66                                386,890.74         832,673.40



3.Decreased amount of the
period

(1)Disposal



4. Balance at period-end          13,932,973.93      11,825,200.00               3,188,913.26     28,947,087.19

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 period -end       34,325,265.07              0.00                1,721,893.60     36,047,158.67

2.Book value at
                                  34,771,047.73              0.00                1,277,931.18     36,048,978.91
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
Shenzhen Textile (Holdings) Co., Ltd.                                                   The Semi-Annual Financial Report 2021


28. Goodwill

(1) Original book value of goodwill

                                                                                                                     In RMB

   Name of the                                           Increase                   Decrease
 investees or the
                         Opening balance   The merger of                                                     Closing balance
  events formed                                                           disposition
                                            enterprises
    goodwill

SAPO
                            9,614,758.55                                                                        9,614,758.55
Photoelectric


Shenzhen Beauty

Century Garment             2,167,341.21                                                                        2,167,341.21


Co., Ltd.


Shenzhen

Shenzhen       Textile
                               82,246.61                                                                           82,246.61
Import & Export

Co., Ltd.

       Total               11,864,346.37                                                                       11,864,346.37


(2)Impairment of goodwill

                                                                                                                     In RMB

                           Balance in          Increased at this period     .Decreased at this period
     Investee                                                                                                Closing balance
                           year-begin
                                             Provision                    disposition

SAPO
                            9,614,758.55                                                                        9,614,758.55
Photoelectric


Shenzhen Beauty

Century Garment             2,167,341.21                                                                        2,167,341.21


Co., Ltd.


Shenzhen
                               82,246.61                                                                           82,246.61
Shenzhen       Textile

Import & Export
Shenzhen Textile (Holdings) Co., Ltd.                                                             The Semi-Annual Financial Report 2021



Co., Ltd.

        Total              11,864,346.37                                                                                      11,864,346.37

Information about an asset group or asset group portfolio
None
Explain the goodwill impairment test process, key parameters (such as forecast period growth rate at expected
future cash flow, stable period growth rate, profit margin, discount rate, forecast period, etc.) and the confirmation
method of goodwill impairment loss
None
Impact of the goodwill impairment test
None
Other note
None

29. Long term amortize expenses

                                                                                                                                    In RMB

                          Balance             in Increase    in   this Amortized expenses
          Items                                                                                 Other loss           Balance in year-end
                          year-begin               period

Decoration fee                       111,541.85             367,476.91              26,192.06                                   452,826.70
Renovation fee                      1,264,954.74            483,312.49             369,303.19                                 1,378,964.04
Other                               1,500,064.94            129,296.00              55,901.52                                 1,573,459.42

Total                               2,876,561.53            980,085.40             451,396.77                                 3,405,250.16

Other note: None

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
                                           19,040,168.23                 4,753,246.77             18,865,669.84                4,709,761.70
reserves

Unattained internal sales
                                            2,468,270.77                  375,736.99               2,413,307.05                 361,996.06
profits

Restricted stock
                                             686,670.00                   171,667.50                 686,670.00                 171,667.50
repurchase interest

Total                                      22,195,109.00                 5,300,651.26             21,965,646.89                5,243,425.26
Shenzhen Textile (Holdings) Co., Ltd.                                                                  The Semi-Annual Financial Report 2021


(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                     173,144,347.73                 43,286,086.93                174,482,972.97                43,620,743.24
equity instruments

The difference between
the initial recognition
cost and tax base of
                                          62,083,693.36                 15,520,923.34                 62,083,693.36                15,520,923.34
long-term equity
investment of Guanhua
Company

Total                                    235,228,041.09                 58,807,010.27                236,566,666.33                59,141,666.58


(3) Deferred income tax assets or liabilities listed by net amount after off-set

                                                                                                                                              In RMB

                                                                                            Trade-off between the         Opening balance of
                                Trade-off between the        End balance of deferred
                                                                                             deferred income tax          deferred income tax
              Items              deferred income tax           income tax assets or
                                                                                            assets and liabilities at   assets or liabilities after
                                 assets and liabilities       liabilities after off-set
                                                                                                 period-begin                    off-set

Deferred income tax
                                                                           5,300,651.26                                              5,243,425.26
assets

Deferred income tax
                                                                        58,807,010.27                                              59,141,666.58
liabilities

 (4)Details of income tax assets not recognized
                                                                                                                                       In RMB

                        Items                                  Balance in year-end                              Balance in year-begin

Deductible temporary difference                                                    141,755,471.97                                 122,887,462.20

Deductible loss                                                                    671,593,115.73                                 682,013,840.25

Total                                                                              813,348,587.70                                 804,901,302.45


(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

2023                                                      118,806,219.81                      129,226,944.33
 Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021


  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                                              77,636,524.67                    77,636,524.67

  Total                                           671,593,115.73                  682,013,840.25                     --

 Other note: None

 31 .Other non-current assets

                                                                                                                                In RMB

                                               Balance in year-end                              Balance in year-begin


               Items               Book balance     Provision for    Book value        Book balance      Provision        Book value
                                                     devaluation                                            for
                                                                                                        devaluation

Certificate of deposit for more
                                    70,000,000.00                    70,000,000.00      70,064,383.56                     70,064,383.56
than 1 year

Other                               25,760,086.27                    25,760,086.27      25,760,086.27                     25,760,086.27

Advance payment for equipment
                                                                                        47,483,219.83                     47,483,219.83
fund

Total                               95,760,086.27                    95,760,086.27     143,307,689.66                 143,307,689.66

 Other note: None

 32. Short-term borrowings

    (1)Categories of short-term loans

 Not applicable
          (2) Situation of Overdue Outstanding Short-Term Borrowing

 Not applicable

 33. Transactional financial liabilities

 Not applicable

 34. Derivative financial liability

 Not applicable
Shenzhen Textile (Holdings) Co., Ltd.                                               The Semi-Annual Financial Report 2021


35.Notes payable

                                                                                                                     In RMB

                   Type                          Balance in year-end                       Balance in year-begin

Bank acceptance Bill                                              3,982,302.62

Total                                                             3,982,302.62

The total note payable not due at the end of the period is 0.00 yuan.

36. Accounts payable

 (1) List of accounts payable

                                                                                                                     In RMB
                  Items                          Balance in year-end                       Balance in year-begin

Within 1 year                                                   277,064,977.26                             325,354,275.46

1-2 years                                                              104,553.98                            1,912,000.86

2-3 years                                                         1,916,676.43                                     96,543.25

3-4 years                                                              483,791.37                            1,093,369.87

4-5 years                                                                    0.00                                  37,402.40

Over 5 years                                                           412,993.57                              975,010.06

Total                                                           279,982,992.61                             329,468,601.90


(2) Significant advance from customers aging over one year

No Significant accounts payable that aged over one year

37.Advance account

(1) List of Advance account

                                                                                                                     In RMB
                  Items                          Balance in year-end                       Balance in year-begin

Within 1 year                                                     1,059,659.30                                 666,457.75

1-2 years                                                         2,236,912.00                               2,236,912.00

2-3 years

Over 3 years                                                           639,024.58                              639,024.58

Total                                                             3,935,595.88                               3,542,394.33
Shenzhen Textile (Holdings) Co., Ltd.                                                          The Semi-Annual Financial Report 2021


(2) Significant advance from customers aging over one year

None

38.Contract liabilities

                                                                                                                               In RMB
                    Items                                Balance in year-end                           Balance in year-begin

Goods                                                                             21,271.21                                279,631.27

Total                                                                             21,271.21                                279,631.27


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
                                        55,642,549.53           115,925,105.68                125,681,232.17            45,886,423.04
benefits

II. Post-employment
                                                                   7,352,379.85                 7,352,379.85
benefits

Total                                   55,642,549.53           123,277,485.53                133,033,612.02            45,886,423.04


(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,
                                        53,293,551.94           104,837,856.79                114,763,456.46            43,367,952.27
allowances and subsidies

2.Employee welfare                         41,093.20               3,508,437.94                 3,549,531.14

3. Social insurance
                                                                   1,291,947.29                 1,291,947.29
premiums

Including:Medical
                                                                   1,068,467.75                 1,068,467.75
insurance

Work injury insurance                                                 99,849.64                    99,849.64

Maternity insurance                                                  123,629.90                   123,629.90

4. Public reserves for
                                                                   3,403,584.93                 3,403,584.93
housing

5.Union funds and staff
                                         2,307,904.39              2,883,278.73                 2,672,712.35             2,518,470.77
education fee
Shenzhen Textile (Holdings) Co., Ltd.                                                          The Semi-Annual Financial Report 2021


Total                                   55,642,549.53           115,925,105.68                125,681,232.17            45,886,423.04


(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
                                                                   6,138,507.41                 6,138,507.41
insurance premiums

2.Unemployment
                                                                     134,866.25                   134,866.25
insurance

3. Annuity payment                                                 1,079,006.19                 1,079,006.19

            Total                                                  7,352,379.85                 7,352,379.85

Other note:None

40.Tax Payable

                                                                                                                                 In RMB

                    Items                                Balance in year-end                           Balance in year-begin

VAT                                                                                    0.00                                286,928.75

Enterprise Income tax                                                       3,097,418.69                                11,219,726.43

Individual Income tax                                                          994,540.35                                  469,169.71

City Construction tax                                                             36,029.34                                    48,751.30

House property tax                                                          2,990,777.86                                   102,146.02

Land use tax                                                                      93,073.00                                     2,043.30

Education surcharge                                                               24,299.42                                    33,386.49

Stamp tax                                                                         19,446.70                                    36,370.02

Total                                                                          186,280.84

Total                                                                       7,441,866.20                                12,198,522.02

Other note
None

41.Other payable

                                                                                                                                 In RMB

                    Items                                Balance in year-end                           Balance in year-begin

Other payable                                                            136,833,527.76                                156,118,440.42

Total                                                                    136,833,527.76                                156,118,440.42
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


(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                                       40,477,970.75                           32,713,413.76

Unit account                                                     52,408,759.57                           48,394,939.72

Deposit                                                          35,255,520.72                           36,130,306.12

 Restrictive stock repurchase obligation                                  0.00                            7,844,373.00

             Other                                                8,691,276.72                           31,035,407.82

Total                                                           136,833,527.76                          156,118,440.42


(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

45. Long-term borrowing

(1) List of Long-term borrowing
                                                                                                                In RMB
Shenzhen Textile (Holdings) Co., Ltd.                                           The Semi-Annual Financial Report 2021


                  Items                        Balance in year-end                     Balance in year-begin

Mortgage-guaranteed loan                                      544,588,606.07                           343,100,174.35

Total                                                         544,588,606.07                           343,100,174.35

Description of the long-term loan classification:None
Other note,

46.Bond payable

(1)Bond payable

Not applicable

(2)Changes of bonds payable(Not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability

Not applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable

(4)Other financial instruments that are classified as financial liabilities

Not applicable
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


47. Lease liability

Not applicable

48. Long-term payable

Not applicable

49. Long term payroll payable

(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

          Items          Beginning of term     Increased this term   Decreased this term       End of term                Reason

Government Subsidy           110,740,322.21           4,888,300.00           8,394,811.46       107,233,810.75

          Total              110,740,322.21           4,888,300.00           8,394,811.46       107,233,810.75              --

Details of government subsidies:
                                                                                                                                   In RMB

                                                 Amount       Other income    Amount of                                   Asset-related
                                 New subsidy
                  Beginning of                 transferred to recorded in cost deducted        Other                               or
    Items                         in current                                                             End of term
                     term                      non-operatio    the current   in the current   changes                     income-relate
                                   period
                                                nal income       period         period                                             d

Grant funds
for TFT-LCD
                                                                                                                          Related to
polarizer         1,733,333.35                                  649,999.98                               1,083,333.37
                                                                                                                          assets
industry
project

Grant funds
                                                                                                                          Related to
for TFT-LCD 1,000,000.00                                        250,000.02                                   749,999.98
                                                                                                                          assets
polarizer
Shenzhen Textile (Holdings) Co., Ltd.                The Semi-Annual Financial Report 2021


narrow line
(line 5)
project

Subsidy fund
of Shenzhen
polarizing
                                                                               Related to
materials and 2,125,000.00              250,000.02              1,874,999.98
                                                                               assets
technical
engineering
laboratory

Import
equipment
                                                                               Related to
and technical     46,688.06              17,508.00                 29,180.06
                                                                               assets
subsidy (Line
4)

Import
equipment
                                                                               Related to
and technical    280,148.33              70,037.10                210,111.23
                                                                               assets
subsidy (Line
5)

Grant from
municipal
                                                                               Related to
R&D center      1,275,000.00            150,000.00              1,125,000.00
                                                                               assets
(technical
center)

Matching
funds of
Shenzhen
polarizing                                                                     Related to
                 212,500.00              25,000.02                187,499.98
materials and                                                                  assets
technical
engineering
laboratory

Matching
funds for
strategic
emerging
                                                                               Related to
industry          99,999.98              25,000.02                 74,999.96
                                                                               assets
projects of
the National
Development
and Reform
Shenzhen Textile (Holdings) Co., Ltd.                  The Semi-Annual Financial Report 2021


Commission

2012
Shenzhen
encouraged
the
                                                                                 Related to
introduction      28,776.21                 7,194.06                 21,582.15
                                                                                 assets
of advanced
technology
import
subsidy funds

Grant for
equipment
                11,250,000.0                                      10,500,000.0 Related to
purchase for                             750,000.00
                           0                                                 0 assets
Line 6
project

Payment for
production
                22,500,000.0                                      21,000,000.0 Related to
plant and                               1,499,999.98
                           0                                                 2 assets
equipment of
Line 6

Innovation
and venture
funds for
TFT-LCD                                                                          Related to
                 375,000.00               25,000.02                 349,999.98
polarizer                                                                        assets
phase II
project (Line
6)

Fund for key
technology
R&D and
technical
research                                                                         Related to
                3,125,000.00             250,000.02               2,874,999.98
project of                                                                       assets
optical
compensation
film for
polarizer

Funds for
pilot projects 15,000,000.0                                       13,999,999.9 Related to
                                        1,000,000.02
of regional                0                                                 8 assets
agglomeratio
Shenzhen Textile (Holdings) Co., Ltd.                The Semi-Annual Financial Report 2021


n
development
of strategic
emerging
industries

Special fund
for strategic
emerging
industries and
future
development
in
Guangdong
Province, the                                                                  Related to
                  3,750,000.00          250,000.02              3,499,999.98
third batch of                                                                 assets
supporting
programs in
2016 -
supporting
programs for
national/prov
incial
projects

Polarization
Industrializati
on Project for
Super
                  30,000,000.0                                  30,000,000.0 Related to
Large-sized
                            0                                              0 assets
TVs (Line 7)
Central
Budget
Investment

Research &
development
subsidy for
key
technologies                                                                   Related to
                  2,000,000.00                                  2,000,000.00
of ultra-thin                                                                  assets
IPS polarizer
for smart
phone
terminals

Finance           6,000,000.00                                  6,000,000.00 Related to
Shenzhen Textile (Holdings) Co., Ltd.                     The Semi-Annual Financial Report 2021


committee of                                                                        assets
Shenzhen
municipality
(R&D of key
technology of
high-perform
ance
polarizer for
large size
display panel
of
2018N007)

Special fund
subsidies
agreement for
improving                                                                           Related to
                 1,084,575.43                247,465.76                837,109.67
the quality of                                                                      assets
atmospheric
environment
in Shenzhen

Subsidy for
special
technical
transformatio
n investment                                                                        Related to
                  178,916.67                   9,499.98                169,416.69
projects for                                                                        income
the doubling
of technical
transformatio
n in 2020

Old elevator
renovation                                                                          Related to
                  862,497.23                  55,877.86                806,619.37
fund                                                                                assets
subsidies

Technical
renovation
equipment                                                                           Related to
                                130,000.00    32,500.00                 97,500.00
subsidy for                                                                         assets
dyeing
project

Textile                                                                             Related to
                  285,714.25                  71,428.58                214,285.67
special funds                                                                       assets
Shenzhen Textile (Holdings) Co., Ltd.                                     The Semi-Annual Financial Report 2021


Energy
saving                                                                                              Related to
                  27,172.70                                                             27,172.70
transformatio                                                                                       assets
n grant funds

Subsidies for
operation in
lieu of                                                                                             Related to
                                 15,500.00         15,500.00
training in                                                                                         income
Luohu
District

Income-relate
                                                                                                    Related to
d government                   2,242,800.00      2,242,800.00
                                                                                                    income
subsidies

Grant FOR
the key
technology
R&D project
of low color
partial                                                                                             Related to
                               2,500,000.00                                          2,500,000.00
circular                                                                                            assets
polarizer for
AMOLED
with fixed
curvature of
2020N028

State subsidy
for TFT-LCD
polarizer                                                                                           Related to
                7,500,000.00                      500,000.00                         7,000,000.00
phase II                                                                                            assets
project (Line
6)

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 RMB214,285.67 .

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
Shenzhen Textile (Holdings) Co., Ltd.                                         The Semi-Annual Financial Report 2021


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
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
1,083,333.37.


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 RMB749,999.98.

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 RMB239,291.29.

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 RMB74,999.96 .

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 RMB187,499.98 .

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
Shenzhen Textile (Holdings) Co., Ltd.                                          The Semi-Annual Financial Report 2021


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 RMB1,874,999.98 .

    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 RMB1,125,000.00.

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 RMB21,582.15.

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 RMB10,500,000.00.

     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 RMB349,999.98.

     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
RMB2,874,999.98.

     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
RMB7,000,000.00.

    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
Shenzhen Textile (Holdings) Co., Ltd.                                         The Semi-Annual Financial Report 2021


December 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCD
polarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industries
and the future development of industrial matching funds, TFT-LCD polarizer Phase II project (Line 6) hit the
expected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in
depreciation of relevant assets, RMB1,250,000.04 was included into other incomes in the current period and the
ending outstanding balance was RMB17,499,999.96.

     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 21,000,000.02.

     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 RMB27,172.70.

     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 Other income was RMB130,500.00 at the current period, the ending
balance without amortization was RMB856,336.67. 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 RMB806,619.37.

     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.
Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021


      20. According to Measures for Management of Science and Technology Research & Development Funds in
Shenzhen, Measures for Management of Projects in Shenzhen Municipal Science and Technology Program and
other documents concerned, SAPO Photoelectric Co., Ltd. and Shenzhen Science and Technology Innovation
Committee entered into a Contract of Projects in Shenzhen Municipal Science and Technology Program through
consultation to complete development of key techniques for high-performance polarizers for 2018N007 jumbo
display panels in the program delivered in Shen Fa Gai [2018] No.324 document. The Company was granted with
a financial subsidy of RMB 1,000,000.00 this year. The Company amortized and transferred the deferred income
into the current profit and loss by period of depreciation after relevant assets hit the expected available state.

     21. According to the Measures of Shenzhen Municipality on Subsidy for Improving Atmospheric
Environmental Quality (2018-2020) (SRHG [2018] No.2), in December 2019, the Company received a subsidy of
1,033,507.00 yuan from Shenzhen Municipal Human Settlements Committee. The Company completed the
transformation of the relevant assets into fixed assets in December 2019. The Company will allocate the relevant
assets according to their depreciation years in January 2020, The Company was granted with a financial subsidy
of RMB 1,000,000.00 this year. The current period is charged to the current profit and loss of 221,465.76 yuan,
the ending balance without amortization was RMB8369,109.67.

    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 9,499.98 yuan was included in
the current period, and the undistributed balance at the end of the period was 169,416.69 yuan.

52. . Other non-current liabilities

Not applicable

53.Stock capital

                                                                                                                         In RMB

                                                                 Changed(+,-)
                   Year-beginning                                  Capitalization                                  Balance in
                                    Issuance of
                      balance                     Bonus shares      of public         Other          Subtotal       year-end
                                    new share
                                                                     reserve

Total of capital
                   507,772,279.00                                                   -1,250,430.00   -1,250,430.00 506,521,849.00
shares

Other note:
   On February 7, 2021, the Company repurchased and canceled 13,950 restricted shares held by the employees
who resigned and retired, and the share capital decreased by RMB 13,950.00.
    On April 13, 2021, the Company repurchased and canceled the restricted stocks that did not meet the
conditions for lifting the restriction on sale in the last phase and the restricted stocks held by the incentive objects
who left the company, totaling 1,236,480 shares, with the share capital reduced by RMB 1,236,480.00.
 Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


 54. Other equity instruments

 (1) Basic information on the outstanding other financial instruments, including preferred shares, perpetual
 bonds, etc. at the end of the reporting period

 Not applicable

 (2)Movement of the outstanding other financial instruments, including preferred shares, perpetual bonds,
 etc. at the end of the reporting period

 Not applicable

 55. Capital reserves

                                                                                                                                 In RMB


           Items            Year-beginning balance      Increase in the current      Decrease in the current       Year-end balance

                                                                period                       period
  Share premium                    1,967,514,358.53                                             5,914,533.90          1,961,599,824.63

  Total                            1,967,514,358.53                                             5,914,533.90          1,961,599,824.63

 Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
 The change of capital stock premium in the current period is from the repurchase and cancellation of some
 restricted stocks granted by the Company's restricted stock incentive plan in 2017.

 56.Treasury stock

                                                                                                                                 In RMB

                                                                                     Decrease in the current
           Items            Year-beginning balance      Increase in the current                                    Year-end balance
                                                                                             period

  Treasury stock                         7,525,438.20                                           7,525,438.20                       0.00

  Total                                  7,525,438.20                                           7,525,438.20

 Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
 The change of capital stock premium in the current period is from the repurchase and cancellation of some
 restricted stocks granted by the Company's restricted stock incentive plan in 2017.

57. Other comprehensive income
                                                                                                                                In RMB

                                                                          Amount of current period

                                    Year-beginn Amount           Less:       Less:Prior                            After-tax Year-end
                                                                                             Less:    After-tax
               Items                                             Amount           period                            attribute to
                                    ing balance incurred                                    Income     attribute to              balance
                                                               transferred     included                              minority
                                                     before                                    tax     the parent
                                                                into profit    in other                             shareholde
Shenzhen Textile (Holdings) Co., Ltd.                                                            The Semi-Annual Financial Report 2021


                                                    income tax and loss in      composite expenses          company           r
                                                                 the current       income
                                                                 period that    transfer to
                                                                  recognied      retained
                                                                  into other    income in
                                                                 comprehensi the current
                                                                 ve income in      period
                                                                 prior period

1. Other comprehensive income
                                      115,367,833 -1,338,625                                  -334,656.3 -1,003,968                    114,363,
that cannot be reclassified in the
                                              .87          .22                                          1          .91                  864.96
loss and gain in the future

Changes in fair value of
                                      115,367,833 -1,338,625                                  -334,656.3 -1,003,968                    114,363,
investments in other equity
                                              .87          .22                                          1          .91                  864.96
instruments

2.Other comprehensive income
                                      1,238,098.5 -4,045,320                                                -4,045,320                 -2,807,2
reclassifiable to profit or loss in
                                                5          .86                                                     .86                   22.31
subsequent periods

 Translation differences of
                                      1,238,098.5 -4,045,320                                                -4,045,320                 -2,807,2
 financial statements
                                                5          .86                                                     .86                   22.31
 denominated

Total of other comprehensive 116,605,932 -5,383,946                                           -334,656.3 -5,049,289                    111,556,
income                               .42        .08                                                     1          .77                  642.65

Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of arbitraged
items for adjustment: None

58. Special reserves

Not applicable

59. Surplus reserves

                                                                                                                                        In RMB

           Items              Year-beginning balance     Increase in the current      Decrease in the current            Year-end balance
                                                                  period                       period

Statutory surplus reserve               94,954,652.14                                                                             94,954,652.14

Total                                   94,954,652.14                                                                             94,954,652.14

Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021


60. Retained profits

                                                                                                                           In RMB

                       Items                              Amount of current period                 Amount of previous period

Retained earnings before adjustments at the year
                                                                              86,912,390.50                          49,307,764.03
beginning

Retained earnings after adjustments at the year
                                                                              86,912,390.50                          49,307,764.03
end

Add: Net profit attributable to owners of the
                                                                              76,603,074.39                          37,267,995.74
Company for the period

Less: Appropriation to statutory surplus reserve                                       0.00                           3,888,292.80

Common stock dividend payable                                                 15,195,655.47

Add:Other comprehensive earnings are carried
                                                                                                                      4,224,923.53
forward to retained earnings

Retained profits at the period end                                           148,319,809.42                          86,912,390.50


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                        1,097,424,726.81         859,513,585.39             853,157,761.73             758,822,814.42

Other business                           4,111,680.57               3,611,874.68              3,155,587.01            2,085,489.19

Total                                1,101,536,407.38         863,125,460.07             856,313,348.74             760,908,303.61

Income-related information:
                                                                                                                           In RMB
Shenzhen Textile (Holdings) Co., Ltd.                                                    The Semi-Annual Financial Report 2021


            Type                 Division 1                 Division 2               Division 3                 Total

Types of goods                    1,021,894,566.16             59,978,289.06             19,663,552.16        1,101,536,407.38

  Of which

Polarizer                         1,021,894,566.16                                                0.00        1,021,894,566.16

Property lease
                                                               59,978,289.06                      0.00           59,978,289.06
management and others

Textile                                       0.00                       0.00            19,663,552.16           19,663,552.16

Area                                949,528,109.45            152,008,297.93                                  1,101,536,407.38

  Of which

Domestic                            949,528,109.45                                                              949,528,109.45

Overseas                                                      152,008,297.93                                    152,008,297.93

Of which

Of which

Of which

Of which

Of which

Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB 0.00, of which RMB 0.00
is expected to be recognized as income in the year, RMB 0.00 is expected to be recognized as income in the year,
and RMB 0.00 is expected to be recognized as income in the year.
Other note: None

62.Taxes and surcharges

                                                                                                                         In RMB
                   Items                             Amount of current period                 Amount of previous period

Consumption tax                                                                                                              0.00

Urban construction tax                                                    281,149.75                                293,203.50

Education surcharge                                                       200,819.41                                208,749.85

Resource tax                                                                                                                 0.00

Property tax                                                             2,888,631.84                             1,431,139.71

Land use tax                                                              184,237.54                                    50,266.26

vehicle and vessel usage tax                                                    360.00                                       0.00

Stamp tax                                                                 717,598.47                                700,759.15
Shenzhen Textile (Holdings) Co., Ltd.                                               The Semi-Annual Financial Report 2021


Other                                                                    8,247.78                               5,609.59

Total                                                             4,281,044.79                              2,689,728.06

Other note: None

63.Sales expenses

                                                                                                                    In RMB

                     Items                    Amount of current period                  Amount of previous period

  Wage                                                            9,298,067.94                              3,554,124.69

 Transportation changes                                                     0.00                            4,551,167.40

 Exhibition fee                                                             0.00                                      0.00

 Business expenses                                                 522,657.33                                 193,747.29

 Samples and product loss                                          751,108.62                                 305,048.70

Property insurance                                                2,716,981.13                                        0.00

Sell                                                              5,768,718.15                              4,217,847.51

Travel expenses                                                    485,870.44                                 388,231.96

Other                                                              950,371.21                                 170,753.73

Total                                                           20,493,774.82                              13,380,921.28

Other note:The salary increase of sales expenses this year is mainly caused by the department adjustment of the
subsidiary, SAPO Photoelectric Co., Ltd., the increase of sales service fees is mainly due to the corresponding
increase of agent service fees due to the increase of sales volume of some customers, the transportation expenses
are included in the operating costs in this period, and the property insurance is mainly the new material insurance
purchased in this period.


64. Administrative expenses

                                                                                                                    In RMB

                     Items                    Amount of current period                  Amount of previous period

Wage                                                            38,236,906.16                              29,847,030.96

Depreciation of fixed assets                                      4,879,277.56                              4,973,342.05

Water and electricity                                             3,022,844.03                                893,936.96

Intermediary organ                                                1,931,057.09                              1,931,057.09

Intangible assets amortization                                     832,673.40                                 749,763.64

Travel expenses                                                    210,173.80                                 232,235.49

Office expenses                                                    443,729.99                                 429,662.27

Business entertainment                                             588,954.42                                 150,393.20
Shenzhen Textile (Holdings) Co., Ltd.                                      The Semi-Annual Financial Report 2021


Lawsuit expenses                                                    0.00                              30,953.77

Repair charge                                                604,512.02                              318,416.19

Property insurance                                           128,797.77                               91,409.02

Low consumables amortization                                 857,011.20                               22,644.20

Board fees                                                   109,620.00                               46,687.88

Rental fee                                                          0.00                             776,298.48

Other                                                       3,482,103.32                           3,853,634.46

Tax                                                       55,327,660.76                           44,347,465.66

Other note: None

65.R & D costs

                                                                                                           In RMB
                     Items              Amount of current period               Amount of previous period

Wage                                                        8,134,336.44                           5,751,277.54


Material                                                  18,818,987.18                           16,679,205.26


Depreciation                                                1,650,506.69                           1,470,406.20


Fuel & Power                                                 423,847.84                              553,582.61


      Travel expenses                                          96,760.54                              58,048.90


Other                                                          45,654.70                              48,530.44


                     Total                                29,170,093.39                           24,561,050.95

Other note: None

66.Financial Expenses

                                                                                                           In RMB
                     Items              Amount of current period               Amount of previous period

Interest expenses                                            379,800.97                              221,034.71

Interest income                                              -840,978.40                           -1,738,185.54

Exchange loss                                             -12,318,481.73                           1,579,207.02

Fees and other                                              3,564,625.68                           1,699,519.77

                     Total                                 -9,215,033.48                           1,761,575.96

Other note:None
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


67.Other income

                                                                                                                   In RMB
                   Items                     Amount of current period                 Amount of previous period

Government Subsidy                                               8,764,569.01                             13,045,221.53


68. Investment income

                                                                                                                   In RMB

                     Items                        Amount of this period                   Amount of last period

Long-term equity investment returns
                                                                        -412,713.12                       -2,253,932.85
accounted for by equity method

Investment income from the disposal of
                                                                          20,779.93                          518,152.41
long-term equity investment

Dividend income earned during investment
                                                                       1,122,007.80                        1,418,634.82
holdings in other equity instruments

Structured deposit interest                                            9,422,057.74                       14,249,971.25

Total                                                                 10,152,132.35                       13,932,825.63

Other note:None

69.Net exposure hedging income

Not applicable

70. Gains on the changes in the fair value

                                                                                                                  单位:元

                  Source                      Amount of this period                      Amount of last period

Transaction financial assets                                      914,599.37

Total                                                             914,599.37

Other note:None

71. Credit impairment loss

                                                                                                                   In RMB

                   Items                      Amount of this period                      Amount of last period

Loss of bad debts in other receivables                          -5,217,962.16                                114,166.37

Loss of bad accounts receivable                                   812,160.93                              -3,921,853.87

Loss of bad note receivable                                           58,202.39
Shenzhen Textile (Holdings) Co., Ltd.                                                           The Semi-Annual Financial Report 2021


Total                                                                        -4,347,598.84                                 -3,807,687.50

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
                                                                              -52,628,070.13                              -35,474,634.93
contract performance costs

Total                                                                         -52,628,070.13                              -35,474,634.93

Other note:None

73. Asset disposal income

                                                                                                                                  In RMB

                       Items                        Amount of current period                         Amount of previous period

I. Gains & losses on foreign investment in
                                                                                      0.00                                            0.00
fixed assets

II.Gains & losses on the disposal of fixed
                                                                                    -55.96                                     -6,837.44
assets


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                                                    18,938.83                           20,431.28                         18,938.83

Return insurance settlement
                                                    3,278,053.95                                  0.00                      3,278,053.95
income
Payable without payment                           17,140,459.60                                   0.00                    17,140,459.60

Total                                             20,437,452.38                              20,431.28                    20,437,452.38

Government subsidies recorded into current profits and losses:
                                                                                                                                  In RMB

                                                            Whether the
                                                              impact of
                                                                               Whether         Amount of      Amount of    Assets-relate
                                 Issuing                    subsidies on
    Items       Issuing body                    Nature                          special         current        previous    d/income-rela
                                 reason                      the current
                                                                               subsidies        period          period          ted
                                                              profit and
                                                                  loss

Other note:None
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


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
                                                        344,978.92                         3,275.19                      344,978.92
loss

Other                                                           0.00                    103,135.58

Total                                                   344,978.92                      106,410.77                       344,978.92

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                                                  7,936,142.04                               5,341,193.75

Deferred income tax expense                                                   -57,226.00                                 -82,801.88

                        Total                                               7,878,916.04                               5,258,391.87

        (2)Reconciliation of account profit and income tax expenses
                                                                                                                               In RMB

                                Items                                                 Amount of current period

Total profits                                                                                                        121,301,456.29

Income tax expenses calculated at the applicable tax rate                                                             30,325,364.07

Influence of different tax rates applied by some subsidiaries                                                         -8,211,001.88

Income not subject to tax                                                                                             -1,981,295.30

Non-deductible costs, expenses and losses                                                                                106,703.77

Tax impact by the unrecognized deductible losses and deductible
                                                                                                                     -10,420,724.52
temporary differences in previous years

Tax impact of unrecognized deductible losses and deductible
                                                                                                                       2,903,270.24
temporary differences

Tax impact of research and development fee plus deduction                                                             -4,375,514.01

Impact of income tax relief preferences                                                                                 -467,886.33

Income tax expense                                                                                                     7,878,916.04

Other note:None
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


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
                                                                   665,366.82                           30,410,217.36
financing product)

Letter of Credit Deposit                                        13,963,635.17                           50,473,165.17

Government Subsidy                                                7,242,800.00                          10,525,545.03

Current account                                                 16,893,575.28

Insurance claim                                                   3,255,114.00

Total                                                           42,020,491.27                           91,408,927.56

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                                      122,116,897.49                           63,184,256.28

Other                                                           38,830,126.18                           20,828,454.70

Total                                                          160,947,023.67                           84,012,710.98

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,
                                                               779,428,611.40                         1,711,990,437.06
principal and income

L/C margin for purchase of line 7
                                                                                                       100,799,633.00
equipment

Total                                                          779,428,611.40                        1,812,790,070.06

Note to other cash received related to other investment activities:None
Shenzhen Textile (Holdings) Co., Ltd.                                                        The Semi-Annual Financial Report 2021


(4).Cash paid related to other investment activities

                                                                                                                               In RMB

                     Items                             Amount of current period                    Amount of previous period

Structure deposit investment                                            732,374,977.65                             1,654,000,000.00

Total                                                                   732,374,977.65                             1,654,000,000.00


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
                                                                           7,820,298.30                                 8,981,300.40
incentive object

Total                                                                      7,820,298.30                                 8,981,300.40

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                                                                        113,422,540.25                       -8,991,180.85

Add: Impairment loss provision of assets                                           52,628,070.13                       39,282,322.43

Depreciation of fixed assets, oil and gas assets and
                                                                                   58,051,019.56                       54,769,598.66
consumable biological assets

             Depreciation of Use right assets

Amortization of intangible assets                                                    832,673.40                          749,763.64

Amortization of Long-term deferred expenses                                          390,173.02                          284,354.60

Loss on disposal of fixed assets, intangible assets and other
                                                                                      20,779.93                             6,837.44
long-term deferred assets
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


Fixed assets scrap loss                                                               427,672.86                              3,275.19

          Loss on fair value changes                                                  -914,599.37

Financial cost                                                                      -9,215,033.48                          221,034.71


Loss on investment                                                                 -10,131,352.42                       -13,932,825.63


Decrease of deferred income tax assets                                                 -57,226.00                          479,558.70


Increased of deferred income tax liabilities                                          -334,656.31                        -3,892,057.00

Decrease of inventories                                                            -95,326,175.24                       -73,812,662.03

Decease of operating receivables                                                   -84,942,673.31                       -86,494,322.83


Increased of operating Payable                                                     -77,494,749.27                       -44,293,172.26

          Other

Net cash flows arising from operating activities                                   -52,643,536.25                      -135,619,475.23

II. Significant investment and financing activities that
                                                                              --                                  --
without cash flows:

  Conversion of debt into capital

  Convertible corporate bonds maturing within one year

  Financing of fixed assets leased

3.Movement of cash and cash equivalents:                                    --                                  --


Ending balance of cash                                                             252,993,764.22                      173,706,279.73

Less: Beginning balance of cash equivalents                                        278,337,236.95                      268,646,588.18

     Add:End balance of cash equivalents

  Less: Beginning balance of cash equivalents

  Net increase of cash and cash equivalent                                         -25,343,472.73                       -94,940,308.45


(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                                                                252,993,764.22                                  278,337,236.95

Including:Cash at hand                                                        4,054.12                                       4,127.10
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


                Demand bank deposit                                       182,575,694.25                                271,085,025.10

        Demand other monetary funds                                          70,414,015.85                                7,248,084.75

III. Balance of cash and cash equivalents at
                                                                          252,993,764.22                                278,337,236.95
the period end

Including:Restricted cash and cash
equivalents used by parent or Group                                           8,450,000.00                                    750,000.00
equivalents

Other note:None

80. Note of statement of changes in the owner's equity

Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:
Not applicable

81. The assets with the ownership or use right restricted

                                                                                                                                 In RMB

                                                Book value at the end of the reporting
                         Items                                                                        Cause of restriction
                                                                 period

Monetary fund                                                                 8,450,000.00 Deposit for L/C

Intangible assets                                                            44,770,083.00 Mortgage

Construction in process                                                   257,003,447.13 Mortgage

Other receivable                                                          110,021,440.71 Mortgage

Fixed assets                                                              330,744,828.51 Mortgage

Total                                                                     750,989,799.35                       --

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                                         1,266,921.20 6.4601                                                8,184,437.64

         Euro

         HKD                                             106,174.11 0.8321                                                     88,347.48

           Yen                                        15,370,067.00 0.0584                                                    898,042.28

Account payable                                  --                                 --

Including:USD                                        11,884,389.83 6.4601                                               76,774,346.75
Shenzhen Textile (Holdings) Co., Ltd.                                                   The Semi-Annual Financial Report 2021


         Euro

         HKD                                          278,280.00 0.8321                                             231,556.79



Long-term borrowing                             --                             --

Including:USD

         Euro

         HKD

Other receivable

      Including:USD                                   37,399.02 6.4601                                             241,601.41

Other payable

      Including:USD                                  676,686.00 6.4601                                           4,371,459.23

         HKD                                             3,044.46 0.8321                                              2,533.30

     Yen                                             3,381,984.00 0.0584                                            197,602.57

  Euro                                                 22,500.00 7.6862                                             172,939.50

Account payable

Including:USD                                       4,660,561.49 6.4601                                        30,107,693.31

                Yen                            2,863,312,845.00 0.0584                                         167,297,642.92

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

Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:

84. Government subsidies

(1)Government subsidies confirmed in current period

                                                                                                                        In RMB

                                                                                                        Amount included in
                            Items                                     Amount             Project
                                                                                                       current profit and loss

Grant funds for TFT-LCD polarizer industry project                    13,000,000.00 Deferred income                 649,999.98

Grant funds for TFT-LCD polarizer narrow line (line 5) project         5,000,000.00 Deferred income                 250,000.02
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


Shenzhen polarizing materials and Technology Engineering
                                                                    5,000,000.00 Deferred income               250,000.02
Laboratory innovation venture capital

Import equipment and technical subsidy (Line 4 and Line 5)          1,750,902.00 Deferred income                87,545.10

Grant from municipal R&D center (technical center)                  3,000,000.00 Deferred income               150,000.00

Matching funds of Shenzhen polarizing materials and technical
                                                                     500,000.00 Deferred income                 25,000.02
engineering laboratory(Pingshan)

Matching funds for strategic emerging industry projects of the
                                                                     500,000.00 Deferred income                 25,000.02
National Development and Reform Commission(Pingshan)

In 2012, Shenzhen encouraged the introduction of advanced
                                                                     143,881.00 Deferred income                  7,194.06
technology import subsidy funds

Local supporting funds for TFT-LCD polarizer Phase II Project
                                                                   15,000,000.00 Deferred income               750,000.00
(line 6)

Payment for production plant and equipment of Line 6               40,000,000.00 Deferred income             1,999,999.98

Innovation and venture funds for TFT-LCD polarizer phase II
                                                                     500,000.00 Deferred income                 25,000.02
project (Line 6)

Fund for key technology R&D and technical research project of
                                                                    5,000,000.00 Deferred income               250,000.02
optical compensation film for polarizer

Special fund for strategic emerging industries and future
development in Guangdong Province, the third batch of
                                                                    5,000,000.00 Deferred income             1,250,000.04
supporting programs in 2016 - supporting programs for
national/provincial projects

Polarization Industrialization Project for Super Large-sized TVs
                                                                   30,000,000.00 Deferred income                     0.00
(Line 7) Central Budget Investment

Research & development subsidy for key technologies of
                                                                    2,000,000.00 Deferred income                     0.00
ultra-thin IPS polarizer for smart phone terminals

Finance committee of Shenzhen municipality (R&D of key
technology of high-performance polarizer for large size display     6,000,000.00 Deferred income                     0.00
panel of 2018N007)

Special fund subsidies agreement for improving the quality of
                                                                    1,033,507.00 Deferred income               221,465.76
atmospheric environment in Shenzhen

2020 Double subsidies for special technological renovation
                                                                     190,000.00 Deferred income                  9,499.98
investment project

Grant FOR the key technology R&D project of low color
partial circular polarizer for AMOLED with fixed curvature of       2,500,000.00 Deferred income                     0.00
2020N028

Income-related government subsidies                                 1,387,757.55 Other income                1,387,757.55

Old elevator renovation fund subsidies                               325,380.00 Deferred income                 55,877.86

Subsidies for operation in lieu of training in Luohu District         15,500.00 Deferred income                 15,500.00
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


Technical renovation equipment subsidy for dyeing project        130,000.00 Deferred income                 32,500.00

Special fund subsidies agreement for improving the quality of
                                                                 520,000.00 Deferred income                 26,000.00
atmospheric environment in Shenzhen

Textile special funds                                           2,000,000.00 Deferred income                71,428.58

Enterprises will absorb one-time subsidies for the registered
                                                                  60,000.00 Deferred income                 60,000.00
poor labor force

2019 Pingshan District Harmonious Labor Relations Enterprise
                                                                 500,000.00 Other income                   500,000.00
incentive fund

The second batch of Science and Technology Innovation
Special Fund in 2020 (identification and award for high-tech     300,000.00 Other income                   300,000.00
enterprises)

The second batch of Science and Technology Innovation
                                                                    4,800.00 Other income                    4,800.00
Special Fund in 2020 (Intellectual Property Award)

The second batch of scientific and technological innovation
                                                                 360,000.00 Other income                   360,000.00
special funds for 2020 (standardization funding)


(2)Government subsidy return

□ Applicable √ Not applicable

85.Other

Not applicable

VIII. Changes of merge scope

1. Business merger not under same control

(1) Business merger not under same control in reporting period

Not applicable

(2) Combined cost and goodwill

Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Not applicable

(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、

Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


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

Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.Not
applicable

4. The disposal of subsidiary

Whether there is a single disposal of the investment to subsidiary and lost control

□ Yes √No


 Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
 reporting period

 □ Yes √ No

 5. Other reasons for the changes in combination scope

Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.) caused by other
Shenzhen Textile (Holdings) Co., Ltd.                                                  The Semi-Annual Financial Report 2021


reasons and relevant information:

6.Other

Not applicable

IX. Equity in other entities

1. Equity in subsidiary

       (1) The structure of the enterprise group


                                        Main   Registered                             Share-holding ratio
           Subsidiary                                          Business nature                                 Acquired way
                                   operation     place                               Directly    Indirectly

Shenzhen Lishi Industry                                        Domestic trade,                                    Establish
                                   Shenzhen    Shenzhen                               100.00%
Development Co., Ltd                                        Property Management

                                                               Accommodation,                                     Establish
Shenzhen Huaqiang Hotel            Shenzhen    Shenzhen      restaurants, business    100.00%
                                                                    center;

Shenzhen Shenfang Real Estate                                                                                     Establish
                                   Shenzhen    Shenzhen     Property Management       100.00%
Management Co., Ltd.

                                                             Production of fully
Shenzhen Beauty Century                                                                                           Establish
                                   Shenzhen    Shenzhen      electronic jacquard      100.00%
Garment Co., Ltd.
                                                            knitting whole shape

Shenzhen Shenfang Sungang                                                                                         Establish
Real Estate Management Co.,        Shenzhen    Shenzhen     Property Management       100.00%
Ltd.

                                                            Polarizer production
SAPO Photoelectric                 Shenzhen    Shenzhen                                60.00%                 Purchase
                                                            and sales

Shenzhen Textile Import &                                   Operating import and                                  Establish
                                   Shenzhen    Shenzhen                                            100.00%
export Co., Ltd.                                              export business


Shengtou (Hongkong) Co.,Ltd.                                 Production and sales                                 Establish
                                  Hongkong     Hongkong                                            100.00%
                                                                 of polarizer

Shenzhen Shengjinlian                                                                                             Establish
                                   Shenzhen    Shenzhen Property leasing                           100.00%
Technology Co., Ltd.

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
Shenzhen Textile (Holdings) Co., Ltd.                                                                         The Semi-Annual Financial Report 2021


(2)Significant not wholly-owned subsidiaries

                                                                                                                                                      In RMB

                                                             Profit or loss attributable
                                 Holding proportion of                                             Dividend declared to             Closing balance of
           Name                                                     to non-controlling
                               non-controlling interest                                           non-controlling interest        non-controlling interest
                                                                         interest

SAPO Photoelectric                                  40.00%                 36,819,465.86                                  0.00            1,169,900,541.09

Other note:None


(3)Main financial information of significant not wholly-owned subsidiaries

                                                                                                                                                 In RMB


                                    Closing balance                                                           Beginning balance

                                                          Non-curr                                                                      Non-curr
Subsidia               Non-curr                                                                   Non-curr
             Current                 Total      Current        ent        Total      Current                    Total         Current      ent       Total
   ries                  ent                                                                          ent
             assets                 assets   liabilities Liabilitie liabilities          assets                 assets    liabilities Liabilitie liabilities
                        assets                                                                      assets
                                                                s                                                                          s

SAPO
             1,549,85 2,350,39 3,900,25 352,609, 650,208, 1,002,81 1,493,44 2,177,13 3,670,58 400,104, 452,171, 852,276,
Photoele
             6,788.87 9,213.55 6,002.42          121.70      839.08 7,960.78 9,647.08 0,756.68 0,403.76                        999.99     112.38      112.37
ctric

                                                                                                                                                      In RMB

                                   Amount of current period                                                 Amount of previous period

                                                                        Cash flow                                                                Cash flow
                                                       Total                                                                      Total
 Subsidiaries     Operating                                               from             Operating                                               from
                                   Net profit       comprehensi                                              Net profit       comprehensi
                   revenue                                              operating           revenue                                              operating
                                                     ve income                                                                 ve income
                                                                        activities                                                               activities

SAPO             1,026,352,28 79,133,750.2 79,133,750.2 -49,132,316.0 802,362,703. -28,210,564.1 -28,210,564.1 -114,179,379.
Photoelectric             9.62                  5                   5                9                39                  4                4                  34

Other note

(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
Shenzhen Textile (Holdings) Co., Ltd.                                                       The Semi-Annual Financial Report 2021


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
Guanhua Printing
                      Shenzhen          Shenzhen         Property leasing              50.16%                   Equity method
& 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



Current assets                                                              30,735,563.91                           19,854,144.21

Non-current assets                                                       234,362,180.35                            241,137,964.49

Total assets                                                             265,097,744.26                            260,992,108.70

Current liabilities                                                         16,939,397.58                           12,261,343.60

Non-current liabilities                                                     37,309,059.12                           37,356,444.69
Shenzhen Textile (Holdings) Co., Ltd.                                                 The Semi-Annual Financial Report 2021


Total liabilities                                                     54,248,456.70                           49,617,788.29

Attributable to shareholders of the parent
                                                                     210,849,287.56                          211,374,320.41
company

Share of net assets calculated by stake                              105,762,002.64                          106,025,359.12

--Goodwill                                                            21,595,462.44                           21,595,462.44

--Other                                                                 285,343.61                                  285,343.61

Book value of equity investment in joint
                                                                     127,642,808.69                          127,906,165.17
ventures

Operating income                                                       8,614,658.31                           14,623,800.97

Financial expenses                                                       -53,530.25                                 -39,339.28

Income tax expenses                                                    1,990,580.05                               -2,118,023.83

Net profit                                                              -525,032.86                           -3,422,861.88

Total comprehensive income                                              -525,032.86                           -3,422,861.88

(3) Main financial information of significant associated enterprise

Not applicable

(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
                                                                               0.00                           10,797,023.14
the following items

Total amount of the pro rata calculation of
                                                              --                                      --
the following items

Associated enterprise:                                       --                                      --

Total book value of the investment                                     5,031,271.42                               9,225,948.92

Total amount of the pro rata calculation of
                                                              --                                      --
the following items

--Net profit                                                            -149,356.64                           -1,228,263.90

--Other Comprehensive income                                          -4,045,320.86                                 388,316.57

--Total comprehensive income                                          -4,194,677.50                                -839,947.33

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
Shenzhen Textile (Holdings) Co., Ltd.                                             The Semi-Annual Financial Report 2021


Not applicable

(6) The excess loss of joint venture or associated enterprise

Not applicable

(7) The unrecognized commitment related to joint venture investment

Not applicable

(8) Contingent liabilities related to joint venture or associated enterprise investment

Not applicable

4. Significant common operation

Not applicable

5. Equity of structure entity not including in the scope of consolidated financial statements

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 disperses
the risks of financial instruments through appropriate diversified investment and business portfolio, and reduces
the risks concentrated in a single industry, a specific region or a certain counterparty by formulating corresponding
risk management policies.
(I)Credit Risk
     (1) Credit risk
     Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting in
financial losses of the Company.
    The Company manages credit risk according to portfolio classification. Credit risks mainly arise from bank
deposits, notes receivable, accounts receivable and other receivables.
    The bank deposits of the Company are mainly deposited in state-owned banks and other large and
medium-sized listed banks, and such bank deposits are not expected to have significant credit risks.
      For notes receivable, accounts receivable, other receivables and long-term receivables, the Company sets
relevant policies to control credit risk exposure. The Company evaluates customers' credit qualifications based on
their financial status, credit records and other factors such as current market conditions, and sets corresponding
Shenzhen Textile (Holdings) Co., Ltd.                                              The Semi-Annual Financial Report 2021


credit periods. The Company will regularly monitor customers' credit records. For customers with bad credit
records, the Company will adopt written dunning, shortening of credit period or cancellation of credit period to
ensure that the overall credit risk of the Company is within the controllable range.
     Debtors of accounts receivable of the Company are customers distributed in different industries and regions.
The Company continuously evaluates the financial status of accounts receivable and purchases credit guarantee
insurance when appropriate.
     The maximum credit risk exposure the company is subject to is the book amount of each financial asset in
the balance sheet. The Company has not provided any other guarantee that may expose the Company to credit
risk.
        (2) Liquidity risk
     Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle by
delivering cash or other financial assets.
      The member companies of the Company are responsible for their own cash management, including
short-term investment of cash surplus and raising loans to meet the estimated cash demand (if the loan amount
exceeds certain preset authorization limits, it needs to be approved by the Board of Directors of the Company). In
addition, the Company will also consider negotiating with suppliers to reduce part of the debt amount, or obtain
funds in advance by selling long-aged accounts receivable, so as to reduce the cash flow pressure of the Company.
The Company's policy is to regularly monitor the short-term and long-term liquidity demand and whether it meets
the requirements of the loan agreement, so as to ensure that sufficient cash reserves and securities that can be
realized at any time are maintained, and at the same time, to obtain sufficient reserve funds that major financial
institutions promise to provide, so as to meet the short-term and long-term liquidity demand.
        (3) Market risk
     Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk and other
price risks.
        Interest rate risk
     Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate
due to changes in market interest rates. Interest rate risk can be caused by recognized interest-bearing financial
instruments and unrecognized financial instruments (such as certain loan commitments).
     The Company's interest rate risk mainly arises from long-term bank loans. Financial liabilities with floating
interest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixed interest rate
expose the Company to fair value interest rate risk.
    The Company pays close attention to the impact of interest rate changes on its interest rate risk. At present,
the Company has not adopted interest rate hedging policy. However, the management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate risk when necessary.
      For financial instruments held on the balance sheet date, which expose the Company to fair value interest rate
risk, the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of remeasuring
the financial instruments according to the new interest rate, assuming that the interest rate changes on the balance
sheet date. For the floating interest rate non-derivative instruments held on the balance sheet date, which expose
the Company to cash flow interest rate risk, the impact of the above sensitivity analysis on net profit and
shareholders' equity is the impact of the above interest rate changes on the annual estimated interest expense or
income. Last year's analysis was based on the same assumptions and methods.
        Exchange rate risk
Shenzhen Textile (Holdings) Co., Ltd.                                                        The Semi-Annual Financial Report 2021


     Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments will
fluctuate due to the change of foreign exchange rate. Exchange rate risk can be derived from financial instruments
denominated in foreign currencies other than the functional currency.
     Exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial position
and cash flow of the Company. The ratio of foreign currency assets and liabilities held by the Company to the total
assets and liabilities is not significant. Therefore, the Company believes that the exchange rate risk it faces is not
significant.

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 measurement     Fir value measurement     Fir value measurement
                                                                                                                   Total
                                items at level 1          items at level 2           items at level 3

I. Consistent fair value
                                        --                       --                          --                      --
measurement

(1) Transactional
                                    488,186,286.75                                          160,695,872.76         648,882,159.51
Financial Asset

1.Financial assets at fair
value through profit or             488,186,286.75                                          160,695,872.76         648,882,159.51
loss

(1)Debt instrument
                                    488,186,286.75                                          160,695,872.76         648,882,159.51
investment

(III) Other equity
                                        8,790,765.62                                        180,478,036.70         189,268,802.32
instrument investment

(II)Receivable financing                                                                    50,548,060.18          50,548,060.18

(IV)Other non-current
                                                                                             28,500,000.00          28,500,000.00
financial asset

Total liabilities measured
at fair value on a                  496,977,052.37                                          420,221,969.64         917,199,022.01
non-ongoing basis

II Inconsistent fair value
                                        --                       --                          --                      --
measurement


2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1


       Quotes of the same assets or liabilities in active markets (unadjusted). 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, 2021.
Shenzhen Textile (Holdings) Co., Ltd.                                            The Semi-Annual Financial Report 2021


3. Items measured based on the continuous or uncontinuous level 2nd fair value, valuation technique as
used, nature of important parameters and quantitative information

    Use observable input values other than the market quotation of assets or liabilities in the Level I directly (i.e.
price) or indirectly (i.e. derived from price).

4. Items measured based on the continuous or uncontinuous level 3rd fair value, valuation technique as
used, nature of important parameters and quantitative information

     Assets or liabilities use any input value that is not based on observable market data (unobservable input
value).

     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
Shenzhen Textile (Holdings) Co., Ltd.                                                      The Semi-Annual Financial Report 2021


9.Other

None

XII. Related parties and related-party transactions

1.Parent company information of the enterprise


                                                                                         The parent company The parent company
       Name            Registered address           Nature          Registered capital    of the Company's     of the Company’s
                                                                                          shareholding ratio       vote ratio

                         18/F, Investment    Equity investment ,
Shenzhen
                       Building, Shennan Real-estate
Investment Holdings                                                RMB 28,009 million                46.21%                46.21%
                          Road, Futian       Development and
Co.,Ltd.
                       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:
None
Other note: None

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

Hangzhou Jinjiang Group Co., Ltd.
                                                                   The controlling party of SAPO Shareholder

Hangzhou Jinhang Investment Fund Partner ship (LP)                 A subsidiary of Hangzhou Jinjiang Group Co., Ltd.

Shengto (HK) Co., Ltd.                                                       The Company Executives are Director of the company
Shenzhen Textile (Holdings) Co., Ltd.                                                    The Semi-Annual Financial Report 2021


Zhejiang Hengjie Industry Co., Ltd.                              A subsidiary of Hangzhou Jinjiang Group Co., Ltd.

Hengmei Photoelectric Co., Ltd.                                  Sharing Company of Hangzhou Jinjiang Group Co., Ltd.

Shenzhen Xinfang Knitting Co., Ltd.                                                    Sharing Company


Shenzhen Dailishi Underwear Co., Ltd.                                                  Sharing Company

Other note
In July 2021, Jinhang Investment and Advantage Ford completed their internal decision-making approval, and the
delivery conditions for Advantage Ford to receive 100% partnership shares of Jinhang Investment have been met,
and both parties will promote the transfer of partnership shares. After the completion of the transfer procedure,
Advantage Ford will directly hold 99.93333% of the partnership share of Jinhang Investment; Meanwhile,
Zhejiang Hengjie Industrial Co., Ltd. indirectly holds a partnership share of 0.06667% of Jinhang Investment. As
of July 28, 2021, for the above equity transfer, the industrial and commercial change registration procedures have
been completed. After the completion of this equity transfer, Advantage Ford holds 40% equity of SAPO
Photoelectric through Jinhang Investment, and the strategic investor of SAPO Photoelectric has changed from
Jinjiang Group to Advantage Ford. For details, please refer to "Section 6 Important Matters XIV. Important
Matters of Company Subsidiaries (V) Matters on Waiver of Preemption Right and Equity Transfer of Holding
Subsidiaries" in this report.

5. Related transactions.

    (1)Related transactions on purchasing goods and receiving services

Acquisition of goods and reception of labor service
Not applicable
Related transactions on sale goods and receiving services
Not applicable
 (2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
     Related guarantee
                                                                                                                           In RMB

                                                                                                        Whether the guarantee
Guaranteed party                            Amount     Guarantee start date     Guarantee end date
                                                                                                            has been fulfilled

SAPO photoelectric                    326,249,400.00 September 8,2020                                  No

The Company is the secured party
Not applicable


(5) Inter-bank lending of capital of related parties:

                                                                                                                           In RMB
Shenzhen Textile (Holdings) Co., Ltd.                                                           The Semi-Annual Financial Report 2021


        Related party                Amount                       Start date               Expiring date                 Note

Borrowing fund:

Shenzhen Guanhua
                                                                                                              The annual lending rate
Printing & Dyeing Co.,                     3,806,454.17 July 30,2019
                                                                                                              is 0.30%
Ltd.


(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
                                                                                2,512,499.00                              3,067,183.00
                  personnel


(8) Other related transactions

None

6. Receivables and payables of related parties

(1)Receivables

                                                                                                                                  In RMB

                                                              Amount at year end                     Amount at year beginning
         Name               Related party
                                                 Balance of Book         Balance of Book       Balance of Book      Bad debt Provision

                        Shenzhen Tianma
Account receivable      Microelectronics               1,472,959.68                73,647.98           581,696.96               25,652.84
                        Co., Ltd.

                        Hengmei
Account receivable      Photoelectric Co.,               168,472.52                 8,423.63        20,879,229.37           920,774.02
                        Ltd.

Other Account           Anhui Huapeng
                                                       1,800,000.00             1,800,000.00         1,800,000.00         1,800,000.00
receivable              Textile Company



(2)Payables

                                                                                                                                  In RMB

              Name                            Related party                    Amount at year end          Amount at year beginning
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


                                 Hengmei Photoelectric Co.,
Account payable                                                                         336,847.20                   35,787,643.44
                                 Ltd.

                                 Shenzhen Xinfang Knitting Co.,
Other payable                                                                           244,789.85                      244,789.85
                                 Ltd.

                                 Shenzhen Changlianfa Printing
Other payable                                                                         2,023,699.95                    1,580,949.95
                                 & dyeing Co., Ltd.

Other payable                    Yehui International Co.,Ltd.                         1,247,236.00                    1,143,127.81

                                 Shengtou (Hongkong)Co.,
Other payable                                                                           315,000.00                      315,000.00
                                 Ltd.

                                 Shenzhen Guanhua Printing &
Other payable                                                                         3,811,240.92                     3,811,240.92
                                 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
                                                                                                                      7,823,298.30
current period
The scope of executive price of the company’s outstanding share options
                                                                            0 yuan, 0 Year,
at the end of the period and the remaining term of the contract
The scope of executive price of the company’ other equity instruments at
                                                                            0 yuan, 0 Year,
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’
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
Shenzhen Textile (Holdings) Co., Ltd.                                                             The Semi-Annual Financial Report 2021


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 with 2016 is not less than 70%, and is not
The first restriction lifting period
                                       lower than the 75 fractiles level of comparable listed companies in the same industry; in

                                       2018, the proportion of optical film business such as polarizers to operating revenue is no

                                       less than 70%.

                                       In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the
                                       75 fractiles level of the comparable listed companies in the same industry; the growth rate
The second restriction lifting of operating revenue in 2019 compared with 2016 is not less than 130%, and is not lower
period                                 than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the
                                       proportion of optical film business such as polarizers to operating revenue is not less than
                                       75%.
                                       In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than
                                       the 75 fractiles level of comparable listed companies in the same industry; the growth rate
The      third   restriction   lifting of operating revenue in 2020 is not less than 200% compared to 2016, and is not lower than
period                                 the 75 fractiles level of comparable listed companies in the same industry. In 2020, the
                                       proportion of optical film business such as polarizers to operating revenue will be no less
                                       than 80%.

    Note: Earnings per share=net profit/total capital stock attributable to common shareholders of the Company
upon deduction of non-recurring profit and loss.

     On January 15, 2021, the company held the 35th meeting of the 7th Board of Directors and the 25th meeting
of the 7th Board of Supervisors. The board of directors deliberated and approved the "Proposal on Repurchase and
Cancellation of Some Restricted Stocks", which intends to repurchase and cancel 7,950 restricted stocks held by
an original incentive object who resigned due to personal reasons, at a repurchase price of RMB 5.73 per share; It
is proposed to repurchase and cancel the 6,000 restricted shares held by a retired incentive object at a price of 6.23
yuan per share.
    On February 2, 2021, the company held the first extraordinary general meeting of shareholders in 2021 to
consider and pass the "Proposal on Repurchase and Cancellation of Certain Restricted Stocks", agreeing to the
company's total holdings of 1 original incentive object who resigned due to personal reasons 7,950 restricted
stocks were repurchased and cancelled at a repurchase price of 5.73 yuan/share; agreed that the company would
repurchase and cancel 6,000 restricted stocks held by a retired incentive object at a repurchase price of 6.14
yuan/share, in total 13,950 restricted stocks were repurchased and cancelled
    On March 10, 2021, the company held the second meeting of the eighth board of directors and the second
meeting of the eighth board of supervisors. The "Proposal on Repurchase and Cancellation of Certain Restricted
Stocks" was reviewed and passed, and the company agreed to provide incentives to 102 A total of 1,236,480
Shenzhen Textile (Holdings) Co., Ltd.                                                     The Semi-Annual Financial Report 2021


restricted stocks held in the third period that did not meet the conditions for lifting the restrictions were
repurchased and cancelled. The repurchase price was calculated as the grant price of RMB 6.26 per share plus the
interest on bank deposits during the same period.
     On April 7, 2021, the company held the 2020 Annual General Meeting of Shareholders to review and approve
the Proposal on Repurchase and Cancellation of Some Restricted Stocks, and agreed that the company would
repurchase and cancel 1,236,480 restricted stocks held by 102 incentive objects in the third issue that did not meet
the conditions for lifting the restrictions on sales, and the repurchase price was RMB 6.26 per share.
     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

3. The Stock payment settled by cash

□ Applicable √ Not applicable

4. Modification and termination of the stock payment

None

5.Other

None

XIV. Commitments

1. Significant commitments

Significant commitments at balance sheet date

As of June 30,2021,The company does not disclose the pension plan undisclosed matter should exist.
Shenzhen Textile (Holdings) Co., Ltd.                                       The Semi-Annual Financial Report 2021


2. Contingency

 (1) Significant contingency at balance sheet date

As of June 30,2021,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

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
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


2. Liabilities restructuring

Not applicable

3. Replacement of assets

(1) Non-monetary assets exchange

Not applicable

 (2) Other assets exchange

Not applicable

4. Pension plan

Not applicable

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
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 lease and Offset        between
Items                Polarizer                Textile                                                     Total
                                                                    other          divisions

Operating income         1,021,894,566.16     19,708,357.76        62,453,579.64          -2,520,096.18      1,101,536,407.38

Including: revenue
from foreign             1,021,894,566.16     19,663,552.16        59,978,289.06                  0.00       1,101,536,407.38
transaction
Shenzhen Textile (Holdings) Co., Ltd.                                                                The Semi-Annual Financial Report 2021


 Revenue from
 inter-segment                             0.00               44,805.60             2,475,290.58            -2,520,096.18                 0.00
 transactions
 Including:      revenue
                                                              44,805.60              786,382.57              -831,188.17                  0.00
 from main business
 Operating cost               831,130,678.94            16,154,781.82              17,935,623.64            -2,095,624.33      863,125,460.07
 Including:         main
                              831,130,678.94            16,154,781.82              12,634,840.95             -406,716.32       859,513,585.39
 business cost
 Operating profit              72,798,937.77                 309,753.35            28,117,665.24               -17,373.53      101,208,982.83

 Total assets                3,889,915,366.28           42,066,816.95        3,257,565,182.73        -2,006,330,640.62        5,183,216,725.34

 Total indebtedness          1,000,122,983.57           24,312,187.58          207,779,180.41              -43,500,945.15     1,188,713,406.41


(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

                                           Amount in year-end                                        Amount in year-beginning
                             Book balance         Bad debt provision                    Book balance          Bad debt provision
       Category                                                            Book
                                      Proportio              Proportio                           Proportio              Proportio Book value
                           Amount                 Amount                   value      Amount                  Amount
                                        n(%)                   n(%)                                 n(%)                    n(%)

 Including:

 Accrual of bad debt
                           2,860,63               143,031.               2,717,606 1,538,316                                        1,461,400.2
 provision by                         100.00%                   5.00%                              100.00% 76,915.80        5.00%
                              8.42                      92                     .50         .00                                               0
 portfolio
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


Including:

                        2,860,63             143,031.            2,717,606 1,538,316                                     1,461,400.2
Total                              100.00%               5.00%                           100.00% 76,915.80       5.00%
                            8.42                   92                     .50      .00                                            0

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: 143,031.92 yuan
                                                                                                                             In RMB

                                                                            Closing balance
              Name
                                         Book balance                     Bad debt provision                    Proportion

Within 1 year                                       2,860,638.42                         143,031.92                          5.00%

Notes of the basis of recognizing the group: The combination of the ageing status of accounts receivable as a
credit risk feature.
Accrual of bad debt provision by portfolio
                                                                                                                             In RMB

                                                                            Closing balance
              Name
                                         Book balance                     Bad debt provision                    Proportion



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)                                                                                      2,860,638.42

Total                                                                                                                  2,860,638.42


(2) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
                                                                                                                             In RMB

                                                        Amount of change in the current period
    Category         Opening balance                        Reversed or                                             Closing balance
                                         Accrual                                 Write-off             Other
                                                         collected amount
Shenzhen Textile (Holdings) Co., Ltd.                                                         The Semi-Annual Financial Report 2021


Accrual of bad
debt provision by           76,915.80        66,116.12                                                                     143,031.92
portfolio:

Total                       76,915.80        66,116.12                                                                     143,031.92

Where the significant amount of the reserve for bad debt recovered or reversed: 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                        Closing balance                      Proportion %             Balance of Bad debt provision
  Shenzhen Textile Building &
                                                    2,860,638.42                             100.00%                       143,031.92
Peripheral rent

Total                                               2,860,638.42                             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

Other accounts receivable                                                    9,932,178.00                                 7,450,934.40

Total                                                                        9,932,178.00                                 7,450,934.40


(1)Interest receivable

1) Category of interest receivable

Not applicable
Shenzhen Textile (Holdings) Co., Ltd.                                                           The Semi-Annual Financial Report 2021


2) Significant overdue interest

Not applicable
3)Bad-debt provision
□ Applicable √ 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

□ Applicable √ 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

Deposit                                                                           10,000.00                                    10,000.00

Unit account                                                               15,769,395.10                                16,369,395.10

Internal current account                                                   10,216,001.37                                 7,175,600.00

Spare funds and employee borrowing                                              171,434.00

Other                                                                             25,200.01                                    25,200.01

Total                                                                      26,192,030.48                                23,580,195.11

2)Bad-debt provision
                                                                                                                                 In RMB

                                      Stage 1                Stage 2                          Stage 3

                                  Expected credit                                  Expected credit losses for
        Bad Debt Reserves                           Expected credit loss over                                           Total
                                  losses over the                                   the entire duration (credit
                                                    life (no credit impairment)
                                  next 12 months                                     impairment occurred)

Balance as at January 1, 2021        1,018,014.39                                                15,111,246.32          16,129,260.71

Balance as at January 1, 2021
                                       ——                   ——                             ——                     ——
in current
Shenzhen Textile (Holdings) Co., Ltd.                                                      The Semi-Annual Financial Report 2021


Provision in the current period          130,591.77                                                                  130,591.77

Balance as at June 30,2021           1,148,606.16                                           15,111,246.32         16,259,852.48

Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
                                                                                                                         In RMB

                                 Aging                                                     Closing balance

Within 1 year(Including 1 year)                                                                                   8,737,035.38

1-2 years                                                                                                          2,410,316.25

2-3 years                                                                                                            328,819.35

Over 3 years                                                                                                      14,715,859.50

  3-4 years                                                                                                          454,759.77

  4-5 years                                                                                                        1,800,000.00

  Over 5 years                                                                                                    12,461,099.73

Total                                                                                                             26,192,030.48


3) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision:
                                                                                                                         In RMB

                                                        Amount of change in the current period
    Category        Opening balance                           Reversed or                                       Closing balance
                                             Accrual                           Write-off            Other
                                                            collected amount

Accrual of bad
debt provision by      15,111,246.32                                                                              15,111,246.32
single item

Accrual of bad
debt provision by       1,018,014.39           130,591.77                                                          1,148,606.16
portfolio

Total                  16,129,260.71           130,591.77                                                         16,259,852.48

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
Shenzhen Textile (Holdings) Co., Ltd.                                                              The Semi-Annual Financial Report 2021


                                                                                                Portion in total other Bad debt provision
Name                          Nature             Year-end balance               Age
                                                                                                receivables(%)           of year-end balance

First                  Unit account                  11,389,044.60 Over 5 years                              43.48%            11,389,044.60

                       Internal current
Second                                               10,216,001.37 Within 2 years                            39.00%             1,029,700.07
                       account

Third                  Unit account                   1,800,000.00 4-5 years                                     6.87%          1,800,000.00

Fourth                 Unit account                   1,018,295.37 1-4 years                                     3.89%          1,018,295.37

Fifth                                                      592,420.00 Over 5 years                               2.26%            592,420.00

Total                            --                  25,015,761.34              --                           95.50%            15,829,460.04


(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

                                          Closing balance                                              Opening balance
        Items                              Provision for                                                 Provision for
                     Book balance                               Book value           Book balance                             Book value
                                            impairment                                                   impairment

Investments in
                   1,972,630,835.39         16,582,629.30 1,956,048,206.09 1,972,630,835.39               16,582,629.30 1,956,048,206.09
subsidiaries
Investments in
associates and       132,674,080.11                   0.00     132,674,080.11        147,929,137.23                  0.00    147,929,137.23
joint ventures

Total              2,105,304,915.50         16,582,629.30 2,088,722,286.20 2,120,559,972.62               16,582,629.30 2,103,977,343.32


(1)Investment to the subsidiary

                                                                                                                                      In RMB

                                                                       Increase /decrease in reporting                           Closing
                                                                                       period                    Closing        balance of
                  Name                          Opening balance
                                                                       Add Decrea Withdra                        balance       impairment
                                                                                                    Other
                                                                       invest    sed        wn                                  provision
Shenzhen Textile (Holdings) Co., Ltd.                                                                 The Semi-Annual Financial Report 2021


                                                                              ment invest impairm
                                                                                    ment     ent
                                                                                           provisio
                                                                                               n

                                                                                                               1,910,247,781
SAPO Photoelectric                                    1,910,247,781.94                                                           14,415,288.09
                                                                                                                           .94
Shenzhen Lisi Industrial Development
                                                           8,073,388.25                                          8,073,388.25
Co., Ltd.
Shenzhen Beauty Century Garment Co.,
                                                         14,696,874.34                                         14,696,874.34      2,167,341.21
Ltd.

Shenzhen Huaqiang Hotel                                  15,489,351.08                                         15,489,351.08
Shenzhen Shenfang Real Estate
                                                           1,713,186.55                                          1,713,186.55
Management Co., Ltd.

Shenzhen Shenfang Sungang Real Estate
                                                           5,827,623.93                                          5,827,623.93
Management Co., Ltd.

                                                                                                               1,956,048,206
Total                                                 1,956,048,206.09                                                           16,582,629.30
                                                                                                                           .09


(2)Investment to joint ventures and associated enterprises

                                                                                                                                          In RMB

                                                      Increase /decrease in reporting period                                              Closing
                                                                    Adjustm                             Withdr                            balance
                                                      Gain/loss      ent of                Declaratio    awn                                of
              Opening        Add                                                                                           Closing
  Name                                Decreased          of          other    Other equity n of cash impair                               impair
              balance        invest                                                                              Other     balance
                                      investment Investmen compreh              changes    dividends ment                                  ment
                             ment
                                                          t         ensive                  or profit provisi                             provisi
                                                                    income                                on                                on

I. Joint ventures

Anhui
Huapeng
             10,797,023.14            10,797,023.14                                                                                0.00
Textile
Co.,Ltd.

Shenzhen
Guanhua
Printing    127,906,165.17                            -263,356.48                                                        127,642,808.69

& Dyeing
Co., Ltd.

Subtotal    138,703,188.31            10,797,023.14 -263,356.48                                                          127,642,808.69

II. Associated enterprises
Shenzhen
              2,706,262.38                            136,047.34                                                           2,842,309.72
Changlian
Shenzhen Textile (Holdings) Co., Ltd.                                                          The Semi-Annual Financial Report 2021


fa
Printing
and
dyeing
Company
Jordan
Garnent
Factory
Yehui
Internatio
                  6,519,686.54                   -285,403.98             -4,045,320.86                            2,188,961.70
nal     Co.,
Ltd.

 Subtotal         9,225,948.92                   -149,356.64             -4,045,320.86                            5,031,271.42

Total           147,929,137.23     10,797,023.14 -412,713.12             -4,045,320.86                          132,674,080.11     0.00



(3)Other note

None

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
                                        36,457,754.34                3,657,570.58              25,667,881.46             3,003,017.42
Business
Other Business income                    1,688,908.01                1,688,908.01               1,302,040.74             1,302,040.74
               Total                    38,146,662.35                5,346,478.59              26,969,922.20             4,305,058.16

Income-related information:
                                                                                                                                 In RMB

               Type                Division 1                   Division 2                                            Total

Types of goods                          36,457,754.34                1,688,908.01                                       38,146,662.35

     Including

Property lease
                                        36,457,754.34                                                                   36,457,754.34
management and others

Electricity charges                                                  1,688,908.01                                        1,688,908.01

Area                                    38,146,662.35                                                                   38,146,662.35

     Including

Domestic                                38,146,662.35                                                                   38,146,662.35

Information related to performance obligations: None
Shenzhen Textile (Holdings) Co., Ltd.                                                The Semi-Annual Financial Report 2021


Information related to the transaction price apportioned to the residual performance obligation: None
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. Among them, RMB 0.00 is expected to be recognized as
revenue in 0 year, RMB 0.00 is expected to be recognized as revenue in 0 year, and RMB 0.00 is expected to be
recognized as revenue in 0 year.
Other note: None

5.Investment income

                                                                                                                       In RMB
                        Items                       Amount of current period               Amount of previous period

Long-term equity investment returns accounted for
                                                                    -412,713.12                                 -2,253,932.85
by equity method

Investment income from the disposal of long-term
                                                                      20,779.93                                    518,152.41
equity investment

Investment income of trading financial assets
                                                                   8,410,570.66                                 11,383,689.05
during the holding period

Dividend income earned during investment
                                                                   1,122,007.80                                  1,418,634.82
holdings in other equity instruments

Total                                                              9,140,645.27                                 11,066,543.43


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                                      -55.96

Government subsidy recognized in current
                                                                                   Other benefits of government subsidies
gain and loss(excluding those closely related
                                                                   8,764,569.01 that are confirmed related to the main
to the Company’s business and granted
                                                                                   business.
under the state’s policies)

Other non-business income and expenditures                                         It is mainly for carrying forward unpaid
                                                                  20,092,473.46
other than the above                                                               payables and insurance claims income.

Less :Influenced amount of income tax                               4,360,819.11

  Influenced amount of minor shareholders’                        9,707,621.90
Shenzhen Textile (Holdings) Co., Ltd.                                                  The Semi-Annual Financial Report 2021


equity (after tax)

Total                                                                  14,788,545.50                   --

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                                          2.74%                  0.1509                  0.1509
Company.

Net profit attributable to the
Common stock shareholders of
                                                                      2.21%                  0.1218                  0.1218
Company after deducting of
non-recurring gain/loss.


3. Differences between accounting data under domestic and overseas accounting standards

( 1 ) Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.

□ 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)Explanation of the reasons for the differences in accounting data under domestic and foreign accounting
standards. If the data that has been audited by an overseas audit institution is adjusted for differences, the
name of the overseas institution should be indicated

4.Other

None