Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Stock code: 000045,200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No. :2022-06
Summary of 2021 Annual Report of Shenzhen Textile
(Holdings) Co., Ltd.
I. Important notes
The summary is abstract from full-text of annual report, for more details information , investors should found in
the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed
by CSRC.
All the directors attended the board meeting for the review of this Report.
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √Not applicable
The Company has plan of Converting provident fund to share capital .
√Applicable □ Not applicable
The company’s common stock profit distribution plan approved by the board of directors this time is: based on
506,521,849 shares, a cash dividend of 0.5 yuan (tax included) will be distributed to all shareholders for every 10
shares, and 0 shares of bonus shares (tax included) will be given away. Increase share capital.
The profit distribution plan for preferred stocks for the reporting period passed by the board of directors
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Stock abbreviation Shen Textile A，Shen Textile B Stock code 000045，200045
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Office Address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Fax 0755-83776139 0755-83776139
Tel 0755-83776043 0755-83776043
E-mail jiangp@chinasthc.com lizy@chinasthc.com
2. Brief introduction to the main business or products in the reporting period
(1)Industry information of the Company during the reporting period
Polarizers are also known as polaroid, which can control the polarization direction of specific light beams.
When natural light passes through the polarizer, the light whose vibration direction is perpendicular to the
transmission axis of the polarizer will be absorbed, leaving only polarized light whose vibration direction is
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
parallel to the transmission axis of the polarizer. The downstream polarizer is mainly used in the panel industry.
According to different panel types, polarizers mainly include TN, STN, TFT and OLED. Currently, the global
polarizer market is dominated by polarizers for TFT-LCD panels. Each LCD panel requires two polarizers.
The Company is one of the major R&D, production and sales enterprises of polarizers in China, and the
leading enterprise of polarizer industry in China. The Company's polarizer is one of the key basic materials in the
display panel industry, and its demand is greatly affected by the fluctuation of the display panel market. In the first
half of 2021, due to the strong terminal demand and the shortage of upstream raw materials of various display
panels caused by telecommuting and distance learning, the display panel market showed a pattern of short supply,
the panel price continued to rise, and the polarizer market witnessed a good prosperity. In the second half of 2021,
with the increase of vaccination rate for COVID-19, the pandemic eased, the market demand gradually stabilized,
and the supply of raw materials gradually recovered, the display panel market ended its upward cycle, the prices
of different types of panels dropped successively, and the market demand for polarizers gradually stabilized.
(2)The company's main business
The company's main business covered such the high and new technology industry as represented by LCD
polarizer, its own property management business and the retained business of high-end textile and garment.
During the reporting period, the Company's main business has not changed significantly. First, the Company
focused on adjusting its marketing strategy, continuously promoting the optimization of customer and product
structure, balancing the sales share of major panel customers, and enhancing the anti-risk and profitability; Second,
it strengthened the production management, improved the production capacity and product quality, further speeded
up the elevator, carried out equipment and technical transformation, improved the automation level in the later stage,
and continuously improved the production capacity and product quality; Third, it controlled the cost and reduced the
cost through a number of measures, such as the import of alternative raw materials and the broadening of
procurement channels; Fourth, it continued to overcome the adverse effects of the COVID-19, and made every
effort to promote the project construction and ramp up of Line 7. The Line 7 project was put into production in
mid-July and entered the ramp up period, with a steady increase in yield and machine speed, laying a solid
foundation for the rapid increase of oversized orders in the whole year of 2022 and the realization of production line
profitability; Fifth, it built the R&D management system, strengthened the R&D efforts on new products, new
materials, production processes and other aspects, and introduced more alternative raw materials, among which, the
polarizer for OLED TV successfully achieved mass production, filling the domestic gap; Sixth, it effectively
revitalized the existing assets. The Company implemented the transfer liquidation work for some subsidiaries and
shareholding enterprises, and concentrated on developing the main business of polarizers; Seventh, it implemented
the epidemic prevention and control work, paid attention to safe and green production, focused on rectification,
safety and environmental protection issues, and promoted the safe and stable development of enterprises.
During the reporting period, the Company achieved operating income of RMB 2.294 billion, with a year-on-year
increase of 8.76%; Realized a total profit of RMB 86.23 million with a year-on-year increase of 66.79%; And
achieved a net profit attributable to shareholders of listed companies of RMB 61.16 million, with a year-on-year
increase of 64.12%. During the reporting period, the net profit attributable to shareholders of listed companies
increased significantly compared with the same period of last year. The main reasons are as follows: First, in 2021,
the polarizer market was generally stable and improved, the Company further optimized the order structure, and the
average gross profit margin increased steadily; Second, in order to cope with the COVID-19 in 2020 and support the
enterprises to overcome the difficulties together, the Company actively responded to the call of Shenzhen Municipal
Party Committee, Municipal Government and State-owned Assets Supervision and Administration Commission to
reduce the rent for some tenants in February, March and November 2020, and the rent income of such period
increased substantially year on year.
(3)The Company's main products made in each polarizer production line and their application are as follows:
Currently, the Company has 7 mass production lines for polarizers, covering TN, STN, TFT, OLED, 3D, dye sheet,
optical film for touch screen and other fields, mainly used in TV, NB, navigator, Monitor, vehicle, industrial control,
instruments, smart phones, wearable devices, 3D glasses, sunglasses and other products，the company has become
a mainstream panel company such as Huaxing Optoelectronics, BOE, Sharp, LGD, Shenzhen Tianma, Huike, etc.
by continuously strengthening sales channel expansion and building its own brand. Qualified suppliers.
The Company's main products made in each polarizer production line and their application are as follows:
Line Place Product breadth Planned capacity Main products
Line 1 Pingshan 500mm 600,000 m2 TN/STN/ dye film
Line 2 Pingshan 500mm 1.2 million m2 TN/STN/CSTN
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Line 3 Pingshan 650mm 1 million m2 TFT
Line 4 Pingshan 1490mm 6 million m2 TFT
Line 5 Pingshan 650mm 2 million m2 TFT
Line 6 Pingshan 1490mm 10 million m2 TFT/OLED
2
Line 7 Pingshan 2500mm 32 million m TFT/OLED
(4)Company's business model
The polarizer industry has gradually shifted from a traditional business model of R&D, production, and sales to a
customer-centric, joint research and development, and comprehensive service business model. By understanding
customer needs, joint research and develop, manage high-standard production, manufacture high-quality products,
use advanced polarizer roll and attaching equipment to cooperate with downstream panel manufacturers'
production lines, reduce production links, reduce production and transportation costs, and create value for
customers, win-wins.
(5)Major factors for driving the Company's performance
Refer to "III. Analysis on core competitiveness" in 2021 Annual Report for details..
(6)Market position of company products
Currently, the Company is one of the major R&D, production and sales enterprises of polarizers in China, and is
the leading enterprise in the domestic polarizer industry. The Company mainly focuses on medium and large-sized
polarizer products, and meanwhile has the production capacity of multi-size and multi-series products.
In the future, the Company will further adjust and optimize the product structure and customer structure, improve
the internal management level, optimize and upgrade the production technology level, improve the production
efficiency and product quality, broaden the procurement channels, reduce the production cost and consolidate and
improve the market competitiveness.
3.Major accounting data and financial indicators
(1)Major accounting data and financial indicators for the last three years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √No
In RMB
Changed over last
End of 2021 End of 2020 End of 2019
year（％）
Gross assets（Yuan） 5,496,647,107.83 4,969,547,552.23 10.61% 4,531,399,885.99
Net assets attributable to shareholders of
2,816,795,889.89 2,766,234,174.39 1.83% 2,727,764,144.36
the listed company（Yuan）
Changes of this
period over same
2021 2020 2019
period of Last
year(%)
Operating income（Yuan） 2,293,747,892.06 2,108,964,687.80 8.76% 2,158,184,855.71
Net profit attributable to the shareholders
61,162,384.25 37,267,995.74 64.12% 19,679,910.43
of the listed company（Yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 40,650,013.22 18,084,607.04 124.78% -41,179,849.56
listed company（Yuan）
Cash flow generated by business operation,
-4,436,980.35 1,930,932.76 -329.78% 383,145,788.50
net（Yuan）
Basic earning per share(Yuan/Share) 0.12 0.07 71.43% 0.04
Diluted gains per share(Yuan/Share) 0.12 0.07 71.43% 0.04
Weighted average ROE(%) 2.19% 1.36% 0.83% 0.75%
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2)Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 552,950,209.39 548,586,197.99 570,752,050.04 621,459,434.64
Net profit attributable to the
42,776,335.85 33,826,738.54 4,921,591.39 -20,362,281.53
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
39,905,925.26 21,908,603.63 815,872.77 -21,980,388.44
to the shareholders of listed
company
Net Cash flow generated by
-75,288,004.27 22,644,468.02 -14,976,407.55 63,182,963.45
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
4.Share capital and shareholders
(1)Number of holders of ordinary shares and preference shares with restored voting right and Top 10 shareholders
In shares
Total number Total Total
of common The total number
shareholders at preferred sharehold
shareholders at of preferred shar
the end of the ers at the end of the
the end of the 25,021 24,982 eholders voting ri 0 0
month from the month from the date
ghts restored at p
reporting date of disclosing of disclosing the
eriod-end(if any)
period the annual report annual report(if any)
Shareholdings of top 10 shareholders
Proportion Number of Amount of Number of share
Shareholders Nature of shareholder of shares shares held at restricted shares pledged/frozen
held(%) period -end held State of share Amount
Shenzhen Investment
State-owned legal person 46.21% 234,069,436
Holdings Co., Ltd.
Shenzhen Shenchao State-owned
Technology 3.18% 16,129,032
Investment Co., Ltd. Legal person
Sun Huiming Domestic Nature person 1.19% 6,008,653
Deng Yan Domestic Nature person 0.99% 4,993,800
Su Weipeng Domestic Nature person 0.56% 2,823,066 Pledge 2,800,000
Mao Yuxia Domestic Nature person 0.55% 2,792,400
China Construction
Bank -Cinda Australia
Bank New Energy
Other 0.49% 2,477,720
Industry Equity
Securities Investment
Fund
Qi Jianhong Domestic Nature person 0.44% 2,218,800
Li Zengmao Domestic Nature person 0.41% 2,082,997
Zhang Muxiu Domestic Nature person 0.36% 1,808,800
Among the top 10 common shareholders, Shenzhen Investment Holdings Co.,
Ltd. and Shenzhen Shenchao Technology Investment Co., Ltd. do not constitute
a concerted party relationship. In addition, the company does not know whether
Related or acting-in-concert parties among there is an associated relationship among the top 10 ordinary shareholders, and
shareholders above between the top 10 ordinary shareholders and the top 10 shareholders, or
whether they are persons taking concerted action defined in Regulations on
Disclosure of Information about Shareholding of Shareholders of Listed
Company.
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Explanation on shareholders participating in the
None
margin trading business(if any )
(2)Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √Not applicable
No preference shareholders in the reporting period
(3)Relationship between the Company and its actual controller in the form of diagram
5. Corporation bonds
□ Applicable √Not applicable
III. Significant events
1. Progress of polarizer industrialization project for ultra-large TV (Line 7)
During the reporting period, the Company strengthened staffing and resource support, overcame the adverse
effects caused by the pandemic, accelerated the progress of chemical test run of Line 7 project, and finally
completed the performance stability test run and started trial production ramp up in July 2021. As of December 31,
2021, Line 7 was in the stage of capacity ramp up, the main technical indicators such as speed and yield were
continuously improved, and the introduction of major customer products was progressing steadily, laying a solid
foundation for the rapid increase of oversized orders in 2022 and the realization of production line profitability.
On March 16, 2021, all the funds raised from the special account for raising funds of Line 7 project have been
used up according to regulations, and the company has canceled the special account for raising funds. For details,
please refer to Announcement No.:2021-30 of cninfo (http://www.cninfo.com.cn).
As of December 31, 2021, the accumulated signed contract amount of Line 7 project was RMB 2,091.2441
million, and the actual payment was RMB 2,017.5184 million (with raised funds of RMB 409.9535 million, and
its own funds and government funds of RMB 1,607.5649 million).
2. Regarding the investment in the construction of the RTS rear cutting production line
During the reporting period, the company added investment in the construction of a cutting production line for
the rear end of the RTS after careful evaluation. The total investment was controlled at 30 million yuan, and the
source of funds was its own funds and bank loans. The main reasons for this investment: First, to meet the needs
of downstream panel customers, increase the depth of customer cooperation, and seize the market share of
high-margin large-size products; second, to improve the overall cutting capacity of the back end; third, to simplify
the production process and improve production efficiency. reduce manufacturing cost.
As of December 31, 2021, The Company is building 2 RTP production lines, one of which has been put into mass
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
production, and the other one is subject to mass production ramp-up; 2 RTS production lines have been built，and 1
RTS production line is under construction. It is expected to achieve mass production before the first quarter of
2022.
3.Matters concerning the company's compensation for arbitration and its subsidiaries' annual performance
commitments in 2019
On March 9, 2020, the company received the Notice of Arbitration (No.452 -2) from Shenzhen International
Arbitration Court and the Application for Arbitration submitted by Hangzhou Jinjiang Group Co., Ltd., which is
the applicant of this arbitration while the company is the respondent. Hangzhou Jinjiang Group Co., Ltd.
submitted the following arbitration requests: 1. The ruling made the following changes to the Cooperation
Agreement: (1) Delete the original Article 3.1 of the Cooperation Agreement and the relevant unfulfilled rights
and obligations will no longer be fulfilled (2) Delete the original Article 6.4 of the Cooperation Agreement, and
the relevant unfulfilled rights and obligations will no longer be fulfilled; 2. The respondent shall bear the
arbitration fee of the case and the actual expenses of the arbitral tribunal. The applicant reserves the right to
further modify the arbitration request. For details, please refer to the Announcement of 2020-07 on the website of
http://www.cninfo.com.cn.
On March 26, 2020, the company received the Notice on Extending the Time Limit Appointed by Arbitrators
(2020 SGZS No.452 -3) delivered by Shenzhen International Arbitration Court. Due to the complexity of the
dispute and the special epidemic background, the applicant needs extra time to negotiate and communicate the
procedural matters of the case with the respondent, so it applies to Shenzhen International Arbitration Court to
extend the time limit for appointing arbitrators in this case. Shenzhen International Arbitration Court believes that
the applicant's request is reasonable, and both parties are requested to notify Shenzhen International Arbitration
Court in writing of the arbitrator's appointment result before March 30, 2020. Therefore, the company shall
appoint an arbitrator before March 30, 2020 instead of within 15 days after receiving the arbitration notice on
March 9, 2020, and notify the Shenzhen International Arbitration Court of the results in writing. For details,
please refer to the Announcement of 2020-21 on the website of http://www.cninfo.com.cn.
On April 17, 2020, the company received the Notice of Arbitral Tribunal Composition (2020 SGZS No.452-4)
from Shenzhen International Arbitration Court. Both parties to the arbitration informed Shenzhen International
Arbitration Court in writing of the results of arbitrator selection according to the arbitration procedure before
March 30, 2020, and appointed 1 arbitrator respectively and 1 chief arbitrator together. On April 16, 2020, the
arbitration tribunal was formed to hear the case.
On December 1, 2020, the arbitration case was heard in the Seventh Arbitration Tribunal of the Court of
Arbitration located at the Shenzhen Stock Exchange.
On March 25, 2021, the company received the Award (2020 SGZC No.452) delivered by the arbitral tribunal,
and made a ruling on this case: 1. The applicant was exempted from fulfilling the 2019 annual performance
compensation obligation stipulated in Article 3.1 of the Cooperation Agreement, and does not need to pay SAPO
Photoelectric the compensation for the difference in performance in 2019 of RMB 244,783,800; 2. The arbitration
fee of RMB 2,682,011 and the actual expenses of the arbitrator of RMB 8,000 shall be borne by the applicant; 3.
The applicant's other arbitration requests are not supported. This award is final and shall come into force as of the
date of its making. This arbitration is the final award, and the award result will not affect the company's profit and
loss, nor will it affect the production and operation of SAPO Photoelectric. The company and Jinjiang Group will
continue to actively perform their shareholders' duties based on the principle of mutual benefit and win-win, and
effectively improve the production technology, management level and profitability of SAPO Photoelectric. For
details, please refer to the Announcement on Arbitration Results of the Company on Juchao Information Network
(http://www.cninfo.com.cn) (No.2021-29).
4.Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary SAPO Photoelectric signed the Changxing
Junying Equity Investment Partnership (Limited Partnership) Agreement with the fund manager Huizhi
Investment Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners, and
co-sponsored the establishment of an industrial fund, focusing on the optical film industry chain related projects
related to the company's main business, with a fund size of 50 million yuan. SAPO Photoelectric, as one of the
limited partners of the industrial fund, subscribed for a capital contribution of 28.5 million yuan.For details Juchao
Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial and
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
commercial registration and completed the private equity investment fund registration on February 8, 2018. For
details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).
As of December 31, 2021, Changxing Junying had accumulated 3 investment projects with a total investment of
42 million yuan.
Fund contribution
No Name Investment
（RMB 10,000）
1 Shenzhen Kaichuang Shijia Technology Co., Ltd. Optical Film 1,400
2 Shenzhen Shenfuyu Electronic Technology Co., Ltd. Optical Film 1,300
3 Shenzhen Hengbaoshun Technology Development Co., Ltd. Optical Film 1,500
5, Matters concerning the subsidiary's accreditation by Guangdong Engineering Technology Research Center
On August 20, 2021, the Guangdong Provincial Department of Science and Technology issued the "Notice of
the Guangdong Provincial Department of Science and Technology on Recognizing the 2021 Guangdong
Engineering Technology Research Center" (Yue Ke Han San Zi [2021] No. 1021), according to the results of
expert review , the "Guangdong Province Shengbo Optoelectronics Engineering Technology Research Center in
the Field of New Materials" built by the company's holding subsidiary Shengbo Optoelectronics was identified as
the "2021 Guangdong Engineering Technology Research Center".
This recognition fully affirms the company's strong technological innovation and R&D strength, demonstrates
the company's significant advantages in technological innovation, technology research and development and talent
teams in the field of polarizers, and helps the company to continuously improve the level of scientific research and
scientific and technological achievements. The ability to transform and enhance the company's market competitive
advantage is the embodiment of the company's comprehensive strength. The company will continue to build the
research center, combine the company's business strategy, deepen industry-university-research cooperation,
cultivate scientific and technological innovation talents, vigorously promote technological innovation, and provide
a favorable platform support for promoting the high-quality development of the polarizer business.
6.Matters on the listing and leasing of some properties in Block C of Shenzhen Textile Building
On July 13, 2021, the company held the fifth meeting of the eighth board of directors to review and approve the
Proposal on Listing and Leasing Some Properties in Block C of Shenzhen Textile Building, and agreed that the
company will publicly list and lease 6,100 square meters of properties of the 8F-10F and 1F lobby of Block C of
Shenzhen Textile Building through Shenzhen United Property and Share Rights Co., Ltd., with a lease term of 10
years (including a rent-free period of 6 months), and the rental price is not lower than 85 yuan/㎡/month
(including property management fee). The rent will increase by 5% every three years from the date of contract
conclusion, and the final transaction price will be determined according to the listing result. For details, please
refer to the Announcement of Resolutions of the Fifth Meeting of the Eighth Board of Directors of the company
(No.2021-44) on Juchao Information Network (http://www.cninfo.com.cn).
On September 18, 2021, the Company received the Notice of Lease Result from Shenzhen United Property and
Equity Exchange Co., Ltd., confirming that the lessee was Shenzhen Haizhiguang Hotel Management LTD, with a
lease term of 10 years (including 6 months rent-free period), at a transaction price of 86 yuan/m2/month
(including property management fee), and the rent will increase by 5% every three years since the signing of the
contract; On September 17, 2021, the Company signed the contract with the lessee, and the follow-up leased
property was planned to be used for the operation of Atour Hotel.
Regarding partial premises in Block C of Shenzhen Textile Building for lease this time, it will transfer the
market risk from self-operated hotels to brand hotel operators through overall external lease, which will help
improve the overall operational efficiency of the Company's assets, reduce operational risks, bring stable rental
income to the Company and help to maintain and increase the value of state-owned assets.
7. Matters on liquidation and cancellation of Shenzhen Textile Import & Export Co., Ltd.
On July 13, 2021, the company held the fifth meeting of the eighth board of directors to review and approve the
Proposal on Liquidation and Cancellation of Shenzhen Textile Import & Export Co., Ltd., and agreed on the
Liquidation Report of Shenzhen Textile Import & Export Co., Ltd.. completed by the liquidation group, and
liquidated and distributed its assets in accordance with legal procedures, and completed formalities such as
industrial and commercial cancellation. The liquidation and cancellation of Shenzhen Textile Import & Export Co.,
Ltd. (hereinafter referred to as "Shenzhen Textile Import & Export") will change the scope of the company's
consolidated financial statements, facilitate the disposal of inefficient assets, reduce management costs, and will
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
not affect the company's production and operation. The impact of the cancellation of Shenzhen Textile Import &
Export in this liquidation on the current profits and losses is estimated to be RMB 7.64 million, The annual audit
of the audit institution has been confirmed. For details, please refer to the Announcement on Liquidation and
Cancellation of Shenzhen Textile Import & Export. (No.2021-45) issued by Juchao Information Network
(http://www.cninfo.com.cn).
8. Matters on waiver of preemption right and equity transfer of holding subsidiaries
On November 27, 2020, the company received the "Letter" sent by Jinjiang Group, informing the company in
writing that it intends to acquire the 40% equity of SAPO Photoelectric held by Hangzhou Jinhang Equity
Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Jinhang Investment"); On
December 21, 2020, the company received the Notice of Equity Transfer from Jinhang Investment, informing the
company in writing that Jinhang Investment intends to transfer its 40% equity of SAPO Photoelectric, and
according to the Company Law of the People's Republic of China and the Articles of Association of Shenzhen
SAPO Photoelectric Technology Co., Ltd., it specially sought the company's opinions on the transfer matters.
On December 25, 2020, after research and decision-making, the company formally replied to Jinhang
Investment, and the company gave up the preemptive right to exercise the 40% equity of SAPO Photoelectric, the
holding subsidiary of the company held by Jinhang Investment. For details, please refer to the Announcement on
Waiver of Preemptive Rights of Holding Subsidiaries (No.2020-57) on Juchao Information Network
(http://www.cninfo.com.cn) on December 26, 2020.
In July 2021, the company received the Letter from Jinjiang Group, informing the company about the progress
of the above-mentioned equity transfer: Jinhang Investment and the intended transferee Suzhou Advantage Ford
Investment Center (Limited Partnership) (hereinafter referred to as "Advantage Ford") have completed their
internal decision-making examination and approval, and the delivery conditions for Advantage Ford to accept
100% of the partnership share of Jinhang Investment have been met, and both parties will promote the transfer of
the partnership share. 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, the shareholders and equity ratio of SAPO Photoelectric, the holding subsidiary of the
company, remain unchanged, and the scope of the consolidated statements of the company has not changed.
Advantage Ford holds 40% equity of SAPO Photoelectric through Jinhang Investment, and the strategic investor
of SAPO Photoelectric will be changed from Jinjiang Group to Advantage Ford. Advantage Ford has rich
industrial resources, industrial investment and management experience, and both parties will give full play to their
respective advantages to further improve and strengthen the main business of polarizer. For details, please refer to
the Progress Announcement on Waiver of Preemptive Rights and Equity Transfer of Holding Subsidiaries
(No.2021-47) on Juchao Information Network (http://www.cninfo.com.cn).
9. The disposal of assets of the joint venture company Xieli Automobilemobile Co., Ltd.
Shenzhen Xieli Automobilemobile Enterprise Co., Ltd. (hereinafter referred to as "Shenzhen Xieli") is a
Sino-foreign joint venture invested and established by the company and Hong Kong Xieli Maintenance Company
in 1981, with a registered capital of 3.12 million yuan, and the company holds 50% of the equity. The company's
operating period ended in 2008, and its business license was revoked in 2014. The company's main asset is real
estate. The industrial and commercial license of Shenzhen Xieli was cancelled in March 2020, but there are still
three properties under its name, the disposal of which is required to be resolved after further consultation between
the shareholders of both parties.
On July 26, 2021, the Company filed a lawsuit with Yantian District People's Court in Shenzhen City, Guangdong
Province to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co., Ltd. approved by
Shenzhen Administration for Market Regulation on March 9, 2020, on which the court gave a judgment on
November 21, 2021 to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co., Ltd. approved
by Shenzhen Administration for Market Regulation.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
March 17, 2022
Summary of 2020 Annual Report of Shenzhen Textile (Holdings) Co., Ltd.
