Shenzhen Textile (Holdings) Co., Ltd.
Auditor’s Report
Grant Thornton International Ltd（Special General Partnership）
Table of contents
Auditor’ s Report 1-4
Consolidated and Company Balance sheet 5-11
Consolidated and company Income statement 12-14
Consolidated and company Cash flow statement 15-19
Consolidated and company Statement on Change
20-24
in Owners’Equity
Notes to financial statements 25-134
Grant Thornton International Ltd（Special General
Partnership）
5/F, Scitech Plaza, 22 Jianguomenwai Street,
Chaoyang District, Beijing
Zip Code:100044
Tel：86-10 8566 5588
Fax：86-10085665120
www.grantthornton.cn
Auditor’ s Report
Zhi Tong Shen Zi（2022）No.441A002000
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd：
I. Opinion
We have audited the financial statements of Shenzhen Textile (Holdings) Co., Ltd . (hereinafter
referred to as "the Company"), which comprise the balance sheet as at December 31, 2021, and the
income statement, the statement of cash flows and the statement of changes in owners' equity for the
year then ended and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance
with Accounting Standards for Business Enterprises and present fairly the financial position of the
Company as at December 31, 2021 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants
in China. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. According to the
Code of Ethics for Chinese CPA, we are independent of the Company in accordance with the Code
of Ethics for Chinese CPA and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
(1) Recognition of revenue
Please refer to Note V, 26 and Note VII, 42 to the financial statement for details of the relevant
information disclosure.
1.Description of matters
The operating income of Shenzhen Textile in 2021 was RMB 2,293.7479 million, of which the
main business income was RMB 2,265.9906 million, accounting for 98.79%. As revenue is one of
the key performance indicators of Shenzhen Textile, there is inherent risk that the Company's
management manipulates revenue recognition in order to achieve specific goals or expectations, and
since the main business income is large, we identify revenue recognition as a key audit item.
2. Response to the audit
For revenue recognition, we mainly implemented the following audit procedures:
1
(1) Understand, evaluate and test the design effectiveness and operation effectiveness of internal
control related to sales revenue cycle;
(2) Obtain the main sales contracts according to the products and business types, check the relevant
clauses related to revenue recognition, and interview the management to evaluate whether the
revenue recognition meets the requirements of accounting standards;
(3) Implement analytical procedures, compare the changes of income between this year and last year
according to product types, observe the fluctuations of income between months and the changes of
important customers in this period, and analyze the rationality of income changes based on factors
such as the company's production capacity, market expansion and industry trends;
(4) Perform detailed tests to check whether the basis related to sales revenue recognition is sufficient,
including checking sales contracts or performing detailed tests, including checking sales contracts or
orders, delivery orders, customs declarations and other supporting documents, evaluate the
authenticity and accuracy of revenue recognition, and evaluate the authenticity and accuracy of
revenue recognition;
(5) Perform cut-off test to evaluate whether income is recorded in the proper accounting period;
(6) Select samples from major customers on this recognition procedures, and perform alternative
tests on the non-replied parts to judge the authenticity of sales revenue.
(2) Inventory falling price reserves
Please refer to Note V, 12 and Note VII, 8 to the financial statement for details of the relevant
information disclosure.
1.Description of matters
As of December 31, 2021, the balance of inventory depreciation reserve of Shenzhen Textile is
RMB 98.0359 million. As the inventory depreciation reserve and its changes have a significant
influence on the financial statements, the determination of the net realizable value of inventory
involves the major judgment and estimation of the management, so we identify the inventory
depreciation reserve as a key audit item.
2. Response to the audit
The audit process implemented for inventory falling price reserves includes mainly:
(1) Understand, evaluate and test the design and operation effectiveness of internal control related to
inventory depreciation reserve;
(2) Understand and evaluate the appropriateness of the Company's accrual policy for inventory
depreciation reserve;
(3) Understand and inquire about inventory storage location and inventory accounting method, and
determine the scope of inventory supervision; Implement inventory supervision procedures to check
whether the inventory is damaged, obsolete, outdated, defective, etc.;
(4) Obtain the inventory year-end inventory age list, and carry out analytical review of inventory age
according to the status of products to analyze whether the inventory depreciation reserve is
reasonable;
(5) Review and evaluate the rationality of the major estimates made by the management when
determining the net realizable value;
(6) Obtain the calculation table of inventory depreciation reserve, check whether the accrual of
inventory depreciation reserve is implemented according to relevant accounting policies, and
recalculate the inventory depreciation reserve; Check the changes of inventory depreciation accrued
in previous years, evaluate the rationality of estimated selling price and estimated related taxes and
fees as key parameters of net realizable value, review the sufficiency of basis of estimated selling
price, and analyze the rationality of inventory depreciation reserve.
IV. Other information
2
The management of the Company is responsible for the other information. The other information
comprises information of the Company's annual report in 2021, but excludes the financial statements
and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date
of this auditor's report, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Company's management is responsible for preparing the financial statements in accordance with
the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation,
and for designing, implementing and maintaining internal control that is necessary to ensure that the
financial statements are free from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the
Company's ability to continue as a going concern, disclosing matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting
process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the audit standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, omissions, misrepresentations, or the override of internal
control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of
the Company, and conclude, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
3
draw attention in our auditor's report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements and bear all
liability for the opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit matters, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Grant Thornton Chinese C.P.A.：
International Ltd.(Special Project Partner
General Partnership ）
Chinese C.P.A.：
Beijing China
March 15,2022
4
Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. In RMB
Items December 31,2021 December 31,2020
Current asset：
Monetary fund 302,472,828.60 279,087,236.95
Settlement provision
Outgoing call loan
Transactional financial assets 586,540,735.16 684,617,260.06
Derivative financial assets
Note receivable 149,942,880.28 16,813,657.28
Account receivable 479,998,708.57 547,310,217.90
Financing of receivables 21,474,101.07 102,051,314.08
Prepayments 15,406,619.53 16,902,516.39
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 140,185,750.40 5,265,002.71
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 667,461,447.03 480,847,581.44
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 29,503,352.42 77,482,083.47
Total of current assets 2,392,986,423.06 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 133,022,325.77 147,929,137.23
Other equity instruments investment 186,033,829.72 190,607,427.54
Other non-current financial assets 30,650,943.40 30,650,943.40
Real estate investment 106,217,779.76 110,572,471.92
Fixed assets 2,424,741,252.86 790,183,905.38
Construction in progress 71,482,031.08 1,301,750,141.12
Production physical assets
Oil & gas assets
Use right assets 9,221,189.37
Intangible assets 48,635,160.00 36,048,978.91
Development expenses
Goodwill
Long-germ expenses to be amortized 5,387,295.94 2,876,561.53
Deferred income tax asset 3,708,596.78 5,243,425.26
Other non-current asset 84,560,280.09 143,307,689.66
5
Total of non-current assets 3,103,660,684.77 2,759,170,681.95
Total of assets 5,496,647,107.83 4,969,547,552.23
Current liabilities
Short-term loans 37,575,113.83
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 16,682,324.12
Account payable 283,643,842.23 329,468,601.90
Advance receipts 1,805,311.57 3,542,394.33
Contract liabilities 68,955.21 279,631.27
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 59,719,860.24 55,642,549.53
Tax payable 9,200,627.09 12,198,522.02
Other account payable 201,317,421.35 156,118,440.42
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 5,175,393.52
Other current liability 27,523,903.58
Total of current liability 642,712,752.74 557,250,139.47
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 683,016,243.25 343,100,174.35
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 4,243,855.71
Long-term payable
Long-term remuneration payable to staff
Expected liabilities 30,741,055.00
Deferred income 110,461,293.15 110,740,322.21
Deferred income tax liability 61,642,660.91 59,141,666.58
Other non-current liabilities
Total non-current liabilities 890,105,108.02 512,982,163.14
Total of liability 1,532,817,860.76 1,070,232,302.61
Owners’ equity
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 119,682,119.05 116,605,932.42
Special reserve
6
Surplus reserves 98,245,845.47 94,954,652.14
Common risk provision
Retained profit 130,746,251.74 86,912,390.50
Total of owner’s equity belong to the parent
2,816,795,889.89 2,766,234,174.39
company
Minority shareholders’ equity 1,147,033,357.18 1,133,081,075.23
Total of owners’ equity 3,963,829,247.07 3,899,315,249.62
Total of liabilities and owners’ equity 5,496,647,107.83 4,969,547,552.23
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Parent Company Balance Sheet
In RMB
Items December 31,2021 December 31,2020
Current asset：
Monetary fund 130,270,313.58 113,560,327.21
Transactional financial assets 586,540,735.16 514,277,000.82
Derivative financial assets
Note receivable
Account receivable 7,935,911.24 1,461,400.20
Financing of receivables
Prepayments 18,706.17
Other account receivable 14,383,631.68 7,450,934.40
Including：Interest receivable
Dividend receivable
Inventories 39,131.60 8,808.00
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 739,169,723.26 636,777,176.80
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2,089,070,531.86 2,103,977,343.32
Other equity instruments investment 169,974,388.84 177,142,433.45
Other non-current financial assets
Real estate investment 98,174,132.57 101,644,481.93
Fixed assets 20,255,108.56 21,876,099.34
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 454,036.00 492,923.62
Development expenses
Goodwill
7
Long-germ expenses to be amortized
Deferred income tax asset 3,672,545.57 5,097,360.00
Other non-current asset 55,790,497.23 96,871,196.43
Total of non-current assets 2,437,391,240.63 2,507,101,838.09
Total of assets 3,176,560,963.89 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
Advance receipts 639,024.58 2,875,936.58
Contract liabilities
Employees’ wage payable 16,712,946.96 14,824,723.81
Tax payable 1,943,470.48 11,497,591.21
Other account payable 116,648,650.39 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 136,355,835.98 124,633,373.29
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 400,000.00 500,000.00
Deferred income tax liability 58,002,800.69 56,150,418.06
Other non-current liabilities
Total non-current liabilities 58,402,800.69 56,650,418.06
Total of liability 194,758,636.67 181,283,791.35
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 108,762,538.39 107,632,186.85
Special reserve
Surplus reserves 98,245,845.47 94,954,652.14
Retained profit 690,879,118.40 676,454,033.89
Total of owners’ equity 2,981,802,327.22 2,962,595,223.54
Total of liabilities and owners’ equity 3,176,560,963.89 3,143,879,014.89
8
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Consolidated Income statement
In RMB
Items Year 2021 Year 2020
I. Income from the key business 2,293,747,892.06 2,108,964,687.80
Incl：Business income 2,293,747,892.06 2,108,964,687.80
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,182,483,548.35 2,030,833,538.40
Incl：Business cost 1,908,519,413.28 1,814,298,395.02
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 10,523,548.09 7,347,125.65
Sales expense 37,973,336.39 28,644,230.87
Administrative expense 122,088,830.15 105,094,934.36
R & D costs 103,508,764.53 67,160,964.22
Financial expenses -130,344.09 8,287,888.28
Including：Interest expense 14,306,275.13 234,815.67
Interest income 1,655,853.59 3,702,735.59
Add: Other income 19,643,379.33 29,506,252.69
Investment gain（“-”for loss） 22,663,013.06 22,599,670.74
Incl: investment gains from affiliates 33,984.66 -3,446,613.86
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 2,150,943.40 2,687,518.74
Credit impairment loss -4,981,560.53 -10,394,533.65
Impairment loss of assets -83,508,720.33 -72,412,477.63
Assets disposal income -597,458.77 276,544.73
III. Operational profit（“-”for loss） 66,633,939.87 50,394,125.02
Add ：Non-operational income 21,285,786.64 1,445,662.38
Less: Non-operating expense 1,686,263.35 138,421.27
IV. Total profit(“-”for loss) 86,233,463.16 51,701,366.13
Less：Income tax expenses 11,118,796.96 8,203,720.98
V. Net profit 75,114,666.20 43,497,645.15
(I) Classification by business continuity
1.Net continuing operating profit 75,114,666.20 43,497,645.15
2.Termination of operating net profit
9
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 61,162,384.25 37,267,995.74
2.Minority shareholders’ equity 13,952,281.95 6,229,649.41
VI. Net after-tax of other comprehensive income 3,076,186.63 -3,131,850.89
Net of profit of other comprehensive income attributable to owners of t
3,076,186.63 -3,131,850.89
he parent company.
（I）Other comprehensive income items that will not be reclassified
3,275,250.36 -2,815,824.67
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or ne
t assets
2.Other comprehensive income under the equity method investee can n
ot be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 3,275,250.36 -2,815,824.67
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or l
-199,063.73 -316,026.22
oss.
1.Other comprehensive income under the equity method investee can b
e 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 -199,063.73 -316,026.22
7.Other
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 78,190,852.83 40,365,794.26
Total comprehensive income attributable to the owner of the parent
64,238,570.88 34,136,144.85
company
Total comprehensive income attributable minority shareholders 13,952,281.95 6,229,649.41
VIII. Earnings per share
（I）Basic earnings per share 0.12 0.07
(II)Diluted earnings per share 0.12 0.07
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Income statement of the Parent Company
In RMB
Items Year 2021 Year 2020
I. Income from the key business 78,159,686.19 61,296,888.21
Incl：Business cost 11,547,944.88 10,666,274.44
Business tax and surcharge 2,968,080.87 2,435,257.11
Sales expense 49,682.40
Administrative expense 45,821,418.49 38,680,586.21
R & D expense
Financial expenses 283,692.12 -1,020,628.37
10
Including：Interest expenses 645,507.87 13,780.96
Interest income 359,182.13 1,012,329.64
Add：Other income 602,709.52 117,006.72
Investment gain（“-”for loss） 20,409,098.48 35,656,479.65
Including: investment gains from affiliates 33,984.66 -3,446,613.86
Financial assets measured at amortized cost cease to be recognized as
income
Net exposure hedging income
Changing income of fair value 392,767.12
Credit impairment loss -710,513.74 -799,858.92
Impairment loss of assets -32,769.22 -95,343.40
Assets disposal income -386,933.41 286,963.56
II. Operational profit（“-”for loss） 37,370,459.06 46,093,413.55
Add ：Non-operational income 283,354.84 562,910.99
Less：Non -operational expenses 27,244.40
III. Total profit(“-”for loss) 37,653,813.90 46,629,080.14
Less：Income tax expenses 5,900,206.38 7,746,152.13
IV. Net profit 31,753,607.52 38,882,928.01
1.Net continuing operating profit
2.Termination of operating net profit 31,753,607.52 38,882,928.01
V. Net after-tax of other comprehensive income 1,130,351.54 -3,131,850.89
（I）Other comprehensive income items that will not be reclassified into
1,329,415.27 -2,815,824.67
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net ass
ets
2.Other comprehensive income under the equity method investee can not b
e reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments 1,329,415.27 -2,815,824.67
4. Changes in the fair value of the company’s credit risks
5.Other
-199,063.73 -316,026.22
(II)Other comprehensive income that will be reclassified into profit or loss
1.Other comprehensive income under the equity method investee can be rec
lassified 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 -199,063.73 -316,026.22
7.Other
VI. Total comprehensive income 32,883,959.06 35,751,077.12
VII. Earnings per share
（I）Basic earnings per share 0 0
(II)Diluted earnings per share 0 0
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
11
Consolidated Cash flow statement
In RMB
Items Year 2021 Year 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,335,256,168.54 1,827,292,276.43
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 9,423,408.29 116,428,895.93
Other cash received from business operation 88,625,329.53 123,408,000.43
Sub-total of cash inflow 2,433,304,906.36 2,067,129,172.79
Cash paid for purchasing of merchandise and services 1,860,349,920.78 1,742,576,211.51
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 250,216,599.00 181,692,353.93
Taxes paid 101,786,653.96 43,712,017.07
Other cash paid for business activities 225,388,712.97 97,217,657.52
Sub-total of cash outflow from business activities 2,437,741,886.71 2,065,198,240.03
Net cash generated from /used in operating activities -4,436,980.35 1,930,932.76
II. Cash flow generated by investing
Cash received from investment retrieving 10,817,803.07 6,437,640.00
Cash received as investment gains 14,881,941.03 2,908,856.94
Net cash retrieved from disposal of fixed assets, intangible assets, and
83,520.00 2,800,914.39
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 1,128,309,484.61 3,240,861,003.37
Sub-total of cash inflow due to investment activities 1,154,092,748.71 3,253,008,414.70
Cash paid for construction of fixed assets, intangible assets and other
447,622,193.08 564,014,103.94
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 965,000,000.00 3,008,065,275.20
Sub-total of cash outflow due to investment activities 1,412,622,193.08 3,572,079,379.14
Net cash flow generated by investment -258,529,444.37 -319,070,964.44
III.Cash flow generated by financing
Cash received as investment
12
Including: Cash received as investment from minor shareholders
Cash received as loans 339,219,000.00 342,660,000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 339,219,000.00 342,660,000.00
Cash to repay debts
Cash paid as dividend, profit, or interests 38,306,691.13 3,511,622.58
Including: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 12,638,273.00 9,344,136.30
Sub-total of cash outflow due to financing activities 50,944,964.13 12,855,758.88
Net cash flow generated by financing 288,274,035.87 329,804,241.12
IV. Influence of exchange rate alternation on cash and cash equivalents -1,236,414.38 -2,973,560.67
V.Net increase of cash and cash equivalents 24,071,196.77 9,690,648.77
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 302,408,433.72 278,337,236.95
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Cash Flow Statement of the Parent Company
In RMB
Items Year 2021 Year 2020
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 66,467,384.64 64,167,036.73
Tax returned
Other cash received from business operation 42,417,781.16 6,524,378.62
Sub-total of cash inflow 108,885,165.80 70,691,415.35
Cash paid for purchasing of merchandise and services 13,344,258.31 4,462,365.49
Cash paid to staffs or paid for staffs 34,360,990.56 27,619,751.65
Taxes paid 23,084,768.18 34,788,061.46
Other cash paid for business activities 10,293,028.68 8,944,859.88
Sub-total of cash outflow from business activities 81,083,045.73 75,815,038.48
Net cash generated from /used in operating activities 27,802,120.07 -5,123,623.13
II. Cash flow generated by investing
Cash received from investment retrieving 10,817,803.07 6,437,640.00
Cash received as investment gains 11,479,752.94 1,957,306.47
Net cash retrieved from disposal of fixed assets, intangible assets, and other
2,759,267.00
long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 466,820,636.28 1,623,459,188.57
Sub-total of cash inflow due to investment activities 489,118,192.29 1,634,613,402.04
Cash paid for construction of fixed assets, intangible assets and other
2,247,719.06 2,528,077.97
long-term assets
Cash paid as investment 3,555,968.96
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 475,000,000.00 1,530,015,275.20
Sub-total of cash outflow due to investment activities 477,247,719.06 1,536,099,322.13
Net cash flow generated by investment 11,870,473.23 98,514,079.91
III. Cash flow generated by financing
13
Cash received as investment
Cash received as loans
Other financing –related ash received 6,545,900.00
Sub-total of cash inflow from financing activities 6,545,900.00
Cash to repay debts
Cash paid as dividend, profit, or interests 15,176,281.23 11,231.64
Other cash paid for financing activities 7,820,298.30 14,344,136.30
Sub-total of cash outflow due to financing activities 22,996,579.53 14,355,367.94
Net cash flow generated by financing -22,996,579.53 -7,809,467.94
IV. Influence of exchange rate alternation on cash and cash equivalents
V.Net increase of cash and cash equivalents 16,676,013.77 85,580,988.84
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 130,236,340.98 113,560,327.21
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Year 2021
Owner’s equity Attributable to the Parent Company
Other Equity Oth Min
instrument Less er Co or Tot
Sh : Co Spe mm shar al of
Pr Cap Sur Reta
Items are Su Shar mpr ciali on ehol own
efe ital plus ined Oth Subt
Ca sta Ot rese es ehe zed risk ders ers’
rre rese prof er otal
pit ina he rves in nsiv rese prov ’ equi
d rves it
al r stoc e rve isio equi ty
sto ble
k Inco n ty
ck de
bt me
507
I .Balance at 1,96 116, 94,9 86,9 2,76 1,13 3,89
,77 7,52
7,51 605, 54,6 12,3 6,23 3,08 9,31
the end of 2,2
4,35
5,43
932. 52.1 90.5 4,17 1,07 5,24
last year 79. 8.20
8.53 42 4 0 4.39 5.23 9.62
00
Add:
Change
of
account
ing
policy
Correcting
of previous
errors
Merger of
entities
under
common
control
Other
14
II. Balance 507
1,96 116, 94,9 86,9 2,76 1,13 3,89
,77 7,52
at the 7,51 605, 54,6 12,3 6,23 3,08 9,31
2,2 5,43
beginning of 4,35 932. 52.1 90.5 4,17 1,07 5,24
79. 8.20
current year 8.53 42 4 0 4.39 5.23 9.62
00
-1,
III .Changed -5,9 -7,5 43,8 50,5 13,9 64,5
250 3,07 3,29
14,5 25,4 33,8 61,7 52,2 13,9
in the ,43
33.9 38.2
6,18 1,19
61.2 15.5 81.9 97.4
current year 0.0 6.63 3.33
0 0 4 0 5 5
0
（1）Total 61,1 65,3 13,9 79,3
4,23
62,3 96,8 52,2 49,1
comprehensi 4,51
84.2 96.6 81.9 78.6
ve income 2.42
5 7 5 2
（II）
Investment -1,
-5,9 -7,5
250 360, 360,
or ,43
14,5 25,4
474. 474.
decreasing 33.9 38.2
0.0 30 30
of capital by 0 0
0
owners
1．
Ordinary Sh
ares investe
d by shareho
lders
2．
Holders of o
ther equity i
nstruments i
nvested capi
tal
3．Amount
of shares
paid and
accounted as
owners’
equity
-1,
-5,9 -7,5
250 360, 360,
14,5 25,4
4．Other ,43 474. 474.
33.9 38.2
0.0 30 30
0 0
0
-18, -15, -15,
3,17
（III）Profit 371, 195, 195,
5,36
allotment 016. 655. 655.
0.75
22 47 47
1.Providing -3,1
3,17
75,3
of surplus 5,36
60.7
reserves 0.75
5
2.Providing
of common
risk
provisions
15
3．Allotment
-15, -15, -15,
to the
195, 195, 195,
owners (or 655. 655. 655.
shareholders 47 47 47
)
4．Other
(IV) Internal -1,1
115, 1,04
transferring 58,3
832. 2,49
of owners’ 25.7
58 3.21
equity 9
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
comprehensi -1,1
115, 1,04
ve income 58,3
832. 2,49
carry-over 25.7
58 3.21
retained 9
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
506
IV. Balance 1,96 119, 98,2 130, 2,81 1,14 3,96
,52
1,59 682, 45,8 746, 6,79 7,03 3,82
at the end of 1,8
9,82 119. 45.4 251. 5,88 3,35 9,24
this term 49.
4.63 05 7 74 9.89 7.18 7.07
00
16
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Amount in last year
In RMB
Year 2020
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Oth
Min
Les er Co Total
or
Sh Pr s: Co Spe mm of
Cap Sur Reta share
Items are ef Su Sha mpr ciali on Sub owne
ital plus ined Oth hold
Ca err sta res ehe zed risk tota rs’
in Ot rese rese prof er ers’
pit ed in nsiv rese pro l equit
ab her rves stoc rves it equit
al st e rve visi y
le y
oc k Inco on
de me
k
bt
50
9,3 1,97 16,1 119, 90,5 49,3 2,72 1,12 3,85
I .Balance
38, 4,92 39,0 737, 96,9 07,7 7,76 6,85 4,61
at the end of
42 2,24 03.4 783. 23.3 64.0 4,14 1,42 5,57
last year
9.0 8.03 0 31 9 3 4.36 5.82 0.18
0
Add:
Chang
e of
accoun
ting
policy
Correcting
of previous
errors
Merger of
entities
under
common
control
Other
50
II.Balance
9,3 1,97 16,1 119, 90,5 49,3 2,72 1,12 3,85
at the
38, 4,92 39,0 737, 96,9 07,7 7,76 6,85 4,61
beginning
42 2,24 03.4 783. 23.3 64.0 4,14 1,42 5,57
of current
9.0 8.03 0 31 9 3 4.36 5.82 0.18
year
0
-1,
-7,4 -8,6 -3,1 37,6 38,4 44,6
III .Change 56 4,35 6,22
07,8 13,5 31,8 04,6 70,0 99,6
d in the 6,1 7,72 9,64
89.5 65.2 50.8 26.4 30.0 79.4
current year 50. 8.75 9.41
0 0 9 7 3 4
00
（1）Total 1,56 37,2 38,8 6,22 45,0
comprehens 2,50 67,9 30,5 9,64 60,1
17
ive income 8.59 95.7 04.3 9.41 53.7
4 3 4
（II）
-1,
Investment -7,4 -8,6
56 -36 -360,
or 07,8 13,5
6,1 0,47 474.
decreasing 89.5 65.2
50. 4.30 30
of capital 0 0
00
by owners
1．
Ordinary Sh
ares investe
d by shareh
olders
2．
Holders of
other equity
instruments
invested ca
pital
3．Amount
of shares
paid and
accounted
as owners’
equity
-1,
-7,4 -8,6
56 -36 -360,
07,8 13,5
4．Other 6,1 0,47 474.
89.5 65.2
50. 4.30 30
0 0
00
-3,8
3,88
（III）Profit 88,2
8,29
allotment 92.8
2.80
0
-3,8
1.Providing 3,88
88,2
of surplus 8,29
92.8
reserves 2.80
0
2.Providing
of common
risk
provisions
3．
Allotment
to the
owners (or
shareholder
s)
4．Other
(IV) -4,6 469, 4,22
Internal 94,3 435. 4,92
transferring 59.4 95 3.53
18
of owners’ 8
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit
plans that
carry
forward
Retained
earnings
5．Other
comprehens -4,6
469, 4,22
ive income 94,3
435. 4,92
carry-over 59.4
95 3.53
retained 8
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
50
7,7 1,96 116, 94,9 86,9 2,76 1,13 3,89
IV. Balance 7,52
72, 7,51 605, 54,6 12,3 6,23 3,08 9,31
at the end of 5,43
27 4,35 932. 52.1 90.5 4,17 1,07 5,24
this term 8.20
9.0 8.53 42 4 0 4.39 5.23 9.62
0
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
19
Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Year 2021
Other Equity
instrument Other
Shar Capit Less: Comp Speci Surpl Reta
Pref Total of
Items e al Share rehen alized us ined
erre Sust Other owners’
capit Othe reserv s in sive reserv reserv profi
d aina equity
al r es stock Inco e es t
stoc ble me
k debt
I.Balance at 676,
507,7 1,583, 107,63 94,954
7,525, 454, 2,962,59
the end of 72,27 307,50 2,186. ,652.1
438.20 033. 5,223.54
last year 9.00 9.86 85 4
89
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at 676,
507,7 1,583, 107,63 94,954
the 7,525, 454, 2,962,59
72,27 307,50 2,186. ,652.1
beginning of 438.20 033. 5,223.54
9.00 9.86 85 4
89
current year
III .Changed 14,4
-1,25
-5,914, -7,525, 1,130, 3,291, 25,0 19,207,1
in the current 0,430
533.90 438.20 351.54 193.33 84.5 03.68
year .00
1
（I）Total 31,7
2,288, 53,6 34,042,2
comprehensi 677.33 07.5 84.85
ve income 2
(II)
Investment -1,25
-5,914, -7,525, 360,474.
or decreasing 0,430
533.90 438.20 30
of capital by .00
owners
1．
Ordinary Sha
res invested
by sharehold
ers
2．
Holders of ot
her equity ins
truments inv
20
ested capital
3.Amount of
shares paid
and
accounted as
owners’
equity
-1,25
-5,914, -7,525, 360,474.
4．Other 0,430
533.90 438.20 30
.00
-18,3
（III）Profit 3,175, 71,0 -15,195,
allotment 360.75 16.2 655.47
2
1.Providing -3,17
3,175,
of surplus 360.75
5,36
reserves 0.75
2．Allotment -15,1
to the owners 95,6 -15,195,
(or 55.4 655.47
shareholders) 7
3．Other
(IV) Internal
1,04
transferring -1,158, 115,83
2,49
of owners’ 325.79 2.58
3.21
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 1,04
-1,158, 115,83
comprehensi 2,49
325.79 2.58
ve income 3.21
21
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
（VI）Other
IV. Balance 690,
506,5 1,577, 108,76 98,245
879, 2,981,80
at the end of 21,84 392,97 2,538. ,845.4
118. 2,327.22
this term 9.00 5.96 39 7
40
Legal Representative: Person-in-charge of the accounting work： Person-in -charge of the accounting
organ：
Amount in last year
Year 2020
Other Equity
instrument Other
Shar Capit Less: Com Specia Surpl
Pref Retain Total of
Items e al Share prehe lized us
erre Sust ed Other owners’
Capi Oth reser s in nsive reserv reser
d aina profit equity
tal er ves stock Inco e ves
stoc ble
me
k debt
509, 1,589 90,5
I.Balance at 16,13 110,7 637,23
338, ,869, 96,9 2,921,66
the end of 9,003 64,03 4,475.
429. 499.3 23.3 4,361.24
last year .40 7.74 15
00 6 9
Add:
Change
of
accoun
ting
policy
Correcting
of previous
errors
Other
II. Balance
509, 1,589 90,5
at the 16,13 110,7 637,23
338, ,869, 96,9 2,921,66
beginning 9,003 64,03 4,475.
429. 499.3 23.3 4,361.24
of current .40 7.74 15
00 6 9
year
III. Changed -1,5 -6,56 -8,61 -3,13 4,35 39,219 40,930,8
22
in the 66,1 1,989 3,565 1,850 7,72 ,558.7 62.30
current year 50.0 .50 .20 .89 8.75 4
0
（I）Total 1,562 38,882
40,445,4
comprehens ,508. ,928.0
36.60
ive income 59 1
(II)
Investment -1,5
-7,40 -8,61
or 66,1 -360,47
7,889 3,565
decreasing 50.0 4.30
.50 .20
of capital by 0
owners
1．
Ordinary Sh
ares investe
d by shareh
olders
2．
Holders of o
ther equity i
nstruments i
nvested capi
tal
3.Amount
of shares
paid and
accounted
as owners’
equity
-1,5
-7,40 -8,61
66,1 -360,47
4．Other 7,889 3,565
50.0 4.30
.50 .20
0
3,88
（III）Profit -3,888,
8,29
allotment 292.80
2.80
1.Providing 3,88
-3,888,
of surplus 8,29
292.80
reserves 2.80
2．Allotment
to the
owners (or
shareholders
)
3．Other
(IV)
Internal -4,69 469,
4,224,
transferring 4,359 435.
923.53
of owners’ .48 95
equity
1.
Capitalizing
of capital
23
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit
plans that
carry
forward
Retained
earnings
5．Other
comprehens
-4,69 469,
ive income 4,224,
4,359 435.
carry-over 923.53
.48 95
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term
845,9 845,900.
（VI）Other
00.00 00
507, 1,583 94,9
IV. Balance 7,525 107,6 676,45
772, ,307, 54,6 2,962,59
at the end of ,438. 32,18 4,033.
279. 509.8 52.1 5,223.54
this term 20 6.85 89
00 6 4
In RMB
24
Notes to financial statements
I. 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
511.274149 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,Shenfang 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 December 31, 2020, the
Company has issued a total of 507,772,279.00 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 11st meeting of the 8th Board of
Directors of the Group on March 15, 2022.
As of December 31, 2021, A total of 8 subsidiaries of the Company are included in the scope of
consolidation. For details, please refer to Section X Financial Report ,IX "Rights and Interests in
Other Subjects".
II. 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 Report (revised in 2014) issued by
China Securities Regulatory Commission.
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
This financial statement is presented on the basis of going concern.
III. 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
III. 16, ,Note III,19 and Note III. 26 for specific accounting policies.
25
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 December 31, 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
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
26
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 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
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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.
(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
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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 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 , According to the nature of
non-monetary items, it is included in current profits and losses or other comprehensive income.
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
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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 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.
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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 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.
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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.
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
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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 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
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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 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;
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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 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.
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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 ".
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.
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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.
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.
37
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.
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
38
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 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
39
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.
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
40
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.
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
41
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
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.
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic
benefits related to them are likely to flow into the Company and the cost can be measured reliably; Daily
repair expenses of fixed assets that do not meet the requirements for subsequent expenditures of
capitalization of fixed assets are included in the current profits and losses or the cost of related assets
according to the beneficiaries when they occur. For the replaced part, the book value is derecognized.
(2) The method for depreciation
The method for Expected useful life Estimated residual
Category Depreciation
depreciation （Year） value
House and Straight-line method
Building- 35 4.00% 2.74%
Production
Straight-line method
House and
Building-Non- 40 4.00% 2.40%
Production
Decoration of Straight-line method
10 10.00%
Fixed assets
Straight-line method 10-14 4.00% 9.60%-6.86%
Machinery and
42
equipment
Transportation Straight-line method
8 4.00% 12.00%
equipment
Electronic Straight-line method
8 4.00% 12.00%
equipment
Straight-line method
Other equipment 8 4.00% 12.00%
For the fixed assets with the impairment provision withdrawn, the accumulative amount of the
withdrawn fixed assets impairment provision shall be also deducted to calculate and determine the
rate of depreciation.
（3） Identification basis, valuation method and depreciation method of fixed assets leased by
financing
None
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 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
43
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
(1) Conditions for recognizing the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased
assets during the lease term.
On the start date of the lease term, the right-to-use assets is initially measured at cost. The cost includes:
the initial measurement amount of lease liabilities; The lease payment amount issued on or before the
start date of the lease term, where if there is a lease incentive, the amount related to the entitled lease
incentive shall be deducted; The initial direct expenses incurred by the Company as the lessee; The
cost expected to be incurred by the Company as the lessee to dismantle and remove the leased assets,
restore the site where the leased assets are located or restore the leased assets to the state agreed in the
lease terms. The Company, as the lessee, recognizes and measures the demolition and restoration costs
in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies.
Subsequent adjustments shall be made to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company, as the lessee,
can reasonably determine that the ownership of the leased assets is acquired at the expiration of the
lease term, depreciation shall be accrued within the remaining service life of the leased assets. If it
cannot be reasonably determined that the ownership of the leased assets can be obtained at the
expiration of the lease term, depreciation shall be accrued during the lease term or the remaining
service life of the leased assets, whichever is shorter.
See Note V. 21 for the impairment test method of the right-to-use assets and the provision method for
impairment.
30.Intangible assets
(1) Valuation method, service life and impairment test
The intangible assets of the Company include land use rights, proprietary technology and
software.
44
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 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.
See Note V. 21 for the method of depreciation of assets for Intangible assets
（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.
45
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 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.
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.
46
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 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.
47
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 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 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
48
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.
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
49
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:
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
50
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.
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.
51
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 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
For rent in operating lease, the Company shall recognize the current profits and losses according to the
straight-line method in each period of the lease term. The initial direct expenses related to the
operating lease shall be capitalized, apportioned on the same basis as the rental income during the
lease term, and included in the current profits and losses by stages. The variable lease payment related
to operating lease, which is not included in the lease collection amount, shall be included in the current
profits and losses when actually incurred.
(2) Accounting treatment method of financial lease
In 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 receivable, and the net lease investment is the sum of the
unsecured residual value and the present value of the lease receipts that have not yet been received on
the start date of the lease term discounted according to the interest rate of the lease. As the lessor, the
Company calculates and recognizes the interest income of each period in the lease term according to
the fixed periodic interest rate. The variable lease payments obtained by the Company as the lessor
52
that are not included in the measurement of net lease investment are included in the current profits and
losses when actually incurred.
The derecognition and impairment of financial lease receivables shall be treated according to the
provisions of Accounting Standards for Business Enterprises No.22-Recognition and Measurement of
Financial Instruments and Accounting Standards for Business Enterprises No.23-Transfer of Financial
Assets.
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
Approval process Remarks
of accounting policy
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, 2018, the Ministry
of Finance issued the Notice on
Revision and Issuance of The examined and http://www.cninfo.com.cn On
Accounting Standards for Business Adopted at the 2nd meeting of the March 12,2021(Announcement
Enterprises No.21-Leasing (CS 8th Board of Directors No.:2021-12)
[2018] No.35) (hereinafter referred
to as the "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.
①New Leasing Standards
In 2018, the Ministry of Finance issued the revised Accounting Standards for Business Enterprises
No.21-Leasing (hereinafter referred to as "New Leasing Standards"), which shall come into effect on
January 1, 2019 for enterprises listed at home and abroad and those listed overseas and using
international financial reporting standards or accounting standards for business enterprises to prepare
financial statement, and on January 1, 2021 for other enterprises that implement accounting standards
for business enterprises. The Company has implemented the New Leasing Standards since January 1,
2021. According to the relevant provisions of the New Leasing Standards, the Company held the
second meeting of the Eighth Board of Directors on March 10, 2021, approved the implementation of
the New Leasing Standards from January 1, 2021, and adjusted the relevant contents of the accounting
policy. See Notes III. 30 and 31 for the changed accounting policies.
For the contracts existing before the first implementation date, the Company chooses not to
re-evaluate whether they are leases or include leases on the first implementation date. For contracts
53
signed or changed after the first implementation date, the Company evaluates whether the contract is a
lease or includes a lease according to the definition of lease in the New Leasing Standards.
The definition of lease in the New Leasing Standards does not have any significant impact on the
scope of contracts in which the Company meets the definition of lease.
As lessee
The New Leasing Standards require the lessee to recognize the right-to-use assets and lease liabilities
for all leases, except for short-term leases and low-value asset leases that are simplified, and to
recognize depreciation and interest expenses respectively.
The New Leasing Standards allow the lessee to choose one of the following methods to perform
connection accounting treatment on the lease:
According to the Accounting Standards for Business Enterprises No.28-Accounting Policies, Changes
in Accounting Estimates and Error Correction, retrospective adjustment method is adopted.
According to the cumulative impact of the first implementation of these standards, the amount of
retained earnings and other related items in the financial statements at the beginning of the first
implementation of these standards are adjusted, and the information of comparable period is not
adjusted.
According to the New Leasing Standards, the Company has retroactively adjusted the difference
between the first implementation date of New Leasing Standards and the current lease standards into
the retained earnings at the beginning of 2021. At the same time, the Company has not adjusted the
data of comparative financial statements.
For the financial lease before the first implementation date, the Company measures the right-to-use
assets and lease liabilities respectively according to the original book value of the financial lease
assets and the financial lease payments payable;
For the operating lease before the first implementation date, the Company measures the lease
liabilities according to the present value of the remaining lease payment discounted at the
incremental borrowing rate on the first implementation date, and for the lease of houses and
buildings, it measures the right-to-use assets according to the amount equal to the lease liabilities,
and makes necessary adjustments according to the prepaid rent.
On the first implementation date, the Company conducts impairment test on the right-to-use assets and
conducts corresponding accounting treatment according to Notes III. 31.
The Company adopts simplified treatment for the operating lease whose leased assets are low-value
assets before the first implementation date or the operating lease that will be completed within 12
months, without recognizing the right-to-use assets and lease liabilities.
The Company adopts the following simplified treatment for the operating lease before the first
implementation date:
When measuring lease liabilities, the same discount rate can be adopted for leases with similar
characteristics; The measurement of the right-to-use assets may not include the initial direct cost;
54
If there is an option to renew or terminate the lease, the Company will determine the lease term
according to the actual exercise of the option before the first implementation date and other latest
information;
As a substitute for the impairment test of the right-to-use assets, the Company evaluates whether the
contract including leases is an onerous contract before the first implementation date, and adjusts
the right-to-use assets according to the loss reserve amount included in the balance sheet before
the first implementation date;
For the lease change before the first implementation date, the Company makes accounting treatment
according to the final arrangement of the lease change.
The impact of the implementation of the New Leasing Standards on the items of consolidated balance
sheet as of January 1, 2021 is as follows:
Items Book balance before Re Re-measurement Book balance after
adjustment（December classificati adjustment（January
31,2020） on 1, 2021）
Assets：
Right to use assets -- -- 13,762,176.74 13,762,176.74
Total of assets -- -- 13,762,176.74 13,762,176.74
Liabilities
Non-current liabilities due -- -- 4,342,927.51 4,342,927.51
within 1 year
Lease liabilities -- -- 9,419,249.23 9,419,249.23
Total of liabilities -- -- 13,762,176.74 13,762,176.74
For the unpaid minimum lease payment of major operating leases disclosed in the 2020 financial statements,
the Company adjusted the unpaid minimum operating lease payment disclosed under the original lease
standards to the lease liabilities recognized under the New Leasing Standards according to the incremental
loan interest rate of the lessee on January 1, 2021, as follows:
Minimum lease payment for major operating lease on December 31, 2020 A 14,740,264.72
Less: Short-term lease with simplified treatment B 42,452.83
Less: Lease of low-value assets with simplified treatment C --
Plus: Re-evaluated adjustment of the minimum lease payment in the lease D --
term
Plus: Variable lease payment adjustment depending on index or ratio E --
Subtotal F=A-B-C+/-D+/-)E 14,697,811.89
Less：VAT G --
Adjusted operating lease commitment H=F-G 14,697,811.89
Present value of operating lease payment on January 1, 2021 I 13,762,176.74
Plus: Financial lease payable on December 31, 2020 J --
Lease liabilities on January 1st, 2021 K=I+J 13,762,176.74
Including: non-current liabilities due within one year 4,342,927.51
The book value of the right-to-use assets on January 1, 2021 is as follows:
Items 2021.01.01
Right-to-use assets
For the right-to-use assets recognized by the operating lease before 13,762,176.74
55
the first implementation date
Financing leased assets recognized under the original lease --
standards
Total： 13,762,176.74
The impact of the implementation of the New Leasing Standards on the items of 2021 financial
statement is as follows:
Items of consolidated balance Number of statements as Assuming that according Increase/decrease (-)
sheet of December 31, 2021 to the original lease
standards
Assets：
Construction in process 71,482,031.08 71,510,678.35 -28,647.27
Right to use assets 9,221,189.37 -- 9,221,189.37
Total of assets 80,703,220.45 71,510,678.35 9,192,542.10
Liabilities
Non-current liabilities due within
5,175,393.52 -- 5,175,393.52
1 year
Lease liabilities 4,243,855.71 -- 4,243,855.71
Total of liabilities 9,419,249.23 -- 9,419,249.23
Items of consolidated income statement Number of statements Assuming that Increase/decrease
in 2021 according to the (-)
original lease standards
Business costs 1,908,519,413.28 1,908,686,016.10 -166,602.82
Administration expenses 122,088,830.15 122,170,567.39 -81,737.24
Financial expenses -130,344.09 -605,391.28 475,047.19
As lessor
According to the New Leasing Standards, the Company does not need to adjust its lease as a lessor
according to the connection regulations, but it needs to make accounting treatment according to the
New Leasing Standards from the date when the New Leasing Standards are first implemented.
（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 □ Not applicable
Whether need to adjust the balance sheet account at the beginning of the year
□ Yes √ No
No reason for adjusting the balance sheet account at the beginning of the year
No related business.
56
（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
III. 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
2. Tax preference
.In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration
of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Suppo
rting the Development of New-type Display Device Industry (Cai Guan Shui (2021) No. 19),The
Company manufactured key materials and parts for the upstream industry of new-type display
devices including colorful light filter coating and polarizer
sheet that comply with the planning for independent development of domestic industries may enjoy t
he preferential policies of exemption from import tariff for the import of raw materials and consuma
bles for the purpose of self use and production that can not be produced domestically from January 1
, 2021 and December 31, 2030.
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 Beauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Garment Co., Ltd. and
Shenzhen Lisi Industrial Development Co., Ltd., subsidiaries of the Company, are all small and
low-profit enterprises as stipulated in the Notice of the Ministry of Finance and the State
Administration of Taxation on Implementing Inclusive Tax Concession Policy for Small and Micro
Enterprises (CS [2019] No.13). For the part of the taxable income of this year that does not exceed
RMB 1 million, the taxable income is reduced to 12.5%, and the enterprise income tax is paid at a
rate of 20%; For the taxable income of this year that exceeds RMB 1 million but does not exceed
RMB 3 million, the taxable income is reduced to 50% and the enterprise income tax is paid at a rate
of 20%.
57
3.Other
None
IV. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 792.64 4,127.10
Bank deposit 302,472,035.96 271,085,025.10
Other monetary funds -- 7,998,084.75
Total 302,472,828.60 279,087,236.95
Including : The total amount of deposit
6,009,898.07 7,829,822.78
abroad
Other note
At the end of the period, 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 variation
586,540,735.16 684,617,260.06
included in the current profits and
losses
Including：
Structure deposit 0.00 200,536,575.34
Monetary fund 586,540,735.16 484,080,684.72
Including
Total 586,540,735.16 684,617,260.06
Other note：
3. Derivative financial assets
单位：元
Items Year-end balance Year-beginning balance
Other note：
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 77,296,787.26 0.00
Commercial acceptance 72,646,093.02 16,813,657.28
58
Total 149,942,880.28 16,813,657.28
In RMB
Amount in year-end Balance Year-beginning
Bad debt Bad debt
Book Balance Book Balance
provision Book provision Book
Category
Amou Propor Amou Propor value Amou Propor Amount Propor value
nt tion(% nt tion(% nt tion(% tion(%
) ) ) )
Of which：
Accrual of bad 138,1 137,74 16,898 16,813
100.0 365,0 100.00 84,490.7
debt provision by 10,16 0.26% 5,110. ,148.0 0.50% ,657.2
0% 55.74 % 4
portfolio 6.17 43 2 8
Of which：
73,01 72,646 16,898 16,813
Commercial 52.86 365,0 100.00 84,490.7
1,148. 0.50% ,093.0 ,148.0 0.50% ,657.2
acceptance % 55.74 % 4
76 2 2 8
65,09 65,099
47.14
Bank acceptance 9,017. 0.00 0.00% ,017.4 0.00 0.00% 0.00 0.00% 0.00
%
41 1
138,1 137,74 16,898 16,813
100.0 365,0 100.00 84,490.7
Total 10,16 0.26% 5,110. ,148.0 0.50% ,657.2
0% 55.74 % 4
6.17 43 2 8
Accrual of bad debt provision by single item:
In RMB
Amount in year-end
Name
Book Balance Bad debt provision Proportion(%) Reason
Accrual of bad debt provision by portfolio: Commercial acceptance
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Commercial acceptance 73,011,148.76 365,055.74 0.50%
Note：
Accrual of bad debt provision by portfolio:
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Note：
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
None
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balance
amount
59
84,490.74 280,565.00 365,055.74
Total 84,490.74 280,565.00 365,055.74
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3）Notes receivable pledged by the company at the end of the period
In RMB
Items Amount
（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 Amount not yet derecognized at the
Items
the period end of the period
Bank acceptance 65,099,017.41
Total 65,099,017.41
（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
In RMB
Items Amount
Other note
At the end of the term, the Company has no notes to transfer the drawer to the receivables.
（6）The Company had no accounts receivable financing actually written off in the period
In RMB
Items Amount
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Bad debt Bad debt
Book balance Book balance
provision provision
Category Book Book
Propor Propor Propor Propor
Amou Amou value Amou Amou value
tion(% tion(% tion(% tion(%
nt nt nt nt
) ) ) )
Accrual of bad 13,26 13,26 20,641 13,552
100.0 65.66 7,088,13
debt provision by 0,307. 2.56% 0,307. ,002.2 3.52% ,865.2
0% % 6.99
single item 34 34 4 5
Including：
Accrual of bad 502,8 97.43 22,84 479,99 565,27 96.48 25,057 540,222,
4.54% 4.43%
debt provision by 48,54 % 9,841. 8,708. 9,517. % ,436.5 080.91
60
portfolio 9.97 40 57 47 6
Including：
516,1 36,11 479,99 585,92 38,610
100.0 100.00 547,310,
Total 08,85 0,148. 7.00% 8,708. 0,519. ,301.8 6.59%
0% % 217.90
7.31 74 57 71 1
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Beyond the credit
Dongguan Yaxing
period for a long
Semiconductor Co., 2,797,016.81 2,797,016.81 100.00%
time, uncertain
Ltd.
recovered.
Beyond the credit
Dongguan Fair LCD period for a long
1,697,122.75 1,697,122.75 100.00%
Co., Ltd. time, uncertain
recovered.
Beyond the credit
Guangdong Ruili
period for a long
Baolai Technology 1,298,965.36 1,298,965.36 100.00%
time, uncertain
Co., Ltd.
recovered.
Beyond the credit
Huangshan
period for a long
Zhongxianwei 902,031.00 902,031.00 100.00%
time, uncertain
Electric Co., Ltd.
recovered.
Beyond the credit
Shenzhen Gulida
period for a long
Microelectronics 422,178.00 422,178.00 100.00%
time, uncertain
Co., Ltd.
recovered.
Beyond the credit
period for a long
Other 6,142,993.42 6,142,993.42 100.00%
time, uncertain
recovered.
Total 13,260,307.34 13,260,307.34 -- --
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name Bad debt
Book balance Proportion Reason
provision
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 502,848,447.18 22,849,816.11 4.55%
1-2 years 102.79 25.29 24.60%
Total 502,848,549.97 22,849,841.40 --
Note：
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
61
Note：
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） 502,894,801.73
1-2 years 5,702.29
2-3 years 676,153.40
Over 3 years 12,532,199.89
3-4 years 103,011.28
4-5 years 389.73
Over 5 years 12,428,798.88
Total 516,108,857.31
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balance
amount
38,610,301.81 -1,531,351.49 968,801.58 36,110,148.74
Total 38,610,301.81 -1,531,351.49 968,801.58 36,110,148.74
Of which the significant amount of the reversed or collected part during the reporting period :
In RMB
Name Amount Way
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant amount of the reversed or collected part during the reporting period :
In RMB
Whether the
Verification money is
Name Nature Amount Reason procedures generated by
performed related party
transactions
Note：
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
TCL CSOT 81,678,407.05 15.83% 3,700,031.84
62
CSOT 64,415,196.86 12.48% 2,918,008.42
Huijin（Shenzhen）
49,476,257.03 9.59% 2,241,274.45
Technology Co., Ltd.
LG Display（China）
36,387,596.37 7.05% 1,648,358.12
Co., Ltd.
LG Display
（Guangzhou) Co., 35,275,590.17 6.83% 1,597,984.24
Ltd.
Total 267,233,047.48 51.78%
（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
6.Receivable financing
In RMB
Items Closing balance Opening balance
Note receivable 21,474,101.07 102,051,314.08
Total 21,474,101.07 102,051,314.08
Changes in current period and fair value of receivables financing
√Applicable □Not applicable
None
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
None
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
December 31, 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 15,157,623.27 98.38% 14,934,263.03 88.35%
1-2 years 248,996.26 1.62% 557,043.06 3.30%
2-3 years 540,748.42 3.20%
Over 3 years 870,461.88 5.15%
Total 15,406,619.53 -- 16,902,516.39 --
63
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in
time
On December 31, 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
The top five ending balances of prepayments collected according to prepaid objects totaled
RMB 7,270,639.80, accounting for 47.20 % of the total closing balances of prepayments.
Other note：None
8.Other receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 140,185,750.40 5,265,002.71
Total 140,185,750.40 5,265,002.71
（1）Interest receivable
1) Category of interest receivable
单位：元
Items Closing balance Opening balance
Fixed deposit 0.00 0.00
Entrusted loan 0.00 0.00
Bond investment 0.00 0.00
2) Significant overdue interest
In RMB
Whether with
Balance in Reasons for impairment and
Items Aging
year-end non-recovery the judgment
basis
Other note：
3）The bad debt provision
□ Applicable √ Not applicable
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
64
2）Significant dividend receivable aged over 1 year
In RMB
Whether with
Balance in Reasons for impairment and
Items Aging
year-end non-recovery the judgment
basis
3）The bad debt provision
□ Applicable √ Not applicable
Other note：
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Nature Closing book balance Opening book balance
Reserve Funds and Employee Loans 293,128.97 379,477.97
Deposit and security deposit 144,954,822.31 2,585,585.87
Export tax rebate 1,698,919.82 1,658,146.29
Unit exchanges 16,402,902.33 16,369,395.10
Other 1,834,489.23 2,069,761.14
Total 165,184,262.66 23,062,366.37
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss
Bad Debt Reserves for the entire duration Total
losses over the over life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at
573,597.01 17,223,766.65 17,797,363.66
January 1, 2021
Balance as at
January 1, 2021in —— —— —— ——
current
Provision in the
7,221,660.06 7,221,660.06
current period
Balance as at
7,795,257.07 17,203,255.19 24,998,512.26
December 31,2021
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） 146,289,172.36
65
1-2 years 931,075.99
2-3 years 411,482.57
Over 3 years 17,552,531.74
3-4 years 546,382.79
4-5 years 537,717.29
Over 5 years 16,468,431.66
Total 165,184,262.66
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
17,797,36 7,221,660.0
20,511.46 24,998,512.26
3.66 6
17,797,36 7,221,660.0
Total 20,511.46 24,998,512.26
3.66 6
Note
Where the current bad debts back or recover significant amounts:
In RMB
Name Amount Mode
4) Other account receivables actually cancel after write-off
In RMB
Items Amount
Of which the significant amount of the reversed or collected part during the reporting period :
In RMB
Whether the
Verification money is
Name Nature Amount Reason procedures generated by
performed related party
transactions
Other note
5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears
party
In RMB
Portion in total Bad debt
Year-end
Name Nature Aging other provision of
balance
receivables(%) year-end balance
Shenzhen
Beauty Century Internal current
143,101,258.40 1-3 years 86.63% 7,155,062.92
Garment Co., account
Ltd.
Jiangxi Xuanli
Unit account 11,389,044.60 Over 5 years 6.89% 11,389,044.60
Thread Co., Ltd.
Anhui Huapeng Unit account 1,800,000.00 Over 5 years 1.09% 1,800,000.00
66
Textile
Company
Shenzhen Dailisi
Underwear Co., Unit account 1,100,000.00 Within 1 year 0.67% 55,000.00
Ltd
Shenzhen Xieli
Automobile Unit account 1,018,295.37 2-5 years 0.62% 1,018,295.37
Repair Plant
Total -- 158,408,598.37 -- 95.90% 21,417,402.89
6) Accounts receivable involved with government subsidies
In RMB
Name of the Time, amount and
Name government subsidy Year-end balance Aging basis of the expected
project collection
The company has no government subsidies receivable.
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
Other note：
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
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 258,191,196.8 244,402,550.2
349,978,870.87 26,335,509.94 323,643,360.93 13,788,646.60
2 2
Processing
10,992,072.59 10,992,072.59 2,715,845.96 2,715,845.96
products
132,780,479.7
Good in stock 118,034,342.61 36,750,396.02 81,283,946.59 43,914,789.90 88,865,689.82
2
Goods in
7,910,629.62 30,573.89 7,880,055.73 524,698.46 524,698.46
transit
131,069,647.7 116,456,007.1
Semi-finished 270,743,032.26 34,298,745.28 236,444,286.98 14,613,640.62
7 5
Commissione
7,838,404.74 620,680.53 7,217,724.21 31,040,280.45 3,157,490.62 27,882,789.83
d materials
67
556,322,149.1 480,847,581.4
Total 765,497,352.69 98,035,905.66 667,461,447.03 75,474,567.74
8 4
（2）Inventory falling price reserves and reserves for impairment of contract performance costs
In RMB
Increased in current period Decreased in current period
Opening Reversed or Closing
Items
balance Accrual collected Write-off Other balance
amount
Raw materials 13,788,646.60 19,526,328.72 6,979,465.38 26,335,509.94
Good in stock 43,914,789.90 25,646,269.75 32,810,663.63 36,750,396.02
Semi-finished 14,613,640.62 37,652,098.22 17,966,993.56 34,298,745.28
Goods in
30,573.89 30,573.89
transit
Commissione
3,157,490.62 620,680.53 3,157,490.62 620,680.53
d materials
Total 75,474,567.74 83,475,951.11 60,914,613.19 98,035,905.66
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitali
zed
（4）Description of amortization amount of contract performance cost in the current period
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
Other note
11. Assets divided as held-to-sold
Not applicable
Other note：
12. Non-current assets due within 1 year
Not applicable
Other note
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
After the deduction of input VAT 860,153.70 77,482,083.47
Advance payment of income tax 57,448.91
68
Returns receivable costs 28,585,749.81
Total 29,503,352.42 77,482,083.47
Other note：
14.Creditor's right investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other note：
15.Other creditor's rights investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other note
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
Other note
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the
financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
Other note
17. Long-term equity investment
In RMB
Openi Increase /decrease Closin Closin
Investe
ng Additi Decrea Profits Other Chang Cash Withdr g g
es Other
balanc onal se in and compr es in bonus awal balanc balanc
69
e invest invest losses ehensi other or of e e of
ment ment on ve equity profits impair impair
invest incom annou ment ment
ments e nced provisi provisi
Recog to on on
nized issue
under
the
equity
metho
d
I. Joint ventures
Anhui
Huape
10,797 10,797
ng
,023.1 ,023.1
Textile
4 4
Co.,Lt
d.
Shenz
hen
Guanh
ua 127,90 128,21
308,06
Printin 6,165. 4,225.
0.37
g& 17 54
Dyein
g Co.,
Ltd.
138,70 10,797 128,21
Subtot 308,06
3,188. ,023.1 4,225.
al 0.37
31 4 54
2. Affiliated Company
Shenz
hen
Changl
ianfa
2,706, 265,94 2,972,
Printin
262.38 0.59 202.97
g&
dyeing
Compa
ny
Hongk
ong
Yehui
6,519, -540,0 -199,0 3,944, 1,835,
Interna 686.54 16.30 63.73 709.25 897.26
tional
Co.,
Ltd.
Subtot 9,225, -274,0 -199,0 3,944, 4,808,
70
al 948.92 75.71 63.73 709.25 100.23
147,92 10,797 133,02
33,984 -199,0 3,944,
Total 9,137. ,023.1 2,325.
.66 63.73 709.25
23 4 77
Other note
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Fuao auto parts Co., Ltd.（000030） 10,129,390.84
Shenzhen Dailishi Underwear Co.,
23,637,000.00 12,315,939.61
Ltd.
Union Development Group Co., Ltd. 144,109,485.84 152,469,200.00
Jintian Industry（Group）Co., Ltd.
Shenzhen Xinfang Knitting Co., Ltd. 2,227,903.00 2,227,903.00
Shenzhen South Textile Co., Ltd. 16,059,440.88 13,464,994.09
Total 186,033,829.72 190,607,427.54
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for
being
Amount of Reasons for
measured at
other other
fair value and
Recognized comprehensiv comprehensiv
Accumulating Accumulating whose
Name dividend e income e income
income losses changes are
income transferred to transferred to
included in
retained retained
other
earnings earning
comprehensiv
e income
Fuao auto
parts Co., Ltd. 414,007.80 1,158,325.79 1,158,325.79 Disposal
（000030）
Shenzhen
Dailishi
1,037,735.85 21,077,143.74
Underwear
Co., Ltd.
Union
Development 141,509,485.8
208,000.00
Group Co., 4
Ltd.
Shenzhen
Xinfang
1,703,903.00
Knitting Co.,
Ltd.
Jintian
Industry
14,831,681.50
（Group）Co.,
Ltd.
Shenzhen
892,152.37 14,559,440.88
South Textile
71
Co., Ltd.
Other note：
Note: The amount of the Company's investment in Jintian Industrial (Group) Co., Ltd. is all impaired.
As the above items are investments that the Company plans to hold for a long time for strategic
purposes, the Company designates them as financial assets measured at fair value with changes
included in other comprehensive income.
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 30,650,943.40 30,650,943.40
current profits and losses
Total 30,650,943.40 30,650,943.40
Other note：
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Construction in
Items House, Building Land use right Total
process
I. Original price
1. Balance at
period-beginning 261,742,940.53 261,742,940.53
2.Increase in the
current period 3,028,785.00 3,028,785.00
(1) Purchase 3,028,785.00 3,028,785.00
（2）Inventory\Fixed
assets\ Transferred
from construction in
progress
(3)Increased of
Enterprise
Combination
3.Decreased amount
1,127,850.60 1,127,850.60
of the period
（1）Dispose 1,127,850.60 1,127,850.60
（2）Other out
4. Balance at
263,643,874.93 263,643,874.93
period-end
II.Accumulated
72
amortization
1.Opening
151,170,468.61 151,170,468.61
balance
2.Increased amount
6,986,473.75 6,986,473.75
of the period
(1) Withdrawal 6,986,473.75 6,986,473.75
3.Decreased amount
730,847.19 730,847.19
of the period
（1）Dispose 730,847.19 730,847.19
（2）Other out
4. Balance at
157,426,095.17 157,426,095.17
period-end
III. Impairment
provision
1. Balance at
period-beginning
2.Increased
amount of the period
(1) Withdrawal
3.Decreased amount
of the period
（1）Dispose
（2）Other out
4. Balance at
period-end
IV. Book value
1.Book value at
106,217,779.76 106,217,779.76
period -end
2.Book value at
110,572,471.92 110,572,471.92
period-beginning
(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 10,658,816.07
historical reasons
Other note
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
73
Fixed assets 2,424,741,252.86 790,183,905.38
Total 2,424,741,252.86 790,183,905.38
(1) List of fixed assets
In RMB
Houses & Machinery
Items Transportations Other equipment Total
buildings equipment
I. Original price
1.Opening 1,017,693,432.9 1,617,390,766.4
balance 545,896,931.25 11,379,729.08 42,420,673.14
6 3
2.Increased
amount of the 1,535,123,033.2 1,810,679,083.2
258,765,257.28 3,899,262.59 12,891,530.11
period 2 0
(1) Purchase 1,569,521.47 29,933,637.96 1,151,689.53 2,588,556.40 35,243,405.36
(2) Transferred
from constructio 1,505,189,395.2 1,775,435,677.8
257,195,735.81 2,747,573.06 10,302,973.71
n in progress 6 4
(3)Increased of
Enterprise
Combination
3.Decreased
amount of the 2,149,210.94 4,933,091.35 7,082,302.29
period
（1）Disposal 2,149,210.94 4,933,091.35 7,082,302.29
4. Balance at 2,550,667,255.2 3,420,987,547.3
804,662,188.53 15,278,991.67 50,379,111.90
period-end 4 4
II. Accumulated
depreciation
1.Opening
159,918,391.99 630,517,504.87 3,217,030.86 27,084,284.60 820,737,212.32
balance
2.Increased
amount of the 23,052,994.89 147,538,129.77 1,144,752.53 3,394,343.06 175,130,220.25
period
(1)
23,052,994.89 147,538,129.77 1,144,752.53 3,394,343.06 175,130,220.25
Withdrawal
3.Decrease in
the reporting 1,608,147.10 4,407,313.58 6,015,460.68
period
（1）Disposal 1,608,147.10 4,407,313.58 6,015,460.68
4.Closing
182,971,386.88 776,447,487.54 4,361,783.39 26,071,314.08 989,851,971.89
balance
III. Impairment
provision
1.Opening
6,373,080.81 96,567.92 6,469,648.73
balance
74
2.Increase in the
reporting 32,769.22 32,769.22
period
（1）Withdrawal 32,769.22 32,769.22
3.Decrease in
the reporting 11,527.44 96,567.92 108,095.36
period
（1）Disposal 11,527.44 96,567.92 108,095.36
（2）Other
decrease
4. Closing
6,361,553.37 32,769.22 6,394,322.59
balance
IV. Book value
1.Book value of 1,767,858,214.3 2,424,741,252.8
621,690,801.65 10,917,208.28 24,275,028.60
the period-end 3 6
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
(2) Fixed assets temporarily idled
In RMB
Accumulated Impairment
Items Original price Book value Remark
depreciation provision
⑶Fixed assets leased out through operating leases
In RMB
Items Book value
(4) Fixed assets without certificate of title completed
In RMB
Items Book Value Reason
Unable to apply for warrants due to
Houses and Building 275,225,966.28
historical reasons
Other note
（5）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Other note
75
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 71,482,031.08 1,301,750,141.12
Total 71,482,031.08 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
Industrializati
on project of
polaroid for 1,301,693,689 1,301,693,689
super large .12 .12
size TV
(Line 7)
Other 56,452.00 56,452.00
Installation of
machines and 71,482,031.08 71,482,031.08
equipment
1,301,750,141 1,301,750,141
Total 71,482,031.08 71,482,031.08
.12 .12
（2）Changes of significant construction in progress
In RMB
Includ
Capit
ing：
alisati
Curre Capit
on of
Amou Trans nt alisati
Increa Balan intere
nt at ferred Other Propo Progr amou on of Sourc
Budg se at ce in st
Name year to decre rtion( ess of nt of intere e of
et this year-e accu
begin fixed ase %) work capita st funds
period nd mulat
ning assets lizatio ratio
ed
n of （%)
balan
intere
ce
st
Indust Invest
rializa ment
2,088, 1,301, 468,8 1,770, 13,74 9,807,
tion 99.26 in
865,4 693,6 44,86 538,5 7,732. 167.2 4.41% Other
projec % fixed
00.00 89.12 1.20 50.32 55 6
t of assets
Polar has
76
oid been
for transf
super erred
large
size
TV
(Line
7)
2,088, 1,301, 468,8 1,770, 13,74 9,807,
Total 865,4 693,6 44,86 538,5 -- -- 7,732. 167.2 4.41% --
00.00 89.12 1.20 50.32 55 6
（3）Impairment provision of construction projects
Not applicable
Other note
（4）Engineering material
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Other note：
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 √ Not applicable
25. Right to use assets
In RMB
Items Total
1. Balance at year beginning 13,762,176.74 13,762,176.74
4. Year-end balance 13,762,176.74 13,762,176.74
2. Increase at this period 4,540,987.37 4,540,987.37
4. Year-end balance 4,540,987.37 4,540,987.37
1.Book value 9,221,189.37 9,221,189.37
Other note：
None
77
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
17,616,287.32 17,616,287.32
current period
(1) Purchase 17,616,287.32 17,616,287.32
（2）Internal R
&D
（3）Increased
of Enterprise
Combination
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
48,258,239.00 11,825,200.00 21,696,241.02 81,779,680.02
period-end
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
895,391.76 4,134,714.47 5,030,106.23
current period
(1)
895,391.76 4,134,714.47 5,030,106.23
Withdrawal
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
14,382,583.03 11,825,200.00 6,936,736.99 33,144,520.02
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased
78
amount of the
period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
33,875,655.97 0.00 14,759,504.03 48,635,160.00
period -end
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
In RMB
Items Book value Reason
Other note：
For intangible assets mortgaged by bank loans, please refer to VII Notes to consolidated financial
statements "81. Assets with restricted ownership or use rights".
27. .Development expenses
In RMB
Increase in this period Decrease in this period
Balance Internal
Recognize Transfer Balance
in developm
Items d as to current in
year-begi ent Other
intangible profit and year-end
n expenditu
assets loss
re
Total
Other note
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the Increase Decrease
investees or
Opening Closing
the events The merger of
balance disposition balance
formed enterprises
goodwill
SAPO
9,614,758.55 9,614,758.55
Photoelectric
Shenzhen
2,167,341.21 2,167,341.21
Beauty Century
79
Garment Co.,
Ltd.
Total 11,782,099.76 11,782,099.76
（2）Impairment of goodwill
In RMB
Balance in Increased at this period .Decreased at this period Closing
Investee year-begin balance
Provision disposition
SAPO
9,614,758.55 9,614,758.55
Photoelectric
Shenzhen
Beauty Century
2,167,341.21 2,167,341.21
Garment Co.,
Ltd.
Total 11,782,099.76 11,782,099.76
Information about an asset group or asset group portfolio
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
Impact of the goodwill impairment test
Other note
29. Long term amortize expenses
In RMB
Amortized
Balance in Increase in this expenses Balance in
Items Other loss
year-begin period year-end
Decoration fee 111,541.85 409,932.91 188,830.66 332,644.10
Renovation fee 1,264,954.74 3,224,534.02 714,221.68 3,775,267.08
Other 1,500,064.94 47,430.80 268,110.98 1,279,384.76
Total 2,876,561.53 3,681,897.73 1,171,163.32 5,387,295.94
Other note
None
30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
80
Deductible Deferred income tax Deductible Deferred income tax
temporary difference assets temporary difference assets
Assets depreciation
5,766,782.71 1,440,192.90 18,865,669.84 4,709,761.70
reserves
Unattained internal
2,324,192.50 348,628.88 2,413,307.05 361,996.06
sales profits
Restricted stock
686,670.00 171,667.50
repurchase interest
Salary payable to
7,679,100.00 1,919,775.00
staff
Total 15,770,075.21 3,708,596.78 21,965,646.89 5,243,425.26
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Items Deductible Deferred income tax Deductible Deferred income tax
temporary difference liabilities temporary difference liabilities
Changes in fair value
of investments in
178,849,973.46 44,712,493.37 174,482,972.97 43,620,743.24
other 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
Difference in rent
5,636,976.78 1,409,244.20
receivable
Total 246,570,643.60 61,642,660.91 236,566,666.33 59,141,666.58
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between
Trade-off between End balance of Opening balance of
the deferred income
the deferred income deferred income tax deferred income tax
Items tax assets and
tax assets and assets or liabilities assets or liabilities
liabilities at
liabilities after off-set after off-set
period-begin
Deferred income tax
3,708,596.78 5,243,425.26
assets
Deferred income tax
61,642,660.91 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 151,099,673.68 122,887,462.20
81
Deductible loss 733,029,237.95 682,013,840.25
Total 884,128,911.63 804,901,302.45
(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 129,226,944.33 129,226,944.33
2024 148,095,898.11 148,095,898.11
2025 83,287,153.64 83,287,153.64
2026 120,820,767.06 120,820,767.06
2028 22,594,586.97 22,594,586.97
2029 100,351,965.47 100,351,965.47
2030 77,636,524.67 77,636,524.67
2031 51,043,562.99
Total 733,057,403.24 682,013,840.25 --
Other note：
None
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book Provision Book Book Provision Book
Items balance for value balance for value
devaluatio devaluatio
n n
Advance payment for equipment 28,769,78 28,769,78 47,483,21 47,483,21
0.00 0.00
fund 2.86 2.86 9.83 9.83
Certificate of deposit for more than 30,030,41 30,030,41 70,064,38 70,064,38
0.00 0.00
1 year 0.96 0.96 3.56 3.56
25,760,08 25,760,08 25,760,08 25,760,08
Shenzhen Xieli Automobile Co., ltd. 0.00 0.00
6.27 6.27 6.27 6.27
84,560,28 84,560,28 143,307,6 143,307,6
Total 0.00 0.00
0.09 0.09 89.66 89.66
Other note：
None
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance Year-beginning
Note：
(2) Situation of Overdue Outstanding Short-Term Borrowing
82
Not applicable
Other note：
33. Transactional financial liabilities
In RMB
Items Balance in year-end Balance year-beginning
Including：
Including：
Other note：
34. Derivative financial liability
In RMB
Items Balance in year-end Balance year-beginning
Other note：
35.Notes payable
In RMB
Type Balance in year-end Balance in year-begin
Bank acceptance Bill 16,682,324.12 0.00
Total 16,682,324.12
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 280,210,281.65 325,354,275.46
1-2 years 1,122,451.76 1,912,000.86
2-3 years 496,309.68 96,543.25
3-4 years 44,629.53 1,093,369.87
4-5 years 983,598.33 37,402.40
Over 5 years 786,571.28 975,010.06
Total 283,643,842.23 329,468,601.90
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Reason
Other note：
None
83
37.Advance account
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 968,394.67 666,457.75
1-2 years 197,892.32 2,236,912.00
2-3 years
Over 3 years 639,024.58 639,024.58
Total 1,805,311.57 3,542,394.33
(2) Significant advance from customers aging over one year
In RMB
Items Balance in year-end Reason
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Good 68,955.21 279,631.27
Less：Contractual liabilities charged
to other non-current liabilities
Total 68,955.21 279,631.27
Amount and reasons for the significant change in the book value during the reporting period
In RMB
Items Amount Reason
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Balance in Increase in this Payable in this Balance in year-end
Items
year-begin period period
I. Short-term
55,642,549.53 235,951,646.92 231,874,336.21 59,719,860.24
compensation
II.Post-employment
benefits - defined co 15,705,799.59 15,705,799.59
ntribution plans
III. Dismissal
2,636,463.20 2,636,463.20
benefits
Total 55,642,549.53 254,293,909.71 250,216,599.00 59,719,860.24
（2）Short-term remuneration
In RMB
Balance in Increase in this Decrease in this Balance in year-end
Items
year-begin period period
1.Wages, bonuses, 53,293,551.94 211,994,691.05 208,173,934.97 57,114,308.03
84
allowances and
subsidies
2.Employee welfare 41,093.20 8,393,472.90 8,434,566.10
3. Social insurance
2,723,153.85 2,723,153.85
premiums
Including：Medical
2,254,940.97 2,254,940.97
insurance
Work injury
175,636.12 175,636.12
insurance
Maternity insurance 292,576.76 292,576.76
4. Public reserves
7,339,217.34 7,339,217.34
for housing
5.Union funds and
2,307,904.39 5,501,111.78 5,203,463.95 2,605,552.21
staff education fee
Total 55,642,549.53 235,951,646.92 231,874,336.21 59,719,860.24
（3）Defined contribution plans listed
In RMB
Balance in Increase in this Decrease in this Balance in year-end
Items
year-begin period period
1. Basic old-age
insurance premiums 13,082,445.90 13,082,445.90
2.Unemployment
insurance 278,249.09 278,249.09
3. Annuity payment 2,345,104.60 2,345,104.60
Total 15,705,799.59 15,705,799.59
Other note：
None
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 6,334,093.50 286,928.75
Enterprise Income tax 1,804,277.95 11,219,726.43
Individual Income tax 866,274.38 469,169.71
City Construction tax 43,259.90 48,751.30
House property tax 102,146.02 102,146.02
Education surcharge 31,608.85 33,386.49
Stamp tax 18,966.49 36,370.02
Land use tax 0.00 2,043.30
Total 9,200,627.09 12,198,522.02
Other note：
None
41.Other payable
In RMB
85
Items Balance in year-end Balance in year-begin
Other payable 201,317,421.35 156,118,440.42
Total 201,317,421.35 156,118,440.42
（1）Interest payable
Not applicable
Other note：
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
(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 91,213,156.89 32,713,413.76
Unit account 51,681,042.57 48,394,939.72
Deposit 43,277,481.38 36,130,306.12
Restrictive stock repurchase
0.00 7,844,373.00
obligation
Other 15,145,740.51 31,035,407.82
Total 201,317,421.35 156,118,440.42
(2) Other significant accounts payable with aging over one year
In RMB
Items Balance in year-end Reason
Other note
None
42. Liabilities classified as holding for sale
In RMB
Items Balance in year-end Balance in year-begin
Other note：
43. Non-current liabilities due within 1 year
In RMB
86
Items Balance in year-end Balance in year-begin
Lease liabilities due within one year 5,175,393.52 0.00
Total 5,175,393.52
Other note：
None
44.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
Did not terminate the confirmation
27,523,903.58 0.00
bill endorsement, discount
Total 27,523,903.58
Other note：
None
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
Items Balance in year-end Balance in year-begin
Mortgage-guaranteed loan 683,016,243.25 343,100,174.35
Less：Long-term borrowings due
0.00 0.00
within 1 year
Total 683,016,243.25 343,100,174.35
Description of the long-term loan classification
Other note,
46.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability
In RMB
Overfl
Openi Withdr Closin
Name Issue The ow Pay in
Book Issue ng aw g
of the Period amoun current discou current
value date balanc interes balanc
bond t issue nt period
e t at par e
amoun
87
t
Total -- -- --
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
Basic situation of other financial instruments outstanding at the period-end such preferred shares and
perpetual bonds
Changes in financial instruments outstanding at the period-end such preferred shares and perpetual
liabilities
Other note
47. Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
lease liabilities 9,419,249.23
Less：Lease liabilities due within 1
-5,175,393.52
year
Total 4,243,855.71
Other note
The accrued interest expense of lease liabilities in 2021 is RMB 475,000, which is included in the
financial expense-interest expense.
48. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
（1）Statement of long-term payroll payable
In RMB
Items Balance year-end Year-beginning balance
Other note：
（2）Special payable
In RMB
Year-beginning Balance
Items Increase Decrease Reason
balance year-end
Other note：
88
49. Long term payroll payable
（1）Statement of long-term payroll payable
Not applicable
（2）Change of defined benefit plans
Not applicable
Other note：
50.Estimated liabilities
In RMB
Items Balance in year-end Balance in year-begin Reason
Repayment payable 30,741,055.00
Total 30,741,055.00 --
Other note：
51.Deferred income
In RMB
Beginning of Increased this Decreased this
Items End of term Reason
term term term
Government
110,740,322.21 13,660,000.00 13,939,029.06 110,461,293.15
Subsidy
Total 110,740,322.21 13,660,000.00 13,939,029.06 110,461,293.15 --
Details of government subsidies：
In RMB
Amount Other Amount of
New Asset-relate
transferred income cost
Beginning subsidy in Other d or
Items to recorded in deducted in End of term
of term current changes income-rela
non-operati the current the current
period ted
onal income period period
Other note：
For details of government subsidies included in deferred revenue, please refer to Note XIV. 2.
Government subsidies.
52. . Other non-current liabilities
In RMB
Items Balance year-end Year-beginning balance
Other note：
89
53.Stock capital
In RMB
Changed（+，-）
Year-begin
Balance in
ning Issuance of Bonus Capitalizati
Other Subtotal year-end
balance new share shares on of public
reserve
Total of
507,772,27 -1,250,430. -1,250,430. 506,521,84
capital
9.00 00 00 9.00
shares
Other note：
Note: This year, 1,250,430.00 restricted shares that have been granted but not yet unlocked were
repurchased and cancelled, with a reduction of RMB 1,250,430.00, which has been verified by Peking
Certified Public Accountants (special general partnership), and the capital verification report (QXY Zi
(2021) No.0013) was issued on April 27, 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
(2)Movement of the outstanding other financial instruments, including preferred shares, perpetual
bonds, etc. at the end of the reporting period
Other note：
55. Capital reserves
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
Share premium 1,832,397,142.44 5,914,533.90 1,826,482,608.54
Other capital
135,117,216.09 135,117,216.09
reserves
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
Items Year-beginning Increase in the Decrease in the Year-end balance
90
balance current current 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
Less：
Less：
Prior
Amount
period
transferre
include
d into
d in After-ta
profit and
Amoun other After-ta
loss in the x
Year-beg
t compos Less： x Year-
current attribut
incurre ite Income attribut end
Items inning period e to
d income tax e to the balan
balance that minorit
before transfer expens parent ce
recognied y
income to es compan
into other shareho
tax retaine y
comprehe lder
d
nsive
income
income in
in the
prior
current
period
period
1. Other comprehensive
118,6
income that cannot be 115,367, 3,237,3 -847,23 809,33 3,275,2
43,08
reclassified in the loss and 833.87 49.34 8.36 7.34 50.36
4.23
gain in the future
Changes in fair value of 118,6
115,367, 3,237,3 -847,23 809,33 3,275,2
investments in other equity 43,08
833.87 49.34 8.36 7.34 50.36
instruments 4.23
2.Other comprehensive
1,039,
income reclassifiable to 1,238,09 -199,06 -199,06
034.8
profit or loss in subsequent 8.55 3.73 3.73
2
periods
Translation differences of 1,039,
financial statements 1,238,09 -199,06 -199,06
034.8
denominated 8.55 3.73 3.73
2
Total of other 119,6
116,605, 3,038,2 -847,23 809,33 3,076,1
comprehensive income 82,11
932.42 85.61 8.36 7.34 86.63
9.05
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
In RMB
91
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
59. Surplus reserves
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
Statutory surplus
94,954,652.14 3,291,193.33 98,245,845.47
reserve
Total 94,954,652.14 3,291,193.33 98,245,845.47
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement
in the reporting period:
Note: The increase amount in the current period is RMB 3,291,193.33, including RMB 3,175,360.75
accrued according to 10% of the current net profit and RMB 115,832.57 accrued from other
comprehensive income carry-over retained earnings.
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
86,912,390.50 49,307,764.03
year beginning
Retained earnings after adjustments at the
86,912,390.50 49,307,764.03
year end
Add: Net profit attributable to owners of
61,162,384.25 37,267,995.74
the Company for the period
Less: Appropriation to statutory surplus
3,175,360.75 3,888,292.80
reserve
Common stock dividend payable 15,195,655.47
Add：Other comprehensive earnings are
1,042,493.21 4,224,923.53
carried forward to retained earnings
Retained profits at the period end 130,746,251.74 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 .
92
(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 2,265,990,629.90 1,900,247,328.79 2,097,432,885.06 1,808,092,705.48
Other business 27,757,262.16 8,272,084.49 11,531,802.74 6,205,689.54
Total 2,293,747,892.06 1,908,519,413.28 2,108,964,687.80 1,814,298,395.02
Whether the net profit before and after deducting non-recurring gains and losses is negative after
audit
□ Yes √ No
Income-related information:
In RMB
Type Division 1 Division 2 Total
Of which
Property lease
management and 139,325,762.71 139,325,762.71
others
Textile 54,932,578.58 54,932,578.58
Polarizer 2,099,489,550.77 2,099,489,550.77
Of which
Domestic 2,039,625,757.16 2,039,625,757.16
Overseas 254,122,134.90 254,122,134.90
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:
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 1,625,005.70 718,695.23
Education surcharge 1,169,628.61 517,483.70
Property tax 5,826,834.91 4,338,584.18
93
Other 1,902,078.87 1,772,362.54
Total 10,523,548.09 7,347,125.65
Other note：
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 18,266,837.81 12,958,215.67
Business expenses 1,256,926.46 668,407.23
Sales service 12,684,139.28 12,697,476.62
Property insurance 2,716,981.13
Other 3,048,451.71 2,320,131.35
Total 37,973,336.39 28,644,230.87
Other note：
None
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 80,805,949.97 74,790,949.11
Depreciation of fixed assets 10,728,532.58 9,794,203.66
Water and electricity 2,123,594.28 2,576,447.96
Intermediary organ 8,120,482.28 3,271,775.61
Intangible assets amortization 5,030,106.23 1,612,363.59
Travel expenses 468,553.20 408,221.21
Office expenses 1,192,408.92 946,055.89
Business entertainment 1,754,789.06 615,454.09
Lawsuit expenses 914,353.81 144,161.32
Repair charge 2,057,702.25 1,366,609.60
Property insurance 648,821.25 380,689.81
Other 8,243,536.32 9,188,002.51
Total 122,088,830.15 105,094,934.36
Other note：
None
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
94
Wage 15,697,764.59 13,177,489.03
Material 83,197,051.56 49,679,847.18
Depreciation 3,326,098.79 2,984,978.79
Fuel & Power 976,547.62 1,017,795.21
Travel expenses 177,340.24 226,949.44
Other 133,961.73 73,904.57
Total 103,508,764.53 67,160,964.22
Other note:
None
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 24,113,442.39 4,175,380.96
Less：Interest capitalized 9,807,167.26 3,940,565.29
Interest income -1,655,853.59 -3,702,735.59
Exchange loss -20,976,430.83 8,108,404.80
Discount interest on acceptance bill 1,390,467.41 0.00
Fees and other 6,805,197.79 3,647,403.40
Total -130,344.09 8,287,888.28
Other note：
None
67.Other income
In RMB
Items Amount of current period Amount of previous period
Amortization for subsidies for new
production lines and purchase of
3,000,000.00 3,000,000.00
equipment for the Phase II project of
polarizers for TFT-LCD
Amortization of funds for the pilot
project of regional agglomeration
2,500,000.08 2,500,000.00
development of strategic emerging
industries in Guangdong Province
Amortization of local matching
funds for the second phase of 1,500,000.00 1,500,000.00
TFT-LCD polarizer project (Line 6)
Amortization of subsidy funds for
industrialization project of polarizers 1,299,999.96 1,300,000.00
for TFT-LCD
Shenzhen Municipal Finance 1,250,000.00 0.00
95
Committee’s polarizer
industrialization project for
super-sized TVs
Amortization of national subsidy for
TFT-LCD polarizer phase II project 1,000,000.00 1,000,000.00
(Line 6)
Amortization of subsidy funds for
the narrow line (Line 5) of the
500,000.04 500,000.00
first-phase project of polarizer for
TFT-LCD
Amortization of Shenzhen
Polarizing Materials and Technology 500,000.00 500,000.00
Engineering Laboratory
Amortization of subsidy funds for
R&D equipment for key
500,000.04 500,000.00
technologies of optical
compensation films for polarizers
Shenzhen Municipal Air
Environment Quality Improvement 494,931.57 468,931.57
Special Fund Subsidy
2021 Special Major Project Award
and Subsidy Support Plan for
367,666.68 0.00
Technological Transformation and
Doubling
Amortization of funding for
300,000.00 300,000.00
technology center construction
Amortization of subsidies for
purchase of imported equipment and 175,090.20 175,090.20
technology
Amortization of special funds for
142,857.16 142,857.16
textiles
Amortization of capital subsidy for
142,255.72 142,255.72
change & renovation of old elevators
Amortization of innovative and
entrepreneurial funds for the first
50,000.04 50,000.00
phase of the TFT-LCD polarizer
project
Amortization of innovation and
entrepreneurship funds of Shenzhen
50,000.04 50,000.00
Polarizing Materials and Technology
Engineering Laboratory
Amortization of innovative and
entrepreneurial funds for the second
50,000.04 50,000.00
phase of the TFT-LCD polarizer
project (Line 6)
Dyeing project technical
39,000.00 0.00
transformation subsidy
Amortization of energy-saving
27,172.70 29,642.93
renovation subsidy funds
Subsidies for investment projects in
special technological transformation
19,000.00 11,083.33
and doubling for technological
transformation in 2020
96
Funding for key technology research
and development of polarizers for 16,666.67 0.00
ultra-thin IPS smartphone terminals
Amortization of Funds for
14,388.12 14,388.10
Introducing Advanced Technology
Shenzhen Bureau of Industry and
Information Technology's 2021
2,590,000.00 0.00
Industrial Enterprises Expansion
Capacity Incentive Project Subsidy
Shenzhen Science and Technology
Innovation Committee 2020 1,018,000.00 0.00
Enterprise R&D Subsidy
Headquarters Economic
Comprehensive Economic
500,000.00 0.00
Contribution Award (Futian District
Enterprise Development Center)
Shenzhen Pingshan District Finance
Bureau 2019 Pingshan District
500,000.00 0.00
Harmonious Labor Relations
Enterprise Award Fund
The second batch of funding of the
2020 Science and Technology
Innovation Special Fund of 360,000.00 0.00
Shenzhen Pingshan District Finance
Bureau (standardized funding)
The second batch of special funds of
scientific and technological
innovation in 2020 of Shenzhen
300,000.00 0.00
Pingshan District Finance Bureau
(High-tech Enterprise Recognition
Award)
Stable Job Subsidy 118,832.69 160,712.86
Municipal Ecological Environment
Bureau Cleaner Production Incentive 100,000.00 0.00
Support Subsidy
The sixth batch of pre-job training
subsidies by Longgang District of 68,000.00 0.00
Human Resources Bureau
Shenzhen Pingshan District Human
Resources Bureau’s one-time
60,000.00 0.00
subsidy for enterprises to absorb and
file poor laborers
Received subsidy from Longgang
District Human Resources Bureau 27,000.00 0.00
for work-for-training
Subsidy from Shenzhen Futian
District Human Resources Bureau 16,500.00 0.00
for work-for-work training
Subsidy from Luohu district for
15,500.00 0.00
work-for-work training
Employee maternity benefits
returned by Social Security 10,592.53 32,609.51
Administration
97
Unpaid VAT (input plus deduction) 9,899.54 0.00
The second batch of special funds
for scientific and technological
innovation by Shenzhen Pingshan 4,800.00 0.00
District Finance Bureau in 2020
(Intellectual Property Award)
Tax office fee refund 5,225.51 24,898.73
Sewage fee refund 0.00 597,362.55
Shenzhen Industrial and Commercial
0.00 6,952,943.71
Electricity Cost Reduction Subsidy
Social Security Administration
0.00 1,815.00
premium refund
Pingshan District Finance Bureau's
759.00
Second Batch of Epidemic Subsidies
2019 Water-saving Carrier Award
Fund of Shenzhen Water Affairs 374,102.00
Bureau
Shenzhen Pingshan District Finance
Bureau 2018 Harmonious Labor 1,000,000.00
Relations Enterprise Award Fund
Shenzhen Science and Technology
Innovation Committee 2018 1,278,000.00
Enterprise R&D Subsidy
Pingshan District Science and
Technology Innovation Bureau's
50,000.00
2019 High-tech Enterprise
Recognition Award
Pingshan District Subsidy for
1,645,500.00
Work-for-Training
Shenzhen Pingshan District Human
Resources Bureau trial training 111,600.00
subsidy
Shenzhen Pingshan District Finance
Bureau subsidy support for the
1,200,000.00
steady growth of foreign trade in
Pingshan District in 2020
Received refund of unemployment
benefits for companies affected by
2,709,874.84
the epidemic from the Social
Security Bureau
Market Supervision Administration's
Second Batch of Patent Subsidies in 9,000.00
2018
Government subsidizes for epidemic
10,000.00
protective supplies
Cultural Tourism Stabilization
100,000.00
Support Subsidy
The first batch of special funds for
scientific and technological 966,000.00
innovation in 2019
Received subsidies from the Public
Employment Service Center for 1,425.20
stabilizing jobs
98
Received the reward for the
epidemic prevention effect from the
20,000.00
Bureau of Industry and Information
Technology
Received subsidy for housing
epidemic prevention at 145#
Fenghuang Road from Shenzhen 5,638.00
Luohu District Housing and
Construction Bureau
Received the epidemic prevention
subsidy for Shenzhen No. 52 Textile
Compound, Tianbei 2nd Road from 8,531.45
the Housing and Construction
Bureau of Luohu District Shenzhen
Urban construction tax and
1,047.51
surcharges halved
Stamp duty halved 183.32
Luohu District Epidemic Prevention
10,000.00
Subsidy
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns
33,984.66 -3,446,613.86
accounted for by equity method
Investment income from the disposal of
20,779.93 0.00
long-term equity investment
Dividend income earned during
investment holdings in other equity 2,551,896.02 2,946,592.79
instruments
Structured deposit interest 2,749,600.18 18,231,107.84
Interest income on term deposits over 1
2,350,000.00 853,205.47
year
Net monetary gains 14,956,752.27 4,015,378.50
Total 22,663,013.06 22,599,670.74
Other note：
None
69.Net exposure hedging income
In RMB
Items Amount of this period Amount of last period
Other note：
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
99
Transaction financial assets 536,575.34
Other non-current financial assets 2,150,943.40 2,150,943.40
Total 2,150,943.40 2,687,518.74
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 -7,201,148.60 -1,828,410.68
Loss of bad note receivable -280,565.00 -84,490.74
Loss of bad accounts receivable 2,500,153.07 -8,481,632.23
Total -4,981,560.53 -10,394,533.65
Other note：
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and
Impairment of contract performance -83,475,951.11 -65,942,828.90
costs
V. Impairment loss of fixed assets -32,769.22 -6,469,648.73
Total -83,508,720.33 -72,412,477.63
Other note：
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
I. Gains & losses on foreign
-597,458.77 276,544.73
investment in fixed 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
Insurance compensation 3,477,438.60 3,477,438.60
Payable without payment 1,371,678.99
Liquidation profit and loss 17,140,459.60 17,140,459.60
Other 667,888.44 73,983.39 667,888.44
Total 21,285,786.64 1,445,662.38
Government subsidies recorded into current profits and losses：
In RMB
Issuing Issuing Whether the Whether Amount of Amount of Assets-relat
Items Nature
body reason impact of special current previous ed/income-r
100
subsidies on subsidies period period elated
the current
profit and
loss
Other note：
75.Non-current expenses
In RMB
Amount of current period Amount of previous period The amount of
Items non-operating gains &
lossed
Non-current asset
369,187.12 3,315.15 369,187.12
Disposition loss
Fine expenses 1,309,172.27 115,314.20 1,309,172.27
Other 7,903.96 19,791.92 7,903.96
Total 1,686,263.35 138,421.27
Other note：
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 8,174,724.28 8,422,038.43
Deferred income tax expense 2,944,072.68 -218,317.45
Total 11,118,796.96 8,203,720.98
(2)Reconciliation of account profit and income tax expenses
In RMB
Items Amount of current period
Total profits 86,233,463.16
Current income tax expense accounted by tax and
relevant 21,558,365.79
regulations
Influence of different tax rates applied by some
-7,491,633.67
subsidiaries
Non-deductible costs, expenses and losses 4,571,839.81
Tax impact by the unrecognized deductible losses and
8,059,643.49
deductible temporary differences in previous years
Profit and loss of joint venture and associated
-53,103.78
enterprises accounted for by equity method
Tax impact of research and development fee plus
-15,526,314.68
deduction
Income tax fee 11,118,796.96
Other note
77. Other comprehensive income
Refer to the notes 57
101
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
Letter of Credit Deposit 35,875,977.74 95,971,397.61
Interest income 1,655,853.59 3,702,735.59
Government Subsidy 19,363,739.42 12,029,059.97
Current account 31,729,758.78 11,704,807.26
Total 88,625,329.53 123,408,000.43
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 164,509,022.41 50,257,183.69
Cash 48,012,370.68 37,855,834.17
Current account and other 12,867,319.88 9,104,639.66
Total 225,388,712.97 97,217,657.52
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
1,128,309,484.61 3,112,161,370.37
products, principal and income
L/C margin for purchase of line 7
126,799,633.00
equipment
Credit deposit for non-Line 7
1,900,000.00
equipment
Total 1,128,309,484.61 3,240,861,003.37
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial
965,000,000.00 3,004,000,000.00
products, principal and income
L/C margin for purchase of line 7
2,150,000.00
equipment
Credit deposit for non-Line 7
1,900,000.00
equipment
Equity transaction expenses 15,275.20
Total 965,000,000.00 3,008,065,275.20
102
Note to other Cash paid related to other investment activities
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
（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 9,344,136.30
incentive object
Lease payment 4,817,974.70
Total 12,638,273.00 9,344,136.30
Note to other Cash paid related with financing activities：
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 75,114,666.20 43,497,645.15
Add: Impairment loss provision of
assets 83,508,720.33 82,807,011.28
Depreciation of fixed assets, oil and
gas assets and consumable biological 182,116,694.00 117,440,111.32
assets
Depreciation of Use right
4,540,987.37
assets
Amortization of intangible assets 5,030,106.23 1,612,363.59
Amortization of Long-term deferred
1,171,163.32 582,518.72
expenses
Loss on disposal of fixed assets,
intangible assets and other long-term -597,458.77 -276,544.73
deferred assets
Fixed assets scrap loss 369,187.12 3,315.15
Loss on fair value changes -2,150,943.40 -2,687,518.74
Financial cost 14,306,275.13 455,850.38
Loss on investment -22,663,013.06 -22,599,670.74
Decrease of deferred income tax 1,534,828.48 374,601.17
103
assets
Increased of deferred income tax
2,500,994.33 -10,802,679.08
liabilities
Decrease of inventories -270,089,816.70 -39,880,044.30
Decease of operating receivables -58,547,894.61 -184,426,504.09
Increased of operating Payable -25,563,036.85 15,830,477.68
Other 4,981,560.53
Net cash flows arising from operating
-4,436,980.35 1,930,932.76
activities
II. Significant investment and
financing activities that without cash --
flows:
Conversion of debt into capital
Convertible loan due within 1 year
Financing of fixed assets leased
3.Movement of cash and cash
-- --
equivalents：
Ending balance of cash 302,408,433.72 278,337,236.95
Less: Beginning balance of cash
278,337,236.95 268,646,588.18
equivalents
Add：End balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase of cash and cash
24,071,196.77 9,690,648.77
equivalent
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which： --
Of which： --
Of which： --
Other note：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Of which： --
Of which： --
Of which： --
Other note：
(4) Component of cash and cash equivalents
In RMB
104
Items Year-end balance Year-beginning balance
I. Cash 302,438,856.00 278,337,236.95
Including：Cash at hand 792.64 4,127.10
Demand bank deposit 302,407,641.08 271,085,025.10
Demand other monetary funds 7,248,084.75
III. Balance of cash and cash
302,408,433.72 278,337,236.95
equivalents at the period end
Other note：
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:
81. The assets with the ownership or use right restricted
In RMB
Book value at the end of the
Items Cause of restriction
reporting period
Fixed assets 243,106,926.00 Mortgage
Intangible assets 33,875,655.97 Mortgage
Total 276,982,581.97 --
Other note：
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 3,396,814.97 6.3757 21,657,073.20
Euro
HKD 806,319.92 0.8176 659,247.17
Yen 15,363,481.00 0.0554 851,136.85
Account payable -- --
Including：USD 9,987,772.57 6.3757 63,679,041.57
Euro
HKD
Prepayments
Including：USD 588,809.23 6.3757 3,754,071.01
Yen 30,197,869.00 0.0554 1,673,414.91
Other receivables
Including：USD 37,399.02 6.3757 238,444.93
accounts payable
Including：USD 4,122,038.21 6.3757 26,280,879.02
Yen 3,043,388,138.00 0.0554 168,649,353.67
Other payables
Including：USD 676,686.00 6.3757 4,314,346.93
Yen 3,381,984.00 0.0554 187,361.91
Euro 22,500.00 7.2197 162,443.25
105
Other note：
(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
Funding subsidy for
change and renovation of 720,241.51 Other income 142,255.72
old elevators
Textile special funds 142,857.09 Other income 142,857.16
Shenzhen Special Fund
Subsidy for Atmospheric
Environment Quality 442,000.00 Other income 52,000.00
Improvement- Shenzhen
Beauty Century
Subsidy for the technical
transformation project of
dyeing equipment by the 91,000.00 Other income 39,000.00
Bureau of Industry and
Information Technology
Subsidy funds for
industrialization project of 433,333.39 Other income 1,299,999.96
polarizers for TFT-LCD
Subsidy funds for the
narrow line (Line 5) of the
499,999.96 Other income 500,000.04
first-phase project of
polarizer for TFT-LCD
Amortization of subsidies
for purchase of imported 151,746.19 Other income 175,090.20
equipment and technology
Innovative and
entrepreneurial funds for
the first phase of the 49,999.94 Other income 50,000.04
TFT-LCD polarizer
project
Introducing advanced
14,388.09 Other income 14,388.12
technology funding
Innovation and 162,499.96 Other income 50,000.04
106
entrepreneurship funds of
Shenzhen Polarizing
Materials and Technology
Engineering Laboratory
Funding for technology
975,000.00 Other income 300,000.00
center construction
Shenzhen Polarizing
Materials and Technology 1,625,000.00 Other income 500,000.00
Engineering Laboratory
Subsidy fund for R&D
equipment of key
technology of optical 2,624,999.96 Other income 500,000.04
compensation film for
polarizer
Local matching funds for
the second phase of
9,750,000.00 Other income 1,500,000.00
TFT-LCD polarizer
project (Line 6)
Funds for the pilot project
of regional agglomeration
development of strategic 16,249,999.92 Other income 2,500,000.08
emerging industries in
Guangdong Province
Local matching funds for
the second phase of
6,500,000.00 Other income 1,000,000.00
TFT-LCD polarizer
project (Line 6)
Subsidies for new
production lines and
purchase of equipment for 19,500,000.00 Other income 3,000,000.00
the Phase II project of
polarizers for TFT-LCD
Innovative and
entrepreneurial funds for
the second phase of the 324,999.96 Other income 50,000.04
TFT-LCD polarizer
project (Line 6)
Investment funds within
the central budget of the
polarizer industrialization 28,750,000.00 Other income 1,250,000.00
project for super-large
TVs (Line 7)
Funding for key
technology research and
development of polarizers 1,983,333.33 Other income 16,666.67
for ultra-thin IPS
smartphone terminals
Shenzhen Municipal
Finance Committee
(2018N007 Major
6,000,000.00 Other income
Research and development
of key technologies for
high-performance
107
polarizers for large-size
display panels)
Shenzhen Special Fund
Subsidy for Atmospheric
Environment Quality 147,643.86 Other income 442,931.57
Improvement- SAPO
Photoelectric
Subsidies for investment
projects in special
technological
transformation for 159,916.67 Other income 19,000.00
technological
transformation and
doubling in 2020
Funding by Shenzhen
Municipal Bureau of
Finance 2020N028 Key
technology research and
2,500,000.00 Other income
development project of
low-color polarized
circular polarizer for
fixed-curvature AMOLED
Awards support by 2021
special major projects of
technological 10,662,333.32 Other income 367,666.68
transformation and
doubling
Subsidy funds for
Other income 27,172.70
energy-saving renovation
（2）Government subsidy return
□ Applicable √ Not applicable
Other note：
85.Other
(1) Arbitration matters between the Company and Jinjiang Group
At the end of 2016, the Company introduced Jinjiang Group as a strategic investor for the capital
increase and share expansion of SAPO Photoelectric. The Company, SAPO Photoelectric, Jinjiang
Group and Hangzhou Jinhang Equity Investment Fund Partnership (Limited Partnership), a limited
partnership established by the former Jinjiang Group as the actual controller, jointly signed the
Cooperation Agreement. Jinjiang Group made a commitment to the performance of SAPO
Photoelectric from 2017 to 2019, and Jinjiang Group promised that if the promised income and net
profit were not fulfilled, it would make a difference between the promised net profit and the actual
profit. In 2018 and 2019, Jinjiang Group failed to fulfill its performance commitments as agreed, and
the performance compensation in 2018 was received by the Company in 2019 as agreed, totaling RMB
197,268,700; For the performance compensation in 2019, Jinjiang Group believes that it can't lead the
operation and management of SAPO Photoelectric, which leads to the failure to realize the contractual
108
purpose of the Cooperation Agreement, and applies to Shenzhen Court of International Arbitration for
arbitration.
On March 25, 2021, the arbitration tribunal made the following ruling on this case: (I) The applicant is
exempted from the performance compensation obligation in 2019 agreed in Article 3.1 of the
Cooperation Agreement, and does not need to pay SAPO Photoelectric the compensation for the
performance difference in 2019 of RMB 244,783,800; (II) The arbitration fee of RMB 2,682,011 and
the actual expenses of the arbitrator of RMB 8,000 in this case shall be borne by the applicant; (III)
Other arbitration claims of the applicant are not supported. This award shall be final and take legal
effect from the date it is made.
(2) Shenzhen Xieli Automobile Enterprise Co., Ltd. (property not yet disposed of)
Shenzhen Xieli AutomobilCo., Ltd. is a Sino-foreign joint venture invested by the Company and Hong
Kong Xieli Maintenance Co. Ltd. in 1981, with a registered capital of RMB 3.12 million, 50% of
whose equity is held the Company. The operating period of the Company ended in 2008, and its
business license was revoked in 2014. The main assets of the Company are 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 Automobile 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 Automobile
Enterprise Co., Ltd. approved by Shenzhen Administration for Market Regulation.
V. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Net
Income of
profits of
Time and Recogniti acquiree
Cost Way to acquiree
place of Proportio on basis during the
gaining gain the Purchase during the
Name gaining n of stock of purchase
the stock stock date purchase
the stock rights purchase date to
rights rights date to
right date period-en
period-en
d
d
Other note：
（2）Combined cost and Goodwill
In RMB
Combined cost
Other note
109
(3) The identifiable assets and liabilities of acquiree at purchase date In RMB
In RMB
Fair value of the purchase date Book value of the purchase date
Other note
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair
value measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises
merger and gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair
value of liabilities of the acquiree at acquisition date or closing period of the merge
（6）Other note
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Not applicable
Other note：
(2) Combination cost
Not applicable
Other note：
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
Not applicable
Other note：
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
110
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost
control in reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.)
caused by other reasons and relevant information:
6.Other
VI. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Registered Business Share-holding ratio
Subsidiary Acquired way
operation place nature Directly Indirectly
Shenzhen Domestic
Lishi Industry trade, Establish
Shenzhen Shenzhen 100.00%
Development Property
Co., Ltd Management
Establish
Accommodati
Shenzhen on,
Huaqiang Shenzhen Shenzhen restaurants, 100.00%
Hotel business
center;
Shenzhen
Shenfang
Property Establish
Real Estate Shenzhen Shenzhen 100.00%
Management
Management
Co., Ltd.
Establish
Production of
Shenzhen
fully
Beauty
electronic
Century Shenzhen Shenzhen 100.00%
jacquard
Garment Co.,
knitting
Ltd.
whole shape
Shenzhen
Shenfang
Sungang Real Property Establish
Shenzhen Shenzhen 100.00%
Estate Management
Management
Co., Ltd.
111
Polarizer
SAPO
Shenzhen Shenzhen production 60.00%
Photoelectric
and sales
Shenzhen Establish
Polarizer
Shengjinlian
Shenzhen Shenzhen production 100.00%
Technology
and sales
Co., Ltd.
Shengtou
(Hongkong) Sales of Establish
Hongkong Hongkong 100.00%
Co.,Ltd. polarizer
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee, and holding more than
half voting rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation, the control basis is:
None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss
Holding proportion Dividend declared to Closing balance of
attributable to
Name of non-controlling non-controlling non-controlling
non-controlling
interest interest interest
interest
SAPO Photoelectric 40.00% 15,173,715.28 1,142,495,431.83
Other note：
None
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Subsi Curre Non-c Curre Non-c
Curre Non-c Total Curre Non-c Total
diarie Total nt urrent Total nt urrent
nt urrent liabili nt urrent liabili
s assets liabili Liabil assets liabili Liabil
assets assets ties assets assets ties
ties ities ties ities
SAPO
1,622, 2,581, 4,204, 521,12 827,06 1,348, 1,493, 2,177, 3,670, 399,97 452,17 852,14
Photo
715,94 716,14 432,09 7,167. 6,348. 193,51 320,59 130,75 451,34 5,943. 1,112. 7,055.
electri 7.38 8.26 5.64 55 51 6.06 0.48 6.68 7.16 39 38 77
c
In RMB
Amount of current period Amount of previous period
Total Cash flow Total Cash flow
Subsidiari
Operating comprehe from Operating comprehe from
es Net profit Net profit
revenue nsive operating revenue nsive operating
income activities income activities
SAPO 2,126,851, 37,934,288 37,934,288 -11,450,77 1,961,577, 16,768,253 16,768,253 -1,921,942.
112
Photoelect 011.63 .19 .19 1.90 740.37 .29 .29 93
ric
Other note：
None
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
Other note：
None
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
None
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's
equity of the parent company
Other note
None
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 Registration Nature of
treatment of
Subsidiary of Operation Place Business direct indirect investment in
associates
Joint
venture：
Shenzhen
Guanhua
Property Equity
Printing & Shenzhen Shenzhen 50.16%
leasing method
Dyeing
Co.,Ltd.
Anhui
Huapeng Manufacturin Equity
Anhui Anhui 50.00%
Textile Co., g method
Ltd.
113
Associated
enterprise
Shenzhen
Changlianfa
Property Equity
Printing and Shenzhen Shenzhen 40.25%
leasing method
dyeing
Company
Jordan
Manufacturin Equity
Garment Jordan Jordan 35.00%
g method
Factory
Yehui
Manufacturin Equity
International Hongkong Hongkong 22.75%
g method
Co., Ltd.
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from
the voting right ratio:
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:
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of Year-beginning balance/ Amount of
current period previous period
Shenzhen Guanhua Printing &
Dyeing Co.,Ltd.
Current assets 37,787,147.72 19,854,144.21
Non-current assets 228,639,403.03 241,137,964.49
Total assets 266,426,550.75 260,992,108.70
Current liabilities 18,194,214.40 12,261,343.60
Non-current liabilities 35,190,853.69 37,356,444.69
Total liabilities 53,385,068.09 49,617,788.29
Attributable to shareholders of the
213,041,482.67 211,374,320.41
parent company
Share of net assets calculated by
106,861,607.70 106,025,359.12
stake
--Goodwill 21,595,462.44 21,595,462.44
--Other 285,343.61 285,343.61
Operating income 21,404,639.29 14,623,800.97
Financial expenses -174,304.72 -39,339.28
Income tax expenses 499,490.10 -2,118,023.83
Net profit 614,155.44 -3,422,861.88
Total comprehensive income 614,155.44 -3,422,861.88
Other note
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Other note
114
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of Year-beginning balance/ Amount of
current period previous period
Joint venture： -- --
Total amount of the pro rata
-- --
calculation of the following items
Associated enterprise： -- --
Total amount of the pro rata
-- --
calculation of the following items
Other note
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer
funds to the Company
(6) The excess loss of joint venture or associated enterprise
Other note
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
VII. Risks Related to Financial Instruments
VIII. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value Fir value
Items
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair
-- -- -- --
value measurement
II Inconsistent fair
-- -- -- --
value measurement
115
IX. Related parties and related-party transactions
1.Parent company information of the enterprise
The parent
The parent
Registered Registered company of the
Name Nature company of the
address capital Company's
Company’s vote
shareholding
ratio
ratio
18/F, Investment Equity
Shenzhen
Investment Building, Shennan
investment ,
Holdings Real-estate 2,800,900.00 46.21% 46.21%
Co.,Ltd. Road, Futian Development
and Guarantee
District, Shenzhen
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
For details of the subsidiary of the Company, see "Section X Financial Report IX. Interests in
other subjects
3. Information on the joint ventures and associated enterprises of the Company
For important joint ventures or joint ventures of the Company, see the notes to the joint venture
and joint ventures of the Company. See " Section X Financial Report IX. Interests in other
entities.
Other note
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
Suzhou Advantage Ford Investment Center (Limited
The controlling party of SAPO Shareholder
partnership)
Shengto (HK) Co., Ltd. The Company Executives are Director of the company
Sharing Company of Suzhou Advantage Ford
Hengmei Photoelectric Co., Ltd.
Investment Center (Limited partnership)
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
116
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Other note
None
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Content of
Amount of Amount of Over the trading Amount of last
Related parties related
limit or not? period
transaction
current period previous period
Hengmei
Technical
Photoelectric 0.00 0.00 No 1,415,263.58
service
Co., Ltd.
Hengmei
Photoelectric Polarized 0.00 0.00 No 204,282,036.36
Co., Ltd.
Related transactions on sale goods and receiving services
In RMB
Amount of current Amount of previous period
Related party Content
period
Shenzhen Tianma
Polarized 1,441,975.42 1,485,995.60
Microelectronics Co., Ltd.
Hengmei Photoelectric
Polarized 0.00 110,545,214.28
Co., Ltd.
Note
None
(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 409,127,400.00 September 8,2020 No
The Company is the secured party
Not applicable
117
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
The annual lending
Printing & Dyeing 3,806,454.17 July 30,2019
interest rate is 0.30%
Co., Ltd.
Loaned
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
1,152,800.00 9,175,000.00
personnel
(8) Other related transactions
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Bad debt
Balance of Book Balance of Book Balance of Book
Provision
Shenzhen
Account Tianma
receivable Microelectronics 412,495.18 18,686.03 581,696.96 25,652.84
Co., Ltd.
Hengmei
Account
Photoelectric 0.00 0.00 20,879,229.37 920,774.02
receivable
Co., Ltd.
Anhui Huapeng
Other Account
Textile 0.00 0.00 1,800,000.00 1,800,000.00
receivable
Company
Shenzhen
Other Account Dailishi
Underwear Co., 1,100,000.00 55,000.00 0.00 0.00
receivable
Ltd.
（2）Payables
In RMB
118
Name Related party Amount at year end Amount at year beginning
Hengmei Photoelectric
Account payable 170,977.53 35,787,643.44
Co., Ltd.
Shenzhen Xinfang
Other payable 244,789.85 244,789.85
Knitting Co., Ltd.
Shenzhen Changlianfa
Other payable Printing & dyeing Co., 2,023,699.95 1,580,949.95
Ltd.
Yehui International
Other payable 1,124,656.60 1,143,127.81
Co.,Ltd.
Other payable Shengtou （Hongkong）
315,000.00 315,000.00
Co., Ltd.
Shenzhen Guanhua
Other payable Printing & dyeing Co., 3,806,454.17 3,811,240.92
Ltd.
7. Related party commitment
None
8.Other
None
X. Share payment
1. Overall situation of share payment
√ Applicable □Not applicable
In RMB
Total amount of various equity instruments granted by the
0.00
company during the current period
Total amount of various equity instruments that the company
0.00
exercises during the period
Total amount of various equity instruments that have expired in
1,250,430.00
the current period
The scope of executive price of the company’s outstanding share
options at the end of the period and the remaining term of the 0 yuan，0 year
contract
The scope of executive price of the company’s other equity
instruments at the end of the period and the remaining term of 5.73 /yuan/share，1 year
the contract
Other note
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 4,752,300 restricted shares to the
119
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
The first restriction lifting growth rate of operating revenue in 2018 compared with 2016 is not less than 70%,
period and is not lower than the 75 fractiles level of comparable listed companies in the same
industry; in 2018, the proportion of optical film business such as polarizers to
operating revenue is no less than 70%.
In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than
the 75 fractiles level of the comparable listed companies in the same industry; the
The second restriction growth rate of operating revenue in 2019 compared with 2016 is not less than 130%,
lifting period and is not lower than the 75 fractiles level of comparable listed companies in the same
industry; in 2019, the proportion of optical film business such as polarizers to
operating revenue is not less than 75%.
In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower
than the 75 fractiles level of comparable listed companies in the same industry; the
The third restriction lifting growth rate of operating revenue in 2020 is not less than 200% compared to 2016, and
period is not lower than the 75 fractiles level of comparable listed companies in the same
industry. In 2020, the proportion of optical film business such as polarizers to
operating revenue will be no less than 80%.
Note: Earnings per share=net profit/total capital stock attributable to common shareholders of
the Company upon deduction of non-recurring profit and loss.
On 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; It was agreed that the Company repurchase and cancel 6,000 restricted shares held by one
original incentive object who had failed to meet the incentive conditions due to retirement at 6.23
yuan/share.
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 The closing price of the company's stock on grant date
instruments on the grant date - grant price
On each balance sheet date of the waiting period, it is
Determination basis of the number of vesting equity
determined based on the latest information such as the
instruments
change in the number of people that can be released
120
from restrictions and the completion of performance
indicators
Reasons for the significant difference between the current
None
period estimate and the previous period estimate
Equity-settled share-based payment is included in the
0.00
accumulated amount of capital reserve
Total amount of fees confirmed by equity-settled
0.00
share-based payments in the current period
Other note
None
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XI. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of December 31,2021,The company does not disclose the pension plan undisclosed matter should
exist.
2. Contingency
(1) Significant contingency at balance sheet date
As of December 31,2021,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
121
XII. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
None
4. Notes of other significant events
As of December 31,2021,The company does not disclose the pension plan undisclosed matter should
exist.
XIII. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
(2) Prospective application
2. Liabilities restructuring
None
3. Replacement of assets
(1) Non-monetary assets exchange
None
(2) Other assets exchange
None
4. Pension plan
None
122
5. Discontinuing operation
None
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 Offset between
Items Polarizer Textile Trade Total
and other divisions
Operating
2,117,717,019.48 129,445,842.10 55,169,650.79 -8,584,620.31 2,293,747,892
income
Including:
revenue from
2,117,717,019.48 121,098,294.00 54,932,578.58 0.00 2,293,747,892
foreign
transaction
Revenue from
inter-segment 0.00 8,347,548.10 237,072.21 -8,584,620.31 -8,584,620
transactions
Including:
revenue from main 2,099,489,550.77 114,363,911.23 55,169,650.79 -3,032,482.89 2,265,990,629
business
Operating cost 1,828,378,235.90 38,998,238.06 48,686,874.43 -7,543,935.11 1,908,519,413
Including: main
1,828,378,235.90 26,709,964.52 48,686,874.43 -3,527,746.06 1,900,247,328
business cost
Operating profit 28,041,538.58 53,280,168.22 815,378.80 -15,576,656.93 73,511.20 66,633,939
Total assets 4,204,357,864.87 3,296,896,012.57 46,233,785.98 -2,050,840,555.59 5,496,647,107
Total
1,380,985,834.98 211,828,635.06 27,995,367.47 -87,991,976.75 1,532,817,860
indebtedness
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments
cannot be disclosed, explain the reason
None
123
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
None
8.Other
None
XIV. 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
Bad debt Bad debt
Book balance Book balance
provision provision
Category Book Book
Propor Propor Propor Propor
Amou Amou value Amou Amou value
tion(% tion(% tion(% tion(%
nt nt nt nt
) ) ) )
Including：
Accrual of bad 8,353,
100.0 417,6 7,935, 1,538, 100.00 76,915 1,461,40
debt provision by 590.7 5.00% 5.00%
0% 79.54 911.24 316.00 % .80 0.20
portfolio 8
Including：
8,353,
100.0 417,6 7,935, 1,538, 100.00 76,915 1,461,40
Total 590.7 5.00% 5.00%
0% 79.54 911.24 316.00 % .80 0.20
8
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: 417,679.54 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 6,815,274.78 340,763.74 5.00%
1-2 years 1,538,316.00 76,915.80 5.00%
Total 8,353,590.78 417,679.54 --
Accrual of bad debt provision by portfolio
In RMB
RMB
Closing balance
Name
Book balance Bad debt provision Proportion
124
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） 6,815,274.78
1-2 years 1,538,316.00
2-3 years 0.00
Over 3 years 0.00
3-4 years 0.00
Total 8,353,590.78
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or Closing
Category
balance Accrual collected Write-off Other balance
amount
76,915.80 340,763.74 417,679.54
Total 76,915.80 340,763.74 417,679.54
Total 76,915.80 66,116.12 143,031.92
Where the significant amount of the reserve for bad debt recovered or reversed:
In RMB
Name Amount Mode
None
(3) The actual write-off accounts receivable
In RMB
Items Amount
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Closing balance Proportion % Balance of Bad debt
provision
Shenzhen Guangsheng
Development Industry 5,610,352.81 67.16% 280,517.64
Co., Ltd.
Shenzhen Beauty Century
Garment Co., Ltd. 2,485,076.00 29.75% 124,253.80
Shenzhen Yuehao Hotel
245,621.97 2.94% 12,281.10
Management Co., Ltd.
Cao Cheng 9,300.00 0.11% 465.00
Ma Yue 3,240.00 0.04% 162.00
Total 8,353,590.78 100.00% --
125
(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 14,383,631.68 7,450,934.40
Total 14,383,631.68 7,450,934.40
（1）Interest receivable
1）Category of interest receivable
In RMB
Items Closing balance Opening balance
2) Significant overdue interest
I n RMB
Whether or not the
Balance in Reasons for impairment and the
Items) Aging
year-end non-recovery basis for its
determination
Other note：
3）Bad-debt provision
√Applicable □ Not applicable
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss for the entire
Bad debt provision Total
losses over the over life (no credit duration (credit
next 12 months impairment) impairment
occurred)
Balance as at
January 1,2021 In —— —— —— ——
current
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
126
(2)Dividend receivable
1) Category of Dividend receivable
(2)Dividend receivable
1) Category of Dividend receivable
In RMB
Items Closing balance Opening balance
2) Significant dividends receivable with age exceeding 1 year
I n RMB
Whether or not the
Balance in Reasons for impairment and the
Items) Aging
year-end non-recovery basis for its
determination
3）Bad-debt provision
√Applicable □ Not applicable
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss
Bad debt provision for the entire duration Total
losses over the over life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at
1,018,014.39 15,111,246.32 16,129,260.71
January 1,2021
Balance as at
January 1,2021 In —— —— —— ——
current
Provision in the
369,750.00 369,750.00
current period
Balance as at
1,387,764.39 15,111,246.32 16,499,010.71
December 31,2021
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other note：
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Other receivable 14,383,631.68 7,450,934.40
Total 14,383,631.68 7,450,934.40
2）Bad-debt provision
127
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Expected credit Expected credit loss
Bad Debt Reserves for the entire duration Total
losses over the over life (no credit
(credit impairment
next 12 months impairment)
occurred)
Balance as at
1,018,014.40 15,111,246.32 16,129,260.71
January 1,2021
Balance as at
January 1,2021 In —— —— —— ——
current
Provision in the
369,750.00 369,750.00
current period
Balance as at
1,387,764.39 15,111,246.32 16,499,010.71
December 31,2021
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） 15,603,247.29
1-2 years 0.00
2-3 years 234,716.25
Over 3 years 15,044,678.85
3-4 years 328,819.35
4-5 years 454,759.77
Over 5 years 14,261,099.73
Total 30,882,642.39
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening Reversed or
Category Closing balance
balance Accrual collected Write-off Other
amount
Internal current 877,680.0
365,000.00 1,242,680.00
account 0
Deposit 5,000.00 5,000.00
Other 1,260.00 122.36 1,382.36
15,245,32
Unit account 4,627.64 15,249,948.35
0.71
16,129,26
Total 369,750.00 16,499,010.71
0.71
Where the significant amount of the provision for bad debt recovered or reversed
In RMB
Name Amount Mode
128
4) Accounts receivable actually written off in the reporting period
In RMB
Items Amount
Of which the significant amount of the reversed or collected part during the reporting period :
In RMB
Whether the
Verification money is
Name Nature Amount Reason procedures generated by
performed related party
transactions
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears
party
In RMB
Portion in total Bad debt
Year-end
Name Nature Age other provision of
balance
receivables(%) year-end balance
Shenzhen Beauty
Internal current
Century Garment 14,475,600.00 1-3 years 46.87% 1,242,680.00
account
Co., Ltd.
Jiangxi Xuanli
Unit account 11,389,044.60 Over 5 years 36.88% 11,389,044.60
Thread Co., Ltd.
Anhui Huapeng
Unit account 1,800,000.00 Over 5 years 5.83% 1,800,000.00
Textile Company
Shenzhen Dailisi
Underwear Co., Unit account 1,100,000.00 Within 1 year 3.56% 55,000.00
Ltd
Shenzhen Xieli
Automobile Unit account 1,018,295.37 2-5 years 3.30% 1,018,295.37
Repair Plant
Total -- 29,782,939.97 -- 96.44% 15,505,019.97
6) Accounts receivable involved with government subsidies
In RMB
Name of the Time, amount and
Name government subsidy Year-end balance Aging basis of the expected
project collection
The company has no government subsidies receivable.
7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of
other accounts receivable
Other note：
129
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 1,972,630,835 1,956,048,206 1,972,630,835 1,956,048,206
16,582,629.30 16,582,629.30
in subsidiaries .39 .09 .39 .09
Investments
in associates 133,022,325.7 133,022,325.7 147,929,137.2 147,929,137.2
0.00 0.00
and joint 7 7 3 3
ventures
2,105,653,161 2,089,070,531 2,120,559,972 2,103,977,343
16,582,629.30 16,582,629.30
Total .16 .86 .62 .32
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period Closing
Opening Withdrawn Closing balance of
Name Add Decreased
balance impairment Other balance impairment
investment investment
provision provision
SAPO
1,910,247,7 1,910,247,7 14,415,288.
Photoelectri
81.94 81.94 09
c
Shenzhen
Lisi
8,073,388.2 8,073,388.2
Industrial
5 5
Developmen
t Co., Ltd.
Shenzhen
Beauty
14,696,874. 14,696,874. 2,167,341.2
Century
34 34 1
Garment
Co., Ltd.
Shenzhen
15,489,351. 15,489,351.
Huaqiang
08 08
Hotel
Shenzhen
Shenfang
1,713,186.5 1,713,186.5
Real Estate
5 5
Management
Co., Ltd.
Shenzhen
Shenfang
Sungang 5,827,623.9 5,827,623.9
Real Estate 3 3
Management
Co., Ltd.
1,956,048,2 1,956,048,2 16,582,629.
Total
06.09 06.09 30
130
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Adjust Closin
ment g
Declar Withdr
Openi of Closin balanc
Decrea Gain/l Other ation awn
ng Add other g e of
Name sed oss of equity of cash impair
balanc invest compr Other balanc impair
invest Invest change divide ment
e ment ehensi e ment
ment ment s nds or provisi
ve provisi
profit on
incom on
e
I. Joint ventures
Anhui
Huape
10,797 10,797
ng
,023.1 ,023.1
Textile
4 4
Co.,Lt
d.
Shenz
hen
Guanh
ua 127,90 128,21
308,06
Printin 6,165. 4,225.
0.37
g& 17 54
Dyein
g Co.,
Ltd.
138,70 10,797 128,21
Subtot 308,06
3,188. ,023.1 4,225.
al 0.37
31 4 54
II. Associated enterprises
Shenz
hen
Changl
ianfa
2,706, 265,94 2,972,
Printin
262.38 0.59 202.97
g and
dyeing
Compa
ny
Jordan
Garne
nt
Factor
y
Yehui
Interna
6,519, -540,0 -199,0 3,944, 1,835,
tional
686.54 16.30 63.73 709.25 897.26
Co.,
Ltd.
Subtot 9,225, -274,0 -199,0 3,944, 4,808,
al 948.92 75.71 63.73 709.25 100.23
131
147,92 133,02
Total 9,137. 2,325. 0.00
23 77
（3）Other note
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
74,272,555.42 7,660,814.11 57,649,817.53 7,019,203.76
Business
Other Business
3,887,130.77 3,887,130.77 3,647,070.68 3,647,070.68
income
Total 78,159,686.19 11,547,944.88 61,296,888.21 10,666,274.44
Income-related information:
In RMB
Type Division 1 Division 2 Total
Of which：
Of which：
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: 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
Income from long-term equity
investment measured by adopting the 18,304,138.91
Cost method
Income from long-term equity
investment measured by adopting the 33,984.66 -3,446,613.86
equity method
Investment income from the disposal
20,779.93
of long-term equity investment
Dividend income earned during
investment holdings in other equity 1,659,743.65 1,995,042.32
instruments
Structured deposit interest 4,036,968.43 14,919,678.58
Net monetary gains 14,657,621.81 3,884,233.70
132
Total 20,409,098.48 35,656,479.65
6.Other
XV. 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 -961,982.35
Government subsidy recognized in
current gain and loss(excluding those Other benefits of government
closely related to the Company’s 19,643,379.33 subsidies that are confirmed related
business and granted under the state’s to the main business.
policies)
Switch back of provision for
depreciation of account receivable
989,313.04
which was singly taken depreciation
test.
Other non-business income and
19,964,046.87
expenditures other than the above
Less :Influenced amount of income
6,025,891.12
tax
Influenced amount of minor
13,096,494.74
shareholders’ equity (after tax)
Total 20,512,371.03 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
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
Weighted average returns
Profit of report period Basic earnings per Diluted earnings per
equity(%)
share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders 2.24% 0.12 0.12
of Company.
Net profit attributable to the
Common stock shareholders
1.46% 0.08 0.08
of Company after deducting
of non-recurring gain/loss.
133
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 acco
unting standards. If the data that has been audited by an overseas audit institution is adjusted for diff
erences, the name of the overseas institution should be indicated
None
4.Other
None
Shenzhen Textile (Holdings) Co., Ltd.
March 15, 2022
134
