Shenzhen Textile (Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Contents
Auditor's Report
Consolidated and Company Balance sheet
Consolidated and Company Income statement
Consolidated and Company cash flow statement
Consolidated and Company Statement on Change in Owners’ Equity
Notes to Financial statements
1
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Auditor’ s Report
DeShiReport(Shen)Zi(24)No. P02833
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, 2023, 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, 2023 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 polarizer sales revenue
As mentioned in Note (V) 40 to the financial statement, in 2023 the operating income reported in the consolidated financial
statement of Shenzhen Textile Group was RMB3,079,678,375.45, of which the sales revenue of polarizers was RMB 2,885,625,542.77,
accounting for 93.70% of the total operating income. The sales revenue of Shenzhen Textile Group's polarizer is recognized when the
customer obtains control of the relevant goods. Due to the importance of polarizer sales revenue to the consolidated financial statement as
a whole, and the revenue is one of the key performance indicators of Shenzhen Textile Group, there is an inherent risk that management
will manipulate revenue recognition in order to achieve specific objectives or expectations, therefore, we have identified the recognition of
polarizer sales revenue as a key audit matter for the audit of the consolidated financial statement.
In response to the above key audit matter, the audit procedures we implement mainly include:
Test and evaluate the internal control of the revenue-related business of Shenzhen Textile Group.
Examine sales contracts with key customers, identify contractual terms and conditions related to the transfer of control of goods, and
assess whether the accounting policies for revenue recognition comply with the requirements of accounting standards for business
enterprises
Perform revenue analysis procedures by production line, product type and customer, and analyze the rationality of revenue changes
based on market and other factors.
Samples are taken to perform detailed tests on sales revenue, check supporting documents such as invoices, outbound delivery orders,
and receipts related to revenue recognition, and verify the sales of major customers by letter of confirmation and evaluate the authenticity of
polarizer sales revenue recognition.
Select samples of sales transactions before and after the balance sheet date, check the supporting documents such as invoices,
outbound delivery orders, and receipts, and evaluate whether the revenue is recorded in the appropriate accounting period.
2. Impairment of polarizer inventory
As mentioned in Note (V) 8 to the financial statement, as of December 31, 2023, the inventory book balance reported in the
consolidated financial statement of Shenzhen Textile Group was RMB852,104,157.04, of which the book balance of polarizer inventory was
RMB838,447,375.39 accounting for 98.40% of the total inventory, and the corresponding inventory decline reserve was
RMB107,290,039.96. In accordance with the Group's accounting policy, inventories are measured at the lower of cost or net realizable value
at the end of the year, and when the net realizable value of inventories is lower than cost, a provision is made for inventory price declines. As
the provision for inventory declines involves significant management estimates, we have identified the impairment of polarizer inventories
as a key audit matter in the audit of the consolidated financial statement.
In response to the above key audit matter, the audit procedures we implement mainly include:
Test and evaluate the design and implementation of internal controls related to inventory impairment;
Implement inventory on-site monitoring procedures, check the check-count quantity of inventory on a sampling basis, and observe the
status of inventory to evaluate the inventory quantity and condition at the balance sheet date;
Evaluate the reasonableness of management's methodology for accruing provisions for inventory declines and the important
assumptions and parameters used to calculate net realizable value;
IV. Other information
-1-
The management of the Company is responsible for the other information. The other information comprises information of the
Company's annual report in 2023, 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 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.
Deloitte Touche Tohmatsu CPA Ltd.(special general partnership) Chinese C.P.A.
（Project Partner)
Shanghai China
Chinese C.P.A.
March 26, 2024
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated balance sheet
December 31,2023
Consolidated balance sheet
In RMB
Items Note December 31,2023 December 31,2022
Current asset：
Monetary fund (V).1 472,274,448.00 991,789,968.19
Transactional financial assets (V).2 821,946,114.68 319,605,448.44
Note receivable (V).3 50,963,943.01 74,619,100.26
Account receivable (V.).4 820,134,833.95 636,583,469.93
Financing of receivables (V.).5 22,839,459.13 54,413,796.91
Prepayments (V).6 19,499,886.80 18,391,444.67
Other account receivable (V).7 3,220,285.42 10,585,975.38
Including：Interest receivable - -
Dividend receivable - -
Inventories (V).8 736,392,172.27 558,447,648.77
Other current asset (V.).9 60,773,457.39 69,535,531.24
Total of current assets 3,008,044,600.65 2,733,972,383.79
Non-current assets：
Long term share equity investment (V.).10 127,682,020.70 134,481,835.74
Other equity instruments investment (V)..11 145,988,900.00 167,678,283.27
Real estate investment (V.).12 125,603,207.18 126,315,834.76
Fixed assets (V.).13 2,066,006,237.73 2,240,221,656.36
Construction in progress (V.).14 31,307,060.74 38,061,619.60
Use right assets (V).15 11,999,466.57 15,365,393.88
Intangible assets (V).16 39,564,422.80 44,192,571.95
Goodwill (V).17 - -
Long-germ expenses to be amortized (V.).18 3,503,660.94 4,470,957.79
Deferred income tax asset (V).19 60,605,365.42 69,823,814.29
Other non-current asset (V).20 29,517,420.71 42,553,016.47
Total of non-current assets 2,641,777,762.79 2,883,164,984.11
Total of assets 5,649,822,363.44 5,617,137,367.90
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated balance sheet(Continued)
In RMB
Note December 31,2023 December 31,2022
Current liabilities：
Short-term loans (V).22 8,000,000.00 7,000,000.00
Notes payable (V).23 31,049,291.49 -
Account payable (V).24 408,548,136.24 327,049,873.70
Advance receipts (V).25 1,450,096.30 1,393,344.99
Contract liabilities (V).26 1,436,943.34 4,274,109.40
Employees’ wage payable (V).27 56,437,162.09 61,166,444.90
Tax payable (V).28 4,340,895.14 8,897,312.51
Other account payable (V).29 184,528,344.55 197,345,455.37
Including：Interest payable - -
Dividend payable - -
Non-current liability due within 1 year (V).30 108,102,752.99 104,183,438.22
Other current liability (V).31 80,082,477.22 92,945,741.78
Total of current liability 883,976,099.36 804,255,720.87
Non-current liabilities：
Long-term loan (V).32 505,578,314.56 607,421,585.00
Lease liability (V).33 6,687,317.22 8,628,672.71
Deferred income (V).34 97,485,986.89 117,814,796.10
Deferred income tax liability (V).19 44,177,287.45 47,974,267.80
Total non-current liabilities 653,928,906.12 781,839,321.61
Total of liability 1,537,905,005.48 1,586,095,042.48
Owners’ equity
Share capital (V).35 506,521,849.00 506,521,849.00
Capital reserves (V).36 1,961,599,824.63 1,961,599,824.63
Other comprehensive income (V).37 93,607,380.81 109,596,609.31
Special reserve (V)..38 104,262,315.64 100,909,661.32
Retained profit (V).39 216,160,896.14 170,636,610.95
Total of owner’s equity belong to the parent company 2,882,152,266.22 2,849,264,555.21
Minority shareholders’ equity 1,229,765,091.74 1,181,777,770.21
Total of owners’ equity 4,111,917,357.96 4,031,042,325.42
Total of liabilities and owners’ equity 5,649,822,363.44 5,617,137,367.90
The notes are integral parts of the financial statements
_____________________ ______________________ ______________________
Legal Representative: Person-in-charge of the accounting work：Person-in -charge of the accounting organ：
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Parent Company Balance Sheet
In RMB
Note December 31,2023 December 31,2022
Current asset：
Monetary fund 9,125,800.27 426,042,455.28
Transactional financial assets 741,243,309.42 319,605,448.44
Account receivable (XVI).、1 12,671,623.65 15,643,024.11
Prepayments - -
Other account receivable (XVI).2 14,013,552.95 14,132,756.62
Including：Interest receivable - -
Dividend receivable - -
Inventories 32,814.05 26,237.85
Total of current assets 777,087,100.34 775,449,922.30
Non-current assets：
Long term share equity investment (XVI).3 2,087,532,810.79 2,092,431,333.83
Other equity instruments investment 131,185,500.00 151,618,842.39
Real estate investment 102,430,682.27 101,190,712.85
Fixed assets 2,522,229.44 11,346,585.35
Construction in progress 191,875.56 308,243.90
Deferred income tax asset - -
Other non-current asset 27,823,005.45 25,997,082.15
Total of non-current assets 2,351,686,103.51 2,382,892,800.47
Total of assets 3,128,773,203.85 3,158,342,722.77
Current liabilities
Account payable 411,743.57 411,743.57
Advance receipts 540,673.07 691,160.58
Employees’ wage payable 15,810,919.71 18,510,589.33
Tax payable 3,115,369.56 7,121,466.14
Other account payable 106,722,393.87 113,736,371.24
Including：Interest payable - -
Dividend payable - -
Total of current liability 126,601,099.78 140,471,330.86
Non-current liabilities：
Deferred income 200,000.00 300,000.00
Deferred income tax liability 40,855,186.12 44,363,868.30
Total non-current liabilities 41,055,186.12 44,663,868.30
Total of liability 167,656,285.90 185,135,199.16
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Capital reserves 1,577,392,975.96 1,577,392,975.96
Other comprehensive income 83,629,830.81 98,855,668.75
Surplus reserves 104,262,315.64 100,909,661.32
Retained profit 689,309,946.54 689,527,368.58
Total of owners’ equity 2,961,116,917.95 2,973,207,523.61
Total of liabilities and owners’ equity 3,128,773,203.85 3,158,342,722.77
The notes are integral parts of the financial statements
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated Income statement
In RMB
Note Year 2023 Year 2022
1.Operating Revenue (V).40 3,079,678,375.45 2,837,988,264.36
Less: Operating cost (V).40 2,561,631,844.53 2,374,005,896.43
Business tax and surcharge (V).41 9,293,623.13 7,907,126.91
Sales expense (V).42 34,195,670.61 35,962,529.35
Administrative expense (V).43 134,371,410.53 128,388,940.29
R & D costs (V).44 104,653,040.92 80,520,155.54
Financial expenses (V).45 24,399,501.16 12,943,606.57
Including：Interest expense 27,339,804.17 31,131,112.38
Interest income 12,947,471.64 8,327,248.75
Add: Other income (V).46 50,740,363.91 26,350,210.89
Investment gain (V).47 10,828,635.56 19,383,351.87
Incl: investment gains from affiliates (6,898,983.89) 1,307,639.15
Financial assets measured at amortized cost cease to be recognized as
- -
income
Changing income of fair value (V).48 2,151,780.82 -
Credit impairment loss (V).49 4,535,775.14 (4,618,553.09)
Impairment loss of assets (V.).50 (126,089,709.42) (202,573,465.84)
Assets disposal income (v).51 1.72 31,264.60
II. Operating profit 153,300,132.30 36,832,817.70
Add：Non-Operating income (V).52 1,449,879.26 14,993,082.57
Less：Non-Operating expenses (V).53 8,205,801.51 7,477,057.47
III. Total profit 146,544,210.05 44,348,842.80
Less：Income tax expenses (V).54 19,407,731.47 (67,443,123.52)
IV. Net profit 127,136,478.58 111,791,966.32
(I) Classification by business continuity
1.Net continuing operating profit 127,136,478.58 111,791,966.32
2.Termination of operating net profit - -
(II) Classification by ownership
Including：Net profit attributable to the owners of parent
79,268,250.45 73,309,182.94
company
Minority shareholders’ equity 47,868,228.13 38,482,783.38
V. Net after-tax of other comprehensive income (V).37 (15,870,135.10) (10,204,603.14)
Net of profit of other comprehensive income attributable to ow
(15,989,228.50) (10,085,509.74)
ners of the parent company.
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting (16,267,037.45) (10,058,739.46)
period
1.Re-
measurement of defined benefit plans of changes in net deb - -
t or net assets
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
2.Other comprehensive income under the equity method in
- -
vestee can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
(16,267,037.45) (10,058,739.46)
instruments
4. Changes in the fair value of the company’s credit risks - -
(II)Other comprehensive income that will be reclassified into profi
277,808.95 (26,770.28)
t or loss.
1.Other comprehensive income under the equity method investee c - -
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
178,640.10 (178,640.10)
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 99,168.85 151,869.82
7.Other - -
Net of profit of other comprehensive income attributable to Mi
119,093.40 (119,093.40)
nority shareholders’ equity
VI. Total comprehensive income 111,266,343.48 101,587,363.18
Total comprehensive income attributable to the owner of the
63,279,021.95 63,223,673.20
parent company
Total comprehensive income attributable minority shareholders 47,987,321.53 38,363,689.98
VII. Earnings per share
Basic earnings per share 0.16 0.14
The notes are integral parts of the financial statements
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Income statement of the Parent Company
In RMB
Note Year 2023 Year 2022
I.Operating revenue (XVI).4 77,822,508.75 56,046,883.88
Less：Operating cost (XVI).4 9,822,306.53 9,544,956.96
Business tax and surcharge 3,193,559.74 2,296,709.15
Sales expense 233,086.71 106,542.65
Administrative expense 46,901,768.72 46,419,746.13
Financial expenses (3,418,990.44) (5,381,252.49)
Including：Interest expenses 356,264.79 6,601.33
Interest income 3,838,789.68 5,369,095.59
Add：Other income 153,012.52 269,698.97
Investment gain (XVI).5 19,300,515.95 18,656,000.37
Including: investment gains from affiliates (6,898,983.89) 1,307,639.15
Financial assets measured at amortized cost cease to be recognized
- -
as income
Changing income of fair value 2,151,780.82 -
Credit impairment loss 708,847.28 940,005.04
Impairment loss of assets - -
Assets disposal income - -
II.Operating profit 43,404,934.06 22,925,885.86
Add：Non-operating income 6,431.44 6,004,050.33
Less：Non-operating expenses 59,123.40 100,500.00
III. Total profit 43,352,242.10 28,829,436.19
Less：Income tax expenses 9,825,698.88 2,191,277.71
IV. Net profit 33,526,543.22 26,638,158.48
1.Net continuing operating profit 33,526,543.22 26,638,158.48
2.Termination of operating net profit - -
V. Net after-tax of other comprehensive income (15,225,837.94) (9,906,869.64)
（I）Other comprehensive income items that will not be
(15,325,006.79) (10,058,739.46)
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net - -
assets
2.Other comprehensive income under the equity method investee c
- -
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
(15,325,006.79) (10,058,739.46)
instruments
4. Changes in the fair value of the company’s credit risks - -
5.Other - -
(II)Other comprehensive income that will be reclassified into profi 99,168.85 151,869.82
t or loss
1.Other comprehensive income under the equity method investee c - -
an be reclassified into profit or loss.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
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 99,168.85 151,869.82
7.Other - -
VI. Total comprehensive income 18,300,705.28 16,731,288.84
The notes are integral parts of the financial statements
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated Cash flow statement
In RMB
Note Year 2023 Year 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 2,985,794,229.99 3,046,091,280.79
Tax returned 5,073,509.20 113,982,534.22
Other cash received from business operation (V).55(1) 87,277,323.90 218,296,299.96
Sub-total of cash inflow 3,078,145,063.09 3,378,370,114.97
Cash paid for purchasing of merchandise and services 2,466,252,261.73 2,453,492,479.82
Cash paid to staffs or paid for staffs 255,045,680.87 253,460,171.00
Taxes paid 54,636,406.53 59,230,421.14
Other cash paid for business activities (V).55(1) 117,443,974.16 121,948,492.41
Sub-total of cash outflow from business activities 2,893,378,323.29 2,888,131,564.37
Net cash generated from /used in operating activities (V).56(1) 184,766,739.80 490,238,550.60
II. Cash flow generated by investing
Cash received from investment retrieving - 28,500,000.00
Cash received as investment gains 13,769,440.75 18,075,712.72
Net cash retrieved from disposal of fixed assets, intangible assets,
11,634.84 101,301.53
and other long-term assets
Net cash received from disposal of subsidiaries or other
- -
operational units
Other investment-related cash received (V).55(2) 1,454,000,000.00 1,316,000,000.00
Sub-total of cash inflow due to investment activities 1,467,781,075.59 1,362,677,014.25
Cash paid for construction of fixed assets, intangible assets
64,069,967.97 123,210,891.17
and other long-term assets
Cash paid as investment - 1.00
Net cash received from subsidiaries and other operational
- -
units
Other cash paid for investment activities (V).55(2) 1,840,500,000.00 1,140,433,371.49
Sub-total of cash outflow due to investment activities 1,904,569,967.97 1,263,644,263.66
Net cash flow generated by investment (436,788,892.38) 99,032,750.59
III.Cash flow generated by financing
Cash received as investment - -
Including: Cash received as investment from minor shareholders - -
Cash received as loans 8,000,000.00 73,230,492.79
Other financing –related cash received - -
Sub-total of cash inflow from financing activities 8,000,000.00 73,230,492.79
Cash to repay debts 103,387,387.94 26,642,157.50
Cash paid as dividend, profit, or interests 57,324,944.21 56,596,142.54
Including: Dividend and profit paid by subsidiaries to minor
- -
shareholders
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Other cash paid for financing activities (V).55(3) 8,776,024.71 9,144,572.43
Sub-total of cash outflow due to financing activities 169,488,356.86 92,382,872.47
Net cash flow generated by financing (161,488,356.86) (19,152,379.68)
IV. Influence of exchange rate alternation on cash and cash
456,132.31 1,947,479.23
equivalents
V.Net increase of cash and cash equivalents (V).56(1) (413,054,377.13) 572,066,400.74
Add: balance of cash and cash equivalents at the beginning of
(V).56(2) 874,474,834.46 302,408,433.72
term
VI ..Balance of cash and cash equivalents at the end of term (V).56(2) 461,420,457.33 874,474,834.46
The notes are integral parts of the financial statements
- 12 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Cash Flow Statement of the Parent Company
In RMB
Note Year 2023 Year 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 79,719,541.58 49,647,323.90
Tax returned - 600,618.94
Other cash received from business operation 20,183,240.81 7,065,800.34
Sub-total of cash inflow 99,902,782.39 57,313,743.18
Cash paid for purchasing of merchandise and services 3,005,590.09 2,458,133.73
Cash paid to staffs or paid for staffs 38,735,139.38 33,850,730.29
Taxes paid 19,540,659.95 6,260,647.31
Other cash paid for business activities 18,940,923.33 5,334,787.37
Sub-total of cash outflow from business activities 80,222,312.75 47,904,298.70
Net cash generated from /used in operating activities 19,680,469.64 9,409,444.48
II. Cash flow generated by investing
Cash received from investment retrieving - -
Cash received as investment gains 12,954,592.48 17,348,361.22
Net cash retrieved from disposal of fixed assets, intangible assets,
- -
and other long-term assets
Net cash received from disposal of subsidiaries or other
- -
operational units
Other investment-related cash received 1,250,200,000.00 1,316,000,000.00
Sub-total of cash inflow due to investment activities 1,263,154,592.48 1,333,348,361.22
Cash paid for construction of fixed assets, intangible assets and
2,784,786.15 2,586,581.13
other long-term assets
Cash paid as investment - 1.00
Net cash received from subsidiaries and other operational units - -
Other cash paid for investment activities 1,550,500,000.00 1,134,754,229.41
Sub-total of cash outflow due to investment activities 1,553,284,786.15 1,137,340,811.54
Net cash flow generated by investment (290,130,193.67) 196,007,549.68
III. Cash flow generated by financing
Cash received as investment - -
Cash received as loans - -
Other financing –related ash received - -
Sub-total of cash inflow from financing activities - -
Cash to repay debts - -
Cash paid as dividend, profit, or interests 30,747,575.73 25,332,693.78
Other cash paid for financing activities - -
Sub-total of cash outflow due to financing activities 30,747,575.73 25,332,693.78
Net cash flow generated by financing (30,747,575.73) (25,332,693.78)
IV. Influence of exchange rate alternation on cash and cash
571.84 1,886.83
equivalents
- 13 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
V.Net increase of cash and cash equivalents (301,196,727.92) 180,086,187.21
Add: balance of cash and cash equivalents at the beginning of
310,322,528.19 130,236,340.98
term
VI ..Balance of cash and cash equivalents at the end of term 9,125,800.27 310,322,528.19
The notes are integral parts of the financial statements
- 14 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated Statement on Change in Owners’ Equity
In RMB
Year 2023
Owner’s equity Attributable to the Parent Company
Items
Minor shareholders’ Total of owners’
Other
equity equity
Share Capital Capital reserves Comprehensive Surplus reserves Retained profit
Income
I .Balance at the end of last year 506,521,849.00 1,961,599,824.63 109,596,609.31 100,909,661.32 170,636,610.95 1,181,777,770.21 4,031,042,325.42
Add: Change of accounting policy - - - - - - -
Correcting of previous errors - - - - - - -
Merger of entities under common
- - - - - - -
control
Other - - - - - - -
II. Balance at the beginning of current
506,521,849.00 1,961,599,824.63 109,596,609.31 100,909,661.32 170,636,610.95 1,181,777,770.21 4,031,042,325.42
year
III .Changed in the current year - - (15,989,228.50) 3,352,654.32 45,524,285.19 47,987,321.53 80,875,032.54
（1）Total comprehensive income - - (15,989,228.50) - 79,268,250.45 47,987,321.53 111,266,343.48
（II）Investment or decreasing of
- - - - - - -
capital by owners
1．Ordinary Shares invested by shareho
- - - - - - -
lders
2．Amount of shares paid and
- - - - - - -
accounted as owners’ equity
3．Other - - - - - - -
（III）Profit allotment - - - 3,352,654.32 (33,743,965.26) - (30,391,310.94)
1.Providing of surplus reserves - - - 3,352,654.32 (3,352,654.32) - -
2．Allotment to the owners (or
- - - - (30,391,310.94) - (30,391,310.94)
shareholders)
- 15 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
3．Other - - - - - - -
(IV) Internal transferring of owners’
- - - - - - -
equity
1. Capitalizing of capital reserves (or to
- - - - - - -
capital shares)
2. Capitalizing of surplus reserves (or to
- - - - - - -
capital shares)
3．Making up losses by surplus
- - - - - - -
reserves.
4. Other comprehensive income carry-
- - - - - - -
over retained earnings
5．Other - - - - - - -
(V). Special reserves - - - - - - -
1. Provided this year - - - - - - -
2．Used this term - - - - - - -
（VI）Other - - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,961,599,824.63 93,607,380.81 104,262,315.64 216,160,896.14 1,229,765,091.74 4,111,917,357.96
The notes are integral parts of the financial statements
- 16 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Consolidated Statement on Change in Owners’ Equity(Continued)
In RMB
Year 2022
Owner’s equity Attributable to the Parent Company
Items
Minor shareholders’ Total of owners’
Other
equity equity
Share Capital Capital reserves Comprehensive Surplus reserves Retained profit
Income
I .Balance at the end of last year 506,521,849.00 1,961,599,824.63 119,682,119.05 98,245,845.47 125,317,336.31 1,143,414,080.23 3,954,781,054.69
Add: Change of accounting policy - - - - - - -
Correcting of previous errors - - - - - - -
Merger of entities under common
- - - - - - -
control
Other - - - - - - -
II. Balance at the beginning of current
506,521,849.00 1,961,599,824.63 119,682,119.05 98,245,845.47 125,317,336.31 1,143,414,080.23 3,954,781,054.69
year
III .Changed in the current year - - (10,085,509.74) 2,663,815.85 45,319,274.64 38,363,689.98 76,261,270.73
（1）Total comprehensive income - - (10,085,509.74) - 73,309,182.94 38,363,689.98 101,587,363.18
（II）Investment or decreasing of
- - - - - - -
capital by owners
1．Ordinary Shares invested by shareho
- - - - - - -
lders
2．Amount of shares paid and
- - - - - - -
accounted as owners’ equity
3．Other - - - - - - -
（III）Profit allotment - - - 2,663,815.85 (27,989,908.30) - (25,326,092.45)
1.Providing of surplus reserves - - - 2,663,815.85 (2,663,815.85) - -
2．Allotment to the owners (or
- - - - (25,326,092.45) - (25,326,092.45)
shareholders)
- 17 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
3．Other - - - - - - -
(IV) Internal transferring of owners’
- - - - - - -
equity
1. Capitalizing of capital reserves (or to
- - - - - - -
capital shares)
2. Capitalizing of surplus reserves (or to
- - - - - - -
capital shares)
3．Making up losses by surplus
- - - - - - -
reserves.
4. Other comprehensive income carry-
- - - - - - -
over retained earnings
5．Other - - - - - - -
(V). Special reserves - - - - - - -
1. Provided this year - - - - - - -
2．Used this term - - - - - - -
（VI）Other - - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,961,599,824.63 109,596,609.31 100,909,661.32 170,636,610.95 1,181,777,770.21 4,031,042,325.42
The notes are integral parts of the financial statements
- 18 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Statement of change in owner’s Equity of the Parent Company
In RMB
Year 2023
Items
Other Comprehensive
Share Capital Capital reserves Surplus reserves Retained profit Total of owners’ equity
Income
I.Balance at the end of last year 506,521,849.00 1,577,392,975.96 98,855,668.75 100,909,661.32 689,527,368.58 2,973,207,523.61
Add: Change of accounting policy - - - - - -
Correcting of previous errors - - - - - -
Other - - - - - -
II. Balance at the beginning of current
506,521,849.00 1,577,392,975.96 98,855,668.75 100,909,661.32 689,527,368.58 2,973,207,523.61
year
III .Changed in the current year - - (15,225,837.94) 3,352,654.32 (217,422.04) (12,090,605.66)
（I）Total comprehensive income - - (15,225,837.94) - 33,526,543.22 18,300,705.28
(II) Investment or decreasing of capital
- - - - - -
by owners
1．Ordinary Shares invested by
- - - - - -
shareholders
2.Amount of shares paid and accounted
- - - - - -
as owners’ equity
3．Other - - - - - -
（III）Profit allotment - - - 3,352,654.32 (33,743,965.26) (30,391,310.94)
1.Providing of surplus reserves - - - 3,352,654.32 (3,352,654.32) -
2．Allotment to the owners (or
- - - - (30,391,310.94) (30,391,310.94)
shareholders)
3．Other - - - - - -
(IV) Internal transferring of
- - - - - -
owners’ equity
1. Capitalizing of capital reserves (or to
- - - - - -
capital shares)
- 19 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
2. Capitalizing of surplus reserves (or to
- - - - - -
capital shares)
3．Making up losses by surplus
- - - - - -
reserves.
4．Other comprehensive income carry-
- - - - - -
over retained earnings
5．Other - - - - - -
(V) Special reserves - - - - - -
1. Provided this year - - - - - -
2．Used this term - - - - - -
（VI）Other - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,577,392,975.96 83,629,830.81 104,262,315.64 689,309,946.54 2,961,116,917.95
The notes are integral parts of the financial statements
- 20 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Statement of change in owner’s Equity of the Parent Company(Continued)
In RMB
Year 2022
Items
Other Comprehensive
Share Capital Capital reserves Surplus reserves Retained profit Total of owners’ equity
Income
I.Balance at the end of last year 506,521,849.00 1,577,392,975.96 108,762,538.39 98,245,845.47 690,879,118.40 2,981,802,327.22
Add: Change of accounting policy - - - - - -
Correcting of previous errors - - - - - -
Other - - - - - -
II. Balance at the beginning of current
506,521,849.00 1,577,392,975.96 108,762,538.39 98,245,845.47 690,879,118.40 2,981,802,327.22
year
III .Changed in the current year - - (9,906,869.64) 2,663,815.85 (1,351,749.82) (8,594,803.61)
（I）Total comprehensive income - - (9,906,869.64) - 26,638,158.48 16,731,288.84
(II) Investment or decreasing of capital
- - - - - -
by owners
1．Ordinary Shares invested by
- - - - - -
shareholders
2.Amount of shares paid and accounted
- - - - - -
as owners’ equity
3．Other - - - - - -
（III）Profit allotment - - - 2,663,815.85 (27,989,908.30) (25,326,092.45)
1.Providing of surplus reserves - - - 2,663,815.85 (2,663,815.85) -
2．Allotment to the owners (or
- - - - (25,326,092.45) (25,326,092.45)
shareholders)
3．Other - - - - - -
(IV) Internal transferring of
- - - - - -
owners’ equity
- 21 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
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．Other comprehensive income carry-
- - - - - -
over retained earnings
5．Other - - - - - -
(V) Special reserves - - - - - -
1. Provided this year - - - - - -
2．Used this term - - - - - -
（VI）Other - - - - - -
IV. Balance at the end of this term 506,521,849.00 1,577,392,975.96 98,855,668.75 100,909,661.32 689,527,368.58 2,973,207,523.61
The notes are integral parts of the financial statements
- 22 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
I. Basic Information of the Company
1.Company overview
Shenzhen Textile (Holdings) Co., Ltd (hereinafter referred to as "the Company") is a company limited by shares
registered in Guangdong Province, formerly known as Shenzhen Textile Industry Company and established in 1984.
The Company was listed on the Shenzhen Stock Exchange in August 1994. The Company publicly issued RMB
ordinary shares (A shares) and domestic listed foreign capital shares (B shares) to the domestic and foreign public
respectively and listed them for trading.
Headquartered in Shenzhen, Guangdong Province, the main business of the Company and its subsidiaries
(hereinafter referred to as "the Group") includes the research and development, production and marketing of
polarizers for liquid crystal display, as well as property management business mainly located in the prosperous
commercial area of Shenzhen and textile and garment business.
2. Scope of consolidated financial statement
The financial statements have been authorized for issuance of Board of Directors of the Company on
March 26,2024.
. II. Basis for the preparation of the financial report
（1）Basis for the preparation
The Group implements the accounting standards for enterprises and related regulations promulgated by the
Ministry of Finance. In addition, the Group also discloses relevant financial information in accordance with the No.
15 Compilation Rules for Disclosure of Information by Companies ofIssuing Securities to the Public-General
Provisions for Financial Reporting (2023 Revision).
(2) Continuous operation
The Group evaluated its ability to continue as a going concern for the 12 months from 31 December 2022 and found
no matters or circumstances that raised significant doubts about its ability to continue as a going concern.
Accordingly, the present financial reporthas been prepared on the basis of going concern assumptions.
(3) Bookkeeping basis and pricing principle
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which are measured at
fair value, the financial reportusesthe historical cost as the measurement basis. If the asset is impaired, the
corresponding impairment provision will be made in accordance with the relevant regulations.
Under historical cost measurement, an asset is measured at the fair value of the amount of cash or cash equivalents
paid or the consideration paidat the time of acquisition. Liabilities are measured by the amount of money or assets
actually received as a result of the present obligation is assumed, or the contractual amount of the present obligation
is incurred, or the amount of cash or cash equivalents expected to be paid in the ordinary course of life to repay the
liability.
Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay for a
transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value is
observable or estimated using valuation techniques, the fair value measured and disclosed in this financial report is
determined on that basis.
For financial assets that use the transaction price as the fair value at the time of initial recognition, and a valuation
technique involving unobservable inputs is used in subsequent measures of fair value, the valuation technique is
corrected during the valuation process so that the initial recognition result determined by the valuation technique is
equal to the transaction price.
- 23 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Fair value measurement is divided into three levels as to the observability of fair value inputs, and the importance of
such inputs to fair value measurement as a value inputs, and the importance of such inputs to fair value measurement
as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that can be
obtained at the measurement date.
The second-level input value is the input value that is directly or indirectly observable for the underlying asset or
liability in addition to the first-level input.
The third level input value is the unobservable input value of the underlying asset or liability.
- 24 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
II. Important accounting policies and accounting estimates
1.Statement of compliance with accounting standards for business enterprises
The financial report prepared by the Company complies with the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflects the consolidated and parent financial position of the
Company as of December 31, 2023 and the consolidated and parent operating results, the consolidated and parent
shareholders' equity changes and the consolidated and parent cash flows for 2023.
2. Accounting period
The Group's fiscal year is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
3.Business cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to the realization of
cash or cash equivalents. The Company's business cycle is 12 months.
4. The base currency of account
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate, and the Company and its domestic subsidiaries use RMB as the base accounting currency. The overseas
subsidiaries of the Company determine RMB as their base accounting currency according to the currency of the
main economic environment in which they operate. The currency used by the Company in the preparation of this
financial report is RMB.
- 25 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
5.Determination method and selection basis for material criteria
Item
Material criteria
The proportion of individual item exceeds 0.5% of
Receivables for a significant single provision for bad debts
total assets
Important accounts receivable for the recovery or reversal of The proportion of individual item exceeds 0.5% of
bad debt reserves total assets
The proportion of individual item exceeds 0.5% of
Significant prepayments that are more than 1 year old
total assets
Significant accountspayable and/or advance receipts aged
The proportion of individual item exceeds 0.5% of
more than 1 year
total assets
Contract liabilities and other payables
Cash received in connection with significant investment
Amount exceeding RMB 50 million yuan
activities
Payments of cash in connection with significant investment
Amount exceeding RMB 50 million yuan
activities
More than 10% of total assets, or total revenues or
Significant non-wholly owned subsidiary
total profits
Significant joint ventures or associates Net assets account for more than 5%
6. Accounting treatment of business combinations under the common control and under non-common
control
Business combinations are divided into business combinations under common control and business combinations
under non-common control.
6.1 Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties before
and after the merger, and the control is not temporary, therefore it is a business combination under the common
control.
Assets and liabilities acquired in a business combination are measured at their carrying value on the consolidated
party at the date of consolidation. The difference between the carrying amount of net assets acquired by the
merging party and the carrying amount of the merger consideration paid is adjusted for the equity premium in the
capital reserve or for retained earnings if the equity premium is insufficient to be offset.
Direct carrying value on the consolidated party at the date of consolidation. The difference between the carrying
amount of net assets acquired by the merging party and the carrying amount of the merger consideration paid is
adjusted for the equity premium in the capital reserve or for retained earnings if the equity premium is
insufficient to be offset.
Direct expenses incurred in connection with the business combination are recognized in profit or loss for the
period when incurred.
6.2 Business combinations and goodwill under non-common control
The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties
before and after the merger, therefore it is a business combination under non-common control.
Consolidation cost is the fair value of assets paid, liabilities incurred or assumed and equity instruments issued to
gain control of the acquired partyby the purchaser. Intermediary fees such as auditing, legal services, valuation
consulting and other related management expenses incurred by the purchaser for the business combination are
recognized in the profit or loss of the period when incurred.
The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for recognition acquired by
the purchaser in the merger are measured at fair value at the date of purchase.
The cost of the merger is greater than the difference in the fair value share of the acquiree's identifiable net assets
acquired in the merger, which is recognized as goodwill as an asset and initially measured at cost. If the cost of the
merger is less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the fair value of
- 26 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
the acquired acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the
merger are first reviewed, and if the consolidated cost after review is still less than the fair value share of the
acquiree's identifiable net assets share acquired in the merger, which shall be included in profit or loss for the
periodoccurred.
Goodwill resulting from business combinations is presented separately in the consolidated financial statement and
measured at cost less accumulated impairment provisions.
7. Criteria for determining control and preparation method for consolidated financial statement
7.1 Criteria for Determining Control
Control means that the investor has power over the investee, enjoys variable returns by participating in the investee's
related activities, and has the ability to use its power over the investee to influence the amount of its returns. The
Group will reassess the relevant elements involved in the above definition of controls as a result of changes in the
relevant facts and circumstances.
7.2. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis.
The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates when the
Group loses control of the subsidiary.
For subsidiaries disposed of by the Group, the results of operations and cash flows prior to the date of disposal
(the date of loss of control) have been duly included in the consolidated statement of income and the consolidated
statement of cash flows.
For subsidiaries acquired through a business combination under non-common control, the results of operations
and cash flows from the date of purchase (the date of acquisition of control) have been appropriately included in the
consolidated statement of income and the consolidated statement of cash flows.
For subsidiaries acquired through a business combination under common control, regardless of when the
business combination takes place in any point of the reporting period, the subsidiary shall be deemed to be included
in the scope of the Group's consolidation on the date on which the subsidiary is under the control of the ultimate
controlling party, the results of operations and cash flows from the beginning of the earliest period of the reporting
period are duly included in the consolidated income statement and the consolidated statement of cash flows.
The principal accounting policies and the accounting periods adopted by the subsidiaries are determined in
accordance with the accounting policies and accounting periods uniformly prescribed by the Company.
The impact of the Company's internal transactions with its subsidiaries and between subsidiaries on the
consolidated financial statement is offset at the time of consolidation.
The shares of the subsidiary's ownership interest that are not part of the parent company are shown as minority
interests under the item "minority interests" under the item on shareholders' equityin the consolidated balance sheet.
The shares of the subsidiary's net profit or loss for the period that belongs to minority interests is shown under the
item "minority profit and loss" under the net profit item in the consolidated statement of income.
The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share of
ownership interest enjoyed in the beginning of the period, and its balance is still offset by the minority shareholders’
equity.
For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investment without
losing control of the subsidiary, it’s accounted as equity transactions, and the carrying amount of the owner's
interest and minority interest attributable tothe parent company is adjusted to reflect their change in the relevant
interest in the subsidiary. The difference between the adjustment of minority interests and the fair value of the
consideration paid/received is adjusted to the capital reserve, and if the capital reserve is insufficient to offset it,
then it’s adjusted to the retained earnings.
8. Joint venture arrangement
- 27 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures, which are determined in
accordance with the rights and obligations of the joint venture parties in the joint venture arrangement by taking into
account factors such as the structure, legal form and contractual terms of the arrangement. Commonly-operated refers to
a joint arrangement in which the joint venture parties enjoy the assets related to the arrangement and bear the liabilities
related to the arrangement. The jointly-operated is a joint arrangement in which the joint venture party has rights only to
the net assets of the joint arrangement.
The Group's investments in joint ventures are accounted by using the equity method, please see Note (III) 17.3.2
"Long-term equity investments accounted by the equity method".
9. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer to
investments held by the Group for a short period (generally within three months from the date of purchase), highly
liquid, easily convertible into a known amount of cash, and with little risk of change in value.
10.Foreign currency transactions and translation of foreign currency statements
10.1 Foreign Currency Business
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate on the
date of the transaction, and the exchange rate similar to the spot rate on the date of the transaction is determined in a
systematic and reasonable manner.
At the balance sheet date, foreign currency monetary items are converted into RMB using the spot exchange rate
on that date, and the exchange difference arising from the difference between the spot exchange rate on that date and
the spot exchange rate at the time of initial recognition or the day preceding the balance sheet date, except: (1) the
exchange difference of foreign currency special borrowings eligible for capitalization is capitalized during the
capitalization period and included in the cost of the underlying asset; (2) The exchange difference of hedging
instruments for hedging in order to avoid foreign exchange risk is treated according to the hedge accounting method;
The exchange differenceresults from changes in other carrying balances other than amortized cost for monetary
items classified as measured at fair value and changes in which are included in other comprehensive income, it shall
be recognized as profit or loss for the period.
Where the preparation of the consolidated financial statement involves overseas operations, if there are foreign
currency monetary items that substantially constitute net investment in overseas operations, the exchange difference
arising from exchange rate changes is included in the "foreign currency statement translation difference" item
included in other comprehensive income; When disposing of overseas operations, it is included in the profit or loss
of the period of disposal.
Foreign currency non-monetary items measured at historical cost are still measured at the base currency amount
translated at the spot exchange rate on the date of the transaction. Foreign currency non-monetary items measured at
fair value are translated using the spot exchange rate on the fair value determination date, and the difference
between the converted base currency amount and the original accounting currency amount is treated as a change in
fair value (including exchange rate changes) and recognized as profit or loss for the period or recognized as other
comprehensive income.
10.2 Translation of Foreign Currency Financial Statements
For the purpose of preparing consolidated financial statement, foreign currency financial statements for overseas
operations are converted into RMB statements in the following manner: all assets and liabilities in the balance
sheet are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are converted at
the spot exchange rate at the time of incurrence; All items in the income statement and items reflecting the amount
of profit distribution are converted at an exchange rate similar to the spot exchange rate on the date of the
transaction; The difference between the converted asset items and the total of liability items and shareholders'
equity items is recognized as other comprehensive income and included in shareholders' equity.
Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates similar to
the spot exchange rate on the occurrence date of cash flow, and the impact amount of exchange rate changes on
cash and cash equivalents is used as a reconciliation item and is shown separately in the statement of cash flows as
"Impact of exchange rate changes on cash and cash equivalents".
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts converted
from the prior-year financial statement.
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Financial Statements and Auditor's Report
For the year ended December 31,2023
Where the Group losses control of overseas operations due to disposing of all the ownership interests in overseas
operations or the disposal of part of the equity investment or other reasons, the difference in the translation of the
foreign currency statements in the ownership interests attributable to the parent company related to the overseas
operations shown below the items of shareholders' equity in the balance sheet shall be transferred to the profit or
loss of the period of disposal.
Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of the
equity investment or other reasons without lost the control of the overseas operations, the difference in the
translation of foreign currency statements related to the disposal part of the overseas operations shall be attributed
to the minority shareholders' interests and shall not be transferred to the profit or loss of the period. Where
disposing of part of the equity of an overseas operation in an associate or a joint venture, the difference in the
translation of foreign currency statements related to the overseas operation shall be transferred to the profit or loss
of the period of disposal according to the proportion of the disposal of the overseas operation.
11.Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument
contract.
In the case of the purchase or sale of financial assets in the usual manner, it shall recognize the assets to be received
and the liabilities to be incurred on the transaction date, or derecognize the assets sold on the transaction date.
Financial assets and financial liabilities are measured at fair value at initial recognition. For financial assets and
financial liabilities measured at fair value and changes in which are recorded in profit or loss for the period, the
related transaction costs are recognized directly in profit or loss for the period; For other categories of financial
assets and financial liabilities, the related transaction costs are included in the initial recognition amount. Where the
Group initially recognizes accounts receivable that do not contain a material financing component or do not take
into account the financing component in a contract not older than one year in accordance with No. 14Accounting
Standard for Business Enterprises-Revenue (the "Revenue Standard"), the initial measurement is made at the
transaction price as defined by the revenue standard.
The effective interest rate method refers to the method of calculating the amortized cost of financial assets or
financial liabilities and apportioning interest income or interest expense into each accounting period.
The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial asset or
financial liability over the expected life of the financial asset to the carrying balance of the financial asset or the
amortized cost of the financial liability. In determining the effective interest rate, the expected cash flow is
estimated taking into account all contractual terms of the financial asset or financial liability (such as early
repayment, rollover, call option or other similar option, etc.), without taking into account the expected credit loss.
The amortized cost of a financial asset or financial liability is the amount initially recognized less the principal
repaid, plus or minus the accumulated amortization resulting from the amortization of the difference between the
initial recognition amount and the amount due date using the effective interest rate method, and then deduct the
accumulated provision for losses (for financial assets only).
11.1 Classification, recognition and measurement of financial assets
After initial recognition, the Group conducts subsequent measurements of different classes of financial assets at
amortized cost, measured at fair value and changes in which are recognized in other comprehensive income, or
measured at fair value and changes in which are recorded in profit or loss for the period.
The contractual clauses of a financial asset provide that the cash flows generated on a given date are only the
payment of principal and interest based on the outstanding principal amount, and the Group's business model is
aimed for managing the financial asset is to collect contractual cash flows, then the Group classifies the financial
asset as a financial asset measured at amortized cost. Such financial assets mainly include monetary funds, notes
receivable, accounts receivable and other receivables.
The contractual terms of a financial asset provide that the cash flows generated at a particular date are only the
payment of principal and interest based on the outstanding principal amount, and the Group's business model for
managing the financial asset is aimed at both the receipt of contractual cash flows and the sale of the financial asset,
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Financial Statements and Auditor's Report
For the year ended December 31,2023
then the financial asset is classified as a financial asset measured at fair value and the change therein is recognized
in other comprehensive income. Such financial assets with a maturity of more than one year from the date of
acquisition are listed as other debt investments, and if they mature within one year (inclusive) from the balance
sheet date, they are shown as non-current assets maturing within one year; Accounts receivable and notes
receivable classified as measured at fair value and changes in which are recognized in other comprehensive income
at the time of acquisition are shown in receivables financing, and the other acquired with a maturity of one year
(inclusive) are shown in other current assets.
At initial recognition, the Group may irrevocably designate investments in non-tradable equity instruments other
than contingent consideration recognized in business combinations that are under non-common control as financial
assets measured at fair value and changes in which are recognized in other comprehensive income on a single
financial asset basis. Such financial assets are listed as investments in other equity instruments.
Where a financial asset meets any of the following conditions, it indicates that the Group's purpose in holding the
financial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.
The underlying financial assets were part of a centrally managed portfolio of identifiable financial instruments at
the time of initial recognition and there was objective evidence of an actual pattern of short-term profits in the
recent.
The underlying financial asset is a derivative instrument, except for derivatives that meet the definition of a
financial guarantee contract and derivatives that are designated as effective hedging instruments.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period include
financial assets classified as measured at fair value and changes in which are recorded in profit or loss for the
period and financial assets designated as measured at fair value and changes in which are recorded in profit or loss
for the period:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assets measured at
fair value and changes in which are included in other comprehensive income are classified as financial assets
measured at fair value and changes in which are recorded in profit or loss for the period.
At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Group
may irrevocably designate financial assets as financial assets measured at fair value and changes in which are
recorded in profit or loss for the period.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period are shown
in trading financial assets, and financial assets with maturity of more than one year (or have an indefinite maturity)
from the balance sheet date and expected to be held for more than one year is shown as other non-current financial
assets
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective
interest rate method, and the gains or losses arising from impairment or derecognition are included in profit or loss
for the period.
The Group recognizes interest income on financial assets measured at amortized cost in accordance with the
effective interest rate method. For financial assets purchased or derived that have incurred credit impairment, the
Group determines interest income based on the amortized cost of the financial asset and the credit-adjusted
effective interest rate from the initial recognition. In addition, the Group determines interest income based on the
carrying balance of financial assets multiplied by the effective interest rate.
11.1.2 Financial assets measured at fair value and changes in which are recorded in other comprehensive income
Impairment losses or gains and interest income calculated using the effective interest rate methodrelated to
financial assets classified as measured at fair value and changes in which are included in other comprehensive
income are recognized in profit or loss for the period, and except that, changes in the fair value of such financial
assets are recognized in other comprehensive income. The amount of the financial asset recognized in profit or loss
for each period is equal to the amount that is recognized in profit or loss for each period as if it had been measured
at amortized cost. When the financial asset is derecognized, the accumulated gain or loss previously recognized in
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Financial Statements and Auditor's Report
For the year ended December 31,2023
other comprehensive income is transferred from other comprehensive income and recognized in profit or loss for
the period.
Changes in fair value in investments in non-traded equity instruments designated as measured at fair value and the
change in which are recognized in other comprehensive income are recognized in other comprehensive income,
and when the financial asset is derecognized, the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income to retained earnings. During the period
during which the Group holds the investment in the non-tradable equity instrument, the dividend income is
recognized and recorded in profit or loss for the period when the Group's right to receive dividends has been
established, the economic benefits associated with the dividends are likely to flow into the Group and the amount
of the dividends can be reliably measured.
11.1.3 Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period are
subsequently measured at fair value, and gains or losses resulting from changes in fair value and dividends and
interest income related to the financial asset are recorded in profit or loss for the period.
11.2 Impairment of Financial Instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured at
amortized cost, financial assets classified as measured at fair value and changes in which are recognized in other
comprehensive income, and lease receivables based on expected credit losses.
The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of notes
receivable and accounts receivable formed by transactions regulated by revenue standards that do not contain a
material financing element or do not take into account the financing component of contracts not exceeding one year,
as well as operating leases receivable arising from transactions regulated by No. 21Accounting Standard for
Business Enterprises -Leases.
For other financial instruments, the Group assesses the change in the credit risk of the relevant financial
instruments since initial recognition at each balance sheet date, except for financial assets purchased or derived that
have incurred credit impairment. If the credit risk of the Financial Instrument has increased significantly since the
initial recognition, the Group measures its loss provision by an amount equivalent to the expected credit loss over
the life of the financial instrument; If the credit risk of the financial instrument does not increase significantly since
the initial recognition, the Group measures its loss provision by an amount equivalent to the expected credit loss of
the financial instrument in the next 12 months. Increases or reversals of credit loss provisions are recognized as
impairment losses or gains in profit or loss for the period, except for financial assets classified as measured at fair
value and changes in which are recognized in other comprehensive income. For financial assets classified as
measured at fair value and the change thereof is recorded in other comprehensive income, the Group recognizes a
credit loss provision in other comprehensive income and includes impairment losses or gains in profit or loss for
the period without reducing the carrying amount of the financial asset as shown in the balance sheet.
Where the Group has measured a loss provision in the preceding accounting period by an amount equivalent to the
expected credit loss over the life of the financial instrument, but the financial instrument is no longer subject to a
significant increase in credit risk since the initial recognition at the period balance sheet date, the Group measures
the loss provision for the financial instrument at the period balance sheet date by an amount equivalent to the
expected credit loss in the next 12 months, and the resulting reversal amount for loss provision is recognized as an
impairment gain in profit or loss for the period.
11.2.1 Significant increase in credit risk
Using reasonably and evidence-based forward-looking information available, the Group compares the risk of
default on financial instruments at the balance sheet date with the risk of default on the initial recognition date to
determine whether the credit risk of financial instruments has increased significantly since initial recognition.
In assessing whether credit risk has increased significantly, the Group will consider the following factors:
(1) whether the internal price indicators have changed significantly due to changes in credit risk.
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Financial Statements and Auditor's Report
For the year ended December 31,2023
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.,
stricter contractual terms, additional collateral or higher yields) if the existing financial instrument is derived or
issued as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the same
financial instrument or similar financial instruments with the same estimated duration. These indicators include:
credit spreads, credit default swap prices for borrowers, the length and extent to which the fair value of financial
assets is less than their amortized cost, and other market information relevant to borrowers (such as changes in the
price of borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument in fact or
expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) whether there has been an adverse change in business, financial or economic circumstances that is expected to
result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) whether there has been a significant change in the actual or expected operating results of the debtor.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) whether there has been a significant adverse change in the regulatory, economic or technical environment in
which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debt or in
the quality of the guarantee or credit enhancement provided by a third party. These changes are expected to reduce
the economic incentive for the debtor to repay the loan within the term specified in the contract or affect the
probability of default.
(11) whether there has been a significant change in the economic incentive expected to reduce the borrower's
repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract, including the waiver or amendment
of contractual obligations that may result from the anticipated breach of the contract, the granting of interest-free
periods, interest rate jumps, requests for additional collateral or guarantees, or other changes to the contractual
framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repayment behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
Regardless of whether the credit risk has increased significantly after the above assessment, when the payment of a
financial instrument contract has been overdue for more than (inclusive) 30 days, it indicates that the credit risk of
the financial instrument has increased significantly.
At the balance sheet date, if the Group determines that a financial instrument has only a low credit risk, the Group
assumes that the credit risk of the financial instrument has not increased significantly since its initial recognition. A
financial instrument is considered to have a low credit risk if it has a low risk of default, the borrower's ability to
meet its contractual cash flow obligations in the short term is strong, and even if there are adverse changes in the
economic situation and operating environment over a longer period of time that do not necessarily reduce the
borrower's performance of its contractual cash obligations.
11.2.2 Financial assets that have undergone credit impairment
Where one or more events occur in which the Group expects to adversely affect the future cash flows of a financial
asset, the financial asset becomes a financial asset that has experienced credit impairment. Evidence that credit
impairment of financial assets has occurred includes the following observable information:
（1）significant financial difficulties of the issuer or debtor;
(2)Breach of contract by the debtor, such as default or delay in payment of interest or principal;
(3)The creditor gives the debtor concessions under economic or contractual considerations relating to the debtor's
financial difficulties that would not have been made under any other circumstances;
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Financial Statements and Auditor's Report
For the year ended December 31,2023
(4)The debtor is likely to go bankrupt or undergo other financial restructuring;
(5)The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
(6)Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.
Based on the Group's internal credit risk management, the Group considers an event of default to have occurred
when the internally advised or externally obtained information indicates that the debtor of the financial instrument
cannot fully pay creditors including the Group (without regard to any security obtained by the Group).
Notwithstanding the above assessment, if a contract payment for a financial instrument is overdue for more than 90
days(inclusive), the Group presumes that the financial instrument has defaulted.
11.2.3 Determination of Expected Credit Loss
The Group uses an impairment matrix on a portfolio basis on notes receivable, accounts receivable and other
receivables to determine credit losses on relevant financial instruments. The Group classifies financial instruments
into different groups based on common risk characteristics. The common credit risk characteristics adopted by the
Group include: type of financial instrument, credit risk rating, type of collateral, date of initial recognition, industry
in which the debtor is in, value of collateral relative to financial assets, etc.
For financial assets and lease receivables, the expected credit loss is the present value of the difference between the
contractual cash flows due to the Group and the cash flows expected to be collected.
The reflection factors of the Group's methodology for measuring expected credit losses on financial instruments
include: an unbiased probability-weighted average amount determined by evaluating a range of possible outcomes;
the time value of money; reasonable and well-founded information about past events, current conditions, and
projections of future economic conditions that can be obtained at the balance sheet date without unnecessary
additional costs or efforts.
11.2.4 Write-down of Financial Assets
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will be recovered
in whole or in part, the carrying balance of the financial assets will be written down directly. Such write-downs
constitute derecognition of the underlying financial assets.
11.3 Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to receive cash
flows from the financial asset is terminated; (2) the financial asset has been transferred and substantially all of the
risks and rewards in the ownership of the financial asset have been transferred to the transferring party; (3) the
financial asset has been transferred, and although the Group has neither transferred nor retained substantially all of
the risks and rewards in the ownership of the financial asset, it has not retained control over the financial asset.
Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a financial
asset, and retains control of the financial asset, it will continue to recognize the transferred financial asset to the
extent that it continues to be involved in the transferred financial asset and recognize the relevant liabilities
accordingly. The Group measures the relevant liabilities as follows:
Where the transferred financial assets are measured at amortized cost, the carrying amount of the relevant liability
is equal to the carrying amount of the financial asset that continues to be involved in the transferred less the
amortized cost of the rights retained by the Group (if the Group retains the relevant rights as a result of the transfer
of financial assets) plus the amortized cost of the obligations assumed by the group (if the group has assumed the
relevant obligations as a result of the transfer of financial assets), and the relevant liabilities are not designated as
financial liabilities measured at fair value and changes in which are recorded in profit or loss for the period.
Where the transferred financial assets are measured at fair value, the carrying amount of the relevant liabilities is
equal to the carrying amount of the financial assets that continue to be involved in the transferred financial assets
less the fair value of the rights retained by the Group (if the Group retains the relevant rights as a result of the
transfer of financial assets) plus the fair value of the obligations assumed by the Group (if the Group has assumed
such obligations as a result of the transfer of financial assets), the fair value of such rights and obligations is the fair
value when measured on an independent basis.
If the overall transfer of financial assets satisfies the conditions for derecognition, the difference between the
carrying amount of the transferred financial assets at the derecognition date and the consideration received as a
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Financial Statements and Auditor's Report
For the year ended December 31,2023
result of the transfer of the financial and the sum of the amount corresponding to the derecognition portion of the
accumulated fair value change originally included in other comprehensive income is included in profit or loss for
the period. If the Group transfers financial assets that are investments in non-traded equity instruments designated
as measured at fair value and changes in which are recognized in other comprehensive income, the accrued gains or
losses previously recognized in other comprehensive income are transferred from other comprehensive income and
recorded in retained earnings.
If a partial transfer of financial assets satisfies the conditions for derecognition, the carrying amount of the financial
assets as a whole before the transfer is apportioned between the derecognized portion and the continuing
recognition portion at the respective relative fair value on the transfer date, and the difference between the sum of
the amount of the consideration received in the derecognized portion and the amount corresponding to the
derecognized portion of the accumulated fair value change originally included in other comprehensive income and
the carrying amount of the derecognized portion at the derecognition date is included in profit or loss for the
current period. If the Group transfers financial assets that are investments in non-traded equity instruments
designated as measured at fair value and changes in which are recognized in other comprehensive income, the
accrued gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income and recorded in retained earnings.
If the conditions for derecognition are not met for the overall transfer of financial assets, the Group continues to
recognize the transferred financial assets as a whole and recognizes the consideration received as a liability.
11.4 Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equity instruments at
initial recognition according to the contract terms of the financial instruments issued and their economic essence,
not just in legal form, combined with the definitions of financial liabilities and equity instruments.
11.4.1 Classification, recognition and measurement of financial liabilities
Financial liabilities are divided into financial liabilities measured at fair value and whose changes are included in
current profits and losses at initial recognition and other financial liabilities.
11.4.1.1 Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated as measured at fair value and whose changes are included in current profits and losses. Except for
derivative financial liabilities which are listed separately, financial liabilities measured at fair value and whose
changes are included in current profits and losses are listed as transactional financial liabilities.
Financial liabilities that meet one of the following conditions, indicate that the purpose of the Group's financial
liabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.
The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralized
management at the initial recognition, and there is objective evidence to show the actual short-term profit model in
the near future.
Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial guarantee
contract and derivatives that are designated as effective hedging instruments.
The Group can designate financial liabilities that meet one of the following conditions as financial liabilities
measured at fair value and whose changes are included in current profits and losses at initial recognition: (1) The
designation can eliminate or significantly reduce accounting mismatch; (2) According to the risk management or
investment strategy stated in the formal written documents of the Group, the financial liability portfolio or the
portfolio of financial assets and financial liabilities are managed and evaluated on the basis of fair value, and
reported to key management personnel within the Group on this basis; (3) Qualified mixed contracts containing
embedded derivatives.
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Financial Statements and Auditor's Report
For the year ended December 31,2023
Transactional financial liabilities are subsequently measured at fair value, and gains or losses caused by changes in
fair value and dividends or interest expenses related to these financial liabilities are included in current profits and
losses.
For financial liabilities designated as being measured at fair value and whose changes are included in the current
profits and losses, the changes in fair value of the financial liabilities caused by changes in the Group's own credit
risk are included in other comprehensive income, and other changes in fair value are included in the current profits
and losses. When the financial liabilities are derecognized, the accumulated change of its fair value caused by the
change of their own credit risk previously included in other comprehensive income is carried forward to retained
income. Dividends or interest expenses related to these financial liabilities are included in the current profits and
losses. If the accounting mismatch in profit and loss will be caused or enlarged by handling the impact of the
changes in credit risk of these financial liabilities in the above way, the Group will include all the gains or losses of
the financial liabilities (including the amount affected by the changes in credit risk) in the current profits and losses.
11.4.1.2 Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets, are classified as financial liabilities
measured in amortized cost and subsequently measured in amortized cost. The gains or losses arising from
derecognition or amortization are included in the current profits and losses.
If the modification or renegotiation of the contract between the Group and the counterparty does not result in the
termination of the recognition of the financial liabilities that are subsequently measured according to amortized
cost, but the cash flow of the contract changes, the Group recalculates the book value of the financial liabilities and
records the relevant gains or losses into the current profits and losses. The recalculated book value of such financial
liabilities is determined by the Group according to the present value of discounted contract cash flow that will be
renegotiated or modified according to the original actual interest rate of the financial liabilities. For all costs or
expenses arising from the modification or renegotiation of the contract, the Group adjusts the book value of the
modified financial liabilities and amortizes them within the remaining term of the modified financial liabilities.
11.4.2 Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged, the recognition of financial
liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign an agreement to
replace the original financial liabilities by undertaking new financial liabilities, and the contract terms of the new
financial liabilities are substantially different from those of the original financial liabilities, the Group will
derecognize the original financial liabilities and recognize the new financial liabilities at the same time.
If all or part of the financial liabilities are derecognized, the difference between the book value of the derecognized
part and the consideration paid (including the transferred non-cash assets or the new financial liabilities undertaken)
will be included in the current profits and losses.
11.4.3 Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after deducting all
liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by the Group
are treated as changes in equity. The Group does not recognize changes in the fair value of equity instruments.
Transaction costs related to equity transactions are deducted from equity.
The distribution of equity instrument holders by the Group is treated as profit distribution, and the stock dividends
paid do not affect the total shareholders' equity.
11.5 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financialliabilities, and this legal
right is currently enforceable, and the Group plans to settle the financial assets on a net basis or realize the financial
assets and pay off the financial liabilities at the same time, the financial assets and financial liabilities are listed in
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Financial Statements and Auditor's Report
For the year ended December 31,2023
the balance sheet at the amount after offsetting each other. In addition, financial assets and financial liabilities are
listed separately in the balance sheet and do not offset each other.
12 .Notes receivable
12.1 Methods for determining and accounting treatment for expected credit lossesof notes receivable
The Group separately assesses the credit risk of notes receivable with significantly different credit risks, including
notes receivable that have not been accepted at maturity and notes receivable that have clear indications that the
acceptor is likely to be unable to fulfill the acceptance obligations, and other notes receivable are accrued for
expected credit losses on a portfolio basis based on The increase or reversal of the provision for expected credit
losses on notes receivable is included in the profit or loss for the current period as a credit impairment loss or gain.
their credit risk characteristics.
12.2 Portfolio types and basis for determining credit loss provisions based on credit risk characteristics
Except for the notes receivable that assess the credit risk individually, the rest of the notes receivable are divided
into different portfolios based on their credit risk characteristics:
Portfolio Category Determining basis
Portfolio 1 Bank acceptance
Portfolio 2 Trade acceptance
13.Account receivable
13.1 Methods for determining expected credit losses and accounting treatment of accounts receivable
The Group uses an impairment matrix to determine the credit losses of accounts receivable on a portfolio basis.
The increase or reversal of the provision for expected credit losses of accounts receivable shall be recognized in
profit or loss for the current period as credit impairment losses or gains.
13.2 The type of portfolio and the basis for determining the provision for credit losses based on the credit risk
characteristics of the portfolio.
The Group classifies accounts receivable into portfolio1 based on common risk characteristics. The common credit
risk characteristics adopted by the Group mainly include the credit tenor and operating conditions of the debtor.
13.3 Calculation method of aging for credit risk characteristics portfolio recognized by aging
The Group uses the aging of accounts receivable as a credit risk characteristic and uses an impairment matrix to
determine its credit losses. Aging is calculated from the date of its initial recognition. If the terms and conditions of
the accounts receivable are modified but do not result in the derecognition of the accounts receivable, the aging
shall be calculated consecutively.
13.4 Determining standard of individual provision according to individual provision for bad debts
The Group assesses credit risk of accounts receivable individually due to its significant differences in credit
riskwith evidence demonstrated greater credit risk.
14. Financing of accounts receivable
14.1 Determination method and accounting treatment method for expected credit loss of accounts receivable
financing
The Group recognizes credit loss provisions for accounts receivable financing in other comprehensive income and
includes credit impairment losses or gains in the current period's profit and loss, without reducing the carrying
amount of accounts receivable financing presented in the balance sheet.
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Financial Statements and Auditor's Report
For the year ended December 31,2023
14.2 Judgment criteria for individual provision of credit loss reserves based on individual provision
The Group evaluates the financing of corresponding receivables based on the acceptance bank credit status of bank
acceptance bills and makes provisions for credit losses.
15.Other accounts receivable
15.1 Methods for determining expected credit losses and accounting treatment of other receivables
The Group determines the credit losses on other receivables on a portfolio basis. The increase or reversal of the
provision for expected credit losses of other receivables is recognized as credit impairment losses or gainsin profit
or loss for the current period.
15.2 Calculation method of aging for credit risk characteristics portfolio recognized by aging
Aging is calculated from the date of its initial recognition. If the terms and conditions of other receivables are
modified but do not result in the derecognition of other receivables, the aging shall be calculated consecutively.
16.Inventory
16.1 Inventory Category, Goods Out Pricing Method, Inventory System, Amortization Method for Low-Value
Consumables and Packaging
16.1.1 Inventory Category
The Group's inventory mainly includes raw materials, products in process, finished products and materials
entrusted for processing. Inventory is initially measured at cost, which includes purchasing cost, processing cost and
other expenses incurred to make inventory reach the current place and use state.
16.1.2 Goods Out Pricing Method
When the inventory is issued, the actual cost of the issued inventory is determined by the weighted mean
method.
16.1.3 Inventory system
The inventory system is perpetual inventory system.
16.1.4 Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-off
method.
16.2 Recognition criteria and accrual method of provision for inventory falling price loss
On the balance sheet date, inventories are measured according to the lower of cost and net realizable value.
When the net realizable value is lower than the cost, the inventory depreciation provision is withdrawn.
Net realizable value refers to the estimated selling price of inventory minus the estimated cost, estimated sales
expenses and related taxes and fees at the time of completion in daily activities. When determining the net realizable
value of inventory, it is based on the conclusive evidence obtained, and the purpose of holding inventory and the
influence of events after the balance sheet date are also considered.
Inventory depreciation provision is drawn according to the difference between the cost of a single inventory
item and its net realizable value.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
After the inventory depreciation provision is withdrawn, if the influencing factors of previous write-down of
inventory value have disappeared, resulting in the net realizable value of inventory being higher than its book value,
it will be reversed within the original amount of inventory depreciation provision, and the reversed amount will be
included in the current profits and losses.
17. Long-term equity investment
17.1 Criteria for joint control and important influence
Control means that the investor has the power over the investee, enjoys variable returns by participating in the
related activities of the investee, and has the ability to influence the amount of returns by using the power over the
investee. Joint control refers to the common control of an arrangement according to the relevant agreement, and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control rights
before making decisions. Significant influence refers to the power to participate in decision-making on the financial
and operating policies of the investee, but it cannot control or jointly control the formulation of these policies with
other parties. When determining whether the investee can be controlled or exert significant influence, the potential
voting rights factors such as convertible corporate bonds and current executable warrants of the investee held by
investors and other parties have been considered.
17.2 Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control, the initial investment
cost of the long-term equity investment shall be the share of the book value of the owners' equity of the merged
party in the consolidated financial statements of the final controlling party on the merger date. The capital reserve
shall be adjusted for the difference between the initial investment cost of long-term equity investment and the book
value of cash paid, non-cash assets transferred and debts undertaken; If the capital reserve is insufficient to be offset,
the retained income shall be adjusted. If equity securities are issued as the merger consideration, the initial
investment cost of long-term equity investment shall be the share of the book value of the owners' equity of the
merged party in the consolidated financial statements of the final controlling party on the merger date, the share
capital shall be the total face value of issued shares, and the capital reserve shall be adjusted according to the
difference between the initial investment cost of long-term equity investment and the total face value of the issued
shares; If the capital reserve is insufficient to be offset, the retained income shall be adjusted.
For the long-term equity investment obtained from the business merger not under the same control, the initial
investment cost of the long-term equity investment shall be the merger cost on the purchase date.
Intermediary expenses such as audit, legal services, evaluation and consultation and other related management
expenses incurred by the merging party or the purchaser for business merger are included in the current profits and
losses when incurred.
Long-term equity investment obtained by other means except the long-term equity investment formed by
business merger shall be initially measured at cost. If the additional investment can exert a significant influence or
implement joint control which however does not constitute control on the investee, the long-term equity investment
cost is the sum of the fair value of the original equity investment determined in accordance with the Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments plus the new
investment cost.
17.3 Subsequent measurement and profit and loss recognition method
17.3.1 Long-term equity investment calculated by cost method
The company's financial statements use the cost method to calculate the long-term equity investment in
subsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.
Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or
recover investment to adjust the cost of long-term equity investment. The current investment income is recognized
according to the cash dividend or profit declared by the investee.
17.3.2 Long-term equity investment calculated by equity method
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method. An
associated enterprise refers to the investee over which the Group can exert significant influence, and a joint venture
refers to a joint venture arrangement in which the Group has rights only over the net assets of the arrangement.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
When accounting by equity method, if the initial investment cost of long-term equity investment is greater than
the fair value share of the identifiable net assets of the investee, the initial investment cost of long-term equity
investment will not be adjusted; If the initial investment cost is less than the fair value share of the identifiable net
assets of the investee, the difference shall be included in the current profits and losses, and the cost of long-term
equity investment shall be adjusted.
When accounting by the equity method, the investment income and other comprehensive income are
recognized respectively according to the share of the net profit and loss and other comprehensive income realized by
the investee, and the book value of long-term equity investment is adjusted; The share is calculated according to the
profit or cash dividend declared by the investee, and the book value of long-term equity investment is reduced
accordingly; For other changes in the owners' equity of the investee except the net profit and loss, other
comprehensive income and profit distribution, the book value of the long-term equity investment shall be adjusted
and included in the capital reserve. When recognizing the share of the net profit and loss of the investee, the net
profit of the investee shall be adjusted and recognized based on the fair value of the identifiable assets of the
investee at the time of investment. If the accounting policies and accounting periods adopted by the investee are
inconsistent with those of the Company, the financial statements of the investee shall be adjusted according to the
accounting policies and accounting periods of the Company, so as to recognize the investment income and other
comprehensive income. For the transactions between the Group and the associated enterprises and joint ventures, if
the assets invested or sold do not constitute business, the unrealized internal transaction gains and losses shall be
offset by the portion belonging to the Group according to the proportion enjoyed, and the investment gains and
losses shall be recognized on this basis. However, the unrealized internal transaction losses between the Group and
the investee belong to the impairment losses of the transferred assets and shall not be offset.
When recognizing the share of the net loss of the investee, the book value of the long-term equity investment
and other long-term rights and interests that substantially constitute the net investment of the investee shall be
written down to zero. In addition, if the Group is obligated to bear additional losses to the investee, the estimated
liabilities will be recognized according to the expected obligations and included in the current investment losses. If
the investee realizes the net profit in the future, the Group will resume the recognition of the income share after the
income share makes up for the unrecognized loss share.
17.4 Disposal of long-term equity investment
When disposing of long-term equity investment, the difference between its book value and the actual purchase
price is included in the current profits and losses. For the long-term equity investment accounted by the equity
method, if the remaining equity after disposal is still accounted by the equity method, other comprehensive income
originally accounted by the equity method shall be accounted for on the same basis as the direct disposal of related
assets or liabilities by the investee; Owners' equity recognized by changes in other owners' equity of the investee
except net profit and loss, other comprehensive income and profit distribution shall be carried forward to current
profits and losses in proportion. If the long-term equity investment accounted for by the cost method is still
accounted for by the cost method after disposal, the other comprehensive income recognized by the equity method
accounting or the recognition of financial instruments and accounting standards before gaining control of the
investee shall be accounted for on the same basis as the direct disposal of related assets or liabilities by the investee;
Changes in owners' equity other than net profit and loss, other comprehensive income and profit distribution in the
net assets of the investee recognized by using the equity method are carried forward to the current profits and losses
in proportion.
If the Group loses control of the investee due to the disposal of part of its equity investment, if the remaining
equity after disposal can exercise joint control or exert significant influence on the investee in the preparation of
individual financial statements, it shall be accounted for by the equity method instead, and the remaining equity
shall be treated as if it were adjusted by the equity method at the time of acquisition; If the remaining equity after
disposal cannot be jointly controlled or exert significant influence on the investee, it shall be accounted for
according to the relevant provisions of the standards for the recognition and measurement of financial instruments,
and the difference between its fair value and book value on the date of control loss shall be included in the current
profits and losses. For other comprehensive income recognized by the Group before it gains control of the investee,
when it loses control of the investee, it shall be treated on the same basis as the direct disposal of related assets or
liabilities by the investee. Changes in owners' equity in the net assets of the investee, except net profit and loss, other
comprehensive income and profit distribution, shall be carried forward to current profits and losses when it loses
control of the investee. If the remaining equity after disposal is accounted by the equity method, other
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
comprehensive income and other owners' equity will be carried forward in proportion; If the remaining equity after
disposal is changed to accounting treatment according to the recognition and measurement standards of financial
instruments, all other comprehensive income and other owners' equity will be carried forward.
If the Group loses joint control or significant influence on the investee due to the disposal of some equity
investments, the remaining equity after disposal shall be accounted for according to the recognition and
measurement standards of financial instruments, and the difference between its fair value and book value on the date
of joint control loss or significant influence shall be included in the current profits and losses. Other comprehensive
income recognized by the original equity investment due to accounting by the equity method shall be accounted for
on the same basis as the direct disposal of relevant assets or liabilities by the investee when the equity method is
terminated. All the owners' equity recognized by the investee due to changes in other owners' equity except net
profit and loss, other comprehensive income and profit distribution shall be carried forward to the current
investment income when the equity method is terminated.
The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions until
it loses control. If the above transactions belong to a package transaction, each transaction will be treated as a
transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control, the
difference between the price of each disposal and the book value of the long-term equity investment corresponding
to the disposed equity will be recognized as other comprehensive income, and then carried forward to the current
profits and losses when it loses control.
Provision forinventory falling price loss is generally made on the basis of a single inventory item.
18. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation, or both, including rented
houses and buildings.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate
are included in the cost of investment real estate if the economic benefits related to the asset are likely to flow in and
the cost can be measured reliably. Other subsequent expenditures are included in the current profits and losses when
incurred.
The Group adopts a cost model for subsequent measurement of investment properties, and adopts the average life
method to provide depreciation over the useful life. The depreciation methods, depreciation periods, estimated
residual value rates and annual depreciation rates for various types of investment real estate are as follows:
Depreciation period Annual Depreciation
Category Residual value rate (%)
(years) Rate (%)
Houses, buildings 10-40 0.00-4.00 2.40-10.00
When the investment real estate is disposed of, or permanently withdrawn from use, and it is not expected to
obtain economic benefits from its disposal, the recognition of the investment real estate will be terminated.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deducting its book value and related taxes is included in the current profits and losses.
19. Fixed assets
19.1 Recognition conditions
Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management, with
a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits related to
them are likely to flow into the Group and their costs can be measured reliably. Fixed assets are initially measured at
cost.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economic
benefits related to the fixed assets are likely to flow in and the cost can be measured reliably, and the book value of
the replaced part shall be derecognized. Other subsequent expenditures are included in the current profits and losses
when incurred.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
19.2 Depreciation method
Fixed assets shall be depreciated within their service life by using the life-average method from the month
following the scheduled serviceable state. The depreciation methods, service life, estimated net salvage and annual
depreciation rate of various fixed assets are as follows:
Estimated net salvage Annual depreciation
Category Depreciation life (year)
rate (%) rate (%)
Houses and buildings 10-40 0.00-4.00 2.40-10.00
Machinery equipment 10-14 4.00 6.86-9.60
Transportation equipment 8 4.00 12.00
Electronic equipment and others 5 4.00 19.20
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixed assets after
deducting the estimated disposal expenses, assuming that the expected service life of the fixed assets has expired and
is in the expected state at the end of the service life.
19.3 Other instructions
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through the
use or disposal, the fixed assets is derecognized. The difference between the disposal income from the sale, transfer,
scrapping or damage of fix assets after deducting its book value and related taxes is included in the current profits and
losses.
At least at the end of the year, the Group will review the service life, estimated net salvage and depreciation
method of fixed assets, and if there is any change, it will be treated as a change in accounting estimate.
20. Construction in progress
The construction in progress is measured according to the actual cost, which includes various project expenditures
incurred during the construction period, capitalized borrowing costs before the project reaches the scheduled
serviceable state and other related expenses. No depreciation is allowed for construction in progress.
Construction in progress is carried forward as a fixed asset when it reaches the intended usable state. The standards
and timing points for the carry-forward of various types of projects under construction into fixed assets are as follows:
The time point at
which it is carried
Category The criteria for carrying forward to fixed assets
forward to a fixed
asset
The equipment has been accepted by asset management personnel and
user personnel and meets one or more of the following conditions
according to the actual situation:
(1) Relevant equipment and other supporting facilities have been
Installation of machinery and It has reached the
installed;
equipment intended usable state
(2) The equipment can maintain normal and stable operation for a
period of time after debugging;
(3) The production equipment can stably produce qualified products for
a period of time.
21. Borrowing costs
Borrowing costs that can be directly attributed to the purchase, construction or production of assets that meet
the capitalization conditions will be capitalized when the asset expenditure has occurred, the borrowing costs have
occurred, and the necessary purchase, construction or production activities to make the assets reach the
predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet the
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
capitalization conditions purchased, constructed or produced reach the predetermined serviceable state or saleable
state. The remaining borrowing costs are recognized as expenses in the current period.
22. Intangible assets
22.1 Useful life and the basis for its determination, estimates, amortization method or review procedure
Intangible assets include land use rights, software and patent rights.
Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized by
straight-line method in equal installments within their expected service life from the time they are available for use.
Intangible assets with uncertain service life shall not be amortized. The amortization method, service life and
estimated net salvage of various intangible assets are as follows:
Amortization Estimated net
Category Service life (year)
method salvage rate (%)
Straight-line
Land use right 50(Legal Right to Use) -
method
Straight-line 5(The useful life is determined by the period of time that is
Software -
method expected to bring economic benefits to the company)
Straight-line 15(The useful life is determined by the period of time that
Patent -
method is expected to bring economic benefits to the company)
At the end of the period, the service life and amortization method of intangible assets with limited service life
shall be reviewed and adjusted if necessary.
For the impairment test of intangible assets, please refer to Note (III) 22 "Impairment of Long-term Assets" for
details.
22.2 Post-employment benefits are all defined contribution plan.
Expenditure in the research stage is included in the current profits and losses when incurred.
Expenditures in the development stage are recognized as intangible assets if they meet the following conditions
at the same time. Expenditures in the development stage that cannot meet the following conditions are included in the
current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, which can prove their usefulness;
(4) Having sufficient technical, financial and other resources to support the development of the intangible assets,
and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure, all the
R&D expenditures incurred shall be included in the current profits and losses. The cost of intangible assets formed by
internal development activities only includes the total expenditure from the time when the capitalization conditions
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
are met to the time when the intangible assets reach the intended use, and the expenditure that has been expensed into
profit and loss before the capitalization conditions are met in the development process will not be adjusted.
23. Long-term asset impairment
On each balance sheet date, the Group checks whether there are signs that long-term equity investment,
investment real estate measured by cost method, fixed assets, construction in progress, right-to-use assets and
intangible assets with definite service life may be impaired. If these assets show signs of impairment, the recoverable
amount is estimated. Intangible assets with uncertain service life and intangible assets that have not yet reached the
serviceable state are tested for impairment every year, regardless of whether with signs of impairment.
Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group is determined based on the asset
group to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the asset
or asset group minus the disposal expenses or the present value of its expected future cash flow.
If the recoverable amount of an asset is lower than its book value, the asset impairment provision shall be
accrued according to the difference and included in the current profits and losses.
Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of
goodwill, it shall be conducted in combination with the related asset group or asset group portfolio. That is, from the
purchase date, the book value of goodwill is allocated to the asset group or asset group portfolio that can benefit from
the synergistic effect of business merger in a reasonable way. If the recoverable amount of the asset group or asset
group portfolio containing the allocated goodwill is lower than its book value, the corresponding impairment loss will
be recognized. The amount of impairment loss will firstly deduct the book value of goodwill allocated to the asset
group or asset group portfolio, and then deduct the book value of other assets according to the proportion of the book
value of assets other than goodwill in the asset group or asset group portfolio.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in future accounting
periods.
24. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current period
and subsequent periods with an amortization period of more than one year. Long-term deferred expenses shall be
amortized evenly by stages during the expected benefit period.
25. Contractual liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and liabilities under the same contract are listed
on a net basis.
26. Employee Remuneration
26.1 Accounting treatment method of short-term Remuneration
During the accounting period when employees provide services for the Group, the Group recognizes the actual
short-term remuneration as a liability, and records it into the current profits and losses or related asset costs. The
employee welfare expenses incurred by the Group are included in the current profits and losses or related asset costs
according to the actual amount when actually incurred. If employee welfare expenses are non-monetary benefits, they
shall be measured at fair value.
The social insurance premiums such as medical insurance premium, work injury insurance premium and
maternity insurance premium and housing provident fund paid by the Group for employees, as well as the trade union
funds and employee education funds withdrawn by the Group according to regulations, shall be calculated according
to the stipulated accrual basis and accrual ratio during the accounting period when employees provide services for the
Group to determine the employee compensation amount, and recognize the corresponding liabilities, and be included
in the current profits and losses or related asset costs.
26.2 Accounting treatment of post-employment benefits
Post-employment benefits are all defined contribution plans.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
During the accounting period when employees provide services for the Group, the amount payable calculated
according to the set deposit plan is recognized as a liability, and included in the current profits and losses or related
asset costs.
26.3 Accounting treatment of dismissal benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from the
dismissal benefits shall be recognized at the earlier of the following two dates, and included in the current profits and
losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to terminate labor
relations or the proposal to cut back; When the Group recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
27. Estimated liabilities
When the obligation related to contingencies such as customer return are the current obligations undertaken by the
Group, and the fulfillment of this obligation is likely to lead to the outflow of economic benefits, and the amount of this
obligation can be measured reliably, it is recognized as estimated liabilities.
On the balance sheet date, considering the risk, uncertainty and time value of money related to contingencies, the
estimated liabilities are measured according to the best estimate of the expenditure required to fulfill the relevant
current obligations. If the time value of money is significant, the best estimate is determined by the discounted amount
of expected future cash outflow.
28.Revenue
28.1 Accounting policy used for measurement and revenue recognition disclosure according to type of business
The Group has fulfilled its contractual obligation, that is, when the customer obtains the control right of the
relevant goods or services, the income will be recognized according to the transaction price allocated to the
performance obligation. Performance obligation refers to the commitment of the Group to transfer clearly
distinguishable goods or services to customers in the contract. Transaction price refers to the amount of consideration
that the Group is expected to receive due to the transfer of goods or services to customers, which however, does not
include the money received on behalf of third parties and the money that the Group expects to return to customers.
The Group evaluates the contract on the start date of the contract, identifies the individual performance obligations
contained in the contract, and determines whether each individual performance obligation is performed within a certain
period of time or at a certain point of time. If one of the following conditions is met, it belongs to the performance
obligation within a certain period of time, and the Group recognizes the income within a certain period of time
according to the performance progress: (1) The customer obtains and consumes the economic benefits brought by the
performance of the Group; (2) The customer can control the goods under construction during the performance of the
Group; (3) The goods produced by the Group during the performance of the contract have irreplaceable purposes, and
the Group has the right to collect money for the accumulated performance part completed so far during the whole
contract period. Otherwise, the Group recognizes income at the point when the customer obtains control over the
relevant goods or services.
Transaction price refers to the amount of consideration that the Group expects to be entitled to receive as a result of the
transfer of goods or services to the customer, but does not include payments received on behalf of a third party and
amounts expected to be refunded to the customers by the Group. In determining the transaction price, the Group takes
into account the impact of factors such as variable consideration, significant financing elements in the contract, non-
cash consideration, consideration payable to customers, etc.
If the contract contains two or more performance obligations, the Group will allocate the transaction price to each
individual performance obligation on the contract start date according to the relative proportion of the separate selling
price of the goods or services promised by each individual performance obligation. However, if there is conclusive
evidence that the contract discount or variable consideration is only related to one or more (but not all) performance
obligations in the contract, the Group will allocate the contract discount or variable consideration to one or more
related performance obligations. Separate selling price refers to the price at which the Group sells goods or services to
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
customers separately. If the separate selling price cannot be directly observed, the Group comprehensively considers all
relevant information that can be reasonably obtained, and estimates the separate selling price by using observable input
values to the maximum extent.
For sales with return clauses, when the customer obtains the control right of the relevant goods, the Group
recognizes the income according to the amount of consideration expected to be charged due to the transfer of goods to
the customer (that is, excluding the amount expected to be refunded due to sales return), and recognizes the liabilities
according to the amount expected to be refunded due to sales return; At the same time, according to the book value of
the expected returned goods at the time of transfer, the balance after deducting the expected cost of recovering the
goods (including the loss of the value of the returned goods) is recognized as an asset, and the net carry-over cost of the
above assets is deducted according to the book value of the transferred goods at the time of transfer.
For sales with quality assurance clauses, if the quality assurance provides a separate service in addition to assuring
customers that the goods or services sold meet the established standards, the quality assurance constitutes a single
performance obligation. Otherwise, the Group shall handle the quality assurance responsibility in accordance with the
Accounting Standards for Business Enterprises No.13-Contingencies.
According to whether the Group has control over the goods or services before transferring them to customers, the
Group judges whether it is the main responsible person or the agent when engaging in transactions. If the Group can
control the goods or services before transferring them to customers, the Group is the main responsible person, and the
income is recognized according to the total consideration received or receivable; Otherwise, the Group, as an agent,
recognizes income according to the expected amount of commission or handling fee, which is determined according to
the net amount of the total consideration received or receivable after deducting the price payable to other interested
parties.
If the Group receives the payment for the sale of goods or services from customers in advance, it will first
recognize the payment as a liability, and then change it to income when the relevant performance obligations are
fulfilled. When the advance payment of the Group does not need to be returned, and the customer may give up all or
part of its contractual rights, if the Group is expected to be entitled to the amount related to the contractual rights given
up by the customer, the above amount will be recognized as income in proportion according to the mode of the
customer's exercise of contractual rights; Otherwise, the Group will only convert the relevant balance of the above
liabilities into income when it is extremely unlikely that the customer will demand to perform the remaining
performance obligations.
Please refer to Note (III) 30.2.2 "The Group as a lessor records the operating leasing business" for the accounting
policy of the Group's income recognition in property leasing.
29. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from the
government free of charge. Government subsidies are recognized when they can meet the conditions attached to
government subsidies and can be received.
If government subsidies are monetary assets, they shall be measured according to the amount received or
receivable.
29.1 Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group's
government subsidies, these government subsidies are government subsidies related to assets.
Government subsidies related to assets are recognized as deferred income, and are included in the current profits
and losses in installments according to the straight-line method within the service life of the related assets.
29.2 Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies, such as industry development support funds, enterprise development
support funds and tax subsidies, cannot form long-term assets, these government subsidies are government subsidies
related to income.
Government subsidies related to income, if used to compensate related costs and losses in future periods, will be
recognized as deferred income, and are included in the current profits and losses during the period when related costs
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
or expenses are recognized; if used to compensate the related costs and losses that have occurred, will be directly
included in the current profits and losses.
Government subsidies related to the daily activities of the Group are included in other income according to the
nature of economic business. Government subsidies unrelated to the daily activities of the Group are included in non-
operating income.
When the confirmed government subsidy needs to be returned, if there is a relevant deferred revenue balance,
the relevant deferred income book balance will be offset, and the excess will be included in the current profits and
losses; If there is no relevant deferred income, it will be directly included in the current profits and losses.
30.Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within
a certain period of time.
On the commencement date of the contract, the Group evaluates whether the contract is a lease or contains a
lease. Unless the terms and conditions of the contract change, the Group will not re-evaluate whether the contract is a
lease or contains a lease.
30.1 The Group as the lessee
30.1.1 Split of lease
If the contract contains one or more leased and non-leased parts at the same time, the Group will split each
separate leased and non-leased part and allocate the contract consideration according to the relative proportion of the
sum of the separate prices of each leased part and the non-leased part.
30.1.2 Right-to-use assets
Except for short-term leases, the Group recognizes the right-to-use assets on the start date of lease term. The
start date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group. The
right-to-use assets is initially measured according to the cost. The cost includes:
Initial measurement amount of lease liabilities;
For the lease payment paid on or before the start date of the lease term, if there are lease incentives, deduct the
amount related to the lease incentives enjoyed;
Initial direct expenses incurred by the Group;
The estimated costs incurred by the Group for dismantling and removing the leased assets, restoring the premises
where the leased assets are located or restoring the leased assets to the state agreed in the lease clauses.
The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-Fixed
Assets, and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it has acquired the
ownership of the leased assets at the expiration of the lease term, the right-to-use assets will be depreciated 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.
According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Group
determines whether the right-to-use assets have been impaired, and carries out accounting treatment for the identified
impairment losses.
30.1.3Lease liabilities
Except for short-term leases, the Group initially measures the lease liabilities on the start date of lease term
according to the present value of the unpaid lease payment on that date. When calculating the present value of the
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
lease payment, the Group uses the lease interest rate as the discount rate. If the lease interest rate cannot be determined,
the incremental loan interest rate is used as the discount rate.
Lease payment refers to the amount paid by the Group to the lessor related to the right to use the leased assets
during the lease term, including:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of
lease incentive shall be deducted;
Variable lease payment amount depending on index or ratio;
The exercise price of the option reasonably determined by the Group to be exercised;
The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise the option;
The amount expected to be paid according to the residual value of the guarantee provided by the Group.
After the start of the lease term, the Group calculates the interest expense of the lease liabilities in each period of
the lease term at a fixed periodic interest rate, and includes it in the current profits and losses or related asset costs.
After the commencement of the lease term, if the following circumstances occur, the Group will re-measure the
lease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the Group will include the difference in the
current profits and losses:
If the lease term changes or the evaluation result of the purchase option changes, the Group will re-measure the
lease liabilities according to the present value calculated by the changed lease payment amount and the revised
discount rate;
If the estimated payable amount according to the guarantee residual value or the index or proportion used to
determine the lease payment changes, the Group will re-measure the lease liabilities according to the present value
calculated by the changed lease payment amount and the original discount rate.
30.1.4 As the judgment basis and accounting treatment method for the lessee to simplify the treatment of the
short-term lease
For the short-term lease of some factories and some rented warehouses, the Group chooses not to recognize the
right-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months and does not
include the option to purchase on the start date of the lease term. The Group will charge the lease payment for short-
term lease to the current profits and losses or related asset costs in accordance with the straight-line method in each
period of the lease term.
30.1.5 Lease change
If the lease changes and the following conditions are met at the same time, the Group will carry out accounting
treatment on the lease change as a separate lease:
The lease change expands the lease scope by increasing the right to use one or more leased assets;
The increased consideration is equivalent to the individual price of the expanded part of the lease scope adjusted
according to the contract situation.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the Group
will re-allocate the consideration of the changed contract, re-determine the lease term, and re-measure the lease
liabilities according to the present value calculated by the changed lease payment and the revised discount rate.
If the lease scope is reduced or the lease term is shortened due to lease change, the Group shall correspondingly
reduce the book value of the right-to-use assets, and include the related gains or losses of partial or full termination of
lease in the current profits and losses. If other lease changes lead to the re-measurement of lease liabilities, the Group
will adjust the book value of the right-to-use assets accordingly.
30.2 The Group as the lessor
30.2.1 Split of lease
If the contract contains both leased and non-leased parts, the Group will allocate the contract consideration
according to the provisions of the Accounting Standards for Business Enterprises Revenues on transaction price
allocation, and the basis of allocation is the separate prices of the leased part and the non-leased part.
30.2.2 Classification and accounting treatment for rental housing leases
A lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets is a
financial lease. Other leases except financing lease are operating leases.
30.2.2.1 The Group as a lessor records the operating lease business
During each period of the lease term, the Group adopts the straight-line method to recognize the lease receipts
from operating lease as rental income. The initial direct expenses incurred by the Group in connection with operating
leases are capitalized when incurred, apportioned on the same basis as rental income recognition during the lease term,
and included in current profits and losses in installments.
The variable lease receipts related to operating leases obtained by the Group, which are not included in the lease
receipts, are included in the current profits and losses when actually incurred.
30.2.3 Lease change
If the operating lease is changed, the Group will carry out accounting treatment on it as a new lease from the
effective date of the change, and the lease receipts received in advance or receivable related to the lease before the
change will be regarded as the receipts of the new lease.
31. Deferred income tax assets/Deferred income tax liabilities
Income tax expenses include current income tax and deferred income tax.
31.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periods
shall be measured by the expected income tax payable (or refunded) calculated in accordance with the provisions of the
tax law.
31.2 Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis, and the temporary
difference between the book values of items that are not recognized as assets and liabilities but can be determined in
tax basis according to the provisions of the tax law and tax basis, the balance sheet liability method is adopted to
recognize deferred income tax assets and deferred income tax liabilities.
In general, all temporary differences are recognized as related deferred income tax. However, for deductible
temporary differences, the Group recognizes related deferred income tax assets to the extent that it is likely to obtain
taxable income to offset the deductible temporary differences. In addition, for the temporary differences related to the
initial recognition of goodwill and the initial recognition of assets or liabilities arising from transactions that are neither
business merger nor affect accounting profits and taxable income (or deductible losses), the relevant deferred income
tax assets or liabilities are not recognized.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
For deductible losses and tax deductions that can be carried forward to future years, the corresponding deferred
income tax assets are recognized to the extent that it is likely to obtain future taxable income for deducting deductible
losses and tax deductions.
The Group recognizes deferred income tax liabilities arising from taxable temporary differences related to
investments in subsidiaries, associated enterprises and joint ventures, unless the Group can control the time when the
temporary differences are reversed, and the temporary differences are unlikely to be reversed in the foreseeable future.
For deductible temporary differences related to the investments of subsidiaries, associated enterprises and joint
ventures, the Group recognizes the deferred income tax assets only when the temporary differences are likely to be
reversed in the foreseeable future and the taxable income used to offset the deductible temporary differences is likely to
be obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be measured
according to the applicable tax rate during the expected recovery of related assets or settlement of related liabilities.
Except that the current income tax and deferred income tax related to transactions and events directly included in
other comprehensive income or shareholders' equity are included in other comprehensive income or shareholders'
equity, and the deferred income tax arising from business merger adjusts the book value of goodwill, the remaining
current income tax and deferred income tax expenses or gains are included in the current profits and losses.
On the balance sheet date, the book value of deferred income tax assets shall be rechecked. If it is probable that
sufficient taxable income will not be obtained in the future to offset the benefits of deferred income tax assets, the book
value of deferred income tax assets shall be written down. When sufficient taxable income is likely to be obtained, the
amount written down will be reversed.
31.3 Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire assets and
pay off liabilities at the same time, the Group's current income tax assets and current income tax liabilities are
presented on an offset net basis.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis, and the
deferred income tax assets and liabilities are related to the income tax levied by the same tax collection department on
the same taxpayer or to different taxpayers, but in the future, the taxpayers involved intend to settle the current income
tax assets and liabilities on a net basis, or acquire assets and pay off liabilities at the same time, the Group's deferred
income tax assets and liabilities are presented on an offset net basis.
32. Changes in important accounting policies and accounting estimates, and correction of previous errors
32.1 Changes in significant accounting policy
On November30, 2022, the Ministry of Finance (MOF) issued Interpretation No. 16 of Accounting Standards for
Business Enterprises ("Interpretation No. 16"), clarifying that the accounting treatment of deferred income tax related
to assets and liabilities arising from a single transaction is not subject to the initial recognition exemption.
Interpretation No. 16 revises the scope of the initial recognition exemption of deferred income tax in Accounting
Standard for Business Enterprises No. 18-Income Tax, clarifying that Accounting Standard for Business Enterprises
No. 18-Income Tax-provisions regarding exemption from the initial recognition of deferred tax liabilities and deferred
tax assetsdoes not apply to individual transaction that is not a business combination and the transaction does not affect
neither the accounting profit nor the taxable income (or deductible loss) at the time of the transaction occurs, and the
assets and liabilities initially recognized result in the same amount of taxable temporary differences to the deductible
temporary differences . The regulations will come into force on January 1, 2023 and can be implemented in advance.
After assessment, the Group considers that the adoption of this regulation will not have a significant impact on the
Group's financial statement.
32.2 Significant Changes in Accounting Estimates
There are no significant changes in the Group's accounting estimates during the year.
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
IV. Taxes
1. Main tax categories and tax rates
Tax category Tax basis Tax rate
The output tax for domestic sales is
The balance after deducting the deductible input tax calculated according to 13%, 9%, 6% and
from the output tax; The tax calculation method of 5% of the sales amount calculated
VAT
"exemption, offset and refund" is applied to sales of according to relevant tax regulations, and
export products the tax rebate rate for export products is
13%
Urban maintenance and
Payable turnover tax 7%
construction tax
Surcharge for education Payable turnover tax 3%
Local education
Payable turnover tax 2%
surcharge
Business income tax Payable turnover tax 25%、20%、15%、8.25%
Residual value or rental income after deducting 30%
Property tax 1.2%
from the original value of property at one time
The disclosure statement if there are taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
The Company 25%
Shenzhen Shenfang Property Management Co., Ltd. 25%
Shenzhen Shengjinlian Technology Co., Ltd. 25%
Shenzhen Beauty Century Garment Co., Ltd. 20% (Note 1)
Shenzhen Lisi Industrial Co., Ltd. 20% (Note 1)
Shenzhen Shenfang Sungang Property Management Co., Ltd. 20% (Note 1)
Shenzhen Huaqiang Hotel 20% (Note 1)
Shengtou（HK）Co., Ltd. 8.25% ( Note 2)
Shenzhen SAPO Photoelectric Co., Ltd. 15% (Note 3)
Note 1: See Notes (IV), 2 (2) for details.
Note 2: According to the Tax Ordinance of Hong Kong, Hong Kong companies applied the two-tier system of
profits tax , and the first profit of HK$ 2 million will be calculated and paid at 8.25%, and the profits generated
thereafter will be calculated at 16.5%.
Note 3: See Notes (IV), 2(1) for details.
2. Tax preference
(1) In 2022, SAPO Photoelectric, a subsidiary of the Company, was jointly recognized as a high-tech enterprise by
Shenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau and Shenzhen Tax Service,
State Taxation Administration, respectively, with a certification period of 3 years, and the certificate numbers of
GR202244204504 respectively. It shall apply the preferential tax policies for high-tech enterprises within three
years after it is recognized as a high-tech enterprise, and pay enterprise income tax at the rate of 15% after being
filed by the competent tax bureau.
(2) The Company's subsidiaries Shenzhen Beauty Century Garment Co., Ltd., Shenzhen Huaqiang Hotel Co., Ltd.,
Shenzhen Lisi Industrial Development Co., Ltd. and Shenzhen Shenfang Sungang Property Management Co., Ltd. are
qualified small and low-profit enterprises, and according to the Announcement of the State Administration of Taxation
of the Ministry of Finance on Further Implementing the Preferential Income Tax Policies for Small and Micro
Enterprises (No. 13 of 2022) and the announcement of the State Administration of Taxation of the Ministry of Finance
- 50 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
on the preferential income tax policies for small and micro enterprises and individual industrial and commercial
households (No. 6 of 2023),the part of the annual taxable income of small and low-profit enterprises not exceeding
RMB 3 million will be reduced to include in the taxable income by 25%, and the enterprise income tax will be paid at
the rate of 20%.
(3) In accordance with the relevant provisions of the Notice of the State Administration of Taxation of the General
Administration of Customs of Ministry of Finance on Import Tax Policies for Supporting the Development of the New
Display Device Industry (No. 19[2021]Cai Guan Shui ), SAPO Photoelectric , a subsidiary of the Company, meets the
relevant conditions and enjoys the policy of exemption from import duties for related products from January 1, 2021 to
December 31, 2030.
(4)According to the relevant provisions of the Announcement of the State Administration of Taxation of the Ministry
of Finance on Clarifying the Policies for VAT Reduction and Exemption for Small-scale VAT Taxpayers
(Announcement No. 1 [2023] of the State Administration of Taxation of the Ministry of Finance), SAPO Photoelectric ,
a subsidiary of the Company, meets the relevant conditions and is eligible to enjoy the policy for taxpayers of the
production service industry to offset the tax payable for the period from January 1, 2023 to December 31, 2023in
accordance with the policy of 5% addition to the current period's deductible input tax amount to offset tax payable.
V. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 1,710.40 3,980.56
RMB 1,651.50 3,980.56
HKD 58.90 -
Bank deposit( Note 1) 462,967,619.54 874,795,302.32
RMB 396,264,667.05 853,053,825.65
USD 62,535,102.56 17,490,003.77
Yen 3,440,280.17 4,200,382.59
HKD 727,569.76 51,090.31
Other monetary capital(Note 2)： 9,305,118.06 116,990,685.31
RMB 9,305,118.06 116,929,425.84
Yen - 60,972.46
USD - 287.01
Total 472,274,448.00 991,789,968.19
Including : The total amount of deposit abroad - -
Note 1: Bank deposits include demand deposits and 7-day call deposit interest of RMB1,548,872.61.
Note 2: As of December 31, 2023, the Group's other monetary funds include RMB3,400,000.00 of funds whose use is
restricted due to account freezing and RMB5,905,118.06 of bill margin.
2. Transactional financial assets
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Financial assets measured at fair value and whose changes are
821,946,114.68 319,605,448.44
included in the current profits and losses
Including: money funds and structured deposits 821,946,114.68 319,605,448.44
3. Notes receivable
(1) Notes receivable listed by category
In RMB
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Balance at the end of this Balance at the end of last
Items
year year
Bank acceptance 50,963,943.01 74,619,100.26
(2) On December 31, 2023, the Group had no pledged bills receivable.
(3) On December 31, 2023, the notes receivable that have been endorsed or discounted by the Group and have not
yet matured on the balance sheet date
In RMB
Amount to be derecognized Amount not derecognized at the
Items
at the end of this year end of this year
Bank acceptance - 42,665,954.11
(4) By accrual of bad debt provision
In RMB
Balance at the end of this year Balance at the end of last year
Bad debt Bad debt
Book balance Book balance
provision provision
Accr Accr
Category Pro ual Book ual
Propo Book value
port prop value prop
Amount Amount Amount rtion Amount
ion ortio ortio
(%)
(%) n n
(%) (%)
With bad debt provision
- - - - - - - - - -
accrual on single item
with single minor
amount but withdrawal 50,963,94 100. 50,963,94 74,619,100. 100.0 74,619,100.2
- - - -
single item bad debt 3.01 00 3.01 26 0 6
provision
50,963,94 100. 50,963,94 74,619,100. 100.0 74,619,100.2
Bank acceptance bill - - - -
3.01 00 3.01 26 0 6
50,963,94 100. 50,963,94 74,619,100. 100.0 74,619,100.2
Total - / - /
3.01 00 3.01 26 0 6
(5) On December 31, 2023, the Group had no bills receivable actually written off.
4. Account receivable
1. (1)Disclosure by aging
In RMB
Aging Balance at the end of this year Balance at the end of last year
Within 1 year 848,526,236.04 670,780,300.16
1-2 years 1,640,043.18 614,645.76
2-3 years 618,907.34 -
Over 3 years 12,911,211.29 12,883,224.42
Total 863,696,397.85 684,278,170.34
(2) Classified disclosure by credit loss provision accrual method
On December 31, 2023, the credit risk and credit loss provision of the accounts receivable of the above portfolio
were as follows:
In RMB
Balance at the end of this year
Book balance Bad debt provision
Category Proportion Accrual proportion Book value
Amount Amount
(%) (%)
Account receivable that withdrawal bad 71,687,951.26 8.30 27,464,002.48 38.31 44,223,948.78
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
debt provision by single item
Account receivable withdrawal bad debt
792,008,446.59 91.70 16,097,561.42 775,910,885.17
provision by portfolio
Including：Portfolio 1 779,372,185.30 90.24 15,882,600.54 2.04 763,489,584.76
Portfolio 2 12,636,261.29 1.46 214,960.88 1.70 12,421,300.41
Total 863,696,397.85 100.00 43,561,563.90 820,134,833.95
In RMB
Amount at year-begin
Book balance Bad debt provision
Category Proportion Accrual proportion Book value
Amount Amount
(%) (%)
Account receivable that withdrawal bad
74,770,706.00 10.93 28,457,163.32 38.06 46,313,542.68
debt provision by single item
Account receivable withdrawal bad debt
609,507,464.34 89.07 19,237,537.09 590,269,927.25
provision by portfolio
Including：Portfolio 1 591,168,603.26 86.39 18,295,605.12 3.09 572,872,998.14
Portfolio 2 18,338,861.08 2.68 941,931.97 5.14 17,396,929.11
Total 684,278,170.34 100.00 47,694,700.41 636,583,469.93
As of December 31, 2023, the Company has no accounts receivable with significant individual provision for bad
debts.
As of December 31, 2023, the credit risk and bad debt provision for Portfolio 1 accounts receivable are as follows:
In RMB
Balance at the end of the year
Category )Expected average Provision for bad
Book balance Book value
loss ratio (%) debts
During the credit period 1.87 687,200,006.06 12,850,250.59 674,349,755.47
1-30 days overdue 2.49 88,368,765.06 2,204,379.13 86,164,385.93
31-60 days overdue 21.77 3,803,414.18 827,970.82 2,975,443.36
Total 779,372,185.30 15,882,600.54 763,489,584.76
As ofDecember 31, 2023, the credit risk and bad debt provision of Portfolio 2 accounts receivableare as follows:
In RMB
Balance at the end of the year
Ageing Expected average Provision for bad
Book balance Book value
loss ratio (%) debts
Within 1 year 1.55 12,569,011.29 194,785.88 12,374,225.41
2-3 years 30.00 67,250.00 20,175.00 47,075.00
Total 12,636,261.29 214,960.88 12,421,300.41
As o fDecember 31, 2023, the provision for bad debts is made based on the general model of expected credit losses.
In RMB
Stage 1 Stage 3
Bad Debt Reserves Expected credit losses over Expected credit losses for the entire Total
the next 12 months duration (credit impairment occurred)
Balance as at January 1, 2023 34,269,017.23 13,425,683.18 47,694,700.41
Balance as at January 1, 2023 in current - - -
-- Reversal to the II stage (125,323.83) - -
-- Reversal to the I stage - - -
Provision in Current Year 10,785,115.69 2,857,008.27 13,642,123.96
Reversal in Current Year (17,775,260.47) - (17,775,260.47)
Conversion in Current Year - - -
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Write off in Current Year - - -
Other change - - -
Balance as at 31 Dec. 2023 27,153,548.62 16,408,015.28 43,561,563.90
(3) Provision for bad debts
In RMB
Amount of change this year
Balance at
Write-off Balance at the
the
Category Recovery or or Other end of this
beginning of Accrual
reversal cancellati changes year
this year
on
Provision for bad debts 47,694,700.41 13,642,123.96 (17,775,260.47) - - 43,561,563.90
There is no bad debt provision recovered or reversed with amounts significant during the year.
（4） There are no accounts receivable actually written off during the year.
（5）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
Client 1 157,318,095.40 18.21 3,255,038.13
Client 2 124,972,436.40 14.47 2,437,300.46
Client 3 105,546,202.49 12.22 1,985,018.81
Client 4 62,902,335.60 7.28 1,242,469.89
Client 5 60,181,476.77 6.97 1,117,846.56
Total 510,920,546.66 59.15 10,037,673.85
5.Receivable financing
(1) Presentation of financings receivable classifications
In RMB
Balance at the end of the
Item Balance at the end of the year
previous year
Bank acceptance bill 22,839,459.13 54,413,796.91
The Group considers that the bank acceptance bills held by the Group have a high credit rating and do not have
significant credit risks, thus no provision for bad debts has been made.
(2) On December 31, 2023, the Group had no pledged receivable financing.
(3) On December 31, 2023, the receivable financing that have been endorsed or discounted by the Group and have not
yet matured on the balance sheet date
In RMB
Items Balance at the end of this year Balance at the end of last year
Bank acceptance bill 59,520,699.22 -
(4) On December 31, 2023,There are no Receivable financing actually written off during the year.
6.Prepayments
(1) List by aging analysis:
In RMB
Aging Balance at the end of this year Balance at the end of last year
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Amount Proportion % Amount Proportion %
Within 1 year 16,927,119.84 86.81 16,690,766.68 90.75
1-2 years 969,677.39 4.97 1,700,677.99 9.25
2-3 years 1,603,089.57 8.22 - -
Total 19,499,886.80 100.00 18,391,444.67 100.00
On December 31, 2023, the Group had no prepayments with an age of more than one year and a significant amount.
(2) Prepayments of the top five ending balances by prepayment object
The total amount of the top five year-end balances collected by prepayment objects is RMB 13,857,835.22,
accounting for 71.07% of the total year-end balances of prepayments.
7. Other receivables
(1) Disclosure by age
In RMB
Balance at the end of this Balance at the end of
Balance at the end of this year
year last year
Within 1 year 1,860,613.92 9,677,505.85
1-2 years 548,779.55 822,689.31
2-3 years 690,301.34 329,051.11
Over 3 years 18,115,521.40 18,154,298.53
Total 21,215,216.21 28,983,544.80
Less: Bad debt provision 17,994,930.79 18,397,569.42
Book value 3,220,285.42 10,585,975.38
(2) Disclosure by payment nature
In RMB
Book balance at the end Book balance at the
Payment nature
of this year end of last year
Current payment 15,350,589.97 16,330,801.03
Deposit and security deposit 2,000,722.80 2,801,300.29
Export rebate 710,026.13 1,023,715.60
Reserve funds and employee loans 577,183.94 580,028.97
Freeze funds - 6,559,327.26
Other 2,576,693.37 1,688,371.65
Total 21,215,216.21 28,983,544.80
(3) Provision for bad debts
As ofDecember 31, 2023, the provision for bad debts is made based on the general model of expected credit losses.
In RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit Expected credit loss losses for the entire
Bad Debt Reserves Total
losses over the next over life (no credit duration (credit
12 months impairment) impairment
occurred)
Balance as at January 1, 2023 494,588.28 198,890.09 17,704,091.05 18,397,569.42
Balance as at January 1, 2023 in current - - - -
——Transfer to stage II (28,089.18) 28,089.18 - -
——Transfer to stage III - (106,906.07) 106,906.07 -
-- Reversal to the II stage - - - -
-- Reversal to the I stage - - - -
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Provision in Current Year 671.40 158,326.45 7,224.50 166,222.35
Reversal in Current Year (393,251.53) (10,103.39) (165,506.06) (568,860.98)
Conversion in Current Year - - - -
Write off in Current Year - - - -
Other change - - - -
Balance as at 31 Dec. 2023 73,918.97 268,296.26 17,652,715.56 17,994,930.79
As ofDecember 31, 2023, the provision for bad debts is made based on the credit risk characteristics portfolio.
In RMB
Balance at the end of the year
Stage Expected average loss
Book balance Provision for losses Book value
ratio (%)
Other receivables for which provision
for credit losses is made based on the 84.82 21,215,216.21 17,994,930.79 3,220,285.42
credit risk characteristics portfolio
As of December 31, 2023, the credit risk and bad debt provision for other receivables are as follows:
In RMB
Balance at the end of the year
Aging of accounts
Book balance Provision for losses Book value 账面价值
Within 1 year 3.97 1,860,613.92 73,918.97 1,786,694.95
1-2 years 9.23 548,779.55 50,646.56 498,132.99
2-3 years 31.53 690,301.34 217,649.70 472,651.64
Over 3 years 97.45 18,115,521.40 17,652,715.56 462,805.84
Total 21,215,216.21 17,994,930.79 3,220,285.42
(4) Provision for bad debts
：
In RMB
Change amount for the year
Balance at the Balance at
Transfer
Category beginning of Recovery or Other the end of
Accrual or write
the year reversal changes the year
off
Expected credit loss over the entire 18,397,569.42 - - 17,994,930.
166,222.35 (568,860.98)
duration 79
18,397,569.42 - - 17,994,930.
Total 166,222.35 (568,860.98)
79
(5) There are no other accounts receivable actually written off during the year.
(6) The top five of the year-end balance of other receivables categorized by the debtor
In RMB
Proportion of
total balance Balance of
Balance at the of other The nature of the provision for
Other receivables Ageing
end of the year receivables at amount bad debts at the
the end of the end of the year
year (%)
The total amount of other Account current
Within 1 year,
receivables with the top five 16,287,801.03 76.77 receivables of 15,246,651.03
Over 3 years
balances at the end of the year external units
8. Inventories
- 56 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
（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 403,031,948.06 7,506,047.48 395,525,900.58 291,062,812.80 48,809,720.50 242,253,092.30
Processing products 309,068,674.96 64,610,590.25 244,458,084.71 258,881,779.59 41,882,202.00 216,999,577.59
Semi-finished 137,596,740.37 43,501,540.31 94,095,200.06 183,723,885.96 92,381,073.63 91,342,812.33
Commissioned
2,406,793.65 93,806.73 2,312,986.92 9,016,668.25 1,164,501.70 7,852,166.55
materials
Total 852,104,157.04 115,711,984.77 736,392,172.27 742,685,146.60 184,237,497.83 558,447,648.77
Note: The carrying balance of polarizer inventory is RMB838,447,375.38, and the corresponding provision for
price decline is RMB107,290,039.96.
（2）Inventory falling price reserves
In RMB
Increased in current period Decreased in current period
Reversed or Closing
Items Opening balance
Accrual collected Write-off Other balance
amount
Raw materials 48,809,720.50 1,768,514.83 - 43,072,187.85 - 7,506,047.48
Processing products 64,610,590.2
41,882,202.00 46,991,687.69 - 24,263,299.44 -
5
105,484,567.7 154,364,101.0 43,501,540.3
Semi-finished 92,381,073.63 - -
6 8 1
Commissioned
1,164,501.70 93,806.73 - 1,164,501.70 - 93,806.73
materials
154,338,577.0 222,864,090.0 115,711,984.
Total 184,237,497.83 - -
1 7 77
The specific basis for determining the net realizable value of inventories and the reasons for the provision for the
inventories price decline reversed or resold during the year:
The reason for the
reversal or resale of
The specific basis for determining the net realizable the provision for
Items
value inventory price
decline in the current
year
The net realizable value is determined by the
estimated selling price of the relevant finished
Raw materials, work-in-progress product, and Get used or sold in the
product, less the estimated costs to be incurred at
consignment materials year
completion, and less the estimated selling expenses
and the relevant taxes
The net realizable value of the inventory is
Finished products determined by the estimated selling price minus the Sold in the year
estimated selling expenses and related taxes
(3) On December 31, 2023, there was no amount in the inventory balance for guarantee and no amount for capitalization
of borrowing costs.
9. Other current assets
In RMN
Items Balance at the end of this Balance at the end of
- 57 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
year last year
VAT to be deducted and input tax to be certified 27,399,897.46 26,077,404.45
Advance payment of income tax 47,034.59 11,654.12
Receivable return cost 33,326,525.34 43,446,472.67
Total 60,773,457.39 69,535,531.24
10. Long-term equity investment
In RMB
Increase /decrease
Profits and
Cash Closing
Addi Decr losses on Withdra
bonus Closin balance
tiona ease investment Other Change wal of
Opening or g of
Investees l in s compre s in impair Othe
balance profits balanc impairme
inves inve Recognize hensive other ment r
announ e nt
tmen stme d under the income equity provisio
ced to provision
t nt equity n
issue
method
I. Joint ventures
Shenzhen Guanhua 122,37
129,506,271. (7,135,777
Printing & Dyeing Co., - - - - - - - 0,494. -
76 .68)
Ltd. 08
122,37
129,506,271. (7,135,777
Subtotal - - - - - - - 0,494. -
76 .68)
08
2. Affiliated Company
Shenzhen Changlianfa
3,358,
Printing & dyeing 3,105,796.55 - - 252,320.54 - - - - - -
117.09
Company
Hongkong Yehui (15,526.75 99,168. 1,953,
1,869,767.43 - - - - - - -
) 85 409.53
International Co., Ltd.
99,168. 5,311,
Subtotal 4,975,563.98 - - 236,793.79 - - - - -
85 526.62
127,68
134,481,835. (6,898,983 99,168.
Total - - - - - - 2,020. -
74 .89) 85
70
- 58 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
11. Other equity instruments investment
(1) Investment in other equity instruments
In RMB
Changes in the current year
Gains Reason designated
included in as being measured
Balance at Dividend Gains accrued Losses accrued
Additi Decrea other at fair value and
the end of income to other to other
Items onal se in comprehen Closing balance change being
the previous recognized comprehensive comprehensive
invest invest sive included in other
year during the year income income
ment ment income comprehensive
during the income
year
Planned to be held
Union Development Co., 125,753,939. (15,296,239.
- - - - 110,457,700.00 208,000.00 107,857,700.00 - by the Group for a
Ltd. 39 39)
long time.
Planned to be held
Shenzhen Dailishi 23,637,000.0 (5,895,100.0
- - - - 17,741,900.00 1,037,735.85 15,182,043.74 - by the Group for a
Underwear Co., Ltd. 0 0)
long time.
Planned to be held
Shenzhen South Textile 16,059,440.8 (1,256,040.8
- - - - 14,803,400.00 814,848.27 13,303,400.00 - by the Group for a
Co., Ltd. 8 8)
long time.
Planned to be held
Shenzhen Xinfang
2,227,903.00 - - 757,997.00 - - 2,985,900.00 148,000.00 2,461,900.00 - by the Group for a
Knitting Co., Ltd.
long time.
Planned to be held
Jintian Industry
- - - - - - - - - (14,831,681.50) by the Group for a
（Group）Co., Ltd.
long time.
167,678,283. (22,980,045.
Total - - 757,997.00 - 145,988,900.00 2,208,584.12 138,805,043.74 (14,831,681.50) /
27 07)
(2) Statement of the circumstances in which there is a derecognition during the year
As of December 31, 2023, there has been no derecognition of investments in other equity instruments.
- 59 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
12. Investment real estate
(1) Investment real estate adopted the cost measurement mode
In RMB
Items House, Building
I. Original price
1. Balance at period-beginning 328,128,815.41
2.Increase in the current period 22,238,626.99
(1)Outsourcing 644,437.82
(2) Transferred from Fixed assets 21,594,189.17
3.Decreased amount of the period -
（1）Dispose -
（2）Other out -
4. Balance at period-end 350,367,442.40
II.Accumulated amortization
1.Opening balance 201,812,980.65
2.Increased amount of the period 22,951,254.57
(1) Withdrawal 9,117,671.12
(2)Transferred from Fixed assets 13,833,583.45
3.Decreased amount of the period -
（1）Dispose -
（2）Other out -
4. Balance at period-end 224,764,235.22
III. Impairment provision
1. Balance at period-beginning -
2.Increased amount of the period -
(1) Withdrawal -
3.Decreased amount of the period -
（1）Dispose -
4. Balance at period-end -
IV. Book value
1.Book value at period -end 125,603,207.18
2.Book value at period-beginning 126,315,834.76
（2）Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants
Houses and Building 12,944,151.87
due to historical reasons
- 60 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
13. Fixed assets
(1) List of fixed assets
In RMB
Houses & Machinery
Items Transportations Other equipment Total
buildings equipment
I. Original price
1.Opening balance 742,709,971.36 2,655,871,126.91 15,875,027.26 50,483,511.70 3,464,939,637.23
2.Increased amount of the period 6,625,073.63 58,968,661.84 1,224,757.32 1,058,285.96 67,876,778.75
(1) Purchase 375,978.84 12,004,429.74 946,881.22 1,058,285.96 14,385,575.76
(2) Transferred from constructi
- 46,964,232.10 277,876.10 - 47,242,108.20
on in progress
(3)Other changes 6,249,094.79 - - - 6,249,094.79
3.Decreased amount of the period 21,655,211.05 3,405,884.77 8,888.71 7,002,175.11 32,072,159.64
（1）Disposal - 2,272,154.22 8,888.71 753,080.32 3,034,123.25
(2)Transferred from Real estate
21,594,189.17 - - - 21,594,189.17
investment
(3)Other changes 61,021.88 1,133,730.55 - 6,249,094.79 7,443,847.22
4. Balance at period-end 727,679,833.94 2,711,433,903.98 17,090,895.87 44,539,622.55 3,500,744,256.34
II. Accumulated depreciation
1.Opening balance 173,190,869.37 986,203,419.91 5,871,266.55 34,223,428.40 1,199,488,984.23
2.Increased amount of the period 30,063,009.36 195,106,408.71 2,005,472.53 5,841,471.09 233,016,361.69
(1) Withdrawal 23,813,914.57 195,106,408.71 2,005,472.53 5,841,471.09 226,767,266.90
(2) )Other changes 6,249,094.79 - - - 6,249,094.79
3.Decreased amount of the period 13,833,583.45 2,177,192.99 7,124.50 6,972,131.93 22,990,032.87
（1）Disposal - 2,177,192.99 7,124.50 723,037.14 2,907,354.63
(2)Transferred from Real estate
13,833,583.45 - - - 13,833,583.45
investment
(3)Other changes - - - 6,249,094.79 6,249,094.79
4.Closing balance 189,420,295.28 1,179,132,635.63 7,869,614.58 33,092,767.56 1,409,515,313.05
III. Impairment provision
1.Opening balance - 25,120,608.21 - 108,388.43 25,228,996.64
2.Increase in the reporting period 9,820,261.26 - 6,126.41 145,183.36 9,971,571.03
（1）Withdrawal - - - - -
(2) Other changes 9,820,261.26 - 6,126.41 145,183.36 9,971,571.03
3.Decrease in
- 9,971,571.03 - 6,291.08 9,977,862.11
the reporting period
（1）Disposal - - - 6,291.08 6,291.08
(2) Other changes - 9,971,571.03 - - 9,971,571.03
4. Closing balance 9,820,261.26 15,149,037.18 6,126.41 247,280.71 25,222,705.56
IV. Book value
1.Book value of the period-end 528,439,277.40 1,517,152,231.17 9,215,154.88 11,199,574.28 2,066,006,237.73
2.Book value of the period-begin 569,519,101.99 1,644,547,098.79 10,003,760.71 16,151,694.87 2,240,221,656.36
(2) Fixed assets without certificate of title completed
In RMB
Items Book Value Reason
Unable to apply for
Houses and Building 11,193,085.07 warrants due to historical
reasons
(3) Mortgaged and secured fixed assets
As of December 31, 2023, the Group's fixed assets mortgaged by bank loans are detailed in Notes (V), 21 "Assets with
restricted ownership or use right":
- 61 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
14. Construction in progress
14.1 Summary of projects under construction
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 31,307,060.74 38,061,619.60
14.2 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
Installation of machines
31,307,060.74 - 31,307,060.74 38,061,619.60 - 38,061,619.60
and equipment
15. Right to use assets
In RMB
Items Houses and Building
I. Original price
1.Opening balance 28,914,047.83
2.Increased amount of the period 11,048,317.88
(1)Newly increased 11,048,317.88
3.Decreased amount of the period 6,511,563.48
(1) Termination of lease 6,511,563.48
4. Balance at period-end 33,450,802.23
II. Accumulated depreciation
1.Opening balance 13,548,653.95
2.Increased amount of the period 8,257,857.90
(1) Withdrawal 8,257,857.90
3.Decreased amount of the period 355,176.19
(1) Termination of lease 355,176.19
4.Closing balance 21,451,335.66
III. Impairment provision
1.Opening balance -
2.Increase in the reporting period -
（1）Withdrawal -
3.Decrease in the reporting period -
4. Closing balance -
IV. Book value
1.Book value of the period-end 11,999,466.57
2.Book value of the period-begin 15,365,393.88
16. Intangible assets
(1) Information
In RMB
Items Land use right Software Patent right Total
I. Original price
1. Balance at period-beginning 48,258,239.00 22,336,546.33 11,825,200.00 82,419,985.33
2.Increase in the current period - 263,523.53 - 263,523.53
(1) Purchase - 263,523.53 - 263,523.53
3.Decreased amount of the period - - - -
- 62 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
4. Balance at period-end 48,258,239.00 22,600,069.86 11,825,200.00 82,683,508.86
II.Accumulated amortization
1. Balance at period-beginning 15,274,148.35 11,128,065.03 11,825,200.00 38,227,413.38
2. Increase in the current period 891,565.32 4,000,107.36 - 4,891,672.68
(1) Withdrawal 891,565.32 4,000,107.36 - 4,891,672.68
3.Decreased amount of the period - - - -
4. Balance at period-end 16,165,713.67 15,128,172.39 11,825,200.00 43,119,086.06
III. Impairment provision
1. Balance at period-beginning - - - -
2. Increase in the current period - - - -
3.Decreased amount of the period - - - -
4. Balance at period-end - - - -
4. Book value
1.Book value at period -end 32,092,525.33 7,471,897.47 - 39,564,422.80
2.Book value at period-beginning 32,984,090.65 11,208,481.30 - 44,192,571.95
As of December 31, 2023, the Group's intangible assets mortgaged by bank loans are detailed in Notes (V),21
"Assets with restricted ownership or use right".
17. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investee or matters that form
Balance at the end Balance at the end
goodwill Increase this year Decrease this year
of last year of this year
SAPO Photoelectric 9,614,758.55 - - 9,614,758.55
Shenzhen Beauty Century Garment Co.,
2,167,341.21 - - 2,167,341.21
Ltd.
Total 11,782,099.76 - - 11,782,099.76
(2) Goodwill impairment provision
In RMB
Name of the investee or matters that form
Balance at the end Balance at the end
goodwill Increase this year Decrease this year
of last year of this year
SAPO Photoelectric 9,614,758.55 - - 9,614,758.55
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 - - 2,167,341.21
Total 11,782,099.76 - - 11,782,099.76
18. Long-term deferred expenses
In RMB
Balance at the Increased amount Amortized Other reduction Balance at the
Items
end of last year this year amount this year amount end of this year
Decoration and facilities
4,470,957.79 1,218,440.63 2,160,430.42 25,307.06 3,503,660.94
renovation fee
19. Deferred income tax assets/Deferred income tax liabilities
(1) Uncompensated deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
- 63 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Credit loss provision 59,994,128.15 10,538,054.68 65,076,915.43 11,372,802.27
Asset impairment provision 132,512,745.52 19,876,911.83 206,115,717.20 30,917,357.58
Unrealized profit from internal transactions 2,145,963.47 321,894.52 2,235,077.97 335,261.70
Employee compensation payable 4,173,800.00 1,043,450.00 9,397,730.55 2,143,607.14
Deferred income 96,647,256.82 14,497,088.52 116,768,810.33 17,515,321.55
Deductible loss 127,769,387.40 19,165,408.11 90,052,078.73 13,397,964.96
Changes in fair value of investment in other
14,831,681.50 3,707,920.38 14,831,681.50 3,707,920.38
equity instruments
Lease liabilities 12,177,572.68 1,826,635.90 15,365,393.88 2,304,809.08
Total 450,252,535.54 70,977,363.94 519,843,405.59 81,695,044.66
According to the Group's profit forecast results for the future period, the Group believes that it is likely to obtain
sufficient taxable income in the future period to make use of the above deductible temporary differences and deductible
losses, so relevant deferred income tax assets are recognized.
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Deductible Deductible
Items Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
The difference between the initial recognition
cost of long-term equity investment and tax 62,083,693.36 15,520,923.34 62,083,693.36 15,520,923.34
basis
Changes in fair value of investment in other
138,805,043.74 34,701,260.94 160,494,427.01 40,123,606.76
equity instruments
Rent receivable 10,108,726.81 2,527,181.70 7,584,635.96 1,896,158.99
Use right assets 11,999,466.57 1,799,919.99 15,365,393.88 2,304,809.08
Total 222,996,930.48 54,549,285.97 245,528,150.21 59,845,498.17
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
End balance of Trade-off between Opening balance
Trade-off between
deferred income the deferred of deferred income
the deferred
Items tax assets or income tax assets tax assets or
income tax assets
liabilities after off- and liabilities at liabilities after off-
and liabilities
set period-begin set
Deferred income tax assets (10,371,998.52) 60,605,365.42 (11,871,230.37) 69,823,814.29
Deferred income tax assets (10,371,998.52) 44,177,287.45 (11,871,230.37) 47,974,267.80
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 14,740,965.97 5,742,636.02
Deductible loss 442,263,671.30 464,226,095.10
Total 457,004,637.27 469,968,731.12
(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 at the end of last year
2024 69,053,143.67 79,132,962.34
2025 - 16,680,938.23
2026 53,989,578.07 128,597,715.91
- 64 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
2027 10,067,397.50 12,155,889.69
2028 39,988,583.76 22,463,907.95
2029 129,732,249.98 129,766,788.98
2030 75,352,814.24 75,427,892.00
2031 - -
2032 - -
2033 64,079,904.08 -
Total 442,263,671.30 464,226,095.10
20 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Prepayment for
engineering and 3,757,334.44 - 3,757,334.44 16,792,930.20 - 16,792,930.20
equipment
Investment funds to be
25,760,086.27 - 25,760,086.27 25,760,086.27 - 25,760,086.27
liquidated
Total 29,517,420.71 - 29,517,420.71 42,553,016.47 - 42,553,016.47
- 65 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
21. Assets with restricted ownership or right of use
End of the year End of the previous year
Items Restricted
Book balance Book value Restricted type Restricted circumstances Book balance Book value Restricted circumstances
circumstances
Account Freezing and
Restricted right Account Freezing and Restricted right
Monetary funds 9,305,118.06 9,305,118.06 116,990,685.31 116,990,685.31 Time Deposit
of use Margin of use
Certificates
Restricted right The endorsement of the Restricted right The endorsement of the
Notes receivable 42,665,954.11 42,665,954.11 48,387,401.67 48,387,401.67
of use note is not terminated of use note is not terminated
Restricted right
Other receivables - - / / 6,559,327.26 6,559,327.26 Account Freezing
of use
Restricted right Restricted right
Fixed asset 572,261,261.14 454,185,881.22 Mortgage 572,261,261.14 470,366,658.55 Mortgage
of use of use
Restricted right Restricted right
Intangible asset 44,770,083.00 32,092,525.33 Mortgage 44,770,083.00 32,984,090.65 Mortgage
of use of use
Total 669,002,416.31 538,249,478.72 / / 788,968,758.38 675,288,163.44 / /
- 66 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
22. Short-term borrowings
In RMB
Items Balance in year-end Balance in year-begin
Credit loans 8,000,000.00 7,000,000.00
23.Notes payable
In RMB
Items Balance in year-end Balance in year-begin
Bank acceptance Bill 31,049,291.49 -
The Group has no notes payable due and unpaid at the end of the year.
24. Accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Payment for goods 386,767,637.00 304,916,368.65
Service charge 13,817,610.72 11,386,158.86
Loyalities 2,207,166.50 4,609,134.50
Subcontracting payment 4,584,423.60 3,970,214.14
Others 1,171,298.42 2,167,997.55
Total 408,548,136.24 327,049,873.70
On December 31, 2023, the Group had no significant accounts payable with an aging of more than one year.
25.Advance account
In RMB
Items Balance in year-end Balance in year-begin
Rent and other 1,450,096.30 1,393,344.99
On December 31, 2023, the Group had no significant accounts payable with an aging of more than one year.
26.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 1,436,943.34 4,274,109.40
On December 31, 2023, the Group had no significant contract liabilities with an aging of more than one year.
- 67 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
27.Payable Employee wage
(1) List of Payroll payable
In RMB
Balance in year- Increase in this Payable in this Balance in year-
Items
begin period period end
Short-term compensation 60,940,432.90 223,391,192.84 230,478,544.09 53,853,081.65
Post-employment benefits -
- 17,698,860.49 17,698,860.49 -
defined contribution plans
Dismissal benefits 226,012.00 8,460,265.33 6,102,196.89 2,584,080.44
Total 61,166,444.90 249,550,318.66 254,279,601.47 56,437,162.09
（2）Short-term remuneration
In RMB
Balance in year- Increase in this Decrease in this Balance in year-
Items
begin period period end
Wages, bonuses, allowances and subsidies 57,472,981.87 196,563,582.14 203,551,752.29 50,484,811.72
Employee welfare 29,185.44 10,196,697.74 10,225,883.18 -
Social insurance premiums - 3,800,816.39 3,800,816.39 -
Including：Medical insurance - 3,098,787.68 3,098,787.68 -
Maternity insurance - 296,157.78 296,157.78 -
Work injury insurance - 405,870.93 405,870.93 -
Public reserves for housing 202,391.00 8,005,658.59 8,208,049.59 -
Union funds and staff education fee 3,235,874.59 4,824,437.98 4,692,042.64 3,368,269.93
Total 60,940,432.90 223,391,192.84 230,478,544.09 53,853,081.65
（3）Defined contribution plans listed
In RMB
Balance in year- Increase in this Decrease in this Balance in year-
Items
begin period period end
Basic old-age insurance premiums - 14,207,148.80 14,207,148.80 -
Unemployment insurance - 3,194,871.82 3,194,871.82 -
Annuity payment - 296,839.87 296,839.87 -
Total - 17,698,860.49 17,698,860.49 -
The Group participates in pension insurance and unemployment insurance plans established by government
agencies according to regulations, and according to the plans, the Group pays fees to these plans according to the
prescribed standards. In addition to the above-mentioned monthly deposit fees, the Group will no longer assume further
payment obligations. The corresponding expenses are included in the current profits and losses or the related asset costs
when incurred.
This year, the Group shall pay RMB 14,207,148.80 and RMB 296,839.87(2022: RMB 13,593,639.21 and
RMB303,261.11) to the pension insurance and unemployment insurance plans respectively. As of December 31, 2023,
the Group has fully paid the amount of pension insurance and unemployment insurance plans payable during the
reporting period.
- 68 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
28.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
Enterprise Income tax 2,080,849.81 4,655,525.64
Individual Income tax 1,080,628.82 1,847,004.45
VAT 582,961.29 1,740,677.77
Other 596,455.22 654,104.65
Total 4,340,895.14 8,897,312.51
29.Other payable
(1) Other payables listed according to the payment nature
In RMB
Items Balance in year-end Balance in year-begin
Engineering equipment payment 67,176,881.34 83,337,092.31
Current payment 56,444,481.12 53,102,831.34
Deposit and security deposit 48,208,919.61 45,628,573.39
Others 12,698,062.48 15,276,958.33
Total 184,528,344.55 197,345,455.37
(2) On December 31, 2023, the Group had no significant other payable with an aging of more than one year.
30. Non-current liabilities due within 1 year
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Long-term loans due within one year(Note(V).32) 102,612,497.53 97,182,080.19
Lease liabilities due within one year(Note(V).、33) 5,490,255.46 7,001,358.03
Total 108,102,752.99 104,183,438.22
31.Other current liabilities
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Endorsed and unexpired acceptance bill 42,665,954.11 48,387,401.67
Return payable 37,244,449.90 44,558,340.11
To be rescheduled 172,073.21 -
Total 80,082,477.22 92,945,741.78
- 69 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
32. Long-term loans
In RMB
Balance at the end of this Balance at the end of last
Items Interest rate interval
year year
Guaranteed loan (note) 608,190,812.09 704,603,665.19 3.96-4.41%
Total 608,190,812.09 704,603,665.19
Less: Long-term loans due within one year 102,612,497.53 97,182,080.19
Less: Long-term loans due after one year 505,578,314.56 607,421,585.00
Note: SAPO Photoelectric, a subsidiary of the Company, mortgaged its real estate rights such as the factory
building, and the Company and Hangzhou Jinjiang Group Co., Ltd. provided 60% and 40% joint guarantee for the loan
respectively.
33. Lease liabilities
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Lease liabilities 12,177,572.68 15,630,030.74
Subtotal 12,177,572.68 15,630,030.74
Less: Lease liabilities due within one year 5,490,255.46 7,001,358.03
Lease liabilities becoming due after one year 6,687,317.22 8,628,672.71
The Group's lease liabilities are analysed by the maturity of the undiscounted remaining contractual obligations as
follows:
In RMB
Within 1 More than 5
1 to 3 months 3 to 12 months 1 to 5 years Total
month years
Balance at the end of
513,149.55 2,012,582.22 3,284,024.84 5,822,333.46 1,672,592.08 13,304,682.15
the year
Balance at the end of
1,075,350.63 2,330,382.48 4,884,203.14 6,111,983.10 2,819,512.65 17,221,432.00
the previous year
34. Deferred income
In RMB
Balance at the end Balance at the end Reason
Items Increase this year Decrease this year
of last year of this year
Received the
Government subsidies 117,814,796.10 4,278,925.00 24,607,734.21 97,485,986.89 government
subsidies
35.Stock capital
In RMB
Changed（+，-）
Year-beginning Capitaliza Balance in
Items Issuance of Bonus
balance tion of Other Subtotal year-end
new share shares
public
reserve
Total of capital shares 506,521,849.00 - - - - - 506,521,849.00
- 70 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
36. Capital reserves
In RMB
Year-beginning Increase in the current Decrease in the Year-end balance
Items
balance period current period
Share premium 1,826,482,608.54 - - 1,826,482,608.54
Other capital reserves 135,117,216.09 - - 135,117,216.09
Total 1,961,599,824.63 - - 1,961,599,824.63
37. Other comprehensive income
In RMB
Amount of current period
Less
：
Less ：
Prior
Amount
period
transfer
includ
red into
ed in
profit
other
and loss After-
compo tax
Amount in the After-tax
site
Year- current Less ： attribut
incurred incom attribute Year-end
Items beginning period Income e to
before e to the balance
balance that tax minorit
income transfe parent
recogni expenses y
tax r to company
zed into shareho
retaine
other lder
d
compre
incom
hensive
e in
income
the
in prior
curren
period
t
period
I. Other comprehensive income that
108,584,3 (21,689,3 (5,422,34 (16,267,0 92,317,30
cannot be reclassified into profit or - - -
44.77 83.27) 5.82) 37.45) 7.32
loss
1. Changes in fair value of
108,584,3 (21,689,3 (5,422,34 (16,267,0 92,317,30
investment in other equity - - -
44.77 83.27) 5.82) 37.45) 7.32
instruments
II. Other comprehensive income to 1,012,264 396,902.3 277,808.9 119,093 1,290,073
- - -
be reclassified into profit or loss .54 5 5 .40 .49
1. Changes in fair value of (178,640. 297,733.5 178,640.1 119,093
- - - -
receivables financing 10) 0 0 .40
2. Translation difference of foreign 1,190,904 1,290,073
99,168.85 - - - 99,168.85 -
currency financial statements .64 .49
Total of other comprehensive 109,596,6 (21,292,4 (5,422,34 (15,989,2 119,093 93,607,38
- -
income 09.31 80.92) 5.82) 28.50) .40 0.81
38. Special reserves
In RMB
Year-beginning Increase in the current Decrease in the Year-end balance
Items
balance period current period
Statutory surplus reserve 100,909,661.32 3,352,654.32 - 104,262,315.64
39. Retained profits
In RMB
- 71 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Items Amount of current period Amount of previous period
Undistributed profit at the end of last year before adjustment 170,636,610.95 125,317,336.31
Total undistributed profits adjusted at the beginning of the
- -
year
Adjusted undistributed profit at the beginning of the year 170,636,610.95 125,317,336.31
Add: Net profit attributable to shareholders of parent
79,268,250.45 73,309,182.94
company this year
Less: Withdrawal of statutory surplus reserve 3,352,654.32 2,663,815.85
Distribution of common stock dividends ( 30,391,310.94 25,326,092.45
Year end undistributed profit 216,160,896.14 170,636,610.95
Note: According to the resolution of the General Meeting of Shareholders on May 26, 2023, the Company distributed a
cash dividend of RMB 0.6 (including tax) for every 10 shares, totally RMB30,391,310.94 (including tax) based on the
share capital of 506,521,849 shares as of December 31, 2022.
40. Operating income and operating cost
(1) Operating income and operating cost
In RMB
Amount incurred this year Amount incurred last year
Items
Income Cost Income Cost
Main business 3,031,175,008.58 2,560,743,931.49 2,802,203,439.94 2,373,407,000.36
Other business 48,503,366.87 887,913.04 35,784,824.42 598,896.07
Total 3,079,678,375.45 2,561,631,844.53 2,837,988,264.36 2,374,005,896.43
(2) Main business classified by product
In RMB
Amount incurred this year Amount incurred last year
Product type
Main business income Main business cost Main business income Main business cost
Polarizer sales 2,885,625,542.77 2,499,416,729.45 2,693,787,636.62 2,317,793,097.44
Property leasing and
145,549,465.81 61,327,202.04 108,415,803.32 55,613,902.92
management
Total 3,031,175,008.58 2,560,743,931.49 2,802,203,439.94 2,373,407,000.36
(3) Main business classified by region
InRMB
Amount incurred this year Amount incurred last year
Main business region
Main business income Main business cost Main business income Main business cost
Domestic 2,914,588,072.35 2,464,223,583.43 2,686,847,406.83 2,278,271,215.01
Overseas 116,586,936.23 96,520,348.06 115,356,033.11 95,135,785.35
Total 3,031,175,008.58 2,560,743,931.49 2,802,203,439.94 2,373,407,000.36
(4) Description of performance obligations
The Group's goods sales are mainly the production and sales of polarizer and textile-related goods. For goods sold
to customers, the Group recognizes income when the control of the goods is transferred, that is, when the goods are
delivered to the designated place of the other party and signed by the other party. Since the delivery of goods to
customers represents the right to unconditionally receive the contract consideration, the maturity of the money only
depends on the passage of time, so the Group recognizes a receivable when the goods are delivered to professional
customers. When the customer prepays the payment, the Group recognizes the transaction amount received as a
contractual liability until the goods are delivered to the customer.
The Group provides property and leasing services to customers, which is a performance obligation to be fulfilled within
a certain period of time. The Group recognizes income in the process of providing property and leasing services. For
property services, the Group recognizes revenue in the course of providing property services, and for leasing services,
the Group apportions the total rental amount on a straight-line basis throughout the lease term without deducting the
rent-free period and recognize rental income.
(5) Description of allocation to remaining performance obligations
- 72 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
On December 31, 2023, the amount of contractual liabilities corresponding to the performance obligations that the
Group has signed but has not yet fulfilled or has not yet fully fulfilled is RMB 1,436,943.34, and the income will be
recognized when the customer obtains the control of the goods.
41. Taxes and surcharges
In RMB
Amount incurred this Amount incurred last
Items
year year
Property tax 6,184,638.83 5,213,976.28
Urban maintenance and construction tax 555,230.22 366,211.93
Surcharge for education 400,403.17 237,396.39
Other taxes 2,153,350.91 2,089,542.31
Total 9,293,623.13 7,907,126.91
42. Sales expenses
In RMB
Amount incurred this Amount incurred last
Items
year year
Employee compensation 17,089,203.74 18,560,229.96
Sales service charge 10,639,607.95 10,661,049.94
Business entertainment 972,733.63 2,214,489.62
Others 5,494,125.29 4,526,759.83
Total 34,195,670.61 35,962,529.35
43. Management cost
In RMB
Amount incurred this Amount incurred last
Items
year year
Employee compensation 90,991,755.13 83,952,597.31
Depreciation cost 11,118,057.18 12,258,281.68
Professional service fee 8,841,449.74 7,197,534.84
Amortization of intangible assets 4,891,672.68 5,082,893.36
Property leasing and utilities 4,086,627.39 5,252,212.15
Business entertainment 1,439,231.97 1,557,382.87
Others 13,002,616.44 13,088,038.08
Total 134,371,410.53 128,388,940.29
44. R&D expenses
In RMB
Amount incurred this Amount incurred last
Items
year year
Employee compensation 14,827,264.16 16,349,423.75
Material consumption 85,216,243.35 58,840,560.48
Depreciation cost 3,389,328.35 3,518,432.27
Others 1,220,205.06 1,811,739.04
Total 104,653,040.92 80,520,155.54
Note: The Group has no R&D project development expenditure that meets the conditions for capitalization.
- 73 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
45. Financial expenses
In RMB
Items Amount incurred this year Amount incurred last year
Interest expense (note) 27,339,804.17 31,131,112.38
Less: capitalized interest expense - -
Less: interest income 12,947,471.64 8,327,248.75
Exchange difference 4,332,702.63 (14,569,863.53)
Handling fees and others 5,674,466.00 4,709,606.47
Total 24,399,501.16 12,943,606.57
Note: The interest expense on lease liabilities in 2023 is RMB431,636.06.
46. Other income
In RMB
Amount incurred in the Amount incurred in the
Sources of other income
current period previous period
Transfer-in of deferred income 22,107,734.21 16,401,222.05
Industry development support funds (Note 1) 11,049,910.96 6,384,733.03
Enterprise development support funds (Note 2) 553,455.00 2,062,888.38
Tax subsidy 16,881,612.68 1,262,440.33
Others 147,651.06 238,927.10
Total 50,740,363.91 26,350,210.89
Note 1: The industry development support funds mainly include the subsidy for the incentive project for industrial
enterprises to expand production capacity, the first batch of key new material industry support projects of the
Shenzhen Municipal Bureau of Industry and Information Technology in 2023, the special fund project for economic
development in Pingshan District, and the subsidy for the emerging industry support plan (new materials) of the
Bureau of Industry and Information Technology.
Note 2: The enterprise development support funds mainly include the R&D subsidy for enterprises of the Shenzhen
Science and Technology Innovation Commission, and the subsidy fund for the improvement of atmospheric
environment quality of the Shenzhen Municipal Bureau of Ecology and Environment.
47. Investment income
In RMB
Items Amount incurred this year Amount incurred last year
Long-term equity investment income calculated by equity method (6,898,983.89) 1,307,639.15
Investment income of transactional financial assets during the holding
15,519,035.33 15,457,585.05
period
Dividend income from investment in other equity instruments during the
2,208,584.12 2,618,127.67
holding period
Total 10,828,635.56 19,383,351.87
48. Income from changes in fair value
In RMB
Sources of income from changes in fair value Amount incurred this year Amount incurred last year
Transactional financial assets 2,151,780.82 -
- 74 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
49. Credit impairment gain (loss)
In RMB
Amount incurred this Amount incurred last
Items
year year
Impairment loss of notes receivable - 365,055.74
Gain (loss) from impairment of accounts receivable 4,133,136.51 (11,584,551.67)
Gain (loss) from impairment of other receivables 402,638.63 6,600,942.84
Total 4,535,775.14 (4,618,553.09)
50. Asset impairment gain (loss)
In RMB
Amount incurred this Amount incurred last
Items
year year
Inventory depreciation loss (126,089,709.42) (183,706,022.57)
Impairment loss of fixed assets - (18,867,443.27)
Total (126,089,709.42) (202,573,465.84)
51. Asset disposal income
In RMB
Amount incurred this Amount incurred last
Items
year year
Gains & losses on foreign investment in fixed assets 1.72 31,264.60
52. Non-Operation income
In RMB
Items Amount of current Amount of previous Recorded in the amount
period period of the non-recurring
gains and losses
Non-current asset Disposition loss 768,398.45 6,334,444.97 768,398.45
Compensation expenses 252,000.00 - 252,000.00
Insurance expenses 193,275.48 7,652,845.40 193,275.48
Other 236,205.33 1,005,792.20 236,205.33
Total 1,449,879.26 14,993,082.57 1,449,879.26
53.Non-current expenses
In RMB
Amount of current Amount of previous The amount of non-
Items
period period operating gains & lossed
Non-current asset Disposition loss 115,541.99 26,020.82 115,541.99
Compensation expenses 7,926,787.08 7,248,331.74 7,926,787.08
Fine expenses 42,319.72 778.86 42,319.72
Other 121,152.72 201,926.05 121,152.72
Total 8,205,801.51 7,477,057.47 8,205,801.51
- 75 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
54.Income tax expenses
(1)Income tax expenses
In RMB
Amount of current period Amount of previous
Items
period
Current income tax expense 8,563,917.13 4,043,680.11
Deferred income tax expense 10,843,814.34 (71,486,803.63)
Total 19,407,731.47 (67,443,123.52)
(2)Reconciliation of account profit and income tax expenses
In RMB
Amount of current Amount of previous
Items
period period
Total profits 146,544,210.05 44,348,842.80
Current income tax expense accounted by tax and relevant
36,636,052.51 11,087,210.70
regulations
Influence of different tax rates applied by some subsidiaries (14,393,929.80) (2,715,451.54)
The impact of non-taxable income (1,126,262.45) (2,483,588.11)
Non-deductible costs, expenses and losses 2,293,874.74 771,675.89
Tax impact by the unrecognized deductible losses and deductible temporary
(25,587.79) (66,704,686.87)
differences in previous years
The tax impact of the deductible loss and the deductible temporary difference
10,154,045.89 2,931,982.20
is not recognized
The tax rate adjustment leads to a change in the balance of deferred income
(21,128.84) -
tax assets / liabilities at the beginning of the period
ax impact of research and development fee plus deduction (13,995,916.51) (10,330,265.79)
Other (113,416.28) -
Income tax expenses 19,407,731.47 (67,443,123.52)
55. Supplementary information to cash flow statement
(1) Cash related to operating activities
Other cash received relevant to operating activities
In RMB
Amount of current Amount of previous
Items
period period
Letter of Credit Deposit 37,450,879.69 167,866,753.31
Interest income 18,578,870.77 8,067,195.21
Government Subsidy 16,029,942.02 33,703,713.84
Current account 15,217,631.42 8,658,637.60
Total 87,277,323.90 218,296,299.96
Other cash paid related to operating activities
In RMB
Amount of current Amount of previous
Items
period period
Payment of credit deposit 34,639,361.27 25,106,708.19
Cash 71,894,532.84 87,642,432.49
Current account and other 10,910,080.05 9,199,351.73
Total 117,443,974.16 121,948,492.41
- 76 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
(2) Cash related to investment activities
Cash received related to other investment activities
In RMB
Amount of current Amount of previous
Items
period period
Structured deposits 950,000,000.00 430,000,000.00
Fixed deposit 245,000,000.00 753,000,000.00
Currency fund and others 259,000,000.00 133,000,000.00
Total 1,454,000,000.00 1,316,000,000.00
Payments of cash in connection with significant investment activities
In RMB
Amount of current Amount of previous
Items
period period
Structured deposits 1,400,000,000.00 480,000,000.00
Currency fund 290,500,000.00 436,064,713.28
Fixed deposit 150,000,000.00 224,368,658.21
Total 1,840,500,000.00 1,140,433,371.49
Cash received in connection with significant investment activities
In RMB
In RMB
Amount of current Amount of previous
Items
period period
Structured deposits, financial products, 1,454,000,000.00 1,316,000,000.00
Cash paid related to other investment activities
In RMB
Amount of current period Amount of previous
Items
period
Structured deposits, financial products, 1,840,500,000.00 1,140,433,371.49
(3)Cash related to financing activities
Cash paid related with financing activities
In RMB
Amount of current period Amount of previous
Items
period
Lease payment 8,776,024.71 9,144,572.43
Changes in various liabilities arising from fund-raising activities
In RMB
Balance at the Increase in the year Decrease in the year
Balance at the
Item end of the Changes in Non-cash Non-cash
Changes in cash end of the year
previous year cash changes changes
Short-term borrowing 7,000,000.00 8,000,000.00 - 7,000,000.00 - 8,000,000.00
Long-term borrowing 704,603,665.19 - 26,908,168.11 123,321,021.21 - 608,190,812.09
Lease liabilities 15,630,030.74 - 5,323,566.65 8,776,024.71 - 12,177,572.68
Total 727,233,695.93 8,000,000.00 32,231,734.76 139,097,045.92 - 628,368,384.77
Note: Long-term borrowings and lease liabilities include those that are due within one year.
(4) The Group does not present cash flow on a net basis
- 77 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
(5) The Group does not have any major activities or financial impacts that do not involve cash receipts and expenditures
for the current period but affect the financial position of the enterprise or may affect the cash flow of the enterprise in the
future.
56. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Amount of current Amount of previous
Items
period period
I. Adjusting net profit to cash flow from operating activities
Net profit 127,136,478.58 111,791,966.32
Add: asset impairment provision 126,089,709.42 202,573,465.84
Credit loss preparation (4,535,775.14) 4,618,553.09
Depreciation of fixed assets and investment property 235,884,938.02 256,562,100.50
Depreciation of right-of-use assets 8,257,857.90 9,007,666.58
Amortization of intangible assets 4,891,672.68 5,082,893.36
Amortization of Long-term deferred expenses 2,160,430.42 1,819,286.52
Loss on disposal of fixed assets, intangible assets and other long-term
(1.72) (31,264.60)
deferred assets
Fixed assets scrap loss 113,290.32 26,020.82
Loss on fair value changes (2,151,780.82) -
Financial cost 26,883,671.86 29,183,633.15
Loss on investment (10,828,635.56) (19,383,351.87)
Decrease of deferred income tax assets 9,218,448.87 (66,115,217.51)
Increased of deferred income tax liabilities 1,625,365.47 (5,371,586.12)
Decrease of inventories (304,034,232.92) 1,248,186.40
Decease of operating receivables (126,515,773.08) (81,468,525.61)
Increased of operating Payable 90,571,075.50 40,694,723.73
Net cash flows arising from operating activities 184,766,739.80 490,238,550.60
II. Significant investment and financing activities that without cash flows:
End balance of cash equivalents 461,420,457.33 874,474,834.46
Less: Beginning balance of cash equivalents 874,474,834.46 302,408,433.72
Net increase of cash and cash equivalent (413,054,377.13) 572,066,400.74
(2) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 461,420,457.33 874,474,834.46
Including：Cash at hand 1,710.40 3,980.56
Demand bank deposit 461,418,746.93 874,470,853.90
Demand other monetary funds - -
II.Cash equivalents - -
III. Balance of cash and cash equivalents at the period end 461,420,457.33 874,474,834.46
(3) During the reporting period, the Group does not have any presentation for those with restricted scope of use but still
presented as cash and cash equivalents.
- 78 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
(4) Monetary funds that are not cash or cash equivalents
In RMB
Amount incurred in the Amount incurred in the
Item Reason
year previous year
Cannot be used for
Bill margin 5,905,118.06 -
payment at any time
Cannot be used for
Current interest and 7-day call deposit interest 1,548,872.61 324,448.42
payment at any time
The principal and interest of certificates of Cannot be used for
- 115,719,927.09
deposit maturing more than three months payment at any time
Other 3,400,000.00 1,270,758.22 Account freezing
Total 10,853,990.67 117,315,133.73 /
57. 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 66,703,011.39
Including：USD 8,829,274.51 7.0827 62,535,102.56
Yen 68,513,734.89 0.0502 3,440,280.17
HKD 802,927.17 0.9062 727,628.66
Account receivable 28,289,108.51
Including：USD 3,958,508.14 7.0827 28,036,925.61
HKD 278,280.00 0.9062 252,182.90
Other receivable 498,404.86
Including：USD 70,369.33 7.0827 498,404.86
Account payable 319,354,807.51
Including：USD 4,335,058.95 7.0827 30,703,922.03
Yen 5,747,765,566.00 0.0502 288,612,552.37
HKD 42,300.00 0.9062 38,333.11
Other payable 6,587,005.74
Including：USD 860,536.00 7.0827 6,094,918.33
Yen 9,800,000.20 0.0502 492,087.41
58.Leasing
(1) As a lessee
The Group has leased a number of assets, including houses and buildings, with lease terms ranging from 1 to 10
years. The above-mentioned right-of-use assets cannot be used for the purpose of loan mortgage, guarantee, etc.
The Group does not have variable lease payments that are not included in the measurement of lease liabilities.
Lease expenses for simplified short-term leases: Simplified short-term lease expenses included in profit or loss for
the current period amounted to RMB558,957.38 (previous year: RMB653,461.86).
The total lease-related cash outflow for the year is RMB9,334,982.09 (previous year: RMB9,798,034.29).
(2) As a lessor
Operating lease as a lessor
In RMB
- 79 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Thereinto: Income related to
variable lease payments that
Item Lease income
are not included in lease
receipts
Houses and buildings 97,558,143.88 -
The Group's operating leases with it as lessor are related to premises and buildings with lease terms ranging from 1
to 15 years.
The income related to operating leases for the year is RMB97,558,143.88 (previous year: RMB67,804,574.63), of
which the income related to variable lease payments that are not included in lease receipts is RMB0 (previous year:
RMB0).
In RMB
Undiscounted lease receipts
Item Amount incurred in the
Amount incurred in the year
previous year
1st year after the balance sheet date 74,399,477.80 65,239,408.94
2nd year after the balance sheet date 54,475,653.29 49,608,649.57
3rd year after the balance sheet date 44,564,404.34 40,071,243.84
4th year after the balance sheet date 29,708,115.33 33,797,303.21
5th year after the balance sheet date 9,346,233.32 22,595,837.83
Subsequent years 7,327,310.40 5,527,129.80
The total amount of undiscounted lease receipts 219,821,194.48 216,839,573.19
(VI) R&D expenditures
（1） Presented by nature of expenses
In RMB
Amount incurred in the
Items Amount incurred in the year
previous year
Employee remuneration 14,827,264.16 16,349,423.75
Material consumption 85,216,243.35 58,840,560.48
Depreciation 3,389,328.35 3,518,432.27
Others 1,220,205.06 1,811,739.04
Total 104,653,040.92 80,520,155.54
Thereinto: Expensed R&D expenditures 104,653,040.92 80,520,155.54
Capitalized R&D expenditures - -
(2) The Group has no R&D project development expenditure eligible for capitalization.
(3) The Group has no significant outsourced R&D projects under development.
(VII) Change in the scope of consolidation
Shenzhen Shengjinlian Technology Co., Ltd. was deregistered on December 13, 2023, and other than that, the scope
of the Group's consolidation has not changed.
Note: Shenzhen Shengjinlian Technology Co., Ltd. was cancelled on December 13, 2023.
- 80 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
(VIII). Equity in other subjects
1. Equity in subsidiaries
(1) Composition of the enterprise group
Shareholding Acqui
Main
Registered ratio % sition
Subsidiary name place of Place of registration Business nature
address Indire metho
business Direct
ct d
Establ
Shenzhen Lishi Industry 100.0
Shenzhen RMB 2,360,000.00 Shenzhen Property leasing - ishme
Development Co., Ltd 0
nt
Establ
100.0
Shenzhen Huaqiang Hotel Shenzhen RMB 10,005,300.00 Shenzhen Property leasing - ishme
0
nt
Establ
Shenzhen Shenfang Real Property 100.0
Shenzhen RMB 1,600,400.00 Shenzhen - ishme
Estate Management Co., Ltd. management 0
nt
Establ
Shenzhen Beauty Century Textile production 100.0
Shenzhen RMB 13,000,000.00 Shenzhen - ishme
Garment Co., Ltd. and sales 0
nt
Shenzhen Shenfang Sungang Establ
Property 100.0
Real Estate Management Co., Shenzhen RMB 1,000,000.00 Shenzhen - ishme
management 0
Ltd. nt
RMB Polarizer Acqui
SAPO Photoelectric Shenzhen Shenzhen 60.00 -
583,333,333.00 production and sale sition
Shengtou (Hongkong) Establ
HKD 100.0
Co.,Ltd. Hongkong Hongkong Polarizer sales - ishme
10,000.00 0
nt
Polarizer Establ
Shenzhen Shengjinlian 100.0
Shenzhen RMB 1,000,000.00 Shenzhen production and sale, - ishme
Technology Co., Ltd. 0
etc. nt
Note: Shenzhen Shengjinlian Technology Co., Ltd. was cancelled on December 13, 2023.
(2) Important non-wholly-owned subsidiaries
In RMB
Profit and loss
Dividends declared to Balance of minority
Minority shareholding attributable to minority
Subsidiary name minority shareholders equity at the end of the
ratio shareholders in the
in the current period period
current period
Shenzhen SAPO Photoelectric
40.00% 47,868,228.13 - 1,229,765,091.74
Co., Ltd.
(3) Major financial information of important non-wholly-owned subsidiaries
In RMB
SAPO Photoelectric
Items Year-end balance/Amount Balance of the end of last
incurred this year year / amount of last year
Current assets 2,224,998,868.32 1,936,541,263.47
Non-current assets 2,215,651,449.74 2,419,432,602.01
- 81 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
SAPO Photoelectric
Items Year-end balance/Amount Balance of the end of last
incurred this year year / amount of last year
Total assets 4,440,650,318.06 4,355,973,865.48
Current liabilities 762,685,435.65 674,071,107.48
Non-current liabilities 608,912,888.60 732,819,068.02
Total liabilities 1,371,598,324.25 1,406,890,175.50
Operating income 2,944,147,907.27 2,735,055,209.89
Net profit 119,670,570.33 96,206,958.45
Total comprehensive income 119,968,303.83 95,909,224.95
Cash flow from operating activities 168,163,478.05 484,437,283.64
2 Equity in joint venture arrangements or joint ventures
Summary financial information of unimportant joint ventures and associated enterprises
In RMB
Year-end balance/Amount Balance of the end of last
Items
incurred this year year / amount of last year
Joint ventures Associated enterprise
Total book value of investment 122,370,494.08 129,506,271.76
Total of the following items calculated by shareholding ratio
-Net profit(Loss) (7,135,777.68) 1,292,045.22
-Other comprehensive income - -
-Total comprehensive income (7,135,777.68) 1,292,045.22
Associated enterprise
Total book value of investment 5,311,526.62 4,975,563.98
Total of the following items calculated by shareholding ratio
-Net profit 236,793.79 15,593.93
-Other comprehensive income 99,168.85 151,869.82
-Total comprehensive income 335,962.64 167,463.75
(IX) Government subsidies
(1) As of December 31, 2023, the Group does not have any government subsidies recognized on the basis of receivables.
(2) Liabilities involving government subsidies
In RMB
The amount of
The amount of The amount of Asset-
The number at the non-operating The number
new subsidy other income Other changes related/
Liability item beginning of the income at the end of
added in the included in the during the year Earnings
year included in the the year
current year current year related
current year
16,107,734.2 (2,500,000.00 97,485,986.8 Asset-
Deferred income 111,814,796.10 4,278,925.00 -
1 ) 9 related
Income -
Deferred income 6,000,000.00 - - 6,000,000.00 - -
related
22,107,734.2 (2,500,000.00 97,485,986.8
Total 117,814,796.10 4,278,925.00 - /
1 ) 9
(3) Government subsidies included in profit or loss for the current period
In RMB
Amount incurred in the Amount incurred in the
Subsidy Items
year previous year
Other income 33,711,100.17 24,848,843.46
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Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
X. Risks related to financial instruments
The Group's main financial instruments include monetary funds, transactional financial assets, notes receivable,
accounts receivable, accounts receivable financing, other receivables, other equity instruments investment, short-term
loans, accounts payable, other payables, other current liabilities, long-term loans and lease liabilities, etc. At the end of
this year, the financial instruments held by the Group are as follows. See Note (V) for details. The risks associated with
these financial instruments and the risk management policies adopted by the Group to reduce these risks are as follows.
The management of the Group manages and monitors these risk exposures to ensure that the above risks are controlled
within a limited range.
In RMB
Amount incurred in the
Items Amount incurred in the year
previous year
Financial assets
Measured at fair value, with its changes included in current profits and
losses
Transactional financial assets 821,946,114.68 319,605,448.44
Measured at fair value, with its changes included in other
comprehensive income
Receivable financing 22,839,459.13 54,413,796.91
Investment in other equity instruments 145,988,900.00 167,678,283.27
Measured in amortized cost
Monetary funds 472,274,448.00 991,789,968.19
Note receivable 50,963,943.01 74,619,100.26
Accounts receivable 820,134,833.95 636,583,469.93
Other receivables 3,219,287.77 10,288,124.02
Financial liabilities
Measured in amortized cost
Short-term loan 8,000,000.00 7,000,000.00
Notes payable 31,049,291.49 -
Accounts payable 408,548,136.24 327,049,873.70
Other payables 184,528,344.55 197,345,455.37
Other current liabilities 42,665,954.11 92,945,741.78
Long-term loans 608,190,812.09 704,603,665.19
The Group uses sensitivity analysis technology to analyze the possible impact of reasonable and possible changes
in risk variables on current profits and losses and shareholders' equity. Because any risk variable rarely changes in
isolation, and the correlation between variables will have a great impact on the final amount of a risk variable change,
the following contents are carried out under the assumption that each variable change is independent.
1. Risk management objectives, policies and procedures, and changes occurred during the year
The Group's goal in risk management is to strike a proper balance between risks and benefits, reduce the
negative impact of risks on the Group's operating performance to the lowest level, and maximize the interests of
shareholders and other equity investors. Based on this risk management goal, the basic strategy of the Group's risk
management is to identify and analyze all kinds of risks faced by the Group, establish an appropriate risk tolerance
bottom line and conduct risk management, and timely and reliably supervise all kinds of risks to control the risks
within a limited range.
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreign exchange
risks are mainly related to US dollars, Japanese yen, Hong Kong dollars and euros. Except for some import purchases
and export sales of the Group's companies located in Chinese mainland which are mainly settled in US dollars,
Japanese yen, Hong Kong dollars and Euros, other major business activities of the Group are settled in RMB.
- 83 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
As of 31 December 2023, the Group's assets and liabilities were all RMB balances, except for the monetary items
in foreign currencies mentioned in Notes (V), (57). The foreign exchange risks arising from the assets and liabilities
with foreign currency balances (converted into RMB) described in the table below may have an impact on the Group's
operating results.
In RMB
Balance at the end of this year
Assets Liabilities
Items
USD 91,070,433.03 36,798,840.36
Yen 3,440,280.17 289,104,639.78
HKD 979,811.56 38,333.11
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk. At
present, the Group has not taken any measures to avoid foreign exchange risks.
Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedging of
overseas operations are highly effective.
On the basis of the above assumptions, with other variables unchanged, the pre-tax impact of possible reasonable
exchange rate changes on current profits and losses and shareholders' equity is as follows:
In RMB
This year Last Year
Impact on Impact on
Changes in exchange
Items Impact on profits shareholders' Impact on profits shareholders'
rate
equity equity
All foreign Appreciation of RMB
(11,522,564.42) (11,522,564.42) (10,266,787.69) (10,266,787.69)
currencies by 5%
All foreign Depreciation of RMB
11,522,564.42 11,522,564.42 10,266,787.69 10,266,787.69
currencies by 5%
1.1.2. Interest rate risk - risk of cash flow change
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainly related
to bank loans with floating interest rate. The Group continues to pay close attention to the impact of interest rate changes
on the Group's interest rate risk. The Group's policy is to maintain floating interest rates on these loans, and there is no
interest rate swap arrangement at present.
Sensitivity analysis of interest rate risk
With other variables unchanged, the pre-tax impact of possible reasonable interest rate changes on current profits
and losses and shareholders' equity is as follows:
In RMB
This year Last Year
Impact on Impact on
Interest rate
Items Impact on profits shareholders' Impact on profits shareholders'
change
equity equity
Floating-rate loan Increase by 1% (6,154,214.55) (6,154,214.55) (7,108,088.43) (7,108,088.43)
Floating-rate loan Decrease by 1% 6,154,214.55 6,154,214.55 7,108,088.43 7,108,088.43
1.2. Credit risk
On December 31, 2023, the largest credit risk exposure that may cause the Group's financial losses mainly came
from the loss of the Group's financial assets caused by the failure of the other party to the contract, including monetary
funds, transactional financial assets, notes receivable, accounts receivable, receivables financing and other receivables.
On the balance sheet date, the book value of the Group's financial assets has represented its maximum credit risk
exposure.
In order to reduce the credit risk, the Group arranges special personnel to determine the credit limit, conduct credit
approval and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue
debts. In addition, the Group reviews the recovery of financial assets on each balance sheet date to ensure that sufficient
credit loss provision has been made for relevant financial assets. Therefore, the management of the Group believes that
the credit risk assumed by the Group has been greatly reduced.
- 84 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
The Group's monetary funds are deposited in banks with high credit ratings, so the monetary funds only have low
credit risk.
On December 31, 2023, the balance of accounts receivable of the Group to the top five customers was
RMB510,920,546.66, accounting for 59.16% of the balance of accounts receivable of the Group. In addition, the Group
has no other significant credit risk exposure concentrated in a single financial asset or financial asset portfolio with
similar characteristics.
1.3 Liquidity risk
When managing liquidity risk, the Group maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Group's business needs and reduce the impact of cash flow fluctuations. The
management of the Group monitors the use of bank loans and ensures compliance with the loan agreement.
On December 31, 2023, the Group's unused comprehensive bank credit line was RMB 111,896.00.
The financial liabilities held by the Group are analyzed according to the maturity of the undiscounted remaining
contractual obligations as follows:
In RMB
Item Within 1 year 1-5 years Over 5 years Total
Short-term loan 8,202,908.33 - - 8,202,908.33
Notes payable 31,049,291.49 - - 31,049,291.49
Accounts payable 408,548,136.24 - - 408,548,136.24
Other payables 184,528,344.55 - - 184,528,344.55
Other current liabilities 42,665,954.11 - - 42,665,954.11
Long-term loans 121,051,052.09 543,134,195.76 - 664,185,247.85
Lease liabilities 5,809,756.61 5,822,333.46 1,672,592.08 13,304,682.15
2. Transfer of financial assets
2.1Classification of transfer methods
In RMB
The amount of Derecognitio
The nature of the The basis for determining the situation of
Transfer method financial assets n
transferred financial assets derecognition
transferred information
After the accounts receivable are factored,
the factoring institution has no right to
Derecognitio recover from the company, and it can be
Factoring Accounts receivable 634,780,309.98
n determined that the main risks and rewards
of the accounts receivable have been
transferred, so the recognition is terminated.
Since the credit risk and deferred payment
risk of banker's acceptance bill in
financingsreceivable are very small, and the
Outstanding banker's
interest rate risk related to the bill has been
acceptance bill that is Derecognitio
Endorsement transfer 59,520,699.22 transferred to the bank, it can be
classified as financings n
determinedthat the main risks and rewards
receivable
on the ownership of the note have been
transferred, so the recognition is
derecognized.
Unexpired banker's Non-
Endorsement transfer acceptance bill classified 42,665,954.11 derecognitio Not eligible for derecognition
as bills receivable n
Total / 736,966,963.31
2.2 Financial assets that have been derecognized as a result of transfer
In RMB
Method for the The amount of the Gains or losses
Item financial assets financial asset related to
transferred derecognized derecognition
Endorsement
Financings receivable 59,520,699.22 -
transfer
Accounts receivable Factoring 634,780,309.98 -
- 85 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Total / 694,301,009.20 -
2.3 Transferred financial assets that continue to be involved
In RMB
Amount of assets Amount of liability
Asset transfer resulting from arising from
Item
method continued continued
involvement involvement
Transfer by
Notes receivable - 42,665,954.11
endorsement
Total / - 42,665,954.11
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
Year-end fair value
Fair value Fair value Fair value
Items
measurement of measurement of measurement of Total
Level 1 Level 2 Level 3
Measured at fair value continuously
(I) Transactional financial assets - 821,946,114.68 - 821,946,114.68
(II) Receivable financing - - 22,839,459.13 22,839,459.13
(III) Investment in other equity instruments - - 145,988,900.00 145,988,900.00
Total assets continuously measured at fair value - 821,946,114.68 168,828,359.13 990,774,473.81
2. For Level 2 items measured at fair value continuously and non-continuously, the valuation techniques and
qualitative and quantitative information of important parameters are adopted
In RMB
Fair value at the end of
Items this year Valuation technique Input value
Discounted cash flow
Transactional financial assets 821,946,114.68 Expected yield
technique
3. For Level 3 items measured at fair value continuously and non-continuously, the valuation techniques and
qualitative and quantitative information of important parameters are adopted
In RMB
Fair value at the end of
Items this year Valuation technique Input value
Discounted cash flow
Receivable financing 22,839,459.13 Discount rate
technique
Comparison of listed P/B ratio of similar listed
companies companies
Investment in other equity instruments 145,988,900.00 Comparable income
Market price
method
Statement adjustment
Book value
method
- 86 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
4. Fair value of financial assets and financial liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include monetary funds, notes receivable, accounts
receivable, other receivables, short-term loans, accounts payable, other payables, long-term loans and lease liabilities.
The management of the Group believes that the book values of financial assets and financial liabilities measured in
amortized cost in the financial statements are close to their fair values.
XII. Related parties and related party transactions
1. Information about the parent company of the Enterprise.
Shareholding ratio Percentage of
Registered of the parent voting rights of the
Name of parent company Place of registration Business nature capital company to the parent company to
(RMB '0,000) Company % the Company %
Equity
18/F, Investment
investment,
Shenzhen Investment Holdings Co., Building, Shennan
real estate 3,235,900.00 46.21 46.21
Ltd Road, Futian
development,
District, Shenzhen
etc
Description of the parent company of the Enterprise
The parent company of the Company is a wholly state-owned company approved and authorized by the Shenzhen
Municipal Government, and exercises the investor function for the state-owned enterprises within the authorized scope
according to law.
During the reporting period, the changes in the registered capital of the parent company are as follows:
In RMB 10,000
Balance at the end of this
Balance at the end of last year Increase this year Decrease this year
year
2,850,900.00 385,000.00 - 3,235,900.00
2. Information on subsidiaries of the Enterprise
Please refer to Notes (VII), 1 for details of the subsidiaries of the Enterprise.
3. Information on joint ventures and associated enterprises of the Enterprise
See Notes (VII), 2 for details of the important joint ventures or associated enterprises of the Enterprise.
4. Information on other related parties
Names of other related parties Relationship between other related parties and the Enterprise
The Company's shareholding company and the chairman of
Shenzhen Xinfang Knitting Co., Ltd.
the company are the employees of the Group
The Company's shareholding company and the chairman of
Shenzhen Dailishi Underwear Co., Ltd.
the company are the employees of the Group
Minority shareholder of SAPO Photoelectric , a subsidiary of
Hengmei Optoelectronics Co., Ltd the Company, one of whose directors is a supervisor of SAPO
Photoelectric
A subsidiary of Shenzhen Investment Holdings Limited, the
Shenzhen Shentou Property Development Co.Ltd
parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited, the
Shenzhen Investment Building Hotel Co., Ltd.
parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited, the
Shenzhen Investment Building Property Management Co., Ltd.
parent company of the Company
Shenzhen SGE Longyan Energy Technology Co., Ltd. A subsidiary of Shenzhen Investment Holdings Limited, the
- 87 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
parent company of the Company
5. Related party transactions
(1) Procurement of goods/acceptance of services
Content of related party Amount incurred this Amount incurred last
Related party
transaction year year
Optical film materials
Hengmei Optoelectronics Co., Ltd 4,540,435.30 -
and processing
Shenzhen SGE Longyan Energy Technology Co.,
Purchasing electricity 1,075,289.19 -
Ltd.
Shenzhen Guanhua Printing & Dyeing Co., Ltd. Interest expenses 16,237.39 6,601.33
Total 5,631,961.88 6,601.33
(2) Sale of goods
In RMB
Content of related party Amount incurred this Amount incurred last
Related party
transaction year year
Hengmei Optoelectronics Co., Ltd Polarizer 4,744,631.12 -
Shenzhen Shentou Property Development Co.Ltd Textile 65,634.51 -
Shenzhen Investment Building Hotel Co., Ltd. Textile 163,729.20 -
Shenzhen Investment Building Property
Textile 35,522.12 -
Management Co., Ltd.
Shenzhen Investment Holdings Co., Ltd Textile 15,371.68 -
Shenzhen Guanhua Printing & Dyeing Co., Ltd. Textile - 8,849.56
Total 5,024,888.63 8,849.56
(3) Lending of related party funds
In RMB
Related party Borrowing amount Start date Due date Description
Lending
The annual lending
Shenzhen Guanhua Printing & Dyeing Co., Ltd. 3,806,454.17 2019.07.30 2024.07.31
rate is 0.30%
(4) Rewards for the key management personnel
In RMB
Amount of current Amount of previous
Rewards for the key management personnel Items
period period
Rewards for the key management personnel 8,557,258.00 11,966,067.00
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Balance of Balance of Bad debt
Book Book Book Provision
Other Account Shenzhen Dailishi 1,100,000.00 58,850.00 1,100,000.00 58,850.00
- 88 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
receivable Underwear Co., Ltd.
Other Account Shenzhen Guanhua Printing
41,325.00 - - -
receivable & Dyeing Co., Ltd.
Total 1,141,325.00 58,850.00 1,100,000.00 58,850.00
（2）Payables
In RMB
Amount at year
Name Related party Amount at year end
beginning
Other payable Yehui International Co.,Ltd. 1,124,656.60 1,124,656.60
Other payable Shenzhen Changlianfa Printing & dyeing Co., Ltd. 2,023,699.95 2,023,699.95
Other payable Shenzhen Guanhua Printing & dyeing Co., Ltd. 3,811,272.20 3,806,454.17
Other payable Shenzhen Xinfang Knitting Co., Ltd. 244,789.85 244,789.85
Other payable Shenzhen Investment Holdings Co., Ltd 485,189.00 643,987.04
Total 7,689,607.60 7,843,587.61
XIII. Commitments and contingencies
1. Important commitments
(1) Capital commitment
In RMB
Amount at the end of this Amount at the end of last
Items
year year
Contracted but not recognized in the financial statements
Commitment to purchase and build long-term assets 2,413,823.52 3,761,094.00
2. Contingencies
As of December 31, 2023, the Group has no pending litigation, external guarantees and other contingencies that shall be
disclosed.
XIV. Matters after the balance sheet date
1. Profit distribution after the balance sheet date
On March 26, 2024, the Board of Directors of the Company convened and adopted the profit distribution plan for
2023. Based on the total number of shares entitled to profit distribution of 506,521,849 shares on December 31, 2023,
the Company distributed RMB0.65 in cash (including tax) for every 10 shares, with a total cash dividend of RMB
32,923,920.19 元. The profit distribution plan has yet to be approved by the General Meeting of Shareholders of the
Company.
In RMB
Items Amount
Profits or dividends to be distributed 32,923,920.19
Profits or dividends declared after deliberation and approval
- 89 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
XV. Other important matters
1. Segment information
(1) Determination basis and accounting policy of reporting segment
According to the Group's internal organizational structure, management requirements and internal reporting system,
the Group's business operations are divided into three business segments, and the management of the Group regularly
evaluates the operating results of these segments to determine the allocation of resources and evaluate the performance.
On the basis of operating segments, the Group has identified the following three reporting segments: polarizer business,
property leasing business and textile business.
The information reported by each segment is disclosed according to the accounting policies and measurement
standards adopted by each segment when reporting to the management, and these measurement bases are consistent with
those used when preparing financial statements
(2) Financial information of reporting segment
In RMB
This year or the end of this
Polarizer Property leasing Offset Total
year
Operating income:
External transaction income 2,885,625,542.77 194,052,832.68 - 3,079,678,375.45
Inter-segment transaction
- 5,228,270.79 (5,228,270.79) -
income
Total operating income of
2,885,625,542.77 199,281,103.47 (5,228,270.79) 3,079,678,375.45
segment
Operating expenses (note) 2,740,034,558.58 133,409,869.35 (4,899,337.05) 2,868,545,090.88
Operating profit 127,113,090.17 36,505,509.79 (10,318,467.66) 153,300,132.30
Net profit 111,017,342.91 26,450,970.51 (10,331,834.84) 127,136,478.58
Total assets of segment 4,439,757,297.25 3,223,473,385.00 (2,013,408,318.81) 5,649,822,363.44
Total liabilities of segment 1,363,903,983.44 219,428,207.11 (45,427,185.07) 1,537,905,005.48
Note: This item includes operating costs, taxes and surcharges, management costs, R&D expenses, sales expenses and
financial expenses.
2. Other important transactions and matters that have an impact on investors' decisions
(1) Major asset restructuring
On December 30, 2022, the "Proposal on the Purchase of Assets by Issuing Shares and Paying Cash and Raising
Matching Funds Namely the Related Party Transaction Plan" was deliberated and approved in the 19th meeting of the
8th session of the board of directors of the Company, in which the Company intends to purchase 100% of the shares of
Hengmei Optoelectronics Co., Ltd. held by 17 companies including Chimei Materials and Haosheng (Danyang) by
issuing shares and paying cash. The cash consideration for this transaction is intended to be paid by the Company
through self-raised funds such as M&A loans and raising matching funds, and the Company intends to raise matching
funds from no more than 35 qualified specific investors through non-public issuance of shares. The total amount of
matching funds raised shall not exceed 100% of the transaction price of the assets to be purchased by issuing shares,
and the number of shares issued shall not exceed 30% of the total share capital of the listed company after the
completion of the purchase of assets by issuing shares.
On November 17, 2023, the "Proposal on Shenzhen Textile (Holdings) Co., Ltd.’s Issuance of Shares and Payment of
Cash to Purchase Assets and Raise Matching Funds Namely the Related Party Transaction Plan (Revised Draft) and its
Summary" wasdeliberated and approved in the 25th meeting of the 8th session of the Board of Directors of the
Company, the original counterparty Hangzhou Rencheng Trading Partnership (Limited Partnership) will no longer
participate in this transaction, and add the new counterparty Kunshan Guochuang Investment Group Co., Ltd., and the
underlying assets will still be the 100% equity of the target company. Meanwhile, the transaction plan will be adjusted
- 90 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
in accordance with the relevant system rules for the full implementation of the stock issuance registration system
issued by the China Securities Regulatory Commission.
The transaction will not result in a change of control of the Company, and the actual controller of the Company before
and after the transaction is the State-owned Assets Supervision and Administration Commission of the Shenzhen
Municipal People's Government. As of the date of approval of the financial report, the transaction still needs to obtain
relevant approvals, filing and other procedures, the audit, evaluation, due diligence and other work involved in the
transaction are still in progress, and after the completion of the relevant work, the Company will once more convene
ameeting of the board of directors to consider the relevant matters of the transaction.
(2) Real estate that has not yet been disposed of by Shenzhen Xieli Automobile Enterprise Co., Ltd. (hereinafter referred
to as "Shenzhen Xieli").
Shenzhen Xieli, a sino-foreign joint venture invested and established by the Company and Hong Kong Xieli
Maintenance Company (hereinafter referred to as "Hong Kong Xieli"), was cancelled by the Shenzhen Municipal
Administration for Market Regulation in March 2020, but there are still three properties under the name of Shenzhen
Xieli that need to be disposed of through consultation between the shareholders of both parties. In July 2020, the
Company filed an administrative act in the People's Court of Yantian District, Shenzhen, Guangdong Province to revoke
the cancellation of Shenzhen Xieli approved by the Shenzhen Municipal Administration for Market Regulation.
In December 2022, the People's Court of Yantian District, Shenzhen, Guangdong Province, rendered a judgment of first
instance for retrial, revoking the administrative act of approving the cancellation of Shenzhen Xieli. In January 2023, the
third party of the original trial, Hong Kong Xie-li, appealed to the Intermediate People's Court of Shenzhen, Guangdong
Province, and later ruled that the appeal should be withdrawn by Hong Kong Xie-Li due to Hong KongXie-Li's failure to
pay the case acceptance fee in advancement schedule, and retrial of first instance judgment took effect on March 22,
2023.
XVI. Notes on main items of parent company's financial statements
1. Accounts receivable
(1) Disclosure by age
In RMB
Aging Amount at the end of this year Amount at the end of last year
Within 1 year 10,190,859.62 13,871,107.36
1-2 years - 2,485,076.00
2-3 years 2,485,076.00 -
Total 12,675,935.62 16,356,183.36
(2) Classified disclosure by credit loss provision accrual method
In RMB
Balance at the end of this year
Book balance Bad debt provision
Category
Accrual proportion Book value
Amount Proportion (%) Amount
(%)
Account receivable that withdrawal
- - - - -
bad debt provision by single item
Account receivable withdrawal bad debt
12,675,935.62 100.00 4,311.97 0.03 12,671,623.65
provision by portfolio
Total 12,675,935.62 100.00 4,311.97 / 12,671,623.65
In RMB
Amount at year-begin
Book balance Bad debt provision
Category Book value
Amount Proportion Amount Accrual proportion
- 91 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
(%) (%)
Account receivable that withdrawal bad
- - - - -
debt provision by single item
Account receivable withdrawal bad debt
16,356,183.36 100.00 713,159.25 4.36 15,643,024.11
provision by portfolio
Total 16,356,183.36 100.00 713,159.25 / 15,643,024.11
As of December 31, 2023, the credit risk and bad debt provision for Portfolio 1 accounts receivable are as
follows:
In RMB
Balance at the end of the year
Category )Expected average Provision for bad
Book balance Book value
loss ratio (%) debts
Within 1 year 0.04 10,190,859.62 4,311.97 10,186,547.65
2-3 years - 2,485,076.00 - 2,485,076.00
Total / 12,675,935.62 4,311.97 12,671,623.65
As ofDecember 31, 2023, the credit risk and bad debt provision of Portfolio 2 accounts receivableare as follows:
In RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit Expected credit losses for the
Bad Debt Reserves Total
losses over the loss over life (no entire duration
next 12 months credit impairment) (credit impairment
occurred)
Balance as at January 1, 2023 713,159.25 - - 713,159.25
Balance as at January 1, 2023 in current - - - -
——Transfer to stage II - - - -
——Transfer to stage III - - - -
-- Reversal to the II stage - - - -
-- Reversal to the I stage - - - -
Provision in Current Year - - - -
Reversal in Current Year (708,847.28) - - (708,847.28)
Conversion in Current Year - - - -
Write off in Current Year - - - -
Other change - - - -
Balance as at 31 Dec. 2023 4,311.97 - - 4,311.97
(3) Provision for bad debts
In RMB
Balance at Amount of change this year Balance at the
Category the beginning Recovery Write-off or Other end of this
Accrual
of this year or reversal cancellation changes year
Provision for bad debts 713,159.25 - 708,847.28 - - 4,311.97
Total 713,159.25 - 708,847.28 - - 4,311.97
There is no bad debt provision recovered or reversed with amounts significant during the year.
（4）There are no accounts receivable actually written off during the year.
（5）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
Total accounts receivable of the top five balances on December 31, 12,652,340.62 99.81 3,073.24
- 92 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
2023
2.Other receivable
(1) Disclosure by aging
In RMB
Balance at the end of this Balance at the end of last
Aging
year year
Within 1 year 1,683,810.52 3,408,892.46
1-2 years 2,213,073.28 10,707,995.02
2-3 years 10,100,800.01 -
Over 3 years 15,279,395.10 15,279,395.10
Total 29,277,078.91 29,396,282.58
Less: Bad debt provision 15,263,525.96 15,263,525.96
book value 14,013,552.95 14,132,756.62
(2) Disclosure by payment nature
In RMB
Book balance at the end Book balance at the end
Payment nature
of this year of last year
Deposit and security deposit 10,000.00 10,000.00
External unit transactions 15,349,339.97 15,349,339.97
Related party transactions within the consolidation scope 12,553,241.09 12,980,241.09
Others 1,364,497.85 1,056,701.52
Total 29,277,078.91 29,396,282.58
(3) Accrual of credit loss provision
As ofDecember 31, 2023, the provision for bad debts is made based on the general model of expected credit losses.
In RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit Expected credit losses for the
Bad Debt Reserves Total
losses over the loss over life (no entire duration
next 12 months credit impairment) (credit impairment
occurred)
Balance as at January 1, 2023 59,301.12 3,018.92 15,201,205.92 15,263,525.96
Balance as at January 1, 2023 in current
——Transfer to stage II (442.69) 442.69 - -
——Transfer to stage III - - - -
-- Reversal to the II stage - - - -
-- Reversal to the I stage - - - -
Provision in Current Year - 5,529.83 - 5,529.83
Reversal in Current Year (5,529.83) - - (5,529.83)
Conversion in Current Year - - - -
Write off in Current Year - - - -
Other change - - - -
Balance as at 31 Dec. 2023 53,328.60 8,991.44 15,201,205.92 15,263,525.96
As ofDecember 31, 2023, Accrual of credit loss provision
In RMB
Year-end amount
Stage
Expected average Book balance Loss provision Book value
- 93 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
loss rate (%)
Other receivables for which credit loss provision
is made according to the combination of credit 52.13 29,277,078.91 15,263,525.96 14,013,552.95
risk characteristics
As of December 31, 2023, the credit risk and bad debt provision for other receivables are as follows:
Year-end amount
账龄 Expected average
Book balance Loss provision Book value
loss rate (%)
Within 1 year 3.17 1,683,810.52 53,328.60 1,630,481.92
1-2 years 0.04 2,213,073.28 902.24 2,212,171.04
2-3 years 0.08 10,100,800.01 8,089.20 10,092,710.81
Over 3 years 99.49 15,279,395.10 15,201,205.92 78,189.18
Total 29,277,078.91 15,263,525.96 14,013,552.95
(4) Changes in bad debt provisions
In RMB
Balance at the Change amount for the year
Balance at the
Category beginning of the Recovery or Transfer or Other
Accrual end of the year
year reversal write off changes
Bad debt provisions 15,263,525.96 5,529.83 (5,529.83) - - 15,263,525.96
(5) There are no other accounts receivable actually written off during the year.
(6) Top five companies with year-end balance of other receivables collected by the defaulting party
In RMB
Proportion of total
Year-end
Year-end year-end balance of
balance of
balance of other receivables
Unit name Payment nature Aging credit loss
other (%)
provision
receivables
Current
payment
Total other receivables of the receivable Within 1 year, 1-2
14,266,189.9
top five balances on December between 27,860,581.06 years, 2-3 years, 95.16
7
31, 2023 companies and Over 3 years
internal current
payment
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 1,976,433,419. 1,959,850,790. 1,974,532,127. 1,957,949,498.
16,582,629.30 16,582,629.30
subsidiaries 39 09 39 09
Investments in joint
122,370,494.08 - 122,370,494.08 129,506,271.76 - 129,506,271.76
ventures
Investments in
5,311,526.62 - 5,311,526.62 4,975,563.98 - 4,975,563.98
associates company
2,104,115,440. 2,087,532,810. 2,109,013,963. 2,092,431,333.
Total 16,582,629.30 16,582,629.30
09 79 13 83
- 94 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance of
Name Opening balance Add investment Decreased investment Closing balance impairment
impairment provision
provision
SAPO Photoelectric 1,924,663,070.03 - - - 1,924,663,070.03 14,415,288.09
Shenzhen Lisi Industrial Development
8,073,388.25 - - - 8,073,388.25 -
Co., Ltd.
Shenzhen Beauty Century Garment Co.,
18,765,507.55 1,901,292.00 - - 20,666,799.55 2,167,341.21
Ltd.
Shenzhen Huaqiang Hotel 15,489,351.08 - - - 15,489,351.08 -
Shenzhen Shenfang Real Estate
1,713,186.55 - - - 1,713,186.55 -
Management Co., Ltd.
Shenzhen Shenfang Sungang Real Estate
5,827,623.93 - - - 5,827,623.93 -
Management Co., Ltd.
Total 1,974,532,127.39 1,901,292.00 - - 1,976,433,419.39 16,582,629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Equity Closing
Adjustment
method Declaration balance of
Opening of other Other Withdrawn Chosing
Name Add Decreased affirmative of cash impairme
balance comprehen equity impairment Other balance
investment investment profit and dividends nt
sive changes provision
loss on or profit provision
income
investments
I. Joint ventures
Shenzhen Guanhua
129,506,271.7 (7,135,777.6 122,370,494.0
Printing & Dyeing Co., - - - - - - - -
6 8) 8
Ltd.
129,506,271.7 (7,135,777.6 122,370,494.0
Subtotal - - - - - - - -
6 8) 8
II. Associated enterprises
Shenzhen Changlianfa
Printing and dyeing 3,105,796.55 - - 252,320.54 - - - - - 3,358,117.09 -
Company
Yehui International Co.,
1,869,767.43 - - (15,526.75) 99,168.85 - - - - 1,953,409.53 -
Ltd.
- 95 -
Shenzhen Textile(Holdings) Co., Ltd.
Financial Statements and Auditor's Report
For the year ended December 31,2023
Subtotal 4,975,563.98 - - 236,793.79 99,168.85 - - - - 5,311,526.62 -
134,481,835.7 (6,898,983.8 127,682,020.7
Total - - 99,168.85 - - - - -
4 9) 0
- 96 -
深圳市纺织(集团)股份有限公司
财务报表附注
2023 年 12 月 31 日止年度
4.Business income and Business cost
(1）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 Business 77,822,508.75 9,822,306.53 56,046,883.88 9,544,956.96
(2) Main business income and main business cost classified by product
In RMB
Amount incurred this year Amount incurred last year
Product
Main business income Main business cost Main business income Main business cost
Property leasing 77,822,508.75 9,822,306.53 56,046,883.88 9,544,956.96
(3) Main business income and main business cost classified by area
In RMB
Amount incurred this year Amount incurred last year
Area
Main business income Main business cost Main business income Main business cost
Domestic 77,822,508.75 9,822,306.53 56,046,883.88 9,544,956.96
5.Investment income
In RMB
Items Amount of current Amount of previous
period period
Income from long-term equity investment measured by adopting the equity method (6,898,983.89) 1,307,639.15
Income from long-term equity investment measured by adopting the cost method 9,989,533.92 -
Investment income of trading financial assets during the holding period 14,816,230.07 15,748,625.37
Dividend income earned during investment holdings in other equity instruments 1,393,735.85 1,599,735.85
Tota 19,300,515.95 18,656,000.37
- 97 -
深圳市纺织(集团)股份有限公司
补充资料
2023 年 12 月 31 日止年度
1. Particulars about current non-recurring gains and loss
In accordance with the provisions of the No. 1Explanatory Announcement on Information Disclosure of Companies
Offering Securities to the Public-Non-Recurring Profit and Loss (Revised in 2023) (hereinafter referred to as the " No.
1Explanatory Announcement") issued by the China Securities Regulatory Commission, the Group's non-recurring profit
and loss for 2023 is as follows:
In RMB
Items Amount
Non-current asset disposal gain/loss(including the write-off part for which assets impairment
provision is made)
1.72
Government subsidy recognized in current gain and loss(excluding those closely related to
the Company’s business and granted under the state’s policies)
19,927,836.02
Losses/gains from changes of fair values occurred in holding trading financial assets and
trading financial liabilities, and investment income obtaining from the disposal of trading
2,151,780.82
financial assets, trading financial liability and financial assets available-for-sale, excluded
effective hedging business relevant with normal operations of the Company
Reversal of the account receivable depreciation reserves subject to separate impairment test 15,031,480.15
Other non-business income and expenditures other than the above (6,755,922.25)
Total non-recurring gains and losses 30,355,176.46
Less :Influenced amount of income tax 3,478,333.83
Net non-recurring gains and losses 26,876,842.63
Influenced amount of minor shareholders’ equity (after tax) 9,937,259.91
Non-recurring gains or losses attributable to the common shareholders of the Company 16,939,582.72
Note: According to No. 1Explanatory Announcement, the impact on the Group's net non-recurring profit and loss in
2022 is RMB13,006,395.30, and the impact on the non-recurring profit or loss attributable to ordinary shareholders of
the Company is RMB7,803,837.18.
2. Return on net asset and earnings per share
This statement of return on net assets and earnings per share is prepared by the Group in accordance with the Rules for
Information Disclosure of Companies Issuing Securities to the Public No. 9- Calculation and Disclosure of Return on
Equity and Earnings per Share (revised in 2010) issued by China Securities Regulatory Commission.
In RMB
Earnings per share
Weighted average
Profit of report period Basic earnings per Diluted earnings per
returns equity(%)
share share
Net profit attributable to the Common stock shareholders
2.77 0.16 0.16
of Company.
Net profit attributable to the Common stock shareholders
2.17 0.12 0.12
of Company after deducting of non-recurring gain/loss.
