Stock code: 000045,200045 Stock Abbreviation: Shen Textile A, Shen Textile B Announcement No. :2021-59
Shenzhen Textile (Holdings) Co., Ltd.
The Third Quarterly Report 2021
The members of the Board and the Company acknowledge being responsible for the truthfulness, accuracy, andcompleteness of the announcement. Not any false record, misleading statement or significant omission carried inthis announcement.
Important content reminder:
1.The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Companyguarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and wewill accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
2. Principal of the Company, Person in Charge of Accounting Works and Person in Charge of Accounting Organ(Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurateand complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes √No
4. This Report has been prepared in both Chinese and English, in case any discrepancy, the Chinese version shallprevail.
I. Main financial data(I) Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| This period | Increase/decrease in the period compared with the same period of the previous year | Year-begin to period-end | Increase/decrease from year-begin to period-end compared with the same period of the previous year | |
| Operating income（Yuan） | 570,752,050.04 | -7.44% | 1,672,288,457.42 | 13.53% |
| Net profit attributable to the shareholders of the listed company（Yuan） | 4,921,591.39 | -80.10% | 81,524,665.78 | 220.38% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | 815,872.77 | -96.07% | 62,630,401.66 | 358.40% |
| Cash flow generated by business operation, net（Yuan） | —— | —— | -67,619,943.80 | -35.64% |
| Basic earning per share(Yuan/Share) | 0.0097 | -80.08% | 0.1608 | 221.60% |
| Diluted gains per share(Yuan/Share) | 0.0097 | -80.08% | 0.1608 | 221.60% |
| Weighted average return on equity（%） | 0.17% | -81.11% | 2.91% | 1.98% |
| End of this period | End of last period | Increase/decrease at the period-end compared with the end of the previous year | ||
| Gross assets（Yuan） | 5,449,740,850.61 | 4,969,547,552.23 | 9.66% | |
| Net assets attributable to the shareholders of the listed company（Yuan） | 2,827,318,581.92 | 2,766,234,174.39 | 2.21% | |
（II)Items and amount of non-current gains and losses
√ Applicable □ Not applicable
In RMB
| Items | This period | Amount from year-begin to period -end | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -2,000.00 | -2,055.96 | |
| Governmental Subsidy accounted as current gain/loss, except for those subsidies at with amount or quantity fixed by the national government and closely related to the Company’s business operation. | 6,834,233.47 | 15,598,802.48 | Other benefits of government subsidies that are confirmed related to the main business. |
| Net amount of non-operating income and expense except the aforesaid items | -124,649.13 | 19,967,824.33 | It is mainly for carrying forward unpaid payables and insurance claims income. |
| Less :Influenced amount of income tax | 135,280.09 | 4,496,099.20 | |
| Influenced amount of minor shareholders’ equity (after tax) | 2,466,585.63 | 12,174,207.53 | |
| Total | 4,105,718.62 | 18,894,264.12 | -- |
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit(gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q &A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined asrecurring gain/loss(III) Particulars about changes in items of main accounting data and financial index and explanations ofreasons
√ Applicable □Not applicable
In the first third quarters of 2021, the Company realized the net profit attributable to shareholders of thelisted company of RMB 81.5247 million , an increase of 220.38% over the same period last year. The mainreasons were: first, the market for polarizers continued to improve in this year, the Company further optimized theorder structure, and the average gross profit margin steadily increased; second, in the same period last year, theCompany responded to the new coronavirus epidemic and supported companies to overcome difficulties, and the
Company actively responded to the call of the Shenzhen Municipal Party Committee and the State-owned AssetsSupervision and Administration Commission for some tenants’ rents in February and March of 2020 to be reducedor exempted, however the rental income for the current period increased significantly YOY.In the third quarter of 2021, the Company realized the net profit attributable to shareholders of the listedcompany of RMB 4,921,600 , a decrease of 80.10% from the same period last year. It’s mainly due to theCompany's ultra-large-size TV polarizer project (line 7) was still in a ramping period after mass production in Julythis year, coupled with the depreciation and amortization of fixed assets, resulting in high unit manufacturingcosts; Meanwhile, the Company increased the R&D investment, resulting in a certain impact on the Company'sthird quarter performance. With the advancement of the ramp-up of Line 7 and the release of production capacity,it will boost the Company's operating performance.
| Items | Ending balance (RMB 10,000) | Operaing balance(RMB 10,000) | Changes ratio | Reasons of changes |
| Monetary funds | 17,165.78 | 27,908.72 | -38.49% | Mainly due to the investment in Line 7 project. |
| Notes receivable | 934.00 | 1,681.00 | -44.44% | Mainly due to the decrease in acceptance of bills payment by customers for the sales of polarizer's during the reporting period. |
| Prepayments | 5,709.00 | 1,690.00 | 237.81% | Mainly due to the increase in prepayment for materials during the reporting period. |
| Inventories | 68,870.00 | 48,085.00 | 43.23% | Mainly due to the increased purchase of raw materials for stocking. |
| Construction in process | 2,555.00 | 130,175.00 | -98.04% | Mainly due to the "fixed assets" turned by the Line 7 project as it reached the expected usable state |
| Fixed assets | 249,442.00 | 79,018.00 | 215.68% | Mainly due to the "fixed assets" turned by the Line 7 project as it reached the expected usable state |
| Long-germ expenses to be amortized | 504.00 | 288.00 | 75.00% | Mainly due to the amortization of newly added boiler heat transfer oil, pure water level 1 reverse osmosis, RTO pipeline maintenance and other items in the current period. |
| Other current assets | 9,576.00 | 14,331.00 | -33.18% | Mainly due to the certified input tax to be deducted and therefore transferred to the tax payable during the reporting period. |
| Long-term loans | 66,030.00 | 34,310.00 | 92.45% | Mainly due to the increase in loans for Line 7 project during the reporting period |
| Shares in stock | 0.00 | 753.00 | -100.00% | Mainly due to the repurchase of the restricted stocks. |
| Retained profit | 15,324.00 | 8,691.00 | 76.32% | Mainly due to earning a profit during the reporting period. |
| Items | Amount at the period（RMB 10,000) | Amount at the same period of last year(RMB 10,000) | Changes ratio | Reasons of changes |
| R & D Cost | 7,285.00 | 4,057.00 | 79.57% | Mainly due to the increase in research and development expenditures in the current period. |
| Financial expenses | -168.00 | 270.00 | -162.22% | Mainly due to the sharp decline in the yen exchange rate during the reporting period and the substantial increase in exchange gains. |
| Credit impairment loss | -319.00 | -927.00 | -65.59% | Mainly due to the receivable accounts recovered in the current period and the reversal of bad debt provisions. |
| Operating profit | 10,414.00 | 3,076.00 | 238.56% | Mainly due to the profitability of the polarizer business during the reporting period. |
| Non-operating income | 2,054.00 | 4.00 | 51250.00% | Insurance claims received in the current period, while none in the same period last year. |
| Non-operating expense | 57.00 | 12.00 | 375.00% | Scrapped fixed assets increased YOY in the current period. |
| Total profit | 12,410.00 | 3,068.00 | 304.50% | Mainly due to the profitability of the polarizer business during the reporting period. |
| Net profit | 8,152.00 | 2,545.00 | 220.31% | Mainly due to the profitability of the polarizer business during the reporting period. |
| Net cash flow generated by operating activities | -6,761.99 | -4,985.11 | 35.64% | Mainly due to the increase in the purchase of polarizer materials in the current period, which led to an increase in the payment of customs deposits. |
| Net cash flow generated by investment activities | -31,611.19 | -15,672.56 | 101.70% | Mainly due to the increase of the investment of Line 7 and in purchases of currency funds and wealth management products during the reporting period. |
II. Shareholders Information(I) Total number of common shareholders and preference shareholders with voting rights recovered andtop ten common shareholders
In shares
| Total number of common shareholders at the period-end | 25,999 | Total preference shareholders with the voting power recovered at the end of the reporting period(if any) | 0 | |||||
| Shares held by the top 10 shareholders | ||||||||
| Shareholder name | Properties of shareholder | Share proportion % | Quantity | Amount of tradable shares with Conditional held | Pledging or freezing | |||
| Status of the shares | Quantity | |||||||
| Shenzhen Investment Holdings Co., Ltd. | State-owned legal person | 46.21% | 234,069,436 | |||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | State-owned legal person | 3.18% | 16,129,032 | |||||
| Sun Huiming | Domestic Nature person | 1.09% | 5,529,653 | |||||
| Deng Yan | Domestic Nature person | 0.78% | 3,953,800 | |||||
| Su Weipeng | Domestic Nature person | 0.56% | 2,823,066 | Pledge | 2,800,000 | |||
| Qi Jianhong | Domestic Nature person | 0.43% | 2,199,800 | |||||
| Li Zengmao | Domestic Nature person | 0.41% | 2,078,697 | |||||
| Shen Zhenxing | Domestic Nature person | 0.39% | 1,963,300 | |||||
| Wang Zhongjing | Domestic Nature person | 0.35% | 1,779,000 | |||||
| Hou Xiulan | Domestic Nature person | 0.34% | 1,717,991 | |||||
| Shareholding of top 10 shareholders of unrestricted shares | ||||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | ||||||
| Share type | Quantity | |||||||
| Shenzhen Investment Holdings Co., Ltd. | 234,069,436 | RMB Common shares | 234,069,436 | |||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | 16,129,032 | RMB Common shares | 16,129,032 | |||||
| Sun Huiming | 5,529,653 | Foreign shares placed in domestic exchange | 5,529,653 | |||||
| Deng Yan | 3,953,800 | RMB Common shares | 3,953,800 | |||||
| Su Weipeng | 2,823,066 | RMB Common shares | 2,823,066 | |||||
| Qi Jianhong | 2,199,800 | RMB Common shares | 2,199,800 |
| Li Zengmao | 2,078,697 | RMB Common shares | 2,078,697 |
| Shen Zhenxing | 1,963,300 | RMB Common shares | 1,963,300 |
| Wang Zhongjing | 1,779,000 | RMB Common shares | 1,779,000 |
| Hou Xiulan | 1,717,991 | RMB Common shares | 1,717,991 |
| Related or acting-in-concert parties among shareholders above | Among the top 10 common shareholders, Shenzhen Investment Holdings Co., Ltd. and Shenzhen Shenchao Technology Investment Co., Ltd. do not constitute a concerted party relationship. In addition, the company does not know whether there is an associated relationship among the top 10 ordinary shareholders, and between the top 10 ordinary shareholders and the top 10 shareholders, or whether they are persons taking concerted action defined in Regulations on Disclosure of Information about Shareholding of Shareholders of Listed Companies. | ||
| Participation of top 10 unconditional common share shareholders in securities margin trading (if any) | The Company Shareholder Hou Xiulan holds 1,717,991 shares of the Company through stock account with credit transaction; | ||
(II) Total shareholders with preferred stock held and shares held by top ten shareholders with preferredstock held
□ Applicable √ Not applicable
III. Other significant events
√ Applicable □ Not applicable
(I) Progress of polarizer industrialization project for ultra-large TV (Line 7)During the reporting period, the company strengthened the staffing and resource guarantee to overcome theadverse effects caused by the epidemic situation. The Line 7 project was officially put into production in July. Asof the disclosure date of this report, the Line 7 project is in a ramp-up period.
On March 16, 2021, all the funds raised from the special account for raising funds of Line 7 project have been
used up according to regulations, and the company has canceled the special account for raising funds. For details,please refer to Announcement No.2021-30 of cninfo (http://www.cninfo.com.cn).
As of September 30, 2021, the accumulated signed contract amount of Line 7 project was RMB 2,091.2036million, and the actual payment was RMB 1,992.8241 million (with raised funds of RMB 409.9535 million, andits own funds and government funds of RMB 1,582.8706 million).
(II) Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary SAPO Photoelectric signed the ChangxingJunying Equity Investment Partnership (Limited Partnership) Agreement with the fund manager HuizhiInvestment Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners, andco-sponsored the establishment of an industrial fund, focusing on the optical film industry chain related projectsrelated to the company's main business, with a fund size of RMB 50 million . SAPO Photoelectric, as one of thelimited partners of the industrial fund, subscribed for a capital contribution of RMB 28.5 million.For detailsJuchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial andcommercial registration and completed the private equity investment fund registration on February 8, 2018. Fordetails Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).
As of September 30, 2021, Changxing Junying had accumulated 3 investment projects with a total investmentof RMB 42 million.
| No | Name | Investment | Fund contribution |
（RMB 10,000）
| 1 | Shenzhen Kaichuang Shijia Technology Co., Ltd. | Optical Film | 1,400 |
| 2 | Shenzhen Shenfuyu Electronic Technology Co., Ltd. | Optical Film | 1,300 |
| 3 | Shenzhen Hengbaoshun Technology Development Co., Ltd. | Optical Film | 1,500 |
(III) Matters on liquidation and cancellation of Shenzhen Textile Import & Export Co., Ltd.On July 13, 2021, the company held the fifth meeting of the eighth board of directors to review and approve theProposal on Liquidation and Cancellation of Shenzhen Textile Import & Export Co., Ltd., and agreed on theLiquidation Report of Shenzhen Textile Import & Export Co., Ltd.. completed by the liquidation group, andliquidated and distributed its assets in accordance with legal procedures, and completed formalities such asindustrial and commercial cancellation. The liquidation and cancellation of Shenzhen Textile Import & Export Co.,Ltd. (hereinafter referred to as "Shenzhen Textile Import & Export") will change the scope of the company'sconsolidated financial statements, facilitate the disposal of inefficient assets, reduce management costs, and willnot affect the company's production and operation. The impact of the cancellation of Shenzhen Textile Import &Export in this liquidation on the current profits and losses is estimated to be RMB 7.64 million, and the actualamount is subject to the results confirmed by the annual audit of the audit institution. For details, please refer tothe Announcement on Liquidation and Cancellation of Shenzhen Textile Import & Export. (No.2021-45) issued byJuchao Information Network (http://www.cninfo.com.cn).As of the disclosure date of this report, the Company has received the "Enterprise Cancellation Notice" issuedby the Shenzhen Municipal Market Supervision and Administration Bureau, and the cancellation procedures ofShenzhen Textile Import & Export have been completed.
(IV) Matters on the listing and leasing of some properties in Block C of Shenzhen Textile BuildingOn July 13, 2021, the company held the fifth meeting of the eighth board of directors to review and approve theProposal on Listing and Leasing Some Properties in Block C of Shenzhen Textile Building, and agreed that thecompany will publicly list and lease 6,100 square meters of properties of the 8F-10F and 1F lobby of Block C ofShenzhen Textile Building through Shenzhen United Property and Share Rights Co., Ltd., with a lease term of 10years (including a rent-free period of 6 months), and the rental price is not lower than 85 yuan/㎡/month(including property management fee). The rent will increase by 5% every three years from the date of contractconclusion, and the final transaction price will be determined according to the listing result. The listing andleasing of some properties in Block C of Shenzhen Textile Building has shifted the market risk from self-operatedhotels to brand hotel operators through overall external leasing, which is conducive to improving the overalloperational efficiency of the company's assets, reducing operational risks, bringing stable rental income to thecompany and helping to realize the preservation and appreciation of state-owned assets. For details, please refer tothe Announcement of Resolutions of the Fifth Meeting of the Eighth Board of Directors of the company(No.2021-44) on Juchao Information Network (http://www.cninfo.com.cn).
As of the disclosure date of this report, the Company has signed a lease contract with the lessee based on thelisting result, and the leasing of the properties has been completed.
(V) The disposal of assets of the joint venture company Xieli Automobile Co., Ltd.
Shenzhen Xieli Automobile Enterprise Co., Ltd. (hereinafter referred to as "Shenzhen Xieli") is a Sino-foreignjoint venture invested and established by the company and Hong Kong Xieli Maintenance Company in 1981, witha registered capital of RMB 3.12 million, and the company holds 50% of the equity. The company's operatingperiod ended in 2008, and its business license was revoked in 2014. The company's main asset is real estate. Up tonow, the company has received RMB 25.76 million. This matter has no impact on the company’s profit and loss.According to the professional opinions and suggestions of the law firm, the Company actively negotiates withother shareholders of Shenzhen Xieli on the cancellation of Shenzhen Xieli Company, meanwhile, the Companyhas entrusted a lawyer to promote the settlement of related issues through legal channels. The company willpromptly follow the follow-up progress. Fulfill information disclosure obligations.
(VI) Matters on waiver of preemption right and equity transfer of holding subsidiaries
On November 27, 2020, the company received the "Letter" sent by Jinjiang Group, informing the company inwriting that it intends to acquire the 40% equity of SAPO Photoelectric held by Hangzhou Jinhang EquityInvestment Fund Partnership (Limited Partnership) (hereinafter referred to as "Jinhang Investment"); On
December 21, 2020, the company received the Notice of Equity Transfer from Jinhang Investment, informing thecompany in writing that Jinhang Investment intends to transfer its 40% equity of SAPO Photoelectric, andaccording to the Company Law of the People's Republic of China and the Articles of Association of ShenzhenSAPO Photoelectric Technology Co., Ltd., it specially sought the company's opinions on the transfer matters.On December 25, 2020, after research and decision-making, the company formally replied to JinhangInvestment, and the company gave up the preemptive right to exercise the 40% equity of SAPO Photoelectric, theholding subsidiary of the company held by Jinhang Investment. For details, please refer to the Announcement onWaiver of Preemptive Rights of Holding Subsidiaries (No.2020-57) on Juchao Information Network(http://www.cninfo.com.cn) on December 26, 2020.In July 2021, the company received the Letter from Jinjiang Group, informing the company about the progressof the above-mentioned equity transfer: Jinhang Investment and the intended transferee Suzhou Advantage FordInvestment Center (Limited Partnership) (hereinafter referred to as "Advantage Ford") have completed theirinternal decision-making examination and approval, and the delivery conditions for Advantage Ford to accept 100%of the partnership share of Jinhang Investment have been met, and both parties will promote the transfer of thepartnership share. After the completion of the transfer procedure, Advantage Ford will directly hold 99.93333% ofthe partnership share of Jinhang Investment; Meanwhile, Zhejiang Hengjie Industrial Co., Ltd. indirectly holds apartnership share of 0.06667% of Jinhang Investment. As of July 28, 2021, for the above equity transfer, theindustrial and commercial change registration procedures have been completed. After the completion of thisequity transfer, the shareholders and equity ratio of SAPO Photoelectric, the holding subsidiary of the company,remain unchanged, and the scope of the consolidated statements of the company has not changed. Advantage Fordholds 40% equity of SAPO Photoelectrics through Jinhang Investment, and the strategic investor of SAPOPhotoelectric will be changed from Jinjiang Group to Advantage Ford. Advantage Ford has rich industrialresources, industrial investment and management experience, and both parties will give full play to theirrespective advantages to further improve and strengthen the main business of polarizer. For details, please refer tothe Progress Announcement on Waiver of Preemptive Rights and Equity Transfer of Holding Subsidiaries(No.2021-47) on Juchao Information Network (http://www.cninfo.com.cn).
| Announcement | Date of disclosure | Website for disclosure |
| Regarding waving the preemptive right of holding subsidiaries to purchase the equity in the transfer of equity | December 26,2020 | http//www.cninfo.com.cn. Announcement No.:2020-57 |
| July 28,2021 | http//www.cninfo.com.cn. Announcement No.: 2021-47 |
IV. Quarterly financial statements（I）Financial statement
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.In RMB
| Items | September 30,2021 | December 31,2020 |
| Current asset： | ||
| Monetary fund | 171,657,846.21 | 279,087,236.95 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 674,113,516.87 | 684,617,260.06 |
| Derivative financial assets | ||
| Notes receivable | 9,336,889.37 | 16,813,657.28 |
| Account receivable | 497,847,776.11 | 547,310,217.90 |
| Financing receivable | 110,450,952.65 | 102,051,314.08 |
| Prepayments | 57,086,881.48 | 16,902,516.39 |
| Insurance receivable | ||
| Reinsurance receivable |
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 125,239,026.80 | 5,265,002.71 |
| Including：Interest receivable | ||
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 688,703,515.15 | 480,847,581.44 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 77,482,083.47 | |
| Total of current assets | 2,334,436,404.64 | 2,210,376,870.28 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Creditor's Investment | ||
| Other Creditor's Investment | ||
| Long-term receivable | ||
| Long term share equity investment | 131,953,410.51 | 147,929,137.23 |
| Other equity instruments investment | 188,523,588.28 | 190,607,427.54 |
| Other non-current financial assets | 28,500,000.00 | 30,650,943.40 |
| Property investment | 107,514,093.97 | 110,572,471.92 |
| Fixed assets | 2,494,421,888.86 | 790,183,905.38 |
| Construction in progress | 25,547,842.12 | 1,301,750,141.12 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 35,772,084.40 | 36,048,978.91 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 5,042,987.32 | 2,876,561.53 |
| Deferred income tax asset | 2,268,464.24 | 5,243,425.26 |
| Other non-current asset | 95,760,086.27 | 143,307,689.66 |
| Total of non-current assets | 3,115,304,445.97 | 2,759,170,681.95 |
| Total of assets | 5,449,740,850.61 | 4,969,547,552.23 |
| Current liabilities | ||
| Short-term loans | ||
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 7,669,508.44 | |
| Account payable | 408,978,880.37 | 329,468,601.90 |
| Advance receipts | 2,928,999.85 | 3,542,394.33 |
| Contract liabilities | 115,090.96 | 279,631.27 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities |
| Entrusted selling of securities | ||
| Employees’ wage payable | 54,321,126.68 | 55,642,549.53 |
| Tax payable | 9,920,533.30 | 12,198,522.02 |
| Other account payable | 139,181,376.73 | 156,118,440.42 |
| Including：Interest payable | ||
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 623,115,516.33 | 557,250,139.47 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 660,298,055.62 | 343,100,174.35 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 114,619,577.28 | 110,740,322.21 |
| Deferred income tax liability | 58,844,468.45 | 59,141,666.58 |
| Other non-current liabilities | ||
| Total non-current liabilities | 833,762,101.35 | 512,982,163.14 |
| Total of liability | 1,456,877,617.68 | 1,070,232,302.61 |
| Owners’ equity | ||
| Share capital | 506,521,849.00 | 507,772,279.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,961,599,824.63 | 1,967,514,358.53 |
| Less：Shares in stock | 7,525,438.20 | |
| Other comprehensive income | 111,000,855.34 | 116,605,932.42 |
| Special reserve | ||
| Surplus reserves | 94,954,652.14 | 94,954,652.14 |
| Common risk provision | ||
| Retained profit | 153,241,400.81 | 86,912,390.50 |
| Total of owner’s equity belong to the parent company | 2,827,318,581.92 | 2,766,234,174.39 |
| Minority shareholders’ equity | 1,165,544,651.01 | 1,133,081,075.23 |
| Total of owners’ equity | 3,992,863,232.93 | 3,899,315,249.62 |
| Total of liabilities and owners’ equity | 5,449,740,850.61 | 4,969,547,552.23 |
Legal Representative: Zhang Jian Person in charge of accounting: He Fei Accounting Dept Leader: Zhu Jingjing
2. Consolidated Income statement between the beginning of the year and end of the report period
In RMB
| Items | Amount in this period | Amount in last period |
| I. Turnover | 1,672,288,457.42 | 1,472,945,950.97 |
| Including：Operating income | 1,672,288,457.42 | 1,472,945,950.97 |
| Interest income | ||
| Insurance fee earned | ||
| Commission charge and commission income | ||
| II. Total operating costs | 1,567,461,441.79 | 1,425,570,772.57 |
| Including ：Operating costs | 1,379,262,086.65 | 1,283,739,152.30 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Appropriation of deposit for duty, net | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 8,269,997.28 | 4,923,633.41 |
| Sales expense | 29,460,382.12 | 24,800,348.73 |
| Administrative expense | 79,307,075.50 | 68,842,342.28 |
| R & D expense | 72,845,148.60 | 40,565,492.91 |
| Financial expenses | -1,683,248.36 | 2,699,802.94 |
| Including：Interest expense | 6,633,474.73 | 230,028.92 |
| Interest income | -1,296,753.78 | -3,422,921.76 |
| Add：Other income | 15,598,802.48 | 19,189,814.08 |
| Investment gain（“-”for loss） | 14,814,120.81 | 17,794,208.51 |
| Including: investment gains from affiliates | -1,136,505.95 | -3,520,801.17 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | 1,670,362.39 | |
| Credit impairment loss | -3,185,779.89 | -9,265,693.91 |
| Impairment loss of assets | -29,586,926.60 | -44,600,057.88 |
| Assets disposal income | -2,055.96 | 262,826.07 |
| III. Operating profit（“-”for loss） | 104,135,538.86 | 30,756,275.27 |
| Add ：Non-operating income | 20,541,381.97 | 43,859.98 |
| Less: Non-operating expense | 573,557.64 | 124,313.63 |
| IV. Total profit(“-”for loss) | 124,103,363.19 | 30,675,821.62 |
| Less：Income tax expenses | 10,115,121.63 | 8,699,018.09 |
| V. Net profit | 113,988,241.56 | 21,976,803.53 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 113,988,241.56 | 21,976,803.53 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 81,524,665.78 | 25,446,148.57 |
| 2.Minority shareholders’ equity | 32,463,575.78 | -3,469,345.04 |
| VI. Net after-tax of other comprehensive income | -5,605,077.08 | 2,037,591.90 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -5,605,077.08 | 2,037,591.90 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | -1,562,879.45 | 2,018,288.05 |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | -1,562,879.45 | 2,018,288.05 |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| (II)Other comprehensive income that will be reclassified into profit or loss | -4,042,197.63 | 19,303.85 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4.Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | -4,042,197.63 | 19,303.85 |
| 7.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 108,383,164.48 | 24,014,395.43 |
| Total comprehensive income attributable to the owner of the parent company | 75,919,588.70 | 27,483,740.47 |
| Total comprehensive income attributable minority shareholders | 32,463,575.78 | -3,469,345.04 |
| VIII. Earnings per share | ||
| (I)Basic earnings per share | 0.1608 | 0.0500 |
| (II)Diluted earnings per share | 0.1608 | 0.0500 |
Legal Representative: Zhang Jian Person in charge of accounting：He Fei Accounting Dept Leader: Zhu Jingjing
3. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period
In RMB
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,666,106,504.72 | 1,279,089,802.91 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract |
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 8,987,999.63 | 91,793,042.68 |
| Other cash received from business operation | 72,639,079.51 | 126,958,254.84 |
| Sub-total of cash inflow | 1,747,733,583.86 | 1,497,841,100.43 |
| Cash paid for purchasing of merchandise and services | 1,386,893,620.51 | 1,270,741,207.87 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 189,814,822.46 | 125,654,764.15 |
| Taxes paid | 49,537,771.43 | 46,545,448.93 |
| Other cash paid for business activities | 189,107,313.26 | 104,750,813.16 |
| Sub-total of cash outflow from business activities | 1,815,353,527.66 | 1,547,692,234.11 |
| Net cash generated from /used in operating activities | -67,619,943.80 | -49,851,133.68 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 12,017,436.95 | 10,594,307.85 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 83,120.00 | 2,759,867.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 992,245,903.18 | 2,784,072,842.49 |
| Sub-total of cash inflow due to investment activities | 1,004,346,460.13 | 2,797,427,017.34 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 363,083,404.85 | 415,152,615.95 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 957,374,977.65 | 2,539,000,000.00 |
| Sub-total of cash outflow due to investment activities | 1,320,458,382.50 | 2,954,152,615.95 |
| Net cash flow generated by investment | -316,111,922.37 | -156,725,598.61 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 316,639,000.00 | 254,600,000.00 |
| Other financing –related cash received | ||
| Sub-total of cash inflow from financing activities | 316,639,000.00 | 254,600,000.00 |
| Cash to repay debts | ||
| Cash paid as dividend, profit, or interests | 30,808,915.80 | 577,232.24 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders |
| Other cash paid for financing activities | 7,820,298.30 | 9,341,774.70 |
| Sub-total of cash outflow due to financing activities | 38,629,214.10 | 9,919,006.94 |
| Net cash flow generated by financing | 278,009,785.90 | 244,680,993.06 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -957,310.47 | 862,495.62 |
| V.Net increase of cash and cash equivalents | -106,679,390.74 | 38,966,756.39 |
| Add: balance of cash and cash equivalents at the beginning of term | 278,337,236.95 | 268,646,588.18 |
| VI ..Balance of cash and cash equivalents at the end of term | 171,657,846.21 | 307,613,344.57 |
(II)Adjustments to the Financial Statements
1. Adjustment of the relevant items of the financial statements at the current year beginning according tothe new standards for financial instruments, the new standards for revenues and the new standards forlease implemented commencing from year 2021
□ Applicable √ Not applicable
2. Note to the retroactive adjustment of the previous comparative data according to the new standards forfinancial instruments and the new standards for lease implemented commencing from year 2021
□ Applicable √ Not applicable
（III）Audit reportIs the Third Quarterly Report be audited?
□ Yes √No
The Third Quarterly report is not audited.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.October 30,2021