ShenzhenTextile(Holdings)Co.,Ltd.
2021AnnualReport
March2022
I.ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors，theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.Ms.ZhangJian,TheCompanyleader,Mr.HeFei,ChieffinancialofficerandtheMs.ZhuJingjing,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisannualreport.AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,Investorsandrelatedpersonsshallkeepsufficientriskawareness,andshallunderstandthedifferencesbetweenplans,forecastsandcommitments,andremindinvestorsofinvestmentrisks.Thecompanyhasthemacroeconomicrisks,marketcompetitionrisksandrawmaterialrisks.Investorsareadvisedtopayattentiontoinvestmentrisks.Fordetails,pleaserefertothepossibleriskfactorsthatthecompanymayfaceintheXI"RisksfacingtheCompanyandcountermeasures"intheSectionIII"ManagementDiscussion&Analysis".Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:basedon506,521,849shares,acashdividendof0.50yuan(taxincluded)willbedistributedtoallshareholdersforevery10shares,and0shares(taxincluded)willbegivenasbonusshares.Thecapitalreservewillnotbeconvertedintosharecapital.ThisReporthasbeenpreparedinbothChineseandEnglish.Incaseofanydiscrepancy,theChineseversionshallprevail.
TableofContents
I.ImportantNotice,TableofcontentsandDefinitionsII.CompanyProfile&FinancialHighlights.III.ManagementDiscussion&AnalysisIV.CorporateGovernanceV.Environmental&SocialResponsibilityVI.ImportantEventsVII.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVIII.SituationofthePreferredSharesIX.CorporateBondX.FinancialReport
Documentsavailableforinspection
1.Accountingstatementscarriedwithpersonalsignaturesandsealsoflegalrepresentative,GeneralManager,ChiefFinancialofficer.
2.OriginalofAuditors’ReportcarriedwiththesealofCertifiedPublicAccountantsaswellaspersonalsignaturesofcertifiedPublicaccountants.
3.ThetextsofalltheCompany'sdocumentspubliclydisclosedonthenewspapersandperiodicalsdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod.TheabovedocumentswerecompletelyplacedattheOfficeofSecretariesoftheBoardofDirectorsoftheCompany.
Definition
| Termstobedefined | Refersto | Definition |
| Company/TheCompany/ShenTextile | Refersto | ShenzhenTextile(Holdings)Co.,Ltd |
| ArticlesofAssociation | Refersto | ArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd |
| Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | Refersto | NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment |
| TheControllingshareholder/ShenzhenInvestmentHoldingsCo.,Ltd. | Refersto | ShenzhenInvestmentHoldingsCo.,Ltd. |
| ShenchaoTechnology | Refersto | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. |
| SAPOPhotoelectric | Refersto | ShenzhenSOPOPhotoelectricCo.,Ltd. |
| JinjiangGroup | Refersto | HangzhouJinjiangGroupCo.,Ltd. |
| NittoDenko | Refersto | NittoDenkoCorporation |
| BeautyCentury | Refersto | ShenzhenBeautyCenturyGarmentCo.,Ltd. |
| ShenzhenXieli | Refersto | ShenzhenXieliAutomobileCo.,Ltd. |
| JinxinInvestment | Refersto | LanxiJinxinInvestmentManagementCo.,Ltd. |
| ChangxingJunying | Refersto | ChangxingJunyingEqkuityInvestmentPartnership（LP） |
| HuaijiInvestment | Refersto | HangzhouHuaijiInvestmentManagementCo.,Ltd. |
| ShenzhenTextileImport&Export | Refersto | ShenzhenTextileImport&ExportCo.,Ltd. |
| JinhangInvestment | Refersto | HangzhouJinhangInvestmentFundPartnership（LP） |
| Advantageford | Refersto | SuzhouAdvantagefordInvestmentCenter（LP） |
| Line4 | Refersto | TTFT-LCDpolarizerIIphaseLine4project |
| Line5 | Refersto | TFT-LCDpolarizerIIphaseLine5project |
| Line6 | Refersto | TFT-LCDpolarizerIIphaseLine6project |
| Line7 | Refersto | IndustrializationprojectofpolaroidforsuperlargesizeTV |
| “CSRC” | Refersto | ChinaSecuritiesRegulatoryCommission |
| CompanyLaw | Refersto | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | Refersto | SecuritiesLawofthePeople’sRepublicofChina |
| TheReport | Refersto | 2021AnnualReport |
II.CompanyProfile&FinancialHighlightsI.CompanyProfile
| Stockabbreviation | ShenTextileA,ShenTextileB | Stockcode | 000045,200045 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameinChinese | 深圳市纺织(集团)股份有限公司 | ||
| Chineseabbreviation(Ifany) | 深纺织 | ||
| Englishname(Ifany) | SHENZHENTEXTILE(HOLDINGS)CO.,LTD | ||
| Englishabbreviation(Ifany) | STHC | ||
| LegalRepresentative | ZhangJian | ||
| Registeredaddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | ||
| PostalcodeoftheRegisteredAddress | 518031 | ||
| Historicalchangeofthecompany'sregisteredaddress | No | ||
| OfficeAddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | ||
| Postalcodeoftheofficeaddress | 518031 | ||
| InternetWebSite | http://www.chinasthc.com | ||
| szfzjt@chinasthc.com | |||
II.Contactpersonandcontactmanner
| Boardsecretary | SecuritiesaffairsRepresentative | |
| Name | JiangPeng | LiZhenyu |
| Contactaddress | 6/F,ShenzhenTextileBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | 6/F,ShenzhenTextileBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen |
| Tel | 0755-83776043 | 0755-83776043 |
| Fax | 0755-83776139 | 0755-83776139 |
| jiangp@chinasthc.com | lizy@chinasthc.com |
III.Informationdisclosureandplaced
| NewspapersselectedbytheCompanyforinformationdisclosure | SecuritiesTimes,ChinaSecurities,ShanghaiSecuritiesDailyandHongkongCommercialDaily. |
| InternetwebsitedesignatedbyCSRCforpublishingtheAnnualreportoftheCompany | www.cninfo.com.cn |
| TheplacewheretheAnnualreportispreparedandplaced | OfficeoftheBoardofdirectors |
IV.ChangesinRegistration
| OrganizationCode | 19217374-9 |
| Changesinprincipalbusinessactivitiessincelisting(ifany) | InJuly2012,Thebusinessscopeofthecompanyischangedto"production,textilesprocessing,knitwear,clothing,upholsteryfabrics,belts,trademarkbands,handicrafts(withoutrestrictions);generalmerchandise,thespecialequipmentofthetextileindustry,textileequipmentandaccessories,instruments,standardparts,rawtextilematerials,dyes,electronicproducts,chemicalproducts,mechanicalandelectricalequipment,lightindustrialproducts,officesuppliesanddomestictrade(excludingthefranchise,thecontrolandthemonopolyofgoods);operationofimportandexportbusiness."InDecember2018,approvedbyShenzhenMarketSupervisoryAuthority,thecompany'sbusinessscopewaschangedto:productionandoperationofpolarizersandotheropticalfilmproducts;hotelandpropertyleasingandmanagement;productionandprocessingoftextiles,knitwear,clothing,anddecorativefabrics,Belts,trademarkbelts,handicrafts(excludingrestricteditems);departmentstores,specialequipmentforthetextileindustry,textileequipmentandaccessories,meters,standardparts,textilerawmaterials,dyes,electronicproducts,chemicalproducts,electromechanicalequipment,textileproducts,officeSuppliesanddomestictrade(excludingfranchise,control,andmonopolycommodities);importandexportbusiness. |
| Changesisthecontrollingshareholderinthepast(isany) | InOctober2004,InaccordancewiththeDecisiononEstablishingShenzhenInvestmentHoldingsCo.,Ltd.issuedbyState-ownedAssetsAdministrationCommitteeofShenzhenMunicipalPeople'sGovernment(ShenGuoZiWei(2004)No.223Document),ShenzhenInvestmentManagementCo.,Ltd.,thecontrollingshareholderoftheCompany,andShenzhenConstructionHoldingCompanyandShenzhenCommerceandTradeHoldingCompanymergedintoShenzhenInvestmentHoldingsCo.,Ltd. |
V.OtherRelevantInformationCPAsengaged
| NameoftheCPAs | GrantThorntonInternationalLtd（SpecialGeneaalPartnership） |
| Officeaddress： | 5/F,ScitechPalace22JianguomenwaiAvenue,ChaoyangDistrict,Beijing |
| NamesoftheCertifiedPublicAccountantsasthesignatories | ZhenZhifang,LiuDuoqi |
ThesponsorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod.
□Applicable√NotapplicableTheFinancialadvisorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod
□Applicable√NotapplicableVI.SummaryofAccountingdataandFinancialindexWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
| 2021 | 2020 | ChangesofthisperiodoversameperiodofLastyear(%) | 2019 | |
| Operatingincome（Yuan） | 2,293,747,892.06 | 2,108,964,687.80 | 8.76% | 2,158,184,855.71 |
| Netprofitattributabletotheshareholdersofthelistedcompany（Yuan） | 61,162,384.25 | 37,267,995.74 | 64.12% | 19,679,910.43 |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany（Yuan） | 40,650,013.22 | 18,084,607.04 | 124.78% | -41,179,849.56 |
| Cashflowgeneratedbybusinessoperation,net（Yuan） | -4,436,980.35 | 1,930,932.76 | -329.78% | 383,145,788.50 |
| Basicearningpershare(Yuan/Share) | 0.12 | 0.07 | 71.43% | 0.04 |
| Dilutedgainspershare(Yuan/Share) | 0.12 | 0.07 | 71.43% | 0.04 |
| WeightedaverageROE(%) | 2.19% | 1.36% | 0.83% | 0.75% |
| Endof2021 | Endof2020 | Changedoverlastyear（％） | Endof2019 | |
| Grossassets（Yuan） | 5,496,647,107.83 | 4,969,547,552.23 | 10.61% | 4,531,399,885.99 |
| Netassetsattributabletoshareholdersofthelistedcompany（Yuan） | 2,816,795,889.89 | 2,766,234,174.39 | 1.83% | 2,727,764,144.36 |
Thelowerofthecompany’snetprofitbeforeandafterthedeductionofnon-recurringgainsandlossesinthelastthreefiscalyearsisnegative,andtheauditor'sreportofthepreviousyearshowsthattheCompany’sgoingconcernabilityisuncertain.
□Yes√NoThelowerofthenetprofitbeforeandafterthedeductionofthenon-recurringgainsandlossesisnegative.
□Yes√NoVII.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards.
□Applicable√NotapplicableNodifference.
2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
VIII.MainFinancialIndexbyQuarters
InRMB
| Firstquarter | Secondquarter | Thirdquarter | Fourthquarter | |
| Operatingincome | 552,950,209.39 | 548,586,197.99 | 570,752,050.04 | 621,459,434.64 |
| Netprofitattributabletotheshareholdersofthelistedcompany | 42,776,335.85 | 33,826,738.54 | 4,921,591.39 | -20,362,281.53 |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany | 39,905,925.26 | 21,908,603.63 | 815,872.77 | -21,980,388.44 |
| NetCashflowgeneratedbybusinessoperation | -75,288,004.27 | 22,644,468.02 | -14,976,407.55 | 63,182,963.45 |
Whethersignificantvariancesexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedbytheCompany.
□Yes√NoIX.Itemsandamountofnon-currentgainsandlosses
√Applicable□Notapplicable
InRMB
| Items | Amount(2021) | Amount(2020） | Amount(2019) | Notes |
| Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade) | -961,982.35 | 273,229.58 | 54,895,878.65 | |
| Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 19,643,379.33 | 29,506,252.69 | 27,547,902.92 | Otherbenefitsofgovernmentsubsidiesthatareconfirmedrelatedtothemainbusiness. |
| Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest. | 989,313.04 | 469,470.61 | ||
| Othernon-businessincomeandexpendituresotherthantheabove | 19,964,046.87 | 1,310,556.26 | 4,582,973.27 | |
| Less:Influencedamountofincometax | 6,025,891.12 | 53,313.37 | 13,886,055.96 | |
| Influencedamountofminorshareholders’equity(aftertax) | 13,096,494.74 | 11,853,336.46 | 12,750,409.50 | |
| Total | 20,512,371.03 | 19,183,388.70 | 60,859,759.99 | -- |
Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition
□Applicable√Notapplicable
NoneFortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason.
□Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.
III.ManagementDiscussion&AnalysisI.IndustryinformationoftheCompanyduringthereportingperiodPolarizersarealsoknownaspolaroid,whichcancontrolthepolarizationdirectionofspecificlightbeams.Whennaturallightpassesthroughthepolarizer,thelightwhosevibrationdirectionisperpendiculartothetransmissionaxisofthepolarizerwillbeabsorbed,leavingonlypolarizedlightwhosevibrationdirectionisparalleltothetransmissionaxisofthepolarizer.Thedownstreampolarizerismainlyusedinthepanelindustry.Accordingtodifferentpaneltypes,polarizersmainlyincludeTN,STN,TFTandOLED.Currently,theglobalpolarizermarketisdominatedbypolarizersforTFT-LCDpanels.EachLCDpanelrequirestwopolarizers.TheCompanyisoneofthemajorR&D,productionandsalesenterprisesofpolarizersinChina,andtheleadingenterpriseofpolarizerindustryinChina.TheCompany'spolarizerisoneofthekeybasicmaterialsinthedisplaypanelindustry,anditsdemandisgreatlyaffectedbythefluctuationofthedisplaypanelmarket.Inthefirsthalfof2021,duetothestrongterminaldemandandtheshortageofupstreamrawmaterialsofvariousdisplaypanelscausedbytelecommutinganddistancelearning,thedisplaypanelmarketshowedapatternofshortsupply,thepanelpricecontinuedtorise,andthepolarizermarketwitnessedagoodprosperity.Inthesecondhalfof2021,withtheincreaseofvaccinationrateforCOVID-19,thepandemiceased,themarketdemandgraduallystabilized,andthesupplyofrawmaterialsgraduallyrecovered,thedisplaypanelmarketendeditsupwardcycle,thepricesofdifferenttypesofpanelsdroppedsuccessively,andthemarketdemandforpolarizersgraduallystabilized.II.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod
(1)Thecompany'smainbusinessThecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.Duringthereportingperiod,theCompany'smainbusinesshasnotchangedsignificantly.First,theCompanyfocusedonadjustingitsmarketingstrategy,continuouslypromotingtheoptimizationofcustomerandproductstructure,balancingthesalesshareofmajorpanelcustomers,andenhancingtheanti-riskandprofitability;Second,itstrengthenedtheproductionmanagement,improvedtheproductioncapacityandproductquality,furtherspeededuptheelevator,carriedoutequipmentandtechnicaltransformation,improvedtheautomationlevelinthelaterstage,andcontinuouslyimprovedtheproductioncapacityandproductquality;Third,itcontrolledthecostandreducedthecostthroughanumberofmeasures,suchastheimportofalternativerawmaterialsandthebroadeningofprocurementchannels;Fourth,itcontinuedtoovercometheadverseeffectsoftheCOVID-19,andmadeeveryefforttopromotetheprojectconstructionandrampupofLine7.TheLine7projectwasputintoproductioninmid-Julyandenteredtherampupperiod,withasteadyincreaseinyieldandmachinespeed,layingasolidfoundationfortherapidincreaseofoversizedordersinthewholeyearof2022andtherealizationofproductionlineprofitability;Fifth,itbuilttheR&Dmanagementsystem,strengthenedtheR&Deffortsonnewproducts,newmaterials,productionprocessesandotheraspects,andintroducedmorealternativerawmaterials,amongwhich,thepolarizerforOLEDTVsuccessfullyachievedmassproduction,fillingthedomesticgap;Sixth,iteffectivelyrevitalizedtheexistingassets.TheCompanyimplementedthetransferliquidationworkforsomesubsidiariesandshareholdingenterprises,andconcentratedondevelopingthemainbusinessofpolarizers;Seventh,itimplementedtheepidemicpreventionandcontrolwork,paidattentiontosafeandgreenproduction,focusedonrectification,safetyandenvironmentalprotectionissues,andpromotedthesafeandstable
developmentofenterprises.Duringthereportingperiod,theCompanyachievedoperatingincomeofRMB2.294billion,withayear-on-yearincreaseof8.76%;RealizedatotalprofitofRMB86.23millionwithayear-on-yearincreaseof66.79%;AndachievedanetprofitattributabletoshareholdersoflistedcompaniesofRMB61.16million,withayear-on-yearincreaseof64.12%.Duringthereportingperiod,thenetprofitattributabletoshareholdersoflistedcompaniesincreasedsignificantlycomparedwiththesameperiodoflastyear.Themainreasonsareasfollows:First,in2021,thepolarizermarketwasgenerallystableandimproved,theCompanyfurtheroptimizedtheorderstructure,andtheaveragegrossprofitmarginincreasedsteadily;Second,inordertocopewiththeCOVID-19in2020andsupporttheenterprisestoovercomethedifficultiestogether,theCompanyactivelyrespondedtothecallofShenzhenMunicipalPartyCommittee,MunicipalGovernmentandState-ownedAssetsSupervisionandAdministrationCommissiontoreducetherentforsometenantsinFebruary,MarchandNovember2020,andtherentincomeofsuchperiodincreasedsubstantiallyyearonyear.
(2)MainproductsandtheirpurposesCurrently,theCompanyhas7massproductionlinesforpolarizers,coveringTN,STN,TFT,OLED,3D,dyesheet,opticalfilmfortouchscreenandotherfields,mainlyusedinTV,NB,navigator,Monitor,vehicle,industrialcontrol,instruments,smartphones,wearabledevices,3Dglasses,sunglassesandotherproducts，thecompanyhasbecomeamainstreampanelcompanysuchasHuaxingOptoelectronics,BOE,Sharp,LGD,ShenzhenTianma,Huike,etc.bycontinuouslystrengtheningsaleschannelexpansionandbuildingitsownbrand.Qualifiedsuppliers.TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows:
| Line | Place | Productbreadth | Plannedcapacity | Mainprojuct |
| Line1 | Pingshan | 500mm | 600，000m2 | TN/STN/Dyesheet |
| Line2 | Pingshan | 500mm | 1.2millionm2 | TN/STN/CSTN |
| Line3 | Pingshan | 650mm | 1millionm2 | TFT |
| Line4 | Pingshan | 1490mm | 6millionm2 | TFT |
| Line5 | Pingshan | 650mm | 2millinm2 | TFT |
| Line6 | Pingshan | 1490mm | 10millionm2 | TFT/OLED |
| Line7 | Pingshan | 2500mm | 32millinm2 | TFT/OLED |
(3)Company'sbusinessmodel
ThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win.
(4)MajorfactorsfordrivingtheCompany'sperformance
Referto"III.Analysisoncorecompetitiveness"inthissectionfordetails.
(5)MarketpositionofcompanyproductsCurrently,theCompanyisoneofthemajorR&D,productionandsalesenterprisesofpolarizersinChina,andistheleadingenterpriseinthedomesticpolarizerindustry.TheCompanymainlyfocusesonmediumandlarge-sizedpolarizerproducts,andmeanwhilehastheproductioncapacityofmulti-sizeandmulti-seriesproducts.
Inthefuture,theCompanywillfurtheradjustandoptimizetheproductstructureandcustomerstructure,improvetheinternalmanagementlevel,optimizeandupgradetheproductiontechnologylevel,improvetheproductionefficiencyandproductquality,broadentheprocurementchannels,reducetheproductioncostandconsolidateandimprovethemarketcompetitiveness.
(6)Advantagesanddisadvantagesincompetition
1.CompetitiveedgeSee"III.Analysisofcorecompetitiveness"inthischapterfordetails.
2.CompetitivedisadvantageSee"XI.FuturedevelopmentprospectoftheCompany(III)Possiblerisks"inthischapterfordetails.III.AnalysisOncoreCompetitiveness
(1)Technologyadvantages.SAPOPhotoelectricisthefirstdomesticnationalhigh-techcompanywhichenteredintotheR&Dandproductionofthepolarizer，Weareoneofthelargest,mosttechnicalandprofessionalpolarizerR&Dteamsinthecountryandhasmorethan20yearsofoperatingexperienceinthepolarizerindustry.ProductsincludeTN-type,STN-type,IPS-TFT-type,VA-TFT-type,OLED,vehicle-mountedindustrialdisplay,flexibledisplay,3Dstereoandpolarizerforsunglasses,andopticalfilmfortouchscreens,etc.,Wehaveproprietarytechnologyforpolarizersandnewintellectualpropertyrightsforvariousnewproducts.Asoftheendofthisreport,SAPOPhotoelectricappliedfor115inventionpatentsandwasauthorizedwith89items,amongwhich:36domesticinventionpatents(16patentsgotauthorized);72domesticutilitymodelpatents(69patentsgotauthorized);1overseasinventionpatent(0patentsgotauthorized);6overseasutilitymodelpatents(4patentsgotauthorized).Therewere4nationalstandardsand2industrialstandardsthatweredevelopedbythecompanyareapprovedandthenwillbeimplemented.willbeimplemented.SAPOPhotoelectrichasthreeinnovativeplatforms:GuangdongEngineeringTechnologyResearchCenter,ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratoryandShenzhenEnterpriseTechnologyCenter.ItfocusesontheR&DandindustrializationofLCDpolarizercoreproductiontechnology,thedevelopmentandindustrializationofOLEDpolarizernewproducts,andthelocalizationresearchofpolarizerrawmaterials,amongwhich,massproductionhasbeenachievedforOLEDTVpolarizerproductssuccessfully,fillingthedomesticgap.Byintroducingallkindsofprecisiontestequipment,itimproveslabtrialandpilot-scaletestmethods,andbuildsacollaborativeinnovationplatformforIndustry-University-Researchcooperation,toenhancetheR&Dlevelcomprehensively.
(2)Talentsadvantages.TheCompanyhasapolarizermanagementteamandateamofseniortechnicianswithstrongtechnicalability,longcooperationtime,richexperienceandinternationalvision.ByestablishingatechnicalcooperationrelationshipwithNittoDenkoCorporation,aworld-classpolarizermanufacturer,theCompanylearnsadvancedpolarizerproductionmanagementconcepts,andmeanwhileaccumulatestechnicalexperiencethroughindependentinnovation,improvesitscorecompetitiveness,andgraduallyaccumulatesitsownbrand,technology,operationmanagementandotheradvantages.In2021,theCompanycontinuedtodeepenthemarket-orientedreform,practicedtheconceptof"Don'tracehorses",andsetagoodvanefortalentselectionandemployment;Itimprovedthetalentgrowthchannel,establishedthemanagementmethodofemployeepromotionbyrank,andhelpedemployeesgrowanddevelop;Itimprovedtheincentivemechanismofassessment,andfullyutilizedtheincentiveandspurroleofassessment;Activelyexploredthelong-termincentiveandrestraintoftheCompany'smanagementlevel,employeebenefitawarddistributionmechanism,EmployeeStockOwnershipPlan(ESOP),etc.,andbuiltavaluedistributionmechanismofbenefitsharingandriskpooling.
(3)Marketadvantages.Thecompanyhasgoodcustomergroupsnotonlyindomesticmarketbutinforeignmarket,
comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinthelocalizationforsupporting,closetothepanelmarket,aswellasthestrongsupportofthenationalpolicy.Intermsofmarketdemand,withthemassproductionofthe10.5/11-generationTFT-LCDpanelproductionlinesunderconstructionandplannedforthenextfewyears,theproductioncapacityofhigh-generationTFT-LCDpanelsinmainlandChinawillincreasesignificantlyinthenextfewyears,thecorrespondingdomesticpolaroidfilmmarketdemandhasalsoincreased,andthedomesticmarketisthemostimportantmarketforpolaroidmanufacturers,especiallyinthelarge-sizepolarizermarket.Mainlandpolarizermanufacturerswillusherinimportantindustryopportunities;intermsofmarketdevelopment,thecompanytakesproductionmaterialcontrolasthecore,technologyservicesastheguide,customerneedsasthefocus,organicallycombinesproductionandsales,establishesarapidresponsemechanism,fullyexploitslocalizationadvantages,andusesitsownaccumulatedtechnologyandtalents,doesagoodjobofpeer-to-peerprofessionalservices,formsastablesupplychainandincreasesmarketshare.
(4)Qualityadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.
(5)Managementadvantages.SAPOPhotoelectrichasaccumulatedrichmanagementexperiencesinmorethan20yearsinthemanufacturingofpolarizer,possessingthehomemostadvancedcontroltechnologyoftheproductionmanagementprocessofthepolarizerandqualitymanagementtechnologyandthestablerawmaterialprocurementchannelsoforthmanagementsystems.Thecompanyhadcarriedoutcomprehensivebenchmarkingwork,organizedthemanagementpersonneltolearnadvancedexperiencesfromcustomersandpeerstoforcetheelevationofmanagementability,anddrewontheforeigncompany’smanagementexperiencesofpolarizer,optimizedthecompany'sorganizationalstructure,reducedthemanagerialhierarchyandfurtherenhancedthecompany'smanagementefficiency.Aftertheintroductionofthestrategicinvestor,ThroughclosecooperationwithJinjiangGroup,wecomplementeachother'sstrengths,absorbthevitalityofprivateenterprises,continuetoimplementadvancedmanagementsystems,reasonableincentivemechanisms,etc.,improvetheefficiencyofdecision-making,enhancethespeedofmarketresponse,improvetheresearchanddevelopmentincentivesystem,andalsorealizethedeepintegrationofthevalueofthecompanyanditsemployeesandstimulatesthenewvitalityofthebusiness.
(6)Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry,whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholeindustrychainofthepaneldisplayindustryclusterinShenzhen.Recognizedasanationalhigh-techenterprise,theCompanyisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational,provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,theCompanytightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherlowerits
productioncostandimproveitsproductcompetitiveness.IV.Mainbusinessanalysis
(1)General
2021isthefirstyearofthe14thFive-YearPlan,anditisalsoacrucialyearfortheCompanytodeepenreform,transformationanddevelopment.Inthepastyear,challengedbythesevereandcomplicatedeconomicsituation,theCompanyhasunifiedthoughts,strengthenedconfidence,workedhardtogether,overcamethedifficulties,andmadeeffortstoturnchallengesintoopportunities.IthasmadenewprogressinitsprojectconstructionofLine7,operationandmanagement,andexplorationinpropertyleasing,layingasolidfoundationfortheCompany'sfurthertransformationanddevelopment.
Duringthereportingperiod,theCompanyachievedoperatingincomeofRMB2.294billion,withayear-on-yearincreaseof8.76%;RealizedatotalprofitofRMB86.23millionwithayear-on-yearincreaseof
66.79%;AndachievedanetprofitattributabletoshareholdersoflistedcompaniesofRMB61.16million,withayear-on-yearincreaseof64.12%.Thecompany'soperatingincome,totalprofitandnetprofitattributabletoshareholdersoflistedcompaniesallincreasedcomparedwiththesameperiodoflastyear.Themainreasonsareasfollows:First,in2021,thepolarizermarketwasgenerallystableandimproved,theCompanyfurtheroptimizedtheorderstructure,andtheaveragegrossprofitmarginincreasedsteadily;Second,in2020,inordertocopewiththeCOVID-19in2020andsupporttheenterprisestoovercomethedifficultiestogether,theCompanyactivelyrespondedtothecallofShenzhenMunicipalPartyCommittee,MunicipalGovernmentandState-ownedAssetsSupervisionandAdministrationCommissiontoreducetherentforsometenantsinFebruary,MarchandNovember2020,andtherentincomeofsuchperiodincreasedyearonyear.Reviewofthecompany'skeyworkscarriedoutin2021asfollows:
1.AchievedsustainedprofitabilityinitsmainpolarizerbusinessIn2021,first,theCompanyfocusedonadjustingitsmarketingstrategy,continuouslypromotingtheoptimizationofcustomerandproductstructure,balancingthesalesshareofmajorpanelcustomers,andenhancingtheanti-riskandprofitability;Second,itstrengthenedtheproductionmanagement,improvedtheproductioncapacityandproductquality,furtherspeededuptheelevator,carriedoutequipmentandtechnicaltransformation,improvedtheautomationlevelinthelaterstage,andcontinuouslyimprovedtheproductioncapacityandproductquality;Third,itcontrolledthecostandreducedthecostthroughanumberofmeasures,suchasthesubstitutionofrawmaterialsandthebroadeningofprocurementchannels;Fourth,itincreasedtheintroductionandselectionoftalentsandenhancedthecompetitivenessoftheteam.Meanwhile,theCompanyestablishedtheR&Dmanagementsystem,strengthenedtheR&Dofnewproducts,newmaterials,productionprocessesandotheraspectsandtheimportofalternativerawmaterials,anddeveloped,evaluatedandpromoted93kindsofmaterialsintotal.In2021,ithad8patentapplications,including4nationalinventionpatentsand4utilitymodelpatents;anditwasgrantedwith10patents,including2inventionpatentsand8utilitymodelpatents.
2.Itstextilebusinessremainedstable,anditspropertyleasingandmanagementbusinessweresteadilyimproving
In2021,theCompanymadegreateffortstoovercometheinfluenceofexchangeratefluctuation,COVID-19andrisingrawmaterialprices,andtookeffectivemeasurestostrengthenproductR&D,expandnewmarketareas,andrealizesustainedprofitabilityoftextilebusiness.In2021,thedownturnoftherealeconomybroughtcertainpressuretopropertyleasinganditsmanagementbusiness.TheCompanytooktheinitiativetointroducehigh-qualitynewtenants,andstrengthenedpropertymanagement,continuouslyimprovedservicequality,paidcloseattentiontothepreventionandcontrolof
COVID-19,andachievedagoodsituationofdouble100%forbothrentalrateandrentalrecoveryrate,withpropertyleasinganditsmanagementbusinessbothgrowingsteadily.
3.StrivedtopromotetheconstructionandrampupofLine7InMarch2021,theCompanysetupa100-dayattackworkinggroupforLine7project,launchedaspecialactivityof"Productionof100daystopaytributetothe100thanniversaryofthefoundingoftheParty",acceleratedtheprogressofchemicaltestrunofLine7project,andfinallycompletedtheperformancestabilitytestruninJuly2021,andstartedthetestrunramp-up.InordertospeeduptheclimbingprocessofLine7project,effectivelypromotetechnicalupgradingandcustomerintroduction,andachievebetteroperatingresults,theCompanyorganizedthespecialworkof"Strivingfor50days"formassproductionrampupofLine7inmid-November,2021,focusingonimprovingthemaintechnicalindicatorssuchasspeedandyield.
AsofDecember31,2021,Line7wasinthestageofcapacityrampup,themaintechnicalindicatorssuchasspeedandyieldwerecontinuouslyimproved,andtheintroductionofmajorcustomerproductswasprogressingsteadily.
4.Organizedepidemicpreventionandcontroleffectively,andachievedworksafetyinastableandorderlymanner
In2021,theCompanyattachedgreatimportancetoepidemicpreventionandcontrolandworksafetymanagement,strengthenedbottom-linethinking,overcameunawarenessandflukemind,andimplementeditstrictlyandtightly.First,itorganizedtheworksafetyinspectionofthird-partyorganizationstoinvestigateandrectifythepotentialsafetyhazardsofoldpropertyequipmentassets.Second,itactivelyimplementedtheupgradingandtransformationofsafetyandenvironmentalprotection,andpracticedthesustainabledevelopmentproductionconceptofgreenenvironmentalprotection,energysavingandconsumptionreduction.SAPOIndustrialParkwonthe"OutstandingGreenEnvironment-friendlyFactoryAward"of"GreenAsiaPacific2021EnvironmentalProtectionAchievementAward".Third,itcontinuedtoimplementthenormalmanagementofepidemicpreventionandcontrol,strengthenedorganizationalleadership,andbuiltanepidemicpreventionnetworkinanall-roundway.Theepidemicpreventionandcontrolworkspecialclassconductedandcoordinatedtheeffectiveepidemicpreventionmechanismlevelbylevel,ensuredthatalldeploymentmeasureswereimplementedsolidly,andeffectivelyprotectedthelifesafetyofemployees.
5.Insistedonstrengtheningthefoundation,andconstantlyconsolidatedthegrassrootspartybuildingwork
In2021,underthestrongleadershipofthePartyCommitteeofShenzhenState-ownedAssetsSupervisionandAdministrationCommissionandthePartyCommitteeofShenzhenInvestmentHoldings,thePartyCommitteeoftheCompanyadheredtotheguidanceofXiJinping'snewerasocialismwithChinesecharacteristics,thoroughlyimplementedthespiritofthe19thNationalCongressoftheCommunistPartyofChinaanditspreviousplenarysessions,firmlygraspedthegeneralrequirementsofpartybuildinginthenewera,carriedoutin-depthstudyandeducationofpartyhistory,focusedonwarmlycelebratingthe100thanniversaryofthefoundingoftheCommunistPartyofChina(CPC),closelyfocusedonthequalityimprovementactionsoflistedcompanies,solidlypromotedthedeploymentandimplementationof"six-degreepartybuilding",andtheCompany'shigh-qualitydevelopmentwithhigh-qualitypartybuilding.
(2)Revenueandcost
1.ComponentofBusinessIncome
InRMB
| 2021 | 2020 | Increase |
| Amount | Proportion | Amount | Proportion | /decrease | |
| Totaloperatingrevenue | 2,293,747,892.06 | 100% | 2,108,964,687.80 | 100% | 8.76% |
| OnIndustry | |||||
| Manufacturing | 2,154,422,129.35 | 93.93% | 2,012,255,019.03 | 95.41% | 7.07% |
| LeaseandManagementofProperty | 111,568,500.55 | 4.86% | 85,177,866.03 | 4.04% | 30.98% |
| Other | 27,757,262.16 | 1.21% | 11,531,802.74 | 0.55% | 140.70% |
| OnProducts | |||||
| LeaseandManagementofProperty | 111,568,500.55 | 4.86% | 85,177,866.03 | 4.04% | 30.98% |
| Textile | 54,932,578.58 | 2.39% | 60,503,325.78 | 2.87% | -9.21% |
| Polarizersheet | 2,099,489,550.77 | 91.53% | 1,951,751,693.25 | 92.54% | 7.57% |
| Other | 27,757,262.16 | 1.21% | 11,531,802.74 | 0.55% | 140.70% |
| Area | |||||
| Domestic | 2,039,625,757.16 | 88.92% | 1,768,190,864.75 | 83.84% | 15.35% |
| Overseas | 254,122,134.90 | 11.08% | 340,773,823.05 | 16.16% | -25.43% |
| Sub-salemodel | |||||
| Credit | 2,154,422,129.35 | 93.93% | 2,012,255,019.03 | 95.41% | 7.07% |
| Cashonsale | 139,325,762.71 | 6.07% | 96,709,668.77 | 4.59% | 44.07% |
2.SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%
√Applicable□Notapplicable
InRMB
| Turnover | Operationcost | Grossprofitrate(%) | Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%) | Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%) | Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%) | |
| OnIndustry | ||||||
| Manufacturing | 2,154,422,129.35 | 1,877,251,173.50 | 12.87% | 7.07% | 5.10% | 1.63% |
| LeaseandManagementofProperty | 111,568,500.55 | 22,996,155.29 | 79.39% | 30.98% | 5.04% | 5.09% |
| OnProducts | ||||||
| Polarizersheet | 2,099,489,550. | 1,828,737,245. | 12.90% | 7.57% | 5.24% | 1.95% |
| 77 | 98 | |||||
| LeaseandManagementofProperty | 111,568,500.55 | 22,996,155.29 | 79.39% | 30.98% | 5.04% | 5.09% |
| Textile | 54,932,578.58 | 48,513,927.52 | 11.68% | -9.21% | 0.10% | -8.21% |
| Area | ||||||
| Domestic | 2,039,625,757.16 | 1,692,710,152.65 | 17.01% | 15.35% | 10.46% | 3.67% |
| Overseas | 254,122,134.90 | 215,809,260.63 | 15.08% | -25.43% | -23.44% | -2.20% |
| Sub-salemodel | ||||||
| Credit | 2,154,422,129.35 | 1,877,251,173.50 | 12.87% | 7.07% | 5.10% | 1.63% |
| Cashonsale | 139,325,762.71 | 31,268,239.78 | 77.56% | 44.07% | 11.28% | 6.61% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestonyear’sscopeofperiod-end.
□Applicable√Notapplicable
3.WhethertheCompany’sPhysicalSalesIncomeExceededServiceIncome
√Yes□No
| Classification | Items | Unit | 2021 | 2020 | Changes |
| Polarizersheet | Sales | 10,000squaremeters | 2,517.63 | 2,131.28 | 18.13% |
| Production | 10,000squaremeters | 2,518.62 | 2,124.96 | 18.53% | |
| Stock | 10,000squaremeters | 139.51 | 121.69 | 14.64% | |
| Knittedclothing | Sales | 10,000pieces | 269 | 358 | -24.86% |
| Production | 10,000pieces | 280 | 385 | -27.27% | |
| Stock | 10,000pieces | 91 | 80 | 13.75% |
Explanationforayear-on–yearchangeofover30%
□Applicable√Notapplicable
4.DegreeofPerformanceoftheSignificantSalesContractSigneduptothisReportPeriod
□Applicable√Notapplicable
5.ComponentofbusinesscostIndustrycategory
InRMB
| Industryclassification | Items | 2021 | 2020 | Increase/Decrease(%) | ||
| Amount | Proportionintheoperatingcosts(%) | Amount | Proportionintheoperatingcosts(%) | |||
| Manufacturing | Polarizersheet,Knittedclothing | 1,877,251,173.50 | 98.36% | 1,786,199,780.24 | 98.45% | 5.10% |
| LeaseandManagementofProperty | Rental，Accommodation | 22,996,155.29 | 1.20% | 21,892,925.24 | 1.21% | 5.04% |
| Other | Other | 8,272,084.49 | 0.43% | 6,205,689.54 | 0.34% | 33.30% |
InRMB
| Classificationofproducts | Items | 2021 | 2020 | Increase/Decrease(%) | ||
| Amount | Proportionintheoperatingcosts(%) | Amount | Proportionintheoperatingcosts(%) | |||
| Polarizersheet | Directmaterials | 1,460,202,220.50 | 76.51% | 1,469,416,728.04 | 80.99% | -0.63% |
| Polarizersheet | Directlabor | 56,423,729.38 | 2.96% | 50,884,076.28 | 2.80% | 10.89% |
| Polarizersheet | Powercost | 49,263,443.02 | 2.58% | 44,834,128.46 | 2.47% | 9.88% |
| Polarizersheet | Manufacturingcost | 262,847,853.08 | 13.77% | 172,598,639.68 | 9.51% | 52.29% |
| Knittedclothing | Directmaterials | 29,157,370.18 | 1.53% | 29,570,175.97 | 1.63% | -1.40% |
| Knittedclothing | Directlabor | 9,659,820.67 | 0.51% | 10,388,237.67 | 0.57% | -7.01% |
| Knittedclothing | Powercost | 968,232.62 | 0.05% | 1,256,258.98 | 0.07% | -22.93% |
| Knittedclothing | Manufacturingcost | 8,728,504.05 | 0.46% | 7,251,535.16 | 0.40% | 20.37% |
Note
None
6.WhetherChangesOccurredinConsolidationScopeintheReportPeriod
□Yes√No
7.RelevantSituationofSignificantChangesorAdjustmentoftheBusiness,ProductorServiceintheCompany’sReportPeriod
□Applicable√Notapplicable
8.SituationofMainCustomersandMainSupplierInformationofMainCustomers
| Totalsalesamounttotop5customers(RMB) | 1,600,042,900.00 |
| Proportionofsalestotop5customersin | 69.76% |
| Proportionofthesalesvolumetothetopfivecustomersinthetotalsalestotherelatedpartiesintheyear | 0.00% |
InformationoftheCompany’stop5customers
| No | Name | Amount（RMB） | Proportion(%) |
| 1 | Customer1 | 673,734,600.00 | 29.37% |
| 2 | Customer2 | 424,287,100.00 | 18.50% |
| 3 | Customer3 | 256,965,400.00 | 11.20% |
| 4 | Customer4 | 135,380,400.00 | 5.90% |
| 5 | Customer5 | 109,675,400.00 | 4.78% |
| Total | -- | 1,600,042,900.00 | 69.76% |
Othernote
□Applicable√NotapplicablePrincipalsuppliers
| Totalpurchaseoftop5Suppliers（RMB） | 849,718,112.61 |
| Percentageoftotalpurchaseoftop5suppliersIntotalannualpurchase(% | 44.50% |
| Proportionofpurchaseamountfromthetop5suppliersinthetotalpurchaseamountfromtherelatedpartiesintheyear | 0.00% |
Informationaboutthetop5suppliers
| No | Name | Amount（RMB） | Proportion(%) |
| 1 | Supplier1 | 226,545,838.65 | 11.86% |
| 2 | Supplier2 | 191,071,560.06 | 10.01% |
| 3 | Supplier3 | 151,236,748.24 | 7.92% |
| 4 | Supplier4 | 147,731,715.41 | 7.74% |
| 5 | Supplier5 | 133,132,250.24 | 6.97% |
| Total | -- | 849,718,112.61 | 44.50% |
Othernote
□Applicable√Notapplicable
(3)Expenses
InRMB
| 2021 | 2020 | Increase/Decrease(%) | Notes | |
| Saleexpenses | 37,973,336.39 | 28,644,230.87 | 32.57% | Mainlyduetoattributabletothepurchaseofnewmaterialinsuranceandtheincreaseinsalesstaffremuneration. |
| Administrative | 122,088,830.15 | 105,094,934.36 | 16.17% |
| expenses | ||||
| Financialexpenses | -130,344.09 | 8,287,888.28 | -101.57% | Mainlyduetotheyear-on-yearincreaseinforeignexchangegains. |
| R&Dexpenses | 103,508,764.53 | 67,160,964.22 | 54.12% | Mainlyduetotheincreaseinresearchanddevelopmentinvestmentinthecurrentperiod. |
(4)ResearchandDevelopment
√Applicable□Notapplicable
| NameofmainR&Dproject | Projectpurpose | Projectprogress | Goaltobeachieved | ExpectedimpactonthefuturedevelopmentoftheCompany |
| R&Dofkeytechnologiesofhigh-performancepolarizerforlarge-sizedisplaypanel | Achievemassproductionofhigh-performancepolarizersforlarge-sizedisplaypanels | completed | RealizemassproductionsupplyandapplicationofdomesticallyproducedTVproducts | Enrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness |
| DevelopmentofPOLProductsforTVwithlargesizeandhighPPI | tosatisfythemarket'sneeds | Someproductshavepassedtheclientopticalverification | completeclientauthentication | Withthecontinuousincreaseof4Kand8Kproductsofpanelmanufacturers,thedevelopmentofthisprojectcanmeetthemarketdemandforsuchpolarizers |
| DevelopmentofthinNBproducts | Toachievelarge-scaleproductionoftheproduct | completed | Realizemassproductionsupply | Improvemarketcompetitivenessinnotebookcomputerfield |
| Productdevelopmentofvehiclepolarizers | Meetproductentry-levelverificationrequirements | completed | Stabilizethecontinuousproductionprocess,determinetheproductionprocessguideline,andmeettheentry-levelverificationrequirementsoftheproduct | Improvethecompany'sproductcompetitivenessandmeetcustomerneeds |
| DevelopmentofOLEDTVproducts | Toachievelarge-scaleproductionoftheproduct | partiallycompleted | Realizemassproductionsupply | Enrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness;laythefoundationforthesubsequentdevelopmentofhigh-opticalproducts |
| ResearchandapplicationofkeytechnologiesofpolarizersforIPSmobilephone | Toachievelarge-scaleproductionoftheproduct | completed | Realizemassproductionsupply | Enrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness |
| R&DofpolarizertechnologyforOLEDmobilephone | Havetheproductioncapacityofthisproduct | completed | Technicalindicatorsreachacertainlevel,withtheproductioncapacityoftheproduct | PromotethelocalizationprocessofpolarizerproductsforOLEDmobilephones |
| DevelopmentofOLEDwearableapplication | tosatisfythemarket'sneeds | completed | Completecustomerverificationofaproduct | nhancethecompany'sproductcompetitiveness |
| Developmentofultra-wideVAproducts | Toachievelarge-scaleproductionoftheproduct | completed | Realizemassproductionsupply | enhancethecompany'sproductcompetitiveness |
| Developmentofultra-wideIPSproducts | Havetheproductioncapacityofthisproduct | completed | Technicalindicatorsreachacertainlevel,withtheproductioncapacityoftheproduct | enhancethecompany'sproductcompetitiveness |
| Productdevelopmentofblack-and-whitedisplaypolarizerandsunglasses | Toachievelarge-scaleproductionoftheproduct | completed | Realizemassproductionsupply | Enrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness |
| Developmentofenvironment-friendlyPSAadhesive | Fulfillthesocialresponsibilityofenvironmentalprotection | completed | Completeproductdevelopmentandputintoproductionuse | Protectthehealthofemployeesandmakeduecontributionstoimprovingtheenvironment;canachievestablesupplytocustomersandrelievesupplyrisks |
| R&Dofkeytechnologyforpolarizerextension | satisfycustomer'srequest | completed | Theprocesscanmeetmassproductionsupply | Increaseproductioncapacityandreducematerialcosts;improvethecompany'sproductperformance |
Company'sresearchanddevelopmentpersonnelsituation
| 2021 | 2020 | Increase/decrease | |
| NumberofResearchandDevelopmentpersons(persons) | 145 | 169 | -14.20% |
| ProportionofResearchandDevelopmentpersons | 10.61% | 12.34% | -1.73% |
| AcademicstructureofR&Dpersonnel | —— | —— | —— |
| AgecompositionofR&Dpersonnel | —— | —— | —— |
TheCompany'sR&Dinvestmentsituation
| 2021 | 2020 | Increase/decrease | |
| AmountofResearchandDevelopmentInvestment(InRMB) | 103,508,764.53 | 67,160,964.22 | 54.12% |
| ProportionofResearchandDevelopmentInvestmentofOperationRevenue | 4.51% | 3.18% | 1.33% |
| AmountofResearchandDevelopmentInvestmentCapitalization(InRMB) | 0.00 | 0.00 | |
| ProportionofCapitalizationResearchandDevelopmentInvestmentofResearchandDevelopmentInvestment | 0.00% | 0.00% |
ReasonsandinfluenceofsignificantchangesinR&DpersonnelcompositionoftheCompany
□Applicable√NotapplicableTheReasonoftheProminentChangeinTotalAmountofResearchandDevelopmentInputOccupyingtheBusinessIncomeYearonYear
□Applicable√NotapplicableReasonsforthedrasticchangeofcapitalizationrateofR&Dinvestmentanditsrationalityexplanation
□Applicable√Notapplicable
(5)CashFlow
InRMB
| Items | 2021 | 2020 | Increase/Decrease(%) |
| Subtotalofcashinflowreceivedfromoperationactivities | 2,433,304,906.36 | 2,067,129,172.79 | 17.71% |
| Subtotalofcashoutflowreceivedfromoperationactivities | 2,437,741,886.71 | 2,065,198,240.03 | 18.04% |
| Netcashflowarisingfromoperatingactivities | -4,436,980.35 | 1,930,932.76 | -329.78% |
| Subtotalofcashinflowreceivedfrominvestingactivities | 1,154,092,748.71 | 3,253,008,414.70 | -64.52% |
| Subtotalofcashoutflowforinvestmentactivities | 1,412,622,193.08 | 3,572,079,379.14 | -60.45% |
| Netcashflowarisingfrominvestmentactivities | -258,529,444.37 | -319,070,964.44 | 18.97% |
| Subtotalcashinflowreceivedfromfinancingactivities | 339,219,000.00 | 342,660,000.00 | -1.00% |
| Subtotalcashoutflowforfinancingactivities | 50,944,964.13 | 12,855,758.88 | 296.28% |
| Netcashflowarisingfromfinancingactivities | 288,274,035.87 | 329,804,241.12 | -12.59% |
| Netincreaseincashandcashequivalents | 24,071,196.77 | 9,690,648.77 | 148.40% |
Notestotheyear-on-yearchangeoftherelevantdata
□Applicable√NotapplicableReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
√Applicable□Notapplicable
Duringthereportingperiod,thenetcashflowfromtheCompany'soperatingactivitieswas-4,436,980.35yuan.Thenetprofitintheconsolidatedstatementofthecompanywas75,114,666.20yuan,withsignificantdifferencebetweenthetwo,mainlyduetouseofcreditsalesintheformofsales.ThedifferenceDuringthe
reportingperiodbetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesandthenetprofitoftheconsolidatedstatementisdetailedinSection10,VII,58(1)"SupplementaryInformationonCashFlowStatement"ofthisreport.V.AnalysisofNon-coreBusiness
√Applicable□Notapplicable
InRMB
| Amount | Proportionintotalprofit | Explanationofcause | Sustainable(yesorno) | |
| Investmentincome | 22,663,013.06 | 26.28% | Obtainingdividends，contractfeesandMoneyfundinvestmentincome,etc. | Havethesustainability |
| Gainsandlossesonchangesinfairvalue | 2,150,943.40 | 2.49% | Mainlyduetothechangesinthenon-currentfinancialassetsandStructuraldepositvalue | Havethesustainability |
| Impairmentofassets | -83,508,720.33 | -96.84% | Mainlyfromtheprovisionofinventorydepreciationloss. | Havethesustainability |
| Non-operatingincome | 21,285,786.64 | 24.68% | Mainlyinsuranceclaims. | Notsustainable. |
| Non-operatingexpense | 1,686,263.35 | 1.96% | Mainlyduetothelossofnon-currentassetsbeingdestroyedandscrapped. | Notsustainable. |
| Otherincome | 19,643,379.33 | 22.78% | Mainlyforgovernmentsubsidies. | Havethesustainability |
VI.ConditionofAssetandLiabilities
(1)ConditionofAssetCausingSignificantChange
InRMB
| Endof2021 | Endof2020 | Proportionincrease/decrease | Notestothesignificantchange | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfund | 302,472,828.60 | 5.50% | 279,087,236.95 | 5.62% | -0.12% | |
| Accountsreceivable | 479,998,708.57 | 8.73% | 547,310,217.90 | 11.01% | -2.28% | |
| Inventories | 667,461,447.03 | 12.14% | 480,847,581.44 | 9.68% | 2.46% | |
| Investmentrealestate | 106,217,779.76 | 1.93% | 110,572,471.92 | 2.23% | -0.30% | |
| Long-termequityinvestment | 133,022,325.77 | 2.42% | 147,929,137.23 | 2.98% | -0.56% | |
| Fixedassets | 2,424,741,252.86 | 44.11% | 790,183,905.38 | 15.90% | 28.21% | MainlyduetothetransferoftheLine7project. |
| Constructioninprocess | 71,482,031.08 | 1.30% | 1,301,750,141.12 | 26.19% | -24.89% | MainlyduetothetransferoftheLine7project. |
| Userightassets | 9,221,189.37 | 0.17% | 0.17% | |||
| Short-termborrowing | 37,575,113.83 | 0.68% | 0.68% | |||
| Contractliabilities | 68,955.21 | 0.00% | 279,631.27 | 0.01% | -0.01% | ThiswasmainlyduetotheincreaseinloansborrowedfortheLine7projectduringtheyear. |
| Long-termborrowing | 683,016,243.25 | 12.43% | 343,100,174.35 | 6.90% | 5.53% | |
| Leaseliabilities | 4,243,855.71 | 0.08% | 0.08% | |||
| Transactionfinancialassets | 586,540,735.16 | 10.67% | 684,617,260.06 | 13.78% | -3.11% | |
| Otherreceivables | 140,185,750.40 | 2.55% | 5,265,002.71 | 0.11% | 2.44% | Mainlyduetothepaymentofcustomsdepositsfornewlyimportedrawmaterials. |
Overseasassetsaccountforarelativelyhighproportion.
□Applicable√Notapplicable
(2)AssetandLiabilitiesMeasuredbyFairValue
√Applicable□Notapplicable
InRMB
| Items | Openingamount | Gain/Lossonfairvaluechangeinthereportingperiod | Cumulativefairvaluechangerecordedintoequity | Impairmentprovisionsinthereportingperiod | Purchasedamountinthereportingperiod | Soldamountinthereportingperiod | Otherchanges | Closingamount |
| Financialassets | ||||||||
| 1.Financialassetsmeasuredatfairvaluethrough | 684,617,260.06 | 712,000,000.00 | 810,076,524.90 | 586,540,735.16 |
| profitorloss(excludingderivativefinancialassets) | ||||||||
| 4．OtherequityInstrumentInvestment | 190,607,427.54 | -4,573,597.82 | 186,033,829.72 | |||||
| Subtotaloffinancialassets | 875,224,687.60 | -4,573,597.82 | 0.00 | 712,000,000.00 | 810,076,524.90 | 0.00 | 772,574,564.88 | |
| non-currentfinancialassets | 30,650,943.40 | 2,150,943.40 | 2,150,943.40 | 30,650,943.40 | ||||
| Total | 905,875,631.00 | 2,150,943.40 | -4,573,597.82 | 0.00 | 712,000,000.00 | 812,227,468.30 | 0.00 | 803,225,508.28 |
| FinancialLiability | 0.00 | 0.00 |
Otherchanges
NoneDidgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?
□Yes√No
(3)RestrictedassetrightsasoftheendofthisReportingPeriod
SubsidiarySAPOPhotoelectricusespartofitsself-ownedpropertiestoapplyforamortgageloanfromasyndicatewithBankofCommunicationsCo.,Ltd.ShenzhenBranchastheleadbank,andthecompanyprovidesguaranteesforthemortgageloan.Fordetails,pleaserefertohttp://www.cninfo.com.cn.cninfo.com.cn)"AnnouncementontheCompany'sApplicationforBankMortgageGuaranteesforSubsidiaries"(No.:2020-19),"AnnouncementontheProgressoftheCompanyProvidingGuaranteesforSubsidiaries"(No.:2020-46)VII.Investmentsituation
(1)General
□Applicable√Notapplicable
(2)ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
□Applicable√Notapplicable
(3)SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
□Applicable√Notapplicable
(4)InvestmentofFinancialAsset
1.Securitiesinvestment
□Applicable√Notapplicable
2.InvestmentinDerivatives
□Applicable√NotapplicableTheCompanyhadnoinvestmentinderivativesinthereportingperiod.
(5)Applicationoftheraisedcapital
√Applicable□Notapplicable
1.Generalapplicationoftheraisedfunds
√Applicable□Notapplicable
InRMB
| Yearofraising | Wayofraising | Totalraisedcapital | Totalamountoftheraisedfundusedattheperiod | TotalamountofRaisedFunds | Amountofraisedcapitalofwhichthepurposewaschangedinthereportperiod | Accumulativeamountofraisedcapitalofwhichthepurposehasbeenchanged | Proportionofraisedcapitalofwhichthepurposehasbeenchanged(%) | TotalAmountoftheUnusedRaisedFundattheCurrentPeriod | UseandWhereasoutsoftheUnusedRaisedFund | AmountoftheRaisedFundwithover2Years’Idling |
| 2013 | Non-publicissue | 96,175.1 | 0.26 | 76,261.7 | 0 | 30,927.22 | 32.16% | 1,228.01 | Transfertothecompany'sownaccountforpermanentreplenishmentof |
| workingcapital | ||||||||||
| Total | -- | 96,175.1 | 0.26 | 76,261.7 | 0 | 30,927.22 | 32.16% | 1,228.01 | -- | 0 |
| Notetouseofraisedcapital | ||||||||||
| Duringthereportingperiod,theCompanyactuallyusedtheraisedfundsof2,600yuan,andtheaccumulateduseofraisedfundswas762.617millionyuan,ofwhich100yuanofraisedfundswasactuallyusedforthesecondphaseoftheline6projectofTFT-LCDpolarizer-andtheaccumulateduseofraisedfundsforitwas352.6635millionyuan;theactualuseoftheraisedfundsforthe7thlineprojectwas2,500yuan,withtheaccumulateduseofraisedfundsforitwas409.9535millionyuan. | ||||||||||
2.Promisedprojectsofraisedcapital
√Applicable□Notapplicable
InRMB10,000
| Committedinvestmentprojectsandinvestment | Projectchanged(includingpartialchange) | Totalraisedcapitalinvestedascommitted | Totalinvestmentafteradjustment(1) | Amountinvestedinthereportingperiod | Accumulatedamountinvestedattheendofthereportingperiod(2) | Investmentprogressendedthereportingperiod(%)(3)=(2)(1) | Datewhentheprojecthasreachedthepredictedapplicablestatus | Benefitrealizedinthereportingperiod | Hasthepredictedresultberealized | Hasanymaterialchangetakenplaceinfeasibility |
| Committedinvestmentprojects | ||||||||||
| Phase-IIprojectofpolarizersheetforTFT-LCD(Line6) | Yes | 96,175.1 | 70,034 | 0.01 | 35,266.35 | 50.36% | June7,2018 | 6,337.63 | No | Yes |
| Theutilizationofthesurplusraisedfunds（Line7project） | No | 0.25 | 40,995.35 | July11,2021 | -10,718.52 | Notapplicable | No | |||
| Subtotalofcommittedinvestmentprojects | -- | 96,175.1 | 70,034 | 0.26 | 76,261.7 | -- | -- | -4,380.89 | -- | -- |
| Subtotalofcommittedinvestment | ||||||||||
| None | ||||||||||
| Total | -- | 96,175.1 | 70,034 | 0.26 | 76,261.7 | -- | -- | -4,380.89 | -- | -- |
| Situationaboutnotcominguptoschemedprogressorexpectedrevenueandthereason(inspecificproject) | Notapplicable |
| Notestosignificantchangeinfeasibilityoftheproject | Accordingtothelatestsituationoftheindustrydevelopment,theoriginalsecondphaseconstructionschemeoftheTFT-LCDpolarizerwasoptimized,andthenaccordingtotheresultsconcludedbytheexperts,thecompanydecidedtocontinuetopromotetheconstructionoftheNo.6lineproject.Atthesametime,inthelightoftherewasalargefundsgapbetweentheactualraisedcapitalandtheplannedraisedcapitalforthesecondphaseproject,thenbycomprehensiveconsiderationsofthecompany’sproductionlinescaleandtheoperationpressure,thecompanydecidedtoterminatetheprojectofNo.7line,andthecorrespondingamountoffundsof309.2722millionyuan(includinginterests)forNo.7lineprojectshallbechangedforpermanentlysupplementingtheliquidity.TheProposalonAlterationoftheUseofPartoftheRaisedCapitalfortheSecondPhaseProjectofTFT-LCDPolarizerwasexaminedandapprovedinthe2015annualshareholdermeetingonApril21,2016.. |
| Amount,applicationandapplicationprogressoftheuncookedproceeds | Notappli8cable |
| Aboutthechangeoftheimplementationsiteoftheprojectsinvestedwiththeproceeds | Notappli8cable |
| Adjustmentoftheimplementationwayofinvestmentfundedbyraisedcapital | Notappli8cable |
| Abouttheinitialinvestmentintheprojectsplannedtobeinvestedwiththeproceedsandthereplacement | Notappli8cable |
| Usingtheidleproceedstosupplementtheworkingcapitalontemporarybasis | Notappli8cable |
| Balanceoftheproceedsinprocess | Applicable |
| 1.OnAugust31,2018,inthecompany'ssecondextraordinaryshareholders’meetingof2018,the |
| ofprojectimplementationandthecause | “ProposalontheUseofSurplusRaisedFundstoInvestintheLarge-scaleTVPolarizerIndustrializationProject(Line7)”wasreviewedandapproved,agreeingtocontinuetodeposit134.7172millionyuanintheoriginalspecialaccountofraisedfundsforthefollow-upexpenditureofline6projectandtheremainingsurplusraisedfundsshallbeusedfortheinvestmentofline7project,withtheamountshallbesubjecttotheinterestsettlementofthebankonthedaythefundsaretransferredout.Accordingtotheusearrangementforthesurplusraisedfunds,onNovember12,2018,theCompanytransferredthesurplusraisedfundsfortheNo.6lineprojectby405.8311millionyuantothenewlyopenedspecialaccountofraisedfundsforprojectofLine7,whichwillbeusedfortheultra-large-sizeTVpolarizerindustrializationproject(Line7),andasofNovember12,2018,thebalanceofthespecialaccountforraisedfundsofline6was80.3569millionyuan.Thereasonsforthesurplusoftheraisedfundswereasfollows:1.theinterestincomeandtheinvestmentincomeofthebankwealthmanagementproductsweregeneratedduringthedepositoftheraisedfunds;2.tograsptheopportunityoftherapiddevelopmentofthedomesticpolarizerindustryandacceleratetheconstructionoftheNo.6lineproject,theCompanyhadinadvanceinvestedsomefundsinthesecondphaseofthepolarizerprojectofLine6,andinviewofthefactthatthefundsraisedatthetimewereinplace,astherewasalargefundinggapbetweentheactualraisedfundsandtheplannedandtheoriginalinvestmentprojectneededtobere-demonstrated,theCompanydidnotreplacetheadvanceinvestmentintimeaftertheraisedfundswerereceived;3.thesecondphaseofthepolarizerprojectwassubsidizedbytheNationalDevelopmentandReformCommissionandtheShenzhenMunicipalGovernmentaftertheprojectwasestablished,whichhadbeenallputintotheprojectconstructionaccordingtotherequirements,therebyreducedtheinvestmentoftheraisedfundsaccordingly;4.toensuretheoriginalinvestmentprojecttohaveagoodmarketprospectandprofitability,theCompanyoptimizedtheconstructionplanoftheoriginalraised-fundsinvestmentprojectofNo.6line,anditadoptedthecostcontrol,optimizedtheproductionprocessandtookothermeasurestoachievereasonablesavingsunderthepremiseofensuringtheoriginaldesignandtechnicalconditionsoftheproject.2.OnMarch10,2021,theCompanyheldthesecondmeetingoftheEighthBoardofDirectors,whichdeliberatedandapprovedtheProposalonthePermanentReplenishmentofWorkingCapitalwithSurplusRaisedFunds.InviewofthecompletionofLine6ofthephaseIIprojectofpolarizerforTFT-LCD,thesurplusraisedfundsofLine6ofRMB12,280,100(includingtheaccumulatednetamountofbankdepositinterestminusbankfeesandRMB7,307,100ofequipmentbalance)willbeusedtopermanentlyreplenishworkingcapitalfordailyproductionandoperationuse.Thereasonsforthesurplusoftheraisedfundsareasfollows:1.DuringtheimplementationofLine6project,theCompanystrictlyfollowedtherelevantregulationsontheuseofraisedfunds,carefullyusedtheraisedfunds,strengthenedthecostcontrol,supervisionandmanagementduringtheprojectconstructionandinitialoperationonthepremiseofensuringthequalityofraisedinvestmentprojects,reasonablyreducedtheprojectinvestmentamountandinitialworkingcapital,andsavedtheexpenditureofraisedfunds;Duringtheimplementationoftheproject,idleraisedfundsgeneratedcertaininterestincome. |
| Aboutapplicationandstatusoftheproceedsunused | ByDecember31,2021,theLine6projecthadbeenclosed,andthesurplusraisedfundsofspecialaccountofRMB12,280,100wastransferredtotheCompany'sownaccountforpermanentreplenishmentofworkingcapital.OnMarch29,2021,thebankcancellationprocedureforspecialaccountofLine6wascompleted.AlltheraisedfundsinthespecialaccountofLine7projecthavebeenusedasrequired,andthebankcancellationproceduresforspecialaccountofLine7werecompletedon |
| March29,2021. | |
| Problemsexistinginapplicationoftheproceedsandtheinformationdisclosureorotherissues | ByDecember31,2021,thephaseIIofLine6projecthadaccumulatedinvestmentofRMB699,544,200,accountingfor99.89%ofthechangedtotalinvestmentofRMB700,340,000,ofwhichtheactuallypaidinvestmentwasRMB689,650,000(RMB352,663,500ofraisedfundsandRMB336,986,500ofself-ownedfundsandgovernmentfunds).ByDecember31,2021,theaccumulativeinvestmentcontractamountofLine7projectwasRMB2,091,244,100,andtheactualpaymentwasRMB2,017,518,400(RMB409,953,500ofraisedfunds,RMB1,607,564,900ofself-ownedfundsandgovernmentfunds). |
3.Changesofraisedfundsprojects
□Applicable√NotapplicableNoneVIII.Salesofmajorassetsandequity
(1)Salesofmajorassets
□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.
(2)Salesofmajorequity
□Applicable√NotapplicableIX.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies
√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany
InRMB
| Companyname | Type | Mainbusiness | Registeredcapital | Totalassets | Netassets | Turnover | Operatingprofit | NetProfit |
| ShenzhenLisiIndustrialCo.,Ltd. | Subsidiary | DomesticTrade,Propertymanagement | 2,360,000.00 | 35,749,173.47 | 28,821,110.35 | 9,073,086.79 | 2,255,295.59 | 2,356,126.60 |
| ShenzhenHuaqiangHotel | Subsidiary | Accommodation,businesscenter; | 10,005,300.00 | 22,050,733.79 | 20,368,204.89 | 6,926,914.89 | 298,548.24 | 285,092.35 |
| ShenzhenShenfangRealEstateManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,600,400.00 | 11,649,993.83 | 6,951,045.03 | 21,854,935.99 | 3,368,024.11 | 2,518,397.08 |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Subsidiary | Productionoffullyelectronicjacquardknittingwholeshape | 13,000,000.00 | 46,067,490.40 | 18,072,122.93 | 55,169,650.79 | 630,605.93 | 545,674.66 |
| SAPOPhotoelectric | Subsidiary | Productionandsalesofpolarizer | 583,333,333.00 | 4,237,652,544.02 | 2,858,788,617.26 | 2,128,258,070.01 | 38,497,930.46 | 40,484,325.87 |
| ShenzhenTextileImport&ExportCo.,Ltd. | Subsidiary | Operatingimportandexportbusiness | 5,000,000.00 | 0.00 | 0.00 | 0.00 | -150,452.37 | 12,833,113.61 |
| Shengtou（HK）Co.,Ltd. | Subsidiary | Salesofpolarizer | HKD10,000 | 6,009,898.07 | 5,984,077.83 | 0.00 | -155,168.20 | 118,818.86 |
| ShenzhenShenfangSungangRealEstateManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,000,000 | 10,248,835.38 | 8,274,062.49 | 4,297,226.09 | 2,387,107.59 | 2,222,849.16 |
Subsidiariesobtainedordisposedinthereportingperiod
√Applicable□Notapplicable
| Companyname | Meansofacquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactonoverallproduction,operationandperformance |
| ShenzhenTextileImport&ExportCo.,Ltd. | Withdraw | Thepurposeofthiscancellationofthesubsidiaryistoimprovetheoperationalefficiencyofstate-ownedassets,andtheimpactonthecurrentprofitandlossofthecompanyis7.6999million. |
Note
ThefinancialdataofSAPOPhotoelectricmentionedinthetableabovearethefinancialstatementsdataofits
parentcompanyandnon-consolidatedstatementsdata.ShenzhenTextileImport&ExportCo.,Ltd.,Shengtou（HK）
Co.,Ltd.areSAPOPhotoelectric.FordetailsofthefluctuationofsubsidiarySAPOPhotoelectric'sperformanceandthereasonsforthechange,pleasereferto"IV.Analysisofmainbusiness"inSectionIIIManagementDiscussionandAnalysis.X.StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableXI.ProspectforfuturedevelopmentoftheCompany
1.TheDevelopmentTrendoftheIndustry
(1)IndustrycompetitionpatternPolarizerindustryisahighlyconcentratedindustry.Currently,thereareabout10majorpolarizermanufacturersworldwide,mainlyinJapan,mainlandChina,SouthKoreaandTaiwanProvinceofChina.ThemainmarketshareisoccupiedbyJapaneseandChinesemainlandmanufacturers,whiletheoverallproductioncapacityofSouthKoreaandTaiwanProvinceislow.
(2)IndustrytrendsInrecentyears,Chinesemainland'snewdisplayindustryhasalwaysmaintainedpositivegrowth,itsoverallgrowthratehasexceededtheglobalindustrialgrowthrateformanyyears,itsindustrialstructurehasbeenconstantlyimproved,anditsmarketcompetitivenesshasbeensteadilyimproved.RelyingonseveralTFT-LCDpanelproductionlines,theLCDpanelindustryinmainlandChinaranksfirstintheworldintermsofrevenueandshippingarea.ComparedwiththerapiddevelopmentofnewdisplayindustryinmainlandChina,overseasmanufacturerschoosetograduallyshrinkandwithdraw,forexample,SamsungDisplaysellsitsLCDpanelproductionlineandLGChemsellsitsLCDpolarizerbusiness.Withthewithdrawalofforeignmanufacturers,high-qualityindustrialassetsaretransferredtomainlandChina,andthefocusofthenewdisplayindustryisacceleratingtoconcentrateinmainlandChina.AccordingtothelatestresearchofOmdia,itisestimatedthatfrom2023,thecapacityareashareofChinesemainlandmanufacturerswillreachmorethan70%oftheglobaltotal.
Affectedbythis,themarketdemandforpolarizersinChinesemainlandhasincreasedrapidlyinrecentyears.AccordingtoOmdiaresearch,drivenbythedevelopmentofdisplaypanelindustry,theglobaltotaldemandareaforpolarizersisexpectedtoincreasefrom574millionsquaremetersin2020to669millionsquaremetersin2025,andthedomesticmarketdemandareaforpolarizerswillreach480millionsquaremetersby2025,accountingformorethan70%oftheglobaltotaldemand.Itisagooddevelopmentopportunityformainlandpolarizermanufacturerswithmarketadvantages,policyadvantagesandgeographicaladvantages.
2.Companydevelopmentstrategy
Relyingontheexistingbusinessfoundation,theCompanywillactivelyplanforbusinessinnovationandupgradingthroughtwopathsoftappingthepotentialofstockbusinessandincreasingbusinessinvestmentandempowerment,vigorouslyimplementthe"polarizer+"strategy,promotethecorebusinessofpolarizerstobecomebetterandstronger,andmeanwhile,choosetherightopportunitytoextendtoupstreamrawmaterials,promotethedevelopmentofpolarizerintegrationbusiness,activelyexpandotheradvancednewmaterialfields,andstrivetobuildaworld-classnewmaterialtechnologygroup.
3.Possiblerisks
(1)Macroeconomicrisk
AstheCOVID-19isstillspreadingallovertheworld,therearestillweaklinksinthepreventionandcontrolofdomesticpandemic,thefoundationofeconomicrecoveryisstillnotsolid,theconsumptionofresidentsisstillrestricted,andthedomesticdemandeconomywillcontinuetobeunderpressure.Asamemberoftheupstreammanufacturersinthemonitormarket,theCompanycan'truleouttheriskthatunpredictablemacroeconomicfluctuationsmayaffecttheCompany'sperformance.
(2)MarketriskThepolarizerindustryisanimportantpartofChina'sfuturemanufacturingdevelopment.Thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologiesarechangingquickly.However,thedomesticsubstitutionprocessofthepolarizerindustryisunderway.Withthegradualmassproductionofthe10.5generationline,thesuper-largesizemarketwillusherinnewchanges.IftheCompany'stechnologyandproductscan'trespondtotheneedsofapplicationfieldsintime,thewidepolarizerproductsandapplicationsfallshortofexpectations,orthemarketcompetitionintensifies,whichleadstothepricereductionofdisplayproductsandtheupwardtransmissionofthepricereductionpressuretothepolarizermarket,itwillhaveanadverseimpactontheCompany.
(3)RiskofrawmaterialsThereisahighbarrierinthecoreproductiontechnologyofupstreammaterialsofpolarizers,whichisbasicallymonopolizedbyforeignmanufacturers,withlowlocalizationrate.Currently,thekeyrawmaterialsformanufacturingpolarizers,suchasPVAfilmandTACfilm,arebasicallymonopolizedbyJapaneseenterprises,andtheproductionlineandproductiontechnologyofupstreamsupportingrawmaterialsareconstrainedbyJapan,whilethepricesofmajorfilmmaterialsareaffectedbythesupplier'scapacity,marketdemandandyenexchangerate,whichaffectstheunitcostoftheCompany'sproducts.
(4)Workprioritiesin2022
1.ContinuetoimprovetheprofitabilityofthemainbusinessVigorouslyimplementthefourmeasuresof"capacityscale,productdifferentiation,innovationecology,andleanmanagement".First,furtherpromotetheoversizedproductioncapacityoftheCompany'spolarizerbusinessandimprovetheoverallproductioncapacity;Second,promoteproductdifferentiation,strengthenthetechnicalresearchonOLEDpolarizers,vehiclepolarizersandotherproducts,andcontinuouslyoptimizetheproductstructure;Third,promotetheecologicalinnovationandbuildastandardizedandefficientmarket-orientedR&Dmanagementsystem;Fourth,promoteleanmanagement,improveproductqualityandproductionefficiency,andadoptdiversifiedmeasurestoreducecostsandincreaseefficiency.
2.Promotetheramp-upmassproductionprocessofLine7projectEnsurethemaximumcontinuousproductionofLine7project,makeeveryefforttoshortentherampuptimeoftheproductionline,andpromotetheproductionwithfullactivationofproductionline.First,strengthenmarketexpansionandobtainordersforlarge-sizeproducts;Second,continuouslyimprovespeedandyield;Third,ensurethesupplyofrawmaterials.
3.EnsurethesteadygrowthofpropertybusinessandprovideeffectivesupportforthedevelopmentoftheCompany
Propertymanagemententerprisesshallcloselyfollowthechangesofthesurroundingbusinesstypes,operatearoundtherentalrateandcapitalrecoveryrate,overcometheproblemsofoldproperty,poorconditionsandbackwardfacilities,continuetotappotentialandincreaseefficiency,improveservicelevelandenhanceoperating
efficiency.
4.Carryoutrefinedmanagementinanall-roundway,andcreatearesource-efficiententerpriseDefinethemanagementgoaloftappingpotentialandincreasingefficiency,andfullyimplementrefinedmanagement.Forproduction,quality,inventory,salesandotheraspects,refinemanagementunits,improvemanagementmethods,achieverefinement,quantificationandstandardizationofmanagement,steadilyenhancetheCompany'smarketcompetitiveness,andcreatearesource-efficiententerprisewith"highefficiency,lowconsumptionandfinemanagement".
5.Furtherdeepenthemarket-orientedtalentmanagementmechanism
Reorganizetheechelonofreservetalentsforkeypositions,improvethemanagementmechanismofselection,trainingandassessmentofreservetalents,introducetalentsthroughmultiplechannels,traininmultipleways,conductmulti-directionalassessment,innovatethetalentmanagementmechanism,buildaplatformfortalentselectionandemployment,andprovidesoundhumanresourcessupportforthesustainabledevelopmentoftheGroup.
6.Wellensureepidemicpreventionandcontrolandworksafety,andmaintaintheharmonyandstabilityoftheenterprise
First,enhanceemployees'awarenessofhealthprotection,insistonfullyensuringepidemicpreventionanddynamicdatainkeyplaces,andwellensurenormalizedpreventionandcontrolofCOVID-19toensureneglectingneitherepidemicpreventionnorproduction.Second,strengthentheboundarylineawareness,firmlyestablishtheconceptofsafedevelopment,solidlycarryoutsafetymanagement,speedupthereformandinnovationofsafetysupervision,implementthesafetyresponsibilitysystemtotheletter,deepentheinvestigationandmanagementofhiddendangers,continuouslyimprovetheCompany'sworksafetymanagementlevel,andbuildastrongsafetymanagementfoundation.
7.StrengthenpartybuildingandinnovateenterprisecultureGuidedbyXiJinping'sthoughtofsocialismwithChinesecharacteristicsinthenewera,fullyimplementthespiritoftheSixthPlenarySessionoftheNineteenthCPCCentralCommitteeandthe20thCPCNationalCongress,continuetocarryoutin-depthstudyofpartyhistory,adheretotheguidanceofhigh-qualitypartybuildingtoguaranteehigh-qualitydevelopmentunswervingly,andfurtherpushforwardthe"six-degreepartybuilding"workinadown-to-earthmannertoprotecttheCompany'ssustainedandhealthydevelopment.XII.Particularsaboutresearches,visitsandinterviewsreceivedinthisreportingperiod
√Applicable□Notapplicable
| Receptiontime | Receptionplace | Thewayofreception | Objecttypeofreception | Receptionperson | Themaincontentofthediscussionandtheinformationprovided | Indexofthebasicsituationofthesurvey |
| March18,2021 | Meetingroomonthesixthfloorofthe | Fieldresearch | Organization | GreatWallsecurities | Themainreasonsforthequarter-on-qua | Fordetails,pleaserefertothe"000045ShenzhenTextileA |
| Company | rterincreaseintheCompany'sgrossprofitmargininthefirstthreequartersandthepriceofpolarizers,thereleaseofproductioncapacityofLine7,etc. | ResearchActivityInformation20210319"(No.2021-01)bythecompanyhttp://www.cninfo.com.cn. | ||||
| March25,2021 | MeetingroomonthesixthflooroftheCompany | Other | Other | Themajorityofinvestors | TheCompany'sprovisionforinventorydepreciation,theCompany'spolarizerbusinessgrossprofitmargin,theCompany'soperatingconditionsinthefirstquarter,themainreasonsfortheincreaseinthecostofpolarizermaterials,andtheimpactoftheepidemicontheCompany'sperformanceduetothereductionofrentaffectedbyepidemic. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210325"(No.2021-02)bythecompanyhttp://www.cninfo.com.cn. |
| Aptil2,2021 | Meetingroomonthesixthfloorofthe | Fieldresearch | Organization | GreatWallsecurities | Assetimpairmentinformationin | Fordetails,pleaserefertothe"000045ShenzhenTextileA |
| Company | 2020and2021,reasonsforlowergrossprofitmarginsthanothercompanies,andtheprogressofLine7production,etc. | ResearchActivityInformation20210406"(No.2021-03)bythecompanyhttp://www.cninfo.com.cn. | ||||
| April8,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | FuhuaSecurities,SinolinkSecurities | TheCompany'sproductioncapacity,theproductionprogressofLine7,themainproductsproducedbyLine7,theCompany'sadvantagesinpolarizerproduction,andtheoverallsupplyanddemandofthepolarizerindustry. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210409"(No.2021-04)bythecompanyhttp://www.cninfo.com.cn. |
| July15,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | GreatWallsecurities | Thefuturedevelopmenttrendandpricetrendofthepolarizerindustry,whethertherewillbeexcessproductioncapacityinthepolarizerindustry,theCompany's | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210716"(No.2021-05)bythecompanyhttp://www.cninfo.com.cn. |
| measurestoreducecosts,thepriceofupstreamrawmaterials,theprogressofLine7,theprogressoftheCompany'semployeestockownershipplan,etc. | ||||||
| September1,2021 | MeetingroomonthesixthflooroftheCompany | Byphone | Organization | GreatWallsecurities,ChinaMerchantsFund,ChangshengFund,PenghuaFund,ShenwanFund,ChinaIntemationalFund,ChinaEverwinAssetandDachengFund. | TheCompany'soperationinthefirsthalfoftheyear,theimpactofpanelpricesonthepriceofpolarizers,whetherpolarizaerswillleadtoexcessproductioncapacity,thecurrentproductstructure,andthecustomersofLine7products. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210902"(No.2021-06)bythecompanyhttp://www.cninfo.com.cn. |
| September7,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | Cedarcapital,RongweiJiyeAssetManagement | TheCompany'spositioninganddevelopmentdirectioninthenextfewyears,theimpactofthedeclinein | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210908"(No.2021-07)bythecompanyhttp://www.cninfo.c |
| panelpricesonthetrendofpolarizerprices,thereasonsforthelowergrossprofitmargincomparedtoothermanufacturers,theCompany'sproductstructure,etc | om.cn. | |||||
| September17,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | FangzhengSecurities,XindaAoyinFund | ThesituationofLine7anditsmaincustomers,suppliersofupstreamrawmaterialsforpolarizers,reasonsfortheCompany'slowgrossprofitmargin,andtheCompany'splantochangeitsname. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210922"(No.2021-08)bythecompanyhttp://www.cninfo.com.cn. |
| September23,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | ChuangjinHexinFund | ThereasonswhytheCompany'sperformancehasincreasedsignificantlycomparedwithpreviousyears,thereasonswhytheCompany'sgrossprofitmarginislowerthanthatof | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210926"(No.2021-09)bythecompanyhttp://www.cninfo.com.cn. |
| comparablemanufacturers,themainfactorsthataffecttherelativehighpriceofpolarizers. | ||||||
| October27,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | GreatWallsecurities,YinhuaFund,XindaAoyinFund | TheCompany'smeasurestodealwiththedownwardrevisionofthepanelmarket,theCompany'smaincustomers,theCompany'sproductstructure,themainproductsofLine7,theprogressofLine7,etc. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation202101029"(No.2021-10)bythecompanyhttp://www.cninfo.com.cn. |
| November2,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | GreatWallsecurities,YiminFund,ZheshangSecurities,ChinaEverwinAsset,SinolinkSecurities,ShenwanAssetsManagement | Operatingconditionsinthethirdquarterof2021,theimpactofthepanelpricerevisionontheCompany'spolarizerprice,theramp-upprogressandyieldofLine7,andtheCompany'sdevelopmentplaninthefieldof | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211103"(No.2021-11)bythecompanyhttp://www.cninfo.com.cn. |
| polarizers. | ||||||
| November4,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | Cedarcapital | TheCompany'sfutureplanforthedevelopmentofthepolarizerbusiness,thespecificproductsoftheCompany'spolarizersforOLEDTV,theresearchanddevelopmentprogressofvehicleproducts,andtheCompany'scostreductionmeasures. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211104"(No.2021-12)bythecompanyhttp://www.cninfo.com.cn. |
| November23,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | Runyingda,ZhengruiHuadao | Suppliersofupstreamrawmaterials,measurestakenbytheCompanytoreducecosts,compositionofB-endcustomersandC-endcustomersofdownstreamproducts,etc. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211125"(No.2021-14)bythecompanyhttp://www.cninfo.com.cn. |
| November24,2021 | MeetingroomonthesixthflooroftheCompany | Fieldresearch | Organization | GuotaiJunan,LingzhanCapital | ThemainreasonsfortheimprovementoftheCompany'soperatingperformance, | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211125"(No.2021-15)bythe |
| theCompany'smaincustomersandproductstructure,themainmatchingpanelproductionlinesofLine7,therelationshipbetweenpanelpricesandpolarizerprices,etc. | companyhttp://www.cninfo.com.cn. |
IV.CorporateGovernanceI.GeneralsituationDuringthereportingperiod,theCompanyoperatedinstrictaccordancewiththerequirementsofrelevantlaws,regulationsandnormativedocuments,suchasSecuritiesLaw,CompanyLaw,GovernanceGuidelinesforListedCompanies,GuidelinesforSelf-disciplineSupervisionofListedCompaniesinShenzhenStockExchangeNo.1-StandardOperationofListedCompaniesonMainBoard,andstrengthenedriskmanagementandcontroltoensurethehealthyandstabledevelopmentoftheCompany.Atpresent,theCompanyiswithbasicallysoundgovernancesystems,standardizedoperation,andrefinedcorporategovernancestructure,whichmeetstherequirementsofthenormativedocumentsonthegovernanceoflistedcompaniesissuedbyChinaSecuritiesRegulatoryCommission.In2021,companyheldatotalof4generalmeetings,convenedgeneralmeetings,standardizedvotingprocedurestosafeguardtheeffectivenessandlegalityinstrictaccordancewiththeregulationsandrequirementsofCorporationLaw,ArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Companiesactivelyprotectedthevotingrightsofminorityinvestors,andgeneralmeetingswereconvenedintheformoflivenetworktoadequatelyassuresmallinvestorsoftheirrightstoexercise.In2021,theboardofdirectorsheld11meetings,andtheconveningandvotingprocedureswereallconductedinstrictaccordancewiththeArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Allthedirectorsperformeddirectors'duties,exercisedirectors’rights,attendedrelatedmeetingsandactivelyparticipatedinthetrainingandbecamefamiliarwithrelevantlawsandregulationswithserious,diligentandhonestattitudes.IndependentdirectorsindependentlyperformedtheirdutiesinstrictaccordancewithArticlesofCorporation,Theindependentdirectorsystemandotherrelevantlawsandregulations,expressedfullytheirindependentopinionsoncorporateoperation,decision-making,andimportantmatters,etc.Strategy,audit,remuneration,evaluation,nominationcommitteeswereestablishedunderboardofdirectors,allcommitteesfunctionedproperly,andperformeddutiessuchasinternalaudits,compensationassessment,nominationofseniormanagementpersonnel,andprovidedscientificandprofessionaladvisoryopinionsforboardofdirectors’decision-making.
In2021,theboardofsupervisorsheld9meetings.TheboardofsupervisorsstrictlyfollowedtherequirementsofArticlesofCorporationandRulesofprocedureoftheboardofsupervisorsandotherrelevantlawsandregulations,supervisedthelegalcomplianceofthedutiesperformedbycompany'sfinancialpersonnelanddirectors,managersandotherseniormanagementpersonnelintheaimofmaintainingthelegitimaterightsandinterestsofthecompanyanditsshareholders.Allthesupervisorsfulfilledtheirobligations,exercisedtheirrightsaccordingtothelaws.Theconveningandvotingproceduresoftheboardofsupervisorswerelegal,andtheresolutionswerelegalandvalid.Theestablishmentandimplementationofboardofsupervisorsplayedanactiveroleinimprovingcorporategovernancestructureandregulatingcorporateoperations.Moreover,theCompanycarriedoutthespecialworkBlueSkyActionaccordingtoNotificationonImplementingSpecialWorkwhereInvestorsProtectBlueSkyActionpublishedbyShenzhenSecuritiesBureautoenhancethequalityofinformationdisclosureasthekeypoint,tocontinuouslyperfectthecommunicationmechanismandtopromotethenormativedevelopmentoftheCompany.variousplatformsweremadefulluseof,suchastelephone,e-mail,website,especiallytheinteractiveplatformofinvestorsinShenzhenStockExchange,solvedquestionsbroughtbyinvestors,andcommunicatedwithmediumandsmallinvestorsinteractively,andensurealltheinvestorsobtainedequalopportunitiesforinformalaccess.Meanwhile,intheaimofimprovingthetransparencyoflistedcompanies,companyacceptedinvestors’on-siteinvestigationtohavecomprehensive
understandingsofthecompany'sbusinesssituationthroughface-to-facecommunicationwithmanagement,alsourgedthecompanyestablishedaresponsibilitytoreturnoninvestors,improvedandenhancedthecorporategovernancestandards.Meanwhile,theCompanycontinuedtoperfectthevotingmechanismforminorityinvestors.In2021,theminorityinvestors’votingwascountedseparatelyateachofthe4shareholder’smeetings,andwhoseresultwasdisclosedatthedecisionannouncementattheshareholder’smeeting,whichfullyguaranteedtheexecutionofpoweroftheminorityinvestorsIn2021,accordingtotheStateCouncil'sOpinionsonFurtherImprovingtheQualityofListedCompanies(GF[2020]No.14)andtheShenzhenSecuritiesRegulatoryBureau'sNoticeonPromotingListedCompaniesinJurisdictiontoImplementMainResponsibilities,ImproveGovernanceLevelandAchieveHighQualityDevelopment(SZJGSZi[2020]No.128),theCompanyactivelyformulatedself-inspectionworkplans,organizeddirectors,supervisorsandseniormanagementpersonneloftheCompanyandimportantsubsidiariestocarryoutspecialstudy,setupspecialworkinggroupstoimplementself-inspection,foundoutpotentialrisksandoutstandingproblemsthatrestrictthequalityimprovementoftheCompany,andformulatedfeasiblefollow-uprectificationplans.TheCompanyhasreportedtheSelf-inspectionReportandRectificationPlanonImplementingMainResponsibility,ImprovingGovernanceLevelandAchievingHigh-qualityDevelopmenttoShenzhenSecuritiesRegulatoryBureau,andwillpushforwardthequalityimprovementoflistedcompaniesaccordingtotheaboverectificationplan.
Doesthereexistanydifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC
□Yes√NoThereexistnodifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC.II.IndependenceandCompletenessinbusiness,personnel,assets,organizationandfinanceThecodeofconductofthecontrollingshareholdersofthecompanydidnotgobeyondthegeneralmeetingsdirectlyorindirectlytointerferewiththedecision-makingandbusinessactivities,thecompanyhadindependentandcompletebusinessandautonomousoperationcapacity,achieved“fivepointseparation”inrespectofpersonnel,financial,asset,agencies,business.III.Competitionsituationsoftheindustry
□Applicable√NotApplicableIV.AnnualGeneralMeetingandExtraordinaryShareholders’MeetingsintheReportingPeriod
1.AnnualGeneralMeeting
| Sessions | Typeofmeeting | Investorparticipationratio | MeetingDate | Disclosuredate | Disclosureindex |
| TheFirstprovisionalshareholders’ | Provisionalshareholders’Generalmeeting | 49.30% | February2,2021 | February3,2021 | http://www.cninfo.com.cn）Announcement |
| Generalmeetingof2021 | No.:2021-11 | ||||
| TheSecondprovisionalshareholders’Generalmeetingof2021 | Provisionalshareholders’Generalmeeting | 49.27% | February10,2021 | February10,2021 | http://www.cninfo.com.cn）AnnouncementNo.:2021-14 |
| 2020Shareholders’generalmeeting | AnnualShareholders’GeneralMeeting | 49.31% | April7,2021 | April8,2021 | http://www.cninfo.com.cn）AnnouncementNo.:2021-31 |
| TheThirdprovisionalshareholders’Generalmeetingof2021 | Provisionalshareholders’Generalmeeting | 49.46% | June9,2021 | June10,2021 | http://www.cninfo.com.cn）AnnouncementNo.:2021-40 |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.InformationaboutDirectors,SupervisorsandSeniorExecutives
(1)Basicsituation
| Name | Positions | Officestatus | Sex | Age | Startingdateoftenure | Expirydateoftenure | Sharesheldattheyear-begin(share) | Stockoptions | Numberofrestrictedsharesgranted(shares) | Thenumberofsharesheldinthecurrentperiod(shares) | Numberofsharesreducedinthecurrentperiod(shares) | Otherchanges(shares) | Numberofsharesheldattheendoftheperiod(shares) | Reasonsforincreaseordecreaseofshares |
| ZhangJian | Boardchairmann，Secretaryyofthepartycommittee | Inoffice | Female | 42 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| ZhuMeizhu | DeputySecretaryofthePartycommittee，Director,GeneralMang | Inoffice | Male | 57 | July9,2017 | February9,2024 | 133,500 | 0 | 110,250 | 0 | 40,500 | 0 | 93,000 |
| er | |||||||||||||
| NingMaozai | Director,DeputySecretaryofthePartycommittee | Inoffice | Male | 46 | December14,2017 | February9,2024 | 36,600 | 0 | 36,600 | 0 | 36,600 | 0 | 0 |
| YinKefei | Director | Inoffice | Male | 47 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| HeFei | Director,CFO | Inoffice | Male | 44 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SunMinghui | Director | Inoffice | Male | 40 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| HeZuowen | IndependentDirector | Inoffice | Male | 59 | July19,2017 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CaiYuanqing | IndependentDirector | Inoffice | Male | 52 | July19,2017 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| WangKai | IndependentDirector | Inoffice | Male | 38 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| MaYi | Chairmanofthesuper | Inoffice | Male | 55 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| visorycommittee,SecretaryoftheCommissionforDisciplineInspection | |||||||||||||
| YuanShuwen | Shareholders'Supervisor | Inoffice | Male | 41 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ZhanLumei | Employeesupervisor | Inoffice | Female | 52 | February10,2021 | February9,2024 | 16,800 | 0 | 16,800 | 0 | 16,800 | 0 | 0 |
| LeKunjiu | Senioradviser | Inoffice | Male | 58 | September24,2021 | February9,2024 | 36,600 | 0 | 36,600 | 0 | 36,600 | 0 | 0 |
| LiuHonglei | DeputyGM | Appointment | Male | 57 | July19,2017 | February9,2024 | 39,600 | 0 | 38,850 | 0 | 36,600 | 0 | 3,000 |
| GuanFei | DeputyGM | Inoffice | Male | 36 | September22,2021 | February9,2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| JiangPeng | Secretarytotheboardof | Inoffice | Female | 51 | January16,2015 | February9,2024 | 30,000 | 0 | 30,000 | 0 | 30,000 | 0 | 0 |
| directors | ||||||||||||||
| ZhuJun | Boardchairman | Dimission | Male | 58 | January16,2015 | February10,2021 | 41,100 | 0 | 41,100 | 0 | 41,100 | 0 | 0 | |
| HuangYu | Director | Dimission | Male | 47 | July19,2017 | February10,2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| WangChuan | Director | Dimission | Male | 49 | September1,2018 | February10,2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| ZhangXiaodong | Employeesupervisor | Dimission | Male | 46 | August9,2013 | February10,2021 | 5,300 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | -- | -- | -- | -- | -- | -- | 339,500 | 0 | 310,200 | 0 | 238,200 | 96,000 | -- |
Duringthereportingperiod,whetherthereisdismissalofdirectorsandsupervisorsanddecruitmentofseniormanagers
□Yes√NoChangesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
| Name | Positions | Types | Date | Reason |
| ZhuJun | Boardchairman | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires |
| HuangYu | Director | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires |
| WangChuan | Director | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires |
| ZhangXiaodong | Employeesupervisor | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires |
| ZhanLumei | Employeesupervisor | Elected | February10,2021 | TheformeremployeesupervisorLeftfortermexpiration |
| LeKunjiu | Senioradviser | Appointment | September22,2021 | Thetermofthedeputygeneralmanagerhasexpired,andheishiredasaseniorconsultanttocontinue |
(2)PostsholdingProfessionalbackground,workexperienceandmaindutiesintheCompanyofexistingdirectors,supervisorsandseniormanagement
1.Director
ZhangJian,female,borninJune1979,master'sdegree,memberoftheCommunistPartyofChina.ShehasservedasanofficeclerkofthemarketingdepartmentofShenzhenPostalSavingsandForeignExchangeReservesBureau,deputydirectoroftheFinanceDepartmentofShenzhenDevelopmentandReformCommission(formerlyShenzhenDevelopmentandReformBureau),SeniorStaffMember,PrincipalStaffMemberandDeputyDirectoroftheIndustrialCoordinationDepartmentofShenzhenDevelopmentandReformCommission,DeputyDirectoroftheEconomicSystemReformDepartmentofShenzhenDevelopmentandReformCommission,andPartyMemberandDeputyGeneralManagerofShenzhenKunpengEquityInvestmentManagementCo.,Ltd.SheiscurrentlyPartySecretaryandChairmanoftheCompany,andconcurrentlyservesasPartyCommitteeMember,DeputyGeneralManagerandSecretaryoftheBoardofDirectorsofShenzhenSEGGroupCo.,Ltd.,DirectorofShenzhenSEGCo.,Ltd.,ViceChairmanofShenzhenHuakongSEGCo.,Ltd.,ChairmanofShenzhenDamingElectronicsCo.,Ltd.,ChairmanofShenzhenSEGHigh-techInvestmentCo.,Ltd.andChairmanofSEG(HongKong)Co.,Ltd.,;HeiscurrentlythePartysecretaryandChairmanoftheCompany.
ZhuMeizhu,Male,BorninNovember1964,Masterdegree,Seniorengineer,onceservedsuccessivelyaschiefDeputygeneralManagerofEnterpriseManagementDeptoftheCompany,DirectorofR&DCenter,AssistantGeneralManagerandDeputyGeneralManager,HeservesasdirectorandGeneralManageroftheCompany,andBoardChairmanofSAPOPhotoelectricCo.,Ltd.
NingMaozai,male,borninJuly1975,bachelordegree,senioradministrationengineer,ChineseCommunistPartymember;hehasservedsuccessivelyastheofficeclerkofShenzhenGuomaoAutomobileIndustryCo.,Ltd,theclerk,principalstaffmember,associatedirectoranddirectorofparty-massofficeofShenzhenPropertyDevelopment(Group)Corp.andholdaconcurrentpostofdeputyhumanresourceDeputymanagerandmanager;AtpresentheholdsthepositionofcompanydirectorandthepartysecretaryoftheCompany.
YinKefei,male,borninJuly1974,masterdegree,engineer,memberoftheCommunistPartyofChina.HehasservedasTechnicianandDeputyDirectorofCustomerServiceCenterofPipelineGasBranchofShenzhenGasGroupCo.,Ltd.;DeputyDirector,DirectorofCivilServiceDepartmentandDirectorofGeneralOfficeofPipelineGasCustomerServiceBranchofShenzhenGasGroupCo.,Ltd.;DeputyGeneralManagerofShenzhenGasGroupCo.,Ltd.GanzhouShenranNaturalGasCo.,Ltd.;MemberofthePartyGroupandDeputyDirectoroftheState-ownedAssetsSupervisionandAdministrationCommissionofDongguanCity,GuangdongProvince,andconcurrentlytheViceChairmanofDongguanWaterInvestmentGroupCo.,Ltd.;DeputySecretary-GeneralofDongguanMunicipalGovernmentofGuangdongProvince,PartySecretaryandDirectorofDongguanMunicipalGovernmentLiaisonOfficeinBeijing,andconcurrentlyChairmanoftheBoardofSupervisorsofDongguanBiotechnologyIndustryDevelopmentCo.,Ltd.;DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofDongguanFinancialHoldingGroupCo.,Ltd.,concurrentlyDirectorofDongguanBankandDirectorofDongguanAssetManagementCompany;HeiscurrentlytheDeputyGeneralManagerofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.
HeFei,male,borninFebruary1978,master'sdegree,memberofCommunistPartyofChina,Chinesecertifiedpublicaccountant,accountant.HesuccessivelyservedasaccountantofthePlanningandFinanceDepartmentofShenzhenGasGroupCo.,Ltd.,accountantoftheFinanceDepartmentofShenzhenGasInvestmentCo.,Ltd.,
whichisaffiliatedtoShenzhenGasGroupCo.,Ltd.,andmanageroftheFinanceDepartmentofHubeiShengjieCleanEnergyCo.,Ltd.,whichisaffiliatedtoShenzhenGasInvestmentCo.,Ltd.;DirectorofGeneralFinanceDepartmentofShenzhenConvention&ExhibitionCenterManagementCo.,Ltd.;ViceDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisthecompanydirectorandchieffinancialofficerofthecompanyandSupervisorofSAPOPhotoelectricCo.,Ltd.
SunMinghui,male,borninSeptember1981,masterdegree,accountant,memberoftheCommunistPartyofChina.HehasservedasStaffMemberoftheFinanceDepartmentofShenzhenEnergyFinanceCo.,Ltd.andtheFinancialManagementDepartmentofShenzhenEnergyGroupCo.,Ltd.,FinanceManagementDirectoroftheFinancialBudgetDepartmentofShenzhenInvestmentHoldingsCo.,Ltd.,SeniorDirectoroftheFinanceDepartmentandtheBoardOffice,andDeputyDirectoroftheFinanceDepartment(SettlementCenter).HeiscurrentlytheDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.
HeZuowen,male,borninOctober1962,MBA,associateprofessorinaccountancy,chartedcertifiedaccountantandcertifiedtaxagentinsecuritiesandfuturesindustry.AtpresentheactsasapartnerofDaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)andsecretaryofPartyGeneralBranchofShenzhenBranch,meanwhileheholdsthepositionofchairmanofShenzhenTianyeCertifiedTaxAgentsLimitedCorporation,consultancyexpertofInternalControlStandardCommitteeoftheMinistryofTreasury,judgeofGuangdongSeniorAccountantEvaluationCommittee,memberofCPCShenzhenSocialOrganizationDisciplinaryExaminationCommittee,deputysecretary&secretaryofDisciplineInspectionCommissionofCPCShenzhenCPAIndustryBoard,directorofShenzhenCertifiedTaxAgentsAssociationandindependentdirectorofShenzhenJPTOPTO-ELECTRONICSCo.,Ltd.,IndependentdirectorofShenzhenYiruiBiologyCo.,Ltd.,theCompany'sindependentdirectors，IndependentdirectorofShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.,andIndependentDirectoroftheCompany.
CaiYuanqing,bornin1969,DoctorofLawsofHiroshimaUniversity,professorofLawSchoolofShenzhenUniversity,directorofCompanyLawResearchCenterandGSI(GraduateStudentInstructor);Meanwhile,heactsasanarbitratorofShenzhenArbitrationCommission,independentdirectorofShenzhenRongdaPhotosensitiveScience&TechnologyCo.,Ltd.,IndependentdirectorofShenzhenOufeiTechnologyCo.,Ltd.,IndependentdirectorofOgilvyMedicalSuppliesCo.,ltd.andindependentdirectorsoftheCompany.
WangKai,male,bornin1983,Ph.D.ofHuazhongUniversityofScienceandTechnology,MemberoftheCommunistPartyofChina,associateprofessorandresearcherofSouthernUniversityofScienceandTechnologyDepartmentofElectronicandElectricalEngineering,andOutstandingYoungManofGuangdongProvince.HehasservedasamemberoftheTechnicalCommitteeofBeijingBranchofSocietyforInformationDisplay(SID),amemberoftheNationalStandardizationTechnicalCommitteeofFlatPanelDisplayDevices,DeputyDirectoroftheKeyLaboratoryofEnergyConversionandStorageTechnologyoftheMinistryofEducation,andDeputyDirectoroftheKeyLaboratoryofQuantumDotAdvancedDisplayandLightinginGuangdongUniversities,andindependentdirectoroftheCompany.
2.SupervisorMaYi,male,borninAugust1966,bachelor'sdegree,memberofCommunistPartyofChina,assistanteconomist.HehassuccessivelyservedasacadreoftheautomobilemanufacturinganddistributionplantofHainanautomobiletransportationcorporation,directoroftheBusinessDepartment,assistanttothegeneralmanagerandmanageroftheTransportationDepartmentofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,operationdirectorofCoscoLogisticsGuangzhouAntaidaLogisticsCo.,Ltd.,generalmanagerofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,directorofPlanningandDevelopmentDepartment,directorassistant,chiefofFutianstation,deputysecretaryofthePartyCommittee,directorandgeneralmanagerofShenzhenhighwaypassengerandfreighttransportationservicecenter.Heisthe
currentchairmanoftheboardofsupervisorsandsecretaryofDisciplineInspectionCommitteeoftheCompany..
YuanShuwen,male,borninMay1980,master'sdegree.HehassuccessivelyservedaschiefofShigumanagementstationofHengshancountyruralmanagementbureau,financialdirectorofShenzhenFengchengIronWireProductsCo.,Ltd.,projectmanagerofShenzhenbranchofBDOAccountingFirmCo.,Ltd.,generalledgeraccountantofShenzhenZhenye(Group)Co.,Ltd.,directorofFinancialBudgetDepartmentandseniordirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisvicedirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.andsupervisoroftheCompany
ZhanLumei,female,borninJune1969,collegedegree,SeniorLaborRelationsCoordinator,SeniorCareerInstructor,memberoftheCommunistPartyofChina.ShehasservedastheAdministrativePersonnelDirectorofShenzhenHualangGarmentCo.,Ltd.,DirectorandManageroftheHumanResourcesDepartmentoftheCompany.Currently,sheisthevicechairmanoftheFederationofTradeUnions,DirectoroftheParty-massWorkDepartment,andChairmanoftheTradeUnionandtheEmployeeSupervisoroftheCompany.
3.SeniorExecutives
LeKunjiu,male,borninMay1963,bachelordegreeeconomistprofessionaltitleandCPCmember;hehasservedsuccessivelyastheloanofficerofthefinancedepartmentofZhejiangNingboInternationalTrustandInvestmentCorporation,deputydirectoranddirectorofthefinancedepartmentofCITICGroupCorporation,NingboBranch,manageroftheresearchdepartmentofHainanFudaoAssetManagementCo.,Ltd,assistantmanagerofShenzhenLeaguerVentureCapitalCo.,Ltd,vicepresident&chieffinancialofficerofShenzhenLeaguerDigitalTelevisionCo.,Ltd,chairman&generalmanagerofShenzhenOriscapeElectronicCo.,Ltd,vicepresidentofShenzhenInternationalTechnologyTransferCenter,TsinghuaUniversity,associatedirectoroftheindustrialfundspreparatoryofficeofShenzhenInvestmentHoldingsCo.,LtdandDeputygeneralmanagerofShentouEducation;AtpresentheactsasDeputyGeneralManageroftheCompany,andDirectorofSAPOPhotoelectricCo.,Ltd.HeisthecurrentaseniorconsultantoftheCompany..
LiuHonglei,male,borninMay1964,bachelordegreeandCPCmember,Seniorengineer,HehasservedTechnician,Workdirector,DeputydirectorofofficeofFirstfilmfactoryofMinistryofChemicalEngineering,DirectorofpersonnelEducationDeptofEducationDepartmentofChinaLekaiFilmGroup,hehasservedasthedeputygeneralmanagerandgeneralmanagerofSAPOPhotoelectricCo.,LtdfromJune2012toMay2013andtheheadoftheparty-massworkdepartmentandthemanagerofthebusinessmanagementdepartmentofShenzhenTextile(Holdings)Co.,Ltd;Atpresentheholdsthepositionofdeputygeneralmanagerofthecompany.HeisalsothesecretaryanddirectorofthepartybranchofShenzhenSAPOPhotoelectricTechnologyCo.,Ltd.
GuanFei,male,borninDecember1985,in-servicepostgraduatedegree,memberoftheCommunistPartyofChina,intermediateeconomist.HehasservedastheAccountManagerofAgriculturalBankofChinaShenzhenBranch,DeputyDirectorofSichuanSupervisionBureauofChinaBankingandInsuranceRegulatoryCommission,SeniorInvestmentManagerofSichuanIndustrialFundGroupandHeadofStrategicInvestmentDepartment(presiding),FirstGeneralManagerofSichuanInnovationandDevelopmentInvestmentManagementCo.,Ltd.,andDeputyGeneralManagerofShenzhenInfrastructureInvestmentFundManagementCo.,Ltd.HeiscurrentlytheDeputyGeneralManageroftheCompany.
JiangPeng,Female,borninOctober1970,BachelorDegree,memberofcommunistparty,ShehasservedasaClerkandDeputySectionChiefoftheofficeofShandongAquaticEnterpriseGroupCorporation,SectionChiefoftheOfficeoftheBoardofDirectorsofShandongZhongluOceanFisheryCo.,Ltd.,DeputyDirectorandSecuritiesAffairsRepresentative.servedasofficeroftheSecretaryOfficeofShandongFisheryGroupCo.,Ltd.,DeputyDirectoroftheSecretaryofficeandSecuritiesaffairsRepresentativeofShandongZhongluOceanic
FisheriesCo.,Ltd.,SecuritiesRepresentativeofHuafuHoldingCo.,Ltd.,SecuritiesaffairsrepresentativeandOfficeroftheSecretariatoftheBoardoftheCompany,nowservesasthesecretaryoftheBoardoftheCompanyOfficetakinginshareholdercompanies
√Applicable□Notapplicable
| Namesofthepersonsinoffice | Namesoftheshareholders | Titlesengagedintheshareholders | Sharingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromtheshareholder |
| YinKefei | ShenzhenInvestmentHoldingsCo.,Ltd. | DeputyGM | January11,2021 | Yes | |
| SunMinghui | ShenzhenInvestmentHoldingsCo.,Ltd. | DirectorofFinancialDept(Clearingcentre） | November11,2020 | Yes | |
| YuanShuwen | ShenzhenInvestmentHoldingsCo.,Ltd. | DeputyDirectorofdisciplineInspection&Supervision | September18,2017 | Yes |
Officestakeninotherorganizations
√Applicable□Notapplicable
| Nameofthepersonsinoffice | Nameofotherorganizations | Titlesengagedintheotherorganizations | Startingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromotherorganization |
| YinKefei | ShenzhenConventionandExhibitionCenterManagementCo.,Ltd | Director | April23,2021 | No | |
| YinKefei | ShenzhenEnvironmentalTechnologyGroupCo.,Ltd. | Director | April23,2021 | No | |
| Yinkefei | ShenzhenWuzhouGuestHouse | Director | June11,2021 | No | |
| YinKefei | ShenzhenNanyou（Group）Co.,Ltd. | Director,Vicepresident | August16,2021 | No | |
| SunMinghui | ChinaNanshanDevelopment(Group)Co.,Ltd. | Supervisor | October17,2017 | No | |
| SunMinghui | ShenzhenHighwayPassenger&Cargo | Supervisor | June16,2017 | No |
| TransportationServiceCenterCo.,Ltd. | |||||
| SunMinghui | CASTD | Supervisor | June27,2017 | No | |
| SunMinghui | ULTRARICHINTERNATIONALLIMITED | Director | November11,2020 | No | |
| SunMinghui | ShenzhenSpecialEconomicZoneRealEstate | Director | November11,2020 | No | |
| SunMinghui | SouthernAssetManagementCo.,Ltd. | Supervisor | November11,2020 | April28,2021 | No |
| SunMinghui | HubeiShentoukongInvestmentDevelopmentCo.,Ltd | Director | November11,2020 | No | |
| SunMinghui | ShenzhenShengangTechnologyInnovationCooperationZoneDevelopmentCo.,Ltd. | Director | October18,2021 | No | |
| YuanShuwen | ShenzhenTextile(Holdings)Co.,Ltd. | Supervisor | September27,2019 | No | |
| YuanShuwen | ShenzhenInternationalTenderingCo.,Ltd. | Supervisor | October22,2017 | June10,2020 | No |
Punishmentstothecurrentandleavingboarddirectors,supervisorsandseniormanagersduringthereportperiodbysecuritiesregulatorsintherecentthreeyears
□Applicable√Notapplicable
(3)Remunerationtodirectors,supervisorsandseniorexecutivesDecision-makingprocedures,basisfordeterminationandactualpaymentoftheremunerationtodirectors,supervisorsandseniorexecutivesInthereportperiod,Theremunerationofdirectorsandseniormanagementpaidbythecompanyisdeterminedby“DirectorCompensationManagementSystem”and“ExecutiveCompensationManagementandEvaluationSystem”,theremunerationofindependentdirectorsisdeterminedaspertheresolutionofshareholders’meeting,andtheremunerationofsupervisorspaidbythecompanyisdeterminedbytheirpositionheldinthecompany.Remunerationtodirectors,supervisorsandseniorexecutivesinthereportingperiod
InRMB10,000
| Name | Positions | Sex | Age | Officestatus | TotalremunerationreceivedfromtheCompany | Whethertogetpaidinthecompanyrelatedparty |
| ZhangJian | BoardChairman | Female | 42 | Inoffice | 60.15 | No |
| ZhuMeizhu | Director,GeneralManager | Male | 57 | InOffice | 140.29 | No |
| NingMaozai | Director,SecretaryofthePartycommittee | Male | 46 | InOffice | 127.16 | No |
| YinKefei | Director | Male | 47 | Inoffice | 0 | Yes |
| HeFei | Director,CFO | Male | 44 | InOffice | 111.15 | No |
| SunMinghui | Director | Male | 40 | InOffice | 0 | Yes |
| HeZuowen | IndependentDirector | Male | 59 | InOffice | 12 | No |
| CaiYuanqing | IndependentDirector | Male | 52 | InOffice | 12 | No |
| WangKai | IndependentDirector | Male | 38 | Inoffice | 12 | No |
| MaYi | Chairmanofthesupervisorycommittee,SecretaryoftheCommissionforDisciplineInspection | Male | 55 | InOffice | 100.62 | No |
| YuanShuwen | Shareholders'Supervisor | Male | 41 | InOffice | 0 | Yes |
| ZhanLumei | Employeesupervisor | Female | 52 | Inoffice | 57.69 | No |
| LeKunjiu | Senioradviser | Male | 58 | InOffice | 126.51 | No |
| LiuHonglei | DeputyGM | Male | 57 | InOffice | 169.43 | No |
| GuanFei | DeputyGM | Male | 36 | InOffice | 19.52 | No |
| JiangPeng | Secretarytotheboardofdirectors | Female | 51 | Inoffice | 102.81 | No |
| ZhuJun | Boardchairman | Male | 58 | Dimission | 61.2 | No |
| ZhangXiaodong | Employeesupervisor | Male | 46 | Dimission | 2.75 | Yes |
| HuangYu | Director | Male | 47 | Dimission | 0 | Yes |
| WangChuan | Director | Male | 49 | Dimission | 0 | Yes |
| Total | -- | -- | -- | -- | 1,115.28 | -- |
VI.Performanceofdirectors'dutiesduringthereportingperiod
(1)Informationoftheboardmeetingsduringthereportingperiod
| Session | Conveningdate | Disclosuredate | Meetingresolution |
| The35thmeetingoftheseventhBoardofDirectors | January15,2021 | January16,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-01) |
| The36thmeetingoftheseventhBoardofDirectors | January25,2021 | January26,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-07) |
| ThefirstmeetingoftheEighthBoardofDirectors | February10,2021 | February10,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-151) |
| TheSecondmeetingoftheEighthBoardofdirectors | March10,2021 | March12,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-17) |
| TheThirdmeetingoftheEighthBoardofdirectors | April26,2021 | April28,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-33) |
| TheFourthmeetingoftheEighthBoardofdirectors | May24,2021 | May25,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-37) |
| TheFifthmeetingoftheEighthBoardofdirectors | July13,2021 | July14,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-44) |
| ThesixthmeetingoftheEighthBoardofdirectors | August26,2021 | August28,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-49) |
| The7thmeetingoftheEighthBoardofdirectors | September22,2021 | September24,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-55) |
| The8thmeetingoftheEighthBoardofdirectors | October28,2021 | October30,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-58) |
| The9thmeetingoftheEighthBoardofdirectors | December31,2021 | December31,2021 | http://www.cninfo.com.c(AnnouncementNo.:2021-61) |
(2)Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders
| Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders | |||||||
| Nameofdirector | Numberofboardmeetingsattendedduringthereportingperiod | Numberofboardmeetingsattendedinperson | Numberofboardmeetingsattendedbymeansofcommunication | Numberofboardmeetingsattendedbyproxy | Numberofboardmeetingsabsentfrom | Whethertoattendtheboardmeetinginpersontwiceinarow | Generalmeetingsofshareholdersattended |
| ZhangJian | 9 | 9 | 0 | 0 | 0 | No | 4 |
| ZhuMeizhu | 11 | 11 | 0 | 0 | 0 | No | 4 |
| NingMaozai | 11 | 11 | 0 | 0 | 0 | No | 4 |
| YinKefei | 9 | 9 | 0 | 0 | 0 | No | 1 |
| HeFei | 11 | 11 | 0 | 0 | 0 | No | 4 |
| SunMinghui | 9 | 9 | 0 | 0 | 0 | No | 1 |
| HeZhuowen | 11 | 3 | 8 | 0 | 0 | No | 4 |
| CaiYunqing | 11 | 3 | 8 | 0 | 0 | No | 4 |
| WangKai | 11 | 3 | 8 | 0 | 0 | No | 3 |
| ZhuJun | 2 | 2 | 0 | 0 | 0 | No | 0 |
| WangChuan | 2 | 2 | 0 | 0 | 0 | No | 0 |
| HuangYu | 2 | 2 | 0 | 0 | 0 | No | 0 |
ExplanationoffailuretoattendtheboardmeetinginpersontwiceinarowNone
(3)Directors'objectionstorelatedmattersoftheCompanyWhetherthedirectorraisesanyobjectiontotherelevantmattersoftheCompany
□Yes√NoDuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompany.
(4)Otherdescriptionsofdirectors'performanceofdutiesWhetherthedirectors'suggestionsontheCompanyhavebeenadopted
√Yes□NoThedirector'sstatementonwhethertherelevantsuggestionsoftheCompanyhavebeenadoptedornotDuringthereportingperiod,alldirectorsoftheCompanyworkeddiligentlyandconscientiouslyinstrictaccordancewiththerelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,theArticlesofAssociation,theRulesofProcedureoftheBoardofDirectorsandothersystemsoftheCompany,paidcloseattentiontotheCompany'sstandardizedoperationandbusinesssituation,putforward
relevantopinionsontheCompany'smajorgovernanceandbusinessdecisionsaccordingtotheactualsituationoftheCompany,reachedaconsensusafterfullcommunicationanddiscussion,andresolutelysupervisedandpromotedtheimplementationoftheresolutionsoftheBoardofDirectors,soastoensurescientific,timelyandefficientdecision-making,andprotectthelegitimaterightsandinterestsoftheCompanyandallshareholders.VII.SituationofspecialcommitteesundertheBoardofDirectorsduringthereportingperiod
| Committeename | Memberinformation | Numberofmeetingsconvened | Conveningdate | Meetingcontent | Putforwardimportantopinionsandsuggestions | Otherinformationofdutyperformance | Detailsofobjections(ifany) |
| AuditCommittee | HeZhuowen,CaiYuanqing,HeFei | 6 | January12,2021 | Itdeliberatedthe2020AuditWorkPlanforAnnualReport,2020MainFinancialIndicatorsExpressoftheGroup,2020InternalAuditWorkSummaryand2021InternalAuditWorkPlanand2020AuditPlanofShenzhenTextile. | TheAuditCommitteeemphasizedtheneedtostrengthenthetrackingandinspectionofauditrectification,enhancethetimelinessofinternalaudit,andreducetherecurrenceofproblemsfoundinaudit,andagreedtothe2020financialstatementindicatorexpressandrelatedworkplan. | ||
| February5,2021 | TheaccountantofGrantThorntonreportedtotheAudit | TheAuditCommitteeworkedinstrictaccordancewiththe |
| Committeetheprogressoftheauditofthe2020annualreportandtheproblemsconcernedintheauditprocess,andtheAuditDepartmentreportedthe2020worksummaryandthe2021internalauditworkplanoftheCompany.TheAuditCommitteeputforwardsuggestionsandrequirementsforthefollow-upauditwork. | CompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandtheArticlesofAssociationandtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,andunanimouslypassedrelevantproposalsafterfullcommunicationanddiscussion. | |
| March5,2021 | Itdeliberatedthe2020FinancialFinalAccountsReport,the2020ProfitDistributionPlan,theProposalonAccountingPolicyChange,theSpecialReportonthe | TheAuditCommitteeworkedinstrictaccordancewiththeCompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandthe |
| DepositandUseofRaisedFundsin2020,andtheProposalonthePermanentReplenishmentofWorkingCapitalwithSurplusRaisedFunds. | ArticlesofAssociationandtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,andunanimouslypassedrelevantproposalsafterfullcommunicationanddiscussion. | |
| April26,2021 | ItlistenedtotheInternalAuditWorkSummaryfortheFirstQuarterandtheInternalAuditWorkPlanfortheSecondQuarterof2021reportedbytheAuditDepartment,andputforwardrelevantrequirements. | TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthefirstquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthesecondquarterof |
| 2021. | ||||
| August13,2021 | ItlistenedtotheSpecialInspectionReportonStandardizedOperationofListedCompaniesintheFirstHalfof2021,theSummaryofInternalAuditWorkintheSecondQuarterandtheInternalAuditWorkPlanintheThirdQuarterof2021,whichwerereportedbytheAuditDepartment,deliberated3proposalsincludingtheProposalonHiringAuditInstitutionsin2021andputforwardrelevantrequirementsfortheauditwork. | TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthesecondquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthethirdquarterof2021.Inaccordancewiththerequirementsofenterpriseinternalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternal | No | No |
| controloffinancialreportandnon-financialreportinallmajoraspects.Itisunanimouslyagreedtopasstherelatedproposal. | ||
| October28,2021 | TheAuditCommitteelistenedtotheSummaryofAuditWorkintheThirdQuarterandtheInternalAuditWorkPlanintheFourthQuarterof2021reportedbytheRiskControlAuditDepartment,andputforwardrelevantrequirementsforinternalauditwork. | TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthethirdquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthefourthquarterof2021.Inaccordancewiththerequirementsofenterprise |
| internalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternalcontroloffinancialreportandnon-financialreportinallmajoraspects. | |||||||
| RemunerationandAppraisalCommittee | HeZhuowen,WnagKai,HeFei | 4 | January8,2021 | Itdeliberatedmattersrelatedtorepurchaseandcancellationofsomerestrictedstocks. | TheRemunerationandAppraisalCommitteebelievedthatsincetherepurchaseandcancellationofrestrictedstockswereincompliancewiththeAdministrativeMeasuresforEquityIncentivesofListedCompanies,MemorandumNo.3ofInformationDisclosureonMain | No | No |
| Board-EquityIncentivesandEmployeeStockOwnershipPlanandtheCompany's2017RestrictedStockIncentivePlan(Draft)andotherrelevantregulations,andtherepurchaseandcancellationoftheCompanywillnotaffecttheCompany'scontinuingoperationsorharmtheinterestsoftheCompanyandallshareholders,itisunanimouslyagreedtopasstheproposal. | ||
| March8,2021 | Itdeliberatedmattersrelatedtorepurchaseandcancellationofsome | TheRemunerationandAppraisalCommitteebelievedthatsincethis |
| restrictedstocks. | repurchaseandcancellationwereincompliancewiththeAdministrativeMeasuresforEquityIncentivesofListedCompanies,GuidelinesNo.9forBusinessManagementofListedCompaniesofShenzhenStockExchange-EquityIncentivesandtheCompany's2017RestrictedStockIncentivePlanandotherrelevantregulations,anditwillnotaffecttheCompany'scontinuingoperationorharmtheinterestsoftheCompanyandallshareholders,itis |
| unanimouslyagreedtorepurchaseandcancelsuchrestrictedstocks. | ||
| August12,2021 | ItdeliberatedtheProposalonFormulatingthe2020AnnualBusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagers. | TheRemunerationandAppraisalCommitteebelievedthattheformulationofthe2020BusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagersconformedtotherelevantprovisionsoftheGovernanceGuidelinesofListedCompanies,theArticlesofAssociationoftheCompanyandtheWorkingRegulationsoftheRemuneratio |
| nandAppraisalCommitteeoftheBoardofDirectors;anditisagreedtosubmitthe2020BusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagerstotheBoardofDirectorsoftheCompanyfordeliberation. | ||||
| October9,2021 | ItdeliberatedtheProposalonRemunerationAssessmentofSeniorManagersin2020. | TheRemunerationandAppraisalCommitteeworkedinstrictaccordancewiththeCompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandtheArticlesofAssociation | No | No |
| andtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,putforwardrelevantopinionsaccordingtotheactualsituationoftheCompany,andunanimouslypassedtheproposalafterfullcommunicationanddiscussion. | |||||||
| NominationCommittee | CaiYuanqing,HeFei,HeZhuowen,WangKai | 2 | August26,2021 | ItdeliberatedtheProposalonNominatingCandidatesforDeputyGeneralManageroftheCompanyandtheProposalonNominatingCandidatesforGeneralManageroftheCompany. | TheNominationCommitteemembersworkedinstrictaccordancewiththeArticlesofAssociationoftheCompanyandtheRegulationsontheWorkoftheNominationCommitteeoftheBoardofDirectors,reviewedthe | No | No |
| qualificationsofcandidatesandunanimouslypassedrelevantproposals. | ||
| February10,2021 | Itdeliberatedthenominationofseniormanagers. | TheNominationCommitteemembersworkedinstrictaccordancewiththeArticlesofAssociationoftheCompanyandtheRegulationsontheWorkoftheNominationCommitteeoftheBoardofDirectors,deliberatedthequalificationsofcandidatesandunanimouslypassedrelevantproposals. |
VIII.TheworkingstatusoftheboardofsupervisorsTheboardofsupervisorsfindsoutwhetherthecompanyhasrisksduringthemonitoringactivitiesduringthereportingperiod
□Yes√NoTheSupervisoryCommitteehasnoobjectiontothesupervisionmattersduringthereportingperiod.
IX.Particularsaboutemployees.
(1)Numberofstaff,professionalstructureandeducationalbackground
| Numberofin-servicestaffoftheparentcompany(person) | 56 |
| Numberofin-servicestaffofthemainsubsidiaries(person) | 1,575 |
| Thetotalnumberofthein-servicestaff(person) | 1,631 |
| Thetotalnumberofstaffreceivingremunerationinthecurrentperiod(person) | 1,631 |
| Retiredstaffwithchargespaidbytheparentcompanyandmainsubsidiaries(person) | 0 |
| Professional | |
| Category | Numberofpersons（person） |
| Production | 1,158 |
| Sales | 29 |
| Technical | 231 |
| Financial | 33 |
| Administrative | 180 |
| Total | 1,631 |
| Education | |
| Category | Numberofpersons（person） |
| Holdersofmaster’sdegreeorabove | 41 |
| Graduatesofregularuniversity | 265 |
| Colleges | 157 |
| Mid-schoolorbelow | 1,168 |
| Total | 1,631 |
(2)RemunerationpoliciesIn2021,theCompanycarriedoutmanagementforemployees’compensationinstrictaccordancewiththestate’srelevantlawsandregulationsandguaranteedthefairnessandreasonabilityofthecompensation,whichofferedrelevantrewardsandincentivestotheemployees,acceleratethemtojointlydevelopwiththeCompany,andsimultaneouslyreflectedhumanisticcareoftheCompany.
(3)TrainingplanCombiningwiththeCompany'sdevelopmentstrategy,itcontinuedtostrengthentheCompany'stalenttrainingsystemtohelpemployeesandthecompanydeveloptogether.In2021,itimprovedthesystematictalenttrainingsystemtoprovidesolidsupportfortheCompany'sstrategicdevelopment.First,itorganizedthespecialtrainingof
"ButterflyChangeBreakthrough·WininExecution",comprehensivelypublicizedandimplementedtheexecutionculture,andenhancedtheexecutionandcombateffectivenessofallemployees.Second,itorganizedacasesharingactivityof"SuccessinDetails·WininImplementation",whichenhancedtheinteractionamongemployeesandcultivatedthehabitofactivethinkingandactivelearningamongemployees.Third,itorganizedaseriesactivitiesof"GettoKnowYou·Face-to-Face",inwhichtheChairmanoftheCompanycommunicatedwiththecorebackbonesofaffiliatedenterprises,soastoacquireadeepunderstandingoftheactualsituationandexistingproblemsofenterprisesandcadres,andbetterpromotethesustained,healthyandhigh-qualitydevelopmentoftheGroup.Fourth,itorganizedthemanagementoftrainingpoints,establishedalearningorganization,mobilizedtheenthusiasmofemployeesinlearningandsharing,andpromotedemployees'activelearning.Intermsoftraining,theCompanyhelpedemployeestoopenupnewhorizonsoflearninginmultipledimensions,andpromotetheirpracticalworkbyapplyingtheories.
(4)Outsourcingsituation
□Applicable√NoApplicable
X.SpecificationofprofitdistributionandcapitalizingofcommonreservesFormulation,implementationoradjustmentoftheprofitdistributionpolicy,especiallythecashdividendpolicyduringthereportingperiod
√Applicable□NotapplicableOnApril7,2021,theCompanyheldthe2020annualgeneralmeetingofshareholderstodeliberateandpassthe2020profitdistributionplan.The2020profitdistributionplanoftheCompanyisasfollows:basedontheprofitavailablefordistributionintheconsolidatedstatement,withthetotalsharecapitalof507,772,279sharesasthebaseasofDecember31,2020,acashdividendofRMB0.30(includingtax)willbedistributedtoallshareholdersforevery10shares,withatotalcashdividendofRMB15,233,168.37(includingtax),theremainingundistributedprofitswillbecarriedforwardtothenextyear;Nobonusshareswillbegiven,andnocapitalreservewillbeusedtoincreasecapital.IfthetotalsharecapitaloftheCompanychangesbeforetheimplementationofthedistributionplan,thetotalsharecapitalofdateofrecordwillbetakenasthebasewhenthedistributionplanisimplementedinthefuture,andthespecificamountwillbesubjecttotheactualdistribution.TheCompany'ssharesheldbytheCompanyarenotincludedinprofitdistribution.
Duringtheperiodfromthedisclosureofthedistributionplantoitsimplementation,thetotalsharecapitaloftheCompanywasreducedfrom507,772,279sharesto506,521,849sharesduetothecompletionofcancellationprocedureofrestrictedstockrepurchase.Accordingtotheaboveprofitdistributionplan,theCompany's2020profitdistributionplanisadjustedasfollows:basedontheCompany'sexistingtotalsharecapitalof506,521,849,acashdividendofRMB0.30(includingtax)willbedistributedtoallshareholdersforevery10shares.
| Specialdescriptionofcashdividendpolicy | |
| WhetheritmeetstherequirementsoftheArticlesofAssociationortheresolutionofthegeneralmeetingofshareholders: | Yes |
| Whetherthedividendstandardandproportionareexplicitandclear: | Yes |
| Whethertherelevantdecision-makingproceduresandmechanismsarecomplete: | Yes |
| Whethertheindependentdirectorshaveperformedtheirdutiesandplayedtheirduerole: | Yes |
| Whethertheminorityshareholdershavetheopportunitytofullyexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestshavebeenfullyprotected: | Yes |
| Whetherthecashdividendpolicyisadjustedorchanged,andwhethertheconditionsandproceduresarecompliantandtransparent: | Yes |
Duringthereportingperiod,theCompanymadeaprofitandtheprofitavailabletoshareholdersoftheparentcompanywaspositive,butnocashdividenddistributionplanwasputforward.
□Applicable√NotapplicableProfitdistributionandcapitalizationofcapitalreserveduringthereportingperiod
√Applicable□Notapplicable
| Bonussharesforeverytenshares(Shares) | 0 |
| Cashdividendforeverytenshares(Yuan)(Tax-included) | 0.50 |
| Atotalnumberofsharesasthedistributionbasis(shares) | 506,521,849 |
| Cashdividendamount(yuan,includingtax | 0.50 |
| Othermeans(suchasrepurchaseofshares)cashdividendamount(yuan) | 0.00 |
| Totalcashdividend(yuan,includingtax) | 25,326,092.45 |
| Distributableprofit(yuan) | 130,746,251.74 |
| Proportionofcashdividendinthedistributableprofit | 100% |
| Cashdividenddistributionpolicy | |
| Whenthecompany'sdevelopmentstageisinthegrowthperiodandtherearemajorcapitalexpenditurearrangements,whentheprofitdistributioniscarriedout,theproportionofcashdividendsinthisprofitdistributionshouldbeatleast20%. | |
| Detailedexplanationoftheprofitdistributionorcapitalreservetransferplan | |
| Basedonthedistributableprofitsintheconsolidatedstatement,withthetotalsharecapitalof506,521,849sharesasofDecember31,2021asthebase,acashdividendofRMB0.5(includingtax)wasdistributedtoevery10sharesofallshareholders,withatotalcashdividendofRMB25,326,092.45(includingtax). | |
XI.ImplementationSituationofStockIncentivePlanoftheCompany,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures
√Applicable□Notapplicable
(1)EquityincentiveOnNovember27,2017,theProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanwasexaminedandapprovedinthe7thboardmeetingofthecompany’s7thsessionboardofdirectors,andrelatedproposalsagreedtofulfilltherelevantproceduresandrelatedproposalsagreedtofulfilltherelevantprocedures.PleaserefertoAnnouncementNo.:2017-57,2017-58,2017-62onwww.cninfo.com.cn.Theprogressduringthereportingperiodisnowexplainedasfollows:
1.RegardingtherepurchaseandcancellationofsomerestrictedstocksOnJanuary15,2021,thecompanyheldthe35thmeetingofthe7thBoardofDirectorsandthe25thmeetingofthe7thBoardofSupervisors.Theboardofdirectorsdeliberatedandapprovedthe"ProposalonRepurchaseandCancellationofSomeRestrictedStocks",whichintendstorepurchaseandcancel7,950restrictedstocksheldbyanoriginalincentiveobjectwhoresignedduetopersonalreasons,atarepurchasepriceofRMB5.73pershare;Itisproposedtorepurchaseandcancelthe6,000restrictedsharesheldbyaretiredincentiveobjectatapriceof6.23yuanpershare.
OnFebruary2,2021,thecompanyheldthefirstextraordinarygeneralmeetingofshareholdersin2021toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",agreeingtothecompany'stotalholdingsof1originalincentiveobjectwhoresignedduetopersonalreasons7,950restrictedstockswererepurchasedandcancelledatarepurchasepriceof5.73yuan/share;agreedthatthecompanywouldrepurchaseandcancel6,000restrictedstocksheldbyaretiredincentiveobjectatarepurchasepriceof6.14yuan/share,intotal13,950restrictedstockswererepurchasedandcancelled
OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd
2.Regardingtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationofthethirdphaseofrestrictedstocks
OnMarch10,2021,thecompanyheldthesecondmeetingoftheeighthboardofdirectorsandthesecondmeetingoftheeighthboardofsupervisors.The"ProposalonRepurchaseandCancellationofCertainRestrictedStocks"wasreviewedandpassed,andthecompanyagreedtoprovideincentivesto102Atotalof1,236,480restrictedstocksheldinthethirdperiodthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.TherepurchasepricewascalculatedasthegrantpriceofRMB6.26pershareplustheinterestonbankdepositsduringthesameperiod.
OnApril7,2021,thecompanyheldthe2020AnnualGeneralMeetingofShareholderstoreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedthatthecompanywouldrepurchaseandcancel1,236,480restrictedstocksheldby102incentiveobjectsinthethirdissuethatdidnotmeettheconditionsforliftingtherestrictionsonsales,andtherepurchasepricewasRMB6.26pershare.
OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.EquityincentivesobtainedbydirectorsandseniormanagersoftheCompany
□Applicable√NotapplicableEvaluationmechanismandincentivesofseniormanagersNone
(2)ImplementationofESOP
√Applicable□NotapplicableAlleffectiveESOPsduringthereportingperiod
| Scopeofemployees | Quantityofemployees | Totalnumberofsharesheld | Changeinformation | Proportionoftotalsharecapitaloflistedcompanies | Fundingsourcesforplanimplementation |
| Directors,supervisors,seniormanagersandothercoretechnical/business/managementbackbonesoftheCompany(includingsubsidiaries,thesamebelow). | 127 | 1403600 | No | 0.28% | TheCompanyemployees'legalremuneration,self-raisedfundsandotherlegalwayspermittedbylawsandregulations. |
Shareholdingofdirectors,supervisorsandseniormanagersintheESOPduringthereportingperiod
| Name | Position | Numberofsharesheldatthebeginningofthereportingperiod | Numberofsharesheldattheendofthereportingperiod | Proportionoftotalsharecapitaloflistedcompanies |
| ZhangJian | ChairmanoftheBoard | 0 | 114,206 | 0.02% |
| ZhuMeizhu | Director,GeneralManager | 0 | 114,206 | 0.02% |
| NingMaozai | Director,SecretaryofPartyCommitteeandSecretaryofDisciplineInspectionCommission | 0 | 28,551 | 0.01% |
| LeKunjiu | DeputyGM | 0 | 57,103 | 0.01% |
| LiuHonglei | DeputyGM | 0 | 57,103 | 0.01% |
| HeFei | Director,CFO | 0 | 57,103 | 0.01% |
| JiangPeng | SecretaryoftheBoard | 0 | 57,103 | 0.01% |
| ZhanLumei | Employeesupervisor | 0 | 17,131 | 0.00% |
Changesinassetmanagementinstitutionsduringthereportingperiod
□Applicable√NotapplicableChangesinequitycausedbyholders'disposalofsharesduringthereportingperiod
√Applicable□NotapplicableDuringthereportingperiod,HuangWeiqiandHeGuangdong,theoriginalholdersoftheCompany'sfirstESOP,
resignedforpersonalreasons.UponconfirmationbythemanagementcommitteeoftheCompany'sfirstESOP,theytransferredtheir50,000sharesinESOPtoHuoZhifeng.Afterthetransfer,HuoZhifeng'sshareinthefirstESOPoftheCompanywaschangedfrom150,000to250,000shares.Exerciseofshareholders'rightsduringthereportingperiodDuringthereportingperiod,theCompany'sESOPwasnotinvolvedinthevotingoftheCompany'sgeneralmeetingofshareholdersandexerciseothershareholders'rights.OtherrelevantinformationanddescriptionofESOPduringthereportingperiod
□Applicable√NotapplicableThemembershipoftheESOPManagementCommitteehaschanged.
□Applicable√NotapplicableFinancialimpactofESOPonlistedcompaniesinthereportingperiodandrelatedaccountingtreatment
□Applicable√NotapplicableTerminationofESOPduringthereportingperiod
□Applicable√NotapplicableOthernoteNone
(3)Otheremployeeincentives
□Applicable√NotapplicableXII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
(1)ConstructionandimplementationofinternalcontrolDuringthereportingperiod,theCompanytimelyupdatedandimprovedtheinternalcontrolsystemaccordingtotheBasicStandardsforEnterpriseInternalControlanditssupportingguidelines,andestablishedascientific,concise,applicableandeffectiveinternalcontrolsystem.TheAuditCommitteeandtheRiskControlAuditDepartmentjointlyformedtheCompany'sriskinternalcontrolmanagementorganizationsystemtosuperviseandevaluatetheCompany'sinternalcontrolmanagement.Throughtheoperation,analysisandevaluationoftheCompany'sinternalcontrolsystem,therisksinoperationandmanagementareeffectivelyprevented,andtherealizationofinternalcontrolobjectivesispromoted.AccordingtotheidentificationofmajorinternalcontroldefectsintheCompany'sfinancialreport,therewerenomajorinternalcontroldefectsinthefinancialreportonthebasedateoftheinternalcontrolevaluationreport.Inaccordancewiththerequirementsofenterpriseinternalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternalcontroloffinancialreportsinallmajoraspects.AccordingtotheidentificationofmajordefectsintheinternalcontroloftheCompany'snon-financialreports,theCompanyfoundnomajordefectsintheinternalcontrolofnon-financialreportsonthebasedateoftheinternalcontrolevaluationreport.
(2)Detailsofmajorinternalcontroldefectsfoundduringthereportingperiod
□Yes√No
XIII.ManagementandcontroloftheCompany'ssubsidiariesduringthereportingperiod
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Measurestakenforsolution | Solutionprogress | Subsequentplannedsolution |
| Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable |
XIV.Internalcontrolself-evaluationreportorinternalcontrolauditreport
(1)Self-evaluationreportoninternalcontrol
| Disclosuredateofappraisalreportoninternalcontrol | March17,2022 | ||
| Disclosureindexofappraisalreportoninternalcontrol | JuchaoWebsite:（http://www.cninfo.com.cn）,Self-evaluationreportofinternalcontrolin2021 | ||
| Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements | 100.00% | ||
| Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements | 100.00% | ||
| StandardsofDefectsEvaluation | |||
| Category | FinancialReport | Non-financialReport | |
| Qualitativestandard | Thedefectsrelatedtofinancialreportsweredividedintogeneraldefects,importantdefectsandsignificantdefectsaccordingtotheirseverity.Significantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,whichmayleadtoseriousdeviationfromthecontrollingobjectives.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects. | Inthefollowingcircumstances,thecompanywasidentifiedasexistingnon-financial–reportingrelatedsignificantdefectsofinternalcontrollingdefects:Thebusinessactivitiesofthecompanyseriouslyviolatednationallawsandregulations;(2)Thedecision-makingprocessof"Three-Importance&One-Large"wereunscientific,leadingtomajordecisionerrors,andcausingmajorpropertylosestothecompany;(3)Massivelossofkeypostsortechnologytalents;(4)Thecontrollingsysteminvolvingimportantbusinessfieldsofthecompanyfailed;(5)ItCausedseriousnegativeeffectsonbusinessofthecompany,andtheeffectscouldn’tbeeliminated;(6)Theevaluationresultsofinternalcontrolweresignificantdefects,andcouldn’tgeteffectiverectification.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequences | |
| werebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects. | |||
| Quantitativecriteria | Misstatementamountoffinancialstatementfellintothefollowingintervals:significantdefects:Misstatementamount≥1.5%oftotalrevenue;Misstatementamount≥10%ofgrossprofit;Misstatementamount≥1%oftotalasset;Misstatementamount≥5%ofnetasset.significantdefects:0.5%ofTotalrevenue≤Misstatementamount＜1.5%oftotalrevenue;5%ofgrossprofit≤Misstatementamount＜10%ofgrossprofit;0.5%ofTotalasset≤Misstatementamount＜1%oftotalrevenue;3%ofNetassets≤Misstatementamount＜5%ofnetassets.Generaldefects:0%oftotalrevenue＜Misstatementamount＜0.5%ofTotalrevenue;2%ofgrossprofit＜Misstatementamount＜5%oftotalprofit;0%oftotalassets＜Misstatementamount＜0.5oftotalassets;0%ofnetassets＜Misstatementamount＜3%ofnetassets. | Notapplicable | |
| Numberofmajordefectsinfinancialreporting（a） | 0 | ||
| Numberofmajordefectsinnonfinancialreporting(a) | 0 | ||
| Numberofimportantdefectsinfinancialreporting（a） | 0 | ||
| Numberofimportantdefectsinnonfinancialreporting（a） | 0 | ||
(2)InternalControlauditreport
√Applicable□Notapplicable
| Reviewopinionsintheinternalcontrolauditreport |
| oallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.：Accordingtotherelevantrequirementsofthe“AuditGuidelineofEnterpriseInternalControl”andtheChineseCPAcriteria,thecompanyhasauditedtheeffectivenessofinternalcontrolofthefinancialstatementofShenzhenTextile(Holdings)Co.,Ltd.(ShenzhenTextile)atthedateofDecember31,2021.1.Theresponsibilityofenterprisefortheinternalcontrol.Accordingtotheprovisionsof“FundamentalNormsforEnterpriseInternalControl”,“OperationGuidelineofEnterpriseInternalControl”and“EvaluationGuidelineofEnterpriseInternalControl”,thecompanyhasestablished,perfectedandeffectivelyimplementedtheinternalcontrol,andmadeanevaluationforitseffectiveness,whicharetheresponsibilitiesoftheBoardofDirectorsofShenzhenTextile. |
| 2.TheresponsibilityofCPA.Thecompanyshallberesponsiblefortheexpressionofauditopinionsontheeffectivenessofinternalcontrolinthefinancialstatementandthedisclosureofseriousdeficiencyofinternalcontrolexceptforthefinancialstatementonthebasisoftheimplementationofaudit.3.Theinherentlimitationofinternalcontrol.Thereisthepossibilityofunpreventableerrors.Inaddition,duetothechangeofsituation,theinappropriateinternalcontrolismaybeshown,orthecontrolpolicyandtheabidanceofprocedurecanbereduced.Basedontheauditresultsofinternalcontrol,thefutureinternalcontrolisexpectedtohaveacertainrisk.4.Theauditopinionsofinternalcontrolinthefinancialstatement.ThecompanybelievesthatShenzhenTextilehasmaintainedtheeffectiveinternalcontrolofthefinancialstatementinallthemajoraspectsaccordingto“FundamentalNormsforEnterpriseInternalControl”andtherelevantprovisionsonDecember31,2021GrantThorntonInternationalLtd.(SpecialGeneralPartnership)ChineseC.P.A.ChenZhifangChineseC.P.A.LiuDuoqiMarch15,2022 | |
| Disclosuredateofauditreportofinternalcontrol(full-text) | Disclosure |
| Indexofauditreportofinternalcontrol(full-text) | March17,2022 |
| Internalauditreport’sopinion | JuchaoWebsite:（http://www.cninfo.com.cn）;AuditreportofinternalcontroloftheCompany |
| Typeofauditreportoninternalcontrol | Unqualifiedauditor’sreport |
| Whetherthereissignificantdefectionnon-financialreport | No |
HastheCPAsissuedaqualifiedauditor’sreportofinternalcontrol.
□Yes√NoDoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardofDirectors
√Yes□NoXV.Rectificationofself-examinationproblemsinspecialgovernanceactionsoflistedcompaniesAccordingtothedeploymentofChinaSecuritiesRegulatoryCommission,in2021,theCompanyorganizedtheself-inspectionofspecialactionsoflistedcompanies'governance.Duringtheself-inspectionofgovernance,thefollowingproblemswerefound:1.TheCompany'sBoardofDirectorshasnotchangedwhendue;2.ThenumberofindependentdirectorsintheAuditCommitteeoftheCompanydoesnotexceedhalfofthetotal;3.Thedirectors,supervisorsandseniormanagersoftheCompanyfailedtoattend(orattendasanonvotingdelegate)orentrustotherstoattendgeneralmeetingofshareholders,meetingsofboardofDirectorsandBoardofSupervisorsasrequired.Therectificationmeasuresareasfollows:
1.ThroughcommunicationwiththecontrollingshareholderShenzhenInvestmentHoldingsCo.,Ltd.,itlearnedthatShenzhenInvestmentHoldingsreceivedanoticefromthesuperiorthatinprinciple,thedeliberationofcadreandpersonnelmatterswassuspendedduringthechangeofShenzhenMunicipalPartyCommittee.AstheChairmanoftheCompanyisappointedandmanagedbytheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,andthere-electionofShenzhenMunicipalPartyCommitteehasnotyetbeencompleted,thepostponementofthere-electionoftheSeventhBoardofDirectorsandBoardofSupervisorshasbeenreportedtoShenzhenStockExchangeforrecords.OnNovember25,2020,theCompanystartedthechangeofofficeimmediatelyafterreceivingtherecommendationletterfromthecontrollingshareholder,andonFebruary10,2021,itcompletedthechangeofdirectorsandsupervisors;
2.TheAuditCommitteeoftheSeventhBoardofDirectorsoftheCompanyconsistsof4members,including2independentdirectors.Inthepast,theCompanyroutinelyaddedtheChiefFinancialOfficerandtheSecretaryoftheCommissionforDisciplineInspectiontotheAuditCommitteeoftheBoardofDirectors,resultinginlessthanhalfoftheindependentdirectorsintheAuditCommittee.TheAuditCommitteeoftheEighthBoardofDirectorsoftheCompanyconsistsof3members,including2independentdirectors,whichhavebeenrectified;
3.WhentheCompany'sdirectorsandsupervisorsareunabletoattendthegeneralmeetingofshareholders,themeetingsoftheBoardofDirectorsandtheBoardofSupervisorsoftheCompany,theyhaveallfulfilledthecorrespondingleaveprocedures,andthereisnoabsencefromthegeneralmeetingofshareholderswithoutreason.
V.Environmental&SocialResponsibilityI.SignificantenvironmentalissuesWhethertheCompanyoranyofitssubsidiariesisidentifiedasakeypolluterbytheenvironmentauthorities
√Yes□No
| Companyorsubsidiaryname | Mainpollutantandspecificpollutantname | Emissionway | Emissionportnumber | Emissionportdistributioncondition | Emissionconcentration(mg/Nm3) | Implementedpollutantemissionstandards | Totalemission | Verifiedtotalemission(Tons) | Excessiveemissioncondition |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Effluents：COD | Openchanneldischargeaftertreatment | 1 | Northwestsideofplantarea | ＜60mg/L | 60mg/L | ＜2.43t/a | 2.43t/a | No |
Preventionandcontrolofpollutionfacilitiesconstructionandoperation
TheBeautyCenturyCompanywastewatertreatmentfacilitiesadoptthetreatmentprocessesofregulation,hydrolysisacidification,coagulationandairflotation,contactoxidation,coagulationandsedimentationandfiltration.Itiswithstabletreatmentprocess,andgoodeffluenteffectofwastewatertreatment.Thewastewaterfromtheproductionprocesscanmeettheenvironmentalprotectionrequirementsafterbeingtreatedbywastewatertreatmentfacilities.
TheCompanyinvestedRMB960,000tobuildthereusesystemofreclaimedwater,andnowthereuseprojectofreclaimedwaterhasbeenacceptedandstartedoperation.SituationofConstructionprojectenvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesTheCompanycompliedwithrelevantenvironmentalprotectionregulationsatsuchthreestagesasprojectdesign,constructionandoperationandobtainedenvironmentalprotectionapprovalsneededateachcorrespondingstageincludingEIAreport,EIAapproval,environmentalprotectionacceptancedecisionandemissionpermitamongothers.EmergencyPlanforEmergencyEnvironmentalIncidentsAccordingtotheactualsituationofthecompany,thepreparationoftheemergencyplanforemergencyenvironmentalincidentswascompleted,andanemergencyenvironmentalemergencyplanfilingapplication
EnvironmentalSelf-MonitoringProgramAccordingtotheenvironmentalmanagementrequirementsofthepollutantdischargepermit,thespecificmonitoringschemeisasfollows:onceevery6hforpHvalueofwastewater,onceperdayforchroma,onceperdayforsuspendedsolids,onceperweekforbiochemicaloxygendemandinfivedays,onceevery6hforchemicaloxygendemand,onceperdayfortotalnitrogen,onceperdaytotalphosphorus,oncepermonthforsulfide,oncepermonthforaniline,onceperyearchlorinedioxide,andtwiceperyearforwastegasatfactoryboundary(onceeverysixmonths).Administrativepenaltiesforenvironmentalproblemsduringthereportingperiod
| Nameofcompanyorsubsidiary | Reasonsforpunishment | Violationsituation | Penaltyresult | Impactontheproductionandoperationoflistedcompanies | Company'srectificationmeasures |
| No | No | No | No | No | No |
OtherEnvironmentalInformationThatShouldBeDisclosedNoneMeasuresandeffectstakentoreduceitscarbonemissionsduringthereportingperiod
√Applicable□Notapplicable
Theuseofreclaimedwatercaneffectivelyreducewastewaterdischarge,and2,500tonsoftapwaterhavebeensavedinthereportingperiod.
OtherEnvironmentalRelatedInformationNoneII.Socialresponsibilities
1.Protectionofshareholders'rightsandinterests
Duringthereportingperiod,theCompanyabidedbylawsandregulations,operatedincompliancewithregulations,andconstantlyimproveditsgovernancestructureandfurtherstandardizedtheCompany'soperationinstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLawandtheGovernanceGuidelinesforListedCompaniesandotherlawsandregulations.Itadheredtotheproceduresystemofgeneralmeetingofshareholders,BoardofDirectors,BoardofSupervisorsandindependentdirectorsasthecore,furtherimprovedthecorporategovernancestructureandvariousmanagementsystems,constantlyimprovedtheinternalcontrolsystemintheprocessoftheCompany'soperationandmanagement,tookeffectiveoperationalriskpreventionmeasures,earnestlysafeguardedandprotectedshareholders'rightsandinterests,andlaidasolidfoundationforthehealthyandsustainabledevelopmentoftheCompany.IndependentdirectorspaidcloseattentiontotheCompany'soperation,putforwardmanyvaluableprofessionalsuggestionsfortheCompany'sdailyoperationandkeyconcerns,andplayedanimportantroleinimprovingthesupervisionmechanismandsafeguardingthelegitimaterightsandinterestsoftheCompanyandallshareholders.TheCompanystrictlyfulfilleditsobligationofinformationdisclosureaccordingtolaw,truly,accurately,completely,timelyandfairlydisclosedinformationthathasasignificantimpactoninvestmentdecision-making.Thedisclosurecontentwasconciseandeasytounderstand,fullyrevealedrisks,andfacilitatedallshareholderstoconsult.Accordingtoregulatoryrequirements,itfurthercombedandimprovedrelevantsystemsandenhancedthequalityofinformationdisclosure.
Duringthereportingperiod,theCompanyfurtherimprovedtheinformationdisclosureandinformationtransparency,fulfilledtheobligationofinformationdisclosureinstrictaccordancewithregulatoryrequirements,communicatedwithinvestorsthroughvariouschannels,answeredquestionsraisedbyinvestorsinatimelymanner,andimprovedinformationtransparency.Meanwhile,itcooperatedwithregulatoryauthoritiestosafeguardtherightsandinterestsofinvestors,especiallysmallandmedium-sizedinvestors,andrealizedthebenigninteractionandharmoniousdevelopmentbetweeninvestorsandlistedcompanies.
2.Protectionofemployees'rightsandinterestsAccordingtotheenterprisedevelopmentstrategy,theCompanyfurtherrevisedandimprovedthehumanresourcemanagementsystem.Itestablishedlaborrelationsbyenteringintolaborcontractswithemployees,andimplementnecessarymanagementforemployeesaccordingtotheLaborLawandrelevantmanagementregulationsoftheCompany.TheCompanyestablishedascientificassessmentanddistributionsystemaccording
totheclassificationofseniormanagers,departmentmanagersandemployees,establishedasystematicandstandardizedperformanceassessmentandevaluationsystem,andconductedacomprehensive,objective,fairandaccurateassessmentofemployees'performanceofdutiesandtasks,whichisusedasthebasisfordeterminingemployees'remunerations,rewardsandpunishmentsandappointments.Itconductedmarket-basedselectionandemployment,createdagoodenvironmentfortalentdevelopment,andconstantlystimulatedinnovationvitalityandmotivation.In2021,theCompanystrivedtocreateagoodcorporatecultureatmosphere,strengthenthepsychologicalcareforemployees,listentotheirinnervoices,andenhanceemployees'senseofgainandbelonging;Meanwhile,itfurtherenhancedtheGroupleaders'understandingofthemindstateofgrass-rootsemployees,bettercaredforandhelpedemployeestogrowintotalents,andregularlyorganizedface-to-facecommunicationbetweentheCompanyleadersandthecorebackboneoftheGroupemployeesandsubordinateenterprises.Inthemeantime,theCompanynewlyrevised3humanresourcemanagementsystems,namely,theManagementMeasuresofShenzhenTextileGroup'sRankPromotion,theManagementSystemofShenzhenTextileGroup'sStaffPerformanceAppraisalandtheInterimMeasuresofShenzhenTextileGroup'sAnnualAdvancedSelection,andoptimizedandimprovedtheCompany'spersonneltraining,performancecompensationmanagementandrankpromotion.Itactivelyguidedandassistedsubordinateenterprisestopromotevarioushumanresourcemanagementnorms,andguidedenterprisestostrengthenremunerationperformancemanagementandmakereasonableadjustmentstoemployees'remunerationlevelaccordingtotheactualsituationofeachenterprise.Itstrengthenedthescientificandstandardizedmanagementofhumanresources,avoidedlaborrisks,improvedthelevelofhumanresourcesmanagement,andfurthermobilizedtheenthusiasmofemployees.
3.EnvironmentalprotectionStrivingtobuildamodern"greenenterprise"istheCompany'slong-termpositiveresponsibility.Weinsistonbuildingthewholeprocessofgreencycleintheindustrialchain,realizingtherealgreencycleeconomy,improvingthequalityoftheCompany'ssurroundingenvironmentandescortingtheCompany'sproduction.Duringthereportingperiod,theOSBLnoise,industrialwastewaterandwastegasemissionsintheCompany'sproductionprocessallpassedthemonitoringoftheenvironmentalprotectiondepartment,andcompliedwiththestandardrequirementsofrelevantlawsandregulations.Duringthereportingperiod,theCompany'sorganicwastegaswastreatedbytherotaryRTOtreatmentprocess,andtheremovalrateofVOCsinorganicwastegasreachedover99%.Onthebasisofmeetingthedischargestandards,thepollutantdischargewasfurtherreduced,andnomajorenvironmentalincidentsoccurred.Inaddition,theCompanyvigorouslyadvocatedgreenoffice,carriedoutvariousformsofenvironmentalprotectionpublicityandeducationactivities,raisedemployees'awarenessofenergyconservationandemissionreduction,realizedthecoordinateddevelopmentofproduction&operationandenvironmentalprotection,andearnestlyfulfilledsocialresponsibilities.
4.Protectionofconsumers'rightsandinterestsTheCompanyhasbeenadheringtothecorevaluesof"honestyorientedandresponsibilityfirst".Beingresponsibleforcustomersisthesourceofourenterprisevalue.Itisourunremittingpursuittoprovidecustomerswithprofessional,personalizedandall-roundproductsandservices.Withcustomerdemandasthecore,continuouslyinnovatingtoservecustomers,andcontinuouslyimprovingandenhancingproductqualityarethedrivingforcefortheCompanytoachievegoodperformanceandsustainabledevelopment,andalsoanimportantguaranteetowincustomers'long-termtrust.Ithasprovidedactiveattentiontocustomerneeds,quickresponsetocustomerfeedback,sincereconsiderationforcustomersandpromotionoflong-termcooperativepartnership.
III.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationDuringthereportingyear,theCompanydidnotcarryouttargetedpovertyalleviationwork,nordidithaveafollow-uptargetedpovertyalleviationplan.
VI.ImportantEvents
I.Commitmentstofulfillthesituation
1.Thefulfilledcommitmentsinthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebythecompany,shareholder,actualcontroller,acquirer,director,supervisor,seniormanagementpersonnelandotherrelatedparities.
√Applicable□Notapplicable
| Commitment | Commitmentmaker | Type | Contents | Timeofmakingcommitment | Periodofcommitment | Fulfillment |
| Commitmentonsharereform | ShenzhenInvestmentHoldingsCo.,Ltd. | Sharereductioncommitment | AsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldiscloseanannouncementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange. | August4,2006 | Sustainedandeffective | UnderFulfillment |
| Commitmentintheacquisitionreportorthereportonequitychanges | ||||||
| Commitmentmadeupontheassetsreplacement | ||||||
| Commitmentsmadeuponissuance | ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrently | October9,2009 | Sustainedandeffective | UnderFulfillment |
| necessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority. | |||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | Thecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetitionwithShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4. | July14,2012 | Sustainedandeffective | UnderFulfillment |
| AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile. | ||||||
| Equityincentivecommitment | ShenzhenTextile(Holdings)Co.,Ltd. | Othercommitment | 1.Thecompanyundertakesnottoprovideloans,loanguarantees,andanyotherformsoffinancialassistancetotheincentiveobjectsforobtainingtherestrictedstocksintheincentiveplan;2.ThecompanyundertakesthatthereisnocircumstancethatthestockincentiveshallbeprohibitedasstipulatedintheprovisionsofArticle7ofthe“MeasuresfortheManagementofStockIncentivesofListedCompanies”. | November27,2017 | May13,2021 | Completed |
| Othercommitmentsmadetominorityshareholders | ||||||
| Executedtimelyornot? | Yes | |||||
| Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstageoftheworkingplan | Notapplicable | |||||
2.Theexistenceofthecompany'sassetsorprojectsearningsforecastsandearningsreportingperiodisstillintheforecastperiod,thecompanyhasassetsorprojectsmeettheoriginalprofitforecastmadeandthereasonsexplained
□Applicable√Notapplicable
II.Particularsaboutthenon-operatingoccupationoffundsbythecontrollingshareholder
□Applicable√NotapplicableNoneIII.Illegalprovisionofguaranteesforexternalparties
□Applicable√NotapplicableNoneIV.ExplanationoftheBoardofDirectorsonthelatest"Non-standardAuditReport"
□Applicable√NotapplicableV.Notesfor“non-standardauditreport”ofCPAsfirmduringtheReportingPeriodbyboardofdirectorsandsupervisoryboard
□Applicable√NotapplicableVI.Explainchangeoftheaccountingpolicy,accountingestimateandmeasurementmethodsascomparedwiththefinancialreportingoflastyear.
□Applicable√NotapplicableNoneVII.Explainchangeoftheconsolidationscopeascomparedwiththefinancialreportingoflastyear.
√Applicable□NotapplicableAsofDecember31,2021,thecompanyhasincluded8subsidiariesinthescopeofconsolidation.Fordetails,pleaserefertoSection10-9,"EquityinSubsidiaries"ofthisreport.Thescopeofthecompany’sconsolidationthisyearhasincreasedbyonehouseholdcomparedtothepreviousyear.Fordetails,pleaserefertoSection10-8"ChangesinConsolidationScopeforOtherReasons"ofthisreport.VIII.Engagement/DisengagementofCPAsCPAscurrentlyengaged
| NameofthedomesticCPAs | GrantThorntonInternationalLtd（SpecialGeneral |
| Partnership） | |
| Remunerationfordomesticaccountingfirm(Tenthousandsyuan) | 87.8 |
| SuccessiveyearsofthedomesticCPAsofferingauditingservices | 1 |
| NameofCPA | ChenZhifang,LiuDuoqi |
| Continuousyearsofauditservicesofcertifiedpublicaccountantsofdomesticpublicaccountingfirms | ThecontinuousservicelifeofChenZhifang'sauditserviceis1year,andthatofLiuDuoqi'sauditserviceis0year. |
HastheCPAsbeenchangedinthecurrentperiod
□Yes√No
DescriptionoftheCPAs,financialadviserorsponsorengagedforinternalcontrolauditing
√Applicable□Notapplicable
Duringthereportingperiod,thecompanyengagedGrantThorntonInternationalLtd(SpecialGeneralPartnership)asthecompany'sinternalcontrolauditagencyfor2021,withanauditremunerationofRMB878,000(includingtravelexpensesandotherexpenses).TherelatedfinancialstatementauditfeeisRMB650,000(includingtax),andtheinternalcontrolauditfeeisRMB228,000(includingtax).IX.SituationofFacingListingSuspensionandListingTerminationaftertheDisclosureoftheYearlyReport
□Applicable√NotapplicableX.RelevantMattersofBankruptcyReorganization
□Applicable√NotapplicableNoneXI.MattersofImportantLawsuitandArbitration
√Applicable□Notapplicable
| Basicsituationoflitigation(arbitration) | Amountinvolved(Tenthousandyuan) | Whethertoformestimatedliabilities | Litigation(arbitration)progress | Litigation(arbitration)trialresultsandimpact | Implementationoflitigation(arbitration)judgments | Disclosuredate | Disclosureindex |
| FordetailsoftheCompany'smattersrelatedtoarbitrationandcompensationofitssubsidiaries'2019annualperformancecommitments,pleasereferto | 24,478.38 | No | Thearbitrationcasewasheardat9:30onDecember1,2020intheSeventh | (I)Trialresult:JinjiangGroupisexemptedfromtheperformancecompensationobligationin2019,anddoesnotneedtopaythe | Ruled | March30,2021 | Fordetails,pleaserefertothecompany'sdisclosureonMarch30,2021.(.（http://www.cninfo.com.cn） |
| "XVII.Majormattersofitssubsidiaries"in"SectionVIImportantMatters". | ArbitrationTribunaloftheArbitrationInstituteinShenzhenStockExchange,andthearbitrationtribunalmadearulingonthiscaseonMarch25,2021. | compensationfortheperformancedifferencein2019ofRMB244,783,800toSAPOPhotoelectric;ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000inthiscaseshallbebornebyJinjiangGroup;OtherarbitrationrequestsofJinjiangGrouparenotsupported.Thisawardshallbefinalandtakelegaleffectfromthedateitismade.(II)Impact:Thisarbitrationshallbefinal,andtheresultofthearbitrationwillnotaffecttheprofitandlossoftheCompanyortheproductionandoperationofSAPOPhotoelectric.TheCompanyandJinjiang | （AnnouncementNo.:2021-29) |
XII.SituationofPunishmentandRectification
□Applicable√Notapplicable
NoneXIII.CreditConditionoftheCompanyanditsControllingShareholdersandActualControllers
√Applicable□NotapplicableNosuchcasesintheReportingPeriod.XIV.Materialrelatedtransactions
1.Relatedtransactionsinconnectionwithdailyoperation
□Applicable√NotapplicableNone
2.Related-partytransactionsarisingfromassetacquisitionorsale
□Applicable√NotapplicableNone
3.Related-partytransitionswithjointinvestments
□Applicable√Notapplicable
None
4.Creditsandliabilitieswithrelatedparties
□Applicable√NotapplicableNone
5.Transactionswithrelatedfinancecompany,especiallyonethatiscontrolledbytheCompany
□Applicable√NotapplicableNone
6.TransactionsbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties
□Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties.
7.Othersignificantrelated-partytransactions
□Applicable√NotapplicableNoneXV.Significantcontractsandexecution
1.Entrustments,contractingandleasing
（1）Entrustment
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
（2）Contracting
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
（3）Leasing
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
2.SignificantGuarantees
√Applicable□Notapplicable
InRMB10,000
| GuaranteeoftheCompanyforthecontrollingsubsidiaries(Excludecontrolledsubsidiaries) | ||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) |
| Guaranteeofthecompanyforitssubsidiaries | ||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) |
| SAPOPhotoelectric | March18,2020 | 48,000 | September8,2020 | 40,912.74 | Guaranteeingofjointliabilities | Twoyearsfromthedateofexpirationoftheprincipaldebt | No | No | ||
| Totalofguaranteeforsubsidiariesapprovedintheperiod(B1) | 0 | Totalofactualguaranteeforsubsidiariesintheperiod(B2) | 20,353.14 | |||||||
| Totalofguaranteeforsubsidiariesapproved | 48,000 | Totalofactualguaranteefor | 40,912.74 | |||||||
| atperiod-end(B3) | subsidiariesatperiod-end(B4) | ||||||||||
| Guaranteeofthesubsidiariesforthecontrollingsubsidiaries | |||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) | |
| TheCompany’stotalguarantee(i.e.totalofthefirstthreemainitems) | |||||||||||
| Totalguaranteequotaapprovedinthereportingperiod（A1+B1+C1） | 0 | Totalamountofguaranteeactuallyincurredinthereportingperiod（A2+B2+C2） | 20,353.14 | ||||||||
| Totalguaranteequotaalreadyapprovedattheendofthereportingperiod（A3+B3+C3） | 48,000 | Totalbalanceoftheactualguaranteeattheendofthereportingperiod（A4+B4+C4） | 40,912.74 | ||||||||
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4）% | 14.52% | ||||||||||
| Including： | |||||||||||
| Amountofguaranteesprovidedforshareholders,theactualcontrollerandtheirrelatedparties(D) | 0 | ||||||||||
| Amountofdebtguaranteesprovideddirectlyorindirectlyforentitieswithaliability-to-assetratioover70%(E) | 0 | ||||||||||
| Portionofthetotalguaranteeamountinexcessof50%ofnetassets(F) | 0 | ||||||||||
| Totalamountofthethreekindsofguaranteesabove(D+E+F) | 0 | ||||||||||
Descriptionoftheguaranteewithcomplexmethod
None
3.SituationofEntrustingOthersforManagingSpotAsset
(1)SituationofEntrustedFinance
√Applicable□NotapplicableOverviewofentrustedwealth-managementduringthereportingperiod
InRMB10,000
| Specifictype | Sourceoffundsforentrustedfinancialmanagement | TheOccurredAmountofEntrustedWealth-management | Unduebalance | Amountoverdue | Un-recoveredofoverdueamount |
| Other | Selffund | 58,654.07 | 0 | 0 | 0 |
| Total | 58,654.07 | 0 | 0 | 0 | |
Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal
√Applicable□Notapplicable
InRMB10,000
| NameofTrusteeOrganization(orTrusteeName) | TypeofTrusteeOrganization(orTrustee) | ProductType | Amount | CapitalSource | StartDate | ExpiryDate | FundsAllocation | MethodofRewardDetermination | ReferenceAnnualizedRateofReturn | ExpectedIncome(ifany) | Actualprofitandlossduringthereportingperiod | Theactualrecoveryofprofitandlossduringthereportingperiod | Amountofprovisionforimpairment(ifany) | Whetherpassedthestatutoryprocedure | Whetherthereisanyentrustedfinancialplaninthefuture | Summaryofeventsandrelatedsearchindex(ifany) |
| SouthernAssetsManagementCo.,Ltd. | Fund | Monetaryfund | 58,654.07 | Selffund | September8,2020 | December31,2021 | Other | RedemptiononTday,arrivalonT+1day | 2.54% | 451.91 | 451.91 | Notexpired | Yes | Notapplicable | ||
| Total | 58,654.07 | -- | -- | -- | -- | -- | -- | 451.91 | 451.91 | -- | -- | -- | -- | |||
Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment
□Applicable√Notapplicable
(2)SituationofEntrustedLoans
□Applicable√Notapplicable
None
4.Othersignificantcontract
√Applicable□Notapplicable
| CompanyNameofthePartyMakingthecontract | CompanyNameoftheOtherPartyoftheContract | ContractObject | ContractSigningDate | BookValueoftheAssetsInvolvedbytheContract(Tenthousandyuan) | AssessedValueoftheAssetsInvolvedbytheContract(Tenthousandyuan) | AppraisalAgencyName(IfAny) | BaseDateofAssessment(ifany) | PricingPrinciple | TransactionPrice(Tenthousand) | WhetherARelatedTraction | ConnectionRelation | ExecutionConditionAsOfTheEndOfTheReportingPeriod | DateofDisclosure | DisclosureIndex |
| SAPOPhotoelectric | HangzhouJinjiangGroupCo.,Ltd.,KunshanZhiqimeiMaterialTechnologyCo.,Ltd.,JapanNittoDenkoCorporation | NittoDenkoprovidespolarizermanufacturingtechnologyandrelatedcorporation. | November6,2017 | No | Consideringtheformulationofmarketpriceandtechnicalserviceperiod,thefinaltransactionpriceis | 86,900 | No | Withnoassociationrelationshipwiththecompany | Innormalperformance | November7,2017 | Http://www.cninfo.com.cn:(AnnouncementNo.:2017-53)onNovember7,2017 |
XVI.Explanationonothersignificantevents
√Applicable□Notapplicable
1.Progressofpolarizerindustrializationprojectforultra-largeTV(Line7)Duringthereportingperiod,theCompanystrengthenedstaffingandresourcesupport,overcametheadverseeffectscausedbythepandemic,acceleratedtheprogressofchemicaltestrunofLine7project,andfinallycompletedtheperformancestabilitytestrunandstartedtrialproductionrampupinJuly2021.AsofDecember31,2021,Line7wasinthestageofcapacityrampup,themaintechnicalindicatorssuchasspeedandyieldwerecontinuouslyimproved,andtheintroductionofmajorcustomerproductswasprogressingsteadily,layingasolidfoundationfortherapidincreaseofoversizedordersin2022andtherealizationofproductionlineprofitability.
OnMarch16,2021,allthefundsraisedfromthespecialaccountforraisingfundsofLine7projecthavebeenusedupaccordingtoregulations,andthecompanyhascanceledthespecialaccountforraisingfunds.Fordetails,pleaserefertoAnnouncementNo.:2021-30ofcninfo(http://www.cninfo.com.cn).
AsofDecember31,2021,theaccumulatedsignedcontractamountofLine7projectwasRMB2,091.2441million,andtheactualpaymentwasRMB2,017.5184million(withraisedfundsofRMB409.9535million,anditsownfundsandgovernmentfundsofRMB1,607.5649million).
2.RegardingtheinvestmentintheconstructionoftheRTSrearcuttingproductionlineDuringthereportingperiod,thecompanyaddedinvestmentintheconstructionofacuttingproductionlinefortherearendoftheRTSaftercarefulevaluation.Thetotalinvestmentwascontrolledat30millionyuan,andthesourceoffundswasitsownfundsandbankloans.Themainreasonsforthisinvestment:First,tomeettheneedsofdownstreampanelcustomers,increasethedepthofcustomercooperation,andseizethemarketshareofhigh-marginlarge-sizeproducts;second,toimprovetheoverallcuttingcapacityofthebackend;third,tosimplifytheproductionprocessandimproveproductionefficiency.reducemanufacturingcost.AsofDecember31,2021,TheCompanyisbuilding2RTPproductionlines,oneofwhichhasbeenputintomassproduction,andtheotheroneissubjecttomassproductionramp-up;2RTSproductionlineshavebeenbuilt，and1RTSproductionlineisunderconstruction.Itisexpectedtoachievemassproductionbeforethefirstquarterof2022.
3.ThedisposalofassetsofthejointventurecompanyXieliAutomobilemobileCo.,Ltd.ShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isa
Sino-foreignjointventureinvestedandestablishedbythecompanyandHongKongXieliMaintenanceCompanyin1981,witharegisteredcapitalof3.12millionyuan,andthecompanyholds50%oftheequity.Thecompany'soperatingperiodendedin2008,anditsbusinesslicensewasrevokedin2014.Thecompany'smainassetisrealestate.TheindustrialandcommerciallicenseofShenzhenXieliwascancelledinMarch2020,buttherearestillthreepropertiesunderitsname,thedisposalofwhichisrequiredtoberesolvedafterfurtherconsultationbetweentheshareholdersofbothparties.OnJuly26,2021,theCompanyfiledalawsuitwithYantianDistrictPeople'sCourtinShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulationonMarch9,2020,onwhichthecourtgaveajudgmentonNovember21,2021torevokethecancellationofShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulation.
XVII.SignificanteventofsubsidiaryoftheCompany
√Applicable□Notapplicable
1.Mattersconcerningthecompany'scompensationforarbitrationanditssubsidiaries'annualperformancecommitmentsin2019OnMarch9,2020,thecompanyreceivedtheNoticeofArbitration(No.452-2)fromShenzhenInternationalArbitrationCourtandtheApplicationforArbitrationsubmittedbyHangzhouJinjiangGroupCo.,Ltd.,whichistheapplicantofthisarbitrationwhilethecompanyistherespondent.HangzhouJinjiangGroupCo.,Ltd.submittedthefollowingarbitrationrequests:1.TherulingmadethefollowingchangestotheCooperationAgreement:(1)DeletetheoriginalArticle3.1oftheCooperationAgreementandtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled(2)DeletetheoriginalArticle6.4oftheCooperationAgreement,andtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled;2.Therespondentshallbearthearbitrationfeeofthecaseandtheactualexpensesofthearbitraltribunal.Theapplicantreservestherighttofurthermodifythearbitrationrequest.Fordetails,pleaserefertotheAnnouncementof2020-07onthewebsiteofhttp://www.cninfo.com.cn.OnMarch26,2020,thecompanyreceivedtheNoticeonExtendingtheTimeLimitAppointedbyArbitrators(2020SGZSNo.452-3)deliveredbyShenzhenInternationalArbitrationCourt.Duetothecomplexityofthedisputeandthespecialepidemicbackground,theapplicantneedsextratimetonegotiateandcommunicatetheproceduralmattersofthecasewiththerespondent,soitappliestoShenzhenInternationalArbitrationCourttoextendthetimelimitforappointingarbitratorsinthiscase.ShenzhenInternationalArbitrationCourtbelievesthattheapplicant'srequestisreasonable,andbothpartiesarerequestedtonotifyShenzhenInternationalArbitrationCourtinwritingofthearbitrator'sappointmentresultbeforeMarch30,2020.Therefore,thecompanyshallappointanarbitratorbeforeMarch30,2020insteadofwithin15daysafterreceivingthearbitrationnoticeonMarch9,2020,andnotifytheShenzhenInternationalArbitrationCourtoftheresultsinwriting.Fordetails,pleaserefertotheAnnouncementof2020-21onthewebsiteofhttp://www.cninfo.com.cn.
OnApril17,2020,thecompanyreceivedtheNoticeofArbitralTribunalComposition(2020SGZSNo.452-4)fromShenzhenInternationalArbitrationCourt.BothpartiestothearbitrationinformedShenzhenInternationalArbitrationCourtinwritingoftheresultsofarbitratorselectionaccordingtothearbitrationprocedurebeforeMarch30,2020,andappointed1arbitratorrespectivelyand1chiefarbitratortogether.OnApril16,2020,thearbitrationtribunalwasformedtohearthecase.OnDecember1,2020,thearbitrationcasewasheardintheSeventhArbitrationTribunaloftheCourtofArbitrationlocatedattheShenzhenStockExchange.OnMarch25,2021,thecompanyreceivedtheAward(2020SGZCNo.452)deliveredbythearbitraltribunal,andmadearulingonthiscase:1.Theapplicantwasexemptedfromfulfillingthe2019annualperformance
compensationobligationstipulatedinArticle3.1oftheCooperationAgreement,anddoesnotneedtopaySAPOPhotoelectricthecompensationforthedifferenceinperformancein2019ofRMB244,783,800;2.ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000shallbebornebytheapplicant;3.Theapplicant'sotherarbitrationrequestsarenotsupported.Thisawardisfinalandshallcomeintoforceasofthedateofitsmaking.Thisarbitrationisthefinalaward,andtheawardresultwillnotaffectthecompany'sprofitandloss,norwillitaffecttheproductionandoperationofSAPOPhotoelectric.ThecompanyandJinjiangGroupwillcontinuetoactivelyperformtheirshareholders'dutiesbasedontheprincipleofmutualbenefitandwin-win,andeffectivelyimprovetheproductiontechnology,managementlevelandprofitabilityofSAPOPhotoelectric.Fordetails,pleaserefertotheAnnouncementonArbitrationResultsoftheCompanyonJuchaoInformationNetwork(http://www.cninfo.com.cn)(No.2021-29).
2.ProgressinsubsidiariesparticipatingintheestablishmentofindustrialfundsOnNovember16,2017,thecompany'scontrollingsubsidiarySAPOPhotoelectricsignedtheChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)AgreementwiththefundmanagerHuizhiInvestmentManagementCo.,Ltd,generalpartnerJinxinInvestmentCo.,Ltdandotherlimitedpartners,andco-sponsoredtheestablishmentofanindustrialfund,focusingontheopticalfilmindustrychainrelatedprojectsrelatedtothecompany'smainbusiness,withafundsizeof50millionyuan.SAPOPhotoelectric,asoneofthelimitedpartnersoftheindustrialfund,subscribedforacapitalcontributionof28.5millionyuan.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2017--55).
OnFebruary10,2018,ChangxingJunyingEquityInvestmentPartnershipcompletedtheindustrialandcommercialregistrationandcompletedtheprivateequityinvestmentfundregistrationonFebruary8,2018.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2018--05).AsofDecember31,2021,ChangxingJunyinghadaccumulated3investmentprojectswithatotalinvestmentof42millionyuan.
| No | Name | Investment | Fundcontribution（RMB10,000） |
| 1 | ShenzhenKaichuangShijiaTechnologyCo.,Ltd. | OpticalFilm | 1,400 |
| 2 | ShenzhenShenfuyuElectronicTechnologyCo.,Ltd. | OpticalFilm | 1,300 |
| 3 | ShenzhenHengbaoshunTechnologyDevelopmentCo.,Ltd. | OpticalFilm | 1,500 |
3,Mattersconcerningthesubsidiary'saccreditationbyGuangdongEngineeringTechnologyResearchCenterOnAugust20,2021,theGuangdongProvincialDepartmentofScienceandTechnologyissuedthe"NoticeoftheGuangdongProvincialDepartmentofScienceandTechnologyonRecognizingthe2021GuangdongEngineeringTechnologyResearchCenter"(YueKeHanSanZi[2021]No.1021),accordingtotheresultsofexpertreview,the"GuangdongProvinceShengboOptoelectronicsEngineeringTechnologyResearchCenterintheFieldofNewMaterials"builtbythecompany'sholdingsubsidiaryShengboOptoelectronicswasidentifiedasthe"2021GuangdongEngineeringTechnologyResearchCenter".Thisrecognitionfullyaffirmsthecompany'sstrongtechnologicalinnovationandR&Dstrength,demonstratesthecompany'ssignificantadvantagesintechnologicalinnovation,technologyresearchanddevelopmentandtalentteamsinthefieldofpolarizers,andhelpsthecompanytocontinuouslyimprovethelevelofscientificresearchandscientificandtechnologicalachievements.Theabilitytotransformandenhancethecompany'smarketcompetitiveadvantageistheembodimentofthecompany'scomprehensivestrength.Thecompanywillcontinuetobuildtheresearchcenter,combinethecompany'sbusinessstrategy,deepenindustry-university-researchcooperation,cultivatescientificandtechnologicalinnovationtalents,vigorouslypromotetechnologicalinnovation,andprovideafavorableplatformsupportforpromotingthehigh-qualitydevelopmentofthepolarizerbusiness.
4.MattersonthelistingandleasingofsomepropertiesinBlockCofShenzhenTextileBuildingOnJuly13,2021,thecompanyheldthefifthmeetingoftheeighthboardofdirectorstoreviewandapprovetheProposalonListingandLeasingSomePropertiesinBlockCofShenzhenTextileBuilding,andagreedthatthecompanywillpubliclylistandlease6,100squaremetersofpropertiesofthe8F-10Fand1FlobbyofBlockCofShenzhenTextileBuildingthroughShenzhenUnitedPropertyandShareRightsCo.,Ltd.,withaleasetermof10years(includingarent-freeperiodof6months),andtherentalpriceisnotlowerthan85yuan/㎡/month(includingpropertymanagementfee).Therentwillincreaseby5%everythreeyearsfromthedateofcontractconclusion,andthefinaltransactionpricewillbedeterminedaccordingtothelistingresult.Fordetails,pleaserefertotheAnnouncementofResolutionsoftheFifthMeetingoftheEighthBoardofDirectorsofthecompany(No.2021-44)onJuchaoInformationNetwork(http://www.cninfo.com.cn).
OnSeptember18,2021,theCompanyreceivedtheNoticeofLeaseResultfromShenzhenUnitedPropertyandEquityExchangeCo.,Ltd.,confirmingthatthelesseewasShenzhenHaizhiguangHotelManagementLTD,withaleasetermof10years(including6monthsrent-freeperiod),atatransactionpriceof86yuan/m
/month(includingpropertymanagementfee),andtherentwillincreaseby5%everythreeyearssincethesigningofthecontract;OnSeptember17,2021,theCompanysignedthecontractwiththelessee,andthefollow-upleasedpropertywasplannedtobeusedfortheoperationofAtourHotel.
RegardingpartialpremisesinBlockCofShenzhenTextileBuildingforleasethistime,itwilltransferthemarketriskfromself-operatedhotelstobrandhoteloperatorsthroughoverallexternallease,whichwillhelpimprovetheoveralloperationalefficiencyoftheCompany'sassets,reduceoperationalrisks,bringstablerentalincometotheCompanyandhelptomaintainandincreasethevalueofstate-ownedassets.5.MattersonliquidationandcancellationofShenzhenTextileImport&ExportCo.,Ltd.OnJuly13,2021,thecompanyheldthefifthmeetingoftheeighthboardofdirectorstoreviewandapprovetheProposalonLiquidationandCancellationofShenzhenTextileImport&ExportCo.,Ltd.,andagreedontheLiquidationReportofShenzhenTextileImport&ExportCo.,Ltd..completedbytheliquidationgroup,andliquidatedanddistributeditsassetsinaccordancewithlegalprocedures,andcompletedformalitiessuchasindustrialandcommercialcancellation.TheliquidationandcancellationofShenzhenTextileImport&ExportCo.,Ltd.(hereinafterreferredtoas"ShenzhenTextileImport&Export")willchangethescopeofthecompany'sconsolidatedfinancialstatements,facilitatethedisposalofinefficientassets,reducemanagementcosts,andwillnotaffectthecompany'sproductionandoperation.TheimpactofthecancellationofShenzhenTextileImport&ExportinthisliquidationonthecurrentprofitsandlossesisestimatedtobeRMB7.64million,Theannualauditoftheauditinstitutionhasbeenconfirmed.Fordetails,pleaserefertotheAnnouncementonLiquidationandCancellationofShenzhenTextileImport&Export.(No.2021-45)issuedbyJuchaoInformationNetwork(http://www.cninfo.com.cn).
6.Mattersonwaiverofpreemptionrightandequitytransferofholdingsubsidiaries
OnNovember27,2020,thecompanyreceivedthe"Letter"sentbyJinjiangGroup,informingthecompanyinwritingthatitintendstoacquirethe40%equityofSAPOPhotoelectricheldbyHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership)(hereinafterreferredtoas"JinhangInvestment");OnDecember21,2020,thecompanyreceivedtheNoticeofEquityTransferfromJinhangInvestment,informingthecompanyinwritingthatJinhangInvestmentintendstotransferits40%equityofSAPOPhotoelectric,andaccordingtotheCompanyLawofthePeople'sRepublicofChinaandtheArticlesofAssociationofShenzhenSAPOPhotoelectricTechnologyCo.,Ltd.,itspeciallysoughtthecompany'sopinionsonthetransfermatters.
OnDecember25,2020,afterresearchanddecision-making,thecompanyformallyrepliedtoJinhangInvestment,andthecompanygaveupthepreemptiverighttoexercisethe40%equityofSAPOPhotoelectric,the
holdingsubsidiaryofthecompanyheldbyJinhangInvestment.Fordetails,pleaserefertotheAnnouncementonWaiverofPreemptiveRightsofHoldingSubsidiaries(No.2020-57)onJuchaoInformationNetwork(http://www.cninfo.com.cn)onDecember26,2020.InJuly2021,thecompanyreceivedtheLetterfromJinjiangGroup,informingthecompanyabouttheprogressoftheabove-mentionedequitytransfer:JinhangInvestmentandtheintendedtransfereeSuzhouAdvantageFordInvestmentCenter(LimitedPartnership)(hereinafterreferredtoas"AdvantageFord")havecompletedtheirinternaldecision-makingexaminationandapproval,andthedeliveryconditionsforAdvantageFordtoaccept100%ofthepartnershipshareofJinhangInvestmenthavebeenmet,andbothpartieswillpromotethetransferofthepartnershipshare.Afterthecompletionofthetransferprocedure,AdvantageFordwilldirectlyhold
99.93333%ofthepartnershipshareofJinhangInvestment;Meanwhile,ZhejiangHengjieIndustrialCo.,Ltd.indirectlyholdsapartnershipshareof0.06667%ofJinhangInvestment.AsofJuly28,2021,fortheaboveequitytransfer,theindustrialandcommercialchangeregistrationprocedureshavebeencompleted.Afterthecompletionofthisequitytransfer,theshareholdersandequityratioofSAPOPhotoelectric,theholdingsubsidiaryofthecompany,remainunchanged,andthescopeoftheconsolidatedstatementsofthecompanyhasnotchanged.AdvantageFordholds40%equityofSAPOPhotoelectricthroughJinhangInvestment,andthestrategicinvestorofSAPOPhotoelectricwillbechangedfromJinjiangGrouptoAdvantageFord.AdvantageFordhasrichindustrialresources,industrialinvestmentandmanagementexperience,andbothpartieswillgivefullplaytotheirrespectiveadvantagestofurtherimproveandstrengthenthemainbusinessofpolarizer.Fordetails,pleaserefertotheProgressAnnouncementonWaiverofPreemptiveRightsandEquityTransferofHoldingSubsidiaries(No.2021-47)onJuchaoInformationNetwork(http://www.cninfo.com.cn).
VII.ChangeofsharecapitalandshareholdingofPrincipalShareholders
I.Changesinsharecapital
(1)Changesinsharecapital
Inshares
| Beforethechange | Increase/decrease（+，-） | AftertheChange | |||||||
| Amount | Proportion | Shareallotment | Bonusshares | Capitalizationofcommonreservefund | Other | Subtotal | Quantity | Proportion | |
| 1.Shareswithconditionalsubscription | 1,326,405 | 0.26% | 0 | 0 | 0 | -1,254,405 | -1,254,405 | 72,000 | 0.00% |
| 1.State-ownedshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.State-ownedlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Otherdomesticshares | 1,326,405 | 0.26% | 0 | 0 | 0 | -1,254,405 | -1,254,405 | 72,000 | 0.00% |
| Incl：Domesticlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| DomesticNaturalPersonshares | 1,326,405 | 0.26% | 0 | 0 | 0 | -1,254,405 | -1,254,405 | 72,000 | 0.00% |
| 4.Foreignshare | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Incl：Foreignlegalpersonshare | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| ForeignNaturalPersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II.Shareswithunconditionalsubscription | 506,445,874 | 99.74% | 0 | 0 | 0 | 3,975 | 3,975 | 506,449,849 | 1.00% |
| 1.CommonsharesinRMB | 457,017,874 | 90.00% | 0 | 0 | 0 | 3,975 | 3,975 | 457,021,849 | 0.90% |
| 2.Foreignsharesindomesticmarket | 49,428,000 | 9.74% | 0 | 0 | 0 | 0 | 0 | 49,428,000 | 0.10% |
| 3.Foreignsharesinforeignmarket | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.Totalofcapitalshares | 507,772 | 100.00 | 0 | 0 | 0 | -1,250,4 | -1,250,4 | 506,52 | 100.00 |
| ,279 | % | 30 | 30 | 1,849 | % |
Reasonsforsharechanged
√Applicable□NotapplicableThecompany’sperformancein2020didnotmeettheconditionsforthereleaseofthesecondsalerestrictionperiodstipulatedinthe2017RestrictedStockIncentivePlan,accordingtothecompany’sRestrictedStockIncentivePlanin2017,ChapterVIIIoftherestrictedstockgrantconditionsAndtheconditionsforliftingthesalesrestriction,Iftheconditionsforliftingthesalesrestrictioninthecurrentperiodarenotmet,thecompanywillrepurchasetherestrictedstocksthatcanbereleasedforthecurrentyearandcanceltheminaccordancewiththeprovisionsofthisplan.Thesecondphaseheldbythecompanyfor102incentiveobjectsThe1,236,480restrictedstocksthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.Secondly,thecompany'soriginalincentiveobjectJiangShengyuanleftduetopersonalreasons,.AccordingtotherelevantprovisionsoftheIncentivePlan(Draft),theabove-mentionedpersonnelnolongermeettheincentiveconditions,andthecompanyshallrepurchaseandcancelthe7，950restrictedstocksthathavebeengrantedbutnotyetlifted.Thirdly,thecompany’soriginalincentiveobject,MuLinying,retires.Accordingtothecompany’s"2017RestrictedStockIncentivePlan",thispersonnolongermeetstheincentiveconditions,andthecompanyhasgranted6,000restrictedstocksthathavenotbeenlifted.Cancellationofrepurchase.Insummary,atotalof1,250,430restrictedstockswererepurchasedandcancelled.Fordetails,pleaserefertothe"AnnouncementonRepurchaseandCancellationofCertainRestrictedStocks"(No.2021-03and2021-25,2021-30)ofthecompanyonwww.cninfo.com.cn.OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2021--35).Inaddition,ZhangXiaodong,theformeremployeesupervisorofthecompany,resignedonFebruary10,2021,andhis1,325unrestrictedshareswereconvertedintorestrictedshares.OnAugust11,2021,thesalesrestrictionswere
lifted,andtheywereconvertedintounrestrictedshares.
ApprovalofChangeofShares
√Applicable□NotapplicableTheaboverepurchaseandcancellationofsomerestrictedstockswereapprovedbythe35thmeetingoftheseventhBoardofDirectorsofthecompany,the25thmeetingoftheseventhBoardofSupervisors,thefirstprovisionalshareholders'generalmeetingof2021,thesecondmeetingoftheeighthBoardofDirectors,thesecondmeetingoftheeighthBoardofSupervisors,andtheannualshareholders'generalmeetingofs2020.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2021--01，2021-02，2021-11，2021-17，2021-18and2021-31).Ownershiptransferofsharechanges
√Applicable□NotapplicableRegardingthetransferoftheaboverestrictedstocks,PekingCertifiedPublicAccountants(specialgeneralpartnership)verifiedsomerestrictedstockscancelledbytheaboverepurchaseandissuedthecapitalverificationreportQXYZ/20210013.OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2021--35).InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
√Applicable□Notapplicable
AftertheCompanyrepurchasedandcancelledsomerestrictedstocks,thetotalcapitaloftheCompanywaschangedfrom507,772,279sharesto506,521,849shares.TheimpactofthissharechangeontheCompany'sfinancialindicatorssuchasbasicearningspershareanddilutedearningspershare,netassetspershareattributabletothecompany'scommonshareholdersinthelatestyearandperiodisasfollows:
| Items | 2020 | 2021 | |
| Accordingtotheoriginalcapital | Accordingtothenewcapital | Accordingtothenewcapital | |
| Basicearningspershare(yuan/share) | 0.07 | 0.07 | 0.12 |
| Dilutedearningspershare | 0.07 | 0.04 | 0.08 |
| Netassetspershare | 5.45 | 5.46 | 5.56 |
Otherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
(2)Changeofshareswithlimitedsalescondition
InShares
| ShareholderName | InitialRestrictedShares | NumberofUnrestrictedSharesThisTerm | NumberofIncreasedRestrictedSharesThisTerm | RestrictedSharesintheEndoftheTerm | ReasonforRestrictedShares | DateofRestrictionRemoval |
| ZhangXiaodong | 3,975 | 1,325 | 5,300 | 0 | Supervisorsshallnottransfertheirsharesinthecompanywithinthehalfyearafterresignation | August11,2021 |
| Total | 3,975 | 1,325 | 5,300 | 0 | -- | -- |
II.Securitiesissueandlisting
1.ExplanationoftheSituationoftheSecurityIssue(NoPreferredShares)intheReportPeriod
□Applicable√Notapplicable
2.Changeofassetandliabilitystructurecausedbychangeoftotalcapitalsharesandstructure
√Applicable□NotapplicableFordetails,pleasereferto"XI.ImplementationoftheCompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures1.Equityincentive"in"SectionIVCorporateGovernance"ofthisreport.
3.Abouttheexistingemployees’shares
□Applicable√NotapplicableIII.Shareholdersandactualcontrollingshareholder
1.Numberofshareholdersandshareholding
InShares
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 25,021 | Totalshareholdersattheendofthemonthfromthedateofdisclosingtheannualreport | 24,982 | Thetotalnumberofpreferredshareholdersvotingrightsrestoredatperiod-end(ifany)(Note8) | 0 | Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed(ifany)(Note8) | 0 | ||||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | |||||||||||||||
| Shareholders | Natureofshareholder | Proportionofsharesheld（%） | Numberofsharesheldatperiod-end | Changesinreportingperiod | Amountofrestrictedsharesheld | Amountofun-restrictedsharesheld | Numberofsharepledged/frozen | ||||||||
| Stateofshare | Amount | ||||||||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | State-ownedlegalperson | 46.21% | 234,069,436 | 0 | 234,069,436 | ||||||||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | State-ownedLegalperson | 3.18% | 16,129,032 | 0 | 16,129,032 | ||||||||||
| SunHuiming | DomesticNatureperson | 1.19% | 6,008,653 | 2,783,886 | 6,008,653 | ||||||||||
| DengYan | DomesticNatureperson | 0.99% | 4,993,800 | 2,716,100 | 4,993,800 | ||||||||||
| SuWeipeng | DomesticNatureperson | 0.56% | 2,823,066 | 0 | 2,823,066 | Pledge | 2,800,000 | |
| MaoYuxia | DomesticNatureperson | 0.55% | 2,792,400 | 2,792,400 | 2,792,400 | |||
| ChinaConstructionBank-CindaAustraliaBankNewEnergyIndustryEquitySecuritiesInvestmentFund | Other | 0.49% | 2,477,720 | 2,477,720 | 2,477,720 | |||
| QiJianhong | DomesticNatureperson | 0.44% | 2,218,800 | 920,100 | 2,218,800 | |||
| LiZengmao | DomesticNatureperson | 0.41% | 2,082,997 | 484,200 | 2,082,997 | |||
| ZhangMuxiu | DomesticNatureperson | 0.36% | 1,808,800 | 1,808,800 | 1,808,800 | |||
| Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)（SeeNotes3） | None | |||||||
| Explanationonshareholdersparticipatinginthemargintradingbusiness | Amongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany. | |||||||
| Aboveshareholdersentrustingorentrustedwithvotingrights,orwaivingvotingrights | None | |||||||
| Top10shareholdersincludingthespecialaccountforrepurchase(ifany)(seenote10) | None | |||||||
| Shareholdingoftop10shareholdersofunrestrictedshares | ||||||||
| Nameoftheshareholder | Quantityofunrestrictedsharesheldattheendofthereportingperiod | Sharetype | ||||||
| Sharetype | Quantity | |||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | 234,069,436 | CommonsharesinRMB | 234,069,436 | |||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | 16,129,032 | CommonsharesinRMB | 16,129,032 |
| SunHuiming | 6,008,653 | Foreignsharesindomesticmarket | 6,008,653 |
| DengYan | 4,993,800 | CommonsharesinRMB | 4,993,800 |
| SuWeipeng | 2,823,066 | CommonsharesinRMB | 2,823,066 |
| MaoYuxia | 2,792,400 | CommonsharesinRMB | 2,792,400 |
| ChinaConstructionBank-CindaAustraliaBankNewEnergyIndustryEquitySecuritiesInvestmentFund | 2,477,720 | CommonsharesinRMB | 2,477,720 |
| QiJianhong | 2,218,800 | CommonsharesinRMB | 2,218,800 |
| LiZengmao | 2,082,997 | CommonsharesinRMB | 2,082,997 |
| ZhangMuxiu | 1,808,800 | CommonsharesinRMB | 1,808,800 |
| Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders | Amongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany. | ||
| Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4) | None | ||
Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod.
□Yes√NoThetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.
2.ControllingshareholderNatureofControllingShareholders:LocalstateholdingType:Legalperson
| NameoftheControllingshareholder | Legalrepresentative/Leader | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| ShenzhenInvestmentHoldingsCo.,Ltd. | HeJianfeng | October13,2004 | 76756642-1 | Investmentandacquisitionoffinancialandsimilarfinancialstockrightssuchasbank,security,insurance,fundandguarantee;Engageinrealestatedevelopmentandmanagementbusinesswithinthelimitoflegally-acquiredlanduseright;Carryoutinvestmentandserviceinthefieldofstrategicemergingindustry;Carryoutinvestment,operationandmanagementofstate-ownedstocksofwholly-owned,holdingandjoint-stockcompanybyreorganization&integration,capitaloperationandassetdisposal;OtherbusinessesundertakenbyauthorizationofmunicipalSASAC(StateAssetSupervisionandAdministrationCommission)(Iftheabovebusinessscopeneedstobeapprovedaccordingtonationalregulations,thebusinesscanonlybeoperatedaftertheapprovalisobtained) |
| Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiod | ShenPropertyA（000011），Quantityofshares301.41million，Shareholdingratio：50.57%；SPGA（000029），Quantityofshares578.6million，Shareholdingratio：57.19%；ShenUniverseA（000023），Quantityofshares9.59million，Shareholdingratio：6.91%；Pingan（601318），Quantityofshares962.72million，Shareholdingratio：5.27%；GuosenSecurities（002736），Quantityofshares3,223.11million，Shareholdingratio：33.53%；GuotaiJunan（601211），QuantityofAshares609.43million，QuantityofHshares103.37million，Totalshareholdingratio：8.00%；TellingHolding（000829），Quantityofshares195.03million，Shareholdingratio：19.03%；ShenzhenInternational（00152），Quantityofshares985.64million，Shareholdingratio：43.48%；BeautyStar（002243），Quantityofshares604.82million，Shareholdingratio:49.96%；HopewellHighway（00737），Quantityofshares2,213.45million，Shareholdingratio:71.83%；Infinova（002528），Quantityofshares315.83million,Shareholdingratio:26.35%；EternalAsia（002183），Quantityofshares388.45million,Shareholdingratio:14.96%；ShenEnergy（000027)，Quantityofshares6.77million，Shareholdingratio:0.14%；BankCommunication（601328），Quantityofshares9.52million,Shareholdingratio:0.01%；TehanEcological（300197），Quantityofshares113.98million,Shareholdingratio:4.04%；ChinaVANKE（02202），Quantityofshares77.27million,Shareholdingratio:0.66%；ShenzhenWater（301038），Quantityofshares49.50million，Shareholdingratio:37.50%. | |||
Changesofcontrollingshareholderinreportingperiod
□Applicable√NotapplicableNochangesofcontrollingshareholderfortheCompanyinreportingperiod.3．InformationaboutthecontrollingshareholderoftheCompanyActualcontrollernature：LocalstateownedassetsmanagementActualcontrollertype：Legalperson
| Nameoftheactualcontroller | Legalrepresentative/Leader | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| State-ownedAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | WangYongjian | July30,2004 | K3172806-7 | Performingtheresponsibilitiesofinvestorsonbehalfofthestateandsupervisingandmanagingstate-ownedassetsaccordingtoauthorizationandlaw. |
| Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiod | Itdirectlyheld40.10%equityofShenzhenGas(601139);Itdirectlyheld21.93%equityofShenzhenZhenye(000006);Itdirectlyheld43.91%equityofShenzhenEnergy(000027); | |||
Changesofcontrollingshareholderinreportingperiod
□Applicable√NotapplicableNochangesofcontrollingshareholderfortheCompanyinreportingperiodBlockDiagramoftheownershipandcontrolrelationsbetweenthecompanyandtheactualcontroller
Theactualcontrollercontrolsthecompanybymeansoftrustormanagingtheassetsinotherway
□Applicable√Notapplicable
4.Thecumulativenumberofsharespledgedbythecontrollingshareholderorthelargestshareholderofthecompanyanditspersonactinginconcertaccountsfor80%ofthenumberofsharesheldbythecompany
□Applicable√Notapplicable
5.Particularsaboutotherlegalpersonshareholderswithover10%shareheld
□Applicable√Notapplicable
6.SituationofShareLimitationReductionofControllingShareholders,ActualControllers,RestructuringPartyandOtherCommitmentSubjects
□Applicable√Notapplicable
IV.Specificimplementationofsharerepurchaseduringthereportingperiod
Progressinimplementationofsharerepurchase
□Applicable√NotapplicableImplementationprogressofreducingrepurchasedsharesbycentralizedbidding
□Applicable√Notapplicable
VIII.SituationofthePreferredShares
□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod.
IX.CorporateBond
□Applicable√Notapplicable
X.FinancialReport
(1)Auditreport
| Typeofauditopinion | StandardUnqualifiedopinion |
| Dateofsignatureofauditreport | March15,2022 |
| Nameofauditfirm | GrantThorntonInternationalLtd.(SpecialGeneralPartnership) |
| Theauditreportnumber | ZiTongShenZi（2022）No.:441A002000 |
| NamesoftheCertifiedPublicAccountants | ChenZhifang,LiuDuoqi |
Auditors’Report
ToallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.：
I.OpinionWehaveauditedthefinancialstatementsofShenzhenTextile(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisethebalancesheetasatDecember31,2021,andtheincomestatement,thestatementofcashflowsandthestatementofchangesinowners'equityfortheyearthenendedandnotestothefinancialstatements.Inouropinion,theattachedfinancialstatementsareprepared,inallmaterialrespects,inaccordancewithAccountingStandardsforBusinessEnterprisesandpresentfairlythefinancialpositionoftheCompanyasatDecember31,2021anditsoperatingresultsandcashflowsfortheyearthenended.II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
(1)RecognitionofrevenuePleaserefertoNoteV,26andNoteVII,42tothefinancialstatementfordetailsoftherelevantinformationdisclosure.
1.Descriptionofmatters
TheoperatingincomeofShenzhenTextilein2021wasRMB2,293.7479million,ofwhichthemainbusinessincomewasRMB2,265.9906million,accountingfor98.79%.AsrevenueisoneofthekeyperformanceindicatorsofShenzhenTextile,thereisinherentriskthattheCompany'smanagementmanipulatesrevenuerecognitioninordertoachievespecificgoalsorexpectations,andsincethemainbusinessincomeislarge,weidentifyrevenuerecognitionasakeyaudititem.
2.ResponsetotheauditForrevenuerecognition,wemainlyimplementedthefollowingauditprocedures:
(1)Understand,evaluateandtestthedesigneffectivenessandoperationeffectivenessofinternalcontrolrelatedtosalesrevenuecycle;
(2)Obtainthemainsalescontractsaccordingtotheproductsandbusinesstypes,checktherelevantclausesrelatedtorevenuerecognition,andinterviewthemanagementtoevaluatewhethertherevenuerecognitionmeetstherequirementsofaccountingstandards;
(3)Implementanalyticalprocedures,comparethechangesofincomebetweenthisyearandlastyearaccordingtoproducttypes,observethefluctuationsofincomebetweenmonthsandthechangesofimportantcustomersinthisperiod,andanalyzetherationalityofincomechangesbasedonfactorssuchasthecompany'sproductioncapacity,marketexpansionandindustrytrends;
(4)Performdetailedteststocheckwhetherthebasisrelatedtosalesrevenuerecognitionissufficient,includingcheckingsalescontractsorperformingdetailedtests,includingcheckingsalescontractsororders,deliveryorders,customsdeclarationsandothersupportingdocuments,evaluatetheauthenticityandaccuracyofrevenuerecognition,andevaluatetheauthenticityandaccuracyofrevenuerecognition;
(5)Performcut-offtesttoevaluatewhetherincomeisrecordedintheproperaccountingperiod;
(6)Selectsamplesfrommajorcustomersonthisrecognitionprocedures,andperformalternativetestsonthenon-repliedpartstojudgetheauthenticityofsalesrevenue.
(2)InventoryfallingpricereservesPleaserefertoNoteV,12andNoteVII,8tothefinancialstatementfordetailsoftherelevantinformationdisclosure.
1.DescriptionofmattersAsofDecember31,2021,thebalanceofinventorydepreciationreserveofShenzhenTextileisRMB98.0359million.Astheinventorydepreciationreserveanditschangeshaveasignificantinfluenceonthefinancialstatements,thedeterminationofthenetrealizablevalueofinventoryinvolvesthemajorjudgmentandestimationofthemanagement,soweidentifytheinventorydepreciationreserveasakeyaudititem.
2.Responsetotheaudit
Theauditprocessimplementedforinventoryfallingpricereservesincludesmainly:
(1)Understand,evaluateandtestthedesignandoperationeffectivenessofinternalcontrolrelatedtoinventorydepreciationreserve;
(2)UnderstandandevaluatetheappropriatenessoftheCompany'saccrualpolicyforinventorydepreciationreserve;
(3)Understandandinquireaboutinventorystoragelocationandinventoryaccountingmethod,anddeterminethescopeofinventorysupervision;Implementinventorysupervisionprocedurestocheckwhethertheinventoryisdamaged,obsolete,outdated,defective,etc.;
(4)Obtaintheinventoryyear-endinventoryagelist,andcarryoutanalyticalreviewofinventoryageaccordingtothestatusofproductstoanalyzewhethertheinventorydepreciationreserveisreasonable;
(5)Reviewandevaluatetherationalityofthemajorestimatesmadebythemanagementwhendeterminingthenetrealizablevalue;
(6)Obtainthecalculationtableofinventorydepreciationreserve,checkwhethertheaccrualofinventorydepreciationreserveisimplementedaccordingtorelevantaccountingpolicies,andrecalculatetheinventorydepreciationreserve;Checkthechangesofinventorydepreciationaccruedinpreviousyears,evaluatetherationalityofestimatedsellingpriceandestimatedrelatedtaxesandfeesaskeyparametersofnetrealizablevalue,reviewthesufficiencyofbasisofestimatedsellingprice,andanalyzetherationalityofinventorydepreciationreserve.IV.OtherinformationThemanagementoftheCompanyisresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2021,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard
V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsTheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.
VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfrom
fraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagementoftheCompany.
(4)ConcludeontheappropriatenessofusingthegoingconcernassumptionbythemanagementoftheCompany,andconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatementsandbearallliabilityfortheopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GrantThorntonInternationalLtd.(SpecialGeneralPartnership)
ChineseC.P.A.ChenZhifang（ProjectPartner)BeijingChinaChineseC.P.A.LiuDuoqi
II.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY
(1)ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.
InRMB
| Items | December31,2021 | December31,2020 |
| Currentasset： | ||
| Monetaryfund | 302,472,828.60 | 279,087,236.95 |
| Settlementprovision | ||
| Outgoingcallloan | ||
| Transactionalfinancialassets | 586,540,735.16 | 684,617,260.06 |
| Derivativefinancialassets | ||
| Notereceivable | 149,942,880.28 | 16,813,657.28 |
| Accountreceivable | 479,998,708.57 | 547,310,217.90 |
| Financingofreceivables | 21,474,101.07 | 102,051,314.08 |
| Prepayments | 15,406,619.53 | 16,902,516.39 |
| Insurancereceivable | ||
| Reinsurancereceivable | ||
| ProvisionsofReinsurancecontractsreceivable | ||
| Otheraccountreceivable | 140,185,750.40 | 5,265,002.71 |
| Including：Interestreceivable | ||
| Dividendreceivable | ||
| Repurchasingoffinancialassets | ||
| Inventories | 667,461,447.03 | 480,847,581.44 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | 29,503,352.42 | 77,482,083.47 |
| Totalofcurrentassets | 2,392,986,423.06 | 2,210,376,870.28 |
| Non-currentassets： | ||
| Loansandpaymentonother’sbehalfdisbursed | ||
| Creditor'srightinvestment | ||
| Othercreditor'srightinvestment |
| Long-termreceivable | ||
| Longtermshareequityinvestment | 133,022,325.77 | 147,929,137.23 |
| Otherequityinstrumentsinvestment | 186,033,829.72 | 190,607,427.54 |
| Othernon-currentfinancialassets | 30,650,943.40 | 30,650,943.40 |
| Realestateinvestment | 106,217,779.76 | 110,572,471.92 |
| Fixedassets | 2,424,741,252.86 | 790,183,905.38 |
| Constructioninprogress | 71,482,031.08 | 1,301,750,141.12 |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | 9,221,189.37 | |
| Intangibleassets | 48,635,160.00 | 36,048,978.91 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 5,387,295.94 | 2,876,561.53 |
| Deferredincometaxasset | 3,708,596.78 | 5,243,425.26 |
| Othernon-currentasset | 84,560,280.09 | 143,307,689.66 |
| Totalofnon-currentassets | 3,103,660,684.77 | 2,759,170,681.95 |
| Totalofassets | 5,496,647,107.83 | 4,969,547,552.23 |
| Currentliabilities | ||
| Short-termloans | 37,575,113.83 | |
| LoanfromCentralBank | ||
| Borrowingfunds | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 16,682,324.12 | |
| Accountpayable | 283,643,842.23 | 329,468,601.90 |
| Advancereceipts | 1,805,311.57 | 3,542,394.33 |
| Contractliabilities | 68,955.21 | 279,631.27 |
| Sellingofrepurchasedfinancialassets | ||
| Deposittakingandinterbankdeposit | ||
| Entrustedtradingofsecurities | ||
| Entrustedsellingofsecurities | ||
| Employees’wagepayable | 59,719,860.24 | 55,642,549.53 |
| Taxpayable | 9,200,627.09 | 12,198,522.02 |
| Otheraccountpayable | 201,317,421.35 | 156,118,440.42 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsurancefeepayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | 5,175,393.52 | |
| Othercurrentliability | 27,523,903.58 | |
| Totalofcurrentliability | 642,712,752.74 | 557,250,139.47 |
| Non-currentliabilities： | ||
| Reservefundforinsurancecontracts | ||
| Long-termloan | 683,016,243.25 | 343,100,174.35 |
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | 4,243,855.71 | |
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | 30,741,055.00 | |
| Deferredincome | 110,461,293.15 | 110,740,322.21 |
| Deferredincometaxliability | 61,642,660.91 | 59,141,666.58 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 890,105,108.02 | 512,982,163.14 |
| Totalofliability | 1,532,817,860.76 | 1,070,232,302.61 |
| Owners’equity | ||
| Sharecapital | 506,521,849.00 | 507,772,279.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,961,599,824.63 | 1,967,514,358.53 |
| Less：Sharesinstock | 7,525,438.20 | |
| Othercomprehensiveincome | 119,682,119.05 | 116,605,932.42 |
| Specialreserve | ||
| Surplusreserves | 98,245,845.47 | 94,954,652.14 |
| Commonriskprovision | ||
| Retainedprofit | 130,746,251.74 | 86,912,390.50 |
| Totalofowner’sequitybelongtotheparentcompany | 2,816,795,889.89 | 2,766,234,174.39 |
| Minorityshareholders’equity | 1,147,033,357.18 | 1,133,081,075.23 |
| Totalofowners’equity | 3,963,829,247.07 | 3,899,315,249.62 |
| Totalofliabilitiesandowners’equity | 5,496,647,107.83 | 4,969,547,552.23 |
LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing
(2)ParentCompanyBalanceSheet
InRMB
| Items | December31,2021 | December31,2020 |
| Currentasset： | ||
| Monetaryfund | 130,270,313.58 | 113,560,327.21 |
| Transactionalfinancialassets | 586,540,735.16 | 514,277,000.82 |
| Derivativefinancialassets | ||
| Notereceivable | ||
| Accountreceivable | 7,935,911.24 | 1,461,400.20 |
| Financingofreceivables | ||
| Prepayments | 18,706.17 | |
| Otheraccountreceivable | 14,383,631.68 | 7,450,934.40 |
| Including：Interestreceivable | ||
| Dividendreceivable | ||
| Inventories | 39,131.60 | 8,808.00 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | ||
| Totalofcurrentassets | 739,169,723.26 | 636,777,176.80 |
| Non-currentassets： | ||
| Creditor'srightinvestment |
| Othercreditor'srightinvestment | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 2,089,070,531.86 | 2,103,977,343.32 |
| Otherequityinstrumentsinvestment | 169,974,388.84 | 177,142,433.45 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 98,174,132.57 | 101,644,481.93 |
| Fixedassets | 20,255,108.56 | 21,876,099.34 |
| Constructioninprogress | ||
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 454,036.00 | 492,923.62 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | ||
| Deferredincometaxasset | 3,672,545.57 | 5,097,360.00 |
| Othernon-currentasset | 55,790,497.23 | 96,871,196.43 |
| Totalofnon-currentassets | 2,437,391,240.63 | 2,507,101,838.09 |
| Totalofassets | 3,176,560,963.89 | 3,143,879,014.89 |
| Currentliabilities | ||
| Short-termloans | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountpayable | 411,743.57 | 411,743.57 |
| Advancereceipts | 639,024.58 | 2,875,936.58 |
| Contractliabilities | ||
| Employees’wagepayable | 16,712,946.96 | 14,824,723.81 |
| Taxpayable | 1,943,470.48 | 11,497,591.21 |
| Otheraccountpayable | 116,648,650.39 | 95,023,378.12 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year |
| Othercurrentliability | ||
| Totalofcurrentliability | 136,355,835.98 | 124,633,373.29 |
| Non-currentliabilities： | ||
| Long-termloan | ||
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 400,000.00 | 500,000.00 |
| Deferredincometaxliability | 58,002,800.69 | 56,150,418.06 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 58,402,800.69 | 56,650,418.06 |
| Totalofliability | 194,758,636.67 | 181,283,791.35 |
| Owners’equity | ||
| Sharecapital | 506,521,849.00 | 507,772,279.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,577,392,975.96 | 1,583,307,509.86 |
| Less：Sharesinstock | 7,525,438.20 | |
| Othercomprehensiveincome | 108,762,538.39 | 107,632,186.85 |
| Specialreserve | ||
| Surplusreserves | 98,245,845.47 | 94,954,652.14 |
| Retainedprofit | 690,879,118.40 | 676,454,033.89 |
| Totalofowners’equity | 2,981,802,327.22 | 2,962,595,223.54 |
| Totalofliabilitiesandowners’equity | 3,176,560,963.89 | 3,143,879,014.89 |
(3)ConsolidatedIncomestatement
InRMB
| Items | Year2021 | Year2020 |
| I.Incomefromthekeybusiness | 2,293,747,892.06 | 2,108,964,687.80 |
| Incl：Businessincome | 2,293,747,892.06 | 2,108,964,687.80 |
| Interestincome | ||
| Insurancefeeearned | ||
| Feeandcommissionreceived | ||
| II.Totalbusinesscost | 2,182,483,548.35 | 2,030,833,538.40 |
| Incl：Businesscost | 1,908,519,413.28 | 1,814,298,395.02 |
| Interestexpense | ||
| Feeandcommissionpaid | ||
| Insurancedischargepayment | ||
| Netclaimamountpaid | ||
| Netamountofwithdrawalofinsurancecontractreserve | ||
| Insurancepolicydividendpaid | ||
| Reinsuranceexpenses | ||
| Businesstaxandsurcharge | 10,523,548.09 | 7,347,125.65 |
| Salesexpense | 37,973,336.39 | 28,644,230.87 |
| Administrativeexpense | 122,088,830.15 | 105,094,934.36 |
| R&Dcosts | 103,508,764.53 | 67,160,964.22 |
| Financialexpenses | -130,344.09 | 8,287,888.28 |
| Including：Interestexpense | 14,306,275.13 | 234,815.67 |
| Interestincome | 1,655,853.59 | 3,702,735.59 |
| Add:Otherincome | 19,643,379.33 | 29,506,252.69 |
| Investmentgain（“-”forloss） | 22,663,013.06 | 22,599,670.74 |
| Incl:investmentgainsfromaffiliates | 33,984.66 | -3,446,613.86 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Gainsfromcurrencyexchange | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | 2,150,943.40 | 2,687,518.74 |
| Creditimpairmentloss | -4,981,560.53 | -10,394,533.65 |
| Impairmentlossofassets | -83,508,720.33 | -72,412,477.63 |
| Assetsdisposalincome | -597,458.77 | 276,544.73 |
| III.Operationalprofit（“-”forloss） | 66,633,939.87 | 50,394,125.02 |
| Add：Non-operationalincome | 21,285,786.64 | 1,445,662.38 |
| Less:Non-operatingexpense | 1,686,263.35 | 138,421.27 |
| IV.Totalprofit(“-”forloss) | 86,233,463.16 | 51,701,366.13 |
| Less：Incometaxexpenses | 11,118,796.96 | 8,203,720.98 |
| V.Netprofit | 75,114,666.20 | 43,497,645.15 |
| (I)Classificationbybusinesscontinuity | ||
| 1.Netcontinuingoperatingprofit | 75,114,666.20 | 43,497,645.15 |
| 2.Terminationofoperatingnetprofit | ||
| (II)Classificationbyownership | ||
| 1.Netprofitattributabletotheownersofparentcompany | 61,162,384.25 | 37,267,995.74 |
| 2.Minorityshareholders’equity | 13,952,281.95 | 6,229,649.41 |
| VI.Netafter-taxofothercomprehensiveincome | 3,076,186.63 | -3,131,850.89 |
| Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany. | 3,076,186.63 | -3,131,850.89 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | 3,275,250.36 | -2,815,824.67 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | 3,275,250.36 | -2,815,824.67 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | -199,063.73 | -316,026.22 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | -199,063.73 | -316,026.22 |
| 7.Other | ||
| NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity | ||
| VII.Totalcomprehensiveincome | 78,190,852.83 | 40,365,794.26 |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | 64,238,570.88 | 34,136,144.85 |
| Totalcomprehensiveincomeattributableminorityshareholders | 13,952,281.95 | 6,229,649.41 |
| VIII.Earningspershare |
| （I）Basicearningspershare | 0.12 | 0.07 |
| (II)Dilutedearningspershare | 0.12 | 0.07 |
Thecurrentbusinesscombinationundercommoncontrol,thenetprofitsofthecombinedpartybeforeachievednetprofitofRMB0.00,lastperiodthecombinedpartyrealizedRMB0.00.LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing
(4)IncomestatementoftheParentCompany
InRMB
| Items | Year2021 | Year2020 |
| I.Incomefromthekeybusiness | 78,159,686.19 | 61,296,888.21 |
| Incl：Businesscost | 11,547,944.88 | 10,666,274.44 |
| Businesstaxandsurcharge | 2,968,080.87 | 2,435,257.11 |
| Salesexpense | 49,682.40 | |
| Administrativeexpense | 45,821,418.49 | 38,680,586.21 |
| R&Dexpense | ||
| Financialexpenses | 283,692.12 | -1,020,628.37 |
| Including：Interestexpenses | 645,507.87 | 13,780.96 |
| Interestincome | 359,182.13 | 1,012,329.64 |
| Add：Otherincome | 602,709.52 | 117,006.72 |
| Investmentgain（“-”forloss） | 20,409,098.48 | 35,656,479.65 |
| Including:investmentgainsfromaffiliates | 33,984.66 | -3,446,613.86 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | 392,767.12 | |
| Creditimpairmentloss | -710,513.74 | -799,858.92 |
| Impairmentlossofassets | -32,769.22 | -95,343.40 |
| Assetsdisposalincome | -386,933.41 | 286,963.56 |
| II.Operationalprofit（“-”forloss） | 37,370,459.06 | 46,093,413.55 |
| Add：Non-operationalincome | 283,354.84 | 562,910.99 |
| Less：Non-operationalexpenses | 27,244.40 | |
| III.Totalprofit(“-”forloss) | 37,653,813.90 | 46,629,080.14 |
| Less：Incometaxexpenses | 5,900,206.38 | 7,746,152.13 |
| IV.Netprofit | 31,753,607.52 | 38,882,928.01 |
| 1.Netcontinuingoperatingprofit | ||
| 2.Terminationofoperatingnetprofit | 31,753,607.52 | 38,882,928.01 |
| V.Netafter-taxofothercomprehensiveincome | 1,130,351.54 | -3,131,850.89 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | 1,329,415.27 | -2,815,824.67 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | 1,329,415.27 | -2,815,824.67 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | -199,063.73 | -316,026.22 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | -199,063.73 | -316,026.22 |
| 7.Other | ||
| VI.Totalcomprehensiveincome | 32,883,959.06 | 35,751,077.12 |
| VII.Earningspershare | ||
| （I）Basicearningspershare | 0 | 0 |
| (II)Dilutedearningspershare | 0 | 0 |
(5)ConsolidatedCashflowstatement
InRMB
| Items | Year2021 | Year2020 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 2,335,256,168.54 | 1,827,292,276.43 |
| Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany | ||
| Netincreaseofloansfromcentralbank | ||
| Netincreaseofinter-bankloansfromotherfinancialbodies |
| Cashreceivedagainstoriginalinsurancecontract | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseofclientdepositandinvestment | ||
| Cashreceivedfrominterest,commissionchargeandcommission | ||
| Netincreaseofinter-bankfundreceived | ||
| Netincreaseofrepurchasingbusiness | ||
| Netcashreceivedbyagentinsecuritiestrading | ||
| Taxreturned | 9,423,408.29 | 116,428,895.93 |
| Othercashreceivedfrombusinessoperation | 88,625,329.53 | 123,408,000.43 |
| Sub-totalofcashinflow | 2,433,304,906.36 | 2,067,129,172.79 |
| Cashpaidforpurchasingofmerchandiseandservices | 1,860,349,920.78 | 1,742,576,211.51 |
| Netincreaseofclienttradeandadvance | ||
| Netincreaseofsavingsincentralbankandbrothercompany | ||
| Cashpaidfororiginalcontractclaim | ||
| Netincreaseinfinancialassetsheldfortradingpurposes | ||
| NetincreaseforOutgoingcallloan | ||
| Cashpaidforinterest,processingfeeandcommission | ||
| Cashpaidtostaffsorpaidforstaffs | 250,216,599.00 | 181,692,353.93 |
| Taxespaid | 101,786,653.96 | 43,712,017.07 |
| Othercashpaidforbusinessactivities | 225,388,712.97 | 97,217,657.52 |
| Sub-totalofcashoutflowfrombusinessactivities | 2,437,741,886.71 | 2,065,198,240.03 |
| Netcashgeneratedfrom/usedinoperatingactivities | -4,436,980.35 | 1,930,932.76 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 10,817,803.07 | 6,437,640.00 |
| Cashreceivedasinvestmentgains | 14,881,941.03 | 2,908,856.94 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 83,520.00 | 2,800,914.39 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 1,128,309,484.61 | 3,240,861,003.37 |
| Sub-totalofcashinflowduetoinvestmentactivities | 1,154,092,748.71 | 3,253,008,414.70 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 447,622,193.08 | 564,014,103.94 |
| Cashpaidasinvestment | ||
| Netincreaseofloanagainstpledge | ||
| Netcashreceivedfromsubsidiariesandotheroperationalunits |
| Othercashpaidforinvestmentactivities | 965,000,000.00 | 3,008,065,275.20 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 1,412,622,193.08 | 3,572,079,379.14 |
| Netcashflowgeneratedbyinvestment | -258,529,444.37 | -319,070,964.44 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Including:Cashreceivedasinvestmentfromminorshareholders | ||
| Cashreceivedasloans | 339,219,000.00 | 342,660,000.00 |
| Otherfinancing–relatedcashreceived | ||
| Sub-totalofcashinflowfromfinancingactivities | 339,219,000.00 | 342,660,000.00 |
| Cashtorepaydebts | ||
| Cashpaidasdividend,profit,orinterests | 38,306,691.13 | 3,511,622.58 |
| Including:Dividendandprofitpaidbysubsidiariestominorshareholders | ||
| Othercashpaidforfinancingactivities | 12,638,273.00 | 9,344,136.30 |
| Sub-totalofcashoutflowduetofinancingactivities | 50,944,964.13 | 12,855,758.88 |
| Netcashflowgeneratedbyfinancing | 288,274,035.87 | 329,804,241.12 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | -1,236,414.38 | -2,973,560.67 |
| V.Netincreaseofcashandcashequivalents | 24,071,196.77 | 9,690,648.77 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 278,337,236.95 | 268,646,588.18 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 302,408,433.72 | 278,337,236.95 |
(6)CashFlowStatementoftheParentCompany
InRMB
| Items | Year2021 | Year2020 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 66,467,384.64 | 64,167,036.73 |
| Taxreturned | ||
| Othercashreceivedfrombusinessoperation | 42,417,781.16 | 6,524,378.62 |
| Sub-totalofcashinflow | 108,885,165.80 | 70,691,415.35 |
| Cashpaidforpurchasingofmerchandiseandservices | 13,344,258.31 | 4,462,365.49 |
| Cashpaidtostaffsorpaidforstaffs | 34,360,990.56 | 27,619,751.65 |
| Taxespaid | 23,084,768.18 | 34,788,061.46 |
| Othercashpaidforbusinessactivities | 10,293,028.68 | 8,944,859.88 |
| Sub-totalofcashoutflowfrombusinessactivities | 81,083,045.73 | 75,815,038.48 |
| Netcashgeneratedfrom/usedinoperatingactivities | 27,802,120.07 | -5,123,623.13 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 10,817,803.07 | 6,437,640.00 |
| Cashreceivedasinvestmentgains | 11,479,752.94 | 1,957,306.47 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 2,759,267.00 | |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 466,820,636.28 | 1,623,459,188.57 |
| Sub-totalofcashinflowduetoinvestmentactivities | 489,118,192.29 | 1,634,613,402.04 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 2,247,719.06 | 2,528,077.97 |
| Cashpaidasinvestment | 3,555,968.96 | |
| Netcashreceivedfromsubsidiariesandotheroperationalunits | ||
| Othercashpaidforinvestmentactivities | 475,000,000.00 | 1,530,015,275.20 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 477,247,719.06 | 1,536,099,322.13 |
| Netcashflowgeneratedbyinvestment | 11,870,473.23 | 98,514,079.91 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Cashreceivedasloans | ||
| Otherfinancing–relatedashreceived | 6,545,900.00 | |
| Sub-totalofcashinflowfromfinancingactivities | 6,545,900.00 | |
| Cashtorepaydebts | ||
| Cashpaidasdividend,profit,orinterests | 15,176,281.23 | 11,231.64 |
| Othercashpaidforfinancingactivities | 7,820,298.30 | 14,344,136.30 |
| Sub-totalofcashoutflowduetofinancingactivities | 22,996,579.53 | 14,355,367.94 |
| Netcashflowgeneratedbyfinancing | -22,996,579.53 | -7,809,467.94 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | ||
| V.Netincreaseofcashandcashequivalents | 16,676,013.77 | 85,580,988.84 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 113,560,327.21 | 27,979,338.37 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 130,236,340.98 | 113,560,327.21 |
(7)ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod
InRMB
| Items | Year2021 | ||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshar | Totalofown | |||||||||||
| Share | OtherEquityinstrument | Capital | Less: | Other | Specializ | Surplus | Common | Retained | Other | Subtotal | |||
| Capital | Preferredstock | Sustainabledebt | Other | reserves | Sharesinstock | ComprehensiveIncome | edreserve | reserves | riskprovision | profit | eholders’equity | ers’equity | |||
| I.Balanceattheendoflastyear | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 | ||||||
| Add:Changeofaccountingpolicy | |||||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 | ||||||
| III.Changedinthecurrentyear | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 3,076,186.63 | 3,291,193.33 | 43,833,861.24 | 50,561,715.50 | 13,952,281.95 | 64,513,997.45 | ||||||
| （1）Totalcomprehensiveincome | 4,234,512.42 | 61,162,384.25 | 65,396,896.67 | 13,952,281.95 | 79,349,178.62 | ||||||||||
| （II）Investmentordecreasingof | -1,250,43 | -5,914,533.9 | -7,525,438.2 | 360,474.30 | 360,474.30 |
| capitalbyowners | 0.00 | 0 | 0 | ||||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | |||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | |||||||||||||
| 4．Other | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | 360,474.30 | ||||||||
| （III）Profitallotment | 3,175,360.75 | -18,371,016.22 | -15,195,655.47 | -15,195,655.47 | |||||||||
| 1.Providingofsurplusreserves | 3,175,360.75 | -3,175,360.75 | |||||||||||
| 2.Providingofcommonriskprovisions | |||||||||||||
| 3．Allotmenttotheowners(orshareholders) | -15,195,655.47 | -15,195,655.47 | -15,195,655.47 | ||||||||||
| 4．Other | |||||||||||||
| (IV)Internaltransferringofowners’equity | -1,158,325.79 | 115,832.58 | 1,042,493.21 |
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | |||||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | |||||||||||||
| 3．Makinguplossesbysurplusreserves. | |||||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | |||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -1,158,325.79 | 115,832.58 | 1,042,493.21 | ||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendofthisterm | 506,521,849.00 | 1,961,599,824.63 | 119,682,119.05 | 98,245,845.47 | 130,746,251.74 | 2,816,795,889.89 | 1,147,033,357.18 | 3,963,829,247.07 |
Amountinlastyear
InRMB
| Items | Year2020 | ||||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Sustainabledebt | Other | |||||||||||||
| I.Balanceattheendoflastyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| Add:Changeofaccountingpolicy | |||||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| III.Changedinthecurrentyear | -1,566,150.0 | -7,407,889.50 | -8,613,565.20 | -3,131,850.89 | 4,357,728.75 | 37,604,626.47 | 38,470,030.03 | 6,229,649.41 | 44,699,679.44 | ||||||
| 0 | |||||||||||||
| （1）Totalcomprehensiveincome | 1,562,508.59 | 37,267,995.74 | 38,830,504.33 | 6,229,649.41 | 45,060,153.74 | ||||||||
| （II）Investmentordecreasingofcapitalbyowners | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | -360,474.30 | ||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | |||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | |||||||||||||
| 4．Other | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | -360,474.30 | ||||||||
| （III）Profitallotment | 3,888,292.80 | -3,888,292.80 | |||||||||||
| 1.Providingofsurplusreserves | 3,888,292.80 | -3,888,292.80 | |||||||||||
| 2.Providingofcommonriskprovisions |
| 3．Allotmenttotheowners(orshareholders) | ||||||
| 4．Other | ||||||
| (IV)Internaltransferringofowners’equity | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||
| 3．Makinguplossesbysurplusreserves. | ||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||
| 6．Other | ||||||
| (V).Special |
| reserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendofthisterm | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 |
(8)Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiod
InRMB
| Items | Year2021 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 | |||||
| Add:Changeofaccountingpolicy | ||||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 | |||||
| III.Changed | -1,25 | -5,914, | -7,525, | 1,130, | 3,291, | 14,4 | 19,207,1 | |||||
| inthecurrentyear | 0,430.00 | 533.90 | 438.20 | 351.54 | 193.33 | 25,084.51 | 03.68 | |||
| （I）Totalcomprehensiveincome | 2,288,677.33 | 31,753,607.52 | 34,042,284.85 | |||||||
| (II)Investmentordecreasingofcapitalbyowners | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | ||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||
| 4．Other | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | ||||||
| （III）Profitallotment | 3,175,360.75 | -18,371,016.22 | -15,195,655.47 | |||||||
| 1.Providingofsurplusreserves | 3,175,360.75 | -3,175,360.75 | ||||||||
| 2．Allotmenttotheowners(orshareholders) | -15,195,655.47 | -15,195,655.47 | ||||||||
| 3．Other | ||||||||||
| (IV)Internaltransferringofowners’equity | -1,158,325.79 | 115,832.58 | 1,042,493.21 |
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -1,158,325.79 | 115,832.58 | 1,042,493.21 | |||||||
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | ||||||||||
| IV.Balanceattheendofthisterm | 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 |
Amountinlastyear
InRMB
| Items | Year2020 |
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| Add:Changeofaccountingpolicy | ||||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| III.Changedinthecurrentyear | -1,566,150.00 | -6,561,989.50 | -8,613,565.20 | -3,131,850.89 | 4,357,728.75 | 39,219,558.74 | 40,930,862.30 | |||||
| （I）Totalcomprehensiveincome | 1,562,508.59 | 38,882,928.01 | 40,445,436.60 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | ||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityi | ||||||||||||
| nstrumentsinvestedcapital | ||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||
| 4．Other | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | ||||||
| （III）Profitallotment | 3,888,292.80 | -3,888,292.80 | ||||||||
| 1.Providingofsurplusreserves | 3,888,292.80 | -3,888,292.80 | ||||||||
| 2．Allotmenttotheowners(orshareholders) | ||||||||||
| 3．Other | ||||||||||
| (IV)Internaltransferringofowners’equity | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||
| 3．Makinguplossesbysurplus |
| reserves. | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||||||
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | 845,900.00 | 845,900.00 | ||||||||
| IV.Balanceattheendofthisterm | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 |
III.BasicInformationoftheCompany
ShenzhenTextile(Group)Co.,Ltd.(hereinafterreferredtoas"Company"or"theCompany")isajoint-stockcompanyregisteredinGuangdongProvincewitharegisteredcapitalofRMB506.521849millionandaunifiedsocialcreditcodeof91440300192173749Y.TheCompanyhaspubliclyissuedRMBcommonshares(Ashares)anddomesticlistedforeignshares(Bshares)tothepublicathomeandabroad,andlistedandtradedthem.TheCompanyisheadquarteredaddressare6/F,ShenfangBuilding,No.3HuaqiangRoad.North,FutianDistrict,Shenzhen.ThecompanywaspreviouslytheShenzhenTextileIndustryCompany,onApril13,1994,approvedbytheLetter(1994)No.15issuedbyShenzhenMunicipalPeople'sGovernment,theCompanywasrestructuredandnamedasShenzhenTextile(Group)Co.,Ltd.，AsofDecember31,2021,theCompanyhasissuedatotalof506,521,849.00shares.
TheCompanyhasestablishedthecorporategovernancestructureofGeneralMeetingofShareholders,BoardofDirectorsandBoardofSupervisors,andcurrentlyhastheBoardOffice,Office,StrategicDevelopment
Department,OperationandManagementDepartment,FinanceDepartment,AuditDepartment,HumanResourcesDepartmentandotherdepartments.theCompanyismainlyengagedinhigh-techindustryfocusingonR&D,productionandmarketingofpolarizersforliquidcrystaldisplay,managementofpropertiesinbustlingbusinessdistrictsofShenzhenandreservedhigh-classtextileandgarmentbusiness.Thefinancialstatementshavebeenauthorizedforissuanceofthe11stmeetingofthe8thBoardofDirectorsoftheGrouponMarch15,2022.AsofDecember31,2021,Atotalof8subsidiariesoftheCompanyareincludedinthescopeofconsolidation.Fordetails,pleaserefertoSectionXFinancialReport,IX"RightsandInterestsinOtherSubjects".IV.Basisforthepreparationoffinancialstatements
（1）BasisforthepreparationThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinanceanditsapplicationguidelines,interpretationsandotherrelevantprovisions(collectivelyreferredtoasthe"AccountingStandardsforBusinessEnterprises").Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRulesNo.15fortheInformationDisclosureandCompilationofCompaniesOfferingSecuritiesPublicIssuance-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.
TheaccountingoftheCompanyisbasedonaccrualbasis.Exceptforsomefinancialinstruments,thefinancialstatementsarebasedonhistoricalcosts.Incaseofassetimpairment,impairmentprovisionshallbemadeinaccordancewithrelevantregulations.
(2)Continuation
Thisfinancialstatementispresentedonthebasisofgoingconcern.V.ImportantaccountingpoliciesandestimationsSpecificaccountingpoliciesandaccountingestimatestips:
Accordingtoitsownproductionandoperationcharacteristics,theCompanydeterminesthepoliciesofdepreciationoffixedassets,amortizationofintangibleassetsandrevenuerecognition.SeeNoteV.16,,NoteV,19andNoteV.26forspecificaccountingpolicies.
1.StatementoncomplyingwithcorporateaccountingstandardsThisfinancialstatementconformstotherequirementsofAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflectsthecombinationandfinancialstatusoftheCompanyonDecember31,2021,aswellasthecombinationandoperatingresultsandcashflowoftheCompany.
2.FiscalYearTheCompanyadoptstheGregoriancalendaryearcommencingonJanuary1andendingonDecember31asthefiscalyear.
3.Operatingcycle
TheoperatingcycleoftheCompanyis12months.
4.AccountingstandardmoneyTheCompanyanditsdomesticsubsidiariesuseRMBastheirbookkeepingbasecurrency.Theoverseas
subsidiariesoftheCompanydetermineRMBastheirbookkeepingbasecurrencyaccordingtothecurrencyinthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinpreparingthefinancialstatementsisRMB.
5.Accountingprocessmethodofenterpriseconsolidationundersameanddifferentcontrolling.
（1）Enterprisemergerundersamecontrol：
Forbusinesscombinationunderthesamecontrol,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyduringthecombinationshallbemeasuredaccordingtothebookvalueofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies.Thedifferencebetweenthebookvalueofthecombinationconsiderationandthebookvalueofthenetassetsobtainedinthecombinationadjuststhecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.Businesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactions
Inindividualfinancialstatements,theshareofthebookvalueofthenetassetsofthecombinedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyshallbetakenastheinitialinvestmentcostoftheinvestmentonthecombinationdaycalculatedbytheshareholdingratioonthecombinationday;Adjustthecapitalreserveforthedifferencebetweentheinitialinvestmentcostandthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombination.Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.
Intheconsolidatedfinancialstatements,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyinthecombinationshallbemeasuredaccordingtothebookvalueintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies;Thedifferencebetweenthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombinationandthebookvalueofthenetassetsobtainedduringthecombinationwillbeadjustedforcapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.Forthelong-termequityinvestmentheldbythemergingpartybeforeobtainingthecontrolrightofthecombinedparty,therelevantprofitsandlosses,othercomprehensiveincomeandotherchangesinowner'sequityhavebeenrecognizedfromthedateofobtainingtheoriginalequityandthedatewhenthemergingpartyandthecombinedpartyareunderthesamefinalcontroltothecombinationdate,andtheinitialretainedearningsorcurrentprofitsandlossesduringthecomparativereportperiodshallbeoffsetrespectively.
(2)Businesscombinationinvolvingentitiesnotundercommoncontrol
Forbusinesscombinationnotunderthesamecontrol,thecombinationcostreferstotheassetspaid,liabilitiesincurredorassumed,andfairvalueoftheissuedequitysecuritiesinordertogaincontrolovertheacquireeontheacquisitiondate.Ontheacquisitiondate,theacquiredassets,liabilitiesandcontingentliabilitiesoftheacquireearerecognizedatfairvalue.
Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredinthecombinationisrecognizedasgoodwill,andtheaccumulatedimpairmentprovisionisdeductedbycostforsubsequentmeasurement;Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredbytheacquireeinthecombinationshallberecordedintothecurrentprofitsandlossesafterreview.
BusinesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactionsInindividualfinancialstatements,thesumofthebookvalueoftheequityinvestmentheldbytheacquiree
beforetheacquisitiondateandthenewinvestmentcostontheacquisitiondateistakenastheinitialinvestmentcostoftheinvestment.Othercomprehensiveincomerecognizedbytheequityinvestmentheldbeforetheacquisitiondateduetoaccountingbytheequitymethodisnottreatedontheacquisitiondate,andaccountingtreatmentiscarriedoutonthesamebasisasthatoftheinvestee'sdirectdisposalofrelatedassetsorliabilities;Theowner'sequityrecognizedduetothechangeofowner'sequityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbetransferredtothecurrentprofitandlossduringthedisposalperiodwhentheinvestmentisdisposed.Iftheequityinvestmentheldbeforetheacquisitiondateismeasuredbyfairvalue,theaccumulatedchangesinfairvalueoriginallyincludedinothercomprehensiveincomewillbetransferredtothecurrentprofitsandlosseswhenaccountingbycostmethod.
Intheconsolidatedfinancialstatements,theconsolidatedcostisthesumoftheconsiderationpaidontheacquisitiondateandthefairvalueoftheequityoftheacquireeheldbeforetheacquisitiondateontheacquisitiondate.Theequityoftheacquireeheldbeforetheacquisitiondateshallbere-measuredaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentincome;Equityoftheacquireeheldbeforetheacquisitiondateinvolvesothercomprehensiveincome,andotherchangesinowner'sequityareconvertedintocurrentincomeontheacquisitiondate,exceptforothercomprehensiveincomearisingfromtheremeasurementofnetliabilitiesorchangesinnetassetsofthesetincomeplanbytheinvestee.
(3)TreatmentoftransactioncostsinbusinesscombinationIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultation,andotherrelatedmanagementexpensesincurredforbusinesscombinationareincludedinthecurrentprofitsandlosseswhentheyoccur.Transactioncostsofequitysecuritiesordebtsecuritiesissuedascombinationconsiderationareincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.6Compilationmethodofconsolidatedfinancialstatements
(1)Thescopeofconsolidation
Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).
(2)Compilationmethodofconsolidatedfinancialstatements
TheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andarepreparedbytheCompanyaccordingtootherrelevantinformation.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingperiodrequirementsoftheCompanyanditssubsidiariesareconsistent,andmajortransactionsandcurrentbalancesbetweencompaniesareoffset.Duringthereportingperiod,thesubsidiariesandbusinessesincreasedduetothebusinesscombinationunderthesamecontrolshallbedeemedtobeincludedintheconsolidationscopeoftheCompanyfromthedatewhenthey
arecontrolledbytheultimatecontroller,andtheiroperatingresultsandcashflowsfromthedatewhentheyarecontrolledbytheultimatecontrollershallbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowstatementrespectively.Duringthereportingperiod,theincome,expensesandprofitsofsubsidiariesandbusinessesincreasedfromtheacquisitiondatetotheendofthereportingperiodduetobusinesscombinationnotunderthesamecontrolduringthereportingperiodareincludedintheconsolidatedincomestatement,andtheircashflowsareincludedintheconsolidatedcashflowstatement.Thepartofshareholders'equityofsubsidiariesthatisnotownedbytheCompanyislistedseparatelyasminorityshareholders'equityintheconsolidatedbalancesheet;Theshareofminorityshareholders'equityinthecurrentnetprofitandlossofsubsidiariesislistedas"minorityshareholders'profitandloss"underthenetprofititemintheconsolidatedincomestatement.Ifthelossofsubsidiarysharedbyminorityshareholdersexceedstheshareenjoyedbyminorityshareholdersintheinitialowner'sequityofsuchsubsidiary,thebalancestilloffsetsminorityshareholders'equity.
(3)Acquisitionofminorityshareholders'equityofsubsidiariesThecapitalreserveintheconsolidatedbalancesheetshallbeadjustedforthedifferencebetweenthenewlyacquiredlong-termequityinvestmentcostduetotheacquisitionofminoritysharesandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdate,andthedifferencebetweenthedisposalpriceobtainedfrompartialdisposalofequityinvestmentinsubsidiarieswithoutlosingcontrolandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdatecorrespondingtothedisposaloflong-termequityinvestment.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
(4)Treatmentoflosingcontroloversubsidiaries
Ifthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityshallbere-measuredaccordingtoitsfairvalueonthedateoflossofcontrol;Thesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueofremainingequity,minusthesumoftheshareoftheoriginalsubsidiary'sbookvalueofnetassetscalculatedcontinuouslyfromtheacquisitiondateandgoodwillcalculatedaccordingtotheoriginalshareholdingratio,andthedifferenceformedisincludedintheinvestmentincomeofthecurrentperiodoflossofcontrol.
Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestmentwillbetransferredtothecurrentprofitsandlosseswhenthecontrolrightislost,exceptforothercomprehensiveincomegeneratedbytheinvestee'sremeasurementofthenetliabilitiesorchangesinnetassetsofthesetincomeplan.
7.JointventurearrangementsclassificationandCo-operationaccountingtreatment
Jointventurearrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.ThejointventurearrangementoftheCompanyisdividedintojointoperationandjointventure.
(1)Jointoperation
JointoperationreferstothejointventurearrangementinwhichtheCompanyisentitledtotheassetsrelatedtothearrangementandbearstheliabilitiesrelatedtothearrangement.
TheCompanyrecognizesthefollowingitemsrelatedtotheshareofinterestsinjointoperation,andcarriesoutaccountingtreatmentinaccordancewiththerelevantaccountingstandardsforbusinessenterprises:
A.Recognizeassetsheldseparatelyandassetsheldjointlyaccordingtotheirshares;B.Recognizetheliabilitiesundertakenseparately,andrecognizetheliabilitiesjointlyundertakenaccording
totheirshares;C.Recognizetheincomegeneratedfromthesaleofitsshareofjointoperatingoutput;D.Recognizetheincomegeneratedbythesaleofoutputfromjointoperationaccordingtotheirshares;E.Recognizetheexpensesincurredseparately,andrecognizetheexpensesincurredinjointoperationaccordingtotheirshares.
(2)JointventureAjointventurereferstoajointventurearrangementinwhichtheCompanyonlyhasrightstothenetassetsofthearrangement.TheCompanyshallcarryoutaccountingtreatmentontheinvestmentofthejointventureinaccordancewiththeprovisionsonaccountingoflong-termequityinvestmentbytheequitymethod.
8.RecognitionStandardofCash&CashEquivalentsCashreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanywithshortterm,strongliquidity,easyconversionintoknowncashandlittleriskofvaluechange.
9.Foreigncurrencytransaction
IncaseofforeigncurrencybusinessoftheCompany,theexchangeratedeterminedbyasystematicandreasonablemethodwhichissimilartothespotexchangerateonthetransactiondateshallbeusedtoconvertitintothebookkeepingbasecurrencyamount.Balancesheetdate:foreigncurrencymonetaryitemsshallbeconvertedatthespotexchangerateonthebalancesheetdate.Exchangedifferencesarisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateareincludedinthecurrentprofitsandlosses;Forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thespotexchangerateonthetransactiondateisstilladopted;Foreigncurrencynon-monetaryitemsmeasuredatfairvalueareconvertedatthespotexchangerateonthefairvaluedeterminationdate,andthedifferencebetweentheconvertedbookkeepingbasecurrencyamountandtheoriginalbookkeeping,Accordingtothenatureofnon-monetaryitems,itisincludedincurrentprofitsandlossesorothercomprehensiveincome.
10.Financialinstruments
Financialinstrumentsrefertocontractsthatformfinancialassetsofonepartyandfinancialliabilitiesorequityinstrumentsofotherparties.
(1)RecognitionandderecognitionoffinancialinstrumentsWhentheCompanybecomesapartytoafinancialinstrumentcontract,afinancialassetorfinancialliabilityisrecognized.
Financialassetsthatmeetoneofthefollowingconditionsshallbederecognized:
①Terminationofthecontractualrighttoreceivecashflowfromthefinancialasset;
②Thefinancialassethasbeentransferredandthefollowingconditionsforderecognitionoffinancialassettransferaremet.Ifallorpartofthecurrentobligationsofafinancialliabilityhavebeendischarged,thefinancialliabilityorpartofitshallbederecognized.IftheCompany(debtor)signsanagreementwiththecreditortoreplacetheexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheexistingfinancialliabilities,theexistingfinancialliabilitiesshallbe
derecognizedandthenewfinancialliabilitiesshallberecognizedatthesametime.
Whentradingthefinancialassetsinaconventionalway,accountingrecognitionandderecognitionshallbecarriedoutaccordingtothetradingday.
(2)Classificationandmeasurementoffinancialassets
Accordingtothebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsintothefollowingthreecategories:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Financialassetsmeasuredatamortizedcost
TheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatamortizedcost:
?TheCompany'sbusinessmodelofmanagingsuchfinancialassetsistocollectcontractcashflowasthegoal;?Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythe
paymentofprincipalandinterestbasedontheunpaidprincipalamount.?Afterinitialrecognition,suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestrate
method.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofany
hedgingrelationshipareincludedincurrentprofitsandlosseswhenderecognition,amortizationaccordingto
theeffectiveinterestratemethod,orimpairmentrecognition.
Financialassetsmeasuredatfairvalueandchangesincludedinothercomprehensiveincome
TheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome:
?Thecompany'sbusinessmodelofmanagingthefinancialassetsaimsatbothcollectingcontractcashflow
andsellingthefinancialassets;?Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythe
paymentofprincipalandinterestbasedontheunpaidprincipalamount.
Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Interest,impairment
lossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestratemethodareincludedin
thecurrentprofitsandlosses,whileothergainsorlossesareincludedinothercomprehensiveincome.Upon
terminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensive
incomeshallbetransferredoutofothercomprehensiveincomeandincludedincurrentprofitsandlosses.
Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses
Exceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,theCompanyirrevocablydesignatedsomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvaluewithchangesincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.
Afterinitialrecognition,thefinancialassetsaresubsequentlymeasuredatfairvalue,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedinthecurrentprofitsandlosses,unlessthefinancialassetsarepartofthehedgingrelationship.
However,fornon-tradingequityinstrumentinvestments,theCompanycanirrevocablydesignatethemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeuponinitialrecognition.Thedesignationismadeonthebasisofasingleinvestment,andtherelevantinvestmentconformstothedefinitionofequityinstrumentsfromtheperspectiveoftheissuer.
Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Dividendincomethatmeetstherequirementsisincludedinprofitorloss,andothergainsorlossesandchangesinfairvalueareincludedinothercomprehensiveincome.Uponterminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomeshallbetransferredoutofothercomprehensiveincomeandincludedinretainedincome.
ThebusinessmodelofmanagingfinancialassetreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowoffinancialassetsmanagedbytheCompanycomesfromcontractcashflow,saleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelofmanagingfinancialassetsbasedonobjectivefactsandspecificbusinessobjectivesofmanagingfinancialassetsdecidedbykeymanagementpersonnel.
TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbyrelatedfinancialassetsonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.Where,theprincipalreferstothefairvalueoffinancialassetsatinitialrecognition;Interestincludesconsiderationforthetimevalueofmoney,creditriskrelatedtotheunpaidprincipalamountinaspecificperiod,andotherbasicborrowingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontractclausesthatmaycausechangesinthetimedistributionoramountofcashflowoffinancialassetscontractstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractcashflowcharacteristics.
OnlywhentheCompanychangesitsbusinessmodelformanagingfinancialassets,allaffectedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthebusinessmodelchanges,otherwise,financialassetsshallnotbereclassifiedafterinitialrecognition.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalue,whosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses;Forothertypesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.AccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponentsareinitiallyrecognizedbytheCompanyinaccordancewiththeamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceive.
(3)Classificationandmeasurementoffinancialliabilities
Atinitialrecognition,thefinancialliabilitiesoftheCompanyareclassifiedinto:financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,relevanttransactioncostsareincludedintheirinitialrecognitionamount.Financialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses
Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedatfairvalueatinitialrecognitionwithchangesincludedincurrentprofitsandlosses.Suchfinancialliabilitiesaresubsequentlymeasuredaccordingtofairvalue,andthegainsorlossescausedbychangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesareincludedincurrentprofitsandlosses..Financialliabilitiesmeasuredinamortizedcost
Otherfinancialliabilitiesaresubsequentlymeasuredaccordingtotheamortizedcostbytheeffectiveinterestratemethod,andthegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Contractobligationtodelivercashorotherfinancialassetstootherparties.
②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentialunfavorableconditions.
③Non-derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,forwhichtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothiscontract.
④Derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,exceptforderivativecontractsthatexchangeafixedamountofitsownequityinstrumentsforafixedamountofcashorotherfinancialassets.
Equityinstrumentsrefertocontractsthatcanproveownershipofanenterprise'sresidualequityinassetsafterdeductingallliabilities.
IftheCompanycan'tunconditionallyavoiddeliveringcashorotherfinancialassetstofulfillacontractualobligation,thecontractualobligationmeetsthedefinitionoffinancialliabilities.
IfafinancialinstrumentneedstobesettledorcanbesettledbytheCompany'sownequityinstrument,itshallbeconsideredwhetheritsownequityinstrumentusedtosettletheinstrumentisasubstituteforcashorotherfinancialassets,oritistoenabletheholderofsuchinstrumenttobeentitledtotheremainingequityintheassetsafterallliabilitiesaredeductedbytheissuer.Intheformercase,theinstrumentisthefinancialliabilityoftheCompany;Inthelattercase,theinstrumentistheequityinstrumentoftheCompany.
(4)DerivativefinancialinstrumentsandembeddedderivativeinstrumentsInitially,itismeasuredatthefairvalueonthedaywhenthederivativetransactioncontractissigned,andthenmeasuredatitsfairvalue.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareregardedasanliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotmeettherequirementsofhedgeaccountingaredirectlyincludedinthecurrentprofitsandlosses.Formixedinstrumentsincludingembeddedderivative,ifthemaincontractisfinancialassets,therelevantprovisionsoffinancialassetclassificationshallapplytothemixedinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthemixedinstrumentisnotmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlossesforaccountingtreatment,theembeddedderivativeisnotcloselyrelatedtothemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivative,andiftheindependentinstrumentmeetsthedefinitionofderivative,theembeddedderivativeissplitfromthemixedinstrumentandtreatedasaseparatederivativefinancialinstrument.Iftheembeddedderivativecannotbeseparatelymeasuredatthetimeofacquisitionoronthesubsequentbalancesheetdate,themixedinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses.
(5)Fairvalueoffinancialinstruments
SeeNoteIII.11forthedeterminationmethodofthefairvalueoffinancialassetsandfinancialliabilities.
(6)Impairmentoffinancialassets
Basedontheexpectedcreditloss,theCompanywillcarryoutimpairmentaccountingtreatmentonthe
followingitemsandrecognizethelossreserve:
①Financialassetsmeasuredatamortizedcost;
②Receivablesanddebtinvestmentsmeasuredatfairvalueandincludedinothercomprehensiveincome;
③Leasereceivables;
④Financialguaranteecontracts(exceptthosewhicharemeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,inwhichthetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,orthoseformedbycontinuingtoinvolvethetransferredfinancialassets).Measurementofexpectedcreditloss
Expectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenthecashflowofallcontractsdiscountedaccordingtotheoriginalrealinterestrateandtheexpectedcashflowofallcontractsreceivableaccordingtothecontract,thatis,thepresentvalueofallcashshortages.TheCompanytakesintoaccountreasonableandreliableinformationonhistoricalevents,currentsituationandfutureeconomicsituationforecasts,andusestheriskofdefaultastheweighttocalculatetheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceivedtorecognizetheexpectedcreditloss.
TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;Ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration;Ifafinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.Theexpectedcreditlossinthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsinthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythefinancialinstrumentdefaulteventthatmayoccurwithin12monthsafterthebalancesheetdate(orwithintheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months),whichisapartoftheexpectedcreditlossinthewholeduration.
Whenmeasuringtheexpectedcreditloss,thelongestperiodthattheCompanyneedstoconsideristhelongestcontractperiodduringwhichtheenterpriseissubjecttocreditrisk(includingtheoptiontorenewthecontract).
Forfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk,theCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheactualinterestrate.Forfinancialinstrumentsinthethirdstage,theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheactualinterestrate.
Fornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.
Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditrisk
characteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:
A.NotesreceivableNotesreceivableportfolio1:bankacceptancebillNotesreceivableportfolio2:commercialacceptancebillB.AccountsreceivableAccountsreceivableportfolio1:polarizersalesreceivableAccountsreceivableportfolio2:textileandgarmentsalesreceivableAccountsreceivableportfolio3:operatingfundsreceivablefromself-ownpropertyAccountsreceivableportfolio4:otherreceivablesFornotesreceivabledividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperience,andcalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateofthewholedurationbasedonthecurrentsituationandforecaststhefutureeconomicsituation.
Foraccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.Otherreceivables
TheCompanyclassifiesotherreceivablesintoseveralcombinationsaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossesbasedontheportfolios.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio:agingportfolioForotherreceivablesclassifiedasportfolios,theCompanycalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateinthenext12monthsorthewholeduration.Debtinvestmentandotherdebtinvestment
Forcreditor'srightsinvestmentandothercreditor'srightsinvestment,theCompanycalculatestheexpectedcreditlossaccordingtothenatureoftheinvestment,thecounterpartyandvarioustypesofriskexposureandbasedontheexpectedcreditlossrateinthenext12monthsorthewholeduration.Evaluationofsignificantincreaseincreditrisk
Bycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate,theCompanydeterminestherelativechangeofdefaultriskoffinancialinstrumentsintheexpectedduration,andevaluateswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.
Whendeterminingwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition,thecompanyconsiderstoobtainreasonableandreliableinformationwithoutunnecessaryextracostsorefforts,includingforward-lookinginformation.InformationconsideredbytheCompanyincludes:
?Thedebtorfailstopaytheprincipalandinterestaccordingtotheexpirationdateofthecontract;?Seriousdeteriorationofexternalorinternalcreditrating(ifany)offinancialinstrumentsthathasoccurredorisexpected;?Seriousdeteriorationofthedebtor'soperatingresultsthathasoccurredorisexpected;?Changesinexistingorexpectedtechnology,market,economicorlegalenvironment,andsignificantadverseeffectsonthedebtor'srepaymentabilityoftheCompany.
Accordingtothenatureoffinancialinstruments,theCompanyassesseswhethercreditriskshaveincreasedsignificantlyonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Whenevaluatingonthebasisoffinancialinstrumentportfolio,theCompanycanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskrating.Financialassetswithcreditimpairment
Onthebalancesheetdate,theCompanyevaluateswhetherthefinancialassetsmeasuredatamortizedcostandthecreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomehavesufferedcreditimpairment.Whenoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetbecomesafinancialassetwithcreditimpairment.Evidenceofcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:
?Theissuerordebtorhasmajorfinancialdifficulties;?Thedebtorviolatesthecontract,suchasdefaultoroverduepaymentofinterestorprincipal;?TheCompanygivesconcessionsthatthedebtorwillnotmakeunderanyothercircumstancesduetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties;?Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;?Thefinancialdifficultiesoftheissuerordebtorcausetheactivemarketofthefinancialassetstodisappear.Presentationofexpectedcreditlossprovision
Inordertoreflectthechangeofcreditriskoffinancialinstrumentsafterinitialrecognition,theCompanyre-measurestheexpectedcreditlossoneachbalancesheetdate,andtheresultingincreaseorreversalamountoflossreserveshallbeincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Forfinancialassetsmeasuredinamortizedcost,thelossreserveshallbeoffsetagainstthebookvalueofthefinancialassetslistedinthebalancesheet;Forcreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincome,whichdoesnotoffsetthebookvalueofthefinancialasset.Cancelafterverification
IftheCompanynolongerreasonablyexpectsthecontractcashflowoffinancialassetstobefullyorpartiallyrecovered,itwilldirectlywritedownthebookbalanceofthefinancialassets.Thiswrite-downconstitutesthederecognitionofrelatedfinancialassets.ItusuallyhappenswhentheCompanydeterminesthatthedebtorhasnoassetsorincomesourcestogenerateenoughcashflowtorepaytheamounttobewrittendown.However,accordingtotheCompany'sproceduresforrecoveringthedueamount,thewritten-downfinancialassetsmaystillbeaffectedbytheimplementationactivities.
Ifthewritten-downfinancialassetsarerecoveredlater,theywillbeincludedinprofitsandlossesofthecurrentrecoveryperiodasthereversalofimpairmentlosses.
(7)TransferoffinancialassetsTransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialassets.
Ifthecompanyhastransferredalmostallrisksandrewardsintheownershipofthefinancialassettothetransferee,therecognitionofthefinancialassetshallbeterminated;Ifalmostallrisksandrewardsontheownershipofafinancialassetareretained,thefinancialassetshallnotbederecognized.
IftheCompanyhasneithertransferrednorretainedalmostallrisksandrewardsintheownershipoffinancialassets,itshallbedealtwithasfollows:ifthecontrolofthefinancialassetsisabandoned,thefinancialassetsshallbederecognizedandtheresultingassetsandliabilitiesshallberecognized;Ifthecontrolofthefinancialassetsis
notabandoned,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsetoffinancialassetsandfinancialliabilitiesWhentheCompanyhasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilities,whichcanbeenforcedatpresent,andtheCompanyplanstosettlebynetamountoratthesametimerealizesuchfinancialassetsandpayoffsuchfinancialliabilities,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetwiththeamountafteroffset.Inaddition,financialassetsandfinancialliabilitiesarelistedseparatelyinthebalancesheetandwillnotbeoffsetagainsteachother.
11.NotesreceivableFornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditriskcharacteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:
Notesreceivableportfolio1:bankacceptancebillNotesreceivableportfolio2:commercialacceptancebillFornotesreceivabledividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperience,andcalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateofthewholedurationbasedonthecurrentsituationandforecaststhefutureeconomicsituation.
12.Accountsreceivable
Fornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditriskcharacteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:
Accountsreceivableportfolio1:polarizersalesreceivableAccountsreceivableportfolio2:textileandgarmentsalesreceivableAccountsreceivableportfolio3:operatingfundsreceivablefromself-ownpropertyAccountsreceivableportfolio4:otherreceivablesForaccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.
13.Receivablefinancing
Forbillsreceivableandaccountsreceivableclassifiedasthosemeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theportionwithself-financingperiodwithinoneyear(includingone
year)islistedasreceivablesfinancing;Iftheperiodofself-acceptanceismorethanoneyear,itshallbelistedasothercreditor'srightsinvestment.Forrelevantaccountingpolicies,pleaserefertoNoteV,(10)"FinancialInstruments"andNoteV,(10)"ImpairmentofFinancialinstruments".
14.OtheraccountreceivableDeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivablesTheCompanydividestheotherreceivablesintoseveralportfolioaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossesonthebasisofdeterminingtheportfolioasfollows:
Otherreceivablesportfolio:ageportfolio:
Foraccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.
15.Inventory
1.InvestoriesclassTheCompany'sinventoryincludesrawmaterials,in-processproducts,low-valueconsumables,packagingmaterials,inventorygoods,andissuedgoods.
(2)PricingmethodofissuedinventoryTheCompany'sinventoryispricedattheactualcostwhenitisacquired.Theweightedaveragemethodisadoptedwhenrawmaterialsandinventorygoodsareissued.
(3)DeterminationbasisofnetrealizablevalueofinventoryandaccrualmethodofinventorydepreciationreserveThenetrealizablevalueofinventoryistheestimatedsellingpriceofinventoryminustheestimatedcoststobeincurreduponcompletion,estimatedsalesexpensesandrelatedtaxes.Fordeterminationofthenetrealizablevalueofinventories,thesolidevidenceshallserveasthebasis,andthepurposeofholdinginventoriesandtheinfluenceofeventsafterthebalancesheetdateshallbeconsidered.Onthebalancesheetdate,iftheinventorycostishigherthanitsnetrealizablevalue,inventorydepreciationreserveshallbemade.TheCompanyusuallyaccruestheinventorydepreciationreserveaccordingtoindividualinventoryitems.Onthebalancesheetdate,iftheinfluencingfactorsofpreviousinventoryvaluewrittendownhavedisappeared,theinventorydepreciationreservewillbereturnedwithintheoriginallyaccruedamount.
(4)InventorysystemofinventoryPerpetualinventorysystemisadoptedfortheCompany'sinventorysystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagingmaterialsLow-valueconsumablesandpackagingmaterialsoftheCompanyareamortizedbyone-timewrite-offmethod.
16.ContractassetsTheCompanyliststhecustomer'sunpaidcontractconsiderationforwhichtheCompanyhasfulfilleditsperformanceobligationsaccordingtothecontract,andwhichisnottherighttocollectmoneyfromcustomersunconditionally(thatis,onlydependingonthepassageoftime)asacontractassetinthebalancesheet.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunder
differentcontractsarenotoffset.
17.ContractCostsContractcostsincludeincrementalcostsincurredforobtainingcontractsandcontractperformancecosts.TheincrementalcostincurredforobtainingthecontractreferstothecostthattheCompanywillnotincurwithoutobtainingthecontract(suchassalescommission,etc.).Ifthecostisexpectedtoberecovered,theCompanywillrecognizeitasthecontractacquisitioncostasanasset.OtherexpensesincurredbytheCompanytoobtainthecontractexcepttheincrementalcostexpectedtoberecoveredareincludedinthecurrentprofitsandlosseswhenincurred.
Ifthecostincurredfortheperformanceofthecontractdoesnotfallwithinthescopeofotheraccountingstandardsforenterprisessuchasinventoryandmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasthecontractperformancecostasanasset:
①Suchcostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredonlyduetothiscontract;
②SuchcostincreasestheresourcesoftheCompanyforfulfillingitsperformanceobligationsinthefuture;
③Thecostisexpectedtoberecovered.
Assetsrecognizedbycontractacquisitioncostandassetsrecognizedbycontractperformancecost(hereinafterreferredtoas"AssetsRelatedtoContractCost")shallbeamortizedonthesamebasisastherevenuerecognitionofgoodsorservicesrelatedtotheassets,andshallbeincludedincurrentprofitsandlosses.
Whenthebookvalueoftheassetsrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanywillaccrueimpairmentprovisionoftheexcessandrecognizeitastheassetimpairmentloss:
①TheremainingconsiderationexpectedtobeobtainedbytheCompanyduetothetransferofgoodsorservicesrelatedtotheasset;
②Theestimatedcosttobeincurredfortransferringtherelatedgoodsorservices.
Thecontractperformancecostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognition,whichshallbelistedin"Inventory",andtheamortizationperiodformorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognitionshallbelistedin"OtherNon-currentAssets".
Thecontractacquisitioncostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatinitialrecognition,andshallbelistedin"OtherCurrentAssets".Theamortizationperiodforinitialrecognitionshallexceedoneyearoronenormalbusinesscycle,andshallbelistedin"OtherNon-currentAssets".
18.Held-for-saleassets
(1)Classificationandmeasurementofnon-currentassetsordisposalgroupsheldforsaleWhenthebookvalueofanon-currentassetordisposalgroupisrecoveredbytheCompanymainlybysellingit(includingtheexchangeofnon-monetaryassetswithcommercialnation)ratherthancontinuouslyusingit,thenon-currentassetordisposalgroupisclassifiedasheldforsale.Theabove-mentionednon-currentassetsdonotincludeinvestmentrealestatemeasuredbyfairvaluemodel,biologicalassetsmeasuredbynetamountoffairvalueminussellingexpenses,assetsformedbyemployeecompensation,financialassets,deferredincometaxassetsandrightsarisingfrominsurancecontracts.
Thedisposalgroupreferstoagroupofassetsdisposedoftogetherbysaleorothermeansinatransactionasawhole,andliabilitiesdirectlyrelatedtotheseassetstransferredinthetransaction.Undercertaincircumstances,thedisposalgroupincludesgoodwillobtainedinbusinesscombination,etc.Meanwhile,non-currentassetsordisposalgroupsthatmeetthefollowingconditionsareclassifiedasheld-for-sale:accordingtothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thenon-currentassetsordisposalgroupscanbesoldimmediatelyunderthecurrentsituation;Thesaleisverylikelytohappen,thatis,aresolutionhasbeenmadeonasaleplanandacertainpurchasecommitmenthasbeenobtained,anditisexpectedthatthesalewillbecompletedwithinoneyear.Ifthecontroloversubsidiariesislostduetothesaleofinvestmentsinsubsidiaries,whetherornottheCompanyretainspartoftheequityinvestmentsafterthesale,whentheinvestmentinsubsidiariestobesoldmeetstheclassificationconditionsofholdingforsale,theinvestmentinsubsidiarieswillbeclassifiedasheld-for-saleasawholeinindividualfinancialstatements,andallassetsandliabilitiesofsubsidiarieswillbeclassifiedasheld-for-saleinconsolidatedfinancialstatements.
Whenthenon-currentassetsordisposalgroupsheldforsaleareinitiallymeasuredorre-measuredonthebalancesheetdate,thedifferencebetweenthebookvalueandthenetamountafterdeductionofthesalesexpensesfromthefairvalueisrecognizedastheassetimpairmentloss.Fortheamountofassetimpairmentlossrecognizedbythedisposalgroupheldforsale,thebookvalueofgoodwillinthedisposalgroupisoffsetfirst,andthenthebookvalueofnon-currentassetsinthedisposalgroupisoffsetproportionally.
Ifthenetamountofnon-currentassetsheldforsaleordisposalgroup'sfairvalueminussalesexpensesincreasesonthesubsequentbalancesheetdate,thepreviouslywritten-downamountwillberestoredandreversedwithintheamountofassetimpairmentlossrecognizedafterbeingclassifiedasheld-for-sale,andthereversedamountwillbeincludedinthecurrentprofitsandlosses.Thebookvalueofoffsetgoodwillshallnotbereversed.
Non-currentassetsheldforsaleandassetsindisposalgroupheldforsalearenotdepreciatedoramortized;Interestandotherexpensesofliabilitiesindisposalgroupheldforsalecontinuetoberecognized.Allorpartoftheinvestmentsofassociatedenterprisesorjointventuresclassifiedasheldforsaleshallbeaccountedforbytheequitymethodforthoseclassifiedasheldforsale,whilethoseretained(notclassifiedasheldforsale)shallcontinuetobeaccountedforbytheequitymethod;WhentheCompanylosessignificantinfluenceontheassociatedenterprisesandjointventuresduetothesale,itshallstopusingtheequitymethod.
Ifacertainnon-currentassetordisposalgroupisclassifiedasheld-for-sale,buttheclassificationconditionsofheld-for-salearenolongermet,theCompanywillstopclassifyingitasheld-for-saleandmeasureitaccordingtothelowerofthefollowingtwoamounts:
①Thebookvalueoftheassetordisposalgroupbeforeitisclassifiedasheld-for-sale,andtheamountadjustedaccordingtothedepreciation,amortizationorimpairmentthatshouldhavebeenrecognizedwithoutbeingclassifiedasheld-for-sale;
②Recoverableamount.
19.Creditor'srightsinvestment
Creditor'srightsinvestmentmainlyaccountsforbondinvestmentmeasuredbyamortizedcost,etc.TheCompanyhasmeasuredtheimpairmentlossbasedontheamountofexpectedcreditlossesinthenext12monthsortheentireduration,basedonwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.
20.OtherCreditor'srightsinvestmentForcreditor'srightsinvestmentandothercreditor'srightsinvestment,theCompanycalculatestheexpectedcreditlossaccordingtothenatureoftheinvestment,thecounterpartyandvarioustypesofriskexposureandbasedontheexpectedcreditlossrateinthenext12monthsorthewholeduration.
21.Long-termaccountreceivableNone
22.Long-termequityinvestmentsLong-termequityinvestmentincludesequityinvestmentinsubsidiaries,jointventuresandassociatedenterprises.IftheCompanycanexertsignificantinfluenceontheinvestee,itisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentformingbusinesscombination:thelong-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrolshallbetakenastheinvestmentcostaccordingtothebookvalueshareoftheowner'sequityofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate;Long-termequityinvestmentobtainedbybusinesscombinationnotunderthesamecontrolshallberegardedastheinvestmentcostoflong-termequityinvestmentaccordingtothecombinationcost.Forlong-termequityinvestmentobtainedbyothermeans:Forlong-termequityinvestmentobtainedbypaymentincash,theactualpurchasepriceistakenastheinitialinvestmentcost;Forlong-termequityinvestmentobtainedbyissuingequitysecurities,thefairvalueofissuingequitysecuritiesistakenastheinitialinvestmentcost.
(2)SubsequentmeasurementandprofitandlossrecognitionmethodInvestmentinsubsidiariesshallbeaccountedbycostmethod,unlesstheinvestmentmeetstheconditionsofholdingforsale;Investmentinassociatedenterprisesandjointventuresshallbeaccountedforbyequitymethod.Forthelong-termequityinvestmentcalculatedbythecostmethod,exceptforthecashdividendsorprofitsthathavebeendeclaredbutnotyetissuedandthatincludedintheactualpaymentorconsideration,thecashdividendsorprofitsdeclaredanddistributedbytheinvesteearerecognizedasinvestmentincomeandincludedinthecurrentprofitsandlosses.
Iftheinitialinvestmentcostoflong-termequityinvestmentaccountedbyequitymethodisgreaterthanthefairvalueshareofidentifiablenetassetsoftheinvestee,theinvestmentcostoflong-termequityinvestmentshallnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteeatthetimeofinvestment,thebookvalueofthelong-termequityinvestmentshallbeadjusted,andthedifferenceshallbeincludedintheprofitandlossofthecurrentinvestmentperiod.
Incaseofaccountingbyequitymethod,theinvestmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofnetprofitsandlossesandothercomprehensiveincomerealizedbytheinvestee,andthebookvalueoflong-termequityinvestmentisadjustedatthesametime;Accordingtotheprofitorcashdividenddeclaredanddistributedbytheinvestee,theparttobeentitledtoshallbecalculated,andthebookvalueoflong-termequityinvestmentshallbereducedcorrespondingly;Theinvesteeadjuststhebookvalueoflong-termequityinvestmentforotherchangesinowner'sequityexceptnetprofitsandlosses,othercomprehensiveincomeandprofitdistributionandincludesthemincapitalreserve(othercapitalreserve).Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,thefairvalueofidentifiableassetsoftheinvesteeatthetimeofinvestmentistakenasthebasis,andthenetprofitoftheinvesteeisrecognizedafteradjustmentaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.
Ifitcanexertsignificantinfluenceontheinvesteeduetoadditionalinvestmentorimplementjointcontrolbutdoesnotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplusthenewinvestmentcostshallbetakenastheinitialinvestmentcostcalculatedbytheequitymethodinstead.Thedifferencebetweenthefairvalueandbookvalueoftheoriginalequityontheconversiondate,aswellasthe
accumulatedfairvaluechangesoriginallyincludedinothercomprehensiveincome,aretransferredtothecurrentprofitsandlossesaccountedforbytheequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvesteeislostduetothedisposalofsomeequityinvestments,theremainingequityafterdisposalshallbeaccountedforaccordingtoAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsonthedateoflossofjointcontrolorsignificantinfluence,andthedifferencebetweenfairvalueandbookvalueshallbeincludedinthecurrentprofitsandlosses.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheadoptionoftheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvesteewhentheequitymethodisterminated;Changesinotherowners'equityrelatedtotheoriginalequityinvestmentaretransferredintocurrentprofitsandlosses.Ifthecontrolovertheinvesteeislostduetothedisposalofpartofequityinvestment,andtheremainingequityafterdisposalcanjointlycontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotheequitymethodinstead,andtheremainingequityshallberegardedasbeingadjustedbytheequitymethodwhenitisacquired;Iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotherelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolshallbeincludedinthecurrentprofitsandlosses.
IftheCompany'sshareholdingratiodecreasesduetocapitalincreaseofotherinvestors,causinglossofcontrol,butitcanexercisejointcontrolorexertsignificantinfluenceontheinvestee,theshareofnetassetsincreasedbytheinvesteeduetocapitalincreaseandshareexpansionshallberecognizedaccordingtothenewshareholdingratio,andthedifferencebetweentheoriginalbookvalueoflong-termequityinvestmentcorrespondingtothedecreasedshareholdingratioshallbeincludedinthecurrentprofitsandlosses;Then,accordingtothenewshareholdingratio,itisregardedasbeingadjustedbytheequitymethodwhentheinvestmentisobtained.
ForunrealizedinternaltransactiongainsandlossesbetweentheCompanyanditsassociatedenterprisesandjointventures,theportionattributabletotheCompanyshallbecalculatedaccordingtotheshareholdingratio,andinvestmentgainsandlossesshallberecognizedonthebasisofoffset.However,iftheunrealizedinternaltransactionlossesbetweentheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassets,theywillnotbeoffset.
(3)Basisfordeterminationofjointcontrolandsignificantinfluenceontheinvestee
Jointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andtherelevantactivitiesofsucharrangementmustbeunanimouslyagreedbytheparticipantswhosharethecontrolrightsbeforeanydecisionismade.Whenjudgingwhetherthereiscommoncontrol,firstly,judgewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondly,judgewhetherthedecision-makingofactivitiesrelatedtothearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.Ifallparticipantsoragroupofparticipantsmustactinconcerttodecidetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoragroupofparticipantscollectivelycontrolthearrangement;Iftwoormoreparticipantscancollectivelycontrolanarrangement,itdoesnotconstitutejointcontrol.Whenjudgingwhetheritisjointcontrol,theprotectiverightsentitledtoarenotconsidered.
Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestee,the
influenceofthevotingsharesoftheinvesteedirectlyorindirectlyheldbytheinvestorandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesshallbeconsidered,includingtheinfluenceofthecurrentconvertiblewarrants,shareoptionsandconvertiblecorporatebondsissuedbytheinvestee.
WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestee,itisgenerallyconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcannotparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseitdoesnothaveasignificantinfluence;WhentheCompanyownslessthan20%(excluding)ofthevotingsharesoftheinvestee,itisgenerallynotconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcanparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseithasasignificantinfluence.
(4)Equityinvestmentheldforsale
Ifallorpartoftheequityinvestmentinanassociatedenterpriseorjointventureisclassifiedasassetsheldforsale,pleaserefertoNoteIII.13forrelevantaccountingtreatment.
Fortheremainingequityinvestmentsthatarenotclassifiedasassetsheldforsale,theequitymethodisadoptedforaccountingtreatment.
Iftheequityinvestmentinanassociatedenterpriseorjointventurethathasbeenclassifiedasheldforsalenolongermeetstheclassificationconditionsofassetsheldforsale,theequitymethodshallbeusedforretrospectiveadjustmentfromthedatethatitisclassifiedasassetsheldforsale.
(5)Testmethodforimpairmentandaccrualmethodforimpairmentprovision
Forinvestmentinsubsidiaries,associatedenterprisesandjointventures,pleaserefertoNoteIII.21fortheaccrualmethodforimpairmentprovision.
23.InvestmentrealestateThemeasurementmodeofinvestmentpropertyThecompanyshalladoptthecostmodetomeasuretheinvestmentproperty.DepreciationorAmortizationMethod
Investmentrealestatereferstorealestateheldforrentorcapitalappreciation,orboth.TheCompany'sinvestmentrealestateincludesleasedlanduserights,landuserightstransferredafterholdingandpreparingforappreciation,andleasedbuildings.
TheCompany'sinvestmentrealestateisinitiallymeasuredaccordingtothecostatthetimeofacquisition,anddepreciationoramortizationisaccruedonscheduleaccordingtotherelevantprovisionsoffixedassetsorintangibleassets.
Forinvestmentrealestatethatissubsequentlymeasuredbycostmodel,pleaserefertoNoteIII.21fortheaccrualmethodofassetimpairment.
Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentrealestateafterdeductionofitsbookvalueandrelatedtaxesshallbeincludedinthecurrentprofitsandlosses.
24.Fixedassets
(1)Recognitionconditionsoffixedassets
TheCompany'sfixedassetsrefertotangibleassetsheldfortheproductionofcommodities,provisionoflaborservices,leasingoroperationandmanagement,withaservicelifeexceedingonefiscalyear.Onlywhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheenterpriseandthecostofthefixedassetscan
bemeasuredreliably,canthefixedassetsberecognized.ThefixedassetsoftheCompanyareinitiallymeasuredaccordingtotheactualcostatthetimeofacquisition.SubsequentexpendituresrelatedtofixedassetsareincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheCompanyandthecostcanbemeasuredreliably;Dailyrepairexpensesoffixedassetsthatdonotmeettherequirementsforsubsequentexpendituresofcapitalizationoffixedassetsareincludedinthecurrentprofitsandlossesorthecostofrelatedassetsaccordingtothebeneficiarieswhentheyoccur.Forthereplacedpart,thebookvalueisderecognized.
(2)Themethodfordepreciation
| Category | Themethodfordepreciation | Expectedusefullife（Year） | Estimatedresidualvalue | Depreciation |
| HouseandBuilding-Production | Straight-linemethod | 35 | 4.00% | 2.74% |
| HouseandBuilding-Non-Production | Straight-linemethod | 40 | 4.00% | 2.40% |
| DecorationofFixedassets | Straight-linemethod | 10 | 10.00% | |
| Machineryandequipment | Straight-linemethod | 10-14 | 4.00% | 9.60%-6.86% |
| Transportationequipment | Straight-linemethod | 8 | 4.00% | 12.00% |
| Electronicequipment | Straight-linemethod | 8 | 4.00% | 12.00% |
| Otherequipment | Straight-linemethod | 8 | 4.00% | 12.00% |
Forthefixedassetswiththeimpairmentprovisionwithdrawn,theaccumulativeamountofthewithdrawnfixedassetsimpairmentprovisionshallbealsodeductedtocalculateanddeterminetherateofdepreciation.
（3）Identificationbasis,valuationmethodanddepreciationmethodoffixedassetsleasedbyfinancingNone
25.Constructioninprogress
ThecostofconstructioninprogressoftheCompanyisdeterminedaccordingtotheactualprojectexpenditure,includingallnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachestheintendedusablestate,andotherrelatedexpenses.
Constructioninprogressistransferredtofixedassetswhenitreachesthescheduledusablestate.
SeeNoteIII.21forthemethodofdepreciationofassetsinconstructioninprogress.
26.Borrowingcosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsIftheborrowingcostsincurredbytheCompanycanbedirectlyattributedtothepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions,theywillbecapitalizedandincludedintherelevantassetcosts;Otherborrowingcosts,whenincurred,arerecognizedasexpensesaccordingtotheamountincurred,andincludedincurrentprofitsandlosses.Borrowingcostsshallbecapitalizediftheymeetthefollowingconditionsatthesametime:
①Assetexpenditurehasalreadyoccurred,includingtheexpenditureincurredintheformofpaymentincash,transferofnon-cashassetsorassumptionofinterest-bearingdebtsforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions;
②Borrowingcostshavealreadyoccurred;
③Thepurchase,constructionorproductionactivitiesnecessarytomaketheassetsreachtheintendedusableorsaleablestatehavestarted.
(2)Capitalizationperiodofborrowingcosts
Capitalizationofborrowingcostsshallbestoppedwhenassetseligibleforcapitalizationacquired,constructedorproducedbytheCompanyreachtheintendedusableorsaleablestate.Borrowingcostsincurredaftertheassetsinlinewiththecapitalizationconditionsreachtheintendedusableorsaleablestateshallberecognizedasexpensesaccordingtotheamountincurredwhentheyoccur,andshallbeincludedincurrentprofitsandlosses.
Iftheassetsthatmeetthecapitalizationconditionsareabnormallyinterruptedintheprocessofpurchase,constructionorproduction,andtheinterruptionlastsexceeds3months,thecapitalizationofborrowingcostsshallbesuspended;Borrowingcostsduringnormalinterruptionperiodcontinuetobecapitalized.
(3)Capitalizationrateofborrowingcostsandcalculationmethodofcapitalizationamount
Theinterestexpensesactuallyincurredinthecurrentperiodofspecialborrowingshallbecapitalizedafterdeductingtheinterestincomefromtheunusedborrowingfundsdepositedinthebankortheinvestmentincomefromtemporaryinvestment;Thecapitalizationamountofgeneralborrowingsisdeterminedbymultiplyingtheweightedaverageoftheaccumulatedassetexpenditureoverthespecialloanbythecapitalizationrateoftheoccupiedgeneralborrowings.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaverageinterestrateofgeneralborrowings.
Duringthecapitalizationperiod,alltheexchangedifferencesofspecialborrowingsinforeigncurrencyarecapitalized;Exchangedifferencesofgeneralborrowingsinforeigncurrencyareincludedincurrentprofitsandlosses.
27.BiologicalAssetsNone
28.Oil&GasassetsNone
29.Righttouseassets
(1)Conditionsforrecognizingtheright-to-useassets
TheCompany'sright-to-useassetsreferstotherightoftheCompanyasthelesseetousetheleasedassetsduringtheleaseterm.Onthestartdateoftheleaseterm,theright-to-useassetsisinitiallymeasuredatcost.Thecostincludes:theinitialmeasurementamountofleaseliabilities;Theleasepaymentamountissuedonorbeforethestartdateoftheleaseterm,whereifthereisaleaseincentive,theamountrelatedtotheentitledleaseincentiveshallbededucted;TheinitialdirectexpensesincurredbytheCompanyasthelessee;ThecostexpectedtobeincurredbytheCompanyasthelesseetodismantleandremovetheleasedassets,restorethesitewheretheleasedassetsarelocatedorrestoretheleasedassetstothestateagreedintheleaseterms.TheCompany,asthelessee,recognizesandmeasuresthedemolitionandrestorationcostsinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Subsequentadjustmentsshallbemadetoanyremeasurementofleaseliabilities.
(2)Depreciationmethodofright-to-useassetsTheCompanyadoptsthestraight-linemethodtoaccruedepreciation.IftheCompany,asthelessee,canreasonablydeterminethattheownershipoftheleasedassetsisacquiredattheexpirationoftheleaseterm,depreciationshallbeaccruedwithintheremainingservicelifeoftheleasedassets.Ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetscanbeobtainedattheexpirationoftheleaseterm,depreciationshallbeaccruedduringtheleasetermortheremainingservicelifeoftheleasedassets,whicheverisshorter.SeeNoteV.21fortheimpairmenttestmethodoftheright-to-useassetsandtheprovisionmethodforimpairment.
30.Intangibleassets
(1)Valuationmethod,servicelifeandimpairmenttestTheintangibleassetsoftheCompanyincludelanduserights,proprietarytechnologyandsoftware.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedandjudgedwhentheyareacquired.Iftheservicelifeislimited,theintangibleassetsshallbeamortizedwithintheexpectedservicelifebytheamortizationmethodthatcanreflecttheexpectedrealizationmodeoftheeconomicbenefitsrelatedtotheassetsfromthetimewhentheyareavailableforuse;Ifitisimpossibletoreliablydeterminetheexpectedrealizationmode,theyshallbeamortizedbystraight-linemethod;Intangibleasset\swithuncertainservicelifearenotamortized.Amortizationmethodsofintangibleassetswithlimitedservicelifeareasfollows:
| Items | Usefullife（year） | Amortizationmethod | Notes |
| Landuseright | 50 | Straight | |
| Specialtechnology | 15 | Straight | |
| Software | 5 | Straight |
Attheendofeachyear,theCompanyrecheckstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife,adjuststheoriginalestimateifitisdifferentfromthepreviousestimate,andhandlesthechangeaccordingtotheaccountingestimate.SeeNoteV.21forthemethodofdepreciationofassetsforIntangibleassets
（2）AccountingPolicyofInternalResearchandDevelopmentExpenditure
TheCompanydividestheexpenditureofinternalresearchanddevelopmentprojectsintoexpendituresin
researchstageandexpendituresindevelopmentstage.Expendituresinresearchstageareincludedincurrentprofitsandlosseswhentheyoccurs.Expendituresindevelopmentstagecanonlybecapitalizediftheymeetthefollowingconditions:itistechnicallyfeasibletocompletetheintangibleassetssothattheycanbeusedorsold;Thereistheintentiontocompletetheintangibleassetsanduseorsellthem;Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingthosethatcanprovetheexistenceofmarketforproductsproducedbytheintangibleassetsortheexistenceofmarketfortheintangibleassetsthemselves,andthatfortheintangibleassetsthatwillbeusedinternally,theirusefulnesscanbeproved;Therearesufficienttechnical,financialandotherresourcestocompletethedevelopmentoftheintangibleassetsandtheabilitytouseorselltheintangibleassets;Expendituresattributabletothedevelopmentstageoftheintangibleassetscanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsareincludedincurrentprofitsandlosses.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftertheaboveconditionsaremetandaprojectisapprovedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Capitalizedexpendituresindevelopmentstagearelistedasdevelopmentexpendituresonthebalancesheet,andareconvertedintointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
31.Long-termAssetsImpairmentTheassetimpairmentoflong-termequityinvestmentofsubsidiaries,associatedenterprisesandjointventures,investmentrealestate,fixedassets,constructioninprogress,intangibleassets,goodwill,etc.(exceptinventory,investmentrealestatemeasuredaccordingtofairvaluemodel,deferredincometaxassetsandfinancialassets)shallbedeterminedaccordingtothefollowingmethods:
Onthebalancesheetdate,judgewhetherthereisanysignofpossibleimpairmentofassets.Ifthereisanysignofimpairment,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Thegoodwillformedbybusinesscombination,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheusablestatearetestedforimpairmenteveryyearregardlessofwhetherthereisanysignofimpairment.
Therecoverableamountisdeterminedaccordingtothehigherofthenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheestimatedfuturecashflowoftheasset.TheCompanyestimatesitsrecoverableamountonthebasisofindividualassets;Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theidentificationofassetgroupisbasedonwhetherthemaincashinflowgeneratedbyassetgroupisindependentofcashinflowofotherassetsorassetgroups.
Whentherecoverableamountofanassetorassetgroupislowerthanitsbookvalue,theCompanywillwritedownitsbookvaluetotherecoverableamount,andthewritten-downamountwillbeincludedinthecurrentprofitsandlosses,andthecorrespondingassetimpairmentprovisionwillbeaccruedatthesametime.
Asfarastheimpairmenttestofgoodwillisconcerned,thebookvalueofgoodwillformedbybusinesscombinationisamortizedtorelevantassetgroupsaccordingtoareasonablemethodfromtheacquisitiondate;Ifitisdifficulttoamortizetotherelatedassetgroup,itshallbeamortizedtotherelatedassetgroupportfolio.Therelatedassetgrouporassetgroupportfolioisonethatcanbenefitfromthesynergyeffectofbusinesscombination,andisnotlargerthanthereportingsegmentdeterminedbytheCompany.
Intheimpairmenttest,iftherearesignsofimpairmentintheassetgrouporassetgroupportfoliorelatedtogoodwill,firstly,theassetgrouporassetgroupportfoliowithoutgoodwillshallbetestedforimpairment,therecoverableamountshallbecalculated,andthecorrespondingimpairmentlossshallberecognized.Then
impairmenttestshallbecarriedoutontheassetgrouporassetgroupportfoliocontaininggoodwill,anditsbookvalueshallbecomparedwiththerecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossofgoodwillshallberecognized.Oncetheassetimpairmentlossisrecognized,itwillnotbereversedinfutureaccountingperiods.
32.Long-termdeferredexpenses
Thelong-termdeferredexpensesincurredbytheCompanyarepricedatactualcostandamortizedequallyaccordingtotheexpectedbenefitperiod.Forlong-termdeferredexpenseitemsthatcannotbenefitfutureaccountingperiods,alltheiramortizedvaluesareincludedincurrentprofitsandlosses.
33.Contractliabilities
ContractliabilitiesrefertotheobligationoftheCompanytotransfergoodstocustomersforthereceivedorreceivableconsiderationfromcustomers.IfthecustomerhaspaidthecontractconsiderationortheCompanyhasobtainedtheunconditionalcollectionrightbeforetheCompanytransfersthegoodstothecustomer,theCompanywilllistthereceivedorreceivableamountasthecontractliabilityattheearlieroftheactualpaymentmadebythecustomerandtheduedateforpayment.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunderdifferentcontractsarenotoffset.
34.Remuneration
1.AccountingTreatmentMethodofShort-termCompensation
Duringtheaccountingperiodwhenemployeesprovideservices,theCompanyrecognizestheactualwages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,work-relatedinjuryinsurancepremiumsandmaternityinsurancepremiumspaidforemployeesandhousingprovidentfundsasliabilities,andincludesthemincurrentprofitsandlossesorrelatedassetcosts.Iftheliabilityisnotexpectedtobefullypaidwithintwelvemonthsaftertheendoftheannualreportingperiodwhenemployeesproviderelevantservices,andthefinancialimpactissignificant,theliabilitywillbemeasuredatthediscountedamount.
2.AccountingTreatmentMethodofSeveranceBenefitPlans
After-servicebenefitplanincludesdefinedcontributionplananddefinedbenefitplans.Wherethesetdepositplanreferstothepost-employmentbenefitsplaninwhichtheenterprisenolongerundertakesfurtherpaymentobligationsafterpayingfixedfeestoindependentfunds;Setbenefitplanreferstothepost-employmentbenefitsplanexceptthesetdepositplan.
Setdepositplan
Thesetdepositplanincludesbasicold-ageinsurance,unemploymentinsuranceandenterpriseannuityplan,etc.
Inadditiontothebasicold-ageinsurance,theCompanyestablishesanenterpriseannuityplan("annuityplan")
accordingtotherelevantpoliciesofthenationalenterpriseannuitysystem,andemployeescanvoluntarily
participateintheannuityplan.Moreover,theCompanyhasnoothersignificantsocialsecuritycommitments
foremployees.
Duringtheaccountingperiodwhenemployeesprovideservices,theamountthatshouldbepaidaccordingtothesetdepositplanisrecognizedasaliabilityandincludedinthecurrentprofitsandlossesorrelatedassetcosts.
Setbenefitplan
Forsetbenefitplans,anactuarialvaluationisconductedbyanindependentactuaryontheannualbalancesheetdate,andthecostofbenefitprovisionisdeterminedbytheexpectedcumulativebenefitunitmethod.The
employeeremunerationcostcausedbysetbenefitplansoftheCompanyincludesthefollowingcomponents:
①Servicecost,includingcurrentservicecost,pastservicecostandsettlementgainorloss.Where:thecurrentservicecostreferstotheincreaseofthepresentvalueofsetbenefitplanobligationscausedbytheemployeesprovidingservicesinthecurrentperiod;Pastservicecostreferstotheincreaseordecreaseofthepresentvalueofsetbenefitplanobligationsrelatedtoemployeeserviceinpreviousperiodcausedbythemodificationofsetbenefitplans.
②Thenetinterestofsetbenefitplan'snetliabilitiesornetassets,includinginterestincomeofplannedassets,interestexpenseofsetbenefitplanobligationsandinterestaffectedbyassetceiling.
③Changesarisingfromremeasurementofnetliabilitiesornetassetsofsetbenefitplans.
Unlessotheraccountingstandardsrequireorallowemployeebenefitcoststobeincludedinassetcosts,theCompanywillincludetheaboveitems①and②incurrentprofitsandlosses;Includeitem③inothercomprehensiveincomeandsuchitemwillnotbetransferredbacktoprofitorlossinthesubsequentaccountingperiod.Whentheoriginalsetbenefitplanisterminated,allthepartsoriginallyincludedinothercomprehensiveincomewillbecarriedforwardtoundistributedprofitswithinthescopeofequity.
3.AccountingTreatmentMethodofDemissionWelfare
IftheCompanyprovidesdismissalbenefitstoemployees,theemployeeremunerationliabilitiesarisingfromthedismissalbenefitsshallberecognizedandincludedinthecurrentprofitsandlossesontheearlierofthefollowingdates:WhentheCompanycannotunilaterallywithdrawthedismissalbenefitsprovidedbytheterminationoflaborrelationsplanorlayoffproposal;WhentheCompanyrecognizesthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofdismissalbenefits.
Iftheemployee'sinternalretirementplanisimplemented,theeconomiccompensationbeforetheofficialretirementdateisthedismissalbenefit.Fromthedaywhentheemployeestopsprovidingservicestothenormalretirementdate,thewagesoftheretiredemployeesandthesocialinsurancepremiumspaidwillbeincludedinthecurrentprofitsandlossesatonetime.Economiccompensationaftertheofficialretirementdate(suchasnormalpension)shallbetreatedaspost-employmentbenefits.
4.AccountingTreatmentMethodofOtherLong-termEmployeeBenefits
Ifotherlong-termemployeebenefitsprovidedbytheCompanytoemployeesmeettheconditionsforthesetdepositplan,theyshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthesetdepositplan.Ifitmeetsthesetbenefitplans,itshallbehandledinaccordancewiththeabove-mentionedrelevantregulationsonsetbenefitplans,butthepartoftherelatedemployeeremunerationcost,whichis"thechangecausedbyremeasurementofsetbenefitplan'snetliabilitiesornetassets",shallbeincludedinthecurrentprofitsandlossesorrelatedassetcosts.
35.LeaseliabilitiesNone
36.EstimatedLiabilities
Iftheobligationrelatedtocontingenciesmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasestimatedliabilities:
(1)SuchobligationisthecurrentobligationundertakenbytheCompany;
(2)TheperformanceofsuchobligationislikelytoleadtotheoutflowofeconomicbenefitsfromtheCompany;
(3)Theamountofsuchobligationcanbemeasuredreliably.Estimatedliabilitiesareinitiallymeasuredaccordingtothebestestimateofexpenditurerequiredtofulfillrelevantcurrentobligations,andfactorssuchasrisks,uncertaintiesandtimevalueofmoneyrelatedtocontingenciesarecomprehensivelyconsidered.Ifthetimevalueofmoneyhasgreatinfluence,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflow.TheCompanyrechecksthebookvalueoftheestimatedliabilitiesonthebalancesheetdate,andadjuststhebookvaluetoreflectthecurrentbestestimate.
Ifallorpartoftheexpensesrequiredtopayofftherecognizedestimatedliabilitiesareexpectedtobecompensatedbyathirdpartyorotherparties,thecompensationamountcanonlyberecognizedasanassetwhenitisbasicallyconfirmedthatitcanbereceived.Therecognizedcompensationamountshallnotexceedthebookvalueoftherecognizedliabilities.
37.Sharepayment
(1)Typesofshare-basedpayment
Theshare-basedpaymentoftheCompanyisdividedintoequity-settledshare-basedpaymentandcash-settledshare-basedpayment.
(2)Methodfordeterminingfairvalueofequityinstruments
ThefairvalueofequityinstrumentssuchasoptionsgrantedbytheCompanywithactivemarketisdeterminedaccordingtothequotedpriceintheactivemarket.Thefairvalueofgrantedequityinstrumentssuchasoptionswithoutactivemarketisdeterminedbyoptionpricingmodel.Theselectedoptionpricingmodelconsidersthefollowingfactors:A.Theexercisepriceofoptions;B.Thevalidityperiodoftheoption;C.Thecurrentpriceoftheunderlyingshares;D.Estimatedvolatilityofshareprice;E.Expecteddividendofshares;F.Risk-freeinterestratewithinthevalidityperiodoftheoption.
(3)Basisfordeterminingthebestestimationoffeasibleequityinstruments
Oneachbalancesheetdateduringthewaitingperiod,theCompanymakesthebestestimatebasedonthelatestavailablefollow-upinformationsuchaschangesinthenumberofemployeeswithfeasiblerights,andrevisestheestimatednumberofequityinstrumentswithfeasiblerights.Onthevestingdate,thefinalestimatednumberofvestingrightsandinterestsinstrumentsshallbeconsistentwiththeactualnumberofvestingrights.
(4)Accountingtreatmentrelatedtoimplementation,modificationandterminationofshare-basedpaymentplan
Equity-settledshare-basedpaymentismeasuredatthefairvalueofequityinstrumentsgrantedtoemployees.Iftherightisexercisedimmediatelyafterthegrant,therelevantcostsorexpensesshallbeincludedinthefairvalueofequityinstrumentsonthegrantdate,andthecapitalreserveshallbeincreasedaccordingly.Iftherightscanbeexercisedonlyaftertheserviceswithinthewaitingperiodarecompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthewaitingperiod,basedonthebestestimateofthenumberofequityinstrumentsavailable,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorexpensesandcapitalreserveaccordingtothefairvalueonthegrantdateofequityinstruments.Afterthevestingdate,therecognizedrelatedcostsorexpensesandthetotalowner'sequitywillnotbeadjusted.
Equity-settledshare-basedpaymentshallbemeasuredaccordingtothefairvalueofliabilitiescalculatedanddeterminedonthebasisofsharesorotherequityinstrumentsundertakenbytheCompany.Iftherightisexercisedimmediatelyafterthegrant,thefairvalueoftheliabilitiesassumedbytheCompanyshallbeincludedintherelevantcostsorexpensesonthegrantdate,andtheliabilitiesshallbeincreasedaccordingly.Forcash-settledshare-basedpaymentthatisfeasibleonlyaftertheservicewithinthewaitingperiodiscompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthewaitingperiod,basedonthebest
estimationofthefeasibilityandaccordingtothefairvalueoftheliabilitiesassumedbytheCompany,theservicesobtainedinthecurrentperiodareincludedinthecostsorexpensesandcorrespondingliabilities.Oneachbalancesheetdateandsettlementdatebeforethesettlementofrelatedliabilities,thefairvalueofliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitsandlosses.
WhentheCompanymodifiestheshare-basedpaymentplan,ifthefairvalueofthegrantedequityinstrumentsisincreasedbymodification,theincreaseoftheservicesobtainedshallberecognizedaccordingtotheincreaseofthefairvalueoftheequityinstruments;Ifthenumberofgrantedequityinstrumentsisincreasedbymodification,thefairvalueoftheincreasedequityinstrumentswillberecognizedastheincreaseinservicesobtainedaccordingly.Theincreaseoffairvalueofequityinstrumentsreferstothedifferencebetweenthefairvaluesofequityinstrumentsbeforeandaftermodificationonthemodificationdate.Ifthetotalfairvalueofshare-basedpaymentisreducedbymodificationorthetermsandconditionsoftheshare-basedpaymentplanaremodifiedinotherwaysthatareunfavorabletoemployees,theaccountingtreatmentoftheobtainedserviceswillcontinue,asifwithnochangesunlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentsarecancelled(exceptthosecancelledduetonon-marketconditionsthatdonotmeetthefeasiblerightsconditions),theCompanywilltreatthecancellationofthegrantedequityinstrumentsasanacceleratedexercise,andimmediatelyrecordtheamounttoberecognizedintheremainingwaitingperiodintothecurrentprofitsandlosses,andrecognizethecapitalreserveatthesametime.Iftheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailstomeetitduringthewaitingperiod,theCompanywilltreatitasacancellationforgrantingequityinstruments.
38.OtherfinancialinstrumentssuchaspreferredstocksandperpetualbondsNone
39.RevenueAccountingpoliciesadoptedforincomerecognitionandmeasurement
(1)Generalprinciples
TheCompanyhasfulfilledtheperformanceobligationinthecontract,thatis,torecognizetherevenuewhenthecustomerobtainsthecontrolrightofrelatedgoodsorservices.
Ifthecontractcontainstwoormoreperformanceobligations,theCompanywillamortizethetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractstartdate,andmeasuretheincomeaccordingtothetransactionpriceamortizedtoeachindividualperformanceobligation.
Whenoneofthefollowingconditionsismet,theCompanywillfulfillitsperformanceobligationswithinacertainperiodoftime;Otherwise,itperformstheperformanceobligationatacertaintime:
①ThecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformanceatthesametimeoftheitsperformance.
②CustomerscancontrolthegoodsunderconstructionduringtheperformanceoftheCompany.
③ThecommoditiesproducedduringtheperformanceoftheCompanyhaveirreplaceableuses,andtheCompanyhastherighttocollectpaymentfortheperformancepartaccumulatedsofarduringthewholecontractperiod.
Fortheperformanceobligationsperformedwithinacertainperiodoftime,theCompanyrecognizestheincomeaccordingtotheperformanceprogresswithinthatperiod.Iftheperformanceprogresscannotbereasonablydetermined,andthecostincurredoftheCompanyisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonably
determined.Forobligationsperformedatacertaintime,theCompanyshallrecognizetheincomeatthetimewhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetheracustomerhasobtainedcontrolofgoodsorservices,theCompanywillconsiderthefollowingsigns:
①TheCompanyhasthecurrentrighttoreceivepaymentforthegoodsorservices,thatis,thecustomerhasthecurrentpaymentobligationforthegoodsorservices.
②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods.
③TheCompanyhastransferredthephysicalgoodstothecustomer,thatis,thecustomerhasphysicallytakenpossessionofthegoods.
④TheCompanyhastransferredthemainrisksandrewardsontheownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsontheownershipofthegoods.
⑤Thecustomerhasacceptedthegoods.
⑥Othersignsthatthecustomerhasobtainedcontrolofthegoods.
TheCompanyhastransferredgoodsorservicestocustomersandhastherighttoreceiveconsideration(andtherightdependsonotherfactorsexceptthepassageoftime)ascontractassets,andthecontractassetsaredepreciatedonthebasisofexpectedcreditlosses.TherightoftheCompanytocollectconsiderationfromcustomersunconditionally(onlydependingonthepassageoftime)islistedasreceivables.TheobligationoftheCompanytotransfergoodsorservicestocustomersforreceivedorreceivableconsiderationfromcustomersshallberegardedasacontractualliability.
Contractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifthenetamountisdebitbalance,theyarelistedin"ContractAssets"or"OtherNon-currentAssets"accordingtotheirliquidity;Ifthenetamountisthecreditbalance,itshallbelistedin"ContractLiabilities"or"OtherNon-currentLiabilities"accordingtoitsliquidity.
(2)SpecificmethodThespecificmethodofrevenuerecognitionoftheCompanyisasfollows:
Polarizer/Textileandgarmentsalescontract:
Domesticsales:Whenthegoodsaredeliveredtothecustomerandthecustomerhasacceptedthegoods,thecustomerobtainsthecontrolofthegoods,andtheCompanyrecognizestherevenue.
Export:A.WhenthecustomerreceivesgoodsinChina,therevenuerecognitionisthesameas"RevenueRecognitionforDomesticSales";B.Whenthedeliveryplaceofcustomerisoutsidethecountry,theCompanymainlyadoptsFOB.Whenthegoodsaredeliveredfromthewarehouseandhavebeenexportedforcustomsdeclaration,theCompanyrecognizestherevenue.
Revenuefromproperty/accommodationservices:
Intheprocessofproperty/accommodationserviceprovision,theCompanyrecognizesrevenuebystages.TheadoptionofdifferentbusinessmodelsinsimilarbusinessesleadstodifferencesinaccountingpoliciesforincomerecognitionNone
40.Governmentsubsidy
Governmentsubsidiesarerecognizedwhentheymeettheconditionsattachedtogovernmentsubsidiesandcanbereceived.
Governmentsubsidiesformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentsubsidiesfornon-monetaryassetsaremeasuredatfairvalue;Ifthefairvaluecannotbeobtainedreliably,itshallbemeasuredaccordingtothenominalamountRMB1.GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheCompanyforpurchasingandbuildingorforminglong-termassetsinotherways;Inaddition,asagovernmentsubsidyrelatedtoincome.Wherethegovernmentdocumentsdonotspecifytheobjectofthesubsidy,andthesubsidycanformlong-termassets,thepartofthegovernmentsubsidiescorrespondingtothevalueoftheassetsshallberegardedasthegovernmentsubsidyrelatedtotheassets,andtherestshallberegardedasthegovernmentsubsidiesrelatedtotheincome;whereitisdifficulttobedistinguished,governmentsubsidiesasawholearetreatedasincome-relatedgovernmentsubsidies.Governmentsubsidiesrelatedtoassetsoffsetthebookvalueofrelatedassets,orarerecognizedasdeferredincomeandincludedinprofitsandlossesbystagesaccordingtoareasonableandsystematicmethodwithintheservicelifeofrelatedassets.Governmentsubsidiesrelatedtoincome,whichareusedtocompensaterelatedcostsorlossesthathaveoccurred,areincludedincurrentprofitsandlossesoroffsetrelatedcosts;Ifusedtocompensaterelatedcostsorlossesinlaterperiods,theywillbeincludedinthedeferredincome,andincludedinthecurrentprofitsandlossesoroffsetrelatedcostsduringtherecognitionperiodofrelatedcostsorlosses.Governmentsubsidiesmeasuredinnominalamountaredirectlyincludedincurrentprofitsandlosses.TheCompanyadoptsaconsistentapproachtothesameorsimilargovernmentsubsidybusiness.
Governmentsubsidiesrelatedtodailyactivitiesareincludedinotherincomeoroffsetrelatedcostsaccordingtothenatureofeconomicbusiness.Governmentsubsidiesirrelevanttoroutineactivitiesshallbeincludedintothenon-operatingreceiptanddisbursement.
Whentherecognizedgovernmentsubsidyneedstobereturned,ifthebookvalueofrelatedassetsisoffsetduringinitialrecognition,thebookvalueofassetswillbeadjusted;Ifthereisarelevantdeferredincomebalance,thebookbalanceoftherelevantdeferredincomewillbeoffset,andtheexcesswillbeincludedinthecurrentprofitsandlosses;Inothercases,itisdirectlyincludedinthecurrentprofitsandlosses.
Forthediscountinterestofpreferentialpolicyloans,ifthefinanceallocatesthediscountinterestfundstothelendingbank,theactuallyreceivedloanamountistakenastherecordedvalueoftheloan,andtheborrowingcostsarecalculatedaccordingtotheloanprincipalandpreferentialpolicyinterestrate.IfthefinancedirectlyallocatesthediscountinterestfundstotheCompany,thediscountinterestwilloffsettheborrowingcosts.
41.TheDeferredTaxAssets/ThedeferredTaxLiabilities
Incometaxincludescurrentincometaxanddeferredincometax.Exceptforadjustedgoodwillarisingfrombusinesscombinationordeferredincometaxrelatedtotransactionsormattersdirectlyincludedinowner'sequity,theyareallincludedincurrentprofitsandlossesasincometaxexpenses.
Accordingtothetemporarydifferencebetweenthebookvalueofassetsandliabilitiesandthetaxbasisonthebalancesheetdate,theCompanyadoptsthebalancesheetliabilitymethodtoconfirmdeferredincometax.
Alltaxabletemporarydifferencesarerecognizedasrelateddeferredincometaxliabilities,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Initialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:thetransactionisnotabusinesscombination,andthetransactiondoesnotaffectaccountingprofitsortaxableincomewhenitoccurs;
(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociated
enterprises,thetimeforthetemporarydifferencestobereversedcanbecontrolledandthetemporarydifferenceswillprobablynotbereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxdeductionsthatcanbecarriedforwardtolateryears,theCompanyshallrecognizethedeferredincometaxassetsarisingtherefromtotheextentthatitislikelytoobtainthefuturetaxableincomeusedtooffsetthedeductibletemporarydifferences,deductiblelossesandtaxdeductions,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinesscombination,anditdoesnotaffectaccountingprofitortaxableincomewhenthetransactionoccurs;
(2)Fordeductibletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociatedenterprises,correspondingdeferredincometaxassetsarerecognizedifthefollowingconditionsaremetatthesametime:temporarydifferencesarelikelytobereversedintheforeseeablefuture,andtaxableincomeusedtooffsetthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.
Onthebalancesheetdate,theCompanymeasuresdeferredincometaxassetsanddeferredincometaxliabilitiesaccordingtotheapplicabletaxrateduringtheexpectedperiodofrecoveringtheassetsorpayingofftheliabilities,andreflectstheincometaximpactoftheexpectedwayofrecoveringtheassetsorpayingofftheliabilitiesonthebalancesheetdate.
Onthebalancesheetdate,theCompanyrechecksthebookvalueofdeferredincometaxassets.Ifitisunlikelythatsufficienttaxableincomewillbeobtainedinthefutureperiodtooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetswillbewrittendown.Whensufficienttaxableincomeislikelytobeobtained,thewritten-downamountshallbereversed.
42.Lease
(1)AccountingtreatmentmethodofoperatingleaseForrentinoperatinglease,theCompanyshallrecognizethecurrentprofitsandlossesaccordingtothestraight-linemethodineachperiodoftheleaseterm.Theinitialdirectexpensesrelatedtotheoperatingleaseshallbecapitalized,apportionedonthesamebasisastherentalincomeduringtheleaseterm,andincludedinthecurrentprofitsandlossesbystages.Thevariableleasepaymentrelatedtooperatinglease,whichisnotincludedintheleasecollectionamount,shallbeincludedinthecurrentprofitsandlosseswhenactuallyincurred.
(2)AccountingtreatmentmethodoffinancialleaseInfinanciallease,atthebeginningdateoftheleaseterm,theCompanytakesthenetleaseinvestmentastherecordedvalueofthefinancialleasereceivable,andthenetleaseinvestmentisthesumoftheunsecuredresidualvalueandthepresentvalueoftheleasereceiptsthathavenotyetbeenreceivedonthestartdateoftheleasetermdiscountedaccordingtotheinterestrateofthelease.Asthelessor,theCompanycalculatesandrecognizestheinterestincomeofeachperiodintheleasetermaccordingtothefixedperiodicinterestrate.ThevariableleasepaymentsobtainedbytheCompanyasthelessorthatarenotincludedinthemeasurementofnetleaseinvestmentareincludedinthecurrentprofitsandlosseswhenactuallyincurred.ThederecognitionandimpairmentoffinancialleasereceivablesshallbetreatedaccordingtotheprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandAccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets.
43.Otherimportantaccountingpoliciesandaccountingestimates
(1)ChangeofmainaccountingpoliciesAccountingpolicychangescausedbyimplementationofnewfinancialinstrumentstandards
（2）Changesinaccountingestimates
Nosignificantchangesinaccountingestimateshaveoccurredinthecurrentperiod.
44.Changeofmainaccountingpoliciesandestimations
(1)Changeofmainaccountingpolicies
√Applicable□Notapplicable
| Thecontentandreasonforchangeofaccountingpolicy | Approvalprocess | Remarks |
| Inordertoadapttothedevelopmentofmarketeconomy,itstandardizestheaccountingtreatmentofrelatedeconomicbusinessandimprovesthequalityofaccountinginformation.OnDecember7,2018,theMinistryofFinanceissuedtheNoticeonRevisionandIssuanceofAccountingStandardsforBusinessEnterprisesNo.21-Leasing(CS[2018]No.35)(hereinafterreferredtoasthe"NewLeasingStandards").Accordingtotheregulations,theCompanywillimplementtheNewLeasingStandardsfromJanuary1,2021andadjusttherelevantcontentsofaccountingpolicies. | TheexaminedandAdoptedatthe2ndmeetingofthe8thBoardofDirectors | http://www.cninfo.com.cnOnMarch12,2021(AnnouncementNo.:2021-12) |
①NewLeasingStandardsIn2018,theMinistryofFinanceissuedtherevisedAccountingStandardsforBusinessEnterprisesNo.21-Leasing(hereinafterreferredtoas"NewLeasingStandards"),whichshallcomeintoeffectonJanuary1,2019forenterpriseslistedathomeandabroadandthoselistedoverseasandusinginternationalfinancialreportingstandardsoraccountingstandardsforbusinessenterprisestopreparefinancialstatement,andonJanuary1,2021forotherenterprisesthatimplementaccountingstandardsforbusinessenterprises.TheCompanyhasimplementedtheNewLeasingStandardssinceJanuary1,2021.AccordingtotherelevantprovisionsoftheNewLeasingStandards,theCompanyheldthesecondmeetingoftheEighthBoardofDirectorsonMarch10,2021,approvedtheimplementationoftheNewLeasingStandardsfromJanuary1,2021,andadjustedtherelevantcontentsoftheaccountingpolicy.SeeNotesIII.30and31forthechangedaccountingpolicies.Forthecontractsexistingbeforethefirstimplementationdate,theCompanychoosesnottore-evaluatewhethertheyareleasesorincludeleasesonthefirstimplementationdate.Forcontractssignedorchangedafterthefirstimplementationdate,theCompanyevaluateswhetherthecontractisaleaseorincludesaleaseaccordingtothedefinitionofleaseintheNewLeasingStandards.
ThedefinitionofleaseintheNewLeasingStandardsdoesnothaveanysignificantimpactonthescopeofcontractsinwhichtheCompanymeetsthedefinitionoflease.AslesseeTheNewLeasingStandardsrequirethelesseetorecognizetheright-to-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleasesthataresimplified,andtorecognizedepreciationandinterestexpensesrespectively.TheNewLeasingStandardsallowthelesseetochooseoneofthefollowingmethodstoperformconnectionaccountingtreatmentonthelease:
AccordingtotheAccountingStandardsforBusinessEnterprisesNo.28-AccountingPolicies,Changesin
AccountingEstimatesandErrorCorrection,retrospectiveadjustmentmethodisadopted.Accordingtothecumulativeimpactofthefirstimplementationofthesestandards,theamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthefirstimplementationofthesestandardsareadjusted,andtheinformationofcomparableperiodisnotadjusted.AccordingtotheNewLeasingStandards,theCompanyhasretroactivelyadjustedthedifferencebetweenthefirstimplementationdateofNewLeasingStandardsandthecurrentleasestandardsintotheretainedearningsatthebeginningof2021.Atthesametime,theCompanyhasnotadjustedthedataofcomparativefinancialstatements.Forthefinancialleasebeforethefirstimplementationdate,theCompanymeasurestheright-to-useassetsandleaseliabilitiesrespectivelyaccordingtotheoriginalbookvalueofthefinancialleaseassetsandthefinancialleasepaymentspayable;Fortheoperatingleasebeforethefirstimplementationdate,theCompanymeasurestheleaseliabilitiesaccordingtothepresentvalueoftheremainingleasepaymentdiscountedattheincrementalborrowingrateonthefirstimplementationdate,andfortheleaseofhousesandbuildings,itmeasurestheright-to-useassetsaccordingtotheamountequaltotheleaseliabilities,andmakesnecessaryadjustmentsaccordingtotheprepaidrent.Onthefirstimplementationdate,theCompanyconductsimpairmenttestontheright-to-useassetsandconducts
correspondingaccountingtreatmentaccordingtoNotesIII.31.TheCompanyadoptssimplifiedtreatmentfortheoperatingleasewhoseleasedassetsarelow-valueassetsbeforethefirstimplementationdateortheoperatingleasethatwillbecompletedwithin12months,withoutrecognizingtheright-to-useassetsandleaseliabilities.TheCompanyadoptsthefollowingsimplifiedtreatmentfortheoperatingleasebeforethefirstimplementationdate:
Whenmeasuringleaseliabilities,thesamediscountratecanbeadoptedforleaseswithsimilarcharacteristics;The
measurementoftheright-to-useassetsmaynotincludetheinitialdirectcost;Ifthereisanoptiontoreneworterminatethelease,theCompanywilldeterminetheleasetermaccordingtothe
actualexerciseoftheoptionbeforethefirstimplementationdateandotherlatestinformation;Asasubstitutefortheimpairmenttestoftheright-to-useassets,theCompanyevaluateswhetherthecontract
includingleasesisanonerouscontractbeforethefirstimplementationdate,andadjuststheright-to-useassetsaccordingtothelossreserveamountincludedinthebalancesheetbeforethefirstimplementationdate;Fortheleasechangebeforethefirstimplementationdate,theCompanymakesaccountingtreatmentaccordingtothefinalarrangementoftheleasechange.TheimpactoftheimplementationoftheNewLeasingStandardsontheitemsofconsolidatedbalancesheetasofJanuary1,2021isasfollows:
| Items | Bookbalancebeforeadjustment（December31,2020） | Reclassification | Re-measurement | Bookbalanceafteradjustment（January1,2021） |
| Assets： | ||||
| Righttouseassets | -- | -- | 13,762,176.74 | 13,762,176.74 |
| Totalofassets | -- | -- | 13,762,176.74 | 13,762,176.74 |
| Liabilities | ||||
| Non-currentliabilitiesduewithin1year | -- | -- | 4,342,927.51 | 4,342,927.51 |
| Leaseliabilities | -- | -- | 9,419,249.23 | 9,419,249.23 |
| Totalofliabilities | -- | -- | 13,762,176.74 | 13,762,176.74 |
Fortheunpaidminimumleasepaymentofmajoroperatingleasesdisclosedinthe2020financialstatements,theCompanyadjustedtheunpaidminimumoperatingleasepaymentdisclosedundertheoriginalleasestandardstotheleaseliabilitiesrecognizedundertheNewLeasingStandardsaccordingtotheincrementalloaninterestrateofthelesseeonJanuary1,2021,asfollows:
| MinimumleasepaymentformajoroperatingleaseonDecember31,2020 | A | 14,740,264.72 |
| Less:Short-termleasewithsimplifiedtreatment | B | 42,452.83 |
| Less:Leaseoflow-valueassetswithsimplifiedtreatment | C | -- |
| Plus:Re-evaluatedadjustmentoftheminimumleasepaymentintheleaseterm | D | -- |
| Plus:Variableleasepaymentadjustmentdependingonindexorratio | E | -- |
| Subtotal | F=A-B-C+/-D+/-)E | 14,697,811.89 |
| Less：VAT | G | -- |
| Adjustedoperatingleasecommitment | H=F-G | 14,697,811.89 |
| PresentvalueofoperatingleasepaymentonJanuary1,2021 | I | 13,762,176.74 |
| Plus:FinancialleasepayableonDecember31,2020 | J | -- |
| LeaseliabilitiesonJanuary1st,2021 | K=I+J | 13,762,176.74 |
| Including:non-currentliabilitiesduewithinoneyear | 4,342,927.51 |
Thebookvalueoftheright-to-useassetsonJanuary1,2021isasfollows:
| Items | 2021.01.01 |
| Right-to-useassets | |
| Fortheright-to-useassetsrecognizedbytheoperatingleasebeforethefirstimplementationdate | 13,762,176.74 |
| Financingleasedassetsrecognizedundertheoriginalleasestandards | -- |
| Total： | 13,762,176.74 |
TheimpactoftheimplementationoftheNewLeasingStandardsontheitemsof2021financialstatementisasfollows:
| Itemsofconsolidatedbalancesheet | NumberofstatementsasofDecember31,2021 | Assumingthataccordingtotheoriginalleasestandards | Increase/decrease(-) |
| Assets： | |||
| Constructioninprocess | 71,482,031.08 | 71,510,678.35 | -28,647.27 |
| Righttouseassets | 9,221,189.37 | -- | 9,221,189.37 |
| Totalofassets | 80,703,220.45 | 71,510,678.35 | 9,192,542.10 |
| Liabilities | |||
| Non-currentliabilitiesduewithin1year | 5,175,393.52 | -- | 5,175,393.52 |
| Leaseliabilities | 4,243,855.71 | -- | 4,243,855.71 |
| Totalofliabilities | 9,419,249.23 | -- | 9,419,249.23 |
Itemsofconsolidatedincomestatement
| Itemsofconsolidatedincomestatement | Numberofstatementsin2021 | Assumingthataccordingtotheoriginalleasestandards | Increase/decrease(-) |
| Businesscosts | 1,908,519,413.28 | 1,908,686,016.10 | -166,602.82 |
| Administrationexpenses | 122,088,830.15 | 122,170,567.39 | -81,737.24 |
| Financialexpenses | -130,344.09 | -605,391.28 | 475,047.19 |
AslessorAccordingtotheNewLeasingStandards,theCompanydoesnotneedtoadjustitsleaseasalessoraccordingtotheconnectionregulations,butitneedstomakeaccountingtreatmentaccordingtotheNewLeasingStandardsfromthedatewhentheNewLeasingStandardsarefirstimplemented.
（2）Changeofmainaccountingestimations
□Applicable√Notapplicable
（3）AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeasesfromyear2021
√Applicable□Notapplicable
Whetherneedtoadjustthebalancesheetaccountatthebeginningoftheyear
□Yes√NoNoreasonforadjustingthebalancesheetaccountatthebeginningoftheyearNorelatedbusiness.
（4）RetrospectiveRestatementofPreviousComparativeDataduetotheFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeasesfromyear2021
□Applicable√Notapplicable
45.OtherNoneVI.TaxesoftheCompany
1.Maintaxescategoriesandtaxrate
| Taxes | Taxreferences | Applicabletaxrates |
| VAT | Thetaxableturnover | 13%,6%,5% |
| Cityconstructiontax | Turnovertaxtobepaidallowances | 7% |
| Businessincometax | Turnovertaxtobepaidallowances | 25%,20%,16.5%,15% |
| Educationsurcharge | Turnovertaxtobepaidallowances | 3% |
| Localeducationsurcharge | Turnovertaxtobepaidallowances | 2% |
Incasethereexistanytaxpayerpayingcorporateincometaxatdifferenttaxrates,disclosetheinformation
| Nameoftaxpayer | Incometaxrates |
2.Taxpreference.InaccordancewithrelevantprovisionsoftheNoticeofMinistryofFinance,GeneralAdministrationofCustomsandStateTaxationAdministrationRegardingTaxPreferencePoliciesforFurtherSupportingtheDevelopmentofNew-typeDisplayDeviceIndustry(CaiGuanShui(2021)No.19),TheCompanymanufacturedkeymaterialsandpartsfortheupstreamindustryofnew-typedisplaydevicesincludingcolorfullightfiltercoatingandpolarizersheetthatcomplywiththeplanningforindependentdevelopmentofdomesticindustriesmayenjoythepreferentialpoliciesofexemptionfromimporttarifffortheimportofrawmaterialsandconsumablesforthepurposeofselfuseandproductionthatcannotbeproduceddomesticallyfromJanuary1,2021andDecember31,2030.SAPOPhotoelectricCo.,Ltd.thesubsidiarycompanyofourcompany,hasbeenqualifiedasnationalhigh-techenterprisesince2019,High-techandenterprisecertificateNo.:GR201944205666,Thecertificateisvalidforthreeyears,Theenterpriseincometaxrateofthisyearis15%.
ShenzhenBeautyCenturyGarmentCo.,Ltd.,ShenzhenHuaqiangHotelGarmentCo.,Ltd.andShenzhenLisiIndustrialDevelopmentCo.,Ltd.,subsidiariesoftheCompany,areallsmallandlow-profitenterprisesasstipulatedintheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonImplementingInclusiveTaxConcessionPolicyforSmallandMicroEnterprises(CS[2019]No.13).ForthepartofthetaxableincomeofthisyearthatdoesnotexceedRMB1million,thetaxableincomeisreducedto12.5%,andtheenterpriseincometaxispaidatarateof20%;ForthetaxableincomeofthisyearthatexceedsRMB1millionbutdoesnotexceedRMB3million,thetaxableincomeisreducedto50%andtheenterpriseincometaxispaidata
rateof20%.
3.OtherNoneVII.Notesofconsolidatedfinancialstatement
1.MonetaryCapital
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Cashathand | 792.64 | 4,127.10 |
| Bankdeposit | 302,472,035.96 | 271,085,025.10 |
| Othermonetaryfunds | -- | 7,998,084.75 |
| Total | 302,472,828.60 | 279,087,236.95 |
| Including:Thetotalamountofdepositabroad | 6,009,898.07 | 7,829,822.78 |
Othernote
Attheendoftheperiod,thereisnomortgage,pledgeorfreezing,ormoneydepositedabroadwithrestrictedrepatriation.
2.Transactionalfinancialassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Financialassetsmeasuredattheirfairvaluesandwiththevariationincludedinthecurrentprofitsandlosses | 586,540,735.16 | 684,617,260.06 |
| Including： | ||
| Structuredeposit | 0.00 | 200,536,575.34 |
| Monetaryfund | 586,540,735.16 | 484,080,684.72 |
| Including | ||
| Total | 586,540,735.16 | 684,617,260.06 |
Othernote：
3.Derivativefinancialassets
单位：元
| Items | Year-endbalance | Year-beginningbalance |
Othernote：
4.Notesreceivable
(1)Notesreceivablelistedbycategory
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Bankacceptance | 77,296,787.26 | 0.00 |
| Commercialacceptance | 72,646,093.02 | 16,813,657.28 |
| Total | 149,942,880.28 | 16,813,657.28 |
InRMB
| Category | Amountinyear-end | BalanceYear-beginning | ||||||||
| BookBalance | Baddebtprovision | Bookvalue | BookBalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Ofwhich： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 138,110,166.17 | 100.00% | 365,055.74 | 0.24% | 149,942,880.28 | 16,898,148.02 | 100.00% | 84,490.74 | 0.50% | 16,813,657.28 |
| Ofwhich： | ||||||||||
| Commercialacceptance | 73,011,148.76 | 48.57% | 365,055.74 | 0.50% | 72,646,093.02 | 16,898,148.02 | 100.00% | 84,490.74 | 0.50% | 16,813,657.28 |
| Bankacceptance | 65,099,017.41 | 47.14% | 0.00 | 0.00% | 65,099,017.41 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Total | 150,307,936.02 | 100.00% | 365,055.74 | 0.24% | 149,942,880.28 | 16,898,148.02 | 100.00% | 84,490.74 | 0.50% | 16,813,657.28 |
Accrualofbaddebtprovisionbysingleitem:
InRMB
| Name | Amountinyear-end | |||
| BookBalance | Baddebtprovision | Proportion(%) | Reason | |
Accrualofbaddebtprovisionbyportfolio:Commercialacceptance
InRMB
| Name | Amountinyear-end | ||
| Bookbalance | Baddebtprovision | Proportion(%) | |
| Commercialacceptance | 73,011,148.76 | 365,055.74 | 0.50% |
Note：
Accrualofbaddebtprovisionbyportfolio:
InRMB
| Name | Amountinyear-end | ||
| Bookbalance | Baddebtprovision | Proportion(%) | |
Note：
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
√Applicable□NotapplicableNone
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| 84,490.74 | 280,565.00 | 365,055.74 | ||||
| Total | 84,490.74 | 280,565.00 | 365,055.74 | |||
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod
□Applicable√Notapplicable
（3）Notesreceivablepledgedbythecompanyattheendoftheperiod
InRMB
| Items | Amount |
（4）AccountsreceivablefinancingendorsedordiscountedbytheCompanyattheendoftheperiodandnotexpiredyetonthedateofbalancesheet
InRMB
| Items | Amountderecognizedattheendoftheperiod | Amountnotyetderecognizedattheendoftheperiod |
| Bankacceptance | 65,099,017.41 | |
| Total | 65,099,017.41 |
（5）AccountsreceivablefinancingtransferredtoaccountsreceivablebytheCompanyattheendoftheperiodduetofailureofthedrawertoperform
InRMB
| Items | Amount |
Othernote
Attheendoftheterm,theCompanyhasnonotestotransferthedrawertothereceivables.
（6）TheCompanyhadnoaccountsreceivablefinancingactuallywrittenoffintheperiod
InRMB
| Items | Amount |
5.Accountreceivable
(1)Classificationaccountreceivables.
InRMB
| Category | Amountinyear-end | Amountinyear-begin | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrualofbaddebtprovisionbysingleitem | 13,260,307.34 | 2.57% | 13,260,307.34 | 100.00% | 20,641,002.24 | 3.52% | 13,552,865.25 | 65.66% | 7,088,136.99 | |
| Including： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 502,848,549.97 | 97.43% | 22,849,841.40 | 4.54% | 479,998,708.57 | 565,279,517.47 | 96.48% | 25,057,436.56 | 4.43% | 540,222,080.91 |
| Including： | ||||||||||
| Total | 516,108,857.31 | 100.00% | 36,110,148.74 | 7.00% | 479,998,708.57 | 585,920,519.71 | 100.00% | 38,610,301.81 | 6.59% | 547,310,217.90 |
Accrualofbaddebtprovisionbysingleitem:
InRMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportion | Reason | |
| DongguanYaxingSemiconductorCo.,Ltd. | 2,797,016.81 | 2,797,016.81 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| DongguanFairLCDCo.,Ltd. | 1,697,122.75 | 1,697,122.75 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| GuangdongRuiliBaolaiTechnologyCo.,Ltd. | 1,298,965.36 | 1,298,965.36 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| HuangshanZhongxianweiElectricCo.,Ltd. | 902,031.00 | 902,031.00 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| ShenzhenGulidaMicroelectronicsCo.,Ltd. | 422,178.00 | 422,178.00 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| Other | 6,142,993.42 | 6,142,993.42 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| Total | 13,260,307.34 | 13,260,307.34 | -- | -- |
Accrualofbaddebtprovisionbysingleitem:
InRMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportion | Reason | |
Accrualofbaddebtprovisionbyportfolio:
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Within1year | 502,848,447.18 | 22,849,816.11 | 4.55% |
| 1-2years | 102.79 | 25.29 | 24.60% |
| Total | 502,848,549.97 | 22,849,841.40 | -- |
Note：
Accrualofbaddebtprovisionbyportfolio:
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
Note：
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√Notapplicable
Disclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 502,894,801.73 |
| 1-2years | 5,702.29 |
| 2-3years | 676,153.40 |
| Over3years | 12,532,199.89 |
| 3-4years | 103,011.28 |
| 4-5years | 389.73 |
| Over5years | 12,428,798.88 |
| Total | 516,108,857.31 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| 38,610,301.81 | -1,531,351.49 | 968,801.58 | 36,110,148.74 | |||
| Total | 38,610,301.81 | -1,531,351.49 | 968,801.58 | 36,110,148.74 | ||
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:
InRMB
| Name | Amount | Way |
(3)Theactualwrite-offaccountsreceivable
InRMB
| Items | Amount |
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:
InRMB
| Name | Nature | Amount | Reason | Verificationproceduresperformed | Whetherthemoneyisgeneratedbyrelatedpartytransactions |
Note：
None
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Balanceinyear-end | Proportion(%) | Baddebtprovision |
| TCLCSOT | 81,678,407.05 | 15.83% | 3,700,031.84 |
| CSOT | 64,415,196.86 | 12.48% | 2,918,008.42 |
| Huijin（Shenzhen）TechnologyCo.,Ltd. | 49,476,257.03 | 9.59% | 2,241,274.45 |
| LGDisplay（China）Co.,Ltd. | 36,387,596.37 | 7.05% | 1,648,358.12 |
| LGDisplay（Guangzhou)Co.,Ltd. | 35,275,590.17 | 6.83% | 1,597,984.24 |
| Total | 267,233,047.48 | 51.78% |
（5）AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone
6.Receivablefinancing
InRMB
| Items | Closingbalance | Openingbalance |
| Notereceivable | 21,474,101.07 | 102,051,314.08 |
| Total | 21,474,101.07 | 102,051,314.08 |
Changesincurrentperiodandfairvalueofreceivablesfinancing
√Applicable□NotapplicableNoneRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
√Applicable□NotapplicableNoneOthernote：
SomesubsidiariesoftheCompanydiscountandendorsesomebankacceptancebillsaccordingtotheneedsoftheirdailyfundmanagement,thereforethebankacceptancebillsofthesubsidiariesareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.ThereisnosinglebankacceptancebillwithimpairmentprovisionoftheCompany.OnDecember31,2021,
theCompanyconsideredthattherewasnosignificantcreditriskinthebankacceptancebillsheldbyit,andtherewouldbenosignificantlossduetobankdefault.
7.Prepayments
(1)Listbyaginganalysis:
InRMB
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion% | Amount | Proportion% | |
| Within1year | 15,157,623.27 | 98.38% | 14,934,263.03 | 88.35% |
| 1-2years | 248,996.26 | 1.62% | 557,043.06 | 3.30% |
| 2-3years | 540,748.42 | 3.20% | ||
| Over3years | 870,461.88 | 5.15% | ||
| Total | 15,406,619.53 | -- | 16,902,516.39 | -- |
Notesofthereasonsoftheprepaymentagesover1yearwithsignificantamountbutfailedsettledintimeOnDecember31,2021,therewasnolargeprepaymentwithanaccountingageofmorethanoneyearinthebalanceofprepayment.
（2）TheendingbalanceofPrepaymentsowedbytheimputationofthetopfivepartiesThetopfiveendingbalancesofprepaymentscollectedaccordingtoprepaidobjectstotaledRMB7,270,639.80,accountingfor47.20%ofthetotalclosingbalancesofprepayments.Othernote：None
8.Otherreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Otheraccountsreceivable | 140,185,750.40 | 5,265,002.71 |
| Total | 140,185,750.40 | 5,265,002.71 |
（1）Interestreceivable
1)Categoryofinterestreceivable
单位：元
| Items | Closingbalance | Openingbalance |
| Fixeddeposit | 0.00 | 0.00 |
| Entrustedloan | 0.00 | 0.00 |
| Bondinvestment | 0.00 | 0.00 |
2)Significantoverdueinterest
InRMB
| Items | Balanceinyear-end | Aging | Reasonsfornon-recovery | Whetherwithimpairmentandthejudgmentbasis |
Othernote：
3）Thebaddebtprovision
□Applicable√Notapplicable
（2）Dividendreceivable
1)Dividendreceivable
InRMB
| Items | Balanceinyear-end | BalanceYear-beginning |
2）Significantdividendreceivableagedover1year
InRMB
| Items | Balanceinyear-end | Aging | Reasonsfornon-recovery | Whetherwithimpairmentandthejudgmentbasis |
3）Thebaddebtprovision
□Applicable√NotapplicableOthernote：
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassified
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| ReserveFundsandEmployeeLoans | 293,128.97 | 379,477.97 |
| Depositandsecuritydeposit | 144,954,822.31 | 2,585,585.87 |
| Exporttaxrebate | 1,698,919.82 | 1,658,146.29 |
| Unitexchanges | 16,402,902.33 | 16,369,395.10 |
| Other | 1,834,489.23 | 2,069,761.14 |
| Total | 165,184,262.66 | 23,062,366.37 |
2）Bad-debtprovision
InRMB
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2021 | 573,597.01 | 17,223,766.65 | 17,797,363.66 | |
| BalanceasatJanuary1,2021incurrent | —— | —— | —— | —— |
| Provisioninthecurrentperiod | 7,221,660.06 | 7,221,660.06 | ||
| BalanceasatDecember31,2021 | 7,795,257.07 | 17,203,255.19 | 24,998,512.26 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
√Applicable□Notapplicable
Disclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 146,289,172.36 |
| 1-2years | 931,075.99 |
| 2-3years | 411,482.57 |
| Over3years | 17,552,531.74 |
| 3-4years | 546,382.79 |
| 4-5years | 537,717.29 |
| Over5years | 16,468,431.66 |
| Total | 165,184,262.66 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedor | Write-off | Other | |||
| collectedamount | |||||
| 17,797,363.66 | 7,221,660.06 | 20,511.46 | 24,998,512.26 | ||
| Total | 17,797,363.66 | 7,221,660.06 | 20,511.46 | 24,998,512.26 |
NoteWherethecurrentbaddebtsbackorrecoversignificantamounts:
InRMB
| Name | Amount | Mode |
4)Otheraccountreceivablesactuallycancelafterwrite-off
InRMB
| Items | Amount |
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:
InRMB
| Name | Nature | Amount | Reason | Verificationproceduresperformed | Whetherthemoneyisgeneratedbyrelatedpartytransactions |
Othernote
5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Nature | Year-endbalance | Aging | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Internalcurrentaccount | 143,101,258.40 | 1-3years | 86.63% | 7,155,062.92 |
| JiangxiXuanliThreadCo.,Ltd. | Unitaccount | 11,389,044.60 | Over5years | 6.89% | 11,389,044.60 |
| AnhuiHuapengTextileCompany | Unitaccount | 1,800,000.00 | Over5years | 1.09% | 1,800,000.00 |
| ShenzhenDailisiUnderwearCo.,Ltd | Unitaccount | 1,100,000.00 | Within1year | 0.67% | 55,000.00 |
| ShenzhenXieli | Unitaccount | 1,018,295.37 | 2-5years | 0.62% | 1,018,295.37 |
| AutomobileRepairPlant | |||||
| Total | -- | 158,408,598.37 | -- | 95.90% | 21,417,402.89 |
6)Accountsreceivableinvolvedwithgovernmentsubsidies
InRMB
| Name | Nameofthegovernmentsubsidyproject | Year-endbalance | Aging | Time,amountandbasisoftheexpectedcollection |
Thecompanyhasnogovernmentsubsidiesreceivable.
7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
8)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivable
NoneOthernote：
9.InventoriesWhetherthecompanyneedtocomplywiththedisclosurerequirementsoftherealestateindustryNo
（1）CategoryofInventory
InRMB
| Items | Closingbookbalance | Openingbookbalance | ||||
| Bookbalance | Provisionforinventoryimpairment | Bookvalue | Bookbalance | Provisionforinventoryimpairment | Bookvalue | |
| Rawmaterials | 349,978,870.87 | 26,335,509.94 | 323,643,360.93 | 258,191,196.82 | 13,788,646.60 | 244,402,550.22 |
| Processingproducts | 10,992,072.59 | 10,992,072.59 | 2,715,845.96 | 2,715,845.96 | ||
| Goodinstock | 118,034,342.61 | 36,750,396.02 | 81,283,946.59 | 132,780,479.72 | 43,914,789.90 | 88,865,689.82 |
| Goodsintransit | 7,910,629.62 | 30,573.89 | 7,880,055.73 | 524,698.46 | 524,698.46 | |
| Semi-finished | 270,743,032.26 | 34,298,745.28 | 236,444,286.98 | 131,069,647.77 | 14,613,640.62 | 116,456,007.15 |
| Commissionedmaterials | 7,838,404.74 | 620,680.53 | 7,217,724.21 | 31,040,280.45 | 3,157,490.62 | 27,882,789.83 |
| Total | 765,497,352.69 | 98,035,905.66 | 667,461,447.03 | 556,322,149.18 | 75,474,567.74 | 480,847,581.44 |
（2）Inventoryfallingpricereservesandreservesforimpairmentofcontractperformancecosts
InRMB
| Items | Openingbalance | Increasedincurrentperiod | Decreasedincurrentperiod | Closingbalance | ||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Rawmaterials | 13,788,646.60 | 19,526,328.72 | 6,979,465.38 | 26,335,509.94 | ||
| Goodinstock | 43,914,789.90 | 25,646,269.75 | 32,810,663.63 | 36,750,396.02 | ||
| Semi-finished | 14,613,640.62 | 37,652,098.22 | 17,966,993.56 | 34,298,745.28 | ||
| Goodsintransit | 30,573.89 | 30,573.89 | ||||
| Commissionedmaterials | 3,157,490.62 | 620,680.53 | 3,157,490.62 | 620,680.53 | ||
| Total | 75,474,567.74 | 83,475,951.11 | 60,914,613.19 | 98,035,905.66 | ||
(3)DescriptionofTheclosingbalanceofinventoriescontaintheamountofborrowingcostscapitalized
（4）Descriptionofamortizationamountofcontractperformancecostinthecurrentperiod
10.ContractassetsRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofcontractassetsisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableProvisionforimpairmentofcontractassetsinthecurrentperiodOthernote
11.Assetsdividedasheld-to-soldNotapplicableOthernote：
12.Non-currentassetsduewithin1yearNotapplicableOthernote
13.Othercurrentassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| AfterthedeductionofinputVAT | 860,153.70 | 77,482,083.47 |
| Advancepaymentofincometax | 57,448.91 | |
| Returnsreceivablecosts | 28,585,749.81 | |
| Total | 29,503,352.42 | 77,482,083.47 |
Othernote：
14.Creditor'srightinvestment
InRMB
| Items | Year-endbalance | Year-beginningbalance | ||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |
NotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableOthernote：
15.Othercreditor'srightsinvestmentNotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableOthernote
16.Long-termaccountsreceivable
(1)Listoflong-termaccountsreceivableNotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableOthernote
(2)Long-termaccountsreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
(3)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementoflong-termaccountsreceivableOthernote
17.Long-termequityinvestment
InRMB
| Investees | Openingbalance | Increase/decrease | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Decreaseininvestment | ProfitsandlossesoninvestmentsRecognizedundertheequitymethod | Othercomprehensiveincome | Changesinotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,797,023.14 | 10,797,023.14 | |||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 127,906,165.17 | 308,060.37 | 128,214,225.54 | ||||||||
| Subtotal | 138,703,188.31 | 10,797,023.14 | 308,060.37 | 128,214,225.54 | |||||||
| 2.AffiliatedCompany | |||||||||||
| ShenzhenChanglianfaPrinting&dyeingCompany | 2,706,262.38 | 265,940.59 | 2,972,202.97 | ||||||||
| HongkongYehuiInternationalCo.,Ltd. | 6,519,686.54 | -540,016.30 | -199,063.73 | 3,944,709.25 | 1,835,897.26 | ||||
| Subtotal | 9,225,948.92 | -274,075.71 | -199,063.73 | 3,944,709.25 | 4,808,100.23 | ||||
| Total | 147,929,137.23 | 10,797,023.14 | 33,984.66 | -199,063.73 | 3,944,709.25 | 133,022,325.77 |
Othernote
18.Otherequityinstrumentsinvestment
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| FuaoautopartsCo.,Ltd.（000030） | 10,129,390.84 | |
| ShenzhenDailishiUnderwearCo.,Ltd. | 23,637,000.00 | 12,315,939.61 |
| UnionDevelopmentGroupCo.,Ltd. | 144,109,485.84 | 152,469,200.00 |
| JintianIndustry（Group）Co.,Ltd. | ||
| ShenzhenXinfangKnittingCo.,Ltd. | 2,227,903.00 | 2,227,903.00 |
| ShenzhenSouthTextileCo.,Ltd. | 16,059,440.88 | 13,464,994.09 |
| Total | 186,033,829.72 | 190,607,427.54 |
Itemizeddisclosureofthecurrentnon-tradingequityinstrumentinvestment
InRMB
| Name | Recognizeddividendincome | Accumulatingincome | Accumulatinglosses | Amountofothercomprehensiveincometransferredtoretainedearnings | Reasonsforbeingmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome | Reasonsforothercomprehensiveincometransferredtoretainedearning |
| Fuaoautoparts | 414,007.80 | 1,158,325.79 | 1,158,325.79 | Disposal |
| Co.,Ltd.（000030） | |||
| ShenzhenDailishiUnderwearCo.,Ltd. | 1,037,735.85 | 21,077,143.74 | |
| UnionDevelopmentGroupCo.,Ltd. | 208,000.00 | 141,509,485.84 | |
| ShenzhenXinfangKnittingCo.,Ltd. | 1,703,903.00 | ||
| JintianIndustry（Group）Co.,Ltd. | 14,831,681.50 | ||
| ShenzhenSouthTextileCo.,Ltd. | 892,152.37 | 14,559,440.88 |
Othernote：
Note:TheamountoftheCompany'sinvestmentinJintianIndustrial(Group)Co.,Ltd.isallimpaired.AstheaboveitemsareinvestmentsthattheCompanyplanstoholdforalongtimeforstrategicpurposes,theCompanydesignatesthemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.
19.Othernon-currentfinancialassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 30,650,943.40 | 30,650,943.40 |
| Total | 30,650,943.40 | 30,650,943.40 |
Othernote：
20.Investmentrealestate
(1)Investmentrealestateadoptedthecostmeasurementmode
√Applicable□Notapplicable
InRMB
| Items | House,Building | Landuseright | Constructioninprocess | Total |
| I.Originalprice | ||||
| 1.Balanceatperiod-beginning | 261,742,940.53 | 261,742,940.53 | ||
| 2.Increaseinthecurrentperiod | 3,028,785.00 | 3,028,785.00 | ||
| (1)Purchase | 3,028,785.00 | 3,028,785.00 | ||
| （2）Inventory\Fixedassets\Transferredfromconstructioninprogress | ||||
| (3)IncreasedofEnterpriseCombination |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | 1,127,850.60 | 1,127,850.60 | |
| （1）Dispose | 1,127,850.60 | 1,127,850.60 | |
| （2）Otherout |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 263,643,874.93 | 263,643,874.93 | |
| II.Accumulatedamortization | |||
| 1.Openingbalance | 151,170,468.61 | 151,170,468.61 | |
| 2.Increasedamountoftheperiod | 6,986,473.75 | 6,986,473.75 | |
| (1)Withdrawal | 6,986,473.75 | 6,986,473.75 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | 730,847.19 | 730,847.19 | |
| （1）Dispose | 730,847.19 | 730,847.19 | |
| （2）Otherout |
4.Balanceat
| 4.Balanceat | 157,426,095.17 | 157,426,095.17 |
| period-end |
| III.Impairmentprovision |
| 1.Balanceatperiod-beginning |
| 2.Increasedamountoftheperiod |
| (1)Withdrawal |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | |||
| IV.Bookvalue | |||
| 1.Bookvalueatperiod-end | 106,217,779.76 | 106,217,779.76 | |
| 2.Bookvalueatperiod-beginning | 110,572,471.92 | 110,572,471.92 |
(2)Investmentpropertyadoptedfairvaluemeasurementmode
□Applicable√Notapplicable
(3)Investmentrealestatewithoutcertificateofownership
InRMB
| Items | Bookbalance | Reason |
| HousesandBuilding | 10,658,816.07 | Unabletoapplyforwarrantsduetohistoricalreasons |
Othernote
21.Fixedassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Fixedassets | 2,424,741,252.86 | 790,183,905.38 |
| Total | 2,424,741,252.86 | 790,183,905.38 |
(1)Listoffixedassets
InRMB
| Items | Houses&buildings | Machineryequipment | Transportations | Otherequipment | Total |
| I.Originalprice | |||||
| 1.Openingbalance | 545,896,931.25 | 1,017,693,432.96 | 11,379,729.08 | 42,420,673.14 | 1,617,390,766.43 |
| 2.Increasedamountoftheperiod | 258,765,257.28 | 1,535,123,033.22 | 3,899,262.59 | 12,891,530.11 | 1,810,679,083.20 |
| (1)Purchase | 1,569,521.47 | 29,933,637.96 | 1,151,689.53 | 2,588,556.40 | 35,243,405.36 |
| (2)Transferredfromconstructioninprogress | 257,195,735.81 | 1,505,189,395.26 | 2,747,573.06 | 10,302,973.71 | 1,775,435,677.84 |
| (3)IncreasedofEnterpriseCombination |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | 2,149,210.94 | 4,933,091.35 | 7,082,302.29 | ||
| （1）Disposal | 2,149,210.94 | 4,933,091.35 | 7,082,302.29 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 804,662,188.53 | 2,550,667,255.24 | 15,278,991.67 | 50,379,111.90 | 3,420,987,547.34 |
| II.Accumulateddepreciation | |||||
| 1.Openingbalance | 159,918,391.99 | 630,517,504.87 | 3,217,030.86 | 27,084,284.60 | 820,737,212.32 |
| 2.Increasedamountoftheperiod | 23,052,994.89 | 147,538,129.77 | 1,144,752.53 | 3,394,343.06 | 175,130,220.25 |
| (1)Withdrawal | 23,052,994.89 | 147,538,129.77 | 1,144,752.53 | 3,394,343.06 | 175,130,220.25 |
3.Decreaseinthereporting
| 3.Decreaseinthereporting | 1,608,147.10 | 4,407,313.58 | 6,015,460.68 |
| period | |||||
| （1）Disposal | 1,608,147.10 | 4,407,313.58 | 6,015,460.68 |
4.Closingbalance
| 4.Closingbalance | 182,971,386.88 | 776,447,487.54 | 4,361,783.39 | 26,071,314.08 | 989,851,971.89 |
| III.Impairmentprovision | |||||
| 1.Openingbalance | 6,373,080.81 | 96,567.92 | 6,469,648.73 | ||
| 2.Increaseinthereportingperiod | 32,769.22 | 32,769.22 | |||
| （1）Withdrawal | 32,769.22 | 32,769.22 |
3.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | 11,527.44 | 96,567.92 | 108,095.36 | ||
| （1）Disposal | 11,527.44 | 96,567.92 | 108,095.36 | ||
| （2）Otherdecrease | |||||
| 4.Closingbalance | 6,361,553.37 | 32,769.22 | 6,394,322.59 | ||
| IV.Bookvalue | |||||
| 1.Bookvalueoftheperiod-end | 621,690,801.65 | 1,767,858,214.33 | 10,917,208.28 | 24,275,028.60 | 2,424,741,252.86 |
| 2.Bookvalueoftheperiod-begin | 385,978,539.26 | 380,802,847.28 | 8,162,698.22 | 15,239,820.62 | 790,183,905.38 |
(2)Fixedassetstemporarilyidled
InRMB
| Items | Originalprice | Accumulateddepreciation | Impairmentprovision | Bookvalue | Remark |
⑶Fixedassetsleasedoutthroughoperatingleases
InRMB
| Items | Bookvalue |
(4)Fixedassetswithoutcertificateoftitlecompleted
InRMB
| Items | BookValue | Reason |
| HousesandBuilding | 275,225,966.28 | Unabletoapplyforwarrantsduetohistoricalreasons |
Othernote
（5）Liquidationoffixedassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
Othernote
22.Constructioninprogress
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Constructioninprogress | 71,482,031.08 | 1,301,750,141.12 |
| Total | 71,482,031.08 | 1,301,750,141.12 |
(1)Listofconstructioninprogress
InRMB
| Items | Year-endbalance | Year-beginningbalance | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
| IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7) | 1,301,693,689.12 | 1,301,693,689.12 | ||||
| Other | 56,452.00 | 56,452.00 | ||||
| Installationofmachinesandequipment | 71,482,031.08 | 71,482,031.08 | ||||
| Total | 71,482,031.08 | 71,482,031.08 | 1,301,750,141.12 | 1,301,750,141.12 | ||
（2）Changesofsignificantconstructioninprogress
InRMB
| Name | Budget | Amountatyearbeginning | Increaseatthisperiod | Transferredtofixedassets | Otherdecrease | Balanceinyear-end | Proportion(%) | Progressofwork | Capitalisationofinterestaccumulatedbalance | Including：Currentamountofcapitalizationofinterest | Capitalisationofinterestratio（%) | Sourceoffunds |
| IndustrializationprojectofPolaroidforsuperlargesizeTV(Line7) | 2,106,698,400.00 | 1,301,693,689.12 | 468,844,861.20 | 1,770,538,550.32 | 99.26% | Investmentinfixedassetshasbeentransferred | 13,747,732.55 | 9,807,167.26 | 4.41% | Other | ||
| Total | 2,106,698,400.00 | 1,301,693,689.12 | 468,844,861.20 | 1,770,538,550.32 | -- | -- | 13,747,732.55 | 9,807,167.26 | 4.41% | -- |
（3）ImpairmentprovisionofconstructionprojectsNotapplicableOthernote
（4）Engineeringmaterial
InRMB
| Items | Year-endbalance | Year-beginningbalance | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
Othernote：
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredatcostmethods
□Applicable√Notapplicable
(2)Productivebiologicalassetsmeasuredatfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Righttouseassets
InRMB
| Items | Total | |
| 1.Balanceatyearbeginning | 13,762,176.74 | 13,762,176.74 |
| 4.Year-endbalance | 13,762,176.74 | 13,762,176.74 |
| 2.Increaseatthisperiod | 4,540,987.37 | 4,540,987.37 |
| 4.Year-endbalance | 4,540,987.37 | 4,540,987.37 |
| 1.Bookvalue | 9,221,189.37 | 9,221,189.37 |
Othernote：
None
26.Intangibleassets
(1)Information
InRMB
| Items | Landuseright | Patentright | Non-proprietarytechnology | Software | Total |
| I.Originalprice | |||||
| 1.Balanceatperiod-beginning | 48,258,239.00 | 11,825,200.00 | 4,079,953.70 | 64,163,392.70 | |
| 2.Increaseinthecurrentperiod | 17,616,287.32 | 17,616,287.32 | |||
| (1)Purchase | 17,616,287.32 | 17,616,287.32 | |||
| （2）InternalR&D | |||||
| （3）IncreasedofEnterprise |
Combination
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 48,258,239.00 | 11,825,200.00 | 21,696,241.02 | 81,779,680.02 | |
| II.Accumulatedamortization | |||||
| 1.Balanceatperiod-beginning | 13,487,191.27 | 11,825,200.00 | 2,802,022.52 | 28,114,413.79 | |
| 2.Increaseinthecurrentperiod | 895,391.76 | 4,134,714.47 | 5,030,106.23 | ||
| (1)Withdrawal | 895,391.76 | 4,134,714.47 | 5,030,106.23 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 14,382,583.03 | 11,825,200.00 | 6,936,736.99 | 33,144,520.02 | |
| III.Impairmentprovision | |||||
| 1.Balanceatperiod-beginning | |||||
| 2.Increaseinthecurrentperiod | |||||
| (1)Withdrawal |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
| 4.Balanceatperiod-end | |||||
| 4.Bookvalue | |||||
| 1.Bookvalueatperiod-end | 33,875,655.97 | 0.00 | 14,759,504.03 | 48,635,160.00 | |
| 2.Bookvalueatperiod-beginning | 34,771,047.73 | 0.00 | 1,277,931.18 | 36,048,978.91 |
TheproportiontheintangibleassetsformedfromtheinternalR&DthroughtheCompanyamountthebalanceoftheintangibleassetsattheperiod-end.
(2)Detailsoffixedassetsfailedtoaccomplishcertificationoflanduseright
InRMB
| Items | Bookvalue | Reason |
Othernote：
Forintangibleassetsmortgagedbybankloans,pleaserefertoVIINotestoconsolidatedfinancialstatements"81.Assetswithrestrictedownershiporuserights".
27..Developmentexpenses
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Decreaseinthisperiod | Balanceinyear-end | ||||
| Internaldevelopmentexpenditure | Other | Recognizedasintangibleassets | Transfertocurrentprofitandloss | |||||
Total
Othernote
28.Goodwill
(1)Originalbookvalueofgoodwill
InRMB
TotalNameoftheinvesteesortheeventsformedgoodwill
| Nameoftheinvesteesortheeventsformedgoodwill | Openingbalance | Increase | Decrease | Closingbalance | ||
| Themergerofenterprises | disposition | |||||
| SAPO | 9,614,758.55 | 9,614,758.55 | ||||
| Photoelectric | |||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,167,341.21 | 2,167,341.21 | |
| Total | 11,782,099.76 | 11,782,099.76 |
（2）Impairmentofgoodwill
InRMB
| Investee | Balanceinyear-begin | Increasedatthisperiod | .Decreasedatthisperiod | Closingbalance | ||
| Provision | disposition | |||||
| SAPOPhotoelectric | 9,614,758.55 | 9,614,758.55 | ||||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Total | 11,782,099.76 | 11,782,099.76 | ||||
Informationaboutanassetgrouporassetgroupportfolio
Explainthegoodwillimpairmenttestprocess,keyparameters(suchasforecastperiodgrowthrateatexpectedfuturecashflow,stableperiodgrowthrate,profitmargin,discountrate,forecastperiod,etc.)andtheconfirmationmethodofgoodwillimpairmentlossImpactofthegoodwillimpairmenttestOthernote
29.Longtermamortizeexpenses
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Amortizedexpenses | Otherloss | Balanceinyear-end |
| Decorationfee | 111,541.85 | 409,932.91 | 188,830.66 | 332,644.10 | |
| Renovationfee | 1,264,954.74 | 3,224,534.02 | 714,221.68 | 3,775,267.08 | |
| Other | 1,500,064.94 | 47,430.80 | 268,110.98 | 1,279,384.76 |
| Total | 2,876,561.53 | 3,681,897.73 | 1,171,163.32 | 5,387,295.94 |
OthernoteNone
30.Deferredincometaxassets/deferredincometaxliabilities
（1）Detailsoftheun-recognizeddeferredincometaxassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Assetsdepreciationreserves | 5,766,782.71 | 1,440,192.90 | 18,865,669.84 | 4,709,761.70 |
| Unattainedinternalsalesprofits | 2,324,192.50 | 348,628.88 | 2,413,307.05 | 361,996.06 |
| Restrictedstockrepurchaseinterest | 686,670.00 | 171,667.50 | ||
| Salarypayabletostaff | 7,679,100.00 | 1,919,775.00 | ||
| Total | 15,770,075.21 | 3,708,596.78 | 21,965,646.89 | 5,243,425.26 |
(2)Detailsoftheun-recognizeddeferredincometaxliabilities
InRMB
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofinvestmentsinotherequityinstruments | 178,849,973.46 | 44,712,493.37 | 174,482,972.97 | 43,620,743.24 |
| Thedifferencebetweentheinitialrecognitioncostandtaxbaseoflong-termequityinvestmentofGuanhuaCompany | 62,083,693.36 | 15,520,923.34 | 62,083,693.36 | 15,520,923.34 |
| Differenceinrentreceivable | 5,636,976.78 | 1,409,244.20 | ||
| Total | 246,570,643.60 | 61,642,660.91 | 236,566,666.33 | 59,141,666.58 |
(3)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set
InRMB
| Items | Trade-offbetweenthedeferredincometaxassetsandliabilities | Endbalanceofdeferredincometaxassetsorliabilitiesafteroff-set | Trade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-begin | Openingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set |
| Deferredincometaxassets | 3,708,596.78 | 5,243,425.26 | ||
| Deferredincometaxliabilities | 61,642,660.91 | 59,141,666.58 |
(4)Detailsofincometaxassetsnotrecognized
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Deductibletemporarydifference | 151,027,647.77 | 122,887,462.20 |
| Deductibleloss | 736,209,989.47 | 682,013,840.25 |
| Total | 887,237,637.24 | 804,901,302.45 |
(5)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears
InRMB
| Year | Balanceinyear-end | Balanceinyear-begin | Remark |
| 2023 | 129,226,944.33 | 129,226,944.33 | |
| 2024 | 148,095,898.11 | 148,095,898.11 | |
| 2025 | 83,287,153.64 | 83,287,153.64 | |
| 2026 | 120,820,767.06 | 120,820,767.06 | |
| 2028 | 22,594,586.97 | 22,594,586.97 | |
| 2029 | 100,351,965.47 | 100,351,965.47 | |
| 2030 | 77,636,524.67 | 77,636,524.67 | |
| 2031 | 54,196,149.22 | ||
| Total | 736,209,989.47 | 682,013,840.25 | -- |
Othernote：
None
31.Othernon-currentassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
| Advancepaymentforequipmentfund | 28,769,782.86 | 0.00 | 28,769,782.86 | 47,483,219.83 | 0.00 | 47,483,219.83 |
| Certificateofdepositformorethan1year | 30,030,410.96 | 0.00 | 30,030,410.96 | 70,064,383.56 | 0.00 | 70,064,383.56 |
| ShenzhenXieliAutomobileCo.,ltd. | 25,760,086.27 | 0.00 | 25,760,086.27 | 25,760,086.27 | 0.00 | 25,760,086.27 |
| Total | 84,560,280.09 | 0.00 | 84,560,280.09 | 143,307,689.66 | 0.00 | 143,307,689.66 |
Othernote：
None
32.Short-termborrowings
（1）Categoriesofshort-termloans
InRMB
| Items | Balanceinyear-end | BalanceYear-beginning |
Note：
(2)SituationofOverdueOutstandingShort-TermBorrowingNotapplicableOthernote：
33.Transactionalfinancialliabilities
InRMB
| Items | Balanceinyear-end | Balanceyear-beginning |
| Including： | ||
| Including： |
Othernote：
34.Derivativefinancialliability
InRMB
| Items | Balanceinyear-end | Balanceyear-beginning |
Othernote：
35.Notespayable
InRMB
| Type | Balanceinyear-end | Balanceinyear-begin |
| BankacceptanceBill | 16,682,324.12 | 0.00 |
| Total | 16,682,324.12 |
Thetotalnotepayablenotdueattheendoftheperiodis0.00yuan.
36.Accountspayable
(1)Listofaccountspayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Within1year | 280,210,281.65 | 325,354,275.46 |
| 1-2years | 1,122,451.76 | 1,912,000.86 |
| 2-3years | 496,309.68 | 96,543.25 |
| 3-4years | 44,629.53 | 1,093,369.87 |
| 4-5years | 983,598.33 | 37,402.40 |
| Over5years | 786,571.28 | 975,010.06 |
| Total | 283,643,842.23 | 329,468,601.90 |
(2)Significantadvancefromcustomersagingoveroneyear
InRMB
| Items | Balanceinyear-end | Reason |
Othernote：
None
37.Advanceaccount
(1)ListofAdvanceaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Within1year | 968,394.67 | 666,457.75 |
| 1-2years | 197,892.32 | 2,236,912.00 |
| 2-3years |
| Over3years | 639,024.58 | 639,024.58 |
| Total | 1,805,311.57 | 3,542,394.33 |
(2)Significantadvancefromcustomersagingoveroneyear
InRMB
| Items | Balanceinyear-end | Reason |
38.Contractliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Good | 68,955.21 | 279,631.27 |
| Less：Contractualliabilitieschargedtoothernon-currentliabilities | ||
| Total | 68,955.21 | 279,631.27 |
Amountandreasonsforthesignificantchangeinthebookvalueduringthereportingperiod
InRMB
| Items | Amount | Reason |
39.PayableEmployeewage
(1)ListofPayrollpayable
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Payableinthisperiod | Balanceinyear-end |
| I.Short-termcompensation | 55,642,549.53 | 235,951,646.92 | 231,874,336.21 | 59,719,860.24 |
| II.Post-employmentbenefits-definedcontributionplans | 15,705,799.59 | 15,705,799.59 | ||
| III.Dismissalbenefits | 2,636,463.20 | 2,636,463.20 | ||
| Total | 55,642,549.53 | 254,293,909.71 | 250,216,599.00 | 59,719,860.24 |
（2）Short-termremuneration
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Decreaseinthisperiod | Balanceinyear-end |
| 1.Wages,bonuses,allowancesand | 53,293,551.94 | 211,994,691.05 | 208,173,934.97 | 57,114,308.03 |
| subsidies | ||||
| 2.Employeewelfare | 41,093.20 | 8,393,472.90 | 8,434,566.10 | |
| 3.Socialinsurancepremiums | 2,723,153.85 | 2,723,153.85 | ||
| Including：Medicalinsurance | 2,254,940.97 | 2,254,940.97 | ||
| Workinjuryinsurance | 175,636.12 | 175,636.12 | ||
| Maternityinsurance | 292,576.76 | 292,576.76 | ||
| 4.Publicreservesforhousing | 7,339,217.34 | 7,339,217.34 | ||
| 5.Unionfundsandstaffeducationfee | 2,307,904.39 | 5,501,111.78 | 5,203,463.95 | 2,605,552.21 |
| Total | 55,642,549.53 | 235,951,646.92 | 231,874,336.21 | 59,719,860.24 |
（3）Definedcontributionplanslisted
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Decreaseinthisperiod | Balanceinyear-end |
| 1.Basicold-ageinsurancepremiums | 13,082,445.90 | 13,082,445.90 | ||
| 2.Unemploymentinsurance | 278,249.09 | 278,249.09 | ||
| 3.Annuitypayment | 2,345,104.60 | 2,345,104.60 | ||
| Total | 15,705,799.59 | 15,705,799.59 |
Othernote：
None
40.TaxPayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| VAT | 6,334,093.50 | 286,928.75 |
| EnterpriseIncometax | 1,804,277.95 | 11,219,726.43 |
| IndividualIncometax | 866,274.38 | 469,169.71 |
| CityConstructiontax | 43,259.90 | 48,751.30 |
| Housepropertytax | 102,146.02 | 102,146.02 |
| Educationsurcharge | 31,608.85 | 33,386.49 |
| Stamptax | 18,966.49 | 36,370.02 |
| Landusetax | 0.00 | 2,043.30 |
| Total | 9,200,627.09 | 12,198,522.02 |
Othernote：
None
41.Otherpayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Otherpayable | 201,317,421.35 | 156,118,440.42 |
| Total | 201,317,421.35 | 156,118,440.42 |
（1）Interestpayable
Notapplicable
Othernote：
（2）Dividendspayable
InRMB
| Items | Balanceinyear-end | BalanceYear-beginning |
(3)Otheraccountspayable
(1)Otheraccountspayablelistedbynatureoftheaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| EngineeringEquipmentfund | 91,213,156.89 | 32,713,413.76 |
| Unitaccount | 51,681,042.57 | 48,394,939.72 |
| Deposit | 43,277,481.38 | 36,130,306.12 |
| Restrictivestockrepurchaseobligation | 0.00 | 7,844,373.00 |
| Other | 15,145,740.51 | 31,035,407.82 |
| Total | 201,317,421.35 | 156,118,440.42 |
(2)Othersignificantaccountspayablewithagingoveroneyear
InRMB
| Items | Balanceinyear-end | Reason |
OthernoteNone
42.Liabilitiesclassifiedasholdingforsale
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
Othernote：
43.Non-currentliabilitiesduewithin1year
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Leaseliabilitiesduewithinoneyear | 5,175,393.52 | 0.00 |
| Total | 5,175,393.52 |
Othernote：
None
44.Othercurrentliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Didnotterminatetheconfirmationbillendorsement,discount | 27,523,903.58 | 0.00 |
| Total | 27,523,903.58 |
Othernote：
None
45.Long-termborrowing
(1)ListofLong-termborrowing
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Mortgage-guaranteedloan | 683,016,243.25 | 343,100,174.35 |
| Less：Long-termborrowingsduewithin | 0.00 | 0.00 |
| 1year | ||
| Total | 683,016,243.25 | 343,100,174.35 |
Descriptionofthelong-termloanclassificationOthernote,
46.Bondpayable
（1）Bondpayable
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
（2）Changesofbondspayable(Notincludingtheotherfinancialinstrumentofpreferredstockandperpetualcapitalsecuritiesthatclassifyasfinancialliability
InRMB
| Nameofthebond | Bookvalue | Issuedate | Period | Issueamount | Openingbalance | Thecurrentissue | Withdrawinterestatpar | Overflowdiscountamount | Payincurrentperiod | Closingbalance |
Total
| Total | -- | -- | -- |
(3)Notetoconditionsandtimeofsharetransferofconvertiblebonds
（4）OtherfinancialinstrumentsthatareclassifiedasfinancialliabilitiesBasicsituationofotherfinancialinstrumentsoutstandingattheperiod-endsuchpreferredsharesandperpetualbondsChangesinfinancialinstrumentsoutstandingattheperiod-endsuchpreferredsharesandperpetualliabilitiesOthernote
47.Leaseliabilities
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
| leaseliabilities | 9,419,249.23 | |
| Less：Leaseliabilitiesduewithin1year | -5,175,393.52 | |
| Total | 4,243,855.71 |
Othernote
Theaccruedinterestexpenseofleaseliabilitiesin2021isRMB475,000,whichisincludedinthefinancialexpense-interestexpense.
48.Long-termpayable
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
（1）Statementoflong-termpayrollpayable
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
Othernote：
（2）Specialpayable
InRMB
| Items | Year-beginningbalance | Increase | Decrease | Balanceyear-end | Reason |
Othernote：
49.Longtermpayrollpayable
（1）Statementoflong-termpayrollpayableNotapplicable
（2）ChangeofdefinedbenefitplansNotapplicableOthernote：
50.Estimatedliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | Reason |
| Repaymentpayable | 30,741,055.00 | ||
| Total | 30,741,055.00 | -- |
Othernote：
51.Deferredincome
InRMB
| Items | Beginningofterm | Increasedthisterm | Decreasedthisterm | Endofterm | Reason |
| GovernmentSubsidy | 110,740,322.21 | 13,660,000.00 | 13,939,029.06 | 110,461,293.15 | |
| Total | 110,740,322.21 | 13,660,000.00 | 13,939,029.06 | 110,461,293.15 | -- |
Detailsofgovernmentsubsidies：
InRMB
| Items | Beginningofterm | Newsubsidyincurrentperiod | Amounttransferredtonon-operationalincome | Otherincomerecordedinthecurrentperiod | Amountofcostdeductedinthecurrentperiod | Otherchanges | Endofterm | Asset-relatedorincome-related |
Othernote：
Fordetailsofgovernmentsubsidiesincludedindeferredrevenue,pleaserefertoNoteXIV.2.Governmentsubsidies.
52..Othernon-currentliabilities
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
Othernote：
53.Stockcapital
InRMB
| Year-beginningbalance | Changed（+，-） | Balanceinyear-end | |||||
| Issuanceofnewshare | Bonusshares | Capitalizationofpublicreserve | Other | Subtotal | |||
| Totalofcapitalshares | 507,772,279.00 | -1,250,430.00 | -1,250,430.00 | 506,521,849.00 | |||
Othernote：
Note:Thisyear,1,250,430.00restrictedsharesthathavebeengrantedbutnotyetunlockedwererepurchasedandcancelled,withareductionofRMB1,250,430.00,whichhasbeenverifiedbyPekingCertifiedPublicAccountants(specialgeneralpartnership),andthecapitalverificationreport(QXYZi(2021)No.0013)wasissued
onApril27,2021.
54.Otherequityinstruments
(1)Basicinformationontheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiod
(2)Movementoftheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiodOthernote：
55.Capitalreserves
InRMB
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Sharepremium | 1,832,397,142.44 | 5,914,533.90 | 1,826,482,608.54 | |
| Othercapitalreserves | 135,117,216.09 | 135,117,216.09 | ||
| Total | 1,967,514,358.53 | 5,914,533.90 | 1,961,599,824.63 |
Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:
ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.
56.Treasurystock
InRMB
| Items | Year-beginningbalance | Increaseinthecurrent | Decreaseinthecurrentperiod | Year-endbalance |
| Treasurystock | 7,525,438.20 | 7,525,438.20 | 0.00 | |
| Total | 7,525,438.20 | 7,525,438.20 |
Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:
ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.
57.Othercomprehensiveincome
InRMB
| Items | Year-beginning | Amountofcurrentperiod | Year-endbalanc | |||||
| Amount | Less： | Less： | Less： | After-ta | After-ta | |||
| balance | incurredbeforeincometax | Amounttransferredintoprofitandlossinthecurrentperiodthatrecogniedintoothercomprehensiveincomeinpriorperiod | Priorperiodincludedinothercompositeincometransfertoretainedincomeinthecurrentperiod | Incometaxexpenses | xattributetotheparentcompany | xattributetominorityshareholder | e | |
| 1.Othercomprehensiveincomethatcannotbereclassifiedinthelossandgaininthefuture | 115,367,833.87 | 3,237,349.34 | -847,238.36 | 809,337.34 | 3,275,250.36 | 118,643,084.23 | ||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 115,367,833.87 | 3,237,349.34 | -847,238.36 | 809,337.34 | 3,275,250.36 | 118,643,084.23 | ||
| 2.Othercomprehensiveincomereclassifiabletoprofitorlossinsubsequentperiods | 1,238,098.55 | -199,063.73 | -199,063.73 | 1,039,034.82 | ||||
| Translationdifferencesoffinancialstatementsdenominated | 1,238,098.55 | -199,063.73 | -199,063.73 | 1,039,034.82 | ||||
| Totalofothercomprehensiveincome | 116,605,932.42 | 3,038,285.61 | -847,238.36 | 809,337.34 | 3,076,186.63 | 119,682,119.05 |
Othernotesincludethevalidpartofgainandlossofacash-flowhedgeconvertedintoinitialamountofarbitrageditemsforadjustment:None
58.Specialreserves
InRMB
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
59.Surplusreserves
InRMB
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Statutorysurplusreserve | 94,954,652.14 | 3,291,193.33 | 98,245,845.47 | |
| Total | 94,954,652.14 | 3,291,193.33 | 98,245,845.47 |
Notetosurplusreserve,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:
Note:TheincreaseamountinthecurrentperiodisRMB3,291,193.33,includingRMB3,175,360.75accruedaccordingto10%ofthecurrentnetprofitandRMB115,832.57accruedfromothercomprehensiveincomecarry-overretainedearnings.
60.Retainedprofits
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Retainedearningsbeforeadjustmentsattheyearbeginning | 86,912,390.50 | 49,307,764.03 |
| Retainedearningsafteradjustmentsattheyearend | 86,912,390.50 | 49,307,764.03 |
| Add:NetprofitattributabletoownersoftheCompanyfortheperiod | 61,162,384.25 | 37,267,995.74 |
| Less:Appropriationtostatutorysurplusreserve | 3,175,360.75 | 3,888,292.80 |
| Commonstockdividendpayable | 15,195,655.47 | |
| Add：Othercomprehensiveearningsarecarriedforwardtoretainedearnings | 1,042,493.21 | 4,224,923.53 |
| Retainedprofitsattheperiodend | 130,746,251.74 | 86,912,390.50 |
Asregardsthedetailsofadjustedthebeginningundistributedprofits
(1)AstheretroactiveadjustmentonEnterpriseAccountingStandardsanditsrelatednewregulations,theaffectedbeginningundistributedprofitsareRMB0.00.
(2)Asthechangeoftheaccountingpolicy,theaffectedbeginningundistributedprofitsareRMB0.00.
(3)Asthecorrectionofsignificantaccountingerror,theaffectedbeginningundistributedprofitsareRMB0.00.
(4)Asthechangeofconsolidationscopecausedbythesamecontrol,theaffectedbeginningundistributedprofitsareRMB0.00.
(5)OtheradjustmentofthetotalaffectedbeginningundistributedprofitsareRMB0.00.
61.Businessincome,Businesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 2,265,990,629.90 | 1,900,247,328.79 | 2,097,432,885.06 | 1,808,092,705.48 |
| Otherbusiness | 27,757,262.16 | 8,272,084.49 | 11,531,802.74 | 6,205,689.54 |
| Total | 2,293,747,892.06 | 1,908,519,413.28 | 2,108,964,687.80 | 1,814,298,395.02 |
Whetherthenetprofitbeforeandafterdeductingnon-recurringgainsandlossesisnegativeafteraudit
□Yes√NoIncome-relatedinformation:
InRMB
| Type | Division1 | Division2 | Total | |
| Ofwhich | ||||
| Propertyleasemanagementandothers | 111,568,500.55 | 139,325,762.71 | ||
| Textile | 54,932,578.58 | 54,932,578.58 | ||
| Polarizer | 2,099,489,550.77 | 2,099,489,550.77 | ||
| Ofwhich | ||||
| Domestic | 2,039,625,757.16 | 2,039,625,757.16 | ||
| Overseas | 254,122,134.90 | 254,122,134.90 | ||
| Ofwhich | ||||
| Ofwhich | ||||
| Ofwhich | ||||
| Ofwhich | ||||
| Ofwhich |
Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:
TheincomecorrespondingtotheperformanceobligationsthathavenotbeenperformedorhavebeenperformedincompletelybutthecontracthasbeensignedattheendofthereportingperiodisRMB0.00,ofwhichRMB0.00isexpectedtoberecognizedasincomeintheyear,RMB0.00isexpectedtoberecognizedasincomeintheyear,andRMB0.00isexpectedtoberecognizedasincomeintheyear.Othernote:
62.Taxesandsurcharges
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Urbanconstructiontax | 1,625,005.70 | 718,695.23 |
| Educationsurcharge | 1,169,628.61 | 517,483.70 |
| Propertytax | 5,826,834.91 | 4,338,584.18 |
| Other | 1,902,078.87 | 1,772,362.54 |
| Total | 10,523,548.09 | 7,347,125.65 |
Othernote：
63.Salesexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 18,266,837.81 | 12,958,215.67 |
| Businessexpenses | 1,256,926.46 | 668,407.23 |
| Salesservice | 12,684,139.28 | 12,697,476.62 |
| Propertyinsurance | 2,716,981.13 | |
| Other | 3,048,451.71 | 2,320,131.35 |
| Total | 37,973,336.39 | 28,644,230.87 |
Othernote：
None
64.Administrativeexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 80,805,949.97 | 74,790,949.11 |
| Depreciationoffixedassets | 10,728,532.58 | 9,794,203.66 |
| Waterandelectricity | 2,123,594.28 | 2,576,447.96 |
| Intermediaryorgan | 8,120,482.28 | 3,271,775.61 |
| Intangibleassetsamortization | 5,030,106.23 | 1,612,363.59 |
| Travelexpenses | 468,553.20 | 408,221.21 |
| Officeexpenses | 1,192,408.92 | 946,055.89 |
| Businessentertainment | 1,754,789.06 | 615,454.09 |
| Lawsuitexpenses | 914,353.81 | 144,161.32 |
| Repaircharge | 2,057,702.25 | 1,366,609.60 |
| Propertyinsurance | 648,821.25 | 380,689.81 |
| Other | 8,243,536.32 | 9,188,002.51 |
| Total | 122,088,830.15 | 105,094,934.36 |
Othernote：
None
65.R&Dcosts
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 15,697,764.59 | 13,177,489.03 |
| Material | 83,197,051.56 | 49,679,847.18 |
| Depreciation | 3,326,098.79 | 2,984,978.79 |
| Fuel&Power | 976,547.62 | 1,017,795.21 |
| Travelexpenses | 177,340.24 | 226,949.44 |
| Other | 133,961.73 | 73,904.57 |
| Total | 103,508,764.53 | 67,160,964.22 |
Othernote:
None
66.FinancialExpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Interestexpenses | 24,113,442.39 | 4,175,380.96 |
| Less：Interestcapitalized | 9,807,167.26 | 3,940,565.29 |
| Interestincome | -1,655,853.59 | -3,702,735.59 |
| Exchangeloss | -20,976,430.83 | 8,108,404.80 |
| Discountinterestonacceptancebill | 1,390,467.41 | 0.00 |
| Feesandother | 6,805,197.79 | 3,647,403.40 |
| Total | -130,344.09 | 8,287,888.28 |
Othernote：
None
67.Otherincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| AmortizationforsubsidiesfornewproductionlinesandpurchaseofequipmentforthePhaseIIprojectofpolarizersforTFT-LCD | 3,000,000.00 | 3,000,000.00 |
| AmortizationoffundsforthepilotprojectofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince | 2,500,000.08 | 2,500,000.00 |
| AmortizationoflocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6) | 1,500,000.00 | 1,500,000.00 |
| AmortizationofsubsidyfundsforindustrializationprojectofpolarizersforTFT-LCD | 1,299,999.96 | 1,300,000.00 |
| ShenzhenMunicipalFinanceCommittee’spolarizerindustrializationprojectforsuper-sizedTVs | 1,250,000.00 | 0.00 |
| AmortizationofnationalsubsidyforTFT-LCDpolarizerphaseIIproject(Line6) | 1,000,000.00 | 1,000,000.00 |
| Amortizationofsubsidyfundsforthenarrowline(Line5)ofthefirst-phaseprojectofpolarizerforTFT-LCD | 500,000.04 | 500,000.00 |
| AmortizationofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory | 500,000.00 | 500,000.00 |
| AmortizationofsubsidyfundsforR&Dequipmentforkeytechnologiesofopticalcompensationfilmsforpolarizers | 500,000.04 | 500,000.00 |
| ShenzhenMunicipalAirEnvironmentQualityImprovementSpecialFundSubsidy | 494,931.57 | 468,931.57 |
| 2021SpecialMajorProjectAwardandSubsidySupportPlanforTechnologicalTransformationandDoubling | 367,666.68 | 0.00 |
| Amortizationoffundingfortechnologycenterconstruction | 300,000.00 | 300,000.00 |
| Amortizationofsubsidiesforpurchaseofimportedequipmentandtechnology | 175,090.20 | 175,090.20 |
| Amortizationofspecialfundsfortextiles | 142,857.16 | 142,857.16 |
| Amortizationofcapitalsubsidyforchange&renovationofoldelevators | 142,255.72 | 142,255.72 |
| AmortizationofinnovativeandentrepreneurialfundsforthefirstphaseoftheTFT-LCDpolarizerproject | 50,000.04 | 50,000.00 |
| AmortizationofinnovationandentrepreneurshipfundsofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory | 50,000.04 | 50,000.00 |
| AmortizationofinnovativeandentrepreneurialfundsforthesecondphaseoftheTFT-LCDpolarizerproject(Line6) | 50,000.04 | 50,000.00 |
| Dyeingprojecttechnicaltransformationsubsidy | 39,000.00 | 0.00 |
| Amortizationofenergy-savingrenovationsubsidyfunds | 27,172.70 | 29,642.93 |
| Subsidiesforinvestmentprojectsinspecialtechnologicaltransformationanddoublingfortechnologicaltransformationin2020 | 19,000.00 | 11,083.33 |
| Fundingforkeytechnologyresearchanddevelopmentofpolarizersforultra-thinIPSsmartphoneterminals | 16,666.67 | 0.00 |
| AmortizationofFundsforIntroducingAdvancedTechnology | 14,388.12 | 14,388.10 |
| ShenzhenBureauofIndustryandInformationTechnology's2021IndustrialEnterprisesExpansionCapacityIncentiveProjectSubsidy | 2,590,000.00 | 0.00 |
| ShenzhenScienceandTechnologyInnovationCommittee2020EnterpriseR&DSubsidy | 1,018,000.00 | 0.00 |
| HeadquartersEconomicComprehensiveEconomicContributionAward(FutianDistrictEnterpriseDevelopmentCenter) | 500,000.00 | 0.00 |
| ShenzhenPingshanDistrictFinance | 500,000.00 | 0.00 |
| Bureau2019PingshanDistrictHarmoniousLaborRelationsEnterpriseAwardFund | ||
| Thesecondbatchoffundingofthe2020ScienceandTechnologyInnovationSpecialFundofShenzhenPingshanDistrictFinanceBureau(standardizedfunding) | 360,000.00 | 0.00 |
| Thesecondbatchofspecialfundsofscientificandtechnologicalinnovationin2020ofShenzhenPingshanDistrictFinanceBureau(High-techEnterpriseRecognitionAward) | 300,000.00 | 0.00 |
| StableJobSubsidy | 118,832.69 | 160,712.86 |
| MunicipalEcologicalEnvironmentBureauCleanerProductionIncentiveSupportSubsidy | 100,000.00 | 0.00 |
| Thesixthbatchofpre-jobtrainingsubsidiesbyLonggangDistrictofHumanResourcesBureau | 68,000.00 | 0.00 |
| ShenzhenPingshanDistrictHumanResourcesBureau’sone-timesubsidyforenterprisestoabsorbandfilepoorlaborers | 60,000.00 | 0.00 |
| ReceivedsubsidyfromLonggangDistrictHumanResourcesBureauforwork-for-training | 27,000.00 | 0.00 |
| SubsidyfromShenzhenFutianDistrictHumanResourcesBureauforwork-for-worktraining | 16,500.00 | 0.00 |
| SubsidyfromLuohudistrictforwork-for-worktraining | 15,500.00 | 0.00 |
| EmployeematernitybenefitsreturnedbySocialSecurityAdministration | 10,592.53 | 32,609.51 |
| UnpaidVAT(inputplusdeduction) | 9,899.54 | 0.00 |
| ThesecondbatchofspecialfundsforscientificandtechnologicalinnovationbyShenzhenPingshanDistrictFinanceBureauin2020(IntellectualPropertyAward) | 4,800.00 | 0.00 |
| Taxofficefeerefund | 5,225.51 | 24,898.73 |
| Sewagefeerefund | 0.00 | 597,362.55 |
| ShenzhenIndustrialandCommercialElectricityCostReductionSubsidy | 0.00 | 6,952,943.71 |
| SocialSecurityAdministrationpremiumrefund | 0.00 | 1,815.00 |
| PingshanDistrictFinanceBureau'sSecondBatchofEpidemicSubsidies | 759.00 | |
| 2019Water-savingCarrierAwardFundofShenzhenWaterAffairsBureau | 374,102.00 | |
| ShenzhenPingshanDistrictFinanceBureau2018HarmoniousLaborRelationsEnterpriseAwardFund | 1,000,000.00 | |
| ShenzhenScienceandTechnologyInnovationCommittee2018EnterpriseR&DSubsidy | 1,278,000.00 | |
| PingshanDistrictScienceandTechnologyInnovationBureau's2019High-techEnterpriseRecognitionAward | 50,000.00 | |
| PingshanDistrictSubsidyforWork-for-Training | 1,645,500.00 | |
| ShenzhenPingshanDistrictHumanResourcesBureautrialtrainingsubsidy | 111,600.00 | |
| ShenzhenPingshanDistrictFinanceBureausubsidysupportforthesteadygrowthofforeigntradeinPingshanDistrictin2020 | 1,200,000.00 | |
| ReceivedrefundofunemploymentbenefitsforcompaniesaffectedbytheepidemicfromtheSocialSecurityBureau | 2,709,874.84 | |
| MarketSupervisionAdministration'sSecondBatchofPatentSubsidiesin2018 | 9,000.00 | |
| Governmentsubsidizesforepidemicprotectivesupplies | 10,000.00 | |
| CulturalTourismStabilizationSupportSubsidy | 100,000.00 | |
| Thefirstbatchofspecialfundsfor | 966,000.00 |
| scientificandtechnologicalinnovationin2019 | ||
| ReceivedsubsidiesfromthePublicEmploymentServiceCenterforstabilizingjobs | 1,425.20 | |
| ReceivedtherewardfortheepidemicpreventioneffectfromtheBureauofIndustryandInformationTechnology | 20,000.00 | |
| Receivedsubsidyforhousingepidemicpreventionat145#FenghuangRoadfromShenzhenLuohuDistrictHousingandConstructionBureau | 5,638.00 | |
| ReceivedtheepidemicpreventionsubsidyforShenzhenNo.52TextileCompound,Tianbei2ndRoadfromtheHousingandConstructionBureauofLuohuDistrictShenzhen | 8,531.45 | |
| Urbanconstructiontaxandsurchargeshalved | 1,047.51 | |
| Stampdutyhalved | 183.32 | |
| LuohuDistrictEpidemicPreventionSubsidy | 10,000.00 |
68.Investmentincome
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
| Long-termequityinvestmentreturnsaccountedforbyequitymethod | 33,984.66 | -3,446,613.86 |
| Investmentincomefromthedisposaloflong-termequityinvestment | 20,779.93 | 0.00 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 2,551,896.02 | 2,946,592.79 |
| Structureddepositinterest | 2,749,600.18 | 18,231,107.84 |
| Interestincomeontermdepositsover1year | 2,350,000.00 | 853,205.47 |
| Netmonetarygains | 14,956,752.27 | 4,015,378.50 |
| Total | 22,663,013.06 | 22,599,670.74 |
Othernote：
None
69.Netexposurehedgingincome
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
Othernote：
70.Gainsonthechangesinthefairvalue
InRMB
| Source | Amountofthisperiod | Amountoflastperiod |
| Transactionfinancialassets | 536,575.34 | |
| Othernon-currentfinancialassets | 2,150,943.40 | 2,150,943.40 |
| Total | 2,150,943.40 | 2,687,518.74 |
Othernote：
None
71.Creditimpairmentloss
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
| Lossofbaddebtsinotherreceivables | -7,201,148.60 | -1,828,410.68 |
| Lossofbadnotereceivable | -280,565.00 | -84,490.74 |
| Lossofbadaccountsreceivable | 2,500,153.07 | -8,481,632.23 |
| Total | -4,981,560.53 | -10,394,533.65 |
Othernote：
72.Lossesfromassetimpairment
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| II.LossofinventorypriceandImpairmentofcontractperformancecosts | -83,475,951.11 | -65,942,828.90 |
| V.Impairmentlossoffixedassets | -32,769.22 | -6,469,648.73 |
| Total | -83,508,720.33 | -72,412,477.63 |
Othernote：
73.Assetdisposalincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| I.Gains&lossesonforeigninvestmentinfixedassets | -597,458.77 | 276,544.73 |
74.Non-Operationincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Recordedintheamountofthenon-recurringgainsandlosses |
| Insurancecompensation | 3,477,438.60 | 3,477,438.60 | |
| Payablewithoutpayment | 1,371,678.99 | ||
| Liquidationprofitandloss | 17,140,459.60 | 17,140,459.60 | |
| Other | 667,888.44 | 73,983.39 | 667,888.44 |
| Total | 21,285,786.64 | 1,445,662.38 |
Governmentsubsidiesrecordedintocurrentprofitsandlosses：
InRMB
| Items | Issuingbody | Issuingreason | Nature | Whethertheimpactofsubsidiesonthecurrentprofitandloss | Whetherspecialsubsidies | Amountofcurrentperiod | Amountofpreviousperiod | Assets-related/income-related |
Othernote：
75.Non-currentexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Theamountofnon-operatinggains&lossed |
| Non-currentassetDispositionloss | 369,187.12 | 3,315.15 | 369,187.12 |
| Fineexpenses | 1,309,172.27 | 115,314.20 | 1,309,172.27 |
| Other | 7,903.96 | 19,791.92 | 7,903.96 |
| Total | 1,686,263.35 | 138,421.27 |
Othernote：
76.Incometaxexpenses
(1)Incometaxexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentincometaxexpense | 8,174,724.28 | 8,422,038.43 |
| Deferredincometaxexpense | 2,944,072.68 | -218,317.45 |
| Total | 11,118,796.96 | 8,203,720.98 |
(2)Reconciliationofaccountprofitandincometaxexpenses
InRMB
| Items | Amountofcurrentperiod |
| Totalprofits | 86,233,463.16 |
| Currentincometaxexpenseaccountedbytaxandrelevantregulations | 21,558,365.79 |
| Influenceofdifferenttaxratesappliedbysomesubsidiaries | -7,491,633.67 |
| Non-deductiblecosts,expensesandlosses | 4,571,839.81 |
| Taximpactbytheunrecognizeddeductiblelossesanddeductibletemporarydifferencesinpreviousyears | 8,059,643.49 |
| Profitandlossofjointventureandassociatedenterprisesaccountedforbyequitymethod | -53,103.78 |
| Taximpactofresearchanddevelopmentfeeplusdeduction | -15,526,314.68 |
| Incometaxfee | 11,118,796.96 |
Othernote
77.OthercomprehensiveincomeRefertothenotes57
78.Supplementaryinformationtocashflowstatement
(1)Othercashreceivedrelevanttooperatingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| LetterofCreditDeposit | 35,875,977.74 | 95,971,397.61 |
| Interestincome | 1,655,853.59 | 3,702,735.59 |
| GovernmentSubsidy | 19,363,739.42 | 12,029,059.97 |
| Currentaccount | 31,729,758.78 | 11,704,807.26 |
| Total | 88,625,329.53 | 123,408,000.43 |
Notetoothercashreceivedinconnectionwithoperatingactivities:None
(2)Othercashpaidrelatedtooperatingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Paymentofcreditdeposit | 164,509,022.41 | 50,257,183.69 |
| Cash | 48,012,370.68 | 37,855,834.17 |
| Currentaccountandother | 12,867,319.88 | 9,104,639.66 |
| Total | 225,388,712.97 | 97,217,657.52 |
Notetoothercashpaidinconnectionwithoperatingactivities:None
(3)Cashreceivedrelatedtootherinvestmentactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 1,128,309,484.61 | 3,112,161,370.37 |
| L/Cmarginforpurchaseofline7equipment | 126,799,633.00 | |
| Creditdepositfornon-Line7equipment | 1,900,000.00 | |
| Total | 1,128,309,484.61 | 3,240,861,003.37 |
Notetoothercashreceivedrelatedtootherinvestmentactivities：None
(4).Cashpaidrelatedtootherinvestmentactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 965,000,000.00 | 3,004,000,000.00 |
| L/Cmarginforpurchaseofline7equipment | 2,150,000.00 | |
| Creditdepositfornon-Line7equipment | 1,900,000.00 | |
| Equitytransactionexpenses | 15,275.20 | |
| Total | 965,000,000.00 | 3,008,065,275.20 |
NotetootherCashpaidrelatedtootherinvestmentactivities
（5）Othercashreceivedinrelationtofinancingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
（6）Cashpaidrelatedwithfinancingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Restrictedstockofstockrepurchaseincentiveobject | 7,820,298.30 | 9,344,136.30 |
| Leasepayment | 4,817,974.70 | |
| Total | 12,638,273.00 | 9,344,136.30 |
NotetootherCashpaidrelatedwithfinancingactivities：
79.SupplementInformationforcashflowstatement
（1）SupplementInformationforcashflowstatement
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| I.Adjustingnetprofittocashflowfromoperatingactivities | -- | -- |
| Netprofit | 75,114,666.20 | 43,497,645.15 |
| Add:Impairmentlossprovisionofassets | 83,508,720.33 | 82,807,011.28 |
| Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets | 182,116,694.00 | 117,440,111.32 |
| DepreciationofUserightassets | 4,540,987.37 | |
| Amortizationofintangibleassets | 5,030,106.23 | 1,612,363.59 |
| AmortizationofLong-termdeferredexpenses | 1,171,163.32 | 582,518.72 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets | -597,458.77 | -276,544.73 |
| Fixedassetsscraploss | 369,187.12 | 3,315.15 |
| Lossonfairvaluechanges | -2,150,943.40 | -2,687,518.74 |
| Financialcost | 14,306,275.13 | 455,850.38 |
| Lossoninvestment | -22,663,013.06 | -22,599,670.74 |
| Decreaseofdeferredincometaxassets | 1,534,828.48 | 374,601.17 |
| Increasedofdeferredincometaxliabilities | 2,500,994.33 | -10,802,679.08 |
| Decreaseofinventories | -270,089,816.70 | -39,880,044.30 |
| Deceaseofoperatingreceivables | -58,547,894.61 | -184,426,504.09 |
| IncreasedofoperatingPayable | -25,563,036.85 | 15,830,477.68 |
| Other | 4,981,560.53 | |
| Netcashflowsarisingfromoperatingactivities | -4,436,980.35 | 1,930,932.76 |
| II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows: | -- | |
| Conversionofdebtintocapital | ||
| Convertibleloanduewithin1year | ||
| Financingoffixedassetsleased | ||
| 3.Movementofcashandcashequivalents： | -- | -- |
| Endingbalanceofcash | 302,408,433.72 | 278,337,236.95 |
| Less:Beginningbalanceofcashequivalents | 278,337,236.95 | 268,646,588.18 |
| Add：Endbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseofcashandcashequivalent | 24,071,196.77 | 9,690,648.77 |
(2)NetCashpaidofobtainingthesubsidiary
InRMB
| Amount | |
| Ofwhich： | -- |
| Ofwhich： | -- |
| Ofwhich： | -- |
Othernote：
(3)NetCashreceiveofdisposalofthesubsidiary
InRMB
| Ofwhich： | -- |
| Ofwhich： | -- |
| Ofwhich： | -- |
Othernote：
(4)Componentofcashandcashequivalents
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| I.Cash | 302,438,856.00 | 278,337,236.95 |
| Including：Cashathand | 792.64 | 4,127.10 |
| Demandbankdeposit | 302,407,641.08 | 271,085,025.10 |
| Demandothermonetaryfunds | 7,248,084.75 | |
| III.Balanceofcashandcashequivalentsattheperiodend | 302,408,433.72 | 278,337,236.95 |
Othernote：
80.Noteofstatementofchangesintheowner'sequitySpecifythedescriptionoftheitem"others"andtheadjustedamountofthebalanceattheendoflastyear:
81.Theassetswiththeownershiporuserightrestricted
InRMB
| Items | Bookvalueattheendofthereportingperiod | Causeofrestriction |
| Fixedassets | 243,106,926.00 | Mortgage |
| Intangibleassets | 33,875,655.97 | Mortgage |
| Total | 276,982,581.97 | -- |
Othernote：
82.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
InRMB
| Items | Closingforeigncurrencybalance | Exchangerate | ClosingconverttoRMBbalance |
| Monetaryfunds | -- | -- | |
| Including：USD | 3,396,814.97 | 6.3757 | 21,657,073.20 |
| Euro | |||
| HKD | 806,319.92 | 0.8176 | 659,247.17 |
| Yen | 15,363,481.00 | 0.0554 | 851,136.85 |
| Accountpayable | -- | -- | |
| Including：USD | 9,987,772.57 | 6.3757 | 63,679,041.57 |
| Euro | |||
| HKD | |||
| Prepayments | |||
| Including：USD | 588,809.23 | 6.3757 | 3,754,071.01 |
| Yen | 30,197,869.00 | 0.0554 | 1,673,414.91 |
| Otherreceivables | |||
| Including：USD | 37,399.02 | 6.3757 | 238,444.93 |
| accountspayable | |||
| Including：USD | 4,122,038.21 | 6.3757 | 26,280,879.02 |
| Yen | 3,043,388,138.00 | 0.0554 | 168,649,353.67 |
| Otherpayables | |||
| Including：USD | 676,686.00 | 6.3757 | 4,314,346.93 |
| Yen | 3,381,984.00 | 0.0554 | 187,361.91 |
| Euro | 22,500.00 | 7.2197 | 162,443.25 |
Othernote：
(2)Notetooverseasoperatingentities,includingimportantoverseasoperatingentities,witchshouldbedisclosedaboutitsprincipalbusinessplace,functioncurrencyforbookkeepingandbasisforthechoice.Incaseofanychangeinfunctioncurrency,thecauseshouldbedisclosed.
□Applicable√Notapplicable
83.HedgingArbitrageAccordingtoarbitragecategorytodisclosearbitrageitem,relevantarbitragetoolsandthearbitragedriskqualitativeandquantitativeinformation:
84.Governmentsubsidies
（1）Governmentsubsidiesconfirmedincurrentperiod
InRMB
| Items | Amount | Project | Amountincludedincurrentprofitandloss |
| Fundingsubsidyforchangeandrenovationofoldelevators | 720,241.51 | Otherincome | 142,255.72 |
| Textilespecialfunds | 142,857.09 | Otherincome | 142,857.16 |
| ShenzhenSpecialFundSubsidyforAtmosphericEnvironmentQualityImprovement-ShenzhenBeautyCentury | 442,000.00 | Otherincome | 52,000.00 |
| SubsidyforthetechnicaltransformationprojectofdyeingequipmentbytheBureauofIndustryandInformationTechnology | 91,000.00 | Otherincome | 39,000.00 |
| SubsidyfundsforindustrializationprojectofpolarizersforTFT-LCD | 433,333.39 | Otherincome | 1,299,999.96 |
| Subsidyfundsforthenarrowline(Line5)ofthefirst-phaseprojectofpolarizerforTFT-LCD | 499,999.96 | Otherincome | 500,000.04 |
| Amortizationofsubsidiesforpurchaseofimportedequipmentandtechnology | 151,746.19 | Otherincome | 175,090.20 |
| InnovativeandentrepreneurialfundsforthefirstphaseoftheTFT-LCDpolarizerproject | 49,999.94 | Otherincome | 50,000.04 |
| Introducingadvancedtechnologyfunding | 14,388.09 | Otherincome | 14,388.12 |
| InnovationandentrepreneurshipfundsofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory | 162,499.96 | Otherincome | 50,000.04 |
| Fundingfortechnologycenterconstruction | 975,000.00 | Otherincome | 300,000.00 |
| ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory | 1,625,000.00 | Otherincome | 500,000.00 |
| SubsidyfundforR&Dequipmentofkeytechnologyofopticalcompensationfilmforpolarizer | 2,624,999.96 | Otherincome | 500,000.04 |
| LocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6) | 9,750,000.00 | Otherincome | 1,500,000.00 |
| FundsforthepilotprojectofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince | 16,249,999.92 | Otherincome | 2,500,000.08 |
| LocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6) | 6,500,000.00 | Otherincome | 1,000,000.00 |
| SubsidiesfornewproductionlinesandpurchaseofequipmentforthePhaseIIprojectofpolarizersforTFT-LCD | 19,500,000.00 | Otherincome | 3,000,000.00 |
| InnovativeandentrepreneurialfundsforthesecondphaseoftheTFT-LCDpolarizerproject(Line6) | 324,999.96 | Otherincome | 50,000.04 |
| Investmentfundswithinthecentralbudgetofthepolarizerindustrializationprojectforsuper-largeTVs(Line7) | 28,750,000.00 | Otherincome | 1,250,000.00 |
| Fundingforkeytechnologyresearchanddevelopmentofpolarizersforultra-thinIPSsmartphoneterminals | 1,983,333.33 | Otherincome | 16,666.67 |
ShenzhenMunicipalFinanceCommittee(2018N007MajorResearchanddevelopmentofkeytechnologiesforhigh-performancepolarizersforlarge-sizedisplaypanels)
| 6,000,000.00 | Otherincome | ||
| ShenzhenSpecialFundSubsidyforAtmosphericEnvironmentQualityImprovement-SAPOPhotoelectric | 147,643.86 | Otherincome | 442,931.57 |
| Subsidiesforinvestment | 159,916.67 | Otherincome | 19,000.00 |
| projectsinspecialtechnologicaltransformationfortechnologicaltransformationanddoublingin2020 | |||
| FundingbyShenzhenMunicipalBureauofFinance2020N028Keytechnologyresearchanddevelopmentprojectoflow-colorpolarizedcircularpolarizerforfixed-curvatureAMOLED | 2,500,000.00 | Otherincome | |
| Awardssupportby2021specialmajorprojectsoftechnologicaltransformationanddoubling | 10,662,333.32 | Otherincome | 367,666.68 |
| Subsidyfundsforenergy-savingrenovation | Otherincome | 27,172.70 |
（2）Governmentsubsidyreturn
□Applicable√NotapplicableOthernote：
85.Other
(1)ArbitrationmattersbetweentheCompanyandJinjiangGroupAttheendof2016,theCompanyintroducedJinjiangGroupasastrategicinvestorforthecapitalincreaseandshareexpansionofSAPOPhotoelectric.TheCompany,SAPOPhotoelectric,JinjiangGroupandHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership),alimitedpartnershipestablishedbytheformerJinjiangGroupastheactualcontroller,jointlysignedtheCooperationAgreement.JinjiangGroupmadeacommitmenttotheperformanceofSAPOPhotoelectricfrom2017to2019,andJinjiangGrouppromisedthatifthepromisedincomeandnetprofitwerenotfulfilled,itwouldmakeadifferencebetweenthepromisednetprofitandtheactualprofit.In2018and2019,JinjiangGroupfailedtofulfillitsperformancecommitmentsasagreed,andtheperformancecompensationin2018wasreceivedbytheCompanyin2019asagreed,totalingRMB197,268,700;Fortheperformancecompensationin2019,JinjiangGroupbelievesthatitcan'tleadtheoperationandmanagementofSAPOPhotoelectric,whichleadstothefailuretorealizethecontractualpurposeoftheCooperationAgreement,andappliestoShenzhenCourtofInternationalArbitrationforarbitration.OnMarch25,2021,thearbitrationtribunalmadethefollowingrulingonthiscase:(I)Theapplicantisexemptedfromtheperformancecompensationobligationin2019agreedinArticle3.1oftheCooperationAgreement,anddoesnotneedtopaySAPOPhotoelectricthecompensationfortheperformancedifferencein2019ofRMB244,783,800;(II)ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000in
thiscaseshallbebornebytheapplicant;(III)Otherarbitrationclaimsoftheapplicantarenotsupported.Thisawardshallbefinalandtakelegaleffectfromthedateitismade.
(2)ShenzhenXieliAutomobileEnterpriseCo.,Ltd.(propertynotyetdisposedof)ShenzhenXieliAutomobilCo.,Ltd.isaSino-foreignjointventureinvestedbytheCompanyandHongKongXieliMaintenanceCo.Ltd.in1981,witharegisteredcapitalofRMB3.12million,50%ofwhoseequityisheldtheCompany.TheoperatingperiodoftheCompanyendedin2008,anditsbusinesslicensewasrevokedin2014.ThemainassetsoftheCompanyarerealestate.TheindustrialandcommerciallicenseofShenzhenXieliwascancelledinMarch2020,buttherearestillthreepropertiesunderitsname,thedisposalofwhichisrequiredtoberesolvedafterfurtherconsultationbetweentheshareholdersofbothparties.OnJuly26,2021,theCompanyfiledalawsuitwithYantianDistrictPeople'sCourtinShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulationonMarch9,2020,onwhichthecourtgaveajudgmentonNovember21,2021torevokethecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulation.VIII.Changesofmergescope
1.Businessmergernotundersamecontrol
(1)Businessmergernotundersamecontrolinreportingperiod
InRMB
| Name | Timeandplaceofgainingthestockright | Costgainingthestockrights | Proportionofstockrights | Waytogainthestockrights | Purchasedate | Recognitionbasisofpurchasedate | Incomeofacquireeduringthepurchasedatetoperiod-end | Netprofitsofacquireeduringthepurchasedatetoperiod-end |
Othernote：
（2）CombinedcostandGoodwill
InRMB
Othernote
(3)TheidentifiableassetsandliabilitiesofacquireeatpurchasedateInRMB
InRMB
| Fairvalueofthepurchasedate | Bookvalueofthepurchasedate |
Othernote
(4)Theprofitorlossfromequityheldbythedatebeforeacquisitioninaccordancewiththefairvaluemeasuredagain、Whetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizeenterprisesmergerandgainingthecontrolduringthereportingperiod
□Yes√No
(5)NotetomergercouldnotbedeterminedreasonableconsiderationorIdentifiableassets,Fairvalueofliabilitiesoftheacquireeatacquisitiondateorclosingperiodofthemerge
（6）Othernote
2.Businesscombinationunderthesamecontrol
(1)BusinesscombinationunderthesamecontrolduringthereportingperiodNotapplicableOthernote：
(2)CombinationcostNotapplicable
Othernote：
(3)ThebookvalueoftheassetsandliabilitiesofthemergedpartyonthedateofconsolidationNotapplicableOthernote：
3.CounterpurchaseBasicinformationoftrading,thebasisoftransactionsconstitutecounterpurchase,theretainassets,liabilitiesofthelistedcompanieswhetherconstitutedabusinessanditsbasis,thedeterminationofthecombinationcosts,theamountandcalculationofadjustedrightsandinterestsinaccordancewiththeequitytransactionprocess.Notapplicable
4.ThedisposalofsubsidiaryWhetherthereisasingledisposaloftheinvestmenttosubsidiaryandlostcontrol
□Yes√No
Whethertherearemultipletransactionsstepbystepdisposetheinvestmenttosubsidiaryandlostcontrolinreportingperiod
□Yes√No
5.OtherreasonsforthechangesincombinationscopeNotetothechangeintheconsolidationscope(e.g.newsubsidiaries,liquidationsubsidiaries,etc.)causedbyotherreasonsandrelevantinformation:
6.OtherIX.Equityinotherentities
1.Equityinsubsidiary
(1)Thestructureoftheenterprisegroup
| Subsidiary | Mainoperation | Registeredplace | Businessnature | Share-holdingratio | Acquiredway | |
| Directly | Indirectly | |||||
| ShenzhenLishiIndustryDevelopmentCo.,Ltd | Shenzhen | Shenzhen | Domestictrade,PropertyManagement | 100.00% | Establish | |
| ShenzhenHuaqiangHotel | Shenzhen | Shenzhen | Accommodation,restaurants,businesscenter; | 100.00% | Establish | |
| ShenzhenShenfangRealEstateManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Shenzhen | Shenzhen | Productionoffullyelectronicjacquardknittingwholeshape | 100.00% | Establish | |
| ShenzhenShenfangSungangRealEstateManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| SAPOPhotoelectric | Shenzhen | Shenzhen | Polarizerproductionand | 60.00% | ||
| sales | ||||||
| ShenzhenShengjinlianTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Polarizerproductionandsales | 100.00% | Establish | |
| Shengtou(Hongkong)Co.,Ltd. | Hongkong | Hongkong | Salesofpolarizer | 100.00% | Establish |
Explanationthattheshareholdingratioinsubsidiariesisdifferentfromthevotingrightratio:NoneBasisforholdinghalforlessvotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfvotingrightsbutnotcontrollingtheinvestee:NoneFortheimportantstructuredsubjectsincludedinthescopeofconsolidation,thecontrolbasisis:NoneBasisfordeterminingwhetherthecompanyisanagentoraprincipal:NoneOthernote：Note
（2）Significantnotwholly-ownedsubsidiaries
InRMB
| Name | Holdingproportionofnon-controllinginterest | Profitorlossattributabletonon-controllinginterest | Dividenddeclaredtonon-controllinginterest | Closingbalanceofnon-controllinginterest |
| SAPOPhotoelectric | 40.00% | 15,173,715.28 | 1,142,495,431.83 |
Othernote：
None
（3）Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries
InRMB
| Subsidiaries | Closingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | |
| SAPOPhotoelectric | 1,622,715,947.38 | 2,581,716,148.26 | 4,204,432,095.64 | 521,127,167.55 | 827,066,348.51 | 1,348,193,516.06 | 1,493,320,590.48 | 2,177,130,756.68 | 3,670,451,347.16 | 399,975,943.39 | 452,171,112.38 | 852,147,055.77 |
InRMB
| Subsidiaries | Amountofcurrentperiod | Amountofpreviousperiod | ||||||
| Operating | Netprofit | Total | Cashflow | Operating | Netprofit | Total | Cashflow | |
| revenue | comprehensiveincome | fromoperatingactivities | revenue | comprehensiveincome | fromoperatingactivities | |||
| SAPOPhotoelectric | 2,126,851,011.63 | 37,934,288.19 | 37,934,288.19 | -11,450,771.90 | 1,961,577,740.37 | 16,768,253.29 | 16,768,253.29 | -1,921,942.93 |
Othernote：
None
(4)SignificantrestrictionsofusingenterprisegroupassetsandpayoffenterprisegroupdebtNone
(5)ProvidefinancialsupportorothersupportforstructureentitiesincorporateintothescopeofconsolidatedfinancialstatementsNoneOthernote：
None
2.ThetransactionoftheCompanywithitsowner’sequitysharechangedbutstillcontrollingthesubsidiary
(1)Notetoowner’sequitysharechangedinsubsidiaryNone
(2)Thetransaction’sinfluencetoequityofminorityshareholdersandattributabletotheowner'sequityoftheparentcompanyOthernoteNone
3.Equityinjointventurearrangementorassociatedenterprise
(1)Significantjointventurearrangementorassociatedenterprise
| NameofSubsidiary | MainPlacesofOperation | RegistrationPlace | NatureofBusiness | ShareholdingRatio(%) | Theaccountingtreatmentofinvestmentinassociates | |
| direct | indirect | |||||
| Jointventure： | ||||||
| ShenzhenGuanhuaPrinting& | Shenzhen | Shenzhen | Propertyleasing | 50.16% | Equitymethod | |
| DyeingCo.,Ltd. | ||||||
| AnhuiHuapengTextileCo.,Ltd. | Anhui | Anhui | Manufacturing | 50.00% | Equitymethod | |
| Associatedenterprise | ||||||
| ShenzhenChanglianfaPrintinganddyeingCompany | Shenzhen | Shenzhen | Propertyleasing | 40.25% | Equitymethod | |
| JordanGarmentFactory | Jordan | Jordan | Manufacturing | 35.00% | Equitymethod | |
| YehuiInternationalCo.,Ltd. | Hongkong | Hongkong | Manufacturing | 22.75% | Equitymethod |
Explanationthattheshareholdingratiointhejointventureorassociatedenterpriseisdifferentfromthevotingrightratio:
Basisforholdinglessthan20%ofvotingrightsbutwithsignificantinfluence,orholding20%ormoreofvotingrightsbutwithoutsignificantinfluence:
（2）TheSummarizedFinancialInformationofJointVentures
InRMB
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod | |
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | ||
| Currentassets | 37,787,147.72 | 19,854,144.21 |
| Non-currentassets | 228,639,403.03 | 241,137,964.49 |
| Totalassets | 266,426,550.75 | 260,992,108.70 |
| Currentliabilities | 18,194,214.40 | 12,261,343.60 |
| Non-currentliabilities | 35,190,853.69 | 37,356,444.69 |
| Totalliabilities | 53,385,068.09 | 49,617,788.29 |
| Attributabletoshareholdersoftheparentcompany | 213,041,482.67 | 211,374,320.41 |
| Shareofnetassetscalculatedbystake | 106,861,607.70 | 106,025,359.12 |
| --Goodwill | 21,595,462.44 | 21,595,462.44 |
| --Other | 285,343.61 | 285,343.61 |
| Operatingincome | 21,404,639.29 | 14,623,800.97 |
| Financialexpenses | -174,304.72 | -39,339.28 |
| Incometaxexpenses | 499,490.10 | -2,118,023.83 |
| Netprofit | 614,155.44 | -3,422,861.88 |
| Totalcomprehensiveincome | 614,155.44 | -3,422,861.88 |
Othernote
(3)Mainfinancialinformationofsignificantassociatedenterprise
InRMB
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod |
Othernote
(4)Summaryfinancialinformationofinsignificantjointventureorassociatedenterprise
InRMB
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod | |
| Jointventure： | -- | -- |
| Totalamountoftheproratacalculationofthefollowingitems | -- | -- |
| Associatedenterprise： | -- | -- |
| Totalamountoftheproratacalculationofthefollowingitems | -- | -- |
Othernote
(5)NotetothesignificantrestrictionsoftheabilityofjointventureorassociatedenterprisetransferfundstotheCompany
(6)TheexcesslossofjointventureorassociatedenterpriseOthernote
(7)Theunrecognizedcommitmentrelatedtojointventureinvestment
(8)Contingentliabilitiesrelatedtojointventureorassociatedenterpriseinvestment
4.Significantcommonoperation
5.EquityofstructureentitynotincludinginthescopeofconsolidatedfinancialstatementsRelatednotestostructureentitynotincludinginthescopeofconsolidatedfinancialstatements
6.OtherX.RisksRelatedtoFinancialInstrumentsXI.Thedisclosureofthefairvalue
1.Closingfairvalueofassetsandliabilitiescalculatedbyfairvalue
InRMB
| Items | Closingfairvalue | |||
| Firvaluemeasurementitemsatlevel1 | Firvaluemeasurementitemsatlevel2 | Firvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| IIInconsistentfairvaluemeasurement | -- | -- | -- | -- |
XII.Relatedpartiesandrelated-partytransactions
1.Parentcompanyinformationoftheenterprise
| Name | Registeredaddress | Nature | Registeredcapital | TheparentcompanyoftheCompany'sshareholdingratio | TheparentcompanyoftheCompany’svoteratio |
| ShenzhenInvestmentHoldingsCo.,Ltd. | 18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen | Equityinvestment,Real-estateDevelopmentandGuarantee | 2,800,900.00 | 46.21% | 46.21% |
Notetotheparentcompany:
Thecompanyisauthorizedandapprovedtobestate-ownedindependentcompanybyShenzhenGovernment,anditExecutesfinancialcontributorfunctiononstate-ownedenterprisewithinauthorizationscope.Therefore,theCompany’sultimatecontrollerisShenzhenInvestmentHoldingsCo.,Ltd.Othernote：None
2.SubsidiariesoftheCompanyFordetailsofthesubsidiaryoftheCompany,see"SectionXFinancialReportIX.Interestsinothersubjects
3.InformationonthejointventuresandassociatedenterprisesoftheCompanyForimportantjointventuresorjointventuresoftheCompany,seethenotestothejointventureandjointventuresoftheCompany.See"SectionXFinancialReportIX.Interestsinotherentities.Othernote
4.OtherRelatedpartiesinformation
| Otherrelatedparty | RelationshiptotheCompany |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | ChairmanoftheBoardIstheViceChairmanoftheCompany |
| SuzhouAdvantageFordInvestmentCenter(Limitedpartnership) | ThecontrollingpartyofSAPOShareholder |
| Shengto(HK)Co.,Ltd. | TheCompanyExecutivesareDirectorofthecompany |
| HengmeiPhotoelectricCo.,Ltd. | SharingCompanyofSuzhouAdvantageFordInvestmentCenter(Limitedpartnership) |
| ShenzhenXinfangKnittingCo.,Ltd. | SharingCompany |
| ShenzhenDailishiUnderwearCo.,Ltd. | SharingCompany |
OthernoteNone
5.Relatedtransactions.
（1）RelatedtransactionsonpurchasinggoodsandreceivingservicesAcquisitionofgoodsandreceptionoflaborservice
InRMB
| Relatedparties | Contentofrelatedtransaction | Amountofcurrentperiod | Amountofpreviousperiod | Overthetradinglimitornot? | Amountoflastperiod |
| HengmeiPhotoelectricCo.,Ltd. | Technicalservice | 0.00 | 0.00 | No | 1,415,263.58 |
| HengmeiPhotoelectricCo., | Polarized | 0.00 | 0.00 | No | 204,282,036.36 |
Relatedtransactionsonsalegoodsandreceivingservices
InRMB
Ltd.
Relatedparty
| Relatedparty | Content | Amountofcurrentperiod | Amountofpreviousperiod |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | Polarized | 1,441,975.42 | 1,485,995.60 |
| HengmeiPhotoelectricCo.,Ltd. | Polarized | 0.00 | 110,545,214.28 |
NoteNone
(2)Relatedtrusteeship/contractNotapplicable
(3)InformationofrelatedleaseNotapplicable
(4)Related-partyguaranteeRelatedguarantee
InRMB
| Guaranteedparty | Amount | Guaranteestartdate | Guaranteeenddate | Whethertheguaranteehasbeenfulfilled |
| SAPOphotoelectric | 409,127,400.00 | September8,2020 | No |
TheCompanyisthesecuredparty
Notapplicable
(5)Inter-banklendingofcapitalofrelatedparties：
InRMB
| Relatedparty | Amount | Startdate | Expiringdate | Note |
| Borrowingfund： | ||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 3,806,454.17 | July30,2019 | Theannuallendinginterestrateis0.30% | |
| Loaned | ||||
(6)Relatedpartyassettransferanddebtrestructuring
(7)Rewardsforthekeymanagementpersonnel
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Rewardsforthekeymanagementpersonnel | 11,152,800.00 | 9,175,000.00 |
(8)Otherrelatedtransactions
6.Receivablesandpayablesofrelatedparties
（1）Receivables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning | ||
| BalanceofBook | BalanceofBook | BalanceofBook | BaddebtProvision | ||
| Accountreceivable | ShenzhenTianmaMicroelectronicsCo.,Ltd. | 412,495.18 | 18,686.03 | 581,696.96 | 25,652.84 |
| Accountreceivable | HengmeiPhotoelectricCo.,Ltd. | 0.00 | 0.00 | 20,879,229.37 | 920,774.02 |
| OtherAccountreceivable | AnhuiHuapengTextileCompany | 0.00 | 0.00 | 1,800,000.00 | 1,800,000.00 |
| OtherAccountreceivable | ShenzhenDailishiUnderwearCo.,Ltd. | 1,100,000.00 | 55,000.00 | 0.00 | 0.00 |
（2）Payables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning |
| Accountpayable | HengmeiPhotoelectricCo.,Ltd. | 170,977.53 | 35,787,643.44 |
| Otherpayable | ShenzhenXinfangKnittingCo.,Ltd. | 244,789.85 | 244,789.85 |
| Otherpayable | ShenzhenChanglianfa | 2,023,699.95 | 1,580,949.95 |
| Printing&dyeingCo.,Ltd. | |||
| Otherpayable | YehuiInternationalCo.,Ltd. | 1,124,656.60 | 1,143,127.81 |
| Otherpayable | Shengtou（Hongkong）Co.,Ltd. | 315,000.00 | 315,000.00 |
| Otherpayable | ShenzhenGuanhuaPrinting&dyeingCo.,Ltd. | 3,806,454.17 | 3,811,240.92 |
7.RelatedpartycommitmentNone
8.OtherNoneXIII.Sharepayment
1.Overallsituationofsharepayment
√Applicable□Notapplicable
InRMB
| Totalamountofvariousequityinstrumentsgrantedbythecompanyduringthecurrentperiod | 0.00 |
| Totalamountofvariousequityinstrumentsthatthecompanyexercisesduringtheperiod | 0.00 |
| Totalamountofvariousequityinstrumentsthathaveexpiredinthecurrentperiod | 1,250,430.00 |
| Thescopeofexecutivepriceofthecompany’soutstandingshareoptionsattheendoftheperiodandtheremainingtermofthecontract | 0yuan，0year |
| Thescopeofexecutivepriceofthecompany’sotherequityinstrumentsattheendoftheperiodandtheremainingtermofthecontract | 5.73/yuan/share，1year |
OthernoteNote:OnDecember14,2017,thecompany's3rdExtraordinaryGeneralMeetingofShareholdersin2017passedtheProposalon‘ShenzhenTextile(Group)Co.,Ltd.2017RestrictedStockIncentivePlan(Draft)andAbstract’;onDecember14,2017,theboardofdirectorsofthecompanyreviewedandpassedtheProposalonAdjustingtheListofIncentiveObjectsofRestrictedStockIncentivePlansandtheNumberofEquityGrantedof2017,andtheProposalonGrantingRestrictiveSharestoIncentiveObjects.OnDecember14,2017,thecompanygranted4,752,300restrictedsharestotheincentiveobject,thegrantpricewas5.73yuan/share.Restrictionsshallbeliftedattherateof40%,30%,and30%respectivelyafter12months,24months,and36monthsafterthefirsttransactiondateof24monthsafterthecompletionoftheregistration.Thecompany'sperformanceassessmentfortherestrictedsharesgrantedeachperiodisasfollows:
| Restrictionliftingperiod | Performanceassessmentgoals |
| Thefirstrestrictionliftingperiod | In2018,theearningspershareshallbenolessthan0.07yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2018comparedwith2016isnotlessthan70%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2018,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnolessthan70%. |
| Thesecondrestrictionliftingperiod | In2019,earningspershareshallbenolessthan0.08yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2019comparedwith2016isnotlessthan130%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2019,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnotlessthan75%. |
| Thethirdrestrictionliftingperiod | In2020,theearningspershareshallbenolessthan0.20yuan,andshallnotbelowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2020isnotlessthan200%comparedto2016,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry.In2020,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenuewillbenolessthan80%. |
Note:Earningspershare=netprofit/totalcapitalstockattributabletocommonshareholdersoftheCompanyupondeductionofnon-recurringprofitandloss.OnFebruary2,2021,thecompanyheldthefirstextraordinarygeneralmeetingofshareholdersin2021toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",agreeingtothecompany'stotalholdingsof1originalincentiveobjectwhoresignedduetopersonalreasons7,950restrictedstockswererepurchasedandcancelledatarepurchasepriceof5.73yuan/share;ItwasagreedthattheCompanyrepurchaseandcancel6,000restrictedsharesheldbyoneoriginalincentiveobjectwhohadfailedtomeettheincentiveconditionsduetoretirementat6.23yuan/share.
OnApril7,2021,thecompanyheldthe2020AnnualGeneralMeetingofShareholderstoreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedthatthecompanywouldrepurchaseandcancel1,236,480restrictedstocksheldby102incentiveobjectsinthethirdissuethatdidnotmeettheconditionsforliftingtherestrictionsonsales,andtherepurchasepricewasRMB6.26pershare.
2.Equity-settledshare-basedpayment
√Applicable□Notapplicable
InRMB
| Determinationmethodofthefairvalueofequityinstrumentsonthegrantdate | Theclosingpriceofthecompany'sstockongrantdate-grantprice |
| Determinationbasisofthenumberofvestingequityinstruments | Oneachbalancesheetdateofthewaitingperiod,itisdeterminedbasedonthelatestinformationsuchasthechangeinthenumberofpeoplethatcanbereleasedfromrestrictionsandthecompletionofperformanceindicators |
| Reasonsforthesignificantdifferencebetweenthecurrentperiodestimateandthepreviousperiodestimate | None |
| Equity-settledshare-basedpaymentisincludedinthe | 0.00 |
| accumulatedamountofcapitalreserve | |
| Totalamountoffeesconfirmedbyequity-settledshare-basedpaymentsinthecurrentperiod | 0.00 |
OthernoteNone
3.TheStockpaymentsettledbycash
□Applicable√Notapplicable
4.ModificationandterminationofthestockpaymentNone
5.OtherNoneXIV.Commitments
1.SignificantcommitmentsSignificantcommitmentsatbalancesheetdateAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
2.Contingency
(1)SignificantcontingencyatbalancesheetdateAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
(2)TheCompanyhavenosignificantcontingencytodisclose,alsoshouldbestatedNone
3.OtherNoneXV.Eventsafterbalancesheetdate
1.SignificanteventshadnotadjustedNotapplicable
2.ProfitdistributionNotapplicable
3.SalesreturnNone
4.NotesofothersignificanteventsAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.XVI.Othersignificantevents
1.Correctionoftheaccountingerrorsinthepreviousperiod
(1)Retroactiverestatement
(2)Prospectiveapplication
2.LiabilitiesrestructuringNone
3.Replacementofassets
(1)Non-monetaryassetsexchangeNone
(2)OtherassetsexchangeNone
4.PensionplanNone
5.DiscontinuingoperationNone
6.Segmentinformation
(1)BasisfordeterminingthereportingsegmentsandaccountingpolicyTheCompanydeterminesitsoperatingdivisionsbasedonitsinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.Basedontheoperatingdivisions,theCompanyconfirmsfourreportingdivisions,namelytextiles,polarizer,tradeandpropertyleasing.Divisionalreportinginformationisdisclosedinaccordancewiththeaccountingpoliciesandmeasurementstandardsadoptedbyeachdivisionwhenreportingtothemanagement.Thesemeasurementbasisareconsistentwiththeaccountingandmeasurementbasisforfinancialstatementpreparation.
（2）Financialinformationofthereportdivision
InRMB
| Items | Polarizer | Propertyleaseandother | Textile | Trade | Offsetbetweendivisions | Total |
| Operatingincome | 2,117,717,019.48 | 129,445,842.10 | 55,169,650.79 | -8,584,620.31 | 2,293,747,892.06 | |
| Including:revenuefromforeigntransaction | 2,117,717,019.48 | 121,098,294.00 | 54,932,578.58 | 0.00 | 2,293,747,892.06 | |
| Revenuefrominter-segmenttransactions | 0.00 | 8,347,548.10 | 237,072.21 | -8,584,620.31 | -8,584,620.31 | |
| Including:revenuefrommainbusiness | 2,099,489,550.77 | 114,363,911.23 | 55,169,650.79 | -3,032,482.89 | 2,265,990,629.90 | |
| Operatingcost | 1,828,378,235.90 | 38,998,238.06 | 48,686,874.43 | -7,543,935.11 | 1,908,519,413.28 | |
| Including:mainbusinesscost | 1,828,378,235.90 | 26,709,964.52 | 48,686,874.43 | -3,527,746.06 | 1,900,247,328.79 | |
| Operatingprofit | 28,041,538.58 | 53,280,168.22 | 815,378.80 | -15,576,656.93 | 73,511.20 | 66,633,939.87 |
| Totalassets | 4,204,357,864.87 | 3,296,896,012.57 | 46,233,785.98 | -2,050,840,555.59 | 5,496,647,107.83 | |
| Totalindebtedness | 1,380,985,834.98 | 211,828,635.06 | 27,995,367.47 | -87,991,976.75 | 1,532,817,860.76 |
(3)Incasethereisnoreportingsegmentorthetotalassetsandliabilitiesofthereportingsegmentscannotbedisclosed,explainthereasonNone
（4）OthernoteNone
7.Othersignificanttransactionsandmattersthatmayaffectinvestors'decisionmakingNone
8.OtherNoneXVII.NotesofmainitemsinthefinancialstatementsoftheParentCompany
1.Accountsreceivable
(1)Accountsreceivableclassifiedbycategory
InRMB
| Category | Amountinyear-end | Amountinyear-beginning | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Including： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 8,353,590.78 | 100.00% | 417,679.54 | 5.00% | 7,935,911.24 | 1,538,316.00 | 100.00% | 76,915.80 | 5.00% | 1,461,400.20 |
| Including： | ||||||||||
| Total | 8,353,590.78 | 100.00% | 417,679.54 | 5.00% | 7,935,911.24 | 1,538,316.00 | 100.00% | 76,915.80 | 5.00% | 1,461,400.20 |
Accrualofbaddebtprovisionbysingleitem
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
Accrualofbaddebtprovisionbyportfolio:417,679.54yuan
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Within1year | 6,815,274.78 | 340,763.74 | 5.00% |
| 1-2years | 1,538,316.00 | 76,915.80 | 5.00% |
| Total | 8,353,590.78 | 417,679.54 | -- |
Accrualofbaddebtprovisionbyportfolio
InRMB
RMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 6,815,274.78 |
| 1-2years | 1,538,316.00 |
| 2-3years | 0.00 |
| Over3years | 0.00 |
| 3-4years | 0.00 |
| Total | 8,353,590.78 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| 76,915.80 | 340,763.74 | 417,679.54 | ||||
| Total | 76,915.80 | 340,763.74 | 417,679.54 | |||
| Total | 76,915.80 | 66,116.12 | 143,031.92 | |||
Wherethesignificantamountofthereserveforbaddebtrecoveredorreversed:
InRMB
| Name | Amount | Mode |
None
(3)Theactualwrite-offaccountsreceivable
InRMB
| Items | Amount |
（4）Theendingbalanceofotherreceivablesowedbytheimputationofthetopfiveparties
InRMB
| Name | Closingbalance | Proportion% | BalanceofBaddebtprovision |
| ShenzhenGuangshengDevelopmentIndustryCo.,Ltd. | 5,610,352.81 | 67.16% | 280,517.64 |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,485,076.00 | 29.75% | 124,253.80 |
| ShenzhenYuehaoHotelManagementCo.,Ltd. | 245,621.97 | 2.94% | 12,281.10 |
| CaoCheng | 9,300.00 | 0.11% | 465.00 |
| MaYue | 3,240.00 | 0.04% | 162.00 |
| Total | 8,353,590.78 | 100.00% | -- |
(5)AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone
2.Otheraccountsreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Otheraccountsreceivable | 14,383,631.68 | 7,450,934.40 |
| Total | 14,383,631.68 | 7,450,934.40 |
（1）Interestreceivable1）Categoryofinterestreceivable
InRMB
| Items | Closingbalance | Openingbalance |
2)Significantoverdueinterest
InRMB
| Items) | Balanceinyear-end | Aging | Reasonsfornon-recovery | Whetherornottheimpairmentandthebasisforitsdetermination |
Othernote：
3）Bad-debtprovision
√Applicable□Notapplicable
InRMB
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2021Incurrent | —— | —— | —— | —— |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
(2)Dividendreceivable
1)CategoryofDividendreceivable
(2)Dividendreceivable
1)CategoryofDividendreceivable
InRMB
| Items | Closingbalance | Openingbalance |
2)Significantdividendsreceivablewithageexceeding1year
InRMB
| Items) | Balanceinyear-end | Aging | Reasonsfornon-recovery | Whetherornottheimpairmentandthebasisforits |
3）Bad-debtprovision
√Applicable□Notapplicable
InRMB
determinationBaddebtprovision
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2021 | 1,018,014.39 | 15,111,246.32 | 16,129,260.71 | |
| BalanceasatJanuary1,2021Incurrent | —— | —— | —— | —— |
| Provisioninthecurrentperiod | 369,750.00 | 369,750.00 | ||
| BalanceasatDecember31,2021 | 1,387,764.39 | 15,111,246.32 | 16,499,010.71 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableOthernote：
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassifiedbythenatureofaccounts
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| Otherreceivable | 14,383,631.68 | 7,450,934.40 |
| Total | 14,383,631.68 | 7,450,934.40 |
2）Bad-debtprovision
InRMB
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2021 | 1,018,014.40 | 15,111,246.32 | 16,129,260.71 | |
| BalanceasatJanuary1,2021Incurrent | —— | —— | —— | —— |
| Provisioninthecurrent | 369,750.00 | 369,750.00 |
| period | ||||
| BalanceasatDecember31,2021 | 1,387,764.39 | 15,111,246.32 | 16,499,010.71 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 15,603,247.29 |
| 1-2years | 0.00 |
| 2-3years | 234,716.25 |
| Over3years | 15,044,678.85 |
| 3-4years | 328,819.35 |
| 4-5years | 454,759.77 |
| Over5years | 14,261,099.73 |
| Total | 30,882,642.39 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Internalcurrentaccount | 877,680.00 | 365,000.00 | 1,242,680.00 | |||
| Deposit | 5,000.00 | 5,000.00 | ||||
| Other | 1,260.00 | 122.36 | 1,382.36 | |||
| Unitaccount | 15,245,320.71 | 4,627.64 | 15,249,948.35 | |||
| Total | 16,129,260.71 | 369,750.00 | 16,499,010.71 | |||
Wherethesignificantamountoftheprovisionforbaddebtrecoveredorreversed
InRMB
| Name | Amount | Mode |
4)Accountsreceivableactuallywrittenoffinthereportingperiod
InRMB
| Items | Amount |
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:
InRMB
| Name | Nature | Amount | Reason | Verificationproceduresperformed | Whetherthemoneyisgeneratedbyrelatedpartytransactions |
(5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Internalcurrentaccount | 14,475,600.00 | 1-3years | 46.87% | 1,242,680.00 |
| JiangxiXuanliThreadCo.,Ltd. | Unitaccount | 11,389,044.60 | Over5years | 36.88% | 11,389,044.60 |
| AnhuiHuapengTextileCompany | Unitaccount | 1,800,000.00 | Over5years | 5.83% | 1,800,000.00 |
| ShenzhenDailisiUnderwearCo.,Ltd | Unitaccount | 1,100,000.00 | Within1year | 3.56% | 55,000.00 |
| ShenzhenXieliAutomobileRepairPlant | Unitaccount | 1,018,295.37 | 2-5years | 3.30% | 1,018,295.37 |
| Total | -- | 29,782,939.97 | -- | 96.44% | 15,505,019.97 |
6)Accountsreceivableinvolvedwithgovernmentsubsidies
InRMB
| Name | Nameofthegovernmentsubsidyproject | Year-endbalance | Aging | Time,amountandbasisoftheexpectedcollection |
Thecompanyhasnogovernmentsubsidiesreceivable.
7)Otheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
(8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableOthernote：
3.Long-termequityinvestment
InRMB
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Investmentsinsubsidiaries | 1,972,630,835.39 | 16,582,629.30 | 1,956,048,206.09 | 1,972,630,835.39 | 16,582,629.30 | 1,956,048,206.09 |
| Investmentsinassociatesandjointventures | 133,022,325.77 | 0.00 | 133,022,325.77 | 147,929,137.23 | 0.00 | 147,929,137.23 |
| Total | 2,105,653,161.16 | 16,582,629.30 | 2,089,070,531.86 | 2,120,559,972.62 | 16,582,629.30 | 2,103,977,343.32 |
（1）Investmenttothesubsidiary
InRMB
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||
| Addinvestment | Decreasedinvestment | Withdrawnimpairmentprovision | Other | ||||
| SAPOPhotoelectric | 1,910,247,781.94 | 1,910,247,781.94 | 14,415,288.09 | ||||
| ShenzhenLisiIndustrialDevelopmentCo.,Ltd. | 8,073,388.25 | 8,073,388.25 | |||||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 14,696,874.34 | 14,696,874.34 | 2,167,341.21 | ||||
| ShenzhenHuaqiangHotel | 15,489,351.08 | 15,489,351.08 | |||||
| ShenzhenShenfangRealEstateManagementCo.,Ltd. | 1,713,186.55 | 1,713,186.55 | ||
| ShenzhenShenfangSungangRealEstateManagementCo.,Ltd. | 5,827,623.93 | 5,827,623.93 | ||
| Total | 1,956,048,206.09 | 1,956,048,206.09 | 16,582,629.30 |
（2）Investmenttojointventuresandassociatedenterprises
InRMB
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Addinvestment | Decreasedinvestment | Gain/lossofInvestment | Adjustmentofothercomprehensiveincome | Otherequitychanges | Declarationofcashdividendsorprofit | Withdrawnimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,797,023.14 | 10,797,023.14 | |||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 127,906,165.17 | 308,060.37 | 128,214,225.54 | ||||||||
| Subtotal | 138,703,188.3 | 10,797,023.14 | 308,060.37 | 128,214,225.5 | |||||||
| 1 | 4 | ||||||||
| II.Associatedenterprises | |||||||||
| ShenzhenChanglianfaPrintinganddyeingCompany | 2,706,262.38 | 265,940.59 | 2,972,202.97 | ||||||
| JordanGarnentFactory | |||||||||
| YehuiInternationalCo.,Ltd. | 6,519,686.54 | -540,016.30 | -199,063.73 | 3,944,709.25 | 1,835,897.26 | ||||
| Subtotal | 9,225,948.92 | -274,075.71 | -199,063.73 | 3,944,709.25 | 4,808,100.23 | ||||
| Total | 147,929,137.23 | 133,022,325.77 | 0.00 | ||||||
（3）Othernote
4.BusinessincomeandBusinesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| IncomefromMainBusiness | 74,272,555.42 | 7,660,814.11 | 57,649,817.53 | 7,019,203.76 |
| OtherBusinessincome | 3,887,130.77 | 3,887,130.77 | 3,647,070.68 | 3,647,070.68 |
| Total | 78,159,686.19 | 11,547,944.88 | 61,296,888.21 | 10,666,274.44 |
Income-relatedinformation:
InRMB
| Type | Division1 | Division2 | Total | |
| Ofwhich： | ||||
| Ofwhich： |
| Ofwhich： |
| Ofwhich： |
| Ofwhich： |
| Ofwhich： |
| Ofwhich： |
Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:NoneAttheendofthereportingperiod,theincomeamountcorrespondingtotheperformanceobligationsthathavebeensignedbutnotfulfilledorcompletedis0.00yuan.Amongthem,RMB0.00isexpectedtoberecognizedasrevenuein0year,RMB0.00isexpectedtoberecognizedasrevenuein0year,andRMB0.00isexpectedtoberecognizedasrevenuein0year.Othernote:None
5.Investmentincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Incomefromlong-termequityinvestmentmeasuredbyadoptingtheCostmethod | 18,304,138.91 | |
| Incomefromlong-termequityinvestmentmeasuredbyadoptingtheequitymethod | 33,984.66 | -3,446,613.86 |
| Investmentincomefromthedisposaloflong-termequityinvestment | 20,779.93 | |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 1,659,743.65 | 1,995,042.32 |
| Structureddepositinterest | 4,036,968.43 | 14,919,678.58 |
| Netmonetarygains | 14,657,621.81 | 3,884,233.70 |
| Total | 20,409,098.48 | 35,656,479.65 |
6.OtherXVIII.Supplementinformation
1.Particularsaboutcurrentnon-recurringgainsandloss
√Applicable□Notapplicable
InRMB
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss | -961,982.35 |
| Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 19,643,379.33 | Otherbenefitsofgovernmentsubsidiesthatareconfirmedrelatedtothemainbusiness. |
| Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest. | 989,313.04 | |
| Othernon-businessincomeandexpendituresotherthantheabove | 19,964,046.87 | |
| Less:Influencedamountofincometax | 6,025,891.12 | |
| Influencedamountofminorshareholders’equity(aftertax) | 13,096,494.74 | |
| Total | 20,512,371.03 | -- |
Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition
□Applicable√NotapplicableExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-ExtraordinaryGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.Returnonnetassetandearningspershare
| Profitofreportperiod | Weightedaveragereturnsequity(%) | Earningspershare | |
| Basicearningspershare(RMB/share） | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletotheCommonstockshareholdersofCompany. | 2.24% | 0.12 | 0.12 |
| NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss. | 1.46% | 0.08 | 0.08 |
3.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
（1）SimultaneouslypursuanttobothChineseaccountingstandardsandinternationalaccountingstandardsdisclosedinthefinancialreportsofdifferencesinnetincomeandnetassets.
□Applicable□√Notapplicable
（2）DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable□√Notapplicable
(3)Explanationofthereasonsforthedifferencesinaccountingdataunderdomesticandforeignaccountingstandards.Ifthedatathathasbeenauditedbyanoverseasauditinstitutionisadjustedfordifferences,thenameoftheoverseasinstitutionshouldbeindicatedNone
4.OtherNone
TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd.
March17,2021