深纺织B：2022年年度报告(英文版)

ShenzhenTextile(Holdings)Co.,Ltd.

2022AnnualReport

April2023

I.ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors，theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.Mr.YinKefei,TheCompanyleader,Chieffinancialofficerandthepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisannualreport.Inadditiontothefollowingdirectors,otherdirectorspersonallyattendedtheBoardmeetingatwhichtheAnnualReportwasconsidered.

Namesofdirectorsnotpresentinperson	Positionsofdirectorsnotpresentinperson	Reasonsfornotattendingthemeetinginperson	Nameofprincipal
WangChuan	Director	Goingonbusinesstrip	NingMaozai
SunMinghui	Director	Goingonbusinesstrip	ZhuMeizhu
WangKai	Independentdirector	Duetowork	CaiYuanqing

Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,Investorsandrelatedpersonsshallkeepsufficientriskawareness,andshallunderstandthedifferencesbetweenplans,forecastsandcommitments,andremindinvestorsofinvestmentrisks.Thecompanyhasthemacroeconomicrisks,marketcompetitionrisksandrawmaterialrisks.Investorsareadvisedtopayattentiontoinvestmentrisks.Fordetails,pleaserefertothepossibleriskfactorsthatthecompanymayfaceintheXI"RisksfacingtheCompanyandcountermeasures"intheSectionIII"ManagementDiscussion&Analysis".Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:

Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:basedon506,521,849shares,acashdividendof0.60yuan(taxincluded)willbedistributedtoallshareholdersforevery10shares,and0shares(taxincluded)willbegivenasbonusshares.Thecapitalreservewillnotbeconvertedintosharecapital.ThisReporthasbeenpreparedinbothChineseandEnglish.Incaseofanydiscrepancy,theChineseversionshallprevail.

TableofContents

I.ImportantNotice,TableofcontentsandDefinitions.II.CompanyProfile&FinancialHighlightsIII.ManagementDiscussion&AnalysisIV.CorporateGovernanceV.Environmental&SocialResponsibilityVI.ImportantEventsVII.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVIII.SituationofthePreferredSharesIX.CorporateBondX.FinancialReport

Documentsavailableforinspection

1.Accountingstatementsbearingthesignaturesandsealsofthecompany'slegalrepresentative,generalmanager,chieffinancialofficer,andpersoninchargeoftheaccountingagency.

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.
HengmeiPhotoelectric	Refersto	HengmeiPhotoelectricCo.,Ltd.
QimeiMaterial	Refersto	QimeiMaterialTechnologyInvestmentCo.LTD
HaoshengDanyang	Refersto	Haosheng(Danyang)InvestmentManagementCo.LTD
DanyangNuoyan	Refersto	DanyangNuoyanTianxinInvestmentPartnership(limitedpartnership)
XiamenNuoyan	Refersto	XiamenNuoyanPrivateEquityFundManagementCo.LTD
FuzhouXintou	Refersto	FuzhouNewAreaDevelopmentandInvestmentGroupCo.LTD
HefeiBeicheng	Refersto	HefeiBeichengNo.2PhotoelectricIndustryInvestmentPartnership(limitedpartnership)
HangzhouRencheng	Refersto	HangzhouRenchengTradingPartnership(limitedpartnership)
XingheTechnology	Refersto	ShenzhenXingheHardTechnologyPrivateEquityInvestmentFundPartnership(limitedpartnership)
lishuiHuahui	Refersto	LishuiHuahuiEquityInvestmentPartnership(limitedpartnership)
HuzhouPainuo	Refersto	HuzhouPainuohuicaiEquityInvestmentPartnership(limitedpartnership)
LishuiTengbei	Refersto	LishuiTengbeimingChengEquityInvestmentPartnership(limitedPartnership)
FuzhouInvestment	Refersto	FuzhouInvestmentManagementCo.,LTD
XiamenZhifeng	Refersto	XiamenZhifengEquityInvestmentPartnership(limitedpartnership)
JiaxingPainuo	Refersto	JiaxingPainuoXiancaiEquityInvestmentPartnership(limitedpartnership)
HuzhouZhekuang	Refersto	HuzhouZhekuangEquityInvestmentPartnership(limitedpartnership)
GuangdongXingzhi	Refersto	GuangdongXingzhiVentureCapitalPartnership(limitedpartnership)
GuangzhouBoyue	Refersto	GuangzhouBoYuejinVentureCapitalPartnership(limitedpartnership)
JinxinInvestment	Refersto	LanxiJinxinInvestmentManagementCo.,Ltd.
ChangxingJunying	Refersto	ChangxingJunyingEqkuityInvestmentPartnership（LP）
HuaijiInvestment	Refersto	HangzhouHuaijiInvestmentManagementCo.,Ltd.
JinhangInvestment	Refersto	HangzhouJinhangInvestmentFundPartnership（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	2022AnnualReport

II.CompanyProfile&FinancialHighlights

1.CompanyProfile

Stockabbreviation	ShenTextileA,ShenTextileB	Stockcode	000045、200045
ModifiedstockID(ifany)	No
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
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
E-mail	[e-mail]

2.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
E-mail	[e-mail]	[e-mail]

3.Informationdisclosureandplaced

NewspapersselectedbytheCompanyforinformationdisclosure	SecuritiesTimes,ChinaSecurities,ShanghaiSecuritiesDailyandHongkongCommercialDaily.
InternetwebsitedesignatedbyCSRCforpublishingtheAnnualreportoftheCompany	www.cninfo.com.cn
TheplacewheretheAnnualreportispreparedandplaced	OfficeoftheBoardofdirectors

4.ChangesinRegistration

Unifiedsocialcreditcode

91440300192173749Y

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);department

stores,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.

5.OtherRelevantInformationCPAsengaged

NameoftheCPAs	DeloitteToucheTohmatsuCPALtd.(specialgeneralpartnership)
Officeaddress：	30/F,No.222,YananEastRoad,QingpuDistrict,Shanghai
NamesoftheCertifiedPublicAccountantsasthesignatories	XuXiangzhao,YaoMing

ThesponsorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod.

□Applicable√NotapplicableTheFinancialadvisorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod

□Applicable√Notapplicable

6.SummaryofAccountingdataandFinancialindexWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

√Yes□NoRetroactiveadjustmentorrestatementofcausesAccountingpolicychangeandCorrectionofaccountingerrors

	2022	2021		ChangesofthisperiodoversameperiodofLastyear(%)	2020
		Beforeadjustment	Afteradjustment	Afteradjustment	Beforeadjustment	Afteradjustment
Operatingincome（Yuan）	2,837,988,264.36	2,293,747,892.06	2,330,061,681.00	21.80%	2,108,964,687.80	2,108,964,687.80
Netprofitattributabletotheshareholdersofthelistedcompany（Yuan）	73,309,182.94	61,162,384.25	55,733,468.82	31.54%	37,267,995.74	37,267,995.74
Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany（Yuan）	54,148,057.50	40,650,013.22	35,221,097.79	53.74%	18,084,607.04	18,084,607.04
Cashflowgeneratedbybusinessoperation,net（Yuan）	490,238,550.60	-4,436,980.35	-4,436,980.35	11,148.92%	1,930,932.76	1,930,932.76
Basicearningpershare(Yuan/Share)	0.14	0.12	0.11	27.27%	0.07	0.07
Dilutedgainspershare(Yuan/Share)	0.14	0.12	0.11	27.27%	0.07	0.07
WeightedaverageROE(%)	2.59%	2.19%	2.00%	0.59%	1.36%	1.36%

	Endof2022	Endof2021		Changedoverlastyear（％）	Endof2020
		Beforeadjustment	Afteradjustment	Afteradjustment	Beforeadjustment	Afteradjustment
Grossassets（Yuan）	5,617,137,367.90	5,496,647,107.83	5,563,539,326.16	0.96%	4,969,547,552.23	4,969,547,552.23
Netassetsattributabletoshareholdersofthelistedcompany（Yuan）	2,849,264,555.21	2,816,795,889.89	2,811,366,974.46	1.35%	2,766,234,174.39	2,766,234,174.39

Reasonsforchangesinaccountingpolicyandcorrectionofaccountingerrors

（1）ReasonsforchangesinaccountingpolicyOnDecember30,2021,theMinistryofFinanceissuedtheNo.15InterpretationofAccountingStandardsforBusinessEnterprises(hereinafterreferredtoas"No.15Interpretation"),whichstandardizestheaccountingtreatmentofproductsorby-productsproducedbyenterprisesbeforetheyreachtheintendedstateofuseorduringtheresearchanddevelopmentprocess.TheNo.15Interpretationstipulatesthatifanenterprisesellsproductsorby-productsproducedbeforethefixedassetsreachtheintendedstateofuseorduringtheR&Dprocess,itshallseparatelyaccountfortheincomeandcostsrelatedtothetrialoperationsalesinaccordancewiththerevenuestandardandthe"No.1AccountingStandardforBusinessEnterprises-Inventory",andincludethemintheprofitorlossoftheperiod,andshallnotusethenetamountoftheincomerelatedtothetrialoperationsalesafteroffsettingthecoststowritedownfixedassetsorR&Dexpenses.Meanwhile,theenterpriseshallseparatelydiscloseinthenotestherelevantrevenueandcostamountsofthetrialoperationsales,thespecificpresentationitems,andtheimportantaccountingestimatesusedindeterminingthecostsrelatedtothetrialoperationsales.TheprovisionscameintoforceonJanuary1,2022,thereforetheretrospectiveadjustmentsshallbemadefortrialsalesthatoccurredbetweenthebeginningoftheearliestperiodofpresentationofthefinancialstatementandJanuary1,2022.TheCompanyadoptstheretroactiveadjustmentmethodforaccountingtreatmentandrestatesthefinancialstatementsofcomparableyears.Forspecificimpacts,see"SectionXFinancialReport(IV)ChangesinImportantAccountingPoliciesandAccountingEstimatesandCorrectionofPriorPeriodErrors".

（2）CorrectionofaccountingerrorsShenzhenShengboOptoelectronicsTechnologyCo.,Ltd.(hereinafterreferredtoas"ShengboOptoelectronics"),asubsidiaryofthecompany,foundsignificantpriorperioderrorsinpreviousyearsthisyear.Inaccordancewiththerelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.28-ChangesinAccountingPoliciesandAccountingEstimatesandCorrectionofErrors",thecompanyhascorrectedrelevanterrormattersandrestatedthe2021consolidatedfinancialstatements.Fordetails,see"SectionXFinancialReports-(IV)ChangesinSignificantAccountingPoliciesandAccountingEstimatesandCorrectionofPriorPeriodErrors".Thelowerofthecompany'snetprofitbeforeandafterdeductingnonrecurringgainsandlossesinthelastthreeaccountingyearsisnegative,andtheauditreportofthelatestyearindicatesthatthereisuncertaintyinthecompany'sabilitytocontinueasagoingconcern

□Yes√NoThelowerofthenetprofitbeforeandafterthedeductionofthenon-recurringgainsandlossesisnegative.

□Yes√No

7.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards

1.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards.

□Applicable√NotapplicableNodifference.

2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.

□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.

8.MainFinancialIndexbyQuarters

InRMB

	Firstquarter	Secondquarter	Thirdquarter	Fourthquarter
Operatingincome	670,551,882.04	774,585,427.05	676,901,015.17	715,949,940.10
Netprofitattributabletotheshareholdersofthelistedcompany	17,625,745.18	24,807,779.92	14,115,950.48	16,759,707.36
Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany	15,102,181.63	19,868,793.84	9,730,544.28	9,446,537.75
NetCashflowgeneratedbybusinessoperation	-65,966,923.49	145,405,158.08	36,463,548.86	374,336,767.15

Whethersignificantvariancesexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedbytheCompany.

□Yes√No

9.Itemsandamountofnon-currentgainsandlosses

√Applicable□Notapplicable

InRMB

Items	Amount(2022)	Amount(2021)	Amount(2020)	Notes
Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade)	31,264.60	-961,982.35	273,229.58
Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)	26,350,210.89	19,643,379.33	29,506,252.69
Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest.		989,313.04
Othernon-businessincomeandexpendituresotherthantheabove	7,516,025.10	19,964,046.87	1,310,556.26
Less:Influencedamountofincometax	5,589,310.62	6,025,891.12	53,313.37
Influencedamountofminorshareholders’equity(aftertax)	9,147,064.53	13,096,494.74	11,853,336.46

Total

19,161,125.44

20,512,371.03

19,183,388.70

--

Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition

□Applicable√NotapplicableNoneFortheCompany’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.In2022,duetothecomplexandvolatilesituationathomeandabroad,theongoingwarbetweenRussiaandUkraine,andthecombinationofglobalinflation,thepanelindustryexperiencedawaveofcontinuousdownwardrevision.Inthesecondhalfoftheyear,inthepanelfactorycontinuestoadjustthedynamic,inventorystrategy,thepanelmarketbegantoimproveinthefourthquarter,andisexpectedtofurtherrecoverin2023.II.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod

1.Thecompany'smainbusinessThecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.Duringthereportingperiod,theCompany'smainbusinesshasnotchangedsignificantly.First,theCompanycontinuedtooptimizetheproductstructure.Underthebackgroundofthesignificantreductioninproductionbyterminalandpanelcustomersin2022,itadoptedtherouteofproductdifferentiation,optimizedthecustomerstructure,improvedtheabilitytoresistrisks,implementedthe"Productionutilizationguarantee"policy,andracedtoseizethemarketshare;Second,itsparednoefforttoimplementtheproductionandoperationofLine7,focusedonimprovingproductioncapacity,yieldandmanagementlevel,thushelpedtheCompany'soverallbusinessperformancetobeimproved;Thethirdwastocontinuetopromoteleanmanagement,strictlycontrolmanufacturingcosts,reducematerialloss,strengthenmaterialrecycling,andreducecostsandincreaseefficiencyinanall-roundway;Thefourthwastostrengthentheinnovationdrive,createdifferentiatedcompetitiveadvantages,focusonpromotingtheconstructionofSAPO'sR&Dmanagementsystem,createamarket-orientedinnovationmechanism,andstrengthenthetechnicalresearch;Fifth,it’stofocusonthesecurityofrawmaterialsupplychainandtheriskofpriceincreasesofchemicalrawmaterials,andacceleratetheevaluationanduseofchemicalalternativerawmaterials;Sixth,Thecompanyhasovercometheadverse

effectstocompletetheprojectconstruction,activelyfulfilledsocialresponsibilities,andformulatedanimplementationplanforrentreductionoftheCompany'sanditswholly-ownedenterprises’self-ownpropertiesbasedonactualbusinessconditions,thustobridgeoverdifficultieswithmarketentities;Theseventhwastopromotethemajorassetrestructuringmatter,which’splannedtopurchasealltheequityorthecontrollingstakeofHengmeiOptoelectronicsbyissuingsharesandpayingcash,andmeanwhileraisesupportingfunds,thustocoordinatesystemresources,makeupforshortcomings,andenhancethecorecompetitivenessoftheCompany.

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'sbusinessmodelThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win.

4.MajorfactorsfordrivingtheCompany'sperformanceReferto"III.Analysisoncorecompetitiveness"inthissectionfordetails.

5.MarketpositionofcompanyproductsCurrently,theCompanyisoneofthemajorR&D,productionandsalesenterprisesofpolarizersinChina,andistheleadingenterpriseinthedomesticpolarizerindustry.TheCompanymainlyfocusesonmediumandlarge-sizedpolarizerproducts,andmeanwhilehastheproductioncapacityofmulti-sizeandmulti-seriesproducts.

Inthefuture,theCompanywillfurtheradjustandoptimizetheproductstructureandcustomerstructure,improvetheinternalmanagementlevel,optimizeandupgradetheproductiontechnologylevel,improvetheproductionefficiencyandproductquality,broadentheprocurementchannels,reducethe

productioncostandconsolidate;Ontheotherhand,theCompanypromotedtheworkrelatedtothemajorassetrestructuring,realizedthestrongallianceinthepolarizerindustry,rapidlyincreasedtheproductionscaleofpolarizers,optimizedtheCompany'sindustrialchainlayoutinthepolarizerindustry,enhancedthetechnicalreserves,andfurtherimprovedtheCompany'scorecompetitiveness.

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,SAPOPhotoelectricappliedfor127inventionpatentsandwasauthorizedwith100items(68validpatents),amongwhich:40domesticinventionpatents(18patentsgotauthorized,18validpatents);80domesticutilitymodelpatents(78patentsgotauthorized,48validpatents,);1overseasinventionpatent(0patentsgotauthorized);6overseasutilitymodelpatents(4patentsgotauthorized,2validpatents).Therewere4nationalstandardsand2industrialstandardsthatweredevelopedbythecompanyareapprovedandthenwillbeimplemented.willbeimplemented.SAPOPhotoelectrichasthreeinnovativeplatforms:GuangdongEngineeringTechnologyResearchCenter,ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratoryandShenzhenEnterpriseTechnologyCenter.ItfocusesontheR&DandindustrializationofLCDpolarizercoreproductiontechnology,thedevelopmentandindustrializationofOLEDpolarizernewproducts,andthelocalizationresearchofpolarizerrawmaterials,amongwhich,massproductionhasbeenachievedforOLEDTVpolarizerproductssuccessfully,fillingthedomesticgap.Byintroducingallkindsofprecisiontestequipment,itimproveslabtrialandpilot-scaletestmethods,andbuildsacollaborativeinnovationplatformforIndustry-University-Researchcooperation,toenhancetheR&Dlevelcomprehensively.

2.Talentsadvantages.TheCompanyemphasizestheindependentinnovation,establishesitsownR&Dmanagementsystem,andhasapolarizermanagementteamandaseniortechnicalpersonnelteamwithstrongtechnicalability,richexperienceandinternationalvision.Throughtheestablishmentoftechnicalcooperationwiththeworld'sleadingpolarizermanufacturerNittoElectricCo.,Ltd,ithaslearnedtheadvancedpolarizerproductionmanagementconcepts,andmeanwhileaccumulatedthetechnicalexperiencethroughindependentinnovation,improveditscorecompetitiveness,andgraduallyshapeditsownbrand,technology,operationmanagementandotheradvantages.In2022,theCompanycontinuedtodeepenthemarket-orientedreform,practicetheconceptof"Don'tracehorses",selectedagroupofmiddle-levelmanagementcadreswithstrongprofessionalabilityandhighdegreeofmarketizationfortheCompany,andfurtherstrengthenedthecorebackboneteam;Also,theCompanyImprovedthetalentgrowthchannelandthereservetalentechelonconstructionmechanism,regularlyorganizedandcarried

outtheemployeegradeevaluation,talent-poolworkandotherworktohelpemployeesgrowanddevelop;itimprovedtheassessmentincentivemechanism,andgaveaplaytotheincentiveandspurringroleofassessment;TheCompanyactivelyexploredthelong-termincentiveconstraintsoftheCompany'smanagementlayerandtheemployeebenefitrewarddistributionmechanism,theemployeestockownershipplan,etc.,thustobuildavaluedistributionmechanismforbenefitsharingandrisksharing.

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.Meanwhile,theCompanyusedthecapitalmarkettocarryoutassetrestructuring,implementedtheCompany'sdevelopmentstrategy,andseizedimportantmarketopportunitiestobecomebetterandstronger.

4.Qualityadvantages.TheCompanyalwaysadherestotheprincipleof"Meetingcustomerneedsandpursuingexcellentquality;Implementgreenmanufacturingandachievecontinuousimprovement"qualitypolicy,centeringontheproductqualitycontroltoenableitsproductscomparabletointernationalqualitystandards.TheCompanystrictlycontrolsproductperformanceindicators,standardizesincominginspectionstandards,andtakesqualityimprovementandconsumptionreductionasthestartingpointtoachievesimultaneousimprovementofoutputandquality;Ithasintroducedmodernmanagementsystem,passedtheISO9001qualitymanagementsystem,ISO14001environmentalmanagementsystem,ISO450001occupationalhealthandsafetymanagementsystem,QCO80000hazardoussubstancemanagementsystemandISO50001energymanagementsystemcertification;TheproductshavepassedCTItesting,anditcomplieswiththeenvironmentalprotectionrequirementsofRoHSdirective,andthewholeprocessisstandardizedfromrawmaterialsupply,manufacturing,marketingtocustomerservicetoensurethestabilityofproductquality.

5.Managementadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;

theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.Throughtheimplementationofthekeyworkmanagementlistof"SolidPartyBuilding+,LeanPromotesDevelopment",itusedtheleanmeanstoachievecontinuouscostreductionandefficiencyincrease;Throughtheimplementationofthe"AmoebaBusinessModel"projectandsegmentingsmallindependentaccountingunittoenablegrassrootsbackboneemployeescanparticipateinproductionandoperationactivities.

6.Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry,whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholeindustrychainofthepaneldisplayindustryclusterinShenzhen.Recognizedasanationalhigh-techenterprise,theCompanyisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational,provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,theCompanytightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherloweritsproductioncostandimproveitsproductcompetitiveness.IV.MainbusinessanalysisⅠ.GeneralTheyearof2022isakeyyearforthe"14thFive-YearPlan"andayearfortheCompanytocontinuetodeepenreformandimprovebusinessquality.Overthepastyear,inthefaceofsevereandcomplexeconomicsituation,theCompanyhasstrengthenedconfidence,unitedandworkedhardtoovercomedifficultiestogether,andnewprogresshasbeenmadeinpolarizerproductionandoperation,technologicalinnovation,leanmanagementofenterprises,improvementofinternalcontrolmechanism,potentialexploitationofpropertyleasing,andassetrevitalizationandwithdrawal,thuslayingasolidfoundationfortheCompany'sfurthertransformationanddevelopment.Duringthereportingperiod,theCompanyachievedanoperatingincomeof2.838billionyuan,aYOYincreaseof21.80%;Thetotalprofitwas44,348,800yuan,aYOYdecreaseof42.54%;Thenetprofitattributabletoshareholdersofthelistedcompanywas73,309,200yuan,aYOYincreaseof31.54%.TheCompany'stotalprofitdecreasedcomparedwiththesameperiodlastyear,whichwasmainlydueto:affectedbythecontinuedweakeningoftheLCDTVpanelmarket,thepriceofpolarizersgraduallydeclinedin2022,coupledwiththelargeconsumptionongroundoftheramp-upmassproductionofthenewlyput-intoproductionoftheultra-largesizeTVpolarizerindustryproject(Line7),theCompanymadeimpairmentprovisionsforinventoryandotherassetsbasedonexpectedfuturenetcashflows.TheCompany'soperatingincomeandnetprofitattributabletoshareholdersofthelistedcompanyincreasedcomparedwiththesameperiodofthepreviousyear,whichwasmainlydueto:First,thereleaseoftheCompany'sNo.7lineproductioncapacity,theoverallrevenuegrowthofpolarizerbusiness.Second,

basedontheGroup'sfutureprofitforecast,theCompanyconsideredthatitcangeneratesufficienttaxableincomeinthefutureperiodtotakeadvantageofdeductibletemporarydifferencesanddeductiblelossestomeettheconditionsforrecognitionofdeferredtaxassets,thereforeitrecognizedrelevantdeferredtaxassetswhilereducingincometaxexpense.Reviewofthecompany'skeyworkscarriedoutin2022asfollows:

(1)FurtherimprovementofpolarizerbusinessoperationcapabilityIn2022,First,theCompanyactivelyadjustedtheproductstructure,improvedthestructureofthemainproportionofsinglelargecustomer,enhancedtheanti-riskabilityoforders,implementedthepolicyof"productionutilizationguarantee",andseizedthemarketshare;Thesecondwastostrengthenproductionmanagement,formulateleanmanagementplans,continuouslyimproveproductioncapacityandyield,reducelosses,andensureorderdelivery;Third,itstrengthenedtheinnovationdrive,focusedonpromotingtheconstructionofSAPO'sR&Dmanagementsystem,createdamarket-orientedinnovationmechanism,strengthenedthetechnicalresearch,andbuiltthedifferentiatedcompetitiveadvantages;Fourth,theCompanycomprehensivelypromotedtheselectionandrecruitmentofmarket-orientedtalents,releasedthedevelopmentvitality,andenhancedtheteamcompetitiveness.TheCompanyhasbuiltaresearchanddevelopmentmanagementsystem,strengthenedtheresearchanddevelopmentofnewproducts,newmaterials,productionprocessesandtheintroductionofalternativerawmaterials,andit’sauthorizedwith8patents,including1inventionpatentand7utilitymodelpatentsin2022.

(2)SurvivalinthedifficultsituationofthetextilebusinessandkeepingstabledevelopmentunderthepressureofpropertyleasingandmanagementbusinessIn2022,affectedbythesuperpositionoffactorssuchastheinternationalsituation,theclothingconsumermarketwasweak,thetextileandgarmentindustrywerehithard,thereforetheordersofShenzhenBeautyCenturyCompanydecreased,andtheoperatingefficiencydeclined.

In2022,thepropertyleasingandmanagementbusinessfacedunprecedentedoperatingpressureundertheimpactofthedownturnintherealeconomy.TheCompanyhadsparednoefforttodowellinleasingoperation,vigorouslypromotedtheoperationcostreductionandefficiencyincrease,innovatedandtappedinto,broadenedtheresourcesandsavedcosts,continuouslyimprovedtheservicequality,increasedthepropertymanagementefforts,thusrealizedthestabledevelopmentofpropertyleasingandmanagementbusiness.

(3)TheproductioncapacityofLine7isgraduallyreleased,helpingtheoverallimprovementofthecompany'soperatingperformanceIn2022,theCompanyovercametheadverseimpactofthemarketdownturn,wentallouttoimprovetheproductionandoperationofLine7,andfocusedonimprovingproductioncapacity,yieldandmanagementlevel.Atpresent,theproductioncapacityofLine7hasbeensteadilyincreased,andthethreeRTPproductionlinesarecomparabletothefirst-classlevelintheindustry;Intermsofmanagement,throughtheintroductionofamoebaoperationandmanagementmode,itsegmentedtheaccountingunitintosmallunit,focusedondetails,highlightedtheprocessincentives,andstimulatedtheemployees'awarenessofindependentimprovement.AsofDecember31,2022,thetechnicalindicatorssuchasyieldrateandlossrateofLine7havecontinuedtobeimproved,themainproductsofLine7havecompletedthecustomerverification,theordervolumehasgraduallyincreased,theunitmanufacturingcostofproductshasgraduallydecreased,andtheproductionandoperationofLine7

haveachievedsubstantiallossreduction,thushelpedtheCompany'soverallbusinessperformancetoimprove.

(4)ImplementingmajorassetrestructuringmatterandpromotingthedevelopmentwithcohesionOnDecember30,2022,theCompanyheldthe19thmeetingofthe8thBoardofDirectorsandthe13thmeetingofthe8thBoardofSupervisors,inwhichitdeliberatedandpassedthe"ProposalonShenzhenTextile(Holdings)Co.,Ltd’sIssuanceofSharesandPaymentofCashtoPurchaseAssetsandRaiseMatchingFundsNamelytheRelatedPartyTransactionPlananditsSummary"andotherproposalsrelatedtothistransaction,planningtopurchase100%oftheequityofHengmeiOptoelectronicsCo.,Ltdbyissuingsharesandpayingcash.Meanwhile,itintendedtoraisematchingfundsfromthenon-publicofferingofsharestonomorethan35eligiblespecifictargets(hereinafterreferredtoasthe"Transaction").Thetransactionconstitutedarelatedpartytransactionandwasexpectedtoconstituteamajorassetrestructuring,butitdidnotconstitutearestructuringandlisting,norledtoachangeintheactualcontrolleroftheCompany.Thetransactionwasconducivetothemainbusinesstocoordinatesystemresources,realizeastrongallianceinthepolarizerindustry,rapidlyincreasetheproductionscaleofpolarizers,optimizetheCompany'sindustrialchainlayoutinthepolarizerindustry,deepenthedepthoftechnicalreserves,andfurtherenhancetheCompany'scorecompetitiveness.

(5)StrengtheningthesafetyawarenessandsoundlydoingwellinsafetyandenvironmentalprotectionworkTheCompanyattachedgreatimportancetosafetyproductionmanagement,strengthenedthebottom-linethinking,overcameparalyzingthinkingandflukementality,andstrictlyimplementedthework.First,itestablishedandimprovedtheresponsibilitysystemforsafeproduction,revisedandimprovedthesafetyproductionmanagementsystem,carriedoutsafetyeducationandtraining,organizedemergencydrills,andimprovedtheemergencyhandlingandsafetymanagementofsafetyincidents;Second,itcarriedoutthesafetyriskcontrolandhiddendangerinvestigationandrectification,implementedthesafetyproduction,supervisionandinspectionofkeyprojectsandplaces,carriedoutdailysafetyinspectionandpatrolofeachaffiliatedenterprise,andrectifiedpotentialsafetyhazardsinatimelymanner;Third,theCompanyactivelyimplementedthesafetyandenvironmentalprotectionupgradingandtransformation,practicedthesustainabledevelopmentproductionconceptofgreenenvironmentalprotection,energyconservationandconsumptionreduction,andcontinuedtosaveenergyandreducedemissions.

(6)Consolidatingthebasisandcapabilities,andconstantlyenhancingthegrass-rootsPartybuildingworkIn2022,underthestrongleadershipofShenzhenSasACPartyCommitteeandShenzhenInvestmentControlPartyCommittee,theCompany’spartycommitteeadheredtotheguidanceofXijinpingofneweraofsocialismwithChinesecharacteristics,furtherimplementedthe20

th

CPCpartyspirit,unswervinglystrengthenedtheparty'sconstruction,strictlycarriedoutthepartyhistoryeducation,strengthenedtheconstructionofpartyconductandcleangovernment,soundlycarriedoutthepartyresearch,deeplyanalyzedthecurrentproblemsanddifficultiesfacedbythemanagement,thustoleadtheCompanytohighqualitydevelopment.

2.Revenueandcost

(1)ComponentofBusinessIncome

InRMB

	2022		2021		Increase/decrease
	Amount	Proportion	Amount	Proportion
Totaloperatingrevenue	2,837,988,264.36	100%	2,330,061,681.00	100%	21.80%
OnIndustry
Manufacturing	2,722,034,654.94	95.91%	2,190,735,918.29	94.02%	24.25%
LeaseandManagementofProperty	80,168,785.00	2.82%	111,568,500.55	4.79%	-28.14%
Other	35,784,824.42	1.27%	27,757,262.16	1.19%	28.92%
OnProducts
LeaseandManagementofProperty	80,168,785.00	2.82%	111,568,500.55	4.79%	-28.14%
Textile	28,247,018.32	1.00%	54,932,578.58	2.36%	-48.58%
Polarizersheet	2,693,787,636.62	94.92%	2,135,803,339.71	91.66%	26.13%
Other	35,784,824.42	1.26%	27,757,262.16	1.19%	28.92%
Area
Domestic	2,722,632,231.25	95.94%	2,075,939,546.10	89.09%	31.15%
Overseas	115,356,033.11	0.04%	254,122,134.90	10.91%	-54.61%
Sub-salemodel
Credit	2,642,221,654.15	93.10%	2,190,735,918.29	94.02%	20.61%
Cashonsale	195,766,610.21	6.90%	139,325,762.71	5.98%	40.51%

(2)SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%

√Applicable□Notapplicable

InRMBUndercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,

	Turnover	Operationcost	Grossprofitrate(%)	Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%)	Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%)	Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%)
OnIndustry
Manufacturing	2,722,034,654.94	2,350,898,811.44	13.63%	24.25%	25.33%	-0.75%
LeaseandManagementofProperty	80,168,785.00	22,508,188.92	71.92%	-28.14%	-2.12%	-7.47%
OnProducts
Polarizersheet	2,693,787,636.62	2,317,753,534.46	13.96%	26.13%	26.85%	-0.49%
LeaseandManagementofProperty	80,168,785.00	22,508,188.92	71.92%	-28.14%	-2.12%	-7.47%
Textile	28,247,018.32	33,105,714.00	-17.20%	-48.58%	-31.76%	-28.88%
Area
Domestic	2,722,632,231.25	2,278,870,111.08	16.30%	31.15%	34.75%	-2.23%
Overseas	115,356,033.11	95,135,785.35	17.53%	-54.61%	-55.92%	2.45%
Sub-salemodel
Credit	2,642,221,654.15	2,196,484,523.29	16.87%	20.61%	17.10%	2.49%
Cashonsale	195,766,610.21	177,521,373.14	9.32%	40.51%	467.74%	-68.24%

adjustedmainbusinessbasedonlatestonyear’sscopeofperiod-end.

□Applicable√Notapplicable

(3)WhethertheCompany’sPhysicalSalesIncomeExceededServiceIncome

√Yes□No

Explanationforayear-on–yearchangeofover30%?Applicable□NotapplicableDuringthereportingperiod,thesalesvolumeandproductionofpolarizerincreasedby40.49%and

39.71%yearonyear,mainlyduetothereleaseofproductioncapacityandsalesincreaseofLine7;Thesalesvolumeandproductionofknittedclothingdecreasedby51.30%and48.57%yearonyear,mainlycausedbythedeclineofknittingsalesorders;inventorydecreasedby42.86%yearonyear,mainlycausedbyinventorydigestion.

(4)DegreeofPerformanceoftheSignificantSalesContractSigneduptothisReportPeriod

□Applicable√Notapplicable

(5)ComponentofbusinesscostIndustrycategory

InRMB

Industryclassification	Items	2022		2021		Increase/Decrease(%)
		Amount	Proportionintheoperatingcosts(%)	Amount	Proportionintheoperatingcosts(%)
Manufacturing	Polarizersheet,Knittedclothing	2,350,898,811.44	99.03%	1,875,725,423.97	98.36%	0.67%
LeaseandManagementofProperty	Rental，Accommodation	22,508,188.92	0.95%	22,996,155.29	1.21%	-0.26%
Other	Other	598,896.07	0.02%	8,272,084.49	0.43%	-0.41%

Productioncategory

Classification	Items	Unit	2022	2021	Changes
Polarizersheet	Sales	10,000squaremeters	3,537.08	2,517.63	40.49%
	Production	10,000squaremeters	3,518.80	2,518.62	39.71%
	Stock	10,000squaremeters	112.41	139.51	-19.43%
Knittedclothing	Sales	10,000pieces	131.00	269.00	-51.30%
	Production	10,000pieces	144.00	280.00	-48.57%
	Stock	10,000pieces	52.00	91.00	-42.86%

Productioncategory

Productioncategory	Items	2022		2021		Increase/Decrease(%)
		Amount	Proportionintheoperatingcosts(%)	Amount	Proportionintheoperatingcosts(%)
polarizer	Directmaterial	1,825,615,761.47	76.90%	1,431,786,820.80	75.08%	1.82%
polarizer	Directlabor	61,855,540.37	2.61%	54,411,427.47	2.85%	-0.24%
polarizer	Powercost	68,806,666.73	2.90%	47,506,506.32	2.49%	0.41%
polarizer	Manufac	361,515,128.87	15.23%	293,147,731.77	15.37%	-0.12%

NoteNone

(6)WhetherChangesOccurredinConsolidationScopeintheReportPeriod

□Yes√No

(7)RelevantSituationofSignificantChangesorAdjustmentoftheBusiness,ProductorServiceintheCompany’sReportPeriod

□Applicable√Notapplicable

(8)SituationofMainCustomersandMainSupplierInformationofMainCustomers

Totalsalesamounttotop5customers(RMB)	1,540,435,366.03
Proportionofsalestotop5customersin	54.28%
Proportionofthesalesvolumetothetopfivecustomersinthetotalsalestotherelatedpartiesintheyear	0.00%

InformationoftheCompany’stop5customers

No	Name	Amount（RMB）	Proportion(%)
1	Customer1	575,452,006.16	20.28%
2	Customer2	261,292,160.18	9.21%
3	Customer3	256,175,900.10	9.03%
4	Customer4	245,813,155.60	8.66%
5	Customer5	201,702,143.99	7.10%
Total	--	1,540,435,366.03	54.28%

Othernote

□Applicable√NotapplicablePrincipalsuppliers

Totalpurchaseoftop5Suppliers（RMB）	824,763,279.45
Percentageoftotalpurchaseoftop5suppliersIntotalannualpurchase(%	40.36%
Proportionofpurchaseamountfromthetop5suppliersinthetotalpurchaseamountfromtherelatedpartiesintheyear	0.00%

Informationaboutthetop5suppliers

No	Name	Amount（RMB）	Proportion(%)
1	Supplier1	193,219,755.99	9.45%
2	Supplier2	186,856,036.60	9.14%
3	Supplier3	165,029,417.05	8.08%
4	Supplier4	146,726,838.02	7.18%

turingexpenses

	turingexpenses
Knittedgarment	Directmaterial	10,220,036.69	0.43%	29,157,370.18	1.53%	-1.10%
Knittedgarment	Directlabor	10,866,298.04	0.46%	9,659,820.67	0.51%	-0.05%
Knittedgarment	Powercost	2,730,422.72	0.12%	968,232.62	0.05%	0.07%
Knittedgarment	Manufacturingexpenses	9,328,519.53	0.39%	8,728,504.05	0.46%	-0.07%

5	Supplier5	132,931,231.80	6.51%
Total	--	824,763,279.45	40.36%

Othernote

□Applicable√Notapplicable

3.Expenses

InRMB

	2022	2021	Increase/Decrease(%)	Notes
Saleexpenses	35,962,529.35	37,973,336.39	-5.30%
Administrativeexpenses	128,388,940.29	122,088,830.15	5.16%
Financialexpenses	12,943,606.57	-130,344.09	10,030.34%	Mainlyduetothere’snointerestcapitalizationinthecurrentperiod.
R&Dexpenses	80,520,155.54	103,508,764.53	-22.21%	MainlyduetothedecreaseininvestmentinR&Dmaterials.

4.ResearchandDevelopment

√Applicable□Notapplicable

NameofmainR&Dproject	Projectpurpose	Projectprogress	Goaltobeachieved	ExpectedimpactonthefuturedevelopmentoftheCompany
Wide-widthAPFproductdevelopment	Thewide-widthlinehasthemassproductioncapacity,improvingcuttingutilizationandrespondingtothedemandformediumsize.	Completed	Realizemassproduction	It’stechnicalreservesbytheCompany,,andwillenhancethecompetitiveness.
Ultra-thinIPSMobilephoneproductdevelopment	DevelopmentofathinIPSmobilephoneproducts	Completed	Realizemassproduction	shortenthegapbetweendomesticpolarizertechnologyandthefirstechelon.increasetheshareandinfluenceofdomesticpolarizers
High-transparencyOLEDTVproductdevelopment	Increaseinmass-producedmodels	Completed	realizemassproduction	Theproductreachesthesamelevelasthecompetitiveproducts,,whichwillpavethewayfortheCompany'sfuturerevenue.
OLEDMobilephoneproductdevelopment	Realizedomesticationofproducts	Completed	realizemassproduction	filldomesticgaps,andenhancetheCompany'sindustrystatus
Developmentofpolarizersfor2500mmultra-widthTVproducts	Increasecuttingutilizationandincreaseopportunitiesforlargersizemassproduction	Completed	Realizemassproduction	Inlinewiththedevelopmenttrendoflarge-screenTVinthemarket,itcaneffectivelyimprovetheutilizationrateofproductcutting,reducetheunitcostofmaterials,improveproductcompetitivenessandcreategreaterprofitmargins:
SANUQIproductdevelopment	AlleviatethetightsupplyofVAcompensationfilmandincreaseproductselectivity	Completed	Realizemassproduction	Enrichingtheproductcategories,canalleviatethetightsupplyofrawmaterials.
Ultra-widthhigh-endIPSTVAGLRproductdevelopment	Marketdemand	Completed	Passcustomerverification	Enrichproductcategories,providemorechoicestothecustomers.

High-contrastMNTproductdevelopment	Marketdemand	Partiallycompleted	Passcustomerverification	Increasetheopportunityforproductstoenterthehigh-endapplicationfield,pavethefoundationformorerevenuefortheCompanyinthefuture,andalsoestablishbrandeffect
Localizeddevelopmentofultra-widthdisplayopticalfilm	Localizationofrawmaterials	Completed	Getmassproductioncapabilities	Breakthemonopolyofimportedmaterials,stabilizethesupplyofrawmaterials.
Touchintegratedpolarizerdevelopment	Addpolarizertouchfunction	Partiallycompleted	Passclientverification	ItwillhelpacceleratetheCompany'sstrategictransformationandupgrading.Enhanceinnovationcapabilities,broadenbusinessscopeandscale,andenhanceprofitability
DevelopmentofUVglueforultra-widthhydrophobicmaterials	Improveproductperformance	Partiallycompleted	Massproductionintroduction	Diversifymaterialsselection,alsocanimproveproductperformance,increasetheopportunitytoenterthehigh-endmarket.
Wide-widththinNBproductdevelopment	Marketdemand	Completed	Realizemassproduction	itfillsthegapintheCompany'sthinNBpolarizermarket,increasesproductdiversity,andestablishesindustrybenchmarks.
Developmentofpolarizersforenergy-efficientmobilephones	Marketdemand	Completed	Massproduction	improveproductcompetitiveness.
Wide-widthIPSMobilephonehigh-transparencyProproductdevelopment	Improvecuttingutilizationandreducecosts	Unfinished	Capableofmassproductionandsupply	Reducecosts,improveyield,andlayasolidfoundationforIPSproductstoenterthesupplysystemofpanelfactories.
Developmentofwide-widthindustrialcontrolconsumergoods	Improvecuttingutilizationandreducecosts	Completed	Realizemassproduction	Promotetheproductionlineutilization,improveproductioncapacitywhilereducingproductioncosts,andimprovemarketcompetitiveness
Thin-profilediffusionbrighteningproductdevelopment	Enrichproductcategories	Partiallycompleted	Realizemassproduction	EnhancethecompetitivenessoftheCompany'sproductsinthehigh-endtabletandhigh-endIPSmobilephonemarket,andeffectivelyconsolidatetheCompany'spolarizermarketinChina.

Company'sresearchanddevelopmentpersonnelsituation

	2022	2021	Increase/decrease
NumberofResearchandDevelopmentpersons(persons)	184	145	26.90%
ProportionofResearchandDevelopmentpersons	12.00%	10.61%	1.39%
AcademicstructureofR&Dpersonnel
AgecompositionofR&Dpersonnel

TheCompany'sR&Dinvestmentsituation

	2022	2021	Increase/decrease
AmountofResearchandDevelopmentInvestment(InRMB)	80,520,155.54	103,508,764.53	-22.21%
ProportionofResearchandDevelopmentInvestmentofOperationRevenue	2.84%	4.44%	-1.60%
AmountofResearchandDevelopmentInvestmentCapitalization(InRMB)	0.00	0.00	0.00%
ProportionofCapitalizationResearchandDevelopmentInvestmentofResearchandDevelopmentInvestment	0.00%	0.00%	0.00%

ReasonsandinfluenceofsignificantchangesinR&DpersonnelcompositionoftheCompany

□Applicable√NotapplicableTheReasonoftheProminentChangeinTotalAmountofResearchandDevelopmentInputOccupyingtheBusinessIncomeYearonYear

□Applicable√NotapplicableReasonsforthedrasticchangeofcapitalizationrateofR&Dinvestmentanditsrationalityexplanation

□Applicable√Notapplicable

5.CashFlow

InRMB

Items	2022	2021	Increase/Decrease(%)
Subtotalofcashinflowreceivedfromoperationactivities	3,378,370,114.97	2,433,304,906.36	38.84%
Subtotalofcashoutflowreceivedfromoperationactivities	2,888,131,564.37	2,437,741,886.71	18.48%
Netcashflowarisingfromoperatingactivities	490,238,550.60	-4,436,980.35	11148.92%
Subtotalofcashinflowreceivedfrominvestingactivities	1,362,677,014.25	1,154,092,748.71	18.07%
Subtotalofcashoutflowforinvestmentactivities	1,263,644,263.66	1,412,622,193.08	-10.55%
Netcashflowarisingfrominvestmentactivities	99,032,750.59	-258,529,444.37	-138.31%
Subtotalcashinflowreceivedfromfinancingactivities	73,230,492.79	339,219,000.00	-78.41%
Subtotalcashoutflowforfinancingactivities	92,382,872.47	50,944,964.13	81.34%
Netcashflowarisingfromfinancingactivities	-19,152,379.68	288,274,035.87	-106.64%
Netincreaseincashandcashequivalents	572,066,400.74	24,071,196.77	2,276.56%

Notestotheyear-on-yearchangeoftherelevantdata?Applicable□Notapplicableincreasedby11,148.92%yearonyear,mainlyduetothereleaseofproductioncapacity,theincreaseofsalesvolumeandtherecoveryofpaymentafterLine7wasputintooperation;Thenetcashflowgeneratedbyinvestmentactivitiesdecreasedby138.31%yearonyear,mainlyduetothelackoflargeinvestmentprojectsinthecurrentperiod;Thenetcashflowgeneratedbyfinancingactivitiesdecreasedby106.64%yearonyear,mainlyduetothelackoflargefinancingprojectsinthecurrentperiod;Thenetincreaseofcashandcashequivalentsincreasedby2,276.56%yearonyear,mainlyduetothereleaseofproductioncapacity,theincreaseofsalesvolumeandtherecoveryofpaymentafterline7wasputintooperation.Thereasonsforthesignificantdifferencebetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesduringthereportingperiodandthenetprofitofthecurrentyear?Applicable□NotapplicableDuringthereportingperiod,thenetcashflowgeneratedbythecompany'soperatingactivitieswas490238550.60yuan,andthenetprofitinthecompany'sconsolidatedstatementswas111791966.32yuan.Therewasasignificantdifferencebetweenthetwo,mainlyduetothereleaseofproduction

capacityandtheincreaseinsalesaftertheproductionofLine7,aswellastheearlypaymentcollectionbycustomers.Forthedifferencebetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesandthenetprofitintheconsolidatedstatementsduringthereportingperiod,see"(VI)NotestoFinancialStatementsItem55(1)SupplementaryInformationtotheCashFlowStatement"in"SectionXFinancialReport"ofthisreport.ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany

√Applicable□Notapplicable

Companyandthenetprofitoftheconsolidatedstatementisdetailedinthe"VII.NotesoftheConsolidatedFinancialStatement55(1)SupplementaryDataoftheCashFlowStatement"inthe"SectionXFinancialReport"ofthisreport..V.AnalysisofNon-coreBusiness

√Applicable□Notapplicable

InRMB

	Amount	Proportionintotalprofit	Explanationofcause	Sustainable(yesorno)
Investmentincome	19,383,351.87	43.71%	Obtaineddividends,contractingfees,wealthmanagementincome,etc.ofshareholdingenterprises	Havethesustainability
Gainsandlossesonchangesinfairvalue	0.00	0.00%
Impairmentofassets	-202,573,465.84	-456.77%	Mainlyduetoinventorypricedeclinelossesandfixedassetimpairmentlosses	Havethesustainability
Non-operatingincome	14,993,082.57	33.81%	Mainlyduetotheinsuranceclaimsettlementamountandthewrite-offofotherpayablesofthecancelledenterprises.	Notsustainable.
Non-operatingexpense	7,477,057.47	16.86%	Mainlyduetothepaymentforproductqualityclaims.	Notsustainable.
Otherincome	26,350,210.89	59.42%	Mainlyduetothegovernmentsubsidies.	Havethesustainability

VI.ConditionofAssetandLiabilities

1.ConditionofAssetCausingSignificantChange

InRMB

	Endof2022		Endof2021		Proportionincrease/decrease	Notestothesignificantchange
	Amount	Proportioninthetotalassets(%)	Amount	Proportioninthetotalassets(%)
Monetaryfund	991,789,968.19	17.66%	302,472,828.60	5.44%	12.22%	Mainlyduetotheincreaseincollectionresultfromincreaseinbusinessvolumeandthereclassificationadjustmentoflarge

						certificatesofdeposit
Accountsreceivable	636,583,469.93	11.33%	479,998,708.57	8.63%	2.70%	MainlyduetothemassproductionofLine7andthegrowthofbusinessscale.
Contractassets		0.00%		0.00%	0.00%
Inventories	558,447,648.77	9.94%	743,401,857.74	13.36%	-3.42%	Manlyduetotheincreaseinsalesresultinginadecreaseinendinginventoryandanincreaseinprovisionforinventoryimpairmentcomparedtotheprioryear.
Investmentrealestate	126,315,834.76	2.25%	125,251,851.43	2.25%	0.00%
Long-termequityinvestment	134,481,835.74	2.39%	133,022,325.77	2.39%	0.00%
Fixedassets	2,240,221,656.36	39.88%	2,396,658,988.81	43.08%	-3.20%	Mainlyduetodepreciationofassets
Constructioninprocess	38,061,619.60	0.68%	71,482,031.08	1.28%	-0.60%
Userightassets	15,365,393.88	0.27%	9,221,189.37	0.17%	0.10%
Short-termloans	7,000,000.00	0.12%	37,575,113.83	0.68%	-0.56%	Mainlyduetotheincreaseindiscountedfinancingforacceptancebills
Contractliabilities	4,274,109.40	0.08%	68,955.21	0.00%	0.08%
Long-termborrowing	607,421,585.00	10.81%	683,016,243.25	12.28%	-1.47%	Mainlyduetothereclassificationofsomeborrowingstonon-currentliabilitiesmaturingwithinoneyearandtherepaymentofborrowings.
Leaseliabilities	8,628,672.71	0.15%	4,243,855.71	0.08%	0.07%
Transactionfinancialassets	319,605,448.44	5.69%	617,191,678.56	11.09%	-5.40%	Mainlyduetothereclassificationadjustmentoflargecertificatesofdeposit
Otherreceivable	10,585,975.38	0.19%	140,185,750.40	2.52%	-2.33%	Mainlyduetotherecoveryofcustomsbonds
Notereceivable	74,619,100.26	1.33%	149,942,880.28	2.70%	-1.37%	Mainlyduetotheincreaseinbusinessvolume
Deferredincometaxassets	69,823,814.29	1.24%	3,708,596.78	0.07%	1.17%	Mainlyduetotherecognitionofdeferredtaxassetsfordeductiblelosses
Non-currentliabilitiesbecomingduewithinoneyear	104,183,438.22	1.85%	5,175,393.52	0.09%	1.76%	Mainlyduetothereclassificationofsomeborrowingstonon-currentliabilitiesmaturingwithinoneyear

Overseasassetsaccountforarelativelyhighproportion.

□Applicable√Notapplicable

2.AssetandLiabilitiesMeasuredbyFairValue

√Applicable□Notapplicable

InRMB

Items

Openingamount

Gain/Lossonfairvaluechangeinthereportingperiod

Cumulativefairvaluechangerecordedintoequity

Impairmentprovisionsinthereportingperiod

Purchasedamountinthereportingperiod

Soldamountinthereportingperiod

Otherchanges

Closingamount

Financialassets
1.Financialassetsmeasuredatfairvaluethroughprofitorloss(excludingderivativefinancialassets)	617,191,678.56				1,046,913,769.88	1,344,500,000.00		319,605,448.44
4．OtherequityInstrumentInvestment	186,033,829.72		-18,355,546.45					167,678,283.27
Subtotaloffinancialassets	803,225,508.28		-18,355,546.45		1,046,913,769.88	1,344,500,000.00		487,283,731.71
Total	803,225,508.28		-18,355,546.45	0.00	1,046,913,769.88	1,344,500,000.00	0.00	487,283,731.71
FinancialLiability	0.00							0.00

OtherchangesNoneDidgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?

□Yes√No

3.RestrictedassetrightsasoftheendofthisReportingPeriodTherestrictedassetsasattheendofthereportingperiodaremonetaryfunds,notesreceivable,fixedassetsandintangibleassets,including:(1)TherestrictedmonetaryfundsmainlyincludetherestrictedfundsequivalenttoRMB1,270,758.22duetothefreezingoftheaccount,andRMB115,719,927.09oftheprincipalandinterestofthedepositduemorethanthreemonthsfromthedateofpurchase.(2)RestrictednotesreceivableshallbenotesreceivableendorsedordiscountedbytheCompanyandnotyetdueonthebalancesheetdate.(3)limitedfixedassetsandintangibleassetsaremainlysubsidiaryShengBophotoelectricwithitspartofselfsustainingpropertytothebankofcommunicationsco.,LTD.Shenzhenbranchastheleadofsyndicatedapplicationformortgageloans,andthecompanyforthemortgageguarantee,seethetideofinformationnetwork(http://www.cninfo.com.cn)companyonthecompanyforsubsidiarybankmortgageguaranteeannouncement(2020-19),theannouncementoftheprogressofthecompanyforthesubsidiaryguarantee(2020-46).VII.Investmentsituation

1.General

□Applicable√Notapplicable

2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod

□Applicable√Notapplicable

3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod

□Applicable√Notapplicable

4.InvestmentofFinancialAsset

（1）Securitiesinvestment

□Applicable√NotapplicableNone

（2）InvestmentinDerivatives

□Applicable√NotapplicableTheCompanyhadnoinvestmentinderivativesinthereportingperiod.

5.Applicationoftheraisedcapital

□Applicable√NotapplicableNone

√Applicable□NotapplicableVIII.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.

2.Salesofmajorequity

□Applicable√NotapplicableIX.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies

√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany

Companyname	Type	Mainbusiness	Registeredcapital	Totalassets	Netassets	Turnover	Operatingprofit	NetProfit
ShenzhenLisiIndustrialCo.,Ltd.	Subsidiary	DomesticTrade,Propertymanage	2,360,000.00	35,604,904.10	28,949,771.53	5,475,185.16	-41,442.24	128,661.18

InRMBSubsidiariesobtainedordisposedinthereportingperiod

□Applicable√Notapplicable

		ment
ShenzhenHuaqiangHotel	Subsidiary	Accommodation,businesscenter;	10,005,300.00	22,784,535.53	20,788,399.17	695,901.49	430,701.87	420,194.28
ShenzhenShenfangRealEstateManagementCo.,Ltd.	Subsidiary	Propertymanagement	1,600,400.00	12,052,572.09	7,840,357.61	14,329,188.47	969,156.38	889,312.58
ShenzhenBeautyCenturyGarmentCo.,Ltd.	Subsidiary	Productionoffullyelectronicjacquardknittingwholeshape	13,000,000.00	37,349,989.80	8,126,619.02	28,247,018.32	-12,022,403.47	-12,013,091.49
SAPOPhotoelectric	Subsidiary	Productionandsalesofpolarizer	583,333,333.00	4,349,764,538.22	2,942,964,174.18	2,735,055,209.89	25,175,118.83	96,071,520.48
Shengtou（HK）Co.,Ltd.	Subsidiary	Salesofpolarizer	HKD10,000	6,209,327.26	6,119,515.80	0.00	179,087.71	135,437.97
ShenzhenShenfangSungangRealEstateManagementCo.,Ltd.	Subsidiary	Propertymanagement	1,000,000	11,322,279.38	9,183,003.92	2,848,247.10	932,247.62	908,941.43
ShenzhenShengjinlianTechnologyCo.,Ltd.	Subsidiary	Polarizertechnologydevelopment;self-ownedpropertyleasing;propertymanagement	1,000,000	0.00	0.00	0.00	0.00	0.00

NoteThefinancialdataofSAPOPhotoelectricmentionedinthetableabovearethefinancialstatementsdataofitsparentcompanyandnon-consolidatedstatementsdata.Shengtou（HK）Co.,Ltd.andShenzhenShengjinlianTechnologyCo.,Ltd.aresubsidiariesofSAPOPhotoelectric.FordetailsofthefluctuationofsubsidiarySAPOPhotoelectric'sperformanceandthereasonsforthechange,pleasereferto"IV.Analysisofmainbusiness"inSectionIIIManagementDiscussionandAnalysis.X．StructuredvehiclecontrolledbytheCompany

□Applicable√NotapplicableXI.ProspectforfuturedevelopmentoftheCompany（I）TheDevelopmentTrendoftheIndustry

1.Industrycompetitionpattern

Polarizerindustryisahighlyconcentratedindustry.Atpresent,thereareabout10majorpolarizermanufacturersintheworld,mainlyinJapan,Chinesemainland,SouthKoreaandTaiwan,Chinaregion.WithcapacityshiftingandtheexpansionofChinesemainlandmanufacturers,OmdiapredictsthatChinesemainlandwillbecometheworld'slargestpolarizerproductionbaseintheworldinthenextthreeyears.

2.Industrytrends

Inrecentyears,duetothecontinuousexpansionofproductioncapacityofmajordomesticpanelmanufacturersandtherapidexpansionofthedemandforrawmaterialssuchasupstreampolarizer,itsgrowthrateisfarfasterthanthegrowthrateofproductioncapacityinvestmentofdomesticpolarizermanufacturers,resultinginasupportinggapinChina.Overseasmanufacturerschoosetograduallyshrinkandexit,andthereisalargespacefordomesticsubstitution,whichisabetterdevelopmentopportunityforthemainlandpolarizermanufacturerswithmarketadvantages,policyadvantagesandgeographicaladvantages.(II)TheCompany'sdevelopmentstrategy

Relyingontheexistingbusinessfoundation,theCompanywillactivelyexplorethebusinessinnovationandupgradingthroughthetwopathsofpotentialexpansionofexistingbusinessandincrementalbusinessinvestmentempowerment,andvigorouslyimplementthe"polarizerplus"strategy;Throughmajorassetrestructuring,itcanoptimizetheCompany'sindustrialchainlayoutinthepolarizerindustry,deepenthedepthoftechnicalreserves,andfurtherenhancethecorecompetitivenessofthelistedcompany.Whilepromotingthecorebusinessofpolarizertobecomebetterandstronger,itwillchoosetheopportunitytoextendtoupstreamrawmaterials,promotethedevelopmentofpolarizerintegrationbusiness,andactivelyexpandotheradvancednewmaterialfields,thustoshapeaworld-classnewmaterialtechnologygroup.(III)Possiblerisks

1.Macroeconomicrisks

Theimpactoftheeconomic,butithasnotbeencompletelyeliminated;theeconomicvitalityhasbeguntorecover,butthefoundationofeconomicrecoveryisstillnotsolid;thehouseholdconsumptionisstillconstrained,andthedomesticdemandeconomywillcontinuetobeunderpressure.TheCompany,asamemberoftheupstreammanufacturersofthedisplaymarket,cannotruleouttheriskthatunpredictablemacroeconomicfluctuationsmayaffecttheCompany'sperformance.

2.Marketrisk

ThepolarizerindustryisanimportantpartintheChina'sfuturemanufacturingdevelopment,thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologieshavebeenchangingdaybyday,andthedomesticsubstitutionprocessofpolarizerindustryisunderway.Withthegradualmassproductionofthe10.5generationline,thesuper-largesizemarketwillusherinnewchanges.WheretheCompany'stechnologyandproductscannotrespondtotheneedsoftheapplicationfieldintime,thewidepolarizerproductsoritsapplicationsarenotasexpected,orthemarketcompetitionintensifiesleadingtothepriceofdisplayproductsdeclining,orthepricereductionpressuretransitstothepolarizermarket,thenthosewilladverselyaffecttheCompany.

3.Rawmaterialrisk

Thecoreproductiontechnologyofpolarizerupstreammaterialshashighbarriers,whicharebasicallymonopolizedbyforeignmanufacturers,andthelocalizationrateisnothigh.ThekeyrawmaterialslikePVAfilm,TACfilmandotheropticalfilmsrequiredforthemanufactureofpolarizersarebasicallymonopolizedbyJapaneseenterprises,andtheupstreammatchingrawmaterialproductionlineandproductiontechnologyareconstrainedbytheJapaneseside,andthemainfilmmaterialpriceisalsoaffectedbysuppliercapacity,marketdemandandyenexchangerate,thusaffectingtheunitcostoftheCompany'sproducts.(IV)KeyWorkin2022

1.Continuetoimprovetheprofitabilityofthemainbusiness

Vigorouslyimplementthefourmajormeasuresof"large-scaleproductioncapacity,productdifferentiation,innovationecology,andleanmanagement".First,furtherpromotetheultra-largesizeproductioncapacityoftheCompany'spolarizerbusinessandimprovetheoverallproductioncapacity;Thesecondistopromoteproductdifferentiation,strengthenthetechnicalresearchonflexibleOLED,automotive,VRpolarizersandotherproducts,andcontinuetooptimizeproductstructure;Thethirdistopromoteinnovationecology,promotetechnicalcooperationanddevelopmentwithupstreamanddownstream,andbuildastandardizedandefficientmarket-orientedR&Dmanagementsystem;Thefourthistopromotetheleanmanagement,effectivelypromotequalityimprovement,costreduction,efficiencyincrease,optimizetheinternalprocesses,improvede-inventoryefficiencyandreduceoperationalrisks.

2.Activelypromotemajorassetrestructuring,andachieveindustrialintegrationwithintheindustry

Instrictaccordancewiththeplanandtimenodeorderlyadvancethematerialassetsreorganization,ensurecomprehensivecompletedthematerialassetsreorganization,realizethepolarizedindustrycombination,rapidascensionpolarizedproductionscale,optimizetheindustrialchainlayout,deepenthedepthoftechnicalreserves,makesthecompanytowardsthedevelopmentofhighquality.Thismaterialassetreorganizationisinlinewiththerelevantdevelopmentstrategyofthecountryand

Shenzhen,andhaspositivesignificancetoguaranteethesecurityofthenationalnewdisplaysupplychain.

3.EnsurethestablegrowthofpropertybusinessandprovideeffectivesupportfortheCompany'sdevelopmentPropertyenterprisescloselyfollowthechangesofthesurroundingbusinessformsofproperty,carryoutoperationaroundtherentalrateandcapitalrecoveryrate,overcometheproblemsofpropertyage,poorconditionsandbackwardfacilities,continuetoinnovateoperation,tappotentialandincreaseefficiency,improveservicelevelandimproveoperatingefficiency.

4.ContinuetodeepentheCompany'smarket-orientedreformandcontinuetoimprovethelevelofleanmanagementContinuetodeepentheCompany'smarket-orientedreformandcomprehensivelyimplementrefinedmanagement.Solidifytheoperationandmanagementimprovementprocessmode,strengthenoperationandmanagementwithefficiencyasthecore,continuetopromotethedeepeningoperationofamoebabusinessprojects.Inviewofproduction,quality,inventory,salesandotheraspects,itshallrefinemanagementunits,improvemanagementmethods,stimulateemployees'subjectiveinitiative,enhanceenterpriseoperationvitality,thustohelptheCompanyreducecostsandincreaseefficiency,steadilyimprovetheCompany'smarketcompetitiveness,andshapean"efficient,low-consumption,fine-tuned"energy-savingenterprise.

5.Strengthentheconstructionoftalentteamandensuredevelopmentwithtalent-driveninnovation

StrengthentheconstructionofreservetalentechelonintheheadquarteroftheCompany,improvetheworkingmechanismofreservetalenttrainingandassessment,andscientificallyplananddesignthedimensionandcontentofreservetalenttraining.Introducetalentswithcorecompetitiveness,especiallyintroducehigh-endtechnicaltalentsandindustrialmanagementtalents,mobilizeresourcesfromallpartiesandbroadenthechannelsfortheintroductionofcoretalentsinordertodeeplyimplementthestrategyofstrengtheningenterpriseswithtalents.

6.Dowellinsafeproductionandmaintaintheharmonyandstabilityofenterprises

Continuetoimplementthemanagementconceptof"safeproductionisnosmallmatter",alwaysputsafeproductionworkinthefirstplace,paycloseattentiontosafeproductionandsafetyworkinallaspects,establishandimprovevarioussafetymanagementsystemsandnorms,acceleratethereformandinnovationofsafetysupervision,implementtheresponsibilityforsafeproduction,withspecificresponsibilitiesandcleardivisionoflabor.Overcometheparalyzingthinkingandthelaxemotions,continuetomaintainahigh-pressuresituation,thustocontinuouslyimprovetheCompany'ssafetyproductionmanagementlevel,andbuildasolidfoundationforsafetymanagement.

7.Strengthentheguidancebypartybuildingandinnovatecorporateculture

AdheretotheguidanceofXijinpingofthethoughtofsocialismwithChinesecharacteristicsinthenewera,deeplystudyandimplementthespiritofthe20thNationalCongressoftheCommunistPartyofChina,fullyimplementtheimportantexpositionsofthegeneralsecretaryonthereformanddevelopmentofstate-ownedenterprisesandpartybuilding,buryourheadsinhardwork,strivetowork,focusonmakingupforshortcomings,strengththeweaknesses,consolidatethebottomplates,andpromoteadvantages,thustoprovideastrongpoliticalandorganizationalguaranteeforthehealthydevelopmentoftheCompany.XII.Particularsaboutresearches,visitsandinterviewsreceivedinthisreportingperiod

√Applicable□Notapplicable

Receptiontime	Receptionplace	Thewayofreception	Objecttypeofreception	Receptionperson	Themaincontentofthediscussionandtheinformationprovided	Indexofthebasicsituationofthesurvey
February11,2022	MeetingroomonthesixthflooroftheCompany	Fieldresearch	Organization	CedarCapitalYuanBin；SinoLifeAssetZhouZhichao；LingzhanCapitalXuYunfei,ShaoCongyuan；PinanFundZhangXiaoquan；BoliangAssetZhangLi；QianhaiYanghongXiaozheng	TheCompany'sfuturedevelopmentplan,theimpactofLine7ramp-upontheCompany'sperformance,theCompany'snamechangeplan,theimpactofpanelpricefluctuationsonthepriceofpolarizers,andtheprogressofOLEDTVproductsandothermatters.	Fordetails,pleaserefertotheInvestorRelationsactivityRecordofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-01)bythecompanyhttp://www.cninfo.com.cn.
April12,2022	MeetingroomonthesixthflooroftheCompany	Other	Other	Themajorityofinvestors	TheCompany'sfuturedevelopmentplan,theLine7productionandconstruction,inventoryimpairment,theCompanynamechangeplan,thestate-ownedenterprisereformplanandotherissues.	Fordetails,pleaserefertotheInvestorRelationsactivityRecordofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-02)bythecompanyhttp://www.cninfo.com.cn.
June14,2022	MeetingroomonthesixthflooroftheCompany	Fieldresearch	Organization	CedarCapitalLiuJinyu	Vehiclepolarizerlayout,polarizerproductsformobilephones,	Fordetails,pleaserefertotheInvestorRelationsactivityRecord

					Line7ramp-upprogress,domesticsubstitutionofupstreamrawmaterials,etc.	ofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-03)bythecompanyhttp://www.cninfo.com.cn.
November9,2022	MeetingroomonthesixthflooroftheCompany	Other	Other	Themajorityofinvestors	Corporateperformance,corporategovernance,equityincentives,developmentstrategy,sustainabledevelopmentandotherissues.	Fordetails,pleaserefertotheInvestorRelationsactivityRecordofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-04)bythecompanyhttp://www.cninfo.com.cn.
November24,2022	MeetingroomonthesixthflooroftheCompany	Fieldresearch	Organization	ShenzhenDexunSecurities：RuanShiwang,WangShiyang,ChangJianwu,ZhuXiaofei,FuJunsong；VanguardFund：ZengJie；HotlandInnovationasset：WangGuorui；ShenzhenRongmaiTechnology：SongBingbing；PinganBank：ZhangDenghui；ShenwanHongyuanGroup：LiJunhui；ShenzhenGaoboInvestment：ZhouJianfang；ShenzhenHuaxiaAsset：TongJin；WangzhengAsset：MaLi；Beijing	Domesticsubstitutionofupstreamrawmaterials,theCompany'smaincustomers,theCompany'sproductstructure,automotivepolarizerproductsandotherissues.	Fordetails,pleaserefertotheInvestorRelationsactivityRecordofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-05)bythecompanyhttp://www.cninfo.com.cn.

				DingsaInvestment：LengHao;GuoChuang：WuYanbin
November30,2022	MeetingroomonthesixthflooroftheCompany	Byphone	Organization	GreatWallSecuritiesZhangYunmo；FirstStateCindaFundTongChangxi；TianhongFundShenZonghang,ZhangLei,ZhouKaining	TheCompany'smaincustomers,productstructure,massproductionofOLEDpolarizerproducts,automotivepolarizerresearchanddevelopment,newproductionlineplanningandotherissues.	Fordetails,pleaserefertotheInvestorRelationsactivityRecordofShenzhenTextile(Holdings)Co.,Ltd.(No.:2022-06)bythecompanyhttp://www.cninfo.com.cn.

IV.CorporateGovernanceI.Generalsituation

Duringthereportingperiod,theCompanyoperatedinstrictaccordancewiththerequirementsofrelevantlaws,regulationsandnormativedocuments,suchasSecuritiesLaw,CompanyLaw,GovernanceGuidelinesforListedCompanies,GuidelinesforSelf-disciplineSupervisionofListedCompaniesinShenzhenStockExchangeNo.1-StandardOperationofListedCompaniesonMainBoard,andstrengthenedriskmanagementandcontroltoensurethehealthyandstabledevelopmentoftheCompany.Atpresent,theCompanyiswithbasicallysoundgovernancesystems,standardizedoperation,andrefinedcorporategovernancestructure,whichmeetstherequirementsofthenormativedocumentsonthegovernanceoflistedcompaniesissuedbyChinaSecuritiesRegulatoryCommission.

In2022,companyheldatotalof3generalmeetings,convenedgeneralmeetings,standardizedvotingprocedurestosafeguardtheeffectivenessandlegalityinstrictaccordancewiththeregulationsandrequirementsofCorporationLaw,ArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Companiesactivelyprotectedthevotingrightsofminorityinvestors,andgeneralmeetingswereconvenedintheformoflivenetworktoadequatelyassuresmallinvestorsoftheirrightstoexercise.In2022,theboardofdirectorsheld10meetings,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.In2022,theboardofsupervisorsheld6meetings.TheboardofsupervisorsstrictlyfollowedtherequirementsofArticlesofCorporationandRulesofprocedureoftheboardofsupervisorsandotherrelevantlawsandregulations,supervisedthelegalcomplianceofthedutiesperformedbycompany'sfinancialpersonnelanddirectors,managersandotherseniormanagementpersonnelintheaimofmaintainingthelegitimaterightsandinterestsofthecompanyanditsshareholders.Allthesupervisorsfulfilledtheirobligations,exercisedtheirrightsaccordingtothelaws.Theconveningandvotingproceduresoftheboardofsupervisorswerelegal,andtheresolutionswerelegalandvalid.Theestablishmentandimplementationofboardofsupervisorsplayedanactiveroleinimprovingcorporategovernancestructureandregulatingcorporateoperations.

Moreover,theCompanycarriedoutthespecialworkBlueSkyActionaccordingtoNotificationonImplementingSpecialWorkwhereInvestorsProtectBlueSkyActionpublishedbyShenzhenSecuritiesBureautoenhancethequalityofinformationdisclosureasthekeypoint,tocontinuouslyperfectthecommunicationmechanismandtopromotethenormativedevelopmentoftheCompany.variousplatformsweremadefulluseof,suchastelephone,e-mail,website,especiallytheinteractiveplatformofinvestorsinShenzhenStockExchange,solvedquestionsbroughtbyinvestors,andcommunicatedwith

mediumandsmallinvestorsinteractively,andensurealltheinvestorsobtainedequalopportunitiesforinformalaccess.Meanwhile,intheaimofimprovingthetransparencyoflistedcompanies,companyacceptedinvestors’on-siteinvestigationtohavecomprehensiveunderstandingsofthecompany'sbusinesssituationthroughface-to-facecommunicationwithmanagement,alsourgedthecompanyestablishedaresponsibilitytoreturnoninvestors,improvedandenhancedthecorporategovernancestandards.Meanwhile,theCompanycontinuedtoperfectthevotingmechanismforminorityinvestors.In2022,theminorityinvestors’votingwascountedseparatelyateachofthe3shareholder’smeetings,andwhoseresultwasdisclosedatthedecisionannouncementattheshareholder’smeeting,whichfullyguaranteedtheexecutionofpoweroftheminorityinvestorsDoesthereexistanydifferenceincompliancewiththecorporategovernance,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’Generalmeetingof2022	Provisionalshareholders’Generalmeeting	49.43%	January18,2022	January19,2022	http://www.cninfo.com.cn）AnnouncementNo.:2022-01
2021Shareholders’generalmeeting	AnnualShareholders’GeneralMeeting	49.50%	May19,2022	May20,2022	http://www.cninfo.com.cn）AnnouncementNo.:2022-16
TheSecondprovisionalshareholders’Generalmeetingof2022	Provisionalshareholders’Generalmeeting	49.86%	October28,2022	October29,2022	http://www.cninfo.com.cn）AnnouncementNo.:2022-39

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√NotapplicableV.InformationaboutDirectors,SupervisorsandSeniorExecutives

1.Basicsituation

Name	Positions	Officestatus	Sex	Age	Startingdateoftenure	Expirydateoftenure	Sharesheldattheyear-begin(share)	Thenumberofsharesheldinthecurrentperiod(shares)	Numberofsharesreducedinthecurrentperiod(shares)	Otherchanges(shares)	Numberofsharesheldattheendoftheperiod(shares)	Reasonsforincreaseordecreaseofshares
YinKefei	Boardchairmann，Secretaryyofthepartycommittee	Inoffice	Male	48	February10,2021	February9,2024	0	0	0	0	0	0
ZhuMeizhu	DeputySecretaryofthePartycommittee，Director,GeneralManger	Inoffice	Male	58	July19,2017	February9,2024	93,000	0	0	0	93,000	0
NingMaozai	Director,DeputySecretaryofthePartycommittee	Inoffice	Male	46	Decembe14,2017	February9,2024	0	0	0	0	0	0
WangChuan	Director,DeputyGeneralManager	Inoffice	Male	50	October28,2022	February9,2024	0	0	0	0	0	0
HeFei	Director,CFO	Inoffice	Male	44	January16,2020	February9,2024	0	0	0	0	0	0
SunMinghui	Director	Inoffice	Male	41	February10,2021	February9,2024	0	0	0	0	0	0
HeZuowen	IndependentDirector	Inoffice	Male	60	July19,2017	July18,2023	0	0	0	0	0	0
CaiYuanqing	IndependentDirector	Inoffice	Male	53	July19,2017	July18,2023	0	0	0	0	0	0
WangKai	IndependentDirector	Inoffice	Male	39	January16,2020	February9,2024	0	0	0	0	0	0
MaYi	Chairmanofthesupervisorycommittee,	Inoffice	Male	56	January16,2020	February9,2024	0	0	0	0	0	0

	SecretaryoftheCommissionforDisciplineInspection
YuanShuwen	Shareholders'Supervisor	Inoffice	Male	42	January16,2020	February9,2024	0	0	0	0	0	0
ZhanLumei	Employeesupervisor	Inoffice	Female	53	February10,2021	February9,2024	0	0	0	0	0	0
LiuHonglei	DeputyGM	Inoffice	Male	58	July19,2017	February9,2024	3,000	0	0	0	3,000	0
GuanFei	DeputyGM	Inoffice	Male	37	September22,2021	February9,2024	0	0	0	0	0	0
JiangPeng	Secretarytotheboardofdirectors	Inoffice	Female	52	January16,2015	February9,2024	0	0	0	0	0	0
ZhangJian	Boardchairmann，Secretaryyofthepartycommittee	Dimission	Female	43	February10,2021	August2,2022	0	0	0	0	0	0
Total	--	--	--	--	--	--	96,000	0	0	0	96,000	--

Duringthereportingperiod,whetherthereisdismissalofdirectorsandsupervisorsandrecruitmentofseniormanagers

√Yes□No

ZhangJian,theformerChairmanoftheCompany,resignedonAugust2,2022.Fordetails,pleaserefertotheCompany'sAnnouncementontheResignationoftheChairmanoftheCompany(No.2022-

23)onCNINF(http://www.cninfo.com.cn).OnAugust5,2022,theCompanyheldtheFourteenthMeetingoftheEighthBoardofDirectors,electedYinKefeiastheChairmanoftheEighthBoardofDirectors,nominatedWangChuanasacandidateforthenon-independentdirectoroftheEighthBoardofDirectors,andsubmittedtheappointmentofWangChuanasthedeputygeneralmanageroftheCompanytotheGeneralMeetingofShareholdersforelection.Fordetails,pleaserefertotheCompany'sAnnouncementonResolutionoftheFourteenthMeetingoftheEighthBoardofDirectors(No.2022-24)onCNINF(http://www.cninfo.com.cn).OnOctober28,2022,theCompanyheldthesecondextraordinarygeneralmeetingofshareholdersin2022,andelectedWangChuanasanon-independentdirectoroftheeighthboardofdirectorsoftheCompany.Asofthedisclosuredateofthisreport,exceptfortheabovechanges,otherdirectors,supervisorsandseniormanagementpersonneloftheCompanyhavenotchanged.

Changesofdirectors,supervisorsandseniorexecutives

√Applicable□Notapplicable

Name	Positions	Types	Date	Reason
ZhangJian	Boardchairman	Dimission	August2,2022	Jobadjustment.
YinKefei	Boardchairman	Elected	August5,2022	Theoriginalchairmanoftheboardresigned.
WangChuan	Director,DeputyGeneralManger	Elected	October28,2022	Theoriginaldirectoroftheboardresigned.

2.PostsholdingProfessionalbackground,workexperienceandmaindutiesintheCompanyofexistingdirectors,supervisorsandseniormanagement

(1)Director

YinKefei,male,borninJuly1974,holdsamaster'sdegree,isanengineerandamemberoftheCommunistPartyofChina.SuccessivelyservedastechniciananddeputydirectorofcustomerservicecenterofPipelineGasBranchofShenzhenGasGroupCo.,Ltd;DeputyDirector,Director,andDirectoroftheGeneralOfficeoftheCivilUserServiceDepartmentofthePipelineGasCustomerServiceBranchofShenzhenGasGroupCo.,Ltd;DeputyGeneralManagerofGanzhouShenranNaturalGasCo.,Ltd.ofShenzhenGasGroupCo.,Ltd;MemberofthePartyLeadershipGroupandDeputyDirectoroftheState-ownedAssetsSupervisionandAdministrationCommissionofDongguanCity,GuangdongProvince,concurrentlyservingasViceChairmanofDongguanWaterInvestmentGroupCo.,Ltd;DeputySecretaryGeneralofDongguanMunicipalGovernmentofGuangdongProvince,SecretaryandDirectorofthePartyLeadershipGroupoftheLiaisonOfficeinBeijingofDongguanMunicipalGovernmentofGuangdongProvince,andconcurrentlyChairmanoftheSupervisoryBoardofDongguanBiotechnologyIndustryDevelopmentCo.,Ltd;DeputySecretaryofthePartyCommittee,Director,GeneralManagerofDongguanFinancialHoldingGroupCo.,Ltd.,concurrentlyservingasadirectoroftheBankofDongguanandadirectorofDongguanAssetManagementCompany.Currently,heistheDeputyGeneralManagerofShenzhenInvestmentHoldingCo.,Ltd.,andconcurrentlyservesastheChairmanofElectronicComponentsandIntegratedCircuitInternationalTradingCenterCo.,Ltd.,aswellastheSecretaryofthePartyCommitteeandChairmanoftheCompany.ZhuMeizhu,Male,BorninNovember1964,Masterdegree,Seniorengineer,onceservedsuccessivelyaschiefDeputygeneralManagerofEnterpriseManagementDeptoftheCompany,DirectorofR&DCenter,AssistantGeneralManagerandDeputyGeneralManager,HeservesasViceSecretaryofthepartycommittee,directorandGeneralManageroftheCompany.

NingMaozai,male,borninJuly1975,bachelordegree,senioradministrationengineer,ChineseCommunistPartymember;hehasservedsuccessivelyastheofficeclerkofShenzhenGuomaoAutomobileIndustryCo.,Ltd,theclerk,principalstaffmember,associatedirectoranddirectorofparty-massofficeofShenzhenPropertyDevelopment(Group)Corp.andholdaconcurrentpostofdeputyhumanresourceDeputymanagerandmanager;AtpresentheholdsthepositionofcompanydirectorandViceSecretaryofthepartycommitteeoftheCompany.

WangChuan,male,borninMarch1972,holdsamaster'sdegree,isaneconomist,engineer,andmemberoftheCommunistPartyofChina.HehassuccessivelyservedastheDeputyDirector,Minister,andAssistantDirectoroftheCooperationandDevelopmentDepartmentoftheShenzhenNationalHighTechnologyIndustryInnovationCenter,theDirector,GeneralManager,andChairmanofShenzhenInnovationStartTechnologyCo.,Ltd.,andtheDeputyGeneralManagerofShenzhenTongchanGroup

Co.,Ltd.Currently,heistheDirectoroftheIndustrialManagementDepartmentofShenzhenInvestmentHoldingCo.,Ltd.,amemberofthePartyCommittee,adirector,andadeputygeneralmanagerofthecompany.HeisalsotheChairmanofShenzhenShengboOptoelectronicTechnologyCo.,Ltd.HeFei,male,borninFebruary1978,holdsamaster'sdegree,isamemberoftheCommunistPartyofChina,aChinesecertifiedpublicaccountant,andholdstheprofessionaltitleofaccountant.HehassuccessivelyservedasanaccountantintheplanningandfinancedepartmentofShenzhenGasGroupCo.,Ltd.,anaccountantinthefinancedepartmentofShenzhenGasInvestmentCo.,Ltd.,asubsidiaryofShenzhenGasGroupCo.,Ltd.,amanagerinthefinancedepartmentofHubeiShenjieCleanEnergyCo.,Ltd.,asubsidiaryofShenzhenGasInvestmentCo.,Ltd.,adirectorinthecomprehensivefinancedepartmentofShenzhenConventionandExhibitionCenterManagementCo.,Ltd.,andadeputydirectorinthefinancedepartment(settlementcenter)ofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisadirectorandCFOofthecompany,servingasthefinancialdirectorofthecompany,andconcurrentlyservingasasupervisorofShenzhenShengboOptoelectronicTechnologyCo.,Ltd.

SunMinghui,male,borninSeptember1981,holdsamaster'sdegree,isasenioraccountant,andamemberoftheCommunistPartyofChina.HehassuccessivelyservedasastaffmemberoftheCapitalDepartmentofShenzhenEnergyFinanceCo.,Ltd.,theFinancialManagementDepartmentofShenzhenEnergyGroupCo.,Ltd.,theFinancingManagementDirectoroftheFinancialBudgetDepartmentofShenzhenInvestmentHoldingCo.,Ltd.,theSeniorDirectoroftheFinanceDepartmentandtheBoardOffice,andtheDeputyDirectoroftheFinanceDepartment(SettlementCenter).Currently,heisthedirector(director)ofthefinancedepartment(settlementcenter)ofShenzhenInvestmentHoldingCo.,Ltd.andadirectorofthecompany.

HeZuowen,male,borninOctober1962,holdsamaster'sdegreeinbusinessadministration,anassociateprofessorofaccounting,acharteredcertifiedpublicaccountantinthesecuritiesandfuturesindustry,andaregisteredtaxagent.Currently,heisapartnerofDahuaCertifiedPublicAccountants(SpecialGeneralPartnership)andthesecretaryoftheGeneralPartyBranchofShenzhenBranch.Healsoservesasanoff-campustutorformaster'sdegreestudentsatShenzhenUniversity,thegeneralmanagerandchairmanofShenzhenTianyeTaxAgentsCo.,Ltd.,amemberoftheGuangdongProvincialSeniorAccountantsReviewCommittee,amemberoftheShenzhenMunicipalCertifiedPublicAccountantsIndustryCommitteeoftheCommunistPartyofChina,andadirectoroftheShenzhenMunicipalCertifiedTaxAgentsAssociation,MemberoftheCapitalMarketAdvisoryExpertCommitteeoftheXinjiangRegulatoryBureauofChinaSecuritiesRegulatoryCommission,independentdirectorofShenzhenTongyiIndustrialCo.,Ltd.,independentdirectorofShenzhenYiruiBiologicalCo.,Ltd.,independentdirectorofShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.,andindependentdirectoroftheCompany.

CaiYuanqing,male,borninSeptember1969,holdsaDoctorofLawfromHiroshimaUniversityinJapan,amemberoftheBoardofGovernorsofShenzhenUniversity,aprofessoroftheSchoolofLaw,adirectoroftheCenterforCorporateLawResearch,atutorformaster'sdegreestudents,aVicePresidentoftheGuangdongCivilandCommercialLawResearchAssociation,andanExecutiveVicePresidentoftheShenzhenSecuritiesLawResearchAssociation.HealsoservesasanarbitratoroftheShenzhenInternationalArbitrationCourt,anarbitratoroftheZhuhaiInternationalArbitrationCourt,andan

independentdirectorofChinaMerchantsShekouIndustrialZoneHoldingCo.,Ltd,IndependentDirectorofOufeiguangGroupCo.,Ltd.,IndependentDirectorofGuangdongLingyiIntelligentManufacturingCo.,Ltd.,IndependentDirectorofShenzhenZhongdianHongKongTechnologyCo.,Ltd.,andIndependentDirectoroftheCompany.

WangKai,male,borninSeptember1983,isadoctoralcandidatefromHuazhongUniversityofScienceandTechnology,amemberoftheCommunistPartyofChina,anassociateprofessorandresearcheroftheDepartmentofElectronicandElectricalEngineeringofSouthernUniversityofScienceandTechnology,anationaloutstandingyouth,andadistinguishedyouthfromGuangdongProvince.HehasservedasamemberoftheTechnicalCommitteeoftheBeijingBranchoftheInternationalSocietyforInformationDisplay(SID),deputydirectoroftheKeyLaboratoryofEnergyConversionandStorageTechnologyoftheMinistryofEducation,deputydirectoroftheKeyLaboratoryofQuantumDotAdvancedDisplayandLightinginGuangdongProvince,andotherpositions.HeisatechnicalconsultantofXi'anSafarisSemiconductorCo.,Ltd.,atechnicalconsultantofShenzhenPolangInnovationTechnologyCo.,Ltd.,andanindependentdirectorofthecompany.

（2）Supervisor

MaYi,male,borninAugust1966,holdsabachelor'sdegree,amemberoftheCommunistPartyofChina,andholdsthetitleofassistanteconomist.HehassuccessivelyservedasacadreoftheautomobilemanufacturingplantofHainanProvincialAutomobileTransportationCorporation,thebusinessdirectorandgeneralmanagerassistantofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,theoperationdirectorofCOSCOLogisticsGuangzhouAnteidaLogisticsCo.,Ltd.,thegeneralmanagerofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,thedirectorandassistantdirectoroftheplanninganddevelopmentdepartmentofShenzhenHighwayPassengerandFreightTransportServiceCenter,andtheheadofFutianStation,Director,GeneralManager,andDeputySecretaryofthePartyCommitteeofShenzhenHighwayPassengerandFreightTransportationServiceCenterCo.,Ltd.Currently,heistheSecretaryoftheDisciplineInspectionCommissionandChairmanoftheBoardofSupervisorsoftheCompany.

YuanShuwen,male,borninMay1980,holdsamaster'sdegree,isasenioraccountant,andamemberoftheCommunistPartyofChina.HehassuccessivelyservedasthestationmasterofShiguBusinessManagementStationofHengshanCountyRuralBusinessManagementBureau,thefinancialdirectorofShenzhenFengchengIronWireProductsCo.,Ltd.,theprojectmanagerofShenzhenBranchofLixinCertifiedPublicAccountantsCo.,Ltd.,andthegeneralledgeraccountantofthefinancialdepartmentofShenzhenZhenye(Group)Co.,Ltd.Currently,heisthedeputydirectoroftheassessmentanddistributiondepartmentofShenzhenInvestmentHoldingCo.,Ltd.,andthesupervisorofthecompany.

ZhanLumei,female,borninJune1969,holdsacollegedegree,isaseniorlaborrelationscoordinator,seniorcareerinstructor,andamemberoftheCommunistPartyofChina.HehassuccessivelyservedastheadministrativeandpersonneldirectorofShenzhenHualangClothingCo.,Ltd.,aswellasthedirectorandmanagerofthehumanresourcesdepartmentofthecompany.Currently,heistheViceChairmanoftheCompany'sWorkers'Federation,theDirectorofthePartyandMassWorkDepartment,theChairmanoftheLaborUnionoftheCompany,andtheEmployeeSupervisor.

（3）Seniormanagement

LiuHonglei,male,borninMay1964,holdsabachelor'sdegree,isaseniorengineer,andamemberoftheCommunistPartyofChina.Hehassuccessivelyservedasatechnician,workshopdirector,anddeputydirectorofthedirector'sofficeoftheFirstFilmFactoryoftheMinistryofChemicalIndustry,

thedirectorofthePersonnelEducationDepartmentofChinaLekaiFilmGroup,thedeputygeneralmanager,director,andgeneralmanagerofShenzhenShengboOptoelectronicTechnologyCo.,Ltd.,andthedirectorofthePartyMassWorkDepartmentandthemanageroftheOperationManagementDepartmentofthecompany.Currently,heistheDeputyGeneralManagerofthecompany.GuanFei,male,borninDecember1985,holdsamaster'sdegree,amemberoftheCommunistPartyofChina,andisanintermediateeconomist.SuccessivelyservedasCustomerManagerofAgriculturalBankofChinaShenzhenBranch;DeputyChiefStaffMemberofSichuanRegulatoryBureauofChinaBankingandInsuranceRegulatoryCommission;SeniorManageroftheInstitutionalManagementDepartmentofSichuanIndustrialRevitalizationandDevelopmentInvestmentFundCo.,Ltd.,concurrentlyservingasDeputyGeneralManagerofChengduFinancialHoldingDevelopmentEquityInvestmentFundManagementCo.,Ltd;ThefirstgeneralmanagerofSichuanInnovationDevelopmentInvestmentManagementCo.,Ltd.,concurrentlyservingastheexecutivedeputygeneralmanagerofChengduVentureCapitalShihaoInvestmentManagementCo.,Ltd.,andconcurrentlyservingasthechairmanofSichuanFudaInvestmentManagementCo.,Ltd;DeputyGeneralManagerofShenzhenInfrastructureInvestmentFundManagementCo.,Ltd.Currently,heistheDeputyGeneralManagerofthecompany.

JiangPeng,female,borninOctober1970,holdsabachelor'sdegreeandisamemberoftheCommunistPartyofChina.HehassuccessivelyservedasasectionmemberanddeputysectionchiefoftheofficeofShandongProvincialAquaticEnterpriseGroupCorporation,thesectionchief,deputydirector,andsecuritiesaffairsrepresentativeoftheBoardofDirectorsOfficeofShandongZhongluOceanFisheriesCo.,Ltd.,thesecuritiesaffairsrepresentativeofHuafuColorTextileCo.,Ltd.,thesecuritiesaffairsrepresentativeofthecompany,andthedirectoroftheBoardSecretariat.Currently,heistheSecretaryoftheBoardofDirectorsoftheCompanyandconcurrentlyservesasadirectorofShenzhenShengboOptoelectronicTechnologyCo.,Ltd.Officetakinginshareholdercompanies

√Applicable□Notapplicable

Namesofthepersonsinoffice	Namesoftheshareholders	Titlesengagedintheshareholders	Sharingdateofofficeterm	Expirydateofofficeterm	Doeshe/shereceiveremunerationorallowancefromtheshareholder
YinKefei	ShenzhenInvestmentHoldingsCo.,Ltd.	DeputyGM	January11,2021		Yes
WangChuan	ShenzhenInvestmentHoldingsCo.,Ltd.	DirectoroftheIndustryManagementDepartment	May23,2018		No
SunMinghui	ShenzhenInvestmentHoldingsCo.,Ltd.	DirectorofFinancialDept(Clearingcentre）	November11,2020		Yes
YuanShuwen	ShenzhenInvestmentHoldingsCo.,Ltd.	DeputyDirectorofdisciplineInspection&Supervision	September18,2017		Yes
Descriptionofthepositionintheshareholderunit	No

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
YinKefei	ShenzhenInternationalInvestmentPromotionFederation	Thecandidateforthesecondpresident	January20,2022		No
YinKefei	ElectroniccomponentsandintegratedcircuitsInternationalTradingCenterCo.,Ltd	Boardchairman	December5,2022		No
WangChuan	ShezhenShenfubao（Group）Co.,Ltd.	Director	June21,2018		No
WangChuan	ULTRARICHINTERNATIONALLIMITED	Director	June27,2018		No
WangChuan	ShenzhenTongchanGroupCo.,Ltd.	Director	December17,2020		No
SunMinghui	ChinaNanshanDevelopment(Group)Co.,Ltd.	Supervisor	October17,2017		No
SunMinghui	ShenzhenHighwayPassenger&CargoTransportationServiceCenterCo.,Ltd.	Supervisor	June16,2017		No
SunMinghui	ULTRARICHINTERNATIONALLIMITED	Director	November11,2020		No
SunMinghui	ShenzhenSpecialEconomicZoneRealEstate	Director	November11,2020		No
SunMinghui	HubeiShentoukongInvestmentDevelopmentCo.,Ltd	Director	November11,2020		No

SunMinghui	ShenzhenShengangTechnologyInnovationCooperationZoneDevelopmentCo.,Ltd.	Director	October18,2021		No
SunMinghui	ShenzhenChiwanDevelopmentCo.,Ltd.	Supervisor	June30,2021		No
YuanShuwen	ShenzhenTextile(Holdings)Co.,Ltd.	Supervisor	September27,2019		No
YuanShuwen	ShenzhenInternationalTenderingCo.,Ltd.	Supervisor	October22,2017	June10,2020	No
Descriptionofhispositioninotherunits	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
YinKefei	Director,Boardchairman，Secretaryofthepartycommittee	Male	48	Inoffice	0	Yes
ZhuMeizhu	DeputySecretaryofthePartycommittee，Director,GeneralManger	Male	58	Inoffice	151.26	No
NingMaozai	Director,DeputySecretaryofthePartycommittee	Male	47	Inoffice	134.2	No
WangChuan	Director,DeputyGM	Male	51	Inoffice	28.9	No
SunMinghui	Director	Male	41	Inoffice	0	Yes
HeFei	Director,CFO	Male	45	Inoffice	99.02	No
HeZuowen	IndependentDirector	Male	60	Inoffice	12	No
CaiYuanqing	IndependentDirector	Male	53	Inoffice	12	No
WangKai	IndependentDirector	Male	39	Inoffice	12	No
MaYi	Chairmanofthe	Male	56	Inoffice	111.42	No

	supervisorycommittee,SecretaryoftheCommissionforDisciplineInspection
YuanShuwen	Supervisor	Male	42	Inoffice	0	Yes
ZhanLumei	Employeesupervisor	Female	53	Inoffice	63.7	No
LiuHonglei	DeputyGM	Male	58	Inoffice	130.51	No
GuanFei	DeputyGM	Male	37	Inoffice	96.99	No
JiangPeng	Secretarytotheboardofdirectors	Female	52	Inoffice	127.23	No
ZhangJian	Boardchairman,Director	Female	43	Dimission	110.07	No
Total	--	--	--	--	1,089.30	--

Note:Thesalariesofthedirectors,supervisors,andseniorexecutiveswhoreceivesalariesinthecompanyincludebasicsalaryandpartialperformance-basedsalary,aswellaspartialperformance-basedsalarypaidinthepreviousyearafterthecompletionoftheannualassessment;WangChuanhasbeenreceivingsalaryinthecompanysincehewashiredasDeputyGeneralManagerinJuly2022.VI.Performanceofdirectors'dutiesduringthereportingperiod

1.Informationoftheboardmeetingsduringthereportingperiod

Session	Conveningdate	Disclosuredate	Meetingresolution
The10thmeetingoftheEighthBoardofDirectors	February25,2022	February26,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-03)
The11thmeetingoftheEighthBoardofDirectors	March15,2022	March17,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-04)
The12thmeetingoftheEighthBoardofDirectors	April27,2022	April29,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-13)
The13thmeetingoftheEighthBoardofDirectors	June17,2022	June18,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-18)
The14thmeetingoftheEighthBoardofDirectors	August5,2022	August6,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-24)
The15thmeetingoftheEighthBoardofDirectors	August23,2022	August25,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-29)
The16thmeetingoftheEighthBoardofDirectors	October11,2022	October12,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-35)
The17thmeetingoftheEighthBoardofDirectors	October28,2022	October29,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-40)
The18thmeetingoftheEighthBoardofDirectors	December16,2022	December17,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-44)
The19thmeetingoftheEighthBoardofDirectors	December30,2022	December31,2022	http://www.cninfo.com.c(AnnouncementNo.:2022-48)

2.Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders

Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders
Nameofdirector	Numberofboardmeetingsattendedduringthereportingperiod	Numberofboardmeetingsattendedinperson	Numberofboardmeetingsattendedbymeansofcommunication	Numberofboardmeetingsattendedbyproxy	Numberofboardmeetingsabsentfrom	Whethertoattendtheboardmeetinginpersontwiceinarow	Generalmeetingsofshareholdersattended
YinKefei	10	10	0	0	0	No	3
ZhuMeizhu	10	10	0	0	0	No	3
NingMaozai	10	10	0	0	0	No	3
HeFei	10	10	0	0	0	No	3
SunMinghui	10	9	0	1	0	No	3
HeZhuowen	10	4	6	0	0	No	3
CaiYunqing	10	4	6	0	0	No	3
WangKai	10	4	6	0	0	No	3
WangChuan	3	3	0	0	0	No	0
ZhangJian	4	4	0	0	0	No	2

ExplanationoffailuretoattendtheboardmeetinginpersontwiceinarowNone

3.Directors'objectionstorelatedmattersoftheCompanyWhetherthedirectorraisesanyobjectiontotherelevantmattersoftheCompany

□Yes√NoDuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompany.

4.Otherdescriptionsofdirectors'performanceofdutiesWhetherthedirectors'suggestionsontheCompanyhavebeenadopted

√Yes□NoThedirector'sstatementonwhethertherelevantsuggestionsoftheCompanyhavebeenadoptedornot

Duringthereportingperiod,alldirectorsoftheCompanyworkeddiligentlyandconscientiouslyinstrictaccordancewiththerelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,theArticlesofAssociation,theRulesofProcedureoftheBoardofDirectorsandothersystemsoftheCompany,paidcloseattentiontotheCompany'sstandardizedoperationandbusinesssituation,putforwardrelevantopinionsontheCompany'smajorgovernanceandbusinessdecisionsaccordingtotheactualsituationoftheCompany,reachedaconsensusafterfullcommunicationanddiscussion,andresolutelysupervisedandpromotedtheimplementationoftheresolutionsoftheBoardofDirectors,soastoensurescientific,timelyandefficientdecision-making,andprotectthelegitimaterightsandinterestsoftheCompanyandallshareholders.VII.SituationofspecialcommitteesundertheBoardofDirectorsduringthereportingperiod

Committeename	Memberinformation	Numberofmeetingsconvened	Conveningdate	Meetingcontent	Putforwardimportantopinionsandsuggestions	Otherinformationofdutyperformance	Detailsofobjections(ifany)
NominationCommitteeofthe	CaiYuanqing,	1	August3,2022	Deliberatethe	Agreeonthenomination

BoardofDirectors	HeZhuowen,WangKai			nominationofnon-independentdirectorsanddeputygeneralmanagersoftheCompany.	ofWangChuan'snon-independentdirectorsandtheappointmentofseniormanager.。
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	January18,2022	(I)Itcommunicatedontherelevantmattersbeforetheaudit;(II)TheRiskControlAuditDepartmentreportedtheinternalauditworkinthe4thquartertotheAudit	ItmadeamoreaccuratepredictionofthepossibleimpactofthetrialoperationincomeofLine7ontheCompany'sfinancialstatementsaftertheimplementationofthenewaccountingpolicy;TheRiskControlAuditDepartmentandFinanceDepartmentactivelycooperatedwithaccountantstocarryouttheirworkandothersuggestions.
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	February16,2022	TheAuditCommitteecommunicateswiththeannualauditorontheauditprogressandproblemsfoundduringtheaudit.	(I)Accordingtotherequirementsoftheannualaudit,allrelevantdepartmentsactivelycooperatedwithaccountantstoproviderelevantinformation,andtheFinanceDepartmentandSAPO

					Companyactivelycooperatedtofollowupthecollectionofresponseletters;(II)ItissuggestedthattheCompanysupplementtheinformationintimeandimprovethecorrespondingproceduresfortheproblemsconcernedintheauditprocess.
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	March10,2022	(I)HeZuowen,theconvenerofthemeeting,madeareportontheperformanceoftheauditcommitteein2021;(II)ItdeliberatedtheAnnualReportin2021,theFinancialFinalReportin2021,theProfitDistributionPlanin2021,theSelf-evaluationReportforInternalControlin2021andtheSpecialReportontheDepositandUseofRaisedFundsin2021.	ItisagreedtosubmittheproposaldeliberatedatthemeetingtotheeleventhmeetingoftheeighthBoardofDirectorsoftheCompanyfordeliberation.
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	April18,2022	ItlistenedtotheInternalAuditWorkSummaryfor	trecognizedtheinternalauditworkoftheRisk

				theFirstQuarterandtheInternalAuditWorkPlanfortheSecondQuarterof2022reportedbytheRiskControlAuditDepartment.	ControlAuditDepartmentinthefirstquarterof2022,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutauditworkaccordingtotherequirementsoftheannualinternalauditworkplanforthesecondquarterof2022.
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	August19,2022	ItlistenedtotheSummaryofInternalAuditintheSecondQuarterandtheWorkPlanfortheThirdQuarterof2022andtheSpecialInspectionReportonStandardizedOperationofListedCompaniesintheFirstHalfof2022reportedbytheRiskControlAuditDepartment,deliberatedtheproposaloftheSemi-annualReportin2022andputforwardrelevantrequirementsforinternalaudit.	(I)ItapprovedtheinternalauditworkoftheRiskControlAuditDepartmentinthesecondquarterof2022,andrequestedtheRiskControlAuditDepartmenttocontinuetheauditworkinthethirdquarterof2022accordingtotherequirementsoftheannualinternalauditworkplan;(II)TheproposaloftheSemi-annualReportin2022wasadopted.

Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	October9,2022	ItdeliberatedtheProposalonHiringAuditInstitutionsin2022.	ItisagreedthattheCompanywillhireDeloitteToucheTohmatsuCPALtd(specialgeneralpartnership)toprovideauditservicesfortheCompany.
Auditcommittee	HeZhuowen,CaiYuanqing,HeFei	7	November4,2022	ItlistenedtotheSummaryofAuditWorkintheThirdQuarterandtheInternalAuditWorkPlanintheFourthQuarterof2022reportedbytheRiskControlAuditDepartment,andputforwardrelevantrequirementsforinternalauditworkofRiskControlAuditDepartmentinthefourthquarter.	(I)ItapprovedtheinternalauditworkoftheRiskControlAuditDepartmentinthethirdquarterof2022,andrequestedtheRiskControlAuditDepartmenttocontinuetheauditworkinthefourthquarterof2022accordingtotherequirementsoftheannualinternalauditworkplan;(II)ItisconsideredthattheCompanyhasmaintainedeffectiveinternalcontroloverfinancialreportsandnon-financialreportsinallmajoraspectsinaccordancewiththerequirements

					oftheenterpriseinternalcontrolstandardsystemandrelevantregulations.
RemunerationandAppraisalCommittee	HeZhuowen,WangKai,HeFei	1	November14,2022	ItdeliberatedtheAnnualOperatingPerformanceAppraisalandSalaryManagementPlanforSeniorManagersofShenzhenTextile(Group)Co.,Ltd.in2021.	TheCommitteebelievedthattheformulationoftheAnnualOperatingPerformanceAppraisalandSalaryManagementPlanforSeniorManagersofShenzhenTextile(Holdings)Co.,Ltd.in2021conformedtotherelevantprovisionsoftheGovernanceGuidelinesofListedCompanies,theArticlesofAssociationoftheCompanyandtheWorkingRegulationsoftheRemunerationandAppraisalCommitteeoftheBoardofDirectors;
StrategicPlanningCommittee		1	October17,2022	ItdeliberatedtheProposalontheCompany's"14thFive-Year"Strategic	TheStrategicPlanningCommitteebelievesthattheCompany's14thFive-

Plan.

YearStrategicPlan,withthecriticality,balance,feasibilityandquantificationastheguidingprinciples,organicallycombinestheCompany'sdevelopmentvisionandindicators,implementsstrategicplanning,promotesin-depthdevelopment,andconstructsatargetsystemthatreflectstheCompany's"14thFive-Year"reformanddevelopmenteffectiveness;Thebusinessobjectivesaredesignedreasonably,thefinancialindicatorsarecalculatedscientifically,andtheconstructionplansofkeyinvestmentprojectsarebasicallyreasonable.ItsuggestedthemanagementoftheCompanytoactivelystriveforthesupportof

VIII.TheworkingstatusoftheboardofsupervisorsTheboardofsupervisorsfindsoutwhetherthecompanyhasrisksduringthemonitoringactivitiesduringthereportingperiod

□Yes√NoTheSupervisoryCommitteehasnoobjectiontothesupervisionmattersduringthereportingperiod.IX.Particularsaboutemployees.

1.Numberofstaff,professionalstructureandeducationalbackground

nationalpolicies,seriouslyorganizetheirimplementation,andconstantlyimprovethe"14thFive-Year"StrategicPlanincombinationwiththeCompany'sactualsituation.Numberofin-servicestaffoftheparentcompany(person)

Numberofin-servicestaffoftheparentcompany(person)	55
Numberofin-servicestaffofthemainsubsidiaries(person)	1,323
Thetotalnumberofthein-servicestaff(person)	1,575
Thetotalnumberofstaffreceivingremunerationinthecurrentperiod(person)	1,575
Retiredstaffwithchargespaidbytheparentcompanyandmainsubsidiaries(person)	0
Professional
Category		Numberofpersons（person）
Production	1,107
Sales	32
Technical	198
Financial	30
Administrative	208
Total	1,575
Education
Category	Numberofpersons（person）
Holdersofmaster’sdegreeorabove	44
Graduatesofregularuniversity	251
Colleges	155
Mid-schoolorbelow	1,125
Total	1,575

2.RemunerationpoliciesIn2022,theCompanycarriedoutmanagementforemployees’compensationinstrictaccordancewiththestate’srelevantlawsandregulationsandguaranteedthefairnessandreasonabilityofthecompensation,whichofferedrelevantrewardsandincentivestotheemployees,acceleratethemtojointlydevelopwiththeCompany,andsimultaneouslyreflectedhumanisticcareoftheCompany.

3.Trainingplan

CombinedwiththeCompany'sdevelopmentstrategy,continuetoimprovetheCompany'stalenttrainingsystemandstrengthentheexchangeandlearningofpersonnelintheShenzhenTextilesystem.First,improvethesystematictalenttrainingsystemtoprovidesolidsupportfortheCompany'sstrategicdevelopment.MainlythroughShenzhenTextileLecture,ShenzhenTextileGroupNetworkCollegeand"2022RegisteredSafetyEngineerTrainingCamp",createanew"order-based"cadretrainingmodel,createalearningorganization,andenhancethecorecompetitivenessoftheGroup.Second,establishasystematicenterprisetalentexchangemechanism,andcarryouttwo-wayexchangeandtrainingactivitiesforcadresandtalentsoftheGroupanditsaffiliatedenterprises,soastoenhancethecomprehensivebusinessabilityandperformanceabilityofemployeesandstimulatethevitalityofcadres.

4.Outsourcingsituation

□Applicable√NoApplicableX.SpecificationofprofitdistributionandcapitalizingofcommonreservesFormulation,implementationoradjustmentoftheprofitdistributionpolicy,especiallythecashdividendpolicyduringthereportingperiod

√Applicable□NotapplicableOnMay9,2022,theCompanyheldthe2020annualgeneralmeetingofshareholderstodeliberateandpassthe2021profitdistributionplan.The2021profitdistributionplanoftheCompanyisasfollows:basedontheprofitavailablefordistributionintheconsolidatedstatement,withthetotalsharecapitalof506,521,849sharesasthebaseasofDecember31,2021,acashdividendofRMB0.50(includingtax)willbedistributedtoallshareholdersforevery10shares,withatotalcashdividendofRMB25,326,092.45(includingtax),theremainingundistributedprofitswillbecarriedforwardtothenextyear;Nobonusshareswillbegiven,andnocapitalreservewillbeusedtoincreasecapital.IfthetotalsharecapitaloftheCompanychangesbeforetheimplementationofthedistributionplan,thetotalsharecapitalofdateofrecordwillbetakenasthebasewhenthedistributionplanisimplementedinthefuture,acashdividendofRMB0.50(includingtax)willbedistributedtoallshareholdersforevery10shares,andthespecificamountwillbesubjecttotheactualdistribution.TheCompany'ssharesheldbytheCompanyarenotincludedinprofitdistribution.Duringtheperiodfromthedisclosureofthedistributionplantoitsimplementation,ThetotalsharecapitaloftheCompanyhasnotchanged.

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)	0.6
Atotalnumberofsharesasthedistributionbasis(shares)	506,521,849
Cashdividendamount(yuan,includingtax	30,391,310.94
Othermeans(suchasrepurchaseofshares)cashdividendamount(yuan)	0.00
Totalcashdividend(yuan,includingtax)	0
Distributableprofit(yuan)	170,636,610.95
Proportionofcashdividendinthedistributableprofit	100%
Cashdividenddistributionpolicy
Whenthecompany'sdevelopmentstageisinthegrowthperiodandtherearemajorcapitalexpenditurearrangements,whentheprofitdistributioniscarriedout,theproportionofcashdividendsinthisprofitdistributionshouldbeatleast20%.
Detailedexplanationoftheprofitdistributionorcapitalreservetransferplan
Basedonthedistributableprofitsintheconsolidatedstatement,withthetotalsharecapitalof506,521,849sharesasofDecember31,2022asthebase,acashdividendofRMB0.60(includingtax)wasdistributedtoevery10sharesofallshareholders,withatotalcashdividendofRMB30,391,310.94(includingtax).Nobonusshareswillbeissuedandnocapitalreservewillbeconvertedintosharecapital.Ifthereisachangeinthetotalsharecapitalofthecompanybeforetheimplementationofthedistributionplan,thetotaldistributionamountshallbeadjustedbasedonthetotalsharecapitalontheequityregistrationdatewhenthedistributionplanisimplementedinthefuture,andtheabovedistributionproportionshallbekeptunchanged.Thespecificamountshallbesubjecttotheactualdistribution.

XI.ImplementationSituationofStockIncentivePlanoftheCompany,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures

√Applicable□Notapplicable

1.EquityincentiveNotapplicableEquityincentivesobtainedbydirectorsandseniormanagersoftheCompany

□Applicable√NotapplicableEvaluationmechanismandincentivesofseniormanagersNotapplicable

2.ImplementationofESOP

√Applicable□NotapplicableAlleffectiveESOPsduringthereportingperiod

Scopeofemployees	Quantityofemployees	Totalnumberofsharesheld	Changeinformation	Proportionoftotalsharecapitaloflistedcompanies	Fundingsourcesforplanimplementation
Directors,supervisors,seniormanagersandothercoretechnical/business/managementbackbonesoftheCompany(includingsubsidiaries,thesamebelow).	126	1,403,600	AsofSeptember6,2022,theAsharesoftheCompanyheldbythefirstemployeestockownershipplanoftheCompanyhaveallbeenreduced.	0.28%	TheCompanyemployees'legalremuneration,self-raisedfundsandotherlegalwayspermittedbylawsandregulations.

Shareholdingofdirectors,supervisorsandseniormanagersintheESOPduringthereportingperiod

Name	Position	Numberofsharesheldatthebeginningofthereportingperiod	Numberofsharesheldattheendofthereportingperiod	Proportionoftotalsharecapitaloflistedcompanies
ZhangJian	Originalchairman	114,206	0	0.00%
ZhuMeizhu	Director,GeneralManager	114,206	0	0.00%
NingMaozai	Director,ViceSecretaryofPartyCommitteea	28,551	0	0.00%
LiuHonglei	DeputyGM	57,103	0	0.00%
HeFei	Director,CFO	57,103	0	0.00%
JiangPeng	SecretaryoftheBoard	57,103	0	0.00%
ZhanLumei	Employeesupervisor	17,131	0	0.00%

Changesinassetmanagementinstitutionsduringthereportingperiod

□Applicable√NotapplicableChangesinequitycausedbyholders'disposalofsharesduringthereportingperiod

√Applicable□NotapplicableDuringthereportingperiod,allthesharesheldbythefirstemployeestockownershipplanoftheCompanywerereducedbycentralizedbidding.AccordingtotherelevantprovisionsoftheAdministrativeMeasuresfortheFirstEmployeeStockOwnershipPlanandtheFirstEmployeeStockOwnershipPlanofShenzhenTextile(Group)Co.,Ltd.,theemployeestockownershipplaninthisphasehasbeenimplementedandterminatedaheadofschedule,andtheCompanyhascompletedtheliquidationandincomedistributionofrelatedassetsinaccordancewiththeprovisionsoftheemployeestockownershipplaninthisphase.Fordetails,pleaserefertotheAnnouncementonCompletionandEarlyTerminationoftheFirstEmployeeStockOwnershipPlan(No.2022-34)disclosedbytheCompanyonCNINF(http://www.cninfo.com.cn)onSeptember8,2022.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√NoXIII.ManagementandcontroloftheCompany'ssubsidiariesduringthereportingperiod

Companyname	Integrationplan	Integrationprogress	Problemsencounteredinintegration	Measurestakenforsolution	Solutionprogress	Subsequentplannedsolution
Notapplicable	Notapplicable	Notapplicable	Notapplicable	Notapplicable	Notapplicable	Notapplicable

XIV.Internalcontrolself-evaluationreportorinternalcontrolauditreport

1.Self-evaluationreportoninternalcontrol

Disclosuredateofappraisalreportoninternalcontrol	April4,2023
Disclosureindexofappraisalreportoninternalcontrol	JuchaoWebsite:（http://www.cninfo.com.cn）,Self-evaluationreportofinternalcontrolin2022
Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements	100.00%
Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements	100.00%
StandardsofDefectsEvaluation
Category	FinancialReport	Non-financialReport
Qualitativestandard	Defectsrelatedtofinancialreportingcanbedividedintogeneraldefects,importantdefects,andsignificantdefectsaccordingtotheirseverity."Majordefect"referstoacombinationofoneormorecontroldefectsthatmaycauseanenterprisetoseriouslydeviatefromitscontrolobjectives."Significantdefect"referstoacombinationofoneormorecontroldefects,whoseseverityandeconomicconsequencesarelowerthanthoseofsignificantdefects,butmaystillleadtoadeviationoftheenterprisefromitscontrolobjectives.Generaldefectsrefertootherinternalcontroldefectsthatdonotconstitutesignificantdefectsorsignificantdefects.	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,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects.
Quantitativecriteria	Misstatementamountoffinancialstatementfellintothefollowingintervals:significantdefects:Misstatementamount≥1.5%oftotalrevenue;Misstatementamount≥10%ofgrossprofit;Misstatementamount≥5%ofnetasset.significantdefects:0.5%ofTotalrevenue≤Misstatementamount＜1.5%oftotalrevenue;5%ofgrossprofit≤Misstatementamount＜10%ofgrossprofit;3%ofNetassets≤Misstatementamount＜5%ofnetassets.Generaldefects:0%oftotalrevenue＜Misstatementamount＜0.5%ofTotalrevenue;2%ofgrossprofit＜	Notapplicable

	Misstatementamount＜5%oftotalprofit;0%ofnetassets＜Misstatementamount＜3%ofnetassets.
Numberofmajordefectsinfinancialreporting（a）	0
Numberofmajordefectsinnonfinancialreporting(a)	0
Numberofimportantdefectsinfinancialreporting（a）	0
Numberofimportantdefectsinnonfinancialreporting（a）	0

2.InternalControlauditreport

√Applicable□Notapplicable

Reviewopinionsintheinternalcontrolauditreport
AsofDecember31,2022,ShenzhenTextileGrouphasmaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicStandardsforEnterpriseInternalControlandrelevantregulations.
Disclosuredateofauditreportofinternalcontrol	Disclosure
Indexofauditreportofinternalcontrol	April4,2023
Internalauditreport’sopinion	JuchaoWebsite:（http://www.cninfo.com.cn）
Typeofauditreportoninternalcontrol	Unqualifiedauditor’sreport
Whetherthereissignificantdefectionnon-financialreport	No

HastheCPAsissuedaqualifiedauditor’sreportofinternalcontrol.

□Yes√NoDoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardofDirectors

√Yes□No

V.Environmental&SocialResponsibilityI.SignificantenvironmentalissuesWhethertheCompanyoranyofitssubsidiariesisidentifiedasakeypolluterbytheenvironmentauthorities

√Yes□NoPoliciesandindustrystandardsrelatedtoenvironmentalprotection(I)SAPOPhotoelectric:

1.Namesofimplementationstandardsforairpollutantemission:

①EmissionStandardofAirPollutantsforCoal-burningOil-burningGas-firedBoiler(DB44/765-2019);

②EmissionLimitofAirPollutantsDB44/27—2001;

③ThelimitvalueofelectroniccomponentsintheelectronicindustryinTianjin'sEmissionControlStandardforVolatileOrganicCompoundsinIndustrialEnterprises(DB12/524-2020)shallbeimplemented;

④EmissionStandardsforOdorPollutants(GB14554-93),StandardforFugitiveEmissionofVolatileOrganicCompounds(GB37822-2019).

2.Namesofimplementationstandardsforwaterpollutantdischarge:

①DischargeLimitStandardforWaterPollutantsinGuangdongProvince(DB44/26-2001)

(II)BeautyCentury

1.RegulationsofGuangdongProvinceonEnvironmentalProtection

2.AdministrativeMeasuresforEcologicalEnvironmentStandardsEnvironmentalprotectionadministrativelicense(I)SAPOPhotoelectric:TheexistingsewagedischargepermitwasappliedonSeptember7,2022,andisvalidfromDecember13,2022toDecember12,2027.(II)BeautyCentury:TheexistingsewagedischargepermitisvalidfromAugust10,2020toAugust9,2023.Industrialemissionstandardsandthespecificsituationofthepollutantemissioninvolvedintheproductionandbusinessactivities

Companyorsubsidiaryname	MainpollutantandspecificpollutantTypeame	Mainpollutantandspecificpollutantname	Emissionway	Emissionportnumber	Emissionportdistributioncondition	Emissionconcentration(mg/Nm3)	Implementedpollutantemissionstandards	Totalemission	Verifiedtotalemission(Tons)	Excessiveemissioncondition
SAPOPhotoelectric	Wastegases	Nonmethanehydrocarbon	Highaltitudeemission	4	ThedischargeportislocatedontheeastsideofNo.1andNo.3plantsroof	<50mg/m3	120mg/m3	21.9t/a	49.98t/a	No

SAPOPhotoelectric	Effluents	COD	Opentrenchdischargeaftertreatment	1	Southeastsideofthefactory	<20mg/L	40mg/L	3.9347/a	25.0536/a	No
BeautyCentury	Effluents	COD,ammonianitrogen,PHvalue,suspendedsolids,five-dayBOD,totalphosphorus(calculatedasP),chromaticity,aniline,chlorinedioxide,sulfide,totalnitrogen(calculatedasN),ammonia(ammoniagas),non-methanetotalhydrocarbons,sulfideandodor(concentration)	Atmosphere:unorganized;wastewater:1.Intermittentdischarge,withunstableandirregularflowrateduringdischarge,whichhoweverisnotimpactdischarge;2.Intermittentdischarge,withstableflowduringdischarge	1	22°43′38.14″Longitude:114°15′31.36″Latitude:22°43′38.14	Permissibledischargevalue:PHvalue:6-9;Aniline:1.0mg/L;Suspendedsolids:50mg/L;Totalnitrogen(calculatedasN)15mg/L;Ammonianitrogen:8mg/L;Sulfide:0.5mg/L;Chemicaloxygendemand:60mg/L;Chlorinedioxide:0.5mg/L;Chromaticity50;Five-dayBOD:20mg/L;Totalphosphorus(calculatedasP)0.5mg/L;	DischargeLimitStandardforWaterPollutantsDB44/26-2001,DischargeStandardofWaterPollutantsinDanshuiRiverandShimaRiverBasinDB44/2050-2017,DischargeStandardofWaterPollutioninDyeingandFinishingTextileIndustryGB4287-2012GB4287-2012.	Ammonianitrogen:0.27t/a;Totalnitrogen(calculatedasN)6.75t/a;Totalphosphorus(calculatedasP)0.0135t/a	Ammonianitrogen:0.27t/a;Totalnitrogen(calculatedasN)6.75t/a;Totalphosphorus(calculatedasP)0.0135t/a	No

Thetreatmentofthepollutants（I）SAPOPhotoelectricRTOwastegasregenerativeincinerationprocessisadoptedfortheorganicwastegasproducedinallproductionlinesofSAPOPhotoelectric,andRTO+advancedtreatmentprocessisadoptedforLine7.RTOwastegastreatmentequipmentrunsstably,withgoodwastegastreatmenteffect.TheremovalrateofVOCsinorganicwastegasreachesover99%,whichcanfullymeettherequirementsofwastegasdischarge.Meanwhile,importedheatstoragematerialsareadoptedfortheequipment,withaheatstorageeffectof90%,andlowrunningenergyconsumptionoftheequipment;AfterRTOtreatment,thewastegasfromtheproductionprocessaftertreatmentcanmeetthedischargestandard.ThewastewatertreatmentfacilityofSAPOPhotoelectricPhaseIadoptsthewastewatertreatmentprocessofFenton+sedimentation+UASBanaerobic+aerobic+MBRmembrane,whichhasstrongimpactloadresistance,stablesystemoperation,lowenergyconsumption,lowmaintenancecost,highdegreeofautomationandgoodeffluenteffect.InphaseII,itadoptsFenton+sedimentation+UASBanaerobic+aerobic+MBRmembrane+mcmembranetreatment+evaporationsystem,andallthewastewaterisrecycledtotheproductionlineaftertreatment.AllthewastewaterofSAPOPhotoelectriccanmeettheenvironmentalprotectionrequirementsafterbeingtreatedbythetreatmentfacilities.（II）BeautyCentury

BeautyCenturyhasestablishedasetofspecialwastewatertreatmentfacilities,andcontinuouslyoptimizedandupgradedthefacilitiesandprocessesintheactualoperationprocesstotreatthewastewaterprofessionallythroughmultipleprocesses,withgoodoperationeffect,andallpollutantindicatorsinlinewithrelevantstandards,lawsandregulations.Inaddition,ShenzhenBeautyCenturybuiltthereclaimedwaterreusesystemin2021,whichcaneffectivelysavewaterconsumptionandreducewastewaterdischargeafterthesystemwasputintooperation.EnvironmentalSelf-MonitoringProgram（I）SAPOPhotoelectricAccordingtothemonitoringrequirementsissuedbythemonitoringstationandtheoperationrequirementsofeachsystemofSAPOPhotoelectric,thespecificmonitoringplanisasfollows:8times/year(twiceeveryquarter)fororganicwastegas,4times/year(onceeveryquarter)forwastewaterdischarge,2times/year(onceeverysixmonths)forboilerwastegas,1time/yearforcanteenoilfume,2times/year(onceeverysixmonths)fornoiseatfactoryboundaryand1time/yearfordrinkingwater.（II）BeautyCentury

1.ImplementemissionstandardsandlimitsThesewageandwastewaterproducedduringtheoperationofBeautyCenturyismainlyindustrialwastewaterfromdyeingworkshops.Afterbeingcollected,theindustrialwastewaterenterstheself-builtwastewatertreatmentstationintheplantareaforcentralizedtreatment,toreachthestrictervaluesintheDischargeStandardofWaterPollutantsforDyeingandFinishingTextileIndustry(GB4287-2012)andtheDischargeStandardofWaterPollutantsinDanshuiRiverandShimaRiverBasin(DB44/2050-2017),asshowninTable1.

Table1DischargeStandardofProductionWastewaterUnit:mg/L(pHdimensionless)

S/N	Pollutant	Dischargelimit	Monitoringpositionofpollutantdischarge
1	pH	6~9	Totalsewageoutlet
2	Aniline	1.0

3	Suspendedsolids	50
4	Totalnitrogen	15
5	Ammonianitrogen	8
6	Sulfide	0.5
7	CODCr	60
8	Chlorinedioxide	0.5
9	Chromaticity	50
10	Five-dayBOD	20
11	Totalphosphorus	0.5

2.Monitoringindicatorsandfrequency

①WastewaterThemonitoringindicatorsandfrequencyofindustrialwastewateraredeterminedaccordingtotherequirementsofenvironmentalmanagement,asshowninTable2.Table2MonitoringIndicatorsandFrequencyofIndustrialWastewater

Monitoringpoint	Monitoringindicator	Monitoringfrequency
DW001	PHvalue,flowrate,COD,ammonianitrogen	Automaticmonitoring
	Chromaticity,suspendedsolids,totalnitrogenandtotalphosphorus	1time/day
	Five-dayBOD	1time/week
	Sulfide,aniline,	1time/month
	Chlorinedioxide	1time/year

②WastegasThemonitoringindicatorsandfrequencyofwastegasatboundaryaredeterminedaccordingtotherequirementsofenvironmentalmanagement,asshowninTable3Table3MonitoringIndicatorsandFrequencyofWasteGasatBoundary

Monitoringpoint	Monitoringindicator	Monitoringfrequency
Boundary	Concentrationofammonia,non-methanehydrocarbon,sulfideandodor	1timeeverysixmonths

3.SamplingandmonitoringmethodsThewastewaterisentrustedtoathird-partytestinginstitutionfortesting.Thedailytestingoftotalnitrogenandtotalphosphorusinwastewater,theweeklytestingofBODandthemonthlytestingofsulfideareallperformedbytestpaper.Thewastegasisentrustedtoathird-partytestinginstitutionfortesting.Refertorelevantnationalstandardsforthemonitoringandanalysismethods.

4.MonitoringqualityassuranceandcontrolmeasuresThequarterlymonitoringofwastewaterandthesemi-annualmonitoringofwastegasinBeautyCenturyareentrustedtoathird-partymonitoringunit.BeautyCenturyhasasoundenvironmentalmanagementinstitutionsystem,establishedarelativelycompleteenvironmentalmanagementsystem,andformulatedaseriesofenvironmentalmanagementsystems,suchas

environmentalmanagementsystem,emergencymeasuresforenvironmentalaccidents,energy-savingmanagementregulations,andsolidwastemanagementsystem.Emergencyplanforsuddenenvironmentalevents(I)SAPOPhotoelectricAccordingtotheactualsituationofthecompany,theemergencyplanforsuddenenvironmentalincidentshasbeencompiled,andtheapplicationforfilingtheemergencyplanforsuddenenvironmentalincidentsbyrelevantdepartmentshasbeenpassed.（II）BeautyCenturyAccordingtotheactualsituationofthecompany,theemergencyplanforsuddenenvironmentalincidentshasbeencompiled,andtheapplicationforfilingtheemergencyplanforsuddenenvironmentalincidentsbyrelevantdepartmentshasbeenpassed.Investmentinenvironmentalgovernanceandprotectionandtherelevantpaymentofenvironmentalprotectiontax(I)SAPOPhotoelectricInvestmentinenvironmentalgovernanceandprotectionin2022:RMB22,657,100;Environmentalprotectiontaxpaidin2022:RMB40,417.（II）BeautyCenturyInvestmentinenvironmentalgovernanceandprotectionin2022:RMB1,100,000;Environmentalprotectiontaxpaidin2022:RMB41,352,500.Costofpurchasingenvironmentalliabilityinsurance:RMB12,116.85.Measurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffects?Applicable□Notapplicable(I)SAPOPhotoelectricDuringthereportingperiod,SAPOPhotoelectricstrictlyabidedbylawsandregulations,strictlycontrolledthecompany'swastegasandwastewaterdischarge,andensuredtheeffectiveoperationofwastegasandwastewatertreatmentfacilities.Noviolationsoccurredthroughouttheyear.（II）BeautyCenturyDuringthereportingperiod,ShenzhenBeautyCenturystrictlyabidedbylawsandregulations,strengthenedthemanagementofwastewatertreatment,andensuredtheeffectiveoperationofwastewatertreatmentfacilities.Noviolationsoccurredthroughouttheyear.Administrativepenaltiesforenvironmentalproblemsduringthereportingperiod

Nameofcompanyorsubsidiary	Reasonsforpunishment	Violationsituation	Penaltyresult	Impactontheproductionandoperationoflistedcompanies	Company'srectificationmeasures
SAPOPhotoelectric	No	No	No	No	No
BeautyCentury

OtherEnvironmentalInformationThatShouldBeDisclosed(I)SAPOPhotoelectric

1.Annualreportondisclosureofenterpriseenvironmentalinformationaccordingtolaw:https://www-app.gdeei.cn/stfw/index

2.Annualimplementationreportofpollutantdischargepermit:http://permit.mee.gov.cn/(II)BeautyCenturyNoneOtherEnvironmentalRelatedInformationNoneII.Socialresponsibilities(I)Protectionofshareholders'rightsandinterestsDuringthereportingperiod,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.(II)Protectionofemployees'rightsandinterestsAccordingtotheenterprisedevelopmentstrategy,theCompanyfurtherrevisedandimprovedthehumanresourcemanagementsystem.Itestablishedlaborrelationsbyenteringintolaborcontractswithemployees,andimplementnecessarymanagementforemployeesaccordingtotheLaborLawandrelevantmanagementregulationsoftheCompany.TheCompanyestablishedascientificassessmentanddistributionsystemaccordingtotheclassificationofseniormanagers,departmentmanagersandemployees,establishedasystematicandstandardizedperformanceassessmentandevaluationsystem,andconductedacomprehensive,objective,fairandaccurateassessmentofemployees'performanceofdutiesandtasks,whichisusedasthebasisfordeterminingemployees'remunerations,rewardsandpunishmentsandappointments.Itconductedmarket-basedselectionandemployment,createdagoodenvironmentfortalentdevelopment,andconstantlystimulatedinnovationvitalityandmotivation.In2022,theCompanystrivedtocreateagoodcorporatecultureatmosphere,strengthenthepsychologicalcarefor

employees,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.(III)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.(IV)Protectionofconsumers'rightsandinterestsTheCompanyhasbeenadheringtothecorevaluesof"honestyorientedandresponsibilityfirst".Beingresponsibleforcustomersisthesourceofourenterprisevalue.Itisourunremittingpursuittoprovidecustomerswithprofessional,personalizedandall-roundproductsandservices.Withcustomerdemandasthecore,continuouslyinnovatingtoservecustomers,andcontinuouslyimprovingandenhancingproductqualityarethedrivingforcefortheCompanytoachievegoodperformanceandsustainabledevelopment,andalsoanimportantguaranteetowincustomers'long-termtrust.Ithasprovidedactiveattentiontocustomerneeds,quickresponsetocustomerfeedback,sincereconsiderationforcustomersandpromotionoflong-termcooperativepartnership.III.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationIn2022,thecompanyearnestlyfulfilleditssocialresponsibility,activelyparticipatedintheworkofconsumerassistance,andcompletedthepurchaseof555,300yuanofconsumerassistanceintheyeartohelpruralrevitalization;InresponsetotheinitiativeofShenzhenInvestment&Control2022"Investment&ControlwithLove·HelpingPeople'sLivelihood1+1"themepublicwelfareactivity,thecompanydonated381setsofthermalunderweartopoverty-strickenareasinGuangxi,demonstratingitscorporateresponsibility.

VI.ImportantEventsI.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
Commitmentmadeupontheassetsreplacement	TheCompany	StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided	Commitmentsmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothecompanyorinvestors,theCompanywillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontorelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsor	December30,2022	Sustainedandeffective	UnderFulfillment

			photocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheCompanyguaranteestheauthenticityandrationalityoftherelevantdataquotedinthistransactionplan.Asofthesigningdateofthistransactionplan,theauditandevaluationrelatedtothistransactionhavenotbeencompleted.Theauditedfinancialdata,evaluationorvaluationresultsoftheunderlyingassetsandtheauditedprofitforecastdata(ifinvolved)willbedisclosedintheRestructuringReport.Theauditedfinancialdataoftheunderlyingassetsmaybequitedifferentfromthedisclosureoftheplan;4.Duringthistransaction,theCompanywilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation.
Commitmentmadeupontheassetsreplacement	Allthedirectors,supervisorsandseniormanagersofthecompany	StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided	Commitmentsmadeduringassetrestructuring:1.Therelevantinformationprovidedbymeduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andIwillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothecompanyorinvestors,Iwillbeliableforcompensationaccordingtolaw.2.Iwillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothecompanyandrelevantintermediariesinatimelymanner,andatthesametimeIpromisethattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesare	December30,2022	Sustainedandeffective	UnderFulfillment

			consistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions.3.Duringthistransaction,Iwilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation.4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbyme,Iwillsuspendthetransferofthesharesinthecompanybeforetheconclusionofthecaseinvestigationisdetermined,andsubmitawrittenapplicationforsuspensionofthetransferandthestockaccounttotheboardofdirectorsofthecompanywithintwotradingdaysafterreceivingthenoticeoffilingtheinvestigation,andtheboardofdirectorsofthecompanywillapplytotheShenzhenStockExchangeandShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(hereinafterreferredtoas"CSDC")forlocking;Iftheapplicationforlockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthecompanyisauthorizedtodirectlysubmitmyidentityinformationandaccountinformationtoShenzhenStockExchangeandCSDCafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmitmyidentityinformationandaccountinformationtoShenzhenStockExchangeandCSDC,ShenzhenStockExchangeandCSDCareauthorizedtodirectlylocktherelevantstocks.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,Ipromisetolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors.
Commitmentmadeupon	Allthedirectors,supervisors	StatementandCommitm	Commitmentsmadeduringassetrestructuring:1.Therearenofalserecords,misleading	December30,2022	Sustainedandeffective	UnderFulfillment

theassetsreplacement	andseniormanagersofthecompany	entonNoIllegalActs	statementsormajoromissionsintheapplicationdocumentsforthistransaction;2.Therightsandinterestsofthelistedcompanyarenotseriouslydamagedbythecontrollingshareholderoractualcontrollerandhavenotbeeneliminated;3.Thelistedcompanyanditssubsidiariesdonotprovideexternalguaranteesinviolationofregulationsandhavenotbeenlifted;4.Thelistedcompany'sfinancialstatementsforthelatestyearandthefirststagehavenoauditreportswithqualifiedopinions,negativeopinionsordisclaimerofopinionsissuedbycertifiedpublicaccountants;5.Thelistedcompanyanditscurrentdirectors,supervisorsandseniormanagershavenotbeensubjectedtoadministrativepunishmentbytheChinaSecuritiesRegulatoryCommissioninthelast36months,andnorhavetheybeenpubliclycondemnedbythestockexchangeorfoundwithothermajoractsofdishonestyinthelast12months;6.ThelistedcompanyanditscurrentdirectorsandseniormanagershavenotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations,includingbutnotlimitedtoreceivingorforeseeingthedecision/noticeoffilinginvestigationbythejudicialauthorities,thenoticeoffilinginvestigationbytheChinaSecuritiesRegulatoryCommissionanditsdispatchedinstitutions,andtheadvancenoticeofadministrativepunishment,andthereisnoadministrativepunishment(exceptthoseobviouslyunrelatedtothesecuritiesmarket)orcriminalpunishment;7.Thelistedcompanyhasnoothercircumstancesthatseriouslydamagethelegitimaterightsandinterestsofinvestorsandsocialpublicinterests;8.Thedirectors,supervisorsandseniormanagersofthelistedcompanydonotdisclosetherelevantinsideinformationofthistransactionandusetheinsideinformationforinsidertrading.
Commitmentmadeupontheassetsreplacement	Allthedirectors,supervisorsandseniormanagersofthecompany	ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle	Commitmentsmadeduringassetrestructuring:Thelistedcompany,itsdirectors,supervisors,seniormanagersandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationonsuspicionofinsidertradingrelatedtothistransaction;	December30,2022	Sustainedandeffective	UnderFulfillment

		13oftheGuidanceonSupervisionofListedCompaniesNo.7-SupervisionofAbnormalTradingofStocksRelatedtoMajorAssetRestructuringofListedCompanies.	Inthelast36months,theyhavenotbeenpunishedbytheChinaSecuritiesRegulatoryCommissionorinvestigatedbythejudicialorgansforcriminalresponsibilityaccordingtolawforinsidertradingrelatedtomajorassetrestructuringoflistedcompanies,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies.
Commitmentmadeupontheassetsreplacement	Allthedirectors,supervisorsandseniormanagersofthecompany	ExplanationonWhetherThereisaReductionPlan	Commitmentmadeduringassetrestructuring:Fromthedateofresumptionoftradingtothecompletionofthistransaction,ifIholdsharesofthelistedcompany,Ihavenoplanstoreducethesharesofthelistedcompany.	December30,2022	Sustainedandeffective	UnderFulfillment
Commitmentmadeupontheassetsreplacement	ShenzhenInvestmentHoldingsCo.,Ltd.	StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided	Commitmentmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theCompanywillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthentic	December30,2022	Sustainedandeffective	UnderFulfillment

			andvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.Duringthistransaction,theCompanywilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation;4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbytheEnterprise,theEnterprisewillsuspendthetransferofshareswithinterestsinthelistedcompany,andsubmitthewrittenapplicationforsuspensionoftransferandthestockaccounttotheboardofdirectorsofthelistedcompanywithintwotradingdaysafterreceivingthenoticeoffilingtheinvestigation,andtheboardofdirectorsofthelistedcompanywillapplytotheStockExchangeandtheDepositoryandClearingCompanyforlockingonitsbehalf;Iftheapplicationforlockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthelistedcompanyshallbeauthorizedtodirectlysubmittheidentityinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompanyafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmittheidentityinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompany,theStockExchangeandtheDepositoryandClearingCompanyareauthorizedtodirectlylocktherelevantshares.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,theEnterprisepromisestolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors.
Commitmentmadeupontheassets	ShenzhenInvestmentHoldingsCo.,Ltd.	CommitmentonComplianceand	Commitmentmadeduringassetrestructuring:1.TheCompanyhasnotbeensubjectedtoadministrativepunishment(exceptthoseobviously	December30,2022	Sustainedandeffective	UnderFulfillment

replacement		Integrity	unrelatedtothesecuritiesmarket)orcriminalpunishmentinthelastthreeyears;2.TheCompanyisingoodcredit,withnopubliccondemnationbythestockexchangeorothermajordishonestyinthelast12months;Inthelastthreeyears,theCompanyhasnotbeenplacedonfileforinvestigationbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheCompanydoesnotdisclosetherelevantinsideinformationofthistransactionorusetheinsideinformationforinsidertrading;4.TheCompanydoesnotinfringetherightsandinterestsofthelistedcompany;5.TheCompanyguaranteesthatitiswillingtobearcorrespondinglegalresponsibilitiesifitviolatestheabovestatementsandcommitments.
Commitmentmadeupontheassetsreplacement	ShenzhenInvestmentHoldingsCo.,Ltd.	ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle13oftheGuidanceonSupervisionofListedCompaniesNo.7-SupervisionofAbnormalTradingofStocksRelatedtoMajorAssetRestructuringofListedCompanies	Commitmentmadeduringassetrestructuring:ShenzhenInvestmentHoldingsandallitsdirectors,supervisors,seniormanagersandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationduetoinsidertradingrelatedtomajorassetrestructuring;Inthelast36months,theywerenotsubjectedtoadministrativepunishmentimposedbyChinaSecuritiesRegulatoryCommissionorinvestigatedforcriminalresponsibilitybyjudicialorgansaccordingtolaw,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies.	December30,2022	Sustainedandeffective	UnderFulfillment
Commitmentmadeupontheassetsreplacement	ShenzhenInvestmentHoldingsCo.,Ltd.	ExplanationonWhetherThereisaReductionPlan	Commitmentmadeduringassetrestructuring:Duringtheperiodfromthedateofresumptionofthisrestructuringtothecompletionofthisrestructuring,theCompanyhasnoplanstoreducethesharesoflistedcompany.	December30,2022	Sustainedandeffective	UnderFulfillment
Commitmen	QimeiMaterial,	Statementand	Commitmentmadeduringassetrestructuring:1.Therelevantinformation	December30,2022	Sustainedand	UnderFulfillmen

tmadeupontheassetsreplacement

HaoshengDanyang,DanyangRuoyan,XiamenRuoyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,lishuiHuahui,HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue

CommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided

providedbytheEnterpriseduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheEnterprisewillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theEnterprisewillbeliableforcompensationaccordingtolaw;2.TheEnterprisewillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheEnterpriseguaranteesthatithasfulfilleditsstatutorydisclosureandreportingobligationsonthistransaction,andtherearenocontracts,agreements,arrangementsorothermattersthatshouldbedisclosedbutnotdisclosed.TheEnterpriseisawareofthepossiblelegalconsequencesoftheabovecommitments,andwillbearcorrespondinglegalresponsibilitiesforactsthatviolatetheabovecommitments;4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbytheEnterprise,theEnterprisewillsuspendthetransferofshareswithinterestsinthelistedcompany,andsubmitthewrittenapplicationforsuspensionoftransferandthestockaccounttotheboardofdirectorsofthelistedcompanywithintwotradingdaysafterreceivingthenoticeoffiling

effective

t

			theinvestigation,andtheboardofdirectorsofthelistedcompanywillapplytotheStockExchangeandtheDepositoryandClearingCompanyforlockingonitsbehalf;Iftheapplicationforlockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthelistedcompanyshallbeauthorizedtodirectlysubmittheinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompanyafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmittheinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompany,theStockExchangeandtheDepositoryandClearingCompanyareauthorizedtodirectlylocktherelevantshares.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,theEnterprisepromisestolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors.
Commitmentmadeupontheassetsreplacement	HaoshengDanyang	CommitmentonComplianceandIntegrity	Commitmentmadeduringassetrestructuring:1.Thepenalties,regulatorymeasuresordisciplinaryactionssufferedbytheEnterpriseanditskeymanagementpersonnelinthelastfiveyearsareasfollows:(1)Mr.ChenRongsheng,theexecutivedirectoroftheEnterprise,receivedtheDecisiononTakingMeasurestoIssueWarningLetterstoCaiXiaoru,ChenRongsheng,LiuTieyingandHanYangissuedbyFujianSupervisionBureauofChinaSecuritiesRegulatoryCommission(DecisiononAdministrativeSupervisionMeasuresofFujianSupervisionBureauofChinaSecuritiesRegulatoryCommission[2020]No.6)onJanuary14,2020,duetothefailureofFuzhouDahuaIntelligentTechnologyCo.,Ltd.whereheservedasthegeneralmanagertodiscloseintimetheprogressofmajorequitytransfer,andthebreachofcontractforfailuretopayoffmajordebtsdue,theconclusionofimportantcontracts,andtheinsufficientbasisforimpairmentofavailable-for-salefinancialassets;(2)Mr.ChenRongsheng,theexecutivedirectoroftheEnterprise,receivedtheDecisiononGivinginformedcriticismtoFuzhouDahuaIntelligentTechnologyCo.,Ltd.andRelatedPartiesissuedbyShenzhenStockExchange(SZS[2019]No.311)onMay29,2019	December30,2022	Sustainedandeffective	UnderFulfillment

			duetothefailureFuzhouDahuaIntelligentTechnologyCo.,Ltd.whereheservedasthegeneralmanager,toreplytotheShenzhenStockExchange'sinquiryandmakedisclosurewithintheprescribedtimelimitasrequired.Inadditiontotheabovecircumstances,theEnterpriseanditsmainmanagementpersonnelhavenotbeensubjectedtoothercriminalpenaltiesoradministrativepenalties(exceptthoseobviouslyunrelatedtothesecuritiesmarket),administrativesupervisionmeasuresbytheChinaSecuritiesRegulatoryCommissionordisciplinaryactionsbythestockexchangeinthelastfiveyears,andthereisnomajorcivillitigationorarbitrationrelatedtoeconomicdisputes;2.Inthelastfiveyears,theEnterprisehasnotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheEnterpriseanditsmainmanagementpersonnelinthelastfiveyearshadnofailuretorepaylargedebts,ortofulfilltheircommitments;4.TheEnterpriseanditsmainmanagementpersonnelhavenotdisclosedtherelevantinsiderinformationofthistransactionorusedtheinsiderinformationforinsidertrading;5.TheEnterprisehasnoneofthefollowingcircumstances:(1)Ithasalargeamountofdebt,whichisnotpaidoffatmaturityandisinacontinuousstate;(2)Ithasmajorillegalactsorsuspectedmajorillegalactsinthelast3years;(3)Ithasseriousactsofdishonestyinthesecuritiesmarketinthelast3years;(4)OthercircumstancesstipulatedbylawsandadministrativeregulationsanddeterminedbyChinaSecuritiesRegulatoryCommissionthatitisnotallowedtoacquirelistedcompanies.
Commitmentmadeupontheassetsreplacement	HangzhouRencheng	CommitmentonComplianceandIntegrity	Commitmentmadeduringassetrestructuring:1.Thepenalties,regulatorymeasuresordisciplinaryactionsimposedontheEnterpriseanditsmainmanagementpersonnelinthelastfiveyearsareasfollows:(1)Ms.ZhangQiulireceivedtheDecisiononAdministrativePunishmentofChinaSecuritiesRegulatoryCommission(forLiShengkaiandZhangQiuliofFujianDaochongInvestmentManagementCo.,Ltd.)([2019]No.2)issuedbyChinaSecuritiesRegulatoryCommissiononJanuary18,2019duetothemanipulationofsecurities	December30,2022	Sustainedandeffective	UnderFulfillment

Commitmentmadeupontheassetsreplacement	QimeiMaterial,DanyangNuoyan,XiamenNuoyan,FuzhouXintou,HefeiBeicheng,XingheTechnology,LishuiHuahui,HuzhouPainuo,LishuiPengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue	CommitmentonComplianceandIntegrity	Commitmentmadeduringassetrestructuring:TheEnterpriseanditsmainmanagementpersonnelhavenotbeensubjectedtocriminalpenaltiesoradministrativepenalties(exceptthoseobviouslyunrelatedtothesecuritiesmarket)inthelastfiveyears,andthereisnomajorcivillitigationorarbitrationrelatedtoeconomicdisputes;2.Inthelastfiveyears,theEnterprisehasnotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheEnterpriseanditsmainmanagementpersonnelhadnofailuretorepaylargedebts,ortofulfilltheircommitments,andwerenotsubjectedtoadministrativesupervisionmeasuresbytheChinaSecuritiesRegulatoryCommissionordisciplinaryactionsbythestockexchangeinthelastfiveyears;4.TheEnterpriseanditsmainmanagementpersonnelhavenotdisclosedtherelevantinsiderinformationofthistransactionorusedtheinsiderinformationforinsidertrading;5.TheEnterprisehasnoneofthefollowingcircumstances:(1)Ithasalargeamountofdebt,whichisnotpaidoffatmaturityandisinacontinuousstate;(2)Ithadmajorillegalactsorsuspectedmajorillegalactsinthelast3years;(3)Ithadseriousactsofdishonestyinthesecuritiesmarketinthelast3years;(4)OthercircumstancesstipulatedbylawsandadministrativeregulationsanddeterminedbyChinaSecuritiesRegulatoryCommissionthatitisnotallowedtoacquirelistedcompanies.	December30,2022	Sustainedandeffective	UnderFulfillment
Commitmentmadeupontheassetsreplacement	Qimeimaterial,HaoshengDanyang,DanyangNouyan,XiamenNouyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,LishuiHuhui,	ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle13oftheGuidanceonSupervisionofListedCompaniesNo.7-Supervisionof	Commitmentmadeduringassetrestructuring:TheEnterpriseanditsmainmanagementpersonnel(includingdirectors,supervisorsandseniormanagementpersonnelinthecaseofacompany;orexecutivepartnersandkeymanagementpersonnelinthecaseofapartnership),thecontrollingshareholderandactualcontrolleroftheEnterpriseandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationduetoinsidertradingrelatedtomajorassetrestructuring;Inthelast36months,theywerenotsubjectedtoadministrativepunishmentimposedbyChinaSecuritiesRegulatoryCommissionorinvestigatedforcriminalresponsibilitybyjudicial	December30,2022	Sustainedandeffective	UnderFulfillment

	HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue	AbnormalTradingofStocksRelatedtoMajorAssetRestructuringofListedCompanies	organsaccordingtolaw,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies.
Commitmentmadeupontheassetsreplacement	Qimeimaterial,HaoshengDanyang,DanyangNouyan,XiamenNouyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,LishuiHuhui,HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue	ExplanationontheOwnershipoftheUnderlyingAssets	Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetshasbeenfullypaid,andthereisnofalsecapitalcontributionorwithdrawalofcapitalcontribution,andtheEnterprisehascompleteownershipofthetargetassets,withnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Theunderlyingassetsarenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteesthattheabove-mentionedstatewillcontinueuntilthetransferoftheunderlyingassetstothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.TheEnterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipofthe	December30,2022	Sustainedandeffective	UnderFulfillment

			above-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneofunresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise.
Commitmentmadeupontheassetsreplacement	HaoshengDanyang	ExplanationontheOwnershipoftheUnderlyingAssets	Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetshasbeenfullypaid,andthereisnofalsecapitalcontributionorwithdrawalofcapitalcontribution,andithascompleteownershipofthetargetassets,andthereisnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Exceptforthepledgeof267,857,146sharesoftheunderlyingcompanyheldbytheenterprise,theremainingunderlyingassetsheldbytheenterprisearenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteestoreleasetheaforementionedequitypledgebeforetheboardmeetingofthelistedcompanydeliberatesthereport(draft)ofthisrestructuring,andtomaintainthisstateafterthepledgeisreleaseduntilthetargetassetsaretransferredtothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.TheEnterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipoftheabove-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneof	December30,2022	Sustainedandeffective	UnderFulfillment

			unresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise.
Commitmentmadeupontheassetsreplacement	LishuiHuahui,XiamenZhifeng	ExplanationontheOwnershipoftheUnderlyingAssets	Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetswillbepaidinfullbeforeJanuary31,2023,andtherewillbenofalsecapitalcontributionorwithdrawalofcapitalcontribution,andtheEnterprisehascompleteownershipofthetargetassets,withnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Theunderlyingassetsarenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteesthattheabove-mentionedstatewillcontinueuntilthetransferoftheunderlyingassetstothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.TheEnterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipoftheabove-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneofunresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise.	December30,2022	Sustainedandeffective	UnderFulfillment
Commitmentmadeupon	HengmeiPhotoelectric	StatementandCommitm	Commitmentmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthis	December30,2022	Sustainedandeffective	UnderFulfillment

theassetsreplacement		entontheAuthenticity,AccuracyandCompletenessoftheInformationProvided	transactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theEnterprisewillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsofthepaperandelectronicmaterialsprovidedareauthentic,complete,accurateandreliable,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheCompanyguaranteesthatithasfulfilleditsstatutorydisclosureandreportingobligationsonthistransaction,andtherearenocontracts,agreements,arrangementsorothermattersthatshouldbedisclosedbutnotdisclosed.TheCompanyisawareofthepossiblelegalconsequencesoftheabovecommitments,andwillbearcorrespondinglegalresponsibilitiesforactsthatviolatetheabovecommitments.
Commitmentsmadeuponissuance	ShenzhenInvestmentHoldingsCo.,Ltd.	Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation	ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmay	October9,2009	Sustainedandeffective	UnderFulfillment

			constitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlynecessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority.
Commitmentsmadeuponissuance	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.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile.	July14,2012	Sustainedandeffective	UnderFulfillment
Executedtimelyornot?	Yes
Ifthecommitmentsfailedtocompletethe	Notapplicable

2.Theexistenceofthecompany'sassetsorprojectsearningsforecastsandearningsreportingperiodisstillintheforecastperiod,thecompanyhasassetsorprojectsmeettheoriginalprofitforecastmadeandthereasonsexplained

□Applicable√NotapplicableII.Particularsaboutthenon-operatingoccupationoffundsbythecontrollingshareholder

□Applicable√NotapplicableNoneIII.Illegalprovisionofguaranteesforexternalparties

□Applicable√NotapplicableNoneIV.ExplanationoftheBoardofDirectorsonthelatest"Non-standardAuditReport"

□Applicable√NotapplicableV.Notesfor“non-standardauditreport”ofCPAsfirmduringtheReportingPeriodbyboardofdirectorsandsupervisoryboard

□Applicable√NotapplicableVI.Explainchangeoftheaccountingpolicy,accountingestimateandmeasurementmethodsascomparedwiththefinancialreportingoflastyear.

√Applicable□NotapplicableFordetailsofthechangesintheCompany'saccountingpoliciesandaccountingestimatesandthecorrectionofaccountingerrorsinthepreviousperiod,see"(IV)Changesinimportantaccountingpoliciesandaccountingestimatesandthecorrectionofaccountingerrorsinthepreviousperiod"in"SectionXFinancialReport"ofthisreport.VII.Explainchangeoftheconsolidationscopeascomparedwiththefinancialreportingoflastyear.

□Applicable√NotapplicableNone..

VIII.Engagement/DisengagementofCPAsCPAscurrentlyengaged

NameofthedomesticCPAs	DeloitteToucheTohmatsuCPALtd.(specialgeneralpartnership)
Remunerationfordomesticaccountingfirm(Tenthousandsyuan)	190
SuccessiveyearsofthedomesticCPAsofferingauditingservices	0
NameofCPA	XuXiangzhao,YaoMing
Continuousyearsofauditservicesofcertifiedpublicaccountantsofdomesticpublicaccountingfirms	0

HastheCPAsbeenchangedinthecurrentperiod

√Yes□NoWhethertohireanaccountingfirmduringtheaudit

□Yes√NoWhetherthechangeofaccountingfirmhasfulfilledtheexaminationandapprovalprocedures

√Yes□NoDetailedExplanationoftheChangeofEmploymentandChangeofAccountingFirmTheauditservicecontractbetweenthecompanyandGrantThorntonCertifiedPublicAccountants(SpecialGeneralPartnership)(hereinafterreferredtoas"GrantThornton")hasexpired.Consideringthefuturebusinessdevelopmentofthecompanyandtheneedsofoverallaudit,thecompanyintendstohireDeloitteToucheTohmatsuCPALtd(SpecialGeneralPartnership)(hereinafterreferredtoas"Deloitte")astheauditinstitutionforthecompany'sannualfinancialstatementsandinternalcontrolin2022.TheCompanyhascommunicatedwithGrantThorntonandDeloitteinadvanceonrelatedmatters,andallpartieshaveclearlyknownthatthereisnoobjectiontothismatter.ThecompanyheldtheSixteenthmeetingoftheEighthBoardofDirectorsonOctober11,2022,andtheSecondExtraordinaryGeneralMeetingofShareholdersin2022onOctober28,2022,anddeliberatedandpassedtheProposalonHiringAuditInstitutionsin2022,agreeingtohireDeloitteastheauditserviceinstitutionforthecompany'sfinancialstatementsandinternalcontrolin2022,withatotalannualauditfeeofRMB1.9million(includingtax).Therelatedfinancialstatementauditfeein2022isRMB1,550,000(includingtax),andtheinternalcontrolauditfeein2022isRMB350,000(includingtax).IX.SituationofFacingListingSuspensionandListingTerminationaftertheDisclosureoftheYearlyReport

□Applicable√NotapplicableX.RelevantMattersofBankruptcyReorganization

□Applicable√NotapplicableNoneXI.MattersofImportantLawsuitandArbitration

√Applicable□Notapplicable

Basicsituationof

Amountinvolved

Whethertoform

Litigation(arbitration)progress

Litigation(arbitration

Implementationof

Disclosuredate

Disclosu

litigation(arbitration)	(Tenthousandyuan)	estimatedliabilities		)trialresultsandimpact	litigation(arbitration)judgments		reindex
JinhangFundv.SAPOPhotoelectricforDissolutionDispute	0	No	ThecasewasheardinPingshanDistrictPeople'sCourt,ShenzhenCity,GuangdongProvinceonJuly15,2022,andnojudgmenthasyetbeenmade.	Unfinishedtrial	Notexecuted	June24,2022	http://www.cninfo.com.cn）（AnnouncementNo.:2022-20
Disputeovertheconfirmationofthevalidityofcompanyresolutions	0	No	ThecasewasheardinPingshanDistrictPeople'sCourt,ShenzhenCity,GuangdongProvinceonSeptember22,2022,andnojudgmenthasyetbeenmade.	Unfinishedtrial	Notexecuted	August18,2023	http://www.cninfo.com.cn）（AnnouncementNo.:2022-25
Disputeovershareholders'righttoknow	0	No	ThecasewasheardinPingshanDistrictPeople'sCourt,ShenzhenCity,GuangdongProvinceonSeptember22,2022,andnojudgmenthasyetbeenmade.	Unfinishedtrial	Notexecuted	August18,2023	http://www.cninfo.com.cn）（AnnouncementNo.:2022-25
ArbitrationofcontractdisputebetweenSAPOPhotoelectricandKoreaNexteye	1,217.87	No	ThecasewasheardinShenzhenCourtofInternationalArbitrationonFebruary9,2022,andthesecondtrialwasheldonMay12,2022throughonlinevideo.Combinedwiththeactualsituationofthiscase,thearbitrationtribunalextendedthetrialperiodofthiscasefromJune13,2022toNovember11.OnNovember9,2022,thearbitrationtribunalmadeanaward[(2021)SGZSWCNo.3900],whichsupportedthepartialrequestofSAPOPhotoelectric	Finishedtrial	Underexecution		/
TheCompanyv.ShenzhenAdministrationforMarketRegulationforRevocationofCancellationofShenzhenXieli	0	No	ThecasewasheardinthesecondinstanceonApril27,2022.TheShenzhenIntermediatePeople'sCourtmadethejudgmentonJune28,2022:1.Revoketheadministrativejudgment[(2021)Y0308XCNo.1883]ofthePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvince;II.RemandtoYantianDistrictPeople'sCourt,	Unfinishedtrial	Notexecuted		/

			ShenzhenCity,GuangdongProvinceforretrial.OnJuly22,2022,thecompanyreceivedasummonsfromYantianDistrictPeople'sCourtinShenzhen,GuangdongProvince.ThecourtheardthecaseonSeptember29,2022,andmadeafirst-instancejudgmentonDecember31,2022,whichruledthattheCompanywonthecaseandcancelledtheadministrativeactofcancellationofregistrationinShenzhenXieli.Thethirdpersonintheoriginaltrial,HongKongXieliMaintenanceCompany,refusedtoacceptitandappealedtotheShenzhenIntermediatePeople'sCourtonJanuary10,2023.Therefore,thejudgmentofthefirstinstancedidnottakeeffect.Atpresent,theattorneyhasbeeninformedtoprepareforthesecondtrial.
ZhengWenhuiv.JintianIndustrial(Group)Co.,Ltd.andtheCompanyforHouseSalesContractDispute	0	No	ThecasewasheardinthefirstinstanceonFebruary24,2022.ShenzhenLuohuDistrictPeople'sCourtmadeajudgmentonApril20,2022:1.ConfirmthattheHouseSalesAgreementsignedbytheplaintiffZhengWenhuiandthedefendantJintianIndustrial(Group)Co.,Ltd.onMay28,2021islegalandvalid;II.DefendantsJintianIndustrial(Group)Co.,Ltd.andShenzhenTextile(Group)Co.,Ltd.shallassisttheplaintiffZhengWenhuiinhandlingthetransferformalitiesforRoom1-802ofTextileIndustryCompany,FenghuangRoad,LuohuDistrict,Shenzhen(RealEstateCertificateNo.:SFDZiNo.0042588).	Finishedtrial	Executed		/

			Thejudgmenthascomeintoeffect.
ManagerofShenzhenShenbaoTextileIndustryandTradeCo.,Ltd.v.TheCompany,ShenzhenYuanxingchangIndustrialCo.,Ltd.andSuXingbinforLiquidationLiabilityDispute	256.75	No	ThecasewasheardinthefirstinstanceonMay27,2022andJune30,2022.TheCompanywonthecaseinthefirstinstance,andtheplaintiffhasfiledanappeal,whichisstillpendinginthecourtofsecondinstance.	Unfinishedtrial	Notexecuted

XII.SituationofPunishmentandRectification

□Applicable√NotapplicableNoneXIII.CreditConditionoftheCompanyanditsControllingShareholdersandActualControllers

√Applicable□NotapplicableNosuchcasesintheReportingPeriod.XIV.Materialrelatedtransactions

1.Relatedtransactionsinconnectionwithdailyoperation

□Applicable√NotapplicableNone

2.Related-partytransactionsarisingfromassetacquisitionorsale

□Applicable√NotapplicableNone

3.Related-partytransitionswithjointinvestments

□Applicable√NotapplicableNone

4.Creditsandliabilitieswithrelatedparties

□Applicable√NotapplicableNone

5.Transactionswithrelatedfinancecompany,especiallyonethatiscontrolledbytheCompany

□Applicable√NotapplicableNone

6.TransactionsbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties

□Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties.

7.Othersignificantrelated-partytransactions

√Applicable□Notapplicable

TheCompanyintendstopurchase100%equityofHengmeiOptoelectronicsCo.,Ltd.byissuingsharesandpayingcash,andatthesametime,itplanstoraisematchingfundsfromnon-publicofferingofsharestonomorethan35qualifiedspecifictargets(hereinafterreferredtoas"thistransaction").Thistransactionconstitutesarelatedpartytransactionandisexpectedtoconstituteamajorassetrestructuring,butitdoesnotconstitutearestructuringandlisting,norwillitleadtothechangeoftheactualcontrollerofthecompany.Thewebsitetodisclosetheinterimannouncementsonsignificantrelated-partytransactions

Descriptionofprovisionalannouncement	Dateofdisclosingprovisionalannouncement	Descriptionofthewebsitefordisclosingprovisionalannouncements
AnnouncementofResolutionsofthe19thMeetingoftheEighthBoardofDirectors	December31,2022	（http://www.cninfo.com.cn）
Proposalonthe"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction	December31,2022	（http://www.cninfo.com.cn）
ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction	January30,2023	（http://www.cninfo.com.cn）
ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction	February28,2023	（http://www.cninfo.com.cn）

XV.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	42,228.53	Guaranteeingofjointliabilities			Twoyearsfromthedateofexpirationoftheprincipaldebt	No	No
Totalamountofapprovedexternalguaranteeinthereportperiod(B1)		0		Totalactuallyamountofexternalguaranteeinthereportperiod(B2)		1,315.79
Totalamountofapprovedexternalguaranteeattheendofthereportperiod(B3)		48,000		Totalactuallyamountofexternalguaranteeattheendofthereportperiod(B4)		42,228.53
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		Totalamountofguaranteeactually		1,315.79

		incurredinthereportingperiod（A2+B2+C2）
Totalguaranteequotaalreadyapprovedattheendofthereportingperiod（A3+B3+C3）	48,000	Totalbalanceoftheactualguaranteeattheendofthereportingperiod（A4+B4+C4）	42,228.53
TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4）%		14.82%
Including：
Amountofguaranteesprovidedforshareholders,theactualcontrollerandtheirrelatedparties(D)		0
Amountofdebtguaranteesprovideddirectlyorindirectlyforentitieswithaliability-to-assetratioover70%(E)		0
Proportionoftotalamountofguaranteeinnetassetsofthecompanyexceed50%（F）		0
Totalamountofthethreekindsofguaranteesabove(D+E+F)		0

Descriptionoftheguaranteewithcomplexmethod

3.SituationofEntrustingOthersforManagingSpotAsset

(1)SituationofEntrustedFinance

√Applicable□NotapplicableOverviewofentrustedwealth-managementduringthereportingperiod

InRMB10,000

Specifictype	Sourceoffundsforentrustedfinancialmanagement	TheOccurredAmountofEntrustedWealth-management	Unduebalance	Amountoverdue	Un-recoveredofoverdueamount
Bankfinancialproducts	Selffund	80,000,000	0	0	0
Other	Selffund	719,649,255.81	269,605,448.44	0	0
Total		799,649,255.81	269,605,448.44	0	0

Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal

√Applicable□Notapplicable

InRMB10,000

NameofTrusteeOrganiz

TypeofTrusteeOrganiz

ProductType

Amount

CapitalSource

StartDate

ExpiryDate

FundsAllocation

MethodofRewardDete

ReferenceAnnualized

ExpectedIncome(if

Actualprofitandloss

Theactualrecoveryof

Amountofprovisionfor

Whetherpassedthestatu

Whetherthereisanyentr

Summaryofeventsand

ation(orTrusteeName)	ation(orTrustee)							rmination	RateofReturn	any)	duringthereportingperiod	profitandlossduringthereportingperiod	impairment(ifany)	toryprocedure	ustedfinancialplaninthefuture	relatedsearchindex(ifany)
SouthernAssetsManagementCo.,Ltd.	Fund	Monetaryfund	300,000,000	Selffund	December16,2022		Other	RedemptiononTday,arrivalonT+1day	2.35%			Notexpired	0	Yes	Notapplicable
BankofChina,ShenzhenLuohuBranch	Bank	Structuraldeposits	300,000,000	Selffunds	June30,2022	December28,2022	Other	Alump-sumpaymentwhendue	3.70%	5,504,383.56	5,504,383.56	Redemptiondue	0	Yes	Notapplicable
Total			600,000,000	--	--	--	--	--	--	5,504,383.56	5,504,383.56	--	0	--	--	--

Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment

□Applicable√Notapplicable

(2)SituationofEntrustedLoans

□Applicable√Notapplicable

None

4.Othersignificantcontract

√Applicable□Notapplicable

CompanyNameofthePartyMaki

CompanyNameoftheOtherParty

ContractObject

ContractSigningDate

BookValueoftheAssetsInvol

AssessedValueoftheAssets

AppraisalAgencyName(IfAny)

BaseDateofAssessment(ifany)

PricingPrinciple

TransactionPrice(RMB10,000)

WhetherARelatedTraction

ConnectionRelation

ExecutionConditionAsOfThe

DateofDisclosure

DisclosureIndex

ngthecontract	oftheContract			vedbytheContract(RMB10,000)(IfAny)	InvolvedbytheContract(RMB10,000)			EndOfTheReportingPeriod
SAPOPhotoelectric	HangzhouJinjiangGroupCo.,Ltd.,KunshanZhiqimeiMaterialTechnologyCo.,Ltd.,JapanNittoDenkoCorporation	NittoDenkoprovidespolarizermanufacturingtechnologyandrelatedcorporation.	November6,2017			No

Consideringtheformulationofmarketpriceandtechnicalserviceperiod,thefinaltransactionpriceisbasedonthecommercialnegotiationresultsofbothparties.

86,900

No

Withnoassociationrelationshipwiththecompany

Fulfillmentcompleted

November7,2017

Http://www.cninfo.com.cn:(AnnouncementNo.:2017-53)onNovember7,2017

Note:50%ofthetechnologylicensefeeagreedintheabovecontractshallbebornebyChengboOptoelectronics(anditsaffiliates)andKunshanQimeiMaterialTechnologyCo.,Ltd.(anditsaffiliates)respectively,andshallbepaidincashaccordingtothecooperationschedulewithJidongElectric.XVI.Explanationonothersignificantevents

√Applicable□Notapplicable

（1）ProgressofthisrestructuringAccordingtotherelevantregulationsoftheShenzhenStockExchange,uponapplicationbythecompany,thetradingofthecompany'sshareshasbeensuspendedsincetheopeningofthemarketonthemorningofDecember19,2022.OnDecember30,2022,thecompanyheldthe19thmeetingofthe8thBoardofDirectorsandthe13thmeetingofthe8thBoardofSupervisors,Proposalsrelatedtothistransaction,suchastheProposalonthe"Plan

forIssuingShares,PayingCashtoPurchaseAssets,RaisingSupportingFunds,andRelatedPartyTransactionsofShenzhenTextile(Group)Co.,Ltd."anditsAbstract,werereviewedandpassed.Thecompany'sstockmarketwasresumedonthemorningofJanuary3,2023.Thecompanyplanstopurchase100%oftheequityofHengmeiOptoelectronicsCo.,Ltd.byissuingsharesandpayingcash,andplanstoraisematchingfundsthroughnon-publicofferingofsharestonomorethan35eligiblespecifictargets(hereinafterreferredtoas"thetransaction").Thistransactionconstitutesarelatedpartytransactionandisexpectedtoconstituteasignificantassetreorganization,butdoesnotconstituteareorganizationandlisting,whichwillnotleadtoachangeintheactualcontrollerofthecompany.Thistransactionisconducivetoachievingastrongalliancewithinthepolarizerindustry,rapidlyincreasingtheproductionscaleofpolarizers,optimizingthelayoutoftheindustrialchain,anddeepeningthedepthoftechnicalreserves,enablingthecompanytomovetoanewstageofhigh-qualitydevelopment.Atthesametime,thismajorassetrestructuringisinlinewiththerelevantnationalandShenzhendevelopmentstrategicarrangements,andhasapositivesignificanceinensuringthesafetyofthenationalnewdisplaysupplychain.Sincethedisclosureofthistransactionplan,thecompanyandrelevantpartieshaveactivelypromotedvariousworkrelatedtothistransaction.Theaudit,evaluation,duediligenceandotherworkinvolvedinthisexchangearestillongoing.Afterthecompletionofrelevantwork,thecompanywillconveneaboardofdirectorsagaintoreviewrelevantmattersofthistransaction,andthecompanywillperformrelevantsubsequentapprovalandinformationdisclosureproceduresinaccordancewithrelevantlawsandregulations.

（2）Progressoftheindustrializationprojectofultralargesizepolarizersfortelevision(Line7)Duringthereportingperiod,technicalindicatorssuchasyieldandlossratesofLine7improvedmonthbymonth,productioncapacityincreased,andthecompany'soperatingperformanceimprovedmonthbymonth.ThemainproductsofLine7havebeenverifiedbycustomers,theordervolumehasgraduallyincreased,andtheunitmanufacturingcostoftheproductshasgraduallydecreased;Theyieldofthe65inchlargesizehasreachedtheadvancedlevelintheindustry,andtheproductstructurehasbeencontinuouslyoptimized,drivingtheimprovementofthecompany'soperatingefficiency.

（3）InvestmentintheconstructionofRTSrearcuttingproductionlineIn2021,thecompanywillincreaseinvestmentintheconstructionofaRTSrearcuttingproductionline,withatotalinvestmentofnomorethan30millionyuan;AsofDecember31,2022,thesignedcontractamountwas

26.17millionyuan,andtheactualpaymentwas24.02millionyuan.Currently,productionoperationsarebeingorderlypromotedbasedontheoverallmarketdemandandcustomerorderrelease,andtheproductionlineiscontinuouslyimproving.

（4）DisposalofassetsofthejointventurecompanyShenzhenXieliShenzhenXieliAutomobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isaSinoforeignjointventureestablishedbythecompanyandHongKongXieliMaintenanceCompanyin1981,witharegisteredcapitalof3.12millionyuan.Thecompanyholds50%oftheequity.Thecompany'soperatingperiodendedin2008anditsbusinesslicensewasrevokedin2014.Thecompany'smainassetsarerealestate.InMarch2020,ShenzhenXieliIndustrialandCommercialCo.,Ltd.hasbeencancelled,buttherearestillthreepropertiesunderitsnamethatneedtoberesolvedthroughfurthernegotiationbetweentheshareholdersofbothparties.OnJuly26,2021,thecompanyfiledalawsuitwiththePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedby

theShenzhenMarketSupervisionandAdministrationBureauonMarch9,2020.OnNovember21,2021,thecourtissuedajudgmentrevokingthecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedbytheShenzhenMarketSupervisionandAdministrationBureau;OnDecember3andDecember6,2021,HongKongXieliandShenzhenMunicipalMarketSupervisionandAdministrationBureaurespectivelysubmittedpetitionsofappealtotheShenzhenIntermediatePeople'sCourt.OnApril18,2022,thecompanyreceivedanoticeofthesecondinstancehearingfromtheShenzhenIntermediatePeople'sCourt,andthecasewasheardinthesecondinstanceonApril27,2022.OnJune28,2022,theShenzhenIntermediatePeople'sCourtruledthatthefirstwastorevoketheadministrativejudgment(2021)Yue0308XingChuNo.1883ofthePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvince;ThesecondistosenditbacktothePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvinceforretrial.OnJuly22,2022,asubpoenawasreceivedfromthePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvince.ThecourtisscheduledtoholdatrialonAugust25,2022.ThecourtmadeafirstinstancejudgmentonDecember30,2022,andwewonthelawsuittorevoketheadministrativeactofShenzhenXieli'sderegistration.Thethirdpersonintheoriginaltrial,HongKongXieliMaintenanceCo.,Ltd.,wasnotsatisfiedandappealedtotheShenzhenIntermediatePeople'sCourtonJanuary10,2023.Later,duetothefailureofHongKongXieliMaintenanceCo.,Ltd.topaythecaseacceptancefeeinadvanceonschedule,theShenzhenIntermediatePeople'sCourtissuedanadministrativerulingNo.(2023)Yue03XingZhong387,decidingthatthecaseshouldbehandledasiftheappellant,HongKongXieliMaintenanceCo.,Ltd.,hadwithdrawntheappeal.

（5）MattersonwaivingthepreemptiverightandequitytransferofcontrollingsubsidiariesTheshareholders'meetingofShengboOptoelectronics,thecompany'sholdingsubsidiary,agreedthatHangzhouJinhangEquityInvestmentFundPartnership(limitedpartnership)wouldtransfer40%ofitsshareholdinginShengboOptoelectronicstoHengmeiOptoelectronicsCo.,Ltd.Fordetails,seehttp//www.cninfo.com.cn（http://www.cninfo.com.cn）CompanyAnnouncementNo.2023-01.OnJanuary19,2023,ShengboOptoelectronicsobtainedthe"RegistrationNotice"issuedbytheShenzhenMunicipalMarketSupervisionandAdministrationBureau,andtheindustrialandcommercialchangeregistrationproceduresforthisequitytransferhavebeencompleted.Afterthischange,thecompanystillholds60%equityofShengboOptoelectronics,whileHengmeiOptoelectronicsholds40%equityofShengboOptoelectronics.Thisequitytransferisconducivetosynergizingtheadvantagesofbothpartiesinthepolarizerindustry,integratinghigh-qualityresourcesofbothparties,furtheroptimizingandstrengtheningthemainpolarizerindustry,andbetterenhancingthecorecompetitivenessoflistedcompanies.XVII.SignificanteventofsubsidiaryoftheCompany

√Applicable□Notapplicable

（1）ProgressoflawsuitsinvolvingthecompanyanditsholdingsubsidiariesInJulyandAugust2022,thecompanyanditsholdingsubsidiary,ShengboOptoelectronics,receivedlegaldocumentssuchastheNoticeofRespondingtoLawsuits,Summons,andotherlegaldocumentsservedbythePeople'sCourtofPingshanDistrict,ShenzhenCity,GuangdongProvince,withthecasenumbersof(2022)Yue0310MinChuNo.3507,4013,and4336.TheywereinformedthatthecourthadacceptedthecaseofHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership)(hereinafterreferredtoas"JinhangFund")v.ShengboOptoelectronics①dissolutiondispute②InthecaseoftheCompany'sresolutionvalidityconfirmationdisputeandthecaseoftheshareholder'srighttoknowdispute,theCompanywasnotifiedtoparticipateinthelawsuitasapartytothecase,andShengboOptoelectronicsrespondedasthedefendantin

thecase.Seehttp//www.cninfo.com.cnfordetails（http://www.cninfo.com.cn）CompanyAnnouncements2022-20and2022-25.Thethreecasesmentionedabove,namely,thedissolutiondisputecase,thecompanyresolutionvalidityconfirmationdisputecase,andtheshareholder'srighttoknowdisputecase,wereheardinthePingshanDistrictPeople'sCourtofShenzhenCity,GuangdongProvinceonJuly15,2022,September22,2022,andSeptember22,2022,respectively,butnojudgmenthasyetbeenrendered.

（2）ProgressofsubsidiariesparticipatingintheestablishmentofindustrialfundsOnNovember16,2017,thecompany'sholdingsubsidiaryShengboOptoelectronicssignedthe"ChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)PartnershipAgreement"withthefundmanagerHuaijiInvestment,generalpartnerJinxinInvestment,andotherlimitedpartners,jointlyinitiatingtheestablishmentofanindustrialfund,focusingonprojectsrelatedtotheopticalfilmindustrychainrelatedtothecompany'smainbusiness,withafundscaleof50millionyuan,AsoneofthelimitedpartnersoftheIndustrialFund,ShengboOptoelectronicshassubscribedacapitalcontributionof28.5millionyuan.Seehttp//www.cninfo.com.cnfordetails（http://www.cninfo.com.cn）CompanyAnnouncementNo.2017-55.

OnFebruary10,2018,ChangxingJunyingcompleteditsindustrialandcommercialregistrationandcompletedthefilingofprivateinvestmentfundsonFebruary8,2018.Seehttp//www.cninfo.com.cnfordetails（http://www.cninfo.com.cn）CompanyAnnouncementNo.2018-05.Inordertooptimizethestrategiclayoutandsupplementtheworkingcapital,ShengboOptoelectronicsandHangzhouYuanzhenInvestmentManagementCo.,Ltd.(hereinafterreferredtoas"YuanzhenInvestment")signedthePropertyShareTransferAgreementforChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)onJuly11,2022,transferringtheChangxingFundshareheldbyShengboOptoelectronicstoYuanzhenInvestmentatatransactionconsiderationof28.5millionyuan.Afterthispropertysharetransfer,thecompanywillwithdrawfromChangxingFundandnolongerholdthepartnershipshareofChangxingFund.Seehttp//www.cninfo.com.cnfordetails（http://www.cninfo.com.cn）CompanyAnnouncementNo.2022-21.

VII.ChangeofsharecapitalandshareholdingofPrincipal

ShareholdersI.Changesinsharecapital

1.Changesinsharecapital

Inshares

	Beforethechange		Increase/decrease（+，-）					AftertheChange
	Amount	Proportion	Shareallotment	Bonusshares	Capitalizationofcommonreservefund	Other	Subtotal	Quantity	Proportion
1.Shareswithconditionalsubscription	72,000	0.01%	0	0	0	0	0	72,000	0.01%
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	72,000	0.01%	0	0	0	0	0	72,000	0.00%
Incl：Domesticlegalpersonshares	0	0.00%	0	0	0	0	0	0	0.00%
DomesticNaturalPersonshares	72,000	0.01%	0	0	0	0	0	72,000	0.01%
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	506,449,849	99.99%	0	0	0	0	0	506,449,849	99.99%

1.CommonsharesinRMB	457,021,849	90.23%	0	0	0	0	0	457,021,849	90.23%
2.Foreignsharesindomesticmarket	49,428,000	9.76%	0	0	0	0	0	49,428,000	9.76%
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	506,521,849	1.00%	0	0	0	0	0	506,521,849	100.00%

Reasonsforsharechanged

□Applicable√NotapplicableApprovalofChangeofShares

□Applicable√NotapplicableOwnershiptransferofsharechanges

□Applicable√NotapplicableProgressonanysharerepurchase:

□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changeofshareswithlimitedsalescondition

□Applicable√NotapplicableII.Securitiesissueandlisting

1.ExplanationoftheSituationoftheSecurityIssue(NoPreferredShares)intheReportPeriod

□Applicable√Notapplicable

2.Changeofassetandliabilitystructurecausedbychangeoftotalcapitalsharesandstructure

□Applicable√Notapplicable

3.Abouttheexistingemployees’shares

□Applicable√Notapplicable

III.Shareholdersandactualcontrollingshareholder

1.Numberofshareholdersandshareholding

InShares

Totalnumberofcommonshareholdersattheendofthereportingperiod	38,145	Totalshareholdersattheendofthemonthfromthedateofdisclosingtheannualreport	34,9751	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	0	234,069,436
ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.	State-ownedLegalperson	3.18%	16,129,032	0	0	16,129,032
SunHuiming	DomesticNatureperson	1.23%	6,208,853	200,200	0	6,208,853
SuWeipeng	DomesticNatureperson	0.71%	3,580,000	756,934	0	3,580,000	Pledge	2,800,000
ChenXiaobao	DomesticNatureperson	0.60%	3,029,484	1,477,884	0	3,029,484
ZhangzhouXiaotianVentureInvestmentCo.,Ltd.	DomesticNon-State-ownedLegalperson	0.58%	2,924,500	2,924,500	0	2,924,500
LiZengmao	DomesticNatureperson	0.44%	2,224,397	141,400	0	2,224,397
QiJianhong	DomesticNatureperson	0.28%	1,433,800	-785,000	0	1,433,800
ShenzhenPengkangPharmaceuticalCo.,	DomesticNon-State-ownedLegal	0.28%	1,429,200	1,429,200	0	1,429,200

1DuetothefactthatthecompanyhasnotyetobtainedthenumberofshareholderswithBsharesfromChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranchasofMarch31,2023(theissuanceoftheBshareshareholderlistis3tradingdaysbehindtheissuanceoftheAshareshareholderlist),thetotalnumberofshareholders(34975)isthesumofthenumberofshareholderswithAsharesasofMarch31,2023(30231)andthenumberofshareholderswithBsharesasofMarch20,2023(4744).

Ltd.	person
PengXun	DomesticNatureperson	0.27%	1,359,700	1,359,700	0	1,359,700
Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)（SeeNotes3）		None
Explanationonshareholdersparticipatinginthemargintradingbusiness		Amongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany.
Aboveshareholdersentrustingorentrustedwithvotingrights,orwaivingvotingrights		None
Top10shareholdersincludingthespecialaccountforrepurchase(ifany)(seenote10)		None

Shareholdingoftop10shareholdersofunrestrictedshares

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	6,208,853	Foreignsharesindomesticmarket	6,208,853
SuWeipeng	3,580,000	CommonsharesinRMB	3,580,000
ChenXiaobao	3,029,484	CommonsharesinRMB	3,029,484
ZhangzhouXiaotianVentureInvestmentCo.,Ltd.	2,924,500	CommonsharesinRMB	2,924,500
LiZengmao	2,224,397	CommonsharesinRMB	2,224,397
QiJianhong	1,433,800	CommonsharesinRMB	1,433,800
ShenzhenPengkangPharmaceuticalCo.,Ltd.	1,429,200	CommonsharesinRMB	1,429,200
PengXun	1,359,700	CommonsharesinRMB	1,359,700
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），Quantityofshares564.35million，Shareholdingratio：55.78%；ShenUniverseA（000023），Quantityofshares8.21million，Shareholdingratio：5.91%；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），Quantityofshares1,059.08million，Shareholdingratio：44.35%；BeautyStar（002243），Quantityofshares604.82million，Shareholdingratio:49.96%；HopewellHighway（00737），Quantityofshares2,213.45million，Shareholdingratio:71.83%；Infinova（002528），Quantityofshares315.83million,Shareholdingratio:26.35%；SWPD（301038），Quantityofshares49.5million,Shareholdingratio:37.5%；EternalAsia（002183），Quantityofshares601.67million,Shareholdingratio:23.17%；Energy（000027)，Quantityofshares6.77million，Shareholdingratio:0.14%；BankCommunication（601328），Quantityofshares9.52million,Shareholdingratio:0.01%；TehanEcological（300197），Quantityofshares113.98million,Shareholdingratio:4.04%；ShenzhenExpressway（600548），Quantityofshares10,662.23million,Shareholdingratio:74.39%；Huachangda（300278），Quantityofshares398.38million,Shareholdingratio:28.03%；Soling（002766），Quantityofshares84.38million,Shareholdingratio:9.96%；HuakongSEG（000068），Quantityofshares142.79million,Shareholdingratio:14.18%；ShenSEG（000058），Quantityofshares696.16million,Shareholdingratio:56.54%；HuajinCapital（000532），Quantityofshares31.57million,Shareholdingratio:9.16%；Leaguer（688589），Quantityofshares13million,Shareholdingratio:12.97%；SDGS（300917），Quantityofshares80.74million,Shareholdingratio:47.78%；SDG（000070），Quantityofshares315.16million,Shareholdingratio:37.32%；TellusA（000025），Quantityofshares208.74million,Shareholdingratio:48.42%；Microgate（300319），Quantityofshares212.8million,Shareholdingratio:24.74%；ShenHuafa（000020），Quantityofshares16.57million,Shareholdingratio:5.85%；ChinaVANKE（02202），Quantityofshares77.27million,Shareholdingratio:0.66%.

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	Itdirectlyheld49.07%equityofShenzhenGas(601139);Itdirectlyheld36.99%equityofShenzhenZhenye(000006);Itdirectlyheld48.05%equityofShenzhenEnergy(000027).

Changesofcontrollingshareholderinreportingperiod

□Applicable√NotapplicableNochangesofcontrollingshareholderfortheCompanyinreportingperiodBlockDiagramoftheownershipandcontrolrelationsbetweenthecompanyandtheactualcontroller

Theactualcontrollercontrolsthecompanybymeansoftrustormanagingtheassetsinotherway

□Applicable√Notapplicable

4.Thecumulativenumberofsharespledgedbythecontrollingshareholderorthelargestshareholderofthecompanyanditspersonactinginconcertaccountsfor80%ofthenumberofsharesheldbythecompany

□Applicable√Notapplicable

5.Particularsaboutotherlegalpersonshareholderswithover10%shareheld

□Applicable√Notapplicable

6.SituationofShareLimitationReductionofControllingShareholders,ActualControllers,RestructuringParty

andOtherCommitmentSubjects

□Applicable√NotapplicableIV.SpecificimplementationofsharerepurchaseduringthereportingperiodProgressinimplementationofsharerepurchase

□Applicable√NotapplicableImplementationprogressofreducingrepurchasedsharesbycentralizedbidding

□Applicable√Notapplicable

VIII.SituationofthePreferredShares

□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod.

IX.CorporateBond

□Applicable√Notapplicable

X.FinancialReportI.Auditreport

Typeofauditopinion	StandardUnqualifiedopinion
Dateofsignatureofauditreport	April1,2023
Nameofauditfirm	DeloitteToucheTohmatsuCPALtd.(specialgeneralpartnership)
Theauditreportnumber	DSB(Shen)ZD(23)No.:P03516
NamesoftheCertifiedPublicAccountants	XuXiangzhao,YaoMing

Auditors’Report

ToallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.：

I.OpinionWehaveauditedthefinancialstatementsofShenzhenTextile(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisethebalancesheetasatDecember31,2022,andtheincomestatement,thestatementofcashflowsandthestatementofchangesinowners'equityfortheyearthenendedandnotestothefinancialstatements.Inouropinion,theattachedfinancialstatementsareprepared,inallmaterialrespects,inaccordancewithAccountingStandardsforBusinessEnterprisesandpresentfairlythefinancialpositionoftheCompanyasatDecember31,2022anditsoperatingresultsandcashflowsfortheyearthenended.II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

1.Recognitionofpolarizersalesrevenue

AsmentionedinNote(VII)39tothefinancialstatement,in2022theoperatingincomereportedintheconsolidatedfinancialstatementofShenzhenTextileGroupwasRMB2,837,988,264.36,ofwhichthesalesrevenueofpolarizerswasRMB2,693,787,636.62,accountingfor94.92%ofthetotaloperatingincome.ThesalesrevenueofShenzhenTextileGroup'spolarizerisrecognizedwhenthecustomerobtainscontroloftherelevantgoods.Duetotheimportanceofpolarizersalesrevenuetotheconsolidatedfinancialstatementasawhole,andtherevenueisoneofthekeyperformanceindicatorsofShenzhenTextileGroup,thereisaninherentriskthatmanagementwillmanipulaterevenuerecognitioninordertoachievespecificobjectivesor

expectations,therefore,wehaveidentifiedtherecognitionofpolarizersalesrevenueasakeyauditmatterfortheauditoftheconsolidatedfinancialstatement.Inresponsetotheabovekeyauditmatter,theauditproceduresweimplementmainlyinclude:

Understandandevaluatetheinternalcontroloftherevenue-relatedbusinessofShenzhenTextileGroup,understandandevaluatethedesignandimplementationofrelevantinternalcontrolactivitiesbyquestioningrelevantbusinesspersonnel,observingbusinessprocesses,obtainingandcheckingdocuments,etc.,andconducttheoperationeffectivenesstestofinternalcontrolactivities.Examinesalescontractswithkeycustomers,identifycontractualtermsandconditionsrelatedtothetransferofcontrolofgoods,andassesswhethertheaccountingpoliciesforrevenuerecognitioncomplywiththerequirementsofaccountingstandardsforbusinessenterprisesInresponsetotheabovekeyauditmatter,theauditproceduresweimplementmainlyinclude:

Performrevenueanalysisproceduresbyproductionline,producttypeandcustomer,andanalyzetherationalityofrevenuechangesbasedonmarketandotherfactors.Evaluatewhetherrevenuerecognitionmeetstherequirementsofaccountingstandardsforenterprises;Samplesaretakentoperformdetailedtestsonsalesrevenue,checksupportingdocumentssuchasinvoices,outbounddeliveryorders,andreceiptsrelatedtorevenuerecognition,andverifythesalesofmajorcustomersbyletterofconfirmationandevaluatetheauthenticityofpolarizersalesrevenuerecognition.Selectsamplesofsalestransactionsbeforeandafterthebalancesheetdate,checkthesupportingdocumentssuchasinvoices,outbounddeliveryorders,andreceipts,andevaluatewhethertherevenueisrecordedintheappropriateaccountingperiod.

2.ImpairmentofpolarizerinventoryAsmentionedinNote(VII)8tothefinancialstatement,asofDecember31,2022,theinventorybookbalancereportedintheconsolidatedfinancialstatementofShenzhenTextileGroupwasRMB741,464,422.61,ofwhichthebookbalanceofpolarizerinventorywasRMB721,282,838.15,accountingfor97.12%ofthetotalinventory,andthecorrespondinginventorydeclinereservewasRMB180,886,720.53.InaccordancewiththeGroup'saccountingpolicy,inventoriesaremeasuredatthelowerofcostornetrealizablevalueattheendoftheyear,andwhenthenetrealizablevalueofinventoriesislowerthancost,aprovisionismadeforinventorypricedeclines.Astheprovisionforinventorydeclinesinvolvessignificantmanagementestimates,wehaveidentifiedtheimpairmentofpolarizerinventoriesasakeyauditmatterintheauditoftheconsolidatedfinancialstatement.Inresponsetotheabovekeyauditmatter,theauditproceduresweimplementmainlyinclude:

Understandandevaluatethedesignandimplementationofinternalcontrolsrelatedtoinventoryimpairment;

Understandandevaluatetheappropriatenessofaccountingpoliciesrelatedtoinventorypricedeclinesprovision;

Implementinventoryon-sitemonitoringprocedures,checkthecheck-countquantityofinventoryonasamplingbasis,andobservethestatusofinventorytoevaluatetheinventoryquantityandconditionatthebalancesheetdate;

Evaluatethereasonablenessofmanagement'smethodologyforaccruingprovisionsforinventorydeclinesandtheimportantassumptionsandparametersusedtocalculatenetrealizablevalue;Evaluatewhethertherearesignsofmanagementbiasbyselectingsamplesofdatausedtodeterminethenetrealizablevalueofinventorieswithcomparingtotheactualcostofcompletionandactualsellingpriceoftheproductthathasactuallybeenincurredinthemostrecent.IV.Otherinformation

ThemanagementoftheCompanyisresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2022,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.WehavenothingtoreportinthisregardV.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatements

TheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.

Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.

ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficient

andappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,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.DeloitteToucheTohmatsuCPALtd.(specialgeneralpartnership)ChineseC.P.A.

（ProjectPartner)ShanghaiChina

ChineseC.P.A.

II.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY

1.ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.

Dec31,2022

InRMB

Items	Note	December31,2022	December31,2021
Currentasset：
Monetaryfund	(VII)1	991,789,968.19	302,472,828.60
Transactionalfinancialassets	(VII)2	319,605,448.44	617,191,678.56
Notereceivable	(VII)3	74,619,100.26	149,942,880.28
Accountreceivable	(VII)4	636,583,469.93	479,998,708.57
Financingofreceivables	(VII)5	54,413,796.91	21,474,101.07
Prepayments	(VII)6	18,391,444.67	15,406,619.53
Otheraccountreceivable	(VII)7	10,585,975.38	140,185,750.40
Inventories	(VII)8	558,447,648.77	743,401,857.74
Othercurrentasset	(VII)9	69,535,531.24	29,503,352.42
Totalofcurrentassets		2,733,972,383.79	2,499,577,777.17
Non-currentassets：
Longtermshareequityinvestment	(VII)10	134,481,835.74	133,022,325.77
Otherequityinstrumentsinvestment	(VII)11	167,678,283.27	186,033,829.72
Realestateinvestment	(VII)12	126,315,834.76	125,251,851.43
Fixedassets	(VII)13	2,240,221,656.36	2,396,658,988.81
Constructioninprogress	(VII)14	38,061,619.60	71,482,031.08
Userightassets	(VII)15	15,365,393.88	9,221,189.37
Intangibleassets	(VII)16	44,192,571.95	48,635,160.00
Goodwill	(VII)17	-	-
Long-germexpensestobeamortized	(VII)18	4,470,957.79	5,387,295.94
Deferredincometaxasset	(VII)19	69,823,814.29	3,708,596.78
Othernon-currentasset	(VII)20	42,553,016.47	84,560,280.09
Totalofnon-currentassets		2,883,164,984.11	3,063,961,548.99
Totalofassets		5,617,137,367.90	5,563,539,326.16
Currentliabilities
Short-termloans	(VII)21	7,000,000.000	37,575,113.83
Notespayable	(VII)22	-	16,682,324.12
Accountpayable	(VII)23	327,049,873.70	359,584,252.94
Advancereceipts	(VII)24	1,393,344.99	1,805,311.57
Contractliabilities	(VII)25	4,274,109.40	68,955.21
Employees’wagepayable	(VII)26	61,166,444.90	59,719,860.24
Taxpayable	(VII)27	8,897,312.51	9,200,627.09
Otheraccountpayable	(VII)28	197,345,455.37	201,317,421.35
Non-currentliabilityduewithin1year	(VII)29	104,183,438.22	5,175,393.52
Othercurrentliability	(VII)30	92,945,741.78	58,264,958.58
Totalofcurrentliability		804,255,720.87	749,394,218.45
Non-currentliabilities：
Long-termloan	(VII)31	607,421,585.00	683,016,243.25
Leaseliability	(VII)32	8,628,672.71	4,243,855.71
Deferredincome	(VII)33	117,814,796.10	110,461,293.15
Deferredincometaxliability	(VII)19	47,974,267.80	61,642,660.91
Totalnon-currentliabilities		781,839,321.61	859,364,053.02
Totalofliability		1,586,095,042.48	1,608,758,271.47
Owners’equity
Sharecapital	(VII)34	506,521,849.00	506,521,849.00
Capitalreserves	(VII)35	1,961,599,824.63	1,961,599,824.63
Othercomprehensiveincome	(VII)36	109,596,609.31	119,682,119.05

Specialreserve	(VII)37	100,909,661.32	98,245,845.47
Retainedprofit	(VII)38	170,636,610.95	125,317,336.31
Totalofowner’sequitybelongtotheparentcompany		2,849,264,555.21	2,811,366,974.46
Minorityshareholders’equity		1,181,777,770.21	1,143,414,080.23
Totalofowners’equity		4,031,042,325.42	3,954,781,054.69
Totalofliabilitiesandowners’equity		5,617,137,367.90	5,563,539,326.16

LegalRepresentative:YinKefeiPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing

2.ParentCompanyBalanceSheet

InRMB

Items	Note	December31,2022	December31,2021
Currentasset：
Monetaryfund
Transactionalfinancialassets		426,042,455.28	130,270,313.58
Accountreceivable	(XVI)1	319,605,448.44	586,540,735.16
Otheraccountreceivable	(XVI)2	15,643,024.11	7,935,911.24
Inventories		14,132,756.62	14,383,631.68
Totalofcurrentassets		26,237.85	39,131.60
Non-currentassets：		775,449,922.30	739,169,723.26
Longtermshareequityinvestment	(XVI)3
Otherequityinstrumentsinvestment		2,092,431,333.83	2,089,070,531.86
Realestateinvestment		151,618,842.39	169,974,388.84
Fixedassets		101,190,712.85	98,174,132.57
Intangibleassets		11,346,585.35	20,255,108.56
Deferredincometaxasset		308,243.90	454,036.00
Othernon-currentasset		-	3,672,545.57
Totalofnon-currentassets		25,997,082.15	55,790,497.23
Totalofassets		2,382,892,800.47	2,437,391,240.63
Currentliabilities		3,158,342,722.77	3,176,560,963.89
Accountpayable
Advancereceipts		411,743.57	411,743.57
Employees’wagepayable		691,160.58	639,024.58
Taxpayable		18,510,589.33	16,712,946.96
Otheraccountpayable		7,121,466.14	1,943,470.48
Totalofcurrentliability		113,736,371.24	116,648,650.39
Non-currentliabilities：		140,471,330.86	136,355,835.98
Deferredincome
Deferredincometaxliability		300,000.00	400,000.00
Totalnon-currentliabilities		44,363,868.30	58,002,800.69
Totalofliability		44,663,868.30	58,402,800.69
Owners’equity		185,135,199.16	194,758,636.67
Sharecapital
Capitalreserves		506,521,849.00	506,521,849.00
Less：Sharesinstock		1,577,392,975.96	1,577,392,975.96
Othercomprehensiveincome		98,855,668.75	108,762,538.39
Specialreserve		100,909,661.32	98,245,845.47
Retainedprofit		689,527,368.58	690,879,118.40
Totalofowners’equity		2,973,207,523.61	2,981,802,327.22
Totalofliabilitiesandowners’equity		3,158,342,722.77	3,176,560,963.89

3.ConsolidatedIncomestatement

InRMB

Note

Year2022

Year2021

1.Operationrevenue	(VII)39	2,837,988,264.36	2,330,061,681.00
Less：Businesscost	(VII)39	2,374,005,896.43	1,906,993,663.75
Businesstaxandsurcharge	(VII)40	7,907,126.91	10,523,548.09
Salesexpense	(VII)41	35,962,529.35	37,973,336.39
Administrativeexpense	(VII)42	128,388,940.29	122,088,830.15
R&Dcosts	(VII)43	80,520,155.54	103,508,764.53
Financialexpenses	(VII)44	12,943,606.57	(130,344.09)
Including：Interestexpense		31,131,112.38	14,306,275.13
Interestincome		8,327,248.75	1,655,853.59
Add:Otherincome	(VII)45	26,350,210.89	19,643,379.33
Investmentgain	(VII)46	19,383,351.87	22,663,013.06
Incl:investmentgainsfromaffiliates		1,307,639.15	33,984.66
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome		-	-
Changingincomeoffairvalue	(VII)47	-	2,150,943.40
Creditimpairmentloss	(VII)48	(4,618,553.09)	(4,981,560.53)
Impairmentlossofassets	(VII)49	(202,573,465.84)	(130,396,451.18)
Assetsdisposalincome	(VII)50	31,264.60	(597,458.77)
II.Operationalprofit		36,832,817.70	57,585,747.49
Add：Non-operationalincome	(VII)51	14,993,082.57	21,285,786.64
Less：Incometaxexpenses	(VII)52	7,477,057.47	1,686,263.35
III.Totalprofit		44,348,842.80	77,185,270.78
Less：Incometaxexpenses	(VII)53	(67,443,123.52)	11,118,796.96
IV.Netprofit		111,791,966.32	66,066,473.82
(I)Classificationbybusinesscontinuity
1.Netcontinuingoperatingprofit		111,791,966.32	66,066,473.82
2.Terminationofoperatingnetprofit		-	-
(II)Classificationbyownership
Including：Netprofitattributabletotheownersofparentcompany		73,309,182.94	55,733,468.82
Minorityshareholders’equity		38,482,783.38	10,333,005.00
V.Netafter-taxofothercomprehensiveincome	(VII)36	(10,204,603.14)	4,234,512.42
Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany.		(10,085,509.74)	4,234,512.42
（I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod		(10,058,739.46)	4,433,576.15
1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets		-	-
2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.		-	-
3.Changesinthefairvalueofinvestmentsinotherequityinstruments		(10,058,739.46)	4,433,576.15
4.Changesinthefairvalueofthecompany’screditrisks		-	-
（II）Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss.		(26,770.28)	(199,063.73)
1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss.		-	-
2.Changesinthefairvalueofinvestmentsinotherdebtobligations		(178,640.10)	-
3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets		-	-
4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations		-	-
5.Reserveforcashflowhedges		-	-
6.Translationdifferencesincurrencyfinancialstatements		151,869.82	(199,063.73)
7.Other		-	-
NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity		(119,093.40)	-
VI.Totalcomprehensiveincome		101,587,363.18	70,300,986.24

Totalcomprehensiveincomeattributabletotheowneroftheparentcompany		63,223,673.20	59,967,981.24
Totalcomprehensiveincomeattributableminorityshareholders		38,363,689.98	10,333,005.00
VII.Earningspershare
Basicearningspershare		0.14	0.11

Thecurrentbusinesscombinationundercommoncontrol,thenetprofitsofthecombinedpartybeforeachievednetprofitofRMB0.00,lastperiodthecombinedpartyrealizedRMB0.00.LegalRepresentative:YinKefeiPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing

4.IncomestatementoftheParentCompany

InRMB

	Note	Year2022	Year2021
1.Operationrevenue	(XVI)4	56,046,883.88	78,159,686.19
Less：Businesscost	(XVI)4	9,544,956.96	11,547,944.88
Businesstaxandsurcharge		2,296,709.15	2,968,080.87
Salesexpense		106,542.65	49,682.40
Administrativeexpense		46,419,746.13	45,821,418.49
Financialexpenses		(5,381,252.49)	283,692.12
Including：Interestexpenses		6,601.33	645,507.87
Interestincome		5,369,095.59	359,182.13
Add：Otherincome		269,698.97	602,709.52
Investmentgain	(XVI)5	18,656,000.37	20,409,098.48
Including:investmentgainsfromaffiliates		1,307,639.15	33,984.66
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome		-	-
Creditimpairmentloss		940,005.04	(710,513.74)
Impairmentlossofassets		-	(32,769.22)
Assetsdisposalincome		-	(386,933.41)
II.Operationalprofit		22,925,885.86	37,370,459.06
Add：Non-operationalincome		6,004,050.33	283,354.84
Less：Non-operationalexpenses		100,500.00	-
III.Totalprofit		28,829,436.19	37,653,813.90
Less：Incometaxexpenses		2,191,277.71	5,900,206.38
IV.Netprofit		26,638,158.48	31,753,607.52
1.Netcontinuingoperatingprofit		26,638,158.48	31,753,607.52
2.Terminationofoperatingnetprofit		-	-
V.Netafter-taxofothercomprehensiveincome		(9,906,869.64)	2,288,677.33
（I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod		(10,058,739.46)	2,487,741.06
1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets		-	-
2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.		-	-
3.Changesinthefairvalueofinvestmentsinotherequityinstruments		(10,058,739.46)	2,487,741.06
4.Changesinthefairvalueofthecompany’screditrisks		-	-
5.Other		-	-
(II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss		151,869.82	(199,063.73)
1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss.		-	-
2.Changesinthefairvalueofinvestmentsinotherdebtobligations		-	-

3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets		-	-
4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations		-	-
5.Reserveforcashflowhedges		-	-
6.Translationdifferencesincurrencyfinancialstatements		151,869.82	(199,063.73)
7.Other		-	-
VI.Totalcomprehensiveincome		16,731,288.84	34,042,284.85

5.ConsolidatedCashflowstatement

InRMB

	Note	Year2022	Year2021
I.Cashflowsfromoperatingactivities
Cashreceivedfromsalesofgoodsorrendingofservices		3,046,091,280.79	2,335,256,168.54
Taxreturned		113,982,534.22	9,423,408.29
Othercashreceivedfrombusinessoperation	七、54(1)	218,296,299.96	88,625,329.53
Sub-totalofcashinflow		3,378,370,114.97	2,433,304,906.36
Cashpaidforpurchasingofmerchandiseandservices		2,453,492,479.82	1,860,349,920.78
Cashpaidtostaffsorpaidforstaffs		253,460,171.00	250,216,599.00
Taxespaid		59,230,421.14	101,786,653.96
Othercashpaidforbusinessactivities	七、54(2)	121,948,492.41	225,388,712.97
Sub-totalofcashoutflowfrombusinessactivities		2,888,131,564.37	2,437,741,886.71
Netcashgeneratedfrom/usedinoperatingactivities	七、55(1)	490,238,550.60	(4,436,980.35)
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving		28,500,000.00	10,817,803.07
Cashreceivedasinvestmentgains		18,075,712.72	14,881,941.03
Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets		101,301.53	83,520.00
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits		-	-
Otherinvestment-relatedcashreceived	七、54(3)	1,316,000,000.00	1,128,309,484.61
Sub-totalofcashinflowduetoinvestmentactivities		1,362,677,014.25	1,154,092,748.71
Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets		123,210,891.17	447,622,193.08
Cashpaidasinvestment		1.00	-
Netcashreceivedfromsubsidiariesandotheroperationalunits		-	-
Othercashpaidforinvestmentactivities	七、54(4)	1,140,433,371.49	965,000,000.00
Sub-totalofcashoutflowduetoinvestmentactivities		1,263,644,263.66	1,412,622,193.08
Netcashflowgeneratedbyinvestment		99,032,750.59	(258,529,444.37)
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment		-	-
Including:Cashreceivedasinvestmentfromminorshareholders		-	-
Cashreceivedasloans		73,230,492.79	339,219,000.00
Otherfinancing–relatedcashreceived		-	-
Sub-totalofcashinflowfromfinancingactivities		73,230,492.79	339,219,000.00
Cashtorepaydebts		26,642,157.50	-
Cashpaidasdividend,profit,orinterests		56,596,142.54	38,306,691.13
Including:Dividendandprofitpaidbysubsidiariestominorshareholders		-	-
Othercashpaidforfinancingactivities	七、54(5)	9,144,572.43	12,638,273.00
Sub-totalofcashoutflowduetofinancingactivities		92,382,872.47	50,944,964.13
Netcashflowgeneratedbyfinancing		(19,152,379.68)	288,274,035.87
IV.Influenceofexchangeratealternationoncashandcashequivalents		1,947,479.23	(1,236,414.38)
V.Netincreaseofcashandcashequivalents		572,066,400.74	24,071,196.77
Add:balanceofcashandcashequivalentsatthebeginningofterm	七、55(2)	302,408,433.72	278,337,236.95
VI..Balanceofcashandcashequivalentsattheendofterm	七、55(2)	874,474,834.46	302,408,433.72

6.CashFlowStatementoftheParentCompany

InRMB

	Note	Year2022	Year2021
I.Cashflowsfromoperatingactivities
Cashreceivedfromsalesofgoodsorrendingofservices		49,647,323.90	66,467,384.64
Taxreturned		600,618.94	-
Othercashreceivedfrombusinessoperation	(VII)、54(1)	7,065,800.34	42,417,781.16
Sub-totalofcashinflow		57,313,743.18	108,885,165.80
Cashpaidforpurchasingofmerchandiseandservices		2,458,133.73	13,344,258.31
Cashpaidtostaffsorpaidforstaffs		33,850,730.29	34,360,990.56
Taxespaid		6,260,647.31	23,084,768.18
Othercashpaidforbusinessactivities	(VII)、54(2)	5,334,787.37	10,293,028.68
Sub-totalofcashoutflowfrombusinessactivities		47,904,298.70	81,083,045.73
Netcashgeneratedfrom/usedinoperatingactivities	(VII)、55(1)	9,409,444.48	27,802,120.07
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving		-	10,817,803.07
Cashreceivedasinvestmentgains		17,348,361.22	11,479,752.94
Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets		-	-
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits		-	-
Otherinvestment-relatedcashreceived	(VII)、54(3)	1,316,000,000.00	466,820,636.28
Sub-totalofcashinflowduetoinvestmentactivities		1,333,348,361.22	489,118,192.29
Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets		2,586,581.13	2,247,719.06
Cashpaidasinvestment		1.00	-
Netcashreceivedfromsubsidiariesandotheroperationalunits		-	-
Othercashpaidforinvestmentactivities	(VII)、54(4)	1,134,754,229.41	475,000,000.00
Sub-totalofcashoutflowduetoinvestmentactivities		1,137,340,811.54	477,247,719.06
Netcashflowgeneratedbyinvestment		196,007,549.68	11,870,473.23
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment		-	-
Cashreceivedasloans		-	-
Otherfinancing–relatedashreceived		-	-
Sub-totalofcashinflowfromfinancingactivities		-	-
Cashtorepaydebts		-	-
Cashpaidasdividend,profit,orinterests		25,332,693.78	15,176,281.23
Othercashpaidforfinancingactivities		-	7,820,298.30
Sub-totalofcashoutflowduetofinancingactivities		25,332,693.78	22,996,579.53
Netcashflowgeneratedbyfinancing	(VII)、54(5)	(25,332,693.78)	(22,996,579.53)
IV.Influenceofexchangeratealternationoncashandcashequivalents		1,886.83	-
V.Netincreaseofcashandcashequivalents		180,086,187.21	16,676,013.77
Add:balanceofcashandcashequivalentsatthebeginningofterm		130,236,340.98	113,560,327.21
VI..Balanceofcashandcashequivalentsattheendofterm		310,322,528.19	130,236,340.98

7.ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod

InRMB

Items	Year2022
	Owner’sequityAttributabletotheParentCompany					Minorshareholders’equity	Totalofowners’equity
	ShareCapital	Capitalreserves	OtherComprehensiveIncome	Surplusreserves	Retainedprofit
I.Balanceattheendoflastyear	506,521,849.00	1,961,599,824.63	119,682,119.05	98,245,845.47	125,317,336.31	1,143,414,080.23	3,954,781,054.69
Add:Changeofaccountingpolicy	-	-	-	-	-	-	-
Correctingofpreviouserrors	-	-	-	-	-	-	-
Mergerofentitiesundercommoncontrol	-	-	-	-	-	-	-
Other	-	-	-	-	-	-	-
II.Balanceatthebeginningofcurrentyear	506,521,849.00	1,961,599,824.63	119,682,119.05	98,245,845.47	125,317,336.31	1,143,414,080.23	3,954,781,054.69
III.Changedinthecurrentyear	-	-	(10,085,509.74)	2,663,815.85	45,319,274.64	38,363,689.98	76,261,270.73
（1）Totalcomprehensiveincome	-	-	(10,085,509.74)	-	73,309,182.94	38,363,689.98	101,587,363.18
（II）Investmentordecreasingofcapitalbyowners	-	-	-	-	-	-	-
1．OrdinarySharesinvestedbyshareholders	-	-	-	-	-	-	-
2．Amountofsharespaidandaccountedasowners’equity	-	-	-	-	-	-	-
3．Other	-	-	-	-	-	-	-
（III）Profitallotment	-	-	-	2,663,815.85	(27,989,908.30)	-	(25,326,092.45)
1.Providingofsurplusreserves	-	-	-	2,663,815.85	(2,663,815.85)	-	-
2．Allotmenttotheowners(orshareholders)	-	-	-	-	(25,326,092.45)	-	(25,326,092.45)
3．Other	-	-	-	-	-	-	-
(IV)Internaltransferringofowners’equity	-	-	-	-	-	-	-
1.Capitalizingofcapitalreserves(ortocapitalshares)	-	-	-	-	-	-	-
2.Capitalizingofsurplusreserves(ortocapitalshares)	-	-	-	-	-	-	-
3．Makinguplossesbysurplusreserves.	-	-	-	-	-	-	-
4.Othercomprehensiveincomecarry-overretainedearnings	-	-	-	-	-	-	-
5．Other	-	-	-	-	-	-	-
(V).Specialreserves	-	-	-	-	-	-	-
1.Providedthisyear	-	-	-	-	-	-	-
2．Usedthisterm	-	-	-	-	-	-	-
（VI）Other	-	-	-	-	-	-	-
IV.Balanceattheendofthisterm	506,521,849.00	1,961,599,824.63	109,596,609.31	100,909,661.32	170,636,610.95	1,181,777,770.21	4,031,042,325.42

Amountinlastyear

InRMB

Items	Year2021
	Owner’sequityAttributabletotheParentCompany						Minorshareholders’equity	Totalofowners’equity
	ShareCapital	Capitalreserves	Less:Sharesinstock	OtherComprehensiveIncome	Surplusreserves	Retainedprofit
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	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	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	38,404,945.81	10,333,005.00	55,465,805.07
（1）Totalcomprehensiveincome	-	-	-	4,234,512.42	-	55,733,468.82	10,333,005.00	70,300,986.24
（II）Investmentordecreasingofcapitalbyowners	(1,250,430.00)	(5,914,533.90)	(7,525,438.20)	-	-	-	-	360,474.30
1．OrdinarySharesinvestedbyshareholders	-	-	-	-	-	-	-	-
2．Amountofsharespaidandaccountedasowners’equity	-	-	-	-	-	-	-	-
3．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.Othercomprehensiveincomecarry-overretainedearnings	-	-	-	(1,158,325.79)	115,832.58	1,042,493.21	-	-
5．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	125,317,336.31	1,143,414,080.23	3,954,781,054.69

8.Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiod

InRMB

Items	Year2022
	ShareCapital	Capitalreserves	OtherComprehensiveIncome	Surplusreserves	Retainedprofit	Totalofowners’equity
I.Balanceattheendoflastyear	506,521,849.00	1,577,392,975.96	108,762,538.39	98,245,845.47	690,879,118.40	2,981,802,327.22
Add:Changeofaccountingpolicy	-	-	-	-	-	-
Correctingofpreviouserrors	-	-	-	-	-	-
Other	-	-	-	-	-	-
II.Balanceatthebeginningofcurrentyear	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
III.Changedinthecurrentyear	-	-	(9,906,869.64)	2,663,815.85	(1,351,749.82)	(8,594,803.61)
（I）Totalcomprehensiveincome	-	-	(9,906,869.64)	-	26,638,158.48	16,731,288.84
(II)Investmentordecreasingofcapitalbyowners	-	-	-	-	-	-
1．OrdinarySharesinvestedbyshareholders	-	-	-	-	-	-
2.Amountofsharespaidandaccountedasowners’equity	-	-	-	-	-	-
3．Other	-	-	-	-	-	-
（III）Profitallotment	-	-	-	2,663,815.85	(27,989,908.30)	(25,326,092.45)
1.Providingofsurplusreserves	-	-	-	2,663,815.85	(2,663,815.85)	-
2．Allotmenttotheowners(orshareholders)	-	-	-	-	(25,326,092.45)	(25,326,092.45)
3．Other	-	-	-	-	-	-
(IV)Internaltransferringofowners’equity	-	-	-	-	-	-
1.Capitalizingofcapitalreserves(ortocapitalshares)	-	-	-	-	-	-
2.Capitalizingofsurplusreserves(ortocapitalshares)	-	-	-	-	-	-
3．Makinguplossesbysurplusreserves.	-	-	-	-	-	-
4．Othercomprehensiveincomecarry-overretainedearnings	-	-	-	-	-	-
5．Other	-	-	-	-	-	-
(V)Specialreserves	-	-	-	-	-	-
1.Providedthisyear	-	-	-	-	-	-
2．Usedthisterm	-	-	-	-	-	-
（VI）Other	-	-	-	-	-	-
IV.Balanceattheendofthisterm	506,521,849.00	1,577,392,975.96	98,855,668.75	100,909,661.32	689,527,368.58	2,973,207,523.61

Amountinlastyear

InRMB

Items	Year2021
	ShareCapital	Capitalreserves	Less:Sharesinstock	OtherComprehensiveIncome	Surplusreserves	Retainedprofit	Totalofowners’equity
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.Changedinthecurrentyear	(1,250,430.00)	(5,914,533.90)	(7,525,438.20)	1,130,351.54	3,291,193.33	14,425,084.51	19,207,103.68
（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.Amountofsharespaidandaccountedasowners’equity	-	-	-	-	-	-	-
3．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．Othercomprehensiveincomecarry-overretainedearnings	-	-	-	(1,158,325.79)	115,832.58	1,042,493.21	-
5．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

深圳市纺织(集团)股份有限公司2022年年度报告全文

III.BasicInformationoftheCompany

1.CompanyoverviewShenzhenTextile(Holdings)Co.,Ltd(hereinafterreferredtoas"theCompany")isacompanylimitedbysharesregisteredinGuangdongProvince,formerlyknownasShenzhenTextileIndustryCompanyandestablishedin1984.TheCompanywaslistedontheShenzhenStockExchangeinAugust1994.TheCompanypubliclyissuedRMBordinaryshares(Ashares)anddomesticlistedforeigncapitalshares(Bshares)tothedomesticandforeignpublicrespectivelyandlistedthemfortrading.

HeadquarteredinShenzhen,GuangdongProvince,themainbusinessoftheCompanyanditssubsidiaries(hereinafterreferredtoas"theGroup")includestheresearchanddevelopment,productionandmarketingofpolarizersforliquidcrystaldisplay,aswellaspropertymanagementbusinessmainlylocatedintheprosperouscommercialareaofShenzhenandtextileandgarmentbusiness.

2.Scopeofconsolidatedfinancialstatement

ThefinancialstatementshavebeenauthorizedforissuanceofBoardofDirectorsoftheCompanyonApril1,2023.

DetailsofthescopeoftheconsolidatedfinancialstatementfortheyeararesetoutintheNote(IX)"Interestsinotherentities".ChangesinthescopeoftheconsolidatedfinancialstatementfortheyeararesetoutinNote(VIII),"ChangesintheScopeofConsolidation".IV.Basisforthepreparationofthefinancialreport

（1）Basisforthepreparation

TheGroupimplementstheaccountingstandardsforenterprisesandrelatedregulationspromulgatedbytheMinistryofFinance.Inaddition,theGroupalsodisclosesrelevantfinancialinformationinaccordancewiththeNo.15CompilationRulesforDisclosureofInformationbyCompaniesofIssuingSecuritiestothePublic-GeneralProvisionsforFinancialReporting(2014Revision).

(2)Continuousoperation

TheGroupevaluateditsabilitytocontinueasagoingconcernforthe12monthsfrom31December2022andfoundnomattersorcircumstancesthatraisedsignificantdoubtsaboutitsabilitytocontinueasagoingconcern.Accordingly,thepresentfinancialreporthasbeenpreparedonthebasisofgoingconcernassumptions.

(3)Bookkeepingbasisandpricingprinciple

TheGroup'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments-whicharemeasuredatfairvalue,thefinancialreportusesthehistoricalcostasthemeasurementbasis.Iftheassetisimpaired,thecorrespondingimpairmentprovisionwillbemadeinaccordancewiththerelevantregulations.

Underhistoricalcostmeasurement,anassetismeasuredatthefairvalueoftheamountofcashorcashequivalentspaidortheconsiderationpaidatthetimeofacquisition.Liabilitiesaremeasuredbytheamountofmoneyorassetsactuallyreceivedasaresultofthepresentobligationisassumed,orthecontractualamountofthepresentobligationisincurred,ortheamountofcashorcashequivalentsexpectedtobepaidintheordinary

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courseoflifetorepaytheliability.Fairvalueisthepricethatmarketparticipantsshallhavetoreceiveforthesaleofanassetorshalltopayforatransferofaliabilityinanorderlytransactionthatoccursonthemeasurementdate.Whetherthefairvalueisobservableorestimatedusingvaluationtechniques,thefairvaluemeasuredanddisclosedinthisfinancialreportisdeterminedonthatbasis.

Forfinancialassetsthatusethetransactionpriceasthefairvalueatthetimeofinitialrecognition,andavaluationtechniqueinvolvingunobservableinputsisusedinsubsequentmeasuresoffairvalue,thevaluationtechniqueiscorrectedduringthevaluationprocesssothattheinitialrecognitionresultdeterminedbythevaluationtechniqueisequaltothetransactionprice.Fairvaluemeasurementisdividedintothreelevelsastotheobservabilityoffairvalueinputs,andtheimportanceofsuchinputstofairvaluemeasurementasavalueinputs,andtheimportanceofsuchinputstofairvaluemeasurementasawhole:

Thefirstlevelofinputistheunadjustedquotationofthesameassetorliabilityinanactivemarketthatcanbeobtainedatthemeasurementdate.

Thesecond-levelinputvalueistheinputvaluethatisdirectlyorindirectlyobservablefortheunderlyingassetorliabilityinadditiontothefirst-levelinput.

Thethirdlevelinputvalueistheunobservableinputvalueoftheunderlyingassetorliability.V.Importantaccountingpoliciesandaccountingestimates

Specificaccountingpoliciesandaccountingestimatestips:

Accordingtothecharacteristicsofitsownproductionandoperation,theCompanydeterminesthedepreciationoffixedassets,amortizationofintangibleassetsandrevenuerecognitionpolicies,andthespecificaccountingpoliciesareshowninnotes(V)15,(V)18and(V)25.

1.Statementofcompliancewithaccountingstandardsforbusinessenterprises

ThefinancialreportpreparedbytheCompanycomplieswiththerequirementsoftheAccountingStandardsforBusinessEnterprisesandtrulyandcompletelyreflectstheconsolidatedandparentfinancialpositionoftheCompanyasofDecember31,2022andtheconsolidatedandparentoperatingresults,theconsolidatedandparentshareholders'equitychangesandtheconsolidatedandparentcashflowsfor2022.

2.AccountingperiodTheGroup'sfiscalyearistheGregoriancalendaryear,i.e.fromJanuary1toDecember31ofeachyear.BusinesscycleThebusinesscycleistheperiodfromthetimeanenterprisepurchasesanassetforprocessingtotherealizationofcashorcashequivalents.TheCompany'sbusinesscycleis12months.

3.BusinesscycleThebusinesscycleistheperiodfromthetimeanenterprisepurchasesanassetforprocessingtotherealizationofcashorcashequivalents.TheCompany'sbusinesscycleis12months.

4.Thebasecurrencyofaccount

RMBisthecurrencyinthemaineconomicenvironmentinwhichtheCompanyanditsdomestic

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subsidiariesoperate,andtheCompanyanditsdomesticsubsidiariesuseRMBasthebaseaccountingcurrency.TheoverseassubsidiariesoftheCompanydetermineRMBastheirbaseaccountingcurrencyaccordingtothecurrencyofthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinthepreparationofthisfinancialreportisRMB.

5.Accountingtreatmentofbusinesscombinationsunderthecommoncontrolandundernon-commoncontrol

Businesscombinationsaredividedintobusinesscombinationsundercommoncontrolandbusinesscombinationsundernon-commoncontrol.

5.1Businesscombinationsundercommoncontrol

Theenterprisesparticipatinginthemergerareultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthemerger,andthecontrolisnottemporary,thereforeitisabusinesscombinationunderthecommoncontrol.

Assetsandliabilitiesacquiredinabusinesscombinationaremeasuredattheircarryingvalueontheconsolidatedpartyatthedateofconsolidation.Thedifferencebetweenthecarryingamountofnetassetsacquiredbythemergingpartyandthecarryingamountofthemergerconsiderationpaidisadjustedfortheequitypremiuminthecapitalreserveorforretainedearningsiftheequitypremiumisinsufficienttobeoffset.

Directcarryingvalueontheconsolidatedpartyatthedateofconsolidation.Thedifferencebetweenthecarryingamountofnetassetsacquiredbythemergingpartyandthecarryingamountofthemergerconsiderationpaidisadjustedfortheequitypremiuminthecapitalreserveorforretainedearningsiftheequitypremiumisinsufficienttobeoffset.

Directexpensesincurredinconnectionwiththebusinesscombinationarerecognizedinprofitorlossfortheperiodwhenincurred.

5.2Businesscombinationsandgoodwillundernon-commoncontrol

Theenterprisesparticipatinginamergerarenotultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthemerger,thereforeitisabusinesscombinationundernon-commoncontrol.

Consolidationcostisthefairvalueofassetspaid,liabilitiesincurredorassumedandequityinstrumentsissuedtogaincontroloftheacquiredpartybythepurchaser.Intermediaryfeessuchasauditing,legalservices,valuationconsultingandotherrelatedmanagementexpensesincurredbythepurchaserforthebusinesscombinationarerecognizedintheprofitorlossoftheperiodwhenincurred.

Theidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireethatareeligibleforrecognitionacquiredbythepurchaserinthemergeraremeasuredatfairvalueatthedateofpurchase.

Thecostofthemergerisgreaterthanthedifferenceinthefairvalueshareoftheacquiree'sidentifiablenetassetsacquiredinthemerger,whichisrecognizedasgoodwillasanassetandinitiallymeasuredatcost.Ifthecostofthemergerislessthanthefairvalueshareoftheacquiree'sidentifiablenetassetsacquiredinthemerger,thefairvalueoftheacquiredacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandthemeasurementofthecostofthemergerarefirstreviewed,andiftheconsolidatedcostafterreviewisstilllessthanthefairvalueshareoftheacquiree'sidentifiablenetassetsshareacquiredinthemerger,whichshallbeincludedinprofitorlossfortheperiodoccurred.

Goodwillresultingfrombusinesscombinationsispresentedseparatelyintheconsolidatedfinancialstatementandmeasuredatcostlessaccumulatedimpairmentprovisions.

6.Methodologyforthepreparationofconsolidatedfinancialstatement

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Theconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstotheinvestorhavingthepowerovertheinvestedparty,enjoyingvariablereturnsthroughparticipatingintherelevantactivitiesoftheinvestedparty,andhavingtheabilitytousethepowerovertheinvestedpartytoaffectitsreturnamount.Oncechangesinrelevantfactsandcircumstancesleadtochangesintherelevantelementsinvolvedintheabovecontroldefinition,thecompanywillconductareassessment.Themergerofasubsidiarybeginswhenthecompanyobtainscontrolofthesubsidiaryandendswhenthecompanylosescontrolofthesubsidiary.ForsubsidiariesdisposedofbytheCompany,theoperatingresultsandcashflowspriortothedisposaldate(thedateoflossofcontrol)havebeenappropriatelyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement.

Forsubsidiariesobtainedthroughbusinesscombinationsnotunderthesamecontrol,theiroperatingresultsandcashflowssincetheacquisitiondate(thedateofobtainingcontrol)havebeenappropriatelyincludedintheconsolidatedincomestatementandtheconsolidatedcashflowstatement.

Forsubsidiariesobtainedthroughbusinesscombinationsunderthesamecontrol,regardlessofwhetherthebusinesscombinationoccursatanypointinthereportingperiod,itisdeemedthatthesubsidiaryisincludedintheconsolidationscopeofthecompanyfromthedateitisunderthecontroloftheultimatecontroller.Itsoperatingresultsandcashflowssincethebeginningoftheearliestperiodinthereportingperiodhavebeenappropriatelyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement.

Themainaccountingpoliciesandaccountingperiodsadoptedbysubsidiariesaredeterminedinaccordancewiththeaccountingpoliciesandaccountingperiodsuniformlystipulatedbythecompany.

TheimpactofinternaltransactionsbetweentheCompanyanditssubsidiariesandbetweensubsidiariesontheconsolidatedfinancialstatementsisoffsetduringconsolidation.

Thesharesintheowner'sequityofsubsidiariesthatdonotbelongtotheparentcompanyaretreatedasminorityshareholders'equityandarelistedas"minorityshareholders'equity"undertheshareholder'sequityitemintheconsolidatedbalancesheet.Theshareofminorityshareholders'equityinthecurrentnetprofitandlossofasubsidiaryislistedas"minorityshareholders'profitandloss"underthenetprofititemintheconsolidatedincomestatement.

"Ifthelossesofasubsidiarysharedbyminorityshareholdersexceedtheminorityshareholders'shareintheinitialowner'sequityofthesubsidiary,thebalanceisstilloffsetagainsttheminorityshareholders'equity.".

Transactionsthatpurchaseminorityequityinasubsidiaryordisposeofpartialequityinvestmentswithoutlosingcontroloverthesubsidiaryareaccountedforasequitytransactions,andthebookvaluesofowner'sequityandminorityshareholders'equityattributabletotheparentcompanyareadjustedtoreflectchangesintheirrelevantrightsandinterestsinthesubsidiary.Thedifferencebetweentheadjustedamountofminorityshareholders'equityandthefairvalueoftheconsiderationpaid/receivedisadjustedtothecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsareadjusted.

7.Classificationofjointventurearrangementclassificationsandaccountingtreatmentmethodsforjointoperations

Jointarrangementsaredividedintocommonly-operatedventuresandjointly-operatedventures,whicharedeterminedinaccordancewiththerightsandobligationsofthejointventurepartiesinthejointventurearrangementbytakingintoaccountfactorssuchasthestructure,legalformandcontractualtermsofthearrangement.Commonly-operatedreferstoajointarrangementinwhichthejointventurepartiesenjoytheassetsrelatedtothearrangementandbeartheliabilitiesrelatedtothearrangement.Thejointly-operatedisajointarrangementinwhichthejointventurepartyhasrightsonlytothenetassetsofthejointarrangement.

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TheGroup'sinvestmentsinjointventuresareaccountedbyusingtheequitymethod,pleaseseeNote(V)

13.3.2"Long-termequityinvestmentsaccountedbytheequitymethod".

8.StandardsfordeterminingcashandcashequivalentsCashreferstocashonhandanddepositsthatcanbeusedtopayatanytime.CashequivalentsrefertoinvestmentsheldbytheGroupforashortperiod(generallywithinthreemonthsfromthedateofpurchase),highlyliquid,easilyconvertibleintoaknownamountofcash,andwithlittleriskofchangeinvalue.

9.Foreigncurrencytransactionsandtranslationofforeigncurrencystatements

9.1ForeignCurrencyBusinessForeigncurrencytransactionsareinitiallyrecognizedatanexchangeratesimilartothespotexchangerateonthedateofthetransaction,andtheexchangeratesimilartothespotrateonthedateofthetransactionisdeterminedinasystematicandreasonablemanner.Atthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedintoRMBusingthespotexchangerateonthatdate,andtheexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthatdateandthespotexchangerateatthetimeofinitialrecognitionorthedayprecedingthebalancesheetdate,except:(1)theexchangedifferenceofforeigncurrencyspecialborrowingseligibleforcapitalizationiscapitalizedduringthecapitalizationperiodandincludedinthecostoftheunderlyingasset;(2)Theexchangedifferenceofhedginginstrumentsforhedginginordertoavoidforeignexchangeriskistreatedaccordingtothehedgeaccountingmethod;(3)Theexchangedifferenceresultsfromchangesinothercarryingbalancesotherthanamortizedcostformonetaryitemsclassifiedasmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincome,itshallberecognizedasprofitorlossfortheperiod.

Wherethepreparationoftheconsolidatedfinancialstatementinvolvesoverseasoperations,ifthereareforeigncurrencymonetaryitemsthatsubstantiallyconstitutenetinvestmentinoverseasoperations,theexchangedifferencearisingfromexchangeratechangesisincludedinthe"foreigncurrencystatementtranslationdifference"itemincludedinothercomprehensiveincome;Whendisposingofoverseasoperations,itisincludedintheprofitorlossoftheperiodofdisposal.

Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostarestillmeasuredatthebasecurrencyamounttranslatedatthespotexchangerateonthedateofthetransaction.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearetranslatedusingthespotexchangerateonthefairvaluedeterminationdate,andthedifferencebetweentheconvertedbasecurrencyamountandtheoriginalaccountingcurrencyamountistreatedasachangeinfairvalue(includingexchangeratechanges)andrecognizedasprofitorlossfortheperiodorrecognizedasothercomprehensiveincome.

9.2TranslationofForeignCurrencyFinancialStatements

Forthepurposeofpreparingconsolidatedfinancialstatement,foreigncurrencyfinancialstatementsforoverseasoperationsareconvertedintoRMBstatementsinthefollowingmanner:allassetsandliabilitiesinthebalancesheetareconvertedatthespotexchangerateatthebalancesheetdate;Shareholders'equityitemsareconvertedatthespotexchangerateatthetimeofincurrence;Allitemsintheincomestatementanditemsreflectingtheamountofprofitdistributionareconvertedatanexchangeratesimilartothespotexchangerateonthedateofthetransaction;Thedifferencebetweentheconvertedassetitemsandthetotalofliabilityitemsandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.

Foreigncurrencycashflowsandcashflowsofoverseassubsidiariesaretranslatedusingexchangerates

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similartothespotexchangerateontheoccurrencedateofcashflow,andtheimpactamountofexchangeratechangesoncashandcashequivalentsisusedasareconciliationitemandisshownseparatelyinthestatementofcashflowsas"Impactofexchangeratechangesoncashandcashequivalents".Theprior-yearyear-endamountsandtheprior-yearactualarepresentedonthebasisoftheamountsconvertedfromtheprior-yearfinancialstatement.WheretheGrouplossescontrolofoverseasoperationsduetodisposingofalltheownershipinterestsinoverseasoperationsorthedisposalofpartoftheequityinvestmentorotherreasons,thedifferenceinthetranslationoftheforeigncurrencystatementsintheownershipinterestsattributabletotheparentcompanyrelatedtotheoverseasoperationsshownbelowtheitemsofshareholders'equityinthebalancesheetshallbetransferredtotheprofitorlossoftheperiodofdisposal.

Wheretheproportionofequityinterestsheldinoverseasoperationsdecreasesduetothedisposalofpartoftheequityinvestmentorotherreasonswithoutlostthecontroloftheoverseasoperations,thedifferenceinthetranslationofforeigncurrencystatementsrelatedtothedisposalpartoftheoverseasoperationsshallbeattributedtotheminorityshareholders'interestsandshallnotbetransferredtotheprofitorlossoftheperiod.Wheredisposingofpartoftheequityofanoverseasoperationinanassociateorajointventure,thedifferenceinthetranslationofforeigncurrencystatementsrelatedtotheoverseasoperationshallbetransferredtotheprofitorlossoftheperiodofdisposalaccordingtotheproportionofthedisposaloftheoverseasoperation.

10.Financialinstruments

TheGrouprecognizesafinancialassetorfinancialliabilitywhenitbecomesapartytoafinancialinstrumentcontract.

Inthecaseofthepurchaseorsaleoffinancialassetsintheusualmanner,itshallrecognizetheassetstobereceivedandtheliabilitiestobeincurredonthetransactiondate,orderecognizetheassetssoldonthetransactiondate.

Financialassetsandfinancialliabilitiesaremeasuredatfairvalueatinitialrecognition.Forfinancialassetsandfinancialliabilitiesmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod,therelatedtransactioncostsarerecognizeddirectlyinprofitorlossfortheperiod;Forothercategoriesoffinancialassetsandfinancialliabilities,therelatedtransactioncostsareincludedintheinitialrecognitionamount.WheretheGroupinitiallyrecognizesaccountsreceivablethatdonotcontainamaterialfinancingcomponentordonottakeintoaccountthefinancingcomponentinacontractnotolderthanoneyearinaccordancewithNo.14AccountingStandardforBusinessEnterprises-Revenue(the"RevenueStandard"),theinitialmeasurementismadeatthetransactionpriceasdefinedbytherevenuestandard.

Theeffectiveinterestratemethodreferstothemethodofcalculatingtheamortizedcostoffinancialassetsorfinancialliabilitiesandapportioninginterestincomeorinterestexpenseintoeachaccountingperiod.

Theeffectiveinterestrateistheinterestrateusedtodiscounttheestimatedfuturecashflowsofafinancialassetorfinancialliabilityovertheexpectedlifeofthefinancialassettothecarryingbalanceofthefinancialassetortheamortizedcostofthefinancialliability.Indeterminingtheeffectiveinterestrate,theexpectedcashflowisestimatedtakingintoaccountallcontractualtermsofthefinancialassetorfinancialliability(suchasearlyrepayment,rollover,calloptionorothersimilaroption,etc.),withouttakingintoaccounttheexpectedcreditloss.

Theamortizedcostofafinancialassetorfinancialliabilityistheamountinitiallyrecognizedlesstheprincipalrepaid,plusorminustheaccumulatedamortizationresultingfromtheamortizationofthedifferencebetweentheinitialrecognitionamountandtheamountduedateusingtheeffectiveinterestratemethod,andthendeducttheaccumulatedprovisionforlosses(forfinancialassetsonly).

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10.1Classification,recognitionandmeasurementoffinancialassetsAfterinitialrecognition,theGroupconductssubsequentmeasurementsofdifferentclassesoffinancialassetsatamortizedcost,measuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,ormeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.Thecontractualclausesofafinancialassetprovidethatthecashflowsgeneratedonagivendateareonlythepaymentofprincipalandinterestbasedontheoutstandingprincipalamount,andtheGroup'sbusinessmodelisaimedformanagingthefinancialassetistocollectcontractualcashflows,thentheGroupclassifiesthefinancialassetasafinancialassetmeasuredatamortizedcost.Suchfinancialassetsmainlyincludemonetaryfunds,notesreceivable,accountsreceivableandotherreceivables.Thecontractualtermsofafinancialassetprovidethatthecashflowsgeneratedataparticulardateareonlythepaymentofprincipalandinterestbasedontheoutstandingprincipalamount,andtheGroup'sbusinessmodelformanagingthefinancialassetisaimedatboththereceiptofcontractualcashflowsandthesaleofthefinancialasset,thenthefinancialassetisclassifiedasafinancialassetmeasuredatfairvalueandthechangethereinisrecognizedinothercomprehensiveincome.Suchfinancialassetswithamaturityofmorethanoneyearfromthedateofacquisitionarelistedasotherdebtinvestments,andiftheymaturewithinoneyear(inclusive)fromthebalancesheetdate,theyareshownasnon-currentassetsmaturingwithinoneyear;Accountsreceivableandnotesreceivableclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincomeatthetimeofacquisitionareshowninreceivablesfinancing,andtheotheracquiredwithamaturityofoneyear(inclusive)areshowninothercurrentassets.

Atinitialrecognition,theGroupmayirrevocablydesignateinvestmentsinnon-tradableequityinstrumentsotherthancontingentconsiderationrecognizedinbusinesscombinationsthatareundernon-commoncontrolasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincomeonasinglefinancialassetbasis.Suchfinancialassetsarelistedasinvestmentsinotherequityinstruments.

Whereafinancialassetmeetsanyofthefollowingconditions,itindicatesthattheGroup'spurposeinholdingthefinancialassetistransactional:

Thepurposeofacquiringtheunderlyingfinancialassetisprimarilyforthepurposeoftherecentsale.

Theunderlyingfinancialassetswerepartofacentrallymanagedportfolioofidentifiablefinancialinstrumentsatthetimeofinitialrecognitionandtherewasobjectiveevidenceofanactualpatternofshort-termprofitsintherecent.

Theunderlyingfinancialassetisaderivativeinstrument,exceptforderivativesthatmeetthedefinitionofafinancialguaranteecontractandderivativesthataredesignatedaseffectivehedginginstruments.

Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodincludefinancialassetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodandfinancialassetsdesignatedasmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod:

Financialassetsthatdonotqualifyasfinancialassetsmeasuredatamortizedcostandfinancialassetsmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincomeareclassifiedasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.

Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theGroupmayirrevocablydesignatefinancialassetsasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.

Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodareshownintradingfinancialassets,andfinancialassetswithmaturityofmorethanoneyear(orhaveanindefinitematurity)fromthebalancesheetdateandexpectedtobeheldformorethanoneyearisshownas

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othernon-currentfinancialassets

10.1.1FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestratemethod,andthegainsorlossesarisingfromimpairmentorderecognitionareincludedinprofitorlossfortheperiod.

TheGrouprecognizesinterestincomeonfinancialassetsmeasuredatamortizedcostinaccordancewiththeeffectiveinterestratemethod.Forfinancialassetspurchasedorderivedthathaveincurredcreditimpairment,theGroupdeterminesinterestincomebasedontheamortizedcostofthefinancialassetandthecredit-adjustedeffectiveinterestratefromtheinitialrecognition.Inaddition,theGroupdeterminesinterestincomebasedonthecarryingbalanceoffinancialassetsmultipliedbytheeffectiveinterestrate.

10.1.2Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinothercomprehensiveincome

Impairmentlossesorgainsandinterestincomecalculatedusingtheeffectiveinterestratemethodrelatedtofinancialassetsclassifiedasmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincomearerecognizedinprofitorlossfortheperiod,andexceptthat,changesinthefairvalueofsuchfinancialassetsarerecognizedinothercomprehensiveincome.Theamountofthefinancialassetrecognizedinprofitorlossforeachperiodisequaltotheamountthatisrecognizedinprofitorlossforeachperiodasifithadbeenmeasuredatamortizedcost.Whenthefinancialassetisderecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognizedinprofitorlossfortheperiod.

Changesinfairvalueininvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandthechangeinwhicharerecognizedinothercomprehensiveincomearerecognizedinothercomprehensiveincome,andwhenthefinancialassetisderecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincometoretainedearnings.DuringtheperiodduringwhichtheGroupholdstheinvestmentinthenon-tradableequityinstrument,thedividendincomeisrecognizedandrecordedinprofitorlossfortheperiodwhentheGroup'srighttoreceivedividendshasbeenestablished,theeconomicbenefitsassociatedwiththedividendsarelikelytoflowintotheGroupandtheamountofthedividendscanbereliablymeasured.

10.1.3Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod

Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodaresubsequentlymeasuredatfairvalue,andgainsorlossesresultingfromchangesinfairvalueanddividendsandinterestincomerelatedtothefinancialassetarerecordedinprofitorlossfortheperiod.

10.2ImpairmentofFinancialInstruments

TheGroupperformsimpairmentaccountingandrecognizeslossprovisionsforfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,andleasereceivablesbasedonexpectedcreditlosses.

TheGroupmeasuresthelossprovisionatanamountequivalenttotheexpectedcreditlossoverthelifeofnotesreceivableandaccountsreceivableformedbytransactionsregulatedbyrevenuestandardsthatdonotcontainamaterialfinancingelementordonottakeintoaccountthefinancingcomponentofcontractsnotexceedingoneyear,aswellasoperatingleasesreceivablearisingfromtransactionsregulatedbyNo.21AccountingStandardforBusinessEnterprises-Leases.

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Forotherfinancialinstruments,theGroupassessesthechangeinthecreditriskoftherelevantfinancialinstrumentssinceinitialrecognitionateachbalancesheetdate,exceptforfinancialassetspurchasedorderivedthathaveincurredcreditimpairment.IfthecreditriskoftheFinancialInstrumenthasincreasedsignificantlysincetheinitialrecognition,theGroupmeasuresitslossprovisionbyanamountequivalenttotheexpectedcreditlossoverthelifeofthefinancialinstrument;Ifthecreditriskofthefinancialinstrumentdoesnotincreasesignificantlysincetheinitialrecognition,theGroupmeasuresitslossprovisionbyanamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Increasesorreversalsofcreditlossprovisionsarerecognizedasimpairmentlossesorgainsinprofitorlossfortheperiod,exceptforfinancialassetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome.Forfinancialassetsclassifiedasmeasuredatfairvalueandthechangethereofisrecordedinothercomprehensiveincome,theGrouprecognizesacreditlossprovisioninothercomprehensiveincomeandincludesimpairmentlossesorgainsinprofitorlossfortheperiodwithoutreducingthecarryingamountofthefinancialassetasshowninthebalancesheet.

WheretheGrouphasmeasuredalossprovisionintheprecedingaccountingperiodbyanamountequivalenttotheexpectedcreditlossoverthelifeofthefinancialinstrument,butthefinancialinstrumentisnolongersubjecttoasignificantincreaseincreditrisksincetheinitialrecognitionattheperiodbalancesheetdate,theGroupmeasuresthelossprovisionforthefinancialinstrumentattheperiodbalancesheetdatebyanamountequivalenttotheexpectedcreditlossinthenext12months,andtheresultingreversalamountforlossprovisionisrecognizedasanimpairmentgaininprofitorlossfortheperiod.

10.2.1Significantincreaseincreditrisk

Usingreasonablyandevidence-basedforward-lookinginformationavailable,theGroupcomparestheriskofdefaultonfinancialinstrumentsatthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondatetodeterminewhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.

Inassessingwhethercreditriskhasincreasedsignificantly,theGroupwillconsiderthefollowingfactors:

(1)whethertheinternalpriceindicatorshavechangedsignificantlyduetochangesincreditrisk.

(2)whethertheinterestrateorothertermsofanexistingfinancialinstrumenthavechangedsignificantly(e.g.,strictercontractualterms,additionalcollateralorhigheryields)iftheexistingfinancialinstrumentisderivedorissuedasanewfinancialinstrumentatthebalancesheetdate.

(3)whethertherehasbeenasignificantchangeintheexternalmarketindicatorsofthecreditriskofthesamefinancialinstrumentorsimilarfinancialinstrumentswiththesameestimatedduration.Theseindicatorsinclude:creditspreads,creditdefaultswappricesforborrowers,thelengthandextenttowhichthefairvalueoffinancialassetsislessthantheiramortizedcost,andothermarketinformationrelevanttoborrowers(suchaschangesinthepriceofborrowers'debtorequityinstruments).

(4)whethertherehasbeenasignificantchangeintheexternalcreditratingofthefinancialinstrumentinfactorexpectation.

(5)whethertheactualorexpectedinternalcreditratingofthedebtorhasbeendowngraded.

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(6)whethertherehasbeenanadversechangeinbusiness,financialoreconomiccircumstancesthatisexpectedtoresultinasignificantchangeinthedebtor'sabilitytomeetitsdebtservicingobligations.

(7)whethertherehasbeenasignificantchangeintheactualorexpectedoperatingresultsofthedebtor.

(8)whetherthecreditriskofotherfinancialinstrumentsissuedbythesamedebtorhasincreasedsignificantly.

(9)whethertherehasbeenasignificantadversechangeintheregulatory,economicortechnicalenvironmentinwhichthedebtorislocated.

(10)whethertherehasbeenasignificantchangeinthevalueofthecollateralusedascollateralforthedebtorinthequalityoftheguaranteeorcreditenhancementprovidedbyathirdparty.Thesechangesareexpectedtoreducetheeconomicincentiveforthedebtortorepaytheloanwithinthetermspecifiedinthecontractoraffecttheprobabilityofdefault.

(11)whethertherehasbeenasignificantchangeintheeconomicincentiveexpectedtoreducetheborrower'srepaymentwithinthetermagreedinthecontract.

(12)whethertherehasbeenachangeintheexpectationsoftheloancontract,includingthewaiveroramendmentofcontractualobligationsthatmayresultfromtheanticipatedbreachofthecontract,thegrantingofinterest-freeperiods,interestratejumps,requestsforadditionalcollateralorguarantees,orotherchangestothecontractualframeworkoffinancialinstruments.

(13)whethertherehasbeenasignificantchangeinthedebtor'sexpectedperformanceandrepaymentbehavior.

(14)WhethertheGroup'screditmanagementmethodsforfinancialinstrumentshavechanged.Regardlessofwhetherthecreditriskhasincreasedsignificantlyaftertheaboveassessment,whenthepaymentofafinancialinstrumentcontracthasbeenoverdueformorethan(inclusive)30days,itindicatesthatthecreditriskofthefinancialinstrumenthasincreasedsignificantly.Atthebalancesheetdate,iftheGroupdeterminesthatafinancialinstrumenthasonlyalowcreditrisk,theGroupassumesthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceitsinitialrecognition.Afinancialinstrumentisconsideredtohavealowcreditriskifithasalowriskofdefault,theborrower'sabilitytomeetitscontractualcashflowobligationsintheshorttermisstrong,andevenifthereareadversechangesintheeconomicsituationandoperatingenvironmentoveralongerperiodoftimethatdonotnecessarilyreducetheborrower'sperformanceofitscontractualcashobligations.

10.2.2Financialassetsthathaveundergonecreditimpairment

WhereoneormoreeventsoccurinwhichtheGroupexpectstoadverselyaffectthefuturecashflowsofafinancialasset,thefinancialassetbecomesafinancialassetthathasexperiencedcreditimpairment.Evidencethatcreditimpairmentoffinancialassetshasoccurredincludesthefollowingobservableinformation:

significantfinancialdifficultiesoftheissuerordebtor;

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Breachofcontractbythedebtor,suchasdefaultordelayinpaymentofinterestorprincipal;Thecreditorgivesthedebtorconcessionsundereconomicorcontractualconsiderationsrelatingtothedebtor'sfinancialdifficultiesthatwouldnothavebeenmadeunderanyothercircumstances;Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;Thefinancialdifficultiesoftheissuerordebtorthatresultinthedisappearanceofanactivemarketforthatfinancialasset;Purchaseorderiveafinancialassetatasubstantialdiscountthatreflectsthefactthatacreditlosshasoccurred.BasedontheGroup'sinternalcreditriskmanagement,theGroupconsidersaneventofdefaulttohaveoccurredwhentheinternallyadvisedorexternallyobtainedinformationindicatesthatthedebtorofthefinancialinstrumentcannotfullypaycreditorsincludingtheGroup(withoutregardtoanysecurityobtainedbytheGroup).Notwithstandingtheaboveassessment,ifacontractpaymentforafinancialinstrumentisoverdueformorethan90days(inclusive),theGrouppresumesthatthefinancialinstrumenthasdefaulted.

10.2.3DeterminationofExpectedCreditLossTheGroupusesanimpairmentmatrixonaportfoliobasisonnotesreceivable,accountsreceivableandotherreceivablestodeterminecreditlossesonrelevantfinancialinstruments.TheGroupclassifiesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.ThecommoncreditriskcharacteristicsadoptedbytheGroupinclude:typeoffinancialinstrument,creditriskrating,typeofcollateral,dateofinitialrecognition,industryinwhichthedebtorisin,valueofcollateralrelativetofinancialassets,etc.

Forfinancialassetsandleasereceivables,theexpectedcreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsduetotheGroupandthecashflowsexpectedtobecollected.ThereflectionfactorsoftheGroup'smethodologyformeasuringexpectedcreditlossesonfinancialinstrumentsinclude:anunbiasedprobability-weightedaverageamountdeterminedbyevaluatingarangeofpossibleoutcomes;thetimevalueofmoney;reasonableandwell-foundedinformationaboutpastevents,currentconditions,andprojectionsoffutureeconomicconditionsthatcanbeobtainedatthebalancesheetdatewithoutunnecessaryadditionalcostsorefforts.

10.2.4Write-downofFinancialAssets

WheretheGroupnolongerreasonablyexpectsthatthecontractualcashflowsoffinancialassetswillberecoveredinwholeorinpart,thecarryingbalanceofthefinancialassetswillbewrittendowndirectly.Suchwrite-downsconstitutederecognitionoftheunderlyingfinancialassets.

10.3TransferofFinancialAssets

Financialassetsthatmeetoneofthefollowingconditionsarederecognized:(1)thecontractualrighttoreceivecashflowsfromthefinancialassetisterminated;(2)thefinancialassethasbeentransferredandsubstantiallyalloftherisksandrewardsintheownershipofthefinancialassethavebeentransferredtothetransferringparty;(3)thefinancialassethasbeentransferred,andalthoughtheGrouphasneithertransferred

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norretainedsubstantiallyalloftherisksandrewardsintheownershipofthefinancialasset,ithasnotretainedcontroloverthefinancialasset.

WheretheGroupneithertransfersnorretainssubstantiallyalloftherisksandrewardsinownershipofafinancialasset,andretainscontrolofthefinancialasset,itwillcontinuetorecognizethetransferredfinancialassettotheextentthatitcontinuestobeinvolvedinthetransferredfinancialassetandrecognizetherelevantliabilitiesaccordingly.TheGroupmeasurestherelevantliabilitiesasfollows:

Wherethetransferredfinancialassetsaremeasuredatamortizedcost,thecarryingamountoftherelevantliabilityisequaltothecarryingamountofthefinancialassetthatcontinuestobeinvolvedinthetransferredlesstheamortizedcostoftherightsretainedbytheGroup(iftheGroupretainstherelevantrightsasaresultofthetransferoffinancialassets)plustheamortizedcostoftheobligationsassumedbythegroup(ifthegrouphasassumedtherelevantobligationsasaresultofthetransferoffinancialassets),andtherelevantliabilitiesarenotdesignatedasfinancialliabilitiesmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.

Wherethetransferredfinancialassetsaremeasuredatfairvalue,thecarryingamountoftherelevantliabilitiesisequaltothecarryingamountofthefinancialassetsthatcontinuetobeinvolvedinthetransferredfinancialassetslessthefairvalueoftherightsretainedbytheGroup(iftheGroupretainstherelevantrightsasaresultofthetransferoffinancialassets)plusthefairvalueoftheobligationsassumedbytheGroup(iftheGrouphasassumedsuchobligationsasaresultofthetransferoffinancialassets),thefairvalueofsuchrightsandobligationsisthefairvaluewhenmeasuredonanindependentbasis.

Iftheoveralltransferoffinancialassetssatisfiestheconditionsforderecognition,thedifferencebetweenthecarryingamountofthetransferredfinancialassetsatthederecognitiondateandtheconsiderationreceivedasaresultofthetransferofthefinancialandthesumoftheamountcorrespondingtothederecognitionportionoftheaccumulatedfairvaluechangeoriginallyincludedinothercomprehensiveincomeisincludedinprofitorlossfortheperiod.IftheGrouptransfersfinancialassetsthatareinvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,theaccruedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.

Ifapartialtransferoffinancialassetssatisfiestheconditionsforderecognition,thecarryingamountofthefinancialassetsasawholebeforethetransferisapportionedbetweenthederecognizedportionandthecontinuingrecognitionportionattherespectiverelativefairvalueonthetransferdate,andthedifferencebetweenthesumoftheamountoftheconsiderationreceivedinthederecognizedportionandtheamountcorrespondingtothederecognizedportionoftheaccumulatedfairvaluechangeoriginallyincludedinothercomprehensiveincomeandthecarryingamountofthederecognizedportionatthederecognitiondateisincludedinprofitorlossforthecurrentperiod.IftheGrouptransfersfinancialassetsthatareinvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,theaccruedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.

Iftheconditionsforderecognitionarenotmetfortheoveralltransferoffinancialassets,theGroupcontinuestorecognizethetransferredfinancialassetsasawholeandrecognizestheconsiderationreceivedasaliability.

10.4Classificationoffinancialliabilitiesandequityinstruments

TheGroupclassifiesthefinancialinstrumentsortheircomponentsasfinancialliabilitiesorequityinstrumentsatinitialrecognitionaccordingtothecontracttermsofthefinancialinstrumentsissuedandtheir

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economicessence,notjustinlegalform,combinedwiththedefinitionsoffinancialliabilitiesandequityinstruments.

10.4.1Classification,recognitionandmeasurementoffinancialliabilitiesFinancialliabilitiesaredividedintofinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesatinitialrecognitionandotherfinancialliabilities.

10.4.1.1FinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlossesFinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesincludetransactionalfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses.Exceptforderivativefinancialliabilitieswhicharelistedseparately,financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesarelistedastransactionalfinancialliabilities.

Financialliabilitiesthatmeetoneofthefollowingconditions,indicatethatthepurposeoftheGroup'sfinancialliabilitiesistransactional:

Thepurposeofundertakingrelevantfinancialliabilitiesismainlytorepurchaseinthenearfuture.

Therelevantfinancialliabilitiesarepartoftheidentifiablefinancialinstrumentportfolioundercentralizedmanagementattheinitialrecognition,andthereisobjectiveevidencetoshowtheactualshort-termprofitmodelinthenearfuture.

Relatedfinancialliabilitiesarederivatives.Exceptforderivativesthatmeetthedefinitionoffinancialguaranteecontractandderivativesthataredesignatedaseffectivehedginginstruments.

TheGroupcandesignatefinancialliabilitiesthatmeetoneofthefollowingconditionsasfinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesatinitialrecognition:(1)Thedesignationcaneliminateorsignificantlyreduceaccountingmismatch;(2)AccordingtotheriskmanagementorinvestmentstrategystatedintheformalwrittendocumentsoftheGroup,thefinancialliabilityportfolioortheportfoliooffinancialassetsandfinancialliabilitiesaremanagedandevaluatedonthebasisoffairvalue,andreportedtokeymanagementpersonnelwithintheGrouponthisbasis;(3)Qualifiedmixedcontractscontainingembeddedderivatives.

Transactionalfinancialliabilitiesaresubsequentlymeasuredatfairvalue,andgainsorlossescausedbychangesinfairvalueanddividendsorinterestexpensesrelatedtothesefinancialliabilitiesareincludedincurrentprofitsandlosses.

Forfinancialliabilitiesdesignatedasbeingmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses,thechangesinfairvalueofthefinancialliabilitiescausedbychangesintheGroup'sowncreditriskareincludedinothercomprehensiveincome,andotherchangesinfairvalueareincludedinthecurrentprofitsandlosses.Whenthefinancialliabilitiesarederecognized,theaccumulatedchangeofitsfairvaluecausedbythechangeoftheirowncreditriskpreviouslyincludedinothercomprehensiveincomeiscarriedforwardtoretainedincome.Dividendsorinterestexpensesrelatedtothesefinancialliabilitiesareincludedinthecurrentprofitsandlosses.Iftheaccountingmismatchinprofitandlosswillbecausedorenlargedbyhandlingtheimpactofthechangesincreditriskofthesefinancialliabilitiesintheaboveway,theGroupwillincludeallthegainsorlossesofthefinancialliabilities(includingtheamountaffectedbythechangesincreditrisk)inthecurrentprofitsandlosses.

10.4.1.2Otherfinancialliabilities

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Otherfinancialliabilities,exceptthosecausedbythetransferoffinancialassetsthatdonotmeettheconditionsforderecognitionorcontinuetobeinvolvedinthetransferredfinancialassets,areclassifiedasfinancialliabilitiesmeasuredinamortizedcostandsubsequentlymeasuredinamortizedcost.Thegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.IfthemodificationorrenegotiationofthecontractbetweentheGroupandthecounterpartydoesnotresultintheterminationoftherecognitionofthefinancialliabilitiesthataresubsequentlymeasuredaccordingtoamortizedcost,butthecashflowofthecontractchanges,theGrouprecalculatesthebookvalueofthefinancialliabilitiesandrecordstherelevantgainsorlossesintothecurrentprofitsandlosses.TherecalculatedbookvalueofsuchfinancialliabilitiesisdeterminedbytheGroupaccordingtothepresentvalueofdiscountedcontractcashflowthatwillberenegotiatedormodifiedaccordingtotheoriginalactualinterestrateofthefinancialliabilities.Forallcostsorexpensesarisingfromthemodificationorrenegotiationofthecontract,theGroupadjuststhebookvalueofthemodifiedfinancialliabilitiesandamortizesthemwithintheremainingtermofthemodifiedfinancialliabilities.

10.4.2Derecognitionoffinancialliabilities

Ifallorpartofthecurrentobligationsoffinancialliabilitieshavebeendischarged,therecognitionoffinancialliabilitiesorpartthereofshallbeterminated.IftheGroup(theBorrower)andtheLenderwillsignanagreementtoreplacetheoriginalfinancialliabilitiesbyundertakingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheoriginalfinancialliabilities,theGroupwillderecognizetheoriginalfinancialliabilitiesandrecognizethenewfinancialliabilitiesatthesametime.

Ifallorpartofthefinancialliabilitiesarederecognized,thedifferencebetweenthebookvalueofthederecognizedpartandtheconsiderationpaid(includingthetransferrednon-cashassetsorthenewfinancialliabilitiesundertaken)willbeincludedinthecurrentprofitsandlosses.

10.4.3Equityinstruments

EquityinstrumentsrefertocontractsthatcanprovethattheGrouphasresidualinterestsinassetsafterdeductingallliabilities.Theissuance(includingrefinancing),repurchase,saleorcancellationofequityinstrumentsbytheGrouparetreatedaschangesinequity.TheGroupdoesnotrecognizechangesinthefairvalueofequityinstruments.Transactioncostsrelatedtoequitytransactionsaredeductedfromequity.

ThedistributionofequityinstrumentholdersbytheGroupistreatedasprofitdistribution,andthestockdividendspaiddonotaffectthetotalshareholders'equity.

10.5Offsetoffinancialassetsandfinancialliabilities

WhentheGrouphasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilities,andthislegalrightiscurrentlyenforceable,andtheGroupplanstosettlethefinancialassetsonanetbasisorrealizethefinancialassetsandpayoffthefinancialliabilitiesatthesametime,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetattheamountafteroffsettingeachother.Inaddition,financialassetsandfinancialliabilitiesarelistedseparatelyinthebalancesheetanddonotoffseteachother.

11.Receivablefinancing

Fornotesreceivableclassifiedasatfairvalueandwhosechangesareincludedinothercomprehensiveincome,thepartwithatermofoneyear(includingoneyear)fromthedateofacquisitionislistedasreceivablefinancing;thepartwithatermofmorethanoneyearfromthedateofacquisitionislistedasothercreditor's

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rightinvestment.SeeNote(3)10"FinancialInstruments"forrelevantaccountingpolicies.

12.Inventory

12.1ClassificationofinventoryTheGroup'sinventorymainlyincludesrawmaterials,productsinprocess,finishedproductsandmaterialsentrustedforprocessing.Inventoryisinitiallymeasuredatcost,whichincludespurchasingcost,processingcostandotherexpensesincurredtomakeinventoryreachthecurrentplaceandusestate.

12.2ValuationmethodofissuedinventoryWhentheinventoryisissued,theactualcostoftheissuedinventoryisdeterminedbytheweightedmeanmethod.

12.3DeterminationbasisofnetrealizablevalueofinventoryOnthebalancesheetdate,inventoriesaremeasuredaccordingtothelowerofcostandnetrealizablevalue.Whenthenetrealizablevalueislowerthanthecost,theinventorydepreciationprovisioniswithdrawn.

Netrealizablevaluereferstotheestimatedsellingpriceofinventoryminustheestimatedcost,estimatedsalesexpensesandrelatedtaxesandfeesatthetimeofcompletionindailyactivities.Whendeterminingthenetrealizablevalueofinventory,itisbasedontheconclusiveevidenceobtained,andthepurposeofholdinginventoryandtheinfluenceofeventsafterthebalancesheetdatearealsoconsidered.

Inventorydepreciationprovisionisdrawnaccordingtothedifferencebetweenthecostofasingleinventoryitemanditsnetrealizablevalue.

Aftertheinventorydepreciationprovisioniswithdrawn,iftheinfluencingfactorsofpreviouswrite-downofinventoryvaluehavedisappeared,resultinginthenetrealizablevalueofinventorybeinghigherthanitsbookvalue,itwillbereversedwithintheoriginalamountofinventorydepreciationprovision,andthereversedamountwillbeincludedinthecurrentprofitsandlosses.

12.4Inventorysystem

Theinventorysystemisperpetualinventorysystem.

12.5Amortizationmethodoflow-valueconsumablesandpackagingmaterials

Turnovermaterialsandlow-valueconsumablesareamortizedbystraight-linemethodorone-timewrite-offmethod.

13.Long-termequityinvestment

13.1Criteriaforjointcontrolandimportantinfluence

Controlmeansthattheinvestorhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytoinfluencetheamountofreturnsbyusingthepowerovertheinvestee.Jointcontrolreferstothecommoncontrolofanarrangementaccordingtotherelevantagreement,andthattherelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhosharethecontrolrightsbeforemakingdecisions.Significantinfluencereferstothepowertoparticipateindecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butitcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhethertheinvesteecanbecontrolledorexertsignificantinfluence,thepotentialvotingrightsfactorssuchasconvertiblecorporatebondsandcurrent

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executablewarrantsoftheinvesteeheldbyinvestorsandotherpartieshavebeenconsidered.

13.2DeterminationofinitialinvestmentcostForthelong-termequityinvestmentobtainedbybusinessmergerunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheshareofthebookvalueoftheowners'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate.Thecapitalreserveshallbeadjustedforthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthebookvalueofcashpaid,non-cashassetstransferredanddebtsundertaken;Ifthecapitalreserveisinsufficienttobeoffset,theretainedincomeshallbeadjusted.Ifequitysecuritiesareissuedasthemergerconsideration,theinitialinvestmentcostoflong-termequityinvestmentshallbetheshareofthebookvalueoftheowners'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate,thesharecapitalshallbethetotalfacevalueofissuedshares,andthecapitalreserveshallbeadjustedaccordingtothedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthetotalfacevalueoftheissuedshares;Ifthecapitalreserveisinsufficienttobeoffset,theretainedincomeshallbeadjusted.Forthelong-termequityinvestmentobtainedfromthebusinessmergernotunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbethemergercostonthepurchasedate.Intermediaryexpensessuchasaudit,legalservices,evaluationandconsultationandotherrelatedmanagementexpensesincurredbythemergingpartyorthepurchaserforbusinessmergerareincludedinthecurrentprofitsandlosseswhenincurred.

Long-termequityinvestmentobtainedbyothermeansexceptthelong-termequityinvestmentformedbybusinessmergershallbeinitiallymeasuredatcost.Iftheadditionalinvestmentcanexertasignificantinfluenceorimplementjointcontrolwhichhoweverdoesnotconstitutecontrolontheinvestee,thelong-termequityinvestmentcostisthesumofthefairvalueoftheoriginalequityinvestmentdeterminedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsplusthenewinvestmentcost.

13.3Subsequentmeasurementandprofitandlossrecognitionmethod

13.3.1Long-termequityinvestmentcalculatedbycostmethod

Thecompany'sfinancialstatementsusethecostmethodtocalculatethelong-termequityinvestmentinsubsidiaries.SubsidiariesrefertotheinvestedentitiesoverwhichtheGroupcanexercisecontrol.

Long-termequityinvestmentaccountedbycostmethodismeasuredattheinitialinvestmentcost.Addorrecoverinvestmenttoadjustthecostoflong-termequityinvestment.Thecurrentinvestmentincomeisrecognizedaccordingtothecashdividendorprofitdeclaredbytheinvestee.

13.3.2Long-termequityinvestmentcalculatedbyequitymethod

TheGroup'sinvestmentinassociatedenterprisesandjointventuresisaccountedforbytheequitymethod.AnassociatedenterprisereferstotheinvesteeoverwhichtheGroupcanexertsignificantinfluence,andajointventurereferstoajointventurearrangementinwhichtheGrouphasrightsonlyoverthenetassetsofthearrangement.

Whenaccountingbyequitymethod,iftheinitialinvestmentcostoflong-termequityinvestmentisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheinvestee,theinitialinvestmentcostoflong-termequityinvestmentwillnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvestee,thedifferenceshallbeincludedinthecurrentprofitsandlosses,andthe

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costoflong-termequityinvestmentshallbeadjusted.Whenaccountingbytheequitymethod,theinvestmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofthenetprofitandlossandothercomprehensiveincomerealizedbytheinvestee,andthebookvalueoflong-termequityinvestmentisadjusted;Theshareiscalculatedaccordingtotheprofitorcashdividenddeclaredbytheinvestee,andthebookvalueoflong-termequityinvestmentisreducedaccordingly;Forotherchangesintheowners'equityoftheinvesteeexceptthenetprofitandloss,othercomprehensiveincomeandprofitdistribution,thebookvalueofthelong-termequityinvestmentshallbeadjustedandincludedinthecapitalreserve.Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,thenetprofitoftheinvesteeshallbeadjustedandrecognizedbasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofinvestment.IftheaccountingpoliciesandaccountingperiodsadoptedbytheinvesteeareinconsistentwiththoseoftheCompany,thefinancialstatementsoftheinvesteeshallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany,soastorecognizetheinvestmentincomeandothercomprehensiveincome.ForthetransactionsbetweentheGroupandtheassociatedenterprisesandjointventures,iftheassetsinvestedorsolddonotconstitutebusiness,theunrealizedinternaltransactiongainsandlossesshallbeoffsetbytheportionbelongingtotheGroupaccordingtotheproportionenjoyed,andtheinvestmentgainsandlossesshallberecognizedonthisbasis.However,theunrealizedinternaltransactionlossesbetweentheGroupandtheinvesteebelongtotheimpairmentlossesofthetransferredassetsandshallnotbeoffset.

Whenrecognizingtheshareofthenetlossoftheinvestee,thebookvalueofthelong-termequityinvestmentandotherlong-termrightsandintereststhatsubstantiallyconstitutethenetinvestmentoftheinvesteeshallbewrittendowntozero.Inaddition,iftheGroupisobligatedtobearadditionallossestotheinvestee,theestimatedliabilitieswillberecognizedaccordingtotheexpectedobligationsandincludedinthecurrentinvestmentlosses.Iftheinvesteerealizesthenetprofitinthefuture,theGroupwillresumetherecognitionoftheincomeshareaftertheincomesharemakesupfortheunrecognizedlossshare.

13.4Disposaloflong-termequityinvestment

Whendisposingoflong-termequityinvestment,thedifferencebetweenitsbookvalueandtheactualpurchasepriceisincludedinthecurrentprofitsandlosses.Forthelong-termequityinvestmentaccountedbytheequitymethod,iftheremainingequityafterdisposalisstillaccountedbytheequitymethod,othercomprehensiveincomeoriginallyaccountedbytheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee;Owners'equityrecognizedbychangesinotherowners'equityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbecarriedforwardtocurrentprofitsandlossesinproportion.Ifthelong-termequityinvestmentaccountedforbythecostmethodisstillaccountedforbythecostmethodafterdisposal,theothercomprehensiveincomerecognizedbytheequitymethodaccountingortherecognitionoffinancialinstrumentsandaccountingstandardsbeforegainingcontroloftheinvesteeshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee;Changesinowners'equityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistributioninthenetassetsoftheinvesteerecognizedbyusingtheequitymethodarecarriedforwardtothecurrentprofitsandlossesinproportion.

IftheGrouplosescontroloftheinvesteeduetothedisposalofpartofitsequityinvestment,iftheremainingequityafterdisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvesteeinthepreparationofindividualfinancialstatements,itshallbeaccountedforbytheequitymethodinstead,andtheremainingequityshallbetreatedasifitwereadjustedbytheequitymethodatthetimeofacquisition;Iftheremainingequityafterdisposalcannotbejointlycontrolledorexertsignificantinfluenceontheinvestee,itshall

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beaccountedforaccordingtotherelevantprovisionsofthestandardsfortherecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateofcontrollossshallbeincludedinthecurrentprofitsandlosses.ForothercomprehensiveincomerecognizedbytheGroupbeforeitgainscontroloftheinvestee,whenitlosescontroloftheinvestee,itshallbetreatedonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.Changesinowners'equityinthenetassetsoftheinvestee,exceptnetprofitandloss,othercomprehensiveincomeandprofitdistribution,shallbecarriedforwardtocurrentprofitsandlosseswhenitlosescontroloftheinvestee.Iftheremainingequityafterdisposalisaccountedbytheequitymethod,othercomprehensiveincomeandotherowners'equitywillbecarriedforwardinproportion;Iftheremainingequityafterdisposalischangedtoaccountingtreatmentaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,allothercomprehensiveincomeandotherowners'equitywillbecarriedforward.IftheGrouplosesjointcontrolorsignificantinfluenceontheinvesteeduetothedisposalofsomeequityinvestments,theremainingequityafterdisposalshallbeaccountedforaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateofjointcontrollossorsignificantinfluenceshallbeincludedinthecurrentprofitsandlosses.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetoaccountingbytheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesbytheinvesteewhentheequitymethodisterminated.Alltheowners'equityrecognizedbytheinvesteeduetochangesinotherowners'equityexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbecarriedforwardtothecurrentinvestmentincomewhentheequitymethodisterminated.

TheGroupdisposesoftheequityinvestmentinitssubsidiariesstepbystepthroughmultipletransactionsuntilitlosescontrol.Iftheabovetransactionsbelongtoapackagetransaction,eachtransactionwillbetreatedasatransactionthatdisposesoftheequityinvestmentinitssubsidiariesandlosescontrol.Beforelosingcontrol,thedifferencebetweenthepriceofeachdisposalandthebookvalueofthelong-termequityinvestmentcorrespondingtothedisposedequitywillberecognizedasothercomprehensiveincome,andthencarriedforwardtothecurrentprofitsandlosseswhenitlosescontrol.

14.InvestmentrealestateMeasurementmodelofinvestmentrealestateMeasurementbycostmethodDepreciationoramortizationmethod

Investmentrealestatereferstorealestateheldtoearnrentorcapitalappreciation,orboth,includingrentedhousesandbuildings.

Investmentrealestateisinitiallymeasuredatcost.Subsequentexpendituresrelatedtoinvestmentrealestateareincludedinthecostofinvestmentrealestateiftheeconomicbenefitsrelatedtotheassetarelikelytoflowinandthecostcanbemeasuredreliably.Othersubsequentexpendituresareincludedinthecurrentprofitsandlosseswhenincurred.

TheGroupadoptsthecostmodelforsubsequentmeasurementofinvestmentrealestate,anddepreciatesoramortizesitaccordingtothepolicyconsistentwiththerighttousehouses,buildingsorland.

Whentheinvestmentrealestateisdisposedof,orpermanentlywithdrawnfromuse,anditisnotexpectedtoobtaineconomicbenefitsfromitsdisposal,therecognitionoftheinvestmentrealestatewillbeterminated.

Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentrealestateafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitsandlosses.

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15.Fixedassets

15.1RecognitionconditionsFixedassetsrefertotangibleassetsheldforproducinggoods,providingservices,leasingormanagement,withaservicelifeofmorethanonefiscalyear.FixedassetsarerecognizedonlywhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.Subsequentexpendituresrelatedtofixedassetsshallbeincludedinthecostoffixedassetsiftheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowinandthecostcanbemeasuredreliably,andthebookvalueofthereplacedpartshallbederecognized.Othersubsequentexpendituresareincludedinthecurrentprofitsandlosseswhenincurred.

15.2DepreciationmethodFixedassetsshallbedepreciatedwithintheirservicelifebyusingthelife-averagemethodfromthemonthfollowingthescheduledserviceablestate.Thedepreciationmethods,servicelife,estimatednetsalvageandannualdepreciationrateofvariousfixedassetsareasfollows:

Category	Depreciationlife(year)	Estimatednetsalvagerate(%)	Annualdepreciationrate(%)
Housesandbuildings	10-40	0.00-4.00	2.40-10.00
Machineryequipment	10-14	4.00	6.86-9.60
Transportationequipment	8	4.00	12.00
Electronicequipmentandothers	5	4.00	19.20

EstimatednetsalvagereferstotheamountthattheGroupcurrentlyobtainsfromthedisposaloffixedassetsafterdeductingtheestimateddisposalexpenses,assumingthattheexpectedservicelifeofthefixedassetshasexpiredandisintheexpectedstateattheendoftheservicelife.

15.3Otherinstructions

Whenthefixedassetsaredisposedoforitisexpectedthatnoeconomicbenefitscanbegeneratedthroughtheuseordisposal,thefixedassetsisderecognized.Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageoffixassetsafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitsandlosses.

Atleastattheendoftheyear,theGroupwillreviewtheservicelife,estimatednetsalvageanddepreciationmethodoffixedassets,andifthereisanychange,itwillbetreatedasachangeinaccountingestimate.

16.Constructioninprogress

Theconstructioninprogressismeasuredaccordingtotheactualcost,whichincludesvariousprojectexpendituresincurredduringtheconstructionperiod,capitalizedborrowingcostsbeforetheprojectreachesthescheduledserviceablestateandotherrelatedexpenses.Nodepreciationisallowedforconstructioninprogress.Constructioninprogressiscarriedforwardtofixedassetsafteritreachesthescheduledserviceablestate.

17.Borrowingcosts

Borrowingcoststhatcanbedirectlyattributedtothepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditionswillbecapitalizedwhentheassetexpenditurehasoccurred,theborrowingcostshaveoccurred,andthenecessarypurchase,constructionorproductionactivitiestomaketheassetsreach

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thepredeterminedserviceableorsaleablestatehavebegun;Capitalizationshallstopwhentheassetsthatmeetthecapitalizationconditionspurchased,constructedorproducedreachthepredeterminedserviceablestateorsaleablestate.Theremainingborrowingcostsarerecognizedasexpensesinthecurrentperiod.

18.Intangibleassets

18.1Valuationmethod,servicelifeandimpairmenttestofintangibleassetsIntangibleassetsincludelanduserights,softwareandpatentrights.

Intangibleassetsareinitiallymeasuredatcost.Intangibleassetswithlimitedservicelifeshallbeamortizedbystraight-linemethodinequalinstallmentswithintheirexpectedservicelifefromthetimetheyareavailableforuse.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethod,servicelifeandestimatednetsalvageofvariousintangibleassetsareasfollows:

Category	Amortizationmethod	Servicelife(year)	Estimatednetsalvagerate(%)
Landuseright	Straight-linemethod	50	-
Software	Straight-linemethod	5	-
Patent	Straight-linemethod	15	-

Attheendoftheperiod,theservicelifeandamortizationmethodofintangibleassetswithlimitedservicelifeshallbereviewedandadjustedifnecessary.

Fortheimpairmenttestofintangibleassets,pleaserefertoNote(V)19"ImpairmentofLong-termAssets"fordetails.

18.2InternalR&Dexpenditure

Expenditureintheresearchstageisincludedinthecurrentprofitsandlosseswhenincurred.

Expendituresinthedevelopmentstagearerecognizedasintangibleassetsiftheymeetthefollowingconditionsatthesametime.Expendituresinthedevelopmentstagethatcannotmeetthefollowingconditionsareincludedinthecurrentprofitsandlosses:

(1)Itistechnicallyfeasibletocompletetheintangibleassetssothattheycanbeusedorsold;

(2)Havingtheintentiontocompletetheintangibleassetsanduseorsellthem;

(3)Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingtheabilitytoprovethattheproductsproducedbyusingtheintangibleassetsexistinthemarketortheintangibleassetsthemselvesexistinthemarket,andtheintangibleassetswillbeusedinternally,whichcanprovetheirusefulness;

(4)Havingsufficienttechnical,financialandotherresourcestosupportthedevelopmentoftheintangibleassets,andhavingtheabilitytouseorselltheintangibleassets;

(5)Expenditureattributabletothedevelopmentstageoftheintangibleassetscanbereliablymeasured.

Ifitisimpossibletodistinguishbetweenresearchstageexpenditureanddevelopmentstageexpenditure,alltheR&Dexpendituresincurredshallbeincludedinthecurrentprofitsandlosses.Thecostofintangibleassetsformedbyinternaldevelopmentactivitiesonlyincludesthetotalexpenditurefromthetimewhenthecapitalizationconditionsaremettothetimewhentheintangibleassetsreachtheintendeduse,andtheexpenditurethathasbeenexpensedintoprofitandlossbeforethecapitalizationconditionsaremetinthedevelopmentprocesswillnotbeadjusted.

19.Long-termassetimpairment

Oneachbalancesheetdate,theGroupcheckswhethertherearesignsthatlong-termequityinvestment,

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investmentrealestatemeasuredbycostmethod,fixedassets,constructioninprogress,right-to-useassetsandintangibleassetswithdefiniteservicelifemaybeimpaired.Iftheseassetsshowsignsofimpairment,therecoverableamountisestimated.Intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheserviceablestatearetestedforimpairmenteveryyear,regardlessofwhetherwithsignsofimpairment.Estimatingtherecoverableamountofanassetisbasedonasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupisdeterminedbasedontheassetgrouptowhichtheassetbelongs.Therecoverableamountisthehigherofthenetamountofthefairvalueoftheassetorassetgroupminusthedisposalexpensesorthepresentvalueofitsexpectedfuturecashflow.

Iftherecoverableamountofanassetislowerthanitsbookvalue,theassetimpairmentprovisionshallbeaccruedaccordingtothedifferenceandincludedinthecurrentprofitsandlosses.

Goodwillshallbetestedforimpairmentatleastattheendofeachyear.Whentestingtheimpairmentofgoodwill,itshallbeconductedincombinationwiththerelatedassetgrouporassetgroupportfolio.Thatis,fromthepurchasedate,thebookvalueofgoodwillisallocatedtotheassetgrouporassetgroupportfoliothatcanbenefitfromthesynergisticeffectofbusinessmergerinareasonableway.Iftherecoverableamountoftheassetgrouporassetgroupportfoliocontainingtheallocatedgoodwillislowerthanitsbookvalue,thecorrespondingimpairmentlosswillberecognized.Theamountofimpairmentlosswillfirstlydeductthebookvalueofgoodwillallocatedtotheassetgrouporassetgroupportfolio,andthendeductthebookvalueofotherassetsaccordingtotheproportionofthebookvalueofassetsotherthangoodwillintheassetgrouporassetgroupportfolio.

Oncetheabove-mentionedassetimpairmentlossesarerecognized,theywillnotbereversedinfutureaccountingperiods.

20.Long-termdeferredexpenses

Long-termdeferredexpensesrefertotheexpensesthathaveoccurredbutshouldbebornebythecurrentperiodandsubsequentperiodswithanamortizationperiodofmorethanoneyear.Long-termdeferredexpensesshallbeamortizedevenlybystagesduringtheexpectedbenefitperiod.

21.Contractualliabilities

ContractualliabilitiesrefertotheobligationoftheGrouptotransfergoodsorservicestocustomersforconsiderationreceivedorreceivablefromcustomers.Contractassetsandliabilitiesunderthesamecontractarelistedonanetbasis.

22.EmployeeRemuneration

22.1Accountingtreatmentmethodofshort-termRemuneration

DuringtheaccountingperiodwhenemployeesprovideservicesfortheGroup,theGrouprecognizestheactualshort-termremunerationasaliability,andrecordsitintothecurrentprofitsandlossesorrelatedassetcosts.TheemployeewelfareexpensesincurredbytheGroupareincludedinthecurrentprofitsandlossesorrelatedassetcostsaccordingtotheactualamountwhenactuallyincurred.Ifemployeewelfareexpensesarenon-monetarybenefits,theyshallbemeasuredatfairvalue.

Thesocialinsurancepremiumssuchasmedicalinsurancepremium,workinjuryinsurancepremiumand

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maternityinsurancepremiumandhousingprovidentfundpaidbytheGroupforemployees,aswellasthetradeunionfundsandemployeeeducationfundswithdrawnbytheGroupaccordingtoregulations,shallbecalculatedaccordingtothestipulatedaccrualbasisandaccrualratioduringtheaccountingperiodwhenemployeesprovideservicesfortheGrouptodeterminetheemployeecompensationamount,andrecognizethecorrespondingliabilities,andbeincludedinthecurrentprofitsandlossesorrelatedassetcosts.

22.2Accountingtreatmentofpost-employmentbenefitsPost-employmentbenefitsarealldefinedcontributionplans.DuringtheaccountingperiodwhenemployeesprovideservicesfortheGroup,theamountpayablecalculatedaccordingtothesetdepositplanisrecognizedasaliability,andincludedinthecurrentprofitsandlossesorrelatedassetcosts.

22.3AccountingtreatmentofdismissalbenefitsIftheGroupprovidesdismissalbenefitstoemployees,theemployeecompensationliabilitiesarisingfromthedismissalbenefitsshallberecognizedattheearlierofthefollowingtwodates,andincludedinthecurrentprofitsandlosses:whentheGroupcannotunilaterallywithdrawthedismissalbenefitsprovidedbytheplantoterminatelaborrelationsortheproposaltocutback;WhentheGrouprecognizesthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofdismissalbenefits.

23.Estimatedliabilities

WhentheobligationrelatedtocontingenciessuchascustomerreturnarethecurrentobligationsundertakenbytheGroup,andthefulfillmentofthisobligationislikelytoleadtotheoutflowofeconomicbenefits,andtheamountofthisobligationcanbemeasuredreliably,itisrecognizedasestimatedliabilities.Onthebalancesheetdate,consideringtherisk,uncertaintyandtimevalueofmoneyrelatedtocontingencies,theestimatedliabilitiesaremeasuredaccordingtothebestestimateoftheexpenditurerequiredtofulfilltherelevantcurrentobligations.Ifthetimevalueofmoneyissignificant,thebestestimateisdeterminedbythediscountedamountofexpectedfuturecashoutflow.

24.Share-basedpaymentShare-basedpaymentoftheGroupisatransactionthatgrantsequityinstrumentsorassumesliabilitiesdeterminedonthebasisofequityinstrumentsinordertoobtainservicesprovidedbyemployees.Share-basedpaymentoftheGroupisequity-settledshare-basedpayment.

24.1Equity-settledshare-basedpayment

Equity-settledshare-basedpaymentgrantedtoemployees

Equity-settledshare-basedpaymentinexchangeforservicesprovidedbyemployeesismeasuredbythefairvalueoftheequityinstrumentsgrantedtoemployeesonthegrantdateintheGroup.Duringthewaitingperiod,theamountofthefairvalueisbasedonthebestestimateofthenumberofexercisableequityinstruments,calculatedbythestraight-linemethodandincludedintherelevantcostsorexpenses,andthecapitalreserveisincreasedaccordingly.

Oneachbalancesheetdateduringthewaitingperiod,theGroupmakesthebestestimatebasedonthelatestsubsequentinformationsuchaschangesinthenumberofemployeeswithvestingrights,andcorrectsthenumberofequityinstrumentswithestimatedvestingrights.Theimpactoftheaboveestimateisincludedinthe

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relevantcostsorexpensesofthecurrentperiod,andthecapitalreserveisadjustedaccordingly.

24.2Accountingtreatmentrelatedtoimplementation,modificationandterminationofshare-basedpaymentplan

WhentheGroupmodifiestheshare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseinservicesobtainedwillberecognizedaccordingly;Ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentswillberecognizedasanincreaseinserviceacquisitionaccordingly.Theincreaseinthefairvalueofequityinstrumentsreferstothedifferencebetweenthefairvalueofequityinstrumentsbeforeandaftermodificationonthemodificationdate.Ifthetotalfairvalueofshare-basedpaymentisreducedorthetermsandconditionsoftheshare-basedpaymentplanaremodifiedinotherwaysthatareunfavorabletoemployees,theaccountingtreatmentfortheservicesobtainedwillcontinue,asifthechangehadneveroccurred,unlesstheGroupcancelspartoralloftheequityinstrumentsgranted.

Duringthewaitingperiod,ifthegrantedequityinstrumentsarecancelled,theGroupwillacceleratethecancellationofthegrantedequityinstruments,andimmediatelyincludetheamounttoberecognizedintheremainingwaitingperiodinthecurrentprofitsandlosses,andatthesametimerecognizethecapitalreserve.Ifemployeesorotherpartiescanchoosetomeettheconditionsofunfeasiblerightsbutfailtomeetthemwithinthewaitingperiod,theGroupwillcancelthemastheinstrumentforgrantingequity.

25.Revenue

TheCompany'srevenuemainlycomesfromthefollowingbusinesstypes:

(1)Polarizersalesbusiness;

(2)Textilesalesbusiness;

(3)Propertyleasingandmanagementbusiness;

(4)Otherbusinesses.

Whenthecompanyfulfillsitscontractualobligations,thatis,whenthecustomerobtainscontroloftherelevantgoodsorservices,revenueisrecognizedbasedonthetransactionpriceallocatedtotheperformanceobligation.Theperformanceobligationreferstothecommitmentofthecompanytotransfergoodsorservicesthatcanbeclearlydistinguishedtocustomersinthecontract."Transactionprice"referstotheamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceiveforthetransferofgoodsorservicestocustomers,butdoesnotincludeamountsreceivedonbehalfofthirdpartiesandamountsthattheCompanyexpectstoreturntocustomers.

Thecompanyevaluatesthecontractonthecontractstartdate,identifieseachindividualperformanceobligationincludedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoftimeoratacertainpointintime.Ifoneofthefollowingconditionsismet,itisaperformanceobligationperformedwithinacertainperiodoftime,andthecompanyrecognizesrevenueoveraperiodoftimebasedontheperformanceprogress:(1)Thecustomerobtainsandconsumestheeconomicbenefitsbroughtaboutwhilethecompanyperformsthecontract;(2)Thecustomercancontrolthegoodsunderconstructionduringtheperformanceofthecompany'scontract;(3)Thegoodsproducedduringtheperformanceofthecontractbythecompanyhaveirreplaceableuses,andthecompanyhastherighttoreceivepaymentsforthepartoftheperformancethathasbeencompletedsofaraccumulatedthroughoutthecontractperiod.Otherwise,thecompanyrecognizesrevenueatthetimewhenthecustomerobtainscontroloftherelevantgoodsorservices.

Ifacontractcontainstwoormoreperformanceobligations,thecompanywillallocatethetransactionprice

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toeachindividualperformanceobligationbasedontherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractcommencementdate.However,ifthereisconclusiveevidencethatthecontractdiscountorvariableconsiderationisonlyrelatedtooneormore(butnotall)performanceobligationsunderthecontract,thecompanywillallocatethecontractdiscountorvariableconsiderationtotherelevantoneormoreperformanceobligations."Individualsellingprice"referstothepriceatwhichthecompanyseparatelysellsgoodsorservicestocustomers.Iftheindividualsellingpricecannotbedirectlyobserved,thecompanycomprehensivelyconsidersallrelevantinformationthatcanbereasonablyobtained,andestimatestheindividualsellingpriceusingobservableinputvaluestothemaximumextent.Forsaleswithsalesreturnclauses,whenthecustomerobtainscontroloftherelevantgoods,thecompanyrecognizesrevenuebasedontheexpectedamountofconsiderationtobechargedfortransferringthegoodstothecustomer(i.e.,excludingtheexpectedamounttoberefundedduetosalesreturn),andrecognizesliabilitiesbasedontheexpectedamounttoberefundedduetosalesreturn;Atthesametime,basedontheexpectedbookvalueofthereturnedgoodsatthetimeoftransfer,thebalanceafterdeductingtheexpectedcostsincurredinrecoveringthegoods(includingtheimpairmentofthevalueofthereturnedgoods)isrecognizedasanasset.Basedonthebookvalueofthetransferredgoodsatthetimeoftransfer,thenetcarryingcostoftheaboveassetcostsisdeducted.

Forsaleswithqualityassuranceclauses,ifthequalityassuranceprovidesaseparateserviceinadditiontoassuringthecustomerthatthegoodsorservicessoldmeetestablishedstandards,thequalityassuranceconstitutesasingleperformanceobligation.Otherwise,theCompanywillconductaccountingtreatmentforqualityassuranceresponsibilitiesinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.TheCompanydetermineswhetheritistheprimaryresponsiblepersonoragentwhenengagingintransactionsbasedonwhetherithascontroloverthegoodsorservicesbeforetransferringthemtocustomers.Ifthecompanyisabletocontrolthegoodsorservicesbeforetransferringthemtocustomers,thecompanyisthemainresponsiblepersonandrecognizesrevenuebasedonthetotalamountofconsiderationreceivedorreceivable;Otherwise,thecompanyactsasanagentandrecognizesrevenuebasedontheexpectedamountofcommissionsorhandlingfeesthatitisentitledtoreceive.Thisamountisdeterminedbasedonthenetamountofthetotalamountofconsiderationreceivedorreceivableminustheamountpayabletootherrelatedparties.

WheretheCompanyadvancesmoneyfromcustomersforthesaleofgoodsorservices,themoneyisfirstrecognizedasaliability,andthenconvertedintoincomewhentherelevantperformanceobligationsarefulfilled.WhentheCompanydoesnotneedtoreturntheadvancepaymentandthecustomermaywaiveallorpartoftheircontractualrights,iftheCompanyexpectstobeentitledtoreceivetheamountrelatedtothecontractualrightswaivedbythecustomer,theaboveamountshallberecognizedasincomeonaproratabasisinaccordancewiththemodeinwhichthecustomerexercisescontractualrights;Otherwise,theCompanywillonlyconverttherelevantbalanceoftheaboveliabilitiesintorevenuewhenthelikelihoodofthecustomerrequestingfulfillmentoftheremainingperformanceobligationsisextremelylow.

FortheaccountingpoliciesforrecognizingtheCompany'spropertyleaseincome,seeNoteV,28.2.2.1,"TheCompanyrecordsoperatingleasebusinessasalessor.".

26.Governmentsubsidies

Governmentsubsidiesrefertothemonetaryassetsandnon-monetaryassetsobtainedbytheGroupfromthegovernmentfreeofcharge.Governmentsubsidiesarerecognizedwhentheycanmeettheconditionsattachedtogovernmentsubsidiesandcanbereceived.

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Ifgovernmentsubsidiesaremonetaryassets,theyshallbemeasuredaccordingtotheamountreceivedorreceivable.

26.1Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoassets

Aslong-termassetscanbeformedintheproductionlinesubsidiesandequipmentsubsidiesoftheGroup'sgovernmentsubsidies,thesegovernmentsubsidiesaregovernmentsubsidiesrelatedtoassets.

Governmentsubsidiesrelatedtoassetsarerecognizedasdeferredincome,andareincludedinthecurrentprofitsandlossesininstallmentsaccordingtothestraight-linemethodwithintheservicelifeoftherelatedassets.

26.2Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoincome

AstheGroup'sgovernmentsubsidies,suchasindustrydevelopmentsupportfunds,enterprisedevelopmentsupportfundsandtaxsubsidies,cannotformlong-termassets,thesegovernmentsubsidiesaregovernmentsubsidiesrelatedtoincome.

Governmentsubsidiesrelatedtoincome,ifusedtocompensaterelatedcostsandlossesinfutureperiods,willberecognizedasdeferredincome,andareincludedinthecurrentprofitsandlossesduringtheperiodwhenrelatedcostsorexpensesarerecognized;ifusedtocompensatetherelatedcostsandlossesthathaveoccurred,willbedirectlyincludedinthecurrentprofitsandlosses.

GovernmentsubsidiesrelatedtothedailyactivitiesoftheGroupareincludedinotherincomeaccordingtothenatureofeconomicbusiness.GovernmentsubsidiesunrelatedtothedailyactivitiesoftheGroupareincludedinnon-operatingincome.

Whentheconfirmedgovernmentsubsidyneedstobereturned,ifthereisarelevantdeferredrevenuebalance,therelevantdeferredincomebookbalancewillbeoffset,andtheexcesswillbeincludedinthecurrentprofitsandlosses;Ifthereisnorelevantdeferredincome,itwillbedirectlyincludedinthecurrentprofitsandlosses.

27.Deferredincometaxassets/Deferredincometaxliabilities

Incometaxexpensesincludecurrentincometaxanddeferredincometax.

27.1Currentincometax

Onthebalancesheetdate,thecurrentincometaxliabilities(orassets)formedinthecurrentandpreviousperiodsshallbemeasuredbytheexpectedincometaxpayable(orrefunded)calculatedinaccordancewiththeprovisionsofthetaxlaw.

27.2Deferredincometaxassetsanddeferredincometaxliabilities

Forthedifferencebetweenthebookvaluesofsomeassetsandliabilitiesandtheirtaxbasis,andthetemporarydifferencebetweenthebookvaluesofitemsthatarenotrecognizedasassetsandliabilitiesbutcanbedeterminedintaxbasisaccordingtotheprovisionsofthetaxlawandtaxbasis,thebalancesheetliabilitymethodisadoptedtorecognizedeferredincometaxassetsanddeferredincometaxliabilities.

Ingeneral,alltemporarydifferencesarerecognizedasrelateddeferredincometax.However,fordeductibletemporarydifferences,theGrouprecognizesrelateddeferredincometaxassetstotheextentthatitislikelytoobtaintaxableincometooffsetthedeductibletemporarydifferences.Inaddition,forthetemporarydifferencesrelatedtotheinitialrecognitionofgoodwillandtheinitialrecognitionofassetsorliabilitiesarisingfromtransactionsthatareneitherbusinessmergernoraffectaccountingprofitsandtaxableincome(or

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deductiblelosses),therelevantdeferredincometaxassetsorliabilitiesarenotrecognized.Fordeductiblelossesandtaxdeductionsthatcanbecarriedforwardtofutureyears,thecorrespondingdeferredincometaxassetsarerecognizedtotheextentthatitislikelytoobtainfuturetaxableincomefordeductingdeductiblelossesandtaxdeductions.TheGrouprecognizesdeferredincometaxliabilitiesarisingfromtaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatedenterprisesandjointventures,unlesstheGroupcancontrolthetimewhenthetemporarydifferencesarereversed,andthetemporarydifferencesareunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferencesrelatedtotheinvestmentsofsubsidiaries,associatedenterprisesandjointventures,theGrouprecognizesthedeferredincometaxassetsonlywhenthetemporarydifferencesarelikelytobereversedintheforeseeablefutureandthetaxableincomeusedtooffsetthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.

Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredaccordingtotheapplicabletaxrateduringtheexpectedrecoveryofrelatedassetsorsettlementofrelatedliabilities.

Exceptthatthecurrentincometaxanddeferredincometaxrelatedtotransactionsandeventsdirectlyincludedinothercomprehensiveincomeorshareholders'equityareincludedinothercomprehensiveincomeorshareholders'equity,andthedeferredincometaxarisingfrombusinessmergeradjuststhebookvalueofgoodwill,theremainingcurrentincometaxanddeferredincometaxexpensesorgainsareincludedinthecurrentprofitsandlosses.

Onthebalancesheetdate,thebookvalueofdeferredincometaxassetsshallberechecked.Ifitisprobablethatsufficienttaxableincomewillnotbeobtainedinthefuturetooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetsshallbewrittendown.Whensufficienttaxableincomeislikelytobeobtained,theamountwrittendownwillbereversed.

27.3Offsetofincometax

WhentheGrouphasthelegalrighttosettleonanetbasisandintendstosettleonanetbasisoracquireassetsandpayoffliabilitiesatthesametime,theGroup'scurrentincometaxassetsandcurrentincometaxliabilitiesarepresentedonanoffsetnetbasis.

Whenthetaxpayerhasthelegalrighttosettlethecurrentincometaxassetsandliabilitiesonanetbasis,andthedeferredincometaxassetsandliabilitiesarerelatedtotheincometaxleviedbythesametaxcollectiondepartmentonthesametaxpayerortodifferenttaxpayers,butinthefuture,thetaxpayersinvolvedintendtosettlethecurrentincometaxassetsandliabilitiesonanetbasis,oracquireassetsandpayoffliabilitiesatthesametime,theGroup'sdeferredincometaxassetsandliabilitiesarepresentedonanoffsetnetbasis.

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28.Lease"Lease"referstoacontractwherebythelessortransferstherighttouseanassettothelesseeforacertainperiodoftimetoobtainconsideration.Onthecontractstartdate,thecompanyevaluateswhetherthecontractisaleaseorincludesalease.Unlessthetermsandconditionsofthecontractchange,thecompanywillnotreassesswhetherthecontractisaleaseorincludesalease.

28.1TheCompanyaslessee

28.1.1Spin-OffofLeases"Ifacontractcontainsoneormoreleaseandnonleasepartssimultaneously,thecompanywillsplittheseparateleaseandnonleasepartsandallocatethecontractconsiderationbasedontherelativeproportionofthesumoftheindividualpricesofeachleasepartandtheindividualpricesofthenonleasepart.".

28.1.2RighttoUseAssetsExceptforshort-termleases,theCompanyrecognizestherighttouseassetsforleasesontheleasebeginningdate.Theleasetermstartdatereferstothestartdateonwhichthelessorprovidestheleasedassetforusebythecompany.Therighttouseassetsareinitiallymeasuredatcost.Thiscostincludes:

·Theinitialmeasurementamountoftheleaseliability;·Theamountofleasepaymentspaidonorbeforethestartdateoftheleaseterm,ifthereisaleaseincentive,shallbedeductedfromtherelevantamountoftheleaseincentiveenjoyed;·Initialdirectexpensesincurredbythecompany;·Theestimatedcoststhatthecompanywillincurtodismantleandremoveleasedassets,restorethesitewheretheleasedassetsarelocated,orrestoretheleasedassetstothestateagreedintheleaseterms.TheCompanyreferstotherelevantdepreciationprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.4-FixedAssetstoaccruedepreciationfortherighttouseassets.Ifthecompanycanreasonablydeterminethatitwillacquiretheownershipoftheleasedassetupontheexpirationoftheleaseterm,therighttouseassetshallbedepreciatedwithintheremainingservicelifeoftheleasedasset.Ifitisimpossibletoreasonablydeterminethatownershipoftheleasedassetcanbeobtainedupontheexpirationoftheleaseterm,depreciationshallbeaccruedduringtheshorteroftheleasetermortheremainingusefullifeoftheleasedasset.TheCompanydetermineswhethertherighttouseassetshavebeenimpairedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment,andconductsaccountingtreatmentfortheidentifiedimpairmentlosses.

28.1.3Leaseliabilities

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Exceptforshort-termleases,theCompanyinitiallymeasuresleaseliabilitiesatthebeginningoftheleasetermbasedonthepresentvalueoftheunpaidleasepaymentsonthatdate.Whencalculatingthepresentvalueofleasepayments,thecompanyusestheimplicitinterestrateoftheleaseasthediscountrate.Iftheimplicitinterestrateoftheleasecannotbedetermined,theincrementalborrowingrateisusedasthediscountrate.Leasepaymentsrefertothepaymentsmadebythecompanytothelessorrelatedtotherighttousetheleasedassetduringtheleaseterm,including:

·Fixedpaymentamountandsubstantialfixedpaymentamount.Ifthereisaleaseincentive,therelevantamountoftheleaseincentiveshallbededucted;·Variableleasepaymentsthatdependonanindexorratio;·TheCompanyreasonablydeterminestheexercisepriceofthepurchaseoptiontobeexercised;·Theleasetermreflectstheamounttobepaidforexercisingtheoptiontoterminatetheleaseifthecompanywillexercisetheoptiontoterminatethelease;·Theestimatedamountpayablebasedontheresidualvalueoftheguaranteeprovidedbythecompany.Afterthebeginningdateoftheleaseterm,thecompanycalculatestheinterestexpenseoftheleaseliabilityforeachperiodoftheleasetermatafixedperiodicinterestrate,andincludesitinthecurrentprofitandlossorrelatedassetcosts.Afterthebeginningdateoftheleaseterm,ifthefollowingcircumstancesoccur,thecompanyremeasurestheleaseliabilityandadjuststhecorrespondingrighttouseassets.Ifthebookvalueoftherighttouseassetshasbeenreducedtozero,buttheleaseliabilitystillneedstobefurtherreduced,thecompanywillrecordthedifferenceintothecurrentprofitandloss:

·Iftheleasetermchangesortheevaluationresultofthepurchaseoptionchanges,thecompanyremeasurestheleaseliabilitybasedonthepresentvalueofthechangedleasepaymentsandthereviseddiscountrate;·Ifthereisachangeintheexpectedpayableamountbasedontheguaranteeresidualvalueortheindexorproportionusedtodeterminetheleasepaymentamount,thecompanywillremeasuretheleaseliabilitybasedonthechangedleasepaymentamountandthepresentvaluecalculatedattheoriginaldiscountrate.

28.1.4ShortTermLeasesTheCompanychoosesnottorecognizetherighttouseassetsandleaseliabilitiesforshort-termleasesofsomefactorybuildingsandsomeleasedwarehouses."Shorttermlease"referstoaleasethathasaleasetermofnomorethan12monthsanddoesnotincludeapurchaseoptiononthebeginningdateoftheleaseterm.TheCompanyincludestheleasepaymentsforshort-termleasesinthecurrentprofitandlossorrelatedassetcostsusingthestraight-linemethodduringeachperiodoftheleaseterm.

28.1.5LeaseChangesIfaleaseischangedandthefollowingconditionsaremetsimultaneously,thecompanywilltreattheleasechangeasaseparateleaseforaccountingpurposes:

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·Theleasechangeexpandsthescopeoftheleasebyincreasingtherighttouseoneormoreleasedassets;·Theincreasedconsiderationisequivalenttotheindividualpriceforthemajorityoftheexpansionoftheleasescopeadjustedaccordingtothecontractsituation."Ifaleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,thecompanywillreallocatetheconsiderationofthechangedcontract,redefinetheleaseterm,andremeasuretheleaseliabilitybasedonthepresentvalueofthechangedleasepaymentamountandthereviseddiscountrate.".Iftheleasechangeresultsinareductionintheleasescopeortheleaseterm,theCompanyshallreducethebookvalueoftherighttouseassetaccordingly,andrecordtherelevantgainsorlossesfrompartialorcompleteterminationoftheleaseintothecurrentprofitandloss.Ifotherleasechangesresultintheremeasurementofleaseliabilities,theCompanyshalladjustthebookvalueoftherighttouseassetsaccordingly.

28.1.6PolicyrelatedrentconcessionsTheGroupchoosestoadoptthesimplifiedmethodintherelevanttreatmentregulationsforrentconcessionssuchasrentreductionanddeferredpaymentthataredirectlycausedbypoliciesandareagreedbetweentheGroupandthelessoronexistingleasecontracts,whilemeetingthefollowingconditions:

(1)Theleaseconsiderationaftertheconcessionisreducedorsubstantiallyunchangedcomparedtothatbeforetheconcession;

(2)Aftercomprehensiveconsiderationofqualitativeandquantitativefactors,itisdeterminedthattherearenosignificantchangesinothertermsandconditionsofthelease.TheCompanycontinuestocalculatetheinterestexpenseofleaseliabilitiesatthesamediscountrateasbeforetheconcessionandrecorditintothecurrentprofitandloss.Itcontinuestoaccruedepreciationandothersubsequentmeasurementsontherighttouseassetsusingthesamemethodasbeforetheconcession.Intheeventofrentreductionorexemption,theCompanywilltreatthereducedrentasavariableleasepaymentamount.Whentheoriginalrentpaymentobligationisrelieved,suchasreachingaconcessionagreement,therelevantassetcostsorexpenseswillbeoffsetbythediscountedamountattheundiscountedorpreconcessiondiscountrate,andtheleaseliabilitieswillbeadjustedaccordingly;Iftherentisdeferred,theCompanyshalloffsettheleaseliabilitiesrecognizedinthepreviousperiodwhenactuallypayingtherent.Forshort-termleasesthatadoptsimplifiedtreatment,thecompanycontinuestoincludetheoriginalcontractrentintherelevantassetcostsorexpensesusingthesamemethodasbeforeconcession.Intheeventofrentreductionorexemption,theCompanywilltreatthereducedrentasavariableleasepaymentamounttooffsettherelevantassetcostsorexpensesduringthereductionorexemptionperiod;Iftherentpaymentisdelayed,theCompanywillrecognizetherentpayableaspayableduringtheoriginalpaymentperiod,andoffsetthepreviouslyrecognizedpayablewhentheactualpaymentismade.

28.2TheCompanyaslessor

28.2.1Spin-OffofLeasesIfthecontractincludesboththeleasedandnonleasedparts,thecompanyallocatesthecontractconsiderationinaccordancewiththeprovisionsoftheincomestandardsontransactionpriceallocation,andthebasisofallocationistheseparatepricesoftheleasedandnonleasedparts.

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28.2.2ClassificationofleasesLeasesthatsubstantiallytransferalmostalltherisksandrewardsrelatedtotheownershipoftheleasedassetarefinancialleases.Leasesotherthanfinancingleasesareoperatingleases.

28.2.2.1ThecompanyrecordsoperatingleasebusinessasthelessorDuringeachperiodoftheleaseterm,theCompanyadoptsthestraight-linemethodtorecognizetheleasereceiptsfromoperatingleasesasrentalincome.TheinitialdirectexpensesincurredbytheCompanyinconnectionwithoperatingleasesarecapitalizedwhenincurred,amortizedovertheleasetermonthesamebasisasrentalincomerecognition,andincludedincurrentprofitsandlossesbystages.Thevariableleasereceiptsobtainedbythecompanyrelatedtooperatingleasesthatarenotincludedintheleasereceiptsareincludedinthecurrentprofitandlosswhenactuallyincurred.

28.2.3LeaseChangesIfthereisachangeinanoperatinglease,thecompanywilltreatitasanewleaseforaccountingpurposesfromtheeffectivedateofthechange.Theamountofadvancereceiptsorreceivableleasereceiptsrelatedtotheleasebeforethechangeisconsideredastheamountofreceiptsforthenewlease.

28.2.4PolicyrelatedrentconcessionsTheGroupchoosestoadoptthesimplifiedmethodintherelevanttreatmentregulationsforrentconcessionssuchasrentreduction,deferredpayment,etc.thataredirectlycausedbypoliciesandareagreedbetweenthelesseeandthelessoronexistingleasecontracts,whilemeetingthefollowingconditions:

(1)Theleaseconsiderationaftertheconcessionisreducedorsubstantiallyunchangedcomparedtothatbeforetheconcession;

(2)Aftercomprehensiveconsiderationofqualitativeandquantitativefactors,itisdeterminedthattherearenosignificantchangesinothertermsandconditionsofthelease.ForoperatingleasesundertheCompany'sownpropertyleasecontracts,theCompanycontinuestorecognizetheoriginalcontractrentasleaseincomeusingthesamemethodasbeforetheconcession.Intheeventofrentreductionorexemption,theCompanywilltreatthereducedrentasavariableleasepaymentamountandoffsettheleaseincomeduringthereductionorexemptionperiod;Iftherentcollectionisdelayed,theCompanyrecognizestherentreceivableduringtheoriginalcollectionperiodasreceivables,andoffsetsthepreviouslyrecognizedreceivableswhenactuallyreceived.

29.Changesinimportantaccountingpoliciesandaccountingestimates,andcorrectionofpreviouserrors

29.1SignificantaccountingpolicychangesAccountingStandardsforBusinessEnterprisesInterpretationNo.15OnDecember30,2021,theMinistryofFinanceissued"InterpretationNo.15oftheAccountingStandardsforBusinessEnterprises"(hereinafterreferredtoas"InterpretationNo.15"),whichregulatestheaccountingtreatmentfortheexternalsalesofproductsorby-productsproducedbyenterprisesbeforetheirfixedassets

深圳市纺织(集团)股份有限公司2022年年度报告全文

reachtheirintendedusablestateorduringtheresearchanddevelopmentprocess.InterpretationNo.15stipulatesthatifanenterprisesellsproductsorby-productsproducedbeforethefixedassetsreachtheirintendedusablestatusorduringtheresearchanddevelopmentprocess,itshouldseparatelyaccountfortherevenueandcostsrelatedtothetrialoperationsalesinaccordancewiththerevenuestandards,AccountingStandardsforBusinessEnterprisesNo.1-Inventory,andotherprovisions,andincludetheminthecurrentprofitandloss,Thenetamountoftrialrunsalesrelatedrevenueafteroffsettingcostsshouldnotbeusedtooffsetfixedassetcostsorresearchanddevelopmentexpenses.Atthesametime,enterprisesshouldseparatelydiscloserelevantinformationsuchastheamountofrevenueandcostrelatedtotrialrunsales,specificreportingitems,andimportantaccountingestimatesusedtodeterminethecostsrelatedtotrialrunsalesinthenotes.ThisprovisionshallcomeintoforceasofJanuary1,2022.RetroactiveadjustmentsshallbemadetotrialrunsalesthatoccurbetweenthebeginningoftheearliestperiodinwhichfinancialstatementsarepresentedandJanuary1,2022.TheCompanyadoptstheretrospectiveadjustmentmethodforaccountingtreatmentandrestatesthefinancialstatementsofcomparableyears.

29.2Changesinimportantaccountingestimates

Contentsandreasonsofchangesinaccountingestimates	Approvalprocedure	Timepointofapplication	Remark
InordertoreflecttheGroup'sfinancialpositionandoperatingresultsmoreobjectivelyandfairly,theGroupchangedtheaccountingestimateofthedepreciationperiodofsomefixedassets,changedthedepreciationperiodofelectronicequipmentandotherequipmentfrom8yearsto5years,kepttheresidualvaluerateunchanged,andchangedtheannualdepreciationratefrom12%to19.2%.	Itwasreviewedandapprovedatthe9thmeeting(interimmeeting)oftheEighthBoardofDirectorsonDecember31,2021.	January1,2022	AsofDecember31,2022,thechangeinaccountingestimatescausedtheaccumulateddepreciationoffixedassetstobeaccruedbyRMB1,412,095.44,whichcausedthenetprofitofthisyeartodecreasebyRMB1,412,095.44.

29.3CorrectionofpreviouserrorsShengboOptoelectronics,asubsidiaryofthecompany,foundsignificantpriorperioderrorsinpreviousyearsthisyear.Inaccordancewiththerelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.28-ChangesinAccountingPolicies,AccountingEstimates,andCorrectionofErrors",theCompanyhascorrectedrelevanterrorsandrestatedthe2021consolidatedfinancialstatements.Therelevantcorrectionsareasfollows:

(1)Classificationofcurrentassets(liabilities)andnoncurrentassets(liabilities)In2021,aninvestmentinapartnershipenterprisewillbeincludedinothernoncurrentfinancialassets.Afterselfexaminationandreview,theinvestmentisanassetthatwillmatureandberecoveredwithinoneyear.AccordingtotheAccountingStandardsforBusinessEnterprisesNo.30-PresentationofFinancialStatements,itwillbereclassifiedfromothernoncurrentfinancialassetstotradingfinancialassets.In2021,thepayablerefundsduewithinoneyearwillbeincludedintheestimatedliabilities.Afterselfinspectionandreview,theywillbereclassifiedfromtheestimatedliabilitiestoothercurrentliabilitiesinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.30-PresentationofFinancialStatements.

In2021,aleasedpropertywasincludedinfixedassets.AccordingtotheprovisionsoftheAccounting

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StandardsforBusinessEnterprisesNo.3-InvestmentRealEstate,itwasreclassifiedfromfixedassetstoinvestmentrealestatethroughselfinspectionandreview.

(2)RawmaterialsintransitarenotprovisionallyrecordedAttheendof2021,therawmaterialsintransitwerenotprovisionallyestimatedandrecordedintheaccount.Afterselfinspectionandreview,theinventoryandaccountspayablewereincreasedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.1-Inventory.

(3)ProductcostallocationfordifferentgradesofthesameproductAfterselfinspectionandreview,therearedifferencesinthecostallocationofdifferentgradesofthesameproductbytheGroup.InaccordancewithrelevantregulationssuchastheAccountingStandardsforBusinessEnterprisesNo.1-InventoriesandtheEnterpriseProductCostAccountingSystem(Trial),theGrouprecalculatesthecostofproductsofdifferentgradesofthesameproduct,adjuststhecostofinventorysold,andaccordinglyadjuststheassetimpairmentlossesandoperatingcostsinthe2021consolidatedfinancialstatements.Themaineffectsoftheabovechangeinaccountingpolicyandcorrectionofpriorperioderrorsontheconsolidatedfinancialstatementsfor2021areasfollows:

Unit:RMB

FinancialStatementItemName	Changeinaccountingpolicy/priorperiodAmountbeforecorrectionoferrors	Amountofchangeinaccountingpolicy	Amountofcorrectionofpriorperioderrors	Changeinaccountingpolicy/priorperiodAmountaftercorrectionoferrors
1、BalanceSheetItems
(1)Assets
Financialassetsheldfortrading	586,540,735.16	-	30,650,943.40	617,191,678.56
Othernon-currentfinancialassets	30,650,943.40	-	(30,650,943.40)	-
Inventory	667,461,447.03	-	75,940,410.71	743,401,857.74
Investmentproperties	106,217,779.76	-	19,034,071.67	125,251,851.43
FixedAssets	2,424,741,252.86	(9,048,192.38)	(19,034,071.67)	2,396,658,988.81
TotalAssets	5,496,647,107.83	(9,048,192.38)	75,940,410.71	5,563,539,326.16
(2)Liabilities
AccountsPayable	283,643,842.23	-	75,940,410.71	359,584,252.94
Othercurrentliabilities	27,523,903.58	-	30,741,055.00	58,264,958.58
Projectedliabilities	30,741,055.00	-	(30,741,055.00)	-
Totalliabilities	1,532,817,860.76	-	75,940,410.71	1,608,758,271.47
(3)Shareholders'Equity
Undistributedearnings	130,746,251.74	(5,428,915.43)	-	125,317,336.31
Totalequityattributabletoownersoftheparentcompany	2,816,795,889.89	(5,428,915.43)	-	2,811,366,974.46
Minorityinterests	1,147,033,357.18	(3,619,276.95)	-	1,143,414,080.23
Totalshareholders'equity	3,963,829,247.07	(9,048,192.38)	-	3,954,781,054.69
2、IncomeStatementItems
Operatingincome	2,293,747,892.06	36,313,788.94	-	2,330,061,681.00
OperatingCosts	1,908,519,413.28	45,361,981.32	(46,887,730.85)	1,906,993,663.75
Impairmentgains(losses)onassets	(83,508,720.33)	-	(46,887,730.85)	(130,396,451.18)
NetProfit	75,114,666.20	(9,048,192.38)	-	66,066,473.82
Netprofitattributabletoshareholdersoftheparentcompany	61,162,384.25	(5,428,915.43)	-	55,733,468.82
Minorityinterestsinprofitorloss	13,952,281.95	(3,619,276.95)	-	10,333,005.00

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VI.Taxes

1.Maintaxcategoriesandtaxrates

Taxcategory	Taxbasis	Taxrate
VAT	Thebalanceafterdeductingthedeductibleinputtaxfromtheoutputtax;Thetaxcalculationmethodof"exemption,offsetandrefund"isappliedtosalesofexportproducts	Theoutputtaxfordomesticsalesiscalculatedaccordingto13%,9%,6%and5%ofthesalesamountcalculatedaccordingtorelevanttaxregulations,andthetaxrebaterateforexportproductsis13%
Urbanmaintenanceandconstructiontax	Payableturnovertax	7%
Businessincometax	Taxableamountofincome	25%,20%,15%,8.25%
Surchargeforeducation	Payableturnovertax	3%
Surchargeforlocaleducation	Payableturnovertax	2%
Propertytax	Residualvalueorrentalincomeafterdeducting30%fromtheoriginalvalueofpropertyatonetime	1.2%or12%

Thedisclosurestatementiftherearetaxpayerswithdifferententerpriseincometaxrates

Nameoftaxpayer	Incometaxrate
TheCompany	0.25
ShenzhenShenfangPropertyManagementCo.,Ltd.	0.25
ShenzhenShengjinlianTechnologyCo.,Ltd.	0.25
ShenzhenBeautyCenturyGarmentCo.,Ltd.	20%(Note1)
ShenzhenLisiIndustrialCo.,Ltd.	20%(Note1)
ShenzhenShenfangSungangPropertyManagementCo.,Ltd.	20%(Note1)
ShenzhenHuaqiangHotel	20%(Note1)
Shengtou（HK）Co.,Ltd.	8.25%(Note2)
ShenzhenSAPOPhotoelectricCo.,Ltd.	15%(Note3)

Note1:See"TaxPreferences"inNotes(VI),2(2)fordetails.

Note2:AccordingtotheTaxOrdinanceofHongKong,HongKongcompaniesappliedthetwo-tiersystemofprofitstaxin2018,andthefirstprofitofHK$2millionwillbecalculatedandpaidat8.25%,andtheprofitsgeneratedthereafterwillbecalculatedat16.5%.Note3:See"TaxPreference"inNotes(VI),2(1)fordetails.

2.Taxpreference

(1)In2019and2022,SAPOPhotoelectric,asubsidiaryoftheCompany,wasjointlyrecognizedasahigh-techenterprisebyShenzhenScienceandTechnologyInnovationCommittee,ShenzhenFinanceBureauandShenzhenTaxService,StateTaxationAdministration,respectively,withacertificationperiodof3years,andthecertificatenumbersofGR201944205666andGR202244204504respectively.Itshallapplythepreferentialtaxpoliciesforhigh-techenterpriseswithinthreeyearsafteritisrecognizedasahigh-techenterprise,andpayenterpriseincometaxattherateof15%afterbeingfiledbythecompetenttaxbureau.

(2)AccordingtotheLawofthePeople'sRepublicofChinaonEnterpriseIncomeTaxissuedonMarch16,2007anditsrevisedversion,thesubsidiariesoftheCompany,ShenzhenMeibainianClothingCo.,Ltd.,ShenzhenHuaqiangHotelClothingCo.,Ltd.,ShenzhenLisiIndustrialDevelopmentCo.,Ltd.andShenzhenShenfangSungangPropertyManagementCo.,Ltd.,arequalifiedsmallandlow-profitenterprises.AccordingtotheNoticeonImplementingInclusiveTaxReliefPoliciesforSmallandMicroEnterprises(CS[2019]

深圳市纺织(集团)股份有限公司2022年年度报告全文

No.13),AnnouncementonImplementingPreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualBusiness(AnnouncementNo.12oftheMinistryofFinanceandtheStateTaxationAdministrationin2021)andAnnouncementonFurtherImplementingPreferentialIncomeTaxPoliciesforSmallandMicroEnterprises(AnnouncementNo.13oftheMinistryofFinanceandtheStateTaxationAdministrationin2022),forthepartofthetaxableincomeofsmallandlow-profitenterprisesthatdoesnotexceedRMB1millionthisyear,itwillbeincludedinthetaxableincomeatareducedrateof12.5%,andtheenterpriseincometaxwillbepaidatarateof20%(2021:atareducedrateof12.5%andatataxrateof20%);ForthepartoftaxableincomeexceedingRMB1millionbutnotexceedingRMB3millionthisyear,itwillbeincludedintaxableincomeatareducedrateof25%,andenterpriseincometaxwillbepaidatarateof20%(2021:atareducedrateof50%,andataxrateof20%).

(3)AccordingtotherelevantprovisionsoftheNoticeofStateTaxationAdministrationoftheGeneralAdministrationofCustomsoftheMinistryofFinanceonSupportingtheDevelopmentofNewDisplayDeviceIndustry(CGS[2021]No.19),SAPOPhotoelectric,asubsidiaryoftheCompany,isamanufacturerofkeyrawmaterialsandcomponentsintheupstreamofthenewdisplaydeviceindustry,suchascolorfilterfilmsandpolarizers,whichareinlinewiththeindependentdevelopmentplanofthedomesticindustry.FromJanuary1,2021toDecember31,2030,itenjoysthepolicyofimportingself-usedproductiverawmaterialsandconsumablesthatcannotbeproducedinChina,andisexemptfromimportduties.VII.Notesofconsolidatedfinancialstatement

1.MonetaryCapital

InRMB

Items	Year-endbalance	Year-beginningbalance
Cashathand	3,980.56	792.64
RMB	3,980.56	792.64
Bankdeposit(Note1)	874,795,302.32	302,472,035.96
RMB	853,053,825.65	279,304,631.88
USD	17,490,003.77	21,657,073.19
Yen	4,200,382.59	851,136.87
HKD	51,090.31	659,194.02
Othermonetarycapital(Note2)：	116,990,685.31	-
RMB	116,929,425.84	-
USD	60,972.46	-
Yen	287.01	-
Total	991,789,968.19	302,472,828.60
Including:Thetotalamountofdepositabroad		6,009,898.07

Note1:BankdepositsincludeinterestoncurrentdepositsofRMB324,448.42.

Note2:OnDecember31,2022,theCompany'sothermonetaryfundsincludedthefrozenaccountofRMB1,270,758.22,andtheprincipalandinterestoftimedepositcertificatesdueformorethanthreemonthsfrom

thedateofpurchaseofRMB115,719,927.09.

2.Transactionalfinancialassets

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Financialassetsmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses	319,605,448.44	617,191,678.56
Including:moneyfundsandstructureddeposits	319,605,448.44	617,191,678.56
PartnershipInvestment	-	30,650,943.40

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Total

319,605,448.44

617,191,678.56

3.Notesreceivable

(1)Notesreceivablelistedbycategory

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Bankacceptance	74,619,100.26	77,296,787.26
Commercialacceptance		72,646,093.02
Total	74,619,100.26	149,942,880.28

(2)OnDecember31,2022,theGrouphadnopledgedbillsreceivable.

(3)OnDecember31,2022,thenotesreceivablethathavebeenendorsedordiscountedbytheGroupandhavenotyetmaturedonthebalancesheetdate.

InRMB

Items	Amounttobederecognizedattheendofthisyear	Amountnotderecognizedattheendofthisyear
Bankacceptance	-	48,387,401.67

(4)Classifieddisclosurebycreditlossprovisionaccrualmethod

InRMB

Category	Balanceattheendofthisyear					Balanceattheendoflastyear
	Bookbalance		Creditlossprovision		Bookvalue	Bookbalance		Creditlossprovision		Bookvalue
	Amount	Proportion(%)	Amount	Accrualproportion(%)		Amount	Proportion(%)	Amount	Accrualproportion(%)
Creditlossprovisionaccruedbyitem	-	-	-	-	-	-	-	-	-	-
Creditlossprovisionaccruedbyportfolio	74,619,100.26	100.00	-	-	74,619,100.26	150,307,936.02	100.00	365,055.74	0.24	149,942,880.28
Including:Bankacceptancebill	74,619,100.26	100.00	-	-	74,619,100.26	77,296,787.26	51.43	-	-	77,296,787.26
Commercialacceptancebill	-	-	-	-	-	73,011,148.76	48.57	365,055.74	0.50	72,646,093.02
Total	74,619,100.26	100.00	-	-	74,619,100.26	150,307,936.02	100.00	365,055.74		149,942,880.28

(5)Creditlossprovision

InRMB

Category	Balanceatthebeginningofthisyear	Amountofchangethisyear				Balanceattheendofthisyear
		Accrual	Recoveryorreversal	Write-offorcancellation	Otherchanges
Commercialacceptance	365,055.74		(365,055.74)	-	-	1,078,834.61

(6)OnDecember31,2022,theGrouphadnobillsreceivableactuallywrittenoff.

4.Accountreceivable

(1)Disclosurebyaging

InRMB

深圳市纺织(集团)股份有限公司2022年年度报告全文

Aging	Balanceattheendofthisyear			Balanceattheendoflastyear
	Accountreceivable	Creditlossprovision	Proportion(%)	Accountreceivable	Creditlossprovision	Proportion(%)
Within1year	670,780,300.16	34,261,574.63	5.11	502,894,801.73	22,896,093.16	4.55
1-2years	614,645.76	549,901.36	89.47	5,702.29	5,702.29	100.00
2-3years	-	-	-	676,153.40	676,153.40	100.00
3年以上	12,883,224.42	12,883,224.42	100.00	12,532,199.89	12,532,199.89	100.00
Total	684,278,170.34	47,694,700.41		516,108,857.31	36,110,148.74

(2)Classifieddisclosurebycreditlossprovisionaccrualmethod

Creditlossprovisionbyitem:ifthereisevidencethatthecreditriskofasinglereceivableisrelativelyhigh,creditlossprovisionshallbeaccruedseparatelyforthereceivable.Creditlossprovisionismadeaccordingtotheportfolioofcreditriskcharacteristics:exceptforreceivableswithcreditimpairmentloss,theGroupusesimpairmentmatrixtoevaluatetheexpectedcreditlossofaccountsreceivableformedbyoperatingincomeonthebasisofportfolio.Accordingtotheriskcharacteristics,theGroupdividescustomersintoPortfolio1andPortfolio2,whichrespectivelyinvolvecustomerswiththesameriskcharacteristics.

OnDecember31,2022,thecreditriskandcreditlossprovisionoftheaccountsreceivableoftheaboveportfoliowereasfollows:

InRMB

	Balanceattheendofthisyear
Category	Bookbalance		Creditlossprovision		Bookvalue
	Amount	Proportion(%)	Amount	Accrualproportion(%)
Creditlossprovisionaccruedbyitem	74,770,706.00	10.93	28,457,163.32	38.06	46,313,542.68
Creditlossprovisionaccruedbyportfolio	609,507,464.34	89.07	19,237,537.09	3.16	590,269,927.25
Including:Portfolio1	591,168,603.26	86.39	18,295,605.12	3.10	572,872,998.14
Portfolio2	18,338,861.08	2.68	941,931.97	5.14	17,396,929.11
Total	684,278,170.34	100.00	47,694,700.41		636,583,469.93

OnDecember31,2022,thecreditriskandcreditlossprovisionoftheaccountsreceivableofPortfolio1wereasfollows:

InRMB

Category	Balanceattheendofthisyear
	Expectedaveragelossrate(%)	Bookbalance	Creditlossprovision	Bookvalue
Duringthecreditperiod	2.48	561,796,994.67	13,939,072.35	547,857,922.32
1-30daysoverdue	5.77	24,107,786.48	1,390,374.05	22,717,412.43
31-60daysoverdue	44.73	4,134,014.59	1,849,280.58	2,284,734.01
61-90daysoverdue	96.66	387,551.54	374,622.16	12,929.38
Overdueformorethan90days	100.00	742,255.98	742,255.98	-
Total		591,168,603.26	18,295,605.12	572,872,998.14

OnDecember31,2022,thecreditriskandcreditlossprovisionoftheaccountsreceivableofPortfolio2wereasfollows:

InRMB

Aging	Balanceattheendofthisyear
	Expectedaveragelossrate(%)	Bookbalance	Creditlossprovision	Bookvalue
Within1year	5.11	18,266,674.08	934,207.96	17,332,466.12
1-2years	10.70	72,187.00	7,724.01	64,462.99
Total		18,338,861.08	941,931.97	17,396,929.11

深圳市纺织(集团)股份有限公司2022年年度报告全文

(3)Creditlossprovision

InRMB

Items	Expectedcreditlossforthewholeduration
Year-beginningbalance	36,110,148.74
Accrualthisyear	11,584,551.67
Reversalthisyear	-
Write-offthisyear	-
Otherchanges	-
Year-endbalance	47,694,700.41

Thereisnoimportantsituationinwhichtheamountofcreditlossprovisionisrecoveredorreversedthisyear.

(4)Noactualwrite-offofaccountsreceivablethisyear

(5)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty

Name	Balanceinyear-end	Proportion(%)	Baddebtprovision
Client1	128,256,413.42	18.74	3,182,244.56
Client2	77,700,212.51	11.36	2,058,523.74
Client3	62,781,126.25	9.17	1,557,699.08
Client4	47,899,911.28	7.00	1,188,472.59
Client5	47,461,093.38	6.93	1,242,593.02
Total	364,098,756.84	53.21	9,229,532.99

(6)OnDecember31,2022,theGrouphadnoaccountsreceivablethatwerederecognizedduetothetransferoffinancialassets.

5.Receivablefinancing

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Commercialacceptance	54,413,796.91	21,474,101.07

OnDecember31,2022,theendorsedordiscountedunexpiredbankacceptancebillsthattheGroupderecognizedamountedto

RMB54,995,349.12.Forthebankacceptancebillsoflargestate-ownedcommercialbankswithhighcreditratingandlistednationaljoint-stockcommercialbanks,theGroupbelievesthataftertheendorsementordiscountofsuchbankacceptancebills,therelatedmainrisksandrewardshavebeentransferredtothecounterparty,andsuchendorsedordiscountedunexpiredbankacceptancebillsshouldbederecognized.

TheGroupbelievesthattheacceptancebankcreditratingofthebankacceptancebillsheldbyitishigh,withnosignificantcreditrisk,thereforenocreditlossprovisionhasbeenmade.

6.Prepayments

(1)Listbyaginganalysis:

InRMB

Aging	Balanceattheendofthisyear		Balanceattheendoflastyear
	Amount	Proportion%	Amount	Proportion%
Within1year	16,690,766.68	90.75	15,157,623.27	98.38
1-2years	1,700,677.99	9.25	248,996.26	1.62
Total	18,391,444.67	100.00	15,406,619.53	100.00

OnDecember31,2022,theGrouphadnoprepaymentswithanageofmorethanoneyearandasignificantamount.

深圳市纺织(集团)股份有限公司2022年年度报告全文

(2)Prepaymentsofthetopfiveendingbalancesbyprepaymentobject

Thetotalamountofthetopfiveyear-endbalancescollectedbyprepaymentobjectsisRMB13,880,315.32,accountingfor75.47%ofthetotalyear-endbalancesofprepayments.

7.Otherreceivables

7.1Summaryofotherreceivables

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Otherreceivable	10,585,975.38	140,185,750.40

7.2Otherreceivables

(1)Disclosurebyage

InRMB

Aging	Balanceattheendofthisyear
	Otherreceivables	Creditlossprovision	Accrualproportion(%)
Within1year	9,677,505.85	494,588.28	5.11
1-2years	822,689.31	88,027.76	10.70
2-3years	329,051.11	110,862.33	33.69
Over3years	18,154,298.53	17,704,091.05	97.52
Total	28,983,544.80	18,397,569.42

(2)Disclosurebypaymentnature

InRMB

Paymentnature	Bookbalanceattheendofthisyear	Bookbalanceattheendoflastyear
Currentpayment	16,330,801.03	16,402,902.33
Fundssubjecttofreeze	6,559,327.26
Depositandsecuritydeposit	2,801,300.29	144,954,822.31
Exportrebate	1,023,715.60	1,698,919.82
Reservefundsandemployeeloans	580,028.97	293,128.97
Others	1,688,371.65	1,834,489.23
Total	28,983,544.80	165,184,262.66

(3)Accrualofcreditlossprovision

InRMB

Stage	Year-endamount
	Expectedaveragelossrate(%)	Bookbalance	Lossprovision	Bookvalue
Otherreceivablesforwhichcreditlossprovisionismadeaccordingtothecombinationofcreditriskcharacteristics	63.48	28,983,544.80	18,397,569.42	10,585,975.38

（4）Changesincreditlossprovisionsforotherreceivable：

InRMB

BadDebtReserves	Stage1	Stage2	Stage3	Total
	Expectedcreditlossesoverthenext12months	Expectedcreditlossoverlife(nocreditimpairment)	Expectedcreditlossesfortheentireduration(creditimpairmentoccurred)
BalanceasatJanuary1,2022	7,795,257.07	-	17,203,255.19	24,998,512.26
BalanceasatJanuary1,2022incurrent

深圳市纺织(集团)股份有限公司2022年年度报告全文

——TransfertostageII	(40,256.64)	40,256.64	-	-
——TransfertostageIII	-	-	-	-
--ReversaltotheIIstage	-	-	-	-
--ReversaltotheIstage	-	-	-	-
ProvisioninCurrentYear	-	158,633.45	500,835.86	659,469.31
ReversalinCurrentYear	(7,260,412.15)	-	-	(7,260,412.15)
ConversioninCurrentYear	-	-	-	-
WriteoffinCurrentYear	-	-	-	-
Otherchange	-	-	-	-
Balanceasat31Dec.2022	7,795,257.07	-	17,203,255.19	24,998,512.26

(5)Noactualwrite-offofotheraccountsreceivablethisyear

(6)Topfivecompanieswithyear-endbalanceofotherreceivablescollectedbythedefaultingparty

InRMB

Otherreceivables	Paymentnature	Year-endbalanceofotherpayables	Aging	Proportionoftotalyear-endbalanceofotherreceivables(%)	Year-endbalanceofcreditlossprovision
TotalotherreceivablesofthetopfivebalancesonDecember31,2022	Receivableexternaltransactions,Fundssubjecttofreeze，exporttaxrebates,etc	21,866,667.23	Within1year,morethan3years	75.45	14,616,189.97

8.Inventories

（1）CategoryofInventory

InRMB

Items	Closingbookbalance			Openingbookbalance
	Bookbalance	Provisionforinventoryimpairment	Bookvalue	Bookbalance	Provisionforinventoryimpairment	Bookvalue
Rawmaterials	291,062,812.80	48,809,720.50	242,253,092.30	425,919,281.58	26,335,509.94	399,583,771.64
Processingproducts	258,881,779.59	41,882,202.00	216,999,577.59	281,735,104.85	34,298,745.28	247,436,359.57
Semi-finished	183,723,885.96	92,381,073.63	91,342,812.33	172,832,703.08	83,668,700.76	89,164,002.32
Commissionedmaterials	9,016,668.25	1,164,501.70	7,852,166.55	7,838,404.74	620,680.53	7,217,724.21
Total	742,685,146.60	184,237,497.83	558,447,648.77	888,325,494.25	144,923,636.51	743,401,857.74

Note:ThebookbalanceofpolarizerinventoryisRMB721,282,838.15.

（2）Inventoryfallingpricereserves

InRMB

Items	Openingbalance	Increasedincurrentperiod		Decreasedincurrentperiod		Closingbalance
		Accrual	Reversedor	Write-off	Other

深圳市纺织(集团)股份有限公司2022年年度报告全文

			collectedamount
Rawmaterials	26,335,509.94	33,104,645.59	-	10,630,435.03	-	48,809,720.50
Processingproducts	34,298,745.28	59,472,861.14	-	51,889,404.42	-	41,882,202.00
Semi-finished	83,668,700.76	90,584,694.67	-	81,872,321.80	-	92,381,073.63
Commissionedmaterials	620,680.53	543,821.17	-	-	-	1,164,501.70
Total	144,923,636.51	183,706,022.57	-	144,392,161.25	-	184,237,497.83

(3)OnDecember31,2022,therewasnoamountintheinventorybalanceforguaranteeandnoamountforcapitalizationofborrowingcosts.

9.Othercurrentassets

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
VATtobedeductedandinputtaxtobecertified	26,077,404.45	860,153.70
Advancepaymentofincometax	11,654.12	57,448.91
Receivablereturncost	43,446,472.67	28,585,749.81
Total	69,535,531.24	29,503,352.42

10.Long-termequityinvestment

InRMB

Investees	Openingbalance	Increase/decrease								Closingbalance	Closingbalanceofimpairmentprovision
		Additionalinvestment	Decreaseininvestment	ProfitsandlossesoninvestmentsRecognizedundertheequitymethod	Othercomprehensiveincome	Changesinotherequity	Cashbonusorprofitsannouncedtoissue	Withdrawalofimpairmentprovision	Other
I.Jointventures
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.	128,214,225.54	1.00	-	1,292,045.22	-	-	-	-	-	129,506,271.76	-
Subtotal	128,214,225.54	1.00	-	1,292,045.22	-	-	-	-	-	129,506,271.76	-
2.AffiliatedCompany
ShenzhenChanglianfaPrinting&dyeingCompany	2,972,202.97	-	-	133,593.58	-	-	-	-	-	3,105,796.55	-
HongkongYehuiInternationalCo.,Ltd.	1,835,897.26	-	-	(117,999.65)	151,869.82	-	-	-	-	1,869,767.43	-
Subtotal	4,808,100.23	-	-	15,593.93	151,869.82	-	-	-	-	4,975,563.98	-
Total	133,022,325.77	1.00	-	1,307,639.15	151,869.82	-	-	-	-	134,481,835.74	-

深圳市纺织(集团)股份有限公司2022年年度报告全文

11.Otherequityinstrumentsinvestment

(1)Investmentinotherequityinstruments

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Financialassetsdesignatedasfairvalueandwhosechangesareincludedinothercomprehensiveincome	167,678,283.27	186,033,829.72

(2)Investmentinnon-transactionalequityinstruments

InRMB

Items	Dividendincomerecognizedthisyear	Cumulativegain/loss	Amounttransferredfromothercomprehensiveincometoretainedincomethisyear	Reasondesignatedasbeingmeasuredatfairvalueandchangebeingincludedinothercomprehensiveincome	Reasonsfortransferringfromothercomprehensiveincometoretainedincomethisyear
UnionDevelopmentCo.,Ltd.	208,000.00	123,153,939.39	-	本公司计划长期持有	不适用
ShenzhenDailishiUnderwearCo.,Ltd.	1,037,735.85	21,077,143.74	-	本公司计划长期持有	不适用
ShenzhenSouthTextileCo.,Ltd.	1,018,391.82	14,559,440.88	-	本公司计划长期持有	不适用
ShenzhenXinfangKnittingCo.,Ltd.	354,000.00	1,703,903.00	-	本公司计划长期持有	不适用
JintianIndustry（Group）Co.,Ltd.	-	(14,831,681.50)	-	本公司计划长期持有	不适用
Total	2,618,127.67	145,662,745.51	-

12.Investmentrealestate

(1)Investmentrealestateadoptedthecostmeasurementmode

√Applicable□Notapplicable

InRMB

Items	House,Building
I.Originalprice
1.Balanceatperiod-beginning	297,505,157.93
2.Increaseinthecurrentperiod	30,623,657.48
(1)Transferredfromconstructioninprogress	1,689,997.88
(2)TransferredfromFixedassets	28,933,659.60
3.Decreasedamountoftheperiod	-
（1）Dispose	-
（2）Otherout	-
4.Balanceatperiod-end	328,128,815.41
II.Accumulatedamortization
1.Openingbalance	172,253,306.50
2.Increasedamountoftheperiod	29,559,674.15
(1)Withdrawal	8,861,091.64
(2)TransferredfromFixedassets	20,698,582.51
3.Decreasedamountoftheperiod	-
（1）Dispose	-
（2）Otherout	-
4.Balanceatperiod-end	201,812,980.65
III.Impairmentprovision
1.Balanceatperiod-beginning	-

深圳市纺织(集团)股份有限公司2022年年度报告全文

Items	House,Building
2.Increasedamountoftheperiod	-
(1)Withdrawal	-
3.Decreasedamountoftheperiod	-
（1）Dispose	-
4.Balanceatperiod-end	-
IV.Bookvalue
1.Bookvalueatperiod-end	126,315,834.76
2.Bookvalueatperiod-beginning	125,251,851.43

（2）Investmentrealestatewithoutcertificateofownership

InRMB

Items	Bookbalance	Reason
HousesandBuilding	8,400,885.28	Unabletoapplyforwarrantsduetohistoricalreasons

13.Fixedassets

InRMB

Items	Year-endbalance	Year-beginningbalance
Fixedassets	2,240,221,656.36	2,396,658,988.81

(1)Listoffixedassets

InRMB

Items	Houses&buildings	Machineryequipment	Transportations	Otherequipment	Total
I.Originalprice
1.Openingbalance	770,999,905.53	2,541,646,415.51	15,278,991.67	50,152,759.25	3,378,078,071.96
2.Increasedamountoftheperiod	643,725.43	115,612,867.39	941,176.78	1,264,484.92	118,462,254.52
(1)Purchase	643,725.43	38,964,186.86	384,008.63	1,049,993.67	41,041,914.59
(2)Transferredfromconstructioninprogress	-	76,648,680.53	557,168.15	214,491.25	77,420,339.93
3.Decreasedamountoftheperiod	28,933,659.60	1,388,155.99	345,141.19	933,732.47	31,600,689.25
（1）Disposal	-	1,388,155.99	345,141.19	933,732.47	2,667,029.65
(2)TransferredfromRealestateinvestment	28,933,659.60	-	-	-	28,933,659.60
4.Balanceatperiod-end	742,709,971.36	2,655,871,126.91	15,875,027.26	50,483,511.70	3,464,939,637.23
II.Accumulateddepreciation
1.Openingbalance	168,343,175.55	776,497,359.55	4,361,783.39	25,822,442.07	975,024,760.56
2.Increasedamountoftheperiod	25,546,276.33	211,016,207.09	1,840,818.70	9,297,706.74	247,701,008.86
(1)Withdrawal	25,546,276.33	211,016,207.09	1,840,818.70	9,297,706.74	247,701,008.86
3.Decreasedamountoftheperiod	20,698,582.51	1,310,146.73	331,335.54	896,720.41	23,236,785.19
（1）Disposal	-	1,310,146.73	331,335.54	896,720.41	2,538,202.68
(2)TransferredfromRealestateinvestment	20,698,582.51	-	-	-	20,698,582.51
4.Closingbalance	173,190,869.37	986,203,419.91	5,871,266.55	34,223,428.40	1,199,488,984.23
III.Impairmentprovision
1.Openingbalance	-	6,361,553.37	-	32,769.22	6,394,322.59
2.Increaseinthereportingperiod	-	18,759,054.84	-	108,388.43	18,867,443.27

深圳市纺织(集团)股份有限公司2022年年度报告全文

（1）Withdrawal	-	18,759,054.84	-	108,388.43	18,867,443.27
3.Decreaseinthereportingperiod	-	-	-	32,769.22	32,769.22
（1）Disposal	-	-	-	32,769.22	32,769.22
4.Closingbalance	-	25,120,608.21	-	108,388.43	25,228,996.64
IV.Bookvalue
1.Bookvalueoftheperiod-end	569,519,101.99	1,644,547,098.79	10,003,760.71	16,151,694.87	2,240,221,656.36
2.Bookvalueoftheperiod-begin	602,656,729.98	1,758,787,502.59	10,917,208.28	24,297,547.96	2,396,658,988.81

(2)Fixedassetswithoutcertificateoftitlecompleted

InRMB

Items	BookValue	Reason
HousesandBuilding	11,647,880.88	Unabletoapplyforwarrantsduetohistoricalreasons

(3)MortgagedandsecuredfixedassetsAsofDecember31,2022,theGroup'sfixedassetsmortgagedbybankloansaredetailedinNotes(VII),56"Assetswithrestrictedownershiporuseright":

14.Constructioninprogress

InRMB

Items	Year-endbalanceinthisyear	Year-beginningbalanceinlastyear
Constructioninprogress	38,061,619.60	71,482,031.08

(1)Listofconstructioninprogress

InRMB

Items	Year-endbalance			Year-beginningbalance
	Bookbalance	Provisionfordevaluation	Bookvalue	Bookbalance	Provisionfordevaluation	Bookvalue
Installationofmachinesandequipment	38,061,619.60	-	38,061,619.60	71,482,031.08	--	71,482,031.08

15.Righttouseassets

InRMB

Items	HousesandBuilding
I.Originalprice
1.Openingbalance	13,762,176.74
2.Increasedamountoftheperiod	15,151,871.09
(1)Newlyincreased	15,151,871.09
3.Decreasedamountoftheperiod	-
4.Balanceatperiod-end	28,914,047.83
II.Accumulateddepreciation
1.Openingbalance	4,540,987.37
2.Increasedamountoftheperiod	9,007,666.58

深圳市纺织(集团)股份有限公司2022年年度报告全文

(1)Withdrawal	9,007,666.58
3.Decreaseinthereportingperiod	-
4.Closingbalance	13,548,653.95
III.Impairmentprovision
1.Openingbalance	-
2.Increaseinthereportingperiod	-
（1）Withdrawal	-
3.Decreaseinthereportingperiod	-
4.Closingbalance	-
IV.Bookvalue
1.Bookvalueoftheperiod-end	15,365,393.88
2.Bookvalueoftheperiod-begin	9,221,189.37

TheGrouphasleasedanumberofassets,includinghousesandbuildings,withaleasetermof1to10years.Thesimplifiedshort-termleasefeeincludedinthecurrentprofitsandlossesthisyearisRMB653,461.86.ThetotalcashoutflowrelatedtoleasingthisyearisRMB9,798,034.29.

16.Intangibleassets

(1)Information

InRMB

Items	Landuseright	Software	Patentright	Total
I.Originalprice
1.Balanceatperiod-beginning	48,258,239.00	21,696,241.02	11,825,200.00	81,779,680.02
2.Increaseinthecurrentperiod	-	640,305.31	-	640,305.31
(1)Purchase	-	640,305.31	-	640,305.31
3.Decreasedamountoftheperiod	-	-	-	-
4.Balanceatperiod-end	48,258,239.00	22,336,546.33	11,825,200.00	82,419,985.33
II.Accumulatedamortization
1.Balanceatperiod-beginning	14,382,583.03	6,936,736.99	11,825,200.00	33,144,520.02
2.Increaseinthecurrentperiod	891,565.32	4,191,328.04	-	5,082,893.36
(1)Withdrawal	891,565.32	4,191,328.04	-	5,082,893.36
3.Decreasedamountoftheperiod	-	-	-	-
4.Balanceatperiod-end	15,274,148.35	11,128,065.03	11,825,200.00	38,227,413.38
III.Impairmentprovision
1.Balanceatperiod-beginning	-	-	-	-
2.Increaseinthecurrentperiod	-	-	-	-
3.Decreasedamountoftheperiod	-	-	-	-
4.Balanceatperiod-end	-	-	-	-
4.Bookvalue
1.Bookvalueatperiod-end	32,984,090.65	11,208,481.30	-	44,192,571.95
2.Bookvalueatperiod-beginning	33,875,655.97	14,759,504.03	-	48,635,160.00

AsofDecember31,2022,theGroup'sintangibleassetsmortgagedbybankloansaredetailedinNotes(VII),56"Assetswithrestrictedownershiporuseright".

17.Goodwill

(1)Originalbookvalueofgoodwill

InRMB

Nameoftheinvesteeormattersthatformgoodwill	Balanceattheendoflastyear	Increasethisyear	Decreasethisyear	Balanceattheendofthisyear
SAPOPhotoelectric	9,614,758.55	-	-	9,614,758.55
ShenzhenBeautyCenturyGarment	2,167,341.21	-	-	2,167,341.21

深圳市纺织(集团)股份有限公司2022年年度报告全文

Co.,Ltd.
Total	11,782,099.76	-	-	11,782,099.76

(2)Goodwillimpairmentprovision

InRMB

Nameoftheinvesteeormattersthatformgoodwill	Balanceattheendoflastyear	Increasethisyear	Decreasethisyear	Balanceattheendofthisyear
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

18.Long-termdeferredexpenses

InRMB

Items	Balanceattheendoflastyear	Increasedamountthisyear	Amortizedamountthisyear	Otherreductionamount	Balanceattheendofthisyear
Decorationandfacilitiesrenovationfee	5,387,295.94	902,948.37	1,819,286.52	-	4,470,957.79

19.Deferredincometaxassets/Deferredincometaxliabilities

(1)Uncompensateddeferredincometaxassets

InRMB

Items	Balanceinyear-end		Balanceinyear-begin
	Deductibletemporarydifference	Deferredincometaxassets	Deductibletemporarydifference	Deferredincometaxassets
Creditlossprovision	65,076,915.43	11,372,802.27	3,566,672.28	890,165.29
Assetimpairmentprovision	206,115,717.20	30,917,357.58	2,200,110.43	550,027.61
Unrealizedprofitfrominternaltransactions	2,235,077.97	335,261.70	2,324,192.50	348,628.88
Employeecompensationpayable	9,397,730.55	2,143,607.14	7,679,100.00	1,919,775.00
Deferredincome	116,768,810.33	17,515,321.55	-	-
Deductibleloss	90,052,078.73	13,397,964.96	-	-
Changesinfairvalueofinvestmentinotherequityinstruments	14,831,681.50	3,707,920.38	-	-
Total	504,478,011.71	79,390,235.58	15,770,075.21	3,708,596.78

AccordingtotheGroup'sprofitforecastresultsforthefutureperiod,theGroupbelievesthatitislikelytoobtainsufficienttaxableincomeinthefutureperiodtomakeuseoftheabovedeductibletemporarydifferencesanddeductiblelosses,sorelevantdeferredincometaxassetsarerecognized.

(2)Detailsoftheun-recognizeddeferredincometaxliabilities

InRMB

Items	Closingbalance		Openingbalance
	Deductibletemporarydifference	Deferredincometaxliabilities	Deductibletemporarydifference	Deferredincometaxliabilities
Thedifferencebetweentheinitialrecognitioncostoflong-termequityinvestmentandtaxbasis	62,083,693.36	15,520,923.34	62,083,693.36	15,520,923.34

深圳市纺织(集团)股份有限公司2022年年度报告全文

Items	Closingbalance		Openingbalance
	Deductibletemporarydifference	Deferredincometaxliabilities	Deductibletemporarydifference	Deferredincometaxliabilities
Changesinfairvalueofinvestmentinotherequityinstruments	160,494,427.02	40,123,606.76	178,849,973.46	44,712,493.37
Rentreceivableallocationdifference	7,584,635.96	1,896,158.99	5,636,976.78	1,409,244.20
Total	230,162,756.34	57,540,689.09	246,570,643.60	61,642,660.91

(3)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set

InRMB

Items	Trade-offbetweenthedeferredincometaxassetsandliabilities	Endbalanceofdeferredincometaxassetsorliabilitiesafteroff-set	Trade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-begin	Openingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set
Deferredincometaxassets	(9,566,421.29)	69,823,814.29	-	3,708,596.78
Deferredincometaxliabilities	(9,566,421.29)	47,974,267.80	-	61,642,660.91

(4)Detailsofincometaxassetsnotrecognized

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Deductibletemporarydifference	5,742,636.02	151,027,647.77
Deductibleloss	464,226,095.10	736,209,989.47
Total	469,968,731.12	887,237,637.24

(5)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears

InRMB

Year	Balanceinyear-end
2024	79,132,962.34
2025	16,680,938.23
2026	128,597,715.91
2027	12,155,889.69
2028	22,463,907.95
2029	129,766,788.98
2030	75,427,892.00
Total	464,226,095.10

20.Othernon-currentassets

InRMB

Items	Balanceinyear-end			Balanceinyear-begin
	BookVale	Provisionfordevaluation	Bookvalue	Bookbalance	Provisionfordevaluation	Bookvalue
Prepaymentforengineeringandequipment	16,792,930.20		16,792,930.20	28,769,782.86		28,769,782.86
Timedepositcertificateofmorethanoneyear				30,030,410.96		30,030,410.96

深圳市纺织(集团)股份有限公司2022年年度报告全文

Investmentfundstobeliquidated	25,760,086.27		25,760,086.27	25,760,086.27		25,760,086.27
Total	42,553,016.47		42,553,016.47	84,560,280.09		84,560,280.09

21.Short-termborrowings

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Creditborrowing	7,000,000.00
BillDiscounting	-	37,575,113.83
Total	7,000,000.00	37,575,113.83

22.Notespayable

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
BankacceptanceBill	-	16,682,324.12

23.Accountspayable

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Paymentforgoods	304,916,368.65	327,118,334.45
Servicecharge	11,386,158.86	4,930,868.56
Localities	4,609,134.50	-
Subcontractingpayment	3,970,214.14	1,183,793.09
Others	2,167,997.55	26,351,256.84
Total	327,049,873.70	359,584,252.94

OnDecember31,2022,theGrouphadnosignificantaccountspayablewithanagingofmorethanoneyear.

24.Advanceaccount

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Rentandother	1,393,344.99	1,805,311.57

OnDecember31,2022,theGrouphadnosignificantaccountspayablewithanagingofmorethanoneyear.

25.Contractliabilities

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Goods	4,274,109.40	68,955.21

26.PayableEmployeewage

(1)ListofPayrollpayable

深圳市纺织(集团)股份有限公司2022年年度报告全文

InRMB

Items	Balanceinyear-begin	Increaseinthisperiod	Payableinthisperiod	Balanceinyear-end
Short-termcompensation	59,719,860.24	239,147,775.14	237,927,202.48	60,940,432.90
Post-employmentbenefits-definedcontributionplans	-	16,628,824.21	16,628,824.21	-
Dismissalbenefits	-	754,873.42	528,861.42	226,012.00
Total	59,719,860.24	256,531,472.77	255,084,888.11	61,166,444.90

（2）Short-termremuneration

InRMB

Items	Balanceinyear-begin	Increaseinthisperiod	Decreaseinthisperiod	Balanceinyear-end
Wages,bonuses,allowancesandsubsidies	57,114,308.02	213,501,823.93	213,143,150.08	57,472,981.87
Employeewelfare	-	8,628,459.80	8,599,274.36	29,185.44
Socialinsurancepremiums	-	4,003,804.93	4,003,804.93	-
Including：Medicalinsurance	-	3,409,643.36	3,409,643.36	-
Maternityinsurance	-	250,609.98	250,609.98	-
Workinjuryinsurance	-	343,551.59	343,551.59	-
Publicreservesforhousing	-	7,841,268.71	7,638,877.71	202,391.00
Unionfundsandstaffeducationfee	2,605,552.22	5,172,417.77	4,542,095.40	3,235,874.59
Total	59,719,860.24	239,147,775.14	237,927,202.48	60,940,432.90

（3）Definedcontributionplanslisted

InRMB

Items	Balanceinyear-begin	Increaseinthisperiod	Decreaseinthisperiod	Balanceinyear-end
Basicold-ageinsurancepremiums	-	13,593,639.21	13,593,639.21	-
Unemploymentinsurance	-	303,261.11	303,261.11	-
Annuitypayment	-	2,731,923.89	2,731,923.89	-
Total	-	16,628,824.21	16,628,824.21	-

TheCompanyparticipatesinpensioninsuranceandunemploymentinsuranceplansestablishedbygovernmentagenciesaccordingtoregulations,andaccordingtotheplans,theCompanypaysfeestotheseplansaccordingtotheprescribedstandards.Inadditiontothemonthlydepositfeesmentionedabove,thecompanywillnolongerbearanyfurtherpaymentobligations.Thecorrespondingexpensesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhenincurred.

TheCompanyshallpayRMB13593639.21tothepensioninsuranceplanandRMB303261.11totheunemploymentinsuranceplan.AsofDecember31,2022,thecompanyhadfullypaidthepensionandunemploymentinsuranceplanamountspayableduringthereportingperiod.

27.TaxPayable

InRMB

Items

Balanceinyear-end

Balanceinyear-begin

深圳市纺织(集团)股份有限公司2022年年度报告全文

EnterpriseIncometax	4,655,525.64	1,804,277.95
IndividualIncometax	1,847,004.45	866,274.38
VAT	1,740,677.77	6,334,093.50
Other	654,104.65	195,981.26
Total	8,897,312.51	9,200,627.09

28.Otherpayable

(1)Otherpayableslistedaccordingtothepaymentnature

InRMB

Items	Balanceinyear-end	Balanceinyear-begin
Engineeringequipmentpayment	83,337,092.31	91,213,156.89
Currentpayment	53,102,831.34	51,681,042.57
Depositandsecuritydeposit	45,628,573.39	43,277,481.38
Others	15,276,958.33	15,145,740.51
Total	197,345,455.37	201,317,421.35

(2)Importantotherpayableswithanagingofmorethan1year

InRMB

Items	Balanceattheendofthisyear	Reasonsfornopaymentorcarry-over
BeijingCEEDIEngineering&TechnologyCo.,Ltd.	16,724,271.45	hefinalpaymentsettlementoftheprojecthasnotbeencompleted

29.Non-currentliabilitiesduewithin1year

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Long-termloansduewithinoneyear	97,182,080.19	-
Leaseliabilitiesduewithinoneyear	7,001,358.03	5,175,393.52
Total	104,183,438.22	5,175,393.52

30.Othercurrentliabilities

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Endorsedandunexpiredacceptancebill	48,387,401.67	27,523,903.58
Returnpayable	44,558,340.11	30,741,055.00
Total	92,945,741.78	58,264,958.58

31.Long-termloans

(1)Classificationoflong-termloans

InRMB

Items	Balanceattheendofthisyear	Interestrateinterval	Balanceattheendoflastyear	Interestrateinterval
Guaranteedloan(note)	704,603,665.19	4.06	683,016,243.25	4.41%

深圳市纺织(集团)股份有限公司2022年年度报告全文

		%
Subtotal	704,603,665.19		683,016,243.25
Less:Long-termloansduewithinoneyear	97,182,080.19		-
Less:Long-termloansdueafteroneyear	607,421,585.00		683,016,243.25

Note:SAPOPhotoelectric,asubsidiaryoftheCompany,mortgageditsrealestaterightssuchasthefactorybuilding,andtheCompanyandHangzhouJinjiangGroupCo.,Ltd.provided60%and40%jointguaranteefortheloanrespectively.

32.Leaseliabilities

InRMB

Items	Balanceattheendofthisyear	Balanceattheendoflastyear
Leaseliabilities	15,630,030.74	9,419,249.23
Subtotal	15,630,030.74	9,419,249.23
Less:Leaseliabilitiesduewithinoneyear	7,001,358.03	5,175,393.52
Less:Leaseliabilitiesduewithinoneyear	8,628,672.71	4,243,855.71

33.Deferredincome

InRMB

Items	Balanceattheendoflastyear	Increasethisyear	Decreasethisyear	Balanceattheendofthisyear	Reason
Governmentsubsidies	110,461,293.15	23,754,725.00	16,401,222.05	117,814,796.10	Receivedthegovernmentsubsidie

Projectsinvolvinggovernmentsubsidies:

InRMB

Items	Year-beginningamount	Amountofnewsubsidiesthisyear	Amountofnon-operatingincomeincludedinthisyear	Amountofotherincomeincludedinthisyear	Otherchanges	Year-endamount	Asset-related/Income-related
Productionlinesubsidy	67,839,305.45	23,754,725.00	-	10,607,220.14	-	80,986,810.31	Asset-related
Equipmentsubsidy	36,621,987.70	-	-	5,794,001.91	-	30,827,985.79	Asset-related
Materialsubsidy	6,000,000.00	-	-	-	-	6,000,000.00	Income-related
Total	110,461,293.15	23,754,725.00	-	16,401,222.05	-	117,814,796.10

34.Stockcapital

InRMB

Items	Year-beginningbalance	Changed（+，-）					Balanceinyear-end
		Issuanceofnewshare	Bonusshares	Capitalizationofpublicreserve	Other	Subtotal

深圳市纺织(集团)股份有限公司2022年年度报告全文

Items	Year-beginningbalance	Changed（+，-）					Balanceinyear-end
		Issuanceofnewshare	Bonusshares	Capitalizationofpublicreserve	Other	Subtotal
Totalofcapitalshares	506,521,849.00	-	-	-	-	-	506,521,849.00

35.Capitalreserves

InRMB

Items	Year-beginningbalance	Increaseinthecurrentperiod	Decreaseinthecurrentperiod	Year-endbalance
Sharepremium	1,826,482,608.54	-	-	1,826,482,608.54
Othercapitalreserves	135,117,216.09	-	-	135,117,216.09
Total	1,961,599,824.63	-	-	1,961,599,824.63

36.Othercomprehensiveincome

InRMB

Items	Year-beginningbalance	Amountofcurrentperiod					Year-endbalance
		Amountincurredbeforeincometax	Less:Includedinothercomprehensiveincomeinthepreviousperiod,transferredtoprofitorlossinthecurrentperiod	Amountofcurrentperiod	Year-endbalance	Amountofcurrentperiod
I.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss	118,643,084.23	(18,355,546.45)	-	(8,296,806.99)	(10,058,739.46)	-	108,584,344.77
1.Changesinfairvalueofinvestmentinotherequityinstruments	118,643,084.23	(18,355,546.45)	-	(8,296,806.99)	(10,058,739.46)	-	108,584,344.77
II.Othercomprehensiveincometobereclassifiedintoprofitorloss	1,039,034.82	(145,863.68)	-	-	(26,770.28)	(119,093.40)	1,012,264.54
1.Changesinfairvalueofreceivablesfinancing	-	(297,733.50)	-	-	(178,640.10)	(119,093.40)	(178,640.10)

深圳市纺织(集团)股份有限公司2022年年度报告全文

2.Translationdifferenceofforeigncurrencyfinancialstatements	1,039,034.82	151,869.82	-	-	151,869.82	-	1,190,904.64
Totalofothercomprehensiveincome	119,682,119.05	(18,501,410.13)	-	(8,296,806.99)	(10,085,509.74)	(119,093.40)	109,596,609.31

37.Specialreserves

InRMB

Items	Year-beginningbalance	Increaseinthecurrentperiod	Decreaseinthecurrentperiod	Year-endbalance
Statutorysurplusreserve	98,245,845.47	2,663,815.85		100,909,661.32

38.Retainedprofits

InRMB

Items	currentperiod	previousperiod
Undistributedprofitattheendoflastyearbeforeadjustment	125,317,336.31	86,912,390.50
Totalundistributedprofitsadjustedatthebeginningoftheyear	-	-
Adjustedundistributedprofitatthebeginningoftheyear	125,317,336.31	86,912,390.50
Add:Netprofitattributabletoshareholdersofparentcompanythisyear	73,309,182.94	55,733,468.82
Othercomprehensiveincomecarriedforwardtoretainedincome	-	1,042,493.21
Less:Withdrawalofstatutorysurplusreserve	2,663,815.85	3,175,360.75
Distributionofcommonstockdividends(note)	25,326,092.45	15,195,655.47
Yearendundistributedprofit	170,636,610.95	125,317,336.31

Note:AccordingtotheresolutionoftheGeneralMeetingofShareholdersonMay19,2022,theCompanydistributedacashdividendofRMB0.5(includingtax)forevery10shares,totallyRMB25,326,092.45(includingtax)basedonthesharecapitalof506,521,849sharesasofDecember31,2021.

39.Operatingincomeandoperatingcost

(1)Operatingincomeandoperatingcost

InRMB

Items	Amountincurredthisyear		Amountincurredlastyear
	Income	Cost	Income	Cost
Mainbusiness	2,802,203,439.94	2,373,407,000.36	2,302,304,418.84	1,898,721,579.26
Otherbusiness	35,784,824.42	598,896.07	27,757,262.16	8,272,084.49
Total	2,837,988,264.36	2,374,005,896.43	2,330,061,681.00	1,906,993,663.75

Note:PleaserefertoNote(V),29.1"Significantchangesinaccountingpolicies"fordetailsoftheGroup'sdisclosurerelatedtotrialsales.

(2)Mainbusinessclassifiedbyproduct

InRMB

Producttype	Amountincurredthisyear		Amountincurredlastyear
	Mainbusinessincome	Mainbusinesscost	Mainbusinessincome	Mainbusinesscost

深圳市纺织(集团)股份有限公司2022年年度报告全文

Producttype	Amountincurredthisyear		Amountincurredlastyear
	Mainbusinessincome	Mainbusinesscost	Mainbusinessincome	Mainbusinesscost
Polarizersales	2,693,787,636.62	2,317,793,097.44	2,135,803,339.71	1,827,211,496.45
Propertyleasingandmanagement	80,168,785.00	22,508,188.92	111,568,500.55	22,996,155.29
Textilesales	28,247,018.32	33,105,714.00	54,932,578.58	48,513,927.52
Subtotal	2,802,203,439.94	2,373,407,000.36	2,302,304,418.84	1,898,721,579.26

(3)Mainbusinessclassifiedbyregion

InRMB

Mainbusinessregion	Amountincurredthisyear		Amountincurredlastyear
	Mainbusinessincome	Mainbusinesscost	Mainbusinessincome	Mainbusinesscost
Domestic	2,686,847,406.83	2,278,271,215.01	2,048,182,283.94	1,682,912,318.63
Overseas	115,356,033.11	95,135,785.35	254,122,134.90	215,809,260.63
Subtotal	2,802,203,439.94	2,373,407,000.36	2,302,304,418.84	1,898,721,579.26

(4)Descriptionofperformanceobligations

TheGroup'sgoodssalesaremainlytheproductionandsalesofpolarizerandtextile-relatedgoods.Forgoodssoldtocustomers,theGrouprecognizesincomewhenthecontrolofthegoodsistransferred,thatis,whenthegoodsaredeliveredtothedesignatedplaceoftheotherpartyandsignedbytheotherparty.Sincethedeliveryofgoodstocustomersrepresentstherighttounconditionallyreceivethecontractconsideration,thematurityofthemoneyonlydependsonthepassageoftime,sotheGrouprecognizesareceivablewhenthegoodsaredeliveredtoprofessionalcustomers.Whenthecustomerprepaysthepayment,theGrouprecognizesthetransactionamountreceivedasacontractualliabilityuntilthegoodsaredeliveredtothecustomer.

TheGroupprovidespropertyandleasingservicestocustomers,whichisaperformanceobligationtobefulfilledwithinacertainperiodoftime.TheGrouprecognizesincomeintheprocessofprovidingpropertyandleasingservices.

(5)Descriptionofallocationtoremainingperformanceobligations

OnDecember31,2022,theamountofcontractualliabilitiescorrespondingtotheperformanceobligationsthattheGrouphassignedbuthasnotyetfulfilledorhasnotyetfullyfulfilledisRMB4,274,109.40,andtheincomewillberecognizedwhenthecustomerobtainsthecontrolofthegoods.

40.Taxesandsurcharges

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Propertytax	5,213,976.28	5,826,834.91
Urbanmaintenanceandconstructiontax	366,211.93	1,625,005.70
Surchargeforeducation	237,396.39	1,169,628.61
Othertaxes	2,089,542.31	1,902,078.87
Total	7,907,126.91	10,523,548.09

41.Salesexpenses

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Employeecompensation	18,560,229.96	18,266,837.81
Salesservicecharge	10,661,049.94	12,684,139.28
Businessentertainment	2,214,489.62	1,256,926.46
Others	4,526,759.83	5,765,432.84
Total	35,962,529.35	37,973,336.39

深圳市纺织(集团)股份有限公司2022年年度报告全文

42.Managementcost

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Employeecompensation	83,952,597.31	80,805,949.97
Depreciationcost	12,258,281.68	10,728,532.58
Professionalservicefee	7,197,534.84	8,120,482.28
Amortizationofintangibleassets	5,082,893.36	5,030,106.23
Propertyleasingandutilities	5,252,212.15	3,745,400.74
Businessentertainment	1,557,382.87	1,754,789.06
Others	13,088,038.08	11,903,569.29
Total	128,388,940.29	122,088,830.15

43.R&Dexpenses

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Employeecompensation	16,349,423.75	15,697,764.59
Materialconsumption	58,840,560.48	83,197,051.56
Depreciationcost	3,518,432.27	3,326,098.79
Others	1,811,739.04	1,287,849.59
Total	80,520,155.54	103,508,764.53

44.Financialexpenses

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Interestexpense(note)	31,131,112.38	24,113,442.39
Less:capitalizedinterestexpense	-	9,807,167.26
Less:interestincome	8,327,248.75	1,655,853.59
Exchangedifference	(14,569,863.53)	(20,976,430.83)
Handlingfeesandothers	4,709,606.47	8,195,665.20
Total	12,943,606.57	(130,344.09)

Note:Theinterestexpenseonleaseliabilitiesin2022isRMB203482.85.

45.Otherincome

InRMB

Items	Amountincurredinthisyear	Amountincurredinlastyear
Transfer-inofdeferredincome	16,401,222.05	13,939,029.06
Industrydevelopmentsupportfunds(Note1)	6,384,733.03	380,356.97
Enterprisedevelopmentsupportfunds(Note2)	2,062,888.38	5,272,800.00
Taxsubsidy	1,262,440.33	0.00
Others	238,927.10	51,193.30
Total	26,350,210.89	19,643,379.33

深圳市纺织(集团)股份有限公司2022年年度报告全文

Note1:IndustrydevelopmentsupportfundsmainlyincludesubsidiesforthefirstbatchofkeynewmaterialinsurancecompensationprojectsoftheBureauofIndustryandInformationTechnologyin2022,incentiveprojectsforindustrialenterprisestoexpandproductioncapacityin2022,andsubsidiesforthe2022EmergingIndustrySupportPlan(NewMaterials)oftheBureauofIndustryandInformationTechnology.Note2:TheenterprisedevelopmentsupportfundsmainlyincludetheincentivefundsforenterpriseswithharmoniouslaborrelationsinPingshanDistrictin2020,thesubsidyfundsforimprovingtheatmosphericenvironmentqualityofShenzhenMunicipalEcologicalEnvironmentBureau,andthe"tenitems"policyfundsubsidiesforenterpriseswithwarmheartsinPingshanDistrictin2022.

46.Investmentincome

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Long-termequityinvestmentincomecalculatedbyequitymethod	1,307,639.15	33,984.66
Investmentincomefromdisposaloflong-termequityinvestment	-	20,779.93
Investmentincomeoftransactionalfinancialassetsduringtheholdingperiod	15,457,585.05	17,407,221.99
Dividendincomefrominvestmentinotherequityinstrumentsduringtheholdingperiod	2,618,127.67	2,551,896.02
Others	-	2,649,130.46
Total	19,383,351.87	22,663,013.06

47.Incomefromchangesinfairvalue

InRMB

Sourcesofincomefromchangesinfairvalue	Amountincurredthisyear	Amountincurredlastyear
Transactionalfinancialassets	-	2,150,943.40

48.Creditimpairmentgain(loss)

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Impairmentlossofnotesreceivable	365,055.74	(280,565.00)
Gain(loss)fromimpairmentofaccountsreceivable	(11,584,551.67)	2,500,153.07
Gain(loss)fromimpairmentofotherreceivables	6,600,942.84	(7,201,148.60)
Total	(4,618,553.09)	(4,981,560.53)

49.Assetimpairmentgain(loss)

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Inventorydepreciationloss	(183,706,022.57)	(130,363,681.96)
Impairmentlossoffixedassets	(18,867,443.27)	(32,769.22)

深圳市纺织(集团)股份有限公司2022年年度报告全文

Total

(202,573,465.84)

(130,396,451.18)

50.Assetdisposalincome

InRMB

Items	Amountincurredthisyear	Amountincurredlastyear
Gains&lossesonforeigninvestmentinfixedassets	31,264.60	(597,458.77)

51.Non-Operationincome

InRMB

Items	Amountofthisyear	Amountoflastyear	Recordedintheamountofthenon-recurringgainsandlosses
Insurancecompensation	7,652,845.40	3,477,438.60	7,652,845.40
Payablewithoutpayment	6,334,444.97	17,140,459.60	6,334,444.97
Other	1,005,792.20	667,888.44	1,005,792.20
Total	14,993,082.57	21,285,786.64

52.Non-currentexpenses

InRMB

Items	Amountofthisyear	Amountoflastyear	Theamountofnon-operatinggains&lossed
Non-currentassetDispositionloss	26,020.82	369,187.12	26,020.82
Compensationexpenses	7,248,331.74	-	7,248,331.74
Fineexpenses	778.86	1,309,172.27	778.86
Other	201,926.05	7,903.96	201,926.05
Total	7,477,057.47	1,686,263.35	7,477,057.47

53.Incometaxexpenses

(1)Incometaxexpenses

InRMB

Items	Amountofthisyear	Amountoflastyear
Currentincometaxexpense	4,043,680.11	8,174,724.28
Deferredincometaxexpense	(71,486,803.63)	2,944,072.68
Total	(67,443,123.52)	11,118,796.96

(2)Reconciliationofaccountprofitandincometaxexpenses

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
Totalprofits	44,348,842.80	77,185,270.78
Currentincometaxexpenseaccountedbytaxandrelevantregulations	11,087,210.70	19,296,317.70
Influenceofdifferenttaxratesappliedbysomesubsidiaries	(2,715,451.54)	(5,229,585.58)
非应税收入的影响	(2,483,588.11)	(53,103.78)
Non-deductiblecosts,expensesandlosses	771,675.89	4,571,839.81
Taximpactbytheunrecognizeddeductiblelossesanddeductibletemporarydifferencesinpreviousyears	(66,704,686.87)	-
Profitandlossofjointventureandassociatedenterprisesaccountedforby	2,931,982.20	8,059,643.49

深圳市纺织(集团)股份有限公司2022年年度报告全文

equitymethod
Taximpactofresearchanddevelopmentfeeplusdeduction	(10,330,265.79)	(15,526,314.68)
Incometaxfee	(67,443,123.52)	11,118,796.96

54.Supplementaryinformationtocashflowstatement

(1)Othercashreceivedrelevanttooperatingactivities

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
LetterofCreditDeposit	167,866,753.31	35,875,977.74
Interestincome	8,067,195.21	1,655,853.59
GovernmentSubsidy	33,703,713.84	19,363,739.42
Currentaccount	8,658,637.60	31,729,758.78
Total	218,296,299.96	88,625,329.53

(2)Othercashpaidrelatedtooperatingactivities

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
Paymentofcreditdeposit	25,106,708.19	164,509,022.41
Cash	87,642,432.49	48,012,370.68
Currentaccountandother	9,199,351.73	12,867,319.88
Total	121,948,492.41	225,388,712.97

(3)Cashreceivedrelatedtootherinvestmentactivities

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
Structureddeposits,financialproducts,principalandincome	1,316,000,000.00	1,128,309,484.61

(4).Cashpaidrelatedtootherinvestmentactivities

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
Structureddeposits,financialproducts,	1,140,433,371.49	965,000,000.00

（5）Cashpaidrelatedwithfinancingactivities

InRMB

Items	Amountofthisyear	Amountoflastyear
Restrictedstockrepurchase		7,820,298.30
Leasepayment	9,144,572.43	4,817,974.70
Total	9,144,572.43	12,638,273.00

55.SupplementInformationforcashflowstatement

（1）SupplementInformationforcashflowstatement

InRMB

深圳市纺织(集团)股份有限公司2022年年度报告全文

Items	Amountofcurrentperiod	Amountofpreviousperiod
I.Adjustingnetprofittocashflowfromoperatingactivities
Netprofit	111,791,966.32	66,066,473.82
Add:assetimpairmentprovision	202,573,465.84	130,396,451.18
Creditlosspreparation	4,618,553.09	4,981,560.53
Depreciationoffixedassetsandinvestmentproperty	256,562,100.50	182,116,694.00
Depreciationofright-of-useassets	9,007,666.58	4,540,987.37
Amortizationofintangibleassets	5,082,893.36	5,030,106.23
AmortizationofLong-termdeferredexpenses	1,819,286.52	1,171,163.32
Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets	(31,264.60)	597,458.77
Fixedassetsscraploss	26,020.82	369,187.12
Lossonfairvaluechanges	-	(2,150,943.40)
Financialcost	29,183,633.15	14,306,275.13
Lossoninvestment	(19,383,351.87)	(22,663,013.06)
Decreaseofdeferredincometaxassets	(66,115,217.51)	1,534,828.48
Increasedofdeferredincometaxliabilities	(5,371,586.12)	2,500,994.33
Decreaseofinventories	1,248,186.40	(270,089,816.70)
Deceaseofoperatingreceivables	(81,468,525.61)	(58,547,894.61)
IncreasedofoperatingPayable	40,694,723.73	(64,597,492.86)
Netcashflowsarisingfromoperatingactivities	490,238,550.60	(4,436,980.35)
II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows:
Endbalanceofcashequivalents	874,474,834.46	302,408,433.72
Less:Beginningbalanceofcashequivalents	302,408,433.72	278,337,236.95
Netincreaseofcashandcashequivalent	572,066,400.74	24,071,196.77

(3)Componentofcashandcashequivalents

InRMB

Items	Year-endbalance	Year-beginningbalance
ICash	874,474,834.46	302,408,433.72
Including:cashonhand	3,980.56	792.64
Bankdepositsavailableforpaymentatanytime	874,470,853.90	302,407,641.08
Othermonetaryfundsavailableforpaymentatanytime	-	-
IICashequivalents	-	-
IIIBalanceofcashandcashequivalentsattheendoftheyear	874,474,834.46	302,408,433.72

InRMB

56.Theassetswiththeownershiporuserightrestricted

InRMB

Items	Bookvalueattheendofthereportingperiod	Causeofrestriction
Monetaryfunds	116,990,685.31	Note(VII),1
Notereceivable	48,387,401.67	Note(VII),3.(3)
Otherreceivables	6,559,327.26	Fundssubjecttofreeze
Fixedassets	470,366,658.55	Mortgage
Intangibleassets	32,984,090.65	Pledge
Total	675,288,163.44

57.Foreigncurrencymonetaryitems

(1)Foreigncurrencymonetaryitems

深圳市纺织(集团)股份有限公司2022年年度报告全文

InRMB

Items	Closingforeigncurrencybalance	Exchangerate	ClosingconverttoRMBbalance
Monetaryfunds			21,802,736.14
Including：USD	2,507,856.21	6.9742	17,490,290.78
Euro	81,323,569.66	0.0524	4,261,355.05
HKD	57,199.18	0.8932	51,090.31
Accountreceivable			20,886,202.07
Including：USD	2,943,419.82	6.9742	20,527,998.51
Euro	2,092,440.00	0.0524	109,643.86
HKD	278,280.00	0.8932	248,559.70
Otherreceivable			7,051,194.01
Including：USD	913,364.76	6.9742	6,369,988.52
HKD	762,657.29	0.8932	681,205.49
Accountpayable			249,984,599.31
Including：USD	6,296,670.99	6.9742	43,914,242.82
Yen	3,932,333,073.99	0.0524	206,054,253.08
HKD	18,028.90	0.8932	16,103.41
Otherpayable			5,091,286.65
Including：USD	676,686.00	6.9742	4,719,343.50
Yen	3,381,984.00	0.0524	177,215.96
Euro	22,500.00	7.4229	167,015.25
HKD	31,025.46	0.8932	27,711.94

VIII.Changeofconsolidationscope

In2022,thescopeofconsolidationoftheGroupremainedunchanged.

IX.Equityinothersubjects

1.Equityinsubsidiaries

(1)Compositionoftheenterprisegroup

Subsidiaryname	Mainplaceofbusiness	Placeofregistration	Businessnature	Shareholdingratio%		Acquisitionmethod
				Direct	Indirect
ShenzhenLishiIndustryDevelopmentCo.,Ltd	Shenzhen	Shenzhen	Propertyleasing	100.00	-	Establishment
ShenzhenHuaqiangHotel	Shenzhen	Shenzhen	Propertyleasing	100.00	-	Establishment
ShenzhenShenfangRealEstateManagementCo.,Ltd.	Shenzhen	Shenzhen	Propertymanagement	100.00	-	Establishment
ShenzhenBeautyCenturyGarmentCo.,Ltd.	Shenzhen	Shenzhen	Textileproductionandsales	100.00	-	Establishment
ShenzhenShenfangSungangRealEstateManagementCo.,Ltd.	Shenzhen	Shenzhen	Propertymanagement	100.00	-	Establishment
SAPOPhotoelectric	Shenzhen	Shenzhen	Polarizerproductionandsale	60.00	-	Acquisition
Shengtou(Hongkong)Co.,Ltd.	Hongkong	Hongkong	Polarizersales	-	100.00	Establishment

深圳市纺织(集团)股份有限公司2022年年度报告全文

ShenzhenShengjinlianTechnologyCo.,Ltd.

Shenzhen

Shenzhen

Polarizerproductionandsale,etc.

-

100.00

Establishment

(2)Importantnon-wholly-ownedsubsidiaries

InRMB

Subsidiaryname	Minorityshareholdingratio	Profitandlossattributabletominorityshareholdersinthisyear	Dividendsdeclaredtominorityshareholdersinlastyear	Balanceofminorityequityattheendoftheperiod
ShenzhenSAPOPhotoelectricCo.,Ltd.	40.00%	38,482,783.38		1,181,777,770.21

(3)Majorfinancialinformationofimportantnon-wholly-ownedsubsidiaries

InRMB

Items	SAPOPhotoelectric
	Year-endbalance/Amountincurredthisyear
Currentassets	1,936,541,263.47
Non-currentassets	2,419,432,602.01
Totalassets	4,355,973,865.48
Currentliabilities	674,071,107.48
Non-currentliabilities	732,819,068.02
Totalliabilities	1,406,890,175.50
Operatingincome	2,735,055,209.89
Netprofit	96,206,958.45
Totalcomprehensiveincome	95,909,224.95
Cashflowfromoperatingactivities	484,437,283.64

2Equityinjointventurearrangementsorjointventures

(1)Importantjointventuresorassociatedenterprises

Nameofjointventureorassociatedenterprise	Mainplaceofbusiness	Placeofregistration	Businessnature	Shareholdingratio		Accountingtreatmentmethodofinvestmentinjointventuresorassociatedenterprises
				Direct	Indirect
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.(Note)	Shenzhen	Shenzhen	Propertyleasing	50.16%		Equitymethod

Note:AccordingtothearticlesofassociationofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.,theboardofdirectorsconsistsofsixdirectors,includingthreedirectorsappointedbytheGroupandthreedirectorsappointedbyQiaohuiIndustrialCo.,Ltd.,andthevotingattheboardmeetingisvalidonlyifitisapprovedbymorethantwothirdsofalldirectors.Therefore,theGroupcannotcontrolShenzhenGuanhuaPrintingandDyeingCo.,Ltd.andhasnotincludeditintheconsolidatedfinancialstatementsoftheGroup.

深圳市纺织(集团)股份有限公司2022年年度报告全文

(2)Mainfinancialinformationofimportantjointventure

InRMB

Items	ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.
	Year-endbalance/Amountincurredthisyear
Currentassets	47,899,181.48
Non-currentassets	217,362,821.36
Totalassets	265,262,002.84
Currentliabilities	16,619,409.76
Non-currentliabilities	33,025,262.69
Totalliabilities	49,644,672.45
Owners'equityattributabletotheparentcompany	215,617,330.39
Shareofnetassetscalculatedaccordingtoshareholdingratio	108,153,652.92
Adjustmentmatters
-Goodwill	21,595,462.44
-Others	(242,843.60)
Bookvalueofequityinvestmentinjointventures	129,506,271.76
Fairvalueofequityinvestmentofassociatedenterpriseswithopenquotation	-
Operatingincome	23,195,512.34
Netprofit	2,575,847.73
Othercomprehensiveincome	-
Totalcomprehensiveincome	2,575,847.73
Dividendsreceivedfromthejointventurethisyear	-

(3)Summaryfinancialinformationofunimportantjointventuresandassociatedenterprises

InRMB

Items	Year-endbalance/Amountincurredthisyear
Associatedenterprise
Totalbookvalueofinvestment	4,975,563.98
Totalofthefollowingitemscalculatedbyshareholdingratio
-Netprofit	15,593.93
-Othercomprehensiveincome	151,869.82
-Totalcomprehensiveincome	167,463.75

X.Risksrelatedtofinancialinstruments

TheGroup'smainfinancialinstrumentsincludemonetaryfunds,transactionalfinancialassets,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,otherequityinstrumentsinvestment,short-termloans,accountspayable,otherpayables,othercurrentliabilities,long-termloansandleaseliabilities,etc.Attheendofthisyear,thefinancialinstrumentsheldbytheGroupareasfollows.SeeNote(VII)fordetails.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheGrouptoreducetheserisksareasfollows.ThemanagementoftheGroupmanagesandmonitorstheseriskexposurestoensurethattheaboverisksarecontrolledwithinalimitedrange.

InRMB

Items	Balanceattheendofthisyear
Financialassets
Measuredatfairvalue,withitschangesincludedincurrentprofitsandlosses
Transactionalfinancialassets	319,605,448.44

Measuredatfairvalue,withitschangesincludedinothercomprehensiveincome

Measuredatfairvalue,withitschangesincludedinothercomprehensiveincome
Receivablefinancing	54,413,796.91
Investmentinotherequityinstruments	167,678,283.27

深圳市纺织(集团)股份有限公司2022年年度报告全文

Measuredinamortizedcost
Monetaryfunds	991,789,968.19
Notereceivable	74,619,100.26
Accountsreceivable	636,583,469.93
Otherreceivables	10,288,124.02

Financialliabilities

Financialliabilities
Measuredinamortizedcost
Short-termloan	7,000,000.00
Accountspayable	327,049,873.70
Otherpayables	196,701,468.33
Othercurrentliabilities	92,945,741.78
Long-termloans	704,603,665.19
Leaseliabilities	15,630,030.74

TheGroupusessensitivityanalysistechnologytoanalyzethepossibleimpactofreasonableandpossiblechangesinriskvariablesoncurrentprofitsandlossesandshareholders'equity.Becauseanyriskvariablerarelychangesinisolation,andthecorrelationbetweenvariableswillhaveagreatimpactonthefinalamountofariskvariablechange,thefollowingcontentsarecarriedoutundertheassumptionthateachvariablechangeisindependent.

1.Riskmanagementobjectivesandpolicies

TheGroup'sgoalinriskmanagementistostrikeaproperbalancebetweenrisksandbenefits,reducethenegativeimpactofrisksontheGroup'soperatingperformancetothelowestlevel,andmaximizetheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementgoal,thebasicstrategyoftheGroup'sriskmanagementistoidentifyandanalyzeallkindsofrisksfacedbytheGroup,establishanappropriaterisktolerancebottomlineandconductriskmanagement,andtimelyandreliablysuperviseallkindsofriskstocontroltheriskswithinalimitedrange.

1.1Marketrisk

1.1.1Foreignexchangerisk

Foreignexchangeriskreferstotheriskoflossescausedbyexchangeratechanges.TheGroup'sforeignexchangerisksaremainlyrelatedtoUSdollars,Japaneseyen,HongKongdollarsandeuros.ExceptforsomeimportpurchasesandexportsalesoftheGroup'scompanieslocatedinChinesemainlandwhicharemainlysettledinUSdollars,Japaneseyen,HongKongdollarsandeuros,othermajorbusinessactivitiesoftheGrouparesettledinRMB.

Asof31December2022,theGroup'sassetsandliabilitieswereallRMBbalances,exceptforthemonetaryitemsinforeigncurrenciesmentionedinNotes(VII),(57).Theforeignexchangerisksarisingfromtheassetsandliabilitieswithforeigncurrencybalances(convertedintoRMB)describedinthetablebelowmayhaveanimpactontheGroup'soperatingresults.

InRMB

Items	Balanceattheendofthisyear
	Assets	Liabilities
USD	44,388,277.81	48,633,586.32
Yen	4,370,998.91	206,231,469.04
Euro	-	167,015.25
HKD	980,855.50	43,815.35

TheGrouppayscloseattentiontotheimpactofexchangeratechangesontheGroup'sforeignexchangerisk.Atpresent,theGrouphasnottakenanymeasurestoavoidforeignexchangerisks.

Sensitivityanalysisofforeignexchangerisk

Sensitivityanalysisofforeignexchangeriskassumesthatallnetinvestmenthedgingandcashflowhedgingofoverseasoperationsarehighlyeffective.

Onthebasisoftheaboveassumptions,withothervariablesunchanged,thepre-taximpactofpossiblereasonableexchangeratechangesoncurrentprofitsandlossesandshareholders'equityisasfollows:

InRMB

Items	Changesinexchangerate	Thisyear
		Impactonprofits	Impactonshareholders'equity
Allforeign	AppreciationofRMBby5%	(10,266,787.69)	(10,266,787.69)

深圳市纺织(集团)股份有限公司2022年年度报告全文

currencies
Allforeigncurrencies	DepreciationofRMBby5%	10,266,787.69	10,266,787.69

1.1.2.Interestraterisk-riskofcashflowchangeTheCompany'sriskofcashflowchangesoffinancialinstrumentscausedbyinterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.TheGroupcontinuestopaycloseattentiontotheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintainfloatinginterestratesontheseloans,andthereisnointerestrateswaparrangementatpresent.

SensitivityanalysisofinterestrateriskWithothervariablesunchanged,thepre-taximpactofpossiblereasonableinterestratechangesoncurrentprofitsandlossesandshareholders'equityisasfollows:

InRMB

Items	Interestratechange	Thisyear
		Impactonprofits	Impactonshareholders'equity
Floating-rateloan	Increaseby1%	(7,108,088.43)	(7,108,088.43)
Floating-rateloan	Decreaseby1%	7,108,088.43	7,108,088.43

1.2.CreditRiskAsofDecember31,2022,thelargestcreditriskexposurethatmaycausefinanciallossestotheCompanymainlycamefromthelossoftheCompany'sfinancialassetscausedbythefailureoftheotherpartytoperformitsobligations,specificallyincludingmonetaryfunds,transactionalfinancialassets,notesreceivable,accountsreceivable,accountsreceivablefinancing,andotherreceivables.Onthebalancesheetdate,thebookvalueoftheCompany'sfinancialassetshasrepresenteditsmaximumcreditriskexposure.

Inordertoreducecreditrisk,thecompanyarrangesspecializedpersonneltodeterminethecreditlimit,conductcreditapproval,andimplementothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverduedebts.Inaddition,theCompanyreviewstherecoveryoffinancialassetsoneachbalancesheetdatetoensurethatadequateprovisionforcreditlosseshasbeenmadeforrelevantfinancialassets.Therefore,themanagementofthecompanybelievesthatthecreditriskundertakenbythecompanyhasbeengreatlyreduced.

TheCompany'smonetaryfundsaredepositedinbankswithhighcreditratings,somonetaryfundsonlyhavelowcreditrisk.

AsofDecember31,2022,thecompany'sbalanceofaccountsreceivablefromthetopfivecustomerswas364098756.84yuan,accountingfor53.21%ofthecompany'sbalanceofaccountsreceivable.Inaddition,theCompanyhasnoothersignificantcreditriskexposureconcentratedinasinglefinancialassetoracombinationoffinancialassetswithsimilarcharacteristics.

1.3LiquidityRisk

Whenmanagingliquidityrisk,theCompanymaintainsandmonitorscashandcashequivalentsthatthemanagementbelievesaresufficienttomeettheCompany'soperationalneedsandreducetheimpactofcashflowfluctuations.Themanagementofthecompanymonitorstheuseofbankloansandensurescompliancewithloanagreements.

AsofDecember31,2022,theCompany'sunusedcomprehensivebankcreditlinewasRMB212.1006million.

ThefinancialliabilitiesheldbytheCompanyareanalyzedbasedonthematurityofundiscountedremainingcontractualobligationsasfollows:

InRMB

Item	Within1year	1-5years	Over5years	Total
Short-termloan	7,179,508.33	-	-	7,179,508.33
Accountspayable	327,049,873.70	-	-	327,049,873.70
Otherpayables	196,701,468.33	-	-	196,701,468.33
Othercurrentliabilities	92,945,741.78	-	-	92,945,741.78
Long-termloans	97,182,080.19	594,693,456.05	150,625,989.54	842,501,525.78
Leaseliabilities	7,475,902.01	9,546,024.00	-	17,021,926.01

2.Transferoffinancialassets

2.1Financialassetstransferredbutnotcompletelyderecognized

Inthecurrentyear,theGrouphascumulativelydiscountedbankacceptancebillsofRMB18071354.97fromlargestate-ownedcommercialbankswithhighercreditratingsandlistednationaljoint-stockcommercialbanks,

深圳市纺织(集团)股份有限公司2022年年度报告全文

obtainingcashconsiderationofRMB17658492.79.Thereisapossibilitythatsuchacceptancebillscannotbehonoredatmaturity.Iftheacceptancebillscannotbeacceptedatmaturity,thebankhastherighttorequiretheGrouptopayofftheoutstandingbalance.AstheGroupstillbearsmajorriskssuchascreditrisksrelatedtotheseacceptancebills,theGroupcontinuestofullyrecognizethecarryingamountofnotesreceivableandrecognizetheamountsreceivedaspledgedloansduetotransfers.OnDecember31,2022,thediscountedacceptancebillsmentionedabovehaveallexpired.OnDecember31,2022,thebookvalueofthebankacceptancebillendorsedbythecompanytosuppliersforsettlementofaccountspayablewasRMB48387401.67.TheCompanybelievesthatalmostallrisksandrewardsrelatedtonotesreceivableatthetimeofendorsementhavenotbeentransferred,whichdoesnotmeettheconditionsforderecognitionoffinancialassets.Therefore,therecognitionofrelevantnotesreceivablehasnotbeencompletelyterminatedontheendorsementdate.

2.2Therecognitionhasbeenterminatedasawhole,butthetransferorcontinuestobeinvolvedinthetransferredfinancialassetsTheCompanyendorsesbankacceptancebillsheldbylargestate-ownedcommercialbankswithhighcreditratingsandlistednationaljoint-stockcommercialbankstoathirdparty.Asalmostallrisksandrewardsrelatedtothesebankacceptancebills,suchasinterestraterisk,havebeentransferredtothebank,theCompanyterminatestherecognitionofbankacceptancebillsthathavebeenendorsedbutnotexpired.AccordingtotherelevantprovisionsoftheNegotiableInstrumentsLawofthePeople'sRepublicofChina,ifthebankacceptancebillfailstobepaidandaccepteduponmaturity,theundertakerhastherighttorequirethecompanytopayofftheoutstandingbalance,sothecompanycontinuestobeinvolvedintheendorsedbankacceptancebill.AsofDecember31,2022,thebankacceptancebillthatthecompanyhasendorsedbutnotexpiredwasRMB54995349.12.XI.Disclosureoffairvalue

1.Endingfairvalueofassetsandliabilitiesmeasuredatfairvalue

InRMB

Items	Year-endfairvalue
	FairvaluemeasurementofLevel1	FairvaluemeasurementofLevel2	FairvaluemeasurementofLevel3	Total
Measuredatfairvaluecontinuously
(I)Transactionalfinancialassets	-	319,605,448.44	-	319,605,448.44
(II)Receivablefinancing	-	-	54,413,796.91	54,413,796.91
(III)Investmentinotherequityinstruments	-	-	167,678,283.27	167,678,283.27
Totalassetscontinuouslymeasuredatfairvalue	-	319,605,448.44	222,092,080.18	541,697,528.62

2.ForLevel2itemsmeasuredatfairvaluecontinuouslyandnon-continuously,thevaluationtechniquesandqualitativeandquantitativeinformationofimportantparametersareadopted

InRMB

Items	Fairvalueattheendofthisyear	Valuationtechnique	Inputvalue
Transactionalfinancialassets	319,605,448.44	Discountedcashflowtechnique	Expectedyield

深圳市纺织(集团)股份有限公司2022年年度报告全文

3.ForLevel3itemsmeasuredatfairvaluecontinuouslyandnon-continuously,thevaluationtechniquesandqualitativeandquantitativeinformationofimportantparametersareadopted

Items	Fairvalueattheendofthisyear	Valuationtechnique	Inputvalue
Receivablefinancing	54,413,796.91	Discountedcashflowtechnique	Discountrate
Investmentinotherequityinstruments	167,678,283.27	Comparisonoflistedcompanies	P/Bratioofsimilarlistedcompanies
		Comparableincomemethod	Marketprice

4.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue

Financialassetsandliabilitiesnotmeasuredatfairvaluemainlyincludemonetaryfunds,notesreceivable,accountsreceivable,otherreceivables,short-termloans,accountspayable,otherpayables,long-termloansandleaseliabilities.

ThemanagementoftheGroupbelievesthatthebookvaluesoffinancialassetsandfinancialliabilitiesmeasuredinamortizedcostinthefinancialstatementsareclosetotheirfairvalues.XII.Relatedpartiesandrelatedpartytransactions

1.Informationabouttheparentcompanyofthecompany.

Nameofparentcompany	Placeofregistration	Businessnature	Registeredcapital(RMB'0,000)	ShareholdingratiooftheparentcompanytotheCompany%	PercentageofvotingrightsoftheparentcompanytotheCompany%
ShenzhenInvestmentHoldingsCo.,Ltd	18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen	Equityinvestment,realestatedevelopment,etc	2,850,900.00	46.21	46.21

Descriptionoftheparentcompanyofthecompany

TheparentcompanyoftheCompanyisawhollystate-ownedcompanyapprovedandauthorizedbytheShenzhenMunicipalGovernment,andexercisestheinvestorfunctionforthestate-ownedenterpriseswithintheauthorizedscopeaccordingtolaw.

Duringthereportingperiod,thechangesintheregisteredcapitaloftheparentcompanyareasfollows:

Unit:10000yuan

Balanceattheendoflastyear	Increasethisyear	Decreasethisyear	Balanceattheendofthisyear
2,800,900.00	50,000.00	-	2,850,900.00

2.InformationonsubsidiariesoftheEnterprisePleaserefertoNotes(IX),1fordetailsofthesubsidiariesoftheEnterprise.

3.InformationonjointventuresandassociatedenterprisesoftheEnterpriseSeeNotes(IX),2fordetailsoftheimportantjointventuresorassociatedenterprisesoftheEnterprise.

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4.Informationonotherrelatedparties

Namesofrelatedparties	RelationshipbetweentheEnterprise
ShenzhenXinfangKnittingCo.,Ltd.	TheCompany'sshareholdingcompanyandthechairmanofthecompanyaretheemployeesoftheGroup
ShenzhenDailishiUnderwearCo.,Ltd.	TheCompany'sshareholdingcompanyandthechairmanofthecompanyaretheemployeesoftheGroup
ShenzhenTianmaMicroelectronicsCo.,Ltd.(Note)	TheformerchairmanoftheCompanyistheformervicechairmanoftheCompany
HengmeiPhotoelectricTechnologyCo.,Ltd.	Thecompany'ssubsidiary,ShengboOptoelectronics,isajointstockcompanywithminorityshareholders.ThechairmanofthecompanyisheldbyaformerdirectorofShengboOptoelectronics

Note:HengmeiPhotoelectricTechnologyCo.,Ltd.willnolongerbearelatedpartyoftheCompanyin2022.

5.Relatedpartytransactions

(1)Saleofgoods

InRMB

Relatedparty	Contentofrelatedpartytransaction	Amountincurredthisyear	Amountincurredlastyear
ShenzhenTianmaMicroelectronicsCo.,Ltd	Polarizer	-	1,441,975.42
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.	Textile	8,849.56	-
ShenzhenInvestmentHoldingsCo.,Ltd	Textile	-	48,907.96
Total		8,849.56	1,490,883.38

(2)Lendingofrelatedpartyfunds

InRMB

Relatedparty	Borrowingamount	Startdate	Duedate	Description
Lending
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.	3,806,454.17	2019.07.30	2023.07.30	Theannuallendingrateis0.30%

(3)Rewardsforthekeymanagementpersonnel

InRMB

RewardsforthekeymanagementpersonnelItems	Amountofthisyear	Amountoflastyear
	11,966,067.00	11,152,828.00

6.Receivablesandpayablesofrelatedparties

（1）Receivables

InRMB

Name	Relatedparty	Amountatyearend		Amountatyearbeginning
		Balanceof	Balanceof	Balanceof	Baddebt

深圳市纺织(集团)股份有限公司2022年年度报告全文

		Book	Book	Book	Provision
Accountreceivable	ShenzhenTianmaMicroelectronicsCo.,Ltd.	-	-	412,495.18	18,686.03
Accountreceivable	ShenzhenInvestmentHoldingsCo.,Ltd	-	-	55,266.00	2,503.55
OtherAccountreceivable	ShenzhenDailishiUnderwearCo.,Ltd.	1,100,000.00	58,850.00	1,100,000.00	55,000.00

（2）Payables

InRMB

Name	Relatedparty	Amountatyearend	Amountatyearbeginning
Accountspayable	HengmeiOptoelectronicsCo.,Ltd	-	170,977.53
Otherpayable	YehuiInternationalCo.,Ltd.	1,124,656.60	1,124,656.60
Otherpayable	ShenzhenChanglianfaPrinting&dyeingCo.,Ltd.	2,023,699.95	2,023,699.95
Otherpayable	ShenzhenGuanhuaPrinting&dyeingCo.,Ltd.	3,806,454.17	3,806,454.17
Otherpayable	ShenzhenXinfangKnittingCo.,Ltd.	244,789.85	244,789.85
Otherpayable	ShenzhenInvestmentHoldingsCo.,Ltd	643,987.04	-

XIII.Commitmentsandcontingencies

1.Importantcommitments

(1)Capitalcommitment

InRMB

Items	Amountattheendofthisyear	Amountattheendoflastyear
Contractedbutnotrecognizedinthefinancialstatements
Commitmenttopurchaseandbuildlong-termassets	3,761,094.00

2.Contingencies

In2022,litigationdisputesbetweentheCompanyanditscontrollingsubsidiaryShengboOptoelectronicsanditsnon-controllingshareholder,HangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership)(hereinafterreferredtoas"JinhangFund"),includingtheshareholder'srighttoknow,thedissolutionofShengboOptoelectronics,andtheconfirmationoftheeffectivenessoftheresolutionofShengboOptoelectronics,wereheardinthePingshanDistrictPeople'sCourtofShenzhenCity,GuangdongProvince.

TheCompanybelievesthattheabovelitigationmatterswerecausedbydifferencesanddisputesbetweentheshareholdersofShengboOptoelectronicsandthefailuretoreachanagreement,whichdidnotsignificantlyaffectthefinancialsituationandproductionandoperationofShengboOptoelectronics.AsofDecember31,2022,theCompanyhasnopendinglitigation,externalguarantees,andothercontingenciesthatshouldbedisclosedbeyondtheabove.XIV.Mattersafterthebalancesheetdate

1.Profitdistributionafterthebalancesheetdate

深圳市纺织(集团)股份有限公司2022年年度报告全文

OnApril1,2023,thecompanyheldaboardmeetingandapprovedthe2022profitdistributionplan.ThecompanyplanstodistributeacashdividendofRMB0.6(taxinclusive)per10sharestoallshareholdersbasedonthetotalcapitalstockof506521849sharesasofDecember31,2022,withatotalcashdividendofRMB30391310.94(taxinclusive).TheprofitdistributionplanisyettobeapprovedbytheCompany'sshareholders'meeting.

InRMB

Items	Amount
Profitsordividendstobedistributed	30,391,310.94
Profitsordividendsdeclaredafterdeliberationandapproval	30,391,310.94

XV.Otherimportantmatters

1.Segmentinformation

(1)Determinationbasisandaccountingpolicyofreportingsegment

Accordingtothecompany'sinternalorganizationalstructure,managementrequirements,andinternalreportingsystem,thecompany'sbusinessisdividedintothreeoperatingsegments,andthecompany'smanagementregularlyevaluatestheoperatingresultsofthesesegmentstodeterminetheallocationofresourcesandevaluateperformance.Onthebasisofoperatingsegments,thecompanyhasdeterminedthefollowingthreereportingsegments:polarizerbusiness,propertyleasingbusiness,andtextilebusiness.

Segmentreportinginformationisdisclosedinaccordancewiththeaccountingpoliciesandmeasurementstandardsadoptedbyeachsegmentwhenreportingtothemanagement,andthesemeasurementbasesareconsistentwiththeaccountingandmeasurementbasesusedinthepreparationoffinancialstatements.

(2)Financialinformationofreportingsegment

InRMB

Thisyearortheendofthisyear	Polarizer	Propertyleasing	Textile	Offset	Total
Operatingincome:
Externaltransactionincome	2,728,009,332.54	81,731,913.50	28,247,018.32	-	2,837,988,264.36
Inter-segmenttransactionincome	-	4,709,369.95	-	(4,709,369.95)	-
Totaloperatingincomeofsegment	2,728,009,332.54	86,441,283.45	28,247,018.32	(4,709,369.95)	2,837,988,264.36
Operatingexpenses(note)	2,527,835,900.31	77,013,737.77	39,239,385.90	(4,360,768.89)	2,639,728,255.09
Operatingprofit	20,266,160.12	30,304,595.91	(12,022,403.47)	(1,715,534.86)	36,832,817.70
Netprofit	91,118,912.03	34,073,314.37	(12,013,091.49)	(1,387,168.59)	111,791,966.32
Totalassetsofsegment	4,355,319,002.77	1,282,812,378.49	37,349,989.80	(58,344,003.16)	5,617,137,367.90
Totalliabilitiesofsegment	1,404,343,189.16	202,684,944.37	29,223,370.78	(50,156,461.83)	1,586,095,042.48

Note:Thisitemincludesoperatingcosts,taxesandsurcharges,administrativeexpenses,researchanddevelopmentexpenses,salesexpenses,andfinancialexpenses.

深圳市纺织(集团)股份有限公司2022年年度报告全文

2.Otherimportanttransactionsandmattersthathaveanimpactoninvestors'decisions

(1)SignificantassetrestructuringOnDecember30,2022,theCompanyheldthe19thmeetingofthe8thBoardofDirectorsanddeliberatedandpassedtheProposalonthePlanforIssuingSharesandPayingCashtoPurchaseAssets,RaisingSupportingFunds,andRelatedPartyTransactions.TheCompanyplanstopurchase100%ofthetotalequityofHengmeiOptoelectronicsCo.,Ltd.heldby17companiessuchasQimeiMaterialsandHaosheng(Danyang)throughissuingsharesandpayingcash.Thecashconsiderationforthistransactionisproposedtobepaidbythecompanywithselfraisedfundssuchasmergerandacquisitionloansandraisedmatchingfunds.Thecompanyplanstoraisematchingfundsthroughnon-publicofferingofsharestonomorethan35qualifiedspecificinvestors.Thetotalamountofraisedmatchingfundsshallnotexceed100%ofthetransactionpricefortheproposedpurchaseofassetsthroughtheissuanceofshares,andthenumberofsharesissuedshallnotexceed30%ofthetotalsharecapitalofthelistedcompanyafterthecompletionofthepurchaseofassetsthroughtheissuanceofshares.

Thistransactionwillnotresultinachangeinthecontrolofthecompany.Beforeandafterthistransaction,theactualcontrollerofthecompanyistheState-ownedAssetsSupervisionandAdministrationCommissionoftheShenzhenMunicipalPeople'sGovernment.Asofthedateofapprovalandissuanceofthisfinancialstatement,thistransactionstillneedstoobtainrelevantapprovalorapproval,filing,andotherprocedures.Theaudit,evaluation,duediligence,andotherworkinvolvedinthistransactionarestillinprogress.Aftertherelevantworkiscompleted,thecompanywillagainconvenetheboardofdirectorstoreviewtherelevantmattersofthistransaction.

(2)PropertiesnotyetdisposedofbyShenzhenXieliAutomobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")

ShenzhenXieli,aSino-foreignjointventureestablishedbytheCompanyandHongKongXieliMaintenanceCompany(hereinafterreferredtoas"HongKongXieli"),wasderegisteredbytheShenzhenMunicipalMarketSupervisionandAdministrationinMarch2020.However,therearestillthreepropertiesunderthenameofShenzhenXielithatneedtobenegotiatedbetweentheshareholdersofbothparties.InJuly2020,thecompanyfiledalawsuittothePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliapprovedbytheShenzhenMarketSupervisionandAdministrationBureau.

InDecember2022,thePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvince,madeafirstinstancejudgmentrevokingtheadministrativeactofcancelingtheregistrationofShenzhenXieli.InJanuary2023,thethirdpersonintheoriginaltrial,HongKongXieli,appealedtotheShenzhenIntermediatePeople'sCourtofGuangdongProvince.Later,duetothefailureofHongKongXielitopaythecaseacceptancefeeinadvanceonschedule,theShenzhenIntermediatePeople'sCourtofGuangdongProvinceissuedanadministrativeruling,rulingthatHongKongXieliwithdrawitsappealprocessingl.XVI.Notesonmainitemsofparentcompany'sfinancialstatements

1.Accountsreceivable

(1)Disclosurebyage

InRMB

Aging	Balanceattheendofthisyear
	Accountsreceivable	Creditlossprovision	Accrualproportion(%)

深圳市纺织(集团)股份有限公司2022年年度报告全文

Within1year	13,871,107.36	713,159.25	5.14
1-2years	2,485,076.00	-	-
Total	16,356,183.36	713,159.25

(2)Classifieddisclosurebycreditlossaccrualmethod

InRMB

Category	Balanceattheendofthisyear
	Bookbalance		Creditlossprovision		Bookvalue
	Amount	Proportion(%)	Amount	Accrualproportion(%)
Creditlossprovisionaccruedbyitem	-	-	-	-	-
Creditlossprovisionaccruedbyportfolio	16,356,183.36	100.00	713,159.25	4.36	15,643,024.11
Total	16,356,183.36	100.00	713,159.25	4.36	15,643,024.11

Accountsreceivableforwhichprovisionforcreditlossesismadebyportfolio:

InRMB

	Balanceattheendofthisyear
	Accountsreceivable	Creditlossprovision	Expectedcreditlossrate(%)
Within1year	13,871,107.36	713,159.25	5.14
1-2years	2,485,076.00	-	-
Total	16,356,183.36	713,159.25

Descriptionofaccountsreceivableforwhichprovisionforcreditlossesismadebyportfolio:

Asapartofthecompany'screditriskmanagement,thecompanyusesanimpairmentmatrixtodeterminetheexpectedcreditlossesofaccountsreceivableformedbypropertyleasingbusinessesbasedontheagingofaccountsreceivable.Thistypeofbusinessinvolvesalargenumberofcustomerswiththesameriskcharacteristics,andaginginformationcanreflectthesolvencyofsuchcustomerswhentheiraccountsreceivablemature.

(3)Creditlossprovisionwithdrawn,recoveredorreversedthisyear

InRMB

Category	Balanceatthebeginningofthisyear	mountofchangethisyear				Balanceattheendofthisyear
		Accrual	Recoveryorreversal	Write-offorcancellation	Otherchanges
Accountsreceivablewithcreditlossprovisionaccruedbyitem	-	-	-	-	-	-
Accountsreceivablewithcreditlossprovisionaccruedbyportfolio	417,679.54	295,479.71	-	-	-	713,159.25
Total	417,679.54	295,479.71	-	-	-	713,159.25

Changesincreditlossprovisionofaccountsreceivable:

InRMB

Items	Expectedcreditlossforthewholeduration
Year-beginningbalance	417,679.54
Accrualthisyear	295,479.71
Reversalthisyear	-
Write-offthisyear	-
Otherchanges	-
Year-endbalance	713,159.25

(4)Noactualwrite-offofaccountsreceivablethisyear.

(5)Topfiveunitsoftheyear-endbalanceofaccountsreceivablecollectedbythedefaultingparty

InRMB

Unitname

Bookbalanceatthe

Proportionoftotal

Year-endbalanceof

深圳市纺织(集团)股份有限公司2022年年度报告全文

	endofthisyear	accountsreceivable(%)	creditlossprovision
TotalaccountsreceivableofthetopfivebalancesonDecember31,2022	15,404,631.71	94.18	709,106.85

(6)Therearenoaccountsreceivablethathavebeenderecognizedduetothetransferoffinancialassetsthisyear.

2.Otherreceivable

InRMB

Items	Closingbalance	Openingbalance
Otheraccountsreceivable	14,132,756.62	14,383,631.68
Total	14,132,756.62	14,383,631.68

(1)Disclosurebyaging

InRMB

Aging	Balanceattheendofthisyear
	Otherreceivables	Creditlossprovision	Accrualproportion(%)
Within1year	3,408,892.46	59,301.12	1.74
1-2years	10,707,995.02	3,018.92	0.03
2-3years	-	-	-
Over3years	15,279,395.10	15,201,205.92	99.49
Total	29,396,282.58	15,263,525.96

(2)Disclosurebypaymentnature

InRMB

Paymentnature	Bookbalanceattheendofthisyear	Bookbalanceattheendoflastyear
Depositandsecuritydeposit	10,000.00	10,000.00
Externalunittransactions	15,349,339.97	15,349,339.97
Relatedpartytransactionswithintheconsolidationscope	12,980,241.09	14,475,600.00
Others	1,056,701.52	1,047,702.42
Total	29,396,282.58	30,882,642.39

(3)Accrualofcreditlossprovision

InRMB

Stage	Year-endamount
	Expectedaveragelossrate(%)	Bookbalance	Lossprovision	Bookvalue
Otherreceivablesforwhichcreditlossprovisionismadeaccordingtothecombinationofcreditriskcharacteristics	51.92	29,396,282.58	15,263,525.96	14,132,756.62

(4)Changesincreditlossprovisionofotherreceivables:

InRMB

Creditlossprovision	FirststageExpectedcreditlossinnext12months	SecondstageExpectedcreditlossforthewholeduration(nocreditimpairment)	ThirdstageExpectedcreditlossforthewholeduration(creditimpairmenthasoccurred)	Total
Balanceasat1Jan.2022	1,387,764.39	-	15,111,246.32	16,499,010.71

深圳市纺织(集团)股份有限公司2022年年度报告全文

BookbalanceofotheraccountreceivableinCurrentYearasat1Jan.2022
--Transfertothesecondstage	(1,115.91)	1,115.91	-	-
--Transfertothethirdstage	-	-	-	-
--Reversaltothesecondstage	-	-	-	-
--Reversaltothefirststage	-	-	-	-
ProvisioninCurrentYear	-	1,903.01	89,959.60	91,862.61
ReversalinCurrentYear	(1,327,347.36)	-	-	(1,327,347.36)
ConversioninCurrentYear	-	-	-	-
WriteoffinCurrentYear	-	-	-	-
Otherchange	-	-	-	-
Balanceasat31Dec.2022	59,301.12	3,018.92	15,201,205.92	15,263,525.96

(5)Otherreceivableswithnoactualwrite-offthisyear

(6)Topfivecompanieswithyear-endbalanceofotherreceivablescollectedbythedefaultingparty

InRMB

Unitname	Paymentnature	Year-endbalanceofotherreceivables	Aging	Proportionoftotalyear-endbalanceofotherreceivables(%)	Year-endbalanceofcreditlossprovision
TotalotherreceivablesofthetopfivebalancesonDecember31,2022	Currentpaymentreceivablebetweencompaniesandinternalcurrentpayment	15,899,759.97	Within1year,Over3years	54.09	14,858,609.97

3.Long-termequityinvestment

InRMB

Items	Closingbalance			Openingbalance
	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Investmentsinsubsidiaries	1,974,532,127.39	16,582,629.30	1,957,949,498.09	1,972,630,835.39	16,582,629.30	1,956,048,206.09
Investmentsinjointventures	129,506,271.76	-	129,506,271.76	128,214,225.54	-	128,214,225.54
Investmentsinassociatescompany	4,975,563.98	-	4,975,563.98	4,808,100.23	-	4,808,100.23
Total	2,109,013,963.13	16,582,629.30	2,092,431,333.83	2,105,653,161.16	16,582,629.30	2,089,070,531.86

（1）Investmenttothesubsidiary

InRMB

深圳市纺织(集团)股份有限公司2022年年度报告全文

Name	Balanceatthebeginningofthisyear	Addinvestment	Decreasedinvestment	Balanceattheendofthisyear	Withdrawnimpairmentprovision	Closingbalanceofimpairmentprovision
SAPOPhotoelectric	1,924,663,070.03	-	-	1,924,663,070.03	-	14,415,288.09
ShenzhenLisiIndustrialDevelopmentCo.,Ltd.	8,073,388.25	-	-	8,073,388.25	-	-
ShenzhenBeautyCenturyGarmentCo.,Ltd.	16,864,215.55	1,901,292.00	-	18,765,507.55	-	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	1,972,630,835.39	1,901,292.00	-	1,974,532,127.39	-	16,582,629.30

（2）Investmenttojointventuresandassociatedenterprises

InRMB

Name	Openingbalance	Increase/decreaseinreportingperiod								Closingbalance	Closingbalanceofimpairmentprovision
		Addinvestment			Adjustmentofothercomprehensiveincome	Otherequitychanges	Declarationofcashdividendsorprofit	Withdrawnimpairmentprovision	Other
I.Jointventures
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.	128,214,225.54	1.00	-	1,292,045.22	-	-	-	-	-	129,506,271.76	-
Subtotal	128,214,225.54	1.00	-	1,292,045.22	-	-	-	-	-	129,506,271.76	-
II.Associatedenterprises
ShenzhenChanglianfaPrintinganddyeingCompany	2,972,202.97	-	-	133,593.58	-	-	-	-	-	3,105,796.55	-
YehuiInternationalCo.,Ltd.	1,835,897.26	-	-	(117,999.65)	151,869.82	-	-	-	-	1,869,767.43	-
Subtotal	4,808,100.23	-	-	15,593.93	151,869.82	-	-	-	-	4,975,563.98	-
Total	133,022,325.77	1.00	-	1,307,639.15	151,869.82	-	-	-	-	134,481,835.74	-

深圳市纺织(集团)股份有限公司2022年年度报告全文

4.BusinessincomeandBusinesscost

(1）BusinessincomeandBusinesscost

InRMB

Items	Amountofcurrentperiod		Amountofpreviousperiod
	Businessincome	Businesscost	Businessincome	Businesscost
IncomefromMainBusiness	56,046,883.88	9,544,956.96	74,272,555.42	7,660,814.11
OtherBusinessincome	-	-	3,887,130.77	3,887,130.77
Total	56,046,883.88	9,544,956.96	78,159,686.19	11,547,944.88

(2)Mainbusinessincomeandmainbusinesscostclassifiedbyproduct

InRMB

Product	Amountincurredthisyear		Amountincurredlastyear
	Mainbusinessincome	Mainbusinesscost	Mainbusinessincome	Mainbusinesscost
Propertyleasing	56,046,883.88	9,544,956.96	74,272,555.42	7,660,814.11

(3)Mainbusinessincomeandmainbusinesscostclassifiedbyarea

InRMB

Area	Amountincurredthisyear		Amountincurredlastyear
	Mainbusinessincome	Mainbusinesscost	Mainbusinessincome	Mainbusinesscost
Domestic	56,046,883.88	9,544,956.96	74,272,555.42	7,660,814.11

5.Investmentincome

InRMB

Items	Amountofcurrentperiod	Amountofpreviousperiod
Incomefromlong-termequityinvestmentmeasuredbyadoptingtheequitymethod	1,307,639.15	33,984.66
Investmentincomefromthedisposaloflong-termequityinvestment	-	20,779.93
Investmentincomeoftradingfinancialassetsduringtheholdingperiod	15,748,625.37	16,344,590.24
Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments	1,599,735.85	1,659,743.65
Other	-	2,350,000.00
Total	18,656,000.37	20,409,098.48

XVII.Supplementinformation

1.Particularsaboutcurrentnon-recurringgainsandloss

√Applicable□NotapplicableAccordingtoChinaSecuritiesRegulatoryCommission'sExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesOfferingSecuritiestothePublic-Non-recurringgainsandlosses(2008),theGroup'snon-recurringgainsandlossesin2022areasfollows:

InRMB

Items	Amount
Non-currentassetdisposalgain/loss	31,264.60
Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)	26,350,210.89
Losses/gainsfromchangesoffairvaluesoccurredinholdingtradingfinancialassetsandtradingfinancialliabilities,andinvestmentincomeobtainingfromthedisposaloftradingfinancialassets,tradingfinancialliabilityandfinancialassetsavailable-for-sale,excludedeffectivehedgingbusinessrelevantwithnormaloperationsoftheCompany	-
Reversaloftheaccountreceivabledepreciationreservessubjecttoseparateimpairmenttest	-
Othernon-businessincomeandexpendituresotherthantheabove	7,516,025.10

深圳市纺织(集团)股份有限公司2022年年度报告全文

Totalnon-recurringgainsandlosses	33,897,500.59
Less:Influencedamountofincometax	5,589,310.62
Netnon-recurringgainsandlosses	28,308,189.97
Influencedamountofminorshareholders’equity(aftertax)	9,147,064.53
Non-recurringgainsorlossesattributabletothecommonshareholdersoftheCompany	19,161,125.44

2.ReturnonnetassetandearningspershareThisstatementofreturnonnetassetsandearningspershareispreparedbytheGroupinaccordancewiththerelevantprovisionsoftheRuleNo.9forCompilationofInformationDisclosureofPublicOfferingSecuritiesCompanies-CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010)issuedbyChinaSecuritiesRegulatoryCommission.

InRMB

Profitofreportperiod	Weightedaveragereturnsequity(%)	Earningspershare
		Basicearningspershare	Dilutedearningspershare
NetprofitattributabletotheCommonstockshareholdersofCompany.	2.59	0.14	0.14
NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss.	1.91	0.11	0.11

TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd.

April4,2023