Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2023
August 2023
I. Audit reportHas this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial StatementsStatement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
June 30,2023
In RMB
| Items | June 30,2023 | January 1,2023 |
| Current asset： | ||
| Monetary fund | 616,242,142.99 | 991,789,968.19 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 613,554,063.16 | 319,605,448.44 |
| Derivative financial assets | ||
| Note receivable | 56,718,590.38 | 74,619,100.26 |
| Account receivable | 854,907,728.96 | 636,583,469.93 |
| Financing of receivables | 22,863,088.36 | 54,413,796.91 |
| Prepayments | 29,658,881.12 | 18,391,444.67 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 3,393,141.86 | 10,585,975.38 |
| Including：Interest receivable | ||
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 663,102,543.53 | 558,447,648.77 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 49,663,425.99 | 69,535,531.24 |
| Total of current assets | 2,910,103,606.35 | 2,733,972,383.79 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Creditor's right investment | ||
| Other creditor's right investment | ||
| Long-term receivable | ||
| Long term share equity investment | 132,425,526.41 | 134,481,835.74 |
| Other equity instruments investment | 167,678,283.27 | 167,678,283.27 |
| Other non-current financial assets |
| Real estate investment | 121,971,877.49 | 126,315,834.76 |
| Fixed assets | 2,133,290,574.66 | 2,240,221,656.36 |
| Construction in progress | 36,543,522.56 | 38,061,619.60 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | 16,680,916.70 | 15,365,393.88 |
| Intangible assets | 41,720,496.23 | 44,192,571.95 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 3,459,965.93 | 4,470,957.79 |
| Deferred income tax asset | 68,718,492.58 | 69,823,814.29 |
| Other non-current asset | 40,252,375.73 | 42,553,016.47 |
| Total of non-current assets | 2,762,742,031.56 | 2,883,164,984.11 |
| Total of assets | 5,672,845,637.91 | 5,617,137,367.90 |
| Current liabilities | ||
| Short-term loans | 8,000,000.00 | 7,000,000.00 |
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 15,284,993.54 | |
| Account payable | 437,489,166.07 | 327,049,873.70 |
| Advance receipts | 1,164,665.15 | 1,393,344.99 |
| Contract liabilities | 4,975,276.30 | 4,274,109.40 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 57,267,795.28 | 61,166,444.90 |
| Tax payable | 6,033,241.05 | 8,897,312.51 |
| Other account payable | 187,021,282.45 | 197,345,455.37 |
| Including：Interest payable | ||
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 107,490,031.64 | 104,183,438.22 |
| Other current liability | 74,149,887.64 | 92,945,741.78 |
| Total of current liability | 898,876,339.12 | 804,255,720.87 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 557,148,599.34 | 607,421,585.00 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | 10,357,763.45 | 8,628,672.71 |
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 104,754,078.27 | 117,814,796.10 |
| Deferred income tax liability | 48,518,353.82 | 47,974,267.80 |
| Other non-current liabilities | ||
| Total non-current liabilities | 720,778,794.88 | 781,839,321.61 |
| Total of liability | 1,619,655,134.00 | 1,586,095,042.48 |
| Owners’ equity | ||
| Share capital | 506,521,849.00 | 506,521,849.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,961,599,824.63 | 1,961,599,824.63 |
| Less：Shares in stock | ||
| Other comprehensive income | 109,830,200.11 | 109,596,609.31 |
| Special reserve | ||
| Surplus reserves | 100,909,661.32 | 100,909,661.32 |
| Common risk provision | ||
| Retained profit | 176,552,462.98 | 170,636,610.95 |
| Total of owner’s equity belong to the parent company | 2,855,413,998.04 | 2,849,264,555.21 |
| Minority shareholders’ equity | 1,197,776,505.87 | 1,181,777,770.21 |
| Total of owners’ equity | 4,053,190,503.91 | 4,031,042,325.42 |
| Total of liabilities and owners’ equity | 5,672,845,637.91 | 5,617,137,367.90 |
Legal Representative: Yin KefeiPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Huang Min
2.Parent Company Balance Sheet
In RMB
| Items | June 30,2023 | January 1,2023 |
| Current asset： | ||
| Monetary fund | 128,173,826.37 | 426,042,455.28 |
| Transactional financial assets | 593,512,060.11 | 319,605,448.44 |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 18,004,264.58 | 15,643,024.11 |
| Financing of receivables | ||
| Prepayments | 1,406,419.78 | 0.00 |
| Other account receivable | 14,116,168.90 | 14,132,756.62 |
| Including：Interest receivable | ||
| Dividend receivable | ||
| Inventories | 18,993.95 | 26,237.85 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | ||
| Total of current assets | 755,231,733.69 | 775,449,922.30 |
| Non-current assets： | ||
| Creditor's right investment | ||
| Other creditor's right investment | ||
| Long-term receivable | ||
| Long term share equity investment | 2,090,375,024.50 | 2,092,431,333.83 |
| Other equity instruments investment | 151,618,842.39 | 151,618,842.39 |
| Other non-current financial assets | ||
| Real estate investment | 97,823,054.11 | 101,190,712.85 |
| Fixed assets | 10,806,016.97 | 11,346,585.35 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets |
| Intangible assets | 249,098.82 | 308,243.90 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | ||
| Other non-current asset | 25,760,086.27 | 25,997,082.15 |
| Total of non-current assets | 2,376,632,123.06 | 2,382,892,800.47 |
| Total of assets | 3,131,863,856.75 | 3,158,342,722.77 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 411,743.57 | 411,743.57 |
| Advance receipts | 540,673.07 | 691,160.58 |
| Contract liabilities | ||
| Employees’ wage payable | 13,987,952.68 | 18,510,589.33 |
| Tax payable | 3,684,645.18 | 7,121,466.14 |
| Other account payable | 111,540,100.53 | 113,736,371.24 |
| Including：Interest payable | ||
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 130,165,115.03 | 140,471,330.86 |
| Non-current liabilities： | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 250,000.00 | 300,000.00 |
| Deferred income tax liability | 44,905,468.47 | 44,363,868.30 |
| Other non-current liabilities | ||
| Total non-current liabilities | 45,155,468.47 | 44,663,868.30 |
| Total of liability | 175,320,583.50 | 185,135,199.16 |
| Owners’ equity | ||
| Share capital | 506,521,849.00 | 506,521,849.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,577,392,975.96 | 1,577,392,975.96 |
| Less：Shares in stock | ||
| Other comprehensive income | 98,910,619.45 | 98,855,668.75 |
| Special reserve | ||
| Surplus reserves | 100,909,661.32 | 100,909,661.32 |
| Retained profit | 672,808,167.52 | 689,527,368.58 |
| Total of owners’ equity | 2,956,543,273.25 | 2,973,207,523.61 |
| Total of liabilities and owners’ equity | 3,131,863,856.75 | 3,158,342,722.77 |
3.Consolidated Income statement
In RMB
| Items | The first half year of 2023 | The first half year of 2022 |
| I. Income from the key business | 1,490,095,669.55 | 1,445,137,309.09 |
| Incl：Business income | 1,490,095,669.55 | 1,445,137,309.09 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 1,412,490,369.86 | 1,353,000,511.71 |
| Incl：Business cost | 1,286,170,472.71 | 1,242,988,094.06 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 4,397,329.78 | 4,171,362.18 |
| Sales expense | 16,439,473.30 | 18,355,747.39 |
| Administrative expense | 65,299,409.82 | 61,448,188.86 |
| R & D costs | 36,004,188.62 | 34,870,992.66 |
| Financial expenses | 4,179,495.63 | -8,833,873.44 |
| Including：Interest expense | 13,965,081.41 | 15,882,534.27 |
| Interest income | 5,318,571.16 | 773,863.34 |
| Add: Other income | 19,369,307.55 | 10,780,654.48 |
| Investment gain（“-”for loss） | 7,743,354.69 | 11,043,172.52 |
| Incl: investment gains from affiliates | -2,111,260.03 | 1,658,532.04 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | -8,669,369.85 | -2,985,253.53 |
| Impairment loss of assets | -35,512,897.29 | -42,073,672.20 |
| Assets disposal income | 321.08 | -11,114.72 |
| III. Operational profit（“-”for loss） | 60,536,015.87 | 68,890,583.93 |
| Add ：Non-operational income | 401,387.79 | 1,768,115.05 |
| Less: Non-operating expense | 3,037,581.05 | 213,090.29 |
| IV. Total profit(“-”for loss) | 57,899,822.61 | 70,445,608.69 |
| Less：Income tax expenses | 5,713,017.38 | 340,897.81 |
| V. Net profit | 52,186,805.23 | 70,104,710.88 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 52,186,805.23 | 70,104,710.88 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 36,307,162.97 | 42,433,525.10 |
| 2.Minority shareholders’ equity | 15,879,642.26 | 27,671,185.78 |
| VI. Net after-tax of other comprehensive income | 352,684.20 | 75,756.02 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 233,590.80 | 75,756.02 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net |
| assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | ||
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 233,590.80 | 75,756.02 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | 178,640.10 | |
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4.Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | 54,950.70 | 75,756.02 |
| 7.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | 119,093.40 | |
| VII. Total comprehensive income | 52,539,489.43 | 70,180,466.90 |
| Total comprehensive income attributable to the owner of the parent company | 36,540,753.77 | 42,509,281.12 |
| Total comprehensive income attributable minority shareholders | 15,998,735.66 | 27,671,185.78 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.0717 | 0.0838 |
| (II)Diluted earnings per share | 0.0717 | 0.0838 |
The current business combination under common control, the net profits of the combined party before achievednet profit of RMB 0.00, last period the combined party realized RMB0.00.Legal Representative: Yin KefeiPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Huang Min
4. Income statement of the Parent Company
In RMB
| Items | The first half year of 2023 | The first half year of 2022 |
| I. Income from the key business | 39,239,619.43 | 21,156,669.75 |
| Incl：Business cost | 4,156,707.01 | 5,203,409.57 |
| Business tax and surcharge | 1,518,980.53 | 1,379,026.92 |
| Sales expense | 103,182.40 | 61,120.10 |
| Administrative expense | 24,244,619.96 | 20,247,344.52 |
| R & D expense | ||
| Financial expenses | -1,137,285.05 | -246,370.02 |
| Including：Interest expenses | ||
| Interest income | 1,206,551.01 | 227,023.28 |
| Add：Other income | 103,012.52 | 181,448.97 |
| Investment gain（“-”for loss） | 7,701,351.64 | 11,334,212.84 |
| Including: investment gains from affiliates | -2,111,260.03 | 1,658,532.04 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | -38,616.99 | -106,152.94 |
| Impairment loss of assets |
| Assets disposal income | ||
| II. Operational profit（“-”for loss） | 18,119,161.75 | 5,921,647.53 |
| Add ：Non-operational income | ||
| Less：Non -operational expenses | 263.13 | 100,000.00 |
| III. Total profit(“-”for loss) | 18,118,898.62 | 5,821,647.53 |
| Less：Income tax expenses | 4,446,788.74 | 262,406.66 |
| IV. Net profit | 13,672,109.88 | 5,559,240.87 |
| 1.Net continuing operating profit | 13,672,109.88 | 5,559,240.87 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | 54,950.70 | 75,756.02 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | ||
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| (II)Other comprehensive income that will be reclassified into profit or loss | 54,950.70 | 75,756.02 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4.Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | 54,950.70 | 75,756.02 |
| 7.Other | ||
| VI. Total comprehensive income | 13,727,060.58 | 5,634,996.89 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
| Items | The first half year of 2023 | The first half year of 2022 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,289,316,287.70 | 1,337,065,239.48 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 2,508,619.13 | 2,595,000.19 |
| Other cash received from business operation | 77,994,829.70 | 287,019,693.63 |
| Sub-total of cash inflow | 1,369,819,736.53 | 1,626,679,933.30 |
| Cash paid for purchasing of merchandise and services | 1,119,566,064.13 | 1,225,526,384.08 |
| Net increase of client trade and advance | 0.00 | 0.00 |
| Net increase of savings in central bank and brother company | 0.00 | 0.00 |
| Cash paid for original contract claim | 0.00 | 0.00 |
| Net increase in financial assets held for trading purposes | 0.00 | 0.00 |
| Net increase for Outgoing call loan | 0.00 | 0.00 |
| Cash paid for interest, processing fee and commission | 0.00 | 0.00 |
| Cash paid to staffs or paid for staffs | 132,029,182.07 | 132,733,244.30 |
| Taxes paid | 25,728,838.24 | 139,777,733.09 |
| Other cash paid for business activities | 78,092,678.49 | 49,204,337.24 |
| Sub-total of cash outflow from business activities | 1,355,416,762.93 | 1,547,241,698.71 |
| Net cash generated from /used in operating activities | 14,402,973.60 | 79,438,234.59 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 1,456,000.00 | 2,636,054.80 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 7,050.00 | 2,776.70 |
| Net cash received from disposal of subsidiaries or other operational units | 0.00 | 0.00 |
| Other investment-related cash received | 195,000,000.00 | 635,000,000.00 |
| Sub-total of cash inflow due to investment activities | 196,463,050.00 | 637,638,831.50 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 13,286,475.07 | 31,252,419.31 |
| Cash paid as investment | 0.00 | 0.00 |
| Net increase of loan against pledge | 0.00 | 0.00 |
| Net cash received from subsidiaries and other operational units | 0.00 | 0.00 |
| Other cash paid for investment activities | 631,537,000.00 | 650,000,001.00 |
| Sub-total of cash outflow due to investment activities | 644,823,475.07 | 681,252,420.31 |
| Net cash flow generated by investment | -448,360,425.07 | -43,613,588.81 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 3,000,000.00 | 50,572,000.00 |
| Other financing –related cash received | 0.00 | 0.00 |
| Sub-total of cash inflow from financing activities | 3,000,000.00 | 50,572,000.00 |
| Cash to repay debts | 49,284,364.34 | 0.00 |
| Cash paid as dividend, profit, or interests | 44,088,760.65 | 40,857,882.81 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | 0.00 | 0.00 |
| Other cash paid for financing activities | 4,141,770.57 | 0.00 |
| Sub-total of cash outflow due to financing activities | 97,514,895.56 | 40,857,882.81 |
| Net cash flow generated by financing | -94,514,895.56 | 9,714,117.19 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -318,751.44 | 713,784.26 |
| V.Net increase of cash and cash equivalents | -528,791,098.47 | 46,252,547.23 |
| Add: balance of cash and cash equivalents at the beginning of term | 874,474,834.46 | 302,408,433.72 |
| VI ..Balance of cash and cash equivalents at the end of term | 345,683,735.99 | 348,660,980.95 |
6. Cash Flow Statement of the Parent Company
In RMB
| Items | The first half year of 2023 | The first half year of 2022 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 39,612,023.57 | 30,439,993.40 |
| Tax returned | 1,636,664.57 | 200,005.60 |
| Other cash received from business operation | 1,679,622.51 | 8,775,816.77 |
| Sub-total of cash inflow | 42,928,310.65 | 39,415,815.77 |
| Cash paid for purchasing of merchandise and services | 6,111,142.09 | 5,066,002.25 |
| Cash paid to staffs or paid for staffs | 22,248,006.25 | 16,859,518.32 |
| Taxes paid | 12,755,344.10 | 3,475,718.60 |
| Other cash paid for business activities | 3,654,514.20 | 9,214,911.23 |
| Sub-total of cash outflow from business activities | 44,769,006.64 | 34,616,150.40 |
| Net cash generated from /used in operating activities | -1,840,695.99 | 4,799,665.37 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 0.00 | 0.00 |
| Cash received as investment gains | 1,456,000.00 | 2,636,054.80 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 0.00 | 0.00 |
| Net cash received from disposal of subsidiaries or other operational units | 0.00 | 0.00 |
| Other investment-related cash received | 135,000,000.00 | 635,000,000.00 |
| Sub-total of cash inflow due to investment activities | 136,456,000.00 | 637,636,054.80 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 512,293.90 | 238,180.00 |
| Cash paid as investment | 0.00 | 0.00 |
| Net cash received from subsidiaries and other operational units | 0.00 | |
| Other cash paid for investment activities | 401,537,000.00 | 650,000,001.00 |
| Sub-total of cash outflow due to investment activities | 402,049,293.90 | 650,238,181.00 |
| Net cash flow generated by investment | -265,593,293.90 | -12,602,126.20 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | ||
| Cash to repay debts | ||
| Cash paid as dividend, profit, or interests | 30,406,699.21 | 25,326,092.45 |
| Other cash paid for financing activities | 0.00 | 0.00 |
| Sub-total of cash outflow due to financing activities | 30,406,699.21 | 25,326,092.45 |
| Net cash flow generated by financing | -30,406,699.21 | -25,326,092.45 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -27,939.81 | 0.00 |
| V.Net increase of cash and cash equivalents | -297,868,628.91 | -33,128,553.28 |
| Add: balance of cash and cash equivalents at the beginning of term | 310,322,528.19 | 130,236,340.98 |
| VI ..Balance of cash and cash equivalents at the end of term | 12,453,899.28 | 97,107,787.70 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | The first half year of 2023 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable | Other | |||||||||||||
| debt | |||||||||||||||
| I .Balance at the end of last year | 506,521,849.00 | 1,961,599,824.63 | 109,596,609.31 | 100,909,661.32 | 170,636,610.95 | 2,849,264,555.21 | 1,181,777,770.21 | 4,031,042,325.42 | |||||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of current year | 506,521,849.00 | 1,961,599,824.63 | 109,596,609.31 | 100,909,661.32 | 170,636,610.95 | 2,849,264,555.21 | 1,181,777,770.21 | 4,031,042,325.42 | |||||||
| III .Changed in the current year | 233,590.80 | 5,915,852.03 | 6,149,442.83 | 15,998,735.66 | 22,148,178.49 | ||||||||||
| （1）Total comprehensive income | 233,590.80 | 36,307,162.97 | 36,540,753.77 | 15,998,735.66 | 52,539,489.43 | ||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （III）Profit allotment | -30,391,310.94 | -30,391,310.94 | -30,391,310.94 | ||||||||||||
| 1.Providing of surplus reserves |
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -30,391,310.94 | -30,391,310.94 | -30,391,310.94 | ||||||||||||
| 4．Other | |||||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | |||||||||||||||
| IV. Balance at the end of this term | 506,521,849.00 | 1,961,599,824.63 | 109,830,200.11 | 100,909,661.32 | 176,552,462.98 | 2,855,413,998.04 | 1,197,776,505.87 | 4,053,190,503.91 |
Amount in last year
In RMB
| Items | The first half year of 2022 | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shar | Total of own | |||||||||||
| Share | Other Equity instrument | Capital | Less: | Other | Speciali | Surplus | Comm | Retained | Other | Subtotal | |||
| Capital | Preferred stock | Sustainable debt | Other | reserves | Shares in stock | Comprehensive Income | zed reserve | reserves | on risk provision | profit | eholders’ equity | ers’ equity | |||
| I .Balance at the end of last year | 506,521,849.00 | 1,961,599,824.63 | 119,682,119.05 | 98,245,845.47 | 130,746,251.74 | 2,816,795,889.89 | 1,147,033,357.18 | 3,963,829,247.07 | |||||||
| Add: Change of accounting policy | 0.00 | ||||||||||||||
| Correcting of previous errors | 0.00 | ||||||||||||||
| Merger of entities under common control | 0.00 | ||||||||||||||
| Other | 0.00 | ||||||||||||||
| II.Balance at the beginning of current year | 506,521,849.00 | 1,961,599,824.63 | 119,682,119.05 | 98,245,845.47 | 130,746,251.74 | 2,816,795,889.89 | 1,147,033,357.18 | 3,963,829,247.07 | |||||||
| III .Changed in the current year | 75,756.02 | 17,107,432.65 | 17,183,188.67 | 27,671,185.78 | 44,854,374.45 | ||||||||||
| （1）Total comprehensive income | 75,756.02 | 42,433,525.10 | 42,509,281.12 | 27,671,185.78 | 70,180,466.90 | ||||||||||
| （II）Investment or decreasing of capital by owners | 0.00 | ||||||||||||||
| 1．Ordinary Shares invested by shareholders | 0.00 | ||||||||||||||
| 2．Holders of other equity instruments invested capital | 0.00 | ||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | 0.00 | ||||||||||||||
| 4．Other | 0.00 | ||||||||||||||
| （III）Profit allotment | -25,326,092.45 | -25,326,092.45 | -25,326,092.45 |
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -25,326,092.45 | -25,326,092.45 | -25,326,092.45 | ||||||||||||
| 4．Other | 0.00 | ||||||||||||||
| (IV) Internal transferring of owners’ equity | 0.00 | ||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | 0.00 | ||||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | 0.00 | ||||||||||||||
| 3．Making up losses by surplus reserves. | 0.00 | ||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | 0.00 | ||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | 0.00 | ||||||||||||||
| 6．Other | 0.00 | ||||||||||||||
| (V). Special reserves | 0.00 | ||||||||||||||
| 1. Provided this year | 0.00 | ||||||||||||||
| 2．Used this term | 0.00 | ||||||||||||||
| （VI）Other | 0.00 | ||||||||||||||
| IV. Balance at the end of this term | 506,521,849.00 | 1,961,599,824.63 | 119,757,875.07 | 98,245,845.47 | 147,853,684.39 | 2,833,979,078.56 | 1,174,704,542.96 | 4,008,683,621.52 |
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | The first half year of 2023 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 506,521,849.00 | 1,577,392,975.96 | 98,855,668.75 | 100,909,661.32 | 689,527,368.58 | 2,973,207,523.61 | ||||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of current year | 506,521,849.00 | 1,577,392,975.96 | 98,855,668.75 | 100,909,661.32 | 689,527,368.58 | 2,973,207,523.61 | ||||||
| III .Changed in the current year | 54,950.70 | -16,719,201.06 | -16,664,250.36 | |||||||||
| （I）Total comprehensive income | 54,950.70 | 13,672,109.88 | 13,727,060.58 | |||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -30,391,310. | -30,391,310. | ||||||||||
| 94 | 94 | |||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | -30,391,310.94 | -30,391,310.94 | ||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this term | 506,521,849.00 | 1,577,392,975.96 | 98,910,619.45 | 100,909,661.32 | 672,808,167.52 | 2,956,543,273.25 |
Amount in last year
In RMB
| Items | The first half year of 2022 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable | Other | ||||||||||
| debt | ||||||||||||
| I.Balance at the end of last year | 506,521,849.00 | 1,577,392,975.96 | 108,762,538.39 | 98,245,845.47 | 690,879,118.40 | 2,981,802,327.22 | ||||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of current year | 506,521,849.00 | 1,577,392,975.96 | 108,762,538.39 | 98,245,845.47 | 690,879,118.40 | 2,981,802,327.22 | ||||||
| III. Changed in the current year | 75,756.02 | -19,766,851.58 | -19,691,095.56 | |||||||||
| （I）Total comprehensive income | 75,756.02 | 5,559,240.87 | 5,634,996.89 | |||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -25,326,092.45 | -25,326,092.45 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | -25,326,092.45 | -25,326,092.45 | ||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring |
| of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this term | 506,521,849.00 | 1,577,392,975.96 | 108,838,294.41 | 98,245,845.47 | 671,112,266.82 | 2,962,111,231.66 |
III. Basic Information of the Company
Shenzhen Textile (Holdings) Co., Ltd (hereinafter referred to as "the Company") is a company limited byshares registered in Guangdong Province, formerly known as Shenzhen Textile Industry Company andestablished in 1984. The Company was listed on the Shenzhen Stock Exchange in August 1994. The Companypublicly issued RMB ordinary shares (A shares) and domestic listed foreign capital shares (B shares) to thedomestic and foreign public respectively and listed them for trading.Headquartered in Shenzhen, Guangdong Province, the main business of the Company and its subsidiaries(hereinafter referred to as "the Group") includes the research and development, production and marketing ofpolarizers for liquid crystal display, as well as property management business mainly located in the prosperouscommercial area of Shenzhen and textile and garment business.Details of the scope of the consolidated financial statement for the year are set out in the Note (X)9,"Interests in other entities". Changes in the scope of the consolidated financial statement for the year are setout in Note (X)8, "Changes in the Scope of Consolidation".
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprisespromulgated by the Ministry of Finance and its application guidelines, interpretations and other relevantprovisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, theCompany also disclosed relevant financial information in accordance with the Rules No.15 for the InformationDisclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions onFinancial Report (revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuous operation
The Group evaluated its ability to continue as a going concern for the 12 months from 31 December 2022and found no matters or circumstances that raised significant doubts about its ability to continue as a goingconcern. Accordingly, the present financial report has been prepared on the basis of going concern assumptions.
(3) Bookkeeping basis and pricing principle
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which aremeasured at fair value, the financial report uses the historical cost as the measurement basis. If the asset isimpaired, the corresponding impairment provision will be made in accordance with the relevant regulations.
Under historical cost measurement, an asset is measured at the fair value of the amount of cash or cashequivalents paid or the consideration paid at the time of acquisition. Liabilities are measured by the amount ofmoney or assets actually received as a result of the present obligation is assumed, or the contractual amount ofthe present obligation is incurred, or the amount of cash or cash equivalents expected to be paid in the ordinarycourse of life to repay the liability.
Fair value is the price that market participants shall have to receive for the sale of an asset or shall to payfor a transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair valueis observable or estimated using valuation techniques, the fair value measured and disclosed in this financialreport is determined on that basis.
For financial assets that use the transaction price as the fair value at the time of initial recognition, and avaluation technique involving unobservable inputs is used in subsequent measures of fair value, the valuationtechnique is corrected during the valuation process so that the initial recognition result determined by thevaluation technique is equal to the transaction price.
Fair value measurement is divided into three levels as to the observability of fair value inputs, and theimportance of such inputs to fair value measurement as a value inputs, and the importance of such inputs to fairvalue measurement as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that canbe obtained at the measurement date.
The second-level input value is the input value that is directly or indirectly observable for the underlyingasset or liability in addition to the first-level input.
The third level input value is the unobservable input value of the underlying asset or liability.V. Important accounting policies and accounting estimates
1.Statement of compliance with accounting standards for business enterprisesThe financial report prepared by the Company complies with the requirements of the AccountingStandards for Business Enterprises and truly and completely reflects the consolidated and parent financialposition of the Company as of June 30, 2023 and the consolidated and parent operating results, the consolidatedand parent shareholders' equity changes and the consolidated and parent cash flows for the first half 2023.
2. Accounting period
The Group's fiscal year is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
3.Business cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to therealization of cash or cash equivalents. The Company's business cycle is 12 months.
4. The base currency of account
RMB is the currency in the main economic environment in which the Company and its domesticsubsidiaries operate, and the Company and its domestic subsidiaries use RMB as the base accounting currency.The overseas subsidiaries of the Company determine RMB as their base accounting currency according to thecurrency of the main economic environment in which they operate. The currency used by the Company in thepreparation of this financial report is RMB.
5. Accounting treatment of business combinations under the common control and under non-common control
Business combinations are divided into business combinations under common control and businesscombinations under non-common control.
（1） Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple partiesbefore and after the merger, and the control is not temporary, therefore it is a business combination under thecommon control.
Assets and liabilities acquired in a business combination are measured at their carrying value on theconsolidated party at the date of consolidation. The difference between the carrying amount of net assetsacquired by the merging party and the carrying amount of the merger consideration paid is adjusted for theequity premium in the capital reserve or for retained earnings if the equity premium is insufficient to be offset.
Direct carrying value on the consolidated party at the date of consolidation. The difference between thecarrying amount of net assets acquired by the merging party and the carrying amount of the mergerconsideration paid is adjusted for the equity premium in the capital reserve or for retained earnings if the equitypremium is insufficient to be offset.
Direct expenses incurred in connection with the business combination are recognized in profit or loss forthe period when incurred.
（2）Business combinations and goodwill under non-common control
The enterprises participating in a merger are not ultimately controlled by the same party or multiple partiesbefore and after the merger, therefore it is a business combination under non-common control.
Consolidation cost is the fair value of assets paid, liabilities incurred or assumed and equity instrumentsissued to gain control of the acquired party by the purchaser. Intermediary fees such as auditing, legal services,valuation consulting and other related management expenses incurred by the purchaser for the businesscombination are recognized in the profit or loss of the period when incurred.The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for recognitionacquired by the purchaser in the merger are measured at fair value at the date of purchase.The cost of the merger is greater than the difference in the fair value share of the acquiree's identifiable netassets acquired in the merger, which is recognized as goodwill as an asset and initially measured at cost. If thecost of the merger is less than the fair value share of the acquiree's identifiable net assets acquired in the merger,the fair value of the acquired acquiree's identifiable assets, liabilities and contingent liabilities and themeasurement of the cost of the merger are first reviewed, and if the consolidated cost after review is still lessthan the fair value share of the acquiree's identifiable net assets share acquired in the merger, which shall beincluded in profit or loss for the period occurred.Goodwill resulting from business combinations is presented separately in the consolidated financialstatement and measured at cost less accumulated impairment provisions.
6. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis. Controlmeans that the investor has power over the investee, enjoys variable returns by participating in the investee'srelated activities, and has the ability to use its power over the investee to influence the amount of its return. TheGroup will reassess once changes in the relevant facts and circumstances result in a change in the relevantelements covered by the above definition of control.
The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates whenthe Group loses control of the subsidiary.
For subsidiaries disposed of by the Group, the results of operations and cash flows prior to the date ofdisposal (the date of loss of control) have been duly included in the consolidated statement of income and theconsolidated statement of cash flows.
For subsidiaries acquired through a business combination under non-common control, the results ofoperations and cash flows from the date of purchase (the date of acquisition of control) have been appropriatelyincluded in the consolidated statement of income and the consolidated statement of cash flows.
For subsidiaries acquired through a business combination under common control, regardless of when thebusiness combination takes place in any point of the reporting period, the subsidiary shall be deemed to beincluded in the scope of the Group's consolidation on the date on which the subsidiary is under the control ofthe ultimate controlling party, the results of operations and cash flows from the beginning of the earliest periodof the reporting period are duly included in the consolidated income statement and the consolidated statement ofcash flows.
The principal accounting policies and the accounting periods adopted by the subsidiaries are determined inaccordance with the accounting policies and accounting periods uniformly prescribed by the Company.
The impact of the Company's internal transactions with its subsidiaries and between subsidiaries on theconsolidated financial statement is offset at the time of consolidation.
The shares of the subsidiary's ownership interest that are not part of the parent company are shown asminority interests under the item "minority interests" under the item on shareholders' equityin the consolidatedbalance sheet. The shares of the subsidiary's net profit or loss for the period that belongs to minority interests isshown under the item "minority profit and loss" under the net profit item in the consolidated statement ofincome.The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share ofownership interest enjoyed in the beginning of the period, and its balance is still offset by the minorityshareholders’ equity.For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investmentwithout losing control of the subsidiary, it’s accounted as equity transactions, and the carrying amount of theowner's interest and minority interest attributable to the parent company is adjusted to reflect their change in therelevant interest in the subsidiary. The difference between the adjustment of minority interests and the fair valueof the consideration paid/received is adjusted to the capital reserve, and if the capital reserve is insufficient tooffset it, then it’s adjusted to the retained earnings.
7. Classification of joint venture arrangement classifications and accounting treatment methods forjoint operations
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures, which aredetermined in accordance with the rights and obligations of the joint venture parties in the joint venturearrangement by taking into account factors such as the structure, legal form and contractual terms of thearrangement. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy theassets related to the arrangement and bear the liabilities related to the arrangement. The jointly-operated is ajoint arrangement in which the joint venture party has rights only to the net assets of the joint arrangement.
The Group's investments in joint ventures are accounted by using the equity method, please see Note (X)5 ,22"Long-term equity investments ".(3) subsequent measurement and profit and loss recognition method 2)Long-term equity investment calculated by the equity method ".
8. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer toinvestments held by the Group for a short period (generally within three months from the date of purchase),highly liquid, easily convertible into a known amount of cash, and with little risk of change in value.
9.Foreign currency transactions and translation of foreign currency statements
（1） Foreign Currency Business
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rateon the date of the transaction, and the exchange rate similar to the spot rate on the date of the transaction isdetermined in a systematic and reasonable manner.
At the balance sheet date, foreign currency monetary items are converted into RMB using the spotexchange rate on that date, and the exchange difference arising from the difference between the spot exchangerate on that date and the spot exchange rate at the time of initial recognition or the day preceding the balance
sheet date, except: (1) the exchange difference of foreign currency special borrowings eligible for capitalizationis capitalized during the capitalization period and included in the cost of the underlying asset; (2) The exchangedifference of hedging instruments for hedging in order to avoid foreign exchange risk is treated according to thehedge accounting method; (3) The exchange difference results from changes in other carrying balances otherthan amortized cost for monetary items classified as measured at fair value and changes in which are includedin other comprehensive income, it shall be recognized as profit or loss for the period.Where the preparation of the consolidated financial statement involves overseas operations, if there areforeign currency monetary items that substantially constitute net investment in overseas operations, theexchange difference arising from exchange rate changes is included in the "foreign currency statementtranslation difference" item included in other comprehensive income; When disposing of overseas operations, itis included in the profit or loss of the period of disposal.Foreign currency non-monetary items measured at historical cost are still measured at the base currencyamount translated at the spot exchange rate on the date of the transaction. Foreign currency non-monetary itemsmeasured at fair value are translated using the spot exchange rate on the fair value determination date, and thedifference between the converted base currency amount and the original accounting currency amount is treatedas a change in fair value (including exchange rate changes) and recognized as profit or loss for the period orrecognized as other comprehensive income.
（2）Translation of Foreign Currency Financial Statements
For the purpose of preparing consolidated financial statement, foreign currency financial statements foroverseas operations are converted into RMB statements in the following manner: all assets and liabilities in thebalance sheet are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items areconverted at the spot exchange rate at the time of incurrence; All items in the income statement and itemsreflecting the amount of profit distribution are converted at an exchange rate similar to the spot exchange rateon the date of the transaction; The difference between the converted asset items and the total of liability itemsand shareholders' equity items is recognized as other comprehensive income and included in shareholders'equity.
Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange ratessimilar to the spot exchange rate on the occurrence date of cash flow, and the impact amount of exchange ratechanges on cash and cash equivalents is used as a reconciliation item and is shown separately in the statementof cash flows as "Impact of exchange rate changes on cash and cash equivalents".
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amountsconverted from the prior-year financial statement.
Where the Group losses control of overseas operations due to disposing of all the ownership interests inoverseas operations or the disposal of part of the equity investment or other reasons, the difference in thetranslation of the foreign currency statements in the ownership interests attributable to the parent companyrelated to the overseas operations shown below the items of shareholders' equity in the balance sheet shall betransferred to the profit or loss of the period of disposal.
Where the proportion of equity interests held in overseas operations decreases due to the disposal of part ofthe equity investment or other reasons without lost the control of the overseas operations, the difference in thetranslation of foreign currency statements related to the disposal part of the overseas operations shall beattributed to the minority shareholders' interests and shall not be transferred to the profit or loss of the period.Where disposing of part of the equity of an overseas operation in an associate or a joint venture, the difference
in the translation of foreign currency statements related to the overseas operation shall be transferred to theprofit or loss of the period of disposal according to the proportion of the disposal of the overseas operation.
10.Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financialinstrument contract.
In the case of the purchase or sale of financial assets in the usual manner, it shall recognize the assets to bereceived and the liabilities to be incurred on the transaction date, or derecognize the assets sold on thetransaction date.
Financial assets and financial liabilities are measured at fair value at initial recognition. For financial assetsand financial liabilities measured at fair value and changes in which are recorded in profit or loss for the period,the related transaction costs are recognized directly in profit or loss for the period; For other categories offinancial assets and financial liabilities, the related transaction costs are included in the initial recognitionamount. Where the Group initially recognizes accounts receivable that do not contain a material financingcomponent or do not take into account the financing component in a contract not older than one year inaccordance with No. 14Accounting Standard for Business Enterprises-Revenue (the "Revenue Standard"), theinitial measurement is made at the transaction price as defined by the revenue standard.
The effective interest rate method refers to the method of calculating the amortized cost of financial assetsor financial liabilities and apportioning interest income or interest expense into each accounting period.
The effective interest rate is the interest rate used to discount the estimated future cash flows of a financialasset or financial liability over the expected life of the financial asset to the carrying balance of the financialasset or the amortized cost of the financial liability. In determining the effective interest rate, the expected cashflow is estimated taking into account all contractual terms of the financial asset or financial liability (such asearly repayment, rollover, call option or other similar option, etc.), without taking into account the expectedcredit loss.
The amortized cost of a financial asset or financial liability is the amount initially recognized less theprincipal repaid, plus or minus the accumulated amortization resulting from the amortization of the differencebetween the initial recognition amount and the amount due date using the effective interest rate method, andthen deduct the accumulated provision for losses (for financial assets only).
（1）Classification, recognition and measurement of financial assets
After initial recognition, the Group conducts subsequent measurements of different classes of financialassets at amortized cost, measured at fair value and changes in which are recognized in other comprehensiveincome, or measured at fair value and changes in which are recorded in profit or loss for the period.
The contractual clauses of a financial asset provide that the cash flows generated on a given date are onlythe payment of principal and interest based on the outstanding principal amount, and the Group's businessmodel is aimed for managing the financial asset is to collect contractual cash flows, then the Group classifiesthe financial asset as a financial asset measured at amortized cost. Such financial assets mainly includemonetary funds, notes receivable, accounts receivable and other receivables.
The contractual terms of a financial asset provide that the cash flows generated at a particular date are onlythe payment of principal and interest based on the outstanding principal amount, and the Group's business
model for managing the financial asset is aimed at both the receipt of contractual cash flows and the sale of thefinancial asset, then the financial asset is classified as a financial asset measured at fair value and the changetherein is recognized in other comprehensive income. Such financial assets with a maturity of more than oneyear from the date of acquisition are listed as other debt investments, and if they mature within one year(inclusive) from the balance sheet date, they are shown as non-current assets maturing within one year;Accounts receivable and notes receivable classified as measured at fair value and changes in which arerecognized in other comprehensive income at the time of acquisition are shown in receivables financing, and theother acquired with a maturity of one year (inclusive) are shown in other current assets.At initial recognition, the Group may irrevocably designate investments in non-tradable equity instrumentsother than contingent consideration recognized in business combinations that are under non-common control asfinancial assets measured at fair value and changes in which are recognized in other comprehensive income on asingle financial asset basis. Such financial assets are listed as investments in other equity instruments.Where a financial asset meets any of the following conditions, it indicates that the Group's purpose inholding the financial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.The underlying financial assets were part of a centrally managed portfolio of identifiable financialinstruments at the time of initial recognition and there was objective evidence of an actual pattern of short-termprofits in the recent.The underlying financial asset is a derivative instrument, except for derivatives that meet the definition of afinancial guarantee contract and derivatives that are designated as effective hedging instruments.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the periodinclude financial assets classified as measured at fair value and changes in which are recorded in profit or lossfor the period and financial assets designated as measured at fair value and changes in which are recorded inprofit or loss for the period:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assetsmeasured at fair value and changes in which are included in other comprehensive income are classified asfinancial assets measured at fair value and changes in which are recorded in profit or loss for the period.
At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, theGroup may irrevocably designate financial assets as financial assets measured at fair value and changes inwhich are recorded in profit or loss for the period.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the periodare shown in trading financial assets, and financial assets with maturity of more than one year (or have anindefinite maturity) from the balance sheet date and expected to be held for more than one year is shown asother non-current financial assets1）Financial assets measured at amortized costFinancial assets measured at amortized cost are subsequently measured at amortized cost using the effectiveinterest rate method, and the gains or losses arising from impairment or derecognition are included in profit orloss for the period.The Group recognizes interest income on financial assets measured at amortized cost in accordance with theeffective interest rate method. For financial assets purchased or derived that have incurred credit impairment,
the Group determines interest income based on the amortized cost of the financial asset and the credit-adjustedeffective interest rate from the initial recognition. In addition, the Group determines interest income based onthe carrying balance of financial assets multiplied by the effective interest rate.2）Financial assets measured at fair value and changes in which are recorded in other comprehensive incomeImpairment losses or gains and interest income calculated using the effective interest rate method related tofinancial assets classified as measured at fair value and changes in which are included in other comprehensiveincome are recognized in profit or loss for the period, and except that, changes in the fair value of such financialassets are recognized in other comprehensive income. The amount of the financial asset recognized in profit orloss for each period is equal to the amount that is recognized in profit or loss for each period as if it had beenmeasured at amortized cost. When the financial asset is derecognized, the accumulated gain or loss previouslyrecognized in other comprehensive income is transferred from other comprehensive income and recognized inprofit or loss for the period.Changes in fair value in investments in non-traded equity instruments designated as measured at fair value andthe change in which are recognized in other comprehensive income are recognized in other comprehensiveincome, and when the financial asset is derecognized, the accumulated gain or loss previously recognized inother comprehensive income is transferred from other comprehensive income to retained earnings. During theperiod during which the Group holds the investment in the non-tradable equity instrument, the dividend incomeis recognized and recorded in profit or loss for the period when the Group's right to receive dividends has beenestablished, the economic benefits associated with the dividends are likely to flow into the Group and theamount of the dividends can be reliably measured.3）Financial assets measured at fair value and changes in which are recorded in profit or loss for the periodFinancial assets measured at fair value and changes in which are recorded in profit or loss for the period aresubsequently measured at fair value, and gains or losses resulting from changes in fair value and dividends andinterest income related to the financial asset are recorded in profit or loss for the period.
（2）Impairment of Financial Instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured atamortized cost, financial assets classified as measured at fair value and changes in which are recognized inother comprehensive income, and lease receivables based on expected credit losses.The Group measures the loss provision at an amount equivalent to the expected credit loss over the life ofnotes receivable and accounts receivable formed by transactions regulated by revenue standards that do notcontain a material financing element or do not take into account the financing component of contracts notexceeding one year, as well as operating leases receivable arising from transactions regulated by No.21Accounting Standard for Business Enterprises -Leases.For other financial instruments, the Group assesses the change in the credit risk of the relevant financialinstruments since initial recognition at each balance sheet date, except for financial assets purchased or derivedthat have incurred credit impairment. If the credit risk of the Financial Instrument has increased significantlysince the initial recognition, the Group measures its loss provision by an amount equivalent to the expectedcredit loss over the life of the financial instrument; If the credit risk of the financial instrument does not increasesignificantly since the initial recognition, the Group measures its loss provision by an amount equivalent to theexpected credit loss of the financial instrument in the next 12 months. Increases or reversals of credit lossprovisions are recognized as impairment losses or gains in profit or loss for the period, except for financial
assets classified as measured at fair value and changes in which are recognized in other comprehensive income.For financial assets classified as measured at fair value and the change thereof is recorded in othercomprehensive income, the Group recognizes a credit loss provision in other comprehensive income andincludes impairment losses or gains in profit or loss for the period without reducing the carrying amount of thefinancial asset as shown in the balance sheet.Where the Group has measured a loss provision in the preceding accounting period by an amountequivalent to the expected credit loss over the life of the financial instrument, but the financial instrument is nolonger subject to a significant increase in credit risk since the initial recognition at the period balance sheet date,the Group measures the loss provision for the financial instrument at the period balance sheet date by an amountequivalent to the expected credit loss in the next 12 months, and the resulting reversal amount for loss provisionis recognized as an impairment gain in profit or loss for the period.1）Significant increase in credit riskUsing reasonably and evidence-based forward-looking information available, the Group compares the risk ofdefault on financial instruments at the balance sheet date with the risk of default on the initial recognition dateto determine whether the credit risk of financial instruments has increased significantly since initialrecognition.In assessing whether credit risk has increased significantly, the Group will consider the following factors:
(1) whether the internal price indicators have changed significantly due to changes in credit risk.
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.,stricter contractual terms, additional collateral or higher yields) if the existing financial instrument is derivedor issued as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the samefinancial instrument or similar financial instruments with the same estimated duration. These indicatorsinclude: credit spreads, credit default swap prices for borrowers, the length and extent to which the fair valueof financial assets is less than their amortized cost, and other market information relevant to borrowers (suchas changes in the price of borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument infact or expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) whether there has been an adverse change in business, financial or economic circumstances that isexpected to result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) whether there has been a significant change in the actual or expected operating results of the debtor.
(8) whether the credit risk of other financial instruments issued by the same debtor has increasedsignificantly.
(9) whether there has been a significant adverse change in the regulatory, economic or technicalenvironment in which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debtor in the quality of the guarantee or credit enhancement provided by a third party. These changes are expectedto reduce the economic incentive for the debtor to repay the loan within the term specified in the contract oraffect the probability of default.
(11) whether there has been a significant change in the economic incentive expected to reduce theborrower's repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract, including the waiver oramendment of contractual obligations that may result from the anticipated breach of the contract, the granting ofinterest-free periods, interest rate jumps, requests for additional collateral or guarantees, or other changes to thecontractual framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repaymentbehavior.
(14) Whether the Group's credit management methods for financial instruments have changed.Regardless of whether the credit risk has increased significantly after the above assessment, when thepayment of a financial instrument contract has been overdue for more than (inclusive) 30 days, it indicates thatthe credit risk of the financial instrument has increased significantly.At the balance sheet date, if the Group determines that a financial instrument has only a low credit risk, theGroup assumes that the credit risk of the financial instrument has not increased significantly since its initialrecognition. A financial instrument is considered to have a low credit risk if it has a low risk of default, theborrower's ability to meet its contractual cash flow obligations in the short term is strong, and even if there areadverse changes in the economic situation and operating environment over a longer period of time that do notnecessarily reduce the borrower's performance of its contractual cash obligations.
2）Financial assets that have undergone credit impairmentWhere one or more events occur in which the Group expects to adversely affect the future cash flows of afinancial asset, the financial asset becomes a financial asset that has experienced credit impairment.Evidence that credit impairment of financial assets has occurred includes the following observableinformation:
a) significant financial difficulties of the issuer or debtor;b) Breach of contract by the debtor, such as default or delay in payment of interest or principal;c) The creditor gives the debtor concessions under economic or contractual considerations relating to thedebtor's financial difficulties that would not have been made under any other circumstances;d) The debtor is likely to go bankrupt or undergo other financial restructuring;e) The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
f) Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss hasoccurred.Based on the Group's internal credit risk management, the Group considers an event of default to haveoccurred when the internally advised or externally obtained information indicates that the debtor of thefinancial instrument cannot fully pay creditors including the Group (without regard to any security obtainedby the Group).Notwithstanding the above assessment, if a contract payment for a financial instrument is overdue for morethan 90 days(inclusive), the Group presumes that the financial instrument has defaulted.3）Determination of Expected Credit LossThe Group uses an impairment matrix on a portfolio basis on notes receivable, accounts receivable and otherreceivables to determine credit losses on relevant financial instruments. The Group classifies financialinstruments into different groups based on common risk characteristics. The common credit riskcharacteristics adopted by the Group include: type of financial instrument, credit risk rating, type ofcollateral, date of initial recognition, industry in which the debtor is in, value of collateral relative tofinancial assets, etc.For financial assets and lease receivables, the expected credit loss is the present value of the differencebetween the contractual cash flows due to the Group and the cash flows expected to be collected.The reflection factors of the Group's methodology for measuring expected credit losses on financialinstruments include: an unbiased probability-weighted average amount determined by evaluating a range ofpossible outcomes; the time value of money; reasonable and well-founded information about past events,current conditions, and projections of future economic conditions that can be obtained at the balance sheetdate without unnecessary additional costs or efforts.4）Write-down of Financial AssetsWhere the Group no longer reasonably expects that the contractual cash flows of financial assets will berecovered in whole or in part, the carrying balance of the financial assets will be written down directly. Suchwrite-downs constitute derecognition of the underlying financial assets.
（3）Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right toreceive cash flows from the financial asset is terminated; (2) the financial asset has been transferred andsubstantially all of the risks and rewards in the ownership of the financial asset have been transferred to thetransferring party; (3) the financial asset has been transferred, and although the Group has neither transferrednor retained substantially all of the risks and rewards in the ownership of the financial asset, it has not retainedcontrol over the financial asset.
Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of afinancial asset, and retains control of the financial asset, it will continue to recognize the transferred financialasset to the extent that it continues to be involved in the transferred financial asset and recognize the relevantliabilities accordingly. The Group measures the relevant liabilities as follows:
Where the transferred financial assets are measured at amortized cost, the carrying amount of the relevantliability is equal to the carrying amount of the financial asset that continues to be involved in the transferred lessthe amortized cost of the rights retained by the Group (if the Group retains the relevant rights as a result of thetransfer of financial assets) plus the amortized cost of the obligations assumed by the group (if the group hasassumed the relevant obligations as a result of the transfer of financial assets), and the relevant liabilities are notdesignated as financial liabilities measured at fair value and changes in which are recorded in profit or loss forthe period.
Where the transferred financial assets are measured at fair value, the carrying amount of the relevantliabilities is equal to the carrying amount of the financial assets that continue to be involved in the transferredfinancial assets less the fair value of the rights retained by the Group (if the Group retains the relevant rights asa result of the transfer of financial assets) plus the fair value of the obligations assumed by the Group (if theGroup has assumed such obligations as a result of the transfer of financial assets), the fair value of such rightsand obligations is the fair value when measured on an independent basis.
If the overall transfer of financial assets satisfies the conditions for derecognition, the difference betweenthe carrying amount of the transferred financial assets at the derecognition date and the consideration receivedas a result of the transfer of the financial and the sum of the amount corresponding to the derecognition portionof the accumulated fair value change originally included in other comprehensive income is included in profit orloss for the period. If the Group transfers financial assets that are investments in non-traded equity instrumentsdesignated as measured at fair value and changes in which are recognized in other comprehensive income, theaccrued gains or losses previously recognized in other comprehensive income are transferred from othercomprehensive income and recorded in retained earnings.
If a partial transfer of financial assets satisfies the conditions for derecognition, the carrying amount of thefinancial assets as a whole before the transfer is apportioned between the derecognized portion and thecontinuing recognition portion at the respective relative fair value on the transfer date, and the differencebetween the sum of the amount of the consideration received in the derecognized portion and the amountcorresponding to the derecognized portion of the accumulated fair value change originally included in othercomprehensive income and the carrying amount of the derecognized portion at the derecognition date isincluded in profit or loss for the current period. If the Group transfers financial assets that are investments innon-traded equity instruments designated as measured at fair value and changes in which are recognized inother comprehensive income, the accrued gains or losses previously recognized in other comprehensive incomeare transferred from other comprehensive income and recorded in retained earnings.
If the conditions for derecognition are not met for the overall transfer of financial assets, the Groupcontinues to recognize the transferred financial assets as a whole and recognizes the consideration received as aliability.
（4）Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equityinstruments at initial recognition according to the contract terms of the financial instruments issued and theireconomic essence, not just in legal form, combined with the definitions of financial liabilities and equityinstruments.
1) Classification, recognition and measurement of financial liabilities
Financial liabilities are divided into financial liabilities measured at fair value and whose changes areincluded in current profits and losses at initial recognition and other financial liabilities.
① Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and lossesinclude transactional financial liabilities (including derivatives belonging to financial liabilities) andfinancial liabilities designated as measured at fair value and whose changes are included in current profitsand losses. Except for derivative financial liabilities which are listed separately, financial liabilitiesmeasured at fair value and whose changes are included in current profits and losses are listed astransactional financial liabilities.Financial liabilities that meet one of the following conditions, indicate that the purpose of the Group'sfinancial liabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralizedmanagement at the initial recognition, and there is objective evidence to show the actual short-term profitmodel in the near future.Related financial liabilities are derivatives. Except for derivatives that meet the definition of financialguarantee contract and derivatives that are designated as effective hedging instruments.The Group can designate financial liabilities that meet one of the following conditions as financial liabilitiesmeasured at fair value and whose changes are included in current profits and losses at initial recognition: (1)The designation can eliminate or significantly reduce accounting mismatch; (2) According to the riskmanagement or investment strategy stated in the formal written documents of the Group, the financialliability portfolio or the portfolio of financial assets and financial liabilities are managed and evaluated onthe basis of fair value, and reported to key management personnel within the Group on this basis; (3)Qualified mixed contracts containing embedded derivatives.Transactional financial liabilities are subsequently measured at fair value, and gains or losses caused bychanges in fair value and dividends or interest expenses related to these financial liabilities are included incurrent profits and losses.For financial liabilities designated as being measured at fair value and whose changes are included in thecurrent profits and losses, the changes in fair value of the financial liabilities caused by changes in theGroup's own credit risk are included in other comprehensive income, and other changes in fair value areincluded in the current profits and losses. When the financial liabilities are derecognized, the accumulatedchange of its fair value caused by the change of their own credit risk previously included in othercomprehensive income is carried forward to retained income. Dividends or interest expenses related tothese financial liabilities are included in the current profits and losses. If the accounting mismatch in profitand loss will be caused or enlarged by handling the impact of the changes in credit risk of these financialliabilities in the above way, the Group will include all the gains or losses of the financial liabilities(including the amount affected by the changes in credit risk) in the current profits and losses.
② Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets that do not meet theconditions for derecognition or continue to be involved in the transferred financial assets, are classified as
financial liabilities measured in amortized cost and subsequently measured in amortized cost. The gains orlosses arising from derecognition or amortization are included in the current profits and losses.If the modification or renegotiation of the contract between the Group and the counterparty does not resultin the termination of the recognition of the financial liabilities that are subsequently measured according toamortized cost, but the cash flow of the contract changes, the Group recalculates the book value of the financialliabilities and records the relevant gains or losses into the current profits and losses. The recalculated bookvalue of such financial liabilities is determined by the Group according to the present value of discountedcontract cash flow that will be renegotiated or modified according to the original actual interest rate of thefinancial liabilities. For all costs or expenses arising from the modification or renegotiation of the contract, theGroup adjusts the book value of the modified financial liabilities and amortizes them within the remaining termof the modified financial liabilities.
2) Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged, the recognition offinancial liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will signan agreement to replace the original financial liabilities by undertaking new financial liabilities, and thecontract terms of the new financial liabilities are substantially different from those of the original financialliabilities, the Group will derecognize the original financial liabilities and recognize the new financialliabilities at the same time.If all or part of the financial liabilities are derecognized, the difference between the book value of thederecognized part and the consideration paid (including the transferred non-cash assets or the new financialliabilities undertaken) will be included in the current profits and losses.
3) Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets afterdeducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equityinstruments by the Group are treated as changes in equity. The Group does not recognize changes in thefair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.The distribution of equity instrument holders by the Group is treated as profit distribution, and the stockdividends paid do not affect the total shareholders' equity.
（5）Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities, andthis legal right is currently enforceable, and the Group plans to settle the financial assets on a net basis or realizethe financial assets and pay off the financial liabilities at the same time, the financial assets and financialliabilities are listed in the balance sheet at the amount after offsetting each other. In addition, financial assetsand financial liabilities are listed separately in the balance sheet and do not offset each other.
11. Notes receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and AccountingEstimates" of "Section 10 Financial Reporting" of this report.
12. Accounts receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and AccountingEstimates" of "Section 10 Financial Reporting" of this report.
13. Receivable financing
For notes receivable classified as at fair value and whose changes are included in other comprehensiveincome, the part with a term of one year (including one year) from the date of acquisition is listed as receivablefinancing; the part with a term of more than one year from the date of acquisition is listed as other creditor'sright investment. See Note (X) 5 "Financial Instruments" for relevant accounting policies.
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and AccountingEstimates" of "Section 10 Financial Reporting" of this report.
15. Inventory
（1）Classification of inventory
The Group's inventory mainly includes raw materials, products in process, finished products and materialsentrusted for processing. Inventory is initially measured at cost, which includes purchasing cost, processing costand other expenses incurred to make inventory reach the current place and use state.
（2）Valuation method of issued inventory
When the inventory is issued, the actual cost of the issued inventory is determined by the weighted meanmethod.
（3）Determination basis of net realizable value of inventory
On the balance sheet date, inventories are measured according to the lower of cost and net realizable value.When the net realizable value is lower than the cost, the inventory depreciation provision is withdrawn.
Net realizable value refers to the estimated selling price of inventory minus the estimated cost, estimatedsales expenses and related taxes and fees at the time of completion in daily activities. When determining the netrealizable value of inventory, it is based on the conclusive evidence obtained, and the purpose of holdinginventory and the influence of events after the balance sheet date are also considered.
Inventory depreciation provision is drawn according to the difference between the cost of a singleinventory item and its net realizable value.
After the inventory depreciation provision is withdrawn, if the influencing factors of previous write-downof inventory value have disappeared, resulting in the net realizable value of inventory being higher than its bookvalue, it will be reversed within the original amount of inventory depreciation provision, and the reversedamount will be included in the current profits and losses.
（4）Inventory system
The inventory system is perpetual inventory system.
（5）Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-off method.
16.Contract assets
None
17.Contract Cost
None
18.Held-for-sale assets
None
19.Creditor's rights investment
None
20.Other Creditor's rights investment
None
21.Long-term account receivable
None
22. Long-term equity investment
（1）Criteria for joint control and important influence
Control means that the investor has the power over the investee, enjoys variable returns by participating inthe related activities of the investee, and has the ability to influence the amount of returns by using the powerover the investee. Joint control refers to the common control of an arrangement according to the relevantagreement, and that the related activities of the arrangement must be unanimously agreed by the participantswho share the control rights before making decisions. Significant influence refers to the power to participate indecision-making on the financial and operating policies of the investee, but it cannot control or jointly controlthe formulation of these policies with other parties. When determining whether the investee can be controlled orexert significant influence, the potential voting rights factors such as convertible corporate bonds and currentexecutable warrants of the investee held by investors and other parties have been considered.
（2）Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control, the initialinvestment cost of the long-term equity investment shall be the share of the book value of the owners' equity ofthe merged party in the consolidated financial statements of the final controlling party on the merger date. Thecapital reserve shall be adjusted for the difference between the initial investment cost of long-term equity
investment and the book value of cash paid, non-cash assets transferred and debts undertaken; If the capitalreserve is insufficient to be offset, the retained income shall be adjusted. If equity securities are issued as themerger consideration, the initial investment cost of long-term equity investment shall be the share of the bookvalue of the owners' equity of the merged party in the consolidated financial statements of the final controllingparty on the merger date, the share capital shall be the total face value of issued shares, and the capital reserveshall be adjusted according to the difference between the initial investment cost of long-term equity investmentand the total face value of the issued shares; If the capital reserve is insufficient to be offset, the retained incomeshall be adjusted.For the long-term equity investment obtained from the business merger not under the same control, theinitial investment cost of the long-term equity investment shall be the merger cost on the purchase date.Intermediary expenses such as audit, legal services, evaluation and consultation and other relatedmanagement expenses incurred by the merging party or the purchaser for business merger are included in thecurrent profits and losses when incurred.Long-term equity investment obtained by other means except the long-term equity investment formed bybusiness merger shall be initially measured at cost. If the additional investment can exert a significant influenceor implement joint control which however does not constitute control on the investee, the long-term equityinvestment cost is the sum of the fair value of the original equity investment determined in accordance with theAccounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instrumentsplus the new investment cost.
（3）Subsequent measurement and profit and loss recognition method
1）Long-term equity investment calculated by cost methodThe company's financial statements use the cost method to calculate the long-term equity investment insubsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.Long-term equity investment accounted by cost method is measured at the initial investment cost. Add orrecover investment to adjust the cost of long-term equity investment. The current investment income isrecognized according to the cash dividend or profit declared by the investee.2）Long-term equity investment calculated by equity methodThe Group's investment in associated enterprises and joint ventures is accounted for by the equity method. Anassociated enterprise refers to the investee over which the Group can exert significant influence, and a jointventure refers to a joint venture arrangement in which the Group has rights only over the net assets of thearrangement.When accounting by equity method, if the initial investment cost of long-term equity investment is greater thanthe fair value share of the identifiable net assets of the investee, the initial investment cost of long-term equityinvestment will not be adjusted; If the initial investment cost is less than the fair value share of the identifiablenet assets of the investee, the difference shall be included in the current profits and losses, and the cost of long-term equity investment shall be adjusted.When accounting by the equity method, the investment income and other comprehensive income are recognizedrespectively according to the share of the net profit and loss and other comprehensive income realized by theinvestee, and the book value of long-term equity investment is adjusted; The share is calculated according to theprofit or cash dividend declared by the investee, and the book value of long-term equity investment is reduced
accordingly; For other changes in the owners' equity of the investee except the net profit and loss, othercomprehensive income and profit distribution, the book value of the long-term equity investment shall beadjusted and included in the capital reserve. When recognizing the share of the net profit and loss of theinvestee, the net profit of the investee shall be adjusted and recognized based on the fair value of the identifiableassets of the investee at the time of investment. If the accounting policies and accounting periods adopted by theinvestee are inconsistent with those of the Company, the financial statements of the investee shall be adjustedaccording to the accounting policies and accounting periods of the Company, so as to recognize the investmentincome and other comprehensive income. For the transactions between the Group and the associated enterprisesand joint ventures, if the assets invested or sold do not constitute business, the unrealized internal transactiongains and losses shall be offset by the portion belonging to the Group according to the proportion enjoyed, andthe investment gains and losses shall be recognized on this basis. However, the unrealized internal transactionlosses between the Group and the investee belong to the impairment losses of the transferred assets and shallnot be offset.When recognizing the share of the net loss of the investee, the book value of the long-term equity investmentand other long-term rights and interests that substantially constitute the net investment of the investee shall bewritten down to zero. In addition, if the Group is obligated to bear additional losses to the investee, theestimated liabilities will be recognized according to the expected obligations and included in the currentinvestment losses. If the investee realizes the net profit in the future, the Group will resume the recognition ofthe income share after the income share makes up for the unrecognized loss share.
（4）Disposal of long-term equity investment
When disposing of long-term equity investment, the difference between its book value and the actualpurchase price is included in the current profits and losses. For the long-term equity investment accounted bythe equity method, if the remaining equity after disposal is still accounted by the equity method, othercomprehensive income originally accounted by the equity method shall be accounted for on the same basis asthe direct disposal of related assets or liabilities by the investee; Owners' equity recognized by changes in otherowners' equity of the investee except net profit and loss, other comprehensive income and profit distributionshall be carried forward to current profits and losses in proportion. If the long-term equity investment accountedfor by the cost method is still accounted for by the cost method after disposal, the other comprehensive incomerecognized by the equity method accounting or the recognition of financial instruments and accountingstandards before gaining control of the investee shall be accounted for on the same basis as the direct disposalof related assets or liabilities by the investee; Changes in owners' equity other than net profit and loss, othercomprehensive income and profit distribution in the net assets of the investee recognized by using the equitymethod are carried forward to the current profits and losses in proportion.If the Group loses control of the investee due to the disposal of part of its equity investment, if theremaining equity after disposal can exercise joint control or exert significant influence on the investee in thepreparation of individual financial statements, it shall be accounted for by the equity method instead, and theremaining equity shall be treated as if it were adjusted by the equity method at the time of acquisition; If theremaining equity after disposal cannot be jointly controlled or exert significant influence on the investee, it shallbe accounted for according to the relevant provisions of the standards for the recognition and measurement offinancial instruments, and the difference between its fair value and book value on the date of control loss shallbe included in the current profits and losses. For other comprehensive income recognized by the Group before itgains control of the investee, when it loses control of the investee, it shall be treated on the same basis as thedirect disposal of related assets or liabilities by the investee. Changes in owners' equity in the net assets of the
investee, except net profit and loss, other comprehensive income and profit distribution, shall be carried forwardto current profits and losses when it loses control of the investee. If the remaining equity after disposal isaccounted by the equity method, other comprehensive income and other owners' equity will be carried forwardin proportion; If the remaining equity after disposal is changed to accounting treatment according to therecognition and measurement standards of financial instruments, all other comprehensive income and otherowners' equity will be carried forward.If the Group loses joint control or significant influence on the investee due to the disposal of some equityinvestments, the remaining equity after disposal shall be accounted for according to the recognition andmeasurement standards of financial instruments, and the difference between its fair value and book value on thedate of joint control loss or significant influence shall be included in the current profits and losses. Othercomprehensive income recognized by the original equity investment due to accounting by the equity methodshall be accounted for on the same basis as the direct disposal of relevant assets or liabilities by the investeewhen the equity method is terminated. All the owners' equity recognized by the investee due to changes in otherowners' equity except net profit and loss, other comprehensive income and profit distribution shall be carriedforward to the current investment income when the equity method is terminated.The Group disposes of the equity investment in its subsidiaries step by step through multiple transactionsuntil it loses control. If the above transactions belong to a package transaction, each transaction will be treatedas a transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control,the difference between the price of each disposal and the book value of the long-term equity investmentcorresponding to the disposed equity will be recognized as other comprehensive income, and then carriedforward to the current profits and losses when it loses control.
23. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation, or both, including rentedhouses and buildings.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment realestate are included in the cost of investment real estate if the economic benefits related to the asset are likely toflow in and the cost can be measured reliably. Other subsequent expenditures are included in the current profitsand losses when incurred.
The Group adopts the cost model for subsequent measurement of investment real estate, and depreciates oramortizes it according to the policy consistent with the right to use houses, buildings or land.
When the investment real estate is disposed of, or permanently withdrawn from use, and it is not expectedto obtain economic benefits from its disposal, the recognition of the investment real estate will be terminated.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment realestate after deducting its book value and related taxes is included in the current profits and losses.
24. Fixed assets
（1） Recognition conditions
Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management,with a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefitsrelated to them are likely to flow into the Group and their costs can be measured reliably. Fixed assets areinitially measured at cost.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economicbenefits related to the fixed assets are likely to flow in and the cost can be measured reliably, and the bookvalue of the replaced part shall be derecognized. Other subsequent expenditures are included in the currentprofits and losses when incurred.
（2） Depreciation method
Fixed assets shall be depreciated within their service life by using the life-average method from the monthfollowing the scheduled serviceable state. The depreciation methods, service life, estimated net salvage andannual depreciation rate of various fixed assets are as follows:
| Category | Depreciation life (year) | Estimated net salvage rate (%) | Annual depreciation rate (%) |
| Houses and buildings | 10-40 | 0.00-4.00 | 2.40-10.00 |
| Machinery equipment | 10-14 | 4.00 | 6.86-9.60 |
| Transportation equipment | 8 | 4.00 | 12.00 |
| Electronic equipment and others | 5 | 4.00 | 19.20 |
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixedassets after deducting the estimated disposal expenses, assuming that the expected service life of the fixed assetshas expired and is in the expected state at the end of the service life.
（3）Other instructions
When the fixed assets are disposed of or it is expected that no economic benefits can be generated throughthe use or disposal, the fixed assets is derecognized. The difference between the disposal income from the sale,transfer, scrapping or damage of fix assets after deducting its book value and related taxes is included in thecurrent profits and losses.
At least at the end of the year, the Group will review the service life, estimated net salvage anddepreciation method of fixed assets, and if there is any change, it will be treated as a change in accountingestimate.
（4）Cognizance evidence and pricing method of financial leasing fixed assets
None
25. Construction in progress
The construction in progress is measured according to the actual cost, which includes various projectexpenditures incurred during the construction period, capitalized borrowing costs before the project reaches thescheduled serviceable state and other related expenses. No depreciation is allowed for construction in progress.Construction in progress is carried forward to fixed assets after it reaches the scheduled serviceable state.
26. Borrowing costs
Borrowing costs that can be directly attributed to the purchase, construction or production of assets thatmeet the capitalization conditions will be capitalized when the asset expenditure has occurred, the borrowingcosts have occurred, and the necessary purchase, construction or production activities to make the assets reachthe predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet
the capitalization conditions purchased, constructed or produced reach the predetermined serviceable state orsaleable state. The remaining borrowing costs are recognized as expenses in the current period.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
None
30. Intangible assets
（1） Valuation method, service life and impairment test of intangible assetsIntangible assets include land use rights, software and patent rights.
Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortizedby straight-line method in equal installments within their expected service life from the time they are availablefor use. Intangible assets with uncertain service life shall not be amortized. The amortization method, servicelife and estimated net salvage of various intangible assets are as follows:
| Category | Amortization method | Service life (year) | Estimated net salvage rate (%) |
| Land use right | Straight-line method | 50 | - |
| Software | Straight-line method | 5 | - |
| Patent | Straight-line method | 15 | - |
At the end of the period, the service life and amortization method of intangible assets with limited servicelife shall be reviewed and adjusted if necessary.
For the impairment test of intangible assets, please refer to Note (V) 19 "Impairment of Long-term Assets"for details.
（2） Internal R&D expenditure
Expenditure in the research stage is included in the current profits and losses when incurred.
Expenditures in the development stage are recognized as intangible assets if they meet the followingconditions at the same time. Expenditures in the development stage that cannot meet the following conditionsare included in the current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that theproducts produced by using the intangible assets exist in the market or the intangible assets themselves exist inthe market, and the intangible assets will be used internally, which can prove their usefulness;
(4) Having sufficient technical, financial and other resources to support the development of the intangibleassets, and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure, allthe R&D expenditures incurred shall be included in the current profits and losses. The cost of intangible assetsformed by internal development activities only includes the total expenditure from the time when thecapitalization conditions are met to the time when the intangible assets reach the intended use, and theexpenditure that has been expensed into profit and loss before the capitalization conditions are met in thedevelopment process will not be adjusted.
31. Long-term asset impairment
On each balance sheet date, the Group checks whether there are signs that long-term equity investment,investment real estate measured by cost method, fixed assets, construction in progress, right-to-use assets andintangible assets with definite service life may be impaired. If these assets show signs of impairment, therecoverable amount is estimated. Intangible assets with uncertain service life and intangible assets that have notyet reached the serviceable state are tested for impairment every year, regardless of whether with signs ofimpairment.
Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group is determined based on the assetgroup to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of theasset or asset group minus the disposal expenses or the present value of its expected future cash flow.
If the recoverable amount of an asset is lower than its book value, the asset impairment provision shall beaccrued according to the difference and included in the current profits and losses.
Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment ofgoodwill, it shall be conducted in combination with the related asset group or asset group portfolio. That is,from the purchase date, the book value of goodwill is allocated to the asset group or asset group portfolio thatcan benefit from the synergistic effect of business merger in a reasonable way. If the recoverable amount of theasset group or asset group portfolio containing the allocated goodwill is lower than its book value, thecorresponding impairment loss will be recognized. The amount of impairment loss will firstly deduct the bookvalue of goodwill allocated to the asset group or asset group portfolio, and then deduct the book value of otherassets according to the proportion of the book value of assets other than goodwill in the asset group or assetgroup portfolio.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in futureaccounting periods.
32. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the currentperiod and subsequent periods with an amortization period of more than one year. Long-term deferred expensesshall be amortized evenly by stages during the expected benefit period.
33. Contractual liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers forconsideration received or receivable from customers. Contract assets and liabilities under the same contract arelisted on a net basis.
34. Employee Remuneration
（1） Accounting treatment method of short-term Remuneration
During the accounting period when employees provide services for the Group, the Group recognizes theactual short-term remuneration as a liability, and records it into the current profits and losses or related assetcosts. The employee welfare expenses incurred by the Group are included in the current profits and losses orrelated asset costs according to the actual amount when actually incurred. If employee welfare expenses arenon-monetary benefits, they shall be measured at fair value.
The social insurance premiums such as medical insurance premium, work injury insurance premium andmaternity insurance premium and housing provident fund paid by the Group for employees, as well as the tradeunion funds and employee education funds withdrawn by the Group according to regulations, shall becalculated according to the stipulated accrual basis and accrual ratio during the accounting period whenemployees provide services for the Group to determine the employee compensation amount, and recognize thecorresponding liabilities, and be included in the current profits and losses or related asset costs.
（2）Accounting treatment of post-employment benefits
Post-employment benefits are all defined contribution plans.
During the accounting period when employees provide services for the Group, the amount payablecalculated according to the set deposit plan is recognized as a liability, and included in the current profits andlosses or related asset costs.
（3） Accounting treatment of dismissal benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising fromthe dismissal benefits shall be recognized at the earlier of the following two dates, and included in the currentprofits and losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan toterminate labor relations or the proposal to cut back; When the Group recognizes the costs or expenses relatedto the reorganization involving the payment of dismissal benefits.
（4）Accounting Treatment Method of Other Long-term Employee BenefitsNone
35.Lease liabilities
Please refer to the "42. Lease (1) The Company as a lessee 1) Lease liability" of "V. SignificantAccounting Policies and Accounting Estimates" of "Section 10 Financial Reporting" of this report
36. Estimated Liabilities
When the obligation related to contingencies such as customer return are the current obligationsundertaken by the Group, and the fulfillment of this obligation is likely to lead to the outflow of economicbenefits, and the amount of this obligation can be measured reliably, it is recognized as estimated liabilities.On the balance sheet date, considering the risk, uncertainty and time value of money related tocontingencies, the estimated liabilities are measured according to the best estimate of the expenditure requiredto fulfill the relevant current obligations. If the time value of money is significant, the best estimate isdetermined by the discounted amount of expected future cash outflow.
37. Share-based payment
Share-based payment of the Group is a transaction that grants equity instruments or assumes liabilitiesdetermined on the basis of equity instruments in order to obtain services provided by employees. Share-basedpayment of the Group is equity-settled share-based payment.
（1）Equity-settled share-based payment
Equity-settled share-based payment granted to employees
Equity-settled share-based payment in exchange for services provided by employees is measured by thefair value of the equity instruments granted to employees on the grant date in the Group. During the waitingperiod, the amount of the fair value is based on the best estimate of the number of exercisable equityinstruments, calculated by the straight-line method and included in the relevant costs or expenses, and thecapital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Group makes the best estimate based on thelatest subsequent information such as changes in the number of employees with vesting rights, and corrects thenumber of equity instruments with estimated vesting rights. The impact of the above estimate is included in therelevant costs or expenses of the current period, and the capital reserve is adjusted accordingly.
（2）Accounting treatment related to implementation, modification and termination of share-basedpayment plan
When the Group modifies the share-based payment plan, if the modification increases the fair value of theequity instruments granted, the increase in services obtained will be recognized accordingly; If the modificationincreases the number of equity instruments granted, the fair value of the increased equity instruments will berecognized as an increase in service acquisition accordingly. The increase in the fair value of equityinstruments refers to the difference between the fair value of equity instruments before and after modificationon the modification date. If the total fair value of share-based payment is reduced or the terms and conditionsof the share-based payment plan are modified in other ways that are unfavorable to employees, the accountingtreatment for the services obtained will continue, as if the change had never occurred, unless the Group cancelspart or all of the equity instruments granted.
During the waiting period, if the granted equity instruments are cancelled, the Group will accelerate thecancellation of the granted equity instruments, and immediately include the amount to be recognized in theremaining waiting period in the current profits and losses, and at the same time recognize the capital reserve. Ifemployees or other parties can choose to meet the conditions of unfeasible rights but fail to meet them withinthe waiting period, the Group will cancel them as the instrument for granting equity.
38. Other financial instruments such as preferred stocks and perpetual bondsNone
39. Revenue
Accounting policies adopted in income recognition and measurementThe Group's income mainly comes from the following business:
(1) Polarizer sales;
(2) Textile sales;
(3) Property leasing and management;
(4) Other business.
The Group has fulfilled its contractual obligation, that is, when the customer obtains the control right of therelevant goods or services, the income will be recognized according to the transaction price allocated to theperformance obligation. Performance obligation refers to the commitment of the Group to transfer clearlydistinguishable goods or services to customers in the contract. Transaction price refers to the amount ofconsideration that the Group is expected to receive due to the transfer of goods or services to customers, whichhowever, does not include the money received on behalf of third parties and the money that the Group expectsto return to customers.
The Group evaluates the contract on the start date of the contract, identifies the individual performanceobligations contained in the contract, and determines whether each individual performance obligation isperformed within a certain period of time or at a certain point of time. If one of the following conditions is met,it belongs to the performance obligation within a certain period of time, and the Group recognizes the incomewithin a certain period of time according to the performance progress: (1) The customer obtains and consumesthe economic benefits brought by the performance of the Group; (2) The customer can control the goods underconstruction during the performance of the Group; (3) The goods produced by the Group during theperformance of the contract have irreplaceable purposes, and the Group has the right to collect money for theaccumulated performance part completed so far during the whole contract period. Otherwise, the Grouprecognizes income at the point when the customer obtains control over the relevant goods or services.
If the contract contains two or more performance obligations, the Group will allocate the transaction priceto each individual performance obligation on the contract start date according to the relative proportion of theseparate selling price of the goods or services promised by each individual performance obligation. However, ifthere is conclusive evidence that the contract discount or variable consideration is only related to one or more(but not all) performance obligations in the contract, the Group will allocate the contract discount or variableconsideration to one or more related performance obligations. Separate selling price refers to the price at whichthe Group sells goods or services to customers separately. If the separate selling price cannot be directlyobserved, the Group comprehensively considers all relevant information that can be reasonably obtained, andestimates the separate selling price by using observable input values to the maximum extent.
For sales with return clauses, when the customer obtains the control right of the relevant goods, the Grouprecognizes the income according to the amount of consideration expected to be charged due to the transfer ofgoods to the customer (that is, excluding the amount expected to be refunded due to sales return), andrecognizes the liabilities according to the amount expected to be refunded due to sales return; At the same time,according to the book value of the expected returned goods at the time of transfer, the balance after deducting
the expected cost of recovering the goods (including the loss of the value of the returned goods) is recognized asan asset, and the net carry-over cost of the above assets is deducted according to the book value of thetransferred goods at the time of transfer.For sales with quality assurance clauses, if the quality assurance provides a separate service in addition toassuring customers that the goods or services sold meet the established standards, the quality assuranceconstitutes a single performance obligation. Otherwise, the Group shall handle the quality assuranceresponsibility in accordance with the Accounting Standards for Business Enterprises No.13-Contingencies.According to whether the Group has control over the goods or services before transferring them tocustomers, the Group judges whether it is the main responsible person or the agent when engaging intransactions. If the Group can control the goods or services before transferring them to customers, the Group isthe main responsible person, and the income is recognized according to the total consideration received orreceivable; Otherwise, the Group, as an agent, recognizes income according to the expected amount ofcommission or handling fee, which is determined according to the net amount of the total considerationreceived or receivable after deducting the price payable to other interested parties.If the Group receives the payment for the sale of goods or services from customers in advance, it will firstrecognize the payment as a liability, and then change it to income when the relevant performance obligationsare fulfilled. When the advance payment of the Group does not need to be returned, and the customer may giveup all or part of its contractual rights, if the Group is expected to be entitled to the amount related to thecontractual rights given up by the customer, the above amount will be recognized as income in proportionaccording to the mode of the customer's exercise of contractual rights; Otherwise, the Group will only convertthe relevant balance of the above liabilities into income when it is extremely unlikely that the customer willdemand to perform the remaining performance obligations.Please refer to Note (X) 5 "The Group as a lessor records the operating leasing business" for theaccounting policy of the Group's income recognition in property leasing.
40. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group fromthe government free of charge. Government subsidies are recognized when they can meet the conditionsattached to government subsidies and can be received.If government subsidies are monetary assets, they shall be measured according to the amount received orreceivable.
（1）Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group'sgovernment subsidies, these government subsidies are government subsidies related to assets.
Government subsidies related to assets are recognized as deferred income, and are included in the currentprofits and losses in installments according to the straight-line method within the service life of the relatedassets.
（2）Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies, such as industry development support funds, enterprise developmentsupport funds and tax subsidies, cannot form long-term assets, these government subsidies are governmentsubsidies related to income.
Government subsidies related to income, if used to compensate related costs and losses in future periods,will be recognized as deferred income, and are included in the current profits and losses during the period whenrelated costs or expenses are recognized; if used to compensate the related costs and losses that have occurred,will be directly included in the current profits and losses.Government subsidies related to the daily activities of the Group are included in other income according tothe nature of economic business. Government subsidies unrelated to the daily activities of the Group areincluded in non-operating income.When the confirmed government subsidy needs to be returned, if there is a relevant deferred revenuebalance, the relevant deferred income book balance will be offset, and the excess will be included in the currentprofits and losses; If there is no relevant deferred income, it will be directly included in the current profits andlosses.
41. Deferred income tax assets/Deferred income tax liabilities
Income tax expenses include current income tax and deferred income tax.
（1）Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previousperiods shall be measured by the expected income tax payable (or refunded) calculated in accordance with theprovisions of the tax law.
（2）Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis, and thetemporary difference between the book values of items that are not recognized as assets and liabilities but canbe determined in tax basis according to the provisions of the tax law and tax basis, the balance sheet liabilitymethod is adopted to recognize deferred income tax assets and deferred income tax liabilities.
In general, all temporary differences are recognized as related deferred income tax. However, fordeductible temporary differences, the Group recognizes related deferred income tax assets to the extent that it islikely to obtain taxable income to offset the deductible temporary differences. In addition, for the temporarydifferences related to the initial recognition of goodwill and the initial recognition of assets or liabilities arisingfrom transactions that are neither business merger nor affect accounting profits and taxable income (ordeductible losses), the relevant deferred income tax assets or liabilities are not recognized.
For deductible losses and tax deductions that can be carried forward to future years, the correspondingdeferred income tax assets are recognized to the extent that it is likely to obtain future taxable income fordeducting deductible losses and tax deductions.
The Group recognizes deferred income tax liabilities arising from taxable temporary differences related toinvestments in subsidiaries, associated enterprises and joint ventures, unless the Group can control the timewhen the temporary differences are reversed, and the temporary differences are unlikely to be reversed in theforeseeable future. For deductible temporary differences related to the investments of subsidiaries, associatedenterprises and joint ventures, the Group recognizes the deferred income tax assets only when the temporarydifferences are likely to be reversed in the foreseeable future and the taxable income used to offset thedeductible temporary differences is likely to be obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be measuredaccording to the applicable tax rate during the expected recovery of related assets or settlement of relatedliabilities.Except that the current income tax and deferred income tax related to transactions and events directlyincluded in other comprehensive income or shareholders' equity are included in other comprehensive income orshareholders' equity, and the deferred income tax arising from business merger adjusts the book value ofgoodwill, the remaining current income tax and deferred income tax expenses or gains are included in thecurrent profits and losses.On the balance sheet date, the book value of deferred income tax assets shall be rechecked. If it is probablethat sufficient taxable income will not be obtained in the future to offset the benefits of deferred income taxassets, the book value of deferred income tax assets shall be written down. When sufficient taxable income islikely to be obtained, the amount written down will be reversed.
（3）Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquireassets and pay off liabilities at the same time, the Group's current income tax assets and current income taxliabilities are presented on an offset net basis.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis,and the deferred income tax assets and liabilities are related to the income tax levied by the same tax collectiondepartment on the same taxpayer or to different taxpayers, but in the future, the taxpayers involved intend tosettle the current income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities at thesame time, the Group's deferred income tax assets and liabilities are presented on an offset net basis.
42. Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for considerationwithin a certain period of time.
On the commencement date of the contract, the Group evaluates whether the contract is a lease or containsa lease. Unless the terms and conditions of the contract change, the Group will not re-evaluate whether thecontract is a lease or contains a lease.
（1）The Group as the lessee
1）Split of leaseIf the contract contains one or more leased and non-leased parts at the same time, the Group will split eachseparate leased and non-leased part and allocate the contract consideration according to the relative proportionof the sum of the separate prices of each leased part and the non-leased part.2）Right-to-use assetsExcept for short-term leases, the Group recognizes the right-to-use assets on the start date of lease term. Thestart date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group.The right-to-use assets is initially measured according to the cost. The cost includes:
Initial measurement amount of lease liabilities;
For the lease payment paid on or before the start date of the lease term, if there are lease incentives, deduct theamount related to the lease incentives enjoyed;· Initial direct expenses incurred by the Group;· The estimated costs incurred by the Group for dismantling and removing the leased assets, restoring thepremises where the leased assets are located or restoring the leased assets to the state agreed in the lease clauses.The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-FixedAssets, and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it hasacquired the ownership of the leased assets at the expiration of the lease term, the right-to-use assets will bedepreciated within the remaining service life of the leased assets. If it cannot be reasonably determined that theownership of the leased assets can be obtained at the expiration of the lease term, depreciation shall be accruedduring the lease term or the remaining service life of the leased assets, whichever is shorter.According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Groupdetermines whether the right-to-use assets have been impaired, and carries out accounting treatment for theidentified impairment losses.3）Lease liabilitiesExcept for short-term leases, the Group initially measures the lease liabilities on the start date of lease termaccording to the present value of the unpaid lease payment on that date. When calculating the present value ofthe lease payment, the Group uses the lease interest rate as the discount rate. If the lease interest rate cannot bedetermined, the incremental loan interest rate is used as the discount rate.Lease payment refers to the amount paid by the Group to the lessor related to the right to use the leased assetsduring the lease term, including:
· Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amountof lease incentive shall be deducted;· Variable lease payment amount depending on index or ratio;· The exercise price of the option reasonably determined by the Group to be exercised;· The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise theoption;· The amount expected to be paid according to the residual value of the guarantee provided by the Group.After the start of the lease term, the Group calculates the interest expense of the lease liabilities in each periodof the lease term at a fixed periodic interest rate, and includes it in the current profits and losses or related assetcosts.After the commencement of the lease term, if the following circumstances occur, the Group will re-measure thelease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets hasbeen reduced to zero, but the lease liabilities still need to be further reduced, the Group will include thedifference in the current profits and losses:
· If the lease term changes or the evaluation result of the purchase option changes, the Group will re-measurethe lease liabilities according to the present value calculated by the changed lease payment amount and therevised discount rate;· If the estimated payable amount according to the guarantee residual value or the index or proportion used to
determine the lease payment changes, the Group will re-measure the lease liabilities according to the presentvalue calculated by the changed lease payment amount and the original discount rate.4）Short-term leaseFor the short-term lease of some factories and some rented warehouses, the Group chooses not to recognize theright-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months anddoes not include the option to purchase on the start date of the lease term. The Group will charge the leasepayment for short-term lease to the current profits and losses or related asset costs in accordance with thestraight-line method in each period of the lease term.5）Lease changeIf the lease changes and the following conditions are met at the same time, the Group will carry out accountingtreatment on the lease change as a separate lease:
· The lease change expands the lease scope by increasing the right to use one or more leased assets;· The increased consideration is equivalent to the individual price of the expanded part of the lease scopeadjusted according to the contract situation.If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the Groupwill re-allocate the consideration of the changed contract, re-determine the lease term, and re-measure the leaseliabilities according to the present value calculated by the changed lease payment and the revised discount rate.If the lease scope is reduced or the lease term is shortened due to lease change, the Group shall correspondinglyreduce the book value of the right-to-use assets, and include the related gains or losses of partial or fulltermination of lease in the current profits and losses. If other lease changes lead to the re-measurement of leaseliabilities, the Group will adjust the book value of the right-to-use assets accordingly.6）Policy-related rent concessionFor the rent concessions reached between the Group and the lessor on the existing lease contract, such as rentreduction, deferred payment, etc., and the following conditions are met at the same time, the Group chooses toadopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that beforeconcession;
(2) After comprehensive consideration of qualitative and quantitative factors, it is determined that other clausesand conditions of the lease have not changed significantly.The Group continues to calculate the interest expense of lease liabilities at the same discount rate as beforeconcession and includes it in the current profits and losses, and continues to carry out subsequent measurementsuch as depreciation of right-to-use assets according to the same method as before concession. In case of rentreduction, the Group regards the reduced rent as a variable lease payment amount, and when the original rentpayment obligation is terminated by reaching a concession agreement, the relevant asset costs or expenses areoffset by the discounted amount at the discount rate before discounting or concession, and the lease liabilitiesare adjusted accordingly; If the rent payment is delayed, the Group will offset the lease liabilities recognized inthe previous period when actually paying.For short-term leases with simplified treatment, the Group continues to include the original contract rent in therelevant asset cost or expense in the same way as before concession. In case of rent reduction, the Group
regards the reduced rent as a variable lease payment, and offsets the cost or expense of related assets during thereduction period; If the payment of rent is delayed, the Group will recognize the rent payable as payable in theoriginal payment period, and offset the payable recognized in the previous period when actually paying.
（2）The Group as the lessor
1）Split of leaseIf the contract contains both leased and non-leased parts, the Group will allocate the contract considerationaccording to the provisions of the Accounting Standards for Business Enterprises No.14-Revenues ontransaction price allocation, and the basis of allocation is the separate prices of the leased part and the non-leased part.2）Classification of leaseA lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets isa financial lease. Other leases except financing lease are operating leases.
①The Group as a lessor records the operating lease business
During each period of the lease term, the Group adopts the straight-line method to recognize the lease receiptsfrom operating lease as rental income. The initial direct expenses incurred by the Group in connection withoperating leases are capitalized when incurred, apportioned on the same basis as rental income recognitionduring the lease term, and included in current profits and losses in installments.The variable lease receipts related to operating leases obtained by the Group, which are not included in the leasereceipts, are included in the current profits and losses when actually incurred.
（3）Lease change
If the operating lease is changed, the Group will carry out accounting treatment on it as a new lease fromthe effective date of the change, and the lease receipts received in advance or receivable related to the leasebefore the change will be regarded as the receipts of the new lease.
（4）Policy-related rent concession
For the rent concessions reached between the lessor and the lessor on the existing lease contract, such asrent reduction, deferred payment, etc., and the following conditions are met at the same time, the Group choosesto adopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that beforeconcession;
(2) After comprehensive consideration of qualitative and quantitative factors, it is determined that otherclauses and conditions of the lease have not changed significantly.
For the operating lease of the Group's own property lease contract, the Group continues to recognize theoriginal contract rent as lease income in the same way as before concession. In case of rent reduction, theGroup regards the reduced rent as a variable lease payment, and reduces the lease income during the reductionperiod; If the rent collection is delayed, the Group will recognize the rent that should be collected as receivablesin the original collection period, and offset the receivables recognized in the previous period when it is actuallyreceived.
43. Other important accounting policies and accounting estimates
None
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
? □ Applicable √ Applicable
（2） Changes in accounting estimates
□ Applicable √ Applicable
（3）The information of the adjusting items related to the financial statements at the beginning of theyear of first implementation due to the first implementation of new accounting standards from 2023.
□ Applicable √ Applicable
45.Other
NoneVI. Taxation
1. Main categories and rates of taxes
| Tax category | Tax basis | Tax rate |
| VAT | The balance after deducting the deductible input tax from the output tax; The tax calculation method of "exemption, offset and refund" is applied to sales of export products | The output tax for domestic sales is calculated according to 13%, 9%, 6% and 5% of the sales amount calculated according to relevant tax regulations, and the tax rebate rate for export products is 13% |
| Urban maintenance and construction tax | Payable turnover tax | 7% |
| Business income tax | Taxable amount of income | 25%,20%,15%,8.25% |
| Surcharge for education | Payable turnover tax | 3% |
| Surcharge for local education | Payable turnover tax | 2% |
| Property tax | Residual value or rental income after deducting 30% from the original value of property at one time | 1.2% or12% |
The disclosure statement if there are taxpayers with different enterprise income tax rates
| Name of taxpayer | Income tax rate |
| The Company | 25% |
| Shenzhen Shenfang Property Management Co., Ltd. | 25% |
| Shenzhen Shengjinlian Technology Co., Ltd. | 25% |
| Shenzhen Beauty Century Garment Co., Ltd. | 20%(Note 1) |
| Shenzhen Lisi Industrial Co., Ltd. | 20%(Note 1) |
| Shenzhen Shenfang Sungang Property Management Co., Ltd. | 20%(Note 1) |
| Shenzhen Huaqiang Hotel | 20%(Note 1) |
| Shengtou（HK）Co., Ltd. | 8.25%(Note 2) |
| Shenzhen SAPO Photoelectric Co., Ltd. | 15%(Note 3) |
Note 1: See "Tax Preferences" in Notes 2 (2) for details.
Note 2: According to the Tax Ordinance of Hong Kong, Hong Kong companies applied the two-tiersystem of profits tax, and the first profit of HK$ 2 million will be calculated and paid at 8.25%, and the profitsgenerated thereafter will be calculated at 16.5%.Note 3: See "Tax Preference" in Notes , 2(1) for details.
2. Tax preference
(1) In 2022, SAPO Photoelectric, a subsidiary of the Company, was jointly recognized as a high-techenterprise by Shenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau andShenzhen Tax Service, State Taxation Administration, respectively, with a certification period of 3 years, andthe certificate numbers of GR202244204504 respectively. It shall apply the preferential tax policies for high-tech enterprises within three years after it is recognized as a high-tech enterprise, and pay enterprise income taxat the rate of 15% after being filed by the competent tax bureau.
（2）The subsidiaries of the Company, Beauty Century Company, Shenzhen Huaqiang Hotel Co., Ltd,Shenzhen Lisi Industrial Development Co., Ltd, Shenzhen Shenfang Sungang Property Management Co., Ltd,and Shenzhen Shenfang Property Management Co., Ltd are eligible small and micro-profit enterprises.According to the Notice on the Implementation of the Inclusive Tax Exemption and Reduction Policy for Smalland Micro Enterprises (No. 13[2019]Cai Shui ) and the Announcement on Further Implementing thePreferential Income Tax Policy for Small and Micro Enterprises ( According to the No. 13 2022Announcementof the State Administration of Taxation of the Ministry of Finance), the Announcement of the StateAdministration of Taxation of the Ministry of Finance on the Preferential Income Tax Policies for Small andMicro Enterprises and Individual Industrial and Commercial Enterprises (The No. 6 2023Announcement of theState Administration of Taxation of the Ministry of Finance) and the Announcement of the State Administrationof Taxation on the Implementation of the Preferential Income Tax Policies for Small and Micro-ProfitEnterprises (The No. 6 [2023]Announcement of State Administration of Taxation), the portion of taxableincome not exceeding RMB 1 million in the current year shall be reduced to 25% as taxable income and subjectto enterprise income tax at a rate of 20%.; For the portion of taxable income exceeding RMB 1 million but notexceeding RMB 3 million in the current year, it shall be reduced to 50% as taxable income and subject toenterprise income tax at a rate of 20%.
（3）According to the relevant provisions of the Notice of the General Administration of Customs and theState Administration of Taxation of the Ministry of Financeon the Import Tax Policies for Supporting theDevelopment of the New Display Device Industry (No. 19[2021]Cai Shui), SAPO Photoelectric , a subsidiaryof the Company, meets the relevant conditions and enjoys the policy of exemption from import tariffs forrelated products from January 1, 2021 to December 31, 2030.
（4）The subsidiaries of the Company, Shenzhen Beauty Century Company, Shenzhen Huaqiang Hotel Co.,
Ltd, Shenzhen Lisi Industrial Development Co., Ltd, Shenzhen Shenfang Sungang Property Management Co.,Ltd, and Shenzhen Shenfang Property Management Co., Ltd are eligible small and micro-profit enterprises. Inaccordance with the relevant provisions of the Announcement of the State Administration of Taxation of theMinistry of Finance on Further Implementing the "Six Taxes and Two Fees" Exemption and Reduction Policyfor Small and Micro Enterprises (Announcement No. 10 of 2022 of the State Administration of Taxation of theMinistry of Finance), From January 1, 2022 to December 31, 2024, the small-scale value-added tax taxpayers,small and micro-profit enterprises and individual industrial and commercial enterprises can reduce resource tax,
urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty (excluding stamp dutyon securities transactions), cultivated land occupation tax and education fee surcharge, and local educationsurcharge within the tax range of 50%.
（5）According to the Notice of the Ministry of Finance, State Administration of Taxation, Ministry ofHuman Resources and Social Security, and Poverty Alleviation Office of the State Council on Tax Policies toFurther Support and Promote the Entrepreneurship and Employment of Key Groups ( No. 22[2019]Cai Shui ),from the month of signing the labor contract and paying social insurance, the value-added tax, urbanmaintenance and construction tax, education fee surcharge, local education surcharge and enterprise income taxpreferential will be deducted according to the actual number of recruits within 3 years in fixed amount, and thefixed amount standard is 7,800 yuan per person per year. The tax calculation basis for urban maintenance andconstruction tax, education fee surcharge and local education surcharge is the VAT payable before enjoying thispreferential tax policy. SAPO Photoelectric, a subsidiary of the Company, applies the above preferential taxpolicies.
3.Other
NoneVII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
| Items | Closing balance | Opening balance |
| Cash at hand | 2,231.43 | 3,980.56 |
| Bank deposit | 345,697,680.49 | 874,795,302.32 |
| Other monetary funds | 270,542,231.07 | 116,990,685.31 |
| Total | 616,242,142.99 | 991,789,968.19 |
| Including : The total amount of deposit abroad | 0.00 | 0.00 |
| Total amount of money limited to use, such as mortgage, pledge or freeze | 270,542,231.07 | 116,990,685.31 |
Other note
Bank deposits include interest on current deposits of RMB 16,175.93, Other monetary funds include theinterest of time deposit of RMB 226,666.67 .
Note 2: On June 30, 2023, the Company's other monetary funds included the Bank Draft ofRMB4,595,637.31, RMB 1,209,498.75, and the principal and interest of time deposit certificates due for morethan three months from the date of purchase of RMB 265,946,593.76.
2. Transactional financial assets
In RMB
| Items | Balance at the end of this year | Balance at the end of last year |
| Financial assets measured at fair value and whose changes are included in the current profits and losses | 613,554,063.16 | 319,605,448.44 |
| Including | ||
| money funds and structured deposits | 613,554,063.16 | 319,605,448.44 |
| Including |
| Total | 613,554,063.16 | 319,605,448.44 |
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
| Items | Balance at the end of this year | Balance at the end of last year |
| Bank acceptance | 56,718,590.38 | 74,619,100.26 |
| Total | 56,718,590.38 | 74,619,100.26 |
In RMB
| Category | Balance at the end of this year | Balance at the end of last year | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Of which： | ||||||||||
| Accrual of bad debt provision by portfolio | 56,718,590.38 | 100.00% | 0.00 | 0.00% | 56,718,590.38 | 74,619,100.26 | 100.00% | 0.00 | 0.00% | 74,619,100.26 |
| Including： | ||||||||||
| .Bank acceptance Bill | 56,718,590.38 | 100.00% | 0.00 | 0.00% | 56,718,590.38 | 74,619,100.26 | 100.00% | 0.00 | 0.00% | 74,619,100.26 |
| Total | 56,718,590.38 | 100.00% | 0.00 | 0.00% | 56,718,590.38 | 74,619,100.26 | 100.00% | 0.00 | 0.00% | 74,619,100.26 |
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：NoneOf which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3） Notes receivable pledged by the company at the end of the period
None
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period andnot expired yet on the date of balance sheet
In RMB
| Items | Amount derecognized at the end of the period | Amount not yet derecognized at the end of the period |
| Bank acceptance bill | 0.00 | 40,032,610.22 |
| Commercial acceptance | 0.00 | 0.00 |
| Total | 0.00 | 40,032,610.22 |
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contractor agreementNone
（6） The actual write-off accounts receivable
None
5. Account receivable
(1)Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year-begin | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single item | 75,859,176.03 | 8.32% | 30,412,355.96 | 40.09% | 45,446,820.07 | 74,770,706.00 | 10.93% | 28,457,163.32 | 38.06% | 46,313,542.68 |
| Accrual of bad debt provision by portfolio | 835,796,147.09 | 91.68% | 26,335,238.20 | 3.15% | 809,460,908.89 | 609,507,464.34 | 89.07% | 19,237,537.09 | 3.16% | 590,269,927.25 |
| Including： | ||||||||||
| Portfolio 1 | 807,472,529.45 | 88.57% | 24,798,245.92 | 3.07% | 782,674,283.53 | 591,168,603.26 | 86.39% | 18,295,605.12 | 3.10% | 572,872,998.14 |
| Portfolio 2 | 28,323,617.64 | 3.11% | 1,536,992.28 | 5.43% | 26,786,625.36 | 18,338,861.08 | 2.68% | 941,931.97 | 5.14% | 17,396,929.11 |
| Total | 911,655,323.12 | 100.00% | 56,747,594.16 | 6.22% | 854,907,728.96 | 684,278,170.34 | 100.00% | 47,694,700.41 | 6.97% | 636,583,469.93 |
Accrual of bad debt provision by single item:
In RMB
| Name | Closing balance | |||
| Book balance | Bad debt provision | Proportion | Reason | |
| Client 1 | 20,940,304.25 | 4,900,031.19 | 23.40% | Expected high risk of recovery |
| Client 2 | 19,608,301.25 | 4,588,342.49 | 23.40% | Expected high risk of recovery |
| Client 3 | 8,944,810.20 | 2,344,434.75 | 26.21% | Expected high risk of recovery |
| Client 4 | 2,797,016.81 | 2,797,016.81 | 100.00% | Expected to be uncollectible |
| Client 5 | 2,701,052.56 | 810,315.77 | 30.00% | Expected high risk of recovery |
| Client 6 | 1,697,437.81 | 1,697,437.81 | 100.00% | Expected to be uncollectible |
| Client 7 | 1,609,101.31 | 482,730.39 | 30.00% | Expected high risk of recovery |
| Client 8 | 1,576,585.72 | 1,576,585.72 | 100.00% | Expected to be uncollectible |
| Client 9 | 1,298,965.36 | 1,298,965.36 | 100.00% | Expected to be uncollectible |
| Subtotal | 14,685,600.76 | 9,916,495.67 | 67.53% | |
| Total | 75,859,176.03 | 30,412,355.96 |
Accrual of bad debt provision by portfolio:
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Portfolio 1 | 807,472,529.45 | 24,798,245.92 | 3.07% |
| Portfolio 2 | 28,323,617.64 | 1,536,992.28 | 5.43% |
| Total | 835,796,147.09 | 26,335,238.20 | |
Note：
Credit loss provision by item: if there is evidence that the credit risk of a single receivable is relatively high,credit loss provision shall be accrued separately for the receivable.Credit loss provision is made according to the portfolio of credit risk characteristics: except for receivableswith credit impairment loss, the Group uses impairment matrix to evaluate the expected credit loss of accountsreceivable formed by operating income on the basis of portfolio. According to the risk characteristics, the Groupdivides customers into Portfolio 1 and Portfolio 2, which respectively involve customers with the same riskcharacteristics.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 897,992,300.67 |
| 1-2 years | 779,798.03 |
| 2-3 years | 0.00 |
| Over 3 years | 12,883,224.42 |
| 3-4 years | 454,035.81 |
| Over 5 years | 12,429,188.61 |
| Total | 911,655,323.12 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by portfolio: | 19,237,537.09 | 7,107,304.24 | 9,603.13 | 0.00 | 0.00 | 26,335,238.20 |
| Accrual of bad debt provision by single item: | 28,457,163.32 | 1,955,192.64 | 0.00 | 0.00 | 0.00 | 30,412,355.96 |
| Total | 47,694,700.41 | 9,062,496.88 | 9,603.13 | 0.00 | 0.00 | 56,747,594.16 |
Of which the significant amount of the reversed or collected part during the reporting period :None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
| Name | Balance in year-end | Proportion(%) | Bad debt provision |
| Client 1 | 168,740,368.13 | 18.51% | 5,214,077.39 |
| Client 2 | 92,294,917.91 | 10.12% | 2,851,912.96 |
| Client 3 | 85,996,566.25 | 9.43% | 2,657,293.90 |
| Client 4 | 80,398,103.20 | 8.82% | 2,484,301.39 |
| Client 5 | 69,843,457.35 | 7.66% | 2,158,162.83 |
| Total | 497,273,412.84 | 54.54% |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement ofaccounts receivableNone
6.Receivable financing
In RMB
| Items | Closing balance | Opening balance |
| Bank acceptance bill | 22,863,088.36 | 54,413,796.91 |
| Total | 22,863,088.36 | 54,413,796.91 |
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Other noteOn June 30, 2023, the endorsed or discounted unexpired bank acceptance bills that the Group derecognizedamounted to RMB 54,533,024.39. For the bank acceptance bills of large state-owned commercial banks withhigh credit rating and listed national joint-stock commercial banks, the Group believes that after theendorsement or discount of such bank acceptance bills, the related main risks and rewards have been transferredto the counterparty, and such endorsed or discounted unexpired bank acceptance bills should be derecognized.
The Company believes that the acceptance bank credit rating of the bank acceptance bills held by it is high,with no significant credit risk, therefore no credit loss provision has been made.
7.Prepayments
(1) List by aging analysis:
In RMB
| Aging | Balance at the end of this year | Balance at the end of last year |
| Amount | Proportion % | Amount | Proportion % | |
| Within 1 year | 24,263,130.32 | 81.81% | 16,690,766.68 | 90.75% |
| 1-2 years | 5,395,750.80 | 18.19% | 1,700,677.99 | 9.25% |
| Total | 29,658,881.12 | 18,391,444.67 |
Note：
On June 30, 2023, the Group had no prepayments with an age of more than one year and a significant amount.
(2) Prepayments of the top five ending balances by prepayment object
The total amount of the top five year-end balances collected by prepayment objects is RMB 21,692,691.03,accounting for 73.14% of the total year-end balances of prepayments.
8. Other receivables
In RMB
| Items | Balance at the end of this year | Balance at the end of last year |
| Other receivable | 3,393,141.86 | 10,585,975.38 |
| Total | 3,393,141.86 | 10,585,975.38 |
（1） Interest receivable
1）Classification interest receivables.None
2) Significant overdue interest
None3）Bad-debt provision?Applicable □Not applicableLoss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
(2)Dividend receivable
1) Dividend receivable
None
2) Significant dividend receivable aged over 1 year
None3）Bad-debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Unit account | 16,811,262.94 | 16,330,801.03 |
| Deposit | 2,186,800.03 | 2,801,300.29 |
| Reserve fund and staff loans | 889,740.57 | 580,028.97 |
| Export rebate | 709,028.56 | 1,023,715.60 |
| Other | 463,070.29 | 1,688,371.65 |
| Freeze funds | 347,284.99 | 6,559,327.26 |
| Total | 21,407,187.38 | 28,983,544.80 |
2）) Accrual of credit loss provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2023 | 494,588.28 | 198,890.09 | 17,704,091.05 | 18,397,569.42 |
| Balance as at January 1, 2023in current | ||||
| Provision in Current Year | 38,815.94 | 14,108.85 | 11,798.65 | 64,723.44 |
| Reversal in Current Year | -448,247.34 | -448,247.34 | ||
| Balance as at 30 June 2023 | 85,156.88 | 212,998.94 | 17,715,889.70 | 18,014,045.52 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 2,038,042.86 |
| 1-2 years | 808,278.98 |
| 2-3 years | 362,049.11 |
| Over 3 years | 18,198,816.43 |
| 3-4 years | 4,200.00 |
| 4-5 years | 124,799.10 |
| Over 5 years | 18,069,817.33 |
| Total | 21,407,187.38 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by single item | 17,188,131.90 | 17,188,131.90 | ||||
| Accrual of bad debt provision by portfolio | 1,209,437.52 | 64,723.44 | -448,247.34 | 825,913.62 | ||
| Total | 18,397,569.42 | 64,723.44 | -448,247.34 | 18,014,045.52 |
Where the current bad debts back or recover significant amounts:None4） Other account receivables actually cancel after write-off
None5）Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| Client 1 | Unit account | 980,461.06 | Over 5 years | 4.58% | 980,461.06 |
| Client 2 | Unit account | 709,028.48 | Over 5 years | 3.31% | 709,028.48 |
| Client 3 | Unit account | 509,611.25 | Over 5 years | 2.38% | 272,642.02 |
| Client 4 | Unit account | 500,000.00 | 1-2 years | 2.34% | 53,500.00 |
| Client 5 | Unit account | 294,983.04 | 2-3 years | 1.38% | 90,744.16 |
| Total | 2,994,083.83 | 13.99% | 2,106,375.72 |
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financialassetsNone
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of otheraccounts receivableNone
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industryNo
（1）Category of Inventory
In RMB
| Items | Closing book balance | Opening book balance | ||||
| Book balance | Provision for inventory impairment | Book value | Book balance | Provision for inventory impairment | Book value | |
| Raw materials | 371,378,015.36 | 35,514,179.23 | 335,863,836.13 | 291,062,812.80 | 48,809,720.50 | 242,253,092.30 |
| Processing products | 254,572,639.52 | 43,363,067.47 | 211,209,572.05 | 258,881,779.59 | 41,882,202.00 | 216,999,577.59 |
| Merchandise inventory | 196,732,911.54 | 87,994,399.99 | 108,738,511.55 | 183,723,885.96 | 92,381,073.63 | 91,342,812.33 |
| Commissioned materials | 7,582,759.79 | 292,135.99 | 7,290,623.80 | 9,016,668.25 | 1,164,501.70 | 7,852,166.55 |
| Total | 830,266,326.21 | 167,163,782.68 | 663,102,543.53 | 742,685,146.60 | 184,237,497.83 | 558,447,648.77 |
（2）Inventory falling price reserves
In RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Raw materials | 48,809,720.50 | -13,295,541.27 | 35,514,179.23 | |||
| Processing products | 41,882,202.00 | 12,852,877.82 | 11,372,012.35 | 43,363,067.47 | ||
| Merchandise inventory | 92,381,073.63 | 36,827,926.45 | 41,214,600.09 | 87,994,399.99 | ||
| Commissioned materials | 1,164,501.70 | -872,365.71 | 292,135.99 | |||
| Total | 184,237,497.83 | 35,512,897.29 | 52,586,612.44 | 167,163,782.68 | ||
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalizedNone
（4）Description of amortization amount of contract performance cost in the current periodNone
10.Contract assets
None
11. Assets divided as held-to-sold
None
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Receivable return cost | 32,391,512.15 | 43,446,472.67 |
| Advance payment of income tax | 17,271,913.84 | 26,089,058.57 |
| Total | 49,663,425.99 | 69,535,531.24 |
14.Creditor's right investment
None
15.Other creditor's rights investment
None
16. Long-term accounts receivable
(1) List of long-term accounts receivable
None
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financialassetsNone
（3） The amount of the assets and liabilities formed by the transfer and the continues involvement oflong-term accounts receivable
None
17. Long-term equity investment
In RMB
| Investees | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Other comprehensive income | Changes in other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||||
| I. Joint ventures | |||||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 129,506,271.76 | -2,192,221.35 | 127,314,050.41 | ||||||||
| Subtotal | 129,506,271.76 | -2,192,221.35 | 0.00 | 127,314,050.41 | |||||||
| 2. Affiliated Company | |||||||||||
| Yehui International Co., Ltd. | 1,869,767.43 | -43,637.75 | 54,950.70 | 1,881,080.38 | |||||||
| Shenzhen Changlianfa Printing & dyeing Company | 3,105,796.55 | 124,599.07 | 3,230,395.62 | ||||||||
| Subtotal | 4,975,563.98 | 80,961.32 | 54,950.70 | 5,111,476.00 | |||||||
| Total | 134,481,835.74 | -2,111,260.03 | 54,950.70 | 132,425,526.41 | |||||||
18. Other equity instruments investment
In RMB
| Items | Year-end balance | Year-beginning balance |
| Financial assets designated as fair value and whose changes are included in other comprehensive income | 167,678,283.27 | 167,678,283.27 |
| Total | 167,678,283.27 | 167,678,283.27 |
(2) Investment in non-transactional equity instruments
In RMB
| Items | Dividend income recognized this year | Cumulative gain/loss | Cumulative loss | Amount transferred from other comprehensive income to retained income this year | Reason designated as being measured at fair value and change being included in other comprehensive income | Reasons for transferring from other comprehensive income to retained income this year |
| Shenzhen Dailishi Underwear Co., Ltd. | 550,000.00 | 21,627,143.74 | Planned to be held by the Group for a long time. | |||
| Union Development Co., Ltd. | 208,000.00 | 123,361,939.39 | Planned to be held by the Group for a long time. | |||
| Jintian Industry（Group）Co., Ltd. | 14,831,681.50 | Planned to be held by the Group for a long time. | ||||
| Shenzhen Xinfang Knitting Co., Ltd. | 148,000.00 | 1,851,903.00 | Planned to be held by the Group for a long time. | |||
| Shenzhen South Textile Co., Ltd. | 14,559,440.88 | Planned to be held by the Group for a long time. |
19.Other non-current financial assets
None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
| Items | House, Building | Land use right | Construction in process | Total |
| I. Original price | ||||
| 1. Balance at period-beginning | 328,128,815.41 | 328,128,815.41 | ||
| 2.Increase in the current period | 185,000.00 | 185,000.00 | ||
| (1) Purchase | 185,000.00 | 185,000.00 | ||
| （2）Inventory\Fixed assets\ Transferred from construction in progress |
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 328,313,815.41 | 328,313,815.41 | ||
| II.Accumulated amortization | ||||
| 1.Opening balance | 201,812,980.65 | 201,812,980.65 | ||
| 2.Increased amount of the period | 4,528,957.27 | 4,528,957.27 | ||
| (1) Withdrawal | 4,528,957.27 | 4,528,957.27 | ||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 206,341,937.92 | 206,341,937.92 | ||
| III. Impairment provision | ||||
| 1. Balance at period-beginning | ||||
| 2.Increased amount of the period | ||||
| (1) Withdrawal | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | ||||
| IV. Book value | ||||
| 1.Book value at period -end | 121,971,877.49 | 121,971,877.49 | ||
| 2.Book value at period-beginning | 126,315,834.76 | 126,315,834.76 |
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
| Items | Book balance | Reason |
| Houses and Building | 8,032,003.12 | Unable to apply for warrants due to historical reasons |
21. Fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fixed assets | 2,133,290,574.66 | 2,240,221,656.36 |
| Total | 2,133,290,574.66 | 2,240,221,656.36 |
(1) List of fixed assets
In RMB
| Items | Houses & buildings | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1.Opening balance | 742,709,971.36 | 2,655,871,126.91 | 15,875,027.26 | 50,483,511.70 | 3,464,939,637.23 |
| 2.Increased amount of the period | 382,881.49 | 4,714,818.95 | 919,044.25 | 548,203.94 | 6,564,948.63 |
| (1) Purchase | 382,881.49 | 677,649.29 | 641,168.15 | 548,203.94 | 2,249,902.87 |
| (2) Transferred from construction in progress | 4,037,169.66 | 277,876.10 | 4,315,045.76 | ||
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | 28,887.08 | 337,730.89 | 366,617.97 | ||
| （1）Disposal | 28,887.08 | 337,730.89 | 366,617.97 | ||
| 4. Balance at period-end | 743,092,852.85 | 2,660,557,058.78 | 16,794,071.51 | 50,693,984.75 | 3,471,137,967.89 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 173,190,869.37 | 986,203,419.91 | 5,871,266.55 | 34,223,428.40 | 1,199,488,984.23 |
| 2.Increased amount of the period | 11,982,665.49 | 97,057,786.16 | 993,475.36 | 3,447,700.18 | 113,481,627.19 |
| (1) Withdrawal | 11,982,665.49 | 97,057,786.16 | 993,475.36 | 3,447,700.18 | 113,481,627.19 |
| 3.Decrease in the reporting period | 27,731.59 | 324,221.70 | 351,953.29 | ||
| （1）Disposal | 27,731.59 | 324,221.70 | 351,953.29 | ||
| 4.Closing balance | 185,173,534.86 | 1,083,233,474.48 | 6,864,741.91 | 37,346,906.88 | 1,312,618,658.13 |
| III. Impairment provision | |||||
| 1.Opening balance | 25,120,608.21 | 108,388.43 | 25,228,996.64 | ||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | 261.54 | 261.54 | |||
| （1）Disposal | 261.54 | 261.54 | |||
| 4. Closing balance | 25,120,608.21 | 108,126.89 | 25,228,735.10 | ||
| IV. Book value | |||||
| 1.Book value of the period-end | 557,919,317.99 | 1,552,202,976.09 | 9,929,329.60 | 13,238,950.98 | 2,133,290,574.66 |
| 2.Book value of the period-begin | 569,519,101.99 | 1,644,547,098.79 | 10,003,760.71 | 16,151,694.87 | 2,240,221,656.36 |
(2) Fixed assets temporarily idled
None
(3) Fixed assets rented by finance leases
None
(4) Fixed assets without certificate of title completed
None
（5）Liquidation of fixed assets
None
22. Construction in progress
In RMB
| Items | Year-end balance | Year-beginning balance |
| Construction in progress | 36,543,522.56 | 38,061,619.60 |
| Total | 36,543,522.56 | 38,061,619.60 |
(1) List of construction in progress
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Installation of machines and equipment | 36,543,522.56 | 0.00 | 36,543,522.56 | 38,061,619.60 | 0.00 | 38,061,619.60 |
| Total | 36,543,522.56 | 0.00 | 36,543,522.56 | 38,061,619.60 | 0.00 | 38,061,619.60 |
（2）Changes of significant construction in progress
None
（3）Impairment provision of construction projects
None
（4）Engineering material
None
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
| Items | House and Building | Total |
| 1. Balance at year beginning | ||
| 4. Year-end balance | 28,914,047.83 | 28,914,047.83 |
| 2. Increase at this period | 5,893,024.28 | 5,893,024.28 |
| Newly inversed | 5,893,024.28 | 5,893,024.28 |
| 3.Decreased amount of the period | 0.00 | 0.00 |
| 4. Balance at period-end | 34,807,072.11 | 34,807,072.11 |
| II. Accumulated depreciation | ||
| 1.Opening balance | 13,548,653.95 | 13,548,653.95 |
| 2.Increased amount of the period | 4,577,501.46 | 4,577,501.46 |
| (1) Withdrawal | 4,577,501.46 | 4,577,501.46 |
| 3.Decrease in the reporting period | ||
| （1）Disposal | 0.00 | 0.00 |
| 4.Closing balance | 18,126,155.41 | 18,126,155.41 |
| III. Impairment provision | ||
| 1.Opening balance | 0.00 | 0.00 |
| 2.Increase in the reporting period | 0.00 | 0.00 |
| （1）Withdrawal | 0.00 | 0.00 |
| 3.Decrease in the reporting period | ||
| （1）Disposal | 0.00 | 0.00 |
| 4. Closing balance | 0.00 | 0.00 |
| IV. Book value | ||
| 1.Book value of the period-end | 16,680,916.70 | 16,680,916.70 |
| 2.Book value of the period-begin | 15,365,393.88 | 15,365,393.88 |
26. Intangible assets
(1) Information
In RMB
| Items | Land use right | Patent right | Non-proprietary | Software | Total |
| technology | |||||
| I. Original price | |||||
| 1. Balance at period-beginning | 48,258,239.00 | 11,825,200.00 | 0.00 | 22,336,546.33 | 82,419,985.33 |
| 2.Increase in the current period | |||||
| (1) Purchase | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| （2）Internal R & D | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| （3）Increased of Enterprise Combination | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.Decreased amount of the period | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balance at period-end | 48,258,239.00 | 11,825,200.00 | 0.00 | 22,336,546.33 | 82,419,985.33 |
| II.Accumulated amortization | |||||
| 1. Balance at period-beginning | 15,274,148.35 | 11,825,200.00 | 11,128,065.03 | 38,227,413.38 | |
| 2. Increase in the current period | 445,782.66 | 0.00 | 0.00 | 2,026,293.06 | 2,472,075.72 |
| (1) Withdrawal | 445,782.66 | 0.00 | 0.00 | 2,026,293.06 | 2,472,075.72 |
| 3.Decreased amount of the period | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balance at period-end | 15,719,931.01 | 11,825,200.00 | 13,154,358.09 | 40,699,489.10 | |
| III. Impairment provision | |||||
| 1. Balance at period-beginning | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Increase in the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.Decreased amount of the period | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balance at period-end | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Book value | |||||
| 1.Book value at period -end | 32,538,307.99 | 0.00 | 0.00 | 9,182,188.24 | 41,720,496.23 |
| 2.Book value at period-beginning | 32,984,090.65 | 0.00 | 0.00 | 11,208,481.30 | 44,192,571.95 |
At the end of this period, the intangible assets formed through the company's internal research and developmentaccounted for 0.00% of the balance of intangible assets
(2) Details of fixed assets failed to accomplish certification of land use right
None
27. R&D expenses
None
28. Goodwill
(1) Original book value of goodwill
In RMB
| Items | Opening balance | Increase | Decrease | Closing balance | ||
| The merger of enterprises | disposition | |||||
| SAPO Photoelectric | 9,614,758.55 | 0.00 | 0.00 | 9,614,758.55 | ||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 0.00 | 0.00 | 2,167,341.21 | ||
| Total | 11,782,099.76 | 0.00 | 0.00 | 11,782,099.76 |
（2）Impairment of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Provision | disposition | |||||
| SAPO Photoelectric | 9,614,758.55 | 0.00 | 0.00 | 9,614,758.55 | ||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 0.00 | 0.00 | 2,167,341.21 | ||
| Total | 11,782,099.76 | 0.00 | 0.00 | 11,782,099.76 | ||
Information about an asset group or asset group portfolioNoneExplain the goodwill impairment test process, key parameters (such as forecast period growth rate at expectedfuture cash flow, stable period growth rate, profit margin, discount rate, forecast period, etc.) and theconfirmation method of goodwill impairment lossNoneImpact of the goodwill impairment testNone
29. Long term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Decoration and facilities renovation fee | 4,470,957.79 | 1,010,991.86 | 3,459,965.93 | ||
| Total | 4,470,957.79 | 1,010,991.86 | 3,459,965.93 |
30. Deferred income tax assets/Deferred income tax liabilities
(1) Uncompensated deferred income tax assets
In RMB
| Items | Balance in year-end | Balance in year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Asset impairment provision | 189,041,740.48 | 28,356,261.07 | 206,115,717.20 | 30,917,357.58 |
| Unrealized profit from | 2,190,520.68 | 328,578.10 | 2,235,077.97 | 335,261.70 |
| internal transactions | ||||
| Deductible loss | 107,459,166.10 | 16,115,579.51 | 90,052,078.73 | 13,397,964.96 |
| Credit loss provision | 73,083,485.00 | 12,342,262.52 | 65,076,915.43 | 11,372,802.27 |
| Deferred income | 103,811,720.34 | 15,571,758.05 | 116,768,810.33 | 17,515,321.55 |
| Changes in fair value of investment in other equity instruments | 14,831,681.50 | 3,707,920.38 | 14,831,681.50 | 3,707,920.38 |
| Employee compensation payable | 7,202,192.55 | 1,594,722.64 | 9,397,730.55 | 2,143,607.14 |
| Total | 497,620,506.65 | 78,017,082.27 | 504,478,011.71 | 79,390,235.58 |
(2)Details of the un-recognized deferred income tax liabilities
In RMB
| Items | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in fair value of investment in other equity instruments | 160,494,427.01 | 40,123,606.76 | 160,494,427.01 | 40,123,606.76 |
| The difference between the initial recognition cost of long-term equity investment and tax basis | 62,083,693.36 | 15,520,923.34 | 62,083,693.36 | 15,520,923.34 |
| Rent receivable | 8,689,653.64 | 2,172,413.41 | 7,584,635.96 | 1,896,158.99 |
| Total | 231,267,774.01 | 57,816,943.51 | 230,162,756.33 | 57,540,689.09 |
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
| Items | Trade-off between the deferred income tax assets and liabilities | End balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | -9,298,589.69 | 68,718,492.58 | -9,566,421.29 | 69,823,814.29 |
| Deferred income tax liabilities | -9,298,589.69 | 48,518,353.82 | -9,566,421.29 | 47,974,267.80 |
(4)Details of income tax assets not recognized
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Deductible temporary difference | 6,189,658.00 | 5,742,636.02 |
| Deductible loss | 463,254,123.12 | 464,226,095.10 |
| Total | 469,443,781.12 | 469,968,731.12 |
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
| Year | Balance in year-end | Balance in year-begin | Remark |
| 2024 | 74,265,351.74 | 79,132,962.34 | |
| 2025 | 16,680,938.23 | 16,680,938.23 | |
| 2026 | 128,597,715.91 | 128,597,715.91 | |
| 2027 | 16,173,145.07 | 12,155,889.69 |
| 2028 | 22,451,907.95 | 22,463,907.95 | |
| 2029 | 129,732,249.98 | 129,766,788.98 | |
| 2030 | 75,352,814.24 | 75,427,892.00 | |
| Total | 463,254,123.12 | 464,226,095.10 |
31 .Other non-current assets
In RMB
| Items | Balance in year-end | Balance in year-begin | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Prepayment for engineering and equipment | 14,492,289.46 | 0.00 | 14,492,289.46 | 16,792,930.20 | 0.00 | 16,792,930.20 |
| Investment funds to be liquidated | 25,760,086.27 | 0.00 | 25,760,086.27 | 25,760,086.27 | 0.00 | 25,760,086.27 |
| Total | 40,252,375.73 | 0.00 | 40,252,375.73 | 42,553,016.47 | 0.00 | 42,553,016.47 |
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Credit loans | 8,000,000.00 | 7,000,000.00 |
| Total | 8,000,000.00 | 7,000,000.00 |
Note：None
(2) Situation of Overdue Outstanding Short-Term Borrowing
The total amount of overdue short-term loans at the end of this period is in RMB 0.00, of which the importantoverdue short-term loans are as follows: None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
| Type | Balance in year-end | Balance in year-begin |
| Bank acceptance Bill | 15,284,993.54 | 0.00 |
| Total | 15,284,993.54 | 0.00 |
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Payment for goods | 408,449,533.79 | 304,916,368.65 |
| Service charge | 16,255,936.12 | 11,386,158.86 |
| Localities | 7,901,712.00 | 4,609,134.50 |
| Subcontracting payment | 2,170,315.29 | 3,970,214.14 |
| Others | 2,711,668.87 | 2,167,997.55 |
| Total | 437,489,166.07 | 327,049,873.70 |
(2) Significant advance from customers aging over one year
On June 30, 2023, the Company had no significant accounts payable with an aging of more than one year.
37.Advance account
(1) List of Advance account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Rent and other | 1,164,665.15 | 1,393,344.99 |
| Total | 1,164,665.15 | 1,393,344.99 |
(2) Significant advance from customers aging over one year
On June 30, 2023,the Company had no significant accounts payable with an aging of more than one year.
38.Contract liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Goods | 4,975,276.30 | 4,274,109.40 |
| Total | 4,975,276.30 | 4,274,109.40 |
Amount and reasons for the significant change in the book value during the reporting periodNone
39.Payable Employee wage
(1) List of Payroll payable
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| I. Short-term compensation | 60,940,432.90 | 129,088,042.66 | 132,984,150.88 | 57,044,324.68 |
| II.Post-employment benefits - defined contribution plans | 7,103,766.95 | 7,103,766.95 |
| Dismissal benefits | 226,012.00 | 334,223.86 | 336,765.26 | 223,470.60 |
| Total | 61,166,444.90 | 136,526,033.47 | 140,424,683.09 | 57,267,795.28 |
（2）Short-term remuneration
In RMB
| Items | Balance in year-begin | Increase in this period | Decrease in this period | Balance in year-end |
| 1.Wages, bonuses, allowances and subsidies | 57,472,981.87 | 115,273,963.12 | 119,127,683.37 | 53,619,261.62 |
| 2.Employee welfare | 29,185.44 | 4,206,521.68 | 4,235,707.12 | 0.00 |
| 3. Social insurance premiums | 0.00 | 3,013,562.59 | 3,013,562.59 | 0.00 |
| Including：Medical insurance | 0.00 | 2,107,846.75 | 2,107,846.75 | 0.00 |
| Work injury insurance | 0.00 | 160,521.32 | 160,521.32 | 0.00 |
| Maternity insurance | 0.00 | 219,350.79 | 219,350.79 | 0.00 |
| Other | 0.00 | 525,843.73 | 525,843.73 | 0.00 |
| 4. Public reserves for housing | 202,391.00 | 3,992,227.00 | 4,194,618.00 | 0.00 |
| 5.Union funds and staff education fee | 3,235,874.59 | 2,601,768.27 | 2,412,579.80 | 3,425,063.06 |
| Other | 60,940,432.90 | 129,088,042.66 | 132,984,150.88 | 57,044,324.68 |
（3）Defined contribution plans listed
In RMB
| Items | Balance in year-begin | Increase in this period | Decrease in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 0.00 | 5,633,933.03 | 5,633,933.03 | 0.00 |
| 2.Unemployment insurance | 0.00 | 140,977.99 | 140,977.99 | 0.00 |
| 3. Annuity payment | 0.00 | 1,328,855.93 | 1,328,855.93 | 0.00 |
| Total | 0.00 | 7,103,766.95 | 7,103,766.95 | 0.00 |
Other note
The Group participates in pension insurance and unemployment insurance plans established bygovernment agencies according to regulations, and according to the plans, the Group pays fees to these plansaccording to the prescribed standards. In addition to the above-mentioned monthly deposit fees, the Group willno longer assume further payment obligations. The corresponding expenses are included in the current profitsand losses or the related asset costs when incurred.The Company shall contribute RMB5,633,933.03 to the pension insurance plan and RMB140,977.99 to theunemployment insurance plan. As at 30 June 2023, the Company paid the full amount of pension insurance andunemployment insurance plans payable during the reporting period.
40.Tax Payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| VAT | 597,591.27 | 1,740,677.77 |
| Enterprise Income tax | 1,944,668.44 | 4,655,525.64 |
| Individual Income tax | 177,457.85 | 1,847,004.45 |
| Other | 3,313,523.49 | 654,104.65 |
| Total | 6,033,241.05 | 8,897,312.51 |
41.Other payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Other payable | 187,021,282.45 | 197,345,455.37 |
| Total | 187,021,282.45 | 197,345,455.37 |
（1）Interest payable
None
（2）Dividends payable
Other explanations, including significant dividends payable that have not been paid for more than 1 year, it shalldisclose the reasons for non-payment: None
(3) Other accounts payable
1） Other accounts payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Engineering Equipment fund | 80,153,167.17 | 83,337,092.31 |
| Unit account | 47,534,662.26 | 53,102,831.34 |
| Deposit | 32,910,156.52 | 45,628,573.39 |
| Other | 26,423,296.50 | 15,276,958.33 |
| Total | 187,021,282.45 | 197,345,455.37 |
2） Important other payables with an aging of more than 1 year
In RMB
| Items | Balance at the end of this year | Reasons for no payment or carry-over |
| Beijing CEEDI Engineering & Technology Co., Ltd. | 16,724,271.45 | The final payment settlement of the project has not been completed |
| Total | 16,724,271.45 |
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term due within one year | 100,024,512.50 | 97,182,080.19 |
| Lease liabilities due within one year | 7,465,519.14 | 7,001,358.03 |
| Total | 107,490,031.64 | 104,183,438.22 |
44.Other current liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Did not terminate the confirmation bill endorsement, discount | 40,032,610.22 | 48,387,401.67 |
| Return payable | 34,117,277.42 | 44,558,340.11 |
| Total | 74,149,887.64 | 92,945,741.78 |
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Guaranteed loan | 657,173,111.84 | 704,603,665.19 |
| Less: Long-term loans due within one year | 100,024,512.50 | 97,182,080.19 |
| Total | 557,148,599.34 | 607,421,585.00 |
Description of the long-term loan classificationSAPO Photoelectric, a subsidiary of the Company, mortgaged its real estate rights such as the factorybuilding, and the Company and Hangzhou Jinjiang Group Co., Ltd. provided 60% and 40% joint guarantee forthe loan respectively.
46.Bond payable
None
47. Lease liabilities
In RMB
| Items | Balance year-end | Year-beginning balance |
| lease liabilities | 17,823,282.59 | 15,630,030.74 |
| Less：Lease liabilities due within 1 year | 7,465,519.14 | 7,001,358.03 |
| Total | 10,357,763.45 | 8,628,672.71 |
48. Long-term payable
None
49. Long term payroll payable
None
50.Estimated liabilities
None
51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Government Subsidy | 117,814,796.10 | 8,628,497.04 | 21,689,214.87 | 104,754,078.27 | Government Subsidy |
| Total | 117,814,796.10 | 8,628,497.04 | 21,689,214.87 | 104,754,078.27 |
Details of government subsidies：
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other decrease | End of term | Asset-related or income-related |
| Production line subsidy | 80,986,810.31 | 8,628,497.04 | 10,368,087.03 | -2,500,000.00 | 76,747,220.32 | Asset-related | ||
| Equipment subsidy | 30,827,985.79 | 2,821,127.84 | 28,006,857.95 | Asset-related | ||||
| Material subsidy | 6,000,000.00 | 6,000,000.00 | 0.00 | Income-related |
52. Other non-current liabilities
None
53.Stock capital
In RMB
| Year-beginning balance | Changed（+，-） | Balance in year-end | |||||
| Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | |||
| Total of capital shares | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 506,521,849.00 |
54. Other equity instruments
None
55. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 1,826,482,608.54 | 0.00 | 0.00 | 1,826,482,608.54 |
| Other capital reserves | 135,117,216.09 | 0.00 | 0.00 | 135,117,216.09 |
| Total | 1,961,599,824.63 | 0.00 | 0.00 | 1,961,599,824.63 |
56.Treasury stock
None
57. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | |||||
| Amount incurred before income tax | Less：Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| 1. Other comprehensive income that cannot be reclassified in the loss and gain in the future | 108,584,344.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 108,584,344.77 |
| Changes in fair value of investments in other equity instruments | 108,584,344.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Other comprehensive income to be reclassified into profit or loss | 1,012,264.54 | 352,684.20 | 0.00 | 0.00 | 0.00 | 233,590.80 | 119,093.40 | 1,245,855.34 |
| Changes in fair value of receivables financing | -178,640.10 | 297,733.50 | 0.00 | 0.00 | 0.00 | 178,640.10 | 119,093.40 | 178,640.10 |
| Translation difference of foreign currency financial statements | 1,190,904.64 | 54,950.70 | 0.00 | 0.00 | 0.00 | 54,950.70 | 0.00 | 1,245,855.34 |
| Total of other comprehensive | 109,596,609.31 | 352,684.20 | 0.00 | 0.00 | 0.00 | 233,590.80 | 119,093.40 | 109,830,200.11 |
income
58. Special reserves
None
59. Surplus reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 100,909,661.32 | 0.00 | 0.00 | 100,909,661.32 |
| Total | 100,909,661.32 | 0.00 | 0.00 | 100,909,661.32 |
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in thereporting period: None
60. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | 170,636,610.95 | 125,317,336.31 |
| Retained earnings after adjustments at the year end | 170,636,610.95 | 125,317,336.31 |
| Add: Net profit attributable to owners of the Company for the period | 36,307,162.97 | 73,309,182.94 |
| Less：Statutory surplus reserve | 0.00 | 2,663,815.85 |
| Common stock dividend payable | 30,391,310.94 | 25,326,092.45 |
| Retained profits at the period end | 176,552,462.98 | 170,636,610.95 |
As regards the details of adjusted the beginning undistributed profitsNone
61. Business income, Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,470,203,939.11 | 1,286,170,472.71 | 1,425,009,759.63 | 1,240,002,222.92 |
| Other business | 19,891,730.44 | 0.00 | 20,127,549.46 | 2,985,871.14 |
| Total | 1,490,095,669.55 | 1,286,170,472.71 | 1,445,137,309.09 | 1,242,988,094.06 |
Income-related information:
In RMB
| Product type | Polarizer | Property leasing and management | Textile | Total |
| Product | 1,412,410,148.66 | 56,093,359.66 | 21,592,161.23 | 1,490,095,669.55 |
| Including | ||||
| Polarizer | 1,412,410,148.66 | 1,412,410,148.66 | ||
| Property leasing and management | 56,093,359.66 | 56,093,359.66 |
| Textile | 21,592,161.23 | 21,592,161.23 | ||
| Area | 1,412,410,148.66 | 56,093,359.66 | 21,592,161.23 | 1,490,095,669.55 |
| Including | ||||
| Domestic | 1,361,868,120.05 | 56,093,359.66 | 9,702,693.10 | 1,427,664,172.81 |
| Overseas | 50,542,028.61 | 0.00 | 11,889,468.13 | 62,431,496.74 |
| Total | 1,412,410,148.66 | 56,093,359.66 | 21,592,161.23 | 1,490,095,669.55 |
Description of performance obligations
The Group's goods sales are mainly the production and sales of polarizer and textile-related goods. For goodssold to customers, the Group recognizes income when the control of the goods is transferred, that is, when thegoods are delivered to the designated place of the other party and signed by the other party. Since the delivery ofgoods to customers represents the right to unconditionally receive the contract consideration, the maturity of themoney only depends on the passage of time, so the Group recognizes a receivable when the goods are delivered toprofessional customers. When the customer prepays the payment, the Group recognizes the transaction amountreceived as a contractual liability until the goods are delivered to the customer.The Company provides property and leasing services to customers, which is a performance obligation to befulfilled within a certain period of time. The Group recognizes income in the process of providing property andleasing services.Information related to the transaction price apportioned to the residual performance obligation:
On June 30, 2023, The amount of revenue corresponding to performance obligations of contracts signed but notperformed or not fully performed yet was 4,975,276.30 Yuan at the period-end, among which RMB4,975,276.30 Yuan was expected to be recognized in 2023.The amount of revenue corresponding to performance obligations of contracts signed but not performed ornot fully performed yet was RMB1,867,398.72 at the period-end, among which RMB 1,867,398.72 wasexpected to be recognized in 2023, RMB 0 was expected to be recognized in 2024. RMB 0 was expected to berecognized in 2025.
62.Taxes and surcharges
In RMB
| Items | Amount of current period | Amount of previous period |
| Property tax | 2,918,264.56 | 2,911,689.84 |
| Stamp tax | 794,946.41 | 829,848.83 |
| Urban construction tax | 280,887.35 | 193,493.65 |
| Education surcharge | 204,444.12 | 133,269.00 |
| Land use tax | 188,021.08 | 97,737.54 |
| vehicle and vessel usage tax | 4,200.00 | 1,440.00 |
| Other | 6,566.26 | 3,883.32 |
| Total | 4,397,329.78 | 4,171,362.18 |
63.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Employee compensation | 10,230,501.01 | 9,765,028.00 |
| Sales service charge | 3,893,275.02 | 5,791,774.85 |
| Other | 1,154,529.29 | 922,396.04 |
| Business entertainment | 481,984.21 | 734,977.55 |
| Travel expenses | 390,639.14 | 444,372.70 |
| Exhibition fee | 288,544.63 | 697,198.25 |
| Total | 16,439,473.30 | 18,355,747.39 |
64. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 44,414,164.48 | 40,666,351.70 |
| Depreciation of fixed assets | 5,553,209.06 | 7,296,978.02 |
| Water and electricity | 2,328,829.65 | 2,713,713.93 |
| Intermediary organ | 4,330,104.04 | 2,701,374.70 |
| Intangible assets amortization | 2,472,075.72 | 2,514,696.45 |
| Travel expenses | 224,064.04 | 131,833.96 |
| Office expenses | 449,240.06 | 362,061.20 |
| Business entertainment | 746,448.25 | 729,775.83 |
| Other | 4,781,274.52 | 4,331,403.07 |
| Tax | 65,299,409.82 | 61,448,188.86 |
65.R & D costs
In RMB
| Items | Amount of current period | Amount of previous period |
| Material | 25,540,854.61 | 23,286,446.67 |
| Wage | 8,292,440.77 | 8,566,206.98 |
| Depreciation | 1,686,985.39 | 1,908,863.88 |
| Fuel & Power | 446,284.09 | 473,821.67 |
| Travel expenses | 19,400.94 | 45,732.13 |
| Other | 18,222.82 | 589,921.33 |
| Total | 36,004,188.62 | 34,870,992.66 |
66.Financial Expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 13,965,081.41 | 15,882,534.27 |
| Interest income | -5,318,571.16 | -773,863.34 |
| Exchange loss | -7,582,000.80 | -27,366,911.14 |
| Fees and other | 3,114,986.18 | 3,424,366.77 |
| Total | 4,179,495.63 | -8,833,873.44 |
67.Other income
In RMB
| Items | Amount of current period | Amount of previous period |
| Govemment Subsidy | 19,369,307.55 | 10,780,654.48 |
68. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment returns accounted for by equity method | -2,111,260.03 | 1,658,532.04 |
| Investment income of transactional financial assets during the holding period | 8,948,614.72 | 8,967,680.80 |
| Dividend income earned during investment holdings in other equity instruments | 906,000.00 | 708,000.00 |
| Other | -291,040.32 | |
| Total | 7,743,354.69 | 11,043,172.52 |
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
None
71. Credit impairment loss
In RMB
| Items | Amount of this period | Amount of last period |
| Loss of bad debts in other receivables | 383,523.90 | 6,951,880.47 |
| Loss of bad note receivable | 0.00 | 291,096.44 |
| Loss of bad accounts receivable | -9,052,893.75 | -10,228,230.44 |
| Total | -8,669,369.85 | -2,985,253.53 |
72. Losses from asset impairment
In RMB
| Items | Amount of current period | Amount of previous period |
| II. Loss of inventory price and Impairment of contract performance costs | -35,512,897.29 | -42,073,672.20 |
| Total | -35,512,897.29 | -42,073,672.20 |
73. Asset disposal income
In RMB
| Items | Amount of current period | Amount of previous period |
| Gains& losses on the disposal of fixed assets | 321.08 | -11,114.72 |
74. Non-Operation income
In RMB
| Items | Amount of current period | Amount of previous period | Recorded in the amount of the non-recurring gains and losses |
| Supplier compensation | 71,816.74 | 1,615,000.00 | 71,816.74 |
| Payable without payment | 0.00 | 78,644.95 | 0.00 |
| Other | 329,571.05 | 74,470.10 | 329,571.05 |
| Total | 401,387.79 | 1,768,115.05 | 401,387.79 |
Government subsidies recorded into current profits and losses： None
75.Non-current expenses
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Compensation expenses | 3,009,886.86 | 0.00 | 3,009,886.86 |
| Non-current asset Disposition loss | 8,807.87 | 10,885.38 | 8,807.87 |
| Other | 18,886.32 | 202,204.91 | 18,886.32 |
| Total | 3,037,581.05 | 213,090.29 | 3,037,581.05 |
76.Income tax expenses
(1)Income tax expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 4,063,609.65 | 16,930.91 |
| Deferred income tax expense | 1,649,407.73 | 323,966.90 |
| Total | 5,713,017.38 | 340,897.81 |
(2)Reconciliation of account profit and income tax expenses
In RMB
| Items | Amount of current period |
| Total profits | 57,899,822.61 |
| Income tax expenses calculated at the applicable tax rate | 14,474,955.65 |
| Influence of different tax rates applied by some subsidiaries | -2,763,593.41 |
| Income not subject to tax | 299,238.91 |
| Non-deductible costs, expenses and losses | 3,425.00 |
| Tax impact by the unrecognized deductible losses and deductible temporary differences in previous years | -17,279.47 |
| Tax impact of unrecognized deductible losses and deductible temporary differences | -883,101.00 |
| Tax impact of research and development fee plus deduction | -5,400,628.30 |
| Income tax expense | 5,713,017.38 |
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Current account and other | 59,933,695.82 | 120,535,575.04 |
| Government Subsidy | 8,752,204.09 | 13,883,551.50 |
| Letter of Credit Deposit | 8,087,465.25 | 152,041,095.07 |
| Interest income（Not including financing product） | 1,221,464.54 | 559,472.02 |
| Total | 77,994,829.70 | 287,019,693.63 |
Note to other cash received in connection with operating activities: None
(2)Other cash paid related to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Current account and other | 67,303,982.70 | 37,548,518.13 |
| Letter of Credit Deposit | 10,788,695.79 | 11,655,819.11 |
| Total | 78,092,678.49 | 49,204,337.24 |
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Structured deposits, financial products, principal and income | 195,000,000.00 | 635,000,000.00 |
| Total | 195,000,000.00 | 635,000,000.00 |
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Purchase of financial management, structured deposit and investment | 631,537,000.00 | 650,000,001.00 |
| Total | 631,537,000.00 | 650,000,001.00 |
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
None
（6）Cash paid related with financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Lease payment | 4,141,770.57 | 0.00 |
| Total | 4,141,770.57 | 0.00 |
Note to other Cash paid related with financing activities： None
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities |
| Net profit | 52,186,805.23 | 70,104,710.88 |
| Add: Impairment loss provision of assets | 44,182,267.14 | 45,058,925.73 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 113,129,673.90 | 70,459,401.36 |
| Depreciation of Use right assets | 4,577,501.46 | 4,303,599.85 |
| Amortization of intangible assets | 2,472,075.72 | 460,596.04 |
| Amortization of Long-term deferred expenses | 1,010,991.86 | 674,121.16 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | -321.08 | 11,114.72 |
| Fixed assets scrap loss | 0.00 | 0.00 |
| Loss on fair value changes | 0.00 | 0.00 |
| Financial cost | -9,785,585.78 | -8,833,873.44 |
| Loss on investment | -7,387,354.69 | -11,043,172.52 |
| Decrease of deferred income tax assets | 1,105,321.71 | 43,628.11 |
| Increased of deferred income tax liabilities | 544,086.02 | 97,374.65 |
| Decrease of inventories | -140,167,792.05 | -113,943,401.07 |
| Decease of operating receivables | -172,947,643.53 | -74,703,894.32 |
| Increased of operating Payable | 125,482,947.69 | 96,749,103.44 |
| Other | 0.00 | 0.00 |
| Net cash flows arising from operating activities | 14,402,973.60 | 79,438,234.59 |
| II. Significant investment and financing activities that without cash flows: | ||
| Conversion of debt into capital | 0.00 | 0.00 |
| Convertible corporate bonds maturing within one year | 0.00 | 0.00 |
| Financing of fixed assets leased | 0.00 | 0.00 |
| III .Movement of cash and cash equivalents： | ||
| Ending balance of cash | 345,683,735.99 | 348,660,980.95 |
| Less: Beginning balance of cash equivalents | 874,474,834.46 | 302,408,433.72 |
| Add：End balance of cash equivalents | 0.00 | 0.00 |
| Less: Beginning balance of cash equivalents | 0.00 | 0.00 |
| Net increase of cash and cash equivalent | -528,791,098.47 | 46,252,547.23 |
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
| Items | Year-end balance | Year-beginning balance |
| I. Cash | 345,683,735.99 | 874,474,834.46 |
| Including：Cash at hand | 2,231.43 | 3,980.56 |
| Demand bank deposit | 345,681,504.56 | 874,470,853.90 |
| III. Balance of cash and cash equivalents at the period end | 345,683,735.99 | 874,474,834.46 |
80. Note of statement of changes in the owner's equity
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year: None
81. The assets with the ownership or use right restricted
In RMB
| Items | Book value at the end of the reporting period | Cause of restriction |
| Monetary fund | 270,542,231.07 | CD + structured deposit + time deposit + bank draft margin |
| Bill receivable | 40,032,610.22 | Endorsed but not yet due bank acceptance bills |
| Fixed assets | 462,070,010.10 | Mortgage |
| Intangible assets | 32,542,134.43 | Mortgage |
| Total | 805,186,985.82 |
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Items | Closing foreign currency balance | Exchange rate | Closing convert to RMB balance |
| Monetary funds | 9,451,451.89 | ||
| Including：USD | 1,235,678.45 | 7.2258 | 8,928,765.34 |
| HKD | 66,465.00 | 0.9220 | 61,280.73 |
| Yen | 9,209,697.00 | 0.0501 | 461,405.82 |
| Account payable | 37,405,548.36 | ||
| Including：USD | 5,141,157.27 | 7.2258 | 37,148,974.20 |
| HKD | 278,280.00 | 0.9220 | 256,574.16 |
| Other receivable | 509,611.25 | ||
| Including：USD | 70,526.62 | 7.2258 | 509,611.25 |
| Account payable | 331,640,814.19 | ||
| Including：USD | 8,752,201.63 | 7.2258 | 63,241,658.54 |
| Yen | 5,355,607,174.00 | 0.0501 | 268,315,919.42 |
| HKD | 90,277.91 | 0.9220 | 83,236.23 |
| Other payable | 5,264,875.32 | ||
| Including：USD | 676,686.00 | 7.2258 | 4,889,597.70 |
| Yen | 3,381,984.00 | 0.0501 | 169,437.40 |
| Euro | 22,500.00 | 7.8771 | 177,234.75 |
| HKD | 31,025.46 | 0.9220 | 28,605.47 |
(2) Note to overseas operating entities, including important overseas operating entities, witch should bedisclosed about its principal business place, function currency for bookkeeping and basis for the choice.In case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitragedrisk qualitative and quantitative information: None
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
| Items | Amount | Project | Amount included in current profit and loss |
| Production line subsidy | 76,747,220.32 | Deferred income | 10,368,087.03 |
| Equipment subsidy | 28,006,857.95 | Deferred income | 2,821,127.84 |
| Material subsidy | 0.00 | Deferred income | 6,000,000.00 |
| Other | 180,092.68 | Deferred income | 180,092.68 |
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
NoneVIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
None
(2) Combined cost and goodwill
None
(3) The identifiable assets and liabilities of acquiree at purchase date
None
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair valuemeasured again、Whether there is a transaction that through multiple transaction step by step to realize enterprises merger andgaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value ofliabilities of the acquiree at acquisition date or closing period of the mergeNone
(6) Other note:
None
2. Business combination under the same control
(1) Business combination under the same control during the reporting periodNone
(2) Combination cost
None
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
None
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilitiesof the listed companies whether constituted a business and its basis, the determination of the combination costs,the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.None
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.) caused byother reasons and relevant information:
None
6.Other
None
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Lishi Industry Development Co., Ltd | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| Shenzhen Huaqiang Hotel | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| Shenfang Property Management Co., Ltd. | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| Shenzhen Beauty Century Garment Co., Ltd. | Shenzhen | Shenzhen | Production of fully electronic jacquard knitting whole shape | 100.00% | Establish | |
| Shenzhen Shenfang Sungang Property Management Co., Ltd. | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| SAPO Photoelectric | Shenzhen | Shenzhen | Polarizer production and sales | 60.00% | Establish | |
| Shengtou (Hongkong) Co.,Ltd. | Hongkong | Hongkong | Production and sales of polarizer | 100.00% | Establish | |
| Shenzhen Shengjinlian Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales of polarizer | 100.00% | Establish | |
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: NoneBasis for holding half or less voting rights but still controlling the investee, and holding more than half votingrights but not controlling the investee: NoneFor the important structured subjects included in the scope of consolidation, the control basis is: NoneBasis for determining whether the company is an agent or a principal: NoneOther note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
| Name | Holding proportion of non-controlling interest | Profit or loss attributable to non-controlling interest | Dividend declared to non-controlling interest | Closing balance of non-controlling interest |
| SAPO Photoelectric | 40.00% | 15,879,642.26 | 0.00 | 1,197,776,505.87 |
Other note：None
（3）Main financial information of significant not wholly-owned subsidiariesIn RMB
| Subsidiaries | Closing balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | |
| SAPO Photoelectric | 2,126,220,719.76 | 2,307,463,780.40 | 4,433,684,500.16 | 773,285,887.90 | 671,318,083.13 | 1,444,603,971.03 | 1,936,541,263.47 | 2,419,432,602.01 | 4,355,973,865.48 | 674,071,107.48 | 732,819,068.02 | 1,406,890,175.50 |
In RMB
| Subsidiaries | Current term | Last term | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
| SAPO Photoelectric | 1,417,425,087.50 | 39,699,105.65 | 39,996,839.15 | 13,933,905.32 | 1,390,584,901.04 | 69,177,964.44 | 69,177,964.44 | 80,837,844.34 |
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debtNone
(5) Provide financial support or other support for structure entities incorporate into the scope ofconsolidated financial statementsNone
2. The transaction of the Company with its owner’s equity share changed but still controlling thesubsidiary
(1) Note to owner’s equity share changed in subsidiary
None
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equityof the parent companyNone
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | The accounting treatment of investment in associates | |
| direct | indirect | |||||
| Shenzhen Guanhua Printing & | Shenzhen | Shenzhe | Property | 50.16% | 0.00% | Equity method |
| Dyeing Co., Ltd | n | leasing |
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the votingright ratio: NoneBasis for holding less than 20% of voting rights but with significant influence, or holding 20% or more ofvoting rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Current assets | 47,559,682.42 | 47,899,181.48 |
| Including： Cash and cash equivalent | ||
| Non-current assets | 210,047,689.01 | 217,362,821.36 |
| Total assets | 257,607,371.43 | 265,262,002.84 |
| Current liabilities | 14,418,070.32 | 16,619,409.76 |
| Non-current liabilities | 31,942,467.19 | 33,025,262.69 |
| Total liabilities | 46,360,537.51 | 49,644,672.45 |
| Minority equity | ||
| Attributable to shareholders of the parent company | 211,246,833.92 | 215,617,330.39 |
| Share of net assets calculated by stake | 105,961,411.89 | 108,153,652.92 |
| Adjustment items | ||
| -- Goodwill | 21,595,462.44 | 21,595,462.44 |
| -- Internal transactions did not achieve profit | ||
| --Other | -242,823.92 | -242,843.60 |
| Book value of equity investment in joint ventures | 127,314,050.41 | 129,506,271.76 |
| The fair value of the equity investment of a joint venture with a public quotation | ||
| Operating income | 4,366,254.94 | 10,946,554.54 |
| Financial expenses | -89,049.09 | -135,801.19 |
| Income tax expenses | -902,781.76 | -717,712.93 |
| Net profit | -4,370,457.23 | 2,617,456.35 |
| Net profit from terminated operations | ||
| Other comprehensive income | ||
| Total comprehensive income | -4,370,457.23 | 2,617,456.35 |
| Dividends received from joint ventures for this year | 0.00 | 0.00 |
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Associated enterprise |
| Total book value of investment | 4,952,342.73 | 4,975,563.98 |
| Total of the following items calculated by shareholding ratio | ||
| -Net profit | 26,010.62 | 269,859.91 |
| -Other comprehensive income | 54,950.70 | 75,756.02 |
| -Total comprehensive income | 80,961.32 | 345,615.93 |
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer fundsto the CompanyNone
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investmentNone
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statementsNone
6.Other
NoneX. Risks related to financial instruments
The Company's main financial instruments include monetary funds, transactional financial assets, notesreceivable, accounts receivable, accounts receivable financing, other receivables, other equity instrumentsinvestment, short-term loans, accounts payable, other payables, other current liabilities, long-term loans andlease liabilities, etc. At the end of this year, the financial instruments held by the Group are as follows. See Note(VII) for details. The risks associated with these financial instruments and the risk management policies adoptedby the Group to reduce these risks are as follows. The management of the Group manages and monitors theserisk exposures to ensure that the above risks are controlled within a limited range.
1. Risk management objectives and policies
The Group's goal in risk management is to strike a proper balance between risks and benefits, reduce thenegative impact of risks on the Group's operating performance to the lowest level, and maximize the interests ofshareholders and other equity investors. Based on this risk management goal, the basic strategy of the Group's risk
management is to identify and analyze all kinds of risks faced by the Group, establish an appropriate risktolerance bottom line and conduct risk management, and timely and reliably supervise all kinds of risks to controlthe risks within a limited range.
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreignexchange risks are mainly related to US dollars, Japanese yen, Hong Kong dollars and Euros. Except for someimport purchases and export sales of the Group's companies located in Chinese mainland which are mainly settledin US dollars, Japanese yen, Hong Kong dollars and Euros, other major business activities of the Group are settledin RMB.As of 30 June 2023, the Company's assets and liabilities were all RMB balances, except for the monetaryitems in foreign currencies mentioned in Notes (VII), (82). The foreign exchange risks arising from the assets andliabilities with foreign currency balances (converted into RMB) described in the table below may have an impacton the Group's operating results.
| Items目 | Balance at the end of this year | |
| Assets | Liabilities | |
| USD | 46,587,350.79 | 68,131,256.24 |
| Yen | 461,405.82 | 268,485,356.82 |
| Euro | 0.00 | 177,234.75 |
| HKD | 317,854.89 | 111,841.70 |
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk.
Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedgingof overseas operations are highly effective.
On the basis of the above assumptions, with other variables unchanged, the pre-tax impact of possiblereasonable exchange rate changes on current profits and losses and shareholders' equity is as follows:
In RMB
| Items | Changes in exchange rate | This year | |
| Impact on profits | Impact on shareholders' equity | ||
| All foreign currencies | Appreciation of RMB by 5% | -14,476,953.90 | -14,476,953.90 |
| All foreign currencies | Depreciation of RMB by 5% | 14,476,953.90 | 14,476,953.90 |
1.1.2. Interest rate risk - risk of cash flow change
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainlyrelated to bank loans with floating interest rate. The Group continues to pay close attention to the impact ofinterest rate changes on the Group's interest rate risk. The Group's policy is to maintain floating interest rates onthese loans, and there is no interest rate swap arrangement at present.Sensitivity analysis of interest rate riskWith other variables unchanged, the pre-tax impact of possible reasonable interest rate changes on current profitsand losses and shareholders' equity is as follows:
In RMB
| Items | Interest rate change | This year | |
| Impact on profits | Impact on shareholders' equity | ||
| Floating-rate loan | Increase by 1% | -6,571,731.12 | -6,571,731.12 |
| Floating-rate loan | Decrease by 1% | 6,571,731.12 | 6,571,731.12 |
1.2. Credit risk
On June 30,2023, the largest credit risk exposure that may cause the Company's financial losses mainly camefrom the loss of the Company's financial assets caused by the failure of the other party to the contract, includingmonetary funds, transactional financial assets, notes receivable, accounts receivable, receivables financing and
other receivables. On the balance sheet date, the book value of the Company's financial assets has represented itsmaximum credit risk exposure.In order to reduce the credit risk, the Company arranges special personnel to determine the credit limit, conductcredit approval and implement other monitoring procedures to ensure that necessary measures are taken to recoveroverdue debts. In addition, the Group reviews the recovery of financial assets on each balance sheet date to ensurethat sufficient credit loss provision has been made for relevant financial assets. Therefore, the management of theCompany believes that the credit risk assumed by the Company has been greatly reduced.The Company's monetary funds are deposited in banks with high credit ratings, so the monetary funds only havelow credit risk.On June 30, 2023, the balance of accounts receivable of the Company to the top five customers was RMB
497,273,412.84, accounting for 54.54% of the balance of accounts receivable of the Company. In addition, the
Company has no other significant credit risk exposure concentrated in a single financial asset or financial assetportfolio with similar characteristics.
1.3 Liquidity risk
When managing liquidity risk, the Company maintains sufficient cash and cash equivalents as deemed by themanagement and monitors them to meet the Company's business needs and reduce the impact of cash flowfluctuations. The management of the Company monitors the use of bank loans and ensures compliance with theloan agreement.On June 30, 2023, the Group's unused comprehensive bank credit line was RMB 70,861.00.The financial liabilities held by the Company are analyzed according to the maturity of the undiscountedremaining contractual obligations as follows:
In RMB
| Item | Within 1 year | 1-5 years | Over 5 years | Total |
| Short-term loan | 8,151,016.67 | 0.00 | 0.00 | 8,151,016.67 |
| Accounts payable | 437,489,166.07 | 0.00 | 0.00 | 437,489,166.07 |
| Other payables | 187,021,282.45 | 0.00 | 0.00 | 187,021,282.45 |
| Other current liabilities | 74,149,887.64 | 0.00 | 0.00 | 74,149,887.64 |
| Long-term loans | 100,024,512.50 | 594,693,456.05 | 86,935,756.48 | 781,653,725.03 |
| Lease liabilities | 7,465,519.14 | 10,357,763.45 | 17,823,282.59 |
2. Transfer of financial assets
2.1 Financial assets that have been transferred but have not been derecognized as a whole
On June 30, 2023, the book value of bank acceptance bills endorsed by the Company to suppliers forsettlement of accounts payable was RMB 40,032,610.22. The Company believes that almost all risks and rewardsrelated to notes receivable at the time of endorsement have not been transferred, which does not meet theconditions for derecognition of financial assets. Therefore, the related notes receivable have not beenderecognized as a whole on the endorsement date.
2.2 Derecognition has been made as a whole, but the transferor continues to be involved in the transferredfinancial assets
The Company endorses the bank acceptance bills held by large state-owned commercial banks with highcredit rating and listed national joint-stock commercial banks to a third party. As almost all the risks and rewardsrelated to the bank acceptance bills have been transferred to the banks, the Company derecognizes the endorsedand unexpired bank acceptance bills. According to the relevant provisions of the Negotiable Instruments Law ofthe People's Republic of China, if the bank acceptance bill fails to be paid and accepted at maturity, the endorseehas the right to require the Company to pay off the outstanding balance, so the Company continues to be involvedin the endorsed bank acceptance bill. On June 30, 2023, the unexpired bank acceptance bill endorsed by theCompany was RMB 54,533,024.39.
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
| Items | Year-end fair value | |||
| Fair value measurement of Level 1 | Fair value measurement of Level 2 | Fair value measurement of Level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (1) Transactional Financial Asset | 0.00 | 613,554,063.16 | 0.00 | 613,554,063.16 |
| (II) Receivable financing | 0.00 | 0.00 | 22,863,088.36 | 22,863,088.36 |
| （III) Other equity instrument investment | 0.00 | 0.00 | 167,678,283.27 | 167,678,283.27 |
| Total liabilities measured at fair value on a non-ongoing basis | 0.00 | 613,554,063.16 | 190,541,371.63 | 804,095,434.79 |
| II Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
None
3. Items measured based on the continuous or uncontinuous level 2nd fair value, valuation technique asused, nature of important parameters and quantitative information
| Items | Fair value at the end of this year | Valuation technique | Input value |
| Transactional financial assets | 613,554,063.16 | Discounted cash flow technique | Expected yield |
4. Items measured based on the continuous or uncontinuous level 3rd fair value, valuation technique asused, nature of important parameters and quantitative information
| Items | Fair value at the end of this year | Valuation technique | Input value |
| Receivable financing | 22,863,088.36 | Discounted cash flow technique | Discount rate |
| Investment in other equity instruments | 167,678,283.27 | Comparison of listed companies | P/B ratio of similar listed companies |
| Comparable income method | Market price |
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing book value of consistent fair value measurement items at level 3None
6. Explain the reason for conversion and the policy governing when the conversion happens if conversionhappens among consistent fair value measurement items at different levelsNone
7. Changes in the valuation technique in the current period and the reason for changeNone
8. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include monetary funds, notes receivable,accounts receivable, other receivables, short-term loans, accounts payable, other payables, long-term loans andlease liabilities.
The management of the Company believes that the book values of financial assets and financial liabilitiesmeasured in amortized cost in the financial statements are close to their fair values.
9.Other
NoneXII. Related parties and related party transactions
1. Information about the parent company of the Enterprise.
| Name of parent company | Place of registration | Business nature | Registered capital | Shareholding ratio of the parent company to the Company % | Percentage of voting rights of the parent company to the Company % |
| Shenzhen Investment Holdings Co., Ltd | 18/F, Investment Building, Shennan Road, Futian District, Shenzhen | Equity investment, real estate development, etc | 32,359,000,000.00 | 46.21% | 46.21% |
Description of the parent company of the EnterpriseThe parent company of the Company is a wholly state-owned company approved and authorized by theShenzhen Municipal Government, and exercises the investor function for the state-owned enterprises within theauthorized scope according to law. The registered capital of the parent company is increased to 32.359 billionyuan after being approved by resolution of the board of directors, but the industrial and commercial change isyet not completed.Therefore, the Company’s ultimate controller is Shenzhen Investment Holdings Co., Ltd.
2.Subsidiaries of the Company
Details refer to the Note X-9, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the CompanyDetails refer to the Note X-9, Interests in joint ventures or associatesInformation on other joint venture and associated enterprise of occurring related party transactions with theCompany in reporting period, or form balance due to related party transactions in previous period:
None
4.Other Related parties information
| Other related party | Relationship to the Company |
| Shenzhen Xinfang Knitting Co., Ltd. | The Company's shareholding company and the chairman of the company are the employees of the Company |
| Shenzhen Dailishi Underwear Co., Ltd. | The Company's shareholding company and the chairman of the company are the employees of the Company |
| Hengmei Photoelectric Co., Ltd. | The controlling party of SAPO Shareholder |
| Shenzhen Shentou Property Development Co., Ltd. | A wholly-owned subsidiary of the parent company |
| Shenzhen Investment Building Hotel Co., Ltd. | A wholly-owned subsidiary of the parent company A wholly-owned - subsidiary of the parent company |
| A wholly-owned subsidiary of the parent company A wholly-owned subsidiary of the parent company | |
| Shenzhen SEG Longyan Energy Technology Co., Ltd. | A wholly-owned subsidiary of the parent company A wholly-owned subsidiary of the parent company |
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
| Related party | Content | Occurred current term | Trading limit approved | Over the trading limit or not | Occurred in previous term |
| Shenzhen SEG Longyan Energy Technology Co., Ltd. | Buy electricity | 540,788.97 | 1,600,000.00 | No | 0.00 |
| Hengmei Photoelectric Co., Ltd. | Buy optical film | 3,680,715.63 | 15,000,000.00 | Mo | 0.00 |
| Hengmei Photoelectric Co., Ltd. | Buy RTP OEM services | 834,265.74 | 14,000,000.00 | No | 0.00 |
Sale of goods
In RMB
| Related party | Content of related party transaction | Amount incurred this year | Amount incurred last year |
| Hengmei Photoelectric Co., Ltd. | Polarizer | 4,744,631.12 | 0.00 |
| Shenzhen Shentou Property Development Co., Ltd. | Textile | 54,991.15 | 0.00 |
| Shenzhen Investment Building Hotel | Textile | 40,614.16 | 0.00 |
| Co., Ltd. | |||
| Shenzhen Investment Building Property Management Co., Ltd. | Textile | 26,247.79 | 0.00 |
| Shenzhen Investment Holdings Co., Ltd | Textile | 15,371.68 | 0.00 |
Related transactions on sale goods and receiving servicesNone
(2) Related trusteeship/contract
None
(3) Information of related lease
None
(4) Related-party guarantee
None
(5) Inter-bank lending of capital of related parties：
In RMB
| Related party | Amount | Start date | Expiring date | Note |
| Borrowing fund： | ||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 3,806,454.17 | July 30,2019 | July 30,2023 | The annual lending interest rate is 0.30% |
| Loaned | ||||
(6) Related party asset transfer and debt restructuring
None
(7) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
| Rewards for the key management personnel | 2,653,076.00 | 3,523,165.00 |
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Balance of Book | Balance of Book | Bad debt Provision | ||
| Account receivable | Shenzhen Investment Holdings Co., Ltd | 17,370.00 | 0.00 | 0.00 | 0.00 |
| Other Account receivable | Shenzhen Dailishi Underwear Co., Ltd. | 550,000.00 | 27,500.00 | 1,100,000.00 | 58,850.00 |
（2）Payables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning |
| Other payable | Yehui International Co.,Ltd. | 1,124,656.60 | 1,124,656.60 |
| Other payable | Shenzhen Changlianfa Printing & dyeing Co., Ltd. | 2,023,699.95 | 2,023,699.95 |
| Other payable | Shenzhen Guanhua Printing & dyeing Co., Ltd. | 3,806,454.17 | 3,806,454.17 |
| Other payable | Shenzhen Xinfang Knitting Co., Ltd. | 244,789.85 | 244,789.85 |
| Other payable | Shenzhen Investment Holdings Co., Ltd | 0.00 | 643,987.04 |
7. Related party commitment
None
8.Other
NoneXIII. Share payment
1. Overall situation of share payment
□Applicable √Not applicable
2. Equity-settled share-based payment
□Applicable √Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
NoneXIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
(1) Capital commitment
In RMB
| Items | Amount at the end of this year | Amount at the end of last year |
| Contracted but not recognized in the financial statements | ||
| Commitment to purchase and build long-term assets | 9,826,665.40 | 3,761,094.00 |
2. Contingency
(1) Significant contingency at balance sheet date
None
(2) The Company have no significant contingency to disclose, also should be statedNone
3.Other
NoneXV. Events after balance sheet date
1. Significant events had not adjusted
None
2. Profit distribution
None
3. Sales return
None
4. Notes of other significant events
NoneXVI. Other significant events
1. Correction of the accounting errors in the previous period
None
2. Liabilities restructuring
None
3. Replacement of assets
None
4. Pension plan
None
5. Discontinuing operation
None
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure, managementrequirements and internal reporting system. Based on the operating divisions, the Company confirms threereporting divisions, namely textiles, polarizer, trade and property leasing.Divisional reporting information is disclosed in accordance with the accounting policies and measurementstandards adopted by each division when reporting to the management. These measurement basis are consistentwith the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
| Items | Polarizer | Textile | Property lease and other | Offset between divisions | Total |
| Operating income | |||||
| Including: revenue from foreign transaction | 1,412,410,148.66 | 56,093,359.66 | 21,592,161.23 | 0.00 | 1,490,095,669.55 |
| Revenue from inter-segment transactions | 0.00 | 1,580,122.82 | 46,476.10 | -1,626,598.92 | 0.00 |
| Total operating income of segment | 1,412,410,148.66 | 57,673,482.48 | 21,638,637.33 | -1,626,598.92 | 1,490,095,669.55 |
| Operating expenses | 1,349,302,885.40 | 40,298,941.06 | 24,372,370.21 | -1,483,826.81 | 1,412,490,369.86 |
| Operating profit | 38,699,455.89 | 25,336,492.52 | -3,357,160.43 | -142,772.11 | 60,536,015.87 |
| Net profit | 36,115,184.98 | 20,124,415.57 | -3,354,455.12 | -698,340.20 | 52,186,805.23 |
| Total assets of segment | 4,401,822,948.27 | 1,291,062,431.45 | 38,894,981.64 | -58,934,723.45 | 5,672,845,637.91 |
| Total liabilities of segment | 1,494,650,341.37 | 140,990,476.37 | 34,122,817.74 | -50,108,501.48 | 1,619,655,134.00 |
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segmentscannot be disclosed, explain the reasonNone
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision makingNone
8.Other
None
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by portfolio | 18,783,540.82 | 100.00% | 779,276.24 | 4.15% | 18,004,264.58 | 16,356,183.36 | 100.00% | 713,159.25 | 4.36% | 15,643,024.11 |
| Total | 18,783,540.82 | 100.00% | 779,276.24 | 4.15% | 18,004,264.58 | 16,356,183.36 | 100.00% | 713,159.25 | 4.36% | 15,643,024.11 |
Accrual of bad debt provision by portfolio:：
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Accrual portfolio | 18,783,540.82 | 779,276.24 | 4.15% |
| Total | 18,783,540.82 | 779,276.24 | |
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 16,298,464.82 |
| 1- 2 years | 946,760.00 |
| 2-3 years | 1,538,316.00 |
| Total | 18,783,540.82 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balanc | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual portfolio | 713,159.25 | 66,116.99 | 0.00 | 0.00 | 0.00 | 779,276.24 |
| Accrual single | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 713,159.25 | 66,116.99 | 0.00 | 0.00 | 0.00 | 779,276.24 |
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
| Name | Closing balance | Proportion % | Balance of Bad debt provision |
| Client 1 | 12,780,240.15 | 68.04% | 199,497.75 |
| Client 2 | 2,485,076.00 | 13.23% | 124,253.80 |
| Client 3 | 1,593,487.36 | 8.48% | 83,658.09 |
| Client 4 | 1,472,107.76 | 7.84% | 71,370.00 |
| Client 5 | 84,420.00 | 0.45% | 4,221.00 |
| Total | 18,415,331.27 | 98.04% |
(5) Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement ofaccounts receivableNone
2. Other accounts receivable
In RMB
| Items | Closing balance | Opening balance |
| Other accounts receivable | 14,116,168.90 | 14,132,756.62 |
| Total | 14,116,168.90 | 14,132,756.62 |
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
None3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant dividends receivable with age exceeding 1 year
None
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Internal current account | 15,830,841.48 | 15,349,339.97 |
| Related party transactions within the consolidation scope | 13,115,619.17 | 12,980,241.09 |
| Other | 330,734.21 | 1,056,701.52 |
| Spare funds and employee borrowing | 65,000.00 | 0.00 |
| Deposit and security deposit | 10,000.00 | 10,000.00 |
| Total | 29,352,194.86 | 29,396,282.58 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2023 | 59,301.12 | 3,018.92 | 15,201,205.92 | 15,263,525.96 |
| Balance as at January 1, 2023in current | ||||
| Provision in Current Year | 27,500.00 | 0.00 | 0.00 | 27,500.00 |
| Reversal in Current Year | -55,000.00 | 0.00 | 0.00 | -55,000.00 |
| Balance as at 30 June 2023 | 31,801.12 | 3,018.92 | 15,201,205.92 | 15,236,025.96 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 3,364,804.74 |
| 1-2 years | 10,707,995.02 |
| Over 3 years | 15,279,395.10 |
| Over 5 years | 15,279,395.10 |
| Total | 29,352,194.86 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by single item | 15,111,246.32 | 0.00 | 0.00 | 0.00 | 0.00 | 15,111,246.32 |
| Accrual of bad debt provision by portfolio: | 152,279.64 | 27,500.00 | -55,000.00 | 0.00 | 0.00 | 124,779.64 |
| Total | 15,263,525.96 | 27,500.00 | -55,000.00 | 0.00 | 0.00 | 15,236,025.96 |
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
None
5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Unit name | Payment nature | Year-end balance of other receivables | Aging | Proportion of total year-end balance of other receivables (%) | Year-end balance of credit loss provision |
| Client 1 | Internal borrowing and interest | 13,115,619.17 | Over 1-5 years | 44.68% | 0.00 |
| Client 2 | Unit account | 11,389,044.60 | Over 5 years | 38.80% | 11,389,044.60 |
| Client 3 | Unit account | 1,800,000.00 | Over 5 years | 6.13% | 1,800,000.00 |
| Client 4 | Unit account | 1,018,295.37 | Over 5 years | 3.47% | 1,018,295.37 |
| Client 5 | Unit account | 592,420.00 | Over 5 years | 2.02% | 592,420.00 |
| Total | 27,915,379.14 | 95.10% | 14,799,759.97 |
6) Accounts receivable involved with government subsidies
None
7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNone
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of otheraccounts receivableNone
3. Long-term equity investment
In RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in subsidiaries | 1,974,532,127.39 | 16,582,629.30 | 1,957,949,498.09 | 1,974,532,127.39 | 16,582,629.30 | 1,957,949,498.09 |
| Investments in associates and joint ventures | 132,425,526.41 | 0.00 | 132,425,526.41 | 134,481,835.74 | 0.00 | 134,481,835.74 |
| Total | 2,106,957,653.80 | 16,582,629.30 | 2,090,375,024.50 | 2,109,013,963.13 | 16,582,629.30 | 2,092,431,333.83 |
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||
| Add investment | Other | ||||||
| SAPO Photoelectric | 1,910,247,781.94 | 0.00 | 0.00 | 0.00 | 0.00 | 1,910,247,781.94 | 14,415,288.09 |
| Shenzhen Lisi Industrial Development Co., Ltd. | 8,073,388.25 | 0.00 | 0.00 | 0.00 | 0.00 | 8,073,388.25 | 0.00 |
| Shenzhen Beauty Centruty Garment Co., Ltd. | 16,598,166.34 | 0.00 | 0.00 | 0.00 | 0.00 | 16,598,166.34 | 2,167,341.21 |
| Shenzhen Huaqiang Hotal | 15,489,351.08 | 0.00 | 0.00 | 0.00 | 0.00 | 15,489,351.08 | 0.00 |
| Shenfang Property Management Co., Ltd. | 1,713,186.55 | 0.00 | 0.00 | 0.00 | 0.00 | 1,713,186.55 | 0.00 |
| Shenfang Sungang Property Management Co., Ltd. | 5,827,623.93 | 0.00 | 0.00 | 0.00 | 0.00 | 5,827,623.93 | 0.00 |
| Total | 1,957,949,498.09 | 0.00 | 0.00 | 0.00 | 0.00 | 1,957,949,498.09 | 16,582,629.30 |
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 129,506,271.76 | 0.00 | 0.00 | -2,192,221.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 127,314,050.41 | 0.00 |
| Subtotal | 129,506,271.76 | 0.00 | 0.00 | -2,192,221.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 127,314,050.41 | 0.00 |
| II. Associated enterprises | |||||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 3,105,796.55 | 0.00 | 0.00 | 124,599.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,230,395.62 | 0.00 |
| Yehui International Co., | 1,869,767.43 | 0.00 | 0.00 | -43,637.75 | 54,950.70 | 0.00 | 0.00 | 0.00 | 0.00 | 1,881,080.38 | 0.00 |
| Ltd. | |||||||||||
| Subtotal | 4,975,563.98 | 0.00 | 0.00 | 80,961.32 | 54,950.70 | 0.00 | 0.00 | 0.00 | 0.00 | 5,111,476.00 | 0.00 |
| Total | 134,481,835.74 | 0.00 | 0.00 | -2,111,260.03 | 54,950.70 | 0.00 | 0.00 | 0.00 | 0.00 | 132,425,526.41 | 0.00 |
（3）Other note
None
4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Business income | Business cost | Business income | Business cost | |
| Income from Main Business | 39,239,619.43 | 4,156,707.01 | 19,836,395.33 | 3,883,135.15 |
| Other Business income | 0.00 | 0.00 | 1,320,274.42 | 1,320,274.42 |
| Total | 39,239,619.43 | 4,156,707.01 | 21,156,669.75 | 5,203,409.57 |
Income-related information:
In RMB
| Type | Property management | Total |
| Types of goods | 39,239,619.43 | 39,239,619.43 |
| Including | ||
| Property lease management and others | 39,239,619.43 | 39,239,619.43 |
| Area | 39,239,619.43 | 39,239,619.43 |
| Including： | ||
| Domestic | 39,239,619.43 | 39,239,619.43 |
| Tota | 39,239,619.43 | 39,239,619.43 |
Information related to performance obligations: NoneInformation related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period, the income amount corresponding to the performance obligations that havebeen signed but not fulfilled or completed is 0.00 yuan. Among them, RMB 0.00 is expected to be recognized asrevenue in 0 year, RMB 0.00 is expected to be recognized as revenue in 0 year, and RMB 0.00 is expected to berecognized as revenue in 0 year.
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Long-term equity investment returns accounted for by equity method | -2,111,260.03 | 1,658,532.04 |
| Investment income of trading financial assets during the holding period | 8,906,611.67 | 8,967,680.80 |
| Dividend income earned during investment holdings in other equity instruments | 906,000.00 | 708,000.00 |
| Total | 7,701,351.64 | 11,334,212.84 |
6.Other
NoneXVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss | 321.08 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 19,369,307.55 | |
| Other non-business income and expenditures other than the above | -2,636,193.26 | Mainly for quality compensation |
| Less :Influenced amount of income tax | 2,504,189.66 | |
| Influenced amount of minor shareholders’ equity (after tax) | 5,609,409.35 | |
| Total | 8,619,836.36 | -- |
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definitionin the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the saidexplanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnings per share
| Profit of report period | Weighted average returns equity(%) | Earnings per share | |
| Basic earnings per share(RMB/share） | Diluted earnings per share(RMB/share) | ||
| Net profit attributable to the Common stock shareholders of Company. | 1.27% | 0.0717 | 0.0717 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | 0.97% | 0.0547 | 0.0547 |
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accountingstandards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standards. If the data that has been audited by an overseas audit institution is adjusted for differences, the name of the overseas institution should be indicatedNone
4. Other
None