ShenzhenTextile(Holdings)Co.,Ltd.
TheSemi-AnnualReport2023
August2023
I.ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors，theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.Mr.YinKefei,TheCompanyleader,Mr.HeFei,ChieffinancialofficerandtheMr.HuangMin,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthesemi-report.AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,Investorsandrelatedpersonsshallkeepsufficientriskawareness,andshallunderstandthedifferencesbetweenplans,forecastsandcommitments,andremindinvestorsofinvestmentrisks.Thecompanyhasthemacroeconomicrisks,marketcompetitionrisksandrawmaterialrisks.Investorsareadvisedtopayattentiontoinvestmentrisks.Fordetails,pleaserefertothepossibleriskfactorsthatthecompanymayfaceintheX"RisksfacingtheCompanyandcountermeasures"intheSectionIII"ManagementDiscussion&Analysis".TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.ThisReporthasbeenpreparedinbothChineseandEnglish.Incaseofanydiscrepancy,theChineseversionshallprevail.
TableofContents
I.ImportantNotice,TableofcontentsandDefinitionsII.CompanyProfile&FinancialHighlights.III.ManagementDiscussion&AnalysisIV.CorporateGovernanceV.Environmental&SocialResponsibilityVI.ImportantEventsVII.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVIII.SituationofthePreferredSharesIX.CorporateBondX.FinancialReport
Documentsavailableforinspection
1.AccountingstatementsbearingthesignaturesandsealsoftheCompany'slegalrepresentative,GeneralManager,ChiefFinancialofficer.andpersoninchargeoftheaccountingagency.
2.ThetextsofalltheCompany'sdocumentspubliclydisclosedonthenewspapersandperiodicalsdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod.TheabovedocumentswerecompletelyplacedattheOfficeofSecretariesoftheBoardofDirectorsoftheCompany.
Definition
| Termstobedefined | Refersto | Definition |
| Company/TheCompany/ShenTextile | Refersto | ShenzhenTextile(Holdings)Co.,Ltd |
| ArticlesofAssociation | Refersto | ArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd |
| Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | Refersto | NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment |
| TheControllingshareholder/ShenzhenInvestmentHoldingsCo.,Ltd. | Refersto | ShenzhenInvestmentHoldingsCo.,Ltd. |
| ShenchaoTechnology | Refersto | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. |
| SAPOPhotoelectric | Refersto | ShenzhenSAPOPhotoelectricCo.,Ltd. |
| NittoDenko | Refersto | NittoDenkoCorporation |
| BeautyCentury | Refersto | ShenzhenBeautyCenturyGarmentCo.,Ltd. |
| ShenzhenXieli | Refersto | ShenzhenXieliAutomobileCo.,Ltd. |
| HengmeiPhotoelectric | Refersto | HengmeiPhotoelectricCo.,Ltd. |
| QimeiMaterial | Refersto | QimeiMaterialTechnologyInvestmentCo.,Ltd. |
| HaoshengDanyang | Refersto | Haosheng（Danyang）InvestmentManagementCo.,Ltd. |
| DanyangNuoyan | Refersto | DanyangNuoyanTianxinInvestmentPartnership（LP) |
| XiamenNuoyan | Refersto | XiamenNuoyanPrivateEquityFundManagementCo.,Ltd |
| FuzhouNewInvestment | Refersto | FuzhouNewAreaDevelopment&InvestmentGroupCo.,Ltd. |
| HefeiBeicheng | Refersto | HefeiBeichengNo.2Photoelectricindustryinvestmentpartnership(LP) |
| HangzhouRencheng | Refersto | HangzhouRenchengTradePartnership(LP) |
| XingheTechnology | Refersto | ShenzhenXingheHardTechnologyPrivateEquityInvestmentFundPartnership(LP) |
| LishuiHuahui | Refersto | LishuiHuahuiEquityInvestmentPartnership(LP) |
| HuzhouPainuo | Refersto | HuzhouPainuoHuacaiEquityInvestmentPartnership(LP) |
| LishuiTengbei | Refersto | LishuiTengbeiMingchengEquityInvestmentPartnership(LP) |
| FuzhouInvestment | Refersto | FuzhouInvestmentManagementCo.,Ltd. |
| XiamenZhifeng | Refersto | XiamenZhifengEquityInvestmentPartnership(LP) |
| JiaxingPainuo | Refersto | JiaxingPainuoXiancaiquityInvestmentPartnership(LP) |
| HuzhouZhekuang | Refersto | HuzhouZhekuangEquityInvestmentPartnership(LP) |
| GuangdongXingzhi | Refersto | GuangdongXingzhiVentureInvestmentPartnership(LP) |
| GuangzhouBoyue | Refersto | GuangzhouBoyueVentureInvestmentPartnership(LP) |
| JinhangInvestment | Refersto | HangzhouJinhangInvestmentFundPartnership（LP） |
| Line4 | Refersto | TTFT-LCDpolarizerIIphaseLine4project |
| Line5 | Refersto | TFT-LCDpolarizerIIphaseLine5project |
| Line6 | Refersto | TFT-LCDpolarizerIIphaseLine6project |
| Line7 | Refersto | IndustrializationprojectofPolaroidforsuperlargesizeTV |
| “CSRC” | Refersto | ChinaSecuritiesRegulatoryCommission |
| TheReport | Refersto | TheSemi-annualReport2023 |
II.CompanyProfile&FinancialHighlightsI.CompanyProfile
| Stockabbreviation | ShenTextileA,ShenTextileB | Stockcode | 000045,200045 |
| ModifiedstockID(ifany) | No | ||
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameinChinese | 深圳市纺织(集团)股份有限公司 | ||
| Chineseabbreviation(Ifany) | 深纺织 | ||
| Englishname(Ifany) | SHENZHENTEXTILE(HOLDINGS)CO.,LTD | ||
| Englishabbreviation(Ifany) | STHC | ||
| LegalRepresentative | YinKefei | ||
II.Contactpersonandcontactmanner
| Boardsecretary | SecuritiesaffairsRepresentative | |
| Name | JiangPeng | LiZhenyu |
| Contactaddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen |
| Tel | 0755-83776043 | 0755-83776043 |
| Fax | 0755-83776139 | 0755-83776139 |
| jiangp@chinasthc.com | lizy@chinasthc.com |
III.Other
1.WaytocontacttheCompanyWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot?Applicable□Notapplicable
| Registeredaddress | 708m,Building8,QianhaieXCELLENCEfINANCIALCenter(PhaseI),nO.5033,MenghaiRoad,NanshanStreet,QianhaiShenzhen-HongkongCooperationZone,Shenzhen |
| PostalcodeoftheRegisteredAddress | 518052 |
| OfficeAddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen |
| Postalcodeoftheofficeaddress | 518031 |
| InternetWebSite | http://www.chinasthc.com |
| szfzjt@chinasthc.com |
2.Informationinquiry
Whetherinformationdisclosureandpreparationplacechangedinreportingperiodornot
□Applicable√NotapplicableNoneoftheofficialpresses,website,andplaceofenquiryhasbeenchangedinthesemireportperiod.FordetailspleasefindtheAnnualReport2022.
3.OtherrelevantinformationDidanychangeoccurtootherrelevantinformationduringthereportingperiod?
□Applicable√Notapplicable
IV.SummaryofAccountingdataandFinancialindexMaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyears
□Yes√No
| Reportingperiod | Sameperiodoflastyear | YoY+/-（%） | |
| Operatingincome（RMB） | 1,490,095,669.55 | 1,445,137,309.09 | 3.11% |
| Netprofitattributabletotheshareholdersofthelistedcompany（RMB） | 36,307,162.97 | 42,433,525.10 | -14.44% |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany（RMB） | 27,687,326.61 | 34,970,975.47 | -20.83% |
| Cashflowgeneratedbybusinessoperation,net（RMB） | 14,402,973.60 | 79,438,234.59 | -81.87% |
| Basicearningpershare(RMB/Share) | 0.0717 | 0.0838 | -14.44% |
| Dilutedgainspershare(RMB/Share)(RMB/Share) | 0.0717 | 0.0838 | -14.44% |
| WeightedaverageROE(%) | 1.27% | 1.50% | -0.23% |
| Asattheendofthereportingperiod | Asattheendoflastyear | YoY+/-（%） | |
| Totalassets（RMB） | 5,672,845,637.91 | 5,617,137,367.90 | 0.99% |
| Netassetsattributabletoshareholderoflistedcompany（RMB） | 2,855,413,998.04 | 2,849,264,555.21 | 0.22% |
V.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards.
□Applicable√NotapplicableNodifference.
2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.VI.Itemsandamountofdeductednon-currentgainsandlosses
√Applicable□Notapplicable
InRMB
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade) | 321.08 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 19,369,307.55 | |
| Othernon-businessincomeandexpendituresotherthantheabove | -2,636,193.26 | Mainlyforqualitycompensation |
| Less:Influencedamountofincometax | 2,504,189.66 | |
| Influencedamountofminorshareholders’equity(aftertax) | 5,609,409.35 | |
| Total | 8,619,836.36 |
Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition
□Applicable√NotapplicableFortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason.
□Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.
III.ManagementDiscussion&AnalysisI.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod
(I)ThedevelopmentoftheindustrytowhichthecompanybelongsThefullnameofPOLispolarizer,whichcancontrolthepolarizationdirectionofaspecificbeam,andwhennaturallightpassesthroughthepolarizer,thelightperpendiculartothepolarizertransmissionaxisinthevibrationdirectionwillbeabsorbed,andthetransmittedlightisonlypolarizedlightparalleltothepolarizertransmissionaxis.Thedownstreamapplicationofpolarizerismainlythepanelindustry,andaccordingtothedifferenttypesofpanels,polarizersaremainlydividedintoTNtype,STNtype,TFTtypeandOLEDtype.Atpresent,theglobalpolarizermarketismainlydominatedbypolarizersforTFT-LCDpanels,andtwopolarizersarerequiredforoneLCDpanel.
ThepolarizeroftheCompany'sproductisoneofthekeybasicmaterialsinthedisplaypanelindustry,anditsdemandislargelyaffectedbythefluctuationofthedisplaypanelmarket.Inthefirsthalfof2023,affectedbyinsufficientterminalconsumerdemand,panelmanufacturersreducedthepurchaseofpolarizers,coupledwiththeintensecompetitivepressureinthepolarizerindustry,theoverallsalespriceofpolarizersislowerthanthesameperiodlastyear.Aspanelfactoriescontinuetoadjusttheiroperationsanddynamicallycontrolproduction,withtheslowrecoveryofterminalconsumerdemand,therelationshipbetweenmarketsupplyanddemandgraduallyflattens,thepanelpricegraduallystabilizesandrises,andit’sexpectedthatthepanelmanufacturers'demandforpolarizerswillrecovertoacertainextent.
(II)MainBusinesstheCompanyisEngagedThecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.
Duringthereportingperiod,theCompany'smainbusinesshasnotchangedsignificantly.TheCompanyisactivelystrivingformarketorders,continuouslyoptimizingtheproductstructure,givingprioritytoorderswithhighgrossprofitandstablesalesvolumeundertheconditionofmeetingtheoperationoftheproductionline.ThesalesvolumeoftheCompany'spolarizerbusinessincreasedYOY,andtheCompanystabilizedtheproductionwhilereducingthenumberofchangeoversandthroughoptimizationandstreamliningofassembly.Thesecondistostrengthencustomermanagement,stabilizekeycustomerrelations,openupnewmarkets,strengthentheOLED-TVmarket,promotetheproportionofpolarizerproductsforlarge-sizeTVs.Thethirdistostrengthensuppliermanagement,carryoutcoresuppliervisitsandnegotiations,activelypromotethelocalizationofmaterials,andcontinuetopromoteprocurementcostreductionthroughpricenegotiationandnewsupplierintroduction;Thefourthistocontinuetopromoteleanmanagement,payattentiontoproductionmanagementandoutputimprovement,carryoutimprovementworksuchasfilmbreakingproblemsolutionandsiteenvironmentimprovement,focusonimprovingturnoverefficiencyininventorymanagement,strengthencostmanagementfromsupplychainnegotiation,productionloss,energyconsumption,etc.tofullypromotecostreductionandefficiencyincrease.ThefifthistodevelopandexpandOLED-TVseriesproducts,promoteOLED-mobilephoneproductperformanceimprovementandcertificationdeliveryintermsoftheR&Dmanagement.Thesixthistocarryoutsafetyinspection,safetydrillsandtraining,strengthensecurityforcesinsafetyproductionmanagement.Theseventhistocontinuetodowellinleasingofitsownpropertiesanditsupgradingandtransformingwork.Theeighthistopromotethemajorassetrestructuringmatter,andactivelypromoteauditing,appraisal,duediligenceandotherworkinvolvedinthetransactionwithrelevantparties.
Duringthereportingperiod,theCompanyachievedtheoperatingincomeof1.490billionyuan,anincreaseof3.11%YOY;Thenetprofitattributabletoshareholdersofthelistedcompanywas36,307,200yuan,down
14.44%YOY.Themainreasonforthedeclineinnetprofitattributabletoshareholdersofthelistedcompanyinthereportingperiodcomparedwiththesameperiodofthepreviousyear:Inthefirsthalfof2023,affectedbythelackofterminalconsumerdemand,thelargecompetitivepressureinthepolarizerindustryandtheoveralllowersalespriceofpolarizersthanthesameperiodlastyear,it’sresultedinadeclineintheCompany'sperformancecomparedwiththesameperiodlastyear.(III)MainproductsandtheirpurposesCurrently,theCompanyhas7massproductionlinesforpolarizers,coveringTN,STN,TFT,OLED,3D,dyesheet,opticalfilmfortouchscreenandotherfields,mainlyusedinTV,NB,navigator,Monitor,vehicle,industrialcontrol,instruments,smartphones,wearabledevices,3Dglasses,sunglassesandotherproducts，thecompanyhasbecomeamainstreampanelcompanysuchasHuaxingOptoelectronics,BOE,Sharp,LGD,ShenzhenTianma,Huike,etc.bycontinuouslystrengtheningsaleschannelexpansionandbuildingitsownbrand.Qualifiedsuppliers.
TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows:
| Line | Place | Productbreadth | Plannedcapacity | Mainprojuct |
| Line1 | Pingshan | 500mm | 600，000m2 | TN/STN/Dyepiece |
| Line2 | Pingshan | 500mm | 1.2millionm2 | TN/STN/CSTN |
| Line3 | Pingshan | 650mm | 1millionm2 | TFT |
| Line4 | Pingshan | 1490mm | 6millionm2 | TFT/OLED |
| Line5 | Pingshan | 650mm | 2millinm2 | TFT/OLED |
| Line6 | Pingshan | 1490mm | 10millionm2 | TFT/OLED |
| Line7 | Pingshan | 2500mm | 32millinm2 | TFT/OLED |
(IV)Company'sbusinessmodel
ThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win.(V)Marketpositionofcompanyproducts
TheCompanyisoneofthemainpolarizerR&D,productionandsalesenterprisesinChina,andhastheproductioncapacityofTFT-LCDpolarizer,OLEDTVpolarizerandblackandwhiteseriespolarizer,andisaleadingenterpriseinthedomesticpolarizerindustry.TheCompanymainlyfocusesonmediumandlargesizepolarizerproducts,andhastheproductioncapacityofmulti-sizeandmulti-seriesproducts.TheCompany'sNo.7lineisoneofthefewultra-widepolarizerproductionlinesintheworld,whichcanmeettheneedsoftheworld'shigh-generationpanelproductionlinessuchas8.5/8.6generationand10.5/11generation,especiallymatchingthe10.5/11generationlinewiththebesteconomicproductionefficiency.(VI)MajorfactorsfordrivingtheCompany'sperformance
1.GlobaldemandforpolarizersmaintainsagrowingtrendAccordingtoOmdiaresearchdata,thetotaldemandforglobalpolarizersisexpectedtoincreasefrom567millionsquaremetersin2022to669millionsquaremetersin2026.Withthedevelopmenttrendofdownstreampanelindustry,thepolarizerindustryacceleratesitstransfertoChineseMainland,itisestimatedthatthemarketdemandforpolarizersinChineseMainlandwillincreasefrom67%in2022to80%in2026,providingopportunitiesforthefuturedevelopmentofthecompany.
2.ThepolarizerterminalTVmarketisdevelopinginthedirectionoflarge-sizeandhigh-endInthefieldofTFT-LCDproducts,TVisstillthemostimportantproductforLCDcapacityconsumption.Fromtheperspectiveofdownstreampaneldemandincrement,thesizegrowthofLCDTVproductshasbecomethemainpartofLCDincrementaldemand.AccordingtoOmdiaresearchdata,theaveragesizeofTVpanelshassteadilyincreasedinrecentyears.In2023,theaveragesizeofTVpanelshasexceeded50inches.Thelarge-scaledisplayproductsarestillanimportanttrendinthefuturedevelopmentoftheindustry,whichisanimportantdrivingforceforthegrowthofpolarizerdemandandwillprovidestableincrementaldemandforthepolarizermarket.
WiththedevelopmentoftheTVmarketinthedirectionislargesizeandhigh-end,thepolarizermanufacturersneedtoinvestinawider-widthproductionlineinordertomatchthecuttingefficiency.After2018,withtheglobal10.5-generationproductionlineput-into-production,thedemandfor43-inch,49-inch,55-inch,65-inchandothersizesofpanelshasgrownrapidly,thereforethemarketdemandforpolarizersmatchingthecorrespondingsizewillgrowrapidly.However,thepolarizerproductionlineswithdifferentwidthshavedifferentcuttingefficiencyforcuttingTVpanelsofdifferentsizes.Onthewhole,thelargerthewidthofthepolarizerproductionline,themorecuttingsizestructureoftheproductcanbeadapted,thehighertherelativeuseefficiency,anditismoresuitableforthetrendoflarge-sizepanelapplications.
3.TheCompany'sownaccumulatedcompetitiveadvantage
Fordetails,pleasereferto"II.CoreCompetitivenessAnalysis"inthischapter.II.AnalysisOncoreCompetitiveness
(I)Technologyadvantages.SAPOPhotoelectricisthefirstdomesticnationalhigh-techcompanywhichenteredintotheR&Dandproductionofthepolarizer，Weareoneofthelargest,mosttechnicalandprofessionalpolarizerR&Dteamsinthecountry，Withmorethan20yearsofoperatingexperienceinthepolarizerindustry,itsproductscovermainstreamdisplayapplicationssuchasTNtype,STNtype,TFTtype,OLEDtype,etc.,andhasacompletesetofproprietarytechnologyofpolarizerthatcanmeetcustomerneedsandhasindependentintellectualpropertyrightsofvariousnewproducts.Asoftheendofthereportingperiod,SAPOPhotoelectrichasobtainedatotalof101patentauthorizations,including18domesticinventionpatents,79domesticutilitymodelpatents,and4overseasutilitymodelpatents.4nationalstandardsand2industrystandardsindependentlydraftedandformulatedbySAPOPhotoelectricareimplementedthroughexaminationandapproval;Inaddition,1industrystandardthatitparticipatedinthedraftingandformulationpassedtheapprovalandimplementation.SAPOPhotoelectrichasthreeinnovationplatformsof"GuangdongEngineeringTechnologyResearchCenter","ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory"and"ShenzhenEnterpriseTechnologyCenter",focusingontheresearchanddevelopmentandindustrializationofthecoreproductiontechnologyofpolarizersforLCDs,thedevelopmentand
industrializationofnewproductsforpolarizersforOLEDs,andthelocalizationresearchofrawmaterialsforpolarizerproduction,amongwhich,theOLEDTVandOLEDmobilephonepolarizerprojectshavesuccessivelyachievedmassproduction,fillingthedomesticgap.
(II)Talentsadvantages.TheCompanypaysattentiontoindependentinnovation,establishesan
efficientR&Dmanagementsystem,andhasapolarizermanagementteamandtheseniortechnicalpersonnelteamwithstrongtechnicalability,richexperienceandinternationalvision.Throughlearningandabsorbingtheproductiontechnologyandmanagementconceptsofadvancedpolarizerenterprises,meanwhileaccumulatingtechnicalexperienceandimprovingitscorecompetitivenessthroughindependentinnovation,theCompanygraduallyaccumulatesitsownbrand,technology,operationmanagementandotheradvantages.Inthefirsthalfof2023,theCompanycontinuedtodeepenmarket-orientedreform,practicedtheconceptof"Everyoneisatalent,notracehorses",selectedagroupofmiddle-levelmanagementcadreswithstrongprofessionalabilityandrichindustryexperience,andfurtherstrengthenedthecorebackboneteam;itimprovedthetalentgrowthchannelandthereservedtalentechelonconstructionmechanism,regularlyorganizedandcarriedoutemployeegradeevaluation,reservetalentpool,etc.,tohelpemployeesgrowanddevelop;anditimprovedtheassessmentincentivemechanism,andgaveplaytotheincentiveandspurringroleofassessment;theCompanyactivelyexploredthelong-termincentiveconstraintsoftheCompany'smanagementlayer,theemployeebenefitrewarddistributionmechanism,theemployeestockownershipplan,etc.tobuildavaluedistributionmechanismforbenefitsharingandrisksharing.
(III)Marketadvantages.TheCompanyhasagoodmarketcustomerbaseathomeandabroad,
comparedwithforeignadvancedcounterparts,thebiggestadvantageoftheCompanyisthatithaslocalizedmatchingabilitythatisclosetothepanelmarket,aswellasthestrongsupportfromthenationalindustrialpolicy.Intermsofmarketdemand,withthemassproductionofdomestic10.5/11thgenerationandotherhigh-generationTFT-LCDpanelproductionlines,thedomesticpolarizermarketdemandhasalsoincreased;Andwiththefurtheraccelerationofthedevelopmentoflarge-sizepanels,themainlandmanufacturerswithlarge-sizepolarizerproductioncapacityareusheringinimportantindustryopportunities.Intermsofmarketdevelopment,theCompanyfocusesoncustomerneeds,constantlyoptimizesproductiontechnologyandproductstructure,improvesqualitycontrol,organicallycombinesproductionandsales,establishesarapidresponsemechanism,givesfullplaytolocalizationadvantages,andeffectivelydoesagoodjobinpoint-to-pointprofessionalservices.Centeringontheoverallstrategicdeployment,theCompanywillpromotetheverificationofvariousmodels,formastablesupplychain,andcontinuouslyincreasemarketshare.Meanwhile,itwillusethecapitalmarkettocarryoutassetrestructuring,implementtheCompany'sdevelopmentstrategy,andseizeimportantmarketopportunitiestobecomebetterandstronger.(IV)Qualityadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.(V)Managementadvantages.SAPOPhotoelectrichasaccumulatedrichmanagementexperiencesinmorethan20yearsinthemanufacturingofpolarizer,possessingthehomemostadvancedcontroltechnologyofthe
productionmanagementprocessofthepolarizerandqualitymanagementtechnologyandthestablerawmaterialprocurementchannelsoforthmanagementsystems.Thecompanyhadcarriedoutcomprehensivebenchmarkingwork,organizedthemanagementpersonneltolearnadvancedexperiencesfromcustomersandpeerstoforcetheelevationofmanagementability,anddrewontheforeigncompany’smanagementexperiencesofpolarizer,optimizedthecompany'sorganizationalstructure,reducedthemanagerialhierarchyandfurtherenhancedthecompany'smanagementefficiency.TheCompanycontinuestoimplementadvancedmanagementsystemsandreasonableincentivemechanisms,improvedecision-makingefficiency,improvemarketresponsespeed,improveR&Drewardsystem,andalsorealizethein-depthintegrationofenterpriseandemployeevaluetostimulatenewvitalityofoperation;Itformulatesthesubordinatecompany'soperationimprovementworkplan,setsupabusinessimprovementworkinggroup,comprehensivelysortsoutthecompany'soperation,putsforwardimprovementsuggestions,andhelpsimprovethecompany'sproductionandoperation;Throughtheimplementationofthekeyworkmanagementlistof"doingsolidpartybuilding+,leanpromotingdevelopment",itusesleanmeanstoreducecostsandincreasesefficiency;Throughtheimplementationofthe"AmoebaBusinessModel"projectandthedividingofthesmallindependentaccountingunit,itenablesthegrassrootsbackboneemployeescanparticipateinproductionandoperationactivities.(VI)Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,Ithasmaintainedthesecurityofthenationalnewdisplayindustry,playedapositiveroleinenhancingtheoverallcompetitivenessofChina'snewdisplayindustrychain,andpromotedthecoordinateddevelopmentofthewholeindustrychainofShenzhen's"20+8"ultra-high-definitionvideodisplayindustrycluster.SAPOPhotoelectrichaspassedtheidentificationofnationalhigh-techenterprises,andthepolarizerprojecthasbeensupportedbynationalandprovincialpoliciesandcitypoliciesformanytimes,anditenjoysthepreferentialpolicyofexemptionfromtariffsfortheimportofsomerawmaterials.III.MainbusinessanalysisGeneralRefertorelevantcontentsof“1.Summarization”in“DiscussionandAnalysisofManagement”.Changesinthefinancialdata
InRMB
| Thisreportperiod | Sameperiodlastyear | YOYchange（%） | Causechange | |
| Operatingrevenue | 1,490,095,669.55 | 1,445,137,309.09 | 3.11% | |
| Operatingcost | 1,286,170,472.71 | 1,242,988,094.06 | 3.47% | |
| Saleexpenses | 16,439,473.30 | 18,355,747.39 | -10.44% | |
| Administrativeexpenses | 65,299,409.82 | 61,448,188.86 | 6.27% | |
| Financialexpenses | 4,179,495.63 | -8,833,873.44 | 147.31% | Mainlyduetochangesintheyenexchangerateduringthereportingperiodandtherepaymentoflong-termborrowings. |
| Incometaxexpenses | 5,713,017.38 | 340,897.81 | 1,575.87% | Mainlyduetotheincreaseintaxableincomeduringthereportingperiod. |
| R&DInvestment | 36,004,188.62 | 34,870,992.66 | 3.25% | |
| Cashflowgeneratedbybusiness | 14,402,973.60 | 79,438,234.59 | -81.87% | Mainlyduetotherecoveryofcustomsdepositsandtheincrementaltaxrebatesinthesameperiodlastyear |
| operation,net | ||||
| Netcashflowgeneratedbyinvestment | -448,360,425.07 | -43,613,588.81 | -928.03% | Mainlyduetothepurchaseofwealthmanagementproductsduringthereportingperiod. |
| Netcashflowgeneratedbyfinancing | -94,514,895.56 | 9,714,117.19 | -1,072.96% | Mainlyduetotherepaymentoflong-termborrowingsduringthereportingperiod. |
| Netincreasingofcashandcashequivalents | -528,791,098.47 | 46,252,547.23 | -1,243.27% | MainlyduetotheYOYincreaseininvestmentamountduringthereportingperiod. |
Majorchangesinprofitcompositionorsourcesduringthereportperiod
□Applicable√NotapplicableTheprofitcompositionorsourcesoftheCompanyhaveremainedlargelyunchangedduringthereportperiod.ComponentofBusinessIncome
InRMB
| Thisreportperiod | Sameperiodlastyear | Increase/decrease | |||
| Amount | Proportion | Amount | Proportion | ||
| Totaloperatingrevenue | 1,490,095,669.55 | 100% | 1,445,137,309.09 | 100% | 3.11% |
| OnIndustry | |||||
| Manufacturing | 1,434,002,309.89 | 96.24% | 1,408,495,225.98 | 97.46% | 1.81% |
| LeaseandManagementofProperty | 56,093,359.66 | 3.76% | 36,642,083.11 | 2.54% | 53.08% |
| OnProducts | |||||
| Polarizersheet | 1,412,410,148.66 | 94.79% | 1,385,904,291.44 | 95.90% | 1.91% |
| Textileproducts | 21,592,161.23 | 1.45% | 22,590,934.54 | 1.56% | -4.42% |
| LeaseandManagementofProperty | 56,093,359.66 | 3.76% | 36,642,083.11 | 2.54% | 53.08% |
| Area | |||||
| Domestic | 1,427,664,172.81 | 95.81% | 1,354,987,454.63 | 93.76% | 5.36% |
| Overseas | 62,431,496.74 | 4.19% | 90,149,854.46 | 6.24% | -30.75% |
SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%
√Applicable□Notapplicable
InRMB
| Turnover | Operationcost | Grossprofitrate(%) | Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%) | Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%) | Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%) | |
| OnIndustry | ||||||
| Manufacturing | 1,434,002,309.89 | 1,274,602,212.90 | 11.12% | 1.81% | 3.68% | -1.60% |
| OnProducts | ||||||
| Polarizersheet | 1,412,410,148.66 | 1,253,289,363.27 | 11.27% | 1.91% | 4.02% | -1.79% |
| Area | ||||||
| Domestic | 1,427,664,172.81 | 1,236,931,349.72 | 13.36% | 5.36% | 6.01% | -0.53% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmain
businessbasedonlatestonyear’sscopeofperiod-end.
□Applicable√NotapplicableIV.AnalysisofNon-coreBusiness
√Applicable□Notapplicable
InRMB
| Amount | Proportionintotalprofit | Explanationofcause | Sustainable(yesorno) | |
| Investmentincome | 7,743,354.69 | 13.37% | Obtainingequityenterprisedividends,contractfees,timedepositandmoneyfundinterestincome | Havethesustainability |
| Impairmentofassets | -35,512,897.29 | -61.34% | Mainlyfromtheprovisionofinventorydepreciationloss. | Havethesustainability |
| Non-operatingincome | 401,387.79 | 0.69% | Notsustainable. | |
| Non-operatingexpense | 3,037,581.05 | 5.25% | Mainlyforqualitycompensation | Notsustainable. |
| Otherincome | 19,369,307.55 | 33.45% | Mainlyforgovernmentsubsidies. | Havethesustainability |
V.Analysisofassetsandliabilities
1.Significantchangesinassetcomposition
InRMB
| EndofReportingperiod | Endofsameperiodoflastyear | Changeinpercentage(%) | Reasonforsignificantchange | |||
| Amount | Asapercentageoftotalassets(%) | Amount | Asapercentageoftotalassets(%) | |||
| Monetaryfund | 616,242,142.99 | 10.86% | 991,789,968.19 | 17.66% | -6.80% | Mainlyduetothepurchaseofwealthmanagementproducts |
| Tradingfinancialassets | 613,554,063.16 | 10.82% | 319,605,448.44 | 5.69% | 5.13% | Mainlyduetothepurchaseofwealthmanagementproducts |
| Accountsreceivable | 854,907,728.96 | 15.07% | 636,583,469.93 | 11.33% | 3.74% | Mainlyduetotheextensionoftheaccountperiodofsomecustomers. |
| Otherreceivable | 3,393,141.86 | 0.06% | 10,585,975.38 | 0.19% | -0.13% | Mainlyduetotheliftingofrestrictionsonrestrictedfunds. |
| Inventories | 663,102,543.53 | 11.69% | 558,447,648.77 | 9.94% | 1.75% | Mainlyduethepreparationofstocksofmaterialsandgoods |
| RealestateInvestment | 121,971,877.49 | 2.15% | 126,315,834.76 | 2.25% | -0.10% | Mainlyduetodepreciation. |
| Long-termequityinvestment | 132,425,526.41 | 2.33% | 134,481,835.74 | 2.39% | -0.06% | 。Mainlyduetochangesinprofitandloss |
| Fixedassets | 2,133,290,574.66 | 37.61% | 2,240,221,656.36 | 39.88% | -2.27% | Mainlyduetodepreciation. |
| Constructioninprocess | 36,543,522.56 | 0.64% | 38,061,619.60 | 0.68% | -0.04% | |
| Righttouseassets | 16,680,916.70 | 0.29% | 15,365,393.88 | 0.27% | 0.02% | |
| Short-termloans | 8,000,000.00 | 0.14% | 7,000,000.00 | 0.12% | 0.02% | |
| ContractLiabilities | 4,975,276.30 | 0.09% | 4,274,109.40 | 0.08% | 0.01% | |
| Long-termloans | 557,148,599.34 | 9.82% | 607,421,585.00 | 10.81% | -0.99% | Mainlyduetotherepaymentofloans. |
| Leaseliabilities | 10,357,763.45 | 0.18% | 8,628,672.71 | 0.15% | 0.03% |
2.Majoroverseasassets
□Applicable√Notapplicable
3.AssetandLiabilitiesMeasuredbyFairValue
√Applicable□Notapplicable
InRMB
| Items | Amountatyearbeginning | Gain/lossonfairvaluechangeinthereportingperiod | Cumulativefairvaluechangerecordedintoequity | Impairmentprovisionsinthereportingperiod | Purchasedamountinthereportingperiod | Soldamountinthereportingperiod | Otherchanges | Amountatyearend |
| Financialassets | ||||||||
| 1.Tradingfinancial(excludingderivativefinancialassets) | 319,605,448.44 | 480,000,000.00 | 195,000,000.00 | 8,948,614.72 | 613,554,063.16 | |||
| 4．OtherequityInstrumentInvestment | 167,678,283.27 | 167,678,283.27 | ||||||
| Subtotaloffinancialassets | 487,283,731.71 | 0.00 | 0.00 | 0.00 | 480,000,000.00 | 195,000,000.00 | 8,948,614.72 | 781,232,346.43 |
| Total | 487,283,731.71 | 0.00 | 0.00 | 0.00 | 480,000,000.00 | 195,000,000.00 | 8,948,614.72 | 781,232,346.43 |
| FinancialLiability | 0.00 | 0.00 |
OtherchangesNoneDidgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?
□Yes√No
4.RestrictedassetrightsasoftheendofthisReportingPeriod
Therestrictedassetsasattheendofthereportingperiodaremonetaryfunds,notesreceivable,fixedassetsandintangibleassets,including:
（1）TherestrictedmonetaryfundsmainlyincludethedepositofRMB4,595,637.31forbankdraftsandtheprincipalandinterestofRMB265,946,593.76forcertificatesofdepositmaturingmorethanthreemonthsfromthedateofpurchase
(2)LimitedfixedassetsandintangibleassetsaremainlysubsidiarySAPOphotoelectricwithitspartofselfsustainingpropertytothebankofcommunicationsco.,LTD.Shenzhenbranchastheleadofsyndicatedapplicationformortgageloans,andthecompanyforthemortgageguarantee,seethetideofinformation
network(http://www.cninfo.com.cn)companyonthecompanyforsubsidiarybankmortgageguaranteeannouncement(2020-19),theannouncementoftheprogressofthecompanyforthesubsidiaryguarantee(2020-
46).
VI.AnalysisoninvestmentStatus
1.General
□Applicable√Notapplicable
2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
□Applicable√Notapplicable
3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
□Applicable√Notapplicable
4.InvestmentofFinancialAsset
（1）Securitiesinvestment
□Applicable√NotapplicableTherewasnoinvestmentinsecuritiesbytheCompanyintheReportingperiod.
（2）InvestmentinDerivatives
□Applicable√NotapplicableTheCompanyhadnoinvestmentinderivativesinthereportingperiod.
5.Applicationoftheraisedcapital
□Applicable√NotapplicableTheCompanyhadnoapplicationoftheraisedcapitalinthereportingperiod.VII.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√NotapplicableVIII.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies
√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany
InRMB
| Companyname | Type | Mainbusine | Registeredcapital | Totalassets | Netassets | Turnover | Operatingprofit | NetProfit |
| ss | ||||||||
| ShenzhenSAPOPhotoelectricCo.,Ltd. | Subsidiary | Productionandsalesofpolarizer | 583,333,333.00 | 4,426,901,283.06 | 2,982,369,703.22 | 1,417,425,087.50 | 42,324,523.04 | 39,107,795.54 |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Subsidiary | Productionoffullyelectronicjacquardknittingwholeshape | 13,000,000.00 | 38,894,981.64 | 4,772,163.90 | 21,638,637.33 | -3,357,160.43 | -3,354,455.12 |
| ShenzhenLisiIndustrialCo.,Ltd. | Subsidiary | DomesticTrade,Propertymanagement | 2,360,000.00 | 36,640,494.39 | 29,783,754.79 | 3,753,060.07 | 826,082.57 | 833,983.26 |
| ShenzhenHuaqiangHotel | Subsidiary | Accommodation,businesscenter; | 10,005,300.00 | 22,038,970.59 | 20,683,064.79 | 0.00 | -104,525.92 | -105,334.38 |
| ShenzhenShenfangSungangPropertyManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,000,000 | 13,022,423.05 | 10,686,351.76 | 2,426,642.03 | 1,606,665.61 | 1,503,347.84 |
| ShenfangPropertyManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,600,400.00 | 13,520,038.63 | 8,352,492.11 | 7,239,222.11 | 548,477.45 | 512,134.50 |
| Shengtou（HK）Co.,Ltd. | Subsidiary | Salesofpolarizer | HKD10,000.00 | 6,802,025.90 | 6,710,825.91 | 0.00 | 591,310.11 | 591,310.11 |
| ShenzhenShengjinlianTechnologyCo.,Ltd. | Subsidiary | Polarizertechnologydevelopment,privatepropertyleasing,propertymanagement | 1,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Subsidiariesobtainedordisposedinthereportingperiod
□Applicable√NotapplicableNote：
ThefinancialdataofSAPOPhotoelectricmentionedinthetableabovearethefinancialstatementsdataofitsparentcompanyandnon-consolidatedstatementsdata.Shengtou（HK）Co.,Ltd.,ShenzhenShengjinlianTechnologyCo.,Ltd.aresubsidiariesofSAPOPhotoelectric.IX．StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableX.RisksfacingtheCompanyandcountermeasures
1.MacroeconomicriskTheoveralldomesticeconomicdevelopmentisinarecoverytrend,buttheinternationalgeopoliticalconflictscontinue,theSino-UStradefrictionsstillexist,theinternationaleconomicsituationisfacingmoreuncertainties,andthemacroeconomicuncertaintyandinstabilityhasincreasedsignificantly.TheCompany,asamemberoftheupstreammanufacturersofthedisplayproductmarket,cannotexcludetheriskthattheunpredictablemacroeconomicfluctuationsmayaffecttheCompany'sperformance.
Countermeasures:theCompanywillpaycloseattentiontotheeconomicsituation,activelystudyandjudgechangesinthemacrobusinessenvironment,studynationalpoliciesandindustrytrends,strengthenthetrackingandanalysisofmajorinformationintheindustry,timelygraspthedevelopmentandchangetrendoftheindustry,strengthentheabilityofearlywarningofbusinessrisks,timelyadjusttheCompany'soperationandmanagementstrategiesaccordingtothechangingmarketsituation.Meanwhile,theCompanywillcontinuetooptimizetheproductstructure,improvethemarketdevelopmentability,stimulatethevitalityofenterprisedevelopment,strengtheninternalmanagement,controlbusinessrisks,andensurethesteadydevelopmentoftheCompany.
2.Marketrisk
ThepolarizerindustryisanimportantpartofthedevelopmentofChina'snewdisplayindustry,thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologiesarechangingwitheachpassingday,andthedomesticsubstitutionprocessofpolarizerindustryisunderway.However,withthedevelopmentofnewdisplaytechnologiessuchasultra-largesizedisplay,OLEDdisplay,vehicledisplay,etc.,iftheCompany'stechnologyandproductscannotrespondtotheneedsoftheapplicationfieldintime,thewidepolarizerproductsandapplicationsarenotasexpected,orthemarketcompetitionintensifiesleadingtoadeclineinthepriceofdisplayproductsandtransmittingthepricereductionpressuretoupstreampolarizermarket,itwilladverselyaffecttheCompany.
Countermeasures:Inthefaceofcomplexmarketenvironment,theCompanywillactivelypromotetheintroductionofnewproductclients,improvetheproductbargainingpower,andstabilizethecustomerconfidence;Ontheotherhand,itwillmaintainclosecommunicationwithcustomersatalllevels,payattentiontoproductdemanddynamics,tapintomarketpotential,increasemarketshare,adheretotechnologicalinnovation,improveandoptimizetheR&Dinnovationsystem,continuouslyimprovetheyieldandutilizationrateofproductionlines,andenhancecorecompetitivenesstorespondtomarketrisks.
3.RiskofrawmaterialThecorepatentsofpolarizerterminalmaterialshavehightechnicalbarriersandarebasicallymonopolizedbyforeignmanufacturers.Thus,patentsarethemainreasonforlimitingthelocalizationofluminescentmaterials.Currently,thekeyrawmaterialsformanufacturingpolarizers,PVAfilmandTACfilm,arebasicallymonopolizedbyJapanesecompaniesandtheproductionlineandproductiontechnologyofupstreamsupportingrawmaterialsareconstrainedbytheJapaneseside.Comparedwiththeinternationalmanufacturer'scompleteindustrialchainmodelfromupstreamrawmaterialstopolarizerstodisplaypanels,theCompanydoesnothavethecorrespondingcompleteindustrialsupporttoplaytheroleinindustrialintegrationwhilethepriceofmajormembranematerialsisaffectedbythesupplier'sproductioncapacity,marketdemandandtheyenexchangerate,whichinfluencestheunitcostoftheCompany'sproducts.Countermeasures:Thecompanywillcontinuetooptimizethesupplychainsystem,improvethebargainingpowerwithsuppliers,increasetheR&Dofindependentintellectualpropertyrights,promotetheimportoflow-costrawmaterials,activelyexploretheimportsubstitutionofrawmaterials,improvetheutilizationandmaintainalowlevelofproductionlossrate,maintainproductionstabilityandcontinuity,andreduceproductproductioncosts;Ifnecessary,thecompanycanchooseexchangeratewealthmanagementproductssuchasforwardforeignexchangeandforeignexchangeoptionstoavoidexcessiveexchangelossescausedbysharpexchangeratefluctuations.
IV.CorporateGovernanceI.AnnualGeneralMeetingandProvisionalShareholders’MeetingsintheReportingPeriod
1.AnnualGeneralMeeting
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| TheFirstprovisionalGeneralMeetingof2023 | ProvisionalGeneralMeeting | 49.58% | March22,2023 | March23,2023 | AnnouncementNo.:2023-09www.cninfo.com.cn |
| AnnualGeneralMeetingof2022 | AnnualGeneralMeeting | 49.57% | May26,2023 | May27,2023 | AnnouncementNo.:2023-25www.cninfo.com.cn |
2.PreferredshareholderswiththerestorationofvotingrightsmadearequestfortheSpecialMeetingofShareholders
□Applicable√NotapplicableII.Changeinsharesheldbydirectors,supervisorsandseniorexecutives
□Applicable√NotapplicableThecompany'sdirectors,supervisorsandseniormanagersdidnotchangeduringthereportingperiod,pleaserefertothe2022annualreportIII.Pre-planforprofitallocationandturningcapitalreserveintosharecapitalforthereportingperiod
□Applicable√NotapplicableTheCompanyplannednottodistributecashdividendandbonusshare,andnottoconvertcapitalreservesintosharecapitalinhalfyear.IV.Implementationofanyequityincentiveplan,employeestockownershipplanorotherincentivemeasuresforemployees
√Applicable□Notapplicable
None
V.Environmental&SocialResponsibilityI.SignificantenvironmentalissuesWhethertheCompanyoranyofitssubsidiariesisidentifiedasakeypolluterbytheenvironmentauthorities
√Yes□NoPoliciesandindustrystandardsrelatedtoenvironmentalprotection(I)SAPOPhotoelectric:
1.Namesofimplementationstandardsforairpollutantemission:
①EmissionStandardofAirPollutantsforCoal-burningOil-burningGas-firedBoiler(DB44/765-2019);
②EmissionLimitofAirPollutantsDB44/27—2001;
③ThelimitvalueofelectroniccomponentsintheelectronicindustryinTianjin'sEmissionControlStandardforVolatileOrganicCompoundsinIndustrialEnterprises(DB12/524-2020)shallbeimplemented;
④EmissionStandardsforOdorPollutants(GB14554-93),StandardforFugitiveEmissionofVolatileOrganicCompounds(GB37822-2019).
2.Namesofimplementationstandardsforwaterpollutantdischarge:
DischargeLimitStandardforWaterPollutantsinGuangdongProvince(DB44/26-2001)
(II)BeautyCentury
1.RegulationsofGuangdongProvinceonEnvironmentalProtection
2.AdministrativeMeasuresforEcologicalEnvironmentStandardsEnvironmentalprotectionadministrativelicense(I)SAPOPhotoelectric:TheexistingsewagedischargepermitwasappliedonDecember13,2022,andisvalidfromDecember13,2022toDecember12,2027.(II)BeautyCentury:TheexistingsewagedischargepermitwasappliedonAugust10,2020,andisvalidfromAugust10,2020toAugust9,2023.(Thelicenserenewalhasbeenpassed,tobenotifiedtogetthenewcertificate).Industrialemissionstandardsandthespecificsituationofthepollutantemissioninvolvedintheproductionandbusinessactivities
| Companyorsubsidiaryname | MainpollutantandspecificpollutantTypeme | Mainpollutantandspecificpollutantname | Emissionway | Emissionportnumber | Emissionportdistributioncondition | Emissionconcentration(mg/Nm3) | Implementedpollutantemissionstandards | Totalemission | Verifiedtotalemission(Tons) | Excessiveemissioncondition |
| SAPOPhotoelectric | Exhaustgas | Non-methanetotalhydrocarbons | High-altitudeemission | 1 | Thedischargeportsarelocate | <50mg/m3 | 120mg/m3 | 21.9t/a | 49.98t/a | No |
| dontheeastsideoftheroofoftheNo.1andtheNo.3plant | ||||||||||
| SAPOPhotoelectric | Wastewater | COD | Nullahdischargeaftertreatment | Inthesoutheastsideofthefactory | <20mg/L | 40mg/L | 3.9347/a | 25.0536/a | No | |
| BeautyCentury | Wastewater | COD,ammonianitrogen,PH,suspendedsolids,five-daybiochemicaloxygendemand,totalphosphorus(notedinP),chromaticity,aniline,chlorinedioxide,sulfide,totalnitrogen(inN),ammonia(ammonia),non-methanetotalhydrocarbons,sulfides,odor(concentration) | Atmosphere:unorganized;Wastewater:1.Intermittentdischarge,unstableandirregularflowduringdischarge,butnotimpact-typedischarge;2.Intermittentdischarge,stableflowduringdischarge | 1 | Longitude:114°15′31.36″Latitude:22°43′38.14" | Permittedemissionvalue:PHvalue:6-9;Anilines:1.0mg/L;Suspendedsolids:50mg/L;Totalnitrogen(inN)15mg/L;Ammonianitrogen:8mg/L;Sulfide:0.5mg/L;Chemicaloxygendemand:60mg/L;Chlorinedioxide:0.5mg/L;chromaticity:50;Five-daybiochemicaloxygendemand:20mg/L;Totalphosphorus(inP)0.5mg/L; | GB4287-2012GB4287-2012WaterpollutantdischargelimitvalueDB44/26-2001,waterpollutantdischargestandardDB44/2050-2017inTamsuiRiverandShimaRiverBasin,waterpollutiondischargestandardGB4287-2012GB4287-2012intextiledyeingandfinishingindustry | 0.0135t/aCODcr:2.43t/a;Ammonianitrogen:0.27t/a;Totalnitrogen(inN)6.75t/a;Totalphosphorus(inP)0.0135t/a | CODcr:2.43t/a;Ammonianitrogen:0.27t/a;Totalnitrogen(inN)6.75t/a;Totalphosphorus(inP)0.0135t/a | No |
Treatmentofcontaminants
（I）SAPOPhotoelectric
RTOwastegasregenerativeincinerationprocessisadoptedfortheorganicwastegasproducedinallproductionlinesofSAPOPhotoelectric,andRTO+advancedtreatmentprocessisadoptedforLine7.RTOwastegastreatmentequipmentrunsstably,withgoodwastegastreatmenteffect.TheremovalrateofVOCsinorganicwastegasreachesover99%,whichcanfullymeettherequirementsofwastegasdischarge.Meanwhile,importedheatstoragematerialsareadoptedfortheequipment,withaheatstorageeffectof90%,andlowrunningenergyconsumptionoftheequipment;AfterRTOtreatment,thewastegasfromtheproductionprocessaftertreatmentcanmeetthedischargestandard.ThewastewatertreatmentfacilityofSAPOPhotoelectricPhaseIadoptsthewastewatertreatmentprocessofFenton+sedimentation+UASBanaerobic+aerobic+MBRmembrane,whichhasstrongimpactloadresistance,stablesystemoperation,lowenergyconsumption,lowmaintenancecost,highdegreeofautomationandgoodeffluenteffect.InphaseII,itadoptsFenton+sedimentation+UASBanaerobic+aerobic+MBRmembrane+mcmembranetreatment+evaporationsystem,andallthewastewaterisrecycledtotheproductionlineaftertreatment.AllthewastewaterofSAPOPhotoelectriccanmeettheenvironmentalprotectionrequirementsafterbeingtreatedbythetreatmentfacilities.TheconcentrationofVOCsatthedischargeportwasallcontrolledat〈40mg/m
.SAPOPhotoelectricPhaseIwastewatertreatmentfacilityadoptsFenton+precipitation+UASBanaerobic+aerobic+MBRmembranewastewatertreatmentprocess,whichhasstrongshockloadresistance,stablesystemoperation,lowenergyconsumption,lowmaintenanceandrepaircosts,highdegreeofautomation,andgoodwastewatertreatmenteffluenteffect.ThesecondphaseadoptsthewastewatertreatmentprocessofFenton+precipitation+UASBanaerobic+aerobic+MBRmembrane+mcmembranetreatment+evaporationsystem,andallthewastewaterisreusedtotheproductionlineaftertreatment.AllwastewaterofSAPOPhotoelectriccanmeettheenvironmentalprotectionrequirementsofstandarddischargeaftertreatmentinthefacilities,andtheCODconcentrationofthetotaldischargeis20mg/L.（II）BeautyCentury
BeautyCenturyupgradeditswastewatertreatmentprocess,homogenizingwaterqualityandquantity,hydrolyzingandtransforminginsolublecomplexorganicmatter,furtherremovingpollutants,greatlyreducingtheCODcrvalueinwastewater.Afterbeingtreatedbytreatmentfacilities,thewastewatercanreachthefirstlevelstandardforwaterpollutantdischargeinGuangdongProvince;Upgradethesludgedischargetreatmentprocess.Aftersludgeconcentration,useasludgewear-resistantpumptodriveittoaplateandframefilterpressformechanicaldehydration.Thesludgecakeisbaggedandhandedovertoaqualifiedunitfortreatment,whilethefilterpressfiltrateisleftfortreatmentinaregulatingtank.Effectivelyreducingtheconcentrationofammonianitrogen;Replacingnaturalgasboilersequippedwithlownitrogenburnerswithnaturalgasboilersequippedwithlownitrogenburnersgreatlyreducesnitrogenoxideemissions.Emergencyplanforsuddenenvironmentalevents(I)SAPOPhotoelectricAccordingtotheactualsituationofthecompany,theemergencyplanforsuddenenvironmentalincidentshasbeencompiled,andtheapplicationforfilingtheemergencyplanforsuddenenvironmentalincidentsbyrelevantdepartmentshasbeenpassed.（II）BeautyCenturySomecontentsfromtheemergencyplanforenvironmentaleventsareextractedasfollows:
Investigationandcontrolmeasuresforhiddendangersofenvironmentalrisks(I)SAPOPhotoelectricInvestmentinenvironmentalgovernanceandprotectioninfirsthalf2023:RMB5.82583million;Environmentalprotectiontaxpaidinfirsthalf2023:RMB：22899.67.（II）BeautyCentury
Investmentinenvironmentalgovernanceandprotectioninfirsthalf2023:RMB469.52;Environmentalprotectiontaxpaidinfirsthalf2023:RMB228.9967million.Environmentalprotectiontaxpaidin2022:RMB41,352,500.Costofpurchasingenvironmentalliabilityinsuranceinthefirsthalf2023:RMB12,116.85.EnvironmentalSelf-MonitoringProgram（I）SAPOPhotoelectricAccordingtothemonitoringrequirementsissuedbythemonitoringstationandtheoperationneedsofeachsystemofSAPOPhotoelectric,thespecificmonitoringschemeisasfollows:organicwastegas4times/year(onceperquarter),wastewaterdischarge12times/year(oncepermonth),boilerwastegas2times/year(onceeverysixmonths),includingnitrogenoxides12times/year(onceamonth),canteenoilfume1time/year,plantboundarynoise2times/year(onceeverysixmonths),drinkingwater1time/year,plantboundarywastegas1time/year.（II）BeautyCentury
Accordingtotheenvironmentalmanagementrequirementsofthesewagedischargepermit,thespecificmonitoringschemeisasfollows:automaticdetectionofwastewaterpHvalue,flow,CODandammonianitrogen,1time/dayforchromaticity,suspendedsolids,totalnitrogenandtotalphosphorus,five-daybiochemicaloxygendemand1time/week,sulfide,aniline1time/month,chlorinedioxide1time/year,plantboundaryammonia,non-methanetotalhydrocarbons,sulfide,odorconcentration1time/halfayear.Administrativepenaltiesforenvironmentalproblemsduringthereportingperiod
| Nameofcompanyorsubsidiary | Reasonsforpunishment | Violationsituation | Penaltyresult | Impactontheproductionandoperationoflistedcompanies | Company'srectificationmeasures |
| SAPOPhotoelectric | No | No | No | No | No |
| BeautyCentury | No | No | No | No | No |
OtherEnvironmentalInformationThatShouldBeDisclosed(I)SAPOPhotoelectricAnnualreportondisclosureofenterpriseenvironmentalinformationaccordingtolaw:https://www-app.gdeei.cn/stfw/indexAnnualimplementationreportofpollutantdischargepermit:http://permit.mee.gov.cn/(II)BeautyCenturyNoneMeasurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffects?Applicable□Notapplicable(I)SAPOPhotoelectric
1.Thecontroloftheairconditioningwatersysteminthefactoryareaisoptimized,andbymodifyingthecentralcontrolautomaticcontrolprogram,thestartingtemperatureoftheoriginalcoolingtowerfanischangedfrom>28°Cto>21°C;Outdoortemperaturegreaterthan23°Canddewpointgreaterthan14°Cbelongstothesummermode,thechilledwateroutlettemperatureisgenerallysetto7°C,itcanseethedehumidificationstatusoftheendairconditioningunit,improvethechilledwatergradualoutlettemperaturesetting,cansetintherangeof7-9°C;theoutdoortemperaturelessthan23°C,anddewpointgreaterthan14°Cbelongstothe
transitionmode,thefreezerloadlessthan60%andchilledwaterreturntemperatureislowerthan12°C,graduallyincreasethechilledwateroutlettemperaturesetting,itcansetrangein8-10°C;theoutdoortemperaturelessthan23°C,andthedewpointislessthan14°Cbelongstothewintermode,whenthefreezerloadislessthan60%andthechilledwaterreturnwatertemperatureislowerthan12°C,thechilledwateroutlettemperaturesettingisgraduallyincreased,andtherangecanbesetin8-10°C.Inthefirsthalfof2023,atotalof508,700yuanofelectricitycostsweresaved.
2.Adjustenergysavingforairconditioningatproductionlineshutdown,andformulateenergy-savingadjustmentplanforairconditioningforproductionandshutdownaccordingtotheshutdownandstart-upplanoftheproductionline;Aftertheproductionlineliaisons,theairconditionerenergysavingadjustmentiscarriedout,andtheadjustmenttimeisrecordedeverydaytocalculatetheenergysavingbenefits;Inthefirsthalfof2023,atotalof331,100yuanofelectricitycostsweresaved.（II）BeautyCentury
Throughtheimplementationofcleanerproductionsolutions,it’sestimatedtosave15,870m?/aofwater;saveelectricity17,525kwh/a;save213,200m?ofnaturalgasconsumption;reducewastewaterdischargeby9,870m?/a;reducerawmaterialconsumptionby12.59tons/year;saveabout8000sheetsofpaperperyear;reduceNOxemissionsby121.9kg/a;reducesulfurdioxideemissionsby33.26kg/a;reduceCODemissionsby
0.28t/a;reduceammonianitrogenemissionsby0.055t/aandreducetotalnitrogenemissionsby0.83t/a.OtherEnvironmentalRelatedInformationNoneII.Socialresponsibilities
Duringthereportingperiod,theCompanyearnestlyfulfilleditssocialresponsibilities,activelyparticipatedintheconsumptionassistancework,completedtheprocurementof534,900yuanofconsumptionassistance,andhelpedthecomprehensiverevitalizationofthecountrysidewithpracticalactions.
VI.ImportantEvents
I.Thefulfilledcommitmentsinthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebythecompany,shareholder,actualcontroller,acquirer,director,supervisor,seniormanagementpersonnelandotherrelatedparities.
√Applicable□Notapplicable
| Commitment | Commitmentmaker | Type | Contents | Timeofmakingcommitment | Periodofcommitment | Fulfillment |
| Commitmentonsharereform | ShenzhenInvestmentHoldingsCo.,Ltd. | Sharereductioncommitment | AsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldiscloseanannouncementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange. | August4,2006 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | TheCompany | StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided | Commitmentsmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothecompanyorinvestors,theCompanywillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontorelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheCompanyguaranteestheauthenticityandrationalityoftherelevantdataquotedinthistransactionplan.Asofthesigningdateofthistransactionplan,theauditandevaluationrelatedtothistransactionhavenotbeencompleted.Theauditedfinancialdata,evaluationorvaluationresultsoftheunderlyingassetsandtheauditedprofitforecastdata(ifinvolved)willbedisclosedintheRestructuringReport.Theauditedfinancialdataoftheunderlyingassetsmaybequitedifferentfromthedisclosureoftheplan;4.Duringthistransaction,theCompanywilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommission | December30,2022 | Sustainedandeffective | UnderFulfillment |
| andShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation. | ||||||
| Commitmentmadeupontheassetsreplacement | Allthedirectors,supervisorsandseniormanagersofthecompany | StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided | Commitmentsmadeduringassetrestructuring:1.Therelevantinformationprovidedbymeduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andIwillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothecompanyorinvestors,Iwillbeliableforcompensationaccordingtolaw.2.Iwillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothecompanyandrelevantintermediariesinatimelymanner,andatthesametimeIpromisethattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions.3.Duringthistransaction,Iwilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation.4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbyme,Iwillsuspendthetransferofthesharesinthecompanybeforetheconclusionofthecaseinvestigationisdetermined,andsubmitawrittenapplicationforsuspensionofthetransferandthestockaccounttotheboardofdirectorsofthecompanywithintwotradingdaysafterreceivingthenoticeoffilingtheinvestigation,andtheboardofdirectorsofthecompanywillapplytotheShenzhenStockExchangeandShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(hereinafterreferredtoas"CSDC")forlocking;Iftheapplicationforlockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthecompanyisauthorizedtodirectlysubmitmyidentityinformationandaccountinformationtoShenzhenStockExchangeandCSDCafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmitmyidentityinformationandaccountinformationtoShenzhenStockExchangeandCSDC,ShenzhenStockExchangeandCSDCareauthorizedtodirectlylocktherelevantstocks.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,Ipromisetolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassets | Allthedirectors,supervisorsandseniormanagersofthe | StatementandCommitmentonNoIllegal | Commitmentsmadeduringassetrestructuring:1.Therearenofalserecords,misleadingstatementsormajoromissionsintheapplicationdocumentsforthistransaction;2.Therightsandinterestsofthelistedcompanyarenotseriouslydamagedbythecontrollingshareholderoractualcontrollerandhavenotbeeneliminated;3.Thelistedcompanyanditssubsidiariesdonotprovideexternalguaranteesinviolationof | December30,2022 | Sustainedandeffective | UnderFulfillment |
| replacement | company | Acts | regulationsandhavenotbeenlifted;4.Thelistedcompany'sfinancialstatementsforthelatestyearandthefirststagehavenoauditreportswithqualifiedopinions,negativeopinionsordisclaimerofopinionsissuedbycertifiedpublicaccountants;5.Thelistedcompanyanditscurrentdirectors,supervisorsandseniormanagershavenotbeensubjectedtoadministrativepunishmentbytheChinaSecuritiesRegulatoryCommissioninthelast36months,andnorhavetheybeenpubliclycondemnedbythestockexchangeorfoundwithothermajoractsofdishonestyinthelast12months;6.ThelistedcompanyanditscurrentdirectorsandseniormanagershavenotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations,includingbutnotlimitedtoreceivingorforeseeingthedecision/noticeoffilinginvestigationbythejudicialauthorities,thenoticeoffilinginvestigationbytheChinaSecuritiesRegulatoryCommissionanditsdispatchedinstitutions,andtheadvancenoticeofadministrativepunishment,andthereisnoadministrativepunishment(exceptthoseobviouslyunrelatedtothesecuritiesmarket)orcriminalpunishment;7.Thelistedcompanyhasnoothercircumstancesthatseriouslydamagethelegitimaterightsandinterestsofinvestorsandsocialpublicinterests;8.Thedirectors,supervisorsandseniormanagersofthelistedcompanydonotdisclosetherelevantinsideinformationofthistransactionandusetheinsideinformationforinsidertrading. | |||
| Commitmentmadeupontheassetsreplacement | Allthedirectors,supervisorsandseniormanagersofthecompany | ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle13oftheGuidanceonSupervisionofListedCompaniesNo.7-SupervisionofAbnormalTradingofStocksRelatedto | Commitmentsmadeduringassetrestructuring:Thelistedcompany,itsdirectors,supervisors,seniormanagersandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationonsuspicionofinsidertradingrelatedtothistransaction;Inthelast36months,theyhavenotbeenpunishedbytheChinaSecuritiesRegulatoryCommissionorinvestigatedbythejudicialorgansforcriminalresponsibilityaccordingtolawforinsidertradingrelatedtomajorassetrestructuringoflistedcompanies,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| MajorAssetRestructuringofListedCompanies. | ||||||
| Commitmentmadeupontheassetsreplacement | Allthedirectors,supervisorsandseniormanagersofthecompany | ExplanationonWhetherThereisaReductionPlan | Commitmentmadeduringassetrestructuring:Fromthedateofresumptionoftradingtothecompletionofthistransaction,ifIholdsharesofthelistedcompany,Ihavenoplanstoreducethesharesofthelistedcompany. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | ShenzhenInvestmentHoldingsCo.,Ltd. | StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided | Commitmentmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theCompanywillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.Duringthistransaction,theCompanywilltimelydiscloseinformationaboutthistransactioninaccordancewithrelevantlawsandregulations,andrelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,andguaranteetheauthenticity,accuracyandcompletenessofsuchinformation;4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbytheEnterprise,theEnterprisewillsuspendthetransferofshareswithinterestsinthelistedcompany,andsubmitthewrittenapplicationforsuspensionoftransferandthestockaccounttotheboardofdirectorsofthelistedcompanywithintwotradingdaysafterreceivingthenoticeoffilingtheinvestigation,andtheboardofdirectorsofthelistedcompanywillapplytotheStockExchangeandtheDepositoryandClearingCompanyforlockingonitsbehalf;Iftheapplicationforlockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthelistedcompanyshallbeauthorizedtodirectlysubmittheidentity | December30,2022 | Sustainedandeffective | UnderFulfillment |
| informationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompanyafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmittheidentityinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompany,theStockExchangeandtheDepositoryandClearingCompanyareauthorizedtodirectlylocktherelevantshares.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,theEnterprisepromisestolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors. | ||||||
| Commitmentmadeupontheassetsreplacement | ShenzhenInvestmentHoldingsCo.,Ltd. | CommitmentonComplianceandIntegrity | Commitmentmadeduringassetrestructuring:1.TheCompanyhasnotbeensubjectedtoadministrativepunishment(exceptthoseobviouslyunrelatedtothesecuritiesmarket)orcriminalpunishmentinthelastthreeyears;2.TheCompanyisingoodcredit,withnopubliccondemnationbythestockexchangeorothermajordishonestyinthelast12months;Inthelastthreeyears,theCompanyhasnotbeenplacedonfileforinvestigationbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheCompanydoesnotdisclosetherelevantinsideinformationofthistransactionorusetheinsideinformationforinsidertrading;4.TheCompanydoesnotinfringetherightsandinterestsofthelistedcompany;5.TheCompanyguaranteesthatitiswillingtobearcorrespondinglegalresponsibilitiesifitviolatestheabovestatementsandcommitments. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | ShenzhenInvestmentHoldingsCo.,Ltd. | ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle13oftheGuidanceonSupervisionofListedCompaniesNo.7-SupervisionofAbnormalTradingofStocksRelate | Commitmentmadeduringassetrestructuring:ShenzhenInvestmentHoldingsandallitsdirectors,supervisors,seniormanagersandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationduetoinsidertradingrelatedtomajorassetrestructuring;Inthelast36months,theywerenotsubjectedtoadministrativepunishmentimposedbyChinaSecuritiesRegulatoryCommissionorinvestigatedforcriminalresponsibilitybyjudicialorgansaccordingtolaw,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| dtoMajorAssetRestructuringofListedCompanies | ||||||
| Commitmentmadeupontheassetsreplacement | ShenzhenInvestmentHoldingsCo.,Ltd. | ExplanationonWhetherThereisaReductionPlan | Commitmentmadeduringassetrestructuring:Duringtheperiodfromthedateofresumptionofthisrestructuringtothecompletionofthisrestructuring,theCompanyhasnoplanstoreducethesharesoflistedcompany. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | QimeiMaterial,HaoshengDanyang,DanyangRuoyan,XiamenRuoyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,lishuiHuahui,HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue | StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformationProvided | Commitmentmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheEnterpriseduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheEnterprisewillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theEnterprisewillbeliableforcompensationaccordingtolaw;2.TheEnterprisewillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsprovidedareauthentic,completeandaccurate,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandsealsonthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheEnterpriseguaranteesthatithasfulfilleditsstatutorydisclosureandreportingobligationsonthistransaction,andtherearenocontracts,agreements,arrangementsorothermattersthatshouldbedisclosedbutnotdisclosed.TheEnterpriseisawareofthepossiblelegalconsequencesoftheabovecommitments,andwillbearcorrespondinglegalresponsibilitiesforactsthatviolatetheabovecommitments;4.IfthistransactionisinvestigatedbythejudicialauthoritiesorbytheChinaSecuritiesRegulatoryCommissionbecauseoffalserecords,misleadingstatementsormajoromissionsintheinformationprovidedordisclosedbytheEnterprise,theEnterprisewillsuspendthetransferofshareswithinterestsinthelistedcompany,andsubmitthewrittenapplicationforsuspensionoftransferandthestockaccounttotheboardofdirectorsofthelistedcompanywithintwotradingdaysafterreceivingthenoticeoffilingtheinvestigation,andtheboardofdirectorsofthelistedcompanywillapplytotheStockExchangeandtheDepositoryandClearingCompanyforlockingonitsbehalf;Iftheapplicationfor | December30,2022 | Sustainedandeffective | UnderFulfillment |
| lockingisnotsubmittedwithintwotradingdays,theboardofdirectorsofthelistedcompanyshallbeauthorizedtodirectlysubmittheinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompanyafterverificationandapplyforlocking;IftheboardofdirectorsofthelistedcompanyfailstosubmittheinformationandaccountinformationoftheEnterprisetotheStockExchangeandtheDepositoryandClearingCompany,theStockExchangeandtheDepositoryandClearingCompanyareauthorizedtodirectlylocktherelevantshares.Ifanyviolationoflawsandregulationsisfoundduringtheinvestigation,theEnterprisepromisestolockinthesharesandvoluntarilyusethemforcompensationarrangementsofrelevantinvestors. | ||||||
| Commitmentmadeupontheassetsreplacement | HaoshengDanyang | CommitmentonComplianceandIntegrity | Commitmentmadeduringassetrestructuring:1.Thepenalties,regulatorymeasuresordisciplinaryactionssufferedbytheEnterpriseanditskeymanagementpersonnelinthelastfiveyearsareasfollows:(1)Mr.ChenRongsheng,theexecutivedirectoroftheEnterprise,receivedtheDecisiononTakingMeasurestoIssueWarningLetterstoCaiXiaoru,ChenRongsheng,LiuTieyingandHanYangissuedbyFujianSupervisionBureauofChinaSecuritiesRegulatoryCommission(DecisiononAdministrativeSupervisionMeasuresofFujianSupervisionBureauofChinaSecuritiesRegulatoryCommission[2020]No.6)onJanuary14,2020,duetothefailureofFuzhouDahuaIntelligentTechnologyCo.,Ltd.whereheservedasthegeneralmanagertodiscloseintimetheprogressofmajorequitytransfer,andthebreachofcontractforfailuretopayoffmajordebtsdue,theconclusionofimportantcontracts,andtheinsufficientbasisforimpairmentofavailable-for-salefinancialassets;(2)Mr.ChenRongsheng,theexecutivedirectoroftheEnterprise,receivedtheDecisiononGivinginformedcriticismtoFuzhouDahuaIntelligentTechnologyCo.,Ltd.andRelatedPartiesissuedbyShenzhenStockExchange(SZS[2019]No.311)onMay29,2019duetothefailureFuzhouDahuaIntelligentTechnologyCo.,Ltd.whereheservedasthegeneralmanager,toreplytotheShenzhenStockExchange'sinquiryandmakedisclosurewithintheprescribedtimelimitasrequired.Inadditiontotheabovecircumstances,theEnterpriseanditsmainmanagementpersonnelhavenotbeensubjectedtoothercriminalpenaltiesoradministrativepenalties(exceptthoseobviouslyunrelatedtothesecuritiesmarket),administrativesupervisionmeasuresbytheChinaSecuritiesRegulatoryCommissionordisciplinaryactionsbythestockexchangeinthelastfiveyears,andthereisnomajorcivillitigationorarbitrationrelatedtoeconomicdisputes;2.Inthelastfiveyears,theEnterprisehasnotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheEnterpriseanditsmainmanagementpersonnelinthelastfiveyearshadnofailuretorepaylargedebts,ortofulfilltheircommitments;4.TheEnterpriseanditsmainmanagementpersonnelhavenotdisclosedtherelevantinsiderinformationofthistransactionorusedtheinsiderinformationforinsidertrading;5.TheEnterprisehasnoneofthefollowingcircumstances:(1)Ithasalargeamountofdebt,whichisnotpaidoffatmaturityandisinacontinuousstate;(2)Ithasmajorillegalactsorsuspectedmajorillegalactsinthelast3years;(3)Ithasseriousactsofdishonestyinthesecuritiesmarketinthelast3years;(4)OthercircumstancesstipulatedbylawsandadministrativeregulationsanddeterminedbyChinaSecuritiesRegulatoryCommissionthatit | December30,2022 | Sustainedandeffective | UnderFulfillment |
| isnotallowedtoacquirelistedcompanies. | ||||||
| Commitmentmadeupontheassetsreplacement | HangzhouRencheng | CommitmentonComplianceandIntegrity | Commitmentmadeduringassetrestructuring:1.Thepenalties,regulatorymeasuresordisciplinaryactionsimposedontheEnterpriseanditsmainmanagementpersonnelinthelastfiveyearsareasfollows:(1)Ms.ZhangQiulireceivedtheDecisiononAdministrativePunishmentofChinaSecuritiesRegulatoryCommission(forLiShengkaiandZhangQiuliofFujianDaochongInvestmentManagementCo.,Ltd.)([2019]No.2)issuedbyChinaSecuritiesRegulatoryCommissiononJanuary18,2019duetothemanipulationofsecuritiesmarketbyFujianDaochongInvestmentManagementCo.,Ltd.,wheresheservedasthegeneralmanagerandexecutivedirector;(2)OnMarch31,2020,Ms.ZhangQiulireceivedtheDecisiononAdministrativePunishmentofChinaSecuritiesRegulatoryCommission(forLiShengkaiandZhangQiuliofFujianDaochongInvestmentManagementCo.,Ltd.)([2020]No.11)issuedbyChinaSecuritiesRegulatoryCommissionduetothereportedandundisclosedexcessiveshareholdinginJianyanGroup,andrestrictedtradingbehaviorofFujianDaochongInvestmentManagementCo.,Ltd.,wheresheservedasthegeneralmanagerandexecutivedirector.Inadditiontotheabovecircumstances,theEnterpriseanditsmainmanagementpersonnelhavenotbeensubjectedtoothercriminalpenaltiesoradministrativepenalties(exceptthoseobviouslyunrelatedtothesecuritiesmarket)inthelastfiveyears,andthereisnomajorcivillitigationorarbitrationrelatedtoeconomicdisputes;2.Inthelastfiveyears,theEnterprisehasnotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheEnterpriseanditsmainmanagementpersonnelhadnofailuretorepaylargedebts,ortofulfilltheircommitments,andwerenotsubjectedtoadministrativesupervisionmeasuresbytheChinaSecuritiesRegulatoryCommissionordisciplinarypunishmentbythestockexchangeinthelastfiveyears;4.TheEnterpriseanditsmainmanagementpersonnelhavenotdisclosedtherelevantinsiderinformationofthistransactionorusedtheinsiderinformationforinsidertrading;5.TheEnterprisehasnoneofthefollowingcircumstances:(1)Ithasalargeamountofdebt,whichisnotpaidoffatmaturityandisinacontinuousstate;(2)Ithadmajorillegalactsorsuspectedmajorillegalactsinthelast3years;(3)Ithadseriousactsofdishonestyinthesecuritiesmarketinthelast3years;(4)OthercircumstancesstipulatedbylawsandadministrativeregulationsanddeterminedbyChinaSecuritiesRegulatoryCommissionthatitisnotallowedtoacquirelistedcompanies. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | QimeiMaterial,DanyangNuoyan,XiamenNuoyan,FuzhouXintou,HefeiBeicheng,XingheTechnology,LishuiHuahui, | CommitmentonComplianceandIntegrity | Commitmentmadeduringassetrestructuring:TheEnterpriseanditsmainmanagementpersonnelhavenotbeensubjectedtocriminalpenaltiesoradministrativepenalties(exceptthoseobviouslyunrelatedtothesecuritiesmarket)inthelastfiveyears,andthereisnomajorcivillitigationorarbitrationrelatedtoeconomicdisputes;2.Inthelastfiveyears,theEnterprisehasnotbeeninvestigatedbythejudicialauthoritiesforsuspectedcrimesorbytheChinaSecuritiesRegulatoryCommissionforsuspectedviolationsoflawsandregulations;3.TheEnterpriseanditsmainmanagementpersonnelhadnofailuretorepaylargedebts,ortofulfilltheircommitments,andwerenotsubjectedtoadministrativesupervisionmeasuresbytheChinaSecuritiesRegulatoryCommissionordisciplinaryactionsbythestockexchangeinthelastfiveyears;4.TheEnterpriseanditsmainmanagementpersonnelhavenot | December30,2022 | Sustainedandeffective | UnderFulfillment |
| HuzhouPainuo,LishuiPengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue | disclosedtherelevantinsiderinformationofthistransactionorusedtheinsiderinformationforinsidertrading;5.TheEnterprisehasnoneofthefollowingcircumstances:(1)Ithasalargeamountofdebt,whichisnotpaidoffatmaturityandisinacontinuousstate;(2)Ithadmajorillegalactsorsuspectedmajorillegalactsinthelast3years;(3)Ithadseriousactsofdishonestyinthesecuritiesmarketinthelast3years;(4)OthercircumstancesstipulatedbylawsandadministrativeregulationsanddeterminedbyChinaSecuritiesRegulatoryCommissionthatitisnotallowedtoacquirelistedcompanies. | |||||
| Commitmentmadeupontheassetsreplacement | Qimeimaterial,HaoshengDanyang,DanyangNouyan,XiamenNouyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,LishuiHuhui,HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue | ExplanationontheAbsenceoftheCircumstancesStipulatedinArticle13oftheGuidanceonSupervisionofListedCompaniesNo.7-SupervisionofAbnormalTradingofStocksRelatedtoMajorAssetRestructuringofListedCompanies | Commitmentmadeduringassetrestructuring:TheEnterpriseanditsmainmanagementpersonnel(includingdirectors,supervisorsandseniormanagementpersonnelinthecaseofacompany;orexecutivepartnersandkeymanagementpersonnelinthecaseofapartnership),thecontrollingshareholderandactualcontrolleroftheEnterpriseandtheenterprisescontrolledbytheabove-mentionedentitieshavenotbeenplacedonfileforinvestigationduetoinsidertradingrelatedtomajorassetrestructuring;Inthelast36months,theywerenotsubjectedtoadministrativepunishmentimposedbyChinaSecuritiesRegulatoryCommissionorinvestigatedforcriminalresponsibilitybyjudicialorgansaccordingtolaw,whichdoesnotallowthemtoparticipateinanymajorassetrestructuringoflistedcompanies. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | Qimeimaterial,HaoshengDanyang,DanyangNouyan,XiamenNouyan,FuzhouXintou,HefeiBeicheng,HangzhouRencheng,XingheTechnology,LishuiHuhui,HuzhouPainuo,LishuiTengbei,FuzhouInvestment,XiamenZhifeng,JiaxingPainuo,HuzhouZhekuang,GuangdongXingzhi,GuangzhouBoyue | ExplanationontheOwnershipoftheUnderlyingAssets | Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetshasbeenfullypaid,andthereisnofalsecapitalcontributionorwithdrawalofcapitalcontribution,andtheEnterprisehascompleteownershipofthetargetassets,withnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Theunderlyingassetsarenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteesthattheabove-mentionedstatewillcontinueuntilthetransferoftheunderlyingassetstothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.TheEnterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipoftheabove-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneofunresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | HaoshengDanyang | ExplanationontheOwnershipoftheUnderlyingAssets | Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetshasbeenfullypaid,andthereisnofalsecapitalcontributionorwithdrawalofcapitalcontribution,andithascompleteownershipofthetargetassets,andthereisnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Exceptforthepledgeof267,857,146sharesoftheunderlyingcompanyheldbytheenterprise,theremainingunderlyingassetsheldbytheenterprisearenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteestoreleasetheaforementionedequitypledgebeforetheboardmeetingofthelistedcompanydeliberatesthereport(draft)ofthisrestructuring,andtomaintainthisstateafterthepledgeisreleaseduntilthetargetassetsaretransferredtothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.The | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Enterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipoftheabove-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneofunresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise. | ||||||
| Commitmentmadeupontheassetsreplacement | LishuiHuahui,XiamenZhifeng | ExplanationontheOwnershipoftheUnderlyingAssets | Commitmentmadeduringassetrestructuring:1.TheEnterpriselegallyownsthecorrespondingsharesofthetargetcompany,anditscapitalcontributiontothetargetassetswillbepaidinfullbeforeJanuary31,2023,andtherewillbenofalsecapitalcontributionorwithdrawalofcapitalcontribution,andtheEnterprisehascompleteownershipofthetargetassets,withnoothercircumstancesthatmayaffectthelegalexistenceofthetargetcompany;2.TheEnterpriseistheultimateandtrueowneroftheunderlyingassets,andtheownershipoftheunderlyingassetsisclearwithnodispute,andtherearenocircumstancesofholdingtheunderlyingassetsbymeansoftrust,entrustingothersoracceptingothers'entrustment;Theunderlyingassetsarenotincustody,withnopledge,mortgage,lienandothersecurityrightsorotherthird-partyrights,orothertermsoragreementsrestrictingtransfersigned,andnodisputeorpotentialdispute.Theunderlyingassetshavenotbeensealeduporfrozenbyadministrativeorjudicialorgans,andtherearenootherrestrictionsorprohibitionsontransfer.TheEnterpriseguaranteesthattheabove-mentionedstatewillcontinueuntilthetransferoftheunderlyingassetstothenameofthelistedcompanyoruntilthedateofterminationofthistransaction(whicheverisearlier);3.TheEnterprisepromisestochangetheownershipoftheunderlyingassetsinatimelymanneraccordingtotheagreementaftertherelevantagreementofthistransactioncomesintoeffect,andalltheresponsibilitiesarisingfromdisputescausedbytheEnterpriseintheprocessofownershipchangeshallbebornebytheEnterprise;4.Theownershipoftheabove-mentionedunderlyingassetstobetransferredbytheEnterprisehasnoneofunresolvedorforeseeabledisputessuchaslitigationandarbitration,andtheresponsibilitiesarisingfromdisputessuchaslitigationandarbitrationshallbebornebytheEnterprise. | December30,2022 | Sustainedandeffective | UnderFulfillment |
| Commitmentmadeupontheassetsreplacement | HengmeiPhotoelectric | StatementandCommitmentontheAuthenticity,AccuracyandCompletenessoftheInformatio | Commitmentmadeduringassetrestructuring:1.TherelevantinformationprovidedbytheCompanyduringthistransactionisauthentic,accurateandcomplete,anditisguaranteedthattherearenofalserecords,misleadingstatementsormajoromissions,andtheCompanywillbearindividualandjointlegalresponsibilitiesfortheauthenticity,accuracyandcompletenessoftheinformationprovided.Iftherearefalserecords,misleadingstatementsormajoromissionsintheinformationprovided,whichcauselossestothelistedcompanyorinvestors,theEnterprisewillbeliableforcompensationaccordingtolaw;2.TheCompanywillsubmitrelevantinformation,documentsandmaterials(includingbutnotlimitedtooriginalwrittenmaterials,electronicmaterials,duplicatematerialsandoraltestimony)requiredforthistransactiontothelistedcompanyandrelevantintermediariesinatimelymanner,andatthesametimeitpromisesthattheinformationanddocumentsofthepaperandelectronicmaterialsprovidedareauthentic,complete,accurateandreliable,therelevantduplicatematerialsorphotocopiesareconsistentwiththeoriginal,allsignaturesandseals | December30,2022 | Sustainedandeffective | UnderFulfillment |
| nProvided | onthedocumentsareauthenticandvalid,andthephotocopiesareconsistentwiththeoriginal,andthesignatoriesofthesedocumentshavelegallyauthorizedandeffectivelysignedthedocuments,andthattherearenofalserecords,misleadingstatementsormajoromissions;3.TheCompanyguaranteesthatithasfulfilleditsstatutorydisclosureandreportingobligationsonthistransaction,andtherearenocontracts,agreements,arrangementsorothermattersthatshouldbedisclosedbutnotdisclosed.TheCompanyisawareofthepossiblelegalconsequencesoftheabovecommitments,andwillbearcorrespondinglegalresponsibilitiesforactsthatviolatetheabovecommitments. | |||||
| Commitmentsmadeuponissuance | ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlynecessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority. | October9,2009 | Sustainedandeffective | UnderFulfillment |
| Commitmentsmadeuponissuance | ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | Thecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetitionwithShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile. | July14,2012 | Sustainedandeffective | UnderFulfillment |
| Executedtimelyornot? | Yes | |||||
| Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstageoftheworkingplan | Notapplicable | |||||
II.Particularsaboutthenon-operatingoccupationoffundsbythecontrollingshareholder
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
III.Illegalprovisionofguaranteesforexternalparties
□Applicable√NotapplicableNosuchcasesinthereportingperiod.IV.EngagementanddisengagementofCPAsfirmWhetherthesemi-annualfinancialreporthasbeenaudited
□Yes√NoThesemi-annualfinancialreportoftheCompanyhasnotbeenauditedV.Notesfor“non-standardauditreport”ofCPAsfirmduringtheReportingPeriodbyboardofdirectorsandsupervisoryboard
□Applicable√NotapplicableVI.Notesfortherelatedinformationof“non-standardauditreports”lastyearbyboardofdirectors
□Applicable√NotapplicableVII.Bankruptcyandrestructuring
□Applicable√NotapplicableNosuchcasesinthereportingperiod.VIII.LitigationsandarbitrationsMattersofImportantLawsuit
√Applicable□Notapplicable
| Basicsituationoflitigation(arbitration) | Amountinvolved(Tenthousandyuan) | Whethertoformestimatedliabilities | Litigation(arbitration)progress | Litigation(arbitration)trialresultsandimpact | Implementationoflitigation(arbitration)judgments | Disclosuredate | Disclosureindex |
| JinhangFundv.SAPOPhotoelectricDissolutionDispute | 0 | No | TheCourthasruledtowithdrawthecase | TheplaintiffJinhangFundwithdrewthelawsuit,whichdidnotaffecttheCompany'soperation. | Notapplicable | April11,2023 | http://www.cninfo.com.cn（AnnouncementNo.:2023-19） |
| JinhangFundv.SAPOPhotoelectricShareholders'Rightto | 0 | No | TheCourthasruledtowithdrawthecase | TheplaintiffJinhangFundwithdrewthelawsuit,whichdidnotaffect | Notapplicable | April11,2023 | http://www.cninfo.com.cn（AnnouncementNo.:2023-19） |
| KnowDispute | theCompany'soperation. | ||||||
| JinhangFundv.SAPOPhotoelectricResolutionValidityConfirmationDispute | 0 | No | Thecourthasruledtodismissalloftheplaintiff'sclaims. | ThecourtdismissedallclaimsoftheplaintiffJinhangFund. | Notapplicable | June1,2023 | http://www.cninfo.com.cn（AnnouncementNo.:2023-28） |
Otherlitigationmatters
√Applicable□Notapplicable
| Basicsituationoflitigation(arbitration) | Amountinvolved(tenthousandyuan) | Whethertoformestimatedliabilities | Litigation(arbitration)progress | Litigation(arbitration)trialresultsandimpact | Implementationoflitigation(arbitration)judgments | Disclosuredate | Disclosureindex |
| ShenzhenShenbaoLightTextileIndustryandTradeCo.,LtdManagerv.theCompany,ShenzhenYuanxingchangIndustryCo.,Ltd,SuXingbininLiquidationLiabilityDispute | 256.75 | No | TheplaintiffsuedtheCompany,ShenzhenYuanxingchangIndustrialCo.,LtdandSuXingbin,demandingthatthethreedefendantsbearjointandseveralliabilityforthedebtsof2,567,479.11yuanofShenbaoCompany.ThecasewasheardinthefirstinstanceonMay27,2022andJune30,2022.TheCompanywonthecaseinthefirst-instance,andtheplaintiffhadfiledanappeal,andthecasewasopenedbythesecond-instancecourtinFebruary2023,anditisstillpending. | Thetrialhasnotbeencompleted,andityethasnoimpactontheCompany'soperation | Pendingtrial | Notapplicable | |
| ShenzhenLubanConstructionSupervisionCo.,Ltd(applicant)andtheCompany'sconstructionprojectsupervisioncontractdisputecase | 796.16 | No | TheapplicantsuedtheCompany,demandingthattheCompanypaystheoverduesupervisionfee,occupancyinterestandlatepaymentfeeofGuanhuaBuildingtotalingin7,961,641.01yuan.Presently,thetwopartieshavesettled,theCompanyhascompletedtheexecutioninaccordancewiththesettlementagreement,theapplicanthassubmittedanapplicationforwithdrawaltotheShenzhenArbitrationCommissiononJune25,2023,andthearbitrationcommissionhasmadeadecisiontowithdrawthecaseonJune30,2023. | ThesettlementfeewaspaidbyGuanhuaCompanyandhadnoimpactontheCompany'soperation | Ithasbeenimplementedinaccordancewiththesettlementagreement. | Notapplicable | |
| GuanChonghengv.theCompany'sRightto | 234.55 | No | TheplaintiffrequestedthattheCompanybeorderedtoperformthedecisionoftheeighthmeetingoftheboardofdirectorsofGuanhuaBuildingin2012andpaythe | Theplaintiffhaswithdrawnthe | Thecasehasbeenwithdrawn | Notapplicable |
| RecourseDisputeCase | upfrontexpensesof1,325,100yuanandinterestlossesof1,020,369yuaninlieuofGuanhuaBuildingintheearlystage.ThecasewasheardonApril18,2023,andtheplaintiffsubmittedanapplicationforwithdrawaltothecourtincourt,andthecourtissuedarulingonthesamedayallowingtheplaintifftowithdrawthelawsuit. | lawsuitandithasnoimpactontheCompany'soperations | |||||
| ShenzhenDingxiangInvestmentCo.,LtdandShenzhenUnitedEquityExchangeCo.,LtdandtheCompanyconcludedadisputeoverliabilityfornegligence | 390 | No | TheplaintiffsuedtheCompanyandtheUnitedEquityExchangeforthereturnofthe3.9-million-yuandepositplusinterest.TheCompanylostthecaseinthefirst-instance,andthecourtruledthattheCompanyneededtoreturnthedepositandinterestof3.9millionyuan;TheCompanywonthelawsuitinthesecond-instance,anduponthesecond-instancethecourtruledtorevokethefirst-instancejudgmentanddismisstheplaintiff'sclaim.TheplaintifffiledaretrialwiththeGuangdongProvincialHighCourt,whichruledonJune13,2023withrejectiontoDingxiangInvestment'sapplicationforretrial. | Ithasbeenimplementedinaccordancewiththeoriginalsecond-instancejudgmentandithasnoimpactontheCompany'soperation. | Ithasbeenimplementedinaccordancewiththeoriginaljudgmentofthesecondinstance. | Notapplicable | |
| LiuGuoweiv.theCompanyLaborDisputeCase | 10 | No | TheplaintiffrequestedtheCompanytopaythepensioninsurancefortheperiodof1989-1999andtocompensate100,000yuan.ThecasewillbeheardinFutianDistrictCourtonOctober19,2023. | IthasnoimpactontheCompany'soperations | Yetnotinsession | Notapplicable | |
| ShenzhenChimingElectronicsCo.,Ltdv.ZhangZipingandtheCompanyhousingleasecontractdisputecase | 7.37 | No | TheplaintiffsuedZhangZipingandtheCompanyforrentreductionof73,710yuan,anddemandedthatZhangZipingreturnsthedepositof31,200yuanandpaysliquidateddamagesof30,000yuan.ThecasewillbeheardinFutianDistrictCourtonAugust23,2023. | IthasnoimpactontheCompany'soperations | Yetnotinsession | Notapplicable |
IX.Punishmentsandrectifications
□Applicable√Notapplicable
X.CreditconditionsoftheCompanyaswellasitscontrollingshareholderandactualcontroller
□Applicable√NotapplicableXI.Materialrelatedtransactions
1.Relatedtransactionsinconnectionwithdailyoperation
?Applicable□Notapplicable
| Relatedparties | Relationship | Typeoftrade | Subjectsoftherelatedtransactions | Principleofpricingtherelatedtransactions | Priceoftrade | Amountoftrade(Tenthousand) | Ratioinsimilartrades | Tradinglimitapproved(Tenthousandyuan) | Whetherovertheapprovedlimitedornot(Y/N) | Wayofpayment | Marketpriceofsimilartradeavailable | Dateofdisclosure | Indexofinformationdisclosure |
| HengmeiPhotoelectric | Other | Sellproductsandcommoditiestorelatedpersons | Salesofcontractcoatingproducts | Basedonmarketprice | MarketPrice | 474.46 | 100.00% | 1,100 | No | T/T | 474.46 | August24,2023 | www.cninfo.com.cn.AnnouncementNo.:2023-024,August24,2023. |
| HengmeiPhotoelectric | Other | Purchaseofservice | Procurementof | Basedonmarketprice | MarketPrice | 83.43 | 100.00% | 1,400 | No | T/T | 83.43 | August24,2023 | www.cninfo.com.cn.AnnouncementNo.:2023-024,August24,2023. |
| fromtheRelatedperson | RTPOEMservices | ||||||||||||
| HengmeiPhotoelectric | Other | PurchaseofrawmaterialsfromtheRelatedperson | Buyopticalfilm | Basedonmarketprice | MarketPrice | 368.07 | 100.00% | 1,500 | No | T/T | 368.07 | August24,2023 | www.cninfo.com.cn.AnnouncementNo.:2023-024,August24,2023. |
| Total | -- | -- | 925.96 | -- | 4,000 | -- | -- | -- | -- | -- | |||
| Detailsofanysalesreturnofalargeamount | Notapplicable | ||||||||||||
| Givetheactualsituationinthereportperiodwhereaforecasthadbeenmadeforthetotalamountsofroutinerelated-partytransactionsbytypetooccurinthecurrentperiod(ifany) | Notapplicable | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | Notapplicable | ||||||||||||
2.Related-partytransactionsarisingfromassetacquisitionorsold
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
3.Related-partytransitionswithjointinvestments
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
4.Creditsandliabilitieswithrelatedparties
√Applicable□NotapplicableDoesthereexistnon-operatingcurrentassociatedrightsofcreditandliabilities
□Yes√NoNosuchcasesinthereportingperiod.
5.Transactionswithrelatedfinancecompany,especiallyonethatiscontrolledbytheCompany
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
6.TransactionswithrelatedfinancecompanycontrolledbytheCompany
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
7.Othersignificantrelated-partytransactions?Applicable□Notapplicable
TheCompanyintendstopurchase100%oftheequityofHengmeiPhotoelectricbyissuingsharesandpayingcash,andintendstoraisematchingfundsfromnomorethan35eligiblespecificobjectsbynon-publicofferingofshares(hereinafterreferredtoasthe"Transaction").Thistransactionconstitutesarelatedpartytransaction,whichisexpectedtoconstituteamajorassetrestructuring,butdoesnotconstitutearestructuringlisting,andthistransactionwillnotleadtoachangeintheactualcontrolleroftheCompany.Thewebsitetodisclosetheinterimannouncementsonsignificantrelated-partytransactions
| Descriptionofprovisionalannouncement | Dateofdisclosingprovisionalannouncement | Descriptionofthewebsitefordisclosingprovisionalannouncements |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | January30,2023 | http://www.cninfo.com.cn |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | February28,2023 | http://www.cninfo.com.cn |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | March31,2023 | http://www.cninfo.com.cn |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | April29,2023 | http://www.cninfo.com.cn |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaise | May31,2023 | http://www.cninfo.com.cn |
| MatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | ||
| Specialexplanationonbeingunabletoissuenoticeofconveningashareholders'meetingwithinthespecifiedperiodontheprogressofissuingsharesandpayingcashtopurchaseassetsandraisematchingfundsnamelytherelatedpartytransaction | June28,2023 | http://www.cninfo.com.cn |
| ProgressannouncementtheProposalon"PlanforShenzhenTextile(Holdings)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction | July28,2023 | http://www.cninfo.com.cn |
XII.Significantcontractsandexecution
1.Entrustments,contractingandleasing
（1）Entrustment
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
（2）Contracting
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
（3）Leasing
□Applicable√NotapplicableNosuchcasesinthereportingperiod.
2.SignificantGuarantees
√Applicable□Notapplicable
InRMB10,000
| GuaranteeoftheCompanyforthecontrollingsubsidiaries(Excludecontrolledsubsidiaries) | ||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) |
| Guaranteeofthecompanyforitssubsidiaries | ||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.of | AmountofGuarantee | Dateofhappening(Dateofsigning | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementation | Guaranteeforassociated |
| theguaranteedamount | agreement) | ornot | parties(Yesorno) | |||||||
| SAPOPhotoelectric | March18,2020 | 48,000 | September8,2020 | 39,391.47 | Guaranteeingofjointliabilities | Twoyearsfromthedateofexpirationoftheprincipaldebt | No | No | ||
| Totalofguaranteeforsubsidiariesapprovedintheperiod(B1) | 0 | Totalofactualguaranteeforsubsidiariesintheperiod(B2) | 0 | |||||||
| Totalofguaranteeforsubsidiariesapprovedatperiod-end(B3) | 48,000 | Totalofactualguaranteeforsubsidiariesatperiod-end(B4) | 39,391.47 | |||||||
| Guaranteeofthesubsidiariesforthecontrollingsubsidiaries | ||||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranty（Ifany） | Counter-guarantee（Ifany） | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) |
| TheCompany’stotalguarantee(i.e.totalofthefirstthreemainitems) | ||||||||||
| Totalguaranteequotaapprovedinthereportingperiod（A1+B1+C1） | 0 | Totalamountofguaranteeactuallyincurredinthereportingperiod（A2+B2+C2） | 0 | |||||||
| Totalguaranteequotaalreadyapprovedattheendofthereportingperiod（A3+B3+C3） | 48,000 | Totalbalanceoftheactualguaranteeattheendofthereportingperiod（A4+B4+C4） | 39,391.47 | |||||||
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4）% | 13.80% | |||||||||
| Including： | ||||||||||
| Amountofguaranteeforshareholders,actualcontrolleranditsassociatedparties（D） | 0 | |||||||||
| ThedebtsguaranteeamountprovidedfortheGuaranteedpartieswhoseassets-liabilityratioexceed70%directlyorindirectly（E） | 0 | |||||||||
| Proportionoftotalamountofguaranteeinnetassetsofthecompanyexceed50%（F） | 0 | |||||||||
| TotalguaranteeAmountoftheabovementionedguarantees（D+E+F） | 0 | |||||||||
Descriptionoftheguaranteewithcomplexmethod:None
3.SituationofEntrustedFinance
√Applicable□Notapplicable
InRMB10，000
| Specifictype | Sourceoffundsforentrustedfinancialmanagement | TheOccurredAmountofEntrustedWealth-management | Unduebalance | Amountoverdue | Un-recoveredofoverdueamount |
| Bankfinancialproducts | Selffund | 40,000.00 | 45,000.00 | 0 | 0 |
| Other | Selffund | 8,180.77 | 15,641.32 | 0 | 0 |
| Total | 48,180.77 | 60,641.32 | 0 | 0 | |
Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal
√Applicable□Notapplicable
InRMB10,000
| NameofTrusteeOrganization(orTrusteeName) | TypeofTrusteeOrganization(orTrustee) | ProductType | Amount | CapitalSource | StartDate | ExpiryDate | FundsAllocation | MethodofRewardDetermination | ReferenceAnnualizedRateofReturn | ExpectedIncome(ifany) | Actualprofitandlossduringthereportingperiod | Theactualrecoveryofprofitandlossduringthereportingperiod | Amountofprovisionforimpairment(ifany) | Whetherpassedthestatutoryprocedure | Whetherthereisanyentrustedfinancialplaninthefuture | Summaryofeventsandrelatedsearchindex(ifany) |
| BankofChina | Bank | Structuraldeposits | 25,000 | Selffunds | January9,2023 | July7,2023 | moneymarketinstrument | Alump-sumpaymentwhendue | 3.40% | 416.85 | 0.00 | Notexpired | Yes | Notapplicable | ||
| BankofCommunication | Bank | Structuraldeposits | 15,000 | Selffunds | January9,2023 | July12,2023 | moneymarketinstrument | Alump-sumpaymentwhendue | 3.36% | 254.07 | 0.00 | Notexpired | Yes | Notapplicable | ||
| SouthernFundManagemen | Funds | Monetary | 15,641.32 | Selffunds | December16,2022 | Long-term | Other | RedemptiononTday, | 2.19% | 0.00 | 0.00 | Notexpired | Yes | Notapplicable |
| tCo.,Ltd | Fund | arrivalonT+1day | ||||||||||||||
| Total | 55,641.32 | -- | -- | -- | -- | -- | -- | 670.92 | 0.00 | -- | -- | -- | -- | |||
Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment
□Applicable√Notapplicable
4.Othersignificantcontract
□Applicable√NotapplicableXIII.Explanationonothersignificantevents
√Applicable□Notapplicable
(I)Issuesharestopurchaseassetsandraisesupportingfunds
AccordingtotherelevantregulationsofShenzhenStockExchange,upontheapplicationofthecompany,thesharesofthecompanyweresuspendedfromtradingonthemorningofDecember19,2022.OnDecember30,2022,thecompanyheldthenineteenthmeetingoftheEighthBoardofDirectorsandthethirteenthmeetingoftheEighthBoardofSupervisors,anddeliberatedandpassedtheProposalonthe"PlanforShenzhenTextile(Group)Co.,Ltd.toIssueShares,PayCashtoPurchaseAssetsandRaiseMatchingFundsandRelatedPartyTransactions"andItsSummaryandotherproposalsrelatedtothistransaction.Thecompany'ssharesresumedtradingonthemorningofJanuary3,2023.TheCompanyintendstopurchase100%equityofHengmeiPhotoelectricCo.,Ltd.byissuingsharesandpayingcash,andatthesametime,itplanstoraisematchingfundsfromnon-publicofferingofsharestonomorethan35qualifiedspecifictargets(hereinafterreferredtoas"thistransaction").Thistransactionconstitutesarelatedpartytransactionandisexpectedtoconstituteamajorassetrestructuring,butitdoesnotconstitutearestructuringandlisting,norwillitleadtothechangeoftheactualcontrollerofthecompany.Thistransactionisconducivetothecompany'sstrongallianceinthepolarizerindustry,rapidlyincreasingtheproductionscaleofpolarizers,optimizingthelayoutofindustrialchainanddeepeningthedepthoftechnicalreserves,makingthecompanymovetowardsanewlevelofhigh-qualitydevelopment.Meanwhile,thismajorassetrestructuringisinlinewiththerelevantdevelopmentstrategiesofthecountryandShenzhen,andhaspositivesignificanceforensuringthesecurityofthenationalnewdisplaysupply
Sincethedisclosureofthetransactionplan,theCompanyandtherelevantpartieshaveactivelypromotedtheaudit,evaluation,duediligenceandotherworkinvolvedinthistransaction.Accordingtotherequirementsofrelevantlawsandregulations,theCompanyshallconvenethemeetingoftheboardofdirectorsbeforeJune30,2023toconsiderthedraftrestructuringreportandissueanoticeofconveningageneralmeetingofshareholders.Sincethevalidityperiodofthefinancialdataofthetargetcompanyofthistransactionisabouttoexpire,theintermediaryintendstoconductadditionalauditsandsupplementaryduediligence,andtheCompanystillneedstocommunicateandnegotiatethedetailsofthetransactionwiththecounterparty,thereisuncertaintyastowhethertoadjusttherestructuringplan,thereforetheCompanycannotdisclosethedraftrestructuringreportplanandissueanoticeofconveningageneralmeetingofshareholdersbeforeJune30,
2023.Aftermutualconsensusamongallpartiesinvolvedinthetransaction,theCompanywillcontinuetoadvancethistransaction.
Fordetails,pleaserefertotheCompany'sAnnouncementNo.2023-29onCNINF(http://www.cninfo.com.cn).Presently,theCompanyisfurthercommunicatingandnegotiatingthedetailsofthetransactionwiththecounterparty,andcoordinatingwithvariousintermediariestocarryoutadditionalaudit,assessmentandsupplementaryduediligenceofthetargetcompany,aswellasnegotiatingwiththecounterpartytodeterminethetransactionplanandperformthestate-ownedassetsapprovalprocedures.Uponcompletionoftherelevantwork,theCompanywillreconvenethemeetingoftheBoardofDirectorstoconsidermattersrelatedtothetransaction,andthedateoftheannouncementoftheresolutionoftheBoardofDirectorswillbeusedasthepricingreferencedateforthesharestobeissuedforthetransaction.
（2）DisposalofassetsofthejointventurecompanyShenzhenXieli
ShenzhenXieliAutomobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isaSinoforeignjointventureestablishedbythecompanyandHongKongXieliMaintenanceCompanyin1981,witharegisteredcapitalof3.12millionyuan.Thecompanyholds50%oftheequity.Thecompany'soperatingperiodendedin2008anditsbusinesslicensewasrevokedin2014.Thecompany'smainassetsarerealestate.InMarch2020,ShenzhenXieliIndustrialandCommercialCo.,Ltd.hasbeencancelled,buttherearestillthreepropertiesunderitsnamethatneedtoberesolvedthroughfurthernegotiationbetweentheshareholdersofbothparties.
OnJuly26,2021,theCompanyfiledacomplaintwiththePeople'sCourtofYantianDistrict,ShenzhenCity,GuangdongProvincetorevoketheapprovalofcancelationofShenzhenXieliAutomobileEnterpriseCo.,LtdbytheShenzhenMarketSupervisionandAdministrationBureau.InNovember2021,thecourtruledtorevoketheaforementionedapprovalofcancellation.HongKongXieliMaintenanceCompanyandShenzhenMarketSupervisionandAdministrationBureauwerenotsatisfiedandsubmittedappealpetitionstotheShenzhenIntermediatePeople'sCourtrespectively.OnJune28,2022,theShenzhenIntermediatePeople'sCourtruledinthesecondinstance:revokedtheadministrativejudgment-No.1883(2021)Yue0308XingchuoftheYantianDistrictPeople'sCourtofShenzhenCity,GuangdongProvince,andremandedittotheYantianDistrictPeople'sCourtofShenzhenCity,GuangdongProvinceforanewtrial.Afteranewtrial,theYantianDistrictPeople'sCourtruledinfavoroftheCompanyonDecember30,2022,andrevokedtheadministrativeactofShenzhenXielitocancelitsregistration.Thethirdpartyintheoriginaltrial,HongKongXieliMaintenanceCompany,wasnotsatisfiedandappealedtotheShenzhenIntermediatePeople'sCourtonJanuary10,2023.Later,asHongKongXieliMaintenanceCompanyfailedtopaythecaseacceptancefeeinadvance,theShenzhenIntermediatePeople'sCourtissuedtheNo.387(2023)Yue03XingFinalAdministrativeRuling,rulingthattheappellantHongKongXieliMaintenanceCompanyinthecasewithdrawsitsappeal.
（3）Mattersonwaivingthepreemptiverightandequitytransferofcontrollingsubsidiaries
Theshareholders'meetingofSAPOPhotoelectric,thecompany'sholdingsubsidiary,agreedthatHangzhouJinhangEquityInvestmentFundPartnership(limitedpartnership)wouldtransfer40%ofitsshareholdinginSAPOPhotoelectrictoHengmeiPhotoelectricCo.,Ltd.Fordetails,seehttp//www.cninfo.com.cn（http://www.cninfo.com.cn）CompanyAnnouncementNo.2023-01.OnJanuary19,2023,SAPOPhotoelectricobtainedthe"RegistrationNotice"issuedbytheShenzhenMunicipalMarketSupervisionandAdministrationBureau,andtheindustrialandcommercialchangeregistrationproceduresforthisequitytransfer
havebeencompleted.Afterthischange,thecompanystillholds60%equityofSAPOPhotoelectric,whileHengmeiPhotoelectricholds40%equityofSAPOPhotoelectric.Thisequitytransferisconducivetosynergizingtheadvantagesofbothpartiesinthepolarizerindustry,integratinghigh-qualityresourcesofbothparties,furtheroptimizingandstrengtheningthemainpolarizerindustry,andbetterenhancingthecorecompetitivenessoflistedcompanies.XIV.SignificanteventofsubsidiaryoftheCompany
√Applicable□NotapplicableAbouttheprogressoftheCompanyanditsholdingsubsidiariesinvolvedinlitigationIntheabove-mentionedlawsuits,concerningthedissolutiondisputeofSAPOPhotoelectricandthedisputeovershareholders'righttoknow,thePeople'sCourtofPingshanDistrictofShenzhenCity,GuangdongProvincereceivedtheplaintiff'sapplicationforwithdrawalonMarch30,2023,andmadearulingonApril6,2023.TheCompanyandSAPOPhotoelectrichavereceivedtheCivilRulingsoftheabovetwocases,withtherulingsasfollows:Theplaintiff'swithdrawalofthelawsuitisaself-dispositionofitsrightofaction,whichdoesnotviolatethelaw,doesnotharmtheinterestsofthestate,thecollectiveandothers,anditisallowedaccordingtolaw.Fordetails,pleaserefertotheCompany'sAnnouncementNo.2023-19onCNINF(http://www.cninfo.com.cn).Inaddition,onMay25,2023,thePeople'sCourtofPingshanDistrictofShenzhenCity,GuangdongProvincerenderedafirst-instancejudgmentintheabove-mentioneddisputecaseovertheconfirmationofthevalidityoftheresolutionofSAPOPhotoelectric,andtheCompanyandSAPOPhotoelectrichavereceivedtheCivilJudgmentoftheabove-mentionedcase,withthejudgmentisasfollows:allclaimsoftheplaintiffJinhangFundaredismissed.
Fordetails,pleaserefertotheCompany'sAnnouncementNo.2023-28onCNINF(http://www.cninfo.com.cn).
VI.ChangeofsharecapitalandshareholdingofPrincipalShareholdersI.Changesinsharecapital
1.Changesinsharecapital
Inshares
| Beforethechange | Increase/decrease（+，-） | AftertheChange | |||||||
| Amount | Proportion | Shareallotment | Bonusshares | Capitalizationofcommonreservefund | Other | Subtotal | Quantity | Proportion | |
| 1.Shareswithconditionalsubscription | 72,000 | 0.01% | 0 | 0 | 0 | 0 | 0 | 72,000 | 0.01% |
| 1.State-ownedshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.State-ownedlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Otherdomesticshares | 72,000 | 0.01% | 0 | 0 | 0 | 0 | 0 | 72,000 | 0.00% |
| Incl：Domesticlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| DomesticNaturalPersonshares | 72,000 | 0.01% | 0 | 0 | 0 | 0 | 0 | 72,000 | 0.01% |
| 4.Foreignshare | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Incl：Foreignlegalpersonshare | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| ForeignNaturalPersonshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II.Shareswithunconditionalsubscription | 506,449,849 | 99.99% | 0 | 0 | 0 | 0 | 0 | 506,449,849 | 99.99% |
| 1.CommonsharesinRMB | 457,021,849 | 90.23% | 0 | 0 | 0 | 0 | 0 | 457,021,849 | 90.23% |
| 2.Foreignsharesindomesticmarket | 49,428,000 | 9.76% | 0 | 0 | 0 | 0 | 0 | 49,428,000 | 9.76% |
| 3.Foreignsharesinforeignmarket | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.Totalofcapitalshares | 506,521,849 | 100.00% | 0 | 0 | 0 | 0 | 0 | 506,521,849 | 100.00% |
Reasonsforsharechanged
□Applicable√NotapplicableApprovalofChangeofShares
□Applicable√NotapplicableOwnershiptransferofsharechanges
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
□Applicable√NotapplicableOtherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changeofshareswithlimitedsalescondition
□Applicable√NotapplicableII.Securitiesissueandlisting
□Applicable√NotapplicableIII.Numberofshareholdersandshareholding
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 27,717 | Totalnumberofpreferredshareholdersthathadrestoredthevotingrightattheendofthereportingperiod(ifany)(note8) | 0 | |||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | ||||||||||
| Shareholders | Natureofshareholder | Proportionofsharesheld（%） | Numberofsharesheldatperiod-end | Changesinreportingperiod | Amountofrestrictedsharesheld | Amountofun-restrictedsharesheld | Numberofsharepledged/frozen | |||
| Stateofshare | Amount | |||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | State-ownedlegalperson | 46.21% | 234,069,436 | 0 | 0 | 234,069,436 | ||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | State-ownedLegalperson | 3.18% | 16,129,032 | 0 | 0 | 16,129,032 | ||||
| SunHuiming | DomesticNatureperson | 1.26% | 6,399,653 | 190,800 | 0 | 6,399,653 | ||||
| ZhangzhouXiaotianVentureInvestmentCo.,Ltd. | DomesticNon-State-ownedLegalperson | 0.83% | 4,188,800 | 1,264,300 | 0 | 4,188,800 | ||||
| SuWeipeng | DomesticNatureperson | 0.71% | 3,580,000 | 0 | 0 | 3,580,000 | Pledge | 2,800,000 | ||
| ChenXiaobao | DomesticNatureperson | 0.60% | 3,056,484 | 27,000 | 0 | 3,056,484 | ||||
| ChenZhaoyao | DomesticNatureperson | 0.59% | 2,990,300 | 2,990,300 | 0 | 2,990,300 | ||||
| ChinaConstructionBankCo.,Ltd－Xinaonewenergyindustryequitysecuritiesinvestmentfund | DomesticNon-State-ownedLegalperson | 0.50% | 2,513,684 | 2,314,900 | 0 | 2,513,684 | ||||
| LiZengmao | DomesticNatureperson | 0.48% | 2,428,297 | 203,900 | 0 | 2,428,297 | ||||
| PengXun | DomesticNatureperson | 0.33% | 1,652,800 | 293,100 | 0 | 1,652,800 | ||||
| Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)（SeeNotes3） | None | |||||||||
| Explanationonshareholdersparticipatinginthemargintradingbusiness | Amongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany. | |||||||||
| Aboveshareholdersentrustingorentrustedwithvotingrights,orwaivingvotingrights | None | |||||||||
| Top10shareholdersincludingthespecialaccountforrepurchase(ifany)(seenote10) | None | |||||||||
| Shareholdingoftop10shareholdersofunrestrictedshares | ||||||||||
| Nameoftheshareholder | Quantityofunrestrictedsharesheldattheendofthereportingperiod | Sharetype | ||||||||
| Sharetype | Quantity | |||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | 234,069,436 | CommonsharesinRMB | 234,069,436 | |||||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | 16,129,032 | CommonsharesinRMB | 16,129,032 | |||||||
| SunHuiming | 6,399,653 | Foreignsharesindomesticmarket | 6,399,653 | |||||||
| ZhangzhouXiaotianVentureInvestmentCo.,Ltd. | 4,188,800 | CommonsharesinRMB | 4,188,800 | |||||||
| SuWeipeng | 3,580,000 | CommonsharesinRMB | 3,580,000 | |||||||
| ChenXiaobao | 3,056,484 | CommonsharesinRMB | 3,056,484 | |||||||
| ChenZhaoyao | 2,990,300 | CommonsharesinRMB | 2,990,300 | |||||||
| ChinaConstructionBankCo.,Ltd－Xinaonewenergyindustryequitysecuritiesinvestmentfund | 2,513,684 | CommonsharesinRMB | 2,513,684 | |||||||
| LiZengmao | 2,428,297 | CommonsharesinRMB | 2,428,297 | |||||||
| PengXun | 1,652,800 | CommonsharesinRMB | 1,652,800 | |||||||
| Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders | Amongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany. | |||||||||
| Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4) | None | |||||||||
Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod.
□Yes√NoThetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.
IV.Changesinshareholdingsofdirectors,supervisorsandexecutiveofficers
□Applicable√NotapplicableTherewasnochangeinshareholdingofdirectors,supervisorsandseniormanagementstaffs,forthespecificinformationpleaserefertothe2022AnnualReportV.ChangeofthecontrollingshareholderortheactualcontrollerChangeofthecontrollingshareholderinthereportingperiod
□Applicable√NotApplicableTherewasnoanychangeofthecontrollingshareholderoftheCompanyinthereportingperiod.Changeoftheactualcontrollerinthereportingperiod
□Applicable√NotapplicableTherewasnoanychangeoftheactualcontrolleroftheCompanyinthereportingperiod.
VIII.SituationofthePreferredShares
□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod
IX.CorporateBond
□Applicable√Notapplicable
X.FinancialReportI.Auditreport
Hasthissemi-annualreportbeenaudited?
□Yes√NoThesemi-annualfinancialreporthasnotbeenaudited.II.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY
1.ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.
June30,2023
InRMB
| Items | June30,2023 | January1,2023 |
| Currentasset： | ||
| Monetaryfund | 616,242,142.99 | 991,789,968.19 |
| Settlementprovision | ||
| Outgoingcallloan | ||
| Transactionalfinancialassets | 613,554,063.16 | 319,605,448.44 |
| Derivativefinancialassets | ||
| Notereceivable | 56,718,590.38 | 74,619,100.26 |
| Accountreceivable | 854,907,728.96 | 636,583,469.93 |
| Financingofreceivables | 22,863,088.36 | 54,413,796.91 |
| Prepayments | 29,658,881.12 | 18,391,444.67 |
| Insurancereceivable | ||
| Reinsurancereceivable | ||
| ProvisionsofReinsurancecontractsreceivable | ||
| Otheraccountreceivable | 3,393,141.86 | 10,585,975.38 |
| Including：Interestreceivable | ||
| Dividendreceivable | ||
| Repurchasingoffinancialassets | ||
| Inventories | 663,102,543.53 | 558,447,648.77 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | 49,663,425.99 | 69,535,531.24 |
| Totalofcurrentassets | 2,910,103,606.35 | 2,733,972,383.79 |
| Non-currentassets： | ||
| Loansandpaymentonother’sbehalfdisbursed | ||
| Creditor'srightinvestment | ||
| Othercreditor'srightinvestment | ||
| Long-termreceivable |
| Longtermshareequityinvestment | 132,425,526.41 | 134,481,835.74 |
| Otherequityinstrumentsinvestment | 167,678,283.27 | 167,678,283.27 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 121,971,877.49 | 126,315,834.76 |
| Fixedassets | 2,133,290,574.66 | 2,240,221,656.36 |
| Constructioninprogress | 36,543,522.56 | 38,061,619.60 |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | 16,680,916.70 | 15,365,393.88 |
| Intangibleassets | 41,720,496.23 | 44,192,571.95 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 3,459,965.93 | 4,470,957.79 |
| Deferredincometaxasset | 68,718,492.58 | 69,823,814.29 |
| Othernon-currentasset | 40,252,375.73 | 42,553,016.47 |
| Totalofnon-currentassets | 2,762,742,031.56 | 2,883,164,984.11 |
| Totalofassets | 5,672,845,637.91 | 5,617,137,367.90 |
| Currentliabilities | ||
| Short-termloans | 8,000,000.00 | 7,000,000.00 |
| LoanfromCentralBank | ||
| Borrowingfunds | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 15,284,993.54 | |
| Accountpayable | 437,489,166.07 | 327,049,873.70 |
| Advancereceipts | 1,164,665.15 | 1,393,344.99 |
| Contractliabilities | 4,975,276.30 | 4,274,109.40 |
| Sellingofrepurchasedfinancialassets | ||
| Deposittakingandinterbankdeposit | ||
| Entrustedtradingofsecurities | ||
| Entrustedsellingofsecurities | ||
| Employees’wagepayable | 57,267,795.28 | 61,166,444.90 |
| Taxpayable | 6,033,241.05 | 8,897,312.51 |
| Otheraccountpayable | 187,021,282.45 | 197,345,455.37 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsurancefeepayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | 107,490,031.64 | 104,183,438.22 |
| Othercurrentliability | 74,149,887.64 | 92,945,741.78 |
| Totalofcurrentliability | 898,876,339.12 | 804,255,720.87 |
| Non-currentliabilities： | ||
| Reservefundforinsurancecontracts | ||
| Long-termloan | 557,148,599.34 | 607,421,585.00 |
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | 10,357,763.45 | 8,628,672.71 |
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 104,754,078.27 | 117,814,796.10 |
| Deferredincometaxliability | 48,518,353.82 | 47,974,267.80 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 720,778,794.88 | 781,839,321.61 |
| Totalofliability | 1,619,655,134.00 | 1,586,095,042.48 |
| Owners’equity | ||
| Sharecapital | 506,521,849.00 | 506,521,849.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,961,599,824.63 | 1,961,599,824.63 |
| Less：Sharesinstock | ||
| Othercomprehensiveincome | 109,830,200.11 | 109,596,609.31 |
| Specialreserve | ||
| Surplusreserves | 100,909,661.32 | 100,909,661.32 |
| Commonriskprovision | ||
| Retainedprofit | 176,552,462.98 | 170,636,610.95 |
| Totalofowner’sequitybelongtotheparentcompany | 2,855,413,998.04 | 2,849,264,555.21 |
| Minorityshareholders’equity | 1,197,776,505.87 | 1,181,777,770.21 |
| Totalofowners’equity | 4,053,190,503.91 | 4,031,042,325.42 |
| Totalofliabilitiesandowners’equity | 5,672,845,637.91 | 5,617,137,367.90 |
LegalRepresentative:YinKefeiPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：HuangMin
2.ParentCompanyBalanceSheet
InRMB
| Items | June30,2023 | January1,2023 |
| Currentasset： | ||
| Monetaryfund | 128,173,826.37 | 426,042,455.28 |
| Transactionalfinancialassets | 593,512,060.11 | 319,605,448.44 |
| Derivativefinancialassets | ||
| Notereceivable | ||
| Accountreceivable | 18,004,264.58 | 15,643,024.11 |
| Financingofreceivables | ||
| Prepayments | 1,406,419.78 | 0.00 |
| Otheraccountreceivable | 14,116,168.90 | 14,132,756.62 |
| Including：Interestreceivable | ||
| Dividendreceivable | ||
| Inventories | 18,993.95 | 26,237.85 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | ||
| Totalofcurrentassets | 755,231,733.69 | 775,449,922.30 |
| Non-currentassets： | ||
| Creditor'srightinvestment | ||
| Othercreditor'srightinvestment | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 2,090,375,024.50 | 2,092,431,333.83 |
| Otherequityinstrumentsinvestment | 151,618,842.39 | 151,618,842.39 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 97,823,054.11 | 101,190,712.85 |
| Fixedassets | 10,806,016.97 | 11,346,585.35 |
| Constructioninprogress |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 249,098.82 | 308,243.90 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | ||
| Deferredincometaxasset | ||
| Othernon-currentasset | 25,760,086.27 | 25,997,082.15 |
| Totalofnon-currentassets | 2,376,632,123.06 | 2,382,892,800.47 |
| Totalofassets | 3,131,863,856.75 | 3,158,342,722.77 |
| Currentliabilities | ||
| Short-termloans | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountpayable | 411,743.57 | 411,743.57 |
| Advancereceipts | 540,673.07 | 691,160.58 |
| Contractliabilities | ||
| Employees’wagepayable | 13,987,952.68 | 18,510,589.33 |
| Taxpayable | 3,684,645.18 | 7,121,466.14 |
| Otheraccountpayable | 111,540,100.53 | 113,736,371.24 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | ||
| Othercurrentliability | ||
| Totalofcurrentliability | 130,165,115.03 | 140,471,330.86 |
| Non-currentliabilities： | ||
| Long-termloan | ||
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 250,000.00 | 300,000.00 |
| Deferredincometaxliability | 44,905,468.47 | 44,363,868.30 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 45,155,468.47 | 44,663,868.30 |
| Totalofliability | 175,320,583.50 | 185,135,199.16 |
| Owners’equity | ||
| Sharecapital | 506,521,849.00 | 506,521,849.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,577,392,975.96 | 1,577,392,975.96 |
| Less：Sharesinstock | ||
| Othercomprehensiveincome | 98,910,619.45 | 98,855,668.75 |
| Specialreserve | ||
| Surplusreserves | 100,909,661.32 | 100,909,661.32 |
| Retainedprofit | 672,808,167.52 | 689,527,368.58 |
| Totalofowners’equity | 2,956,543,273.25 | 2,973,207,523.61 |
| Totalofliabilitiesandowners’equity | 3,131,863,856.75 | 3,158,342,722.77 |
3.ConsolidatedIncomestatement
InRMB
| Items | Thefirsthalfyearof2023 | Thefirsthalfyearof2022 |
| I.Incomefromthekeybusiness | 1,490,095,669.55 | 1,445,137,309.09 |
| Incl：Businessincome | 1,490,095,669.55 | 1,445,137,309.09 |
| Interestincome | ||
| Insurancefeeearned | ||
| Feeandcommissionreceived | ||
| II.Totalbusinesscost | 1,412,490,369.86 | 1,353,000,511.71 |
| Incl：Businesscost | 1,286,170,472.71 | 1,242,988,094.06 |
| Interestexpense | ||
| Feeandcommissionpaid | ||
| Insurancedischargepayment | ||
| Netclaimamountpaid | ||
| Netamountofwithdrawalofinsurancecontractreserve | ||
| Insurancepolicydividendpaid | ||
| Reinsuranceexpenses | ||
| Businesstaxandsurcharge | 4,397,329.78 | 4,171,362.18 |
| Salesexpense | 16,439,473.30 | 18,355,747.39 |
| Administrativeexpense | 65,299,409.82 | 61,448,188.86 |
| R&Dcosts | 36,004,188.62 | 34,870,992.66 |
| Financialexpenses | 4,179,495.63 | -8,833,873.44 |
| Including：Interestexpense | 13,965,081.41 | 15,882,534.27 |
| Interestincome | 5,318,571.16 | 773,863.34 |
| Add:Otherincome | 19,369,307.55 | 10,780,654.48 |
| Investmentgain（“-”forloss） | 7,743,354.69 | 11,043,172.52 |
| Incl:investmentgainsfromaffiliates | -2,111,260.03 | 1,658,532.04 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Gainsfromcurrencyexchange | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | ||
| Creditimpairmentloss | -8,669,369.85 | -2,985,253.53 |
| Impairmentlossofassets | -35,512,897.29 | -42,073,672.20 |
| Assetsdisposalincome | 321.08 | -11,114.72 |
| III.Operationalprofit（“-”forloss） | 60,536,015.87 | 68,890,583.93 |
| Add：Non-operationalincome | 401,387.79 | 1,768,115.05 |
| Less:Non-operatingexpense | 3,037,581.05 | 213,090.29 |
| IV.Totalprofit(“-”forloss) | 57,899,822.61 | 70,445,608.69 |
| Less：Incometaxexpenses | 5,713,017.38 | 340,897.81 |
| V.Netprofit | 52,186,805.23 | 70,104,710.88 |
| (I)Classificationbybusinesscontinuity | ||
| 1.Netcontinuingoperatingprofit | 52,186,805.23 | 70,104,710.88 |
| 2.Terminationofoperatingnetprofit | ||
| (II)Classificationbyownership | ||
| 1.Netprofitattributabletotheownersofparentcompany | 36,307,162.97 | 42,433,525.10 |
| 2.Minorityshareholders’equity | 15,879,642.26 | 27,671,185.78 |
| VI.Netafter-taxofothercomprehensiveincome | 352,684.20 | 75,756.02 |
| Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany. | 233,590.80 | 75,756.02 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | ||
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornet |
| assets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| （II）Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | 233,590.80 | 75,756.02 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | 178,640.10 | |
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | 54,950.70 | 75,756.02 |
| 7.Other | ||
| NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity | 119,093.40 | |
| VII.Totalcomprehensiveincome | 52,539,489.43 | 70,180,466.90 |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | 36,540,753.77 | 42,509,281.12 |
| Totalcomprehensiveincomeattributableminorityshareholders | 15,998,735.66 | 27,671,185.78 |
| VIII.Earningspershare | ||
| （I）Basicearningspershare | 0.0717 | 0.0838 |
| (II)Dilutedearningspershare | 0.0717 | 0.0838 |
Thecurrentbusinesscombinationundercommoncontrol,thenetprofitsofthecombinedpartybeforeachievednetprofitofRMB0.00,lastperiodthecombinedpartyrealizedRMB0.00.LegalRepresentative:YinKefeiPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：HuangMin
4.IncomestatementoftheParentCompany
InRMB
| Items | Thefirsthalfyearof2023 | Thefirsthalfyearof2022 |
| I.Incomefromthekeybusiness | 39,239,619.43 | 21,156,669.75 |
| Incl：Businesscost | 4,156,707.01 | 5,203,409.57 |
| Businesstaxandsurcharge | 1,518,980.53 | 1,379,026.92 |
| Salesexpense | 103,182.40 | 61,120.10 |
| Administrativeexpense | 24,244,619.96 | 20,247,344.52 |
| R&Dexpense | ||
| Financialexpenses | -1,137,285.05 | -246,370.02 |
| Including：Interestexpenses | ||
| Interestincome | 1,206,551.01 | 227,023.28 |
| Add：Otherincome | 103,012.52 | 181,448.97 |
| Investmentgain（“-”forloss） | 7,701,351.64 | 11,334,212.84 |
| Including:investmentgainsfromaffiliates | -2,111,260.03 | 1,658,532.04 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | ||
| Creditimpairmentloss | -38,616.99 | -106,152.94 |
| Impairmentlossofassets |
| Assetsdisposalincome | ||
| II.Operationalprofit（“-”forloss） | 18,119,161.75 | 5,921,647.53 |
| Add：Non-operationalincome | ||
| Less：Non-operationalexpenses | 263.13 | 100,000.00 |
| III.Totalprofit(“-”forloss) | 18,118,898.62 | 5,821,647.53 |
| Less：Incometaxexpenses | 4,446,788.74 | 262,406.66 |
| IV.Netprofit | 13,672,109.88 | 5,559,240.87 |
| 1.Netcontinuingoperatingprofit | 13,672,109.88 | 5,559,240.87 |
| 2.Terminationofoperatingnetprofit | ||
| V.Netafter-taxofothercomprehensiveincome | 54,950.70 | 75,756.02 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | ||
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | 54,950.70 | 75,756.02 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | 54,950.70 | 75,756.02 |
| 7.Other | ||
| VI.Totalcomprehensiveincome | 13,727,060.58 | 5,634,996.89 |
| VII.Earningspershare | ||
| （I）Basicearningspershare | ||
| (II)Dilutedearningspershare |
5.ConsolidatedCashflowstatement
InRMB
| Items | Thefirsthalfyearof2023 | Thefirsthalfyearof2022 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 1,289,316,287.70 | 1,337,065,239.48 |
| Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany | ||
| Netincreaseofloansfromcentralbank | ||
| Netincreaseofinter-bankloansfromotherfinancialbodies | ||
| Cashreceivedagainstoriginalinsurancecontract | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseofclientdepositandinvestment | ||
| Cashreceivedfrominterest,commissionchargeandcommission | ||
| Netincreaseofinter-bankfundreceived | ||
| Netincreaseofrepurchasingbusiness | ||
| Netcashreceivedbyagentinsecuritiestrading | ||
| Taxreturned | 2,508,619.13 | 2,595,000.19 |
| Othercashreceivedfrombusinessoperation | 77,994,829.70 | 287,019,693.63 |
| Sub-totalofcashinflow | 1,369,819,736.53 | 1,626,679,933.30 |
| Cashpaidforpurchasingofmerchandiseandservices | 1,119,566,064.13 | 1,225,526,384.08 |
| Netincreaseofclienttradeandadvance | 0.00 | 0.00 |
| Netincreaseofsavingsincentralbankandbrothercompany | 0.00 | 0.00 |
| Cashpaidfororiginalcontractclaim | 0.00 | 0.00 |
| Netincreaseinfinancialassetsheldfortradingpurposes | 0.00 | 0.00 |
| NetincreaseforOutgoingcallloan | 0.00 | 0.00 |
| Cashpaidforinterest,processingfeeandcommission | 0.00 | 0.00 |
| Cashpaidtostaffsorpaidforstaffs | 132,029,182.07 | 132,733,244.30 |
| Taxespaid | 25,728,838.24 | 139,777,733.09 |
| Othercashpaidforbusinessactivities | 78,092,678.49 | 49,204,337.24 |
| Sub-totalofcashoutflowfrombusinessactivities | 1,355,416,762.93 | 1,547,241,698.71 |
| Netcashgeneratedfrom/usedinoperatingactivities | 14,402,973.60 | 79,438,234.59 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | ||
| Cashreceivedasinvestmentgains | 1,456,000.00 | 2,636,054.80 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 7,050.00 | 2,776.70 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | 0.00 | 0.00 |
| Otherinvestment-relatedcashreceived | 195,000,000.00 | 635,000,000.00 |
| Sub-totalofcashinflowduetoinvestmentactivities | 196,463,050.00 | 637,638,831.50 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 13,286,475.07 | 31,252,419.31 |
| Cashpaidasinvestment | 0.00 | 0.00 |
| Netincreaseofloanagainstpledge | 0.00 | 0.00 |
| Netcashreceivedfromsubsidiariesandotheroperationalunits | 0.00 | 0.00 |
| Othercashpaidforinvestmentactivities | 631,537,000.00 | 650,000,001.00 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 644,823,475.07 | 681,252,420.31 |
| Netcashflowgeneratedbyinvestment | -448,360,425.07 | -43,613,588.81 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Including:Cashreceivedasinvestmentfromminorshareholders | ||
| Cashreceivedasloans | 3,000,000.00 | 50,572,000.00 |
| Otherfinancing–relatedcashreceived | 0.00 | 0.00 |
| Sub-totalofcashinflowfromfinancingactivities | 3,000,000.00 | 50,572,000.00 |
| Cashtorepaydebts | 49,284,364.34 | 0.00 |
| Cashpaidasdividend,profit,orinterests | 44,088,760.65 | 40,857,882.81 |
| Including:Dividendandprofitpaidbysubsidiariestominorshareholders | 0.00 | 0.00 |
| Othercashpaidforfinancingactivities | 4,141,770.57 | 0.00 |
| Sub-totalofcashoutflowduetofinancingactivities | 97,514,895.56 | 40,857,882.81 |
| Netcashflowgeneratedbyfinancing | -94,514,895.56 | 9,714,117.19 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | -318,751.44 | 713,784.26 |
| V.Netincreaseofcashandcashequivalents | -528,791,098.47 | 46,252,547.23 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 874,474,834.46 | 302,408,433.72 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 345,683,735.99 | 348,660,980.95 |
6.CashFlowStatementoftheParentCompany
InRMB
| Items | Thefirsthalfyearof2023 | Thefirsthalfyearof2022 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 39,612,023.57 | 30,439,993.40 |
| Taxreturned | 1,636,664.57 | 200,005.60 |
| Othercashreceivedfrombusinessoperation | 1,679,622.51 | 8,775,816.77 |
| Sub-totalofcashinflow | 42,928,310.65 | 39,415,815.77 |
| Cashpaidforpurchasingofmerchandiseandservices | 6,111,142.09 | 5,066,002.25 |
| Cashpaidtostaffsorpaidforstaffs | 22,248,006.25 | 16,859,518.32 |
| Taxespaid | 12,755,344.10 | 3,475,718.60 |
| Othercashpaidforbusinessactivities | 3,654,514.20 | 9,214,911.23 |
| Sub-totalofcashoutflowfrombusinessactivities | 44,769,006.64 | 34,616,150.40 |
| Netcashgeneratedfrom/usedinoperatingactivities | -1,840,695.99 | 4,799,665.37 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 0.00 | 0.00 |
| Cashreceivedasinvestmentgains | 1,456,000.00 | 2,636,054.80 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 0.00 | 0.00 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | 0.00 | 0.00 |
| Otherinvestment-relatedcashreceived | 135,000,000.00 | 635,000,000.00 |
| Sub-totalofcashinflowduetoinvestmentactivities | 136,456,000.00 | 637,636,054.80 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 512,293.90 | 238,180.00 |
| Cashpaidasinvestment | 0.00 | 0.00 |
| Netcashreceivedfromsubsidiariesandotheroperationalunits | 0.00 | |
| Othercashpaidforinvestmentactivities | 401,537,000.00 | 650,000,001.00 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 402,049,293.90 | 650,238,181.00 |
| Netcashflowgeneratedbyinvestment | -265,593,293.90 | -12,602,126.20 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Cashreceivedasloans | ||
| Otherfinancing–relatedashreceived | ||
| Sub-totalofcashinflowfromfinancingactivities | ||
| Cashtorepaydebts | ||
| Cashpaidasdividend,profit,orinterests | 30,406,699.21 | 25,326,092.45 |
| Othercashpaidforfinancingactivities | 0.00 | 0.00 |
| Sub-totalofcashoutflowduetofinancingactivities | 30,406,699.21 | 25,326,092.45 |
| Netcashflowgeneratedbyfinancing | -30,406,699.21 | -25,326,092.45 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | -27,939.81 | 0.00 |
| V.Netincreaseofcashandcashequivalents | -297,868,628.91 | -33,128,553.28 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 310,322,528.19 | 130,236,340.98 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 12,453,899.28 | 97,107,787.70 |
7.ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod
InRMB
| Items | Thefirsthalfyearof2023 | ||||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Sustainable | Other | |||||||||||||
| debt | |||||||||||||||
| I.Balanceattheendoflastyear | 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:Changeofaccountingpolicy | |||||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 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.Changedinthecurrentyear | 233,590.80 | 5,915,852.03 | 6,149,442.83 | 15,998,735.66 | 22,148,178.49 | ||||||||||
| （1）Totalcomprehensiveincome | 233,590.80 | 36,307,162.97 | 36,540,753.77 | 15,998,735.66 | 52,539,489.43 | ||||||||||
| （II）Investmentordecreasingofcapitalbyowners | |||||||||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | |||||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （III）Profitallotment | -30,391,310.94 | -30,391,310.94 | -30,391,310.94 | ||||||||||||
| 1.Providingofsurplusreserves |
| 2.Providingofcommonriskprovisions | |||||||||||||
| 3．Allotmenttotheowners(orshareholders) | -30,391,310.94 | -30,391,310.94 | -30,391,310.94 | ||||||||||
| 4．Other | |||||||||||||
| (IV)Internaltransferringofowners’equity | |||||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | |||||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | |||||||||||||
| 3．Makinguplossesbysurplusreserves. | |||||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | |||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | |||||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendofthisterm | 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 |
Amountinlastyear
InRMB
| Items | Thefirsthalfyearof2022 | ||
| Owner’sequityAttributabletotheParentCompany | Minorshar | Totalofown | |
Shar
e
| Share | OtherEquityinstrument | Capital | Less: | Other | Speciali | Surplus | Comm | Retained | Other | Subtotal |
| Capital | Preferredstock | Sustainabledebt | Other | reserves | Sharesinstock | ComprehensiveIncome | zedreserve | reserves | onriskprovision | profit | eholders’equity | ers’equity | |||
| I.Balanceattheendoflastyear | 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:Changeofaccountingpolicy | 0.00 | ||||||||||||||
| Correctingofpreviouserrors | 0.00 | ||||||||||||||
| Mergerofentitiesundercommoncontrol | 0.00 | ||||||||||||||
| Other | 0.00 | ||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 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.Changedinthecurrentyear | 75,756.02 | 17,107,432.65 | 17,183,188.67 | 27,671,185.78 | 44,854,374.45 | ||||||||||
| （1）Totalcomprehensiveincome | 75,756.02 | 42,433,525.10 | 42,509,281.12 | 27,671,185.78 | 70,180,466.90 | ||||||||||
| （II）Investmentordecreasingofcapitalbyowners | 0.00 | ||||||||||||||
| 1．OrdinarySharesinvestedbyshareholders | 0.00 | ||||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | 0.00 | ||||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | 0.00 | ||||||||||||||
| 4．Other | 0.00 | ||||||||||||||
| （III）Profitallotment | -25,326,092.45 | -25,326,092.45 | -25,326,092.45 |
| 1.Providingofsurplusreserves | |||||||||||||
| 2.Providingofcommonriskprovisions | |||||||||||||
| 3．Allotmenttotheowners(orshareholders) | -25,326,092.45 | -25,326,092.45 | -25,326,092.45 | ||||||||||
| 4．Other | 0.00 | ||||||||||||
| (IV)Internaltransferringofowners’equity | 0.00 | ||||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | 0.00 | ||||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | 0.00 | ||||||||||||
| 3．Makinguplossesbysurplusreserves. | 0.00 | ||||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | 0.00 | ||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | 0.00 | ||||||||||||
| 6．Other | 0.00 | ||||||||||||
| (V).Specialreserves | 0.00 | ||||||||||||
| 1.Providedthisyear | 0.00 | ||||||||||||
| 2．Usedthisterm | 0.00 | ||||||||||||
| （VI）Other | 0.00 | ||||||||||||
| IV.Balanceattheendofthisterm | 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.Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiod
InRMB
| Items | Thefirsthalfyearof2023 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 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:Changeofaccountingpolicy | ||||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 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.Changedinthecurrentyear | 54,950.70 | -16,719,201.06 | -16,664,250.36 | |||||||||
| （I）Totalcomprehensiveincome | 54,950.70 | 13,672,109.88 | 13,727,060.58 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | ||||||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profitallotment | -30,391,310. | -30,391,310. | ||||||||||
| 94 | 94 | |||||||||
| 1.Providingofsurplusreserves | ||||||||||
| 2．Allotmenttotheowners(orshareholders) | -30,391,310.94 | -30,391,310.94 | ||||||||
| 3．Other | ||||||||||
| (IV)Internaltransferringofowners’equity | ||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | ||||||||||
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | ||||||||||
| IV.Balanceattheendofthisterm | 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 |
Amountinlastyear
InRMB
| Items | Thefirsthalfyearof2022 | |||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainable | Other | ||||||||||
| debt | ||||||||||||
| I.Balanceattheendoflastyear | 506,521,849.00 | 1,577,392,975.96 | 108,762,538.39 | 98,245,845.47 | 690,879,118.40 | 2,981,802,327.22 | ||||||
| Add:Changeofaccountingpolicy | ||||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 506,521,849.00 | 1,577,392,975.96 | 108,762,538.39 | 98,245,845.47 | 690,879,118.40 | 2,981,802,327.22 | ||||||
| III.Changedinthecurrentyear | 75,756.02 | -19,766,851.58 | -19,691,095.56 | |||||||||
| （I）Totalcomprehensiveincome | 75,756.02 | 5,559,240.87 | 5,634,996.89 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | ||||||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profitallotment | -25,326,092.45 | -25,326,092.45 | ||||||||||
| 1.Providingofsurplusreserves | ||||||||||||
| 2．Allotmenttotheowners(orshareholders) | -25,326,092.45 | -25,326,092.45 | ||||||||||
| 3．Other | ||||||||||||
| (IV)Internaltransferring |
| ofowners’equity | ||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | ||||||||||
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | ||||||||||
| IV.Balanceattheendofthisterm | 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.BasicInformationoftheCompany
ShenzhenTextile(Holdings)Co.,Ltd(hereinafterreferredtoas"theCompany")isacompanylimitedbysharesregisteredinGuangdongProvince,formerlyknownasShenzhenTextileIndustryCompanyandestablishedin1984.TheCompanywaslistedontheShenzhenStockExchangeinAugust1994.TheCompanypubliclyissuedRMBordinaryshares(Ashares)anddomesticlistedforeigncapitalshares(Bshares)tothedomesticandforeignpublicrespectivelyandlistedthemfortrading.
HeadquarteredinShenzhen,GuangdongProvince,themainbusinessoftheCompanyanditssubsidiaries(hereinafterreferredtoas"theGroup")includestheresearchanddevelopment,productionandmarketingofpolarizersforliquidcrystaldisplay,aswellaspropertymanagementbusinessmainlylocatedintheprosperouscommercialareaofShenzhenandtextileandgarmentbusiness.
DetailsofthescopeoftheconsolidatedfinancialstatementfortheyeararesetoutintheNote(X)9,"Interestsinotherentities".ChangesinthescopeoftheconsolidatedfinancialstatementfortheyeararesetoutinNote(X)8,"ChangesintheScopeofConsolidation".
IV.Basisforthepreparationoffinancialstatements
（1）BasisforthepreparationThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinanceanditsapplicationguidelines,interpretationsandotherrelevantprovisions(collectivelyreferredtoasthe"AccountingStandardsforBusinessEnterprises").Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRulesNo.15fortheInformationDisclosureandCompilationofCompaniesOfferingSecuritiesPublicIssuance-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.
(2)Continuousoperation
TheGroupevaluateditsabilitytocontinueasagoingconcernforthe12monthsfrom31December2022andfoundnomattersorcircumstancesthatraisedsignificantdoubtsaboutitsabilitytocontinueasagoingconcern.Accordingly,thepresentfinancialreporthasbeenpreparedonthebasisofgoingconcernassumptions.
(3)Bookkeepingbasisandpricingprinciple
TheGroup'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments-whicharemeasuredatfairvalue,thefinancialreportusesthehistoricalcostasthemeasurementbasis.Iftheassetisimpaired,thecorrespondingimpairmentprovisionwillbemadeinaccordancewiththerelevantregulations.
Underhistoricalcostmeasurement,anassetismeasuredatthefairvalueoftheamountofcashorcashequivalentspaidortheconsiderationpaidatthetimeofacquisition.Liabilitiesaremeasuredbytheamountofmoneyorassetsactuallyreceivedasaresultofthepresentobligationisassumed,orthecontractualamountofthepresentobligationisincurred,ortheamountofcashorcashequivalentsexpectedtobepaidintheordinarycourseoflifetorepaytheliability.
Fairvalueisthepricethatmarketparticipantsshallhavetoreceiveforthesaleofanassetorshalltopayforatransferofaliabilityinanorderlytransactionthatoccursonthemeasurementdate.Whetherthefairvalueisobservableorestimatedusingvaluationtechniques,thefairvaluemeasuredanddisclosedinthisfinancialreportisdeterminedonthatbasis.
Forfinancialassetsthatusethetransactionpriceasthefairvalueatthetimeofinitialrecognition,andavaluationtechniqueinvolvingunobservableinputsisusedinsubsequentmeasuresoffairvalue,thevaluationtechniqueiscorrectedduringthevaluationprocesssothattheinitialrecognitionresultdeterminedbythevaluationtechniqueisequaltothetransactionprice.
Fairvaluemeasurementisdividedintothreelevelsastotheobservabilityoffairvalueinputs,andtheimportanceofsuchinputstofairvaluemeasurementasavalueinputs,andtheimportanceofsuchinputstofairvaluemeasurementasawhole:
Thefirstlevelofinputistheunadjustedquotationofthesameassetorliabilityinanactivemarketthatcanbeobtainedatthemeasurementdate.
Thesecond-levelinputvalueistheinputvaluethatisdirectlyorindirectlyobservablefortheunderlyingassetorliabilityinadditiontothefirst-levelinput.
Thethirdlevelinputvalueistheunobservableinputvalueoftheunderlyingassetorliability.V.Importantaccountingpoliciesandaccountingestimates
1.StatementofcompliancewithaccountingstandardsforbusinessenterprisesThefinancialreportpreparedbytheCompanycomplieswiththerequirementsoftheAccountingStandardsforBusinessEnterprisesandtrulyandcompletelyreflectstheconsolidatedandparentfinancialpositionoftheCompanyasofJune30,2023andtheconsolidatedandparentoperatingresults,theconsolidatedandparentshareholders'equitychangesandtheconsolidatedandparentcashflowsforthefirsthalf2023.
2.AccountingperiodTheGroup'sfiscalyearistheGregoriancalendaryear,i.e.fromJanuary1toDecember31ofeachyear.
3.BusinesscycleThebusinesscycleistheperiodfromthetimeanenterprisepurchasesanassetforprocessingtotherealizationofcashorcashequivalents.TheCompany'sbusinesscycleis12months.
4.Thebasecurrencyofaccount
RMBisthecurrencyinthemaineconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate,andtheCompanyanditsdomesticsubsidiariesuseRMBasthebaseaccountingcurrency.TheoverseassubsidiariesoftheCompanydetermineRMBastheirbaseaccountingcurrencyaccordingtothecurrencyofthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinthepreparationofthisfinancialreportisRMB.
5.Accountingtreatmentofbusinesscombinationsunderthecommoncontrolandundernon-commoncontrol
Businesscombinationsaredividedintobusinesscombinationsundercommoncontrolandbusinesscombinationsundernon-commoncontrol.
（
）Businesscombinationsundercommoncontrol
Theenterprisesparticipatinginthemergerareultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthemerger,andthecontrolisnottemporary,thereforeitisabusinesscombinationunderthecommoncontrol.
Assetsandliabilitiesacquiredinabusinesscombinationaremeasuredattheircarryingvalueontheconsolidatedpartyatthedateofconsolidation.Thedifferencebetweenthecarryingamountofnetassetsacquiredbythemergingpartyandthecarryingamountofthemergerconsiderationpaidisadjustedfortheequitypremiuminthecapitalreserveorforretainedearningsiftheequitypremiumisinsufficienttobeoffset.
Directcarryingvalueontheconsolidatedpartyatthedateofconsolidation.Thedifferencebetweenthecarryingamountofnetassetsacquiredbythemergingpartyandthecarryingamountofthemergerconsiderationpaidisadjustedfortheequitypremiuminthecapitalreserveorforretainedearningsiftheequitypremiumisinsufficienttobeoffset.
Directexpensesincurredinconnectionwiththebusinesscombinationarerecognizedinprofitorlossfortheperiodwhenincurred.
（2）Businesscombinationsandgoodwillundernon-commoncontrol
Theenterprisesparticipatinginamergerarenotultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthemerger,thereforeitisabusinesscombinationundernon-commoncontrol.
Consolidationcostisthefairvalueofassetspaid,liabilitiesincurredorassumedandequityinstrumentsissuedtogaincontroloftheacquiredpartybythepurchaser.Intermediaryfeessuchasauditing,legalservices,valuationconsultingandotherrelatedmanagementexpensesincurredbythepurchaserforthebusinesscombinationarerecognizedintheprofitorlossoftheperiodwhenincurred.Theidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireethatareeligibleforrecognitionacquiredbythepurchaserinthemergeraremeasuredatfairvalueatthedateofpurchase.Thecostofthemergerisgreaterthanthedifferenceinthefairvalueshareoftheacquiree'sidentifiablenetassetsacquiredinthemerger,whichisrecognizedasgoodwillasanassetandinitiallymeasuredatcost.Ifthecostofthemergerislessthanthefairvalueshareoftheacquiree'sidentifiablenetassetsacquiredinthemerger,thefairvalueoftheacquiredacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandthemeasurementofthecostofthemergerarefirstreviewed,andiftheconsolidatedcostafterreviewisstilllessthanthefairvalueshareoftheacquiree'sidentifiablenetassetsshareacquiredinthemerger,whichshallbeincludedinprofitorlossfortheperiodoccurred.Goodwillresultingfrombusinesscombinationsispresentedseparatelyintheconsolidatedfinancialstatementandmeasuredatcostlessaccumulatedimpairmentprovisions.
6.Methodologyforthepreparationofconsolidatedfinancialstatement
Theconsolidatedscopeoftheconsolidatedfinancialstatementisdeterminedonacontrolbasis.Controlmeansthattheinvestorhaspowerovertheinvestee,enjoysvariablereturnsbyparticipatingintheinvestee'srelatedactivities,andhastheabilitytouseitspowerovertheinvesteetoinfluencetheamountofitsreturn.TheGroupwillreassessoncechangesintherelevantfactsandcircumstancesresultinachangeintherelevantelementscoveredbytheabovedefinitionofcontrol.
ThemergerofsubsidiariesbeginswhentheGroupacquirescontrolofthesubsidiaryandterminateswhentheGrouplosescontrolofthesubsidiary.
ForsubsidiariesdisposedofbytheGroup,theresultsofoperationsandcashflowspriortothedateofdisposal(thedateoflossofcontrol)havebeendulyincludedintheconsolidatedstatementofincomeandtheconsolidatedstatementofcashflows.
Forsubsidiariesacquiredthroughabusinesscombinationundernon-commoncontrol,theresultsofoperationsandcashflowsfromthedateofpurchase(thedateofacquisitionofcontrol)havebeenappropriatelyincludedintheconsolidatedstatementofincomeandtheconsolidatedstatementofcashflows.
Forsubsidiariesacquiredthroughabusinesscombinationundercommoncontrol,regardlessofwhenthebusinesscombinationtakesplaceinanypointofthereportingperiod,thesubsidiaryshallbedeemedtobeincludedinthescopeoftheGroup'sconsolidationonthedateonwhichthesubsidiaryisunderthecontroloftheultimatecontrollingparty,theresultsofoperationsandcashflowsfromthebeginningoftheearliestperiodofthereportingperiodaredulyincludedintheconsolidatedincomestatementandtheconsolidatedstatementofcashflows.
TheprincipalaccountingpoliciesandtheaccountingperiodsadoptedbythesubsidiariesaredeterminedinaccordancewiththeaccountingpoliciesandaccountingperiodsuniformlyprescribedbytheCompany.
TheimpactoftheCompany'sinternaltransactionswithitssubsidiariesandbetweensubsidiariesontheconsolidatedfinancialstatementisoffsetatthetimeofconsolidation.
Thesharesofthesubsidiary'sownershipinterestthatarenotpartoftheparentcompanyareshownasminorityinterestsundertheitem"minorityinterests"undertheitemonshareholders'equityintheconsolidatedbalancesheet.Thesharesofthesubsidiary'snetprofitorlossfortheperiodthatbelongstominorityinterestsisshownundertheitem"minorityprofitandloss"underthenetprofititemintheconsolidatedstatementofincome.Theminorityshareholders’shareofthesubsidiary'slossesexceedstheminorityshareholders’shareofownershipinterestenjoyedinthebeginningoftheperiod,anditsbalanceisstilloffsetbytheminorityshareholders’equity.Fortransactionsthatpurchaseminoritystakesinasubsidiaryordisposeofpartoftheequityinvestmentwithoutlosingcontrolofthesubsidiary,it’saccountedasequitytransactions,andthecarryingamountoftheowner'sinterestandminorityinterestattributabletotheparentcompanyisadjustedtoreflecttheirchangeintherelevantinterestinthesubsidiary.Thedifferencebetweentheadjustmentofminorityinterestsandthefairvalueoftheconsiderationpaid/receivedisadjustedtothecapitalreserve,andifthecapitalreserveisinsufficienttooffsetit,thenit’sadjustedtotheretainedearnings.
7.Classificationofjointventurearrangementclassificationsandaccountingtreatmentmethodsforjointoperations
Jointarrangementsaredividedintocommonly-operatedventuresandjointly-operatedventures,whicharedeterminedinaccordancewiththerightsandobligationsofthejointventurepartiesinthejointventurearrangementbytakingintoaccountfactorssuchasthestructure,legalformandcontractualtermsofthearrangement.Commonly-operatedreferstoajointarrangementinwhichthejointventurepartiesenjoytheassetsrelatedtothearrangementandbeartheliabilitiesrelatedtothearrangement.Thejointly-operatedisajointarrangementinwhichthejointventurepartyhasrightsonlytothenetassetsofthejointarrangement.
TheGroup'sinvestmentsinjointventuresareaccountedbyusingtheequitymethod,pleaseseeNote(X)5,22"Long-termequityinvestments".(3)subsequentmeasurementandprofitandlossrecognitionmethod2)Long-termequityinvestmentcalculatedbytheequitymethod".
8.Standardsfordeterminingcashandcashequivalents
Cashreferstocashonhandanddepositsthatcanbeusedtopayatanytime.CashequivalentsrefertoinvestmentsheldbytheGroupforashortperiod(generallywithinthreemonthsfromthedateofpurchase),highlyliquid,easilyconvertibleintoaknownamountofcash,andwithlittleriskofchangeinvalue.
9.Foreigncurrencytransactionsandtranslationofforeigncurrencystatements
（1）ForeignCurrencyBusiness
Foreigncurrencytransactionsareinitiallyrecognizedatanexchangeratesimilartothespotexchangerateonthedateofthetransaction,andtheexchangeratesimilartothespotrateonthedateofthetransactionisdeterminedinasystematicandreasonablemanner.
Atthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedintoRMBusingthespotexchangerateonthatdate,andtheexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthatdateandthespotexchangerateatthetimeofinitialrecognitionorthedayprecedingthebalance
sheetdate,except:(1)theexchangedifferenceofforeigncurrencyspecialborrowingseligibleforcapitalizationiscapitalizedduringthecapitalizationperiodandincludedinthecostoftheunderlyingasset;(2)Theexchangedifferenceofhedginginstrumentsforhedginginordertoavoidforeignexchangeriskistreatedaccordingtothehedgeaccountingmethod;(3)Theexchangedifferenceresultsfromchangesinothercarryingbalancesotherthanamortizedcostformonetaryitemsclassifiedasmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincome,itshallberecognizedasprofitorlossfortheperiod.Wherethepreparationoftheconsolidatedfinancialstatementinvolvesoverseasoperations,ifthereareforeigncurrencymonetaryitemsthatsubstantiallyconstitutenetinvestmentinoverseasoperations,theexchangedifferencearisingfromexchangeratechangesisincludedinthe"foreigncurrencystatementtranslationdifference"itemincludedinothercomprehensiveincome;Whendisposingofoverseasoperations,itisincludedintheprofitorlossoftheperiodofdisposal.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostarestillmeasuredatthebasecurrencyamounttranslatedatthespotexchangerateonthedateofthetransaction.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearetranslatedusingthespotexchangerateonthefairvaluedeterminationdate,andthedifferencebetweentheconvertedbasecurrencyamountandtheoriginalaccountingcurrencyamountistreatedasachangeinfairvalue(includingexchangeratechanges)andrecognizedasprofitorlossfortheperiodorrecognizedasothercomprehensiveincome.（
）TranslationofForeignCurrencyFinancialStatementsForthepurposeofpreparingconsolidatedfinancialstatement,foreigncurrencyfinancialstatementsforoverseasoperationsareconvertedintoRMBstatementsinthefollowingmanner:allassetsandliabilitiesinthebalancesheetareconvertedatthespotexchangerateatthebalancesheetdate;Shareholders'equityitemsareconvertedatthespotexchangerateatthetimeofincurrence;Allitemsintheincomestatementanditemsreflectingtheamountofprofitdistributionareconvertedatanexchangeratesimilartothespotexchangerateonthedateofthetransaction;Thedifferencebetweentheconvertedassetitemsandthetotalofliabilityitemsandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.Foreigncurrencycashflowsandcashflowsofoverseassubsidiariesaretranslatedusingexchangeratessimilartothespotexchangerateontheoccurrencedateofcashflow,andtheimpactamountofexchangeratechangesoncashandcashequivalentsisusedasareconciliationitemandisshownseparatelyinthestatementofcashflowsas"Impactofexchangeratechangesoncashandcashequivalents".
Theprior-yearyear-endamountsandtheprior-yearactualarepresentedonthebasisoftheamountsconvertedfromtheprior-yearfinancialstatement.WheretheGrouplossescontrolofoverseasoperationsduetodisposingofalltheownershipinterestsinoverseasoperationsorthedisposalofpartoftheequityinvestmentorotherreasons,thedifferenceinthetranslationoftheforeigncurrencystatementsintheownershipinterestsattributabletotheparentcompanyrelatedtotheoverseasoperationsshownbelowtheitemsofshareholders'equityinthebalancesheetshallbetransferredtotheprofitorlossoftheperiodofdisposal.
Wheretheproportionofequityinterestsheldinoverseasoperationsdecreasesduetothedisposalofpartoftheequityinvestmentorotherreasonswithoutlostthecontroloftheoverseasoperations,thedifferenceinthetranslationofforeigncurrencystatementsrelatedtothedisposalpartoftheoverseasoperationsshallbeattributedtotheminorityshareholders'interestsandshallnotbetransferredtotheprofitorlossoftheperiod.Wheredisposingofpartoftheequityofanoverseasoperationinanassociateorajointventure,thedifference
inthetranslationofforeigncurrencystatementsrelatedtotheoverseasoperationshallbetransferredtotheprofitorlossoftheperiodofdisposalaccordingtotheproportionofthedisposaloftheoverseasoperation.
10.Financialinstruments
TheGrouprecognizesafinancialassetorfinancialliabilitywhenitbecomesapartytoafinancialinstrumentcontract.Inthecaseofthepurchaseorsaleoffinancialassetsintheusualmanner,itshallrecognizetheassetstobereceivedandtheliabilitiestobeincurredonthetransactiondate,orderecognizetheassetssoldonthetransactiondate.
Financialassetsandfinancialliabilitiesaremeasuredatfairvalueatinitialrecognition.Forfinancialassetsandfinancialliabilitiesmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod,therelatedtransactioncostsarerecognizeddirectlyinprofitorlossfortheperiod;Forothercategoriesoffinancialassetsandfinancialliabilities,therelatedtransactioncostsareincludedintheinitialrecognitionamount.WheretheGroupinitiallyrecognizesaccountsreceivablethatdonotcontainamaterialfinancingcomponentordonottakeintoaccountthefinancingcomponentinacontractnotolderthanoneyearinaccordancewithNo.14AccountingStandardforBusinessEnterprises-Revenue(the"RevenueStandard"),theinitialmeasurementismadeatthetransactionpriceasdefinedbytherevenuestandard.
Theeffectiveinterestratemethodreferstothemethodofcalculatingtheamortizedcostoffinancialassetsorfinancialliabilitiesandapportioninginterestincomeorinterestexpenseintoeachaccountingperiod.
Theeffectiveinterestrateistheinterestrateusedtodiscounttheestimatedfuturecashflowsofafinancialassetorfinancialliabilityovertheexpectedlifeofthefinancialassettothecarryingbalanceofthefinancialassetortheamortizedcostofthefinancialliability.Indeterminingtheeffectiveinterestrate,theexpectedcashflowisestimatedtakingintoaccountallcontractualtermsofthefinancialassetorfinancialliability(suchasearlyrepayment,rollover,calloptionorothersimilaroption,etc.),withouttakingintoaccounttheexpectedcreditloss.
Theamortizedcostofafinancialassetorfinancialliabilityistheamountinitiallyrecognizedlesstheprincipalrepaid,plusorminustheaccumulatedamortizationresultingfromtheamortizationofthedifferencebetweentheinitialrecognitionamountandtheamountduedateusingtheeffectiveinterestratemethod,andthendeducttheaccumulatedprovisionforlosses(forfinancialassetsonly).
（1）Classification,recognitionandmeasurementoffinancialassets
Afterinitialrecognition,theGroupconductssubsequentmeasurementsofdifferentclassesoffinancialassetsatamortizedcost,measuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,ormeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.
Thecontractualclausesofafinancialassetprovidethatthecashflowsgeneratedonagivendateareonlythepaymentofprincipalandinterestbasedontheoutstandingprincipalamount,andtheGroup'sbusinessmodelisaimedformanagingthefinancialassetistocollectcontractualcashflows,thentheGroupclassifiesthefinancialassetasafinancialassetmeasuredatamortizedcost.Suchfinancialassetsmainlyincludemonetaryfunds,notesreceivable,accountsreceivableandotherreceivables.
Thecontractualtermsofafinancialassetprovidethatthecashflowsgeneratedataparticulardateareonlythepaymentofprincipalandinterestbasedontheoutstandingprincipalamount,andtheGroup'sbusiness
modelformanagingthefinancialassetisaimedatboththereceiptofcontractualcashflowsandthesaleofthefinancialasset,thenthefinancialassetisclassifiedasafinancialassetmeasuredatfairvalueandthechangethereinisrecognizedinothercomprehensiveincome.Suchfinancialassetswithamaturityofmorethanoneyearfromthedateofacquisitionarelistedasotherdebtinvestments,andiftheymaturewithinoneyear(inclusive)fromthebalancesheetdate,theyareshownasnon-currentassetsmaturingwithinoneyear;Accountsreceivableandnotesreceivableclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincomeatthetimeofacquisitionareshowninreceivablesfinancing,andtheotheracquiredwithamaturityofoneyear(inclusive)areshowninothercurrentassets.
Atinitialrecognition,theGroupmayirrevocablydesignateinvestmentsinnon-tradableequityinstrumentsotherthancontingentconsiderationrecognizedinbusinesscombinationsthatareundernon-commoncontrolasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincomeonasinglefinancialassetbasis.Suchfinancialassetsarelistedasinvestmentsinotherequityinstruments.
Whereafinancialassetmeetsanyofthefollowingconditions,itindicatesthattheGroup'spurposeinholdingthefinancialassetistransactional:
Thepurposeofacquiringtheunderlyingfinancialassetisprimarilyforthepurposeoftherecentsale.
Theunderlyingfinancialassetswerepartofacentrallymanagedportfolioofidentifiablefinancialinstrumentsatthetimeofinitialrecognitionandtherewasobjectiveevidenceofanactualpatternofshort-termprofitsintherecent.
Theunderlyingfinancialassetisaderivativeinstrument,exceptforderivativesthatmeetthedefinitionofafinancialguaranteecontractandderivativesthataredesignatedaseffectivehedginginstruments.
Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodincludefinancialassetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodandfinancialassetsdesignatedasmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod:
Financialassetsthatdonotqualifyasfinancialassetsmeasuredatamortizedcostandfinancialassetsmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincomeareclassifiedasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.
Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theGroupmayirrevocablydesignatefinancialassetsasfinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.
Financialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodareshownintradingfinancialassets,andfinancialassetswithmaturityofmorethanoneyear(orhaveanindefinitematurity)fromthebalancesheetdateandexpectedtobeheldformorethanoneyearisshownasothernon-currentfinancialassets1）FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestratemethod,andthegainsorlossesarisingfromimpairmentorderecognitionareincludedinprofitorlossfortheperiod.TheGrouprecognizesinterestincomeonfinancialassetsmeasuredatamortizedcostinaccordancewiththeeffectiveinterestratemethod.Forfinancialassetspurchasedorderivedthathaveincurredcreditimpairment,
theGroupdeterminesinterestincomebasedontheamortizedcostofthefinancialassetandthecredit-adjustedeffectiveinterestratefromtheinitialrecognition.Inaddition,theGroupdeterminesinterestincomebasedonthecarryingbalanceoffinancialassetsmultipliedbytheeffectiveinterestrate.2）FinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinothercomprehensiveincomeImpairmentlossesorgainsandinterestincomecalculatedusingtheeffectiveinterestratemethodrelatedtofinancialassetsclassifiedasmeasuredatfairvalueandchangesinwhichareincludedinothercomprehensiveincomearerecognizedinprofitorlossfortheperiod,andexceptthat,changesinthefairvalueofsuchfinancialassetsarerecognizedinothercomprehensiveincome.Theamountofthefinancialassetrecognizedinprofitorlossforeachperiodisequaltotheamountthatisrecognizedinprofitorlossforeachperiodasifithadbeenmeasuredatamortizedcost.Whenthefinancialassetisderecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognizedinprofitorlossfortheperiod.Changesinfairvalueininvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandthechangeinwhicharerecognizedinothercomprehensiveincomearerecognizedinothercomprehensiveincome,andwhenthefinancialassetisderecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincometoretainedearnings.DuringtheperiodduringwhichtheGroupholdstheinvestmentinthenon-tradableequityinstrument,thedividendincomeisrecognizedandrecordedinprofitorlossfortheperiodwhentheGroup'srighttoreceivedividendshasbeenestablished,theeconomicbenefitsassociatedwiththedividendsarelikelytoflowintotheGroupandtheamountofthedividendscanbereliablymeasured.3）FinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodFinancialassetsmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiodaresubsequentlymeasuredatfairvalue,andgainsorlossesresultingfromchangesinfairvalueanddividendsandinterestincomerelatedtothefinancialassetarerecordedinprofitorlossfortheperiod.（
）ImpairmentofFinancialInstrumentsTheGroupperformsimpairmentaccountingandrecognizeslossprovisionsforfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,andleasereceivablesbasedonexpectedcreditlosses.
TheGroupmeasuresthelossprovisionatanamountequivalenttotheexpectedcreditlossoverthelifeofnotesreceivableandaccountsreceivableformedbytransactionsregulatedbyrevenuestandardsthatdonotcontainamaterialfinancingelementordonottakeintoaccountthefinancingcomponentofcontractsnotexceedingoneyear,aswellasoperatingleasesreceivablearisingfromtransactionsregulatedbyNo.21AccountingStandardforBusinessEnterprises-Leases.
Forotherfinancialinstruments,theGroupassessesthechangeinthecreditriskoftherelevantfinancialinstrumentssinceinitialrecognitionateachbalancesheetdate,exceptforfinancialassetspurchasedorderivedthathaveincurredcreditimpairment.IfthecreditriskoftheFinancialInstrumenthasincreasedsignificantlysincetheinitialrecognition,theGroupmeasuresitslossprovisionbyanamountequivalenttotheexpectedcreditlossoverthelifeofthefinancialinstrument;Ifthecreditriskofthefinancialinstrumentdoesnotincreasesignificantlysincetheinitialrecognition,theGroupmeasuresitslossprovisionbyanamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Increasesorreversalsofcreditlossprovisionsarerecognizedasimpairmentlossesorgainsinprofitorlossfortheperiod,exceptforfinancial
assetsclassifiedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome.Forfinancialassetsclassifiedasmeasuredatfairvalueandthechangethereofisrecordedinothercomprehensiveincome,theGrouprecognizesacreditlossprovisioninothercomprehensiveincomeandincludesimpairmentlossesorgainsinprofitorlossfortheperiodwithoutreducingthecarryingamountofthefinancialassetasshowninthebalancesheet.WheretheGrouphasmeasuredalossprovisionintheprecedingaccountingperiodbyanamountequivalenttotheexpectedcreditlossoverthelifeofthefinancialinstrument,butthefinancialinstrumentisnolongersubjecttoasignificantincreaseincreditrisksincetheinitialrecognitionattheperiodbalancesheetdate,theGroupmeasuresthelossprovisionforthefinancialinstrumentattheperiodbalancesheetdatebyanamountequivalenttotheexpectedcreditlossinthenext12months,andtheresultingreversalamountforlossprovisionisrecognizedasanimpairmentgaininprofitorlossfortheperiod.1）SignificantincreaseincreditriskUsingreasonablyandevidence-basedforward-lookinginformationavailable,theGroupcomparestheriskofdefaultonfinancialinstrumentsatthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondatetodeterminewhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.Inassessingwhethercreditriskhasincreasedsignificantly,theGroupwillconsiderthefollowingfactors:
(1)whethertheinternalpriceindicatorshavechangedsignificantlyduetochangesincreditrisk.
(2)whethertheinterestrateorothertermsofanexistingfinancialinstrumenthavechangedsignificantly(e.g.,strictercontractualterms,additionalcollateralorhigheryields)iftheexistingfinancialinstrumentisderivedorissuedasanewfinancialinstrumentatthebalancesheetdate.
(3)whethertherehasbeenasignificantchangeintheexternalmarketindicatorsofthecreditriskofthesamefinancialinstrumentorsimilarfinancialinstrumentswiththesameestimatedduration.Theseindicatorsinclude:creditspreads,creditdefaultswappricesforborrowers,thelengthandextenttowhichthefairvalueoffinancialassetsislessthantheiramortizedcost,andothermarketinformationrelevanttoborrowers(suchaschangesinthepriceofborrowers'debtorequityinstruments).
(4)whethertherehasbeenasignificantchangeintheexternalcreditratingofthefinancialinstrumentinfactorexpectation.
(5)whethertheactualorexpectedinternalcreditratingofthedebtorhasbeendowngraded.
(6)whethertherehasbeenanadversechangeinbusiness,financialoreconomiccircumstancesthatisexpectedtoresultinasignificantchangeinthedebtor'sabilitytomeetitsdebtservicingobligations.
(7)whethertherehasbeenasignificantchangeintheactualorexpectedoperatingresultsofthedebtor.
(8)whetherthecreditriskofotherfinancialinstrumentsissuedbythesamedebtorhasincreasedsignificantly.
(9)whethertherehasbeenasignificantadversechangeintheregulatory,economicortechnicalenvironmentinwhichthedebtorislocated.
(10)whethertherehasbeenasignificantchangeinthevalueofthecollateralusedascollateralforthedebtorinthequalityoftheguaranteeorcreditenhancementprovidedbyathirdparty.Thesechangesareexpectedtoreducetheeconomicincentiveforthedebtortorepaytheloanwithinthetermspecifiedinthecontractoraffecttheprobabilityofdefault.
(11)whethertherehasbeenasignificantchangeintheeconomicincentiveexpectedtoreducetheborrower'srepaymentwithinthetermagreedinthecontract.
(12)whethertherehasbeenachangeintheexpectationsoftheloancontract,includingthewaiveroramendmentofcontractualobligationsthatmayresultfromtheanticipatedbreachofthecontract,thegrantingofinterest-freeperiods,interestratejumps,requestsforadditionalcollateralorguarantees,orotherchangestothecontractualframeworkoffinancialinstruments.
(13)whethertherehasbeenasignificantchangeinthedebtor'sexpectedperformanceandrepaymentbehavior.
(14)WhethertheGroup'screditmanagementmethodsforfinancialinstrumentshavechanged.Regardlessofwhetherthecreditriskhasincreasedsignificantlyaftertheaboveassessment,whenthepaymentofafinancialinstrumentcontracthasbeenoverdueformorethan(inclusive)30days,itindicatesthatthecreditriskofthefinancialinstrumenthasincreasedsignificantly.Atthebalancesheetdate,iftheGroupdeterminesthatafinancialinstrumenthasonlyalowcreditrisk,theGroupassumesthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceitsinitialrecognition.Afinancialinstrumentisconsideredtohavealowcreditriskifithasalowriskofdefault,theborrower'sabilitytomeetitscontractualcashflowobligationsintheshorttermisstrong,andevenifthereareadversechangesintheeconomicsituationandoperatingenvironmentoveralongerperiodoftimethatdonotnecessarilyreducetheborrower'sperformanceofitscontractualcashobligations.
2）Financialassetsthathaveundergonecreditimpairment
WhereoneormoreeventsoccurinwhichtheGroupexpectstoadverselyaffectthefuturecashflowsofafinancialasset,thefinancialassetbecomesafinancialassetthathasexperiencedcreditimpairment.Evidencethatcreditimpairmentoffinancialassetshasoccurredincludesthefollowingobservableinformation:
a)significantfinancialdifficultiesoftheissuerordebtor;b)Breachofcontractbythedebtor,suchasdefaultordelayinpaymentofinterestorprincipal;c)Thecreditorgivesthedebtorconcessionsundereconomicorcontractualconsiderationsrelatingtothe
debtor'sfinancialdifficultiesthatwouldnothavebeenmadeunderanyothercircumstances;d)Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;e)Thefinancialdifficultiesoftheissuerordebtorthatresultinthedisappearanceofanactivemarketforthat
financialasset;
f)Purchaseorderiveafinancialassetatasubstantialdiscountthatreflectsthefactthatacreditlosshas
occurred.BasedontheGroup'sinternalcreditriskmanagement,theGroupconsidersaneventofdefaulttohaveoccurredwhentheinternallyadvisedorexternallyobtainedinformationindicatesthatthedebtorofthefinancialinstrumentcannotfullypaycreditorsincludingtheGroup(withoutregardtoanysecurityobtainedbytheGroup).Notwithstandingtheaboveassessment,ifacontractpaymentforafinancialinstrumentisoverdueformorethan90days(inclusive),theGrouppresumesthatthefinancialinstrumenthasdefaulted.3）DeterminationofExpectedCreditLossTheGroupusesanimpairmentmatrixonaportfoliobasisonnotesreceivable,accountsreceivableandotherreceivablestodeterminecreditlossesonrelevantfinancialinstruments.TheGroupclassifiesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.ThecommoncreditriskcharacteristicsadoptedbytheGroupinclude:typeoffinancialinstrument,creditriskrating,typeofcollateral,dateofinitialrecognition,industryinwhichthedebtorisin,valueofcollateralrelativetofinancialassets,etc.Forfinancialassetsandleasereceivables,theexpectedcreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsduetotheGroupandthecashflowsexpectedtobecollected.ThereflectionfactorsoftheGroup'smethodologyformeasuringexpectedcreditlossesonfinancialinstrumentsinclude:anunbiasedprobability-weightedaverageamountdeterminedbyevaluatingarangeofpossibleoutcomes;thetimevalueofmoney;reasonableandwell-foundedinformationaboutpastevents,currentconditions,andprojectionsoffutureeconomicconditionsthatcanbeobtainedatthebalancesheetdatewithoutunnecessaryadditionalcostsorefforts.4）Write-downofFinancialAssetsWheretheGroupnolongerreasonablyexpectsthatthecontractualcashflowsoffinancialassetswillberecoveredinwholeorinpart,thecarryingbalanceofthefinancialassetswillbewrittendowndirectly.Suchwrite-downsconstitutederecognitionoftheunderlyingfinancialassets.
（3）TransferofFinancialAssetsFinancialassetsthatmeetoneofthefollowingconditionsarederecognized:(1)thecontractualrighttoreceivecashflowsfromthefinancialassetisterminated;(2)thefinancialassethasbeentransferredandsubstantiallyalloftherisksandrewardsintheownershipofthefinancialassethavebeentransferredtothetransferringparty;(3)thefinancialassethasbeentransferred,andalthoughtheGrouphasneithertransferrednorretainedsubstantiallyalloftherisksandrewardsintheownershipofthefinancialasset,ithasnotretainedcontroloverthefinancialasset.WheretheGroupneithertransfersnorretainssubstantiallyalloftherisksandrewardsinownershipofafinancialasset,andretainscontrolofthefinancialasset,itwillcontinuetorecognizethetransferredfinancialassettotheextentthatitcontinuestobeinvolvedinthetransferredfinancialassetandrecognizetherelevantliabilitiesaccordingly.TheGroupmeasurestherelevantliabilitiesasfollows:
Wherethetransferredfinancialassetsaremeasuredatamortizedcost,thecarryingamountoftherelevantliabilityisequaltothecarryingamountofthefinancialassetthatcontinuestobeinvolvedinthetransferredlesstheamortizedcostoftherightsretainedbytheGroup(iftheGroupretainstherelevantrightsasaresultofthetransferoffinancialassets)plustheamortizedcostoftheobligationsassumedbythegroup(ifthegrouphasassumedtherelevantobligationsasaresultofthetransferoffinancialassets),andtherelevantliabilitiesarenotdesignatedasfinancialliabilitiesmeasuredatfairvalueandchangesinwhicharerecordedinprofitorlossfortheperiod.Wherethetransferredfinancialassetsaremeasuredatfairvalue,thecarryingamountoftherelevantliabilitiesisequaltothecarryingamountofthefinancialassetsthatcontinuetobeinvolvedinthetransferredfinancialassetslessthefairvalueoftherightsretainedbytheGroup(iftheGroupretainstherelevantrightsasaresultofthetransferoffinancialassets)plusthefairvalueoftheobligationsassumedbytheGroup(iftheGrouphasassumedsuchobligationsasaresultofthetransferoffinancialassets),thefairvalueofsuchrightsandobligationsisthefairvaluewhenmeasuredonanindependentbasis.
Iftheoveralltransferoffinancialassetssatisfiestheconditionsforderecognition,thedifferencebetweenthecarryingamountofthetransferredfinancialassetsatthederecognitiondateandtheconsiderationreceivedasaresultofthetransferofthefinancialandthesumoftheamountcorrespondingtothederecognitionportionoftheaccumulatedfairvaluechangeoriginallyincludedinothercomprehensiveincomeisincludedinprofitorlossfortheperiod.IftheGrouptransfersfinancialassetsthatareinvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,theaccruedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.
Ifapartialtransferoffinancialassetssatisfiestheconditionsforderecognition,thecarryingamountofthefinancialassetsasawholebeforethetransferisapportionedbetweenthederecognizedportionandthecontinuingrecognitionportionattherespectiverelativefairvalueonthetransferdate,andthedifferencebetweenthesumoftheamountoftheconsiderationreceivedinthederecognizedportionandtheamountcorrespondingtothederecognizedportionoftheaccumulatedfairvaluechangeoriginallyincludedinothercomprehensiveincomeandthecarryingamountofthederecognizedportionatthederecognitiondateisincludedinprofitorlossforthecurrentperiod.IftheGrouptransfersfinancialassetsthatareinvestmentsinnon-tradedequityinstrumentsdesignatedasmeasuredatfairvalueandchangesinwhicharerecognizedinothercomprehensiveincome,theaccruedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.
Iftheconditionsforderecognitionarenotmetfortheoveralltransferoffinancialassets,theGroupcontinuestorecognizethetransferredfinancialassetsasawholeandrecognizestheconsiderationreceivedasaliability.
（4）Classificationoffinancialliabilitiesandequityinstruments
TheGroupclassifiesthefinancialinstrumentsortheircomponentsasfinancialliabilitiesorequityinstrumentsatinitialrecognitionaccordingtothecontracttermsofthefinancialinstrumentsissuedandtheireconomicessence,notjustinlegalform,combinedwiththedefinitionsoffinancialliabilitiesandequityinstruments.
1)Classification,recognitionandmeasurementoffinancialliabilities
Financialliabilitiesaredividedintofinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesatinitialrecognitionandotherfinancialliabilities.1Financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses
Financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesincludetransactionalfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses.Exceptforderivativefinancialliabilitieswhicharelistedseparately,financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesarelistedastransactionalfinancialliabilities.Financialliabilitiesthatmeetoneofthefollowingconditions,indicatethatthepurposeoftheGroup'sfinancialliabilitiesistransactional:
Thepurposeofundertakingrelevantfinancialliabilitiesismainlytorepurchaseinthenearfuture.Therelevantfinancialliabilitiesarepartoftheidentifiablefinancialinstrumentportfolioundercentralizedmanagementattheinitialrecognition,andthereisobjectiveevidencetoshowtheactualshort-termprofitmodelinthenearfuture.Relatedfinancialliabilitiesarederivatives.Exceptforderivativesthatmeetthedefinitionoffinancialguaranteecontractandderivativesthataredesignatedaseffectivehedginginstruments.TheGroupcandesignatefinancialliabilitiesthatmeetoneofthefollowingconditionsasfinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesatinitialrecognition:(1)Thedesignationcaneliminateorsignificantlyreduceaccountingmismatch;(2)AccordingtotheriskmanagementorinvestmentstrategystatedintheformalwrittendocumentsoftheGroup,thefinancialliabilityportfolioortheportfoliooffinancialassetsandfinancialliabilitiesaremanagedandevaluatedonthebasisoffairvalue,andreportedtokeymanagementpersonnelwithintheGrouponthisbasis;(3)Qualifiedmixedcontractscontainingembeddedderivatives.Transactionalfinancialliabilitiesaresubsequentlymeasuredatfairvalue,andgainsorlossescausedbychangesinfairvalueanddividendsorinterestexpensesrelatedtothesefinancialliabilitiesareincludedincurrentprofitsandlosses.Forfinancialliabilitiesdesignatedasbeingmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses,thechangesinfairvalueofthefinancialliabilitiescausedbychangesintheGroup'sowncreditriskareincludedinothercomprehensiveincome,andotherchangesinfairvalueareincludedinthecurrentprofitsandlosses.Whenthefinancialliabilitiesarederecognized,theaccumulatedchangeofitsfairvaluecausedbythechangeoftheirowncreditriskpreviouslyincludedinothercomprehensiveincomeiscarriedforwardtoretainedincome.Dividendsorinterestexpensesrelatedtothesefinancialliabilitiesareincludedinthecurrentprofitsandlosses.Iftheaccountingmismatchinprofitandlosswillbecausedorenlargedbyhandlingtheimpactofthechangesincreditriskofthesefinancialliabilitiesintheaboveway,theGroupwillincludeallthegainsorlossesofthefinancialliabilities(includingtheamountaffectedbythechangesincreditrisk)inthecurrentprofitsandlosses.2OtherfinancialliabilitiesOtherfinancialliabilities,exceptthosecausedbythetransferoffinancialassetsthatdonotmeettheconditionsforderecognitionorcontinuetobeinvolvedinthetransferredfinancialassets,areclassifiedas
financialliabilitiesmeasuredinamortizedcostandsubsequentlymeasuredinamortizedcost.Thegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.IfthemodificationorrenegotiationofthecontractbetweentheGroupandthecounterpartydoesnotresultintheterminationoftherecognitionofthefinancialliabilitiesthataresubsequentlymeasuredaccordingtoamortizedcost,butthecashflowofthecontractchanges,theGrouprecalculatesthebookvalueofthefinancialliabilitiesandrecordstherelevantgainsorlossesintothecurrentprofitsandlosses.TherecalculatedbookvalueofsuchfinancialliabilitiesisdeterminedbytheGroupaccordingtothepresentvalueofdiscountedcontractcashflowthatwillberenegotiatedormodifiedaccordingtotheoriginalactualinterestrateofthefinancialliabilities.Forallcostsorexpensesarisingfromthemodificationorrenegotiationofthecontract,theGroupadjuststhebookvalueofthemodifiedfinancialliabilitiesandamortizesthemwithintheremainingtermofthemodifiedfinancialliabilities.
2)Derecognitionoffinancialliabilities
Ifallorpartofthecurrentobligationsoffinancialliabilitieshavebeendischarged,therecognitionoffinancialliabilitiesorpartthereofshallbeterminated.IftheGroup(theBorrower)andtheLenderwillsignanagreementtoreplacetheoriginalfinancialliabilitiesbyundertakingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheoriginalfinancialliabilities,theGroupwillderecognizetheoriginalfinancialliabilitiesandrecognizethenewfinancialliabilitiesatthesametime.Ifallorpartofthefinancialliabilitiesarederecognized,thedifferencebetweenthebookvalueofthederecognizedpartandtheconsiderationpaid(includingthetransferrednon-cashassetsorthenewfinancialliabilitiesundertaken)willbeincludedinthecurrentprofitsandlosses.
3)EquityinstrumentsEquityinstrumentsrefertocontractsthatcanprovethattheGrouphasresidualinterestsinassetsafterdeductingallliabilities.Theissuance(includingrefinancing),repurchase,saleorcancellationofequityinstrumentsbytheGrouparetreatedaschangesinequity.TheGroupdoesnotrecognizechangesinthefairvalueofequityinstruments.Transactioncostsrelatedtoequitytransactionsaredeductedfromequity.ThedistributionofequityinstrumentholdersbytheGroupistreatedasprofitdistribution,andthestockdividendspaiddonotaffectthetotalshareholders'equity.
（5）Offsetoffinancialassetsandfinancialliabilities
WhentheGrouphasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilities,andthislegalrightiscurrentlyenforceable,andtheGroupplanstosettlethefinancialassetsonanetbasisorrealizethefinancialassetsandpayoffthefinancialliabilitiesatthesametime,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetattheamountafteroffsettingeachother.Inaddition,financialassetsandfinancialliabilitiesarelistedseparatelyinthebalancesheetanddonotoffseteachother.
11.Notesreceivable
Pleaserefertothe"10.FinancialInstruments"of"V.SignificantAccountingPoliciesandAccountingEstimates"of"Section10FinancialReporting"ofthisreport.
12.Accountsreceivable
Pleaserefertothe"10.FinancialInstruments"of"V.SignificantAccountingPoliciesandAccountingEstimates"of"Section10FinancialReporting"ofthisreport.
13.Receivablefinancing
Fornotesreceivableclassifiedasatfairvalueandwhosechangesareincludedinothercomprehensiveincome,thepartwithatermofoneyear(includingoneyear)fromthedateofacquisitionislistedasreceivablefinancing;thepartwithatermofmorethanoneyearfromthedateofacquisitionislistedasothercreditor'srightinvestment.SeeNote(X)5"FinancialInstruments"forrelevantaccountingpolicies.
14.Otheraccountreceivable
Determinationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivables
Pleaserefertothe"10.FinancialInstruments"of"V.SignificantAccountingPoliciesandAccountingEstimates"of"Section10FinancialReporting"ofthisreport.
15.Inventory（
）Classificationofinventory
TheGroup'sinventorymainlyincludesrawmaterials,productsinprocess,finishedproductsandmaterialsentrustedforprocessing.Inventoryisinitiallymeasuredatcost,whichincludespurchasingcost,processingcostandotherexpensesincurredtomakeinventoryreachthecurrentplaceandusestate.
（2）Valuationmethodofissuedinventory
Whentheinventoryisissued,theactualcostoftheissuedinventoryisdeterminedbytheweightedmeanmethod.
（3）Determinationbasisofnetrealizablevalueofinventory
Onthebalancesheetdate,inventoriesaremeasuredaccordingtothelowerofcostandnetrealizablevalue.Whenthenetrealizablevalueislowerthanthecost,theinventorydepreciationprovisioniswithdrawn.
Netrealizablevaluereferstotheestimatedsellingpriceofinventoryminustheestimatedcost,estimatedsalesexpensesandrelatedtaxesandfeesatthetimeofcompletionindailyactivities.Whendeterminingthenetrealizablevalueofinventory,itisbasedontheconclusiveevidenceobtained,andthepurposeofholdinginventoryandtheinfluenceofeventsafterthebalancesheetdatearealsoconsidered.
Inventorydepreciationprovisionisdrawnaccordingtothedifferencebetweenthecostofasingleinventoryitemanditsnetrealizablevalue.
Aftertheinventorydepreciationprovisioniswithdrawn,iftheinfluencingfactorsofpreviouswrite-downofinventoryvaluehavedisappeared,resultinginthenetrealizablevalueofinventorybeinghigherthanitsbookvalue,itwillbereversedwithintheoriginalamountofinventorydepreciationprovision,andthereversedamountwillbeincludedinthecurrentprofitsandlosses.
（4）Inventorysystem
Theinventorysystemisperpetualinventorysystem.（
）Amortizationmethodoflow-valueconsumablesandpackagingmaterials
Turnovermaterialsandlow-valueconsumablesareamortizedbystraight-linemethodorone-timewrite-offmethod.
16.Contractassets
None
17.ContractCost
None
18.Held-for-saleassets
None
19.Creditor'srightsinvestment
None
20.OtherCreditor'srightsinvestment
None
21.Long-termaccountreceivable
None
22.Long-termequityinvestment
（1）Criteriaforjointcontrolandimportantinfluence
Controlmeansthattheinvestorhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytoinfluencetheamountofreturnsbyusingthepowerovertheinvestee.Jointcontrolreferstothecommoncontrolofanarrangementaccordingtotherelevantagreement,andthattherelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhosharethecontrolrightsbeforemakingdecisions.Significantinfluencereferstothepowertoparticipateindecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butitcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhethertheinvesteecanbecontrolledorexertsignificantinfluence,thepotentialvotingrightsfactorssuchasconvertiblecorporatebondsandcurrentexecutablewarrantsoftheinvesteeheldbyinvestorsandotherpartieshavebeenconsidered.
（2）Determinationofinitialinvestmentcost
Forthelong-termequityinvestmentobtainedbybusinessmergerunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheshareofthebookvalueoftheowners'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate.Thecapitalreserveshallbeadjustedforthedifferencebetweentheinitialinvestmentcostoflong-termequity
investmentandthebookvalueofcashpaid,non-cashassetstransferredanddebtsundertaken;Ifthecapitalreserveisinsufficienttobeoffset,theretainedincomeshallbeadjusted.Ifequitysecuritiesareissuedasthemergerconsideration,theinitialinvestmentcostoflong-termequityinvestmentshallbetheshareofthebookvalueoftheowners'equityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate,thesharecapitalshallbethetotalfacevalueofissuedshares,andthecapitalreserveshallbeadjustedaccordingtothedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthetotalfacevalueoftheissuedshares;Ifthecapitalreserveisinsufficienttobeoffset,theretainedincomeshallbeadjusted.Forthelong-termequityinvestmentobtainedfromthebusinessmergernotunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbethemergercostonthepurchasedate.Intermediaryexpensessuchasaudit,legalservices,evaluationandconsultationandotherrelatedmanagementexpensesincurredbythemergingpartyorthepurchaserforbusinessmergerareincludedinthecurrentprofitsandlosseswhenincurred.
Long-termequityinvestmentobtainedbyothermeansexceptthelong-termequityinvestmentformedbybusinessmergershallbeinitiallymeasuredatcost.Iftheadditionalinvestmentcanexertasignificantinfluenceorimplementjointcontrolwhichhoweverdoesnotconstitutecontrolontheinvestee,thelong-termequityinvestmentcostisthesumofthefairvalueoftheoriginalequityinvestmentdeterminedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsplusthenewinvestmentcost.
（3）Subsequentmeasurementandprofitandlossrecognitionmethod1）Long-termequityinvestmentcalculatedbycostmethodThecompany'sfinancialstatementsusethecostmethodtocalculatethelong-termequityinvestmentinsubsidiaries.SubsidiariesrefertotheinvestedentitiesoverwhichtheGroupcanexercisecontrol.Long-termequityinvestmentaccountedbycostmethodismeasuredattheinitialinvestmentcost.Addorrecoverinvestmenttoadjustthecostoflong-termequityinvestment.Thecurrentinvestmentincomeisrecognizedaccordingtothecashdividendorprofitdeclaredbytheinvestee.2）Long-termequityinvestmentcalculatedbyequitymethodTheGroup'sinvestmentinassociatedenterprisesandjointventuresisaccountedforbytheequitymethod.AnassociatedenterprisereferstotheinvesteeoverwhichtheGroupcanexertsignificantinfluence,andajointventurereferstoajointventurearrangementinwhichtheGrouphasrightsonlyoverthenetassetsofthearrangement.Whenaccountingbyequitymethod,iftheinitialinvestmentcostoflong-termequityinvestmentisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheinvestee,theinitialinvestmentcostoflong-termequityinvestmentwillnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvestee,thedifferenceshallbeincludedinthecurrentprofitsandlosses,andthecostoflong-termequityinvestmentshallbeadjusted.Whenaccountingbytheequitymethod,theinvestmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofthenetprofitandlossandothercomprehensiveincomerealizedbytheinvestee,andthebookvalueoflong-termequityinvestmentisadjusted;Theshareiscalculatedaccordingtotheprofitorcashdividenddeclaredbytheinvestee,andthebookvalueoflong-termequityinvestmentisreduced
accordingly;Forotherchangesintheowners'equityoftheinvesteeexceptthenetprofitandloss,othercomprehensiveincomeandprofitdistribution,thebookvalueofthelong-termequityinvestmentshallbeadjustedandincludedinthecapitalreserve.Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,thenetprofitoftheinvesteeshallbeadjustedandrecognizedbasedonthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofinvestment.IftheaccountingpoliciesandaccountingperiodsadoptedbytheinvesteeareinconsistentwiththoseoftheCompany,thefinancialstatementsoftheinvesteeshallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany,soastorecognizetheinvestmentincomeandothercomprehensiveincome.ForthetransactionsbetweentheGroupandtheassociatedenterprisesandjointventures,iftheassetsinvestedorsolddonotconstitutebusiness,theunrealizedinternaltransactiongainsandlossesshallbeoffsetbytheportionbelongingtotheGroupaccordingtotheproportionenjoyed,andtheinvestmentgainsandlossesshallberecognizedonthisbasis.However,theunrealizedinternaltransactionlossesbetweentheGroupandtheinvesteebelongtotheimpairmentlossesofthetransferredassetsandshallnotbeoffset.Whenrecognizingtheshareofthenetlossoftheinvestee,thebookvalueofthelong-termequityinvestmentandotherlong-termrightsandintereststhatsubstantiallyconstitutethenetinvestmentoftheinvesteeshallbewrittendowntozero.Inaddition,iftheGroupisobligatedtobearadditionallossestotheinvestee,theestimatedliabilitieswillberecognizedaccordingtotheexpectedobligationsandincludedinthecurrentinvestmentlosses.Iftheinvesteerealizesthenetprofitinthefuture,theGroupwillresumetherecognitionoftheincomeshareaftertheincomesharemakesupfortheunrecognizedlossshare.
（4）Disposaloflong-termequityinvestmentWhendisposingoflong-termequityinvestment,thedifferencebetweenitsbookvalueandtheactualpurchasepriceisincludedinthecurrentprofitsandlosses.Forthelong-termequityinvestmentaccountedbytheequitymethod,iftheremainingequityafterdisposalisstillaccountedbytheequitymethod,othercomprehensiveincomeoriginallyaccountedbytheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee;Owners'equityrecognizedbychangesinotherowners'equityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbecarriedforwardtocurrentprofitsandlossesinproportion.Ifthelong-termequityinvestmentaccountedforbythecostmethodisstillaccountedforbythecostmethodafterdisposal,theothercomprehensiveincomerecognizedbytheequitymethodaccountingortherecognitionoffinancialinstrumentsandaccountingstandardsbeforegainingcontroloftheinvesteeshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee;Changesinowners'equityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistributioninthenetassetsoftheinvesteerecognizedbyusingtheequitymethodarecarriedforwardtothecurrentprofitsandlossesinproportion.
IftheGrouplosescontroloftheinvesteeduetothedisposalofpartofitsequityinvestment,iftheremainingequityafterdisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvesteeinthepreparationofindividualfinancialstatements,itshallbeaccountedforbytheequitymethodinstead,andtheremainingequityshallbetreatedasifitwereadjustedbytheequitymethodatthetimeofacquisition;Iftheremainingequityafterdisposalcannotbejointlycontrolledorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotherelevantprovisionsofthestandardsfortherecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateofcontrollossshallbeincludedinthecurrentprofitsandlosses.ForothercomprehensiveincomerecognizedbytheGroupbeforeitgainscontroloftheinvestee,whenitlosescontroloftheinvestee,itshallbetreatedonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.Changesinowners'equityinthenetassetsofthe
investee,exceptnetprofitandloss,othercomprehensiveincomeandprofitdistribution,shallbecarriedforwardtocurrentprofitsandlosseswhenitlosescontroloftheinvestee.Iftheremainingequityafterdisposalisaccountedbytheequitymethod,othercomprehensiveincomeandotherowners'equitywillbecarriedforwardinproportion;Iftheremainingequityafterdisposalischangedtoaccountingtreatmentaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,allothercomprehensiveincomeandotherowners'equitywillbecarriedforward.IftheGrouplosesjointcontrolorsignificantinfluenceontheinvesteeduetothedisposalofsomeequityinvestments,theremainingequityafterdisposalshallbeaccountedforaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateofjointcontrollossorsignificantinfluenceshallbeincludedinthecurrentprofitsandlosses.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetoaccountingbytheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesbytheinvesteewhentheequitymethodisterminated.Alltheowners'equityrecognizedbytheinvesteeduetochangesinotherowners'equityexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbecarriedforwardtothecurrentinvestmentincomewhentheequitymethodisterminated.
TheGroupdisposesoftheequityinvestmentinitssubsidiariesstepbystepthroughmultipletransactionsuntilitlosescontrol.Iftheabovetransactionsbelongtoapackagetransaction,eachtransactionwillbetreatedasatransactionthatdisposesoftheequityinvestmentinitssubsidiariesandlosescontrol.Beforelosingcontrol,thedifferencebetweenthepriceofeachdisposalandthebookvalueofthelong-termequityinvestmentcorrespondingtothedisposedequitywillberecognizedasothercomprehensiveincome,andthencarriedforwardtothecurrentprofitsandlosseswhenitlosescontrol.
23.Investmentrealestate
Investmentrealestatereferstorealestateheldtoearnrentorcapitalappreciation,orboth,includingrentedhousesandbuildings.
Investmentrealestateisinitiallymeasuredatcost.Subsequentexpendituresrelatedtoinvestmentrealestateareincludedinthecostofinvestmentrealestateiftheeconomicbenefitsrelatedtotheassetarelikelytoflowinandthecostcanbemeasuredreliably.Othersubsequentexpendituresareincludedinthecurrentprofitsandlosseswhenincurred.
TheGroupadoptsthecostmodelforsubsequentmeasurementofinvestmentrealestate,anddepreciatesoramortizesitaccordingtothepolicyconsistentwiththerighttousehouses,buildingsorland.
Whentheinvestmentrealestateisdisposedof,orpermanentlywithdrawnfromuse,anditisnotexpectedtoobtaineconomicbenefitsfromitsdisposal,therecognitionoftheinvestmentrealestatewillbeterminated.
Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentrealestateafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitsandlosses.
24.Fixedassets
（1）Recognitionconditions
Fixedassetsrefertotangibleassetsheldforproducinggoods,providingservices,leasingormanagement,withaservicelifeofmorethanonefiscalyear.FixedassetsarerecognizedonlywhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.
Subsequentexpendituresrelatedtofixedassetsshallbeincludedinthecostoffixedassetsiftheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowinandthecostcanbemeasuredreliably,andthebookvalueofthereplacedpartshallbederecognized.Othersubsequentexpendituresareincludedinthecurrentprofitsandlosseswhenincurred.
（2）Depreciationmethod
Fixedassetsshallbedepreciatedwithintheirservicelifebyusingthelife-averagemethodfromthemonthfollowingthescheduledserviceablestate.Thedepreciationmethods,servicelife,estimatednetsalvageandannualdepreciationrateofvariousfixedassetsareasfollows:
| Category | Depreciationlife(year) | Estimatednetsalvagerate(%) | Annualdepreciationrate(%) |
| Housesandbuildings | 10-40 | 0.00-4.00 | 2.40-10.00 |
| Machineryequipment | 10-14 | 4.00 | 6.86-9.60 |
| Transportationequipment | 8 | 4.00 | 12.00 |
| Electronicequipmentandothers | 5 | 4.00 | 19.20 |
EstimatednetsalvagereferstotheamountthattheGroupcurrentlyobtainsfromthedisposaloffixedassetsafterdeductingtheestimateddisposalexpenses,assumingthattheexpectedservicelifeofthefixedassetshasexpiredandisintheexpectedstateattheendoftheservicelife.
（3）Otherinstructions
Whenthefixedassetsaredisposedoforitisexpectedthatnoeconomicbenefitscanbegeneratedthroughtheuseordisposal,thefixedassetsisderecognized.Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageoffixassetsafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitsandlosses.
Atleastattheendoftheyear,theGroupwillreviewtheservicelife,estimatednetsalvageanddepreciationmethodoffixedassets,andifthereisanychange,itwillbetreatedasachangeinaccountingestimate.
（4）Cognizanceevidenceandpricingmethodoffinancialleasingfixedassets
None
25.Constructioninprogress
Theconstructioninprogressismeasuredaccordingtotheactualcost,whichincludesvariousprojectexpendituresincurredduringtheconstructionperiod,capitalizedborrowingcostsbeforetheprojectreachesthescheduledserviceablestateandotherrelatedexpenses.Nodepreciationisallowedforconstructioninprogress.Constructioninprogressiscarriedforwardtofixedassetsafteritreachesthescheduledserviceablestate.
26.Borrowingcosts
Borrowingcoststhatcanbedirectlyattributedtothepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditionswillbecapitalizedwhentheassetexpenditurehasoccurred,theborrowingcostshaveoccurred,andthenecessarypurchase,constructionorproductionactivitiestomaketheassetsreachthepredeterminedserviceableorsaleablestatehavebegun;Capitalizationshallstopwhentheassetsthatmeet
thecapitalizationconditionspurchased,constructedorproducedreachthepredeterminedserviceablestateorsaleablestate.Theremainingborrowingcostsarerecognizedasexpensesinthecurrentperiod.
27.BiologicalAssetsNone
28.Oil&GasassetsNone
29.RighttouseassetsNone
30.Intangibleassets
（1）Valuationmethod,servicelifeandimpairmenttestofintangibleassetsIntangibleassetsincludelanduserights,softwareandpatentrights.Intangibleassetsareinitiallymeasuredatcost.Intangibleassetswithlimitedservicelifeshallbeamortizedbystraight-linemethodinequalinstallmentswithintheirexpectedservicelifefromthetimetheyareavailableforuse.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethod,servicelifeandestimatednetsalvageofvariousintangibleassetsareasfollows:
| Category | Amortizationmethod | Servicelife(year) | Estimatednetsalvagerate(%) |
| Landuseright | Straight-linemethod | 50 | - |
| Software | Straight-linemethod | 5 | - |
| Patent | Straight-linemethod | 15 | - |
Attheendoftheperiod,theservicelifeandamortizationmethodofintangibleassetswithlimitedservicelifeshallbereviewedandadjustedifnecessary.Fortheimpairmenttestofintangibleassets,pleaserefertoNote(V)19"ImpairmentofLong-termAssets"fordetails.
（2）InternalR&Dexpenditure
Expenditureintheresearchstageisincludedinthecurrentprofitsandlosseswhenincurred.
Expendituresinthedevelopmentstagearerecognizedasintangibleassetsiftheymeetthefollowingconditionsatthesametime.Expendituresinthedevelopmentstagethatcannotmeetthefollowingconditionsareincludedinthecurrentprofitsandlosses:
(1)Itistechnicallyfeasibletocompletetheintangibleassetssothattheycanbeusedorsold;
(2)Havingtheintentiontocompletetheintangibleassetsanduseorsellthem;
(3)Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingtheabilitytoprovethattheproductsproducedbyusingtheintangibleassetsexistinthemarketortheintangibleassetsthemselvesexistinthemarket,andtheintangibleassetswillbeusedinternally,whichcanprovetheirusefulness;
(4)Havingsufficienttechnical,financialandotherresourcestosupportthedevelopmentoftheintangibleassets,andhavingtheabilitytouseorselltheintangibleassets;
(5)Expenditureattributabletothedevelopmentstageoftheintangibleassetscanbereliablymeasured.
Ifitisimpossibletodistinguishbetweenresearchstageexpenditureanddevelopmentstageexpenditure,alltheR&Dexpendituresincurredshallbeincludedinthecurrentprofitsandlosses.Thecostofintangibleassetsformedbyinternaldevelopmentactivitiesonlyincludesthetotalexpenditurefromthetimewhenthecapitalizationconditionsaremettothetimewhentheintangibleassetsreachtheintendeduse,andtheexpenditurethathasbeenexpensedintoprofitandlossbeforethecapitalizationconditionsaremetinthedevelopmentprocesswillnotbeadjusted.
31.Long-termassetimpairment
Oneachbalancesheetdate,theGroupcheckswhethertherearesignsthatlong-termequityinvestment,investmentrealestatemeasuredbycostmethod,fixedassets,constructioninprogress,right-to-useassetsandintangibleassetswithdefiniteservicelifemaybeimpaired.Iftheseassetsshowsignsofimpairment,therecoverableamountisestimated.Intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheserviceablestatearetestedforimpairmenteveryyear,regardlessofwhetherwithsignsofimpairment.
Estimatingtherecoverableamountofanassetisbasedonasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupisdeterminedbasedontheassetgrouptowhichtheassetbelongs.Therecoverableamountisthehigherofthenetamountofthefairvalueoftheassetorassetgroupminusthedisposalexpensesorthepresentvalueofitsexpectedfuturecashflow.
Iftherecoverableamountofanassetislowerthanitsbookvalue,theassetimpairmentprovisionshallbeaccruedaccordingtothedifferenceandincludedinthecurrentprofitsandlosses.
Goodwillshallbetestedforimpairmentatleastattheendofeachyear.Whentestingtheimpairmentofgoodwill,itshallbeconductedincombinationwiththerelatedassetgrouporassetgroupportfolio.Thatis,fromthepurchasedate,thebookvalueofgoodwillisallocatedtotheassetgrouporassetgroupportfoliothatcanbenefitfromthesynergisticeffectofbusinessmergerinareasonableway.Iftherecoverableamountoftheassetgrouporassetgroupportfoliocontainingtheallocatedgoodwillislowerthanitsbookvalue,thecorrespondingimpairmentlosswillberecognized.Theamountofimpairmentlosswillfirstlydeductthebookvalueofgoodwillallocatedtotheassetgrouporassetgroupportfolio,andthendeductthebookvalueofotherassetsaccordingtotheproportionofthebookvalueofassetsotherthangoodwillintheassetgrouporassetgroupportfolio.
Oncetheabove-mentionedassetimpairmentlossesarerecognized,theywillnotbereversedinfutureaccountingperiods.
32.Long-termdeferredexpenses
Long-termdeferredexpensesrefertotheexpensesthathaveoccurredbutshouldbebornebythecurrentperiodandsubsequentperiodswithanamortizationperiodofmorethanoneyear.Long-termdeferredexpensesshallbeamortizedevenlybystagesduringtheexpectedbenefitperiod.
33.ContractualliabilitiesContractualliabilitiesrefertotheobligationoftheGrouptotransfergoodsorservicestocustomersforconsiderationreceivedorreceivablefromcustomers.Contractassetsandliabilitiesunderthesamecontractarelistedonanetbasis.
34.EmployeeRemuneration
（1）Accountingtreatmentmethodofshort-termRemunerationDuringtheaccountingperiodwhenemployeesprovideservicesfortheGroup,theGrouprecognizestheactualshort-termremunerationasaliability,andrecordsitintothecurrentprofitsandlossesorrelatedassetcosts.TheemployeewelfareexpensesincurredbytheGroupareincludedinthecurrentprofitsandlossesorrelatedassetcostsaccordingtotheactualamountwhenactuallyincurred.Ifemployeewelfareexpensesarenon-monetarybenefits,theyshallbemeasuredatfairvalue.
Thesocialinsurancepremiumssuchasmedicalinsurancepremium,workinjuryinsurancepremiumandmaternityinsurancepremiumandhousingprovidentfundpaidbytheGroupforemployees,aswellasthetradeunionfundsandemployeeeducationfundswithdrawnbytheGroupaccordingtoregulations,shallbecalculatedaccordingtothestipulatedaccrualbasisandaccrualratioduringtheaccountingperiodwhenemployeesprovideservicesfortheGrouptodeterminetheemployeecompensationamount,andrecognizethecorrespondingliabilities,andbeincludedinthecurrentprofitsandlossesorrelatedassetcosts.
（2）Accountingtreatmentofpost-employmentbenefits
Post-employmentbenefitsarealldefinedcontributionplans.
DuringtheaccountingperiodwhenemployeesprovideservicesfortheGroup,theamountpayablecalculatedaccordingtothesetdepositplanisrecognizedasaliability,andincludedinthecurrentprofitsandlossesorrelatedassetcosts.
（3）Accountingtreatmentofdismissalbenefits
IftheGroupprovidesdismissalbenefitstoemployees,theemployeecompensationliabilitiesarisingfromthedismissalbenefitsshallberecognizedattheearlierofthefollowingtwodates,andincludedinthecurrentprofitsandlosses:whentheGroupcannotunilaterallywithdrawthedismissalbenefitsprovidedbytheplantoterminatelaborrelationsortheproposaltocutback;WhentheGrouprecognizesthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofdismissalbenefits.
（4）AccountingTreatmentMethodofOtherLong-termEmployeeBenefits
None
35.Leaseliabilities
Pleaserefertothe"42.Lease(1)TheCompanyasalessee1)Leaseliability"of"V.SignificantAccountingPoliciesandAccountingEstimates"of"Section10FinancialReporting"ofthisreport
36.EstimatedLiabilities
WhentheobligationrelatedtocontingenciessuchascustomerreturnarethecurrentobligationsundertakenbytheGroup,andthefulfillmentofthisobligationislikelytoleadtotheoutflowofeconomicbenefits,andtheamountofthisobligationcanbemeasuredreliably,itisrecognizedasestimatedliabilities.Onthebalancesheetdate,consideringtherisk,uncertaintyandtimevalueofmoneyrelatedtocontingencies,theestimatedliabilitiesaremeasuredaccordingtothebestestimateoftheexpenditurerequiredtofulfilltherelevantcurrentobligations.Ifthetimevalueofmoneyissignificant,thebestestimateisdeterminedbythediscountedamountofexpectedfuturecashoutflow.
37.Share-basedpaymentShare-basedpaymentoftheGroupisatransactionthatgrantsequityinstrumentsorassumesliabilitiesdeterminedonthebasisofequityinstrumentsinordertoobtainservicesprovidedbyemployees.Share-basedpaymentoftheGroupisequity-settledshare-basedpayment.
（1）Equity-settledshare-basedpayment
Equity-settledshare-basedpaymentgrantedtoemployees
Equity-settledshare-basedpaymentinexchangeforservicesprovidedbyemployeesismeasuredbythefairvalueoftheequityinstrumentsgrantedtoemployeesonthegrantdateintheGroup.Duringthewaitingperiod,theamountofthefairvalueisbasedonthebestestimateofthenumberofexercisableequityinstruments,calculatedbythestraight-linemethodandincludedintherelevantcostsorexpenses,andthecapitalreserveisincreasedaccordingly.
Oneachbalancesheetdateduringthewaitingperiod,theGroupmakesthebestestimatebasedonthelatestsubsequentinformationsuchaschangesinthenumberofemployeeswithvestingrights,andcorrectsthenumberofequityinstrumentswithestimatedvestingrights.Theimpactoftheaboveestimateisincludedintherelevantcostsorexpensesofthecurrentperiod,andthecapitalreserveisadjustedaccordingly.
（2）Accountingtreatmentrelatedtoimplementation,modificationandterminationofshare-basedpaymentplan
WhentheGroupmodifiestheshare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseinservicesobtainedwillberecognizedaccordingly;Ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentswillberecognizedasanincreaseinserviceacquisitionaccordingly.Theincreaseinthefairvalueofequityinstrumentsreferstothedifferencebetweenthefairvalueofequityinstrumentsbeforeandaftermodificationonthemodificationdate.Ifthetotalfairvalueofshare-basedpaymentisreducedorthetermsandconditionsoftheshare-basedpaymentplanaremodifiedinotherwaysthatareunfavorabletoemployees,theaccountingtreatmentfortheservicesobtainedwillcontinue,asifthechangehadneveroccurred,unlesstheGroupcancelspartoralloftheequityinstrumentsgranted.
Duringthewaitingperiod,ifthegrantedequityinstrumentsarecancelled,theGroupwillacceleratethecancellationofthegrantedequityinstruments,andimmediatelyincludetheamounttoberecognizedintheremainingwaitingperiodinthecurrentprofitsandlosses,andatthesametimerecognizethecapitalreserve.Ifemployeesorotherpartiescanchoosetomeettheconditionsofunfeasiblerightsbutfailtomeetthemwithinthewaitingperiod,theGroupwillcancelthemastheinstrumentforgrantingequity.
38.OtherfinancialinstrumentssuchaspreferredstocksandperpetualbondsNone
39.Revenue
AccountingpoliciesadoptedinincomerecognitionandmeasurementTheGroup'sincomemainlycomesfromthefollowingbusiness:
(1)Polarizersales;
(2)Textilesales;
(3)Propertyleasingandmanagement;
(4)Otherbusiness.
TheGrouphasfulfilleditscontractualobligation,thatis,whenthecustomerobtainsthecontrolrightoftherelevantgoodsorservices,theincomewillberecognizedaccordingtothetransactionpriceallocatedtotheperformanceobligation.PerformanceobligationreferstothecommitmentoftheGrouptotransferclearlydistinguishablegoodsorservicestocustomersinthecontract.TransactionpricereferstotheamountofconsiderationthattheGroupisexpectedtoreceiveduetothetransferofgoodsorservicestocustomers,whichhowever,doesnotincludethemoneyreceivedonbehalfofthirdpartiesandthemoneythattheGroupexpectstoreturntocustomers.
TheGroupevaluatesthecontractonthestartdateofthecontract,identifiestheindividualperformanceobligationscontainedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoftimeoratacertainpointoftime.Ifoneofthefollowingconditionsismet,itbelongstotheperformanceobligationwithinacertainperiodoftime,andtheGrouprecognizestheincomewithinacertainperiodoftimeaccordingtotheperformanceprogress:(1)ThecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheperformanceoftheGroup;(2)ThecustomercancontrolthegoodsunderconstructionduringtheperformanceoftheGroup;(3)ThegoodsproducedbytheGroupduringtheperformanceofthecontracthaveirreplaceablepurposes,andtheGrouphastherighttocollectmoneyfortheaccumulatedperformancepartcompletedsofarduringthewholecontractperiod.Otherwise,theGrouprecognizesincomeatthepointwhenthecustomerobtainscontrolovertherelevantgoodsorservices.
Ifthecontractcontainstwoormoreperformanceobligations,theGroupwillallocatethetransactionpricetoeachindividualperformanceobligationonthecontractstartdateaccordingtotherelativeproportionoftheseparatesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligation.However,ifthereisconclusiveevidencethatthecontractdiscountorvariableconsiderationisonlyrelatedtooneormore(butnotall)performanceobligationsinthecontract,theGroupwillallocatethecontractdiscountorvariableconsiderationtooneormorerelatedperformanceobligations.SeparatesellingpricereferstothepriceatwhichtheGroupsellsgoodsorservicestocustomersseparately.Iftheseparatesellingpricecannotbedirectlyobserved,theGroupcomprehensivelyconsidersallrelevantinformationthatcanbereasonablyobtained,andestimatestheseparatesellingpricebyusingobservableinputvaluestothemaximumextent.
Forsaleswithreturnclauses,whenthecustomerobtainsthecontrolrightoftherelevantgoods,theGrouprecognizestheincomeaccordingtotheamountofconsiderationexpectedtobechargedduetothetransferofgoodstothecustomer(thatis,excludingtheamountexpectedtoberefundedduetosalesreturn),andrecognizestheliabilitiesaccordingtotheamountexpectedtoberefundedduetosalesreturn;Atthesametime,accordingtothebookvalueoftheexpectedreturnedgoodsatthetimeoftransfer,thebalanceafterdeducting
theexpectedcostofrecoveringthegoods(includingthelossofthevalueofthereturnedgoods)isrecognizedasanasset,andthenetcarry-overcostoftheaboveassetsisdeductedaccordingtothebookvalueofthetransferredgoodsatthetimeoftransfer.Forsaleswithqualityassuranceclauses,ifthequalityassuranceprovidesaseparateserviceinadditiontoassuringcustomersthatthegoodsorservicessoldmeettheestablishedstandards,thequalityassuranceconstitutesasingleperformanceobligation.Otherwise,theGroupshallhandlethequalityassuranceresponsibilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.
AccordingtowhethertheGrouphascontroloverthegoodsorservicesbeforetransferringthemtocustomers,theGroupjudgeswhetheritisthemainresponsiblepersonortheagentwhenengagingintransactions.IftheGroupcancontrolthegoodsorservicesbeforetransferringthemtocustomers,theGroupisthemainresponsibleperson,andtheincomeisrecognizedaccordingtothetotalconsiderationreceivedorreceivable;Otherwise,theGroup,asanagent,recognizesincomeaccordingtotheexpectedamountofcommissionorhandlingfee,whichisdeterminedaccordingtothenetamountofthetotalconsiderationreceivedorreceivableafterdeductingthepricepayabletootherinterestedparties.
IftheGroupreceivesthepaymentforthesaleofgoodsorservicesfromcustomersinadvance,itwillfirstrecognizethepaymentasaliability,andthenchangeittoincomewhentherelevantperformanceobligationsarefulfilled.WhentheadvancepaymentoftheGroupdoesnotneedtobereturned,andthecustomermaygiveupallorpartofitscontractualrights,iftheGroupisexpectedtobeentitledtotheamountrelatedtothecontractualrightsgivenupbythecustomer,theaboveamountwillberecognizedasincomeinproportionaccordingtothemodeofthecustomer'sexerciseofcontractualrights;Otherwise,theGroupwillonlyconverttherelevantbalanceoftheaboveliabilitiesintoincomewhenitisextremelyunlikelythatthecustomerwilldemandtoperformtheremainingperformanceobligations.
PleaserefertoNote(X)5"TheGroupasalessorrecordstheoperatingleasingbusiness"fortheaccountingpolicyoftheGroup'sincomerecognitioninpropertyleasing.
40.Governmentsubsidies
Governmentsubsidiesrefertothemonetaryassetsandnon-monetaryassetsobtainedbytheGroupfromthegovernmentfreeofcharge.Governmentsubsidiesarerecognizedwhentheycanmeettheconditionsattachedtogovernmentsubsidiesandcanbereceived.
Ifgovernmentsubsidiesaremonetaryassets,theyshallbemeasuredaccordingtotheamountreceivedorreceivable.
（1）Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoassets
Aslong-termassetscanbeformedintheproductionlinesubsidiesandequipmentsubsidiesoftheGroup'sgovernmentsubsidies,thesegovernmentsubsidiesaregovernmentsubsidiesrelatedtoassets.
Governmentsubsidiesrelatedtoassetsarerecognizedasdeferredincome,andareincludedinthecurrentprofitsandlossesininstallmentsaccordingtothestraight-linemethodwithintheservicelifeoftherelatedassets.
（2）Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoincome
AstheGroup'sgovernmentsubsidies,suchasindustrydevelopmentsupportfunds,enterprisedevelopmentsupportfundsandtaxsubsidies,cannotformlong-termassets,thesegovernmentsubsidiesaregovernmentsubsidiesrelatedtoincome.
Governmentsubsidiesrelatedtoincome,ifusedtocompensaterelatedcostsandlossesinfutureperiods,willberecognizedasdeferredincome,andareincludedinthecurrentprofitsandlossesduringtheperiodwhenrelatedcostsorexpensesarerecognized;ifusedtocompensatetherelatedcostsandlossesthathaveoccurred,willbedirectlyincludedinthecurrentprofitsandlosses.
GovernmentsubsidiesrelatedtothedailyactivitiesoftheGroupareincludedinotherincomeaccordingtothenatureofeconomicbusiness.GovernmentsubsidiesunrelatedtothedailyactivitiesoftheGroupareincludedinnon-operatingincome.
Whentheconfirmedgovernmentsubsidyneedstobereturned,ifthereisarelevantdeferredrevenuebalance,therelevantdeferredincomebookbalancewillbeoffset,andtheexcesswillbeincludedinthecurrentprofitsandlosses;Ifthereisnorelevantdeferredincome,itwillbedirectlyincludedinthecurrentprofitsandlosses.
41.Deferredincometaxassets/Deferredincometaxliabilities
Incometaxexpensesincludecurrentincometaxanddeferredincometax.（
）Currentincometax
Onthebalancesheetdate,thecurrentincometaxliabilities(orassets)formedinthecurrentandpreviousperiodsshallbemeasuredbytheexpectedincometaxpayable(orrefunded)calculatedinaccordancewiththeprovisionsofthetaxlaw.（
）Deferredincometaxassetsanddeferredincometaxliabilities
Forthedifferencebetweenthebookvaluesofsomeassetsandliabilitiesandtheirtaxbasis,andthetemporarydifferencebetweenthebookvaluesofitemsthatarenotrecognizedasassetsandliabilitiesbutcanbedeterminedintaxbasisaccordingtotheprovisionsofthetaxlawandtaxbasis,thebalancesheetliabilitymethodisadoptedtorecognizedeferredincometaxassetsanddeferredincometaxliabilities.
Ingeneral,alltemporarydifferencesarerecognizedasrelateddeferredincometax.However,fordeductibletemporarydifferences,theGrouprecognizesrelateddeferredincometaxassetstotheextentthatitislikelytoobtaintaxableincometooffsetthedeductibletemporarydifferences.Inaddition,forthetemporarydifferencesrelatedtotheinitialrecognitionofgoodwillandtheinitialrecognitionofassetsorliabilitiesarisingfromtransactionsthatareneitherbusinessmergernoraffectaccountingprofitsandtaxableincome(ordeductiblelosses),therelevantdeferredincometaxassetsorliabilitiesarenotrecognized.
Fordeductiblelossesandtaxdeductionsthatcanbecarriedforwardtofutureyears,thecorrespondingdeferredincometaxassetsarerecognizedtotheextentthatitislikelytoobtainfuturetaxableincomefordeductingdeductiblelossesandtaxdeductions.
TheGrouprecognizesdeferredincometaxliabilitiesarisingfromtaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatedenterprisesandjointventures,unlesstheGroupcancontrolthetimewhenthetemporarydifferencesarereversed,andthetemporarydifferencesareunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferencesrelatedtotheinvestmentsofsubsidiaries,associatedenterprisesandjointventures,theGrouprecognizesthedeferredincometaxassetsonlywhenthetemporarydifferencesarelikelytobereversedintheforeseeablefutureandthetaxableincomeusedtooffsetthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.
Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredaccordingtotheapplicabletaxrateduringtheexpectedrecoveryofrelatedassetsorsettlementofrelatedliabilities.Exceptthatthecurrentincometaxanddeferredincometaxrelatedtotransactionsandeventsdirectlyincludedinothercomprehensiveincomeorshareholders'equityareincludedinothercomprehensiveincomeorshareholders'equity,andthedeferredincometaxarisingfrombusinessmergeradjuststhebookvalueofgoodwill,theremainingcurrentincometaxanddeferredincometaxexpensesorgainsareincludedinthecurrentprofitsandlosses.
Onthebalancesheetdate,thebookvalueofdeferredincometaxassetsshallberechecked.Ifitisprobablethatsufficienttaxableincomewillnotbeobtainedinthefuturetooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetsshallbewrittendown.Whensufficienttaxableincomeislikelytobeobtained,theamountwrittendownwillbereversed.
（3）Offsetofincometax
WhentheGrouphasthelegalrighttosettleonanetbasisandintendstosettleonanetbasisoracquireassetsandpayoffliabilitiesatthesametime,theGroup'scurrentincometaxassetsandcurrentincometaxliabilitiesarepresentedonanoffsetnetbasis.
Whenthetaxpayerhasthelegalrighttosettlethecurrentincometaxassetsandliabilitiesonanetbasis,andthedeferredincometaxassetsandliabilitiesarerelatedtotheincometaxleviedbythesametaxcollectiondepartmentonthesametaxpayerortodifferenttaxpayers,butinthefuture,thetaxpayersinvolvedintendtosettlethecurrentincometaxassetsandliabilitiesonanetbasis,oracquireassetsandpayoffliabilitiesatthesametime,theGroup'sdeferredincometaxassetsandliabilitiesarepresentedonanoffsetnetbasis.
42.Lease
Leasereferstoacontractinwhichthelessortransferstherighttouseassetstothelesseeforconsiderationwithinacertainperiodoftime.
Onthecommencementdateofthecontract,theGroupevaluateswhetherthecontractisaleaseorcontainsalease.Unlessthetermsandconditionsofthecontractchange,theGroupwillnotre-evaluatewhetherthecontractisaleaseorcontainsalease.
（1）TheGroupasthelessee1）SplitofleaseIfthecontractcontainsoneormoreleasedandnon-leasedpartsatthesametime,theGroupwillspliteachseparateleasedandnon-leasedpartandallocatethecontractconsiderationaccordingtotherelativeproportionofthesumoftheseparatepricesofeachleasedpartandthenon-leasedpart.2）Right-to-useassetsExceptforshort-termleases,theGrouprecognizestheright-to-useassetsonthestartdateofleaseterm.ThestartdateofleasetermreferstothestartdatewhenthelessorprovidestheleasedassetsfortheuseoftheGroup.Theright-to-useassetsisinitiallymeasuredaccordingtothecost.Thecostincludes:
Initialmeasurementamountofleaseliabilities;
Fortheleasepaymentpaidonorbeforethestartdateoftheleaseterm,ifthereareleaseincentives,deducttheamountrelatedtotheleaseincentivesenjoyed;·InitialdirectexpensesincurredbytheGroup;·TheestimatedcostsincurredbytheGroupfordismantlingandremovingtheleasedassets,restoringthepremiseswheretheleasedassetsarelocatedorrestoringtheleasedassetstothestateagreedintheleaseclauses.TheGroupreferstothedepreciationprovisionsinAccountingStandardsforBusinessEnterprisesNo.4-FixedAssets,andaccruesdepreciationforright-to-useassets.IftheGroupcanreasonablydeterminethatithasacquiredtheownershipoftheleasedassetsattheexpirationoftheleaseterm,theright-to-useassetswillbedepreciatedwithintheremainingservicelifeoftheleasedassets.Ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetscanbeobtainedattheexpirationoftheleaseterm,depreciationshallbeaccruedduringtheleasetermortheremainingservicelifeoftheleasedassets,whicheverisshorter.AccordingtotheAccountingStandardsforBusinessEnterprisesNo.8-ImpairmentofAssets,theGroupdetermineswhethertheright-to-useassetshavebeenimpaired,andcarriesoutaccountingtreatmentfortheidentifiedimpairmentlosses.3）LeaseliabilitiesExceptforshort-termleases,theGroupinitiallymeasurestheleaseliabilitiesonthestartdateofleasetermaccordingtothepresentvalueoftheunpaidleasepaymentonthatdate.Whencalculatingthepresentvalueoftheleasepayment,theGroupusestheleaseinterestrateasthediscountrate.Iftheleaseinterestratecannotbedetermined,theincrementalloaninterestrateisusedasthediscountrate.LeasepaymentreferstotheamountpaidbytheGrouptothelessorrelatedtotherighttousetheleasedassetsduringtheleaseterm,including:
·Fixedpaymentamountandsubstantialfixedpaymentamount.Ifthereisleaseincentive,therelevantamountofleaseincentiveshallbededucted;·Variableleasepaymentamountdependingonindexorratio;·TheexercisepriceoftheoptionreasonablydeterminedbytheGrouptobeexercised;·TheamounttobepaidtoterminatetheleasewhentheleasetermreflectsthattheGroupwillexercisetheoption;·TheamountexpectedtobepaidaccordingtotheresidualvalueoftheguaranteeprovidedbytheGroup.Afterthestartoftheleaseterm,theGroupcalculatestheinterestexpenseoftheleaseliabilitiesineachperiodoftheleasetermatafixedperiodicinterestrate,andincludesitinthecurrentprofitsandlossesorrelatedassetcosts.Afterthecommencementoftheleaseterm,ifthefollowingcircumstancesoccur,theGroupwillre-measuretheleaseliabilitiesandadjustthecorrespondingright-to-useassets.Ifthebookvalueoftheright-to-useassetshasbeenreducedtozero,buttheleaseliabilitiesstillneedtobefurtherreduced,theGroupwillincludethedifferenceinthecurrentprofitsandlosses:
·Iftheleasetermchangesortheevaluationresultofthepurchaseoptionchanges,theGroupwillre-measuretheleaseliabilitiesaccordingtothepresentvaluecalculatedbythechangedleasepaymentamountandthereviseddiscountrate;·Iftheestimatedpayableamountaccordingtotheguaranteeresidualvalueortheindexorproportionusedto
determinetheleasepaymentchanges,theGroupwillre-measuretheleaseliabilitiesaccordingtothepresentvaluecalculatedbythechangedleasepaymentamountandtheoriginaldiscountrate.4）Short-termleaseFortheshort-termleaseofsomefactoriesandsomerentedwarehouses,theGroupchoosesnottorecognizetheright-to-useassetsandleaseliabilities.Short-termleasereferstotheleasethatdoesnotexceed12monthsanddoesnotincludetheoptiontopurchaseonthestartdateoftheleaseterm.TheGroupwillchargetheleasepaymentforshort-termleasetothecurrentprofitsandlossesorrelatedassetcostsinaccordancewiththestraight-linemethodineachperiodoftheleaseterm.5）LeasechangeIftheleasechangesandthefollowingconditionsaremetatthesametime,theGroupwillcarryoutaccountingtreatmentontheleasechangeasaseparatelease:
·Theleasechangeexpandstheleasescopebyincreasingtherighttouseoneormoreleasedassets;·Theincreasedconsiderationisequivalenttotheindividualpriceoftheexpandedpartoftheleasescopeadjustedaccordingtothecontractsituation.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theGroupwillre-allocatetheconsiderationofthechangedcontract,re-determinetheleaseterm,andre-measuretheleaseliabilitiesaccordingtothepresentvaluecalculatedbythechangedleasepaymentandthereviseddiscountrate.Iftheleasescopeisreducedortheleasetermisshortenedduetoleasechange,theGroupshallcorrespondinglyreducethebookvalueoftheright-to-useassets,andincludetherelatedgainsorlossesofpartialorfullterminationofleaseinthecurrentprofitsandlosses.Ifotherleasechangesleadtothere-measurementofleaseliabilities,theGroupwilladjustthebookvalueoftheright-to-useassetsaccordingly.6）Policy-relatedrentconcessionFortherentconcessionsreachedbetweentheGroupandthelessorontheexistingleasecontract,suchasrentreduction,deferredpayment,etc.,andthefollowingconditionsaremetatthesametime,theGroupchoosestoadoptthesimplifiedmethodintheaccountingtreatmentprovisionsofrelevantpolicyrentreduction:
(1)Theleaseconsiderationafterconcessionisreducedorbasicallyunchangedcomparedwiththatbeforeconcession;
(2)Aftercomprehensiveconsiderationofqualitativeandquantitativefactors,itisdeterminedthatotherclausesandconditionsoftheleasehavenotchangedsignificantly.TheGroupcontinuestocalculatetheinterestexpenseofleaseliabilitiesatthesamediscountrateasbeforeconcessionandincludesitinthecurrentprofitsandlosses,andcontinuestocarryoutsubsequentmeasurementsuchasdepreciationofright-to-useassetsaccordingtothesamemethodasbeforeconcession.Incaseofrentreduction,theGroupregardsthereducedrentasavariableleasepaymentamount,andwhentheoriginalrentpaymentobligationisterminatedbyreachingaconcessionagreement,therelevantassetcostsorexpensesareoffsetbythediscountedamountatthediscountratebeforediscountingorconcession,andtheleaseliabilitiesareadjustedaccordingly;Iftherentpaymentisdelayed,theGroupwilloffsettheleaseliabilitiesrecognizedinthepreviousperiodwhenactuallypaying.Forshort-termleaseswithsimplifiedtreatment,theGroupcontinuestoincludetheoriginalcontractrentintherelevantassetcostorexpenseinthesamewayasbeforeconcession.Incaseofrentreduction,theGroup
regardsthereducedrentasavariableleasepayment,andoffsetsthecostorexpenseofrelatedassetsduringthereductionperiod;Ifthepaymentofrentisdelayed,theGroupwillrecognizetherentpayableaspayableintheoriginalpaymentperiod,andoffsetthepayablerecognizedinthepreviousperiodwhenactuallypaying.
（
）TheGroupasthelessor1）SplitofleaseIfthecontractcontainsbothleasedandnon-leasedparts,theGroupwillallocatethecontractconsiderationaccordingtotheprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.14-Revenuesontransactionpriceallocation,andthebasisofallocationistheseparatepricesoftheleasedpartandthenon-leasedpart.
）ClassificationofleaseAleasethatessentiallytransfersalmostalltherisksandrewardsrelatedtotheownershipoftheleasedassetsisafinanciallease.Otherleasesexceptfinancingleaseareoperatingleases.
①TheGroupasalessorrecordstheoperatingleasebusinessDuringeachperiodoftheleaseterm,theGroupadoptsthestraight-linemethodtorecognizetheleasereceiptsfromoperatingleaseasrentalincome.TheinitialdirectexpensesincurredbytheGroupinconnectionwithoperatingleasesarecapitalizedwhenincurred,apportionedonthesamebasisasrentalincomerecognitionduringtheleaseterm,andincludedincurrentprofitsandlossesininstallments.ThevariableleasereceiptsrelatedtooperatingleasesobtainedbytheGroup,whicharenotincludedintheleasereceipts,areincludedinthecurrentprofitsandlosseswhenactuallyincurred.
（3）Leasechange
Iftheoperatingleaseischanged,theGroupwillcarryoutaccountingtreatmentonitasanewleasefromtheeffectivedateofthechange,andtheleasereceiptsreceivedinadvanceorreceivablerelatedtotheleasebeforethechangewillberegardedasthereceiptsofthenewlease.
（4）Policy-relatedrentconcession
Fortherentconcessionsreachedbetweenthelessorandthelessorontheexistingleasecontract,suchasrentreduction,deferredpayment,etc.,andthefollowingconditionsaremetatthesametime,theGroupchoosestoadoptthesimplifiedmethodintheaccountingtreatmentprovisionsofrelevantpolicyrentreduction:
(1)Theleaseconsiderationafterconcessionisreducedorbasicallyunchangedcomparedwiththatbeforeconcession;
(2)Aftercomprehensiveconsiderationofqualitativeandquantitativefactors,itisdeterminedthatotherclausesandconditionsoftheleasehavenotchangedsignificantly.
FortheoperatingleaseoftheGroup'sownpropertyleasecontract,theGroupcontinuestorecognizetheoriginalcontractrentasleaseincomeinthesamewayasbeforeconcession.Incaseofrentreduction,theGroupregardsthereducedrentasavariableleasepayment,andreducestheleaseincomeduringthereductionperiod;Iftherentcollectionisdelayed,theGroupwillrecognizetherentthatshouldbecollectedasreceivablesintheoriginalcollectionperiod,andoffsetthereceivablesrecognizedinthepreviousperiodwhenitisactuallyreceived.
43.OtherimportantaccountingpoliciesandaccountingestimatesNone
44.Changeofmainaccountingpoliciesandestimations
(1)Changeofmainaccountingpolicies
?□Applicable√Applicable
（2）Changesinaccountingestimates
□Applicable√Applicable
（3）Theinformationoftheadjustingitemsrelatedtothefinancialstatementsatthebeginningoftheyearoffirstimplementationduetothefirstimplementationofnewaccountingstandardsfrom2023.
□Applicable√Applicable
45.Other
NoneVI.Taxation
1.Maincategoriesandratesoftaxes
| Taxcategory | Taxbasis | Taxrate |
| VAT | Thebalanceafterdeductingthedeductibleinputtaxfromtheoutputtax;Thetaxcalculationmethodof"exemption,offsetandrefund"isappliedtosalesofexportproducts | Theoutputtaxfordomesticsalesiscalculatedaccordingto13%,9%,6%and5%ofthesalesamountcalculatedaccordingtorelevanttaxregulations,andthetaxrebaterateforexportproductsis13% |
| Urbanmaintenanceandconstructiontax | Payableturnovertax | 7% |
| Businessincometax | Taxableamountofincome | 25%,20%,15%,8.25% |
| Surchargeforeducation | Payableturnovertax | 3% |
| Surchargeforlocaleducation | Payableturnovertax | 2% |
| Propertytax | Residualvalueorrentalincomeafterdeducting30%fromtheoriginalvalueofpropertyatonetime | 1.2%or12% |
Thedisclosurestatementiftherearetaxpayerswithdifferententerpriseincometaxrates
| Nameoftaxpayer | Incometaxrate |
| TheCompany | 25% |
| ShenzhenShenfangPropertyManagementCo.,Ltd. | 25% |
| ShenzhenShengjinlianTechnologyCo.,Ltd. | 25% |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 20%(Note1) |
| ShenzhenLisiIndustrialCo.,Ltd. | 20%(Note1) |
| ShenzhenShenfangSungangPropertyManagementCo.,Ltd. | 20%(Note1) |
| ShenzhenHuaqiangHotel | 20%(Note1) |
| Shengtou（HK）Co.,Ltd. | 8.25%(Note2) |
| ShenzhenSAPOPhotoelectricCo.,Ltd. | 15%(Note3) |
Note1:See"TaxPreferences"inNotes2(2)fordetails.Note2:AccordingtotheTaxOrdinanceofHongKong,HongKongcompaniesappliedthetwo-tiersystemofprofitstax,andthefirstprofitofHK$2millionwillbecalculatedandpaidat8.25%,andtheprofitsgeneratedthereafterwillbecalculatedat16.5%.
Note3:See"TaxPreference"inNotes,2(1)fordetails.
2.Taxpreference
(1)In2022,SAPOPhotoelectric,asubsidiaryoftheCompany,wasjointlyrecognizedasahigh-techenterprisebyShenzhenScienceandTechnologyInnovationCommittee,ShenzhenFinanceBureauandShenzhenTaxService,StateTaxationAdministration,respectively,withacertificationperiodof3years,andthecertificatenumbersofGR202244204504respectively.Itshallapplythepreferentialtaxpoliciesforhigh-techenterpriseswithinthreeyearsafteritisrecognizedasahigh-techenterprise,andpayenterpriseincometaxattherateof15%afterbeingfiledbythecompetenttaxbureau.
（2）ThesubsidiariesoftheCompany,BeautyCenturyCompany,ShenzhenHuaqiangHotelCo.,Ltd,
ShenzhenLisiIndustrialDevelopmentCo.,Ltd,ShenzhenShenfangSungangPropertyManagementCo.,Ltd,andShenzhenShenfangPropertyManagementCo.,Ltdareeligiblesmallandmicro-profitenterprises.AccordingtotheNoticeontheImplementationoftheInclusiveTaxExemptionandReductionPolicyforSmallandMicroEnterprises(No.13[2019]CaiShui)andtheAnnouncementonFurtherImplementingthePreferentialIncomeTaxPolicyforSmallandMicroEnterprises(AccordingtotheNo.132022AnnouncementoftheStateAdministrationofTaxationoftheMinistryofFinance),theAnnouncementoftheStateAdministrationofTaxationoftheMinistryofFinanceonthePreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualIndustrialandCommercialEnterprises(TheNo.62023AnnouncementoftheStateAdministrationofTaxationoftheMinistryofFinance)andtheAnnouncementoftheStateAdministrationofTaxationontheImplementationofthePreferentialIncomeTaxPoliciesforSmallandMicro-ProfitEnterprises(TheNo.6[2023]AnnouncementofStateAdministrationofTaxation),theportionoftaxableincomenotexceedingRMB1millioninthecurrentyearshallbereducedto25%astaxableincomeandsubjecttoenterpriseincometaxatarateof20%.;FortheportionoftaxableincomeexceedingRMB1millionbutnotexceedingRMB3millioninthecurrentyear,itshallbereducedto50%astaxableincomeandsubjecttoenterpriseincometaxatarateof20%.
（3）AccordingtotherelevantprovisionsoftheNoticeoftheGeneralAdministrationofCustomsandtheStateAdministrationofTaxationoftheMinistryofFinanceontheImportTaxPoliciesforSupportingtheDevelopmentoftheNewDisplayDeviceIndustry(No.19[2021]CaiShui),SAPOPhotoelectric,asubsidiaryoftheCompany,meetstherelevantconditionsandenjoysthepolicyofexemptionfromimporttariffsforrelatedproductsfromJanuary1,2021toDecember31,2030.
（
）ThesubsidiariesoftheCompany,ShenzhenBeautyCenturyCompany,ShenzhenHuaqiangHotelCo.,Ltd,ShenzhenLisiIndustrialDevelopmentCo.,Ltd,ShenzhenShenfangSungangPropertyManagementCo.,Ltd,andShenzhenShenfangPropertyManagementCo.,Ltdareeligiblesmallandmicro-profitenterprises.InaccordancewiththerelevantprovisionsoftheAnnouncementoftheStateAdministrationofTaxationoftheMinistryofFinanceonFurtherImplementingthe"SixTaxesandTwoFees"ExemptionandReductionPolicyforSmallandMicroEnterprises(AnnouncementNo.10of2022oftheStateAdministrationofTaxationoftheMinistryofFinance),FromJanuary1,2022toDecember31,2024,thesmall-scalevalue-addedtaxtaxpayers,smallandmicro-profitenterprisesandindividualindustrialandcommercialenterprisescanreduceresourcetax,
urbanmaintenanceandconstructiontax,realestatetax,urbanlandusetax,stampduty(excludingstampdutyonsecuritiestransactions),cultivatedlandoccupationtaxandeducationfeesurcharge,andlocaleducationsurchargewithinthetaxrangeof50%.（
）AccordingtotheNoticeoftheMinistryofFinance,StateAdministrationofTaxation,MinistryofHumanResourcesandSocialSecurity,andPovertyAlleviationOfficeoftheStateCouncilonTaxPoliciestoFurtherSupportandPromotetheEntrepreneurshipandEmploymentofKeyGroups(No.22[2019]CaiShui),fromthemonthofsigningthelaborcontractandpayingsocialinsurance,thevalue-addedtax,urbanmaintenanceandconstructiontax,educationfeesurcharge,localeducationsurchargeandenterpriseincometaxpreferentialwillbedeductedaccordingtotheactualnumberofrecruitswithin3yearsinfixedamount,andthefixedamountstandardis7,800yuanperpersonperyear.Thetaxcalculationbasisforurbanmaintenanceandconstructiontax,educationfeesurchargeandlocaleducationsurchargeistheVATpayablebeforeenjoyingthispreferentialtaxpolicy.SAPOPhotoelectric,asubsidiaryoftheCompany,appliestheabovepreferentialtaxpolicies.
3.Other
NoneVII.NotesonmajoritemsinconsolidatedfinancialstatementsoftheCompany
1.Monetaryfunds
InRMB
| Items | Closingbalance | Openingbalance |
| Cashathand | 2,231.43 | 3,980.56 |
| Bankdeposit | 345,697,680.49 | 874,795,302.32 |
| Othermonetaryfunds | 270,542,231.07 | 116,990,685.31 |
| Total | 616,242,142.99 | 991,789,968.19 |
| Including:Thetotalamountofdepositabroad | 0.00 | 0.00 |
| Totalamountofmoneylimitedtouse,suchasmortgage,pledgeorfreeze | 270,542,231.07 | 116,990,685.31 |
Othernote
BankdepositsincludeinterestoncurrentdepositsofRMB16,175.93,OthermonetaryfundsincludetheinterestoftimedepositofRMB226,666.67.
Note2:OnJune30,2023,theCompany'sothermonetaryfundsincludedtheBankDraftofRMB4,595,637.31,RMB1,209,498.75,andtheprincipalandinterestoftimedepositcertificatesdueformorethanthreemonthsfromthedateofpurchaseofRMB265,946,593.76.
2.Transactionalfinancialassets
InRMB
| Items | Balanceattheendofthisyear | Balanceattheendoflastyear |
| Financialassetsmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses | 613,554,063.16 | 319,605,448.44 |
| Including | ||
| moneyfundsandstructureddeposits | 613,554,063.16 | 319,605,448.44 |
| Including |
| Total | 613,554,063.16 | 319,605,448.44 |
3.Derivativefinancialassets
None
4.Notesreceivable
(1)Notesreceivablelistedbycategory
InRMB
| Items | Balanceattheendofthisyear | Balanceattheendoflastyear |
| Bankacceptance | 56,718,590.38 | 74,619,100.26 |
| Total | 56,718,590.38 | 74,619,100.26 |
InRMB
| Category | Balanceattheendofthisyear | Balanceattheendoflastyear | ||||||||
| BookBalance | Baddebtprovision | Bookvalue | BookBalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Ofwhich： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 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： | ||||||||||
| .BankacceptanceBill | 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 |
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√Notapplicable
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：NoneOfwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod
□Applicable√Notapplicable
（3）Notesreceivablepledgedbythecompanyattheendoftheperiod
None
（4）AccountsreceivablefinancingendorsedordiscountedbytheCompanyattheendoftheperiodandnotexpiredyetonthedateofbalancesheet
InRMB
| Items | Amountderecognizedattheendoftheperiod | Amountnotyetderecognizedattheendoftheperiod |
| Bankacceptancebill | 0.00 | 40,032,610.22 |
| Commercialacceptance | 0.00 | 0.00 |
| Total | 0.00 | 40,032,610.22 |
（5）NotestransferredtoaccountsreceivablebecausedrawerofthenotesfailstoexecutedthecontractoragreementNone
（6）Theactualwrite-offaccountsreceivableNone
5.Accountreceivable
(1)Classificationaccountreceivables.
InRMB
| Category | Amountinyear-end | Amountinyear-begin | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrualofbaddebtprovisionbysingleitem | 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 |
| Accrualofbaddebtprovisionbyportfolio | 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： | ||||||||||
| Portfolio1 | 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 |
| Portfolio2 | 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 |
Accrualofbaddebtprovisionbysingleitem:
InRMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportion | Reason | |
| Client1 | 20,940,304.25 | 4,900,031.19 | 23.40% | Expectedhighriskofrecovery |
| Client2 | 19,608,301.25 | 4,588,342.49 | 23.40% | Expectedhighriskofrecovery |
| Client3 | 8,944,810.20 | 2,344,434.75 | 26.21% | Expectedhighriskofrecovery |
| Client4 | 2,797,016.81 | 2,797,016.81 | 100.00% | Expectedtobeuncollectible |
| Client5 | 2,701,052.56 | 810,315.77 | 30.00% | Expectedhighriskofrecovery |
| Client6 | 1,697,437.81 | 1,697,437.81 | 100.00% | Expectedtobeuncollectible |
| Client7 | 1,609,101.31 | 482,730.39 | 30.00% | Expectedhighriskofrecovery |
| Client8 | 1,576,585.72 | 1,576,585.72 | 100.00% | Expectedtobeuncollectible |
| Client9 | 1,298,965.36 | 1,298,965.36 | 100.00% | Expectedtobeuncollectible |
| Subtotal | 14,685,600.76 | 9,916,495.67 | 67.53% | |
| Total | 75,859,176.03 | 30,412,355.96 |
Accrualofbaddebtprovisionbyportfolio:
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Portfolio1 | 807,472,529.45 | 24,798,245.92 | 3.07% |
| Portfolio2 | 28,323,617.64 | 1,536,992.28 | 5.43% |
| Total | 835,796,147.09 | 26,335,238.20 | |
Note：
Creditlossprovisionbyitem:ifthereisevidencethatthecreditriskofasinglereceivableisrelativelyhigh,creditlossprovisionshallbeaccruedseparatelyforthereceivable.Creditlossprovisionismadeaccordingtotheportfolioofcreditriskcharacteristics:exceptforreceivableswithcreditimpairmentloss,theGroupusesimpairmentmatrixtoevaluatetheexpectedcreditlossofaccountsreceivableformedbyoperatingincomeonthebasisofportfolio.Accordingtotheriskcharacteristics,theGroupdividescustomersintoPortfolio1andPortfolio2,whichrespectivelyinvolvecustomerswiththesameriskcharacteristics.Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 897,992,300.67 |
| 1-2years | 779,798.03 |
| 2-3years | 0.00 |
| Over3years | 12,883,224.42 |
| 3-4years | 454,035.81 |
| Over5years | 12,429,188.61 |
| Total | 911,655,323.12 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbyportfolio: | 19,237,537.09 | 7,107,304.24 | 9,603.13 | 0.00 | 0.00 | 26,335,238.20 |
| Accrualofbaddebtprovisionbysingleitem: | 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 |
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:None
(3)Theactualwrite-offaccountsreceivableNone
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Balanceinyear-end | Proportion(%) | Baddebtprovision |
| Client1 | 168,740,368.13 | 18.51% | 5,214,077.39 |
| Client2 | 92,294,917.91 | 10.12% | 2,851,912.96 |
| Client3 | 85,996,566.25 | 9.43% | 2,657,293.90 |
| Client4 | 80,398,103.20 | 8.82% | 2,484,301.39 |
| Client5 | 69,843,457.35 | 7.66% | 2,158,162.83 |
| Total | 497,273,412.84 | 54.54% |
（5）AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone
6.Receivablefinancing
InRMB
| Items | Closingbalance | Openingbalance |
| Bankacceptancebill | 22,863,088.36 | 54,413,796.91 |
| Total | 22,863,088.36 | 54,413,796.91 |
Changesincurrentperiodandfairvalueofreceivablesfinancing
□Applicable√NotapplicableRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableOthernote
OnJune30,2023,theendorsedordiscountedunexpiredbankacceptancebillsthattheGroupderecognizedamountedtoRMB54,533,024.39.Forthebankacceptancebillsoflargestate-ownedcommercialbankswithhighcreditratingandlistednationaljoint-stockcommercialbanks,theGroupbelievesthataftertheendorsementordiscountofsuchbankacceptancebills,therelatedmainrisksandrewardshavebeentransferredtothecounterparty,andsuchendorsedordiscountedunexpiredbankacceptancebillsshouldbederecognized.TheCompanybelievesthattheacceptancebankcreditratingofthebankacceptancebillsheldbyitishigh,withnosignificantcreditrisk,thereforenocreditlossprovisionhasbeenmade.
7.Prepayments
(1)Listbyaginganalysis:
InRMB
| Aging | Balanceattheendofthisyear | Balanceattheendoflastyear |
| Amount | Proportion% | Amount | Proportion% | |
| Within1year | 24,263,130.32 | 81.81% | 16,690,766.68 | 90.75% |
| 1-2years | 5,395,750.80 | 18.19% | 1,700,677.99 | 9.25% |
| Total | 29,658,881.12 | 18,391,444.67 |
Note：
OnJune30,2023,theGrouphadnoprepaymentswithanageofmorethanoneyearandasignificantamount.
(2)Prepaymentsofthetopfiveendingbalancesbyprepaymentobject
Thetotalamountofthetopfiveyear-endbalancescollectedbyprepaymentobjectsisRMB21,692,691.03,accountingfor73.14%ofthetotalyear-endbalancesofprepayments.
8.Otherreceivables
InRMB
| Items | Balanceattheendofthisyear | Balanceattheendoflastyear |
| Otherreceivable | 3,393,141.86 | 10,585,975.38 |
| Total | 3,393,141.86 | 10,585,975.38 |
（1）Interestreceivable1）Classificationinterestreceivables.
None
2)SignificantoverdueinterestNone
）Bad-debtprovision
?Applicable□Notapplicable
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
(2)Dividendreceivable
1)DividendreceivableNone
2)Significantdividendreceivableagedover1yearNone3）Bad-debtprovision
□Applicable√Notapplicable
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassifiedbythenatureofaccounts
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| Unitaccount | 16,811,262.94 | 16,330,801.03 |
| Deposit | 2,186,800.03 | 2,801,300.29 |
| Reservefundandstaffloans | 889,740.57 | 580,028.97 |
| Exportrebate | 709,028.56 | 1,023,715.60 |
| Other | 463,070.29 | 1,688,371.65 |
| Freezefunds | 347,284.99 | 6,559,327.26 |
| Total | 21,407,187.38 | 28,983,544.80 |
2）)Accrualofcreditlossprovision
InRMB
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2023 | 494,588.28 | 198,890.09 | 17,704,091.05 | 18,397,569.42 |
| BalanceasatJanuary1,2023incurrent | ||||
| ProvisioninCurrentYear | 38,815.94 | 14,108.85 | 11,798.65 | 64,723.44 |
| ReversalinCurrentYear | -448,247.34 | -448,247.34 | ||
| Balanceasat30June2023 | 85,156.88 | 212,998.94 | 17,715,889.70 | 18,014,045.52 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 2,038,042.86 |
| 1-2years | 808,278.98 |
| 2-3years | 362,049.11 |
| Over3years | 18,198,816.43 |
| 3-4years | 4,200.00 |
| 4-5years | 124,799.10 |
| Over5years | 18,069,817.33 |
| Total | 21,407,187.38 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbysingleitem | 17,188,131.90 | 17,188,131.90 | ||||
| Accrualofbaddebtprovisionbyportfolio | 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 |
Wherethecurrentbaddebtsbackorrecoversignificantamounts:None
）Otheraccountreceivablesactuallycancelafterwrite-offNone5）Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance |
| Client1 | Unitaccount | 980,461.06 | Over5years | 4.58% | 980,461.06 |
| Client2 | Unitaccount | 709,028.48 | Over5years | 3.31% | 709,028.48 |
| Client3 | Unitaccount | 509,611.25 | Over5years | 2.38% | 272,642.02 |
| Client4 | Unitaccount | 500,000.00 | 1-2years | 2.34% | 53,500.00 |
| Client5 | Unitaccount | 294,983.04 | 2-3years | 1.38% | 90,744.16 |
| Total | 2,994,083.83 | 13.99% | 2,106,375.72 |
(6)AccountsreceivableinvolvedwithgovernmentsubsidiesNone
(7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableNone
9.InventoriesWhetherthecompanyneedtocomplywiththedisclosurerequirementsoftherealestateindustryNo
（1）CategoryofInventory
InRMB
| Items | Closingbookbalance | Openingbookbalance | ||||
| Bookbalance | Provisionforinventoryimpairment | Bookvalue | Bookbalance | Provisionforinventoryimpairment | Bookvalue | |
| Rawmaterials | 371,378,015.36 | 35,514,179.23 | 335,863,836.13 | 291,062,812.80 | 48,809,720.50 | 242,253,092.30 |
| Processingproducts | 254,572,639.52 | 43,363,067.47 | 211,209,572.05 | 258,881,779.59 | 41,882,202.00 | 216,999,577.59 |
| Merchandiseinventory | 196,732,911.54 | 87,994,399.99 | 108,738,511.55 | 183,723,885.96 | 92,381,073.63 | 91,342,812.33 |
| Commissionedmaterials | 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）Inventoryfallingpricereserves
InRMB
| Items | Openingbalance | Increasedincurrentperiod | Decreasedincurrentperiod | Closingbalance | ||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Rawmaterials | 48,809,720.50 | -13,295,541.27 | 35,514,179.23 | |||
| Processingproducts | 41,882,202.00 | 12,852,877.82 | 11,372,012.35 | 43,363,067.47 | ||
| Merchandiseinventory | 92,381,073.63 | 36,827,926.45 | 41,214,600.09 | 87,994,399.99 | ||
| Commissionedmaterials | 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)DescriptionofTheclosingbalanceofinventoriescontaintheamountofborrowingcostscapitalizedNone
（4）DescriptionofamortizationamountofcontractperformancecostinthecurrentperiodNone
10.ContractassetsNone
11.Assetsdividedasheld-to-soldNone
12.Non-currentassetsduewithin1yearNone
13.Othercurrentassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Receivablereturncost | 32,391,512.15 | 43,446,472.67 |
| Advancepaymentofincometax | 17,271,913.84 | 26,089,058.57 |
| Total | 49,663,425.99 | 69,535,531.24 |
14.Creditor'srightinvestmentNone
15.Othercreditor'srightsinvestmentNone
16.Long-termaccountsreceivable
(1)Listoflong-termaccountsreceivableNone
(2)Long-termaccountsreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
（3）Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementoflong-termaccountsreceivableNone
17.Long-termequityinvestment
InRMB
| Investees | Openingbalance | Increase/decrease | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Othercomprehensiveincome | Changesinotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||||
| I.Jointventures | |||||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,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.AffiliatedCompany | |||||||||||
| YehuiInternationalCo.,Ltd. | 1,869,767.43 | -43,637.75 | 54,950.70 | 1,881,080.38 | |||||||
| ShenzhenChanglianfaPrinting&dyeingCompany | 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.Otherequityinstrumentsinvestment
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Financialassetsdesignatedasfairvalueandwhosechangesareincludedinothercomprehensiveincome | 167,678,283.27 | 167,678,283.27 |
| Total | 167,678,283.27 | 167,678,283.27 |
(2)Investmentinnon-transactionalequityinstruments
InRMB
| Items | Dividendincomerecognizedthisyear | Cumulativegain/loss | Cumulativeloss | Amounttransferredfromothercomprehensiveincometoretainedincomethisyear | Reasondesignatedasbeingmeasuredatfairvalueandchangebeingincludedinothercomprehensiveincome | Reasonsfortransferringfromothercomprehensiveincometoretainedincomethisyear |
| ShenzhenDailishiUnderwearCo.,Ltd. | 550,000.00 | 21,627,143.74 | PlannedtobeheldbytheGroupforalongtime. | |||
| UnionDevelopmentCo.,Ltd. | 208,000.00 | 123,361,939.39 | PlannedtobeheldbytheGroupforalongtime. | |||
| JintianIndustry（Group）Co.,Ltd. | 14,831,681.50 | PlannedtobeheldbytheGroupforalongtime. | ||||
| ShenzhenXinfangKnittingCo.,Ltd. | 148,000.00 | 1,851,903.00 | PlannedtobeheldbytheGroupforalongtime. | |||
| ShenzhenSouthTextileCo.,Ltd. | 14,559,440.88 | PlannedtobeheldbytheGroupforalongtime. |
19.Othernon-currentfinancialassets
None
20.Investmentrealestate
(1)Investmentrealestateadoptedthecostmeasurementmode
√Applicable□Notapplicable
InRMB
| Items | House,Building | Landuseright | Constructioninprocess | Total |
| I.Originalprice | ||||
| 1.Balanceatperiod-beginning | 328,128,815.41 | 328,128,815.41 | ||
| 2.Increaseinthecurrentperiod | 185,000.00 | 185,000.00 | ||
| (1)Purchase | 185,000.00 | 185,000.00 | ||
| （2）Inventory\Fixedassets\Transferredfromconstructioninprogress |
(3)IncreasedofEnterpriseCombination
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 328,313,815.41 | 328,313,815.41 | |
| II.Accumulatedamortization | |||
| 1.Openingbalance | 201,812,980.65 | 201,812,980.65 | |
| 2.Increasedamountoftheperiod | 4,528,957.27 | 4,528,957.27 | |
| (1)Withdrawal | 4,528,957.27 | 4,528,957.27 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 206,341,937.92 | 206,341,937.92 | |
| III.Impairmentprovision | |||
| 1.Balanceatperiod-beginning | |||
| 2.Increasedamountoftheperiod | |||
| (1)Withdrawal |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | |||
| IV.Bookvalue | |||
| 1.Bookvalueatperiod-end | 121,971,877.49 | 121,971,877.49 | |
| 2.Bookvalueatperiod-beginning | 126,315,834.76 | 126,315,834.76 |
(2)Investmentpropertyadoptedfairvaluemeasurementmode
□Applicable√Notapplicable
(3)Investmentrealestatewithoutcertificateofownership
InRMB
| Items | Bookbalance | Reason |
| HousesandBuilding | 8,032,003.12 | Unabletoapplyforwarrantsduetohistoricalreasons |
21.Fixedassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Fixedassets | 2,133,290,574.66 | 2,240,221,656.36 |
| Total | 2,133,290,574.66 | 2,240,221,656.36 |
(1)Listoffixedassets
InRMB
| Items | Houses&buildings | Machineryequipment | Transportations | Otherequipment | Total |
| I.Originalprice | |||||
| 1.Openingbalance | 742,709,971.36 | 2,655,871,126.91 | 15,875,027.26 | 50,483,511.70 | 3,464,939,637.23 |
| 2.Increasedamountoftheperiod | 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)Transferredfromconstructioninprogress | 4,037,169.66 | 277,876.10 | 4,315,045.76 | ||
| (3)IncreasedofEnterpriseCombination |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | 28,887.08 | 337,730.89 | 366,617.97 | ||
| （1）Disposal | 28,887.08 | 337,730.89 | 366,617.97 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 743,092,852.85 | 2,660,557,058.78 | 16,794,071.51 | 50,693,984.75 | 3,471,137,967.89 |
| II.Accumulateddepreciation | |||||
| 1.Openingbalance | 173,190,869.37 | 986,203,419.91 | 5,871,266.55 | 34,223,428.40 | 1,199,488,984.23 |
| 2.Increasedamountoftheperiod | 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.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | 27,731.59 | 324,221.70 | 351,953.29 | ||
| （1）Disposal | 27,731.59 | 324,221.70 | 351,953.29 |
4.Closingbalance
| 4.Closingbalance | 185,173,534.86 | 1,083,233,474.48 | 6,864,741.91 | 37,346,906.88 | 1,312,618,658.13 |
| III.Impairmentprovision | |||||
| 1.Openingbalance | 25,120,608.21 | 108,388.43 | 25,228,996.64 | ||
| 2.Increaseinthereportingperiod | |||||
| （1）Withdrawal |
3.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | 261.54 | 261.54 | |
| （1）Disposal | 261.54 | 261.54 |
4.Closingbalance
| 4.Closingbalance | 25,120,608.21 | 108,126.89 | 25,228,735.10 | ||
| IV.Bookvalue | |||||
| 1.Bookvalueoftheperiod-end | 557,919,317.99 | 1,552,202,976.09 | 9,929,329.60 | 13,238,950.98 | 2,133,290,574.66 |
| 2.Bookvalueoftheperiod-begin | 569,519,101.99 | 1,644,547,098.79 | 10,003,760.71 | 16,151,694.87 | 2,240,221,656.36 |
(2)FixedassetstemporarilyidledNone
(3)FixedassetsrentedbyfinanceleasesNone
(4)FixedassetswithoutcertificateoftitlecompletedNone
（5）Liquidationoffixedassets
None
22.Constructioninprogress
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Constructioninprogress | 36,543,522.56 | 38,061,619.60 |
| Total | 36,543,522.56 | 38,061,619.60 |
(1)Listofconstructioninprogress
InRMB
| Items | Year-endbalance | Year-beginningbalance | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
| Installationofmachinesandequipment | 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）ChangesofsignificantconstructioninprogressNone
（3）ImpairmentprovisionofconstructionprojectsNone
（4）EngineeringmaterialNone
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredatcostmethods
□Applicable√Notapplicable
(2)Productivebiologicalassetsmeasuredatfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Righttouseassets
InRMB
| Items | HouseandBuilding | Total |
| 1.Balanceatyearbeginning | ||
| 4.Year-endbalance | 28,914,047.83 | 28,914,047.83 |
| 2.Increaseatthisperiod | 5,893,024.28 | 5,893,024.28 |
| Newlyinversed | 5,893,024.28 | 5,893,024.28 |
| 3.Decreasedamountoftheperiod | 0.00 | 0.00 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 34,807,072.11 | 34,807,072.11 |
| II.Accumulateddepreciation | ||
| 1.Openingbalance | 13,548,653.95 | 13,548,653.95 |
| 2.Increasedamountoftheperiod | 4,577,501.46 | 4,577,501.46 |
| (1)Withdrawal | 4,577,501.46 | 4,577,501.46 |
3.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | ||
| （1）Disposal | 0.00 | 0.00 |
4.Closingbalance
| 4.Closingbalance | 18,126,155.41 | 18,126,155.41 |
| III.Impairmentprovision | ||
| 1.Openingbalance | 0.00 | 0.00 |
| 2.Increaseinthereportingperiod | 0.00 | 0.00 |
| （1）Withdrawal | 0.00 | 0.00 |
3.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | ||
| （1）Disposal | 0.00 | 0.00 |
4.Closingbalance
| 4.Closingbalance | 0.00 | 0.00 |
| IV.Bookvalue | ||
| 1.Bookvalueoftheperiod-end | 16,680,916.70 | 16,680,916.70 |
| 2.Bookvalueoftheperiod-begin | 15,365,393.88 | 15,365,393.88 |
26.Intangibleassets
(1)Information
InRMB
| Items | Landuseright | Patentright | Non-proprietary | Software | Total |
| technology | |||||
| I.Originalprice | |||||
| 1.Balanceatperiod-beginning | 48,258,239.00 | 11,825,200.00 | 0.00 | 22,336,546.33 | 82,419,985.33 |
| 2.Increaseinthecurrentperiod | |||||
| (1)Purchase | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| （2）InternalR&D | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| （3）IncreasedofEnterpriseCombination | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 48,258,239.00 | 11,825,200.00 | 0.00 | 22,336,546.33 | 82,419,985.33 |
| II.Accumulatedamortization | |||||
| 1.Balanceatperiod-beginning | 15,274,148.35 | 11,825,200.00 | 11,128,065.03 | 38,227,413.38 | |
| 2.Increaseinthecurrentperiod | 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.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 15,719,931.01 | 11,825,200.00 | 13,154,358.09 | 40,699,489.10 | |
| III.Impairmentprovision | |||||
| 1.Balanceatperiod-beginning | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2.Increaseinthecurrentperiod | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1)Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | |||||
| （1）Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
4.Balanceatperiod-end
| 4.Balanceatperiod-end | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4.Bookvalue | |||||
| 1.Bookvalueatperiod-end | 32,538,307.99 | 0.00 | 0.00 | 9,182,188.24 | 41,720,496.23 |
| 2.Bookvalueatperiod-beginning | 32,984,090.65 | 0.00 | 0.00 | 11,208,481.30 | 44,192,571.95 |
Attheendofthisperiod,theintangibleassetsformedthroughthecompany'sinternalresearchanddevelopmentaccountedfor0.00%ofthebalanceofintangibleassets
(2)Detailsoffixedassetsfailedtoaccomplishcertificationoflanduseright
None
27.R&DexpensesNone
28.Goodwill
(1)Originalbookvalueofgoodwill
InRMB
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Themergerofenterprises | disposition | |||||
| SAPOPhotoelectric | 9,614,758.55 | 0.00 | 0.00 | 9,614,758.55 | ||
| ShenzhenBeautyCenturyGarmentCo.,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）Impairmentofgoodwill
InRMB
| Nameoftheinvesteesortheeventsformedgoodwill | Openingbalance | Increase | Decrease | Closingbalance | ||
| Provision | disposition | |||||
| SAPOPhotoelectric | 9,614,758.55 | 0.00 | 0.00 | 9,614,758.55 | ||
| ShenzhenBeautyCenturyGarmentCo.,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 | ||
InformationaboutanassetgrouporassetgroupportfolioNoneExplainthegoodwillimpairmenttestprocess,keyparameters(suchasforecastperiodgrowthrateatexpectedfuturecashflow,stableperiodgrowthrate,profitmargin,discountrate,forecastperiod,etc.)andtheconfirmationmethodofgoodwillimpairmentlossNoneImpactofthegoodwillimpairmenttestNone
29.Longtermamortizeexpenses
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Amortizedexpenses | Otherloss | Balanceinyear-end |
| Decorationandfacilitiesrenovationfee | 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.Deferredincometaxassets/Deferredincometaxliabilities
(1)Uncompensateddeferredincometaxassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Assetimpairmentprovision | 189,041,740.48 | 28,356,261.07 | 206,115,717.20 | 30,917,357.58 |
| Unrealizedprofitfrom | 2,190,520.68 | 328,578.10 | 2,235,077.97 | 335,261.70 |
| internaltransactions | ||||
| Deductibleloss | 107,459,166.10 | 16,115,579.51 | 90,052,078.73 | 13,397,964.96 |
| Creditlossprovision | 73,083,485.00 | 12,342,262.52 | 65,076,915.43 | 11,372,802.27 |
| Deferredincome | 103,811,720.34 | 15,571,758.05 | 116,768,810.33 | 17,515,321.55 |
| Changesinfairvalueofinvestmentinotherequityinstruments | 14,831,681.50 | 3,707,920.38 | 14,831,681.50 | 3,707,920.38 |
| Employeecompensationpayable | 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)Detailsoftheun-recognizeddeferredincometaxliabilities
InRMB
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofinvestmentinotherequityinstruments | 160,494,427.01 | 40,123,606.76 | 160,494,427.01 | 40,123,606.76 |
| Thedifferencebetweentheinitialrecognitioncostoflong-termequityinvestmentandtaxbasis | 62,083,693.36 | 15,520,923.34 | 62,083,693.36 | 15,520,923.34 |
| Rentreceivable | 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)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set
InRMB
| Items | Trade-offbetweenthedeferredincometaxassetsandliabilities | Endbalanceofdeferredincometaxassetsorliabilitiesafteroff-set | Trade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-begin | Openingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set |
| Deferredincometaxassets | -9,298,589.69 | 68,718,492.58 | -9,566,421.29 | 69,823,814.29 |
| Deferredincometaxliabilities | -9,298,589.69 | 48,518,353.82 | -9,566,421.29 | 47,974,267.80 |
(4)Detailsofincometaxassetsnotrecognized
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Deductibletemporarydifference | 6,189,658.00 | 5,742,636.02 |
| Deductibleloss | 463,254,123.12 | 464,226,095.10 |
| Total | 469,443,781.12 | 469,968,731.12 |
(5)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears
InRMB
| Year | Balanceinyear-end | Balanceinyear-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.Othernon-currentassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
| Prepaymentforengineeringandequipment | 14,492,289.46 | 0.00 | 14,492,289.46 | 16,792,930.20 | 0.00 | 16,792,930.20 |
| Investmentfundstobeliquidated | 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-termborrowings
（1）Categoriesofshort-termloans
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Creditloans | 8,000,000.00 | 7,000,000.00 |
| Total | 8,000,000.00 | 7,000,000.00 |
Note：None
(2)SituationofOverdueOutstandingShort-TermBorrowingThetotalamountofoverdueshort-termloansattheendofthisperiodisinRMB0.00,ofwhichtheimportantoverdueshort-termloansareasfollows:None
33.TransactionalfinancialliabilitiesNone
34.DerivativefinancialliabilityNone
35.Notespayable
InRMB
| Type | Balanceinyear-end | Balanceinyear-begin |
| BankacceptanceBill | 15,284,993.54 | 0.00 |
| Total | 15,284,993.54 | 0.00 |
Thetotalnotepayablenotdueattheendoftheperiodis0.00yuan.
36.Accountspayable
(1)Listofaccountspayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Paymentforgoods | 408,449,533.79 | 304,916,368.65 |
| Servicecharge | 16,255,936.12 | 11,386,158.86 |
| Localities | 7,901,712.00 | 4,609,134.50 |
| Subcontractingpayment | 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)Significantadvancefromcustomersagingoveroneyear
OnJune30,2023,theCompanyhadnosignificantaccountspayablewithanagingofmorethanoneyear.
37.Advanceaccount
(1)ListofAdvanceaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Rentandother | 1,164,665.15 | 1,393,344.99 |
| Total | 1,164,665.15 | 1,393,344.99 |
(2)Significantadvancefromcustomersagingoveroneyear
OnJune30,2023,theCompanyhadnosignificantaccountspayablewithanagingofmorethanoneyear.
38.Contractliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Goods | 4,975,276.30 | 4,274,109.40 |
| Total | 4,975,276.30 | 4,274,109.40 |
AmountandreasonsforthesignificantchangeinthebookvalueduringthereportingperiodNone
39.PayableEmployeewage
(1)ListofPayrollpayable
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Payableinthisperiod | Balanceinyear-end |
| I.Short-termcompensation | 60,940,432.90 | 129,088,042.66 | 132,984,150.88 | 57,044,324.68 |
| II.Post-employmentbenefits-definedcontributionplans | 7,103,766.95 | 7,103,766.95 |
| Dismissalbenefits | 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-termremuneration
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Decreaseinthisperiod | Balanceinyear-end |
| 1.Wages,bonuses,allowancesandsubsidies | 57,472,981.87 | 115,273,963.12 | 119,127,683.37 | 53,619,261.62 |
| 2.Employeewelfare | 29,185.44 | 4,206,521.68 | 4,235,707.12 | 0.00 |
| 3.Socialinsurancepremiums | 0.00 | 3,013,562.59 | 3,013,562.59 | 0.00 |
| Including：Medicalinsurance | 0.00 | 2,107,846.75 | 2,107,846.75 | 0.00 |
| Workinjuryinsurance | 0.00 | 160,521.32 | 160,521.32 | 0.00 |
| Maternityinsurance | 0.00 | 219,350.79 | 219,350.79 | 0.00 |
| Other | 0.00 | 525,843.73 | 525,843.73 | 0.00 |
| 4.Publicreservesforhousing | 202,391.00 | 3,992,227.00 | 4,194,618.00 | 0.00 |
| 5.Unionfundsandstaffeducationfee | 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）Definedcontributionplanslisted
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Decreaseinthisperiod | Balanceinyear-end |
| 1.Basicold-ageinsurancepremiums | 0.00 | 5,633,933.03 | 5,633,933.03 | 0.00 |
| 2.Unemploymentinsurance | 0.00 | 140,977.99 | 140,977.99 | 0.00 |
| 3.Annuitypayment | 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 |
Othernote
TheGroupparticipatesinpensioninsuranceandunemploymentinsuranceplansestablishedbygovernmentagenciesaccordingtoregulations,andaccordingtotheplans,theGrouppaysfeestotheseplansaccordingtotheprescribedstandards.Inadditiontotheabove-mentionedmonthlydepositfees,theGroupwillnolongerassumefurtherpaymentobligations.Thecorrespondingexpensesareincludedinthecurrentprofitsandlossesortherelatedassetcostswhenincurred.TheCompanyshallcontributeRMB5,633,933.03tothepensioninsuranceplanandRMB140,977.99totheunemploymentinsuranceplan.Asat30June2023,theCompanypaidthefullamountofpensioninsuranceandunemploymentinsuranceplanspayableduringthereportingperiod.
40.TaxPayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| VAT | 597,591.27 | 1,740,677.77 |
| EnterpriseIncometax | 1,944,668.44 | 4,655,525.64 |
| IndividualIncometax | 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.Otherpayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Otherpayable | 187,021,282.45 | 197,345,455.37 |
| Total | 187,021,282.45 | 197,345,455.37 |
（1）Interestpayable
None
（2）DividendspayableOtherexplanations,includingsignificantdividendspayablethathavenotbeenpaidformorethan1year,itshalldisclosethereasonsfornon-payment:None
(3)Otheraccountspayable1）Otheraccountspayablelistedbynatureoftheaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| EngineeringEquipmentfund | 80,153,167.17 | 83,337,092.31 |
| Unitaccount | 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 |
）Importantotherpayableswithanagingofmorethan1year
InRMB
| Items | Balanceattheendofthisyear | Reasonsfornopaymentorcarry-over |
| BeijingCEEDIEngineering&TechnologyCo.,Ltd. | 16,724,271.45 | Thefinalpaymentsettlementoftheprojecthasnotbeencompleted |
| Total | 16,724,271.45 |
42.Liabilitiesclassifiedasholdingforsale
None
43.Non-currentliabilitiesduewithin1year
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Long-termduewithinoneyear | 100,024,512.50 | 97,182,080.19 |
| Leaseliabilitiesduewithinoneyear | 7,465,519.14 | 7,001,358.03 |
| Total | 107,490,031.64 | 104,183,438.22 |
44.Othercurrentliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Didnotterminatetheconfirmationbillendorsement,discount | 40,032,610.22 | 48,387,401.67 |
| Returnpayable | 34,117,277.42 | 44,558,340.11 |
Total
| Total | 74,149,887.64 | 92,945,741.78 |
45.Long-termborrowing
(1)ListofLong-termborrowing
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Guaranteedloan | 657,173,111.84 | 704,603,665.19 |
| Less:Long-termloansduewithinoneyear | 100,024,512.50 | 97,182,080.19 |
| Total | 557,148,599.34 | 607,421,585.00 |
Descriptionofthelong-termloanclassification
SAPOPhotoelectric,asubsidiaryoftheCompany,mortgageditsrealestaterightssuchasthefactorybuilding,andtheCompanyandHangzhouJinjiangGroupCo.,Ltd.provided60%and40%jointguaranteefortheloanrespectively.
46.BondpayableNone
47.Leaseliabilities
InRMB
| Items | Balanceyear-end | Year-beginningbalance |
| leaseliabilities | 17,823,282.59 | 15,630,030.74 |
| Less：Leaseliabilitiesduewithin1year | 7,465,519.14 | 7,001,358.03 |
| Total | 10,357,763.45 | 8,628,672.71 |
48.Long-termpayableNone
49.LongtermpayrollpayableNone
50.EstimatedliabilitiesNone
51.Deferredincome
InRMB
| Items | Beginningofterm | Increasedthisterm | Decreasedthisterm | Endofterm | Reason |
| GovernmentSubsidy | 117,814,796.10 | 8,628,497.04 | 21,689,214.87 | 104,754,078.27 | GovernmentSubsidy |
| Total | 117,814,796.10 | 8,628,497.04 | 21,689,214.87 | 104,754,078.27 |
Detailsofgovernmentsubsidies：
InRMB
| Items | Beginningofterm | Newsubsidyincurrentperiod | Amounttransferredtonon-operationalincome | Otherincomerecordedinthecurrentperiod | Amountofcostdeductedinthecurrentperiod | Otherdecrease | Endofterm | Asset-relatedorincome-related |
| Productionlinesubsidy | 80,986,810.31 | 8,628,497.04 | 10,368,087.03 | -2,500,000.00 | 76,747,220.32 | Asset-related | ||
| Equipmentsubsidy | 30,827,985.79 | 2,821,127.84 | 28,006,857.95 | Asset-related | ||||
| Materialsubsidy | 6,000,000.00 | 6,000,000.00 | 0.00 | Income-related |
52.Othernon-currentliabilitiesNone
53.Stockcapital
InRMB
| Year-beginningbalance | Changed（+，-） | Balanceinyear-end | |||||
| Issuanceofnewshare | Bonusshares | Capitalizationofpublicreserve | Other | Subtotal | |||
| Totalofcapitalshares | 506,521,849.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 506,521,849.00 |
54.OtherequityinstrumentsNone
55.Capitalreserves
InRMB
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Sharepremium | 1,826,482,608.54 | 0.00 | 0.00 | 1,826,482,608.54 |
| Othercapitalreserves | 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.TreasurystockNone
57.Othercomprehensiveincome
InRMB
| Items | Year-beginningbalance | Amountofcurrentperiod | Year-endbalance | |||||
| Amountincurredbeforeincometax | Less：Amounttransferredintoprofitandlossinthecurrentperiodthatrecogniedintoothercomprehensiveincomeinpriorperiod | Less：Priorperiodincludedinothercompositeincometransfertoretainedincomeinthecurrentperiod | Less：Incometaxexpenses | After-taxattributetotheparentcompany | After-taxattributetominorityshareholder | |||
| 1.Othercomprehensiveincomethatcannotbereclassifiedinthelossandgaininthefuture | 108,584,344.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 108,584,344.77 |
| Changesinfairvalueofinvestmentsinotherequityinstruments | 108,584,344.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II.Othercomprehensiveincometobereclassifiedintoprofitorloss | 1,012,264.54 | 352,684.20 | 0.00 | 0.00 | 0.00 | 233,590.80 | 119,093.40 | 1,245,855.34 |
| Changesinfairvalueofreceivablesfinancing | -178,640.10 | 297,733.50 | 0.00 | 0.00 | 0.00 | 178,640.10 | 119,093.40 | 178,640.10 |
| Translationdifferenceofforeigncurrencyfinancialstatements | 1,190,904.64 | 54,950.70 | 0.00 | 0.00 | 0.00 | 54,950.70 | 0.00 | 1,245,855.34 |
| Totalofothercomprehensive | 109,596,609.31 | 352,684.20 | 0.00 | 0.00 | 0.00 | 233,590.80 | 119,093.40 | 109,830,200.11 |
58.SpecialreservesNone
59.Surplusreserves
InRMB
income
Items
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Statutorysurplusreserve | 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 |
Notetosurplusreserve,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:None
60.Retainedprofits
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Retainedearningsbeforeadjustmentsattheyearbeginning | 170,636,610.95 | 125,317,336.31 |
| Retainedearningsafteradjustmentsattheyearend | 170,636,610.95 | 125,317,336.31 |
| Add:NetprofitattributabletoownersoftheCompanyfortheperiod | 36,307,162.97 | 73,309,182.94 |
| Less：Statutorysurplusreserve | 0.00 | 2,663,815.85 |
| Commonstockdividendpayable | 30,391,310.94 | 25,326,092.45 |
| Retainedprofitsattheperiodend | 176,552,462.98 | 170,636,610.95 |
AsregardsthedetailsofadjustedthebeginningundistributedprofitsNone
61.Businessincome,Businesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 1,470,203,939.11 | 1,286,170,472.71 | 1,425,009,759.63 | 1,240,002,222.92 |
| Otherbusiness | 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-relatedinformation:
InRMB
| Producttype | Polarizer | Propertyleasingandmanagement | 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 | ||
| Propertyleasingandmanagement | 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 |
Descriptionofperformanceobligations
TheGroup'sgoodssalesaremainlytheproductionandsalesofpolarizerandtextile-relatedgoods.Forgoodssoldtocustomers,theGrouprecognizesincomewhenthecontrolofthegoodsistransferred,thatis,whenthegoodsaredeliveredtothedesignatedplaceoftheotherpartyandsignedbytheotherparty.Sincethedeliveryofgoodstocustomersrepresentstherighttounconditionallyreceivethecontractconsideration,thematurityofthemoneyonlydependsonthepassageoftime,sotheGrouprecognizesareceivablewhenthegoodsaredeliveredtoprofessionalcustomers.Whenthecustomerprepaysthepayment,theGrouprecognizesthetransactionamountreceivedasacontractualliabilityuntilthegoodsaredeliveredtothecustomer.
TheCompanyprovidespropertyandleasingservicestocustomers,whichisaperformanceobligationtobefulfilledwithinacertainperiodoftime.TheGrouprecognizesincomeintheprocessofprovidingpropertyandleasingservices.
Informationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:
OnJune30,2023,Theamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwas4,975,276.30Yuanattheperiod-end,amongwhichRMB4,975,276.30Yuanwasexpectedtoberecognizedin2023.TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB1,867,398.72attheperiod-end,amongwhichRMB1,867,398.72wasexpectedtoberecognizedin2023,RMB0wasexpectedtoberecognizedin2024.RMB0wasexpectedtoberecognizedin2025.
62.Taxesandsurcharges
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Propertytax | 2,918,264.56 | 2,911,689.84 |
| Stamptax | 794,946.41 | 829,848.83 |
| Urbanconstructiontax | 280,887.35 | 193,493.65 |
| Educationsurcharge | 204,444.12 | 133,269.00 |
| Landusetax | 188,021.08 | 97,737.54 |
| vehicleandvesselusagetax | 4,200.00 | 1,440.00 |
| Other | 6,566.26 | 3,883.32 |
| Total | 4,397,329.78 | 4,171,362.18 |
63.Salesexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Employeecompensation | 10,230,501.01 | 9,765,028.00 |
| Salesservicecharge | 3,893,275.02 | 5,791,774.85 |
| Other | 1,154,529.29 | 922,396.04 |
| Businessentertainment | 481,984.21 | 734,977.55 |
| Travelexpenses | 390,639.14 | 444,372.70 |
| Exhibitionfee | 288,544.63 | 697,198.25 |
| Total | 16,439,473.30 | 18,355,747.39 |
64.Administrativeexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 44,414,164.48 | 40,666,351.70 |
| Depreciationoffixedassets | 5,553,209.06 | 7,296,978.02 |
| Waterandelectricity | 2,328,829.65 | 2,713,713.93 |
| Intermediaryorgan | 4,330,104.04 | 2,701,374.70 |
| Intangibleassetsamortization | 2,472,075.72 | 2,514,696.45 |
| Travelexpenses | 224,064.04 | 131,833.96 |
| Officeexpenses | 449,240.06 | 362,061.20 |
| Businessentertainment | 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&Dcosts
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| 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 |
| Travelexpenses | 19,400.94 | 45,732.13 |
| Other | 18,222.82 | 589,921.33 |
| Total | 36,004,188.62 | 34,870,992.66 |
66.FinancialExpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Interestexpenses | 13,965,081.41 | 15,882,534.27 |
| Interestincome | -5,318,571.16 | -773,863.34 |
| Exchangeloss | -7,582,000.80 | -27,366,911.14 |
| Feesandother | 3,114,986.18 | 3,424,366.77 |
| Total | 4,179,495.63 | -8,833,873.44 |
67.Otherincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| GovemmentSubsidy | 19,369,307.55 | 10,780,654.48 |
68.Investmentincome
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
| Long-termequityinvestmentreturnsaccountedforbyequitymethod | -2,111,260.03 | 1,658,532.04 |
| Investmentincomeoftransactionalfinancialassetsduringtheholdingperiod | 8,948,614.72 | 8,967,680.80 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 906,000.00 | 708,000.00 |
| Other | -291,040.32 | |
| Total | 7,743,354.69 | 11,043,172.52 |
69.NetexposurehedgingincomeNone
70.GainsonthechangesinthefairvalueNone
71.Creditimpairmentloss
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
| Lossofbaddebtsinotherreceivables | 383,523.90 | 6,951,880.47 |
| Lossofbadnotereceivable | 0.00 | 291,096.44 |
| Lossofbadaccountsreceivable | -9,052,893.75 | -10,228,230.44 |
| Total | -8,669,369.85 | -2,985,253.53 |
72.Lossesfromassetimpairment
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| II.LossofinventorypriceandImpairmentofcontractperformancecosts | -35,512,897.29 | -42,073,672.20 |
| Total | -35,512,897.29 | -42,073,672.20 |
73.Assetdisposalincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Gains&lossesonthedisposaloffixedassets | 321.08 | -11,114.72 |
74.Non-Operationincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Recordedintheamountofthenon-recurringgainsandlosses |
| Suppliercompensation | 71,816.74 | 1,615,000.00 | 71,816.74 |
| Payablewithoutpayment | 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 |
Governmentsubsidiesrecordedintocurrentprofitsandlosses：None
75.Non-currentexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Theamountofnon-operatinggains&lossed |
| Compensationexpenses | 3,009,886.86 | 0.00 | 3,009,886.86 |
| Non-currentassetDispositionloss | 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.Incometaxexpenses
(1)Incometaxexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentincometaxexpense | 4,063,609.65 | 16,930.91 |
| Deferredincometaxexpense | 1,649,407.73 | 323,966.90 |
| Total | 5,713,017.38 | 340,897.81 |
(2)Reconciliationofaccountprofitandincometaxexpenses
InRMB
| Items | Amountofcurrentperiod |
| Totalprofits | 57,899,822.61 |
| Incometaxexpensescalculatedattheapplicabletaxrate | 14,474,955.65 |
| Influenceofdifferenttaxratesappliedbysomesubsidiaries | -2,763,593.41 |
| Incomenotsubjecttotax | 299,238.91 |
| Non-deductiblecosts,expensesandlosses | 3,425.00 |
| Taximpactbytheunrecognizeddeductiblelossesanddeductibletemporarydifferencesinpreviousyears | -17,279.47 |
| Taximpactofunrecognizeddeductiblelossesanddeductibletemporarydifferences | -883,101.00 |
| Taximpactofresearchanddevelopmentfeeplusdeduction | -5,400,628.30 |
| Incometaxexpense | 5,713,017.38 |
77.OthercomprehensiveincomeRefertothenotes57
78.Supplementaryinformationtocashflowstatement
(1)Othercashreceivedrelevanttooperatingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentaccountandother | 59,933,695.82 | 120,535,575.04 |
| GovernmentSubsidy | 8,752,204.09 | 13,883,551.50 |
| LetterofCreditDeposit | 8,087,465.25 | 152,041,095.07 |
| Interestincome（Notincludingfinancingproduct） | 1,221,464.54 | 559,472.02 |
| Total | 77,994,829.70 | 287,019,693.63 |
Notetoothercashreceivedinconnectionwithoperatingactivities:None
(2)Othercashpaidrelatedtooperatingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentaccountandother | 67,303,982.70 | 37,548,518.13 |
| LetterofCreditDeposit | 10,788,695.79 | 11,655,819.11 |
| Total | 78,092,678.49 | 49,204,337.24 |
Notetoothercashpaidinconnectionwithoperatingactivities:None
(3)Cashreceivedrelatedtootherinvestmentactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 195,000,000.00 | 635,000,000.00 |
| Total | 195,000,000.00 | 635,000,000.00 |
Notetoothercashreceivedrelatedtootherinvestmentactivities：
None
(4).Cashpaidrelatedtootherinvestmentactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Purchaseoffinancialmanagement,structureddepositandinvestment | 631,537,000.00 | 650,000,001.00 |
| Total | 631,537,000.00 | 650,000,001.00 |
NotetootherCashpaidrelatedtootherinvestmentactivities：None
（5）OthercashreceivedinrelationtofinancingactivitiesNone
（6）Cashpaidrelatedwithfinancingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Leasepayment | 4,141,770.57 | 0.00 |
| Total | 4,141,770.57 | 0.00 |
NotetootherCashpaidrelatedwithfinancingactivities：None
79.SupplementInformationforcashflowstatement
（1）SupplementInformationforcashflowstatement
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| I.Adjustingnetprofittocashflowfromoperatingactivities |
| Netprofit | 52,186,805.23 | 70,104,710.88 |
| Add:Impairmentlossprovisionofassets | 44,182,267.14 | 45,058,925.73 |
| Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets | 113,129,673.90 | 70,459,401.36 |
| DepreciationofUserightassets | 4,577,501.46 | 4,303,599.85 |
| Amortizationofintangibleassets | 2,472,075.72 | 460,596.04 |
| AmortizationofLong-termdeferredexpenses | 1,010,991.86 | 674,121.16 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets | -321.08 | 11,114.72 |
| Fixedassetsscraploss | 0.00 | 0.00 |
| Lossonfairvaluechanges | 0.00 | 0.00 |
| Financialcost | -9,785,585.78 | -8,833,873.44 |
| Lossoninvestment | -7,387,354.69 | -11,043,172.52 |
| Decreaseofdeferredincometaxassets | 1,105,321.71 | 43,628.11 |
| Increasedofdeferredincometaxliabilities | 544,086.02 | 97,374.65 |
| Decreaseofinventories | -140,167,792.05 | -113,943,401.07 |
| Deceaseofoperatingreceivables | -172,947,643.53 | -74,703,894.32 |
| IncreasedofoperatingPayable | 125,482,947.69 | 96,749,103.44 |
| Other | 0.00 | 0.00 |
| Netcashflowsarisingfromoperatingactivities | 14,402,973.60 | 79,438,234.59 |
| II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows: | ||
| Conversionofdebtintocapital | 0.00 | 0.00 |
| Convertiblecorporatebondsmaturingwithinoneyear | 0.00 | 0.00 |
| Financingoffixedassetsleased | 0.00 | 0.00 |
| III.Movementofcashandcashequivalents： | ||
| Endingbalanceofcash | 345,683,735.99 | 348,660,980.95 |
| Less:Beginningbalanceofcashequivalents | 874,474,834.46 | 302,408,433.72 |
| Add：Endbalanceofcashequivalents | 0.00 | 0.00 |
| Less:Beginningbalanceofcashequivalents | 0.00 | 0.00 |
| Netincreaseofcashandcashequivalent | -528,791,098.47 | 46,252,547.23 |
(2)NetCashpaidofobtainingthesubsidiaryNone
(3)NetCashreceiveofdisposalofthesubsidiaryNone
(4)Componentofcashandcashequivalents
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| I.Cash | 345,683,735.99 | 874,474,834.46 |
| Including：Cashathand | 2,231.43 | 3,980.56 |
| Demandbankdeposit | 345,681,504.56 | 874,470,853.90 |
| III.Balanceofcashandcashequivalentsattheperiodend | 345,683,735.99 | 874,474,834.46 |
80.Noteofstatementofchangesintheowner'sequity
Specifythedescriptionoftheitem"others"andtheadjustedamountofthebalanceattheendoflastyear:None
81.Theassetswiththeownershiporuserightrestricted
InRMB
| Items | Bookvalueattheendofthereportingperiod | Causeofrestriction |
| Monetaryfund | 270,542,231.07 | CD+structureddeposit+timedeposit+bankdraftmargin |
| Billreceivable | 40,032,610.22 | Endorsedbutnotyetduebankacceptancebills |
| Fixedassets | 462,070,010.10 | Mortgage |
| Intangibleassets | 32,542,134.43 | Mortgage |
| Total | 805,186,985.82 |
82.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
InRMB
| Items | Closingforeigncurrencybalance | Exchangerate | ClosingconverttoRMBbalance |
| Monetaryfunds | 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 |
| Accountpayable | 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 |
| Otherreceivable | 509,611.25 | ||
| Including：USD | 70,526.62 | 7.2258 | 509,611.25 |
| Accountpayable | 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 |
| Otherpayable | 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)Notetooverseasoperatingentities,includingimportantoverseasoperatingentities,witchshouldbedisclosedaboutitsprincipalbusinessplace,functioncurrencyforbookkeepingandbasisforthechoice.Incaseofanychangeinfunctioncurrency,thecauseshouldbedisclosed.
□Applicable√Notapplicable
83.HedgingArbitrageAccordingtoarbitragecategorytodisclosearbitrageitem,relevantarbitragetoolsandthearbitragedriskqualitativeandquantitativeinformation:None
84.Governmentsubsidies
（1）Governmentsubsidiesconfirmedincurrentperiod
InRMB
| Items | Amount | Project | Amountincludedincurrentprofitandloss |
| Productionlinesubsidy | 76,747,220.32 | Deferredincome | 10,368,087.03 |
| Equipmentsubsidy | 28,006,857.95 | Deferredincome | 2,821,127.84 |
| Materialsubsidy | 0.00 | Deferredincome | 6,000,000.00 |
| Other | 180,092.68 | Deferredincome | 180,092.68 |
（2）Governmentsubsidyreturn
□Applicable√Notapplicable
85.OtherNoneVIII.Changesofmergescope
1.Businessmergernotundersamecontrol
(1)Businessmergernotundersamecontrolinreportingperiod
None
(2)Combinedcostandgoodwill
None
(3)Theidentifiableassetsandliabilitiesofacquireeatpurchasedate
None
(4)Theprofitorlossfromequityheldbythedatebeforeacquisitioninaccordancewiththefairvaluemeasuredagain、Whetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizeenterprisesmergerandgainingthecontrolduringthereportingperiod
□Yes√No
(5)NotetomergercouldnotbedeterminedreasonableconsiderationorIdentifiableassets,FairvalueofliabilitiesoftheacquireeatacquisitiondateorclosingperiodofthemergeNone
(6)Othernote:
None
2.Businesscombinationunderthesamecontrol
(1)BusinesscombinationunderthesamecontrolduringthereportingperiodNone
(2)CombinationcostNone
(3)ThebookvalueoftheassetsandliabilitiesofthemergedpartyonthedateofconsolidationNone
3.CounterpurchaseBasicinformationoftrading,thebasisoftransactionsconstitutecounterpurchase,theretainassets,liabilitiesofthelistedcompanieswhetherconstitutedabusinessanditsbasis,thedeterminationofthecombinationcosts,theamountandcalculationofadjustedrightsandinterestsinaccordancewiththeequitytransactionprocess.None
4.ThedisposalofsubsidiaryWhetherthereisasingledisposaloftheinvestmenttosubsidiaryandlostcontrol
□Yes√NoWhethertherearemultipletransactionsstepbystepdisposetheinvestmenttosubsidiaryandlostcontrolinreportingperiod
□Yes√No
5.OtherreasonsforthechangesincombinationscopeNotetothechangeintheconsolidationscope(e.g.newsubsidiaries,liquidationsubsidiaries,etc.)causedbyotherreasonsandrelevantinformation:
None
6.OtherNone
IX.Equityinotherentities
1.Equityinsubsidiary
(1)Thestructureoftheenterprisegroup
| Subsidiary | Mainoperation | Registeredplace | Businessnature | Share-holdingratio | Acquiredway | |
| Directly | Indirectly | |||||
| ShenzhenLishiIndustryDevelopmentCo.,Ltd | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| ShenzhenHuaqiangHotel | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| ShenfangPropertyManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Shenzhen | Shenzhen | Productionoffullyelectronicjacquardknittingwholeshape | 100.00% | Establish | |
| ShenzhenShenfangSungangPropertyManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| SAPOPhotoelectric | Shenzhen | Shenzhen | Polarizerproductionandsales | 60.00% | Establish | |
| Shengtou(Hongkong)Co.,Ltd. | Hongkong | Hongkong | Productionandsalesofpolarizer | 100.00% | Establish | |
| ShenzhenShengjinlianTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Productionandsalesofpolarizer | 100.00% | Establish | |
Explanationthattheshareholdingratioinsubsidiariesisdifferentfromthevotingrightratio:NoneBasisforholdinghalforlessvotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfvotingrightsbutnotcontrollingtheinvestee:NoneFortheimportantstructuredsubjectsincludedinthescopeofconsolidation,thecontrolbasisis:NoneBasisfordeterminingwhetherthecompanyisanagentoraprincipal:NoneOthernote：
Note
（2）Significantnotwholly-ownedsubsidiaries
InRMB
| Name | Holdingproportionofnon-controllinginterest | Profitorlossattributabletonon-controllinginterest | Dividenddeclaredtonon-controllinginterest | Closingbalanceofnon-controllinginterest |
| SAPOPhotoelectric | 40.00% | 15,879,642.26 | 0.00 | 1,197,776,505.87 |
Othernote：
None
（3）Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries
InRMB
| Subsidiaries | Closingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | |
| SAPOPhotoelectric | 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 |
InRMB
| Subsidiaries | Currentterm | Lastterm | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | |
| SAPOPhotoelectric | 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)SignificantrestrictionsofusingenterprisegroupassetsandpayoffenterprisegroupdebtNone
(5)ProvidefinancialsupportorothersupportforstructureentitiesincorporateintothescopeofconsolidatedfinancialstatementsNone
2.ThetransactionoftheCompanywithitsowner’sequitysharechangedbutstillcontrollingthesubsidiary
(1)Notetoowner’sequitysharechangedinsubsidiaryNone
(2)Thetransaction’sinfluencetoequityofminorityshareholdersandattributabletotheowner'sequityoftheparentcompany
None
3.Equityinjointventurearrangementorassociatedenterprise
(1)Significantjointventurearrangementorassociatedenterprise
| NameofSubsidiary | MainPlacesofOperation | RegistrationPlace | NatureofBusiness | ShareholdingRatio(%) | Theaccountingtreatmentofinvestmentinassociates | |
| direct | indirect | |||||
| ShenzhenGuanhuaPrinting& | Shenzhen | Shenzhe | Property | 50.16% | 0.00% | Equitymethod |
| DyeingCo.,Ltd | n | leasing |
Explanationthattheshareholdingratiointhejointventureorassociatedenterpriseisdifferentfromthevotingrightratio:NoneBasisforholdinglessthan20%ofvotingrightsbutwithsignificantinfluence,orholding20%ormoreofvotingrightsbutwithoutsignificantinfluence:None
（2）TheSummarizedFinancialInformationofJointVentures
InRMB
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod |
Currentassets
| Currentassets | 47,559,682.42 | 47,899,181.48 |
| Including：Cashandcashequivalent | ||
| Non-currentassets | 210,047,689.01 | 217,362,821.36 |
| Totalassets | 257,607,371.43 | 265,262,002.84 |
| Currentliabilities | 14,418,070.32 | 16,619,409.76 |
| Non-currentliabilities | 31,942,467.19 | 33,025,262.69 |
| Totalliabilities | 46,360,537.51 | 49,644,672.45 |
| Minorityequity | ||
| Attributabletoshareholdersoftheparentcompany | 211,246,833.92 | 215,617,330.39 |
| Shareofnetassetscalculatedbystake | 105,961,411.89 | 108,153,652.92 |
| Adjustmentitems | ||
| --Goodwill | 21,595,462.44 | 21,595,462.44 |
| --Internaltransactionsdidnotachieveprofit | ||
| --Other | -242,823.92 | -242,843.60 |
| Bookvalueofequityinvestmentinjointventures | 127,314,050.41 | 129,506,271.76 |
| Thefairvalueoftheequityinvestmentofajointventurewithapublicquotation | ||
| Operatingincome | 4,366,254.94 | 10,946,554.54 |
| Financialexpenses | -89,049.09 | -135,801.19 |
| Incometaxexpenses | -902,781.76 | -717,712.93 |
| Netprofit | -4,370,457.23 | 2,617,456.35 |
| Netprofitfromterminatedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | -4,370,457.23 | 2,617,456.35 |
Dividendsreceivedfromjointventuresforthisyear
| Dividendsreceivedfromjointventuresforthisyear | 0.00 | 0.00 |
(3)Mainfinancialinformationofsignificantassociatedenterprise
None
(4)Summaryfinancialinformationofinsignificantjointventureorassociatedenterprise
InRMB
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod | |
| Associatedenterprise |
| Totalbookvalueofinvestment | 4,952,342.73 | 4,975,563.98 |
| Totalofthefollowingitemscalculatedbyshareholdingratio | ||
| -Netprofit | 26,010.62 | 269,859.91 |
| -Othercomprehensiveincome | 54,950.70 | 75,756.02 |
| -Totalcomprehensiveincome | 80,961.32 | 345,615.93 |
(5)NotetothesignificantrestrictionsoftheabilityofjointventureorassociatedenterprisetransferfundstotheCompanyNone
(6)TheexcesslossofjointventureorassociatedenterpriseNone
(7)TheunrecognizedcommitmentrelatedtojointventureinvestmentNone
(8)ContingentliabilitiesrelatedtojointventureorassociatedenterpriseinvestmentNone
4.SignificantcommonoperationNone
5.EquityofstructureentitynotincludinginthescopeofconsolidatedfinancialstatementsNone
6.Other
NoneX.RisksrelatedtofinancialinstrumentsTheCompany'smainfinancialinstrumentsincludemonetaryfunds,transactionalfinancialassets,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,otherequityinstrumentsinvestment,short-termloans,accountspayable,otherpayables,othercurrentliabilities,long-termloansandleaseliabilities,etc.Attheendofthisyear,thefinancialinstrumentsheldbytheGroupareasfollows.SeeNote(VII)fordetails.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheGrouptoreducetheserisksareasfollows.ThemanagementoftheGroupmanagesandmonitorstheseriskexposurestoensurethattheaboverisksarecontrolledwithinalimitedrange.
1.RiskmanagementobjectivesandpoliciesTheGroup'sgoalinriskmanagementistostrikeaproperbalancebetweenrisksandbenefits,reducethenegativeimpactofrisksontheGroup'soperatingperformancetothelowestlevel,andmaximizetheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementgoal,thebasicstrategyoftheGroup'srisk
managementistoidentifyandanalyzeallkindsofrisksfacedbytheGroup,establishanappropriaterisktolerancebottomlineandconductriskmanagement,andtimelyandreliablysuperviseallkindsofriskstocontroltheriskswithinalimitedrange.
1.1Marketrisk
1.1.1ForeignexchangeriskForeignexchangeriskreferstotheriskoflossescausedbyexchangeratechanges.TheGroup'sforeignexchangerisksaremainlyrelatedtoUSdollars,Japaneseyen,HongKongdollarsandEuros.ExceptforsomeimportpurchasesandexportsalesoftheGroup'scompanieslocatedinChinesemainlandwhicharemainlysettledinUSdollars,Japaneseyen,HongKongdollarsandEuros,othermajorbusinessactivitiesoftheGrouparesettledinRMB.
Asof30June2023,theCompany'sassetsandliabilitieswereallRMBbalances,exceptforthemonetaryitemsinforeigncurrenciesmentionedinNotes(VII),(82).Theforeignexchangerisksarisingfromtheassetsandliabilitieswithforeigncurrencybalances(convertedintoRMB)describedinthetablebelowmayhaveanimpactontheGroup'soperatingresults.
| Items目 | Balanceattheendofthisyear | |
| 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 |
TheGrouppayscloseattentiontotheimpactofexchangeratechangesontheGroup'sforeignexchangerisk.
Sensitivityanalysisofforeignexchangerisk
Sensitivityanalysisofforeignexchangeriskassumesthatallnetinvestmenthedgingandcashflowhedgingofoverseasoperationsarehighlyeffective.
Onthebasisoftheaboveassumptions,withothervariablesunchanged,thepre-taximpactofpossiblereasonableexchangeratechangesoncurrentprofitsandlossesandshareholders'equityisasfollows:
InRMB
| Items | Changesinexchangerate | Thisyear | |
| Impactonprofits | Impactonshareholders'equity | ||
| Allforeigncurrencies | AppreciationofRMBby5% | -14,476,953.90 | -14,476,953.90 |
| Allforeigncurrencies | DepreciationofRMBby5% | 14,476,953.90 | 14,476,953.90 |
1.1.2.Interestraterisk-riskofcashflowchange
TheCompany'sriskofcashflowchangesoffinancialinstrumentscausedbyinterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.TheGroupcontinuestopaycloseattentiontotheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintainfloatinginterestratesontheseloans,andthereisnointerestrateswaparrangementatpresent.SensitivityanalysisofinterestrateriskWithothervariablesunchanged,thepre-taximpactofpossiblereasonableinterestratechangesoncurrentprofitsandlossesandshareholders'equityisasfollows:
InRMB
| Items | Interestratechange | Thisyear | |
| Impactonprofits | Impactonshareholders'equity | ||
| Floating-rateloan | Increaseby1% | -6,571,731.12 | -6,571,731.12 |
| Floating-rateloan | Decreaseby1% | 6,571,731.12 | 6,571,731.12 |
1.2.CreditriskOnJune30,2023,thelargestcreditriskexposurethatmaycausetheCompany'sfinanciallossesmainlycamefromthelossoftheCompany'sfinancialassetscausedbythefailureoftheotherpartytothecontract,includingmonetaryfunds,transactionalfinancialassets,notesreceivable,accountsreceivable,receivablesfinancingand
otherreceivables.Onthebalancesheetdate,thebookvalueoftheCompany'sfinancialassetshasrepresenteditsmaximumcreditriskexposure.Inordertoreducethecreditrisk,theCompanyarrangesspecialpersonneltodeterminethecreditlimit,conductcreditapprovalandimplementothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverduedebts.Inaddition,theGroupreviewstherecoveryoffinancialassetsoneachbalancesheetdatetoensurethatsufficientcreditlossprovisionhasbeenmadeforrelevantfinancialassets.Therefore,themanagementoftheCompanybelievesthatthecreditriskassumedbytheCompanyhasbeengreatlyreduced.TheCompany'smonetaryfundsaredepositedinbankswithhighcreditratings,sothemonetaryfundsonlyhavelowcreditrisk.OnJune30,2023,thebalanceofaccountsreceivableoftheCompanytothetopfivecustomerswasRMB
497,273,412.84,accountingfor54.54%ofthebalanceofaccountsreceivableoftheCompany.Inaddition,theCompanyhasnoothersignificantcreditriskexposureconcentratedinasinglefinancialassetorfinancialassetportfoliowithsimilarcharacteristics.
1.3LiquidityriskWhenmanagingliquidityrisk,theCompanymaintainssufficientcashandcashequivalentsasdeemedbythemanagementandmonitorsthemtomeettheCompany'sbusinessneedsandreducetheimpactofcashflowfluctuations.ThemanagementoftheCompanymonitorstheuseofbankloansandensurescompliancewiththeloanagreement.
OnJune30,2023,theGroup'sunusedcomprehensivebankcreditlinewasRMB70,861.00.ThefinancialliabilitiesheldbytheCompanyareanalyzedaccordingtothematurityoftheundiscountedremainingcontractualobligationsasfollows:
InRMB
| Item | Within1year | 1-5years | Over5years | Total |
| Short-termloan | 8,151,016.67 | 0.00 | 0.00 | 8,151,016.67 |
| Accountspayable | 437,489,166.07 | 0.00 | 0.00 | 437,489,166.07 |
| Otherpayables | 187,021,282.45 | 0.00 | 0.00 | 187,021,282.45 |
| Othercurrentliabilities | 74,149,887.64 | 0.00 | 0.00 | 74,149,887.64 |
| Long-termloans | 100,024,512.50 | 594,693,456.05 | 86,935,756.48 | 781,653,725.03 |
| Leaseliabilities | 7,465,519.14 | 10,357,763.45 | 17,823,282.59 |
2.Transferoffinancialassets
2.1FinancialassetsthathavebeentransferredbuthavenotbeenderecognizedasawholeOnJune30,2023,thebookvalueofbankacceptancebillsendorsedbytheCompanytosuppliersforsettlementofaccountspayablewasRMB40,032,610.22.TheCompanybelievesthatalmostallrisksandrewardsrelatedtonotesreceivableatthetimeofendorsementhavenotbeentransferred,whichdoesnotmeettheconditionsforderecognitionoffinancialassets.Therefore,therelatednotesreceivablehavenotbeenderecognizedasawholeontheendorsementdate.
2.2Derecognitionhasbeenmadeasawhole,butthetransferorcontinuestobeinvolvedinthetransferredfinancialassetsTheCompanyendorsesthebankacceptancebillsheldbylargestate-ownedcommercialbankswithhighcreditratingandlistednationaljoint-stockcommercialbankstoathirdparty.Asalmostalltherisksandrewardsrelatedtothebankacceptancebillshavebeentransferredtothebanks,theCompanyderecognizestheendorsedandunexpiredbankacceptancebills.AccordingtotherelevantprovisionsoftheNegotiableInstrumentsLawofthePeople'sRepublicofChina,ifthebankacceptancebillfailstobepaidandacceptedatmaturity,theendorseehastherighttorequiretheCompanytopayofftheoutstandingbalance,sotheCompanycontinuestobeinvolvedintheendorsedbankacceptancebill.OnJune30,2023,theunexpiredbankacceptancebillendorsedbytheCompanywasRMB54,533,024.39.
XI.Disclosureoffairvalue
1.Endingfairvalueofassetsandliabilitiesmeasuredatfairvalue
InRMB
| Items | Year-endfairvalue | |||
| FairvaluemeasurementofLevel1 | FairvaluemeasurementofLevel2 | FairvaluemeasurementofLevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)TransactionalFinancialAsset | 0.00 | 613,554,063.16 | 0.00 | 613,554,063.16 |
| (II)Receivablefinancing | 0.00 | 0.00 | 22,863,088.36 | 22,863,088.36 |
| （III)Otherequityinstrumentinvestment | 0.00 | 0.00 | 167,678,283.27 | 167,678,283.27 |
| Totalliabilitiesmeasuredatfairvalueonanon-ongoingbasis | 0.00 | 613,554,063.16 | 190,541,371.63 | 804,095,434.79 |
| IIInconsistentfairvaluemeasurement | -- | -- | -- | -- |
2.Marketpricerecognitionbasisforconsistentandinconsistentfairvaluemeasurementitemsatlevel1
None
3.Itemsmeasuredbasedonthecontinuousoruncontinuouslevel2ndfairvalue,valuationtechniqueasused,natureofimportantparametersandquantitativeinformation
| Items | Fairvalueattheendofthisyear | Valuationtechnique | Inputvalue |
| Transactionalfinancialassets | 613,554,063.16 | Discountedcashflowtechnique | Expectedyield |
4.Itemsmeasuredbasedonthecontinuousoruncontinuouslevel3rdfairvalue,valuationtechniqueasused,natureofimportantparametersandquantitativeinformation
| Items | Fairvalueattheendofthisyear | Valuationtechnique | Inputvalue |
| Receivablefinancing | 22,863,088.36 | Discountedcashflowtechnique | Discountrate |
| Investmentinotherequityinstruments | 167,678,283.27 | Comparisonoflistedcompanies | P/Bratioofsimilarlistedcompanies |
| Comparableincomemethod | Marketprice |
5.Sensitivenessanalysisonunobservableparametersandadjustmentinformationbetweenopeningandclosingbookvalueofconsistentfairvaluemeasurementitemsatlevel3None
6.ExplainthereasonforconversionandthepolicygoverningwhentheconversionhappensifconversionhappensamongconsistentfairvaluemeasurementitemsatdifferentlevelsNone
7.ChangesinthevaluationtechniqueinthecurrentperiodandthereasonforchangeNone
8.FairvalueoffinancialassetsandliabilitiesnotmeasuredatfairvalueFinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyincludemonetaryfunds,notesreceivable,accountsreceivable,otherreceivables,short-termloans,accountspayable,otherpayables,long-termloansandleaseliabilities.ThemanagementoftheCompanybelievesthatthebookvaluesoffinancialassetsandfinancialliabilitiesmeasuredinamortizedcostinthefinancialstatementsareclosetotheirfairvalues.
9.OtherNoneXII.Relatedpartiesandrelatedpartytransactions
1.InformationabouttheparentcompanyoftheEnterprise.
| Nameofparentcompany | Placeofregistration | Businessnature | Registeredcapital | ShareholdingratiooftheparentcompanytotheCompany% | PercentageofvotingrightsoftheparentcompanytotheCompany% |
| ShenzhenInvestmentHoldingsCo.,Ltd | 18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen | Equityinvestment,realestatedevelopment,etc | 32,359,000,000.00 | 46.21% | 46.21% |
DescriptionoftheparentcompanyoftheEnterpriseTheparentcompanyoftheCompanyisawhollystate-ownedcompanyapprovedandauthorizedbytheShenzhenMunicipalGovernment,andexercisestheinvestorfunctionforthestate-ownedenterpriseswithintheauthorizedscopeaccordingtolaw.Theregisteredcapitaloftheparentcompanyisincreasedto32.359billionyuanafterbeingapprovedbyresolutionoftheboardofdirectors,buttheindustrialandcommercialchangeisyetnotcompleted.Therefore,theCompany’sultimatecontrollerisShenzhenInvestmentHoldingsCo.,Ltd.
2.SubsidiariesoftheCompany
DetailsrefertotheNoteX-9,Interestinthesubsidiary
3.InformationonthejointventuresandassociatedenterprisesoftheCompany
DetailsrefertotheNoteX-9,InterestsinjointventuresorassociatesInformationonotherjointventureandassociatedenterpriseofoccurringrelatedpartytransactionswiththeCompanyinreportingperiod,orformbalanceduetorelatedpartytransactionsinpreviousperiod:
None
4.OtherRelatedpartiesinformation
| Otherrelatedparty | RelationshiptotheCompany |
| ShenzhenXinfangKnittingCo.,Ltd. | TheCompany'sshareholdingcompanyandthechairmanofthecompanyaretheemployeesoftheCompany |
| ShenzhenDailishiUnderwearCo.,Ltd. | TheCompany'sshareholdingcompanyandthechairmanofthecompanyaretheemployeesoftheCompany |
| HengmeiPhotoelectricCo.,Ltd. | ThecontrollingpartyofSAPOShareholder |
| ShenzhenShentouPropertyDevelopmentCo.,Ltd. | Awholly-ownedsubsidiaryoftheparentcompany |
| ShenzhenInvestmentBuildingHotelCo.,Ltd. | Awholly-ownedsubsidiaryoftheparentcompanyAwholly-owned-subsidiaryoftheparentcompany |
| Awholly-ownedsubsidiaryoftheparentcompanyAwholly-ownedsubsidiaryoftheparentcompany | |
| ShenzhenSEGLongyanEnergyTechnologyCo.,Ltd. | Awholly-ownedsubsidiaryoftheparentcompanyAwholly-ownedsubsidiaryoftheparentcompany |
5.Relatedtransactions.
（1）RelatedtransactionsonpurchasinggoodsandreceivingservicesAcquisitionofgoodsandreceptionoflaborservice
InRMB
| Relatedparty | Content | Occurredcurrentterm | Tradinglimitapproved | Overthetradinglimitornot | Occurredinpreviousterm |
| ShenzhenSEGLongyanEnergyTechnologyCo.,Ltd. | Buyelectricity | 540,788.97 | 1,600,000.00 | No | 0.00 |
| HengmeiPhotoelectricCo.,Ltd. | Buyopticalfilm | 3,680,715.63 | 15,000,000.00 | Mo | 0.00 |
| HengmeiPhotoelectricCo.,Ltd. | BuyRTPOEMservices | 834,265.74 | 14,000,000.00 | No | 0.00 |
Saleofgoods
InRMB
| Relatedparty | Contentofrelatedpartytransaction | Amountincurredthisyear | Amountincurredlastyear |
| HengmeiPhotoelectricCo.,Ltd. | Polarizer | 4,744,631.12 | 0.00 |
| ShenzhenShentouPropertyDevelopmentCo.,Ltd. | Textile | 54,991.15 | 0.00 |
| ShenzhenInvestmentBuildingHotel | Textile | 40,614.16 | 0.00 |
| Co.,Ltd. | |||
| ShenzhenInvestmentBuildingPropertyManagementCo.,Ltd. | Textile | 26,247.79 | 0.00 |
| ShenzhenInvestmentHoldingsCo.,Ltd | Textile | 15,371.68 | 0.00 |
RelatedtransactionsonsalegoodsandreceivingservicesNone
(2)Relatedtrusteeship/contractNone
(3)InformationofrelatedleaseNone
(4)Related-partyguaranteeNone
(5)Inter-banklendingofcapitalofrelatedparties：
InRMB
| Relatedparty | Amount | Startdate | Expiringdate | Note |
| Borrowingfund： | ||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 3,806,454.17 | July30,2019 | July30,2023 | Theannuallendinginterestrateis0.30% |
| Loaned | ||||
(6)RelatedpartyassettransferanddebtrestructuringNone
(7)Rewardsforthekeymanagementpersonnel
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Rewardsforthekeymanagementpersonnel | 2,653,076.00 | 3,523,165.00 |
(8)OtherrelatedtransactionsNone
6.Receivablesandpayablesofrelatedparties
（1）Receivables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning | ||
| BalanceofBook | BalanceofBook | BalanceofBook | BaddebtProvision | ||
| Accountreceivable | ShenzhenInvestmentHoldingsCo.,Ltd | 17,370.00 | 0.00 | 0.00 | 0.00 |
| OtherAccountreceivable | ShenzhenDailishiUnderwearCo.,Ltd. | 550,000.00 | 27,500.00 | 1,100,000.00 | 58,850.00 |
（2）Payables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning |
| Otherpayable | YehuiInternationalCo.,Ltd. | 1,124,656.60 | 1,124,656.60 |
| Otherpayable | ShenzhenChanglianfaPrinting&dyeingCo.,Ltd. | 2,023,699.95 | 2,023,699.95 |
| Otherpayable | ShenzhenGuanhuaPrinting&dyeingCo.,Ltd. | 3,806,454.17 | 3,806,454.17 |
| Otherpayable | ShenzhenXinfangKnittingCo.,Ltd. | 244,789.85 | 244,789.85 |
| Otherpayable | ShenzhenInvestmentHoldingsCo.,Ltd | 0.00 | 643,987.04 |
7.RelatedpartycommitmentNone
8.OtherNoneXIII.Sharepayment
1.Overallsituationofsharepayment
□Applicable√Notapplicable
2.Equity-settledshare-basedpayment
□Applicable√Notapplicable
3.TheStockpaymentsettledbycash
□Applicable√Notapplicable
4.ModificationandterminationofthestockpaymentNone
5.OtherNoneXIV.Commitments
1.SignificantcommitmentsSignificantcommitmentsatbalancesheetdate
(1)Capitalcommitment
InRMB
| Items | Amountattheendofthisyear | Amountattheendoflastyear |
| Contractedbutnotrecognizedinthefinancialstatements | ||
| Commitmenttopurchaseandbuildlong-termassets | 9,826,665.40 | 3,761,094.00 |
2.Contingency
(1)Significantcontingencyatbalancesheetdate
None
(2)TheCompanyhavenosignificantcontingencytodisclose,alsoshouldbestatedNone
3.OtherNoneXV.Eventsafterbalancesheetdate
1.SignificanteventshadnotadjustedNone
2.ProfitdistributionNone
3.SalesreturnNone
4.NotesofothersignificanteventsNoneXVI.Othersignificantevents
1.CorrectionoftheaccountingerrorsinthepreviousperiodNone
2.LiabilitiesrestructuringNone
3.ReplacementofassetsNone
4.PensionplanNone
5.DiscontinuingoperationNone
6.Segmentinformation
(1)BasisfordeterminingthereportingsegmentsandaccountingpolicyTheCompanydeterminesitsoperatingdivisionsbasedonitsinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.Basedontheoperatingdivisions,theCompanyconfirmsthreereportingdivisions,namelytextiles,polarizer,tradeandpropertyleasing.Divisionalreportinginformationisdisclosedinaccordancewiththeaccountingpoliciesandmeasurementstandardsadoptedbyeachdivisionwhenreportingtothemanagement.Thesemeasurementbasisareconsistentwiththeaccountingandmeasurementbasisforfinancialstatementpreparation.
（2）Financialinformationofthereportdivision
InRMB
| Items | Polarizer | Textile | Propertyleaseandother | Offsetbetweendivisions | Total |
| Operatingincome | |||||
| Including:revenuefromforeigntransaction | 1,412,410,148.66 | 56,093,359.66 | 21,592,161.23 | 0.00 | 1,490,095,669.55 |
| Revenuefrominter-segmenttransactions | 0.00 | 1,580,122.82 | 46,476.10 | -1,626,598.92 | 0.00 |
| Totaloperatingincomeofsegment | 1,412,410,148.66 | 57,673,482.48 | 21,638,637.33 | -1,626,598.92 | 1,490,095,669.55 |
| Operatingexpenses | 1,349,302,885.40 | 40,298,941.06 | 24,372,370.21 | -1,483,826.81 | 1,412,490,369.86 |
| Operatingprofit | 38,699,455.89 | 25,336,492.52 | -3,357,160.43 | -142,772.11 | 60,536,015.87 |
| Netprofit | 36,115,184.98 | 20,124,415.57 | -3,354,455.12 | -698,340.20 | 52,186,805.23 |
| Totalassetsofsegment | 4,401,822,948.27 | 1,291,062,431.45 | 38,894,981.64 | -58,934,723.45 | 5,672,845,637.91 |
| Totalliabilitiesofsegment | 1,494,650,341.37 | 140,990,476.37 | 34,122,817.74 | -50,108,501.48 | 1,619,655,134.00 |
(3)Incasethereisnoreportingsegmentorthetotalassetsandliabilitiesofthereportingsegmentscannotbedisclosed,explainthereasonNone
（4）Othernote
None
7.Othersignificanttransactionsandmattersthatmayaffectinvestors'decisionmakingNone
8.OtherNone
XVII.NotesofmainitemsinthefinancialstatementsoftheParentCompany
1.Accountsreceivable
(1)Accountsreceivableclassifiedbycategory
InRMB
| Category | Amountinyear-end | Amountinyear-beginning | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrualofbaddebtprovisionbyportfolio | 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 |
Accrualofbaddebtprovisionbyportfolio:：
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Accrualportfolio | 18,783,540.82 | 779,276.24 | 4.15% |
| Total | 18,783,540.82 | 779,276.24 | |
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 16,298,464.82 |
| 1-2years | 946,760.00 |
| 2-3years | 1,538,316.00 |
| Total | 18,783,540.82 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalanc | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualportfolio | 713,159.25 | 66,116.99 | 0.00 | 0.00 | 0.00 | 779,276.24 |
| Accrualsingle | 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)Theactualwrite-offaccountsreceivableNone
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Closingbalance | Proportion% | BalanceofBaddebtprovision |
| Client1 | 12,780,240.15 | 68.04% | 199,497.75 |
| Client2 | 2,485,076.00 | 13.23% | 124,253.80 |
| Client3 | 1,593,487.36 | 8.48% | 83,658.09 |
| Client4 | 1,472,107.76 | 7.84% | 71,370.00 |
| Client5 | 84,420.00 | 0.45% | 4,221.00 |
| Total | 18,415,331.27 | 98.04% |
(5)AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone
2.Otheraccountsreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Otheraccountsreceivable | 14,116,168.90 | 14,132,756.62 |
| Total | 14,116,168.90 | 14,132,756.62 |
（1）Interestreceivable
1)CategoryofinterestreceivableNone
2)SignificantoverdueinterestNone
）Bad-debtprovision
□Applicable√Notapplicable
(2)Dividendreceivable
1)CategoryofDividendreceivableNone
2)Significantdividendsreceivablewithageexceeding1year
None
3)Provisionforbaddebts
□Applicable√Notapplicable
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassifiedbythenatureofaccounts
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| Internalcurrentaccount | 15,830,841.48 | 15,349,339.97 |
| Relatedpartytransactionswithintheconsolidationscope | 13,115,619.17 | 12,980,241.09 |
| Other | 330,734.21 | 1,056,701.52 |
| Sparefundsandemployeeborrowing | 65,000.00 | 0.00 |
| Depositandsecuritydeposit | 10,000.00 | 10,000.00 |
| Total | 29,352,194.86 | 29,396,282.58 |
2）Bad-debtprovision
InRMB
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2023 | 59,301.12 | 3,018.92 | 15,201,205.92 | 15,263,525.96 |
| BalanceasatJanuary1,2023incurrent | ||||
| ProvisioninCurrentYear | 27,500.00 | 0.00 | 0.00 | 27,500.00 |
| ReversalinCurrentYear | -55,000.00 | 0.00 | 0.00 | -55,000.00 |
| Balanceasat30June2023 | 31,801.12 | 3,018.92 | 15,201,205.92 | 15,236,025.96 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 3,364,804.74 |
| 1-2years | 10,707,995.02 |
| Over3years | 15,279,395.10 |
| Over5years | 15,279,395.10 |
| Total | 29,352,194.86 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbysingleitem | 15,111,246.32 | 0.00 | 0.00 | 0.00 | 0.00 | 15,111,246.32 |
| Accrualofbaddebtprovisionbyportfolio: | 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 |
Wherethesignificantamountoftheprovisionforbaddebtrecoveredorreversed:None
4)AccountsreceivableactuallywrittenoffinthereportingperiodNone
5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Unitname | Paymentnature | Year-endbalanceofotherreceivables | Aging | Proportionoftotalyear-endbalanceofotherreceivables(%) | Year-endbalanceofcreditlossprovision |
| Client1 | Internalborrowingandinterest | 13,115,619.17 | Over1-5years | 44.68% | 0.00 |
| Client2 | Unitaccount | 11,389,044.60 | Over5years | 38.80% | 11,389,044.60 |
| Client3 | Unitaccount | 1,800,000.00 | Over5years | 6.13% | 1,800,000.00 |
| Client4 | Unitaccount | 1,018,295.37 | Over5years | 3.47% | 1,018,295.37 |
| Client5 | Unitaccount | 592,420.00 | Over5years | 2.02% | 592,420.00 |
| Total | 27,915,379.14 | 95.10% | 14,799,759.97 |
6)AccountsreceivableinvolvedwithgovernmentsubsidiesNone
7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableNone
3.Long-termequityinvestment
InRMB
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Investmentsinsubsidiaries | 1,974,532,127.39 | 16,582,629.30 | 1,957,949,498.09 | 1,974,532,127.39 | 16,582,629.30 | 1,957,949,498.09 |
| Investmentsinassociatesandjointventures | 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）Investmenttothesubsidiary
InRMB
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||
| Addinvestment | Other | ||||||
| SAPOPhotoelectric | 1,910,247,781.94 | 0.00 | 0.00 | 0.00 | 0.00 | 1,910,247,781.94 | 14,415,288.09 |
| ShenzhenLisiIndustrialDevelopmentCo.,Ltd. | 8,073,388.25 | 0.00 | 0.00 | 0.00 | 0.00 | 8,073,388.25 | 0.00 |
| ShenzhenBeautyCentrutyGarmentCo.,Ltd. | 16,598,166.34 | 0.00 | 0.00 | 0.00 | 0.00 | 16,598,166.34 | 2,167,341.21 |
| ShenzhenHuaqiangHotal | 15,489,351.08 | 0.00 | 0.00 | 0.00 | 0.00 | 15,489,351.08 | 0.00 |
| ShenfangPropertyManagementCo.,Ltd. | 1,713,186.55 | 0.00 | 0.00 | 0.00 | 0.00 | 1,713,186.55 | 0.00 |
| ShenfangSungangPropertyManagementCo.,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）Investmenttojointventuresandassociatedenterprises
InRMB
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Addinvestment | Decreasedinvestment | Gain/lossofInvestment | Adjustmentofothercomprehensiveincome | Otherequitychanges | Declarationofcashdividendsorprofit | Withdrawnimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,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.Associatedenterprises | |||||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,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 |
| YehuiInternationalCo., | 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）OthernoteNone
4.BusinessincomeandBusinesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| IncomefromMainBusiness | 39,239,619.43 | 4,156,707.01 | 19,836,395.33 | 3,883,135.15 |
| OtherBusinessincome | 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-relatedinformation:
InRMB
| Type | Propertymanagement | Total |
| Typesofgoods | 39,239,619.43 | 39,239,619.43 |
| Including | ||
| Propertyleasemanagementandothers | 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 |
Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:
Attheendofthereportingperiod,theincomeamountcorrespondingtotheperformanceobligationsthathavebeensignedbutnotfulfilledorcompletedis0.00yuan.Amongthem,RMB0.00isexpectedtoberecognizedasrevenuein0year,RMB0.00isexpectedtoberecognizedasrevenuein0year,andRMB0.00isexpectedtoberecognizedasrevenuein0year.
5.Investmentincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Long-termequityinvestmentreturnsaccountedforbyequitymethod | -2,111,260.03 | 1,658,532.04 |
| Investmentincomeoftradingfinancialassetsduringtheholdingperiod | 8,906,611.67 | 8,967,680.80 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 906,000.00 | 708,000.00 |
| Total | 7,701,351.64 | 11,334,212.84 |
6.OtherNoneXVIII.Supplementinformation
1.Particularsaboutcurrentnon-recurringgainsandloss
√Applicable□Notapplicable
InRMB
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss | 321.08 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 19,369,307.55 | |
| Othernon-businessincomeandexpendituresotherthantheabove | -2,636,193.26 | Mainlyforqualitycompensation |
| Less:Influencedamountofincometax | 2,504,189.66 | |
| Influencedamountofminorshareholders’equity(aftertax) | 5,609,409.35 | |
| Total | 8,619,836.36 | -- |
Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition
□Applicable√NotapplicableExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-ExtraordinaryGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.Returnonnetassetandearningspershare
| Profitofreportperiod | Weightedaveragereturnsequity(%) | Earningspershare | |
| Basicearningspershare(RMB/share） | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletotheCommonstockshareholdersofCompany. | 1.27% | 0.0717 | 0.0717 |
| NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss. | 0.97% | 0.0547 | 0.0547 |
3.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
（1）SimultaneouslypursuanttobothChineseaccountingstandardsandinternationalaccountingstandardsdisclosedinthefinancialreportsofdifferencesinnetincomeandnetassets.
□Applicable□√Notapplicable
（2）DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable□√Notapplicable
(3).Explanationofthereasonsforthedifferencesinaccountingdataunderdomesticandforeignaccountingstandards.Ifthedatathathasbeenauditedbyanoverseasauditinstitutionisadjustedfordifferences,thenameoftheoverseasinstitutionshouldbeindicatedNone
4.Other
None
TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd.
August24,2023