Shenzhen Textile (Holdings) Co., Ltd.
The First Quarterly Report 2019
April 2019
1 Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Other directors attending the Meeting for annual report deliberation except for the followed:
| Name of director absent | Title for absent director | Reasons for absent | Attorney |
| Zhu Jun | Chairman | Working reason | Zhu Meizhu |
II. Basic Information of the Company（1）Main financial data and financial indexIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √No
In RMB
| This period | Same period of last year | Changes of this period over same period of last year（％） | |
| Operating income（RMB） | 592,839,958.12 | 221,307,388.08 | 167.88% |
| Net profit attributable to the shareholders of the listed company（RMB） | 10,381,938.06 | 5,616,717.00 | 84.84% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | 7,034,190.76 | -4,641,384.38 | 251.55% |
| Cash flow generated by business operation, net（RMB） | 23,567,172.13 | -35,263,573.85 | 166.83% |
| Basic earning per share(RMB/Share) | 0.0203 | 0.0110 | 84.55% |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.0203 | 0.0110 | 84.55% |
| Weighted average ROE(%) | 0.43% | 0.23% | 0.20% |
| End of this period | End of last period | Changes of this period-end over same period-end of last year(%) | |
| Gross assets（RMB） | 4,504,910,782.68 | 4,619,203,416.79 | -2.47% |
| Net assets attributable to the shareholders of the listed company（RMB） | 2,532,932,438.75 | 2,373,329,991.86 | 6.72% |
| End of this period | End of last period | Changes of this period-end over same period-end of last year(%) |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -638.80 |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 5,552,132.00 | |
| Other non-operating income and expenditure except for the aforementioned items | 3,080.57 | |
| Less: Amount of influence of income tax | 25,005.06 | |
| Amount of influence of minority interests（After tax） | 2,181,821.41 | |
| Total | 3,347,747.30 | -- |
II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and theShares Held by Top Ten Common Shareholders
In shares
| Total number of common shareholders at the period-end | 35,689 | Total preference shareholders with the voting power recovered at the end of the reporting period(if any) | 0 | |||
| Shares held by the top 10 shareholders | ||||||
| Shareholder name | Properties of shareholder | Share proportion % | Quantity | Amount of tradable shares with Conditional held | Pledging or freezing | |
| Status of the shares | Quantity | |||||
| Shenzhen Investment Holdings Co., Ltd. | State-owned legal person | 45.78% | 234,069,436 | 0 | ||
| Shenzhen Shenchao Technology Investment Co., Ltd. | State-owned Legal person | 3.15% | 16,129,032 | 0 | ||
| Sun Huiming | Domestic Nature person | 0.63% | 3,224,767 | 0 | ||
| Li Songqiang | Domestic Nature person | 0.56% | 2,873,078 | 0 | ||
| Zheng Junsheng | Domestic Nature person | 0.36% | 1,830,000 | 0 | ||
| Kuang Guowei | Domestic Nature person | 0.28% | 1,453,000 | 0 | ||
| Hong Fan | Domestic Nature person | 0.26% | 1,328,900 | 0 | ||
| Zhu Ye | Domestic Nature person | 0.22% | 1,134,145 | 0 | ||
| Li Zengmao | Domestic Nature person | 0.22% | 1,101,200 | 0 | ||
| Xiong Yan | Domestic Nature person | 0.20% | 1,000,000 | 0 | ||
| Shareholding of top 10 shareholders of unrestricted shares | ||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the | Share type | ||||
| reporting period | Share type | Quantity | |
| Shenzhen Investment Holdings Co., Ltd. | 234,069,436 | RMB Common shares | 234,069,436 |
| Shenzhen Shenchao Technology Investment Co., Ltd. | 16,129,032 | RMB Common shares | 16,129,032 |
| Sun Huiming | 3,224,767 | Foreign shares placed in domestic exchange | 3,224,767 |
| Li Songqiang | 2,873,078 | RMB Common shares | 2,873,078 |
| Zheng Junsheng | 1,830,000 | RMB Common shares | 1,830,000 |
| Kuang Guowei | 1,453,000 | RMB Common shares | 1,453,000 |
| Hong Fan | 1,328,900 | RMB Common shares | 1,328,900 |
| Zhu Ye | 1,134,145 | RMB Common shares | 1,134,145 |
| Li Zengmao | 1,101,200 | RMB Common shares | 1,101,200 |
| Xiong Yan | 1,000,000 | RMB Common shares | 1,000,000 |
| Related or acting-in-concert parties among shareholders above | Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the Company did not whether there is relationship between the top ten shareholders holding non-restricted negotiable shares and between the top ten shareholders holding non-restricted negotiable shares and the top 10 shareholders or whether they are persons taking concerted action defined in Regulations on Disclosure of Information about Shareholding of Shareholders of Listed Companies. | ||
| Explanation on shareholders participating in the margin trading business(if any ) | The Company Shareholder Li Songqiang holds 2,872,653 shares of the Company through stock account with credit transaction ; The Company Shareholder Zhu Ye holds1,031,945 shares of the Company through stock account with credit transaction . | ||
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of thereport period
□ Applicable √Not applicable
III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, aswell as reasons for the changes
√ Applicable □ Not applicable
1.The ending balance of Construction in process Increased by RMB 10.2946 million and 65.90% over beginningof period，Mainly because of the current investment increase in the line 7 of polarizer;2.The ending balance of Short-term loans decreased by RMB 285.5699 million and 69.39% over beginning ofperiod，Mainly because that the current repayment of short-term loans leads to a decrease in the
balance of short-term loans;
3.Operation revenue in current period increased by RMB371.5326 million and 167.88% year on year，Mainly
because that current settlement of trade transactions leads to income increases;
4. Business costs in current period increased by RMB351.4396 million and 174.49% year on year，Mainly
because that current settlement of trade transactions leads to income increases;
5. Asset impairment loss in current period increased by RMB 3.2958 million and 112.40% year on year,
Mainly because that withdrawing inventory falling price reserves increase;
6.Investment gains in current period decreased by RMB 12.2767 million and 94.52% year on year, Mainly
because that there is no trust investment in the period, and the investment income decreases
accordingly;7.Operating income in current period increased by RMB 5.9472 million and 84.19 % year on year, Mainlybecause that current settlement of trade transactions affects profit of the period;8. The net cash flows from operating activities in current period increased by RMB 58.8307 million and 166.83%year on year，Mainly because that the payment for goods has increased compared with last year;9. The net cash flows from financing activities in current period decreased by RMB297.7814 million and
2,991.13% year on year，Mainly because that repayment of bank loans has increased compared with
the same period;
10. The net cash flows from investment activities in current period decreased by RMB 413.4722million and
96.06% year on year，Mainly because that the amount of funds recovered from matured finance
products in the current period has decreased compared with the previous period.
II. The progress of significant events and influence, as well as the analysis and explanation on resolvingproposal.√ Applicable □ Not applicable(1) Progress in Investment and Construction of Polarizer Industrialization Project (Line 7) for Ultra-Large-SizeTelevisionDuring the reporting period, the project of Line 7 has completed the signing of construction contracts forextension machines, AGV, coated pressure sensors and wastewater treatment equipment, and the civil engineeringconstruction of Line 7 began on April 18, 2019. As of March 31, 2019, the project of Line 7 has actually paid354.307 million yuan for investment (157.627 million yuan for raising funds, 196.675 million yuan for self-ownedfunds and government funds).(2) The termination of Shengbo Optoelectronic Company's introduction of strategic investorsThe company held the Twelfth Meeting of the seventh board of directors on June 1, 2018. It considered and
adopted the Bill on Shenzhen Shengbo Photoelectric Technology Co., Ltd. to increase capital and share tointroduce strategic investors. It agreed that Shengbo Photoelectric Company, a subsidiary company, wouldincrease capital and share by adding capital and taking the results of assets assessment as the basis, and inaccordance with the regulation of state-owned assets, conduct joint property rights transactions in Shenzhen. Nomore than five strategic investors are publicly recruited and the final strategic investors are determined throughcompetitive negotiations. See Bulletin No. 2018-24 of Giant Tide Information Network(http://www.cninfo.com.cn).During the promotion of Shengbo Photoelectric Company's introduction of strategic investors, the companyactively consulted with interested investors to increase capital. However, due to the changes of domesticinvestment environment and financial policy, the capital of financial market tends to be tense, investors'investmentdecisions tend to be cautious, and the cooperation conditions of intending investors, the company continued topromote Shengbo Photoelectric Company's introduction of capital expansion. Strategic investors are faced withgreater uncertainty. In view of the fact that the company has not yet reached an agreement with any interestedinvestors on specific capital increase cooperation, and taking into account the above factors, the company held the16th meeting of the seventh board of directors on January 29, 2019, and considered and adopted the Bill on theSubsidiary Shengbo Photoelectric Technology Co., Ltd. to terminate capital increase and share increase tointroduce strategic investors. The company agreed to terminate Shengboguang, the subsidiary. The introduction ofstrategic investor issues in electricity capital increase and stock expansion. See Bulletin No. 2019-02 and No.2019-03 of Juchao Information Network (http://www.cninfo.com.cn) for details.(3) Matters relating to capital increase and related transactions of Shenzhen Guanhua Printing and Dyeing Co.,Ltd.
In order to smooth the equity relationship between Shenzhen Guanhua Printing and Dyeing Co., Ltd. andGuanhua Building, the company and Qiaohui Industrial Co., Ltd. signed an equity transfer agreement to transfer5.16% of the shares of Shenzhen Guanhua Printing and Dyeing Co., Ltd. and completed the equity transfer. Afterthe transfer, the company and Qiaohui Industrial Co., Ltd. hold 50.16% and 49.84% of the shares of ShenzhenGuanhua Printing and Dyeing Co., Ltd. On February 28, 2019, in order to improve the investment obligations ofthe shareholders of Shenzhen Guanhua Printing and Dyeing Co., Ltd., the company and Qiaohui Industrial Co.,Ltd. increased the capital of Shenzhen Guanhua Printing and Dyeing Co., Ltd. according to the proportion of50.16% and 49.84% of the rights and interests occupied by the buildings of Guanhua Building, respectively, andthe corresponding evaluation value of the buildings of Guanhua Building was 49.9351 million yuan and 49.616million yuan. Shenzhen Guanhua Printing and Dyeing Co., Ltd. signed the Capital Increase Agreement withQiaohui Industry Co., Ltd. and Shenzhen Guanhua Printing and Dyeing Co., Ltd. After the capital increase iscompleted, Shenzhen Guanhua Printing and Dyeing Co., Ltd. is an enterprise jointly controlled by the companyand Qiaohui Industry Co., Ltd. See the announcement of Juchao Information Network (http://www.cninfo.com.cn)Co., Ltd. 2019-07. Up to the disclosure date of this report, Shenzhen Guanhua Printing and Dyeing Co., Ltd. hasobtained the "Real Property Registration Certificate" of Guanhua Building, and the registration procedures for thechange of shareholding rights and the increase of registered capital have been completed.
| Announcement | Date of disclosure | Website for disclosure |
| Matters on the end of capital and share increase and introduction of strategic investors to the subsidiary SAPO Photoelectric | January 30,2019 | http//www.cninfo.com.cn. Announcement No.2019-03 |
| Matters on the capital increase and related | March 1, 2019 | http//www.cninfo.com.cn. Announcement |
| transactions of the joint stock company, Shenzhen Guanhua Printing & Dyeing Co., Ltd. | No.2019-07 |
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Period of commitment | Fulfillment |
| Commitment on share reform | Shenzhen Investment Holdings Co., Ltd. | Share reduction commitment | As Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of the company, committed when the restricted-for-sale shares from the shares restructuring were listed for circulation in the market: i. if they plan to sell the shares through the securities exchange system in the future, and the decrease of the shares they hold reaches 5% within 6 months after the first decrease, they will disclose an announcement indicating the sale through the company within two trading days before the first decrease; ii. They shall strictly observe the “Guidelines on Transfer of Restricted-for-sale Original Shares of Listed Companies” and the provisions of the relevant business principles of Shenzhen Stock Exchange. | August 4, 2006 | Sustained and effective | Under Fulfillment |
| Commitment in the acquisition report or the report on equity changes | ||||||
| Commitment made upon the assets replacement | ||||||
| Commitments made upon issuance | Shenzhen Investment Holdings Co., Ltd. | Commitments on horizontal competitio | Shenzhen Investment Holdings Co., Ltd. signed a “Letter of Commitment and Statement on Horizontal Competition Avoidance” when the company issued non-public stocks in 2009. | October 9, 2009 | Sustained and effective | Under Fulfillment |
| n, related transaction and capital occupation | Pursuant to the Letter of Commitment and Statement, Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiary, subsidiaries under control or any other companies that have actual control of it shall not be involved in the business the same as or similar to those Shenzhen Textile currently or will run in the future, or any businesses or activities that may constitute direct or indirect competition with Shenzhen Textile; if the operations of Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control or other companies that have actual control of it compete with Shenzhen Textile in the same industry or contradict the interest of the issuer in the future, Shenzhen Investment Holdings Co., Ltd. shall urge such companies to sell the equity, assets or business to Shenzhen Textile or a third party; when the horizontal competition may occur due to the business expansion concurrently necessary for Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control or other companies that have actual control of it and Shenzhen Textile, Shenzhen Textile shall have priority. | ||||
| Shenzhen Investment Holdings Co., Ltd. | Commitments on horizontal competition, related transaction and capital occupation | The commitments during the period non-public issuance in 2012: 1. Shenzhen Investment Holdings, as the controlling shareholder of Shenzhen Textile, currently hasn't the production and business activities of inter-industry competition with Shenzhen Textile or its share-holding subsidiary. 2. Shenzhen Investment Holdings and its share-holding subsidiaries or other enterprises owned the actual control rights can't be directly and indirectly on behalf of any person, company or unit to engage in the same or similar business in any districts in the future by the form of share-holding, equity participation, joint venture, cooperation, partnership, contract, lease, etc., and ensure not to use the controlling shareholder's status to damage the legitimate rights and interests of Shenzhen Textile and other shareholders, or to gain the additional benefits. 3. If there will be the situation of inter-industry | July 14, 2012 | Sustained and effective | Under Fulfillment |
| competition with Shenzhen Textile for Shenzhen Investment Holdings and its share-holding subsidiaries or other enterprises owned the actual control rights in the future, Shenzhen Investment Holdings will promote the related enterprises to avoid the inter-industry competition through the transfer of equity, assets, business and other ways. 4. Above commitments will be continuously effective and irrevocable during Shenzhen Investment Holdings as the controlling shareholder of Shenzhen Textile or indirectly controlling Shenzhen Textile. | ||||||
| Equity incentive commitment | Shenzhen Textile(Holdings) Co., Ltd. | Other commitment | 1.The company undertakes not to provide loans, loan guarantees, and any other forms of financial assistance to the incentive objects for obtaining the restricted stocks in the incentive plan; 2. The company undertakes that there is no circumstance that the stock incentive shall be prohibited as stipulated in the provisions of Article 7 of the “Measures for the Management of Stock Incentives of Listed Companies”. | November 27,2017 | December 27,2021 | Under Fulfillment |
| Other commitments made to minority shareholders | ||||||
| Executed timely or not? | Yes | |||||
| If the commitments failed to complete the execution when expired, should specifically explain the reasons of unfulfillment and the net stage of the working plan | Not applicable | |||||
V. Investment in securities
□ Applicable √ Not applicableNo securities investment in period.
VI. Investments in derivatives
□ Applicable √ Not applicableThere is no derivative investment during the report period.VII. The registration form of acceptance of investigation, communication and interview in the reportperiod for future reference□ Applicable √ Not applicableThe Period has no research, communication and written inquiry from the investors in the report period.VIII. Outward Guarantee against the Regulations□ Applicable √Not applicableThe Company has no external guarantee get out of the line in the PeriodIX. Controlling shareholder and its related parties occupying non-business capital of the listed company□ Applicable √Not applicableThere are no controlling shareholder and its related parties occupying non-business capital of the listed companyin Period
IV. Financial StatementI. Financial statement1. Consolidated balance sheetPrepared by: Shenzhen Textile (Holdings) Co., Ltd.
In RMB
| Items | March 31,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 860,326,997.97 | 1,141,759,374.60 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 540,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable & account receivable | 548,442,532.55 | 529,340,447.65 |
| Including： Notes receivable | 24,452,890.12 | 886,432.06 |
| Account receivable | 523,989,642.43 | 528,454,015.59 |
| Prepayments | 235,555,949.47 | 229,028,791.15 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 13,155,345.66 | 14,846,896.50 |
| Including：Interest receivable | 3,902,071.05 | 5,589,704.44 |
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 417,089,636.31 | 439,752,718.77 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 86,425,394.98 | 639,797,959.30 |
| Total of current assets | 2,700,995,856.94 | 2,994,526,187.97 |
| Non-current assets： |
| Loans and payment on other’s behalf disbursed | ||
| Debt investment | ||
| Available for sale of financial assets | 45,373,784.87 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 32,528,437.45 | 32,952,085.66 |
| Other equity instruments investment | 243,903,927.22 | |
| Other non-current financial assets | ||
| Property investment | 166,052,770.24 | 167,997,941.98 |
| Fixed assets | 960,579,366.16 | 987,876,247.55 |
| Construction in progress | 25,915,905.51 | 15,621,286.64 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 37,527,987.70 | 37,880,815.85 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 1,762,633.02 | 1,486,209.03 |
| Deferred income tax asset | 6,191,239.43 | 6,036,198.23 |
| Other non-current asset | 329,452,659.01 | 329,452,659.01 |
| Total of non-current assets | 1,803,914,925.74 | 1,624,677,228.82 |
| Total of assets | 4,504,910,782.68 | 4,619,203,416.79 |
| Current liabilities | ||
| Short-term loans | 125,952,243.71 | 411,522,111.40 |
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable & account payable | 223,665,516.60 | 180,239,452.90 |
| Advance receipts | 41,025,628.99 | 120,702,951.37 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 23,997,639.28 | 32,506,267.08 |
| Tax payable | 27,864,165.63 | 7,745,128.99 |
| Other account payable | 219,868,921.58 | 229,015,279.98 |
| Including：Interest payable | 38,699,208.95 | |
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract Liabilities | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 40,000,000.00 | 40,000,000.00 |
| Other current liability | ||
| Total of current liability | 702,374,115.79 | 1,021,731,191.72 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Expected liabilities | ||
| Deferred income | 134,874,431.51 | 137,991,698.33 |
| Deferred income tax liability | 49,632,535.58 | |
| Other non-current liabilities | ||
| Total non-current liabilities | 184,506,967.09 | 137,991,698.33 |
| Total of liability | 886,881,082.88 | 1,159,722,890.05 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instruments | ||
| Including：preferred stock |
| Sustainable debt | ||
| Capital reserves | 1,865,716,983.63 | 1,865,716,983.63 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 150,559,717.24 | 1,339,208.41 |
| Surplus reserves | 80,004,803.23 | 80,004,803.23 |
| Common risk provision | ||
| Retained profit | -47,392,535.35 | -57,774,473.41 |
| Total of owner’s equity belong to the parent company | 2,532,932,438.75 | 2,373,329,991.86 |
| Minority shareholders’ equity | 1,085,097,261.05 | 1,086,150,534.88 |
| Total of owners’ equity | 3,618,029,699.80 | 3,459,480,526.74 |
| Total of liabilities and owners’ equity | 4,504,910,782.68 | 4,619,203,416.79 |
| Items | March 31,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 73,507,776.59 | 85,416,567.74 |
| Transactional financial assets | 520,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable & account receivable | 264,304.35 | 541,948.21 |
| Including：Notes receivable | ||
| Account receivable | 264,304.35 | 541,948.21 |
| Prepayments | 19,288.46 | 17,436.00 |
| Other account receivable | 12,880,829.88 | 13,856,382.02 |
| Including：Interest receivable | 3,612,997.28 | 4,974,799.47 |
| Dividend receivable | ||
| Inventories | ||
| Contract assets | ||
| Assets held for sales |
| Non-current asset due within 1 year | ||
| Other current asset | 500,000,000.00 | |
| Total of current assets | 606,672,199.28 | 599,832,333.97 |
| Non-current assets： | ||
| Debt investment | ||
| Available for sale of financial assets | 15,373,784.87 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 1,996,752,204.06 | 1,997,175,852.27 |
| Other equity instruments investment | 201,938,936.05 | |
| Other non-current financial assets | ||
| Property investment | 159,254,652.64 | 161,053,628.71 |
| Fixed assets | 26,125,475.97 | 26,565,399.91 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 912,142.23 | 1,012,374.75 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 5,819,498.51 | 5,818,069.48 |
| Other non-current asset | ||
| Total of non-current assets | 2,390,802,909.46 | 2,206,999,109.99 |
| Total of assets | 2,997,475,108.74 | 2,806,831,443.96 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable & account payable | 411,743.57 | 411,743.57 |
| Advance receipts | 639,024.58 | 639,024.58 |
| Contract Liabilities | ||
| Employees’ wage payable | 6,769,698.33 | 9,760,306.51 |
| Tax payable | 6,171,182.87 | 5,494,627.33 |
| Other account payable | 138,108,180.68 | 141,746,352.67 |
| Including：Interest payable | ||
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 152,099,830.03 | 158,052,054.66 |
| Non-current liabilities： | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Expected liabilities | ||
| Deferred income | 675,000.00 | 700,000.00 |
| Deferred income tax liability | 46,641,287.79 | |
| Other non-current liabilities | ||
| Total non-current liabilities | 47,316,287.79 | 700,000.00 |
| Total of liability | 199,416,117.82 | 158,752,054.66 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,599,025,454.96 | 1,599,025,454.96 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 141,585,973.86 | 1,339,208.41 |
| Surplus reserves | 80,004,803.23 | 80,004,803.23 |
| Retained profit | 493,399,288.87 | 483,666,452.70 |
| Total of owners’ equity | 2,798,058,990.92 | 2,648,079,389.30 |
| Total of liabilities and owners’ equity | 2,997,475,108.74 | 2,806,831,443.96 |
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 592,839,958.12 | 221,307,388.08 |
| Including：Business income | 592,839,958.12 | 221,307,388.08 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 586,092,361.89 | 231,890,134.62 |
| Including：Business cost | 552,851,788.11 | 201,412,228.67 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 1,880,024.43 | 1,875,292.08 |
| Sales expense | 2,328,903.70 | 1,836,791.12 |
| Administrative expense | 18,595,131.28 | 20,787,649.63 |
| R & D costs | 8,758,585.41 | 3,858,889.94 |
| Financial expenses | -4,550,101.37 | -812,983.29 |
| Including：Interest expense | 2,542,219.74 | 1,106,001.36 |
| Interest income | 7,184,494.24 | 5,834,428.82 |
| Asset impairment loss | 6,228,030.33 | 2,932,266.47 |
| Credit impairment loss | ||
| Add：Other income | 5,552,132.00 | 4,658,570.00 |
| Investment gain（“-”for loss） | 711,449.73 | 12,988,132.73 |
| Including: investment gains from affiliates | 253,449.73 | 189,606.88 |
| Gains from currency exchange | ||
| Net exposure hedging income |
| Changing income of fair value | ||
| Income on disposal of assets | ||
| III. Operational profit（“-”for loss） | 13,011,177.96 | 7,063,956.19 |
| Add ：Non-operational income | 3,080.57 | 61,695.20 |
| Less: Non-operating expense | 638.80 | 144,103.41 |
| IV. Total profit(“-”for loss) | 13,013,619.73 | 6,981,547.98 |
| Less：Income tax expenses | 3,441,962.36 | 3,228,986.18 |
| V. Net profit | 9,571,657.37 | 3,752,561.80 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 9,571,657.37 | 3,752,561.80 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| Net profit attributable to the owners of parent company | 10,381,938.06 | 5,616,717.00 |
| Minority shareholders’ equity | -810,280.69 | -1,864,155.20 |
| VI. Net after-tax of other comprehensive income | 1,844,380.73 | -1,338,011.64 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 1,844,380.73 | -1,338,011.64 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 1,521,478.67 | |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | 1,521,478.67 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 322,902.06 | -1,338,011.64 |
| 1.Other comprehensive income under the equity |
| method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair value available for sale financial assets | -709,727.75 | |
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8.Translation differences in currency financial statements | 322,902.06 | -628,283.89 |
| 9.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 11,416,038.10 | 2,414,550.16 |
| Total comprehensive income attributable to the owner of the parent company | 12,226,318.79 | 4,278,705.36 |
| Total comprehensive income attributable minority shareholders | -810,280.69 | -1,864,155.20 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.0203 | 0.0110 |
| (II)Diluted earnings per share | 0.0203 | 0.0110 |
| Items | Report period | Same period of the previous year |
| I. Revenue | 16,985,644.24 | 16,418,067.39 |
| Including：Business cost | 2,743,322.90 | 2,319,453.78 |
| Business tax and surcharge | 704,906.47 | 682,141.89 |
| Sales expense | ||
| Administrative expense | 6,038,113.39 | 6,237,078.40 |
| R & D costs | ||
| Financial expenses | -4,593,263.22 | -3,835,518.39 |
| Including：Interest expenses | ||
| Interest income | 4,588,892.26 | 3,825,014.60 |
| Asset impairment loss | 5,716.11 | -15,381.82 |
| Credit impairment loss | ||
| Add：Other income | 25,000.00 | 25,000.00 |
| Investment gain（“-”for loss） | 711,449.73 | 439,606.88 |
| Including: investment gains from affiliates | 253,449.73 | 189,606.88 |
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Income on disposal of assets | ||
| II. Operational profit（“-”for loss） | 12,823,298.32 | 11,494,900.41 |
| Add ：Non-operational income | 55,006.21 | |
| Less：Non -operational expenses | ||
| III. Total profit(“-”for loss) | 12,823,298.32 | 11,549,906.62 |
| Less：Income tax expenses | 3,090,462.15 | 2,840,074.94 |
| IV. Net profit | 9,732,836.17 | 8,709,831.68 |
| 1.Net continuing operating profit | 9,732,836.17 | 8,709,831.68 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | 1,844,380.73 | -1,338,011.64 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 1,521,478.67 | |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. |
| 3. Changes in the fair value of investments in other equity instruments | 1,521,478.67 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 322,902.06 | -1,338,011.64 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair value available for sale financial assets | -709,727.75 | |
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8.Translation differences in currency financial statements | 322,902.06 | -628,283.89 |
| 9.Other | ||
| VI. Total comprehensive income | 11,577,216.90 | 7,371,820.04 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
| Items | Report period | Same period of the previous year |
| I. Cash flows from operating activities | ||
| Cash received from sales of goods or | 537,417,923.43 | 255,065,638.60 |
| rending of services | ||
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 4,225,844.89 | 11,904,252.09 |
| Other cash received from business operation | 25,717,072.62 | 30,675,645.79 |
| Sub-total of cash inflow | 567,360,840.94 | 297,645,536.48 |
| Cash paid for purchasing of merchandise and services | 486,838,549.63 | 243,676,008.15 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee |
| and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 44,358,670.67 | 41,183,931.63 |
| Taxes paid | 7,526,108.43 | 20,200,074.43 |
| Other cash paid for business activities | 5,070,340.08 | 27,849,096.12 |
| Sub-total of cash outflow from business activities | 543,793,668.81 | 332,909,110.33 |
| Net cash generated from /used in operating activities | 23,567,172.13 | -35,263,573.85 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 808,000.00 | 999,984.00 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 13,500.00 | 2,000.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 546,287,467.47 | 515,781,261.16 |
| Sub-total of cash inflow due to investment activities | 547,108,967.47 | 516,783,245.16 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 24,070,004.42 | 137,216,482.28 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 540,000,000.00 | 810,000,000.00 |
| Sub-total of cash outflow due to investment activities | 564,070,004.42 | 947,216,482.28 |
| Net cash flow generated by investment | -16,961,036.95 | -430,433,237.12 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders |
| Cash received as loans | 47,292,713.22 | 95,971,462.72 |
| Cash received from bond placing | ||
| Other financing –related cash received | 2,449,910.31 | |
| Sub-total of cash inflow from financing activities | 49,742,623.53 | 95,971,462.72 |
| Cash to repay debts | 335,312,491.22 | 85,831,505.96 |
| Cash paid as dividend, profit, or interests | 2,256,037.46 | |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 184,487.96 | |
| Sub-total of cash outflow due to financing activities | 337,568,528.68 | 86,015,993.92 |
| Net cash flow generated by financing | -287,825,905.15 | 9,955,468.80 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -202,991.44 | -1,014,369.39 |
| V.Net increase of cash and cash equivalents | -281,422,761.41 | -456,755,711.56 |
| Add: balance of cash and cash equivalents at the beginning of term | 1,133,574,235.22 | 1,161,240,139.33 |
| VI ..Balance of cash and cash equivalents at the end of term | 852,151,473.81 | 704,484,427.77 |
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 17,791,493.02 | 16,719,611.00 |
| Tax returned | ||
| Other cash received from business operation | 3,191,898.36 | 4,054,432.86 |
| Sub-total of cash inflow | 20,983,391.38 | 20,774,043.86 |
| Cash paid for purchasing of merchandise and services | 713,323.12 | 860,394.62 |
| Cash paid to staffs or paid for staffs | 6,956,497.78 | 5,619,694.30 |
| Taxes paid | 4,564,642.70 | 2,029,647.11 |
| Other cash paid for business activities | 1,249,003.15 | 1,775,182.86 |
| Sub-total of cash outflow from business activities | 13,483,466.75 | 10,284,918.89 |
| Net cash generated from /used in operating activities | 7,499,924.63 | 10,489,124.97 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 808,000.00 | 999,984.00 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 506,287,467.47 | |
| Sub-total of cash inflow due to investment activities | 507,095,467.47 | 999,984.00 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 6,504,183.25 | 428,575.70 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 520,000,000.00 | 10,000,000.00 |
| Sub-total of cash outflow due to investment activities | 526,504,183.25 | 10,428,575.70 |
| Net cash flow generated by investment | -19,408,715.78 | -9,428,591.70 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | ||
| Cash received from bond placing | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | ||
| Cash to repay debts |
| Cash paid as dividend, profit, or interests | ||
| Other cash paid for financing activities | ||
| Sub-total of cash outflow due to financing activities | ||
| Net cash flow generated by financing | ||
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -11,908,791.15 | 1,060,533.27 |
| Add: balance of cash and cash equivalents at the beginning of term | 85,416,567.74 | 413,700,327.95 |
| VI ..Balance of cash and cash equivalents at the end of term | 73,507,776.59 | 414,760,861.22 |
| Items | December 31,2018 | January 1,2019 | Adjustment |
| Current asset： | |||
| Monetary fund | 1,141,759,374.60 | 1,141,759,374.60 | |
| Transactional financial assets | Not applicable | 540,000,000.00 | 540,000,000.00 |
| Notes receivable & account receivable | 529,340,447.65 | 529,340,447.65 | |
| Including： Notes receivable | 886,432.06 | 886,432.06 | |
| Account receivable | 528,454,015.59 | 528,454,015.59 | |
| Prepayments | 229,028,791.15 | 229,028,791.15 | |
| Other account receivable | 14,846,896.50 | 14,846,896.50 | |
| Including：Interest receivable | 5,589,704.44 | 5,589,704.44 | |
| Dividend receivable | 439,752,718.77 | 439,752,718.77 |
| Other current asset | 639,797,959.30 | 99,797,959.30 | -540,000,000.00 |
| Total of current assets | 2,994,526,187.97 | 2,994,526,187.97 | |
| Non-current assets： | |||
| Available for sale of financial assets | 45,373,784.87 | Not applicable | -45,373,784.87 |
| Long term share equity investment | 32,952,085.66 | 32,952,085.66 | |
| Other equity instruments investment | Not applicable | 241,875,289.00 | 241,875,289.00 |
| Property investment | 167,997,941.98 | 167,997,941.98 | |
| Fixed assets | 987,876,247.55 | 987,876,247.55 | |
| Construction in progress | 15,621,286.64 | 15,621,286.64 | |
| Intangible assets | 37,880,815.85 | 37,880,815.85 | |
| Long-germ expenses to be amortized | 1,486,209.03 | 1,486,209.03 | |
| Deferred income tax asset | 6,036,198.23 | 6,036,198.23 | |
| Other non-current asset | 329,452,659.01 | 329,452,659.01 | |
| Total of non-current assets | 1,624,677,228.82 | 1,821,178,732.95 | 196,501,504.13 |
| Total of assets | 4,619,203,416.79 | 4,815,704,920.92 | 196,501,504.13 |
| Current liabilities | |||
| Short-term loans | 411,522,111.40 | 411,522,111.40 | |
| Notes payable & account payable | 180,239,452.90 | 180,239,452.90 | |
| Advance receipts | 120,702,951.37 | 120,702,951.37 | |
| Employees’ wage payable | 32,506,267.08 | 32,506,267.08 | |
| Tax payable | 7,745,128.99 | 7,745,128.99 | |
| Other account payable | 229,015,279.98 | 229,015,279.98 | |
| Non-current liability due within 1 year | 40,000,000.00 | 40,000,000.00 | |
| Total of current liability | 1,021,731,191.72 | 1,021,731,191.72 | |
| Non-current liabilities： | |||
| Deferred income | 137,991,698.33 | 137,991,698.33 | |
| Deferred income tax liabilities | 49,125,376.03 | 49,125,376.03 | |
| Total non-current liabilities | 137,991,698.33 | 187,117,074.36 | 49,125,376.03 |
| Total of liability | 1,159,722,890.05 | 1,208,848,266.08 | 49,125,376.03 |
| Owners’ equity | |||
| Share capital | 511,274,149.00 | 511,274,149.00 | |
| Capital reserves | 1,865,716,983.63 | 1,865,716,983.63 | |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 | |
| Other comprehensive income | 1,339,208.41 | 148,715,336.51 | 147,376,128.10 |
| Surplus reserves | 80,004,803.23 | 80,004,803.23 | |
| Retained profit | -57,774,473.41 | -57,774,473.41 | |
| Total of owner’s equity belong to the parent company | 2,373,329,991.86 | 2,520,706,119.96 | 147,376,128.10 |
| Minority shareholders’ equity | 1,086,150,534.88 | 1,086,150,534.88 | |
| Total of owners’ equity | 3,459,480,526.74 | 3,606,856,654.84 | 147,376,128.10 |
| Total of liabilities and owners’ equity | 4,619,203,416.79 | 4,815,704,920.92 | 196,501,504.13 |
| Items | December 31,2018 | January 1,2019 | Adjustment |
| Current asset： | |||
| Monetary fund | 85,416,567.74 | 85,416,567.74 | |
| Transactional financial assets | Not applicable | 500,000,000.00 | 500,000,000.00 |
| Notes receivable & account receivable | 541,948.21 | 541,948.21 | |
| Account receivable | 541,948.21 | 541,948.21 | |
| Prepayments | 17,436.00 | 17,436.00 | |
| Other account receivable | 13,856,382.02 | 13,856,382.02 | |
| Including：Interest receivable | 4,974,799.47 | 4,974,799.47 | |
| Other current asset | 500,000,000.00 | -500,000,000.00 | |
| Total of current assets | 599,832,333.97 | 599,832,333.97 | |
| Non-current assets： | |||
| Available for sale of financial assets | 15,373,784.87 | Not applicable | -15,373,784.87 |
| Long term share equity investment | 1,997,175,852.27 | 1,997,175,852.27 | |
| Other equity instruments | Not applicable | 199,910,297.83 | 199,910,297.83 |
| investment | |||
| Property investment | 161,053,628.71 | 161,053,628.71 | |
| Fixed assets | 26,565,399.91 | 26,565,399.91 | |
| Intangible assets | 1,012,374.75 | 1,012,374.75 | |
| Deferred income tax asset | 5,818,069.48 | 5,818,069.48 | |
| Other non-current asset | 2,206,999,109.99 | 2,391,535,622.95 | 184,536,512.96 |
| Total of non-current assets | 2,806,831,443.96 | 2,991,367,956.92 | 184,536,512.96 |
| Total of assets | |||
| Notes payable & account payable | 411,743.57 | 411,743.57 | |
| Advance receipts | 639,024.58 | 639,024.58 | |
| Employees’ wage payable | 9,760,306.51 | 9,760,306.51 | |
| Tax payable | 5,494,627.33 | 5,494,627.33 | |
| Other current liability | 141,746,352.67 | 141,746,352.67 | |
| Total of current liability | 158,052,054.66 | 158,052,054.66 | |
| Non-current liabilities： | |||
| Deferred income | 700,000.00 | 700,000.00 | |
| Deferred income tax liabilities | 46,134,128.24 | 46,134,128.24 | |
| Total non-current liabilities | 700,000.00 | 46,834,128.24 | 46,134,128.24 |
| Total of liability | 158,752,054.66 | 204,886,182.90 | 46,134,128.24 |
| Owners’ equity | |||
| Share capital | 511,274,149.00 | 511,274,149.00 | |
| Capital reserves | 1,599,025,454.96 | 1,599,025,454.96 | |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 | |
| Other comprehensive income | 1,339,208.41 | 139,741,593.13 | 138,402,384.72 |
| Surplus reserves | 80,004,803.23 | 80,004,803.23 | |
| Retained profit | 483,666,452.70 | 483,666,452.70 | |
| Total of owners’ equity | 2,648,079,389.30 | 2,786,481,774.02 | 138,402,384.72 |
| Total of liabilities and owners’ equity | 2,806,831,443.96 | 2,991,367,956.92 | 184,536,512.96 |
No.37 - Presentation of Financial Instruments (CK [2017] No.14). The Company will implement theabove-mentioned new financial accounting standards from 2019 onwards in January 1.2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases□ Applicable √ Not applicableIII. Auditor’ reportIs the First Quarterly Report be audited?□ Yes √NoThe First Quarterly report is not audited.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
April 27,2019