Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Shenzhen Textile (Holdings) Co., Ltd.
2016 Annual Report
March 2017
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee, All Directors, Supervisors and Senior executives of the
Company hereby guarantees that there are no misstatement, misleading representation or important omissions in
this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the
contents hereof.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mr.Mu Linying, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this annual report.
All the directors attended the board meeting for reviewing the Annual Report.
Concerning the forward-looking statements with future planning involvedin the Report, they do not constitute a
substantial commitment for investors, investors should be cautious with investment risks .
The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily,
Shanghai Securities News , Hongkong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）are the
media for information disclosure appointed by the Company, all information under the name of the Company
disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Definition
Refers
Terms to be defined Definition
to
Refers
Company/The Company/ Shen Textile Shenzhen Textile (Holdings) Co., Ltd
to
Refers
Articles of Association Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
to
Actual controller / National Assets Regulatory
Refers National Assets Regulatory Commission of Shenzhen Municipal People's
Commission of Shenzhen Municipal People's
to Government
Government
The Controlling shareholder/ Shenzhen Refers
Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd. to
Refers
Shenchao Technology Shenzhen Shenchao Technology Investment Co., Ltd.
to
Refers
Shengbo Optoelectronic Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
to
Refers
Jinjiang Group Hangzhou Jinjiang Group Co., Ltd.
to
Refers
Jinhang Investment Hangzhou Jinhang Equity Investment fund Partnership( LP)
to
Refers
Jinhang Investment Hangzhou Jinhang Investment Fund Partnership（LP）
to
Refers
TCL Group TCL Group Co., Ltd.
to
Refers
“CSRC” China Securities Regulatory Commission
to
Refers
Company Law Company Law of the People’s Republic of China
to
Refers
Securities Law Securities Law of the People’s Republic of China
to
Refers
The Report 2016 Annual Report
to
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
II. Basic Information of the Company and Financial index
Ⅰ.Company Information
Stock abbreviation Shen Textile A ,Shen Textile B Stock code： 000045、200045
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE （HOLDINGS） CO.,LTD
English abbreviation (If any) STHC
Legal Representative Zhu Jun
Registered address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the Registered
Address
Office Address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the office
address
Internet Web Site http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
Ⅱ.Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Mo Xiayun
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com moxy@chinasthc.com
Ⅲ. Information disclosure and placed
Newspapers selected by the Company for information Securities Times, China Securities, Shanghai Securities Daily ,Securities
disclosure Daily and Hongkong Commercial Daily.
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
The place where the Annual report is prepared and
Secretarial office of the Board
placed
Ⅳ.Changes in Registration
Organization Code 19217374-9
In July 2012, The business scope of the company is changed to \"production, textiles
processing, knitwear, clothing, upholstery fabrics, belts, trademark bands, handicrafts
(without restrictions); general merchandise, the special equipment of the textile
Changes in principal business activities industry, textile equipment and accessories, instruments, standard parts, raw textile
since listing (if any) materials, dyes, electronic products, chemical products, mechanical and electrical
equipment, light industrial products, office supplies and domestic trade (excluding the
franchise, the control and the monopoly of goods) ; operation of import and export
business.\" after approval of Shenzhen Market Supervisory Authority .
In October 2004,In accordance with the Decision on Establishing Shenzhen Investment
Holdings Co., Ltd. issued by State-owned Assets Administration Committee of
Shenzhen Municipal People's Government (Shen Guo Zi Wei (2004) No. 223
Changes is the controlling shareholder in
Document), Shenzhen Investment Management Co., Ltd., the controlling shareholder
the past (is any)
of the Company, and Shenzhen Construction Holding Company and Shenzhen
Commerce and Trade Holding Company merged into Shenzhen Investment Holdings
Co., Ltd.
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs Peking Certified Public Accountants（Special Geneaal Partnership）
Office address： 11/F, Zhongtang Building , No.110, Xihimen Street , Beijing
Names of the Certified Public
Li Yong, Lan Tao
Accountants as the signatiries
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √Not applicable
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √ Not applicable
VI.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2016 2015
（％）
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Operating income（RMB） 1,198,200,216.42 1,226,746,791.62 -2.33% 1,210,952,548.57
Net profit attributable to the
shareholders of the listed company -87,270,604.54 8,497,227.40 -1,127.05% -113,591,328.26
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
-102,767,648.41 -92,259,797.61 -11.39% -148,855,363.05
to the shareholders of listed
company（RMB）
Cash flow generated by business
-55,264,465.84 39,584,500.37 -239.61% -48,701,494.05
operation, net（RMB）
Basic earning per
-0.17 0.02 -950.00% -0.22
share(RMB/Share)
Diluted gains per
-0.17 0.02 -950.00% -0.22
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） -4.10% 0.39% -4.49% -5.06%
End of Changed over last year
End of 2016 End of 2014
2015 （％）
Gross assets（RMB） 4,119,586,266.47 2,969,394,978.70 38.73% 2,884,531,917.28
Net assets attributable to
shareholders of the listed company 2,339,554,176.31 2,174,569,545.55 7.59% 2,196,249,248.26
（RMB）
VII.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
Nil
VIII.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Operating income 262,310,373.65 289,847,211.91 305,710,856.98 340,331,773.88
Net profit attributable to the
-10,246,461.60 -19,851,389.80 -22,331,061.71 -34,841,691.43
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
-11,444,624.15 -20,934,054.20 -28,728,256.10 -41,660,713.97
to the shareholders of listed
company
Net Cash flow generated by
-23,635,239.84 -15,680,955.50 -9,241,580.15 -6,706,690.35
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
IX.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2016) Amount (2015) Amount (2014) Notes
Non-current asset disposal
gain/loss(including the write-off part for -138,610.37 -25,108.97 52,281.62
which assets impairment provision is made)
Govemment subsidy recognized in
currentgain and loss(excluding those closely
9,578,484.46 21,420,940.38 16,688,387.98
related to the Company’s business and
granted under the state’s policies)
Gain arising from investment costs
for acquisition of subsidiaries, associates
and joint-ventures by the corporation being
3,897,638.73
less than its share of fair value of
identifiable net assets of the investees on
acquisition
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities 88,006,690.51 16,896,190.19
and sellable financial assets other than valid
period value instruments related to the
Company’s common businesses.
Switch back of provision for depreciation of
634,628.72 790,775.00 1,655,886.25
account receivable which was singly taken
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
depreciation test.
Other non-operating income and expenditure
5,493,881.12 2,465,842.60 437,923.44
except for the aforementioned items
Less: Amount of influence of income tax 71,340.06 11,902,114.51 4,364,273.42
Total 15,497,043.87 100,757,025.01 35,264,034.79 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
III. Outline of Company Business
I.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In 2016, the company's main business covered such the high and new technology industry as represented by
LCD polarizer, its own property management business and the retained business of high-end textile and garment
Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel
display industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers and
TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on
many fields. The company’s five existing production lines of polarizer with mass production have products
covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products
mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones,
wearable devices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing
Optoelectronic, BOE, IVO, Shenchao Optoelectronic ,LGD and so forth panel companies.
During the reporting period, firstly, the company effectively improved the production capacity of polarizer
through speed-up and capacity-lift of the production line; secondly, the company promoted the second-phase
construction of No.6 line project according to the plan and completed the plant decoration and purification and the
related projects, as well as the host equipment has been successively arrived in the port while being installed;
thirdly; in order to further enhance the company's polarizer production technology and management level, the
company launched the introduction of strategic investors for Shenbo Optoelectronic, resulted in that Jinhang
Investment - which was set up by Hangzhou Jinjiang Group Co., Ltd and Hangzhou Jinjiang Group Co., Ltd is the
actual controller- invested RMB 1352.64 million in cash to subscribe 40% stake of Shengbo Optoelectronics. On
the basis of the Capital Increase Agreement signed by the company and Jinjiang Group andJinhang Investment,
they also signed the Cooperative Agreement which reached a consensus in connection to the future development
and management of Shengbo Optoelectronics.
Upon the dual effects of the product line construction and the enormous downstream market, the core of the
global display industry has speeded up the transfer to the Mainland China, thus Mainland China has become the
investment hotspots for the global panel display industry. The panel display industry is one of the most important
development projects listed in Medium and Long Term Development Outline for Information Industry form 2006
to 2020, and is also an industry encouraged by the country. In the future, the company will, upon more than 20
years of operational experiences in the industry and the regional advantages, fully utilize the resource advantages
of state-owned enterprise and the mechanism advantages of private enterprise. Based on the all-round
improvement of the management level and profitability and production technology, the company will tap into the
platform of listed company and the existing industries to integrate the industrial resources of polarizer industry
and other related optical film industry both in China and Taiwan area to boost the development of Shengbo
Optoelectronics and become perfect, thus to construct the Industrial Cluster of optical film in Shenzhen.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major chages
Fixed assets No major chages
Intangible assets No major chages
Construction in process at the end of the reporting period increased by RMB 44.0006
million compared to the beginning of the period, an increase of 58.05%, which was
Construction in process
mainly due to the increase of investment for the second-phase project of No.6 line of
TFT-LCD polarizer.
The monetary funds at the end of the reporting period increased by RMB 181.542
million, an increase of 24.13% compared to the beginning of the period, which was
Monetary funds
mainly due to capital increase by the strategic investor as Shenbo Optoelectronic
introduced the strategic investor in the current reporting period.
The notes receivable at the end of the reporting period increased by RMB 23.0666
million, an increase of 122.42% compared to the beginning of the period, which was
Bill receivable
mainly due to the increase of using notes for goods payment by Shengbo
Optoelectronics.
The interest receivable at the end of the reporting period decreased by RMB 23.646
million, a decrease of 78.04% compared to the beginning of the period, which was
Interest receivable
mainly due to the decrease of the interest receivable of structured deposits at the end of
the period.
Other receivables at the end of the reporting period increased by RMB 22.1389 million,
Other account receivable an increase of 49.05% compared to the beginning of the period, which was mainly due to
the increase of guarantee deposits for customs.
Other current assets at the end of the reporting period increased by RMB 914.4895
million, an increase of 178.07% compared to the beginning of the period, which was
Other current assets
mainly due to Shengbo Optoelectronics' use of self-owned funds to invest the financing
products.
The investment real estate at the end of the reporting period increased by RMB 44.9345
million, an increase of 33.44% compared to the beginning of the period, which was
Real estate investment
mainly due to Guanhua building that was completed in the current period turned into
investment real estate.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
III.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Technology advantages. Shengbo Optoelectronic is the first domestic national high-tech company which
entered into the R&D and production of the polarizer, and it has more than 20 years of operational experience of
the polarizer industry，The products include monochrome TN type, STN type, IPS-TFT type, VA-TFT type,
vehicle-mounted industrial-control display, flexible display, polarizer for 3D stereo and sunglasses, optical film
for touch screen etc., and the company possesses the proprietary whole-set technology of polarizer which can
satisfy the customers' needs and owns various kinds of independent intellectual property rights of new products.
By the end of the reporting period, the company applied for 69 invention patents and was authorized with 52 items,
among which: 15 domestic invention patents(7 patents got authorized); 48 domestic utility model patents(42
patents got authorized); 1 overseas invention patent(0 patents got authorized); 5 overseas utility model patents(3
patents got authorized). There were 3 national standards and 2 industrial standards that were developed by the
company are approved and then will be implemented. The company, possessing the two technology platforms
“Shenzhen polarizing materials and engineering laboratory\" and \"Municipal research and development center\",
focused on the R&D and the industrialization of the core production technology of LCD polarizer, the developing
and industrialization of the new products of OLED polarizer and the “domestication” research on the production
materials of polarizer. Through the introduction of various types of sophisticated testing equipments to perfect the
test means of small-scale test and medium-scale test, further by improving the incentive system of research and
development and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so
forth means, the company comprehensively enhanced the level of research and development.
（2）Talents advantages. The company has the management team and the senior technical team with strong
technical ability, enduring cooperative spirit, rich experience and international vision on the polarizer. The
company had engaged overseas technical personnel who have great experiences on advanced polarizer production
and established the technology management team with its own technical team and complemented by engaging
foreign technical personnel, and via the combination of independent innovation and technology providing by
engaged foreign personnel to accumulate technology, Upon Talents Advantages, the company has established and
accumulated the first-mover advantages in terms of brand, technology, operation and management. Through the
perfection of assessment system and remuneration system, the company centers on the incentive remuneration to
R&D staffs and technical staffs and gives a full play to the role of talents in the innovation-driven.
（3）Market advantages. The company has good customer groups not only in domestic market but in foreign
market, compared with foreign advanced counterparts, the biggest advantage lies in the localization for supporting,
close to the panel market, as well as the strong support of the national policy. As to the market development,
centered in the production material control, extended to both ends to link the procurement and the market,
established a rapid response mechanism, Fully utilize the advantages of localization, adopts the customer
development strategy of \"method of prescription\", and strengthens the point-to-point professional services with
the guidance of technology, thus to lay a solid foundation for the product marketing.
(4) Quality advantages. The company always adhered to the quality policy of \"Satisfying customer demands and
pursuing excellent quality\" and focused on product quality control, thus the product quality has larger advantages
compared with other similar-kind domestic companies. The company introduced a modern quality management
system, with the products passed the ISO9001 quality management system, ISO14001 environmental management
system, OHSAS18000, QCO80000 system certification and SGS testing, was in line with the ROHS
environmental protection requirements, and with standardized processes of raw materials supplying,
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
production-manufacturing, marketing, sales and customer services for ensuring the stability of the product quality.
The company had increased the automatic detecting and marking equipments in the beginning section and the
ending section, strictly controlled the product quality and improved the product utilization rate and product
management efficiency.
（5）Management advantages. Shengbo Optoelectronic has accumulated rich management experiences in more
than 20 years in the manufacturing of polarizer, possessing the home most advanced control technology of the
production management process of the polarizer and quality management technology and the stable raw material
procurement channel so forth management systems. The company had carried out comprehensive benchmarking
work, organized the management personnel to learn advanced experiences from customers and peers to force the
elevation of management ability, and drew on the foreign company’s management experiences of polarizer,
optimized the company's organizational structure, reduced the managerial hierarchy and further enhanced the
company's management efficiency. After the introduction of the strategic investor, the company fully taps into the
mechanism advantages of private enterprise, specifies the job responsibilities and inspires employees by linking
with the company's actual business profit, thus to realize the deep integration of the corporate value and the
employees' values, further invigorating the new vitality of business operation and development.
（6）Policy advantages. The polarizer industry, which belongs to the industries encouraged by the Chinese
government, is included in the strategic emerging industries for boosting the future economic and social
development. The company’s polarizer project won several times of national and provincial policy-support and
funds support, and as the key raw material project of the upstream industry of new display devices, it enjoys the
preferential policies of exemption for import duties on the self-used production materials which cannot be
manufactured in China. Meanwhile, the company strengthened the management on suppliers, perfected the overall
procurement strategy, strictly controlled the number of suppliers while drawing in competition mechanism,
actively followed-up the substitution work for many kinds of raw materials and further reduced the production
costs to improve the competitiveness of products.
IV. Management’s Discussion and Analysis
Ⅰ.General
In 2016 , by the sharp appreciation of the yen, raw material prices, as well as major asset restructuring and
other unfavorable factors, polarizing film production and management challenges. Company management unified
thinking, always adhere to the transformation and development, to promote mixed ownership reform, Shengbo
photoelectric level in the successful introduction of private capital, improve competitiveness. To promote the
construction of polarized film project to improve the main business at the same time to ensure that the property
leasing income continued to grow, maintaining a stable and orderly development of the work situation.
In the year of 2016, the Company realized operating income of RMB 1198.2002 million down 2.33% from
the same period of last year. The total profit loss was RMB 77.9865 million, down 280.73% from the same period
of last year. The net profit attributable to the shareholders of the listed company was RMB 87.2706 million Year
decline of 1,127.05%. The main reason is the sharp appreciation of the yen, the company polarizer business raw
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
material costs and exchange losses increased significantly over the same period last year, polarizer business losses
increased, while the sale of available-for-sale financial assets to obtain investment.
Review of the company's key works carried out in 2016 as follows:
(a) New achievements obtained in the development of the polarizer business
In 2016, firstly, the company effectively improved the production capacity of polarizer through speed-up and
capacity-lift of the production line, meanwhile, the company fully utilized the AOI defect recognition system to
strengthen the real-time monitoring and response speed, thus to improve the product quality; secondly, the
company actively promoted the client-import work for new products and realized multi-species, multi-client
diversified supply pattern, as well as made new breakthroughs in the overseas customers; thirdly, the company
carried out the R&D work focused on a variety of new products with high added values especially in IPS ultrathin
polarizer and OLED display polarizer, and the company enriched the products types, actively followed-up the
substitution work of various raw materials, and reduced the production costs; fourthly, the company actively
worked for gaining the industrial policy support, and the company totally got the policy-support funds of RMB
31.29 million and got five years extension of duty-free for imported polarizer raw materials (from January 1, 2016
to December 31, 2020), as well as Shengbo Optoelectronics again passed the national high-tech enterprise
recognition; fifthly, the company promoted the construction of No.6 line project according to the plan and
completed the plant decoration and purification projects, as well as the host equipment has been successively
arrived in the port while being installed.
At the same time, the company increased the efforts for R & D on independent intellectual property rights.
During the reporting period, the company totally applied 12 patents which were being accepted (5 invention
patents, 5 domestic utility model patents and 2 overseas utility model patents), and the company was authorized
with 14 patents(3 invention patents, 10 domestic utility model patents and 1 overseas utility model patents). As of
December 31, 2016, the company totally applied 69 patents and was authorized with 52 patents, among which:
there were 15 domestic invention patents ( 7 patents got authorization), 48 domestic utility model patents( 42
patents got authorization), 1 overseas invention patents ( o patents got authorization) and 5 overseas utility model
patents ( 3 patents got authorization). The \"Determination of Optical Compensation value for Polarizer\" and the
\"Test Method for adhesion force of the optical thin-film coating for polarizer\" that were developed and set up by
the company will be officially implemented from May 1, 2017.
(b) Increasing growth of leasing revenue of property-type companies
In 2016, firstly, the company strengthened the service management of property-type enterprises, optimized
the customer structure and strictly implemented the leasing revenue enhancement plan, and the rental price of new
contracts continued to maintain a certain increase; secondly, the company fully utilized the opportunity arising
from the integrated transformation of buildings in Huaqiang North Commercial Street and completed the facade
renovation to enhance the image of the building, thus created conditions for the increasing enhancement on the
business performance of the property operation; thirdly, completed the final acceptance of Guan Hua building and
made the good preparation work for starting leasing.
(c) Constantly perfected the \"13th Five-Year\" strategic planning
In 2016, the company constantly demonstrated and perfected the central tasks, business planning objectives
and key investment projects in the \"13th Five-Year\" planning, as well as specified the strategic goal of
unswervingly developing the polarizer business. Furthermore, the company would continuously adjust and perfect
the \"13th Five-Year\" strategic planning according to the business operation and development arrangements after
Shengbo Optoelectronics' introduction of strategic investors.
(d) Drew in strategic investors and invigorated the mechanism to make a stronger business
In order to further enhance the company's production management level and profitability of polarizer
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
production and shape a stronger polarizer business, the company launched the work to introduce strategic
investors for Shengbo Optoelectronics. After the audit, evaluation and the public listing, Jinjiang Group won the
bid in Shenzhen United Property Rights Exchange, thus Jinhang Investment-which was set up by Hangzhou
Jinjiang Group Co., Ltd and Hangzhou Jinjiang Group Co., Ltd is the actual controller-signed the Capital Increase
Agreement with the company, and Hangzhou Jin Hang Equity invested RMB 1352.64 million in cash to subscribe
40% stake of Shengbo Optoelectronics.
In order to further tap into the resource advantages of state-owned enterprise and the mechanism advantages
of private enterprise, the company, on the basis of the signed Capital Increase Agreement, signed the Cooperative
Agreement with Jinjiang Group, reached a consensus on the future management and development of Shengbo
Optoelectronics. Upon the all-round improvement of the management level and profitability and production
technology, the company will tap into the platform of listed company and the existing industries to integrate the
industrial resources of polarizer industry and other related optical film industry both in China and Taiwan area to
boost the development of Shengbo Optoelectronics and become perfect, thus to construct the Industrial Cluster of
optical film in Shenzhen.
(e) Active cooperation in promoting the work of the major asset restructuring
According to the controlling shareholder's planning of arrangements of the major event, the company’s stock
trading was suspended from August 4, 2016. During the suspension period, the company has engaged the
independent financial adviser, the law firm, the accounting firm, the asset appraisal agency and other
intermediaries to carry out the due-diligence, the audit and asset assessment, with active communications and
demonstrations in connection to the major asset restructuring plan. Then the Framework Agreement was signed,
and there were negotiations carried out for the employee placement and the transaction agreement, thus reached a
preliminary intention.
In the demonstration process of the scheme, based on the changes in the current domestic securities
market-environment and policies, it will face many uncertainties if continue to promote the major asset
restructuring. Therefore, in order to effectively control the risks, after careful study, the company and TCL Group
decided to terminate the major asset restructuring plan and signed the Agreement on the Termination of the Major
Asset Restructuring, in which TCL Group agreed to compensate for the company's intermediary fees occurred in
the period of the major asset restructuring and promised to continuously support the company's polarizer business.
After making the application to Shenzhen Stock Exchange, the company's stock trading was resumed from
December 19, 2016.
(f) Paying close attention to safety production and taking preventive measures to ensure the safe development
of enterprises
In 2016, while well implementing the daily safety checks, the company strengthened the safety inspections
during holidays. The company totally found out 203 hidden dangers to safety, a decrease of 16.3% compared to
2015. At the same time, the company did a good job in cases of severe weathers such as typhoon and heavy rain,
thus ensured the realization of the annual goal of safety production.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
2. Revenue and cost
(1)Component of Business Income
In RMB
2016
Increase /decrease
Amount Proportion Amount Proportion
Total operating
1,198,200,216.42 100% 1,226,746,791.62 100% -2.33%
revenue
Industry
Domestic and
434,671,637.06 36.28% 429,639,819.01 35.02% 1.17%
foreign trade
Manufacturing 667,042,214.73 55.67% 700,600,503.65 57.11% -4.79%
Lease and
Management of 92,357,025.54 7.71% 90,743,656.58 7.40% 1.78%
Property
Other 4,129,339.09 0.34% 5,762,812.38 0.47% -28.35%
Products
Lease and
Management of 92,357,025.54 7.71% 90,743,656.58 7.40% 1.78%
Property
Textile 29,011,426.03 2.42% 25,205,284.70 2.05% 15.10%
Polarizer sheet 798,562,759.96 66.65% 803,719,803.87 65.52% -0.64%
Trade 274,139,665.80 22.88% 301,315,234.09 24.56% -9.02%
Other 4,129,339.09 0.34% 5,762,812.38 0.47% -28.35%
Area
Domestic 740,115,218.94 61.77% 452,609,409.47 36.90% 63.52%
Overseas 458,084,997.48 38.23% 774,137,382.15 63.10% -40.83%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit of revenue in the of business cost of gross profit
Turnover Operation cost
rate(%) same period of over the same rate over the same
the previous period of period of the
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
year(%) previous year (%) previous year (%)
Industry
Domestic and
434,671,637.06 430,186,062.05 1.03% 1.17% 1.65% -0.47%
foreign trade
Manufacturing 667,042,214.73 667,847,188.15 -0.12% -4.79% -3.24% -1.60%
Lease and
Management of 92,357,025.54 25,973,066.77 71.88% 1.78% 10.64% -2.25%
Property
Products
Lease and
Management of 92,357,025.54 25,973,066.77 71.88% 1.78% 10.64% -2.25%
Property
Textile 29,011,426.03 29,754,708.71 -2.56% 15.10% 9.73% 5.02%
Polarizer sheet 798,562,759.96 796,982,437.95 0.20% -0.64% 1.23% -1.84%
Trade 274,139,665.80 271,296,103.54 1.04% -9.02% -9.27% 0.27%
Area
Domestic 735,985,879.85 666,419,200.41 9.45% 64.71% 68.12% -1.84%
Overseas 458,084,997.48 457,587,116.56 0.11% -40.83% -38.21% -4.24%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2016 2015 Changes
(0000’ square
Sales 866.71 846.98 2.33%
meters)
(0000’ square
Polarizer sheet Production 824.1 877.05 -6.04%
meters)
(0000’ square
Stock 115.83 118.79 -2.49%
meters)
Sales 0000’ pieces 155 164 -5.49%
Knitted clothing Production 0000’ pieces 164 167 -1.80%
Stock 0000’ pieces 63 54 16.67%
Explanation for a year-on –year change of over 30%
□ Applicable √Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry and product classification
In RMB
2016
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Domestic and Polarizer sheet,
430,186,062.05 38.13% 423,199,182.16 37.04% 1.65%
foreign trade Textile
Polarizer sheet,
Manufacturing 667,847,188.15 59.20% 690,228,637.37 60.42% -3.24%
Knitted clothing
Lease and
Rental，
Management of 25,973,066.77 2.30% 23,475,132.76 2.06% 10.64%
Accommodation
Property
In RMB
2016
Classification of
Proportion in Proportion in Increase/Decrease
products Items
Amount operation Amount operation (%)
costs(%) costs(%)
Polarizer sheet Direct materials 606,603,651.00 53.77% 556,833,603.63 48.74% 8.94%
Polarizer sheet Direct labor 32,196,752.56 2.85% 37,928,773.59 3.32% -15.11%
Polarizer sheet Power costs 33,374,274.35 2.96% 36,800,389.29 3.22% -9.31%
Manufacturing
Polarizer sheet 124,568,647.78 11.04% 155,739,361.77 13.63% -20.01%
costs
Knitted clothing Direct materials 12,479,774.66 1.11% 9,355,247.57 0.82% 33.40%
Knitted clothing Direct labor 6,486,194.20 0.57% 6,128,505.48 0.54% 5.84%
Knitted clothing Power costs 1,121,172.68 0.10% 1,948,677.34 0.17% -42.46%
Manufacturing
Knitted clothing 9,667,567.17 0.86% 9,685,069.84 0.85% -0.18%
costs
Notes
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□Yes √ No
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 721,041,062.72
Proportion of sales to top 5 customers in the annual
60.17%
sales(%)
Proportion of the sales volume to the top five customers
0.00%
in the total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount9RMB) Proportion(%)
1 Customer 1 274,139,665.80 22.88%
2 Customer 2 242,573,489.49 20.24%
3 Customer 3 122,686,975.03 10.24%
4 Customer 4 41,355,531.72 3.45%
5 Customer 5 40,285,400.68 3.36%
Total -- 721,041,062.72 60.17%
Other Notes :
√Applicable □Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors,
supervisors and senior management, core technical staff, shareholders with holding of more than 5% stocks, actual
controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 403,912,297.95
Percentage of total purchase of top 5 suppliers In total
56.48%
annual purchase(%)
Proportion of purchase amount from the top 5 suppliers in
the total purchase amount from the related parties in the 0.00%
year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Supplier 1 147,191,537.88 20.58%
2 Supplier 2 67,801,096.85 9.48%
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
3 Supplier 3 67,640,154.40 9.46%
4 Supplier 4 65,211,956.46 9.12%
5 Supplier 5 56,067,552.36 7.84%
Total -- 403,912,297.95 56.48%
Notes
√Applicable □Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors,
supervisors and senior management, core technical staff, shareholders with holding of more than 5% stocks, actual
controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
3.Expenses
In RMB
Increase/Decrease(
2016 2015 Notes
%)
Sale expenses The main reason was that Shengbo
Optoelectronics stopped making a
10,161,699.85 11,743,914.73 -13.47%
provision for customer service fees
leading to decrease in sales expenses.
Administration expenses 106,901,733.12 103,044,704.30 3.74%
Financial expenses As the JPY exchange rate rise,
-1,678,136.65 -24,448,318.10 93.14% resulting in JPY denominated payables
increased foreign exchange losses.
4.R& D Expenses
√Applicable □Not applicable
There were a total of 16 R&D projects in the year, including R&D of thin-type products, performance
improvement, development of polarizer for large size TV, performance improvement of polarizer for OLED
display and product development for vehicle-mounted industrial control. As of now, the company basically
completed the development goals set up at the beginning of the year, and the products of the polarizer for large
size TV, polarizer for OLED and products for vehicle-mounted industrial control had passed the client recognition
and realized small batch supply. During the reporting period, a total of 63 new products (Counted by product type)
successfully got sales orders, which further enriched the company's product-types, so as to better meet the various
market demands.
Situation of Research and Development Input by the Company
2016 2015 Increase/Decrease(%)
Number of Research and
106 98 8.16%
Development persons (persons)
Proportion of Research and 8.44% 7.66% 0.78%
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Development persons
Amount of Research and
Development Investment (In 39,308,762.42 30,867,294.24 27.35%
RMB)
Proportion of Research and
Development Investment of 3.28% 2.52% 0.76%
Operation Revenue
Amount of Research and
Development Investment 0.00 0.00
Capitalization (In RMB)
Proportion of Capitalization
Research and Development
0.00% 0.00%
Investment of Research and
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2016 2015 Increase/Decrease(%)
Subtotal of cash inflow received
1,288,587,823.52 1,411,832,217.48 -8.73%
from operation activities
Subtotal of cash outflow
received from operation 1,343,852,289.36 1,372,247,717.11 -2.07%
activities
Net cash flow arising from
-55,264,465.84 39,584,500.37 -239.61%
operating activities
Subtotal of cash inflow received
851,568,515.73 125,106,336.14 580.68%
from investing activities
Subtotal of cash outflow for
1,880,577,108.61 507,193,753.16 270.78%
investment activities
Net cash flow arising from
-1,029,008,592.88 -382,087,417.02 -169.31%
investment activities
Subtotal cash inflow received 1,581,219,588.81 244,759,302.00 546.03%
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
from financing activities
Subtotal cash outflow for
316,577,182.44 256,361,490.38 23.49%
financing activities
Net cash flow arising from
1,264,642,406.37 -11,602,188.38 11,000.03%
financing activities
Net increase in cash and cash
181,455,560.97 -349,573,483.42 151.91%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
（1）The net cash flows from operating activities decreased by RMB94.849 million and 239.61% year on year，
Mainly caused by decrease in cash received for polaroid glass product sales and by decrease in government
subsidy received
（2）The net cash flows from investing activities increased by RMB726.4622 million and 580.68% year on year，
Mainly caused by the increase in the principal and earning of the structural deposits.
（3）Subtotal of cash out-flow from investment activity increased by RMB1373.3833 million and 270.78% year on
year，Mainly caused by the increases in the investments for structural deposits and other financing products
（4）Subtotal of cash in-flow from financing activity increased by RMB1336.4603 million and 546.03% year on
year，Mainly caused by the strategic investors introduced by Shengbo Optoelectronic at the current period and the
incremental capital amount paid by the strategic investors。
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□Applicable √Not applicable
Ⅲ.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Joint-stock Enterprises and
Investment incme 5,223,413.76 6.70% Sustainable
Contracting Costs
Changes in fair
value gains and 0.00 0.00%
losses
Impairment of Loss on inventory valuation
42,486,884.12 54.48% Sustainable
assets and bad debts
Non-operating Mainly for the government
15,072,447.15 19.33% Sustainable
income subsidy received
Non-operating
138,691.94 0.18% Unsustainable
expenses
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2016 End of 2015 Proportio
Proportion in n
Notes to the significant change
Amount the total increase/d
assets(%) ecrease
Mainly for that Shengbo
Optoelectronic introduced strategic
investors, which substantially increased
the asset as well as rights and interests.
933,856,912.7 The Company utilized the incremental
Monetary fund 22.67% 752,314,871.53 25.34% -2.67%
3 capital amount paid by the strategic
investors to invest short-term financing
products and structural deposits, which
resulted in decline in other asset
projects’ proportion of total asset.
Accounts 220,222,019.4
5.35% 182,766,372.05 6.16% -0.81%
receivable
283,371,714.0
Inventories 6.88% 308,775,044.88 10.40% -3.52%
Investment real 179,324,547.7
4.35% 134,389,963.05 4.53% -0.18%
estate
Long-term equity
24,849,311.00 0.60% 22,879,269.06 0.77% -0.17%
investment
723,685,287.5
Fixed assets 17.57% 790,019,487.16 26.61% -9.04%
Construction 119,804,231.4
2.91% 75,803,586.70 2.55% 0.36%
inprocess
Short-term loans 12,335,695.77 0.30% 53,866,521.87 1.81% -1.51%
Long-term loans 80,000,000.00 1.94% 120,000,000.00 4.04% -2.10%
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on Cumulative fair Impairment Purchased Sold amount in
Amount at year Amount at
Item fair value value change provisions in amount in the the reporting
beginning change in the recorded into the reporting reporting period year end
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
reporting equity period period
period
Financial assets
3.
Avaliable-for-sa
10,054,476.60 -561,867.81 8,378,730.50
le financial
assets
Subtotal of
10,054,476.60 -561,867.81 8,378,730.50
financial assets
Total 10,054,476.60 -561,867.81 8,378,730.50
Financial
0.00 0.00
Liability
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
Applicable
Ⅴ.Investment situation
1. General
□Applicable √Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable √Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
Nil
（2）Investment in Derivatives
□ Applicable √ Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Nil
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Amount of Total
Accumulat Proportion
raised Amount of Amount of
ive amount of raised Use and
Total capital of the the Raised
Total of raised capital of Whereabo
Total Amount of which the Unused Fund with
Year of Way of amount of capital of which the uts of the
raised the Raised purpose Raised over 2
Raising Raising Raised which the purpose Unused
capital Fund Used was Fund at Years’
Funds purpose has been Raised
at the changed in the Idling
has been changed Fund
the report Current
changed (%)
period Period
There was
RMB 398
million
used for
structured
deposits
and there
was RMB
of 269.385
million of
Non-publi intelligent
2013 96,175.1 3,722.52 5,574.42 30,927.22 30,927.22 32.16% 68,826.37
c issue deposit,
and the
rest were
deposited
in the
special
account
for the
raised
funds.
Total -- 96,175.1 3,722.52 5,574.42 30,927.22 30,927.22 32.16% 68,826.37 --
Notes to use of raised capital
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
In the reporting period, the accumulated expenditure of the special account for raised funds was RMB 37.2252 million-which was
all used for the construction of the second-phase project of No.6 line of TFT-LCD polarizer. As of the end of the reporting period,
the accumulated expenditure of the special account for raised funds is RMB 55.7442 million, and the Investment schedule
completion rate is 7.96%.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
Phase-II
July
project of polarizer Yes 96,175.1 70,034 3,722.52 5,574.42 7.96% 0 - Yes
1,2017
sheet for TFT-LCD
Subtotal of committeed
-- 96,175.1 70,034 3,722.52 5,574.42 -- -- -- --
investment projects
Investment orientation for und arising out of plan
Nil
Total -- 96,175.1 70,034 3,722.52 5,574.42 -- -- 0 -- --
Situation about not
coming up to schemed
progress or expected Not applicable
revenue and the reason
( in specific project)
According to the latest situation of the industry development, the original second phase construction
scheme of the TFT-LCD polarizer was optimized, and then according to the results concluded by the
experts, the company decided to continue to promote the construction of the No.6 line project. At the same
Notes to significant time, in the light of there was a large funds gap between the actual raised capital and the planned raised
change in feasibility of capital for the second phase project, then by comprehensive considerations of the company’s production
the project line scale and the operation pressure, the company decided to terminate the project of No.7 line, and the
corresponding amount of funds of RMB309.2722 million(including interests) for No.7 line project shall be
changed for permanently supplementing the liquidity. The Proposal on Alteration of the Use of Part of the
Raised Capital for the Second Phase Project of TFT-LCD Polarizer was examined and approved in the
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
2015 annual shareholder meeting on April 21, 2016..
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of Not applicable
the implementation site
of the projects invested
with the proceeds
Adjustment of the Not applicable
implementation way of
investment funded by
raised capital
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Applicable
On March 29, 2016, the Proposal on Using Part of Idle Raised Funds to Temporarily Supplement the
Liquidity was examined and approved in the 20th board meeting of the company’s 6th session board of
directors, which agreed with using part of the idle raised funds of the amount of RMB 300 million
originally for the second phase project of TFT-LCD polarizer to supplement the company’s liquidity, with a
term of no more than 12 months commenced from the date the board approved the proposal i.e. from
March 29, 2016 to March 28, 2017. On March 29, 2016, the amount of RMB 150 million was transferred
out from Sheng Bo Optoelectronic Co.,Ltd special account for the raised funds to supplement the liquidity.
As the Proposal on Alteration of the Use of Part of the Raised Funds for the Second Phase Project of
TFT-LCD Polarizer was approved in the 2015 annual shareholder meeting on April 21, 2016, the afore-said
Using the idle proceeds
funds had been converted into permanently supplementing the liquidity.
to supplement the
working capital on On September 18, 2016, the Proposal about the Use of Part Idle Raised Funds to Temporarily Supplement
temporary basis Liquidity was examined and approved in the 27th board meeting of the company's sixth session board of
directors, agreed the use of part idle raised funds of the second-phase project of No.6 line to temporarily
supplement liquidity, with the use of the amount of RMB 280 million and its term shall not exceed 12
months from the date of approval by the board of directors-the concrete period is from September 18, 2016
to September 17, 2017. On September 28, 2016, there was RMB 250 million transferred out from the
Shengbo Optoelectronics' special account for raised funds to supplement the liquidity; On October 24,
2016, there was RMB 10 million transferred out from the Shengbo Optoelectronics' special account for
raised funds to supplement the liquidity, but on the dates of October 31, 2016 and November 1, 2016, the
afore-said RMB 10 million used for supplementing liquidity was returned; On December 21, 2016, there
was RMB 30 million transferred out from the Shengbo Optoelectronics' special account for raised funds to
supplement the liquidity; On December 27, 2016, the above-mentioned RMB 280 million used for
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
supplementing liquidity was all returned to the Shengbo Optoelectronics' special account for raised funds.
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
About application and As of December 31, 2016, the balance of the raised funds which has not been used was RMB 688.2637
status of the proceeds million, among which, there was RMB 398 million of structured deposits and RMB 269.385 million of
unused intelligent time deposit, and the rest was deposited in the special account for raised funds.
Problems existing in
As of December 31, 2016, the cumulative investment for the second-phase project of No.6 line was RMB
application of the
283.0887 million, accounting for 40.42% of total investment of RMB 700.34 million-which had been
proceeds and the
adjusted, among which, the use of raised funds was RMB 55.7442 million and the use of self-owned funds
information disclosure
and government funds was RMB 227.3445 million.
or other issues
（3）Changes of raised funds projects
√ Applicable □Not applicable
In RMB’0000
Accumulati Progress of
Whether the
Total on virtual the Whether it
Predicted feasibility
Correspondi amount Virtual amount investment Income has come up
serviceable of the
Project after ng original invested amount input deadline the achieved in to the
condition project
the change committed after input in the deadline the end of the the scheduled
date of changed
project adjustment reporting end of the reporting reporting income
project after the
(1) reporting (%)(3)=(2)/ (Y/N)
alteratio
(2) (1)
Phase-II
project of
polarizer
- 0 0 0 0 - -
sheet for
TFT-LCD
(7 Line)
Total -- 0 0 0 -- -- 0 -- --
In the light of there was a large funds gap between the actual raised funds and the planned
raised funds for the second phase project, then by comprehensive considerations of the
company’s production line scale and the operation pressure, the company terminated the
Changing reason, decision procedure project of No.7 line, and the corresponding amount of funds of RMB309.2722
and statement of disclosure(In specific million(including interests) for No.7 line project shall be changed for permanently
project) supplementing the liquidity. The Proposal on Alteration of the Use of Part of the Raised
Funds for the Second Phase Project of TFT-LCD Polarizer was examined and approved in
the 2015 annual shareholder meeting. Refer to Company Announcement No. 2016-09 and .
Announcement No. 2016-16 on March 25, 2016 and April 22, 2016 at JuChao information
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
network (http://www.cninfo.com.cn)
Not meet the scheduled progress or
projected benefits, and reasons for that Not applicable
(based on specific project)
Explanation on significant changes in
Not applicable
feasibility of projects
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Shenzhen
Lisi Domestic
27,939,751.5 24,555,136.7
Industrial Subsidiary trade, Lease 2,360,000.00 7,656,285.54 2,775,168.44 2,226,550.40
3
Development
Co., Ltd.
Shenzhen Accommodat
32,196,423.5 25,422,251.7 10,382,000.9
Huaqiang Subsidiary ion, business 10,005,300.0 2,863,053.84 2,200,907.88
1 0
Hotel center; 0
Shenfang
Property Property 10,031,085.7
Subsidiary 9,673,428.77 2,780,875.94 334,748.85 249,939.76
Management management 1,600,400.00
Co., Ltd.
Production of
Shenzhen
fully
Beauty 36,245,075.3 23,558,413.8 32,415,848.3 -5,452,282.5 -5,799,721.4
Subsidiary electronic 25,000,000.0
Century 6 4 9 9
jacquard 0
Garment Co.,
knitting
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Ltd. whole shape
Shenzhen
Shengbo Production
3,274,511,80 2,740,701,81 801,560,843. -131,094,111 -116,436,201
Opotoelectric Subsidiary and sales of 583,333,333.
7.88 6.78 25 .13 .56
Technology polarizer 00
Co., Ltd
Shenzhen
Operating
Shenfang
Sub- import and 40,927,481.0 274,139,665.
Import & 8,330,844.68 2,495,402.55 1,869,249.08
Subsidiary export 5,000,000.00 6
export Co.,
business
Ltd.
Shengtou
Sub- Sales of 65,364,563.8 160,531,971.
（HK）Co., HKD10,000 2,829,136.67 1,630,915.19 1,640,429.77
Subsidiary polarizer 3
Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable √ Not applicable
Notes
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
In recent years, along with the global tendency of making large-size TFT-LCD panel, upon the improvement
of the display technology and such factors as high resolution, wide viewing angle, touch application, lighter
appearance brought by pluralism of products application, the momentum of global TFT-LCD industry
development is strong.BOE and Huaxing Optoelectronics both launched the construction of the 10.5 generation
line. On March 1, 2017, Hon Hai Precision Ind also held the commencement ceremony of 10.5 generation line in
Zengcheng City Guangzhou. Currently, there are 23 LCD panel production lines already existed in Mainland
China, with the production capacity of 65 million square meters / year; and there are 11 lines of six-generation or
above LCD panel production under construction, with the planning capacity of more than 80 million square
meters / year, and those are expected to be put into operation in 2018. At that time, China will become the world's
largest production base of the liquid crystal panel, with the production capacity to be ranked first in the world.
LCD is still the mainstream of future development, and it is difficult to produce competitive alternative products.
As the continuous growth of panel shipments drives the growth of the matching components of panel, it will
promote the development of a variety of supporting industries including polarizer industry.
At present, the world's major polarizer suppliers are Nitto Denko, Sumitomo Chemical, LG Chemical, SDI,
Chi Mei Materials and BenQ Materials. Among them, Nitto Denko, Sumitomo Chemical and LG Chemical have
an obvious advantage in terms of the market shares. With the rapid development of flat-panel display industry in
mainland China, the overseas large polarizer manufacturers such as SDI, LG Chemical and Chi Mei Materials all
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
set up plants in mainland China, while Nitto Denko and Sumitomo Chemical also carry out the construction of
front-section full-process line based on the existed end-section of cutting, and the domestic polarizer companies
also speed up the pace of constructing new production lines.
Polarizer is one of the indispensable key materials for TFT-LCD and AMOLED panel. However, because the
industrial chain maturity is not balanced, so the domestic matching rate is far below the safety value of 30%.
\"Made in China 2025\", which is the development guidance and the top-level design of the next 10 years industrial
development of China, clearly specifies the goal of enhancement on the R&D, design and manufacturing ability of
\" Basic materials, basic components, basic technology and basic manufacturing equipment\". Therefore, whether
from the policy perspective or the market perspective, the domestic polarizer has a huge space for development.
2.The company's development strategy
In 2016, Shengbo Optoelectronics successfully completed the mixed owner-ship reform and drew in industrial
resource-based strategic investors, and the company solved the institutional mechanism issue while improving the
technology and the management, which also provided a new opportunity for the development of the company's
polarizer business. The company will continue to unswervingly develop the polarizer business in the period of
\"13th Five-Year, and will tap into the platform of listed company and the existing industries to integrate the
industrial resources of polarizer industry and other related optical film industry both in China and Taiwan area to
boost the development of Shengbo Optoelectronics and become perfect, thus to construct the Industrial Cluster of
optical film in Shenzhen.
3.Possible risks
1. Macroeconomic Risks
In the outlook of 2017, China will further promote the supply-side reform and the new economic
driving-force and mode will further replace the old economic driving-force and mode, thus the overall economic
will expect a stable operation. As china's manufacturing industry is facing the severe challenges of \"two-way
extrusion\" by developed countries and other developing countries, the government proposed the strategy of
\"manufacturing making a powerful country\". The company belongs to the industry which is an important
component of the electronic information industry, and that industry will be strongly supported by the nation's
policies. However, it cannot rule out the risks of unpredictable changes in the macroeconomic leading to affecting
the company's business performance.
2. Market risks
Due to the characteristics of rapid replacement and upgrading of display end-product, there is higher
requirement for the timely response ability of technology and products, while the price decline-trend also
increasingly squeezes the profit space of upstream polarizer business. If the company's technology and products
cannot timely respond to the needs of the application fields or the market competition leads to lower prices, the
company will get an adverse impact.
3. Raw-material risks
Currently, the key raw materials for producing polarizer, which are PVA film and TAC film, are basically
monopolized by Japanese. The price of the film-material is affected by the suppliers' capacity, the market demand,
the yen exchange rate and so on, thus it will further impact the company's product unit costs.
4..The key work in 2017
1. Comprehensively enhancing the business operation ability of polarizer
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Firstly, tap into the potential of 1-3 lines and increase the efficiency, control costs, improve product quality,
optimize customer structure and seek new profit growth point; secondly, continue to optimize the product
structure of line 4, strengthen the site management, improve the level of production technology, fully utilize the
advantages of equipment, improve quality and reduce energy-consumption, speed-up the production line and lift
production capacity; thirdly, speed up the construction of line 6 project, actively follow up the progress of work
equipment installation and commissioning to ensure the timely completion of commissioning for well preparing
for the mass-production; fourthly, fully utilize Jinjiang Group's experiences in production management,
production line construction and other fields and fully utilize the flexible advantages of mixed ownership system
to invigorate the business vitality of Shengbo Optoelectronics, thus to comprehensively enhance the business
operation ability of polarizer.
2.Property Management Enterprise Makes Actively Boost to Steadily Increase the Property Management
Efficiency
The property management enterprise will seize the favorable opportunity from the transformation and
upgrading in Huaqiangbei to perfect property function, optimize tenement structure, increase rental income and
continuously improve the property management efficiency. Meanwhile, the renting attraction of Guanhua
Building will be completed well, which will make it a new growth point of the Company’s property income.
3.Strengthen the Talent Echelon Construction and Improve the Enterprise’s Core Competitiveness
The Company is now in the middle term of transformation development, where the business development is
growing fast. In 2017, the Company will intensify the focus on internal talent training and selection. According
to the Company’s general strategy, the management mechanism of reserved talent echelon construction will be
conducted to provide promotion channels for talents, to promote tendency for the cadre echelon to become
younger and to continuously improve the enterprise’s core competitiveness and sustainably developing ability.
4.Innovate Operation and Optimize Institution and Mechanism to Motivate New Vitality for the Enterprise
Using the successful experience that Shengbo Optoelectronic introduced strategic investors for reference, the
Company will innovate the operating modes of its subordinated enterprises and thoroughly change the issues
including rigid mechanism and low efficiency to strengthen the enterprise’s vitality.
5. Constantly Focus Effect on Safe Production and Maintain the Harmony and Stability of the Enterprise
The Company will seriously implement responsibility system for production safety, actually posses sufficient
cognition, system, responsibility and measures for safety production, and persistently focus on checking and
solving the safety hazards to ensure no false will occur in both construction and safety of the project.
Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
To know more about the situation of
polarizer industry and the situation of the
May 12,2016 Onsite investigation Organization
company’s production and operation,
please see details in “Log of Investor
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Relation Activities”posted on the
interactive platform of investor relation
on May 12, 2016.（No：2016-01）
To know more about the situation of
polarizer industry and the situation of the
company’s production and operation,
July 25,2016 Onsite investigation Organization please see details in “Log of Investor
Relation Activities”posted on the
interactive platform of investor relation
on July 25, 2016.（No：2016-02）
Reception times
Reception agency amount
Reception personal number
Others
Whether to disclose, reveal or disclose non-public
No
material information
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□ Applicable √ Not applicable
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
Based on the needs of the construction of TFT-LCD polarizer project and the company business development,
there were no cash dividends and there were no capital reserves converted into share capital in the last three years.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2016 0.00 -87,270,604.54 0.00% 0.00 0.00%
2015 0.00 8,497,227.40 0.00% 0.00 0.00%
2014 0.00 -113,591,328.26 0.00% 0.00 0.00%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Commitment Commitment Type Contents Time of Peiod of Fulfillment
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
maker making commitment
commitment
As Shenzhen
Investment
Holdings Co.,
Ltd., the
controlling
shareholder of
the company,
committed
when the
restricted-for-s
ale shares
from the
shares
restructuring
were listed for
circulation in
the market: i.
if they plan to
sell the shares
Shenzhen through the
Share
Investment securities August 4, Sustained and Under
reduction
Holdings Co., exchange 2006 effective Fulfillment
commitment
Ltd. 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
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
strictly
observe the
“Guidelines
on Transfer of
Restricted-for-
sale Original
Shares of
Listed
Companies” a
nd the
provisions of
the relevant
business
principles of
Shenzhen
Stock
Exchange.
The company,
according to
the relevant
provisions of
Measures for
the
Administratio
n of Major
Asset
Restructuring
No major of Listed
Shenzhen
asset Companies, December February
Textile(Holdin Fulfilled
restructuring No.10 19,2016 18,2017
gs) Co., Ltd.
commitments Guidelines for
Business
Handling of
Listed
Companies-
Major Asset
Restructuring
and No.9
Business
Memorandum
of Main Board
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Information
Disclosure-Su
spending
Stock-trading
for Listed
Companies,
committed
that the
company shall
not plan a
major asset
restructuring
matter in 2
months
commenced
from the date
of termination
of the major
asset
restructuring
namely the
date of
announcement
on resuming
the company's
stock trading.
Shenzhen
Investment
Holdings Co.,
Ltd. signed a
“Letter of
Commitment
Commitments
and Statement
on horizontal
Shenzhen on Horizontal
competition,
Investment Competition October 9, Sustained and Under
Commitments made upon issuance related
Holdings Co., Avoidance” 2009 effective Fulfillment
transaction
Ltd. when the
and capital
company
occupation
issued
non-public
stocks in
2009.
Pursuant to
the Letter of
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
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
38
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
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
39
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Textile,
Shenzhen
Textile shall
have priority.
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
Commitments
and business
on horizontal
Shenzhen activities of
competition,
Investment inter-industry July 14, Sustained and Under
related
Holdings Co., competition 2012 effective Fulfillment
transaction
Ltd. with Shenzhen
and capital
Textile or its
occupation
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,
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
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
competition
with Shenzhen
Textile for
Shenzhen
Investment
Holdings and
its
share-holding
41
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
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.
Commitment t
Shenzhen
o non-public o
Investment Share limited March 25,
ffering during 2016-03-25 Fulfilled
Holdings Co., commitment
the second pha
Ltd.
se project of S
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
hen Textile sh
ares subscribe
d lock handle,
locking Shen
Textile non-pu
blic offering o
n the stock ma
rket of 36 mon
ths.
Executed timely or not? Yes
If the commitments failed to complete
the execution when expired, should
specifically explain the reasons of No
unfulfillment and the net stage of the
working plan
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained
□Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√ Applicable □Not applicable
Note 2. according to CK (2016) No. 22 notice \"On printing and Distributing Value-Added tax Accounting
Regulations\" issued by the Ministry of Finance, after comprehensive regulations for business tax paid VAT,
business tax and additional course changed name to \"tax and additional\" course. The course accounts consumption
tax of business activities, urban maintenance and construction tax, resource tax, educational expenses additional
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
and the property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes. The \"business tax
and additional\" column in the income statement should be changed to \"tax and additional\"column. The company’s
property tax, land-using tax, vehicle-using taxes, stamp duty and other relevant taxes should be listed in the
management fees. And also be listed in this course since May 1, 2016.
Items Amount
Taxes and surcharges 3,469,318.93
Management fee -3,469,318.93
The above changes in accounting policies were examined and approved in the 33th meeting of the sixth term
board of directors.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Peking Certified Public Accountants（Special General Partnership）
Remuneration for domestic accounting firm
(RMB’0000)
Continuous life of auditing service for domestic
accounting firm
Name of domestic CPA Li Yong, Lan Tao
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable □Not applicable
In the report year, the Company engaged Peking Certified Public Accountants as the internal control audit body in
2016. The audit remuneration was RMB 0.25 million (including traveling expenses).
During the reporting period, the company has engaged CITIC Securities as the independent financial consultant
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
for the company's major asset restructuring; the total amount of the fee charged by the financial consultant and
other intermediaries (legal, audit and assessment) employed by the company did not exceed RMB 30 million.
On December 16, 2016, the major asset reorganization planned for this project was terminated and the costs associ
ated with the reorganization were compensated by the reorganization party.
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
Other Lawsuits affairs
√ Applicable □Not applicable
Progress of
The oucome and Execution of
Basic situation of Involved Whether to form the
effects of litigation Date of Index of
litigation amount expected litigation(ar
litigation(arbitrati (arbitration)judg disclosure disclosure
(arbitration) (RMB’0000) liability bitration(ar
on) ement
bitration)
On March 6, On July 6,
2014,the company 2016, the
received the No.28 company
respondent notice received the
issued by Civil
Shenzhen Verdict by
Annual
Intermediate Shenzhen The verdict has no
Report 2014
People's Court Intermediat effect on the has been judged March
3,185.79 No （http://www
(2014) Foreign e People's company 31,2015
.cninfo.com.c
legislation, the Court-(No.2
n）
plaintiff 8-2014
association of Shenzhen
Hong Kong Xieli Intermediat
Automobile Co., e People's
Ltd liability Court
disputes has been Foreign-rela
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
formally accepted. ted Doc),
The company as and the
the first defendant, claim of the
Shenzhen Xieli plaintiff-Xie
Automobile Co., li
Ltd. was the Maintenanc
second defendant. e Company
The plaintiff was
requested: 1, the overruled
economic loss of by
tort liability by the Shenzhen
total amount of Intermediat
RMB 31.8579 e People's
million ; 2, the Court.
second defendant
involved in joint
liability of the
amount of
compensation; 3,
the litigation fee
paid by two
co-defendants.
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
During reporting period, there was no effective judgment of a court and large amount of debt maturity that the
company, its controlling shareholders and actual controller failed to perform or pay off.
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
XVI.Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of
Amount price of of
of the pricing Ratio in approve approve Way of Date of
Related Relation Type of Price of of trade similar informa
related the similar paymen disclosu
parties ship trade trade RMB0’ trade tion
transacti related trades d d t re
000 availabl disclos
ons transacti
e ure
ons （RMB limited
’0000） or not
(Y/N)
The
Chairma
n of the
Compan Sale
Tianma
y was products Sales of Market Agreem
Microelec
Vice to polarizer Principl ent 154.61 0.19% 600 No Transfer 154.61
tronic
Chairma related sheet e price
Co., Ltd.
n of parties
the
compan
y
Total -- -- 154.61 -- 600 -- -- -- -- --
Details of any sales return of a large
Not applicable
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine Not applicable
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the Not applicable
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □No
Due from related parties
Newly
Amount
Does there increased Interest in
Opening recovered in Ending
exist amount in the
Related Relationshi Causes of balance the balance
non-operati the Interest rate reporting
parties p formation (RMB reporting (RMB’0000
on capital reporting period(RM
‘0000) period(RM )
occupancy? period(RM B’0000)
B’0000)
B’0000)
The
Chairman
Shenzhen
of the
Tianma
Company Sale
Microelectr No 34.99 180.89 190.24 25.64
was Vice products
onics Co.,
Chairman
Ltd.
of the
company
Anhui
Huapeng Sharing
Contract fee No 360 180 180
Textile Co., company
Ltd.
Shenzhen
Dailishi Sharing
Contract fee No 27.72 89.45 87.17
Underwear company
Co., Ltd.
Influence of the related
rights of credit and
liabilities upon the
In the report period,Increase investment income of RMB2.6945 million.
company’s operation
results and financial
position
Due to related parties
Related parties Relationship Causes of Opening Amount Amount Interest rate Interest in Ending
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
formation balance(RM newly repaid in the the reporting balance
B’0000) increased in reporting period(RMB’ (RMB’0000)
the reporting period(RMB’ 0000)
period(RMB’ 0000)
0000)
Shenzhen
Xinfang Sharing Current
24.48 24.48
Knitting Co., company amount
Ltd.
Shenzhen
Sharing Current
Xiangjiang 4
company amount
Trade Co., Ltd
Shenzhen
Changlianfa
Sharing Current
Printing & 91.67 7.02 84.65
company amount
dyeing Co.,
Ltd.
Shenzhen
Haohao
Sharing Current
Property 417.95 77.5 495.45
company amount
Leasing Co.,
Ltd
Yehui
Sharing Current
International 113.8 7.7 121.5
company amount
Co., Ltd.
Shengbo（HK）Sharing Current
31.5 31.5
Co., Ltd. company amount
Shenzhen
Shenchao Controlled
Interest
Technology by the same 3,900.06 380.48 4,280.54
payable
Investment party
Co., Ltd.
Indluence of the related
rights of credit and liabilities
upon the company’s In the report period, Increase financial interest expense of RMB 3.8048 million.
operation results and
financial position.
5. Other significant related-party transactions
√Applicable □Not applicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic Technology
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Co., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen
Branch, First Tower Subbranch signed “ Contract on Consigned Loan ” , of whose main content is:
Shenzhen Shenchao Technology Investment Co., Ltd applied to the bank for RMB 200 million of construction of
dedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo Optoelectronic
Technology Co., Ltd The term of the loan is 108 months from the day when the first installment of entrusted loan
is transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercial loans
with a term of 5 years quoted by People's Bank of China minus 2%. In case of adjustment of such commercial
loan rate, the rate of commercial loans with a term of 5 years after adjustment minus 2% shall apply as interest
rate of entrusted loan from the first day of the next month after the adjustment of basic interest rate. The term of
the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the
Company.As of December 31,2016,The Company actually received a loan of RMB 120 million.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
http//www.cninfo.com.cn. Announcement
Announcement of related Transactions December 12, 2009
No.2009-55
Announcement of Resolutions of the Second http//www.cninfo.com.cn. Announcement
December 30,2009
provisional shareholders’ general meeting No.2009-57
Announcement of related Transactions http//www.cninfo.com.cn. Announcement
July 1, 2010
progress No.2010-26
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
2.Guarantees
□Applicable √ Not applicable
No any guarantees for the Company in the reporting period..
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB’0000
Actual
recover
Actual
Impairme of gain
Related Earning Principal gain/loss
Type of nt Estimate and
Trustee transactio Amount Start date End date reconition recovered in the
product provision( return loss in
n method actually report
If any) the
period
report
period
On
Januar
y 3,
2017,
the
redemp
tion of
Financial
the
Product of
produc
China principal-
December January t
Merchant No guarantee 80,000 - 80,000 16.44
29,2016 3,2017 comple
s bank d floating
ted,
income
resulte
d in
actual
income
of
RMB
164,40
0.
On
Financial Februa
Product of ry 17,
China principal- 2017,
December February
Merchant No guarantee 20,000 - 20,000 57.53 0 the
29,2016 17,2017
s bank d floating redemp
income tion of
the
produc
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
t
comple
ted,
resulte
d in
actual
income
of
RMB
575,30
0.
Total 100,000 -- -- -- 100,000 73.97 0 --
Source of fund Self fund
Principal and return due but not
covered
Lawsuit (if any) -
December 29,2016
On December 29, 2016, the Proposal about the Use of Part of its Own Funds for Entrusted
Wealth Management by the Company's Subsidiary of Shenzhen Shengbo Optoelectronics
Technology Co., Ltd was examined and approved in the 31 st board meeting of the company's
sixth session board of directors, agreed that Shenzhen Shengbo Optoelectronics Technology Co.,
Ltd (hereinafter referred to as \" Shengbo Optoelectronics \") shall, under the condition of ensuring
the safety of funds and not affecting the normal production and business activities and investment
Whether there will be entrusted
demands, use no more than RMB 1000 million of self-owned funds to commission the wealth
wealth management plan
management managed by commercial banks, securities companies, trust companies and other
financial institutions, with the concrete financial products that are bank financial products, trust
products, low risk products in asset management plans, upon the valid period from December 29,
2016 to December 28, 2018. For details, please see the Announcement on the Use of Part of its
Own Funds for Entrusted Wealth Management by the Company's Subsidiary of Shenzhen
Shengbo Optoelectronics Technology Co., Ltd disclosed on December 31, 2016(2016-68).
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII. Social responsibilities
1. Performance of poverty relieving responsibilities
□ Applicable √ Not applicable
2. Information of performance of other social responsibilities
(1)The protection of shareholder’s rights and interests
During the reporting period, the company operated with in accordance with laws and strictly conformed to the
requirements of laws and regulations such as The Company Law, The Securities Law and Corporate Governance
Guidelines for Listed Companies, and the company continuously perfected the governance structure and further
standardized the operation of the company. Adhered to the core system constituted by shareholders' meeting,
board of directors, board of supervisors and the independent director system, further improved the corporate
governance structure and the management system, constantly improved the company's internal control system in
the process of business management, adopted effective measures to prevent operational risks and soundly
safeguarded and protected the rights and interests of shareholders to lay a solid foundation for the company's
healthy, sustainable development. The company performed the obligation of information disclosure strictly in
accordance with laws and ensured the truthful, accurate, complete, timely and fair information discourse to all
shareholders, with no situation of selective disclosure.
It is determined this year to make more efforts to advance information disclosure and transparency, make the most
of multi-platform to protect the rights and interests due for investors, promptly answer the investors, improve
transparent information and safeguard medium and small shareholders’ legitimate interests.
(2) The protection of legal right of staff
We value human resource management, uphold “unity, vitality, enterprising” management philosophy, provide
official Labor Contract and various statutory social insurances and welfares according to Labor Law and related
laws and regulations, respect and protect employee’s legitimate interests and aim for harmonious, stable
labor-capital relationship. In 2016, the company established the company institutions including Measures for the
Administration of New Employee Orientation Training, Measures for the Administration of Accumulative Points
of Training Management and Measures for Internal Instructor Management, strengthened the staff training and
improved the overall quality of staff, thus to achieve a win-win effect between the company and employees.
Meanwhile, the company again sorted out the responsibilities of each department and gradually shaped a working
mode of clear duty, clear responsibility and effective cooperation; comprehensively combed the personnel module
of ERP system to achieve the dynamic management of personnel information; soundly improved the management
of personnel archives and promoted the scientific and standardized management of archives. Furthermore,
optimized and improved the human resource related work such as recruitment of key enterprises, technical rank
evaluation, training, assessment and incentive and remuneration and benefits, thus to fully mobilize the
enthusiasm of the staff and further strengthen the cohesion of the company.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
(3) The protection of environment
Modern “green enterprise” is company’s long-term goal, which will be achieved by green circulation in all
process of industry chain. In reporting period, no occurrence of severe environmental incident; noise, industrial
wastewater, exhaust emission, etc of production passed environmental protection monitoring and accorded with
related laws and regulations. Moreover, “green office” is promoted and various educational activities of
environmental protection are carried out to disseminate awareness of energy conservation and emission reduction
and coordinate production and environmental protection.
(4) The protection of consumer rights and interests
The company always sticks to the core values of \"honesty, responsibility first\". As the responsibility to the
customer is the source of enterprise value, the company committed to provide customers with professional,
personalized, full range of products and services.Sustainable customer-oriented service and impeccable product
quality motive our performance and sustainable development and guarantee long-term customers. And our
long-term partnership is established on the basis of initiative attention, quick responding and sincere care to
customers.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
Not applicable
Whether released Social Responsibility Report
□ Yes √No
XIX. Other material events
√ Applicable □ Not applicable
(a) The company planning a major asset restructuring
1. In the light of the company's controlling shareholder of Shenzhen Investment Holdings Co.,Ltd planning a
major event to the company, after making the application, the company's stock-trading was suspended from
August 4, 2016. On August 17, 2016, the afore-said major event was confirmed to be a major asset restructuring,
the company's stock trading was continuously suspended from August 18, 2016 because of the major asset
restructuring. For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2016-23 and 2016-25).
2. During the suspension period, the company strictly conformed to the relevant provisions stipulated by
CSRC and Shenzhen Stock Exchange to disclose the progress information of the relevant matters once every five
trading days. Before the suspension period reaching two months, the company held the 28th board meeting of the
sixth session board of directors, in which the Proposal of Applying for Extension of Suspension Period for the
Major Asset Restructuring was approved; before the suspension period reaching three months, the company held
the 2016-first extraordinary general shareholders' meeting on November 3, 2016, in which the Proposal about
Holding a General Shareholders' Meeting to Deliberate the Related Matters of the Extension of Suspension Period
was examined and approved; before the suspension period reaching four months, because the company had not
yet disclosed the restructuring plan, so the company released the Announcement on the Progress of the Major
Asset Restructuring in the Suspension Period on December 2, 2016. For details Juchao Website:
（http://www.cninfo.com.cn. (Announcement No.2016-47,2016-55 and 2016-59).
3. During the suspension period, the company actively promoted the major asset restructuring, and the
company has engaged the independent financial adviser, the law firm, the accounting firm, the asset appraisal
agency and other intermediaries to carry out the due-diligence, the audit and asset assessment, with active
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
communications and the demonstration in connection to the major asset restructuring plan. After the preliminary
intention was reached by both parties, the Framework Agreement was signed, and there were negotiations carried
out for the employee placement and the transaction agreement, thus reached a preliminary intention.
4. In the demonstration process of the scheme, based on the changes in the current domestic securities
market-environment and policies, the conditions for the implementation of the major asset restructuring are not
yet mature, so it will face many uncertainties if continue to promote the major asset restructuring. After reaching a
consensus by negotiations between the company and TCL Group, both sides intended to terminate the major asset
restructuring and both sides rescinded the Framework Agreement which was signed on October 17, 2016. On
December 16, 2016, the company held the 33rd board meeting of the sixth session board of directors, in which the
Proposal about the Termination of the Major Asset Restructuring and the Resumption of the Company's
Stock-trading was examined and approved. After the company's prudent decision-making, the company decided to
terminate the major asset restructuring. After the afore-said proposal was approved, both parties signed the
Agreement on the Termination of the Major Asset Restructuring. After the company made an application to
Shenzhen Stock Exchange, the company's stock-trading was resumed from December 19, 2016. For details Juchao
Website:（http://www.cninfo.com.cn. (Announcement No.2016-62).
(b) Matters of the Company's subsidiary-Shengbo Optoelectronics' introduction of strategic investors by the
way of capital increase and becoming shareholder
1. In order to solve the current operating difficulties of the Company's subsidiary-Shengbo Optoelectronics
and further improve the company's production technology and management level and profitability for polarizer
and make a stronger and bigger polarizer business, the company launched the work for Shengbo Optoelectronics'
introduction of strategic investors. After the audit, evaluation and the public listing, Jinjiang Group won the bid in
Shenzhen United Property Rights Exchange, thus according to the property rights trading rules, the company and
Shengbo Optoelectronics and Hangzhou Jinjiang Group Co., Ltd andJinhang Investment-which was set up by
Hangzhou Jinjiang Group Co., Ltd and Hangzhou Jinjiang Group Co., Ltd is the actual controller-jointly signed
the Capital Increase Agreement of Shenzhen Shengbo Optoelectronics Technology Co.,Ltd, and Jinhang
Investment shall fund RMB 1352.64 million in cash to subscribed 40% stake of Shenzhen Shengbo
Optoelectronics Technology Co.,Ltd. For details Juchao Website:（http://www.cninfo.com.cn. (Announcement
No.2016-19,2016-20,2016-21,2016-40 and 2016-63).
2. In order to achieve better results for the cooperation after the introduction of strategic investors and fully
utilize the resource advantages of state-owned enterprise and the mechanism advantages of private enterprise, on
the basis of the Capital Increase Agreement signed by the company and Jinjiang Group and Jinhang Investment,
they also signed the Cooperative Agreement. The Proposal about the Cooperative Agreement Signed by the
Company and the Strategic Investors of Shenzhen Shengbo Optoelectronics Technology Co., Ltd was examined
and approved in the company's 31st board meeting of the sixth session board of directors and then was approved in
the 2017-first extraordinary general shareholders' meeting. For details Juchao Website:（http://www.cninfo.com.cn.
(Announcement No.2016-67 and 2017-05).
(c) Progress of the second-phase project of No.6 line of TFT-LCD polarizer
During the reporting period, the second-phase project of No.6 line was in line with the schedule. The plant
decoration and purification and related projects, the host equipment manufacturing and the services bidding for
the host equipment installation have been completed. Currently, the procurement and bidding work for the
second-time matching projects is proceeding. It's expected to finish the installation and commissioning of No.6
line in 2017 and realize the mass-production at the end of 2017. As of December 31, 2016, the cumulative
investment for the second-phase project of No.6 line was RMB 283.0887 million, accounting for 40.42% of the
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
total investment of RMB 700.34 million-which had been adjusted, among which, the use of the raised funds was
RMB 55.7442 million and the use of self-owned funds and government funds was RMB 227.3445 million
XX.Material events of subsidiaries
√ Applicable □Not applicable
1. For the details of the company's subsidiary-Shengbo Optoelectronics' introduction of strategic investors by the
way of capital increase and becoming shareholder, please see the \"Nineteenth. Information about Other Important
Matters\" in the important matters of the fifth section of 2016 Annual Report.
2. On November 2016,The company's subsidiary-Shengbo Optoelectronics has again passed the national high-tech
enterprise recognition.,The Valid for three years. For details Juchao Website:（http://www.cninfo.com.cn.
(Announcement No.2017-03).
VI. Change of share capital and shareholding of Principal Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional 51,527,72 -51,457,9 -51,457,9
10.17% 69,750 0.01%
subscription 6 76 76
2.State-owned legal person 51,457,97 -51,457,9 -51,457,9
10.16% 0 0.00%
shares 6 76 76
3.Other domestic shares 69,750 0.01% 69,750 0.01%
Domestic Nature shares 69,750 0.01%
II.Shares with unconditional 454,994,1 51,457,97 51,457,97 506,452,0
89.83% 99.99%
subscription 23 6 6 99
405,563,8 51,457,97 51,457,97 457,021,8
1.Common shares in RMB 80.07% 90.23%
73 6 6 49
2.Foreign shares in domestic 49,430,25 49,430,25
9.76% 9.76%
market 0
III. Total of capital shares 506,521,8 100.00% 0 0 506,521,8 100.00%
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
49
Reasons for share changed
√ Applicable □Not applicable
During the reporting period, the restriction term of the 51,457,976 shares which the company non-publicly issued
to the company’s controlling shareholder of Shenzhen Investment Holding Co., Ltd in 2013 was expired, thus it
shall newly add 51,457,976 tradable shares which were free from the restriction and being tradable on March 29,
2016. Refer to Company Announcement No. 2016-03.on March 25, 2016 at JuChao information network
http://www.cninfo.com.cn)
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In RMB
Number of
Number of Restricted Shares Date of
Initial Restricted Increased Reason for
Shareholder Name Unrestricted in the End of the Restriction
Shares Restricted Shares Restricted Shares
Shares This Term Term Removal
This Term
Commitment to
non-public offer
ing during the se
cond phase proje
ct of Shen Textil
Shenzhen
e shares subscrib
Investment 51,457,976 51,457,976 0 0 March 29,2016
ed lock handle, l
Holdings Co., Ltd.
ocking Shen Tex
tile non-public o
ffering on the st
ock market of 3 6
months
Total 51,457,976 51,457,976 0 0 -- --
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
preferred shareh
Total number Total The total number o
olders at the end
of common shareholders at f preferred shareho
of the month
shareholders at the end of the lders voting rights
41,555 46,078 0 from the date of
the end of the month from the restored at period-e
disclosing the
reporting date of disclosing nd(if any)(See
annual report(if
period the annual report Notes 8)
any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number of share pledged/frozen
Proportio Changes
of shares of of
Shareholders Nature of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
insurance Co., Ltd. State-owned
－Self funds Legal person
Huatai Portfolio
Strategy investors or general legal
person becomes top 10 shareholders
Nil
due to rights issued (if any )(See Notes
3)
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
Related or acting-in-concert parties
non-restricted negotiable shares and between the top ten shareholders holding
among shareholders above
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.
Shareholding of top 10 shareholders of unrestricted shares
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
RMB Common
234,069,436
shares
RMB Common
16,129,032
shares
RMB Common
6,384,816
shares
RMB Common
3,408,341
shares
Foreign shares
placed in
2,900,814
domestic
exchange
Foreign shares
placed in
2,443,526
domestic
exchange
RMB Common
1,442,600
shares
RMB Common
1,239,109
shares
RMB Common
1,210,000
shares
RMB Common
1,181,694
shares
Explanation on associated relationship Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
or consistent action among the top 10 Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,
shareholders of non-restricted the Company did not whether there is relationship between the top ten shareholders holding
negotiable shares and that between the non-restricted negotiable shares and between the top ten shareholders holding
top 10 shareholders of non-restricted non-restricted negotiable shares and the top 10 shareholders or whether they are persons
negotiable shares and top 10 taking concerted action defined in Regulations on Disclosure of Information about
shareholders Shareholding of Shareholders of Listed Companies.
Explanation on shareholders
The company's shareholder- Zhu Ye-via Goulian Securities Co.,Ltd's clients' credit-trading
participating in the margin trading
guaranteed securities account-holds 1,239,109 shares.
business(if any )(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
Investment and
Management of
State-owned Share Right;
Development and
Shenzhen Investment
Peng Haibin October 13,2004 767566421 Operating of Land
Holdings Co., Ltd.
Allocated by the
Government, Strategic
Investment and Service for
Emerging Industry
Shen Property A（000011），Quantity of shares 380.38 million，Shareholding ratio：63.82%； Shenbo
A（000019），Quantity of shares72.25 million，shareholding ratio：16.00%；Shen Real estate
Equity of other
A(000029),Quantity of shares 642.88 million，Shareholding ratio：63.55%；Shen Universe A
domestic/foreign listed
（000023），Quantity of shares 14.44 million，shareholding ratio：10.41%；Pingan（601318），
company with share
Quantity of shares 962.72 million，shareholding ratio：5.27%；Guosen Seurities（002736），Quantity
controlling and share
of shares 2749.52 million，shareholding ratio：33.53%；Guotai Junan（601211），Quantity of shares
participation by
624.07 million，shareholding ratio：8.18%；Telling holding（000829），Quantity of shares
controlling shareholder in
131,917,569，shareholding ratio：13.76%；Etop information（834386），Quantity of shares 42
reporting period
million，shareholding ratio：60.00%；Inspection test（836325），Quantity of shares：20 million，
shareholding ratio：40.00%.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
State-owned Assets Regulatory Performing the responsibilities
Peng Haibin July 31,2004 K3172806-7
Commission of Shenzhen of investors on behalf of the
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Municipal People's Government state and supervising and
managing state-owned assets
according to authorization and
law.
Equity of other
domestic/foreign listed Except for Shenzhen Holdings Co., Ltd., the holding shareholder of the company, other domestic
company with share
and foreign listed companies of the equity held by the actual controller haven’t been shown in the
controlling and share
participation by list of the top ten shareholders of the company.
controlling shareholder in
reporting period
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% shareheld
□Applicable √Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
The Company had no preferred shares in the reporting period.
VIII. Information about Directors, Supervisors and Senior Executives
I. Change ein shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
Starting Expiry held at increased decreased held at
Office changes
Name Positions Sex Age date of date of the at the at the the
status increase/d
tenure tenure year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Board
chairman, January August
Zhu Jun In office Male 53 0 0 0 0
General 16,2015 15,2016
Manager
Wang May August
Director In office Male 52 0 0 0 0
Yongjian 4,2010 15,2016
May August
Lin Lebo Director In office Male 55 0 0 0 0
20,2015 15,2016
Jin Director, August August
In office Female 45 0 0 0 0
Zhenyuan CFO 16,2013 15,2016
Independ
Zhang May August
ent In office Male 57 0 0 0 0
Yong 4,2010 15,2016
Director
Independ
Shi May August
ent In office Female 49 0 0 0 0
Weihong 4,2010 15,2016
Director
He Qiang Independ In office Male 64 August August 0 0 0 0
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
ent 16,2013 15,2016
Director
Chairman
of the
Wang superviso May August
In office Male 49 0 0 0 0 0
Weixing ry 20,2015 15,2016
committe
e
Superviso April August
Li Wei In office Male 51 0 0 0 0 0
r 21,2009 15,2016
Employee
Zhang August August
superviso In office Male 41 0 0 0 0 0
Xiaodong 9,2013 15,2016
r
Feng Deputy July August
In office Male 54 0 0 0 0 0
Junbin GM 30,2003 15,2016
Zhu Deputy Septembe August
In office Male 52 93,000 0 0 0 93,000
Meizhu GM r 23,2008 15,2016
Secretary
Jiang to the January August
In office Female 46 0 0 0 0 0
Peng board of 16,2015 15,2016
directors
August April
Cao Jin Director Dimission Female 54 0 0 0 0 0
16,2013 16,2016
Total -- -- -- -- -- -- 93,000 0 0 0 93,000
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Cao Jin Director Dimission April 16,2016 Due to Resignation for personal reasons
III.Posts holding
Professional background, work experience and main duties in the Company of existing directors, supervisors and senior management
(1) Director
Zhu Jun, Male, Born in 1963, Master degree，senior engineer , member of the Communist party, He served
successively as secretary of Lige Village, Yutai County, Shandong Province, workshop director of Shandong
Jining Cotton Mill, deputy factory director of Jining Chemical Fibre Factory, office director of Jining Textile
Industry Company, deputy county head of Wenshang County, Shandong Province, office director of Shandong
Textile Department, chief of Personnel Education Division, manager of Enterprise management Dept, general
manager assistant and Deputy General Manager of the Company. He served as secretary of Party
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Committee ,Board Chairman and General manager of the Company, Director and Vice Board chairman of Tianma
Microelectronic Co., Ltd.,and board charman of Shengbo Optoelectronic Technology Co., Ltd.
Wang Yongjian , Male, Born in 1964,Master degree, Economic engineer , member of the Communist party, He
served successively as Financial Analyst Financial Manger and Chief Financial Officer of U.S.Digital Equipment
(China) Company, Senior staff and principal staff of Shenzhen Government Economic Restructuing Office,
Manager of China South Securities Co., Ltd., Deputy General Manager of Administrative Headquarters, Deputy
Director of office, the board secretary of Shenzhen Shahe Industrial Group ., Deputy General Manager of Shahe
Industrial Company, He served as Director and General Manager of Shenzhen Holdings Invetment Co., Ltd. He
served as Director of the Company.
Lin Lebo , Male, born in 1961, Bachelor Degree, auditor, member of communist party. He used to be deputy
director, director, vice President of the union, party branch secretary in Shenzhen Audit bureau;served as director
in shenzhen auditing firm, executive vice President in Shijixingyuan Co., Ltd.,, manager of audit department and
secretary of the party branch in Shenzhen investment management company, manager of asset management
department and secretary of the party branch in Shenzhen investment management company;used to serve as
chairman of the board and party secretary in and shenzhen coptic green industry development co., Ltd., deputy
manager in shenzhen Tongchan industrial co., Ltd., director, general manager, deputy party secretary in shenzhen
Tongchan packaging group co., Ltd., chairman of the supervisory board in inspection group in the southern
electronic product testing (shenzhen) Co., Ltd.. Now serve as Executive director and Deputy General Manager of
Shenzhen Shenchao Technology Investment Co., Ltd. He served as Director of the Company.
Jin Zhenyuan, Female, born in 1971, Master Degree, Senior Accountant, CPA, international financial management
division. She used to serve as Shenzhen Lionda Group Chief Accountant, Finance Minister in Shenzhen Oriental
Enterprise Ltd., Finance Minister in Shenzhen new century drinking Co., Finance Director in Yili Industrial Co.,
Ltd. of Shenzhen, Finance Minister in Shenzhen, China Transportation Industry Corporation, director and Chief
Financial Officer in Shenzhen City-Property Group, , Director in Shenzhen Beauty Star Co., Ltd., Director and
Chief Financial Officer of Shenzhen Wuzhou Guest House, LLC. She now serve as the Director and Chief
Financial Officer of the Company, She served as Director of Shengbo Optoelectronic Technology Co., Ltd..
Zhang Yong, Male, Born in 1959, Doctor of laws , Lawyer, once served successively as Deputy director of
International Economic Law Dept of China University of Political Science ,Associate professor of International
Economic Law Dept of Wuhan University, Judge of Shenzhen Intermediate People’s Court Second chamber and
Third chamber,president and secretary of Party Committee of Shenzhen Lawyer Association, CPPCC member of
Shenzhen, He served as independent Director of Shenzhen Agricultural Products Co., Ltd., He now serves as
Partner of Guangdong Renren law firm, first level lawyer, a member of the Shenzhen Municipal People's
Government Office of Legislative Affairs legal expert advisory committee, the executive director of the
Guangdong Provincial Law Association, vice president of the Shenzhen Municipal Law, a member of China
International Economic and Trade Arbitration Commission Expert Advisory Committee, a member of Shenzhen
Arbitration Commission, members of the Advisory Committee for Huizhou Arbitration Commission , the
Company's independent directors.
Shi Weihong, Female, Born 1967, Doctor, certified public accountant, Certified asset appraiser, Certified tax agent,
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
once served successively as Auditor, Project Manger and Director of Guangming Certified public Accountants,
she served as Independent Director of Shenzhen Tili(Group) Co., Ltd, as Independent director of Shenzhen SEG
Samsung Co., Ltd. Senior partner of Shenzhen Guangming Certified public Accountants, she now serves as
Partner of Accounting Firm and Independent director of the Company.
He Qiang , Male, born in 1952, Professor of finance at the Central University of Finance and Economics, Ph.D.
tutor, Director of Securities and Futures Institute, enjoy special government allowances. He was a member of 11th
and 12th CPPCC National Committee, of China Finance Society, the China Investment Association, of China
Economic and Social Council of the other positions. He served as independent director in the Air Investment
Holding Co., Ltd., in Hengyi Petrochemical Co., Ltd., in Golden State Securities corporation, Dongbei Securities
and in the Company. the Company's independent directors.
（2）Supervisor
Wang Weixing, male, born in 1968, graduate degree, economist, member of Communist Party of China, has
served successively as cadre of Qingdao TV Factory, staff and senior staff member of Shenzhen Administration of
Industry and Commerce (price bureau) Futian, Che Kung Temple branch, senior staff member and principal staff
member of Shenzhen Administration of Industry and Commerce (price bureau) registration sub-office, principal
staff member of Shenzhen General Asset Management Office, deputy director of Shenzhen Asset Management
Office collective enterprise department, deputy director of general office of Shenzhen Asset Management Office,
deputy director of petition acceptance office of Shenzhen Asset Management Office, director, vice-secretary of
CPC and secretary of discipline commission of Shenzhen Tongchan Packaging Group Co., Ltd, director,
vice-secretary of CPC and secretary of discipline commission of Shenzhen Tongchan Group Co., Ltd and
currently takes the post of chairman of supervisory board of the Company.
Li Wei, Male, Born in 1965, Master degree, Economic engineer, member of the Communist party,once served
successively as Staffer of Shenzhen Aihua Electronics Company, Cadres of Shenzhen Municapal Taiwan Affairs
Office,Assistant director of Office ,Secretary of Board Chairman of Zhongshen Internation Cooperation
office, .Assistant Manager of Office and Deputy Director of Assets Dept of Shenzhen Trade Investment Holding
Company,Deputy Director of Law Affair Dept and Deputy director of Enterprise No2.Dept of Shenzhen
Investment Management Co., Ltd. Deputy director of Enterprise and No.1 Dept and No2.Dept of Shenzhen
Holdings Investment Co., Ltd., He new served as Deputy General Manager of Shenzhen Shentou Investment
Development Co., Ltd. and Supervisor of the Company.
Zhang Xiaodong , Male, born in 1975, Master Degree, communist party member. He joined the company in
August 1999, used to serve as manager assistant, manager of subordinary of Shenzhen textile (Holdings) Co., Ltd.,
manager in business management department; used to be manager in Shenzhen Beautify Centenary clothing co.,
Ltd. He new serve as party department minister and superior of the company.
（3）Senior Executives
Feng Junbin , Male, Born in 1962, College degree ,Auditor, He served successively as special enterprise controller
of Guangdong Dapu County Finance Bureau, deputy section head of Guangdong Fengshun County, director of
Audit Dept., manager of Enterprise Management Dept., general manager assistant and supervisor of the Company,
he served as Deputy general manager of the Company. And chairman of the supervisory committee of Shengbo
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Optoelectronic Technology Co., Ltd.
Zhu Meizhu, Male, Born in 1964, Master degree, Senior engineer, once served successively as chief Deputy
general Manager of Enterprise Management Dept of the Company, Director of R& D Center, Assistant General
Manager, He served as Deputy general Manager of the Company and director of Shenzhen Shengbo
Optoelectronic Technology Co., Ltd.
Jiang Peng, Female, born in 1970, Bachelor Degree, member of communist party, She served as officer of the
Secretary Office of Shandong Fishery Group Co.,Ltd., Deputy Director of the Secretary office and Securities
affairs Representative of Shandong Zhonglu Oceanic Fisheries Co., Ltd., Securities Representative of Huafu
Holding Co., Ltd., Securities affairs representative and Officer of the Secretariat of the Board of the Company,
now serves as the secretary of the Board of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharting date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
General
Wang Yongjian Shenzhen Investment Holdings Co., Ltd. May 5,2016 Yes
Manager
Wang Yongjian Shenzhen Investment Holdings Co., Ltd. Director May 19,2016 Yes
Shenzhen Shenchao Technology General January
Lin Lebo Yes
Investment Co., Ltd. Manager 19,2015
Deputy
Shenzhen Shentou Porperty Developement
Li Wei General August 6, 2014 Yes
Co., Ltd.
Manager
Offices taken in other organizations
□Applicable √Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
In the report period, The remuneration of directors and senior management paid by the company is determined by
“Director Compensation Management System” and “Executive Compensation Management and Evaluation
System”, the remuneration of independent directors is determined as per the resolution of shareholders’ meeting,
and the remuneration of supervisors paid by the company is determined by their position held in the company.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Remueration to directors, supervisors and senior executives in the reporting period
Unit ：RMB’0000
Total Remuneration
remuneration actually receivect
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Board Chairman,
Zhu Jun Male 53 In office 60.11 No
General Manager
Wang Yongjian Director Male 52 In Office 0 Yes
Lin Lebo Director Male 55 In office 0 Yes
Jin Zhenyuan Director, CFO Female 45 In Office 48 No
Independent
Zhang Yong Male 57 In office 8 No
Director
Independent
Shi Weihong Female 49 In Office 8 No
Director
Independent
He Qiang Male 64 In office 8 No
Director
Chairman of the
Wang Weixing supervisory Male 49 In Office 41 No
committee
Li Wei Supervisor Male 51 In office 0 Yes
Employee
Zhang Xiaodong Male 41 In office 32.58 No
supervisor
Feng Junbin Deputy GM Male 54 In Office 56.55 No
Zhu Meizhu Deputy GM Male 52 In office 56.55 No
Secretary to the
Jiang Peng Female 46 In Office 36.74 No
board of directors
Cao Jin Director Female 54 Dimission 33.52 No
Total -- -- -- -- 389.05 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person）
Number of in-service staff of the main subsidiaries（person） 1,213
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Total number of the in-service staff（person） 1,256
Total number of staff receiving remuneration in the current
1,256
period（person）
The number of the parent company and the main subsidiary’s
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production
Sales
Technical
Financial
Administrative
Service personal
Total 1,256
Education
Classified according by education background Number of persons（person）
Postgraduate or above
Universities
Colleges
Mid-school or below
Total 1,256
2. Remuneration policies
In 2016, the Company carried out management for employees’ compensation in strict accordance with the
state’s relevant laws and regulations and guaranteed the fairness and reasonability of the compensation, which
offered relevant rewards and incentives to the employees, accelerate them to jointly develop with the Company ,
and simultaneously reflected humanistic care of the Company.
3.Training pllan
Company targeted to improve professional skills and support company's operations, it required each post to
complete the forms of Training Needs Questionnaire, Internal Training Courses Recommendation Form,
Employee Individual Development Plan, and company formulated personal and company annual training plans in
accordance with these forms, and simultaneously balanced individual with company and internal training with
external training. Company carried out demand investigation and training evaluation, etc when organizing training
projects to safeguard training effectiveness.
In 2016, the Company carried out several training including Induction Training and Practice For New
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Employees, Standard Governance Training For Listed Companies and Sand Table Simulation for Non-financial
Staffs’ Financial Management, where the Compnay acquired good effect. Meanwhile, demand research and
training assessment were carried out in the process of each training project to ensure the training effect, which
made the Company’s training plans and contents meet with the overall demands for each position and the
Company’s development,and continuously improved the general quality of the Company’s existing staffs to
realize the win-win for both the staffs and the Company.
4. Outsourcing situation
□ Applicable √ Not applicable
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
In the reporting period, the company regulated operations and strengthen risk control in strict accordance with
Securities Law, Corporation Law, the Shenzhen Stock Exchange Standard Operation Instructions for Main-Board
Listed Companies, Corporate Governance Standards for Listed Companies and other related laws and regulations,
to ensure a healthy and stable development. At present, the basically sound governance system, normative
business operation and impeccable corporate governance structure meet the requirements of the normative
documents for regarding corporate governance of listed companies issued by the China Securities Regulatory
Commission.
In 2016, company held a total of 2 general meetings, convened general meetings, standardized voting procedures
to safeguard the effectiveness and legality in strict accordance with the regulations and requirements of
Corporation Law, Articles of Corporation and Rule of Procedure of Shareholders' Meeting. Companies actively
protected the voting rights of minority investors, and general meetings were convened in the form of live network
to adequately assure small investors of their rights to exercise.
In 2016, the board of directors held 12 general meetings, and the convening and voting procedures were all
conducted in strict accordance with the Articles of Corporation and Rule of Procedure of Shareholders' Meeting.
All the directors performed directors ' duties, exercise directors’ rights, attended related meetings and actively
participated in the training and became familiar with relevant laws and regulations with serious, diligent and
honest attitudes. Independent directors independently performed their duties in strict accordance with Articles of
Corporation, The independent director system and other relevant laws and regulations, expressed fully their
independent opinions on corporate operation, decision-making, and important matters, etc. Strategy, audit,
remuneration, evaluation, nomination committees were established under board of directors, all committees
functioned properly, and performed duties such as internal audits, compensation assessment, nomination of senior
management personnel, and provided scientific and professional advisory opinions for board of directors’
decision-making.
In 2016, the board of supervisors held 6 meetings. The board of supervisors strictly followed the requirements of
Articles of Corporation and Rules of procedure of the board of supervisors and other relevant laws and regulations,
supervised the legal compliance of the duties performed by company's financial personnel and directors, managers
and other senior management personnel in the aim of maintaining the legitimate rights and interests of the
company and its shareholders. All the supervisors fulfilled their obligations, exercised their rights according to the
laws. The convening and voting procedures of the board of supervisors were legal, and the resolutions were legal
and valid. The establishment and implementation of board of supervisors played an active role in improving
corporate governance structure and regulating corporate operations.
In 2016, we further increased information transparency, accomplished investors’ protection and
propaganda work. In the reporting period, except disclosing information in a real accurate, timely, fair and
complete manner in accordance with the regulatory requirements,
Moreover, the Company carried out the special work Blue Sky Action according to Notification on
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Implementing Special Work where Investors Protect Blue Sky Action published by Shenzhen Securities Bureau to
enhance the quality of information disclosure as the key point, to continuously perfect the communication
mechanism and to promote the normative development of the Company. Meanwhile, the Company continued to
perfect the voting mechanism for minority investors. In 2016, the minority investors’ voting was counted
separately at each of the two shareholder’s meetings, and whose result was disclosed at the decision
announcement at the shareholder’s meeting, which fully guaranteed the execution of power of the minority
investors.
Moreover, the Company carried out the special work Blue Sky Action according to Notification on
Implementing Special Work where Investors Protect Blue Sky Action published by Shenzhen Securities Bureau to
enhance the quality of information disclosure as the key point, to continuously perfect the communication
mechanism and to promote the normative development of the Company. various platforms were made full use of,
such as telephone, e-mail, website, especially the interactive platform of investors in Shenzhen Stock Exchange,
solved questions brought by investors, and communicated with medium and small investors interactively, and
ensure all the investors obtained equal opportunities for informal access. Meanwhile, in the aim of improving the
transparency of listed companies, company accepted investors’ on-site investigation to have comprehensive
understandings of the company's business situation through face-to-face communication with management, also
urged the company established a responsibility to return on investors, improved and enhanced the corporate
governance standards. Meanwhile, the Company continued to perfect the voting mechanism for
minority investors. In 2016, the minority investors’ voting was counted separately at each of the two shareholder’s
meetings, and whose result was disclosed at the decision announcement at the shareholder’s meeting, which fully
guaranteed the execution of power of the minority investors.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
√Yes □No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
\ Shenzhen Investment Holdings Co., Ltd., the holding shareholder of the company, is a Shenzhen SASAC
enterprise. The company has complied with the relevant provisions on the state-owned asset management of
holding shareholders to report non-public information to holding shareholders, mainly including:Letters submitted
monthly index table; fee schedule during the reporting, financial assets table, summary quarterly deposits and
borrowings and financing.In order to strengthen the management of non-public information, the company has
strictly controlled the scope of learners, standardized the process of information delivery and strictly implemented
as per the “Management System on Learner of Insider Information”, took practical measures to prevent inside
information leaks and insider trading.
In addition, there is no difference among the governance of the company, “Company Law” and the relevant
provisions of China Securities Regulatory Commission.
II. Independence and Completeness in business, personnel , assets, organization and finance
The code of conduct of the controlling shareholders of the company did not go beyond the general meetings
directly or indirectly to interfere with the decision-making and business activities, the company had independent
and complete business and autonomous operation capacity , achieved “five point separation” in respect of
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
personnel, financial, asset, agencies, business.
III. Competition situations of the industry
□ Applicable √ Not Applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
Provisional Announcement
Annual Genral
shareholders’ 0.01% April 21,2016 April 22,2016 No.2016—16
Meeting of 2015
General Meeting www.cninfo.com.cn
The first provisional
Announcement
shareholders’ Annual General
0.19% November 3,2016 November 4,2016 No.2016—54
General meeting in Meeting
www.cninfo.com.cn
2016
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Zhang Yong 12 4 8 0 0 No
Shi Weihong 12 4 8 0 0 No
He Qiang 12 1 11 0 0 No
Number of general meetings attended
by independent directors as non-voting
delegates
Notes to failure to personally attend Board Meetings Successively Twice
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
Nil
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√ Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
In the report period, the independent directors of the Company seriously fulfilled duties according to the
requirement of supervision laws and regulations and System of the Company’s Independent Director：
1.The independent directors timely attended the board meeting convened by the Company, and attended
meetings related to the shareholder’s meeting. Beforehand,, we carefully reviewed the information of the meeting.
We fully utilized our own professional advantages and enterprise management experience to put forward
reasonable opinions and suggestions for the proposal and to give independent comment for the related party for its
capital occupation, internal control, profit distribution, audit institution recruitment, usage of idle raised funds,
capital increment and share expansion for introducing strategic investors, plannings for the follow-up suspension
of significant asset reorganization, terminating the plannings for significant asset reorganization and the entrusted
finance management for its own capital, which fully expressed the guidance and supervision function of the
independent directors.
2.The independent directors actively participated in the work of the board’s special committee, and gave
independent comments for events involved with the Company’s periodical report, duty performance and further
employment of annual audit institution, self-assessment report of internal control, compensation assessment
system for senior managers of 2015, which factually maintained the interest of the Company and the shareholders’,
especially the public shareholder’s, and which benefited the board’s core function at corporate governance.
3. The independent directors kept communicating with the Company’s managements and thoroughly debrief
relevant personnel, and focused on the construction progress of Project Line 6 of TFT-LCD polaroid glass of
Period II as well as the progress of Shengbo Optoelectronic’s capital increment and share expansion for
introducing strategic investors, which enabled the independent directors to timely comprehend and master the
progress of the Company’s significant issues.
See more details at Work Report of the Independent Directors of 2016 disclosed by the Company at
http://www.cninfo.com.cn on March 31, 2017.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The independent directors of the company are the key members of all professional committees of the Board of
Directors, and are in the majority and the conveners of Audit Committee, Remuneration and Appraisal Committee
and Nomination Committee. Also, all the three independent directors can attend the daily meeting held by every
special committee on time.
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
(1) Audit Committee: during the reporting period, the Audit Committee has held two meetings, carefully
examined the regular reports of the company and effectively implemented the work schedule of annual reports.
Also, the Audit Committee has reviewed the internal control of the company, supervised the effective
implementation of internal control, the self-assessment of internal control. Before the board meeting for
deliberating annual report was convened, the Company will strengthen the communication with the certified
public accountant for annual audit, carefully review related information,and will learn about and master the
arrangement and progress of accountant’s audit. The Company will interview the accountant for annual audit to
effectively communicate with the accountant about the problems found during the audit progress, will supervise
and examine the disclosed information, will ensure the Company’s situation will be factually reflected by the
audit report, and will make a comprehensive assessment for accountant for the completion situation of the annual
work and the practising quality. In the report period, the Company will convene meeting sand formed solutions
for audit institution recruitment, self-assessment report of internal control and financial final statement
During the reporting period, Proposal on Carry a meeting ficused on hiring audit institutions, self-assessment
report of the internal control, the Final Accounting Report and other matters and reach a resolution.
(2) Remuneration and Appraisal Committee: During the reporting period, the Remuneration and Appraisal
Committee has held one meetings, During the reporting period, Carry a meeting ficused on 2015 performance
appraisal of senior management and reach a resolution.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection aginst any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company complies with “Executive Compensation Management and Evaluation System” to conduct the
evaluation for the accomplishment of annual work of the senior executives. The salaries of the senior executives
are determined according to the duty scope, post value, individual ability, wages level on the market, economic
profits of the company and operation goal accomplishment of senior executives with adhering to the principle of
market orientation, responsibility with unified right, and incentive and equal restriction. During the reporting
period, the senior executives are all qualified in 2014 after evaluation. The directors and the general manager have
conducted the feedback on the annual appraisal evaluation for the senior executives in accordance with the
“Executive Compensation Management and Evaluation System” and proposed the recommendation for
improvement.
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
√ Yes □No
About the significant Defects of the internal control found in the internal control self-assessment report in the reporting period
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
The identification and rectification of deficiency of the internal control:
1. The identification and rectification of deficiency of the internal control in the financial statement
In accordance with above identification standard of deficiency of the internal control in the financial statement, there is no the
serious and important deficiency of internal control in the financial statement during the reporting period.
2.The identification and rectification of deficiency of the internal control except for that of the financial statement in accordance
with above identification standard of deficiency of the internal control except for that of the financial statement, there is no the
serious and important deficiency of internal control except for that of the financial statement during the reporting period.
2.Self-evaluation report on internal control
Disclosure date of appraisal report on
March 31,2017
internal control
Disclosure index of appraisal report on Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control
internal control of Peking Certified Public Accountants (QXSZ(2017)No.1555
Proportion of total unit assets covered by
appraisal in the total assets of the
100.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
100.00%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
In the following circumstances, the
The defects related to financial reports were company was identified as existing
divided into general defects, important non-financial –reporting related
defects and significant defects according to significant defects of internal controlling
their severity. Significant defects referred to defects:
one or multiple combinations of controlling The business activities of the company
defects, which may lead to serious deviation seriously violated national laws and
from the controlling objectives. Important regulations; (2) The decision-making
defects referred to one or multiple process of \"Three-Importance&
Qualitative criteria
combinations of controlling defects, and One-Large\" were unscientific, leading to
their severity and economic consequences major decision errors, and causing major
were below significant defects, but they property loses to the company; (3)
could still lead to serious deviation from the Massive loss of key posts or technology
controlling objectives. General defects talents; (4) The controlling system
referred to other internal controlling defects involving important business fields of the
which couldn't constitute significant defects company failed; (5) It Caused serious
or important defects. negative effects on business of the
company, and the effects couldn’t be
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
eliminated; (6) The evaluation results of
internal control were significant defects,
and couldn’t get effective rectification.
Important defects referred to one or
multiple combinations of controlling
defects, and their severity and economic
consequences were below significant
defects, but they could still lead to
serious deviation from the controlling
objectives. General defects referred to
other internal controlling defects which
couldn't constitute significant defects or
important defects.
Misstatement amount of financial statement
fell into the following intervals: significant
defects: Misstatement amount ≥ 1.5% of
total revenue; Misstatement amount ≥ 10%
of gross profit; Misstatement amount ≥ 1%
of total asset; Misstatement amount ≥ 5% of
net asset. significant defects: 0.5% of Total
revenue ≤Misstatement amount ＜ 1.5% of
total revenue; 5% of gross profit
≤Misstatement amount ＜ 10% of gross
Quantitative criteria Not applicable
profit; 0.5% of Total asset ≤Misstatement
amount ＜ 1% of total revenue; 3% of Net
assets ≤Misstatement amount ＜ 5% of net
assets. General defects:0% of total revenue
＜Misstatement amount＜0.5% of Total
revenue; 2% of gross profitt ＜Misstatement
amount＜5% of total profit; 0% of total
assets ＜Misstatement amount＜0.5 of total
assets; 0% of net assets ＜Misstatement
amount＜3% of net assets.
Number of major defects in financial
reporting（a）
Number of major defects in non financial
reporting (a)
Number of important defects in financial
reporting（a）
Number of important defects in non
financial reporting（a）
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：
According to the relevant requirements of the “Audit Guideline of Enterprise Internal Control” and the Chinese CPA criteria, the
company has audited the effectiveness of internal control of the financial statement of Shenzhen Textile (Holdings) Co., Ltd.
(Shenzhen Textile) at the date of December 31, 2016.
1. The responsibility of enterprise for the internal control. According to the provisions of “Fundamental Norms for Enterprise
Internal Control”, “Operation Guideline of Enterprise Internal Control” and “Evaluation Guideline of Enterprise Internal Control”,
the company has established, perfected and effectively implemented the internal control, and made an evaluation for its
effectiveness, which are the responsibilities of the Board of Directors of Shenzhen Textile.
2. The responsibility of CPA. The company shall be responsible for the expression of audit opinions on the effectiveness of internal
control in the financial statement and the disclosure of serious deficiency of internal control except for the financial statement on
the basis of the implementation of audit.
3. The inherent limitation of internal control. There is the possibility of unpreventable errors. In addition, due to the change of
situation, the inappropriate internal control is maybe shown, or the control policy and the abidance of procedure can be reduced.
Based on the audit results of internal control, the future internal control is expected to have a certain risk.
4. The audit opinions of internal control in the financial statement. The company believes that Shenzhen Textile has maintained the
effective internal control of the financial statement in all the major aspects according to “Fundamental Norms for Enterprise
Internal Control” and the relevant provisions on December 31, 2016.
Peking Certified Public Accountants(Special General Partnership)
Chinese C.P.A.
Li Yong
March 29, 2017 Chinese C.P.A.
Lan Tao
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
March 31,2017
internal control (full-text)
Juchao Website: （http://www.cninfo.com.cn）;Audit reort of internal control of Peking
Internal audit report’s opinion Certified Public Accountants (QXSZ(2017)No.1555
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant
No
defectin non-financial report
Has the CPAs issued a qualified auditor’s report of internal control .
Shenzhen Textile(Holdings) Co., Ltd. 2016 Annual Report
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
No
XI. Financial Report
I. Audit report
Type eof audit opinion Standard Unqualified Audit Opinion
Date for signing the auditor’s report March 29,2017
Peking Certified Public Accountants(Special General
Name of audit firm
Partnership)
The audit report number Qin Xin Zi【2017】No.1556
Name of the certified accountants Li Yong , Lan Tao
Auditors’ Report
Qin Xin Shen Zi (2017)]No. 1556
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：
We audited accompanying financial statements of Shenzhen Textile (Holdings) Co., Ltd.(the “Company),
including Consolidated and parent Company balance sheet as of December 31, 2016, and the Parent Company and
Consolidated Income statement, The parent company and Consolidated cash flow statement ,The parent Company
and Consolidated Statements of Changes in equity for the year then ended, and the notes to the financial
statements .
1. The responsibility of the Management for the financial statements
Shenzhen Textile (Holdings) Co., Ltd ’s. management is responsible for the preparation and fair presentation of
these financial statements this responsibility includes : (1) Prepare the financial statements according to business
enterprises regulation, so that making reasonable accounting estimate;(2) Design, implementation and
maintenance of internal control related to the preparation of financial statements so that financial statements are
free from material misstatement caused by fraudulent practices or errors.
2. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit in
accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese certified
public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable
assurance as to whether financial statements are free from material misstatement.
Audit involves carrying out audit procedure to obtain the audit evidences about the amounts and disclosure of
financial statements. The selected audit procedure relies on the judgment of certified public accountants, including
the appraisal of risk of material misstatement of financial statements used by fraudulent practices or errors. While
appraising risks, we considered the internal control related to the preparation of financial statements to design
proper audit procedure. The audit also includes the appraisal of suitability of accounting policies selected by the
management, the reasonableness of accounting estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing
audit opinion.
3. Audit opinion
In our opinion, the financial statements of the Company Wharf present fairly, in all material respects, the
company’s and consolidated financial position as of 31 December 2016, and the Company’s and consolidated
results of operations and cash flows for the year then ended in accordance with Accounting Standards for
Business Enterprises.
Peking Certified Public Accountants(Special General Partnership)
Chinese C.P.A.
Li Yong
Chinese C.P.A.
Lan Tao
March 29,2017
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
Consolidated balance sheet
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. December 31,2016 In RMB
Items Notes V Year-end balance Year-beginning
balance
Current asset：
933,856,912.73 752,314,871.53
Monetary fund （1）
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations accounted into
current income account
Derivative financial assets
（2） 41,908,315.45 18,841,745.16
Bill receivable
220,222,019.41 182,766,372.05
Account receivable （3）
（4） 6,773,323.14 7,853,818.19
Prepayments
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
（5） 6,652,883.11 30,298,938.80
Interest receivable
Dividend receivable
（6） 67,272,556.72 45,133,672.10
Other account receivable
Repurchasing of financial assets
283,371,714.07 308,775,044.88
Inventories （7）
Assets held for sales
Non-current asset due in 1 year
1,428,043,157.76 513,553,675.47
Other current asset （8）
2,988,100,882.39
Total of current assets
1,859,538,138.18
Non-current assets：
Loans and payment on other’s behalf disbursed
（9） 41,565,777.96 43,241,524.06
Disposable financial asset
Expired investment in possess
Long-term receivable
（10） 24,849,311.00 22,879,269.06
Long term share equity investment
（11） 179,324,547.77 134,389,963.05
Property investment
（12） 723,685,287.56 790,019,487.16
Fixed assets
（13） 119,804,231.43 75,803,586.70
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
（14） 39,698,654.32 40,626,936.34
Intangible assets
R & D petrol
（15）
Goodwill
（16） 973,081.68 633,541.50
Long-germ expenses to be amortized
（17） 1,584,492.36 2,262,532.65
Differed income tax asset
Other non-current asset
1,131,485,384.08
Total of non-current assets 1,109,856,840.52
4,119,586,266.47
Total of assets
2,969,394,978.70
Legal Representative：Zhujun Person in charge of accounting：Zhujun Accounting Dept Leader：Mu Linying
Consolidated balance sheet(Cont’d)
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. December 31,2016 In RMB
Items Notes V
Year-end balance Year-beginning balance
Current liabilities
（18） 12,335,695.77 53,866,521.87
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with
variations accounted into current income account
Derivative financial liabilities
Bill payable
（19） 175,461,715.72 227,528,808.60
Account payable
（20） 30,297,446.49 28,199,415.11
Advance payment
Selling of repurchased financial assets
Fees and commissions receivable
（21） 27,379,719.86 35,307,822.40
Employees’ wage payable
（22） 13,995,726.19 14,682,643.09
Tax payable
（23） 42,842,605.52 39,088,887.96
Interest payable
Dividend payable
（24） 147,108,590.19 125,775,723.80
Other account payable
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
（25） 40,000,000.00 40,000,000.00
Non-current liability due in 1 year
Other current liability
489,421,499.74 564,449,822.83
Total of current liability
Non-current liabilities：
（26） 80,000,000.00 120,000,000.00
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s remuneration
Special payable
Expected liabilities
（27） 110,045,784.62 99,524,165.58
Deferred income
（17） 10,851,444.74
Deferred income tax liability
Other non-current liabilities
190,045,784.62 230,375,610.32
Total non-current liabilities
679,467,284.36 794,825,433.15
Total of liability
Owners’ equity
（28） 506,521,849.00 506,521,849.00
Share capital
Other equity instruments
Including：preferred stock
Sustainable debt
（29） 1,837,205,251.95 1,585,130,051.37
Capital reserves
Less：Shares in stock
（30） 3,392,222.07 3,212,187.35
Other comprehensive income
Special reserves
（31） 73,710,682.05 70,539,319.86
Surplus reserves
Common risk provision
（32） -81,275,828.76 9,166,137.97
Undistributed profit
2,339,554,176.31 2,174,569,545.55
Total of owner’s equity belong to the parent company
1,100,564,805.80
Minority shareholders’ equity
3,440,118,982.11 2,174,569,545.55
Total of owners’ equity
4,119,586,266.47 2,969,394,978.70
Total of liabilities and owners’ equity
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Balance sheet of Parent Company
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. December 31,2016 In RMB
Year-end balance Year-beginning
Items Notes XIII
balance
Current asset：
440,685,610.11 271,582,749.03
Monetary fund
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
1,000,000.00
Bill receivable
（1） 492,974.01 819,054.57
Account receivable
120,000.00 1,754,880.00
Prepayments
3,218,526.94 22,294,015.02
Interest receivable
7,798,378.51
Dividend receivable
（2） 12,524,256.75 72,543,709.78
Other account receivable
Inventories
Assets held for sales
Non-current asset due in 1 year
30,000,000.00 260,000,000.00
Other current asset
488,041,367.81 636,792,786.91
Total of current assets
Non-current assets：
40,065,777.96 41,741,524.06
Disposable financial asset
Expired investment in possess
Long-term receivable
（3） 1,989,073,077.61 1,779,103,035.67
Long term share equity investment
172,279,313.75 126,873,096.51
Property investment
27,403,189.39 26,579,978.92
Fixed assets
38,792,110.90
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
1,345,846.59 1,378,688.61
Intangible assets
R & D petrol
Goodwill
Long-germ expenses to be amortized
1,919,804.30 2,556,126.29
Deferred income tax asset
Other non-current asset
2,232,087,009.60 2,017,024,560.96
Total of non-current assets
Total of assets 2,720,128,377.41 2,653,817,347.87
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Balance sheet of Parent Company(Cont’d)
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. December 31,2016 In RMB
Year-end balance Year-beginning
Items Notes
balance
Current liabilities
Short-term loans
Financial liabilities measured at fair value with variations
accounted into current income account
Derivative financial liabilities
Bill payable
411,743.57 411,743.57
Account payable
639,024.58 639,024.58
Advance payment
6,533,138.24 7,299,686.80
Employees’ wage payable
4,398,387.25 12,558,340.06
Tax payable
Interest payable
Dividend payable
120,954,892.58 77,332,555.09
Other account payable
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
132,937,186.22 98,241,350.10
Total of current liability
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 278,469.57
Other non-current liabilities
278,469.57
Total of Non-current liabilities
132,937,186.22 98,519,819.67
Total of liability
Owners’ equity
506,521,849.00 506,521,849.00
Share capital
Other equity instrument
Including：preferred stock
Sustainable debt
1,576,547,075.96 1,576,547,069.58
Capital reserves
Less：Shares in stock
3,392,222.07 3,212,187.35
Other comprehensive income
Special reserves
73,710,682.05 70,539,319.86
Surplus reserves
427,019,362.11 398,477,102.41
Undistributed profit
2,587,191,191.19 2,555,297,528.20
Total of owners’ equity
2,720,128,377.41 2,653,817,347.87
Total of liabilities and owners’ equity
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Consolidated Income Statement
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. Year 2016 In RMB
Amount in this Amount in last
Items Notes V
period period
I. Income from the key business
1,198,200,216.42 1,226,746,791.
（33）
Incl：Business income 1,198,200,216.42 1,226,746,791.
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost
1,296,343,917.53 1,302,269,276.
（33）
Incl：Business cost 1,128,134,488.54 1,142,511,012.
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
（34） 10,337,248.55 7,624,971.76
Business tax and surcharge
（35） 10,161,699.85 11,743,914.73
Sales expense
（36） 106,901,733.12 103,044,704.3
Administrative expense
（37） -1,678,136.65 -24,448,318.10
Financial expenses
（38） 42,486,884.12 61,792,990.95
Asset impairment loss
Add：Gains from change of fir value （“-”for loss）
（39） 5,223,413.76 94,812,557.58
Investment gain（“-”for loss）
1,467,403.29 2,431,042.20
Incl: investment gains from affiliates
Gains from currency exchange（“-”for loss）
-92,920,287.35 19,290,072.72
III. Operational profit（“-”for loss）
（40） 15,072,447.15 24,122,339.62
Add ：Non-operational income
235,533.62
Including：Income from disposal of non-current assets
（41） 138,691.94 260,665.61
Less：Non business expenses
138,610.37 260,642.59
Incl：Loss from disposal of non-current assets
-77,986,532.14 43,151,746.73
IV.Total profit(“-”for loss)
（42） 9,284,072.40 34,654,519.33
Less：Income tax expenses
-87,270,604.54 8,497,227.40
V. Net profit
-87,270,604.54 8,497,227.40
Net profit attributable to the owners of parent company
Minority shareholders’ equity
（43） 180,034.72 -30,176,930.11
VI. Other comprehensive income
180,034.72 -30,176,930.11
Net of profit of other comprehensive income attributable to owners of the paren
t company.
（I）Other comprehensive income items that will not be reclassified into
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be rec
lassified into profit or loss. 180,034.72 -30,176,930.11
(II)Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be reclass
ified into profit or loss.
-1,256,809.58 -30,375,486.14
2.Gains and losses from changes in fair value available for sale financial assets
3.Held-to-maturity investments reclassified to gains and losses of available for
sale financial assets
4.The effective portion of cash flow hedges and losses
1,436,844.30 198,556.03
5.Translation differences in currency financial statements
6.Other
7.Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
-87,090,569.82 -21,679,702.71
VII. Total comprehensive income
-87,090,569.82 -21,679,702.71
Total comprehensive income attributable to the owner of the parent company
Total comprehensive income attributable minority shareholders
VIII. Earnings per share
-0.17 0.02
（I）Basic earnings per share
-0.17 0.02
(II)Diluted earnings per share
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Income statement of the Parent Company
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. Year 2016 In RMB
Notes Amount in Amount in last
Items
XIII
this period
63,923,286.07 period
64,473,351.83
（4）
I. Income from the key business
（4） 12,754,930.31 12,333,803.24
Incl：Business cost
3,823,490.12 5,494,540.21
Business tax and surcharge
Sales expense
28,068,523.83 28,207,859.60
Administrative expense
-12,288,105.4 -19,528,024.29
Financial expenses
-3,107,155.76 14,939,945.14
Asset impairment loss
Add：Gains from change of fir value （“-”for loss）
（5） 4,545,773.24 58,283,064.18
Investment gain（“-”for loss）
1,467,403.29 2,431,042.20
Incl: investment gains from affiliates
39,217,376.30 81,308,292.11
II. Operational profit（“-”for loss）
23,692.50 2,047,648.92
Add ：Non-operational income
235,233.62
Including：Income from disposal of non-current assets
117,153.06 13,020.92
Less：Non business expenses
117,153.06 13,020.92
Incl：Loss from disposal of non-current assets
39,123,915.74 83,342,920.11
III.Total profit(“-”for loss)
7,410,293.85 21,979,992.46
Less：Income tax expenses
31,713,621.89 61,362,927.65
IV. Net profit（“-”for net loss）
180,034.72 -30,176,930.11
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that will not be reclassified into
gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be rec
lassified into profit or loss.
(II)Other comprehensive income that will be reclassified into profit or loss. 180,034.72 -30,176,930.11
1.Other comprehensive income under the equity method investee can be reclass
ified into profit or loss.
2.Gains and losses from changes in fair value available for sale financial assets -1,256,809.58 -30,375,486.14
3.Held-to-maturity investments reclassified to gains and losses of available for
sale financial assets
4.The effective portion of cash flow hedges and losses
1,436,844.30 198,556.03
5.Translation differences in currency financial statements
6.Other
31,893,656.61 31,185,997.54
VI. Total comprehensive income
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative:：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Consolidated Cash flow statement
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. Year 2016 In RMB
Items Notes V
Amount in this Amount in last
period period
I.Cash flows from operating activities
1,151,157,518.74 1,247,874,437.38
Cash received from sales of goods or 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
Net increase of inter-bank fund received
Net increase of trade financial asset disposal
Net increase of repurchasing business
69,122,511.24 68,431,596.59
Tax returned
（44） 68,307,793.54 95,526,183.51
Other cash received from business operation
1,288,587,823.52 1,411,832,217.48
Sub-total of cash inflow
1,085,677,364.56 1,157,396,626.23
Cash paid for purchasing of merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
129,329,006.02 128,028,856.25
Cash paid to staffs or paid for staffs
47,012,479.57 36,667,118.26
Taxes paid
（44） 81,833,439.21 50,155,116.37
Other cash paid for business activities
1,343,852,289.36 1,372,247,717.11
Sub-total of cash outflow from business activities
-55,264,465.84 39,584,500.37
Cash flow generated by business operation, net
II.Cash flow generated by investing
2,366,612.87 89,640,023.95
Cash received from investment retrieving
3,633,486.12 4,871,581.37
Cash received as investment gains
Net cash retrieved from disposal of fixed assets, intangible assets, 160.00 2,950.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units （44） 845,568,256.74 30,591,780.82
Other investment-related cash received
851,568,515.73 125,106,336.14
Sub-total of cash inflow due to investment activities
114,577,108.61 17,134,529.58
Cash paid for construction of
Cash paid as investment
Net assets, of loan assets
fixedincrease intangibleagainst pledge
Net cash received from subsidiaries and other operational units
and other long-term assets
（44） 1,766,000,000.00 490,059,223.58
Other cash paid for investment activities
1,880,577,108.61 507,193,753.16
Sub-total of cash outflow due to investment activities
-1,029,008,592.88 -382,087,417.02
Net cash flow generated by investment
III.Cash flow generated by financing
1,352,640,000.00
Cash received as investment
Incl: Cash received as investment from minor shareholders 1,352,640,000.00
228,579,582.43 244,759,302.00
Cash received as loans
Cash received from bond placing
6.38
Other financing –related ash received
1,581,219,588.81 244,759,302.00
Sub-total of cash inflow from financing activities
315,726,235.45 255,569,374.85
Cash to repay debts
850,946.99 792,115.53
Cash paid as dividend, profit, or interests
Incl: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities
316,577,182.44 256,361,490.38
Sub-total of cash outflow due to financing activities
1,264,642,406.37 -11,602,188.38
Net cash flow generated by financing
IV. Influence of exchange rate alternation on cash and cash 1,086,213.32 4,531,621.61
equivalents 181,455,560.97 -349,573,483.42
V.Net increase of cash and cash equivalents
Add: balance of cash and cash equivalents at the beginning of term 748,658,875.60 1,098,232,359.02
VI ..Balance of cash and cash equivalents at the end of term 930,114,436.57 748,658,875.60
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Cash flow statement of the Parent Company
Prepared by：Shenzhen Textilen(Holdings) Co., Ltd. Year 2016 In RMB
Amount in this Amount in last
Items Notes
period period
I.Cash flows from operating activities
66,944,479.62 63,862,579.19
Cash received from sales of goods or rending of services
Tax returned
104,001,892.47 18,819,989.01
Other cash received from business operation
170,946,372.09 82,682,568.20
Sub-total of cash inflow
6,013,836.98 4,835,838.70
Cash paid for purchasing of merchandise and services
17,161,992.17 14,524,922.32
Cash paid to staffs or paid for staffs
20,714,808.63 22,477,306.54
Taxes paid
23,027,843.36 9,551,257.85
Other cash paid for business activities
66,918,481.14 51,389,325.41
Sub-total of cash outflow from business activities
104,027,890.95 31,293,242.79
Cash flow generated by business operation, net
II.Cash flow generated by investing
46,395,738.95
Cash received from investment retrieving
10,754,224.11 3,777,417.02
Cash received as investment gains
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
326,615,158.57 30,591,780.82
Other investment-related cash received
337,369,382.68 80,764,936.79
Sub-total of cash inflow due to investment activities
4,300,131.91 7,855,316.71
Cash paid for construction of
208,000,000.00
Cash paid as investment
fixed assets, intangible subsidiaries and other operational units
Net cash received from assets
60,000,000.00 290,000,000.00
Other cash paid for investment activities
272,300,131.91 297,855,316.71
and other long-term assetsdue to investment activities
65,069,250.77 -217,090,379.92
Net cash flow generated by investment
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
6.38
Other financing –related ash received
6.38
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
6.38
Net cash flow generated by financing
IV. Influence of exchange rate alternation on cash and cash 5,712.98
equivalents
169,102,861.08 -185,797,137.13
V.Net increase of cash and cash equivalents
Add: balance of cash and cash equivalents at the beginning of term 271,582,749.03 457,379,886.16
VI ..Balance of cash and cash equivalents at the end of term 440,685,610.11 271,582,749.03
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Consolidated Statement on Change in Owners’ Equity
Prepared by : Shenzhen Textile (Holdings) Co., Ltd. In RMB
Year 2016
Owner’s equity Attributable to the Parent Company
Other Equity Less Com
instrusment Other Minor Total of
Items : Special mon
Capital Comprehe Surplus Attributab shareholder owners’
Share Prefer Shar ized risk
Sustain Oth reserves nsive reserves le profit s’ equity equity
Capital red es reserve provis
able er Income
stock in ion
debt
stoc
k
I.Balance at the end of last year 506,521,8 1,585,130,0 3,212,187. 70,539,3 9,166,137 2,174,569,5
49.00 51.37 35 19.86 .97 45.55
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 506,521,8 1,585,130,0 3,212,187. 70,539,3 9,166,137 2,174,569,5
year 49.00 51.37 35 19.86 .97 45.55
III.Changed in the current year 252,075,20 180,034.7 3,171,36 -90,441,9 1,100,564,8 1,265,549,4
0.58 2 2.19 66.73 05.80 36.56
（1）Total comprehensive income 180,034.7 -87,270,6 -87,090,569
2 04.54 .82
（II）Investment or decreasing of
252,075,19 1,100,564,8 1,352,640,0
capital by owners
4.20 05.80 00.00
1．Ordinary Shares invested by hareh
olders
2．Holders of other equity instrument
s invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other 252,075,19 1,100,564,8 1,352,640,0
4.20 05.80 00.00
（III）Profit allotment 3,171,36 -3,171,36
2.19 2.19
1.Providing of surplus reserves 3,171,36 -3,171,36
2.19 2.19
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or
to capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(V). Special reserves
1. Provided this year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the end of this term 506,521,8 1,837,205,2 3,392,222. 73,710,6 -81,275,8 1,100,564,8 3,440,118,9
49.00 51.95 07 82.05 28.76 05.80 82.11
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Consolidated Statement on Change in Owners’ Equity
Prepared by : Shenzhen Textile (Holdings) Co., Ltd. In RMB
Year 2015
Owner’s equity Attributable to the Parent Company
Other Equity
instrusment
Less
Com Minor
: Other Total of
Speciali mon sharehol
Items Capital Shar Comprehe Surplus Attributa owners’
Share zed risk ders’
prefer reserves es in nsive reserves ble profit equity
Capita Sustain Oth reserve provis equity
red stoc Income
able er ion
stock k
debt
I.Balance at the end of last year 506,521,8 1,585,130,0 33,389,117 64,403,02 6,805,20 2,196,249,2
49.00 51.37 .46 7.10 3.33 48.26
Add: Change of accounting policy
Correcting of previous errors
Merger of entities under common
control
Other
II.Balance at the beginning of current 506,521,8 1,585,130,0 33,389,117 64,403,02 6,805,20 2,196,249,2
49.00 51.37 .46 7.10 3.33 48.26
year
III.Changed in the current year -30,176,93 6,136,292 2,360,93 -21,679,702
0.11 .76 4.64 .71
（1）Total comprehensive income -30,176,93 8,497,22 -21,679,702
0.11 7.40 .71
（II）Investment or decreasing of
capital by owners
1 ． Ordinary Shares invested by hareh
olders
2．Holders of other equity instruments
invested capital
3．Allotment to the owners (or
shareholders)
4．Other
(IV) Internal transferring of owners’ 6,136,292 -6,136,29
.76 2.76
equity
1. Capitalizing of capital reserves (or 6,136,292 -6,136,29
.76 2.76
to capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of this term 506,521,8 1,585,130,0 3,212,187. 70,539,31 9,166,13 2,174,569,5
49.00 51.37 35 9.86 7.97 45.55
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Statement of change in owner’s Equity of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd. In RMB
Year 2016
Owner’s equity Attributable to the Parent Company
Other Equity instrusment
Less: Total of
Items preferr Oth Other Specializ
Share Capital Shar Surplus Attributable owners’
Comprehens ed
cpaital ed Sustaina er reserves es in reserves profit equity
ive Income reserve
stock
stock ble debt
I.Balance at the end of last year 506,521,849 1,576,547,06 3,212,187.3 70,539,319 398,477,102 2,555,297,52
.00 9.58 5 .86 .41 8.20
Add: Change of accounting policy
Correcting of previous errors
Other
506,521,849 1,576,547,06 3,212,187.3 70,539,319 398,477,102 2,555,297,52
II.Balance at the beginning of current year .00 9.58 5 .86 .41 8.20
III.Changed in the current year 6.38 180,034.72 3,171,362. 28,542,259. 31,893,662.9
19 70
（1）Total comprehensive income 180,034.72 31,713,621. 31,893,656.6
89
（II）Investment or decreasing of capital by
owners
1．Ordinary Shares invested by shareholders
2．Holders of other equity instruments inves
ted capital
3．Allotment to the owners (or shareholders)
4．Other
（III）Profit allotment 3,171,362. -3,171,362.1
19
1.Providing of surplus reserves 3,171,362. -3,171,362.1
19
2．Allotment to the owners (or shareholders)
3．Other
(IV)Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the end of this term 506,521,849 1,576,547,07 3,392,222.0 73,710,682 427,019,362 2,587,191,19
.00 5.96 7 .05 .11 1.19
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linying
Statement of change in owner’s Equity of the Parent Company
Prepared by : Shenzhen Textile (Holdings) Co., Ltd. In RMB
Year 2015
Owner’s equity Attributable to the Parent Company
Other Equity instrusment
Less: Total of
Items Other Specializ
Share preferr Oth Capital Shar Surplus Attributable owners’
Comprehens ed
Capital ed Sustaina er reserves es in reserves profit equity
ive Income reserve
stock
stock ble debt
506,521,849 1,576,547,06 33,389,117. - 64,403,027 343,250,467 2,524,111,530
I.Balance at the end of last year
.00 9.58 46 .10 .52 .66
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current year 506,521,849 1,576,547,06 33,389,117. - 64,403,027 343,250,467 2,524,111,530
.00 9.58 46 .10 .52 .66
III.Changed in the current year -30,176,930. - 6,136,292. 55,226,634. 31,185,997.5
11 76 89
（1）Total comprehensive income -30,176,930. 61,362,927. 31,185,997.5
11 65
（II）Investment or decreasing of capital by
owners
1．Ordinary Shares invested by Shareholders
2．Holders of other equity instruments inves
ted capital
3．Allotment to the owners (or shareholders)
4．Other
（III）Profit allotment 6,136,292. -6,136,292.7
76
1.Providing of surplus reserves 6,136,292. -6,136,292.7
76
2．Allotment to the owners (or shareholders)
3．Other
(IV)Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3．Making up losses by surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
506,521,849 1,576,547,06 3,212,187.3 70,539,319 398,477,102 2,555,297,52
IV. Balance at the end of this term
.00 9.58 5 .86 .41 8.20
Legal Representative：Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader：Mu Linyin
Shenzhen Textile (Holdings) Co., Ltd.
Notes to financial statements
Year 2016
(Currency unit for the statements in the notes to these financial statements: RMB)
I. Basic Information of the Company
( 1 ) C o mp a n y P r o fi l e
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the
Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and named as
Shenzhen Textile (Holdings) Co., Ltd. In the same year, approved by the (1994) No.19 file of Shenzhenshi, the shares
of the company were listed in Shenzhen Stock Exchange. The company now holds a unified social credit code for the
91440300192173749Y business license, Registration address and headquarter address are 6/F,Shenfang Building,
No.3 Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and marketing of
polarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen and reserved
high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on March 29,2017.
(2)Scope of consolidated financial statements
1.As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated financial state
ments:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi Industrial Development Co.,
Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. Shenzhen Beaufity Garments Co.,
Ltd. ,Shzhen Shenfang Import & Export Co., Ltd., and Shengtou (Hongkong) Co., Ltd.
2．The scope of consolidated financial statements this period did not change.
II. Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual transactions, in accordance
with the relevant provisions of Accounting Standards for Business Enterprises and in accordance with this Note III,
\"Significant accounting policies and accounting estimates\".
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(2)Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.
III. Important accounting policies and estimations
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate accounting standards.
They truly and completely reflect the financial situations, operating results, equity changes and cash flow, and other
relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the fiscal
year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of assets for
processing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities repaid at maturity
within one year as of the balance sheet date shall be classified into the current assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the combination date,
obtains control of another enterprise participating in the combination is the absorbing party, while that other enterprise
participating in the combination is a party being absorbed. Combination date is the date on which the absorbing party
effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined
at the combination date. The difference between the carrying amount of the net assets obtained and the carrying
amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to the capital
premium in the capital reserve. If the balance of the capital premium is insufficient, any excess is adjusted to retained
earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the combination
shall be recognized as an expense through profit or loss for the current period when incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if the relevant profit
and loss, other comprehensive income and other owner equity are confirmed between the ultimate control date and the
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
combining date for the combining party and the combined party on the acquirement date, and shall respectively offset
the initial retained incomes or the profits and losses of the current period during the comparative statement.
(2)Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the business
combination.For a business combination not involving enterprises under common control, the party that, on the
acquisition date, obtains control of another enterprise participating in the combination is the acquirer, while that other
enterprise participating in the combination is the acquiree. Acquisition date is the date on which the acquirer
effectively obtains control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquiree during
the merger on the acquisition date, is recognized as the business reputation. While the merger cost is less than the fair
value shares of identifiable net assets obtained by the acquiree during the merger, all the measurement on the
identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained by the acquiree should firstly
be rechecked, and the difference shall be recorded into the current profits and costs if the merger cost is still less than
the fair value shares of identifiable net assets obtained by the acquiree during the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with the conditions
applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional information can
prove the existence of related information at acquisition date and the expected economic benefits on the acquisition
date arose from deductible temporary difference by the acquiree can be achieved, relevant income tax assets can be
recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in stages that involves
multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of Accounting
Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article51 of “Accounting Standards for Business
Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion, to judge the multiple
exchange transactions whether they are the\"package deal\". If it belong to the “package deal” in reference to the
preceding paragraphs of this section and “long-term investment” accounting treatment, if it does not belong to the
“package deal” to distinguish the individual financial statements and the consolidated financial statements related to
the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investment before the
acquisition date and the cost of new investment at the acquisition date, as the initial cost of the investment, the
acquiree's equity investment before the acquisition date involved in other comprehensive income, in the disposal of the
investment will be in other comprehensive income associated with the use of infrastructure and the acquiree directly
related to the disposal of assets or liabilities of the same accounting treatment (that is, except in accordance with the
equity method of accounting in the defined benefit plan acquiree is remeasured net changes in net assets or liabilities
other than in the corresponding share of the lead, and the rest into the current investment income).
In the combination financial statements, the equity interest in the acquiree previously held before the acquisition date
re-assessed at the fair value at the acquisition date, with any difference between its fair value and its carrying amount
is recorded as investment income. The previously-held equity interest in the acquiree involved in other comprehensive
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
income and other comprehensive income associated with the purchase of the foundation should be used party directly
related to the disposal of assets or liabilities of the same accounting treatment (that is, except in accordance with the
equity method of accounting in the acquiree is remeasured defined benefit plans other than changes in net liabilities or
net assets due to a corresponding share of the rest of the acquisition date into current investment income).
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control. Control is
the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating
activities. The relevant events refer to the activities that have significant influence on the return to the invested party.
In accordance with the specific conditions, the relevant events of the invested party should conclude the sale and
purchase of goods and services, the management of the financial assets, the purchase and disposal of the assets, the
research and development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an enterprise or entity
under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements involved in
the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevant
information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and cash
flows from the acquisition (the date when the control is obtained) are included in the consolidated income statement
and consolidated statement of cash flows, as appropriated; no adjustment is made to the opening balance and
comparative figures in the consolidated financial statements. Where a subsidiary and a party being absorbed in a
merger by absorption was acquired during the reporting period, through a business combination involving enterprises
under common control, the financial statements of the subsidiary are included in the consolidated financial
statements. The results of operations and cash flow are included in the consolidated balance sheet and the consolidated
income statement, respectively, based on their carrying amounts, from the date that common control was established,
and the opening balances and the comparative figures of the consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the
Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’s own
accounting period or accounting policies. Where a subsidiary was acquired during the reporting period through a
business combination not under common control, the financial statements was reconciliated on the basis of the fair
value of identifiable net assets at the date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, are
eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are presented separately in
the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or loss attributable to
minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated income
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, the excess is allocated
against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or other
reasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. The difference
between 1) the total amount of consideration received from the transaction that resulted in the loss of control and the
fair value of the remaining equity investment and 2) the carrying amounts of the interest in the former subsidiary’s net
assets immediately before the loss of the control is recognized as investment income for the current period when
control is lost. Other comprehensive income related to the former subsidiary's equity investment, using the foundation
and the acquiree directly related to the disposal of the same assets or liabilities are accounted when the control is
lost(ie, in addition to the former subsidiary is remeasured at the net defined benefit plan or changes in net assets and
liabilities resulting from, the rest are transferred to the current investment income). The retained interest is
subsequently measured according to the rules stipulated in the - “Chinese Accounting Standards for Business
Enterprises No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises No.22 -
Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity investment until the loss
of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over whether the
transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject to the
following conditions and the economic impact of one or more of cases, usually indicates that several transactions
should be accounted for as a package deal:①these transactions are considered。simultaneously, or in the case of
mutual influence made, ②these transactions as a whole in order to achieve a complete business results; ③the
occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look alone is not
economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in accordance with
“without losing control over the disposal of a subsidiary part of a long-term equity investments“principles applicable
accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the transactions
belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss of control of the
transaction. However, before losing control of the price of each disposal entitled to share in the net assets of the
subsidiary 's investment corresponding to the difference between the disposal, recognized in the consolidated financial
statements as other comprehensive income, loss of control over the transferred together with the loss of control or loss
in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more parties have joint control，depending of the rights and
obligation of the Company in the joint arrangement. A joint operation is a joint arrangement whereby the Company
has rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint
arrangement whereby the Company has rights to the net assets of the arrangement.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business interest
s related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments .
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having short
holding term (normally will be due within three months from the day of purchase), with strong liquidity and easy to be
exchanged into certain amount of cash that can be measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB amount when the
foreign currency transaction is initially recognized. On the balance sheet date, the monetary items of foreign currency
are translated as per the shot exchange rate on the balance sheet date, the foreign exchange conversion gap due to the
exchange rate, except for the balance of exchange conversion arising from special foreign currency borrowings
capitals and interests for the purchase and construction of qualified capitalization assets, shall be recorded into the
profits and losses of the current period. The non-monetary items of foreign currency measured at the historical cost
shall still be translated at the spot exchange rate on the transaction date, of which the RMB amount shall not be
changed. The non-monetary items of foreign currency measured at the fair value shall be translated at the spot
exchange rate on the fair value recognized date, the gap shall be recorded into the current profits and losses or other
comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is adopted as the
translation exchange rate. For the owner’s equity, the shot exchange rate on the transaction date is adopted as the
translation exchange rate, with the exception of “undistributed profits”. The incomes and expenses in the income
statement shall be translated at the spot exchange rate or the approximate exchange rate on the transaction date. The
translation gap of financial statement of foreign currency converted above shall be listed in other comprehensive
incomes under the owner’s equity in the consolidated balance sheet.
10.Financial tools
One financial asset or financial liability shall be recognized when the company becomes the party in the financial
instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the
current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses. For
the financial assets and liabilities of other categories, the expenses related to transactions are recognized as initial
amount.
1 Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction. For a financial instrument which has an active market, the Company
uses quoted price in the active market to establish its fair value. The quoted price in the active market refers to the
price that can be regularly obtained from exchange market, agencies, industry associations, pricing authorities; it
represents the fair market trading price in the actual transaction. For a financial instrument which does not have an
active market, the Company establishes fair value by using a valuation technique. Valuation techniques include using
recent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair value of
another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On initial
recognition, the Company’s financial assets are classified into including financial assets at fair value though profit or
loss, held-to maturity investments, loans and receivables and available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or loss. Financial
asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed, and
there is objective evidence indicating that the enterprise recently manages this portfolio for the purpose of short-term
profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging instrument, or a
financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price from an active market) whose fair value cannot be reliably measured. For such kind
of financial assets, fair values are adopted for subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meets one of the
following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or recognition of relevant
gains or losses that would otherwise arise from measuring the financial instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis, and is reported
to the enterprise’s key management personnels. Formal documentation regarding risk management or investment
strategy has prepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any gains or losses
arising from changes in the fair value and any dividends or interest income earned on the financial assets are
recognized in the profit or loss.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are
subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition, impairment or amortization are recognized in profit or loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the expected life of the
financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial
asset or financial liability. When calculating the effective interest rate, the Company shall estimate future cash flow
considering all contractual terms of the financial asset or financial liability without considering future credit losses,
and also consider all fees paid or received between the parties to the contract giving rise to the financial asset and
financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts,
etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not quoted in an
active market. Financial assets classified as loans and receivables by the Company include note receivables, account
receivables, interest receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss
arising from derecognition, impairment or amortization is recognized in profit or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on initial recognition as
available for trade, and financial assets that are not classified as financial assets at fair value through profit or loss,
loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes
in the fair value are recognized as other comprehensive income and included in the capital reserve, except that
impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in
foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains
or losses are released and recognized in profit or loss. Interests obtained and dividends declared by the investee during
the period in which the financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for the financial
assets that measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, a
provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant single amounts, and
carry out an independent impairment test on the financial assets with insignificant single amounts, or conduct an
impairment-related test after they are included in a combination of financial assets with similar credit risk features so
as to carry out. Where, upon independent test, the financial asset (including those financial assets with significant
single amounts and those with insignificant amounts) has not been impaired, it shall be included in a combination of
financial assets with similar risk features so as to conduct another impairment test. The financial assets which have
suffered from an impairment loss in any single amount shall not be included in any combination of financial assets
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present
value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the
recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss,
the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss
reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the
reserving date.
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily according to the
integrated relevant factors, an available-for-trade financial asset is impaired. The \"serious decline\" refers to the
cumulative fair value declines more than 30%; \"non-temporary decline\" refers to the continuous decline in the fair
value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value that
had been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative
loss that is removed shall be difference between the acquisition cost with deduction of recoverable amount less
amortized cost, current fair value and any impairment loss on that financial asset previously recognized in profit or
loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is
recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial
impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is recorded
in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in the current
profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably
measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an
unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through
arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has transferred substantially
all the risks and rewards of the asset, or has neither transferred norretained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the
asset is recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The
extent of existence refers the level of risk by the financial asset changes the enterprise is facing.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying amount of the
financial asset transferred; and the sum of the consideration received from the transfer and any cumulative gain or loss
that had been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part
that is derecognized, based on the relative fair value of those parts. The difference between (a) the
carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for
the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost all of the risks
and rewards of ownership of the financial assets have been transferred if. Has transferred the ownership of the
financial assets of almost all the risks and rewards to the transferee, the derecognition of the financial asset; retains
ownership of the financial assets of almost all of the risks and rewards of financial assets that are not derecognised;
neither transfers nor retains ownership of the financial assets of almost all of the risks and rewards, then continue to
determine whether the enterprise retains control of the assets and the accounting treatment in accordance with the
principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through
profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant
transaction costs are immediately recognized in profit or loss for the current period, and transaction costs relating to
other financial liabilities are included in the initial recognition amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial recognition
to be measured by the fair value follows the same criteria as the classification by which financial assets held-for-trade
and financial assets designed at the initial recognition to be measured by the fair value and their changes are recorded
in the current profit or loss.For the financial liabilities measured by the fair value and changes recorded in the profit or
loss, fair values are adopted for subsequent measurement. All the gains or losses on the change of fair value and the
expenses on dividends or interests related to these financial liabilities are recognized in profit or loss for the current
period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active
market and their fair value cannot be measured reliably, is subsequently measured by cost Other financial liabilities are
subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition or amortization is recognized in profit or loss for the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is
discharged or cancelled or has expired. An agreement between the Company (an existing borrower) and existing
lender to replace original financial liability with a new financial liability with substantially different terms is accounted
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
for as an extinguishment of the original financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the carrying
amount of the financial liability (or part of the financial liability) derecognized the consideration paid (including any
non-cash assets transferred or new financial liabilities assumed) in profit or loss.
7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial
liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the
balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented
separately in the balance sheet and shall not be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all
of its liabilities. The consideration received from issuing equity instruments, net of transaction costs, are added to
shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to holders of equity
instruments are deducted from shareholders’ equity. The Group does not recognize any changes in the fair value of
equity instruments.
11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt preparation.
The Client Identifies single amount of accounts receivable that
is not less than RMB 1 million as account receivable that are
Judgment criteria or amount standard of material specific individually significant in amount. The Client Identifies single
amount or amount criterial： amount of accounts receivable that is not less than RMB 0.5
million as account receivable that are individually significant in
amount.
Making an independent impairment test. If any objective
evidence shows that it has been impaired, the
impairment-related losses shall be recognized according to the
gap between its present value of future cash flow less than its
Provision method with material specific amount and
book value, and the several shall be determined to withdraw the
provision of specific bad debt preparation：
bad debt provision. If there exists no the impairment after the
impairment test, they shall be included in a combination of the
receivables with similar risk features so as to withdraw the bad
debt provision.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
2.The accounts receivable of bad debt provisions made by credit risk Group
(1) Recognition Criteria for the Group and Withdrawing Method of Bad Debt Provision
Name Recognition Criteria Withdrawing Method
Aging Group Division by Aging Aging Analysis Method
(2)Accounts on age basis in the portfolio：
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5
1－2 years 10
2－3 years 30
Over 3 years 50
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt
There is any objective evidence shows that it has been impaired.
Provision
The impairment-related losses shall be recognized according to the gap
Withdrawing Method of Bad Debt Provision
between its present value of future cash flow less than its book value.
12.Inventory
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of
production or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus
the net realizable value at the balance sheet date. The net realizable value refers to the amounts that
the estimated sale price of inventory minus the estimated costs ready to happen till the completion of
works, the estimated selling expenses and the relevant expenses of taxation. The company shall
recognize the net realizable value of inventory based on the acquired unambiguous evidence and in
view of the purpose to hold the inventory, the influence of matters after the balance sheet date and
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of
the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses
of taxation during the process of normal production and operation. The net realizable value of
inventory that required to conduct processing shall be recognized according to the amounts of the
estimated sale price of the finished products minus the estimated costs ready to happen till the
completion of works, the estimated selling expenses and the relevant expenses of taxation. On the
balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the
contract price and others without the contract price in the same inventory, and the amounts of the
inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison
with their corresponding costs.
4. Inventory System: Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1.The asset is immediately sellable at its current condition per usual sales term applicable to the type of assets to which
it belongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevokable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities, are classified as
current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classified as held for sale, i
n the operation and the preparation of the financial statements to be able to differentiate the components alone in the c
ompany within:
1. This part of main business represents an independent or a main business area;
2. This part of the proposed disposal plans for a major business independent or a main business area;
3 . This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the
fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair
value, which doesn’t exceed the original book value of the fixed assets when the condition of holding
for sale is met. The impairment losses of the assets shall be regarded and recorded into the current
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
profits and losses if the original book value is more than the balance of the estimated net residual
value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed
assets held for sale, the company shall terminate the classification of held-for-sale and measure based
on the less one between the following amounts: (1) the amounts after adjusted for the assets or the
disposal group classified as the book value before the held-for-sale according to the originally
confirmed depreciation, amortization or impairment when supposed that have not classified as the
held-for-sale. (2) the returned amounts that can’t be re-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above
principles.
14.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has control, joint control
or significant influence over the long-term equity investments. The Company invested does not have control, joint
control or significant influence over the long-term equity investments as financial assets available for sale or at fair
value and the changes included financial assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations are common,
related activities and the arrangement must be after sharing control participants agreed to the decision-making.
Significant influence is the Company s financial and operating policies of the entity has the right to participate in
decision-making, but can not control or with other parties joint control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common control is measured
at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimate controller's
consolidated financial statements. The difference between the cost and book value of cash paid, non-monetary assets
transferred and liabilities assumed is adjusted to capital reserves, and to retained earnings if capital reserves is
insufficient. If the consideration is transferred by way of issuing equity instruments, the face value of the equity
instruments issued is recognised in share capital and the difference between the cost of the face value of the equity
instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. The cost of
a long-term equity investment acquired through business combination not under common control is the fair value of
the assets transferred, liabilities incurred or assumed and equity instruments issued. (For the equity of the combined
party under common control obtained step-by-step through multiple transactions and the business combination under
common control ultimately formed, the company should respectively dispose all the transactions if belong to the
package deal. For the package deal, all the transactions will be conducted the accounting treatment as the deal with
acquisition of control. For the non-package deal, the shares of the book value of the stockholders’ equity/owners’
equity of the combined party in the consolidated financial statements of the ultimate control party shall be as the initial
investment cost of the long-term equity investment, and the capital reserves shall be adjusted for the difference
between the initial investment cost of long-term equity investment and the sum of the book value of long-term equity
investment before merging and that of new consideration payment obtained on the merger date, or the retained
earnings shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held before the
merger date, the accounting treatment will not be conducted temporarily for other comprehensive income accounted
by equity method or confirmed for the financial assets available for sale.)
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal
services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period
during which the acquisition occurs. For the merger of enterprises not under the same control through gaining the
shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways depending
on that if it belongs to \"a package deal\": if it belongs to \"a package deal\", it shall deal with all the deals as one
obtaining the control power; if it does not belong to \"a package deal\", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased investment cost as the
initial cost of the long-term equity investment. For the shares originally held by this enterprise accounted for by
weighted equity method, the relevant other comprehensive income shall not be accounted for temporarily. If the equity
investment held originally can be classified as the financial assets for sale, the difference between the fair value and
the book value, and the variation in the accumulative fair value of other comprehensive returns recorded originally will
be transferred into the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal
services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the period
during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on initial recognition.
Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value of equity
instrument issued, the contract price, the fair value or book value of the assets given away in the case of non-monetary
asset exchange, or the fair value of the relevant long-term equity investments. The cost of acquisition of a long-term
equity investment acquired not through business combination also includes all directly associated expenses, applicable
taxes and fees, and other necessary expenses. When the significant impact or the joint control but non-control on the
invested party can be implemented due to the additional investment, the long-term equity investment cost is the sum of
the fair value of the equity investment originally held and the new investment costs based on the recognition of
“Accounting Standards for Enterprises No.22 – Recognition and Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant
influence are accounted for using the equity method. In addition, the Company's financial statements using the cost
method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends
or profits declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the
long-term equity investment, investment income is recognized in the period in accordance with the attributable share
of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's net ide
ntifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-term equity in
vestment; the initial investment cost is less than the investee unit share of identifiable net assets at fair value, the differ
ence is recognized in profit or loss, while the long-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in the fair
values of the investee’s identifiable net assets at the time of acquisition, no adjustment shall be made to the initial
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
investment cost. The carrying amount of an long-term equity investment measured using the equity method is adjusted
by the Company's share of the investee's net profit and other comprehensive income, which is recognised as
investment income and other comprehensive income respectively. The carrying amount of an long-term equity
investment measured using the equity method is reduced by profit distribution or cash dividends announced by the
investee. The carrying amount of an long-term equity investment measured using the equity method is also adjusted by
the investee's equity movement other than net profit, other comprehensive income and profit distribution, which is
adjusted to capital reserves。The net profit of the investee is adjusted by the fair value of the investee's identifiable
assets as at acquistion. The financial statements and hence the net profit and other comprehensive income of an
investee which does not adopt accounting policies or accounting period uniform with the Company is adjusted by the
Company's accounting policies and accounting period. The Company's share of unrealised profit or loss arising from
related party transactions between the Company and an associate or joint venture is deducted from investment income.
Unrealised loss arising from related party transactions between the Company and an associate or joint venture which is
associated with asset impairment is not adjusted. Where assets transferred to an associate or joint venture which form
part of the Company's investment in the investee but which does not enable the Company obtain control over the
investee, the cost of the additional investment acquired is measured at the fair value of assets transferred and the
difference between the cost of the additional investment and the book value of the assets transferred is recognised in
profit or loss. Where assets transferred to an associate or joint venture form an operation, the difference between the
consideration received and the book value of the assets transferred in recognised in profit or loss. Where assets
transferred from an associate or joint venture form an operation, the transaction is accounted for in accordance with
CAS 20 - Business Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the long-term equity
investment and other net long-term investments in the investees. Where the Company has obligation to share
additional net loss of the investee, the estimatedshare of loss recognised as accrued liabilities and investment loss.
Where the Company has unrecognised share of loss of the investee when the investee generates net profit, the
Company's unrecognised share of loss is reduced by the Company's share of net profit and when the Company's
unrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is recognised as investment
income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of net
asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is not
sufficient to absorb the difference, the excess are adjusted against returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the difference in
the net asset between the amount of disposed long-term investment and the amount of the consideration paid or
received is adjusted to the owner’s equity. If the disposal of long-term investment in a subsidiary involves loss of
control over the subsidiary, the related accounting policies in Note applies. For disposal of long-term equity
investments in any situation other than the fore-mentioned situation, the difference between the book value of the
investment disposed and the consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit distribution is
reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part disposal of the
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
investment, cumulative other comprehensive income relevant to the investment recognised prior to the acquistion is
treated in the same manner that the investee disposes the relevant assets or liabilities proportionate to the disposal. The
investee's equity movement other than net profit, other comprehensive income and profit distribution is reocgnised in
profit or loss proportionate to the disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the investment,
cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity
method or recognition and measurement principles applicable to financial instruments, prior to the Company's
acquisition of control over the investee is treated in the same manner that the investee disposes the relevant assets or
liabilities and recognised in profit or loss proportionate to the disposal. The investee's equity movement other than net
profit, other comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in
profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the investee and the
Company continues to have significant influence over the investee after the partial disposal, the investment in
measured by the equity method in the Company's separate financial statements; where the Company's control over an
investee is lost due to partial disposal of investment in the investee and the Company ceases to have significant
influence over the investee after the partial disposal, the investment in measured in accordance with the recognition
and measurement principles applicable to financial instruments in the Company's separate financial statements and the
difference between the fair value and the book value of the remaining investment at the date of loss of control is
recognised in profit or loss. Cumulative other comprehensive income relevant to the investment recognised, as a result
of accounting by equity method or recognition and measurement principles applicable to financial instruments, prior to
the Company's acquisition of control over the investee is treated in the same manner that the investee disposes the
relevant assets or liabilities on the date of loss of control. The investee's equity movement other than net profit, other
comprehensive income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
loss when control is lost. Where the remaining investment is measured by equity method, the fore-mentioned other
comprehensive income and other equity movement are recognised in profit or loss proportionate to the disposal;
Where the remaining investment is measured in accordance with the recognition and measurement principles
applicable to financial instruments, the fore-mentioned other comprehensive income and other equity movement are
recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial disposal of
investment in the investee,the remaining investment in the investee is measured in accordance with the recognition and
measurement principles applicable to financial instruments, the difference between the fair value and the book value of
the remaining investment at the date of loss of joint control or significant influence is recognised in profit or loss.
Cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equity
method, prior to the partial disposal is treated in the same manner that the investee disposes the relevant assets or
liabilities on the date of loss of joint control or significant influence. The investee's equity movement other than net
profit, other comprehensive income and profit distribution is reocgnised in profit or loss when joint control or
significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple disposals shall be
viewed as one single transaction, the multiple disposals is accounted for one single transaction which result in the
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Company's loss of control over the investee. Each difference between the consideration received and the book value of
the investment disposed is recognised in other comprehensive income and reclassified in full to profit or loss at the
time when control over the investee is lost.
15.Investment property
1．The measurement mode of investment property
The investment property of the company includes the leased land use rights, the leased buildings, the land use rights
held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation by the service life
average method, and the depreciation policy is the same with that of the fixed assets. The land use rights held and
prepared to transfer after appreciation in the investment property shall be amortized by the line method, and the
specific accounting policy is same with that of the intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering labor service,
renting or business management and their useful life is in excess of one fiscal year. The fixed assets can be recognized
when the following requirements are all met: (1) the economic benefits relevant to the fixed assets will flow into the
enterprise. (2) the cost of the fixed assets can be measured reliably.
The fixed assets of the company include the houses and buildings, the decoration of the fixed assets, the machinery
equipment, the transportation equipment, the electronic instrument and other devices.
2. Initial Measurement and Subsequent Measurement of the Fixed Assets
The fixed assets shall be book kept as per the acquired actual cost, and the depreciation shall be withdrawn from the
subsequent month after the usable status reserved and achieved.
3．The method for depreciation
The method for Expected useful Estimated residual
Category Depreciation
depreciation life（Year） value
House and Building- Straight-line
35 years 4% 2.74%
Production method
House and Building-Non- Straight-line
method 40 years 4% 2.40%
Production
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
The method for Expected useful Estimated residual
Category Depreciation
depreciation life（Year） value
Straight-line
Decoration of Fixed assets 10 years 10.00%
method
Straight-line
Machinery and equipment 10-14 years 4% 9.60%-6.86%
method
Straight-line
Transportation equipment 8 years 4% 12.00%
method
Straight-line
Electronic equipment 8 years 4% 12.00%
method
Straight-line
Other equipment 8 years 4% 12.00%
method
4．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met: ① the ownership of the leasing
assets shall be transferred to the tenant when the expiration of lease term. ② the tenant has the option to purchase the
leasing assets, and the made purchase price is expected to be far less than the fair value of the leasing assets in the
implementation of the option. Thus, it can be reasonably recognized that the tenant will implement the option on the
lease date. ③ the ownership of assets is not transferred, but the lease term shall be the most of the life of the lease
assets. ④ the least present value of the lease payment of the tenant and the least present value of the lease receipts on
the lease date almost equal to the fair value of the leasing assets on the lease date respectively. ⑤ the leasing assets
have the special nature, and only the tenant can use if there is no major modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shall be
book kept according to the lower between the fair value of the leasing assets and the least lease payment on the lease
date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be withdrawn for the
fixed assets acquired under finance leases as per the depreciation policy of own fixed assets.
17.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measured
according to the actual cost occurred before the assets are built to achieve the expected usable
condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual
project costs when the expected usable condition achieved. For the expected usable condition
achieved while the final accounts for completed projects not handled yet, the projects shall be
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
transferred into the fixed assets as per the estimated value. After the final accounts for completed
projects handled, the original estimated value shall be adjusted as per the actual cost, but the original
withdrawn depreciation shall not be adjusted again.
18.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing
expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or
production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its
intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred
during these periods recognized as an expense for the current period until the acquisition, construction or production is
resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
special borrowings actually occurred during the current period (including the amortization of discount
or premium recognized as per the effective interest method) minus the interest income acquired after
the borrowings deposit in bank or the investment income obtained from the temporary investment.
For the general borrowings for the purchase and construction of qualified assets, the capitalized
interest amount of the general borrowings shall be computed and recognized according to the
weighted average of accumulative asset expense beyond the expense of the special borrowings,
multiplying the capitalization rate of general borrowings.
19.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software,
which are conducted the initial measurement as per the cost.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(2) The service life of intangible assets is analyzed and judged when of the company acquires the intangible assets. For
the finite service life of the intangible assets, the years of service life or the quantity of service life formed and the
number of similar measurement unit shall be estimated. If the term of economic benefits of the intangible assets
brought for the company is not able to be foreseen, the intangible assets shall be recognized as that with the indefinite
service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the following factors to
estimate the service life: ① the normal service life of products produced with the assets, and the acquired information
of the service life of similar assets. ② the estimation of the current stage conditions and the future development trends
in the aspects of technology and craft. ③ the demand of the products produced by the assets or the offered services in
the market. ④ the expectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the relevant expense
expected. ⑥ the relevant law provision or the similar limit to the control term of the assets, such as the licensed use
term and the lease term. ⑦ the correlation with the service life of other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and Review Procedure
of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the company, or the
indefinite term of intangible assets recognized as the indefinite service life of intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights, but the indefinite
service life of contract provision or legal provisions. ② unable to judge the term of economic benefits brought by the
intangible assets for the company after the integration of information in the same industry or the relevant expert
argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with the indefinite
service life, and the relevant department that uses the intangible assets, shall conduct the basic review by the method
from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is the change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangible
assets during the service life, and the line method shall be adopted to amortize for the intangible
assets unable to reliably recognize the expected implementation mode. The specific service life is as
follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance
sheet date, the corresponding impairment provision shall be withdrawn according to the difference
between the book value and the recoverable amount. The intangible assets with the indefinite service
life and without the usable condition shall be conducted the impairment test every year whether the
impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded into the current
profits and losses when occurring. The expenditure for internal research and development project in the development
stage shall be recognized as the intangible assets when the following requirements are simultaneously met: (1) the
completion of the intangible assets is available for use or sale, and feasible in the technology. (2) the intention to
complete the intangible assets and use or sale. (3) the method for the economic benefits produced by the intangible
assets, including the evidence that shows there exists the market for the products generated from the intangible assets
or the intangible assets have the market. The intangible assets are used internally which shows the serviceability. (4)
there are sufficient technology, financial resources and other resources to support the completion of the development
of the intangible assets, and there is ability to use or sell the intangible assets. (5) the expenditure belong to the
development stage of the intangible assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the research stage and the
development stage of the company is as follows: (1) the investigation stage planned to obtain the new technology and
knowledge, shall be recognized as the research stage, which has the features of planning and exploration. (2) before
the commercial manufacture and use, the research results or other knowledge should be applied for the plan or design,
in order to produce the new or improved stages with substantial materials, devices and products, which should be
recognized as the development stage, and this stage has the features of pertinence and more possibility to create the
achievement.
20.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment, the investment
property measured by the cost mode, the fixed assets and the projects under construction if there is possible
impairment on the balance sheet date. If there exists the evidence shows that the long-term assets have the impairment,
the impairment test should be conducted, and the recoverable amount should be estimated. The impairment shall be
confirmed if there exists after the comparison of the estimated recoverable amount of the assets and its book value, and
if the assets impairment provision shall be withdrawn to recognize the corresponding impairment losses. The
estimation of the recoverable amount of assets should be confirmed according to the higher one between the net
amount of the fair value minus the disposal costs and the present value of the cash flow of assets expected in the
future.
The company shall conduct the impairment test at least every year for the goodwill established by the business
combination and the intangible assets with the indefinite service life whether there exists the impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future accounting period.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
21.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and subsequent
period (together of more than one year).
The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be averagely
amortize within the benefit period or the specified period. If the long-term unamortized expense can’t make the
benefits for the future accounting period, the amortized value of the unamortized project shall all be transferred into
the current profits and losses.
22.Remuneration
The employee benefits of the company include short-term employee benefits, post-employment benefits, termination
benefits and other long-term employee benefits.
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual short-term
compensation as the liability and record into the current profits and losses or the relevant assets cost as per the
beneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan according to
the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balance sheet
date during the accounting period, shall be recognized as the liability, and recorded into the current profits and losses
or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution
plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and
mutually consistent actuarial assumptions to make evaluation of demographic variables and financial
variables, measure and define the obligations arising from the benefit plan, and determine the period
of the relevant obligations. The company shall discount all the defined benefit plan obligations,
including the obligation within twelve months after the end of the annual report during the expected
services provision of employee. The discount rate adopted in discounting shall be recognized
according to the bonds matched with the defined benefit plan obligation term and the currency at the
balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present
value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are
recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of
the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of
assets refers to the present value of economic benefits obtained from the refund of the defined benefit
plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are
recognized as the service costs, the net interests on the net liabilities or the net assets of the defined
benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan
that re-measured. Of which, the service costs and the net interests on the net liabilities or the net
assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant
assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured shall be recorded into other comprehensive incomes, which should not be switched back
to the profits and losses during the subsequent accounting period, but the amount recognized from
other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the
early date and recorded into the current profits and losses: (1) when the company can’t withdraw the
demission welfare provided due to the rundown suggestion or the termination of labor relations plans.
(2) when the company recognizes the costs or the expenses related to the reorganization of demission
welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the termination of labor
relations plans at its side and when the costs relevant to the recombination of dismission welfare payment, shall be
recognized as the liabilities arising from the compensation due to the termination of labor relations with staff and shall
be recorded into the current profits and losses. Then company shall reasonably predict and recognize the payroll
payable arising from the dismission welfare. The dismission welfare, which is expected to finish the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation. The dismission welfare, which is expected to be unfinished for the payment within twelve months after
the end of the annual report recognized, shall apply to the relevant provisions of short-term compensation, shall apply
to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of the defined
contribution plan, the accounting treatment shall be made in accordance with the defined contribution plan. Except for
these, other long-term benefits shall be made the accounting treatment according to the defined benefit plan, but the
changes arising from the re-measurement of net liabilities or net assets of other long-term employee benefits shall be
recorded into the current profits and losses or the relevant assets costs.
23. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product quality assurance,
staff reduction plan, loss contract, recombination obligation, disposal obligation of the fixed assets and other pertinent
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the expenditure
required to settle the present obligation. There is the continuous scope for the required expenditure, and the best
estimate with the same possibilities resulted from various outcomes within the scope shall be recognized as per the
intermediate value. The best estimate should be recognize according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters involved in the single
item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are matters involved in the
multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are compensated by
the third party or other parties, the compensation amount should be separately recognized as the assets when the
receipt of the compensation amount is basically determined. Meanwhile, the determined compensation amount shall
not exceed the book value of the estimated liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If there is
conclusive evidence that the book value cannot really reflect the current best estimate, the adjustment shall be made
for the book value in accordance with the current best estimate.
24. Revenue
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met
simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the
continual management rights related to ownership no longer retained by the company and the
effective control of the sold goods no longer implemented, the reliable measurement of the revenue
amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the
relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the
reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits,
the reliable recognition of the completion schedule of transaction, and the reliable measurement of the
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
service incomes according to the completion percentage method and recognized the completion
schedule of the provided service transaction according to the proportion of the costs occurred
accounting for the total estimated costs. If the provided services transaction results cannot be reliably
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
estimated at the balance sheet date and the occurred service costs can be expected to have
compensation, the company shall recognize to provide the service revenue according to the occurred
service cost amount and transfer the service costs as per the same amount. If the occurred service
costs cannot be expected to have compensation, the occurred service costs shall be recorded into the
current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the right to use
assets meets the requirements of the possible inflow of the relevant economic benefits and the reliable measurement of
revenue amount. The interest income shall be calculated and determined according to time and actual interest rate of
the monetary capital of the company used by others, and the royalty revenue shall be measured and determined in
accordance with the charging time and method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of
products in domestic market shall be recognized after the following requirements are met: The
company has agreed to deliver the goods to the purchaser under the contract and the revenue amount
of product sales has been determined, the payment for goods has been withdrawn or the payment
vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to
the products can be measured reliably. The revenue of the sale of products in foreign market shall be
recognized after the following requirements are met: The company has made customs clearance and
departure from port under the contract, the bill of landing has obtained and the revenue of the sale of
products has been recognized, the payment for goods has been withdrawn or the payment vouchers
has been obtained and related economic benefits are likely to inflow, and the costs related to the
products can be measured reliably.
25.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other ways, shall be
recognized as the government subsidy related to the assets. The government grants related to assets are recognized as
the deferred income, equally distributed within the service life of the relevant assets, and recorded into the current
profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government subsidy other than that related to income acquired by the company shall be recognized as the
government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy shall be divided into
that related to assets and that related to income, and the judgment basis is that: ① if the specific purpose of subsidy is
stipulated in the government document, the review and necessary change shall be made at the balance sheet date for
the proportion of division according to the relative proportion of assets expense amount and expense amount recorded
in the budget of the special item. ② only general expression is made in the government documents, and the
government subsidy related to income should be made for the non-particular items.
The government subsidy related to income that used for the compensation of the related expenses or losses in
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
subsequent period, shall be recognized as the deferred income and recorded into the current profits and losses during
the period of the confirmation of relevant expenses. The relevant expenses or losses occurred for the purpose of
compensation shall be directly recorded into the current profits and losses.
3. Recognition Time of Government subsidy
If there is evidence shows that the company can meet the financial support policies and regulations at the end of period,
and the support funds can be expected to receive, the government grants shall be recognized as per the receivable
amount. In addition, the government subsidy should be recognized when actually received.
4. Accounting Method of Government subsidy
The government subsidy shall be measured as per the received or receivable amount if the grants are as the monetary
assets. The government subsidy shall be measured as per the fair value if the grants are as the non-monetary assets,
and shall be measured as per the nominal amount if the fair value cannot be reliably obtained.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and the
difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm the tax
basis as per the provisions of tax law. The temporary difference can be classified into the taxable temporary difference
and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall recognize
the deferred tax assets arising from the future taxable income that obtained to deduce the deductible temporary
difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in the
transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction doesn’t
influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related to
the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are
simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the taxable
income used to offset the deductible temporary difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following transactions as the
deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilities arising
from the transactions with the following features: this transaction is not the business combination, and the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference related to
the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following requirements are
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
simultaneously met: (1) the investment enterprise can control the reversal time of the temporary difference. (2) the
temporary difference is possible to not be reversed in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible to
obtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the book value
of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are recorded
into the owner’s equity when the original recognition, others shall be recorded into the current income tax expense.
The book value of the deferred tax assets reduced can be recovered when sufficient taxable income is possibly
obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the transactions and
items directly recorded into the stockholders’ equity, shall be recorded into other comprehensive incomes or the
stockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from the
business combination, but the rest of the current income tax and the deferred income tax expense or income shall be
recorded into the current profits and losses.
27.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant
assets cost or recognized as the current profits and losses as per the line method, and the initial direct
expense occurred shall be directly recorded into the current profit and loss. The contingent rental
shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current profits and losses
as per the line method, and the initial direct expense occurred shall be directly recorded into the current profit and loss,
except that the large amounts are capitalized and recorded into the profit and loss by stages. The contingent rental shall
be recorded into the current profit and loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value
of leasing assets and the present value of minimum lease payment at the lease commencement date as
the book value of rented assets, recognize the minimum lease payment as the book value of the
long-term payables, and the undetermined fiancéexpense of the difference and the initial direct costs
occurred shall be recorded into the leasing asset value. During each lease period, the current financing
charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease
receivables and initial direct expense at the lease commencement date as the book value of finance
lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
recognize the difference between the sums of minimum lease receivables, minimum lease receivables
and unguaranteed minus the sum of the present value as the unrealized financing income. During
each lease period, the current financing charges shall be measured and recognized by the effective
interest method.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
According to the Provisions on the Accounting Treatment of VAT (No. 22-CaiKuai [2016]), the
amounts of debt, affecting assets, transactions and others related to VAT occurred after May 1, 2016
shall be adjusted with in accordance with the provisions. The Business taxes and surcharges in the
profit statement are adjusted to the item of \"Taxes and surcharges \", while the property tax, land use
tax, vehicle and vessel usage tax, stamp duty and other taxes that were previously included in taxes
related to the management fees are adjusted to be included in \" Taxes and surcharges\" since May 1,
2016.
Items Amount
Taxes and surcharges 3,469,318.93
Management fee -3,469,318.93
The above changes in accounting policies were examined and approved in the 33th meeting of
the sixth term board of directors.
（2）Change of main accounting estimations
Nil
IV. Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT The taxable tumover 17%、5%
Business tax. The taxable tumover 5%
City construction tax Turnover tax to be paid allowances 7%
Education surcharge Turnover tax to be paid allowances 3%
Local education Turnover tax to be paid allowances 2%
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Taxes Tax references Applicable tax rates
surcharge
Business income tax Taxable income 25%、15%
2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company, has been
qualified as national high-tech enterprise since 2016 ,High-tech and enterprise certificate No.: GR201644201276 ,The
certificate is valid for three years, The enterprise income tax rate of this year is 15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of Customs an
d State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Development of New-ty
pe Display Device Industry (Cai Guan Shui (2016) No. 62), Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
manufactured key materials and parts for the upstream industry of new-type display devices including colorful light fil
ter coating and polarizer sheet that comply with the planning for independent development of domestic industries may
enjoy the preferential policies of exemption from import tariff for the import of raw materials and consumables for the
purpose of self use and production that can not be produced domestically from January 1, 2016 and December 31, 202
0.
V. Notes of consolidated financial statement
Unless otherwise stated, the meaning of \"B/f\", \"C/f\", The beginning of the financial statements is the
number of financial statements as of January 1, 2016, and the end of the period is the number of
financial statements as at 31 December 2016. This term refers to January 1, 2016 - December 31,
2016,The same period refers to January 1, 2015 - December 31, 2015.
1.Monetary Capital
Items Year-end balance Year-beginning balance
Cash at hand 22,807.86 8,872.71
Bank deposit 932,021,522.23 750,353,139.33
Other monetary funds 1,812,582.64 1,952,859.49
Total 933,856,912.73 752,314,871.53
Including : The total amount of deposit 23,329,496.78 31,258,353.11
abroad
Notes :As of December 31, 2016，The fixed-term deposit balance of money fund is RMB 3,742,476.16 , this part will
not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2.Bill receivables
(1). Classification Bill receivable
Items Year-end balance Year-beginning balance
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Bank acceptance 41,908,315.45 18,841,745.16
Trade acceptance
Total 41,908,315.45 18,841,745.16
(2). As of December 31, 2016，The company has no Bill receivable pledged.
(3)．Notes endorsement or discount and undue on balance sheet date
Items Amount derecognizing at period Amount derecognizing at
–end period-end
Bank acceptance 45,576,485.05
Trade acceptance
Total 45,576,485.05
(4)Bill transferred to account receivable for the issuer is not able to execute the liability at the
end of period.
3. Account receivable
(1).Classification account receivables.
Amount in year-end
Classification Book balance Bad debt provision
Proportion Book value
Amount Amount Proportion(%)
(%)
Accounts receivable of
individual significance and
6,302,912.11 2.61 4,000,658.05 63.47 2,302,254.06
subject to individual
impairment assessment
Accounts receivable subject to
impairment assessment by
228,090,819.33 94.56 11,596,924.13 5.08 216,493,895.20
credit risk characteristics of a
portfolio
Accounts receivable of
individual insignificance but
6,816,189.64 2.83 5,390,319.49 79.08 1,425,870.15
subject to individual
impairment assessment
Total 241,209,921.08 100.00 20,987,901.67 220,222,019.41
Year-beginning balance
Classification
Book balance Bad debt provision Book value
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Proportion
Amount Amount Proportion(%)
(%)
Accounts receivable of
individual significance and
6,373,036.66 3.16 4,035,782.60 63.33 2,337,254.06
subject to individual
impairment assessment
Accounts receivable subject to
impairment assessment by
189,029,540.68 93.74 9,776,480.20 5.17 179,253,060.48
credit risk characteristics of a
portfolio
Accounts receivable of
individual insignificance but
6,259,765.85 3.10 5,083,708.34 81.21 1,176,057.51
subject to individual
impairment assessment
Total 201,662,343.19 100.00 18,895,971.14 182,766,372.05
(1)Accounts receivable of individual significance and subject to individual impairment assessment.
Amount in year-end
Debtor Account Bad debt
Proportion(%) Reason for allowance
receivable provision
It has been included in the
list of national courts
Dongguan Fair LCD Co., Ltd. 1,698,404.00 1,698,404.00 100.00
dishonest debtor, unlikely to
recover.
Beyond the credit period for
Guangdong Ruili Baolai
1,348,965.36 674,482.68 50.00 a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period for
Dongguan Yaxing
3,255,542.75 1,627,771.37 50.00 a long time, uncertain
Semiconductor Co., Ltd.
recovered.
Total 6,302,912.11 4,000,658.05
（2）Account receivable on which bad debt provisions are provided on age basis in the group
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Within 1 year 227,316,635.47 11,365,831.77 5.00
1-2 years 367,049.73 36,704.98 10.00
2-3 years 45,898.44 13,769.53 30.00
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Over 3 years 361,235.69 180,617.85 50.00
Total 228,090,819.33 11,596,924.13
(2)Recognisation , recovery or reversal of allowance for bad debt：
（1）The account of allowance for bad debts recognised during the period is RMB2,726,559.25, The amount collected
or switches back amounting to 634,628.72.
(3)．The company has no account receivables written off this period.
(4).The ending balance of receivable owed by the imputation of the top five parties
Balance in Proportion(%) Bad debt
Name Nature Aging
year-end provision
Within 1
First Goods 87,644,721.94 36.34 4,382,236.10
year
Within 1
Second Goods 31,220,268.30 12.94 1,561,013.42
year
Within 1
Third Goods 14,743,404.82 6.11 737,170.24
year
Within 1
Fourth Goods 10,752,013.06 4.46 537,600.65
year
Within 1
Fifth Goods 8,960,692.93 3.71 448,034.65
year
Total 153,321,101.05 63.56 7,666,055.06
4.Prepayments
(1)Disclosure by age
Balance in year-end Balance in year-begin
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 5,108,950.81 75.43 5,027,361.20 64.01
1-2 years 592,795.34 8.75 1,033,416.99 13.16
2-3 years 1,033,416.99 15.26 1,754,880.00 22.34
Over 3 years 38,160.00 0.56 38,160.00 0.49
Total 6,773,323.14 100.00 7,853,818.19 100.00
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
First 1,108,752.04 16.37
Second 1,000,000.00 14.76
Third 951,741.61 14.05
Fourth 454,551.46 6.71
Fifth 430,038.00 6.35
Total 3,945,083.11 58.24
5.Interest receivable
(1).Category of interest receivable
Items Amount in year-end Amount in year-beginning
Fixed deposit interest 4,925,279.45 16,472,409.43
Structure deposit interest 1,599,384.48 13,826,529.37
Other financing product 128,219.18
Total 6,652,883.11 30,298,938.80
6.Other receivable
(1)．Category of Other receivable
Amount in year-end
Book Balance Bad debt provision
Classification
Book value
Amount Proportion( Amount Proportion(%)
%)
Other accounts receivable of
individual significance and
11,981,464.60 14.20 11,981,464.60 100.00
subject to individual
impairment assessment
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Amount in year-end
Book Balance Bad debt provision
Classification
Book value
Amount Proportion( Amount Proportion(%)
%)
Other accounts receivable
subject to impairment
71,842,367.36 85.19 4,569,810.64 6.36 67,272,556.72
assessment by credit risk
characteristics of a portfolio
Other accounts receivable of
individual insignificance but
511,820.77 0.61 511,820.77 100.00
subject to individual
impairment assessment
Total 84,335,652.73 100.00 17,063,096.01 67,272,556.72
Amount in year-beginning
Book Balance Bad debt provision
Classification
Book value
Amount Proportion( Amount Proportion(%)
%)
Other accounts receivable of
individual significance and
11,981,464.60 19.67 11,981,464.60 100.00
subject to individual
impairment assessment
Other accounts receivable
subject to impairment
48,425,735.21 79.49 3,292,063.11 6.80 45,133,672.10
assessment by credit risk
characteristics of a portfolio
Other accounts receivable of
individual insignificance but
511,820.77 0.84 511,820.77 100.00
subject to individual
impairment assessment
Total 60,919,020.58 100.00 15,785,348.48 45,133,672.10
(1)Other receivable accounts with large amount and were provided had debt provisions individually at end of
period.
Debtor Amount in year-end
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Other account Bad debt provision Withdrawal Reason for allowance
receivable proportion (%)
Jiangxi Xuanli String Co., No executable
11,389,044.60 11,389,044.60 100.00
Ltd. property, unlikely to
recover.
Shenzhen Tianlong Has been canceled,
592,420.00 592,420.00 100.00
Induatry& Trade Co., Ltd. unlikely to recover
Total 11,981,464.60 11,981,464.60
(2)Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within 1 year 66,549,470.75 3,327,473.52 5.00
1-2 years 3,326,586.25 332,658.63 10.00
2-3 years 367,383.45 110,215.03 30.00
Over 3 years 1,598,926.91 799,463.46 50.00
Total 71,842,367.36 4,569,810.64
2.The current amount of provision for bad debts is RMB1,277,747.53, no withdraw or return for bad debts.
( 3)．The company has no other receivables written off this period.
(4).Other accounts receivable classified by the nature of accounts
Category Year-end balance Year-beginning balance
Customs bond 44,643,087.38
The equity transfer 2,276,015.00
Export rebate 18,179,211.88 37,916,465.75
Unit account 16,812,275.87 16,318,999.87
Deposit 1,858,126.16 2,024,236.32
Reserve fund and staff loans 900,116.01 968,214.01
Other 1,942,835.43 1,415,089.63
Total 84,335,652.73 60,919,020.58
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(5).Top 5 of the closing balance of the other accounts receivable colleted according to the arrears
party
Proportion of Bad debt
the total year provision
Name Nature Closing balance Aging end balance of
the accounts Closing balance
receivable(%)
First Customs bond 44,643,087.38 Within 1 year 52.94 2,232,154.37
Second 17,470,183.40 Within 1 year 20.72 873,509.17
Export rebate
Unit account 709,028.48 1-2 years 0.84 70,902.85
Third Unit account 11,389,044.60 Over 5 years 13.50 11,389,044.60
Within 1
Fourth 1,800,000.00 2.13 90,000.00
years
Unit account 1,800,000.00 1-2 years 2.13 180,000.00
Fifth Deposit 980,461.06 Over 5 years 1.16 490,230.53
Total 78,791,804.92 93.42 15,325,841.52
7.Inventories
（1）Inventories types
Year-end balance Year-beginning balance
Items
Book balance Provision for Book value Book balance Provision for Book value
bad debts bad debts
Raw materials 107,814,144.09 9,148,167.24 98,665,976.85 150,409,810.60 14,406,278.95 136,003,531.65
Processing
4,519,927.47 279,390.02 4,240,537.45 6,871,382.66 493,094.77 6,378,287.89
products
Finished product 139,369,316.72 32,193,843.63 107,175,473.09 128,415,576.27 30,161,550.92 98,254,025.35
Semi-finished
91,137,927.46 19,961,869.86 71,176,057.60 90,791,967.01 22,652,767.02 68,139,199.99
product
Consigned
2,113,669.08 2,113,669.08
processing
Total 344,954,984.82 61,583,270.75 283,371,714.07 376,488,736.54 67,713,691.66 308,775,044.88
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
（2）Inventory Impairment provision
Increased in current period Decreased in current period
Year-beginning Year-end
Items
balance Transferred Transferre balance
Provision Provision
back d back
Raw materials 14,406,278.95 1,579,207.25 6,837,318.96 9,148,167.24
Processing
30,161,550.92 23,702,662.47 21,670,369.76 32,193,843.63
products
Semi-finished
22,652,767.02 12,943,307.86 15,634,205.02 19,961,869.86
product
Finished
493,094.77 892,028.48 1,105,733.23 279,390.02
product
Total 67,713,691.66 39,117,206.06 45,247,626.97 61,583,270.75
8.Other current assets
Items Year-end balance Year-beginning balance
Structural Deposit 428,000,000.00 460,000,000.00
Other financing product 1,000,000,000.00
After the deduction of input VAT 43,157.76 53,553,675.47
Total 1,428,043,157.76 513,553,675.47
9.Available-for-sale financial assets
(1)Available-for-sale financial assets
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Available-for-sale
equity 78,255,766.47 36,689,988.51 41,565,777.96 79,931,512.57 36,689,988.51 43,241,524.06
instruments
Measured by fair 8,378,730.50 8,378,730.50 10,054,476.60 10,054,476.60
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
value
Measured by cost 69,877,035.97 36,689,988.51 33,187,047.46 69,877,035.97 36,689,988.51 33,187,047.46
Total 78,255,766.47 36,689,988.51 41,565,777.96 79,931,512.57 36,689,988.51 43,241,524.06
(2)Available-for-sale financial assets measured by fair value at the period-end
Items Cost Fair value
Equity instrument available for sale 8,940,598.31 8,378,730.50
Fawer （000030） 8,940,598.31 8,378,730.50
Total 8,940,598.31 8,378,730.50
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(3) Available-for-sale financial assets measured by cost at the period-end
Book balance Impairment provision Sharehol
ding
Cash bonus of
proportio
Investee the reporting
Increas Increas n among
Period-begin Decrease Period-end Period-begin Decreased Period-end period
e ed the
investees
Shenzhen Jintian Industry
14,831,681.50 14,831,681.50 14,831,681.50 14,831,681.50 3.68
（Group） Co., Ltd.
Shenzhen Jiafeng Textile Co., ltd. 16,800,000.00 16,800,000.00 16,800,000.00 16,800,000.00 10.80
Shenzhen Guanhua Prnting &
5,491,288.71 5,491,288.71 5,058,307.01 5,058,307.01 45.00
dyeing Co., Ltd.
Shenzhen Union Development
2,600,000.00 2,600,000.00 2.87
Group Co., Ltd
Shenzhen Xiangjiang Trade Co.,
160,000.00 160,000.00 20.00
Ltd.
Shenzhen Xinfang Knitting Co.,
524,000.00 524,000.00 20.00 80,000.00
Ltd.
Shenzhen Dailisi Knitting Co.,
2,559,856.26 2,559,856.26 30.00 837,780.00
Ltd.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Anhui Huapeng Textile Co., Ltd. 25,410,209.50 25,410,209.50 50.00 1,800,000.00
Shenzhen South Textile Co., Ltd. 1,500,000.00 1,500,000.00 9.84 677,640.52
Total 69,877,035.97 69,877,035.97 36,689,988.51 36,689,988.51 3,395,420.52
In the reporting period, Shenzhen Dailisi Knitting Co., Ltd. and Anhui Huapeng Textile Co., Ltd. provided foreign contract in the current period.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
(4)Changes of the impairment of the available-for-sale financial assets during the reporting period
Available for sale equity Available for sale debts
Category Total
instruments instruments
Impairment amount at the beginning
period 36,689,988.51 36,689,988.51
Current provision
Including: Transferred from other
comprehensive income
Decreased of this period
Including: Transferred from the
increased fair value
Impairment amount at the end of
period 36,689,988.51 36,689,988.51
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
10.Long-term equity investment
(1)Long-term equity investment
Increase/decrease
Withdra Closing
Opening Invest Adjustment Chang Cash bonus wal of Closing balance of
Investees
balance Add ment Gains/loss of of other es of or profits impairm balance impairment
Other
investment decrea Investment comprehens other announced ent provision
sed ive income equity to issue provisio
n
I. Joint venture
Shenzhen Haohao Property 708,646.69 5,106,487.57
4,397,840.88
Leasing Co., Ltd.
Shenzhen Xieli Automobile 181,746.48 4,243,705.44 266,654.99
4,061,958.96
Co., Ltd.
Subtotal 8,459,799.84 890,393.17 9,350,193.01 266,654.99
2. Affiliated Company
Shenzhen Changlianfa
96,981.03 1,968,358.12
Printing & dyeing Company
1,871,377.09
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Increase/decrease
Withdra Closing
Opening Invest Adjustment Chang Cash bonus wal of Closing balance of
Investees
balance Add ment Gains/loss of of other es of or profits impairm balance impairment
Other
investment decrea Investment comprehens other announced ent provision
sed ive income equity to issue provisio
n
-1,007,494.50 197,807.78 2,574,327.77
Jordan Garment Factory
3,384,014.49
1,239,036.5
Hongkong Yehui 1,487,523.59 934,205.65 11,223,087.09
9,430,732.63
International Co., Ltd.
Subtotal 577,010.12 1,436,844.3 934,205.65 15,765,772.98
14,686,124.21
Total 23,145,924.05 1,467,403.29 1,436,844.3 934,205.65 25,115,965.99 266,654.99
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector.
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
11.Investment real estate
（1）Measured by the cost of investment in real estate
Constructio
Land use
Items House, Building n in Total
right
process
I. Original price
1. Balance at period-beginning 252,285,892.54 252,285,892.54
2.Increase in the current period 52,387,990.00 52,387,990.00
3.Decrease in the current period 24,943.63 24,943.63
4 Year-end balance 304,648,938.91 304,648,938.91
II.Total accumulated depreciation
accumulated amortization
1. Year-begin balance 117,895,929.49 117,895,929.49
2.Increase in the current period 7,442,829.04 7,442,829.04
(1).Provision or amortization 7,442,829.04 7,442,829.04
3.Decrease in the current period 14,367.39 14,367.39
4 Year-end balance 125,324,391.14 125,324,391.14
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
3.Decrease in the current period
4. Balance at period-end
IV.Book value
1.Book value at period -end 179,324,547.77 179,324,547.77
2.Book value at period-beginning 134,389,963.05 134,389,963.05
（2）Investment real estate without certificate of ownership
Items Book value Reason for certificate not granted
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
51,183,483.36 Need to improve the relevant
Guanhua Building
accreditation information
12. Fixed assets
（1）Fixed assets
Houses & Machinery Transportation
Items Other Total
buildings equipment s
I. Original price
1.Opening balance 490,052,012.48 652,172,073.90 3,691,157.72 19,463,252.46 1,165,378,496.56
2.Increased amount of
2,923,339.79 3,554,848.37 1,689,978.04 8,168,166.20
the period
(1) Purchase 2,923,339.79 3,554,848.37 1,689,978.04 8,168,166.20
3,554,848.37
(2) Transferred from co
nstruction in progress 3,554,848.37
3. Decrease in the current
265,937.00 15,883.52 171,521.02 453,341.54
period
（1）Disposal 265,937.00 15,883.52 171,521.02 453,341.54
4. Balance at period-end 492,709,415.27 655,711,038.75 3,691,157.72 20,981,709.48 1,173,093,321.22
II. Accumulated
amortization
1. Balance at
84,904,035.93 275,623,640.07 2,728,973.22 12,102,360.18 375,359,009.40
period-beginning
2. Increase in the current
14,522,258.89 57,950,444.89 286,738.72 1,614,443.36 74,373,885.86
period
(1) Withdrawal 14,522,258.89 57,950,444.89 286,738.72 1,614,443.36 74,373,885.86
3. Decrease in the current
172,782.89 5,960.94 146,117.77 324,861.60
period
（1）Disposal 172,782.89 5,960.94 146,117.77 324,861.60
4. Balance at period-end 99,253,511.93 333,568,124.02 3,015,711.94 13,570,685.77 449,408,033.66
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Houses & Machinery Transportation
Items Other Total
buildings equipment s
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
3. Decrease in the current
period
4. Balance at period-end
IV.Book value
1.Book value at period
393,455,903.34 322,142,914.73 675,445.78 7,411,023.71 723,685,287.56
-end
2.Book value at
405,147,976.55 376,548,433.83 962,184.50 7,360,892.28 790,019,487.16
period-beginning
Current depreciation is RMB74,373,885.86 .
13.Project under construction
（1）Project under construction
Year-end balance Year-beginning balance
Book balance Provis Book Net value Book balance Provisio Book Net
Items
ion for n for value
devalu devaluat
ation ion
TFT-LCD
116,849,202.46 116,849,202.46 36,212,078.79 36,212,078.79
polarizing film II
project (6 line)
Guanhua Building
39,004,527.58 39,004,527.58
Project
2,955,028.97 2,955,028.97 586,980.33 586,980.33
Other
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Year-end balance Year-beginning balance
Book balance Provis Book Net value Book balance Provisio Book Net
Items
ion for n for value
devalu devaluat
ation ion
Total 119,804,231.43 119,804,231.43 75,803,586.70 75,803,586.70
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
（2）Changes of significant construction in progress
Including
Capitalisa
：Current
Transferre Other tion of Capitalisation
Amount at year Increase at this Balance in Proportion( Progress amount of
Name Budget d to fixed decreas interest of interest Source of funds
beginning period year-end %) of work capitalizat
assets e accumulat ratio（%)
ion of
ed balance
interest
TFT-LCD RMB
polarizing film II 700.34 36,212,078.79 80,637,123.67 116,849,202.46 16.68% 16.68% Collect and Self-
project million
Total 36,212,078.79 80,637,123.67 116,849,202.46 Total
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
14.Intangible assets
（1）List of intangible assets
Proprietary
Items Land use right Software Total
technology
I. Original price
1.Opening balance 48,765,130.50 11,825,200.00 1,938,280.00 62,528,610.50
2.Increased amount of the
56,934.11 205,300.00 262,234.11
period
(1) Purchase 56,934.11 205,300.00 262,234.11
3.Decreased at thisperiod
4. Balance at period-end 48,822,064.61 11,825,200.00 2,143,580.00 62,790,844.61
II.Accumulated amortization
1. Balance at period-beginning 9,383,309.73 11,825,200.00 693,164.43 21,901,674.16
2. Increase in the current period 940,465.78 250,050.35 1,190,516.13
(1) Withdrawal 940,465.78 250,050.35 1,190,516.13
3.Decreased amount of the period
4. Balance at period-end 10,323,775.51 11,825,200.00 943,214.78 23,092,190.29
III. Impairment provision
1. Balance at period-beginning
2. Increase in the current period
3.Decreased amount of the period
4. Balance at period-end
IV. Book value
1.Book value at period -end 38,498,289.10 1,200,365.22 39,698,654.32
2.Book value at period-beginning 39,381,820.77 1,245,115.57 40,626,936.34
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
15.Goodwill
(1)．General information
Increased at this .Decreased at
Investee Balance in year-begin Balance in year-end
period this period
Shenzhen Beauty Century
Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and
Export Co., Ltd. 82,246.61 82,246.61
Shenzhen Shengbo Optoelectronic
Technology Co., Ltd 9,614,758.55 9,614,758.55
Total
11,864,346.37 11,864,346.37
（2）Impairment of goodwill
Increased at this .Decreased at
Investee Balance in year-begin Balance in year-end
period this period
Shenzhen Beauty Century
Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and
Export Co., Ltd. 82,246.61 82,246.61
Shenzhen Shengbo Optoelectronic
Technology Co., Ltd 9,614,758.55 9,614,758.55
Total
11,864,346.37 11,864,346.37
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
16. Long term amortize expenses
Amortized
Balance in Increase in this expenses Balance in
Items Other loss
year-begin period year-end
Renovation fee 349,029.34 686,512.90 299,824.16 735,718.08
Other 284,512.16 47,148.56 237,363.60
Total 633,541.50 686,512.90 346,972.72 973,081.68
17. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
Balance in year-end Balance in year-begin
Items
Deductible Deferred income tax Deductible Deferred income
temporary difference assets temporary difference tax assets
Assets depreciation
4,114,242.48 1,028,560.61 7,334,802.71 1,833,700.67
reserves
Unattained internal sales
2,769,765.25 415,464.80 2,858,879.80 428,831.98
profits
Changes in fair value of
available for sale financial 561,867.81 140,466.95
assets
Total 7,445,875.54 1,584,492.36 10,193,682.51 2,262,532.65
(2)Details of the un-recognized deferred income tax liabilities
Balance in year-end Balance in year-begin
Items Temporarily Temporarily
Deferred Income Tax Deferred Income
Deductable or Deductable or
liabilities Tax liabilities
Taxable Difference Taxable Difference
Stock equity disposition of
the temporary taxable
42,291,900.69 10,572,975.17
difference and the taxable
income
Changes in fair value of 1,113,878.29 278,469.57
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Balance in year-end Balance in year-begin
Items Temporarily Temporarily
Deferred Income Tax Deferred Income
Deductable or Deductable or
liabilities Tax liabilities
Taxable Difference Taxable Difference
financial assets available
for sale
Total 43,405,778.98 10,851,444.74
(3) Details of unrecognied deferred income tax assets
Items Balance in year-end Balance in year-begin
Deductible temporary difference 85,972,557.55 85,512,740.17
Deductible loss 620,306,699.39 495,605,796.60
Total 706,279,256.94 581,118,536.77
Due to the uncertainty which exists in whether sufficient taxable income can be obtained in the future , therefore,
delay-tax capital has not been confirmed.
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Year Balance in year-end Balance in year-begin Remark
2017 134,292,559.16 134,292,559.16
2018 129,226,944.33 129,226,944.33
2019 148,095,898.11 148,095,898.11
2020 83,990,395.00 83,990,395.00
2021 124,700,902.79
Total 620,306,699.39 495,605,796.60
18. Short-term loan
（1）Categories of short-term loans
Items Balance in year-end Balance in year-Beginning
Credit loans 12,335,695.77 53,866,521.87
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Items Balance in year-end Balance in year-Beginning
Total 12,335,695.77 53,866,521.87
19.Account payable
（1）Account payable
Items Balance in year-end Balance in year-begin
Within 1 year 174,417,235.90 221,732,534.76
1-2 years 57,989.27 339,044.59
2-3 years 300,642.80 64,917.00
3-4 years 37,090.00 187,643.43
4-5 years 161,238.93 38,046.00
Over 5 years 487,518.82 5,166,622.82
Total 175,461,715.72 227,528,808.60
20. Advance account
（1） Advance account
Items Balance in year-end Balance in year-begin
Within 1 year 29,225,153.57 27,505,005.53
1-2 years 433,268.34 45,161.00
2-3 years 10,224.00
Over 5 years 639,024.58 639,024.58
Total 30,297,446.49 28,199,415.11
21.Payable Employee wage
（1）Payable Employee wage
Items Balance in Increase in this Payable in this Balance in
year-begin period period year-end
I. Short-term employee benefits 34,557,822.40 122,222,937.59 129,401,040.13 27,379,719.86
II. Post-employment benefits 750,000.00 8,951,131.55 9,701,131.55
III. Termination benefit 57,400.00 57,400.00
Total 35,307,822.40 131,231,469.14 139,159,571.68 27,379,719.86
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
（2）Short-term remuneration
Items Balance in Increase in this Payable in this Balance in
year-begin period period year-end
1.Wages, bonuses, allowances and 32,472,129.09 106,310,272.17 112,876,303.08 25,906,098.18
subsidies
2.Employee welfare 6,296,473.40 6,296,473.40
3. Social insurance premiums 2,480,176.29 2,480,176.29
Including：Medical insurance 2,016,036.10 2,016,036.10
Work injury insurance 182,659.21 182,659.21
Maternity insurance 281,480.98 281,480.98
4. Public reserves for housing 520,000.00 4,790,841.50 5,310,841.50
5.Union funds and staff education fee 1,565,693.31 2,345,174.23 2,437,245.86 1,473,621.68
Total 34,557,822.40 122,222,937.59 129,401,040.13 27,379,719.86
（3）Defined contribution plans listed
Balance in Increase in this Payable in this Balance in
Items
year-begin period period year-end
1. Basic old-age insurance premiums 6,978,513.92 6,978,513.92
2.Unemployment insurance 278,861.14 278,861.14
3. Annuity payment 750,000.00 1,693,756.49 2,443,756.49
Total 750,000.00 8,951,131.55 9,701,131.55
22.Tax Payable
Items At end of term At beginning of term
VAT 6,142,344.63 135,460.12
Business Tax 510,707.45
City Construction tax 523,339.31 31,836.84
Enterprise Income tax 4,152,120.51 12,570,466.83
Individual Income tax 428,263.53 480,334.74
House property Tax 1,538,122.93 750,607.19
Education surcharge 373,812.63 22,964.43
Other 837,722.65 180,265.49
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Items At end of term At beginning of term
Total 13,995,726.19 14,682,643.09
23.Interest Payable
（.1）Interest Payable
Items At end of term At beginning of term
Interest on long-term borrowings payable 42,805,384.31 39,000,625.75
Interest on short-term borrowings 37,221.21 88,262.21
Total 42,842,605.52 39,088,887.96
24.Other payable
（1）Disclosure by nature
Items At end of term At beginning of term
Engineering Equipment fund 46,903,714.95 59,222,758.80
Unit account 49,538,660.22 24,819,916.41
Deposit 24,625,922.69 19,151,806.04
Other 26,040,292.33 22,581,242.55
Total 147,108,590.19 125,775,723.80
25.Non-currentliabilitiesdue within 1 year
Items At end of term At beginning of term
Long-term borrowings due with in 40,000,000.00 40,000,000.00
1year
Total 40,000,000.00 40,000,000.00
The long-term borrowings at the end of period are the borrowings extended to the Company by Pingan
Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd.
26.Long-term borrowings
（1）Long-term term borrowings
Items At end of term At beginning of term
Credit borrowings 80,000,000.00 120,000,000.00
Total 80,000,000.00 120,000,000.00
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
The long-term borrowings at the end of period are the borrowings enxtended to the Company by Pingan
Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd.
27.Deferred income
Balance in Increase at this Decrease at this
Items Balance in year-end
year-begin period period
Govemment Subsidy 99,524,165.58 15,034,535.45 4,512,916.41 110,045,784.62
Total 99,524,165.58 15,034,535.45 4,512,916.41 110,045,784.62
Details of govemment subsidy：
The
New grants Income
Balance in non-operating Balance in
Items amount of this related to
year-begin revenue amount year-end
period assets
of this period
Related to
Textile special funds
1,000,000.02 142,857.14 857,142.88 assets
High-tech Industrialization Related to
demonstration projects 800,000.00 200,000.00 600,000.00 assets
National grant funds for
Related to
new flat panel display
assets
industry 4,000,000.00 1,000,000.00 3,000,000.00
Related to
Borrowing discount
967,777.64 241,944.44 725,833.20 assets
Grant funds for TFT-LCD Related to
polarizer industry project 8,233,333.34 1,300,000.00 6,933,333.34 assets
Grant funds for TFT-LCD
Related to
polarizer narrow line (line
assets
5) project 3,500,000.00 500,000.00 3,000,000.00
Purchase of imported Related to
equipment and technology 1,202,287.38 175,090.20 1,027,197.18 assets
Innovation and venture
Related to
capital for TFT-LCD
assets
polarizer I project 350,000.00 50,000.00 300,000.00
Shenzhen polarizing
materials and Technology Related to
Engineering Laboratory assets
innovation venture capital 462,500.00 50,000.00 412,500.00
Shenzzhen Engineering
laboratory polarizing Related to
material and technical assets
engineering 4,625,000.00 500,000.00 4,125,000.00
Capital funding for 2,775,000.00 300,000.00 2,475,000.00 Related to
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
Technology Center assets
Subsidy funds to support th
Related to
e introduction of advanced t
assets
echnology 100,716.70 14,388.10 86,328.60
Grant funds for TFT-LCD
Related to
polarizer narrow line (line
assets
6) project 15,000,000.00 15,000,000.00
Grant funds for TFT-LCD
Related to
polarizer narrow line (line
assets
6) project 10,000,000.00 10,000,000.00
Grant funds for TFT-LCD
Related to
polarizer narrow line (line
assets
6) project 500,000.00 500,000.00
Imported equipment and
Related to
technology of discount
assets
interest funds 857,705.00 857,705.00
key technology
research and development
Related to
projects of optical
assets
compensation film for
polarizer 5,000,000.00 5,000,000.00
Strategic industries
Related to
Development fund of
assets
Guangdong Province 20,000,000.00 5,000,000.00 25,000,000.00
Grants of Purchase
equipment of TFT-LCD Related to
polarizing film phase II assets
project 20,000,000.00 10,000,000.00 30,000,000.00
Energy saving Related to
transformation grant funds 149,845.50 34,535.45 38,636.53 145,744.42 assets
Total 99,524,165.58 15,034,535.45 4,512,916.41 110,045,784.62
(1).According to the \"Notice on National Development and Reform Commission to the General Office of the
textile project management of the special funds\" (Faigaiban [2006]2841), on December 22, 2006, the Company
received \"Textile special\" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14 years
as asset depreciation period for amortization with the corresponding equipment in current period. The amortization in
accordance with the corresponding equipment, The non-operating income in current period is RMB142,857.14, the
ending balance of uncompleted amortization is RMB 857,142.88 .
(2).According to the document of Shenzhen Municipal Development and Reform Commission 【2009】 No. 416
that \"The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet Security
Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and Consultation
Service of Information Security Industry and other National High-tech Industrial Base Platform Projects”, on May
2009, the company received the Shenzhen Municipal Development and Reform Commission high-tech
Shenzhen Textile (Holdings) Co., Ltd. Notes to financial statements
industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City Bureau of
Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our company will
use 10 years as asset depreciation period for amortization in current period. The non-operating income in current
period is RMB 200,000.00 and the balance amount of unfinished final amortization is RMB 600,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on \"The Office
of the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidies
RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display Industrialization
Special Project for the construction of “The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009,
December 2009 and April 2010, the company received the special subsidies of State Development and Reform
Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation period for amortization. The
non-operating income in current period is RMB100,000.00, the balance amount of unfinished final amortization is
RMB3,000,000.00.
(4)On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of
RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocat
