ShenzhenTextile(Holdings)Co.,Ltd.
TheSemi-AnnualReport2020
August2020
I.ImportantNotice,TableofContentsandDefinitions
TheBoardofDirectors，theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.Mr.ZhuJun,TheCompanyleader,Mr.HeFei,ChieffinancialofficerandtheMs.MuLinying,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthesemi-report.AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.I.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,investorsshouldbecautiouswithinvestmentrisks.II.Thecompanyhasthemacroeconomicrisks,marketcompetitionrisksandrawmaterialrisks.Investorsareadvisedtopayattentiontoinvestmentrisks.Fordetails,pleaserefertothepossibleriskfactorsthatthecompanymayfaceinthe“XProspectsforthefuturedevelopmentofthecompany"inthe“SectionIVDiscussionandAnalysisofBusinessOperation”.III.Thecompanytoremindthemajorityofinvestors，SecuritiesTime,ChinaSecuritiesJournal,SecuritiesDaily,ShanghaiSecuritiesNews,HongkongCommercialDailyandJuchaoWebsite（http://www.cninfo.com.cn）arethemediaforinformationdisclosureappointedbytheCompany,allinformationunderthenameoftheCompanydisclosedontheabovesaidmediashallprevail,andinvestorsareadvisedtoexercisecautionofinvestmentrisks.TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.ThisReporthasbeenpreparedinbothChineseandEnglish.Incaseofanydiscrepancy,theChineseversionshallprevail.
TableofContents
I.ImportantNotice,TableofcontentsandDefinitionsII.BasicInformationoftheCompanyandFinancialindexIII.OutlineofCompanyBusinessIV.Management’sDiscussionandAnalysisV.ImportantEventsVI.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVII.SituationofthePreferredSharesVIII.InformationaboutconvertiblecorporatebondsIX.InformationaboutDirectors,SupervisorsandSeniorExecutivesX.CorporateBondXI.FinancialReportXII.Documentsavailableforinspection
Definition
Termstobedefined
| Termstobedefined | Refersto | Definition |
| Company/TheCompany/ShenTextile | Refersto | ShenzhenTextile(Holdings)Co.,Ltd |
| ArticlesofAssociation | Refersto | ArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd |
| Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | Refersto | NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment |
| TheControllingshareholder/ShenzhenInvestmentHoldingCo.,Ltd. | Refersto | ShenzhenInvestmentHoldingCo.,Ltd. |
| ShenchaoTechnology | Refersto | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. |
| ShengboOptoelectronic | Refersto | ShenzhenShengboOptoelectronicTechnologyCo.,Ltd. |
| JinjiangGroup | Refersto | HangzhouJinjiangGroupCo.,Ltd. |
| NittoDenko | Refersto | NittoDenkoCorporation |
| KunshanQimei | Refersto | KunshanZhiqimeiMaterialTechnologyCo.,Ltd. |
| JinxinInvestment | Refersto | LanxiJinxinInvestmentManagementCo.,Ltd. |
| ChangxingJunying | Refersto | ChangxingJunyingEqkuityInvestmentPartnership（LP） |
| HuaijiInvestment | Refersto | HangzhouHuaijiInvestmentManagementCo.,Ltd. |
| GuanhuaCompany | Refersto | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. |
| Line4 | Refersto | TTFT-LCDpolarizerIIphaseLine4project |
| Line5 | Refersto | TFT-LCDpolarizerIIphaseLine5project |
| Line6 | Refersto | TFT-LCDpolarizerIIphaseLine6project |
| Line7 | Refersto | IndustrializationprojectofpolaroidforsuperlargesizeTV |
| “CSRC” | Refersto | ChinaSecuritiesRegulatoryCommission |
| CompanyLaw | Refersto | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | Refersto | SecuritiesLawofthePeople’sRepublicofChina |
| TheReport | Refersto | TheSemi-annualReport2020 |
II.BasicInformationoftheCompanyandFinancialindex
Ⅰ.CompanyInformation
Stockabbreviation
| Stockabbreviation | ShenTextileA,ShenTextileB | Stockcode： | 000045,200045 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameinChinese | 深圳市纺织(集团)股份有限公司 | ||
| Chineseabbreviation(Ifany) | 深纺织 | ||
| Englishname(Ifany) | SHENZHENTEXTILE（HOLDINGS）CO.,LTD | ||
| Englishabbreviation(Ifany) | STHC | ||
| LegalRepresentative | ZhuJun | ||
II.Contactpersonandcontactmanner
| Boardsecretary | SecuritiesaffairsRepresentative | |
| Name | JiangPeng | LiZhenyu |
| Contactaddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen |
| Tel | 0755-83776043 | 0755-83776043 |
| Fax | 0755-83776139 | 0755-83776139 |
| jiangp@chinasthc.com | lizy@chinasthc.com |
III.Other
(1)WaytocontacttheCompanyWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot
□Applicable□√NotApplicableTheregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompanydidnotchangeduringthereportingperiod.Thesaidinformationcanbefoundinthe2019AnnualReport.
（2）InformationinquiryWhetherinformationdisclosureandpreparationplacechangedinreportingperiodornot
□Applicable√NotapplicableNoneoftheofficialpresses,website,andplaceofenquiryhasbeenchangedinthesemireportperiod.FordetailspleasefindtheAnnualReport2019.
IV.SummaryofAccountingdataandFinancialindexMaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyears
□Yes√No
Reportingperiod
| Reportingperiod | Sameperiodoflastyear | YoY+/-（%） | |
| Operatingincome（RMB） | 856,313,348.74 | 1,008,863,295.50 | -15.12% |
| Netprofitattributabletotheshareholdersofthelistedcompany（RMB） | 719,734.74 | 7,832,287.98 | -90.81% |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany（RMB） | -7,117,945.43 | -10,548,582.20 | 32.52% |
| Cashflowgeneratedbybusinessoperation,net（RMB） | -135,619,475.23 | 23,826,362.35 | -669.20% |
| Basicearningpershare(RMB/Share) | 0.0014 | 0.0153 | -90.85% |
| Dilutedgainspershare(RMB/Share)(RMB/Share) | 0.0014 | 0.0153 | -90.85% |
| WeightedaverageROE(%) | 0.03% | 0.32% | -0.29% |
| Asattheendofthereportingperiod | Asattheendoflastyear | YoY+/-（%） | |
| Totalassets（RMB） | 4,476,298,874.25 | 4,531,399,885.99 | -1.22% |
| Netassetsattributabletoshareholderoflistedcompany（RMB） | 2,730,559,277.47 | 2,727,764,144.36 | 0.10% |
V.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards.
□Applicable√NotapplicableNodifference.
2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
VI.Itemsandamountofdeductednon-currentgainsandlosses
√Applicable□Notapplicable
InRMB
Items
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade) | -6,837.44 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 13,045,221.53 | Mainlyduetorecognizeotherincomefromgovernmentsubsidiesrelatedtothemainbusiness. |
| Othernon-businessincomeandexpendituresotherthantheabove | -85,979.49 | |
| Less:Influencedamountofincometax | 22,685.75 | |
| Influencedamountofminorshareholders’equity(aftertax) | 5,092,038.68 | |
| Total | 7,837,680.17 | -- |
FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompainesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason.
□Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.
III.BusinessProfileⅠ.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod(I)Thecompany'smainbusiness
Thecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.Duringthereportingperiod,thecompany'smainbusinessconditionsareasfollows:Firstly,itcompletestheintroductionandmassproductionofmultiplecustomersandprojects,optimizesthesalesstructureofpolarizers,andimprovesthesalesprofitmargin.Secondly,bystrengtheningqualityinspectionandprocessmanagement,itimprovesautomationlevel,optimizingsupplychainsystem,promotesinventoryeliminationandothermeasures,continuouslyimprovestheoperationalcapabilityandcontinuouslyreducestheoperatingcostofmainbusiness.Thirdly,itfullypromotestheconstructionoftheindustrializationproject(Line7)ofultra-large-sizeTVpolarizers.TheprojectofLine7wasfullyresumedinmid-Marchduetotheepidemicsituation.Thecompanyisfullypromotingtheprojectconstruction,strengtheningthemonitoringandmanagementofbudget,scheduleandquality,activelypromotingtechnicalexchangeswithNittoDenkoandKunshanZhiqimei,andstrivingtocompletealltheworkonschedulewithhighquality.Fourthly,inordertojointlycopewiththeCOVID-19andactivelyfulfillsocialresponsibilities,thecompanyanditswholly-ownedenterprisesrespondtothecallofShenzhenMunicipalPartyCommitteeandMunicipalGovernmentandState-ownedAssetsSupervisionandAdministrationCommission,andreducetherentofsometenantsoftheirownproperties(exceptresidentialproperties)inFebruaryandMarchthisyear.Fifthly,inordertoimprovetheoveralloperationabilityofthecompany'sassetsandrevitalizetheexistingassets,thecompanyplanstoimplementthetransferandliquidationworkforthepoorlymanagedshareholdingenterprisesandconcentrateondevelopingthepolarizerbusiness.Sixthly,itimplementstheepidemicpreventionandcontrolwork,focusesonsafeandgreenproduction.Thecompanysetsupaspecialclassforepidemicpreventionandcontrolwork,formsacoordinatedandefficientepidemicpreventionworkmechanismwithresponsibilitiesaccordingtodivisionandlevel-by-leveltransmission,whichensurestheimplementationofvariousdeploymentmeasures,concentratedremediation,focusedinvestigationofsafetyandenvironmentalprotectionissues,promotesthesafeandstabledevelopmentofenterprise,andactivelyfulfillssocialresponsibilities.(II)Mainproductsandtheirpurposes
AsatypeofupstreamrawmaterialsofLCDpanelsandoneofessentialandfundamentalmaterialsinthepaneldisplayindustry,polarizersarewidespreadusedinavarietyofareas,LCDpanelsandOLEDpanelsforsmartphones,tabletPCsandTVsets,instruments,apparatuses,sunglasses,andlightfiltersofcameraequipment,tonameafew.Atthemoment,theCompanyhas6masspolarizerproductionlinesformakingproductsthatcoversuchareasasTN,STN,TFT,OLED,3D,dyefilms,andopticalfilmsfortouchscreensandareprimarilyusedinTV,NB,navigators,Monitor,vehicle-mounted,industrialcontrol,instruments,apparatuses,smartphones,wearableequipment,3Dglasses,sunglassesandotherproducts,basedonwhich,theCompanyhasbecomeaqualifiedsuppliertoChinaStarOptoelectronicsTechnology(CSOT),BOE,CenturyTechnology,LGD,Tianmaandothermajorpanelenterprisesthroughconstantextensionofitsmarketingchannelsandbuildingofitsownbrand.（III)Operationmodel
Thecompany'smainbusinesspolarizerbusinessmodeliscustomerdemand-centered,jointresearchand
development,andcomprehensiveservice.TheCompanyreducesproductionlinksandcostsandcreatesvalueforcustomersandawin-winsituationthroughcooperationbydeeplyunderstandingcustomers'needs,makinghigh-qualityproductsthroughmulti-partyjointresearch&developmentandhigh-standardproductionmanagementandusingadvancedpolarizerrollingandattachingequipmentinconjunctionwithdownstreampanelmanufacturers'productionlines.
(IV)Majorperformancedrivers
Referto"III.Analysisoncorecompetitiveness"inthissectionfordetails.Relyingonmorethan20yearsofindustrialoperationexperienceandregionaladvantages,theCompanywilldeepenthemixed-ownershipreformworkandstrengthenstrategiccooperation.Tobespecific,theCompanywillfurtherpromoteitsproductiontechnologyandbusinessmanagementstandardsthroughintegrationofresourcesinthepolarizerandopticalfilmindustries;meanwhile,theCompanywillseizetheopportunityandsparenoefforttopushforwardtheconstructionofanultra-widepolarizerproductionlinetooccupythehighlylucrativejumboLCDTVpolarizerproductmarket;inadditiontoworkingonthepolarizerindustry,theCompanywillmakealeapingdevelopmenttowardstheopticalfilmindustryrelatedwithflatpaneldisplaytomakeSAPOPhotoelectricabiggerandstrongerenterprise.Ⅱ.MajorChangesinMainAssets
1.MajorChangesinMainAssets
Mainassets
| Mainassets | Majorchanges |
| Equityassets | Nomajorchanges |
| Fixedassets | Nomajorchanges |
| Intangibleassets | Nomajorchanges |
| Constructioninprocess | Attheendoftheperiod,theConstructioninprocessincreasedbyRMB115.3819millioncomparedwiththebeginningoftheperiod,anincreasedof13.74%,MainlyduetothecurrentinvestmentofLine7project. |
2.MainConditionsofOverseasAssets
□Applicable√NotapplicableⅢ.AnalysisOncoreCompetitiveness
（1）Technologyadvantages.ShengboOptoelectronicisthefirstdomesticnationalhigh-techcompanywhichenteredintotheR&Dandproductionofthepolarizer，Weareoneofthelargest,mosttechnicalandprofessionalpolarizerR&Dteamsinthecountryandhasmorethan20yearsofoperatingexperienceinthepolarizerindustry.ProductsincludeTN-type,STN-type,IPS-TFT-type,VA-TFT-type,OLED,vehicle-mountedindustrialdisplay,flexibledisplay,3Dstereoandpolarizerforsunglasses,andopticalfilmfortouchscreens,etc.,Wehaveproprietarytechnologyforpolarizersandnewintellectualpropertyrightsforvariousnewproducts.Bytheendofthereportingperiod,SAPOPhotoelectrichasappliedfor101patentsintotal(76licensed),including30nationalinventionpatents(12
licensed),64nationalutilitymodelpatents(60licensed),1internationalinventionpatent(0licensed)and6internationalutilitymodelpatents(4licensed).SAPOPhotoelectricstudiedandformulated4nationalstandardsand2industrialstandardswhichhavebeenadoptedandputintopractice.SAPOPhotoelectrichastwotechnicalplatforms--"ShenzhenPolarizingMaterialsandTechnologyEngineeringLab"and"ShenzhenMunicipalResearchandDevelopmentCenter"wherefocusisgiventoresearch&developmentandindustrializationofkeyLCDpolarizerproductiontechniques,research&developmentandindustrializationofnewOLEDpolarizerproductsandresearchonlocalizationofpolarizerproductionmaterials.Throughtheintroductionofvarioustypesofsophisticatedtestingequipmentstoperfectthetestmeansofsmall-scaletestandmedium-scaletest,furtherbyimprovingtheincentivesystemofresearchanddevelopmentandbuildingthecollaborativeinnovationplatformof“Industry-Study-Research-Utilization”andsoforthmeans,thecompanycomprehensivelyenhancedthelevelofresearchanddevelopment.
（2）Talentsadvantages.TheCompanyhasapolarizermanagementteamandateamofseniortechnicianswithstrongtechnicalability,long-termcooperation,richexperienceandinternationalvision.Throughopenmarketselection,theCompanyhashiredprofessionalseniormanagementpersonnel,builtateamofprofessionalmanagers,cultivatedaprofessionalmanagercultureandenhancedthecorecompetitivenessoftheenterprise.TheCompanyhasestablishedatechnicalcooperationrelationshipwithNittoDenkoCorporation,aworld-classpolarizermanufacturer,tolearnadvancedpolarizerproductionmanagementconcepts.Meanwhile,theCompanyhasaccumulatedtechnicalexperiencethroughindependentinnovation,improveditscorecompetitiveness,andgraduallyaccumulateditsownadvantagesinbrand,technology,operationandmanagement.Accordingtotheobjectivesofoperationimprovementandmanagementoptimization,inordertoimprovetheoperationstatusofSAPOPhotoelectric,furtherpromotethespecialization,professionalizationandmarketizationofmanagementpersonnelandoptimizethemanagementteam,thetop-leveldesignofSAPOPhotoelectricwascompletedinJanuary2020,and3professionalmanagerswereselectedandassignedtopoststhroughmarketization.Meanwhile,inordertoeffectivelypromotetheimprovementofkeybusinessissues,SAPOPhotoelectrichascompletedtheorganizationalstructureadjustment,leadershipdivision,internalcompetitionformiddlemanagersandsectionchiefs,aswellascontractualmanagementofmarket-basedselectionofmanagementteams,andestablishmentofsalaryassessmentmechanism.
（3）Marketadvantages.Thecompanyhasagoodmarketcustomerbaseathomeandabroad.Comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinlocalization,closetopanelmarketandstrongsupportofnationalpolicies.Intermsofmarketdemand,withtheconstructionandplanningofGeneration10.5/Generation11andadvancedgenerationTFT-LCDpanelproductionlineproductioninsuccession,theproductioncapacityofadvancedgenerationTFT-LCDpanelswillincreaseconsiderablyinthenextfewyearsinmainlandChina,andthecorrespondingdomesticmarketdemandforpolarizerswillalsogrow.Thedomesticmarketisthemostimportantmarketforpolarizermanufacturers,especiallythelarge-scalepolarizermarket,whichwillusherinimportantindustryopportunitiesinmainlandChina;Whenitcomestomarketdevelopment,focusedoncustomers'needs,theCompanywillkeepoptimizingitsproductionprocessandproductstructure,tightenqualitycontrolandwellbindproductionandsalestogether,buildaquickresponsemechanism,givefullplaytoitslocalstrengths,takeadvantageofallthetechniquesandtalentsaccumulated,providegoodpoint-to-pointprofessionalservices,promotetheverificationofalltypesofmachineryconcerningtheoverallstrategicdeploymentandformastablesupplychaintoincreaseitsmarketshare.
(4)Qualityadvantages.Thecompanyalwaysadherestothequalitypolicyof“meetingcustomerneedsandpursuingexcellentquality”,attachinggreatimportancetoproductqualitycontroltomakeproductsuptotheinternationalqualitystandard.Thecompanyhasstrictlycontrolledproductperformanceindicators,standardizedincominginspectionstandard,toachievesimultaneousimprovementinoutputandqualitybyimprovingquality
andreducingconsumption.throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.
（5）Managementadvantages.TheCompanyhasbeendeeplycultivatingtheindustryformorethan20yearsandhasaccumulatedrichmanagementexperienceintheproductionofpolarizer.Ithasadomesticleadingpolarizerproductionmanagementprocesscontrolsystem,qualitymanagementsystemandstablerawmaterialsupplychannels.TheCompanyhascarriedoutcomprehensivebenchmarkingwork,organizedmanagerstolearnadvancedexperiencefromcustomersandpeers,vigorouslyimplementedstandardizedmanagement,refinedmanagementprocess,learnedfromforeignpolarizerbusinessmanagementexperience,optimizedtheCompany'sorganizationalstructure,reducedmanagementlevels,andfurtherimprovedtheCompany'smanagementefficiency.Afterintroductionofstrategicinvestors,theCompanylearnsfromothers'strongpointsandclosethegapthroughthereformofmixedownershipsystem,absorbthevitalityofprivateenterprises,continuestoimplementadvancedmanagementsystemandreasonableincentivemechanism,improvesdecision-makingefficiency,speedsupmarketreaction,perfectsR&Dincentivesystem,andrealizesthevalueofenterprisesandemployees,learnfromeachother'sstrengthsandmakeupfortheweaknesses,absorbthevitalityofprivateenterprises,continuestothein-depthintegrationofthevalueofthecompanyandemployees,andstimulatesnewvitalityinbusiness.
（6）Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry,whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholeindustrychainofthepaneldisplayindustryclusterinShenzhen.Recognizedasanationalhigh-techenterprise,SAPOPhotoelectricisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational,provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,SAPOPhotoelectrictightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherloweritsproductioncostandimproveitsproductcompetitiveness.
IV.Management’sDiscussionandAnalysis
Ⅰ.General
Inthefirsthalfof2020,facingtheseverechallengeofthesuddenpneumoniaepidemicinCOVID-19,thecompanywentallouttopreventandcontroltheepidemicandresumeproduction,madegreateffortstoensurethemainproductionandoperationofpolarizers,acceleratedtheconstructionofultra-largeTVpolarizerline7project,respondedtothecallofthemunicipalgovernment,municipalSASACandShenzhenInvestmentHoldings,andreducedrentandfeestosupporttherealeconomytoovercomedifficulties.Duringthereportingperiod,theCompanyrealizedtheoperatingincomeofRMB856million,representingadecreaseofRMB153millionor15.12%overthesameperiodoflastyear;thetotalprofitwasRMB-3.7328million,representingadecreaseofRMB7.7789millionor192.26%overthesameperiodlastyear;thenetprofitofshareholdersattributabletolistedcompanieswasRMB719,700,whichwasRMB7.1126millionlowerthanthatofthesameperiodlastyearand90.81%lowerthanthatofthesameperiodlastyear.Duringthereportingperiod,theadjustmentoftheorderstructureofTFT-LCDLine4/6productsachievedinitialresults,andthelossesofpolarizerbusinessdecreasedsignificantlyyearonyear.Themainreasonsforthedecreaseinnetprofitattributabletoshareholdersoflistedcompaniescomparedwiththesameperiodoflastyearareasfollows:Firstly,inordertojointlycopewiththeCOVID-19epidemicandactivelyfulfillsocialresponsibilities,thecompanyanditswholly-ownedenterprisesrespondedtothecalloftheShenzhenMunicipalPartyCommitteeandMunicipalGovernmentandSASACtoreduceandexemptsomerentofitsownproperties(exceptresidentialproperties)inFebruaryandMarchofthisyear,andtherentalincomeduringthereportingperioddecreasedsignificantlyyear-on-year;Secondly,duringthereportingperiod,SAPOPhotoelectric,asubsidiary,didnotcarryouttradebusiness,anditsincomefromtradebusinessdecreasedyearonyear.
Reviewingthefirsthalfof2020,thecompanyfocusedonthekeywork,withcontentsasfollows:
(I)Variousmeasurestoimprovetheoperationandprofitabilityofpolarizerbusiness
Duringthereportingperiod,thecompanycarriesoutthegeneralpolicyof"maintainingutilizationandadjustingstructure",adjustscustomerorders,optimizesproductstructure,adjustssalesstrategies,reducesthesalesshareoflowandnegativegrossprofitproducts,successfullycompletestheimportandmassproductionofmultipleproducts,reachescooperationintentionwithsomeendcustomers,andmakesuseofthestrictrequirementsofqualitycustomersonquality,deliverytimeandcosttoimprovemanagementlevel,timelyunderstandsmarketconditionsandimprovesthecompany'soperationalcapability.Secondly,itstrengthenstheprocessmanagementofqualityinspection,reducestherateofcustomercomplaints,andmakeseveryefforttoimprovethespeedoflineproductionmachinesoastoincreaseproductioncapacityandensurethedeliveryoforderswithgoodqualityandquantity.Thirdly,itcontinuouslyoptimizestheproductionandoperationandreducesthecost.Byimprovingtheautomationlevel,optimizingthesupplychainsystemandstrictlycontrollingtheincreaseofinventory,thecompanyreducestheoperatingcostinmanyways.
Meanwhile,inordertoimprovethecompetitivenessofproductsandstrengthentheresearchanddevelopmentofindependentintellectualpropertyrights,thecompanyhascarriedoutanumberofdevelopmentandapplicationofnewproductsandmaterialsandperformanceimprovementprojectsofmass-producedproductsaroundthemarketdemand,andcompletedthedevelopmentandintroductionofsomeproductsandmaterialsonschedule,reducingcostsandimprovingprofitabilitythroughtheapplicationanddevelopmentofnewproductsandmaterials.Duringthereportingperiod,thecompanyhasappliedfor2patents(utilitymodels),and1patent
wasgrantedanoticeofauthorization.Withthetwotechnicalplatformsof"ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory"and"MunicipalResearchandDevelopmentCenter",thecompanyfocusesontheresearchanddevelopmentandindustrializationofthecoreproductiontechnologyofLCDpolarizers,thedevelopmentandindustrializationofnewproductsofOLEDpolarizers,andthelocalizationofrawmaterialsforpolarizerproduction,activelyexpandsinvestmentinresearchanddevelopment,horizontallyexploresinnovativedevelopmentofmatureproducts,andenhancesitssustainabledevelopmentcapability.(II)ActivelypromotetheconstructionofLine7projectAffectedbytheCOVID-19,thecompanyisfacedwithproblemssuchaslaborshortage,insufficientsupplyofengineeringmaterialsandequipment,limitedtransportation,etc.TheconstructionofLine7projectwasnotfullyresumeduntilmid-March2020.Thecompanyfurtherstrengthenedthemonitoringandmanagementofbudget,schedule,qualityandotheraspects,rearrangedtheconstructiontimenode,andiscurrentlycarryingoutthepurificationanddecorationengineeringconstructionandtheinstallationofextensionmachineequipment.ItisplannedtocompletethemainmachineequipmentdebugginginFebruary2021,andstartthetrialproduction.Duringthereportingperiod,theCompanyhasprudentlydemonstratedthatitwillinvest147.2millionyuanintheconstructionof1RTPproductionlineand2RTSproductionlinesontheLine7project.Thesourceoffundsisitsownfundsandbankloans.Themainreasonsforthisincreaseininvestmentarefirsttomeettheneedsofdownstreampanelcustomersandenhancethedepthofcustomercooperation;second,tohelpimprovetheoverallproductionefficiencyoftheLine7project,simplifytheproductionprocess,andeffectivelyreduceproductioncosts;third,tofurtherimproveEnterprisecompetitivenessprovidesguaranteeforthesuccessfuloperationofLine7project.Fortheabovedetails,pleaserefertothe"AnnouncementontheIncreaseofInvestmentandConstructionProgressintheIndustrializationProjectofPolarizersforUltra-largeTVs(Line7)"byJuchaoInformationNetwork(http://www.cninfo.com.cn)onApril30,2020.(No.2020-25).
(III)ActivelyrespondtothecalloftheMunicipalPartyCommitteeandthemunicipalgovernment,andimplementthepropertyrentreductionmeasures
InaccordancewiththespiritofthedocumentsoftheState-ownedAssetsSupervisionandAdministrationCommissionofthePeople'sRepublicofChinaandShenzhenInvestmentHoldingsontheimplementationofSeveralMeasurestoSupportEnterprisestoOvercomeDifficultiesinResponsetoPneumoniaInfectedbyCOVID-19inShenzhen,thecompanyfirstissuedandpublishedtheimplementationmeasuresforrentexemptionandfeereductionduringCOVID-19epidemicperiod.Non-state-ownedenterprises,scientificresearchinstitutions,medicalinstitutions,individualindustrialandcommercialhouseholdsandoperatingnaturalpersonswhorentthepropertiesofthecompanyandtheirwholly-ownedenterpriseshavebeenexemptedoftherentfor2monthsfromFebruarytoMarchthisyear,whichisRMB13.6931millionaccordingtostatistics;Secondly,itsentaletterto9shareholdersofall6participatingholdingenterprisesincludingpropertyleasingmanagement,proposingthattheparticipatingholdingenterprisesreducetherentfor2months,soastoreducetheoperatingpressurefortheentityoperators.Accordingtostatistics,theparticipatingholdingenterprisesreducedtherentbyRMB5.7702millionintotal.
(IV)Activelystriveforpolicysupport
Thecompanycomprehensivelycombsthegovernment'sindustrialdevelopmentfundsupportpolicies,activelyappliesforthemajorawardprojectsoftheenterprisetechnicaltransformationsupportplanoftheMunicipalBureauofIndustryandInformationTechnology,andappliesforvarioussupportpoliciesinvariousnationalministriesandcommissions,relevantdepartmentsinGuangdongProvinceandShenzhenCity.Asofthedisclosuredateofthisreport,enterpriseshaveactivelyappliedforsubsidiesforepidemicpreventionandcontrolfundsandsubsidiesforprojectsunderconstruction,totalingRMB18.8654million.
(V)Revitalizeexistingassetsandfocusondevelopingthemainbusiness
Inordertoimprovetheoveralloperationalcapabilityofthecompany'sassetsandrevitalizeexistingassets,thecompanyplanstojointlypubliclylistandtransfer20%equityofShenzhenXiangjiangTradingCo.,Ltd.heldbythecompanyand80%equityofShenzhenXiangjiangTradingCo.,Ltd.heldbyHunanGuofuAssetManagementCo.,Ltd.,andthecompanyhasfulfilledtheinternaldecision-makingprocedures.Afterconfirmingthetransferplan,itwillpubliclylistandcollecttheintendedtransferee;Secondly,itwellensurestheliquidationofAnhuiHuapengTextileCo.,Ltd.andrecoverstheinvestmentcost.Atpresent,theshareholdersofAnhuiHuapengTextileCo.,Ltd.havereachedanagreementontheemployeeresettlementandhistoricalissues,andarefurtheracceleratingtheliquidationwork,andplantocompletetheliquidationworkbytheendofthisyear;Thirdly,itacceleratesthedissolutionandliquidationofoverseastextileandgarmentprocessingenterprises.AffectedbytheSino-UStradewarandepidemicsituation,overseasgarmentprocessingenterprisesthathavebeenparticipatinginthecompany'sshareholdingoperationformanyyearsareexperiencingdifficultiesandsustainedlosses,andaregraduallyreducingtheirbusinessandstrivingtocompletethedissolutionandliquidationworkthisyear.
(VI)Implementepidemicpreventionandcontrolproperly,andensuresafeproductioninastableandorderlymanner
Firstly,thecompanystrengthensorganizationalleadershiptoeffectivelypreventandcontrolthespreadoftheepidemic.Thecompanyhassetupaspecialclassforepidemicpreventionandcontrol,refinedthedivisionofresponsibilities,enhancedthejointeffortsofwork,formedacoordinatedandefficientepidemicpreventionworkmechanismwithresponsibilitiesaccordingtodivisionandlevel-by-leveltransmission,andenhancedthedenseepidemicpreventionresponsibilitynetworktoensuretheimplementationofvariousdeploymentmeasuresandeffectivelyprotectthelifesafetyandhealthofemployees.
Secondly,itfullyimplementstheresponsibilitysystemforworksafetyanddeepentheinvestigationandmanagementofpotentialsafetyhazards.Atthebeginningoftheyear,thecompanymadeclearregulationsontheworksafetyoftheenterprise,requiringallenterprisestoimplementthemainresponsibilityofworksafetyandimplementtheone-votevetosystemofworksafety,andincorporateworksafetyintotheannualperformanceappraisalofenterpriseleaders.Meanwhile,theSafetyCommitteeoftheCompanycarriedouton-sitesurpriseinspectionsonconstructionsitessuchasLine7constructionproject,LisiBuildingfacaderenovationprojectandGuanhuaBuildingparkinglotproject,andissuedtimelyrectificationnoticesofpotentialsafetyhazardsandproblems,whichwerecompletedduringthereportingperiod.
(VII)ImplementinspectionandrectificationworkandconsolidatethefoundationofpartybuildingAccordingtotheworkarrangementofthesuperiorPartyCommittee,basedonthestudyofthecentralgroupofthePartyCommitteeandthe"threesessionsandonelesson",thecompanyhasearnestlycarriedoutvariousformsoftheoreticalstudy,strengthenedtheannualspecialassessmentofpartybuilding,theassessmentofpartybranchsecretaryandthesystemconstruction,andconsolidatedthefoundationofpartybuilding.AccordingtothefeedbackfromtheThirdInspectionGroupofthePartyCommitteeofSASAC,itformulatesrectificationmeasures,clarifiesthetimelimitforrectification,timelysubmitsrectificationreportsandpublicizetherectificationsituation,compactstheinspectionandrectificationresponsibilities,andmakesoverallplanstopromotetheimplementationofrectification.II.MainbusinessanalysisRefertorelevantcontentsof“1.Summarization”in“DiscussionandAnalysisofManagement”.Changesinthefinancialdata
InRMB
Thisreportperiod
| Thisreportperiod | Sameperiodlastyear | YOYchange（%） | Causechange | |
| Operatingincome | 856,313,348.74 | 1,008,863,295.50 | -15.12% | |
| Operatingcost | 760,908,303.61 | 940,587,510.73 | -19.10% | |
| Saleexpenses | 13,380,921.28 | 7,369,804.52 | 81.56% | Duringthereportingperiod,thesalaryofsalesstaffincreased,theincreaseofsalesvolumeoutsidetheprovinceleadstoanincreaseintransportationcosts,andtheexpansionofcustomersthroughchannelsmakesthesalesservicefeesincreaseyearonyear. |
| Administrativeexpenses | 44,347,465.66 | 42,901,879.68 | 3.37% | |
| Financialexpenses | 1,761,575.96 | -730,687.94 | 341.08% | Duringthereportingperiod,interestexpensesandexchangelossesdecrease.Interestincomefromstructureddepositswasincludedininterestincomeduringthesameperiodlastyear,andinvestmentincomeisincludedinthisreportingperiod. |
| Incometaxexpenses | 5,258,391.87 | 9,773,007.83 | -46.19% | Duringthereportingperiod,propertyleasingandtradeprofitsdecreaseyear-on-year,andassetdisposalgainsandlossesdecreaseyear-on-year. |
| R&DInvestment | 24,561,050.95 | 19,172,388.20 | 28.11% | Duringthereportingperiod,R&Deffortsareintensified. |
| Cashflowgeneratedbybusinessoperation,net | -135,619,475.23 | 23,826,362.35 | -669.20% | Inthesameperiodoflastyear,thereisrecoveryoftradereceivablesinthepreviousperiod,butthereisnoneinthisreportingperiod. |
Netcashflowgeneratedbyinvestment
| Netcashflowgeneratedbyinvestment | 48,439,746.15 | -450,772,543.46 | 110.75% | Duringthereportingperiod,morestructureddepositsarerecoveredthaninvestments,whileinvestmentinstructureddepositsismorethanrecoveredinthesameperiodlastyear. |
| Netcashflowgeneratedbyfinancing | -8,981,300.40 | -451,630,120.04 | 98.01% | Thereisrepaymentofloaninthesameperiodoflastyear,butthereisnoloaninthisreportingperiod. |
| Netincreasingofcashandcashequivalents | -94,940,308.45 | -878,027,966.87 | 89.19% | Inthereportingperiod,thecashflowpaidbyinvestmentandfinancingislessthanthatinthesameperiodoflastyear. |
Majorchangesinprofitcompositionorsourcesduringthereportperiod
□Applicable√NotapplicableTheprofitcompositionorsourcesoftheCompanyhaveremainedlargelyunchangedduringthereportperiod.ComponentofBusinessIncome
InRMB
| Thisreportperiod | Sameperiodlastyear | Increase/decrease | |||
| Amount | Proportion | Amount | Proportion | ||
| Totaloperatingrevenue | 856,313,348.74 | 100% | 1,008,863,295.50 | 100% | -15.12% |
| OnIndustry | |||||
| Manufacturing | 815,096,304.76 | 95.19% | 643,643,001.98 | 63.80% | 26.64% |
| LeaseandManagementofProperty | 38,061,456.97 | 4.44% | 49,680,246.62 | 4.92% | -23.39% |
| Trade | 312,992,303.03 | 31.03% | -100.00% | ||
| Other | 3,155,587.01 | 0.37% | 2,547,743.87 | 0.25% | 23.86% |
| OnProducts | |||||
| Polarizersheet | 799,129,105.40 | 93.32% | 629,072,823.54 | 62.35% | 27.03% |
| LeaseandManagementofProperty | 38,061,456.97 | 4.44% | 49,680,246.62 | 4.92% | -23.39% |
Textile
| Textile | 15,967,199.36 | 1.87% | 14,570,178.44 | 1.45% | 9.59% |
| Trade | 312,992,303.03 | 31.03% | -100.00% | ||
| Other | 3,155,587.01 | 0.37% | 2,547,743.87 | 0.25% | 23.86% |
| Area | |||||
| Domestic | 758,180,695.48 | 88.54% | 909,178,658.98 | 90.12% | -16.61% |
| Overseas | 98,132,653.26 | 11.46% | 99,684,636.52 | 9.88% | -1.56% |
(2)SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%
√Applicable□Notapplicable
InRMB
| Turnover | Operationcost | Grossprofitrate(%) | Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%) | Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%) | Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%) | |
| OnIndustry | ||||||
| Manufacturing | 815,096,304.76 | 748,420,330.05 | 8.18% | 26.64% | 18.04% | 6.69% |
| LeaseandManagementofProperty | 38,061,456.97 | 10,402,484.37 | 72.67% | -23.39% | -14.09% | -2.96% |
| Other | 3,155,587.01 | 2,085,489.19 | 33.91% | 23.86% | 0.61% | 15.27% |
| OnProducts | ||||||
| Polarizersheet | 799,129,105.40 | 735,064,148.97 | 8.02% | 27.03% | 18.45% | 6.67% |
| LeaseandManagementofProperty | 38,061,456.97 | 10,402,484.37 | 72.67% | -23.39% | -14.09% | -2.96% |
| Textile | 15,967,199.36 | 13,356,181.08 | 16.35% | 9.59% | -1.08% | 9.02% |
| Other | 3,155,587.01 | 2,085,489.19 | 33.91% | 23.86% | 0.61% | 33.91% |
| Area | ||||||
| Domestic | 758,180,695.48 | 679,938,882.95 | 10.32% | -16.61% | -19.31% | 3.00% |
| Overseas | 98,132,653.26 | 80,969,420.66 | 17.49% | -1.56% | -17.34% | 15.76% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestonyear’sscopeofperiod-end.
□Applicable√NotapplicableExplanationforayear-on–yearchangeofover30%
√Applicable□NotapplicableⅢ.AnalysisofNon-coreBusiness
√Applicable□Notapplicable
InRMB
Amount
| Amount | Proportionintotalprofit | Explanationofcause | Sustainable(yesorno) | |
| Investmentincome | 13,932,825.63 | -373.26% | Obtainingdividends，contractfeesandInterestincomeonstructureddepositsfromshareholdingenterprises | Havethesustainability |
| Gainsandlossesonchangesinfairvalue | 0.00 | 0.00% | ||
| Impairmentofassets | -35,474,634.93 | 950.35% | Mainlyfromthelossofinventorydepreciation | Havethesustainability |
| Non-operatingincome | 20,431.28 | -0.55% | Itistocollectfinesfromthirdparties(constructionpartyofLine7project)forviolatingregulations. | Notsustainable. |
| Non-operatingexpense | 106,410.77 | -2.85% | Itistopaybackstampdutyfrom2017to2019andlatepaymentfeeforenterpriseincometaxin2019. | Notsustainable. |
| Otherincome | 13,045,221.53 | -349.48% | Mainlyforgovernmentsubsidies. | Havethesustainability |
IV.Analysisofassetsandliabilities
1.Significantchangesinassetcomposition
InRMB
| EndofReportingperiod | Endofsameperiodoflastyear | Changeinpercentage(%) | Reasonforsignificantchange | ||
| Amount | Asapercentageoftotalassets(%) | Amount | Asapercentageoftotalassets(%) | ||
Monetaryfund
| Monetaryfund | 208,316,334.46 | 4.65% | 419,227,198.60 | 9.56% | -4.91% | Thedecreaseinmonetaryfundsismainlyduetheconstructionexpenditureofline7duringthereportingperiod |
| Accountsreceivable | 437,419,876.54 | 9.77% | 497,053,241.57 | 11.34% | -1.57% | |
| Inventories | 465,530,597.15 | 10.40% | 515,163,535.57 | 11.75% | -1.35% | |
| RealestateInvestment | 110,981,279.05 | 2.48% | 116,195,160.90 | 2.65% | -0.17% | |
| Long-termequityinvestment | 150,344,313.44 | 3.36% | 163,733,127.58 | 3.73% | -0.37% | |
| Fixedassets | 850,896,074.15 | 19.01% | 934,236,253.12 | 21.31% | -2.30% | |
| Constructioninprocess | 955,248,196.39 | 21.34% | 94,993,015.59 | 2.17% | 19.17% | Duringthereportingperiod,theinvestmentintheconstructionofpolaroidline7increasesthetotalamountofprojectsunderconstruction |
| Short-termloans | 0.00% | 50,837,730.76 | 1.16% | -1.16% | ||
| Long-termloans | 0.00% | 0.00 | 0.00% | 0.00% | ||
| Otherequityinstrumentinvestment | 251,031,389.11 | 5.61% | 242,767,132.26 | 5.54% | 0.07% |
2.AssetandLiabilitiesMeasuredbyFairValue
√Applicable□Notapplicable
InRMB
| Items | Amountatyearbeginning | Gain/lossonfairvaluechangeinthereportingperiod | Cumulativefairvaluechangerecordedintoequity | Impairmentprovisionsinthereportingperiod | Purchasedamountinthereportingperiod | Soldamountinthereportingperiod | Otherchanges | Amountatyearend |
| Financialassets |
Financialassetsmeasuredatfairvaluethroughprofitorloss(excludingderivativefinancialassets)
| Financialassetsmeasuredatfairvaluethroughprofitorloss(excludingderivativefinancialassets) | 830,000,000.00 | 51,000,000.00 | 779,000,000.00 | ||||
| OtherequityInstrumentInvestment | 248,781,946.73 | 2,249,442.38 | 251,031,389.11 | ||||
| Subtotaloffinancialassets | 1,078,781,946.73 | 2,249,442.38 | 51,000,000.00 | 1,030,031,389.11 | |||
| Total | 1,078,781,946.73 | 2,249,442.38 | 51,000,000.00 | 1,030,031,389.11 | |||
| FinancialLiability | 0.00 | 0.00 |
OtherchangesNone
Didgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?
□Yes√No
3.RestrictedassetrightsasoftheendofthisReportingPeriodAsofJune30,2020,othermonetaryfundsincludeL/CsecurityofRMB30,633,741.41,andthetotalassetswithrestrictedownershiporuserightsareRMB30,633,741.41.V.AnalysisoninvestmentStatus
1.General
□Applicable√Notapplicable
2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
□Applicable√Notapplicable
3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
□Applicable√Notapplicable
4.Financialassetsatfairvalue
√Applicable□Notapplicable
InRMB
Typeofassets
| Typeofassets | Initialinvestmentcost | Gain/lossonf\airvaluechangesinthereportingperiod | Accumulatedfairvaluechangesrecordedinequity | Purchasedinthereportingperiod | Soldinthereportingperiod | Accumulatedreturnoninvestment | Endingamount | Fundingsource |
| Stock | 8,940,598.31 | -122,232.17 | 0.00 | 0.00 | 8,818,366.14 | Selffunds | ||
| Other | 2,559,856.26 | 9,756,083.35 | 12,315,939.61 | Selffunds | ||||
| Other | 2,600,000.00 | 149,869,200.00 | 152,469,200.00 | Selffunds | ||||
| Other | 160,000.00 | 7,314,900.00 | 7,474,900.00 | Selffunds | ||||
| Other | 524,000.00 | 1,703,903.00 | 2,227,903.00 | Selffunds | ||||
| Other | 14,831,681.50 | -14,831,681.50 | 0.00 | Selffunds | ||||
| Other | 16,800,000.00 | -16,800,000.00 | 0.00 | Selffunds | ||||
| Other | 4,243,705.44 | 21,516,380.83 | 25,760,086.27 | Selffunds | ||||
| Other | 1,500,000.00 | 11,964,994.09 | 13,464,994.09 | Selffunds | ||||
| Other | 28,500,000.00 | 0.00 | 28,500,000.00 | Selffunds | ||||
| Total | 80,659,841.51 | 0.00 | 170,371,547.60 | 0.00 | 0.00 | 0.00 | 251,031,389.11 | -- |
5.InvestmentofFinancialAsset
（1）Securitiesinvestment
□Applicable√NotapplicableTherewasnoinvestmentinsecuritiesbytheCompanyintheReportingperiod.
（2）InvestmentinDerivatives
□Applicable√NotapplicableTheCompanyhadnoinvestmentinderivativesinthereportingperiod.VI.SalesofmajorassetsandequityI.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.II.Salesofmajorequity
□Applicable√NotapplicableⅦ.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies
√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany
InRMB
Company
name
| Companyname | Type | Mainbusiness | Registeredcapital | Totalassets | Netassets | Turnover | Operatingprofit | NetProfit |
| ShenzhenLisiIndustrialCo.,Ltd. | Subsidiary | DomesticTrade,Propertymanagement | 2,360,000.00 | 38,197,364.32 | 31,974,765.68 | 2,986,022.42 | 387,855.75 | 368,620.50 |
| ShenzhenHuaqiangHotel | Subsidiary | Accommodation,businesscenter; | 10,005,300.0 | 32,597,332.09 | 27,056,601.96 | 3,337,078.19 | 338,661.01 | 282,103.14 |
| ShenfangPropertyManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,600,400.00 | 10,792,806.87 | 4,154,407.77 | 6,431,369.72 | 302,103.92 | 219,860.87 |
ShenzhenBeautyCenturyGarmentCo.,Ltd.
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Subsidiary | Productionoffullyelectronicjacquardknittingwholeshape | 13,000,000 | 30,039,329.67 | 16,922,358.45 | 15,998,728.16 | 595,066.70 | 595,066.70 |
| ShenzhenShengboOpotoelectricTechnologyCo.,Ltd | Subsidiary | Productionandsalesofpolarizer | 583,333,333 | 3,201,329,970.96 | 2,777,859,994.40 | 802,362,703.39 | -28,227,720.23 | -28,210,564.14 |
| ShenzhenShenfangImport&exportCo.,Ltd. | Subsidiary | Operatingimportandexportbusiness | 5,000,000.0 | 29,006,615.15 | 8,954,058.39 | 0.00 | -640,193.00 | -706,797.68 |
| Shengtou（HK）Co.,Ltd. | Subsidiary | Salesofpolarizer | HKD10,000 | 10,776,989.82 | 6,411,664.71 | 2,685,563.66 | 105,552.40 | 105,552.40 |
Subsidiariesobtainedordisposedinthereportingperiod
□Applicable√NotapplicableVIII．StructuredvehiclecontrolledbytheCompany
□Applicable√Notapplicable
IX.PredictionofbusinessperformanceforJanuary-September2020
Estimationofaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationofreason.
□Applicable√Notapplicable
X.RisksfacingtheCompanyandcountermeasures
1.MacroeconomicriskInthesecondhalfof2020,Chinawillstilladheretotheprincipleandpolicyof"strivingforprogresswhilemaintainingstability".AlthoughtheregulardataofcurrentnationalstatisticsshowthatChinahasmadegreatachievementsinpreventingandcontrollingCOVID-19,therearesomepositivesignalsintheeconomicsituation,andthetrendofeconomicstabilityandlong-termimprovementhasnotchanged,theeconomicdifficultiesshall
notbeignored.UndertheuncertaindevelopmentofSino-USrelations,thescienceandtechnologycompetitionbetweencountriesisverylikelytofacelong-termandarduouschallenge.Asanimportantpartoftheelectronicinformationindustry,theindustryinwhichthecompanyisengagedinissubjecttothepossibilitythatunpredictablefluctuationsinmacro-economywillcauseriskstothecompany'sperformance.
Countermeasures:Thecompanywillpaycloseattentiontotheinternationaleconomicsituation,studynationalpoliciesandindustrytrends,strengthenthetrackingandanalysisofmajorindustryinformation,andgraspthedevelopmentandchangetrendsoftheindustryinatimelymanner.Meanwhile,itwillcontinuouslyoptimizetheproductstructure,improvethemarketdevelopmentability,stimulatethevitalityofenterprisedevelopment,strengtheninternalmanagement,controloperationalrisksandensurethesteadydevelopmentofthecompany.
2.Marketrisk
PolarizerindustryisanimportantpartofChina'sfuturemanufacturingdevelopment.Thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologiesarechangingeveryday.Chinesetechnologyenterprisesarefacingtheinstabilityofglobalsupplychain,whichdeterminesthattheywillrelymoreondomesticindependentR&Dandproductioninthefuture,andthelocalizationofpolarizerproductsanddomesticsubstitutionofrawmaterialswillalsoaccelerate.Inaddition,withthegradualmassproductionofthe10.5
th
and
th
genarationlineandthecurrentlayoutadjustmentofthepolarizerindustry,thecompetitionfacedbythecompanymaybecomemoreandmorefierce.Ifthecompany'stechnologyandproductsfailtomeettheneedsoftheapplicationfieldintime,thewidepolarizerproductsandapplicationswillfallshortofexpectations,orthemarketcompetitionwillintensify,resultinginthepricedropofdisplayproductsandtheupwardtransmissionofpricereductionpressuretothepolarizermarket,whichwillhaveanadverseimpactonthecompany.
Countermeasures:Facingthecomplexmarketenvironment,ontheonehand,thecompanyhascomprehensivelybuilttheLine7projectasplanned,activelypromotedtheintroductionofnewproductclients,improvedproductbargainingpower,andstabilizedcustomerconfidence;Ontheotherhand,itkeepsclosecommunicationwithcustomersatalllevels,payscloseattentiontoproductdemandtrends,tapsmarketpotential,increasesmarketshare,continuouslyimprovesproductionlineyieldandutilization,enhancescorecompetitivenessanddealswithmarketrisks.
3.Riskofrawmaterial
Thecorepatentsofpolarizerterminalmaterialshavehightechnicalbarriersandarebasicallymonopolizedbyforeignmanufacturers.Thus,patentsarethemainreasonforlimitingthelocalizationofrawmaterials.Currently,thekeyrawmaterialsformanufacturingpolarizers,PVAfilmandTACfilm,arebasicallymonopolizedbyJapanesecompaniesandtheproductionlineandproductiontechnologyofupstreamsupportingrawmaterialsareconstrainedbytheJapaneseside.Comparedwiththeinternationalmanufacturer'scompleteindustrialchainmodelfromupstreamrawmaterialstopolarizerstodisplaypanels,theCompanydoesnothavethecorrespondingcompleteindustrialsupporttoplaytheroleinindustrialintegrationwhilethepriceofmajormembranematerialsisaffectedbythesupplier'sproductioncapacity,marketdemandandtheyenexchangerate,whichinfluencestheunitcostoftheCompany'sproducts.
Countermeasures:Thecompanywillcontinuetooptimizethesupplychainsystem,improvethebargainingpowerwithsuppliers,increasetheR&Dofindependentintellectualpropertyrights,promotetheimportoflow-costrawmaterials,activelyexploretheimportsubstitutionofrawmaterials,improvetheutilizationandmaintainalowlevelofproductionlossrate,maintainproductionstabilityandcontinuity,andreduceproductproductioncosts;Ifnecessary,thecompanycanchooseexchangeratewealthmanagementproductssuchasforwardforeignexchangeandforeignexchangeoptionstoavoidexcessiveexchangelossescausedbysharpexchangeratefluctuations.
4.ImpactriskofCOVID-19
SinceJanuary2020,COVID-19hasbrokenoutworld.AlthoughtheepidemicpreventionandcontrolinChinaisimproving,therearestilluncertaintiesintheglobalepidemicandepidemicpreventionandcontrol.Firstly,iftheoverseasepidemicsituationcannotbeeffectivelycontrolled,itmayhaveanimpactonthecompany'srawmaterialimport,producttradeandthedissolutionandliquidationofoverseasgarmentprocessingenterprises;Secondly,affectedbytheepidemicsituation,theinstallationanddebuggingoftheequipmentguidedbythetechnicalsupportpersonnelfromJapanofLine7projectcannotbecarriedoutasplanned.
Countermeasures:Ontheonehand,thecompanywillpromoteitsnormalproductionandoperationwhileensuringthehealthofemployees,strengthentheupstreamrawmaterialsupplyandthedownstreamcustomerdemandtracking,ensurethestabledevelopmentofproductionandoperation,andminimizetheadverseeffectsoftheepidemicasmuchaspossible.Ontheotherhand,itwillactivelycommunicatewithgovernmentdepartmentsabouttheentryapplicationofJapanesetechnicians.IfJapanesetechnicianscannotprovideon-siteguidance,itwillconsideradoptingonlineanddocumentcommunicationtoreceivetechnicalguidance.
V.ImportantEvents
I.AnnualGeneralMeetingandExtraordinaryShareholders’MeetingsintheReportingPeriod
1.AnnualGeneralMeeting
Meeting
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| TheFirstprovisionalGeneralMeetingof2020 | ProvisionalGeneralMeeting | 49.17% | January16,2020 | January17,2020 | AnnouncementNo.:2020-01www.cninfo.com.cn |
| TheSecondprovisionalGeneralMeetingof2020 | ProvisionalGeneralMeeting | 49.13% | April3,2020 | April7,2020 | AnnouncementNo.:2020-22www.cninfo.com.cn |
| AnnualGeneralMeetingof2019 | AnnualGeneralMeeting | 49.14% | June29,2020 | June30,2020 | AnnouncementNo.:2020-32www.cninfo.com.cn |
2.PreferredstockholdersrestoredvotingrightstorequesttoconveneProvisionalShareholders’Meeting.
□Applicable√Notapplicable
II.ProposalforprofitdistributionandconvertingcapitalReserveintoshareactualforthereportingperiod
□Applicable√Notapplicable
Forthereportingperiod,theCompanyplansnottodistributecashdividendsorbonussharesorconvertcapitalreserveintosharecapital.III.Thefulfilledcommitmentsinthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebythecompany,shareholder,actualcontroller,acquirer,director,supervisor,seniormanagementpersonnelandotherrelatedparities.
√Applicable□Notapplicable
| Commitment | Commitmentmaker | Type | Contents | Timeofmakingcommitmen | Periodofcommitment | Fulfillment |
t
| t | ||||||
| Commitmentonsharereform | ShenzhenInvestmentHoldingsCo.,Ltd. | Sharereductioncommitment | AsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldiscloseanannouncementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange. | August4,2006 | Sustainedandeffective | UnderFulfillment |
| Commitmentintheacquisitionreportorthereportonequitychanges | ||||||
| Commitmentmadeupontheassetsreplacement | ||||||
| Commitmentsmadeuponissuance | ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition, | ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissued | October9,2009 | Sustainedandeffective | UnderFulfillment |
relatedtransactionandcapitaloccupation
| relatedtransactionandcapitaloccupation | non-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlynecessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiaries |
undercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority.
| undercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority. | |||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | Thecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetition | July14,2012 | Sustainedandeffective | UnderFulfillment |
withShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile.
| withShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile. | ||||||
| Equityincentivecommitment | ShenzhenTextile(Holdings)Co.,Ltd. | Othercommitment | 1.Thecompanyundertakesnottoprovideloans,loanguarantees,andanyotherformsoffinancialassistancetotheincentiveobjectsforobtainingtherestrictedstocksintheincentiveplan;2.ThecompanyundertakesthatthereisnocircumstancethatthestockincentiveshallbeprohibitedasstipulatedintheprovisionsofArticle7ofthe“MeasuresfortheManagementofStockIncentivesofListedCompanies”. | November27,2017 | December27,2021 | UnderFulfillment |
| Othercommitmentsmadetominority |
shareholders
| shareholders | |
| Executedtimelyornot? | Yes |
| Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstageoftheworkingplan | Notapplicable |
IV.ParticularsaboutengagementanddisengagementofCPAsfirmWhetherthesemi-annualfinancialreporthadbeenaudited?
□Yes√Not
Thesemi-annualreportwasnotaudited.V.Explanationsgivenbyboardofdirectorsandsupervisoryboardregarding“Modifiedauditor’s”IssuedbyCPAsfirmforthereportingperiod
□Applicable√NotapplicableVI.ExplanationsgivenbyBoardofDirectorsregarding“Modifiedauditor’sReport”Issuedforlastyear
□Applicable√NotapplicableVII.Bankruptcyandrestructuring
□Applicable√NotapplicableNosuchcasesinthereportingperiod.VIII.LegalmattersSignificantlawsuitsorarbitrations
√Applicable□Notapplicable
| Basicconditionsoflitigation(arbitration) | Amountinvolved（Tenthousandyuan） | Formingofthepredicteddebt | Litigation(arbitration)progress | Litigation(arbitration)judgementresultandinfluence | Litigation(arbitration)judgementexecutioncondition | Dateofdisclosure | Indexofdisclosure |
| Fordetailsofthemattersconcerningarbitrationand | 24,478.38 | No | Asofthedisclosuredateofthisreport,thecompanyhas | Inviewofthecompany'sinvolvementinthisarbitration | Asofthedisclosuredateofthisreport,due | March11,2020 | Fordetails,pleaserefertotheAnnouncement |
compensationfortheperformancecommitmentsofsubsidiariesin2019,pleasereferto"XVIII.MajorMattersofSubsidiariesoftheCompany"in"SectionVImportantMatters"ofthisreport.
| compensationfortheperformancecommitmentsofsubsidiariesin2019,pleasereferto"XVIII.MajorMattersofSubsidiariesoftheCompany"in"SectionVImportantMatters"ofthisreport. | entrustedalawyertosubmitevidenceandmaterialsofthisarbitrationtothearbitrationtribunalinaccordancewiththearbitrationprocedures,andsubmittedaletterofinvitationfortheapplicanttoclarifythearbitrationrequestandarrangethehearing.However,duetotheepidemic,thearbitrationhasnotyetbeenheld,andthetimeofthecourtsessionhasyettobescheduled. | andtheuncertaintyofthearbitrationresults,JinjiangGroup'sunfulfilledcommitmenttothecompany'ssubsidiarySAPOPhotoelectricin2019isuncertain. | totheepidemic,thearbitrationhasnotyetbeenheld,andthetimeofthehearinghasyettobescheduled. | onCompanyInvolvedinArbitration(No.2020-07)andProgressAnnouncementonCompanyInvolvedinArbitration(No.2020-21)disclosedbycnInfo(http://www.cninfo.com.cn)onMarch11,2020andMarch28,2020respectively. |
Otherlegalmatters
□Applicable√NotapplicableIX.Doubt6sfrommedia
□Applicable√NotapplicableTheCompanyhadnoissuesaboutwhichmediagenerallyraiseddoubtsinthereportingperiod.X.Punishmentsandrectifications
□Applicable√NotapplicableNosuchcasesinthereportingperiod.XI.CreditconditionsoftheCompanyaswellasitsControllingshareholderandactualController
□Applicable√NotapplicableNosuchcasesinthereportingperiod.XII.Equityincentiveplans,employeestockownershipplansorotherincentivemeasuresforemployees
√Applicable□Notapplicable(I)FormulationofRestrictedStockIncentivePlan
OnNovember27,2017,theProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanwasexaminedandapprovedinthe7
th
boardmeetingofthecompany’s7
thsessionboardofdirectors,andrelatedproposalsagreedtofulfilltherelevantproceduresandrelatedproposalsagreedtofulfilltherelevantprocedures
OnDecember11,2017,theSASACagreedinprincipletoimplementtherestrictedstockincentiveplan.OnDecember14,2017,thecompanyheldthethirdextraordinaryshareholders'generalmeetingin2017,whichreviewedandapprovedtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanandotherissues.(II)InformationongrantingtherestrictedstockOnDecember14,2017,thecompanyheldthe8thmeetingofthe7thBoardofDirectors,whichreviewedandapprovedthe“ProposalonAdjustingtheListofIncentiveObjectsandGrantingQuantityofthe2017RestrictedStockIncentivePlan”andthe“ProposalonGrantingtheRestrictedStockstoIncentiveObjects”.Therestrictedsharesactuallygrantedbythisstockincentiveplantotaled4,752,300shares,and119incentiveobjectsweregranted,withthegrantingpricewas5.73yuanpershare.OnDecember27,2017,thecompany’srestrictedstockcompletedthegrantregistrationformalitiesatChinaSecuritiesDepositoryandClearingCorporationShenzhenBranch.(III)Progressofrestrictedstock
1.Regardingtherepurchaseandcancellationofsomerestrictedstocks,i.e.therepurchaseandcancellationofrestrictedstocksinPhaseIIandheldby3originalincentiveobjects
OnJune4,2019,theCompanyconvenedthe19thmeetingofthe7thboardofdirectorsandthe13thmeetingofthe7thboardofsupervisorstoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShare,agreeingtorepurchaseandcancelthe1,877,720restrictedsharesheldbytheCompanyfor116incentiveobjectsatarepurchasepriceof5.92yuan/share,whichdidnotmeettheconditionsforliftingtherestrictiononsaleinphaseI.Thebuybackpriceof5.73yuanpersharewasusedtocancel58,000restrictedsharesheldby3originalincentivesubjectswholeftthecompanyforpersonalreasons,andatotalof1,935,720restrictedshareswererepurchasedandcanceled.
OnJune26,2019,theCompanyheldits2018annualshareholders'meetingtoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShares,agreeingtorepurchaseandcancelthe1,877,720restrictedsharesheldby116incentiveobjectsatarepurchasepriceof5.92yuanpershareinphaseIand58,000restrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare,andatotalof1,935,720restrictedshareswererepurchasedandcanceled.
OnSeptember12,2019,theabove-mentionedrestrictedstockcompaniescompletedtherepurchaseandcancellationproceduresinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.
2.Regardingtherepurchaseandcancellationofsomerestrictedstocks,i.e.therepurchaseandcancellationofrestrictedstocksheldby3originalincentiveobjects
OnDecember30,2019,theCompanyheldthe25thmeetingofthe7thboardofdirectorsandthe17thmeetingofthe7thboardofsupervisorstoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShares,agreeingthatthecompanywillrepurchaseandcancel69,900restrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare.
OnJanuary16,2020,theCompanyconvenedthefirstextraordinaryshareholders'meetingin2020toconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedSharesandagreedto
repurchaseandcancel69,900sharesofrestrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare.OnJanuary17,2020,theCompany'sregisteredcapitalwillbereducedduetotherepurchaseandcancellationofsomerestrictedstocks.AccordingtotheCompanyLawandotherrelevantlawsandregulations,theCompanydisclosestheAnnouncementonReductionofCapitalforRepurchaseandCancellationofSomeRestrictedStocks(No2020-02),andcreditorsareherebynotifiedthattheyhavetherighttorequiretheCompanytorepaydebtsorprovidecorrespondingguaranteeswithin45daysfromthedateofthisannouncement.Ifthecreditorfailstoexercisetheaboverightswithintheprescribedtimelimit,therepurchaseandcancellationwillcontinuetobeimplementedaccordingtolegalprocedures.
3.AbouttherepurchaseandcancellationofsomerestrictedstocksnamelytherepurchaseandcancellationofphaseIIrestrictedstocksandtherestrictedstocksheldbythethreeoriginalincentiveobjectsOnMarch12,2020,theCompanyconvenedthe27thmeetingofthe7thBoardofDirectorsandthe19thmeetingofthe7thBoardofSupervisors,inwhichitreviewedandapprovedthe"ProposalontheRepurchaseofSomeRestrictedStocks",agreedthattheCompanybuysbackandcancelstherestrictedstockofthePhaseII-thatdoesnotmeettheconditionsforliftingthesalesrestrictioninthesecondphaseof1,313,340sharesheldby110incentiveobjectswitharepurchasepriceofRMB5.73persharepluswiththeinterestduringthesameperiodthatthebank'sdeposithas,andbuysbackandcancelsthe120,000restrictedstocks-grantedbuthavenotbeenliftedforsale-heldbythethreeoriginalincentivesubjectswholeftforpersonalreasonswitharepurchasepriceofRMB
5.73pershare,thusatotalof1,433,340restrictedstocksshallberepurchasedandcancelled.
OnApril3,2020,theCompanyheldthesecondextraordinaryshareholders‘generalmeetingof2020,inwhichitreviewedandapprovedthe"ProposalontheRepurchaseofSomeRestrictedStocks",agreedthattheCompanybuysbackandcancelstherestrictedstock-thatdoesnotmeettheconditionsforliftingthesalesrestrictioninthesecondphaseof1,313,340sharesheldby110incentiveobjectswitharepurchasepriceofRMB
6.01pershare,andbuysbackandcancelsthe120,000restrictedstocksheldbythethreeoriginalincentivesubjectswholeftforpersonalreasonswitharepurchasepriceofRMB5.73pershare,thusatotalof1,433,340restrictedstocksshallberepurchasedandcancelled.Theafore-mentionedrestrictedstockshavenotyetcompletedtherepurchaseandcancellationproceduresattheChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranch.
OnApril7,2020,becausetherepurchaseandcancellationofsomerestrictedstockswillreducetheregisteredcapitalofthecompany,accordingtotheCompanyLawandotherrelevantlawsandregulations,thecompanydisclosedtheAnnouncementonCapitalReductionofRepurchaseandCancellationofSomeRestrictedStocks(No.2020-23),andherebynotifiedcreditorsthatcreditorshavetherighttorequirethecompanytopayoffdebtsorprovidecorrespondingguaranteeswithin45daysfromthedateofthisannouncement.Ifthecreditorfailstoexercisetheaboverightswithintheprescribedtimelimit,therepurchaseandcancellationwillcontinuetobeimplementedaccordingtolegalprocedures.
4.Regardingtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationof
restrictedstocksheldby6originalincentiveobjectsOnJune8,2020,thecompanyheldthe30thmeetingofthe7thBoardofDirectorsandthe21stmeetingofthe7thBoardofSupervisors,andreviewedandapprovedtheProposalonRepurchaseandCancellationofSomeRestrictedStocks,aimingtorepurchaseandcancelthe57,150restrictedstocksheldbythefiveoriginalincentiveobjectswhoresignedforpersonalreasons,witharepurchasepriceof5.73yuan/share;Itisproposedtorepurchaseandcancel5,760restrictedstocksheldby1originalincentiveobjectwhoresignedduetoretirement,withtherepurchasepriceof6.14yuan/share.Tosumup,atotalof62,910restrictedstockswererepurchasedandcancelled.
OnJune29,2020,thecompanyheldthe2019AnnualGeneralMeetingofShareholderstoreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,agreeingthatthecompanywillrepurchaseandcancel57,150restrictedstocksheldby5originalincentiveobjectswhoresignedforpersonalreasonsatarepurchasepriceof5.73yuan/share,andagreethatthecompanywillrepurchaseandcancel5,760restrictedstocksheldby1originalincentiveobjectwhoresignedduetoretirementatarepurchasepriceof6.14yuan/share.
OnJune30,2020,becausetherepurchaseandcancellationofsomerestrictedstockswillreducetheregisteredcapitalofthecompany,accordingtotheCompanyLawandotherrelevantlawsandregulations,thecompanydisclosedtheAnnouncementonCapitalReductionofRepurchaseandCancellationofSomeRestrictedStocks(No.2020-30),andherebynotifiedcreditorsthatcreditorshavetherighttorequirethecompanytopayoffdebtsorprovidecorrespondingguaranteeswithin45daysfromthedateofthisannouncement.Ifthecreditorfailstoexercisetheaboverightswithintheprescribedtimelimit,therepurchaseandcancellationwillcontinuetobeimplementedaccordingtolegalprocedures.XIII.Materialrelatedtransactions
1.Relatedtransactionsinconnectionwithdailyoperation
√Applicable□Notapplicable
Relate
dparties
| Relatedparties | Relationship | Typeoftrade | Subjectsoftherelatedtransactions | Principleofpricingtherelatedtransactions | Priceoftrade | Amountoftrade(tenthousand) | Ratioinsimilartrades | Tradinglimitapproved(tenthousand) | Whetherovertheapprovedlimitedornot(Y/N) | Wayofpayment | Marketpriceofsimilartradeavailable | Dateofdisclosure | Indexofinformationdisclosure |
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JingjiangGroup'sshareholdingcompany | Purchaseofproductsfromrelatedparties | Sellingpolarizingfilm | MarketPrinciple | Agreementprice | 10,140.56 | 13.00% | 14,937 | No | Transfer | 10140.56 | March14,2020 | http://www.cninfo.com.cnOnMarch14，2020(AnnouncementNo.：2020-15) |
| Kunsh | Jingjia | Sale | Purch | Marke | Agree | 7,843 | 8.80 | 26,744 | No | Tran | 7843 | Marc | http://www.cni |
anZhiqimeiMaterialsTechnologyCo.,Ltd.
| anZhiqimeiMaterialsTechnologyCo.,Ltd. | ngGroup'sshareholdingcompany | ofgoodstorelatedparties | aseofopticalfilmproductsandrelevantmaterials | tPrinciple | mentprice | .22 | % | sfer | .22 | h14,2020 | nfo.com.cnOnMarch14，2020(AnnouncementNo.：2020-15) | ||
| Total | -- | -- | 17,983.78 | -- | 41,681 | -- | -- | -- | -- | -- | |||
| Detailsofanysalesreturnofalargeamount | Notapplicable | ||||||||||||
| Givetheactualsituationinthereportperiodwhereaforecasthadbeenmadeforthetotalamountsofroutinerelated-partytransactionsbytypetooccurinthecurrentperiod(ifany) | Notapplicable | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | Notapplicable | ||||||||||||
2.Related-partytransactionsarisingfromassetacquisitionorsold
□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod.
3.Related-partytransitionswithjointinvestments
□Applicable√NotapplicableNomainrelatedtransactionsofjointinvestmentoutsidefortheCompanyinreportingperiod.
4.Creditsandliabilitieswithrelatedparties
√Applicable□NotapplicableWasthereanynon-operatingcreditorliabilitywithanyrelatedparty?
√Yes□NoDuefromrelatedparties
| Related | Relations | Causes | Does | Opening | Newly | Amount | Interest | Interest | Ending |
parties
| parties | hip | offormation | thereexistnon-operationcapitaloccupancy? | balance(tenthousand) | increasedamountinthereportingperiod(tenthousand) | recoveredinthereportingperiod(tenthousand) | rate | inthereportingperiod(tenthousand) | balance(tenthousand) |
| ShenzhenDailishiUnderwearCo.,Ltd. | Sharingcompany | Investmentdividend | No | 40.48 | 50 | 90.48 | 0 | ||
| AnhuiHuapengTextileCo.,Ltd. | Jointventure | Investmentdividend | No | 180 | 180 | ||||
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JinjiangGroup'sshareholdingcompany | Saleproducts | No | 5,389.38 | 7,843.22 | 7,600.23 | 5,632.37 | ||
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | TheChairmanoftheCompanywasViceChairmanofthecompany | Saleproducts | No | 73.3 | 80.09 | 104.08 | 49.31 | ||
| Influenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition | Duringthereportingperiod,thecreditor'srightsofrelatedpartieswereformedbynormalproduction,operationandinvestmentactivities.Therewasnofinancialriskcausedbytheoccupationoffundsbyrelatedparties,norwasthereanydamagetothecompany'sinterestscausedbyunfairpricesofrelatedtransactions. | ||||||||
Duetorelatedparties
| Relatedparties | Relationship | Causesofformation | Openingbalance(tenthousand) | Amountnewlyincreasedinthereportingperiod(tenthousand) | Amountrepaidinthereportingperiod(tenthousand) | Interestrate | Interestinthereportingperiod(tenthousand) | Endingbalance(tenthousand) |
ShenzhenXinfangKnittingCo.,Ltd.
| ShenzhenXinfangKnittingCo.,Ltd. | Sharingcompany | Currentamount | 24.48 | 24.48 | |||
| ShenzhenChanglianfaPrinting&dyeingCo.,Ltd. | Sharingcompany | Currentamount | 158.09 | 158.09 | |||
| YehuiInternationalCo.,Ltd. | Sharingcompany | Currentamount | 121.67 | 0.75 | 122.42 | ||
| SAPO（HK）Co.,Ltd. | Sharingcompany | Currentamount | 31.5 | 31.5 | |||
| ShenzhenGuanhuaPringing&DyeingCo.,Ltd. | Sharingcompany | Currentamount | 381.11 | 381.11 | |||
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JinjiangGroup'sshareholdingcompany | Purchase | 5,624.5 | 10,140.56 | 9,673.66 | 6,091.4 | |
| Influenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition | Duringthereportingperiod,thedebtsofrelatedpartywascausedbynormalproductionandoperationactivities,andtherewasnoactdamagingtheinterestsoftheCompanyanditsshareholders. | ||||||
5.Othersignificantrelated-partytransactions
□Applicable√Notapplicable
Nosuchcasesinthereportingperiod.XIV.Particularsaboutthenon-operatingoccupationoffundsbytheControllingshareholderandother
relatedpartiesoftheCompany
□Applicable√NotapplicableThecompanywasnotinvolvedinthenon-operatingoccupationoffundsbythecontrollingshareholderandotherrelatedpartiesduringthereportingperiod.
XIV.Significantcontractsandexecution
1.Entrustments,contractingandleasing
(1)Trusteeship
□Applicable√NotapplicableNotrusteeship,contractorleasingfortheCompanyinreportingperiod.
(2)Contract
□Applicable√NotapplicableNoanycontractfortheCompanyinthereportingperiod.
(3)Lease
□Applicable√NotapplicableNoanyleasefortheCompanyinthereportingperiod..
2.SignificantGuarantees
√Applicable□Notapplicable
（1）Guarantees
InRMB10,000
GuaranteeoftheCompanyforthecontrollingsubsidiaries(Excludecontrolledsubsidiaries)
| GuaranteeoftheCompanyforthecontrollingsubsidiaries(Excludecontrolledsubsidiaries) | ||||||||
| NameoftheCompany | Relevantdisclosuredate/No.oftheguaranteedamount | AmountofGuarantee | Dateofhappening(Dateofsigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) |
| Guaranteeofthecompanyforitssubsidiaries | ||||||||
| Nameofthecompanyguaranteed | Relatedannouncementdateandno. | Amountofguarantee | Dateofhappening(dateofsigningagreement) | Actuallyguaranteeamount | Guaranteetype | Guaranteeterm | Completeimplementationornot | Guaranteeforrelatedparty(yesorno) |
| ShenzhenShengboOptoelectroni | March18,2020 | 48,000 | 0 | Guaranteeingofjointliabilities | Twoyearsfromthe | No | No | |
cTechnologyCo.,Ltd.
| cTechnologyCo.,Ltd. | dateofexpirationoftheprincipaldebt | ||||||||
| Totalofguaranteeforsubsidiariesapprovedintheperiod(B1) | 48,000 | Totalofactualguaranteeforsubsidiariesintheperiod(B2) | 0 | ||||||
| Totalofguaranteeforsubsidiariesapprovedatperiod-end(B3) | 48,000 | Totalofactualguaranteeforsubsidiariesatperiod-end(B4) | 0 | ||||||
| Guaranteeofthesubsidiariesforthecontrollingsubsidiaries | |||||||||
| NameoftheCompanyguaranteed | Relevantdisclosuredate/No.oftheguaranteedamount | Amountofguarantee | Dateofhappening(Dateosigningagreement) | Actualmountofguarantee | Guaranteetype | Guaranteeterm | Completeimplementationornot | Guaranteeforassociatedparties(Yesorno) | |
| TheCompany’stotalguarantee(i.e.totalofthefirstthreemainitems) | |||||||||
| Totalguaranteequotaapprovedinthereportingperiod（A1+B1+C1） | 48,000 | Totalamountofguaranteeactuallyincurredinthereportingperiod（A2+B2+C2） | 0 | ||||||
| Totalguaranteequotaalreadyapprovedattheendofthereportingperiod（A3+B3+C3） | 48,000 | Totalbalanceoftheactualguaranteeattheendofthereportingperiod（A4+B4+C4） | 0 | ||||||
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4）% | 0.00% | ||||||||
| Including： | |||||||||
Descriptionoftheguaranteewithcomplexmethod
None
(2)Illegalexternalguarantee
□Applicable√NotapplicableNoIllegalexternalguaranteeinthereportperiod.
(3)SituationofEntrustedFinance
√Applicable□Notapplicable
InRMB
Specifictype
| Specifictype | Sourceoffundsforentrustedfinancialmanagement | TheOccurredAmountofEntrustedWealth-management | Unduebalance | Un-recoveredofoverdueamount |
| Bankfinancialproducts | Selffund | 86,500 | 77,900 | 0 |
| Total | 86,500 | 77,900 | 0 | |
Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal
√Applicable□Notapplicable
InRMB10,000
| NameofTrusteeOrganization(orTrusteeName) | TypeofTrusteeOrganization(orTrustee) | ProductType | Amount | CapitalSource | StartDate | ExpiryDate | FundsAllocation | MethodofRewardDetermination | ReferenceAnnualizedRateofReturn | ExpectedIncome(ifany) | Actualprofitandlossduringthereportingperiod | Theactualrecoveryofprofitandlossduringthereportingperiod | Amountofprovisionforimpairment(ifany) | Whetherpassedthestatutoryprocedure | Whetherthereisanyentrustedfinancialplaninthefuture | Summaryofeventsandrelatedsearchindex(ifany) |
| SPDBankCo.,ltd.FenghuangBuildingBranc | Bank | StructureDeposit | 28,000 | SelfFund | February5,2020 | August3,2020 | Bankfinancialproducts | Duepaymentatatime | 3.85% | 539 | 0 | Prematurity | Yes | Notapplicable |
h
| h | ||||||||||||||||
| SPDBankCo.,ltd.FenghuangBuildingBranch | Bank | StructureDeposit | 12,000 | SelfFund | March12,2020 | September14,2020 | Bankfinancialproducts | Duepaymentatatime | 3.85% | 233.57 | 0 | Prematurity | Yes | Notapplicable | ||
| Total | 40,000 | -- | -- | -- | -- | -- | -- | 772.57 | 0 | -- | -- | -- | -- | |||
Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment
□Applicable√Notapplicable
4.Othersignificantcontract
√Applicable□Notapplicable
| CompanyNameofthePartyMakingthecontract | CompanyNameoftheOtherPartyoftheContract | ContractObject | ContractSigningDate | BookValueoftheAssetsInvolvedbytheContract(RMB10,000)(IfAny) | AssessedValueoftheAssetsInvolvedbytheContract(RMB10,000) | AppraisalAgencyName(IfAny) | BaseDateofAssessment(ifany) | PricingPrinciple | TransactionPrice(RMB10,000) | WhetherARelatedTraction | ConnectionRelation | ExecutionConditionAsOfTheEndOfTheReportingPeriod | DateofDisclosure | DisclosureIndex |
| SAPOPhotoelectric | HangzhouJinjiangGroupCo.,Ltd.,KunshanZhiqimeiMaterialTechnologyCo.,Ltd.,JapanNitto | NittoDenkoprovidespolarizermanufacturingtechnologyandrelatedcorporation. | November6,2017 | No | Consideringtheformulationofmarketpriceandtechnicalserviceperiod,the | 86,900 | No | Withnoassociationrelationshipwit | Innormalperformance | November7,2017 | Http://www.cninfo.com.cn:(AnnouncementNo.:2017-53) |
DenkoCorporation
| DenkoCorporation | finaltransactionpriceisbasedonthecommercialnegotiationresultsofbothparties. | hthecompany | onNovember7,2017 |
XVI.Socialresponsibilities
1.MajorenvironmentalprotectionTheListedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmentalprotectiondepartmentYes
| Companyorsubsidiaryname | Mainpollutantandspecificpollutantname | Emissionway | Emissionportnumber | Emissionportdistributioncondition | Emissionconcentration(mg/Nm3) | Implementedpollutantemissionstandards | Totalemission | Verifiedtotalemission(Tons) | Excessiveemissioncondition |
| ShenzhenShengboOptoelectronicTechnologyCo.,Ltd. | Exhaustgas:totalnon-methanehydrocarbons | Altitudeemission | 2 | ThedischargeportislocatedontheeastsideoftheroofofBuildingNo.1 | <100mg/m3 | 120mg/m3 | <84t/a | 100.8t/a | No |
| ShenzhenShengboOptoelectronicTechnologyCo.,Ltd. | Effluents：COD | Openchanneldischargeaftertreatment | 1 | 厂Southeastsideofplantarea | <35mg/L | 40mg/L | <16.6t/a | 18.98/a | No |
Preventionandcontrolofpollutionfacilitiesconstructionandoperation
ThewastegastreatmentfacilityadoptedtheRTOwastegasregenerativeincinerationprocessofShengboOptoelectronic.whichcanfullymeettheemissionrequirementsofdischargegas.TheremovalrateoforganicwastegasVOCsreachedmorethan99%,Meanwhile,theequipmentadoptedtheimportedthermalstoragematerial,withtheheatstorageeffectreached90%,sothattheequipmentoperationhadlowenergyconsumption;afterRTOtreatment,theexhaustgasproducedbytheproductionprocesscanmeetthedischargestandard.SAPOPhotoelectricwastewatertreatmentfacilityhasimprovedFentonsystemintheearlystage.Atpresent,UASBanaerobic+aerobic+MBRmembrane+coagulationsedimentationwastewatertreatmentprocessisadopted.Theprocessischaracterizedbystrongimpactloadresistance,stablesystemoperation,lowenergyconsumption,lowmaintenanceandoperationcost,highautomationdegreeandgoodeffluenttreatmenteffect.Thewastewaterfromtheproductionprocesscanmeettheenvironmentalprotectionrequirementsafterbeingtreatedbywastewatertreatmentfacilities.
SituationofConstructionprojectenvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesTheCompanycompliedwithrelevantenvironmentalprotectionregulationsatsuchthreestagesasprojectdesign,constructionandoperationandobtainedenvironmentalprotectionapprovalsneededateachcorrespondingstageincludingEIAreport,EIAapproval,environmentalprotectionacceptancedecisionandemissionpermitamongothers.EmergencyPlanforEmergencyEnvironmentalIncidentsAccordingtotheactualsituationofthecompany,thepreparationoftheemergencyplanforemergencyenvironmentalincidentswascompleted,andanemergencyenvironmentalemergencyplanfilingapplication
EnvironmentalSelf-MonitoringProgramSurveillancedonesubjecttosurveillancerequirementsmadebythesurveillancestationandoperationneedsofallsystemsofSAPO，thespecificmonitoringprogramsareasfollows:organicexhaustgasis8timesperyear(2perquarter),wastewaterdischargeis4timesperyear(onceperquarter),boilerexhaustgasis2timesperyear(onceeverysixmonths),andcanteenfumeis2timesperyear(onceeverysixmonths),thenoiseattheplantboundaryis2timesperyear(onceeverysixmonths).
OtherEnvironmentalInformationThatShouldBeDisclosedNone
OtherEnvironmentalRelatedInformationNone
2.OverviewoftheannualtargetedpovertyalleviationThecompanyhasnoprecisesocialresponsibilityforpovertyalleviationintheperiodandbasnofollow-upplan
either.XVII.Othermaterialevents
√Applicable□Notapplicable
(I)Progressofpolarizerindustrializationprojectforultra-largeTV(Line7)
InordertomeetthecapitaldemandfortheconstructionofLine7project,the28thmeetingofthe7thBoardofDirectorsreviewedandapprovedtheProposalonSubsidiariesApplyingforMortgageLoansfromBanksandtheProposalonProvidingGuaranteeforSubsidiaries'MortgageLoans,andtheSecondExtraordinaryGeneralMeetingofShareholdersin2020reviewedandapprovedtheProposalonProvidingGuaranteeforSubsidiaries'MortgageLoans,andagreedthatShengboOptoelectronicsCo.,Ltd.,asubsidiary,willapplyforafixedassetloanofRMB800millionfromthesyndicateledbyShenzhenBranchofBankofCommunicationsCo.,Ltd.withsomeofitsself-heldproperties,withatermofnomorethan8years,andthespecifictermsandtermsaresubjecttotheactuallysignedloancontract;Itisagreedthatthecompanywillprovidejointliabilityguaranteefortheaboveloanmattersaccordingtotheshareholdingratioof60%,andwaivetheguaranteefeepayabletothecompany,andauthorizethelegalrepresentativeofthecompanyoritsauthorizedrepresentativetohandletheaboveguaranteemattersonbehalfofthecompanyandsigntheguaranteecontractandanyotherdocumentsrelatedtothisguarantee;ItisagreedthatthecompanyandJinjiangGroup,anotherguarantor,willmakeanagreementonissuesrelatedtojointliabilityguarantee.Fordetails,pleaserefertoAnnouncementNo.2020-18,2020-19and2020-22ofcninfo(http://www.cninfo.com.cn).Inordertomeettheneedsofdownstreampanelcustomers,improvetheoverallproductionefficiencyofLine7projectandenhancethecompetitivenessoftheenterprise,SAPOPhotoelectric,asubsidiary,increasesitsinvestmentby147.2millionyuantobuildoneRTPproductionlineand2RTSproductionlines,withitsownfundsandbankloans.Fordetails,pleaserefertoAnnouncementNo.2020-25ofCNInfo(http://www.cninfo.com.cn).
Asofthedisclosuredateofthisreport,theLine7projecthascompletedthecappingofthemainplantandthemanufacturingofextensionequipment.AffectedbytheCoronavirusepidemic,duetolaborshortages,insufficientsupplyofengineeringmaterialsandequipment,transportationrestrictions,etc.,theconstructionoftheLine7projectwasnotfullyresumeduntilmid-March2020.Thecompanyfurtherstrengthenedthemonitoringandmanagementofbudget,schedule,qualityandotheraspects,rearrangedtheconstructiontimenode,andiscurrentlycarryingoutthepurificationanddecorationengineeringconstructionandtheinstallationofextensionmachineequipment.ItisplannedtocompletethemainmachineequipmentdebugginginFebruary2021,andstartthetrialproduction.
Duringthereportingperiod,theCompanyhasprudentlydemonstratedthatitwillinvest147.2millionyuanintheconstructionof1RTPproductionlineand2RTSproductionlinesontheLine7project.Thesourceoffundsisitsownfundsandbankloans.Themainreasonsforthisincreaseininvestmentarefirsttomeettheneedsofdownstreampanelcustomersandenhancethedepthofcustomercooperation;second,tohelpimprovetheoverallproductionefficiencyoftheLine7project,simplifytheproductionprocess,andeffectivelyreduceproductioncosts;third,tofurtherimproveEnterprisecompetitivenessprovidesguaranteeforthesuccessfuloperationofLine7project.Fortheabovedetails,pleaserefertothe"AnnouncementontheIncreaseofInvestmentandConstructionProgressintheIndustrializationProjectofPolarizersforUltra-largeTVs(Line7)"byJuchaoInformationNetwork(http://www.cninfo.com.cn)onApril30,2020.(No.2020-25).
AsofJune30,2020,thetotalinvestmentcontractamountoftheLine7projectwas1,477.8032millionyuan,andtheactualpaid-ininvestmentwas1052.9322millionyuan(withraisedfundsof409.951millionyuan,anditsownfundsandgovernmentfundsof642.9812millionyuanused).（II）ProgressofRentingofGuanhuaBuilding
InordertofurtherrevitalizetheCompany'sexistingassets,concentrateresourcesonitsmainbusinessandstimulatethevitalityoftheenterprise,theProposalonTransferof50.16%EquityofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.wasdeliberatedandpassedatthe22ndmeetingofthe7thBoardofDirectorsandthe2ndExtraordinaryGeneralMeetingin2019.ItwasagreedthattheCompanywouldtransfer50.16%ofGuanhua
equityheldbytheCompanythroughpubliclistingatapriceofnotlessthan340,468,300yuaninShenzhenUnitedPropertyandShareRights,whichwasapprovedbythestate-ownedassetsmanagementdepartmentforfiling.However,duetomarketreasonsandchangesinrelevantconditions,aftercomprehensiveconsiderationbytheCompany,thesharesofGuanhuaarenotlistedonShenzhenUnitedPropertyandShareRights,andtheCompanywillchooseasuitabletimetolistwithinthevalidityperiodoftheunderlyingequityevaluationreport(August30,2020)accordingtomarketconditionsandincombinationwiththeactualoperationoftheCompany.Fordetails,pleaserefertotheAnnouncementof2019-55,2019-63and2019-71onthewebsiteofhttp://www.cninfo.com.cn.XVIII.Materialeventsofsubsidiaries
√Applicable□Notapplicable(I)Mattersconcerningthecompany'scompensationforarbitrationanditssubsidiaries'annualperformancecommitmentsin2019OnMarch9,2020,thecompanyreceivedtheNoticeofArbitration(No.452-2)fromShenzhenInternationalArbitrationCourtandtheApplicationforArbitrationsubmittedbyHangzhouJinjiangGroupCo.,Ltd.,whichistheapplicantofthisarbitrationwhilethecompanyistherespondent.HangzhouJinjiangGroupCo.,Ltd.submittedthefollowingarbitrationrequests:1.TherulingmadethefollowingchangestotheCooperationAgreement:(1)DeletetheoriginalArticle3.1oftheCooperationAgreementandtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled(2)DeletetheoriginalArticle6.4oftheCooperationAgreement,andtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled;2.Therespondentshallbearthearbitrationfeeofthecaseandtheactualexpensesofthearbitraltribunal.Theapplicantreservestherighttofurthermodifythearbitrationrequest.OnMarch9,2020,thecompanyreceivedtheNoticeofArbitration(No.452-2)fromShenzhenInternationalArbitrationCourtandtheApplicationforArbitrationsubmittedbyHangzhouJinjiangGroupCo.,Ltd.,whichistheapplicantofthisarbitrationwhilethecompanyistherespondent.HangzhouJinjiangGroupCo.,Ltd.submittedthefollowingarbitrationrequests:1.TherulingmadethefollowingchangestotheCooperationAgreement:(1)DeletetheoriginalArticle3.1oftheCooperationAgreementandtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled(2)DeletetheoriginalArticle6.4oftheCooperationAgreement,andtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled;2.Therespondentshallbearthearbitrationfeeofthecaseandtheactualexpensesofthearbitraltribunal.Theapplicantreservestherighttofurthermodifythearbitrationrequest.Fordetails,pleaserefertotheAnnouncementof2020-07onthewebsiteofhttp://www.cninfo.com.cn.OnMarch26,2020,thecompanyreceivedtheNoticeonExtendingtheTimeLimitAppointedbyArbitrators(2020SGZSNo.452-3)deliveredbyShenzhenInternationalArbitrationCourt.Duetothecomplexityofthedisputeandthespecialepidemicbackground,theapplicantneedsextratimetonegotiateandcommunicatetheproceduralmattersofthecasewiththerespondent,soitappliestoShenzhenInternationalArbitrationCourttoextendthetimelimitforappointingarbitratorsinthiscase.ShenzhenInternationalArbitrationCourtbelievesthattheapplicant'srequestisreasonable,andbothpartiesarerequestedtonotifyShenzhenInternationalArbitrationCourtinwritingofthearbitrator'sappointmentresultbeforeMarch30,2020.Therefore,thecompanyshallappointanarbitratorbeforeMarch30,2020insteadofwithin15daysafterreceivingthearbitrationnoticeonMarch9,2020,andnotifytheShenzhenInternationalArbitrationCourtoftheresultsinwriting.Fordetails,pleaserefertotheAnnouncementof2020-21onthewebsiteofhttp://www.cninfo.com.cn.
OnApril17,2020,thecompanyreceivedtheNoticeofArbitralTribunalComposition(2020SGZSNo.452-4)fromShenzhenInternationalArbitrationCourt.BothpartiestothearbitrationinformedShenzhenInternationalArbitrationCourtinwritingoftheresultsofarbitratorselectionaccordingtothearbitrationprocedurebeforeMarch30,2020,andappointed1arbitratorrespectivelyand1chiefarbitratortogether.OnApril16,2020,thearbitrationtribunalwasformedtohearthecase.Asofthedisclosuredateofthisreport,thecompanyhasentrustedalawyertosubmitevidenceandmaterialsofthisarbitrationtothearbitrationtribunalinaccordancewiththearbitrationprocedures,andsubmittedaletterofinvitationfortheapplicanttoclarifythearbitrationrequestandarrangethehearing.However,duetotheepidemic,thearbitrationhasnotyetbeenheld,andthetimeofthecourtsessionhasyettobescheduled.Inviewofthecompany'sinvolvementintheabovearbitrationandtheuncertaintyofthearbitrationresults,JinjiangGroup'sunfulfilledcommitmenttothecompany'ssubsidiarySAPOPhotoelectricin2019isuncertain.Thecompanywillcontinuetopayattentiontothefollow-upprogressofthisarbitrationandfulfillitsinformationdisclosureobligationsinatimelymanner.
(III)ProgressinsubsidiariesparticipatingintheestablishmentofindustrialfundsOnNovember16,2017,thecompany'scontrollingsubsidiarySAPOPhotoelectricsignedtheChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)AgreementwiththefundmanagerHuizhiInvestmentManagementCo.,Ltd,generalpartnerJinxinInvestmentCo.,Ltdandotherlimitedpartners,andco-sponsoredtheestablishmentofanindustrialfund,focusingontheopticalfilmindustrychainrelatedprojectsrelatedtothecompany'smainbusiness,withafundsizeof50millionyuan.SAPOPhotoelectric,asoneofthelimitedpartnersoftheindustrialfund,subscribedforacapitalcontributionof28.5millionyuan.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2017--55).
OnFebruary10,2018,ChangxingJunyingEquityInvestmentPartnershipcompletedtheindustrialandcommercialregistrationandcompletedtheprivateequityinvestmentfundregistrationonFebruary8,2018.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2018--05).AsofDecember31,2019,ChangxingJunyinghadaccumulated3investmentprojectswithatotalinvestmentof42millionyuan.
No
| No | Name | Investment | Fundcontribution（RMB10,000） |
| 1 | ShenzhenKaichuangShijiaTechnologyCo.,Ltd. | OpticalFilm | 1,400 |
| 2 | ShenzhenShenfuyuElectronicTechnologyCo.,Ltd. | OpticalFilm | 1,300 |
| 3 | ShenzhenHengbaoshunTechnologyDevelopmentCo.,Ltd. | OpticalFilm | 1,500 |
VI.ChangeofsharecapitalandshareholdingofPrincipalShareholders
I.Changesinsharecapital
1.Changesinsharecapital
Inshares
Beforethechange
| Beforethechange | Increase/decrease（+，-） | AftertheChange | |||||||
| Amount | Proportion | Shareallotment | Bonusshares | Capitalizationofcommonreservefund | Other | Subtotal | Quantity | Proportion | |
| 1.Shareswithconditionalsubscription | 2,893,830 | 0.57% | -1,275 | -1,275 | 2,892,555 | 0.57% | |||
| 1.State-ownedshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 2.State-ownedlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3.Otherdomesticshares | 2,893,830 | 0.57% | -1,275 | -1,275 | 2,892,555 | 0.57% | |||
| Incl：Domesticlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| DomesticNaturalPersonshares | 2,893,830 | 0.57% | -1,275 | -1,275 | 2,892,555 | 0.57% | |||
| 4.Foreignshare | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Incl：Foreignlegalpersonshare | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| ForeignNaturalPersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| II.Shareswithunconditionalsubscription | 506,444,599 | 99.43% | 1,275 | 1,275 | 506,445,874 | 99.74% | |||
| 1.CommonsharesinRMB | 457,016,599 | 89.73% | 1,275 | 1,275 | 457,017,874 | 90.00% | |||
2.Foreignsharesindomesticmarket
| 2.Foreignsharesindomesticmarket | 49,428,000 | 9.70% | 0 | 0 | 49,428,000 | 9.73% | |
| 3.Foreignsharesinforeignmarket | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| III.Totalofcapitalshares | 509,338,429 | 100.00% | 0 | 0 | 509,338,429 | 100.00% |
Reasonsforsharechanged
√Applicable□NotapplicableReasonsforthissharechange:ZhangXiaodong,theemployeesupervisorofthecompany,partiallyunlockedthecompany'ssharesthisyear,adding1,275shareswithunlimitedsalesconditions.ApprovalofChangeofShares
□Applicable√NotapplicableOwnershiptransferofsharechanges
□Applicable√NotapplicableProgressonanysharerepurchase:
√Applicable□Notapplicable
Progressonanysharerepurchase:
√Applicable□Notapplicable
Fordetails,pleaserefertoSectionV,"XII.ImplementationoftheCompany'sEquityIncentivePlan,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures(III)ProgressofRestrictedStock".Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
□Applicable√NotapplicableOtherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changeofshareswithlimitedsalescondition
InShares
| ShareholderName | InitialRestrictedShares | NumberofUnrestrictedSharesThisTerm | NumberofIncreasedRestrictedSharesThisTerm | RestrictedSharesintheEndoftheTerm | ReasonforRestrictedShares | DateofRestrictionRemoval |
| ZhangXiaodong | 5,250 | 1,275 | 0 | 3,975 | Topmanagementlockingshares | January1,2020 |
Total
| Total | 5,250 | 1,275 | 0 | 3,975 | -- | -- |
Ⅱ.Issuingandlisting
□Applicable√Notapplicable
III.Shareholdersandshareholding
InShares
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 30,787 | Totalnumberofpreferredshareholdersthathadrestoredthevotingrightattheendofthereportingperiod(ifany)(note8) | 0 | |||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | ||||||||||
| Shareholders | Natureofshareholder | Proportionofsharesheld（%） | Numberofsharesheldatperiod-end | Changesinreportingperiod | Amountofrestrictedsharesheld | Amountofun-restrictedsharesheld | Numberofsharepledged/frozen | |||
| Stateofshare | Amount | |||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | State-ownedlegalperson | 45.96% | 234,069,436 | 0 | 234,069,436 | |||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | State-ownedLegalperson | 3.17% | 16,129,032 | 0 | 16,129,032 | |||||
| SunHuiming | DomesticNatureperson | 0.63% | 3,224,767 | 0 | 3,224,767 | |||||
| ShaoHua | DomesticNatureperson | 0.59% | 3,000,000 | 3,000,000 | 3,000,000 | |||||
| LiSongqiang | DomesticNatureperson | 0.56% | 2,873,078 | 0 | 2,873,078 | |||||
| SuWeipeng | DomesticNatureperson | 0.55% | 2,823,066 | 2,823,066 | 2,823,066 | |||||
| LvQiang | DomesticNatureperson | 0.46% | 2,327,146 | 2,327,146 | 2,327,146 | |||||
| LiZengmao | DomesticNature | 0.29% | 1,478,6 | 331,997 | 1,478,697 | |||||
person
| person | 97 | ||||||||
| KuangGuowei | DomesticNatureperson | 0.27% | 1,400,200 | -52,600 | 1,400,200 | ||||
| HongFan | DomesticNatureperson | 0.26% | 1,338,900 | 0 | 1,338,900 | ||||
| Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)（SeeNotes3） | None | ||||||||
| Explanationonshareholdersparticipatinginthemargintradingbusiness | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingsCo.,Ltd.,AccordingtothedecisionoftheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,ShenzhenShenchaoTechnologyInvestmentCo.,LtdwastransferredtoShenzhenMajorIndustrialInvestmentGroupCo.,LtdinJune2019.ShenzhenInvestmentHoldingsCo.,LtdandShenzhenShenchaoTechnologyInvestmentCo.,LtdarebothcontrolledbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheShenzhenMunicipalPeople'sGovernment,sotheyarepersonsactinginconcert.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies. | ||||||||
| Shareholdingoftop10shareholdersofunrestrictedshares | |||||||||
| Nameoftheshareholder | Quantityofunrestrictedsharesheldattheendofthereportingperiod | Sharetype | |||||||
| Sharetype | Quantity | ||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | 234,069,436 | CommonsharesinRMB | 234,069,436 | ||||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | 16,129,032 | CommonsharesinRMB | 16,129,032 | ||||||
| SunHuiming | 3,224,767 | Foreignsharesindomesticmarket | 3,224,767 | ||||||
| ShaoHua | 3,000,000 | CommonsharesinRMB | 3,000,000 | ||||||
| LiSongqiang | 2,873,078 | CommonsharesinRMB | 2,873,078 | ||||||
| SuWeipeng | 2,823,066 | CommonsharesinRMB | 2,823,066 | ||||||
| LvQiang | 2,327,146 | CommonsharesinRMB | 2,327,146 | ||||||
LiZengmao
| LiZengmao | 1,478,697 | CommonsharesinRMB | 1,478,697 |
| KuangGuowei | 1,400,200 | CommonsharesinRMB | 1,400,200 |
| HongFan | 1,338,900 | CommonsharesinRMB | 1,338,900 |
| Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingsCo.,Ltd.,AccordingtothedecisionoftheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,ShenzhenShenchaoTechnologyInvestmentCo.,LtdwastransferredtoShenzhenMajorIndustrialInvestmentGroupCo.,LtdinJune2019.ShenzhenInvestmentHoldingsCo.,LtdandShenzhenShenchaoTechnologyInvestmentCo.,LtdarebothcontrolledbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheShenzhenMunicipalPeople'sGovernment,sotheyarepersonsactinginconcert.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies. | ||
| Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4) | TheCompanyShareholderShaoHuaholds3,000,000sharesoftheCompanythroughstockaccountwithcredittransaction;TheCompanyShareholderLiSongqiangholds2,872,653sharesoftheCompanythroughstockaccountwithcredittransaction;TheCompanyShareholderKuangGuoweiholds1,400,000sharesoftheCompanythroughstockaccountwithcredittransaction. | ||
Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod.
□Yes√NoThetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.IV.Changeofthecontrollingshareholderortheactualcontroller
Changeofthecontrollingshareholderinthereportingperiod
□Applicable√NotApplicableTherewasnoanychangeofthecontrollingshareholderoftheCompanyinthereportingperiod.Changeoftheactualcontrollerinthereportingperiod
□Applicable√NotapplicableTherewasnoanychangeoftheactualcontrolleroftheCompanyinthereportingperiod.
VII.SituationofthePreferredShares
□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod
VIIIInformationaboutconvertiblecorporatebonds
□Applicable√NotapplicableDuringthereportingperiod,thecompanydidnothaveconvertiblecorporatebonds.
IX.InformationaboutDirectors,SupervisorsandSeniorExecutivesI.Changeinsharesheldbydirectors,supervisorsandseniorexecutives
□Applicable√NotapplicableTherewasnochangeinshareholdingofdirectors,supervisorsandseniormanagementstaffs,forthespecificinformationpleaserefertothe2019AnnualReport.II.Changesindirectors,supervisorsandseniormanagementstaffs
√Applicable□Notapplicable
Name
| Name | Title | Type | Date | Reason |
| HeQiang | Independentdirector | Dimission | January16,2020 | Theexpiryofhisterm |
| WangKai | Independent | Elected | January16,2020 | Theoriginalindependentdirectorresignedaftertheexpiryofhisterm |
| WangWeixing | Chairmanofboardofsupervisors | Dimission | January16,2020 | JobChange |
| MaYi | Chairmanofboardofsupervisors | Elected | January16,2020 | Theformerchairmanoftheboardofsupervisorsresigns |
| LiLei | Shareholdersupervisor | Dimission | January16,2020 | JobChange |
| YuanShuwen | Shareholdersupervisor | Elected | January16,2020 | Theformershareholdersupervisorresigns |
X.CorporateBond
Whetherthecompanyhascorporatebondsthathavebeenpubliclyissuedandlistedonthestockexchange,and
notyetdueorduebutnotfollycashedontheapprovaldateofannualreportNo
XI.FinancialReport
1.Auditreport
Hasthissemi-annualreportbeenaudited?
□Yes√NoThesemi-annualfinancialreporthasnotbeenaudited.II.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY
1.ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.
June30,2020
InRMB
Items
| Items | June30,2020 | December30,2019 |
| Currentasset： | ||
| Monetaryfund | 208,316,334.46 | 409,564,847.52 |
| Settlementprovision | ||
| Outgoingcallloan | ||
| Transactionalfinancialassets | 779,000,000.00 | 830,000,000.00 |
| Derivativefinancialassets | ||
| Notereceivable | 43,359,624.18 | 40,424,601.97 |
| Accountreceivable | 437,419,876.54 | 365,325,029.38 |
| Financingofreceivables | 17,933,597.98 | |
| Prepayments | 13,159,741.33 | 18,445,857.53 |
| Insurancereceivable | ||
| Reinsurancereceivable | ||
| ProvisionsofReinsurancecontractsreceivable | ||
| Otheraccountreceivable | 13,661,767.18 | 12,440,761.13 |
| Including：Interestreceivable | 8,217,934.25 | 7,610,043.19 |
| Dividendreceivable | ||
| Repurchasingoffinancialassets |
Inventories
| Inventories | 465,530,597.15 | 391,717,935.12 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | 153,181,153.73 | 140,821,609.72 |
| Totalofcurrentassets | 2,113,629,094.57 | 2,226,674,240.35 |
| Non-currentassets： | ||
| Loansandpaymentonother’sbehalfdisbursed | ||
| Creditor'srightinvestment | ||
| Otherinvestmentonbonds | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 150,344,313.44 | 152,209,929.72 |
| Otherequityinstrumentsinvestment | 251,031,389.11 | 248,781,946.73 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 110,981,279.05 | 112,730,320.90 |
| Fixedassets | 850,896,074.15 | 903,229,077.83 |
| Constructioninprogress | 955,248,196.39 | 839,866,275.92 |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 36,621,663.74 | 36,517,996.34 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 2,408,396.07 | 2,692,750.67 |
| Deferredincometaxasset | 5,138,467.73 | 5,618,026.43 |
| Othernon-currentasset | 3,079,321.10 | |
| Totalofnon-currentassets | 2,362,669,779.68 | 2,304,725,645.64 |
| Totalofassets | 4,476,298,874.25 | 4,531,399,885.99 |
| Currentliabilities | ||
| Short-termloans | ||
| LoanfromCentralBank | ||
| Borrowingfunds | ||
| Transactionalfinancialliabilities |
Derivativefinancialliabilities
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountpayable | 226,976,267.97 | 241,297,770.64 |
| Advancereceipts | 23,352,862.33 | 30,530,117.62 |
| Contractliabilities | 2,379,082.85 | |
| Sellingofrepurchasedfinancialassets | ||
| Deposittakingandinterbankdeposit | ||
| Entrustedtradingofsecurities | ||
| Entrustedsellingofsecurities | ||
| Employees’wagepayable | 34,810,699.85 | 38,556,180.20 |
| Taxpayable | 7,353,738.67 | 22,545,550.33 |
| Otheraccountpayable | 151,289,669.81 | 152,645,780.14 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsurancefeepayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | ||
| Othercurrentliability | ||
| Totalofcurrentliability | 446,162,321.48 | 485,575,398.93 |
| Non-currentliabilities： | ||
| Reservefundforinsurancecontracts | ||
| Long-termloan | ||
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 116,384,476.41 | 121,264,571.22 |
| Deferredincometaxliability | 66,052,288.66 | 69,944,345.66 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 182,436,765.07 | 191,208,916.88 |
Totalofliability
| Totalofliability | 628,599,086.55 | 676,784,315.81 |
| Owners’equity | ||
| Sharecapital | 507,835,189.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,967,811,922.83 | 1,974,922,248.03 |
| Less：Sharesinstock | 7,525,438.20 | 16,139,003.40 |
| Othercomprehensiveincome | 121,813,181.68 | 119,737,783.31 |
| Specialreserve | ||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 |
| Commonriskprovision | ||
| Retainedprofit | 50,027,498.77 | 49,307,764.03 |
| Totalofowner’sequitybelongtotheparentcompany | 2,730,559,277.47 | 2,727,764,144.36 |
| Minorityshareholders’equity | 1,117,140,510.23 | 1,126,851,425.82 |
| Totalofowners’equity | 3,847,699,787.70 | 3,854,615,570.18 |
| Totalofliabilitiesandowners’equity | 4,476,298,874.25 | 4,531,399,885.99 |
LegalRepresentative:ZhuJunPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：MuLinying
2.ParentCompanyBalanceSheet
InRMB
| Items | June30,2020 | December31,2019 |
| Currentasset： | ||
| Monetaryfund | 12,264,752.47 | 27,979,338.37 |
| Transactionalfinancialassets | 645,000,000.00 | 650,000,000.00 |
| Derivativefinancialassets | ||
| Notereceivable | ||
| Accountreceivable | 8,203,393.69 | 522,931.04 |
| Financingofreceivables |
Prepayments
| Prepayments | 113,035.17 | 768,099.94 |
| Otheraccountreceivable | 16,879,106.51 | 17,039,506.00 |
| Including：Interestreceivable | 8,016,893.16 | 7,329,228.31 |
| Dividendreceivable | ||
| Inventories | ||
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | ||
| Totalofcurrentassets | 682,460,287.84 | 696,309,875.35 |
| Non-currentassets： | ||
| Debtinvestment | ||
| Otherinvestmentonbonds | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 2,100,564,895.60 | 2,102,430,511.88 |
| Otherequityinstrumentsinvestment | 209,066,395.02 | 206,816,952.64 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 105,720,014.17 | 107,199,622.80 |
| Fixedassets | 24,905,656.28 | 25,500,695.77 |
| Constructioninprogress | 19,552.00 | 19,552.00 |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 657,302.15 | 659,937.75 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 732,222.25 | 800,858.17 |
| Deferredincometaxasset | 4,993,437.12 | 5,466,478.06 |
| Othernon-currentasset | ||
| Totalofnon-currentassets | 2,446,659,474.59 | 2,448,894,609.07 |
| Totalofassets | 3,129,119,762.43 | 3,145,204,484.42 |
| Currentliabilities | ||
| Short-termloans | ||
| Transactionalfinancialliabilities |
Derivativefinancialliabilities
| Derivativefinancialliabilities | ||
| Notepayable | ||
| Accountpayable | 411,743.57 | 411,743.57 |
| Advancereceipts | 639,024.58 | 2,878,936.58 |
| ContractLiabilities | 2,236,912.00 | |
| Employees’wagepayable | 7,266,874.43 | 11,910,175.11 |
| Taxpayable | 5,607,736.61 | 20,801,961.18 |
| Otheraccountpayable | 111,633,093.71 | 119,984,209.60 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | ||
| Othercurrentliability | ||
| Totalofcurrentliability | 127,795,384.90 | 155,987,026.04 |
| Non-currentliabilities： | ||
| Long-termloan | ||
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 550,000.00 | 600,000.00 |
| Deferredincometaxliability | 63,061,040.14 | 66,953,097.14 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 63,611,040.14 | 67,553,097.14 |
| Totalofliability | 191,406,425.04 | 223,540,123.18 |
| Owners’equity | ||
| Sharecapital | 507,835,189.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt |
Capitalreserves
| Capitalreserves | 1,582,759,174.16 | 1,589,869,499.36 |
| Less：Sharesinstock | 7,525,438.20 | 16,139,003.40 |
| Othercomprehensiveincome | 112,839,436.11 | 110,764,037.74 |
| Specialreserve | ||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 |
| Retainedprofit | 651,208,052.93 | 637,234,475.15 |
| Totalofowners’equity | 2,937,713,337.39 | 2,921,664,361.24 |
| Totalofliabilitiesandowners’equity | 3,129,119,762.43 | 3,145,204,484.42 |
3.ConsolidatedIncomestatement
InRMB
| Items | Thefirsthalfyearof2020 | Thefirsthalfyearof2019 |
| I.Incomefromthekeybusiness | 856,313,348.74 | 1,008,863,295.50 |
| Incl：Businessincome | 856,313,348.74 | 1,008,863,295.50 |
| Interestincome | ||
| Insurancefeeearned | ||
| Feeandcommissionreceived | ||
| II.Totalbusinesscost | 847,649,045.52 | 1,013,198,391.97 |
| Incl：Businesscost | 760,908,303.61 | 940,587,510.73 |
| Interestexpense | ||
| Feeandcommissionpaid | ||
| Insurancedischargepayment | ||
| Netclaimamountpaid | ||
| Netamountofwithdrawalofinsurancecontractreserve | ||
| Insurancepolicydividendpaid | ||
| Reinsuranceexpenses | ||
| Businesstaxandsurcharge | 2,689,728.06 | 3,897,496.78 |
| Salesexpense | 13,380,921.28 | 7,369,804.52 |
| Administrativeexpense | 44,347,465.66 | 42,901,879.68 |
| R&Dcosts | 24,561,050.95 | 19,172,388.20 |
| Financialexpenses | 1,761,575.96 | -730,687.94 |
| Including：Interestexpense | 221,034.71 | 3,783,883.97 |
Interestincome
| Interestincome | -1,738,185.54 | -15,744,104.66 |
| Add:Otherincome | 13,045,221.53 | 11,035,139.06 |
| Investmentgain（“-”forloss） | 13,932,825.63 | -206,057.55 |
| Incl:investmentgainsfromaffiliates | -2,253,932.85 | -1,114,057.55 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Gainsfromcurrencyexchange | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | ||
| Creditimpairmentloss | -3,807,687.50 | 2,333,764.98 |
| Impairmentlossofassets | -35,474,634.93 | -21,259,451.35 |
| Assetsdisposalincome | -6,837.44 | 12,236,686.25 |
| III.Operationalprofit（“-”forloss） | -3,646,809.49 | -195,015.08 |
| Add：Non-operationalincome | 20,431.28 | 4,247,261.65 |
| Less:Non-operatingexpense | 106,410.77 | 6,092.62 |
| IV.Totalprofit(“-”forloss) | -3,732,788.98 | 4,046,153.95 |
| Less：Incometaxexpenses | 5,258,391.87 | 9,773,007.83 |
| V.Netprofit | -8,991,180.85 | -5,726,853.88 |
| (I)Classificationbybusinesscontinuity | ||
| 1.Netcontinuingoperatingprofit | -8,991,180.85 | -5,726,853.88 |
| 2.Terminationofoperatingnetprofit | ||
| (II)Classificationbyownership | ||
| 1.Netprofitattributabletotheownersofparentcompany | 719,734.74 | 7,832,287.98 |
| 2.Minorityshareholders’equity | -9,710,915.59 | -13,559,141.86 |
| VI.Netafter-taxofothercomprehensiveincome | 2,075,398.37 | 52,056,251.94 |
| Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany. | 2,075,398.37 | 52,056,251.94 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | 1,687,081.80 | 51,249,010.40 |
1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | 1,687,081.80 | 51,249,010.40 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| （II）Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | 388,316.57 | 807,241.54 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | 388,316.57 | 807,241.54 |
| 7.Other | ||
| NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity | ||
| VII.Totalcomprehensiveincome | -6,915,782.48 | 46,329,398.06 |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | 2,795,133.11 | 59,888,539.92 |
| Totalcomprehensiveincomeattributableminorityshareholders | -9,710,915.59 | -13,559,141.86 |
| VIII.Earningspershare | ||
| （I）Basicearningspershare | 0.0014 | 0.0153 |
(II)Dilutedearningspershare
| (II)Dilutedearningspershare | 0.0014 | 0.0153 |
LegalRepresentative:ZhuJunPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：MuLinying
4.IncomestatementoftheParentCompany
InRMB
| Items | Thefirsthalfyearof2020 | Thefirsthalfyearof2019 |
| I.Incomefromthekeybusiness | 26,969,922.20 | 34,593,508.28 |
| Incl：Businesscost | 4,305,058.16 | 5,929,735.08 |
| Businesstaxandsurcharge | 834,883.15 | 1,412,933.65 |
| Salesexpense | ||
| Administrativeexpense | 13,651,499.00 | 16,206,040.37 |
| R&Dexpense | ||
| Financialexpenses | -158,395.30 | -10,132,086.89 |
| Including：Interestexpenses | ||
| Interestincome | -176,466.36 | -9,924,921.96 |
| Add：Otherincome | 57,638.72 | 50,000.00 |
| Investmentgain（“-”forloss） | 11,066,543.43 | -206,057.55 |
| Including:investmentgainsfromaffiliates | -2,253,932.85 | -1,114,057.55 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | ||
| Creditimpairmentloss | -357,278.55 | 23,970.35 |
| Impairmentlossofassets | ||
| Assetsdisposalincome | 12,301,144.92 | |
| II.Operationalprofit（“-”forloss） | 19,103,780.79 | 33,345,943.79 |
| Add：Non-operationalincome | ||
| Less：Non-operationalexpenses | 27,244.40 | |
| III.Totalprofit(“-”forloss) | 19,076,536.39 | 33,345,943.79 |
Less：Incometaxexpenses
| Less：Incometaxexpenses | 5,102,958.61 | 8,655,961.40 |
| IV.Netprofit | 13,973,577.78 | 24,689,982.39 |
| 1.Netcontinuingoperatingprofit | 13,973,577.78 | 24,689,982.39 |
| 2.Terminationofoperatingnetprofit | ||
| V.Netafter-taxofothercomprehensiveincome | 2,075,398.37 | 52,056,251.94 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | 1,687,081.80 | 51,249,010.40 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | 1,687,081.80 | 51,249,010.40 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | 388,316.57 | 807,241.54 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrency | 388,316.57 | 807,241.54 |
financialstatements
| financialstatements | ||
| 7.Other | ||
| VI.Totalcomprehensiveincome | 16,048,976.15 | 76,746,234.33 |
| VII.Earningspershare | ||
| （I）Basicearningspershare | ||
| (II)Dilutedearningspershare |
5.ConsolidatedCashflowstatement
InRMB
| Items | Thefirsthalfyearof2020 | Thefirsthalfyearof2019 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 771,604,176.04 | 999,946,160.35 |
| Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany | ||
| Netincreaseofloansfromcentralbank | ||
| Netincreaseofinter-bankloansfromotherfinancialbodies | ||
| Cashreceivedagainstoriginalinsurancecontract | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseofclientdepositandinvestment | ||
| Cashreceivedfrominterest,commissionchargeandcommission | ||
| Netincreaseofinter-bankfundreceived | ||
| Netincreaseofrepurchasingbusiness | ||
| Netcashreceivedbyagentinsecuritiestrading | ||
| Taxreturned | 1,315,022.98 | 9,977,371.04 |
| Othercashreceivedfrombusinessoperation | 91,408,927.56 | 29,115,913.92 |
| Sub-totalofcashinflow | 864,328,126.58 | 1,039,039,445.31 |
| Cashpaidforpurchasingof | 799,466,447.26 | 884,541,697.70 |
merchandiseandservices
| merchandiseandservices | ||
| Netincreaseofclienttradeandadvance | ||
| Netincreaseofsavingsincentralbankandbrothercompany | ||
| Cashpaidfororiginalcontractclaim | ||
| Netincreaseinfinancialassetsheldfortradingpurposes | ||
| NetincreaseforOutgoingcallloan | ||
| Cashpaidforinterest,processingfeeandcommission | ||
| Cashpaidtostaffsorpaidforstaffs | 84,518,321.17 | 82,695,671.17 |
| Taxespaid | 31,950,122.40 | 15,981,651.90 |
| Othercashpaidforbusinessactivities | 84,012,710.98 | 31,994,062.19 |
| Sub-totalofcashoutflowfrombusinessactivities | 999,947,601.81 | 1,015,213,082.96 |
| Netcashgeneratedfrom/usedinoperatingactivities | -135,619,475.23 | 23,826,362.35 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | ||
| Cashreceivedasinvestmentgains | 9,408,374.94 | 2,513,730.75 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 600.00 | 6,200.00 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 1,812,790,070.06 | 620,264,450.94 |
| Sub-totalofcashinflowduetoinvestmentactivities | 1,822,199,045.00 | 622,784,381.69 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 119,759,298.85 | 88,061,134.28 |
| Cashpaidasinvestment | ||
| Netincreaseofloanagainstpledge | ||
| Netcashreceivedfromsubsidiaries |
andotheroperationalunits
| andotheroperationalunits | ||
| Othercashpaidforinvestmentactivities | 1,654,000,000.00 | 985,495,790.87 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 1,773,759,298.85 | 1,073,556,925.15 |
| Netcashflowgeneratedbyinvestment | 48,439,746.15 | -450,772,543.46 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Including:Cashreceivedasinvestmentfromminorshareholders | ||
| Cashreceivedasloans | 81,566,681.47 | |
| Otherfinancing–relatedcashreceived | ||
| Sub-totalofcashinflowfromfinancingactivities | 81,566,681.47 | |
| Cashtorepaydebts | 479,551,062.11 | |
| Cashpaidasdividend,profit,orinterests | 42,197,297.00 | |
| Including:Dividendandprofitpaidbysubsidiariestominorshareholders | ||
| Othercashpaidforfinancingactivities | 8,981,300.40 | 11,448,442.40 |
| Sub-totalofcashoutflowduetofinancingactivities | 8,981,300.40 | 533,196,801.51 |
| Netcashflowgeneratedbyfinancing | -8,981,300.40 | -451,630,120.04 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | 1,220,721.03 | 548,334.28 |
| V.Netincreaseofcashandcashequivalents | -94,940,308.45 | -878,027,966.87 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 268,646,588.18 | 1,133,574,235.22 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 173,706,279.73 | 255,546,268.35 |
6.CashFlowStatementoftheParentCompany
InRMB
Items
| Items | Thefirsthalfyearof2020 | Thefirsthalfyearof2019 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 19,462,991.54 | 35,598,741.25 |
| Taxreturned | ||
| Othercashreceivedfrombusinessoperation | 2,298,590.45 | 4,798,306.72 |
| Sub-totalofcashinflow | 21,761,581.99 | 40,397,047.97 |
| Cashpaidforpurchasingofmerchandiseandservices | 3,731,669.95 | 1,795,145.94 |
| Cashpaidtostaffsorpaidforstaffs | 13,526,840.12 | 11,643,989.59 |
| Taxespaid | 27,458,170.70 | 10,101,259.32 |
| Othercashpaidforbusinessactivities | 1,020,252.05 | 24,376,996.84 |
| Sub-totalofcashoutflowfrombusinessactivities | 45,736,932.82 | 47,917,391.69 |
| Netcashgeneratedfrom/usedinoperatingactivities | -23,975,350.83 | -7,520,343.72 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 12,000,000.00 | |
| Cashreceivedasinvestmentgains | 6,311,044.65 | 2,513,730.75 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | ||
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 791,934,487.06 | 8,629,426.36 |
| Sub-totalofcashinflowduetoinvestmentactivities | 798,245,531.71 | 23,143,157.11 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 1,003,466.38 | 54,410.00 |
| Cashpaidasinvestment | ||
| Netcashreceivedfromsubsidiariesandotheroperationalunits | ||
| Othercashpaidforinvestmentactivities | 780,000,000.00 | 60,000,000.00 |
Sub-totalofcashoutflowduetoinvestmentactivities
| Sub-totalofcashoutflowduetoinvestmentactivities | 781,003,466.38 | 60,054,410.00 |
| Netcashflowgeneratedbyinvestment | 17,242,065.33 | -36,911,252.89 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Cashreceivedasloans | ||
| Otherfinancing–relatedashreceived | ||
| Sub-totalofcashinflowfromfinancingactivities | ||
| Cashtorepaydebts | ||
| Cashpaidasdividend,profit,orinterests | ||
| Othercashpaidforfinancingactivities | 8,981,300.40 | 11,448,442.40 |
| Sub-totalofcashoutflowduetofinancingactivities | 8,981,300.40 | 11,448,442.40 |
| Netcashflowgeneratedbyfinancing | -8,981,300.40 | -11,448,442.40 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | ||
| V.Netincreaseofcashandcashequivalents | -15,714,585.90 | -55,880,039.01 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 27,979,338.37 | 85,416,567.74 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 12,264,752.47 | 29,536,528.73 |
7.ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod
InRMB
Items
| Items | Thefirsthalfyearof2020 | ||||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Sustainabledebt | Other | |||||||||||||
| I.Balanceattheendoflastyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| Add:Changeofaccountingpolicy | |||||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentities | |||||||||||||||
undercommoncontrol
| undercommoncontrol | |||||||||||||
| Other | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||
| III.Changedinthecurrentyear | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | 2,075,398.37 | 719,734.74 | 2,795,133.11 | -9,710,915.59 | -6,915,782.48 | |||||
| （1）Totalcomprehensiveincome | 2,075,398.37 | 719,734.74 | 2,795,133.11 | -9,710,915.59 | -6,915,782.48 | ||||||||
| （II）Investmentordecreasingofcapitalbyowners | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | ||||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedc |
apital
| apital | ||||
| 3．Amountofsharespaidandaccountedasowners’equity | ||||
| 4．Other | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | |
| （III）Profitallotment | ||||
| 1.Providingofsurplusreserves | ||||
| 2.Providingofcommonriskprovisions | ||||
| 3．Allotmenttotheowners(orshareholders) | ||||
| 4．Other | ||||
| (IV)Internaltransferringofowners’ |
equity
| equity |
| 1.Capitalizingofcapitalreserves(ortocapitalshares) |
| 2.Capitalizingofsurplusreserves(ortocapitalshares) |
| 3．Makinguplossesbysurplusreserves. |
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings |
| 5．Othercomprehens |
iveincomecarry-overretainedearnings
| iveincomecarry-overretainedearnings | |||||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendofthisterm | 507,835,189.00 | 1,967,811,922.83 | 7,525,438.20 | 121,813,181.68 | 90,596,923.39 | 50,027,498.77 | 2,730,559,277.47 | 1,117,140,510.23 | 3,847,699,787.70 |
Amountinlastyear
InRMB
| Items | Thefirsthalfyearof2019 | ||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||
| Preferredstock | Sustainable | Other |
debt
| debt | |||||||||||||||
| I.Balanceattheendoflastyear | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 1,339,208.41 | 80,004,803.23 | -57,774,473.41 | 2,373,329,991.86 | 1,086,150,534.88 | 3,459,480,526.74 | ||||||
| Add:Changeofaccountingpolicy | 147,376,128.10 | 147,376,128.10 | 147,376,128.10 | ||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 148,715,336.51 | 80,004,803.23 | -57,774,473.41 | 2,520,706,119.96 | 1,086,150,534.88 | 3,606,856,654.84 | ||||||
| III.Changedinthecurrentyear | 52,056,251.94 | 7,832,287.98 | 59,888,539.92 | -13,802,135.00 | 46,086,404.92 | ||||||||||
| （1）Totalcomprehens | 52,056,2 | 7,832,287.9 | 59,888,539. | -13,802, | 46,086,404. |
iveincome
| iveincome | 51.94 | 8 | 92 | 135.00 | 92 | |||
| （II）Investmentordecreasingofcapitalbyowners | ||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | ||||||||
| 4．Other | ||||||||
| （III）Profitallotment | ||||||||
| 1.Providingofsurplusreserves |
2.Providingofcommonriskprovisions
| 2.Providingofcommonriskprovisions |
| 3．Allotmenttotheowners(orshareholders) |
| 4．Other |
| (IV)Internaltransferringofowners’equity |
| 1.Capitalizingofcapitalreserves(ortocapitalshares) |
| 2.Capitalizingofsurplusreserves(ortocapitalshares) |
| 3．Making |
uplossesbysurplusreserves.
| uplossesbysurplusreserves. | |||||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | |||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | |||||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendof | 511,274, | 1,865,71 | 27,230,6 | 200,771, | 80,004,8 | -49,942,185. | 2,580,594,6 | 1,072,34 | 3,652,943,0 |
thisterm
| thisterm | 149.00 | 6,983.63 | 79.00 | 588.45 | 03.23 | 43 | 59.88 | 8,399.88 | 59.76 |
8.Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiod
InRMB
| Items | Thefirsthalfyearof2020 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| Add:Changeofaccountingpolicy | ||||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| III.Changedinthecurrentyear | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | 2,075,398.37 | 13,973,577.78 | 16,048,976.15 | ||||||
| （I）Totalcomprehensiveincome | 2,075,398.37 | 13,973,577.78 | 16,048,976.15 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | |||||||||
Items
| Items | Thefirsthalfyearof2020 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||||
| 4．Other | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | |||||||||
| （III）Profitallotment | ||||||||||||
| 1.Providingofsurplusreserves | ||||||||||||
| 2．Allotmenttotheowners(orshareholders) | ||||||||||||
| 3．Other | ||||||||||||
| (IV)Internaltransferringofowners’equity | ||||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||||
Items
| Items | Thefirsthalfyearof2020 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | ||||||||||||
| 6．Other | ||||||||||||
| (V)Specialreserves | ||||||||||||
| 1.Providedthisyear | ||||||||||||
| 2．Usedthisterm | ||||||||||||
| （VI）Other | ||||||||||||
| IV.Balanceattheendofthisterm | 507,835,189.00 | 1,582,759,174.16 | 7,525,438.20 | 112,839,436.11 | 90,596,923.39 | 651,208,052.93 | 2,937,713,337.39 | |||||
Amountinlastyear
InRMB
| Items | Thefirsthalfyearof2019 | |||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Share | OtherComprehensive | Specialized | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |
Preferred
stock
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 1,339,208.41 | 80,004,803.23 | 483,666,452.70 | 2,648,079,389.30 | |||||
| Add:Changeofaccountingpolicy | 138,402,384.72 | 138,402,384.72 | ||||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 139,741,593.13 | 80,004,803.23 | 483,666,452.70 | 2,786,481,774.02 | |||||
| III.Changedinthecurrentyear | 52,056,251.94 | 24,689,982.39 | 76,746,234.33 | |||||||||
| （I）Totalcomprehensiveincome | 52,056,251.94 | 24,689,982.39 | 76,746,234.33 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | ||||||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profitallotment |
Items
| Items | Thefirsthalfyearof2019 | |||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| 1.Providingofsurplusreserves | ||||||||||||
| 2．Allotmenttotheowners(orshareholders) | ||||||||||||
| 3．Other | ||||||||||||
| (IV)Internaltransferringofowners’equity | ||||||||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | ||||||||||||
| 6．Other | ||||||||||||
| (V)Specialreserves | ||||||||||||
| 1.Providedthisyear | ||||||||||||
Items
| Items | Thefirsthalfyearof2019 | |||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| 2．Usedthisterm | ||||||||||||
| （VI）Other | ||||||||||||
| IV.Balanceattheendofthisterm | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 191,797,845.07 | 80,004,803.23 | 508,356,435.09 | 2,863,228,008.35 | |||||
III.BasicInformationoftheCompany
1.Enterpriseregistrationaddress,organizationmodeandheadquarteraddress.
ThecompanywaspreviouslytheShenzhenTextileIndustryCompany,onApril13,1994,approvedbytheLetter(1994)No.15issuedbyShenzhenMunicipalPeople'sGovernment,theCompanywasrestructuredandnamedasShenzhenTextile(Holdings)Co.,Ltd.Inthesameyear,approvedbythe(1994)No.19fileofShenzhenshi,thesharesofthecompanywerelistedinShenzhenStockExchange.Thecompanynowholdsaunifiedsocialcreditcodeforthe91440300192173749Ybusinesslicense,Registrationaddressandheadquarteraddressare6/F,ShenfangBuilding,No.3HuaqiangRoad.North,FutianDistrict,Shenzhen.
2.Enterprise’sbusinessnatureandmajorbusinessoperation.Atpresent,theCompanyismainlyengagedinhigh-techindustryfocusingonR&D,productionandmarketingofpolarizersforliquidcrystaldisplay,managementofpropertiesinbustlingbusinessdistrictsofShenzhenandreservedhigh-classtextileandgarmentbusiness.
3.ApprovalofthefinancialstatementsreportedThefinancialstatementshavebeenauthorizedforissuanceofthe31thmeetingoftheSeventhBoardofDirectorsoftheGrouponAugust8,2020.Asoftheendofthereportingperiod,thereare7subsidiariescompaniesincludedintheconsolidatedfinancialstatements:ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.,ShenzhenLisiIndustrialDevelopmentCo.,Ltd.,ShenzhenHuaqiangHotel,ShenzhenShenfangPropertyManagementCo.,Ltd.ShenzhenBeaufityGarmentsCo.,Ltd.,ShzhenShenfangImport&ExportCo.,Ltd.,andShengtou(Hongkong)Co.,Ltd.Thescopeofconsolidatedfinancialstatementsthisperioddidnotchange.IV.Basisforthepreparationoffinancialstatements
（1）Basisforthepreparation
Thiscompany’sfinancialstatementsisbasedongoing-concernassumptionandworkedoutaccordingtoactualtransactionsandmatters,AccountingStandardforBusinessEnterprises--BasicStandard(issuedbyNo.33DecreeoftheMinistryofFinanceandrevisedbyNo.76DecreeoftheMinistryofFinance)issuedbytheMinistryofFinance,42specialaccountingstandardsenactedandrevisedonandafterFeb15,2006,guidelineforapplicationofaccountingstandardforbusinessenterprises,ASBEinterpretationsandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardforBusinessEnterprises”)andNo.15ofCompilationRulesforInformationDisclosurebyCompaniesOfferingSecuritiestothePublic--GeneralProvisionsofFinancialReports(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.
(2)Continuation
Therewillbenosucheventsorsituationsinthe12monthsfromtheendofthereportingperiodthatwillcausematerialdoubtsastothecontinuationcapabilityoftheCompany.V.ImportantaccountingpoliciesandestimationsSpecificaccountingpoliciesandaccountingestimatestips:
Accordingtotheactualproductionandoperationcharacteristics,thecompanyhasformulatedspecificaccountingpoliciesandaccountingestimatesforsuchtransactionsoreventsasprovisionforbaddebtsofreceivables,depreciationoffixedassets,amortizationofintangibleassets,andrevenuerecognition.
1.StatementoncomplyingwithcorporateaccountingstandardsThefinancialstatementspreparedbytheCompanycomplywiththerequirementsofcorporateaccountingstandards.Theytrulyandcompletelyreflectthefinancialsituations,operatingresults,equitychangesandcashflow,andotherrelevantinformationofthecompany.
2.FiscalYearTheCompanyadoptstheGregoriancalendaryearcommencingonJanuary1andendingonDecember31asthefiscalyear.
3.OperatingcycleNormalbusinesscycleisrealizedbytheCompanyincashorcashequivalentsfromthepurchaseofassetsformpocessinguntil.Lessthan1yearisforthenormaloperatingcycleinthecompany.Withregardtolessthan1yearforthenormaloperatingcycle,theassetsrealizedortheliabilitiesrepaidatmaturitywithinoneyearasofthebalancesheetdateshallbeclassifiedintothecurrentassetsorthecurrentliabilities.
4.AccountingstandardmoneyTheCompanytakesRMBasthestandardcurrencyforbookkeeping.
5.Accountingprocessmethodofenterpriseconsolidationundersameanddifferentcontrolling.
（1）Enterprisemergerundersamecontrol：
Forabusinesscombinationinvolvingenterprisesundercommoncontrol,thepartythat,onthecombinationdate,obtainscontrolofanotherenterpriseparticipatinginthecombinationistheabsorbingparty,whilethatotherenterpriseparticipatinginthecombinationisapartybeingabsorbed.Combinationdateisthedateonwhichtheabsorbingpartyeffectivelyobtainscontrolofthepartybeingabsorbed.
Theassetsandliabilitiesobtainedaremeasuredatthecarryingamountsasrecordedbytheenterprisebeingcombinedatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountofconsiderationpaidforthecombination(orthetotalfacevalueofsharesissued)isadjustedtothecapitalpremiuminthecapitalreserve.Ifthebalanceofthecapitalpremiumisinsufficient,anyexcessisadjustedtoretainedearnings.Thecostofacombinationincurredbytheabsorbingpartyincludesanycostsdirectlyattributabletothecombinationshallberecognizedasanexpensethroughprofitorlossforthecurrentperiodwhenincurred.AccountingTreatmentoftheConsolidatedFinancialStatements:
Thelong-termequityinvestmentheldbythecombiningpartybeforethecombinationwillchangeiftherelevantprofitandloss,othercomprehensiveincomeandotherownerequityareconfirmedbetweentheultimatecontrol
dateandthecombiningdateforthecombiningpartyandthecombinedpartyontheacquirementdate,andshallrespectivelyoffsettheinitialretainedincomesortheprofitsandlossesofthecurrentperiodduringthecomparativestatement.
(2)BusinesscombinationinvolvingentitiesnotundercommoncontrolAbusinesscombinationinvolvingenterprisesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Forabusinesscombinationnotinvolvingenterprisesundercommoncontrol,thepartythat,ontheacquisitiondate,obtainscontrolofanotherenterpriseparticipatinginthecombinationistheacquirer,whilethatotherenterpriseparticipatinginthecombinationistheacquiree.Acquisitiondateisthedateonwhichtheacquirereffectivelyobtainscontroloftheacquiree.Thedifferenceofthemergercostminusthefairvaluesharesofidentifiablenetassetsobtainedbytheacquireeduringthemergerontheacquisitiondate,isrecognizedasthebusinessreputation.Whilethemergercostislessthanthefairvaluesharesofidentifiablenetassetsobtainedbytheacquireeduringthemerger,allthemeasurementontheidentifiableassets,theliabilities,thefairvalueofliabilitiesandthemergercostobtainedbytheacquireeshouldfirstlyberechecked,andthedifferenceshallberecordedintothecurrentprofitsandcostsifthemergercostisstilllessthanthefairvaluesharesofidentifiablenetassetsobtainedbytheacquireeduringthemergerafterrechecking.
Wherethetemporarydifferenceobtainedbytheacquirerwasnotrecognizedduetoinconformitywiththeconditionsappliedforrecognitionofdeferredincometax,if,withinthe12monthsafteracquisition,additionalinformationcanprovetheexistenceofrelatedinformationatacquisitiondateandtheexpectedeconomicbenefitsontheacquisitiondatearosefromdeductibletemporarydifferencebytheacquireecanbeachieved,relevantincometaxassetscanberecognized,andgoodwilloffset.Ifthegoodwillisnotsufficient,thedifferenceshallberecognizedasprofitofthecurrentperiod.
Forabusinesscombinationnotinvolvingenterpriseundercommoncontrol,whichachievedinstagesthatinvolvesmultipleexchangetransactions,accordingto“ThenoticeoftheMinistryofFinanceontheissuanceofAccountingStandardsInterpretationNo.5”(CaiKuai[2012]No.19)andArticle51of“AccountingStandardsforBusinessEnterprisesNo.33-ConsolidatedFinancialStatements”onthe“packagedeal”criterion,tojudgethemultipleexchangetransationswhethertheyarethe"packagedeal".Ifitbelongtothe“packagedeal”inreferencetotheprecedingparagraphsofthissectionand“long-terminvestment”accountingtreatment,ifitdoesnotbelongtothe“packagedeal”todistinguishtheindividualfinancialstatementsandtheconsolidatedfinancialstatementsrelatedtotheaccountingtreatment:
Intheindividualfinancialstatements,thetotalvalueofthebookvalueoftheacquiree'sequityinvestmentbeforetheacquisitiondateandthecostofnewinvestmentattheacquisitiondate,astheinitialcostoftheinvestment,theacquiree'sequityinvestmentbeforetheacquisitiondateinvolvedinothercomprehensiveincome,inthedisposaloftheinvestmentwillbeinothercomprehensiveincomeassociatedwiththeuseofinfrastructureandtheacquireedirectlyrelatedtothedisposalofassetsorliabilitiesofthesameaccountingtreatment(thatis,exceptinaccordancewiththeequitymethodofaccountinginthedefinedbenefitplanacquireeisremeasurednetchangesinnetassetsorliabilitiesotherthaninthecorrespondingshareofthelead,andtherestintothecurrentinvestmentincome).Inthecombinationfinancialstatements,theequityinterestintheacquireepreviouslyheldbeforetheacquisitiondatere-assessedatthefairvalueattheacquisitiondate,withanydifferencebetweenitsfairvalueanditscarryingamountisrecordedasinvestmentincome.Thepreviously-heldequityinterestintheacquireeinvolvedinother
comprehensiveincomeandothercomprehensiveincomeassociatedwiththepurchaseofthefoundationshouldbeusedpartydirectlyrelatedtothedisposalofassetsorliabilitiesofthesameaccountingtreatment(thatis,exceptinaccordancewiththeequitymethodofaccountingintheacquireeisremeasureddefinedbenefitplansotherthanchangesinnetliabilitiesornetassetsduetoacorrespondingshareoftherestoftheacquisitiondateintocurrentinvestmentincome).
6.Preparationoftheconsolidatedfinancialstatements
(1)ThescopeofconsolidationThescopeofconsolidationfortheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlisthepowertogovernthefinancialandoperatingpoliciesofanenterprisesoastoobtainbenefitsfromitsoperatingactivities.Therelevanteventsrefertotheactivitiesthathavesignificantinfluenceonthereturntotheinvestedparty.Inaccordancewiththespecificconditions,therelevanteventsoftheinvestedpartyshouldconcludethesaleandpurchaseofgoodsandservices,themanagementofthefinancialassets,thepurchaseanddisposaloftheassets,theresearchanddevelopmentactivities,thefinancingactivitiesandsoon.
ThescopeofconsolidationincludestheCompanyandallofthesubsidiaries.SubsidiaryisanenterpriseorentityunderthecontroloftheCompany.Oncethechangeintherelevantfactsandcircumstancesleadingtothedefinitionoftherelevantelementsinvolvedinthecontrolofthechange,thecompanywillbere-evaluated.
(2)Preparationoftheconsolidatedfinancialstatements.TheCompanybasedonitsownanditssubsidiariesfinancialstatements,inaccordancewithotherrelevantinformation,topreparetheconsolidatedfinancialstatements.Forasubsidiaryacquiredthroughabusinesscombinationnotundercommoncontrol,theoperatingresultsandcashflowsfromtheacquisition(thedatewhenthecontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriated;noadjustmentismadetotheopeningbalanceandcomparativefiguresintheconsolidatedfinancialstatements.Whereasubsidiaryandapartybeingabsorbedinamergerbyabsorptionwasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingenterprisesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatements.Theresultsofoperationsandcashflowareincludedintheconsolidatedbalancesheetandtheconsolidatedincomestatement,respectively,basedontheircarryingamounts,fromthedatethatcommoncontrolwasestablished,andtheopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarerestated.
WhentheaccountingperiodoraccountingpoliciesofasubsidiaryaredifferentfromthoseoftheCompany,theCompanymakesnecessaryadjustmentstothefinancialstatementsofthesubsidiarybasedontheCompany’sownaccountingperiodoraccountingpolicies.Whereasubsidiarywasacquiredduringthereportingperiodthroughabusinesscombinationnotundercommoncontrol,thefinancialstatementswasreconciliatedonthebasisofthefairvalueofidentifiablenetassetsatthedateofacquisition.Intra-Groupbalancesandtransactions,andanyunrealizedprofitorlossarisingfromintra-Grouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.MinorityinterestandtheportioninthenetprofitorlossnotattributabletotheCompanyarepresentedseparatelyintheconsolidatedbalancesheetwithinshareholders’/owners’equityandnetprofit.Netprofitorlossattributabletominorityshareholdersinthesubsidiariesispresentedseparatelyasminorityinterestintheconsolidatedincomestatementbelowthenetprofitlineitem.Whentheamountoflossforthecurrentperiodattributabletotheminorityshareholdersofasubsidiaryexceeds
theminorityshareholders’portionoftheopeningbalanceofshareholders’/equityofthesubsidiary,theexcessisallocatedagainsttheminorityinterests.WhentheCompanylosescontrolofasubsidiaryduetothedisposalofaportionofanequityinvestmentorotherreasons,theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetween1)thetotalamountofconsiderationreceivedfromthetransactionthatresultedinthelossofcontrolandthefairvalueoftheremainingequityinvestmentand2)thecarryingamountsoftheinterestintheformersubsidiary’snetassetsimmediatelybeforethelossofthecontrolisrecognizedasinvestmentincomeforthecurrentperiodwhencontrolislost.Othercomprehensiveincomerelatedtotheformersubsidiary'sequityinvestment,usingthefoundationandtheacquireedirectlyrelatedtothedisposalofthesameassetsorliabilitiesareaccountedwhenthecontrolislost(ie,inadditiontotheformersubsidiaryisremeasuredatthenetdefinedbenefitplanorchangesinnetassetsandliabilitiesresultingfrom,therestaretransferredtothecurrentinvestmentincome).Theretainedinterestissubsequentlymeasuredaccordingtotherulesstipulatedinthe-“ChineseAccountingStandardsforBusinessEnterprisesNo.2-Long-termequityinvestment”or“ChineseAccountingStandardsforBusinessEnterprisesNo.22-Determinationandmeasurementoffinancialinstruments”.Thecompanythroughmultipletransactionsstepdealwithdisposalofthesubsidiary'sequityinvestmentuntilthelossofcontrol,needtodistinguishbetweenequityuntilthedisposalofasubsidiary'slossofcontroloverwhetherthetransactionispackagedeal.Termsofthetransactiondispositionofequityinvestmentinasubsidiary,subjecttothefollowingconditionsandtheeconomicimpactofoneormoreofcases,usuallyindicatesthatseveraltransactionsshouldbeaccountedforasapackagedeal:①thesetransactionsareconsidered。simultaneously,orinthecaseofmutualinfluencemade,②thesetransactionsasawholeinordertoachieveacompletebusinessresults;
③theoccurrenceofatransactiondependsonoccursatleastoneothertransaction;④atransactionlookaloneisnoteconomical,butwhenconsideredtogetherwithothertransactioniseconomical.Iftheydoesnotbelongtothepackagedeal,eachofthemseparately,asthecaseofatransactioninaccordancewith“withoutlosingcontroloverthedisposalofasubsidiarypartofalong-termequityinvestments“principlesapplicableaccountingtreatment.Untilthedisposaloftheequityinvestmentlossofcontrolofasubsidiaryofthetransactionsbelongingtothepackagedeal,thetransactionwillbeusedasadisposalofasubsidiaryandthelossofcontrolofthetransaction.However,beforelosingcontrolofthepriceofeachdisposalentitledtoshareinthenetassetsofthesubsidiary'sinvestmentcorrespondingtothedifferencebetweenthedisposal,recognizedintheconsolidatedfinancialstatementsasothercomprehensiveincome,lossofcontroloverthetransferredtogetherwiththelossofcontrolorlossintheperiod.
7.JointventurearrangementsclassificationandCo-operationaccountingtreatment
(1)JointarrangementAjointarrangementisanarrangementofwhichtwoormorepartieshavejointcontrol，dependingoftherightsandobligationoftheCompanyinthejointarrangement.AjointoperationisajointarrangementwherebytheCompanyhasrightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.AjointventureisajointarrangementwherebytheCompanyhasrightstothenetassetsofthearrangement.
(2)Co-operationaccountingtreatmentWhenthejointventurecompanyforjointoperations,confirmthefollowingitemsandsharecommonbusinessinterestsrelatedto:
（1）Confirmindividualassetsandcommonassetsheldbasedonshareholdings;
（2）Confirmindividualliabilitiesandsharedliabilitiesheldbasedonshareholdings;
（3）Confirmtheincomefromthesalesrevenueofco-operatebusinessoutput
（4）Confirmtheincomefromthesalesoftheco-operatebusinessoutputbasedonshareholdings;
（5）Confirmtheindividualexpenditureandco-operatebusinesscostbasedonshareholdings.
(3)Whenacompanyisajointventures,jointventureinvestmentwillberecognizedaslong-termequityinvestments.
8.RecognitionStandardofCash&CashEquivalentsCashandcashequivalentsoftheCompanyincludecashonhand,readyusabledepositsandinvestmentshavingshortholdingterm(normallywillbeduewithinthreemonthsfromthedayofpurchase),withstrongliquidityandeasytobeexchangedintocertainamountofcashthatcanbemeasuredreliablyandhavelowrisksofchange.
9.ForeignCurrencyTransaction
（1）ForeignCurrencyTransactionTheapproximateshotexchangerateonthetransactiondateisadoptedandtranslatedasRMBamountwhentheforeigncurrencytransactionisinitiallyrecognized.Onthebalancesheetdate,themonetaryitemsofforeigncurrencyaretranslatedaspertheshotexchangerateonthebalancesheetdate,theforeignexchangeconversiongapduetotheexchangerate,exceptforthebalanceofexchangeconversionarisingfromspecialforeigncurrencyborrowingscapitalsandinterestsforthepurchaseandconstructionofqualifiedcapitalizationassets,shallberecordedintotheprofitsandlossesofthecurrentperiod.Thenon-monetaryitemsofforeigncurrencymeasuredatthehistoricalcostshallstillbetranslatedatthespotexchangerateonthetransactiondate,ofwhichtheRMBamountshallnotbechanged.Thenon-monetaryitemsofforeigncurrencymeasuredatthefairvalueshallbetranslatedatthespotexchangerateonthefairvaluerecognizeddate,thegapshallberecordedintothecurrentprofitsandlossesorothercomprehensiveincomes.
(2)TranslationMethodofForeignCurrencyFinancialStatementFortheassetsandliabilitiesinthebalancesheet,theshotexchangerateonthebalancesheetdateisadoptedasthetranslationexchangerate.Fortheowner’sequity,theshotexchangerateonthetransactiondateisadoptedasthetranslationexchangerate,withtheexceptionof“undistributedprofits”.Theincomesandexpensesintheincomestatementshallbetranslatedatthespotexchangerateortheapproximateexchangerateonthetransactiondate.Thetranslationgapoffinancialstatementofforeigncurrencyconvertedaboveshallbelistedinothercomprehensiveincomesundertheowner’sequityintheconsolidatedbalancesheet.
10.FinancialinstrumentsWhenthecompanybecomesapartytothefinancialinstrumentcontract,therelevantfinancialassetsorfinancialliabilitiesareconfirmed.
（1）Classification,recognitionandmeasurementoffinancialassets
Inaccordancewiththecharacteristicsofbusinessmodelformanagingfinancialassetsandthecontractualcashflowoffinancialassets,theCompanyclassifiesfinancialassetsinto:financialassetsmeasuredinamortizedcost;financialassetsmeasuredatfairvalueandtheir'schangesareincludedinothercomprehensiveincome;financial
assetsmeasuredatfairvalueandtheir'schangesareincludedincurrentprofitsandlosses.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalue,whosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses;Forothertypesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.AccountsreceivableornotesreceivablearisingfromthesaleofproductsortheprovisionoflaborservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponentsareinitiallyrecognizedbytheCompanyinaccordancewiththeamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceive.
①FinancialassetsmeasuredatamortizedcostThebusinessmodeloftheCompany'smanagementoffinancialassetsmeasuredbyamortizedcostisaimedatcollectingthecontractualcashflow,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwiththebasiclendingarrangements,thatis,thecashflowgeneratedonaspecificdateisonlythepaymentofprincipalandinterestbasedontheamountofoutstandingprincipal.Forsuchfinancialassets,theCompanyadoptsthemethodofrealinterestrateandmakessubsequentmeasurementaccordingtothecostofamortization.Theprofitsorlossesresultingfromamortizationorimpairmentareincludedincurrentprofitsandlosses.
②FinancialassetsmeasuredatfairvalueandchangesincludedinothercomprehensiveincomeTheCompany'sbusinessmodelformanagingsuchfinancialassetsistocollectthecontractualcashflow,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwiththebasiclendingarrangements.TheCompanymeasuressuchfinancialassetsatfairvalueandtheirchangesareincludedinothercomprehensivegains,butimpairmentlossesorgains,exchangegainsandlossesandinterestincomecalculatedaccordingtotheactualinterestratemethodareincludedincurrentprofitsandlosses.
Inaddition,theCompanydesignatedsomenon-tradingequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.TheCompanyincludestherelevantdividendincomeofsuchfinancialassetsincurrentprofitsandlosses,andthechangesinfairvalueinothercomprehensivegains.Whenthefinancialassetceasestoberecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensivegainsshallbetransferredintoretainedincomefromothercomprehensiveincome,andnotbeincludedincurrentprofitandloss.
③Financialassetsmeasuredatfairvalueandchangesincludedincurrentprofitsandlosses
TheCompanyincludestheabove-mentionedfinancialassetsmeasuredatamortizedcostandthosemeasuredatfairvalueandtheir'schangesinfinancialassetsotherthanfinancialassetsofcomprehensiveincomeandclassifiesthemasfinancialassetsmeasuredatfairvalueandtheir'schangesthatareincludedincurrentprofitsandlosses.Inaddition,theCompanydesignatessomefinancialassetsasfinancialassetsmeasuredatfairvalueandincludestheirchangesincurrentprofitsandlossesinordertoeliminateorsignificantlyreduceaccounting
mismatchesduringinitialrecognition.Inregardwithsuchfinancialassets,theCompanyadoptsfairvalueforsubsequentmeasurement,andincludeschangesinfairvalueintocurrentprofitsandlosses.
2.Classificationandmeasurementoffinancialliabilities
Financialliabilitiesareclassifiedasfinancialliabilitiesandotherfinancialliabilitiesmeasuredatfairvalueatthetimeofinitialrecognitionandtheirchangesareincludedinthecurrentprofitsandlosses.Forfinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses,andrelevanttransactioncostsforotherfinancialliabilitiesareincludedintheirinitialrecognitionamount.
①Financialliabilitiesmeasuredatfairvalue,whosechangesareincludedincurrentprofitsandlosses
Financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesincludetransactionalfinancialliabilities(includingderivativeswhicharefinancialliabilities)andfinancialliabilitiesdesignatedatfairvalueatinitialrecognitionandwhosechangesareincludedincurrentprofitsandlosses.
Transactionalfinancialliabilities(includingderivativesbelongingtofinancialliabilities)aresubsequentlymeasuredaccordingtofairvalue.Exceptforhedgingaccounting,changesinfairvalueareincludedincurrentprofitsandlosses.
Financialliabilitiesdesignatedasfinancialliabilitiesthataremeasuredatfairvalueandtheir'schangesareincludedincurrentprofitsandlosses.TheliabilitiesareincludedinothercomprehensivegainsduetochangesinfairvaluecausedbychangesintheCompany'sowncreditrisk,andwhentheliabilitiesareterminated,thechangesinfairvaluecausedbychangesinitsowncreditriskofothercomprehensivegainsareincludedinthecumulativechangesinitsfairvaluecausedbychangesinitsowncreditriskofothercomprehensivegains.Theamountistransferredtoretainedearnings.Theremainingchangesinfairvalueareincludedincurrentprofitsandlosses.Iftheabove-mentionedwayofdealingwiththeimpactofthechangesinthecreditriskofsuchfinancialliabilitieswillresultinorexpandtheaccountingmismatchintheprofitsandlosses,theCompanyshallincludealltheprofitsorlossesofsuchfinancialliabilities(includingtheamountoftheimpactofthechangesinthecreditriskoftheenterpriseitself)intothecurrentprofitsandlosses.
②Otherfinancialliabilities
Inadditiontothetransferofafinancialassetisnotinconformitywiththeconditionstostoptherecognitionorformedbyitscontinuousinvolvementinthetransferredfinancialasset,financialliabilitiesandfinancialguaranteecontractofotherfinancialliabilitiesclassifiedasfinancialliabilitiesmeasuredattheamortizedcost,measuredattheamortizedcostforsubsequentmeasurement,recognitionhasbeenstoppedoramortizationoftheprofitorlossisincludedinthecurrentprofitsandlosses.
3.Recognitionandmeasurementoffinancialassetstransfer
TheGroupderecognizesafinancialassetwhenoneofthefollowingconditionsismet:
1)therightstoreceivecashflowsfromtheassethaveexpired;
2)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassettoathirdpartyunderapass-througharrangement;or
3)theenterprisehastransferreditsrightstoreceivecashflowsfromtheassetandeitherhastransferredsubstantiallyalltherisksandrewardsoftheasset,orhasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.Iftheenterprisehasneitherretainedalltherisksandrewardsfromthefinancialassetnorcontrolovertheasset,theassetisrecognizedaccordingtotheextentitexistsasfinancialasset,andcorrespondentliabilityisrecognized.Theextentofexistencerefersthelevelofriskbythefinancialassetchangestheenterpriseisfacing.Foratransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thecarryingamountofthefinancialassettransferred;andthesumoftheconsiderationreceivedfromthetransferandanycumulativegainorlossthathadbeenrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Ifapartofthetransferredfinancialassetqualifiesforderecognition,thecarryingamountofthetransferredfinancialassetisallocatedbetweenthepartthatcontinuestoberecognizedandthepartthatisderecognized,basedontherelativefairvalueofthoseparts.Thedifferencebetween(a)thecarryingamountallocatedtothepartderecognized;and(b)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.TheCompanyusesrecoursesalefinancialassets,orfinancialassetsheldendorser,determinealmostalloftherisksandrewardsofownershipofthefinancialassetshavebeentransferredif.Hastransferredtheownershipofthefinancialassetsofalmostalltherisksandrewardstothetransferee,thederecognitionofthefinancialasset;retainsownershipofthefinancialassetsofalmostalloftherisksandrewardsoffinancialassetsthatarenotderecognised;neithertransfersnorretainsownershipofthefinancialassetsofalmostalloftherisksandrewards,thencontinuetodeterminewhethertheenterpriseretainscontroloftheassetsandtheaccountingtreatmentinaccordancewiththeprinciplesdescribedintheprecedingparagraphs.
4.TerminationconfirmationoffinancialliabilitiesIfthecurrentobligationofafinancialliability(orpartthereof)hasbeendischarged,theCompanyshallterminatetherecognitionofthefinancialliability(orpartthereof).IftheCompany(thedebtor)signsanagreementwiththelendertoreplacetheoriginalfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheoriginalfinancialliabilities,itshallterminatetherecognitionoftheoriginalfinancialliabilitiesandatthesametimeconfirmanewfinancialliabilities.IftheCompanysubstantiallyamendsthecontracttermsoftheoriginalfinancialliabilities(orpartthereof),itshallterminatetheconfirmationoftheoriginalfinancialliabilitiesandatthesametimeconfirmanewfinancialliabilitiesinaccordancewiththerevisedterms.Ifthefinancialliabilities(orpartthereof)areterminated,thedifferencebetweentheirbookvalueandtheconsiderationpaid(includingthetransferrednon-cashassetsorliabilitiesassumed)shallbeincludedintheprofitsandlossesofthecurrentperiod.
5.Offsettingfinancialassetsandfinancialliabilities
WhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
6.MethodfordeterminingthefairvalueoffinancialassetsandfinancialliabilitiesFairvaluereferstothepricethatamarketparticipantmustpaytosellortransferaliabilityinanorderlytransactionthatoccursonthemeasurementdate.Ifthereisanactivemarketforfinancialinstruments,theCompanywilldeterminetheirfairvaluebyquotingpricesintheactivemarket.Quotesinactivemarketsrefertopricesthatareeasilyobtainedfromexchanges,brokers,tradeassociations,pricingserviceagencies,etc.onaregularbasis,andrepresentthepricesofmarkettransactionsthatactuallyoccurinfairtransactions.Forfinancialinstrumentswithactivemarket,theCompanyadoptsvaluationtechnologytodeterminetheirfairvalues.Valuationtechniquesincludereferencetopricesusedinrecentmarkettransactionsbypartiesfamiliarwiththesituationandwillingtotrade,andreferencetocurrentfairvaluesofotherfinancialinstrumentsthataresubstantiallythesame,discountedcashflowmethod,optionpricingmodel,etc.Invaluation,theCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandsupportedbysufficientdataandotherinformationtoselectinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinthetransactionsofrelatedassetsorliabilities,andgiveprioritytotheuseofrelevantobservableinputvaluesasfaraspossible.Unallowablevaluesareusediftherelevantobservableinputvaluesarenotavailableorarenotpracticable.
7.OurownequityinstrumentsEquityinstrumentsrefertocontractsthatcanproveownershipoftheCompany'sresidualequityinassetsafterdeductingallliabilities.Theissuance(includingrefinancing),repurchase,saleorcancellationofequityinstrumentsbytheCompanyaretreatedaschangesinequity,andtransactioncostsrelatedtoequitytransactionsaredeductedfromequity.TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.
11.NotesreceivableTheCompanyshallmeasurelosspreparationforNotesreceivableaccordingtotheamountofanticipatedcreditlossequivalenttotheentireduration.Basedonthecreditriskcharacteristicsofbillsreceivable,theyaredividedintodifferentcombinations:
Items
| Items | Basisfordeterminingcombination |
| Bankacceptance | Thiscombinationisareceivablebankacceptancebill. |
| Commercialacceptancebills | Thiscombinationisacommercialacceptancebillreceivable |
12.AccountsReceivable
TheCompanymeasuresthelossreserveforreceivablesbyanamountequivalenttotheexpectedcreditlossduringtheduration.Inregardtoaccountsreceivablewithsignificantfinancingcomponents,theCompanyshallchoosetomeasurelosspreparationaccordingtotheamountequivalenttotheexpectedcreditlosswithinthedurationallthetime.
Inadditiontotheaccountsreceivableforwhichcreditriskisassessedindividually,agingisusedasthecreditriskcharacteristictomeasurelossreserve.
Items
| Items | Basisfordeterminingcombination |
| Agingportfolio | Thecreditriskischaracterizedbytheagingofreceivables. |
13.Receivablefinancing
Forbillsreceivableandaccountsreceivableclassifiedasthosemeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theportionwithself-financingperiodwithinoneyear(includingoneyear)islistedasreceivablesfinancing;Iftheperiodofself-acceptanceismorethanoneyear,itshallbelistedasothercreditor'srightsinvestment.Forrelevantaccountingpolicies,pleaserefertoNoteIII,(10)"FinancialInstruments"andNoteV,(10)"ImpairmentofFinancialinstruments".
14.Otheraccountreceivable
Determinationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivables
TheCompanyhasmeasuredtheimpairmentlossbasedontheamountofexpectedcreditlossesinthenext12monthsortheentireduration,basedonwhetherthecreditriskofotherreceivableshasincreasedsignificantlysincetheinitialrecognition.
Inadditiontotheotheraccountsreceivablewhichassessesthecreditriskindividually,theyaredividedintodifferentportfoliosbasedontheircreditriskcharacteristics:
| Items | Basisfordeterminingcombination |
| Interestreceivable | Thiscombinationisinterestreceivable |
| Dividendreceivable | Thiscombinationisdividendreceivable |
| Otherreceivable | Thiscombinationisallkindsofdailyaccountsreceivable |
15.Inventory
1.InvestoriesclassInventoryshallincludethefinishedproductsorgoodsavailableforsaleduringdailyactivities,theproductsintheprocessofproduction,thestuffandmaterialconsumedduringtheprocessofproductionortheservicesoffered.2．Valuationmethodofinventoryissued
Thecompanycalculatesthepricesofitsinventoriesaccordingtotheweightedaveragesmethod
3.RecognitionCriteriafortheNetRealizableValueofDifferentCategoryofInventoryandWithdrawingMethodofInventoryFallingPriceReservesTheinventoryshallbemeasuredbyuseofthelowerbetweenthecostandthenetrealizablevalueandtheinventoryfallingpricereservesshallbewithdrawnasperthegapofsingleinventorycostminusthenetrealizablevalueatthebalancesheetdate.Thenetrealizablevaluereferstotheamountsthattheestimatedsalepriceofinventoryminustheestimatedcostsreadytohappentillthecompletionofworks,theestimatedsellingexpensesandtherelevantexpensesoftaxation.Thecompanyshallrecognizethenetrealizablevalueofinventorybasedontheacquiredunambiguousevidenceandinviewofthepurposetoholdtheinventory,theinfluenceofmattersafterthebalancesheetdateandotherfactors.Thenetrealizablevalueofinventorydirectlyforsaleshallberecognizedaccordingtotheamountsoftheestimatedsalepriceoftheinventoryminustheestimatedsaleexpensesandtherelevantexpensesoftaxationduringtheprocessofnormalproductionandoperation.Thenetrealizablevalueofinventorythatrequiredtoconductprocessingshallberecognizedaccordingtotheamountsoftheestimatedsalepriceofthefinishedproductsminustheestimatedcostsreadytohappentillthecompletionofworks,theestimatedsellingexpensesandtherelevantexpensesoftaxation.Onthebalancesheetdate,thenetrealizablevalueshallberespectivelydefinedforthepartialagreedwiththecontractpriceandotherswithoutthecontractpriceinthesameinventory,andtheamountsoftheinventoryfallingpricereserveswithdrawnorreturnedshallberespectivelyrecognizedincomparisonwiththeircorrespondingcosts.
4.InventorySystem:AdoptsthePerpetualInventorySystem5．Amortizationmethodforlowcostandshort-livedconsumableitemsandpackagingmaterials
（1）Lowcostandshort-livedconsumableitemsLowcostandshort-livedconsumableitemsareamortizedusingimmediatewrite-offmethod。
（2）PackagingmaterialsPackagingmaterialsareamortizedusing
16.Contractassets
TheCompanyliststhecustomer'sunpaidcontractconsiderationforwhichtheCompanyhasfulfilleditsperformanceobligationsaccordingtothecontract,andwhichisnottherighttocollectmoneyfromcustomersunconditionally(thatis,onlydependingonthepassageoftime)asacontractassetinthebalancesheet.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunderdifferentcontractsarenotoffset.
17.Contractassets
(1)Methodfordeterminingassetamountrelatedtocontractcost
Assetsrelatedtocontractcostsincludecontractacquisitioncostsandcontractperformancecosts.
Thecontractperformancecost,thatis,thecostincurredbythecompanyfortheperformanceofthecontract,whichdoesnotfallwithinthescopeofotheraccountingstandardsforbusinessenterprisesandmeetsthefollowingconditionsatthesametime,isrecognizedasanassetforcontractperformancecost:Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(or
similarexpenses),costsexplicitlybornebycustomers,andothercostsincurredonlybecauseofthecontract;ThiscostincreasestheresourcesoftheCompanyforfulfillingitsperformanceobligationsinthefuture;Thecostisexpectedtoberecovered.Thecontractacquisitioncost,thatis,theincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,isrecognizedasanassetforcontractacquisitioncost;Iftheamortizationperiodofthisassetdoesnotexceedoneyear,itwillbeincludedinthecurrentprofitsandlossesinwhenitoccurs.Incrementalcostreferstothecostthatwillnothappenifthecompanydoesnotobtainthecontract(suchassalescommission,etc.).Otherexpenses(suchastravelexpensesthatwillbeincurredregardlessofwhetherthecontractisobtainedornot)incurredbytheCompanyinordertoobtainthecontractareincludedinthecurrentprofitsandlosseswhentheyoccur,exceptthoseexplicitlybornebythecustomer.
(2)AmortizationofassetsrelatedtocontractcostsTheassetsrelatedtothecontractcostshallbeamortizedonthesamebasisastherevenuerecognitionofgoodsorservicesrelatedtotheassets,andshallbeincludedinthecurrentprofitsandlosses.
(3)ImpairmentofassetsrelatedtocontractcostIfthebookvalueoftheassetrelatedtothecontractcostishigherthantheexpectedresidualconsiderationfortransferringthegoodsorservicesrelatedtotheassetminustheestimatedcosttobeincurred,thecompanywillmakeprovisionforimpairmentoftheexcessandrecognizeitastheassetimpairmentloss.Ifthefactorsofimpairmentinpreviousperiodschangelater,sothattheremainingconsiderationexpectedtobeobtainedbytransferringthegoodsorservicesrelatedtotheassetminustheestimatedcoststobeincurredishigherthanthebookvalueoftheasset,theoriginalprovisionforimpairmentofassetsshallbereversedandincludedinthecurrentprofitsandlosses,butthebookvalueoftheassetafterreversalshallnotexceedthebookvalueoftheassetonthereversaldateassumingnoaccrualforimpairmentprovision.
18.Held-for-saleassets
Ifthecompanyrecoversitsbookvaluemainlybysaleofnon-currentasset(includingexchangeofnon-monetaryassetsofcommercialnatureandsimilarlyhereinafter),insteadofcontinueduseofonenon-currentassetordisposalgroup,whichshallbeincludedintoavailable-for-sale.Inspecificstandards,thefollowingconditionsshallbemetatthesametime:Onenon-currentassetordisposalgroupisavailableforsaleatalltimesundercurrentstatusdependingonstandardpracticeofsellingtheminsimilartransactions;thecompanyhasmadearesolutiononthesaleplanandgaineddefinitivepurchasecommitments;thesaleisexpectedtobefinishedwithinoneyear.Inwhich,thedisposalgroupreferstoonesetofassetsthatmaybedisposedasawholealongwithotherassetsbysaleorotherwaysinonedealandtheliabilitytransferredandrelateddirectlytosuchassets.IftheassetgrouporcombinationofassetgroupunderaccounttitledisposalgroupamortizesthegoodwillobtainedfrombusinesscombinationinaccordancewithNo.8ofAccountingStandardsforBusinessEnterprises--AssetImpairment,thedisposalgroupshallincludethegoodwillamortizedtoit.
Whenthecompany’sinitialmeasurementorre-measurementonthebalancesheetdateisclassifiedintoavailable-for-salenon-currentassetanddisposalgroup,thebookvalueshallbewrittendowntothenetamountoffairvalueminussellingexpensesifitishigherthanthenetamountoffairvalueminussellingexpenses,thewrite-downshallbeconfirmedastheassetsimpairmentlossandincludedincurrentprofitsandlosses,meanwhiletheavailable-for-saleassetdepreciationreservesshallbeaccrued.Forthedisposalgroup,theassetimpairmentlossshallbewrittenoffproratathebookvalueofeachnon-currentassetthatisapplicabletoNo.42ofAccountingStandardsforBusinessEnterprises:Available-for-saleNon-currentAssets,DisposalGroupandDiscontinuedOperations(hereinafterreferredtoas“Available-for-saleruleformeasurement”)afterdeductingthe
bookvalueofgoodwillinit.
Ifthenetamountofthefairvalueofavailable-for-saledisposalgroupminussellingexpensesincreasesafterthebalancesheetdate,thepreviouswrite-downsshallberecoveredandreversedinassetimpairmentlossofnon-currentassetsthatareapplicabletoavailable-for-saleruleformeasurementafterbeingincludedintoavailable-for-saleaccounttitle,theamountofreversalshallbeincludedincurrentprofitsandlossesandincreasedprorataitsbookvaluebasedontheproportionofthebookvalueofeachnon-currentassetinthedisposalgroupthatisapplicabletoavailable-for-saleruleformeasurementexceptforgoodwill;thebookvalueofwritten-offgoodwillandtheassetimpairmentlossconfirmedbeforethenon-currentassetspecifiedinavailable-for-saleruleformeasurementisclassifiedintoavailable-for-saleassetmustnotbereversed.Theavailable-for-salenon-currentassetsorthenon-currentassetsinthedisposalgroupshallnotbeaccrueddepreciationoramortization,theinterestofdebitinavailable-for-saledisposalgroupandotherexpensesshallcontinuetobeconfirmed.Thenon-currentassetwillnolongerbeincludedintoavailable-for-salecategoryorwillberemovedfromtheavailable-for-saledisposalgroupifitorthedisposalgrouphasnolongersatisfiedtheconditionsforclassifyingavailable-for-saleassetsandmeasuredasperthelowerof:(1)bookvalueofthenon-currentassetbeforebeingclassifiedintoavailable-for-saleassetadjustedonthebasisofthedepreciation,amortizationorimpairmentthatshallbeconfirmedontheassumptionthatthenon-currentassetisnotincludedintoavailable-for-saleaccounttitle;
(2)Recoverableamount.
19.Creditor'srightsinvestment
Creditor'srightsinvestmentmainlyaccountsforbondinvestmentmeasuredbyamortizedcost,etc.TheCompanyhasmeasuredtheimpairmentlossbasedontheamountofexpectedcreditlossesinthenext12monthsortheentireduration,basedonwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.
20.OtherCreditor'srightsinvestment
Otherdebtinvestmentsaremainlyaccountedforasbondinvestmentsmeasuredatfairvalueandtheirchangesareincludedinothercomprehensiveincome.TheCompanyhasmeasuredtheimpairmentlossbasedontheamountofexpectedcreditlossesinthenext12monthsortheentireduration,basedonwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.
21.Long-termaccountreceivable
None
22.Long-termequityinvestmentsLong-termequityinvestmentsreferredtointhissectionrefertotheCompanyinvestedentityhascontrol,jointcontrolorsignificantinfluenceoverthelong-termequityinvestments.TheCompanyinvesteddoesnothavecontrol,jointcontrolorsignificantinfluenceoverthelong-termequityinvestmentsasfinancialassetsavailableforsaleoratfairvalueandthechangesincludedfinancialassetsthroughprofitorloss.JointcontrolistheCompanycontroloveranarrangementinaccordancewiththerelevantstipulationsarecommon,relatedactivitiesandthearrangementmustbeaftersharingcontrolparticipantsagreedtothe
decision-making.SignificantinfluenceistheCompanysfinancialandoperatingpoliciesoftheentityhastherighttoparticipateindecision-making,butcannotcontrolorwithotherpartiesjointcontroloverthosepolicies.
1.DeterminationofInvestmentcostThecostofalong-termequityinvestmentacquiredthroughbusinesscombinationundercommoncontrolismeasuredattheacquirer'sshareofthecombinationdatebookvalueoftheacquiree'snetequityintheultimatecontroller'sconsolidatedfinancialstatements.Thedifferencebetweenthecostandbookvalueofcashpaid,non-monetaryassetstransferredandliabilitiesassumedisadjustedtocapitalreserves,andtoretainedearningsifcapitalreservesisinsufficient.Iftheconsiderationistransferredbywayofissuingequityinstruments,thefacevalueoftheequityinstrumentsissuedisrecognisedinsharecapitalandthedifferencebetweenthecostofthefacevalueoftheequityinstrumentsissuedisadjustedtocapitalreserves,andtoretainedearningsifcapitalreservesisinsufficient.Thecostofalong-termequityinvestmentacquiredthroughbusinesscombinationnotundercommoncontrolisthefairvalueoftheassetstransferred,liabilitiesincurredorassumedandequityinstrumentsissued.(Fortheequityofthecombinedpartyundercommoncontrolobtainedstep-by-stepthroughmultipletransactionsandthebusinesscombinationundercommoncontrolultimatelyformed,thecompanyshouldrespectivelydisposeallthetransactionsifbelongtothepackagedeal.Forthepackagedeal,allthetransactionswillbeconductedtheaccountingtreatmentasthedealwithacquisitionofcontrol.Forthenon-packagedeal,thesharesofthebookvalueofthestockholders’equity/owners’equityofthecombinedpartyintheconsolidatedfinancialstatementsoftheultimatecontrolpartyshallbeastheinitialinvestmentcostofthelong-termequityinvestment,andthecapitalreservesshallbeadjustedforthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthesumofthebookvalueoflong-termequityinvestmentbeforemergingandthatofnewconsiderationpaymentobtainedonthemergerdate,ortheretainedearningsshallbeadjustedifthecapitalreservesareinsufficienttooffset.Asfortheequityinvestmentheldbeforethemergerdate,theaccountingtreatmentwillnotbeconductedtemporarilyforothercomprehensiveincomeaccountedbyequitymethodorconfirmedforthefinancialassetsavailableforsale.)Allexpensesincurreddirectlyassociatedwiththeacquisitionbytheacquirer,includingexpenditureofaudit,legalservices,valuationandconsultancyandotheradministrativeexpenses,arerecognisedinprofitorlossfortheperiodduringwhichtheacquisitionoccurs.Forthemergerofenterprisesnotunderthesamecontrolthroughgainingthesharesofthecombinedenterprisebymultiplestepsofdeals,itshalldealwithitinthefollowingtwowaysdependingonthatifitbelongsto"apackagedeal":ifitbelongsto"apackagedeal",itshalldealwithallthedealsasoneobtainingthecontrolpower;ifitdoesnotbelongto"apackagedeal",itshall,onthedateofmerger,regardthesumofbookvalueoftheowner’soriginalequityofthemergedenterpriseandthenewlyincreasedinvestmentcostastheinitialcostofthelong-termequityinvestment.Forthesharesoriginallyheldbythisenterpriseaccountedforbyweightedequitymethod,therelevantothercomprehensiveincomeshallnotbeaccountedfortemporarily.Iftheequityinvestmentheldoriginallycanbeclassifiedasthefinancialassetsforsale,thedifferencebetweenthefairvalueandthebookvalue,andthevariationintheaccumulativefairvalueofothercomprehensivereturnsrecordedoriginallywillbetransferredintothecurrentprofitsandlosses.Allexpensesincurreddirectlyassociatedwiththeacquisitionbytheacquirer,includingexpenditureofaudit,legalservices,valuationandconsultancyandotheradministrativeexpenses,arerecognisedinprofitorlossfortheperiodduringwhichtheacquisitionoccurs.Long-termequityinvestmentsacquirednotthroughbusinesscombinationaremeasuredatcostoninitialrecognition.Dependingonthewayofacquisition,thecostofacquisitioncanbethetotalcashpaid,thefairvalueofequityinstrumentissued,thecontractprice,thefairvalueorbookvalueoftheassetsgivenawayinthecaseof
non-monetaryassetexchange,orthefairvalueoftherelevantlong-termequityinvestments.Thecostofacquisitionofalong-termequityinvestmentacquirednotthroughbusinesscombinationalsoincludesalldirectlyassociatedexpenses,applicabletaxesandfees,andothernecessaryexpenses.Whenthesignificantimpactorthejointcontrolbutnon-controlontheinvestedpartycanbeimplementedduetotheadditionalinvestment,thelong-termequityinvestmentcostisthesumofthefairvalueoftheequityinvestmentoriginallyheldandthenewinvestmentcostsbasedontherecognitionof“AccountingStandardsforEnterprisesNo.22–RecognitionandMeasurementofFinancialInstruments”.
2.SubsequentMeasurementTobeinvestedjointcontrol(exceptconstitutecommonoperator)orlong-termequityinvestmentssignificantinfluenceareaccountedforusingtheequitymethod.Inaddition,theCompany'sfinancialstatementsusingthecostmethodofaccountingforlong-termequitycanexercisecontrolovertheinvestee.
(1)Costmethodofaccountingforlong-termequityinvestmentsUnderthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Exceptforcashdividendsorprofitsdeclaredbutnotyetpaidthatareincludedinthepriceorconsiderationactuallypaiduponacquisitionofthelong-termequityinvestment,investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.
(2)Equitymethodofaccountingforlong-termequityinvestmentsWhenusingtheequitymethod,theinitialinvestmentcostoflong-termequityinvestmentexceedstheinvestor'snetidentifiableassetsofthefairshareoftheinvestmentvalue,donotadjusttheinitialinvestmentcostoflong-termequityinvestment;theinitialinvestmentcostislessthantheinvesteeunitshareofidentifiablenetassetsatfairvalue,thedifferenceisrecognizedinprofitorloss,whilethelong-termequityinvestmentadjustmentcosts.Wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheinvestingenterprise’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsatthetimeofacquisition,noadjustmentshallbemadetotheinitialinvestmentcost.Thecarryingamountofanlong-termequityinvestmentmeasuredusingtheequitymethodisadjustedbytheCompany'sshareoftheinvestee'snetprofitandothercomprehensiveincome,whichisrecognisedasinvestmentincomeandothercomprehensiveincomerespectively.Thecarryingamountofanlong-termequityinvestmentmeasuredusingtheequitymethodisreducedbyprofitdistributionorcashdividendsannouncedbytheinvestee.Thecarryingamountofanlong-termequityinvestmentmeasuredusingtheequitymethodisalsoadjustedbytheinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistribution,whichisadjustedtocapitalreserves。Thenetprofitoftheinvesteeisadjustedbythefairvalueoftheinvestee'sidentifiableassetsasatacquistion.ThefinancialstatementsandhencethenetprofitandothercomprehensiveincomeofaninvesteewhichdoesnotadoptaccountingpoliciesoraccountingperioduniformwiththeCompanyisadjustedbytheCompany'saccountingpoliciesandaccountingperiod.TheCompany'sshareofunrealisedprofitorlossarisingfromrelatedpartytransactionsbetweentheCompanyandanassociateorjointventureisdeductedfrominvestmentincome.UnrealisedlossarisingfromrelatedpartytransactionsbetweentheCompanyandanassociateorjointventurewhichisassociatedwithassetimpairmentisnotadjusted.WhereassetstransferredtoanassociateorjointventurewhichformpartoftheCompany'sinvestmentintheinvesteebutwhichdoesnotenabletheCompanyobtaincontrolovertheinvestee,thecostoftheadditionalinvestmentacquiredismeasuredatthefairvalueofassetstransferredandthedifferencebetweenthecostoftheadditionalinvestmentandthebookvalueoftheassetstransferredisrecognisedinprofitorloss.Whereassetstransferredtoanassociateorjointventureformanoperation,thedifferencebetweentheconsiderationreceivedandthebookvalueoftheassetstransferredinrecognisedinprofitorloss.Whereassetstransferredfromanassociateorjointventureform
anoperation,thetransactionisaccountedforinaccordancewithCAS20-BusinessCombination,anygainorlossisreocgnisedinprofitorloss.TheCompany'sshareofaninvestee'snetlossislimitedbythesumofthebookvalueofthelong-termequityinvestmentandothernetlong-terminvestmentsintheinvestees.WheretheCompanyhasobligationtoshareadditionalnetlossoftheinvestee,theestimatedshareoflossrecognisedasaccruedliabilitiesandinvestmentloss.WheretheCompanyhasunrecognisedshareoflossoftheinvesteewhentheinvesteegeneratesnetprofit,theCompany'sunrecognisedshareoflossisreducedbytheCompany'sshareofnetprofitandwhentheCompany'sunrecognisedshareorlossiseliminatedinfull,theCompany'sshareofnetprofit,ifany,isrecognisedasinvestmentincome.
(3)AcquisitionofminorityinterestThedifferencebetweennewlyincreasedequityinvestmentduetoacquisitionofminorityinterestsandportionofnetassetcumulativelycalculatedfromtheacquisitiondateisadjustedascapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,theexcessareadjustedagainstreturnedearnings.
(4)Disposaloflong-termequityinvestmentWheretheparentcompanydisposeslong-terminvestmentinasubsidiarywithoutachangeincontrol,thedifferenceinthenetassetbetweentheamountofdisposedlong-terminvestmentandtheamountoftheconsiderationpaidorreceivedisadjustedtotheowner’sequity.Ifthedisposaloflong-terminvestmentinasubsidiaryinvolveslossofcontroloverthesubsidiary,therelatedaccountingpoliciesinNoteapplies.Fordisposaloflong-termequityinvestmentsinanysituationotherthanthefore-mentionedsituation,thedifferencebetweenthebookvalueoftheinvestmentdisposedandtheconsiderationreceivedisrecognisedinprofitorloss.Theinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistributionisreocgnisedinprofitorlossproportionatetothedisposal.Wherealong-termequityinvestmentismeasuredbytheequitymethodbothbeforeandafterpartdisposaloftheinvestment,cumulativeothercomprehensiveincomerelevanttotheinvestmentrecognisedpriortotheacquistionistreatedinthesamemannerthattheinvesteedisposestherelevantassetsorliabilitiesproportionatetothedisposal.Theinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistributionisreocgnisedinprofitorlossproportionatetothedisposal.Wherealong-termequityinvestmentismeasuredatcostbothbeforeandafterpartdisposaloftheinvestment,cumulativeothercomprehensiveincomerelevanttotheinvestmentrecognised,asaresultofaccountingbyequitymethodorrecognitionandmeasurementprinciplesapplicabletofinancialinstruments,priortotheCompany'sacquisitionofcontrolovertheinvesteeistreatedinthesamemannerthattheinvesteedisposestherelevantassetsorliabilitiesandrecognisedinprofitorlossproportionatetothedisposal.Theinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistribution,asaresultofaccountingbyequitymethod,isreocgnisedinprofitorlossproportionatetothedisposal.WheretheCompany'scontroloveraninvesteeislostduetopartialdisposalofinvestmentintheinvesteeandtheCompanycontinuestohavesignificantinfluenceovertheinvesteeafterthepartialdisposal,theinvestmentinmeasuredbytheequitymethodintheCompany'sseparatefinancialstatements;wheretheCompany'scontroloveraninvesteeislostduetopartialdisposalofinvestmentintheinvesteeandtheCompanyceasestohavesignificantinfluenceovertheinvesteeafterthepartialdisposal,theinvestmentinmeasuredinaccordancewiththerecognitionandmeasurementprinciplesapplicabletofinancialinstrumentsintheCompany'sseparatefinancialstatementsandthedifferencebetweenthefairvalueandthebookvalueoftheremaininginvestmentatthedateof
lossofcontrolisrecognisedinprofitorloss.Cumulativeothercomprehensiveincomerelevanttotheinvestmentrecognised,asaresultofaccountingbyequitymethodorrecognitionandmeasurementprinciplesapplicabletofinancialinstruments,priortotheCompany'sacquisitionofcontrolovertheinvesteeistreatedinthesamemannerthattheinvesteedisposestherelevantassetsorliabilitiesonthedateoflossofcontrol.Theinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistribution,asaresultofaccountingbyequitymethod,isreocgnisedinprofitorlosswhencontrolislost.Wheretheremaininginvestmentismeasuredbyequitymethod,thefore-mentionedothercomprehensiveincomeandotherequitymovementarerecognisedinprofitorlossproportionatetothedisposal;Wheretheremaininginvestmentismeasuredinaccordancewiththerecognitionandmeasurementprinciplesapplicabletofinancialinstruments,thefore-mentionedothercomprehensiveincomeandotherequitymovementarerecognisedinprofitorlossinfull.WheretheCompany'sjointcontrolorsignificantinfluenceoveraninvesteeislostduetopartialdisposalofinvestmentintheinvestee,theremaininginvestmentintheinvesteeismeasuredinaccordancewiththerecognitionandmeasurementprinciplesapplicabletofinancialinstruments,thedifferencebetweenthefairvalueandthebookvalueoftheremaininginvestmentatthedateoflossofjointcontrolorsignificantinfluenceisrecognisedinprofitorloss.Cumulativeothercomprehensiveincomerelevanttotheinvestmentrecognised,asaresultofaccountingbyequitymethod,priortothepartialdisposalistreatedinthesamemannerthattheinvesteedisposestherelevantassetsorliabilitiesonthedateoflossofjointcontrolorsignificantinfluence.Theinvestee'sequitymovementotherthannetprofit,othercomprehensiveincomeandprofitdistributionisreocgnisedinprofitorlosswhenjointcontrolorsignificantinfluenceislost.WheretheCompany'scontroloveraninvesteeislostthroughmultipledisposalsandthemultipledisposalsshallbeviewedasonesingletransaction,themultipledisposalsisaccountedforonesingletransactionwhichresultintheCompany'slossofcontrolovertheinvestee.Eachdifferencebetweentheconsiderationreceivedandthebookvalueoftheinvestmentdisposedisrecognisedinothercomprehensiveincomeandreclassifiedinfulltoprofitorlossatthetimewhencontrolovertheinvesteeislost.
23.InvestmentpropertyThemeasurementmodeofinvestmentpropertyThecompanyshalladoptthecostmodetomeasuretheinvestmentproperty.DepreciationorAmortizationMethodbyUseofCostMode1．ThemeasurementmodeofinvestmentpropertyTheinvestmentpropertyofthecompanyincludestheleasedlanduserights,theleasedbuildings,thelanduserightsheldandpreparedtotransferafterappreciation.Thecompanyshalladoptthecostmodetomeasuretheinvestmentproperty.
2.DepreciationorAmortizationMethodbyUseofCostModeTheleasedbuildingsoftheinvestmentpropertyinthecompanyshallbewithdrawnthedepreciationbytheservicelifeaveragemethod,andthedepreciationpolicyisthesamewiththatofthefixedassets.Thelanduserightsheldandpreparedtotransferafterappreciationintheinvestmentpropertyshallbeamortizedbythelinemethod,andthespecificaccountingpolicyissamewiththatoftheintangibleassets.
24.Fixedassets1．TheconditionsofrecognitionFixedassetsreferstothetangibleassetsthatareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagementandtheirusefullifeisinexcessofonefiscalyear.Thefixedassetscanberecognizedwhenthefollowingrequirementsareallmet:(1)theeconomicbenefitsrelevanttothefixedassetswillflowintotheenterprise.(2)thecostofthefixedassetscanbemeasuredreliably.Thefixedassetsofthecompanyincludethehousesandbuildings,thedecorationofthefixedassets,themachineryequipment,thetransportationequipment,theelectronicinstrumentandotherdevices.2．Themethodfordepreciation
Category
| Category | Themethodfordepreciation | Expectedusefullife（Year） | Estimatedresidualvalue | Depreciation |
| HouseandBuilding-Production | Straight-linemethod | 35 | 4 | 2.74 |
| HouseandBuilding-Non-Production | Straight-linemethod | 40 | 4 | 2.4 |
| DecorationofFixedassets | Straight-linemethod | 10 | 0 | 10 |
| Machineryandequipment | Straight-linemethod | 10-14 | 4 | 9.60-6.86 |
| Transportationequipment | Straight-linemethod | 8 | 4 | 12 |
| Electronicequipment | Straight-linemethod | 8 | 4 | 12 |
| Otherequipment | Straight-linemethod | 8 | 4 | 12 |
3．Cognizanceevidenceandpricingmethodoffinancialleasingfixedassets
(1)RecognitionCriteriaoftheFixedAssetsunderFinancingLeaseThefinancingleaseshallberecognizedifthefollowingoneorseveralcriteriaaremet:①theownershipoftheleasingassetsshallbetransferredtothetenantwhentheexpirationofleaseterm.②thetenanthastheoptiontopurchasetheleasingassets,andthemadepurchasepriceisexpectedtobefarlessthanthefairvalueoftheleasingassetsintheimplementationoftheoption.Thus,itcanbereasonablyrecognizedthatthetenantwillimplementtheoptionontheleasedate.③theownershipofassetsisnottransferred,buttheleasetermshallbethemostof
thelifeoftheleaseassets.④theleastpresentvalueoftheleasepaymentofthetenantandtheleastpresentvalueoftheleasereceiptsontheleasedatealmostequaltothefairvalueoftheleasingassetsontheleasedaterespectively.⑤theleasingassetshavethespecialnature,andonlythetenantcanuseifthereisnomajormodifications.
(2)ValuationofFixedAssetsAcquiredunderFinanceLeases:thefixedassetsacquiredunderfinanceleasesshallbebookkeptaccordingtothelowerbetweenthefairvalueoftheleasingassetsandtheleastleasepaymentontheleasedate.
(3)DepreciationMethodofFixedAssetsAcquiredunderFinanceLeases:thedepreciationshallbewithdrawnforthefixedassetsacquiredunderfinanceleasesasperthedepreciationpolicyofownfixedassets.
25.Constructioninprogress
1.Theprojectsunderconstructionshallberecognizedwhentheeconomicbenefitsmayflowintoandthecostcanbereliablymeasured.Meanwhile,theprojectsunderconstructionshallbemeasuredaccordingtotheactualcostoccurredbeforetheassetsarebuilttoachievetheexpectedusablecondition.
2.Theprojectsunderconstructionshallbetransferredintothefixedassetsaccordingtotheactualprojectcostswhentheexpectedusableconditionachieved.Fortheexpectedusableconditionachievedwhilethefinalaccountsforcompletedprojectsnothandledyet,theprojectsshallbetransferredintothefixedassetsaspertheestimatedvalue.Afterthefinalaccountsforcompletedprojectshandled,theoriginalestimatedvalueshallbeadjustedaspertheactualcost,buttheoriginalwithdrawndepreciationshallnotbeadjustedagain.
26.Borrowingcosts
1.RecognitionprinciplesforcapitalizingofloanexpensesBorrowingexpensesoccurredtotheCompanythatcanbeaccountedaspurchasingorproductionofassetsatisfyingtheconditionsofcapitalizing,arecapitalizedandaccountedascostofrelatedasset.Otherborrowingexpensesarerecognizedasexpensesaccordingtotheoccurredamount,andaccountedintogain/lossofcurrentterm.
2.DurationofcapitalizationofLoancosts
(1).Whenaloanexpensesatisfiesallofthefollowingconditions,itiscapitalized:
1.Expendituresonassetshavetakenplace.
2.Loancostshavetakenplace;
3.Theconstructionorproductionactivitiestomakeassetstoreachtheintendeduseorsaleofstatehavebegun.
（2）Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedbyactivitiesotherthanthosenecessarytopreparetheassetforitsintendeduseorsale,whentheinterruptionisforacontinuousperiodofmorethan3months.Borrowingcostsincurredduringtheseperiodsrecognizedasanexpenseforthecurrentperioduntiltheacquisition,constructionorproductionisresumed.
（3）Whentheconstructionorproductionmeetstheintendeduseorsaleofstateofcapitalizationconditions,theLoancostsshouldstopcapitalization.
3.ComputationMethodforCapitalizationRateandAmountofBorrowingCostsWithregardtothespecialborrowingsforthepurchaseandconstructionofqualifiedassets,thecapitalizedinterestamountshallberecognizedaccordingtotheamountoftheinterestcostforthespecialborrowingsactually
occurredduringthecurrentperiod(includingtheamortizationofdiscountorpremiumrecognizedaspertheeffectiveinterestmethod)minustheinterestincomeacquiredaftertheborrowingsdepositinbankortheinvestmentincomeobtainedfromthetemporaryinvestment.Forthegeneralborrowingsforthepurchaseandconstructionofqualifiedassets,thecapitalizedinterestamountofthegeneralborrowingsshallbecomputedandrecognizedaccordingtotheweightedaverageofaccumulativeassetexpensebeyondtheexpenseofthespecialborrowings,multiplyingthecapitalizationrateofgeneralborrowings.
27.BiologicalAssetsNotapplicable
28.Oil&GasassetsNotapplicable
29.RighttouseassetsNotapplicable
30.Intangibleassets
1.ValuationMethod,ServiceLifeandImpairmentTestofIntangibleAssets
(1)Theintangibleassetsincludethelanduserights,theprofessionaltechnologyandthesoftware,whichareconductedtheinitialmeasurementasperthecost.
(2)Theservicelifeofintangibleassetsisanalyzedandjudgedwhenofthecompanyacquirestheintangibleassets.Forthefiniteservicelifeoftheintangibleassets,theyearsofservicelifeorthequantityofservicelifeformedandthenumberofsimilarmeasurementunitshallbeestimated.Ifthetermofeconomicbenefitsoftheintangibleassetsbroughtforthecompanyisnotabletobeforeseen,theintangibleassetsshallberecognizedasthatwiththeindefiniteservicelife.
(3)EstimationMethodofServicelifeofIntangibleAssets
1)Fortheintangibleassetswiththefiniteservicelife,thecompanyshallgenerallyconsiderthefollowingfactorstoestimatetheservicelife:①thenormalservicelifeofproductsproducedwiththeassets,andtheacquiredinformationoftheservicelifeofsimilarassets.②theestimationofthecurrentstageconditionsandthefuturedevelopmenttrendsintheaspectsoftechnologyandcraft.③thedemandoftheproductsproducedbytheassetsortheofferedservicesinthemarket.④theexpectationofactionsadoptedbycurrentorpotentialcompetitors.
⑤theexpectedmaintenanceexpenseforsustainingthecapacitytoeconomicbenefitsbroughtbytheassetsandtheabilitytotherelevantexpenseexpected.⑥therelevantlawprovisionorthesimilarlimittothecontroltermoftheassets,suchasthelicensedusetermandtheleaseterm.⑦thecorrelationwiththeservicelifeofotherassetsheldbythecompany.
2)IntangibleAssetswithIndefiniteServiceLife,JudgmentCriteriaonIndefiniteServiceLifeandReviewProcedureofItsServiceLifeThecompanyshallbeunabletoforeseethetermofeconomicbenefitsbroughtbytheassetsforthecompany,or
theindefinitetermofintangibleassetsrecognizedastheindefiniteservicelifeofintangibleassets.ThejudgmentcriteriaofIndefiniteservicelife:①asfromthecontractualrightsorotherlegalrights,buttheindefiniteservicelifeofcontractprovisionorlegalprovisions.②unabletojudgethetermofeconomicbenefitsbroughtbytheintangibleassetsforthecompanyaftertheintegrationofinformationinthesameindustryortherelevantexpertargumentation.Attheendofeveryyear,thereviewshouldbemadefortheservicelifeoftheintangibleassetswiththeindefiniteservicelife,andtherelevantdepartmentthatusestheintangibleassets,shallconductthebasicreviewbythemethodfromuptodown,inordertoevaluatethejudgmentcriteriaoftheindefiniteservicelifeifthereisthechange.
(4)AmortizationMethodofIntangibleAssetsValueTheintangibleassetswiththefiniteservicelifeshallbesystematicallyandreasonablyamortizedaccordingtotheexpectedimplementationmodeoftheeconomicbenefitsrelatedtotheintangibleassetsduringtheservicelife,andthelinemethodshallbeadoptedtoamortizefortheintangibleassetsunabletoreliablyrecognizetheexpectedimplementationmode.Thespecificservicelifeisasfollows:
Items
| Items | Amortizationlifetime（Year） |
| Landuseright | 50years |
| Proprietarytechnology | 15years |
| Software | 5years |
Theintangibleassetswiththeindefiniteservicelifeshallnotbeamortized,andthecompanyshallmakethereviewoftheservicelifeoftheintangibleassetsduringeveryaccountingperiod.
(5)Ifthereistheimpairmentfortheintangibleassetswiththedefiniteservicelifeonthebalancesheetdate,thecorrespondingimpairmentprovisionshallbewithdrawnaccordingtothedifferencebetweenthebookvalueandtherecoverableamount.Theintangibleassetswiththeindefiniteservicelifeandwithouttheusableconditionshallbeconductedtheimpairmenttesteveryyearwhethertheimpairmentexists.
2.AccountingPolicyofInternalResearchandDevelopmentExpenditureTheexpenditureforinternalresearchanddevelopmentprojectinthestudystageshallberecordedintothecurrentprofitsandlosseswhenoccurring.Theexpenditureforinternalresearchanddevelopmentprojectinthedevelopmentstageshallberecognizedastheintangibleassetswhenthefollowingrequirementsaresimultaneouslymet:(1)thecompletionoftheintangibleassetsisavailableforuseorsale,andfeasibleinthetechnology.(2)theintentiontocompletetheintangibleassetsanduseorsale.(3)themethodfortheeconomicbenefitsproducedbytheintangibleassets,includingtheevidencethatshowsthereexiststhemarketfortheproductsgeneratedfromtheintangibleassetsortheintangibleassetshavethemarket.Theintangibleassetsareusedinternallywhichshowstheserviceability.(4)therearesufficienttechnology,financialresourcesandotherresourcestosupportthecompletionofthedevelopmentoftheintangibleassets,andthereisabilitytouseorselltheintangibleassets.(5)theexpenditurebelongtothedevelopmentstageoftheintangibleassetscanbereliablymeasured.Thespecificcriteriaforthedivisionoftheinternalresearchanddevelopmentprojectsattheresearchstageandthe
developmentstageofthecompanyisasfollows:(1)theinvestigationstageplannedtoobtainthenewtechnologyandknowledge,shallberecognizedastheresearchstage,whichhasthefeaturesofplanningandexploration.(2)beforethecommercialmanufactureanduse,theresearchresultsorotherknowledgeshouldbeappliedfortheplanordesign,inordertoproducetheneworimprovedstageswithsubstantialmaterials,devicesandproducts,whichshouldberecognizedasthedevelopmentstage,andthisstagehasthefeaturesofpertinenceandmorepossibilitytocreatetheachievement.
31.Long-termAssetsImpairmentThecompanyshallmakejudgmentofthelong-termassetsincludingthelong-termequityinvestment,theinvestmentpropertymeasuredbythecostmode,thefixedassetsandtheprojectsunderconstructionifthereispossibleimpairmentonthebalancesheetdate.Ifthereexiststheevidenceshowsthatthelong-termassetshavetheimpairment,theimpairmenttestshouldbeconducted,andtherecoverableamountshouldbeestimated.Theimpairmentshallbeconfirmedifthereexistsafterthecomparisonoftheestimatedrecoverableamountoftheassetsanditsbookvalue,andiftheassetsimpairmentprovisionshallbewithdrawntorecognizethecorrespondingimpairmentlosses.Theestimationoftherecoverableamountofassetsshouldbeconfirmedaccordingtothehigheronebetweenthenetamountofthefairvalueminusthedisposalcostsandthepresentvalueofthecashflowofassetsexpectedinthefuture.Thecompanyshallconducttheimpairmenttestatleasteveryyearforthegoodwillestablishedbythebusinesscombinationandtheintangibleassetswiththeindefiniteservicelifewhetherthereexiststheimpairment.Theimpairmentlossoflong-termassetsafterrecognizedshouldn’tbereversedinthefutureaccountingperiod.
32.Long-termamortizableexpensesDeferredchargesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentandsubsequentperiod(togetherofmorethanoneyear).Thelong-termunamortizedexpenseshallbebookkeptaspertheactualamountoccurred,andshallbeaveragelyamortizewithinthebenefitperiodorthespecifiedperiod.Ifthelong-termunamortizedexpensecan’tmakethebenefitsforthefutureaccountingperiod,theamortizedvalueoftheunamortizedprojectshallallbetransferredintothecurrentprofitsandlosses.
33.Contractliabilities
ContractliabilitiesrefertotheobligationoftheCompanytotransfergoodstocustomersforthereceivedorreceivableconsiderationfromcustomers.IfthecustomerhaspaidthecontractconsiderationortheCompanyhasobtainedtheunconditionalcollectionrightbeforetheCompanytransfersthegoodstothecustomer,theCompanywilllistthereceivedorreceivableamountasthecontractliabilityattheearlieroftheactualpaymentmadebythecustomerandtheduedateforpayment.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunderdifferentcontractsarenotoffset.39.Income
34.Remuneration
1.AccountingTreatmentMethodofShort-termCompensationDuringtheaccountingperiodofserviceprovisionofstaff,thecompanyshallregardtheactualshort-term
compensationastheliabilityandrecordintothecurrentprofitsandlossesortherelevantassetscostasperthebeneficiary.Ofwhich,thenon-monetarywelfareshallbemeasuredasperthefairvalue.
2.AccountingTreatmentMethodofSeveranceBenefitPlansTheseverancebenefitplanscanbedividedintothedefinedcontributionplanandthedefinedbenefitplanaccordingtotheriskandobligationborne.
(1)TheDefinedContributionPlanThecontributiondepositsthatpaidtotheindividualsubjectfortheservicesprovidedbythestaffsonthebalancesheetdateduringtheaccountingperiod,shallberecognizedastheliability,andrecordedintothecurrentprofitsandlossesortherelevantassetcostsasperthebeneficiary.
(2)TheDefinedBenefitPlanThedefinedbenefitplanistheseverancebenefitplanswiththeexceptionofthedefinedcontributionplans.
1)Basedontheexpectedcumulativewelfareunitmethod,thecompanyshalladoptunbiasedandmutuallyconsistentactuarialassumptionstomakeevaluationofdemographicvariablesandfinancialvariables,measureanddefinetheobligationsarisingfromthebenefitplan,anddeterminetheperiodoftherelevantobligations.Thecompanyshalldiscountallthedefinedbenefitplanobligations,includingtheobligationwithintwelvemonthsaftertheendoftheannualreportduringtheexpectedservicesprovisionofemployee.Thediscountrateadoptedindiscountingshallberecognizedaccordingtothebondsmatchedwiththedefinedbenefitplanobligationtermandthecurrencyatthebalancesheetdateorthemarketreturnofhigh-qualitycorporatebondsintheactivemarket.
2)Ifthereexisttheassetsforthedefinedbenefitplan,thedeficitorsurplusarisingfromthepresentvalueofthedefinedbenefitplanobligationsminusthefairvalueofthedefinedbenefitplanassetsarerecognizedasthenetliabilityorthenetassetsofthedefinedbenefitplan.Ifthereexiststhesurplusofthedefinedbenefitplan,theloweronebetweenthesurplusofthedefinebenefitplanandtheupperlimitofassetsshallbeusedtomeasurethenetassetsofthedefinedbenefitplan.Theupperlimitofassetsreferstothepresentvalueofeconomicbenefitsobtainedfromtherefundofthedefinedbenefitplansorthereductionofdepositfundsoffuturedefinedbenefitplans.
3)Attheendofperiod,theemployee’spayrollcostsarisingfromthedefinedbenefitplanarerecognizedastheservicecosts,thenetinterestsonthenetliabilitiesorthenetassetsofthedefinedbenefitplan,andthechangescausedbythenetliabilitiesandthenetassetsofthedefinedbenefitplanthatre-measured.Ofwhich,theservicecostsandthenetinterestsonthenetliabilitiesorthenetassetsofthedefinedbenefitplanshallberecordedintothecurrentprofitsandlossesortherelevantassetscosts,thechangescausedbythenetliabilitiesandthenetassetsofthedefinedbenefitplanthatre-measuredshallberecordedintoothercomprehensiveincomes,whichshouldnotbeswitchedbacktotheprofitsandlossesduringthesubsequentaccountingperiod,buttheamountrecognizedfromothercomprehensiveincomescanbetransferredwithinthescopeoftherightsandinterests.
4)Theprofitorlossofonesettlementshallberecognizedwhensettlingthedefinedbenefitplan.
3.AccountingTreatmentMethodofDemissionWelfareTheemployeecompensationliabilitiesgeneratedbythedemissionwelfareshallberecognizedontheearlydateandrecordedintothecurrentprofitsandlosses:(1)whenthecompanycan’twithdrawthedemissionwelfareprovidedduetotherundownsuggestionortheterminationoflaborrelationsplans.(2)whenthecompanyrecognizesthecostsortheexpensesrelatedtothereorganizationofdemissionwelfarepayment.Theearlieronebetweenwhenthecompanycan’twithdrawtherundownsuggestionortheterminationoflabor
relationsplansatitssideandwhenthecostsrelevanttotherecombinationofdismissionwelfarepayment,shallberecognizedastheliabilitiesarisingfromthecompensationduetotheterminationoflaborrelationswithstaffandshallberecordedintothecurrentprofitsandlosses.Thencompanyshallreasonablypredictandrecognizethepayrollpayablearisingfromthedismissionwelfare.Thedismissionwelfare,whichisexpectedtofinishthepaymentwithintwelvemonthsaftertheendoftheannualreportrecognized,shallapplytotherelevantprovisionsofshort-termcompensation.Thedismissionwelfare,whichisexpectedtobeunfinishedforthepaymentwithintwelvemonthsaftertheendoftheannualreportrecognized,shallapplytotherelevantprovisionsofshort-termcompensation,shallapplytotheprovisionsrelatedtootherlong-termemployeebenefits.
4.AccountingTreatmentMethodofOtherLong-termEmployeeBenefitsIfotherlong-termemployeebenefitsofemployeesprovidedbythecompanymeettheconditionsofthedefinedcontributionplan,theaccountingtreatmentshallbemadeinaccordancewiththedefinedcontributionplan.Exceptforthese,otherlong-termbenefitsshallbemadetheaccountingtreatmentaccordingtothedefinedbenefitplan,butthechangesarisingfromthere-measurementofnetliabilitiesornetassetsofotherlong-termemployeebenefitsshallberecordedintothecurrentprofitsandlossesortherelevantassetscosts.
35.Leaseliabilities
Notapplicable
36.EstimatedLiabilities
1.RecognitionCriteriaofEstimatedLiabilitiesTheliabilitiesshallberecognizedwhenexternalguarantee,pendinglitigationorarbitration,productqualityassurance,staffreductionplan,losscontract,recombinationobligation,disposalobligationofthefixedassetsandotherpertinentbusinessesallmeetthefollowingrequirements:
(1)Theobligationisthecurrentobligationbornebythecompany.
(2)Theimplementationoftheobligationmaycausetheeconomicbenefitsoutoftheenterprise.
(3)Theamountoftheobligationcanbemeasuredreliably.
2.MeasurementMethodofEstimatedLiabilitiesTheestimatedliabilitiesshallbemadetheinitialmeasurementaccordingtothebestestimateoftheexpenditurerequiredtosettlethepresentobligation.Thereisthecontinuousscopefortherequiredexpenditure,andthebestestimatewiththesamepossibilitiesresultedfromvariousoutcomeswithinthescopeshallberecognizedaspertheintermediatevalue.Thebestestimateshouldberecognizeaccordingtothefollowingmethods:
(1)Thebestestimateshallberecognizedasperthemostpossibleamountiftherearemattersinvolvedinthesingleitem.
(2)Thebestestimateshallbecalculatedandrecognizedasperthepossibleamountiftherearemattersinvolvedinthemultipleitem.Ifthecompanypaysalltheexpensesforpayingofftheestimatedliabilities,orpartialestimatesarecompensatedbythethirdpartyorotherparties,thecompensationamountshouldbeseparatelyrecognizedastheassetswhenthereceiptofthecompensationamountisbasicallydetermined.Meanwhile,thedeterminedcompensationamount
shallnotexceedthebookvalueoftheestimatedliabilitiesrecognized.Thecompanyshallmakereviewofthebookvalueofestimatedliabilitiesatthebalancesheetdate.Ifthereisconclusiveevidencethatthebookvaluecannotreallyreflectthecurrentbestestimate,theadjustmentshallbemadeforthebookvalueinaccordancewiththecurrentbestestimate.
37.Sharepayment
1.AccountingTreatmentMethodsofSharePayment
Sharepaymentisatransactionwhichisforobtainingtheserviceprovidedbyemployeesorotherparties,wherethustheequityinstrumentisgranted,orforbearingtheliabilityconfirmedbasingontheequityinstrument.Sharepaymentisdividedintothepaymentsettledbyequitiesandthepaymentsettledbycash.
(1)SharedPaymentsettledbyEquities
Thesharepaymentsettledbyequities,whichisusedforexchangingtheserviceprovidedbyemployees,willbemeasuredaccordingtothefairvalueoftheequityinstrumentgrantedtoemployeesondateofgrant.Theamountofsuchfairvalue,underthesituationthattherightscanonlybeexercisedaftertheserviceisfinishedandthesetperformanceisachievedwithinthewaitingperiod,andbasingontheoptimumestimationforthenumberofequityinstrumentwhichexerciserightswithinthewaitingperiod,willbemeasuredaccordingtostraight-linemethodandcountedintorelevantcostsandexpenses.Whentherightscanbeexercisedimmediatelyafterbeinggranted,thepaymentwillbecountedintorelevantcostsandexpenses,andthecapitalreservewillbeincreasedcorrespondingly.
Oneachandeverybalancesheetdatewithinthewaitingperiod,theCompanywillmakeoptimumestimationsaccordingtothenewly-obtainedsubsequentinformationafterthechangesoccurredinthenumberofemployeeswhoexerciserightssoastomodifythepredictednumberoftheequityinstrumentofexercisingrights.Theinfluencefromabove-mentionedestimationswillbecountedintorelevantcostsandexpensesatthecurrentperiod,andthecorrespondingadjustmentwillbemadeforthecapitalreserve.Ifthefairvalueoftheotherparties’servicecanbereliablymeasured,theshare-basedpaymentsettledbyequitieswhichisusedforexchangingtheserviceofotherpartieswillbemeasuredaccordingtothatfairvalueondateofacquisition.Ifnot,butthefairvalueoftheequityinstrumentcanbereliablymeasured,thepaymentwillbecountedaccordingtothefairvalueoftheequityinstrumentondateofserviceacquisition,anditwillbecountedintorelevantcostsandexpenses,andtheequityoftheshareholderswillbeincreasedcorrespondingly.
(2)SharePaymentsettledbyCash
ThesharepaymentsettledbycashwillbemeasuredaccordingtothefairvalueoftheliabilityconfirmedbasingonthesharesbornebytheCompanyandotherequityinstruments.Iftherightscanbeexercisedimmediatelyafterbeinggranted,thepaymentwillbecountedintorelevantcostsorexpensesandtheliabilitywillbeincreasedcorrespondingly.Iftherightscanonlybeexercisedafterthesituationthatservicewithinthewaitingperiodiscompletedandsetperformanceisachieved,theserviceobtainedatthecurrentperiod,accordingtothefairvalueamountoftheliabilitybornebytheCompany,andbasingontheoptimumestimationfortheconditionofexercisingrights,willbecountedintocostsorexpensesoneachandeverybalancesheetdateduringthewaitingperiod,andtheliabilitywillbeincreasedcorrespondingly.Eachandeverybalancesheetdateandsettlementbeforerelevantliabilitysettlement,thefairvalueofliabilitywillberemeasured,ofwhichchangesoccurredwillbecountedintothecurrentperiod.
2.RelevantAccountingTreatmentofModificationandTerminationforShare-basedPaymentPlanWhentheCompanymodifiesthesharepaymentplan,ifthefairvalueoftheequityinstrumentgrantedisincreasedafterthemodification,theincreaseintheserviceobtainedwillbecorrespondinglyconfirmedaccordingtotheincreaseinthefairvalueofequityinstrument.Theincreaseinthefairvalueofequityinstrumentmeansthe
balancebetweentheequityinstrumentbeforemodificationandtheequityinstrumentaftermodificationonmodificationdate.Ifdecreaseoccurredinthetotalfairvalueoftheequityinstrumentafterthemodificationormethodswhichareunbeneficialtoemployeesareadoptedinthemodification,accountingtreatmentwillstillcontinuetobemadefortheserviceobtained,andsuchchangeswillberegardedaschangesthathaveneveroccurredunlesstheCompanyhascanceledpartialorallequityinstruments.
Duringthewaitingperiod,ifthegrantedequityinstrumentiscancelled,thecompanywilltreatthecancelledequityinstrumentastheacceleratedexerciseofpower,andimmediatelyincludethebalancethatshouldberecognizedintheremainingwaitingperiodintothecurrentprofitandloss,andsimultaneouslyconfirmthecapitalreserve.Iftheemployeeorotherpartycanchoosetosatisfythenon-exercisableconditionbutnotsatisfiedinthewaitingperiod,thenthecompanywilltreatitascancellationofthegrantedequityinstrument.
3.AccountingtreatmentinvolvingthesharepaymenttransactionbetweentheCompanyandtheshareholdersortheactualcontrolleroftheCompany
WhereinvolvesthesharepaymenttransactionbetweentheCompanyandtheshareholdersortheactualcontrolleroftheCompanyandoneofthepartiesofthesettlementcompanyandtheservice-acceptingcompanyiswithinthecompanyandtheotherisnotwithinthecompany,thenthecompanyperformstheaccountingtreatmentintheconsolidatedfinancialstatementsofthecompanyaccordingtothefollowingprovisions:
(1)Ifthesettlementcompanysettlesinitsownequityinstrument,thenittreatstheequitypaymenttransactionastheequity-settledequitypayment;otherwise,ittreatsasthecash-settledequitypayment.
Ifthesettlementcompanyisaninvestortotheservice-acceptingcompany,itshallberecognizedasalong-termequityinvestmentintheservice-acceptingcompanyinaccordancewiththefairvalueoftheequityinstrumentorthefairvalueoftheliabilityitisassumedtobearonthegrantdate,andthecapitalreserve(othercapitalreserve)orliabilitiesshallberecognizedatthesametime.
(2)Iftheservice-acceptingcompanyhasnosettlementobligationorconfersitsownequitytoolsontheemployeesofthecompany,thensuchequitypaymenttransactionshallbetreatedasequity-settledequitypayment;iftheservice-acceptingcompanyhasthesettlementobligationandconferstheemployeesofthecompanywithnotitsownequityinstrument,thensuchequitypaymenttransactionshallbetreatedascash-settledequitypayment;
Inthecaseoftheequitypaymenttransactionoccursbetweenthecompanieswithinthecompany,andtheservice-acceptingcompanyandthesettlementcompanyarenotthesamecompany,thentheconfirmationandmeasurementoftheequitypaymenttransactionshallbecarriedoutrespectivelyinthefinancialreportoftheservice-acceptingcompanyandthesettlementcompany,withthesameanalogyoftheabove-saidprinciple.
38.Otherfinancialinstrumentssuchaspreferredstocksandperpetualbonds
Notapplicable
39.RevenueAccountingpoliciesadoptedforincomerecognitionandmeasurement
Whenthecontractbetweenthecompanyandthecustomermeetsthefollowingconditionsatthesametime,theincomeisrecognizedwhenthecustomerobtainsthecontrolrightoftherelevantgoods:thepartiestothecontracthaveapprovedthecontractandpromisedtofulfilltheirrespectiveobligations;Thecontractclarifiestherightsandobligationsofthepartiestothecontractrelatedtothetransferredgoodsorservices;Thecontracthasclearpaymenttermsrelatedtothetransferredgoods;Thecontractisofcommercialnature,thatis,theperformanceofthecontractwillchangetherisk,timedistributionoramountofthecompany'sfuturecashflow;Theconsiderationthatthecompanyisentitledtoobtainduetothetransferofgoodstocustomersislikelytobe
recovered.Onthecommencementdateofthecontract,theCompanyidentifieseachindividualperformanceobligationinthecontract,anddistributesthetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodspromisedbyeachindividualperformanceobligation.Indeterminingthetransactionprice,theinfluenceofvariableconsideration,significantfinancingcomponentsinthecontract,non-cashconsideration,considerationpayabletocustomersandotherfactorsareconsidered.Ifoneofthefollowingconditionsismet,theperformanceobligationwillbeconsideredfulfilledwithinacertainperiodoftime;otherwise,theperformanceobligationwillbeconsideredfulfilledatacertaintimepoint:
(1)Thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametime;
(2)Customerscancontrolthegoodsunderconstructionduringtheperformanceofthecompany;
(3)ThegoodsproducedduringtheperformanceoftheCompanyhaveirreplaceablepurposes,andtheCompanyhastherighttocollectpaymentfortheperformedpartaccumulatedsofarduringthewholecontractperiod.
Fortheperformanceobligationsperformedwithinacertainperiodoftime,theCompanyshallrecognizetheincomeaccordingtotheperformanceprogresswithinthatperiodoftime,exceptthatthosewithperformanceprogressthatcannotbereasonablydetermined.Whentheperformanceschedulecannotbereasonablydetermined,ifthealreadyincurredcostsareexpectedtobecompensated,theCompanyshallrecognizetheincomeaccordingtothealreadyincurredcostsuntiltheperformanceschedulecanbereasonablydetermined.Fortheperformanceobligationperformedatacertaintime,theCompanyrecognizestheincomewhenthecustomerobtainsthecontrolrightoftherelevantgoodsorservices.Whenjudgingwhetherthecustomerhasobtainedthecontrolofgoodsorservices,thecompanyconsidersthefollowingsigns:
(1)TheCompanyhastherighttocollectmoneynowforthegoodsorservices,thatis,customershavetheobligationofimmediatepaymentforthegoodsorservices.
(2)TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods.
(3)TheCompanyhastransferredthegoodsinkindtothecustomer,thatis,thecustomerhastakenpossessionofthegoodsinkind.
(4)TheCompanyhastransferredthemainrisksandrewardsofownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsofownershipofthegoods.
(5)Thecustomerhasacceptedthegoodsorservices.TheadoptionofdifferentbusinessmodelsinsimilarbusinessesleadstodifferencesinaccountingpoliciesforincomerecognitionNone
40.Governmentsubsidy
Governmentgrantsaremonetaryassetsandnon-monetaryassetsthatthecompanyhasobtainedfreeofchargefromthegovernmentandaredividedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.Asset-relatedgovernmentgrantsrefertogovernmentgrantsobtainedbythecompanythatareusedtopurchaseorconstructorotherwiseformlong-termassets.Income-relatedgovernmentsubsidiesrefertogovernmentsubsidiesotherthangovernmentsubsidiesrelatedtoassets.
Ifthereisevidenceattheendoftheperiodthatthecompanyisabletomeettherelevantconditionsstipulated
inthefinancialsupportpolicyanditisexpectedtoreceivefinancialsupportfunds,thegovernmentsubsidiesshallberecognizedaccordingtotheamountreceivable.Inaddition,governmentgrantsareconfirmeduponactualreceipt.
Asset-relatedgovernmentgrantsarerecognizedasdeferredincomeandarechargedtoprofitorlossforthecurrentperiodinareasonableandsystematicmannerovertheusefullifeoftherelevantassets.Revenue-relatedgovernmentsubsidies,whichareusedtocompensatefortherelatedcostsorlossesoftheCompanyinthefutureperiod,arerecognizedasdeferredincome,andarerecognizedintheprofitsandlossesofthecurrentperiodintheperiodinwhichtherelevantcosts,expensesorlossesarerecognized.Therelevantcosts,expensesorlossesthathavebeenusedtocompensatetheCompanyhavebeendirectlyrecordedinthecurrentprofitsandlosses.Governmentgrantsrelatedtothecompany'sdailyactivitiesareincludedinotherincome;thoseunrelatedtothedailyactivitiesofthecompanyareincludedinnon-operatingincome.
Forthepolicy-subsidizeddiscountedloansobtainedbythecompany,theaccountingtreatmentisdividedintothefollowingtwocases:whenthefinanceallocatestheinterest-subsidyfundstotheloanbankandtheloanbankprovidesthecompanywithapolicy-basedpreferentialinterestrate,thecompanyusestheactualamountoftheloanreceivedastheentryvalueoftheloan,andcalculatestherelevantborrowingcostsaccordingtotheloanprincipalandthepreferentialpolicyinterestrate;ifthefinanceallocatestheinterest-freefundsdirectlytothecompany,thecompanywillreducetherelevantborrowingcostsbythecorrespondingdiscountinterest.
41.TheDeferredTaxAssets/ThedeferredTaxLiabilities
1.TemporaryDifferenceThetemporarydifferenceincludesthedifferenceofthebookvalueofassetsandliabilitiesandthetaxbasis,andthedifferenceofthebookvalueandthetaxbasisthatnoconfirmationofassetsandliabilitiesbutabletoconfirmthetaxbasisaspertheprovisionsoftaxlaw.Thetemporarydifferencecanbeclassifiedintothetaxabletemporarydifferenceandthedeductibletemporarydifference.
2.RecognitionBasisofDeferredTaxAssetsForthedeductibletemporarydifference,thedeductiblelossandthetaxpaymentoffset,thecompanyshallrecognizethedeferredtaxassetsarisingfromthefuturetaxableincomethatobtainedtodeducethedeductibletemporarydifference,thedeductiblelossandthetaxpaymentoffset.Thedeferredtaxassetswiththefollowingfeaturesandarisingfromtheinitialrecognitionofassetsorliabilitiesinthetransactionshallnotberecognized:(1)thetransactionisnotthebusinesscombination.(2)thetransactiondoesn’tinfluencetheaccountingprofitsandthetaxableincomes(orthedeductiblelosses).Thecompanyshallrecognizethecorrespondingdeferredtaxassetsforthedeductibletemporarydifferencerelatedtotheinvestmentofsubsidiaries,cooperativeenterprisesandjointventuresifthefollowingrequirementsaresimultaneouslymet:(1)thetemporarydifferenceispossibletobereversedintheforeseeablefuture.(2)thetaxableincomeusedtooffsetthedeductibletemporarydifferenceispossibletobeobtainedinthefuture.
3.RecognitionBasisofDeferredTaxLiabilitiesAllthetaxabletemporarydifferencesshallberecognizedasthedeferredtaxliabilities.Butthecompanyshallnotrecognizethetaxabletemporarydifferencesarisingfromthefollowingtransactionsasthedeferredtaxliabilities:(1)theinitialrecognitionofgoodwill.(2)theinitialrecognitionofassetsorliabilitiesarisingfromthetransactionswiththefollowingfeatures:thistransactionisnotthebusinesscombination,andthe
transactiondoesn’tinfluencetheaccountingprofitsandthetaxableincomes(orthedeductiblelosses).Thecompanyshallrecognizethecorrespondingdeferredtaxliabilitiesforthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,cooperativeenterprisesandjointventures.Exceptthatthefollowingrequirementsaresimultaneouslymet:(1)theinvestmententerprisecancontrolthereversaltimeofthetemporarydifference.(2)thetemporarydifferenceispossibletonotbereversedintheforeseeablefuture.
4.ImpairmentofDeferredTaxAssetsThecompanyshallreviewthebookvalueofthedeferredtaxassetsatthebalancesheetdate.Ifitisnotpossibletoobtainsufficienttaxableincomeforthereductionofthebenefitofthedeferredtaxassetsinthefuture,thebookvalueofthedeferredtaxassetsshallbededuced.Exceptthatthedeferredtaxassetsandthereductionamountarerecordedintotheowner’sequitywhentheoriginalrecognition,othersshallberecordedintothecurrentincometaxexpense.Thebookvalueofthedeferredtaxassetsreducedcanberecoveredwhensufficienttaxableincomeispossiblyobtained.
5.IncomeTaxExpenseTheincometaxexpenseshouldincludethecurrentincometaxandthedeferredincometax.Othercomprehensiveincomeorthecurrentincometaxandthedeferredincometaxrelatedtothetransactionsanditemsdirectlyrecordedintothestockholders’equity,shallberecordedintoothercomprehensiveincomesorthestockholders’equity,andthebookvalueofgoodwillshallbeadjustedbythedeferredincometaxarisingfromthebusinesscombination,buttherestofthecurrentincometaxandthedeferredincometaxexpenseorincomeshallberecordedintothecurrentprofitsandlosses.
42.Lease
1.AccountingTreatmentMethodofOperatingLeaseWhenthecompanyisasthetenant,therentalwithintheleasetermshallberecordedintotherelevantassetscostorrecognizedasthecurrentprofitsandlossesasperthelinemethod,andtheinitialdirectexpenseoccurredshallbedirectlyrecordedintothecurrentprofitandloss.Thecontingentrentalshallberecordedintothecurrentprofitandlossoncetheactualoccurrence.Whenthecompanyisastheleaser,therentalwithintheleasetermshallberecognizedasthecurrentprofitsandlossesasperthelinemethod,andtheinitialdirectexpenseoccurredshallbedirectlyrecordedintothecurrentprofitandloss,exceptthatthelargeamountsarecapitalizedandrecordedintotheprofitandlossbystages.Thecontingentrentalshallberecordedintothecurrentprofitandlossoncetheactualoccurrence.
2.AccountingTreatmentMethodofFinanceLeaseWhenthecompanyisasthetenant,thecompanyshallrecognizethelessonebetweenthefairvalueofleasingassetsandthepresentvalueofminimumleasepaymentattheleasecommencementdateasthebookvalueofrentedassets,recognizetheminimumleasepaymentasthebookvalueofthelong-termpayables,andtheundeterminedfiancéexpenseofthedifferenceandtheinitialdirectcostsoccurredshallberecordedintotheleasingassetvalue.Duringeachleaseperiod,thecurrentfinancingchargesshallbemeasuredandrecognizedbytheeffectiveinterestmethod.Whenthecompanyisastheleaser,thecompanyshallrecognizethesumofminimumleasereceivablesandinitial
directexpenseattheleasecommencementdateasthebookvalueoffinanceleasereceivables,andrecordtheunguaranteedresidualvalue.Meanwhile,thecompanyshallrecognizethedifferencebetweenthesumsofminimumleasereceivables,minimumleasereceivablesandunguaranteedminusthesumofthepresentvalueastheunrealizedfinancingincome.Duringeachleaseperiod,thecurrentfinancingchargesshallbemeasuredandrecognizedbytheeffectiveinterestmethod.
43.Otherimportantaccountingpoliciesandaccountingestimates
(1)ChangeofmainaccountingpoliciesAccountingpolicychangescausedbyimplementationofnewfinancialinstrumentstandards
（2）Changesinaccountingestimates
Nosignificantchangesinaccountingestimateshaveoccurredinthecurrentperiod.
44.Changeofmainaccountingpoliciesandestimations
(1)Changeofmainaccountingpolicies
√Applicable□Notapplicable
Thecontentandreasonforchangeof
accountingpolicy
| Thecontentandreasonforchangeofaccountingpolicy | Approvalprocess | Remarks |
| In2017,theMinistryofFinanceissued4newfinancialinstrumentstandardsincludingtherevisedAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardsforBusinessEnterprisesNo.14-Revenue(hereinafterreferredtoasthenewrevenuestandard),whichstipulatedthatenterpriseslistedathomeandabroadatthesametime,aswellasenterpriseslistedoverseasandadoptinginternationalfinancialreportingstandardsoraccountingstandardsforbusinessenterprisestopreparefinancialstatements,shouldimplementthenewstandardsfromJanuary1,2018.Accordingtoregulations,thecompanywillimplementthenewincomestandardsfromJanuary1,2020,andadjusttherelevantcontentsofaccountingpolicies. | Adoptedatthe27thmeetingofthe7thBoardofDirectors | http://www.cninfo.com.cnOnMarch14,2020(AnnouncementNo.:2020-14) |
（2）Changeofmainaccountingestimations
□Applicable√Notapplicable
（3）AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeasesfromyear2020Applicable
Whetherneedtoadjustthebalancesheetaccountatthebeginningoftheyear
√Yes□No
Consolidatedbalancesheet
InRMB
Items
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Currentasset： | |||
| Monetaryfund | 409,564,847.52 | 409,564,847.52 | |
| Settlementprovision | |||
| Outgoingcallloan | |||
| Transactionalfinancialassets | 830,000,000.00 | 830,000,000.00 | |
| Derivativefinancialassets | |||
| Notesreceivable | 40,424,601.97 | 40,424,601.97 | |
| Accountreceivable | 365,325,029.38 | 365,325,029.38 | |
| Financingofreceivables | 17,933,597.98 | 17,933,597.98 | |
| Prepayments | 18,445,857.53 | 18,445,857.53 | |
| Insurancereceivable | |||
| Reinsurancereceivable | |||
| ProvisionsofReinsurancecontractsreceivable | |||
| Otheraccountreceivable | 12,440,761.13 | 12,440,761.13 | |
| Including：Interestreceivable | 7,610,043.19 | 7,610,043.19 | |
| Dividendreceivable | |||
| Repurchasingoffinancialassets | |||
| Inventories | 391,717,935.12 | 391,717,935.12 | |
| Contractassets | |||
| Assetsheldforsales |
Non-currentassetduewithin1year
| Non-currentassetduewithin1year | ||
| Othercurrentasset | 140,821,609.72 | 140,821,609.72 |
| Totalofcurrentassets | 2,226,674,240.35 | 2,226,674,240.35 |
| Non-currentassets： | ||
| Loansandpaymentonother’sbehalfdisbursed | ||
| Creditor'srightinvestment | ||
| Otherinvestmentonbonds | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 152,209,929.72 | 152,209,929.72 |
| Otherequityinstrumentsinvestment | 248,781,946.73 | 248,781,946.73 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 112,730,320.90 | 112,730,320.90 |
| Fixedassets | 903,229,077.83 | 903,229,077.83 |
| Constructioninprogress | 839,866,275.92 | 839,866,275.92 |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 36,517,996.34 | 36,517,996.34 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 2,692,750.67 | 2,692,750.67 |
| Deferredincometaxasset | 5,618,026.43 | 5,618,026.43 |
| Othernon-currentasset | 3,079,321.10 | 3,079,321.10 |
| Totalofnon-currentassets | 2,304,725,645.64 | 2,304,725,645.64 |
| Totalofassets | 4,531,399,885.99 | 4,531,399,885.99 |
| Currentliabilities | ||
| Short-termloans | ||
| LoanfromCentralBank | ||
| Borrowingfunds | ||
| Transactionalfinancialliabilities |
Derivativefinancialliabilities
| Derivativefinancialliabilities | |||
| Notespayable | |||
| Accountpayable | 241,297,770.64 | 241,297,770.64 | |
| Advancereceipts | 30,530,117.62 | 28,180,668.72 | -2,349,448.90 |
| Contractliabilities | 2,349,448.90 | 2,349,448.90 | |
| Sellingofrepurchasedfinancialassets | |||
| Deposittakingandinterbankdeposit | |||
| Entrustedtradingofsecurities | |||
| Entrustedsellingofsecurities | |||
| Employees’wagepayable | 38,556,180.20 | 38,556,180.20 | |
| Taxpayable | 22,545,550.33 | 22,545,550.33 | |
| Otheraccountpayable | 152,645,780.14 | 152,645,780.14 | |
| Including：Interestpayable | |||
| Dividendpayable | |||
| Feesandcommissionspayable | |||
| Reinsurancefeepayable | |||
| Liabilitiesheldforsales | |||
| Non-currentliabilityduewithin1year | |||
| Othercurrentliability | |||
| Totalofcurrentliability | 485,575,398.93 | 485,575,398.93 | |
| Non-currentliabilities： | |||
| Reservefundforinsurancecontracts | |||
| Long-termloan | |||
| Bondpayable | |||
| Including：preferredstock | |||
| Sustainabledebt | |||
| Leaseliability | |||
| Long-termpayable |
Long-termremunerationpayabletostaff
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 121,264,571.22 | 121,264,571.22 |
| Deferredincometaxliability | 69,944,345.66 | 69,944,345.66 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 191,208,916.88 | 191,208,916.88 |
| Totalofliability | 676,784,315.81 | 676,784,315.81 |
| Owners’equity | ||
| Sharecapital | 509,338,429.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,974,922,248.03 | 1,974,922,248.03 |
| Less：Sharesinstock | 16,139,003.40 | 16,139,003.40 |
| Othercomprehensiveincome | 119,737,783.31 | 119,737,783.31 |
| Specialreserve | ||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 |
| Commonriskprovision | ||
| Retainedprofit | 49,307,764.03 | 49,307,764.03 |
| Totalofowner’sequitybelongtotheparentcompany | 2,727,764,144.36 | 2,727,764,144.36 |
| Minorityshareholders’equity | 1,126,851,425.82 | 1,126,851,425.82 |
| Totalofowners’equity | 3,854,615,570.18 | 3,854,615,570.18 |
| Totalofliabilitiesandowners’equity | 4,531,399,885.99 | 4,531,399,885.99 |
AdjustmentstatementThemainchangesandimpactsoftheimplementationofthenewincomestandardsontheCompanyareasfollows:
TheCompanywillreclassifytheaccountsreceivedinadvancewithsomeoutstandingperformanceobligationsascontractliabilitiesonorafterJanuary1,2020.
ParentCompanyBalanceSheet
InRMB
Items
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Currentasset： | |||
| Monetaryfund | 27,979,338.37 | 27,979,338.37 | |
| Transactionalfinancialassets | 650,000,000.00 | 650,000,000.00 | |
| Derivativefinancialassets | |||
| Notesreceivable | |||
| Accountreceivable | 522,931.04 | 522,931.04 | |
| Financingofreceivables | |||
| Prepayments | 768,099.94 | 768,099.94 | |
| Otheraccountreceivable | 17,039,506.00 | 17,039,506.00 | |
| Including：Interestreceivable | 7,329,228.31 | 7,329,228.31 | |
| Dividendreceivable | |||
| Inventories | |||
| Contractassets | |||
| Assetsheldforsales | |||
| Non-currentassetduewithin1year | |||
| Othercurrentasset | |||
| Totalofcurrentassets | 696,309,875.35 | 696,309,875.35 | |
| Non-currentassets： | |||
| Creditor'srightinvestment | |||
| Otherinvestmentonbonds | |||
| Long-termreceivable | |||
| Longtermshareequityinvestment | 2,102,430,511.88 | 2,102,430,511.88 | |
| Otherequityinstrumentsinvestment | 206,816,952.64 | 206,816,952.64 | |
| Othernon-currentfinancialassets |
Realestateinvestment
| Realestateinvestment | 107,199,622.80 | 107,199,622.80 | |
| Fixedassets | 25,500,695.77 | 25,500,695.77 | |
| Constructioninprogress | 19,552.00 | 19,552.00 | |
| Productionphysicalassets | |||
| Oil&gasassets | |||
| Userightassets | |||
| Intangibleassets | 659,937.75 | 659,937.75 | |
| Developmentexpenses | |||
| Goodwill | |||
| Long-germexpensestobeamortized | 800,858.17 | 800,858.17 | |
| Deferredincometaxasset | 5,466,478.06 | 5,466,478.06 | |
| Othernon-currentasset | |||
| Totalofnon-currentassets | 2,448,894,609.07 | 2,448,894,609.07 | |
| Totalofassets | 3,145,204,484.42 | 3,145,204,484.42 | |
| Currentliabilities | |||
| Short-termloans | |||
| Transactionalfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | |||
| Accountpayable | 411,743.57 | 411,743.57 | |
| Advancereceipts | 2,878,936.58 | 639,024.58 | -2,239,912.00 |
| ContractLiabilities | 2,239,912.00 | 2,239,912.00 | |
| Employees’wagepayable | 11,910,175.11 | 11,910,175.11 | |
| Taxpayable | 20,801,961.18 | 20,801,961.18 | |
| Otheraccountpayable | 119,984,209.60 | 119,984,209.60 | |
| Including：Interestpayable | |||
| Dividendpayable | |||
| Liabilitiesheldforsales | |||
| Non-currentliabilityduewithin1year | |||
| Othercurrentliability | |||
| Totalofcurrentliability | 155,987,026.04 | 155,987,026.04 |
Non-currentliabilities：
| Non-currentliabilities： | ||
| Long-termloan | ||
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 600,000.00 | 600,000.00 |
| Deferredincometaxliability | 66,953,097.14 | 66,953,097.14 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 67,553,097.14 | 67,553,097.14 |
| Totalofliability | 223,540,123.18 | 223,540,123.18 |
| Owners’equity | ||
| Sharecapital | 509,338,429.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,589,869,499.36 | 1,589,869,499.36 |
| Less：Sharesinstock | 16,139,003.40 | 16,139,003.40 |
| Othercomprehensiveincome | 110,764,037.74 | 110,764,037.74 |
| Specialreserve | ||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 |
| Retainedprofit | 637,234,475.15 | 637,234,475.15 |
| Totalofowners’equity | 2,921,664,361.24 | 2,921,664,361.24 |
| Totalofliabilitiesandowners’equity | 3,145,204,484.42 | 3,145,204,484.42 |
Note
ThemainchangesandimpactsoftheimplementationofthenewincomestandardsontheCompanyareasfollows:
TheCompanywillreclassifytheaccountsreceivedinadvancewithsomeoutstandingperformanceobligationsascontractliabilitiesonorafterJanuary1,2020.
（4）RetrospectiveRestatementofPreviousComparativeDataduetotheFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeasesfromyear2020
□Applicable√Notapplicable
45.OtherNoneVI.TaxesoftheCompany
1.Maintaxescategoriesandtaxrate
Taxes
| Taxes | Taxreferences | Applicabletaxrates |
| VAT | Thetaxableturnover | 16.00%、13.00%、5.00% |
| Cityconstructiontax | Turnovertaxtobepaidallowances | 7% |
| Businessincometax | Turnovertaxtobepaidallowances | 25%、16.5%、15% |
| Educationsurcharge | Turnovertaxtobepaidallowances | 3% |
| Localeducationsurcharge | Turnovertaxtobepaidallowances | 2% |
Incasethereexistanytaxpayerpayingcorporateincometaxatdifferenttaxrates,disclosetheinformation
| Nameoftaxpayer | Incometaxrates |
| ShenzhenShengboOptoelectronicTechnologyCo.,Ltd. | 15.00% |
2.Taxpreferenceandapprovalfile
(1)ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.,thesubsidiarycompanyofourcompany,hasbeenqualifiedasnationalhigh-techenterprisesince2019,High-techandenterprisecertificateNo.:
GR201944205666,Thecertificateisvalidforthreeyears,Theenterpriseincometaxrateofthisyearis15%.
(2).InaccordancewithrelevantprovisionsoftheNoticeofMinistryofFinance,GeneralAdministrationofCustomsandStateTaxationAdministrationRegardingTaxPreferencePoliciesforFurtherSupportingtheDevelopmentofNew-typeDisplayDeviceIndustry(CaiGuanShui(2016)No.62),ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.manufacturedkeymaterialsandpartsfortheupstreamindustryofnew-typedisplaydevicesincludingcolorfullightfiltercoatingandpolarizersheetthatcomplywiththeplanningforindependentdevelopmentofdomesticindustriesmayenjoythepreferentialpoliciesofexemptionfromimporttarifffortheimportofrawmaterialsandconsumablesforthepurposeofselfuseandproductionthatcannotbeproduceddomesticallyfromJanuary1,2016andDecember31,2020.
3.OtherNone
VII.Notesofconsolidatedfinancialstatement
1.MonetaryCapital
InRMB
Items
| Items | Year-endbalance | Year-beginningbalance |
| Cashathand | 8,432.52 | 11,091.94 |
| Bankdeposit | 177,437,894.00 | 272,366,495.29 |
| Othermonetaryfunds | 30,870,007.94 | 137,187,260.29 |
| Total | 208,316,334.46 | 409,564,847.52 |
| Including:Thetotalamountofdepositabroad | 6,380,553.27 | 3,272,384.31 |
Othernotes
①EndingamountofothermonetaryfundswasRMB163,680,930.25AnddepositaninvestmentofRMB236,266.53.
②AsofJune30,2020，Thefixed-termdepositbalanceofmoneyfundisRMB34,610,054.73,thispartwillnotbetreatedasclosingcashorclosingcashequivalentinpreparingcashflowstatement.
2.Transactionalfinancialassets
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| financialassetsmeasuredattheirfairvaluesandwiththevariationincludedinthecurrentprofitsandlosses | 779,000,000.00 | 830,000,000.00 |
| Including： | ||
| Structuredeposit | 779,000,000.00 | 830,000,000.00 |
| Including： | ||
| Total | 779,000,000.00 | 830,000,000.00 |
Othernote：
None
3.Derivativefinancialassets
Notapplicable
4.Notesreceivable
(1)Notesreceivablelistedbycategory
InRMB
Items
| Items | Year-endbalance | Year-beginningbalance |
| Bankacceptance | 43,359,624.18 | 40,424,601.97 |
| Total | 43,359,624.18 | 40,424,601.97 |
Allbillsreceivablearebankacceptancebills,andbecausethereisnosignificantcreditrisk,nocreditimpairmentprovisionisaccrued.Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√Notapplicable
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：NoneOfwhichthesignificantactualwrite-offaccountsreceivable:
□Applicable√Notapplicable
（3）NotesreceivablepledgedbytheCompanyattheendoftheperiodNotapplicable
（4）NotesreceivablewhichhadendorsedbytheCompanyorhaddiscountedandhadnotdueonthebalancesheetdateattheperiod-end
InRMB
| Items | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptance | 89,284,511.43 | |
| Total | 89,284,511.43 |
（5）NotestransferredtoaccountsreceivablebecausedrawerofthenotesfailstoexecutedthecontractoragreementNotapplicable
（6）Theactualwrite-offaccountsreceivableNotapplicable
5.Accountreceivable
(1)Classificationaccountreceivables.
InRMB
Category
| Category | Amountinyear-end | Amountinyear-begin | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrualofbaddebtprovisionbysingleitem | 12,788,676.67 | 2.71% | 10,852,610.18 | 84.86% | 1,936,066.49 | 12,753,137.41 | 3.22% | 10,823,862.18 | 84.87% | 1,929,275.23 |
| Including： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 458,681,723.32 | 97.29% | 23,197,913.27 | 5.06% | 435,483,810.05 | 382,700,561.55 | 96.78% | 19,304,807.40 | 5.04% | 363,395,754.15 |
| Including： | ||||||||||
| Total | 471,470,399.99 | 100.00% | 34,050,523.45 | 7.22% | 437,419,876.54 | 395,453,698.96 | 100.00% | 30,128,669.58 | 7.62% | 365,325,029.38 |
Accrualofbaddebtprovisionbysingleitem:10,852,610.18yuan
InRMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportion | Reason | |
| DongguanYaxingSemiconductorCo.,Ltd. | 2,797,016.81 | 1,650,239.92 | 59.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| DongguanFairLCDCo.,Ltd. | 1,698,534.99 | 1,698,534.99 | 100.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| GuangdongRuili | 1,298,965.36 | 649,482.68 | 50.00% | Beyondthecredit |
BaolaiTechnologyCo.,Ltd.
| BaolaiTechnologyCo.,Ltd. | periodforalongtime,uncertainrecovered. | |||
| ShenzhenGulidaMicroelectronicsCo.,Ltd. | 1,029,587.20 | 978,107.84 | 95.00% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| Other | 5,964,572.31 | 5,876,244.75 | 98.52% | Beyondthecreditperiodforalongtime,uncertainrecovered. |
| Total | 12,788,676.67 | 10,852,610.18 | -- | -- |
Accrualofbaddebtprovisionbyportfolio:23,197,913.27yuan
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Within1year | 458,013,563.82 | 22,994,725.97 | 5.02% |
| 1-2years | 668,159.50 | 203,187.30 | 30.41% |
| Total | 458,681,723.32 | 23,197,913.27 | -- |
Notesofthebasisofrecognizingthegroup:
Thecombinationoftheageingstatusofaccountsreceivableasacreditriskfeature.Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 458,030,961.99 |
| 1-2years | 704,645.92 |
| 2-3years | 108,476.48 |
| Over3years | 12,626,315.60 |
| 3-4years | 133,439.29 |
| 4-5years | 895,242.68 |
| Over5years | 11,597,633.63 |
| Total | 471,470,399.99 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
Category
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbyportfolio: | 19,304,807.40 | 3,893,105.87 | 23,197,913.27 | |||
| Accrualofbaddebtprovisionbysingleitem: | 10,823,862.18 | 28,748.00 | 10,852,610.18 | |||
| Total | 30,128,669.58 | 3,921,853.87 | 34,050,523.45 | |||
Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:None
(3)Theactualwrite-offaccountsreceivable
None
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Balanceinyear-end | Proportion(%) | Baddebtprovision |
| First | 172,427,160.60 | 36.57% | 8,621,358.03 |
| Second | 56,323,722.65 | 11.95% | 2,816,186.13 |
| Third | 44,409,349.53 | 9.42% | 2,220,467.48 |
| Fourth | 28,624,747.18 | 6.07% | 1,431,237.36 |
| Fifth | 27,535,861.55 | 5.84% | 1,376,793.08 |
| Total | 329,320,841.51 | 69.85% |
（5）AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNoneOthernote：
None
6.Receivablefinancing
InRMB
| Items | Closingbalance | Openingbalance |
| Notereceivable | 17,933,597.98 |
Total
| Total | 17,933,597.98 |
Changesincurrentperiodandfairvalueofreceivablesfinancing
□Applicable√Notapplicable
Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√NotapplicableOthernote：
None
7.Prepayments
(1)Listbyaginganalysis:
InRMB
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion% | Amount | Proportion% | |
| Within1year | 12,942,710.16 | 98.35% | 18,234,600.87 | 98.86% |
| 1-2years | 194,292.29 | 1.48% | 188,517.78 | 1.02% |
| 2-3years | 9,530.00 | 0.07% | 9,530.00 | 0.05% |
| Over3years | 13,208.88 | 0.10% | 13,208.88 | 0.07% |
| Total | 13,159,741.33 | -- | 18,445,857.53 | -- |
Notesofthereasonsoftheprepaymentagesover1yearwithsignificantamountbutfailedsettledintimeOnJune30,2020,therewasnolargeprepaymentwithanaccountingageofmorethanoneyearinthebalanceofprepayment.
（2）TheendingbalanceofPrepaymentsowedbytheimputationofthetopfiveparties
| Name | June30,2020 | Proportion% |
| First | 3,844,784.69 | 29.22 |
| Second | 1,795,386.82 | 13.64 |
| Third | 1,604,402.71 | 12.19 |
| Fourth | 853,318.59 | 6.48 |
| Fifth | 751,681.15 | 5.71 |
| Total | 8,849,573.96 | 67.24 |
Othernote：
None
8.Otherreceivable
InRMB
| Items | Closingbalance | Openingbalance |
Interestreceivable
| Interestreceivable | 8,217,934.25 | 7,610,043.19 |
| Otheraccountsreceivable | 5,443,832.93 | 4,830,717.94 |
| Total | 13,661,767.18 | 12,440,761.13 |
（1）Interestreceivable
1)Categoryofinterestreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Fixeddeposit | 109,425.24 | |
| Structuredeposit | 8,217,934.25 | 7,500,617.95 |
| Total | 8,217,934.25 | 7,610,043.19 |
2)SignificantoverdueinterestAsofJune30,2020,Nooverdueinterest3）Bad-debtprovision
□Applicable√Notapplicable
(2)DividendreceivableNotapplicable
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassifiedbythenatureofaccounts
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| Customsbond | 73,192.60 | 326,628.25 |
| Exportrebate | 709,028.48 | 1,191,949.50 |
| Unitaccount | 16,298,671.39 | 15,674,175.33 |
| Deposit | 2,073,363.99 | 2,109,061.49 |
| Reservefundandstaffloans | 669,432.99 | 428,019.47 |
| Other | 1,474,930.09 | 1,069,836.88 |
| Total | 21,298,619.54 | 20,799,670.92 |
2）Bad-debtprovision
InRMB
BadDebtReserves
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2020 | 1,575,667.61 | 14,393,285.37 | 15,968,952.98 | |
| BalanceasatJanuary1,2020incurrent | —— | —— | —— | —— |
| Turnbackinthecurrentperiod | 114,166.37 | 114,166.37 | ||
| BalanceasatJune30，2020 | 1,461,501.24 | 14,393,285.37 | 15,854,786.61 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√NotapplicableDisclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 3,912,546.56 |
| 1-2years | 571,073.49 |
| 2-3years | 612,362.92 |
| Over3years | 16,202,636.57 |
| 3-4years | 1,844,818.50 |
| 4-5years | 577,633.07 |
| Over5years | 13,780,185.00 |
| Total | 21,298,619.54 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbysingleitem | 1,575,667.61 | 114,166.37 | 1,461,501.24 | |||
Accrualofbaddebtprovisionbyportfolio
| Accrualofbaddebtprovisionbyportfolio | 14,393,285.37 | 14,393,285.37 | |||
| Total | 15,968,952.98 | 114,166.37 | 15,854,786.61 |
Wherethecurrentbaddebtsbackorrecoversignificantamounts:None
(4)Otheraccountreceivablesactuallycancelafterwrite-off
None
(5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance |
| First | Unitaccount | 11,389,044.60 | Over5years | 51.32% | 11,389,044.60 |
| Second | Unitaccount | 1,800,000.00 | 3-4years | 8.11% | 1,800,000.00 |
| Third | Unitaccount | 1,018,295.37 | Within1year,1-3years | 4.59% | 181,045.68 |
| Fourth | Deposit | 980,461.06 | Over5years | 4.42% | 490,230.53 |
| Fifth | Deposit | 592,420.00 | Over5years | 2.67% | 592,420.00 |
| Total | -- | 15,780,221.03 | -- | 71.11% | 14,452,740.81 |
(6)AccountsreceivableinvolvedwithgovernmentsubsidiesNone
(7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone
(8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableNone
9.InventoriesWhetherthecompanyneedtocomplywiththedisclosurerequirementsoftherealestateindustry
No
（1）CategoryofInventory
InRMB
| Items | Closingbookbalance | Openingbookbalance |
Bookbalance
| Bookbalance | Provisionforinventoryimpairment | Bookvalue | Bookbalance | Provisionforinventoryimpairment | Bookvalue | |
| Rawmaterials | 271,527,185.13 | 29,058,383.63 | 242,468,801.50 | 212,371,911.48 | 31,148,714.05 | 181,223,197.43 |
| Processingproducts | 4,701,813.03 | 4,701,813.03 | 5,962,105.18 | 5,962,105.18 | ||
| Goodsintransit | 1,618,894.41 | 48,491.27 | 1,570,403.14 | |||
| Finishedproduct | 150,976,269.58 | 57,389,369.96 | 93,586,899.62 | 135,636,148.29 | 53,692,060.27 | 81,944,088.02 |
| Semi-finished | 127,303,360.12 | 20,635,187.32 | 106,668,172.80 | 130,209,635.92 | 36,196,938.50 | 94,012,697.42 |
| Commissionedmaterials | 21,742,875.87 | 3,637,965.67 | 18,104,910.20 | 30,643,409.60 | 3,637,965.67 | 27,005,443.93 |
| Total | 576,251,503.73 | 110,720,906.58 | 465,530,597.15 | 516,442,104.88 | 124,724,169.76 | 391,717,935.12 |
(2)Inventorydepreciationreserve
InRMB
| Items | Openingbalance | Increasedincurrentperiod | Decreasedincurrentperiod | Closingbalance | ||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Rawmaterials | 31,148,714.05 | 2,332,142.48 | 4,422,472.90 | 29,058,383.63 | ||
| Finishedproduct | 53,692,060.27 | 11,431,280.23 | 7,733,970.54 | 57,389,369.96 | ||
| Semi-finishedproduct | 36,196,938.50 | 21,711,212.22 | 37,272,963.40 | 20,635,187.32 | ||
| Goodsintransit | 48,491.27 | 48,491.27 | ||||
| Commissionedmaterials | 3,637,965.67 | 3,637,965.67 | ||||
| Total | 124,724,169.76 | 35,474,634.93 | 49,477,898.11 | 110,720,906.58 | ||
| Items | Specificbasisforwithdrawalofprovisionforinventory | Reasonforrecoveryofprovisionforinventoryinthisyear | Reasonforwrite-offofprovisionforinventoryinthisyear |
| Rawmaterials | Duetoadeclineinthemarketpriceofpolarizerproductsinthisperiod,the | No | Useofrelevantmaterials |
realizablenetvalueofrelevantmaterialswaslowerthantheirinventorycost.
| realizablenetvalueofrelevantmaterialswaslowerthantheirinventorycost. | |||
| Finishedproduct | Duetoadeclineinthemarketpriceofpolarizerproductsinthisperiod,therealizablenetvalueofrelevantmaterialswaslowerthantheirinventorycost. | No | Sellingrelatedfinishedgoods |
| Semi-finishedproduct | Duetoadeclineinthemarketpriceofpolarizerproductsinthisperiod,therealizablenetvalueofrelevantmaterialswaslowerthantheirinventorycost. | No | Sellingrelatedfinishedgoods |
| Goodsintransit | Duetoadeclineinthemarketpriceofpolarizerproductsinthisperiod,therealizablenetvalueofrelevantmaterialswaslowerthantheirinventorycost. | No | Sellingrelatedfinishedgoods |
(3)DescriptionofTheclosingbalanceofinventoriescontaintheamountofborrowingcostscapitalizedNone
（4）DescriptionofamortizationamountofcontractperformancecostinthecurrentperiodNone
10.ContractassetsRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofcontractassetsisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√Notapplicable
Provisionforimpairmentofcontractassetsinthecurrentperiod
Notapplicable
11.Assetsdividedasheld-to-sold
Notapplicable
12.Non-currentassetsduewithin1year
Notapplicable
13.Othercurrentassets
InRMB
Items
| Items | Year-endbalance | Year-beginningbalance |
| AfterthedeductionofinputVAT | 153,181,153.73 | 140,821,609.72 |
| Total | 153,181,153.73 | 140,821,609.72 |
Othernotes：None
14.Creditor'srightinvestment
Notapplicable
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
15.Othercreditor'srightsinvestment
Notapplicable
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
16.Long-termaccountsreceivable
(1)Listoflong-termaccountsreceivableNotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
(2)Long-termaccountsreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNotapplicable
(3)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementoflong-termaccountsreceivableNotapplicable
17.Long-termequityinvestment
InRMB
Investees
| Investees | Openingbalance | Increase/decrease | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Decreaseininvestment | ProfitsandlossesoninvestmentsRecognizedundertheequitymethod | Othercomprehensiveincome | Changesinotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,098,833.77 | -51,447.40 | 10,047,386.37 | ||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 129,623,072.69 | -974,221.54 | 128,648,851.15 | ||||||||
| Subtotal | 139,721,906.46 | -1,025,668.94 | 138,696,237.52 | ||||||||
| 2.AffiliatedCompany | |||||||||||
| ShenzhenChanglianfaPrinting&dyeingCompany | 2,450,676.14 | 91,484.11 | 2,542,160.25 | ||||||||
| Jordan | 902,26 | -924,09 | 6,568.8 | -15,259 | |||||||
GarmentFactory
| GarmentFactory | 9.19 | 7.64 | 4 | .61 | ||
| HongkongYehuiInternationalCo.,Ltd. | 9,135,077.93 | -395,650.38 | 381,747.73 | 9,121,175.28 | ||
| Subtotal | 12,488,023.26 | -1,228,263.91 | 388,316.57 | 11,648,075.92 | ||
| Total | 152,209,929.72 | -2,253,932.85 | 388,316.57 | 150,344,313.44 |
Othernote：None
18.Otherequityinstrumentsinvestment
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| Fuaoautopartsco.,Ltd.（000030） | 8,818,366.14 | 6,568,923.76 |
| ShenzhenDailishiUnderwearCo.,Ltd. | 12,315,939.61 | 12,315,939.61 |
| UnionDevelopmentGroupCo.,Ltd. | 152,469,200.00 | 152,469,200.00 |
| ShenzhenXiangjiangTradeCo.,Ltd. | 7,474,900.00 | 7,474,900.00 |
| ShenzhenXinfangKnittingCo.,Ltd. | 2,227,903.00 | 2,227,903.00 |
| JintianIndustry（Group）Co.,Ltd. | ||
| ShenzhenJiafengTextileIndustryCo.,Ltd. | ||
| ShenzhenXieliAutoCo.,Ltd. | 25,760,086.27 | 25,760,086.27 |
| ShenzhenSouthTextileCo.,Ltd. | 13,464,994.09 | 13,464,994.09 |
| ChangxingJunyingInvestmentPartmership | 28,500,000.00 | 28,500,000.00 |
| Total | 251,031,389.11 | 248,781,946.73 |
Itemizeddisclosureofthecurrentnon-tradingequityinstrumentinvestment
InRMB
Name
| Name | Recognizeddividendincome | Accumulatingincome | Accumulatinglosses | Amountofothercomprehensiveincometransferredtoretainedearnings | Reasonsforbeingmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome | Reasonsforothercomprehensiveincometransferredtoretainedearning |
| Fuaoautopartsco.,Ltd.（000030） | 234,604.42 | 122,232.17 | Long-termholding | |||
| ShenzhenDailishiUnderwearCo.,Ltd. | 500,000.00 | 9,756,083.35 | Long-termholding | |||
| UnionDevelopmentGroupCo.,Ltd. | 208,000.00 | 149,869,200.00 | Long-termholding | |||
| ShenzhenXiangjiangTradeCo.,Ltd. | 320,030.40 | 7,314,900.00 | Long-termholding | |||
| ShenzhenXinfangKnittingCo.,Ltd. | 156,000.00 | 1,703,903.00 | Long-termholding | |||
| JintianIndustry（Group）Co.,Ltd. | 14,831,681.50 | Long-termholding | ||||
| ShenzhenJiafengTextileIndustryCo.,Ltd. | 16,800,000.00 | Long-termholding | ||||
| ShenzhenXieliAutoCo.,Ltd. | 21,516,380.83 | Long-termholding | ||||
| ShenzhenSouthTextileCo.,Ltd. | 11,964,994.09 | Long-termholding | ||||
| ChangxingJunyingInvestment | Long-termholding |
Partmership
| Partmership | |||||
| Total | 1,418,634.82 | 202,125,461.27 | 31,753,913.67 | —— |
Othernote：None
19.Othernon-currentassets
Notapplicable
20.Investmentrealestate
(1)Investmentrealestateadoptedthecostmeasurementmode
√Applicable□Notapplicable
InRMB
| Items | House,Building | Landuseright | Constructioninprocess | Total |
| I.Originalprice | ||||
| 1.Balanceatperiod-beginning | 257,183,260.74 | 257,183,260.74 | ||
| 2.Increaseinthecurrentperiod | 1,277,175.96 | 1,277,175.96 | ||
| (1)Purchase | ||||
| （2）Inventory\Fixedassets\Transferredfromconstructioninprogress | 1,277,175.96 | 1,277,175.96 | ||
| (3)IncreasedofEnterpriseCombination |
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
| 4.Balanceatperiod-end | 258,460,436.70 | 258,460,436.70 | |
| II.Accumulatedamortization | |||
| 1.Openingbalance | 144,452,939.84 | 144,452,939.84 | |
| 2.Increasedamountofthe | 3,243,096.97 | 3,243,096.97 |
period
| period | |||
| (1)Withdrawal | 3,243,096.97 | 3,243,096.97 |
| 3.Decreasedamountoftheperiod | 216,879.16 | 216,879.16 | |
| （1）Dispose | |||
| （2）Otherout | 216,879.16 | 216,879.16 |
| 4.Balanceatperiod-end | 147,479,157.65 | 147,479,157.65 | |
| III.Impairmentprovision | |||
| 1.Balanceatperiod-beginning | |||
| 2.Increasedamountoftheperiod | |||
| (1)Withdrawal |
| 3.Decreasedamountoftheperiod |
| （1）Dispose |
| （2）Otherout |
| 4.Balanceatperiod-end | |||
| IV.Bookvalue | |||
| 1.Bookvalueatperiod-end | 110,981,279.05 | 110,981,279.05 | |
| 2.Bookvalueatperiod-beginning | 112,730,320.90 | 112,730,320.90 |
(2)Detailsoffixedassetsfailedtoaccomplishcertificationofproperty
□Applicable√Notapplicable
(3)InvestmentrealestatewithoutcertificateofownershipNotapplicable
21.Fixedassets
InRMB
Items
| Items | Year-endbalance | Year-beginningbalance |
| Fixedassets | 850,896,074.15 | 903,229,077.83 |
| Total | 850,896,074.15 | 903,229,077.83 |
(1)Listoffixedassets
InRMB
| Items | Houses&buildings | Machineryequipment | Transportations | Otherequipment | Total |
| I.Originalprice | |||||
| 1.Openingbalance | 554,790,414.11 | 1,019,329,690.87 | 10,160,884.32 | 32,219,076.82 | 1,616,500,066.12 |
| 2.Increasedamountoftheperiod | 527,317.31 | 620,824.60 | 1,472,337.85 | 2,620,479.76 | |
| (1)Purchase | 527,317.31 | 620,824.60 | 1,472,337.85 | 2,620,479.76 | |
| (2)Transferredfromconstructioninprogress | |||||
| (3)IncreasedofEnterpriseCombination |
| 3.Decreasedamountoftheperiod | 247,000.00 | 27,453.00 | 274,453.00 | ||
| （1）Disposal | 247,000.00 | 27,453.00 | 274,453.00 |
| 4.Balanceatperiod-end | 554,790,414.11 | 1,019,610,008.18 | 10,781,708.92 | 33,663,961.67 | 1,618,846,092.88 |
| II.Accumulateddepreciation | |||||
| 1.Openingbalance | 146,482,472.12 | 545,861,440.05 | 2,841,269.42 | 17,965,170.04 | 713,150,351.63 |
| 2.Increasedamountoftheperiod | 10,066,551.75 | 42,987,821.81 | 416,227.97 | 1,468,869.28 | 54,939,470.81 |
| (1)Withdrawal | 10,066,551.75 | 42,987,821.81 | 416,227.97 | 1,468,869.28 | 54,939,470.81 |
3.Decreaseinthereportingperiod
| 3.Decreaseinthereportingperiod | 237,218.80 | 23,221.57 | 260,440.37 | ||
| （1）Disposal | 237,218.80 | 23,221.57 | 260,440.37 |
| 4.Closingbalance | 156,549,023.87 | 588,612,043.06 | 3,257,497.39 | 19,410,817.75 | 767,829,382.07 |
| III.Impairmentprovision | |||||
| 1.Openingbalance | 120,636.66 | 120,636.66 | |||
| 2.Increaseinthereportingperiod | |||||
| （1）Withdrawal |
| 3.Decreaseinthereportingperiod |
| （1）Disposal |
| 4.Closingbalance | 120,636.66 | 120,636.66 | |||
| IV.Bookvalue | |||||
| 1.Bookvalueoftheperiod-end | 398,120,753.58 | 430,997,965.12 | 7,524,211.53 | 14,253,143.92 | 850,896,074.15 |
| 2.Bookvalueoftheperiod-begin | 408,187,305.33 | 473,468,250.82 | 7,319,614.90 | 14,253,906.78 | 903,229,077.83 |
(2)FixedassetstemporarilyidledNotapplicable
(3)FixedassetsrentedbyfinanceleasesNotapplicable
(4)FixedassetsleasedintheoperatingleasesNotapplicable
(5)FixedassetswithoutcertificateoftitlecompletedNotapplicable
（6）LiquidationoffixedassetsNotapplicable
22.Constructioninprogress
InRMB
Items
| Items | Year-endbalance | Year-beginningbalance |
| Constructioninprogress | 955,248,196.39 | 839,866,275.92 |
| Total | 955,248,196.39 | 839,866,275.92 |
(1)Listofconstructioninprogress
InRMB
| Items | Year-endbalance | Year-beginningbalance | ||||
| Bookbalance | Provisionfordevaluation | BookNetvalue | Bookbalance | Provisionfordevaluation | BookNetvalue | |
| IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7) | 954,824,238.97 | 954,824,238.97 | 839,443,318.50 | 839,443,318.50 | ||
| Other | 423,957.42 | 423,957.42 | 422,957.42 | 422,957.42 | ||
Total
| Total | 955,248,196.39 | 955,248,196.39 | 839,866,275.92 | 839,866,275.92 |
（2）Changesofsignificantconstructioninprogress
InRMB
| Name | Budget | Amountatyearbeginning | Increaseatthisperiod | Transferredtofixedassets | Otherdecrease | Balanceinyear-end | Proportion(%) | Progressofwork | Capitalisationofinterestaccumulatedbalance | Including：Currentamountofcapitalizationofinterest | Capitalisationofinterestratio（%) | Sourceoffunds |
| IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7) | 1,959,498,401.80 | 839,443,318.50 | 115,380,920.47 | 954,824,238.97 | 48.73% | Themainbodyofthebuildinghasbeencapped | Other | |||||
| Total | 1,959,498,401.80 | 839,443,318.50 | 115,380,920.47 | 954,824,238.97 | -- | -- | -- |
（3）Impairmentprovisionofconstructionprojects
Notapplicable
（4）Engineeringmaterial
Notapplicable
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredatcostmethods
□Applicable√Notapplicable
(2)Productivebiologicalassetsmeasuredatfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Inapplicable
25.RighttouseassetsNotapplicable
26.Intangibleassets
(1)Information
InRMB
Items
| Items | Landuseright | Patentright | Non-proprietarytechnology | Software | Total |
| I.Originalprice | |||||
| 1.Balanceatperiod-beginning | 48,258,239.00 | 11,825,200.00 | 2,936,607.54 | 63,020,046.54 | |
| 2.Increaseinthecurrentperiod | 853,431.04 | 853,431.04 | |||
| (1)Purchase | 853,431.04 | 853,431.04 | |||
| （2）InternalR&D | |||||
| （3）IncreasedofEnterpriseCombination |
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
| 4.Balanceatperiod-end | 48,258,239.00 | 11,825,200.00 | 3,790,038.58 | 63,873,477.58 | |
| II.Accumulatedamortization | |||||
| 1.Balanceatperiod-beginning | 12,591,751.27 | 11,825,200.00 | 2,085,098.93 | 26,502,050.20 | |
| 2.Increaseinthe | 447,720.00 | 302,043.64 | 749,763.64 |
currentperiod
| currentperiod | ||||
| (1)Withdrawal | 447,720.00 | 302,043.64 | 749,763.64 |
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
| 4.Balanceatperiod-end | 13,039,471.27 | 11,825,200.00 | 2,387,142.57 | 27,251,813.84 | |
| III.Impairmentprovision | |||||
| 1.Balanceatperiod-beginning | |||||
| 2.Increaseinthecurrentperiod | |||||
| (1)Withdrawal |
| 3.Decreasedamountoftheperiod |
| （1）Disposal |
| 4.Balanceatperiod-end | ||||
| 4.Bookvalue | ||||
| 1.Bookvalueatperiod-end | 35,218,767.73 | 1,402,896.01 | 36,621,663.74 | |
| 2.Bookvalueatperiod-beginning | 35,666,487.73 | 851,508.61 | 36,517,996.34 |
TheproportiontheintangibleassetsformedfromtheinternalR&DthroughtheCompanyamountthebalanceoftheintangibleassetsattheperiod-end.
(2)DetailsoffixedassetsfailedtoaccomplishcertificationoflanduserightNotapplicable
27.R&DexpensesNotapplicable
28.Goodwill
(1)Originalbookvalueofgoodwill
InRMB
Nameoftheinvesteesortheeventsformed
goodwill
| Nameoftheinvesteesortheeventsformedgoodwill | Openingbalance | Increase | Decrease | Closingbalance | ||
| Themergerofenterprises | disposition | |||||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| ShenzhenShenfangImport&ExportCo.,Ltd. | 82,246.61 | 82,246.61 | ||||
| ShenzhenShengboOptoelectronicTechnologyCo.,Ltd | 9,614,758.55 | 9,614,758.55 | ||||
| Total | 11,864,346.37 | 11,864,346.37 | ||||
（2）Impairmentofgoodwill
InRMB
| Investee | Balanceinyear-begin | Increasedatthisperiod | .Decreasedatthisperiod | Closingbalance | ||
| Provision | disposition | |||||
| ShenzhenBeautyCenturyGarmentCo., | 2,167,341.21 | 2,167,341.21 | ||||
Ltd.
| Ltd. | |||
| ShenzhenShenfangImport&ExportCo.,Ltd. | 82,246.61 | 82,246.61 | |
| ShenzhenShengboOptoelectronicTechnologyCo.,Ltd | 9,614,758.55 | 9,614,758.55 | |
| Total | 11,864,346.37 | 11,864,346.37 |
29.Longtermamortizeexpenses
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Amortizedexpenses | Otherloss | Balanceinyear-end |
| Renovationfee | 1,631,423.46 | 183,409.34 | 1,448,014.12 | ||
| Other | 1,061,327.21 | 100,945.26 | 960,381.95 | ||
| Total | 2,692,750.67 | 284,354.60 | 2,408,396.07 |
30.Deferredincometaxassets/deferredincometaxliabilities
（1）Detailsoftheun-recognizeddeferredincometaxassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Assetsdepreciationreserves | 20,264,822.69 | 4,567,562.50 | 17,933,263.39 | 4,478,077.03 |
| Unattainedinternalsalesprofits | 2,457,864.47 | 368,679.67 | 2,502,421.73 | 375,363.26 |
Changesinfairvalueofavailableforsalefinancialassets
| Changesinfairvalueofavailableforsalefinancialassets | 122,232.17 | 30,558.06 | 2,371,674.55 | 592,918.64 |
| Temporarydifferenceformedbytheinterestofshareincentiverepurchase | 686,670.00 | 171,667.50 | 686,670.00 | 171,667.50 |
| Total | 23,531,589.33 | 5,138,467.73 | 23,494,029.67 | 5,618,026.43 |
(2)Detailsoftheun-recognizeddeferredincometaxliabilities
InRMB
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofinvestmentsinotherequityinstruments | 202,125,461.26 | 50,531,365.32 | 202,125,461.26 | 50,531,365.32 |
| Thedifferencebetweentheinitialrecognitioncostandtaxbaseoflong-termequityinvestmentofGuanhuaCompany | 62,083,693.36 | 15,520,923.34 | 77,651,921.36 | 19,412,980.34 |
| Total | 264,209,154.62 | 66,052,288.66 | 279,777,382.62 | 69,944,345.66 |
(3)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set
InRMB
| Items | Trade-offbetweenthedeferredincometaxassetsandliabilities | Endbalanceofdeferredincometaxassetsorliabilitiesafteroff-set | Trade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-begin | Openingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set |
| Deferredincometaxassets | 5,138,467.73 | 5,618,026.43 | ||
| Deferredincometaxliabilities | 66,052,288.66 | 69,944,345.66 |
(4)Detailsofincometaxassetsnotrecognized
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
Deductibletemporarydifference
| Deductibletemporarydifference | 145,880,695.37 | 156,410,415.69 |
| Deductibleloss | 629,783,473.03 | 605,506,184.05 |
| Total | 775,664,168.40 | 761,916,599.74 |
(5)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears
InRMB
| Year | Balanceinyear-end | Balanceinyear-begin | Remark |
| 2021 | 1,128,868.47 | 1,128,868.47 | |
| 2023 | 129,226,944.33 | 129,226,944.33 | |
| 2024 | 148,095,898.11 | 148,095,898.11 | |
| 2025 | 83,287,153.64 | 83,287,153.64 | |
| 2026 | 120,820,767.06 | 120,820,767.06 | |
| 2028 | 22,594,586.97 | 22,594,586.97 | |
| 2029 | 100,351,965.47 | 100,351,965.47 | |
| 2030 | 24,277,288.98 | ||
| Total | 629,783,473.03 | 605,506,184.05 | -- |
Othernote：
None
31.Othernon-currentassets
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin | ||||
| Bookbalance | Provisionfordevaluation | Bookvalue | Bookbalance | Provisionfordevaluation | Bookvalue | |
| Advancepaymentforequipmentfund | 3,079,321.10 | 3,079,321.10 | ||||
| Total | 3,079,321.10 | 3,079,321.10 | ||||
Othernote：None
32.Short-termborrowings
（1）Categoriesofshort-termloansNotapplicable
(2)SituationofOverdueOutstandingShort-TermBorrowing
Notapplicable
33.TransactionalfinancialliabilitiesNotapplicable
34.DerivativefinancialliabilityNotapplicable
35.NotespayableNotapplicable
36.Accountspayable
(1)Listofaccountspayable
InRMB
Items
| Items | Balanceinyear-end | Balanceinyear-begin |
| Within1year | 224,275,297.87 | 238,370,055.75 |
| 1-2years | 125,319.05 | 196,392.86 |
| 2-3years | 1,486,921.12 | 1,691,830.35 |
| 3-4years | 49,238.25 | 37,402.40 |
| 4-5years | 37,402.40 | 35,075.05 |
| Over5years | 1,002,089.28 | 967,014.23 |
| Total | 226,976,267.97 | 241,297,770.64 |
（2）SignificantaccountspayablethatagedoveroneyearNotapplicable
37.Advanceaccount
(1)ListofAdvanceaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Within1year | 22,713,837.75 | 27,541,644.14 |
| 1-2years | ||
| 2-3years | ||
| Over3years | 639,024.58 | 639,024.58 |
Total
| Total | 23,352,862.33 | 28,180,668.72 |
(2)SignificantadvancefromcustomersagingoveroneyearNone
38.Contractliabilities
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| Within1year | 2,372,551.70 | 2,342,917.75 |
| 1-2years | 6,531.15 | 6,531.15 |
| Total | 2,379,082.85 | 2,349,448.90 |
39.PayableEmployeewage
(1)ListofPayrollpayable
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | Payableinthisperiod | Balanceinyear-end |
| I.Short-termemployeebenefits | 38,556,180.20 | 77,113,020.47 | 82,396,880.07 | 33,272,320.60 |
| II.Post-employmentbenefits | 3,468,908.25 | 1,930,529.00 | 1,538,379.25 | |
| III.Terminationbenefit | 2,985,500.66 | 2,985,500.66 | ||
| Total | 38,556,180.20 | 83,567,429.38 | 87,312,909.73 | 34,810,699.85 |
（2）Short-termremuneration
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | decreaseinthisperiod | Balanceinyear-end |
| 1.Wages,bonuses,allowancesandsubsidies | 36,751,528.90 | 68,183,820.87 | 74,342,872.85 | 30,592,476.92 |
| 2.Employeewelfare | 3,519,842.56 | 3,519,842.56 | ||
| 3.Socialinsurancepremiums | 764,603.19 | 310,655.32 | 453,947.87 | |
| Including：Medicalinsurance | 612,352.02 | 260,716.62 | 351,635.40 | |
| Workinjuryinsurance | 37,141.01 | 9,980.99 | 27,160.02 |
Maternityinsurance
| Maternityinsurance | 115,110.16 | 39,957.71 | 75,152.45 | |
| 4.Publicreservesforhousing | 2,831,234.28 | 2,831,234.28 | ||
| 5.Unionfundsandstaffeducationfee | 1,804,651.30 | 1,813,519.57 | 1,392,275.06 | 2,225,895.81 |
| Total | 38,556,180.20 | 77,113,020.47 | 82,396,880.07 | 33,272,320.60 |
（3）Definedcontributionplanslisted
InRMB
| Items | Balanceinyear-begin | Increaseinthisperiod | decreaseinthisperiod | Balanceinyear-end |
| 1.Basicold-ageinsurancepremiums | 2,531,567.29 | 1,040,522.72 | 1,491,044.57 | |
| 2.Unemploymentinsurance | 61,710.88 | 14,456.20 | 47,254.68 | |
| 3.Annuitypayment | 875,630.08 | 875,550.08 | 80.00 | |
| Total | 3,468,908.25 | 1,930,529.00 | 1,538,379.25 |
Othernote：
None
40.TaxPayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| VAT | 430,359.01 | 2,992,712.57 |
| EnterpriseIncometax | 4,752,036.65 | 18,567,808.63 |
| IndividualIncometax | 485,695.72 | 441,485.02 |
| CityConstructiontax | 40,032.38 | 209,489.81 |
| Housepropertytax | 1,558,824.88 | 127,685.17 |
| Educationalsurtax | 27,158.67 | 149,635.58 |
| Other | 59,631.36 | 56,733.55 |
| Total | 7,353,738.67 | 22,545,550.33 |
Othernote：None
41.Otherpayable
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
Otherpayable
| Otherpayable | 151,289,669.81 | 152,645,780.14 |
| Total | 151,289,669.81 | 152,645,780.14 |
（1)Interestpayable
Notapplicable
(2)DividendspayableNotapplicable
(3)Otheraccountspayable
(1)Otheraccountspayablelistedbynatureoftheaccount
InRMB
| Items | Balanceinyear-end | Balanceinyear-begin |
| EngineeringEquipmentfund | 33,859,305.46 | 36,025,975.90 |
| Unitaccount | 52,701,920.52 | 51,891,693.06 |
| Deposit | 31,140,665.22 | 27,258,145.87 |
| Restrictivestockrepurchaseobligation | 7,844,373.00 | 16,825,673.40 |
| Other | 25,743,405.61 | 20,644,291.91 |
| Total | 151,289,669.81 | 152,645,780.14 |
(2)Othersignificantaccountspayablewithagingoveroneyear
Notapplicable
42.LiabilitiesclassifiedasholdingforsaleNotapplicable
43.Non-currentliabilitiesduewithin1year
Notapplicable
44.Othercurrentliabilities
Notapplicable
45.Long-termborrowingNotapplicable
46.BondpayableNotapplicable
47.LeaseliabilityNotapplicable
48.Long-termpayableNotapplicable
49.LongtermpayrollpayableNotapplicable
（1）Statementoflong-termpayrollpayableNotapplicable
（2）ChangeofdefinedbenefitplansNotapplicable
50.PredictedliabilitiesNotapplicable
51.Deferredincome
InRMB
Items
| Items | Beginningofterm | Increasedthisterm | Decreasedthisterm | Endofterm | Reason |
| GovemmentSubsidy | 121,264,571.22 | 1,190,000.00 | 6,070,094.81 | 116,384,476.41 | Formationofgovernmentsubsidy |
| Total | 121,264,571.22 | 1,190,000.00 | 6,070,094.81 | 116,384,476.41 | -- |
Detailsofgovernmentsubsidies：
InRMB
Items
| Items | Beginningofterm | Newsubsidyincurrentperiod | Amounttransferredtonon-operationalincome | Otherincomerecordedinthecurrentperiod | Amountofcostdeductedinthecurrentperiod | Otherchanges | Endofterm | Asset-relatedorincome-related |
| Textilespecialfunds | 428,571.41 | 71,428.58 | 357,142.83 | Relatedtoassets | ||||
| GrantfundsforTFT-LCDpolarizerindustryproject | 3,033,333.34 | 649,999.98 | 2,383,333.36 | Relatedtoassets | ||||
| GrantfundsforTFT-LCDpolarizernarrowline(line5)project | 1,500,000.00 | 250,000.02 | 1,249,999.98 | Relatedtoassets | ||||
| Purchaseofimportedequipmentandtechnology | 501,926.58 | 87,545.10 | 414,381.48 | Relatedtoassets | ||||
| InnovationandventurecapitalforTFT-LCDpolarierIproject | 150,000.00 | 25,000.02 | 124,999.98 | Relatedtoassets | ||||
| ShenzhenpolarizingmaterialsandTechnologyEngineeringLaboratoryinnovationventurecapital | 262,500.00 | 25,000.02 | 237,499.98 | Relatedtoassets | ||||
| ShenzzhenEngineeringlaboratorypolarizingmaterialandtechnicalengineering | 2,625,000.00 | 250,000.02 | 2,374,999.98 | Relatedtoassets | ||||
| CapitalfundingforTechnologyCenter | 1,575,000.00 | 150,000.00 | 1,425,000.00 | Relatedtoassets | ||||
| Subsidyfundstosupporttheintroductionofadvancedtechnology | 43,164.31 | 7,194.06 | 35,970.25 | Relatedtoassets | ||||
| LocalsupportingfundsforTFT-LCDpolarizerPhaseIIProject(line6) | 12,750,000.00 | 750,000.00 | 12,000,000.00 | Relatedtoassets | ||||
| StatesubsidyforTFT-LCDpolarizerPhaseIIProject(line6) | 425,000.00 | 25,000.02 | 399,999.98 | Relatedtoassets | ||||
| keytechnologyresearchanddevelopmentprojectsofopticalcompensationfilmforpolarize | 3,625,000.00 | 250,000.02 | 3,374,999.98 | Relatedtoassets | ||||
| InnovationandventurecapitalforTFT-LCDpolarizerPhaseIIProject(line6) | 8,500,000.00 | 500,000.00 | 8,000,000.00 | Relatedtoassets |
StrategicindustriesDevelopmentfundofGuangdongProvince
| StrategicindustriesDevelopmentfundofGuangdongProvince | 21,250,000.00 | 1,250,000.04 | 19,999,999.96 | Relatedtoassets | |||
| GrantsofPurchaseequipmentofTFT-LCDpolarizingfilmphaseIIproject | 25,500,000.00 | 1,499,999.99 | 24,000,000.01 | Relatedtoassets | |||
| Energysavingtransformationgrantfunds | 56,815.63 | 0.00 | 56,815.63 | Relatedtoassets | |||
| Oldelevatorrenovationfundsubsidies | 1,004,752.95 | 55,877.85 | 948,875.10 | Relatedtoassets | |||
| PolarizationIndustrializationProjectforSuperLarge-sizedTVs(Line7)CentralBudgetInvestment | 30,000,000.00 | 0.00 | 30,000,000.00 | Relatedtoassets | |||
| Research&developmentsubsidyforkeytechnologiesofultra-thinIPSpolarizerforsmartphoneterminals | 2,000,000.00 | 0.00 | 2,000,000.00 | Relatedtoassets | |||
| FinancecommitteeofShenzhenmunicipality(R&Dofkeytechnologyofhigh-performancepolarizerforlargesizedisplaypanelof2018N007) | 5,000,000.00 | 1,000,000.00 | 0.00 | 6,000,000.00 | Relatedtoassets | ||
| SpecialSubsidyforImprovingAtmosphericEnvironmentQualityinShenzhen | 1,033,507.00 | 221,465.76 | 812,041.24 | Relatedtoassets | |||
| 2020Doublesubsidiesforspecialtechnologicalrenovationinvestmentproject | 190,000.00 | 1,583.33 | 188,416.67 | Relatedtoassets | |||
| Total | 121,264,571.22 | 1,190,000.00 | 6,070,094.81 | 116,384,476.41 |
Othernote：
(1).Accordingtothe"NoticeonNationalDevelopmentandReformCommissiontotheGeneralOfficeofthetextileprojectmanagementofthespecialfunds"(Faigaiban[2006]2841),onDecember2006,theCompanyreceived"Textilespecial"fundsRMB2,000,000.00fromShenzhenFinanceBureau.Thecompanywilluse14yearsasassetdepreciationperiodforamortizationwiththecorrespondingequipmentincurrentperiod.Theamortizationinaccordancewiththecorrespondingequipment,TheotherincomeincurrentperiodisRMB71,428.58,theendingbalanceofuncompletedamortizationisRMB357,142.83.
2.InaccordancewiththeNoticeofForwardingtheReplyofGeneralOfficeofStateDevelopmentandReform
CommissionRegardingSpecialPlanforStrategicTransformationandIndustrializationofColorTVIndustryissuedbyShenzhenDevelopmentandReformCommission(ShenFaGai(2011)No.823),StateDevelopmentandReformCommissionapprovedincludingtheprojectofindustrializationofpolarizersheetforTFT-LCDofSAPOPhotoelectricintothespecialplanforstrategictransformationandindustrializationofcolorTVindustryin2010andappropriatednationalaidofRMB10,000,000.00toSAPOPhotoelectricfortheresearchand
developmentintheprocessoftheprojectofindustrializationandthepurchaseofrequiredsoftwareandhardwareequipment.OnJune2012andSeptember2013,thecompanyreceivedthenationalgrantsofRMB10,000,000.00..AccordingtotheNoticeofIssuingtheGovernmentalInvestmentPlanfor2011RegardingDemonstrationProjectofHigh-techIndustrializationIncludingSpecializedServicesSuchAsDisasterRecoveryofFinancialInformationSystemissuedbyShenzhenDevelopmentandReformCommission(ShenFaGai(2012)No.3),theCompanyreceivedsubsidyofRMB3,000,000.00fortheprojectofindustrializationofpolarizersheetforTFT-LCDinApril2012.Ourcompanywilluse10yearsasassetdepreciationperiodforamortizationincurrentperiod.TheotherincomeincurrentperiodisRMB649,999.98.andthebalanceamountofunfinishedfinalamortizationisRMB2,383,333.36.
3.AccordingtotheNoticeaboutthePlanforSupportingtheSecondGroupofEnterprisesinBiological,Internet,
NewEnergyandNewMaterialIndustrieswithSpecialDevelopmentFunds(ShenFaGai(2011)No.1782),theCompanyreceivedsubsidyofRMB5,000,000.00forthenarrow-widthline(line5)ofphase-IprojectofpolarizersheetforTFT-LCDonFebruary2012.TheCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB250,000.02andthebalanceamountofunfinishedfinalamortizationisRMB1,249,999.98.
4.OnOctober2013,Thecompanyreceivedthegrantsforthepurchaseofimportedequipmentandtechnologyin2012ofRMB1,750,902.00,theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB87,545.10andthebalanceamountofunfinishedfinalamortizationisRMB414,381.48.
5.OnDecember2013，ThecompanyreceivedthefundsforinnovationandentrepreneurshipofTFT-LCDpolarizingprojectfromPingshanNewDistrictDevelopmentandFinanceBureauofRMB500,000.00(matchingfundingcategory),theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB25,000.02andthebalanceamountofunfinishedfinalamortizationisRMB124,999.98.
6.OnDecember2013，ThecompanyreceivedthefundsforinnovationandentrepreneurshipofTFT-LCDpolarizingprojectfromPingshanNewDistrictDevelopmentandFinanceBureauofRMB500,000.00(matchingfundingcategory),theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB25,000.02andthebalanceamountofunfinishedfinalamortizationisRMB237,499.98.
7.AccordingtotheApprovalofApplicationofSAPOPhotoelectricforProjectFundsforShenzhenPolarization
MaterialandTechnologyEngineeringLaboratory(ShenFaGai(2012)No.1385),ShenzhenPolarizationMaterialandTechnologyEngineeringLaboratorywasapprovedtobeestablishedonthestrengthofSAPOPhotoelectricwithtotalprojectinvestmentofRMB24,390,000.00.AsapprovedbyShenzhenMunicipalPeople'sGovernment,thisprojectwasincludedintheplanforsupportingthefourthgroupofenterpriseswithspecialfundforthedevelopmentofstrategicnewindustriesinShenzhenin2012(newmaterialindustry).AccordingtotheNoticeofIssuingthePlanforSupportingtheFourthGroupofEnterpriseswithSpecialFundforDevelopmentofStrategicNewIndustriesinShenzhenin2012(ShenFaGai(2012)No.1241),theCompanyreceivedsubsidyofRMB5,000,000.00onDecember2012forpurchasinginstrumentsandequipmentandimprovingexistingtechnologicalequipmentandtestconditions.ThefundgapwillbefilledbytheCompanythroughraisingfundsbyitself.theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB250,000.02andthebalanceamountofunfinishedfinalamortization
isRMB2,374,999.98.
8.Accordingtothe“AnnouncementontheIdentificationofTechnologyCentersof24EnterprisesincludingShenzhenYuanwangguInformationTechnologyJointStockCompanyLimitedastheMunicipalResearchandDevelopmentCenters(TechnicalCenter)”(SJMXXJS[2013]No.137),theresearchanddevelopmentcenterofSAPOhasbeenregardedas2012annualmunicipalR&Dcenter.InDecember2013,thecompanyhasreceivedthefundingsubsidyofRMB3millionfortheconstructionofthetechnicalcenter.theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheOtherincomeincurrentperiodisRMB150,000.00andthebalanceamountofunfinishedfinalamortizationisRMB1,425,000.00.
9.OnMarch2014thecompanyreceivedtheintroductionofadvancedtechnologyimportsubsidyfundsofRMB1
43,881.00fromShenzhenFinanceCommittee,theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB7,194.06andthebalanceamountofunfinishedfinalamortizationisRMB35,970.25.
10.Accordingtothe"ShenzhenMunicipalDevelopmentandReformCommissionReplyforSAPOapplicationforlocalmatchingfundsofTFT-LCDpolarizingfilmIIproject(Line6)"(ShenzhenDRC[2013]No.1771),thecompanyobtainedTFT-LCDpolarizingfilmIIproject(line6)localmatchingfundsofRMB15,000,000.00inApril2014.TFT-LCDpolarizerPhaseIIproject(Line6)hittheexpectedavailablestateandtransferredtofixedassetsinJune2018.Amortizedbyaperiodof10yearsindepreciationofrelevantassets,TheotherincomeincurrentperiodisRMB750,000.00andthebalanceamountofunfinishedfinalamortizationisRMB12,000,000.00.
11.InDecember2014,thecompanyreceivedinnovationventurecapital(matchingfundingcategory)forPingShanDistrictDevelopmentandFinanceBureauofTFT-LCDpolarizingfilmIIproject(line6)ofRMB500,000.00.TFT-LCDpolarizerPhaseIIproject(Line6)hittheexpectedavailablestateandtransferredtofixedassetsinJune2018.Amortizedbyaperiodof10yearsindepreciationofrelevantassets,RMB25,000.02wasincludedintootherincomesinthecurrentperiodandtheendingoutstandingbalancewasRMB399,999.98.
12.OnJan.2015,thecompanyreceivedRMB5millionofgrantsforkeytechnologyresearchanddevelopmentprojectsofopticalcompensationfilmforpolarizerfromShenzhenScientificandTechnologicalInnovationCommittee.Thecompanyhasreachedtheexpecteddateofuseoftheassets.,theCompanyplannedtoamortizethesubsidyover10yearsaccordingtothedepreciationperiodofrelevantassets.TheotherincomeincurrentperiodisRMB250,000.02andthebalanceamountofunfinishedfinalamortizationisRMB3,374,999.98.
13.Accordingto"NationalDevelopmentandReformCommissionissuedonindustrialtransformationandupgradingprojects(2
nd
industrialrestructuring)notifythecentralbudgetfor2014investmentplan"(NDRCInvestment[2014]No.1280),thecompanyobtainedTFT-LCDpolarizerIIproject(line6)stategrantsofRMB10,000,000.00inDecember2014.TFT-LCDpolarizerPhaseIIproject(Line6)hittheexpectedavailablestateandtransferredtofixedassetsinJune2018.Amortizedbyaperiodof10yearsindepreciationofrelevantassets,RMB500,000.00元wasincludedintootherincomesinthecurrentperiodandtheendingoutstandingbalancewasRMB8,000,000.00.
14.Accordingto“ReplyonCongregatingDevelopmentinEmergingIndustrialAreaStrategicPilotImplementSchemeofGuangdongProvince”(ReformandDevelopmentOfficeHigh-Tech[2013]No.2552,OnDecember2015,theCompanyreceivedRMB20millionofthepilotprojectfund(periodIIprojectofTFT-LCD
polarizer).OnOctober2016,theCompanyreceivedRMB5millionofShenzhenstrategicemergingindustriesandthefuturedevelopmentofindustrialmatchingfunds,TFT-LCDpolarizerPhaseIIproject(Line6)hittheexpectedavailablestateandtransferredtofixedassetsinJune2018.Amortizedbyaperiodof10yearsindepreciationofrelevantassets,RMB1,250,000.04wasincludedintootherincomesinthecurrentperiodandtheendingoutstandingbalancewasRMB1,250,000.04.
15.AccordingtoReformandDevelopmentCommissionofShenzhenMunicipalitysendingthenoticeof“ReplyofNationalReformandDevelopmentOfficeonInvestinginPetrifactionandMedicineProjectwithinCentralBudgetof2013forIndustryStructureAdjustmentSpecialProject”(ReformandDevelopmentCommissionofShenzhenMunicipality[2013]No.1449),theCompanyreceived30millionRMBofnewproductionlineofTFT-LCDpolarizerprojectperiodIIandequipmentpurchasesubsidyinAugust2015,December2015andSeptember2016.TFT-LCDpolarizerPhaseIIproject(Line6)hittheexpectedavailablestateandtransferredtofixedassetsinJune2018.Amortizedbyaperiodof10yearsindepreciationofrelevantassets,RMB1,499,999.99wasincludedintootherincomesinthecurrentperiodandtheendingoutstandingbalancewasRMB24,000,000.01.
16.In2015andIn2016,theCompanyreceivedthesubsidyfundsof202,608.00RMBand34,535.45RMBonenergy-savingreconstruction,amortizedby8-yeardepreciationlifeoftherelevantasset,theOtherincomewasRMB0.00atthecurrentperiod,theendingbalancewithoutamortizationwasRMB56,815.63.
17.In2017,thecompanyreceived1,218,640.00yuanfortheoldelevatorupgradesubsidy,thecompanyreceived160,800.00yuanfortheoldelevatorupgradesubsidyin2018,whichwasapportionedaccordingtothedepreciationperiodoftherelevantassets.Thecurrentperiodwasincludedinotherincomeof115,760.00yuan,andtheunassessedbalanceattheendoftheperiodwas986,836.67yuan.SubsidiariesthatrunpropertymanagementbusinessweresubsidizedbyRMB164,580.00forupdatingandtransformingoldandobsoleteelevatorsthisyearandthissubsidywasincome-related;RMB55,877.85wasincludedintotheoperatingincomeinthecurrentperiodandtheendingoutstandingbalancewasRMB948,875.10.
18.AccordingtotheNoticeoftheMinistryofIndustryandInformationTechnologyoftheNationalDevelopmentandReformCommissionforReleasingtheCentralBudgetaryInvestmentPlanofthe2017oftheTechnicalTransformationoftheElectronicInformationIndustry(NDRCInvestment{2017}No.1649),thecompanyreceivedoversizeTVforuseinNovember2017.InNovember2017,thecompanyreceivedancentralbudgetaryinvestmentofRMB30,000,000.00oftheoversizedTVpolarizerindustryproject.Thecompanyshalltransferthedeferredincometothecurrentprofitorlossfortheperiodofdepreciationfromthedatewhentherelevantassetsarereadyfortheirintendeduse.
19.InaccordancewiththedevelopmentplansandpoliciesofShenzhenMunicipalityforStrategicemergingIndustries,theManagementMeasuresofShenzhenCityonFundsforScientificandTechnologicalResearchandDevelopment,theManagementMeasuresofShenzhenCityonScienceandTechnologyPlanProjectandotherrelevantdocuments,ShenzhenScienceandTechnologyInnovationCommissionandSAPOPhotoelectriccompletedthedevelopmentofthekeytechnologyofthe20170535ultra-thinpolarizerusedinIPSsmartphoneterminalintheShenzhenScienceandTechnologyPlanissuedbySFG[2017]No.1447document.InFebruary2018,thecompanyreceivedfundingfromShenzhenScienceandTechnologyInnovationCommissionof2,000,000yuanforR&D.Thecompanywilltransferthedeferredincometothecurrentprofitandlossaccordingtothedepreciationperiodfromthedatewhentherelevantassetsreachtheexpectedusablestatus.
20.AccordingtoMeasuresforManagementofScienceandTechnologyResearch&DevelopmentFundsin
Shenzhen,MeasuresforManagementofProjectsinShenzhenMunicipalScienceandTechnologyProgramandotherdocumentsconcerned,SAPOPhotoelectricCo.,Ltd.andShenzhenScienceandTechnologyInnovationCommitteeenteredintoaContractofProjectsinShenzhenMunicipalScienceandTechnologyProgramthroughconsultationtocompletedevelopmentofkeytechniquesforhigh-performancepolarizersfor2018N007jumbodisplaypanelsintheprogramdeliveredinShenFaGai[2018]No.324document.TheCompanywasgrantedwithafinancialsubsidyofRMB1,000,000.00thisyear.TheCompanyamortizedandtransferredthedeferredincomeintothecurrentprofitandlossbyperiodofdepreciationafterrelevantassetshittheexpectedavailablestate.
21.AccordingtotheMeasuresofShenzhenMunicipalityonSubsidyforImprovingAtmosphericEnvironmentalQuality(2018-2020)(SRHG[2018]No.2),inDecember2019,theCompanyreceivedasubsidyof1,033,507.00yuanfromShenzhenMunicipalHumanSettlementsCommittee.TheCompanycompletedthetransformationoftherelevantassetsintofixedassetsinDecember2019.TheCompanywillallocatetherelevantassetsaccordingtotheirdepreciationyearsinJanuary2020,TheCompanywasgrantedwithafinancialsubsidyofRMB1,000,000.00thisyear.Thecurrentperiodischargedtothecurrentprofitandlossof221465.76yuan，theendingbalancewithoutamortizationwasRMB812,041.24.
22.AccordingtotheShenzhenActionPlanonImplementingTechnicalTransformationMultiplicationPlantoExpandEffectiveIndustrialInvestment(2017-2020)"(SFB[2017]No.22)andShenzhen'sSeveralMeasuresonImplementingTechnicalTransformationMultiplicationPlantoExpandEffectiveIndustrialInvestment(SFBG[2017]No.9),inJune2020,thecompanyreceivedthefirstsubsidyof190,000.00yuanforthespecialtechnicaltransformationinvestmentprojectoftechnicaltransformationmultiplicationin2020,whichwasallocatedaccordingtothedepreciationperiodofrelatedassetsof10years.Otherincomeof1,583.33yuanwasincludedinthecurrentperiod,andtheundistributedbalanceattheendoftheperiodwas188,416.67yuan.
52..Othernon-currentliabilitiesNotapplicable
53.Stockcapital
InRMB
Year-beginni
ngbalance
| Year-beginningbalance | Changed（+，-） | Balanceinyear-end | |||||
| Issuanceofnewshare | Bonusshares | Capitalizationofpublicreserve | Other | Subtotal | |||
| Totalofcapitalshares | 509,338,429.00 | -1,503,240.00 | -1,503,240.00 | 507,835,189.00 | |||
Othernote：
OnFebruary26,2020,theCompanyrepurchasedandcancelledtherestrictedstocksheldbytheresignedincentiveobjects,thusreducingthesharecapitalby69，900yuan.
OnApril10,2020,theCompanyrepurchasedandcancelledthesecondrestrictedstocksthatdidnotmeettheconditionsforliftingtherestrictionsonsalesandtherestrictedstocksheldbytheincentiveobjectswholeftthecompanytotaled1,433,340shares,andthesharecapitaldecreasedby1,433,340.00yuan.
54.Otherequityinstruments
(1)Basicinformationontheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiodNotapplicable
(2)Movementoftheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiodNotapplicable
55.Capitalreserves
InRMB
Items
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Sharepremium | 1,839,805,031.94 | 7,110,325.20 | 1,832,694,706.74 | |
| Other | 135,117,216.09 | 135,117,216.09 | ||
| Total | 1,974,922,248.03 | 7,110,325.20 | 1,967,811,922.83 |
Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:
Thecompanyreduceditscapitalreserve(capitalpremium)by7,110,325.20yuanduetothecancellationofrestrictedstockrepurchase.
56.Treasurystock
InRMB
| Items | Year-beginningbalance | Increaseinthecurrent | Decreaseinthecurrentperiod | Year-endbalance |
| Treasurpystock | 16,139,003.40 | 8,613,565.20 | 7,525,438.20 | |
| Total | 16,139,003.40 | 8,613,565.20 | 7,525,438.20 |
Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:
Thisyear,1,503,240shareswererepurchasedandcancelled,andthetreasurysharesdecreasedby8,613,565.20yuan.
57.Othercomprehensiveincome
InRMB
| Items | Year-beginningbalance | Amountofcurrentperiod | Year-endbalanc | |||||
| Amountincurred | Less：Amount | Less：Prior | Less：Income | After-tax | After-tax | |||
e
| beforeincometax | transferredintoprofitandlossinthecurrentperiodthatrecogniedintoothercomprehensiveincomeinpriorperiod | periodincludedinothercompositeincometransfertoretainedincomeinthecurrentperiod | taxexpenses | attributetotheparentcompany | attributetominorityshareholder | e | ||
| 1.Othercomprehensiveincomethatcannotbereclassifiedinthelossandgaininthefuture | 118,183,658.54 | 2,249,442.38 | 562,360.58 | 1,687,081.80 | 119,870,740.34 | |||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 118,183,658.54 | 2,249,442.38 | 562,360.58 | 1,687,081.80 | 119,870,740.34 | |||
| 2.Othercomprehensiveincomereclassifiabletoprofitorlossinsubsequentperiods | 1,554,124.77 | 388,316.57 | 388,316.57 | 1,942,441.34 | ||||
| Translationdifferencesoffinancialstatementsdenominated | 1,554,124.77 | 388,316.57 | 388,316.57 | 1,942,441.34 | ||||
| Totalofothercomprehensiveincome | 119,737,783.31 | 2,637,758.95 | 562,360.58 | 2,075,398.37 | 121,813,181.68 |
Othernotesincludethevalidpartofgainandlossofacash-flowhedgeconvertedintoinitialamountofarbitrageditemsforadjustment:
58.SpecialreservesNotapplicable
59.Surplusreserves
InRMB
| Items | Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| Statutorysurplusreserve | 90,596,923.39 | 90,596,923.39 |
Total
| Total | 90,596,923.39 | 90,596,923.39 |
Notetosurplusreserve,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:None
60.Retainedprofits
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Retainedearningsbeforeadjustmentsattheyearbeginning | 49,307,764.03 | -57,774,473.41 |
| Retainedearningsafteradjustmentsattheyearend | 49,307,764.03 | -57,774,473.41 |
| Add:NetprofitattributabletoownersoftheCompanyfortheperiod | 719,734.74 | 7,832,287.98 |
| Retainedprofitsattheperiodend | 50,027,498.77 | -49,942,185.43 |
Asregardsthedetailsofadjustedthebeginningundistributedprofits
(1)AstheretroactiveadjustmentonEnterpriseAccountingStandardsanditsrelatednewregulations,theaffectedbeginningundistributedprofitsareRMB0.00.
(2)Asthechangeoftheaccountingpolicy,theaffectedbeginningundistributedprofitsareRMB0.00.
(3)Asthecorrectionofsignificantaccountingerror,theaffectedbeginningundistributedprofitsareRMB0.00.
(4)Asthechangeofconsolidationscopecausedbythesamecontrol,theaffectedbeginningundistributedprofitsareRMB0.00.
(5)OtheradjustmentofthetotalaffectedbeginningundistributedprofitsareRMB0.00.
61.Businessincome,Businesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 853,157,761.73 | 758,822,814.42 | 1,006,315,551.63 | 938,514,710.11 |
| Otherbusiness | 3,155,587.01 | 2,085,489.19 | 2,547,743.87 | 2,072,800.62 |
| Total | 856,313,348.74 | 760,908,303.61 | 1,008,863,295.50 | 940,587,510.73 |
Income-relatedinformation:NoneInformationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:
Attheendofthereportingperiod,theincomeamountcorrespondingtotheperformanceobligationsthathavebeensignedbutnotfulfilledorcompletedis0.00yuan.
62.Taxesandsurcharges
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Consumptiontax | 0.00 | 0.00 |
| Urbanconstructiontax | 293,203.50 | 290,794.73 |
| Educationsurcharge | 208,749.85 | 212,086.40 |
| Resourcetax | 0.00 | 0.00 |
| Propertytax | 1,431,139.71 | 2,826,536.51 |
| Landusetax | 50,266.26 | 98,031.18 |
| vehicleandvesselusagetax | 0.00 | 3,960.00 |
| Stamptax | 700,759.15 | 458,231.50 |
| Other | 5,609.59 | 7,856.46 |
| Total | 2,689,728.06 | 3,897,496.78 |
Othernote：None
63.Salesexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 3,554,124.69 | 1,605,556.15 |
| Transportationchanges | 4,551,167.40 | 2,580,690.13 |
| Exhibitionfee | 0.00 | 131,576.37 |
| Businessexpenses | 193,747.29 | 187,361.86 |
| Samplesandproductloss | 305,048.70 | 359,519.68 |
| Propertyinsurance | 0.00 | 2,231,202.83 |
| Sell | 4,217,847.51 | 27,358.27 |
| Travelexpenses | 388,231.96 | 12,700.24 |
| Other | 170,753.73 | 233,838.99 |
| Total | 13,380,921.28 | 7,369,804.52 |
Othernote：None
64.Administrativeexpenses
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 29,847,030.96 | 22,919,081.61 |
| Depreciationoffixedassets | 4,973,342.05 | 6,383,207.78 |
| Waterandelectricity | 893,936.96 | 1,281,518.80 |
| Intermediaryorgan | 1,931,057.09 | 4,393,993.81 |
| Intangibleassetsamortization | 749,763.64 | 689,491.93 |
| Travelexpenses | 232,235.49 | 738,353.90 |
| Officeexpenses | 429,662.27 | 342,201.90 |
| Businessentertainment | 150,393.20 | 196,500.00 |
| Lawsuitexpenses | 30,953.77 | 465,456.54 |
| Repaircharge | 318,416.19 | 1,031,667.72 |
| Propertyinsurance | 91,409.02 | 102,845.11 |
| Lowconsumablesamortization | 22,644.20 | 18,322.00 |
| Boardfees | 46,687.88 | 1,341.50 |
| Rentalfee | 776,298.48 | 674,331.08 |
| Other | 3,853,634.46 | 3,663,566.00 |
| Tax | 44,347,465.66 | 42,901,879.68 |
Othernote：
None
65.R&Dcosts
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 5,751,277.54 | 6,498,554.63 |
| Material | 16,679,205.26 | 10,185,129.50 |
| Depreciation | 1,470,406.20 | 1,371,404.00 |
| Fuel&Power | 553,582.61 | 763,053.12 |
| Travelexpenses | 58,048.90 | 201,113.88 |
| Other | 48,530.44 | 153,133.07 |
| Total | 24,561,050.95 | 19,172,388.20 |
Othernote：
None
66.FinancialExpenses
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Interestexpenses | 221,034.71 | 3,783,883.97 |
| Interestincome | -1,738,185.54 | -15,744,104.66 |
| Exchangeloss | 1,579,207.02 | 9,972,336.73 |
| Feesandother | 1,699,519.77 | 1,257,196.02 |
| Total | 1,761,575.96 | -730,687.94 |
Othernote：None
67.Otherincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| GovemmentSubsidy | 13,045,221.53 | 11,035,139.06 |
68.Investmentincome
InRMB
| Items | Amountofthisperiod | Amountoflastperiod |
| Long-termequityinvestmentreturnsaccountedforbyequitymethod | -2,253,932.85 | -1,614,057.55 |
| Investmentincomefromthedisposaloflong-termequityinvestment | 518,152.41 | 0.00 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 1,418,634.82 | 1,408,000.00 |
| Structureddepositinterest | 14,249,971.25 | |
| Total | 13,932,825.63 | -206,057.55 |
Othernote：None
69.Netexposurehedgingincome
Notapplicable
70.Gainsonthechangesinthefairvalue
Notapplicable
71.Creditimpairmentloss
InRMB
Items
| Items | Amountofthisperiod | Amountoflastperiod |
| Lossofbaddebtsinotherreceivables | 114,166.37 | 310,848.71 |
| Lossofbadaccountsreceivable | -3,921,853.87 | 2,022,916.27 |
| Total | -3,807,687.50 | 2,333,764.98 |
Othernote：None
72.Lossesfromassetimpairment
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| II.LossofinventorypriceandImpairmentofcontractperformancecosts | -35,474,634.93 | -21,259,451.35 |
| Total | -35,474,634.93 | -21,259,451.35 |
Othernote：None
73.Assetdisposalincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| I.Gains&lossesonforeigninvestmentinfixedassets | 12,301,144.92 | |
| II.Gains&lossesonthedisposaloffixedassets | -6,837.44 | -64,458.67 |
| Total | -6,837.44 | 12,236,686.25 |
74.Non-Operationincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Recordedintheamountofthenon-recurringgainsandlosses |
| Other | 20,431.28 | 213,415.65 | 20,431.28 |
| Returninsurancesettlementincome | 4,033,846.00 | ||
| Total | 20,431.28 | 4,247,261.65 | 20,431.28 |
75.Non-currentexpenses
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Theamountofnon-operatinggains&lossed |
| Non-currentassetDispositionloss | 3,275.19 | 3,275.19 | |
| Other | 103,135.58 | 6,092.62 | 103,135.58 |
| Total | 106,410.77 | 6,092.62 | 106,410.77 |
Othernote：None
76.Incometaxexpenses
(1)Incometaxexpenses
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentincometaxexpense | 5,341,193.75 | 9,599,442.08 |
| Deferredincometaxexpense | -82,801.88 | 173,565.75 |
| Total | 5,258,391.87 | 9,773,007.83 |
(2)Reconciliationofaccountprofitandincometaxexpenses：
InRMB
| Items | Amountofcurrentperiod |
| Totalprofits | -3,732,788.98 |
| Incometaxcomputedinaccordancewiththeapplicabletaxrate | -933,197.25 |
| EffectofdifferenttaxrateapplicabletothesubsidiaryCompany | 2,397,975.56 |
| Influenceofincometaxbeforeadjustment | 39,310.93 |
| Influenceofnontaxableincome | -229,658.71 |
| Impactofnon-deductiblecosts,expensesandlosses | 563,317.39 |
| Affecttheuseofdeferredtaxassetsearlyunconfirmeddeductiblelosses | -119,013.34 |
| Thecurrentperioddoesnotaffectthedeferredtaxassetsrecognizeddeductibletemporarydifferencesordeductibleloss | 3,684,886.27 |
| Impactofincometaxreliefpreferences | -145,228.98 |
| Incometaxexpense | 5,258,391.87 |
77.OthercomprehensiveincomeRefertothenotes57
78.Supplementaryinformationtocashflowstatement
(1)Othercashreceivedrelevanttooperatingactivities
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Interestincomeandother（Notincludingfinancingproduct） | 30,410,217.36 | 18,080,774.86 |
| LetterofCreditDeposit | 50,473,165.17 | |
| GovernmentSubsidy | 10,525,545.03 | 11,035,139.06 |
| Total | 91,408,927.56 | 29,115,913.92 |
Notetoothercashreceivedinconnectionwithoperatingactivities:None
(2)Othercashpaidrelatedtooperatingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Paymentofcreditdeposit | 63,184,256.28 | 4,906,692.00 |
| Other | 20,828,454.70 | 27,087,370.19 |
| Total | 84,012,710.98 | 31,994,062.19 |
Notetoothercashpaidinconnectionwithoperatingactivities:None
(3)Cashreceivedrelatedtootherinvestmentactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 1,711,990,437.06 | 620,264,450.94 |
| L/Cmarginforpurchaseofline7equipment | 100,799,633.00 | |
| Total | 1,812,790,070.06 | 620,264,450.94 |
Notetoothercashreceivedrelatedtootherinvestmentactivities：None
(4).Cashpaidrelatedtootherinvestmentactivities
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structuredepositinvestment | 1,654,000,000.00 | 985,495,790.87 |
| Total | 1,654,000,000.00 | 985,495,790.87 |
NotetootherCashpaidrelatedtootherinvestmentactivities：None
（5）OthercashreceivedinrelationtofinancingactivitiesNotapplicable
（6）Cashpaidrelatedwithfinancingactivities
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Restrictedstockofstockrepurchaseincentiveobject | 8,981,300.40 | 11,448,442.40 |
| Total | 8,981,300.40 | 11,448,442.40 |
NotetootherCashpaidrelatedwithfinancingactivities：
None
79.SupplementInformationforcashflowstatement
（1）SupplementInformationforcashflowstatement
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| I.Adjustingnetprofittocashflowfromoperatingactivities | -- | -- |
| Netprofit | -8,991,180.85 | -5,726,853.88 |
| Add:Impairmentlossprovisionofassets | 39,282,322.43 | -14,622,141.27 |
| Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets | 54,769,598.66 | 55,627,659.43 |
| Amortizationofintangibleassets | 749,763.64 | 689,491.93 |
| AmortizationofLong-termdeferredexpenses | 284,354.60 | 350,578.98 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets | 6,837.44 | -12,236,686.25 |
| Lossonscrapoffixedassets | 3,275.19 | |
| Financialcost | 221,034.71 | -730,687.94 |
Lossoninvestment
| Lossoninvestment | 13,932,825.63 | 206,057.55 |
| Decreaseindeferredincometaxassets | 479,558.70 | 348,251.61 |
| Increasedofdeferredincometaxliabilities | -3,892,057.00 | |
| Decreaseofinventories | -73,812,662.03 | -63,857,296.55 |
| Deceaseofoperatingreceivables | -86,494,322.83 | 110,200,333.49 |
| IncreasedofoperatingPayable | -44,293,172.26 | -46,422,344.75 |
| Netcashflowsarisingfromoperatingactivities | -135,619,475.23 | 23,826,362.35 |
| II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows: | -- | -- |
| 3．Movementofcashandcashequivalents： | -- | -- |
| Endingbalanceofcash | 173,706,279.73 | 255,546,268.35 |
| Less:Beginningbalanceofcashequivalents | 268,646,588.18 | 1,133,574,235.22 |
| Netincreaseofcashandcashequivalents | -94,940,308.45 | -878,027,966.87 |
(2)NetCashpaidofobtainingthesubsidiary
Notapplicable
(3)NetCashreceiveofdisposalofthesubsidiaryNotapplicable
(4)Componentofcashandcashequivalents
InRMB
| Items | Year-endbalance | Year-beginningbalance |
| I.Cash | 173,706,279.73 | 268,646,588.18 |
| Including：Cashathand | 8,432.52 | 11,091.94 |
| Demandbankdeposit | 173,461,580.68 | 268,424,080.67 |
| Demandothermonetaryfunds | 236,266.53 | 211,415.57 |
| III.Balanceofcashandcashequivalentsattheperiodend | 173,706,279.73 | 268,646,588.18 |
Othernote：None
80.Noteofstatementofchangesintheowner'sequitySpecifythedescriptionoftheitem"others"andtheadjustedamountofthebalanceattheendoflastyear:
Notapplicable
81.Theassetswiththeownershiporuserightrestricted
InRMB
Items
| Items | Bookvalueattheendofthereportingperiod | Causeofrestriction |
| Monetaryfund | 30,633,741.41 | DepositforL/C |
| Total | 30,633,741.41 | -- |
Othernote：
None
82.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
InRMB
| Items | Closingforeigncurrencybalance | Exchangerate | ClosingconverttoRMBbalance |
| Monetaryfunds | -- | -- | |
| Including：USD | 976,292.51 | 7.07950 | 6,911,662.83 |
| Euro | |||
| HKD | 65.00 | 0.91338 | 59.37 |
| Yen | 18,740,661.00 | 0.06581 | 1,233,285.42 |
| Accountpayable | -- | -- | |
| Including：USD | 11,711,660.55 | 7.07950 | 82,912,700.87 |
| Euro | |||
| HKD | 278,280.00 | 0.91338 | 254,180.95 |
| Long-termborrowing | -- | -- | |
| Including：USD | |||
| Euro | |||
| HKD | |||
| Otherreceivable | |||
| Including：USD | 37,399.02 | 7.07950 | 264,766.36 |
| Yen | |||
| Otherpayable | 2,202,900.00 | 0.06581 | 144,968.45 |
| Including：USD | 676,686.00 | 7.07950 | 4,790,598.54 |
| HKD | 1,986,068.33 | 0.91338 | 1,814,098.81 |
| Yen |
Euro
| Euro | |||
| Accountpayable | |||
| Including：USD | 4,902,180.15 | 7.07950 | 34,704,984.37 |
| Yen | 1,389,977,850.05 | 0.06581 | 91,471,662.36 |
Othernote：None
(2)Notetooverseasoperatingentities,includingimportantoverseasoperatingentities,witchshouldbedisclosedaboutitsprincipalbusinessplace,functioncurrencyforbookkeepingandbasisforthechoice.Incaseofanychangeinfunctioncurrency,thecauseshouldbedisclosed.
□Applicable√Notapplicable
83.HedgingNotapplicable
84.Governmentsubsidies
（1）Governmentsubsidiesconfirmedincurrentperiod
InRMB
| Items | Amount | Project | Amountincludedincurrentprofitandloss |
| Textilespecialfunds | 2,000,000.00 | Deferredincome | 71,428.58 |
| GrantfundsforTFT-LCDpolarizerindustryproject | 13,000,000.00 | Deferredincome | 649,999.98 |
| GrantfundsforTFT-LCDpolarizernarrowline(line5)project | 5,000,000.00 | Deferredincome | 250,000.02 |
| ShenzzhenEngineeringlaboratorypolarizingmaterialandtechnicalengineering | 5,000,000.00 | Deferredincome | 250,000.02 |
| Procurementofimportedequipmentandtechnicalsubsidies | 1,750,902.00 | Deferredincome | 87,545.10 |
| MunicipalResearchandDevelopmentCentre(TRC)grants | 3,000,000.00 | Deferredincome | 150,000.00 |
| ShenzhenpolarizingmaterialsandTechnologyEngineeringLaboratoryinnovationventurecapital | 500,000.00 | Deferredincome | 25,000.02 |
PingshanNewDistrictDevelopmentandFinanceBureauspecialsupportfunds
| PingshanNewDistrictDevelopmentandFinanceBureauspecialsupportfunds | 500,000.00 | Deferredincome | 25,000.02 |
| Shenzhentoencouragetheintroductionofadvancedtechnologyimportfunding | 143,881.00 | Deferredincome | 7,194.06 |
| LocalsupportingfundsforTFT-LCDpolarizerPhaseIIProject(line6) | 15,000,000.00 | Deferredincome | 750,000.00 |
| Productionplantandequipment(line6) | 40,000,000.00 | Deferredincome | 1,999,999.98 |
| InnovationandventurecapitalforTFT-LCDpolarizerPhaseIIProject(line6) | 500,000.00 | Deferredincome | 25,000.02 |
| keytechnologyresearchanddevelopmentprojectsofopticalcompensationfilmforpolarizer | 5,000,000.00 | Deferredincome | 250,000.02 |
| StrategicindustriesDevelopmentfundofGuangdongProvince | 5,000,000.00 | Deferredincome | 1,250,000.04 |
| Governmentsubsidiesrelatedtoincome | 356,671.43 | Deferredincome | 356,671.43 |
| IndustrializationProjectofPolarizerforUltraLargeSizeTV(Line7) | 30,000,000.00 | Deferredincome | 0.00 |
| ShenzhenStandardSpecialsubsidy | 966,000.00 | Deferredincome | 966,000.00 |
| Research&developmentsubsidyforkeytechnologiesofultra-thinIPSpolarizerforsmartphoneterminals | 2,000,000.00 | Deferredincome | 0.00 |
| FinancecommitteeofShenzhenmunicipality(R&Dofkeytechnologyofhigh-performancepolarizerforlargesizedisplaypanelof2018N007) | 6,000,000.00 | Deferredincome | 0.00 |
AtmosphereEnvironmentalQualityImprovementSpecialFundSubsidyAgreement
| AtmosphereEnvironmentalQualityImprovementSpecialFundSubsidyAgreement | 1,033,507.00 | Deferredincome | 221,465.76 |
| 2020Subsidiesfortechnicalreconstructionprojects | 190,000.00 | Deferredincome | 1,583.33 |
| Oldelevatorrenovationfundsubsidies | 325,380.00 | Deferredincome | 55,877.86 |
| Electricitysubsidies | 255,550.00 | Otherincome | 255,550.00 |
| Epidemicpreventionsubsidies | 2,744,803.29 | Otherincome | 2,744,803.29 |
| PingshanFinanceBureau2018CorporateHarmoniousRelationshipAwardFund | 1,000,000.00 | Otherincome | 1,000,000.00 |
| ShenzhenScienceandTechnologyInnovationCommission2018EnterpriseR&DFunding | 1,278,000.00 | Otherincome | 1,278,000.00 |
| ShenzhenWaterAffairsBureau's2019WaterSavingCarrierAwardFund | 374,102.00 | Otherincome | 374,102.00 |
| Total | 13,045,221.53 |
（2）Governmentsubsidyreturn
□Applicable√Notapplicable
85.OtherNoneVIII.Changesofmergescope
1.Businessmergernotundersamecontrol
(1)Businessmergernotundersamecontrolinreportingperiod
Notapplicable
(2)CombinedcostandgoodwillNotapplicable
(3)Theidentifiableassetsandliabilitiesofacquireeatpurchasedate
Notapplicable
(4)Theprofitorlossfromequityheldbythedatebeforeacquisitioninaccordancewiththefairvaluemeasuredagain、Whetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizeenterprisesmergerandgainingthecontrolduringthereportingperiod
□Yes√No
(5)NotetomergercouldnotbedeterminedreasonableconsiderationorIdentifiableassets,FairvalueofliabilitiesoftheacquireeatacquisitiondateorclosingperiodofthemergeNotapplicable
(6)Othernote
Notapplicable
2.Businesscombinationunderthesamecontrol
(1)Businesscombinationunderthesamecontrolduringthereportingperiod
Notapplicable
(2)CombinationcostNotapplicable
(3)ThebookvalueoftheassetsandliabilitiesofthemergedpartyonthedateofconsolidationNotapplicable
3.Counterpurchase
Notapplicable
4.ThedisposalofsubsidiaryWhetherthereisasingledisposaloftheinvestmenttosubsidiaryandlostcontrol
□Yes√No
Whethertherearemultipletransactionsstepbystepdisposetheinvestmenttosubsidiaryandlostcontrolinreportingperiod
□Yes√No
5.OtherreasonsforthechangesincombinationscopeNotetothechangeintheconsolidationscope(e.g.newsubsidiaries,liquidationsubsidiaries,etc.)causedbyotherreasonsandrelevantinformation:
Notapplicable
6.OtherNotapplicableIX.Equityinotherentities
1.Equityinsubsidiary
(1)Thestructureoftheenterprisegroup
Subsidiary
| Subsidiary | Mainoperation | Registeredplace | Businessnature | Share-holdingratio | Acquiredway |
| Directly | Indirectly | |||||
| ShenzhenLishiIndustryDevelopmentCo.,Ltd | Shenzhen | Shenzhen | Domestictrade,PropertyManagement | 100.00% | Establish | |
| ShenzhenHuaqiangHotel | Shenzhen | Shenzhen | Accommodation,restaurants,businesscenter; | 100.00% | Establish | |
| ShenfangPropertyManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100.00% | Establish | |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Shenzhen | Shenzhen | Productionoffullyelectronicjacquardknittingwholeshape | 100.00% | Establish | |
| ShenzhenShengboOphotoelectricTechnologyCo.,Ltd | Shenzhen | Shenzhen | Polarizerproductionandsales | 60.00% | Purchase | |
| ShenzhenShenfangImport& | Shenzhen | Shenzhen | Operatingimportand | 100.00% | Establish |
exportCo.,Ltd.
| exportCo.,Ltd. | exportbusiness | |||||
| Shengtou(Hongkong)Co.,Ltd. | Hongkong | Hongkong | Productionandsalesofpolarizer | 100.00% | Establish |
Explanationthattheshareholdingratioinsubsidiariesisdifferentfromthevotingrightratio:NoneBasisforholdinghalforlessvotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfvotingrightsbutnotcontrollingtheinvestee:NoneFortheimportantstructuredsubjectsincludedinthescopeofconsolidation,thecontrolbasisis:NoneBasisfordeterminingwhetherthecompanyisanagentoraprincipal:NoneOthernote：Note
（2）Significantnotwholly-ownedsubsidiaries
InRMB
| Name | Holdingproportionofnon-controllinginterest | Profitorlossattributabletonon-controllinginterest | Dividenddeclaredtonon-controllinginterest | Closingbalanceofnon-controllinginterest |
| ShenzhenShengboOphotoelectricTechnologyCo.,Ltd | 40.00% | -9,710,915.59 | 1,117,140,510.23 |
Othernote：None
（3）Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries
InRMB
| Subsidiaries | Closingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentLiabilities | Totalliabilities | |
| ShenzhenShengboOphotoelectricTechnologyCo., | 1,361,796,542.29 | 1,839,533,428.67 | 3,201,329,970.96 | 308,448,333.70 | 115,021,642.86 | 423,469,976.56 | 1,455,718,295.17 | 1,778,011,925.06 | 3,233,730,220.23 | 312,419,750.90 | 119,774,431.23 | 432,194,182.13 |
Ltd
InRMB
LtdSubsidiarie
s
| Subsidiaries | Currentterm | Lastterm | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | |
| ShenzhenShengboOphotoelectricTechnologyCo.,Ltd | 802,362,703.39 | -28,210,564.14 | -28,210,564.14 | -114,179,379.34 | 893,168,312.79 | -35,069,023.71 | -35,069,023.71 | 73,481,662.86 |
Othernote：None
(4)SignificantrestrictionsofusingenterprisegroupassetsandpayoffenterprisegroupdebtNotapplicable
(5)ProvidefinancialsupportorothersupportforstructureentitiesincorporateintothescopeofconsolidatedfinancialstatementsNotapplicable
2.ThetransactionoftheCompanywithitsowner’sequitysharechangedbutstillcontrollingthesubsidiary
(1)Notetoowner’sequitysharechangedinsubsidiary
Notapplicable
(2)Thetransaction’sinfluencetoequityofminorityshareholdersandattributabletotheowner'sequityoftheparentcompany
Notapplicable
3.Equityinjointventurearrangementorassociatedenterprise
(1)Significantjointventurearrangementorassociatedenterprise
| NameofSubsidiary | MainPlacesofOperation | RegistrationPlace | NatureofBusiness | ShareholdingRatio(%) | Theaccountingtreatmentofinvestmentinassociates | |
| direct | indirect | |||||
| ShenzhenGuanhua | Shenzhen | Shenzhen | Propertyleasing | 50.16% | Equitymethod | |
Printing&DyeingCo.,Ltd
Explanationthattheshareholdingratiointhejointventureorassociatedenterpriseisdifferentfromthevotingrightratio:NoneBasisforholdinglessthan20%ofvotingrightsbutwithsignificantinfluence,orholding20%ormoreofvotingrightsbutwithoutsignificantinfluence:None
（2）TheSummarizedFinancialInformationofJointVentures
InRMB
Printing&DyeingCo.,LtdYear-endbalance/Amountofcurrent
period
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod | |
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd | |
| Currentassets | 17,443,819.49 | 10,286,534.45 |
| Non-currentassets | 255,457,678.25 | 254,848,270.68 |
| Totalassets | 272,901,497.74 | 265,134,805.13 |
| Currentliabilities | 19,983,109.96 | 10,815,587.15 |
| Non-currentliabilities | 40,063,433.44 | 39,522,035.69 |
| Totalliabilities | 60,046,543.40 | 50,337,622.84 |
| Attributabletoshareholdersoftheparentcompany | 212,854,954.34 | 214,797,182.29 |
| Shareofnetassetscalculatedbystake | 106,768,045.10 | 107,742,266.64 |
| --Goodwill | 21,595,462.44 | 21,595,462.44 |
| --Other | 285,343.61 | 285,343.61 |
| Bookvalueofequityinvestmentinjointventures | 128,648,851.15 | 129,623,072.69 |
| Operatingincome | 5,729,179.52 | 0.00 |
| Financialexpenses | -20,457.73 | 0.00 |
| Incometaxexpenses | 1,130,362.67 | 0.00 |
| Netprofit | -1,942,227.95 | -1,037,556.84 |
| Totalcomprehensiveincome | -1,942,227.95 | -1,037,556.84 |
(3)MainfinancialinformationofsignificantassociatedenterpriseNotapplicable
(4)Summaryfinancialinformationofinsignificantjointventureorassociatedenterprise
InRMB
Year-endbalance/Amountofcurrent
period
| Year-endbalance/Amountofcurrentperiod | Year-beginningbalance/Amountofpreviousperiod | |
| Jointventure： | -- | -- |
| Totalamountoftheproratacalculationofthefollowingitems | 10,047,386.36 | 10,098,833.77 |
| Totalamountoftheproratacalculationofthefollowingitems | -- | -- |
| --Netprofit | -51,447.41 | -912,673.03 |
| --Totalcomprehensiveincome | -51,447.41 | -912,673.03 |
| Associatedenterprise： | -- | -- |
| Totalbookvalueoftheinvestment | 11,648,075.93 | 12,488,023.26 |
| Totalamountoftheproratacalculationofthefollowingitems | -- | -- |
| --Netprofit | -1,228,263.90 | -1,243,075.64 |
| --OtherComprehensiveincome | 388,316.57 | 807,241.54 |
| --Totalcomprehensiveincome | -839,947.33 | -435,834.10 |
(5)NotetothesignificantrestrictionsoftheabilityofjointventureorassociatedenterprisetransferfundstotheCompanyNotapplicable
(6)TheexcesslossofjointventureorassociatedenterpriseNotapplicable
(7)TheunrecognizedcommitmentrelatedtojointventureinvestmentNotapplicable
(8)Contingentliabilitiesrelatedtojointventureorassociatedenterpriseinvestment
Notapplicable
4.SignificantcommonoperationNotapplicable
5.EquityofstructureentitynotincludinginthescopeofconsolidatedfinancialstatementsNone
6.OtherNone
X.RisksRelatedtoFinancialInstrumentsThecompanyhasthemainfinancialinstruments,suchasbankdeposits,receivablesandpayables,investments,loansandsoon.PleaserefertotherelevantdisclosureinNotesforthedetails.Therisksassociatedwiththesefinancialinstrumentsmainlyincludecreditrisk,marketriskandliquidityrisk.Thecompany’smanagementshallmanageandmonitortheserisksandensureaboveriskstobecontrolledwithincertainscope.（I）CreditRiskThecreditriskofthecompanyisprimarilyattributabletobankdepositsandreceivables.Ofwhich,thebankdepositsaremainlydepositedinthemediumandlargecommercialbankswithstrength,highcredibility.Forthereceivables,thecompanyhasdevelopedtherelevantpoliciestocontrolthecreditrisk,andsetupthecorrespondingdebtandcreditlimitafterthecreditstatusofdebtorisevaluatedbasedonfinancialconditionofdebtor,credithistory,externalratings,possibilityofguaranteeobtainedfromthethirdparty.Meanwhile,thecompanyshallregularlymonitorthedebtor’scredithistory.Withregardtothebadcreditrecordforthedebtor,thecompanyshalladoptthewrittenreminder,shorteningorcancelofcreditperiodtoensuretheoverallcreditriskswithinthecontrollablescope.（II）MarketriskMarketriskoffinancialinstrumentarisesfromchangesinfairvalueorfuturecashflowoffinancialinstrumentsaffectedbymarketprice.Marketrisksincludesforeignexchangeriskandinterestrisk.
(1)InterestRateRiskTheinterestrateriskfacedbythecompanyismainlyfromthebankborrowings.Thecompanyisfacedtheinterestrateriskofthecashflowduetothefinancialliabilityofthefloatinginterestrate,andfacedtheinterestrateriskofthefairvalueduetothefinancialliabilityofthefixedinterestrate.Thecompanyshalldeterminetherelativeproportioninthefixedandfloatinginterestratecontracts.
(2)ForeignExchangeRiskTheforeignexchangerisksfacedbythecompanyaremainlyfromthefinancialassetsandliabilitiesbasedonthepriceofUSdollarandJPY.Thecompanymatchestheincomeandexpenditureofforeigncurrencyasfaraspossibleinordertoreducetheforeignexchangerisk.（III）LiquidityriskLiquidityriskreferstofundshortageproblemswhenfulfillingobligationssettledincashorotherfinancialassets.Thecompanyshallguaranteetohavethesufficientfundstorepaythedebtsthroughmonitoringthecashbalance,
themarketablesecuritiesavailabletobecashandtherollingforecastforthefuturecashflow.XI.Thedisclosureofthefairvalue
1.Closingfairvalueofassetsandliabilitiescalculatedbyfairvalue
InRMB
Items
| Items | Closingfairvalue | |||
| Firvaluemeasurementitemsatlevel1 | Firvaluemeasurementitemsatlevel2 | Firvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)TransactionalFinancialAsset | 779,000,000.00 | 779,000,000.00 | ||
| 1.Financialassetsmeasuredatfairvaluethroughprofitorloss | 779,000,000.00 | 779,000,000.00 | ||
| （2）1.Financialassetsmeasuredatfairvaluethroughprofitorloss | 779,000,000.00 | 779,000,000.00 | ||
| （3）Other1.Financialassetsmeasuredatfairvaluethroughprofitorloss | 8,940,598.31 | 242,090,790.80 | 251,031,389.11 | |
| IIInconsistentfairvaluemeasurement | -- | -- | -- | -- |
2.Marketpricerecognitionbasisforconsistentandinconsistentfairvaluemeasurementitemsatlevel1
ThefairvalueoftheFuaoStokeheldbytheCompanyattheendoftheperiodismeasuredbasedontheclosingpriceofShenzhenStockExchangeonJune30,2020.
3.Itemsmeasuredbasedonthecontinuousoruncontinuouslevel2ndfairvalue,valuationtechniqueasused,natureofimportantparametersandquantitativeinformation
Notapplicable
4.Itemsmeasuredbasedonthecontinuousoruncontinuouslevel3rdfairvalue,valuationtechniqueasused,natureofimportantparametersandquantitativeinformation
1.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedintheprofitsandlossesofthecurrentperiodarebankstructureddepositsheldbytheCompany,whicharemeasuredatfairvaluebasedontheprincipalamountduetotheirshortmaturity;
2.Accountsreceivablefinancingisabankacceptancebillwithashortfacevalueandafacevalueclosetothefairvalue,whichismeasuredatthefacevalueasthefairvalue;
3.InvestmentinotherequityinstrumentsisheldbytheCompanyInvestmentinnon-tradableequityinstrumentsismainlyvaluedandmeasuredbymarketmethod,asset-basedmethodandincomemethod.Amongthem:ShenzhenJiafengTextileIndustryCo.,Ltd.andJintianIndustry(Group)Co.,Ltd.facedwithaoperatingenvironmentandoperatingconditionsandfinancialstatus,sotheCompanyuseszeroyuanasareasonableestimateoffairvalueformeasurement;ChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)hasnosignificantchangesinitsoperatingenvironment,operatingconditionsandfinancialstatus,sotheCompanymeasurestheinvestmentcostasareasonableestimateoffairvalue.
5.Continuousthird-levelfairvaluemeasurementitems,adjustmentinformationbetweeninitialandfinalbookvaluesandsensitivityanalysisofun-observableparametersNotapplicable
6.Continuousfairvaluemeasurementitems,theconversionbetweendifferentlevelsinthecurrentperiod,thereasonsfortheconversionandthepolicyfordeterminingtheconversiontime
Notapplicable
7.Changeofvaluationtechniqueincurredinthecurrentperiodandcauseofsuchchange
Notapplicable
8.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
Notapplicable
9.OtherNone
XII.Relatedpartiesandrelated-partytransactions
1.Parentcompanyinformationoftheenterprise
Name
| Name | Registeredaddress | Nature | Registeredcapital | TheparentcompanyoftheCompany'sshareholdingratio | TheparentcompanyoftheCompany’svoteratio |
| ShenzhenInvestmentHoldingsCo.,Ltd. | 18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen | Equityinvestment,Real-estateDevelopmentandGuarantee | RMB27,649million | 45.96% | 45.96% |
Notetotheparentcompany:
Thecompanyisauthorizedandapprovedtobestate-ownedindependentcompanybyShenzhenGovernment,anditExecutesfinancialcontributorfunctiononstate-ownedenterprisewithinauthorizationscope.Therefore,theCompany’sultimatecontrollerisShenzhenInvestmentHoldingsCo.,Ltd.Othernote：
None
2.SubsidiariesoftheCompany
DetailsrefertotheNoteIX-1,Interestinthesubsidiary
3.InformationonthejointventuresandassociatedenterprisesoftheCompany
DetailsrefertotheNoteIX-3,InterestsinjointventuresorassociatesInformationonotherjointventureandassociatedenterpriseofoccurringrelatedpartytransactionswiththeCompanyinreportingperiod,orformbalanceduetorelatedpartytransactionsinpreviousperiod:
| Name | RelationofotherRelatedpartieswiththecompany |
| ShenzhenDailishiUnderwearCo.,Ltd. | SharingCompany |
4.OtherRelatedpartiesinformation
| Otherrelatedparty | RelationshiptotheCompany |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | ChairmanoftheBoardIstheViceChairmanoftheCompany |
| Shengbo（HK）Co.,Ltd. | TheCompanyExecutivesareDirectorofthecompany |
| HangzhouJinjiangGroupCo.,Ltd. | ThecontrollingpartyofSAPOShareholder |
| KunshanZhiqimeiMaterialTechnologyCo.,Ltd. | SharingCompanyofHangzhouJinjiangGroupCo.,Ltd. |
| ShenzhenXinfangKnittingCo.,Ltd. | SharingCompany |
ShenzhenDailishiUnderwearCo.,Ltd.
| ShenzhenDailishiUnderwearCo.,Ltd. | SharingCompany |
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | SharingCompany |
5.Relatedtransactions.
（1）RelatedtransactionsonpurchasinggoodsandreceivingservicesAcquisitionofgoodsandreceptionoflaborservice
InRMB
| Relatedparty | Content | Currentamount | Approvaltradinglimit | Whetheroverthetradinglimit(Y/N) | Lastamount |
| KunshanZhiqimeiMaterialTechnologyCo.,Ltd. | Purchasingpolarizer | 101,405,636.84 | 267,440,000.00 | No | 58,479,328.60 |
Relatedtransactionsonsalegoodsandreceivingservices
InRMB
| Relatedparties | Contentofrelatedtransaction | Amountofcurrentperiod | Amountofpreviousperiod |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | Salespolarizersheet | 800,866.29 | 740,904.84 |
| KunshanZhiqimeiMaterialTechnologyCo.,Ltd. | Salespolarizersheet | 78,432,195.79 | 79,108,319.24 |
(2)Relatedtrusteeship/contract
Notapplicable
(3)InformationofrelatedleaseNotapplicable
(4)Related-partyguaranteeNotapplicable
(5)Inter-banklendingofcapitalofrelatedparties：
InRMB
| Relatedparty | Amount | Startdate | Expiringdate | Note |
| Borrowingfund： | ||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 3,806,454.17 | July30,2019 | July30,2020 | Theannuallendingrateis0.30% |
(6)Relatedpartyassettransferanddebtrestructuring
Notapplicable
(7)Rewardsforthekeymanagementpersonnel
InRMB
Items
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Rewardsforthekeymanagementpersonnel | 3,067,183.00 | 3,136,527.00 |
(8)Otherrelatedtransactions
None
6.Receivablesandpayablesofrelatedparties
（1）Receivables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning | ||
| BalanceofBook | BalanceofBook | BalanceofBook | BaddebtProvision | ||
| Accountreceivable | ShenzhenTianmaMicroelectronicsCo.,Ltd. | 493,132.55 | 24,656.63 | 733,038.52 | 36,651.93 |
| Accountreceivable | KunshanZhiqimeiMaterialTechnologyCo.,Ltd. | 56,323,722.65 | 2,816,186.13 | 53,893,840.80 | 2,694,692.04 |
| OtherAccountreceivable | AnhuiHuapengTextileCompany | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 |
| OtherAccountreceivable | ShenzhenDailishiUnderwearCo.,Ltd. | 0.00 | 0.00 | 404,780.23 | 20,239.01 |
（2）Payables
InRMB
| Name | Relatedparty | Amountatyearend | Amountatyearbeginning |
Accountpayable
| Accountpayable | KunshanZhiqimeiMaterialTechnologyCo.,Ltd. | 60,914,052.12 | 56,245,028.58 |
| Otherpayable | ShenzhenDailishiUnderwearCo.,Ltd. | 605,758.62 | 0.00 |
| Otherpayable | ShenzhenXinfangKnittingCo.,Ltd. | 244,789.85 | 244,789.85 |
| Otherpayable | ShenzhenChanglianfaPrinting&dyeingCo.,Ltd. | 1,580,949.95 | 1,580,949.95 |
| Otherpayable | YehuiInternationalCo.,Ltd. | 1,224,163.03 | 1,216,719.38 |
| Otherpayable | SAPO（Hongkong）Co.,Ltd. | 315,000.00 | 315,000.00 |
| Otherpayable | ShenzhenGuanhuaPrinting&dyeingCo.,Ltd. | 3,811,053.20 | 3,811,053.20 |
7.Relatedpartycommitment
Notapplicable
8.OtherNoneXIII.Sharepayment
1.Overallsituationofsharepayment
√Applicable□Notapplicable
InRMB
| Totalamountofvariousequityinstrumentsgrantedbythecompanyduringthecurrentperiod | 0.00 |
| Totalamountofvariousequityinstrumentsthatthecompanyexercisesduringtheperiod | 0.00 |
| Totalamountofvariousequityinstrumentsthathaveexpiredinthecurrentperiod | 1,503,240.00 |
| Thescopeofexecutivepriceofthecompany’soutstandingshareoptionsattheendoftheperiodandtheremainingtermofthecontract | 0 |
| Thescopeofexecutivepriceofthecompany’sotherequityinstrumentsattheendoftheperiodandtheremainingtermofthecontract | 5.73yuan/shares，0.5year |
Othernote
OnDecember14,2017,thecompany's3rdExtraordinaryGeneralMeetingofShareholdersin2017passedtheProposalon‘ShenzhenTextile(Group)Co.,Ltd.2017RestrictedStockIncentivePlan(Draft)andAbstract’;
onDecember14,2017,theboardofdirectorsofthecompanyreviewedandpassedtheProposalonAdjustingtheListofIncentiveObjectsofRestrictedStockIncentivePlansandtheNumberofEquityGrantedof2017,andtheProposalonGrantingRestrictiveSharestoIncentiveObjects.OnDecember14,2017,thecompanygranted4,752,300restrictedsharestotheincentiveobject,thegrantpricewas5.73yuan/share.Restrictionsshallbeliftedattherateof40%,30%,and30%respectivelyafter12months,24months,and36monthsafterthefirsttransactiondateof24monthsafterthecompletionoftheregistration.Thecompany'sperformanceassessmentfortherestrictedsharesgrantedeachperiodisasfollows:
Restrictionliftingperiod
| Restrictionliftingperiod | Performanceassessmentgoals |
| Thefirstrestrictionliftingperiod | In2018,theearningspershareshallbenolessthan0.07yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2018comparedwith2016isnotlessthan70%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2018,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnolessthan70%. |
| Thesecondrestrictionliftingperiod | In2019,earningspershareshallbenolessthan0.08yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2019comparedwith2016isnotlessthan130%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2019,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnotlessthan75%. |
| Thethirdrestrictionliftingperiod | In2020,theearningspershareshallbenolessthan0.20yuan,andshallnotbelowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2020isnotlessthan200%comparedto2016,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry.In2020,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenuewillbenolessthan80%. |
Note:Earningspershare=netprofit/totalcapitalstockattributabletocommonshareholdersoftheCompanyupondeductionofnon-recurringprofitandloss.OnJanuary16,2020,theCompanyconvenedthefirstextraordinaryshareholders'meetingin2020toconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedSharesandagreedtorepurchaseandcancel69,900sharesofrestrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonal
reasonsatarepurchasepriceof5.73yuanpershare.
OnMarch12,2020,accordingtotheresolutionsofthe27thmeetingofthe7thBoardofDirectorsandthe19thmeetingofthe7thBoardofSupervisors,thecompanyrepurchasedandcancelled1,313,340restrictedstocksthatfailedtomeettheconditionsforliftingtherestrictedsalesinthesecondphase,andrepurchasedandcancelled120,000restrictedstocksthathadbeengrantedtothe3resignedincentiveobjectivesbuthadnotyetbeenreleasedfromsalesrestriction,andrepurchasedandcancelled1,433,340restrictedstocksintotal.OnJune8,2020,accordingtotheresolutionofthe30thmeetingofthe7thBoardofDirectorsoftheCompany,theCompanyrepurchasedandcancelled57,150restrictedstockswhichhadbeengrantedbutnotreleasedfromsalesrestriction,and5,760restrictedstocksheldbyoneoriginalincentiveobjectwhoresignedduetoretirement,totaling62,910restrictedstocks.Theindustrialandcommercialchangeregistrationandotherrelatedproceduresforthiscapitalreductionhavenotyetcompleted,andtheendingsharecapitalstillincludes62,910sharesrepurchasedasmentionedabove.
2.Equity-settledshare-basedpayment
√Applicable□Notapplicable
InRMB
Determinationmethodofthefairvalueofequityinstrumentsonthegrantdate
| Determinationmethodofthefairvalueofequityinstrumentsonthegrantdate | Theclosingpriceofthecompany'sstockongrantdate-grantprice |
| Determinationbasisofthenumberofvestingequityinstruments | Oneachbalancesheetdateofthewaitingperiod,itisdeterminedbasedonthelatestinformationsuchasthechangeinthenumberofpeoplethatcanbereleasedfromrestrictionsandthecompletionofperformanceindicators |
| Equity-settledshare-basedpaymentisincludedintheaccumulatedamountofcapitalreserve | 0.00 |
| Totalamountoffeesconfirmedbyequity-settledshare-basedpaymentsinthecurrentperiod | 0.00 |
Othernote
Theearningspershareafterdeductionofnon-recurringprofitandlosswasRMB-0.12/sharein2019,whichwaslowertheperformanceassessmenttargetinthesecondperiodofliftingrestrictionsonsales;besides,theCompany's2020budgetrollingoperationplanshowthattheCompanyisnotexpectedtocompletetheperformanceassessmenttargetsinthesecondperiodofliftingrestrictionsonsalesandthirdperiodofliftingrestrictions,Inthecurrentperiod,Company'sUnconfirmedSharePaymentFeeintheformerrecognizedsharepaymentdisbursementininterestsfromoccupationoffundsbytheinterestrateof2.10%fortwo-yeardepositssetbythePeople'sBankofChinaforrestrictedstockinvestmentsum.
3.TheStockpaymentsettledbycash
□Applicable√Notapplicable
4.ModificationandterminationofthestockpaymentNotapplicable
5.Other
None
XIV.Commitments
1.SignificantcommitmentsSignificantcommitmentsatbalancesheetdateAsofJune30,2020,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
2.Contingency
(1)SignificantcontingencyatbalancesheetdateAsofJune30,2020,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
(2)TheCompanyhavenosignificantcontingencytodisclose,alsoshouldbestated
None
3.OtherNoneXV.Eventsafterbalancesheetdate
1.SignificanteventshadnotadjustedNotapplicable
2.ProfitdistributionNotapplicable
3.SalesreturnNotapplicable
4.NotesofothersignificanteventsNoneXVI.Othersignificantevents
1.Correctionoftheaccountingerrorsinthepreviousperiod
(1)Retroactiverestatement
Notapplicable
(2)ProspectiveapplicationNotapplicable
2.LiabilitiesrestructuringNone
3.Replacementofassets
(1)Non-monetaryassetsexchange
None
(2)Otherassetsexchange
None
4.Pensionplan
None
5.Discontinuingoperation
Notapplicable
6.Segmentinformation
(1)BasisfordeterminingthereportingsegmentsandaccountingpolicyTheCompanydeterminesitsoperatingdivisionsbasedonitsinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.Basedontheoperatingdivisions,theCompanyconfirmsfour
reportingdivisions,namelytextiles,polarizer,tradeandpropertyleasing.
Divisionalreportinginformationisdisclosedinaccordancewiththeaccountingpoliciesandmeasurementstandardsadoptedbyeachdivisionwhenreportingtothemanagement.Thesemeasurementbasisareconsistentwiththeaccountingandmeasurementbasisforfinancialstatementpreparation.
（2）Financialinformationofthereportdivision
InRMB
Items
| Items | Polarizer | Textile | Propertyleasingandothers | Inter-segmentelimination | Total |
| Mainbusinessincome | 799,129,105.40 | 15,998,728.16 | 41,293,975.08 | -108,459.90 | 856,313,348.74 |
| Mainbusinesscost | 735,064,148.97 | 13,356,181.08 | 12,534,088.66 | -46,115.10 | 760,908,303.61 |
| Totalassets | 3,228,161,781.96 | 30,039,329.67 | 1,229,765,402.03 | -11,667,639.41 | 4,476,298,874.25 |
| Totalliabilities | 441,528,959.63 | 13,116,971.22 | 181,828,755.70 | -7,875,600.00 | 628,599,086.55 |
Note:ThefinancialinformationofthereportingsegmentshouldbedisclosedinlightoftheCompany'sspecificconditions,includinginformationsuchasmainbusinessincomeandmainbusinesscosts.
(3)Incasethereisnoreportingsegmentorthetotalassetsandliabilitiesofthereportingsegmentscannotbedisclosed,explainthereason
（4）Othernote
None
7.Othersignificanttransactionsandmattersthatmayaffectinvestors'decisionmaking
Notapplicable
8.OtherNotapplicable
XVII.NotesofmainitemsinthefinancialstatementsoftheParentCompany
1.Accountsreceivable
(1)Accountsreceivableclassifiedbycategory
InRMB
| Category | Amountinyear-end | Amountinyear-beginning |
Bookbalance
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Including： | ||||||||||
| Accrualofbaddebtprovisionbyportfolio | 8,635,151.26 | 100.00% | 431,757.57 | 5.00% | 8,203,393.69 | 550,453.73 | 100.00% | 27,522.69 | 5.00% | 522,931.04 |
| Including： | ||||||||||
| Total | 8,635,151.26 | 100.00% | 431,757.57 | 5.00% | 8,203,393.69 | 550,453.73 | 100.00% | 27,522.69 | 5.00% | 522,931.04 |
Accrualofbaddebtprovisionbysingleitem
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
Accrualofbaddebtprovisionbyportfolio:431,757.57yuan
InRMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportion | |
| Accountsreceivablesubjecttoimpairmentassessmentbycreditriskcharacteristicsofaportfolio | 8,635,151.26 | 431,757.57 | 5.00% |
| Total | 8,635,151.26 | 431,757.57 | -- |
Notesofthebasisofrecognizingthegroup:Thecombinationoftheageingstatusofaccountsreceivableasacreditriskfeature.Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:
□Applicable√Notapplicable
Disclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year（Including1year） | 8,635,151.26 |
| Total | 8,635,151.26 |
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
Category
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovisionbyportfolio: | 27,522.69 | 404,234.88 | 431,757.57 | |||
| Total | 27,522.69 | 404,234.88 | 431,757.57 | |||
Wherethesignificantamountofthereserveforbaddebtrecoveredorreversed:None
(3)Theactualwrite-offaccountsreceivable
Notapplicable
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Closingbalance | Proportion% | BalanceofBaddebtprovision |
| ShenfangBuildingandPeripheralrent | 8,635,151.26 | 100.00% | 431,757.57 |
| Total | 8,635,151.26 | 100.00% |
(5)Accountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
None
(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone
2.Otheraccountsreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Interestreceivable | 8,016,893.16 | 7,329,228.31 |
Otheraccountsreceivable
| Otheraccountsreceivable | 8,862,213.35 | 9,710,277.69 |
| Total | 16,879,106.51 | 17,039,506.00 |
（1）Interestreceivable
1)Categoryofinterestreceivable
InRMB
| Items | Closingbalance | Openingbalance |
| Structuredeposit | 8,016,893.16 | 7,329,228.31 |
| Total | 8,016,893.16 | 7,329,228.31 |
2)Significantoverdueinterest
Notapplicable
3）Bad-debtprovisionNotapplicable
(2)Dividendreceivable
1)CategoryofDividendreceivableNotapplicable
2)Significantdividendsreceivablewithageexceeding1yearNotapplicable
3)ProvisionforbaddebtsNotapplicable
（3）Otheraccountsreceivable
1)Otheraccountsreceivableclassifiedbythenatureofaccounts
InRMB
| Nature | Closingbookbalance | Openingbookbalance |
| Internalcurrentaccount | 8,884,955.75 | 9,366,582.51 |
| Unitaccount | 15,214,243.58 | 15,678,175.33 |
| Other | 94,852.59 | 44,314.75 |
Total
| Total | 24,194,051.92 | 25,089,072.59 |
2）Bad-debtprovision
InRMB
| BadDebtReserves | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatJanuary1,2020 | 1,285,843.95 | 14,092,950.95 | 15,378,794.90 | |
| BalanceasatJanuary1,2020incurrent | —— | —— | —— | —— |
| Turnbackinthecurrentperiod | 46,956.33 | 46,956.33 | ||
| BalanceasatJune30，2020 | 1,238,887.62 | 14,092,950.95 | 15,331,838.57 |
Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount
□Applicable√Notapplicable
Disclosurebyaging
InRMB
| Aging | Closingbalance |
| Within1year(Including1year） | 4,248,573.06 |
| 1-2years | 3,828,819.36 |
| 2-3years | 1,830,359.77 |
| Over3years | 14,286,299.73 |
| 3-4years | 1,810,047.30 |
| Over5years | 12,476,252.43 |
| Total | 24,194,051.92 |
3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision：
InRMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Reversedorcollectedamount | Write-off | Other | |||
| Accrualofbaddebtprovision | 14,092,950.95 | 14,092,950.95 | ||||
bysingleitem
| bysingleitem | |||||
| Accrualofbaddebtprovisionbyportfolio | 1,285,843.95 | 46,956.33 | 1,238,887.62 | ||
| Total | 15,378,794.90 | 46,956.33 | 15,331,838.57 |
Wherethesignificantamountoftheprovisionforbaddebtrecoveredorreversed:None
4)Accountsreceivableactuallywrittenoffinthereportingperiod
Notapplicable
(5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
InRMB
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance |
| First | Unitaccount | 11,389,044.60 | Over5years | 47.07% | 11,389,044.60 |
| Second | Internalcurrentaccount | 7,875,600.00 | Within1year,1-3years | 32.55% | 912,680.00 |
| Third | Unitaccount | 1,800,000.00 | 3-4years | 7.44% | 1,800,000.00 |
| Fourth | Unitaccount | 1,018,295.37 | Within1year,1-3years | 4.21% | 50,467.79 |
| Fifth | Internalcurrentaccount | 1,009,355.75 | Within1year | 4.17% | 181,045.68 |
| Total | -- | 23,092,295.72 | -- | 95.44% | 14,333,238.07 |
(6)Accountsreceivableinvolvedwithgovernmentsubsidies
Notapplicable
(7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNotapplicable
(8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableNotapplicable
3.Long-termequityinvestment
InRMB
Items
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Investmentsinsubsidiaries | 1,966,803,211.46 | 16,582,629.30 | 1,950,220,582.16 | 1,966,803,211.46 | 16,582,629.30 | 1,950,220,582.16 |
| Investmentsinassociatesandjointventures | 150,344,313.44 | 150,344,313.44 | 152,209,929.72 | 152,209,929.72 | ||
| Total | 2,117,147,524.90 | 16,582,629.30 | 2,100,564,895.60 | 2,119,013,141.18 | 16,582,629.30 | 2,102,430,511.88 |
（1）Investmenttothesubsidiary
InRMB
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||
| Addinvestment | Decreasedinvestment | Withdrawnimpairmentprovision | Other | ||||
| ShenzhenShengboOptoelectrioncTechnologyCo.,Ltd. | 1,910,247,781.94 | 1,910,247,781.94 | 14,415,288.09 | ||||
| ShenzhenLisiIndustrialDevelopmentCo.,Ltd. | 8,073,388.25 | 8,073,388.25 | |||||
| ShenzhenBeautyCentrutyGarmentCo.,Ltd. | 14,696,874.34 | 14,696,874.34 | 2,167,341.21 | ||||
| ShenzhenHuaqiangHotal | 15,489,351.08 | 15,489,351.08 | |||||
| ShenfangPropertyManagementCo.,Ltd. | 1,713,186.55 | 1,713,186.55 | |||||
| Total | 1,950,220,582.16 | 1,950,220,582.16 | 16,582,629.30 | ||||
（2）Investmenttojointventuresandassociatedenterprises
InRMB
Name
| Name | Openingbalance | Increase/decreaseinreportingperiod | Closingbalance | Closingbalanceofimpairmentprovision | |||||||
| Addinvestment | Decreasedinvestment | Gain/lossofInvestment | Adjustmentofothercomprehensiveincome | Otherequitychanges | Declarationofcashdividendsorprofit | Withdrawnimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,098,833.77 | -51,447.41 | 10,047,386.36 | ||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 129,623,072.69 | -974,221.54 | 128,648,851.15 | ||||||||
| Subtotal | 139,721,906.46 | -1,025,668.95 | 138,696,237.51 | ||||||||
| II.Associatedenterprises | |||||||||||
| ShenzhenChanglianfaPrintinganddyeingCompany | 2,450,676.14 | 91,484.12 | 2,542,160.26 | ||||||||
| JordanGarnentFactory | 902,269.19 | -924,097.64 | 6,568.84 | -15,259.61 | |||||||
YehuiInternationalCo.,Ltd.
| YehuiInternationalCo.,Ltd. | 9,135,077.93 | -395,650.38 | 381,747.73 | 9,121,175.28 | ||
| Subtotal | 12,488,023.26 | -1,228,263.90 | 388,316.57 | 11,648,075.93 | ||
| Total | 152,209,929.72 | -2,253,932.85 | 388,316.57 | 150,344,313.44 |
（3）Othernote
Notapplicable
4.BusinessincomeandBusinesscost
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| IncomefromMainBusiness | 25,667,881.46 | 3,003,017.42 | 33,021,263.65 | 4,357,490.45 |
| OtherBusinessincome | 1,302,040.74 | 1,302,040.74 | 1,572,244.63 | 1,572,244.63 |
| Total | 26,969,922.20 | 4,305,058.16 | 34,593,508.28 | 5,929,735.08 |
Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:
Attheendofthereportingperiod,theincomeamountcorrespondingtotheperformanceobligationsthathavebeensignedbutnotfulfilledorcompletedis0.00yuan.
5.Investmentincome
InRMB
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Incomefromlong-termequityinvestmentmeasuredbyadoptingtheequitymethod | -2,253,932.85 | -1,614,057.55 |
| Investmentincomefromthedisposaloflong-termequityinvestment | 518,152.41 | |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 1,418,634.82 | 1,408,000.00 |
| Structureddepositinterest | 11,383,689.05 | |
| Total | 11,066,543.43 | -206,057.55 |
6.Other
None
XVIII.Supplementinformation
1.Particularsaboutcurrentnon-recurringgainsandloss
√Applicable□Notapplicable
InRMB
Items
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss | -6,837.44 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 13,045,221.53 | Mainlyduetorecognizeotherincomefromgovernmentsubsidiesrelatedtothemainbusiness. |
| Othernon-businessincomeandexpendituresotherthantheabove | -85,979.49 | |
| Less:Influencedamountofincometax | 22,685.75 | |
| Influencedamountofminorshareholders’equity(aftertax) | 5,092,038.68 | |
| Total | 7,837,680.17 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-ExtraordinaryGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.Returnonnetassetandearningspershare
| Profitofreportperiod | Weightedaveragereturnsequity(%) | Earningspershare | |
| Basicearningspershare(RMB/share） | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletotheCommonstockshareholdersofCompany. | 0.03% | 0.0014 | 0.0014 |
| NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss. | -0.26% | -0.0140 | -0.0140 |
3.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards
(1)DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards
□Applicable√Notapplicable
(2)DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards
□Applicable√Notapplicable
(3)Explainreasonsforthedifferencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards,forauditdataadjustingdifferenceshadbeenforeignaudited,shouldindicatethenameoftheforeigninstitutionsNotapplicable
4.OtherNone
XII．DocumentsAvailableforInspection
1.Financialstatementsbearingthesealandsignatureoflegalrepresentative,GeneralManaagerandfinancialcontroller;
2..TheoriginalsofalltheCompany’sdocumentsandtheoriginalmanuscriptsofannouncementspubliclydisclosedonthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod.
3.OtherrelevantinformationTheabovedocumentswerecompletelyplacedattheOfficeofSecretariesoftheBoardofDirectorsoftheCompany.
TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd.
August20,2020