Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Textile (Holdings) Co., Ltd.
2015 Annual Report
March 2016
1
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee, All Directors, Supervisors and Senior executives of the
Company hereby guarantees that there are no misstatement, misleading representation or important omissions in
this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the
contents hereof.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mr.Mu Linying, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this annual report.
Other directors attending the Meeting for annual report deliberation except for the followed:
Name of director absent Title for absent director Reasons for absent Attorney
Chao Jin Director Health reasons Zhu Jun
Concerning the forward-looking statements with future planning involvedin the Report, they do not constitute a
substantial commitment for investors, investors should be cautious with investment risks .
The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily,
Shanghai Securities News , Hongkong Commercial Daily and Juchao Website（http://www.cninfo.com.cn）are the
media for information disclosure appointed by the Company, all information under the name of the Company
disclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Financial Report
XI. Documents available for inspection
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National Assets
National Assets Regulatory Commission of Shenzhen Municipal
Regulatory Commission of Shenzhen Refers to
People's Government
Municipal People's Government
The Controlling shareholder/ Shenzhen
Refers to Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
Shengbo Optoelectronic Refers to Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Ntto Kogyo Refers to Ntto Kogyo Corporation
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to 2015 Annual Report
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
II. Basic Information of the Company and Financial index
Ⅰ.Company Information
Shen Textile A ,Shen Textile
Stock abbreviation Shen Textile A ,Shen Textile B Stock code：
B
Modified stock ID(if any) N/A
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE （HOLDINGS） CO.,LTD.
English abbreviation (If any) STHC
Legal Representative Zhu Jun
Registered address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the Registered
518031
Address
Office Address 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Postal code of the office
518031
address
Internet Web Site http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
Ⅱ.Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Mo Xiayun
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com moxy@chinasthc.com
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Ⅲ. Information disclosure and placed
Newspapers selected by the Company for information Securities Times, China Securities, Shanghai Securities Daily ,Securities
disclosure Daily and Hongkong Commercial Daily.
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Secretarial office of the Board
placed
Ⅳ.Changes in Registration
Organization Code 19217374-9
In July 2012, The business scope of the company is changed to "production, textiles
processing, knitwear, clothing, upholstery fabrics, belts, trademark bands, handicrafts
(without restrictions); general merchandise, the special equipment of the textile
Changes in principal business activities industry, textile equipment and accessories, instruments, standard parts, raw textile
since listing (if any) materials, dyes, electronic products, chemical products, mechanical and electrical
equipment, light industrial products, office supplies and domestic trade (excluding the
franchise, the control and the monopoly of goods) ; operation of import and export
business." after approval of Shenzhen Market Supervisory Authority .
In October 2004,In accordance with the Decision on Establishing Shenzhen Investment
Holdings Co., Ltd. issued by State-owned Assets Administration Committee of
Shenzhen Municipal People's Government (Shen Guo Zi Wei (2004) No. 223
Changes is the controlling shareholder in
Document), Shenzhen Investment Management Co., Ltd., the controlling shareholder
the past (is any)
of the Company, and Shenzhen Construction Holding Company and Shenzhen
Commerce and Trade Holding Company merged into Shenzhen Investment Holdings
Co., Ltd.
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs Peking Certified Public Accountants（Special Geneaal Partnership）
Office address： 11/F, Zhongtang Building , No.110, Xihimen Street , Beijing
Names of the Certified Public
Xiao Yi , Lan Tao
Accountants as the signatiries
The sponsor performing persistant supervision duties engaged by the Company in the reporting period.
√ Applicable □ Not applicable
Sponsor name Office address Representatives Period of supervision and guide
25/F, Tax-free Business
Changjiang Financing
Building, No.6, Fuhua No.1 Wang Qian, Su Jinhua 2013.3.26-2015.12.31
ServicesCo., Ltd.
Road, Futian District ,
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen
The Financial advisor performing persistant supervision duties engaged by the Company in the reporting period
□ Applicable √ Not applicable
Ⅵ.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2015 2014 2013
（％）
Operating Gross income（RMB） 1,226,746,791.62 1,210,952,548.57 1.30% 1,131,098,580.37
Net profit attributable to the
shareholders of the listed company 8,497,227.40 -113,591,328.26 107.48% 47,222,590.97
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
-92,259,797.61 -148,855,363.05 38.02% -161,473,020.61
to the shareholders of listed
company（RMB）
Cash flow generated by business
39,584,500.37 -48,701,494.05 181.28% -186,726,206.07
operation, net（RMB）
Basic earning per
0.02 -0.22 109.09% 0.10
share(RMB/Share)
Diluted gains per
0.02 -0.22 109.09% 0.10
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） 0.39% -5.06% 5.45% 2.31%
End of Changed over last year
End of 2015 End of 2013
2014 （％）
Gross assets（RMB） 2,969,394,978.70 2,884,531,917.28 2.94% 2,851,759,735.91
Net assets attributable to
shareholders of the listed company 2,174,569,545.55 2,196,249,248.26 -0.99% 2,297,846,577.11
（RMB）
Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(International Accounting Standards) or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
Ⅷ.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 302,735,429.91 318,257,903.57 322,076,321.92 283,677,136.22
Net profit attributable to the
4,339,711.63 3,328,316.32 -1,485,394.97 2,314,594.42
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
-19,099,161.16 -14,285,064.31 -13,045,798.66 -45,829,773.48
to the shareholders of listed
company
Net Cash flow generated by
42,290,099.22 -37,996,971.22 35,199,887.93 91,484.44
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
Ⅸ.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2015) Amount (2014) Amount (2013) Notes
Non-current asset disposal
gain/loss(including the write-off part for -25,108.97 52,281.62 211,668,888.86
which assets impairment provision is made)
Govemment subsidy recognized in
currentgain and loss(excluding those closely
21,420,940.38 16,688,387.98 15,060,086.51
related to the Company’s business and
granted under the state’s policies)
Gain arising from investment costs
for acquisition of subsidiaries, associates 3,897,638.73
and joint-ventures by the corporation being
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
less than its share of fair value of
identifiable net assets of the investees on
acquisition
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities 88,006,690.51 16,896,190.19 45,135,723.11
and sellable financial assets other than valid
period value instruments related to the
Company’s common businesses.
Switch back of provision for depreciation of
account receivable which was singly taken 790,775.00 1,655,886.25 93,971.83
depreciation test.
Other non-operating income and expenditure
2,465,842.60 437,923.44 4,327,035.16
except for the aforementioned items
Less: Amount of influence of income tax 11,902,114.51 4,364,273.42 67,590,093.89
Total 100,757,025.01 35,264,034.79 208,695,611.58 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
In 2015, the company's main business covered such the high and new technology industry as represented by LCD
polarizer, its own property management business and the retained business of high-end textile and garment
Polarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat panel
display industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers and
TVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on
many fields. The company’s five existing production lines of polarizer with mass production have products
covered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products
mainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones,
wearable devices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing
Optoelectronic, BOE, Ivo, Shenchao Optoelectronic and so forth panel companies.
During the reporting period, on the one hand, the company’s production capacity of polarizer increased 22.7%
compared with the same period last year due to improvement of the existing production line speed and
scientifically arrange the production schedule; on the other hand, in order to ensure the second phase of the project
having good market prospect and the profitability, the company had carried out extensive market research,
technical exchange and customer visits to optimize the original construction scheme and organized experts to
verify the optimized scheme, then decided to continually carry forward the project construction of No.6 line,
expanding the production scale of polarizer.
Upon the dual effects of the product line construction and the enormous downstream market, the core of the global
display industry has speeded up the transfer to the Mainland China, thus Mainland China has become the
investment hotspots for the global panel display industry. The panel display industry is one of the most important
development projects listed in Medium and Long Term Development Outline for Information Industry form 2006
to 2020, and is also an industry encouraged by the country. In the future, the company will rely on more than 20
years of industrial operation experiences and location advantages to continually improve the technology level and
cultivate the independent innovation ability and market development ability.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major chages
Fixed assets No major chages
Intangible assets No major chages
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Construction in process No major chages
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
Ⅲ.Analysis On core Competitiveness
(a) Technology advantages. Shengbo Optoelectronic is the first domestic national high-tech company which
entered into the R&D and production of the polarizer, and it has more than 20 years of operational experience of
the polarizer industry and has already mastered the core technology of TN, STN and TFT product fields, with the
whole-set exclusive technology of the polarizer to meet the customer demands and independent intellectual
property rights for various new products. By the end of the reporting period, the company applied for 63 invention
patents and was authorized with 44 items, among which: 13 domestic invention patents(4 patents got authorized);
46 domestic utility model patents(38 patents got authorized); 1 overseas invention patent; 3 overseas utility model
patents(2 patents got authorized). The company, possessing the two technology platforms “Shenzhen polarizing
materials and engineering laboratory" and "Municipal research and development center", focused on the R&D and
the industrialization of the core production technology of LCD polarizer, the developing and industrialization of
the new products of OLED polarizer and the “domestication” research on the production materials of polarizer.
Through the introduction of various types of sophisticated testing equipments to perfect the test means of
small-scale test and medium-scale test, further by improving the incentive system of research and development
and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so forth means,
the company comprehensively enhanced the level of research and development.
(b) Talents advantages. The company has the management team and the senior technical team with strong
technical ability, enduring cooperative spirit, rich experience and international vision on the polarizer. The
company had engaged overseas technical personnel who have great experiences on advanced polarizer production
and established the technology management team with its own technical team and complemented by engaging
foreign technical personnel, and via the combination of independent innovation and technology providing by
engaged foreign personnel to accumulate technology, which enabled the company to build such advantages as
brand, technology and operating management advantages in the domestic polarizer bushiness, then shaped the
whole-set exclusive technology combined with the characteristics of the company’s equipments and technical
process for all kinds of products.
(c) Market advantages. The company has good customer groups not only in domestic market but in foreign market,
compared with foreign advanced counterparts, the biggest advantage lies in the localization for supporting, close
to the panel market, as well as the strong support of the national policy. As to the market development, centered in
the production material control, extended to both ends to link the procurement and the market, established a rapid
response mechanism, and supplemented by a series of value-added services to fully meet the needs of customers,
with a stable supply chain, for further increasing the market share.
(d) Quality advantages. The company always adhered to the quality policy of "Satisfying customer demands and
pursuing excellent quality" and focused on product quality control, thus the product quality has larger advantages
compared with other similar-kind domestic companies. The company introduced a modern quality management
system, with the products passed the ISO9001 quality management system, ISO14001 environmental management
system, OHSAS18000, QCO80000 system certification and SGS testing, was in line with the ROHS
environmental protection requirements, and with standardized processes of raw materials supplying,
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
production-manufacturing, marketing, sales and customer services for ensuring the stability of the product quality.
The company had increased the automatic detecting and marking equipments in the beginning section and the
ending section, strictly controlled the product quality and improved the product utilization rate and product
management efficiency.
(e) Management advantages. Shengbo Optoelectronic has accumulated rich management experiences in more than
20 years in the manufacturing of polarizer, possessing the home most advanced control technology of the
production management process of the polarizer and quality management technology and the stable raw material
procurement channel so forth management systems. The company had carried out comprehensive benchmarking
work, organized the management personnel to learn advanced experiences from customers and peers to force the
elevation of management ability, and drew on the foreign company’s management experiences of polarizer,
optimized the company's organizational structure, reduced the managerial hierarchy and further enhanced the
company's management efficiency.
(f) The policy advantage. Shenzhen Shengbo Optoelectronic, one of the first batch companies of color filter and
polarizer included in the policy, enjoys the preferential tax policies of the new display industry and enjoys the
exemption from import tariffs, such as self-consumed raw production materials which cannot produced
domestically and the consumables. Meanwhile, the company enhanced the supplier management, perfected the
overall procurement strategy, strictly controlled the quantity of the suppliers while drawing the competition
mechanism in, focused on drawing in the potential materials with price competitiveness, further reduced the
production costs and improved the product competitiveness.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
IV. Management’s Discussion and Analysis
Ⅰ.General
In 2015, due to the continuous fierce competitions in the polarizer market and the constant upgrade of the
mainstream products and increasingly weak economic environment for traditional garment and textile industry
and so forth adverse factors, the situation of the production and operation was very severe. Upon the goal of
“Deepening the cooperation and Self-enhancement and Sparing no effort to reduce losses”, through raising the
speed to release the production capacity, improving the technical process to reduce the losses, deeply exploring
the market to develop the customer groups, promoting the equity transfer to support the industrial transformation,
all kinds of indicators on the company’s operation had been obviously turned around.
In the year of 2015, the company achieved the operating revenue of RMB 1,226.7468 million, an year-on-year
increase of 1.3%; total profits of RMB 43.1517 million, an year-on-year increase of 169.53%; net profits
attributable to the owner of the parent company was RMB 8.4972 million, an year-on-year increase of 107.48%.
The main reasons were the sales of the available for sale financial assets and the transfer of 18% stake of
Shenzhen Tongyi Silk Co. Ltd held by the company’s subsidiary-Shenzhen Sheng Bo Optoelectronic Co.,Ltd,
which led to an big year-on-year increase on investment income; meanwhile, the yield rate and utilization rate of
the polarizer had a certain-extent of improvement and the losses of the polarizer business decreased compared
with the same period of the last year.
Review of the company's key works carried out in 2015 as follows:
(a) Significantly improved the main business operation of the polarizer
In 2015, firstly, the company had been through its own efforts and the way that making cooperation with Li Te
Optoelectronic, raised the speed of the production line, scientifically arranged the production schedule, enhanced
the on-line monitoring and effectively improved the capability of the production line and the product yield rate;
the second was adhering to the active and differentiated marketing strategy, timely making feedbacks to the key
customers, following up and correcting the problematic products, deeply exploring the market potential, which
resulted in new breakthroughs in the supplying to major customers; the third was to enhance the “domestication”
transformation of the major equipments and enhance the overall equipment management and the transformation of
the equipments for energy-saving, thus reduced the consumption and controlled the costs. In the reporting period,
the revenue of the company’s polarizer business increased but the operating costs decreased, thus the losses was
obviously reduced.
At the same time, the company strengthened the management of scientific research, developing new products
according to the customers’ requirements. During the reporting period, a total of 27 R & D projects were set up,
among which, the newly developed 48 Inch A04 model filled the blank area in the field of the domestic large-size
polarizer. During the reporting period, the company had applied for and received the acceptance for 9 patents that
included 2 invention patents and 7 utility model patents, and there were 2 patents got authorized. As of December
31, 2015, the company had applied for 63 patents and there were 44 patents got authorized, among which: there
were 13 domestic invention patents (4 patents got authorized); 46 utility model patents (38 patents got authorized);
1 overseas invention patent; 3 overseas utility model patents (2 patents got authorized).
(b) The steady rise in the operating status of the property company
In 2015, the company’s property companies comprehensively promoted the openly leasing and the enhancement
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
work of raising the efficiency, thus the rental unit price in newly signed contracts increased in a certain extent; the
company completed the final construction works such as outdoor matching project of Guan Hua Building that is
the company’s property and completed the special acceptance and the preliminary test, what’s more, the building
was pre listed in the Shenzhen United Property Exchange for leasing, resulted in good market response.
(c) Initially completed the planning work of the "13th Five-Year"
In 2015, based on reviewing and summarizing the development experiences and existing problems of the "Twelfth
Five Year", the company seriously reckoned the development environment of the "13th Five-Year", with in
accordance with the characteristics of the industry development and closely focusing on the development strategy
of "Consolidating development, reform and making innovations and achieving better economies of scale", then
the company initially completed the programming of The Strategic Development Planning of Shenzhen Textile
Group for the "13th Five-Year" that specified the company’s development direction is firmly shaping a stronger
and bigger polarizer business in the "13th Five-Year".
(d) Optimized and demonstrated the construction scheme of the second phase project for TFT-LCD polarizer
In 2015, the company’s item that original planned by technical cooperation with Nitto Denko to produce Polaroid
products and with intended alteration of the use of the raised funds for the second phase project of TFT-LCD
polarizer was terminated. In order to ensure the good market prospect and the profitability of the second phase
project, he company had carried out extensive market research, technical exchange, customer visits and carefully
considered the latest situation of the industrial development to optimize the construction scheme of the second
phase project for TFT-LCD polarizer and organized experts to demonstrate the optimized scheme, then decided to
continually carry forward the project construction of No.6 line. Currently, the company has set up the construction
team for No.6 line project, clarified the investment plan and the construction progress and completed the openly
bidding for purchasing the main equipment and signed the relevant contract. Meanwhile, in light of there was a
large funds gap between the actual raised funds and the planned raised funds, then by comprehensive
consideration of the company’s production line scale and the operation pressure, the company planned to
terminate the project of No.7 line, and the use of the corresponding funds for No.7 line project shall be changed to
permanently add to the liquidity.
(e) Promoting the transfer of equity and supporting industrial transformation
In 2015, for fully supporting the development of the main business of polarizer and revitalizing the company's
assets, by the unremitting efforts from the whole company, the company successfully completed the work of
equity disposal of 18% stake of Shenzhen Tongyi Silk Co. Ltd held by the company’s subsidiary-Shenzhen
Shengbo Optoelectronic Co.,Ltd.
(f) Improving the appraisal mechanism of the salary system, strengthening the construction of the talent team
In 2015, in order to encourage technological innovation, on the one hand, the company improved the appraisal and
distribution system, in which the salary-incentive shall be inclined to staff for key researches and technical staff to
fully embody the incentive and the fairness of the remuneration payment; on the other hand, the company
established grade evaluation and engagement system for technical staff and carried out the technical appraisal and
appointment work to fully mobilize the enthusiasm of technical personnel for creating conditions to attract and
retain talents.
(g) Enhancing the safety in production and promoting the normalization of safety management
In 2015, the company continually propagated and implemented The New Safety Production Law, established and
issued the Propaganda and Implementation Plan of the New Safety Production Law, further enhanced the training
work on safety production. At the same time, the company continually carried out the “Implementation activity of
the year of the safety production system” and the closed-loop management of hidden dangers rectification, and a
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
total of 236 hidden security risks were investigated and dealt with, with the rectification rate over 98%, the
company achieved the annual safety production goal.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2015 2014
Increase /decrease
Amount Proportion Amount Proportion
Total operating
1,226,746,791.62 100% 1,210,952,548.57 100% 1.30%
revenue
Industry
Domestic and
429,639,819.01 35.02% 418,662,598.31 34.57% 2.62%
foreign trade
Manufacturing 700,600,503.65 57.11% 697,875,210.57 57.63% 0.39%
Lease and
Management of 90,743,656.58 7.40% 88,681,033.81 7.32% 2.33%
Property
Other 5,762,812.38 0.47% 5,733,705.88 0.48% 0.51%
Products
Lease and
Management of 90,743,656.58 7.40% 88,681,033.81 7.32% 2.33%
Property
Textile 25,205,284.70 2.05% 36,871,877.02 3.04% -31.64%
Polarizer sheet 803,719,803.87 65.52% 734,488,663.78 60.65% 9.43%
Trade 301,315,234.09 24.56% 345,177,268.08 28.51% -12.71%
Other 5,762,812.38 0.47% 5,733,705.88 0.48% 0.51%
Area
Domestic 452,609,409.47 36.90% 433,336,598.45 35.78% 4.45%
Overseas 774,137,382.15 63.10% 777,615,950.12 64.22% -0.45%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
√ Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
Industry
Domestic and
429,639,819.01 423,199,182.16 1.50% 2.62% 1.97% 0.63%
foreign trade
Manufacturing 700,600,503.65 690,228,637.37 1.48% 0.39% -2.90% 3.34%
Lease and
Management of 90,743,656.58 23,475,132.76 74.13% 2.33% 1.10% 0.31%
Property
Products
Lease and
Management of 90,743,656.58 23,475,132.76 74.13% 2.33% 1.10% 0.31%
Property
Textile 25,205,284.70 27,117,500.23 -7.59% -31.64% -10.05% -25.82%
Polarizer sheet 803,719,803.87 787,302,128.29 2.04% 9.43% 4.60% 4.51%
Trade 301,315,234.09 299,008,191.01 0.77% -12.71% -12.85% 0.16%
Area
Domestic 446,846,597.09 396,404,251.87 11.29% 4.50% 15.53% -8.47%
Overseas 774,137,382.15 740,498,700.42 4.35% -0.45% -8.12% 7.99%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2015 2014 Changes
(0000’ square
Sales 846.98 691.63 22.46%
meters)
(0000’ square
Polarizer sheet Production 877.05 714.82 22.70%
meters)
(0000’ square
Stock 118.79 88.72 33.89%
meters)
16
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Sales 0000’ pieces 164 157 4.46%
Knitted clothing Production 0000’ pieces 167 169 -1.18%
Stock 0000’ pieces 54 51 3.92%
Explanation for a year-on –year change of over 30%
√Applicable □ Not applicable
During the reporting period, the subsidiary, Shenzhen Shengbo Optoelectronic Technology Co., Ltd., has the
increase in TV, EWV and NOR polarizers sold to panel manufacturers over the same period of last year.
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry and product classification
In RMB
2015 2014
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Domestic and Polarizer sheet,
423,199,182.16 37.04% 415,021,559.43 35.94% 1.97%
foreign trade Textile
Polarizer sheet,
Manufacturing 690,228,637.37 60.41% 710,855,827.41 61.56% -2.90%
Knitted clothing
Lease and
Rental， Accom
Management of 23,475,132.76 2.05% 23,219,071.21 2.02% 1.10%
modation
Property
In RMB
2015 2014
Classification of
Proportion in Proportion in Increase/Decrease
products Items
Amount operation Amount operation (%)
costs(%) costs(%)
Polarizer sheet Direct materials 556,833,603.63 48.74% 461,812,116.08 39.99% 20.58%
Polarizer sheet Direct labor 37,928,773.59 3.32% 54,053,911.43 4.68% -29.83%
Polarizer sheet Power costs 36,800,389.29 3.22% 43,634,785.84 3.78% -15.66%
Manufacturing
Polarizer sheet 155,739,361.77 13.63% 193,144,929.41 16.73% -19.37%
costs
Knitted clothing Direct materials 9,355,247.57 0.94% 13,167,470.51 1.14% -28.95%
Knitted clothing Direct labor 6,128,505.48 0.54% 7,223,027.50 0.63% -15.15%
17
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Knitted clothing Power costs 1,948,677.34 0.12% 1,524,251.84 0.13% 27.84%
Manufacturing
Knitted clothing 9,685,069.84 0.90% 8,233,176.54 0.71% 17.63%
costs
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□Yes √ No
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 835,192,823.01
Proportion of sales to top 5 customers in the
68.08%
annual sales(%)
Information of the Company’s top 5 customers
No Name Amount9RMB) Proportion(%
1 Customer 1 318,888,124.08
2 Customer 2 300,886,664.10
3 Customer 3 141,768,566.85
4 Customer 4 40,520,628.95
5 Customer 5 33,128,839.03
Total -- 835,192,823.01
Other explanation :
√Applicable □Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors,
supervisors and senior management, core technical staff, shareholders with holding of more than 5% stocks, actual
controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 534,056,563.76
Percentage of total purchase of top 5 suppliers In total
48.91%
annual purchase(%)
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Supplier 1 296,940,863.66 27.19%
18
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2 Supplier 2 75,552,796.42 6.92%
3 Supplier 3 61,352,505.60 5.62%
4 Supplier 4 53,754,323.72 4.92%
5 Supplier 5 46,456,074.36 4.26%
Total -- 534,056,563.76 48.91%
Other explanation :
√Applicable □Not applicable
There exists no the association relations between the top five suppliers and the company, and the directors,
supervisors and senior management, core technical staff, shareholders with holding of more than 5% stocks, actual
controllers and other affiliated parties do not have direct or indirect equity of the major suppliers.
3.Expenses
In RMB
Increase/Decrea
2015 2014 Notes
se(%)
Sale expenses The main is to strengthen the control of
11,743,914.73 14,067,625.17 -16.52%
transportation cost
Administration Strict control of management costs,
103,044,704.30 119,496,105.45 -13.77%
expenses reduce costs and expenses
Financial expenses As the JPY exchange rate rise,
-24,448,318.10 -30,392,840.60 19.56% resulting in JPY denominated payables
increased foreign exchange losses.
4.R& D Expenses
√Applicable □Not applicable
There were a total of 27 R&D projects in the year, range from the optimization of the technical process of the
production, plans of raw materials’ costs to the research and development of IPS products, small and medium size
of OLED products and large-size TFT products. Up to now, the company basically completed the R&D goal set
up in the beginning of the year, and such products as IPS had been recognized by many customers and those
products had entered into the batch supply stage. During the reporting period, a total of 92 new products (counted
by product type) had been successfully sold with signed contracts, which further enriched the company’s product
category to meet the various market demands.
Situation of Research and Development Input by the Company
2015 2014 Increase/Decrease(%)
Number of Research and
98 113 -13.27%
Development persons (persons)
Proportion of Research and
7.66% 8.84% -1.18%
Development persons
19
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount of Research and
Development Investment (In 30,867,294.24 55,070,970.28 -43.95%
RMB)
Proportion of Research and
Development Investment of 2.52% 4.55% -2.03%
Operation Revenue
Amount of Research and
Development Investment 0.00 0.00 0.00%
Capitalization (In RMB)
Proportion of Capitalization
Research and Development
0.00% 0.00% 0.00%
Investment of Research and
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
√Applicable □Not applicable
The total R & D investment in 2015 accounted for the proportion of the operating income declined when
compared with 2014, which mainly due to the enhancement on control of R&D expenses and using free samples
provided by suppliers in the development stage and seeking alternative raw materials.
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2015 2014 Increase/Decrease(%)
Subtotal of cash inflow received
1,411,832,217.48 1,378,284,193.13 2.43%
from operation activities
Subtotal of cash outflow
received from operation 1,372,247,717.11 1,426,985,687.18 -3.84%
activities
Net cash flow arising from
39,584,500.37 -48,701,494.05 181.28%
operating activities
Subtotal of cash inflow received
125,106,336.14 327,482,005.36 -61.80%
from investing activities
Subtotal of cash outflow for
507,193,753.16 148,919,307.85 240.58%
investment activities
Net cash flow arising from
-382,087,417.02 178,562,697.51 -313.98%
investment activities
20
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Subtotal cash inflow received
244,759,302.00 160,096,040.10 52.88%
from financing activities
Subtotal cash outflow for
256,361,490.38 135,821,591.36 88.75%
financing activities
Net cash flow arising from
-11,602,188.38 24,274,448.74 -147.80%
financing activities
Net increase in cash and cash
-349,573,483.42 154,318,407.34 -326.53%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
（1）The net cash flows from operating activities increased by RMB88.286 million and 181.28% year on year
mainly due to Sales growth of cash received Polaroid products, through strengthening the raw material
procurement and utilization management, reduced cash outflows due to the purchase of goods;
（2）The net cash flows from investing activities decreased by RMB2023757 million and 61.8% year on year
mainly due to structured deposits reduced principal and income received Over the previous period;
（3）Subtotal of cash out-flow from investment activity increased by RMB358.27 million and 52.88% year on
year;
（4）The net cash flows from financing activities increased by RMB84.6633 million and 84.58% year on year,
Mainly for the increase in cash obtained from loan compared with the prior period；
（5）The net cash out-flow from financing activities increased by RMB120.5399 million and 88.75% year on year,
Mainly for the increase in debt’s repayment compared with the prior period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□Applicable √Not applicable
Ⅲ.Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Disposal of the investment
income obtained from
Investment incme 94,812,557.58 219.72% No
available-for-sale financial
assets
Loss on inventory valuation,
impairment loss on
Impairment of long-term equity investment,
61,792,990.95 143.20% No
assets loss on goodwill
impairments and loss on bad
debts.
Non-operating 24,122,339.62 55.90% Mainly for the amortization Yes
21
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
income of governmental subsidy
related with asset
Non-operating
260,665.61 0.60% No
expenses
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2015 End of 2014 Proportio
Proportion in Proportion in n
Notes to the significant change
Amount the total Amount the total increase/d
assets(%) assets(%) ecrease
752,314,871.5 1,101,771,561. Mainly caused by the investment of
Monetary fund 25.34% 38.20% -12.86%
3 28 structural deposit.
Accounts 182,766,372.0 Mainly caused by the increase in
6.16% 156,123,570.35 5.41% 0.75%
receivable 5 receivables during the credit period
Mainly caused by the increase in the
308,775,044.8
Inventories 10.40% 230,659,122.24 8.00% 2.40% inventory of Shengbo Optoeletronic’s
8
polarizer
Investment real 134,389,963.0
4.53% 140,905,275.45 4.88% -0.35%
estate 5
Long-term equity
22,879,269.06 0.77% 20,795,057.33 0.72% 0.05%
investment
790,019,487.1
Fixed assets 26.61% 824,871,367.33 28.60% -1.99%
6
Construction
75,803,586.70 2.55% 79,822,149.34 2.77% -0.22%
inprocess
Mainly caused by the increase of the
Short-term loans 53,866,521.87 1.81% 24,676,594.72 0.86% 0.95%
capital flow loan at the current period
120,000,000.0
Long-term loans 4.04% 124,653,863.70 4.32% -0.28%
0
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on Cumulative fair Impairment Purchased Sold amount in
Amount at year Amount at
Item fair value value change provisions in amount in the the reporting
beginning change in the recorded into the reporting reporting period year end
22
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
reporting equity period period
period
Financial assets
3.
Avaliable-for-sa 10,054,476.6
52,605,249.65 3,045,914.97
le financial 0
assets
Subtotal of 10,054,476.6
52,605,249.65 3,045,914.97
financial assets 0
10,054,476.6
Total 52,605,249.65 3,045,914.97
0
Financial
0.00 0.00 0.00
Liability
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
Ⅴ.Investment situation
1. General
□Applicable √Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable √Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □Not applicable
In RMB
Book Cumulat Purchas Book
Mode of Changes Sale
value ive fair e Gain/los value
Stock Initial accounti in fair amount Account Source
Security Security balance value amount s of the balance
Abbrevi investm ng value of in the ing of the
category code at the changes in the reportin at the
ation: ent cost measure the this this items shares
beginni in this g period end of
ment period period
ng of equity period the
23
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
the reportin
reportin g period
g period
Financia
Domesti
l assets Debt eq
c and 8,940,5 8,329,4 835,408 98,573. 10,054,
000030 Fawer FVM 0.00 0.00 0.00 availabl uity
foreign 98.31 43.85 .72 30 476.60
e for
stocks
sale
Financia
Domesti VICTO
l assets
c and R 2,050,1 44,275, 46,395, 44,345, Legal
000018 FVM 0.00 0.00 0.00 availabl
foreign ONWA 24.86 805.80 738.95 614.09 shares
e for
stocks RD
sale
10,990, 52,605, 835,408 46,395, 44,444, 10,054,
Total -- 0.00 0.00
723.17 249.65 .72 738.95 187.39 476.60
Disclosure date for the
notice of approval by the January 17,2015
Board (If any)
Disclosure date for the
notice of approval by
February 4,2015
shareholders’ Meeting (If
any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
N/A.
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Amount of Accumulat Proportion Total Use and Amount of
Total
Total raised ive amount of raised Amount of Whereabo the Raised
Total Amount of
Year of Way of amount of capital of of raised capital of the uts of the Fund with
raised the Raised
Raising Raising Raised which the capital of which the Unused Unused over 2
capital Fund Used
Funds purpose which the purpose Raised Raised Years’
at the
was purpose has been Fund at Fund Idling
24
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
changed in has been changed the
the report changed (%) Current
period Period
Yet the
balance of
the raised
funds is
RMB
841.0932
million(not
including
the amount
of RMB
150
million
temporaril
y added to
liquidity),
after
Non-publi deducting
2013 96,175.1 69.71 1,851.9 0 0 0.00% 84,109.32 0
c issue the funds
required
for the No.
6 line
project
constructio
n, the
remaining
funds was
planned to
permanentl
y add to
liquidity
for the
company's
main
business.
Total -- 96,175.1 69.71 1,851.9 0 0 0.00% 84,109.32 -- 0
Notes to use of raised capital
During the reporting period, Shengbo Optoelectronic fund-raising accounts of expenditure RMB 0.6971 million all for Phase-II
project of polarizer sheet for TFT-LCD As of the reporting period, the total investment RMB18.5190 million investment schedule
1.93%.
25
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
Phase-II
July 2,
project of polarizer No 96,175.1 96,175.1 69.71 1,851.9 1.93% 0 -- Yes
2017
sheet for TFT-LCD
Subtotal of committeed
-- 96,175.1 96,175.1 69.71 1,851.9 -- -- 0 -- --
investment projects
Investment orientation for und arising out of plan
No
Total -- 96,175.1 96,175.1 69.71 1,851.9 -- -- 0 -- --
The “Cooperation Framework Agreement” signed on the cooperation in polarizer between the company
and Ntto Kogyo has been submitted to the first Provisional general meeting for examination in 2014. At
that time, Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of the company, is
transferring partial equity of the company by way of the open collection of transferee, the controlling
shareholder considers that it is inappropriate to examine the major issues and makes waiver to vote. Thus,
Situation about not
the agreement was not approved. The original plan on the purpose to fund-raising of Project II of polarizer
coming up to schemed
with TFT-LCD hasn’t been approved. Thereafter, based on the previous technical cooperation negotiations
progress or expected
between the company and Nitto Denko, in order to establish closer relations of cooperation, then both sides
revenue and the reason
carried out multi rounds of discussions and negotiations for the new way of cooperation and cooperation
( in specific project0
program, but did not reach a consensus. In view of the reality that the Framework Agreement on
Cooperation cannot be achieved, the company signed the Termination Contract on the Agreement with
Nitto Denko on Feb 3, 2015 after consultation. At the same time, the company’s item that original planned
by technical cooperation with Nitto Denko to produce Polaroid products and with intended alteration of the
use of the raised funds for the original project was terminated. （Announment No.2015-08）.
According to the latest situation of the industry development, the company optimized the original
construction plan for the second-phase project of TFT-LCD polarizer, and then according to the results
Notes to significant
concluded by the experts, the company decided to continue to promote the construction of the No.6 line
change in feasibility of
project. At the same time, in light of there was a large funds gap between the actual raised funds and the
the project
planned raised funds, then by comprehensive consideration of the company’s production line scale and the
operation pressure, the company planned to terminate the project of No.7 line, and the corresponding
26
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
amount of funds of RMB309,272,200 for No.7 line project changed to permanently add to the liquidity.
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of Not applicable
the implementation site
of the projects invested
with the proceeds
Adjustment of the Not applicable
implementation way of
investment funded by
raised capital
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Applicable
On March 27, 2015, the 13th meeting of the sixth board of directors examined and adopted the Proposal
for Supplementing Working Capital with Part of Idle Raised Proceeds. It was approved to use RMB 300
Using the idle proceeds million unused raised funds for the liquidity, using the period from the date of approval by the Board of
to supplement the directors not more than 12 months since being added, the specific date is from March 27, 2015 to March
working capital on 26, 2016, trasfered raise funds RMB 120 million from the account containning Shengbo Optoelectronic for
temporary basis additional liquidiry on March 27, 2015, trasfered raise funds RMB 30 million from the account
containning Shengbo Optoelectronic for additional liquidiry on December 18,2015. As of December
31,2015,Use of idle funds RMB 150 million from the account containning Shengbo Optoelectronic for
additional liquidiry.
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
As of December 31, 2015, the balance of the raised funds was RMB 841.0932 million (not including the
About application and
amount of RMB 150 million temporarily added to liquidity), after deducting the funds required for the No.
status of the proceeds
6 line project construction, the remaining funds was planned to permanently add to liquidity for the
unused
company's main business.
Problems existing in
application of the Non -existent
proceeds and the
27
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
information disclosure
or other issues
（3）Changes of raised funds projects
□ Applicable √ Not applicable
There is no change in raised funds in company reporting period.
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
N/A.
2.Situation of Substantial Stake Sale
√ Applicable □ Not applicable
Proporti
on on of
Net
the net
profits Whether
profits
contribu execute
of the
ted by Whether as
contribu
the the schedul
ted
equities involve ed and
Influenc amount
Transact to the Pricing Whether Relation d if failed,
e of the of the
ion listed princial was the ship equities should Disclos
Counter Sold Sold selling equities Disclos
price(R compani es of the related with the all state the ure
party equities date of the selling ure date
MB’000 es from equities transacti conter complet reasons Index
Compan to the
0) the selling on party ed the and the
y listed
period-b ownersh adopted
compani
egin to ip measure
es to the
the sold transfer ments of
total
date the
amo9un
(RMB’0 cmpany
t of the
000)
net
profits
Shenzhe Equity Complet The Implem Announ
n 18% of Decemb ed gains carrying No ent Decemb cement
4,552.0 497.71
Fenghui Shenzhe er 29, 55.8 RMB42. amount No relations No accordin er 18, on the
3 %
run n 2015 2919 of the hip g to 2015 Result
Investm Tongyi million. net plan of the
28
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
ent Co., Silk bringing assets Transfer
ltd. Co., about was of 18%
Ltd. impact RMB Stake of
to an 45.5203 Shenzhe
extent million n
on 2015 accordin Tongyi
annual g to the Silk Co.
perform evaluati Ltd
ance. on on Held by
the base the
date of Compan
Sep 30, y’s
2015, Subsidia
which ry-Shen
also zhen
determi Sheng
ned the Bo
price, Optoele
and the ctronic
evaluati Co.,Ltd
on value issued
was the on
listing Cninf.
price
which
openly
listed
for
transfer
on the
Shenzhe
n United
Property
Rights
Exchan
ge from
Nov 19,
2015 to
Dec 16,
2015.
□ Applicable √ Not applicable
29
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Shenzhen
Lisi Domestic
26,082,375.6 22,328,586.3
Industrial Subsidiary trade, Lease 2360000 7,344,530.84 4,006,895.35 3,339,547.05
0 0
Development
Co., Ltd.
Shenzhen Accommodat
29,611,849.1 23,221,343.8 10,599,958.3
Huaqiang Subsidiary ion, business 10005300 2,666,974.53 2,037,698.94
2 2 4
Hotel center;
Shenfang
Property Property 10,063,591.1
Subsidiary 1600000 9,998,217.61 2,530,936.18 343,003.96 237,474.95
Management management 6
Co., Ltd.
Production of
Shenzhen
fully
Beauty
electronic 43,342,324.8 29,358,135.3 28,571,862.5 -6,242,933.1 -6,001,151.9
Century Subsidiary 25000000
jacquard 2 2 0 8 9
Garment Co.,
knitting
Ltd.
whole shape
Shenzhen
Shengbo Production
2,034,656,33 1,296,498,01 806,524,649. -59,740,845. -38,651,601.
Opotoelectric Subsidiary and sales of 300000000
2.50 8.34 99 91 10
Technology polarizer
Co., Ltd
Shenzhen
Operating
Shenfang
Sub- import and 47,140,509.2 301,315,234.
Import & 5000000 6,461,595.60 765,597.28 658,645.95
Subsidiary export 6 09
export Co.,
business
Ltd.
Shengtou
Sub- Sales of 76,981,765.6 418,483,421.
（HK）Co., HKD10000 1,188,706.90 37,180.79 -427,335.99
Subsidiary polarizer 8 90
Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable √ Not applicable
30
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
In recent years, along with the global tendency of making large-size TFT-LCD panel, upon the improvement of
the display technology and such factors as high resolution, wide viewing angle, touch application, lighter
appearance brought by pluralism of products application, the momentum of global TFT-LCD industry
development is strong. Upon the dual effects of the product line construction and the enormous downstream
market, the core of the global display industry has been speeded up for the transfer to the Mainland China.
Meanwhile, the Mainland China has been the big country in consumption of global electronic products, in which
demands and supplies are strong, thus provided a great market opportunity for further developing the panel
display industry.
From 2015 to 2018, it’s expected that 14 panel production lines shall be put into operation early or late in
Mainland China. In 2016, the high-generation above generation-6 production lines in Mainland China will reach
13 lines, and in year 2018, it will reach 21 lines, among which, the high-generation above generation-8.5 lines will
reach 12 lines, thus the panel production capacity will exceed 100 million square meters, the production lines and
the production capacity in China will both rank first in the world. Along with the increasingly growth of the panel
output, it will boost the growth of the matching components for the panel, such as the polarizer and other related
matching industries.
At present, the major global suppliers for the polarizer included Nitto Denko, Sumitomo Chemical, LG Chemical,
SDI, Chimei materials and BenQ materials. Among them, Nitto Denk, Sumitomo Chemical and LG chemical are
ahead of other vendors in the market share with obvious advantages.
Along with the rapid development of the flat panel display industry in Mainland China, the overseas larger
polarizer manufacturers, such as LG Chemical, SDI, Chimei materials, have set up factories in Mainland China in
succession. Besides, the domestic polarizer manufacturers have speeded up the pace of development, and the
downstream and upstream companies also waited for the opportunity to carry out the industrial integration
through building the polarizer production line. From 2016 to 2018, along with newly established polarizer
production lines that put into operation in succession, the industrial layout of the polarizer industry in Mainland
China will have a significant change.
In 2014, the National Development and Reform Commission and the Ministry of Information Technology jointly
issued "2014-2016 New Display Industry Innovation and Development Action Plan". The Action Plan pointed out
that by 2016, the systematic supporting industry of new display will be possibly completed, which will make the
ratio of key matching materials for panel of small and medium size TFT-LCD reaching to 60% and the ratio of
key matching materials for panel of large size TFT-LCD and AMOLED reaching to 30%. The polarizer is one of
the indispensable key materials for TFT-LCD and AMOLED panel, however, currently the matching rate by
domestic products are far less than 30% which below the industrial safety value. Hence, whether from the policy
perspective or the market prospective, there was a huge space for the domestic development of the polarizer,
meanwhile, the company’s reasonable industrial layout of the polarizer would enable the company’s overall
operating status get continuous improvement.
2.The company's development strategy
The company as the first domestic professional manufacturer of the polarizer committed to the R&D, production
31
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
and technology service of the polarizer for the long-term. In the future, the company will continue to focus on the
polarizer field, combine with national industry development planning, seize the market opportunity, utilize its own
advantages, boldly draw on the home and foreign advanced technology and management methods, speed up the
pace of cooperation with foreign parties, deepen the reform, keep on innovations and continuously improve the
company’s technology level to make the company further advanced towards the strategic goal of being a leading
company in innovation and technology for providing display solutions and fast supporting services.
According to the "Made in China 2025" plan, China will focus on the strategy of upgrading the manufacturing
sector. As the display industry is the important part for the electronic information industry, so that it will be
greatly encouraged by the national policy. The company would continuously improve and perfect the human
resource system to build up management personnel and technical personnel echelon which is in line with the focus
of transformation and elevation of the company, and the company strongly pushed forward the reform and
innovation, continuously enriched the product range, elevated the technical quality and technical process level and
by means of the professional development and large-scale of operation to increase the company’s profitability and
raise the overall competiveness.
3.Possible risks
The period from 2015 to 2018 is the golden age for the newly built high-generation production lines put into
operation in the Mainland China and there will be 14 construction-in-progress high generation above generation-6
panel production lines put into operation. It’s expected that by the year of 2018, the LCD panel production
capacity in Mainland China will be more than 100 million square meters, among which, the panel production
capacity of high-generation above genenation-8.5 will exceed 85 million square meters, thus the production
quantity and production capacity of the high-generation TFT-LCD panel will both rank first in the world. Due to
the maturity of the industry chain was not balanced, the development of matching industries were lagged behind
the panel industry. According to DisplaySearch’s research data, the domestic matching rates for the substrate glass,
liquid crystal materials, target materials and the polarizer those are the key materials in the upstream TFT-LCD
industry respectively were only 3%, 5%, 2% and 9%. While facing the huge demand for the polarizer in the
coming years, the overseas polarizer manufacturers, such as LG Chemical, SDI, Chimei materials, had set up
factories in Mainland China in succession. Besides, the domestic polarizer manufacturers had speeded up the pace
of development, and the downstream and upstream companies also waited for the opportunity to carry out the
industrial integration through building the polarizer production line, thus the industrial layout of the polarizer
industry in Mainland China will have a significant change with increasingly fierce competition. Meanwhile, due
to the characteristic of the terminal display product that upgraded fast, there are higher request for the quick
response ability on technology and products, and the declining trend on the product price will constantly squeeze
the profit margins for the upstream polarizer industry.
Globally, in recent years, the market of the polarizer almost reaches the equilibrium of market supply and demand
and the supply slightly exceeds the demand. However, along with the gradual completion of the high-generation
panel production lines and the enhancement of the existing production capacity, the situation of short supply will
be gradually presented in some regions especially in Mainland China. Only calculated from the high generation
above generation-8.5 panel production lines, the demand of the polarizer will be more than 160 million square
meters. The company’s advantages, such as technology advantage, talents advantage, market advantage, quality
advantage, management advantage and policy advantage, accumulated in more than 20 years, which would enable
the company’s customer groups not only in the original low and medium-end panel companies but extended to
large-scale, high-end panel companies. In the past two years, by virtue of its own efforts and the way that doing
cooperation with overseas polarizer companies and so forth, the company further improved the operation level,
thus the product quality and stability had been further improved. In the future, by means of promoting the
32
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
production line construction, strengthening the internal resource integration and external cooperation and so forth,
the company will have a more rapid and robust development.
4..The key work in 2016
(1). Continuously enhancing the operating capacity for the polarizer business
The first is to stabilize the existing customers, actively develop new customers and map out the layout planning of
the polarizer market in advance; the second is to utilize the R & D center to support and guarantee the production
technology, innovate the incentive mechanism, inspire the enthusiasm of R & D and try the best to do the new
product development and reserve; the third is to continue to optimize the technology for No. 4 line, raise the
productivity and reduce the loss by means of the equipment transformation and raising the production speed and
so forth measures; the fourth is to adjust the product structure, deeply dig the potential of line 1-3, increase the
revenue and raise the efficiency, comprehensively enhancing the operating capacity for the polarizer business.
(2). Ensuring the stability and growth of the company's other businesses
Property companies will focus on the rental rate and capital recovery rate, continuously carry out the enhancement
plan for property leasing and raise the rent income; All the final acceptance of the Guan Hua Building project and
its relevant leasing work will be completed in the first half of the year, so as to generate benefits as soon as
possible; the industrial and trade enterprises will focus on strengthening the internal management, adjusting the
product structure, improving the technical process of the production, exploring the new sales pattern and realizing
reducing losses.
(3). Fully promoting the construction of the No. 6 line project
Upon carefully summarizing the experience and lessons of the construction of the first phase project of the
polarizer, then speed up the second phase project construction of the No.6 line, ensuring the completion of the
established investment plans and progress.
(4). Completing the establishment of the “13th Five-Year " strategic planning
Continually to demonstrate and improve the company's central task, the business planning objectives and key
investment project plans of the “13th Five-Year” for establishing the “13th Five-Year” strategic planning, shaping
the action guideline to support the company’s development in the next five years.
(5). Strengthening the management of innovation and nurturing the core team
Strengthen then market awareness, enhance the technological innovation and the business model innovation, and
reinforce the company’s core competitiveness. Directional cultivate the talents, continually improve the career
promotion channel for staff and build echelon talents team using the company’s own team as the core team.
(6). Grasping the use and development of the existing resources to achieve maximum efficiency
According to the overall arrangement of the company's business development of the polarizer, the company shall
fully grasp the utilization and development of the existing resources, revitalize the stock and excite the increment
to support the development of the company's polarizer business.
(7). Unremittingly managing the safety production and maintaining the harmony and stability of the company
Firmly establish the concept of safety production, strengthen the responsibility of the implementation,
unremittingly implement the investigation and management for hidden safety hazards and integrate the awareness
of safety production into the whole production process to ensure the smooth realization of the current goal and the
long-term goal.
33
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
To know more about the situation of
polarizer industry and the situation of the
company’s production and operation,
June 16,2015 Onsite investigation Organization please see details in “Log of Investor
Relation Activities”posted on the
interactive platform of investor relation
on June, 16, 2015.（No：2015-01）。
To know comprehend the development
process and production and operation
status of the company’s polarizer
business, please refer to “Record of
September 23,2015 Onsite investigation Organization
Relations Activities between the
Company and Investors” published on
the interactive platform of investor
relations on Sep 23, 2015.(No.2015-02）
Reception times 2
Reception agency amount 2
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
34
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□ Applicable √ Not applicable
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
Based on the needs of the construction of TFT-LCD polarizer project and the company business development,
there were no cash dividends and there were no capital reserves converted into share capital in the last three years.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2015 0.00 8,497,227.40 0.00% 0.00 0.00%
2014 0.00 -113,591,328.26 0.00% 0.00 0.00%
2013 0.00 47,222,590.97 0.00% 0.00 0.00%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
√ Applicable □ Not applicable
In the reporting period, it was profitable and the profits
distributed among common shareholders were positive, but the Purpose of and plans to use undistributed profits.
reason for the profit-sharing scheme by cash was not proposed.
Current capital is highly limited, and continuing fund is Supplement current capital and fund to support Guan Hua
necessary for Guan Hua Building under construction. Building.
II.Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
35
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Time of
Peiod of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
As Shenzhen Investment
Holdings Co., Ltd., the
controlling shareholder of the
company, committed when
the restricted-for-sale shares
from the shares restructuring
were listed for circulation in
the market: i. if they plan to
sell the shares through the
securities exchange system in
the future, and the decrease of
the shares they hold reaches
Shenzhen Share
Commitment on 5% within 6 months after the August 4, Sustained and Under
Investment reduction
share reform first decrease, they will 2006 effective Fulfillment
Holdings Co., Ltd. commitment
disclose an announcement
indicating the sale through the
company within two trading
days before the first decrease;
ii. They shall strictly observe
the “Guidelines on Transfer
of Restricted-for-sale Original
Shares of Listed
Companies” and the
provisions of the relevant
business principles of
Shenzhen Stock Exchange.
Commitment in
the acquisition
report or the
report on equity
changes
Commitment
made upon the
36
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
assets
replacement
Shenzhen Investment
Holdings Co., Ltd. signed a
“Letter of Commitment and
Statement on Horizontal
Competition Avoidance”
when the company issued
non-public stocks in 2009.
Pursuant to the Letter of
Commitment and Statement,
Shenzhen Investment
Holdings Co., Ltd. and its
wholly owned subsidiary,
subsidiaries under control or
any other companies that
have actual control of it shall
not be involved in the
business the same as or
similar to those Shenzhen
Commitments
Textile currently or will run in
on horizontal
the future, or any businesses
Commitments Shenzhen competition,
or activities that may October 9, Sustained and Under
made upon Investment related
constitute direct or indirect 2009 effective Fulfillment
issuance Holdings Co., Ltd. transaction
competition with Shenzhen
and capital
Textile; if the operations of
occupation
Shenzhen Investment
Holdings Co., Ltd. and its
wholly owned subsidiaries,
subsidiaries under control or
other companies that have
actual control of it compete
with Shenzhen Textile in the
same industry or contradict
the interest of the issuer in the
future, Shenzhen Investment
Holdings Co., Ltd. shall urge
such companies to sell the
equity, assets or business to
Shenzhen Textile or a third
party; when the horizontal
competition may occur due to
the business expansion
concurrently necessary for
37
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Investment
Holdings Co., Ltd. and its
wholly owned subsidiaries,
subsidiaries under control or
other companies that have
actual control of it and
Shenzhen Textile, Shenzhen
Textile shall have priority.
The commitments during the
period non-public issuance in
2012: 1. Shenzhen Investment
Holdings, as the controlling
shareholder of Shenzhen
Textile, currently hasn't the
production and business
activities of inter-industry
competition with Shenzhen
Textile or its share-holding
subsidiary. 2. Shenzhen
Investment Holdings and its
share-holding subsidiaries or
other enterprises owned the
actual control rights can't be
Commitments
directly and indirectly on
on horizontal
behalf of any person,
competition,
company or unit to engage in July 14, Sustained and Under
related
the same or similar business 2012 effective Fulfillment
transaction
in any districts in the future
and capital
by the form of share-holding,
occupation
equity participation, joint
venture, cooperation,
partnership, contract, lease,
etc., and ensure not to use the
controlling shareholder's
status to damage the
legitimate rights and interests
of Shenzhen Textile and other
shareholders, or to gain the
additional benefits. 3. If there
will be the situation of
inter-industry competition
with Shenzhen Textile for
Shenzhen Investment
Holdings and its
38
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
share-holding subsidiaries or
other enterprises owned the
actual control rights in the
future, Shenzhen Investment
Holdings will promote the
related enterprises to avoid
the inter-industry competition
through the transfer of equity,
assets, business and other
ways. 4. Above commitments
will be continuously effective
and irrevocable during
Shenzhen Investment
Holdings as the controlling
shareholder of Shenzhen
Textile or indirectly
controlling Shenzhen Textile.
Commitment to non-public of
fering during the second phas
Shenzhen e project of Shen Textile shar
Share limited March 25, Under
Investment es subscribed lock handle, loc 2016-03-25
commitment 2013 Fulfillment
Holdings Co., Ltd. king Shen Textile non-public
offering on the stock market o
f 36 months.
Equity incentive
commitment
Other
commitments
made to
minority
shareholders
Executed timely
Yes
or not?
If the
commitments
failed to
complete the
execution when
No
expired, should
specifically
explain the
reasons of
unfulfillment
39
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
and the net stage
of the working
plan
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained
□Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting polcy, estimates or calculation method in the period.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Peking Certified Public Accountants（Special General Partnership）
Remuneration for domestic accounting firm 45
40
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(RMB’0000)
Continuous life of auditing service for domestic
5
accounting firm
Name of domestic CPA Xiao Yi, Lan Tao
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable □Not applicable
In the report year, the Company engaged Peking Certified Public Accountants as the internal control audit body in
2015. The audit remuneration was RMB 0.25 million (including traveling expenses).
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
Other litigation matters:
During the reporting period, the company received the No.28 respondent notice issued by Shenzhen Intermediate
People's Court (2014) Foreign legislation, the plaintiff association of Hong Kong Xieli Automobile Co., Ltd
liability disputes has been formally accepted. The company as the first defendant, Shenzhen Xieli Automobile Co.,
Ltd. was the second defendant. The plaintiff requested: 1, the economic loss of tort liability by the total amount of
RMB 31.8579 million ; 2, the second defendant involved in joint liability of the amount of compensation; 3, the
litigation fee paid by two co-defendants. Currently the case was in process, the company temporarily unable to
determine the impact of the litigation on the company's profit in current or future period.
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
During reporting period, there was no effective judgment of a court and large amount of debt maturity that the
41
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
company, its controlling shareholders and actual controller failed to perform or pay off.
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of
Amount price of of
of the pricing Ratio in approve approve Way of Date of
Related Relation Type of Price of of trade similar informa
related the similar paymen disclosu
parties ship trade trade RMB0’ trade tion
transacti related trades d d t re
000 availabl disclos
ons transacti
e ure
ons （RMB limited
’0000） or not
(Y/N)
The
Chairma
n of the
Compan Sale
Tianma
y was products Sales of Market Agreem
Microelec
Vice to polarizer Principl ent 207.7 0.26% 600 No Transfer 207.7
tronic
Chairma related sheet e price
Co., Ltd.
n of parties
the
compan
y
Total -- -- 207.7 -- 600 -- -- -- -- --
Details of any sales return of a large
Not applicable
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine Not applicable
related-party transactions by type to
occur in the current period(if any)
42
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Reason for any significant difference
between the transaction price and the Not applicable
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □No
Due from related parties
Newly
Amount
Does there increased Interest in
Opening recovered in Ending
exist amount in the
Related Relationshi Causes of balance the balance
non-operati the Interest rate reporting
parties p formation (RMB reporting (RMB’0000
on capital reporting period(RM
‘0000) period(RM )
occupancy? period(RM B’0000)
B’0000)
B’0000)
The
Chairman
Shenzhen
of the
Tianma
Company Sale
Microelectr No 56.81 243.01 264.83 34.99
was Vice products
onics Co.,
Chairman
Ltd.
of the
company
Anhui
Huapeng Sharing
Contract fee No 180 180 360
Textile Co., company
Ltd.
Shenzhen
Sharing
Dailishi Contract fee No 25.75 80.86 78.89 27.72
company
Underwear
43
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Co., Ltd.
Influence of the related
rights of credit and
liabilities upon the
In the report period,Increase investment income of RMB2.6086 million.
company’s operation
results and financial
position
Due to related parties
Amount
Amount
newly Interest in
Opening repaid in the Ending
Causes of increased in the reporting
Related parties Relationship balance(RM reporting Interest rate balance
formation the reporting period(RMB’
B’0000) period(RMB’ (RMB’0000)
period(RMB’ 0000)
0000)
0000)
Shenzhen
Xinfang Sharing Current
24.48 24.48
Knitting Co., company amount
Ltd.
Shenzhen
Sharing Current
Xiangjiang 4 4
company amount
Trade Co., Ltd
Shenzhen
Changlianfa
Sharing Current
Printing & 58.46 40.25 7.04 91.67
company amount
dyeing Co.,
Ltd.
Shenzhen
Haohao
Sharing Current
Property 347.95 70 417.95
company amount
Leasing Co.,
Ltd
Yehui
Sharing Current
International 107.15 6.65 113.8
company amount
Co., Ltd.
Shengbo（HK）Sharing Current
31.5 31.5
Co., Ltd. company amount
Shenzhen
Shenchao Controlled
Interest
Technology by the same 3,280.65 619.41 3,900.06
payable
Investment party
Co., Ltd.
44
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Indluence of the related
rights of credit and liabilities
upon the company’s In the report period, Increase financial interest expense of RMB 6.1941 million.
operation results and
financial position.
5. Other significant related-party transactions
√Applicable □Not applicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic Technology
Co., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen
Branch, First Tower Subbranch signed “ Contract on Consigned Loan ” , of whose main content is:
Shenzhen Shenchao Technology Investment Co., Ltd applied to the bank for 200 million RMB of construction of
dedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo Optoelectronic
Technology Co., Ltd The term of the loan is 108 months from the day when the first installment of entrusted loan
is transferred to the account of the Company. As of December 31,2015,The Company actually received a loan of
RMB 160 million.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
http//www.cninfo.com.cn. Announcement
Announcement of related Transactions December 12, 2009
No.2009-55
Announcement of Resolutions of the Second http//www.cninfo.com.cn. Announcement
December 30,2009
provisional shareholders’ general meeting No.2009-57
Announcement of related Transactions http//www.cninfo.com.cn. Announcement
July 1, 2010
progress No.2010-26
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
45
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
No any lease for the Company in the reporting period..
2.Guarantees
□Applicable √ Not applicable
No any guarantees for the Company in the reporting period..
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Explanation about other significant matters
√Applicable□Not applicable
(I) Optimization and demonstration of the second-phase project scheme on polarizer for TFT-LCD
Given SAPO Photoelectric and Nitto Denko’s failure to reach a cooperative agreement on manufacturing polarizer,
they undersigned Dissolution of Contract, on February 3rd, 2015. We had intended to produce polarizer in
collaboration with Nitto Denko. However, such failure ruined the purpose of funds raised for the second-phase
polarizer for TFT-LCD. For details Juchao Website:（http://www.cninfo.com.cn）on February 6, 2015(Announcement
No.2015-08).
Profound and extensive market survey, technology exchange and customer contacts were carried out to make sure
that the second-phase project would embrace fine market prospect and profitability. Meanwhile, the scheme for
the second-phase polarizer for TFT-LCD (line 6 and line 7) was optimized as the status quo of polarizer. Based on
experts’ demonstration on the project, it was determined to carry forward the line 6. RMB 700.34 million is
intended to be invested in the optimized line 6, construction period of which is from March, 2016 to December,
2017. At present, line-6 construction group is established, investment plan and construction schedule are
determined, open bidding for main machine procurement and contract singing involved are performed. It is
projected to achieve design and construction of relevant projects by 2016, installation and commission of line 6
and trial production, as well as mass production by 2017.
In light of less net amount of actual funds raised for the second-phase project than the planned ones, it intends to
terminate line 7 after overall consideration of scale of production lines and business pressure and change RMB
46
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
309.2722 million (including interest) for line 7 to current capital which permanently replenishes primary
businesses.
(II) 18% equity transfer of Tongyi held by Shengbo Optoelectronicc
On November 10, 2015, 19th session of the 6th board of directors examined and adopted the Proposal Proposal on
18% Equity Transfer of Tongyi Silk Plant Held by Shengbo Optoelectronic Photoelectric. 18% Equity of Tongyi
with assessed value RMB 45.5203 million was transferred to Shenzhen Fenghuirun Investment Co., Ltd, with the
purpose of pooling funds to develop polarizer as the primary business and fulfilling strategic transformation.
Shengbo Optoelectronicc and Fenghuirun undersigned State-Owned Property Right Transfer Contract in
December, 17, bringing about impact to an extent on 2015 annual performance. For details Juchao Website:
（ http://www.cninfo.com.cn ）on November 11, 2015, November 17, 2015 and December 18, (Announcement
No.2015-40, 2015-41,2015-42 and 2015-43)).
XIX.Major issues of subsidiary
√Applicable□Not applicable
1. The matters involved with Dissolution of Contract bearing the signature of Shengbo Optoelectronicc and Nitto
Denko are indicated in “XVIII, explanation of other important matters” under Chapter V of 2015 Annual Report.
2. The matters involved with 18% equity transfer of Tongyi held by Shengbo Optoelectronic are indicated in
“XVIII, explanation of other important matters” under Chapter V of 2015 Annual Report.
XX.Social responsibility
√Applicable□Not applicable
(1)The protection of shareholder’s rights and interests
In the reporting period, we strictly followed Corporation Law, Securities Law, Corporate Governance Standards
for Listed Companies and other laws and regulations to meliorate governance structure and make operation and
business more standard. We invariably upheld the general meeting of stockholders, board of directors, board of
supervisors and consultation system of independent directors as core, improved corporate governance structure
and upgraded management systems. We adhered to the mission of “responsible for shareholders, value-added
assets and stable return”, paid more attention to improve internal control system in the presence of operation and
business, took effective steps to prevent operational risk, and guaranteed and safeguarded shareholders’ rights and
interests, thus laying a solid foundation for sound and sustainable development. Independent directors’ meeting
convened this year was in fine conformance with relevant laws and regulations and Articles of Corporation. They
kept a close eye on business operation, fulfilled their duties and came up with valuable and professional advice for
day-to-day operation and system perfection. In this way, they played a significant part in safeguarding the
company and shareholders’ legitimate rights and interests.
It is determined this year to make more efforts to advance information disclosure and transparency, make the most
of multi-platform to protect the rights and interests due for investors, promptly answer the investors, improve
transparent information and safeguard medium and small shareholders’ legitimate interests.
(2) The protection of legal right of staff
We value human resource management, uphold “unity, vitality, enterprising” management philosophy, provide
official Labor Contract and various statutory social insurances and welfares according to Labor Law and related
laws and regulations, respect and protect employee’s legitimate interests and aim for harmonious, stable
47
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
labor-capital relationship. Thorough human resource management system and performance assessment system are
established and optimizing in execution. In reporting period, human resource management system, position
competition, appointment and dismissal system, performance assessment system, assessment and management of
probation confirmation, salary management system, entry and demission management and labor contract
management system, etc, were revised and improved for humanistic care and supporting strategy implementation.
Company intensifies safety production, improves the control system, enhances the contingency plan, safety
production training and troubleshooting, reform of hidden danger and advances safety management to guarantee
safety and occupational health of employees.
(3) The protection of environment
Modern “green enterprise” is company’s long-term goal, which will be achieved by green circulation in all
process of industry chain. In reporting period, no occurrence of severe environmental incident; noise, industrial
wastewater, exhaust emission, etc of production passed environmental protection monitoring and accorded with
related laws and regulations. Moreover, “green office” is promoted and various educational activities of
environmental protection are carried out to disseminate awareness of energy conservation and emission reduction
and coordinate production and environmental protection.
(4) The protection of consumer rights and interests
“Innovative, professional, advanced, sustainable” has always been our management philosophy. Responsibility to
customers, in another word, professional, personalized, all-around products and service, represents our value and
ultimate goal. Sustainable customer-oriented service and impeccable product quality motive our performance and
sustainable development and guarantee long-term customers. And our long-term partnership is established on the
basis of initiative attention, quick responding and sincere care to customers.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state
environmental protection department.
□ Yes □ No √ Not applicable
XXI.Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in
due or undue at the approval date of the annual report
No
48
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VI. Change of share capital and shareholding of Principal
Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional 51,527,72 51,527,72
10.17% 10.17%
subscription 6 6
2.State-owned legal person 51,457,97 51,457,97
10.16% 10.16%
shares 6 6
3.Other domestic shares 69,750 0.01% 69,750 0.01%
Domestic Nature shares 69,750 0.01% 69,750 0.01%
II.Shares with unconditional 454,994,1 454,994,1
89.83% 89.83%
subscription 23 23
405,563,8 405,563,8
1.Common shares in RMB 80.07% 80.07%
73 73
2.Foreign shares in domestic 49,430,25 49,430,25
9.76% 9.76%
market 0 0
506,521,8 506,521,8
III. Total of capital shares 100.00% 100.00%
49 49
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
49
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
2. Change of shares with limited sales condition
□Applicable √Not applicable
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
preferred shareh
Total number Total The total number o
olders at the end
of common shareholders at f preferred shareho
of the month
shareholders at the end of the lders voting rights
30,984 32,443 0 from the date of 0
the end of the month from the restored at period-e
disclosing the
reporting date of disclosing nd(if any)(See
annual report(if
period the annual report Notes 8)
any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number of share pledged/frozen
Proportio Changes
of shares of of
Shareholders Nature of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
50
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen
State-owned legal 234,069,4 51,457,97 182,611,4
Investment 46.21% 0
person 36 6 60
Holdings Co., Ltd.
Qianhai Life
insurance Co., Ltd. 20,384,81 11,158,06 20,384,81
Other 4.02%
－Self funds 67 6
Huatai Portfolio
Shenzhen
Shenchao
State-owned 16,129,03 16,129,03
Technology 3.18%
Legal person 2 2
Investment Co.,
Ltd.
Anhui Guofu
Industrial Domestic non
Investment Funds State-owned 0.73% 3,708,341 1,238,500 3,708,341
Mangement Co., Legal person
Ltd.
Anhui Chujiang Domestic non
Investment Group State-owned 0.65% 3,304,545 3,304,545 3,304,545
Co., Ltd. Legal person
Domestic Nature
Xia Keyun 0.60% 3,028,912 3,028,912 3,028,912
person
MORGAN
STANLEY & CO. Foreign Legal
0.53% 2,689,464 2,689,464 2,689,464
INTERNATIONA person
L PLC
Domestic Nature
Sun Huiming 0.48% 2,432,526 436,179 2,432,526
person
China Foreign
Economic Trade
Trust Co., Ltd.－
Other 0.41% 2,100,000 2,100,000 2,100,000
Yunfeng Securities
Investment Trust
plans
Domestic Nature
Liu Fei 0.28% 1,417,996 1,417,996 1,417,996
person
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if any )(See Notes
3)
Related or acting-in-concert parties Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
51
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
among shareholders above Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this,
the Company did not whether there is relationship between the top ten shareholders holding
non-restricted negotiable shares and between the top ten shareholders holding
non-restricted negotiable shares and the top 10 shareholders or whether they are persons
taking concerted action defined in Regulations on Disclosure of Information about
Shareholding of Shareholders of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Shenzhen Investment Holdings Co., RMB Common
182,611,460 182,611,460
Ltd. shares
Qianhai Life insurance Co., Ltd.－Self RMB Common
20,384,816 20,384,816
funds Huatai Portfolio shares
Shenzhen Shenchao Technology RMB Common
16,129,032 16,129,032
Investment Co., Ltd. shares
Anhui Guofu Industrial Investment RMB Common
3,708,341 3,708,341
Funds Mangement Co., Ltd. shares
Anhui Chujiang Investment Group RMB Common
3,304,545 3,304,545
Co., Ltd. shares
RMB Common
Xia Keyun 3,028,912 3,028,912
shares
Foreign shares
MORGAN STANLEY & CO. placed in
2,689,464 2,689,464
INTERNATIONAL PLC domestic
exchange
Foreign shares
placed in
Sun Huiming 2,432,526 2,432,526
domestic
exchange
China Foreign Economic Trade Trust
Co., Ltd.－ RMB Common
2,100,000 2,100,000
Yunfeng Securities Investment Trust shares
plans
RMB Common
Liu Fei 1,417,996 1,417,996
shares
Explanation on associated relationship Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
or consistent action among the top 10 Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,
shareholders of non-restricted the Company did not whether there is relationship between the top ten shareholders holding
negotiable shares and that between the non-restricted negotiable shares and between the top ten shareholders holding
top 10 shareholders of non-restricted non-restricted negotiable shares and the top 10 shareholders or whether they are persons
52
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
negotiable shares and top 10 taking concerted action defined in Regulations on Disclosure of Information about
shareholders Shareholding of Shareholders of Listed Companies.
Explanation on shareholders The Company Shareholder Liu Fei holds 202,400 shares through ordinary stock account.
participating in the margin trading holds 1,215,596 shares of the Company through stock account with credit transaction and
business(if any )(See Notes 4) guarantee of Shenwan Hongyuan Securities Co., Ltd.,The total amount is1,417,996 shares.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
Providing guarantee to
municipal state-owned
enterprises, managing
state-owned equity of
enterprises other than those
directly supervised by
Municipal State-owned
Assets Commission,
Shenzhen Investment
Xiong Peijin October 13, 2004 767566421 conducting asset
Holdings Co., Ltd.
reorganization, system
transformation and capital
operation of affiliated
enterprises, making
investment and doing other
businesses authorized by
the Municipal State-owned
Assets
Equity of other Shen Property（000011），Quantity of shares held 379.74 million，Shareholding ratio：63.72%；
domestic/foreign listed Shenbo（000019），Quantity of shares held 48.17 million，Shareholding ratio：14%Shen Realestate
company with share （000029），Quantity of shares held 642.88 million，Shareholding ratio：63.55%；Shen Universe
controlling and share （000023），Quantity of shares held 14.79 million，Shareholding ratio：10.66%；Pingan（601318），
participation by Quantity of shares held962.72 million，Shareholding ratio：5.27%；Guosen Securities（002736），
controlling shareholder in Quantity of shares held2749.52 million，Shareholding ratio：33.53%,；Guotai Junan（601211）
reporting period Quantity of shares held624.07 million，Shareholding ratio：8.18% and Etop information（834386）
53
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Quantity of shares held 42 million，Shareholding ratio：60%.
Change of the actual controller in the reporting period
□Applicable √Not applicable
N/A
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
Performing the responsibilities
of investors on behalf of the
State-owned Assets Regulatory
state and supervising and
Commission of Shenzhen Gao Zimin Jul 31, 2004 K3172806-7
managing state-owned assets
Municipal People's Government
according to authorization and
law.
Equity of other
domestic/foreign listed Except for Shenzhen Holdings Co., Ltd., the holding shareholder of the company, other domestic
company with share
and foreign listed companies of the equity held by the actual controller haven’t been shown in the
controlling and share
participation by list of the top ten shareholders of the company.
controlling shareholder in
reporting period
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
54
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% shareheld
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
55
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
The Company had no preferred shares in the reporting period.
56
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change ein shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
Starting Expiry held at increased decreased held at
Office changes
Name Positions Sex Age date of date of the at the at the the
status increase/d
tenure tenure year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Board
chairman, January August
Zhu Jun In office Male 52 0 0 0 0 0
General 16,2015 15,2016
Manager
August August
Chao Jin Director In office Female 53 0 0 0 0 0
16,2013 15,2016
Wang May August
Director In office Male 51 0 0 0 0 0
Yongjian 4,2010 15,2016
May August
Lin Lebo Director In office Male 54 0 0 0 0 0
20,2015 15,2016
Jin Director, August August
In office Female 44 0 0 0 0 0
Zhenyuan CFO 16,2013 15,2016
Independ
Zhang May August
ent In office Male 56 0 0 0 0 0
Yong 4,2010 15,2016
Director
Independ
Shi May August
ent In office Female 48 0 0 0 0 0
Weihong 4,2010 15,2016
Director
Independ
August August
He Qiang ent In office Male 63 0 0 0 0 0
16,2013 15,2016
Director
Chairman
of the
Wang superviso May August
In office Male 48 0 0 0 0 0
Weixing ry 20,2015 15,2016
committe
e
Li Wei Superviso In office Male 50 April August 0 0 0 0 0
57
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
r 21,2009 15,2016
Employee
Zhang August August
superviso In office Male 40 0 0 0 0 0
Xiaodong 9,2013 15,2016
r
Feng Deputy July August
In office Male 53 0 0 0 0 0
Junbin GM 30,2003 15,2016
Zhu Deputy Septembe August
In office Male 51 93,000 0 0 0 93,000
Meizhu GM r 23,2008 15,2016
Secretary
Jiang to the January August
In office Female 45 0 0 0 0 0
Peng board of 16,2015 15,2016
directors
Board January January
Wang Bin Former Male 45 0 0 0 0 0
chairman 5,2007 12,2015
August April
Lou Chao Director Former Male 61 0 0 0 0 0
16,2013 14,2015
Zhang Deputy January June
Former Male 50 0 0 0 0 0
Hong GM 5,2007 19,2015
Secretary
to the October January
Li Jiang Former Male 38 0 0 0 0 0
board of 23,2013 16,2015
directors
Total -- -- -- -- -- -- 93,000 0 0 0 93,000
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Director, Board
Wang Bin Former January 12,2015 Due to the Job Changes
Chairman
Secretary to the
Li Jiang board of Dismissal January 16,2015 Due to internal job changes
directors
Lou Chao Director Former April 14,2015 Jue to Retirement
Chairman of the
Lin Lebo supervisory Former April 14,2015 Due to the Job Changes
committee
Deputy General
Zhang Hong Former June 19,2015 Due to Resignation for personal reasons
Manager
58
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
(1) Director
Zhu Jun, Male, Born in 1963, Master degree，senior engineer , member of the Communist party, He served
successively as secretary of Lige Village, Yutai County, Shandong Province, workshop director of Shandong
Jining Cotton Mill, deputy factory director of Jining Chemical Fibre Factory, office director of Jining Textile
Industry Company, deputy county head of Wenshang County, Shandong Province, office director of Shandong
Textile Department, chief of Personnel Education Division, manager of Enterprise management Dept, general
manager assistant and Deputy General Manager of the Company. He served as Board Chairman of Shengbo
Optoelectronic Technology Co., Ltd. And Director and Vice Board chairman of Tianma Microelectronic Co., Ltd.
He served as secretary of Party Committee and General Manager of the Company.
Chao Jin, Female, Born in 1962, Master degree, Senior political engineer, Economic engineer, member of the
Communist party,She served successively as teacher of Shanxi Chinese Medicinal Material School and Jilin
Business College, head of Employment Section of Personnel and Employment Dept. of the Company, office
director and manager of Personnel Dept. of subsidiary and general manager secretary of the Company. she served
as Deputy General Manager and the board secretary of the Company. She served as Vice secretary of Party
Committee，Discipline Committee, Director of the Company.
Wang Yongjian , Male, Born in 1964,Master degree, Economic engineer , member of the Communist party, He
served successively as Financial Analyst Financial Manger and Chief Financial Officer of U.S.Digital Equipment
(China) Company, Senior staff and principal staff of Shenzhen Government Economic Restructuing Office,
Manager of China South Securities Co., Ltd., Deputy General Manager of Administrative Headquarters, Deputy
Director of office, the board secretary of Shenzhen Shahe Industrial Group ., Deputy General Manager of Shahe
Industrial Company, He served as Deputy General Manager of Shenzhen Holdings Invetment Co., Ltd. He served
as Director of the Company.
Lin Lebo , Male, born in 1961, Bachelor Degree, auditor, member of communist party. He used to be deputy
director, director, vice President of the union, party branch secretary in Shenzhen Audit bureau;served as director
in shenzhen auditing firm, executive vice President in Shijixingyuan Co., Ltd.,, manager of audit department and
secretary of the party branch in Shenzhen investment management company, manager of asset management
department and secretary of the party branch in Shenzhen investment management company;used to serve as
chairman of the board and party secretary in and shenzhen coptic green industry development co., Ltd., deputy
manager in shenzhen Tongchan industrial co., Ltd., director, general manager, deputy party secretary in shenzhen
Tongchan packaging group co., Ltd., chairman of the supervisory board in inspection group in the southern
electronic product testing (shenzhen) co., Ltd.. Now serve as Executive director and Deputy General Manager of
Shenzhen Shenchao Technology Investment Co., Ltd. He served as Director of the Company.
Jin Zhenyuan, Female, born in 1971, Master Degree, Senior Accountant, CPA, international financial management
division. She used to serve as Shenzhen Lionda Group Chief Accountant, Finance Minister in Shenzhen Oriental
Enterprise Ltd., Finance Minister in Shenzhen new century drinking Co., Finance Director in Yili Industrial Co.,
Ltd. of Shenzhen, Finance Minister in Shenzhen, China Transportation Industry Corporation, director and Chief
Financial Officer in Shenzhen City-Property Group, , Director in Shenzhen Beauty Star Co., Ltd., Director and
Chief Financial Officer of Shenzhen Wuzhou Guest House, LLC. She now serve as the Director and Chief
Financial Officer of the Company,
Zhang Yong, Male, Born in 1959, Doctor of laws , Lawyer, once served successively as Deputy director of
59
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
International Economic Law Dept of China University of Political Science ,Associate professor of International
Economic Law Dept of Wuhan University, Judge of Shenzhen Intermediate People’s Court Second chamber and
Third chamber,president and secretary of Party Committee of Shenzhen Lawyer Association, CPPCC member of
Shenzhen, He served as independent Director of Shenzhen Agricultural Products Co., Ltd., He now serves as
Partner of Guangdong Renren law firm, first level lawyer, a member of the Shenzhen Municipal People's
Government Office of Legislative Affairs legal expert advisory committee, the executive director of the
Guangdong Provincial Law Association, vice president of the Shenzhen Municipal Law, a member of China
International Economic and Trade Arbitration Commission Expert Advisory Committee, a member of Shenzhen
Arbitration Commission, members of the Advisory Committee for Huizhou Arbitration Commission , the
Company's independent directors.
Shi Weihong, Female, Born 1967, Doctor, certified public accountant, Certified asset appraiser, Certified tax agent,
once served successively as Auditor, Project Manger and Director of Guangming Certified public Accountants,
she served as Independent Director of Shenzhen Tili(Group) Co., Ltd, as Independent director of Shenzhen SEG
Samsung Co., Ltd. Senior partner of Shenzhen Guangming Certified public Accountants, she now serves as
Partner of Accounting Firm and Independent director of the Company.
He Qiang , Male, born in 1952, Professor of finance at the Central University of Finance and Economics, Ph.D.
tutor, Director of Securities and Futures Institute, enjoy special government allowances. He was a member of 11th
and 12th CPPCC National Committee, of China Finance Society, the China Investment Association, of China
Economic and Social Council of the other positions. He served as independent director in the Air Investment
Holding Co., Ltd., in Hengyi Petrochemical Co., Ltd., in Golden State Securities corporation, Dongbei Securities
and in the Company. the Company's independent directors.
（2）Supervisor
Weixing Wang, male, born in 1968, graduate degree, economist, member of Communist Party of China, has
served successively as cadre of Qingdao TV Factory, staff and senior staff member of Shenzhen Administration of
Industry and Commerce (price bureau) Futian, Che Kung Temple branch, senior staff member and principal staff
member of Shenzhen Administration of Industry and Commerce (price bureau) registration sub-office, principal
staff member of Shenzhen General Asset Management Office, deputy director of Shenzhen Asset Management
Office collective enterprise department, deputy director of general office of Shenzhen Asset Management Office,
deputy director of petition acceptance office of Shenzhen Asset Management Office, director, vice-secretary of
CPC and secretary of discipline commission of Shenzhen Tongchan Packaging Group Co., Ltd, director,
vice-secretary of CPC and secretary of discipline commission of Shenzhen Tongchan Group Co., Ltd and
currently takes the post of chairman of supervisory board of the Company.
Li Wei, Male, Born in 1965, Master degree, Economic engineer, member of the Communist party,once served
successively as Staffer of Shenzhen Aihua Electronics Company, Cadres of Shenzhen Municapal Taiwan Affairs
Office,Assistant director of Office ,Secretary of Board Chairman of Zhongshen Internation Cooperation
office, .Assistant Manager of Office and Deputy Director of Assets Dept of Shenzhen Trade Investment Holding
Company,Deputy Director of Law Affair Dept and Deputy director of Enterprise No2.Dept of Shenzhen
Investment Management Co., Ltd. Deputy director of Enterprise and No.1 Dept and No2.Dept of Shenzhen
Holdings Investment Co., Ltd., He new served as Deputy General Manager of Shenzhen Shentou Investment
Development Co., Ltd. and Supervisor of the Company.
Zhang Xiaodong , Male, born in 1975, Master Degree, communist party member. He joined the company in
August 1999, used to serve as manager assistant, manager of subordinary of Shenzhen textile (Holdings) Co., Ltd.,
manager in business management department; used to be manager in Shenzhen Beautify Centenary clothing co.,
Ltd. He new serve as party department minister and superior of the company.
60
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（3）Senior Executives
Feng Junbin , Male, Born in 1962, College degree ,Auditor, He served successively as special enterprise controller
of Guangdong Dapu County Finance Bureau, deputy section head of Guangdong Fengshun County, director of
Audit Dept., manager of Enterprise Management Dept., general manager assistant and supervisor of the Company,
he served as Deputy general manager of the Company.
Zhu Meizhu, Male, Born in 1964, Master degree, Senior engineer, once served successively as chief Deputy
general Manager of Enterprise Management Dept of the Company, Director of R& D Center, Assistant General
Manager, He served as Deputy general Manager of the Company and Administer director of Shenzhen Shengbo
Optoelectronic Technology Co., Ltd.
Jiang Peng, Female, born in 1970, Bachelor Degree, member of communist party, She served as officer of the
Secretary Office of Shandong Fishery Group Co.,Ltd., Deputy Director of the Secretary office and Securities
affairs Representative of Shandong Zhonglu Oceanic Fisheries Co., Ltd., Securities Representative of Huafu
Holding Co., Ltd., Securities affairs representative and Officer of the Secretariat of the Board of the Company,
now serves as the secretary of the Board of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharting date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Deputy
Wang Yongjian Shenzhen Investment Holdings Co., Ltd. General July 1, 2009 Yes
Manager
Shenzhen Shenchao Technology General January 19,
Lin Lebo Yes
Investment Co., Ltd. Manager 2015
Deputy
Shenzhen Shentou Porperty Developement
Li Wei General August 6, 2014 Yes
Co., Ltd.
Manager
Offices taken in other organizations
□Applicable √Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
In the report period, The remuneration of directors and senior management paid by the company is determined by
“Director Compensation Management System” and “Executive Compensation Management and Evaluation
System”, the remuneration of independent directors is determined as per the resolution of shareholders’ meeting,
61
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
and the remuneration of supervisors paid by the company is determined by their position held in the company.
Remueration to directors, supervisors and senior executives in the reporting period
Unit ：RMB’0000
Total Remuneration
remuneration actually receivect
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Board Chairman,
Zhu Jun Male 52 In Office 55.66 No
General Manager
Chao Jin Director Female 53 In office 53.28 No
Wang Yongjian Director Male 51 In Office - Yes
Lin Lebo Director Male 54 In office 18.33 Yes
Jin Zhenyuan Director, CFO Female 44 In Office 40.00 No
Independent
Zhang Yong Male 56 In office 8 No
Director
Independent
Shi Weihong Female 48 In Office 8 No
Director
Independent
He Qiang Male 63 In office 8 No
Director
Chairman of the
Wang Weixing supervisory Male 48 In Office 25.67 Yes
committee
Li Wei Supervisor Male 50 In office - Yes
Employee
Zhang Xiaodong Male 40 In Office 32.48 No
supervisor
Feng Junbin Deputy GM Male 53 In office 52.31 No
Zhu Meizhu Deputy GM Male 51 In Office 51.85 No
Secretary to the
Jiang Peng Female 45 In office 35.71 No
board of directors
Lou Chao Director Male 61 Former - Yes
Zhang Hong Deputy GM Male 50 Former 48.80 No
Total -- -- -- -- 438.09 --
Notes ：During the reporting period, staff receive annual performance pay included pre-tax remuneration of 2013
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
62
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VI. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 48
Number of in-service staff of the main subsidiaries（person） 1,231
Total number of the in-service staff（person） 1,279
Total number of staff receiving remuneration in the current
1,388
period（person）
The number of the parent company and the main subsidiary’s
109
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 855
Sales 33
Technical 106
Financial 33
Administrative 252
Total 1,279
Education
Classified according by education background Number of persons（person）
Postgraduate or above 30
Universities 180
Colleges 125
Mid-school or below 944
Total 1,279
2. Remuneration policies
In the year 2015, the company carried out employees' compensation management work in strict accordance with
relevant national laws and company regulations, and revised compensation management system as per the
company's needs and policy changes. The impeccable compensation system safeguarded the fairness and
rationality of employees' compensation, provided appropriate returns and incentives to employees in terms of their
contributions, and facilitated the co-development of employees and company. In the compensation management
system, company refined relevant regulations, such as Shenzhen Textile (Holdings) Co., Ltd Special Awards
Regulation, Shenzhen Textile (Holdings) Co., Ltd Occupational Pension Regulation, Shenzhen Textile (Holdings)
Co., Ltd housing Provident Fund regulation, etc, which embodied company's humanistic concern.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
3.Training pllan
Company targeted to improve professional skills and support company's operations, it required each post to
complete the forms of Training Needs Questionnaire, Internal Training Courses Recommendation Form,
Employee Individual Development Plan, and company formulated personal and company annual training plans in
accordance with these forms, and simultaneously balanced individual with company and internal training with
external training. Company carried out demand investigation and training evaluation, etc when organizing training
projects to safeguard training effectiveness, so that the company's training plan and content are in line with
positions and overall demands of company’s development, and continuously improve the overall quality of
employees in order to achieve a win-win situation together with employees.
4. Outsourcing situation
□ Applicable √ Not applicable
64
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
In the reporting period, the company regulated operations and strengthen risk control in strict accordance with
Securities Law, Corporation Law, the Shenzhen Stock Exchange Standard Operation Instructions for Main-Board
Listed Companies, Corporate Governance Standards for Listed Companies and other related laws and regulations,
to ensure a healthy and stable development. At present, the basically sound governance system, normative
business operation and impeccable corporate governance structure meet the requirements of the normative
documents for regarding corporate governance of listed companies issued by the China Securities Regulatory
Commission.
In 2015, company held a total of 2 general meetings, convened general meetings, standardized voting procedures
to safeguard the effectiveness and legality in strict accordance with the regulations and requirements of
Corporation Law, Articles of Corporation and Rule of Procedure of Shareholders' Meeting. Companies actively
protected the voting rights of minority investors, and general meetings were convened in the form of live network
to adequately assure small investors of their rights to exercise.
In 2015, the board of directors held 8 general meetings, and the convening and voting procedures were all
conducted in strict accordance with the Articles of Corporation and Rule of Procedure of Shareholders' Meeting.
All the directors performed directors ' duties, exercise directors’ rights, attended related meetings and actively
participated in the training and became familiar with relevant laws and regulations with serious, diligent and
honest attitudes. Independent directors independently performed their duties in strict accordance with Articles of
Corporation, The independent director system and other relevant laws and regulations, expressed fully their
independent opinions on corporate operation, decision-making, and important matters, etc. Strategy, audit,
remuneration, evaluation, nomination committees were established under board of directors, all committees
functioned properly, and performed duties such as internal audits, compensation assessment, nomination of senior
management personnel, and provided scientific and professional advisory opinions for board of directors’
decision-making.
In 2015, the board of supervisors held 5 meetings. The board of supervisors strictly followed the requirements of
Articles of Corporation and Rules of procedure of the board of supervisors and other relevant laws and regulations,
supervised the legal compliance of the duties performed by company's financial personnel and directors, managers
and other senior management personnel in the aim of maintaining the legitimate rights and interests of the
company and its shareholders. All the supervisors fulfilled their obligations, exercised their rights according to the
laws. The convening and voting procedures of the board of supervisors were legal, and the resolutions were legal
and valid. The establishment and implementation of board of supervisors played an active role in improving
corporate governance structure and regulating corporate operations.
In 2015, we further increased information transparency, accomplished investors’ protection and propaganda work.
In the reporting period, except disclosing information in a real, accurate, timely, fair and complete manner in
accordance with the regulatory requirements, various platforms were made full use of, such as telephone, e-mail,
website, especially the interactive platform of investors in Shenzhen Stock Exchange, solved questions brought by
investors, and communicated with medium and small investors interactively, and ensure all the investors obtained
65
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
equal opportunities for informal access. Meanwhile, in the aim of improving the transparency of listed companies,
company accepted investors’ on-site investigation to have comprehensive understandings of the company's
business situation through face-to-face communication with management, also urged the company established a
responsibility to return on investors, improved and enhanced the corporate governance standards.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
√Yes □No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
\ Shenzhen Investment Holdings Co., Ltd., the holding shareholder of the company, is a Shenzhen SASAC
enterprise. The company has complied with the relevant provisions on the state-owned asset management of
holding shareholders to report non-public information to holding shareholders, mainly including:Letters submitted
monthly index table; fee schedule during the reporting, financial assets table, summary quarterly deposits and
borrowings and financing.In order to strengthen the management of non-public information, the company has
strictly controlled the scope of learners, standardized the process of information delivery and strictly implemented
as per the “Management System on Learner of Insider Information”, took practical measures to prevent inside
information leaks and insider trading.
In addition, there is no difference among the governance of the company, “Company Law” and the relevant
provisions of China Securities Regulatory Commission.
II. Independence and Completeness in business, personnel , assets, organization and finance
The code of conduct of the controlling shareholders of the company did not go beyond the general meetings
directly or indirectly to interfere with the decision-making and business activities, the company had independent
and complete business and autonomous operation capacity , achieved “five point separation” in respect of
personnel, financial, asset, agencies, business.
III. Competition situations of the industry
□ Applicable √ Not Applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
The first provisional
The first provisional shareholders’
Provisional
shareholders’ General meeting
shareholders’ 0.02% February 3,2015 February 4,2015
General meeting in in 2015
General Meeting
2015 (No.2015-07)
published on
66
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Securities Times,
China Securities
Journal, Shanghai
Securities
News ,Hong Kong
Commercial Daily
and Juchao
Website
（http://www.cnin
fo.com.cn）
Annual General
LMeeting of
2014(No.2015-26)
published on
Securities Times,
China Securities
Annual Genral Annual General
0.03% May 20,2015 May 21,2015 Journal, Shanghai
Meeting of 2014 Meeting
Securities
News ,Hong Kong
Commercial Daily
and Juchao Website
（http://www.cninfo
.com.cn）
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Zhang Yong 8 1 7 0 0 No
Shi Weihong 8 2 6 0 0 No
He Qiang 8 0 7 1 0 No
Number of general meetings attended 2
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
by independent directors as non-voting
delegates
Notes to failure to personally attend Board Meetings Successively Twice
N/A
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
In 2015, independent directors worked in the Company for not less than 10 working days. Except attending
shareholders' general meetings, board meetings and meetings of special committees on time, they also actively
participated in the activities organized by supervision authority. In the report period, Independent directors
expressed independent opinions on the proposals of the board of directors.The independent director issued
comments on the board of directors, (Refer to Independent Directors 2015 Annual Report disclosed in
http://www.cninfo.com.cn on March 31, 2016). They gave many opinions and suggestions during meetings and
adjour nment and the Company adopted all of them.
IV. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The independent directors of the company are the key members of all professional committees of the Board of
Directors, and are in the majority and the conveners of Audit Committee, Remuneration and Appraisal Committee
and Nomination Committee. Also, all the three independent directors can attend the daily meeting held by every
special committee on time.
(1) Audit Committee: during the reporting period, the Audit Committee has held two meetings, carefully
examined the regular reports of the company and effectively implemented the work schedule of annual reports.
Also, the Audit Committee has reviewed the internal control of the company, supervised the effective
implementation of internal control, the self-assessment of internal control, and heard the reports of production
operation, financial status and development of major matters filed by the management. Before the annual report
audited by the Board of Directors, the Audit Committee shall communicate with annual audit accountant for the
audit opinion, comprehend the audit condition, and make a comprehensive and objective evaluation of the current
annual works finished by the auditors and their professional quality. During the reporting period, Proposal on
Carry a meeting ficused on hiring audit institutions, self-assessment report of the internal control, the Final Accou
nting Report and other matters and reach a resolution.
(2) Remuneration and Appraisal Committee: During the reporting period, the Remuneration and Appraisal
Committee has held one meetings, During the reporting period, Carry a meeting ficused on 2014 performance
appraisal of senior management and reach a resolution.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Nominating Committee: in the reporting period, the Nominating Committee held 1 meeting, convened meetings
regarding the appointment of Secretary of the Board of Directors formulated resolutions.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection aginst any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company complies with “Executive Compensation Management and Evaluation System” to conduct the
evaluation for the accomplishment of annual work of the senior executives. The salaries of the senior executives
are determined according to the duty scope, post value, individual ability, wages level on the market, economic
profits of the company and operation goal accomplishment of senior executives with adhering to the principle of
market orientation, responsibility with unified right, and incentive and equal restriction. During the reporting
period, the senior executives are all qualified in 2014 after evaluation. The directors and the general manager have
conducted the feedback on the annual appraisal evaluation for the senior executives in accordance with the
“Executive Compensation Management and Evaluation System” and proposed the recommendation for
improvement.
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes √ No
About the significant Defects of the internal control found in the internal control self-assessment report in the reporting period
The identification and rectification of deficiency of the internal control:
1. The identification and rectification of deficiency of the internal control in the financial statement
In accordance with above identification standard of deficiency of the internal control in the financial statement,
there is no the serious and important deficiency of internal control in the financial statement during the reporting
period.
2.The identification and rectification of deficiency of the internal control except for that of the financial
statement in accordance with above identification standard of deficiency of the internal control except for that of
the financial statement, there is no the serious and important deficiency of internal control except for that of the
financial statement during the reporting period.
2.Self-evaluation report on internal control
Disclosure date of appraisal report on
March 31,2016
internal control
Disclosure index of appraisal report on Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control
69
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
internal control in 2015 of Peking Certified Public Accountants (QXSZ(2016)No.
Proportion of total unit assets covered by
appraisal in the total assets of the
100.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
100.00%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
In the following circumstances, the
company was identified as existing
non-financial –reporting related
significant defects of internal controlling
defects:
The business activities of the company
seriously violated national laws and
The defects related to financial reports were regulations; (2) The decision-making
divided into general defects, important process of "Three-Importance&
defects and significant defects according to One-Large" were unscientific, leading to
their severity. Significant defects referred to major decision errors, and causing major
one or multiple combinations of controlling property loses to the company; (3)
defects, which may lead to serious deviation Massive loss of key posts or technology
from the controlling objectives. Important talents; (4) The controlling system
defects referred to one or multiple involving important business fields of the
Qualitative criteria
combinations of controlling defects, and company failed; (5) It Caused serious
their severity and economic consequences negative effects on business of the
were below significant defects, but they company, and the effects couldn’t be
could still lead to serious deviation from the eliminated; (6) The evaluation results of
controlling objectives. General defects internal control were significant defects,
referred to other internal controlling defects and couldn’t get effective rectification.
which couldn't constitute significant defects Important defects referred to one or
or important defects. multiple combinations of controlling
defects, and their severity and economic
consequences were below significant
defects, but they could still lead to
serious deviation from the controlling
objectives. General defects referred to
other internal controlling defects which
couldn't constitute significant defects or
70
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
important defects.
Misstatement amount of financial statement
fell into the following intervals: significant
defects: Misstatement amount ≥ 1.5% of
total revenue; Misstatement amount ≥ 10%
of gross profit; Misstatement amount ≥ 1%
of total asset; Misstatement amount ≥ 5% of
net asset. significant defects: 0.5% of Total
revenue ≤Misstatement amount ＜ 1.5% of
total revenue; 5% of gross profit
≤Misstatement amount ＜ 10% of gross
Quantitative criteria Not applicable
profit; 0.5% of Total asset ≤Misstatement
amount ＜ 1% of total revenue; 3% of Net
assets ≤Misstatement amount ＜ 5% of net
assets. General defects:0% of total revenue
＜Misstatement amount＜0.5% of Total
revenue; 2% of gross profitt ＜Misstatement
amount＜5% of total profit; 0% of total
assets ＜Misstatement amount＜0.5 of total
assets; 0% of net assets ＜Misstatement
amount＜3% of net assets.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：
According to the relevant requirements of the “Audit Guideline of Enterprise Internal Control” and the Chinese
CPA criteria, the company has audited the effectiveness of internal control of the financial statement of Shenzhen
Textile (Holdings) Co., Ltd. (Shenzhen Textile) at the date of December 31, 2015.
1. The responsibility of enterprise for the internal control. According to the provisions of “Fundamental Norms
for Enterprise Internal Control”, “Operation Guideline of Enterprise Internal Control” and “Evaluation Guideline
of Enterprise Internal Control”, the company has established, perfected and effectively implemented the internal
control, and made an evaluation for its effectiveness, which are the responsibilities of the Board of Directors of
71
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Textile.
2. The responsibility of CPA. The company shall be responsible for the expression of audit opinions on the
effectiveness of internal control in the financial statement and the disclosure of serious deficiency of internal
control except for the financial statement on the basis of the implementation of audit.
3. The inherent limitation of internal control. There is the possibility of unpreventable errors. In addition, due to
the change of situation, the inappropriate internal control is maybe shown, or the control policy and the abidance
of procedure can be reduced. Based on the audit results of internal control, the future internal control is expected
to have a certain risk.
4. The audit opinions of internal control in the financial statement. The company believes that Shenzhen Textile
has maintained the effective internal control of the financial statement in all the major aspects according to
“Fundamental Norms for Enterprise Internal Control” and the relevant provisions on December 31, 2015.
Peking Certified Public Accountants(Special General Partnership)
Chinese C.P.A.
Xiao Yi
March 29, 2016 Chinese C.P.A.
Lan Tao
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
March 31,2016
internal control (full-text)
Juchao Website: （http://www.cninfo.com.cn）;Audit reort of internal control of Peking
Internal audit report’s opinion Certified Public Accountants (QXSZ(2016)No.1563
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant
No
defectin non-financial report
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
72
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
X. Financial Report
I. Audit report
Type eof audit opinion Standard Unqualified Audit Opinion
Date for signing the auditor’s report March 29,2016
Peking Certified Public Accountants(Special General
Name of audit firm
Partnership)
The audit report number Qin Xin Zi【2016】No.1564
Name of the certified accountants Xiao Yi, Lan Tao
Auditors’ Report
Qin Xin Shen Zi (2016)]No. .
To all shareholders of Shenzhen Textile (Holdings) Co., Ltd.：
We audited accompanying financial statements of Shenzhen Textile (Holdings) Co., Ltd.(the “Company),
including Consolidated and parent Company balance sheet as of December 31, 2015, and the Parent Company and
Consolidated Income statement, The parent company and Consolidated cash flow statement ,The parent Company
and Consolidated Statements of Changes in equity for the year then ended, and the notes to the financial
statements .
1. The responsibility of the Management for the financial statements
Shenzhen Textile (Holdings) Co., Ltd ’s. management is responsible for the preparation and fair presentation of
these financial statements this responsibility includes : (1) Prepare the financial statements according to business
enterprises regulation, so that making reasonable accounting estimate;(2) Design, implementation and
maintenance of internal control related to the preparation of financial statements so that financial statements are
free from material misstatement caused by fraudulent practices or errors.
2. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit in
accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese certified
public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable
assurance as to whether financial statements are free from material misstatement.
Audit involves carrying out audit procedure to obtain the audit evidences about the amounts and disclosure of
financial statements. The selected audit procedure relies on the judgment of certified public accountants, including
the appraisal of risk of material misstatement of financial statements used by fraudulent practices or errors. While
appraising risks, we considered the internal control related to the preparation of financial statements to design
proper audit procedure. The audit also includes the appraisal of suitability of accounting policies selected by the
73
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
management, the reasonableness of accounting estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing
audit opinion.
3. Audit opinion
In our opinion, the financial statements of the Company Wharf present fairly, in all material respects, the
company’s and consolidated financial position as of 31 December 2015, and the Company’s and consolidated
results of operations and cash flows for the year then ended in accordance with Accounting Standards for
Business Enterprises.
Peking Certified Public Accountants(Special General Partnership)
Chinese C.P.A. Xiao Yi
Chinese C.P.A. Lan Tao
March 29,2016
74
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
II. Financial Statements
\Statement in Financial Notes are carried in RMB/CNY
1.Consolidated Balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 752,314,871.53 1,101,771,561.28
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 18,841,745.16 43,412,635.19
Account receivable 182,766,372.05 156,123,570.35
Prepayments 7,853,818.19 27,075,094.81
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 30,298,938.80 13,357,311.32
Dividend receivable
Other account receivable 45,133,672.10 41,843,377.39
Repurchasing of financial assets
Inventories 308,775,044.88 230,659,122.24
Assets held for sales
Non-current asset due in 1 year
Other current asset 513,553,675.47 61,748,415.41
Total of current assets 1,859,538,138.18 1,675,991,087.99
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 43,241,524.06 87,592,297.11
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Expired investment in possess
Long-term receivable
Long term share equity investment 22,879,269.06 20,795,057.33
Property investment 134,389,963.05 140,905,275.45
Fixed assets 790,019,487.16 824,871,367.33
Construction in progress 75,803,586.70 79,822,149.34
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 40,626,936.34 41,771,402.89
R & D petrol
Goodwill 9,614,758.55
Long-germ expenses to be amortized 633,541.50 560,877.06
Differed income tax asset 2,262,532.65 2,607,644.23
Other non-current asset
Total of non-current assets 1,109,856,840.52 1,208,540,829.29
Total of assets 2,969,394,978.70 2,884,531,917.28
Current liabilities
Short-term loans 53,866,521.87 24,676,594.72
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 227,528,808.60 153,026,682.35
Advance payment 28,199,415.11 41,135,510.00
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 35,307,822.40 37,736,705.46
Tax payable 14,682,643.09 8,912,594.55
Interest payable 39,088,887.96 33,037,218.68
76
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Dividend payable
Other account payable 125,775,723.80 112,654,863.06
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 40,000,000.00 75,346,136.30
Other current liability
Total of current liability 564,449,822.83 486,526,305.12
Non-current liabilities：
Long-term loan 120,000,000.00 124,653,863.70
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income 99,524,165.58 66,546,079.96
Deferred income tax liability 10,851,444.74 10,556,420.24
Other non-current liabilities
Total non-current liabilities 230,375,610.32 201,756,363.90
Total of liability 794,825,433.15 688,282,669.02
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,585,130,051.37 1,585,130,051.37
Less：Shares in stock
Other comprehensive income 3,212,187.35 33,389,117.46
Special reserves
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Surplus reserves 70,539,319.86 64,403,027.10
Common risk provision
Undistributed profit 9,166,137.97 6,805,203.33
Total of owner’s equity belong to the
2,174,569,545.55 2,196,249,248.26
parent company
Minority shareholders’ equity
Total of owners’ equity 2,174,569,545.55 2,196,249,248.26
Total of liabilities and owners’ equity 2,969,394,978.70 2,884,531,917.28
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 271,582,749.03 457,379,886.16
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 1,800,000.00
Account receivable 819,054.57 468,887.97
Prepayments 1,754,880.00 2,771,374.00
Interest receivable 22,294,015.02 10,640,957.35
Dividend receivable 7,798,378.51
Other account receivable 72,543,709.78 64,581,392.46
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 260,000,000.00
Total of current assets 636,792,786.91 537,642,497.94
Non-current assets：
Disposable financial asset 41,741,524.06 84,292,297.11
Expired investment in possess
Long-term receivable
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Long term share equity investment 1,779,103,035.67 1,797,651,565.42
Property investment 126,873,096.51 132,976,776.39
Fixed assets 26,579,978.92 27,002,348.21
Construction in progress 38,792,110.90 31,482,502.19
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,378,688.61 1,627,715.16
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 2,556,126.29 3,061,417.30
Other non-current asset
Total of non-current assets 2,017,024,560.96 2,078,094,621.78
Total of assets 2,653,817,347.87 2,615,737,119.72
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 411,743.57 411,743.57
Advance payment 639,024.58 639,024.58
Employees’ wage payable 7,299,686.80 5,878,352.45
Tax payable 12,558,340.06 6,660,135.95
Interest payable
Dividend payable
Other account payable 77,332,555.09 67,479,912.27
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 98,241,350.10 81,069,168.82
Non-current liabilities：
79
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 278,469.57 10,556,420.24
Other non-current liabilities
Total of Non-current liabilities 278,469.57 10,556,420.24
Total of liability 98,519,819.67 91,625,589.06
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,576,547,069.58 1,576,547,069.58
Less：Shares in stock
Other comprehensive income 3,212,187.35 33,389,117.46
Special reserves
Surplus reserves 70,539,319.86 64,403,027.10
Undistributed profit 398,477,102.41 343,250,467.52
Total of owners’ equity 2,555,297,528.20 2,524,111,530.66
Total of liabilities and owners’ equity 2,653,817,347.87 2,615,737,119.72
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 1,226,746,791.62 1,210,952,548.57
Incl：Business income 1,226,746,791.62 1,210,952,548.57
Interest income
80
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Insurance fee earned
Fee and commission received
II. Total business cost 1,302,269,276.48 1,317,382,360.52
Incl：Business cost 1,142,511,012.84 1,154,743,462.84
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 7,624,971.76 7,905,969.24
Sales expense 11,743,914.73 14,067,625.17
Administrative expense 103,044,704.30 119,496,105.45
Financial expenses -24,448,318.10 -30,392,840.60
Asset impairment loss 61,792,990.95 51,562,038.42
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 94,812,557.58 23,294,636.54
Incl: investment gains from affiliates 2,431,042.20 1,788,818.78
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） 19,290,072.72 -83,135,175.41
Add ：Non-operational income 24,122,339.62 21,159,989.26
Including：Income from disposal of
235,533.62 135,925.51
non-current assets
Less：Non business expenses 260,665.61 83,757.49
Incl：Loss from disposal of non-current
260,642.59 83,643.89
assets
IV.Total profit(“-”for loss) 43,151,746.73 -62,058,943.64
Less：Income tax expenses 34,654,519.33 51,532,384.62
V. Net profit 8,497,227.40 -113,591,328.26
Net profit attributable to the owners of
8,497,227.40 -113,591,328.26
parent company
Minority shareholders’ equity
81
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VI. Other comprehensive income -30,176,930.11 9,854,344.17
Net of profit of other comprehensive inco
me attributable to owners of the parent co -30,176,930.11 9,854,344.17
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will b -30,176,930.11 9,854,344.17
e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
-30,375,486.14 9,886,627.82
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
198,556.03 -32,283.65
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income -21,679,702.71 -103,736,984.09
Total comprehensive income attributable
-21,679,702.71 -103,736,984.09
to the owner of the parent company
Total comprehensive income attributable
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.02 -0.22
(II)Diluted earnings per share 0.02 -0.22
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
82
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Legal Representative:Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu
Linying
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 64,473,351.83 63,124,318.89
Incl：Business cost 12,333,803.24 12,482,856.41
Business tax and surcharge 5,494,540.21 5,530,512.60
Sales expense
Administrative expense 28,207,859.60 31,313,410.67
Financial expenses -19,528,024.29 -15,035,734.73
Asset impairment loss 14,939,945.14 -5,163,448.04
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 58,283,064.18 22,062,282.28
Incl: investment gains from affiliates 2,431,042.20 1,788,818.79
II. Operational profit（“-”for loss） 81,308,292.11 56,059,004.26
Add ：Non-operational income 2,047,648.92 3,993,511.97
Including：Income from disposal of
235,233.62
non-current assets
Less：Non business expenses 13,020.92
Incl：Loss from disposal of non-current
13,020.92
assets
III.Total profit(“-”for loss) 83,342,920.11 60,052,516.23
Less：Income tax expenses 21,979,992.46 14,039,596.21
IV. Net profit（“-”for net loss） 61,362,927.65 46,012,920.02
V.Net of profit of other comprehensive i
-30,176,930.11 9,854,344.17
ncome
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
83
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
assified into profit or loss.
（II）
Other comprehensive income that will b -30,176,930.11 9,854,344.17
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
-30,375,486.14 9,886,627.82
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
198,556.03 -32,283.65
ancial statements
6.Other
VI. Total comprehensive income 31,185,997.54 55,867,264.19
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
1,247,874,437.38 1,225,517,209.48
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
84
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 68,431,596.59 77,012,597.33
Other cash received from business
95,526,183.51 75,754,386.32
operation
Sub-total of cash inflow 1,411,832,217.48 1,378,284,193.13
Cash paid for purchasing of
1,157,396,626.23 1,165,323,109.41
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 128,028,856.25 134,633,573.32
Taxes paid 36,667,118.26 80,706,284.79
Other cash paid for business activities 50,155,116.37 46,322,719.66
Sub-total of cash outflow from business
1,372,247,717.11 1,426,985,687.18
activities
Cash flow generated by business
39,584,500.37 -48,701,494.05
operation, net
II.Cash flow generated by investing
Cash received from investment
89,640,023.95 21,307,417.68
retrieving
Cash received as investment gains 4,871,581.37 3,298,701.39
85
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 2,950.00 118,690.00
long-term assets
Net cash received from disposal of
100,386,000.00
subsidiaries or other operational units
Other investment-related cash received 30,591,780.82 202,371,196.29
Sub-total of cash inflow due to
125,106,336.14 327,482,005.36
investment activities
Cash paid for construction of
fixed assets, intangible assets 17,134,529.58 48,919,307.85
and other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
490,059,223.58 100,000,000.00
activities
Sub-total of cash outflow due to
507,193,753.16 148,919,307.85
investment activities
Net cash flow generated by investment -382,087,417.02 178,562,697.51
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 244,759,302.00 160,095,760.79
Cash received from bond placing
Other financing –related ash received 279.31
Sub-total of cash inflow from financing
244,759,302.00 160,096,040.10
activities
Cash to repay debts 255,569,374.85 135,419,166.07
Cash paid as dividend, profit, or
792,115.53 402,425.29
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
256,361,490.38 135,821,591.36
financing activities
86
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Net cash flow generated by financing -11,602,188.38 24,274,448.74
IV. Influence of exchange rate
4,531,621.61 182,755.14
alternation on cash and cash equivalents
V.Net increase of cash and cash
-349,573,483.42 154,318,407.34
equivalents
Add: balance of cash and cash
1,098,232,359.02 943,913,951.68
equivalents at the beginning of term
VI ..Balance of cash and cash
748,658,875.60 1,098,232,359.02
equivalents at the end of term
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
63,862,579.19 62,399,316.68
rending of services
Tax returned
Other cash received from business
18,819,989.01 20,495,286.17
operation
Sub-total of cash inflow 82,682,568.20 82,894,602.85
Cash paid for purchasing of
4,835,838.70 6,021,459.84
merchandise and services
Cash paid to staffs or paid for staffs 14,524,922.32 17,957,199.61
Taxes paid 22,477,306.54 68,706,268.66
Other cash paid for business activities 9,551,257.85 10,533,550.85
Sub-total of cash outflow from business
51,389,325.41 103,218,478.96
activities
Cash flow generated by business
31,293,242.79 -20,323,876.11
operation, net
II.Cash flow generated by investing
Cash received from investment
46,395,738.95 19,302,132.19
retrieving
Cash received as investment gains 3,777,417.02 2,048,981.52
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
87
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
long-term assets
Net cash received from disposal of
100,386,000.00
subsidiaries or other operational units
Other investment-related cash received 30,591,780.82 567,210.00
Sub-total of cash inflow due to
80,764,936.79 122,304,323.71
investment activities
Cash paid for construction of
fixed assets, intangible assets 7,855,316.71 10,228,512.00
and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
290,000,000.00
activities
Sub-total of cash outflow due to
297,855,316.71 10,228,512.00
investment activities
Net cash flow generated by investment -217,090,379.92 112,075,811.71
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received 279.31
Sub-total of cash inflow from financing
279.31
activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing 279.31
IV. Influence of exchange rate
6,989.91
alternation on cash and cash equivalents
V.Net increase of cash and cash
-185,797,137.13 91,759,204.82
equivalents
Add: balance of cash and cash
457,379,886.16 365,620,681.34
equivalents at the beginning of term
88
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VI ..Balance of cash and cash
271,582,749.03 457,379,886.16
equivalents at the end of term
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Other Commo Total of
Items Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
reserves hensive reserves provisio equity
Sustai
l red Other in stock reserve profit equity
nable Income n
stock
debt
506,52 1,585,1 2,196,2
I.Balance at the 33,389, 64,403, 6,805,2
1,849. 30,051. 49,248.
end of last year 117.46 027.10 03.33
00 37 26
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 506,52 1,585,1 2,196,2
33,389, 64,403, 6,805,2
beginning of 1,849. 30,051. 49,248.
117.46 027.10 03.33
current year 00 37 26
III.Changed in the -30,176, 6,136,2 2,360,9 -21,679,
current year 930.11 92.76 34.64 702.71
（1）Total
-30,176, 8,497,2 -21,679,
comprehensive
930.11 27.40 702.71
income
（II）Investment
or decreasing of
capital by owners
89
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit 6,136,2 -6,136,2
allotment 92.76 92.76
1.Providing of 6,136,2 -6,136,2
surplus reserves 92.76 92.76
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
90
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2．Used this term
（VI）Other
506,52 1,585,1 2,174,5
IV. Balance at the 3,212,1 70,539, 9,166,1
1,849. 30,051. 69,545.
end of this term 87.35 319.86 37.97
00 37 55
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
506,52 1,582,9 2,297,8
I.Balance at the 23,534, 59,801, 124,997
1,849. 90,396. 46,577.
end of last year 773.29 735.10 ,823.59
00 13 11
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 506,52 1,582,9 2,297,8
23,534, 59,801, 124,997
beginning of 1,849. 90,396. 46,577.
773.29 735.10 ,823.59
current year 00 13 11
-118,19 -101,59
III.Changed in the 2,139,6 9,854,3 4,601,2
2,620.2 7,328.8
current year 55.24 44.17 92.00
6 5
（1）Total -113,59 -103,73
9,854,3
comprehensive 1,328.2 6,984.0
44.17
income 6 9
（II）Investment
or decreasing of
capital by owners
91
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit 4,601,2 -4,601,2
allotment 92.00 92.00
1.Providing of 4,601,2 -4,601,2
surplus reserves 92.00 92.00
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
92
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2．Used this term
2,139,6 2,139,6
（VI）Other
55.24 55.24
506,52 1,585,1 2,196,2
IV. Balance at the 33,389, 64,403, 6,805,2
1,849. 30,051. 49,248.
end of this term 117.46 027.10 03.33
00 37 26
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment
Other
Other Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
Capital reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
506,521, 1,576,547 33,389,11 64,403,02 343,250 2,524,111
I.Balance at the
end of last year 849.00 ,069.58 7.46 7.10 ,467.52 ,530.66
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
506,521, 1,576,547 33,389,11 64,403,02 343,250 2,524,111
beginning of
849.00 ,069.58 7.46 7.10 ,467.52 ,530.66
current year
III.Changed in the -30,176,9 6,136,292 55,226, 31,185,99
current year 30.11 .76 634.89 7.54
（1）Total
-30,176,9 61,362, 31,185,99
comprehensive
30.11 927.65 7.54
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
93
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit 6,136,292 -6,136,2
allotment .76 92.76
1.Providing of 6,136,292 -6,136,2
surplus reserves .76 92.76
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 506,521, 1,576,547 3,212,187 70,539,31 398,477 2,555,297
end of this term 849.00 ,069.58 .35 9.86 ,102.41 ,528.20
Amount in last year
94
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
In RMB
Amount in last year
Other Equity instrusment
Other
Other Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
Capital reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
506,521, 1,574,407 23,534,77 59,801,73 301,838 2,466,104
I.Balance at the
end of last year 849.00 ,414.34 3.29 5.10 ,839.50 ,611.23
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
506,521, 1,574,407 23,534,77 59,801,73 301,838 2,466,104
beginning of
849.00 ,414.34 3.29 5.10 ,839.50 ,611.23
current year
III.Changed in the 2,139,655 9,854,344 4,601,292 41,411, 58,006,91
current year .24 .17 .00 628.02 9.43
（1）Total
9,854,344 46,012, 55,867,26
comprehensive
.17 920.02 4.19
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit 4,601,292 -4,601,2
allotment .00 92.00
1.Providing of 4,601,292 -4,601,2
surplus reserves .00 92.00
95
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
2,139,655 2,139,655
（VI）Other
.24 .24
IV. Balance at the 506,521, 1,576,547 33,389,11 64,403,02 343,250 2,524,111
end of this term 849.00 ,069.58 7.46 7.10 ,467.52 ,530.66
Legal Representative: Zhu Jun Person in charge of accounting：Zhu Jun Accounting Dept Leader: Mu Linying
96
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Textile (Holdings) Co., Ltd.
Notes to financial statements
Year 2015
(Currency unit for the statements in the notes to these financial statements: RMB)
I. Basic Information of the Company
(1)Co mpan y P rofile
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved
by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was
restructured and named as Shenzhen Textile (Holdings) Co., Ltd. In the same year, approved by the
(1994) No.19 file of Shenzhenshi, the shares of the company were listed in Shenzhen Stock
Exchange. The Company has got the corporate business certification of Shensizi No.
440301105031014, Registration address and headquarter address are 6/F,Shenfang Building,
Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and
marketing of polarizer’s for liquid crystal display, management of properties in bustling business
districts of Shenzhen and reserved high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group
on March 29,2016.
(2)Scope of consolidated financial statements
1.As of the end of the reporting period, there are 7 subsidiaries companies included in the
consolidated financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd.,
Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang
Property Management Co., Ltd., Shenzhen Beautify Garments Co., Ltd., Shenzhen Shenfang Import
& Export Co., Ltd. and Shengtou (Hongkong) Co.,Ltd.
2．The scope of consolidated financial statements this period did not change.
II.Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual
transactions, in accordance with the relevant provisions of Accounting Standards for Business
Enterprises and in accordance with this Note III, "Significant accounting policies and accounting
estimates".
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(2).Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that
will cause material doubts as to the continuation capability of the Company.
III. Important accounting policies and estimations
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of
assets for processing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities
repaid at maturity within one year as of the balance sheet date shall be classified into the current
assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different
controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the
absorbing party, while that other enterprise participating in the combination is a party being
absorbed. Combination date is the date on which the absorbing party effectively obtains control of
the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the
enterprise being combined at the combination date. The difference between the carrying amount of
the net assets obtained and the carrying amount of consideration paid for the combination (or the
total face value of shares issued) is adjusted to the capital premium in the capital reserve. If the
balance of the capital premium is insufficient, any excess is adjusted to retained earnings.
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The cost of a combination incurred by the absorbing party includes any costs directly attributable to
the combination shall be recognized as an expense through profit or loss for the current period when
incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmed
between the ultimate control date and the combining date for the combining party and the combined
party on the acquirement date, and shall respectively offset the initial retained incomes or the profits
and losses of the current period during the comparative statement.
(2)Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination
in which all of the combining enterprises are not ultimately controlled by the same party or parties
both before and after the business combination. For a business combination not involving
enterprises under common control, the party that, on the acquisition date, obtains control of another
enterprise participating in the combination is the acquirer, while that other enterprise participating in
the combination is the acquire. Acquisition date is the date on which the acquirer effectively obtains
control of the acquire.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by
the acquire during the merger on the acquisition date, is recognized as the business reputation.
While the merger cost is less than the fair value shares of identifiable net assets obtained by the
acquire during the merger, all the measurement on the identifiable assets, the liabilities, the fair
value of liabilities and the merger cost obtained by the acquire should firstly be rechecked, and the
difference shall be recorded into the current profits and costs if the merger cost is still less than the
fair value shares of identifiable net assets obtained by the acquire during the merger after
rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months after
acquisition, additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arose from deductible temporary
difference by the acquiree can be achieved, relevant income tax assets can be recognized, and
goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in
stages that involves multiple exchange transactions, according to “The notice of the Ministry of
Finance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and
Article51 of “Accounting Standards for Business Enterprises No.33 - Consolidated Financial
Statements” on the “package deal” criterion, to judge the multiple exchange transitions whether they
are the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs of
this section and “long-term investment” accounting treatment, if it does not belong to the “package
deal” to distinguish the individual financial statements and the consolidated financial statements
related to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquirer’s equity
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investment before the acquisition date and the cost of new investment at the acquisition date, as the
initial cost of the investment, the acquirer’s equity investment before the acquisition date involved
in other comprehensive income, in the disposal of the investment will be in other comprehensive
income associated with the use of infrastructure and the acquire directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the defined benefit plan acquire is remeasured net changes in net assets or
liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquire previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its
fair value and its carrying amount is recorded as investment income. The previously-held equity
interest in the acquire involved in other comprehensive income and other comprehensive income
associated with the purchase of the foundation should be used party directly related to the disposal
of assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the acquire is remeasured defined benefit plans other than changes in net
liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as to
obtain benefits from its operating activities. The relevant events refer to the activities that have
significant influence on the return to the invested party. In accordance with the specific conditions,
the relevant events of the invested party should conclude the sale and purchase of goods and services,
the management of the financial assets, the purchase and disposal of the assets, the research and
development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an
enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant
elements involved in the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other
relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in the
consolidated income statement and consolidated statement of cash flows, as appropriated; no
adjustment is made to the opening balance and comparative figures in the consolidated financial
statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired
during the reporting period, through a business combination involving enterprises under common
control, the financial statements of the subsidiary are included in the consolidated financial
statements. The results of operations and cash flow are included in the consolidated balance sheet and
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the consolidated income statement, respectively, based on their carrying amounts, from the date that
common control was established, and the opening balances and the comparative figures of the
consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the
Company, the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Where a subsidiary was
acquired during the reporting period through a business combination not under common control, the
financial statements was reconciliated on the basis of the fair value of identifiable net assets at the
date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group
transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/ owners’ equity and net
profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented
separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity
investment or other reasons, the remaining equity investment is re-measured at its fair value at the
date when control is lost. The difference between 1) the total amount of consideration received from
the transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current period
when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquire directly related to the disposal of the same assets or
liabilities are accounted when the control is lost(ie, in addition to the former subsidiary is remeasured
at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are
transferred to the current investment income). The retained interest is subsequently measured
according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises
No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises
No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity
investment until the loss of control, need to distinguish between equity until the disposal of a
subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction
disposition of equity investment in a subsidiary, subject to the following conditions and the economic
impact of one or more of cases, usually indicates that several transactions should be accounted for as
a package deal:①these transactions are considered。simultaneously, or in the case of mutual influence
made, ②these transactions as a whole in order to achieve a complete business results; ③the
occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look
alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in
accordance with “without losing control over the disposal of a subsidiary part of a long-term equity
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investments“principles applicable accounting treatment. Until the disposal of the equity investment
loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will
be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing
control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment
corresponding to the difference between the disposal, recognized in the consolidated financial
statements as other comprehensive income, loss of control over the transferred together with the loss
of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more parties have joint control，depending of
the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating
to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net
assets of the arrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common
business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a 、company is a joint ventures, joint venture investment will be recognized as long-term
equity investments .
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and
investments having short holding term (normally will be due within three months from the day of
purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be
measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB
amount when the foreign currency transaction is initially recognized. On the balance sheet date, the
monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet
date, the foreign exchange conversion gap due to the exchange rate, except for the balance of
exchange conversion arising from special foreign currency borrowings capitals and interests for the
purchase and construction of qualified capitalization assets, shall be recorded into the profits and
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losses of the current period. The non-monetary items of foreign currency measured at the historical
cost shall still be translated at the spot exchange rate on the transaction date, of which the RMB
amount shall not be changed. The non-monetary items of foreign currency measured at the fair
value shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be
recorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate on the
transaction date is adopted as the translation exchange rate, with the exception of “undistributed
profits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financial
statement of foreign currency converted above shall be listed in other comprehensive incomes under
the owner’s equity in the consolidated balance sheet.
10.Financial tools
One financial asset or financial liability shall be recognized when the company becomes the party in
the financial instrument contract. The financial assets and the financial liabilities are measured at the
fair value in the initial recognition. For the financial assets and liabilities that measured at the fair
values and the variation included in the current profits and losses, the relative transaction expenses
shall be directly recorded into the profits and losses. For the financial assets and liabilities of other
categories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. For a financial instrument which has an
active market, the Company uses quoted price in the active market to establish its fair value. The
quoted price in the active market refers to the price that can be regularly obtained from exchange
market, agencies, industry associations, pricing authorities; it represents the fair market trading price
in the actual transaction. For a financial instrument which does not have an active market, the
Company establishes fair value by using a valuation technique. Valuation techniques include using
recent arm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysis
and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date
basis. On initial recognition, the Company’s financial assets are classified into including financial
assets at fair value though profit or loss, held-to maturity investments, loans and receivables and
available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or
loss. Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
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B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this portfolio
for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair
value cannot be reliably measured. For such kind of financial assets, fair values are adopted for
subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it
meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or
recognition of relevant gains or losses that would otherwise arise from measuring the financial
instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis,
and is reported to the enterprise’s key management personnels. Formal documentation regarding risk
management or investment strategy has prepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any
gains or losses arising from changes in the fair value and any dividends or interest income earned on
the financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind
of financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, impairment or amortization are recognized in profit or
loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to the
net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Company shall estimate future cash flow considering all contractual terms of the financial
asset or financial liability without considering future credit losses, and also consider all fees paid or
received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are
not quoted in an active market. Financial assets classified as loans and receivables by the Company
include note receivables, account receivables, interest receivable dividends receivable and other
receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit
or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on
initial recognition as available for trade, and financial assets that are not classified as financial assets
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at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included in
the capital reserve, except that impairment losses and exchange differences related to amortized cost
of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until
the financial assets are derecognized, at which time the gains or losses are released and recognized in
profit or loss. Interests obtained and dividends declared by the investee during the period in which the
financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for
the financial assets that measured by the fair value. If there is objective evidence indicating a
financial asset may be impaired, a provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant
single amounts, and carry out an independent impairment test on the financial assets with
insignificant single amounts, or conduct an impairment-related test after they are included in a
combination of financial assets with similar credit risk features so as to carry out. Where, upon
independent test, the financial asset (including those financial assets with significant single amounts
and those with insignificant amounts) has not been impaired, it shall be included in a combination of
financial assets with similar risk features so as to conduct another impairment test. The financial
assets which have suffered from an impairment loss in any single amount shall not be included in any
combination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the
estimated present value of future cash flow. The difference is recorded as impairment loss. If there is
objective evidence to indicate the recovery of value of financial assets after impairment, and it is
related with subsequent event after recognition of loss, the impairment loss recorded originally can be
reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the
amortized cost of the financial assets without provisions of impairment loss on the reserving date.
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily
according to the integrated relevant factors, an available-for-trade financial asset is impaired. The
"serious decline" refers to the cumulative fair value declines more than 30%; "non-temporary
decline" refers to the continuous decline in the fair value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in
fair value that had been recognized in capital reserve shall be removed and recognized in profit or
loss. The amount of the cumulative loss that is removed shall be difference between the acquisition
cost with deduction of recoverable amount less amortized cost, current fair value and any impairment
loss on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the
financial asset is recovered, and it is objectively related to an event occurring after the impairment
loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on
available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on
available-for-trade debt instrument is recorded in the current profit or loss.
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The equity instrument where there is no quoted price in an active market, and whose fair value cannot
be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by
delivery of such an unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a
pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has
transferred substantially all the risks and rewards of the asset, or has neither transferred norretained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over
the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent
liability is recognized. The extent of existence refers the level of risk by the financial asset changes
the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying
amount of the financial asset transferred; and the sum of the consideration received from the transfer
and any cumulative gain or loss that had been recognized in other comprehensive income, is
recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part
that is derecognized, based on the relative fair value of those parts. The difference between (a) the
carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for
the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost
all of the risks and rewards of ownership of the financial assets have been transferred if. Has
transferred the ownership of the financial assets of almost all the risks and rewards to the transferee,
the derecognition of the financial asset; retains ownership of the financial assets of almost all of the
risks and rewards of financial assets that are not derecognised; neither transfers nor retains ownership
of the financial assets of almost all of the risks and rewards, then continue to determine whether the
enterprise retains control of the assets and the accounting treatment in accordance with the principles
described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities. For financial liabilities at fair value through
profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current
period, and transaction costs relating to other financial liabilities are included in the initial recognition
amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the
initial recognition to be measured by the fair value follows the same criteria as the classification by
which financial assets held-for-trade and financial assets designed at the initial recognition to be
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measured by the fair value and their changes are recorded in the current profit or loss.For the
financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values
are adopted for subsequent measurement. All the gains or losses on the change of fair value and the
expenses on dividends or interests related to these financial liabilities are recognized in profit or loss
for the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price
in an active market and their fair value cannot be measured reliably, is subsequently measured by cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for
the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged or cancelled or has expired. An agreement between the Company (an
existing borrower) and existing lender to replace original financial liability with a new financial
liability with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability) derecognized
the consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial
asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be
offset and the net amount is presented in the balance sheet. Except for the above circumstances,
financial assets and financial liabilities shall be presented separately in the balance sheet and shall not
be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. The consideration received from issuing equity instruments, net of
transaction costs, are added to shareholders’ equity. All types of distribution (excluding stock
dividends) made by the Company to holders of equity instruments are deducted from shareholders’
equity. The Group does not recognize any changes in the fair value of equity instruments.
11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
Judgment criteria or The Client Identifies single amount of accounts receivable that is not less than RMB 1 million as
amount standard of account receivable that are individually significant in amount. The Client Identifies single
material specific amount amount of accounts receivable that is not less than RMB 0.5 million as account receivable that
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or amount criteria： are individually significant in amount.
Making an independent impairment test. If any objective evidence shows that it has been
impaired, the impairment-related losses shall be recognized according to the gap between its
Provision method with
material specific amount present value of future cash flow less than its book value, and the several shall be determined to
and provision of specific withdraw the bad debt provision. If there exists no the impairment after the impairment test,
bad debt preparation： they shall be included in a combination of the receivables with similar risk features so as to
withdraw the bad debt provision.
2.The accounts receivable of bad debt provisions made by credit risk Group
(1) Recognition Criteria for the Group and Withdrawing Method of Bad Debt Provision
Name Recognition Criteria Withdrawing Method
Aging Group Division by Aging Aging Analysis Method
(2)Accounts on age basis in the portfolio：
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5 5
1－2 years 10 10
2－3 years 30 30
Over 3 years 50 50
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt
There is any objective evidence shows that it has been impaired.
Provision
The impairment-related losses shall be recognized according to the gap
Withdrawing Method of Bad Debt Provision
between its present value of future cash flow less than its book value.
12.Inventory
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of
production or the services offered.
2．Valuation method of inventory issued
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The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus
the net realizable value at the balance sheet date. The net realizable value refers to the amounts that
the estimated sale price of inventory minus the estimated costs ready to happen till the completion of
works, the estimated selling expenses and the relevant expenses of taxation. The company shall
recognize the net realizable value of inventory based on the acquired unambiguous evidence and in
view of the purpose to hold the inventory, the influence of matters after the balance sheet date and
other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of
the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses
of taxation during the process of normal production and operation. The net realizable value of
inventory that required to conduct processing shall be recognized according to the amounts of the
estimated sale price of the finished products minus the estimated costs ready to happen till the
completion of works, the estimated selling expenses and the relevant expenses of taxation. On the
balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the
contract price and others without the contract price in the same inventory, and the amounts of the
inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison
with their corresponding costs.
4. Inventory System: Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1The asset is immediately sellable at its current condition per usual sales term applicable to the type
of assets to which it belongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevocable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities,
are classified as current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classified
as held for sale, in the operation and the preparation of the financial statements to be able to
differentiate the components alone in the company within:
1.This part of main business represents an independent or a main business area;
2.This part of the proposed disposal plans for a major business independent or a main business area;
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3 This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the
fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair
value, which doesn’t exceed the original book value of the fixed assets when the condition of holding
for sale is met. The impairment losses of the assets shall be regarded and recorded into the current
profits and losses if the original book value is more than the balance of the estimated net residual
value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed
assets held for sale, the company shall terminate the classification of held-for-sale and measure based
on the less one between the following amounts: (1) the amounts after adjusted for the assets or the
disposal group classified as the book value before the held-for-sale according to the originally
confirmed depreciation, amortization or impairment when supposed that have not classified as the
held-for-sale. (2) the returned amounts that can’t be re-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above
principles.
14.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has
control, joint control or significant influence over the long-term equity investments. The Company
invested does not have control, joint control or significant influence over the long-term equity
investments as financial assets available for sale or at fair value and the changes included financial
assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations
are common, related activities and the arrangement must be after sharing control participants agreed
to the decision-making. Significant influence is the Company s financial and operating policies of the
entity has the right to participate in decision-making, but can not control or with other parties joint
control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common
control is measured at the acquirer's share of the combination date book value of the acquiree's net
equity in the ultimate controller's consolidated financial statements. The difference between the cost
and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is
transferred by way of issuing equity instruments, the face value of the equity instruments issued is
recognised in share capital and the difference between the cost of the face value of the equity
instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is
insufficient. The cost of a long-term equity investment acquired through business combination not
under common control is the fair value of the assets transferred, liabilities incurred or assumed and
equity instruments issued. (For the equity of the combined party under common control obtained
step-by-step through multiple transactions and the business combination under common control
ultimately formed, the company should respectively dispose all the transactions if belong to the
package deal. For the package deal, all the transactions will be conducted the accounting treatment as
the deal with acquisition of control. For the non-package deal, the shares of the book value of the
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stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements of
the ultimate control party shall be as the initial investment cost of the long-term equity investment,
and the capital reserves shall be adjusted for the difference between the initial investment cost of
long-term equity investment and the sum of the book value of long-term equity investment before
merging and that of new consideration payment obtained on the merger date, or the retained earnings
shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held
before the merger date, the accounting treatment will not be conducted temporarily for other
comprehensive income accounted by equity method or confirmed for the financial assets available for
sale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not
under the same control through gaining the shares of the combined enterprise by multiple steps of
deals, it shall deal with it in the following two ways depending on that if it belongs to "a package
deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control
power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally held
by this enterprise accounted for by weighted equity method, the relevant other comprehensive income
shall not be accounted for temporarily. If the equity investment held originally can be classified as the
financial assets for sale, the difference between the fair value and the book value, and the variation in
the accumulative fair value of other comprehensive returns recorded originally will be transferred into
the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on
initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash
paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the
assets given away in the case of non-monetary asset exchange, or the fair value of the relevant
long-term equity investments. The cost of acquisition of a long-term equity investment acquired not
through business combination also includes all directly associated expenses, applicable taxes and fees,
and other necessary expenses. When the significant impact or the joint control but non-control on the
invested party can be implemented due to the additional investment, the long-term equity investment
cost is the sum of the fair value of the equity investment originally held and the new investment costs
based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments
significant influence are accounted for using the equity method. In addition, the Company's financial
statements using the cost method of accounting for long-term equity can exercise control over the
investee.
(1)Cost method of accounting for long-term equity investments
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Under the cost method, a long-term equity investment is measured at initial investment cost. Except
for cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized in
the period in accordance with the attributable share of cash dividends or profit distributions declared
by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds th
e investor's net identifiable assets of the fair share of the investment value, do not adjust the initial in
vestment cost of long-term equity investment; the initial investment cost is less than the investee uni
t share of identifiable net assets at fair value, the difference is recognized in profit or loss, while the
long-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s
interest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity
investment measured using the equity method is adjusted by the Company's share of the investee's net
profit and other comprehensive income, which is recognised as investment income and other
comprehensive income respectively. The carrying amount of an long-term equity investment
measured using the equity method is reduced by profit distribution or cash dividends announced by
the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive
income and profit distribution, which is adjusted to capital reserves。The net profit of the investee is
adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements
and hence the net profit and other comprehensive income of an investee which does not adopt
accounting policies or accounting period uniform with the Company is adjusted by the Company's
accounting policies and accounting period. The Company's share of unrealised profit or loss arising
from related party transactions between the Company and an associate or joint venture is deducted
from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted.
Where assets transferred to an associate or joint venture which form part of the Company's
investment in the investee but which does not enable the Company obtain control over the investee,
the cost of the additional investment acquired is measured at the fair value of assets transferred and
the difference between the cost of the additional investment and the book value of the assets
transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture
form an operation, the difference between the consideration received and the book value of the assets
transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture
form an operation, the transaction is accounted for in accordance with CAS 20 - Business
Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the
long-term equity investment and other net long-term investments in the investees. Where the
Company has obligation to share additional net loss of the investee, the estimatedshare of loss
recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of
loss of the investee when the investee generates net profit, the Company's unrecognised share of loss
is reduced by the Company's share of net profit and when the Company's unrecognised share or loss
is eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
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(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests
and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital
reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against
returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control,
the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies
in Note applies. For disposal of long-term equity investments in any situation other than the
fore-mentioned situation, the difference between the book value of the investment disposed and the
consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit
distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part
disposal of the investment, cumulative other comprehensive income relevant to the investment
recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant
assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit,
other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the
disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the
investment, cumulative other comprehensive income relevant to the investment recognised, as a result
of accounting by equity method or recognition and measurement principles applicable to financial
instruments, prior to the Company's acquisition of control over the investee is treated in the same
manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss
proportionate to the disposal. The investee's equity movement other than net profit, other
comprehensive income and profit distribution, as a result of accounting by equity method, is
reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company continues to have significant influence over the investee after the partial
disposal, the investment in measured by the equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment
in the investee and the Company ceases to have significant influence over the investee after the
partial disposal, the investment in measured in accordance with the recognition and measurement
principles applicable to financial instruments in the Company's separate financialstatements and the
difference between the fair value and the book value of the remaining investment at the date of loss of
control is recognised in profit or loss. Cumulative other comprehensive income relevant to the
investment recognised, as a result of accounting by equity method or recognition and measurement
principles applicable to financial instruments, prior to the Company's acquisition of control over the
investee is treated in the same manner that the investee disposes the relevant assets or liabilities on
the date of loss of control. The investee's equity movement other than net profit, other comprehensive
income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
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loss when control is lost. Where the remaining investment is measured by equity method, the
fore-mentioned other comprehensive income and other equity movement are recognised in profit or
loss proportionate to the disposal; Where the remaining investment is measured in accordance with
the recognition and measurement principles applicable to financial instruments, the fore-mentioned
other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial
disposal of investment in the investee,the remaining investment in the investee is measured in
accordance with the recognition and measurement principles applicable to financial instruments, the
difference between the fair value and the book value of the remaining investment at the date of loss of
joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive
income relevant to the investment recognised, as a result of accounting by equity method, prior to the
partial disposal is treated in the same manner that the investee disposes the relevant assets or
liabilities on the date of loss of joint control or significant influence. The investee's equity movement
other than net profit, other comprehensive income and profit distribution is reocgnised in profit or
loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple
disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single
transaction which result in the Company's loss of control over the investee. Each difference between
the consideration received and the book value of the investment disposed is recognised in other
comprehensive income and reclassified in full to profit or loss at the time when control over the
investee is lost.
15.Investment property
1. The Measurement Mode of Investment Property
The investment property of the company includes the leased land use rights, the leased buildings,
the land use rights held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation
by the service life average method, and the depreciation policy is the same with that of the fixed
assets. The land use rights held and prepared to transfer after appreciation in the investment property
shall be amortized by the line method, and the specific accounting policy is same with that of the
intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one
fiscal year. The fixed assets can be recognized when the following requirements are all met: (1) the
economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed
assets can be measured reliably.
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The fixed assets of the company include the houses and buildings, the decoration of the fixed assets,
the machinery equipment, the transportation equipment, the electronic instrument and other devices.
2. Initial Measurement and Subsequent Measurement of the Fixed Assets
The fixed assets shall be book kept as per the acquired actual cost, and the depreciation shall be
withdrawn from the subsequent month after the usable status reserved and achieved.
3．The method for depreciation
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
House and Building- Straight-line method
35 years 4% 2.74%
Production
House and Straight-line method
Building-Non- 40 years 4% 2.40%
Production
Decoration of Fixed
10 years 10.00%
assets Straight-line method
Machinery and Straight-line method
10-14 years 4% 9.60%-6.86%
equipment
Transportation Straight-line method
8 years 4% 12.00%
equipment
Electronic equipment 8 years 4% 12.00%
Straight-line method
Other equipment Straight-line method 8 years 4% 12.00%
4．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met: ① the
ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term.
② the tenant has the option to purchase the leasing assets, and the made purchase price is expected
to be far less than the fair value of the leasing assets in the implementation of the option. Thus, it
can be reasonably recognized that the tenant will implement the option on the lease date. ③ the
ownership of assets is not transferred, but the lease term shall be the most of the life of the lease
assets. ④ the least present value of the lease payment of the tenant and the least present value of the
lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease date
respectively. ⑤ the leasing assets have the special nature, and only the tenant can use if there is no
major modifications.
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(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under
finance leases shall be book kept according to the lower between the fair value of the leasing assets
and the least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be
withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own
fixed assets.
17.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measured
according to the actual cost occurred before the assets are built to achieve the expected usable
condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual
project costs when the expected usable condition achieved. For the expected usable condition
achieved while the final accounts for completed projects not handled yet, the projects shall be
transferred into the fixed assets as per the estimated value. After the final accounts for completed
projects handled, the original estimated value shall be adjusted as per the actual cost, but the original
withdrawn depreciation shall not be adjusted again.
18.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of
asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.
Other borrowing expenses are recognized as expenses according to the occurred amount, and
accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted by activities other than those necessary
to prepare the asset for its intended use or sale, when the interruption is for a continuous period of
more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the
current period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
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special borrowings actually occurred during the current period (including the amortization of discount
or premium recognized as per the effective interest method) minus the interest income acquired after
the borrowings deposit in bank or the investment income obtained from the temporary investment.
For the general borrowings for the purchase and construction of qualified assets, the capitalized
interest amount of the general borrowings shall be computed and recognized according to the
weighted average of accumulative asset expense beyond the expense of the special borrowings,
multiplying the capitalization rate of general borrowings.
19.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software,
which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the
intangible assets. For the finite service life of the intangible assets, the years of service life or the
quantity of service life formed and the number of similar measurement unit shall be estimated. If the
term of economic benefits of the intangible assets brought for the company is not able to be foreseen,
the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the
following factors to estimate the service life: ① the normal service life of products produced with the
assets, and the acquired information of the service life of similar assets. ② the estimation of the
current stage conditions and the future development trends in the aspects of technology and craft. ③
the demand of the products produced by the assets or the offered services in the market. ④ the
expectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the
relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term of the
assets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of
other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and
Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the
company, or the indefinite term of intangible assets recognized as the indefinite service life of
intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights,
but the indefinite service life of contract provision or legal provisions. ② unable to judge the term of
economic benefits brought by the intangible assets for the company after the integration of
information in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with
the indefinite service life, and the relevant department that uses the intangible assets, shall conduct
the basic review by the method from up to down, in order to evaluate the judgment criteria of the
indefinite service life if there is the change.
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(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangible
assets during the service life, and the line method shall be adopted to amortize for the intangible
assets unable to reliably recognize the expected implementation mode. The specific service life is as
follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall
make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance
sheet date, the corresponding impairment provision shall be withdrawn according to the difference
between the book value and the recoverable amount. The intangible assets with the indefinite service
life and without the usable condition shall be conducted the impairment test every year whether the
impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded
into the current profits and losses when occurring. The expenditure for internal research and
development project in the development stage shall be recognized as the intangible assets when the
following requirements are simultaneously met: (1) the completion of the intangible assets is
available for use or sale, and feasible in the technology. (2) the intention to complete the intangible
assets and use or sale. (3) the method for the economic benefits produced by the intangible assets,
including the evidence that shows there exists the market for the products generated from the
intangible assets or the intangible assets have the market. The intangible assets are used internally
which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability
to use or sell the intangible assets. (5) the expenditure belong to the development stage of the
intangible assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the
research stage and the development stage of the company is as follows: (1) the investigation stage
planned to obtain the new technology and knowledge, shall be recognized as the research stage,
which has the features of planning and exploration. (2) before the commercial manufacture and use,
the research results or other knowledge should be applied for the plan or design, in order to produce
the new or improved stages with substantial materials, devices and products, which should be
recognized as the development stage, and this stage has the features of pertinence and more
possibility to create the achievement.
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20.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity
investment, the investment property measured by the cost mode, the fixed assets and the projects
under construction if there is possible impairment on the balance sheet date. If there exists the
evidence shows that the long-term assets have the impairment, the impairment test should be
conducted, and the recoverable amount should be estimated. The impairment shall be confirmed if
there exists after the comparison of the estimated recoverable amount of the assets and its book
value, and if the assets impairment provision shall be withdrawn to recognize the corresponding
impairment losses. The estimation of the recoverable amount of assets should be confirmed
according to the higher one between the net amount of the fair value minus the disposal costs and
the present value of the cash flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by
the business combination and the intangible assets with the indefinite service life whether there
exists the impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future
accounting period.
21.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and
subsequent period (together of more than one year).
The long-term unamortized expense shall be book kept as per the actual amount occurred, and shall
be averagely amortize within the benefit period or the specified period. If the long-term unamortized
expense can’t make the benefits for the future accounting period, the amortized value of the
unamortized project shall all be transferred into the current profits and losses.
22.Remuneration
The employee benefits of the company include short-term employee benefits, post-employment
benefits, termination benefits and other long-term employee benefits.
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual
short-term compensation as the liability and record into the current profits and losses or the relevant
assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the
fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit
plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
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The contribution deposits that paid to the individual subject for the services provided by the staffs on
the balance sheet date during the accounting period, shall be recognized as the liability, and recorded
into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution
plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and
mutually consistent actuarial assumptions to make evaluation of demographic variables and financial
variables, measure and define the obligations arising from the benefit plan, and determine the period
of the relevant obligations. The company shall discount all the defined benefit plan obligations,
including the obligation within twelve months after the end of the annual report during the expected
services provision of employee. The discount rate adopted in discounting shall be recognized
according to the bonds matched with the defined benefit plan obligation term and the currency at the
balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present
value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are
recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of
the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper
limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of
assets refers to the present value of economic benefits obtained from the refund of the defined benefit
plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are
recognized as the service costs, the net interests on the net liabilities or the net assets of the defined
benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan
that re-measured. Of which, the service costs and the net interests on the net liabilities or the net
assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant
assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured shall be recorded into other comprehensive incomes, which should not be switched back
to the profits and losses during the subsequent accounting period, but the amount recognized from
other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the
early date and recorded into the current profits and losses: (1) when the company can’t withdraw the
demission welfare provided due to the rundown suggestion or the termination of labor relations plans.
(2) when the company recognizes the costs or the expenses related to the reorganization of demission
welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the
termination of labor relations plans at its side and when the costs relevant to the recombination of
dismission welfare payment, shall be recognized as the liabilities arising from the compensation due
to the termination of labor relations with staff and shall be recorded into the current profits and losses.
Then company shall reasonably predict and recognize the payroll payable arising from the dismission
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welfare. The dismission welfare, which is expected to finish the payment within twelve months after
the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation. The dismission welfare, which is expected to be unfinished for the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of
short-term compensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of
the defined contribution plan, the accounting treatment shall be made in accordance with the defined
contribution plan. Except for these, other long-term benefits shall be made the accounting treatment
according to the defined benefit plan, but the changes arising from the re-measurement of net
liabilities or net assets of other long-term employee benefits shall be recorded into the current profits
and losses or the relevant assets costs.
23. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of
the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the
expenditure required to settle the present obligation. There is the continuous scope for the required
expenditure, and the best estimate with the same possibilities resulted from various outcomes within
the scope shall be recognized as per the intermediate value. The best estimate should be recognize
according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters
involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are
matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are
compensated by the third party or other parties, the compensation amount should be separately
recognized as the assets when the receipt of the compensation amount is basically determined.
Meanwhile, the determined compensation amount shall not exceed the book value of the estimated
liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If
there is conclusive evidence that the book value cannot really reflect the current best estimate, the
adjustment shall be made for the book value in accordance with the current best estimate.
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24. Revenue
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met
simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the
continual management rights related to ownership no longer retained by the company and the
effective control of the sold goods no longer implemented, the reliable measurement of the revenue
amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the
relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the
reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits,
the reliable recognition of the completion schedule of transaction, and the reliable measurement of the
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
service incomes according to the completion percentage method and recognized the completion
schedule of the provided service transaction according to the proportion of the costs occurred
accounting for the total estimated costs. If the provided services transaction results cannot be reliably
estimated at the balance sheet date and the occurred service costs can be expected to have
compensation, the company shall recognize to provide the service revenue according to the occurred
service cost amount and transfer the service costs as per the same amount. If the occurred service
costs cannot be expected to have compensation, the occurred service costs shall be recorded into the
current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the
right to use assets meets the requirements of the possible inflow of the relevant economic benefits and
the reliable measurement of revenue amount. The interest income shall be calculated and determined
according to time and actual interest rate of the monetary capital of the company used by others, and
the royalty revenue shall be measured and determined in accordance with the charging time and
method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of
products in domestic market shall be recognized after the following requirements are met: The
company has agreed to deliver the goods to the purchaser under the contract and the revenue amount
of product sales has been determined, the payment for goods has been withdrawn or the payment
vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to
the products can be measured reliably. The revenue of the sale of products in foreign market shall be
recognized after the following requirements are met: The company has made customs clearance and
departure from port under the contract, the bill of landing has obtained and the revenue of the sale of
products has been recognized, the payment for goods has been withdrawn or the payment vouchers
has been obtained and related economic benefits are likely to inflow, and the costs related to the
products can be measured reliably.
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25.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other
ways, shall be recognized as the government subsidy related to the assets. The government grants
related to assets are recognized as the deferred income, equally distributed within the service life of
the relevant assets, and recorded into the current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government subsidy other than that related to income acquired by the company shall be
recognized as the government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy
shall be divided into that related to assets and that related to income, and the judgment basis is that:
① if the specific purpose of subsidy is stipulated in the government document, the review and
necessary change shall be made at the balance sheet date for the proportion of division according to
the relative proportion of assets expense amount and expense amount recorded in the budget of the
special item. ② only general expression is made in the government documents, and the government
subsidy related to income should be made for the non-particular items.
The government subsidy related to income that used for the compensation of the related expenses or
losses in subsequent period, shall be recognized as the deferred income and recorded into the current
profits and losses during the period of the confirmation of relevant expenses. The relevant expenses
or losses occurred for the purpose of compensation shall be directly recorded into the current profits
and losses.
3. Recognition Time of Government subsidy
If there is evidence shows that the company can meet the financial support policies and regulations at
the end of period, and the support funds can be expected to receive, the government grants shall be
recognized as per the receivable amount. In addition, the government subsidy should be recognized
when actually received.
4. Accounting Method of Government subsidy
The government subsidy shall be measured as per the received or receivable amount if the grants are
as the monetary assets. The government subsidy shall be measured as per the fair value if the grants
are as the non-monetary assets, and shall be measured as per the nominal amount if the fair value
cannot be reliably obtained.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax
basis, and the difference of the book value and the tax basis that no confirmation of assets and
liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference
can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
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For the deductible temporary difference, the deductible loss and the tax payment offset, the company
shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce
the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or
liabilities in the transaction shall not be recognized: (1) the transaction is not the business
combination. (2) the transaction doesn’t influence the accounting profits and the taxable incomes (or
the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the
following requirements are simultaneously met: (1) the temporary difference is possible to be
reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary
difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following
transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial
recognition of assets or liabilities arising from the transactions with the following features: this
transaction is not the business combination, and the transaction doesn’t influence the accounting
profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except
that the following requirements are simultaneously met: (1) the investment enterprise can control the
reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed
in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is
not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax
assets in the future, the book value of the deferred tax assets shall be deduced. Except that the
deferred tax assets and the reduction amount are recorded into the owner’s equity when the original
recognition, others shall be recorded into the current income tax expense. The book value of the
deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the
transactions and items directly recorded into the stockholders’ equity, shall be recorded into other
comprehensive incomes or the stockholders’ equity, and the book value of goodwill shall be adjusted
by the deferred income tax arising from the business combination, but the rest of the current income
tax and the deferred income tax expense or income shall be recorded into the current profits and
losses.
27.Lease
1. Accounting Treatment Method of Operating Lease
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When the company is as the tenant, the rental within the lease term shall be recorded into the relevant
assets cost or recognized as the current profits and losses as per the line method, and the initial direct
expense occurred shall be directly recorded into the current profit and loss. The contingent rental
shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current
profits and losses as per the line method, and the initial direct expense occurred shall be directly
recorded into the current profit and loss, except that the large amounts are capitalized and recorded
into the profit and loss by stages. The contingent rental shall be recorded into the current profit and
loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value
of leasing assets and the present value of minimum lease payment at the lease commencement date as
the book value of rented assets, recognize the minimum lease payment as the book value of the
long-term payables, and the undetermined fiancéexpense of the difference and the initial direct costs
occurred shall be recorded into the leasing asset value. During each lease period, the current financing
charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease
receivables and initial direct expense at the lease commencement date as the book value of finance
lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall
recognize the difference between the sums of minimum lease receivables, minimum lease receivables
and unguaranteed minus the sum of the present value as the unrealized financing income. During
each lease period, the current financing charges shall be measured and recognized by the effective
interest method.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
N/A
（2）Change of main accounting estimations
□Applicable √Not applicable
N/A
IV.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
Selling goods or providing taxable
VAT 17%
labor services
Business tax. Taxable income 5%
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City construction tax The taxable turnover 7%
Business income tax Taxable income 25%、15%
Business income tax Taxable income 25%、15%
2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company,
has been qualified as national high-tech enterprise since 2013 ,High-tech and enterprise certificate
No.: GF201344200044 ,The certificate is valid for three years, The enterprise income tax rate of this
year is 15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administra
tion of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Su
pporting the Development of New-type Display Device Industry (Cai Guan Shui (2012) No. 16), an
d the Notice of Printing and Issuing the Scope of Imported Materials of Enterprises Manufacturing
Colorful Light Filtering Coating and Polarizer Sheets and the List of the First Group of Enterprises
Enjoying Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen Shengbo Optoelectronic Te
chnology Co., Ltd. manufactured key materials and parts for the upstream industry of new-type disp
lay devices including colorful light filter coating and polarizer sheet that comply with the planning f
or independent development of domestic industries may enjoy the preferential policies of exemption
from import tariff for the import of raw materials and consumables for the purpose of self use and p
roduction that can not be produced domestically from June 1, 2012 and December 31, 2015. For the
concrete regulations on tax exemption, the Provisional Regulations on Taxation Policies for Importe
d Materials of Enterprises Manufacturing New-type Display Device Panels (Cai Guan Shui (2012)
No. 16).
V. Notes of consolidated financial statement
Unless otherwise stated, the meaning of "B/f", "C/f", "Current year", "Prior year" in the following
notes (incl. Notes to elements of the separate financial statements) is "1st January 2015", "31st
December 2015", "the year ended 31st December 2015", and "the year ended 31st December 2014"
respectively.
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 8,872.71 8,588.42
Bank deposit 750,353,139.33 1,101,274,000.66
Other monetary funds 1,952,859.49 488,972.20
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Total 752,314,871.53 1,101,771,561.28
Including : The total amount of deposit 31,258,353.11 3,552,067.53
abroad
Notes :As of December 31, 2016，The fixed-term deposit balance of money fund is RMB
3,655,995.93 , this part will not be treated as closing cash or closing cash equivalent in preparing cash
flow statement. Monetary unit is RMB yuan
2.Bill receivables
1. Classification Bill receivable
In RMB
Items
Year-end balance Year-beginning balance
Bank acceptance 18,841,745.16 43,412,635.19
Trade acceptance
Total 18,841,745.16 43,412,635.19
2. As of December 31, 2015，The company has no Bill receivable pledged.
3．Notes endorsement or discount and undue on balance sheet date
In RMB
Items Amount derecognizing at period –end Amount derecognizing at period-end
Bank acceptance 32,454,052.03
Trade acceptance
Total 32,454,052.03
4．Bill transferred to account receivable for the issuer is not able to execute the liability at the end of
period.
3. Account receivable
1.Classification account receivables.
Amount in year-end
Book balance Bad debt provision
Classification
Book value
Proportio Proportion(
Amount Amount
n(%) %)
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount in year-end
Book balance Bad debt provision
Classification
Book value
Proportio Proportion(
Amount Amount
n(%) %)
Accounts receivable of
individual significance and
subject to individual
impairment assessment 6,373,036.66 3.16 4,035,782.60 63.33 2,337,254.06
Accounts receivable subject to
impairment assessment by
credit risk characteristics of
a portfolio 189,029,540.68 93.74 9,776,480.20 5.17 179,253,060.48
Accounts receivable of
individual insignificance but
subject to individual
impairment assessment 6,259,765.85 3.10 5,083,708.34 81.21 1,176,057.51
Total 201,662,343.19 100.00 18,895,971.14 182,766,372.05
Amount in year-begin
Book balance Bad debt provision
Classification
Book value
Proportio Proportion(
Amount Amount
n(%) %)
Accounts receivable of
individual significance and
subject to individual
impairment assessment 4,698,879.38 2.73 3,198,621.70 68.07 1,500,257.68
Accounts receivable subject to
impairment assessment by
credit risk characteristics of
a portfolio 162,559,876.54 94.56 8,393,593.26 5.16 154,166,283.28
Accounts receivable of
individual insignificance but
subject to individual
impairment assessment 4,651,945.06 2.71 4,194,915.67 90.18 457,029.39
Total 171,910,700.98 100.00 15,787,130.63 156,123,570.35
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(1)Accounts receivable of individual significance and subject to individual impairment assessment.
Amount in year-end
Debtor
Account receivable Bad debt provision Proportion(%) Reason for allowance
It has been included in
Dongguan Fair LCD Co., the list of national courts
1,698,528.55 1,698,528.55 100.00
Ltd. dishonest debtor, unlikely
to recover.
Beyond the credit period
Guangdong Ruili Baolai
1,418,965.36 709,482.68 50.00 for a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period
Dongguan Yaxing
3,255,542.75 1,627,771.37 50.00 for a long time, uncertain
Semiconductor Co., Ltd.
recovered.
Total 6,373,036.66 4,035,782.60 --
（2）Account receivable on which bad debt provisions are provided on age basis in the group
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Within 1 year 188,008,826.83 9,400,441.34 5.00
1-2 years 269,320.69 26,932.07 10.00
2-3 years 132,948.96 39,884.69 30.00
Over 3 years 618,444.20 309,222.10 50.00
Total 189,029,540.68 9,776,480.20
2．Recognisation , recovery or reversal of allowance for bad debt：
（1）The account of allowance for bad debts recognised during the period is RMB3,899,615.51, The
amount collected or switches back amounting to 790,775.00.
（2）Bad debt provision accrual collected or switch back
Amount Allowance for
Name Recovery methods
receivable bad debts
Guangdong Ruili Baolai Technology 790,775.00
1,581,550.00 Cash and Bank acceptance
Co., Ltd.
Total 1,581,550.00 790,775.00
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3．The company has no account receivables written off this period.
4.The ending balance of receivable owed by the imputation of the top five parties
Balance in Proportion(%) Bad debt provision
Name Nature Aging
year-end
Client 1 Goods 67,995,405.77 Within 1 year 33.72 3,399,770.29
Client 2 Goods 31,812,267.30 Within 1 year 15.77 1,590,613.37
Client 3 Goods 15,437,524.43 Within 1 year 7.65 771,876.22
Client 4 Goods 8,562,394.21 Within 1 year 4.25 428,119.71
Client 5 Goods 7,315,138.55 Within 1 year 3.63 365,756.93
Total 131,122,730.26 65.02 6,556,136.52
4.Prepayments
1．Disclosure by age
（1）Disclosure by age
Balance in year-end Balance in year-begin
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year(including
5,027,361.20 64.01 24,681,972.11 91.16
1 year)
1-2 years 1,033,416.99 13.16 2,298,742.28 8.49
2-3 years 1,754,880.00 22.34 94,380.42 0.35
Over 3 years 38,160.00 0.49
Total 7,853,818.19 100.00 27,075,094.81 100.00
(2)Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled
in time
Claims unit Debt unit Balance in year-end Aging Reason of not clearing
Shenzhen Futian 1,754,880.00
Shenzhen Textile
District Housing and 2-3 years Not delivery of real estate
（Holdings）Co., Ltd.
Construction Bureau
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2.The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
First 1,754,880.00 22.35
Second 981,952.10 12.50
Third 438,461.55 5.58
Fourth 437,459.86 5.57
Fifth 219,687.79 2.80
Total 3,832,441.30 48.80
5.Interest receivable
1.Category of interest receivable
In RMB
Items Balance in year-end Balance in year-begin
Fixed deposit interest 13,357,311.32 5,520,035.21
Structure deposit interest 706,164.38
Total 13,357,311.32 6,226,199.59
6.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end
Book balance Bad debt provision
Classification
Amount Proporti Amount Withdrawal
Book value
on(%) proportion
(%)
Other accounts receivable of
individual significance and
11,981,464.60 19.67 11,981,464.60 100.00
subject to individual
impairment assessment
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount in year-end
Book balance Bad debt provision
Classification
Amount Proporti Amount Withdrawal
Book value
on(%) proportion
(%)
Other accounts receivable
subject to impairment
48,425,735.21 79.49 3,292,063.11 6.80 45,133,672.10
assessment by credit risk
characteristics of a portfolio
Other accounts receivable of
individual insignificance but
511,820.77 0.84 511,820.77 100.00
subject to individual
impairment assessment
Total 60,919,020.58 100.00 15,785,348.48 45,133,672.10
Amount in year-begin
Book balance Bad debt provision
Classification
Book value
Amount Proport Amount Withdrawal
ion(%) proportion (%)
Other accounts receivable of
individual significance and
11,981,464.60 20.88 11,981,464.60 100.00
subject to individual
impairment assessment
Other accounts receivable
subject to impairment
44,880,159.19 78.23 3,036,781.80 6.77 41,843,377.39
assessment by credit risk
characteristics of a portfolio
Other accounts receivable of
individual insignificance but
511,820.77 0.89 511,820.77 100.00
subject to individual
impairment assessment
Total 57,373,444.56 100.00 15,530,067.17 41,843,377.39
Other receivable accounts with large amount and were provided had debt provisions individually at
end of period.
Debtor Amount in year-end
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Withdrawal proportion
Other account receivable Bad debt provision Reason for allowance
(%)
Jiangxi Xuanli String No executable property,
11,389,044.60 11,389,044.60 100.00
Co., Ltd. unlikely to recover.
Shenzhen Tianlong Has been
Induatry& Trade Co., 592,420.00 592,420.00 100.00 conceled,unlikely to
Ltd. recover
Total 11,981,464.60 11,981,464.60 --
(2)Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within 1 year 44,339,566.81 2,216,978.35 5.00
1-2 years 2,237,253.61 223,725.36 10.00
2-3 years 365,489.98 109,646.99 30.00
Over 3 years 1,483,424.81 741,712.41 50.00
Total 48,425,735.21 3,292,063.11
2.The current amount of provision for bad debts is RMB255,281.31, no withdraw or return for bad
debts.
3．The company has no other receivables written off this period.
4.Other accounts receivable classified by the nature of accounts
Category
Year-end balance Year-beginning balance
The equity transfer 2,276,015.00
Export rebate 37,916,465.75 37,329,677.22
Unit account 16,318,999.87 14,476,263.97
Deposit 2,024,236.32 2,074,647.36
Reserve fund and staff loans 968,214.01 1,058,737.57
Other 1,415,089.63 2,434,118.44
Total 60,919,020.58 57,373,444.56
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
5.Top 5 of the closing balance of the other accounts receivable colleted according to the arrears
party
Proportion of Bad debt
the total year provision
Name Nature Closing balance Aging end balance of
the accounts Closing balance
receivable(%)
First Export rebate 37,916,465.75 Within 1 year 62.25 1,895,823.29
Second Unit account 11,389,044.60 Over 3 years 18.69 11,389.044.60
1,800,000.00 Within 1 year 2.95 90,000.00
Third
Unit account 1,800,000.00 1-2 years 2.95 180,000.00
Fourth Equity transfer 2,276,015.00 Within 1 year 3.74 113,800.75
Fifth Deposit 980,461.06 Over 3 years 1.61 490,230.53
Total 56,161,986.41 92.19 14,158,899.17
7.Inventories
（1）Inventories types
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for bad Book value Book balance Provision for bad Book value
debts debts
Raw materials 150,409,810.60 14,406,278.95 136,003,531.65 96,253,606.72 18,042,269.08 78,211,337.64
Processing
6,871,382.66 493,094.77 6,378,287.89 6,209,041.89 6,209,041.89
products
Finished product 128,415,576.27 30,161,550.92 98,254,025.35 116,534,286.34 25,965,053.01 90,569,233.33
Semi-finished
90,791,967.01 22,652,767.02 68,139,199.99 76,759,022.66 21,506,818.01 55,252,204.65
product
Turnover
133,102.72 133,102.72
materials
Designated
processing 284,202.01 284,202.01
material
134
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Total 376,488,736.54 67,713,691.66 308,775,044.88 296,173,262.34 65,514,140.10 230,659,122.24
（2）Inventory Impairment provision
Increased in current period Decreased in current period
Year-beginning
Items Year-end balance
balance Provision Other Transferred back Other
Raw materials 18,042,269.08 5,678,191.34 9,314,181.47 14,406,278.95
Finished product 25,965,053.01 25,463,253.58 21,266,755.67 30,161,550.92
Semi-finished
21,506,818.01 17,179,570.89 16,033,621.88 22,652,767.02
product
Processing
493,094.77 493,094.77
products
Total 65,514,140.10 48,814,110.58 46,614,559.02 67,713,691.66
8.Other current assets
Items
Year-end balance Year-beginning balance
Structural Deposit 460,000,000.00
After the deduction of input VAT 53,553,675.47 61,748,415.41
Total 513,553,675.47 61,748,415.41
9.Available-for-sale financial assets
(1)Available-for-sale financial assets
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity 124,282,285.6
79,931,512.57 36,689,988.51 43,241,524.06 36,689,988.51 87,592,297.11
instruments 2
Measured by fair value 10,054,476.60 10,054,476.60 52,605,249.65 52,605,249.65
Measured by cost 69,877,035.97 36,689,988.51 33,187,047.46 71,677,035.97 36,689,988.51 34,987,047.46
124,282,285.6
Total 79,931,512.57 36,689,988.51 43,241,524.06 36,689,988.51 87,592,297.11
2
135
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
(2)Available-for-sale financial assets measured by fair value at the period-end
Items Cost Fair value
Available-for-sale financial instrument 8,940,598.31 10,054,476.60
Fawer（000030） 8,940,598.31 10,054,476.60
Total 8,940,598.31 10,054,476.60
(2)Available-for-sale financial assets measured by cost at the period-end
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increased Decreased Period-end among the reporting
in in
investees period
Shenzhen
Jintian
Industry
（Group） 14,831,68 14,831,68 14,831,68 14,831,68
Co., Ltd. 1.50 1.50 1.50 1.50 3.68
Shenzhen
Jiafeng
Textile 16,800,00 16,800,00 16,800,00 16,800,00
Co., ltd. 0.00 0.00 0.00 0.00 10.80
Shenzhen
Guanhua
Prnting &
dyeing 5,491,288 5,491,288 5,058,307 5,058,307
.71 .71 .01 .01 45.00
Co., Ltd.
Shenzhen
Union
Developm
ent Group 2,600,000 2,600,000 156,000.0
.00 .00 2.87 0
Co., Ltd
Shenzhen 160,000.0 160,000.0
Xiangjiang 0 0 20.00 84,587.22
136
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Trade Co.,
Ltd.
Shenzhen
Xinfang
Knitting 524,000.0 524,000.0
0 0 20.00 54,000.00
Co., Ltd.
Shenzhen
Dailisi
Knitting 2,559,856 2,559,856 788,870.0
.26 .26 30.00 0
Co., Ltd.
Anhui
Huapeng
Textile 25,410,20 25,410,20 1,800,000
9.50 9.50 50.00 .00
Co., Ltd.
Shenzhen
South
Textile 1,500,000 1,500,000 658,819.4
Co., Ltd. .00 .00 9.84 0
Shenzhen
Tongyi
Silk Co., 1,800,000 1,800,000 685,344.9
Ltd. .00 .00 5
71,677,03 1,800,000 69,877,03 36,689,98 36,689,98 4,227,621
Total
5.97 .00 5.97 8.51 8.51 .57
In the reporting period, 18% Equity of Tongyi with assessed value RMB 45.5203 million was
transferred to Shenzhen Fenghuirun Investment Co., Ltd; Shenzhen Dailisi Knitting Co., Ltd. and Anhui
Huapeng Textile Co., Ltd. provided foreign contract in the current period.
(4)Changes of the impairment of the available-for-sale financial assets during the reporting period
Available for sale equity Available for sale
Category Total
instruments debts instruments
Impairment amount at the beginning 37,301,142.97 37,301,142.97
period
Current provision
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Available for sale equity Available for sale
Category Total
instruments debts instruments
Including: Transferred from other
comprehensive income
Decreased of this period
Including:transferred from the 611,154.46 611,154.46
increased fair value
Impairment amount at the end of
period 36,689,988.51 36,689,988.51
Fawer Shares （000030）the company held impairment loss at the last period of RMB
2,947,341.67, the current value raised, the reversal of impairment losses of RMB 611,154.46
through equity.
138
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
10.Long-term equity investment
(1)Long-term equity investment
Increase/decrease
Closing
Adjustme
Cash Withdraw balance
Gains/los nt of
Opening Add Investme Changes bonus or al of Closing of
Investees s of other
balance investmen nt of other profits impairme Other balance impairme
Investme comprehe
t decreased equity announce nt nt
nt nsive
d to issue provision provision
income
I. Joint venture
Shenzhen
Haohao
Property
Leasing 3,762,40 635,434.1 4,397,840
6.73 5 .88
Co., Ltd.
Shenzhen
Xieli
Automobil 3,675,12 386,836.5 4,061,958 266,654.9
2.44 2 .96 9
e Co., Ltd.
7,437,52 1,022,270 8,459,799 266,654.9
Subtotal
9.17 .67 .84 9
2. Affiliated Company
Shenzhen
Changlianf
a Printing
& dyeing 1,814,15 1,871,377
8.78 57,218.31 .09
Company
Jordan
Garment 3,262,74 -76,209.2 197,479.0 3,384,014
4.69 3 3 .49
Factory
Hongkong
Yehui 8,547,27 1,427,762 545,386.5 9,430,732
9.68 .45 1,077.00 0 .63
Internation
139
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al Co.,
Ltd.
13,624,1 1,408,771 198,556.0 545,386.5 14,686,12
Subtotal
83.15 .53 3 0 4.21
21,061,7 2,431,042 198,556.0 545,386.5 23,145,92 266,654.9
Total
12.32 .20 3 0 4.05 9
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector.
140
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
11.Investment real estate
（1）Measured by the cost of investment in real estate
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
254,042,931.46 254,042,931.46
period-beginning
2.Increase in the current
60,000.00 60,000.00
period
3.Decrease in the current
1,817,038.92 1,817,038.92
period
4 Year-end balance 252,285,892.54 252,285,892.54
II.Total accumulated
depreciation accumulated
amortization
1. Year-begin balance 113,137,656.01 113,137,656.01
2.Increase in the current
6,575,312.40 6,575,312.40
period
(1).Provision or
6,575,312.40 6,575,312.40
amortization
3.Decrease in the current
1,817,038.92 1,817,038.92
period
4 Year-end balance 117,895,929.49 117,895,929.49
4. Balance at period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
3.Decrease in the
current period
4. Balance at period-end
IV.Book value 134,389,963.05 134,389,963.05
1.Book value at period 140,905,275.45 140,905,275.45
141
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
-end
2.Book value at
140,905,275.45 140,905,275.45
period-beginning
12. Fixed assets
（1）Fixed assets
Electronic
House and Machinery Transportation
Items Equipment and Total
buildings equipment equipment
other
I.Original book value
1. Year-beginning 477,461,993.94 633,688,396.11 3,691,157.72 18,266,876.86 1,133,108,424.63
balance
2. Increased at this 18,163,742.62 19,105,781.35 1,630,732.31 38,900,256.28
period
（1）Purchase 903,094.00 3,571,969.74 1,630,732.31 6,105,796.05
（2） 17,260,648.62 15,533,811.61 32,794,460.23
Transferredfromconstruct
3. Decreased at 5,573,724.08 622,103.56 434,356.71 6,630,184.35
ion in -progress
this period
（1）Disposal or scrap 5,573,724.08 622,103.56 434,356.71 6,630,184.35
4 Year-end balance 490,052,012.48 652,172,073.90 3,691,157.72 19,463,252.46 1,165,378,496.56
II. Accumulated
depreciation
1. Year-beginning 76,531,202.95 217,981,340.78 2,363,208.73 11,126,071.22 308,001,823.68
balance
2. Increased at this 13,946,557.06 58,087,101.46 365,764.49 1,324,654.47 73,724,077.48
period
（1）Provision 13,946,557.06 58,087,101.46 365,764.49 1,324,654.47 73,724,077.48
3.Decreased at this 5,573,724.08 444,802.17 348,365.51 6,366,891.76
period
（1）Disposal or scrap 5,573,724.08 444,802.17 348,365.51 6,366,891.76
4. Year-end balance 84,904,035.93 275,623,640.07 2,728,973.22 12,102,360.18 375,359,009.40
III. Impairment
allowance
1. Year-beginning 235,233.62 235,233.62
balance
2. Increased at this
period
3. Decreased at this 235,233.62 235,233.62
period
4. Year-end balance
IV.Book value
142
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Electronic
House and Machinery Transportation
Items Equipment and Total
buildings equipment equipment
other
1. Closing book value 405,147,976.55 376,548,433.83 962,184.50 7,360,892.28 790,019,487.16
2. Book value at year 400,930,790.99 415,707,055.33 1,092,715.37 7,140,805.64 824,871,367.33
beginning
(2)Fixed assets with un-completed property certificates
Items Book Value Reasons for un-completed certificate
TFT-LCD polarizing film project phase 1 fixed Need to improve the relevant accreditation
288,049,723.38 information
assets of houses and buildings
Notes
Current depreciation is RMB73,724,077.48 .The issue of fixed assets transferred from
construction in progress original price is RMB32,794,460.23.
2.Fixed assets with un-completed property certificates
Items Book Value Reasons for un-completed
certificate
TFT-LCD polarizing film project phase 1 fixed Need to improve the relevant
assets of houses and buildings 296,998,079.44 accreditation information
13.Project under construction
（1）Project under construction
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
TFT-LCD
36,212,078.79 36,212,078.79 32,436,160.45 32,436,160.45
polarizing film II
project
Guanhua
39,004,527.58 39,004,527.58 31,482,502.19 31,482,502.19
Building project
143
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Research and
development
14,745,915.59 14,745,915.59
center expansion
project
Other 586,980.33 586,980.33 1,157,571.11 1,157,571.11
Total 75,803,586.70 75,803,586.70 79,822,149.34 79,822,149.34
（2）Changes of significant construction in progress
144
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Including： Source of fund
Including： Current
Capitalizat
The year amount of Capitalizat
Amount at Transferre ion of
Increase at Other Balance in Proportion Progress of amount of capitalizati ion of
Name Budget year d to fixed interest
this period decrease year-end (%) work capitalizati on of interest
beginning assets accumulat
on of interest ratio（%)
ed balance
interest
TFT-LCD Collect and Self-
polarizing 1,470.93m 32,436,160 3,775,918. 36,212,0
2% 2%
film II illion .45 34 78.79
project
32,436,160 3,775,918. 36,212,0
Total
.45 34 78.79
145
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
14.Intangible assets
（1）List of intangible assets
Items Land use right Proprietary technology Software Total
I. Original price
1.Opening
48,765,130.50 11,825,200.00 1,876,780.00 62,467,110.50
balance
2.Increased
amount of the 61,500.00 61,500.00
period
61,500.00 61,500.00
(1) Purchase
3.Decreased at
thisperiod
4. Balance at
48,765,130.50 11,825,200.00 1,938,280.00 62,528,610.50
period-end
II.Accumulated
amortization
1. Balance at
8,417,706.45 11,825,200.00 452,801.16 20,695,707.61
period-beginning
2. Increase in the
965,603.28 240,363.27 1,205,966.55
current period
(1) Withdrawal 965,603.28 240,363.27 1,205,966.55
3.Decreased
amount of the
period
4. Balance at
9,383,309.73 11,825,200.00 693,164.43 21,901,674.16
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
3.Decreased
amount of the
period
4. Balance at
146
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
period-end
IV. Book value
1.Book value at
39,381,820.77 1,245,115.57 40,626,936.34
period -end
2.Book value at
40,347,424.05 1,423,978.84 41,771,402.89
period-beginning
15.Goodwill
1．General information
Increased at this .Decreased at
Investee Balance in year-begin Balance in year-end
period this period
Shenzhen Beauty Century
Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and
Export Co., Ltd. 82,246.61 82,246.61
Shenzhen Shengbo
Optoelectronic Technology Co.,
Ltd 9,614,758.55 9,614,758.55
Total
11,864,346.37 11,864,346.37
（2）Impairment allowance
Increased at this .Decreased at
Investee Balance in year-begin Balance in year-end
period this period
Shenzhen Beauty Century
Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and
Export Co., Ltd. 82,246.61 82,246.61
Shenzhen Shengbo
Optoelectronic Technology Co.,
Ltd 9,614,758.55 9,614,758.55
Total
2,249,587.82 9,614,758.55 11,864,346.37
Notes ：
The company has purchased 52.05% stock equity of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. In
June 2009, and has paid the consideration with the difference RMB9,614,758.55 after the shares of the fair value
147
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
of the identifiable net assets deducted, which shall be recorded into the goodwill. the company has made the
impairment test for the assets group combination including the goodwill, After testing, the goodwill impairment
provision is RMB 9,614,758.55.
16. Long term amortize expenses
Amortized expenses
Increase in this
Items Balance in year-begin Other loss Balance in year-end
period
Renovation fee 245,050.54 350,688.00 246,709.20 349,029.34
Other 315,826.52 14,616.00 45,930.36 284,512.16
Total 560,877.06 365,304.00 292,639.56 633,541.50
17. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets depreciation
7,334,802.71 1,833,700.67 8,661,780.26 2,165,445.08
reserves
Unattained internal sales
2,858,879.80 428,831.98 2,947,994.35 442,199.15
profits
Total 10,193,682.51 2,262,532.65 11,609,774.61 2,607,644.23
（2）Details of the un-recognized deferred income tax liabilities
In RMB
Balance in year-end Balance in year-begin
Items
Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax
or Taxable Difference liabilities or Taxable Difference liabilities
Stock equity disposition
of the temporary
42,291,900.69 10,572,975.17
taxable difference and
the taxable income
Changes in fair value of 1,113,878.29 278,469.57 42,225,680.94 10,556,420.24
148
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
financial assets
available for sale
Total 43,405,778.98 10,851,444.74 42,225,680.94 10,556,420.24
(3)Details of un-recognized deferred income tax assets
Items Balance in year-end Balance in year-begin
Deductible temporary difference 85,512,740.17 81,167,910.31
Deductible loss 495,605,796.60 411,615,401.60
Total 581,118,536.77 492,783,311.91
Due to the uncertainty which exists in whether sufficient taxable income can be obtained in the future ,
therefore, delay-tax capital has not been confirmed.
（4）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Year Balance in year-end Balance in year-begin Remark
2017 134,292,559.16 134,292,559.16
2018 129,226,944.33 129,226,944.33
2019 148,095,898.11 148,095,898.11
2020 83,990,395.00
Total 495,605,796.60 411,615,401.60 --
18. Short-term loan
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beginning
Credit loans 53,866,521.87 24,676,594.72
Total 53,866,521.87 24,676,594.72
19.Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 221,732,534.76 147,154,864.20
149
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
1-2 years 339,044.59 364,150.98
2-3 years 64,917.00 281,468.35
3-4 years 187,643.43 48,196.00
4-5 years 38,046.00 33,784.50
Over 5 years 5,166,622.82 5,144,218.32
Total 227,528,808.60 153,026,682.35
（2）Significant accounts payable that aged over one year
The reason for not repaid or carried fo
Items Balance in year-end Age
rward
Will Taco Corporation 5,089,267.83 Over 5 years Quality dissension
Total 5,089,267.83
20. Advance account
（1） Advance account
Items Balance in year-end Balance in year-begin
Within 1 year 27,505,005.53 40,457,864.19
1-2 years 45,161.00 27,012.70
2-3 years 10,224.00 968.40
3-4 years 9,072.57
4-5 years 50.76
Over 5 years 639,024.58 640,541.38
Total 28,199,415.11 41,135,510.00
21.Payable Employee wage
（1）Payable Employee wage
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term employee 37,736,705.46 121,924,801.52 125,103,684.58 34,557,822.40
benefits
150
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
II. Post-employment 9,307,301.55 8,557,301.55 750,000.00
benefits
III. Termination benefit 175,175.00 175,175.00
Total 37,736,705.46 131,407,278.07 133,836,161.13 35,307,822.40
（2）Short-term remuneration
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
107,369,504.10 111,363,785.59
1.Wages, bonuses,
36,466,410.58 32,472,129.09
allowances and subsidies
2.Employee welfare 5,323,050.11 5,323,050.11
3. Social insurance 2,457,634.32 2,457,634.32
premiums
Including：Medical 1,899,806.38 1,899,806.38
insurance
Work injury insurance 169,446.03 169,446.03
Maternity insurance 388,381.91 388,381.91
4. Public reserves for 4,452,911.39 3,932,911.39 520,000.00
housing
5.Union funds and staff 1,270,294.88 2,321,701.60 2,026,303.17 1,565,693.31
education fee
Total 37,736,705.46 121,924,801.52 125,103,684.58 34,557,822.40
（3）Defined contribution plans listed
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age 7,030,420.62 7,030,420.62
insurance premiums
2.Unemployment 545,800.73 545,800.73
insurance
3. Annuity payment 1,731,080.20 981,080.20
Total 9,307,301.55 8,557,301.55
151
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
22.Tax Payable
Items At end of term At beginning of term
VAT 135,460.12 475,624.79
Business Tax 510,707.45 658,958.83
City Construction tax 31,836.84 58,577.68
Enterprise Income tax 12,570,466.83 6,320,905.10
Individual Income tax 480,334.74 386,166.15
House property Tax 750,607.19 750,603.03
Education surcharge 22,964.43 85,549.33
Other 180,265.49 176,209.64
Total 14,682,643.09 8,912,594.55
23.Interest Payable
（.1）Interest Payable
Items At end of term At beginning of term
Interest on long-term borrowings payable 39,000,625.75 32,806,459.08
Interest on short-term borrowings 88,262.21 230,759.60
Total 39,088,887.96 33,037,218.68
24.Other payable
（1）Disclosure by nature
Items At end of term At beginning of term
Engineering Equipment fund 59,222,758.80 44,921,304.26
Unit account 24,819,916.41 38,703,210.28
Deposit 19,151,806.04 11,209,176.63
Drawing expenses 2,879,640.37 2,872,752.99
Other 19,701,602.18 14,948,418.90
152
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Total 125,775,723.80 112,654,863.06
25.Non-currentliabilitiesdue within 1 year
Items At end of term At beginning of term
Long-term borrowings due with in 1year 40,000,000.00 75,346,136.30
Total 40,000,000.00 75,346,136.30
The long-term borrowings at the end of period are the borrowings extended to the Company by Pingan
Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd.
26.Long-term borrowings
（1）Long-term term borrowings
In rmb
Items At end of term At beginning of term
Credit borrowings 120,000,000.00 124,653,863.70
Total 120,000,000.00 124,653,863.70
The long-term borrowings at the end of period are the borrowings enxtended to the Company by Pingan
Bank.Shenzhen Jiangsu Building Branch. Entrusted by Shenzhen Shenchao Technology Investment Co.,Ltd.
27.Deferredincome
Balance in Increase at this Decrease at this
Items Balance in year-end
year-begin period period
Govemment Subsidy 66,546,079.96 45,202,608.00 12,224,522.38 99,524,165.58
Total 66,546,079.96 45,202,608.00 12,224,522.38 99,524,165.58
Details of govemment subsidy：
The
Balance in New grants
Items non-operating Balance in Income related to
amount of this Other changed
year-begin revenue amount year-end assets
period
of this period
Textile special
1,142,857.16 142,857.14 1,000,000.02 1,142,857.16 Related to assets
funds
High-tech
Industrialization 1,000,000.00 200,000.00 800,000.00 900,000.00 Related to assets
demonstration
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
projects
National grant
fundsfor new flat
5,000,000.00 1,000,000.00 4,000,000.00 4,500,000.00 Related to assets
panel display
industry
Borrowing
1,209,722.08 241,944.44 967,777.64 1,088,749.87 Related to assets
discount
Government R &
7,909,980.00 7,909,980.00 3,954,990.00 Related to income
D subsidies
Grant funds for
TFT-LCD
9,533,333.34 1,300,000.00 8,233,333.34 8,883,333.34 Related to assets
polarizer industry
project
Grant funds for
TFT-LCD
polarizer narrow 4,000,000.00 500,000.00 3,500,000.00 3,750,000.00 Related to assets
line (line 5)
project
Purchase of
imported
1,377,377.58 175,090.20 1,202,287.38 1,289,832.48 Related to assets
equipment and
technology
Innovation and
venture capital
400,000.00 50,000.00 350,000.00 375,000.00 Related to assets
for TFT-LCD
polarier project
Shenzzhen
Engineering
laboratory
polarizing 500,000.00 37,500.00 462,500.00 500,000.00 Related to assets
material and
technical
engineering
Shenzhen
polarizingmateria
5,000,000.00 375,000.00 4,625,000.00 5,000,000.00 Related to assets
l and technical
engineering
154
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Capital funding
for Technology 3,000,000.00 225,000.00 2,775,000.00 3,000,000.00 Related to assets
Center
Subsidy funds to
support the
introduction of a 115,104.80 14,388.10 100,716.70 107,910.72 Related to assets
dvanced technolo
gy
Grant funds for
TFT-LCD
polarizer narrow 15,000,000.00 15,000,000.00 15,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 10,000,000.00 10,000,000.00 10,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 500,000.00 500,000.00 500,000.00 Related to assets
line (line 6)
project
Imported
equipment and
technology of 857,705.00 857,705.00 857,705.00 Related to assets
discount interest
funds
key technology
research and deve
lopment projects
5,000,000.00 5,000,000.00 5,000,000.00 Related to assets
of optical
compensation
film for polarizer
Strategic
industries
Development
20,000,000.00 20,000,000.00 18,152.00 Related to assets
fund of
Guangdong
Province
155
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Grants of
Purchase
equipment of
20,000,000.00 20,000,000.00 Related to assets
TFT-LCD
polarizing film
phase II project
Energy saving
transformation 202,608.00 52,762.50 149,845.50 Related to assets
grant funds
Total 66,546,079.96 45,202,608.00 12,224,522.38 99,524,165.58 65,926,431.57 --
Notes：
（1）According to the "Notice on National Development and Reform Commission to the General Office of the
textile project management of the special funds" (Faigaiban [2006]2841), on December 22, 2006, the Company
received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14
years as asset depreciation period for amortization with the corresponding equipment in current period. The
amortization in accordance with the corresponding equipment, The non-operating income in current period is
RMB142,857.14, the ending balance of uncompleted amortization is RMB 1,000,000.02 .
(2) According to the document of Shenzhen Municipal Development and Reform Commission 【2009】 No. 416
that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet
Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and
Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform
Projects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commission
high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen City
Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our
company will use 10 years as asset depreciation period for amortization in current period. The non-operating
income in current period is RMB 200,000.00 and the balance amount of unfinished final amortization is RMB
800,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of
the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidies
RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display
Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for
TFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State
Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation
period for amortization. The non-operating income in current period is RMB100,000.00, the balance amount of
unfinished final amortization is RMB 4,000,000.00;
（4）On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of
RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocated by Shenzhen Bureau of Finance for phase-II
alteration project. Our company will use 10 years as asset depreciation period for amortization in current
period.The non-operating income in current period is RMB 241,944.44 and the balance amount of unfinished final
156
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
amortization is RMB967,777.64.
（5）The Company received R&D subsidy of RMB39,549,900.00 from the government according to Shen Cai
Jian (2010) No. 101 Document - Circular of Plan for Use of Special Funds for the 14th Group of Significant
High-tech Projects in 2010. The Company plans to invest these funds in R&D in five years from 2011. The
non-operating income in current period is RMB 7,909,980.00, The final allocation has been completed。
（6）In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform
Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industry
issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Development
and Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD of
Shengbo Optoelectronic Company into the special plan for strategic transformation and industrialization of color
TV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company
for the research and development in the process of the project of industrialization and the purchase of required
software and hardware equipment. On June 2012 and September 2013, the company received the national grants
of RMB 10,000,000.00.. According to the Notice of Issuing the Governmental Investment Plan for 2011
Regarding Demonstration Project of High-tech Industrialization Including Specialized Services Such As Disaster
Recovery of Financial Information System issued by Shenzhen Development and Reform Commission (Shen Fa
Gai (2012) No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization of
polarizer sheet for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period for
amortization in current period.The non-operating income in current period is RMB1,300,000.00. and the balance
amount of unfinished final amortization is RMB8,233,333.34.
（7）According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological,
Internet, New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No.
1782), the Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project
of polarizer sheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB5,000,000.00 and the balance amount of unfinished final amortization is RMB3,500,000.00.
（8）On October 2013, The company received the grants for the purchase of imported equipment and technology
in 2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to the
depreciation period of relevant assets.The non-operating income in current period is RMB175,090.20 and the
balance amount of unfinished final amortization is RMB1,202,287.38.
（9）On December 2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching
funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation
period of relevant assets. The non-operating income in current period is RMB50,000.00 and the balance amount of
unfinished final amortization is RMB350,000.00.
（10）On December 2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching
funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation
period of relevant assets. The non-operating income in current period is RMB37,500.00 and the balance amount of
unfinished final amortization is RMB462,500.00.
157
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（11）According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. for
Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012)
No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be
established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As
approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the
fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012
(new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises
with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241),
the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipment
and improving existing technological equipment and test conditions. The fund gap will be filled by the Company
through raising funds by itself. the Company planned to amortize the subsidy over 10 years according to the
depreciation period of relevant assets. The non-operating income in current period is RMB375,000.00 and the
balance amount of unfinished final amortization is RMB4,625,000.00.
（12）According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including
Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and
Development Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center of
Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipal R&D center. In December
2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center.
the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.
The non-operating income in current period is RMB225,000.00 and the balance amount of unfinished final
amortization is RMB2,775,000.00.
(13)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB
143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB14,388.10 and the balance amount of unfinished final amortization is RMB100,716.70.
（14）According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen
Shengbo Optoelectronic Technology Co., Ltd. application for local matching funds of TFT-LCD polarizing film II
project (Line 6) " (Shenzhen DRC [2013]No. 1771), the company obtained TFT-LCD polarizing film II project
(line 6) local matching funds of RMB 15,000,000.00 in April 2014.The fund gap will be filled by the Company
through raising funds by itself. The subsidy will be amortized over the depreciation period from the day when
relevant assets get ready for intended use.
（15）According to "National Development and Reform Commission issued on industrial transformation and
upgrading projects (2nd industrial restructuring) notify the central budget for 2014 investment plan" (NDRC
Investment [2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB
10,000,000.00 in December 2014.The fund gap will be filled by the Company through raising funds by itself. The
subsidy will be amortized over the depreciation period from the day when relevant assets get ready for intended
use.
（16）In December 2014, the company received innovation venture capital (matching funding category) for Ping
Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB
500,000.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be
amortized over the depreciation period from the day when relevant assets get ready for intended use;
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（17）On September 2014，The company received a discount of imported equipment and technology funds of
RMB 857,705.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will be
amortized over the depreciation period from the day when relevant assets get ready for intended use.
(18) On Jan. 2015, the company received RMB 5 million of grants for key technology research and development
projects of optical compensation film for polarizer from Shenzhen Scientific and Technological Innovation
Committee. The company will defer income share transferred in the current profit and loss on the basis of
depreciation life as of the date of the predetermined workability state the related assets reach.
19. According to “Reply on Congregating Development in Emerging Industrial Area Strategic Pilot Implement
Scheme of Guangdong Province ”(Reform and Development Office High-Tech [2013] No.2552, the Company
received 20 million RMB of the pilot project fund( period II project of TFT-LCD polarizer).The company will
defer income share transferred in the current profit and loss on the basis of depreciation life as of the date of the
predetermined workability state the related assets reach.
20. According to Reform and Development Commission of Shenzhen Municipality sending the notice of “Reply
of National Reform and Development Office on Investing in Petrifaction and Medicine Project within Central
Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and Development Commission of
Shenzhen Municipality [2013]No.1449) , the Company received 20 million RMB of new production line of
TFT-LCD polarizer project period II and equipment purchase subsidy in August 2015 and December 2015.The
company will defer income share transferred in the current profit and loss on the basis of depreciation life as of
the date of the predetermined workability state the related assets reach.
21. In 2015, the Company received the subsidy funds of 202,608.00 RMB on energy-saving reconstruction,
amortized by 8-year depreciation life of the relevant asset, the no business income was 52,762.50 RMB at the
current period, the ending balance without amortization was 149,845.50 RMB
28.Stock capital
Changed（+，-）
Balance in Balance in
Capitalization
year-begin Issuance of
Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
506,521,849.00 506,521,849.00
shares
29.Capital reserves
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 1,574,407,414.34 1,574,407,414.34
Other 10,722,637.03 10,722,637.03
Total 1,585,130,051.37 1,585,130,051.37
159
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
30.Other Comprehensive income
Amount of current period
Less ：
Previously rec
Amount for After - tax a After - tax a
Year-beginni Year-end
Items ognized in pro
the period Less： ttributable t ttributable t
ng balance balance
fit or loss in ot
before inco Income tax o the parent o minority s
her comprehen
me tax company hareholders
sive income
1.Other comprehensive income will
be reclassified into
income or loss in the future
Including: remeasurement of net
assets or net liabilities of defined
benefit plans
Share of other comprehensive income
of the investee that cannot be
transferred to profit or loss accounted
for using the equity method
2.Other comprehensive income
33,389,117.4 1,923,588.7 -30,176,930 3,212,187
reclassifiable to profit or loss in 31,669,260.70 431,258.19
6 8 .11 .35
subsequent periods
Including ： Share of other
comprehensive income of the
investee that cannot be
transferred to profit or loss
accounted for using the equity
method
Gains and losses from changes
33,421,401.1 1,725,032.7 -30,375,486 3,045,914
in fair value of financial assets 31,669,260.70 431,258.19
1 5 .14 .97
available for sale
Held-to-maturity investment
that is reclassified as financial
assets available for sale
Effective gains(losses) arising from
cash flow hedging instruments
Translation differences of financial -32,283.65 198,556.03 198,556.03 166,272.3
160
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
statements denominated 8
Total of other comprehensive income 33,389,117.4 1,923,588.7 -30,176,930 3,212,187
31,669,260.70 431,258.19
6 8 .11 .35
31.Surplus reserve
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 64,403,027.10 6,136,292.76 70,539,319.86
Total 64,403,027.10 6,136,292.76 70,539,319.86
The increase in the surplus reserves for the current period is caused by the legal surplus reserves withdrawn as per
10% of the net profits of the parent company.
32.Retained profits
Items Amount of this period Amount of last period
Before adjustments: Retained profits at 6,805,203.33 124,997,823.59
the period end
Adjustment: Total unappropriated
profits at the beginning of the year
After adjustments: Retained profits at the 6,805,203.33 124,997,823.59
period beginning
Add: Net profit attributable to owners of 8,497,227.40 -113,591,328.26
the Company for the period
Less: Appropriation to statutory surplus 6,136,292.76 4,601,292.00
reserve
Appropriation to discretionary
surplus reserveCommon risk provision
Appropriation to
Common stock dividend payable
Common stock dividends Converted to
shares
Retained profits at the period end 9,166,137.98 6,805,203.33
33.Business income, Business cost
（1）Business income
Items Amount of current period Amount of previous period
Income from Main Business 1,220,983,979.24 1,205,218,842.69
161
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Other Business income 5,762,812.38 5,733,705.88
Total 1,226,746,791.62 1,210,952,548.57
Main business cost 1,136,902,952.29 1,149,096,458.05
Other business cost 5,608,060.55 5,647,004.79
Total 1,142,511,012.84 1,154,743,462.84
（2）Main business（Industry）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic and foreign
trade 429,639,819.01 423,199,182.16 418,662,598.31 415,021,559.43
700,600,503.65 690,228,637.37 697,875,210.57 710,855,827.41
Manufacturing
Property management,
90,743,656.58 23,475,132.76 88,681,033.81 23,219,071.21
leasing
Total 1,220,983,979.24 1,136,902,952.29 1,205,218,842.69 1,149,096,458.05
（3）Main business（Production）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Property and rental
income 90,743,656.58 23,475,132.76 88,681,033.81 23,219,071.21
Textile income 25,205,284.70 27,117,500.23 36,871,877.02 30,147,926.39
Polaroid income 803,719,803.87 787,302,128.29 734,488,663.78 752,645,742.75
Trade income 301,315,234.09 299,008,191.01 345,177,268.08 343,083,717.70
Total 1,220,983,979.24 1,136,902,952.29 1,205,218,842.69 1,149,096,458.05
（4）Main Business（Area）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 446,846,597.09 396,404,251.87 427,602,892.57 343,117,315.91
Oversea 774,137,382.15 740,498,700.42 777,615,950.12 805,979,142.14
Total 1,220,983,979.24 1,136,902,952.29 1,205,218,842.69 1,149,096,458.05
（5）Operating income from top five clients
162
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Name Income Proportion
First 318,888,124.08 25.99%
Second 300,886,664.10 24.53%
Third 141,768,566.85 11.56%
Fourth 40,520,628.95 3.30%
Fifth 33,128,839.03 2.70%
Total 835,192,823.01 68.08%
34.Business tax and subjoin
Items Amount of current period Amount of previous period
Business tax 4,569,235.38 4,627,582.53
Urban construction tax 456,427.96 534,309.40
Education surcharge 282,652.28 381,647.42
Other 2,316,656.14 2,362,429.89
Total 7,624,971.76 7,905,969.24
35.Sales expenses
Items Amount of current period Amount of previous period
Wage 3,328,467.06 4,363,205.11
Transportation changes 3,570,014.59 5,836,916.82
Exhibition fee 214,273.75 427,035.70
Advertising expenses 21,367.52 47,821.93
Business expenses 803,058.95 796,292.50
Samples and product loss 153,275.77 131,439.90
Other 3,653,457.09 2,464,913.21
Total 11,743,914.73 14,067,625.17
163
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
36.Administrative expenses
Items Amount of current period Amount of previous period
Wage 43,599,715.93 39,927,512.63
Property insurance 531,310.04 520,476.41
Repair charge 1,040,496.65 320,063.00
Business entertainment 1,436,619.00 1,839,218.23
Travel expenses 1,135,661.35 1,415,640.88
Office expenses 1,487,998.89 1,731,141.43
Water and electricity 3,839,832.91 655,053.39
Tax 1,364,877.14 1,222,081.41
Lawsuit expenses 120,304.55 412,056.24
Agency expenses 1,710,285.57 2,457,575.02
R& D 30,867,294.24 55,070,970.28
Board fees 65,515.20 73,289.60
Other 7,945,060.22 6,300,185.37
Depreciation of fixed assets 6,370,639.10 4,948,505.73
Amortization of intangible assets 1,205,966.55 2,298,368.48
Amortization of long-term deferred
expenses 134,803.96 49,821.45
Low consumables amortization 188,323.00 254,145.90
Total 103,044,704.30 119,496,105.45
37.Financial Expenses
Items Amount of current period Amount of previous period
6,843,784.81 9,608,435.14
Interest expenses
-38,467,889.51 -33,143,531.65
Interest income
Exchange loss 6,356,852.45 -7,497,707.98
164
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
818,934.15 639,963.89
Fees and other
-24,448,318.10 -30,392,840.60
Total
38.Loss of assets impairment
Items Amount of current period Amount of previous period
3,364,121.82 -5,232,365.43
I .Losses for bad debts
48,814,110.58 56,794,403.85
II. Losses for falling price of inventory
9,614,758.55
III. Goodwill impairment
Total 61,792,990.95 51,562,038.42
39.Investment income
1.Detail
Items Amount of this period Amount of last period
Investment income from the disposal of
2,431,042.20 1,788,818.78
long-term equity investment
Investment income arising from disposal of
long-term equity investment
Hold the investment income during from 4,374,824.87 4,609,627.57
available-for-sale financial assets
Investment income gain from available for sale
88,006,690.51 16,896,190.19
financial assets
Total 94,812,557.58 23,294,636.54
2.Long-term equity investment income by costing
Amount of current period Amount of previous
Name Reason to increase or decrease
period
Shenzhen Haohao Property Leasing Co.,
635,434.15 574,502.13
Ltd.
386,836.52 350,422.87
Shenzhen Xieli Automobile Co., Ltd.
165
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Amount of current period Amount of previous
Name Reason to increase or decrease
period
Shenzhen Changlianfa Printing and 55,707.44
57,218.31
dyeing Company
-76,209.23 395,273.09
Jordan Garment Factory
Yehui International Co., Ltd. 1,427,762.45 412,913.25
Total 2,431,042.20 1,788,818.78
40. Non-Operation income
1．Non-Operation income
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Total gains from disposal of
235,533.62 135,925.51 235,533.62
non-current assets
Including：Gains from disposal
235,533.62 135,925.51 235,533.62
of fixed assets
Government Subsidy 21,420,940.38 16,688,387.98 21,420,940.38
Other 2,465,865.62 4,335,675.77 2,465,865.62
Total 24,122,339.62 21,159,989.26 24,122,339.62
2．Government subsidy reckoned into current gains/losses
Assets-related/
Amount of this Amount of last
Items income
period period
-related
Related to the
Grant funds for TFT-LCD polarizer narrow line (line 5)
500,000.00 500,000.00 assets
project
Related to the
175,090.20 175,090.20 assets
Purchase of imported equipment and technology
Related to the
142,857.14 142,857.14 assets
Textile special funds
166
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Related to
7,909,980.00 7,909,980.00 income
Government R & D subsidies
Related to the
200,000.00 200,000.00 assets
High-tech Industrialization demonstration projects
Related to the
1,000,000.00 1,000,000.00 assets
National grant fundsfor new flat panel display industry
Related to the
Loan subsidy interest allocated by Finance Commission
241,944.44 241,944.44 assets
of Shenzhen Municipality
Related to the
Subsidy amortization of the projecto of TFT-LCD
1,300,000.00 1,300,000.00 assets
polarizer industrialization
Innovation entrepreneurship fund amortization of
Related to the
TFT-LCD polarizer period I project for Pingshan New
50,000.00 50,000.00 assets
District Development and Finance Bureau
Related to the
Financing aid amortization of introducing advanced
14,388.10 28,776.20 assets
technique
Related to
Innovation entrepreneurship subsidy of Pingshan New
590,000.00 income
District Development and Finance Bureau
Related to
Reward funds for innovation of SASAC of Shenzhen
300,000.00 income
Municipality
Related to
Special fund subsidy of industry development of Futian
63,000.00 32,000.00 income
District
Financing aid of Finance Commission of Shenzhen
Related to
Municipality for optimizing foreign trade export
74,623.00 income
structure
Related to
6,380.00 income
Financing aid of the domestic market development
Related to
93,543.00 60,460.00 income
Subsidy of the exhibition
Related to
250,000.00 income
Financing aid of science and technology platform
Related to
88,152.00 100,000.00 income
Interest subsidy
Related to
200,000.00 income
Subsidy of dyeing polarizer project
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Related to
Incentive of outstanding science-and-technology
50,000.00 income
enterprise
Related to
8,287,100.00 4,140,900.00 income
High-tech major projects Special funds
Shenzhen Engineering laboratory polarizing material and Related to
technical engineering 37,500.00 assets
Related to
Shenzhen polarizing material and technical engineering
375,000.00 assets
Related to
Capital funding for Technology Center 225,000.00 assets
Related to
Energy saving transformation grant funds amortization
52,762.50 assets
Total 21,420,940.38 16,688,387.98
41．Non-current expenses
The amount of non-operating
Items
Amount of current period Amount of previous period gains & lossed
Total of non-current asset
Disposition loss 260,642.59 83,643.89 260,642.59
Incl: loss of fixed assets
disposition 260,642.59 83,643.89 260,642.59
Other 23.02 113.60 23.02
Total 260,665.61 83,757.49 260,665.61
42.Income tax expenses
(1)Income tax expenses
Items
Amount of current period Amount of previous period
Current income tax expense 24,352,326.20 14,590,550.96
Deferred income tax expense 10,302,193.13 36,941,833.66
Total 34,654,519.33 51,532,384.62
(2)Reconciliation of account profit and income tax expenses：
In RMB
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Items Amount of current period
Total profits 43,151,746.73
Income tax computed in accordance with the applicable tax rate 10,787,936.68
Effect of different tax rate applicable to the subsidiary Company 905,254.95
Influence of income tax before adjustment 69,480.07
Influence of non taxable income -3,054,186.40
Impact of non-deductible costs, expenses and losses 3,862,227.82
Affect the use of deferred tax assets early unconfirmed
deductible losses
The current period does not affect the deferred tax assets
22,083,806.21
recognized deductible temporary differences or deductible loss
Income tax expense 34,654,519.33
43.Other comprehensive income
1．Other comprehensive income items and income tax effects and transferred to profit and loss
Items Amount of current period Amount of previous period
I. Net amount included in other comprehensive
income that cannot be transferred to profit or loss
in the future
I.Share of other comprehensive income of the investee that
cannot be transferred to profit or loss accounted for using
the equity method
II. Net amount included in other comprehensive
income that can be transferred to profit or loss in -30,176,930.11 9,854,344.17
the future
1.
Share of other comprehensive income of the
investee that can be transferred to profit or loss
accounted for using the equity method
Less ： Previously recognized in other comprehensive
income, Profit or loss in current period
Subtotal
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Items Amount of current period Amount of previous period
2. The income gains (losses) amount of available for sale
1,725,032.75 30,124,854.43
financial assets
Less： Recognized in other comprehensive income that tax
431,258.19 7,531,213.61
effect amount
Less ： Previously recognized in other comprehensive
31,669,260.70 12,707,013.00
income, Profit or loss in current period
Subtotal -30,375,486.14 9,886,627.82
3.
198,556.03 -32,283.65
Translation differences of financial statements
denominated in foreign currencies
Less ： Previously recognized in other comprehensive
income, Profit or loss in current period
Subtotal 198,556.03 -32,283.65
III.Total of other comprehensive income -30,176,930.11 9,854,344.17
2.Adjustment process of accounting profit and income tax expense
Gains and losses from
Foreign currency
changes in fair value of
Items translation differences Subtotal
available for sale
of financial statements
financial assets
I. Beginning balance last year 23,534,773.29 23,534,773.29
II.Changes in the amount last year 9,886,627.82 -32,283.65 9,854,344.17
III.Beginning balance this year 33,421,401.11 -32,283.65 33,389,117.46
IV.Changes in the amount this year -30,375,486.14 198,556.03 -30,176,930.11
V.The year-end balance 3,045,914.97 166,272.38 3,212,187.35
44.Items of Cash flow statement
(1)Other cash received from business operation
Items Amount of current period Amount of previous period
54,399,026.00 31,641,326.00
Government Subsidy
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
41,127,157.51 44,113,060.32
Bank deposit interest income and other
Total 95,526,183.51 75,754,386.32
2.Other cash paid related to operating activities
Other cash paid relating to operating activities this period was RMB 50,155,116.37, mainly for the payment of the
cost of sales and administration expenses.
3.Other Cash received related to investment activities
Items Amount of current period Amount of previous period
Structure deposit and income 30,591,780.82 201,803,986.29
Other 567,210.00
Total 30,591,780.82 202,371,196.29
(4)Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit investment 490,000,000.00 100,000,000.00
Other 59,223.58
Total 490,059,223.58 100,000,000.00
45.Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Supplement Information Amount of Amount of
current period previous period
I. Adjusting net profit to cash flow from operating activities
Net profit 8,497,227.40 -113,591,328.26
Add: Impairment loss provision of assets 15,178,431.93 -24,728,253.16
Depreciation of fixed assets, oil and gas assets and consumable biological
80,299,389.88 78,523,175.42
assets
1,205,966.55 2,298,368.48
Amortization of intangible assets
Amortization of Long-term deferred expenses 292,639.56 385,402.12
Loss on disposal of fixed assets, intangible assets and other long-term -52,725.62
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Supplement Information Amount of Amount of
current period previous period
deferred assets
Loss on scrap of fixed assets 25,108.97 444.00
Loss on fair value changes
Financial cost -12,222,940.66 5,937,407.06
Loss on investment -94,812,557.58 -23,294,636.54
Decrease in deferred income tax assets 192,322.96 36,941,833.66
Increased of deferred income tax liabilities 10,572,975.17 -52,384,071.50
Decrease of inventories -80,315,474.20 -7,352,419.31
11,626,183.95 -49,608,590.83
Decease of operating receivables
99,045,226.43 102,121,539.16
Increased of operating Payable
Other -3,897,638.73
Net cash flows arising from operating activities 39,584,500.37 -48,701,494.05
II. Significant investment and financing activities that without cash
flows:
Debt-to-capital conversion
Convertible loan due within 1 year
Fixed assets acquired under financial lease
3．Movement of cash and cash equivalents：
Ending balance of cash 748,658,875.60 1,098,232,359.02
Less: Beginning balance of cash equivalents 1,098,232,359.02 943,913,951.68
Add：Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents -349,573,483.42 154,318,407.34
(2)Composition of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
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I. Cash 1,098,232,359.02 943,913,951.68
Including：Cash at hand 8,588.42 85,537.12
Demand bank deposit 1,097,734,798.40 941,362,518.21
Demand other monetary funds 488,972.20 2,465,896.35
Depositing performs
Loan to performs
II. Cash equivalents
Including：Debt instrument matured within
three months
III. Balance of cash and cash equivalents at
the period end
1,098,232,359.02 943,913,951.68
46.Foreign currency monetary items
(1)Foreign currency monetary items
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds
Including：USD 8,497,366.48 6.4936 55,178,498.97
JPY 5,371,949.00 0.053875 289,413.75
HKD 154,976.76 0.83778 129,836.43
Account receivable
Including：USD 9,770,547.62 6.4936 63,446,028.03
JPY 240,306.00 0.053875 12,946.49
HKD 278,280.00 0.83778 233,137.42
Other receivable
Including：HKD 330,841.65 0.83778 277,172.52
Account payable
Including：USD 17,319,633.39 6.4936 112,466,771.38
173
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JPY 1,731,904,956.09 0.053875 93,306,379.51
Other payable
Including：USD 81,000.00 6.4936 525,981.60
JPY 24,567,800.00 0.053875 1,323,590.23
HKD 1,530,628.30 0.83778 1,282,329.78
Euro 51,500.00 7.0952 365,402.80
Short –term loans
Including：USD 2,226,967.88 6.4936 14,461,038.63
JPY 731,424,283.00 0.053875 39,405,483.25
Interest payable
Including：USD 260.20 6.4936 1,689.63
JPY 1,606,915.99 0.053875 86,572.60
VI. Change in consolidation scope
No change of scope of consolidation from last year.
VII. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
Shenzhen Lishi
Domestic trade,
Industry Establish
Shenzhen Shenzhen Property
Development Co.,
Management
Ltd 100.00
Accommodation, Establish
Shenzhen
Shenzhen Shenzhen restaurants,
Huaqiang Hotel
business center; 100.00
Shenfang Establish
Property Property
Shenzhen Shenzhen
Management Co., Management
Ltd. 100.00
174
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Beauty Production of Establish
fully electronic
Century Garment Shenzhen Shenzhen 100.00
jacquard knitting
Co., Ltd. whole shape
Shenzhen
Shengbo Operating import
Ophotoelectric Shenzhen Shenzhen Purchase
Technology Co., and export
Ltd business 100.00
Shenzhen Operating import
Shenfang Import
Shenzhen Shenzhen and export Establish
& export Co.,
Ltd. business 100.00
Shengtou
(Hongkong) Production and
Hongkong Hongkong Establish
Co.,Ltd. sales of polarizer
100.00
2.Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding proportion(%) The accounting
Joint venture or
Place of treatment of
associated Place of operation Nature
registration Directly Indirectly investment in
enterprise
associates
Shenzhen Haohao
Property Leasing Shenzhen Shenzhen Property leasing 50.00 Equity method
Co., Ltd.
Shenzhen Xieli
Automobile Co., Shenzhen Shenzhen Property leasing 50.00 Equity method
Ltd.
Shenzhen
Changlianfa
Shenzhen Shenzhen Property leasing 40.25 Equity method
Printing and
dyeing Company
Jordan Garment
Jordan Jordan Manufacturing 35.00 Equity method
Factory
Yehui
International Co., Hongkong Hongkong Manufacturing 22.75 Equity method
Ltd.
(2)Key financial information of significant joint venture or associated enterprise
175
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Year-beginning balance/
Year-end balance/ Amount
Amount of previous
of current period
period
Joint venture：
Total book value of the investment 8,193,144.85 6,720,327.40
Total amount of the pro rata calculation of the following
items
--Net profit 1,022,270.67 924,925.00
--Other Comprehensive income
--Total comprehensive income 1,022,270.67 924,925.00
Dividends received from joint ventures this period 474,378.22
Associated enterprise：
Total book value of the investment 14,686,124.21 4,614,853.99
Total amount of the pro rata calculation of the following
items
--Net profit 1,408,771.53 863,893.78
--Other Comprehensive income 198,556.03 -32,283.65
--Total comprehensive income 1,607,327.56 831,610.13
Dividends received from joint ventures this period 545,386.50
3. Significant common operation
Proportion /shareportion
Name Main operating place Registration place Business nature
Directly Indirectly
Guanhua Building Shenzhen Shenzhen Cooperate 50.16%
According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on cooperative
development and construction of Guanhua building", jointly developed Guanhua building construction, the compa
ny invested 50.16%, Hong Qiao Hui Industrial Co., Ltd. invested 49.84%, the two sides need to agree matters affe
cting the cooperation projects. In addition, the two sides agreed to the project is completed in accordance with the
ratio of the actual investment allocation or co-operation, specific programs need further deliberations.
As of the reporting period, Guanhua unfinished building projects.
176
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
VIII. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank
deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the
receivables, the company has developed the relevant policies to control the credit risk, and set up the
corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of
debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the
company shall regularly monitor the debtor’s credit history. With regard to the bad credit record for the debtor, the
company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks
within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments
affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest
rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of
the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative
proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the
price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as
possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets.
The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance,
the marketable securities available to be cash and the rolling forecast for the future cash flow.
IX. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Closing fair value
Items Fir value measurement Fir value measurement Fir value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
177
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
measurement
(1).Available for sale
financial assets 10,054,476.60 10,054,476.60
1.Equity instrument
investment 10,054,476.60 10,054,476.60
Total of Consistent fair
value measurement 10,054,476.60 10,054,476.60
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
The fair value of financial assets available for sale at the end of period is measured based on the closing price of
Shenzhen Stock Exchange on December 31,2016.
X. Related parties and related-party transactions
1.Parent company information of the enterprise
The parent company The parent company
Registered capital
Name Registered address Nature of the Company's of the Company’s
（RMB’0000）
shareholding ratio vote ratio
18/F, Investment Equity investment ,
Shenzhen
Building, Shennan Real-estate
Investment Holdings 2,145,000.00 46.21% 49.39%
Co.,Ltd. Road, Futian Development and
District, Shenzhen Guarantee
The company is authorized and approved to be state-owned independent company by Shenzhen Government, and
it Executes financial contributor function on state-owned enterprise within authorization scope.
The finial control of the Company was Shenzhen People’s Govemment state owned assets supervision &
Administration Commission.
2.Subsidiaries of the Company
Details refer to the Note VII-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VII-2, Interests in joint ventures or associates
4.Other Related parties information
Other related party Relationship to the Company
Shenzhen Shenchao Technology Investment Co., Ltd. Subject to the same party controls
178
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Shenzhen Tianma Microelectronics Co., Ltd. Chairman of the Board Is the Vice Chairman of the Company
Shengbo （HK）Co., Ltd. The Company Executives are Director of the company
Shenzhen Xiangjiang Trade Co., Ltd. Sharing Company
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Anhui Huapeng Textile Co., Ltd. Sharing Company
5. Related transactions.
1．Sales of goods and vendering of services
Related party Content
Amount of current period Amount of previous period
Shenzhen Tianma 2,077,019.45 3,169,202.48
Sales polarizer sheet
Microelectronics Co., Ltd.
2．Entrusted loans to related parties
For the construction of the project of polarizer sheet for TFT-LCD, the Company signed Entrusted Loan Contract
with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of
Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology
Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd.
to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the
first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted
loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus 2%. In case of
adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment
minus 2% shall apply as interest rate of entrusted loan from the first day of the next month after the adjustment of
basic interest rate.As of December 31, 2015, The Company actually received a loan of RMB 160 million.
3. Rewards for the key management personnel
Items
Amount of current period Amount of previous period
Rewards for the key management 4.3809 million 5.5268 million
personnel
6. Receivables and payables of related parties
（1）Receivables
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shenzhen Tianma
Account receivable 349,938.59 17,496.93 568,133.34 28,406.67
Microelectronics
179
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Co., Ltd.
Other Account Anhui Huapeng
3,600,000.00 270,000.00 1,800,000.00 90,000.00
receivable Textile Company
Other Account Shenzhen Dailishi
277,172.52 13,858.63 257,450.22 12,872.51
receivable Underwear Co., Ltd.
（2）Payables
In RMB
Amount at year end Amount at year beginning
Name Related party
Shenzhen Xinfang Knitting Co.,
Other payable 244,789.85 244789.85
Ltd.
Shenzhen Xiangjiang Trade
Other payable 40,000.00 40,000.00
Co., Ltd.
Shenzhen Changlianfa Printing
Other payable 916,673.69 584,644.49
and dyeing Co., Ltd.
Shenzhen Haohao Property
Other payable 4,179,489.85 3,479,489.85
Leasing Co., Ltd.
Other payable Yehui International Co.,Ltd. 1,137,966.35 1,071,546.49
Other payable Shengbo （Hongkong）Co., Ltd. 315,000.00 315,000.00
Shenzhen Shenchao Technology
Interest payable 39,000,625.75 32,806,459.08
Investment Co., Ltd.
XI. Subsequent events
During the reporting period, the company received the No.28 respondent notice issued by Shenzhen Intermediate
People's Court (2014) Foreign legislation, the plaintiff association of Hong Kong Xieli Automobile Co., Ltd
liability disputes has been formally accepted. The company as the first defendant, Shenzhen Xieli Automobile Co.,
Ltd. was the second defendant. The plaintiff requested: 1, the economic loss of tort liability by the total amount of
RMB 31.8579 million; 2, the second defendant involved in joint liability of the amount of compensation; 3, the
litigation fee paid by two co-defendants. As of December 31,2015, this case was in process.
XII. Post-balance-sheet events
According to the dividend distribution preplan made by the board of directors of the Company, the Company will
neither distribute profits nor capitalize capital surplus for the current period.
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Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
XIII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
Year-end balance
Book balance Provision for bad debts
Classification
Proportio Proportion( Book value
Amount Amount
n(%) %)
Accounts receivable of
individual significance and
subject to individual
impairment assessment
Accounts receivable subject to
impairment assessment by
862,162.70 100.00 43,108.13 5.00 819,054.57
credit risk characteristics of
a portfolio
Accounts receivable of
individual insignificance but
subject to individual
impairment assessment
Total 862,162.70 100.00 43,108.13 819,054.57
Year-beginning
Book balance Provision for bad debts
Classification
Proportio Proportion( Book value
Amount Amount
n(%) %)
Accounts receivable of
individual significance and
subject to individual
impairment assessment
Accounts receivable subject to
impairment assessment by
credit risk characteristics of
a portfolio 493,566.28 100.00 24,678.31 5.00 468,887.97
181
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Year-beginning
Book balance Provision for bad debts
Classification
Proportio Proportion( Book value
Amount Amount
n(%) %)
Accounts receivable of
individual insignificance but
subject to individual
impairment assessment
Total 493,566.28 100.00 24,678.31 468,887.97
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
Balance in year-end
Aging
Account receivable Bad debt provision Proportion(%)
Within 1 year 862,162.70 43,108.13 5.00
2.Other receivable
(1)Category of Other receivable
Year-end balance
Book balance Provision for bad debts
Classification
Book value
Amount Proportio Amount Proportion(
n(%) %)
Other Accounts receivable of
individual significance and
11,981,464.60 12.98 11,981,464.60 100.00
subject to individual
impairment assessment
Other Accounts receivable
subject to impairment
assessment by credit risk 79,979,624.27 86.68 7,435,914.49 9.30 72,543,709.78
characteristics of a
portfolio
Other Accounts receivable of
individual insignificance but
311,486.35 0.34 311,486.35 100.00
subject to individual
impairment assessment
182
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Year-end balance
Book balance Provision for bad debts
Classification
Book value
Amount Proportio Amount Proportion(
n(%) %)
Total 92,272,575.22 100.00 19,728,865.44 72,543,709.78
Year-beginning
Book balance Provision for bad debts
Classification
Book value
Amount Proportio Amount Proportion(
n(%) %)
Other Accounts receivable of
individual significance and
11,981,464.60 14.30 11,981,464.60 100.00
subject to individual
impairment assessment
Other Accounts receivable
subject to impairment
assessment by credit risk 71,511,079.72 85.33 6,929,687.26 9.69 64,581,392.46
characteristics of a
portfolio
Other Accounts receivable of
individual insignificance but
311,486.35 0.37 311,486.35 100.00
subject to individual
impairment assessment
Total 83,804,030.67 100.00 19,222,638.21 64,581,392.46
（1）Other Receivable accounts with large amount individually and bad debt provisions were provided
Balance at year-end
Other receivable （Unit）
Other receivable Provision for bad debts Proportion% Reason
Jiangxi Xuanli String Co., 11,389,044.60 11,389,044.60 Unable to
100.00
Ltd. recover
Shenzhen Tianlong Industry & 592,420.00 592,420.00 Unable to
100.00 recover Unable
Trade Co., Ltd.
to recover
Total 11,981,464.60 11,981,464.60
183
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（2）In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within 1 year 70,741,994.77 3,537,099.74 5.00%
1-2 years 1,800,000.00 180,000.00 10.00%
Over 3 year 7,437,629.50 3,718,814.75 50.00%
Total 79,979,624.27 7,435,914.49
2.The amount of allowance for bad debt recovered or reversed during the current year is RMB506,227.23.
（3）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
Internal current account 75,889,102.97 69,244,280.72
Unit account 16,251,300.27 14,431,577.97
Other 132,171.98 128,171.98
Total 92,272,575.22 83,804,030.67
（4）The ending balance of other receivables owed by the imputation of the top five parties
Bad debt
Portion in total
Year-end provision
Name Nature Age other
balance Year-end
receivables(%)
balance
63,644,822.25 3,182,241.10
First Internal current account Within 1 year 68.98
Second Unit account 11,389,044.60 Over 3 years 12.34 11,389,044.60
Third Internal current account 7,168,680.72 Over 3 years 7.77 3,584,340.36
5,000,000.00 Within 1 year 5.42 250,000.00
Fourth Internal current account
75,600.00 Over 3 years 0.08 37,800.00
1,800,000.00 Within 1 year 1.95 90,000.00
Fifth
Unit account
Total 1,800,000.00 1-2 Year 1.95 180,000.00
184
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Total 90,878,147.57 98.49 18,713,426.06
3.Long-term equity investment
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,772,806,395.91 16,582,629.30 1,756,223,766.61 1,779,106,095.91 2,249,587.82 1,776,856,508.09
subsidiary
Investment to
joint ventures and
23,145,924.05 266,654.99 22,879,269.06 21,061,712.32 266,654.99 20,795,057.33
associated
enterprises
Total 1,795,952,319.96 16,849,284.29 1,779,103,035.67 1,800,167,808.23 2,516,242.81 1,797,651,565.42
（1）Investment to the subsidiary
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen Shengbo
Optoelectrionc
Technology Co.,
Ltd. 1,716,663,070.03 1,716,663,070.03 14,415,288.09 14,415,288.09
Shenzhen Lisi
Industrial
Development Co.,
Ltd. 8,073,388.25 8,073,388.25
Shenzhen Beauty
Centruty Garment
Co., Ltd. 30,867,400.00 30,867,400.00 2,167,341.21
Shenzhen
Shenfang Import
& Export Co., Ltd 6,299,700.00 6,299,700.00
Shenzhen
Huaqiang Hotal 15,489,351.08 15,489,351.08
Shenfang Property
1,713,186.55 1,713,186.55
Management Co.,
185
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Ltd.
Total 1,779,106,095.91 0.00 6,299,700.00 1,772,806,395.91 14,415,288.09 16,582,629.30
（2）Investment to joint ventures and associated enterprises
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decreas Gain/loss nt of Declarati
Opening Add Other n Closing of
Name ed of other on of cash
balance investme equity impairme Other balance impairme
investm Investme comprehe dividends
nt changes nt nt
ent nt nsive or profit
provision provision
income
I. Joint ventures
Shenzhen
Haohao
Property
Leasing Co., 3,762,406. 635,434.1 4,397,840
Ltd. 73 5 .88
Shenzhen
Xieli
Automobile 3,675,122. 386,836.5 4,061,958 266,654.9
Co., Ltd. 44 2 .96 9
7,437,529. 1,022,270 8,459,799 266,654.9
Subtotal
17 .67 .84 9
II. Associated enterprises
Shenzhen
Changlianfa
Printing and
dyeing 1,814,158. 1,871,377
Company 78 57,218.31 .09
Jordan
Garnent 3,262,744. -76,209.2 197,479.0 3,384,014
Factory 69 3 3 .49
186
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Yehui
International 8,547,279. 1,427,762 545,386.5 9,430,732
Co., Ltd. 68 .45 1,077.00 0 .63
13,624,18 1,408,771 198,556.0 545,386.5 14,686,12
Subtotal
3.15 .53 3 0 4.21
21,061,71 2,431,042 198,556.0 545,386.5 23,145,92 266,654.9
Total
2.32 .20 3 0 4.05 9
4.Business income and Business cost
（1）Business income
Items Amount of current period Amount of previous period
59,936,965.65 58,390,060.58
Income from Main Business
4,536,386.18 4,734,258.31
Other Business income
Total 64,473,351.83 63,124,318.89
Cost from Main Business 7,797,417.08 7,748,598.15
Other Business cost 4,536,386.16 4,734,258.26
Total 12,333,803.24 12,482,856.41
（2）Main business（Industry）
Name Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Rental industry 59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
Total 59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
（3）Main business（Production）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rental industry 59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
Total 59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
187
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
（4）Main business（Area）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
Shenzhen
59,936,965.65 7,797,417.08 58,390,060.58 7,748,598.15
Total
（5）Operating income from top five clients
Name Business Income Proportion(%)
First 26,979,808.44 41.85%
Second 1,778,880.00 2.76%
Third 1,680,000.00 2.60%
Fourth4 1,110,014.77 1.72%
Fifth 890,400.00 1.38%
Total 32,439,103.21 50.31%
5.Investment income
Items Amount of current Amount of previous
period period
Income from long-term equity investment measured by adopting
8,048,378.51
the cost method
Income from long-term equity investment measured by adopting
2,431,042.20 1,788,818.79
the Equity method
Investment income arising from disposal of long-term eqiuty
427,368.86
investments
Investment income received from holding of available-for –sale
3,030,660.52 3,377,273.30
financial assets
The investment income procure from the available-for-sale
44,345,614.09 16,896,190.19
financial assets
Total 58,283,064.18 22,062,282.28
6. Supplement information of Cash Flow Statement
188
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Supplement information Amount of Amount of
current period previous period
I. Adjusting net profit to cash flow from operating activities
61,362,927.65 46,012,920.02
Net profit
14,939,945.14 -5,163,448.04
Add : Impairment loss provision of assets
Depreciation of fixed assets, oil and gas assets and consumable biological
8,301,759.87 8,255,226.95
assets
Amortization of intangible assets 310,526.55 614,528.48
Amortization of long-term deferred expenses
Loss on disposals of fixed assets, intangible assets and other long-term
assets(“-“for gains)
Loss on discard of fixed assets -222,212.70
Loss on fair value changes
Financial expenses -8,307,625.26 -1,392,989.91
-22,062,282.2
Loss on investment -58,283,064.18
8
Decrease of deferred income tax assets 352,502.39 1,653,775.47
Increase of deferred income tax assets -52,384,071.50
Decrease in inventories
Decrease of operating receivable -4,280,901.95 -1,764,126.72
Increase of operating recivable 17,119,385.28 9,804,230.15
Other -3,897,638.73
Net cash flows arising from operating activities 31,293,242.79 -20,323,876.11
II. Significant investment and financing activities that without cash flows
Debt-to –capital conversion
Convertible loan due within 1 year
Fixed assets acquired under financial lease
189
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
Supplement information Amount of Amount of
current period previous period
3. Net Changes of cash and cash equivalents
Ending balance of cash 271,582,749.03 457,379,886.16
Less: Beginning balance of cash 457,379,886.16 365,620,681.34
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents -185,797,137.13 91,759,204.82
XIV. Supplement information
1. Particulars about current non-recurring gains and loss
Items Amount Notes
Non-current asset disposal gain/loss -25,108.97
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s 21,420,940.38
business and granted under the state’s policies)
Except for effective hedge business relevant to
normal operation of the Company, gains and losses
arising from fair value change of tradable financial
assets and tradable financial liabilities, and 88,006,690.51
investment income from disposal of tradable financial
assets, tradable financial liabilities and financial
assets available for sale
Single impairment test for impairment of receivables
transferred back to preparation 790,775.00
Other non-business income and expenditures other
2,465,842.60
than the above
Influenced amount of income tax -11,902,114.51
Total 100,757,025.01
190
Shenzhen Textile (Holdings) Co., Ltd. 2015 Annual Report
2. Return on net asset and earnings per share
EPS
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to the Common
0.39 0.02 0.02
stock shareholders of Company.
Net profit attributable to the Common
stock shareholders of Company after -4.22 -0.18 -0.18
deducting of non-recurring gain/loss.
191
深圳市纺织(集团)股份有限公司 2015 年年度报告全文
XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financial
controller;
2.The original of the auditor’s report bearing the seal of the certified public accountants and the signature of
C.P.A.
3.The originals of all the Company’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period.
The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
March 31, 2016
192
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