Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2016
August 26, 2016
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
I. Important Notice, Table of Contents and Definitions
The Board of Directors，the Supervisory Committee, the directors, the supervisors, and expecutives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
All the directors attended the board meeting for reviewing the Semi-Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mrs.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 the semi-report.
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. The Semi-Annual Report 2016
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Data and Financial Indicators
IV. Report of the Board of Directors
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. Financial Report
X. Documents available for inspection
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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 Regulatory
National Assets Regulatory Commission of Shenzhen Municipal
Commission of Shenzhen Municipal People's Refers to
People's Government
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.
“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 2016 Semi- Annual Report
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
II. Basic Information of the Company
I. Company Information
Stock abbreviation Shen Textile A ,Shen Textile B Stock code： 000045、200045
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳市纺织（集团）股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE （HOLDINGS） CO.,LTD
English abbreviation (If any) STHC
Legal Representative Zhu Jun
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Mo Xiayun
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com moxy@chinasthc.com
III.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2015 Annual Report.
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
said information can be found in the 2015 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2015.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
III. Summary of Accounting Data and Financial Indicators
I.Summary of accounting /Financial Data
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
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 552,157,585.56 620,993,333.48 -11.08%
Net profit attributable to the shareholders
-30,097,851.40 7,668,027.95 -492.51%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -32,378,678.35 -33,384,225.47 -3.01%
listed company（RMB）
Cash flow generated by business operation,
-39,316,195.34 4,293,128.00 -1,015.79%
net（RMB）
Basic earning per share(RMB/Share) -0.06 0.015 -500.00%
Diluted gains per
-0.06 0.015 -500.00%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) -1.40% 0.35% -1.75%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 2,860,439,753.13 2,969,394,978.70 -3.67%
Net assets attrilutable to shareholder of
2,142,462,266.47 2,174,569,545.55 -1.48%
listed company（RMB）
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
No difference .
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-20,770.93
for which assets impairment provision is made)
Govemment subsidies recognized in currentgain and
loss(excluding those closely related to the Company’s business 2,165,711.40
and granted under the state’s policies)
Other non-business income and expenditures other than the above 132,449.53
Less :Influenced amount of income tax -3,436.95
Total 2,280,826.95 --
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. The Semi-Annual Report 2016
IV. Report of the Board of Directors
I. General
The year-2016 is the first year of the "13th Five-Year", as well as is a crucial year for the company to upgrade
technology, improve management and expand scale. During the reporting period, firstly the company continuously
improved the operating ability of polarizer business which has been targeted, and improved the technology, raised
the production line speed, optimized the product structure and speeded up the R&D of new polarizer products and
the bringing in of new materials; secondly the company rolled out the work of introducing strategic investors for
the company’s subsidiary-Shengbo Optoelectronic Co.,Ltd, which aimed to solve the difficulties in the polarizer
business operating, while enriching and expanding the up-stream and down-stream industrial chain and boosting
up the overall competence of the polarizer business; thirdly, according to the 2016 key work arrangement of the
company, the company fully promoted the second phase construction of No.6 line project; fourthly the company
had strengthened the innovation management and cultivated the core team, realized the company’s sustainable and
healthy development.
During the reporting period, the company has achieved the operating income of RMB 552.1576 million, decreased
by 11.08% year on year, Total profit of RMB -25.8607 million, decreased by -202.72% year on year, Net profit of
RMB-30.0979 million , decreased by 492.51%. During the reporting period mainly due to the sale of available for
sale financial assets Net income significantly reduced compared with the same period last year, at the same time,
due to the sharp appreciation of Japanese yen, resulting in raw material costs and exchange losses increased
significantly over last year.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income
552,157,585.56 620,993,333.48 -11.08%
Operating cost 511,249,697.64 588,138,026.03 -13.07%
Sale expenses 4,516,009.63 5,010,699.03 -9.87%
Administrative expenses 46,124,255.12 45,057,284.86 2.37%
Due to the sharp
appreciation of Japanese
Financial expenses 8,972,817.56 -11,273,185.63 179.59% yen, a substantial
increase in foreign
exchange losses.
Due to the sale of stake
Income tax expenses 4,237,195.44 17,507,965.25 -75.80%
in Sino Great Wall Co.,
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Ltd. over the same period
last year .
Due to the company
R&D investment 15,805,570.17 11,956,715.67 32.19% increased Research &
Develop investment.
Net cash flows from Due to customs duties,
-39,316,195.34 4,293,128.00 -1,015.79%
operating activities VAT margin increased.
Due to the investment in
Net cash flows from
33,062,688.27 -422,551,442.19 107.82% the recovery of part of
investing activities
the structured deposits.
Due to repayment
Net cash flows from
-78,059,653.87 -42,034,848.78 -85.70% maturing borrowings for
financing activities
this period.
Due to the investment in
Net increase in cash and
-83,369,088.81 -459,957,122.05 81.87% the recovery of part of
cash equivalents
the structured deposits.
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
Implementation of business plans disclosed in previous periods in this period.
According to the company's 2016 key work arrangements, the completion statuses of each work in the first half
year are as follows:
1. Continuously enhancing the operating capacity for the polarizer business
During the reporting period, firstly the company raised the production line speed, optimized the production
process and expanded the product structure to the large-size from small and medium size; secondly the company
adhered to the positive and active competitive strategy and the differentiated market sales strategy, newly
developed 48 inch, 49 inch, 55 inch TV polarizer which had got client authentication and further expanded the
market shares of the product; thirdly boosted up the efforts of R&D for getting independent intellectual property
rights, centering on the R&D of ultra-thin polarizer for IPS and the polarizer for OLED display and so forth many
of having high added-value products, also, carried out and tracked the work of introducing substitution materials
to many raw materials to reduce the product costs.
During the reporting period, the company applied for 6 patents (4 domestic utility model patents, 2 foreign utility
model patents), and was authorized with 6 patents (1 domestic invention patents, 5 domestic utility model patents).
At present, the company has applied for 66 patents, among them, there were 13 domestic invention patents, 1
foreign invention patent, 47 domestic utility model patents and 5 overseas utility model patents; the company was
authorized with 47 patents which included 5 domestic invention patents, 40 domestic utility model patents and 2
overseas utility model patents.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
2. Actively promoting the construction of the No. 6 line project
During the reporting period, based on No.6 line construction progress plan, the company has completed the open
tender and contract signing for the design and construction of the related engineering and the host equipment, as
well as completed the tender work on part of the public engineering, and the related project constructions are
under process.
3. The operating status of the property companies was steadily going up
During the reporting period, the property companies centered on the rental rate and the rate of capital return and
continued to carry out the improvement plan on the rental proceeds, with the unit rental price in the newly signed
leasing contracts all increased a certain extent. The inspection and acceptance of each item of Guanhua Building
was completed.
4. Openly introducing strategic investors and further enriching and extending the upstream and downstream
industry chain
During the reporting period, in order to solve the current operational difficulties of Shengbo Optoelectronic Co.,Ltd
and enhance its technological level, management level and its profitability, the company started the work to
introduce strategic investors for Shengbo Optoelectronic Co.,Ltd. By introducing the industrial resource-based
strategic investors, enriching and expanding the upstream and downstream industry chain, the overall
competiveness of Shengbo Optoelectronic Co.,Ltd was further improved, meanwhile fully utilizing the advantages
of mixed ownership to excite the inner vitality. It was planned that the shareholding ratio of the introduced
strategic investors will be 40%. Such item was, after the audit, assessment and the appropriate reviewing process
performed, publicly listed on Shenzhen United Property Exchange on July 11, 2016, with the duration of 40
working days that will expired on September 2.
5. Perfecting the "13th Five-Year" strategic plan
During the reporting period, with consideration of the work of introducing strategic investors for Shenbo Company,
the company adjusted and perfected the key contents in terms of finical indicators, polarizer main business
development goals, key projects and supporting measures in the 13th Five-Year" strategic plan, and nailed down
that the company will firmly develop the polarizer business in the "13th Five-Year" period.
6. Strengthening the management of innovation and nurturing the core team
During the reporting period, the company strengthened the technological innovation, closely followed up the R&D
pace of customer and carried out the prospective study, meanwhile, the company continuously optimized and
perfected the salary-incentive system, expanded employee's career promotion channel, enhanced the business
training for staff and used many other means to excite the potential of the staff, built up a heavy innovation
atmosphere and good institutional environment, thus to shape a good circumstance of good policy for recruiting,
good environment for innovation and good career for talents.
7. Stressing the safety production and promoting the safe development for the enterprise
During the reporting period, the company set up the 2016 Monthly Safe Production Activities of Shenzhen Textile
Group, which closely centered on the topic of “Enhancing the concept of safety production and all staff’s
awareness of safety production”. The company organized the education and training program for safety production,
carried out special item overhaul for hidden danger and carried out the emergency drills, cross inspection and
patrol and discussions and so forth activities, realized the target of zero major safety production accident in the
first half year.
III. Business composition
In RMB
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Increase/decrease Increase/decrease
Increase/decrease
of rincipal of gross profit
of reverue in the
Gross profit business cost over rate over the
Turnover Operation cost same period of
rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
Industry
Domestic and
147,028,287.85 145,291,057.27 1.18% 0.29% 0.21% 0.07%
foreign trade
Manufacturing 360,235,885.09 352,526,259.22 2.14% -15.85% -17.89% 2.43%
Lease and
Management of 44,893,412.62 13,432,381.15 70.08% 0.98% 11.97% -2.93%
Property
Product
Income from
Lease and
44,893,412.62 13,432,381.15 70.08% 0.98% 11.97% -2.93%
Management of
Property
Income from
10,309,561.05 10,406,068.49 -0.94% 36.92% -0.81% 38.40%
textile
Polarizer sheet 370,391,808.49 362,176,353.88 2.22% -15.86% -17.24% 1.64%
Income from
126,562,803.40 125,234,894.12 1.05% -0.34% -0.75% 0.42%
Trading
Area
Domestic 280,793,588.26 261,014,414.19 7.04% 53.74% 62.05% -4.77%
Overseas 271,363,997.30 250,235,283.45 7.79% -37.84% -41.15% 5.20%
IV. Analysis On core Competitiveness
1. Technical Advantage
Shengbo Optoelectronic, with 20 years of operational experience in the polarizer industry, is the state-level of
high-tech enterprise that first enters the development and production of polarizing film in China, has mastered the
core technology of TN, STN and TFT and various product areas, and has owned whole proprietary technology of
polarizer and the proprietary intellectual property rights of various new products that demanded by the customers.
As of June 30, 2016, the company totally has 66 patents, including 13 domestic invention patents, 1 foreign
invention patent, 47 domestic utility models , 5 foreign utility models；47 authorized patents, including 5 domestic
invention patents, 40 domestic utility models and 2 foreign utility models.The company had 2 technology
platforms of “Shenzhen Polarizer Materials and Technology Project Lab”and “Municipal Research and
Development Center”, which emphasized the enforcement of the development and industrialization of polarizer
for LCD’s key production technology, the development and industrialization of polarizer for OLED’s new product
and the nationalized research of polarizer’s raw materials. Through introducing various kinds of precise testing
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
equipments, the company completed bench-scale and pilot-scale test means, perfected reward system of research
and development and built creative platform with synergy of “Production-Teaching-Research-Utilization”to
improve research and development.
2. Talent Advantage
The company has a management team and a senior technical team in the polarizer with strong technical capability,
rich experience and international vision, part of the technical experts have studied the technology in the company
for 20 years, and has become the industry leader. Meanwhile, The company also employed overseas technicians
with advanced experience in polarizer production, built technology management team with mutual complement of
own technical team and external technicians. Through the combination of accumulating technology with
independent innovation and external team’s technological support, the company made itself establish and
accumulate first mover advantages on brand, technology and operation management in domestic polarizer
business area, which formed proprietary technology which is exclusive, combining the process feature of
company’s equipments and aiming at various kinds of product’s complete set.
3. Market Advantage
The company has good domestic and overseas clients. Compared to the foreign advanced counterparts, the biggest
advantage of the company is localization support, which is close to panel market and supported the national policy.
Regarding market development, the company centers in controlling production materials, which extends and
connects purchase with market for establishing quick response mechanism. In addition, the company provides a
series of value-added services to meet the demands for all clients, which helps to form a stable supply chain and
increase market share.
4. Quality Advantage
The company has always adhered to the quality policy of “Meet Customer Demand to Pursuit Excellent Quality”,
and focused on the product quality control. The company has greater advantage in product quality compared with
other similar enterprises. Meanwhile, the company has introduced the modern quality management system and
passed ISO9001 quality management system, ISO14001 environmental management system, OHSAS18000,
QCO80000 system certification, SGS test and ROHS directive environmental protection requirements for the
products. Moreover, the company has standardized whole process from raw materials from supply, manufacturing,
marketing and sales of raw materials to the customer service and ensured the stability of product quality. During
the reporting period, the company has increased the automatic detection identification equipment, strictly
controlled the quality of products and improved the product availability and the product management efficiency.
5. Management Advantage
Shengbo Optoelectrionic has accumulated the rich management experience in the production of polarizing film,
and owned the most advanced process control technology in the production management of polarizer, quality
management technology and stable raw material procurement channels and many other management systems.
During the reporting period, the company has carried out the comprehensive benchmarking works, organized the
management personnel to learn advanced experience from customers and peers, improved the forced management,
optimized the organizational structure of the company, reduced the management layers and further enhanced the
company’s management performance in view of the overseas management experience of polarizer enterprises.
6. Policy Advantage
The polarizer industry belongs to the programs nationally encouraged, which was included in the new emerging
strategic industries to lead the economical and social development in the future. The company’s polarizer project
has, in many times, won the national and provincial policy supporting and funds supporting. The company actively
followed up the introducing work of substitution materials for many kinds of raw materials to further reduce the
production costs and raise the product competiveness.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
V. Analysis on investment Status
I. Foreign Equity investment
（1）External investment
□ Applicable √ Not applicable
There was no foreign investment of the Company in the reorting period.
Other long-term equity investments described:
Shenzhen Xieli Automobile Enterprise Co., Ltd. is a Sino-foreign joint ventures invested and established by
Shenzhen Municipal Light Textile Industry Company processing plant (predecessor company) and the Hong Kong
Xieli Maintenance Company on April 14, 1981. The company invested 1.56 million RMB (50% stake), the
operating period is from April 14, 1981 until April 14, 2008, did not apply for an extension due to the shareholder
dispute, revoke the business sector the company's point of business license in 2014. June 2015, Shenzhen Xieli
Automobile Enterprise Co., Ltd. shareholders agreed to dissolve and liquidate the Company in accordance with
relevant regulations. In November 2015, the Shenzhen Municipal Market Supervisory Authority approved the
filing liquidation group members, liquidation currently underway.
（2）Holding of the equipty in financial enterprises
□ Applicable √ Not applicable
There was no Holding of the equipty in financial enterprises.
（3）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（4）Shareholdings in other listed companies
√ Applicable □Not applicable
Security Security Stock Initial Sharehol Number of Shareholdi Book balance at Gain/Loss Accounting Sour
Number of
category code abbrev investment ding shares held ng the end of the of the items ce of
shares held
iation cost proportio at the end proportion reporting period reporting the
at the
n at the of the at the end (RMB) period share
beginning
beginnin reporting of the s
of the
g of the period reporting
reporting
reporting (shares) period(%
period(shar
period(%
es)
)
Stock 000030 Fawer 8,940,598.3 985,733 0.34% 985,733 0.34% 7,067,705.61 0 Financial Equit
1 assets y deb
available for t
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
sale
II.Information of trust management, derivative investment and entrusted loan
（1）Trust management
□ Applicable √Not applicable
There was no trust management of the Company in the Reporting period.
（2）Derivative investment
□ Applicable √ Not applicable
There was no derivative investment of the Company in the reporting period.
（3）Entrusted loan
□ Applicable √ Not applicable
There was no entrusted loan of the Company in the reporting period.
III.Application of the Raised funds
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Total amount of the raised capital 96,175.1
Total raised capital invested in the report period 57.92
Total accumulative raised capital invested 1,909.82
Amount of raised capital of which the purpose was
30,927.22
changed in the report period
Accumulative amount of raised capital of which the
30,927.22
purpose has been changed
Proportion of raised capital of which the purpose has
32.16%
been changed (%)
Notes to use of raised capital
During the reporting period, the accumulated expenditure of the special account for the raised Capital was RMB 579,200 which
was totally used for the second phase construction of No.6 line project of TFT-LCD polarizer. As of the end of the reporting period,
the cumulative use of the raised capital was RMB 19.0982 million.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
（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 1,
project of polarizer Yes 96,175.1 70,034 57.92 1,909.82 2.73% 0 -- Yes
2017
sheet for TFT-LCD
Subtotal of committeed
-- 96,175.1 70,034 57.92 1,909.82 -- -- 0 -- --
investment projects
Investment orientation for und arising out of plan
None
Total -- 96,175.1 70,034 57.92 1,909.82 -- -- 0 -- --
Situation about not
coming up to schemed
progress or expected Not applicable
revenue and the reason
( in specific project)
According to the latest situation of the industry development, the original second phase construction
scheme of the TFT-LCD polarizer was optimized, and then according to the results concluded by the
experts, the company decided to continue to promote the construction of the No.6 line project. At the same
time, in the light of there was a large funds gap between the actual raised capital and the planned raised
Notes to significant
capital for the second phase project, then by comprehensive considerations of the company’s production
change in feasibility of
line scale and the operation pressure, the company decided to terminate the project of No.7 line, and the
the project
corresponding amount of funds of RMB309.2722 million(including interests) for No.7 line project shall be
changed for permanently supplementing the liquidity. The Proposal on Alteration of the Use of Part of the
Raised Capital for the Second Phase Project of TFT-LCD Polarizer was examined and approved in the 2015
annual shareholder meeting on April 21, 2016.
Amount, application Not applicable
and application
progress of the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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 capita
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Applicable
On March 29, 2016, the Proposal on Using Part of Idle Raised Funds to Temporarily Supplement the
Liquidity was examined and approved in the 20th board meeting of the company’s 6th session board of
Using the idle directors, which agreed with using part of the idle raised funds of the amount of RMB 300,000,000
proceeds to originally for the second phase project of TFT-LCD polarizer to supplement the company’s liquidity, with a
supplement the term of no more than 12 months commenced from the date the board approved the proposal i.e. from
working capital on March 29, 2016 to March 28, 2017. On March 29, 2016, the amount of RMB 150,000,000 was transferred
temporary basis out from Sheng Bo Optoelectronic Co.,Ltd special account for the raised funds to supplement the liquidity.
As the Proposal on Alteration of the Use of Part of the Raised Funds for the Second Phase Project of
TFT-LCD Polarizer was approved in the 2015 annual shareholder meeting on April 21, 2016, the afore-said
funds had been converted into permanently supplementing the liquidity.
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
About application and As of June 30, 2016, the balance of the special account for raised funds was RMB 778,069,100, of which
status of the proceeds RMB 308,000,000 was the structured deposit, RMB 447,995,000 was the smart fixed deposit and the rest
unused was all deposited in the special account for raised funds.
Problems existing in
As of June 30, 2016, the cumulative investment for the second phase of No.6 line project was RMB
application of the
241.634 million which accounted for 34.50% to the total investment of RMB 700.34 million, and there was
proceeds and the
RMB 19.0982 million from the raised funds and RMB 222.5358 million from self-own funds and
information disclosure
governmental funds.
or other issues
17
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
（3）Changes of raised funds projects
√ Applicable □ Not applicable
In RMB
Accumulati Progress of
Whether the
Total on virtual the Whether it
Predicted feasibility
Correspondi amount Virtual amount investment Income has come up
serviceable of the
Project after ng original invested amount input deadline the achieved in to the
condition project
the change committed after input in the deadline the end of the the scheduled
date of changed
project adjustment reporting end of the reporting reporting income
project after the
(1) reporting (%)(3)=(2)/ (Y/N)
alteratio
(2) (1)
Phase-II
project of
polarizer
- 0 0 0 -- -- 0 -- No
sheet for
TFT-LCD
(7 Line)
Total -- 0 0 0 -- -- 0 -- --
In the light of there was a large funds gap between the actual raised funds and the planned
raised funds for the second phase project, then by comprehensive considerations of the
company’s production line scale and the operation pressure, the company terminated the
project of No.7 line, and the corresponding amount of funds of RMB309.2722
Changing reason, decision procedure
million(including interests) for No.7 line project shall be changed for permanently
and statement of disclosure(In specific
supplementing the liquidity. The Proposal on Alteration of the Use of Part of the Raised
project)
Funds for the Second Phase Project of TFT-LCD Polarizer was examined and approved in
the 2015 annual shareholder meeting. Refer to Company Announcement No. 2016-09 and .
Announcement No. 2016-16 on March 25, 2016 and April 22, 2016 at JuChao information
network (http://www.cninfo.com.cn)
Not meet the scheduled progress or
projected benefits, and reasons for that Not applicable
(based on specific project)
Explanation on significant changes in
Not applicable
feasibility of projects
（4）Fund-raising project
Fund-raising project overview Disclosure date Disclosure index
The special Report on situation of 2016 se
Announcement No.:2016-31
mi-annual raise funds on deposit and actual August 26,2016
（http://www.cninfo.com.cn）
usage .
18
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
IV. Analysis on principal subsidiaries and Mutual Shareholding Companies
√Applicable □Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Leading
Company Company Sectors Registered Operating
products Total assets Net assets Tumover Net Profit
Name type engaged in capital profit
and services
Domestic
Shenzhen
Trade,
Lisi 26,485,329. 23,105,563. 3,819,216.3 1,037,860
Subsidiary Lease Property 2,360,000 776,976.90
Industrial 34 20 7 .77
managemen
Co., Ltd.
t
Accommod
Shenzhen
Hotel ation, 31,190,455. 24,348,324. 5,271,952.6 1,510,724
Huaqiang Subsidiary 10,005,300 1,126,980.33
services business 75 15 7 .38
Hotel
center;
Shenfang
Property Property
Property 8,719,573.1 2,664,788.0 5,050,145.1 178,469.1
Subsidiary managemen managemen 1,600,000 133,851.86
Managemen 8 5 8 6
t t
t Co., Ltd.
Production
Shenzhen of fully
Beauty electronic
Textile 39,534,063. 26,149,686. 10,309,561. -3,208,18
Century Subsidiary jacquard 25,000,000 -3,208,449.21
industry 39 12 05 2.97
Garment knitting
Co., Ltd. whole
shape
Shenzhen
Shengbo
Production
Opotoelectr 350,000,00 2,027,384,3 1,455,831,0 370,391,80 -50,958,0 -488,666,956.
Subsidiary Flat display and sales of
ic 0 57.62 61.97 8.49 94.80 37
polarizer
Technology
Co., Ltd
V. Significant projects of investments with non-raised funds
□ Applicable √ Not applicable
The company has no project invested by raised fund in the reporting period.
19
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VI. Performance Forecast for January to September 2016
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or
comparing with the same period of last year, and statement of causations.
□ Applicable √ Not applicable
VII. Explanation of the Board of Directors and the Supervisor Committee concerning the “Non-standard
audit report ” issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
VIII.Explanation by the Board of Directors about the “ non-standard audit report “ for lastyear.
□ Applicable √ Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
period.
□ Applicable √ Not applicable
Previous year’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
into share capital.
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Discussion topics and
Reception time Reception place Way of reception Types of visitors Vistors rece3ived
provision of materials
To know more about the
situation of polarizer
industry and the situation of
the company’s production
6/F, Meeting
Tenbagger and operation, please see
May 12,2016 Roomof the Onsite investigatio Organization
Capital(Beijing) details in “Log of Investor
Company
Relation Activities”posted
on the interactive platform
of investor relation on May
12, 2016.(No.2016-01)
20
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
V. Important Events
I.Administrative position
The company, strictly in accordance with the requirements of The Company Law, Securities Law, Stock Listing
Rules, Guidelines for the Standard Operations for the Main Board Listed Companies and other related regulations
and normative documents, continuously improved the corporate governance structure which was constituted by
general shareholder meeting, board of directors, board of supervisors and management layer. During the reporting
period, there were 1 general shareholder meeting, 4 board meetings of board of directors and 2 meetings of board
of supervisors convened, and the company’s organ of power, decision-making organ, supervision organ and the
management all have standardized operation norms and clear responsibilities, with mutual cooperation and checks
and balances for each other.
As Shenzhen Investment Holding Co., Ltd., the controlling shareholder of the Company, is an enterprise directly
under Shenzhen State-owned Assets Commission, the Company implements relevant regulations of the
controlling shareholder on management of state-owned assets. The non-open information reported to the
controlling shareholders mainly includes: Submit the index report weekly and submit expenses report quarterly,
financial asset statement, deposits and financing loan summary statement. To strengthen the management of
nonpublic information, the company will be strict in controlling the insider’s range and regulate the
information-delivery process, and strictly implement in terms of“Management System of Inside Information
Insider” to avoid the leak of inside information and the occurrence of inside trading activities.
Except this, there was no difference between the actual conditions of corporate governance and the requirements
of the Company Law and relevant regulations of CSRC.
II. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
Other Lawsuits affairs
√ Applicable □Not applicable
Progress of
The oucome and Execution of
Basic situation of Involved Whether to form the
effects of litigation Date of Index of
litigation amount expected litigation(ar
litigation(arbitrati (arbitration)judg disclosure disclosure
(arbitration) (RMB’0000) liability bitration(ar
on) ement
bitration)
On March 6, On July 6, The verdict has no Annual
has been judged March
2014,the company 3,185.79 No 2016, the effect on the Report 2014
31,2015
received the No.28 company company （http://www
21
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
respondent notice received the .cninfo.com.c
issued by Civil n）
Shenzhen Verdict by
Intermediate Shenzhen
People's Court Intermediat
(2014) Foreign e People's
legislation, the Court-(No.2
plaintiff 8-2014
association of Shenzhen
Hong Kong Xieli Intermediat
Automobile Co., e People's
Ltd liability Court
disputes has been Foreign-rela
formally accepted. ted Doc),
The company as and the
the first defendant, claim of the
Shenzhen Xieli plaintiff-Xie
Automobile Co., li
Ltd. was the Maintenanc
second defendant. e Company
The plaintiff was
requested: 1, the overruled
economic loss of by
tort liability by the Shenzhen
total amount of Intermediat
RMB 31.8579 e People's
million ; 2, the Court.
second defendant
involved in joint
liability of the
amount of
compensation; 3,
the litigation fee
paid by two
co-defendants.
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
22
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
V. Transaction in Assets
1. Purchase of assets
□ Applicable √ Not applicable
There is no purchase of assets in the Company during the reporting period.
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
□ Applicable √ Not applicable
There is no Bubiness combination in the Company during the reporting period
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
I. Related-party transactions concerning routine operation
√Applicable □Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of approve
Amount price of of
of the pricing Ratio in approve Date of
Related Relation Type of Price of of trade Way of similar inform
related the similar d disclosu
parties ship trade trade RMB0’ payment trade ation
transacti related trades d re
000 availabl disclos
ons transacti limited e ure
ons （RMB
or not
’0000）
(Y/N)
Shenzhe The
Sale
n Chairm
products Sales of Market
Tianma an of Agreem Bank
to polarizer Principl 81.83 0.22% -- No 81.83 -- --
Microel the ent price transfer
related sheet e
ectronic Compa
parties
s Co., ny was
23
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Ltd. Vece
Chairm
an of
the
compa
ny
Total -- -- 81.83 -- -- -- -- -- -- --
Details of any sales return of a large
Not applicable
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine Not applicable
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the Not applicable
market refernce price (if applicable)
II. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
III. Related-party transitions with joint investments
1. Related-party transactions concerning routine operation
□ Applicable √ Not applicable
The company has no transactions related to daily operations in the reporting period.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
IV. Credits and liabilities with related parties
√Applicable □ Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □ No
24
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Debts receivable from related party
Whether has
Balance at Current Current Current Balance at
non-busines
period-begin newly added recovery interest period-end
Related Relationship Causes s capital Interest rate
（RMB’000 （RMB’000 （RMB’000 （RMB’00 （RMB’00
occupying
0） 0） 0） 00） 00）
or not
The
Shenzhen Chairman of
Tianma the
Sale
Microelectro Company No 34.99 95.75 83.78 46.96
products
nics Co., was Vece
Ltd. Chairman of
the company
Anhui
Huapeng Sharing Contract
No 360 90 450
Textile Co., company fee
Ltd.
Shenzhen
Dailishi Sharing Contract
No 27.72 42.73 70.45
Underwear company fee
Co., Ltd.
Influence of the related
rights of credit and
liabilities upon the
In the report period,Increase investment income of RMB1.3273 million.
company’s operation
results and financial
position
Debts payable from related party
Balance at Current Current Current Balance at
period-begin newly added recovery interest period-end
Related Relationship Causes Interest rate
（RMB’0000 （RMB’0000 （RMB’0000 （RMB’0000 （RMB’0000
） ） ） ） ）
Shenzhen
Xinfang Sharing Current am
24.48 24.48
Knitting Co., company ount
Ltd.
Shenzhen
Xiangjiang Sharing Current am
4 4
Trade Co., company ount
Ltd
25
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Shenzhen
Changlianfa
Sharing Current am
Printing & 91.67 91.67
company ount
dyeing Co.,
Ltd.
Shenzhen
Haohao
Sharing Current am
Property 417.95 35 452.95
company ount
Leasing Co.,
Ltd
Yehui
Sharing Current am
International 113.8 113.8
company ount
Co., Ltd.
Shengbo
Sharing Current am
（HK）Co., 31.5 31.5
company ount
Ltd.
Shenzhen
Shenchao Controlled by
Interest
Technology the same 3,900.06 222.44 4,122.5
payable
Investment party
Co., Ltd.
Indluence of the related
rights of credit and liabilities
upon the company’s In the report period, Increase financial interest expense of RMB 2.2224 million.
operation results and
financial position.
V. Other 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. The interest rate of the entrusted loan is the rate of commercial loans
with a term of 5 years quoted by People's Bank of China minus 2%. In case of adjustment of such commercial
loan rate, the rate of commercial loans with a term of 5 years after adjustment minus 2% shall apply as interest
rate of entrusted loan from the first day of the next month after the adjustment of basic interest rate. The term of
the loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of the
Company.As of June 30,2016,The Company actually received a loan of RMB 120 million.
26
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder and other
related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
IX. Particulars about significant contracts and their fulfillment
I. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was not involved in any lease of the Company in the reporting period.
II. Guarantees provided by the company
□ Applicable √ Not applicable
There was not involved in any guarantees of the Company in the reporting period.
III. Other significant contracts
□ Applicable √ Not applicable
There was no other significant contract of the Company in the reporting period.
27
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
IV. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X.Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
reporting period or such commitments carried down into the reporting period
√Applicable □ Not applicable
Commitment Time of making Peiod of
Commitment Contents Fulfillment
maker commitment commitment
As Shenzhen
Investment
Holdings Co.,
Ltd., the
controlling
shareholder of
the company,
committed when
the
restricted-for-sal
e shares from
the shares
restructuring
were listed for
circulation in the
Shenzhen
market: i. if they
Investment Sustained and Under
Commitment on share reform plan to sell the August 4, 2006
Holdings Co., effective Fulfillment
shares through
Ltd.
the securities
exchange
system in the
future, and the
decrease of the
shares they hold
reaches 5%
within 6 months
after the first
decrease, they
will disclose an
announcement
indicating the
sale through the
company within
28
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
two trading days
before the first
decrease; ii.
They shall
strictly observe
the “Guidelines
on Transfer of
Restricted-for-sa
le 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 assets
replacement
Shenzhen
Investment
Holdings Co.,
Ltd. signed a
“Letter of
Commitment
and Statement
on Horizontal
Competition
Shenzhen Avoidance”
Investment when the October 9, Sustained and Under
Commitments made upon issuance
Holdings Co., company issued 2009 effective Fulfillment
Ltd. non-public
stocks in 2009.
Pursuant to the
Letter of
Commitment
and Statement,
Shenzhen
Investment
Holdings Co.,
Ltd. and its
29
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
wholly owned
subsidiary,
subsidiaries
under control or
any other
companies that
have actual
control of it
shall not be
involved in the
business the
same as or
similar to those
Shenzhen
Textile currently
or will run in the
future, or any
businesses or
activities that
may constitute
direct or indirect
competition
with Shenzhen
Textile; if the
operations of
Shenzhen
Investment
Holdings Co.,
Ltd. and its
wholly owned
subsidiaries,
subsidiaries
under control or
other companies
that have actual
control of it
compete with
Shenzhen
Textile in the
same industry or
contradict the
interest of the
issuer in the
future, Shenzhen
30
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Investment
Holdings Co.,
Ltd. shall urge
such companies
to sell the
equity, assets or
business to
Shenzhen
Textile or a third
party; when the
horizontal
competition may
occur due to the
business
expansion
concurrently
necessary for
Shenzhen
Investment
Holdings Co.,
Ltd. and its
wholly owned
subsidiaries,
subsidiaries
under control or
other companies
that have actual
control of it and
Shenzhen
Textile,
Shenzhen
Textile shall
have priority.
The
commitments
during the
period
Shenzhen
non-public
Investment July 14, Sustained and Under
issuance in
Holdings Co., 2012 effective Fulfillment
2012: 1.
Ltd.
Shenzhen
Investment
Holdings, as the
controlling
31
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
shareholder of
Shenzhen
Textile,
currently hasn't
the production
and business
activities of
inter-industry
competition
with Shenzhen
Textile or its
share-holding
subsidiary. 2.
Shenzhen
Investment
Holdings and its
share-holding
subsidiaries or
other enterprises
owned the actual
control rights
can't be directly
and indirectly on
behalf of any
person,
company or unit
to engage in the
same or similar
business in any
districts in the
future by the
form of
share-holding,
equity
participation,
joint venture,
cooperation,
partnership,
contract, lease,
etc., and ensure
not to use the
controlling
shareholder's
status to damage
32
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
the legitimate
rights and
interests of
Shenzhen
Textile and
other
shareholders, or
to gain the
additional
benefits. 3. If
there will be the
situation of
inter-industry
competition
with Shenzhen
Textile for
Shenzhen
Investment
Holdings and its
share-holding
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
33
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
irrevocable
during Shenzhen
Investment
Holdings as the
controlling
shareholder of
Shenzhen
Textile or
indirectly
controlling
Shenzhen
Textile.
Commitment to
non-public offer
ing during the se
cond phase proje
Shenzhen ct of Shen Textil
Investment e shares subscrib March 25, March 25, Has been
Holdings Co., ed lock handle, l 2013 2016 Fulfilled
Ltd. ocking Shen Tex
tile non-public o
ffering on the st
ock market of 3
6 months.
Other commitments made to minority
shareholders
Executed timely or not Yes
Detailed person for failing to execute and
None
the next plan( If any)
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
XII. Punishment and Rectification
□ Applicable √ Not applicable
There was no any punishment and rectification of the Company in the reporting period.
34
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
√ Applicable □Not applicable
I.The company’s subsidiary-Shengbo Optoelectronic Co.,Ltd’s introducing of strategic investors by the mean of
increasing capital while adding shares
(1) To further enhance the technological level, management level and profit ability of Shengbo Optoelectronic
Co.,Ltd, and for making a stronger and bigger main business of optical film such as polarizer, and based on the
approval in the 22th board meeting of the company’s sixth session board of directors on May16, 2016, the
company agreed with the open introducing of the strategic investors by the mean of increasing capital while
adding shares upon the basis of the equity assessment value of Shengbo Optoelectronic Co.,Ltd, and the company
shall, in accordance with the related requirements of the state-owned asset supervision and company’s internal
control, openly introduced 1-2 strategic investor(s) on Shenzhen United Property Exchange after the performance
of necessary approval procedures. After the completion of increasing capital, the stake proportion held by the
company shall be not less than 51%, while the stake held by the strategic investors shall be not more than 49%
（Refer to Company Announcement No.2016-19）.
(2) By the approval in the 24th board meeting of the company’s six session board of directors on July 1, 2016, it
was agreed that Shengbo Optoelectronic Co.,Ltd shall, upon the price basis was determined by the assessed book
value of net assets of RMB 2028.9588 million as of the assessment reference date of April 30, 2016 and the stake
proportion held by the introduced strategic investors was 40%, openly introduce one strategic investor at the price
not less than assessed value of RMB 1352.6392 million on Shenzhen United Property Exchange and waive the
priority rights of contributing funds to the subscription in such increasing capital while adding shares but finally
through one-to-one competitive negotiation with the strategic investor to determine the price for increasing the
capital（Refer to Company Announcement No.2016-20 and 2016-21）.
II. The status of the progress of the second phase project of TFT-LCD polarizer
(1) Speeded up the construction of No.6 line of phase II project. During the reporting period, the company, in
accordance with the optimized construction scheme of No.6 line project, completed the open tender and the
contract signing for the design and construction of the related engineering and the host equipment, as well as
completed the tender work on part of the public engineering, and the related project constructions are under
process.
(2) Terminated the originally included No.7 line project invested by the raised funds.
In the light of there was a large funds gap between the actual raised funds and the planned raised funds for the
original second phase project of TFT-LCD polarizer(No.6 line project and No.7 line project), then by
comprehensive considerations of the company’s production line scale and the operation pressure, the company
decided to terminate the project of No.7 line, and the corresponding amount of funds of RMB309.2722
million(including interests) for No.7 line project shall be changed for permanently supplementing the liquidity
which needed by the company’s main business. Such alteration had been examined and approved in the 20th board
meeting of the company’s 6th session board of directors and the 2015 annual shareholder meeting（Refer to
Company Announcement No.2016-09 and 2016-16）.
35
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report.
No.
36
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VI. Change of share capital and shareholding of Principal
Shareholders
I.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with conditional 51,527,72 -51,457,97 -51,457,97
10.17% 69,750 0.01%
subscription 6 6 6
2.State-owned legal person 51,457,97 -51,457,97 -51,457,97
10.16% 0 0.00%
shares 6 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 454,994,1 51,457,97 51,457,97 506,452,0
89.83% 99.99%
unconditional subscription 23 6 6 99
405,563,8 51,457,97 51,457,97 457,021,8
1.Common shares in RMB 80.07% 90.23%
73 6 6 49
2.Foreign shares in 49,430,25 49,430,25
9.76% 9.76%
domestic market 0 0
506,521,8 506,521,8
III. Total of capital shares 100.00% 0 0 100.00%
49 49
Reasons for share changed:
√ Applicable □Not applicable
During the reporting period, the restriction term of the 51,457,976 shares which the company non-publicly issued
to the company’s controlling shareholder of Shenzhen Investment Holding Co., Ltd in 2013 was expired, thus it
shall newly add 51,457,976 tradable shares which were free from the restriction and being tradable on March 29,
2016. Refer to Company Announcement No. 2016-03.on March 25, 2016 at JuChao information network
http://www.cninfo.com.cn)
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
37
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In shares
Total number of preferred
Total number of common shareholders that had restored
shareholders at the end of the 33,921 the 0
reporting period voting right at the end of the
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Number os share pledged/frozen
Amount of
Proportion of shares Changes in of
Nuture of un-restricte
Shareholders of shares held at reporting restricted
shareholder d shares State of share Amount
held（%） period period shares
held
-end held
Shenzhen
Investment State-owned legal 234,069,4 234,069,43
46.21% 0 0
Holdings Co., person 36 6
Ltd.
Qianhai Life
insurance Co., Domestic non
20,384,81
Ltd.－Self State-owned 4.02% 0 0 20,384,816
6
funds Huatai Legal person
Portfolio
Shenzhen
Shenchao
State-owned 16,129,03
Technology 3.18% 0 0 16,129,032
Legal person 2
Investment Co.,
Ltd.
Anhui Guofu
Domestic non
Industrial
State-owned 0.73% 3,708,341 0 0 3,708,341
Investment
Legal person
Funds
38
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Mangement
Co., Ltd.
MORGAN
STANLEY &
Foreign Legal
CO. 0.57% 2,900,814 211,350 0 2,900,814
person
INTERNATIO
NAL PLC
Domestic Nature
Sun Huiming 0.48% 2,443,526 11,000 0 2,443,526
person
Domestic Nature
Xia Keyun 0.48% 2,412,192 -616,720 0 2,412,192
person
Shanghai
Chujiang Domestic non
Enterprise State-owned 0.40% 2,050,000 710,991 0 2,050,000
Development Legal person
Co., Ltd.
Beijing Shen
Zhou Mu
Investment
Domestic non
Fund
State-owned 0.36% 1,831,100 1,831,100 0 1,831,100
Management
Legal person
Co., Ltd.－
Hongyamu
Fund
Chongqing
International
Domestic non
Trust Co., Ltd.
State-owned 0.24% 1,210,000 1,210,000 0 1,210,000
－Collective
Legal person
capital trust of
No. 2
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if any )(See
Notes 3)
Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the
Explanation on associated Company did not whether there is relationship between the top ten shareholders holding
relationship or concerted action of non-restricted negotiable shares and between the top ten shareholders holding non-restricted
the above shareholders 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.
39
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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
234,069,436 234,069,436
Ltd. shares
Qianhai Life insurance Co., Ltd.－ RMB Common
20,384,816 20,384,816
Self 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
Foreign shares
MORGAN STANLEY & CO. placed in
2,900,814 2,900,814
INTERNATIONAL PLC domestic
exchange
Foreign shares
placed in
Sun Huiming 2,443,526 2,443,526
domestic
exchange
RMB Common
Xia Keyun 2,412,192 2,412,192
shares
Shanghai Chujiang Enterprise RMB Common
2,050,000 2,050,000
Development Co., Ltd. shares
Beijing Shen Zhou Mu Investment
RMB Common
Fund Management Co., Ltd.－ 1,831,100 1,831,100
shares
Hongyamu Fund
Chongqing International Trust Co.,
RMB Common
Ltd.－Collective capital trust of No. 1,210,000 1,210,000
shares
2
Explanation on associated Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
relationship or consistent action Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this, the
among the top 10 shareholders of Company did not whether there is relationship between the top ten shareholders holding
non-restricted negotiable shares and non-restricted negotiable shares and between the top ten shareholders holding non-restricted
that between the top 10 shareholders negotiable shares and the top 10 shareholders or whether they are persons taking concerted
of non-restricted negotiable shares action defined in Regulations on Disclosure of Information about Shareholding of
and top 10 shareholders Shareholders of Listed Companies.
Explanation on shareholders
participating in the margin trading N/A
business(if any )(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
40
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by
the shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting
period proposed or implemented by the shareholders and act-in-concert persons.
41
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
42
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Amount of Amount of
Number of Number of
shares shares Number of
Shares Shares restricted restricted
increased decreased restricted stock
Office held at the held at the stock granted stock granted
Name Position at the at the granted at the
status year-begin year-endin at the at the
reporting reporting year-ending(shar
(share) g（share） year-begin . reporting
period(sha period(sha e)
share) period(share)
re) re)
Board
chairman,
Zhu Jun In office 0 0 0 0 0 0 0
General
Manager
Wang
Director In office 0 0 0 0 0 0 0
Yongjian
Lin Lebo Director In office 0 0 0 0 0 0 0
Jin Director,C
In office 0 0 0 0 0 0 0
Zhenyuan FO
Zhang Independe
In office 0 0 0 0 0 0 0
Yong nt Director
Shi Independe
In office 0 0 0 0 0 0 0
Weihong nt Director
Independe
He Qiang In office 0 0 0 0 0 0 0
nt Director
Chairman
of the
Wang
supervisor In office 0 0 0 0 0 0 0
Weixing
y
committee
Li Wei Supervisor In office 0 0 0 0 0 0 0
Zhang Employee
In office 0 0 0 0 0 0 0
Xiaodong supervisor
Feng Deputy
In office 0 0 0 0 0 0 0
Junbin GM
43
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Zhu Deputy
In office 93,000 0 0 93,000 0 0 0
Meizhu GM
Secretary
to the
Jiang Peng In office 0 0 0 0 0 0 0
board of
directors
Chao Jin Director Former 0 0 0 0 0 0 0
Total -- -- 93,000 0 0 93,000 0 0 0
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Chao Jin Director Former April 16, 2016 Submitted resignation for personal reasons
44
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
IX. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated balance sheet
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
June 30,2016
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 665,289,686.79 752,314,871.53
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 33,652,411.33 18,841,745.16
Account receivable 202,464,073.42 182,766,372.05
Prepayments 30,050,353.97 7,853,818.19
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 23,730,926.13 30,298,938.80
Dividend receivable
Other account receivable 64,460,893.53 45,133,672.10
45
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Repurchasing of financial assets
Inventories 293,583,314.51 308,775,044.88
Assets held for sales
Non-current asset due in 1 year
Other current asset 421,553,675.47 513,553,675.47
Total of current assets 1,734,785,335.15 1,859,538,138.18
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 40,254,753.07 43,241,524.06
Expired investment in possess
Long-term receivable
Long term share equity investment 23,610,461.07 22,879,269.06
Property investment 182,936,427.69 134,389,963.05
Fixed assets 756,368,065.28 790,019,487.16
Construction in progress 79,066,981.68 75,803,586.70
Engineering material
Fixed asset disposal 3,810.00
Production physical assets
Gas & petrol
Intangible assets 40,053,060.79 40,626,936.34
R & D petrol
Goodwill
Long-germ expenses to be amortized 857,697.49 633,541.50
Differed income tax asset 2,503,160.91 2,262,532.65
Other non-current asset
Total of non-current assets 1,125,654,417.98 1,109,856,840.52
Total of assets 2,860,439,753.13 2,969,394,978.70
Current liabilities
Short-term loans 26,220,880.25 53,866,521.87
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
46
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
current income account
Derivative financial liabilities
Bill payable
Account payable 191,876,704.78 227,528,808.60
Advance payment 44,472,178.76 28,199,415.11
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 20,166,586.08 35,307,822.40
Tax payable 39,082,682.02 14,682,643.09
Interest payable 41,303,674.48 39,088,887.96
Dividend payable
Other account payable 126,923,350.93 125,775,723.80
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
Other current liability
Total of current liability 490,046,057.30 564,449,822.83
Non-current liabilities：
Long-term loan 120,000,000.00 120,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income 97,358,454.18 99,524,165.58
Deferred income tax liability 10,572,975.18 10,851,444.74
Other non-current liabilities
Total non-current liabilities 227,931,429.36 230,375,610.32
Total of liability 717,977,486.66 794,825,433.15
47
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,585,130,057.75 1,585,130,051.37
Less：Shares in stock
Other comprehensive income 1,202,753.29 3,212,187.35
Special reserves
Surplus reserves 70,539,319.86 70,539,319.86
Common risk provision
Undistributed profit -20,931,713.43 9,166,137.97
Total of owner’s equity belong to the
2,142,462,266.47 2,174,569,545.55
parent company
Minority shareholders’ equity
Total of owners’ equity 2,142,462,266.47 2,174,569,545.55
Total of liabilities and owners’ equity 2,860,439,753.13 2,969,394,978.70
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 305,502,993.90 271,582,749.03
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable
Account receivable 607,599.49 819,054.57
Prepayments 1,754,880.00
Interest receivable 19,455,292.34 22,294,015.02
Dividend receivable 7,798,378.51
48
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Other account receivable 73,063,909.49 72,543,709.78
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 60,000,000.00 260,000,000.00
Total of current assets 458,629,795.22 636,792,786.91
Non-current assets：
Disposable financial asset 38,754,753.07 41,741,524.06
Expired investment in possess
Long-term receivable
Long term share equity investment 1,987,834,227.68 1,779,103,035.67
Property investment 175,655,377.41 126,873,096.51
Fixed assets 28,294,231.09 26,579,978.92
Construction in progress 38,792,110.90
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,252,533.06 1,378,688.61
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 3,028,411.89 2,556,126.29
Other non-current asset
Total of non-current assets 2,234,819,534.20 2,017,024,560.96
Total of assets 2,693,449,329.42 2,653,817,347.87
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
49
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Employees’ wage payable 4,670,917.51 7,299,686.80
Tax payable 3,742,712.94 12,558,340.06
Interest payable
Dividend payable
Other account payable 111,812,374.29 77,332,555.09
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 121,276,772.89 98,241,350.10
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 278,469.57
Other non-current liabilities
Total of Non-current liabilities 278,469.57
Total of liability 121,276,772.89 98,519,819.67
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,576,547,075.96 1,576,547,069.58
Less：Shares in stock
Other comprehensive income 1,202,753.29 3,212,187.35
Special reserves
Surplus reserves 70,539,319.86 70,539,319.86
Undistributed profit 417,361,558.42 398,477,102.41
50
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Total of owners’ equity 2,572,172,556.53 2,555,297,528.20
Total of liabilities and owners’ equity 2,693,449,329.42 2,653,817,347.87
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 552,157,585.56 620,993,333.48
Incl：Business income 552,157,585.56 620,993,333.48
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 582,562,825.44 651,213,247.43
Incl：Business cost 511,249,697.64 588,138,026.03
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 3,126,938.03 3,546,620.66
Sales expense 4,516,009.63 5,010,699.03
Administrative expense 46,124,255.12 45,057,284.86
Financial expenses 8,972,817.56 -11,273,185.63
Asset impairment loss 8,573,107.46 20,733,802.48
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 2,267,193.29 47,591,946.43
Incl: investment gains from affiliates 711,998.34 1,029,521.87
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） -28,138,046.59 17,372,032.48
Add ：Non-operational income 2,298,220.41 7,876,949.28
Including：Income from disposal of
300.00
non-current assets
51
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Less：Non business expenses 20,829.78 72,988.56
Incl：Loss from disposal of non-current
20,770.93 72,965.54
assets
IV.Total profit(“-”for loss) -25,860,655.96 25,175,993.20
Less：Income tax expenses 4,237,195.44 17,507,965.25
V. Net profit -30,097,851.40 7,668,027.95
Net profit attributable to the owners of
-30,097,851.40 7,668,027.95
parent company
Minority shareholders’ equity
VI. Other comprehensive income -2,009,434.06 -29,368,461.17
Net of profit of other comprehensive inco
me attributable to owners of the parent co -2,009,434.06 -29,368,461.17
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 -2,009,434.06 -29,368,461.17
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
-2,240,078.24 -29,362,645.46
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
230,644.18 -5,815.71
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
52
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VII. Total comprehensive income -32,107,285.46 -21,700,433.22
Total comprehensive income attributable
-32,107,285.46 -21,700,433.22
to the owner of the parent company
Total comprehensive income attributable
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share -0.06 0.015
(II)Diluted earnings per share -0.06 0.015
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 31,599,060.18 31,527,189.03
Incl：Business cost 5,654,104.32 5,403,557.23
Business tax and surcharge 2,262,341.59 2,501,742.00
Sales expense
Administrative expense 11,602,041.51 11,342,237.91
Financial expenses -7,662,384.78 -8,502,341.69
Asset impairment loss 16,249.72 48,066.44
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 2,267,193.29 46,906,601.48
Incl: investment gains from affiliates 711,998.34 1,029,521.87
II. Operational profit（“-”for loss） 21,993,901.11 67,640,528.62
Add ：Non-operational income 1,807,659.21
Including：Income from disposal of
non-current assets
Less：Non business expenses 13,422.71 13,020.92
Incl：Loss from disposal of non-current
13,422.71 13,020.92
assets
III.Total profit(“-”for loss) 21,980,478.40 69,435,166.91
Less：Income tax expenses 3,096,022.38 16,610,523.73
IV. Net profit（“-”for net loss） 18,884,456.02 52,824,643.18
53
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
V.Net of profit of other comprehensive i
-2,009,434.06 -29,368,461.17
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
assified into profit or loss.
（II）
Other comprehensive income that will b -2,009,434.06 -29,368,461.17
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
-2,240,078.24 -29,362,645.46
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
230,664.18 -5,815.71
ancial statements
6.Other
VI. Total comprehensive income 16,875,021.96 23,456,182.01
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
520,074,236.25 554,835,392.44
rending of services
54
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 44,974,078.38 47,475,737.48
Other cash received from business
33,073,522.35 26,485,839.63
operation
Sub-total of cash inflow 598,121,836.98 628,796,969.55
Cash paid for purchasing of
491,834,135.65 525,580,359.12
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 67,312,097.85 68,305,334.11
Taxes paid 21,995,337.06 16,544,484.93
Other cash paid for business activities 56,296,461.76 14,073,663.39
Sub-total of cash outflow from business
637,438,032.32 624,503,841.55
activities
55
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Cash flow generated by business
-39,316,195.34 4,293,128.00
operation, net
II.Cash flow generated by investing
Cash received from investment
460,000,000.00 45,025,998.56
retrieving
Cash received as investment gains 12,519,210.40 3,097,622.52
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 160.00 300.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 6.38
Sub-total of cash inflow due to
472,519,376.78 48,123,921.08
investment activities
Cash paid for construction of
fixed assets, intangible assets 71,456,688.51 10,618,093.36
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
368,000,000.00 460,057,269.91
activities
Sub-total of cash outflow due to
439,456,688.51 470,675,363.27
investment activities
Net cash flow generated by investment 33,062,688.27 -422,551,442.19
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 192,535,253.62 29,117,865.82
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
192,535,253.62 29,117,865.82
activities
Cash to repay debts 270,594,907.49 71,152,714.60
Cash paid as dividend, profit, or
56
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
270,594,907.49 71,152,714.60
financing activities
Net cash flow generated by financing -78,059,653.87 -42,034,848.78
IV. Influence of exchange rate
944,072.13 336,040.92
alternation on cash and cash equivalents
V.Net increase of cash and cash
-83,369,088.81 -459,957,122.05
equivalents
Add: balance of cash and cash
748,658,775.60 1,098,232,359.02
equivalents at the beginning of term
VI ..Balance of cash and cash
665,289,686.79 638,275,236.97
equivalents at the end of term
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
31,740,661.93 32,013,712.91
rending of services
Tax returned
Other cash received from business
34,427,040.40 12,681,386.83
operation
Sub-total of cash inflow 66,167,702.33 44,695,099.74
Cash paid for purchasing of
2,618,061.41 1,857,076.51
merchandise and services
Cash paid to staffs or paid for staffs 8,966,862.21 7,190,038.46
Taxes paid 15,233,557.86 11,472,508.80
Other cash paid for business activities 3,324,789.03 3,921,092.66
Sub-total of cash outflow from business
30,143,270.51 24,440,716.43
activities
Cash flow generated by business
36,024,431.82 20,254,383.31
operation, net
II.Cash flow generated by investing
Cash received from investment 8,863,114.47 45,025,998.56
57
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
retrieving
Cash received as investment gains 3,097,622.52
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 6.38
Sub-total of cash inflow due to
8,863,120.85 48,123,621.08
investment activities
Cash paid for construction of
fixed assets, intangible assets 2,967,307.80 4,992,831.00
and other long-term assets
Cash paid as investment 208,000,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
260,000,000.00
activities
Sub-total of cash outflow due to
210,967,307.80 264,992,831.00
investment activities
Net cash flow generated by investment -202,104,186.95 -216,869,209.92
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing
IV. Influence of exchange rate
alternation on cash and cash equivalents
58
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
V.Net increase of cash and cash
-166,079,755.13 -196,614,826.61
equivalents
Add: balance of cash and cash
531,582,749.03 457,379,886.16
equivalents at the beginning of term
VI ..Balance of cash and cash
365,502,993.90 260,765,059.55
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
59
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity instrusment Minor Total of
Items
Less: Other Common
Share Capital Specialized Surplus Attributable shareholder owners’
preferred Shares in Comprehen risk
Capital reserves reserve reserves profit s’ equity equity
Sustainab Other
stock stock sive Income provision
le debt
I.Balance at the end of last 506,521,8 1,585,130,0 3,212,187.3 70,539,319. 9,166,137.9 2,174,569,5
year 49.00 51.37 5 86 7 45.55
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the beginning 506,521,8 1,585,130,0 3,212,187.3 70,539,319. 9,166,137.9 2,174,569,5
of current year 49.00 51.37 5 86 7 45.55
III.Changed in the current -2,009,434. -30,097,851 -32,107,279
6.38
year 06 .40 .08
（1）Total comprehensive -2,009,434. -2,009,434.
income 06 06
（II）Investment or
-30,097,851 -30,097,851
decreasing of capital by
.40 .40
owners
60
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
1．Ordinary Shares investe
d by hareholders
2．Holders of other equity
instruments invested capital
3．Amount of shares paid
and accounted as owners’
equity
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
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.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
4. Other
(V). Special reserves
1. Provided this year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the end of 506,521,8 1,585,130,0 1,202,753.2 70,539,319. -20,931,713 2,142,462,2
this term 49.00 57.75 9 86 .43 66.47
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity instrusment Minor Total of
Items
Other Common
share Capital Less: Shares Specialized Surplus Attributable shareholder owners’
preferred Comprehen risk
Capita reserves in stock reserve reserves profit s’ equity equity
Sustainab Other
stock sive Income provision
le debt
I.Balance at the end of last 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
year 49.00 51.37 46 10 3 48.26
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Other
II.Balance at the beginning 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
of current year 49.00 51.37 46 10 3 48.26
III.Changed in the current -30,176,930 6,136,292.7 2,360,934.6 -21,679,702
year .11 6 4 .71
（1）Total comprehensive -30,176,930 8,497,227.4 -21,679,702
income .11 0 .71
（II）Investment or
decreasing of capital by
owners
1．Ordinary Shares investe
d by hareholders
2．Holders of other equity
instruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
(IV) Internal transferring of 6,136,292.7 -6,136,292.7
0.00
owners’ equity 6 6
1. Capitalizing of capital
6,136,292.7 -6,136,292.7
reserves (or to capital 0.00
6 6
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
63
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
surplus reserves.
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of
this term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of 506,521,8 1,585,130,0 3,212,187.3 70,539,319. 9,166,137.9 2,174,569,5
this term 49.00 51.37 5 86 7 45.55
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
Items Other Capital Less: Shares in Specialized Surplus Total of
Attributable
Share cpaital preferred Comprehensiv
Sustainable reserves stock reserve reserves profit owners’ equity
stock e Income
debt
I.Balance at the end of last
506,521,849. 1,576,547,069. 3,212,187.35 70,539,319.86 398,477,102 2,555,297,528.
year
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
00 58 .41 20
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 506,521,849. 1,576,547,069. 398,477,102 2,555,297,528.
3,212,187.35 70,539,319.86
of current year 00 58 .41 20
III.Changed in the current 18,884,456.
6.38 -2,009,434.06 16,875,028.33
year 01
（1）Total comprehensive 18,884,456.
-2,009,434.06 16,875,021.95
income 01
（II）Investment or
decreasing of capital by
owners
1 ． Ordinary Shares investe
d by hareholders
2．Holders of other equity i
nstruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
2．Allotment to the owners
(or shareholders)
3．Other
(IV)Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 6.38 6.38
IV. Balance at the end of 506,521,849. 1,576,547,075. 417,361,558 2,572,172,556.
1,202,753.29 70,539,319.86
this term 00 96 .42 53
Amount in last year
In RMB
Amount in last year
Items Share Other Equity instrusment Capital Less: Shares in Specialized Surplus
Other Attributable Total of
Capital preferred Other reserves stock Comprehensiv reserve reserves profit owners’ equity
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
stock Sustainable e Income
debt
506,521,849. 1,576,547,069. 343,250,467 2,524,111,530.
I.Balance at the end of last 33,389,117.46 64,403,027.10
year 00 58 .52 66
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 506,521,849. 1,576,547,069. 343,250,467 2,524,111,530.
33,389,117.46 64,403,027.10
of current year 00 58 .52 66
III.Changed in the current 55,226,634.
-30,176,930.11 6,136,292.76 31,185,997.54
year 89
（1）Total comprehensive 61,362,927.
-30,176,930.11 31,185,997.54
income 65
（II）Investment or
decreasing of capital by
owners
1 ． Ordinary Shares investe
d by hareholders
2．Holders of other equity i
nstruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
（III）Profit allotment 6,136,292.76 -6,136,292.7
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
6
1.Providing of surplus -6,136,292.7
6,136,292.76
reserves 6
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 end of 506,521,849. 1,576,547,069. 398,477,102 2,555,297,528.
3,212,187.35 70,539,319.86
this term 00 58 .41 20
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
III. Basic Information of the Company
1.Company Profile
(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
polarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen and
reserved high-class textile and garment business.
(3)Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group on August
24,2016.
2.Scope of consolidated financial statements
(1)As of the end of the reporting period, there are 5 subsidiaries companies included in the consolidated financial
statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd.( Shenzhen Shenfang Import & Export Co.,
Ltd. and Shengtou (Hongkong) Co.,Ltd. were a wholly owned subsidiary of Shenzhen Shengbo Optoelectronic
Technology Co., Ltd.), Shenzhen Lisi Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen
Shenfang Property Management Co., Ltd. and Shenzhen Beaufity Garments Co., Ltd.
(2)The scope of consolidated financial statements this period did not change.
IV.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 V, "Significant accounting policies and accounting estimates".
（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.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips: N/A
69
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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
Normalbusiness cycle is realized by the Companyin cash or cash quivalents from the purchase of assets for
mpocessing until.Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities repaid at
maturity within one year as of the balance sheet date shall be classified into the current assets or the current
liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the combination date,
obtains control of another enterprise participating in the combination is the absorbing party, while that other
enterprise participating in the combination is a party being absorbed. Combination date is the date on which the
absorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being
combined at the combination date. The difference between the carrying amount of the net assets obtained and the
carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to
the capital premium in the capital reserve. If the balance of the capital premium is insufficient, any excess is
adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the
combination shall be recognized as an expense through profit or loss for the current period when incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if the relevant
profit and loss, other comprehensive income and other owner equity are confirmed between the ultimate control
date and the 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
70
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
the combining enterprises are not ultimately controlled by the same party or parties both before and after the
business combination.For a business combination not involving enterprises under common control, the party that,
on the acquisition date, obtains control of another enterprise participating in the combination is the acquirer, while
that other enterprise participating in the combination is the acquiree. Acquisition date is the date on which the
acquirer effectively obtains control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquiree
during the merger on the acquisition date, is recognized as the business reputation. While the merger cost is less
than the fair value shares of identifiable net assets obtained by the acquiree during the merger, all the
measurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained by
the acquiree should firstly be rechecked, and the difference shall be recorded into the current profits and costs if
the merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree during the
merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with the
conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additional
information can prove the existence of related information at acquisition date and the expected economic benefits
on the acquisition date arose from deductible temporary difference by the acquiree can be achieved, relevant
income tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall be
recognized as profit of the current period.
For a business combination not involving enterprise under common control, which achieved in stages that
involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of
Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article51 of “Accounting Standards for
Business Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion, to judge the
multiple exchange transations 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 valueoftheacquiree's equity investment before the
acquisition date and the cost of new investment at the acquisition date, as the initial cost of the investment, the
acquiree's equity investment before the acquisition date involved in other comprehensive income, in the disposal
of the investment will be in other comprehensive income associated with the use of infrastructure and the acquiree
directly related to the disposal of assets or liabilities of the same accounting treatment (that is, except in
accordance with the equity method of accounting in the defined benefit plan acquiree is remeasured net changes in
net assets or liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquiree previously held before the acquisition
date re-assessed at the fair value at the acquisition date, with any difference between its fair value and its carrying
amount is recorded as investment income.The previously-held equity interest in the acquiree involved in other
comprehensive income and other comprehensive income associated with the purchase of the foundation should be
used party directly related to the disposal of assets or liabilities of the same accounting treatment (that is, except in
accordance with the equity method of accounting in the acquiree is remeasured defined benefit plans other than
changes in net liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control. Control
is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its
operating activities. The relevant events refer to the activities that have significant influence on the return to the
invested party. In accordance with the specific conditions, the relevant events of the invested party should
conclude the sale and purchase of goods and services, the management of the financial assets, the purchase and
disposal of the assets, the research and development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an enterprise or entity
under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant elements involved
in the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other relevant
information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and
cash flows from the acquisition (the date when the control is obtained) are included in the consolidated income
statement and consolidated statement of cash flows, as appropriated; no adjustment is made to the opening
balance and comparative figures in the consolidated financial statements. Where a subsidiary and a party being
absorbed in a merger by absorption was acquired during the reporting period, through a business combination
involving enterprises under common control, the financial statements of the subsidiary are included in the
consolidated financial statements. The results of operations and cash flow are included in the consolidated
balance sheet and the consolidated income statement, respectively, based on their carrying amounts, from the date
that common control was established, and the opening balances and the comparative figures of the consolidated
financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the
Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’s own
accounting period or accounting policies. Where a subsidiary was acquired during the reporting period through a
business combination not under common control, the financial statements was reconciliated on the basis of the fair
value of identifiable net assets at the date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, are
eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are presented separately
in the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or loss attributable
to minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated income
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
72
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
difference between 1) the total amount of consideration received from the transaction that resulted in the loss of
control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the
former subsidiary’s net assets immediately before the loss of the control is recognized as investment income for
the current period when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or liabilities
are accounted when the control is lost(ie, in addition to the former subsidiary is remeasured at the net defined
benefit plan or changes in net assets and liabilities resulting from, the rest are transferred to the current investment
income). The retained interest is subsequently measured according to the rules stipulated in the - “Chinese
Accounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese Accounting
Standards for Business Enterprises No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity investment until the
loss of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over whether
the transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject
to the following conditions and the economic impact of one or more of cases, usually indicates that several
transactions should be accounted for as a package deal:①these transactions are considered。simultaneously, or in
the case of mutual influence made, ②these transactions as a whole in order to achieve a complete business results;
③the occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look alone is
not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in accordance
with “without losing control over the disposal of a subsidiary part of a long-term equity investments“principles
applicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of the
transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss
of control of the transaction. However, before losing control of the price of each disposal entitled to share in the
net assets of the subsidiary 's investment corresponding to the difference between the disposal, recognized in the
consolidated financial statements as other comprehensive income, loss of control over the transferred together
with the loss of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more partieshave 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, andobligations for the liabilities, relating to the arrangement. A joint venture is a
joint arrangement whereby the Company has rights to the net assets of thearrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business in
terests 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.
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equity investmen
ts .
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having
short holding term (normally will be due within three months from the day of purchase), with strong liquidity and
easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB amount when the
foreign currency transaction is initially recognized. On the balance sheet date, the monetary items of foreign
currency are translated as per the shot exchange rate on the balance sheet date, the foreign exchange conversion
gap due to the exchange rate, except for the balance of exchange conversion arising from special foreign
currency borrowings capitals and interests for the purchase and construction of qualified capitalization assets,
shall be recorded into the profits and losses of the current period. The non-monetary items of foreign currency
measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which
the RMB amount shall not be changed. The non-monetary items of foreign currency measured at the fair value
shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be recorded into the
current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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;
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
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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 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
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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
thathad been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the
cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable
amount less amortized cost, current fair value and any impairment loss on that financial asset previously
recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is
recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial
impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is
recorded in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in
the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably
measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an
unquoted equity instrument shall not be reversed.
4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through
arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has transferred
substantially all the risks and rewards of the asset, or has neither transferred norretained substantially all the risks
and rewards of the asset, but has transferred control of the asset.
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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 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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.
The Client Identifies single amount of accounts receivable that
is not less than RMB 1 million as account receivable that are
Judgment criteria or amount standard of material specific individually significant in amount. The Client Identifies single
amount or amount criterial： amount of accounts receivable that is not less than RMB 0.5
million as account receivable that are individually significant in
amount.
Making an independent impairment test. If any objective
evidence shows that it has been impaired, the
impairment-related losses shall be recognized according to the
gap between its present value of future cash flow less than its
Provision method with material specific amount and
book value, and the several shall be determined to withdraw the
provision of specific bad debt preparation：
bad debt provision. If there exists no the impairment after the
impairment test, they shall be included in a combination of the
receivables with similar risk features so as to withdraw the bad
debt provision.
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2.The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
3－4 years 50.00% 50.00%
4－5 years 50.00% 50.00%
Over 5 years 50.00% 50.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt Provision There is any objective evidence shows that it has been impaired.
The impairment-related losses shall be recognized according to the
Withdrawing Method of Bad Debt Provision gap between its present value of future cash flow less than its book
value.
12.Inventory
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the products in the
process of production, the stuff and material consumed during the process of production or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and Withdrawing Method
of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and the
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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 irrevokable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities, are classifi
ed 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 s
ale, in the operation and the preparation of the financial statements to be able to differentiate the components alo
ne 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;
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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the
period during which the acquisition occurs. For the merger of enterprises not under the same control through
gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two
ways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the
deals as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger,
regard the sum of book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally held by this
enterprise accounted for by weighted equity method, the relevant other comprehensive income shall not be
accounted for temporarily.If the equity investment held originally can be classified as the financial assets for sale,
the difference between the fair value and the book value, and the variation in the accumulative fair value of other
comprehensive returns recorded originally will be transferred into the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legal
services, valuation and consultancy and other administrative expenses, are recognised in profit or loss for the
period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on initial
recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair value
of equity instrument issued, the contract price, the fair value or book value of the assets given away in the case of
non-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost of
acquisition of a long-term equity investment acquired not through business combination also includes all directly
associated expenses, applicable taxes and fees, and other necessary expenses. When the significant impact or the
joint control but non-control on the invested party can be implemented due to the additional investment, the
long-term equity investment cost is the sum of the fair value of the equity investment originally held and the new
investment costs based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significant
influence are accounted for using the equity method. In addition, the Company's financial statements using the
cost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash
dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon
acquisition of the long-term equity investment, investment income is recognized in the period in accordance with
the attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the investor's n
et identifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-ter
m equity investment; the initial investment cost is less than the investee unit 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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
long-term equity investment measured using the equity method is reduced by profit distribution or cash dividends
announced by the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive income and
profit distribution, which is adjusted to capital reserves。The net profit of the investee is adjusted by the fair value
of the investee's identifiable assets as at acquistion. The financial statements and hence the net profit and other
comprehensive income of an investee which does not adopt accounting policies or accounting period uniform with
the Company is adjusted by the Company's accounting policies and accounting period. The Company's share of
unrealised profit or loss arising from related party transactions between the Company and an associate or joint
venture is deducted from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted. Where assets
transferred to an associate or joint venture which form part of the Company's investment in the investee but which
does not enable the Company obtain control over the investee, the cost of the additional investment acquired is
measured at the fair value of assets transferred and the difference between the cost of the additional investment
and the book value of the assets transferred is recognised in profit or loss. Where assets transferred to an associate
or joint venture form an operation, the difference between the consideration received and the book value of the
assets transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture form
an operation, the transaction is accounted for in accordance with CAS 20 - Business Combination, any gain or loss
is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the long-term equity
investment and other net long-term investments in the investees. Where the Company has obligation to share
additional net loss of the investee, the estimatedshare of loss recognised as accrued liabilities and investment loss.
Where the Company has unrecognised share of loss of the investee when the investee generates net profit, the
Company's unrecognised share of loss is reduced by the Company's share of net profit and when the Company's
unrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is recognised as
investment income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of
net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is
not sufficient to absorb the difference, the excess are adjusted against returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the
difference in the net asset between the amount of disposed long-term investment and the amount of the
consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term investment in a
subsidiary involves loss of control over the subsidiary, the related accounting policies in Note applies. For
disposal of long-term equity investments in any situation other than the fore-mentioned situation, the difference
between the book value of the investment disposed and the consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit distribution is
reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part disposal of the
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.
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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 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
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
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The leased buildings of the investment property in the company shall be withdrawn the depreciation by the
service life average method, and the depreciation policy is the same with that of the fixed assets. The land use
rights held and prepared to transfer after appreciation in the investment property shall be amortized by the line
method, and the specific accounting policy is same with that of the intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering labor
service, renting or business management and their useful life is in excess of one fiscal year. The fixed assets can
be recognized when the following requirements are all met: (1) the economic benefits relevant to the fixed assets
will flow into the enterprise. (2) the cost of the fixed assets can be measured reliably.
The fixed assets of the company include the houses and buildings, the decoration of the fixed assets, the
machinery equipment, the transportation equipment, the electronic instrument and other devices.
2．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 4.00% 9.60%-6.86%
equipment
Transportation Straight-line method
8 years 4.00% 12.00%
equipment
Electronic equipment 8 years 4.00% 12.00%
Straight-line method
Other equipment Straight-line method 8 years 4.00% 12.00%
3．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
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purchase the leasing assets, and the made purchase price is expected to be far less than the fair value of the
leasing assets in the implementation of the option. Thus, it can be reasonably recognized that the tenant will
implement the option on the lease date. ③ the ownership of assets is not transferred, but the lease term shall be
the most of the life of the lease assets. ④ the least present value of the lease payment of the tenant and the least
present value of the lease receipts on the lease date almost equal to the fair value of the leasing assets on the lease
date respectively. ⑤ the leasing assets have the special nature, and only the tenant can use if there is no major
modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance leases shall
be bookkept 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.
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（3）When the construction or production meets the intended use or sale of state of capitalization conditions, the
Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the capitalized interest
amount shall be recognized according to the amount of the interest cost for the special borrowings actually
occurred during the current period (including the amortization of discount or premium recognized as per the
effective interest method) minus the interest income acquired after the borrowings deposit in bank or the
investment income obtained from the temporary investment. For the general borrowings for the purchase and
construction of qualified assets, the capitalized interest amount of the general borrowings shall be computed and
recognized according to the weighted average of accumulative asset expense beyond the expense of the special
borrowings, multiplying the capitalization rate of general borrowings.
19.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software, which are
conducted the initial measurement as per the cost.
(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
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service life, and the relevant department that uses the intangible assets, shall conduct the basic review by the
method from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is the
change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized according to the
expected implementation mode of the economic benefits related to the intangible assets during the service life,
and the line method shall be adopted to amortize for the intangible assets unable to reliably recognize the expected
implementation mode. The specific service life is as follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
5 years
Software
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 bookkept as per the actual amount occurred, and shall be averagely
amortize within the benefit period or the specified period. If the long-term unamortized expense can’t make the
benefits for the future accounting period, the amortized value of the unamortized project shall all be transferred
into the current profits and losses.
22.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual short-term
compensation as the liability and record into the current profits and losses or the relevant assets cost as per the
beneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan
according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balance
sheet date during the accounting period, shall be recognized as the liability, and recorded into the current profits
and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and mutually
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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 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.
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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.
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
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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
agr
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of products in
domestic market shall be recognized after the following requirements are met: The company has agreed to deliver
the goods to the purchaser under the contract and the revenue amount of product sales has been determined, the
payment for goods has been withdrawn or the payment vouchers has been obtained and related economic benefits
are likely to inflow, and the costs related to the products can be measured reliably. The revenue of the sale of
products in foreign market shall be recognized after the following requirements are met: The company has made
customs clearance and departure from port under the contract, the bill of landing has obtained and the revenue of
the sale of products has been recognized, the payment for goods has been withdrawn or the payment vouchers has
been obtained and related economic benefits are likely to inflow, and the costs related to the products can be
measured reliably.
25.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other ways, shall be
recognized as the government subsidy related to the assets. The government grants related to assets are recognized
as the deferred income, equally distributed within the service life of the relevant assets, and recorded into the
current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government subsidy other than that related to income acquired by the company shall be recognized as the
government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy shall be divided
into that related to assets and that related to income, and the judgment basis is that: ① if the specific purpose of
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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.
26.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and
the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm
the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable
temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall
recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible
temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in
the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related
to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are
simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the
taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and
the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirm
the tax basis as per the provisions of tax law. The temporary difference can be classified into the taxable
temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company shall
recognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductible
temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities in
the transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference related
to the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements are
simultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) the
taxable income used to offset the deductible temporary difference is possible to be obtained in the future.
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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
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
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Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
undetermined fiancé expense 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
（2）Change of main accounting estimations
□Applicable √Not applicable
VI.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
Selling goods or providing taxable
VAT 3%、5%、6%、17%
labor services
Business tax. The taxable tumover 5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Taxable income 15%、25%
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
Name of taxpayer Income tax rates
Shenzhen Shengbo Optoelectronic Technology Co., Ltd 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,From August 14, 2013 to August 13, 2016, The
enterprise income tax rate of this year is 15%.
96
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 12,995.11 8,872.71
Bank deposit 602,045,962.06 750,353,139.33
Other monetary funds 63,230,729.62 1,952,859.49
Total 665,289,686.79 752,314,871.53
Including : The total amount of deposit
1,746,567.52 31,258,353.11
abroad
2.Derivative financial assets
□ Applicable √ Not applicable
3.Note receivables
1. Classification Note receivable
In RMB
Items
Year-end balance Year-beginning balance
Bank acceptance 33,652,411.33 18,841,745.16
Total 33,652,411.33 18,841,745.16
2.Notess dedoresment or discount and undue on balance sheet date
In RMB
Items Amount derecognition at period –end Amount nt derecognition at period-end
Bank acceptance 45,535,034.06 28,800,228.87
Total 45,535,034.06 28,800,228.87
4. Account receivable
1.Classification accojunt receivables.
In RMB
97
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Accounts receivable
of individual
significance and 6,373,03 4,035,78 2,337,254 6,373,0 4,035,782 2,337,254.0
2.86% 63.33% 3.16% 63.33%
subject to individual 6.66 2.60 .06 36.66 .60 6
impairment
assessment
Accounts receivable
subjecttoimpairme
nt assessment by 209,988, 11,037,4 198,950,7 189,029 9,776,480 179,253,06
94.33% 5.26% 93.74% 5.17%
credit risk 227.91 66.06 61.85 ,540.68 .20 0.48
characteristics of a
portfolio
Accounts receivable
of individual
insignificance but 6,259,76 5,083,70 1,176,057 6,259,7 5,083,708 1,176,057.5
2.81% 81.21% 3.10% 81.21%
subject ot individual 5.85 8.34 .51 65.85 .34 1
impairment
assessment
222,621, 20,156,9 202,464,0 201,662 18,895,97 182,766,37
Total 100.00%
030.42 57.00 73.42 ,343.19 1.14 2.05
Accounts receivable of individual significance and subject to individual impairment assessment.
√ applicable □ Not applicable
In RMB
Amount in year-end
Debtor
Account receivable Bad debt provision Rate of alloance(%) 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.
Dongguan Yaxing 3,255,542.75 1,627,771.37 50.00% Beyond the credit period
98
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Semiconductor Co., Ltd. for a long time, uncertain
recovered.
Total 6,373,036.66 4,035,782.60 -- --
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
204,705,684.10 10,235,284.21 5.00%
1-2 years 4,531,250.65 453,125.07 10.00%
2-3 years 132,948.96 39,884.69 30.00%
Over years 618,344.20 309,172.10 50.00%
Total 209,988,227.91 11,037,466.06
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 1,272,115.08 ; The acmount collected or switches back amounting to RMB
11,129.22.
（3）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
First Goods 75,605,593.52 Within 1 year 33.96 3,780,279.68
Second Goods 18,381,380.72 Within 1 year 8.26 919,069.04
Third Goods 9,441,552.59 Within 1 year 4.24 472,077.63
Fourth Goods 8,143,745.25 Within 1 year 3.66 407,187.26
Fifth Goods 6,972,576.91 Within 1 year 3.13 348,628.85
Total 118,544,848.99 53.25 5,927,242.45
99
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
5.Prepayments
1．Disclosure by age
In RMB
Balance in year-end Balance in year-begin
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 26,898,026.98 89.51% 5,027,361.20 64.01%
1-2 years 1,566,890.99 5.21% 1,033,416.99 13.16%
2-3 years 1,554,890.00 5.17% 1,754,880.00 22.34%
Over 3 years 30,546.00 0.10% 38,160.00 0.49%
Total 30,050,353.97 -- 7,853,818.19 --
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
First 7,266,310.97 24.18%
Second 4,280,272.24 14.24%
Third 2,000,000.00 6.66%
Fourth 1,584,298.97 5.27%
Fifth 1,551,280.38 5.16%
Total 16,682,162.56 55.51%
6.Interest receivable
1.Category of interest receivable
In RMB
Items Amount in year-end Amount in year-beginng
Fixed deposit interest 12,904,469.13 16,472,409.43
Structure deposit interest 10,826,457.00 13,826,529.37
Total 23,730,926.13 30,298,938.80
100
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
7.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other accounts
receivable of
individual
11,981,4 11,981,4 11,981, 11,981,46
significance and 14.53% 100.00% 0.00 19.67% 100.00%
64.60 64.60 464.60 4.60
subject to individual
impairment
assessment
Other accounts
receivable subject
to impairment
69,990,1 5,529,21 64,460,89 48,425, 3,292,063 45,133,672.
assessment by 84.85% 7.90% 79.49% 6.80%
12.41 8.88 3.53 735.21 .11 10
credit risk
characteristics of a
portfolio
Other accounts
receivable of
individual
511,820. 511,820. 511,820 511,820.7
insignificance but 0.62% 100.00% 0.00 0.84% 100.00%
77 77 .77 7
subject to individual
impairment
assessment
82,483,3 18,022,5 64,460,89 60,919, 15,785,34 45,133,672.
Total 100.00% 100.00%
97.78 04.25 3.53 020.58 8.48 10
Other receivable accounts with large amount and were provided had debt provisions individually at end of
period.
√ Applicable □ Not applicable
In RMB
Amount in year-end
Debtor
Other account receivable Bad debt provision Rate of alloance(%) Reason for allowance
Jiangxi Xuanli String 11,389,044.60 11,389,044.60 100.00% No executable property,
101
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within item 1 year
Subtotal within 1 year 52,981,455.22 2,649,072.76 5.00%
1-2 years 12,897,733.63 1,289,773.36 10.00%
2-3 years 2,325,445.12 697,633.54 30.00%
Over 3 years 1,785,478.44 892,739.22 50.00%
Total 69,990,112.41 5,529,218.88
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□ Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□ Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was 1,968,711.63, the acount collected or switches back amounting to RMB
907,806.16.
This period is important for the return or recovery of bad debts
In RMB
Name Amount Way
Shenzhen State Taxation Bureau 907,806.16 Export rebate
Total 907,806.16 --
（3）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
102
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
The equity transfer 2,276,015.00 2,276,015.00
Export rebate 17,391,551.55 37,916,465.75
Unit account 15,804,560.33 16,318,999.87
Deposit 39,043,603.65 2,024,236.32
Reserve fund and staff loans 1,125,651.37 968,214.01
Other 6,842,015.88 1,415,089.63
Total 82,483,397.78 60,919,020.58
（4）Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end
Bad debt provision
Name Nature Closing balance Aging balance of the
of year-end balance
accounts
receivable(%)
1,952,180.18
Second Export rebate 17,391,551.55 Within 1 year 21.08% 869,577.58
Third Unit account 11,389,044.60 Over 3 years 13.81% 11,389,044.60
Unit account 1,800,000.00 Within 1 year 2.18% 90,000.00
Fourth 1,800,000.00 2-3 years 2.18% 540,000.00
Fifth Unit account 592,420.00 Over 3 years 0.72% 592,420.00
Total -- 72,016,619.80 -- 15,433,222.36
8.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 130,626,723.11 11,252,693.29 119,374,029.82 150,409,810.60 14,406,278.95 136,003,531.65
Processing
9,098,633.93 652,923.73 8,445,710.20 6,871,382.66 493,094.77 6,378,287.89
products
Finished product 204,781,887.30 39,018,312.81 165,763,574.49 219,207,543.28 52,814,317.94 166,393,225.34
103
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Total 344,507,244.34 50,923,929.83 293,583,314.51 376,488,736.54 67,713,691.66 308,775,044.88
（2）Inventory Impairment provision
In RMB
Increased in current period Decreased in current period
Year-beginning
Items Year-end balance
balance Provision Other Transferred back Other
Raw materials 14,406,278.95 3,153,585.66 11,252,693.29
Processing
493,094.77 159,828.96 652,923.73
products
Finished product 52,814,317.94 140,265.18 13,936,270.31 39,018,312.81
Total 67,713,691.66 300,094.14 17,089,855.97 50,923,929.83
9.Other current assets
In RMB
Items
Year-end balance Year-beginning balance
Structural Deposit 368,000,000.00 460,000,000.00
After the deduction of input VAT 53,553,675.47 53,553,675.47
Total 421,553,675.47 513,553,675.47
10.Available-for-sale financial assets
(1)Available-for-sale financial assets
In RMB
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
76,944,741.58 36,689,988.51 40,254,753.07 79,931,512.57 36,689,988.51 43,241,524.06
instruments
Measured by fair value 7,067,705.61 7,067,705.61 10,054,476.60 10,054,476.60
Measured by cost 69,877,035.97 36,689,988.51 33,187,047.46 69,877,035.97 36,689,988.51 33,187,047.46
Total 76,944,741.58 36,689,988.51 40,254,753.07 79,931,512.57 36,689,988.51 43,241,524.06
(2)Available-for-sale financial assets measured by fair value at the period-end
In RMB
104
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Type of financial assets Equity instrument Debt instrument
Total
available for sale available for sale available for sale
Fair value at the end 7,067,705.61 7,067,705.61
Changes in the amount of
the cumulative fair value
2,240,078.24 2,240,078.24
recognized in other com
prehensive income
3. Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Increased Decreased Period-end
in in among the reporting
investees period
Shenzhen
Jintian
14,831,681 14,831,681 14,831,681 14,831,681
Industry 3.68%
.50 .50 .50 .50
（Group）
Co., Ltd.
Shenzhen
Jiafeng 16,800,000 16,800,000 16,800,000 16,800,000
10.80%
Textile .00 .00 .00 .00
Co., ltd.
Shenzhen
Guanhua
5,491,288. 5,491,288. 5,058,307. 5,058,307.
45.00%
Prnting & 71 71 01 01
dyeing
Co., Ltd.
Shenzhen
Union
2,600,000. 2,600,000.
2.87%
Developm 00 00
ent Group
Co., Ltd
Shenzhen
Xiangjiang 160,000.00 160,000.00 20.00%
Trade Co.,
105
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Ltd.
Shenzhen
Xinfang
524,000.00 524,000.00 20.00% 80,000.00
Knitting
Co., Ltd.
Shenzhen
Dailisi 2,559,856. 2,559,856.
30.00%
26 26
Knitting
Co., Ltd.
Anhui
Huapeng 25,410,209 25,410,209
50.00%
.50 .50
Textile
Co., Ltd.
Shenzhen
South 1,500,000. 1,500,000.
9.84%
Textile 00 00
Co., Ltd.
69,877,035 69,877,035 36,689,988 36,689,988
Total -- 80,000.00
.97 .97 .51 .51
4.Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Avaliable for sale equity Avaliableforsale debts
Category Total
instruments instruments
Impairment amount at
36,689,988.51 36,689,988.51
the beginning period
Impairment amount at
36,689,988.51 36,689,988.51
the end of period
5. Fair value of equity instrument available for sale sharply declined or other-than-temporary declined at
period-end without depreciation reserves accrual
In RMB
Falling time
Items Investment cost Fair value Decline range Amount Reason
（Month）
106
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
11. Long-term equity investment
In RMB
Increase/decrease
Closing
Adjustme
Cash Withdraw balance
Gains/los nt of
Opening Add Investme Chinges bonus or al of Closing of
Investees s of other
balance investmen nt of other profits impairme Other balance impairme
Investme comprehe
t decreased eqiuty announce nt nt
nt nsive
d to issue provision provision
income
I. Joint venture
Shenzhen
Haohao
4,397,840 347,953.3 4,745,794
Property
.88 5 .23
Leasing
Co., Ltd.
Shenzhen
Xieli
4,061,958 181,746.4 4,243,705 266,654.9
Automobi
.96 8 .44 9
le Co.,
Ltd.
8,459,799 529,699.8 8,989,499 266,654.9
Subtotal
.84 3 .67 9
2. Affiliated Company
Shenzhen
Changlian
fa 1,871,377 1,938,153
66,776.03
.09 .12
Printing
& dyeing
Company
Jordan
3,384,014 -557,748. 2,894,031
67,765.60
Garment .49 24 .85
Factory
Hongkon
g Yehui 9,430,732 673,270.7 162,878.5 -211,450. 10,055,43
.63 2 8 51 1.42
Internatio
nal Co.,
107
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Ltd.
14,686,12 182,298.5 230,644.1 -211,450. 14,887,61
Subtotal
4.21 1 8 51 6.39
23,145,92 711,998.3 230,644.1 -211,450. 23,877,11 266,654.9
Total
4.05 4 8 51 6.06 9
Other notes
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector. Shareholders agreed to
dissolve and liquidate the Company in accordance with the relevant provisions. Currently the company is under
liquidation.
108
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
12.Investment real estate
（1）Measured by the cost of investment in real estate
√ Applicable □Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
252,285,892.54 252,285,892.54
period-beginning
2.Increase in the current
52,051,000.00 52,051,000.00
period
(1) Purchase
（ 2 ） Inventory\Fixed
assets\ Transferred from 52,051,000.00 52,051,000.00
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end 304,336,892.54 304,336,892.54
II.Accumulated
amortization
1.Opening balance 117,895,929.49 117,895,929.49
2.Increased amount ofthe
3,504,535.36 3,504,535.36
period
(1) Withdrawal 3,504,535.36 3,504,535.36
3.Decreased amount of
the period
（1）Dispose
（2）Other out
109
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
4. Balance at
121,400,464.85 121,400,464.85
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period
182,936,427.69 182,936,427.69
-end
2.Book value at
134,389,963.05 134,389,963.05
period-beginning
（2）Investment real estate by fair value
□ Applicable √ Not applicable
（3）Investment real estate without certificate of ownership
In RMB
Items Book value Reason for certificate not granted
Need to improve the relevant accreditation
Guanhua Building 52,021,000.00
information
13. Fixed assets
（1）Fixed assets
In RMB
Machinery
Items Houses & buildings Transportations Other Total
eqiupment
110
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
I. Original price
1.Opening
490,052,012.48 652,172,073.90 3,691,157.72 19,463,252.46 1,165,378,496.56
balance
2.Increased amount
2,759,267.00 155,128.22 1,004,829.75 3,919,224.97
ofthe period
(1) Purchase 2,759,267.00 155,128.22 1,004,829.75 3,919,224.97
(2) Transferred fro
m construc
tion in pro
gress
(3)Increased of
Enterprise
Combination
3. Decrease in the
168,760.34 168,760.34
current period
（1）Disposal 168,760.34 168,760.34
4. Balance at
period-end
II.Accumulated
amortization
1. Balance at
84,904,035.93 275,623,640.07 2,728,973.22 12,102,360.18 375,359,009.40
period-beginning
2. Increase in the
7,708,745.49 28,959,252.95 146,769.36 775,695.40 37,590,463.20
current period
(1) Withdrawal 7,708,745.49 28,959,252.95 146,769.36 775,695.40 37,590,463.20
3. Decrease in the
44,557.28 144,019.41 188,576.69
current period
（1）Disposal 44,557.28 144,019.41 188,576.69
4. Balance at
period-end
III. Impairment
provision
111
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
1. Balance at
period-beginning
2.Increased
amount of the period
(1) Withdrawal
3. Decrease in the
current period
（1）Dispose
4. Balance at
period-end
IV.Book value
1.Book value at
400,243,055.34 347,744,309.10 815,415.14 7,565,285.70 756,368,065.28
period -end
2.Book value at
405,147,976.55 376,548,433.83 962,184.50 7,360,892.28 790,019,487.16
period-beginning
2.Fixed assets with un-completed property certificates
In RMB
Items Book Value Reasons for un-completed certificate
TFT-LCD polarizing film project phase I1 fixed
Company has submitted materials on 7
296,998,079.44
assets of houses and buildings June 2016，July 23 began publicity.
14.Project under construction
（1）Project under construction
In RMB
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
polarizing film II 79,066,981.68 79,066,981.68 36,212,078.79 36,212,078.79
project (6 line)
Guanhua
39,004,527.58 39,004,527.58
Building Project
112
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Other 586,980.33 586,980.33
Total 79,066,981.68 79,066,981.68 75,803,586.70 75,803,586.70
（2）Changes of significant construction in progress
In RMB
Includin
Capitalis g：
Amount Transferr ation of Current Capitalis
Increase Balance
at year ed to Other Proporti Progress interest amount ation of Source
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest of funds
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
TFT-LC
D
polarizin 700,340, 36,212,0 42,854,9 79,066,9 Share
11.29% 11.29%
g film II 000.00 78.79 02.89 81.68 Capital
project
(6 line)
700,340, 36,212,0 42,854,9 79,066,9
Total -- -- --
000.00 78.79 02.89 81.68
15.Liquidation of fixed assets
In RMB
Items End of term Beginning of term
Counterfeit Detector and Longhua solar
3,810.00 0.00
water heater cleanup scrapped
Total 3,810.00
16.Intangible assets
（1）List of intangible assets
In RMB
Non-patent
Items Land use right Patent Total
Technology
I. Original price
1.Opening
48,765,130.50 11,825,200.00 1,938,280.00 62,528,610.50
balance
113
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
2.Increased
amount ofthe
period
(1) Purchase 15,800.00 15,800.00
(2)Internal
Development
(3)Increased of
Enterprise
Combination
3.Decreased amount
of the period
（1）Disposal
4. Balance at
48,765,130.50 11,825,200.00 1,954,080.00 62,544,410.50
period-end
II.Accumulated
amortization
1. Balance at
9,383,309.73 11,825,200.00 693,164.43 21,901,674.16
period-beginning
2. Increase in the
current period
(1) Withdrawal 468,269.64 121,405.91 589,675.55
3.Decreased amount
of the period
（1）Disposal
4. Balance at
9,851,579.37 11,825,200.00 814,570.34 22,491,349.71
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
114
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
3.Decreased amount
of the period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
38,913,551.13 1,139,509.66 40,053,060.79
period -end
2.Book value at
39,381,820.77 1,245,115.57 40,626,936.34
period-beginning
17.Goodwill
（1）Original book value of goodwill
In RMB
Amount at Amount at
Name Increase in the current period Decrease in the current period
period-beginning period-end
Shenzhen Beauty
Century Garment 2,167,341.21 2,167,341.21
Co., Ltd.
Shenzhen
Shenfang Import
82,246.61 82,246.61
and Export Co.,
Ltd.
Shenzhen
Shengbo
Ophotoelectric 9,614,758.55 9,614,758.55
Technology Co.,
Ltd
Total 11,864,346.37 11,864,346.37
（2）Impairment of goodwill
In RMB
Balance in Balance in
Investee Increased at this period .Decreased at thisperiod
year-begin year-end
115
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Shenzhen Beauty
Century Garment 2,167,341.21 2,167,341.21
Co., Ltd.
Shenzhen
Shenfang Import
82,246.61 82,246.61
and Export Co.,
Ltd.
Shenzhen
Shengbo
Ophotoelectric 9,614,758.55 9,614,758.55
Technology Co.,
Ltd
Total 11,864,346.37 11,864,346.37
18.Long term amortize expenses
In RMB
Amortized expenses
Increase in this
Items Balance in year-begin Other loss Balance in year-end
period
Renovation fee 349,029.34 117,500.33 231,529.01
Other 284,512.16 377,760.00 36,103.68 626,168.48
Total 633,541.50 377,760.00 153,604.01 857,697.49
19.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
8,649,341.96 2,162,335.49 7,334,802.71 1,833,700.67
reserves
Unattained internal sales
1,363,301.68 340,825.42 2,858,879.80 428,831.98
profits
Total 10,012,643.64 2,503,160.91 10,193,682.51 2,262,532.65
116
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
(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
Changes in fair value of
financial assets available 1,113,878.29 278,469.57
for sale
Stock equity disposition
of the temporary taxable
42,291,900.69 10,572,975.17 42,291,900.69 10,572,975.17
difference and the
taxable income
Total 42,291,900.69 10,572,975.17 43,405,778.98 10,851,444.74
(3)Details of un-recognized deferred income tax assets
In RMB
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
2,503,160.91 2,262,532.65
assets
Deferred income
10,572,975.18 10,851,444.74
liabilities
（4）Details of unrecognied deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 71,675,618.95 85,512,740.17
Deductible loss 544,272,752.97 495,605,796.60
Total 615,948,371.92 581,118,536.77
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
117
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Year Balance in year-end Balance in year-begin Remark
2017 134,292,559.16 134,292,559.16
2018 129,226,944.33 129,226,944.33
2019 148,095,898.11 148,095,898.11
2020 83,990,395.00 83,990,395.00
2021 48,666,956.37
Total 544,272,752.97 495,605,796.60 --
20. Short-term loan
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beinning
Credit loans 26,220,880.25 53,866,521.87
Total 26,220,880.25 53,866,521.87
21.Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 186,167,237.39 221,732,534.76
1-2 years 289,614.18 339,044.59
2-3 years 64,917.00 64,917.00
3-4 years 187,643.43 187,643.43
4-5 years 45,765.20 38,046.00
Over 5 years 5,121,527.58 5,166,622.82
Total 191,876,704.78 227,528,808.60
（2）Significant accounts payable that aged over one year
In RMB
The reason for not repaid or carried forwar
Items Balance in year-end
d
118
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Will Taco Corporation 5,089,267.83 Quality dispute
Total 5,089,267.83 --
22. Advance account
（1）Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 43,718,167.18 27,505,005.53
1-2 years 104,763.00 45,161.00
2-3 years 10,224.00 10,224.00
3-4 years
4-5 years
Over 5 years 639,024.58 639,024.58
Total 44,472,178.76 28,199,415.11
23.Payable Employee wage
(1)Payable Employee wage
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term employee
34,557,822.40 53,140,531.56 67,607,118.08 20,091,235.88
benefits
II. Post-employment
750,000.00 4,741,238.89 5,415,888.69 75,350.20
benefits
III. Termination benefit 57,400.00 57,400.00
Total 35,307,822.40 57,939,170.45 73,080,406.77 20,166,586.08
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
32,992,129.09 45,232,258.41 59,805,727.35 18,418,660.15
allowances and subsidies
2.Employee welfare 3,054,018.97 3,054,018.97
119
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
3. Social insurance
848,505.26 848,505.26
premiums
Including：Medical
697,095.73 697,095.73
insurance
Work injury insurance 48,052.73 48,052.73
Maternity insurance 103,356.80 103,356.80
4. Public reserves for
2,910,218.16 2,910,218.16
housing
5.Union funds and staff
1,565,693.31 1,095,530.76 988,648.34 1,672,575.73
education fee
Total 34,557,822.40 53,140,531.56 67,607,118.08 20,091,235.88
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
3,895,001.94 3,895,001.94
insurance premiums
2.Unemployment
126,400.07 126,400.07
insurance
3. Annuity payment 750,000.00 719,836.88 1,394,486.68 75,350.20
Total 750,000.00 4,741,238.89 5,415,888.69 75,350.20
24.Tax Payable
In RMB
Items At end of term At beginning of term
VAT 32,808,483.37 135,460.12
Business Tax 18,017.11 510,707.45
Enterprise Income tax 3,871,296.55 12,570,466.83
Individual Income tax 876,296.51 480,334.74
City Construction tax 30,580.16 31,836.84
House property Tax 966,223.72 750,607.19
Education surcharge 22,066.84 22,964.43
Other 489,717.76 180,265.49
Total 39,082,682.02 14,682,643.09
120
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
25.Interest Payable
In RMB
Items At end of term At beginning of term
Interest on long-term borrowings payable 41,225,070.20 39,000,625.75
Interest on short-term borrowings 78,604.28 88,262.21
Total 41,303,674.48 39,088,887.96
26.Other payable
（1）Disclosure by nature
In RMB
Items At end of term At beginning of term
Engineering Equipment fund 47,560,714.48 59,222,758.80
Unit account 25,818,977.41 24,819,916.41
Deposit 23,947,245.97 19,151,806.04
Drawing expenses 2,831,312.63 2,879,640.37
Other 26,765,100.44 19,701,602.18
Total 126,923,350.93 125,775,723.80
27.Non-currentliabilitiesdue within 1 year
In RMB
Items At end of term At beginning of term
Long-term borrowings due with in 1year 0.00 40,000,000.00
Total 40,000,000.00
28.Long-term borrowings
（1）Long-term term borrowings
In rmb
Items At end of term At beginning of term
Credit borrowings 120,000,000.00 120,000,000.00
121
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Total 120,000,000.00 120,000,000.00
29.Deferred income
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Govemment Subsidy 99,524,165.58 2,165,711.40 97,358,454.18
Total 99,524,165.58 2,165,711.40 97,358,454.18 --
Details of govemment subsidy：
In RMB
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
1,000,000.02 1,000,000.02 Related to assets
funds
High-tech
Industrialization
800,000.00 100,000.00 700,000.00 Related to assets
demonstration
projects
National grant
fundsfor new flat
4,000,000.00 500,000.00 3,500,000.00 Related to assets
panel display
industry
Borrowing
967,777.64 120,972.24 846,805.40 Related to assets
discount
Grant funds for
TFT-LCD
8,233,333.34 649,999.98 7,583,333.36 Related to assets
polarizer industry
project
Grant funds for
TFT-LCD
polarizer narrow 3,500,000.00 250,000.02 3,249,999.98 Related to assets
line (line 5)
project
Purchase of
1,202,287.38 87,545.10 1,114,742.28 Related to assets
importedequipme
122
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
nt and technology
Innovation and
venture capital
350,000.00 25,000.02 324,999.98 Related to assets
for TFT-LCD
polarier project
Shenzzhen
Engineering
laboratory
polarizing 462,500.00 25,000.02 437,499.98 Related to assets
material and
technical
engineeting
Shenzhen
polarizingmateria
4,625,000.00 250,000.02 4,374,999.98 Related to assets
l and technical
engineering
Capital funding
for Technology 2,775,000.00 150,000.00 2,625,000.00 Related to assets
Center
Subsidy funds to
support the
introduction of a 100,716.70 7,194.00 93,522.70 Related to assets
dvanced technolo
gy
Grant funds for
TFT-LCD
polarizer narrow 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 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 500,000.00 500,000.00 Related to assets
line (line 6)
project
Imported
857,705.00 857,705.00 Related to assets
equipment and
123
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
technology of
discount interest
funds
key technology
research and deve
lopment projects
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 Related to assets
fund of
Guangdong
Province
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 149,845.50 149,845.50 Related to assets
grant funds
Total 99,524,165.58 2,165,711.40 97,358,454.18 --
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
RMB0, 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 100,000.00 and the balance amount of unfinished final amortization is RMB
700,000.00.
124
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
(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 RMB500,000.00, the balance amount of
unfinished final amortization is RMB 3,500,000.00;
（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 120,972.24 and the balance amount of unfinished final
amortization is RMB846,805.40.
（5）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 RMB649,999.98. and the balance
amount of unfinished final amortization is RMB7,583,333.36.
（6）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
RMB250,000.02 and the balance amount of unfinished final amortization is RMB3,249,999.98.
（7）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 RMB87,545.10 and the
balance amount of unfinished final amortization is RMB1,114,742.28.
（8）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 RMB25,000.02 and the balance amount of
unfinished final amortization is RMB324,999.98.
125
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
（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 RMB250,000.02 and the balance amount
of unfinished final amortization is RMB437,499.98.
（10）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
RMB250,000.02 and the balance amount of unfinished final amortization is RMB4,374,999.98.
（11）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 RMB150,000.00 and the balance amount of unfinished final
amortization is RMB2,625,000.00.
(12)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
RMB7,194.00 and the balance amount of unfinished final amortization is RMB93,522.70.
（13）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.
（14）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.
（15）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
126
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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;
（16）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.
(17) 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.
(18) 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.
(19) 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.
(20) 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
30.Stock capital
In RMB
Changed（+，-）
Balance in Capitalization Balance in
Issuance of
year-begin Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
506,521,849.00 506,521,849.00
shares
31.Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
127
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Share premium 1,574,407,414.34 1,574,407,414.34
Other 10,722,637.03 6.38 10,722,643.41
Total 1,585,130,051.37 6.38 1,585,130,057.75
Other notes：
Dividend income piecemeal shares over the years.
32.Other Comprehensive income
In RMB
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
2.Other comprehensive income
-2,756,126. -2,009,434. 1,202,753
reclassifiable to profit or loss in 3,212,187.35 -746,692.75
81 06 .29
subsequent periods
Gains and losses from changes in fair
-2,986,770. -2,240,078. 561,867.8
value of financial assets available for 3,045,914.97 -746,692.75
99 24 1
sale
Translation differences of financial 396,916.5
166,272.38 230,644.18 230,644.18
statements denominated 6
Total of other comprehensive income -2,756,126. -2,009,434. 1,202,753
3,212,187.35 -746,692.75
81 06 .29
33.Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 70,539,319.86 70,539,319.86
Total 70,539,319.86 70,539,319.86
34. Retained profits
In RMB
128
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Items Amount of this period Amount of last period
Before adjustments: Retained profits at the period
9,166,137.97 6,805,203.33
end
After adjustments: Retained profits at the period
9,166,137.97 6,805,203.33
beginning
Add: Net profit attributable to owners of the
-30,097,851.40 8,497,227.40
Company for the period
Less: Appropriation to statutory surplus reserve 6,136,292.76
Retained profits at the period end -20,931,713.43 9,166,137.97
35. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main Business 549,898,612.98 509,134,763.07 619,165,953.39 586,310,645.92
Other Business 2,258,972.58 2,114,934.57 1,827,380.09 1,827,380.11
Total 552,157,585.56 511,249,697.64 620,993,333.48 588,138,026.03
36. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Business tax 1,683,641.93 2,424,634.23
Urban construction tax 175,298.23 123,396.62
Education surcharge 127,629.51 88,140.42
House tax 1,028,950.29 883,482.95
Other 111,418.07 26,966.44
Total 3,126,938.03 3,546,620.66
37.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 1,204,137.01 1,178,294.41
Exhibition fee 144,038.99 213,381.75
129
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Advertising expenses 0.00 21,367.52
Business expenses 420,563.34 368,414.34
Transportation changes 1,655,766.13 1,717,902.03
Samples and product loss 369,885.00 394,738.08
Other 721,619.16 1,116,600.90
Total 4,516,009.63 5,010,699.03
38.Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 16,718,507.40 19,439,303.33
Property insurance 151,170.29 177,262.23
Repair charge 97,758.00 474,977.18
Business entertainment 718,023.30 744,434.80
Travel expenses 511,070.78 631,874.05
Office expenses 579,632.65 546,116.03
Water and electricity 363,586.77 2,007,974.64
Tax 2,353,718.22 885,760.50
Lawsuit expenses 175,591.27 3,999.00
Agency expenses 1,460,232.39 1,370,706.42
R& D 15,804,933.22 11,956,715.67
Board fees 54,038.00 58,135.00
Other 3,221,999.30 2,891,255.97
Depreciation of fixed assets 3,298,774.50 3,077,101.23
Amorization of intangible assets 589,675.55 616,554.33
Amortization of long-term deferred
15,483.48 89,550.48
expenses
Low consumables amortization 10,060.00 85,564.00
Total 46,124,255.12 45,057,284.86
130
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
39.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
2,623,711.45 3,962,978.70
Interest expenses
-14,044,416.50 -15,870,335.45
Interest income
Exchange loss 19,620,000.69 483,171.30
773,521.92 150,999.82
Fees and other
8,972,817.56 -11,273,185.63
Total
40.Loss of assets impairment
In RMB
Items Amount of current period Amount of previous period
2,320,690.69 2,000,874.24
I .Losses for bad debts
6,252,416.77 18,732,928.24
II. Losses for falling price of inventory
Total 8,573,107.46 20,733,802.48
41. Investment income
In RMB
Items Amount of this period Amount of last period
Investment income from the disposal of
711,998.34 1,029,521.87
long-term equity investment
Hold the investment income during from
1,555,194.95 2,118,237.17
available-for-sale financial assets
Investment income gain from available for sale
44,444,187.39
financial assets
Total 2,267,193.29 47,591,946.43
42. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
131
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Total gains from disposal of
300.00
non-current assets
Including：Gains from disposal
300.00
of fixed assets
Government Subsidy 2,165,711.40 5,781,523.39 2,165,711.40
Other 132,509.01 2,095,125.89 132,509.01
Total 2,298,220.41 7,876,949.28 2,298,220.41
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Issuing subsidies on
Items Reason Nature special current previous d/income
subject the current
subsidies period period -related
profit and
loss
Because
company
work on
specific
industry that
Amortization
country
of
encourage
government Related to
Subsidy and support, No No 3,954,990.00
research and Income
the company
development
received
grants
grants
(according to
national
policy legally
obtained)
Because
Amortization company
of high-tech work on
industrializati specific
on industry that Related to
Subsidy No No 100,000.00 100,000.00
demonstratio country assets
n project encourage
matching and support,
funds the company
received
132
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
grants
(according to
national
policy legally
obtained)
Because
company
work on
New-style specific
industrializati industry that
on of flat country
panel display encourage
Related to
amortization Subsidy and support, No No 500,000.00 500,000.00
assets
of State the company
subsidy funds received
for special grants
projects (according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
Shenzhen country
municipal encourage
financial and support, Related to
Subsidy No No 120,972.24 120,972.21
transfer loan the company assets
amortization received
of discount grants
(according to
national
policy legally
obtained)
Amortization Because
of grant company
funds for work on Related to
Subsidy No No 250,000.02 250,000.00
phase-I specific assets
Narrow line industry that
project of country
133
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
polarizer for encourage
TFT-LCD and support,
TFT-LCD the company
received
grants
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
Amortization
country
of subsidy for
encourage
the
and support, Related to
industrializati Subsidy No No 649,999.98 650,000.00
the company assets
on project of
received
polarizer for
grants
TFT-LCD
(according to
national
policy legally
obtained)
Because
company
work on
specific
Amortization industry that
of purchase country
of imported encourage
Related to
equipment Subsidy and support, No No 87,545.10 87,545.10
assets
and the company
technology received
grants grants
(according to
national
policy legally
obtained)
Grant funds Because Related to
for TFT-LCD Subsidy company No No 25,000.02 25,000.00
assets
polarizer work on
134
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
industry specific
project industry that
country
encourage
and support,
the company
received
grants
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
Amortization
country
for the introd
encourage
uction of adv Related to
Subsidy and support, No No 7,194.00 7,194.08
anced technol assets
the company
ogy import ca
received
pital funding
grants
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
Futian country
District encourage
Related to
Industrial Subsidy and support, No No 63,000.00
Income
Development the company
grant funds received
grants
(according to
national
policy legally
obtained)
135
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Because
company
work on
specific
Economic
industry that
and Trade
country
Commission
encourage
2013 foreign Related to
Subsidy and support, No No 16,722.00
trade Income
the company
structure
received
optimization
grants
support funds
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
country
encourage
Exhibition and support, Related to
Subsidy No No 6,100.00
subsidies the company Income
received
grants
(according to
national
policy legally
obtained)
Because
Shenzhen
company
polarizing
work on
materials and
specific
Technology
industry that Related to
Engineering
Subsidy country No No 25,000.02
Laboratory assets
encourage
Innovation
and support,
and
the company
entrepreneurs
received
hip funds
grants
136
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
Shenzhen
country
polarizing
encourage
plate material Related to
Subsidy and support, No No 250,000.02
technology assets
the company
Engineering
received
Laboratory
grants
(according to
national
policy legally
obtained)
Because
company
work on
specific
industry that
country
Capital encourage
funding for and support, Related to
Subsidy No No 150,000.00
Technology the company assets
Center received
grants
(according to
national
policy legally
obtained)
Total -- -- -- -- -- 2,165,711.40 5,781,523.39 --
43．Non-current expenses
In RMB
The amount of non-operating
Items
Amount of current period Amount of previous period gains & lossed
137
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Total of non-current asset
20,770.93 72,965.54 20,770.93
Disposition loss
Incl: loss of fixed assets
20,770.93 72,965.54 20,770.93
disposition
Other 58.85 23.02 58.85
Total 20,829.78 72,988.56 20,829.78
44. Income tax expenses
（1）Income tax expenses
In RMB
Items
Amount of current period Amount of previous period
Current income tax expense 6,088,398.09 16,871,410.54
Deferred income tax expense -1,851,202.65 636,554.71
Total 4,237,195.44 17,507,965.25
（2）Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits -25,860,655.96
Income tax computed in accordance with the applicable tax rate -6,465,163.99
Effect of different tax rateapplicable to the subsidiary Company 4,963,860.82
Influence of income tax before adjustment -2,185,657.56
Influence of non taxable income -177,999.59
Impact of non-deductible costs, expenses and losses 8,102,155.76
The current period does not affect the deferred tax assets
4,237,195.44
recognized deductible temporary differences or deductible loss
Income tax expense
45.Other comprehensive income
Details refer to the Note 32.
138
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
46.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Government Subsidy 2,165,711.40 5,161,875.00
Bank deposit interest income and other 30,907,810.95 21,323,964.63
Total 33,073,522.35 26,485,839.63
(2).Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Research & development expenses 15,804,933.22 1,351,411.41
Office expenses 579,633.65 554,757.31
Business hospitality 1,138,586.64 1,112,849.14
Travel fee 511,070.78 778,192.93
Transportation expnses 1,655,776.13 1,717,902.03
Agency Fee 1,460,232.39 1,370,706.42
Insurance premium 151,170.29 177,262.23
Water and electricity fee 2,258,972.58 2,007,974.64
Repair feee 236,364.98 474,977.18
Exhibition expenses 144,038.99 213,381.75
Other 32,355,682.11 4,314,248.35
Total 56,296,461.76 14,073,663.39
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Fragmented dividend 6.38
Total 6.38
(4)Cash paid related to other investment activities
In RMB
139
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Items Amount of current period Amount of previous period
Structure deposit investment 368,000,000.00 460,000,000.00
Deposited in the fixed deposit account 0.00 57,269.91
Total 368,000,000.00 460,057,269.91
47. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit -30,097,851.40 7,668,027.95
Add: Impairment loss provision of assets -13,629,724.46 75,317.28
Depreciation of fixed assets, oil and gas
37,072,204.67 39,299,556.21
assets and consumable biological assets
Amortization of intangible assets 589,675.55 616,554.33
Amortization of Long-term deferred
153,604.01 123,701.50
expenses
Loss on disposal of fixed assets, intangible
72,361.36
assets and other long-term deferred assets
Financial cost 21,494,287.45 -15,048,693.89
Loss on investment -2,267,193.29 -47,591,946.43
Decrease in deferred income tax assets -240,628.26 643,238.30
Increased of deferred income tax liabilities -278,469.57 -9,787,548.52
Decrease of inventories 14,425,655.98 -29,251,840.91
Decease of operating receivables -77,223,450.49 -29,915,050.88
Increased of operating Payable 10,685,694.47 87,389,451.70
Net cash flows arising from operating
-39,316,195.34 4,293,128.00
activities
II. Significant investment and financing
-- --
activities that without cash flows:
III．Movement of cash and cash equivalents： -- --
Ending balance of cash equivalents 665,289,786.79 638,275,236.97
Less: Beginning balance of cash equivalents 748,658,875.60 1,098,232,359.02
140
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Net increase of cash and cash equivalents -83,369,088.81 -459,957,122.05
(2)Composition of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 665,289,786.79 748,658,875.60
Including：Cash at hand 12,995.11 8,872.71
Demand bank deposit 602,045,962.06 746,697,143.40
Demand other monetary funds 63,230,729.62 1,952,859.49
III. Balance of cash and cash equivalents at
665,289,686.79 748,658,775.60
the period end
48. The change of owner's equity statement
Description of the prior year ending balance adjustment "Other" item name and adjust the amount of such matters
as:
1, the capital reserve increased by piecemeal share dividend 6.38 yuan;
2, other comprehensive income due to holding financial assets available for sale fair value changes Diaojian
2,253,402.98 yuan;
3, because the first half of undistributed losses Tiaojian 30,097,851.39 yuan.
49.Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary fund
Including：USD 982,693.22 6.6312 6,516,435.28
HKD 116,928.01 0.8547 99,935.34
JPY 172,681.04 0.06449 11,136.37
Account receivable
Including：USD 8,802,565.98 6.6312 58,371,575.53
HKD 278,280.00 0.8547 237,845.92
JPY
141
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Other receivable
Including：USD 37,399.02 6.6312 248,000.38
JPY
Short –term loans
Including：USD 2,671,696.23 6.6312 17,716,552.04
JPY 131,868,450.00 0.06449 8,504,328.21
Account payble
Including：USD 17,804,100.97 6.6312 118,062,554.36
JPY 903,131,060.99 0.06449 58,243,825.20
Other payable
Including：USD 93,867.50 6.6312 622,454.17
HKD 2,042,954.08 0.8547 1,746,094.86
(2) Note to overseas operating entities, including important overseas operating entities, wich should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In
case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
VIII. 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 100.00%
Development Co.,
Management
Ltd
Accommodation,
Shenzhen Establish
Shenzhen Shenzhen restaurants, 100.00%
Huaqiang Hotel
business center;
Shenfang
Property Property
Shenzhen Shenzhen 100.00% Establish
Management Co., Management
Ltd.
Shenzhen Beauty Production of Establish
Shenzhen Shenzhen fully electronic 100.00%
Century Garment
jacquard knitting
142
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Co., Ltd. whole shape
Shenzhen
Shengbo Operating import
Ophotoelectric Shenzhen Shenzhen 100.00% Purchase
Technology Co., and export
Ltd business
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
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
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture： -- --
Total book value of the investment 7,521,241.97
Total amount of the pro rata calculation of
-- --
the following items
--Net profit 350,367.79
--Other Comprehensive income 350,367.79
143
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Associated enterprise： -- --
Total amount of the pro rata calculation of
-- --
the following items
--Net profit -5,815.71
--Other Comprehensive income 673,338.37
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 building project has been basically completed, and has been carried over to
do real estate investment process.
IX. 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
144
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
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.
X. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
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
-- -- -- --
measurement
(1).Available for sale
7,067,705.61 7,067,705.61
financial assets
1.Equity instrument
7,067,705.61 7,067,705.61
investment
Total of Consistent fair
7,067,705.61 7,067,705.61
value measurement
III. Non Consistent fair
value -- -- -- --
measurement
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 June 30,2016.
145
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
XI. 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
Shenzhen Equityinvestment ,
Building, Shennan
Investment Holdings RealestateDevelopm 1,092,599.0674 46.21% 49.39%
Co.,Ltd. Road, Futian
entandGuarantee
District, Shenzhen
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 stateownedassetssupervision &
AdministrationCommission.
2.Subsidiaries of the Company
Details refer to the Note VIII. Equity in other entity 1.Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note VIII. Equity in other entity 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
Shenzhen Tianma Microelectronics Co., Ltd. Chairman of the Board Is the Vice Chairman 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
Shengbo （HK）Co., Ltd. The Company Executivesare Director of the company
5. Related transactions.
1．Sales of goods and vendering of services
146
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
(1) Related party transactions of purchasing goods and services
Selling of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Shenzhen Tianma
Sales polarizer sheet 957,463.47 1,091,908.67
Microelectronics Co., Ltd.
(2)Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
1,869,653.00 1,728,309.00
personnel
（3）Other 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%. IAS of
June 30, 2016, The Company actually received a loan of RMB 120 million.
6. Receivables and payables of related parties
（1）Receivables
In RMB
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 Microelectronics 477,930.79 23,896.54 349,938.59 17,496.93
Co., Ltd.
Other Account Anhui Huapeng
3,600,000.00 270,000.00 3,600,000.00 270,000.00
receivable Textile Company
Other Account Shenzhen Dailishi
837,780.00 41,889.00 277,172.52 13,858.63
receivable Underwear Co., Ltd.
147
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
（2）Payables
In RMB
Amount at year end Amount at year beginning
Name Related party
Shenzhen Xinfang Knitting Co.,
Other payable 244,789.85 244,789.85
Ltd.
Shenzhen Xiangjiang Trade
Other payable 40,000.00 40,000.00
Co., Ltd.
Shenzhen Changlianfa Printing
Other payable 916,673.69 916,673.69
and dyeing Co., Ltd.
Shenzhen Haohao Property
Other payable 4,529,489.85 4,179,489.85
Leasing Co., Ltd.
Other payable Yehui International Co.,Ltd. 1,137,966.35 1,137,966.35
Shenzhen Dailishi Underwear
Other payable 570,686.82 315,000.00
Co., Ltd.
Shenzhen Shenchao Technology
Interest payable 39,000,625.75 39,000,625.75
Investment Co., Ltd.
XII. Notes s of main items in financial reports of parent company
1.Account receivable
(1).Classification accojunt receivables.
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision
Classification Book value
Amount Proportio Amount Proportio value Amount Proportio Amount Proportion(
n(%) n(%) n% %)
Accounts receivable
subjecttoimpairment
639,578. 31,978.9 607,599.4 862,162
assessment by credit 100.00% 15.00% 100.00% 43,108.13 5.00% 819,054.57
40 1 9 .70
risk characteristics of
a portfolio
639,578. 31,978.9 607,599.4 862,162
Total 43,108.13 819,054.57
40 1 9 .70
Accounts receivable of individual significance and subject to individual impairment assessment.
□ Applicable √ Not applicable
148
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Within 1 year 639,578.41 31,978.92 5.00%
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 10,848.28 ; The acmount collected or switches back amounting to
RMB-21,977.50.
2.Other receivable
(1)Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other accounts
receivable of
individual
11,981,4 11,981,4 11,981, 11,981,46
significance and 13.43% 100.00% 12.98% 100.00%
64.60 64.60 464.60 4.60
subject to individual
impairment
assessment
Other accounts
receivable
subjecttoimpairme
80,527,2 7,463,29 73,063,90 79,979, 7,435,914 72,543,709.
nt assessment by 86.22% 9.27% 86.68% 9.30%
02.92 3.43 9.49 624.27 .49 78
credit risk
characteristics of a
portfolio
Other accounts 311,486. 0.35% 311,486. 100.00% 311,486 0.34% 311,486.3 100.00%
149
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
receivable of 35 35 .35 5
individual
insignificance but
subject ot individual
impairment
assessment
92,820,1 19,756,2 73,063,90 92,272, 19,728,86 72,543,709.
Total 100.00% 100.00%
53.87 44.38 9.49 575.22 5.44 78
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
Amount in year-end
Debtor Other account
Bad debt provision Rate of alloance(%) Reason for allowance
receivable
Jiangxi Xuanli String Co., Estimates can not be
11,389,044.60 11,389,044.60 100.00%
Ltd. recovered
Shenzhen Tianlong Estimates can not be
592,420.00 592,420.00 100.00%
Induatry& Trade Co., Ltd. recovered
Total 11,981,464.60 11,981,464.60 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within item 1 year
Subtotal within 1 year 71,289,573.42 3,564,478.68 5.00%
Within 1 year 1,800,000.00 180,000.00 10.00%
Over 3 year 7,437,629.50 3,718,814.75 50.00%
Total 80,527,202.92 7,463,293.43
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□ Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□ Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB153,512.27.
150
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
（3）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
In Inter-company accounts 75,889,102.97 75,889,102.97
Unit account 16,151,323.38 16,251,300.27
Other 779,727.52 132,171.98
Total 92,820,153.87 92,272,575.22
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
In Inter-company
63,644,822.25 Within 1 year 68.57% 3,182,241.10
First accounts
Second Unit account 11,389,044.60 Over 3 years 12.27% 5,694,522.30
Inter-company
7,168,680.72 Over 3 years 7.72% 3,584,340.36
Third accounts
Inter-company
5,000,000.00 Within 1 year 5.39% 250,000.00
Fouth accounts
75,600.00 Over 3 years 0.08% 37,800.00
Fifth Unit account 1,800,000.00 Within 1 year 1.94% 90,000.00
1,800,000.00 1-2 years 1.94% 180,000.00
Total -- 90,878,147.57 -- 97.91% 13,018,903.76
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,980,806,395.91 16,582,629.30 1,964,223,766.61 1,772,806,395.91 16,582,629.30 1,756,223,766.61
subsidiary
Investment to
joint ventures and 23,877,116.06 266,654.99 23,610,461.07 23,145,924.05 266,654.99 22,879,269.06
associated
151
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
enterprises
Total 2,004,683,511.97 16,849,284.29 1,987,834,227.68 1,795,952,319.96 16,849,284.29 1,779,103,035.67
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen Shengbo
Optoelectrionc
1,716,663,070.03 208,000,000.00 1,924,663,070.03 14,415,288.09
Technology Co.,
Ltd.
Shenzhen Lisi
Industrial
8,073,388.25 8,073,388.25
Development Co.,
Ltd.
Shenzhen Beauty
Centruty Garment 30,867,400.00 30,867,400.00 2,167,341.21
Co., Ltd.
Shenzhen
15,489,351.08 15,489,351.08
Huaqiang Hotal
Shenfang Property
Management Co., 1,713,186.55 1,713,186.55
Ltd.
Total 1,772,806,395.91 208,000,000.00 1,980,806,395.91 16,582,629.30
（2）Investment to joint ventures and associated enterprises
IIn RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
152
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Shenzhen
Haohao
4,397,840 347,953.3 4,745,794
Property
.88 5 .23
Leasing
Co., Ltd.
Shenzhen
Xieli
4,061,958 4,061,958 266,654.9
Automobi
.96 .96 9
le Co.,
Ltd.
8,459,799 347,953.3 8,807,753 266,654.9
Subtotal
.84 5 .19 9
II. Associated enterprises
Shenzhen
Changlian
fa
1,871,377 1,938,153
Printing 66,776.03
.09 .12
and
dyeing
Company
Jordan
3,384,014 -308,236. 3,075,778
Garnent
.49 16 .33
Factory
Yehui
Internatio 9,430,732 836,149.3 -211,450. 10,055,43
nal Co., .63 0 51 1.42
Ltd.
14,686,12 594,689.1 -211,450. 15,069,36
Subtotal
4.21 7 51 2.87
23,145,92 942,642.5 -211,450. 23,877,11 266,654.9
Ttotal
4.05 2 51 6.06 9
4.Business income and Business cost
In RMB
153
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main Business 29,952,072.64 4,007,116.78 29,699,808.94 3,576,177.12
Other Business 1,646,987.54 1,646,987.54 1,827,380.09 1,827,380.11
Total 31,599,060.18 5,654,104.32 31,527,189.03 5,403,557.23
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
80,000.00
measured by adopting the Cost method
Income from long-term equity investment
2,039,333.34 1,029,521.87
measured by adopting the Equity method
Investment income received from holding of
147,859.95 1,432,892.22
available-for –sale financial assets
Investment income arising from disposal of
44,444,187.39
long-term eqiuty investments
Total 2,267,193.29 46,906,601.48
XIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -20,770.93
Govemment subsidies recognized in
currentgain and loss(excluding those closely
2,165,711.40
related to the Company’s business and
granted under the state’s policies)
Other non-business income and expenditures
132,449.53
other than the above
Less: Influenced amount of income tax -3,436.95
Total 2,280,826.95 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the
154
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnngs per share
Earningspershare
Profitofreportperiod Weightedaverageretureoneqiuty(%) Basicearningspershare(R Diluted eqrnings per
MB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of -1.40% -0.06 -0.06
Company.
Net profit attributable to the
Common stock shareholders of
-1.51% -0.0639 -0.0639
Company after deducting of
non-recurring gain/loss.
3.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
（2）Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the
accounting standards outside Mainland China and CAS
□ Applicable √Not applicable
155
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
X．Documents Available for Inspection
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of
accounting and person in charge of accounting organ;
2. 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.
August 26，2016
156
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