Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Shenzhen Textile (Holdings) Co., Ltd
August 2026
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section I Important Notes, Table of Contents and
Interpretations
The Board of Directors, directors and senior officers of the
Company guarantee the authenticity, accuracy and completeness of
the contents of the semi-annual report, and bear individual and joint
legal liabilities for any false records, misleading statements or major
omissions.
The Principal LI Gang, the Chief Finance Officer LIU Yu and the
Chief Accountant (accounting supervisor) LI Zhenyu declare that they
will ensure the authenticity, accuracy and completeness of the
financial report in this semi- annual report.
All directors have attended the board meeting at which this semi-
annual report was considered.
Concerning the forward-looking statements with future planning
involved in the Report, they do not constitute a substantial
commitment for investors, Investors and related persons shall keep
sufficient risk awareness, and shall understand the differences
between plans, forecasts and commitments, and remind investors of
investment risks.
The Company is exposed to macroeconomic risks, market risks,
raw materials risks and intensified competition risks. Investors are
advised to pay attention to investment risks. For details, please refer
to "X. Risks and Countermeasures Faced by the Company" in "Section
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
III Management Discussion and Analysis" of this report.
The Company plans not to distribute cash dividends, issue bonus
shares, or increase share capital through capitalization of reserves.
This report is prepared in both Chinese and English. In the event
of any discrepancy in the interpretation of the Chinese and English
texts, the Chinese version shall prevail.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
TABLE OF CONTENTS
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Documents available for inspection
Manager, Chief Financial officer.
II. The original of all the Company's documents and the original of the announcement that have been
publicly disclosed by the Company on the website designated by the China Securities Regulatory
Commission during the reporting period.
The above documents were completely placed at the Office of Secretaries of the Board of Directors of
the Company.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Interpretations
Item of interpretations Refers to Interpretations
The Board of Directors of Shenzhen Textile
Company/The Company/ Shen Textile Refers to
(Holdings) Co., Ltd.
Articles of Association of Shenzhen Textile
Articles of Association Refers to
(Holdings) Co., Ltd
Actual controller / National Assets Regulatory
State-owned Assets Regulatory Commission of
Commission of Shenzhen Municipal People's Refers to
Shenzhen Municipal People's Government
Government
The Controlling shareholder/ Shenzhen Investment
Refers to Shenzhen Investment Holdings Co., Ltd
Holdings Co., Ltd.
Shenzhen Shenchao Technology Investment Co.,
Shenchao Technology Refers to
Ltd.
Shenzhen SAPO Photoelectric Co., Ltd. Refers to SAPO Photoelectric
Beauty Century Refers to Shenzhen Beauty Century Garment Co., Ltd.
Hengmei Photoelectric Refers to Hengmei Optoelectronics Co., Ltd
Hong Kong Xieli Refers to Hong Kong Xieli Maintenance Co., Ltd.
Shenzhen Xieli Refers to Shenzhen Xieli Automobile Co., Ltd.
Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project
Line 5 Refers to TFT-LCD polarizer II phase Line 5 project
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Industrialization project of polaroid for super large
Line 7 Refers to
size TV
Line 8 Refers to
construction)
“CSRC” Refers to China Securities Regulatory Commission
The Report Refers to 2026 Semi-annual Report
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section II Company Profile and Major Financial Indicators
I. Company profile
Shen Textile A, Shen
Stock abbreviation Stock code 000045、200045
Textile B
Modified stock ID (if any) None
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese Consolidated and Company cash flow statement
Chinese name of the
Shen Textile
Company (if any)
Foreign name of the
SHENZHEN TEXTILE (HOLDINGS) CO., LTD
Company (if any)
English abbreviation (If
STHC
any)
Legal representative Li Gang
II. Contact person and contact manner
Secretary to the board of directors Securities affairs Representative
Name Guo Yu Guo Weiqiang
Contact address Huaqiang North Road, Futian District, Huaqiang North Road, Futian District,
Shenzhen Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail guoy@chinasthc.com guowq@chinasthc.com
III. Other circumstances
Whether the company's registered address, office address and postal code, website, e-mail, etc. have changed during
the reporting period
Applicable □Not applicable
Room A3604, Tower A, China State-owned Capital
Venture Building, No. 2 Hengsheng Street, Nanshan
Company's registered address
Street, Qianhai Shenzhen-Hong Kong Cooperation Zone,
Shenzhen
Postal code of the Company's registered address 518052
Company's office address
Road, Futian District, Shenzhen
Postal code of the Company's office address 518031
Internet Web Site http://www.chinasthc.com
Company's Email szfzjt@chinasthc.com
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Designated website inquiry date disclosed in the
July 4, 2026
provisional announcement (if any)
Designated websites inquiry index disclosed in the Juchao Website Juchao Website
provisional announcement (if any) http://www.cninfo.com.cn
Whether the information disclosure and storage location have changed during the reporting period
□Applicable Not applicable
□Applicable Not Applicable The website of the stock exchange and the name and address of the media where the
company discloses the semi-annual report, and the storage location where the Company's semi-annual report is
prepared has not changed during the reporting period. For details, please refer to the 2025 Annual Report.
Whether other relevant information has changed during the reporting period
□Applicable Not applicable
IV. Key accounting data and financial indicators
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□Yes No
The reporting period Same period last year Increase/decrease
Operating income(Yuan) 1,588,723,198.14 1,600,481,626.31 -0.73%
Net profit attributable to the
shareholders of the listed 50,776,164.37 35,234,765.52 44.11%
company(Yuan)
Net profit after deducting of
non-recurring gain/loss
attributable to the 43,893,052.01 25,189,003.47 74.25%
shareholders of listed
company(Yuan)
Cash flow generated by
business operation, 252,931,044.35 325,334,320.99 -22.26%
net(Yuan)
Basic earning per
share(Yuan/Share)
Diluted gains per
share(Yuan/Share)
Weighted average ROE(%) 1.70% 1.19% 0.51%
Increase or decrease at the
end of the reporting period
End of the reporting period At the end of last year
compared with the end of
the last year
Gross assets(Yuan) 5,550,232,435.10 5,418,295,716.77 2.44%
Net assets attributable to
shareholders of the listed 3,006,182,703.30 2,979,719,569.18 0.89%
company(Yuan)
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
V. Differences between accounting data under domestic and overseas accounting
standards
the international accounting standards and the Chinese accounting standards
□Applicable Not applicable
During the reporting period of the Company, there was no difference in net profits and net assets in financial reports
disclosed in accordance with international accounting standards and Chinese accounting standards
□ Applicable□√ Not applicable
□Applicable Not applicable
accounting standards. □ Applicable √Not applicable None
VI. Non-recurring profit or loss items and amounts
Applicable □Not applicable
In RMB
Rewards for the key management
Amount Description
personnel Items
Non-current asset disposal
gain/loss(including the write-off part Mainly the losses on write-off of fixed
-21,479.04
for which assets impairment assets
provision is made)
Government grants included in profit
and loss of the current period (except
for government subsidies that are
closely related to the Company's
normal business operation, comply 690,798.69 Mainly government subsidies.
with national policies and are enjoyed
in accordance with defined criteria,
and have a continuing impact on the
Company's profit or loss)
Losses/gains from changes of fair
values occurred in holding trading
financial assets and trading financial
Mainly gains and losses from
liabilities, and investment income
changes in fair value arising from the
obtaining from the disposal of trading
financial assets, trading financial
assets and derivative financial
liability and financial assets available-
liabilities.
for-sale, excluded effective hedging
business relevant with normal
operations of the Company
Reversal of the account receivable
depreciation reserves subject to 5,003,582.71
separate impairment test
Other non-business income and Mainly the litigation compensation
-577,522.61
expenditures other than the above expenses.
Less :Influenced amount of income
tax
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Influenced amount of minor
-43,356.09
shareholders’ equity (after tax)
Tota 6,883,112.36
Details of other profit and loss items that meet the non-recurring profit and loss definition
□Applicable Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by the
Guangzhou-Foshan Expressway to be clarified, it will affect the normal judgment of the Company's operating
performance and profitability by the user of the report.
None For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies 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 recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section III Management Discussion & Analysis
I. Main business engaged in by the Company during the reporting period
(I) Development of the industry to which the company belongs
Polarizers are also known as polaroid, which can control the polarization direction of specific light beams. When
natural light passes through the polarizer, the light whose vibration direction is perpendicular to the transmission axis
of the polarizer will be absorbed, leaving only polarized light whose vibration direction is parallel to the transmission
axis of the polarizer. The downstream polarizer is mainly used in the panel industry. According to different panel types,
polarizers mainly include TN, STN, TFT and OLED. Currently, the global polarizer market is dominated by TFT-LCD
polarizers. Each LCD panel requires two polarizers.
The high-quality development of the polarizer industry has a profound impact on the entire display industry. As
one of the core raw materials of the display panel, the demand for polarizer is directly affected by the fluctuation of the
display panel market. In recent years, with the accelerated transfer of the global display panel industry to China,
China's polarizer industry has ushered in a stage of rapid development. The production capacity and process
technology level of domestic polarizer manufacturers have continuously jumped. China's polarizer industry has
significantly improved its position and influence in the global market. Chinese mainland has become the world's largest
polarizer production base.
The company is one of the main domestic polarizer research and development, production, and sales enterprises.
It is a pioneer in the polarizer industry in China and has now developed into a leading enterprise in the domestic
polarizer industry, becoming an important supplier of mainstream panel enterprises worldwide. In the first half of 2026,
affected by multiple overlapping factors such as the complex and volatile global economic and geopolitical situations,
supply and price fluctuations of upstream petrochemical commodities caused by disruptions to international shipping
and logistics, continuous optimization and adjustment of the national policies related to "Two-New and Two-Priority"
policies (namely, large-scale equipment upgrades and consumer goods trade-in programs, and major national
strategies and security capacity building in key areas), phased demand release driven by large-scale sports events,
and the rising prices of materials for storage devices stimulated by AI industry development, the global display panel
and terminal market generally showed a slow recovery trend, but there were still a certain degree of fluctuations and
challenges. Currently, the polarizer industry is witnessing continuous M&A consolidation and capacity expansion. In
the future, key attention should be paid to risks regarding the evolution of the industry's competitive landscape, the
pace of the release of effective market demand, the upward pressure of raw material costs, and supply chain security.
(II) Main businesses engaged by the Company
The Company's main business is a high-tech industry focusing on the R&D, production and sales of polarizers for
OLED and LCD display, and the operation and management of its own properties.
During the reporting period, the Company's main business has not changed significantly. First, the Company
actively adjusted its product structure, implemented a product differentiation strategy, and increased the sales
proportion of high-value-added products. It has the sales volume of ultra-large-size (85" and above) polarizers and
polarizers for OLED mobile surged significantly; Secondly, it continued to carry out lean management to further
increase the production line speed, and improve the manufacturing efficiency; Thirdly, it steadily promoted the
construction of Line 8 project, advanced the pile foundation engineering construction, and was about to enter the main
building construction stage of the plant; Fourthly, it ensured work safety, improved the construction of safety
management system, strengthened safety training and education, carried out safety risk identification and hidden
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
danger investigation and rectification, shore up weak links, and prevented accidents; Fifthly, it continued to well
manage its own properties, optimized property service quality, and improved tenant satisfaction, maintaining a stable
property occupancy rate and ensuring stable revenue from property leasing business under the condition of substantial
fluctuations in market demand.
During the reporting period, the Company recorded operating revenue of RMB 1.589 billion, representing a
decrease of 0.73% compared with the same period of the prior year. Net profit attributable to shareholders of the listed
company amounted to RMB 50.7762 million, an increase of 44.11% year-on-year. This growth was primarily
attributable to the Company's quality- and efficiency-enhancement initiatives, including the optimization of its product
mix, strengthened supply chain management to reduce procurement costs, upgrading of production processes, and
implementation of refined management and control measures, further compounded by the decline in overall
procurement costs resulting from the depreciation of the Japanese yen during the period. The Company's profitability
improved, and its overall operations remained steady and sound..
(III) Main products of the Company and their applications
Currently, the Company has 7 mass-production polarizer production lines, and its main products cover OLED, and
LCD polarizers. These products are mainly applied to products such as TVs, laptops, monitors, vehicles, industrial
controls, instruments and meters, smartphones, and wearable devices. By continuously strengthening the expansion
of sales channels and the construction of its own brand, the Company has become a qualified supplier for mainstream
panel enterprises such as CSOT, BOE, LGD, Xianyang Caihong, HKC, Tianma Microelectronics, Sharp and so on.
The main product types and applications of the Company's polarizer production lines are as follows:
Line Place Product breadth Annual capacity Main project
Line 4 Pingshan 1490mm 10 million m2 TFT/OLED
Line 5 Pingshan 650mm 2 million m2 TFT/OLED
Line 6 Pingshan 1490mm 16 million square meters TFT/OLED
Line 7 Pingshan 2500mm 32 million m2 TFT/OLED
(IV) Business model of the Company
The polarizer industry has gradually shifted from a traditional business model of R&D, production, and sales to a
customer-centric, joint research and development, and comprehensive service business model. By understanding
customer needs, the Company jointly develops and carries out high-standard production management, manufactures
high-quality products, uses advanced polarizer roll-on equipment to cooperate with downstream panel manufacturers'
production lines, optimizes production and logistics links, reduces production and transportation costs, creates value
for customers, and achieves win-win cooperation.
(V) Market position of company products
The Company is one of the main domestic enterprises in the R&D, production, and sales of polarizers. It began its
polarizer business in 1995 and achieved the first mass production of polarizers in China in 1998, becoming a pioneer
in China's polarizer industry. The Company has mastered core technologies for the R&D and production of TN/STN-
LCD, TFT-LCD, and OLED polarizers, with the capability to produce a full range of polarizer products in large, medium,
and small sizes. The Company was the first to achieve mass production of polarizers for OLED TVs and OLED mobile
phones in China, filling a gap in the domestic industry.
(VI)Main performance drivers of the Company
See "II. Core Competitiveness Analysis" in this section for details.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
II. Analysis of core competitiveness
(I) Technology advantages. SAPO Photoelectric is one of the earliest national high-tech enterprises in China to
enter the field of display polarizer research and development and production. It has 30 years of polarizer industry
operation experience, and its products cover mainstream display applications such as TN/STN LCD, TFT LCD, OLED,
etc. It has a complete set of proprietary technology and independent intellectual property rights for polarizers that can
meet customer needs, and has the production capacity of a full range of polarizers in large, medium and small sizes.
SAPO Photoelectric has three innovation platforms, including "Guangdong Provincial Engineering Research Center",
"Shenzhen Polarization Material and Technology Engineering Laboratory" and "Shenzhen Enterprise Technology
Center". The platforms focus on the R&D and industrialization of the core production technologies of polarizers for
OLED and LCD. As of the end of the reporting period, SAPO Photoelectric has obtained a total of 119 patent
authorizations, including 23 domestic invention patents, 92 domestic utility model patents, and 4 overseas utility model
patents. Four national standards and two industry standards were independently drafted and formulated by SAPO
Photoelectric and approved for implementation. In addition, it participated in the drafting and formulation of 1 industry
standard, which has been approved for implementation. Further, it participated in the drafting and formulation of 3
group standards, which have been approved for implementation.
(II) Talent advantages. The Company consistently practices the core strategy of "strengthening the enterprise with
talents." Based on the development path of independent R&D and relying on a specialized innovative R&D platform, it
has built a standardized and efficient R&D management system. The Company has gathered a group of highly
versatile professionals deeply rooted in the display materials industry with a global operational vision. The team covers
core key positions such as cutting-edge technology R&D and refined production and operation management, building
a solid talent foundation for the localized substitution of the domestic polarizer industry and the high-quality
development of the Company. The Company has established and improved an all-round, multi-level system for talent
introduction, cultivation, and incentive, continuously consolidating its core talent competitiveness and fully unleashing
the innovative vitality of its talents. First, set up dedicated core R&D teams for tackling key technical challenges. The
Company has built a dual career development tracks for technical and management roles. Combined with diversified
cultivation models such as specialized skills training and in-depth cooperation between universities and enterprises, it
accurately empowers the growth of technical talents and efficiently promotes the R&D, technological iteration, and
industrialization of new polarizer products. Second, improve the talent echelon building for mid-level backbones.
Through a dual-track selection mechanism involving market-oriented external recruitment and internal open
competition, the Company continuously replenishes the talent reserves for key positions in manufacturing, R&D and
innovation, and market operations, continuously delivering high-quality professional manpower for the Company's
capacity expansion, customer development, and business expansion. Third, carry out regular talent rotation
exchanges and specialized empowerment training. Focusing on the targeted cultivation of core backbone employees,
the Company comprehensively enhances the professional performance capabilities and cross-departmental
collaborative efficiency of management personnel and front-line core employees, continuously activating the internal
momentum of the team and organizational vitality. Fourth, improve the incentive and restraint mechanism to promote
the implementation of strategic objectives. In response to the company's core technical challenges, performance
breakthrough points, and key project construction, establish a special reward system to guide key employees to pool
their efforts and focus on advancing key projects and resolving major problems. Meanwhile, explore the establishment
of an equity incentive mechanism to align the value creation of the core team with the company's economic profits and
strategic objectives, and build a medium- to long-term value creation and sharing mechanism featuring shared benefits
and shared risks..
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(III) Market advantages. The Company has a good domestic and international customer base. Compared with
advanced foreign competing manufacturers, the greatest advantage lies in having localized supporting capabilities
close to the panel market and strong support from national industrial policies. In terms of market demand, with the
successive mass production of high-generation TFT-LCD panel production lines such as domestic 10.5-generation and
for polarizers, especially ultra-large-size polarizers, in the domestic market has shown a steady growth trend. The
Company possesses one of the few 2,500mm ultra-wide polarizer production lines in the world, maintaining an
industry-leading advantage in both technology and production capacity for ultra-large and large-size polarizers, which
enables the Company to better align with the market demand for the ultra-large-size polarizers. With the continuous
breakthrough of cutting-edge technology, the demand for high-end polarizer products such as OLED and vehicle-
mounted polarizer is growing rapidly, and is becoming a blue ocean market for polarizer companies to compete. The
Company has achieved mass production breakthroughs and continuous supply in OLED TVs and mobile phone
polarizers, and has accumulated rich experience in the production of high-quality automotive polarizers, which will put
it in a favorable position in market competition. In terms of market development, the Company focuses on customer
needs, continuously optimizes the production process and product structure, improves quality control, organically
combines production and sales, establishes a rapid response mechanism, gives full play to the advantages of
localization, effectively provides point-to-point professional services, and promotes the verification of various models
around the overall strategic deployment to form a stable supply chain and continuously improve market share.
(IV) Quality advantages. The Company always adheres to the quality policy of "meeting customer needs, pursuing
excellent quality; implementing green manufacturing and persisting on continuous improvement", pays attention to
product quality control, and the product quality is comparable to international standards. The Company strictly controls
product performance indicators, standardizes incoming inspection standards, and takes quality improvement and
consumption reduction as the starting point to achieve simultaneous improvement of output and quality; introduces
modern management system, and passes ISO9001 quality management system, ISO14001 environmental
management system, ISO45001 occupational health and safety management system, QCO80000 hazardous
substance management system and ISO50001 energy management system certification; The products meet the
environment protection requirements of RoHS directive, and realize the standardized management of the whole
process from raw materials supply, manufacturing, marketing to customer service, so as to ensure the stability of
product quality.
(V).Management advantages. The Company has been deeply involved in the polarizer industry for 30 years,
accumulated rich production and management experience, and establishes a leading domestic management process
control system, quality management system, and stable raw material supply channels. The Company has carried out
in-depth and comprehensive benchmarking work, organized management personnel to learn advanced experience
from customers and peers, vigorously promoted standardized and refined management, and learned from the
management experience of domestic and overseas polarizer enterprises to optimize the organizational structure,
reduce the management levels, and continuously improve the Company's management efficiency; The Company
continues to optimize the management systems and incentive mechanisms to improve the decision-making efficiency
and the market response speed, and refine the R&D reward system. In addition, it achieves a deeper integration of
corporate value and employee value, effectively stimulating new business vitality; the Company steadily promotes
strategic transformation, optimizes resource allocation, and orderly phases out "non-core businesses and inefficient
assets" to promote the concentration of resources in the main business; the Company continues to improve the level of
production management, increase the production speed, stabilize the product yield rate, and steadily enhance the
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
efficiency of production lines, so that the production technical indicators reach a higher level in the industry; the
Company continuously strengthened whole-process quality management, effectively reduced customer complaints and
product returns, and won quality improvement awards from several key customers by virtue of quality improvement
achievements; through the approach of listing tasks based on project initiation, the Company has effectively improved
efficiency and quality, resulting in noticeable reductions in material costs and an increase in product yield rates.
(VI).Policy advantages. Polarizer industry is an important part of the new display industry chain. The continuous
development of the Company's polarizer business has improved the overall supply capacity of domestic polarizer,
greatly reduced the dependence of domestic panel enterprises on imported polarizer, maintained the safety of the
country's new display industry, played a positive role in enhancing the overall competitiveness of China's new display
industry chain, and boosted the coordinated development of the whole industrial chain of "20+8" ultra-high-definition
video display industry cluster in Shenzhen. The Company's polarizer business unit, SAPO Photoelectric, has continued
to receive the recognition as a national high-tech enterprise and its polarizer projects have received multiple policy and
financial supports from national and local governments; in addition, SAPO Photoelectric also enjoys the preferential
policy of import duty exemptions on key raw materials.
III. Analysis of primary business
Overview
See the relevant contents of "I. Main business engaged in by the Company during the reporting period".
YoY changes in key financial data
In RMB
Same period last Increase/Decrease
The reporting period Reason for changes
year (%)
Turnover 1,588,723,198.14 1,600,481,626.31 -0.73%
Operation cost 1,322,616,178.72 1,362,512,734.09 -2.93%
Mainly due to the
increase in exchange
-4,963,785.61 22,668,488.90 -121.90%
expenses fluctuations of
exchange rate during
the reporting period.
Mainly due to the YoY
Income tax expenses 4,088,822.46 7,663,966.35 -46.65% decrease in deferred
income tax expenses.
R&D investment 49,414,846.76 52,739,746.19 -6.30%
Net cash flows arising
from operating 252,931,044.35 325,334,320.99 -22.26%
activities
Mainly attributable to
Net cash flow the increase in the
company's investment
generated by -158,510,077.47 23,352,146.97 -778.78%
in the construction of
investment Line 8 during the
reporting period,
Net cash flow Mainly due to the new
-40,680,121.96 -67,003,672.36 39.29%
generated by loans during the
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
financing reporting period.
Mainly attributable to
the increase in the
Net increase in cash company's investment
and cash equivalents in the construction of
Line 8 during the
reporting period.
Credit impairment
loss
Significant changes in the Company's profit composition or profit sources during the reporting period
□Applicable Not applicable
There were no significant changes in the Company's profit composition or profit sources during the reporting period.
Composition of operating revenue
In RMB
The reporting period Same period last year Increase/Decrea
Amount Proportion Amount Proportion se(%)
Total operating
revenue
On Industry
Manufacturing 1,535,971,576.91 96.68% 1,543,457,384.39 96.44% -0.49%
Property leasing 52,751,621.23 3.32% 57,024,241.92 3.56% -7.49%
On Products
Polarizer sales 1,513,251,246.96 95.25% 1,511,063,971.82 94.41% 0.14%
Lease and
Management of 75,471,951.18 4.75% 89,417,654.49 5.59% -15.60%
Property
Area
Domestic 1,367,177,679.32 86.06% 1,401,726,654.92 87.58% -2.46%
Overseas 221,545,518.82 13.94% 198,754,971.39 12.42% 11.47%
Industry, product or region accounting for more than 10% of the Company's operating revenue or operating profit
Applicable □Not applicable
In RMB
Increase/decr Increase/decr Increase/decr
ease of ease of ease of gross
Gross revenue in the business cost profit rate over
Turnover Operation cost profit same period over the same the same
rate(%) of the period of period of the
previous previous year previous year
year(%) (%) (%)
On Industry
Manufacturing 1,535,971,576.91 1,310,291,933.35 14.69% -0.49% -2.90% 2.12%
Property
leasing
On Products
Polarizer
sales
Lease and
Management 75,471,951.18 27,407,299.94 63.69% -15.60% -34.30% 10.35%
of Property
Area
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Domestic 1,367,177,679.32 1,133,959,428.61 17.06% -2.46% -6.19% 3.29%
Overseas 221,545,518.82 188,656,750.11 14.85% 11.47% 22.71% -7.80%
Under the circumstances that the calculation method of the Company's main business data is adjusted during the
reporting period, the Company's main business data for the latest period is adjusted according to the calculation
method at the end of the reporting period
□Applicable Not applicable
IV. Analysis of non-primary business
Applicable □Not applicable
In RMB
Proportion in total Sustainable (yes or
Amount Explanation of cause
profit no)
Mainly due to the
gains upon maturity
of wealth
management
products purchased
by the Company, the
-3,539,905.76 -4.46% losses upon maturity Sustainable
income
of forward foreign
exchange contracts
and the losses of
equity investees
during the reporting
period.
It is mainly due to the
fair value changes
obtained by the
Company from
purchasing financial
Gains and losses on
changes in fair value
unexpired part of
forward foreign
exchange contracts
during the reporting
period.
It was mainly due to
the Company's
inventory
depreciation
Impairment of assets -79,106,067.18 -99.75% provision in Sustainable
accordance with
accounting policies
during the reporting
period.
It is mainly due to the
liquidated damages
income
Company during the
reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
It is mainly due to the
litigation-related
expenses by the Company
during the reporting
period.
It was mainly due to
the fact that the
Company received
government
subsidies and
enjoyed preferential
policies of value-
added tax deduction
during the reporting
period.
V. Analysis of assets and liabilities
In RMB
End of the reporting period End of the last year
Proportion Notes to the
Proportion Proportion in increase/ significant
Amount in the total Amount the total decrease change
assets(%) assets(%)
Monetary funds 517,854,162.69 9.33% 449,964,450.38 8.30% 1.03%
Account
receivable
Investment real
estate
Long-term
equity 104,030,653.89 1.87% 107,583,586.91 1.99% -0.12%
investment
Fixed asset 1,541,311,409.66 27.77% 1,657,314,603.81 30.59% -2.82%
Construction in
progress
Right to use
assets
.Contract
liabilities
Long-term loans 242,621,163.05 4.37% 261,718,054.81 4.83% -0.46%
Lease liabilities 10,705,698.47 0.19% 10,415,997.17 0.19% 0.00%
Transactional
financial assets
Accounts
payable
Other payables 142,982,024.31 2.58% 159,826,234.73 2.95% -0.37%
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
□Applicable Not applicable
Applicable □Not applicable
In RMB
Rewards for Gain/Loss Cumulative
Impairment Purchased Sold amount
the key on fair value fair value
Opening provisions in amount in in the Other Closing
management change in change
amount the reporting the reporting reporting change amount
personnel the reporting recorded
period period period
Items period into equity
Financial
assets
assets
measured at
fair value
through profit
or loss
(excluding
derivative
financial
assets)
financial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
equity
Instrument
Investment
Subtotal of
financial 895,602,886.18 7,165,205.48 0.00 0.00 220,000,000.00 215,107,795.34 0.00 907,660,296.32
assets
Accounts
Receivable 22,584,820.72 0.00 0.00 0.00 73,389,940.88 94,467,102.26 0.00 1,507,659.34
Financing
Total 7,165,205.48 0.00 0.00 0.00
Financial
liabilities
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period ?
□Yes No
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) The restricted monetary funds mainly include the funds equivalent to RMB 8,799,040.80 due to the freezing of
accounts and the bill and L/C guarantee of RMB 6,920,565.27.
(2) Restricted notes receivable shall be notes receivable endorsed or discounted by the Company and not yet due
on the balance sheet date.
(3)The restricted fixed assets and intangible assets are mainly the mortgage loans applied for subsidiary SAPO
Photoelectric with part of its self-owned properties from the syndicate led by Bank of Communications Co., Ltd.
Shenzhen Branch, and the guarantee provided by the Company for the mortgage loans. For details, please refer to the
Announcement on the Provision of Guarantees by the Company for Subsidiaries to Apply for Bank Mortgage Loans
(No. 2020-19) and the Announcement on the Progress of the Provision of Guarantees by the Company for
Subsidiaries (No. 2020-46) published by the Company on Cninfo (http://www.cninfo.com.cn).
VI. Analysis of investment status
□Applicable Not applicable
□Applicable Not applicable
Applicable □Not applicable
In RMB
Reason for
Fixed Accumulative Accumulative
Input amount in not meeting
Investment assets actual input Capital Project Estimated realized Disclosure Disclosure index (if
Name Industry involved the Reporting the schedule
method investment amount as of the Source progress revenues revenues as of date (if any) any)
Period and expected
or not period-end the period-end
revenues
Computer,
communication Self-owned
polarizer
and other funds and Company
Production Still under October 16,
Self-build Positions electronic 22,496,919.67 202,451,309.45 loans from 15.18% 0.00 0.00 announcement No.:
line project construction 2025
equipment financial 2025-39
(Line
manufacturing institutions
industry
Tota -- -- -- 22,496,919.67 202,451,309.45 -- -- 0.00 0.00 -- -- --
(1)Securities investment
□Applicable Not applicable
The Company had no securities investment during the reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2)Investment in Derivatives
Applicable □Not applicable
Applicable □Not applicable
Unit:RMB 10,000
Proportion
of ending
Gain/Loss investment
on fair Cumulative Purchase Sales amount to
Derivative Initial value fair value amount amount the
Beginning Ending
investment investment change in change during the during the Company's
amount amount
types amount the recorded reporting reporting net assets
reporting into equity period period at the end
period of the
reporting
period
Forward
foreign
exchange
contracts
Tota 0 11,199.25 -57.21 0 35,849.63 42,423.93 4,624.95 1.00%
The
accounting
policies and
specific
principles of
accounting
for hedging
business
during the
The company conducts recognition and measurement in accordance with Accounting Standards for
reporting
Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and
period, as
Accounting Standards for Business Enterprises No.37 —— Presentation of Financial Instruments, and
well as a
conducts accounting and disclosure for the proposed foreign exchange derivatives trading business to
description of
reflect relevant items on the balance sheet and income statement.
whether
there is a
significant
change
compared
with the
previous
reporting
period
A description
of the actual During the reporting period, the profit and loss of the fair value change of the undelivered Forward
profit and Foreign Exchange Contract was RMB 572,100, and the investment loss of the delivered Forward
loss during Foreign Exchange Contract was RMB 4.3347 million, with impacts on the net profit attributable to the
the reporting parent company of RMB -343,300 and RMB -2,600,800, respectively.
period
Explanation To effectively control the uncertain impact of foreign exchange rate fluctuations on its operating
of hedging performance and enhance financial stability, the company's holding subsidiary, SAPO Photoelectric,
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
effect engages in foreign exchange derivative trading for hedging purposes. To effectively control the
uncertainties caused by significant foreign exchange rate fluctuations on corporate performance, and
enhance the financial stability, SAPO Photoelectric (a subsidiary of the Company) has initiated foreign
exchange derivatives trading for hedging purposes.
Derivative
investment
Self funds
funding
sources
The company's foreign exchange hedging operations are conducted under the "risk-neutral"
management philosophy, with the primary objective of mitigating and preventing currency risks. The
scale of the trading business matches with the actual business, and no speculative or arbitrage
transactions are conducted. However, these hedging activities inherently carry certain risks, which
mainly include: 1. Risk of exchange rate fluctuation: If the trend of foreign exchange rate deviates
significantly from the company's judgment of the direction of exchange rate fluctuation, hedging losses
may occur; 2. Internal control risks: Foreign exchange hedging business is highly professional and
Risk analysis
complex, which may cause risks due to imperfect internal control system; 3. Performance risk: There is
and control
the risk caused by the failure to perform the contract and default in foreign exchange hedging business;
measures of
derivatives
regulations or the violation of relevant laws and regulations by the counterparty, which may cause losses
positions
to the company. Risk control measures taken by the Company: 1. SAPO Photoelectric will implement
during the
the company's "Foreign Exchange Hedging Business Management System" by further refining its
reporting
hedging framework and operational guidelines. The Company will establish clear regulations covering
period
foreign exchange management principles, approval authorities, hedging strategies, internal workflows,
(including but
information segregation measures, risk management mechanisms, risk mitigation procedures, and
not limited to
information disclosure requirements. 2. To mitigate the risks of significant exchange rate fluctuations,
market risk,
SAPO Photoelectric has deployed dedicated professionals in business operations and risk management
liquidity risk,
to control the risk of foreign exchange rate, market analysis, and product research. The Company has
credit risk,
also engaged third-party institutions for expert decision-making support. These teams promptly report
operational
any anomalies, implement emergency measures, and adjust business strategies as needed to minimize
risk, legal
foreign exchange losses. 3. The Company's independent directors have the right to oversee and inspect
risk, etc.)
the use of funds, and may hire professional institutions for audit if necessary. 4. The Company's Audit
Department is the supervisory body for foreign exchange hedging activities, responsible for reviewing
and supervising the actual operations, use of funds, and profit and loss situations, making report to the
Audit Committee of the Board of Directors, urging the Financial Department to handle accounting in a
timely manner, and verifying the accounting treatment. 5. In order to control the risk of transaction
default, SAPO Photoelectric only conducts foreign exchange hedging business with large banks and
other financial institutions with legal qualifications.
The situation
of market
price or fair
value
changes of
products in
the reporting
period of the The company conducts recognition and measurement in accordance with Chapter VII "Determination of
invested Fair Value" of the "Accounting Standards for Business Enterprises No. 22 - Recognition and
derivatives Measurement of Financial Instruments": The change in fair value of foreign exchange contracts
shall be confirmed during the reporting period was RMB -572,100, impacting the net profit attributable to the
disclosed. parent company by RMB -343,300. The fair value of the Foreign Exchange Contract is determined
The analysis according to the bank's foreign exchange product quotation on the balance sheet date.
of the fair
value of
derivatives
shall disclose
the specific
methods
used and the
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
setting of
related
assumptions
and
parameters.
Subject
matter (if Not applicable
applicable)
Derivative
investment
approval
board November 29, 2025
announceme
nt date (if
any)
Derivative
investment
approval
shareholders'
December 24, 2025
meeting
announceme
nt date (if
any)
□Applicable Not applicable
The company did not have derivatives investment for speculative purposes during the reporting period.
□Applicable Not applicable
The Company had no application of the raised capital in the reporting period.
VII. Sale of major assets and equities
□Applicable Not applicable
The Company had no sales of major assets in the reporting period.
□Applicable Not applicable
VIII. Analysis of major holding and participating companies
Applicable □Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Place of
Company name Type Main business Total assets Net assets Turnover Operating profit Net Profit
registration
Polarizer
SAPO
Subsidiary production 583,333,333. 00 4,383,046,367.97 3,332,351,865.19 1,539,256,959.23 59,304,702.90 61,098,591.51
Photoelectric
and sale
Subsidiaries obtained or disposed in the reporting period
□Applicable Not applicable
Description of the main holding and equity participation companies
The financial data of the subsidiary SAPO Photoelectric in the above table are the data of its consolidated financial
statements. For details of its performance fluctuations and reasons for changes, please refer to "III Analysis of primary
business" in "Section III Management Discussion and Analysis".
IX. Structured entities controlled by the Company
□Applicable Not applicable
X. Risks faced by the Company and countermeasures
(I)Macroeconomic risks
At present, the domestic economy is stable and progressing, and the overall situation is repairing. However, the
international environment is complex and severe, geopolitical tensions, and global economic growth is facing
slowdown pressure. As one of the upstream manufacturers in the display product market, the Company cannot rule
out the risk that unpredictable macroeconomic fluctuations may affect the Company's performance.
Countermeasures: The Company will pay close attention to the economic development dynamics at home and
abroad, take the initiative to study and judge the macroeconomic environment, study the national policy orientation,
strengthen the tracking and analysis of major industry information, timely grasp the development trend of the industry,
improve the early warning ability of business risks, and timely adjust the Company's operation and management
strategies according to the market changes. At the same time, the Company will continue to optimize the product
structure, improve the market development ability, strengthen internal management, control business risks, and ensure
the steady development of the Company.
(II) Market risks
As polarizer is a core and key material in the new display industry chain, its development is closely dependent on
the iteration of display panel technology and changes in market demand. Currently, China's polarizer industry is in a
critical period of accelerated domestic substitution, and driven by emerging application scenarios such as ultra-large
sizing, OLED flexibility and automotive displays, the demand for technological upgrading is urgent. If the Company fails
to keep up with the technological development trends in a timely manner, resulting in lagging R&D of new product or
application verification not meeting expectations; Alternatively, intensified industry competition could lead to a decline
in the price of display panel, thereby transmitting the cost pressure to the upstream polarizer segment, which may
adversely affect the Company's operating performance and market competitiveness.
Countermeasures: Under the complex market environment, the Company actively promotes the introduction of
new product clients to stabilize customer confidence; Efficiently advancing the construction of the Line 8 project,
expanding the production capacity of polarizers, and enhancing the supply capacity of high value-added products. At
the same time, it will maintain close communication with customers at all levels, pay attention to the dynamics of
product demand, deeply explore market potential capabilities, optimize product structure, and increase market share;
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In addition, it adheres to technological innovation, improves and optimizes the R&D innovation system, continuously
enhances the product development ability to meet market demand, continuously improves the yield of production lines,
reduces material losses, effectively enhances core competitiveness, and cope with market risks.
(III)Raw materials risk
There are high barriers to the core production technology of upstream materials of polarizers, which are mostly
monopolized by foreign manufacturers, and the localization rate is not high. At present, the key raw materials required
for the manufacture of polarizers, such as PVA film, TAC film and other optical films, are basically monopolized by
Japanese enterprises. The price of the main optical film materials is affected by the production capacity of Japanese
suppliers, market demand and the exchange rate of Japanese yen, thus affecting the unit cost of the Company's
products.
Countermeasures: The Company will continuously optimize the supply chain system, increase the diversified
expansion of suppliers, improve its bargaining power with suppliers, actively explore the localized substitution of
imported raw materials, promote the introduction of highly cost-effective raw materials, steadily upgrade production
management standards, continuously boost equipment utilization rate and reduce the loss rate, maintain production
stability and continuity, and reduce product production costs; If necessary, the Company can choose to take measures
such as forward foreign exchange and foreign exchange options to reduce the cost risk caused by drastic fluctuations
in exchange rates.
(IV)Risks of intensified competition
With major domestic polarizer manufacturers accelerating the construction and expansion of production lines in
recent years, the production capacity of polarizers, especially large-sized polarizers, will continue to grow in the future.
If the downstream consumer market recovers less than expected, the competition in the polarizer industry will further
intensify.
Countermeasures: Facing fierce competition, the Company will strengthen the close cooperation with existing
high-quality customers through excellent product quality and customer service. It will strengthen the synergy efficiency
among various production lines to enhance the profitability of the Company's polarizer business. At the same time, pay
close attention to the dynamics of new product demand, increase R&D investment, optimize product structure,
continuously explore potential markets, and increase market share.
XI. Formulation and implementation of market value management system and
valuation improvement plan
Whether the Company has formulated a market value management system.
□Yes No
Whether the Company has disclosed plans for valuation enhancement.
Yes No
To effectively enhance the investment value of the listed company, increase investor returns, and safeguard the
legitimate rights and interests of both the company and its investors, the company has actively responded to and
implemented regulatory requirements by developing a valuation enhancement plan tailored to its specific
circumstances. The company will focus on improving the quality and efficiency of its core business operations,
innovating its capital management practices, strengthening its incentive and restraint mechanisms, prioritizing
shareholder returns, enhancing the quality of information disclosure and the depth of investor communication,
reinforcing compliance and risk management measures, embracing sustainable development principles, and
continuously driving the enhancement of the company's investment value.
In accordance with the relevant provisions of the "Regulatory Guidelines for Listed Companies No.10 – Market
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Capitalization Management" and the Company's Articles of Association, among other applicable regulations, the
Company held its Fourth Meeting of the Ninth Board of Directors on August 18,2026, at which the "Proposal on
Formulating the' Valuation Enhancement Plan '" was reviewed and approved. For further details, please refer to the
Company's "Announcement on the Valuation Enhancement Plan" (No.2026-29) published on the CNINFO Information
Network (http://www.cninfo.com.cn) on August 19,2026.
XII. Implementation of the action plan of "double improvement of quality and
return"
Whether the company has disclosed the announcement of the action plan of "double improvement of quality return".
□Yes No
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section IV Corporate governance, Environment and Society
I. Changes in directors and senior officers of the Company
Applicable □Not applicable
Name Positions Types Date Reason
Description of his Left for term
Wang Chuan May 20, 2026 Change of term
position in other units expiration
Description of his Left for term
Meng Fei May 20, 2026 Change of term
position in other units expiration
Remuneration to
directors, supervisors
Left for term
Wang Kai and senior May 20, 2026 Change of term
expiration
executives in the
reporting period
Secretary to the Left for term
Huang Min May 20, 2026 Change of term
board of directors expiration
Description of his
Gong Daihui Elected May 20, 2026 Change of term
position in other units
Description of his
Guo Jinjie Elected May 20, 2026 Change of term
position in other units
Remuneration to
directors, supervisors
Sun Xiaowei and senior Elected May 20, 2026 Change of term
executives in the
reporting period
Secretary to the
Guo Yu Employment May 20, 2026 Change of term
board of directors
II. Profit distribution and conversion of capital reserves into share capital during
the reporting period
□Applicable Not applicable
The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital
for half a year.
III. Implementation of the Company's equity incentive plan, employee stock
ownership plan or other employee incentive measures
□Applicable Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other
employee incentive measures and their implementation.
IV. Environmental information disclosure
Whether the listed company and its main subsidiaries are included in the list of enterprises required to disclose the
environmental information by law
Yes □No
Number of enterprises included in the list of enterprises legally disclosing
environmental information
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Inquiry index of environmental
No Company name information disclosure report
according to law
Public website of Department of
Ecology and Environment of
app.gdeei.cn/gdeepub/front/dal/dal/n
ewindex)
V. Social responsibilities
In the Reporting Period, the Company actively fulfilled its corporate social responsibility, actively participated in
consumption assistance work, and completed consumption assistance procurement of RMB 435,100. The company
disclosed the "2025 Environmental, Social and Corporate Governance (ESG) Report", which systematically displayed
the company's achievements in environmental, social and corporate governance in 2025. For details, please refer to
the "2025 Environmental, Social and Corporate Governance (ESG) Report" of Cninfo (http://www.cninfo.com.cn) on
May 21, 2026.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section V Significant Events
I. Commitments made by the Company's actual owner, shareholders, related
parties, acquirers, the Company and other related parties that have been fulfilled
within the reporting period and those that have not been fulfilled as of the end of
the reporting period
□Applicable Not applicable
□Applicable Not Applicable During the reporting period, there were no commitments that have been fulfilled by the
Company's actual controller, shareholders, related parties, acquirers, the Company and other related parties during the
reporting period and have not been fulfilled beyond the time limit as of the end of the reporting period.
II. Particulars about the non-operating occupation of funds by the controlling
shareholder
□Applicable Not applicable
None
III. Illegal provision of guarantees for external parties
□Applicable Not applicable
None
IV. Appointment and dismissal of the accounting firm
Whether the semi-annual financial report has been audited
□Yes No
The Company's semi-annual report has not been audited.
V. Explanation of the Board of Directors on the "modified audit report" of the
accounting firm during the reporting period
□Applicable Not applicable
VI. Explanation of the Board of Directors on the "Modified Audit Report" of the
previous year
□Applicable Not applicable
VII. Matters relating to bankruptcy and reorganization
□Applicable Not applicable
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
VIII. Litigation matters
Significant litigation and arbitration
□Applicable Not applicable
There were no significant litigation or arbitration during the reporting period.
Other litigation matters
Applicable □Not applicable
Amount
Whether to
involved
General form Decisions Execution Disclosure Disclosure
(Ten Progress
information estimated and effects of decisions date index
thousand
liabilities
yuan)
During the
reporting
period, the
Company
had 10
litigation
and
By the end
arbitration
of the
cases that
reporting
did not
period,
meet the
among the
disclosure
standards
aforementio of the
for major
ned cases, reporting
litigation,
including 5
dispute and The concluded
labor
dispute
vehicle cases had being
cases, 2
traffic no material executed or
disputes 10,129 No /
accident adverse completed,
over
liability impact on which had
international
dispute had the no
goods sales
been tried Company. significant
contracts, 1
and closed, adverse
dispute over
and the impact on
liability for
remaining 8 the
harming
cases were company.
shareholder
still being
s' interests,
tried by
courts or
over equity
arbitration
transfer,
institutions.
and 1
dispute over
liability for
motor
vehicle
traffic
accidents.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
IX. Penalties and rectification
□Applicable Not applicable
None
X. Integrity status of the Company and its controlling shareholders and actual
owner
Applicable □Not applicable
No such cases in the Reporting Period.
XI. Major related party transactions
Applicable □Not applicable
Related Pricing Amount of Ratio of Approved Settlement Prevailing
Type of Content of Price of Exceeds
parties to Related principles of related party similar transaction method of market price Disclosure Disclosure
related party related party related party approved
the relationship related party transactions transaction quota related party for similar date index
transactions transaction transactions quota
transactions transactions (RMB10,000) amount (RMB10,000) transactions transactions
One of the
Xinmei
directors of Purchase of Fair pricing
Fontana Settlement
the raw Purchase of with
Holding Agreed- based on Not June 27, Announcement
Company is materials raw reference to 6,417.5 4.95% No
(Hong upon price the agreed- applicable 2026 No.: 2026-23
a director of from related materials market
Kong) upon price
SAPO parties prices
Limited
Photoelectric
One of the
Kunshan directors of Purchase of Fair pricing
Settlement
Xinmei the raw Purchase of with
Agreed- based on Not June 27, Announcement
Optical Company is materials raw reference to 4,816.37 3.71% No
upon price the agreed- applicable 2026 No.: 2026-23
Technology a director of from related materials market
upon price
Co., Ltd. SAPO parties prices
Photoelectric
Tota -- -- 11,233.87 -- 31,628.6 -- -- -- -- --
Detailed circumstances of large-scale sales returns Not applicable
Give the actual situation in the Reporting Period (if Xinmei Fontana Holding (Hong Kong) Limited is the sub-subsidiary of Hefei Xinmei Materials Technology Co., Ltd. (hereinafter referred to as
any) where an estimate had been made for the total "Hefei Xinmei"), and Kunshan Xinmei Optical Technology Co., Ltd. is a subsidiary of Hefei Xinmei. In 2026, the related-party transaction quota
value of continuing related-party transactions by type approved by the Company to be carried out with Hefei Xinmei and its subsidiaries was RMB 316.286 million. The actual related-party
to occur in the Reporting Period transaction amount during the reporting period was RMB 112.3387 million, which did not exceed the approved transaction quota.
Reasons for significant deviations between transaction
Not applicable
prices and market reference prices (if applicable)
□Applicable Not applicable
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
□Applicable Not applicable
None
Applicable Not applicable
During the reporting period, the Company did not have any related-party credit or debt transactions.
Company
□Applicable Not applicable
None
□Applicable Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the Company
and related parties.
□Applicable Not applicable
The Company had no other major related party transactions during the reporting period.
XII. Major contracts and their performance
(1)Entrustment
□Applicable Not applicable
No such cases in the reporting period.
(2)Contracting
□Applicable Not applicable
No such cases in the reporting period.
(3)Leasing
□Applicable Not applicable
No such cases in the reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
II. Other significant contract
Applicable □Not applicable
Unit:RMB 10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
Guarantee of the company for its subsidiaries
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
From the
date the
guarantee
agreement
Joint and
takes effect
SAPO March September several
Photoelectric 18,2020 8,2020 liability
when the
guarantee
actual loan
performance
period
expires
Total of guarantee for Total of actual guarantee for
subsidiaries approved in the 0 subsidiaries in the period -1,246.49
period(B1) (B2)
Total balance of guarantees
Total of guarantee for
for subsidiaries as at the
subsidiaries approved at 48,000 8,827.46
end of the reporting period
period-end(B3)
(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee quota Total amount of guarantee
approved in the reporting 0 actually incurred in the -1,246.49
period(A1+B1+C1) reporting period(A2+B2+C2)
Total guarantee quota
Total balance of guarantees
already approved at the end
of the reporting
period (A4+B4+C4)
period(A3+B3+C3)
Total outstanding guarantees (i.e., A4+B4+C4) as a
percentage of the Company's net assets
Including:
Amount of guarantee for shareholders, actual controller
and its associated parties(D)
The debts guarantee amount provided for the Guaranteed
parties whose assets-liability ratio exceed 70% directly or 0
indirectly(E)
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Proportion of total amount of guarantee in net assets of the
company exceed 50%(F)
Total guarantee Amount of the abovementioned
guarantees(D+E+F)
Situations where there is guarantee liability or evidence
indicating the possibility of joint and several repayment
Not applicable
liability for unexpired guarantee contracts during the
reporting period (if any)
Explanation of provision of guarantee to external parties in
Not applicable
violation of the prescribed procedures (if any)
Explanation of the specific situation of the guarantee by the adoption of composite method
None
Applicable □Not applicable
Unit:RMB 10,000
Balance of entrusted
Product category Risk characteristics wealth management during Amount overdue
the reporting period
Bank financial products Medium-low risk 65,889.23 0
Publicly offered fund
Low risk 8,950.64 0
products
Details of high-risk entrusted wealth management where the Company, as a single client, entrusts a financial institution
for asset management, or invests in products with low safety and poor liquidity
□Applicable Not applicable
□Applicable Not applicable
No such cases in the reporting period.
XIII. Registration form for reception, survey, communication, interview and other
activities during the reporting period
Applicable □Not applicable
Main contents
Type of Index of basic
Reception Reception Reception Reception discussed and
reception information of
time place mode object information
object the survey
provided
Main content:
when the For details,
Online Company will please refer to
Value Online communicatio change its the Investor
General
April 20, 2026 (www.ir- n on the Others name, Relations
investors
online.cn) network whether there Activity
platform are plans to Record Form
increase (No. 2026-01)
holdings and published by
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
cancel shares, Shenzhen
the status of Textile
Line 8, and (Holdings)
how to Co., Ltd. on
conduct Cninfo
market value (http://www.cn
management. info.com.cn).
Data
provided:
none.
XIV. Explanation on other significant events
Applicable Not applicable
Regarding the 2026 Stock Option Incentive Plan
To further establish and strengthen the Company's long-term incentive mechanism, attract and retain outstanding
talent, fully mobilize the enthusiasm of the Company's core team, effectively align the interests of shareholders, the
Company, and employees, and ensure that all parties jointly focus on the Company's long-term development, the
Company, while fully safeguarding the interests of shareholders and in accordance with the principle of "equity
between returns and contributions," held the Fourth Meeting of the Ninth Board of Directors on August 18,2026, at
which the following resolutions were adopted: "Resolution on the' 2026 Stock Option Incentive Plan (Draft) 'and its
Summary," "Resolution on the' Assessment and Management Measures for the 2026 Stock Option Incentive Plan ',"
and "Resolution on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters
Related to the 2026 Stock Option Incentive Plan." For detailed information, please refer to the "2026 Stock Option
Incentive Plan (Draft)" and its "Summary" published by the Company on the Cninfo website (http://www.cninfo.com.cn)
on August 19,2026..
XV. Significant event of subsidiary of the Company
Applicable □Not applicable
On October 15, 2025, the Company held the 45th meeting of the 8th Board of Directors, at which the "Proposal on
Investment and Construction of 1.49m-wide Polarizer Production Line Project (Line 8) by a Subsidiary" was deliberated
and approved. It is agreed that the subsidiary, Shenzhen SAPO Photoelectric Co., Ltd., based on the market demand
for polarizers and its own development needs, would use a combination of its own funds and bank loans, with a
planned total investment of approximately RMB 1.334 billion, to build a new plant building and supporting facilities by
purchasing land in Pingshan District, Shenzhen, and to purchase equipment and instruments to construct a 1.49m-
wide LCD and OLED polarizer production line with a designed capacity of approximately 18 million square meters per
year. For details, please refer to the "Announcement on Investment and Construction of 1.49m-wide Polarizer
Production Line Project (Line 8) by a Subsidiary" (No. 2025-39) published by the Company on Cninfo
(http://www.cninfo.com.cn) on October 16, 2025. As of the end of this reporting period, the pile foundation engineering
construction of the project was advancing steadily, and the project was about to enter the main building construction
stage of the plant.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section VI Share Changes and Shareholder Information
I. Changes in share capital
In shares
Before the change Increase/decrease(+，-) After the Change
Capitalization
Issuance of Bonus
Quantity Proportion of public Others Subtotal Quantity Proportion
new share shares
reserve
conditional 0 0.00% 0 0 0 0 0 0 0.00%
subscription
shares
legal person shares
shares
Incl:Domestic
legal person shares
Domestic
Natural Person 0 0.00% 0 0 0 0 0 0 0.00%
shares
Incl:Foreign
legal person share
Foreign Natural
Person shares
II.Shares with
unconditional 506,521,849 100.00% 0 0 0 0 0 506,521,849 100.00%
subscription
shares in RMB
in domestic market
in foreign market
III. Total of capital
shares
Reasons for share changed
□Applicable Not applicable
Approval of Change of Shares
□Applicable Not applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Ownership transfer of share changes
□Applicable Not applicable
Progress in implementation of share repurchase
□Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable Not applicable
Progress on any share repurchase: □ Applicable √ Not applicable Progress on reducing the repurchased shares by
means of centralized bidding: □ Applicable √ Not applicable Influence on the basic EPS and diluted EPS as well as
other financial indexes of net assets per share attributable to common shareholders of Company in latest year and
period
□Applicable Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable Not applicable
□Applicable Not applicable
II. Securities issue and listing
□Applicable Not applicable
III. Number of the Company's shareholders and shareholding ratios
In shares
Total number of preferred shareholders
Total number of common
with restoration of voting rights at the
shareholders at the end 31,210 0
end of the reporting period (if any) (see
of the reporting period
Note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders(Excluding shares lent through
refinancing)
Number of Number of share
Proportion Changes in Amount of Amount of pledged/frozen
Name of the Nature of shares held
of shares reporting restricted un-restricted
shareholder shareholder at period - State of
held(%) period shares held shares held Quantity
end share
Shenzhen
Investment Not
State-owned 46.21% 234,069,436 0 0 234,069,436 0
Holdings applicable
Co., Ltd
Shenzhen
Shenchao
Not
Technology State-owned 3.18% 16,129,032 0 0 16,129,032 0
applicable
Investment
Co., Ltd.
Overseas
Not
HKSCC Legal 2.02% 10,216,777 4,074,411 0 10,216,777 0
applicable
person
Sun Domestic Not
Huiming Nature applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
person
Domestic
Chen Not
Nature 0.77% 3,920,620 -571,300 0 3,920,620 0
Xiaobao applicable
person
Domestic
Su Weipeng Nature 0.71% 3,580,000 -100 0 3,580,000 Pledge 3,000,000
person
Domestic
Not
Li Zengmao Nature 0.61% 3,090,597 1,400 0 3,090,597 0
applicable
person
Domestic
Not
Sun Wenbo Nature 0.41% 2,066,700 0 0 2,066,700 0
applicable
person
China
Construction
Bank
Corporation
- GF
Quantitative
Not
Multi-factor State-owned 0.25% 1,252,000 1,252,000 0 1,252,000 0
applicable
Flexible
Allocation
Mixed
Securities
Investment
Fund
Domestic
Not
Li Jue Nature 0.22% 1,137,400 -58,500 0 1,137,400 0
applicable
person
Strategy investors or
general legal person
becomes top 10
None
shareholders due to rights
issued (if applicable)(See
Notes 3)
Among the top 10 common shareholders, Shenzhen Investment Holdings Co., Ltd. and
Explanation on Shenzhen Shenchao Technology Investment Co., Ltd. do not constitute a concerted party
shareholders participating relationship. Except for the above two entities, the Company is temporarily unaware of
in the margin trading whether there is any associated relationship among the other top 10 common shareholders,
business nor can it confirm whether they constitute concerted parties as defined in the Measures for
the Administration of the Takeover of Listed Companies.
Above shareholders
entrusting or entrusted
None
with voting rights, or
waiving voting rights
Top 10 shareholders
including the special
None
account for repurchase (if
any) (see note 11)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Quantity of unrestricted shares held at the end of the reporting Share type
Name of the shareholder
period Share type Quantity
Shenzhen Investment Common
Holdings Co., Ltd shares in
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
RMB
Shenzhen Shenchao Common
Technology Investment 16,129,032 shares in 16,129,032
Co., Ltd. RMB
Common
HKSCC 10,216,777 shares in 10,216,777
RMB
Foreign
shares in
Sun Huiming 8,088,853 8,088,853
domestic
market
Common
Chen Xiaobao 3,920,620 shares in 3,920,620
RMB
Common
Su Weipeng 3,580,000 shares in 3,580,000
RMB
Common
Li Zengmao 3,090,597 shares in 3,090,597
RMB
Common
Sun Wenbo 2,066,700 shares in 2,066,700
RMB
China Construction Bank
Corporation - GF
Common
Quantitative Multi-factor
Flexible Allocation Mixed
RMB
Securities Investment
Fund
Common
Li Jue 1,137,400 shares in 1,137,400
RMB
Explanation of the related
relationship or concerted
Among the top 10 common shareholders, Shenzhen Investment Holdings Co., Ltd. and
action among the top 10
Shenzhen Shenchao Technology Investment Co., Ltd. do not constitute a concerted party
shareholders not subject
relationship. In addition, the Company does not know whether there is a related relationship
to trading restrictions, and
between the top 10 ordinary shareholders, nor does it know whether they are persons acting
between the top 10
in concert as stipulated in the Administrative Measures for the Acquisition of Listed
shareholders not subject
Companies.
to trading restrictions and
the top 10 shareholders
Explanation on
shareholders participating
in the margin trading None
business(if any )(See
Notes 4)
Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders
of unrestricted tradable shares in refinancing business and lending shares
□Applicable Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the
previous period due to refinancing lending/repayment
□Applicable Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
□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.
IV. Changes in shareholdings of directors and senior officers
□Applicable Not applicable
There was no change in the shareholdings of the Company's directors and senior officers during the reporting period.
For details, please refer to the 2025 Annual Report.
V. Changes in controlling shareholders or actual controllers
If the Company previously disclosed that the actual controller planned a change of control but it has not been
completed, please explain the progress of the change of control.
□Applicable Not applicable
Changes of controlling shareholder in reporting period
□Applicable Not applicable
No changes of controlling shareholder for the Company in reporting period.
Changes of controlling shareholder in reporting period
□Applicable Not applicable
No changes of controlling shareholder for the Company in reporting period
VI. Preferred shares
□Applicable Not applicable
The Company had no preferred shares in the reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section VII Bonds
□Applicable Not applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Section VIII Financial Statements
I. Audit report
Whether the semi-annual report has been audited
□Yes No
The Company's semi-annual financial report has not been audited.
II. Financial statements
The unit in the notes to the financial statements is: RMB
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
June 30, 2026
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Current asset:
Monetary funds 517,854,162.69 449,964,450.38
Notes receivable 33,936,675.37 85,980,246.52
Financings receivable 1,507,659.34 22,584,820.72
Other receivable 4,783,576.95 4,324,973.02
Including: Interest receivable 0.00 0.00
Dividend receivable 893,982.69 0.00
Including: data resources 0.00 0.00
Total of current assets 3,181,328,890.65 3,060,436,389.04
Non-current assets:
Investment in other equity
instruments
Fixed asset 1,541,311,409.66 1,657,314,603.81
Intangible asset 79,112,514.87 31,224,598.20
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Deferred income tax assets 58,056,027.64 55,777,290.89
Total of non-current assets 2,368,903,544.45 2,357,859,327.73
Total of assets 5,550,232,435.10 5,418,295,716.77
Current liabilities
Derivative financial liabilities 572,148.11 4,071,800.19
Accounts payable 479,599,097.76 344,656,835.89
Other payables 142,982,024.31 159,826,234.73
Including:Interest payable 0.00 0.00
Dividend payable 0.00 0.00
within 1 year
Other current liabilities 63,264,425.58 88,386,795.27
Total of current liability 833,725,377.05 725,262,112.73
Non-current liabilities:
Long-term loans 242,621,163.05 261,718,054.81
Deferred income tax assets 48,006,838.91 47,064,430.16
Total non-current liabilities 375,239,314.46 402,668,431.17
Total liabilities 1,208,964,691.51 1,127,930,543.90
Owners' equity:
Total equity attributable to owners of
the parent company
Minor shareholders’ equity 1,335,085,040.29 1,310,645,603.69
Total owners' equity 4,341,267,743.59 4,290,365,172.87
Total liabilities and owners' equity 5,550,232,435.10 5,418,295,716.77
Legal representative: LI Gang Principal Chief Finance Officer: LIU Yu Chief Accountant: LI Zhenyu
In RMB
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Rewards for the key management
Ending balance Beginning balance
personnel Items
Current asset:
Monetary funds 12,374,641.67 24,473,234.70
Other receivable 1,549,862.15 2,014,545.65
Including:Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Total of current assets 770,247,807.56 771,739,621.65
Non-current assets:
Investment in other equity
instruments
Fixed asset 1,645,919.94 1,910,229.22
Intangible asset 221,276.98 48,270.75
Total of non-current assets 2,294,406,952.21 2,301,431,751.45
Total of assets 3,064,654,759.77 3,073,171,373.10
Current liabilities
Accounts payable 194,131.97 194,131.97
Other payables 94,297,429.11 93,730,387.66
Including:Interest payable 0.00 0.00
Dividend payable 0.00 0.00
within 1 year
Total of current liability 118,055,439.60 119,161,093.04
Non-current liabilities:
Deferred income tax assets 33,500,105.11 32,534,099.01
Other non-current liabilities
Total non-current liabilities 35,437,155.77 34,604,156.61
Total liabilities 153,492,595.37 153,765,249.65
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Owners' equity:
Total owners' equity 2,911,162,164.40 2,919,406,123.45
Total liabilities and owners' equity 3,064,654,759.77 3,073,171,373.10
In RMB
Rewards for the key management
Half year period of 2026 Half year period of 2025
personnel Items
I. Total operating revenue 1,588,723,198.14 1,600,481,626.31
Including: operating revenue 1,588,723,198.14 1,600,481,626.31
II. Total operating costs 1,450,409,689.38 1,519,243,714.80
Including: operating costs 1,322,616,178.72 1,362,512,734.09
Including: Interest
expenses
Interest income 1,433,948.01 2,493,076.60
Add:Other income 17,367,048.85 18,162,062.42
Investment income ("-" for
-3,539,905.76 130,107.09
losses)
Including: investment
income from associates and joint -3,311,433.02 -3,645,599.07
ventures
Financial assets
measured at amortized cost cease to 0.00 0.00
be recognized as income
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses)
Assets impairment losses ("-"
-79,106,067.18 -55,273,530.83
for loss)
Gains from disposal of assets
("-" for losses)
III. Operating profit ("-" for losses) 79,903,425.08 52,146,171.91
Add:Non-Operating income 175,972.60 3,104,116.81
Less:Non-Operating expenses 774,974.25 57,900.79
IV. Total profits ("-" for total loss) 79,304,423.43 55,192,387.93
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Less:Income tax expenses 4,088,822.46 7,663,966.35
V. Net profit ("-" for net losses) 75,215,600.97 47,528,421.58
(I) Classified by operating
sustainability
operation ("-" for net losses)
operations ("-" for net losses)
(II) Classified by ownership
shareholders of the parent company 50,776,164.37 35,234,765.52
("-" for net losses)
for net losses)
VI. Other comprehensive income, net
of tax
Other comprehensive income, net
of tax, attributable to owners of 0.00 0.00
parent company
(I) Other comprehensive income
that cannot be reclassified into profit 0.00 0.00
or loss later
benefit plans of changes in net debt 0.00 0.00
or net assets
income under the equity method
investee can not be reclassified into
profit or loss.
investments in other equity 0.00 0.00
instruments
the company’s credit risks
(II) Other comprehensive income
that will be reclassified into profit or 0.00 0.00
loss
income under the equity method
investee can be reclassified into
profit or loss.
investments in other debt obligations
income arising from the 0.00 0.00
reclassification of financial assets
impairments in investments in other 0.00 0.00
debt obligations
currency financial statements
Net of profit of other
comprehensive income attributable to
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Minority shareholders’ equity
VII. Total comprehensive income 75,215,600.97 47,528,421.58
Total comprehensive income
attributable to the owner of the parent 50,776,164.37 35,234,765.52
company
Total comprehensive income
attributable minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.1002 0.0696
(II) Diluted earnings per share 0.1002 0.0696
In case of any business combination under the same control in the current period, the net profit realized by the
combinee before the combination was RMB0.00, and the net profit realized by the combinee in the previous period
was RMB 0.00.
Legal representative: LI Gang Principal Chief Finance Officer: LIU Yu Chief Accountant: LI Zhenyu
In RMB
Rewards for the key management
Half year period of 2026 Half year period of 2025
personnel Items
I.Operating revenue 37,217,931.31 38,597,362.56
Less:Operating cost 5,231,095.08 5,734,623.16
Including:Interest expenses 43,575.48 2,831.38
Interest income 102,386.80 290,763.85
Add:Other income 63,874.41 100,758.85
Investment income ("-" for
losses)
Including: investment
income from associates and joint -3,311,433.02 -3,645,599.07
ventures
Gains from
derecognition of financial assets
measured by amortized costs ("-" for
losses)
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses)
II. Operating profit ("-" for losses) 22,304,487.52 22,671,560.75
Add:Non-Operating income 0.00 0.05
Less:Non-Operating expenses 304.05 27,285.06
III. Total profit ("-" for total loss) 22,304,183.47 22,644,275.74
Less:Income tax expenses 6,235,112.27 5,598,253.84
IV. Net profit ("-" for net losses) 16,069,071.20 17,046,021.90
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(I) Net profit from continued
operation ("-" for net losses)
(II) Net profit from discontinued
operation ("-" for net losses)
V. Net after-tax of other
comprehensive income
(I) Other comprehensive income
that cannot be reclassified into profit 0.00 0.00
or loss later
benefit plans of changes in net debt 0.00 0.00
or net assets
income under the equity method
investee can not be reclassified into
profit or loss.
investments in other equity 0.00 0.00
instruments
the company’s credit risks
(II) Other comprehensive income
that will be reclassified into profit or 0.00 0.00
loss
income under the equity method
investee can be reclassified into
profit or loss.
investments in other debt obligations
income arising from the 0.00 0.00
reclassification of financial assets
impairments in investments in other 0.00 0.00
debt obligations
currency financial statements
VI. Total comprehensive income 16,069,071.20 17,046,021.90
In RMB
Rewards for the key management
Half year period of 2026 Half year period of 2025
personnel Items
I.Cash flows from operating activities
Cash received from sales of goods
or rending of services
Tax returned 39,383,653.63 0.00
Other cash received relevant to
operating activities
Sub-total of cash inflow 1,651,225,354.36 1,739,493,018.04
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for
staffs
Taxes paid 29,015,015.83 27,343,241.72
Other cash paid related to
operating activities
Sub-total of cash outflow from
business activities
Net cash flows arising from operating
activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 4,111,576.24 8,334,676.03
Net cash retrieved from disposal of
fixed assets, intangible assets, and 40,694.10 3,431,771.50
other long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Cash received in connection with
significant investment activities
Sub-total of cash inflow due to
investment activities
Cash paid to acquire and construct
fixed assets, intangible assets and 149,255,811.29 6,414,300.56
other long-term assets
Cash paid as investment 0.00 0.00
Net increase in pledge loans 0.00 0.00
Net cash received from
subsidiaries and other operational 0.00 0.00
units
Cash paid related to other
investment activities
Sub-total of cash outflow due to
investment activities
Net cash flow generated by
-158,510,077.47 23,352,146.97
investment
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Including: Cash received as
investment from minor shareholders
Cash received as loans 24,230,052.00 0.00
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
Cash to repay debts 30,736,765.00 20,736,765.00
Cash paid as dividend, profit, or
interests
Including: dividends and profit paid
to minority shareholders by 0.00 0.00
subsidiaries
Cash paid related with financing 5,564,480.21 6,983,290.34
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing -40,680,121.96 -67,003,672.36
IV. Influence of exchange rate
alternation on cash and cash -1,103,841.83 -6,543,513.79
equivalents
V. Net increase in cash equivalents 52,637,003.09 275,139,281.81
Plus: beginning balance of cash
equivalents
VI. Ending balance of cash
equivalents
In RMB
Rewards for the key management
Half year period of 2026 Half year period of 2025
personnel Items
I.Cash flows from operating activities
Cash received from sales of goods
or rending of services
Tax returned 0.00 0.00
Other cash received relevant to
operating activities
Sub-total of cash inflow 45,578,987.85 42,650,018.56
Cash paid for purchasing of
merchandise and services
Cash paid to staffs or paid for
staffs
Taxes paid 7,642,890.25 9,256,504.29
Other cash paid related to
operating activities
Sub-total of cash outflow from
business activities
Net cash flows arising from operating
activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 6,311,576.24 9,852,176.03
Net cash retrieved from disposal of
fixed assets, intangible assets, and 0.00 0.00
other long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Cash received in connection with
significant investment activities
Sub-total of cash inflow due to
investment activities
Cash paid to acquire and construct
fixed assets, intangible assets and 945,212.97 640,844.32
other long-term assets
Cash paid as investment 0.00 0.00
Net cash received from
subsidiaries and other operational
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
units
Cash paid related to other
investment activities
Sub-total of cash outflow due to
investment activities
Net cash flow generated by
investment
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Cash received as loans 0.00 0.00
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
Cash to repay debts 0.00 0.00
Cash paid as dividend, profit, or
interests
Cash paid related with financing
activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing -24,578,623.84 -35,963,029.09
IV. Influence of exchange rate
alternation on cash and cash -4,215.05 -1,250.15
equivalents
V. Net increase in cash equivalents -12,098,593.03 8,778,045.85
Plus: beginning balance of cash
equivalents
VI. Ending balance of cash
equivalents
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
The current period
In RMB
Half year period of 2026
Rewards for the key management Equity attributable to owners of the parent company
personnel Items 37. Other Minor shareholders’
reserves reserves
income
I. Ending balance last year 506,521,849.00 1,961,599,824.63 102,271,832.32 106,805,904.93 302,520,158.30 2,979,719,569.18 1,310,645,603.69 4,290,365,172.87
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning
of this year
III. Changes in amount for the current
period ("-" for decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 50,776,164.37 50,776,164.37 24,439,436.60 75,215,600.97
(II) Capital contributed or reduced by
owners
owners
other equity instruments
recognized in owners' equity
(III) Profit distribution 0.00 0.00 0.00 0.00 -24,313,030.25 -24,313,030.25 0.00 -24,313,030.25
shareholders)
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
paid-in capital (or share capital)
paid-in capital (or share capital)
reserves.
to retained earnings
over retained earnings
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
period
amount of prior year
In RMB
Half year period of 2026
Rewards for the key management Equity attributable to owners of the parent company
Minor shareholders’
personnel Items 37. Other Total owners' equity
reserves reserves profits
income
I. Ending balance last year 506,521,849.00 1,961,599,824.63 106,877,807.32 104,262,315.64 272,608,113.66 2,951,869,910.25 1,283,450,723.88 4,235,320,634.13
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning 506,521,849.00 1,961,599,824.63 106,877,807.32 104,262,315.64 272,608,113.66 2,951,869,910.25 1,283,450,723.88 4,235,320,634.13
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of this year
III. Changes in amount for the current
period ("-" for decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 35,234,765.52 35,234,765.52 12,293,656.06 47,528,421.58
(II) Capital contributed or reduced by
owners
equity instruments
recognized in owners' equity
(III) Profit distribution 0.00 0.00 0.00 0.00 -35,963,029.09 -35,963,029.09 0.00 -35,963,029.09
shareholders)
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
paid-in capital (or share capital)
paid-in capital (or share capital)
retained earnings
over retained earnings
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
period
The current period
In RMB
Half year period of 2026
Rewards for the key management personnel Items 37. Other
income
I. Ending balance last year 506,521,849.00 1,577,392,975.96 93,862,232.32 106,805,904.93 634,823,161.24 2,919,406,123.45
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning of this year 506,521,849.00 1,577,392,975.96 93,862,232.32 106,805,904.93 634,823,161.24 2,919,406,123.45
III. Changes in amount for the current period ("-" for
decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 16,069,071.20 16,069,071.20
(II) Capital contributed or reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00
instruments
equity
(III) Profit distribution 0.00 0.00 0.00 0.00 -24,313,030.25 -24,313,030.25
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
share capital)
earnings
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current period 506,521,849.00 1,577,392,975.96 93,862,232.32 106,805,904.93 626,579,202.19 2,911,162,164.40
Amounts for the Prior Year
In RMB
Half year period of 2025
Rewards for the key management personnel Items
income
I. Ending balance last year 506,521,849.00 1,577,392,975.96 98,116,532.32 104,262,315.64 647,893,886.69 2,934,187,559.61
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning of this year 506,521,849.00 1,577,392,975.96 98,116,532.32 104,262,315.64 647,893,886.69 2,934,187,559.61
III. Changes in amount for the current period ("-" for 0.00 0.00 0.00 0.00 -18,917,007.19 -18,917,007.19
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 17,046,021.90 17,046,021.90
(II) Capital contributed or reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00
instruments
owners' equity
(III) Profit distribution 0.00 0.00 0.00 0.00 -35,963,029.09 -35,963,029.09
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
share capital)
earnings
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current period 506,521,849.00 1,577,392,975.96 98,116,532.32 104,262,315.64 628,976,879.50 2,915,270,552.42
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
III. Company profile
Shenzhen Textile (Holdings) Co., Ltd. (hereinafter referred to as "the Company") is a joint stock limited company
registered in Guangdong Province. The Company was listed on Shenzhen Stock Exchange in August 1994. The
Company has publicly issued RMB ordinary shares (A shares) and domestically listed foreign shares (B shares) to the
domestic and foreign public respectively, and listed for trading.
Headquartered in Shenzhen, Guangdong Province, the main business of the Company and its subsidiaries
(hereinafter referred to as "the Group") includes the research and development, production and marketing of polarizers
for liquid crystal display, as well as property management business mainly located in the prosperous commercial area
of Shenzhen.
The financial statements have been authorized for issuance of Board of Directors of the Company on [August 24,
IV. Basis for preparation of financial statements
The Group implements the accounting standards for enterprises and related regulations promulgated by the
Ministry of Finance. In addition, the Group also discloses relevant financial information in accordance with the No. 15
Compilation Rules for Disclosure of Information by Companies of Issuing Securities to the Public-General Provisions
for Financial Reporting (2023 Revision).
The Group evaluated its ability to continue as a going concern for the 12 months from 30 June 2026 and found no
matters or circumstances that raised significant doubts about its ability to continue as a going concern. Accordingly,
the present financial report has been prepared on the basis of going concern assumptions.
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which are
measured at fair value, the financial report uses the historical cost as the measurement basis. If the asset is impaired,
the corresponding impairment provision will be made in accordance with the relevant regulations.
Under historical cost measurement, an asset is measured at the fair value of the amount of cash or cash
equivalents paid or the consideration paid at the time of acquisition. Liabilities are measured by the amount of money
or assets actually received as a result of the present obligation is assumed, or the contractual amount of the present
obligation is incurred, or the amount of cash or cash equivalents expected to be paid in the ordinary course of life to
repay the liability.
Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay for a
transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value is
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
observable or estimated using valuation techniques, the fair value measured and disclosed in this financial report is
determined on that basis.
For financial assets where the transaction price is taken as the fair value at initial recognition and valuation
techniques involving unobservable input value are used in the subsequent measurement of fair value, the valuation
techniques are corrected during the valuation process to make the initial recognition result determined by the valuation
techniques equal to the transaction price.
Fair value measurement is divided into three levels as to the observability of fair value inputs, and the importance
of such inputs to fair value measurement as a value inputs, and the importance of such inputs to fair value
measurement as a whole:
? The first level of input is the unadjusted quotation of the same asset or liability in an active market that can
be obtained at the measurement date.
? The second-level input value is the input value that is directly or indirectly observable for the underlying
asset or liability in addition to the first-level input.
? The third level input value is the unobservable input value of the underlying asset or liability.
V. Significant accounting policies and accounting estimates
Tips of specific accounting policies and accounting estimates:
None
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises, and truly and completely reflect the Company's consolidated and parent company's financial
position as at June 30, 2026, and the consolidated and parent company's operating results, changes in consolidated
and parent company's shareholders' equity and consolidated and parent company's cash flows for 2026 H1.
The Group's fiscal year is the Gregorian calendar year, i.e. from January 1 to December 31 of each year.
The business cycle is the period from the time an enterprise purchases an asset for processing to the realization
of cash or cash equivalents. The Company's business cycle is 12 months.
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate, and the Company and its domestic subsidiaries use RMB as the base accounting currency. The overseas
subsidiaries of the Company determine RMB as their base accounting currency according to the currency of the main
economic environment in which they operate. The currency used by the Company in the preparation of this financial
report is RMB.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Applicable □Not applicable
Rewards for the key management personnel Items Material criteria
Receivables for a significant single provision for bad The proportion of individual item exceeds 0.5% of total
debts assets
Important accounts receivable for the recovery or reversal The proportion of individual item exceeds 0.5% of total
of bad debt reserves assets
The proportion of individual item exceeds 0.5% of total
Significant prepayments that are more than 1 year old
assets
The balance of a single construction in progress accounts
for over 10% of the total balance of construction in
Significant construction in progress project
progress and the amount is more than RMB
Important accounts payable, advances from customers,
The proportion of individual item exceeds 0.5% of total
contract liabilities and other payables with aging over 1
assets
year
Cash received related to other investment activities Amount exceeding RMB 50 million yuan
Payments of cash in connection with significant
Amount exceeding RMB 50 million yuan
investment activities
More than 10% of total assets, or total revenues or total
Significant non-wholly owned subsidiary
profits
Significant joint ventures or associates Net assets account for more than 5%
under common control
Business combinations are divided into business combinations under common control and business combinations
under non-common control.
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties before
and after the merger, and the control is not temporary, therefore it is a business combination under the common
control.
The assets and liabilities obtained in the business combination are measured at their book value as recorded in
the consolidated financial statements of the ultimate controller on the combination date. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger consideration paid
is adjusted for the equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to
be offset. Direct carrying value on the consolidated party at the date of consolidation. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger consideration paid
is adjusted for the equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to
be offset.
Direct expenses incurred in connection with the business combination are recognized in profit or loss for the
period when incurred.
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The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties before
and after the merger, therefore it is a business combination under non-common control.
Consolidation cost is the fair value of assets paid, liabilities incurred or assumed and equity instruments issued to
gain control of the acquired party by the purchaser. Intermediary fees such as auditing, legal services, valuation
consulting and other related management expenses incurred by the purchaser for the business combination are
recognized in the profit or loss of the period when incurred.
Any identifiable assets, liabilities, and contingent liabilities of the acquiree that meet the recognition criteria and
are obtained by the acquirer in the combination are measured at fair value on the acquisition date.
If the combination cost exceeds the acquiree's fair value share of net identifiable assets obtained, this difference is
recognized as goodwill and initially measured at cost. If the cost of the merger is less than the fair value share of the
acquiree's identifiable net assets acquired in the merger, the fair value of the acquired acquiree's identifiable assets,
liabilities and contingent liabilities and the measurement of the cost of the merger are first reviewed, and if the
consolidated cost after review is still less than the fair value share of the acquiree's identifiable net assets share
acquired in the merger, which shall be included in profit or loss for the period occurred.
Goodwill resulting from business combinations is presented separately in the consolidated financial statement and
measured at cost less accumulated impairment provisions.
statements
Control means that the investor has the power over the investee, enjoys variable returns by participating in the
related activities of the investee, and has the ability to influence the amount of returns by using the power over the
investee. The Group will reassess the relevant elements involved in the above definition of controls as a result of
changes in the relevant facts and circumstances.
The consolidated scope of the consolidated financial statement is determined on a control basis.
The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates when the
Group loses control of the subsidiary.
For subsidiaries disposed of by the Group, the results of operations and cash flows prior to the date of disposal
(the date of loss of control) have been duly included in the consolidated statement of income and the consolidated
statement of cash flows.
For subsidiaries acquired through a business combination under non-common control, the results of operations
and cash flows from the date of purchase (the date of acquisition of control) have been appropriately included in the
consolidated statement of income and the consolidated statement of cash flows.
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For subsidiaries acquired through a business combination under common control, regardless of when the
business combination takes place in any point of the reporting period, the subsidiary shall be deemed to be included in
the scope of the Group's consolidation on the date on which the subsidiary is under the control of the ultimate
controlling party, the results of operations and cash flows from the beginning of the earliest period of the reporting
period are duly included in the consolidated income statement and the consolidated statement of cash flows.
The principal accounting policies and the accounting periods adopted by the subsidiaries are determined in
accordance with the accounting policies and accounting periods uniformly prescribed by the Company.
Any effects on the consolidated financial statements from intercompany transactions between the Company and
its subsidiaries, or among the subsidiaries themselves, are eliminated upon consolidation.
The share of owners' equity of a subsidiary not attributable to the parent company is presented as minority equity
and listed as "minority equity" under the owners' equity item in the consolidated balance sheet. The shares of the
subsidiary's net profit or loss for the period that belongs to minority interests is shown under the item "minority profit
and loss" under the net profit item in the consolidated statement of income.
The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share of ownership
interest enjoyed in the beginning of the period, and its balance is still offset by the minority shareholders’ equity.
For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investment without
losing control of the subsidiary, it’s accounted as equity transactions, and the carrying amount of the owner's interest
and minority interest attributable to the parent company is adjusted to reflect their change in the relevant interest in the
subsidiary. The difference between the adjustment of minority interests and the fair value of the consideration
paid/received is adjusted to the capital reserve, and if the capital reserve is insufficient to offset it, then it’s adjusted to
the retained earnings. 8. Joint venture arrangement
Joint venture arrangements are classified as either joint operations or joint ventures, based on the rights and
obligations of the parties—determined by factors such as the arrangement's structure, legal form, and contractual
terms. A joint operation is a joint arrangement in which the parties have rights to the related assets and obligations for
the related liabilities. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy the
assets related to the arrangement and bear the liabilities related to the arrangement. The jointly-operated is a joint
arrangement in which the joint venture party has rights only to the net assets of the joint arrangement.
The Group's investments in joint ventures are accounted for under the equity method. For details, please refer to
"17 Long-term equity investment".
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer to
investments held by the Group for a short period (generally within three months from the date of purchase), highly
liquid, easily convertible into a known amount of cash, and with little risk of change in value.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate on the
date of the transaction, and the exchange rate similar to the spot rate on the date of the transaction is determined in a
systematic and reasonable manner.
At each balance sheet date, foreign currency monetary items are translated into RMB at the spot rate on that date.
Any exchange differences arising from changes in the spot exchange rate (compared to the rate at initial recognition or
the previous balance sheet date) are recognized in current profit or loss, except for: (1) exchange differences on
foreign-currency-specific borrowings that qualify for capitalization, which are capitalized as part of the cost of the
related asset during the capitalization period; (2) The exchange difference of hedging instruments for hedging in order
to avoid foreign exchange risk is treated according to the hedge accounting method; The exchange difference results
from changes in other carrying balances other than amortized cost for monetary items classified as measured at fair
value and changes in which are included in other comprehensive income, it shall be recognized as profit or loss for the
period.
Where the preparation of the consolidated financial statement involves overseas operations, if there are foreign
currency monetary items that substantially constitute net investment in overseas operations, the exchange difference
arising from exchange rate changes is included in the "foreign currency statement translation difference" item; included
in other comprehensive income When disposing of overseas operations, it is included in the profit or loss of the period
of disposal.
Foreign currency non-monetary items measured at historical cost are still measured at the base currency amount
translated at the spot exchange rate on the date of the transaction. For foreign currency non-monetary items measured
at fair value, the spot exchange rate on the date the fair value is determined is used for translation. Any difference
between the translated amount in recording currency and the original currency is treated as a fair value change
(including fluctuation in exchange rate) and is recognized in current profit or loss or other comprehensive income, as
appropriate.
For the purpose of preparing consolidated financial statement, foreign currency financial statements for overseas
operations are converted into RMB statements in the following manner: all assets and liabilities in the balance sheet
are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are converted at the
spot exchange rate at the time of incurrence; All items in the income statement and items reflecting the amount of
profit distribution are converted at an exchange rate similar to the spot exchange rate on the date of the transaction;
The difference between the converted asset items and the total of liability items and shareholders' equity items is
recognized as other comprehensive income and included in shareholders' equity.
Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates similar
to the spot exchange rate on the occurrence date of cash flow, and the impact amount of exchange rate changes on
cash and cash equivalents is used as a reconciliation item and is shown separately in the statement of cash flows as
"Impact of exchange rate changes on cash and cash equivalents" separately.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts converted
from the prior-year financial statement.
Where the Group losses control of overseas operations due to disposing of all the ownership interests in overseas
operations or the disposal of part of the equity investment or other reasons, the difference in the translation of the
foreign currency statements in the ownership interests attributable to the parent company related to the overseas
operations shown below the items of shareholders' equity in the balance sheet shall be transferred to the profit or loss
of the period of disposal.
Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of the
equity investment or other reasons without lost the control of the overseas operations, the difference in the translation
of foreign currency statements related to the disposal part of the overseas operations shall be attributed to the minority
shareholders' interests and shall not be transferred to the profit or loss of the period. When disposing of a portion of
equity in an overseas operation that is classified as an associate or a joint venture, the differences on translation of
foreign currency statements related to that operation are transferred to profit or loss in the disposal period, in
proportion to the percentage of equity disposed.
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument
contract.
In the case of the purchase or sale of financial assets in the usual manner, it shall recognize the assets to be
received and the liabilities to be incurred on the transaction date, or derecognize the assets sold on the transaction
date.
Financial assets and financial liabilities are measured at fair value at initial recognition (for the determination
method of the fair value of financial assets and financial liabilities, please refer to the relevant disclosure in "IV. Basis
of preparation of financial statements" in this chapter). For financial assets and financial liabilities measured at fair
value and changes in which are recorded in profit or loss for the period, the related transaction costs are recognized
directly in profit or loss for the period; For other categories of financial assets and financial liabilities, the related
transaction costs are included in the initial recognition amount. When the Group initially recognizes accounts
receivable that do not include a significant financing component, or when the financing component of a contract not
exceeding one year is disregarded under Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue
Standard"), such receivables are initially measured at the transaction price as defined in the Revenue Standard.
The effective interest rate method refers to the method of calculating the amortized cost of financial assets or
financial liabilities and apportioning interest income or interest expense into each accounting period.
The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial asset
or financial liability over the expected life of the financial asset to the carrying balance of the financial asset or the
amortized cost of the financial liability. In determining the effective interest rate, the expected cash flow is estimated
taking into account all contractual terms of the financial asset or financial liability (such as early repayment, rollover,
call option or other similar option, etc.), without taking into account the expected credit loss.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
The amortized cost of a financial asset or financial liability is the amount initially recognized less the principal
repaid, plus or minus the accumulated amortization resulting from the amortization of the difference between the initial
recognition amount and the amount due date using the effective interest rate method, and then deduct the
accumulated provision for losses (for financial assets only).
After initial recognition, the Group conducts subsequent measurements of different classes of financial assets at
amortized cost, measured at fair value and changes in which are recognized in other comprehensive income, or
measured at fair value and changes in which are recorded in profit or loss for the period.
The contractual clauses of a financial asset provide that the cash flows generated on a given date are only the
payment of principal and interest based on the outstanding principal amount, and the Group's business model is aimed
for managing the financial asset is to collect contractual cash flows, then the Group classifies the financial asset as a
financial asset measured at amortized cost. Such financial assets mainly include monetary funds, notes receivable,
accounts receivable and other receivables.
If the contractual terms of a financial asset stipulate that, on specified dates, cash flows comprise solely payments
of principal and interest on the outstanding principal, and the Group's business model for managing the financial asset
is both to collect contractual cash flows and to sell the financial asset, then the Group classifies this asset as measured
at fair value through other comprehensive income. Such financial assets with a maturity of more than one year from
the date of acquisition are listed as other debt investments, and if they mature within one year (inclusive) from the
balance sheet date, they are shown as non-current assets maturing within one year; Accounts receivable and notes
receivable classified as measured at fair value and changes in which are recognized in other comprehensive income at
the time of acquisition are shown in receivables financing, and the other acquired with a maturity of one year (inclusive)
are shown in other current assets.
At initial recognition, the Group may irrevocably designate investments in non-tradable equity instruments other
than contingent consideration recognized in business combinations that are under non-common control as financial
assets measured at fair value and changes in which are recognized in other comprehensive income on a single
financial asset basis. Such financial assets are listed as investments in other equity instruments.
Where a financial asset meets any of the following conditions, it indicates that the Group's purpose in holding the
financial asset is transactional:
? The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.
? The underlying financial assets were part of a centrally managed portfolio of identifiable financial instruments
at the time of initial recognition and there was objective evidence of an actual pattern of short-term profits in
the recent.
? The financial asset is a derivative, Except for derivatives that meet the definition of financial guarantee
contract and derivatives that are designated as effective hedging instruments.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period include
financial assets classified as measured at fair value and changes in which are recorded in profit or loss for the period
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
and financial assets designated as measured at fair value and changes in which are recorded in profit or loss for the
period:
? Financial assets that do not qualify as financial assets measured at amortized cost and financial assets
measured at fair value and changes in which are included in other comprehensive income are classified as
financial assets measured at fair value and changes in which are recorded in profit or loss for the period.
? At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, the
Group may irrevocably designate financial assets as financial assets measured at fair value and changes in
which are recorded in profit or loss for the period.
Financial assets measured at fair value through profit or loss are presented under "Financial assets held for
trading." Those due in more than one year from the balance sheet date (or with no fixed maturity) and expected to be
held for more than one year are presented under "Other non-current financial assets."
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective
interest rate method, and the gains or losses arising from impairment or derecognition are included in profit or loss for
the period.
The Group recognizes interest income on financial assets measured at amortized cost in accordance with the
effective interest rate method. For financial assets purchased or derived that have incurred credit impairment, the
Group determines interest income based on the amortized cost of the financial asset and the credit-adjusted effective
interest rate from the initial recognition. In addition, the Group determines interest income based on the carrying
balance of financial assets multiplied by the effective interest rate.
Impairment losses or gains and interest income calculated using the effective interest rate method related to
financial assets classified as measured at fair value and changes in which are included in other comprehensive income
are recognized in profit or loss for the period, and except that, changes in the fair value of such financial assets are
recognized in other comprehensive income. The amount of the financial asset recognized in profit or loss for each
period is equal to the amount that is recognized in profit or loss for each period as if it had been measured at
amortized cost. When the financial asset is derecognized, the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income and recognized in profit or loss for the period.
Changes in fair value in investments in non-traded equity instruments designated as measured at fair value and
the change in which are recognized in other comprehensive income are recognized in other comprehensive income,
and when the financial asset is derecognized, the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income to retained earnings. During the period during
which the Group holds the investment in the non-tradable equity instrument, the dividend income is recognized and
recorded in profit or loss for the period when the Group's right to receive dividends has been established, the economic
benefits associated with the dividends are likely to flow into the Group and the amount of the dividends can be reliably
measured.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period are
subsequently measured at fair value, and gains or losses resulting from changes in fair value and dividends and
interest income related to the financial asset are recorded in profit or loss for the period. 11.2 Impairment of Financial
Instruments
The Group recognizes impairment allowances and provision for losses based on expected credit losses for
financial assets measured at amortized cost, financial assets classified as fair value through other comprehensive
income, and lease receivables.
The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of notes
receivable and accounts receivable formed by transactions regulated by revenue standards that do not contain a
material financing element or do not take into account the financing component of contracts not exceeding one year,
as well as operating leases receivable arising from transactions regulated by No. 21Accounting Standard for Business
Enterprises -Leases.
For other financial instruments, except for those purchased or originated with credit loss, the Group evaluates
changes in credit risk since initial recognition at each balance sheet date. If the credit risk of the Financial Instrument
has increased significantly since the initial recognition, the Group measures its loss provision by an amount equivalent
to the expected credit loss over the life of the financial instrument; If the credit risk of the financial instrument does not
increase significantly since the initial recognition, the Group measures its loss provision by an amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. Increases or reversals of credit loss provisions
are recognized as impairment losses or gains in profit or loss for the period, except for financial assets classified as
measured at fair value and changes in which are recognized in other comprehensive income. For financial assets
classified as measured at fair value and the change thereof is recorded in other comprehensive income, the Group
recognizes a credit loss provision in other comprehensive income and includes impairment losses or gains in profit or
loss for the period without reducing the carrying amount of the financial asset as shown in the balance sheet.
Where the Group has measured a loss provision in the preceding accounting period by an amount equivalent to
the expected credit loss over the life of the financial instrument, but the financial instrument is no longer subject to a
significant increase in credit risk since the initial recognition at the period balance sheet date, the Group measures the
loss provision for the financial instrument at the period balance sheet date by an amount equivalent to the expected
credit loss in the next 12 months, and the resulting reversal amount for loss provision is recognized as an impairment
gain in profit or loss for the period.
Using reasonably and evidence-based forward-looking information available, the Group compares the risk of
default on financial instruments at the balance sheet date with the risk of default on the initial recognition date to
determine whether the credit risk of financial instruments has increased significantly since initial recognition.
In assessing whether credit risk has increased significantly, the Group will consider the following factors:
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(1) whether the internal price indicators have changed significantly due to changes in credit risk.
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.,
stricter contractual terms, additional collateral or higher yields) if the existing financial instrument is derived or issued
as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the same
financial instrument or similar financial instruments with the same estimated duration. These indicators include: credit
spreads, credit default swap prices for borrowers, the length and extent to which the fair value of financial assets is
less than their amortized cost, and other market information relevant to borrowers (such as changes in the price of
borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument in fact or
expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) Whether there has been an adverse change in the debtor's business, financial, or economic conditions that is
expected to significantly affect the debtor's ability to meet its debt obligations.
(7) Whether the debtor's operating performance, whether actual or expected, has changed significantly.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) whether there has been a significant adverse change in the regulatory, economic or technical environment in
which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debt or in
the quality of the guarantee or credit enhancement provided by a third party. These changes are expected to reduce
the economic incentive for the debtor to repay the loan within the term specified in the contract or affect the probability
of default.
(11) whether there has been a significant change in the economic incentive expected to reduce the borrower's
repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract, including the waiver or amendment
of contractual obligations that may result from the anticipated breach of the contract, the granting of interest-free
periods, interest rate jumps, requests for additional collateral or guarantees, or other changes to the contractual
framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repayment behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
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Regardless of whether the credit risk has increased significantly after the above assessment, when the payment
of a financial instrument contract has been overdue for more than (inclusive) 30 days, it indicates that the credit risk of
the financial instrument has increased significantly.
At the balance sheet date, if the Group determines that a financial instrument has only a low credit risk, the Group
assumes that the credit risk of the financial instrument has not increased significantly since its initial recognition. A
financial instrument is considered to have a low credit risk if it has a low risk of default, the borrower's ability to meet its
contractual cash flow obligations in the short term is strong, and even if there are adverse changes in the economic
situation and operating environment over a longer period of time that do not necessarily reduce the borrower's
performance of its contractual cash obligations.
Where one or more events occur in which the Group expects to adversely affect the future cash flows of a
financial asset, the financial asset becomes a financial asset that has experienced credit impairment. Evidence that
credit impairment of financial assets has occurred includes the following observable information:
(1) significant financial difficulties of the issuer or debtor;
(2) Breach of contract by the debtor, such as default or delay in payment of interest or principal;
(3) The creditor gives the debtor concessions under economic or contractual considerations relating to the
debtor's financial difficulties that would not have been made under any other circumstances;
(4) The debtor is likely to go bankrupt or undergo other financial restructuring;
(5) The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
(6) Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has
occurred.
Based on the Group's internal credit risk management, if internal recommendations or externally obtained
information indicates that the debtor of a financial instrument cannot fully repay all creditors, including the Group
(regardless of any guarantee obtained by the Group), the Group considers this a default event.
Notwithstanding the above assessment, if a contract payment for a financial instrument is overdue for more than
Credit Loss
other receivables to determine credit losses on relevant financial instruments.
The Group classifies financial instruments into different groups based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument, credit risk rating, type of
collateral, date of initial recognition, industry in which the debtor is in, value of collateral relative to financial assets, etc.
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For financial assets and lease receivables, the expected credit loss is the present value of the difference between the
contractual cash flows due to the Group and the cash flows expected to be collected.
The reflection factors of the Group's methodology for measuring expected credit losses on financial instruments
include: an unbiased probability-weighted average amount determined by evaluating a range of possible outcomes;
the time value of money; reasonable and well-founded information about past events, current conditions, and
projections of future economic conditions that can be obtained at the balance sheet date without unnecessary
additional costs or efforts.
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will be
recovered in whole or in part, the carrying balance of the financial assets will be written down directly. Such write-
downs constitute derecognition of the underlying financial assets.
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to receive
cash flows from the financial asset is terminated; (2) the financial asset has been transferred and substantially all of
the risks and rewards in the ownership of the financial asset have been transferred to the transferring party; (3) the
financial asset has been transferred, and although the Group has neither transferred nor retained substantially all of
the risks and rewards in the ownership of the financial asset, it has not retained control over the financial asset.
Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a financial
asset, and retains control of the financial asset, it will continue to recognize the transferred financial asset to the extent
that it continues to be involved in the transferred financial asset and recognize the relevant liabilities accordingly. The
Group measures the relevant liabilities as follows: The Group measures that liability as follows:
? Where the transferred financial asset is measured at amortized cost, the book value of the related liability
equals the book value of the asset in which the Group continues to be involved minus the amortized cost of
any rights retained by the Group (if the Group retained such rights due to the transfer) and plus the
amortized cost of any obligations assumed by the Group (if the Group assumed such obligations due to the
transfer). Such liabilities are not designated as financial liabilities measured at fair value through profit or loss.
? Where the transferred financial assets are measured at fair value, the carrying amount of the relevant
liabilities is equal to the carrying amount of the financial assets that continue to be involved in the transferred
financial assets less the fair value of the rights retained by the Group (if the Group retains the relevant rights
as a result of the transfer of financial assets) plus the fair value of the obligations assumed by the Group (if
the Group has assumed such obligations as a result of the transfer of financial assets), the fair value of such
rights and obligations is the fair value when measured on an independent basis.
If the overall transfer of financial assets satisfies the conditions for derecognition, the difference between the
carrying amount of the transferred financial assets at the derecognition date and the consideration received as a result
of the transfer of the financial and the sum of the amount corresponding to the derecognition portion of the
accumulated fair value change originally included in other comprehensive income is included in profit or loss for the
period. If the Group transfers financial assets that are investments in non-traded equity instruments designated as
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measured at fair value and changes in which are recognized in other comprehensive income, the accrued gains or
losses previously recognized in other comprehensive income are transferred from other comprehensive income and
recorded in retained earnings.
If a partial transfer of financial assets satisfies the conditions for derecognition, the carrying amount of the financial
assets as a whole before the transfer is apportioned between the derecognized portion and the continuing recognition
portion at the respective relative fair value on the transfer date, and the difference between the sum of the amount of
the consideration received in the derecognized portion and the amount corresponding to the derecognized portion of
the accumulated fair value change originally included in other comprehensive income and the carrying amount of the
derecognized portion at the derecognition date is included in profit or loss for the current period. If the Group transfers
financial assets that are investments in non-traded equity instruments designated as measured at fair value and
changes in which are recognized in other comprehensive income, the accrued gains or losses previously recognized in
other comprehensive income are transferred from other comprehensive income and recorded in retained earnings.
If the conditions for derecognition are not met for the overall transfer of financial assets, the Group continues to
recognize the transferred financial assets as a whole and recognizes the consideration received as a liability.
The Group classifies the financial instruments or their components as financial liabilities or equity instruments at
initial recognition according to the contract terms of the financial instruments issued and their economic essence, not
just in legal form, combined with the definitions of financial liabilities and equity instruments.
Upon initial recognition, financial liabilities are classified as financial liabilities measured at fair value through profit
or loss or other financial liabilities.
Financial liabilities measured at fair value and whose changes are included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated
as measured at fair value and whose changes are included in current profits and losses. Except for derivative financial
liabilities which are listed separately, financial liabilities measured at fair value and whose changes are included in
current profits and losses are listed as transactional financial liabilities.
Financial liabilities that meet one of the following conditions, indicate that the purpose of the Group's financial
liabilities is transactional:
? The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.
? The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralized
management at the initial recognition, and there is objective evidence to show the actual short-term profit
model in the near future.
? Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial
guarantee contract and derivatives that are designated as effective hedging instruments.
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The Group can designate financial liabilities that meet one of the following conditions as financial liabilities
measured at fair value and whose changes are included in current profits and losses at initial recognition: (1) The
designation can eliminate or significantly reduce accounting mismatch; (2) According to the risk management or
investment strategy stated in the formal written documents of the Group, the financial liability portfolio or the portfolio of
financial assets and financial liabilities are managed and evaluated on the basis of fair value, and reported to key
management personnel within the Group on this basis; (3) Qualified mixed contracts containing embedded derivatives.
Transactional financial liabilities are subsequently measured at fair value, and gains or losses caused by changes
in fair value and dividends or interest expenses related to these financial liabilities are included in current profits and
losses.
For financial liabilities designated as being measured at fair value and whose changes are included in the current
profits and losses, the changes in fair value of the financial liabilities caused by changes in the Group's own credit risk
are included in other comprehensive income, and other changes in fair value are included in the current profits and
losses. When the financial liabilities are derecognized, the accumulated change of its fair value caused by the change
of their own credit risk previously included in other comprehensive income is carried forward to retained income.
Dividends or interest expenses related to these financial liabilities are included in the current profits and losses. If
treating the effect of changes in the liability's own credit risk in this manner creates or enlarges an accounting
mismatch in profit or loss, the Group recognizes all gains or losses on the liability (including those related to changes
in its own credit risk) in profit or loss.
Other financial liabilities, except those caused by the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets, are classified as financial liabilities
measured in amortized cost and subsequently measured in amortized cost. The gains or losses arising from
derecognition or amortization are included in the current profits and losses.
If the modification or renegotiation of the contract between the Group and the counterparty does not result in the
termination of the recognition of the financial liabilities that are subsequently measured according to amortized cost,
but the cash flow of the contract changes, the Group recalculates the book value of the financial liabilities and records
the relevant gains or losses into the current profits and losses. The recalculated book value of such financial liabilities
is determined by the Group according to the present value of discounted contract cash flow that will be renegotiated or
modified according to the original actual interest rate of the financial liabilities. For all costs or expenses arising from
the modification or renegotiation of the contract, the Group adjusts the book value of the modified financial liabilities
and amortizes them within the remaining term of the modified financial liabilities.
If all or part of the current obligations of financial liabilities have been discharged, the recognition of financial
liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign an agreement to
replace the original financial liabilities by undertaking new financial liabilities, and the contract terms of the new
financial liabilities are substantially different from those of the original financial liabilities, the Group will derecognize the
original financial liabilities and recognize the new financial liabilities at the same time.
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If all or part of the financial liabilities are derecognized, the difference between the book value of the derecognized
part and the consideration paid (including the transferred non-cash assets or the new financial liabilities undertaken)
will be included in the current profits and losses.
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after deducting
all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by the Group
are treated as changes in equity. The Group does not recognize changes in the fair value of equity instruments.
Transaction costs related to equity transactions are deducted from equity.
The distribution of equity instrument holders by the Group is treated as profit distribution, and the stock dividends
paid do not affect the total shareholders' equity.
Derivatives, including forward foreign exchange contracts, are initially measured at fair value on the contract date
and subsequently measured at fair value.
When the Group has the legal right to offset the recognized financial assets and financial liabilities, and this legal
right is currently enforceable, and the Group plans to settle the financial assets on a net basis or realize the financial
assets and pay off the financial liabilities at the same time, the financial assets and financial liabilities are listed in the
balance sheet at the amount after offsetting each other. Otherwise, financial assets and financial liabilities are
presented separately in the balance sheet without offset.
For notes receivable with significantly increased credit risk, such as those past due and not accepted or where
there is clear evidence that the acceptor is likely unable to fulfill its acceptance obligation, the Group evaluates credit
losses on an individual basis. Other notes receivable are evaluated based on their credit risk characteristics as a group.
Any increase or reversal of the provision for expected credit losses on notes receivable is recognized as a credit
loss or gain in profit or loss.
Except for the notes receivable that assess the credit risk individually, the rest of the notes receivable are divided
into different portfolios based on their credit risk characteristics:
Portfolio Category Determining basis
Portfolio 1 Bank acceptance bill
Portfolio 2 Trade acceptance
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The Group uses an impairment matrix to determine the credit losses of accounts receivable on a portfolio basis.
The increase or reversal of the provision for expected credit losses of accounts receivable shall be recognized in profit
or loss for the current period as credit impairment losses or gains.
characteristics of the portfolio.
The Group classifies accounts receivable into portfolio1 based on common risk characteristics. The common
credit risk characteristics adopted by the Group mainly include the credit tenor and operating conditions of the debtor.
The Group uses both the natural aging of accounts receivable and the overdue aging relative to the credit term as
credit risk characteristics, applying an impairment matrix to determine expected credit losses. Aging is calculated from
the date of its initial recognition. If the terms and conditions of the accounts receivable are modified but do not result in
the derecognition of the accounts receivable, the aging shall be calculated consecutively.
The Group individually determines credit losses for accounts receivable where there is evidence of a significant
increase in credit risk.
financing
The Group determines credit losses for receivables financing on an individual-asset basis. The Group recognizes
the provision for credit losses for receivables financing in other comprehensive income and records any credit loss or
gain in profit or loss, without reducing the book value presented in the balance sheet.
The Group evaluates the financing of corresponding receivables based on the acceptance bank credit status of
bank acceptance bills and makes provisions for credit losses.
Determination method and accounting treatment of expected credit losses
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The Group determines the credit losses on other receivables on a portfolio basis. Any increase or reversal of the
provision for expected credit losses on other receivables is recognized as a credit loss or gain in profit or loss.
The Group divides other receivables into different combinations based on common credit risk characteristics.
Common credit risk characteristics used by the Group include initial recognition date, remaining contract term, and
length of overdue period.
Aging is calculated from the date of its initial recognition. If the terms and conditions of other receivables are
modified but do not result in the derecognition of other receivables, the aging shall be calculated consecutively.
Consumables and Packaging
The Group's inventory mainly includes raw materials, products in process, finished products and materials
entrusted for processing. Inventories are initially measured at cost, which includes purchase costs, processing costs,
and other expenditures incurred to bring the inventories to their current location and condition.
When inventories are issued, the actual cost is determined using the weighted average method.
The inventory system is perpetual inventory system.
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-off method.
On the balance sheet date, inventories are measured according to the lower of cost and net realizable value.
When the net realizable value is lower than the cost, the inventory depreciation provision is withdrawn.
Net realizable value refers to the estimated selling price of inventory minus the estimated cost, estimated sales
expenses and related taxes and fees at the time of completion in daily activities. When determining the net realizable
value of inventory, it is based on the conclusive evidence obtained, and the purpose of holding inventory and the
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
influence of events after the balance sheet date are also considered. Inventory depreciation provision is drawn
according to the difference between the cost of a single inventory item and its net realizable value.
After the provisions for the inventory depreciation are made, the factors causing any write-down of inventory value
have disappeared, leading to the net realizable values of inventories higher than its book value, the amount of write-
down shall be resumed and be reversed from the original provision for inventory devaluation with the reversal being
included in current profit or loss.
Generally, provisions for inventory depreciation are made on an item-by-item basis.
Control means that the investor has the power over the investee, enjoys variable returns by participating in the
related activities of the investee, and has the ability to influence the amount of returns by using the power over the
investee. Joint control refers to the common control of an arrangement according to the relevant agreement, and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control rights
before making decisions. Significant influence refers to the power to participate in decision-making on the financial and
operating policies of the investee, but it cannot control or jointly control the formulation of these policies with other
parties. When determining whether the investor can exercise control or significant influence over the investee, the
potential voting rights arising from convertible corporate bonds or exercisable warrants currently held by the investor or
other parties are taken into account.
For the long-term equity investment obtained by business merger under the same control, the initial investment
cost of the long-term equity investment shall be the share of the book value of the owners' equity of the merged party
in the consolidated financial statements of the final controlling party on the merger date. The capital reserve shall be
adjusted for the difference between the initial investment cost of long-term equity investment and the book value of
cash paid, non-cash assets transferred and debts undertaken; If the capital reserve is insufficient to be offset, the
retained income shall be adjusted. If equity securities are issued as the merger consideration, the initial investment
cost of long-term equity investment shall be the share of the book value of the owners' equity of the merged party in
the consolidated financial statements of the final controlling party on the merger date, the share capital shall be the
total face value of issued shares, and the capital reserve shall be adjusted according to the difference between the
initial investment cost of long-term equity investment and the total face value of the issued shares; If the capital
reserve is insufficient to be offset, the retained income shall be adjusted.
For the long-term equity investment obtained from the business merger not under the same control, the initial
investment cost of the long-term equity investment shall be the merger cost on the purchase date.
Intermediary expenses such as audit, legal services, evaluation and consultation and other related management
expenses incurred by the merging party or the purchaser for business merger are included in the current profits and
losses when incurred.
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Long-term equity investment obtained by other means except the long-term equity investment formed by business
merger shall be initially measured at cost. If the additional investment can exert a significant influence or implement
joint control which however does not constitute control on the investee, the long-term equity investment cost is the sum
of the fair value of the original equity investment determined in accordance with the Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments plus the new investment cost.
The company's financial statements use the cost method to calculate the long-term equity investment in
subsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.
Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or recover
investment to adjust the cost of long-term equity investment. The current investment income is recognized according to
the cash dividend or profit declared by the investee.
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method. An
associate is an investee over which the Group has significant influence, and a joint venture is a joint venture
arrangement under which the Group has rights to the net assets of the arrangement.
Under the equity method, if the initial investment cost of the long-term equity investment exceeds the share of the
fair value of the investee's identifiable net assets at the time of investment, the initial investment cost is not adjusted. If
the initial investment cost is less than the fair value share of the identifiable net assets of the investee, the difference
shall be included in the current profits and losses, and the cost of long-term equity investment shall be adjusted.
When accounting by the equity method, the investment income and other comprehensive income are recognized
respectively according to the share of the net profit and loss and other comprehensive income realized by the investee,
and the book value of long-term equity investment is adjusted; The share is calculated according to the profit or cash
dividend declared by the investee, and the book value of long-term equity investment is reduced accordingly; For other
changes in the owners' equity of the investee except the net profit and loss, other comprehensive income and profit
distribution, the book value of the long-term equity investment shall be adjusted and included in the capital reserve.
When recognizing the share of the net profit and loss of the investee, the net profit of the investee shall be adjusted
and recognized based on the fair value of the identifiable assets of the investee at the time of investment. If the
accounting policies and accounting periods adopted by the investee are inconsistent with those of the Company, the
financial statements of the investee shall be adjusted according to the accounting policies and accounting periods of
the Company, so as to recognize the investment income and other comprehensive income. For the transactions
between the Group and the associated enterprises and joint ventures, if the assets invested or sold do not constitute
business, the unrealized internal transaction gains and losses shall be offset by the portion belonging to the Group
according to the proportion enjoyed, and the investment gains and losses shall be recognized on this basis. However,
the unrealized internal transaction losses between the Group and the investee belong to the impairment losses of the
transferred assets and shall not be offset.
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When recognizing the share of the net loss of the investee, the book value of the long-term equity investment and
other long-term rights and interests that substantially constitute the net investment of the investee shall be written
down to zero. In addition, if the Group is obligated to bear additional losses to the investee, the estimated liabilities will
be recognized according to the expected obligations and included in the current investment losses. If the investee
realizes the net profit in the future, the Group will resume the recognition of the income share after the income share
makes up for the unrecognized loss share.
When disposing of long-term equity investment, the difference between its book value and the actual purchase
price is included in the current profits and losses. If a long-term equity investment has been accounted for using the
equity method and the remaining equity after disposal is still accounted for using the equity method, any other
comprehensive income previously recognized under the equity method is treated on the same basis as if the investee
had directly disposed of the related assets or liabilities, and is transferred proportionately. Owners' equity recognized
by changes in other owners' equity of the investee except net profit and loss, other comprehensive income and profit
distribution shall be carried forward to current profits and losses in proportion. If a long-term equity investment is
accounted for using the cost method and the remaining equity after disposal continues to be accounted for using the
cost method, any other comprehensive income recognized before the Group gained control, under either the equity
method or the accounting standards for recognizing and measuring financial instruments, is treated on the same basis
as if the investee had directly disposed of the related assets or liabilities, and is transferred proportionately. Other
changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution in net asset
of the investee accounted for and recognized by using the equity method shall be carried forward to the current profit
or loss.
Where the Group loses the control over the investee due to the disposal of part of the equity investments, when it
prepares separate financial statements, the remaining equity after disposal that can commonly control or have
significant influence on the investee will be measured under the equity method, and the remaining equity shall be
deemed to have been adjusted under the equity method on acquisition. If the remaining equity after disposal cannot be
jointly controlled or exert significant influence on the investee, it shall be accounted for according to the relevant
provisions of the standards for the recognition and measurement of financial instruments, and the difference between
its fair value and book value on the date of control loss shall be included in the current profits and losses. For other
comprehensive income recognized by the Group before it gains control of the investee, when it loses control of the
investee, it shall be treated on the same basis as the direct disposal of related assets or liabilities by the investee.
Changes in owners' equity in the net assets of the investee, except net profit and loss, other comprehensive income
and profit distribution, shall be carried forward to current profits and losses when it loses control of the investee. If the
remaining equity after disposal is accounted by the equity method, other comprehensive income and other owners'
equity will be carried forward in proportion; If the remaining equity after disposal is changed to accounting treatment
according to the recognition and measurement standards of financial instruments, all other comprehensive income and
other owners' equity will be carried forward.
If the Group loses joint control or significant influence on the investee due to the disposal of some equity
investments, the remaining equity after disposal shall be accounted for according to the recognition and measurement
standards of financial instruments, and the difference between its fair value and book value on the date of joint control
loss or significant influence shall be included in the current profits and losses. Other comprehensive income
recognized by the original equity investment due to accounting by the equity method shall be accounted for on the
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same basis as the direct disposal of relevant assets or liabilities by the investee when the equity method is terminated.
All the owners' equity recognized by the investee due to changes in other owners' equity except net profit and loss,
other comprehensive income and profit distribution shall be carried forward to the current investment income when the
equity method is terminated.
The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions until it
loses control. If the above transactions belong to a package transaction, each transaction will be treated as a
transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control, the
difference between the price of each disposal and the book value of the long-term equity investment corresponding to
the disposed equity will be recognized as other comprehensive income, and then carried forward to the current profits
and losses when it loses control. Provision for inventory falling price loss is generally made on the basis of a single
inventory item.
Measurement mode of investment properties
Measurement by cost method
Depreciation and amortization methods
Investment real estate refers to real estate held to earn rent or capital appreciation, or both, including rented
houses and buildings.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate are
included in the cost of investment real estate if the economic benefits related to the asset are likely to flow in and the
cost can be measured reliably. Other subsequent expenditures are included in the current profits and losses when
incurred.
The Group uses the cost model for subsequent measurement of investment property and provides for
depreciation on a straight-line basis over its service life. The depreciation method, useful life, estimated residual value,
and annual depreciation rates for each category of investment property are as follows:
Annual
Depreciation life Estimated net
Category Category Depreciation
(year) salvage rate (%)
Rate (%)
Straight-line
House, Building 10-40 0.00-4.00 2.40-10.00
method
When the investment real estate is disposed of, or permanently withdrawn from use, and it is not expected to
obtain economic benefits from its disposal, the recognition of the investment real estate will be terminated.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deducting its book value and related taxes is included in the current profits and losses.
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(1) Recognition conditions
Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management, with a
service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits related to them
are likely to flow into the Group and their costs can be measured reliably. Fixed assets are initially measured at cost.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economic
benefits related to the fixed assets are likely to flow in and the cost can be measured reliably, and the book value of
the replaced part shall be derecognized. Other subsequent expenditures are included in the current profits and losses
when incurred.
(2) Depreciation method
Annual depreciation
Category Category Depreciation life Residual value rate
rate
Houses and
Straight-line method 10-40 0.00%-4.00% 2.40%-10.00%
buildings
Machinery
Straight-line method 10-14 4.00% 6.86%-9.60%
equipment
Transportations Straight-line method 8 4.00% 12.00%
Other equipment Straight-line method 5 4.00% 19.20%
Starting from the month subsequent to the date when the fixed-assets are ready for their intended use,
depreciation is accrued over the service life using the straight-line method. The depreciation method, depreciation life,
estimated residual value rate and annual depreciation rate of various fixed assets are detailed in the table above.
Estimated net residual value refers to the amount obtained by the Group from the disposal of the fixed assets at
present after deducting the estimated disposal expenses, assuming that the estimated service life of the fixed asset
has expired and the fixed asset is in the expected state at the end of its service life.
Other explanations
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through the
use or disposal, the fixed assets is derecognized. The difference between the disposal income from the sale, transfer,
scrapping or damage of fix assets after deducting its book value and related taxes is included in the current profits and
losses.
At least at the end of the year, the Group will review the service life, estimated net salvage and depreciation
method of fixed assets, and if there is any change, it will be treated as a change in accounting estimate. 20.
Construction in progress
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
The construction in progress is measured at actual cost, which includes various project expenditures incurred
during the construction period, capitalized borrowing costs before the project reaches working condition for intended
use, and other related costs. No depreciation is allowed for construction in progress.
When an in-progress construction project reaches its intended usable state, its cost shall be transferred to fixed
assets at the actual cost. If the project has reached its intended usable state but the final accounting settlement has
not yet been completed, it shall initially be recorded as fixed assets at an estimated value; upon completion of the final
accounting settlement, the original estimated value shall be adjusted to reflect the actual cost, but any previously
recognized depreciation shall not be adjusted. The criteria and timing for transferring various types of in-progress
construction projects to fixed assets are as follows:
The time point at which it is
Category The criteria for carrying forward to fixed assets
carried forward to a fixed asset
(1) The main construction works and supporting works
have been completed and accepted; (2) Where the
construction works have reached the intended usable
Houses and condition but the final account settlement has not yet been Reach the predetermined usable
buildings processed, the assets shall be recognized as fixed assets condition
at their estimated value, based on the actual construction
cost, starting from the date the works reached the
intended usable condition.
The equipment has been accepted by asset management
personnel and user personnel and meets one or more of
the following conditions according to the actual situation:
Installation of (1) Relevant equipment and other supporting facilities
It has reached the intended usable
machines and have been installed;
state
equipment (2) The equipment can maintain normal and stable
operation for a period of time after debugging; (3) The
production equipment can stably produce qualified
products for a period of time.
Borrowing costs that can be directly attributed to the purchase, construction or production of assets that meet the
capitalization conditions will be capitalized when the asset expenditure has occurred, the borrowing costs have
occurred, and the necessary purchase, construction or production activities to make the assets reach the
predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet the
capitalization conditions purchased, constructed or produced reach the predetermined serviceable state or saleable
state. The remaining borrowing costs are recognized as expenses in the current period.
For specialized borrowings, the capitalization amount is based on the actual interest expenses incurred in the
current period, after deducting the interest income earned from unused borrowing funds deposited in the bank or
investment income earned from temporary investments; General borrowings shall be determined by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special
borrowings by the capitalization rate of used general borrowings, and on this basis, the capitalization amount is
determined. The capitalization rate is calculated and recognized as per the weighted average interest rate of general
borrowing.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Intangible assets include land use rights, software and patent rights.
Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized by
straight-line method in equal installments within their expected service life from the time they are available for use.
Intangible assets with uncertain service life shall not be amortized. The amortization method, service life and estimated
net salvage of various intangible assets are as follows:
Estimated net salvage
Category Amortization method Service life (year)
rate (%)
Land use right Straight-line method 0.00
service life)
Software Straight-line method 0.00
is expected to bring economic benefits to the company)
Patent right Straight-line method that is expected to bring economic benefits to the 0.00
company)
At the end of the period, the service life and amortization method of intangible assets with limited service life shall
be reviewed and adjusted if necessary.
Expenditure in the research stage is included in the current profits and losses when incurred.
Expenditures in the development stage are recognized as intangible assets if they meet the following conditions at
the same time. Expenditures in the development stage that cannot meet the following conditions are included in the
current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, which can prove their usefulness;
(4) Having sufficient technical, financial and other resources to support the development of the intangible assets,
and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure, all the
R&D expenditures incurred shall be included in the current profits and losses. The cost of the intangible assets formed
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
by internal development activities only includes the total expenditure incurred from the time when the capitalization
conditions are met to the time when the intangible assets reach the intended use. The expenses recognized in profit or
loss before meeting the capitalization conditions during the development for the same intangible asset will not be
adjusted.
The scope of R&D expenditure includes wages, salaries, and welfare expenses of personnel directly engaged in
R&D activities, materials, fuel and power costs directly consumed in R&D activities, and depreciation expenses of
instruments and equipment for R&D activities, etc.
On each balance sheet date, the Group checks whether there is any indication that long-term equity investments,
investment properties measured by the cost model, fixed assets, construction in progress, right-of-use assets and
intangible assets with a definite service life may have impairment. If these assets show signs of impairment, the
recoverable amount is estimated. Intangible assets with uncertain service life and intangible assets that have not yet
reached the serviceable state are tested for impairment every year, regardless of whether with signs of impairment.
Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group is determined based on the asset
group to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the asset
or asset group minus the disposal expenses or the present value of its expected future cash flow.
If the recoverable amount of an asset is lower than its book value, the asset impairment provision shall be accrued
according to the difference and included in the current profits and losses.
Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of goodwill,
it shall be conducted in combination with the related asset group or asset group portfolio. That is, from the purchase
date, the book value of goodwill is allocated to the asset group or asset group portfolio that can benefit from the
synergistic effect of business merger in a reasonable way. If the recoverable amount of the asset group or asset group
portfolio containing the allocated goodwill is lower than its book value, the corresponding impairment loss will be
recognized. The amount of impairment loss will firstly deduct the book value of goodwill allocated to the asset group or
asset group portfolio, and then deduct the book value of other assets according to the proportion of the book value of
assets other than goodwill in the asset group or asset group portfolio.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in future accounting
periods.
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current period
and subsequent periods with an amortization period of more than one year. Long-term deferred expenses shall be
amortized evenly by stages during the expected benefit period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and liabilities under the same contract are listed
on a net basis.
(1) Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Group, the Group recognizes the actual
short-term remuneration as a liability, and records it into the current profits and losses or related asset costs. The
employee welfare expenses incurred by the Group are included in the current profits and losses or related asset costs
according to the actual amount when actually incurred. If employee welfare expenses are non-monetary benefits, they
shall be measured at fair value.
For the medical insurance premiums, work-related injury insurance premiums, maternity insurance premiums and
other social insurance premiums and housing provident funds paid by the Group for employees, as well as the labor
union funds and employee education expenses withdrawn by the Group in accordance with the provisions, the
corresponding employee compensation amount shall be calculated and determined according to the prescribed
accrual basis and accrual ratio during the accounting period when employees provide services for the Group, and the
corresponding liabilities shall be recognized and included in the current profit or loss or related asset costs.
(2) Accounting treatments of post-employment benefits
Post-employment benefits are all defined contribution plans.
During the accounting period when employees provide services for the Group, the amount payable calculated
according to the set deposit plan is recognized as a liability, and included in the current profits and losses or related
asset costs.
(3) Accounting treatments of dismissal benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from the
dismissal benefits shall be recognized at the earlier of the following two dates, and included in the current profits and
losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to terminate labor
relations or the proposal to cut back; When the Group recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
(4) Accounting treatments of other long-term employee benefits
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
When the obligation related to the contingency such as product quality guarantee is a current obligation of the
Group, and the performance of such obligation is likely to result in the outflow of economic benefits, and the amount of
such obligation can be measured reliably, it is recognized as estimated liabilities.
On the balance sheet date, considering the risk, uncertainty and time value of money related to contingencies, the
estimated liabilities are measured according to the best estimate of the expenditure required to fulfill the relevant
current obligations. If the time value of money is significant, the best estimate is determined by the discounted amount
of expected future cash outflow.
The Group has fulfilled its contractual obligation, that is, when the customer obtains the control right of the
relevant goods or services, the income will be recognized according to the transaction price allocated to the
performance obligation. Performance obligation refers to the commitment of the Group to transfer clearly
distinguishable goods or services to customers in the contract. Transaction price refers to the amount of consideration
that the Group is expected to receive due to the transfer of goods or services to customers, which however, does not
include the money received on behalf of third parties and the money that the Group expects to return to customers.
The Group evaluates the contract on the start date of the contract, identifies the individual performance obligations
contained in the contract, and determines whether each individual performance obligation is performed within a certain
period of time or at a certain point of time. If one of the following conditions is met, it belongs to the performance
obligation within a certain period of time, and the Group recognizes the income within a certain period of time
according to the performance progress: (1) The customer obtains and consumes the economic benefits brought by the
performance of the Group; (2) The customer can control the goods under construction during the performance of the
Group; (3) The goods produced during the performance of the Group have irreplaceable uses, and the Group has the
right to receive payment for the performance accumulated to date throughout the contract period. Otherwise, the
Group recognizes the revenue at the point when the customer obtains the right of control of the relevant goods or
services.
For goods sold to customers, the Group recognizes income when the control of the goods is transferred, that is,
when the goods are delivered to the designated place of the other party and signed by the other party. The Group
recognizes income in the process of providing property and leasing services.
Transaction prices refer to the amount of consideration that the Group is expected to be entitled to receive as a
result of the transfer of goods or services to customers, but does not include the amount received on behalf of third
parties and the amount expected to be returned to customers by the Group. In determining the transaction price, the
Group takes into account the impact of factors such as variable consideration, significant financing elements in the
contract, non-cash consideration, consideration payable to customers, etc.
If the contract contains two or more performance obligations, the Group will allocate the transaction price to each
individual performance obligation on the contract start date according to the relative proportion of the separate selling
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
price of the goods or services promised by each individual performance obligation. However, if there is conclusive
evidence that the contract discount or variable consideration is only related to one or more (but not all) performance
obligations in the contract, the Group will allocate the contract discount or variable consideration to one or more related
performance obligations. Separate selling price refers to the price at which the Group sells goods or services to
customers separately. If the separate selling price cannot be directly observed, the Group comprehensively considers
all relevant information that can be reasonably obtained, and estimates the separate selling price by using observable
input values to the maximum extent.
For sales with return clauses, when the customer obtains the control right of the relevant goods, the Group
recognizes the income according to the amount of consideration expected to be charged due to the transfer of goods
to the customer (that is, excluding the amount expected to be refunded due to sales return), and recognizes the
liabilities according to the amount expected to be refunded due to sales return; At the same time, according to the
book value of the expected returned goods at the time of transfer, the balance after deducting the expected cost of
recovering the goods (including the loss of the value of the returned goods) is recognized as an asset, and the net
carry-over cost of the above assets is deducted according to the book value of the transferred goods at the time of
transfer.
For sales with quality assurance clauses, if the quality assurance provides a separate service in addition to
assuring customers that the goods or services sold meet the established standards, the quality assurance constitutes
a single performance obligation. Otherwise, the Group shall handle the quality assurance responsibility in accordance
with the Accounting Standards for Business Enterprises No.13-Contingencies.
According to whether the Group has control over the goods or services before transferring them to customers, the
Group judges whether it is the main responsible person or the agent when engaging in transactions. If the Group can
control the goods or services before transferring them to customers, the Group is the main responsible person, and the
income is recognized according to the total consideration received or receivable; Otherwise, the Group, as an agent,
recognizes income according to the expected amount of commission or handling fee, which is determined according to
the net amount of the total consideration received or receivable after deducting the price payable to other interested
parties.
If the Group receives the payment for the sale of goods or services from customers in advance, it will first
recognize the payment as a liability, and then change it to income when the relevant performance obligations are
fulfilled. When the advance payment of the Group does not need to be returned, and the customer may give up all or
part of its contractual rights, if the Group is expected to be entitled to the amount related to the contractual rights given
up by the customer, the above amount will be recognized as income in proportion according to the mode of the
customer's exercise of contractual rights; Otherwise, the Group will only convert the relevant balance of the above
liabilities into income when it is extremely unlikely that the customer will demand to perform the remaining performance
obligations.
Different revenue recognition methods and measurement methods involved in the use of different business
models for similar business
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from the
government free of charge. Government subsidies are recognized when they can meet the conditions attached to
government subsidies and can be received.
If government subsidies are monetary assets, they shall be measured according to the amount received or
receivable.
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group's
government subsidies, these government subsidies are government subsidies related to assets.
Government subsidies related to assets are recognized as deferred income, and are included in the current profits
and losses in installments according to the straight-line method within the service life of the related assets.
As the Group's government subsidies, such as industry development support funds, enterprise development
support funds and tax subsidies, cannot form long-term assets, these government subsidies are government subsidies
related to income.
Government subsidies related to income, if used to compensate related costs and losses in future periods, will be
recognized as deferred income, and are included in the current profits and losses during the period when related costs
or expenses are recognized; if used to compensate the related costs and losses that have occurred, will be directly
included in the current profits and losses.
Government subsidies related to the daily activities of the Group are included in other income according to the
nature of economic business. Government subsidies unrelated to the daily activities of the Group are included in non-
operating income.
When the confirmed government subsidy needs to be returned, if there is a relevant deferred revenue balance,
the relevant deferred income book balance will be offset, and the excess will be included in the current profits and
losses; If there is no relevant deferred income, it will be directly included in the current profits and losses.
Income tax expenses include current income tax and deferred income tax.
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periods
shall be measured by the expected income tax payable (or refunded) calculated in accordance with the provisions of
the tax law.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
For the difference between the book values of some assets and liabilities and their tax basis, and the temporary
difference between the book values of items that are not recognized as assets and liabilities but can be determined in
tax basis according to the provisions of the tax law and tax basis, the balance sheet liability method is adopted to
recognize deferred income tax assets and deferred income tax liabilities.
In general, all temporary differences are recognized as related deferred income tax. However, for deductible
temporary differences, the Group recognizes related deferred income tax assets to the extent that it is likely to obtain
taxable income to offset the deductible temporary differences. In addition, for the temporary differences related to the
initial recognition of goodwill and the initial recognition of assets or liabilities arising from transactions that are neither
business merger nor affect accounting profits and taxable income (or deductible losses), the relevant deferred income
tax assets or liabilities are not recognized.
For deductible losses and tax deductions that can be carried forward to future years, the corresponding deferred
income tax assets are recognized to the extent that it is likely to obtain future taxable income for deducting deductible
losses and tax deductions.
The Group recognizes deferred income tax liabilities arising from taxable temporary differences related to
investments in subsidiaries, associated enterprises and joint ventures, unless the Group can control the time when the
temporary differences are reversed, and the temporary differences are unlikely to be reversed in the foreseeable future.
For deductible temporary differences related to the investments of subsidiaries, associated enterprises and joint
ventures, the Group recognizes the deferred income tax assets only when the temporary differences are likely to be
reversed in the foreseeable future and the taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be measured
according to the applicable tax rate during the expected recovery of related assets or settlement of related liabilities.
Except that the current income tax and deferred income tax related to transactions and events directly included in
other comprehensive income or shareholders' equity are included in other comprehensive income or shareholders'
equity, and the deferred income tax arising from business merger adjusts the book value of goodwill, the remaining
current income tax and deferred income tax expenses or gains are included in the current profits and losses. On the
balance sheet date, the book value of deferred income tax assets shall be rechecked.
On the balance sheet date, the book value of the deferred tax assets shall be reviewed. If it is likely that sufficient
taxable income will not be available in the future to offset the benefits of the deferred tax assets, the book value of the
deferred tax assets shall be written down. When it is likely to earn sufficient taxable income, the written down amount
is reversed.
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire assets
and pay off liabilities at the same time, the Group's current income tax assets and current income tax liabilities are
presented on an offset net basis.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis, and the
deferred income tax assets and liabilities are related to the income tax levied by the same tax collection department on
the same taxpayer or to different taxpayers, but in the future, the taxpayers involved intend to settle the current income
tax assets and liabilities on a net basis, or acquire assets and pay off liabilities at the same time, the Group's deferred
income tax assets and liabilities are presented on an offset net basis.
If the contract contains one or more leased and non-leased parts at the same time, the Group will split each
separate leased and non-leased part and allocate the contract consideration according to the relative proportion of the
sum of the separate prices of each leased part and the non-leased part.
Except for short-term leases, the Group recognizes the right-to-use assets on the start date of lease term. The
start date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group.
The right-to-use assets is initially measured according to the cost. The cost includes:
? Initial measurement amount of lease liabilities;
? For the lease payment paid on or before the start date of the lease term, if there are lease incentives, deduct
the amount related to the lease incentives enjoyed;
? Initial direct expenses incurred by the Group;
? The estimated costs incurred by the Group for dismantling and removing the leased assets, restoring the
premises where the leased assets are located or restoring the leased assets to the state agreed in the lease
clauses.
The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-Fixed
Assets, and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it has acquired
the ownership of the leased assets at the expiration of the lease term, the right-to-use assets will be depreciated within
the remaining service life of the leased assets. If it cannot be reasonably determined that the ownership of the leased
assets can be obtained at the expiration of the lease term, depreciation shall be accrued during the lease term or the
remaining service life of the leased assets, whichever is shorter.
According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Group
determines whether the right-to-use assets have been impaired, and carries out accounting treatment for the identified
impairment losses.
Except for short-term leases, the Group initially measures the lease liabilities on the start date of lease term
according to the present value of the unpaid lease payment on that date. When calculating the present value of the
lease payment, the Group uses the lease interest rate as the discount rate.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the
leased assets during the lease term, including:
? Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant
amount of lease incentive shall be deducted;
? Variable lease payment amount depending on index or ratio;
? The exercise price of the option reasonably determined by the Group to be exercised;
? The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise the
option;
? The amount expected to be paid according to the residual value of the guarantee provided by the Group.
After the start of the lease term, the Group calculates the interest expense of the lease liabilities in each period of
the lease term at a fixed periodic interest rate, and includes it in the current profits and losses or related asset costs.
After the commencement of the lease term, if the following circumstances occur, the Group will re-measure the
lease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the Group will include the difference in the
current profits and losses:
? If the lease term changes or the evaluation result of the purchase option changes, the Group will re-measure
the lease liabilities according to the present value calculated by the changed lease payment amount and the
revised discount rate;
? If the estimated payable amount according to the guarantee residual value or the index or proportion used to
determine the lease payment changes, the Group will re-measure the lease liabilities according to the
present value calculated by the changed lease payment amount and the original discount rate.
short-term lease
For the short-term lease of some factories and some rented warehouses, the Group chooses not to recognize the
right-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months and does
not include the option to purchase on the start date of the lease term. The Group will charge the lease payment for
short-term lease to the current profits and losses or related asset costs in accordance with the straight-line method in
each period of the lease term.
If the lease changes and the following conditions are met at the same time, the Group will carry out accounting
treatment on the lease change as a separate lease:
? The lease modification expands the scope of the lease by adding one or more right of use of the leased
assets;
? The increased consideration is equivalent to the individual price of the expanded part of the lease scope
adjusted according to the contract situation.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
If the lease modification is not accounted for as a separate lease, on the effective date of the lease modification,
the Group re-apportions the consideration of the modified contract, re-determines the lease term, and re-measures the
lease liabilities at the present value calculated according to the modified lease payments and the revised discount rate.
If the lease scope is reduced or the lease term is shortened due to lease change, the Group shall correspondingly
reduce the book value of the right-to-use assets, and include the related gains or losses of partial or full termination of
lease in the current profits and losses. If other lease changes lead to the re-measurement of lease liabilities, the Group
will adjust the book value of the right-to-use assets accordingly.
If the contract contains both leased and non-leased parts, the Group will allocate the contract consideration
according to the provisions of the Accounting Standards for Business Enterprises Revenues on transaction price
allocation, and the basis of allocation is the separate prices of the leased part and the non-leased part.
A lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets is
a financial lease. Other leases except financing lease are operating leases.
During each period of the lease term, the Group adopts the straight-line method to recognize the lease receipts
from operating lease as rental income. The initial direct expenses incurred by the Group in connection with operating
leases are capitalized when incurred, apportioned on the same basis as rental income recognition during the lease
term, and included in current profits and losses in installments.
The variable lease receipts related to operating leases obtained by the Group, which are not included in the lease
receipts, are included in the current profits and losses when actually incurred.
If the operating lease is changed, the Group will account for it as a new lease from the effective date of the
change, and the advance or receivable lease receipts related to the lease before the change will be regarded as the
receipt amount of the new lease.
(1) Major changes in accounting policies
Applicable Not applicable
Report item name affected by Impact
Content and reasons for changes in accounting policies
significant factors Amount
On June 4, 2026, the Ministry of Finance issued the not applicable 0.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
"Interpretation No.20 of the Accounting Standards for Business
Enterprises" (hereinafter referred to as "Interpretation No.20").
Interpretation No.20 governs the measurement of the cash flow
characteristics of financial asset contracts, as well as the
accounting treatment and related disclosure requirements in
situations where currency non-convertibility exists; it shall
come into force on January 1, 2026. The Group has adopted
these provisions effective from January 1, 2026; the Group
believes that the adoption of these provisions will not have a
material impact on its financial statements.
(2) Major changes in accounting estimates
□Applicable Not applicable
(3) Adjustments of relevant items of financial statements at the beginning of the year in the year of initial
implementation of new accounting standards from 2026
□Applicable Not applicable
VI. Taxation
Tax category Tax basis Tax rate
The output tax for domestic sales is
The balance after deducting the
calculated according to 13%, 9%, 6%
deductible input tax from the output
and 5% of the sales amount
VAT tax; The tax calculation method of
calculated according to relevant tax
"exemption, offset and refund" is
regulations, and the tax rebate rate
applied to sales of export products
for export products is 13%
Urban maintenance and construction
Payable turnover tax 7%
tax
Enterprise Income tax Payable turnover tax 25%、20%、15%、8.25%
Surcharge for education Payable turnover tax 3%
Local education surcharge Payable turnover tax 2%
Residual value or rental income after
Property tax deducting 30% from the original 1.2%
value of property at one time
If there are taxpayers with different corporate income tax rates, please disclose with an explanation
Name of taxpayer Income tax rate
The Board of Directors of Shenzhen Textile (Holdings)
Co., Ltd.
Shenzhen Shenfang Property Management Co., Ltd. 20% (Note 1)
Shenzhen Beauty Century Garment Co., Ltd. 20% (Note 1)
Shenzhen Lisi Industrial Development Co., Ltd. 20% (Note 1)
Shenzhen Shenfang Sungang Property Management
Co., Ltd.
Shengtou (Hongkong) Co., Ltd. 8.25% ( Note 2)
SAPO Photoelectric 15% (Note 3)
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
（1）In 2025, SAPO Photoelectric, a subsidiary of the Company, was jointly recognized as Industry and
Information Technology Bureau of Shenzhen Municipality, Shenzhen Finance Bureau and Shenzhen Tax Service,
State Taxation Administration, respectively, with a certification period of 3 years, and the certificate numbers of
GR202544204289 respectively. It shall apply the preferential tax policies for high-tech enterprises within three years
after it is recognized as a high-tech enterprise, and pay enterprise income tax at the rate of 15% after being filed by the
competent tax bureau.
（2）The Company's subsidiaries, Shenzhen Meibainian Garment Co., Ltd., Shenzhen Lisi Industrial
Development Co., Ltd., Shenzhen Shenfang Sungang Property Management Co., Ltd. and Shenzhen Shenfang
Property Management Co., Ltd. are qualified small low-profit enterprises. According to the Announcement of the
Ministry of Finance and the State Taxation Administration on Further Implementing Preferential Policies for Corporate
Income Tax of Small and Micro Enterprises (No. 13, 2022) and the Announcement of the Ministry of Finance and the
State Taxation Administration on Preferential Policies for Corporate Income Tax of Small and Micro Enterprises and
Individual Industrial and Commercial Households (No. 6, 2023), the part of the annual taxable income not exceeding
RMB 3 million will be included in the taxable income after deducting 25%, and corporate income tax will be paid at a
tax rate of 20%. (3)According to the relevant provisions of the Notice of the Ministry of Finance, the General
Administration of Customs, and the State Taxation Administration on the Import Tax Policies for Supporting the
Development of the New Display Device Industry (CGS
（3）In accordance with the relevant provisions of the Notice of the State Administration of Taxation of the
General Administration of Customs of Ministry of Finance on Import Tax Policies for Supporting the Development of
the New Display Device Industry (No. 19[2021]Cai Guan Shui ), SAPO Photoelectric , a subsidiary of the Company,
meets the relevant conditions and enjoys the policy of exemption from import duties for related products from January
（4）According to the Announcement on the Policy of Additional Value-Added Tax Deduction for Advanced
Manufacturing Enterprises (CZBSWZJGG [2023] No.43) issued by the Ministry of Finance and the State Taxation
Administration in September 2023, from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises
are allowed to deduct the value-added tax payable by 5% of the deductible input tax for the current period. SAPO
Photoelectric, a subsidiary of the Company, meets the relevant conditions and enjoyed the policy of additional
deduction of value-added tax (VAT) in H1, 2026.
Note 1: See "2. Tax preferences" for details.
Note 2: according to the Inland Revenue Ordinance of Hong Kong, SATO (Hong Kong) Limited is subject to a two-
tier profits tax system. The first HKD 2 million of taxable profits shall taxed at a rate of 8.25%, and the profits generated
thereafter shall be taxed at a rate of 16.5%.
Note 3: See "2. Tax preferences" for details.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
VII. Notes to items in consolidated financial statements
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Cash on hand 8,507.96 15,510.21
Bank deposits 502,126,048.66 449,263,543.52
Other monetary funds 15,719,606.07 685,396.65
Deposits with finance companies 0.00 0.00
Tota 517,854,162.69 449,964,450.38
Other explanations
day notice deposits amounting to RMB 239,998.72 (on December 31, 2025: RMB 21,498.92).
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Financial assets measured at fair
value and whose changes are
included in the current profits and
losses
Money funds and wealth
management products
Tota 748,398,696.32 736,341,286.18
(1) Presentation of notes receivable by category
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Bank acceptance 33,936,675.37 85,980,246.52
Tota 33,936,675.37 85,980,246.52
(2) Disclosure by provision method for bad debts
In RMB
Category Ending balance Beginning balance
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Notes
receivable
with
provision for
bad debts on
a
combination
basis
Bank
acceptance 33,936,675.37 100.00% 0.00 0.00% 33,936,675.37 85,980,246.52 100.00% 0.00 0.00% 85,980,246.52
bill
Tota 33,936,675.37 100.00% 0.00 0.00% 33,936,675.37 85,980,246.52 100.00% 0.00 0.00% 85,980,246.52
Name of category of provision for bad debts on a combination basis: banker's acceptance bill
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Bank acceptance bill 33,936,675.37 0.00 0.00%
Tota 33,936,675.37 0.00 0.00%
Explanation on the basis for determining the combination:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit
losses:
□Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:NoneSignificant amounts of recovered or reversed provision for bad
debts for the current period:
□Applicable Not applicable
(4) The Company's pledged notes receivable at the end of the period
At the end of the reporting period, the Group did not hold any 应收 notes pledged as collateral.
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance
sheet date at the end of the period
In RMB
Rewards for the key management
Ending derecognized amount Ending un-derecognized amount
personnel Items
Bank acceptance 0.00 33,936,675.37
Tota 0.00 33,936,675.37
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(6) Actual write-off of notes receivable for the current period
At end of the reporting period, the Group had no actual write-off of notes receivable.
(1) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 833,669,207.72 777,768,360.91
Over 3 years 13,442,336.97 13,513,950.97
Including：3 to 4 years 0.00 0.00
More than 5 years 13,375,086.97 12,899,241.80
Tota 847,557,744.70 791,770,983.21
(2) Disclosure by provision method for bad debts
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Accounts
receivable
with
provision for 32,154,585.32 3.79% 17,130,986.64 53.28% 15,023,598.68 38,464,614.51 4.86% 18,450,283.68 47.97% 20,014,330.83
bad debts on
an individual
basis
Including:
Accounts
receivable
with
provision for
bad debts on
a
combination
basis
Including:
Portfolio 1 804,725,110.85 94.95% 12,157,080.38 1.51% 792,568,030.47 743,510,570.70 93.90% 11,247,868.50 1.51% 732,262,702.20
Portfolio 2 10,678,048.53 1.26% 314,220.97 2.94% 10,363,827.56 9,795,798.00 1.24% 264,881.51 2.70% 9,530,916.49
Tota 847,557,744.70 100.00% 29,602,287.99 817,955,456.71 791,770,983.21 100.00% 29,963,033.69 761,807,949.52
Name of category of provision for bad debts on an individual basis: provision for bad debts on an individual basis
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Beginning balance Ending balance
Name Balance of Bad debt Balance of Bad debt Reasons for
Provision ratio
Book provisions Book provisions provision
Expected
credit losses
Customer 1 20,023,337.51 4,004,667.50 13,872,091.97 2,774,418.39 20.00%
over the next
Expected
credit losses
Customer 2 4,994,576.03 998,915.21 4,907,406.38 981,481.28 20.00%
over the next
Impairment
Customer 3 2,797,016.81 2,797,016.81 2,797,016.81 2,797,016.81 100.00%
loss incurred
Impairment
Customer 4 1,692,206.15 1,692,206.15 1,682,577.66 1,682,577.66 100.00%
loss incurred
Impairment
Customer 5 1,298,965.36 1,298,965.36 1,298,965.36 1,298,965.36 100.00%
loss incurred
Impairment
Others 7,658,512.65 7,658,512.65 7,596,527.14 7,596,527.14 100.00%
loss incurred
Tota 38,464,614.51 18,450,283.68 32,154,585.32 17,130,986.64
Name of category of provision for bad debts on a combination basis: portfolio 1
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
During the credit period 799,020,250.57 11,543,406.07 1.44%
More than 90 days overdue
(with impairment)
Tota 804,725,110.85 12,157,080.38
Explanation on the basis for determining the combination:
Based on the industry nature and credit status of customers, the degree of credit risk varies with the number of
days overdue, so different credit loss rates are adopted for customers with different days overdue.
Name of category of provision for bad debts on a combination basis: portfolio 2
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Within 1 year 10,191,931.71 192,633.64 1.89%
Over 3 years 67,250.00 67,250.00 100.00%
Tota 10,678,048.53 314,220.97
Explanation on the basis for determining the combination:
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Group customers other than SAPO Photoelectric are mainly leasing customers, and the provision for credit
impairment is made according to the aging method combination.
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses:
□Applicable Not applicable
As of June 30,2026, a provision for bad debts was recognized in accordance with the Simplified Expected Credit Loss
Model.
Expected credit loss Total expected credit
over the entire life loss over the entire
bad debt provision cycle (excluding cases life cycle (including total
where credit impairment incurred credit
has not occurred) impairment losses)
Balance as at 1 January
Balance as at 1 January
period
- - Transfer to
- - 0.00
credit- impaired
- - Transfer back to
- - 0.00
non- credit- impaired
Provision for the current
period
Reversal for the current
-16,256,380.83 -16,327,994.83
period -71,614.00
Write- off for the current
- - 0.00
period
Write- down for the
- - 0.00
current period
Other changes - - -
Balance as at 30 June 2026 16,159,951.02 13,442,336.97 29,602,287.99
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Beginning Ending
Category Recovery or
balance Accrual Write-off Others balance
reversal
Bad debt -
provisions 16,327,994.83
Tota 29,963,033.69 15,967,249.13 0.00 0.00 29,602,287.99
Significant amounts of recovered or reversed provision for bad debts for the current period:
In RMB
Basis for determining
Recovered or the ratio of provision
Unit name Reason for reversal Recovery method
reversed amount for bad debts and its
rationality
There was no significant amount of provision for bad debts recovered or reversed during the reporting period.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(4).Actual write-off of accounts receivable for the current period
In RMB
Rewards for the key management personnel Items Amount of write-off
Including write-off of important accounts receivable:
In RMB
Whether the fund
Nature of Write-off
Amount of write- Reasons for is generated by
Unit name accounts procedures
off write-off related party
receivable performed
transactions
Explanation on write-off of accounts receivable:
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
In RMB
Ending balance
Ratio to the total
of provision for
amount of
Ending balances bad debts of
Ending balance Ending balance ending balance
of accounts accounts
Unit name of accounts of contract of accounts
receivable and receivable and
receivable assets receivable and
contract assets provision for
contract assets
impairment of
(%)
contract assets
Customer 1 131,043,895.05 0.00 131,043,895.05 15.46% 1,978,762.82
Customer 2 121,043,891.48 0.00 121,043,891.48 14.28% 1,827,762.76
Customer 3 101,816,999.46 0.00 101,816,999.46 12.01% 1,537,436.69
Customer 4 70,303,881.86 0.00 70,303,881.86 8.29% 1,061,588.62
Customer 5 62,423,965.32 0.00 62,423,965.32 7.37% 942,601.88
Tota 486,632,633.17 0.00 486,632,633.17 57.41% 7,348,152.77
(1) Presentation of receivables financing by category
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Bank acceptance bill 1,507,659.34 22,584,820.72
Tota 1,507,659.34 22,584,820.72
(2) Disclosure by provision method for bad debts
Recognize a bad debt provision using the expected credit loss model:not have
Basis for stage and bad debt provision accrual ratio:not have
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Explanation of the significant change in the carrying amount of receivables financing resulting from
changes in loss provisions for the current period:not have
(3) Provision for bad debts accrued, recovered or reversed for the current period
The Group believes that the bank acceptance bills it holds are issued by banks with high credit ratings and carry
no significant credit risk; therefore, no provision for bad debts has been made.
(4) The Company's pledged receivables financing at the end of the period
None
(5) Receivables financing endorsed or discounted by the Company and not yet due on the
balance sheet date at the end of the period
At end of the reporting period, the Company had no receivables financing with actual write-off.
(7) Increases/decreases and fair value changes of receivables financing for the current period
None
(8) Other explanations
At the end of the reporting period, the Group had no pledged receivables financing.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Interest receivable 0.00 0.00
Dividend receivable 893,982.69 0.00
Other receivable 3,889,594.26 4,324,973.02
Tota 4,783,576.95 4,324,973.02
(1) Interest receivable
None
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
□Applicable Not applicable
None
None
(2) Dividends receivable
In RMB
Project (or investees) Ending balance Beginning balance
Shenzhen South Textile Co., Ltd. 893,982.69 0.00
Tota 893,982.69 0.00
None
None
None
There were no dividends receivable with actual write-off during the reporting period.
(3) Other receivables
In RMB
Payment nature Ending book balance Beginning book balance
Current payment 14,905,827.41 15,455,577.41
Deposit and security deposit 2,560,250.86 2,373,756.82
Export rebate 709,028.48 709,028.48
Reserve funds and employee loans 365,128.97 293,128.97
Others 3,475,620.32 3,534,780.46
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Tota 22,015,856.04 22,366,272.14
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 2,952,099.94 3,292,434.09
Over 3 years 18,439,451.71 18,454,569.46
Including:3 to 4 years 54,985.20 54,985.20
More than 5 years 17,816,790.22 17,831,907.97
Total 22,015,856.04 22,366,272.14
Applicable □Not applicable
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category Book Book
Provision Provision
Amount Proportion Amount balance Amount Proportion Amount balance
ratio ratio
Including:
Account
receivable
withdrawal
bad debt
provision by
portfolio
Including:
Other
receivables
for which
credit loss
provision is
made 22,015,856.04 100.00% 18,126,261.78 82.33% 3,889,594.26 22,366,272.14 100.00% 18,041,299.12 80.66% 4,324,973.02
according to
the
combination
of credit risk
characteristics
Tota 22,015,856.04 100.00% 18,126,261.78 82.33% 3,889,594.26 22,366,272.14 100.00% 18,041,299.12 80.66% 4,324,973.02
Name of category of provision for bad debts on a portfolio basis: Other receivables with provision for bad debts on a
portfolio basis by credit risk characteristics
In RMB
Name Ending balance
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Balance of Book Bad debt provisions Provision ratio
Provision for bad debts
based on credit risk
characteristic combination 22,015,856.04 18,126,261.78 82.33%
Provision for other
receivables
Total 22,015,856.04 18,126,261.78
Explanation on the basis for determining the combination:
The Group divides other receivables into different combinations based on common credit risk characteristics.
Common credit risk characteristics used by the Group include initial recognition date, remaining contract term, and
length of overdue period.
The provision for bad debts made according to the general model of expected credit losses
In RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Bad debt provisions Expected credit Tota
throughout the throughout the
losses over the next
duration (without duration (with credit
credit loss) impairment)
Balance as of
January 1, 2026
Balance as at
January 1, 2026
forwarded to the
current period
- Transfer to phase II -18,371.89 18,371.89 0.00 0.00
-Transfer to phase III 0.00 0.00 0.00 0.00
- Reversal to phase II 0.00 0.00 0.00 0.00
- Reversal to phase I 0.00 0.00 0.00 0.00
Provision for the
current period
Reversal in this
-97,510.66 0.00 -8,221.75 -105,732.41
period
Charge-off in the
current period
Write-off in the
current period
Other change 0.00 0.00 0.00 0.00
Balance as of June
Basis for division of each stage and ratio of provision for bad debts
Changes in the book balance of provision for loss with significant changes in the current period
□Applicable Not applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Provision for bad debts for the current period:
In RMB
Changes in the current period
Beginning Ending
Category Recovery or Transfer or
balance Accrual Others balance
reversal write off
Bad debt
provisions
Total 18,041,299.12 190,695.07 -105,732.41 0.00 0.00 18,126,261.78
Reversal or recovery of significant amount of provision for bad debts in the current period:
In RMB
Basis for determining
Recovered or the ratio of provision
Unit name Reason for reversal Recovery method
reversed amount for bad debts and its
rationality
There was no provision for bad debts recovery or reversal of significant amount during the reporting period.
In RMB
Rewards for the key management personnel Items Amount of write-off
Important other receivables write-off:
In RMB
Whether the fund
Write-off
Nature of other Amount of write- Reasons for is generated by
Unit name procedures
receivables off write-off related party
performed
transactions
Explanations on write-off of other receivables:
There was no other receivables with actual write-off during the reporting period.
In RMB
Ratio to the total Balance of
The nature of the ending balance provision for bad
Unit name Ending balance Category
amount of other debts as at the
receivables end of the period
Intercourse
Customer 1 11,389,044.60 Over 3 years 51.73% 11,389,044.60
payment
Intercourse
Customer 2. 1,800,000.00 Over 3 years 8.18% 1,800,000.00
payment
Intercourse
Customer 3 1,018,295.37 Over 3 years 4.63% 1,018,295.37
payment
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Customer 4 Others 980,461.06 Over 3 years 4.45% 980,461.06
Intercourse
Customer 5 592,420.00 Over 3 years 2.69% 592,420.00
payment
Total 15,780,221.03 71.68% 15,780,221.03
None
(1) Advances to suppliers are listed by aging
In RMB
Ending balance Beginning balance
Category
Amount Proportion Amount Proportion
Within 1 year 36,293,418.84 99.26% 28,531,062.77 97.91%
Over 3 years 104,692.53 0.29% 70,145.61 0.24%
Total 36,565,096.13 29,141,210.57
Explanation of the reasons for the delayed settlement of advances to suppliers with an aging of over 1 year and
significant amounts:
At the end of the reporting period, the Group had no significant prepayments with an aging of more than 1 year
and an important amount.
(2) Prepayment status of the top five year-end balances collected by prepaid objects
As at the end of the current period, the aggregate amount of the top five prepayment balances by counterparty
was RMB 25,300,555.35, representing 69.19% of the total prepayment balance.
Whether the company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventories Classification
In RMB
Ending balance Beginning balance
Rewards for the Provision for Provision for
key inventory inventory
management Balance of Book depreciation or Book balance Balance of Book depreciation or Book balance
personnel Items provision for provision for
impairment of impairment of
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
contract contract
performance performance
costs costs
Raw materials 603,672,347.51 61,437,473.20 542,234,874.31 507,546,211.97 36,085,589.06 471,460,622.91
Processing
products
Inventories of
goods
Commissioned
materials
Total 1,112,069,599.03 141,845,334.05 970,224,264.98 1,011,973,907.29 127,331,551.78 884,642,355.51
(2) Data resources recognized as inventories
None
(3) Provision for inventory depreciation and provision for impairment of contract performance
costs
In RMB
Rewards for Increase in the current period Decrease in the current period
the key
Beginning Ending
management
balance Accrual Others Write-off Others balance
personnel
Items
Raw materials 36,085,589.06 25,351,884.14 0.00 0.00 0.00 61,437,473.20
Processing
products
Inventories of
goods
Commissione
d materials
Total 81,280,045.79 0.00 66,766,263.52 0.00
The specific basis for determining the net realizable value of inventories and the reasons for the provision for the
inventories price decline reversed or resold during the period:
Reasons for reversing
Rewards for the key management The specific basis for determining the net or writing off for
personnel Items realizable value inventory depreciation
in the current period
The net realizable value is determined by the
estimated selling price of the relevant finished
Raw materials, work-in-progress Received or sold in the
product, less the estimated costs to be incurred
product, and consignment materials current period
at completion, and less the estimated selling
expenses and the relevant taxes
The net realizable value of the inventory is
It is sold or market
determined by the estimated selling price minus
Finished products value is recovered in
the estimated selling expenses and related
the current period
taxes
Inventory depreciation provision accrued by portfolio
In RMB
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Ending Beginning
Accrual Accrual
Portfolio name Ending Provision for proportion of Beginning Provision for proportion of
balance price fall depreciation balance price fall depreciation
provision provision
Accrual standard of inventory depreciation provision accrued by portfolio
(4)Explanation on the ending balance of inventories containing the capitalization amount of
borrowing costs
At the end of the reporting period, there was no amount of capitalization of borrowing costs.
(5)Explanation on the amortization amount of contract performance costs in the current period
None
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Receivable return cost 15,149,227.21 29,008,785.23
VAT to be deducted and input tax to
be certified
Advance payment of income tax 47,034.59 47,034.59
Total 50,103,302.16 85,649,096.62
Relevant information on compensating assets
In RMB
Reasons
Gains Losses
Dividend designated as
Gains accrued Loss accrued to accumulated accumulated
income being
to other other into other into other
Beginning recognized measured at
Name comprehensive comprehensive comprehensive comprehensive Ending balance
balance during the fair value
income in the income in the income at the income at the
current through other
current period current period end of the end of the
period comprehensive
current period current period
income
Planned to be
Hualian
held by the
Development Group 123,203,400.00 0.00 0.00 120,603,400.00 0.00 0.00 123,203,400.00
Group for a
Co., Ltd.
long time.
Planned to be
Shenzhen Dailishi held by the
Underwear Co., Ltd. Group for a
long time.
Shenzhen South Planned to be
Textile Co., Ltd. held by the
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Group for a
long time.
Planned to be
Shenzhen Xinfang held by the
Knitting Co., Ltd. Group for a
long time.
Planned to be
Jintian
held by the
Industry(Group)Co., 0.00 0.00 0.00 0.00 -14,831,681.50 0.00 0.00
Group for a
Ltd.
long time.
Total 159,261,600.00 0.00 0.00 152,077,743.74 -14,831,681.50 1,643,982.69 159,261,600.00
There is no derecognition of other equity instrument investments this period.
In RMB
Increase/decrease in this period
Balance of
Beginning Cash
Beginning Equity method Adjustment of provision for
balance of dividends or Withdrawal of Ending balance
Name balance (book Add Decreased affirmative other Other equity impairment
provision for profits impairment Others (book value)
value) investment investment profit and loss comprehensive changes as at the end
impairment declared to provision
on investments income of the period
be paid
I. Joint ventures
Shenzhen
Guanhua
Printing & 104,274,952.84 0.00 0.00 0.00 -3,449,190.76 0.00 0.00 0.00 0.00 0.00 100,825,762.08 0.00
Dyeing Co.,
Ltd.
Subtotal 104,274,952.84 0.00 0.00 0.00 -3,449,190.76 0.00 0.00 0.00 0.00 0.00 100,825,762.08 0.00
Shenzhen
Changlianfa
Printing and 3,308,634.07 0.00 0.00 0.00 137,757.74 0.00 0.00 -241,500.00 0.00 0.00 3,204,891.81 0.00
dyeing
Company
Subtotal 3,308,634.07 0.00 0.00 0.00 137,757.74 0.00 0.00 -241,500.00 0.00 0.00 3,204,891.81 0.00
Total 107,583,586.91 0.00 0.00 0.00 -3,311,433.02 0.00 0.00 -241,500.00 0.00 0.00 104,030,653.89 0.00
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) Investment properties measured at the cost mode
Applicable □Not applicable
In RMB
Rewards for the key management personnel Items House, Building Tota
I. Original price
(1) Outsourcing 0.00 0.00
(2) Transfer from inventories, fixed assets and construction in
progress
(3) Increase in business combination 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
II.Accumulated amortization
(1) Provision or amortization 4,780,252.98 4,780,252.98
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
(1) Provision 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
(2) Investment properties measured by fair value
□Applicable Not applicable
(3) Conversion to investment properties and measurement at fair value
None
(4) Investment properties without certificate of title
In RMB
Rewards for the key management
Book balance Reason
personnel Items
Unable to apply for warrants due to
Houses and Building 9,434,445.01
historical reasons
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Fixed asset 1,541,311,409.66 1,657,314,603.81
Total 1,541,311,409.66 1,657,314,603.81
(1) Fixed assets
In RMB
Rewards for the
key Houses and Machinery Other
Transportations Tota
management buildings equipment equipment
personnel Items
I. Original price
balance 7 0
the current 0.00 4,385,368.19 0.00 649,280.10 5,034,648.29
period
(1) Purchase 0.00 4,385,368.19 0.00 649,280.10 5,034,648.29
(2) Transfer from
construction in 0.00 0.00 0.00 0.00 0.00
progress
(3) Increase in 0.00 0.00 0.00 0.00 0.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
business
combination
the current 6,737,926.76 758,351.52 8,761.06 233,896.93 7,738,936.27
period
(1) Disposal or
scrapping
(2) Others 6,737,926.76 0.00 0.00 0.00 6,737,926.76
balance 4 2
II. Accumulated
depreciation
balance 3 4
the current 11,402,854.79 100,030,401.64 1,128,123.49 1,682,626.66 114,244,006.58
period
(1) Provision 11,402,854.79 100,030,401.64 1,128,123.49 1,682,626.66 114,244,006.58
the current 0.00 451,750.48 2,014.98 220,332.63 674,098.09
period
(1) Disposal or
scrapping
balance 9 3
III. Impairment
provision
balance
the current 0.00 0.00 0.00 0.00 0.00
period
(1) Provision 0.00 0.00 0.00 0.00 0.00
the current 0.00 266,453.89 0.00 4,548.43 271,002.32
period
(1) Disposal or
scrapping
balance
at the end of the 472,941,128.63 5,951,984.75 5,312,240.27
period
at the beginning 491,081,910.18 7,086,854.32 6,354,602.70
of the period
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2) Temporarily idle fixed assets
None
(3)Fixed assets leased out through operating leases
None
(4) Fixed assets without certificate of title
In RMB
Rewards for the key management Reason for failure to properly handle
Book balance
personnel Items the certificate of title
Unable to apply for warrants due to
House, Building 10,249,847.57
historical reasons
Other explanations
At the end of the reporting period, the Group's fixed assets mortgaged for bank borrowings are detailed in "21.
Assets with restricted ownership or right of use".
(5) Impairment test of fixed assets
□Applicable Not applicable
(6) Disposal of fixed assets
None
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Construction in progress 204,595,310.01 179,954,389.78
Total 204,595,310.01 179,954,389.78
(1) Construction in progress situation
In RMB
Rewards for Ending balance Beginning balance
the key
management Withdrawn Withdrawn
Balance of Balance of
personnel impairment Book balance impairment Book balance
Book Book
Items provision provision
Project of the
Polarizer
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Production Line
Odd- job Works 2,144,000.56 0.00 2,144,000.56 0.00 0.00 0.00
Total 204,595,310.01 0.00 204,595,310.01 179,954,389.78 0.00 179,954,389.78
(2) Changes of significant construction in progress in the current period
In RMB
Ratio of Including:
Transfer into Accumulated Interest
Other decreases accumulated Capitalized
Beginning Increase in the fixed assets in Progress of capitalization capitalization
Name Budget in the current Ending balance project amount of Capital Source
balance current period the current construction amount of rate for the
period investment in interest in the
period interest current period
budget (%) current period
polarizer Own- funds and
production line Borrowings
project (Line 8)
Total 1,333,600,000.00 179,954,389.78 22,496,919.67 0.00 0.00 202,451,309.45 1,929,917.53 1,753,511.24 2.24%
(3) Provision for impairment of construction in progress in the current period
None
(4) Impairment test of construction in progress
□Applicable Not applicable
(5) Project materials
None
(1) Right-of-use assets status
In RMB
Rewards for the key
management personnel Houses and buildings Machinery equipment Tota
Items
I. Original price
current period
(1) Addition 3,836,984.51 777,400.55 4,614,385.06
current period
II. Accumulated
depreciation
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
current period
(1) Provision 4,635,681.33 455,849.67 5,091,531.00
current period
(1) Disposal 0.00 0.00 0.00
III. Impairment provision
current period
(1) Provision 0.00 0.00 0.00
current period
(1) Disposal 0.00 0.00 0.00
end of the period
beginning of the period
(2) Impairment test of right-of-use assets
□Applicable Not applicable
(1) Intangible assets situation
In RMB
Rewards for the key
Land use right Patent right Software Tota
management personnel Items
I. Original price
(1) Purchase 49,131,000.00 0.00 193,000.00 49,324,000.00
(2) Internal R&D 0.00 0.00 0.00 0.00
(3) Increase in business
combination
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
period
(1) Disposal 0.00 0.00 0.00 0.00
II.Accumulated amortization
(1) Provision 1,256,771.50 0.00 179,311.83 1,436,083.33
period
(1) Disposal 0.00 0.00 0.00 0.00
III. Impairment provision
(1) Provision 0.00 0.00 0.00 0.00
period
(1) Disposal 0.00 0.00 0.00 0.00
the period
beginning of the period
The ratio of intangible assets formed through the Company's internal research and development to the balance of
intangible assets at the end of the current period is 0.00%
(2) Data resources recognized as intangible assets
None
(3) Details of land use right without certificate of title
None
(4) Impairment test of intangible assets
□Applicable Not applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) Original book value of goodwill
In RMB
Name of the investee or matters Increase in the Decrease in the Ending
Beginning balance
that form goodwill current period current period balance
SAPO Photoelectric 9,614,758.55 0.00 0.00 9,614,758.55
Shenzhen Beauty Century
Garment Co., Ltd.
Total 11,782,099.76 0.00 0.00 11,782,099.76
(2) Provision for impairment of goodwill
In RMB
Name of the investee or matters Increase in the Decrease in the Ending
Beginning balance
that form goodwill current period current period balance
SAPO Photoelectric 9,614,758.55 0.00 0.00 9,614,758.55
Shenzhen Beauty Century
Garment Co., Ltd.
Total 11,782,099.76 0.00 0.00 11,782,099.76
(3) Relevant information on the asset group or portfolio of asset groups of the goodwill
belongs to
None
(4) Specific determination method of recoverable amount
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(5) Completion of performance commitment and corresponding goodwill impairment
There is a performance commitment when the goodwill is formed and the reporting period or the previous period of the
reporting period is within the performance commitment period
□Applicable Not applicable
Other explanations
In RMB
Rewards for the Amount
Beginning Increase in the Other reduction
key management amortized in the Ending balance
balance current period amount
personnel Items current period
Decoration and
facilities 7,030,847.01 2,200,664.43 1,105,679.10 0.00 8,125,832.34
renovation fee
Total 7,030,847.01 2,200,664.43 1,105,679.10 0.00 8,125,832.34
(1) Deferred tax assets without offset
In RMB
Rewards for the key Ending balance Beginning balance
management Deductible temporary Deferred income tax Deductible temporary Deferred income tax
personnel Items difference assets difference assets
Asset impairment
provision
Unrealized profit
from internal 1,153,906.28 288,476.57 1,967,734.40 295,160.16
transactions
Deductible loss 84,464,489.24 12,669,673.39 84,464,489.24 12,669,673.38
Credit loss provision 46,792,975.53 8,560,854.70 47,068,758.51 8,605,770.45
Employee wage
Changes in fair value
of investment in
other equity
instruments
Changes in fair value
of derivative financial 572,148.11 85,822.22 3,362,200.19 504,330.03
liabilities
liabilities
Total 437,353,405.22 69,430,517.70 423,445,238.06 67,247,257.27
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2) Deferred tax liabilities without offset
In RMB
Rewards for the key Ending balance Beginning balance
management Deductible temporary Deferred income tax Deductible temporary Deferred income tax
personnel Items difference assets difference assets
Changes in fair value
of investment in
other equity
instruments
The difference
between the initial
recognition cost of
long-term equity
investment and tax
basis
Rent receivable 5,405,215.87 1,351,303.97 6,414,441.92 1,603,610.48
assets
Changes in fair value
of financial assets 7,165,205.48 1,791,301.38 2,425,205.47 606,301.37
held for trading
Total 243,149,556.11 59,381,328.97 239,895,928.09 58,534,396.54
(3) Deferred tax assets or liabilities listed net amount after write-offs
In RMB
Deduction amount of Ending balance of Deduction amount of Beginning balance of
Rewards for the key
deferred tax assets deferred tax assets deferred tax assets and deferred tax assets
management
and liabilities at the or liabilities after liabilities from the or liabilities after
personnel Items
end of the period write-off beginning of the period write-off
Deferred income tax
-11,374,490.06 58,056,027.64 -11,469,966.38 55,777,290.89
assets
Deferred income tax
-11,374,490.06 48,006,838.91 -11,469,966.38 47,064,430.16
assets
(4) Details of unconfirmed deferred tax assets
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Deductible temporary difference 3,040,068.92 9,402,132.77
Deductible loss 273,168,348.51 325,441,799.20
Total 276,208,417.43 334,843,931.97
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following
years
In RMB
Year Ending amount Beginning amount Remark
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Year 2035 10,789,568.41 25,121,815.11
Total 273,168,348.51 325,441,799.20
Other explanations
Based on the Group's profit forecast for the future periods, the Group believes that it is highly probable to obtain
sufficient taxable income to utilize the above-mentioned deductible temporary differences and deductible losses in the
future periods, so the relevant deferred tax assets are recognized.
In RMB
Rewards for the Ending balance Beginning balance
key Withdrawn Withdrawn
management Balance of Balance of
impairment Book balance impairment Book balance
personnel Items Book Book
provision provision
Prepayment for
engineering and 71,281,883.46 0.00 71,281,883.46 11,326,699.63 0.00 11,326,699.63
equipment
Investment
funds to be 25,760,086.27 0.00 25,760,086.27 25,760,086.27 0.00 25,760,086.27
liquidated
Total 97,041,969.73 0.00 97,041,969.73 37,086,785.90 0.00 37,086,785.90
In RMB
Rewards for the Ending Beginning
key
Restricted Restricted Restricted Restricted
management Balance of Book Book balance Balance of Book Book balance
circumstances circumstances circumstances circumstances
personnel Items
Account Account
Restricted right Restricted right
Monetary funds 15,719,606.07 15,719,606.07 Freezing and 685,396.65 685,396.65 Freezing and
of use of use
Margin Margin
The The
Notes Restricted right endorsement of Restricted right endorsement of
receivable of use the note is not of use the note is not
terminated terminated
Restricted right Restricted right
Fixed asset 575,157,823.88 417,626,862.41 Mortgage 581,895,750.64 432,224,852.53 Mortgage
of use of use
Restricted right Restricted right
Intangible asset 44,770,083.00 29,867,438.47 Mortgage 44,770,083.00 30,309,394.69 Mortgage
of use of use
Total 669,584.188.32 497,150,582.32 680,352,966.36 516,221,379.94
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Forward foreign exchange contracts 572,148.11 4,071,800.19
Total 572,148.11 4,071,800.19
In RMB
Balance at the end of this year Ending balance Beginning balance
Bank acceptance bill 14,734,317.72 0.00
Total 14,734,317.72 0.00
At the end of the current period, the Totall amount of matured but unpaid notes payable was RMB 0.00. The
reason for non-payment upon maturity is that the Group had no matured but unpaid notes payable at the end of the
reporting period.
(1) Presentation of accounts payable
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Goods 462,049,699.32 315,492,749.54
Service charge 12,003,862.74 17,809,719.59
Subcontracting payment 2,577,172.94 8,954,077.38
Loyalities 1,803,564.00 1,949,556.00
Others 1,164,798.76 450,733.38
Total 479,599,097.76 344,656,835.89
(2) Significant accounts payable aging more than one year or overdue
In RMB
Rewards for the key management Reason for no settlement or carrying-
Ending balance
personnel Items forward
Other explanations:
At the end of the reporting period, the Group had no significant accounts payable with aging over 1 year or
overdue.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Other payables 142,982,024.31 159,826,234.73
Total 142,982,024.31 159,826,234.73
(1) Interest payable
None
(2) Dividends payable
None
(3) Other payable
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Engineering equipment payment 29,521,966.69 43,922,031.06
Current payment 53,721,235.92 46,981,495.00
Deposit and security deposit 50,173,501.99 57,213,864.04
Others 9,565,319.71 11,708,844.63
Total 142,982,024.31 159,826,234.73
In RMB
Rewards for the key management Reason for no settlement or carrying-
Ending balance
personnel Items forward
Other explanations
At the end of the reporting period, the Group had no other significant accounts payable with aging over 1 year or
overdue.
(1) Presentation of advances from customers
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Rent and other 781,506.37 769,227.07
Total 781,506.37 769,227.07
(2) Important advances from customers with aging more than 1 year or overdue
At the end of the reporting period, the Group had no significant accounts receivable with aging over 1 year or
overdue.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Goods 2,650,257.63 3,132,419.01
Total 2,650,257.63 3,132,419.01
Significant contract liabilities with aging over 1 year
None
Amount and reasons for significant changes in book value during the reporting period
None
(1) Presentation of employee compensation payable
In RMB
Rewards for the key
Increase in the Decrease in the
management Beginning balance Ending balance
current period current period
personnel Items
I. Short-term
compensation
II. Post-employment
benefits-defined 0.00 11,652,130.37 11,652,130.37 0.00
contribution plans
III. Dismissal benefits 1,590,522.36 0.00 1,101,097.88 489,424.48
Total 52,647,315.74 130,358,717.54 141,335,392.29 41,670,640.99
(2) Presentation of short-term compensation
In RMB
Rewards for the key
Increase in the Decrease in the
management Beginning balance Ending balance
current period current period
personnel Items
allowances and 48,478,820.60 104,279,632.12 114,207,445.78 38,551,006.94
subsidies
premiums
Including:Medical
insurance
Work injury
insurance
Maternity insurance 0.00 356,810.54 356,810.54 0.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
funds
and employee 2,548,488.28 2,313,440.31 2,318,020.02 2,543,908.57
education expenses
Total 51,056,793.38 118,706,587.17 128,582,164.04 41,181,216.51
(3) Presentation of defined contribution plans
In RMB
Rewards for the key
Increase in the Decrease in the
management Beginning balance Ending balance
current period current period
personnel Items
insurance premiums
insurance premiums
payment
Total 0.00 11,652,130.37 11,652,130.37 0.00
Other explanations
The Group participates in pension insurance and unemployment insurance plans established by government
agencies according to regulations, and according to the plans, the Group pays fees to these plans according to the
prescribed standards. In addition to the above-mentioned monthly deposit fees, the Group will no longer assume
further payment obligations. The corresponding expenses are included in the current profits and losses or the related
asset costs when incurred.
The Group shall pay RMB 9,805,179.70 and RMB 400,691.43 to the endowment insurance and unemployment
insurance plans respectively for the current year (2025 H1: RMB 9,389,734.62 and RMB 407,578.97). As of June 30,
the reporting period.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
VAT 516,019.70 251,065.10
Consumption tax 0.00 0.00
Enterprise Income tax 3,649,596.34 3,763,975.34
Individual Income tax 1,005,395.32 670,592.00
Urban maintenance and construction
tax
Other taxes 5,055,035.51 1,121,186.11
Total 10,226,046.87 5,806,818.55
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Long-term borrowings maturing within
one year
Lease liabilities maturing within one year 6,618,446.89 7,267,259.91
Estimated liabilities due within one year 10,040,486.12 10,664,297.79
Total 77,244,911.71 65,964,666.28
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Return payable 17,253,721.89 31,679,349.15
Endorsed and unexpired acceptance bill 33,936,675.37 53,001,736.07
Product quality assurance 12,074,028.32 3,705,710.05
Total 63,264,425.58 88,386,795.27
Other explanations:
None
(1) Classification of long-term borrowings
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Credit loans 156,082,785.81 141,852,077.65
Guaranteed loan (note) 147,124,355.94 167,899,085.74
Less: Long-term loans due within one
-60,585,978.70 -48,033,108.58
year
Total 242,621,163.05 261,718,054.81
Description of the classification of long-term borrowings:
Note: SAPO Photoelectric, a subsidiary of the Company, obtained the loan by mortgaging the real estate such as
the plant it held, and the Company and Hengmei Optoelectronics Co., Ltd. provided 60% and 40% joint and several
liability guarantee for the loan respectively.
Other explanations, including interest rate range:
pledging its real estate properties such as plants, and the interest rate of the long-term borrowings ranges from 3.26%
to 3.31%.
interest rate of the credit borrowings is 2.24%.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Less: Lease liabilities due within one
-6,618,446.89 -7,267,259.91
year
Total 10,705,698.47 10,415,997.17
Other explanations:
The Group's lease liabilities are analysed by the maturity of the undiscounted remaining contractual obligations as
follows:
Rewards for the key
management personnel Within 1 month 1 to 3 months 1 to 5 years Tota
months years
Items
Ending balance 998,254.36 1,748,414.73 5,102,153.56 9,772,147.28 2,809,029.24 20,429,999.17
Beginning balance 1,049,935.94 2,078,351.34 4,688,581.14 9,705,967.44 1,937,423.13 19,460,258.99
In RMB
Rewards for the
Beginning Increase in the Decrease in the
key management Ending balance Reason
balance current period current period
personnel Items
Received the
(IX) Government
subsidies
subsidies
Total 83,469,949.03 343,732.72 9,908,067.72 73,905,614.03
Other explanations:
None
In RMB
Changes during the period (+, -)
Beginning Capitalization
Issuance of Bonus Ending balance
balance of public Others Subtotal
new share shares
reserve
Total of
capital 506,521,849.00 0.00 0.00 0.00 0.00 0.00 506,521,849.00
shares
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key
Increase in the Decrease in the
management Beginning balance Ending balance
current period current period
personnel Items
Capital premium
(share premium)
Other capital
reserves
Total 1,961,599,824.63 0.00 0.00 1,961,599,824.63
In RMB
Amount in the current period
Less:Amount
transferred into Less:Prior
profit and loss in period included
Rewards for the
Amount before the current in other After-tax
key Beginning After-tax
income tax in period that composite Less:Income tax attribute to Ending balance
management balance attribute to the
the current recognized into income transfer expenses minority
personnel Items parent company
period other to retained shareholder
comprehensive income in the
income in prior current period
period
I. Other
comprehensive
income that
cannot be
reclassified into
profit or loss
Changes in fair
value of
investment in 102,271,832.32 0.00 0.00 0.00 0.00 0.00 0.00 102,271,832.32
other equity
instruments
Total of other
comprehensive 102,271,832.32 0.00 0.00 0.00 0.00 0.00 0.00 102,271,832.32
income
In RMB
Rewards for the key
Increase in the Decrease in the
management Beginning balance Ending balance
current period current period
personnel Items
Statutory surplus
reserve
Total 106,805,904.93 0.00 0.00 106,805,904.93
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Rewards for the key management
Current period Previous period
personnel Items
Retained earnings as at the end of
the previous period before the 302,520,158.30 272,608,113.66
adjustment
Adjustment of total undistributed
profit at the beginning of the period 0.00 0.00
(+ for increase and - for decrease)
Undistributed profits at the beginning
of the period after adjustment
Plus: Net profit attributable to owners
of the parent company in this period
Offsetting losses with capital
reserve
Less: Withdrawal of statutory surplus
reserve
Withdrawal of discretionary
surplus reserves
Withdrawal of general risk
reserves
Common stock dividends
payable
Ordinary share dividends
transferred to share capital
Undistributed profits as at the end of
the period
Details of adjustment to undistributed profits as at the beginning of the period:
regulations, the opening undistributed profits was RMB0.
RMB0.
In RMB
Rewards for the key Amount in the current period Amount in the previous period
management
personnel Items Business income Business cost Business income Business cost
Income from Main
Business
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Other business 23,130,526.86 14,889,232.70 34,048,072.22 29,329,292.33
Total 1,588,723,198.14 1,322,616,178.72 1,600,481,626.31 1,362,512,734.09
Breakdown of operating revenue and operating costs:
In RMB
Division 1 Division 2 Tota
Contract classification
Turnover Operation cost Turnover Operation cost Turnover Operation cost
Business type 1,513,251,246.96 1,295,208,878.78 75,471,951.18 27,407,299.94 1,588,723,198.14 1,322,616,178.72
Including:
Polarizer sales 1,513,251,246.96 1,295,208,878.78 0.00 0.00 1,513,251,246.96 1,295,208,878.78
Lease and Management of
Property
Classification by business area 1,513,251,246.96 1,295,208,878.78 75,471,951.18 27,407,299.94 1,588,723,198.14 1,322,616,178.72
Including:
Domestic 1,291,705,728.14 1,106,552,128.67 75,471,951.18 27,407,299.94 1,367,177,679.32 1,133,959,428.61
Overseas 221,545,518.82 188,656,750.11 0.00 0.00 221,545,518.82 188,656,750.11
Total 1,513,251,246.96 1,295,208,878.78 75,471,951.18 27,407,299.94 1,588,723,198.14 1,322,616,178.72
Other explanations
The Group's businesses are mainly the production and sales of polarizers. For goods sold to customers, the
Group recognizes income when the control of the goods is transferred, that is, when the goods are delivered to the
designated place of the other party and signed by the other party. Since the delivery of goods to customers represents
the right to unconditionally receive the contract consideration, the maturity of the money only depends on the passage
of time, so the Group recognizes a receivable when the goods are delivered to professional customers. When the
customer prepays the payment, the Group recognizes the transaction amount received as a contractual liability until
the goods are delivered to the customer.
The Group provides property and leasing services to customers, which is a performance obligation to be fulfilled
within a certain period of time. The Group recognizes income in the process of providing property and leasing services.
Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been signed but not
performed or not fully performed yet at the end of the reporting period is RMB 2,650,257.63, of which RMB
RMB0.00 is expected to be recognized in 2028.
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Urban maintenance and construction
tax
Surcharge for education 122,400.41 132,989.76
Property tax 4,320,491.52 4,270,965.18
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Land use taxes 185,694.72 185,694.72
Vehicle and vessel use tax 2,040.00 1,170.00
Stamp duty 920,363.58 879,283.21
Others 778.95 2,179.87
Total 5,723,129.90 5,659,061.80
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Employee remuneration 47,667,252.38 43,886,236.10
Depreciation and amortization cost 6,250,549.91 8,075,177.45
Leasing and utilities 1,161,014.58 1,318,905.59
Intermediary fees 1,122,559.54 1,285,128.08
Travel expenses 218,911.51 252,585.67
Office expenses 490,701.64 376,182.51
Business entertainment 382,590.68 358,372.72
Others 3,610,165.09 4,079,976.42
Total 60,903,745.33 59,632,564.54
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Employee remuneration 6,387,288.91 7,148,494.80
Sales service charge 6,217,672.93 5,822,600.27
Others 3,109,974.27 1,973,390.12
Business entertainment 593,939.93 542,128.76
Travel expenses 406,698.24 544,505.33
Total 16,715,574.28 16,031,119.28
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Employee remuneration 9,356,296.44 8,472,938.45
Material consumption 38,745,617.07 42,300,970.33
Depreciation 769,598.45 1,239,700.65
Others 543,334.80 726,136.76
Total 49,414,846.76 52,739,746.19
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Interest expenses (Note) 2,863,362.87 3,666,950.38
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Interest income -1,433,948.01 -2,493,076.60
Profit or loss on exchange -7,005,018.25 20,562,319.66
Handling fees and others 611,817.78 932,295.46
Total -4,963,785.61 22,668,488.90
Other explanations
Note: During the reporting period, the interest expense of the lease liabilities was RMB 358,284.25.
In RMB
Source of other income Amount in the current period Amount in the previous period
(IX) Government subsidies 9,908,067.72 8,700,501.44
Tax subsidy 7,291,977.68 9,331,437.35
Others 167,003.45 130,123.63
Total 17,367,048.85 18,162,062.42
In RMB
Sources of income from changes in
Amount in the current period Amount in the previous period
fair value
Transactional financial assets 7,165,205.48 5,127,945.21
Derivative financial liabilities -572,148.11 783,062.42
Total 6,593,057.37 5,911,007.63
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Income from long-term equity
investment measured by adopting -3,311,433.02 -3,645,599.07
the equity method
Investment income of trading
financial assets during the holding 2,462,280.90 3,345,206.16
period
Dividend income from investments in
other equity instrument during the 1,643,982.69 748,000.00
holding period
Investment income (loss) from
derecognition of derivative financial -4,334,736.33 -317,500.00
liabilities
Total -3,539,905.76 130,107.09
In RMB
Rewards for the key management Amount in the current period Amount in the previous period
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
personnel Items
Losses from bad debts of accounts
receivable
Bad debt loss of other receivables -84,962.66 -6.04
Total 275,783.04 815,027.65
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
I. Inventories depreciation loss and
contract performance cost -79,106,067.18 -55,273,530.83
impairment losses
Total -79,106,067.18 -55,273,530.83
In RMB
Source of gains from disposal of
Amount in the current period Amount in the previous period
assets
Gains from disposal of fixed assets 0.00 1,163,586.44
In RMB
Rewards for the key
Amount in the current Amount in the previous The amount of non-
management personnel
period period operating gains & lossed
Items
Non-current asset
Disposition loss
Compensation expenses 106,491.74 135,405.57 106,491.74
Gains from the damage
and scrapping of non- 5,793.82 0.00 5,793.82
current assets
Others 63,472.32 13,133.66 63,472.32
Total 175,972.60 3,104,116.81 175,972.60
In RMB
Rewards for the key
Amount in the current Amount in the previous The amount of non-
management personnel
period period operating gains & lossed
Items
Compensation expenses 473,014.46 0.00 473,014.46
Non-current asset
Disposition loss
Others 274,686.93 36,046.56 274,686.93
Total 774,974.25 57,900.79 774,974.25
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) Income tax expenses schedule
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Current income tax expense 5,425,150.46 6,113,497.06
Deferred income tax expense -1,336,328.00 1,550,469.29
Total 4,088,822.46 7,663,966.35
(2) Adjustment process of accounting profits and income tax expenses
In RMB
Rewards for the key management personnel Items Amount in the current period
Total profits 79,304,423.43
Current income tax expense accounted by tax and
relevant
Influence of different tax rates applied by some
-4,628,063.32
subsidiaries
Influence of adjustments to the income tax for the prior
years
The impact of non-taxable income -869,435.17
Non-deductible costs, expenses and losses 317,883.28
Influence of deductible losses on the use of preliminarily
-5,623,407.98
unrecognized deferred tax assets in previous periods
Effect of deductible temporary differences or deductible
losses from deferred tax assets unrecognized in the 0.00
current period
ax impact of research and development fee plus
-5,558,023.05
deduction
Income tax expenses 4,088,822.46
See Notes VII 37 for details
(1) Cash related to operating activities
Other cash received related to operating activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Bill deposits and deposits 20,466,803.18 24,284,760.87
Current account and other 3,813,509.98 37,772,057.08
(IX) Government subsidies 343,732.72 4,199,478.21
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Interest income 1,215,448.21 1,802,046.53
Total 25,839,494.09 68,058,342.69
Other cash paid related to operating activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Bill deposits and deposits 18,357,865.08 11,692,439.32
Current account and other 38,280,919.73 28,654,553.90
Total 56,638,784.81 40,346,993.22
(2) Cash related to investing activities
Other cash received related to investing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Wealth management, investments
and others
Total 215,577,600.00 518,000,000.00
Important cash received related to investing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Currency fund 15,000,000.00 18,000,000.00
Bank wealth management and others 200,577,600.00 500,000,000.00
Total 215,577,600.00 518,000,000.00
Other cash paid related to investing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Wealth management, investments
and others
Total 228,984,136.52 500,000,000.00
Important cash paid related to investing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Currency fund 20,000,000.00 0.00
Bank wealth management and others 208,984,136.52 500,000,000.00
Total 228,984,136.52 500,000,000.00
(3) Cash related to financing activities
Other cash received related to financing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Total 0.00 0.00
Other cash paid related to financing activities
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Lease payment 5,564,480.21 6,983,290.34
Total 5,564,480.21 6,983,290.34
Changes in various liabilities arising from financing activities
Applicable □Not applicable
In RMB
Rewards for Increase in the current period Decrease in the current period
the key
Beginning
managemen Changes in Non-cash Changes in Non-cash Ending balance
balance
t personnel cash changes cash changes
Items
Long-term
loans
liabilities
Total 327,434,420.47 24,230,052.00 9,463,958.35 40,597,143.71 0.00 320,531,287.11
(4) Notes to cash flows expressed in net amount
Rewards for the key
Basis for presentation of
management personnel Relevant facts Financial impact
net amount
Items
(5) Significant activities and financial impacts that do not involve current cash receipts and
payments, but affect the financial position of the enterprise or may affect the cash flows in the
future
The Group has no significant activities that do not involve current cash receipts and payments but affect the
financial position of the enterprise or may affect the cash flows of the enterprise in the future.
(1) Supplementary information to the statement of cash flows
In RMB
Items The current period Amount in previous period
from operating activities:
Net Profit 75,215,600.97 47,528,421.58
Add: asset impairment provision 78,830,284.14 54,458,503.18
Depreciation of fixed assets,
depletion of oil and gas assets, 119,024,259.56 119,208,355.02
depreciation of productive biological
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
assets
Depreciation of right-of-use
assets
Amortization of intangible
assets
Amortization of Long-term
deferred expenses
Losses from disposal of fixed
assets, intangible assets and other 0.00 -1,163,586.44
long-term assets ( "-" for gains)
Losses on write-off of fixed
assets ("-" for gains)
Losses from changes in fair
-6,593,057.37 -2,446,624.07
value ("-" for gains)
Financial expenses ("-" for
-3,182,062.73 -3,649,406.53
gains)
Investments losses ("-" for
gains)
Decreases in deferred tax
-2,278,736.75 1,875,265.31
assets (“-” for increases)
Increase in deferred tax
liabilities ("-" for decreases)
Decreases in inventories ("-"
-85,581,909.47 -20,257,532.33
for increases)
Decreases in operating
receivables (“-” for increases)
Increases in operating
payables (“-” for decreases)
Others 0.00 0.00
Net cash flows arising from
operating activities
activities not involving in cash
receipts and payments:
Transfer of debts into capital 0.00 0.00
Convertible corporate bonds
maturing within 1 year
Fixed assets leased from financing 0.00 0.00
equivalents:
Ending balance of cash 501,894,557.90 577,224,121.16
Less: beginning balance of cash 449,257,554.81 302,084,839.35
Plus: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase in cash and cash
equivalents
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2) Net cash paid for acquisition of subsidiaries in the current period
None
(3) Net cash received for disposal of subsidiaries in the current period
None
(4) Breakdowns of cash and cash equivalents
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
I. Cash 501,894,557.90 449,257,554.81
Including: Cash at hand 8,507.96 15,510.21
Demand bank deposit 501,886,049.94 449,242,044.60
II. Cash equivalents 0.00 0.00
III. Ending balance of cash and cash
equivalents
Including: cash and cash equivalents
with restricted use right by parent 0.00 0.00
company or subsidiaries of the Group
(5) Limited use but still presented as cash and cash equivalents
In RMB
Rewards for the key
Reasons for classified as
management personnel The current period Amount in previous period
cash and cash equivalents
Items
Cannot be used for
Bill and L/C guarantee 6,920,565.27 2,104,358.22
payment at any time
Demand interest and 7-day Cannot be used for
notice deposit interest payment at any time
Others 8,799,040.80 3,401,500.00 Account Freezing
Total 15,959,604.79 6,084,861.45
(6) Monetary funds not classified as cash and cash equivalents
At end of the reporting period, the Group had no cash and cash equivalents with restricted use that were still
presented as such.
(7) Notes on other significant activities
None
Specify the name of "others" items adjusted to the ending balance of the previous year, the adjusted amount and other
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
matters:
None
(1) Foreign currency monetary items
In RMB
Rewards for the key
Ending balance of foreign Ending balance of
management personnel Exchange rate
currency translated RMB
Items
Monetary funds 193,638,552.88
Including:USD 4,700,011.79 6.8109 32,011,310.30
HKD 796,368.62 0.8686 691,725.78
Yen 3,831,798,019.00 0.0420 160,935,516.80
Including:USD 19,288,987.63 6.8109 131,375,365.85
HKD 278,280.00 0.8686 241,716.01
Other receivable 480,349.76
Including:USD 70,526.62 6.8109 480,349.76
Accounts payable 25,447,275.51
Including:USD 3,047,608.78 6.8109 20,756,958.64
Yen 5,584,190,281.00 0.0420 234,535,991.80
HKD 177,671.05 0.8686 136,325.07
Other payables 4,883,759.29
Including:USD 716,957.20 6.8109 4,883,123.79
Yen 15,131.00 0.0420 635.50
(2) The nature of the lack of convertibility of the currency and its financial impact, the spot
exchange rates adopted and the estimation process, as well as the risks faced by the
enterprise arising from the lack of convertibility of the currency
□Applicable Not applicable
(3) Description of foreign operating entities, including, for significant foreign operating entities,
disclosure of their principal place of business outside of the country, the recording currency
and the basis of selection, and disclosure of the reasons for any change in the recording
currency
□Applicable Not applicable
(4) Lack of convertibility between the functional currency of the overseas operation and the
presentation currency of the enterprise
□Applicable Not applicable
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) The Company acted as lessee:
Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable Not applicable
Lease expense of short-term leases or low-value assets with simplified treatment
Applicable □Not applicable
The Group has leased a number of assets, including houses and buildings, with lease terms ranging from 1 to 10
years. The above-mentioned right-of-use assets cannot be used for the purpose of loan mortgage, guarantee, etc.
The short-term lease expenses subject to simplified accounting treatment and recognized in the current profit or
loss in this period amounted to RMB 582,500.00 (previous period: RMB 476,994.45).
The total lease-related cash outflow for the period is RMB6,199,405.21 (previous period: RMB7,460,284.79).
Situations involving sale and leaseback transactions
None
(2) The Company acted as the lessor
Operating lease as a lessor
Applicable □Not applicable
In RMB
Thereinto: Income related to variable
Rewards for the key management
Lease income lease payments that are not included
personnel Items
in lease receipts
Houses and buildings 47,257,095.41 0.00
Total 47,257,095.41 0.00
Financing lease as the lessor
□Applicable Not applicable
Undiscounted lease receipts for each of the next five years
Applicable □Not applicable
In RMB
Rewards for the key management Annual undiscounted lease receipts
personnel Items Ending amount Beginning amount
The First year 82,125,047.62 62,836,298.43
The Second year 45,979,790.57 42,497,987.11
The Third year 25,572,470.00 31,889,090.71
The Fourth year 9,630,559.76 9,303,836.50
The Fifth year 8,495,216.95 5,911,687.52
Total undiscounted lease receipts 1,825,738.99 4,518,270.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
after five years
Reconciliation of undiscounted lease receipts and net lease investment
None
(3) Recognize the profit or loss from financing lease sales as a manufacturer or distributor
□Applicable Not applicable
VIII. R&D expenditures
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Employee remuneration 9,356,296.44 8,472,938.45
Material consumption 38,745,617.07 42,300,970.33
Depreciation 769,598.45 1,239,700.65
Others 543,334.80 726,136.76
Total 49,414,846.76 52,739,746.19
Thereinto: Expensed R&D
expenditures
Capitalized R&D expenditures 0.00 0.00
None
None
IX. Changes in consolidation scope
The consolidation scope of the Company during the reporting period has not changed.
X. Equity in other entities
(1) Compositions of the Group
In RMB
Proportion of shares
Place of Main place of Place of held(%) Acquisition
Subsidiary name Business nature
registration business registration method
Direct Indirect
Shenzhen Lisi
Industrial 2,360,000.00 Shenzhen Shenzhen Property leasing 100.00% Establishment
Development Co.,
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Ltd.
Shenzhen Shenfang
Property Property
Management Co., management
Ltd.
Shenzhen Beauty Textile
Century Garment Co., 13,000,000.00 Shenzhen Shenzhen production and 100.00% Establishment
Ltd. sales
Shenzhen Shenfang
Sungang Property Property
Management Co., management
Ltd.
Polarizer
SAPO Photoelectric 583,333,333.00 Shenzhen Shenzhen production and 60.00% Acquisition
sale
Shengtou (Hongkong)
Co., Ltd.
(2) Significant non-wholly-owned subsidiaries
In RMB
Profit or loss Dividends declared to
Balance of minority
Minority attributable to minority be distributed to
Subsidiary name interests as at the
shareholding ratio shareholders in this minority shareholders
end of the period
period in this period
SAPO Photoelectric 40.00% 24,439,436.60 0.00 1,335,085,040.29
(3) Key financial information of significant non-wholly-owned subsidiaries
In RMB
Ending balance Beginning balance
Subsidiary
Non-current Current Non-current Non-current Current Non-current
name Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
SAPO
Photoelectric
In RMB
Amount in the current period Amount in the previous period
Subsidiary Total Cash flow from Total Cash flow from
name Turnover Net Profit comprehensive operating Turnover Net Profit comprehensive operating
income activities income activities
SAPO
Photoelectric
controlling the subsidiaries
(1) Explanation of changes in the share of owners' equity in subsidiary
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(2) Impact of the transaction on minority interests and owners' equity attributable to the parent company
None
(1) Significant joint ventures or associates
None
(2) Key financial information of significant joint ventures
None
(3) Key financial information of significant associates
None
(4) Summarized financial insignificant of unimportant joint ventures and associates
In RMB
Ending balance/amount incurred in Beginning balance/amount incurred
the current period in previous period
Joint ventures Associated enterprise
Total book value of investment 100,825,762.08 104,274,952.84
Total of the following items calculated
by shareholding ratio
- Net profit -3,449,190.76 -3,779,842.71
Other comprehensive income 0.00 0.00
Total comprehensive income -3,449,190.76 -3,779,842.71
Associated enterprise
Total book value of investment 3,204,891.81 3,308,634.07
Total of the following items calculated
by shareholding ratio
- Net profit 137,757.74 134,243.64
Other comprehensive income 0.00 0.00
Total comprehensive income 137,757.74 134,243.64
(5) Description of significant restrictions on the ability of joint ventures or associates to
transfer funds to the Company
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(6) Excess losses incurred by joint ventures or associates
None
(7) Unrecognized commitments related to investments in joint ventures
None
(8) Contingent liabilities related to joint ventures or investments in associates
None
None
statements
None
None
XI. Government grants
□Applicable Not applicable
Reasons for not receiving the expected amounts of government grants at the expected time
□Applicable Not applicable
Applicable □Not applicable
In RMB
Amount Amount
New Other
included in transferred to Related to
Accounting Beginning subsidies in changes in Ending
non- other income assets/
item balance the current the current balance
operating in the current income
period period
revenue in period
Deferred
income
Deferred Income -
income related
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Applicable □Not applicable
In RMB
Accounting item Amount in the current period Amount in the previous period
Other income 9,908,067.72 8,700,501.44
XII. Risks associated with financial instruments
The Group's main financial instruments include monetary funds, financial assets held for trading, notes receivable,
accounts receivable, receivables financing, other receivables, other equity instrument investments, short-term
borrowings, derivative financial liabilities, notes payable, accounts payable, other payables, other current liabilities and
long-term borrowings, etc. At the end of the period, the financial instruments held by the Group are as follows, and
the details are described in "Section 8 VII. Notes to Consolidated Financial Statements".. The risks associated with
these financial instruments and the risk management policies adopted by the Group to reduce these risks are as
follows. The Group's management manages and monitors these exposures to ensure that the risks are controlled
within certain limits.
Unit: RMB
Rewards for the key management personnel Items Ending balance Beginning balance
Financial assets
Measured at fair value, with its changes included in
current profits and losses
Transactional financial assets 748,398,696.32 736,341,286.18
Measured at fair value, with its changes included in other
comprehensive income
Financings receivable 1,507,659.34 22,584,820.72
Investment in other equity instruments 159,261,600.00 159,261,600.00
Measured in amortized cost
Monetary funds 517,854,162.69 449,964,450.38
Notes receivable 33,936,675.37 85,980,246.52
Other receivable 4,783,576.95 4,324,973.02
Financial liabilities
Measured at fair value, with its changes included in current
profits and losses
Derivative financial liabilities 572,148.11 4,071,800.19
Measured in amortized cost
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Accounts payable 479,599,097.76 344,656,835.89
Other payables 142,982,024.31 159,826,234.73
Other current liabilities 33,936,675.37 53,001,736.07
Long-term loans 303,207,141.75 309,751,163.39
The Group uses sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes in risk variables on current profits and losses and shareholders' equity. Because any risk variable rarely
changes in isolation, and the correlation between variables will have a great impact on the final amount of a risk
variable change, the following contents are carried out under the assumption that each variable change is independent.
year
The Group's goal in risk management is to strike a proper balance between risks and benefits, reduce the
negative impact of risks on the Group's operating performance to the lowest level, and maximize the interests of
shareholders and other equity investors. Based on this risk management objective, the basic strategy of the Group's
risk management is to identify and analyze various risks faced by the Group, establish an appropriate risk tolerance
bottom line and conduct risk management, and timely and reliably supervise various risks to control risks within a
limited scope.
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreign
exchange risks are mainly related to US dollars, Japanese yen, Hong Kong dollars and euros. Except for some import
purchases and export sales of the Group's companies located in Chinese mainland which are mainly settled in US
dollars, Japanese yen, Hong Kong dollars and Euros, other major business activities of the Group are settled in RMB.
As of June 30, 2026, except for the foreign currency monetary items described in "Section VIII VII. Notes to the
items of the consolidated financial statements", the assets and liabilities of the Group are all denominated in RMB. The
foreign exchange risks arising from the assets and liabilities with foreign currency balances (converted into RMB)
described in the table below may have an impact on the Group's operating results.
Unit: RMB
Ending balance
Rewards for the key management personnel Items
Assets Liabilities
USD 163,867,025.91 25,640,082.43
Yen 160,935,516.80 234,536,627.30
HKD 933,439.79 154,325.07
Subtotal 325,735,982.50 260,331,034.80
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk. At
present, the Group has not taken any measures to avoid foreign exchange risks.
Sensitivity analysis of foreign exchange risk
With other variables unchanged, the pre-tax impact of reasonable changes in exchange rates on the current profit
or loss and shareholders' equity is as follows:
Unit: RMB
Amount in the current period
Rewards for the key management personnel
Interest rate change
Items Impact on Impact on shareholders'
profits equity
Appreciation of RMB by
All foreign currencies 3,270,247.39 3,270,247.39
Depreciation of RMB by
All foreign currencies -3,270,247.39 -3,270,247.39
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainly
related to bank loans with floating interest rate. The Group continues to pay close attention to the impact of interest
rate changes on the Group's interest rate risk. The Group's policy is to maintain floating interest rates on these loans,
and there is no interest rate swap arrangement at present.
Sensitivity analysis of interest rate risk:
With other variables unchanged, the pre-tax impact of reasonable changes in interest rates on the current profit or
loss and shareholders' equity is as follows:
Unit: RMB
Amount in the current period
Rewards for the key management personnel Interest rate
Items change Impact on Impact on shareholders'
profits equity
Floating-rate loan Increase by 1% -3,029,799.61 -3,029,799.61
Floating-rate loan Decrease by 1% 3,029,799.61
As of June 30, 2026, the maximum credit risk exposure that may cause financial losses to the Group mainly
comes from the losses of the Group's financial assets due to the failure of the other party to the contract to perform its
obligations, including: monetary funds, financial assets held for trading, notes receivable, accounts receivable,
receivables financing and other receivables. On the balance sheet date, the book value of the Group's financial assets
has represented its maximum credit risk exposure.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
In order to reduce the credit risk, the Group arranges special personnel to determine the credit limit, conduct credit
approval and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue
debts. In addition, the Group reviews the recovery of financial assets on each balance sheet date to ensure that
sufficient credit loss provision has been made for relevant financial assets. Therefore, the management of the Group
believes that the credit risk assumed by the Group has been greatly reduced.
The Group's monetary funds are deposited in banks with high credit ratings, so the monetary funds only have low
credit risk.
As of June 30, 2026, the balance of accounts receivable from the top five customers of the Group was RMB
no other significant credit risk exposure concentrated in a single financial asset or financial asset portfolio with similar
characteristics.
When managing liquidity risk, the Group maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Group's business needs and reduce the impact of cash flow fluctuations.
The management of the Group monitors the use of bank loans and ensures compliance with the loan agreement.
As at June 30, 2026, the unused comprehensive bank credit line of the Group was RMB 1,334,982,200.
The Group's financial liabilities held are presented as follows based on the maturity of undiscounted remaining
contractual obligations:
Unit: RMB
Rewards for the key management More than 5
Within 1 year 1-5 years Tota
personnel Items years
Accounts payable 479,599,097.76 479,599,097.76
Other payables 142,982,024.31 142,982,024.31
Other current liabilities 33,936,675.37 33,936,675.37
Long-term loans 67,507,015.15 249,145,543.53 316,652,558.68
Derivative financial liabilities 572,148.11 572,148.11
(1) The Company conducts hedging business for risk management
Applicable □Not applicable
Corresponding Risk Qualitative Economic Expected Impact of
Item Management and Relationship Achievement Corresponding
Strategies and Quantitative between of Risk Hedging
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Objectives Information on Hedged Items Management Activities on
Hedged Risks and Relevant Objectives Risk Exposure
Hedging
Instruments
By conducting
To hedge the hedging
foreign- exchange risk business, the
Exchange- rate
of foreign- currency Foreign- excha hedging
fluctuations
liabilities arising from nge forward function of the
give rise to
the Company’s and option derivatives
Foreign corresponding Risk- managem
raw- material contracts are market can be
Exchang exchange gains ent objectives
purchases and signed to fully utilised to
e Rate and losses on are expected
prevent adverse mitigate mitigate the
Risk the Company’s to be achieved.
impacts of significant foreign- exchan impact of
foreign- curren
exchange- rate ge market substantial
cy liabilities
fluctuations on the risks. exchange- rate
held.
Company’s fluctuations on
operations. the Company’s
operations.
(2) The Company conducts hedging business for risk management, and is expected to achieve risk
management objectives but does not apply hedging accounting
Applicable □Not applicable
Item Reasons for Not Applying Hedge Accounting Impact on Financial Statements
The Company carries out foreign- exchange
Derivative financial liabilities of RMB
Foreign- Exch hedging activities, yet the qualifying
ange Forward conditions for applying Accounting Standard
change gain or loss of - RMB 572,148.11;
Contracts for Business Enterprises No.24 — Hedge
investment loss of RMB 4,334,736.33.
Accounting are not satisfied.
(1) Classification of transfer methods
Applicable □Not applicable
In RMB
The basis for
The nature of the The amount of
Derecognition determining the
Transfer method transferred financial financial assets
information situation of
assets transferred
derecognition
Since the credit risk
and deferred
Outstanding banker's payment risk of
Transfer by acceptance bill that banker's acceptance
endorsement is classified as bill in financings
financings receivable receivable are very
small, and the
interest rate risk
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
related to the bill has
been transferred to
the bank, it can be
determined that the
main risks and
rewards on the
ownership of the
note have been
transferred, so the
recognition is
derecognized.
Unexpired banker's
Transfer by acceptance bill Not eligible for
endorsement classified as bills derecognition
receivable
Tota 76,170,773.15
(2) Financial assets derecognition due to transfer
Applicable □Not applicable
In RMB
Rewards for the key
Method for the financial The amount of the financial Gains or losses related to
management personnel
assets transferred asset derecognized derecognition
Items
Financings receivable Transfer by endorsement 42,234,097.78 0.00
Total 42,234,097.78 0.00
(3) Continued involvement in the transfer of financial assets
Applicable □Not applicable
In RMB
Rewards for the key Amount of assets resulting Amount of liability arising
management personnel Asset transfer method from continued from continued
Items involvement involvement
Notes receivable Transfer by endorsement 33,936,675.37 33,936,675.37
Total 33,936,675.37 33,936,675.37
XIII. Disclosure of fair value
In RMB
Fair value as at the end of the period
Rewards for the key
management Fair value Fair value Fair value
personnel Items measurement of measurement of measurement of Tota
Level 1 Level 2 Level 3
I. Continuous
-- -- -- --
measurement of fair
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
value
(I) Trading financial
assets
measured at fair value
through current profit
or loss
(III) Investments in
other equity 0.00 0.00 159,261,600.00 159,261,600.00
instruments
(VI) Receivable
financing
Total assets
continuously measured 0.00 748,398,696.32 160,769,259.34 909,167,955.66
at fair value
(VI) Financial liabilities
held for trading
Derivative financial
liabilities
Total liabilities
constantly measured at 0.00 572,148.11 0.00 572,148.11
fair value
II. Measurement at fair
value not on a going -- -- -- --
concern
going and non-going concern
None
and non-sustainable items measured on the basis of fair value of level 2
Rewards for the key management personnel Ending Valuation
Input value
Items Fair value technique
Discounted cash
Transactional financial assets 748,398,696.32 Expected yield
flow technique
The contracted
delivery exchange
rate under forward
foreign exchange
Discounted cash
Derivative financial liabilities 572,148.11 contracts and the
flow technique
market forward
exchange rate as of
the balance sheet
date
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
techniques used, and the qualitative and quantitative information of important parameters
Ending
Rewards for the key management personnel
Valuation technique Input value
Items
Fair value
Discounted cash
Financings receivable 1,507,659.34 Discount rate
flow technique
Comparison of listed P/B ratio of similar listed
companies companies
Comparable income
Investment in other equity instruments 159,261,600.00 Market price
method
Statement
Book balance
adjustment method
analysis on the sensitivity of the unobservable parameters of sustainable and non-sustainable
items measured on the basis of fair value of tier three
None
current period and policies for determining the time of conversion
None
None
Financial assets and liabilities not measured at fair value mainly include: monetary funds, notes receivable,
accounts receivable, other receivables, notes payable, accounts payable, other payables, other current liabilities and
long-term borrowings, etc.
The management of the Group believes that the book values of financial assets and financial liabilities measured
in amortized cost in the financial statements are close to their fair values.
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
XIV. Related parties and related party transactions
Parent
Parent
company's
Name of parent Place of Place of company's voting
Business nature shareholding
company registration registration rights percentage
percentage in
in the Company
the Company
Shenzhen Building, investments, real
Investment Shennan Road, estate 46.21% 46.21%
Holdings Co., Ltd Futian District, development,
Shenzhen etc.
Parent company
The parent company of the Company is a wholly state-owned company approved and authorized by the
Shenzhen Municipal Government, which exercises the functions of the investor in accordance with the law for the
state-owned enterprises within the authorized scope.
The ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission of
Shenzhen Municipal People's Government.
Other explanations:
During the reporting period, the registered capital of the parent company has not changed.
See Note 10 Rights and interests in other entities for details of the subsidiary of the Company.
See Note 11. Long-term equity investment for details of important joint ventures or associates of the Company.
Joint ventures and associates involved in the related-party transactions with the Company in the Current Period,
or leading to balance due to the related party transaction they had with the Company in previous periods:
Name of joint venture or associates Relationship with the Company
A joint venture of the Company, whose vice chairman is
Shenzhen Guanhua Printing & Dyeing Co., Ltd.
appointed by the Group
An associate of the Company, whose chairman and
Shenzhen Changlianfa Printing and dyeing Company
directors are appointed by the Group
Other explanations
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Relationship between other related parties with the
Other related parties
COOEC
The Company's shareholding company and the chairman
Shenzhen Xinfang Knitting Co., Ltd.
of the company are the employees of the Group
The Company's shareholding company and the chairman
Shenzhen Dailishi Underwear Co., Ltd.
of the company are the employees of the Group
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Shentou Property Development Co., Ltd
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen SGE Longyan Energy Technology Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Guoren P&C Insurance Co., Ltd. Shenzhen Branch
the parent company of the Company
Shenzhen Talent Service Center (Shenzhen Talent A subsidiary of Shenzhen Investment Holdings Limited,
Market) the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Property Management Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Cultural Enterprise Development Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Investment Holdings Development Co., Ltd.
the parent company of the Company
Shenzhen Investment Holdings Digital Technology Co., A subsidiary of Shenzhen Investment Holdings Limited,
Ltd. the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Legal Training Center Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Leaguer Education Co., Ltd.
the parent company of the Company
Minority shareholder of the Company's subsidiary SAPO
Hengmei Optoelectronics Co., Ltd Photoelectric; one of the directors of the Company is a
director of SAPO Photoelectric
One of the directors of the Company is a director of
Xinmei Fontana Holding (Hong Kong) Limited
SAPO Photoelectric
Minority shareholder of the Company's subsidiary SAPO
Haosheng Hengxin (Wuxi) Materials Co., Ltd. Photoelectric; one of the directors of the Company is a
director of SAPO Photoelectric
One of the directors of the Company is a director of
Kunshan Xinmei Optical Technology Co., Ltd.
SAPO Photoelectric
A subsidiary of a minority shareholder of SAPO
Fuzhou Hengmei Optoelectronics Co., Ltd.
Photoelectric, a subsidiary of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Security Service Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Environmental Technology Group Co., Ltd.
the parent company of the Company
A subsidiary of Shenzhen Investment Holdings Limited,
Shenzhen Digital Talent Technology Co., Ltd.
the parent company of the Company
Shenzhen Talent Recruitment International (Group) Co., A subsidiary of Shenzhen Investment Holdings Limited,
Ltd. the parent company of the Company
Wuzhou Guest House Operation Branch of Shenzhen A subsidiary of Shenzhen Investment Holdings Limited,
Wuzhou International Hotel Management Group Co., Ltd. the parent company of the Company
Shenzhen Penglao Human Resources Management Co., A subsidiary of Shenzhen Investment Holdings Limited,
Ltd. the parent company of the Company
Other explanations
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(1) Related party transactions on purchase and sales of goods, rendering and receipt of
services
Purchase of goods/receipt of services
In RMB
Whether the
Approved
Content of related Amount in the transaction Amount in the
Related party transaction
party transaction current period quota is previous period
quota
exceeded
Hengmei
Optoelectronics Material procurement 1,966,166.94 24,500,000.00 No 0.00
Co., Ltd
Hengmei
Technical service
Optoelectronics 2,177,500.00 3,500,000.00 No 0.00
fees
Co., Ltd
Xinmei
Fontana
Material procurement 64,175,034.44 No 0.00
Holding (Hong
Kong) Limited
Kunshan
Xinmei Optical
Material procurement 48,163,716.84 No 0.00
Technology
Co., Ltd.
Shenzhen SGE
Longyan
Energy Purchasing electricity 519,578.65 469,327.43
Technology
Co., Ltd.
Shenzhen
Lease fee / property
Investment
management fee /
Holdings 619,808.60 219,288.00
utilities / interest
Development
expense
Co., Ltd.
Shenzhen
Security
Security service fee 1,704,653.42 0.00
Service Co.,
Ltd.
Shenzhen
Environmental Hazardous waste
Technology treatment service
Group Co., Ltd.
Shenzhen
Digital Talent
Consulting fees 11,323.93 0.00
Technology
Co., Ltd.
Shenzhen
Legal Training
Training expenses 0.00 680.00
Center Co.,
Ltd.
Guoren P&C
Insurance Co.,
Insurance premiums 131,209.23 100,377.15
Ltd. Shenzhen
Branch
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Shenzhen
Talent Service
Outsourcing service
Center 33,163.30 31,318.11
fee
(Shenzhen
Talent Market)
Shenzhen
Property Property
Management management fee
Co., Ltd.
Shenzhen
Software/office
Investment
expenses/information
Holdings Digital 176,230.80 26,687.76
construction
Technology
expenses
Co., Ltd.
Shenzhen
Talent
Recruitment
Recruitment fees 300.00 0.00
International
(Group) Co.,
Ltd.
Wuzhou Guest
House
Operation
Branch of
Shenzhen
Employee welfare 10,472.00 0.00
Wuzhou
International
Hotel
Management
Group Co., Ltd.
Shenzhen
Penglao
Human
Labor costs 80,883.81 0.00
Resources
Management
Co., Ltd.
Shenzhen
Leaguer
Training expenses 0.00 6,454.70
Education Co.,
Ltd.
Shenzhen
Cultural Purchase of
Enterprise computers and 0.00 17,196.00
Development photocopiers
Co., Ltd.
Shenzhen
Guanhua
Printing & Interest expenses 0.00 2,831.38
Dyeing Co.,
Ltd.
Sales of goods/ rendering of services
In RMB
Content of related party Amount in the current Amount in the previous
Related party
transaction period period
Fuzhou Hengmei Sale of raw materials and
Optoelectronics Co., Ltd. processing fees
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Haosheng Hengxin (Wuxi)
Processing fees 6,171,323.80 0.00
Materials Co., Ltd.
Hengmei Optoelectronics
Sale of raw materials 633,125.22 0.00
Co., Ltd
Shenzhen Environmental
Technology Group Co., Sale of waste 19,719.91 0.00
Ltd.
Shenzhen Changlianfa
Printing and dyeing House leasing 5,714.29 0.00
Company
Shenzhen Xinfang Knitting
House leasing 5,714.29 0.00
Co., Ltd.
(2) Management on commission/contract and commissioned management/contracting-out
None
(3) Related party leases
The COOEC acted as the lessor:
In RMB
Lease income recognized Lease income recognized
Lessee Type of leased asset
in this period in previous period
Shenzhen Xinfang Knitting
Houses and Building 5,714.29 0.00
Co., Ltd.
Shenzhen Changlianfa
Printing and dyeing Houses and Building 5,714.29 0.00
Company
The COOEC acted as lessee:
In RMB
Rental costs for
Variable lease
short-term leases
payments not Interest expense
and low-value
included in the on lease Increase in right-
asset leases for Paid rents
measurement of liabilities of-use assets
Type simplified
lease liabilities (if assumed
of processing (if
Lessor applicable)
leased applicable)
asset Amoun Amoun Amoun Amoun Amoun
Amoun Amoun Amoun Amoun Amoun
t in the t in the t in the t in the t in the
t in the t in the t in the t in the t in the
previo previo previo previo previo
current current current current current
us us us us us
period period period period period
period period period period period
Shenz
hen
Invest
ment House
Holdin s and 382,36 63,486 1,733,
gs Buildin 8.47 .69 358.64
Develo g
pment
Co.,
Ltd.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(4) Related party guarantees
None
(5) Information on inter-bank lending of capital of related parties
None
(6) Asset transfer and debt restructuring of related parties
None
(7) Remuneration of key officers
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Rewards for the key management
personnel
(8) Other related party transactions
None
(1) Receivables
In RMB
Ending balance Beginning balance
Name Related party Bad debt Bad debt
Balance of Book Balance of Book
provisions provisions
Haosheng
Account Hengxin (Wuxi)
receivable Materials Co.,
Ltd.
Fuzhou Hengmei
Account
Optoelectronics 0.00 0.00 1,028,460.87 848,850.89
receivable
Co., Ltd.
Hengmei
Account
Optoelectronics 0.00 0.00 652,754.27 538,757.54
receivable
Co., Ltd
Shenzhen
Shentou
Account
Property 6,027.00 1,808.10 6,027.00 1,808.10
receivable
Development
Co., Ltd
Prepayment Xinmei Fontana 5,371,247.31 0.00 0.00 0.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Holding (Hong
Kong) Limited
Kunshan Xinmei
Optical
Prepayment 13,196,175.38 0.00 4,745,325.94 0.00
Technology Co.,
Ltd.
Shenzhen
Investment
Prepayment Holdings Digital 0.00 0.00 96,500.00 0.00
Technology Co.,
Ltd.
Shenzhen
Investment
Prepayment Holdings 0.00 0.00 53,118.73 0.00
Development
Co., Ltd.
Guoren P&C
Insurance Co.,
Prepayment 148,000.00 0.00 0.00 0.00
Ltd. Shenzhen
Branch
Shenzhen
Dailishi
Other receivable 550,000.00 27,500.00 1,100,000.00 55,000.00
Underwear Co.,
Ltd.
Shenzhen
Investment
Other receivable Holdings 224,354.56 11,631.14 106,237.44 5,311.87
Development
Co., Ltd.
(2) Payables
In RMB
Name Related party Ending book balance Beginning book balance
Xinmei Fontana Holding
Accounts payable 0.00 14,853,562.10
(Hong Kong) Limited
Fuzhou Hengmei
Accounts payable 0.00 1,370,344.95
Optoelectronics Co., Ltd.
Hengmei Optoelectronics
Accounts payable 2,177,500.00 633,118.20
Co., Ltd
Shenzhen Environmental
Accounts payable Technology Group Co., 301,129.84 0.00
Ltd.
Shenzhen Security Service
Accounts payable 328,240.00 0.00
Co., Ltd.
Shenzhen Guanhua
Other payables 3,806,454.17 3,806,454.17
Printing & Dyeing Co., Ltd.
Shenzhen Changlianfa
Other payables Printing and dyeing 2,281,299.95 2,281,299.95
Company
Shenzhen Xinfang Knitting
Other payables 244,789.85 244,789.85
Co., Ltd.
Shenzhen Investment
Other payables Holdings Digital 0.00 51,840.00
Technology Co., Ltd.
Other payables Shenzhen Investment 0.00 18,417.00
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Holdings Development Co.,
Ltd.
Shenzhen Cultural
Other payables Enterprise Development 0.00 6,536.00
Co., Ltd.
Shenzhen Security Service
Other payables 20,000.00 0.00
Co., Ltd.
None
None
XV. Commitments and contingencies
Significant commitments on the balance sheet date
In RMB
Rewards for the key management
Ending amount Beginning amount
personnel Items
Contracted but not recognized in the
financial statements
Commitment on construction and purchase
of long-lived assets
Large amount contract 389,285,200.00 0.00
(1) Significant contingencies on the balance sheet date
As of June 30, 2026, the Group had no contingencies such as pending litigations and external guarantees to be
disclosed.
(2) Notes shall be given even if there were no significant contingencies required to be
disclosed by the Company
The Company has no significant contingencies required to be disclosed.
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
XVI. Events after the balance sheet date
None
None
None
To further establish and improve the Company’s long- term incentive mechanism, attract and retain high- caliber
talents, fully motivate the core team of the Company, effectively align the interests of shareholders, the Company and
its employees, and enable all parties to focus on the long- term development of the Company, under the premise of
fully safeguarding shareholders’ interests and in accordance with the principle of matching returns with contributions,
the Company convened the 4th meeting of the 9th Board of Directors on 18?August?2026. The meeting reviewed and
approved the Proposal on the Company’s 2026 Stock Option Incentive Plan (Draft) and its Summary, the Proposal on
the Administration Measures for Performance Assessment under the Company’s 2026 Stock Option Incentive Plan,
and the Proposal on Authorising the Board of Directors by the Shareholders’ Meeting to Handle Matters in Connection
with the Company’s 2026 Stock Option Incentive Plan. For details, please refer to the Company’s 2026 Stock Option
Incentive Plan (Draft) and Summary of the 2026 Stock Option Incentive Plan (Draft) published on CNINFO
(http://www.cninfo.com.cn) on 19?August?2026.
XVII.Other significant events
None
None
(1) Exchange of non-monetary assets
None
(2) Replacement of other assets
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
None
None
(1) Determination basis and accounting policies for reporting segments
According to the internal organizational structure, management requirements and internal reporting system of the
Group, the Group's operating business is divided into two operating segments. The management of the Group
regularly evaluates the operating results of these segments to decide on the allocation of resources to them and
evaluate their performance. On the basis of operating segments, the Group has identified the following three reporting
segments: polarizer business, property leasing business and textile business.
Information on segment reporting is disclosed according to the accounting policies and measurement standards
adopted by each segment when reporting to the management, and these measurement bases are consistent with the
accounting and measurement bases when preparing the financial statements.
(2) Financial information of reporting segments
In RMB
Rewards for the key
management personnel Polarizer Property leasing Inter-segment offset Tota
Items
Operating income:
External transaction
income
Inter-segment
transaction income
Total operating income
of segment
Operating expenses
(note)
Operating profit 56,493,656.82 28,879,161.88 -5,469,393.62 79,903,425.08
Net Profit 58,709,202.34 21,957,475.84 -5,451,077.21 75,215,600.97
Total assets of segment 4,323,911,225.00 3,183,397,959.65 -1,957,076,749.55 5,550,232,435.10
Total liabilities of
segment
(3) If the Company has no reporting segments, or cannot disclose the total assets and total
liabilities of each reporting segment, the reasons shall be stated.
None
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
(4) Other notes
Note: This item includes operating costs, taxes and surcharges, management costs, R&D expenses, sales
expenses and financial expenses.
In light of the current operating status of Shenzhen Xieli Automobile Enterprise Co., Ltd. (hereinafter referred to as
"Shenzhen Xieli"), the Company filed an application with the People’s Court of Luohu District, Shenzhen (hereinafter
referred to as the "Court") for compulsory liquidation of Shenzhen Xieli on 7?January?2026. A hearing for this case was
held at the Luohu Court on 19?May, and the case is still under the compulsory liquidation procedure pending a ruling by
the Luohu Court.
None
XVIII. Notes to the main items of the parent company's financial statements
(1) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 7,710,115.69 8,710,793.24
Over 3 years 0.00 118,603.99
Including：4 to 5 years 0.00 118,603.99
Total 7,710,115.69 8,829,397.23
(2) Disclosure by provision method for bad debts
In RMB
Ending balance Beginning balance
Bad debt Bad debt
Categor Balance of Book Balance of Book
provisions Book provisions Book
y
Proporti Provisio balance Proporti Provisio balance
Amount Amount Amount Amount
on n ratio on n ratio
Inclu
ding:
Account
s
receiva
ble with 1.50% 1.30%
provisio
n for
bad
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
debts
on a
combin
ation
basis
Inclu
ding:
Total 1.50% 1.30%
Name of the category for which bad debt provision is accrued by portfolio: Accrual of bad debt provision based on the
simplified model of expected credit losses
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Provision for bad debts
based on simplified 7,710,115.69 115,450.32 1.50%
expected credit loss model
Total 7,710,115.69 115,450.32
Explanation on the basis for determining the combination:
Group customers are mainly leasing customers, and the provision for credit impairment is made according to the aging
method combination.
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses:
□Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Beginning Ending
Category Recovery or
balance Accrual Write-off Others balance
reversal
Bad debt
provisions
Total 115,022.89 427.43 0.00 0.00 0.00 115,450.32
(4).Actual write-off of accounts receivable for the current period
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
In RMB
Unit name Ending balance Ending balance Ending balances Ratio to the total Ending balance
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
of accounts of contract of accounts amount of of provision for
receivable assets receivable and ending balance bad debts of
contract assets of accounts accounts
receivable and receivable and
contract assets provision for
(%) impairment of
contract assets
Customer1 5,708,767.73 0.00 5,708,767.73 74.04% 75,368.70
Customer2 1,122,801.92 0.00 1,122,801.92 14.56% 0.00
Customer3 189,195.98 0.00 189,195.98 2.45% 9,459.80
Customer4 81,020.22 0.00 81,020.22 1.05% 0.00
Customer5 51,336.46 0.00 51,336.46 0.67% 2,566.82
Total 7,153,122.31 0.00 7,153,122.31 92.77% 87,395.32
In RMB
Rewards for the key management
Ending balance Beginning balance
personnel Items
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivable 1,549,862.15 2,014,545.65
Total 1,549,862.15 2,014,545.65
(1) Other receivables
In RMB
Payment nature Ending book balance Beginning book balance
Related party transactions within the
consolidation scope
External unit transactions 14,905,577.41 15,455,577.41
Deposit and security deposit 10,000.00 10,000.00
Others 1,870,310.70 1,812,494.20
Total 42,799,929.21 43,392,112.71
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 1,476,257.20 1,973,476.50
Over 3 years 27,544,614.28 27,509,236.20
Include：3 to 4 years 240,019.17 2,204,641.09
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
More than 5 years 20,304,595.11 15,279,395.10
Total 42,799,929.21 43,392,112.71
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Account
receivable
withdrawal
bad debt
provision by
portfolio
Including:
Provisio 42,799,929.21 100.00% 41,250,067.06 96.38% 1,549,862.15 43,392,112.71 100.00% 41,377,567.06 95.36% 2,014,545.65
Total 42,799,929.21 100.00% 41,250,067.06 96.38% 1,549,862.15 43,392,112.71 100.00% 41,377,567.06 95.36% 2,014,545.65
Name of category of provision for bad debts on a portfolio basis: Other receivables with provision for bad debts on a
portfolio basis by credit risk characteristics
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Other receivables for which
credit loss provision is
made according to the 42,799,929.21 41,250,067.06 96.38%
combination of credit risk
characteristics
Total 42,799,929.21 41,250,067.06
Explanation on the basis for determining the combination:
Other receivables with provision for bad debts based on credit risk characteristics combination
The provision for bad debts made according to the general model of expected credit losses
In RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Bad debt provisions Expected credit Tota
throughout the throughout the
losses over the
duration (without duration (with credit
next 12 months
credit loss) impairment)
Balance as of January
Balance as at January
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
the current period
——Transfer to stage
III
Provision for the
current period
Reversal in this period -55,000.00 0.00 -100,000.00 -155,000.00
Balance as of June 30,
Basis for division of each stage and ratio of provision for bad debts
None
Changes in the book balance of provision for loss with significant changes in the current period
□Applicable Not applicable
Provision for bad debts for the current period:
In RMB
Changes in the current period
Beginning Ending
Category Recovery or Transfer or
balance Accrual Others balance
reversal write off
Bad debt
provisions
Total 41,377,567.06 27,500.00 -155,000.00 0.00 0.00 41,250,067.06
None
There was no other receivables with actual write-off during the reporting period.
In RMB
Ratio to the total Balance of
The nature of the ending balance provision for bad
Unit name Ending balance Category
amount of other debts as at the
receivables end of the period
Transactions
years, 3-4 years,
Customer1 with related 26,014,041.10 60.78% 26,014,041.10
parties
than 5 years
Customer2 External unit More than 5
transactions years
Customer3 External unit More than 5
transactions years
Customer4 External unit More than 5
transactions years
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Customer5 More than 5
Others 592,420.00 1.38% 592,420.00
years
Total 40,813,801.07 95.36% 40,813,801.07
There was no other receivables due to centralized management of funds during the reporting period.
In RMB
Ending balance Beginning balance
Rewards for the
key management Withdrawn Withdrawn
personnel Items Balance of Book impairment Book balance Balance of Book impairment Book balance
provision provision
Investments in
subsidiaries
Investments in
associates and 104,030,653.89 0.00 104,030,653.89 107,583,586.91 0.00 107,583,586.91
joint ventures
Total 2,067,283,402.20 37,390,767.64 2,029,892,634.56 2,070,836,335.22 37,390,767.64 2,033,445,567.58
(1) Investment in subsidiaries
In RMB
Increase/decrease in this period Balance of
Beginning
Beginning provision for
balance of Withdrawal of Ending balance
Name balance (book Add Decreased impairment as
provision for impairment Others (book value)
value) investment investment at the end of
impairment provision
the period
SAPO
Photoelectric
Shenzhen Lisi
Industrial
Development
Co., Ltd.
Shenzhen
Beauty
Century 0.00 22,975,479.55 0.00 0.00 0.00 0.00 0.00 22,975,479.55
Garment Co.,
Ltd.
Shenzhen
Shenfang
Property 1,713,186.55 0.00 0.00 0.00 0.00 0.00 1,713,186.55 0.00
Management
Co., Ltd.
Shenzhen
Shenfang
Sungang
Property
Management
Co., Ltd.
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Total 1,925,861,980.67 37,390,767.64 0.00 0.00 0.00 0.00 1,925,861,980.67 37,390,767.64
(2) Investments in associates and joint ventures
In RMB
Increase/decrease in this period
Balance of
Beginning Equity method Cash
Beginning Adjustment of provision for
Investment balance of affirmative Other dividends or Withdrawal of Ending balance
balance (book Add Decreased other impairment
unit provision for profit and loss equity profits impairment Others (book value)
value) investment investment comprehensive as at the end
impairment on changes declared to provision
income of the period
investments be paid
I. Joint ventures
Shenzhen
Guanhua
Printing & 104,274,952.84 0.00 0.00 0.00 -3,449,190.76 0.00 0.00 0.00 0.00 0.00 100,825,762.08 0.00
Dyeing Co.,
Ltd.
Subtotal 104,274,952.84 0.00 0.00 0.00 -3,449,190.76 0.00 0.00 0.00 0.00 0.00 100,825,762.08 0.00
Shenzhen
Changlianfa
Printing and 3,308,634.07 0.00 0.00 0.00 137,757.74 0.00 0.00 -241,500.00 0.00 0.00 3,204,891.81 0.00
dyeing
Company
Subtotal 3,308,634.07 0.00 0.00 0.00 137,757.74 0.00 0.00 -241,500.00 0.00 0.00 3,204,891.81 0.00
Total 107,583,586.91 0.00 0.00 0.00 -3,311,433.02 0.00 0.00 -241,500.00 0.00 0.00 104,030,653.89 0.00
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
(3) Other notes
None
In RMB
Rewards for the key Amount in the current period Amount in the previous period
management
personnel Items Business income Business cost Business income Business cost
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Income from Main
Business
Other business 0.00 0.00 903,094.00 684,545.01
Total 37,217,931.31 5,231,095.08 38,597,362.56 5,734,623.16
Breakdown of operating revenue and operating costs:
In RMB
Property leasing Tota
Contract classification
Turnover Operation cost Turnover Operation cost
Business type 37,217,931.31 5,231,095.08 37,217,931.31 5,231,095.08
Including:
Property leasing 37,217,931.31 5,231,095.08 37,217,931.31 5,231,095.08
Classification by business area 37,217,931.31 5,231,095.08 37,217,931.31 5,231,095.08
Including:
Domestic 37,217,931.31 5,231,095.08 37,217,931.31 5,231,095.08
Total 37,217,931.31 5,231,095.08 37,217,931.31 5,231,095.08
Information related to performance obligations:
None
Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been signed but not
performed or not fully performed yet at the end of the reporting period is RMB 0.00, of which RMB 0.00 is expected to
be recognized as revenue in 2026, RMB0.00 is expected to be recognized in 2027, and RMB0.00 is expected to be
recognized in 2028.
In RMB
Rewards for the key management
Amount in the current period Amount in the previous period
personnel Items
Income from long-term equity
investment measured by adopting 5,200,000.00 4,200,000.00
the cost method
Income from long-term equity
investment measured by adopting -3,311,433.02 -3,645,599.07
the equity method
Investment income of trading
financial assets during the holding 2,462,280.90 3,345,206.16
period
Dividend income from investments in
other equity instrument during the 750,000.00 748,000.00
holding period
Total 5,100,847.88 4,647,607.09
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
None
XIX. Supplementary information
Applicable □Not applicable
In RMB
Rewards for the key management
Amount Description
personnel Items
Profit or loss from disposal of non- Mainly the losses on write-off of fixed
-21,479.04
current assets assets
Government grants included in profit
and loss of the current period (except
for government subsidies that are
closely related to the Company's
normal business operation, comply 690,798.69 Mainly government subsidies.
with national policies and are enjoyed
in accordance with defined criteria,
and have a continuing impact on the
Company's profit or loss)
Losses/gains from changes of fair
values occurred in holding trading
financial assets and trading financial
Mainly gains and losses from
liabilities, and investment income
changes in fair value arising from the
obtaining from the disposal of trading
financial assets, trading financial
assets and derivative financial
liability and financial assets available-
liabilities.
for-sale, excluded effective hedging
business relevant with normal
operations of the Company
Reversal of the account receivable
depreciation reserves subject to 5,003,582.71
separate impairment test
Other non-business income and Mainly the litigation compensation
-577,522.61
expenditures other than the above expenses.
Less :Influenced amount of income
tax
Influenced amount of minor
-43,356.09
shareholders’ equity (after tax)
Total 6,883,112.36 --
Earnings per share
Profit of report period Weighted average ROE(%) Basic earning per Diluted gains per
share(Yuan/Share) share(Yuan/Share)
Net profit attributable to the 1.70% 0.1002 0.1002
Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co., Ltd.
Common stock
shareholders of Company.
Net profit attributable to the
Common stock
shareholders of Company 1.47% 0.0867 0.0867
after deducting of non-
recurring gain/loss.
Shenzhen Textile (Holding) Co., Ltd.
Board of Directors
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