Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2016
August 26, 2016
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
I. Important Notice, Table of Contents and Definitions
The Board of Directors，the Supervisory Committee, the directors, the supervisors, and expecutives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
All the directors attended the board meeting for reviewing the Semi-Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and the Mrs.Mu Linying, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the semi-report.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Data and Financial Indicators
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII.Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National Assets Regulatory
National Assets Regulatory Commission of Shenzhen Municipal
Commission of Shenzhen Municipal People's Refers to
People's Government
Government
The Controlling shareholder/ Shenzhen
Refers to Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
Shengbo Optoelectronic Refers to Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to 2016 Semi- Annual Report
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
II. Basic Information of the Company
I. Company Information
Stock abbreviation Shen Textile A ,Shen Textile B Stock code： 000045、200045
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳市纺织（集团）股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE （HOLDINGS） CO.,LTD
English abbreviation (If any) STHC
Legal Representative Zhu Jun
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Mo Xiayun
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com moxy@chinasthc.com
III.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2015 Annual Report.
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
said information can be found in the 2015 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2015.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
III. Summary of Accounting Data and Financial Indicators
I.Summary of accounting /Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□Yes √No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 552,157,585.56 620,993,333.48 -11.08%
Net profit attributable to the shareholders
-30,097,851.40 7,668,027.95 -492.51%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -32,378,678.35 -33,384,225.47 -3.01%
listed company（RMB）
Cash flow generated by business operation,
-39,316,195.34 4,293,128.00 -1,015.79%
net（RMB）
Basic earning per share(RMB/Share) -0.06 0.015 -500.00%
Diluted gains per
-0.06 0.015 -500.00%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) -1.40% 0.35% -1.75%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 2,860,439,753.13 2,969,394,978.70 -3.67%
Net assets attrilutable to shareholder of
2,142,462,266.47 2,174,569,545.55 -1.48%
listed company（RMB）
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
No difference .
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-20,770.93
for which assets impairment provision is made)
Govemment subsidies recognized in currentgain and
loss(excluding those closely related to the Company’s business 2,165,711.40
and granted under the state’s policies)
Other non-business income and expenditures other than the above 132,449.53
Less :Influenced amount of income tax -3,436.95
Total 2,280,826.95 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
IV. Report of the Board of Directors
I. General
The year-2016 is the first year of the \"13th Five-Year\", as well as is a crucial year for the company to upgrade
technology, improve management and expand scale. During the reporting period, firstly the company continuously
improved the operating ability of polarizer business which has been targeted, and improved the technology, raised
the production line speed, optimized the product structure and speeded up the R&D of new polarizer products and
the bringing in of new materials; secondly the company rolled out the work of introducing strategic investors for
the company’s subsidiary-Shengbo Optoelectronic Co.,Ltd, which aimed to solve the difficulties in the polarizer
business operating, while enriching and expanding the up-stream and down-stream industrial chain and boosting
up the overall competence of the polarizer business; thirdly, according to the 2016 key work arrangement of the
company, the company fully promoted the second phase construction of No.6 line project; fourthly the company
had strengthened the innovation management and cultivated the core team, realized the company’s sustainable and
healthy development.
During the reporting period, the company has achieved the operating income of RMB 552.1576 million, decreased
by 11.08% year on year, Total profit of RMB -25.8607 million, decreased by -202.72% year on year, Net profit of
RMB-30.0979 million , decreased by 492.51%. During the reporting period mainly due to the sale of available for
sale financial assets Net income significantly reduced compared with the same period last year, at the same time,
due to the sharp appreciation of Japanese yen, resulting in raw material costs and exchange losses increased
significantly over last year.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income
552,157,585.56 620,993,333.48 -11.08%
Operating cost 511,249,697.64 588,138,026.03 -13.07%
Sale expenses 4,516,009.63 5,010,699.03 -9.87%
Administrative expenses 46,124,255.12 45,057,284.86 2.37%
Due to the sharp
appreciation of Japanese
Financial expenses 8,972,817.56 -11,273,185.63 179.59% yen, a substantial
increase in foreign
exchange losses.
Due to the sale of stake
Income tax expenses 4,237,195.44 17,507,965.25 -75.80%
in Sino Great Wall Co.,
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
Ltd. over the same period
last year .
Due to the company
R&D investment 15,805,570.17 11,956,715.67 32.19% increased Research &
Develop investment.
Net cash flows from Due to customs duties,
-39,316,195.34 4,293,128.00 -1,015.79%
operating activities VAT margin increased.
Due to the investment in
Net cash flows from
33,062,688.27 -422,551,442.19 107.82% the recovery of part of
investing activities
the structured deposits.
Due to repayment
Net cash flows from
-78,059,653.87 -42,034,848.78 -85.70% maturing borrowings for
financing activities
this period.
Due to the investment in
Net increase in cash and
-83,369,088.81 -459,957,122.05 81.87% the recovery of part of
cash equivalents
the structured deposits.
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.Implementation of business plans disclosed in previous periods in this period.
According to the company's 2016 key work arrangements, the completion statuses of each work in the first half
year are as follows:
1. Continuously enhancing the operating capacity for the polarizer business
During the reporting period, firstly the company raised the production line speed, optimized the production
process and expanded the product structure to the large-size from small and medium size; secondly the company
adhered to the positive and active competitive strategy and the differentiated market sales strategy, newly
developed 48 inch, 49 inch, 55 inch TV polarizer which had got client authentication and further expanded the
market shares of the product; thirdly boosted up the efforts of R&D for getting independent intellectual property
rights, centering on the R&D of ultra-thin polarizer for IPS and the polarizer for OLED display and so forth many
of having high added-value products, also, carried out and tracked the work of introducing substitution materials
to many raw materials to reduce the product costs.
During the reporting period, the company applied for 6 patents (4 domestic utility model patents, 2 foreign utility
model patents), and was authorized with 6 patents (1 domestic invention patents, 5 domestic utility model patents).
At present, the company has applied for 66 patents, among them, there were 13 domestic invention patents, 1
foreign invention patent, 47 domestic utility model patents and 5 overseas utility model patents; the company was
authorized with 47 patents which included 5 domestic invention patents, 40 domestic utility model patents and 2
overseas utility model patents.
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Report 2016
2. Actively promoting the construction of the No. 6 line project
During the reporting period, based on No.6 line construction progress plan, the company has completed the open
tender and contract signing for the design and construction of the related engineering and the host equipment, as
well as completed the tender work on part of the public engineering, and the related project constructions are
under process.
3. The operating status of the property companies was steadily going up
During the reporting period, the property companies centered on the rental rate and the rate of capital return and
continued to carry out the improvement plan on the rental proceeds, with the unit rental price in the newly signed
leasing contracts all increased a certain extent. The inspection and acceptance of each item of Guanhua Building
was completed.
4. Openly introducing strategic investors and further enriching and extending the up
