Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2021
August 2021
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial StatementsStatement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
June 30,2021
In RMB
| Items | June 30,2021 | December 30,2020 |
| Current asset： | ||
| Monetary fund | 261,443,764.22 | 279,087,236.95 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 648,882,159.51 | 684,617,260.06 |
| Derivative financial assets | ||
| Note receivable | 5,231,381.74 | 16,813,657.28 |
| Account receivable | 538,927,936.19 | 547,310,217.90 |
| Financing of receivables | 50,548,060.18 | 102,051,314.08 |
| Prepayments | 70,098,948.11 | 16,902,516.39 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 108,479,055.45 | 5,265,002.71 |
| Including：Interest receivable | ||
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 576,173,756.68 | 480,847,581.44 |
| Contract assets | ||
| Assets held for sales |
| Non-current asset due within 1 year | ||
| Other current asset | 8,212,405.21 | 77,482,083.47 |
| Total of current assets | 2,267,997,467.29 | 2,210,376,870.28 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Creditor's right investment | ||
| Other creditor's right investment | ||
| Long-term receivable | ||
| Long term share equity investment | 132,674,080.11 | 147,929,137.23 |
| Other equity instruments investment | 189,268,802.32 | 190,607,427.54 |
| Other non-current financial assets | 28,500,000.00 | 30,650,943.40 |
| Real estate investment | 109,274,369.86 | 110,572,471.92 |
| Fixed assets | 745,921,085.85 | 790,183,905.38 |
| Construction in progress | 1,567,417,773.55 | 1,301,750,141.12 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 36,047,158.67 | 36,048,978.91 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 3,405,250.16 | 2,876,561.53 |
| Deferred income tax asset | 5,300,651.26 | 5,243,425.26 |
| Other non-current asset | 95,760,086.27 | 143,307,689.66 |
| Total of non-current assets | 2,913,569,258.05 | 2,759,170,681.95 |
| Total of assets | 5,181,566,725.34 | 4,969,547,552.23 |
| Current liabilities | ||
| Short-term loans | ||
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 3,982,302.62 | |
| Account payable | 279,982,992.61 | 329,468,601.90 |
| Advance receipts | 3,935,595.88 | 3,542,394.33 |
| Contract liabilities | 21,271.21 | 279,631.27 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 45,886,423.04 | 55,642,549.53 |
| Tax payable | 7,441,866.20 | 12,198,522.02 |
| Other account payable | 136,833,527.76 | 156,118,440.42 |
| Including：Interest payable | ||
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 478,083,979.32 | 557,250,139.47 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 544,588,606.07 | 343,100,174.35 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 107,233,810.75 | 110,740,322.21 |
| Deferred income tax liability | 58,807,010.27 | 59,141,666.58 |
| Other non-current liabilities | ||
| Total non-current liabilities | 710,629,427.09 | 512,982,163.14 |
| Total of liability | 1,188,713,406.41 | 1,070,232,302.61 |
| Owners’ equity |
| Share capital | 506,521,849.00 | 507,772,279.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,961,599,824.63 | 1,967,514,358.53 |
| Less：Shares in stock | 7,525,438.20 | |
| Other comprehensive income | 111,556,642.65 | 116,605,932.42 |
| Special reserve | ||
| Surplus reserves | 94,954,652.14 | 94,954,652.14 |
| Common risk provision | ||
| Retained profit | 148,319,809.42 | 86,912,390.50 |
| Total of owner’s equity belong to the parent company | 2,822,952,777.84 | 2,766,234,174.39 |
| Minority shareholders’ equity | 1,169,900,541.09 | 1,133,081,075.23 |
| Total of owners’ equity | 3,992,853,318.93 | 3,899,315,249.62 |
| Total of liabilities and owners’ equity | 5,181,566,725.34 | 4,969,547,552.23 |
Legal Representative: Zhang JianPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Zhu Jingjing
2.Parent Company Balance Sheet
In RMB
| Items | June 30,2021 | December 31,2020 |
| Current asset： | ||
| Monetary fund | 79,297,562.76 | 113,560,327.21 |
| Transactional financial assets | 568,698,848.39 | 514,277,000.82 |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 2,717,606.50 | 1,461,400.20 |
| Financing of receivables | ||
| Prepayments | 261,750.00 | 18,706.17 |
| Other account receivable | 9,932,178.00 | 7,450,934.40 |
| Including：Interest receivable |
| Dividend receivable | ||
| Inventories | 20,509.00 | 8,808.00 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | ||
| Total of current assets | 660,928,454.65 | 636,777,176.80 |
| Non-current assets： | ||
| Creditor's right investment | ||
| Other creditor's right investment | ||
| Long-term receivable | ||
| Long term share equity investment | 2,088,722,286.20 | 2,103,977,343.32 |
| Other equity instruments investment | 175,803,808.23 | 177,142,433.45 |
| Other non-current financial assets | ||
| Real estate investment | 100,788,551.32 | 101,644,481.93 |
| Fixed assets | 21,059,700.06 | 21,876,099.34 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 419,760.82 | 492,923.62 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 5,160,286.97 | 5,097,360.00 |
| Other non-current asset | 95,760,086.27 | 96,871,196.43 |
| Total of non-current assets | 2,487,714,479.87 | 2,507,101,838.09 |
| Total of assets | 3,148,642,934.52 | 3,143,879,014.89 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 411,743.57 | 411,743.57 |
| Advance receipts | 2,875,936.58 | 2,875,936.58 |
| Contract liabilities | ||
| Employees’ wage payable | 13,188,552.87 | 14,824,723.81 |
| Tax payable | 4,841,865.28 | 11,497,591.21 |
| Other account payable | 110,541,577.50 | 95,023,378.12 |
| Including：Interest payable | ||
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 131,859,675.80 | 124,633,373.29 |
| Non-current liabilities： | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 450,000.00 | 500,000.00 |
| Deferred income tax liability | 55,815,761.75 | 56,150,418.06 |
| Other non-current liabilities | ||
| Total non-current liabilities | 56,265,761.75 | 56,650,418.06 |
| Total of liability | 188,125,437.55 | 181,283,791.35 |
| Owners’ equity | ||
| Share capital | 506,521,849.00 | 507,772,279.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,577,392,975.96 | 1,583,307,509.86 |
| Less：Shares in stock | 7,525,438.20 | |
| Other comprehensive income | 102,582,897.08 | 107,632,186.85 |
| Special reserve | ||
| Surplus reserves | 94,954,652.14 | 94,954,652.14 |
| Retained profit | 679,065,122.79 | 676,454,033.89 |
| Total of owners’ equity | 2,960,517,496.97 | 2,962,595,223.54 |
| Total of liabilities and owners’ equity | 3,148,642,934.52 | 3,143,879,014.89 |
3.Consolidated Income statement
In RMB
| Items | The first half year of 2021 | The first half year of 2020 |
| I. Income from the key business | 1,101,536,407.38 | 856,313,348.74 |
| Incl：Business income | 1,101,536,407.38 | 856,313,348.74 |
| interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 963,183,000.35 | 847,649,045.52 |
| Incl：Business cost | 863,125,460.07 | 760,908,303.61 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 4,281,044.79 | 2,689,728.06 |
| Sales expense | 20,493,774.82 | 13,380,921.28 |
| Administrative expense | 55,327,660.76 | 44,347,465.66 |
| R & D costs | 29,170,093.39 | 24,561,050.95 |
| Financial expenses | -9,215,033.48 | 1,761,575.96 |
| Including：Interest expense | 379,800.97 | 221,034.71 |
| Interest income | -840,978.40 | -1,738,185.54 |
| Add: Other income | 8,764,569.01 | 13,045,221.53 |
| Investment gain（“-”for loss） | 10,152,132.35 | 13,932,825.63 |
| Incl: investment gains from affiliates | -412,713.12 | -2,253,932.85 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | 914,599.37 | |
| Credit impairment loss | -4,347,598.84 | -3,807,687.50 |
| Impairment loss of assets | -52,628,070.13 | -35,474,634.93 |
| Assets disposal income | -55.96 | -6,837.44 |
| III. Operational profit（“-”for loss） | 101,208,982.83 | -3,646,809.49 |
| Add ：Non-operational income | 20,437,452.38 | 20,431.28 |
| Less: Non-operating expense | 344,978.92 | 106,410.77 |
| IV. Total profit(“-”for loss) | 121,301,456.29 | -3,732,788.98 |
| Less：Income tax expenses | 7,878,916.04 | 5,258,391.87 |
| V. Net profit | 113,422,540.25 | -8,991,180.85 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 113,422,540.25 | -8,991,180.85 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 76,603,074.39 | 719,734.74 |
| 2.Minority shareholders’ equity | 36,819,465.86 | -9,710,915.59 |
| VI. Net after-tax of other comprehensive income | -5,049,289.77 | 2,075,398.37 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -5,049,289.77 | 2,075,398.37 |
| (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | -1,003,968.91 | 1,687,081.80 |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | -1,003,968.91 | 1,687,081.80 |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| (II)Other comprehensive income that will be reclassified into profit or loss. | -4,045,320.86 | 388,316.57 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4.Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | -4,045,320.86 | 388,316.57 |
| 7.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 108,373,250.48 | -6,915,782.48 |
| Total comprehensive income attributable to the owner of the parent company | 71,553,784.62 | 2,795,133.11 |
| Total comprehensive income attributable minority shareholders | 36,819,465.86 | -9,710,915.59 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.1509 | 0.0014 |
| (II)Diluted earnings per share | 0.1509 | 0.0014 |
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB0.00.Legal Representative: Zhang JianPerson-in-charge of the accounting work：He FeiPerson-in -charge of the accounting organ：Zhu Jingjing
4. Income statement of the Parent Company
In RMB
| Items | The first half year of 2021 | The first half year of 2020 |
| I. Income from the key business | 38,146,662.35 | 26,969,922.20 |
| Incl：Business cost | 5,346,478.59 | 4,305,058.16 |
| Business tax and surcharge | 1,523,347.63 | 834,883.15 |
| Sales expense |
| Administrative expense | 19,834,907.43 | 13,651,499.00 |
| R & D expense | ||
| Financial expenses | 162,410.11 | -158,395.30 |
| Including：Interest expenses | 339,399.60 | 0.00 |
| Interest income | -171,381.45 | 176,466.36 |
| Add：Other income | 50,000.00 | 57,638.72 |
| Investment gain（“-”for loss） | 9,140,645.27 | 11,066,543.43 |
| Including: investment gains from affiliates | -412,713.12 | -2,253,932.85 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | 914,599.37 | |
| Credit impairment loss | -196,707.89 | -357,278.55 |
| Impairment loss of assets | ||
| Assets disposal income | ||
| II. Operational profit（“-”for loss） | 21,188,055.34 | 19,103,780.79 |
| Add ：Non-operational income | ||
| Less：Non -operational expenses | 27,244.40 | |
| III. Total profit(“-”for loss) | 21,188,055.34 | 19,076,536.39 |
| Less：Income tax expenses | 3,381,310.97 | 5,102,958.61 |
| IV. Net profit | 17,806,744.37 | 13,973,577.78 |
| 1.Net continuing operating profit | 17,806,744.37 | 13,973,577.78 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | -5,049,289.77 | 2,075,398.37 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | -1,003,968.91 | 1,687,081.80 |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | -1,003,968.91 | 1,687,081.80 |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| (II)Other comprehensive income that will be reclassified int | -4,045,320.86 | 388,316.57 |
| o profit or loss | ||
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3. Other comprehensive income arising from the reclassification of financial assets | ||
| 4.Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | -4,045,320.86 | 388,316.57 |
| 7.Other | ||
| VI. Total comprehensive income | 12,757,454.60 | 16,048,976.15 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
| Items | The first half year of 2021 | The first half year of 2020 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,120,318,752.18 | 771,604,176.04 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 7,389,955.19 | 1,315,022.98 |
| Other cash received from business operation | 42,020,491.27 | 91,408,927.56 |
| Sub-total of cash inflow | 1,169,729,198.64 | 864,328,126.58 |
| Cash paid for purchasing of merchandise and services | 904,947,382.28 | 799,466,447.26 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid to staffs or paid for staffs | 131,060,141.64 | 84,518,321.17 |
| Taxes paid | 25,418,187.30 | 31,950,122.40 |
| Other cash paid for business activities | 160,947,023.67 | 84,012,710.98 |
| Sub-total of cash outflow from business activities | 1,222,372,734.89 | 999,947,601.81 |
| Net cash generated from /used in operating activities | -52,643,536.25 | -135,619,475.23 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 7,958,287.14 | 9,408,374.94 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 600.00 | |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 779,428,611.40 | 1,812,790,070.06 |
| Sub-total of cash inflow due to investment activities | 787,386,898.54 | 1,822,199,045.00 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 195,798,969.38 | 119,759,298.85 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 732,374,977.65 | 1,654,000,000.00 |
| Sub-total of cash outflow due to investment activities | 928,173,947.03 | 1,773,759,298.85 |
| Net cash flow generated by investment | -140,787,048.49 | 48,439,746.15 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 201,089,000.00 | |
| Other financing –related cash received |
| Sub-total of cash inflow from financing activities | 201,089,000.00 | |
| Cash to repay debts | ||
| Cash paid as dividend, profit, or interests | 24,141,288.78 | |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 7,820,298.30 | 8,981,300.40 |
| Sub-total of cash outflow due to financing activities | 31,961,587.08 | 8,981,300.40 |
| Net cash flow generated by financing | 169,127,412.92 | -8,981,300.40 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,040,300.91 | 1,220,721.03 |
| V.Net increase of cash and cash equivalents | -25,343,472.73 | -94,940,308.45 |
| Add: balance of cash and cash equivalents at the beginning of term | 278,337,236.95 | 268,646,588.18 |
| VI ..Balance of cash and cash equivalents at the end of term | 252,993,764.22 | 173,706,279.73 |
6. Cash Flow Statement of the Parent Company
In RMB
| Items | The first half year of 2021 | The first half year of 2020 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 36,947,544.62 | 19,462,991.54 |
| Tax returned | ||
| Other cash received from business operation | 23,757,836.70 | 2,298,590.45 |
| Sub-total of cash inflow | 60,705,381.32 | 21,761,581.99 |
| Cash paid for purchasing of merchandise and services | 5,951,213.89 | 3,731,669.95 |
| Cash paid to staffs or paid for staffs | 15,731,460.61 | 13,526,840.12 |
| Taxes paid | 14,531,396.20 | 27,458,170.70 |
| Other cash paid for business activities | 3,676,889.38 | 1,020,252.05 |
| Sub-total of cash outflow from business activities | 39,890,960.08 | 45,736,932.82 |
| Net cash generated from /used in operating activities | 20,814,421.24 | -23,975,350.83 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 5,448,251.42 | 6,311,044.65 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units |
| Other investment-related cash received | 347,796,939.77 | 791,934,487.06 |
| Sub-total of cash inflow due to investment activities | 353,245,191.19 | 798,245,531.71 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 1,325,797.35 | 1,003,466.38 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 384,000,000.00 | 780,000,000.00 |
| Sub-total of cash outflow due to investment activities | 385,325,797.35 | 781,003,466.38 |
| Net cash flow generated by investment | -32,080,606.16 | 17,242,065.33 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | ||
| Cash to repay debts | ||
| Cash paid as dividend, profit, or interests | 15,176,281.23 | |
| Other cash paid for financing activities | 7,820,298.30 | 8,981,300.40 |
| Sub-total of cash outflow due to financing activities | 22,996,579.53 | 8,981,300.40 |
| Net cash flow generated by financing | -22,996,579.53 | -8,981,300.40 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -34,262,764.45 | -15,714,585.90 |
| Add: balance of cash and cash equivalents at the beginning of term | 113,560,327.21 | 27,979,338.37 |
| VI ..Balance of cash and cash equivalents at the end of term | 79,297,562.76 | 12,264,752.47 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | The first half year of 2021 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| I .Balance at the end of last year | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 | ||||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of current year | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 | ||||||
| III .Changed in the current year | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | -5,049,289.77 | 61,407,418.92 | 56,718,603.45 | 36,819,465.86 | 93,538,069.31 | |||||||
| （1）Total comprehensive income | -5,049,289.77 | 76,603,074.39 | 71,553,784.62 | 36,819,465.86 | 108,373,250.48 | ||||||||||
| （II）Investment or decreasing of capital by owners | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | 360,474.30 | ||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | 360,474.30 | ||||||||||
| （III）Profit | -15,19 | -15,19 | -15,19 |
| allotment | 5,655.47 | 5,655.47 | 5,655.47 | ||||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -15,195,655.47 | -15,195,655.47 | -15,195,655.47 | ||||||||||||
| 4．Other | |||||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special |
| reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | |||||||||||||||
| IV. Balance at the end of this term | 506,521,849.00 | 1,961,599,824.63 | 0.00 | 111,556,642.65 | 94,954,652.14 | 148,319,809.42 | 2,822,952,777.84 | 1,169,900,541.09 | 3,992,853,318.93 |
Amount in last year
In RMB
| Items | The first half year of 2020 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| Preferred stock | Sustainable debt | Other | |||||||||||||
| I .Balance at the end of last year | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| III .Changed in the current year | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | 2,075,398.37 | 719,734.74 | 2,795,133.11 | -9,710,915.59 | -6,915,782.48 | |||||||
| （1）Total comprehensive income | 2,075,398.37 | 719,734.74 | 2,795,133.11 | -9,710,915.59 | -6,915,782.48 | ||||||||||
| （II）Investment or decreasing of capital by owners | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | ||||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | ||||||||||||
| （III）Profit allotment | |||||||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||||
| 4．Other | |||||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) |
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | |||||||||||||||
| IV. Balance at the end of this term | 507,835,189.00 | 1,967,811,922.83 | 7,525,438.20 | 121,813,181.68 | 90,596,923.39 | 50,027,498.77 | 2,730,559,277.47 | 1,117,140,510.23 | 3,847,699,787.70 |
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | The first half year of 2021 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in | Other Compreh | Specialized | Surplus reserves | Retained profit | Other | Total of owners’ | |||
| Preferr | Other | |||||||||||
| ed stock | Sustainable debt | stock | ensive Income | reserve | equity | |||||||
| I.Balance at the end of last year | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 | |||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of current year | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 | |||||
| III .Changed in the current year | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | -5,049,289.77 | 2,611,088.90 | -2,077,726.57 | ||||||
| （I）Total comprehensive income | -5,049,289.77 | 2,611,088.90 | -2,438,200.87 | |||||||||
| (II) Investment or decreasing of capital by owners | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | ||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | -1,250,430.00 | -5,914,533.90 | -7,525,438.20 | 360,474.30 | ||||||||
| （III）Profit allotment | ||||||||||||
| 1.Providing of |
| surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | ||||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this | 506,521,849.0 | 1,577,392,975.96 | 102,582,897.08 | 94,954,652.14 | 679,065,122.7 | 2,960,517,496.97 |
| term | 0 | 9 |
Amount in last year
In RMB
| Items | The first half year of 2020 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| Preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of current year | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||||
| III. Changed in the current year | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | 2,075,398.37 | 13,973,577.78 | 16,048,976.15 | ||||||
| （I）Total comprehensive income | 2,075,398.37 | 13,973,577.78 | 16,048,976.15 | |||||||||
| (II) Investment or decreasing of capital by owners | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | |||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and | ||||||||||||
| accounted as owners’ equity | ||||||||||||
| 4．Other | -1,503,240.00 | -7,110,325.20 | -8,613,565.20 | |||||||||
| （III）Profit allotment | ||||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | ||||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other |
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this term | 507,835,189.00 | 1,582,759,174.16 | 7,525,438.20 | 112,839,436.11 | 90,596,923.39 | 651,208,052.93 | 2,937,713,337.39 |
III. Basic Information of the CompanyShenzhen Textile (Group) Co., Ltd. (hereinafter referred to as "Company" or "the Company") is a joint-stockcompany registered in Guangdong Province with a registered capital of RMB 506.521849 million and a unifiedsocial credit code of 91440300192173749Y. The Company has publicly issued RMB common shares (A shares)and domestic listed foreign shares (B shares) to the public at home and abroad, and listed and traded them. TheCompany is headquartered address are 6/F,Shenzhen Textile Building, No.3 Huaqiang Road. North, FutianDistrict, Shenzhen.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by theLetter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured andnamed as Shenzhen Textile (Group) Co., Ltd. ，As of June 30, 2021, the Company has issued a total of506,521,849.00 shares.The Company has established the corporate governance structure of General Meeting of Shareholders, Boardof Directors and Board of Supervisors, and currently has the Board Office, Office, Strategic DevelopmentDepartment, Operation and Management Department, Finance Department, Audit Department, Human ResourcesDepartment and other departments.The Company is mainly engaged in high-tech industry focusing on R&D, production and marketing of polarizersfor liquid crystal display, management of properties in bustling business districts of Shenzhen and reservedhigh-class textile and garment business.The financial statements have been authorized for issuance of the 2n meeting of the 8th Board of Directors of theGroup on August 26,2021.I.Scope of consolidated financial statementsAs of June 30, 2021, A total of 9 subsidiaries of the Company are included in the scope of consolidation. Fordetails, please refer to Note IX "Rights and Interests in Other Subjects".VI.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprisespromulgated by the Ministry of Finance and its application guidelines, interpretations and other relevantprovisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, theCompany also disclosed relevant financial information in accordance with the Rules No.15 for the InformationDisclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on Financial
Report (revised in 2014) issued by China Securities Regulatory Commission.The financial statements are presented on the basis of going concern.The accounting of the Company is based on accrual basis. Except for some financial instruments, thefinancial statements are based on historical costs. In case of asset impairment, impairment provision shall be madein accordance with relevant regulations.
(2)Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will causematerial doubts as to the continuation capability of the Company.V. Important accounting policies and estimationsSpecific accounting policies and accounting estimates tips:
According to its own production and operation characteristics, the Company determines the policies ofdepreciation of fixed assets, amortization of intangible assets and revenue recognition. See Note V. 12, Note ,NoteV ,19,III. 12 and V. 26 for specific accounting policies.
1. Statement on complying with corporate accounting standards
This financial statement conforms to the requirements of Accounting Standards for Business Enterprises, and trulyand completely reflects the combination and financial status of the Company on June 30, 2021, as well as thecombination and operating results and cash flow of the Company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as thefiscal year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Accounting standard money
The Company and its domestic subsidiaries use RMB as their bookkeeping base currency. The overseassubsidiaries of the Company determine RMB as their bookkeeping base currency according to the currency in themain economic environment in which they operate. The currency used by the Company in preparing the financialstatements is RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For business combination under the same control, the assets and liabilities of the combined party acquired bythe merging party during the combination shall be measured according to the book value of the combined party inthe consolidated financial statements of the final controlling party on the combination date, except for theadjustment due to different accounting policies. The difference between the book value of the combinationconsideration and the book value of the net assets obtained in the combination adjusts the capital reserve. If thecapital reserve is insufficient to offset, the retained earnings will be adjusted.Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements, the share of the book value of the net assets of the combined party in theconsolidated financial statements of the ultimate controlling party shall be taken as the initial investment cost ofthe investment on the combination day calculated by the shareholding ratio on the combination day; Adjust thecapital reserve for the difference between the initial investment cost and the book value of the investment heldbefore the combination plus the book value of the consideration paid on the new day of the combination. If thecapital reserve is insufficient to offset, adjust the retained earnings.In the consolidated financial statements, the assets and liabilities of the combined party acquired by themerging party in the combination shall be measured according to the book value in the consolidated financialstatements of the ultimate controlling party on the combination date, except for the adjustment due to differentaccounting policies; The difference between the book value of the investment held before the combination plus thebook value of the consideration paid on the new day of the combination and the book value of the net assetsobtained during the combination will be adjusted for capital reserve. If the capital reserve is insufficient to offset,the retained earnings will be adjusted. For the long-term equity investment held by the merging party beforeobtaining the control right of the combined party, the relevant profits and losses, other comprehensive income andother changes in owner's equity have been recognized from the date of obtaining the original equity and the datewhen the merging party and the combined party are under the same final control to the combination date, and theinitial retained earnings or current profits and losses during the comparative report period shall be offsetrespectively.
(2) Business combination involving entities not under common control
For business combination not under the same control, the combination cost refers to the assets paid, liabilitiesincurred or assumed, and fair value of the issued equity securities in order to gain control over the acquiree on theacquisition date. On the acquisition date, the acquired assets, liabilities and contingent liabilities of the acquireeare recognized at fair value.
The difference between the combination cost and the fair value share of identifiable net assets acquired in thecombination is recognized as goodwill, and the accumulated impairment provision is deducted by cost forsubsequent measurement; The difference between the combination cost and the fair value share of identifiable netassets acquired by the acquiree in the combination shall be recorded into the current profits and losses afterreview.
Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements, the sum of the book value of the equity investment held by the acquireebefore the acquisition date and the new investment cost on the acquisition date is taken as the initial investmentcost of the investment. Other comprehensive income recognized by the equity investment held before theacquisition date due to accounting by the equity method is not treated on the acquisition date, and accountingtreatment is carried out on the same basis as that of the investee's direct disposal of related assets or liabilities; Theowner's equity recognized due to the change of owner's equity of the investee except net profit and loss, othercomprehensive income and profit distribution shall be transferred to the current profit and loss during the disposalperiod when the investment is disposed. If the equity investment held before the acquisition date is measured byfair value, the accumulated changes in fair value originally included in other comprehensive income will betransferred to the current profits and losses when accounting by cost method.
In the consolidated financial statements, the consolidated cost is the sum of the consideration paid on theacquisition date and the fair value of the equity of the acquiree held before the acquisition date on the acquisitiondate. The equity of the acquiree held before the acquisition date shall be re-measured according to the fair value ofthe equity on the acquisition date, and the difference between the fair value and its book value shall be included in
the current income; Equity of the acquiree held before the acquisition date involves other comprehensive income,and other changes in owner's equity are converted into current income on the acquisition date, except for othercomprehensive income arising from the remeasurement of net liabilities or changes in net assets of the set incomeplan by the investee.
(3) Treatment of transaction costs in business combination
Intermediary expenses such as auditing, legal services, evaluation and consultation, and other relatedmanagement expenses incurred for business combination are included in the current profits and losses when theyoccur. Transaction costs of equity securities or debt securities issued as combination consideration are included inthe initial recognition amount of equity securities or debt securities.6 Compilation method of consolidated financial statements
(1)The scope of consolidation
The consolidation scope of consolidated financial statements is determined on the basis of control. Controlrefers to that the company has the power over the investee, enjoys variable returns by participating in the relatedactivities of the investee, and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,structured subjects, etc.).
The consolidation scope of consolidated financial statements is determined on the basis of control. Controlrefers to that the company has the power over the investee, enjoys variable returns by participating in the relatedactivities of the investee, and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises, divisible parts of investee,structured subjects, etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and itssubsidiaries, and are prepared by the Company according to other relevant information. When preparing theconsolidated financial statements, the accounting policies and accounting period requirements of the Companyand its subsidiaries are consistent, and major transactions and current balances between companies are offset.During the reporting period, the subsidiaries and businesses increased due to the business combination under thesame control shall be deemed to be included in the consolidation scope of the Company from the date when theyare controlled by the ultimate controller, and their operating results and cash flows from the date when they arecontrolled by the ultimate controller shall be included in the consolidated income statement and the consolidatedcash flow statement respectively.
During the reporting period, the income, expenses and profits of subsidiaries and businesses increased fromthe acquisition date to the end of the reporting period due to business combination not under the same controlduring the reporting period are included in the consolidated income statement, and their cash flows are included inthe consolidated cash flow statement.
The part of shareholders' equity of subsidiaries that is not owned by the Company is listed separately asminority shareholders' equity in the consolidated balance sheet; The share of minority shareholders' equity in thecurrent net profit and loss of subsidiaries is listed as "minority shareholders' profit and loss" under the net profititem in the consolidated income statement. If the loss of subsidiary shared by minority shareholders exceeds theshare enjoyed by minority shareholders in the initial owner's equity of such subsidiary, the balance still offsetsminority shareholders' equity.
(3) Acquisition of minority shareholders' equity of subsidiaries
The capital reserve in the consolidated balance sheet shall be adjusted for the difference between the newlyacquired long-term equity investment cost due to the acquisition of minority shares and the share of net assetscontinuously calculated by subsidiaries from the acquisition date or combination date, and the difference betweenthe disposal price obtained from partial disposal of equity investment in subsidiaries without losing control andthe share of net assets continuously calculated by subsidiaries from the acquisition date or combination datecorresponding to the disposal of long-term equity investment. If the capital reserve is insufficient to offset, theretained earnings shall be adjusted.
(4) Treatment of losing control over subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or otherreasons, the remaining equity shall be re-measured according to its fair value on the date of loss of control; Thesum of the consideration obtained from the disposal of equity and the fair value of remaining equity, minus thesum of the share of the original subsidiary's book value of net assets calculated continuously from the acquisitiondate and goodwill calculated according to the original shareholding ratio, and the difference formed is included inthe investment income of the current period of loss of control.
Other comprehensive income related to the original subsidiary's equity investment will be transferred to thecurrent profits and losses when the control right is lost, except for other comprehensive income generated by theinvestee's remeasurement of the net liabilities or changes in net assets of the set income plan.
7.Joint venture arrangements classification and Co-operation accounting treatment
Joint venture arrangement refers to an arrangement under the joint control of two or more participants. Thejoint venture arrangement of the Company is divided into joint operation and joint venture.
(1) Joint operation
Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets relatedto the arrangement and bears the liabilities related to the arrangement.
The Company recognizes the following items related to the share of interests in joint operation, and carriesout accounting treatment in accordance with the relevant accounting standards for business enterprises:
A. Recognize assets held separately and assets held jointly according to their shares;
B. Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertaken accordingto their shares;
C. Recognize the income generated from the sale of its share of joint operating output;
D. Recognize the income generated by the sale of output from joint operation according to their shares;
E. Recognize the expenses incurred separately, and recognize the expenses incurred in joint operationaccording to their shares.
(2) Joint venture
A joint venture refers to a joint venture arrangement in which the Company only has rights to the net assetsof the arrangement.
The Company shall carry out accounting treatment on the investment of the joint venture in accordance withthe provisions on accounting of long-term equity investment by the equity method.
8.Recognition Standard of Cash & Cash Equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments held by the Company with short term, strong liquidity, easy conversion into known cash and little riskof value change.
9.Foreign currency transaction
In case of foreign currency business of the Company, the exchange rate determined by a systematic andreasonable method which is similar to the spot exchange rate on the transaction date shall be used to convert itinto the bookkeeping base currency amount.Balance sheet date: foreign currency monetary items shall be converted at the spot exchange rate on thebalance sheet date. Exchange differences arising from the difference between the spot exchange rate on thebalance sheet date and the spot exchange rate at the time of initial recognition or the previous balance sheet dateare included in the current profits and losses; For foreign currency non-monetary items measured at historical cost,the spot exchange rate on the transaction date is still adopted; Foreign currency non-monetary items measured atfair value are converted at the spot exchange rate on the fair value determination date, and the difference betweenthe converted bookkeeping base currency amount and the original bookkeeping base currency amount is includedin the current profits and losses.
10.Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities orequity instruments of other parties.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract, a financial asset or financial liabilityis recognized.
Financial assets that meet one of the following conditions shall be derecognized:
① Termination of the contractual right to receive cash flow from the financial asset;
② The financial asset has been transferred and the following conditions for derecognition of financial assettransfer are met.
If all or part of the current obligations of a financial liability have been discharged, the financial liability orpart of it shall be derecognized. If the Company (debtor) signs an agreement with the creditor to replace theexisting financial liabilities by assuming new financial liabilities, and the contract terms of the new financialliabilities are substantially different from those of the existing financial liabilities, the existing financial liabilitiesshall be derecognized and the new financial liabilities shall be recognized at the same time.
When trading the financial assets in a conventional way, accounting recognition and derecognition shall becarried out according to the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics offinancial assets, the Company divides financial assets into the following three categories: financial assetsmeasured at amortized cost, financial assets measured at fair value with changes included in other comprehensiveincome, and financial assets measured at fair value with changes included in current profits and losses.Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated to bemeasured at fair value with changes included in current profits and losses as financial assets measured at
amortized cost:
? The Company's business model of managing such financial assets is to collect contract cash flow as the goal;? According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.? After initial recognition, such financial assets are measured in amortized cost by the effective interest ratemethod. Gains or losses arising from financial assets measured in amortized cost that are not part of anyhedging relationship are included in current profits and losses when derecognition, amortization according tothe effective interest rate method, or impairment recognition.Financial assets measured at fair value and changes included in other comprehensive incomeThe Company classifies financial assets that meet the following conditions and are not designated to bemeasured at fair value with changes included in current profits and losses as financial assets measured at fair valuewith changes included in other comprehensive income:
? The company's business model of managing the financial assets aims at both collecting contract cash flow
and selling the financial assets;? According to the contract terms of the financial asset, the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.
After initial recognition, the fair value of such financial assets is subsequently measured. Interest, impairment
losses or gains and exchange gains and losses calculated by the effective interest rate method are included in
the current profits and losses, while other gains or losses are included in other comprehensive income. Upon
termination of recognition, the accumulated gains or losses previously included in other comprehensive
income shall be transferred out of other comprehensive income and included in current profits and losses.
Financial assets measured at fair value with changes included in current profits and losses
Except for the above financial assets measured at amortized cost and at fair value with changes included inother comprehensive income, the Company classifies all other financial assets as financial assets measured at fairvalue with changes included in current profits and losses. At the time of initial recognition, in order to eliminate orsignificantly reduce accounting mismatch, the Company irrevocably designated some financial assets that shouldhave been measured at amortized cost or at fair value with changes included in other comprehensive income asfinancial assets measured at fair value with changes included in current profits and losses.
After initial recognition, the financial assets are subsequently measured at fair value, and the resulting gainsor losses (including interest and dividend income) are included in the current profits and losses, unless thefinancial assets are part of the hedging relationship.
However, for non-trading equity instrument investments, the Company can irrevocably designate them asfinancial assets measured at fair value with changes included in other comprehensive income upon initialrecognition. The designation is made on the basis of a single investment, and the relevant investment conforms tothe definition of equity instruments from the perspective of the issuer.
After initial recognition, the fair value of such financial assets is subsequently measured. Dividend incomethat meets the requirements is included in profit or loss, and other gains or losses and changes in fair value areincluded in other comprehensive income. Upon termination of recognition, the accumulated gains or lossespreviously included in other comprehensive income shall be transferred out of other comprehensive income andincluded in retained income.
The business model of managing financial asset refers to how the Company manages financial assets togenerate cash flow. The business model determines whether the cash flow of financial assets managed by theCompany comes from contract cash flow, sale of financial assets or both. The Company determines the business
model of managing financial assets based on objective facts and specific business objectives of managingfinancial assets decided by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flow generated by related financial assets on a specific date is only the payment of principal andinterest based on the unpaid principal amount. Where, the principal refers to the fair value of financial assets atinitial recognition; Interest includes consideration for the time value of money, credit risk related to the unpaidprincipal amount in a specific period, and other basic borrowing risks, costs and profits. In addition, the Companyevaluates the contract clauses that may cause changes in the time distribution or amount of cash flow of financialassets contracts to determine whether they meet the requirements of the above-mentioned contract cash flowcharacteristics.Only when the Company changes its business model for managing financial assets, all affected financialassets shall be reclassified on the first day of the first reporting period after the business model changes, otherwise,financial assets shall not be reclassified after initial recognition.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value,whose changes are included in current profits and losses, relevant transaction costs are directly included in currentprofits and losses; For other types of financial assets, relevant transaction costs are included in the initialrecognition amount. Accounts receivable arising from the sale of products or the provision of labor services thatdo not include or take into account significant financing components are initially recognized by the Company inaccordance with the amount of consideration that the Company is expected to be entitled to receive.
(3) Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Company are classified into: financial liabilitiesmeasured at fair value with changes included in current profits and losses, and financial liabilities measured atamortized cost. For financial liabilities that are not classified as measured at fair value with changes included incurrent profits and losses, relevant transaction costs are included in their initial recognition amount.
Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value with changes included in current profits and losses includetransactional financial liabilities and financial liabilities designated at fair value at initial recognition with changesincluded in current profits and losses. Such financial liabilities are subsequently measured according to fair value,and the gains or losses caused by changes in fair value and dividends and interest expenses related to suchfinancial liabilities are included in current profits and losses..Financial liabilities measured in amortized cost
Other financial liabilities are subsequently measured according to the amortized cost by the effective interestrate method, and the gains or losses arising from derecognition or amortization are included in the current profitsand losses.Distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
① Contract obligation to deliver cash or other financial assets to other parties.
② The contractual obligation to exchange financial assets or financial liabilities with other parties underpotential unfavorable conditions.
③ Non-derivative contracts that need to be settled or can be settled by the enterprise's own equityinstruments in the future, for which the enterprise will deliver a variable number of its own equity instrumentsaccording to this contract.
④ Derivative contracts that need to be settled or can be settled by the enterprise's own equity instruments inthe future, except for derivative contracts that exchange a fixed amount of its own equity instruments for a fixedamount of cash or other financial assets.Equity instruments refer to contracts that can prove ownership of an enterprise's residual equity in assets afterdeducting all liabilities.If the Company can't unconditionally avoid delivering cash or other financial assets to fulfill a contractualobligation, the contractual obligation meets the definition of financial liabilities.If a financial instrument needs to be settled or can be settled by the Company's own equity instrument, it shallbe considered whether its own equity instrument used to settle the instrument is a substitute for cash or otherfinancial assets, or it is to enable the holder of such instrument to be entitled to the remaining equity in the assetsafter all liabilities are deducted by the issuer. In the former case, the instrument is the financial liability of theCompany; In the latter case, the instrument is the equity instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
Initially, it is measured at the fair value on the day when the derivative transaction contract is signed, andthen measured at its fair value. Derivative financial instruments with positive fair value are recognized as an asset,while those with negative fair value are regarded as an liability. Any gains or losses arising from changes in fairvalue that do not meet the requirements of hedge accounting are directly included in the current profits and losses.
For mixed instruments including embedded derivative, if the main contract is financial assets, the relevantprovisions of financial asset classification shall apply to the mixed instruments as a whole. If the main contract isnot a financial asset, and the mixed instrument is not measured at fair value with changes included in the currentprofits and losses for accounting treatment, the embedded derivative is not closely related to the main contract interms of economic characteristics and risks, and has the same conditions as the embedded derivative, and if theindependent instrument meets the definition of derivative, the embedded derivative is split from the mixedinstrument and treated as a separate derivative financial instrument. If the embedded derivative cannot beseparately measured at the time of acquisition or on the subsequent balance sheet date, the mixed instruments as awhole are designated as financial assets or financial liabilities measured at fair value with changes included in thecurrent profits and losses.
(5) Fair value of financial instruments
See Note III. 11 for the determination method of the fair value of financial assets and financial liabilities.
(6) Impairment of financial assets
Based on the expected credit loss, the Company will carry out impairment accounting treatment on thefollowing items and recognize the loss reserve:
① Financial assets measured at amortized cost;
② Receivables and debt investments measured at fair value and included in other comprehensive income;
③ Lease receivables;
④ Financial guarantee contracts (except those which are measured at fair value with changes included incurrent profits and losses, in which the transfer of financial assets does not meet the conditions for derecognition,or those formed by continuing to involve the transferred financial assets).
Measurement of expected credit loss
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted bythe risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted according
to the original real interest rate and the expected cash flow of all contracts receivable according to the contract,that is, the present value of all cash shortages.
The Company takes into account reasonable and reliable information on historical events, current situationand future economic situation forecasts, and uses the risk of default as the weight to calculate the probabilityweighted amount of the present value of the difference between the cash flow receivable from the contract and thecash flow expected to be received to recognize the expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. Ifthe credit risk of financial instruments has not increased significantly since the initial recognition, it is in the firststage. The Company measures the loss reserve according to the expected credit loss in the next 12 months; If thecredit risk of a financial instrument has increased significantly since its initial recognition but no creditimpairment has occurred, it is in the second stage. The Company measures the loss reserve according to theexpected credit loss of the instrument throughout the duration; If a financial instrument has suffered creditimpairment since its initial recognition, it is in the third stage. The Company measures the loss reserve accordingto the expected credit loss of the instrument throughout the duration.For financial instruments with low credit risk on the balance sheet date, the Company assumes that theircredit risk has not increased significantly since the initial recognition, and measures the loss reserve according tothe expected credit loss in the next 12 months.The expected credit loss in the whole duration refers to the expected credit loss caused by all possible defaultevents in the whole expected duration of financial instruments. The expected credit loss in the next 12 monthsrefers to the expected credit loss caused by the financial instrument default event that may occur within 12 monthsafter the balance sheet date (or within the expected duration if the expected duration of the financial instrument isless than 12 months), which is a part of the expected credit loss in the whole duration.When measuring the expected credit loss, the longest period that the Company needs to consider is thelongest contract period during which the enterprise is subject to credit risk (including the option to renew thecontract).
For financial instruments in the first and second stages and with low credit risk, the Company calculatesinterest income based on the book balance before deducting impairment provisions and the actual interest rate. Forfinancial instruments in the third stage, the interest income shall be calculated according to their book balanceminus the amortized cost after impairment provision and the actual interest rate.
For notes receivable and accounts receivable, regardless of whether there is significant financing component,the Company always measures the loss reserve according to the amount equivalent to the expected credit loss inthe whole duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: commercial acceptance bill
B. Accounts receivable
Accounts receivable portfolio 1: polarizer sales receivable
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own propertyAccounts receivable portfolio 4: other receivablesFor notes receivable divided into portfolios, the Company refers to the historical credit loss experience, andcalculates the expected credit loss through the default risk exposure and the expected credit loss rate of the wholeduration based on the current situation and forecasts the future economic situation.For accounts receivable divided into combinations, the Company refers to the historical credit lossexperience, combines the current situation with the forecast of future economic situation, compiles a comparisontable of aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, andcalculates the expected credit loss.Other receivables
The Company classifies other receivables into several combinations according to the credit riskcharacteristics, and calculates the expected credit losses based on the portfolios. The basis for determining theportfolio is as follows:
Other receivables portfolio: aging portfolio
For other receivables classified as portfolios, the Company calculates the expected credit loss through thedefault risk exposure and the expected credit loss rate in the next 12 months or the whole duration.Debt investment and other debt investment
For creditor's rights investment and other creditor's rights investment, the Company calculates the expectedcredit loss according to the nature of the investment, the counterparty and various types of risk exposure andbased on the expected credit loss rate in the next 12 months or the whole duration.Evaluation of significant increase in credit risk
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default onthe initial recognition date, the Company determines the relative change of default risk of financial instruments inthe expected duration, and evaluates whether the credit risk of financial instruments has increased significantlysince initial recognition.
When determining whether the credit risk has increased significantly since the initial recognition, thecompany considers to obtain reasonable and reliable information without unnecessary extra costs or efforts,including forward-looking information. Information considered by the Company includes:
? The debtor fails to pay the principal and interest according to the expiration date of the contract;? Serious deterioration of external or internal credit rating (if any) of financial instruments that has occurred
or is expected;? Serious deterioration of the debtor's operating results that has occurred or is expected;? Changes in existing or expected technology, market, economic or legal environment, and significant adverse
effects on the debtor's repayment ability of the Company.
According to the nature of financial instruments, the Company assesses whether credit risks have increased
significantly on the basis of individual financial instruments or financial instrument portfolios. When
evaluating on the basis of financial instrument portfolio, the Company can classify financial instruments
based on common credit risk characteristics, such as overdue information and credit risk rating.
Financial assets with credit impairment
On the balance sheet date, the Company evaluates whether the financial assets measured at amortized costand the creditor's rights investments measured at fair value with changes included in other comprehensive income
have suffered credit impairment. When one or more events that adversely affect the expected future cash flow of afinancial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence of creditimpairment of financial assets includes the following observable information:
? The issuer or debtor has major financial difficulties;? The debtor violates the contract, such as default or overdue payment of interest or principal;? The Company gives concessions that the debtor will not make under any other circumstances due to
economic or contractual considerations related to the debtor's financial difficulties;? The debtor is likely to go bankrupt or undergo other financial restructuring;? The financial difficulties of the issuer or debtor cause the active market of the financial assets to disappear.
Presentation of expected credit loss provision
In order to reflect the change of credit risk of financial instruments after initial recognition, the Companyre-measures the expected credit loss on each balance sheet date, and the resulting increase or reversal amount ofloss reserve shall be included in the current profits and losses as impairment losses or gains. For financial assetsmeasured in amortized cost, the loss reserve shall be offset against the book value of the financial assets listed inthe balance sheet; For creditor's rights investments measured at fair value with changes included in othercomprehensive income, the Company recognizes its loss reserve in other comprehensive income, which does notoffset the book value of the financial asset.Cancel after verification
If the Company no longer reasonably expects the contract cash flow of financial assets to be fully or partiallyrecovered, it will directly write down the book balance of the financial assets. This write-down constitutes thederecognition of related financial assets. It usually happens when the Company determines that the debtor has noassets or income sources to generate enough cash flow to repay the amount to be written down. However,according to the Company's procedures for recovering the due amount, the written-down financial assets may stillbe affected by the implementation activities.
If the written-down financial assets are recovered later, they will be included in profits and losses of thecurrent recovery period as the reversal of impairment losses.
(7) Transfer of financial assets
Transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee)other than the issuer of the financial assets.
If the company has transferred almost all risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial asset shall be terminated; If almost all risks and rewards on theownership of a financial asset are retained, the financial asset shall not be derecognized.
If the Company has neither transferred nor retained almost all risks and rewards in the ownership of financialassets, it shall be dealt with as follows: if the control of the financial assets is abandoned, the financial assets shallbe derecognized and the resulting assets and liabilities shall be recognized; If the control of the financial assets isnot abandoned, the relevant financial assets shall be recognized according to the extent of their continuedinvolvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
(8) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized financial assets and financial liabilities, whichcan be enforced at present, and the Company plans to settle by net amount or at the same time realize suchfinancial assets and pay off such financial liabilities, the financial assets and financial liabilities are listed in the
balance sheet with the amount after offset. In addition, financial assets and financial liabilities are listed separatelyin the balance sheet and will not be offset against each other.
11. Notes receivable
For notes receivable and accounts receivable, regardless of whether there is significant financing component,the Company always measures the loss reserve according to the amount equivalent to the expected credit loss inthe whole duration.When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: commercial acceptance bill
For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, andcalculates the expected credit loss through the default risk exposure and the expected credit loss rate of the wholeduration based on the current situation and forecasts the future economic situation.
12. Accounts receivable
For notes receivable and accounts receivable, regardless of whether there is significant financing component,the Company always measures the loss reserve according to the amount equivalent to the expected credit loss inthe whole duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the combinations, and determines thecombination on the following basis:
Accounts receivable portfolio 1: polarizer sales receivable
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own property
Accounts receivable portfolio 4: other receivablesFor accounts receivable divided into combinations, the Company refers to the historical credit loss experience,combines the current situation with the forecast of future economic situation, compiles a comparison table ofaging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculatesthe expected credit loss.
13. Receivable financing
For bills receivable and accounts receivable classified as those measured at fair value and whose changes areincluded in other comprehensive income, the portion with self-financing period within one year (including oneyear) is listed as receivables financing; If the period of self-acceptance is more than one year, it shall be listed asother creditor's rights investment. For relevant accounting policies, please refer to Note V, (10) "FinancialInstruments" and Note V, (10) "Impairment of Financial instruments ".
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivablesThe Company divides the other receivables into several portfolio according to the credit risk characteristics,and calculates the expected credit losses on the basis of determining the portfolio as follows:
Other receivables portfolio: age portfolio:
For accounts receivable divided into combinations, the Company refers to the historical credit loss experience,combines the current situation with the forecast of future economic situation, compiles a comparison table ofaging/overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculatesthe expected credit loss.
15.Inventory
1.Investories class
The Company's inventory includes raw materials, in-process products, low-value consumables, packagingmaterials, inventory goods, and issued goods.
(2) Pricing method of issued inventory
The Company's inventory is priced at the actual cost when it is acquired. The weighted average method isadopted when raw materials and inventory goods are issued.
(3) Determination basis of net realizable value of inventory and accrual method of inventory depreciationreserve
The net realizable value of inventory is the estimated selling price of inventory minus the estimated costs tobe incurred upon completion, estimated sales expenses and related taxes. For determination of the net realizablevalue of inventories, the solid evidence shall serve as the basis, and the purpose of holding inventories and theinfluence of events after the balance sheet date shall be considered.
On the balance sheet date, if the inventory cost is higher than its net realizable value, inventory depreciationreserve shall be made. The Company usually accrues the inventory depreciation reserve according to individualinventory items. On the balance sheet date, if the influencing factors of previous inventory value written downhave disappeared, the inventory depreciation reserve will be returned within the originally accrued amount.
(4) Inventory system of inventory
Perpetual inventory system is adopted for the Company's inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables and packaging materials of the Company are amortized by one-time write-offmethod.
16.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled itsperformance obligations according to the contract, and which is not the right to collect money from customersunconditionally (that is, only depending on the passage of time) as a contract asset in the balance sheet. Contractassets and liabilities under the same contract are listed in net amount, while contract assets and liabilities underdifferent contracts are not offset.
17.Contract Costs
Contract costs include incremental costs incurred for obtaining contracts and contract performance costs.The incremental cost incurred for obtaining the contract refers to the cost that the Company will not incurwithout obtaining the contract (such as sales commission, etc.). If the cost is expected to be recovered, theCompany will recognize it as the contract acquisition cost as an asset. Other expenses incurred by the Company toobtain the contract except the incremental cost expected to be recovered are included in the current profits andlosses when incurred.If the cost incurred for the performance of the contract does not fall within the scope of other accountingstandards for enterprises such as inventory and meets the following conditions at the same time, the Company willrecognize it as the contract performance cost as an asset:
① Such cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred onlydue to this contract;
② Such cost increases the resources of the Company for fulfilling its performance obligations in the future;
③ The cost is expected to be recovered.
Assets recognized by contract acquisition cost and assets recognized by contract performance cost (hereinafterreferred to as "Assets Related to Contract Cost") shall be amortized on the same basis as the revenue recognitionof goods or services related to the assets, and shall be included in current profits and losses.
When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Company will accrue impairment provision of the excess and recognize it as the assetimpairment loss:
① The remaining consideration expected to be obtained by the Company due to the transfer of goods orservices related to the asset;
② The estimated cost to be incurred for transferring the related goods or services.
The contract performance cost recognized as an asset shall be amortized for no more than one year or onenormal business cycle at the time of initial recognition, which shall be listed in "Inventory", and the amortizationperiod for more than one year or one normal business cycle at the time of initial recognition shall be listed in"Other Non-current Assets".
The contract acquisition cost recognized as an asset shall be amortized for no more than one year or onenormal business cycle at initial recognition, and shall be listed in "Other Current Assets". The amortization periodfor initial recognition shall exceed one year or one normal business cycle, and shall be listed in "OtherNon-current Assets".
18.Held-for-sale assets
(1) Classification and measurement of non-current assets or disposal groups held for saleWhen the book value of a non-current asset or disposal group is recovered by the Company mainly by sellingit (including the exchange of non-monetary assets with commercial nation) rather than continuously using it, thenon-current asset or disposal group is classified as held for sale.
The above-mentioned non-current assets do not include investment real estate measured by fair value model,biological assets measured by net amount of fair value minus selling expenses, assets formed by employeecompensation, financial assets, deferred income tax assets and rights arising from insurance contracts.
The disposal group refers to a group of assets disposed of together by sale or other means in a transaction asa whole, and liabilities directly related to these assets transferred in the transaction. Under certain circumstances,the disposal group includes goodwill obtained in business combination, etc.
Meanwhile, non-current assets or disposal groups that meet the following conditions are classified asheld-for-sale: according to the practice of selling such assets or disposal groups in similar transactions, thenon-current assets or disposal groups can be sold immediately under the current situation; The sale is very likelyto happen, that is, a resolution has been made on a sale plan and a certain purchase commitment has been obtained,and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to thesale of investments in subsidiaries, whether or not the Company retains part of the equity investments after thesale, when the investment in subsidiaries to be sold meets the classification conditions of holding for sale, theinvestment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements, and allassets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.
When the non-current assets or disposal groups held for sale are initially measured or re-measured on thebalance sheet date, the difference between the book value and the net amount after deduction of the sales expensesfrom the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss recognizedby the disposal group held for sale, the book value of goodwill in the disposal group is offset first, and then thebook value of non-current assets in the disposal group is offset proportionally.
If the net amount of non-current assets held for sale or disposal group's fair value minus sales expensesincreases on the subsequent balance sheet date, the previously written-down amount will be restored and reversedwithin the amount of asset impairment loss recognized after being classified as held-for-sale, and the reversedamount will be included in the current profits and losses. The book value of offset goodwill shall not be reversed.
Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part ofthe investments of associated enterprises or joint ventures classified as held for sale shall be accounted for by theequity method for those classified as held for sale, while those retained (not classified as held for sale) shallcontinue to be accounted for by the equity method; When the Company loses significant influence on theassociated enterprises and joint ventures due to the sale, it shall stop using the equity method.
If a certain non-current asset or disposal group is classified as held-for-sale, but the classification conditionsof held-for-sale are no longer met, the Company will stop classifying it as held-for-sale and measure it accordingto the lower of the following two amounts:
① The book value of the asset or disposal group before it is classified as held-for-sale, and the amountadjusted according to the depreciation, amortization or impairment that should have been recognized withoutbeing classified as held-for-sale;
② Recoverable amount.
19.Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost, etc. TheCompany has measured the impairment loss based on the amount of expected credit losses in the next 12 monthsor the entire duration, based on whether the credit risk has increased significantly since the initial recognition.
20.Other Creditor's rights investment
For creditor's rights investment and other creditor's rights investment, the Company calculates the expected
credit loss according to the nature of the investment, the counterparty and various types of risk exposure andbased on the expected credit loss rate in the next 12 months or the whole duration.
21.Long-term account receivable
None
22.Long-term equity investments
Long-term equity investment includes equity investment in subsidiaries, joint ventures and associatedenterprises. If the Company can exert significant influence on the investee, it is an associated enterprise of theCompany.
(1) Determination of initial investment cost
Long-term equity investment forming business combination: the long-term equity investment obtained bybusiness combination under the same control shall be taken as the investment cost according to the book valueshare of the owner's equity of the combined party in the consolidated financial statements of the final controllingparty on the combination date; Long-term equity investment obtained by business combination not under the samecontrol shall be regarded as the investment cost of long-term equity investment according to the combination cost.
For long-term equity investment obtained by other means: For long-term equity investment obtained bypayment in cash, the actual purchase price is taken as the initial investment cost; For long-term equity investmentobtained by issuing equity securities, the fair value of issuing equity securities is taken as the initial investmentcost.
(2) Subsequent measurement and profit and loss recognition method
Investment in subsidiaries shall be accounted by cost method, unless the investment meets the conditions ofholding for sale; Investment in associated enterprises and joint ventures shall be accounted for by equity method.
For the long-term equity investment calculated by the cost method, except for the cash dividends or profitsthat have been declared but not yet issued and that included in the actual payment or consideration, the cashdividends or profits declared and distributed by the investee are recognized as investment income and included inthe current profits and losses.
If the initial investment cost of long-term equity investment accounted by equity method is greater than thefair value share of identifiable net assets of the investee, the investment cost of long-term equity investment shallnot be adjusted; If the initial investment cost is less than the fair value share of the identifiable net assets of theinvestee at the time of investment, the book value of the long-term equity investment shall be adjusted, and thedifference shall be included in the profit and loss of the current investment period.
In case of accounting by equity method, the investment income and other comprehensive income arerecognized respectively according to the share of net profits and losses and other comprehensive income realizedby the investee, and the book value of long-term equity investment is adjusted at the same time; According to theprofit or cash dividend declared and distributed by the investee, the part to be entitled to shall be calculated, andthe book value of long-term equity investment shall be reduced correspondingly; The investee adjusts the bookvalue of long-term equity investment for other changes in owner's equity except net profits and losses, othercomprehensive income and profit distribution and includes them in capital reserve (other capital reserve). Whenrecognizing the share of the net profit and loss of the investee, the fair value of identifiable assets of the investeeat the time of investment is taken as the basis, and the net profit of the investee is recognized after adjustmentaccording to the accounting policies and accounting periods of the Company.
If it can exert significant influence on the investee due to additional investment or implement joint controlbut does not constitute control, on the conversion date, the sum of the fair value of the original equity plus the newinvestment cost shall be taken as the initial investment cost calculated by the equity method instead. Thedifference between the fair value and book value of the original equity on the conversion date, as well as theaccumulated fair value changes originally included in other comprehensive income, are transferred to the currentprofits and losses accounted for by the equity method.If the joint control or significant influence on the investee is lost due to the disposal of some equityinvestments, the remaining equity after disposal shall be accounted for according to Accounting Standards forBusiness Enterprises No.22-Recognition and Measurement of Financial Instruments on the date of loss of jointcontrol or significant influence, and the difference between fair value and book value shall be included in thecurrent profits and losses. Other comprehensive income recognized by the original equity investment due to theadoption of the equity method shall be accounted for on the same basis as the direct disposal of related assets orliabilities by the investee when the equity method is terminated; Changes in other owners' equity related to theoriginal equity investment are transferred into current profits and losses.If the control over the investee is lost due to the disposal of part of equity investment, and the remainingequity after disposal can jointly control or exert significant influence on the investee, it shall be accounted foraccording to the equity method instead, and the remaining equity shall be regarded as being adjusted by the equitymethod when it is acquired; If the remaining equity after disposal cannot exercise joint control or exert significantinfluence on the investee, it shall be accounted for according to the relevant provisions of Accounting Standardsfor Business Enterprises No.22-Recognition and Measurement of Financial Instruments, and the differencebetween its fair value and book value on the date of loss of control shall be included in the current profits andlosses.
If the Company's shareholding ratio decreases due to capital increase of other investors, causing loss ofcontrol, but it can exercise joint control or exert significant influence on the investee, the share of net assetsincreased by the investee due to capital increase and share expansion shall be recognized according to the newshareholding ratio, and the difference between the original book value of long-term equity investmentcorresponding to the decreased shareholding ratio shall be included in the current profits and losses; Then,according to the new shareholding ratio, it is regarded as being adjusted by the equity method when theinvestment is obtained.
For unrealized internal transaction gains and losses between the Company and its associated enterprises andjoint ventures, the portion attributable to the Company shall be calculated according to the shareholding ratio, andinvestment gains and losses shall be recognized on the basis of offset. However, if the unrealized internaltransaction losses between the Company and the investee are the impairment losses of the transferred assets, theywill not be offset.
(3) Basis for determination of joint control and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement, andthe relevant activities of such arrangement must be unanimously agreed by the participants who share the controlrights before any decision is made. When judging whether there is common control, firstly, judge whether allparticipants or a combination of participants collectively control the arrangement, and secondly, judge whether thedecision-making of activities related to the arrangement must be unanimously agreed by the participants whocollectively control the arrangement. If all participants or a group of participants must act in concert to decide therelevant activities of an arrangement, it is considered that all participants or a group of participants collectivelycontrol the arrangement; If two or more participants can collectively control an arrangement, it does not constitutejoint control. When judging whether it is joint control, the protective rights entitled to are not considered.
Significant influence means that the investor has the right to participate in the decision-making on thefinancial and operating policies of the investee, but cannot control or jointly control the formulation of thesepolicies with other parties. When determining whether it can exert significant influence on the investee, theinfluence of the voting shares of the investee directly or indirectly held by the investor and the current executablepotential voting rights held by the investor and other parties shall be considered, including the influence of thecurrent convertible warrants, share options and convertible corporate bonds issued by the investee.
When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of thevoting shares of the investee, it is generally considered to have a significant influence on the investee, unless thereis clear evidence that it cannot participate in the production and operation decisions of the investee under suchcircumstances, in which case it does not have a significant influence; When the Company owns less than 20%(excluding) of the voting shares of the investee, it is generally not considered to have a significant influence on theinvestee, unless there is clear evidence that it can participate in the production and operation decisions of theinvestee under such circumstances, in which case it has a significant influence.
(4) Equity investment held for sale
If all or part of the equity investment in an associated enterprise or joint venture is classified as assets heldfor sale, please refer to Note III. 13 for relevant accounting treatment.
For the remaining equity investments that are not classified as assets held for sale, the equity method isadopted for accounting treatment.
If the equity investment in an associated enterprise or joint venture that has been classified as held for sale nolonger meets the classification conditions of assets held for sale, the equity method shall be used for retrospectiveadjustment from the date that it is classified as assets held for sale.
(5) Test method for impairment and accrual method for impairment provision
For investment in subsidiaries, associated enterprises and joint ventures, please refer to Note III. 21 for theaccrual method for impairment provision.
23.Investment real estate
The measurement mode of investment propertyThe company shall adopt the cost mode to measure the investment property.Depreciation or Amortization Method
Investment real estate refers to real estate held for rent or capital appreciation, or both. The Company'sinvestment real estate includes leased land use rights, land use rights transferred after holding and preparing forappreciation, and leased buildings.
The Company's investment real estate is initially measured according to the cost at the time of acquisition,and depreciation or amortization is accrued on schedule according to the relevant provisions of fixed assets orintangible assets.
For investment real estate that is subsequently measured by cost model, please refer to Note III. 21 for theaccrual method of asset impairment.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment realestate after deduction of its book value and related taxes shall be included in the current profits and losses.
24.Fixed assets
(1) Recognition conditions of fixed assets
The Company's fixed assets refer to tangible assets held for the production of commodities, provision of laborservices, leasing or operation and management, with a service life exceeding one fiscal year. Only when theeconomic benefits related to the fixed assets are likely to flow into the enterprise and the cost of the fixed assetscan be measured reliably, can the fixed assets be recognized.The fixed assets of the Company are initially measured according to the actual cost at the time of acquisition.For impairment test methods and impairment provision methods of fixed assets, see this in "Section X FinancialReport V. Important Accounting Policies and Accounting Estimates 31. Long-term impairment of assets".At the end of each year, the Company rechecks the service life, estimated net salvage value anddepreciation method of fixed assets.If the estimated service life is different from the original estimate, the service life of fixed assets shall beadjusted; If the estimated net salvage value is different from the original estimate, the estimated net salvage valueshall be adjusted. Major repair cost，The major repair cost incurred by the Company in carrying out regularinspections of fixed assets, if there is conclusive evidence showing that they meet the conditions for recognition offixed assets, shall be included in the cost of fixed assets, while those that do not meet the conditions forrecognition of fixed assets shall be included in the profits and losses of the current period. Fixed assets shall bedepreciated during the interval between regular overhaul.
(2) The method for depreciation
| Category | The method for depreciation | Expected useful life（Year） | Estimated residual value | Depreciation |
| House and Building- Production | Straight-line method | 35 | 4.00 | 2.74 |
| House and Building-Non- Production | Straight-line method | 40 | 4.00 | 2.40 |
| Decoration of Fixed assets | Straight-line method | 10 | 10.00 | |
| Machinery and equipment | Straight-line method | 10-14 | 4.00 | 9.6-6.86 |
| Transportation equipment | Straight-line method | 8 | 4.00 | 12.00 |
| Electronic equipment | Straight-line method | 8 | 4.00 | 12.00 |
| Other equipment | Straight-line method | 8 | 4.00 | 12.00 |
(3)Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases whenthey meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of the leased
assets shall be transferred to the Company.② The Company has the option right to purchase the leased assets, andthe concluded purchase price is expected to be far lower than the fair value of the leased assets when exercisingthe option right. Therefore, the exercise of this option right by the Company can be determined reasonably on thestarting date of the lease.③ Even though the ownership of the assets is not transferred, the lease term accounts formost of the service life of the leased assets.④ The present value of the minimum lease payment of the Companyon the lease start date is almost equal to the fair value of the leased assets on the lease start date.⑤ In case ofspecial properties of the leased assets and no large alteration, only the Company can use them. Fixed assets leasedby finance lease shall be recorded at the lower of the fair value of the leased assets on the lease start date and thepresent value of the minimum lease payment. The minimum lease payment is taken as the recorded value oflong-term payables, and the difference is taken as unrecognized financing expenses. Initial direct expenses such ashandling fees, attorney fees, travel expenses, stamp duty, etc., which occur during the lease negotiation andsigning of the lease contract, are included in the value of the leased assets. Unrecognized financing expenses areamortized by the effective interest rate method in each period of the lease term.Fixed assets leased by financingshall be depreciated by adopting policies consistent with the self-owned fixed assets. If it can be reasonablydetermined that the ownership of the leased asset will be acquired upon the expiration of the lease term,depreciation shall be accrued within the serviceable life of the leased asset; If it is impossible to reasonablydetermine that the ownership of the leased asset can be acquired at the expiration of the lease term, depreciationshall be accrued within the shorter of the lease term and the serviceable life of the leased asset.
25.Construction in progress
The cost of construction in progress of the Company is determined according to the actual projectexpenditure, including all necessary project expenditures incurred during the construction period, borrowing coststhat should be capitalized before the project reaches the intended usable state, and other related expenses.
Construction in progress is transferred to fixed assets when it reaches the scheduled usable state.
See Note III. 21 for the method of depreciation of assets in construction in progress.
26.Borrowing costs
(1) Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributed to the purchase, construction orproduction of assets that meet the capitalization conditions, they will be capitalized and included in the relevantasset costs; Other borrowing costs, when incurred, are recognized as expenses according to the amount incurred,and included in current profits and losses. Borrowing costs shall be capitalized if they meet the followingconditions at the same time:
① Asset expenditure has already occurred, including the expenditure incurred in the form of payment in cash,transfer of non-cash assets or assumption of interest-bearing debts for the purchase, construction or production ofassets that meet the capitalization conditions;
② Borrowing costs have already occurred;
③ The purchase, construction or production activities necessary to make the assets reach the intended usableor saleable state have started.
(2) Capitalization period of borrowing costs
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization acquired,constructed or produced by the Company reach the intended usable or saleable state. Borrowing costs incurredafter the assets in line with the capitalization conditions reach the intended usable or saleable state shall berecognized as expenses according to the amount incurred when they occur, and shall be included in current profits
and losses.If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase,construction or production, and the interruption lasts exceeds 3 months, the capitalization of borrowing costs shallbe suspended; Borrowing costs during normal interruption period continue to be capitalized.
(3) Capitalization rate of borrowing costs and calculation method of capitalization amountThe interest expenses actually incurred in the current period of special borrowing shall be capitalized afterdeducting the interest income from the unused borrowing funds deposited in the bank or the investment incomefrom temporary investment; The capitalization amount of general borrowings is determined by multiplying theweighted average of the accumulated asset expenditure over the special loan by the capitalization rate of theoccupied general borrowings. Capitalization rate is calculated and determined according to the weighted averageinterest rate of general borrowings.During the capitalization period, all the exchange differences of special borrowings in foreign currency arecapitalized; Exchange differences of general borrowings in foreign currency are included in current profits andlosses.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
None
30.Intangible assets
The intangible assets of the Company include land use rights, proprietary technology and software.Intangible assets are initially measured at cost, and their service life is analyzed and judged when they areacquired. If the service life is limited, the intangible assets shall be amortized within the expected service life bythe amortization method that can reflect the expected realization mode of the economic benefits related to theassets from the time when they are available for use; If it is impossible to reliably determine the expectedrealization mode, they shall be amortized by straight-line method; Intangible asset\s with uncertain service life arenot amortized.Amortization methods of intangible assets with limited service life are as follows:
| Items | Useful life（year） | Amortization method | Notes |
| Land use right | 50 | Straight | |
| Special technology | 15 | Straight | |
| Software | 5 | Straight |
At the end of each year, the Company rechecks the service life and amortization method of intangible assets
with limited service life, adjusts the original estimate if it is different from the previous estimate, and handles thechange according to the accounting estimate.
On the balance sheet date, if it is estimated that an intangible asset can no longer bring future economicbenefits to the enterprise, all the book value of the intangible asset will be transferred to the current profits andlosses.
（2）Accounting Policy of Internal Research and Development Expenditure
The Company divides the expenditure of internal research and development projects into expenditures inresearch stage and expenditures in development stage.
Expenditures in research stage are included in current profits and losses when they occurs.
Expenditures in development stage can only be capitalized if they meet the following conditions: it istechnically feasible to complete the intangible assets so that they can be used or sold; There is the intention tocomplete the intangible assets and use or sell them; The ways in which intangible assets generate economicbenefits, including those that can prove the existence of market for products produced by the intangible assets orthe existence of market for the intangible assets themselves, and that for the intangible assets that will be usedinternally, their usefulness can be proved; There are sufficient technical, financial and other resources to completethe development of the intangible assets and the ability to use or sell the intangible assets; Expendituresattributable to the development stage of the intangible assets can be measured reliably. Development expendituresthat do not meet the above conditions are included in current profits and losses.
The research and development project of the Company will enter the development stage after the aboveconditions are met and a project is approved through technical feasibility and economic feasibility study.
Capitalized expenditures in development stage are listed as development expenditures on the balance sheet,and are converted into intangible assets from the date when the project reaches the intended purpose.
31.Long-term Assets Impairment
The asset impairment of long-term equity investment of subsidiaries, associated enterprises and jointventures, investment real estate, fixed assets, construction in progress, intangible assets, goodwill, etc. (exceptinventory, investment real estate measured according to fair value model, deferred income tax assets and financialassets) shall be determined according to the following methods:
On the balance sheet date, judge whether there is any sign of possible impairment of assets. If there is anysign of impairment, the Company will estimate its recoverable amount and conduct impairment test. The goodwillformed by business combination, intangible assets with uncertain service life and intangible assets that have notyet reached the usable state are tested for impairment every year regardless of whether there is any sign ofimpairment.
The recoverable amount is determined according to the higher of the net amount of the fair value of the assetminus the disposal expenses and the present value of the estimated future cash flow of the asset. The Companyestimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverableamount of a single asset, the recoverable amount of the asset group shall be determined based on the asset groupto which the asset belongs. The identification of asset group is based on whether the main cash inflow generatedby asset group is independent of cash inflow of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company will writedown its book value to the recoverable amount, and the written-down amount will be included in the current
profits and losses, and the corresponding asset impairment provision will be accrued at the same time.
As far as the impairment test of goodwill is concerned, the book value of goodwill formed by businesscombination is amortized to relevant asset groups according to a reasonable method from the acquisition date; If itis difficult to amortize to the related asset group, it shall be amortized to the related asset group portfolio. Therelated asset group or asset group portfolio is one that can benefit from the synergy effect of business combination,and is not larger than the reporting segment determined by the Company.In the impairment test, if there are signs of impairment in the asset group or asset group portfolio related togoodwill, firstly, the asset group or asset group portfolio without goodwill shall be tested for impairment, therecoverable amount shall be calculated, and the corresponding impairment loss shall be recognized. Thenimpairment test shall be carried out on the asset group or asset group portfolio containing goodwill, and its bookvalue shall be compared with the recoverable amount. If the recoverable amount is lower than the book value, theimpairment loss of goodwill shall be recognized.Once the asset impairment loss is recognized, it will not be reversed in future accounting periods.
32.Long-term deferred expenses
The long-term deferred expenses incurred by the Company are priced at actual cost and amortized equallyaccording to the expected benefit period. For long-term deferred expense items that cannot benefit futureaccounting periods, all their amortized values are included in current profits and losses.
33.Contract liabilities
Contract liabilities refer to the obligation of the Company to transfer goods to customers for the received orreceivable consideration from customers. If the customer has paid the contract consideration or the Company hasobtained the unconditional collection right before the Company transfers the goods to the customer, the Companywill list the received or receivable amount as the contract liability at the earlier of the actual payment made by thecustomer and the due date for payment. Contract assets and liabilities under the same contract are listed in netamount, while contract assets and liabilities under different contracts are not offset. 39. Income
34.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period when employees provide services, the Company recognizes the actual wages,bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance premiumsand maternity insurance premiums paid for employees and housing provident funds as liabilities, and includesthem in current profits and losses or related asset costs. If the liability is not expected to be fully paid withintwelve months after the end of the annual reporting period when employees provide relevant services, and thefinancial impact is significant, the liability will be measured at the discounted amount.
2. Accounting Treatment Method of Severance Benefit Plans
After-service benefit plan includes defined contribution plan and defined benefit plans. Where the set depositplan refers to the post-employment benefits plan in which the enterprise no longer undertakes further paymentobligations after paying fixed fees to independent funds; Set benefit plan refers to the post-employment benefits
plan except the set deposit plan.Set deposit planThe set deposit plan includes basic old-age insurance, unemployment insurance and enterprise annuity plan,etc.
In addition to the basic old-age insurance, the Company establishes an enterprise annuity plan ("annuity plan")according to the relevant policies of the national enterprise annuity system, and employees can voluntarilyparticipate in the annuity plan. Moreover, the Company has no other significant social security commitmentsfor employees.During the accounting period when employees provide services, the amount that should be paid according tothe set deposit plan is recognized as a liability and included in the current profits and losses or related asset costs.Set benefit planFor set benefit plans, an actuarial valuation is conducted by an independent actuary on the annual balancesheet date, and the cost of benefit provision is determined by the expected cumulative benefit unit method. Theemployee remuneration cost caused by set benefit plans of the Company includes the following components:
① Service cost, including current service cost, past service cost and settlement gain or loss. Where: thecurrent service cost refers to the increase of the present value of set benefit plan obligations caused by theemployees providing services in the current period; Past service cost refers to the increase or decrease of thepresent value of set benefit plan obligations related to employee service in previous period caused by themodification of set benefit plans.
② The net interest of set benefit plan's net liabilities or net assets, including interest income of planned assets,interest expense of set benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of set benefit plans.
Unless other accounting standards require or allow employee benefit costs to be included in asset costs, theCompany will include the above items ① and ② in current profits and losses; Include item ③ in othercomprehensive income and such item will not be transferred back to profit or loss in the subsequent accountingperiod. When the original set benefit plan is terminated, all the parts originally included in other comprehensiveincome will be carried forward to undistributed profits within the scope of equity.
3. Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees, the employee remuneration liabilities arising fromthe dismissal benefits shall be recognized and included in the current profits and losses on the earlier of thefollowing dates: When the Company cannot unilaterally withdraw the dismissal benefits provided by thetermination of labor relations plan or layoff proposal; When the Company recognizes the costs or expenses relatedto the reorganization involving the payment of dismissal benefits.
If the employee's internal retirement plan is implemented, the economic compensation before the officialretirement date is the dismissal benefit. From the day when the employee stops providing services to the normalretirement date, the wages of the retired employees and the social insurance premiums paid will be included in thecurrent profits and losses at one time. Economic compensation after the official retirement date (such as normalpension) shall be treated as post-employment benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits provided by the Company to employees meet the conditions for the set
deposit plan, they shall be handled in accordance with the above-mentioned relevant provisions on the set depositplan. If it meets the set benefit plans, it shall be handled in accordance with the above-mentioned relevantregulations on set benefit plans, but the part of the related employee remuneration cost, which is "the changecaused by remeasurement of set benefit plan's net liabilities or net assets", shall be included in the current profitsand losses or related asset costs.
35.Lease liabilities
None
36. Estimated Liabilities
If the obligation related to contingencies meets the following conditions at the same time, the Company willrecognize it as estimated liabilities:
(1) Such obligation is the current obligation undertaken by the Company;
(2) The performance of such obligation is likely to lead to the outflow of economic benefits from theCompany;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfillrelevant current obligations, and factors such as risks, uncertainties and time value of money related tocontingencies are comprehensively considered. If the time value of money has great influence, the best estimate isdetermined by discounting the related future cash outflow. The Company rechecks the book value of the estimatedliabilities on the balance sheet date, and adjusts the book value to reflect the current best estimate.
If all or part of the expenses required to pay off the recognized estimated liabilities are expected to becompensated by a third party or other parties, the compensation amount can only be recognized as an asset when itis basically confirmed that it can be received. The recognized compensation amount shall not exceed the bookvalue of the recognized liabilities.
37. Share payment
(1) Types of share-based payment
The share-based payment of the Company is divided into equity-settled share-based payment andcash-settled share-based payment.
(2) Method for determining fair value of equity instruments
The fair value of equity instruments such as options granted by the Company with active market isdetermined according to the quoted price in the active market. The fair value of granted equity instruments such asoptions without active market is determined by option pricing model. The selected option pricing model considersthe following factors: A. The exercise price of options; B. The validity period of the option; C. The current priceof the underlying shares; D. Estimated volatility of share price; E. Expected dividend of shares; F. Risk-freeinterest rate within the validity period of the option.
(3) Basis for determining the best estimation of feasible equity instruments
On each balance sheet date during the waiting period, the Company makes the best estimate based on thelatest available follow-up information such as changes in the number of employees with feasible rights, andrevises the estimated number of equity instruments with feasible rights. On the vesting date, the final estimated
number of vesting rights and interests instruments shall be consistent with the actual number of vesting rights.
(4) Accounting treatment related to implementation, modification and termination of share-based paymentplan
Equity-settled share-based payment is measured at the fair value of equity instruments granted to employees.If the right is exercised immediately after the grant, the relevant costs or expenses shall be included in the fairvalue of equity instruments on the grant date, and the capital reserve shall be increased accordingly. If the rightscan be exercised only after the services within the waiting period are completed or the specified performanceconditions are met, on each balance sheet date within the waiting period, based on the best estimate of the numberof equity instruments available, the services obtained in the current period shall be included in the relevant costsor expenses and capital reserve according to the fair value on the grant date of equity instruments. After thevesting date, the recognized related costs or expenses and the total owner's equity will not be adjusted.
Equity-settled share-based payment shall be measured according to the fair value of liabilities calculated anddetermined on the basis of shares or other equity instruments undertaken by the Company. If the right is exercisedimmediately after the grant, the fair value of the liabilities assumed by the Company shall be included in therelevant costs or expenses on the grant date, and the liabilities shall be increased accordingly. For cash-settledshare-based payment that is feasible only after the service within the waiting period is completed or the specifiedperformance conditions are met, on each balance sheet date within the waiting period, based on the bestestimation of the feasibility and according to the fair value of the liabilities assumed by the Company, the servicesobtained in the current period are included in the costs or expenses and corresponding liabilities. On each balancesheet date and settlement date before the settlement of related liabilities, the fair value of liabilities shall bere-measured, and the changes shall be included in the current profits and losses.
When the Company modifies the share-based payment plan, if the fair value of the granted equityinstruments is increased by modification, the increase of the services obtained shall be recognized according to theincrease of the fair value of the equity instruments; If the number of granted equity instruments is increased bymodification, the fair value of the increased equity instruments will be recognized as the increase in servicesobtained accordingly. The increase of fair value of equity instruments refers to the difference between the fairvalues of equity instruments before and after modification on the modification date. If the total fair value ofshare-based payment is reduced by modification or the terms and conditions of the share-based payment plan aremodified in other ways that are unfavorable to employees, the accounting treatment of the obtained services willcontinue, as if with no changes unless the Company cancels some or all of the granted equity instruments.
During the waiting period, if the granted equity instruments are cancelled (except those cancelled due tonon-market conditions that do not meet the feasible rights conditions), the Company will treat the cancellation ofthe granted equity instruments as an accelerated exercise, and immediately record the amount to be recognized inthe remaining waiting period into the current profits and losses, and recognize the capital reserve at the same time.If the employee or other party can choose to meet the non-feasible right condition but fails to meet it during thewaiting period, the Company will treat it as a cancellation for granting equity instruments.
① Distinction between financial liabilities and equity instruments
According to the contract terms of the issued financial instruments and their economic essence, not only inlegal form, but also in combination with the definitions of financial assets, financial liabilities and equityinstruments, the Company classifies the financial instruments or their components as financial assets, financialliabilities or equity instruments at the time of initial recognition.
② Accounting treatment of other financial instruments such as preferred shares and perpetual bonds
The financial instruments issued by the Company are initially recognized and measured according to the
financial instrument standards; After that, interest is accrued or dividends are distributed on each balance sheetdate, which shall be handled according to relevant accounting standards for specific enterprises. That is, todetermine the accounting treatment of interest expense or dividend distribution of such instrument based on theclassification of issued financial instruments. For financial instruments classified as equity instruments, theirinterest expenses or dividend distribution are regarded as the profit distribution of the Company, and theirrepurchase and cancellation are treated as changes in equity; For financial instruments classified as financialliabilities, the interest expense or dividend distribution shall be treated according to the borrowing costs inprinciple, and the profit or loss arising from repurchase or redemption shall be included in the current profits andlosses.
When the Company issues financial instruments, the transaction expenses such as handling fees andcommissions, which are classified as debt instruments and measured in amortized cost, are included in the initialmeasurement amount of the issued instruments; If it is classified as an equity instrument, it will be deducted fromequity.
38. Other financial instruments such as preferred stocks and perpetual bondsNone
39. Revenue
Accounting policies adopted for income recognition and measurement
(1) General principles
The Company has fulfilled the performance obligation in the contract, that is, to recognize the revenue whenthe customer obtains the control right of related goods or services.
If the contract contains two or more performance obligations, the Company will amortize the transactionprice to each individual performance obligation according to the relative proportion of the individual selling priceof the goods or services promised by each individual performance obligation on the contract start date, andmeasure the income according to the transaction price amortized to each individual performance obligation.
When one of the following conditions is met, the Company will fulfill its performance obligations within acertain period of time; Otherwise, it performs the performance obligation at a certain time:
① The customer obtains and consumes the economic benefits brought by the Company's performance at thesame time of the its performance.
② Customers can control the goods under construction during the performance of the Company.
③ The commodities produced during the performance of the Company have irreplaceable uses, and theCompany has the right to collect payment for the performance part accumulated so far during the whole contractperiod.
For the performance obligations performed within a certain period of time, the Company recognizes theincome according to the performance progress within that period. If the performance progress cannot bereasonably determined, and the cost incurred of the Company is expected to be compensated, the income shall berecognized according to the amount of the cost incurred until the performance progress can be reasonablydetermined.
For obligations performed at a certain time, the Company shall recognize the income at the time when thecustomer obtains control of the relevant goods or services. When judging whether a customer has obtained controlof goods or services, the Company will consider the following signs:
① The Company has the current right to receive payment for the goods or services, that is, the customer hasthe current payment obligation for the goods or services.
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer hasthe legal ownership of the goods.
③ The Company has transferred the physical goods to the customer, that is, the customer has physicallytaken possession of the goods.
④ The Company has transferred the main risks and rewards on the ownership of the goods to the customer,that is, the customer has obtained the main risks and rewards on the ownership of the goods.
⑤ The customer has accepted the goods.
⑥ Other signs that the customer has obtained control of the goods.
The Company has transferred goods or services to customers and has the right to receive consideration (andthe right depends on other factors except the passage of time) as contract assets, and the contract assets aredepreciated on the basis of expected credit losses. The right of the Company to collect consideration fromcustomers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of theCompany to transfer goods or services to customers for received or receivable consideration from customers shallbe regarded as a contractual liability.Contract assets and contract liabilities under the same contract are listed in net amount. If the net amount isdebit balance, they are listed in "Contract Assets" or "Other Non-current Assets" according to their liquidity; If thenet amount is the credit balance, it shall be listed in "Contract Liabilities" or "Other Non-current Liabilities"according to its liquidity.
(2) Specific method
The specific method of revenue recognition of the Company is as follows:
Polarizer/Textile and garment sales contract:
Domestic sales: When the goods are delivered to the customer and the customer has accepted the goods, thecustomer obtains the control of the goods, and the Company recognizes the revenue.
Export: A. When the customer receives goods in China, the revenue recognition is the same as "RevenueRecognition for Domestic Sales"; B. When the delivery place of customer is outside the country, the Companymainly adopts FOB. When the goods are delivered from the warehouse and have been exported for customsdeclaration, the Company recognizes the revenue.
Revenue from property/accommodation services:
In the process of property/accommodation service provision, the Company recognizes revenue by stages.
The adoption of different business models in similar businesses leads to differences in accounting policies forincome recognitionNone
40.Government subsidy
Government subsidies are recognized when they meet the conditions attached to government subsidies andcan be received.
Government subsidies for monetary assets shall be measured according to the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be obtainedreliably, it shall be measured according to the nominal amount RMB 1.
Government subsidies related to assets refer to government subsidies obtained by the Company forpurchasing and building or forming long-term assets in other ways; In addition, as a government subsidy related toincome.Where the government documents do not specify the object of the subsidy, and the subsidy can formlong-term assets, the part of the government subsidies corresponding to the value of the assets shall be regarded asthe government subsidy related to the assets, and the rest shall be regarded as the government subsidies related tothe income; where it is difficult to be distinguished, government subsidies as a whole are treated as income-relatedgovernment subsidies.Government subsidies related to assets offset the book value of related assets, or are recognized as deferredincome and included in profits and losses by stages according to a reasonable and systematic method within theservice life of related assets. Government subsidies related to income, which are used to compensate related costsor losses that have occurred, are included in current profits and losses or offset related costs; If used tocompensate related costs or losses in later periods, they will be included in the deferred income, and included inthe current profits and losses or offset related costs during the recognition period of related costs or losses.Government subsidies measured in nominal amount are directly included in current profits and losses. TheCompany adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities are included in other income or offset related costs accordingto the nature of economic business. Government subsidies irrelevant to routine activities shall be included into thenon-operating receipt and disbursement.When the recognized government subsidy needs to be returned, if the book value of related assets is offsetduring initial recognition, the book value of assets will be adjusted; If there is a relevant deferred income balance,the book balance of the relevant deferred income will be offset, and the excess will be included in the currentprofits and losses; In other cases, it is directly included in the current profits and losses.For the discount interest of preferential policy loans, if the finance allocates the discount interest funds to thelending bank, the actually received loan amount is taken as the recorded value of the loan, and the borrowing costsare calculated according to the loan principal and preferential policy interest rate. If the finance directly allocatesthe discount interest funds to the Company, the discount interest will offset the borrowing costs.
41.The Deferred Tax Assets / The deferred Tax Liabilities
Income tax includes current income tax and deferred income tax. Except for adjusted goodwill arising frombusiness combination or deferred income tax related to transactions or matters directly included in owner's equity,they are all included in current profits and losses as income tax expenses.
According to the temporary difference between the book value of assets and liabilities and the tax basis onthe balance sheet date, the Company adopts the balance sheet liability method to confirm deferred income tax.
All taxable temporary differences are recognized as related deferred income tax liabilities, unless the taxabletemporary differences are generated in the following transactions:
(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from transactionswith the following characteristics: the transaction is not a business combination, and the transaction does notaffect accounting profits or taxable income when it occurs;
(2) For taxable temporary differences related to investments of subsidiaries, joint ventures and associatedenterprises, the time for the temporary differences to be reversed can be controlled and the temporary differenceswill probably not be reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax deductions that can be carried forward to
later years, the Company shall recognize the deferred income tax assets arising therefrom to the extent that it islikely to obtain the future taxable income used to offset the deductible temporary differences, deductible lossesand tax deductions, unless the deductible temporary differences are generated in the following transactions:
(1) The transaction is not a business combination, and it does not affect accounting profit or taxable incomewhen the transaction occurs;
(2) For deductible temporary differences related to investments of subsidiaries, joint ventures and associatedenterprises, corresponding deferred income tax assets are recognized if the following conditions are met at thesame time: temporary differences are likely to be reversed in the foreseeable future, and taxable income used tooffset the deductible temporary differences is likely to be obtained in the future.
On the balance sheet date, the Company measures deferred income tax assets and deferred income taxliabilities according to the applicable tax rate during the expected period of recovering the assets or paying off theliabilities, and reflects the income tax impact of the expected way of recovering the assets or paying off theliabilities on the balance sheet date.
On the balance sheet date, the Company rechecks the book value of deferred income tax assets. If it isunlikely that sufficient taxable income will be obtained in the future period to offset the benefits of deferredincome tax assets, the book value of deferred income tax assets will be written down. When sufficient taxableincome is likely to be obtained, the written-down amount shall be reversed.
42.Lease
1. Accounting Treatment Method of Operating Lease
(1) The Company serves as the lessor
(1) During the operating lease, the company recognizes the lease receipts as rental income by straight-line methodor other systematic and reasonable methods in each period of the lease term. The initial direct expenses incurred inconnection with the operating lease are capitalized, allocated on the same basis as the rental income recognitionduring the lease term, and included in the current profits and losses by stages. The variable lease payments relatedto operating leases that are not included in the lease receipts are included in the current profits and losses whenthey actually occur.
（2）In the financial lease, at the beginning date of the lease term, The Company takes the net lease investmentas the recorded value of the financial lease funds receivable and terminates confirming the financial leasing assets.The net value of the lease investment is the sum of the present value of the lease income not yet received on thestarting date of the lease period according to the interest rate contained in the lease.The Company calculates andrecognizes the interest income for each period of the lease period at fixed periodic interest rates.
(2) The Company serves as the lessee
On the start date of the lease term, the company shall confirm the right to use assets and lease liabilities forthe lease. The right to use assets are initially measured according to cost, including the initial measurementamount of lease liabilities, paid lease payment amount, initial direct expenses, and the estimated costs fordismantling and removing the leased assets, restoring the leased assets' site or restoring the leased assets to theagreed state in the lease terms. Lease liabilities are initially measured according to the present value of unpaidlease payments on the start date of the lease term, including fixed payments, variable lease payments, exerciseprice of purchase options, payments required to exercise lease termination options, and payments expected to beissued according to the residual value of guarantees provided by the company. When calculating the present value
of lease payments, the company shall adopt the lease inclusive interest rate as the discount rate. If it is impossibleto determine the included interest rate of the lease, the company's incremental borrowing rate shall be used as thediscount rate.
The company uses the straight-line method to depreciate the right-to-use assets, and calculates the interestexpense of the lease liabilities in each period of the lease term according to the fixed periodic interest rate. Thevariable lease payments that are not included in the measurement of lease liabilities are included in the currentprofits and losses or related asset costs when they actually occur.
For short-term leases and low-value asset leases, the company does not recognize the right-to-use assets andlease liabilities, and records the relevant lease payments into the current profits and losses or related asset costsaccording to the straight-line method or other systematic and reasonable methods in each period of the lease term.
2. Accounting Treatment Method of Finance Lease
43. Other important accounting policies and accounting estimates
(1)Change of main accounting policies
Accounting policy changes caused by implementation of new financial instrument standards
（2） Changes in accounting estimates
No significant changes in accounting estimates have occurred in the current period.
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
| The content and reason for change of accounting policy | Approval process | Remarks |
| In order to adapt to the development of market economy, it standardizes the accounting treatment of related economic business and improves the quality of accounting information. On December 7, 2018, the Ministry of Finance issued the Notice on Revision and Issuance of Accounting Standards for Business Enterprises No.21-Leasing (CS [2018] No.35) (hereinafter referred to as the "New Leasing Standards"). According to the regulations, the Company will implement the New Leasing Standards from January 1, 2021 and adjust the relevant contents of accounting policies. | The examined and Adopted at the 2nd meeting of the 8th Board of Directors | http://www.cninfo.com.cn On March 12,2021(Announcement No.:2021-12) |
（2）Change of main accounting estimations
□ Applicable √Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases from year 2021Applicable
Whether need to adjust the balance sheet account at the beginning of the year
□ Yes √ No
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any NewStandards Governing Financial Instruments or Leases from year 2021
□ Applicable √ Not applicable
45.Other
NoneVI. Taxes of the Company
1. Main taxes categories and tax rate
| Taxes | Tax references | Applicable tax rates |
| VAT | The taxable turnover | 13%,6%,5% |
| City construction tax | Turnover tax to be paid allowances | 7% |
| Business income tax | Turnover tax to be paid allowances | 25%,20%,16.5%,15% |
| Education surcharge | Turnover tax to be paid allowances | 3% |
| Local education surcharge | Turnover tax to be paid allowances | 2% |
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
| Name of taxpayer | Income tax rates |
| Shenzhen Textile (Holdings) Co., Ltd | 25% |
| SAPO Photoelectric Co., Ltd. | 15% |
| Shenzhen Lisi Industrial Co., Ltd. | 20% |
| Shenzhen Shenfang Real Estate Management Co., Ltd. | 20% |
| Shenzhen Huaqiang Hotel | 20% |
| Shenzhen Beauty Century Garment Co., Ltd. | 20% |
| Shenzhen Shenfang Sungang Real estate Management Co.,Ltd. | 20% |
| Shenzhen Textile Imports & Exports Co., Ltd. | 25% |
| Shengtou （HK）Co., Ltd. | 16.5% |
2. Tax preference
(1) SAPO Photoelectric Co., Ltd., the subsidiary company of our company, has been qualified as national high-techenterprise since 2019 ,High-tech and enterprise certificate No.: GR201944205666 ,The certificate is valid forthree years, The enterprise income tax rate of this year is 15%.
3.Other
NoneVII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash at hand | 4,054.12 | 4,127.10 |
| Bank deposit | 182,575,694.25 | 271,085,025.10 |
| Other monetary funds | 78,864,015.85 | 7,998,084.75 |
| Total | 261,443,764.22 | 279,087,236.95 |
| Including : The total amount of deposit abroad | 6,069,241.21 | 7,829,822.78 |
Other noteNote: At the end of the period, RMB8.450，000 of other monetary funds of the Company is the L/C securitydeposit（This part is not regarded as end-of-period cash and cash equivalents when preparing cash flows）, exceptfor which there is no mortgage, pledge or freezing, or money deposited abroad with restricted repatriation.
2. Transactional financial assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Financial assets measured at their fair values and with the variation included in the current profits and losses | 648,882,159.51 | 684,617,260.06 |
| Including： | ||
| Structure deposit | 160,695,872.76 | 200,536,575.34 |
| Monetary fund | 488,186,286.75 | 484,080,684.72 |
| Including | ||
| Total | 648,882,159.51 | 684,617,260.06 |
Other noteNote
3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
| Items | Year-end balance | Year-beginning balance |
| Commercial acceptance | 5,231,381.74 | 16,813,657.28 |
| Total | 5,231,381.74 | 16,813,657.28 |
In RMB
| Category | Amount in year-end | Balance Year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Of which： | ||||||||||
| Accrual of bad debt provision by portfolio | 5,257,670.09 | 100.00% | 26,288.35 | 0.50% | 5,231,381.74 | 16,898,148.02 | 100.00% | 84,490.74 | 0.50% | 16,813,657.28 |
| Of which： | ||||||||||
| Total | 5,257,670.09 | 100.00% | 26,288.35 | 0.50% | 5,231,381.74 | 16,898,148.02 | 100.00% | 84,490.74 | 0.50% | 16,813,657.28 |
Accrual of bad debt provision by single item:： Not applicablePortfolio accrual items: 26,288.35
In RMB
| Name | Amount in year-end | ||
| Book Balance | Bad debt provision | Proportion(%) | |
| Commercial acceptance | 5,257,670.09 | 26,288.35 | 0.50% |
| Total | 5,257,670.09 | 26,288.35 | -- |
Description of determining the combination basis: it is divided into bank acceptance bills and commercialacceptance bills according to the subject of bill acceptance.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Commercial acceptance | 84,490.74 | 58,202.39 | 26,288.35 | |||
| Total | 84,490.74 | 58,202.39 | 26,288.35 | |||
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3）The current accounts receivable write-offs situation
Not applicable
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period andnot expired yet on the date of balance sheet
In RMB
| Items | Amount derecognized at the end of the period | Amount not yet derecognized at the end of the period |
| Commercial acceptance | 172,361,552.75 | |
| Total | 172,361,552.75 |
（5）Accounts receivable financing transferred to accounts receivable by the Company at the end of theperiod due to failure of the drawer to performNot applicable
（6）The Company had no accounts receivable financing actually written off in the periodNone
5. Account receivable
(1)Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year-begin | ||||
| Book balance | Bad debt provision | Book | Book balance | Bad debt provision | Book value | |
| Amount | Proportion(%) | Amount | Proportion(%) | value | Amount | Proportion(%) | Amount | Proportion(%) | ||
| Accrual of bad debt provision by single item | 12,610,585.09 | 2.19% | 12,610,585.09 | 100.00% | 0.00 | 20,641,002.24 | 3.52% | 13,552,865.25 | 65.66% | 7,088,136.99 |
| Including： | ||||||||||
| Accrual of bad debt provision by portfolio | 564,115,491.98 | 97.81% | 25,187,555.79 | 4.46% | 538,927,936.19 | 565,279,517.47 | 96.48% | 25,057,436.56 | 4.43% | 540,222,080.91 |
| Including： | ||||||||||
| Total | 576,726,077.07 | 100.00% | 37,798,140.88 | 6.55% | 538,927,936.19 | 585,920,519.71 | 100.00% | 38,610,301.81 | 6.59% | 547,310,217.90 |
Accrual of bad debt provision by single item: 12,610,585.09 yuan
In RMB
| Name | Closing balance | |||
| Book balance | Bad debt provision | Proportion | Reason | |
| Dongguan Yaxing Semiconductor Co., Ltd. | 2,797,016.81 | 2,797,016.81 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Dongguan Fair LCD Co., Ltd. | 1,698,130.18 | 1,698,130.18 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Guangdong Ruili Baolai Technology Co., Ltd. | 1,298,965.36 | 1,298,965.36 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Other | 6,816,472.74 | 6,816,472.74 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Total | 12,610,585.09 | 12,610,585.09 | -- | -- |
Accrual of bad debt provision by portfolio: 25,187,555.79 yuan
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Within 1 year | 563,427,233.72 | 24,992,228.10 | 4.44% |
| 1-2 years | 688,258.26 | 195,327.69 | 28.38% |
| Total | 564,115,491.98 | 25,187,555.79 | -- |
Notes of the basis of recognizing the group:
The combination of the ageing status of accounts receivable as a credit risk feature.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 563,427,233.72 |
| 1-2 years | 688,258.26 |
| 2-3 years | 118,021.31 |
| Over 3 years | 12,492,563.78 |
| 3-4 years | 2,589.73 |
| 4-5 years | 3,728.70 |
| Over 5 years | 12,486,245.35 |
| Total | 576,726,077.07 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by portfolio: | 25,057,436.56 | 130,119.23 | 25,187,555.79 | |||
| Accrual of bad debt provision by single item: | 13,552,865.25 | 942,280.16 | 12,610,585.09 | |||
| Total | 38,610,301.81 | 130,119.23 | 942,280.16 | 37,798,140.88 | ||
Of which the significant amount of the reversed or collected part during the reporting period :None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
| Name | Balance in year-end | Proportion(%) | Bad debt provision |
| First | 129,104,524.59 | 22.39% | 5,693,509.53 |
| Second | 70,686,914.82 | 12.26% | 3,117,292.94 |
| Third | 70,186,875.99 | 12.17% | 3,095,241.23 |
| Fourth | 48,871,933.32 | 8.47% | 2,155,252.26 |
| Fifth | 41,059,824.45 | 7.12% | 1,810,738.26 |
| Total | 359,910,073.17 | 62.41% |
（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement ofaccounts receivableNoneOther note：None
6.Receivable financing
In RMB
| Items | Closing balance | Opening balance |
| Note receivable | 50,548,060.18 | 102,051,314.08 |
| Total | 50,548,060.18 | 102,051,314.08 |
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Other noteSome subsidiaries of the Company discount and endorse some bank acceptance bills according to the needsof their daily fund management, therefore the bank acceptance bills of the subsidiaries are classified as financialassets measured at fair value with changes included in other comprehensive income.There is no single bank acceptance bill with impairment provision of the Company. On June 30, 2021, theCompany considered that there was no significant credit risk in the bank acceptance bills held by it, and therewould be no significant loss due to bank default.
7.Prepayments
(1) List by aging analysis:
In RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Proportion % | Amount | Proportion % | |
| Within 1 year | 70,098,948.11 | 100.00% | 14,934,263.03 | 88.35% |
| 1-2 years | 557,043.06 | 3.30% | ||
| 2-3 years | 540,748.42 | 3.20% | ||
| Over 3 years | 870,461.88 | 5.15% | ||
| Total | 70,098,948.11 | -- | 16,902,516.39 | -- |
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in timeOn June 30, 2021, there was no large prepayment with an accounting age of more than one year in the balance ofprepayment .
（2）The ending balance of Prepayments owed by the imputation of the top five parties
(2) The top five ending balances of prepayments collected according to prepaid objects totaled RMB35,254,897.71, accounting for 50.29 % of the total closing balances of prepaymentsOther note：None
8.Other receivable
In RMB
| Items | Closing balance | Opening balance |
| Other accounts receivable | 108,479,055.45 | 5,265,002.71 |
| Total | 108,479,055.45 | 5,265,002.71 |
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
As of June 30,2021,No overdue interest3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable3）Bad debt provision
□ Applicable √ Not applicable
Other note
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Customs bond | 110,021,440.70 | |
| Deposit | 1,193,736.70 | 2,585,585.87 |
| Unit account | 17,293,811.80 | 16,369,395.10 |
| Export rebate | 1,024,147.96 | 1,658,146.29 |
| Reserve fund and staff loans | 1,165,706.06 | 379,477.97 |
| Other | 795,538.05 | 2,069,761.14 |
| Total | 131,494,381.27 | 23,062,366.37 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2021 | 573,597.01 | 17,223,766.65 | 17,797,363.66 | |
| Balance as at January 1, 2021in current | —— | —— | —— | —— |
| Provision in the current period | 5,297,682.27 | 5,297,682.27 | ||
| Turn back in the current period | 79,720.11 | 79,720.11 | ||
| Balance as at June 30,2021 | 5,871,279.28 | 17,144,046.54 | 23,015,325.82 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 113,415,572.52 |
| 1-2 years | 542,382.95 |
| 2-3 years | 315,301.22 |
| Over 3 years | 17,221,124.58 |
| 3-4 years | 556,334.81 |
| 4-5 years | 1,806,460.64 |
| Over 5 years | 14,858,329.13 |
| Total | 131,494,381.27 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by single item | 17,223,766.65 | 79,720.11 | 17,144,046.54 | |||
| Accrual of bad debt provision by portfolio | 573,597.01 | 5,297,682.27 | 5,871,279.28 | |||
| Total | 17,797,363.66 | 5,297,682.27 | 79,720.11 | 23,015,325.82 | ||
Where the current bad debts back or recover significant amounts:None
(4) Other account receivables actually cancel after write-off
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Name | Nature | Year-end balance | Aging | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| First | Customs security deposit | 73,715,545.21 | Within 1 year | 56.06% | 3,685,777.26 |
| Second | Customs security deposit | 20,370,382.12 | Within 1 year | 15.49% | 1,018,519.11 |
| Third | Customs security deposit | 13,722,321.42 | Within 1 year | 10.44% | 686,116.07 |
| Fourth | Unit account | 11,389,044.60 | Over 5 year | 8.66% | 11,389,044.60 |
| Fifth | Unit account | 1,800,000.00 | 4-5 years | 1.37% | 1,800,000.00 |
| Total | -- | 120,997,293.35 | -- | 92.02% | 18,579,457.04 |
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of otheraccounts receivableNone
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industryNo
（1）Category of Inventory
In RMB
| Items | Closing book balance | Opening book balance | ||||
| Book balance | Provision for inventory impairment | Book value | Book balance | Provision for inventory impairment | Book value | |
| Raw materials | 354,292,224.02 | 17,187,649.60 | 337,104,574.42 | 258,191,196.82 | 13,788,646.60 | 244,402,550.22 |
| Goods in transit | 4,378,802.67 | 0.00 | 4,378,802.67 | 524,698.46 | 0.00 | 524,698.46 |
| The low - value consumables | 20,509.00 | 0.00 | 20,509.00 | 0.00 | 0.00 | 0.00 |
| Finished product | 135,033,441.82 | 31,107,924.48 | 103,925,517.34 | 132,780,479.72 | 43,914,789.90 | 88,865,689.82 |
| Semi-finished | 172,125,892.31 | 41,381,539.06 | 130,744,353.25 | 164,825,774.18 | 17,771,131.24 | 147,054,642.94 |
| Total | 665,850,869.82 | 89,677,113.14 | 576,173,756.68 | 556,322,149.18 | 75,474,567.74 | 480,847,581.44 |
（2）Inventory falling price reserves and reserves for impairment of contract performance costs
In RMB
| Items | Opening balance | Increased in current period | Decreased in current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Raw materials | 13,788,646.60 | 4,242,718.17 | 843,715.17 | 17,187,649.60 | ||
| Finished product | 43,914,789.90 | 7,098,293.08 | 19,905,158.50 | 31,107,924.48 | ||
| Semi-finished product | 17,771,131.24 | 41,287,058.88 | 17,676,651.06 | 41,381,539.06 | ||
| Total | 75,474,567.74 | 52,628,070.13 | 38,425,524.73 | 89,677,113.14 | ||
| Items | Specific basis for determining the net realizable value/remaining consideration and the cost to be incurred | Reversal or resale in current period Reason for provision for inventor |
| Raw materials | Net realizable value is lower than inventory cost | Use of relevant materials |
| Finished product | Net realizable value is lower than inventory cost | Sales of related finished products |
| Semi-finished product | Net realizable value is lower than inventory cost | Sales of related semi-finished products |
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalizedNone
（4）Description of amortization amount of contract performance cost in the current periodNone
10.Contract assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of contract assets is accrued according to the general model ofexpected credit loss:
□ Applicable √Not applicable
Provision for impairment of contract assets in the current periodNot applicable
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
Not applicable
13. Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| After the deduction of input VAT | 8,212,405.21 | 77,482,083.47 |
| Total | 8,212,405.21 | 77,482,083.47 |
Other note: None
14.Creditor's right investment
Not applicableLoss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
Not applicableLoss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Not applicableLoss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financialassetsNot applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement oflong-term accounts receivableNot applicable
17. Long-term equity investment
In RMB
| Investees | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Decrease in investment | Profits and losses on investments Recognized under the equity method | Other comprehensive income | Changes in other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Anhui Huapeng Textile Co.,Ltd. | 10,797,023.14 | 10,797,023.14 | 0.00 | ||||||||
| Shenzhen Guanhua Printing & Dyeing | 127,906,165.17 | -263,356.48 | 127,642,808.69 | ||||||||
| Co., Ltd. | |||||||||||
| Subtotal | 138,703,188.31 | 10,797,023.14 | -263,356.48 | 127,642,808.69 | |||||||
| 2. Affiliated Company | |||||||||||
| Shenzhen Changlianfa Printing & dyeing Company | 2,706,262.38 | 136,047.34 | 2,842,309.72 | ||||||||
| Jordan Garment Factory | 0.00 | ||||||||||
| Hongkong Yehui International Co., Ltd. | 6,519,686.54 | -285,403.98 | -4,045,320.86 | 2,188,961.70 | |||||||
| Subtotal | 9,225,948.92 | -149,356.64 | -4,045,320.86 | 5,031,271.42 | |||||||
| Total | 147,929,137.23 | 10,797,023.14 | -412,713.12 | -4,045,320.86 | 132,674,080.11 | ||||||
Other note :None
18. Other equity instruments investment
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fuao auto parts co., Ltd.（000030） | 8,790,765.62 | 10,129,390.84 |
| Shenzhen Dailishi Underwear Co., Ltd. | 12,315,939.61 | 12,315,939.61 |
| Union Development Group Co., Ltd. | 152,469,200.00 | 152,469,200.00 |
| Shenzhen Xinfang Knitting Co., Ltd. | 2,227,903.00 | 2,227,903.00 |
| Shenzhen South Textile Co., Ltd. | 13,464,994.09 | 13,464,994.09 |
| Total | 189,268,802.32 | 190,607,427.54 |
Itemized disclosure of the current non - trading equity instrument investment
In RMB
| Name | Recognized | Accumulating | Accumulating | Amount of other | Reasons for being | Reasons for other |
| dividend income | income | losses | comprehensive income transferred to retained earnings | measured at fair value and whose changes are included in other comprehensive income | comprehensive income transferred to retained earning | |
| Fuao auto parts co., Ltd.（000030） | 414,007.80 | 149,832.69 | Long-term holding | |||
| Shenzhen Dailishi Underwear Co., Ltd. | 500,000.00 | 9,756,083.35 | Long-term holding | |||
| Union Development Group Co., Ltd. | 208,000.00 | 149,869,200.00 | Long-term holding | |||
| Shenzhen Xinfang Knitting Co., Ltd. | 1,703,903.00 | Long-term holding | ||||
| Shenzhen South Textile Co., Ltd. | 11,964,994.09 | Long-term holding | ||||
| Jintian Industry（Group）Co., Ltd. | 14,831,681.50 | Long-term holding | ||||
| Shenzhen Jiafeng Textile Industry Co., Ltd. | 16,800,000.00 | Long-term holding |
Other note: None
19.Other non-current financial assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Financial assets measured at fair value with changes included in current profits and losses | 28,500,000.00 | 30,650,943.40 |
| Total | 28,500,000.00 | 30,650,943.40 |
Other note: None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
| Items | House, Building | Land use right | Construction in | Total |
| process | ||||
| I. Original price | ||||
| 1. Balance at period-beginning | 261,742,940.53 | 261,742,940.53 | ||
| 2.Increase in the current period | 2,135,449.63 | 2,135,449.63 | ||
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | 2,135,449.63 | 2,135,449.63 | ||
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 263,878,390.16 | 263,878,390.16 | ||
| II.Accumulated amortization | ||||
| 1.Opening balance | 151,170,468.61 | 151,170,468.61 | ||
| 2.Increased amount of the period | 3,433,551.69 | 3,433,551.69 | ||
| (1) Withdrawal | 3,433,551.69 | 3,433,551.69 | ||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 154,604,020.30 | 154,604,020.30 | ||
| III. Impairment provision | ||||
| 1. Balance at period-beginning | ||||
| 2.Increased amount of the period | ||||
| (1) Withdrawal | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out |
| 4. Balance at period-end | ||||
| IV. Book value | ||||
| 1.Book value at period -end | 109,274,369.86 | 109,274,369.86 | ||
| 2.Book value at period-beginning | 110,572,471.92 | 110,572,471.92 |
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
| Items | Book balance | Reason |
| Houses and Building | 9,130,371.32 | Unable to apply for warrants due to historical reasons |
Other note: None
21. Fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fixed assets | 745,921,085.85 | 790,183,905.38 |
| Total | 745,921,085.85 | 790,183,905.38 |
(1) List of fixed assets
In RMB
| Items | Houses & buildings | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1.Opening balance | 545,896,931.25 | 1,017,693,432.96 | 11,379,729.08 | 42,420,673.14 | 1,617,390,766.43 |
| 2.Increased amount of the period | 9,379,425.79 | 386,129.38 | 753,719.82 | 10,519,274.99 | |
| (1) Purchase | 9,379,425.79 | 386,129.38 | 753,719.82 | 10,519,274.99 | |
| (2) Transferred from construction in progress | |||||
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | 1,393,162.65 | 1,393,162.65 | |||
| （1）Disposal | 1,393,162.65 | 1,393,162.65 | |||
| 4. Balance at period-end | 545,896,931.25 | 1,027,072,858.75 | 11,765,858.46 | 41,781,230.31 | 1,626,516,878.77 |
| II. Accumulated depreciation | 159,918,391.99 | 630,517,504.87 | 3,217,030.86 | 27,084,284.60 | 820,737,212.32 |
| 1.Opening balance | 159,918,391.99 | 630,517,504.87 | 3,217,030.86 | 27,084,284.60 | 820,737,212.32 |
| 2.Increased amount of the period | |||||
| (1) Withdrawal | 9,863,865.90 | 42,870,923.16 | 500,574.54 | 1,382,104.27 | 54,617,467.87 |
| 3.Decrease in the reporting period | 1,133,192.60 | 1,133,192.60 | |||
| （1）Disposal | 1,133,192.60 | 1,133,192.60 | |||
| 4.Closing balance | 169,782,257.89 | 673,388,428.03 | 3,717,605.40 | 27,333,196.27 | 874,221,487.59 |
| III. Impairment provision | |||||
| 1.Opening balance | 6,373,080.81 | 96,567.92 | 6,469,648.73 | ||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | 95,343.40 | 95,343.40 | |||
| （1）Disposal | 95,343.40 | 95,343.40 | |||
| 4. Closing balance | 6,373,080.81 | 1,224.52 | 6,374,305.33 | ||
| IV. Book value | |||||
| 1.Book value of the period-end | 376,114,673.36 | 347,311,349.91 | 8,048,253.06 | 14,446,809.52 | 745,921,085.85 |
| 2.Book value of the period-begin | 385,978,539.26 | 380,802,847.28 | 8,162,698.22 | 15,239,820.62 | 790,183,905.38 |
(2) Fixed assets temporarily idled
Not applicable
(3) Fixed assets rented by finance leases
Not applicable
(4) Fixed assets without certificate of title completed
In RMB
| Items | Book Value | Reason |
| Houses and Building | 19,224,328.15 | Unable to apply for warrants due to historical reasons |
Other note
（5）Liquidation of fixed assets
Not applicable
22. Construction in progress
In RMB
| Items | Year-end balance | Year-beginning balance |
| Construction in progress | 1,567,417,773.55 | 1,301,750,141.12 |
| Total | 1,567,417,773.55 | 1,301,750,141.12 |
(1) List of construction in progress
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Industrialization project of polaroid for super large size TV (Line 7) | 1,563,030,177.22 | 1,563,030,177.22 | 1,301,693,689.12 | 1,301,693,689.12 | ||
| Other | 115,596.33 | 115,596.33 | 56,452.00 | 56,452.00 | ||
| Guangzhou Sharp RTP | 3,600,000.00 | 3,600,000.00 | ||||
| Medium water recovery & concentrated water treatment project | 672,000.00 | 672,000.00 | ||||
| Total | 1,567,417,773.55 | 1,567,417,773.55 | 1,301,750,141.12 | 1,301,750,141.12 |
（2）Changes of significant construction in progress
In RMB
| Name | Budget | Amount at year beginning | Increase at this period | Transferred to fixed assets | Other decrease | Balance in year-end | Proportion(%) | Progress of work | Capitalisation of interest accumulated balance | Including：Current amount of capitalization of interest | Capitalisation of interest ratio（%) | Source of funds |
| Industrialization project of polaroid for super large size TV (Line 7) | 1,874,770,000.00 | 1,301,693,689.12 | 261,336,488.10 | 1,563,030,177.22 | 83.37% | The project has been initially completed and entered the commissioning stage and is expected to be fixed in July. | 13,305,004.56 | 9,364,439.27 | 4.41% | Financial institution loans | ||
| Total | 1,874,770,000.00 | 1,301,693,689.12 | 261,336,488.10 | 1,563,030,177.22 | -- | -- | 13,305,004.56 | 9,364,439.27 | 4.41% | -- |
（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
Not applicable
26. Intangible assets
(1) Information
In RMB
| Items | Land use right | Patent right | Non-proprietary technology | Software | Total |
| I. Original price | |||||
| 1. Balance at period-beginning | 48,258,239.00 | 11,825,200.00 | 4,079,953.70 | 64,163,392.70 | |
| 2.Increase in the current period | |||||
| (1) Purchase | 830,853.16 | 830,853.16 | |||
| （2）Internal R & D | |||||
| （3）Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4. Balance at period-end | 48,258,239.00 | 11,825,200.00 | 4,910,806.86 | 64,994,245.86 |
| II.Accumulated amortization | |||||
| 1. Balance at period-beginning | 13,487,191.27 | 11,825,200.00 | 2,802,022.52 | 28,114,413.79 | |
| 2. Increase in the current period | |||||
| (1) Withdrawal | 445,782.66 | 386,890.74 | 832,673.40 | ||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4. Balance at period-end | 13,932,973.93 | 11,825,200.00 | 3,188,913.26 | 28,947,087.19 | |
| III. Impairment provision | |||||
| 1. Balance at period-beginning | |||||
| 2. Increase in the current period | |||||
| (1) Withdrawal | |||||
| 3.Decreased amount of the period | |||||
| （1）Disposal | |||||
| 4. Balance at period-end | |||||
| 4. Book value | |||||
| 1.Book value at period -end | 34,325,265.07 | 0.00 | 1,721,893.60 | 36,047,158.67 | |
| 2.Book value at period-beginning | 34,771,047.73 | 0.00 | 1,277,931.18 | 36,048,978.91 |
The proportion the intangible assets formed from the internal R&D through the Company amount the balance ofthe intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Not applicable
27. R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| The merger of enterprises | disposition | |||||
| SAPO Photoelectric | 9,614,758.55 | 9,614,758.55 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Shenzhen Shenzhen Textile Import & Export Co., Ltd. | 82,246.61 | 82,246.61 | ||||
| Total | 11,864,346.37 | 11,864,346.37 | ||||
（2）Impairment of goodwill
In RMB
| Investee | Balance in year-begin | Increased at this period | .Decreased at this period | Closing balance | ||
| Provision | disposition | |||||
| SAPO Photoelectric | 9,614,758.55 | 9,614,758.55 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Shenzhen Shenzhen Textile Import & Export | 82,246.61 | 82,246.61 | ||||
| Co., Ltd. | ||||||
| Total | 11,864,346.37 | 11,864,346.37 |
Information about an asset group or asset group portfolioNoneExplain the goodwill impairment test process, key parameters (such as forecast period growth rate at expectedfuture cash flow, stable period growth rate, profit margin, discount rate, forecast period, etc.) and the confirmationmethod of goodwill impairment lossNoneImpact of the goodwill impairment testNoneOther noteNone
29. Long term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Decoration fee | 111,541.85 | 367,476.91 | 26,192.06 | 452,826.70 | |
| Renovation fee | 1,264,954.74 | 483,312.49 | 369,303.19 | 1,378,964.04 | |
| Other | 1,500,064.94 | 129,296.00 | 55,901.52 | 1,573,459.42 | |
| Total | 2,876,561.53 | 980,085.40 | 451,396.77 | 3,405,250.16 |
Other note: None
30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
| Items | Balance in year-end | Balance in year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets depreciation reserves | 19,040,168.23 | 4,753,246.77 | 18,865,669.84 | 4,709,761.70 |
| Unattained internal sales profits | 2,468,270.77 | 375,736.99 | 2,413,307.05 | 361,996.06 |
| Restricted stock repurchase interest | 686,670.00 | 171,667.50 | 686,670.00 | 171,667.50 |
| Total | 22,195,109.00 | 5,300,651.26 | 21,965,646.89 | 5,243,425.26 |
(2)Details of the un-recognized deferred income tax liabilities
In RMB
| Items | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in fair value of investments in other equity instruments | 173,144,347.73 | 43,286,086.93 | 174,482,972.97 | 43,620,743.24 |
| The difference between the initial recognition cost and tax base of long-term equity investment of Guanhua Company | 62,083,693.36 | 15,520,923.34 | 62,083,693.36 | 15,520,923.34 |
| Total | 235,228,041.09 | 58,807,010.27 | 236,566,666.33 | 59,141,666.58 |
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
| Items | Trade-off between the deferred income tax assets and liabilities | End balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 5,300,651.26 | 5,243,425.26 | ||
| Deferred income tax liabilities | 58,807,010.27 | 59,141,666.58 |
(4)Details of income tax assets not recognized
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Deductible temporary difference | 141,755,471.97 | 122,887,462.20 |
| Deductible loss | 671,593,115.73 | 682,013,840.25 |
| Total | 813,348,587.70 | 804,901,302.45 |
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
| Year | Balance in year-end | Balance in year-begin | Remark |
| 2023 | 118,806,219.81 | 129,226,944.33 |
| 2024 | 148,095,898.11 | 148,095,898.11 | |
| 2025 | 83,287,153.64 | 83,287,153.64 | |
| 2026 | 120,820,767.06 | 120,820,767.06 | |
| 2028 | 22,594,586.97 | 22,594,586.97 | |
| 2029 | 100,351,965.47 | 100,351,965.47 | |
| 2030 | 77,636,524.67 | 77,636,524.67 | |
| Total | 671,593,115.73 | 682,013,840.25 | -- |
Other note: None31 .Other non-current assets
In RMB
| Items | Balance in year-end | Balance in year-begin | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| Certificate of deposit for more than 1 year | 70,000,000.00 | 70,000,000.00 | 70,064,383.56 | 70,064,383.56 | ||
| Other | 25,760,086.27 | 25,760,086.27 | 25,760,086.27 | 25,760,086.27 | ||
| Advance payment for equipment fund | 47,483,219.83 | 47,483,219.83 | ||||
| Total | 95,760,086.27 | 95,760,086.27 | 143,307,689.66 | 143,307,689.66 | ||
Other note: None
32. Short-term borrowings
（1）Categories of short-term loans
Not applicable
(2) Situation of Overdue Outstanding Short-Term Borrowing
Not applicable
33. Transactional financial liabilities
Not applicable
34. Derivative financial liability
Not applicable
35.Notes payable
In RMB
| Type | Balance in year-end | Balance in year-begin |
| Bank acceptance Bill | 3,982,302.62 | |
| Total | 3,982,302.62 |
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 277,064,977.26 | 325,354,275.46 |
| 1-2 years | 104,553.98 | 1,912,000.86 |
| 2-3 years | 1,916,676.43 | 96,543.25 |
| 3-4 years | 483,791.37 | 1,093,369.87 |
| 4-5 years | 0.00 | 37,402.40 |
| Over 5 years | 412,993.57 | 975,010.06 |
| Total | 279,982,992.61 | 329,468,601.90 |
(2) Significant advance from customers aging over one year
No Significant accounts payable that aged over one year
37.Advance account
(1) List of Advance account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 1,059,659.30 | 666,457.75 |
| 1-2 years | 2,236,912.00 | 2,236,912.00 |
| 2-3 years | ||
| Over 3 years | 639,024.58 | 639,024.58 |
| Total | 3,935,595.88 | 3,542,394.33 |
(2) Significant advance from customers aging over one year
None
38.Contract liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Goods | 21,271.21 | 279,631.27 |
| Total | 21,271.21 | 279,631.27 |
39.Payable Employee wage
(1) List of Payroll payable
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| I. Short-term employee benefits | 55,642,549.53 | 115,925,105.68 | 125,681,232.17 | 45,886,423.04 |
| II. Post-employment benefits | 7,352,379.85 | 7,352,379.85 | ||
| Total | 55,642,549.53 | 123,277,485.53 | 133,033,612.02 | 45,886,423.04 |
（2）Short-term remuneration
In RMB
| Items | Balance in year-begin | Increase in this period | decrease in this period | Balance in year-end |
| 1.Wages, bonuses, allowances and subsidies | 53,293,551.94 | 104,837,856.79 | 114,763,456.46 | 43,367,952.27 |
| 2.Employee welfare | 41,093.20 | 3,508,437.94 | 3,549,531.14 | |
| 3. Social insurance premiums | 1,291,947.29 | 1,291,947.29 | ||
| Including：Medical insurance | 1,068,467.75 | 1,068,467.75 | ||
| Work injury insurance | 99,849.64 | 99,849.64 | ||
| Maternity insurance | 123,629.90 | 123,629.90 | ||
| 4. Public reserves for housing | 3,403,584.93 | 3,403,584.93 | ||
| 5.Union funds and staff education fee | 2,307,904.39 | 2,883,278.73 | 2,672,712.35 | 2,518,470.77 |
| Total | 55,642,549.53 | 115,925,105.68 | 125,681,232.17 | 45,886,423.04 |
（3）Defined contribution plans listed
In RMB
| Items | Balance in year-begin | Increase in this period | decrease in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 6,138,507.41 | 6,138,507.41 | ||
| 2.Unemployment insurance | 134,866.25 | 134,866.25 | ||
| 3. Annuity payment | 1,079,006.19 | 1,079,006.19 | ||
| Total | 7,352,379.85 | 7,352,379.85 |
Other note：None
40.Tax Payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| VAT | 0.00 | 286,928.75 |
| Enterprise Income tax | 3,097,418.69 | 11,219,726.43 |
| Individual Income tax | 994,540.35 | 469,169.71 |
| City Construction tax | 36,029.34 | 48,751.30 |
| House property tax | 2,990,777.86 | 102,146.02 |
| Land use tax | 93,073.00 | 2,043.30 |
| Education surcharge | 24,299.42 | 33,386.49 |
| Stamp tax | 19,446.70 | 36,370.02 |
| Total | 186,280.84 | |
| Total | 7,441,866.20 | 12,198,522.02 |
Other noteNone
41.Other payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Other payable | 136,833,527.76 | 156,118,440.42 |
| Total | 136,833,527.76 | 156,118,440.42 |
（1) Interest payable
Not applicable
(2) Dividends payable
Not applicable
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Engineering Equipment fund | 40,477,970.75 | 32,713,413.76 |
| Unit account | 52,408,759.57 | 48,394,939.72 |
| Deposit | 35,255,520.72 | 36,130,306.12 |
| Restrictive stock repurchase obligation | 0.00 | 7,844,373.00 |
| Other | 8,691,276.72 | 31,035,407.82 |
| Total | 136,833,527.76 | 156,118,440.42 |
(2) Other significant accounts payable with aging over one year
Not applicable
42. Liabilities classified as holding for sale
Not applicable
43. Non-current liabilities due within 1 year
Not applicable
44.Other current liabilities
Not applicable
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Mortgage-guaranteed loan | 544,588,606.07 | 343,100,174.35 |
| Total | 544,588,606.07 | 343,100,174.35 |
Description of the long-term loan classification：NoneOther note,
46.Bond payable
（1）Bond payable
Not applicable
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock andperpetual capital securities that classify as financial liabilityNot applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable
（4）Other financial instruments that are classified as financial liabilities
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
（1）Statement of long-term payroll payable
Not applicable
（2）Change of defined benefit plans
Not applicable
50.Predicted liabilities
Not applicable
51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Government Subsidy | 110,740,322.21 | 4,888,300.00 | 8,394,811.46 | 107,233,810.75 | |
| Total | 110,740,322.21 | 4,888,300.00 | 8,394,811.46 | 107,233,810.75 | -- |
Details of government subsidies：
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-related or income-related |
| Grant funds for TFT-LCD polarizer industry project | 1,733,333.35 | 649,999.98 | 1,083,333.37 | Related to assets | ||||
| Grant funds for TFT-LCD polarizer | 1,000,000.00 | 250,000.02 | 749,999.98 | Related to assets |
| narrow line (line 5) project | ||||||||
| Subsidy fund of Shenzhen polarizing materials and technical engineering laboratory | 2,125,000.00 | 250,000.02 | 1,874,999.98 | Related to assets | ||||
| Import equipment and technical subsidy (Line 4) | 46,688.06 | 17,508.00 | 29,180.06 | Related to assets | ||||
| Import equipment and technical subsidy (Line 5) | 280,148.33 | 70,037.10 | 210,111.23 | Related to assets | ||||
| Grant from municipal R&D center (technical center) | 1,275,000.00 | 150,000.00 | 1,125,000.00 | Related to assets | ||||
| Matching funds of Shenzhen polarizing materials and technical engineering laboratory | 212,500.00 | 25,000.02 | 187,499.98 | Related to assets | ||||
| Matching funds for strategic emerging industry projects of the National Development and Reform | 99,999.98 | 25,000.02 | 74,999.96 | Related to assets |
| Commission | ||||||||
| 2012 Shenzhen encouraged the introduction of advanced technology import subsidy funds | 28,776.21 | 7,194.06 | 21,582.15 | Related to assets | ||||
| Grant for equipment purchase for Line 6 project | 11,250,000.00 | 750,000.00 | 10,500,000.00 | Related to assets | ||||
| Payment for production plant and equipment of Line 6 | 22,500,000.00 | 1,499,999.98 | 21,000,000.02 | Related to assets | ||||
| Innovation and venture funds for TFT-LCD polarizer phase II project (Line 6) | 375,000.00 | 25,000.02 | 349,999.98 | Related to assets | ||||
| Fund for key technology R&D and technical research project of optical compensation film for polarizer | 3,125,000.00 | 250,000.02 | 2,874,999.98 | Related to assets | ||||
| Funds for pilot projects of regional agglomeratio | 15,000,000.00 | 1,000,000.02 | 13,999,999.98 | Related to assets |
| n development of strategic emerging industries | ||||||||
| Special fund for strategic emerging industries and future development in Guangdong Province, the third batch of supporting programs in 2016 - supporting programs for national/provincial projects | 3,750,000.00 | 250,000.02 | 3,499,999.98 | Related to assets | ||||
| Polarization Industrialization Project for Super Large-sized TVs (Line 7) Central Budget Investment | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Research & development subsidy for key technologies of ultra-thin IPS polarizer for smart phone terminals | 2,000,000.00 | 2,000,000.00 | Related to assets | |||||
| Finance | 6,000,000.00 | 6,000,000.00 | Related to |
| committee of Shenzhen municipality (R&D of key technology of high-performance polarizer for large size display panel of 2018N007) | assets | |||||||
| Special fund subsidies agreement for improving the quality of atmospheric environment in Shenzhen | 1,084,575.43 | 247,465.76 | 837,109.67 | Related to assets | ||||
| Subsidy for special technical transformation investment projects for the doubling of technical transformation in 2020 | 178,916.67 | 9,499.98 | 169,416.69 | Related to income | ||||
| Old elevator renovation fund subsidies | 862,497.23 | 55,877.86 | 806,619.37 | Related to assets | ||||
| Technical renovation equipment subsidy for dyeing project | 130,000.00 | 32,500.00 | 97,500.00 | Related to assets | ||||
| Textile special funds | 285,714.25 | 71,428.58 | 214,285.67 | Related to assets |
| Energy saving transformation grant funds | 27,172.70 | 27,172.70 | Related to assets | |||||
| Subsidies for operation in lieu of training in Luohu District | 15,500.00 | 15,500.00 | Related to income | |||||
| Income-related government subsidies | 2,242,800.00 | 2,242,800.00 | Related to income | |||||
| Grant FOR the key technology R&D project of low color partial circular polarizer for AMOLED with fixed curvature of 2020N028 | 2,500,000.00 | 2,500,000.00 | Related to assets | |||||
| State subsidy for TFT-LCD polarizer phase II project (Line 6) | 7,500,000.00 | 500,000.00 | 7,000,000.00 | Related to assets |
Other note：
(1).According to the "Notice on National Development and Reform Commission to the General Office of thetextile project management of the special funds" (Faigaiban [2006]2841), on December 2006, the Companyreceived "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14years as asset depreciation period for amortization with the corresponding equipment in current period. Theamortization in accordance with the corresponding equipment, The other income in current period isRMB71,428.58, the ending balance of uncompleted amortization is RMB214,285.67 .
2. In accordance with the Notice of Forwarding the Reply of General Office of State Development and Reform
Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industryissued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Developmentand Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD of
SAPO Photoelectric into the special plan for strategic transformation and industrialization of color TV industry in2010 and appropriated national aid of RMB 10,000,000.00 to SAPO Photoelectric for the research anddevelopment in the process of the project of industrialization and the purchase of required software and hardwareequipment. On June 2012 and September 2013, the company received the national grants of RMB 10,000,000.00..According to the Notice of Issuing the Governmental Investment Plan for 2011 Regarding Demonstration Projectof High-tech Industrialization Including Specialized Services Such As Disaster Recovery of Financial InformationSystem issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012) No. 3), the Companyreceived subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet for TFT-LCD in April2012. Our company will use 10 years as asset depreciation period for amortization in current period.The otherincome in current period is RMB649,999.98. and the balance amount of unfinished final amortization is RMB1,083,333.37.
3. According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet,New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), theCompany received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizersheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according tothe depreciation period of relevant assets. The other income in current period is RMB250,000.02 and the balanceamount of unfinished final amortization is RMB749,999.98.
4. On October 2013, The company received the grants for the purchase of imported equipment and technology in2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to thedepreciation period of relevant assets.The other income in current period is RMB87,545.10 and the balanceamount of unfinished final amortization is RMB239,291.29.
5. On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCDpolarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The other income in current period is RMB25,000.02 and the balance amount ofunfinished final amortization is RMB74,999.96 .
6. On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCDpolarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The other income in current period is RMB25,000.02 and the balance amount ofunfinished final amortization is RMB187,499.98 .
7. According to the Approval of Application of SAPO Photoelectric for Project Funds for Shenzhen PolarizationMaterial and Technology Engineering Laboratory (Shen Fa Gai (2012) No. 1385), Shenzhen Polarization Materialand Technology Engineering Laboratory was approved to be established on the strength of SAPO Photoelectricwith total project investment of RMB 24,390,000.00. As approved by Shenzhen Municipal People's Government,this project was included in the plan for supporting the fourth group of enterprises with special fund for thedevelopment of strategic new industries in Shenzhen in 2012 (new material industry). According to the Notice ofIssuing the Plan for Supporting the Fourth Group of Enterprises with Special Fund for Development of StrategicNew Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241), the Company received subsidy of RMB5,000,000.00 on December 2012 for purchasing instruments and equipment and improving existing technologicalequipment and test conditions. The fund gap will be filled by the Company through raising funds by itself. the
Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The other income in current period is RMB250,000.02 and the balance amount of unfinished final amortizationis RMB1,874,999.98 .
8. According to the “Announcement on the Identification of Technology Centers of 24 Enterprises includingShenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research andDevelopment Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center ofSAPO has been regarded as 2012 annual municipal R&D center. In December 2013, the company has receivedthe funding subsidy of RMB3 million for the construction of the technical center. the Company planned toamortize the subsidy over 10 years according to the depreciation period of relevant assets. The Other income incurrent period is RMB150,000.00 and the balance amount of unfinished final amortization is RMB1,125,000.00.
9.On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB 1
43,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 yearsaccording to the depreciation period of relevant assets. The other income in current period is RMB7,194.06 andthe balance amount of unfinished final amortization is RMB21,582.15.
10. According to the "Shenzhen Municipal Development and Reform Commission Reply for SAPO application
for local matching funds of TFT-LCD polarizing film II project (Line 6) " (Shenzhen DRC [2013]No. 1771), thecompany obtained TFT-LCD polarizing film II project (line 6) local matching funds of RMB 15,000,000.00 inApril 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixedassets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, The other income incurrent period is RMB750,000.00 and the balance amount of unfinished final amortization is RMB10,500,000.00.
11. In December 2014, the company received innovation venture capital (matching funding category) for PingShan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB 500,000.00.TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in June2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 25,000.02 was included intoother incomes in the current period and the ending outstanding balance was RMB349,999.98.
12. On Jan. 2015, the company received RMB 5 million of grants for key technologyresearch and development projects of optical compensation film for polarizer from Shenzhen Scientific andTechnological Innovation Committee. The company has reached the expected date of use of the assets., theCompany planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The other income in current period is RMB250,000.02 and the balance amount of unfinished final amortization isRMB2,874,999.98.
13. According to "National Development and Reform Commission issued on industrial transformation andupgrading projects (2
ndindustrial restructuring) notify the central budget for 2014 investment plan" (NDRCInvestment [2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB10,000,000.00 in December 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available stateand transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets,RMB500,000.00元 was included into other incomes in the current period and the ending outstanding balance wasRMB7,000,000.00.
14. According to “Reply on Congregating Development in Emerging Industrial Area Strategic PilotImplement Scheme of Guangdong Province ”(Reform and Development Office High-Tech [2013] No.2552,On
December 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCDpolarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industriesand the future development of industrial matching funds, TFT-LCD polarizer Phase II project (Line 6) hit theexpected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years indepreciation of relevant assets, RMB1,250,000.04 was included into other incomes in the current period and theending outstanding balance was RMB17,499,999.96.
15. According to Reform and Development Commission of Shenzhen Municipality sending the notice of“Reply of National Reform and Development Office on Investing in Petrifaction and Medicine Project withinCentral Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and DevelopmentCommission of Shenzhen Municipality [2013]No.1449) , the Company received 30 million RMB of newproduction line of TFT-LCD polarizer project period II and equipment purchase subsidy in August2015 ,December 2015 and September 2016. TFT-LCD polarizer Phase II project (Line 6) hit the expectedavailable state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation ofrelevant assets, RMB 1,499,999.99 was included into other incomes in the current period and the endingoutstanding balance was RMB 21,000,000.02.
16. In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and 34,535.45 RMBon energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the Other income wasRMB0.00 at the current period, the ending balance without amortization was RMB27,172.70.
17. In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the companyreceived 160,800.00 yuan for the old elevator upgrade subsidy in 2018,which was apportioned according to thedepreciation period of the relevant assets. the Other income was RMB130,500.00 at the current period, the endingbalance without amortization was RMB856,336.67. Subsidiaries that run property management business weresubsidized by RMB 164,580.00 for updating and transforming old and obsolete elevators this year and thissubsidy was income-related; RMB55,877.85 was included into the operating income in the current period and theending outstanding balance was RMB806,619.37.
18. According to the Notice of the Ministry of Industry and Information Technology of the NationalDevelopment and Reform Commission for Releasing the Central Budgetary Investment Plan of the 2017 of theTechnical Transformation of the Electronic Information Industry (NDRC Investment {2017} No. 1649), thecompany received oversize TV for use in November 2017. In November 2017, the company received an centralbudgetary investment of RMB 30,000,000.00 of the oversized TV polarizer industry project. The company shalltransfer the deferred income to the current profit or loss for the period of depreciation from the date when therelevant assets are ready for their intended use.
19. In accordance with the development plans and policies of Shenzhen Municipality for Strategic emergingIndustries, the Management Measures of Shenzhen City on Funds for Scientific and Technological Research andDevelopment, the Management Measures of Shenzhen City on Science and Technology Plan Project and otherrelevant documents, Shenzhen Science and Technology Innovation Commission and SAPO Photoelectriccompleted the development of the key technology of the 20170535 ultra-thin polarizer used in IPS smart phoneterminal in the Shenzhen Science and Technology Plan issued by SFG [2017] No. 1447 document. In February2018, the company received funding from Shenzhen Science and Technology Innovation Commission of2,000,000 yuan for R & D. The company will transfer the deferred income to the current profit and loss accordingto the depreciation period from the date when the relevant assets reach the expected usable status.
20. According to Measures for Management of Science and Technology Research & Development Funds inShenzhen, Measures for Management of Projects in Shenzhen Municipal Science and Technology Program andother documents concerned, SAPO Photoelectric Co., Ltd. and Shenzhen Science and Technology InnovationCommittee entered into a Contract of Projects in Shenzhen Municipal Science and Technology Program throughconsultation to complete development of key techniques for high-performance polarizers for 2018N007 jumbodisplay panels in the program delivered in Shen Fa Gai [2018] No.324 document. The Company was granted witha financial subsidy of RMB 1,000,000.00 this year. The Company amortized and transferred the deferred incomeinto the current profit and loss by period of depreciation after relevant assets hit the expected available state.
21. According to the Measures of Shenzhen Municipality on Subsidy for Improving AtmosphericEnvironmental Quality (2018-2020) (SRHG [2018] No.2), in December 2019, the Company received a subsidy of1,033,507.00 yuan from Shenzhen Municipal Human Settlements Committee. The Company completed thetransformation of the relevant assets into fixed assets in December 2019. The Company will allocate the relevantassets according to their depreciation years in January 2020, The Company was granted with a financial subsidyof RMB 1,000,000.00 this year. The current period is charged to the current profit and loss of 221，465.76 yuan，the ending balance without amortization was RMB8369,109.67.
22. According to the Shenzhen Action Plan on Implementing Technical Transformation Multiplication Plan toExpand Effective Industrial Investment (2017-2020)" (SFB [2017] No.22) and Shenzhen's Several Measures onImplementing Technical Transformation Multiplication Plan to Expand Effective Industrial Investment (SFBG[2017] No.9), in June 2020, the company received the first subsidy of 190,000.00 yuan for the special technicaltransformation investment project of technical transformation multiplication in 2020, which was allocatedaccording to the depreciation period of related assets of 10 years. Other income of 9,499.98 yuan was included inthe current period, and the undistributed balance at the end of the period was 169,416.69 yuan.
52. . Other non-current liabilities
Not applicable
53.Stock capital
In RMB
| Year-beginning balance | Changed（+，-） | Balance in year-end | |||||
| Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | |||
| Total of capital shares | 507,772,279.00 | -1,250,430.00 | -1,250,430.00 | 506,521,849.00 | |||
Other note：
On February 7, 2021, the Company repurchased and canceled 13,950 restricted shares held by the employeeswho resigned and retired, and the share capital decreased by RMB 13,950.00.
On April 13, 2021, the Company repurchased and canceled the restricted stocks that did not meet theconditions for lifting the restriction on sale in the last phase and the restricted stocks held by the incentive objectswho left the company, totaling 1,236,480 shares, with the share capital reduced by RMB 1,236,480.00.
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, including preferred shares, perpetualbonds, etc. at the end of the reporting periodNot applicable
(2)Movement of the outstanding other financial instruments, including preferred shares, perpetual bonds,etc. at the end of the reporting periodNot applicable
55. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 1,967,514,358.53 | 5,914,533.90 | 1,961,599,824.63 | |
| Total | 1,967,514,358.53 | 5,914,533.90 | 1,961,599,824.63 |
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
The change of capital stock premium in the current period is from the repurchase and cancellation of somerestricted stocks granted by the Company's restricted stock incentive plan in 2017.
56.Treasury stock
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Treasury stock | 7,525,438.20 | 7,525,438.20 | 0.00 | |
| Total | 7,525,438.20 | 7,525,438.20 |
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
The change of capital stock premium in the current period is from the repurchase and cancellation of somerestricted stocks granted by the Company's restricted stock incentive plan in 2017.
57. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | |||||
| Amount incurred before | Less：Amount transferred into profit | Less：Prior period included in other | Less：Income tax | After-tax attribute to the parent | After-tax attribute to minority shareholde | |||
| income tax | and loss in the current period that recognied into other comprehensive income in prior period | composite income transfer to retained income in the current period | expenses | company | r | |||
| 1. Other comprehensive income that cannot be reclassified in the loss and gain in the future | 115,367,833.87 | -1,338,625.22 | -334,656.31 | -1,003,968.91 | 114,363,864.96 | |||
| Changes in fair value of investments in other equity instruments | 115,367,833.87 | -1,338,625.22 | -334,656.31 | -1,003,968.91 | 114,363,864.96 | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | 1,238,098.55 | -4,045,320.86 | -4,045,320.86 | -2,807,222.31 | ||||
| Translation differences of financial statements denominated | 1,238,098.55 | -4,045,320.86 | -4,045,320.86 | -2,807,222.31 | ||||
| Total of other comprehensive income | 116,605,932.42 | -5,383,946.08 | -334,656.31 | -5,049,289.77 | 111,556,642.65 |
Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of arbitrageditems for adjustment: None
58. Special reserves
Not applicable
59. Surplus reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 94,954,652.14 | 94,954,652.14 | ||
| Total | 94,954,652.14 | 94,954,652.14 |
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in thereporting period: None
60. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | 86,912,390.50 | 49,307,764.03 |
| Retained earnings after adjustments at the year end | 86,912,390.50 | 49,307,764.03 |
| Add: Net profit attributable to owners of the Company for the period | 76,603,074.39 | 37,267,995.74 |
| Less: Appropriation to statutory surplus reserve | 0.00 | 3,888,292.80 |
| Common stock dividend payable | 15,195,655.47 | |
| Add：Other comprehensive earnings are carried forward to retained earnings | 4,224,923.53 | |
| Retained profits at the period end | 148,319,809.42 | 86,912,390.50 |
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affectedbeginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profitsare RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,097,424,726.81 | 859,513,585.39 | 853,157,761.73 | 758,822,814.42 |
| Other business | 4,111,680.57 | 3,611,874.68 | 3,155,587.01 | 2,085,489.19 |
| Total | 1,101,536,407.38 | 863,125,460.07 | 856,313,348.74 | 760,908,303.61 |
Income-related information:
In RMB
| Type | Division 1 | Division 2 | Division 3 | Total |
| Types of goods | 1,021,894,566.16 | 59,978,289.06 | 19,663,552.16 | 1,101,536,407.38 |
| Of which | ||||
| Polarizer | 1,021,894,566.16 | 0.00 | 1,021,894,566.16 | |
| Property lease management and others | 59,978,289.06 | 0.00 | 59,978,289.06 | |
| Textile | 0.00 | 0.00 | 19,663,552.16 | 19,663,552.16 |
| Area | 949,528,109.45 | 152,008,297.93 | 1,101,536,407.38 | |
| Of which | ||||
| Domestic | 949,528,109.45 | 949,528,109.45 | ||
| Overseas | 152,008,297.93 | 152,008,297.93 | ||
| Of which | ||||
| Of which | ||||
| Of which | ||||
| Of which | ||||
| Of which |
Information related to performance obligations: NoneInformation related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performedincompletely but the contract has been signed at the end of the reporting period is RMB 0.00, of which RMB 0.00is expected to be recognized as income in the year, RMB 0.00 is expected to be recognized as income in the year,and RMB 0.00 is expected to be recognized as income in the year.Other note: None
62.Taxes and surcharges
In RMB
| Items | Amount of current period | Amount of previous period |
| Consumption tax | 0.00 | |
| Urban construction tax | 281,149.75 | 293,203.50 |
| Education surcharge | 200,819.41 | 208,749.85 |
| Resource tax | 0.00 | |
| Property tax | 2,888,631.84 | 1,431,139.71 |
| Land use tax | 184,237.54 | 50,266.26 |
| vehicle and vessel usage tax | 360.00 | 0.00 |
| Stamp tax | 717,598.47 | 700,759.15 |
| Other | 8,247.78 | 5,609.59 |
| Total | 4,281,044.79 | 2,689,728.06 |
Other note: None
63.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 9,298,067.94 | 3,554,124.69 |
| Transportation changes | 0.00 | 4,551,167.40 |
| Exhibition fee | 0.00 | 0.00 |
| Business expenses | 522,657.33 | 193,747.29 |
| Samples and product loss | 751,108.62 | 305,048.70 |
| Property insurance | 2,716,981.13 | 0.00 |
| Sell | 5,768,718.15 | 4,217,847.51 |
| Travel expenses | 485,870.44 | 388,231.96 |
| Other | 950,371.21 | 170,753.73 |
| Total | 20,493,774.82 | 13,380,921.28 |
Other note：The salary increase of sales expenses this year is mainly caused by the department adjustment of thesubsidiary, SAPO Photoelectric Co., Ltd., the increase of sales service fees is mainly due to the correspondingincrease of agent service fees due to the increase of sales volume of some customers, the transportation expensesare included in the operating costs in this period, and the property insurance is mainly the new material insurancepurchased in this period.
64. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 38,236,906.16 | 29,847,030.96 |
| Depreciation of fixed assets | 4,879,277.56 | 4,973,342.05 |
| Water and electricity | 3,022,844.03 | 893,936.96 |
| Intermediary organ | 1,931,057.09 | 1,931,057.09 |
| Intangible assets amortization | 832,673.40 | 749,763.64 |
| Travel expenses | 210,173.80 | 232,235.49 |
| Office expenses | 443,729.99 | 429,662.27 |
| Business entertainment | 588,954.42 | 150,393.20 |
| Lawsuit expenses | 0.00 | 30,953.77 |
| Repair charge | 604,512.02 | 318,416.19 |
| Property insurance | 128,797.77 | 91,409.02 |
| Low consumables amortization | 857,011.20 | 22,644.20 |
| Board fees | 109,620.00 | 46,687.88 |
| Rental fee | 0.00 | 776,298.48 |
| Other | 3,482,103.32 | 3,853,634.46 |
| Tax | 55,327,660.76 | 44,347,465.66 |
Other note: None
65.R & D costs
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage | 8,134,336.44 | 5,751,277.54 |
| Material | 18,818,987.18 | 16,679,205.26 |
| Depreciation | 1,650,506.69 | 1,470,406.20 |
| Fuel & Power | 423,847.84 | 553,582.61 |
| Travel expenses | 96,760.54 | 58,048.90 |
| Other | 45,654.70 | 48,530.44 |
| Total | 29,170,093.39 | 24,561,050.95 |
Other note: None
66.Financial Expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 379,800.97 | 221,034.71 |
| Interest income | -840,978.40 | -1,738,185.54 |
| Exchange loss | -12,318,481.73 | 1,579,207.02 |
| Fees and other | 3,564,625.68 | 1,699,519.77 |
| Total | -9,215,033.48 | 1,761,575.96 |
Other note：None
67.Other income
In RMB
| Items | Amount of current period | Amount of previous period |
| Government Subsidy | 8,764,569.01 | 13,045,221.53 |
68. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment returns accounted for by equity method | -412,713.12 | -2,253,932.85 |
| Investment income from the disposal of long-term equity investment | 20,779.93 | 518,152.41 |
| Dividend income earned during investment holdings in other equity instruments | 1,122,007.80 | 1,418,634.82 |
| Structured deposit interest | 9,422,057.74 | 14,249,971.25 |
| Total | 10,152,132.35 | 13,932,825.63 |
Other note：None
69.Net exposure hedging income
Not applicable
70. Gains on the changes in the fair value
单位：元
| Source | Amount of this period | Amount of last period |
| Transaction financial assets | 914,599.37 | |
| Total | 914,599.37 |
Other note：None
71. Credit impairment loss
In RMB
| Items | Amount of this period | Amount of last period |
| Loss of bad debts in other receivables | -5,217,962.16 | 114,166.37 |
| Loss of bad accounts receivable | 812,160.93 | -3,921,853.87 |
| Loss of bad note receivable | 58,202.39 |
| Total | -4,347,598.84 | -3,807,687.50 |
Other note：None
72. Losses from asset impairment
In RMB
| Items | Amount of current period | Amount of previous period |
| II. Loss of inventory price and Impairment of contract performance costs | -52,628,070.13 | -35,474,634.93 |
| Total | -52,628,070.13 | -35,474,634.93 |
Other note：None
73. Asset disposal income
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Gains & losses on foreign investment in fixed assets | 0.00 | 0.00 |
| II.Gains & losses on the disposal of fixed assets | -55.96 | -6,837.44 |
74. Non-Operation income
In RMB
| Items | Amount of current period | Amount of previous period | Recorded in the amount of the non-recurring gains and losses |
| Other | 18,938.83 | 20,431.28 | 18,938.83 |
| Return insurance settlement income | 3,278,053.95 | 0.00 | 3,278,053.95 |
| Payable without payment | 17,140,459.60 | 0.00 | 17,140,459.60 |
| Total | 20,437,452.38 | 20,431.28 | 20,437,452.38 |
Government subsidies recorded into current profits and losses：
In RMB
| Items | Issuing body | Issuing reason | Nature | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Amount of current period | Amount of previous period | Assets-related/income-related |
Other note：None
75.Non-current expenses
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Non-current asset Disposition loss | 344,978.92 | 3,275.19 | 344,978.92 |
| Other | 0.00 | 103,135.58 | |
| Total | 344,978.92 | 106,410.77 | 344,978.92 |
Other note：None
76.Income tax expenses
(1)Income tax expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 7,936,142.04 | 5,341,193.75 |
| Deferred income tax expense | -57,226.00 | -82,801.88 |
| Total | 7,878,916.04 | 5,258,391.87 |
(2)Reconciliation of account profit and income tax expenses
In RMB
| Items | Amount of current period |
| Total profits | 121,301,456.29 |
| Income tax expenses calculated at the applicable tax rate | 30,325,364.07 |
| Influence of different tax rates applied by some subsidiaries | -8,211,001.88 |
| Income not subject to tax | -1,981,295.30 |
| Non-deductible costs, expenses and losses | 106,703.77 |
| Tax impact by the unrecognized deductible losses and deductible temporary differences in previous years | -10,420,724.52 |
| Tax impact of unrecognized deductible losses and deductible temporary differences | 2,903,270.24 |
| Tax impact of research and development fee plus deduction | -4,375,514.01 |
| Impact of income tax relief preferences | -467,886.33 |
| Income tax expense | 7,878,916.04 |
Other note：None
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest income and other（Not including financing product） | 665,366.82 | 30,410,217.36 |
| Letter of Credit Deposit | 13,963,635.17 | 50,473,165.17 |
| Government Subsidy | 7,242,800.00 | 10,525,545.03 |
| Current account | 16,893,575.28 | |
| Insurance claim | 3,255,114.00 | |
| Total | 42,020,491.27 | 91,408,927.56 |
Note to other cash received in connection with operating activities: None
(2)Other cash paid related to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Payment of credit deposit | 122,116,897.49 | 63,184,256.28 |
| Other | 38,830,126.18 | 20,828,454.70 |
| Total | 160,947,023.67 | 84,012,710.98 |
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Structured deposits, financial products, principal and income | 779,428,611.40 | 1,711,990,437.06 |
| L/C margin for purchase of line 7 equipment | 100,799,633.00 | |
| Total | 779,428,611.40 | 1,812,790,070.06 |
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Structure deposit investment | 732,374,977.65 | 1,654,000,000.00 |
| Total | 732,374,977.65 | 1,654,000,000.00 |
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
Not applicable
（6）Cash paid related with financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Restricted stock of stock repurchase incentive object | 7,820,298.30 | 8,981,300.40 |
| Total | 7,820,298.30 | 8,981,300.40 |
Note to other Cash paid related with financing activities： None
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities | -- | -- |
| Net profit | 113,422,540.25 | -8,991,180.85 |
| Add: Impairment loss provision of assets | 52,628,070.13 | 39,282,322.43 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 58,051,019.56 | 54,769,598.66 |
| Depreciation of Use right assets | ||
| Amortization of intangible assets | 832,673.40 | 749,763.64 |
| Amortization of Long-term deferred expenses | 390,173.02 | 284,354.60 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | 20,779.93 | 6,837.44 |
| Fixed assets scrap loss | 427,672.86 | 3,275.19 |
| Loss on fair value changes | -914,599.37 | |
| Financial cost | -9,215,033.48 | 221,034.71 |
| Loss on investment | -10,131,352.42 | -13,932,825.63 |
| Decrease of deferred income tax assets | -57,226.00 | 479,558.70 |
| Increased of deferred income tax liabilities | -334,656.31 | -3,892,057.00 |
| Decrease of inventories | -95,326,175.24 | -73,812,662.03 |
| Decease of operating receivables | -84,942,673.31 | -86,494,322.83 |
| Increased of operating Payable | -77,494,749.27 | -44,293,172.26 |
| Other | ||
| Net cash flows arising from operating activities | -52,643,536.25 | -135,619,475.23 |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| Conversion of debt into capital | ||
| Convertible corporate bonds maturing within one year | ||
| Financing of fixed assets leased | ||
| 3．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash | 252,993,764.22 | 173,706,279.73 |
| Less: Beginning balance of cash equivalents | 278,337,236.95 | 268,646,588.18 |
| Add：End balance of cash equivalents | ||
| Less: Beginning balance of cash equivalents | ||
| Net increase of cash and cash equivalent | -25,343,472.73 | -94,940,308.45 |
(2) Net Cash paid of obtaining the subsidiary
Not applicable
(3) Net Cash receive of disposal of the subsidiary
Not applicable
(4) Component of cash and cash equivalents
In RMB
| Items | Year-end balance | Year-beginning balance |
| I. Cash | 252,993,764.22 | 278,337,236.95 |
| Including：Cash at hand | 4,054.12 | 4,127.10 |
| Demand bank deposit | 182,575,694.25 | 271,085,025.10 |
| Demand other monetary funds | 70,414,015.85 | 7,248,084.75 |
| III. Balance of cash and cash equivalents at the period end | 252,993,764.22 | 278,337,236.95 |
| Including：Restricted cash and cash equivalents used by parent or Group equivalents | 8,450,000.00 | 750,000.00 |
Other note：None
80. Note of statement of changes in the owner's equity
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:
Not applicable
81. The assets with the ownership or use right restricted
In RMB
| Items | Book value at the end of the reporting period | Cause of restriction |
| Monetary fund | 8,450,000.00 | Deposit for L/C |
| Intangible assets | 44,770,083.00 | Mortgage |
| Construction in process | 257,003,447.13 | Mortgage |
| Other receivable | 110,021,440.71 | Mortgage |
| Fixed assets | 330,744,828.51 | Mortgage |
| Total | 750,989,799.35 | -- |
Other note：None
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Items | Closing foreign currency balance | Exchange rate | Closing convert to RMB balance |
| Monetary funds | -- | -- | |
| Including：USD | 1,266,921.20 | 6.4601 | 8,184,437.64 |
| Euro | |||
| HKD | 106,174.11 | 0.8321 | 88,347.48 |
| Yen | 15,370,067.00 | 0.0584 | 898,042.28 |
| Account payable | -- | -- | |
| Including：USD | 11,884,389.83 | 6.4601 | 76,774,346.75 |
| Euro | |||
| HKD | 278,280.00 | 0.8321 | 231,556.79 |
| Long-term borrowing | -- | -- | |
| Including：USD | |||
| Euro | |||
| HKD | |||
| Other receivable | |||
| Including：USD | 37,399.02 | 6.4601 | 241,601.41 |
| Other payable | |||
| Including：USD | 676,686.00 | 6.4601 | 4,371,459.23 |
| HKD | 3,044.46 | 0.8321 | 2,533.30 |
| Yen | 3,381,984.00 | 0.0584 | 197,602.57 |
| Euro | 22,500.00 | 7.6862 | 172,939.50 |
| Account payable | |||
| Including：USD | 4,660,561.49 | 6.4601 | 30,107,693.31 |
| Yen | 2,863,312,845.00 | 0.0584 | 167,297,642.92 |
Other note：None
(2) Note to overseas operating entities, including important overseas operating entities, witch should bedisclosed about its principal business place, function currency for bookkeeping and basis for the choice. Incase of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitragedrisk qualitative and quantitative information:
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
| Items | Amount | Project | Amount included in current profit and loss |
| Grant funds for TFT-LCD polarizer industry project | 13,000,000.00 | Deferred income | 649,999.98 |
| Grant funds for TFT-LCD polarizer narrow line (line 5) project | 5,000,000.00 | Deferred income | 250,000.02 |
| Shenzhen polarizing materials and Technology Engineering Laboratory innovation venture capital | 5,000,000.00 | Deferred income | 250,000.02 |
| Import equipment and technical subsidy (Line 4 and Line 5) | 1,750,902.00 | Deferred income | 87,545.10 |
| Grant from municipal R&D center (technical center) | 3,000,000.00 | Deferred income | 150,000.00 |
| Matching funds of Shenzhen polarizing materials and technical engineering laboratory（Pingshan) | 500,000.00 | Deferred income | 25,000.02 |
| Matching funds for strategic emerging industry projects of the National Development and Reform Commission（Pingshan) | 500,000.00 | Deferred income | 25,000.02 |
| In 2012, Shenzhen encouraged the introduction of advanced technology import subsidy funds | 143,881.00 | Deferred income | 7,194.06 |
| Local supporting funds for TFT-LCD polarizer Phase II Project (line 6) | 15,000,000.00 | Deferred income | 750,000.00 |
| Payment for production plant and equipment of Line 6 | 40,000,000.00 | Deferred income | 1,999,999.98 |
| Innovation and venture funds for TFT-LCD polarizer phase II project (Line 6) | 500,000.00 | Deferred income | 25,000.02 |
| Fund for key technology R&D and technical research project of optical compensation film for polarizer | 5,000,000.00 | Deferred income | 250,000.02 |
| Special fund for strategic emerging industries and future development in Guangdong Province, the third batch of supporting programs in 2016 - supporting programs for national/provincial projects | 5,000,000.00 | Deferred income | 1,250,000.04 |
| Polarization Industrialization Project for Super Large-sized TVs (Line 7) Central Budget Investment | 30,000,000.00 | Deferred income | 0.00 |
| Research & development subsidy for key technologies of ultra-thin IPS polarizer for smart phone terminals | 2,000,000.00 | Deferred income | 0.00 |
| 6,000,000.00 | Deferred income | 0.00 | |
| Special fund subsidies agreement for improving the quality of atmospheric environment in Shenzhen | 1,033,507.00 | Deferred income | 221,465.76 |
| 2020 Double subsidies for special technological renovation investment project | 190,000.00 | Deferred income | 9,499.98 |
| Grant FOR the key technology R&D project of low color partial circular polarizer for AMOLED with fixed curvature of 2020N028 | 2,500,000.00 | Deferred income | 0.00 |
| Income-related government subsidies | 1,387,757.55 | Other income | 1,387,757.55 |
| Old elevator renovation fund subsidies | 325,380.00 | Deferred income | 55,877.86 |
| Subsidies for operation in lieu of training in Luohu District | 15,500.00 | Deferred income | 15,500.00 |
| Technical renovation equipment subsidy for dyeing project | 130,000.00 | Deferred income | 32,500.00 |
| Special fund subsidies agreement for improving the quality of atmospheric environment in Shenzhen | 520,000.00 | Deferred income | 26,000.00 |
| Textile special funds | 2,000,000.00 | Deferred income | 71,428.58 |
| Enterprises will absorb one-time subsidies for the registered poor labor force | 60,000.00 | Deferred income | 60,000.00 |
| 2019 Pingshan District Harmonious Labor Relations Enterprise incentive fund | 500,000.00 | Other income | 500,000.00 |
| The second batch of Science and Technology Innovation Special Fund in 2020 (identification and award for high-tech enterprises) | 300,000.00 | Other income | 300,000.00 |
| The second batch of Science and Technology Innovation Special Fund in 2020 (Intellectual Property Award) | 4,800.00 | Other income | 4,800.00 |
| The second batch of scientific and technological innovation special funds for 2020 (standardization funding) | 360,000.00 | Other income | 360,000.00 |
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
Not applicableVIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Not applicable
(2) Combined cost and goodwill
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair valuemeasured again、Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value ofliabilities of the acquiree at acquisition date or closing period of the mergeNot applicable
(6) Other note
Not applicable
2. Business combination under the same control
(1) Business combination under the same control during the reporting periodNot applicable
(2) Combination cost
Not applicable
(3) The book value of the assets and liabilities of the merged party on the date of consolidationNot applicable
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities ofthe listed companies whether constituted a business and its basis, the determination of the combination costs, theamount and calculation of adjusted rights and interests in accordance with the equity transaction process.Notapplicable
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries, liquidation subsidiaries, etc.) caused by other
reasons and relevant information:
6.Other
Not applicableIX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Lishi Industry Development Co., Ltd | Shenzhen | Shenzhen | Domestic trade, Property Management | 100.00% | Establish | |
| Shenzhen Huaqiang Hotel | Shenzhen | Shenzhen | Accommodation, restaurants, business center; | 100.00% | Establish | |
| Shenzhen Shenfang Real Estate Management Co., Ltd. | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| Shenzhen Beauty Century Garment Co., Ltd. | Shenzhen | Shenzhen | Production of fully electronic jacquard knitting whole shape | 100.00% | Establish | |
| Shenzhen Shenfang Sungang Real Estate Management Co., Ltd. | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| SAPO Photoelectric | Shenzhen | Shenzhen | Polarizer production and sales | 60.00% | Purchase | |
| Shenzhen Textile Import & export Co., Ltd. | Shenzhen | Shenzhen | Operating import and export business | 100.00% | Establish | |
| Shengtou (Hongkong) Co.,Ltd. | Hongkong | Hongkong | Production and sales of polarizer | 100.00% | Establish | |
| Shenzhen Shengjinlian Technology Co., Ltd. | Shenzhen | Shenzhen | Property leasing | 100.00% | Establish | |
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: NoneBasis for holding half or less voting rights but still controlling the investee, and holding more than half votingrights but not controlling the investee: NoneFor the important structured subjects included in the scope of consolidation, the control basis is: NoneBasis for determining whether the company is an agent or a principal: NoneOther note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
| Name | Holding proportion of non-controlling interest | Profit or loss attributable to non-controlling interest | Dividend declared to non-controlling interest | Closing balance of non-controlling interest |
| SAPO Photoelectric | 40.00% | 36,819,465.86 | 0.00 | 1,169,900,541.09 |
Other note：None
（3）Main financial information of significant not wholly-owned subsidiariesIn RMB
| Subsidiaries | Closing balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | |
| SAPO Photoelectric | 1,549,856,788.87 | 2,350,399,213.55 | 3,900,256,002.42 | 352,609,121.70 | 650,208,839.08 | 1,002,817,960.78 | 1,493,449,647.08 | 2,177,130,756.68 | 3,670,580,403.76 | 400,104,999.99 | 452,171,112.38 | 852,276,112.37 |
In RMB
| Subsidiaries | Amount of current period | Amount of previous period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
| SAPO Photoelectric | 1,026,352,289.62 | 79,133,750.25 | 79,133,750.25 | -49,132,316.09 | 802,362,703.39 | -28,210,564.14 | -28,210,564.14 | -114,179,379.34 |
Other note
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debtNot applicable
(5) Provide financial support or other support for structure entities incorporate into the scope ofconsolidated financial statements
Not applicable
2. The transaction of the Company with its owner’s equity share changed but still controlling thesubsidiary
(1) Note to owner’s equity share changed in subsidiary
Not applicable
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity ofthe parent companyNot applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | The accounting treatment of investment in associates | |
| direct | indirect | |||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd | Shenzhen | Shenzhen | Property leasing | 50.16% | Equity method | |
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the votingright ratio: NoneBasis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of votingrights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Current assets | 30,735,563.91 | 19,854,144.21 |
| Non-current assets | 234,362,180.35 | 241,137,964.49 |
| Total assets | 265,097,744.26 | 260,992,108.70 |
| Current liabilities | 16,939,397.58 | 12,261,343.60 |
| Non-current liabilities | 37,309,059.12 | 37,356,444.69 |
| Total liabilities | 54,248,456.70 | 49,617,788.29 |
| Attributable to shareholders of the parent company | 210,849,287.56 | 211,374,320.41 |
| Share of net assets calculated by stake | 105,762,002.64 | 106,025,359.12 |
| --Goodwill | 21,595,462.44 | 21,595,462.44 |
| --Other | 285,343.61 | 285,343.61 |
| Book value of equity investment in joint ventures | 127,642,808.69 | 127,906,165.17 |
| Operating income | 8,614,658.31 | 14,623,800.97 |
| Financial expenses | -53,530.25 | -39,339.28 |
| Income tax expenses | 1,990,580.05 | -2,118,023.83 |
| Net profit | -525,032.86 | -3,422,861.88 |
| Total comprehensive income | -525,032.86 | -3,422,861.88 |
(3) Main financial information of significant associated enterprise
Not applicable
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Joint venture： | -- | -- |
| Total amount of the pro rata calculation of the following items | 0.00 | 10,797,023.14 |
| Total amount of the pro rata calculation of the following items | -- | -- |
| Associated enterprise： | -- | -- |
| Total book value of the investment | 5,031,271.42 | 9,225,948.92 |
| Total amount of the pro rata calculation of the following items | -- | -- |
| --Net profit | -149,356.64 | -1,228,263.90 |
| --Other Comprehensive income | -4,045,320.86 | 388,316.57 |
| --Total comprehensive income | -4,194,677.50 | -839,947.33 |
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer fundsto the Company
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investmentNot applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statementsNone
6.Other
NoneX. Risks Related to Financial InstrumentsThe company has the main financial instruments, such as bank deposits, receivables and payables,investments, loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associatedwith these financial instruments mainly include credit risk, market risk and liquidity risk. The Company dispersesthe risks of financial instruments through appropriate diversified investment and business portfolio, and reducesthe risks concentrated in a single industry, a specific region or a certain counterparty by formulating correspondingrisk management policies.（I）Credit Risk
(1) Credit risk
Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting infinancial losses of the Company.The Company manages credit risk according to portfolio classification. Credit risks mainly arise from bankdeposits, notes receivable, accounts receivable and other receivables.The bank deposits of the Company are mainly deposited in state-owned banks and other large andmedium-sized listed banks, and such bank deposits are not expected to have significant credit risks.For notes receivable, accounts receivable, other receivables and long-term receivables, the Company setsrelevant policies to control credit risk exposure. The Company evaluates customers' credit qualifications based ontheir financial status, credit records and other factors such as current market conditions, and sets corresponding
credit periods. The Company will regularly monitor customers' credit records. For customers with bad creditrecords, the Company will adopt written dunning, shortening of credit period or cancellation of credit period toensure that the overall credit risk of the Company is within the controllable range.
Debtors of accounts receivable of the Company are customers distributed in different industries and regions.The Company continuously evaluates the financial status of accounts receivable and purchases credit guaranteeinsurance when appropriate.The maximum credit risk exposure the company is subject to is the book amount of each financial asset inthe balance sheet. The Company has not provided any other guarantee that may expose the Company to creditrisk.
(2) Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle bydelivering cash or other financial assets.
The member companies of the Company are responsible for their own cash management, includingshort-term investment of cash surplus and raising loans to meet the estimated cash demand (if the loan amountexceeds certain preset authorization limits, it needs to be approved by the Board of Directors of the Company). Inaddition, the Company will also consider negotiating with suppliers to reduce part of the debt amount, or obtainfunds in advance by selling long-aged accounts receivable, so as to reduce the cash flow pressure of the Company.The Company's policy is to regularly monitor the short-term and long-term liquidity demand and whether it meetsthe requirements of the loan agreement, so as to ensure that sufficient cash reserves and securities that can berealized at any time are maintained, and at the same time, to obtain sufficient reserve funds that major financialinstitutions promise to provide, so as to meet the short-term and long-term liquidity demand.
(3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financialinstruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk and otherprice risks.
Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuatedue to changes in market interest rates. Interest rate risk can be caused by recognized interest-bearing financialinstruments and unrecognized financial instruments (such as certain loan commitments).
The Company's interest rate risk mainly arises from long-term bank loans. Financial liabilities with floatinginterest rate expose the Company to cash flow interest rate risk, while financial liabilities with fixed interest rateexpose the Company to fair value interest rate risk.
The Company pays close attention to the impact of interest rate changes on its interest rate risk. At present,the Company has not adopted interest rate hedging policy. However, the management is responsible formonitoring interest rate risk and will consider hedging significant interest rate risk when necessary.
For financial instruments held on the balance sheet date, which expose the Company to fair value interest raterisk, the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of remeasuringthe financial instruments according to the new interest rate, assuming that the interest rate changes on the balancesheet date. For the floating interest rate non-derivative instruments held on the balance sheet date, which exposethe Company to cash flow interest rate risk, the impact of the above sensitivity analysis on net profit andshareholders' equity is the impact of the above interest rate changes on the annual estimated interest expense orincome. Last year's analysis was based on the same assumptions and methods.
Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments willfluctuate due to the change of foreign exchange rate. Exchange rate risk can be derived from financial instrumentsdenominated in foreign currencies other than the functional currency.Exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial positionand cash flow of the Company. The ratio of foreign currency assets and liabilities held by the Company to the totalassets and liabilities is not significant. Therefore, the Company believes that the exchange rate risk it faces is notsignificant.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
| Items | Closing fair value | |||
| Fir value measurement items at level 1 | Fir value measurement items at level 2 | Fir value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (1) Transactional Financial Asset | 488,186,286.75 | 160,695,872.76 | 648,882,159.51 | |
| 1.Financial assets at fair value through profit or loss | 488,186,286.75 | 160,695,872.76 | 648,882,159.51 | |
| （1）Debt instrument investment | 488,186,286.75 | 160,695,872.76 | 648,882,159.51 | |
| （III) Other equity instrument investment | 8,790,765.62 | 180,478,036.70 | 189,268,802.32 | |
| （II)Receivable financing | 50,548,060.18 | 50,548,060.18 | ||
| （IV)Other non-current financial asset | 28,500,000.00 | 28,500,000.00 | ||
| Total liabilities measured at fair value on a non-ongoing basis | 496,977,052.37 | 420,221,969.64 | 917,199,022.01 | |
| II Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
Quotes of the same assets or liabilities in active markets (unadjusted). The fair value of the Fuao Stoke heldby the Company at the end of the period is measured based on the closing price of Shenzhen Stock Exchange onJune 30, 2021.
3. Items measured based on the continuous or uncontinuous level 2nd fair value, valuation technique asused, nature of important parameters and quantitative information
Use observable input values other than the market quotation of assets or liabilities in the Level I directly (i.e.price) or indirectly (i.e. derived from price).
4. Items measured based on the continuous or uncontinuous level 3rd fair value, valuation technique asused, nature of important parameters and quantitative informationAssets or liabilities use any input value that is not based on observable market data (unobservable inputvalue).
1. Financial assets measured at fair value and whose changes are included in the profits and losses of thecurrent period are bank structured deposits held by the Company, which are measured at fair value based on theprincipal amount due to their short maturity;
2. Accounts receivable financing is a bank acceptance bill with a short face value and a face value close tothe fair value, which is measured at the face value as the fair value;
3. Investment in other equity instruments is held by the Company Investment in non-tradable equityinstruments is mainly valued and measured by market method, asset-based method and income method. Amongthem: Shenzhen Jiafeng Textile Industry Co., Ltd. and Jintian Industry (Group) Co., Ltd. faced with a operatingenvironment and operating conditions and financial status, so the Company uses zero yuan as a reasonableestimate of fair value for measurement; Changxing Junying Equity Investment Partnership (Limited Partnership)has no significant changes in its operating environment, operating conditions and financial status, so the Companymeasures the investment cost as a reasonable estimate of fair value.
5. Continuous third-level fair value measurement items, adjustment information between initial and finalbook values and sensitivity analysis of un-observable parametersNot applicable
6. Continuous fair value measurement items, the conversion between different levels in the current period,the reasons for the conversion and the policy for determining the conversion timeNot applicable
7. Change of valuation technique incurred in the current period and cause of such changeNot applicable
8. Fair value of financial assets and financial liabilities not measured at fair valueNot applicable
9.Other
NoneXII. Related parties and related-party transactions
1.Parent company information of the enterprise
| Name | Registered address | Nature | Registered capital | The parent company of the Company's shareholding ratio | The parent company of the Company’s vote ratio |
| Shenzhen Investment Holdings Co.,Ltd. | 18/F, Investment Building, Shennan Road, Futian District, Shenzhen | Equity investment , Real-estate Development and Guarantee | RMB 28,009 million | 46.21% | 46.21% |
Note to the parent company:
The company is authorized and approved to be state-owned independent company by Shenzhen Government, andit Executes financial contributor function on state-owned enterprise within authorization scope.Therefore, the Company’s ultimate controller is Shenzhen Investment Holdings Co., Ltd.Other note：None
2.Subsidiaries of the Company
Details refer to the Note IX-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3, Interests in joint ventures or associatesInformation on other joint venture and associated enterprise of occurring related party transactions with theCompany in reporting period, or form balance due to related party transactions in previous period:
NoneOther note: None
4.Other Related parties information
| Other related party | Relationship to the Company |
| Shenzhen Tianma Microelectronics Co., Ltd. | Chairman of the Board Is the Vice Chairman of the Company |
| Hangzhou Jinjiang Group Co., Ltd. | The controlling party of SAPO Shareholder |
| Hangzhou Jinhang Investment Fund Partner ship (LP) | A subsidiary of Hangzhou Jinjiang Group Co., Ltd. |
| Shengto (HK) Co., Ltd. | The Company Executives are Director of the company |
| Zhejiang Hengjie Industry Co., Ltd. | A subsidiary of Hangzhou Jinjiang Group Co., Ltd. |
| Hengmei Photoelectric Co., Ltd. | Sharing Company of Hangzhou Jinjiang Group Co., Ltd. |
| Shenzhen Xinfang Knitting Co., Ltd. | Sharing Company |
| Shenzhen Dailishi Underwear Co., Ltd. | Sharing Company |
Other noteIn July 2021, Jinhang Investment and Advantage Ford completed their internal decision-making approval, and thedelivery conditions for Advantage Ford to receive 100% partnership shares of Jinhang Investment have been met,and both parties will promote the transfer of partnership shares. After the completion of the transfer procedure,Advantage Ford will directly hold 99.93333% of the partnership share of Jinhang Investment; Meanwhile,Zhejiang Hengjie Industrial Co., Ltd. indirectly holds a partnership share of 0.06667% of Jinhang Investment. Asof July 28, 2021, for the above equity transfer, the industrial and commercial change registration procedures havebeen completed. After the completion of this equity transfer, Advantage Ford holds 40% equity of SAPOPhotoelectric through Jinhang Investment, and the strategic investor of SAPO Photoelectric has changed fromJinjiang Group to Advantage Ford. For details, please refer to "Section 6 Important Matters XIV. ImportantMatters of Company Subsidiaries (V) Matters on Waiver of Preemption Right and Equity Transfer of HoldingSubsidiaries" in this report.
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor serviceNot applicable
Related transactions on sale goods and receiving servicesNot applicable
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Related guarantee
In RMB
| Guaranteed party | Amount | Guarantee start date | Guarantee end date | Whether the guarantee has been fulfilled |
| SAPO photoelectric | 326,249,400.00 | September 8,2020 | No |
The Company is the secured partyNot applicable
(5) Inter-bank lending of capital of related parties：
In RMB
| Related party | Amount | Start date | Expiring date | Note |
| Borrowing fund： | ||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 3,806,454.17 | July 30,2019 | The annual lending rate is 0.30% | |
(6) Related party asset transfer and debt restructuring
Not applicable
(7) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
| Rewards for the key management personnel | 2,512,499.00 | 3,067,183.00 |
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Balance of Book | Balance of Book | Bad debt Provision | ||
| Account receivable | Shenzhen Tianma Microelectronics Co., Ltd. | 1,472,959.68 | 73,647.98 | 581,696.96 | 25,652.84 |
| Account receivable | Hengmei Photoelectric Co., Ltd. | 168,472.52 | 8,423.63 | 20,879,229.37 | 920,774.02 |
| Other Account receivable | Anhui Huapeng Textile Company | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 |
（2）Payables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Hengmei Photoelectric Co., Ltd. | 336,847.20 | 35,787,643.44 |
| Other payable | Shenzhen Xinfang Knitting Co., Ltd. | 244,789.85 | 244,789.85 |
| Other payable | Shenzhen Changlianfa Printing & dyeing Co., Ltd. | 2,023,699.95 | 1,580,949.95 |
| Other payable | Yehui International Co.,Ltd. | 1,247,236.00 | 1,143,127.81 |
| Other payable | Shengtou （Hongkong）Co., Ltd. | 315,000.00 | 315,000.00 |
| Other payable | Shenzhen Guanhua Printing & dyeing Co., Ltd. | 3,811,240.92 | 3,811,240.92 |
7. Related party commitment
Not applicable
8.Other
NoneXIII. Share payment
1. Overall situation of share payment
√ Applicable □Not applicable
In RMB
| Total amount of various equity instruments granted by the company during the current period | 0.00 |
| Total amount of various equity instruments that the company exercises during the period | 0.00 |
| Total amount of various equity instruments that have expired in the current period | 7,823,298.30 |
| The scope of executive price of the company’s outstanding share options at the end of the period and the remaining term of the contract | 0 yuan, 0 Year, |
| The scope of executive price of the company’s other equity instruments at the end of the period and the remaining term of the contract | 0 yuan, 0 Year, |
Other note
On December 14, 2017, the company's 3rd Extraordinary General Meeting of Shareholders in 2017 passedthe Proposal on ‘Shenzhen Textile (Group) Co., Ltd. 2017 Restricted Stock Incentive Plan (Draft) and Abstract’;on December 14, 2017, the board of directors of the company reviewed and passed the Proposal on Adjusting theList of Incentive Objects of Restricted Stock Incentive Plans and the Number of Equity Granted of 2017, and theProposal on Granting Restrictive Shares to Incentive Objects. On December 14, 2017, the company granted
4,752,300 restricted shares to the incentive object, the grant price was 5.73 yuan/share. Restrictions shall be liftedat the rate of 40%, 30%, and 30% respectively after 12 months, 24 months, and 36 months after the firsttransaction date of 24 months after the completion of the registration. The company's performance assessment forthe restricted shares granted each period is as follows:
| Restriction lifting period | Performance assessment goals |
| The first restriction lifting period | In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower than the 75 fractiles level of the comparable listed companies in the same industry; the growth rate of operating revenue in 2018 compared with 2016 is not less than 70%, and is not lower than the 75 fractiles level of comparable listed companies in the same industry; in 2018, the proportion of optical film business such as polarizers to operating revenue is no less than 70%. |
| The second restriction lifting period | In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the 75 fractiles level of the comparable listed companies in the same industry; the growth rate of operating revenue in 2019 compared with 2016 is not less than 130%, and is not lower than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the proportion of optical film business such as polarizers to operating revenue is not less than 75%. |
| The third restriction lifting period | In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than the 75 fractiles level of comparable listed companies in the same industry; the growth rate of operating revenue in 2020 is not less than 200% compared to 2016, and is not lower than the 75 fractiles level of comparable listed companies in the same industry. In 2020, the proportion of optical film business such as polarizers to operating revenue will be no less than 80%. |
Note: Earnings per share=net profit/total capital stock attributable to common shareholders of the Companyupon deduction of non-recurring profit and loss.On January 15, 2021, the company held the 35th meeting of the 7th Board of Directors and the 25th meetingof the 7th Board of Supervisors. The board of directors deliberated and approved the "Proposal on Repurchase andCancellation of Some Restricted Stocks", which intends to repurchase and cancel 7,950 restricted stocks held byan original incentive object who resigned due to personal reasons, at a repurchase price of RMB 5.73 per share; Itis proposed to repurchase and cancel the 6,000 restricted shares held by a retired incentive object at a price of 6.23yuan per share.
On February 2, 2021, the company held the first extraordinary general meeting of shareholders in 2021 toconsider and pass the "Proposal on Repurchase and Cancellation of Certain Restricted Stocks", agreeing to thecompany's total holdings of 1 original incentive object who resigned due to personal reasons 7,950 restrictedstocks were repurchased and cancelled at a repurchase price of 5.73 yuan/share; agreed that the company wouldrepurchase and cancel 6,000 restricted stocks held by a retired incentive object at a repurchase price of 6.14yuan/share, in total 13,950 restricted stocks were repurchased and cancelled
On March 10, 2021, the company held the second meeting of the eighth board of directors and the secondmeeting of the eighth board of supervisors. The "Proposal on Repurchase and Cancellation of Certain RestrictedStocks" was reviewed and passed, and the company agreed to provide incentives to 102 A total of 1,236,480
restricted stocks held in the third period that did not meet the conditions for lifting the restrictions wererepurchased and cancelled. The repurchase price was calculated as the grant price of RMB 6.26 per share plus theinterest on bank deposits during the same period.On April 7, 2021, the company held the 2020 Annual General Meeting of Shareholders to review and approvethe Proposal on Repurchase and Cancellation of Some Restricted Stocks, and agreed that the company wouldrepurchase and cancel 1,236,480 restricted stocks held by 102 incentive objects in the third issue that did not meetthe conditions for lifting the restrictions on sales, and the repurchase price was RMB 6.26 per share.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
| Determination method of the fair value of equity instruments on the grant date | The closing price of the company's stock on grant date - grant price |
| Determination basis of the number of vesting equity instruments | On each balance sheet date of the waiting period, it is determined based on the latest information such as the change in the number of people that can be released from restrictions and the completion of performance indicators |
| Equity-settled share-based payment is included in the accumulated amount of capital reserve | 0.00 |
| Total amount of fees confirmed by equity-settled share-based payments in the current period | 0.00 |
Other note
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
NoneXIV. Commitments
1. Significant commitments
Significant commitments at balance sheet dateAs of June 30,2021,The company does not disclose the pension plan undisclosed matter should exist.
2. Contingency
(1) Significant contingency at balance sheet date
As of June 30,2021,The company does not disclose the pension plan undisclosed matter should exist.
(2) The Company have no significant contingency to disclose, also should be statedNone
3.Other
NoneXV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
4. Notes of other significant events
NoneXVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
Not applicable
(2) Prospective application
Not applicable
2. Liabilities restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets exchange
Not applicable
4. Pension plan
Not applicable
5. Discontinuing operation
Not applicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure, managementrequirements and internal reporting system. Based on the operating divisions, the Company confirms fourreporting divisions, namely textiles, polarizer, trade and property leasing.Divisional reporting information is disclosed in accordance with the accounting policies and measurementstandards adopted by each division when reporting to the management. These measurement basis are consistentwith the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
| Items | Polarizer | Textile | Property lease and other | Offset between divisions | Total |
| Operating income | 1,021,894,566.16 | 19,708,357.76 | 62,453,579.64 | -2,520,096.18 | 1,101,536,407.38 |
| Including: revenue from foreign transaction | 1,021,894,566.16 | 19,663,552.16 | 59,978,289.06 | 0.00 | 1,101,536,407.38 |
| Revenue from inter-segment transactions | 0.00 | 44,805.60 | 2,475,290.58 | -2,520,096.18 | 0.00 |
| Including: revenue from main business | 44,805.60 | 786,382.57 | -831,188.17 | 0.00 | |
| Operating cost | 831,130,678.94 | 16,154,781.82 | 17,935,623.64 | -2,095,624.33 | 863,125,460.07 |
| Including: main business cost | 831,130,678.94 | 16,154,781.82 | 12,634,840.95 | -406,716.32 | 859,513,585.39 |
| Operating profit | 72,798,937.77 | 309,753.35 | 28,117,665.24 | -17,373.53 | 101,208,982.83 |
| Total assets | 3,889,915,366.28 | 42,066,816.95 | 3,257,565,182.73 | -2,006,330,640.62 | 5,183,216,725.34 |
| Total indebtedness | 1,000,122,983.57 | 24,312,187.58 | 207,779,180.41 | -43,500,945.15 | 1,188,713,406.41 |
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannotbe disclosed, explain the reason
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
Not applicable
8.Other
Not applicableXVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Including： | ||||||||||
| Accrual of bad debt provision by portfolio | 2,860,638.42 | 100.00% | 143,031.92 | 5.00% | 2,717,606.50 | 1,538,316.00 | 100.00% | 76,915.80 | 5.00% | 1,461,400.20 |
| Including： | ||||||||||
| Total | 2,860,638.42 | 100.00% | 143,031.92 | 5.00% | 2,717,606.50 | 1,538,316.00 | 100.00% | 76,915.80 | 5.00% | 1,461,400.20 |
Accrual of bad debt provision by single item
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
Accrual of bad debt provision by portfolio: 143,031.92 yuan
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Within 1 year | 2,860,638.42 | 143,031.92 | 5.00% |
Notes of the basis of recognizing the group: The combination of the ageing status of accounts receivable as acredit risk feature.Accrual of bad debt provision by portfolio
In RMB
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 2,860,638.42 |
| Total | 2,860,638.42 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by portfolio: | 76,915.80 | 66,116.12 | 143,031.92 | |||
| Total | 76,915.80 | 66,116.12 | 143,031.92 |
Where the significant amount of the reserve for bad debt recovered or reversed: None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
| Name | Closing balance | Proportion % | Balance of Bad debt provision |
| Shenzhen Textile Building & Peripheral rent | 2,860,638.42 | 100.00% | 143,031.92 |
| Total | 2,860,638.42 | 100.00% |
(5) Account receivable which terminate the recognition owning to the transfer of the financial assetsNone
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement ofaccounts receivableNone
2. Other accounts receivable
In RMB
| Items | Closing balance | Opening balance |
| Other accounts receivable | 9,932,178.00 | 7,450,934.40 |
| Total | 9,932,178.00 | 7,450,934.40 |
（1）Interest receivable
1) Category of interest receivable
Not applicable
2) Significant overdue interest
Not applicable3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
1) Category of Dividend receivable
Not applicable
2) Significant dividends receivable with age exceeding 1 year
Not applicable
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Deposit | 10,000.00 | 10,000.00 |
| Unit account | 15,769,395.10 | 16,369,395.10 |
| Internal current account | 10,216,001.37 | 7,175,600.00 |
| Spare funds and employee borrowing | 171,434.00 | |
| Other | 25,200.01 | 25,200.01 |
| Total | 26,192,030.48 | 23,580,195.11 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2021 | 1,018,014.39 | 15,111,246.32 | 16,129,260.71 | |
| Balance as at January 1, 2021 in current | —— | —— | —— | —— |
| Provision in the current period | 130,591.77 | 130,591.77 | ||
| Balance as at June 30,2021 | 1,148,606.16 | 15,111,246.32 | 16,259,852.48 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 8,737,035.38 |
| 1-2 years | 2,410,316.25 |
| 2-3 years | 328,819.35 |
| Over 3 years | 14,715,859.50 |
| 3-4 years | 454,759.77 |
| 4-5 years | 1,800,000.00 |
| Over 5 years | 12,461,099.73 |
| Total | 26,192,030.48 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Accrual | Reversed or collected amount | Write-off | Other | |||
| Accrual of bad debt provision by single item | 15,111,246.32 | 15,111,246.32 | ||||
| Accrual of bad debt provision by portfolio | 1,018,014.39 | 130,591.77 | 1,148,606.16 | |||
| Total | 16,129,260.71 | 130,591.77 | 16,259,852.48 | |||
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
Not applicable
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| First | Unit account | 11,389,044.60 | Over 5 years | 43.48% | 11,389,044.60 |
| Second | Internal current account | 10,216,001.37 | Within 2 years | 39.00% | 1,029,700.07 |
| Third | Unit account | 1,800,000.00 | 4-5 years | 6.87% | 1,800,000.00 |
| Fourth | Unit account | 1,018,295.37 | 1-4 years | 3.89% | 1,018,295.37 |
| Fifth | 592,420.00 | Over 5 years | 2.26% | 592,420.00 | |
| Total | -- | 25,015,761.34 | -- | 95.50% | 15,829,460.04 |
(6) Accounts receivable involved with government subsidies
Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNot applicable
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of otheraccounts receivableNot applicable
3. Long-term equity investment
In RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in subsidiaries | 1,972,630,835.39 | 16,582,629.30 | 1,956,048,206.09 | 1,972,630,835.39 | 16,582,629.30 | 1,956,048,206.09 |
| Investments in associates and joint ventures | 132,674,080.11 | 0.00 | 132,674,080.11 | 147,929,137.23 | 0.00 | 147,929,137.23 |
| Total | 2,105,304,915.50 | 16,582,629.30 | 2,088,722,286.20 | 2,120,559,972.62 | 16,582,629.30 | 2,103,977,343.32 |
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||
| Add invest | Decreased | Withdrawn | Other | ||||
| ment | investment | impairment provision | |||||
| SAPO Photoelectric | 1,910,247,781.94 | 1,910,247,781.94 | 14,415,288.09 | ||||
| Shenzhen Lisi Industrial Development Co., Ltd. | 8,073,388.25 | 8,073,388.25 | |||||
| Shenzhen Beauty Century Garment Co., Ltd. | 14,696,874.34 | 14,696,874.34 | 2,167,341.21 | ||||
| Shenzhen Huaqiang Hotel | 15,489,351.08 | 15,489,351.08 | |||||
| Shenzhen Shenfang Real Estate Management Co., Ltd. | 1,713,186.55 | 1,713,186.55 | |||||
| Shenzhen Shenfang Sungang Real Estate Management Co., Ltd. | 5,827,623.93 | 5,827,623.93 | |||||
| Total | 1,956,048,206.09 | 1,956,048,206.09 | 16,582,629.30 |
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | ||||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | |||||
| I. Joint ventures | ||||||||||||
| Anhui Huapeng Textile Co.,Ltd. | 10,797,023.14 | 10,797,023.14 | 0.00 | |||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 127,906,165.17 | -263,356.48 | 127,642,808.69 | |||||||||
| Subtotal | 138,703,188.31 | 10,797,023.14 | -263,356.48 | 127,642,808.69 | ||||||||
| II. Associated enterprises | ||||||||||||
| Shenzhen Changlian | 2,706,262.38 | 136,047.34 | 2,842,309.72 | |||||||||
| fa Printing and dyeing Company | |||||||||||
| Jordan Garnent Factory | |||||||||||
| Yehui International Co., Ltd. | 6,519,686.54 | -285,403.98 | -4,045,320.86 | 2,188,961.70 | |||||||
| Subtotal | 9,225,948.92 | -149,356.64 | -4,045,320.86 | 5,031,271.42 | |||||||
| Total | 147,929,137.23 | 10,797,023.14 | -412,713.12 | -4,045,320.86 | 132,674,080.11 | 0.00 |
（3）Other note
None
4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Business income | Business cost | Business income | Business cost | |
| Income from Main Business | 36,457,754.34 | 3,657,570.58 | 25,667,881.46 | 3,003,017.42 |
| Other Business income | 1,688,908.01 | 1,688,908.01 | 1,302,040.74 | 1,302,040.74 |
| Total | 38,146,662.35 | 5,346,478.59 | 26,969,922.20 | 4,305,058.16 |
Income-related information:
In RMB
| Type | Division 1 | Division 2 | Total | |
| Types of goods | 36,457,754.34 | 1,688,908.01 | 38,146,662.35 | |
| Including | ||||
| Property lease management and others | 36,457,754.34 | 36,457,754.34 | ||
| Electricity charges | 1,688,908.01 | 1,688,908.01 | ||
| Area | 38,146,662.35 | 38,146,662.35 | ||
| Including | ||||
| Domestic | 38,146,662.35 | 38,146,662.35 |
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation: NoneAt the end of the reporting period, the income amount corresponding to the performance obligations that havebeen signed but not fulfilled or completed is 0.00 yuan. Among them, RMB 0.00 is expected to be recognized asrevenue in 0 year, RMB 0.00 is expected to be recognized as revenue in 0 year, and RMB 0.00 is expected to berecognized as revenue in 0 year.Other note: None
5.Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Long-term equity investment returns accounted for by equity method | -412,713.12 | -2,253,932.85 |
| Investment income from the disposal of long-term equity investment | 20,779.93 | 518,152.41 |
| Investment income of trading financial assets during the holding period | 8,410,570.66 | 11,383,689.05 |
| Dividend income earned during investment holdings in other equity instruments | 1,122,007.80 | 1,418,634.82 |
| Total | 9,140,645.27 | 11,066,543.43 |
6.Other
NoneXVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss | -55.96 | |
| Government subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 8,764,569.01 | Other benefits of government subsidies that are confirmed related to the main business. |
| Other non-business income and expenditures other than the above | 20,092,473.46 | It is mainly for carrying forward unpaid payables and insurance claims income. |
| Less :Influenced amount of income tax | 4,360,819.11 | |
| Influenced amount of minor shareholders’ | 9,707,621.90 |
| equity (after tax) | ||
| Total | 14,788,545.50 | -- |
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition inthe Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to thePublic-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the saidexplanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnings per share
| Profit of report period | Weighted average returns equity(%) | Earnings per share | |
| Basic earnings per share(RMB/share） | Diluted earnings per share(RMB/share) | ||
| Net profit attributable to the Common stock shareholders of Company. | 2.74% | 0.1509 | 0.1509 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | 2.21% | 0.1218 | 0.1218 |
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accountingstandards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
□ Applicable□√ Not applicable
(3)Explanation of the reasons for the differences in accounting data under domestic and foreign accountingstandards. If the data that has been audited by an overseas audit institution is adjusted for differences, thename of the overseas institution should be indicated
4.Other
None