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深纺织B:2021年年度报告(英文版) 下载公告
公告日期:2022-03-17

ShenzhenTextile(Holdings)Co.,Ltd.

2021AnnualReport

March2022

I.ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors,theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.Ms.ZhangJian,TheCompanyleader,Mr.HeFei,ChieffinancialofficerandtheMs.ZhuJingjing,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisannualreport.AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,Investorsandrelatedpersonsshallkeepsufficientriskawareness,andshallunderstandthedifferencesbetweenplans,forecastsandcommitments,andremindinvestorsofinvestmentrisks.Thecompanyhasthemacroeconomicrisks,marketcompetitionrisksandrawmaterialrisks.Investorsareadvisedtopayattentiontoinvestmentrisks.Fordetails,pleaserefertothepossibleriskfactorsthatthecompanymayfaceintheXI"RisksfacingtheCompanyandcountermeasures"intheSectionIII"ManagementDiscussion&Analysis".Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:basedon506,521,849shares,acashdividendof0.50yuan(taxincluded)willbedistributedtoallshareholdersforevery10shares,and0shares(taxincluded)willbegivenasbonusshares.Thecapitalreservewillnotbeconvertedintosharecapital.ThisReporthasbeenpreparedinbothChineseandEnglish.Incaseofanydiscrepancy,theChineseversionshallprevail.

TableofContents

I.ImportantNotice,TableofcontentsandDefinitionsII.CompanyProfile&FinancialHighlights.III.ManagementDiscussion&AnalysisIV.CorporateGovernanceV.Environmental&SocialResponsibilityVI.ImportantEventsVII.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVIII.SituationofthePreferredSharesIX.CorporateBondX.FinancialReport

Documentsavailableforinspection

1.Accountingstatementscarriedwithpersonalsignaturesandsealsoflegalrepresentative,GeneralManager,ChiefFinancialofficer.

2.OriginalofAuditors’ReportcarriedwiththesealofCertifiedPublicAccountantsaswellaspersonalsignaturesofcertifiedPublicaccountants.

3.ThetextsofalltheCompany'sdocumentspubliclydisclosedonthenewspapersandperiodicalsdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod.TheabovedocumentswerecompletelyplacedattheOfficeofSecretariesoftheBoardofDirectorsoftheCompany.

Definition

TermstobedefinedReferstoDefinition
Company/TheCompany/ShenTextileReferstoShenzhenTextile(Holdings)Co.,Ltd
ArticlesofAssociationReferstoArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd
Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernmentReferstoNationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment
TheControllingshareholder/ShenzhenInvestmentHoldingsCo.,Ltd.ReferstoShenzhenInvestmentHoldingsCo.,Ltd.
ShenchaoTechnologyReferstoShenzhenShenchaoTechnologyInvestmentCo.,Ltd.
SAPOPhotoelectricReferstoShenzhenSOPOPhotoelectricCo.,Ltd.
JinjiangGroupReferstoHangzhouJinjiangGroupCo.,Ltd.
NittoDenkoReferstoNittoDenkoCorporation
BeautyCenturyReferstoShenzhenBeautyCenturyGarmentCo.,Ltd.
ShenzhenXieliReferstoShenzhenXieliAutomobileCo.,Ltd.
JinxinInvestmentReferstoLanxiJinxinInvestmentManagementCo.,Ltd.
ChangxingJunyingReferstoChangxingJunyingEqkuityInvestmentPartnership(LP)
HuaijiInvestmentReferstoHangzhouHuaijiInvestmentManagementCo.,Ltd.
ShenzhenTextileImport&ExportReferstoShenzhenTextileImport&ExportCo.,Ltd.
JinhangInvestmentReferstoHangzhouJinhangInvestmentFundPartnership(LP)
AdvantagefordReferstoSuzhouAdvantagefordInvestmentCenter(LP)
Line4ReferstoTTFT-LCDpolarizerIIphaseLine4project
Line5ReferstoTFT-LCDpolarizerIIphaseLine5project
Line6ReferstoTFT-LCDpolarizerIIphaseLine6project
Line7ReferstoIndustrializationprojectofpolaroidforsuperlargesizeTV
“CSRC”ReferstoChinaSecuritiesRegulatoryCommission
CompanyLawReferstoCompanyLawofthePeople’sRepublicofChina
SecuritiesLawReferstoSecuritiesLawofthePeople’sRepublicofChina
TheReportRefersto2021AnnualReport

II.CompanyProfile&FinancialHighlightsI.CompanyProfile

StockabbreviationShenTextileA,ShenTextileBStockcode000045,200045
StockexchangeforlistingShenzhenStockExchange
NameinChinese深圳市纺织(集团)股份有限公司
Chineseabbreviation(Ifany)深纺织
Englishname(Ifany)SHENZHENTEXTILE(HOLDINGS)CO.,LTD
Englishabbreviation(Ifany)STHC
LegalRepresentativeZhangJian
Registeredaddress6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen
PostalcodeoftheRegisteredAddress518031
Historicalchangeofthecompany'sregisteredaddressNo
OfficeAddress6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen
Postalcodeoftheofficeaddress518031
InternetWebSitehttp://www.chinasthc.com
E-mailszfzjt@chinasthc.com

II.Contactpersonandcontactmanner

BoardsecretarySecuritiesaffairsRepresentative
NameJiangPengLiZhenyu
Contactaddress6/F,ShenzhenTextileBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen6/F,ShenzhenTextileBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen
Tel0755-837760430755-83776043
Fax0755-837761390755-83776139
E-mailjiangp@chinasthc.comlizy@chinasthc.com

III.Informationdisclosureandplaced

NewspapersselectedbytheCompanyforinformationdisclosureSecuritiesTimes,ChinaSecurities,ShanghaiSecuritiesDailyandHongkongCommercialDaily.
InternetwebsitedesignatedbyCSRCforpublishingtheAnnualreportoftheCompanywww.cninfo.com.cn
TheplacewheretheAnnualreportispreparedandplacedOfficeoftheBoardofdirectors

IV.ChangesinRegistration

OrganizationCode19217374-9
Changesinprincipalbusinessactivitiessincelisting(ifany)InJuly2012,Thebusinessscopeofthecompanyischangedto"production,textilesprocessing,knitwear,clothing,upholsteryfabrics,belts,trademarkbands,handicrafts(withoutrestrictions);generalmerchandise,thespecialequipmentofthetextileindustry,textileequipmentandaccessories,instruments,standardparts,rawtextilematerials,dyes,electronicproducts,chemicalproducts,mechanicalandelectricalequipment,lightindustrialproducts,officesuppliesanddomestictrade(excludingthefranchise,thecontrolandthemonopolyofgoods);operationofimportandexportbusiness."InDecember2018,approvedbyShenzhenMarketSupervisoryAuthority,thecompany'sbusinessscopewaschangedto:productionandoperationofpolarizersandotheropticalfilmproducts;hotelandpropertyleasingandmanagement;productionandprocessingoftextiles,knitwear,clothing,anddecorativefabrics,Belts,trademarkbelts,handicrafts(excludingrestricteditems);departmentstores,specialequipmentforthetextileindustry,textileequipmentandaccessories,meters,standardparts,textilerawmaterials,dyes,electronicproducts,chemicalproducts,electromechanicalequipment,textileproducts,officeSuppliesanddomestictrade(excludingfranchise,control,andmonopolycommodities);importandexportbusiness.
Changesisthecontrollingshareholderinthepast(isany)InOctober2004,InaccordancewiththeDecisiononEstablishingShenzhenInvestmentHoldingsCo.,Ltd.issuedbyState-ownedAssetsAdministrationCommitteeofShenzhenMunicipalPeople'sGovernment(ShenGuoZiWei(2004)No.223Document),ShenzhenInvestmentManagementCo.,Ltd.,thecontrollingshareholderoftheCompany,andShenzhenConstructionHoldingCompanyandShenzhenCommerceandTradeHoldingCompanymergedintoShenzhenInvestmentHoldingsCo.,Ltd.

V.OtherRelevantInformationCPAsengaged

NameoftheCPAsGrantThorntonInternationalLtd(SpecialGeneaalPartnership)
Officeaddress:5/F,ScitechPalace22JianguomenwaiAvenue,ChaoyangDistrict,Beijing
NamesoftheCertifiedPublicAccountantsasthesignatoriesZhenZhifang,LiuDuoqi

ThesponsorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod.

□Applicable√NotapplicableTheFinancialadvisorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod

□Applicable√NotapplicableVI.SummaryofAccountingdataandFinancialindexWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

20212020ChangesofthisperiodoversameperiodofLastyear(%)2019
Operatingincome(Yuan)2,293,747,892.062,108,964,687.808.76%2,158,184,855.71
Netprofitattributabletotheshareholdersofthelistedcompany(Yuan)61,162,384.2537,267,995.7464.12%19,679,910.43
Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany(Yuan)40,650,013.2218,084,607.04124.78%-41,179,849.56
Cashflowgeneratedbybusinessoperation,net(Yuan)-4,436,980.351,930,932.76-329.78%383,145,788.50
Basicearningpershare(Yuan/Share)0.120.0771.43%0.04
Dilutedgainspershare(Yuan/Share)0.120.0771.43%0.04
WeightedaverageROE(%)2.19%1.36%0.83%0.75%
Endof2021Endof2020Changedoverlastyear(%)Endof2019
Grossassets(Yuan)5,496,647,107.834,969,547,552.2310.61%4,531,399,885.99
Netassetsattributabletoshareholdersofthelistedcompany(Yuan)2,816,795,889.892,766,234,174.391.83%2,727,764,144.36

Thelowerofthecompany’snetprofitbeforeandafterthedeductionofnon-recurringgainsandlossesinthelastthreefiscalyearsisnegative,andtheauditor'sreportofthepreviousyearshowsthattheCompany’sgoingconcernabilityisuncertain.

□Yes√NoThelowerofthenetprofitbeforeandafterthedeductionofthenon-recurringgainsandlossesisnegative.

□Yes√NoVII.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards

1.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderinternationalandChineseaccountingstandards.

□Applicable√NotapplicableNodifference.

2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.

□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.

VIII.MainFinancialIndexbyQuarters

InRMB

FirstquarterSecondquarterThirdquarterFourthquarter
Operatingincome552,950,209.39548,586,197.99570,752,050.04621,459,434.64
Netprofitattributabletotheshareholdersofthelistedcompany42,776,335.8533,826,738.544,921,591.39-20,362,281.53
Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany39,905,925.2621,908,603.63815,872.77-21,980,388.44
NetCashflowgeneratedbybusinessoperation-75,288,004.2722,644,468.02-14,976,407.5563,182,963.45

Whethersignificantvariancesexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedbytheCompany.

□Yes√NoIX.Itemsandamountofnon-currentgainsandlosses

√Applicable□Notapplicable

InRMB

ItemsAmount(2021)Amount(2020)Amount(2019)Notes
Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade)-961,982.35273,229.5854,895,878.65
Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)19,643,379.3329,506,252.6927,547,902.92Otherbenefitsofgovernmentsubsidiesthatareconfirmedrelatedtothemainbusiness.
Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest.989,313.04469,470.61
Othernon-businessincomeandexpendituresotherthantheabove19,964,046.871,310,556.264,582,973.27
Less:Influencedamountofincometax6,025,891.1253,313.3713,886,055.96
Influencedamountofminorshareholders’equity(aftertax)13,096,494.7411,853,336.4612,750,409.50
Total20,512,371.0319,183,388.7060,859,759.99--

Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition

□Applicable√Notapplicable

NoneFortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason.

□Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.

III.ManagementDiscussion&AnalysisI.IndustryinformationoftheCompanyduringthereportingperiodPolarizersarealsoknownaspolaroid,whichcancontrolthepolarizationdirectionofspecificlightbeams.Whennaturallightpassesthroughthepolarizer,thelightwhosevibrationdirectionisperpendiculartothetransmissionaxisofthepolarizerwillbeabsorbed,leavingonlypolarizedlightwhosevibrationdirectionisparalleltothetransmissionaxisofthepolarizer.Thedownstreampolarizerismainlyusedinthepanelindustry.Accordingtodifferentpaneltypes,polarizersmainlyincludeTN,STN,TFTandOLED.Currently,theglobalpolarizermarketisdominatedbypolarizersforTFT-LCDpanels.EachLCDpanelrequirestwopolarizers.TheCompanyisoneofthemajorR&D,productionandsalesenterprisesofpolarizersinChina,andtheleadingenterpriseofpolarizerindustryinChina.TheCompany'spolarizerisoneofthekeybasicmaterialsinthedisplaypanelindustry,anditsdemandisgreatlyaffectedbythefluctuationofthedisplaypanelmarket.Inthefirsthalfof2021,duetothestrongterminaldemandandtheshortageofupstreamrawmaterialsofvariousdisplaypanelscausedbytelecommutinganddistancelearning,thedisplaypanelmarketshowedapatternofshortsupply,thepanelpricecontinuedtorise,andthepolarizermarketwitnessedagoodprosperity.Inthesecondhalfof2021,withtheincreaseofvaccinationrateforCOVID-19,thepandemiceased,themarketdemandgraduallystabilized,andthesupplyofrawmaterialsgraduallyrecovered,thedisplaypanelmarketendeditsupwardcycle,thepricesofdifferenttypesofpanelsdroppedsuccessively,andthemarketdemandforpolarizersgraduallystabilized.II.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod

(1)Thecompany'smainbusinessThecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.Duringthereportingperiod,theCompany'smainbusinesshasnotchangedsignificantly.First,theCompanyfocusedonadjustingitsmarketingstrategy,continuouslypromotingtheoptimizationofcustomerandproductstructure,balancingthesalesshareofmajorpanelcustomers,andenhancingtheanti-riskandprofitability;Second,itstrengthenedtheproductionmanagement,improvedtheproductioncapacityandproductquality,furtherspeededuptheelevator,carriedoutequipmentandtechnicaltransformation,improvedtheautomationlevelinthelaterstage,andcontinuouslyimprovedtheproductioncapacityandproductquality;Third,itcontrolledthecostandreducedthecostthroughanumberofmeasures,suchastheimportofalternativerawmaterialsandthebroadeningofprocurementchannels;Fourth,itcontinuedtoovercometheadverseeffectsoftheCOVID-19,andmadeeveryefforttopromotetheprojectconstructionandrampupofLine7.TheLine7projectwasputintoproductioninmid-Julyandenteredtherampupperiod,withasteadyincreaseinyieldandmachinespeed,layingasolidfoundationfortherapidincreaseofoversizedordersinthewholeyearof2022andtherealizationofproductionlineprofitability;Fifth,itbuilttheR&Dmanagementsystem,strengthenedtheR&Deffortsonnewproducts,newmaterials,productionprocessesandotheraspects,andintroducedmorealternativerawmaterials,amongwhich,thepolarizerforOLEDTVsuccessfullyachievedmassproduction,fillingthedomesticgap;Sixth,iteffectivelyrevitalizedtheexistingassets.TheCompanyimplementedthetransferliquidationworkforsomesubsidiariesandshareholdingenterprises,andconcentratedondevelopingthemainbusinessofpolarizers;Seventh,itimplementedtheepidemicpreventionandcontrolwork,paidattentiontosafeandgreenproduction,focusedonrectification,safetyandenvironmentalprotectionissues,andpromotedthesafeandstable

developmentofenterprises.Duringthereportingperiod,theCompanyachievedoperatingincomeofRMB2.294billion,withayear-on-yearincreaseof8.76%;RealizedatotalprofitofRMB86.23millionwithayear-on-yearincreaseof66.79%;AndachievedanetprofitattributabletoshareholdersoflistedcompaniesofRMB61.16million,withayear-on-yearincreaseof64.12%.Duringthereportingperiod,thenetprofitattributabletoshareholdersoflistedcompaniesincreasedsignificantlycomparedwiththesameperiodoflastyear.Themainreasonsareasfollows:First,in2021,thepolarizermarketwasgenerallystableandimproved,theCompanyfurtheroptimizedtheorderstructure,andtheaveragegrossprofitmarginincreasedsteadily;Second,inordertocopewiththeCOVID-19in2020andsupporttheenterprisestoovercomethedifficultiestogether,theCompanyactivelyrespondedtothecallofShenzhenMunicipalPartyCommittee,MunicipalGovernmentandState-ownedAssetsSupervisionandAdministrationCommissiontoreducetherentforsometenantsinFebruary,MarchandNovember2020,andtherentincomeofsuchperiodincreasedsubstantiallyyearonyear.

(2)MainproductsandtheirpurposesCurrently,theCompanyhas7massproductionlinesforpolarizers,coveringTN,STN,TFT,OLED,3D,dyesheet,opticalfilmfortouchscreenandotherfields,mainlyusedinTV,NB,navigator,Monitor,vehicle,industrialcontrol,instruments,smartphones,wearabledevices,3Dglasses,sunglassesandotherproducts,thecompanyhasbecomeamainstreampanelcompanysuchasHuaxingOptoelectronics,BOE,Sharp,LGD,ShenzhenTianma,Huike,etc.bycontinuouslystrengtheningsaleschannelexpansionandbuildingitsownbrand.Qualifiedsuppliers.TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows:

LinePlaceProductbreadthPlannedcapacityMainprojuct
Line1Pingshan500mm600,000m2TN/STN/Dyesheet
Line2Pingshan500mm1.2millionm2TN/STN/CSTN
Line3Pingshan650mm1millionm2TFT
Line4Pingshan1490mm6millionm2TFT
Line5Pingshan650mm2millinm2TFT
Line6Pingshan1490mm10millionm2TFT/OLED
Line7Pingshan2500mm32millinm2TFT/OLED

(3)Company'sbusinessmodel

ThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win.

(4)MajorfactorsfordrivingtheCompany'sperformance

Referto"III.Analysisoncorecompetitiveness"inthissectionfordetails.

(5)MarketpositionofcompanyproductsCurrently,theCompanyisoneofthemajorR&D,productionandsalesenterprisesofpolarizersinChina,andistheleadingenterpriseinthedomesticpolarizerindustry.TheCompanymainlyfocusesonmediumandlarge-sizedpolarizerproducts,andmeanwhilehastheproductioncapacityofmulti-sizeandmulti-seriesproducts.

Inthefuture,theCompanywillfurtheradjustandoptimizetheproductstructureandcustomerstructure,improvetheinternalmanagementlevel,optimizeandupgradetheproductiontechnologylevel,improvetheproductionefficiencyandproductquality,broadentheprocurementchannels,reducetheproductioncostandconsolidateandimprovethemarketcompetitiveness.

(6)Advantagesanddisadvantagesincompetition

1.CompetitiveedgeSee"III.Analysisofcorecompetitiveness"inthischapterfordetails.

2.CompetitivedisadvantageSee"XI.FuturedevelopmentprospectoftheCompany(III)Possiblerisks"inthischapterfordetails.III.AnalysisOncoreCompetitiveness

(1)Technologyadvantages.SAPOPhotoelectricisthefirstdomesticnationalhigh-techcompanywhichenteredintotheR&Dandproductionofthepolarizer,Weareoneofthelargest,mosttechnicalandprofessionalpolarizerR&Dteamsinthecountryandhasmorethan20yearsofoperatingexperienceinthepolarizerindustry.ProductsincludeTN-type,STN-type,IPS-TFT-type,VA-TFT-type,OLED,vehicle-mountedindustrialdisplay,flexibledisplay,3Dstereoandpolarizerforsunglasses,andopticalfilmfortouchscreens,etc.,Wehaveproprietarytechnologyforpolarizersandnewintellectualpropertyrightsforvariousnewproducts.Asoftheendofthisreport,SAPOPhotoelectricappliedfor115inventionpatentsandwasauthorizedwith89items,amongwhich:36domesticinventionpatents(16patentsgotauthorized);72domesticutilitymodelpatents(69patentsgotauthorized);1overseasinventionpatent(0patentsgotauthorized);6overseasutilitymodelpatents(4patentsgotauthorized).Therewere4nationalstandardsand2industrialstandardsthatweredevelopedbythecompanyareapprovedandthenwillbeimplemented.willbeimplemented.SAPOPhotoelectrichasthreeinnovativeplatforms:GuangdongEngineeringTechnologyResearchCenter,ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratoryandShenzhenEnterpriseTechnologyCenter.ItfocusesontheR&DandindustrializationofLCDpolarizercoreproductiontechnology,thedevelopmentandindustrializationofOLEDpolarizernewproducts,andthelocalizationresearchofpolarizerrawmaterials,amongwhich,massproductionhasbeenachievedforOLEDTVpolarizerproductssuccessfully,fillingthedomesticgap.Byintroducingallkindsofprecisiontestequipment,itimproveslabtrialandpilot-scaletestmethods,andbuildsacollaborativeinnovationplatformforIndustry-University-Researchcooperation,toenhancetheR&Dlevelcomprehensively.

(2)Talentsadvantages.TheCompanyhasapolarizermanagementteamandateamofseniortechnicianswithstrongtechnicalability,longcooperationtime,richexperienceandinternationalvision.ByestablishingatechnicalcooperationrelationshipwithNittoDenkoCorporation,aworld-classpolarizermanufacturer,theCompanylearnsadvancedpolarizerproductionmanagementconcepts,andmeanwhileaccumulatestechnicalexperiencethroughindependentinnovation,improvesitscorecompetitiveness,andgraduallyaccumulatesitsownbrand,technology,operationmanagementandotheradvantages.In2021,theCompanycontinuedtodeepenthemarket-orientedreform,practicedtheconceptof"Don'tracehorses",andsetagoodvanefortalentselectionandemployment;Itimprovedthetalentgrowthchannel,establishedthemanagementmethodofemployeepromotionbyrank,andhelpedemployeesgrowanddevelop;Itimprovedtheincentivemechanismofassessment,andfullyutilizedtheincentiveandspurroleofassessment;Activelyexploredthelong-termincentiveandrestraintoftheCompany'smanagementlevel,employeebenefitawarddistributionmechanism,EmployeeStockOwnershipPlan(ESOP),etc.,andbuiltavaluedistributionmechanismofbenefitsharingandriskpooling.

(3)Marketadvantages.Thecompanyhasgoodcustomergroupsnotonlyindomesticmarketbutinforeignmarket,

comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinthelocalizationforsupporting,closetothepanelmarket,aswellasthestrongsupportofthenationalpolicy.Intermsofmarketdemand,withthemassproductionofthe10.5/11-generationTFT-LCDpanelproductionlinesunderconstructionandplannedforthenextfewyears,theproductioncapacityofhigh-generationTFT-LCDpanelsinmainlandChinawillincreasesignificantlyinthenextfewyears,thecorrespondingdomesticpolaroidfilmmarketdemandhasalsoincreased,andthedomesticmarketisthemostimportantmarketforpolaroidmanufacturers,especiallyinthelarge-sizepolarizermarket.Mainlandpolarizermanufacturerswillusherinimportantindustryopportunities;intermsofmarketdevelopment,thecompanytakesproductionmaterialcontrolasthecore,technologyservicesastheguide,customerneedsasthefocus,organicallycombinesproductionandsales,establishesarapidresponsemechanism,fullyexploitslocalizationadvantages,andusesitsownaccumulatedtechnologyandtalents,doesagoodjobofpeer-to-peerprofessionalservices,formsastablesupplychainandincreasesmarketshare.

(4)Qualityadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.

(5)Managementadvantages.SAPOPhotoelectrichasaccumulatedrichmanagementexperiencesinmorethan20yearsinthemanufacturingofpolarizer,possessingthehomemostadvancedcontroltechnologyoftheproductionmanagementprocessofthepolarizerandqualitymanagementtechnologyandthestablerawmaterialprocurementchannelsoforthmanagementsystems.Thecompanyhadcarriedoutcomprehensivebenchmarkingwork,organizedthemanagementpersonneltolearnadvancedexperiencesfromcustomersandpeerstoforcetheelevationofmanagementability,anddrewontheforeigncompany’smanagementexperiencesofpolarizer,optimizedthecompany'sorganizationalstructure,reducedthemanagerialhierarchyandfurtherenhancedthecompany'smanagementefficiency.Aftertheintroductionofthestrategicinvestor,ThroughclosecooperationwithJinjiangGroup,wecomplementeachother'sstrengths,absorbthevitalityofprivateenterprises,continuetoimplementadvancedmanagementsystems,reasonableincentivemechanisms,etc.,improvetheefficiencyofdecision-making,enhancethespeedofmarketresponse,improvetheresearchanddevelopmentincentivesystem,andalsorealizethedeepintegrationofthevalueofthecompanyanditsemployeesandstimulatesthenewvitalityofthebusiness.

(6)Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry,whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholeindustrychainofthepaneldisplayindustryclusterinShenzhen.Recognizedasanationalhigh-techenterprise,theCompanyisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational,provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,theCompanytightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherlowerits

productioncostandimproveitsproductcompetitiveness.IV.Mainbusinessanalysis

(1)General

2021isthefirstyearofthe14thFive-YearPlan,anditisalsoacrucialyearfortheCompanytodeepenreform,transformationanddevelopment.Inthepastyear,challengedbythesevereandcomplicatedeconomicsituation,theCompanyhasunifiedthoughts,strengthenedconfidence,workedhardtogether,overcamethedifficulties,andmadeeffortstoturnchallengesintoopportunities.IthasmadenewprogressinitsprojectconstructionofLine7,operationandmanagement,andexplorationinpropertyleasing,layingasolidfoundationfortheCompany'sfurthertransformationanddevelopment.

Duringthereportingperiod,theCompanyachievedoperatingincomeofRMB2.294billion,withayear-on-yearincreaseof8.76%;RealizedatotalprofitofRMB86.23millionwithayear-on-yearincreaseof

66.79%;AndachievedanetprofitattributabletoshareholdersoflistedcompaniesofRMB61.16million,withayear-on-yearincreaseof64.12%.Thecompany'soperatingincome,totalprofitandnetprofitattributabletoshareholdersoflistedcompaniesallincreasedcomparedwiththesameperiodoflastyear.Themainreasonsareasfollows:First,in2021,thepolarizermarketwasgenerallystableandimproved,theCompanyfurtheroptimizedtheorderstructure,andtheaveragegrossprofitmarginincreasedsteadily;Second,in2020,inordertocopewiththeCOVID-19in2020andsupporttheenterprisestoovercomethedifficultiestogether,theCompanyactivelyrespondedtothecallofShenzhenMunicipalPartyCommittee,MunicipalGovernmentandState-ownedAssetsSupervisionandAdministrationCommissiontoreducetherentforsometenantsinFebruary,MarchandNovember2020,andtherentincomeofsuchperiodincreasedyearonyear.Reviewofthecompany'skeyworkscarriedoutin2021asfollows:

1.AchievedsustainedprofitabilityinitsmainpolarizerbusinessIn2021,first,theCompanyfocusedonadjustingitsmarketingstrategy,continuouslypromotingtheoptimizationofcustomerandproductstructure,balancingthesalesshareofmajorpanelcustomers,andenhancingtheanti-riskandprofitability;Second,itstrengthenedtheproductionmanagement,improvedtheproductioncapacityandproductquality,furtherspeededuptheelevator,carriedoutequipmentandtechnicaltransformation,improvedtheautomationlevelinthelaterstage,andcontinuouslyimprovedtheproductioncapacityandproductquality;Third,itcontrolledthecostandreducedthecostthroughanumberofmeasures,suchasthesubstitutionofrawmaterialsandthebroadeningofprocurementchannels;Fourth,itincreasedtheintroductionandselectionoftalentsandenhancedthecompetitivenessoftheteam.Meanwhile,theCompanyestablishedtheR&Dmanagementsystem,strengthenedtheR&Dofnewproducts,newmaterials,productionprocessesandotheraspectsandtheimportofalternativerawmaterials,anddeveloped,evaluatedandpromoted93kindsofmaterialsintotal.In2021,ithad8patentapplications,including4nationalinventionpatentsand4utilitymodelpatents;anditwasgrantedwith10patents,including2inventionpatentsand8utilitymodelpatents.

2.Itstextilebusinessremainedstable,anditspropertyleasingandmanagementbusinessweresteadilyimproving

In2021,theCompanymadegreateffortstoovercometheinfluenceofexchangeratefluctuation,COVID-19andrisingrawmaterialprices,andtookeffectivemeasurestostrengthenproductR&D,expandnewmarketareas,andrealizesustainedprofitabilityoftextilebusiness.In2021,thedownturnoftherealeconomybroughtcertainpressuretopropertyleasinganditsmanagementbusiness.TheCompanytooktheinitiativetointroducehigh-qualitynewtenants,andstrengthenedpropertymanagement,continuouslyimprovedservicequality,paidcloseattentiontothepreventionandcontrolof

COVID-19,andachievedagoodsituationofdouble100%forbothrentalrateandrentalrecoveryrate,withpropertyleasinganditsmanagementbusinessbothgrowingsteadily.

3.StrivedtopromotetheconstructionandrampupofLine7InMarch2021,theCompanysetupa100-dayattackworkinggroupforLine7project,launchedaspecialactivityof"Productionof100daystopaytributetothe100thanniversaryofthefoundingoftheParty",acceleratedtheprogressofchemicaltestrunofLine7project,andfinallycompletedtheperformancestabilitytestruninJuly2021,andstartedthetestrunramp-up.InordertospeeduptheclimbingprocessofLine7project,effectivelypromotetechnicalupgradingandcustomerintroduction,andachievebetteroperatingresults,theCompanyorganizedthespecialworkof"Strivingfor50days"formassproductionrampupofLine7inmid-November,2021,focusingonimprovingthemaintechnicalindicatorssuchasspeedandyield.

AsofDecember31,2021,Line7wasinthestageofcapacityrampup,themaintechnicalindicatorssuchasspeedandyieldwerecontinuouslyimproved,andtheintroductionofmajorcustomerproductswasprogressingsteadily.

4.Organizedepidemicpreventionandcontroleffectively,andachievedworksafetyinastableandorderlymanner

In2021,theCompanyattachedgreatimportancetoepidemicpreventionandcontrolandworksafetymanagement,strengthenedbottom-linethinking,overcameunawarenessandflukemind,andimplementeditstrictlyandtightly.First,itorganizedtheworksafetyinspectionofthird-partyorganizationstoinvestigateandrectifythepotentialsafetyhazardsofoldpropertyequipmentassets.Second,itactivelyimplementedtheupgradingandtransformationofsafetyandenvironmentalprotection,andpracticedthesustainabledevelopmentproductionconceptofgreenenvironmentalprotection,energysavingandconsumptionreduction.SAPOIndustrialParkwonthe"OutstandingGreenEnvironment-friendlyFactoryAward"of"GreenAsiaPacific2021EnvironmentalProtectionAchievementAward".Third,itcontinuedtoimplementthenormalmanagementofepidemicpreventionandcontrol,strengthenedorganizationalleadership,andbuiltanepidemicpreventionnetworkinanall-roundway.Theepidemicpreventionandcontrolworkspecialclassconductedandcoordinatedtheeffectiveepidemicpreventionmechanismlevelbylevel,ensuredthatalldeploymentmeasureswereimplementedsolidly,andeffectivelyprotectedthelifesafetyofemployees.

5.Insistedonstrengtheningthefoundation,andconstantlyconsolidatedthegrassrootspartybuildingwork

In2021,underthestrongleadershipofthePartyCommitteeofShenzhenState-ownedAssetsSupervisionandAdministrationCommissionandthePartyCommitteeofShenzhenInvestmentHoldings,thePartyCommitteeoftheCompanyadheredtotheguidanceofXiJinping'snewerasocialismwithChinesecharacteristics,thoroughlyimplementedthespiritofthe19thNationalCongressoftheCommunistPartyofChinaanditspreviousplenarysessions,firmlygraspedthegeneralrequirementsofpartybuildinginthenewera,carriedoutin-depthstudyandeducationofpartyhistory,focusedonwarmlycelebratingthe100thanniversaryofthefoundingoftheCommunistPartyofChina(CPC),closelyfocusedonthequalityimprovementactionsoflistedcompanies,solidlypromotedthedeploymentandimplementationof"six-degreepartybuilding",andtheCompany'shigh-qualitydevelopmentwithhigh-qualitypartybuilding.

(2)Revenueandcost

1.ComponentofBusinessIncome

InRMB

20212020Increase
AmountProportionAmountProportion/decrease
Totaloperatingrevenue2,293,747,892.06100%2,108,964,687.80100%8.76%
OnIndustry
Manufacturing2,154,422,129.3593.93%2,012,255,019.0395.41%7.07%
LeaseandManagementofProperty111,568,500.554.86%85,177,866.034.04%30.98%
Other27,757,262.161.21%11,531,802.740.55%140.70%
OnProducts
LeaseandManagementofProperty111,568,500.554.86%85,177,866.034.04%30.98%
Textile54,932,578.582.39%60,503,325.782.87%-9.21%
Polarizersheet2,099,489,550.7791.53%1,951,751,693.2592.54%7.57%
Other27,757,262.161.21%11,531,802.740.55%140.70%
Area
Domestic2,039,625,757.1688.92%1,768,190,864.7583.84%15.35%
Overseas254,122,134.9011.08%340,773,823.0516.16%-25.43%
Sub-salemodel
Credit2,154,422,129.3593.93%2,012,255,019.0395.41%7.07%
Cashonsale139,325,762.716.07%96,709,668.774.59%44.07%

2.SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%

√Applicable□Notapplicable

InRMB

TurnoverOperationcostGrossprofitrate(%)Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%)Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%)Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%)
OnIndustry
Manufacturing2,154,422,129.351,877,251,173.5012.87%7.07%5.10%1.63%
LeaseandManagementofProperty111,568,500.5522,996,155.2979.39%30.98%5.04%5.09%
OnProducts
Polarizersheet2,099,489,550.1,828,737,245.12.90%7.57%5.24%1.95%
7798
LeaseandManagementofProperty111,568,500.5522,996,155.2979.39%30.98%5.04%5.09%
Textile54,932,578.5848,513,927.5211.68%-9.21%0.10%-8.21%
Area
Domestic2,039,625,757.161,692,710,152.6517.01%15.35%10.46%3.67%
Overseas254,122,134.90215,809,260.6315.08%-25.43%-23.44%-2.20%
Sub-salemodel
Credit2,154,422,129.351,877,251,173.5012.87%7.07%5.10%1.63%
Cashonsale139,325,762.7131,268,239.7877.56%44.07%11.28%6.61%

Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestonyear’sscopeofperiod-end.

□Applicable√Notapplicable

3.WhethertheCompany’sPhysicalSalesIncomeExceededServiceIncome

√Yes□No

ClassificationItemsUnit20212020Changes
PolarizersheetSales10,000squaremeters2,517.632,131.2818.13%
Production10,000squaremeters2,518.622,124.9618.53%
Stock10,000squaremeters139.51121.6914.64%
KnittedclothingSales10,000pieces269358-24.86%
Production10,000pieces280385-27.27%
Stock10,000pieces918013.75%

Explanationforayear-on–yearchangeofover30%

□Applicable√Notapplicable

4.DegreeofPerformanceoftheSignificantSalesContractSigneduptothisReportPeriod

□Applicable√Notapplicable

5.ComponentofbusinesscostIndustrycategory

InRMB

IndustryclassificationItems20212020Increase/Decrease(%)
AmountProportionintheoperatingcosts(%)AmountProportionintheoperatingcosts(%)
ManufacturingPolarizersheet,Knittedclothing1,877,251,173.5098.36%1,786,199,780.2498.45%5.10%
LeaseandManagementofPropertyRental,Accommodation22,996,155.291.20%21,892,925.241.21%5.04%
OtherOther8,272,084.490.43%6,205,689.540.34%33.30%

InRMB

ClassificationofproductsItems20212020Increase/Decrease(%)
AmountProportionintheoperatingcosts(%)AmountProportionintheoperatingcosts(%)
PolarizersheetDirectmaterials1,460,202,220.5076.51%1,469,416,728.0480.99%-0.63%
PolarizersheetDirectlabor56,423,729.382.96%50,884,076.282.80%10.89%
PolarizersheetPowercost49,263,443.022.58%44,834,128.462.47%9.88%
PolarizersheetManufacturingcost262,847,853.0813.77%172,598,639.689.51%52.29%
KnittedclothingDirectmaterials29,157,370.181.53%29,570,175.971.63%-1.40%
KnittedclothingDirectlabor9,659,820.670.51%10,388,237.670.57%-7.01%
KnittedclothingPowercost968,232.620.05%1,256,258.980.07%-22.93%
KnittedclothingManufacturingcost8,728,504.050.46%7,251,535.160.40%20.37%

Note

None

6.WhetherChangesOccurredinConsolidationScopeintheReportPeriod

□Yes√No

7.RelevantSituationofSignificantChangesorAdjustmentoftheBusiness,ProductorServiceintheCompany’sReportPeriod

□Applicable√Notapplicable

8.SituationofMainCustomersandMainSupplierInformationofMainCustomers

Totalsalesamounttotop5customers(RMB)1,600,042,900.00
Proportionofsalestotop5customersin69.76%
Proportionofthesalesvolumetothetopfivecustomersinthetotalsalestotherelatedpartiesintheyear0.00%

InformationoftheCompany’stop5customers

NoNameAmount(RMB)Proportion(%)
1Customer1673,734,600.0029.37%
2Customer2424,287,100.0018.50%
3Customer3256,965,400.0011.20%
4Customer4135,380,400.005.90%
5Customer5109,675,400.004.78%
Total--1,600,042,900.0069.76%

Othernote

□Applicable√NotapplicablePrincipalsuppliers

Totalpurchaseoftop5Suppliers(RMB)849,718,112.61
Percentageoftotalpurchaseoftop5suppliersIntotalannualpurchase(%44.50%
Proportionofpurchaseamountfromthetop5suppliersinthetotalpurchaseamountfromtherelatedpartiesintheyear0.00%

Informationaboutthetop5suppliers

NoNameAmount(RMB)Proportion(%)
1Supplier1226,545,838.6511.86%
2Supplier2191,071,560.0610.01%
3Supplier3151,236,748.247.92%
4Supplier4147,731,715.417.74%
5Supplier5133,132,250.246.97%
Total--849,718,112.6144.50%

Othernote

□Applicable√Notapplicable

(3)Expenses

InRMB

20212020Increase/Decrease(%)Notes
Saleexpenses37,973,336.3928,644,230.8732.57%Mainlyduetoattributabletothepurchaseofnewmaterialinsuranceandtheincreaseinsalesstaffremuneration.
Administrative122,088,830.15105,094,934.3616.17%
expenses
Financialexpenses-130,344.098,287,888.28-101.57%Mainlyduetotheyear-on-yearincreaseinforeignexchangegains.
R&Dexpenses103,508,764.5367,160,964.2254.12%Mainlyduetotheincreaseinresearchanddevelopmentinvestmentinthecurrentperiod.

(4)ResearchandDevelopment

√Applicable□Notapplicable

NameofmainR&DprojectProjectpurposeProjectprogressGoaltobeachievedExpectedimpactonthefuturedevelopmentoftheCompany
R&Dofkeytechnologiesofhigh-performancepolarizerforlarge-sizedisplaypanelAchievemassproductionofhigh-performancepolarizersforlarge-sizedisplaypanelscompletedRealizemassproductionsupplyandapplicationofdomesticallyproducedTVproductsEnrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness
DevelopmentofPOLProductsforTVwithlargesizeandhighPPItosatisfythemarket'sneedsSomeproductshavepassedtheclientopticalverificationcompleteclientauthenticationWiththecontinuousincreaseof4Kand8Kproductsofpanelmanufacturers,thedevelopmentofthisprojectcanmeetthemarketdemandforsuchpolarizers
DevelopmentofthinNBproductsToachievelarge-scaleproductionoftheproductcompletedRealizemassproductionsupplyImprovemarketcompetitivenessinnotebookcomputerfield
ProductdevelopmentofvehiclepolarizersMeetproductentry-levelverificationrequirementscompletedStabilizethecontinuousproductionprocess,determinetheproductionprocessguideline,andmeettheentry-levelverificationrequirementsoftheproductImprovethecompany'sproductcompetitivenessandmeetcustomerneeds
DevelopmentofOLEDTVproductsToachievelarge-scaleproductionoftheproductpartiallycompletedRealizemassproductionsupplyEnrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness;laythefoundationforthesubsequentdevelopmentofhigh-opticalproducts
ResearchandapplicationofkeytechnologiesofpolarizersforIPSmobilephoneToachievelarge-scaleproductionoftheproductcompletedRealizemassproductionsupplyEnrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness
R&DofpolarizertechnologyforOLEDmobilephoneHavetheproductioncapacityofthisproductcompletedTechnicalindicatorsreachacertainlevel,withtheproductioncapacityoftheproductPromotethelocalizationprocessofpolarizerproductsforOLEDmobilephones
DevelopmentofOLEDwearableapplicationtosatisfythemarket'sneedscompletedCompletecustomerverificationofaproductnhancethecompany'sproductcompetitiveness
Developmentofultra-wideVAproductsToachievelarge-scaleproductionoftheproductcompletedRealizemassproductionsupplyenhancethecompany'sproductcompetitiveness
Developmentofultra-wideIPSproductsHavetheproductioncapacityofthisproductcompletedTechnicalindicatorsreachacertainlevel,withtheproductioncapacityoftheproductenhancethecompany'sproductcompetitiveness
Productdevelopmentofblack-and-whitedisplaypolarizerandsunglassesToachievelarge-scaleproductionoftheproductcompletedRealizemassproductionsupplyEnrichthecompany'sproductcategoriesandenhancethecompany'sproductcompetitiveness
Developmentofenvironment-friendlyPSAadhesiveFulfillthesocialresponsibilityofenvironmentalprotectioncompletedCompleteproductdevelopmentandputintoproductionuseProtectthehealthofemployeesandmakeduecontributionstoimprovingtheenvironment;canachievestablesupplytocustomersandrelievesupplyrisks
R&Dofkeytechnologyforpolarizerextensionsatisfycustomer'srequestcompletedTheprocesscanmeetmassproductionsupplyIncreaseproductioncapacityandreducematerialcosts;improvethecompany'sproductperformance

Company'sresearchanddevelopmentpersonnelsituation

20212020Increase/decrease
NumberofResearchandDevelopmentpersons(persons)145169-14.20%
ProportionofResearchandDevelopmentpersons10.61%12.34%-1.73%
AcademicstructureofR&Dpersonnel——————
AgecompositionofR&Dpersonnel——————

TheCompany'sR&Dinvestmentsituation

20212020Increase/decrease
AmountofResearchandDevelopmentInvestment(InRMB)103,508,764.5367,160,964.2254.12%
ProportionofResearchandDevelopmentInvestmentofOperationRevenue4.51%3.18%1.33%
AmountofResearchandDevelopmentInvestmentCapitalization(InRMB)0.000.00
ProportionofCapitalizationResearchandDevelopmentInvestmentofResearchandDevelopmentInvestment0.00%0.00%

ReasonsandinfluenceofsignificantchangesinR&DpersonnelcompositionoftheCompany

□Applicable√NotapplicableTheReasonoftheProminentChangeinTotalAmountofResearchandDevelopmentInputOccupyingtheBusinessIncomeYearonYear

□Applicable√NotapplicableReasonsforthedrasticchangeofcapitalizationrateofR&Dinvestmentanditsrationalityexplanation

□Applicable√Notapplicable

(5)CashFlow

InRMB

Items20212020Increase/Decrease(%)
Subtotalofcashinflowreceivedfromoperationactivities2,433,304,906.362,067,129,172.7917.71%
Subtotalofcashoutflowreceivedfromoperationactivities2,437,741,886.712,065,198,240.0318.04%
Netcashflowarisingfromoperatingactivities-4,436,980.351,930,932.76-329.78%
Subtotalofcashinflowreceivedfrominvestingactivities1,154,092,748.713,253,008,414.70-64.52%
Subtotalofcashoutflowforinvestmentactivities1,412,622,193.083,572,079,379.14-60.45%
Netcashflowarisingfrominvestmentactivities-258,529,444.37-319,070,964.4418.97%
Subtotalcashinflowreceivedfromfinancingactivities339,219,000.00342,660,000.00-1.00%
Subtotalcashoutflowforfinancingactivities50,944,964.1312,855,758.88296.28%
Netcashflowarisingfromfinancingactivities288,274,035.87329,804,241.12-12.59%
Netincreaseincashandcashequivalents24,071,196.779,690,648.77148.40%

Notestotheyear-on-yearchangeoftherelevantdata

□Applicable√NotapplicableReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany

√Applicable□Notapplicable

Duringthereportingperiod,thenetcashflowfromtheCompany'soperatingactivitieswas-4,436,980.35yuan.Thenetprofitintheconsolidatedstatementofthecompanywas75,114,666.20yuan,withsignificantdifferencebetweenthetwo,mainlyduetouseofcreditsalesintheformofsales.ThedifferenceDuringthe

reportingperiodbetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesandthenetprofitoftheconsolidatedstatementisdetailedinSection10,VII,58(1)"SupplementaryInformationonCashFlowStatement"ofthisreport.V.AnalysisofNon-coreBusiness

√Applicable□Notapplicable

InRMB

AmountProportionintotalprofitExplanationofcauseSustainable(yesorno)
Investmentincome22,663,013.0626.28%Obtainingdividends,contractfeesandMoneyfundinvestmentincome,etc.Havethesustainability
Gainsandlossesonchangesinfairvalue2,150,943.402.49%Mainlyduetothechangesinthenon-currentfinancialassetsandStructuraldepositvalueHavethesustainability
Impairmentofassets-83,508,720.33-96.84%Mainlyfromtheprovisionofinventorydepreciationloss.Havethesustainability
Non-operatingincome21,285,786.6424.68%Mainlyinsuranceclaims.Notsustainable.
Non-operatingexpense1,686,263.351.96%Mainlyduetothelossofnon-currentassetsbeingdestroyedandscrapped.Notsustainable.
Otherincome19,643,379.3322.78%Mainlyforgovernmentsubsidies.Havethesustainability

VI.ConditionofAssetandLiabilities

(1)ConditionofAssetCausingSignificantChange

InRMB

Endof2021Endof2020Proportionincrease/decreaseNotestothesignificantchange
AmountProportioninthetotalassets(%)AmountProportioninthetotalassets(%)
Monetaryfund302,472,828.605.50%279,087,236.955.62%-0.12%
Accountsreceivable479,998,708.578.73%547,310,217.9011.01%-2.28%
Inventories667,461,447.0312.14%480,847,581.449.68%2.46%
Investmentrealestate106,217,779.761.93%110,572,471.922.23%-0.30%
Long-termequityinvestment133,022,325.772.42%147,929,137.232.98%-0.56%
Fixedassets2,424,741,252.8644.11%790,183,905.3815.90%28.21%MainlyduetothetransferoftheLine7project.
Constructioninprocess71,482,031.081.30%1,301,750,141.1226.19%-24.89%MainlyduetothetransferoftheLine7project.
Userightassets9,221,189.370.17%0.17%
Short-termborrowing37,575,113.830.68%0.68%
Contractliabilities68,955.210.00%279,631.270.01%-0.01%ThiswasmainlyduetotheincreaseinloansborrowedfortheLine7projectduringtheyear.
Long-termborrowing683,016,243.2512.43%343,100,174.356.90%5.53%
Leaseliabilities4,243,855.710.08%0.08%
Transactionfinancialassets586,540,735.1610.67%684,617,260.0613.78%-3.11%
Otherreceivables140,185,750.402.55%5,265,002.710.11%2.44%Mainlyduetothepaymentofcustomsdepositsfornewlyimportedrawmaterials.

Overseasassetsaccountforarelativelyhighproportion.

□Applicable√Notapplicable

(2)AssetandLiabilitiesMeasuredbyFairValue

√Applicable□Notapplicable

InRMB

ItemsOpeningamountGain/LossonfairvaluechangeinthereportingperiodCumulativefairvaluechangerecordedintoequityImpairmentprovisionsinthereportingperiodPurchasedamountinthereportingperiodSoldamountinthereportingperiodOtherchangesClosingamount
Financialassets
1.Financialassetsmeasuredatfairvaluethrough684,617,260.06712,000,000.00810,076,524.90586,540,735.16
profitorloss(excludingderivativefinancialassets)
4.OtherequityInstrumentInvestment190,607,427.54-4,573,597.82186,033,829.72
Subtotaloffinancialassets875,224,687.60-4,573,597.820.00712,000,000.00810,076,524.900.00772,574,564.88
non-currentfinancialassets30,650,943.402,150,943.402,150,943.4030,650,943.40
Total905,875,631.002,150,943.40-4,573,597.820.00712,000,000.00812,227,468.300.00803,225,508.28
FinancialLiability0.000.00

Otherchanges

NoneDidgreatchangetakeplaceinmeasurementoftheprincipalassetsinthereportingperiod?

□Yes√No

(3)RestrictedassetrightsasoftheendofthisReportingPeriod

SubsidiarySAPOPhotoelectricusespartofitsself-ownedpropertiestoapplyforamortgageloanfromasyndicatewithBankofCommunicationsCo.,Ltd.ShenzhenBranchastheleadbank,andthecompanyprovidesguaranteesforthemortgageloan.Fordetails,pleaserefertohttp://www.cninfo.com.cn.cninfo.com.cn)"AnnouncementontheCompany'sApplicationforBankMortgageGuaranteesforSubsidiaries"(No.:2020-19),"AnnouncementontheProgressoftheCompanyProvidingGuaranteesforSubsidiaries"(No.:2020-46)VII.Investmentsituation

(1)General

□Applicable√Notapplicable

(2)ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod

□Applicable√Notapplicable

(3)SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod

□Applicable√Notapplicable

(4)InvestmentofFinancialAsset

1.Securitiesinvestment

□Applicable√Notapplicable

2.InvestmentinDerivatives

□Applicable√NotapplicableTheCompanyhadnoinvestmentinderivativesinthereportingperiod.

(5)Applicationoftheraisedcapital

√Applicable□Notapplicable

1.Generalapplicationoftheraisedfunds

√Applicable□Notapplicable

InRMB

YearofraisingWayofraisingTotalraisedcapitalTotalamountoftheraisedfundusedattheperiodTotalamountofRaisedFundsAmountofraisedcapitalofwhichthepurposewaschangedinthereportperiodAccumulativeamountofraisedcapitalofwhichthepurposehasbeenchangedProportionofraisedcapitalofwhichthepurposehasbeenchanged(%)TotalAmountoftheUnusedRaisedFundattheCurrentPeriodUseandWhereasoutsoftheUnusedRaisedFundAmountoftheRaisedFundwithover2Years’Idling
2013Non-publicissue96,175.10.2676,261.7030,927.2232.16%1,228.01Transfertothecompany'sownaccountforpermanentreplenishmentof
workingcapital
Total--96,175.10.2676,261.7030,927.2232.16%1,228.01--0
Notetouseofraisedcapital
Duringthereportingperiod,theCompanyactuallyusedtheraisedfundsof2,600yuan,andtheaccumulateduseofraisedfundswas762.617millionyuan,ofwhich100yuanofraisedfundswasactuallyusedforthesecondphaseoftheline6projectofTFT-LCDpolarizer-andtheaccumulateduseofraisedfundsforitwas352.6635millionyuan;theactualuseoftheraisedfundsforthe7thlineprojectwas2,500yuan,withtheaccumulateduseofraisedfundsforitwas409.9535millionyuan.

2.Promisedprojectsofraisedcapital

√Applicable□Notapplicable

InRMB10,000

CommittedinvestmentprojectsandinvestmentProjectchanged(includingpartialchange)TotalraisedcapitalinvestedascommittedTotalinvestmentafteradjustment(1)AmountinvestedinthereportingperiodAccumulatedamountinvestedattheendofthereportingperiod(2)Investmentprogressendedthereportingperiod(%)(3)=(2)(1)DatewhentheprojecthasreachedthepredictedapplicablestatusBenefitrealizedinthereportingperiodHasthepredictedresultberealizedHasanymaterialchangetakenplaceinfeasibility
Committedinvestmentprojects
Phase-IIprojectofpolarizersheetforTFT-LCD(Line6)Yes96,175.170,0340.0135,266.3550.36%June7,20186,337.63NoYes
Theutilizationofthesurplusraisedfunds(Line7project)No0.2540,995.35July11,2021-10,718.52NotapplicableNo
Subtotalofcommittedinvestmentprojects--96,175.170,0340.2676,261.7-----4,380.89----
Subtotalofcommittedinvestment
None
Total--96,175.170,0340.2676,261.7-----4,380.89----
Situationaboutnotcominguptoschemedprogressorexpectedrevenueandthereason(inspecificproject)Notapplicable
NotestosignificantchangeinfeasibilityoftheprojectAccordingtothelatestsituationoftheindustrydevelopment,theoriginalsecondphaseconstructionschemeoftheTFT-LCDpolarizerwasoptimized,andthenaccordingtotheresultsconcludedbytheexperts,thecompanydecidedtocontinuetopromotetheconstructionoftheNo.6lineproject.Atthesametime,inthelightoftherewasalargefundsgapbetweentheactualraisedcapitalandtheplannedraisedcapitalforthesecondphaseproject,thenbycomprehensiveconsiderationsofthecompany’sproductionlinescaleandtheoperationpressure,thecompanydecidedtoterminatetheprojectofNo.7line,andthecorrespondingamountoffundsof309.2722millionyuan(includinginterests)forNo.7lineprojectshallbechangedforpermanentlysupplementingtheliquidity.TheProposalonAlterationoftheUseofPartoftheRaisedCapitalfortheSecondPhaseProjectofTFT-LCDPolarizerwasexaminedandapprovedinthe2015annualshareholdermeetingonApril21,2016..
Amount,applicationandapplicationprogressoftheuncookedproceedsNotappli8cable
AboutthechangeoftheimplementationsiteoftheprojectsinvestedwiththeproceedsNotappli8cable
AdjustmentoftheimplementationwayofinvestmentfundedbyraisedcapitalNotappli8cable
AbouttheinitialinvestmentintheprojectsplannedtobeinvestedwiththeproceedsandthereplacementNotappli8cable
UsingtheidleproceedstosupplementtheworkingcapitalontemporarybasisNotappli8cable
BalanceoftheproceedsinprocessApplicable
1.OnAugust31,2018,inthecompany'ssecondextraordinaryshareholders’meetingof2018,the
ofprojectimplementationandthecause“ProposalontheUseofSurplusRaisedFundstoInvestintheLarge-scaleTVPolarizerIndustrializationProject(Line7)”wasreviewedandapproved,agreeingtocontinuetodeposit134.7172millionyuanintheoriginalspecialaccountofraisedfundsforthefollow-upexpenditureofline6projectandtheremainingsurplusraisedfundsshallbeusedfortheinvestmentofline7project,withtheamountshallbesubjecttotheinterestsettlementofthebankonthedaythefundsaretransferredout.Accordingtotheusearrangementforthesurplusraisedfunds,onNovember12,2018,theCompanytransferredthesurplusraisedfundsfortheNo.6lineprojectby405.8311millionyuantothenewlyopenedspecialaccountofraisedfundsforprojectofLine7,whichwillbeusedfortheultra-large-sizeTVpolarizerindustrializationproject(Line7),andasofNovember12,2018,thebalanceofthespecialaccountforraisedfundsofline6was80.3569millionyuan.Thereasonsforthesurplusoftheraisedfundswereasfollows:1.theinterestincomeandtheinvestmentincomeofthebankwealthmanagementproductsweregeneratedduringthedepositoftheraisedfunds;2.tograsptheopportunityoftherapiddevelopmentofthedomesticpolarizerindustryandacceleratetheconstructionoftheNo.6lineproject,theCompanyhadinadvanceinvestedsomefundsinthesecondphaseofthepolarizerprojectofLine6,andinviewofthefactthatthefundsraisedatthetimewereinplace,astherewasalargefundinggapbetweentheactualraisedfundsandtheplannedandtheoriginalinvestmentprojectneededtobere-demonstrated,theCompanydidnotreplacetheadvanceinvestmentintimeaftertheraisedfundswerereceived;3.thesecondphaseofthepolarizerprojectwassubsidizedbytheNationalDevelopmentandReformCommissionandtheShenzhenMunicipalGovernmentaftertheprojectwasestablished,whichhadbeenallputintotheprojectconstructionaccordingtotherequirements,therebyreducedtheinvestmentoftheraisedfundsaccordingly;4.toensuretheoriginalinvestmentprojecttohaveagoodmarketprospectandprofitability,theCompanyoptimizedtheconstructionplanoftheoriginalraised-fundsinvestmentprojectofNo.6line,anditadoptedthecostcontrol,optimizedtheproductionprocessandtookothermeasurestoachievereasonablesavingsunderthepremiseofensuringtheoriginaldesignandtechnicalconditionsoftheproject.2.OnMarch10,2021,theCompanyheldthesecondmeetingoftheEighthBoardofDirectors,whichdeliberatedandapprovedtheProposalonthePermanentReplenishmentofWorkingCapitalwithSurplusRaisedFunds.InviewofthecompletionofLine6ofthephaseIIprojectofpolarizerforTFT-LCD,thesurplusraisedfundsofLine6ofRMB12,280,100(includingtheaccumulatednetamountofbankdepositinterestminusbankfeesandRMB7,307,100ofequipmentbalance)willbeusedtopermanentlyreplenishworkingcapitalfordailyproductionandoperationuse.Thereasonsforthesurplusoftheraisedfundsareasfollows:1.DuringtheimplementationofLine6project,theCompanystrictlyfollowedtherelevantregulationsontheuseofraisedfunds,carefullyusedtheraisedfunds,strengthenedthecostcontrol,supervisionandmanagementduringtheprojectconstructionandinitialoperationonthepremiseofensuringthequalityofraisedinvestmentprojects,reasonablyreducedtheprojectinvestmentamountandinitialworkingcapital,andsavedtheexpenditureofraisedfunds;Duringtheimplementationoftheproject,idleraisedfundsgeneratedcertaininterestincome.
AboutapplicationandstatusoftheproceedsunusedByDecember31,2021,theLine6projecthadbeenclosed,andthesurplusraisedfundsofspecialaccountofRMB12,280,100wastransferredtotheCompany'sownaccountforpermanentreplenishmentofworkingcapital.OnMarch29,2021,thebankcancellationprocedureforspecialaccountofLine6wascompleted.AlltheraisedfundsinthespecialaccountofLine7projecthavebeenusedasrequired,andthebankcancellationproceduresforspecialaccountofLine7werecompletedon
March29,2021.
ProblemsexistinginapplicationoftheproceedsandtheinformationdisclosureorotherissuesByDecember31,2021,thephaseIIofLine6projecthadaccumulatedinvestmentofRMB699,544,200,accountingfor99.89%ofthechangedtotalinvestmentofRMB700,340,000,ofwhichtheactuallypaidinvestmentwasRMB689,650,000(RMB352,663,500ofraisedfundsandRMB336,986,500ofself-ownedfundsandgovernmentfunds).ByDecember31,2021,theaccumulativeinvestmentcontractamountofLine7projectwasRMB2,091,244,100,andtheactualpaymentwasRMB2,017,518,400(RMB409,953,500ofraisedfunds,RMB1,607,564,900ofself-ownedfundsandgovernmentfunds).

3.Changesofraisedfundsprojects

□Applicable√NotapplicableNoneVIII.Salesofmajorassetsandequity

(1)Salesofmajorassets

□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.

(2)Salesofmajorequity

□Applicable√NotapplicableIX.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies

√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany

InRMB

CompanynameTypeMainbusinessRegisteredcapitalTotalassetsNetassetsTurnoverOperatingprofitNetProfit
ShenzhenLisiIndustrialCo.,Ltd.SubsidiaryDomesticTrade,Propertymanagement2,360,000.0035,749,173.4728,821,110.359,073,086.792,255,295.592,356,126.60
ShenzhenHuaqiangHotelSubsidiaryAccommodation,businesscenter;10,005,300.0022,050,733.7920,368,204.896,926,914.89298,548.24285,092.35
ShenzhenShenfangRealEstateManagementCo.,Ltd.SubsidiaryPropertymanagement1,600,400.0011,649,993.836,951,045.0321,854,935.993,368,024.112,518,397.08
ShenzhenBeautyCenturyGarmentCo.,Ltd.SubsidiaryProductionoffullyelectronicjacquardknittingwholeshape13,000,000.0046,067,490.4018,072,122.9355,169,650.79630,605.93545,674.66
SAPOPhotoelectricSubsidiaryProductionandsalesofpolarizer583,333,333.004,237,652,544.022,858,788,617.262,128,258,070.0138,497,930.4640,484,325.87
ShenzhenTextileImport&ExportCo.,Ltd.SubsidiaryOperatingimportandexportbusiness5,000,000.000.000.000.00-150,452.3712,833,113.61
Shengtou(HK)Co.,Ltd.SubsidiarySalesofpolarizerHKD10,0006,009,898.075,984,077.830.00-155,168.20118,818.86
ShenzhenShenfangSungangRealEstateManagementCo.,Ltd.SubsidiaryPropertymanagement1,000,00010,248,835.388,274,062.494,297,226.092,387,107.592,222,849.16

Subsidiariesobtainedordisposedinthereportingperiod

√Applicable□Notapplicable

CompanynameMeansofacquisitionanddisposalofsubsidiariesduringthereportingperiodImpactonoverallproduction,operationandperformance
ShenzhenTextileImport&ExportCo.,Ltd.WithdrawThepurposeofthiscancellationofthesubsidiaryistoimprovetheoperationalefficiencyofstate-ownedassets,andtheimpactonthecurrentprofitandlossofthecompanyis7.6999million.

Note

ThefinancialdataofSAPOPhotoelectricmentionedinthetableabovearethefinancialstatementsdataofits

parentcompanyandnon-consolidatedstatementsdata.ShenzhenTextileImport&ExportCo.,Ltd.,Shengtou(HK)

Co.,Ltd.areSAPOPhotoelectric.FordetailsofthefluctuationofsubsidiarySAPOPhotoelectric'sperformanceandthereasonsforthechange,pleasereferto"IV.Analysisofmainbusiness"inSectionIIIManagementDiscussionandAnalysis.X.StructuredvehiclecontrolledbytheCompany

□Applicable√NotapplicableXI.ProspectforfuturedevelopmentoftheCompany

1.TheDevelopmentTrendoftheIndustry

(1)IndustrycompetitionpatternPolarizerindustryisahighlyconcentratedindustry.Currently,thereareabout10majorpolarizermanufacturersworldwide,mainlyinJapan,mainlandChina,SouthKoreaandTaiwanProvinceofChina.ThemainmarketshareisoccupiedbyJapaneseandChinesemainlandmanufacturers,whiletheoverallproductioncapacityofSouthKoreaandTaiwanProvinceislow.

(2)IndustrytrendsInrecentyears,Chinesemainland'snewdisplayindustryhasalwaysmaintainedpositivegrowth,itsoverallgrowthratehasexceededtheglobalindustrialgrowthrateformanyyears,itsindustrialstructurehasbeenconstantlyimproved,anditsmarketcompetitivenesshasbeensteadilyimproved.RelyingonseveralTFT-LCDpanelproductionlines,theLCDpanelindustryinmainlandChinaranksfirstintheworldintermsofrevenueandshippingarea.ComparedwiththerapiddevelopmentofnewdisplayindustryinmainlandChina,overseasmanufacturerschoosetograduallyshrinkandwithdraw,forexample,SamsungDisplaysellsitsLCDpanelproductionlineandLGChemsellsitsLCDpolarizerbusiness.Withthewithdrawalofforeignmanufacturers,high-qualityindustrialassetsaretransferredtomainlandChina,andthefocusofthenewdisplayindustryisacceleratingtoconcentrateinmainlandChina.AccordingtothelatestresearchofOmdia,itisestimatedthatfrom2023,thecapacityareashareofChinesemainlandmanufacturerswillreachmorethan70%oftheglobaltotal.

Affectedbythis,themarketdemandforpolarizersinChinesemainlandhasincreasedrapidlyinrecentyears.AccordingtoOmdiaresearch,drivenbythedevelopmentofdisplaypanelindustry,theglobaltotaldemandareaforpolarizersisexpectedtoincreasefrom574millionsquaremetersin2020to669millionsquaremetersin2025,andthedomesticmarketdemandareaforpolarizerswillreach480millionsquaremetersby2025,accountingformorethan70%oftheglobaltotaldemand.Itisagooddevelopmentopportunityformainlandpolarizermanufacturerswithmarketadvantages,policyadvantagesandgeographicaladvantages.

2.Companydevelopmentstrategy

Relyingontheexistingbusinessfoundation,theCompanywillactivelyplanforbusinessinnovationandupgradingthroughtwopathsoftappingthepotentialofstockbusinessandincreasingbusinessinvestmentandempowerment,vigorouslyimplementthe"polarizer+"strategy,promotethecorebusinessofpolarizerstobecomebetterandstronger,andmeanwhile,choosetherightopportunitytoextendtoupstreamrawmaterials,promotethedevelopmentofpolarizerintegrationbusiness,activelyexpandotheradvancednewmaterialfields,andstrivetobuildaworld-classnewmaterialtechnologygroup.

3.Possiblerisks

(1)Macroeconomicrisk

AstheCOVID-19isstillspreadingallovertheworld,therearestillweaklinksinthepreventionandcontrolofdomesticpandemic,thefoundationofeconomicrecoveryisstillnotsolid,theconsumptionofresidentsisstillrestricted,andthedomesticdemandeconomywillcontinuetobeunderpressure.Asamemberoftheupstreammanufacturersinthemonitormarket,theCompanycan'truleouttheriskthatunpredictablemacroeconomicfluctuationsmayaffecttheCompany'sperformance.

(2)MarketriskThepolarizerindustryisanimportantpartofChina'sfuturemanufacturingdevelopment.Thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologiesarechangingquickly.However,thedomesticsubstitutionprocessofthepolarizerindustryisunderway.Withthegradualmassproductionofthe10.5generationline,thesuper-largesizemarketwillusherinnewchanges.IftheCompany'stechnologyandproductscan'trespondtotheneedsofapplicationfieldsintime,thewidepolarizerproductsandapplicationsfallshortofexpectations,orthemarketcompetitionintensifies,whichleadstothepricereductionofdisplayproductsandtheupwardtransmissionofthepricereductionpressuretothepolarizermarket,itwillhaveanadverseimpactontheCompany.

(3)RiskofrawmaterialsThereisahighbarrierinthecoreproductiontechnologyofupstreammaterialsofpolarizers,whichisbasicallymonopolizedbyforeignmanufacturers,withlowlocalizationrate.Currently,thekeyrawmaterialsformanufacturingpolarizers,suchasPVAfilmandTACfilm,arebasicallymonopolizedbyJapaneseenterprises,andtheproductionlineandproductiontechnologyofupstreamsupportingrawmaterialsareconstrainedbyJapan,whilethepricesofmajorfilmmaterialsareaffectedbythesupplier'scapacity,marketdemandandyenexchangerate,whichaffectstheunitcostoftheCompany'sproducts.

(4)Workprioritiesin2022

1.ContinuetoimprovetheprofitabilityofthemainbusinessVigorouslyimplementthefourmeasuresof"capacityscale,productdifferentiation,innovationecology,andleanmanagement".First,furtherpromotetheoversizedproductioncapacityoftheCompany'spolarizerbusinessandimprovetheoverallproductioncapacity;Second,promoteproductdifferentiation,strengthenthetechnicalresearchonOLEDpolarizers,vehiclepolarizersandotherproducts,andcontinuouslyoptimizetheproductstructure;Third,promotetheecologicalinnovationandbuildastandardizedandefficientmarket-orientedR&Dmanagementsystem;Fourth,promoteleanmanagement,improveproductqualityandproductionefficiency,andadoptdiversifiedmeasurestoreducecostsandincreaseefficiency.

2.Promotetheramp-upmassproductionprocessofLine7projectEnsurethemaximumcontinuousproductionofLine7project,makeeveryefforttoshortentherampuptimeoftheproductionline,andpromotetheproductionwithfullactivationofproductionline.First,strengthenmarketexpansionandobtainordersforlarge-sizeproducts;Second,continuouslyimprovespeedandyield;Third,ensurethesupplyofrawmaterials.

3.EnsurethesteadygrowthofpropertybusinessandprovideeffectivesupportforthedevelopmentoftheCompany

Propertymanagemententerprisesshallcloselyfollowthechangesofthesurroundingbusinesstypes,operatearoundtherentalrateandcapitalrecoveryrate,overcometheproblemsofoldproperty,poorconditionsandbackwardfacilities,continuetotappotentialandincreaseefficiency,improveservicelevelandenhanceoperating

efficiency.

4.Carryoutrefinedmanagementinanall-roundway,andcreatearesource-efficiententerpriseDefinethemanagementgoaloftappingpotentialandincreasingefficiency,andfullyimplementrefinedmanagement.Forproduction,quality,inventory,salesandotheraspects,refinemanagementunits,improvemanagementmethods,achieverefinement,quantificationandstandardizationofmanagement,steadilyenhancetheCompany'smarketcompetitiveness,andcreatearesource-efficiententerprisewith"highefficiency,lowconsumptionandfinemanagement".

5.Furtherdeepenthemarket-orientedtalentmanagementmechanism

Reorganizetheechelonofreservetalentsforkeypositions,improvethemanagementmechanismofselection,trainingandassessmentofreservetalents,introducetalentsthroughmultiplechannels,traininmultipleways,conductmulti-directionalassessment,innovatethetalentmanagementmechanism,buildaplatformfortalentselectionandemployment,andprovidesoundhumanresourcessupportforthesustainabledevelopmentoftheGroup.

6.Wellensureepidemicpreventionandcontrolandworksafety,andmaintaintheharmonyandstabilityoftheenterprise

First,enhanceemployees'awarenessofhealthprotection,insistonfullyensuringepidemicpreventionanddynamicdatainkeyplaces,andwellensurenormalizedpreventionandcontrolofCOVID-19toensureneglectingneitherepidemicpreventionnorproduction.Second,strengthentheboundarylineawareness,firmlyestablishtheconceptofsafedevelopment,solidlycarryoutsafetymanagement,speedupthereformandinnovationofsafetysupervision,implementthesafetyresponsibilitysystemtotheletter,deepentheinvestigationandmanagementofhiddendangers,continuouslyimprovetheCompany'sworksafetymanagementlevel,andbuildastrongsafetymanagementfoundation.

7.StrengthenpartybuildingandinnovateenterprisecultureGuidedbyXiJinping'sthoughtofsocialismwithChinesecharacteristicsinthenewera,fullyimplementthespiritoftheSixthPlenarySessionoftheNineteenthCPCCentralCommitteeandthe20thCPCNationalCongress,continuetocarryoutin-depthstudyofpartyhistory,adheretotheguidanceofhigh-qualitypartybuildingtoguaranteehigh-qualitydevelopmentunswervingly,andfurtherpushforwardthe"six-degreepartybuilding"workinadown-to-earthmannertoprotecttheCompany'ssustainedandhealthydevelopment.XII.Particularsaboutresearches,visitsandinterviewsreceivedinthisreportingperiod

√Applicable□Notapplicable

ReceptiontimeReceptionplaceThewayofreceptionObjecttypeofreceptionReceptionpersonThemaincontentofthediscussionandtheinformationprovidedIndexofthebasicsituationofthesurvey
March18,2021MeetingroomonthesixthflooroftheFieldresearchOrganizationGreatWallsecuritiesThemainreasonsforthequarter-on-quaFordetails,pleaserefertothe"000045ShenzhenTextileA
CompanyrterincreaseintheCompany'sgrossprofitmargininthefirstthreequartersandthepriceofpolarizers,thereleaseofproductioncapacityofLine7,etc.ResearchActivityInformation20210319"(No.2021-01)bythecompanyhttp://www.cninfo.com.cn.
March25,2021MeetingroomonthesixthflooroftheCompanyOtherOtherThemajorityofinvestorsTheCompany'sprovisionforinventorydepreciation,theCompany'spolarizerbusinessgrossprofitmargin,theCompany'soperatingconditionsinthefirstquarter,themainreasonsfortheincreaseinthecostofpolarizermaterials,andtheimpactoftheepidemicontheCompany'sperformanceduetothereductionofrentaffectedbyepidemic.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210325"(No.2021-02)bythecompanyhttp://www.cninfo.com.cn.
Aptil2,2021MeetingroomonthesixthflooroftheFieldresearchOrganizationGreatWallsecuritiesAssetimpairmentinformationinFordetails,pleaserefertothe"000045ShenzhenTextileA
Company2020and2021,reasonsforlowergrossprofitmarginsthanothercompanies,andtheprogressofLine7production,etc.ResearchActivityInformation20210406"(No.2021-03)bythecompanyhttp://www.cninfo.com.cn.
April8,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationFuhuaSecurities,SinolinkSecuritiesTheCompany'sproductioncapacity,theproductionprogressofLine7,themainproductsproducedbyLine7,theCompany'sadvantagesinpolarizerproduction,andtheoverallsupplyanddemandofthepolarizerindustry.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210409"(No.2021-04)bythecompanyhttp://www.cninfo.com.cn.
July15,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationGreatWallsecuritiesThefuturedevelopmenttrendandpricetrendofthepolarizerindustry,whethertherewillbeexcessproductioncapacityinthepolarizerindustry,theCompany'sFordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210716"(No.2021-05)bythecompanyhttp://www.cninfo.com.cn.
measurestoreducecosts,thepriceofupstreamrawmaterials,theprogressofLine7,theprogressoftheCompany'semployeestockownershipplan,etc.
September1,2021MeetingroomonthesixthflooroftheCompanyByphoneOrganizationGreatWallsecurities,ChinaMerchantsFund,ChangshengFund,PenghuaFund,ShenwanFund,ChinaIntemationalFund,ChinaEverwinAssetandDachengFund.TheCompany'soperationinthefirsthalfoftheyear,theimpactofpanelpricesonthepriceofpolarizers,whetherpolarizaerswillleadtoexcessproductioncapacity,thecurrentproductstructure,andthecustomersofLine7products.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210902"(No.2021-06)bythecompanyhttp://www.cninfo.com.cn.
September7,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationCedarcapital,RongweiJiyeAssetManagementTheCompany'spositioninganddevelopmentdirectioninthenextfewyears,theimpactofthedeclineinFordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210908"(No.2021-07)bythecompanyhttp://www.cninfo.c
panelpricesonthetrendofpolarizerprices,thereasonsforthelowergrossprofitmargincomparedtoothermanufacturers,theCompany'sproductstructure,etcom.cn.
September17,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationFangzhengSecurities,XindaAoyinFundThesituationofLine7anditsmaincustomers,suppliersofupstreamrawmaterialsforpolarizers,reasonsfortheCompany'slowgrossprofitmargin,andtheCompany'splantochangeitsname.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210922"(No.2021-08)bythecompanyhttp://www.cninfo.com.cn.
September23,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationChuangjinHexinFundThereasonswhytheCompany'sperformancehasincreasedsignificantlycomparedwithpreviousyears,thereasonswhytheCompany'sgrossprofitmarginislowerthanthatofFordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20210926"(No.2021-09)bythecompanyhttp://www.cninfo.com.cn.
comparablemanufacturers,themainfactorsthataffecttherelativehighpriceofpolarizers.
October27,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationGreatWallsecurities,YinhuaFund,XindaAoyinFundTheCompany'smeasurestodealwiththedownwardrevisionofthepanelmarket,theCompany'smaincustomers,theCompany'sproductstructure,themainproductsofLine7,theprogressofLine7,etc.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation202101029"(No.2021-10)bythecompanyhttp://www.cninfo.com.cn.
November2,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationGreatWallsecurities,YiminFund,ZheshangSecurities,ChinaEverwinAsset,SinolinkSecurities,ShenwanAssetsManagementOperatingconditionsinthethirdquarterof2021,theimpactofthepanelpricerevisionontheCompany'spolarizerprice,theramp-upprogressandyieldofLine7,andtheCompany'sdevelopmentplaninthefieldofFordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211103"(No.2021-11)bythecompanyhttp://www.cninfo.com.cn.
polarizers.
November4,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationCedarcapitalTheCompany'sfutureplanforthedevelopmentofthepolarizerbusiness,thespecificproductsoftheCompany'spolarizersforOLEDTV,theresearchanddevelopmentprogressofvehicleproducts,andtheCompany'scostreductionmeasures.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211104"(No.2021-12)bythecompanyhttp://www.cninfo.com.cn.
November23,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationRunyingda,ZhengruiHuadaoSuppliersofupstreamrawmaterials,measurestakenbytheCompanytoreducecosts,compositionofB-endcustomersandC-endcustomersofdownstreamproducts,etc.Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211125"(No.2021-14)bythecompanyhttp://www.cninfo.com.cn.
November24,2021MeetingroomonthesixthflooroftheCompanyFieldresearchOrganizationGuotaiJunan,LingzhanCapitalThemainreasonsfortheimprovementoftheCompany'soperatingperformance,Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20211125"(No.2021-15)bythe
theCompany'smaincustomersandproductstructure,themainmatchingpanelproductionlinesofLine7,therelationshipbetweenpanelpricesandpolarizerprices,etc.companyhttp://www.cninfo.com.cn.

IV.CorporateGovernanceI.GeneralsituationDuringthereportingperiod,theCompanyoperatedinstrictaccordancewiththerequirementsofrelevantlaws,regulationsandnormativedocuments,suchasSecuritiesLaw,CompanyLaw,GovernanceGuidelinesforListedCompanies,GuidelinesforSelf-disciplineSupervisionofListedCompaniesinShenzhenStockExchangeNo.1-StandardOperationofListedCompaniesonMainBoard,andstrengthenedriskmanagementandcontroltoensurethehealthyandstabledevelopmentoftheCompany.Atpresent,theCompanyiswithbasicallysoundgovernancesystems,standardizedoperation,andrefinedcorporategovernancestructure,whichmeetstherequirementsofthenormativedocumentsonthegovernanceoflistedcompaniesissuedbyChinaSecuritiesRegulatoryCommission.In2021,companyheldatotalof4generalmeetings,convenedgeneralmeetings,standardizedvotingprocedurestosafeguardtheeffectivenessandlegalityinstrictaccordancewiththeregulationsandrequirementsofCorporationLaw,ArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Companiesactivelyprotectedthevotingrightsofminorityinvestors,andgeneralmeetingswereconvenedintheformoflivenetworktoadequatelyassuresmallinvestorsoftheirrightstoexercise.In2021,theboardofdirectorsheld11meetings,andtheconveningandvotingprocedureswereallconductedinstrictaccordancewiththeArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Allthedirectorsperformeddirectors'duties,exercisedirectors’rights,attendedrelatedmeetingsandactivelyparticipatedinthetrainingandbecamefamiliarwithrelevantlawsandregulationswithserious,diligentandhonestattitudes.IndependentdirectorsindependentlyperformedtheirdutiesinstrictaccordancewithArticlesofCorporation,Theindependentdirectorsystemandotherrelevantlawsandregulations,expressedfullytheirindependentopinionsoncorporateoperation,decision-making,andimportantmatters,etc.Strategy,audit,remuneration,evaluation,nominationcommitteeswereestablishedunderboardofdirectors,allcommitteesfunctionedproperly,andperformeddutiessuchasinternalaudits,compensationassessment,nominationofseniormanagementpersonnel,andprovidedscientificandprofessionaladvisoryopinionsforboardofdirectors’decision-making.

In2021,theboardofsupervisorsheld9meetings.TheboardofsupervisorsstrictlyfollowedtherequirementsofArticlesofCorporationandRulesofprocedureoftheboardofsupervisorsandotherrelevantlawsandregulations,supervisedthelegalcomplianceofthedutiesperformedbycompany'sfinancialpersonnelanddirectors,managersandotherseniormanagementpersonnelintheaimofmaintainingthelegitimaterightsandinterestsofthecompanyanditsshareholders.Allthesupervisorsfulfilledtheirobligations,exercisedtheirrightsaccordingtothelaws.Theconveningandvotingproceduresoftheboardofsupervisorswerelegal,andtheresolutionswerelegalandvalid.Theestablishmentandimplementationofboardofsupervisorsplayedanactiveroleinimprovingcorporategovernancestructureandregulatingcorporateoperations.Moreover,theCompanycarriedoutthespecialworkBlueSkyActionaccordingtoNotificationonImplementingSpecialWorkwhereInvestorsProtectBlueSkyActionpublishedbyShenzhenSecuritiesBureautoenhancethequalityofinformationdisclosureasthekeypoint,tocontinuouslyperfectthecommunicationmechanismandtopromotethenormativedevelopmentoftheCompany.variousplatformsweremadefulluseof,suchastelephone,e-mail,website,especiallytheinteractiveplatformofinvestorsinShenzhenStockExchange,solvedquestionsbroughtbyinvestors,andcommunicatedwithmediumandsmallinvestorsinteractively,andensurealltheinvestorsobtainedequalopportunitiesforinformalaccess.Meanwhile,intheaimofimprovingthetransparencyoflistedcompanies,companyacceptedinvestors’on-siteinvestigationtohavecomprehensive

understandingsofthecompany'sbusinesssituationthroughface-to-facecommunicationwithmanagement,alsourgedthecompanyestablishedaresponsibilitytoreturnoninvestors,improvedandenhancedthecorporategovernancestandards.Meanwhile,theCompanycontinuedtoperfectthevotingmechanismforminorityinvestors.In2021,theminorityinvestors’votingwascountedseparatelyateachofthe4shareholder’smeetings,andwhoseresultwasdisclosedatthedecisionannouncementattheshareholder’smeeting,whichfullyguaranteedtheexecutionofpoweroftheminorityinvestorsIn2021,accordingtotheStateCouncil'sOpinionsonFurtherImprovingtheQualityofListedCompanies(GF[2020]No.14)andtheShenzhenSecuritiesRegulatoryBureau'sNoticeonPromotingListedCompaniesinJurisdictiontoImplementMainResponsibilities,ImproveGovernanceLevelandAchieveHighQualityDevelopment(SZJGSZi[2020]No.128),theCompanyactivelyformulatedself-inspectionworkplans,organizeddirectors,supervisorsandseniormanagementpersonneloftheCompanyandimportantsubsidiariestocarryoutspecialstudy,setupspecialworkinggroupstoimplementself-inspection,foundoutpotentialrisksandoutstandingproblemsthatrestrictthequalityimprovementoftheCompany,andformulatedfeasiblefollow-uprectificationplans.TheCompanyhasreportedtheSelf-inspectionReportandRectificationPlanonImplementingMainResponsibility,ImprovingGovernanceLevelandAchievingHigh-qualityDevelopmenttoShenzhenSecuritiesRegulatoryBureau,andwillpushforwardthequalityimprovementoflistedcompaniesaccordingtotheaboverectificationplan.

Doesthereexistanydifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC

□Yes√NoThereexistnodifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC.II.IndependenceandCompletenessinbusiness,personnel,assets,organizationandfinanceThecodeofconductofthecontrollingshareholdersofthecompanydidnotgobeyondthegeneralmeetingsdirectlyorindirectlytointerferewiththedecision-makingandbusinessactivities,thecompanyhadindependentandcompletebusinessandautonomousoperationcapacity,achieved“fivepointseparation”inrespectofpersonnel,financial,asset,agencies,business.III.Competitionsituationsoftheindustry

□Applicable√NotApplicableIV.AnnualGeneralMeetingandExtraordinaryShareholders’MeetingsintheReportingPeriod

1.AnnualGeneralMeeting

SessionsTypeofmeetingInvestorparticipationratioMeetingDateDisclosuredateDisclosureindex
TheFirstprovisionalshareholders’Provisionalshareholders’Generalmeeting49.30%February2,2021February3,2021http://www.cninfo.com.cn)Announcement
Generalmeetingof2021No.:2021-11
TheSecondprovisionalshareholders’Generalmeetingof2021Provisionalshareholders’Generalmeeting49.27%February10,2021February10,2021http://www.cninfo.com.cn)AnnouncementNo.:2021-14
2020Shareholders’generalmeetingAnnualShareholders’GeneralMeeting49.31%April7,2021April8,2021http://www.cninfo.com.cn)AnnouncementNo.:2021-31
TheThirdprovisionalshareholders’Generalmeetingof2021Provisionalshareholders’Generalmeeting49.46%June9,2021June10,2021http://www.cninfo.com.cn)AnnouncementNo.:2021-40

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√Notapplicable

V.InformationaboutDirectors,SupervisorsandSeniorExecutives

(1)Basicsituation

NamePositionsOfficestatusSexAgeStartingdateoftenureExpirydateoftenureSharesheldattheyear-begin(share)StockoptionsNumberofrestrictedsharesgranted(shares)Thenumberofsharesheldinthecurrentperiod(shares)Numberofsharesreducedinthecurrentperiod(shares)Otherchanges(shares)Numberofsharesheldattheendoftheperiod(shares)Reasonsforincreaseordecreaseofshares
ZhangJianBoardchairmann,SecretaryyofthepartycommitteeInofficeFemale42February10,2021February9,20240000000
ZhuMeizhuDeputySecretaryofthePartycommittee,Director,GeneralMangInofficeMale57July9,2017February9,2024133,5000110,250040,500093,000
er
NingMaozaiDirector,DeputySecretaryofthePartycommitteeInofficeMale46December14,2017February9,202436,600036,600036,60000
YinKefeiDirectorInofficeMale47February10,2021February9,20240000000
HeFeiDirector,CFOInofficeMale44January16,2020February9,20240000000
SunMinghuiDirectorInofficeMale40February10,2021February9,20240000000
HeZuowenIndependentDirectorInofficeMale59July19,2017February9,20240000000
CaiYuanqingIndependentDirectorInofficeMale52July19,2017February9,20240000000
WangKaiIndependentDirectorInofficeMale38January16,2020February9,20240000000
MaYiChairmanofthesuperInofficeMale55January16,2020February9,20240000000
visorycommittee,SecretaryoftheCommissionforDisciplineInspection
YuanShuwenShareholders'SupervisorInofficeMale41January16,2020February9,20240000000
ZhanLumeiEmployeesupervisorInofficeFemale52February10,2021February9,202416,800016,800016,80000
LeKunjiuSenioradviserInofficeMale58September24,2021February9,202436,600036,600036,60000
LiuHongleiDeputyGMAppointmentMale57July19,2017February9,202439,600038,850036,60003,000
GuanFeiDeputyGMInofficeMale36September22,2021February9,20240000000
JiangPengSecretarytotheboardofInofficeFemale51January16,2015February9,202430,000030,000030,00000
directors
ZhuJunBoardchairmanDimissionMale58January16,2015February10,202141,100041,100041,10000
HuangYuDirectorDimissionMale47July19,2017February10,20210000000
WangChuanDirectorDimissionMale49September1,2018February10,20210000000
ZhangXiaodongEmployeesupervisorDimissionMale46August9,2013February10,20215,300000000
Total------------339,5000310,2000238,20096,000--

Duringthereportingperiod,whetherthereisdismissalofdirectorsandsupervisorsanddecruitmentofseniormanagers

□Yes√NoChangesofdirectors,supervisorsandseniorexecutives

√Applicable□Notapplicable

NamePositionsTypesDateReason
ZhuJunBoardchairmanLeftfortermexpirationFebruary10,2021Thetermofofficeexpires
HuangYuDirectorLeftfortermexpirationFebruary10,2021Thetermofofficeexpires
WangChuanDirectorLeftfortermexpirationFebruary10,2021Thetermofofficeexpires
ZhangXiaodongEmployeesupervisorLeftfortermexpirationFebruary10,2021Thetermofofficeexpires
ZhanLumeiEmployeesupervisorElectedFebruary10,2021TheformeremployeesupervisorLeftfortermexpiration
LeKunjiuSenioradviserAppointmentSeptember22,2021Thetermofthedeputygeneralmanagerhasexpired,andheishiredasaseniorconsultanttocontinue

(2)PostsholdingProfessionalbackground,workexperienceandmaindutiesintheCompanyofexistingdirectors,supervisorsandseniormanagement

1.Director

ZhangJian,female,borninJune1979,master'sdegree,memberoftheCommunistPartyofChina.ShehasservedasanofficeclerkofthemarketingdepartmentofShenzhenPostalSavingsandForeignExchangeReservesBureau,deputydirectoroftheFinanceDepartmentofShenzhenDevelopmentandReformCommission(formerlyShenzhenDevelopmentandReformBureau),SeniorStaffMember,PrincipalStaffMemberandDeputyDirectoroftheIndustrialCoordinationDepartmentofShenzhenDevelopmentandReformCommission,DeputyDirectoroftheEconomicSystemReformDepartmentofShenzhenDevelopmentandReformCommission,andPartyMemberandDeputyGeneralManagerofShenzhenKunpengEquityInvestmentManagementCo.,Ltd.SheiscurrentlyPartySecretaryandChairmanoftheCompany,andconcurrentlyservesasPartyCommitteeMember,DeputyGeneralManagerandSecretaryoftheBoardofDirectorsofShenzhenSEGGroupCo.,Ltd.,DirectorofShenzhenSEGCo.,Ltd.,ViceChairmanofShenzhenHuakongSEGCo.,Ltd.,ChairmanofShenzhenDamingElectronicsCo.,Ltd.,ChairmanofShenzhenSEGHigh-techInvestmentCo.,Ltd.andChairmanofSEG(HongKong)Co.,Ltd.,;HeiscurrentlythePartysecretaryandChairmanoftheCompany.

ZhuMeizhu,Male,BorninNovember1964,Masterdegree,Seniorengineer,onceservedsuccessivelyaschiefDeputygeneralManagerofEnterpriseManagementDeptoftheCompany,DirectorofR&DCenter,AssistantGeneralManagerandDeputyGeneralManager,HeservesasdirectorandGeneralManageroftheCompany,andBoardChairmanofSAPOPhotoelectricCo.,Ltd.

NingMaozai,male,borninJuly1975,bachelordegree,senioradministrationengineer,ChineseCommunistPartymember;hehasservedsuccessivelyastheofficeclerkofShenzhenGuomaoAutomobileIndustryCo.,Ltd,theclerk,principalstaffmember,associatedirectoranddirectorofparty-massofficeofShenzhenPropertyDevelopment(Group)Corp.andholdaconcurrentpostofdeputyhumanresourceDeputymanagerandmanager;AtpresentheholdsthepositionofcompanydirectorandthepartysecretaryoftheCompany.

YinKefei,male,borninJuly1974,masterdegree,engineer,memberoftheCommunistPartyofChina.HehasservedasTechnicianandDeputyDirectorofCustomerServiceCenterofPipelineGasBranchofShenzhenGasGroupCo.,Ltd.;DeputyDirector,DirectorofCivilServiceDepartmentandDirectorofGeneralOfficeofPipelineGasCustomerServiceBranchofShenzhenGasGroupCo.,Ltd.;DeputyGeneralManagerofShenzhenGasGroupCo.,Ltd.GanzhouShenranNaturalGasCo.,Ltd.;MemberofthePartyGroupandDeputyDirectoroftheState-ownedAssetsSupervisionandAdministrationCommissionofDongguanCity,GuangdongProvince,andconcurrentlytheViceChairmanofDongguanWaterInvestmentGroupCo.,Ltd.;DeputySecretary-GeneralofDongguanMunicipalGovernmentofGuangdongProvince,PartySecretaryandDirectorofDongguanMunicipalGovernmentLiaisonOfficeinBeijing,andconcurrentlyChairmanoftheBoardofSupervisorsofDongguanBiotechnologyIndustryDevelopmentCo.,Ltd.;DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofDongguanFinancialHoldingGroupCo.,Ltd.,concurrentlyDirectorofDongguanBankandDirectorofDongguanAssetManagementCompany;HeiscurrentlytheDeputyGeneralManagerofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.

HeFei,male,borninFebruary1978,master'sdegree,memberofCommunistPartyofChina,Chinesecertifiedpublicaccountant,accountant.HesuccessivelyservedasaccountantofthePlanningandFinanceDepartmentofShenzhenGasGroupCo.,Ltd.,accountantoftheFinanceDepartmentofShenzhenGasInvestmentCo.,Ltd.,

whichisaffiliatedtoShenzhenGasGroupCo.,Ltd.,andmanageroftheFinanceDepartmentofHubeiShengjieCleanEnergyCo.,Ltd.,whichisaffiliatedtoShenzhenGasInvestmentCo.,Ltd.;DirectorofGeneralFinanceDepartmentofShenzhenConvention&ExhibitionCenterManagementCo.,Ltd.;ViceDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisthecompanydirectorandchieffinancialofficerofthecompanyandSupervisorofSAPOPhotoelectricCo.,Ltd.

SunMinghui,male,borninSeptember1981,masterdegree,accountant,memberoftheCommunistPartyofChina.HehasservedasStaffMemberoftheFinanceDepartmentofShenzhenEnergyFinanceCo.,Ltd.andtheFinancialManagementDepartmentofShenzhenEnergyGroupCo.,Ltd.,FinanceManagementDirectoroftheFinancialBudgetDepartmentofShenzhenInvestmentHoldingsCo.,Ltd.,SeniorDirectoroftheFinanceDepartmentandtheBoardOffice,andDeputyDirectoroftheFinanceDepartment(SettlementCenter).HeiscurrentlytheDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.

HeZuowen,male,borninOctober1962,MBA,associateprofessorinaccountancy,chartedcertifiedaccountantandcertifiedtaxagentinsecuritiesandfuturesindustry.AtpresentheactsasapartnerofDaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)andsecretaryofPartyGeneralBranchofShenzhenBranch,meanwhileheholdsthepositionofchairmanofShenzhenTianyeCertifiedTaxAgentsLimitedCorporation,consultancyexpertofInternalControlStandardCommitteeoftheMinistryofTreasury,judgeofGuangdongSeniorAccountantEvaluationCommittee,memberofCPCShenzhenSocialOrganizationDisciplinaryExaminationCommittee,deputysecretary&secretaryofDisciplineInspectionCommissionofCPCShenzhenCPAIndustryBoard,directorofShenzhenCertifiedTaxAgentsAssociationandindependentdirectorofShenzhenJPTOPTO-ELECTRONICSCo.,Ltd.,IndependentdirectorofShenzhenYiruiBiologyCo.,Ltd.,theCompany'sindependentdirectors,IndependentdirectorofShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.,andIndependentDirectoroftheCompany.

CaiYuanqing,bornin1969,DoctorofLawsofHiroshimaUniversity,professorofLawSchoolofShenzhenUniversity,directorofCompanyLawResearchCenterandGSI(GraduateStudentInstructor);Meanwhile,heactsasanarbitratorofShenzhenArbitrationCommission,independentdirectorofShenzhenRongdaPhotosensitiveScience&TechnologyCo.,Ltd.,IndependentdirectorofShenzhenOufeiTechnologyCo.,Ltd.,IndependentdirectorofOgilvyMedicalSuppliesCo.,ltd.andindependentdirectorsoftheCompany.

WangKai,male,bornin1983,Ph.D.ofHuazhongUniversityofScienceandTechnology,MemberoftheCommunistPartyofChina,associateprofessorandresearcherofSouthernUniversityofScienceandTechnologyDepartmentofElectronicandElectricalEngineering,andOutstandingYoungManofGuangdongProvince.HehasservedasamemberoftheTechnicalCommitteeofBeijingBranchofSocietyforInformationDisplay(SID),amemberoftheNationalStandardizationTechnicalCommitteeofFlatPanelDisplayDevices,DeputyDirectoroftheKeyLaboratoryofEnergyConversionandStorageTechnologyoftheMinistryofEducation,andDeputyDirectoroftheKeyLaboratoryofQuantumDotAdvancedDisplayandLightinginGuangdongUniversities,andindependentdirectoroftheCompany.

2.SupervisorMaYi,male,borninAugust1966,bachelor'sdegree,memberofCommunistPartyofChina,assistanteconomist.HehassuccessivelyservedasacadreoftheautomobilemanufacturinganddistributionplantofHainanautomobiletransportationcorporation,directoroftheBusinessDepartment,assistanttothegeneralmanagerandmanageroftheTransportationDepartmentofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,operationdirectorofCoscoLogisticsGuangzhouAntaidaLogisticsCo.,Ltd.,generalmanagerofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,directorofPlanningandDevelopmentDepartment,directorassistant,chiefofFutianstation,deputysecretaryofthePartyCommittee,directorandgeneralmanagerofShenzhenhighwaypassengerandfreighttransportationservicecenter.Heisthe

currentchairmanoftheboardofsupervisorsandsecretaryofDisciplineInspectionCommitteeoftheCompany..

YuanShuwen,male,borninMay1980,master'sdegree.HehassuccessivelyservedaschiefofShigumanagementstationofHengshancountyruralmanagementbureau,financialdirectorofShenzhenFengchengIronWireProductsCo.,Ltd.,projectmanagerofShenzhenbranchofBDOAccountingFirmCo.,Ltd.,generalledgeraccountantofShenzhenZhenye(Group)Co.,Ltd.,directorofFinancialBudgetDepartmentandseniordirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisvicedirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.andsupervisoroftheCompany

ZhanLumei,female,borninJune1969,collegedegree,SeniorLaborRelationsCoordinator,SeniorCareerInstructor,memberoftheCommunistPartyofChina.ShehasservedastheAdministrativePersonnelDirectorofShenzhenHualangGarmentCo.,Ltd.,DirectorandManageroftheHumanResourcesDepartmentoftheCompany.Currently,sheisthevicechairmanoftheFederationofTradeUnions,DirectoroftheParty-massWorkDepartment,andChairmanoftheTradeUnionandtheEmployeeSupervisoroftheCompany.

3.SeniorExecutives

LeKunjiu,male,borninMay1963,bachelordegreeeconomistprofessionaltitleandCPCmember;hehasservedsuccessivelyastheloanofficerofthefinancedepartmentofZhejiangNingboInternationalTrustandInvestmentCorporation,deputydirectoranddirectorofthefinancedepartmentofCITICGroupCorporation,NingboBranch,manageroftheresearchdepartmentofHainanFudaoAssetManagementCo.,Ltd,assistantmanagerofShenzhenLeaguerVentureCapitalCo.,Ltd,vicepresident&chieffinancialofficerofShenzhenLeaguerDigitalTelevisionCo.,Ltd,chairman&generalmanagerofShenzhenOriscapeElectronicCo.,Ltd,vicepresidentofShenzhenInternationalTechnologyTransferCenter,TsinghuaUniversity,associatedirectoroftheindustrialfundspreparatoryofficeofShenzhenInvestmentHoldingsCo.,LtdandDeputygeneralmanagerofShentouEducation;AtpresentheactsasDeputyGeneralManageroftheCompany,andDirectorofSAPOPhotoelectricCo.,Ltd.HeisthecurrentaseniorconsultantoftheCompany..

LiuHonglei,male,borninMay1964,bachelordegreeandCPCmember,Seniorengineer,HehasservedTechnician,Workdirector,DeputydirectorofofficeofFirstfilmfactoryofMinistryofChemicalEngineering,DirectorofpersonnelEducationDeptofEducationDepartmentofChinaLekaiFilmGroup,hehasservedasthedeputygeneralmanagerandgeneralmanagerofSAPOPhotoelectricCo.,LtdfromJune2012toMay2013andtheheadoftheparty-massworkdepartmentandthemanagerofthebusinessmanagementdepartmentofShenzhenTextile(Holdings)Co.,Ltd;Atpresentheholdsthepositionofdeputygeneralmanagerofthecompany.HeisalsothesecretaryanddirectorofthepartybranchofShenzhenSAPOPhotoelectricTechnologyCo.,Ltd.

GuanFei,male,borninDecember1985,in-servicepostgraduatedegree,memberoftheCommunistPartyofChina,intermediateeconomist.HehasservedastheAccountManagerofAgriculturalBankofChinaShenzhenBranch,DeputyDirectorofSichuanSupervisionBureauofChinaBankingandInsuranceRegulatoryCommission,SeniorInvestmentManagerofSichuanIndustrialFundGroupandHeadofStrategicInvestmentDepartment(presiding),FirstGeneralManagerofSichuanInnovationandDevelopmentInvestmentManagementCo.,Ltd.,andDeputyGeneralManagerofShenzhenInfrastructureInvestmentFundManagementCo.,Ltd.HeiscurrentlytheDeputyGeneralManageroftheCompany.

JiangPeng,Female,borninOctober1970,BachelorDegree,memberofcommunistparty,ShehasservedasaClerkandDeputySectionChiefoftheofficeofShandongAquaticEnterpriseGroupCorporation,SectionChiefoftheOfficeoftheBoardofDirectorsofShandongZhongluOceanFisheryCo.,Ltd.,DeputyDirectorandSecuritiesAffairsRepresentative.servedasofficeroftheSecretaryOfficeofShandongFisheryGroupCo.,Ltd.,DeputyDirectoroftheSecretaryofficeandSecuritiesaffairsRepresentativeofShandongZhongluOceanic

FisheriesCo.,Ltd.,SecuritiesRepresentativeofHuafuHoldingCo.,Ltd.,SecuritiesaffairsrepresentativeandOfficeroftheSecretariatoftheBoardoftheCompany,nowservesasthesecretaryoftheBoardoftheCompanyOfficetakinginshareholdercompanies

√Applicable□Notapplicable

NamesofthepersonsinofficeNamesoftheshareholdersTitlesengagedintheshareholdersSharingdateofofficetermExpirydateofofficetermDoeshe/shereceiveremunerationorallowancefromtheshareholder
YinKefeiShenzhenInvestmentHoldingsCo.,Ltd.DeputyGMJanuary11,2021Yes
SunMinghuiShenzhenInvestmentHoldingsCo.,Ltd.DirectorofFinancialDept(Clearingcentre)November11,2020Yes
YuanShuwenShenzhenInvestmentHoldingsCo.,Ltd.DeputyDirectorofdisciplineInspection&SupervisionSeptember18,2017Yes

Officestakeninotherorganizations

√Applicable□Notapplicable

NameofthepersonsinofficeNameofotherorganizationsTitlesengagedintheotherorganizationsStartingdateofofficetermExpirydateofofficetermDoeshe/shereceiveremunerationorallowancefromotherorganization
YinKefeiShenzhenConventionandExhibitionCenterManagementCo.,LtdDirectorApril23,2021No
YinKefeiShenzhenEnvironmentalTechnologyGroupCo.,Ltd.DirectorApril23,2021No
YinkefeiShenzhenWuzhouGuestHouseDirectorJune11,2021No
YinKefeiShenzhenNanyou(Group)Co.,Ltd.Director,VicepresidentAugust16,2021No
SunMinghuiChinaNanshanDevelopment(Group)Co.,Ltd.SupervisorOctober17,2017No
SunMinghuiShenzhenHighwayPassenger&CargoSupervisorJune16,2017No
TransportationServiceCenterCo.,Ltd.
SunMinghuiCASTDSupervisorJune27,2017No
SunMinghuiULTRARICHINTERNATIONALLIMITEDDirectorNovember11,2020No
SunMinghuiShenzhenSpecialEconomicZoneRealEstateDirectorNovember11,2020No
SunMinghuiSouthernAssetManagementCo.,Ltd.SupervisorNovember11,2020April28,2021No
SunMinghuiHubeiShentoukongInvestmentDevelopmentCo.,LtdDirectorNovember11,2020No
SunMinghuiShenzhenShengangTechnologyInnovationCooperationZoneDevelopmentCo.,Ltd.DirectorOctober18,2021No
YuanShuwenShenzhenTextile(Holdings)Co.,Ltd.SupervisorSeptember27,2019No
YuanShuwenShenzhenInternationalTenderingCo.,Ltd.SupervisorOctober22,2017June10,2020No

Punishmentstothecurrentandleavingboarddirectors,supervisorsandseniormanagersduringthereportperiodbysecuritiesregulatorsintherecentthreeyears

□Applicable√Notapplicable

(3)Remunerationtodirectors,supervisorsandseniorexecutivesDecision-makingprocedures,basisfordeterminationandactualpaymentoftheremunerationtodirectors,supervisorsandseniorexecutivesInthereportperiod,Theremunerationofdirectorsandseniormanagementpaidbythecompanyisdeterminedby“DirectorCompensationManagementSystem”and“ExecutiveCompensationManagementandEvaluationSystem”,theremunerationofindependentdirectorsisdeterminedaspertheresolutionofshareholders’meeting,andtheremunerationofsupervisorspaidbythecompanyisdeterminedbytheirpositionheldinthecompany.Remunerationtodirectors,supervisorsandseniorexecutivesinthereportingperiod

InRMB10,000

NamePositionsSexAgeOfficestatusTotalremunerationreceivedfromtheCompanyWhethertogetpaidinthecompanyrelatedparty
ZhangJianBoardChairmanFemale42Inoffice60.15No
ZhuMeizhuDirector,GeneralManagerMale57InOffice140.29No
NingMaozaiDirector,SecretaryofthePartycommitteeMale46InOffice127.16No
YinKefeiDirectorMale47Inoffice0Yes
HeFeiDirector,CFOMale44InOffice111.15No
SunMinghuiDirectorMale40InOffice0Yes
HeZuowenIndependentDirectorMale59InOffice12No
CaiYuanqingIndependentDirectorMale52InOffice12No
WangKaiIndependentDirectorMale38Inoffice12No
MaYiChairmanofthesupervisorycommittee,SecretaryoftheCommissionforDisciplineInspectionMale55InOffice100.62No
YuanShuwenShareholders'SupervisorMale41InOffice0Yes
ZhanLumeiEmployeesupervisorFemale52Inoffice57.69No
LeKunjiuSenioradviserMale58InOffice126.51No
LiuHongleiDeputyGMMale57InOffice169.43No
GuanFeiDeputyGMMale36InOffice19.52No
JiangPengSecretarytotheboardofdirectorsFemale51Inoffice102.81No
ZhuJunBoardchairmanMale58Dimission61.2No
ZhangXiaodongEmployeesupervisorMale46Dimission2.75Yes
HuangYuDirectorMale47Dimission0Yes
WangChuanDirectorMale49Dimission0Yes
Total--------1,115.28--

VI.Performanceofdirectors'dutiesduringthereportingperiod

(1)Informationoftheboardmeetingsduringthereportingperiod

SessionConveningdateDisclosuredateMeetingresolution
The35thmeetingoftheseventhBoardofDirectorsJanuary15,2021January16,2021http://www.cninfo.com.c(AnnouncementNo.:2021-01)
The36thmeetingoftheseventhBoardofDirectorsJanuary25,2021January26,2021http://www.cninfo.com.c(AnnouncementNo.:2021-07)
ThefirstmeetingoftheEighthBoardofDirectorsFebruary10,2021February10,2021http://www.cninfo.com.c(AnnouncementNo.:2021-151)
TheSecondmeetingoftheEighthBoardofdirectorsMarch10,2021March12,2021http://www.cninfo.com.c(AnnouncementNo.:2021-17)
TheThirdmeetingoftheEighthBoardofdirectorsApril26,2021April28,2021http://www.cninfo.com.c(AnnouncementNo.:2021-33)
TheFourthmeetingoftheEighthBoardofdirectorsMay24,2021May25,2021http://www.cninfo.com.c(AnnouncementNo.:2021-37)
TheFifthmeetingoftheEighthBoardofdirectorsJuly13,2021July14,2021http://www.cninfo.com.c(AnnouncementNo.:2021-44)
ThesixthmeetingoftheEighthBoardofdirectorsAugust26,2021August28,2021http://www.cninfo.com.c(AnnouncementNo.:2021-49)
The7thmeetingoftheEighthBoardofdirectorsSeptember22,2021September24,2021http://www.cninfo.com.c(AnnouncementNo.:2021-55)
The8thmeetingoftheEighthBoardofdirectorsOctober28,2021October30,2021http://www.cninfo.com.c(AnnouncementNo.:2021-58)
The9thmeetingoftheEighthBoardofdirectorsDecember31,2021December31,2021http://www.cninfo.com.c(AnnouncementNo.:2021-61)

(2)Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders

Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders
NameofdirectorNumberofboardmeetingsattendedduringthereportingperiodNumberofboardmeetingsattendedinpersonNumberofboardmeetingsattendedbymeansofcommunicationNumberofboardmeetingsattendedbyproxyNumberofboardmeetingsabsentfromWhethertoattendtheboardmeetinginpersontwiceinarowGeneralmeetingsofshareholdersattended
ZhangJian99000No4
ZhuMeizhu1111000No4
NingMaozai1111000No4
YinKefei99000No1
HeFei1111000No4
SunMinghui99000No1
HeZhuowen113800No4
CaiYunqing113800No4
WangKai113800No3
ZhuJun22000No0
WangChuan22000No0
HuangYu22000No0

ExplanationoffailuretoattendtheboardmeetinginpersontwiceinarowNone

(3)Directors'objectionstorelatedmattersoftheCompanyWhetherthedirectorraisesanyobjectiontotherelevantmattersoftheCompany

□Yes√NoDuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompany.

(4)Otherdescriptionsofdirectors'performanceofdutiesWhetherthedirectors'suggestionsontheCompanyhavebeenadopted

√Yes□NoThedirector'sstatementonwhethertherelevantsuggestionsoftheCompanyhavebeenadoptedornotDuringthereportingperiod,alldirectorsoftheCompanyworkeddiligentlyandconscientiouslyinstrictaccordancewiththerelevantregulationsofChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,theArticlesofAssociation,theRulesofProcedureoftheBoardofDirectorsandothersystemsoftheCompany,paidcloseattentiontotheCompany'sstandardizedoperationandbusinesssituation,putforward

relevantopinionsontheCompany'smajorgovernanceandbusinessdecisionsaccordingtotheactualsituationoftheCompany,reachedaconsensusafterfullcommunicationanddiscussion,andresolutelysupervisedandpromotedtheimplementationoftheresolutionsoftheBoardofDirectors,soastoensurescientific,timelyandefficientdecision-making,andprotectthelegitimaterightsandinterestsoftheCompanyandallshareholders.VII.SituationofspecialcommitteesundertheBoardofDirectorsduringthereportingperiod

CommitteenameMemberinformationNumberofmeetingsconvenedConveningdateMeetingcontentPutforwardimportantopinionsandsuggestionsOtherinformationofdutyperformanceDetailsofobjections(ifany)
AuditCommitteeHeZhuowen,CaiYuanqing,HeFei6January12,2021Itdeliberatedthe2020AuditWorkPlanforAnnualReport,2020MainFinancialIndicatorsExpressoftheGroup,2020InternalAuditWorkSummaryand2021InternalAuditWorkPlanand2020AuditPlanofShenzhenTextile.TheAuditCommitteeemphasizedtheneedtostrengthenthetrackingandinspectionofauditrectification,enhancethetimelinessofinternalaudit,andreducetherecurrenceofproblemsfoundinaudit,andagreedtothe2020financialstatementindicatorexpressandrelatedworkplan.
February5,2021TheaccountantofGrantThorntonreportedtotheAuditTheAuditCommitteeworkedinstrictaccordancewiththe
Committeetheprogressoftheauditofthe2020annualreportandtheproblemsconcernedintheauditprocess,andtheAuditDepartmentreportedthe2020worksummaryandthe2021internalauditworkplanoftheCompany.TheAuditCommitteeputforwardsuggestionsandrequirementsforthefollow-upauditwork.CompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandtheArticlesofAssociationandtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,andunanimouslypassedrelevantproposalsafterfullcommunicationanddiscussion.
March5,2021Itdeliberatedthe2020FinancialFinalAccountsReport,the2020ProfitDistributionPlan,theProposalonAccountingPolicyChange,theSpecialReportontheTheAuditCommitteeworkedinstrictaccordancewiththeCompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandthe
DepositandUseofRaisedFundsin2020,andtheProposalonthePermanentReplenishmentofWorkingCapitalwithSurplusRaisedFunds.ArticlesofAssociationandtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,andunanimouslypassedrelevantproposalsafterfullcommunicationanddiscussion.
April26,2021ItlistenedtotheInternalAuditWorkSummaryfortheFirstQuarterandtheInternalAuditWorkPlanfortheSecondQuarterof2021reportedbytheAuditDepartment,andputforwardrelevantrequirements.TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthefirstquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthesecondquarterof
2021.
August13,2021ItlistenedtotheSpecialInspectionReportonStandardizedOperationofListedCompaniesintheFirstHalfof2021,theSummaryofInternalAuditWorkintheSecondQuarterandtheInternalAuditWorkPlanintheThirdQuarterof2021,whichwerereportedbytheAuditDepartment,deliberated3proposalsincludingtheProposalonHiringAuditInstitutionsin2021andputforwardrelevantrequirementsfortheauditwork.TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthesecondquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthethirdquarterof2021.Inaccordancewiththerequirementsofenterpriseinternalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternalNoNo
controloffinancialreportandnon-financialreportinallmajoraspects.Itisunanimouslyagreedtopasstherelatedproposal.
October28,2021TheAuditCommitteelistenedtotheSummaryofAuditWorkintheThirdQuarterandtheInternalAuditWorkPlanintheFourthQuarterof2021reportedbytheRiskControlAuditDepartment,andputforwardrelevantrequirementsforinternalauditwork.TheAuditCommitteerecognizedtheinternalauditworkoftheRiskControlAuditDepartmentinthethirdquarterof2021,andrequestedtheRiskControlAuditDepartmenttocontinuetocarryoutworkaccordingtotherequirementsoftheannualinternalauditworkplanforthefourthquarterof2021.Inaccordancewiththerequirementsofenterprise
internalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternalcontroloffinancialreportandnon-financialreportinallmajoraspects.
RemunerationandAppraisalCommitteeHeZhuowen,WnagKai,HeFei4January8,2021Itdeliberatedmattersrelatedtorepurchaseandcancellationofsomerestrictedstocks.TheRemunerationandAppraisalCommitteebelievedthatsincetherepurchaseandcancellationofrestrictedstockswereincompliancewiththeAdministrativeMeasuresforEquityIncentivesofListedCompanies,MemorandumNo.3ofInformationDisclosureonMainNoNo
Board-EquityIncentivesandEmployeeStockOwnershipPlanandtheCompany's2017RestrictedStockIncentivePlan(Draft)andotherrelevantregulations,andtherepurchaseandcancellationoftheCompanywillnotaffecttheCompany'scontinuingoperationsorharmtheinterestsoftheCompanyandallshareholders,itisunanimouslyagreedtopasstheproposal.
March8,2021ItdeliberatedmattersrelatedtorepurchaseandcancellationofsomeTheRemunerationandAppraisalCommitteebelievedthatsincethis
restrictedstocks.repurchaseandcancellationwereincompliancewiththeAdministrativeMeasuresforEquityIncentivesofListedCompanies,GuidelinesNo.9forBusinessManagementofListedCompaniesofShenzhenStockExchange-EquityIncentivesandtheCompany's2017RestrictedStockIncentivePlanandotherrelevantregulations,anditwillnotaffecttheCompany'scontinuingoperationorharmtheinterestsoftheCompanyandallshareholders,itis
unanimouslyagreedtorepurchaseandcancelsuchrestrictedstocks.
August12,2021ItdeliberatedtheProposalonFormulatingthe2020AnnualBusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagers.TheRemunerationandAppraisalCommitteebelievedthattheformulationofthe2020BusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagersconformedtotherelevantprovisionsoftheGovernanceGuidelinesofListedCompanies,theArticlesofAssociationoftheCompanyandtheWorkingRegulationsoftheRemuneratio
nandAppraisalCommitteeoftheBoardofDirectors;anditisagreedtosubmitthe2020BusinessPerformanceAssessmentandRemunerationManagementPlanforSeniorManagerstotheBoardofDirectorsoftheCompanyfordeliberation.
October9,2021ItdeliberatedtheProposalonRemunerationAssessmentofSeniorManagersin2020.TheRemunerationandAppraisalCommitteeworkedinstrictaccordancewiththeCompanyLaw,theregulatoryrulesofChinaSecuritiesRegulatoryCommissionandtheArticlesofAssociationNoNo
andtheRulesofProcedureoftheBoardofDirectorsinadiligentanddutifulmanner,putforwardrelevantopinionsaccordingtotheactualsituationoftheCompany,andunanimouslypassedtheproposalafterfullcommunicationanddiscussion.
NominationCommitteeCaiYuanqing,HeFei,HeZhuowen,WangKai2August26,2021ItdeliberatedtheProposalonNominatingCandidatesforDeputyGeneralManageroftheCompanyandtheProposalonNominatingCandidatesforGeneralManageroftheCompany.TheNominationCommitteemembersworkedinstrictaccordancewiththeArticlesofAssociationoftheCompanyandtheRegulationsontheWorkoftheNominationCommitteeoftheBoardofDirectors,reviewedtheNoNo
qualificationsofcandidatesandunanimouslypassedrelevantproposals.
February10,2021Itdeliberatedthenominationofseniormanagers.TheNominationCommitteemembersworkedinstrictaccordancewiththeArticlesofAssociationoftheCompanyandtheRegulationsontheWorkoftheNominationCommitteeoftheBoardofDirectors,deliberatedthequalificationsofcandidatesandunanimouslypassedrelevantproposals.

VIII.TheworkingstatusoftheboardofsupervisorsTheboardofsupervisorsfindsoutwhetherthecompanyhasrisksduringthemonitoringactivitiesduringthereportingperiod

□Yes√NoTheSupervisoryCommitteehasnoobjectiontothesupervisionmattersduringthereportingperiod.

IX.Particularsaboutemployees.

(1)Numberofstaff,professionalstructureandeducationalbackground

Numberofin-servicestaffoftheparentcompany(person)56
Numberofin-servicestaffofthemainsubsidiaries(person)1,575
Thetotalnumberofthein-servicestaff(person)1,631
Thetotalnumberofstaffreceivingremunerationinthecurrentperiod(person)1,631
Retiredstaffwithchargespaidbytheparentcompanyandmainsubsidiaries(person)0
Professional
CategoryNumberofpersons(person)
Production1,158
Sales29
Technical231
Financial33
Administrative180
Total1,631
Education
CategoryNumberofpersons(person)
Holdersofmaster’sdegreeorabove41
Graduatesofregularuniversity265
Colleges157
Mid-schoolorbelow1,168
Total1,631

(2)RemunerationpoliciesIn2021,theCompanycarriedoutmanagementforemployees’compensationinstrictaccordancewiththestate’srelevantlawsandregulationsandguaranteedthefairnessandreasonabilityofthecompensation,whichofferedrelevantrewardsandincentivestotheemployees,acceleratethemtojointlydevelopwiththeCompany,andsimultaneouslyreflectedhumanisticcareoftheCompany.

(3)TrainingplanCombiningwiththeCompany'sdevelopmentstrategy,itcontinuedtostrengthentheCompany'stalenttrainingsystemtohelpemployeesandthecompanydeveloptogether.In2021,itimprovedthesystematictalenttrainingsystemtoprovidesolidsupportfortheCompany'sstrategicdevelopment.First,itorganizedthespecialtrainingof

"ButterflyChangeBreakthrough·WininExecution",comprehensivelypublicizedandimplementedtheexecutionculture,andenhancedtheexecutionandcombateffectivenessofallemployees.Second,itorganizedacasesharingactivityof"SuccessinDetails·WininImplementation",whichenhancedtheinteractionamongemployeesandcultivatedthehabitofactivethinkingandactivelearningamongemployees.Third,itorganizedaseriesactivitiesof"GettoKnowYou·Face-to-Face",inwhichtheChairmanoftheCompanycommunicatedwiththecorebackbonesofaffiliatedenterprises,soastoacquireadeepunderstandingoftheactualsituationandexistingproblemsofenterprisesandcadres,andbetterpromotethesustained,healthyandhigh-qualitydevelopmentoftheGroup.Fourth,itorganizedthemanagementoftrainingpoints,establishedalearningorganization,mobilizedtheenthusiasmofemployeesinlearningandsharing,andpromotedemployees'activelearning.Intermsoftraining,theCompanyhelpedemployeestoopenupnewhorizonsoflearninginmultipledimensions,andpromotetheirpracticalworkbyapplyingtheories.

(4)Outsourcingsituation

□Applicable√NoApplicable

X.SpecificationofprofitdistributionandcapitalizingofcommonreservesFormulation,implementationoradjustmentoftheprofitdistributionpolicy,especiallythecashdividendpolicyduringthereportingperiod

√Applicable□NotapplicableOnApril7,2021,theCompanyheldthe2020annualgeneralmeetingofshareholderstodeliberateandpassthe2020profitdistributionplan.The2020profitdistributionplanoftheCompanyisasfollows:basedontheprofitavailablefordistributionintheconsolidatedstatement,withthetotalsharecapitalof507,772,279sharesasthebaseasofDecember31,2020,acashdividendofRMB0.30(includingtax)willbedistributedtoallshareholdersforevery10shares,withatotalcashdividendofRMB15,233,168.37(includingtax),theremainingundistributedprofitswillbecarriedforwardtothenextyear;Nobonusshareswillbegiven,andnocapitalreservewillbeusedtoincreasecapital.IfthetotalsharecapitaloftheCompanychangesbeforetheimplementationofthedistributionplan,thetotalsharecapitalofdateofrecordwillbetakenasthebasewhenthedistributionplanisimplementedinthefuture,andthespecificamountwillbesubjecttotheactualdistribution.TheCompany'ssharesheldbytheCompanyarenotincludedinprofitdistribution.

Duringtheperiodfromthedisclosureofthedistributionplantoitsimplementation,thetotalsharecapitaloftheCompanywasreducedfrom507,772,279sharesto506,521,849sharesduetothecompletionofcancellationprocedureofrestrictedstockrepurchase.Accordingtotheaboveprofitdistributionplan,theCompany's2020profitdistributionplanisadjustedasfollows:basedontheCompany'sexistingtotalsharecapitalof506,521,849,acashdividendofRMB0.30(includingtax)willbedistributedtoallshareholdersforevery10shares.

Specialdescriptionofcashdividendpolicy
WhetheritmeetstherequirementsoftheArticlesofAssociationortheresolutionofthegeneralmeetingofshareholders:Yes
Whetherthedividendstandardandproportionareexplicitandclear:Yes
Whethertherelevantdecision-makingproceduresandmechanismsarecomplete:Yes
Whethertheindependentdirectorshaveperformedtheirdutiesandplayedtheirduerole:Yes
Whethertheminorityshareholdershavetheopportunitytofullyexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestshavebeenfullyprotected:Yes
Whetherthecashdividendpolicyisadjustedorchanged,andwhethertheconditionsandproceduresarecompliantandtransparent:Yes

Duringthereportingperiod,theCompanymadeaprofitandtheprofitavailabletoshareholdersoftheparentcompanywaspositive,butnocashdividenddistributionplanwasputforward.

□Applicable√NotapplicableProfitdistributionandcapitalizationofcapitalreserveduringthereportingperiod

√Applicable□Notapplicable

Bonussharesforeverytenshares(Shares)0
Cashdividendforeverytenshares(Yuan)(Tax-included)0.50
Atotalnumberofsharesasthedistributionbasis(shares)506,521,849
Cashdividendamount(yuan,includingtax0.50
Othermeans(suchasrepurchaseofshares)cashdividendamount(yuan)0.00
Totalcashdividend(yuan,includingtax)25,326,092.45
Distributableprofit(yuan)130,746,251.74
Proportionofcashdividendinthedistributableprofit100%
Cashdividenddistributionpolicy
Whenthecompany'sdevelopmentstageisinthegrowthperiodandtherearemajorcapitalexpenditurearrangements,whentheprofitdistributioniscarriedout,theproportionofcashdividendsinthisprofitdistributionshouldbeatleast20%.
Detailedexplanationoftheprofitdistributionorcapitalreservetransferplan
Basedonthedistributableprofitsintheconsolidatedstatement,withthetotalsharecapitalof506,521,849sharesasofDecember31,2021asthebase,acashdividendofRMB0.5(includingtax)wasdistributedtoevery10sharesofallshareholders,withatotalcashdividendofRMB25,326,092.45(includingtax).

XI.ImplementationSituationofStockIncentivePlanoftheCompany,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures

√Applicable□Notapplicable

(1)EquityincentiveOnNovember27,2017,theProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanwasexaminedandapprovedinthe7thboardmeetingofthecompany’s7thsessionboardofdirectors,andrelatedproposalsagreedtofulfilltherelevantproceduresandrelatedproposalsagreedtofulfilltherelevantprocedures.PleaserefertoAnnouncementNo.:2017-57,2017-58,2017-62onwww.cninfo.com.cn.Theprogressduringthereportingperiodisnowexplainedasfollows:

1.RegardingtherepurchaseandcancellationofsomerestrictedstocksOnJanuary15,2021,thecompanyheldthe35thmeetingofthe7thBoardofDirectorsandthe25thmeetingofthe7thBoardofSupervisors.Theboardofdirectorsdeliberatedandapprovedthe"ProposalonRepurchaseandCancellationofSomeRestrictedStocks",whichintendstorepurchaseandcancel7,950restrictedstocksheldbyanoriginalincentiveobjectwhoresignedduetopersonalreasons,atarepurchasepriceofRMB5.73pershare;Itisproposedtorepurchaseandcancelthe6,000restrictedsharesheldbyaretiredincentiveobjectatapriceof6.23yuanpershare.

OnFebruary2,2021,thecompanyheldthefirstextraordinarygeneralmeetingofshareholdersin2021toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",agreeingtothecompany'stotalholdingsof1originalincentiveobjectwhoresignedduetopersonalreasons7,950restrictedstockswererepurchasedandcancelledatarepurchasepriceof5.73yuan/share;agreedthatthecompanywouldrepurchaseandcancel6,000restrictedstocksheldbyaretiredincentiveobjectatarepurchasepriceof6.14yuan/share,intotal13,950restrictedstockswererepurchasedandcancelled

OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd

2.Regardingtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationofthethirdphaseofrestrictedstocks

OnMarch10,2021,thecompanyheldthesecondmeetingoftheeighthboardofdirectorsandthesecondmeetingoftheeighthboardofsupervisors.The"ProposalonRepurchaseandCancellationofCertainRestrictedStocks"wasreviewedandpassed,andthecompanyagreedtoprovideincentivesto102Atotalof1,236,480restrictedstocksheldinthethirdperiodthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.TherepurchasepricewascalculatedasthegrantpriceofRMB6.26pershareplustheinterestonbankdepositsduringthesameperiod.

OnApril7,2021,thecompanyheldthe2020AnnualGeneralMeetingofShareholderstoreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedthatthecompanywouldrepurchaseandcancel1,236,480restrictedstocksheldby102incentiveobjectsinthethirdissuethatdidnotmeettheconditionsforliftingtherestrictionsonsales,andtherepurchasepricewasRMB6.26pershare.

OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.EquityincentivesobtainedbydirectorsandseniormanagersoftheCompany

□Applicable√NotapplicableEvaluationmechanismandincentivesofseniormanagersNone

(2)ImplementationofESOP

√Applicable□NotapplicableAlleffectiveESOPsduringthereportingperiod

ScopeofemployeesQuantityofemployeesTotalnumberofsharesheldChangeinformationProportionoftotalsharecapitaloflistedcompaniesFundingsourcesforplanimplementation
Directors,supervisors,seniormanagersandothercoretechnical/business/managementbackbonesoftheCompany(includingsubsidiaries,thesamebelow).1271403600No0.28%TheCompanyemployees'legalremuneration,self-raisedfundsandotherlegalwayspermittedbylawsandregulations.

Shareholdingofdirectors,supervisorsandseniormanagersintheESOPduringthereportingperiod

NamePositionNumberofsharesheldatthebeginningofthereportingperiodNumberofsharesheldattheendofthereportingperiodProportionoftotalsharecapitaloflistedcompanies
ZhangJianChairmanoftheBoard0114,2060.02%
ZhuMeizhuDirector,GeneralManager0114,2060.02%
NingMaozaiDirector,SecretaryofPartyCommitteeandSecretaryofDisciplineInspectionCommission028,5510.01%
LeKunjiuDeputyGM057,1030.01%
LiuHongleiDeputyGM057,1030.01%
HeFeiDirector,CFO057,1030.01%
JiangPengSecretaryoftheBoard057,1030.01%
ZhanLumeiEmployeesupervisor017,1310.00%

Changesinassetmanagementinstitutionsduringthereportingperiod

□Applicable√NotapplicableChangesinequitycausedbyholders'disposalofsharesduringthereportingperiod

√Applicable□NotapplicableDuringthereportingperiod,HuangWeiqiandHeGuangdong,theoriginalholdersoftheCompany'sfirstESOP,

resignedforpersonalreasons.UponconfirmationbythemanagementcommitteeoftheCompany'sfirstESOP,theytransferredtheir50,000sharesinESOPtoHuoZhifeng.Afterthetransfer,HuoZhifeng'sshareinthefirstESOPoftheCompanywaschangedfrom150,000to250,000shares.Exerciseofshareholders'rightsduringthereportingperiodDuringthereportingperiod,theCompany'sESOPwasnotinvolvedinthevotingoftheCompany'sgeneralmeetingofshareholdersandexerciseothershareholders'rights.OtherrelevantinformationanddescriptionofESOPduringthereportingperiod

□Applicable√NotapplicableThemembershipoftheESOPManagementCommitteehaschanged.

□Applicable√NotapplicableFinancialimpactofESOPonlistedcompaniesinthereportingperiodandrelatedaccountingtreatment

□Applicable√NotapplicableTerminationofESOPduringthereportingperiod

□Applicable√NotapplicableOthernoteNone

(3)Otheremployeeincentives

□Applicable√NotapplicableXII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod

(1)ConstructionandimplementationofinternalcontrolDuringthereportingperiod,theCompanytimelyupdatedandimprovedtheinternalcontrolsystemaccordingtotheBasicStandardsforEnterpriseInternalControlanditssupportingguidelines,andestablishedascientific,concise,applicableandeffectiveinternalcontrolsystem.TheAuditCommitteeandtheRiskControlAuditDepartmentjointlyformedtheCompany'sriskinternalcontrolmanagementorganizationsystemtosuperviseandevaluatetheCompany'sinternalcontrolmanagement.Throughtheoperation,analysisandevaluationoftheCompany'sinternalcontrolsystem,therisksinoperationandmanagementareeffectivelyprevented,andtherealizationofinternalcontrolobjectivesispromoted.AccordingtotheidentificationofmajorinternalcontroldefectsintheCompany'sfinancialreport,therewerenomajorinternalcontroldefectsinthefinancialreportonthebasedateoftheinternalcontrolevaluationreport.Inaccordancewiththerequirementsofenterpriseinternalcontrolstandardsystemandrelevantregulations,theCompanyhasmaintainedeffectiveinternalcontroloffinancialreportsinallmajoraspects.AccordingtotheidentificationofmajordefectsintheinternalcontroloftheCompany'snon-financialreports,theCompanyfoundnomajordefectsintheinternalcontrolofnon-financialreportsonthebasedateoftheinternalcontrolevaluationreport.

(2)Detailsofmajorinternalcontroldefectsfoundduringthereportingperiod

□Yes√No

XIII.ManagementandcontroloftheCompany'ssubsidiariesduringthereportingperiod

CompanynameIntegrationplanIntegrationprogressProblemsencounteredinintegrationMeasurestakenforsolutionSolutionprogressSubsequentplannedsolution
NotapplicableNotapplicableNotapplicableNotapplicableNotapplicableNotapplicableNotapplicable

XIV.Internalcontrolself-evaluationreportorinternalcontrolauditreport

(1)Self-evaluationreportoninternalcontrol

DisclosuredateofappraisalreportoninternalcontrolMarch17,2022
DisclosureindexofappraisalreportoninternalcontrolJuchaoWebsite:(http://www.cninfo.com.cn),Self-evaluationreportofinternalcontrolin2021
Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements100.00%
Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements100.00%
StandardsofDefectsEvaluation
CategoryFinancialReportNon-financialReport
QualitativestandardThedefectsrelatedtofinancialreportsweredividedintogeneraldefects,importantdefectsandsignificantdefectsaccordingtotheirseverity.Significantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,whichmayleadtoseriousdeviationfromthecontrollingobjectives.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects.Inthefollowingcircumstances,thecompanywasidentifiedasexistingnon-financial–reportingrelatedsignificantdefectsofinternalcontrollingdefects:Thebusinessactivitiesofthecompanyseriouslyviolatednationallawsandregulations;(2)Thedecision-makingprocessof"Three-Importance&One-Large"wereunscientific,leadingtomajordecisionerrors,andcausingmajorpropertylosestothecompany;(3)Massivelossofkeypostsortechnologytalents;(4)Thecontrollingsysteminvolvingimportantbusinessfieldsofthecompanyfailed;(5)ItCausedseriousnegativeeffectsonbusinessofthecompany,andtheeffectscouldn’tbeeliminated;(6)Theevaluationresultsofinternalcontrolweresignificantdefects,andcouldn’tgeteffectiverectification.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequences
werebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects.
QuantitativecriteriaMisstatementamountoffinancialstatementfellintothefollowingintervals:significantdefects:Misstatementamount≥1.5%oftotalrevenue;Misstatementamount≥10%ofgrossprofit;Misstatementamount≥1%oftotalasset;Misstatementamount≥5%ofnetasset.significantdefects:0.5%ofTotalrevenue≤Misstatementamount<1.5%oftotalrevenue;5%ofgrossprofit≤Misstatementamount<10%ofgrossprofit;0.5%ofTotalasset≤Misstatementamount<1%oftotalrevenue;3%ofNetassets≤Misstatementamount<5%ofnetassets.Generaldefects:0%oftotalrevenue<Misstatementamount<0.5%ofTotalrevenue;2%ofgrossprofit<Misstatementamount<5%oftotalprofit;0%oftotalassets<Misstatementamount<0.5oftotalassets;0%ofnetassets<Misstatementamount<3%ofnetassets.Notapplicable
Numberofmajordefectsinfinancialreporting(a)0
Numberofmajordefectsinnonfinancialreporting(a)0
Numberofimportantdefectsinfinancialreporting(a)0
Numberofimportantdefectsinnonfinancialreporting(a)0

(2)InternalControlauditreport

√Applicable□Notapplicable

Reviewopinionsintheinternalcontrolauditreport
oallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.:Accordingtotherelevantrequirementsofthe“AuditGuidelineofEnterpriseInternalControl”andtheChineseCPAcriteria,thecompanyhasauditedtheeffectivenessofinternalcontrolofthefinancialstatementofShenzhenTextile(Holdings)Co.,Ltd.(ShenzhenTextile)atthedateofDecember31,2021.1.Theresponsibilityofenterprisefortheinternalcontrol.Accordingtotheprovisionsof“FundamentalNormsforEnterpriseInternalControl”,“OperationGuidelineofEnterpriseInternalControl”and“EvaluationGuidelineofEnterpriseInternalControl”,thecompanyhasestablished,perfectedandeffectivelyimplementedtheinternalcontrol,andmadeanevaluationforitseffectiveness,whicharetheresponsibilitiesoftheBoardofDirectorsofShenzhenTextile.
2.TheresponsibilityofCPA.Thecompanyshallberesponsiblefortheexpressionofauditopinionsontheeffectivenessofinternalcontrolinthefinancialstatementandthedisclosureofseriousdeficiencyofinternalcontrolexceptforthefinancialstatementonthebasisoftheimplementationofaudit.3.Theinherentlimitationofinternalcontrol.Thereisthepossibilityofunpreventableerrors.Inaddition,duetothechangeofsituation,theinappropriateinternalcontrolismaybeshown,orthecontrolpolicyandtheabidanceofprocedurecanbereduced.Basedontheauditresultsofinternalcontrol,thefutureinternalcontrolisexpectedtohaveacertainrisk.4.Theauditopinionsofinternalcontrolinthefinancialstatement.ThecompanybelievesthatShenzhenTextilehasmaintainedtheeffectiveinternalcontrolofthefinancialstatementinallthemajoraspectsaccordingto“FundamentalNormsforEnterpriseInternalControl”andtherelevantprovisionsonDecember31,2021GrantThorntonInternationalLtd.(SpecialGeneralPartnership)ChineseC.P.A.ChenZhifangChineseC.P.A.LiuDuoqiMarch15,2022
Disclosuredateofauditreportofinternalcontrol(full-text)Disclosure
Indexofauditreportofinternalcontrol(full-text)March17,2022
Internalauditreport’sopinionJuchaoWebsite:(http://www.cninfo.com.cn);AuditreportofinternalcontroloftheCompany
TypeofauditreportoninternalcontrolUnqualifiedauditor’sreport
Whetherthereissignificantdefectionnon-financialreportNo

HastheCPAsissuedaqualifiedauditor’sreportofinternalcontrol.

□Yes√NoDoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardofDirectors

√Yes□NoXV.Rectificationofself-examinationproblemsinspecialgovernanceactionsoflistedcompaniesAccordingtothedeploymentofChinaSecuritiesRegulatoryCommission,in2021,theCompanyorganizedtheself-inspectionofspecialactionsoflistedcompanies'governance.Duringtheself-inspectionofgovernance,thefollowingproblemswerefound:1.TheCompany'sBoardofDirectorshasnotchangedwhendue;2.ThenumberofindependentdirectorsintheAuditCommitteeoftheCompanydoesnotexceedhalfofthetotal;3.Thedirectors,supervisorsandseniormanagersoftheCompanyfailedtoattend(orattendasanonvotingdelegate)orentrustotherstoattendgeneralmeetingofshareholders,meetingsofboardofDirectorsandBoardofSupervisorsasrequired.Therectificationmeasuresareasfollows:

1.ThroughcommunicationwiththecontrollingshareholderShenzhenInvestmentHoldingsCo.,Ltd.,itlearnedthatShenzhenInvestmentHoldingsreceivedanoticefromthesuperiorthatinprinciple,thedeliberationofcadreandpersonnelmatterswassuspendedduringthechangeofShenzhenMunicipalPartyCommittee.AstheChairmanoftheCompanyisappointedandmanagedbytheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,andthere-electionofShenzhenMunicipalPartyCommitteehasnotyetbeencompleted,thepostponementofthere-electionoftheSeventhBoardofDirectorsandBoardofSupervisorshasbeenreportedtoShenzhenStockExchangeforrecords.OnNovember25,2020,theCompanystartedthechangeofofficeimmediatelyafterreceivingtherecommendationletterfromthecontrollingshareholder,andonFebruary10,2021,itcompletedthechangeofdirectorsandsupervisors;

2.TheAuditCommitteeoftheSeventhBoardofDirectorsoftheCompanyconsistsof4members,including2independentdirectors.Inthepast,theCompanyroutinelyaddedtheChiefFinancialOfficerandtheSecretaryoftheCommissionforDisciplineInspectiontotheAuditCommitteeoftheBoardofDirectors,resultinginlessthanhalfoftheindependentdirectorsintheAuditCommittee.TheAuditCommitteeoftheEighthBoardofDirectorsoftheCompanyconsistsof3members,including2independentdirectors,whichhavebeenrectified;

3.WhentheCompany'sdirectorsandsupervisorsareunabletoattendthegeneralmeetingofshareholders,themeetingsoftheBoardofDirectorsandtheBoardofSupervisorsoftheCompany,theyhaveallfulfilledthecorrespondingleaveprocedures,andthereisnoabsencefromthegeneralmeetingofshareholderswithoutreason.

V.Environmental&SocialResponsibilityI.SignificantenvironmentalissuesWhethertheCompanyoranyofitssubsidiariesisidentifiedasakeypolluterbytheenvironmentauthorities

√Yes□No

CompanyorsubsidiarynameMainpollutantandspecificpollutantnameEmissionwayEmissionportnumberEmissionportdistributionconditionEmissionconcentration(mg/Nm3)ImplementedpollutantemissionstandardsTotalemissionVerifiedtotalemission(Tons)Excessiveemissioncondition
ShenzhenBeautyCenturyGarmentCo.,Ltd.Effluents:CODOpenchanneldischargeaftertreatment1Northwestsideofplantarea<60mg/L60mg/L<2.43t/a2.43t/aNo

Preventionandcontrolofpollutionfacilitiesconstructionandoperation

TheBeautyCenturyCompanywastewatertreatmentfacilitiesadoptthetreatmentprocessesofregulation,hydrolysisacidification,coagulationandairflotation,contactoxidation,coagulationandsedimentationandfiltration.Itiswithstabletreatmentprocess,andgoodeffluenteffectofwastewatertreatment.Thewastewaterfromtheproductionprocesscanmeettheenvironmentalprotectionrequirementsafterbeingtreatedbywastewatertreatmentfacilities.

TheCompanyinvestedRMB960,000tobuildthereusesystemofreclaimedwater,andnowthereuseprojectofreclaimedwaterhasbeenacceptedandstartedoperation.SituationofConstructionprojectenvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicensesTheCompanycompliedwithrelevantenvironmentalprotectionregulationsatsuchthreestagesasprojectdesign,constructionandoperationandobtainedenvironmentalprotectionapprovalsneededateachcorrespondingstageincludingEIAreport,EIAapproval,environmentalprotectionacceptancedecisionandemissionpermitamongothers.EmergencyPlanforEmergencyEnvironmentalIncidentsAccordingtotheactualsituationofthecompany,thepreparationoftheemergencyplanforemergencyenvironmentalincidentswascompleted,andanemergencyenvironmentalemergencyplanfilingapplication

EnvironmentalSelf-MonitoringProgramAccordingtotheenvironmentalmanagementrequirementsofthepollutantdischargepermit,thespecificmonitoringschemeisasfollows:onceevery6hforpHvalueofwastewater,onceperdayforchroma,onceperdayforsuspendedsolids,onceperweekforbiochemicaloxygendemandinfivedays,onceevery6hforchemicaloxygendemand,onceperdayfortotalnitrogen,onceperdaytotalphosphorus,oncepermonthforsulfide,oncepermonthforaniline,onceperyearchlorinedioxide,andtwiceperyearforwastegasatfactoryboundary(onceeverysixmonths).Administrativepenaltiesforenvironmentalproblemsduringthereportingperiod

NameofcompanyorsubsidiaryReasonsforpunishmentViolationsituationPenaltyresultImpactontheproductionandoperationoflistedcompaniesCompany'srectificationmeasures
NoNoNoNoNoNo

OtherEnvironmentalInformationThatShouldBeDisclosedNoneMeasuresandeffectstakentoreduceitscarbonemissionsduringthereportingperiod

√Applicable□Notapplicable

Theuseofreclaimedwatercaneffectivelyreducewastewaterdischarge,and2,500tonsoftapwaterhavebeensavedinthereportingperiod.

OtherEnvironmentalRelatedInformationNoneII.Socialresponsibilities

1.Protectionofshareholders'rightsandinterests

Duringthereportingperiod,theCompanyabidedbylawsandregulations,operatedincompliancewithregulations,andconstantlyimproveditsgovernancestructureandfurtherstandardizedtheCompany'soperationinstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLawandtheGovernanceGuidelinesforListedCompaniesandotherlawsandregulations.Itadheredtotheproceduresystemofgeneralmeetingofshareholders,BoardofDirectors,BoardofSupervisorsandindependentdirectorsasthecore,furtherimprovedthecorporategovernancestructureandvariousmanagementsystems,constantlyimprovedtheinternalcontrolsystemintheprocessoftheCompany'soperationandmanagement,tookeffectiveoperationalriskpreventionmeasures,earnestlysafeguardedandprotectedshareholders'rightsandinterests,andlaidasolidfoundationforthehealthyandsustainabledevelopmentoftheCompany.IndependentdirectorspaidcloseattentiontotheCompany'soperation,putforwardmanyvaluableprofessionalsuggestionsfortheCompany'sdailyoperationandkeyconcerns,andplayedanimportantroleinimprovingthesupervisionmechanismandsafeguardingthelegitimaterightsandinterestsoftheCompanyandallshareholders.TheCompanystrictlyfulfilleditsobligationofinformationdisclosureaccordingtolaw,truly,accurately,completely,timelyandfairlydisclosedinformationthathasasignificantimpactoninvestmentdecision-making.Thedisclosurecontentwasconciseandeasytounderstand,fullyrevealedrisks,andfacilitatedallshareholderstoconsult.Accordingtoregulatoryrequirements,itfurthercombedandimprovedrelevantsystemsandenhancedthequalityofinformationdisclosure.

Duringthereportingperiod,theCompanyfurtherimprovedtheinformationdisclosureandinformationtransparency,fulfilledtheobligationofinformationdisclosureinstrictaccordancewithregulatoryrequirements,communicatedwithinvestorsthroughvariouschannels,answeredquestionsraisedbyinvestorsinatimelymanner,andimprovedinformationtransparency.Meanwhile,itcooperatedwithregulatoryauthoritiestosafeguardtherightsandinterestsofinvestors,especiallysmallandmedium-sizedinvestors,andrealizedthebenigninteractionandharmoniousdevelopmentbetweeninvestorsandlistedcompanies.

2.Protectionofemployees'rightsandinterestsAccordingtotheenterprisedevelopmentstrategy,theCompanyfurtherrevisedandimprovedthehumanresourcemanagementsystem.Itestablishedlaborrelationsbyenteringintolaborcontractswithemployees,andimplementnecessarymanagementforemployeesaccordingtotheLaborLawandrelevantmanagementregulationsoftheCompany.TheCompanyestablishedascientificassessmentanddistributionsystemaccording

totheclassificationofseniormanagers,departmentmanagersandemployees,establishedasystematicandstandardizedperformanceassessmentandevaluationsystem,andconductedacomprehensive,objective,fairandaccurateassessmentofemployees'performanceofdutiesandtasks,whichisusedasthebasisfordeterminingemployees'remunerations,rewardsandpunishmentsandappointments.Itconductedmarket-basedselectionandemployment,createdagoodenvironmentfortalentdevelopment,andconstantlystimulatedinnovationvitalityandmotivation.In2021,theCompanystrivedtocreateagoodcorporatecultureatmosphere,strengthenthepsychologicalcareforemployees,listentotheirinnervoices,andenhanceemployees'senseofgainandbelonging;Meanwhile,itfurtherenhancedtheGroupleaders'understandingofthemindstateofgrass-rootsemployees,bettercaredforandhelpedemployeestogrowintotalents,andregularlyorganizedface-to-facecommunicationbetweentheCompanyleadersandthecorebackboneoftheGroupemployeesandsubordinateenterprises.Inthemeantime,theCompanynewlyrevised3humanresourcemanagementsystems,namely,theManagementMeasuresofShenzhenTextileGroup'sRankPromotion,theManagementSystemofShenzhenTextileGroup'sStaffPerformanceAppraisalandtheInterimMeasuresofShenzhenTextileGroup'sAnnualAdvancedSelection,andoptimizedandimprovedtheCompany'spersonneltraining,performancecompensationmanagementandrankpromotion.Itactivelyguidedandassistedsubordinateenterprisestopromotevarioushumanresourcemanagementnorms,andguidedenterprisestostrengthenremunerationperformancemanagementandmakereasonableadjustmentstoemployees'remunerationlevelaccordingtotheactualsituationofeachenterprise.Itstrengthenedthescientificandstandardizedmanagementofhumanresources,avoidedlaborrisks,improvedthelevelofhumanresourcesmanagement,andfurthermobilizedtheenthusiasmofemployees.

3.EnvironmentalprotectionStrivingtobuildamodern"greenenterprise"istheCompany'slong-termpositiveresponsibility.Weinsistonbuildingthewholeprocessofgreencycleintheindustrialchain,realizingtherealgreencycleeconomy,improvingthequalityoftheCompany'ssurroundingenvironmentandescortingtheCompany'sproduction.Duringthereportingperiod,theOSBLnoise,industrialwastewaterandwastegasemissionsintheCompany'sproductionprocessallpassedthemonitoringoftheenvironmentalprotectiondepartment,andcompliedwiththestandardrequirementsofrelevantlawsandregulations.Duringthereportingperiod,theCompany'sorganicwastegaswastreatedbytherotaryRTOtreatmentprocess,andtheremovalrateofVOCsinorganicwastegasreachedover99%.Onthebasisofmeetingthedischargestandards,thepollutantdischargewasfurtherreduced,andnomajorenvironmentalincidentsoccurred.Inaddition,theCompanyvigorouslyadvocatedgreenoffice,carriedoutvariousformsofenvironmentalprotectionpublicityandeducationactivities,raisedemployees'awarenessofenergyconservationandemissionreduction,realizedthecoordinateddevelopmentofproduction&operationandenvironmentalprotection,andearnestlyfulfilledsocialresponsibilities.

4.Protectionofconsumers'rightsandinterestsTheCompanyhasbeenadheringtothecorevaluesof"honestyorientedandresponsibilityfirst".Beingresponsibleforcustomersisthesourceofourenterprisevalue.Itisourunremittingpursuittoprovidecustomerswithprofessional,personalizedandall-roundproductsandservices.Withcustomerdemandasthecore,continuouslyinnovatingtoservecustomers,andcontinuouslyimprovingandenhancingproductqualityarethedrivingforcefortheCompanytoachievegoodperformanceandsustainabledevelopment,andalsoanimportantguaranteetowincustomers'long-termtrust.Ithasprovidedactiveattentiontocustomerneeds,quickresponsetocustomerfeedback,sincereconsiderationforcustomersandpromotionoflong-termcooperativepartnership.

III.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationDuringthereportingyear,theCompanydidnotcarryouttargetedpovertyalleviationwork,nordidithaveafollow-uptargetedpovertyalleviationplan.

VI.ImportantEvents

I.Commitmentstofulfillthesituation

1.Thefulfilledcommitmentsinthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebythecompany,shareholder,actualcontroller,acquirer,director,supervisor,seniormanagementpersonnelandotherrelatedparities.

√Applicable□Notapplicable

CommitmentCommitmentmakerTypeContentsTimeofmakingcommitmentPeriodofcommitmentFulfillment
CommitmentonsharereformShenzhenInvestmentHoldingsCo.,Ltd.SharereductioncommitmentAsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldiscloseanannouncementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange.August4,2006SustainedandeffectiveUnderFulfillment
Commitmentintheacquisitionreportorthereportonequitychanges
Commitmentmadeupontheassetsreplacement
CommitmentsmadeuponissuanceShenzhenInvestmentHoldingsCo.,Ltd.Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupationShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradicttheinterestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlyOctober9,2009SustainedandeffectiveUnderFulfillment
necessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority.
ShenzhenInvestmentHoldingsCo.,Ltd.Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupationThecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetitionwithShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.July14,2012SustainedandeffectiveUnderFulfillment
AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile.
EquityincentivecommitmentShenzhenTextile(Holdings)Co.,Ltd.Othercommitment1.Thecompanyundertakesnottoprovideloans,loanguarantees,andanyotherformsoffinancialassistancetotheincentiveobjectsforobtainingtherestrictedstocksintheincentiveplan;2.ThecompanyundertakesthatthereisnocircumstancethatthestockincentiveshallbeprohibitedasstipulatedintheprovisionsofArticle7ofthe“MeasuresfortheManagementofStockIncentivesofListedCompanies”.November27,2017May13,2021Completed
Othercommitmentsmadetominorityshareholders
Executedtimelyornot?Yes
Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstageoftheworkingplanNotapplicable

2.Theexistenceofthecompany'sassetsorprojectsearningsforecastsandearningsreportingperiodisstillintheforecastperiod,thecompanyhasassetsorprojectsmeettheoriginalprofitforecastmadeandthereasonsexplained

□Applicable√Notapplicable

II.Particularsaboutthenon-operatingoccupationoffundsbythecontrollingshareholder

□Applicable√NotapplicableNoneIII.Illegalprovisionofguaranteesforexternalparties

□Applicable√NotapplicableNoneIV.ExplanationoftheBoardofDirectorsonthelatest"Non-standardAuditReport"

□Applicable√NotapplicableV.Notesfor“non-standardauditreport”ofCPAsfirmduringtheReportingPeriodbyboardofdirectorsandsupervisoryboard

□Applicable√NotapplicableVI.Explainchangeoftheaccountingpolicy,accountingestimateandmeasurementmethodsascomparedwiththefinancialreportingoflastyear.

□Applicable√NotapplicableNoneVII.Explainchangeoftheconsolidationscopeascomparedwiththefinancialreportingoflastyear.

√Applicable□NotapplicableAsofDecember31,2021,thecompanyhasincluded8subsidiariesinthescopeofconsolidation.Fordetails,pleaserefertoSection10-9,"EquityinSubsidiaries"ofthisreport.Thescopeofthecompany’sconsolidationthisyearhasincreasedbyonehouseholdcomparedtothepreviousyear.Fordetails,pleaserefertoSection10-8"ChangesinConsolidationScopeforOtherReasons"ofthisreport.VIII.Engagement/DisengagementofCPAsCPAscurrentlyengaged

NameofthedomesticCPAsGrantThorntonInternationalLtd(SpecialGeneral
Partnership)
Remunerationfordomesticaccountingfirm(Tenthousandsyuan)87.8
SuccessiveyearsofthedomesticCPAsofferingauditingservices1
NameofCPAChenZhifang,LiuDuoqi
ContinuousyearsofauditservicesofcertifiedpublicaccountantsofdomesticpublicaccountingfirmsThecontinuousservicelifeofChenZhifang'sauditserviceis1year,andthatofLiuDuoqi'sauditserviceis0year.

HastheCPAsbeenchangedinthecurrentperiod

□Yes√No

DescriptionoftheCPAs,financialadviserorsponsorengagedforinternalcontrolauditing

√Applicable□Notapplicable

Duringthereportingperiod,thecompanyengagedGrantThorntonInternationalLtd(SpecialGeneralPartnership)asthecompany'sinternalcontrolauditagencyfor2021,withanauditremunerationofRMB878,000(includingtravelexpensesandotherexpenses).TherelatedfinancialstatementauditfeeisRMB650,000(includingtax),andtheinternalcontrolauditfeeisRMB228,000(includingtax).IX.SituationofFacingListingSuspensionandListingTerminationaftertheDisclosureoftheYearlyReport

□Applicable√NotapplicableX.RelevantMattersofBankruptcyReorganization

□Applicable√NotapplicableNoneXI.MattersofImportantLawsuitandArbitration

√Applicable□Notapplicable

Basicsituationoflitigation(arbitration)Amountinvolved(Tenthousandyuan)WhethertoformestimatedliabilitiesLitigation(arbitration)progressLitigation(arbitration)trialresultsandimpactImplementationoflitigation(arbitration)judgmentsDisclosuredateDisclosureindex
FordetailsoftheCompany'smattersrelatedtoarbitrationandcompensationofitssubsidiaries'2019annualperformancecommitments,pleasereferto24,478.38NoThearbitrationcasewasheardat9:30onDecember1,2020intheSeventh(I)Trialresult:JinjiangGroupisexemptedfromtheperformancecompensationobligationin2019,anddoesnotneedtopaytheRuledMarch30,2021Fordetails,pleaserefertothecompany'sdisclosureonMarch30,2021.(.(http://www.cninfo.com.cn)
"XVII.Majormattersofitssubsidiaries"in"SectionVIImportantMatters".ArbitrationTribunaloftheArbitrationInstituteinShenzhenStockExchange,andthearbitrationtribunalmadearulingonthiscaseonMarch25,2021.compensationfortheperformancedifferencein2019ofRMB244,783,800toSAPOPhotoelectric;ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000inthiscaseshallbebornebyJinjiangGroup;OtherarbitrationrequestsofJinjiangGrouparenotsupported.Thisawardshallbefinalandtakelegaleffectfromthedateitismade.(II)Impact:Thisarbitrationshallbefinal,andtheresultofthearbitrationwillnotaffecttheprofitandlossoftheCompanyortheproductionandoperationofSAPOPhotoelectric.TheCompanyandJinjiang(AnnouncementNo.:2021-29)

XII.SituationofPunishmentandRectification

□Applicable√Notapplicable

NoneXIII.CreditConditionoftheCompanyanditsControllingShareholdersandActualControllers

√Applicable□NotapplicableNosuchcasesintheReportingPeriod.XIV.Materialrelatedtransactions

1.Relatedtransactionsinconnectionwithdailyoperation

□Applicable√NotapplicableNone

2.Related-partytransactionsarisingfromassetacquisitionorsale

□Applicable√NotapplicableNone

3.Related-partytransitionswithjointinvestments

□Applicable√Notapplicable

None

4.Creditsandliabilitieswithrelatedparties

□Applicable√NotapplicableNone

5.Transactionswithrelatedfinancecompany,especiallyonethatiscontrolledbytheCompany

□Applicable√NotapplicableNone

6.TransactionsbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties

□Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties.

7.Othersignificantrelated-partytransactions

□Applicable√NotapplicableNoneXV.Significantcontractsandexecution

1.Entrustments,contractingandleasing

(1)Entrustment

□Applicable√NotapplicableNosuchcasesinthereportingperiod.

(2)Contracting

□Applicable√NotapplicableNosuchcasesinthereportingperiod.

(3)Leasing

□Applicable√NotapplicableNosuchcasesinthereportingperiod.

2.SignificantGuarantees

√Applicable□Notapplicable

InRMB10,000

GuaranteeoftheCompanyforthecontrollingsubsidiaries(Excludecontrolledsubsidiaries)
NameoftheCompanyRelevantdisclosuredate/No.oftheguaranteedamountAmountofGuaranteeDateofhappening(Dateofsigningagreement)ActualmountofguaranteeGuaranteetypeGuaranty(Ifany)Counter-guarantee(Ifany)GuaranteetermCompleteimplementationornotGuaranteeforassociatedparties(Yesorno)
Guaranteeofthecompanyforitssubsidiaries
NameoftheCompanyRelevantdisclosuredate/No.oftheguaranteedamountAmountofGuaranteeDateofhappening(Dateofsigningagreement)ActualmountofguaranteeGuaranteetypeGuaranty(Ifany)Counter-guarantee(Ifany)GuaranteetermCompleteimplementationornotGuaranteeforassociatedparties(Yesorno)
SAPOPhotoelectricMarch18,202048,000September8,202040,912.74GuaranteeingofjointliabilitiesTwoyearsfromthedateofexpirationoftheprincipaldebtNoNo
Totalofguaranteeforsubsidiariesapprovedintheperiod(B1)0Totalofactualguaranteeforsubsidiariesintheperiod(B2)20,353.14
Totalofguaranteeforsubsidiariesapproved48,000Totalofactualguaranteefor40,912.74
atperiod-end(B3)subsidiariesatperiod-end(B4)
Guaranteeofthesubsidiariesforthecontrollingsubsidiaries
NameoftheCompanyRelevantdisclosuredate/No.oftheguaranteedamountAmountofGuaranteeDateofhappening(Dateofsigningagreement)ActualmountofguaranteeGuaranteetypeGuaranty(Ifany)Counter-guarantee(Ifany)GuaranteetermCompleteimplementationornotGuaranteeforassociatedparties(Yesorno)
TheCompany’stotalguarantee(i.e.totalofthefirstthreemainitems)
Totalguaranteequotaapprovedinthereportingperiod(A1+B1+C1)0Totalamountofguaranteeactuallyincurredinthereportingperiod(A2+B2+C2)20,353.14
Totalguaranteequotaalreadyapprovedattheendofthereportingperiod(A3+B3+C3)48,000Totalbalanceoftheactualguaranteeattheendofthereportingperiod(A4+B4+C4)40,912.74
TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4)%14.52%
Including:
Amountofguaranteesprovidedforshareholders,theactualcontrollerandtheirrelatedparties(D)0
Amountofdebtguaranteesprovideddirectlyorindirectlyforentitieswithaliability-to-assetratioover70%(E)0
Portionofthetotalguaranteeamountinexcessof50%ofnetassets(F)0
Totalamountofthethreekindsofguaranteesabove(D+E+F)0

Descriptionoftheguaranteewithcomplexmethod

None

3.SituationofEntrustingOthersforManagingSpotAsset

(1)SituationofEntrustedFinance

√Applicable□NotapplicableOverviewofentrustedwealth-managementduringthereportingperiod

InRMB10,000

SpecifictypeSourceoffundsforentrustedfinancialmanagementTheOccurredAmountofEntrustedWealth-managementUnduebalanceAmountoverdueUn-recoveredofoverdueamount
OtherSelffund58,654.07000
Total58,654.07000

Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal

√Applicable□Notapplicable

InRMB10,000

NameofTrusteeOrganization(orTrusteeName)TypeofTrusteeOrganization(orTrustee)ProductTypeAmountCapitalSourceStartDateExpiryDateFundsAllocationMethodofRewardDeterminationReferenceAnnualizedRateofReturnExpectedIncome(ifany)ActualprofitandlossduringthereportingperiodTheactualrecoveryofprofitandlossduringthereportingperiodAmountofprovisionforimpairment(ifany)WhetherpassedthestatutoryprocedureWhetherthereisanyentrustedfinancialplaninthefutureSummaryofeventsandrelatedsearchindex(ifany)
SouthernAssetsManagementCo.,Ltd.FundMonetaryfund58,654.07SelffundSeptember8,2020December31,2021OtherRedemptiononTday,arrivalonT+1day2.54%451.91451.91NotexpiredYesNotapplicable
Total58,654.07------------451.91451.91--------

Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment

□Applicable√Notapplicable

(2)SituationofEntrustedLoans

□Applicable√Notapplicable

None

4.Othersignificantcontract

√Applicable□Notapplicable

CompanyNameofthePartyMakingthecontractCompanyNameoftheOtherPartyoftheContractContractObjectContractSigningDateBookValueoftheAssetsInvolvedbytheContract(Tenthousandyuan)AssessedValueoftheAssetsInvolvedbytheContract(Tenthousandyuan)AppraisalAgencyName(IfAny)BaseDateofAssessment(ifany)PricingPrincipleTransactionPrice(Tenthousand)WhetherARelatedTractionConnectionRelationExecutionConditionAsOfTheEndOfTheReportingPeriodDateofDisclosureDisclosureIndex
SAPOPhotoelectricHangzhouJinjiangGroupCo.,Ltd.,KunshanZhiqimeiMaterialTechnologyCo.,Ltd.,JapanNittoDenkoCorporationNittoDenkoprovidespolarizermanufacturingtechnologyandrelatedcorporation.November6,2017NoConsideringtheformulationofmarketpriceandtechnicalserviceperiod,thefinaltransactionpriceis86,900NoWithnoassociationrelationshipwiththecompanyInnormalperformanceNovember7,2017Http://www.cninfo.com.cn:(AnnouncementNo.:2017-53)onNovember7,2017

XVI.Explanationonothersignificantevents

√Applicable□Notapplicable

1.Progressofpolarizerindustrializationprojectforultra-largeTV(Line7)Duringthereportingperiod,theCompanystrengthenedstaffingandresourcesupport,overcametheadverseeffectscausedbythepandemic,acceleratedtheprogressofchemicaltestrunofLine7project,andfinallycompletedtheperformancestabilitytestrunandstartedtrialproductionrampupinJuly2021.AsofDecember31,2021,Line7wasinthestageofcapacityrampup,themaintechnicalindicatorssuchasspeedandyieldwerecontinuouslyimproved,andtheintroductionofmajorcustomerproductswasprogressingsteadily,layingasolidfoundationfortherapidincreaseofoversizedordersin2022andtherealizationofproductionlineprofitability.

OnMarch16,2021,allthefundsraisedfromthespecialaccountforraisingfundsofLine7projecthavebeenusedupaccordingtoregulations,andthecompanyhascanceledthespecialaccountforraisingfunds.Fordetails,pleaserefertoAnnouncementNo.:2021-30ofcninfo(http://www.cninfo.com.cn).

AsofDecember31,2021,theaccumulatedsignedcontractamountofLine7projectwasRMB2,091.2441million,andtheactualpaymentwasRMB2,017.5184million(withraisedfundsofRMB409.9535million,anditsownfundsandgovernmentfundsofRMB1,607.5649million).

2.RegardingtheinvestmentintheconstructionoftheRTSrearcuttingproductionlineDuringthereportingperiod,thecompanyaddedinvestmentintheconstructionofacuttingproductionlinefortherearendoftheRTSaftercarefulevaluation.Thetotalinvestmentwascontrolledat30millionyuan,andthesourceoffundswasitsownfundsandbankloans.Themainreasonsforthisinvestment:First,tomeettheneedsofdownstreampanelcustomers,increasethedepthofcustomercooperation,andseizethemarketshareofhigh-marginlarge-sizeproducts;second,toimprovetheoverallcuttingcapacityofthebackend;third,tosimplifytheproductionprocessandimproveproductionefficiency.reducemanufacturingcost.AsofDecember31,2021,TheCompanyisbuilding2RTPproductionlines,oneofwhichhasbeenputintomassproduction,andtheotheroneissubjecttomassproductionramp-up;2RTSproductionlineshavebeenbuilt,and1RTSproductionlineisunderconstruction.Itisexpectedtoachievemassproductionbeforethefirstquarterof2022.

3.ThedisposalofassetsofthejointventurecompanyXieliAutomobilemobileCo.,Ltd.ShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isa

Sino-foreignjointventureinvestedandestablishedbythecompanyandHongKongXieliMaintenanceCompanyin1981,witharegisteredcapitalof3.12millionyuan,andthecompanyholds50%oftheequity.Thecompany'soperatingperiodendedin2008,anditsbusinesslicensewasrevokedin2014.Thecompany'smainassetisrealestate.TheindustrialandcommerciallicenseofShenzhenXieliwascancelledinMarch2020,buttherearestillthreepropertiesunderitsname,thedisposalofwhichisrequiredtoberesolvedafterfurtherconsultationbetweentheshareholdersofbothparties.OnJuly26,2021,theCompanyfiledalawsuitwithYantianDistrictPeople'sCourtinShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulationonMarch9,2020,onwhichthecourtgaveajudgmentonNovember21,2021torevokethecancellationofShenzhenXieliAutomobilemobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulation.

XVII.SignificanteventofsubsidiaryoftheCompany

√Applicable□Notapplicable

1.Mattersconcerningthecompany'scompensationforarbitrationanditssubsidiaries'annualperformancecommitmentsin2019OnMarch9,2020,thecompanyreceivedtheNoticeofArbitration(No.452-2)fromShenzhenInternationalArbitrationCourtandtheApplicationforArbitrationsubmittedbyHangzhouJinjiangGroupCo.,Ltd.,whichistheapplicantofthisarbitrationwhilethecompanyistherespondent.HangzhouJinjiangGroupCo.,Ltd.submittedthefollowingarbitrationrequests:1.TherulingmadethefollowingchangestotheCooperationAgreement:(1)DeletetheoriginalArticle3.1oftheCooperationAgreementandtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled(2)DeletetheoriginalArticle6.4oftheCooperationAgreement,andtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled;2.Therespondentshallbearthearbitrationfeeofthecaseandtheactualexpensesofthearbitraltribunal.Theapplicantreservestherighttofurthermodifythearbitrationrequest.Fordetails,pleaserefertotheAnnouncementof2020-07onthewebsiteofhttp://www.cninfo.com.cn.OnMarch26,2020,thecompanyreceivedtheNoticeonExtendingtheTimeLimitAppointedbyArbitrators(2020SGZSNo.452-3)deliveredbyShenzhenInternationalArbitrationCourt.Duetothecomplexityofthedisputeandthespecialepidemicbackground,theapplicantneedsextratimetonegotiateandcommunicatetheproceduralmattersofthecasewiththerespondent,soitappliestoShenzhenInternationalArbitrationCourttoextendthetimelimitforappointingarbitratorsinthiscase.ShenzhenInternationalArbitrationCourtbelievesthattheapplicant'srequestisreasonable,andbothpartiesarerequestedtonotifyShenzhenInternationalArbitrationCourtinwritingofthearbitrator'sappointmentresultbeforeMarch30,2020.Therefore,thecompanyshallappointanarbitratorbeforeMarch30,2020insteadofwithin15daysafterreceivingthearbitrationnoticeonMarch9,2020,andnotifytheShenzhenInternationalArbitrationCourtoftheresultsinwriting.Fordetails,pleaserefertotheAnnouncementof2020-21onthewebsiteofhttp://www.cninfo.com.cn.

OnApril17,2020,thecompanyreceivedtheNoticeofArbitralTribunalComposition(2020SGZSNo.452-4)fromShenzhenInternationalArbitrationCourt.BothpartiestothearbitrationinformedShenzhenInternationalArbitrationCourtinwritingoftheresultsofarbitratorselectionaccordingtothearbitrationprocedurebeforeMarch30,2020,andappointed1arbitratorrespectivelyand1chiefarbitratortogether.OnApril16,2020,thearbitrationtribunalwasformedtohearthecase.OnDecember1,2020,thearbitrationcasewasheardintheSeventhArbitrationTribunaloftheCourtofArbitrationlocatedattheShenzhenStockExchange.OnMarch25,2021,thecompanyreceivedtheAward(2020SGZCNo.452)deliveredbythearbitraltribunal,andmadearulingonthiscase:1.Theapplicantwasexemptedfromfulfillingthe2019annualperformance

compensationobligationstipulatedinArticle3.1oftheCooperationAgreement,anddoesnotneedtopaySAPOPhotoelectricthecompensationforthedifferenceinperformancein2019ofRMB244,783,800;2.ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000shallbebornebytheapplicant;3.Theapplicant'sotherarbitrationrequestsarenotsupported.Thisawardisfinalandshallcomeintoforceasofthedateofitsmaking.Thisarbitrationisthefinalaward,andtheawardresultwillnotaffectthecompany'sprofitandloss,norwillitaffecttheproductionandoperationofSAPOPhotoelectric.ThecompanyandJinjiangGroupwillcontinuetoactivelyperformtheirshareholders'dutiesbasedontheprincipleofmutualbenefitandwin-win,andeffectivelyimprovetheproductiontechnology,managementlevelandprofitabilityofSAPOPhotoelectric.Fordetails,pleaserefertotheAnnouncementonArbitrationResultsoftheCompanyonJuchaoInformationNetwork(http://www.cninfo.com.cn)(No.2021-29).

2.ProgressinsubsidiariesparticipatingintheestablishmentofindustrialfundsOnNovember16,2017,thecompany'scontrollingsubsidiarySAPOPhotoelectricsignedtheChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)AgreementwiththefundmanagerHuizhiInvestmentManagementCo.,Ltd,generalpartnerJinxinInvestmentCo.,Ltdandotherlimitedpartners,andco-sponsoredtheestablishmentofanindustrialfund,focusingontheopticalfilmindustrychainrelatedprojectsrelatedtothecompany'smainbusiness,withafundsizeof50millionyuan.SAPOPhotoelectric,asoneofthelimitedpartnersoftheindustrialfund,subscribedforacapitalcontributionof28.5millionyuan.FordetailsJuchaoWebsite:(http://www.cninfo.com.cn.(AnnouncementNo.2017--55).

OnFebruary10,2018,ChangxingJunyingEquityInvestmentPartnershipcompletedtheindustrialandcommercialregistrationandcompletedtheprivateequityinvestmentfundregistrationonFebruary8,2018.FordetailsJuchaoWebsite:(http://www.cninfo.com.cn.(AnnouncementNo.2018--05).AsofDecember31,2021,ChangxingJunyinghadaccumulated3investmentprojectswithatotalinvestmentof42millionyuan.

NoNameInvestmentFundcontribution(RMB10,000)
1ShenzhenKaichuangShijiaTechnologyCo.,Ltd.OpticalFilm1,400
2ShenzhenShenfuyuElectronicTechnologyCo.,Ltd.OpticalFilm1,300
3ShenzhenHengbaoshunTechnologyDevelopmentCo.,Ltd.OpticalFilm1,500

3,Mattersconcerningthesubsidiary'saccreditationbyGuangdongEngineeringTechnologyResearchCenterOnAugust20,2021,theGuangdongProvincialDepartmentofScienceandTechnologyissuedthe"NoticeoftheGuangdongProvincialDepartmentofScienceandTechnologyonRecognizingthe2021GuangdongEngineeringTechnologyResearchCenter"(YueKeHanSanZi[2021]No.1021),accordingtotheresultsofexpertreview,the"GuangdongProvinceShengboOptoelectronicsEngineeringTechnologyResearchCenterintheFieldofNewMaterials"builtbythecompany'sholdingsubsidiaryShengboOptoelectronicswasidentifiedasthe"2021GuangdongEngineeringTechnologyResearchCenter".Thisrecognitionfullyaffirmsthecompany'sstrongtechnologicalinnovationandR&Dstrength,demonstratesthecompany'ssignificantadvantagesintechnologicalinnovation,technologyresearchanddevelopmentandtalentteamsinthefieldofpolarizers,andhelpsthecompanytocontinuouslyimprovethelevelofscientificresearchandscientificandtechnologicalachievements.Theabilitytotransformandenhancethecompany'smarketcompetitiveadvantageistheembodimentofthecompany'scomprehensivestrength.Thecompanywillcontinuetobuildtheresearchcenter,combinethecompany'sbusinessstrategy,deepenindustry-university-researchcooperation,cultivatescientificandtechnologicalinnovationtalents,vigorouslypromotetechnologicalinnovation,andprovideafavorableplatformsupportforpromotingthehigh-qualitydevelopmentofthepolarizerbusiness.

4.MattersonthelistingandleasingofsomepropertiesinBlockCofShenzhenTextileBuildingOnJuly13,2021,thecompanyheldthefifthmeetingoftheeighthboardofdirectorstoreviewandapprovetheProposalonListingandLeasingSomePropertiesinBlockCofShenzhenTextileBuilding,andagreedthatthecompanywillpubliclylistandlease6,100squaremetersofpropertiesofthe8F-10Fand1FlobbyofBlockCofShenzhenTextileBuildingthroughShenzhenUnitedPropertyandShareRightsCo.,Ltd.,withaleasetermof10years(includingarent-freeperiodof6months),andtherentalpriceisnotlowerthan85yuan/㎡/month(includingpropertymanagementfee).Therentwillincreaseby5%everythreeyearsfromthedateofcontractconclusion,andthefinaltransactionpricewillbedeterminedaccordingtothelistingresult.Fordetails,pleaserefertotheAnnouncementofResolutionsoftheFifthMeetingoftheEighthBoardofDirectorsofthecompany(No.2021-44)onJuchaoInformationNetwork(http://www.cninfo.com.cn).

OnSeptember18,2021,theCompanyreceivedtheNoticeofLeaseResultfromShenzhenUnitedPropertyandEquityExchangeCo.,Ltd.,confirmingthatthelesseewasShenzhenHaizhiguangHotelManagementLTD,withaleasetermof10years(including6monthsrent-freeperiod),atatransactionpriceof86yuan/m

/month(includingpropertymanagementfee),andtherentwillincreaseby5%everythreeyearssincethesigningofthecontract;OnSeptember17,2021,theCompanysignedthecontractwiththelessee,andthefollow-upleasedpropertywasplannedtobeusedfortheoperationofAtourHotel.

RegardingpartialpremisesinBlockCofShenzhenTextileBuildingforleasethistime,itwilltransferthemarketriskfromself-operatedhotelstobrandhoteloperatorsthroughoverallexternallease,whichwillhelpimprovetheoveralloperationalefficiencyoftheCompany'sassets,reduceoperationalrisks,bringstablerentalincometotheCompanyandhelptomaintainandincreasethevalueofstate-ownedassets.5.MattersonliquidationandcancellationofShenzhenTextileImport&ExportCo.,Ltd.OnJuly13,2021,thecompanyheldthefifthmeetingoftheeighthboardofdirectorstoreviewandapprovetheProposalonLiquidationandCancellationofShenzhenTextileImport&ExportCo.,Ltd.,andagreedontheLiquidationReportofShenzhenTextileImport&ExportCo.,Ltd..completedbytheliquidationgroup,andliquidatedanddistributeditsassetsinaccordancewithlegalprocedures,andcompletedformalitiessuchasindustrialandcommercialcancellation.TheliquidationandcancellationofShenzhenTextileImport&ExportCo.,Ltd.(hereinafterreferredtoas"ShenzhenTextileImport&Export")willchangethescopeofthecompany'sconsolidatedfinancialstatements,facilitatethedisposalofinefficientassets,reducemanagementcosts,andwillnotaffectthecompany'sproductionandoperation.TheimpactofthecancellationofShenzhenTextileImport&ExportinthisliquidationonthecurrentprofitsandlossesisestimatedtobeRMB7.64million,Theannualauditoftheauditinstitutionhasbeenconfirmed.Fordetails,pleaserefertotheAnnouncementonLiquidationandCancellationofShenzhenTextileImport&Export.(No.2021-45)issuedbyJuchaoInformationNetwork(http://www.cninfo.com.cn).

6.Mattersonwaiverofpreemptionrightandequitytransferofholdingsubsidiaries

OnNovember27,2020,thecompanyreceivedthe"Letter"sentbyJinjiangGroup,informingthecompanyinwritingthatitintendstoacquirethe40%equityofSAPOPhotoelectricheldbyHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership)(hereinafterreferredtoas"JinhangInvestment");OnDecember21,2020,thecompanyreceivedtheNoticeofEquityTransferfromJinhangInvestment,informingthecompanyinwritingthatJinhangInvestmentintendstotransferits40%equityofSAPOPhotoelectric,andaccordingtotheCompanyLawofthePeople'sRepublicofChinaandtheArticlesofAssociationofShenzhenSAPOPhotoelectricTechnologyCo.,Ltd.,itspeciallysoughtthecompany'sopinionsonthetransfermatters.

OnDecember25,2020,afterresearchanddecision-making,thecompanyformallyrepliedtoJinhangInvestment,andthecompanygaveupthepreemptiverighttoexercisethe40%equityofSAPOPhotoelectric,the

holdingsubsidiaryofthecompanyheldbyJinhangInvestment.Fordetails,pleaserefertotheAnnouncementonWaiverofPreemptiveRightsofHoldingSubsidiaries(No.2020-57)onJuchaoInformationNetwork(http://www.cninfo.com.cn)onDecember26,2020.InJuly2021,thecompanyreceivedtheLetterfromJinjiangGroup,informingthecompanyabouttheprogressoftheabove-mentionedequitytransfer:JinhangInvestmentandtheintendedtransfereeSuzhouAdvantageFordInvestmentCenter(LimitedPartnership)(hereinafterreferredtoas"AdvantageFord")havecompletedtheirinternaldecision-makingexaminationandapproval,andthedeliveryconditionsforAdvantageFordtoaccept100%ofthepartnershipshareofJinhangInvestmenthavebeenmet,andbothpartieswillpromotethetransferofthepartnershipshare.Afterthecompletionofthetransferprocedure,AdvantageFordwilldirectlyhold

99.93333%ofthepartnershipshareofJinhangInvestment;Meanwhile,ZhejiangHengjieIndustrialCo.,Ltd.indirectlyholdsapartnershipshareof0.06667%ofJinhangInvestment.AsofJuly28,2021,fortheaboveequitytransfer,theindustrialandcommercialchangeregistrationprocedureshavebeencompleted.Afterthecompletionofthisequitytransfer,theshareholdersandequityratioofSAPOPhotoelectric,theholdingsubsidiaryofthecompany,remainunchanged,andthescopeoftheconsolidatedstatementsofthecompanyhasnotchanged.AdvantageFordholds40%equityofSAPOPhotoelectricthroughJinhangInvestment,andthestrategicinvestorofSAPOPhotoelectricwillbechangedfromJinjiangGrouptoAdvantageFord.AdvantageFordhasrichindustrialresources,industrialinvestmentandmanagementexperience,andbothpartieswillgivefullplaytotheirrespectiveadvantagestofurtherimproveandstrengthenthemainbusinessofpolarizer.Fordetails,pleaserefertotheProgressAnnouncementonWaiverofPreemptiveRightsandEquityTransferofHoldingSubsidiaries(No.2021-47)onJuchaoInformationNetwork(http://www.cninfo.com.cn).

VII.ChangeofsharecapitalandshareholdingofPrincipalShareholders

I.Changesinsharecapital

(1)Changesinsharecapital

Inshares

BeforethechangeIncrease/decrease(+,-)AftertheChange
AmountProportionShareallotmentBonussharesCapitalizationofcommonreservefundOtherSubtotalQuantityProportion
1.Shareswithconditionalsubscription1,326,4050.26%000-1,254,405-1,254,40572,0000.00%
1.State-ownedshares00.00%0000000.00%
2.State-ownedlegalpersonshares00.00%0000000.00%
3.Otherdomesticshares1,326,4050.26%000-1,254,405-1,254,40572,0000.00%
Incl:Domesticlegalpersonshares00.00%0000000.00%
DomesticNaturalPersonshares1,326,4050.26%000-1,254,405-1,254,40572,0000.00%
4.Foreignshare00.00%0000000.00%
Incl:Foreignlegalpersonshare00.00%0000000.00%
ForeignNaturalPersonshares00.00%0000000.00%
II.Shareswithunconditionalsubscription506,445,87499.74%0003,9753,975506,449,8491.00%
1.CommonsharesinRMB457,017,87490.00%0003,9753,975457,021,8490.90%
2.Foreignsharesindomesticmarket49,428,0009.74%0000049,428,0000.10%
3.Foreignsharesinforeignmarket00.00%0000000.00%
4.Other00.00%0000000.00%
III.Totalofcapitalshares507,772100.00000-1,250,4-1,250,4506,52100.00
,279%30301,849%

Reasonsforsharechanged

√Applicable□NotapplicableThecompany’sperformancein2020didnotmeettheconditionsforthereleaseofthesecondsalerestrictionperiodstipulatedinthe2017RestrictedStockIncentivePlan,accordingtothecompany’sRestrictedStockIncentivePlanin2017,ChapterVIIIoftherestrictedstockgrantconditionsAndtheconditionsforliftingthesalesrestriction,Iftheconditionsforliftingthesalesrestrictioninthecurrentperiodarenotmet,thecompanywillrepurchasetherestrictedstocksthatcanbereleasedforthecurrentyearandcanceltheminaccordancewiththeprovisionsofthisplan.Thesecondphaseheldbythecompanyfor102incentiveobjectsThe1,236,480restrictedstocksthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.Secondly,thecompany'soriginalincentiveobjectJiangShengyuanleftduetopersonalreasons,.AccordingtotherelevantprovisionsoftheIncentivePlan(Draft),theabove-mentionedpersonnelnolongermeettheincentiveconditions,andthecompanyshallrepurchaseandcancelthe7,950restrictedstocksthathavebeengrantedbutnotyetlifted.Thirdly,thecompany’soriginalincentiveobject,MuLinying,retires.Accordingtothecompany’s"2017RestrictedStockIncentivePlan",thispersonnolongermeetstheincentiveconditions,andthecompanyhasgranted6,000restrictedstocksthathavenotbeenlifted.Cancellationofrepurchase.Insummary,atotalof1,250,430restrictedstockswererepurchasedandcancelled.Fordetails,pleaserefertothe"AnnouncementonRepurchaseandCancellationofCertainRestrictedStocks"(No.2021-03and2021-25,2021-30)ofthecompanyonwww.cninfo.com.cn.OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.FordetailsJuchaoWebsite:(http://www.cninfo.com.cn.(AnnouncementNo.2021--35).Inaddition,ZhangXiaodong,theformeremployeesupervisorofthecompany,resignedonFebruary10,2021,andhis1,325unrestrictedshareswereconvertedintorestrictedshares.OnAugust11,2021,thesalesrestrictionswere

lifted,andtheywereconvertedintounrestrictedshares.

ApprovalofChangeofShares

√Applicable□NotapplicableTheaboverepurchaseandcancellationofsomerestrictedstockswereapprovedbythe35thmeetingoftheseventhBoardofDirectorsofthecompany,the25thmeetingoftheseventhBoardofSupervisors,thefirstprovisionalshareholders'generalmeetingof2021,thesecondmeetingoftheeighthBoardofDirectors,thesecondmeetingoftheeighthBoardofSupervisors,andtheannualshareholders'generalmeetingofs2020.FordetailsJuchaoWebsite:(http://www.cninfo.com.cn.(AnnouncementNo.2021--01,2021-02,2021-11,2021-17,2021-18and2021-31).Ownershiptransferofsharechanges

√Applicable□NotapplicableRegardingthetransferoftheaboverestrictedstocks,PekingCertifiedPublicAccountants(specialgeneralpartnership)verifiedsomerestrictedstockscancelledbytheaboverepurchaseandissuedthecapitalverificationreportQXYZ/20210013.OnMay13,2021,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.FordetailsJuchaoWebsite:(http://www.cninfo.com.cn.(AnnouncementNo.2021--35).InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod

√Applicable□Notapplicable

AftertheCompanyrepurchasedandcancelledsomerestrictedstocks,thetotalcapitaloftheCompanywaschangedfrom507,772,279sharesto506,521,849shares.TheimpactofthissharechangeontheCompany'sfinancialindicatorssuchasbasicearningspershareanddilutedearningspershare,netassetspershareattributabletothecompany'scommonshareholdersinthelatestyearandperiodisasfollows:

Items20202021
AccordingtotheoriginalcapitalAccordingtothenewcapitalAccordingtothenewcapital
Basicearningspershare(yuan/share)0.070.070.12
Dilutedearningspershare0.070.040.08
Netassetspershare5.455.465.56

Otherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

(2)Changeofshareswithlimitedsalescondition

InShares

ShareholderNameInitialRestrictedSharesNumberofUnrestrictedSharesThisTermNumberofIncreasedRestrictedSharesThisTermRestrictedSharesintheEndoftheTermReasonforRestrictedSharesDateofRestrictionRemoval
ZhangXiaodong3,9751,3255,3000SupervisorsshallnottransfertheirsharesinthecompanywithinthehalfyearafterresignationAugust11,2021
Total3,9751,3255,3000----

II.Securitiesissueandlisting

1.ExplanationoftheSituationoftheSecurityIssue(NoPreferredShares)intheReportPeriod

□Applicable√Notapplicable

2.Changeofassetandliabilitystructurecausedbychangeoftotalcapitalsharesandstructure

√Applicable□NotapplicableFordetails,pleasereferto"XI.ImplementationoftheCompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures1.Equityincentive"in"SectionIVCorporateGovernance"ofthisreport.

3.Abouttheexistingemployees’shares

□Applicable√NotapplicableIII.Shareholdersandactualcontrollingshareholder

1.Numberofshareholdersandshareholding

InShares

Totalnumberofcommonshareholdersattheendofthereportingperiod25,021Totalshareholdersattheendofthemonthfromthedateofdisclosingtheannualreport24,982Thetotalnumberofpreferredshareholdersvotingrightsrestoredatperiod-end(ifany)(Note8)0Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed(ifany)(Note8)0
Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders
ShareholdersNatureofshareholderProportionofsharesheld(%)Numberofsharesheldatperiod-endChangesinreportingperiodAmountofrestrictedsharesheldAmountofun-restrictedsharesheldNumberofsharepledged/frozen
StateofshareAmount
ShenzhenInvestmentHoldingsCo.,Ltd.State-ownedlegalperson46.21%234,069,4360234,069,436
ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.State-ownedLegalperson3.18%16,129,032016,129,032
SunHuimingDomesticNatureperson1.19%6,008,6532,783,8866,008,653
DengYanDomesticNatureperson0.99%4,993,8002,716,1004,993,800
SuWeipengDomesticNatureperson0.56%2,823,06602,823,066Pledge2,800,000
MaoYuxiaDomesticNatureperson0.55%2,792,4002,792,4002,792,400
ChinaConstructionBank-CindaAustraliaBankNewEnergyIndustryEquitySecuritiesInvestmentFundOther0.49%2,477,7202,477,7202,477,720
QiJianhongDomesticNatureperson0.44%2,218,800920,1002,218,800
LiZengmaoDomesticNatureperson0.41%2,082,997484,2002,082,997
ZhangMuxiuDomesticNatureperson0.36%1,808,8001,808,8001,808,800
Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)(SeeNotes3)None
ExplanationonshareholdersparticipatinginthemargintradingbusinessAmongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany.
Aboveshareholdersentrustingorentrustedwithvotingrights,orwaivingvotingrightsNone
Top10shareholdersincludingthespecialaccountforrepurchase(ifany)(seenote10)None
Shareholdingoftop10shareholdersofunrestrictedshares
NameoftheshareholderQuantityofunrestrictedsharesheldattheendofthereportingperiodSharetype
SharetypeQuantity
ShenzhenInvestmentHoldingsCo.,Ltd.234,069,436CommonsharesinRMB234,069,436
ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.16,129,032CommonsharesinRMB16,129,032
SunHuiming6,008,653Foreignsharesindomesticmarket6,008,653
DengYan4,993,800CommonsharesinRMB4,993,800
SuWeipeng2,823,066CommonsharesinRMB2,823,066
MaoYuxia2,792,400CommonsharesinRMB2,792,400
ChinaConstructionBank-CindaAustraliaBankNewEnergyIndustryEquitySecuritiesInvestmentFund2,477,720CommonsharesinRMB2,477,720
QiJianhong2,218,800CommonsharesinRMB2,218,800
LiZengmao2,082,997CommonsharesinRMB2,082,997
ZhangMuxiu1,808,800CommonsharesinRMB1,808,800
Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholdersAmongthetop10commonshareholders,ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.donotconstituteaconcertedpartyrelationship.Inaddition,thecompanydoesnotknowwhetherthereisanassociatedrelationshipamongthetop10ordinaryshareholders,andbetweenthetop10ordinaryshareholdersandthetop10shareholders,orwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompany.
Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4)None

Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod.

□Yes√NoThetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.

2.ControllingshareholderNatureofControllingShareholders:LocalstateholdingType:Legalperson

NameoftheControllingshareholderLegalrepresentative/LeaderDateofincorporationOrganizationcodePrincipalbusinessactivities
ShenzhenInvestmentHoldingsCo.,Ltd.HeJianfengOctober13,200476756642-1Investmentandacquisitionoffinancialandsimilarfinancialstockrightssuchasbank,security,insurance,fundandguarantee;Engageinrealestatedevelopmentandmanagementbusinesswithinthelimitoflegally-acquiredlanduseright;Carryoutinvestmentandserviceinthefieldofstrategicemergingindustry;Carryoutinvestment,operationandmanagementofstate-ownedstocksofwholly-owned,holdingandjoint-stockcompanybyreorganization&integration,capitaloperationandassetdisposal;OtherbusinessesundertakenbyauthorizationofmunicipalSASAC(StateAssetSupervisionandAdministrationCommission)(Iftheabovebusinessscopeneedstobeapprovedaccordingtonationalregulations,thebusinesscanonlybeoperatedaftertheapprovalisobtained)
Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiodShenPropertyA(000011),Quantityofshares301.41million,Shareholdingratio:50.57%;SPGA(000029),Quantityofshares578.6million,Shareholdingratio:57.19%;ShenUniverseA(000023),Quantityofshares9.59million,Shareholdingratio:6.91%;Pingan(601318),Quantityofshares962.72million,Shareholdingratio:5.27%;GuosenSecurities(002736),Quantityofshares3,223.11million,Shareholdingratio:33.53%;GuotaiJunan(601211),QuantityofAshares609.43million,QuantityofHshares103.37million,Totalshareholdingratio:8.00%;TellingHolding(000829),Quantityofshares195.03million,Shareholdingratio:19.03%;ShenzhenInternational(00152),Quantityofshares985.64million,Shareholdingratio:43.48%;BeautyStar(002243),Quantityofshares604.82million,Shareholdingratio:49.96%;HopewellHighway(00737),Quantityofshares2,213.45million,Shareholdingratio:71.83%;Infinova(002528),Quantityofshares315.83million,Shareholdingratio:26.35%;EternalAsia(002183),Quantityofshares388.45million,Shareholdingratio:14.96%;ShenEnergy(000027),Quantityofshares6.77million,Shareholdingratio:0.14%;BankCommunication(601328),Quantityofshares9.52million,Shareholdingratio:0.01%;TehanEcological(300197),Quantityofshares113.98million,Shareholdingratio:4.04%;ChinaVANKE(02202),Quantityofshares77.27million,Shareholdingratio:0.66%;ShenzhenWater(301038),Quantityofshares49.50million,Shareholdingratio:37.50%.

Changesofcontrollingshareholderinreportingperiod

□Applicable√NotapplicableNochangesofcontrollingshareholderfortheCompanyinreportingperiod.3.InformationaboutthecontrollingshareholderoftheCompanyActualcontrollernature:LocalstateownedassetsmanagementActualcontrollertype:Legalperson

NameoftheactualcontrollerLegalrepresentative/LeaderDateofincorporationOrganizationcodePrincipalbusinessactivities
State-ownedAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernmentWangYongjianJuly30,2004K3172806-7Performingtheresponsibilitiesofinvestorsonbehalfofthestateandsupervisingandmanagingstate-ownedassetsaccordingtoauthorizationandlaw.
Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiodItdirectlyheld40.10%equityofShenzhenGas(601139);Itdirectlyheld21.93%equityofShenzhenZhenye(000006);Itdirectlyheld43.91%equityofShenzhenEnergy(000027);

Changesofcontrollingshareholderinreportingperiod

□Applicable√NotapplicableNochangesofcontrollingshareholderfortheCompanyinreportingperiodBlockDiagramoftheownershipandcontrolrelationsbetweenthecompanyandtheactualcontroller

Theactualcontrollercontrolsthecompanybymeansoftrustormanagingtheassetsinotherway

□Applicable√Notapplicable

4.Thecumulativenumberofsharespledgedbythecontrollingshareholderorthelargestshareholderofthecompanyanditspersonactinginconcertaccountsfor80%ofthenumberofsharesheldbythecompany

□Applicable√Notapplicable

5.Particularsaboutotherlegalpersonshareholderswithover10%shareheld

□Applicable√Notapplicable

6.SituationofShareLimitationReductionofControllingShareholders,ActualControllers,RestructuringPartyandOtherCommitmentSubjects

□Applicable√Notapplicable

IV.Specificimplementationofsharerepurchaseduringthereportingperiod

Progressinimplementationofsharerepurchase

□Applicable√NotapplicableImplementationprogressofreducingrepurchasedsharesbycentralizedbidding

□Applicable√Notapplicable

VIII.SituationofthePreferredShares

□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod.

IX.CorporateBond

□Applicable√Notapplicable

X.FinancialReport

(1)Auditreport

TypeofauditopinionStandardUnqualifiedopinion
DateofsignatureofauditreportMarch15,2022
NameofauditfirmGrantThorntonInternationalLtd.(SpecialGeneralPartnership)
TheauditreportnumberZiTongShenZi(2022)No.:441A002000
NamesoftheCertifiedPublicAccountantsChenZhifang,LiuDuoqi

Auditors’Report

ToallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.:

I.OpinionWehaveauditedthefinancialstatementsofShenzhenTextile(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisethebalancesheetasatDecember31,2021,andtheincomestatement,thestatementofcashflowsandthestatementofchangesinowners'equityfortheyearthenendedandnotestothefinancialstatements.Inouropinion,theattachedfinancialstatementsareprepared,inallmaterialrespects,inaccordancewithAccountingStandardsforBusinessEnterprisesandpresentfairlythefinancialpositionoftheCompanyasatDecember31,2021anditsoperatingresultsandcashflowsfortheyearthenended.II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

(1)RecognitionofrevenuePleaserefertoNoteV,26andNoteVII,42tothefinancialstatementfordetailsoftherelevantinformationdisclosure.

1.Descriptionofmatters

TheoperatingincomeofShenzhenTextilein2021wasRMB2,293.7479million,ofwhichthemainbusinessincomewasRMB2,265.9906million,accountingfor98.79%.AsrevenueisoneofthekeyperformanceindicatorsofShenzhenTextile,thereisinherentriskthattheCompany'smanagementmanipulatesrevenuerecognitioninordertoachievespecificgoalsorexpectations,andsincethemainbusinessincomeislarge,weidentifyrevenuerecognitionasakeyaudititem.

2.ResponsetotheauditForrevenuerecognition,wemainlyimplementedthefollowingauditprocedures:

(1)Understand,evaluateandtestthedesigneffectivenessandoperationeffectivenessofinternalcontrolrelatedtosalesrevenuecycle;

(2)Obtainthemainsalescontractsaccordingtotheproductsandbusinesstypes,checktherelevantclausesrelatedtorevenuerecognition,andinterviewthemanagementtoevaluatewhethertherevenuerecognitionmeetstherequirementsofaccountingstandards;

(3)Implementanalyticalprocedures,comparethechangesofincomebetweenthisyearandlastyearaccordingtoproducttypes,observethefluctuationsofincomebetweenmonthsandthechangesofimportantcustomersinthisperiod,andanalyzetherationalityofincomechangesbasedonfactorssuchasthecompany'sproductioncapacity,marketexpansionandindustrytrends;

(4)Performdetailedteststocheckwhetherthebasisrelatedtosalesrevenuerecognitionissufficient,includingcheckingsalescontractsorperformingdetailedtests,includingcheckingsalescontractsororders,deliveryorders,customsdeclarationsandothersupportingdocuments,evaluatetheauthenticityandaccuracyofrevenuerecognition,andevaluatetheauthenticityandaccuracyofrevenuerecognition;

(5)Performcut-offtesttoevaluatewhetherincomeisrecordedintheproperaccountingperiod;

(6)Selectsamplesfrommajorcustomersonthisrecognitionprocedures,andperformalternativetestsonthenon-repliedpartstojudgetheauthenticityofsalesrevenue.

(2)InventoryfallingpricereservesPleaserefertoNoteV,12andNoteVII,8tothefinancialstatementfordetailsoftherelevantinformationdisclosure.

1.DescriptionofmattersAsofDecember31,2021,thebalanceofinventorydepreciationreserveofShenzhenTextileisRMB98.0359million.Astheinventorydepreciationreserveanditschangeshaveasignificantinfluenceonthefinancialstatements,thedeterminationofthenetrealizablevalueofinventoryinvolvesthemajorjudgmentandestimationofthemanagement,soweidentifytheinventorydepreciationreserveasakeyaudititem.

2.Responsetotheaudit

Theauditprocessimplementedforinventoryfallingpricereservesincludesmainly:

(1)Understand,evaluateandtestthedesignandoperationeffectivenessofinternalcontrolrelatedtoinventorydepreciationreserve;

(2)UnderstandandevaluatetheappropriatenessoftheCompany'saccrualpolicyforinventorydepreciationreserve;

(3)Understandandinquireaboutinventorystoragelocationandinventoryaccountingmethod,anddeterminethescopeofinventorysupervision;Implementinventorysupervisionprocedurestocheckwhethertheinventoryisdamaged,obsolete,outdated,defective,etc.;

(4)Obtaintheinventoryyear-endinventoryagelist,andcarryoutanalyticalreviewofinventoryageaccordingtothestatusofproductstoanalyzewhethertheinventorydepreciationreserveisreasonable;

(5)Reviewandevaluatetherationalityofthemajorestimatesmadebythemanagementwhendeterminingthenetrealizablevalue;

(6)Obtainthecalculationtableofinventorydepreciationreserve,checkwhethertheaccrualofinventorydepreciationreserveisimplementedaccordingtorelevantaccountingpolicies,andrecalculatetheinventorydepreciationreserve;Checkthechangesofinventorydepreciationaccruedinpreviousyears,evaluatetherationalityofestimatedsellingpriceandestimatedrelatedtaxesandfeesaskeyparametersofnetrealizablevalue,reviewthesufficiencyofbasisofestimatedsellingprice,andanalyzetherationalityofinventorydepreciationreserve.IV.OtherinformationThemanagementoftheCompanyisresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2021,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard

V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsTheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.

ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.

VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfrom

fraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.

(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.

(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagementoftheCompany.

(4)ConcludeontheappropriatenessofusingthegoingconcernassumptionbythemanagementoftheCompany,andconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatementsandbearallliabilityfortheopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GrantThorntonInternationalLtd.(SpecialGeneralPartnership)

ChineseC.P.A.ChenZhifang(ProjectPartner)BeijingChinaChineseC.P.A.LiuDuoqi

II.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY

(1)ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.

InRMB

ItemsDecember31,2021December31,2020
Currentasset:
Monetaryfund302,472,828.60279,087,236.95
Settlementprovision
Outgoingcallloan
Transactionalfinancialassets586,540,735.16684,617,260.06
Derivativefinancialassets
Notereceivable149,942,880.2816,813,657.28
Accountreceivable479,998,708.57547,310,217.90
Financingofreceivables21,474,101.07102,051,314.08
Prepayments15,406,619.5316,902,516.39
Insurancereceivable
Reinsurancereceivable
ProvisionsofReinsurancecontractsreceivable
Otheraccountreceivable140,185,750.405,265,002.71
Including:Interestreceivable
Dividendreceivable
Repurchasingoffinancialassets
Inventories667,461,447.03480,847,581.44
Contractassets
Assetsheldforsales
Non-currentassetduewithin1year
Othercurrentasset29,503,352.4277,482,083.47
Totalofcurrentassets2,392,986,423.062,210,376,870.28
Non-currentassets:
Loansandpaymentonother’sbehalfdisbursed
Creditor'srightinvestment
Othercreditor'srightinvestment
Long-termreceivable
Longtermshareequityinvestment133,022,325.77147,929,137.23
Otherequityinstrumentsinvestment186,033,829.72190,607,427.54
Othernon-currentfinancialassets30,650,943.4030,650,943.40
Realestateinvestment106,217,779.76110,572,471.92
Fixedassets2,424,741,252.86790,183,905.38
Constructioninprogress71,482,031.081,301,750,141.12
Productionphysicalassets
Oil&gasassets
Userightassets9,221,189.37
Intangibleassets48,635,160.0036,048,978.91
Developmentexpenses
Goodwill
Long-germexpensestobeamortized5,387,295.942,876,561.53
Deferredincometaxasset3,708,596.785,243,425.26
Othernon-currentasset84,560,280.09143,307,689.66
Totalofnon-currentassets3,103,660,684.772,759,170,681.95
Totalofassets5,496,647,107.834,969,547,552.23
Currentliabilities
Short-termloans37,575,113.83
LoanfromCentralBank
Borrowingfunds
Transactionalfinancialliabilities
Derivativefinancialliabilities
Notespayable16,682,324.12
Accountpayable283,643,842.23329,468,601.90
Advancereceipts1,805,311.573,542,394.33
Contractliabilities68,955.21279,631.27
Sellingofrepurchasedfinancialassets
Deposittakingandinterbankdeposit
Entrustedtradingofsecurities
Entrustedsellingofsecurities
Employees’wagepayable59,719,860.2455,642,549.53
Taxpayable9,200,627.0912,198,522.02
Otheraccountpayable201,317,421.35156,118,440.42
Including:Interestpayable
Dividendpayable
Feesandcommissionspayable
Reinsurancefeepayable
Liabilitiesheldforsales
Non-currentliabilityduewithin1year5,175,393.52
Othercurrentliability27,523,903.58
Totalofcurrentliability642,712,752.74557,250,139.47
Non-currentliabilities:
Reservefundforinsurancecontracts
Long-termloan683,016,243.25343,100,174.35
Bondpayable
Including:preferredstock
Sustainabledebt
Leaseliability4,243,855.71
Long-termpayable
Long-termremunerationpayabletostaff
Expectedliabilities30,741,055.00
Deferredincome110,461,293.15110,740,322.21
Deferredincometaxliability61,642,660.9159,141,666.58
Othernon-currentliabilities
Totalnon-currentliabilities890,105,108.02512,982,163.14
Totalofliability1,532,817,860.761,070,232,302.61
Owners’equity
Sharecapital506,521,849.00507,772,279.00
Otherequityinstruments
Including:preferredstock
Sustainabledebt
Capitalreserves1,961,599,824.631,967,514,358.53
Less:Sharesinstock7,525,438.20
Othercomprehensiveincome119,682,119.05116,605,932.42
Specialreserve
Surplusreserves98,245,845.4794,954,652.14
Commonriskprovision
Retainedprofit130,746,251.7486,912,390.50
Totalofowner’sequitybelongtotheparentcompany2,816,795,889.892,766,234,174.39
Minorityshareholders’equity1,147,033,357.181,133,081,075.23
Totalofowners’equity3,963,829,247.073,899,315,249.62
Totalofliabilitiesandowners’equity5,496,647,107.834,969,547,552.23

LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork:HeFeiPerson-in-chargeoftheaccountingorgan:ZhuJingjing

(2)ParentCompanyBalanceSheet

InRMB

ItemsDecember31,2021December31,2020
Currentasset:
Monetaryfund130,270,313.58113,560,327.21
Transactionalfinancialassets586,540,735.16514,277,000.82
Derivativefinancialassets
Notereceivable
Accountreceivable7,935,911.241,461,400.20
Financingofreceivables
Prepayments18,706.17
Otheraccountreceivable14,383,631.687,450,934.40
Including:Interestreceivable
Dividendreceivable
Inventories39,131.608,808.00
Contractassets
Assetsheldforsales
Non-currentassetduewithin1year
Othercurrentasset
Totalofcurrentassets739,169,723.26636,777,176.80
Non-currentassets:
Creditor'srightinvestment
Othercreditor'srightinvestment
Long-termreceivable
Longtermshareequityinvestment2,089,070,531.862,103,977,343.32
Otherequityinstrumentsinvestment169,974,388.84177,142,433.45
Othernon-currentfinancialassets
Realestateinvestment98,174,132.57101,644,481.93
Fixedassets20,255,108.5621,876,099.34
Constructioninprogress
Productionphysicalassets
Oil&gasassets
Userightassets
Intangibleassets454,036.00492,923.62
Developmentexpenses
Goodwill
Long-germexpensestobeamortized
Deferredincometaxasset3,672,545.575,097,360.00
Othernon-currentasset55,790,497.2396,871,196.43
Totalofnon-currentassets2,437,391,240.632,507,101,838.09
Totalofassets3,176,560,963.893,143,879,014.89
Currentliabilities
Short-termloans
Transactionalfinancialliabilities
Derivativefinancialliabilities
Notespayable
Accountpayable411,743.57411,743.57
Advancereceipts639,024.582,875,936.58
Contractliabilities
Employees’wagepayable16,712,946.9614,824,723.81
Taxpayable1,943,470.4811,497,591.21
Otheraccountpayable116,648,650.3995,023,378.12
Including:Interestpayable
Dividendpayable
Liabilitiesheldforsales
Non-currentliabilityduewithin1year
Othercurrentliability
Totalofcurrentliability136,355,835.98124,633,373.29
Non-currentliabilities:
Long-termloan
Bondpayable
Including:preferredstock
Sustainabledebt
Leaseliability
Long-termpayable
Long-termremunerationpayabletostaff
Expectedliabilities
Deferredincome400,000.00500,000.00
Deferredincometaxliability58,002,800.6956,150,418.06
Othernon-currentliabilities
Totalnon-currentliabilities58,402,800.6956,650,418.06
Totalofliability194,758,636.67181,283,791.35
Owners’equity
Sharecapital506,521,849.00507,772,279.00
Otherequityinstruments
Including:preferredstock
Sustainabledebt
Capitalreserves1,577,392,975.961,583,307,509.86
Less:Sharesinstock7,525,438.20
Othercomprehensiveincome108,762,538.39107,632,186.85
Specialreserve
Surplusreserves98,245,845.4794,954,652.14
Retainedprofit690,879,118.40676,454,033.89
Totalofowners’equity2,981,802,327.222,962,595,223.54
Totalofliabilitiesandowners’equity3,176,560,963.893,143,879,014.89

(3)ConsolidatedIncomestatement

InRMB

ItemsYear2021Year2020
I.Incomefromthekeybusiness2,293,747,892.062,108,964,687.80
Incl:Businessincome2,293,747,892.062,108,964,687.80
Interestincome
Insurancefeeearned
Feeandcommissionreceived
II.Totalbusinesscost2,182,483,548.352,030,833,538.40
Incl:Businesscost1,908,519,413.281,814,298,395.02
Interestexpense
Feeandcommissionpaid
Insurancedischargepayment
Netclaimamountpaid
Netamountofwithdrawalofinsurancecontractreserve
Insurancepolicydividendpaid
Reinsuranceexpenses
Businesstaxandsurcharge10,523,548.097,347,125.65
Salesexpense37,973,336.3928,644,230.87
Administrativeexpense122,088,830.15105,094,934.36
R&Dcosts103,508,764.5367,160,964.22
Financialexpenses-130,344.098,287,888.28
Including:Interestexpense14,306,275.13234,815.67
Interestincome1,655,853.593,702,735.59
Add:Otherincome19,643,379.3329,506,252.69
Investmentgain(“-”forloss)22,663,013.0622,599,670.74
Incl:investmentgainsfromaffiliates33,984.66-3,446,613.86
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome
Gainsfromcurrencyexchange
Netexposurehedgingincome
Changingincomeoffairvalue2,150,943.402,687,518.74
Creditimpairmentloss-4,981,560.53-10,394,533.65
Impairmentlossofassets-83,508,720.33-72,412,477.63
Assetsdisposalincome-597,458.77276,544.73
III.Operationalprofit(“-”forloss)66,633,939.8750,394,125.02
Add:Non-operationalincome21,285,786.641,445,662.38
Less:Non-operatingexpense1,686,263.35138,421.27
IV.Totalprofit(“-”forloss)86,233,463.1651,701,366.13
Less:Incometaxexpenses11,118,796.968,203,720.98
V.Netprofit75,114,666.2043,497,645.15
(I)Classificationbybusinesscontinuity
1.Netcontinuingoperatingprofit75,114,666.2043,497,645.15
2.Terminationofoperatingnetprofit
(II)Classificationbyownership
1.Netprofitattributabletotheownersofparentcompany61,162,384.2537,267,995.74
2.Minorityshareholders’equity13,952,281.956,229,649.41
VI.Netafter-taxofothercomprehensiveincome3,076,186.63-3,131,850.89
Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany.3,076,186.63-3,131,850.89
(I)Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod3,275,250.36-2,815,824.67
1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets
2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.
3.Changesinthefairvalueofinvestmentsinotherequityinstruments3,275,250.36-2,815,824.67
4.Changesinthefairvalueofthecompany’screditrisks
5.Other
(II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss.-199,063.73-316,026.22
1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss.
2.Changesinthefairvalueofinvestmentsinotherdebtobligations
3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets
4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations
5.Reserveforcashflowhedges
6.Translationdifferencesincurrencyfinancialstatements-199,063.73-316,026.22
7.Other
NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity
VII.Totalcomprehensiveincome78,190,852.8340,365,794.26
Totalcomprehensiveincomeattributabletotheowneroftheparentcompany64,238,570.8834,136,144.85
Totalcomprehensiveincomeattributableminorityshareholders13,952,281.956,229,649.41
VIII.Earningspershare
(I)Basicearningspershare0.120.07
(II)Dilutedearningspershare0.120.07

Thecurrentbusinesscombinationundercommoncontrol,thenetprofitsofthecombinedpartybeforeachievednetprofitofRMB0.00,lastperiodthecombinedpartyrealizedRMB0.00.LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork:HeFeiPerson-in-chargeoftheaccountingorgan:ZhuJingjing

(4)IncomestatementoftheParentCompany

InRMB

ItemsYear2021Year2020
I.Incomefromthekeybusiness78,159,686.1961,296,888.21
Incl:Businesscost11,547,944.8810,666,274.44
Businesstaxandsurcharge2,968,080.872,435,257.11
Salesexpense49,682.40
Administrativeexpense45,821,418.4938,680,586.21
R&Dexpense
Financialexpenses283,692.12-1,020,628.37
Including:Interestexpenses645,507.8713,780.96
Interestincome359,182.131,012,329.64
Add:Otherincome602,709.52117,006.72
Investmentgain(“-”forloss)20,409,098.4835,656,479.65
Including:investmentgainsfromaffiliates33,984.66-3,446,613.86
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome
Netexposurehedgingincome
Changingincomeoffairvalue392,767.12
Creditimpairmentloss-710,513.74-799,858.92
Impairmentlossofassets-32,769.22-95,343.40
Assetsdisposalincome-386,933.41286,963.56
II.Operationalprofit(“-”forloss)37,370,459.0646,093,413.55
Add:Non-operationalincome283,354.84562,910.99
Less:Non-operationalexpenses27,244.40
III.Totalprofit(“-”forloss)37,653,813.9046,629,080.14
Less:Incometaxexpenses5,900,206.387,746,152.13
IV.Netprofit31,753,607.5238,882,928.01
1.Netcontinuingoperatingprofit
2.Terminationofoperatingnetprofit31,753,607.5238,882,928.01
V.Netafter-taxofothercomprehensiveincome1,130,351.54-3,131,850.89
(I)Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod1,329,415.27-2,815,824.67
1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets
2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss.
3.Changesinthefairvalueofinvestmentsinotherequityinstruments1,329,415.27-2,815,824.67
4.Changesinthefairvalueofthecompany’screditrisks
5.Other
(II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss-199,063.73-316,026.22
1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss.
2.Changesinthefairvalueofinvestmentsinotherdebtobligations
3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets
4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations
5.Reserveforcashflowhedges
6.Translationdifferencesincurrencyfinancialstatements-199,063.73-316,026.22
7.Other
VI.Totalcomprehensiveincome32,883,959.0635,751,077.12
VII.Earningspershare
(I)Basicearningspershare00
(II)Dilutedearningspershare00

(5)ConsolidatedCashflowstatement

InRMB

ItemsYear2021Year2020
I.Cashflowsfromoperatingactivities
Cashreceivedfromsalesofgoodsorrendingofservices2,335,256,168.541,827,292,276.43
Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany
Netincreaseofloansfromcentralbank
Netincreaseofinter-bankloansfromotherfinancialbodies
Cashreceivedagainstoriginalinsurancecontract
Netcashreceivedfromreinsurancebusiness
Netincreaseofclientdepositandinvestment
Cashreceivedfrominterest,commissionchargeandcommission
Netincreaseofinter-bankfundreceived
Netincreaseofrepurchasingbusiness
Netcashreceivedbyagentinsecuritiestrading
Taxreturned9,423,408.29116,428,895.93
Othercashreceivedfrombusinessoperation88,625,329.53123,408,000.43
Sub-totalofcashinflow2,433,304,906.362,067,129,172.79
Cashpaidforpurchasingofmerchandiseandservices1,860,349,920.781,742,576,211.51
Netincreaseofclienttradeandadvance
Netincreaseofsavingsincentralbankandbrothercompany
Cashpaidfororiginalcontractclaim
Netincreaseinfinancialassetsheldfortradingpurposes
NetincreaseforOutgoingcallloan
Cashpaidforinterest,processingfeeandcommission
Cashpaidtostaffsorpaidforstaffs250,216,599.00181,692,353.93
Taxespaid101,786,653.9643,712,017.07
Othercashpaidforbusinessactivities225,388,712.9797,217,657.52
Sub-totalofcashoutflowfrombusinessactivities2,437,741,886.712,065,198,240.03
Netcashgeneratedfrom/usedinoperatingactivities-4,436,980.351,930,932.76
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving10,817,803.076,437,640.00
Cashreceivedasinvestmentgains14,881,941.032,908,856.94
Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets83,520.002,800,914.39
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits
Otherinvestment-relatedcashreceived1,128,309,484.613,240,861,003.37
Sub-totalofcashinflowduetoinvestmentactivities1,154,092,748.713,253,008,414.70
Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets447,622,193.08564,014,103.94
Cashpaidasinvestment
Netincreaseofloanagainstpledge
Netcashreceivedfromsubsidiariesandotheroperationalunits
Othercashpaidforinvestmentactivities965,000,000.003,008,065,275.20
Sub-totalofcashoutflowduetoinvestmentactivities1,412,622,193.083,572,079,379.14
Netcashflowgeneratedbyinvestment-258,529,444.37-319,070,964.44
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment
Including:Cashreceivedasinvestmentfromminorshareholders
Cashreceivedasloans339,219,000.00342,660,000.00
Otherfinancing–relatedcashreceived
Sub-totalofcashinflowfromfinancingactivities339,219,000.00342,660,000.00
Cashtorepaydebts
Cashpaidasdividend,profit,orinterests38,306,691.133,511,622.58
Including:Dividendandprofitpaidbysubsidiariestominorshareholders
Othercashpaidforfinancingactivities12,638,273.009,344,136.30
Sub-totalofcashoutflowduetofinancingactivities50,944,964.1312,855,758.88
Netcashflowgeneratedbyfinancing288,274,035.87329,804,241.12
IV.Influenceofexchangeratealternationoncashandcashequivalents-1,236,414.38-2,973,560.67
V.Netincreaseofcashandcashequivalents24,071,196.779,690,648.77
Add:balanceofcashandcashequivalentsatthebeginningofterm278,337,236.95268,646,588.18
VI..Balanceofcashandcashequivalentsattheendofterm302,408,433.72278,337,236.95

(6)CashFlowStatementoftheParentCompany

InRMB

ItemsYear2021Year2020
I.Cashflowsfromoperatingactivities
Cashreceivedfromsalesofgoodsorrendingofservices66,467,384.6464,167,036.73
Taxreturned
Othercashreceivedfrombusinessoperation42,417,781.166,524,378.62
Sub-totalofcashinflow108,885,165.8070,691,415.35
Cashpaidforpurchasingofmerchandiseandservices13,344,258.314,462,365.49
Cashpaidtostaffsorpaidforstaffs34,360,990.5627,619,751.65
Taxespaid23,084,768.1834,788,061.46
Othercashpaidforbusinessactivities10,293,028.688,944,859.88
Sub-totalofcashoutflowfrombusinessactivities81,083,045.7375,815,038.48
Netcashgeneratedfrom/usedinoperatingactivities27,802,120.07-5,123,623.13
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving10,817,803.076,437,640.00
Cashreceivedasinvestmentgains11,479,752.941,957,306.47
Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets2,759,267.00
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits
Otherinvestment-relatedcashreceived466,820,636.281,623,459,188.57
Sub-totalofcashinflowduetoinvestmentactivities489,118,192.291,634,613,402.04
Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets2,247,719.062,528,077.97
Cashpaidasinvestment3,555,968.96
Netcashreceivedfromsubsidiariesandotheroperationalunits
Othercashpaidforinvestmentactivities475,000,000.001,530,015,275.20
Sub-totalofcashoutflowduetoinvestmentactivities477,247,719.061,536,099,322.13
Netcashflowgeneratedbyinvestment11,870,473.2398,514,079.91
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment
Cashreceivedasloans
Otherfinancing–relatedashreceived6,545,900.00
Sub-totalofcashinflowfromfinancingactivities6,545,900.00
Cashtorepaydebts
Cashpaidasdividend,profit,orinterests15,176,281.2311,231.64
Othercashpaidforfinancingactivities7,820,298.3014,344,136.30
Sub-totalofcashoutflowduetofinancingactivities22,996,579.5314,355,367.94
Netcashflowgeneratedbyfinancing-22,996,579.53-7,809,467.94
IV.Influenceofexchangeratealternationoncashandcashequivalents
V.Netincreaseofcashandcashequivalents16,676,013.7785,580,988.84
Add:balanceofcashandcashequivalentsatthebeginningofterm113,560,327.2127,979,338.37
VI..Balanceofcashandcashequivalentsattheendofterm130,236,340.98113,560,327.21

(7)ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod

InRMB

ItemsYear2021
Owner’sequityAttributabletotheParentCompanyMinorsharTotalofown
ShareOtherEquityinstrumentCapitalLess:OtherSpecializSurplusCommonRetainedOtherSubtotal
CapitalPreferredstockSustainabledebtOtherreservesSharesinstockComprehensiveIncomeedreservereservesriskprovisionprofiteholders’equityers’equity
I.Balanceattheendoflastyear507,772,279.001,967,514,358.537,525,438.20116,605,932.4294,954,652.1486,912,390.502,766,234,174.391,133,081,075.233,899,315,249.62
Add:Changeofaccountingpolicy
Correctingofpreviouserrors
Mergerofentitiesundercommoncontrol
Other
II.Balanceatthebeginningofcurrentyear507,772,279.001,967,514,358.537,525,438.20116,605,932.4294,954,652.1486,912,390.502,766,234,174.391,133,081,075.233,899,315,249.62
III.Changedinthecurrentyear-1,250,430.00-5,914,533.90-7,525,438.203,076,186.633,291,193.3343,833,861.2450,561,715.5013,952,281.9564,513,997.45
(1)Totalcomprehensiveincome4,234,512.4261,162,384.2565,396,896.6713,952,281.9579,349,178.62
(II)Investmentordecreasingof-1,250,43-5,914,533.9-7,525,438.2360,474.30360,474.30
capitalbyowners0.0000
1.OrdinarySharesinvestedbyshareholders
2.Holdersofotherequityinstrumentsinvestedcapital
3.Amountofsharespaidandaccountedasowners’equity
4.Other-1,250,430.00-5,914,533.90-7,525,438.20360,474.30360,474.30
(III)Profitallotment3,175,360.75-18,371,016.22-15,195,655.47-15,195,655.47
1.Providingofsurplusreserves3,175,360.75-3,175,360.75
2.Providingofcommonriskprovisions
3.Allotmenttotheowners(orshareholders)-15,195,655.47-15,195,655.47-15,195,655.47
4.Other
(IV)Internaltransferringofowners’equity-1,158,325.79115,832.581,042,493.21
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves.
4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings
5.Othercomprehensiveincomecarry-overretainedearnings-1,158,325.79115,832.581,042,493.21
6.Other
(V).Specialreserves
1.Providedthisyear
2.Usedthisterm
(VI)Other
IV.Balanceattheendofthisterm506,521,849.001,961,599,824.63119,682,119.0598,245,845.47130,746,251.742,816,795,889.891,147,033,357.183,963,829,247.07

Amountinlastyear

InRMB

ItemsYear2020
Owner’sequityAttributabletotheParentCompanyMinorshareholders’equityTotalofowners’equity
ShareCapitalOtherEquityinstrumentCapitalreservesLess:SharesinstockOtherComprehensiveIncomeSpecializedreserveSurplusreservesCommonriskprovisionRetainedprofitOtherSubtotal
PreferredstockSustainabledebtOther
I.Balanceattheendoflastyear509,338,429.001,974,922,248.0316,139,003.40119,737,783.3190,596,923.3949,307,764.032,727,764,144.361,126,851,425.823,854,615,570.18
Add:Changeofaccountingpolicy
Correctingofpreviouserrors
Mergerofentitiesundercommoncontrol
Other
II.Balanceatthebeginningofcurrentyear509,338,429.001,974,922,248.0316,139,003.40119,737,783.3190,596,923.3949,307,764.032,727,764,144.361,126,851,425.823,854,615,570.18
III.Changedinthecurrentyear-1,566,150.0-7,407,889.50-8,613,565.20-3,131,850.894,357,728.7537,604,626.4738,470,030.036,229,649.4144,699,679.44
0
(1)Totalcomprehensiveincome1,562,508.5937,267,995.7438,830,504.336,229,649.4145,060,153.74
(II)Investmentordecreasingofcapitalbyowners-1,566,150.00-7,407,889.50-8,613,565.20-360,474.30-360,474.30
1.OrdinarySharesinvestedbyshareholders
2.Holdersofotherequityinstrumentsinvestedcapital
3.Amountofsharespaidandaccountedasowners’equity
4.Other-1,566,150.00-7,407,889.50-8,613,565.20-360,474.30-360,474.30
(III)Profitallotment3,888,292.80-3,888,292.80
1.Providingofsurplusreserves3,888,292.80-3,888,292.80
2.Providingofcommonriskprovisions
3.Allotmenttotheowners(orshareholders)
4.Other
(IV)Internaltransferringofowners’equity-4,694,359.48469,435.954,224,923.53
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves.
4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings
5.Othercomprehensiveincomecarry-overretainedearnings-4,694,359.48469,435.954,224,923.53
6.Other
(V).Special
reserves
1.Providedthisyear
2.Usedthisterm
(VI)Other
IV.Balanceattheendofthisterm507,772,279.001,967,514,358.537,525,438.20116,605,932.4294,954,652.1486,912,390.502,766,234,174.391,133,081,075.233,899,315,249.62

(8)Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiod

InRMB

ItemsYear2021
SharecapitalOtherEquityinstrumentCapitalreservesLess:SharesinstockOtherComprehensiveIncomeSpecializedreserveSurplusreservesRetainedprofitOtherTotalofowners’equity
PreferredstockSustainabledebtOther
I.Balanceattheendoflastyear507,772,279.001,583,307,509.867,525,438.20107,632,186.8594,954,652.14676,454,033.892,962,595,223.54
Add:Changeofaccountingpolicy
Correctingofpreviouserrors
Other
II.Balanceatthebeginningofcurrentyear507,772,279.001,583,307,509.867,525,438.20107,632,186.8594,954,652.14676,454,033.892,962,595,223.54
III.Changed-1,25-5,914,-7,525,1,130,3,291,14,419,207,1
inthecurrentyear0,430.00533.90438.20351.54193.3325,084.5103.68
(I)Totalcomprehensiveincome2,288,677.3331,753,607.5234,042,284.85
(II)Investmentordecreasingofcapitalbyowners-1,250,430.00-5,914,533.90-7,525,438.20360,474.30
1.OrdinarySharesinvestedbyshareholders
2.Holdersofotherequityinstrumentsinvestedcapital
3.Amountofsharespaidandaccountedasowners’equity
4.Other-1,250,430.00-5,914,533.90-7,525,438.20360,474.30
(III)Profitallotment3,175,360.75-18,371,016.22-15,195,655.47
1.Providingofsurplusreserves3,175,360.75-3,175,360.75
2.Allotmenttotheowners(orshareholders)-15,195,655.47-15,195,655.47
3.Other
(IV)Internaltransferringofowners’equity-1,158,325.79115,832.581,042,493.21
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves.
4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings
5.Othercomprehensiveincomecarry-overretainedearnings-1,158,325.79115,832.581,042,493.21
6.Other
(V)Specialreserves
1.Providedthisyear
2.Usedthisterm
(VI)Other
IV.Balanceattheendofthisterm506,521,849.001,577,392,975.96108,762,538.3998,245,845.47690,879,118.402,981,802,327.22

Amountinlastyear

InRMB

ItemsYear2020
ShareCapitalOtherEquityinstrumentCapitalreservesLess:SharesinstockOtherComprehensiveIncomeSpecializedreserveSurplusreservesRetainedprofitOtherTotalofowners’equity
PreferredstockSustainabledebtOther
I.Balanceattheendoflastyear509,338,429.001,589,869,499.3616,139,003.40110,764,037.7490,596,923.39637,234,475.152,921,664,361.24
Add:Changeofaccountingpolicy
Correctingofpreviouserrors
Other
II.Balanceatthebeginningofcurrentyear509,338,429.001,589,869,499.3616,139,003.40110,764,037.7490,596,923.39637,234,475.152,921,664,361.24
III.Changedinthecurrentyear-1,566,150.00-6,561,989.50-8,613,565.20-3,131,850.894,357,728.7539,219,558.7440,930,862.30
(I)Totalcomprehensiveincome1,562,508.5938,882,928.0140,445,436.60
(II)Investmentordecreasingofcapitalbyowners-1,566,150.00-7,407,889.50-8,613,565.20-360,474.30
1.OrdinarySharesinvestedbyshareholders
2.Holdersofotherequityi
nstrumentsinvestedcapital
3.Amountofsharespaidandaccountedasowners’equity
4.Other-1,566,150.00-7,407,889.50-8,613,565.20-360,474.30
(III)Profitallotment3,888,292.80-3,888,292.80
1.Providingofsurplusreserves3,888,292.80-3,888,292.80
2.Allotmenttotheowners(orshareholders)
3.Other
(IV)Internaltransferringofowners’equity-4,694,359.48469,435.954,224,923.53
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplus
reserves.
4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings
5.Othercomprehensiveincomecarry-overretainedearnings-4,694,359.48469,435.954,224,923.53
6.Other
(V)Specialreserves
1.Providedthisyear
2.Usedthisterm
(VI)Other845,900.00845,900.00
IV.Balanceattheendofthisterm507,772,279.001,583,307,509.867,525,438.20107,632,186.8594,954,652.14676,454,033.892,962,595,223.54

III.BasicInformationoftheCompany

ShenzhenTextile(Group)Co.,Ltd.(hereinafterreferredtoas"Company"or"theCompany")isajoint-stockcompanyregisteredinGuangdongProvincewitharegisteredcapitalofRMB506.521849millionandaunifiedsocialcreditcodeof91440300192173749Y.TheCompanyhaspubliclyissuedRMBcommonshares(Ashares)anddomesticlistedforeignshares(Bshares)tothepublicathomeandabroad,andlistedandtradedthem.TheCompanyisheadquarteredaddressare6/F,ShenfangBuilding,No.3HuaqiangRoad.North,FutianDistrict,Shenzhen.ThecompanywaspreviouslytheShenzhenTextileIndustryCompany,onApril13,1994,approvedbytheLetter(1994)No.15issuedbyShenzhenMunicipalPeople'sGovernment,theCompanywasrestructuredandnamedasShenzhenTextile(Group)Co.,Ltd.,AsofDecember31,2021,theCompanyhasissuedatotalof506,521,849.00shares.

TheCompanyhasestablishedthecorporategovernancestructureofGeneralMeetingofShareholders,BoardofDirectorsandBoardofSupervisors,andcurrentlyhastheBoardOffice,Office,StrategicDevelopment

Department,OperationandManagementDepartment,FinanceDepartment,AuditDepartment,HumanResourcesDepartmentandotherdepartments.theCompanyismainlyengagedinhigh-techindustryfocusingonR&D,productionandmarketingofpolarizersforliquidcrystaldisplay,managementofpropertiesinbustlingbusinessdistrictsofShenzhenandreservedhigh-classtextileandgarmentbusiness.Thefinancialstatementshavebeenauthorizedforissuanceofthe11stmeetingofthe8thBoardofDirectorsoftheGrouponMarch15,2022.AsofDecember31,2021,Atotalof8subsidiariesoftheCompanyareincludedinthescopeofconsolidation.Fordetails,pleaserefertoSectionXFinancialReport,IX"RightsandInterestsinOtherSubjects".IV.Basisforthepreparationoffinancialstatements

(1)BasisforthepreparationThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinanceanditsapplicationguidelines,interpretationsandotherrelevantprovisions(collectivelyreferredtoasthe"AccountingStandardsforBusinessEnterprises").Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRulesNo.15fortheInformationDisclosureandCompilationofCompaniesOfferingSecuritiesPublicIssuance-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.

TheaccountingoftheCompanyisbasedonaccrualbasis.Exceptforsomefinancialinstruments,thefinancialstatementsarebasedonhistoricalcosts.Incaseofassetimpairment,impairmentprovisionshallbemadeinaccordancewithrelevantregulations.

(2)Continuation

Thisfinancialstatementispresentedonthebasisofgoingconcern.V.ImportantaccountingpoliciesandestimationsSpecificaccountingpoliciesandaccountingestimatestips:

Accordingtoitsownproductionandoperationcharacteristics,theCompanydeterminesthepoliciesofdepreciationoffixedassets,amortizationofintangibleassetsandrevenuerecognition.SeeNoteV.16,,NoteV,19andNoteV.26forspecificaccountingpolicies.

1.StatementoncomplyingwithcorporateaccountingstandardsThisfinancialstatementconformstotherequirementsofAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflectsthecombinationandfinancialstatusoftheCompanyonDecember31,2021,aswellasthecombinationandoperatingresultsandcashflowoftheCompany.

2.FiscalYearTheCompanyadoptstheGregoriancalendaryearcommencingonJanuary1andendingonDecember31asthefiscalyear.

3.Operatingcycle

TheoperatingcycleoftheCompanyis12months.

4.AccountingstandardmoneyTheCompanyanditsdomesticsubsidiariesuseRMBastheirbookkeepingbasecurrency.Theoverseas

subsidiariesoftheCompanydetermineRMBastheirbookkeepingbasecurrencyaccordingtothecurrencyinthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinpreparingthefinancialstatementsisRMB.

5.Accountingprocessmethodofenterpriseconsolidationundersameanddifferentcontrolling.

(1)Enterprisemergerundersamecontrol:

Forbusinesscombinationunderthesamecontrol,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyduringthecombinationshallbemeasuredaccordingtothebookvalueofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies.Thedifferencebetweenthebookvalueofthecombinationconsiderationandthebookvalueofthenetassetsobtainedinthecombinationadjuststhecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.Businesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactions

Inindividualfinancialstatements,theshareofthebookvalueofthenetassetsofthecombinedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyshallbetakenastheinitialinvestmentcostoftheinvestmentonthecombinationdaycalculatedbytheshareholdingratioonthecombinationday;Adjustthecapitalreserveforthedifferencebetweentheinitialinvestmentcostandthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombination.Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.

Intheconsolidatedfinancialstatements,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyinthecombinationshallbemeasuredaccordingtothebookvalueintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies;Thedifferencebetweenthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombinationandthebookvalueofthenetassetsobtainedduringthecombinationwillbeadjustedforcapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.Forthelong-termequityinvestmentheldbythemergingpartybeforeobtainingthecontrolrightofthecombinedparty,therelevantprofitsandlosses,othercomprehensiveincomeandotherchangesinowner'sequityhavebeenrecognizedfromthedateofobtainingtheoriginalequityandthedatewhenthemergingpartyandthecombinedpartyareunderthesamefinalcontroltothecombinationdate,andtheinitialretainedearningsorcurrentprofitsandlossesduringthecomparativereportperiodshallbeoffsetrespectively.

(2)Businesscombinationinvolvingentitiesnotundercommoncontrol

Forbusinesscombinationnotunderthesamecontrol,thecombinationcostreferstotheassetspaid,liabilitiesincurredorassumed,andfairvalueoftheissuedequitysecuritiesinordertogaincontrolovertheacquireeontheacquisitiondate.Ontheacquisitiondate,theacquiredassets,liabilitiesandcontingentliabilitiesoftheacquireearerecognizedatfairvalue.

Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredinthecombinationisrecognizedasgoodwill,andtheaccumulatedimpairmentprovisionisdeductedbycostforsubsequentmeasurement;Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredbytheacquireeinthecombinationshallberecordedintothecurrentprofitsandlossesafterreview.

BusinesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactionsInindividualfinancialstatements,thesumofthebookvalueoftheequityinvestmentheldbytheacquiree

beforetheacquisitiondateandthenewinvestmentcostontheacquisitiondateistakenastheinitialinvestmentcostoftheinvestment.Othercomprehensiveincomerecognizedbytheequityinvestmentheldbeforetheacquisitiondateduetoaccountingbytheequitymethodisnottreatedontheacquisitiondate,andaccountingtreatmentiscarriedoutonthesamebasisasthatoftheinvestee'sdirectdisposalofrelatedassetsorliabilities;Theowner'sequityrecognizedduetothechangeofowner'sequityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbetransferredtothecurrentprofitandlossduringthedisposalperiodwhentheinvestmentisdisposed.Iftheequityinvestmentheldbeforetheacquisitiondateismeasuredbyfairvalue,theaccumulatedchangesinfairvalueoriginallyincludedinothercomprehensiveincomewillbetransferredtothecurrentprofitsandlosseswhenaccountingbycostmethod.

Intheconsolidatedfinancialstatements,theconsolidatedcostisthesumoftheconsiderationpaidontheacquisitiondateandthefairvalueoftheequityoftheacquireeheldbeforetheacquisitiondateontheacquisitiondate.Theequityoftheacquireeheldbeforetheacquisitiondateshallbere-measuredaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentincome;Equityoftheacquireeheldbeforetheacquisitiondateinvolvesothercomprehensiveincome,andotherchangesinowner'sequityareconvertedintocurrentincomeontheacquisitiondate,exceptforothercomprehensiveincomearisingfromtheremeasurementofnetliabilitiesorchangesinnetassetsofthesetincomeplanbytheinvestee.

(3)TreatmentoftransactioncostsinbusinesscombinationIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultation,andotherrelatedmanagementexpensesincurredforbusinesscombinationareincludedinthecurrentprofitsandlosseswhentheyoccur.Transactioncostsofequitysecuritiesordebtsecuritiesissuedascombinationconsiderationareincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.6Compilationmethodofconsolidatedfinancialstatements

(1)Thescopeofconsolidation

Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).

(2)Compilationmethodofconsolidatedfinancialstatements

TheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andarepreparedbytheCompanyaccordingtootherrelevantinformation.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingperiodrequirementsoftheCompanyanditssubsidiariesareconsistent,andmajortransactionsandcurrentbalancesbetweencompaniesareoffset.Duringthereportingperiod,thesubsidiariesandbusinessesincreasedduetothebusinesscombinationunderthesamecontrolshallbedeemedtobeincludedintheconsolidationscopeoftheCompanyfromthedatewhenthey

arecontrolledbytheultimatecontroller,andtheiroperatingresultsandcashflowsfromthedatewhentheyarecontrolledbytheultimatecontrollershallbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowstatementrespectively.Duringthereportingperiod,theincome,expensesandprofitsofsubsidiariesandbusinessesincreasedfromtheacquisitiondatetotheendofthereportingperiodduetobusinesscombinationnotunderthesamecontrolduringthereportingperiodareincludedintheconsolidatedincomestatement,andtheircashflowsareincludedintheconsolidatedcashflowstatement.Thepartofshareholders'equityofsubsidiariesthatisnotownedbytheCompanyislistedseparatelyasminorityshareholders'equityintheconsolidatedbalancesheet;Theshareofminorityshareholders'equityinthecurrentnetprofitandlossofsubsidiariesislistedas"minorityshareholders'profitandloss"underthenetprofititemintheconsolidatedincomestatement.Ifthelossofsubsidiarysharedbyminorityshareholdersexceedstheshareenjoyedbyminorityshareholdersintheinitialowner'sequityofsuchsubsidiary,thebalancestilloffsetsminorityshareholders'equity.

(3)Acquisitionofminorityshareholders'equityofsubsidiariesThecapitalreserveintheconsolidatedbalancesheetshallbeadjustedforthedifferencebetweenthenewlyacquiredlong-termequityinvestmentcostduetotheacquisitionofminoritysharesandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdate,andthedifferencebetweenthedisposalpriceobtainedfrompartialdisposalofequityinvestmentinsubsidiarieswithoutlosingcontrolandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdatecorrespondingtothedisposaloflong-termequityinvestment.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.

(4)Treatmentoflosingcontroloversubsidiaries

Ifthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityshallbere-measuredaccordingtoitsfairvalueonthedateoflossofcontrol;Thesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueofremainingequity,minusthesumoftheshareoftheoriginalsubsidiary'sbookvalueofnetassetscalculatedcontinuouslyfromtheacquisitiondateandgoodwillcalculatedaccordingtotheoriginalshareholdingratio,andthedifferenceformedisincludedintheinvestmentincomeofthecurrentperiodoflossofcontrol.

Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestmentwillbetransferredtothecurrentprofitsandlosseswhenthecontrolrightislost,exceptforothercomprehensiveincomegeneratedbytheinvestee'sremeasurementofthenetliabilitiesorchangesinnetassetsofthesetincomeplan.

7.JointventurearrangementsclassificationandCo-operationaccountingtreatment

Jointventurearrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.ThejointventurearrangementoftheCompanyisdividedintojointoperationandjointventure.

(1)Jointoperation

JointoperationreferstothejointventurearrangementinwhichtheCompanyisentitledtotheassetsrelatedtothearrangementandbearstheliabilitiesrelatedtothearrangement.

TheCompanyrecognizesthefollowingitemsrelatedtotheshareofinterestsinjointoperation,andcarriesoutaccountingtreatmentinaccordancewiththerelevantaccountingstandardsforbusinessenterprises:

A.Recognizeassetsheldseparatelyandassetsheldjointlyaccordingtotheirshares;B.Recognizetheliabilitiesundertakenseparately,andrecognizetheliabilitiesjointlyundertakenaccording

totheirshares;C.Recognizetheincomegeneratedfromthesaleofitsshareofjointoperatingoutput;D.Recognizetheincomegeneratedbythesaleofoutputfromjointoperationaccordingtotheirshares;E.Recognizetheexpensesincurredseparately,andrecognizetheexpensesincurredinjointoperationaccordingtotheirshares.

(2)JointventureAjointventurereferstoajointventurearrangementinwhichtheCompanyonlyhasrightstothenetassetsofthearrangement.TheCompanyshallcarryoutaccountingtreatmentontheinvestmentofthejointventureinaccordancewiththeprovisionsonaccountingoflong-termequityinvestmentbytheequitymethod.

8.RecognitionStandardofCash&CashEquivalentsCashreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanywithshortterm,strongliquidity,easyconversionintoknowncashandlittleriskofvaluechange.

9.Foreigncurrencytransaction

IncaseofforeigncurrencybusinessoftheCompany,theexchangeratedeterminedbyasystematicandreasonablemethodwhichissimilartothespotexchangerateonthetransactiondateshallbeusedtoconvertitintothebookkeepingbasecurrencyamount.Balancesheetdate:foreigncurrencymonetaryitemsshallbeconvertedatthespotexchangerateonthebalancesheetdate.Exchangedifferencesarisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateareincludedinthecurrentprofitsandlosses;Forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thespotexchangerateonthetransactiondateisstilladopted;Foreigncurrencynon-monetaryitemsmeasuredatfairvalueareconvertedatthespotexchangerateonthefairvaluedeterminationdate,andthedifferencebetweentheconvertedbookkeepingbasecurrencyamountandtheoriginalbookkeeping,Accordingtothenatureofnon-monetaryitems,itisincludedincurrentprofitsandlossesorothercomprehensiveincome.

10.Financialinstruments

Financialinstrumentsrefertocontractsthatformfinancialassetsofonepartyandfinancialliabilitiesorequityinstrumentsofotherparties.

(1)RecognitionandderecognitionoffinancialinstrumentsWhentheCompanybecomesapartytoafinancialinstrumentcontract,afinancialassetorfinancialliabilityisrecognized.

Financialassetsthatmeetoneofthefollowingconditionsshallbederecognized:

①Terminationofthecontractualrighttoreceivecashflowfromthefinancialasset;

②Thefinancialassethasbeentransferredandthefollowingconditionsforderecognitionoffinancialassettransferaremet.Ifallorpartofthecurrentobligationsofafinancialliabilityhavebeendischarged,thefinancialliabilityorpartofitshallbederecognized.IftheCompany(debtor)signsanagreementwiththecreditortoreplacetheexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheexistingfinancialliabilities,theexistingfinancialliabilitiesshallbe

derecognizedandthenewfinancialliabilitiesshallberecognizedatthesametime.

Whentradingthefinancialassetsinaconventionalway,accountingrecognitionandderecognitionshallbecarriedoutaccordingtothetradingday.

(2)Classificationandmeasurementoffinancialassets

Accordingtothebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsintothefollowingthreecategories:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Financialassetsmeasuredatamortizedcost

TheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatamortizedcost:

?TheCompany'sbusinessmodelofmanagingsuchfinancialassetsistocollectcontractcashflowasthegoal;?Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythe

paymentofprincipalandinterestbasedontheunpaidprincipalamount.?Afterinitialrecognition,suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestrate

method.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofany

hedgingrelationshipareincludedincurrentprofitsandlosseswhenderecognition,amortizationaccordingto

theeffectiveinterestratemethod,orimpairmentrecognition.

Financialassetsmeasuredatfairvalueandchangesincludedinothercomprehensiveincome

TheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome:

?Thecompany'sbusinessmodelofmanagingthefinancialassetsaimsatbothcollectingcontractcashflow

andsellingthefinancialassets;?Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythe

paymentofprincipalandinterestbasedontheunpaidprincipalamount.

Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Interest,impairment

lossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestratemethodareincludedin

thecurrentprofitsandlosses,whileothergainsorlossesareincludedinothercomprehensiveincome.Upon

terminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensive

incomeshallbetransferredoutofothercomprehensiveincomeandincludedincurrentprofitsandlosses.

Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses

Exceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,theCompanyirrevocablydesignatedsomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvaluewithchangesincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.

Afterinitialrecognition,thefinancialassetsaresubsequentlymeasuredatfairvalue,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedinthecurrentprofitsandlosses,unlessthefinancialassetsarepartofthehedgingrelationship.

However,fornon-tradingequityinstrumentinvestments,theCompanycanirrevocablydesignatethemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeuponinitialrecognition.Thedesignationismadeonthebasisofasingleinvestment,andtherelevantinvestmentconformstothedefinitionofequityinstrumentsfromtheperspectiveoftheissuer.

Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Dividendincomethatmeetstherequirementsisincludedinprofitorloss,andothergainsorlossesandchangesinfairvalueareincludedinothercomprehensiveincome.Uponterminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomeshallbetransferredoutofothercomprehensiveincomeandincludedinretainedincome.

ThebusinessmodelofmanagingfinancialassetreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowoffinancialassetsmanagedbytheCompanycomesfromcontractcashflow,saleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelofmanagingfinancialassetsbasedonobjectivefactsandspecificbusinessobjectivesofmanagingfinancialassetsdecidedbykeymanagementpersonnel.

TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbyrelatedfinancialassetsonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.Where,theprincipalreferstothefairvalueoffinancialassetsatinitialrecognition;Interestincludesconsiderationforthetimevalueofmoney,creditriskrelatedtotheunpaidprincipalamountinaspecificperiod,andotherbasicborrowingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontractclausesthatmaycausechangesinthetimedistributionoramountofcashflowoffinancialassetscontractstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractcashflowcharacteristics.

OnlywhentheCompanychangesitsbusinessmodelformanagingfinancialassets,allaffectedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthebusinessmodelchanges,otherwise,financialassetsshallnotbereclassifiedafterinitialrecognition.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalue,whosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses;Forothertypesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.AccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponentsareinitiallyrecognizedbytheCompanyinaccordancewiththeamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceive.

(3)Classificationandmeasurementoffinancialliabilities

Atinitialrecognition,thefinancialliabilitiesoftheCompanyareclassifiedinto:financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,relevanttransactioncostsareincludedintheirinitialrecognitionamount.Financialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses

Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedatfairvalueatinitialrecognitionwithchangesincludedincurrentprofitsandlosses.Suchfinancialliabilitiesaresubsequentlymeasuredaccordingtofairvalue,andthegainsorlossescausedbychangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesareincludedincurrentprofitsandlosses..Financialliabilitiesmeasuredinamortizedcost

Otherfinancialliabilitiesaresubsequentlymeasuredaccordingtotheamortizedcostbytheeffectiveinterestratemethod,andthegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:

①Contractobligationtodelivercashorotherfinancialassetstootherparties.

②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentialunfavorableconditions.

③Non-derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,forwhichtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothiscontract.

④Derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,exceptforderivativecontractsthatexchangeafixedamountofitsownequityinstrumentsforafixedamountofcashorotherfinancialassets.

Equityinstrumentsrefertocontractsthatcanproveownershipofanenterprise'sresidualequityinassetsafterdeductingallliabilities.

IftheCompanycan'tunconditionallyavoiddeliveringcashorotherfinancialassetstofulfillacontractualobligation,thecontractualobligationmeetsthedefinitionoffinancialliabilities.

IfafinancialinstrumentneedstobesettledorcanbesettledbytheCompany'sownequityinstrument,itshallbeconsideredwhetheritsownequityinstrumentusedtosettletheinstrumentisasubstituteforcashorotherfinancialassets,oritistoenabletheholderofsuchinstrumenttobeentitledtotheremainingequityintheassetsafterallliabilitiesaredeductedbytheissuer.Intheformercase,theinstrumentisthefinancialliabilityoftheCompany;Inthelattercase,theinstrumentistheequityinstrumentoftheCompany.

(4)DerivativefinancialinstrumentsandembeddedderivativeinstrumentsInitially,itismeasuredatthefairvalueonthedaywhenthederivativetransactioncontractissigned,andthenmeasuredatitsfairvalue.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareregardedasanliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotmeettherequirementsofhedgeaccountingaredirectlyincludedinthecurrentprofitsandlosses.Formixedinstrumentsincludingembeddedderivative,ifthemaincontractisfinancialassets,therelevantprovisionsoffinancialassetclassificationshallapplytothemixedinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthemixedinstrumentisnotmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlossesforaccountingtreatment,theembeddedderivativeisnotcloselyrelatedtothemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivative,andiftheindependentinstrumentmeetsthedefinitionofderivative,theembeddedderivativeissplitfromthemixedinstrumentandtreatedasaseparatederivativefinancialinstrument.Iftheembeddedderivativecannotbeseparatelymeasuredatthetimeofacquisitionoronthesubsequentbalancesheetdate,themixedinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses.

(5)Fairvalueoffinancialinstruments

SeeNoteIII.11forthedeterminationmethodofthefairvalueoffinancialassetsandfinancialliabilities.

(6)Impairmentoffinancialassets

Basedontheexpectedcreditloss,theCompanywillcarryoutimpairmentaccountingtreatmentonthe

followingitemsandrecognizethelossreserve:

①Financialassetsmeasuredatamortizedcost;

②Receivablesanddebtinvestmentsmeasuredatfairvalueandincludedinothercomprehensiveincome;

③Leasereceivables;

④Financialguaranteecontracts(exceptthosewhicharemeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,inwhichthetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,orthoseformedbycontinuingtoinvolvethetransferredfinancialassets).Measurementofexpectedcreditloss

Expectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenthecashflowofallcontractsdiscountedaccordingtotheoriginalrealinterestrateandtheexpectedcashflowofallcontractsreceivableaccordingtothecontract,thatis,thepresentvalueofallcashshortages.TheCompanytakesintoaccountreasonableandreliableinformationonhistoricalevents,currentsituationandfutureeconomicsituationforecasts,andusestheriskofdefaultastheweighttocalculatetheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceivedtorecognizetheexpectedcreditloss.

TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;Ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration;Ifafinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.Theexpectedcreditlossinthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsinthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythefinancialinstrumentdefaulteventthatmayoccurwithin12monthsafterthebalancesheetdate(orwithintheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months),whichisapartoftheexpectedcreditlossinthewholeduration.

Whenmeasuringtheexpectedcreditloss,thelongestperiodthattheCompanyneedstoconsideristhelongestcontractperiodduringwhichtheenterpriseissubjecttocreditrisk(includingtheoptiontorenewthecontract).

Forfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk,theCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheactualinterestrate.Forfinancialinstrumentsinthethirdstage,theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheactualinterestrate.

Fornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.

Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditrisk

characteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:

A.NotesreceivableNotesreceivableportfolio1:bankacceptancebillNotesreceivableportfolio2:commercialacceptancebillB.AccountsreceivableAccountsreceivableportfolio1:polarizersalesreceivableAccountsreceivableportfolio2:textileandgarmentsalesreceivableAccountsreceivableportfolio3:operatingfundsreceivablefromself-ownpropertyAccountsreceivableportfolio4:otherreceivablesFornotesreceivabledividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperience,andcalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateofthewholedurationbasedonthecurrentsituationandforecaststhefutureeconomicsituation.

Foraccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.Otherreceivables

TheCompanyclassifiesotherreceivablesintoseveralcombinationsaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossesbasedontheportfolios.Thebasisfordeterminingtheportfolioisasfollows:

Otherreceivablesportfolio:agingportfolioForotherreceivablesclassifiedasportfolios,theCompanycalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateinthenext12monthsorthewholeduration.Debtinvestmentandotherdebtinvestment

Forcreditor'srightsinvestmentandothercreditor'srightsinvestment,theCompanycalculatestheexpectedcreditlossaccordingtothenatureoftheinvestment,thecounterpartyandvarioustypesofriskexposureandbasedontheexpectedcreditlossrateinthenext12monthsorthewholeduration.Evaluationofsignificantincreaseincreditrisk

Bycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate,theCompanydeterminestherelativechangeofdefaultriskoffinancialinstrumentsintheexpectedduration,andevaluateswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.

Whendeterminingwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition,thecompanyconsiderstoobtainreasonableandreliableinformationwithoutunnecessaryextracostsorefforts,includingforward-lookinginformation.InformationconsideredbytheCompanyincludes:

?Thedebtorfailstopaytheprincipalandinterestaccordingtotheexpirationdateofthecontract;?Seriousdeteriorationofexternalorinternalcreditrating(ifany)offinancialinstrumentsthathasoccurredorisexpected;?Seriousdeteriorationofthedebtor'soperatingresultsthathasoccurredorisexpected;?Changesinexistingorexpectedtechnology,market,economicorlegalenvironment,andsignificantadverseeffectsonthedebtor'srepaymentabilityoftheCompany.

Accordingtothenatureoffinancialinstruments,theCompanyassesseswhethercreditriskshaveincreasedsignificantlyonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Whenevaluatingonthebasisoffinancialinstrumentportfolio,theCompanycanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskrating.Financialassetswithcreditimpairment

Onthebalancesheetdate,theCompanyevaluateswhetherthefinancialassetsmeasuredatamortizedcostandthecreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomehavesufferedcreditimpairment.Whenoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetbecomesafinancialassetwithcreditimpairment.Evidenceofcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:

?Theissuerordebtorhasmajorfinancialdifficulties;?Thedebtorviolatesthecontract,suchasdefaultoroverduepaymentofinterestorprincipal;?TheCompanygivesconcessionsthatthedebtorwillnotmakeunderanyothercircumstancesduetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties;?Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;?Thefinancialdifficultiesoftheissuerordebtorcausetheactivemarketofthefinancialassetstodisappear.Presentationofexpectedcreditlossprovision

Inordertoreflectthechangeofcreditriskoffinancialinstrumentsafterinitialrecognition,theCompanyre-measurestheexpectedcreditlossoneachbalancesheetdate,andtheresultingincreaseorreversalamountoflossreserveshallbeincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Forfinancialassetsmeasuredinamortizedcost,thelossreserveshallbeoffsetagainstthebookvalueofthefinancialassetslistedinthebalancesheet;Forcreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincome,whichdoesnotoffsetthebookvalueofthefinancialasset.Cancelafterverification

IftheCompanynolongerreasonablyexpectsthecontractcashflowoffinancialassetstobefullyorpartiallyrecovered,itwilldirectlywritedownthebookbalanceofthefinancialassets.Thiswrite-downconstitutesthederecognitionofrelatedfinancialassets.ItusuallyhappenswhentheCompanydeterminesthatthedebtorhasnoassetsorincomesourcestogenerateenoughcashflowtorepaytheamounttobewrittendown.However,accordingtotheCompany'sproceduresforrecoveringthedueamount,thewritten-downfinancialassetsmaystillbeaffectedbytheimplementationactivities.

Ifthewritten-downfinancialassetsarerecoveredlater,theywillbeincludedinprofitsandlossesofthecurrentrecoveryperiodasthereversalofimpairmentlosses.

(7)TransferoffinancialassetsTransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialassets.

Ifthecompanyhastransferredalmostallrisksandrewardsintheownershipofthefinancialassettothetransferee,therecognitionofthefinancialassetshallbeterminated;Ifalmostallrisksandrewardsontheownershipofafinancialassetareretained,thefinancialassetshallnotbederecognized.

IftheCompanyhasneithertransferrednorretainedalmostallrisksandrewardsintheownershipoffinancialassets,itshallbedealtwithasfollows:ifthecontrolofthefinancialassetsisabandoned,thefinancialassetsshallbederecognizedandtheresultingassetsandliabilitiesshallberecognized;Ifthecontrolofthefinancialassetsis

notabandoned,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.

(8)OffsetoffinancialassetsandfinancialliabilitiesWhentheCompanyhasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilities,whichcanbeenforcedatpresent,andtheCompanyplanstosettlebynetamountoratthesametimerealizesuchfinancialassetsandpayoffsuchfinancialliabilities,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetwiththeamountafteroffset.Inaddition,financialassetsandfinancialliabilitiesarelistedseparatelyinthebalancesheetandwillnotbeoffsetagainsteachother.

11.NotesreceivableFornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditriskcharacteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:

Notesreceivableportfolio1:bankacceptancebillNotesreceivableportfolio2:commercialacceptancebillFornotesreceivabledividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperience,andcalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateofthewholedurationbasedonthecurrentsituationandforecaststhefutureeconomicsituation.

12.Accountsreceivable

Fornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancingcomponent,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditriskcharacteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:

Accountsreceivableportfolio1:polarizersalesreceivableAccountsreceivableportfolio2:textileandgarmentsalesreceivableAccountsreceivableportfolio3:operatingfundsreceivablefromself-ownpropertyAccountsreceivableportfolio4:otherreceivablesForaccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.

13.Receivablefinancing

Forbillsreceivableandaccountsreceivableclassifiedasthosemeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theportionwithself-financingperiodwithinoneyear(includingone

year)islistedasreceivablesfinancing;Iftheperiodofself-acceptanceismorethanoneyear,itshallbelistedasothercreditor'srightsinvestment.Forrelevantaccountingpolicies,pleaserefertoNoteV,(10)"FinancialInstruments"andNoteV,(10)"ImpairmentofFinancialinstruments".

14.OtheraccountreceivableDeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivablesTheCompanydividestheotherreceivablesintoseveralportfolioaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossesonthebasisofdeterminingtheportfolioasfollows:

Otherreceivablesportfolio:ageportfolio:

Foraccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.

15.Inventory

1.InvestoriesclassTheCompany'sinventoryincludesrawmaterials,in-processproducts,low-valueconsumables,packagingmaterials,inventorygoods,andissuedgoods.

(2)PricingmethodofissuedinventoryTheCompany'sinventoryispricedattheactualcostwhenitisacquired.Theweightedaveragemethodisadoptedwhenrawmaterialsandinventorygoodsareissued.

(3)DeterminationbasisofnetrealizablevalueofinventoryandaccrualmethodofinventorydepreciationreserveThenetrealizablevalueofinventoryistheestimatedsellingpriceofinventoryminustheestimatedcoststobeincurreduponcompletion,estimatedsalesexpensesandrelatedtaxes.Fordeterminationofthenetrealizablevalueofinventories,thesolidevidenceshallserveasthebasis,andthepurposeofholdinginventoriesandtheinfluenceofeventsafterthebalancesheetdateshallbeconsidered.Onthebalancesheetdate,iftheinventorycostishigherthanitsnetrealizablevalue,inventorydepreciationreserveshallbemade.TheCompanyusuallyaccruestheinventorydepreciationreserveaccordingtoindividualinventoryitems.Onthebalancesheetdate,iftheinfluencingfactorsofpreviousinventoryvaluewrittendownhavedisappeared,theinventorydepreciationreservewillbereturnedwithintheoriginallyaccruedamount.

(4)InventorysystemofinventoryPerpetualinventorysystemisadoptedfortheCompany'sinventorysystem.

(5)Amortizationmethodoflow-valueconsumablesandpackagingmaterialsLow-valueconsumablesandpackagingmaterialsoftheCompanyareamortizedbyone-timewrite-offmethod.

16.ContractassetsTheCompanyliststhecustomer'sunpaidcontractconsiderationforwhichtheCompanyhasfulfilleditsperformanceobligationsaccordingtothecontract,andwhichisnottherighttocollectmoneyfromcustomersunconditionally(thatis,onlydependingonthepassageoftime)asacontractassetinthebalancesheet.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunder

differentcontractsarenotoffset.

17.ContractCostsContractcostsincludeincrementalcostsincurredforobtainingcontractsandcontractperformancecosts.TheincrementalcostincurredforobtainingthecontractreferstothecostthattheCompanywillnotincurwithoutobtainingthecontract(suchassalescommission,etc.).Ifthecostisexpectedtoberecovered,theCompanywillrecognizeitasthecontractacquisitioncostasanasset.OtherexpensesincurredbytheCompanytoobtainthecontractexcepttheincrementalcostexpectedtoberecoveredareincludedinthecurrentprofitsandlosseswhenincurred.

Ifthecostincurredfortheperformanceofthecontractdoesnotfallwithinthescopeofotheraccountingstandardsforenterprisessuchasinventoryandmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasthecontractperformancecostasanasset:

①Suchcostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredonlyduetothiscontract;

②SuchcostincreasestheresourcesoftheCompanyforfulfillingitsperformanceobligationsinthefuture;

③Thecostisexpectedtoberecovered.

Assetsrecognizedbycontractacquisitioncostandassetsrecognizedbycontractperformancecost(hereinafterreferredtoas"AssetsRelatedtoContractCost")shallbeamortizedonthesamebasisastherevenuerecognitionofgoodsorservicesrelatedtotheassets,andshallbeincludedincurrentprofitsandlosses.

Whenthebookvalueoftheassetsrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanywillaccrueimpairmentprovisionoftheexcessandrecognizeitastheassetimpairmentloss:

①TheremainingconsiderationexpectedtobeobtainedbytheCompanyduetothetransferofgoodsorservicesrelatedtotheasset;

②Theestimatedcosttobeincurredfortransferringtherelatedgoodsorservices.

Thecontractperformancecostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognition,whichshallbelistedin"Inventory",andtheamortizationperiodformorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognitionshallbelistedin"OtherNon-currentAssets".

Thecontractacquisitioncostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatinitialrecognition,andshallbelistedin"OtherCurrentAssets".Theamortizationperiodforinitialrecognitionshallexceedoneyearoronenormalbusinesscycle,andshallbelistedin"OtherNon-currentAssets".

18.Held-for-saleassets

(1)Classificationandmeasurementofnon-currentassetsordisposalgroupsheldforsaleWhenthebookvalueofanon-currentassetordisposalgroupisrecoveredbytheCompanymainlybysellingit(includingtheexchangeofnon-monetaryassetswithcommercialnation)ratherthancontinuouslyusingit,thenon-currentassetordisposalgroupisclassifiedasheldforsale.Theabove-mentionednon-currentassetsdonotincludeinvestmentrealestatemeasuredbyfairvaluemodel,biologicalassetsmeasuredbynetamountoffairvalueminussellingexpenses,assetsformedbyemployeecompensation,financialassets,deferredincometaxassetsandrightsarisingfrominsurancecontracts.

Thedisposalgroupreferstoagroupofassetsdisposedoftogetherbysaleorothermeansinatransactionasawhole,andliabilitiesdirectlyrelatedtotheseassetstransferredinthetransaction.Undercertaincircumstances,thedisposalgroupincludesgoodwillobtainedinbusinesscombination,etc.Meanwhile,non-currentassetsordisposalgroupsthatmeetthefollowingconditionsareclassifiedasheld-for-sale:accordingtothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thenon-currentassetsordisposalgroupscanbesoldimmediatelyunderthecurrentsituation;Thesaleisverylikelytohappen,thatis,aresolutionhasbeenmadeonasaleplanandacertainpurchasecommitmenthasbeenobtained,anditisexpectedthatthesalewillbecompletedwithinoneyear.Ifthecontroloversubsidiariesislostduetothesaleofinvestmentsinsubsidiaries,whetherornottheCompanyretainspartoftheequityinvestmentsafterthesale,whentheinvestmentinsubsidiariestobesoldmeetstheclassificationconditionsofholdingforsale,theinvestmentinsubsidiarieswillbeclassifiedasheld-for-saleasawholeinindividualfinancialstatements,andallassetsandliabilitiesofsubsidiarieswillbeclassifiedasheld-for-saleinconsolidatedfinancialstatements.

Whenthenon-currentassetsordisposalgroupsheldforsaleareinitiallymeasuredorre-measuredonthebalancesheetdate,thedifferencebetweenthebookvalueandthenetamountafterdeductionofthesalesexpensesfromthefairvalueisrecognizedastheassetimpairmentloss.Fortheamountofassetimpairmentlossrecognizedbythedisposalgroupheldforsale,thebookvalueofgoodwillinthedisposalgroupisoffsetfirst,andthenthebookvalueofnon-currentassetsinthedisposalgroupisoffsetproportionally.

Ifthenetamountofnon-currentassetsheldforsaleordisposalgroup'sfairvalueminussalesexpensesincreasesonthesubsequentbalancesheetdate,thepreviouslywritten-downamountwillberestoredandreversedwithintheamountofassetimpairmentlossrecognizedafterbeingclassifiedasheld-for-sale,andthereversedamountwillbeincludedinthecurrentprofitsandlosses.Thebookvalueofoffsetgoodwillshallnotbereversed.

Non-currentassetsheldforsaleandassetsindisposalgroupheldforsalearenotdepreciatedoramortized;Interestandotherexpensesofliabilitiesindisposalgroupheldforsalecontinuetoberecognized.Allorpartoftheinvestmentsofassociatedenterprisesorjointventuresclassifiedasheldforsaleshallbeaccountedforbytheequitymethodforthoseclassifiedasheldforsale,whilethoseretained(notclassifiedasheldforsale)shallcontinuetobeaccountedforbytheequitymethod;WhentheCompanylosessignificantinfluenceontheassociatedenterprisesandjointventuresduetothesale,itshallstopusingtheequitymethod.

Ifacertainnon-currentassetordisposalgroupisclassifiedasheld-for-sale,buttheclassificationconditionsofheld-for-salearenolongermet,theCompanywillstopclassifyingitasheld-for-saleandmeasureitaccordingtothelowerofthefollowingtwoamounts:

①Thebookvalueoftheassetordisposalgroupbeforeitisclassifiedasheld-for-sale,andtheamountadjustedaccordingtothedepreciation,amortizationorimpairmentthatshouldhavebeenrecognizedwithoutbeingclassifiedasheld-for-sale;

②Recoverableamount.

19.Creditor'srightsinvestment

Creditor'srightsinvestmentmainlyaccountsforbondinvestmentmeasuredbyamortizedcost,etc.TheCompanyhasmeasuredtheimpairmentlossbasedontheamountofexpectedcreditlossesinthenext12monthsortheentireduration,basedonwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.

20.OtherCreditor'srightsinvestmentForcreditor'srightsinvestmentandothercreditor'srightsinvestment,theCompanycalculatestheexpectedcreditlossaccordingtothenatureoftheinvestment,thecounterpartyandvarioustypesofriskexposureandbasedontheexpectedcreditlossrateinthenext12monthsorthewholeduration.

21.Long-termaccountreceivableNone

22.Long-termequityinvestmentsLong-termequityinvestmentincludesequityinvestmentinsubsidiaries,jointventuresandassociatedenterprises.IftheCompanycanexertsignificantinfluenceontheinvestee,itisanassociatedenterpriseoftheCompany.

(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentformingbusinesscombination:thelong-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrolshallbetakenastheinvestmentcostaccordingtothebookvalueshareoftheowner'sequityofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate;Long-termequityinvestmentobtainedbybusinesscombinationnotunderthesamecontrolshallberegardedastheinvestmentcostoflong-termequityinvestmentaccordingtothecombinationcost.Forlong-termequityinvestmentobtainedbyothermeans:Forlong-termequityinvestmentobtainedbypaymentincash,theactualpurchasepriceistakenastheinitialinvestmentcost;Forlong-termequityinvestmentobtainedbyissuingequitysecurities,thefairvalueofissuingequitysecuritiesistakenastheinitialinvestmentcost.

(2)SubsequentmeasurementandprofitandlossrecognitionmethodInvestmentinsubsidiariesshallbeaccountedbycostmethod,unlesstheinvestmentmeetstheconditionsofholdingforsale;Investmentinassociatedenterprisesandjointventuresshallbeaccountedforbyequitymethod.Forthelong-termequityinvestmentcalculatedbythecostmethod,exceptforthecashdividendsorprofitsthathavebeendeclaredbutnotyetissuedandthatincludedintheactualpaymentorconsideration,thecashdividendsorprofitsdeclaredanddistributedbytheinvesteearerecognizedasinvestmentincomeandincludedinthecurrentprofitsandlosses.

Iftheinitialinvestmentcostoflong-termequityinvestmentaccountedbyequitymethodisgreaterthanthefairvalueshareofidentifiablenetassetsoftheinvestee,theinvestmentcostoflong-termequityinvestmentshallnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteeatthetimeofinvestment,thebookvalueofthelong-termequityinvestmentshallbeadjusted,andthedifferenceshallbeincludedintheprofitandlossofthecurrentinvestmentperiod.

Incaseofaccountingbyequitymethod,theinvestmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofnetprofitsandlossesandothercomprehensiveincomerealizedbytheinvestee,andthebookvalueoflong-termequityinvestmentisadjustedatthesametime;Accordingtotheprofitorcashdividenddeclaredanddistributedbytheinvestee,theparttobeentitledtoshallbecalculated,andthebookvalueoflong-termequityinvestmentshallbereducedcorrespondingly;Theinvesteeadjuststhebookvalueoflong-termequityinvestmentforotherchangesinowner'sequityexceptnetprofitsandlosses,othercomprehensiveincomeandprofitdistributionandincludesthemincapitalreserve(othercapitalreserve).Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,thefairvalueofidentifiableassetsoftheinvesteeatthetimeofinvestmentistakenasthebasis,andthenetprofitoftheinvesteeisrecognizedafteradjustmentaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.

Ifitcanexertsignificantinfluenceontheinvesteeduetoadditionalinvestmentorimplementjointcontrolbutdoesnotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplusthenewinvestmentcostshallbetakenastheinitialinvestmentcostcalculatedbytheequitymethodinstead.Thedifferencebetweenthefairvalueandbookvalueoftheoriginalequityontheconversiondate,aswellasthe

accumulatedfairvaluechangesoriginallyincludedinothercomprehensiveincome,aretransferredtothecurrentprofitsandlossesaccountedforbytheequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvesteeislostduetothedisposalofsomeequityinvestments,theremainingequityafterdisposalshallbeaccountedforaccordingtoAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsonthedateoflossofjointcontrolorsignificantinfluence,andthedifferencebetweenfairvalueandbookvalueshallbeincludedinthecurrentprofitsandlosses.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheadoptionoftheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvesteewhentheequitymethodisterminated;Changesinotherowners'equityrelatedtotheoriginalequityinvestmentaretransferredintocurrentprofitsandlosses.Ifthecontrolovertheinvesteeislostduetothedisposalofpartofequityinvestment,andtheremainingequityafterdisposalcanjointlycontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotheequitymethodinstead,andtheremainingequityshallberegardedasbeingadjustedbytheequitymethodwhenitisacquired;Iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotherelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolshallbeincludedinthecurrentprofitsandlosses.

IftheCompany'sshareholdingratiodecreasesduetocapitalincreaseofotherinvestors,causinglossofcontrol,butitcanexercisejointcontrolorexertsignificantinfluenceontheinvestee,theshareofnetassetsincreasedbytheinvesteeduetocapitalincreaseandshareexpansionshallberecognizedaccordingtothenewshareholdingratio,andthedifferencebetweentheoriginalbookvalueoflong-termequityinvestmentcorrespondingtothedecreasedshareholdingratioshallbeincludedinthecurrentprofitsandlosses;Then,accordingtothenewshareholdingratio,itisregardedasbeingadjustedbytheequitymethodwhentheinvestmentisobtained.

ForunrealizedinternaltransactiongainsandlossesbetweentheCompanyanditsassociatedenterprisesandjointventures,theportionattributabletotheCompanyshallbecalculatedaccordingtotheshareholdingratio,andinvestmentgainsandlossesshallberecognizedonthebasisofoffset.However,iftheunrealizedinternaltransactionlossesbetweentheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassets,theywillnotbeoffset.

(3)Basisfordeterminationofjointcontrolandsignificantinfluenceontheinvestee

Jointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andtherelevantactivitiesofsucharrangementmustbeunanimouslyagreedbytheparticipantswhosharethecontrolrightsbeforeanydecisionismade.Whenjudgingwhetherthereiscommoncontrol,firstly,judgewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondly,judgewhetherthedecision-makingofactivitiesrelatedtothearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.Ifallparticipantsoragroupofparticipantsmustactinconcerttodecidetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoragroupofparticipantscollectivelycontrolthearrangement;Iftwoormoreparticipantscancollectivelycontrolanarrangement,itdoesnotconstitutejointcontrol.Whenjudgingwhetheritisjointcontrol,theprotectiverightsentitledtoarenotconsidered.

Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestee,the

influenceofthevotingsharesoftheinvesteedirectlyorindirectlyheldbytheinvestorandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesshallbeconsidered,includingtheinfluenceofthecurrentconvertiblewarrants,shareoptionsandconvertiblecorporatebondsissuedbytheinvestee.

WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestee,itisgenerallyconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcannotparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseitdoesnothaveasignificantinfluence;WhentheCompanyownslessthan20%(excluding)ofthevotingsharesoftheinvestee,itisgenerallynotconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcanparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseithasasignificantinfluence.

(4)Equityinvestmentheldforsale

Ifallorpartoftheequityinvestmentinanassociatedenterpriseorjointventureisclassifiedasassetsheldforsale,pleaserefertoNoteIII.13forrelevantaccountingtreatment.

Fortheremainingequityinvestmentsthatarenotclassifiedasassetsheldforsale,theequitymethodisadoptedforaccountingtreatment.

Iftheequityinvestmentinanassociatedenterpriseorjointventurethathasbeenclassifiedasheldforsalenolongermeetstheclassificationconditionsofassetsheldforsale,theequitymethodshallbeusedforretrospectiveadjustmentfromthedatethatitisclassifiedasassetsheldforsale.

(5)Testmethodforimpairmentandaccrualmethodforimpairmentprovision

Forinvestmentinsubsidiaries,associatedenterprisesandjointventures,pleaserefertoNoteIII.21fortheaccrualmethodforimpairmentprovision.

23.InvestmentrealestateThemeasurementmodeofinvestmentpropertyThecompanyshalladoptthecostmodetomeasuretheinvestmentproperty.DepreciationorAmortizationMethod

Investmentrealestatereferstorealestateheldforrentorcapitalappreciation,orboth.TheCompany'sinvestmentrealestateincludesleasedlanduserights,landuserightstransferredafterholdingandpreparingforappreciation,andleasedbuildings.

TheCompany'sinvestmentrealestateisinitiallymeasuredaccordingtothecostatthetimeofacquisition,anddepreciationoramortizationisaccruedonscheduleaccordingtotherelevantprovisionsoffixedassetsorintangibleassets.

Forinvestmentrealestatethatissubsequentlymeasuredbycostmodel,pleaserefertoNoteIII.21fortheaccrualmethodofassetimpairment.

Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentrealestateafterdeductionofitsbookvalueandrelatedtaxesshallbeincludedinthecurrentprofitsandlosses.

24.Fixedassets

(1)Recognitionconditionsoffixedassets

TheCompany'sfixedassetsrefertotangibleassetsheldfortheproductionofcommodities,provisionoflaborservices,leasingoroperationandmanagement,withaservicelifeexceedingonefiscalyear.Onlywhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheenterpriseandthecostofthefixedassetscan

bemeasuredreliably,canthefixedassetsberecognized.ThefixedassetsoftheCompanyareinitiallymeasuredaccordingtotheactualcostatthetimeofacquisition.SubsequentexpendituresrelatedtofixedassetsareincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheCompanyandthecostcanbemeasuredreliably;Dailyrepairexpensesoffixedassetsthatdonotmeettherequirementsforsubsequentexpendituresofcapitalizationoffixedassetsareincludedinthecurrentprofitsandlossesorthecostofrelatedassetsaccordingtothebeneficiarieswhentheyoccur.Forthereplacedpart,thebookvalueisderecognized.

(2)Themethodfordepreciation

CategoryThemethodfordepreciationExpectedusefullife(Year)EstimatedresidualvalueDepreciation
HouseandBuilding-ProductionStraight-linemethod354.00%2.74%
HouseandBuilding-Non-ProductionStraight-linemethod404.00%2.40%
DecorationofFixedassetsStraight-linemethod1010.00%
MachineryandequipmentStraight-linemethod10-144.00%9.60%-6.86%
TransportationequipmentStraight-linemethod84.00%12.00%
ElectronicequipmentStraight-linemethod84.00%12.00%
OtherequipmentStraight-linemethod84.00%12.00%

Forthefixedassetswiththeimpairmentprovisionwithdrawn,theaccumulativeamountofthewithdrawnfixedassetsimpairmentprovisionshallbealsodeductedtocalculateanddeterminetherateofdepreciation.

(3)Identificationbasis,valuationmethodanddepreciationmethodoffixedassetsleasedbyfinancingNone

25.Constructioninprogress

ThecostofconstructioninprogressoftheCompanyisdeterminedaccordingtotheactualprojectexpenditure,includingallnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachestheintendedusablestate,andotherrelatedexpenses.

Constructioninprogressistransferredtofixedassetswhenitreachesthescheduledusablestate.

SeeNoteIII.21forthemethodofdepreciationofassetsinconstructioninprogress.

26.Borrowingcosts

(1)RecognitionprincipleofcapitalizationofborrowingcostsIftheborrowingcostsincurredbytheCompanycanbedirectlyattributedtothepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions,theywillbecapitalizedandincludedintherelevantassetcosts;Otherborrowingcosts,whenincurred,arerecognizedasexpensesaccordingtotheamountincurred,andincludedincurrentprofitsandlosses.Borrowingcostsshallbecapitalizediftheymeetthefollowingconditionsatthesametime:

①Assetexpenditurehasalreadyoccurred,includingtheexpenditureincurredintheformofpaymentincash,transferofnon-cashassetsorassumptionofinterest-bearingdebtsforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions;

②Borrowingcostshavealreadyoccurred;

③Thepurchase,constructionorproductionactivitiesnecessarytomaketheassetsreachtheintendedusableorsaleablestatehavestarted.

(2)Capitalizationperiodofborrowingcosts

Capitalizationofborrowingcostsshallbestoppedwhenassetseligibleforcapitalizationacquired,constructedorproducedbytheCompanyreachtheintendedusableorsaleablestate.Borrowingcostsincurredaftertheassetsinlinewiththecapitalizationconditionsreachtheintendedusableorsaleablestateshallberecognizedasexpensesaccordingtotheamountincurredwhentheyoccur,andshallbeincludedincurrentprofitsandlosses.

Iftheassetsthatmeetthecapitalizationconditionsareabnormallyinterruptedintheprocessofpurchase,constructionorproduction,andtheinterruptionlastsexceeds3months,thecapitalizationofborrowingcostsshallbesuspended;Borrowingcostsduringnormalinterruptionperiodcontinuetobecapitalized.

(3)Capitalizationrateofborrowingcostsandcalculationmethodofcapitalizationamount

Theinterestexpensesactuallyincurredinthecurrentperiodofspecialborrowingshallbecapitalizedafterdeductingtheinterestincomefromtheunusedborrowingfundsdepositedinthebankortheinvestmentincomefromtemporaryinvestment;Thecapitalizationamountofgeneralborrowingsisdeterminedbymultiplyingtheweightedaverageoftheaccumulatedassetexpenditureoverthespecialloanbythecapitalizationrateoftheoccupiedgeneralborrowings.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaverageinterestrateofgeneralborrowings.

Duringthecapitalizationperiod,alltheexchangedifferencesofspecialborrowingsinforeigncurrencyarecapitalized;Exchangedifferencesofgeneralborrowingsinforeigncurrencyareincludedincurrentprofitsandlosses.

27.BiologicalAssetsNone

28.Oil&GasassetsNone

29.Righttouseassets

(1)Conditionsforrecognizingtheright-to-useassets

TheCompany'sright-to-useassetsreferstotherightoftheCompanyasthelesseetousetheleasedassetsduringtheleaseterm.Onthestartdateoftheleaseterm,theright-to-useassetsisinitiallymeasuredatcost.Thecostincludes:theinitialmeasurementamountofleaseliabilities;Theleasepaymentamountissuedonorbeforethestartdateoftheleaseterm,whereifthereisaleaseincentive,theamountrelatedtotheentitledleaseincentiveshallbededucted;TheinitialdirectexpensesincurredbytheCompanyasthelessee;ThecostexpectedtobeincurredbytheCompanyasthelesseetodismantleandremovetheleasedassets,restorethesitewheretheleasedassetsarelocatedorrestoretheleasedassetstothestateagreedintheleaseterms.TheCompany,asthelessee,recognizesandmeasuresthedemolitionandrestorationcostsinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Subsequentadjustmentsshallbemadetoanyremeasurementofleaseliabilities.

(2)Depreciationmethodofright-to-useassetsTheCompanyadoptsthestraight-linemethodtoaccruedepreciation.IftheCompany,asthelessee,canreasonablydeterminethattheownershipoftheleasedassetsisacquiredattheexpirationoftheleaseterm,depreciationshallbeaccruedwithintheremainingservicelifeoftheleasedassets.Ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetscanbeobtainedattheexpirationoftheleaseterm,depreciationshallbeaccruedduringtheleasetermortheremainingservicelifeoftheleasedassets,whicheverisshorter.SeeNoteV.21fortheimpairmenttestmethodoftheright-to-useassetsandtheprovisionmethodforimpairment.

30.Intangibleassets

(1)Valuationmethod,servicelifeandimpairmenttestTheintangibleassetsoftheCompanyincludelanduserights,proprietarytechnologyandsoftware.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedandjudgedwhentheyareacquired.Iftheservicelifeislimited,theintangibleassetsshallbeamortizedwithintheexpectedservicelifebytheamortizationmethodthatcanreflecttheexpectedrealizationmodeoftheeconomicbenefitsrelatedtotheassetsfromthetimewhentheyareavailableforuse;Ifitisimpossibletoreliablydeterminetheexpectedrealizationmode,theyshallbeamortizedbystraight-linemethod;Intangibleasset\swithuncertainservicelifearenotamortized.Amortizationmethodsofintangibleassetswithlimitedservicelifeareasfollows:

ItemsUsefullife(year)AmortizationmethodNotes
Landuseright50Straight
Specialtechnology15Straight
Software5Straight

Attheendofeachyear,theCompanyrecheckstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife,adjuststheoriginalestimateifitisdifferentfromthepreviousestimate,andhandlesthechangeaccordingtotheaccountingestimate.SeeNoteV.21forthemethodofdepreciationofassetsforIntangibleassets

(2)AccountingPolicyofInternalResearchandDevelopmentExpenditure

TheCompanydividestheexpenditureofinternalresearchanddevelopmentprojectsintoexpendituresin

researchstageandexpendituresindevelopmentstage.Expendituresinresearchstageareincludedincurrentprofitsandlosseswhentheyoccurs.Expendituresindevelopmentstagecanonlybecapitalizediftheymeetthefollowingconditions:itistechnicallyfeasibletocompletetheintangibleassetssothattheycanbeusedorsold;Thereistheintentiontocompletetheintangibleassetsanduseorsellthem;Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingthosethatcanprovetheexistenceofmarketforproductsproducedbytheintangibleassetsortheexistenceofmarketfortheintangibleassetsthemselves,andthatfortheintangibleassetsthatwillbeusedinternally,theirusefulnesscanbeproved;Therearesufficienttechnical,financialandotherresourcestocompletethedevelopmentoftheintangibleassetsandtheabilitytouseorselltheintangibleassets;Expendituresattributabletothedevelopmentstageoftheintangibleassetscanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsareincludedincurrentprofitsandlosses.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftertheaboveconditionsaremetandaprojectisapprovedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Capitalizedexpendituresindevelopmentstagearelistedasdevelopmentexpendituresonthebalancesheet,andareconvertedintointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.

31.Long-termAssetsImpairmentTheassetimpairmentoflong-termequityinvestmentofsubsidiaries,associatedenterprisesandjointventures,investmentrealestate,fixedassets,constructioninprogress,intangibleassets,goodwill,etc.(exceptinventory,investmentrealestatemeasuredaccordingtofairvaluemodel,deferredincometaxassetsandfinancialassets)shallbedeterminedaccordingtothefollowingmethods:

Onthebalancesheetdate,judgewhetherthereisanysignofpossibleimpairmentofassets.Ifthereisanysignofimpairment,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Thegoodwillformedbybusinesscombination,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheusablestatearetestedforimpairmenteveryyearregardlessofwhetherthereisanysignofimpairment.

Therecoverableamountisdeterminedaccordingtothehigherofthenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheestimatedfuturecashflowoftheasset.TheCompanyestimatesitsrecoverableamountonthebasisofindividualassets;Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theidentificationofassetgroupisbasedonwhetherthemaincashinflowgeneratedbyassetgroupisindependentofcashinflowofotherassetsorassetgroups.

Whentherecoverableamountofanassetorassetgroupislowerthanitsbookvalue,theCompanywillwritedownitsbookvaluetotherecoverableamount,andthewritten-downamountwillbeincludedinthecurrentprofitsandlosses,andthecorrespondingassetimpairmentprovisionwillbeaccruedatthesametime.

Asfarastheimpairmenttestofgoodwillisconcerned,thebookvalueofgoodwillformedbybusinesscombinationisamortizedtorelevantassetgroupsaccordingtoareasonablemethodfromtheacquisitiondate;Ifitisdifficulttoamortizetotherelatedassetgroup,itshallbeamortizedtotherelatedassetgroupportfolio.Therelatedassetgrouporassetgroupportfolioisonethatcanbenefitfromthesynergyeffectofbusinesscombination,andisnotlargerthanthereportingsegmentdeterminedbytheCompany.

Intheimpairmenttest,iftherearesignsofimpairmentintheassetgrouporassetgroupportfoliorelatedtogoodwill,firstly,theassetgrouporassetgroupportfoliowithoutgoodwillshallbetestedforimpairment,therecoverableamountshallbecalculated,andthecorrespondingimpairmentlossshallberecognized.Then

impairmenttestshallbecarriedoutontheassetgrouporassetgroupportfoliocontaininggoodwill,anditsbookvalueshallbecomparedwiththerecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossofgoodwillshallberecognized.Oncetheassetimpairmentlossisrecognized,itwillnotbereversedinfutureaccountingperiods.

32.Long-termdeferredexpenses

Thelong-termdeferredexpensesincurredbytheCompanyarepricedatactualcostandamortizedequallyaccordingtotheexpectedbenefitperiod.Forlong-termdeferredexpenseitemsthatcannotbenefitfutureaccountingperiods,alltheiramortizedvaluesareincludedincurrentprofitsandlosses.

33.Contractliabilities

ContractliabilitiesrefertotheobligationoftheCompanytotransfergoodstocustomersforthereceivedorreceivableconsiderationfromcustomers.IfthecustomerhaspaidthecontractconsiderationortheCompanyhasobtainedtheunconditionalcollectionrightbeforetheCompanytransfersthegoodstothecustomer,theCompanywilllistthereceivedorreceivableamountasthecontractliabilityattheearlieroftheactualpaymentmadebythecustomerandtheduedateforpayment.Contractassetsandliabilitiesunderthesamecontractarelistedinnetamount,whilecontractassetsandliabilitiesunderdifferentcontractsarenotoffset.

34.Remuneration

1.AccountingTreatmentMethodofShort-termCompensation

Duringtheaccountingperiodwhenemployeesprovideservices,theCompanyrecognizestheactualwages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,work-relatedinjuryinsurancepremiumsandmaternityinsurancepremiumspaidforemployeesandhousingprovidentfundsasliabilities,andincludesthemincurrentprofitsandlossesorrelatedassetcosts.Iftheliabilityisnotexpectedtobefullypaidwithintwelvemonthsaftertheendoftheannualreportingperiodwhenemployeesproviderelevantservices,andthefinancialimpactissignificant,theliabilitywillbemeasuredatthediscountedamount.

2.AccountingTreatmentMethodofSeveranceBenefitPlans

After-servicebenefitplanincludesdefinedcontributionplananddefinedbenefitplans.Wherethesetdepositplanreferstothepost-employmentbenefitsplaninwhichtheenterprisenolongerundertakesfurtherpaymentobligationsafterpayingfixedfeestoindependentfunds;Setbenefitplanreferstothepost-employmentbenefitsplanexceptthesetdepositplan.

Setdepositplan

Thesetdepositplanincludesbasicold-ageinsurance,unemploymentinsuranceandenterpriseannuityplan,etc.

Inadditiontothebasicold-ageinsurance,theCompanyestablishesanenterpriseannuityplan("annuityplan")

accordingtotherelevantpoliciesofthenationalenterpriseannuitysystem,andemployeescanvoluntarily

participateintheannuityplan.Moreover,theCompanyhasnoothersignificantsocialsecuritycommitments

foremployees.

Duringtheaccountingperiodwhenemployeesprovideservices,theamountthatshouldbepaidaccordingtothesetdepositplanisrecognizedasaliabilityandincludedinthecurrentprofitsandlossesorrelatedassetcosts.

Setbenefitplan

Forsetbenefitplans,anactuarialvaluationisconductedbyanindependentactuaryontheannualbalancesheetdate,andthecostofbenefitprovisionisdeterminedbytheexpectedcumulativebenefitunitmethod.The

employeeremunerationcostcausedbysetbenefitplansoftheCompanyincludesthefollowingcomponents:

①Servicecost,includingcurrentservicecost,pastservicecostandsettlementgainorloss.Where:thecurrentservicecostreferstotheincreaseofthepresentvalueofsetbenefitplanobligationscausedbytheemployeesprovidingservicesinthecurrentperiod;Pastservicecostreferstotheincreaseordecreaseofthepresentvalueofsetbenefitplanobligationsrelatedtoemployeeserviceinpreviousperiodcausedbythemodificationofsetbenefitplans.

②Thenetinterestofsetbenefitplan'snetliabilitiesornetassets,includinginterestincomeofplannedassets,interestexpenseofsetbenefitplanobligationsandinterestaffectedbyassetceiling.

③Changesarisingfromremeasurementofnetliabilitiesornetassetsofsetbenefitplans.

Unlessotheraccountingstandardsrequireorallowemployeebenefitcoststobeincludedinassetcosts,theCompanywillincludetheaboveitems①and②incurrentprofitsandlosses;Includeitem③inothercomprehensiveincomeandsuchitemwillnotbetransferredbacktoprofitorlossinthesubsequentaccountingperiod.Whentheoriginalsetbenefitplanisterminated,allthepartsoriginallyincludedinothercomprehensiveincomewillbecarriedforwardtoundistributedprofitswithinthescopeofequity.

3.AccountingTreatmentMethodofDemissionWelfare

IftheCompanyprovidesdismissalbenefitstoemployees,theemployeeremunerationliabilitiesarisingfromthedismissalbenefitsshallberecognizedandincludedinthecurrentprofitsandlossesontheearlierofthefollowingdates:WhentheCompanycannotunilaterallywithdrawthedismissalbenefitsprovidedbytheterminationoflaborrelationsplanorlayoffproposal;WhentheCompanyrecognizesthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofdismissalbenefits.

Iftheemployee'sinternalretirementplanisimplemented,theeconomiccompensationbeforetheofficialretirementdateisthedismissalbenefit.Fromthedaywhentheemployeestopsprovidingservicestothenormalretirementdate,thewagesoftheretiredemployeesandthesocialinsurancepremiumspaidwillbeincludedinthecurrentprofitsandlossesatonetime.Economiccompensationaftertheofficialretirementdate(suchasnormalpension)shallbetreatedaspost-employmentbenefits.

4.AccountingTreatmentMethodofOtherLong-termEmployeeBenefits

Ifotherlong-termemployeebenefitsprovidedbytheCompanytoemployeesmeettheconditionsforthesetdepositplan,theyshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthesetdepositplan.Ifitmeetsthesetbenefitplans,itshallbehandledinaccordancewiththeabove-mentionedrelevantregulationsonsetbenefitplans,butthepartoftherelatedemployeeremunerationcost,whichis"thechangecausedbyremeasurementofsetbenefitplan'snetliabilitiesornetassets",shallbeincludedinthecurrentprofitsandlossesorrelatedassetcosts.

35.LeaseliabilitiesNone

36.EstimatedLiabilities

Iftheobligationrelatedtocontingenciesmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasestimatedliabilities:

(1)SuchobligationisthecurrentobligationundertakenbytheCompany;

(2)TheperformanceofsuchobligationislikelytoleadtotheoutflowofeconomicbenefitsfromtheCompany;

(3)Theamountofsuchobligationcanbemeasuredreliably.Estimatedliabilitiesareinitiallymeasuredaccordingtothebestestimateofexpenditurerequiredtofulfillrelevantcurrentobligations,andfactorssuchasrisks,uncertaintiesandtimevalueofmoneyrelatedtocontingenciesarecomprehensivelyconsidered.Ifthetimevalueofmoneyhasgreatinfluence,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflow.TheCompanyrechecksthebookvalueoftheestimatedliabilitiesonthebalancesheetdate,andadjuststhebookvaluetoreflectthecurrentbestestimate.

Ifallorpartoftheexpensesrequiredtopayofftherecognizedestimatedliabilitiesareexpectedtobecompensatedbyathirdpartyorotherparties,thecompensationamountcanonlyberecognizedasanassetwhenitisbasicallyconfirmedthatitcanbereceived.Therecognizedcompensationamountshallnotexceedthebookvalueoftherecognizedliabilities.

37.Sharepayment

(1)Typesofshare-basedpayment

Theshare-basedpaymentoftheCompanyisdividedintoequity-settledshare-basedpaymentandcash-settledshare-basedpayment.

(2)Methodfordeterminingfairvalueofequityinstruments

ThefairvalueofequityinstrumentssuchasoptionsgrantedbytheCompanywithactivemarketisdeterminedaccordingtothequotedpriceintheactivemarket.Thefairvalueofgrantedequityinstrumentssuchasoptionswithoutactivemarketisdeterminedbyoptionpricingmodel.Theselectedoptionpricingmodelconsidersthefollowingfactors:A.Theexercisepriceofoptions;B.Thevalidityperiodoftheoption;C.Thecurrentpriceoftheunderlyingshares;D.Estimatedvolatilityofshareprice;E.Expecteddividendofshares;F.Risk-freeinterestratewithinthevalidityperiodoftheoption.

(3)Basisfordeterminingthebestestimationoffeasibleequityinstruments

Oneachbalancesheetdateduringthewaitingperiod,theCompanymakesthebestestimatebasedonthelatestavailablefollow-upinformationsuchaschangesinthenumberofemployeeswithfeasiblerights,andrevisestheestimatednumberofequityinstrumentswithfeasiblerights.Onthevestingdate,thefinalestimatednumberofvestingrightsandinterestsinstrumentsshallbeconsistentwiththeactualnumberofvestingrights.

(4)Accountingtreatmentrelatedtoimplementation,modificationandterminationofshare-basedpaymentplan

Equity-settledshare-basedpaymentismeasuredatthefairvalueofequityinstrumentsgrantedtoemployees.Iftherightisexercisedimmediatelyafterthegrant,therelevantcostsorexpensesshallbeincludedinthefairvalueofequityinstrumentsonthegrantdate,andthecapitalreserveshallbeincreasedaccordingly.Iftherightscanbeexercisedonlyaftertheserviceswithinthewaitingperiodarecompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthewaitingperiod,basedonthebestestimateofthenumberofequityinstrumentsavailable,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorexpensesandcapitalreserveaccordingtothefairvalueonthegrantdateofequityinstruments.Afterthevestingdate,therecognizedrelatedcostsorexpensesandthetotalowner'sequitywillnotbeadjusted.

Equity-settledshare-basedpaymentshallbemeasuredaccordingtothefairvalueofliabilitiescalculatedanddeterminedonthebasisofsharesorotherequityinstrumentsundertakenbytheCompany.Iftherightisexercisedimmediatelyafterthegrant,thefairvalueoftheliabilitiesassumedbytheCompanyshallbeincludedintherelevantcostsorexpensesonthegrantdate,andtheliabilitiesshallbeincreasedaccordingly.Forcash-settledshare-basedpaymentthatisfeasibleonlyaftertheservicewithinthewaitingperiodiscompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthewaitingperiod,basedonthebest

estimationofthefeasibilityandaccordingtothefairvalueoftheliabilitiesassumedbytheCompany,theservicesobtainedinthecurrentperiodareincludedinthecostsorexpensesandcorrespondingliabilities.Oneachbalancesheetdateandsettlementdatebeforethesettlementofrelatedliabilities,thefairvalueofliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitsandlosses.

WhentheCompanymodifiestheshare-basedpaymentplan,ifthefairvalueofthegrantedequityinstrumentsisincreasedbymodification,theincreaseoftheservicesobtainedshallberecognizedaccordingtotheincreaseofthefairvalueoftheequityinstruments;Ifthenumberofgrantedequityinstrumentsisincreasedbymodification,thefairvalueoftheincreasedequityinstrumentswillberecognizedastheincreaseinservicesobtainedaccordingly.Theincreaseoffairvalueofequityinstrumentsreferstothedifferencebetweenthefairvaluesofequityinstrumentsbeforeandaftermodificationonthemodificationdate.Ifthetotalfairvalueofshare-basedpaymentisreducedbymodificationorthetermsandconditionsoftheshare-basedpaymentplanaremodifiedinotherwaysthatareunfavorabletoemployees,theaccountingtreatmentoftheobtainedserviceswillcontinue,asifwithnochangesunlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentsarecancelled(exceptthosecancelledduetonon-marketconditionsthatdonotmeetthefeasiblerightsconditions),theCompanywilltreatthecancellationofthegrantedequityinstrumentsasanacceleratedexercise,andimmediatelyrecordtheamounttoberecognizedintheremainingwaitingperiodintothecurrentprofitsandlosses,andrecognizethecapitalreserveatthesametime.Iftheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailstomeetitduringthewaitingperiod,theCompanywilltreatitasacancellationforgrantingequityinstruments.

38.OtherfinancialinstrumentssuchaspreferredstocksandperpetualbondsNone

39.RevenueAccountingpoliciesadoptedforincomerecognitionandmeasurement

(1)Generalprinciples

TheCompanyhasfulfilledtheperformanceobligationinthecontract,thatis,torecognizetherevenuewhenthecustomerobtainsthecontrolrightofrelatedgoodsorservices.

Ifthecontractcontainstwoormoreperformanceobligations,theCompanywillamortizethetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractstartdate,andmeasuretheincomeaccordingtothetransactionpriceamortizedtoeachindividualperformanceobligation.

Whenoneofthefollowingconditionsismet,theCompanywillfulfillitsperformanceobligationswithinacertainperiodoftime;Otherwise,itperformstheperformanceobligationatacertaintime:

①ThecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformanceatthesametimeoftheitsperformance.

②CustomerscancontrolthegoodsunderconstructionduringtheperformanceoftheCompany.

③ThecommoditiesproducedduringtheperformanceoftheCompanyhaveirreplaceableuses,andtheCompanyhastherighttocollectpaymentfortheperformancepartaccumulatedsofarduringthewholecontractperiod.

Fortheperformanceobligationsperformedwithinacertainperiodoftime,theCompanyrecognizestheincomeaccordingtotheperformanceprogresswithinthatperiod.Iftheperformanceprogresscannotbereasonablydetermined,andthecostincurredoftheCompanyisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonably

determined.Forobligationsperformedatacertaintime,theCompanyshallrecognizetheincomeatthetimewhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetheracustomerhasobtainedcontrolofgoodsorservices,theCompanywillconsiderthefollowingsigns:

①TheCompanyhasthecurrentrighttoreceivepaymentforthegoodsorservices,thatis,thecustomerhasthecurrentpaymentobligationforthegoodsorservices.

②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods.

③TheCompanyhastransferredthephysicalgoodstothecustomer,thatis,thecustomerhasphysicallytakenpossessionofthegoods.

④TheCompanyhastransferredthemainrisksandrewardsontheownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsontheownershipofthegoods.

⑤Thecustomerhasacceptedthegoods.

⑥Othersignsthatthecustomerhasobtainedcontrolofthegoods.

TheCompanyhastransferredgoodsorservicestocustomersandhastherighttoreceiveconsideration(andtherightdependsonotherfactorsexceptthepassageoftime)ascontractassets,andthecontractassetsaredepreciatedonthebasisofexpectedcreditlosses.TherightoftheCompanytocollectconsiderationfromcustomersunconditionally(onlydependingonthepassageoftime)islistedasreceivables.TheobligationoftheCompanytotransfergoodsorservicestocustomersforreceivedorreceivableconsiderationfromcustomersshallberegardedasacontractualliability.

Contractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifthenetamountisdebitbalance,theyarelistedin"ContractAssets"or"OtherNon-currentAssets"accordingtotheirliquidity;Ifthenetamountisthecreditbalance,itshallbelistedin"ContractLiabilities"or"OtherNon-currentLiabilities"accordingtoitsliquidity.

(2)SpecificmethodThespecificmethodofrevenuerecognitionoftheCompanyisasfollows:

Polarizer/Textileandgarmentsalescontract:

Domesticsales:Whenthegoodsaredeliveredtothecustomerandthecustomerhasacceptedthegoods,thecustomerobtainsthecontrolofthegoods,andtheCompanyrecognizestherevenue.

Export:A.WhenthecustomerreceivesgoodsinChina,therevenuerecognitionisthesameas"RevenueRecognitionforDomesticSales";B.Whenthedeliveryplaceofcustomerisoutsidethecountry,theCompanymainlyadoptsFOB.Whenthegoodsaredeliveredfromthewarehouseandhavebeenexportedforcustomsdeclaration,theCompanyrecognizestherevenue.

Revenuefromproperty/accommodationservices:

Intheprocessofproperty/accommodationserviceprovision,theCompanyrecognizesrevenuebystages.TheadoptionofdifferentbusinessmodelsinsimilarbusinessesleadstodifferencesinaccountingpoliciesforincomerecognitionNone

40.Governmentsubsidy

Governmentsubsidiesarerecognizedwhentheymeettheconditionsattachedtogovernmentsubsidiesandcanbereceived.

Governmentsubsidiesformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentsubsidiesfornon-monetaryassetsaremeasuredatfairvalue;Ifthefairvaluecannotbeobtainedreliably,itshallbemeasuredaccordingtothenominalamountRMB1.GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheCompanyforpurchasingandbuildingorforminglong-termassetsinotherways;Inaddition,asagovernmentsubsidyrelatedtoincome.Wherethegovernmentdocumentsdonotspecifytheobjectofthesubsidy,andthesubsidycanformlong-termassets,thepartofthegovernmentsubsidiescorrespondingtothevalueoftheassetsshallberegardedasthegovernmentsubsidyrelatedtotheassets,andtherestshallberegardedasthegovernmentsubsidiesrelatedtotheincome;whereitisdifficulttobedistinguished,governmentsubsidiesasawholearetreatedasincome-relatedgovernmentsubsidies.Governmentsubsidiesrelatedtoassetsoffsetthebookvalueofrelatedassets,orarerecognizedasdeferredincomeandincludedinprofitsandlossesbystagesaccordingtoareasonableandsystematicmethodwithintheservicelifeofrelatedassets.Governmentsubsidiesrelatedtoincome,whichareusedtocompensaterelatedcostsorlossesthathaveoccurred,areincludedincurrentprofitsandlossesoroffsetrelatedcosts;Ifusedtocompensaterelatedcostsorlossesinlaterperiods,theywillbeincludedinthedeferredincome,andincludedinthecurrentprofitsandlossesoroffsetrelatedcostsduringtherecognitionperiodofrelatedcostsorlosses.Governmentsubsidiesmeasuredinnominalamountaredirectlyincludedincurrentprofitsandlosses.TheCompanyadoptsaconsistentapproachtothesameorsimilargovernmentsubsidybusiness.

Governmentsubsidiesrelatedtodailyactivitiesareincludedinotherincomeoroffsetrelatedcostsaccordingtothenatureofeconomicbusiness.Governmentsubsidiesirrelevanttoroutineactivitiesshallbeincludedintothenon-operatingreceiptanddisbursement.

Whentherecognizedgovernmentsubsidyneedstobereturned,ifthebookvalueofrelatedassetsisoffsetduringinitialrecognition,thebookvalueofassetswillbeadjusted;Ifthereisarelevantdeferredincomebalance,thebookbalanceoftherelevantdeferredincomewillbeoffset,andtheexcesswillbeincludedinthecurrentprofitsandlosses;Inothercases,itisdirectlyincludedinthecurrentprofitsandlosses.

Forthediscountinterestofpreferentialpolicyloans,ifthefinanceallocatesthediscountinterestfundstothelendingbank,theactuallyreceivedloanamountistakenastherecordedvalueoftheloan,andtheborrowingcostsarecalculatedaccordingtotheloanprincipalandpreferentialpolicyinterestrate.IfthefinancedirectlyallocatesthediscountinterestfundstotheCompany,thediscountinterestwilloffsettheborrowingcosts.

41.TheDeferredTaxAssets/ThedeferredTaxLiabilities

Incometaxincludescurrentincometaxanddeferredincometax.Exceptforadjustedgoodwillarisingfrombusinesscombinationordeferredincometaxrelatedtotransactionsormattersdirectlyincludedinowner'sequity,theyareallincludedincurrentprofitsandlossesasincometaxexpenses.

Accordingtothetemporarydifferencebetweenthebookvalueofassetsandliabilitiesandthetaxbasisonthebalancesheetdate,theCompanyadoptsthebalancesheetliabilitymethodtoconfirmdeferredincometax.

Alltaxabletemporarydifferencesarerecognizedasrelateddeferredincometaxliabilities,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:

(1)Initialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:thetransactionisnotabusinesscombination,andthetransactiondoesnotaffectaccountingprofitsortaxableincomewhenitoccurs;

(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociated

enterprises,thetimeforthetemporarydifferencestobereversedcanbecontrolledandthetemporarydifferenceswillprobablynotbereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxdeductionsthatcanbecarriedforwardtolateryears,theCompanyshallrecognizethedeferredincometaxassetsarisingtherefromtotheextentthatitislikelytoobtainthefuturetaxableincomeusedtooffsetthedeductibletemporarydifferences,deductiblelossesandtaxdeductions,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:

(1)Thetransactionisnotabusinesscombination,anditdoesnotaffectaccountingprofitortaxableincomewhenthetransactionoccurs;

(2)Fordeductibletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociatedenterprises,correspondingdeferredincometaxassetsarerecognizedifthefollowingconditionsaremetatthesametime:temporarydifferencesarelikelytobereversedintheforeseeablefuture,andtaxableincomeusedtooffsetthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.

Onthebalancesheetdate,theCompanymeasuresdeferredincometaxassetsanddeferredincometaxliabilitiesaccordingtotheapplicabletaxrateduringtheexpectedperiodofrecoveringtheassetsorpayingofftheliabilities,andreflectstheincometaximpactoftheexpectedwayofrecoveringtheassetsorpayingofftheliabilitiesonthebalancesheetdate.

Onthebalancesheetdate,theCompanyrechecksthebookvalueofdeferredincometaxassets.Ifitisunlikelythatsufficienttaxableincomewillbeobtainedinthefutureperiodtooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetswillbewrittendown.Whensufficienttaxableincomeislikelytobeobtained,thewritten-downamountshallbereversed.

42.Lease

(1)AccountingtreatmentmethodofoperatingleaseForrentinoperatinglease,theCompanyshallrecognizethecurrentprofitsandlossesaccordingtothestraight-linemethodineachperiodoftheleaseterm.Theinitialdirectexpensesrelatedtotheoperatingleaseshallbecapitalized,apportionedonthesamebasisastherentalincomeduringtheleaseterm,andincludedinthecurrentprofitsandlossesbystages.Thevariableleasepaymentrelatedtooperatinglease,whichisnotincludedintheleasecollectionamount,shallbeincludedinthecurrentprofitsandlosseswhenactuallyincurred.

(2)AccountingtreatmentmethodoffinancialleaseInfinanciallease,atthebeginningdateoftheleaseterm,theCompanytakesthenetleaseinvestmentastherecordedvalueofthefinancialleasereceivable,andthenetleaseinvestmentisthesumoftheunsecuredresidualvalueandthepresentvalueoftheleasereceiptsthathavenotyetbeenreceivedonthestartdateoftheleasetermdiscountedaccordingtotheinterestrateofthelease.Asthelessor,theCompanycalculatesandrecognizestheinterestincomeofeachperiodintheleasetermaccordingtothefixedperiodicinterestrate.ThevariableleasepaymentsobtainedbytheCompanyasthelessorthatarenotincludedinthemeasurementofnetleaseinvestmentareincludedinthecurrentprofitsandlosseswhenactuallyincurred.ThederecognitionandimpairmentoffinancialleasereceivablesshallbetreatedaccordingtotheprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandAccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets.

43.Otherimportantaccountingpoliciesandaccountingestimates

(1)ChangeofmainaccountingpoliciesAccountingpolicychangescausedbyimplementationofnewfinancialinstrumentstandards

(2)Changesinaccountingestimates

Nosignificantchangesinaccountingestimateshaveoccurredinthecurrentperiod.

44.Changeofmainaccountingpoliciesandestimations

(1)Changeofmainaccountingpolicies

√Applicable□Notapplicable

ThecontentandreasonforchangeofaccountingpolicyApprovalprocessRemarks
Inordertoadapttothedevelopmentofmarketeconomy,itstandardizestheaccountingtreatmentofrelatedeconomicbusinessandimprovesthequalityofaccountinginformation.OnDecember7,2018,theMinistryofFinanceissuedtheNoticeonRevisionandIssuanceofAccountingStandardsforBusinessEnterprisesNo.21-Leasing(CS[2018]No.35)(hereinafterreferredtoasthe"NewLeasingStandards").Accordingtotheregulations,theCompanywillimplementtheNewLeasingStandardsfromJanuary1,2021andadjusttherelevantcontentsofaccountingpolicies.TheexaminedandAdoptedatthe2ndmeetingofthe8thBoardofDirectorshttp://www.cninfo.com.cnOnMarch12,2021(AnnouncementNo.:2021-12)

①NewLeasingStandardsIn2018,theMinistryofFinanceissuedtherevisedAccountingStandardsforBusinessEnterprisesNo.21-Leasing(hereinafterreferredtoas"NewLeasingStandards"),whichshallcomeintoeffectonJanuary1,2019forenterpriseslistedathomeandabroadandthoselistedoverseasandusinginternationalfinancialreportingstandardsoraccountingstandardsforbusinessenterprisestopreparefinancialstatement,andonJanuary1,2021forotherenterprisesthatimplementaccountingstandardsforbusinessenterprises.TheCompanyhasimplementedtheNewLeasingStandardssinceJanuary1,2021.AccordingtotherelevantprovisionsoftheNewLeasingStandards,theCompanyheldthesecondmeetingoftheEighthBoardofDirectorsonMarch10,2021,approvedtheimplementationoftheNewLeasingStandardsfromJanuary1,2021,andadjustedtherelevantcontentsoftheaccountingpolicy.SeeNotesIII.30and31forthechangedaccountingpolicies.Forthecontractsexistingbeforethefirstimplementationdate,theCompanychoosesnottore-evaluatewhethertheyareleasesorincludeleasesonthefirstimplementationdate.Forcontractssignedorchangedafterthefirstimplementationdate,theCompanyevaluateswhetherthecontractisaleaseorincludesaleaseaccordingtothedefinitionofleaseintheNewLeasingStandards.

ThedefinitionofleaseintheNewLeasingStandardsdoesnothaveanysignificantimpactonthescopeofcontractsinwhichtheCompanymeetsthedefinitionoflease.AslesseeTheNewLeasingStandardsrequirethelesseetorecognizetheright-to-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleasesthataresimplified,andtorecognizedepreciationandinterestexpensesrespectively.TheNewLeasingStandardsallowthelesseetochooseoneofthefollowingmethodstoperformconnectionaccountingtreatmentonthelease:

AccordingtotheAccountingStandardsforBusinessEnterprisesNo.28-AccountingPolicies,Changesin

AccountingEstimatesandErrorCorrection,retrospectiveadjustmentmethodisadopted.Accordingtothecumulativeimpactofthefirstimplementationofthesestandards,theamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthefirstimplementationofthesestandardsareadjusted,andtheinformationofcomparableperiodisnotadjusted.AccordingtotheNewLeasingStandards,theCompanyhasretroactivelyadjustedthedifferencebetweenthefirstimplementationdateofNewLeasingStandardsandthecurrentleasestandardsintotheretainedearningsatthebeginningof2021.Atthesametime,theCompanyhasnotadjustedthedataofcomparativefinancialstatements.Forthefinancialleasebeforethefirstimplementationdate,theCompanymeasurestheright-to-useassetsandleaseliabilitiesrespectivelyaccordingtotheoriginalbookvalueofthefinancialleaseassetsandthefinancialleasepaymentspayable;Fortheoperatingleasebeforethefirstimplementationdate,theCompanymeasurestheleaseliabilitiesaccordingtothepresentvalueoftheremainingleasepaymentdiscountedattheincrementalborrowingrateonthefirstimplementationdate,andfortheleaseofhousesandbuildings,itmeasurestheright-to-useassetsaccordingtotheamountequaltotheleaseliabilities,andmakesnecessaryadjustmentsaccordingtotheprepaidrent.Onthefirstimplementationdate,theCompanyconductsimpairmenttestontheright-to-useassetsandconducts

correspondingaccountingtreatmentaccordingtoNotesIII.31.TheCompanyadoptssimplifiedtreatmentfortheoperatingleasewhoseleasedassetsarelow-valueassetsbeforethefirstimplementationdateortheoperatingleasethatwillbecompletedwithin12months,withoutrecognizingtheright-to-useassetsandleaseliabilities.TheCompanyadoptsthefollowingsimplifiedtreatmentfortheoperatingleasebeforethefirstimplementationdate:

Whenmeasuringleaseliabilities,thesamediscountratecanbeadoptedforleaseswithsimilarcharacteristics;The

measurementoftheright-to-useassetsmaynotincludetheinitialdirectcost;Ifthereisanoptiontoreneworterminatethelease,theCompanywilldeterminetheleasetermaccordingtothe

actualexerciseoftheoptionbeforethefirstimplementationdateandotherlatestinformation;Asasubstitutefortheimpairmenttestoftheright-to-useassets,theCompanyevaluateswhetherthecontract

includingleasesisanonerouscontractbeforethefirstimplementationdate,andadjuststheright-to-useassetsaccordingtothelossreserveamountincludedinthebalancesheetbeforethefirstimplementationdate;Fortheleasechangebeforethefirstimplementationdate,theCompanymakesaccountingtreatmentaccordingtothefinalarrangementoftheleasechange.TheimpactoftheimplementationoftheNewLeasingStandardsontheitemsofconsolidatedbalancesheetasofJanuary1,2021isasfollows:

ItemsBookbalancebeforeadjustment(December31,2020)ReclassificationRe-measurementBookbalanceafteradjustment(January1,2021)
Assets:
Righttouseassets----13,762,176.7413,762,176.74
Totalofassets----13,762,176.7413,762,176.74
Liabilities
Non-currentliabilitiesduewithin1year----4,342,927.514,342,927.51
Leaseliabilities----9,419,249.239,419,249.23
Totalofliabilities----13,762,176.7413,762,176.74

Fortheunpaidminimumleasepaymentofmajoroperatingleasesdisclosedinthe2020financialstatements,theCompanyadjustedtheunpaidminimumoperatingleasepaymentdisclosedundertheoriginalleasestandardstotheleaseliabilitiesrecognizedundertheNewLeasingStandardsaccordingtotheincrementalloaninterestrateofthelesseeonJanuary1,2021,asfollows:

MinimumleasepaymentformajoroperatingleaseonDecember31,2020A14,740,264.72
Less:Short-termleasewithsimplifiedtreatmentB42,452.83
Less:Leaseoflow-valueassetswithsimplifiedtreatmentC--
Plus:Re-evaluatedadjustmentoftheminimumleasepaymentintheleasetermD--
Plus:VariableleasepaymentadjustmentdependingonindexorratioE--
SubtotalF=A-B-C+/-D+/-)E14,697,811.89
Less:VATG--
AdjustedoperatingleasecommitmentH=F-G14,697,811.89
PresentvalueofoperatingleasepaymentonJanuary1,2021I13,762,176.74
Plus:FinancialleasepayableonDecember31,2020J--
LeaseliabilitiesonJanuary1st,2021K=I+J13,762,176.74
Including:non-currentliabilitiesduewithinoneyear4,342,927.51

Thebookvalueoftheright-to-useassetsonJanuary1,2021isasfollows:

Items2021.01.01
Right-to-useassets
Fortheright-to-useassetsrecognizedbytheoperatingleasebeforethefirstimplementationdate13,762,176.74
Financingleasedassetsrecognizedundertheoriginalleasestandards--
Total:13,762,176.74

TheimpactoftheimplementationoftheNewLeasingStandardsontheitemsof2021financialstatementisasfollows:

ItemsofconsolidatedbalancesheetNumberofstatementsasofDecember31,2021AssumingthataccordingtotheoriginalleasestandardsIncrease/decrease(-)
Assets:
Constructioninprocess71,482,031.0871,510,678.35-28,647.27
Righttouseassets9,221,189.37--9,221,189.37
Totalofassets80,703,220.4571,510,678.359,192,542.10
Liabilities
Non-currentliabilitiesduewithin1year5,175,393.52--5,175,393.52
Leaseliabilities4,243,855.71--4,243,855.71
Totalofliabilities9,419,249.23--9,419,249.23

Itemsofconsolidatedincomestatement

ItemsofconsolidatedincomestatementNumberofstatementsin2021AssumingthataccordingtotheoriginalleasestandardsIncrease/decrease(-)
Businesscosts1,908,519,413.281,908,686,016.10-166,602.82
Administrationexpenses122,088,830.15122,170,567.39-81,737.24
Financialexpenses-130,344.09-605,391.28475,047.19

AslessorAccordingtotheNewLeasingStandards,theCompanydoesnotneedtoadjustitsleaseasalessoraccordingtotheconnectionregulations,butitneedstomakeaccountingtreatmentaccordingtotheNewLeasingStandardsfromthedatewhentheNewLeasingStandardsarefirstimplemented.

(2)Changeofmainaccountingestimations

□Applicable√Notapplicable

(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeasesfromyear2021

√Applicable□Notapplicable

Whetherneedtoadjustthebalancesheetaccountatthebeginningoftheyear

□Yes√NoNoreasonforadjustingthebalancesheetaccountatthebeginningoftheyearNorelatedbusiness.

(4)RetrospectiveRestatementofPreviousComparativeDataduetotheFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeasesfromyear2021

□Applicable√Notapplicable

45.OtherNoneVI.TaxesoftheCompany

1.Maintaxescategoriesandtaxrate

TaxesTaxreferencesApplicabletaxrates
VATThetaxableturnover13%,6%,5%
CityconstructiontaxTurnovertaxtobepaidallowances7%
BusinessincometaxTurnovertaxtobepaidallowances25%,20%,16.5%,15%
EducationsurchargeTurnovertaxtobepaidallowances3%
LocaleducationsurchargeTurnovertaxtobepaidallowances2%

Incasethereexistanytaxpayerpayingcorporateincometaxatdifferenttaxrates,disclosetheinformation

NameoftaxpayerIncometaxrates

2.Taxpreference.InaccordancewithrelevantprovisionsoftheNoticeofMinistryofFinance,GeneralAdministrationofCustomsandStateTaxationAdministrationRegardingTaxPreferencePoliciesforFurtherSupportingtheDevelopmentofNew-typeDisplayDeviceIndustry(CaiGuanShui(2021)No.19),TheCompanymanufacturedkeymaterialsandpartsfortheupstreamindustryofnew-typedisplaydevicesincludingcolorfullightfiltercoatingandpolarizersheetthatcomplywiththeplanningforindependentdevelopmentofdomesticindustriesmayenjoythepreferentialpoliciesofexemptionfromimporttarifffortheimportofrawmaterialsandconsumablesforthepurposeofselfuseandproductionthatcannotbeproduceddomesticallyfromJanuary1,2021andDecember31,2030.SAPOPhotoelectricCo.,Ltd.thesubsidiarycompanyofourcompany,hasbeenqualifiedasnationalhigh-techenterprisesince2019,High-techandenterprisecertificateNo.:GR201944205666,Thecertificateisvalidforthreeyears,Theenterpriseincometaxrateofthisyearis15%.

ShenzhenBeautyCenturyGarmentCo.,Ltd.,ShenzhenHuaqiangHotelGarmentCo.,Ltd.andShenzhenLisiIndustrialDevelopmentCo.,Ltd.,subsidiariesoftheCompany,areallsmallandlow-profitenterprisesasstipulatedintheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonImplementingInclusiveTaxConcessionPolicyforSmallandMicroEnterprises(CS[2019]No.13).ForthepartofthetaxableincomeofthisyearthatdoesnotexceedRMB1million,thetaxableincomeisreducedto12.5%,andtheenterpriseincometaxispaidatarateof20%;ForthetaxableincomeofthisyearthatexceedsRMB1millionbutdoesnotexceedRMB3million,thetaxableincomeisreducedto50%andtheenterpriseincometaxispaidata

rateof20%.

3.OtherNoneVII.Notesofconsolidatedfinancialstatement

1.MonetaryCapital

InRMB

ItemsYear-endbalanceYear-beginningbalance
Cashathand792.644,127.10
Bankdeposit302,472,035.96271,085,025.10
Othermonetaryfunds--7,998,084.75
Total302,472,828.60279,087,236.95
Including:Thetotalamountofdepositabroad6,009,898.077,829,822.78

Othernote

Attheendoftheperiod,thereisnomortgage,pledgeorfreezing,ormoneydepositedabroadwithrestrictedrepatriation.

2.Transactionalfinancialassets

InRMB

ItemsYear-endbalanceYear-beginningbalance
Financialassetsmeasuredattheirfairvaluesandwiththevariationincludedinthecurrentprofitsandlosses586,540,735.16684,617,260.06
Including:
Structuredeposit0.00200,536,575.34
Monetaryfund586,540,735.16484,080,684.72
Including
Total586,540,735.16684,617,260.06

Othernote:

3.Derivativefinancialassets

单位:元

ItemsYear-endbalanceYear-beginningbalance

Othernote:

4.Notesreceivable

(1)Notesreceivablelistedbycategory

InRMB

ItemsYear-endbalanceYear-beginningbalance
Bankacceptance77,296,787.260.00
Commercialacceptance72,646,093.0216,813,657.28
Total149,942,880.2816,813,657.28

InRMB

CategoryAmountinyear-endBalanceYear-beginning
BookBalanceBaddebtprovisionBookvalueBookBalanceBaddebtprovisionBookvalue
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Ofwhich:
Accrualofbaddebtprovisionbyportfolio138,110,166.17100.00%365,055.740.24%149,942,880.2816,898,148.02100.00%84,490.740.50%16,813,657.28
Ofwhich:
Commercialacceptance73,011,148.7648.57%365,055.740.50%72,646,093.0216,898,148.02100.00%84,490.740.50%16,813,657.28
Bankacceptance65,099,017.4147.14%0.000.00%65,099,017.410.000.00%0.000.00%0.00
Total150,307,936.02100.00%365,055.740.24%149,942,880.2816,898,148.02100.00%84,490.740.50%16,813,657.28

Accrualofbaddebtprovisionbysingleitem:

InRMB

NameAmountinyear-end
BookBalanceBaddebtprovisionProportion(%)Reason

Accrualofbaddebtprovisionbyportfolio:Commercialacceptance

InRMB

NameAmountinyear-end
BookbalanceBaddebtprovisionProportion(%)
Commercialacceptance73,011,148.76365,055.740.50%

Note:

Accrualofbaddebtprovisionbyportfolio:

InRMB

NameAmountinyear-end
BookbalanceBaddebtprovisionProportion(%)

Note:

Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:

√Applicable□NotapplicableNone

(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision:

InRMB

CategoryOpeningbalanceAmountofchangeinthecurrentperiodClosingbalance
AccrualReversedorcollectedamountWrite-offOther
84,490.74280,565.00365,055.74
Total84,490.74280,565.00365,055.74

Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod

□Applicable√Notapplicable

(3)Notesreceivablepledgedbythecompanyattheendoftheperiod

InRMB

ItemsAmount

(4)AccountsreceivablefinancingendorsedordiscountedbytheCompanyattheendoftheperiodandnotexpiredyetonthedateofbalancesheet

InRMB

ItemsAmountderecognizedattheendoftheperiodAmountnotyetderecognizedattheendoftheperiod
Bankacceptance65,099,017.41
Total65,099,017.41

(5)AccountsreceivablefinancingtransferredtoaccountsreceivablebytheCompanyattheendoftheperiodduetofailureofthedrawertoperform

InRMB

ItemsAmount

Othernote

Attheendoftheterm,theCompanyhasnonotestotransferthedrawertothereceivables.

(6)TheCompanyhadnoaccountsreceivablefinancingactuallywrittenoffintheperiod

InRMB

ItemsAmount

5.Accountreceivable

(1)Classificationaccountreceivables.

InRMB

CategoryAmountinyear-endAmountinyear-begin
BookbalanceBaddebtprovisionBookvalueBookbalanceBaddebtprovisionBookvalue
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Accrualofbaddebtprovisionbysingleitem13,260,307.342.57%13,260,307.34100.00%20,641,002.243.52%13,552,865.2565.66%7,088,136.99
Including:
Accrualofbaddebtprovisionbyportfolio502,848,549.9797.43%22,849,841.404.54%479,998,708.57565,279,517.4796.48%25,057,436.564.43%540,222,080.91
Including:
Total516,108,857.31100.00%36,110,148.747.00%479,998,708.57585,920,519.71100.00%38,610,301.816.59%547,310,217.90

Accrualofbaddebtprovisionbysingleitem:

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportionReason
DongguanYaxingSemiconductorCo.,Ltd.2,797,016.812,797,016.81100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
DongguanFairLCDCo.,Ltd.1,697,122.751,697,122.75100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
GuangdongRuiliBaolaiTechnologyCo.,Ltd.1,298,965.361,298,965.36100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
HuangshanZhongxianweiElectricCo.,Ltd.902,031.00902,031.00100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
ShenzhenGulidaMicroelectronicsCo.,Ltd.422,178.00422,178.00100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
Other6,142,993.426,142,993.42100.00%Beyondthecreditperiodforalongtime,uncertainrecovered.
Total13,260,307.3413,260,307.34----

Accrualofbaddebtprovisionbysingleitem:

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportionReason

Accrualofbaddebtprovisionbyportfolio:

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportion
Within1year502,848,447.1822,849,816.114.55%
1-2years102.7925.2924.60%
Total502,848,549.9722,849,841.40--

Note:

Accrualofbaddebtprovisionbyportfolio:

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportion

Note:

Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:

□Applicable√Notapplicable

Disclosurebyaging

InRMB

AgingClosingbalance
Within1year(Including1year)502,894,801.73
1-2years5,702.29
2-3years676,153.40
Over3years12,532,199.89
3-4years103,011.28
4-5years389.73
Over5years12,428,798.88
Total516,108,857.31

(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision:

InRMB

CategoryOpeningbalanceAmountofchangeinthecurrentperiodClosingbalance
AccrualReversedorcollectedamountWrite-offOther
38,610,301.81-1,531,351.49968,801.5836,110,148.74
Total38,610,301.81-1,531,351.49968,801.5836,110,148.74

Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:

InRMB

NameAmountWay

(3)Theactualwrite-offaccountsreceivable

InRMB

ItemsAmount

Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:

InRMB

NameNatureAmountReasonVerificationproceduresperformedWhetherthemoneyisgeneratedbyrelatedpartytransactions

Note:

None

(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty

InRMB

NameBalanceinyear-endProportion(%)Baddebtprovision
TCLCSOT81,678,407.0515.83%3,700,031.84
CSOT64,415,196.8612.48%2,918,008.42
Huijin(Shenzhen)TechnologyCo.,Ltd.49,476,257.039.59%2,241,274.45
LGDisplay(China)Co.,Ltd.36,387,596.377.05%1,648,358.12
LGDisplay(Guangzhou)Co.,Ltd.35,275,590.176.83%1,597,984.24
Total267,233,047.4851.78%

(5)AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone

(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone

6.Receivablefinancing

InRMB

ItemsClosingbalanceOpeningbalance
Notereceivable21,474,101.07102,051,314.08
Total21,474,101.07102,051,314.08

Changesincurrentperiodandfairvalueofreceivablesfinancing

√Applicable□NotapplicableNoneRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:

√Applicable□NotapplicableNoneOthernote:

SomesubsidiariesoftheCompanydiscountandendorsesomebankacceptancebillsaccordingtotheneedsoftheirdailyfundmanagement,thereforethebankacceptancebillsofthesubsidiariesareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.ThereisnosinglebankacceptancebillwithimpairmentprovisionoftheCompany.OnDecember31,2021,

theCompanyconsideredthattherewasnosignificantcreditriskinthebankacceptancebillsheldbyit,andtherewouldbenosignificantlossduetobankdefault.

7.Prepayments

(1)Listbyaginganalysis:

InRMB

AgingClosingbalanceOpeningbalance
AmountProportion%AmountProportion%
Within1year15,157,623.2798.38%14,934,263.0388.35%
1-2years248,996.261.62%557,043.063.30%
2-3years540,748.423.20%
Over3years870,461.885.15%
Total15,406,619.53--16,902,516.39--

Notesofthereasonsoftheprepaymentagesover1yearwithsignificantamountbutfailedsettledintimeOnDecember31,2021,therewasnolargeprepaymentwithanaccountingageofmorethanoneyearinthebalanceofprepayment.

(2)TheendingbalanceofPrepaymentsowedbytheimputationofthetopfivepartiesThetopfiveendingbalancesofprepaymentscollectedaccordingtoprepaidobjectstotaledRMB7,270,639.80,accountingfor47.20%ofthetotalclosingbalancesofprepayments.Othernote:None

8.Otherreceivable

InRMB

ItemsClosingbalanceOpeningbalance
Otheraccountsreceivable140,185,750.405,265,002.71
Total140,185,750.405,265,002.71

(1)Interestreceivable

1)Categoryofinterestreceivable

单位:元

ItemsClosingbalanceOpeningbalance
Fixeddeposit0.000.00
Entrustedloan0.000.00
Bondinvestment0.000.00

2)Significantoverdueinterest

InRMB

ItemsBalanceinyear-endAgingReasonsfornon-recoveryWhetherwithimpairmentandthejudgmentbasis

Othernote:

3)Thebaddebtprovision

□Applicable√Notapplicable

(2)Dividendreceivable

1)Dividendreceivable

InRMB

ItemsBalanceinyear-endBalanceYear-beginning

2)Significantdividendreceivableagedover1year

InRMB

ItemsBalanceinyear-endAgingReasonsfornon-recoveryWhetherwithimpairmentandthejudgmentbasis

3)Thebaddebtprovision

□Applicable√NotapplicableOthernote:

(3)Otheraccountsreceivable

1)Otheraccountsreceivableclassified

InRMB

NatureClosingbookbalanceOpeningbookbalance
ReserveFundsandEmployeeLoans293,128.97379,477.97
Depositandsecuritydeposit144,954,822.312,585,585.87
Exporttaxrebate1,698,919.821,658,146.29
Unitexchanges16,402,902.3316,369,395.10
Other1,834,489.232,069,761.14
Total165,184,262.6623,062,366.37

2)Bad-debtprovision

InRMB

BadDebtReservesStage1Stage2Stage3Total
Expectedcreditlossesoverthenext12monthsExpectedcreditlossoverlife(nocreditimpairment)Expectedcreditlossesfortheentireduration(creditimpairmentoccurred)
BalanceasatJanuary1,2021573,597.0117,223,766.6517,797,363.66
BalanceasatJanuary1,2021incurrent————————
Provisioninthecurrentperiod7,221,660.067,221,660.06
BalanceasatDecember31,20217,795,257.0717,203,255.1924,998,512.26

Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

√Applicable□Notapplicable

Disclosurebyaging

InRMB

AgingClosingbalance
Within1year(Including1year)146,289,172.36
1-2years931,075.99
2-3years411,482.57
Over3years17,552,531.74
3-4years546,382.79
4-5years537,717.29
Over5years16,468,431.66
Total165,184,262.66

3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision:

InRMB

CategoryOpeningbalanceAmountofchangeinthecurrentperiodClosingbalance
AccrualReversedorWrite-offOther
collectedamount
17,797,363.667,221,660.0620,511.4624,998,512.26
Total17,797,363.667,221,660.0620,511.4624,998,512.26

NoteWherethecurrentbaddebtsbackorrecoversignificantamounts:

InRMB

NameAmountMode

4)Otheraccountreceivablesactuallycancelafterwrite-off

InRMB

ItemsAmount

Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:

InRMB

NameNatureAmountReasonVerificationproceduresperformedWhetherthemoneyisgeneratedbyrelatedpartytransactions

Othernote

5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty

InRMB

NameNatureYear-endbalanceAgingPortionintotalotherreceivables(%)Baddebtprovisionofyear-endbalance
ShenzhenBeautyCenturyGarmentCo.,Ltd.Internalcurrentaccount143,101,258.401-3years86.63%7,155,062.92
JiangxiXuanliThreadCo.,Ltd.Unitaccount11,389,044.60Over5years6.89%11,389,044.60
AnhuiHuapengTextileCompanyUnitaccount1,800,000.00Over5years1.09%1,800,000.00
ShenzhenDailisiUnderwearCo.,LtdUnitaccount1,100,000.00Within1year0.67%55,000.00
ShenzhenXieliUnitaccount1,018,295.372-5years0.62%1,018,295.37
AutomobileRepairPlant
Total--158,408,598.37--95.90%21,417,402.89

6)Accountsreceivableinvolvedwithgovernmentsubsidies

InRMB

NameNameofthegovernmentsubsidyprojectYear-endbalanceAgingTime,amountandbasisoftheexpectedcollection

Thecompanyhasnogovernmentsubsidiesreceivable.

7)OtheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone

8)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivable

NoneOthernote:

9.InventoriesWhetherthecompanyneedtocomplywiththedisclosurerequirementsoftherealestateindustryNo

(1)CategoryofInventory

InRMB

ItemsClosingbookbalanceOpeningbookbalance
BookbalanceProvisionforinventoryimpairmentBookvalueBookbalanceProvisionforinventoryimpairmentBookvalue
Rawmaterials349,978,870.8726,335,509.94323,643,360.93258,191,196.8213,788,646.60244,402,550.22
Processingproducts10,992,072.5910,992,072.592,715,845.962,715,845.96
Goodinstock118,034,342.6136,750,396.0281,283,946.59132,780,479.7243,914,789.9088,865,689.82
Goodsintransit7,910,629.6230,573.897,880,055.73524,698.46524,698.46
Semi-finished270,743,032.2634,298,745.28236,444,286.98131,069,647.7714,613,640.62116,456,007.15
Commissionedmaterials7,838,404.74620,680.537,217,724.2131,040,280.453,157,490.6227,882,789.83
Total765,497,352.6998,035,905.66667,461,447.03556,322,149.1875,474,567.74480,847,581.44

(2)Inventoryfallingpricereservesandreservesforimpairmentofcontractperformancecosts

InRMB

ItemsOpeningbalanceIncreasedincurrentperiodDecreasedincurrentperiodClosingbalance
AccrualReversedorcollectedamountWrite-offOther
Rawmaterials13,788,646.6019,526,328.726,979,465.3826,335,509.94
Goodinstock43,914,789.9025,646,269.7532,810,663.6336,750,396.02
Semi-finished14,613,640.6237,652,098.2217,966,993.5634,298,745.28
Goodsintransit30,573.8930,573.89
Commissionedmaterials3,157,490.62620,680.533,157,490.62620,680.53
Total75,474,567.7483,475,951.1160,914,613.1998,035,905.66

(3)DescriptionofTheclosingbalanceofinventoriescontaintheamountofborrowingcostscapitalized

(4)Descriptionofamortizationamountofcontractperformancecostinthecurrentperiod

10.ContractassetsRelevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofcontractassetsisaccruedaccordingtothegeneralmodelofexpectedcreditloss:

□Applicable√NotapplicableProvisionforimpairmentofcontractassetsinthecurrentperiodOthernote

11.Assetsdividedasheld-to-soldNotapplicableOthernote:

12.Non-currentassetsduewithin1yearNotapplicableOthernote

13.Othercurrentassets

InRMB

ItemsYear-endbalanceYear-beginningbalance
AfterthedeductionofinputVAT860,153.7077,482,083.47
Advancepaymentofincometax57,448.91
Returnsreceivablecosts28,585,749.81
Total29,503,352.4277,482,083.47

Othernote:

14.Creditor'srightinvestment

InRMB

ItemsYear-endbalanceYear-beginningbalance
BookbalanceBaddebtprovisionBookvalueBookbalanceBaddebtprovisionBookvalue

NotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√NotapplicableOthernote:

15.Othercreditor'srightsinvestmentNotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√NotapplicableOthernote

16.Long-termaccountsreceivable

(1)Listoflong-termaccountsreceivableNotapplicableLossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√NotapplicableOthernote

(2)Long-termaccountsreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets

(3)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementoflong-termaccountsreceivableOthernote

17.Long-termequityinvestment

InRMB

InvesteesOpeningbalanceIncrease/decreaseClosingbalanceClosingbalanceofimpairmentprovision
AdditionalinvestmentDecreaseininvestmentProfitsandlossesoninvestmentsRecognizedundertheequitymethodOthercomprehensiveincomeChangesinotherequityCashbonusorprofitsannouncedtoissueWithdrawalofimpairmentprovisionOther
I.Jointventures
AnhuiHuapengTextileCo.,Ltd.10,797,023.1410,797,023.14
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.127,906,165.17308,060.37128,214,225.54
Subtotal138,703,188.3110,797,023.14308,060.37128,214,225.54
2.AffiliatedCompany
ShenzhenChanglianfaPrinting&dyeingCompany2,706,262.38265,940.592,972,202.97
HongkongYehuiInternationalCo.,Ltd.6,519,686.54-540,016.30-199,063.733,944,709.251,835,897.26
Subtotal9,225,948.92-274,075.71-199,063.733,944,709.254,808,100.23
Total147,929,137.2310,797,023.1433,984.66-199,063.733,944,709.25133,022,325.77

Othernote

18.Otherequityinstrumentsinvestment

InRMB

ItemsYear-endbalanceYear-beginningbalance
FuaoautopartsCo.,Ltd.(000030)10,129,390.84
ShenzhenDailishiUnderwearCo.,Ltd.23,637,000.0012,315,939.61
UnionDevelopmentGroupCo.,Ltd.144,109,485.84152,469,200.00
JintianIndustry(Group)Co.,Ltd.
ShenzhenXinfangKnittingCo.,Ltd.2,227,903.002,227,903.00
ShenzhenSouthTextileCo.,Ltd.16,059,440.8813,464,994.09
Total186,033,829.72190,607,427.54

Itemizeddisclosureofthecurrentnon-tradingequityinstrumentinvestment

InRMB

NameRecognizeddividendincomeAccumulatingincomeAccumulatinglossesAmountofothercomprehensiveincometransferredtoretainedearningsReasonsforbeingmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeReasonsforothercomprehensiveincometransferredtoretainedearning
Fuaoautoparts414,007.801,158,325.791,158,325.79Disposal
Co.,Ltd.(000030)
ShenzhenDailishiUnderwearCo.,Ltd.1,037,735.8521,077,143.74
UnionDevelopmentGroupCo.,Ltd.208,000.00141,509,485.84
ShenzhenXinfangKnittingCo.,Ltd.1,703,903.00
JintianIndustry(Group)Co.,Ltd.14,831,681.50
ShenzhenSouthTextileCo.,Ltd.892,152.3714,559,440.88

Othernote:

Note:TheamountoftheCompany'sinvestmentinJintianIndustrial(Group)Co.,Ltd.isallimpaired.AstheaboveitemsareinvestmentsthattheCompanyplanstoholdforalongtimeforstrategicpurposes,theCompanydesignatesthemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.

19.Othernon-currentfinancialassets

InRMB

ItemsYear-endbalanceYear-beginningbalance
Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses30,650,943.4030,650,943.40
Total30,650,943.4030,650,943.40

Othernote:

20.Investmentrealestate

(1)Investmentrealestateadoptedthecostmeasurementmode

√Applicable□Notapplicable

InRMB

ItemsHouse,BuildingLanduserightConstructioninprocessTotal
I.Originalprice
1.Balanceatperiod-beginning261,742,940.53261,742,940.53
2.Increaseinthecurrentperiod3,028,785.003,028,785.00
(1)Purchase3,028,785.003,028,785.00
(2)Inventory\Fixedassets\Transferredfromconstructioninprogress
(3)IncreasedofEnterpriseCombination

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod1,127,850.601,127,850.60
(1)Dispose1,127,850.601,127,850.60
(2)Otherout

4.Balanceatperiod-end

4.Balanceatperiod-end263,643,874.93263,643,874.93
II.Accumulatedamortization
1.Openingbalance151,170,468.61151,170,468.61
2.Increasedamountoftheperiod6,986,473.756,986,473.75
(1)Withdrawal6,986,473.756,986,473.75

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod730,847.19730,847.19
(1)Dispose730,847.19730,847.19
(2)Otherout

4.Balanceat

4.Balanceat157,426,095.17157,426,095.17
period-end
III.Impairmentprovision
1.Balanceatperiod-beginning
2.Increasedamountoftheperiod
(1)Withdrawal

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod
(1)Dispose
(2)Otherout

4.Balanceatperiod-end

4.Balanceatperiod-end
IV.Bookvalue
1.Bookvalueatperiod-end106,217,779.76106,217,779.76
2.Bookvalueatperiod-beginning110,572,471.92110,572,471.92

(2)Investmentpropertyadoptedfairvaluemeasurementmode

□Applicable√Notapplicable

(3)Investmentrealestatewithoutcertificateofownership

InRMB

ItemsBookbalanceReason
HousesandBuilding10,658,816.07Unabletoapplyforwarrantsduetohistoricalreasons

Othernote

21.Fixedassets

InRMB

ItemsYear-endbalanceYear-beginningbalance
Fixedassets2,424,741,252.86790,183,905.38
Total2,424,741,252.86790,183,905.38

(1)Listoffixedassets

InRMB

ItemsHouses&buildingsMachineryequipmentTransportationsOtherequipmentTotal
I.Originalprice
1.Openingbalance545,896,931.251,017,693,432.9611,379,729.0842,420,673.141,617,390,766.43
2.Increasedamountoftheperiod258,765,257.281,535,123,033.223,899,262.5912,891,530.111,810,679,083.20
(1)Purchase1,569,521.4729,933,637.961,151,689.532,588,556.4035,243,405.36
(2)Transferredfromconstructioninprogress257,195,735.811,505,189,395.262,747,573.0610,302,973.711,775,435,677.84
(3)IncreasedofEnterpriseCombination

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod2,149,210.944,933,091.357,082,302.29
(1)Disposal2,149,210.944,933,091.357,082,302.29

4.Balanceatperiod-end

4.Balanceatperiod-end804,662,188.532,550,667,255.2415,278,991.6750,379,111.903,420,987,547.34
II.Accumulateddepreciation
1.Openingbalance159,918,391.99630,517,504.873,217,030.8627,084,284.60820,737,212.32
2.Increasedamountoftheperiod23,052,994.89147,538,129.771,144,752.533,394,343.06175,130,220.25
(1)Withdrawal23,052,994.89147,538,129.771,144,752.533,394,343.06175,130,220.25

3.Decreaseinthereporting

3.Decreaseinthereporting1,608,147.104,407,313.586,015,460.68
period
(1)Disposal1,608,147.104,407,313.586,015,460.68

4.Closingbalance

4.Closingbalance182,971,386.88776,447,487.544,361,783.3926,071,314.08989,851,971.89
III.Impairmentprovision
1.Openingbalance6,373,080.8196,567.926,469,648.73
2.Increaseinthereportingperiod32,769.2232,769.22
(1)Withdrawal32,769.2232,769.22

3.Decreaseinthereportingperiod

3.Decreaseinthereportingperiod11,527.4496,567.92108,095.36
(1)Disposal11,527.4496,567.92108,095.36
(2)Otherdecrease
4.Closingbalance6,361,553.3732,769.226,394,322.59
IV.Bookvalue
1.Bookvalueoftheperiod-end621,690,801.651,767,858,214.3310,917,208.2824,275,028.602,424,741,252.86
2.Bookvalueoftheperiod-begin385,978,539.26380,802,847.288,162,698.2215,239,820.62790,183,905.38

(2)Fixedassetstemporarilyidled

InRMB

ItemsOriginalpriceAccumulateddepreciationImpairmentprovisionBookvalueRemark

⑶Fixedassetsleasedoutthroughoperatingleases

InRMB

ItemsBookvalue

(4)Fixedassetswithoutcertificateoftitlecompleted

InRMB

ItemsBookValueReason
HousesandBuilding275,225,966.28Unabletoapplyforwarrantsduetohistoricalreasons

Othernote

(5)Liquidationoffixedassets

InRMB

ItemsYear-endbalanceYear-beginningbalance

Othernote

22.Constructioninprogress

InRMB

ItemsYear-endbalanceYear-beginningbalance
Constructioninprogress71,482,031.081,301,750,141.12
Total71,482,031.081,301,750,141.12

(1)Listofconstructioninprogress

InRMB

ItemsYear-endbalanceYear-beginningbalance
BookbalanceProvisionfordevaluationBookvalueBookbalanceProvisionfordevaluationBookvalue
IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7)1,301,693,689.121,301,693,689.12
Other56,452.0056,452.00
Installationofmachinesandequipment71,482,031.0871,482,031.08
Total71,482,031.0871,482,031.081,301,750,141.121,301,750,141.12

(2)Changesofsignificantconstructioninprogress

InRMB

NameBudgetAmountatyearbeginningIncreaseatthisperiodTransferredtofixedassetsOtherdecreaseBalanceinyear-endProportion(%)ProgressofworkCapitalisationofinterestaccumulatedbalanceIncluding:CurrentamountofcapitalizationofinterestCapitalisationofinterestratio(%)Sourceoffunds
IndustrializationprojectofPolaroidforsuperlargesizeTV(Line7)2,106,698,400.001,301,693,689.12468,844,861.201,770,538,550.3299.26%Investmentinfixedassetshasbeentransferred13,747,732.559,807,167.264.41%Other
Total2,106,698,400.001,301,693,689.12468,844,861.201,770,538,550.32----13,747,732.559,807,167.264.41%--

(3)ImpairmentprovisionofconstructionprojectsNotapplicableOthernote

(4)Engineeringmaterial

InRMB

ItemsYear-endbalanceYear-beginningbalance
BookbalanceProvisionfordevaluationBookvalueBookbalanceProvisionfordevaluationBookvalue

Othernote:

23.Productivebiologicalassets

(1)Productivebiologicalassetsmeasuredatcostmethods

□Applicable√Notapplicable

(2)Productivebiologicalassetsmeasuredatfairvalue

□Applicable√Notapplicable

24.Oilandgasassets

□Applicable√Notapplicable

25.Righttouseassets

InRMB

ItemsTotal
1.Balanceatyearbeginning13,762,176.7413,762,176.74
4.Year-endbalance13,762,176.7413,762,176.74
2.Increaseatthisperiod4,540,987.374,540,987.37
4.Year-endbalance4,540,987.374,540,987.37
1.Bookvalue9,221,189.379,221,189.37

Othernote:

None

26.Intangibleassets

(1)Information

InRMB

ItemsLanduserightPatentrightNon-proprietarytechnologySoftwareTotal
I.Originalprice
1.Balanceatperiod-beginning48,258,239.0011,825,200.004,079,953.7064,163,392.70
2.Increaseinthecurrentperiod17,616,287.3217,616,287.32
(1)Purchase17,616,287.3217,616,287.32
(2)InternalR&D
(3)IncreasedofEnterprise

Combination

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod
(1)Disposal

4.Balanceatperiod-end

4.Balanceatperiod-end48,258,239.0011,825,200.0021,696,241.0281,779,680.02
II.Accumulatedamortization
1.Balanceatperiod-beginning13,487,191.2711,825,200.002,802,022.5228,114,413.79
2.Increaseinthecurrentperiod895,391.764,134,714.475,030,106.23
(1)Withdrawal895,391.764,134,714.475,030,106.23

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod
(1)Disposal

4.Balanceatperiod-end

4.Balanceatperiod-end14,382,583.0311,825,200.006,936,736.9933,144,520.02
III.Impairmentprovision
1.Balanceatperiod-beginning
2.Increaseinthecurrentperiod
(1)Withdrawal

3.Decreasedamountoftheperiod

3.Decreasedamountoftheperiod
(1)Disposal
4.Balanceatperiod-end
4.Bookvalue
1.Bookvalueatperiod-end33,875,655.970.0014,759,504.0348,635,160.00
2.Bookvalueatperiod-beginning34,771,047.730.001,277,931.1836,048,978.91

TheproportiontheintangibleassetsformedfromtheinternalR&DthroughtheCompanyamountthebalanceoftheintangibleassetsattheperiod-end.

(2)Detailsoffixedassetsfailedtoaccomplishcertificationoflanduseright

InRMB

ItemsBookvalueReason

Othernote:

Forintangibleassetsmortgagedbybankloans,pleaserefertoVIINotestoconsolidatedfinancialstatements"81.Assetswithrestrictedownershiporuserights".

27..Developmentexpenses

InRMB

ItemsBalanceinyear-beginIncreaseinthisperiodDecreaseinthisperiodBalanceinyear-end
InternaldevelopmentexpenditureOtherRecognizedasintangibleassetsTransfertocurrentprofitandloss

Total

Othernote

28.Goodwill

(1)Originalbookvalueofgoodwill

InRMB

TotalNameoftheinvesteesortheeventsformedgoodwill

NameoftheinvesteesortheeventsformedgoodwillOpeningbalanceIncreaseDecreaseClosingbalance
Themergerofenterprisesdisposition
SAPO9,614,758.559,614,758.55
Photoelectric
ShenzhenBeautyCenturyGarmentCo.,Ltd.2,167,341.212,167,341.21
Total11,782,099.7611,782,099.76

(2)Impairmentofgoodwill

InRMB

InvesteeBalanceinyear-beginIncreasedatthisperiod.DecreasedatthisperiodClosingbalance
Provisiondisposition
SAPOPhotoelectric9,614,758.559,614,758.55
ShenzhenBeautyCenturyGarmentCo.,Ltd.2,167,341.212,167,341.21
Total11,782,099.7611,782,099.76

Informationaboutanassetgrouporassetgroupportfolio

Explainthegoodwillimpairmenttestprocess,keyparameters(suchasforecastperiodgrowthrateatexpectedfuturecashflow,stableperiodgrowthrate,profitmargin,discountrate,forecastperiod,etc.)andtheconfirmationmethodofgoodwillimpairmentlossImpactofthegoodwillimpairmenttestOthernote

29.Longtermamortizeexpenses

InRMB

ItemsBalanceinyear-beginIncreaseinthisperiodAmortizedexpensesOtherlossBalanceinyear-end
Decorationfee111,541.85409,932.91188,830.66332,644.10
Renovationfee1,264,954.743,224,534.02714,221.683,775,267.08
Other1,500,064.9447,430.80268,110.981,279,384.76
Total2,876,561.533,681,897.731,171,163.325,387,295.94

OthernoteNone

30.Deferredincometaxassets/deferredincometaxliabilities

(1)Detailsoftheun-recognizeddeferredincometaxassets

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
DeductibletemporarydifferenceDeferredincometaxassetsDeductibletemporarydifferenceDeferredincometaxassets
Assetsdepreciationreserves5,766,782.711,440,192.9018,865,669.844,709,761.70
Unattainedinternalsalesprofits2,324,192.50348,628.882,413,307.05361,996.06
Restrictedstockrepurchaseinterest686,670.00171,667.50
Salarypayabletostaff7,679,100.001,919,775.00
Total15,770,075.213,708,596.7821,965,646.895,243,425.26

(2)Detailsoftheun-recognizeddeferredincometaxliabilities

InRMB

ItemsClosingbalanceOpeningbalance
DeductibletemporarydifferenceDeferredincometaxliabilitiesDeductibletemporarydifferenceDeferredincometaxliabilities
Changesinfairvalueofinvestmentsinotherequityinstruments178,849,973.4644,712,493.37174,482,972.9743,620,743.24
Thedifferencebetweentheinitialrecognitioncostandtaxbaseoflong-termequityinvestmentofGuanhuaCompany62,083,693.3615,520,923.3462,083,693.3615,520,923.34
Differenceinrentreceivable5,636,976.781,409,244.20
Total246,570,643.6061,642,660.91236,566,666.3359,141,666.58

(3)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set

InRMB

ItemsTrade-offbetweenthedeferredincometaxassetsandliabilitiesEndbalanceofdeferredincometaxassetsorliabilitiesafteroff-setTrade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-beginOpeningbalanceofdeferredincometaxassetsorliabilitiesafteroff-set
Deferredincometaxassets3,708,596.785,243,425.26
Deferredincometaxliabilities61,642,660.9159,141,666.58

(4)Detailsofincometaxassetsnotrecognized

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Deductibletemporarydifference151,027,647.77122,887,462.20
Deductibleloss736,209,989.47682,013,840.25
Total887,237,637.24804,901,302.45

(5)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears

InRMB

YearBalanceinyear-endBalanceinyear-beginRemark
2023129,226,944.33129,226,944.33
2024148,095,898.11148,095,898.11
202583,287,153.6483,287,153.64
2026120,820,767.06120,820,767.06
202822,594,586.9722,594,586.97
2029100,351,965.47100,351,965.47
203077,636,524.6777,636,524.67
203154,196,149.22
Total736,209,989.47682,013,840.25--

Othernote:

None

31.Othernon-currentassets

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
BookbalanceProvisionfordevaluationBookvalueBookbalanceProvisionfordevaluationBookvalue
Advancepaymentforequipmentfund28,769,782.860.0028,769,782.8647,483,219.830.0047,483,219.83
Certificateofdepositformorethan1year30,030,410.960.0030,030,410.9670,064,383.560.0070,064,383.56
ShenzhenXieliAutomobileCo.,ltd.25,760,086.270.0025,760,086.2725,760,086.270.0025,760,086.27
Total84,560,280.090.0084,560,280.09143,307,689.660.00143,307,689.66

Othernote:

None

32.Short-termborrowings

(1)Categoriesofshort-termloans

InRMB

ItemsBalanceinyear-endBalanceYear-beginning

Note:

(2)SituationofOverdueOutstandingShort-TermBorrowingNotapplicableOthernote:

33.Transactionalfinancialliabilities

InRMB

ItemsBalanceinyear-endBalanceyear-beginning
Including:
Including:

Othernote:

34.Derivativefinancialliability

InRMB

ItemsBalanceinyear-endBalanceyear-beginning

Othernote:

35.Notespayable

InRMB

TypeBalanceinyear-endBalanceinyear-begin
BankacceptanceBill16,682,324.120.00
Total16,682,324.12

Thetotalnotepayablenotdueattheendoftheperiodis0.00yuan.

36.Accountspayable

(1)Listofaccountspayable

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Within1year280,210,281.65325,354,275.46
1-2years1,122,451.761,912,000.86
2-3years496,309.6896,543.25
3-4years44,629.531,093,369.87
4-5years983,598.3337,402.40
Over5years786,571.28975,010.06
Total283,643,842.23329,468,601.90

(2)Significantadvancefromcustomersagingoveroneyear

InRMB

ItemsBalanceinyear-endReason

Othernote:

None

37.Advanceaccount

(1)ListofAdvanceaccount

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Within1year968,394.67666,457.75
1-2years197,892.322,236,912.00
2-3years
Over3years639,024.58639,024.58
Total1,805,311.573,542,394.33

(2)Significantadvancefromcustomersagingoveroneyear

InRMB

ItemsBalanceinyear-endReason

38.Contractliabilities

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Good68,955.21279,631.27
Less:Contractualliabilitieschargedtoothernon-currentliabilities
Total68,955.21279,631.27

Amountandreasonsforthesignificantchangeinthebookvalueduringthereportingperiod

InRMB

ItemsAmountReason

39.PayableEmployeewage

(1)ListofPayrollpayable

InRMB

ItemsBalanceinyear-beginIncreaseinthisperiodPayableinthisperiodBalanceinyear-end
I.Short-termcompensation55,642,549.53235,951,646.92231,874,336.2159,719,860.24
II.Post-employmentbenefits-definedcontributionplans15,705,799.5915,705,799.59
III.Dismissalbenefits2,636,463.202,636,463.20
Total55,642,549.53254,293,909.71250,216,599.0059,719,860.24

(2)Short-termremuneration

InRMB

ItemsBalanceinyear-beginIncreaseinthisperiodDecreaseinthisperiodBalanceinyear-end
1.Wages,bonuses,allowancesand53,293,551.94211,994,691.05208,173,934.9757,114,308.03
subsidies
2.Employeewelfare41,093.208,393,472.908,434,566.10
3.Socialinsurancepremiums2,723,153.852,723,153.85
Including:Medicalinsurance2,254,940.972,254,940.97
Workinjuryinsurance175,636.12175,636.12
Maternityinsurance292,576.76292,576.76
4.Publicreservesforhousing7,339,217.347,339,217.34
5.Unionfundsandstaffeducationfee2,307,904.395,501,111.785,203,463.952,605,552.21
Total55,642,549.53235,951,646.92231,874,336.2159,719,860.24

(3)Definedcontributionplanslisted

InRMB

ItemsBalanceinyear-beginIncreaseinthisperiodDecreaseinthisperiodBalanceinyear-end
1.Basicold-ageinsurancepremiums13,082,445.9013,082,445.90
2.Unemploymentinsurance278,249.09278,249.09
3.Annuitypayment2,345,104.602,345,104.60
Total15,705,799.5915,705,799.59

Othernote:

None

40.TaxPayable

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
VAT6,334,093.50286,928.75
EnterpriseIncometax1,804,277.9511,219,726.43
IndividualIncometax866,274.38469,169.71
CityConstructiontax43,259.9048,751.30
Housepropertytax102,146.02102,146.02
Educationsurcharge31,608.8533,386.49
Stamptax18,966.4936,370.02
Landusetax0.002,043.30
Total9,200,627.0912,198,522.02

Othernote:

None

41.Otherpayable

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Otherpayable201,317,421.35156,118,440.42
Total201,317,421.35156,118,440.42

(1)Interestpayable

Notapplicable

Othernote:

(2)Dividendspayable

InRMB

ItemsBalanceinyear-endBalanceYear-beginning

(3)Otheraccountspayable

(1)Otheraccountspayablelistedbynatureoftheaccount

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
EngineeringEquipmentfund91,213,156.8932,713,413.76
Unitaccount51,681,042.5748,394,939.72
Deposit43,277,481.3836,130,306.12
Restrictivestockrepurchaseobligation0.007,844,373.00
Other15,145,740.5131,035,407.82
Total201,317,421.35156,118,440.42

(2)Othersignificantaccountspayablewithagingoveroneyear

InRMB

ItemsBalanceinyear-endReason

OthernoteNone

42.Liabilitiesclassifiedasholdingforsale

InRMB

ItemsBalanceinyear-endBalanceinyear-begin

Othernote:

43.Non-currentliabilitiesduewithin1year

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Leaseliabilitiesduewithinoneyear5,175,393.520.00
Total5,175,393.52

Othernote:

None

44.Othercurrentliabilities

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Didnotterminatetheconfirmationbillendorsement,discount27,523,903.580.00
Total27,523,903.58

Othernote:

None

45.Long-termborrowing

(1)ListofLong-termborrowing

InRMB

ItemsBalanceinyear-endBalanceinyear-begin
Mortgage-guaranteedloan683,016,243.25343,100,174.35
Less:Long-termborrowingsduewithin0.000.00
1year
Total683,016,243.25343,100,174.35

Descriptionofthelong-termloanclassificationOthernote,

46.Bondpayable

(1)Bondpayable

InRMB

ItemsBalanceyear-endYear-beginningbalance

(2)Changesofbondspayable(Notincludingtheotherfinancialinstrumentofpreferredstockandperpetualcapitalsecuritiesthatclassifyasfinancialliability

InRMB

NameofthebondBookvalueIssuedatePeriodIssueamountOpeningbalanceThecurrentissueWithdrawinterestatparOverflowdiscountamountPayincurrentperiodClosingbalance

Total

Total------

(3)Notetoconditionsandtimeofsharetransferofconvertiblebonds

(4)OtherfinancialinstrumentsthatareclassifiedasfinancialliabilitiesBasicsituationofotherfinancialinstrumentsoutstandingattheperiod-endsuchpreferredsharesandperpetualbondsChangesinfinancialinstrumentsoutstandingattheperiod-endsuchpreferredsharesandperpetualliabilitiesOthernote

47.Leaseliabilities

InRMB

ItemsBalanceyear-endYear-beginningbalance
leaseliabilities9,419,249.23
Less:Leaseliabilitiesduewithin1year-5,175,393.52
Total4,243,855.71

Othernote

Theaccruedinterestexpenseofleaseliabilitiesin2021isRMB475,000,whichisincludedinthefinancialexpense-interestexpense.

48.Long-termpayable

InRMB

ItemsBalanceyear-endYear-beginningbalance

(1)Statementoflong-termpayrollpayable

InRMB

ItemsBalanceyear-endYear-beginningbalance

Othernote:

(2)Specialpayable

InRMB

ItemsYear-beginningbalanceIncreaseDecreaseBalanceyear-endReason

Othernote:

49.Longtermpayrollpayable

(1)Statementoflong-termpayrollpayableNotapplicable

(2)ChangeofdefinedbenefitplansNotapplicableOthernote:

50.Estimatedliabilities

InRMB

ItemsBalanceinyear-endBalanceinyear-beginReason
Repaymentpayable30,741,055.00
Total30,741,055.00--

Othernote:

51.Deferredincome

InRMB

ItemsBeginningoftermIncreasedthistermDecreasedthistermEndoftermReason
GovernmentSubsidy110,740,322.2113,660,000.0013,939,029.06110,461,293.15
Total110,740,322.2113,660,000.0013,939,029.06110,461,293.15--

Detailsofgovernmentsubsidies:

InRMB

ItemsBeginningoftermNewsubsidyincurrentperiodAmounttransferredtonon-operationalincomeOtherincomerecordedinthecurrentperiodAmountofcostdeductedinthecurrentperiodOtherchangesEndoftermAsset-relatedorincome-related

Othernote:

Fordetailsofgovernmentsubsidiesincludedindeferredrevenue,pleaserefertoNoteXIV.2.Governmentsubsidies.

52..Othernon-currentliabilities

InRMB

ItemsBalanceyear-endYear-beginningbalance

Othernote:

53.Stockcapital

InRMB

Year-beginningbalanceChanged(+,-)Balanceinyear-end
IssuanceofnewshareBonussharesCapitalizationofpublicreserveOtherSubtotal
Totalofcapitalshares507,772,279.00-1,250,430.00-1,250,430.00506,521,849.00

Othernote:

Note:Thisyear,1,250,430.00restrictedsharesthathavebeengrantedbutnotyetunlockedwererepurchasedandcancelled,withareductionofRMB1,250,430.00,whichhasbeenverifiedbyPekingCertifiedPublicAccountants(specialgeneralpartnership),andthecapitalverificationreport(QXYZi(2021)No.0013)wasissued

onApril27,2021.

54.Otherequityinstruments

(1)Basicinformationontheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiod

(2)Movementoftheoutstandingotherfinancialinstruments,includingpreferredshares,perpetualbonds,etc.attheendofthereportingperiodOthernote:

55.Capitalreserves

InRMB

ItemsYear-beginningbalanceIncreaseinthecurrentperiodDecreaseinthecurrentperiodYear-endbalance
Sharepremium1,832,397,142.445,914,533.901,826,482,608.54
Othercapitalreserves135,117,216.09135,117,216.09
Total1,967,514,358.535,914,533.901,961,599,824.63

Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:

ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.

56.Treasurystock

InRMB

ItemsYear-beginningbalanceIncreaseinthecurrentDecreaseinthecurrentperiodYear-endbalance
Treasurystock7,525,438.207,525,438.200.00
Total7,525,438.207,525,438.20

Othernotes,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:

ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.

57.Othercomprehensiveincome

InRMB

ItemsYear-beginningAmountofcurrentperiodYear-endbalanc
AmountLess:Less:Less:After-taAfter-ta
balanceincurredbeforeincometaxAmounttransferredintoprofitandlossinthecurrentperiodthatrecogniedintoothercomprehensiveincomeinpriorperiodPriorperiodincludedinothercompositeincometransfertoretainedincomeinthecurrentperiodIncometaxexpensesxattributetotheparentcompanyxattributetominorityshareholdere
1.Othercomprehensiveincomethatcannotbereclassifiedinthelossandgaininthefuture115,367,833.873,237,349.34-847,238.36809,337.343,275,250.36118,643,084.23
Changesinfairvalueofinvestmentsinotherequityinstruments115,367,833.873,237,349.34-847,238.36809,337.343,275,250.36118,643,084.23
2.Othercomprehensiveincomereclassifiabletoprofitorlossinsubsequentperiods1,238,098.55-199,063.73-199,063.731,039,034.82
Translationdifferencesoffinancialstatementsdenominated1,238,098.55-199,063.73-199,063.731,039,034.82
Totalofothercomprehensiveincome116,605,932.423,038,285.61-847,238.36809,337.343,076,186.63119,682,119.05

Othernotesincludethevalidpartofgainandlossofacash-flowhedgeconvertedintoinitialamountofarbitrageditemsforadjustment:None

58.Specialreserves

InRMB

ItemsYear-beginningbalanceIncreaseinthecurrentperiodDecreaseinthecurrentperiodYear-endbalance

59.Surplusreserves

InRMB

ItemsYear-beginningbalanceIncreaseinthecurrentperiodDecreaseinthecurrentperiodYear-endbalance
Statutorysurplusreserve94,954,652.143,291,193.3398,245,845.47
Total94,954,652.143,291,193.3398,245,845.47

Notetosurplusreserve,includingthenotetoitsincrease/decreaseandthecause(s)ofitsmovementinthereportingperiod:

Note:TheincreaseamountinthecurrentperiodisRMB3,291,193.33,includingRMB3,175,360.75accruedaccordingto10%ofthecurrentnetprofitandRMB115,832.57accruedfromothercomprehensiveincomecarry-overretainedearnings.

60.Retainedprofits

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Retainedearningsbeforeadjustmentsattheyearbeginning86,912,390.5049,307,764.03
Retainedearningsafteradjustmentsattheyearend86,912,390.5049,307,764.03
Add:NetprofitattributabletoownersoftheCompanyfortheperiod61,162,384.2537,267,995.74
Less:Appropriationtostatutorysurplusreserve3,175,360.753,888,292.80
Commonstockdividendpayable15,195,655.47
Add:Othercomprehensiveearningsarecarriedforwardtoretainedearnings1,042,493.214,224,923.53
Retainedprofitsattheperiodend130,746,251.7486,912,390.50

Asregardsthedetailsofadjustedthebeginningundistributedprofits

(1)AstheretroactiveadjustmentonEnterpriseAccountingStandardsanditsrelatednewregulations,theaffectedbeginningundistributedprofitsareRMB0.00.

(2)Asthechangeoftheaccountingpolicy,theaffectedbeginningundistributedprofitsareRMB0.00.

(3)Asthecorrectionofsignificantaccountingerror,theaffectedbeginningundistributedprofitsareRMB0.00.

(4)Asthechangeofconsolidationscopecausedbythesamecontrol,theaffectedbeginningundistributedprofitsareRMB0.00.

(5)OtheradjustmentofthetotalaffectedbeginningundistributedprofitsareRMB0.00.

61.Businessincome,Businesscost

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
IncomeCostIncomeCost
Mainbusiness2,265,990,629.901,900,247,328.792,097,432,885.061,808,092,705.48
Otherbusiness27,757,262.168,272,084.4911,531,802.746,205,689.54
Total2,293,747,892.061,908,519,413.282,108,964,687.801,814,298,395.02

Whetherthenetprofitbeforeandafterdeductingnon-recurringgainsandlossesisnegativeafteraudit

□Yes√NoIncome-relatedinformation:

InRMB

TypeDivision1Division2Total
Ofwhich
Propertyleasemanagementandothers111,568,500.55139,325,762.71
Textile54,932,578.5854,932,578.58
Polarizer2,099,489,550.772,099,489,550.77
Ofwhich
Domestic2,039,625,757.162,039,625,757.16
Overseas254,122,134.90254,122,134.90
Ofwhich
Ofwhich
Ofwhich
Ofwhich
Ofwhich

Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:

TheincomecorrespondingtotheperformanceobligationsthathavenotbeenperformedorhavebeenperformedincompletelybutthecontracthasbeensignedattheendofthereportingperiodisRMB0.00,ofwhichRMB0.00isexpectedtoberecognizedasincomeintheyear,RMB0.00isexpectedtoberecognizedasincomeintheyear,andRMB0.00isexpectedtoberecognizedasincomeintheyear.Othernote:

62.Taxesandsurcharges

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Urbanconstructiontax1,625,005.70718,695.23
Educationsurcharge1,169,628.61517,483.70
Propertytax5,826,834.914,338,584.18
Other1,902,078.871,772,362.54
Total10,523,548.097,347,125.65

Othernote:

63.Salesexpenses

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Wage18,266,837.8112,958,215.67
Businessexpenses1,256,926.46668,407.23
Salesservice12,684,139.2812,697,476.62
Propertyinsurance2,716,981.13
Other3,048,451.712,320,131.35
Total37,973,336.3928,644,230.87

Othernote:

None

64.Administrativeexpenses

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Wage80,805,949.9774,790,949.11
Depreciationoffixedassets10,728,532.589,794,203.66
Waterandelectricity2,123,594.282,576,447.96
Intermediaryorgan8,120,482.283,271,775.61
Intangibleassetsamortization5,030,106.231,612,363.59
Travelexpenses468,553.20408,221.21
Officeexpenses1,192,408.92946,055.89
Businessentertainment1,754,789.06615,454.09
Lawsuitexpenses914,353.81144,161.32
Repaircharge2,057,702.251,366,609.60
Propertyinsurance648,821.25380,689.81
Other8,243,536.329,188,002.51
Total122,088,830.15105,094,934.36

Othernote:

None

65.R&Dcosts

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Wage15,697,764.5913,177,489.03
Material83,197,051.5649,679,847.18
Depreciation3,326,098.792,984,978.79
Fuel&Power976,547.621,017,795.21
Travelexpenses177,340.24226,949.44
Other133,961.7373,904.57
Total103,508,764.5367,160,964.22

Othernote:

None

66.FinancialExpenses

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Interestexpenses24,113,442.394,175,380.96
Less:Interestcapitalized9,807,167.263,940,565.29
Interestincome-1,655,853.59-3,702,735.59
Exchangeloss-20,976,430.838,108,404.80
Discountinterestonacceptancebill1,390,467.410.00
Feesandother6,805,197.793,647,403.40
Total-130,344.098,287,888.28

Othernote:

None

67.Otherincome

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
AmortizationforsubsidiesfornewproductionlinesandpurchaseofequipmentforthePhaseIIprojectofpolarizersforTFT-LCD3,000,000.003,000,000.00
AmortizationoffundsforthepilotprojectofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince2,500,000.082,500,000.00
AmortizationoflocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6)1,500,000.001,500,000.00
AmortizationofsubsidyfundsforindustrializationprojectofpolarizersforTFT-LCD1,299,999.961,300,000.00
ShenzhenMunicipalFinanceCommittee’spolarizerindustrializationprojectforsuper-sizedTVs1,250,000.000.00
AmortizationofnationalsubsidyforTFT-LCDpolarizerphaseIIproject(Line6)1,000,000.001,000,000.00
Amortizationofsubsidyfundsforthenarrowline(Line5)ofthefirst-phaseprojectofpolarizerforTFT-LCD500,000.04500,000.00
AmortizationofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory500,000.00500,000.00
AmortizationofsubsidyfundsforR&Dequipmentforkeytechnologiesofopticalcompensationfilmsforpolarizers500,000.04500,000.00
ShenzhenMunicipalAirEnvironmentQualityImprovementSpecialFundSubsidy494,931.57468,931.57
2021SpecialMajorProjectAwardandSubsidySupportPlanforTechnologicalTransformationandDoubling367,666.680.00
Amortizationoffundingfortechnologycenterconstruction300,000.00300,000.00
Amortizationofsubsidiesforpurchaseofimportedequipmentandtechnology175,090.20175,090.20
Amortizationofspecialfundsfortextiles142,857.16142,857.16
Amortizationofcapitalsubsidyforchange&renovationofoldelevators142,255.72142,255.72
AmortizationofinnovativeandentrepreneurialfundsforthefirstphaseoftheTFT-LCDpolarizerproject50,000.0450,000.00
AmortizationofinnovationandentrepreneurshipfundsofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory50,000.0450,000.00
AmortizationofinnovativeandentrepreneurialfundsforthesecondphaseoftheTFT-LCDpolarizerproject(Line6)50,000.0450,000.00
Dyeingprojecttechnicaltransformationsubsidy39,000.000.00
Amortizationofenergy-savingrenovationsubsidyfunds27,172.7029,642.93
Subsidiesforinvestmentprojectsinspecialtechnologicaltransformationanddoublingfortechnologicaltransformationin202019,000.0011,083.33
Fundingforkeytechnologyresearchanddevelopmentofpolarizersforultra-thinIPSsmartphoneterminals16,666.670.00
AmortizationofFundsforIntroducingAdvancedTechnology14,388.1214,388.10
ShenzhenBureauofIndustryandInformationTechnology's2021IndustrialEnterprisesExpansionCapacityIncentiveProjectSubsidy2,590,000.000.00
ShenzhenScienceandTechnologyInnovationCommittee2020EnterpriseR&DSubsidy1,018,000.000.00
HeadquartersEconomicComprehensiveEconomicContributionAward(FutianDistrictEnterpriseDevelopmentCenter)500,000.000.00
ShenzhenPingshanDistrictFinance500,000.000.00
Bureau2019PingshanDistrictHarmoniousLaborRelationsEnterpriseAwardFund
Thesecondbatchoffundingofthe2020ScienceandTechnologyInnovationSpecialFundofShenzhenPingshanDistrictFinanceBureau(standardizedfunding)360,000.000.00
Thesecondbatchofspecialfundsofscientificandtechnologicalinnovationin2020ofShenzhenPingshanDistrictFinanceBureau(High-techEnterpriseRecognitionAward)300,000.000.00
StableJobSubsidy118,832.69160,712.86
MunicipalEcologicalEnvironmentBureauCleanerProductionIncentiveSupportSubsidy100,000.000.00
Thesixthbatchofpre-jobtrainingsubsidiesbyLonggangDistrictofHumanResourcesBureau68,000.000.00
ShenzhenPingshanDistrictHumanResourcesBureau’sone-timesubsidyforenterprisestoabsorbandfilepoorlaborers60,000.000.00
ReceivedsubsidyfromLonggangDistrictHumanResourcesBureauforwork-for-training27,000.000.00
SubsidyfromShenzhenFutianDistrictHumanResourcesBureauforwork-for-worktraining16,500.000.00
SubsidyfromLuohudistrictforwork-for-worktraining15,500.000.00
EmployeematernitybenefitsreturnedbySocialSecurityAdministration10,592.5332,609.51
UnpaidVAT(inputplusdeduction)9,899.540.00
ThesecondbatchofspecialfundsforscientificandtechnologicalinnovationbyShenzhenPingshanDistrictFinanceBureauin2020(IntellectualPropertyAward)4,800.000.00
Taxofficefeerefund5,225.5124,898.73
Sewagefeerefund0.00597,362.55
ShenzhenIndustrialandCommercialElectricityCostReductionSubsidy0.006,952,943.71
SocialSecurityAdministrationpremiumrefund0.001,815.00
PingshanDistrictFinanceBureau'sSecondBatchofEpidemicSubsidies759.00
2019Water-savingCarrierAwardFundofShenzhenWaterAffairsBureau374,102.00
ShenzhenPingshanDistrictFinanceBureau2018HarmoniousLaborRelationsEnterpriseAwardFund1,000,000.00
ShenzhenScienceandTechnologyInnovationCommittee2018EnterpriseR&DSubsidy1,278,000.00
PingshanDistrictScienceandTechnologyInnovationBureau's2019High-techEnterpriseRecognitionAward50,000.00
PingshanDistrictSubsidyforWork-for-Training1,645,500.00
ShenzhenPingshanDistrictHumanResourcesBureautrialtrainingsubsidy111,600.00
ShenzhenPingshanDistrictFinanceBureausubsidysupportforthesteadygrowthofforeigntradeinPingshanDistrictin20201,200,000.00
ReceivedrefundofunemploymentbenefitsforcompaniesaffectedbytheepidemicfromtheSocialSecurityBureau2,709,874.84
MarketSupervisionAdministration'sSecondBatchofPatentSubsidiesin20189,000.00
Governmentsubsidizesforepidemicprotectivesupplies10,000.00
CulturalTourismStabilizationSupportSubsidy100,000.00
Thefirstbatchofspecialfundsfor966,000.00
scientificandtechnologicalinnovationin2019
ReceivedsubsidiesfromthePublicEmploymentServiceCenterforstabilizingjobs1,425.20
ReceivedtherewardfortheepidemicpreventioneffectfromtheBureauofIndustryandInformationTechnology20,000.00
Receivedsubsidyforhousingepidemicpreventionat145#FenghuangRoadfromShenzhenLuohuDistrictHousingandConstructionBureau5,638.00
ReceivedtheepidemicpreventionsubsidyforShenzhenNo.52TextileCompound,Tianbei2ndRoadfromtheHousingandConstructionBureauofLuohuDistrictShenzhen8,531.45
Urbanconstructiontaxandsurchargeshalved1,047.51
Stampdutyhalved183.32
LuohuDistrictEpidemicPreventionSubsidy10,000.00

68.Investmentincome

InRMB

ItemsAmountofthisperiodAmountoflastperiod
Long-termequityinvestmentreturnsaccountedforbyequitymethod33,984.66-3,446,613.86
Investmentincomefromthedisposaloflong-termequityinvestment20,779.930.00
Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments2,551,896.022,946,592.79
Structureddepositinterest2,749,600.1818,231,107.84
Interestincomeontermdepositsover1year2,350,000.00853,205.47
Netmonetarygains14,956,752.274,015,378.50
Total22,663,013.0622,599,670.74

Othernote:

None

69.Netexposurehedgingincome

InRMB

ItemsAmountofthisperiodAmountoflastperiod

Othernote:

70.Gainsonthechangesinthefairvalue

InRMB

SourceAmountofthisperiodAmountoflastperiod
Transactionfinancialassets536,575.34
Othernon-currentfinancialassets2,150,943.402,150,943.40
Total2,150,943.402,687,518.74

Othernote:

None

71.Creditimpairmentloss

InRMB

ItemsAmountofthisperiodAmountoflastperiod
Lossofbaddebtsinotherreceivables-7,201,148.60-1,828,410.68
Lossofbadnotereceivable-280,565.00-84,490.74
Lossofbadaccountsreceivable2,500,153.07-8,481,632.23
Total-4,981,560.53-10,394,533.65

Othernote:

72.Lossesfromassetimpairment

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
II.LossofinventorypriceandImpairmentofcontractperformancecosts-83,475,951.11-65,942,828.90
V.Impairmentlossoffixedassets-32,769.22-6,469,648.73
Total-83,508,720.33-72,412,477.63

Othernote:

73.Assetdisposalincome

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
I.Gains&lossesonforeigninvestmentinfixedassets-597,458.77276,544.73

74.Non-Operationincome

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiodRecordedintheamountofthenon-recurringgainsandlosses
Insurancecompensation3,477,438.603,477,438.60
Payablewithoutpayment1,371,678.99
Liquidationprofitandloss17,140,459.6017,140,459.60
Other667,888.4473,983.39667,888.44
Total21,285,786.641,445,662.38

Governmentsubsidiesrecordedintocurrentprofitsandlosses:

InRMB

ItemsIssuingbodyIssuingreasonNatureWhethertheimpactofsubsidiesonthecurrentprofitandlossWhetherspecialsubsidiesAmountofcurrentperiodAmountofpreviousperiodAssets-related/income-related

Othernote:

75.Non-currentexpenses

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiodTheamountofnon-operatinggains&lossed
Non-currentassetDispositionloss369,187.123,315.15369,187.12
Fineexpenses1,309,172.27115,314.201,309,172.27
Other7,903.9619,791.927,903.96
Total1,686,263.35138,421.27

Othernote:

76.Incometaxexpenses

(1)Incometaxexpenses

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Currentincometaxexpense8,174,724.288,422,038.43
Deferredincometaxexpense2,944,072.68-218,317.45
Total11,118,796.968,203,720.98

(2)Reconciliationofaccountprofitandincometaxexpenses

InRMB

ItemsAmountofcurrentperiod
Totalprofits86,233,463.16
Currentincometaxexpenseaccountedbytaxandrelevantregulations21,558,365.79
Influenceofdifferenttaxratesappliedbysomesubsidiaries-7,491,633.67
Non-deductiblecosts,expensesandlosses4,571,839.81
Taximpactbytheunrecognizeddeductiblelossesanddeductibletemporarydifferencesinpreviousyears8,059,643.49
Profitandlossofjointventureandassociatedenterprisesaccountedforbyequitymethod-53,103.78
Taximpactofresearchanddevelopmentfeeplusdeduction-15,526,314.68
Incometaxfee11,118,796.96

Othernote

77.OthercomprehensiveincomeRefertothenotes57

78.Supplementaryinformationtocashflowstatement

(1)Othercashreceivedrelevanttooperatingactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
LetterofCreditDeposit35,875,977.7495,971,397.61
Interestincome1,655,853.593,702,735.59
GovernmentSubsidy19,363,739.4212,029,059.97
Currentaccount31,729,758.7811,704,807.26
Total88,625,329.53123,408,000.43

Notetoothercashreceivedinconnectionwithoperatingactivities:None

(2)Othercashpaidrelatedtooperatingactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Paymentofcreditdeposit164,509,022.4150,257,183.69
Cash48,012,370.6837,855,834.17
Currentaccountandother12,867,319.889,104,639.66
Total225,388,712.9797,217,657.52

Notetoothercashpaidinconnectionwithoperatingactivities:None

(3)Cashreceivedrelatedtootherinvestmentactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Structureddeposits,financialproducts,principalandincome1,128,309,484.613,112,161,370.37
L/Cmarginforpurchaseofline7equipment126,799,633.00
Creditdepositfornon-Line7equipment1,900,000.00
Total1,128,309,484.613,240,861,003.37

Notetoothercashreceivedrelatedtootherinvestmentactivities:None

(4).Cashpaidrelatedtootherinvestmentactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Structureddeposits,financialproducts,principalandincome965,000,000.003,004,000,000.00
L/Cmarginforpurchaseofline7equipment2,150,000.00
Creditdepositfornon-Line7equipment1,900,000.00
Equitytransactionexpenses15,275.20
Total965,000,000.003,008,065,275.20

NotetootherCashpaidrelatedtootherinvestmentactivities

(5)Othercashreceivedinrelationtofinancingactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod

(6)Cashpaidrelatedwithfinancingactivities

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Restrictedstockofstockrepurchaseincentiveobject7,820,298.309,344,136.30
Leasepayment4,817,974.70
Total12,638,273.009,344,136.30

NotetootherCashpaidrelatedwithfinancingactivities:

79.SupplementInformationforcashflowstatement

(1)SupplementInformationforcashflowstatement

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
I.Adjustingnetprofittocashflowfromoperatingactivities----
Netprofit75,114,666.2043,497,645.15
Add:Impairmentlossprovisionofassets83,508,720.3382,807,011.28
Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets182,116,694.00117,440,111.32
DepreciationofUserightassets4,540,987.37
Amortizationofintangibleassets5,030,106.231,612,363.59
AmortizationofLong-termdeferredexpenses1,171,163.32582,518.72
Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets-597,458.77-276,544.73
Fixedassetsscraploss369,187.123,315.15
Lossonfairvaluechanges-2,150,943.40-2,687,518.74
Financialcost14,306,275.13455,850.38
Lossoninvestment-22,663,013.06-22,599,670.74
Decreaseofdeferredincometaxassets1,534,828.48374,601.17
Increasedofdeferredincometaxliabilities2,500,994.33-10,802,679.08
Decreaseofinventories-270,089,816.70-39,880,044.30
Deceaseofoperatingreceivables-58,547,894.61-184,426,504.09
IncreasedofoperatingPayable-25,563,036.8515,830,477.68
Other4,981,560.53
Netcashflowsarisingfromoperatingactivities-4,436,980.351,930,932.76
II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows:--
Conversionofdebtintocapital
Convertibleloanduewithin1year
Financingoffixedassetsleased
3.Movementofcashandcashequivalents:----
Endingbalanceofcash302,408,433.72278,337,236.95
Less:Beginningbalanceofcashequivalents278,337,236.95268,646,588.18
Add:Endbalanceofcashequivalents
Less:Beginningbalanceofcashequivalents
Netincreaseofcashandcashequivalent24,071,196.779,690,648.77

(2)NetCashpaidofobtainingthesubsidiary

InRMB

Amount
Ofwhich:--
Ofwhich:--
Ofwhich:--

Othernote:

(3)NetCashreceiveofdisposalofthesubsidiary

InRMB

Ofwhich:--
Ofwhich:--
Ofwhich:--

Othernote:

(4)Componentofcashandcashequivalents

InRMB

ItemsYear-endbalanceYear-beginningbalance
I.Cash302,438,856.00278,337,236.95
Including:Cashathand792.644,127.10
Demandbankdeposit302,407,641.08271,085,025.10
Demandothermonetaryfunds7,248,084.75
III.Balanceofcashandcashequivalentsattheperiodend302,408,433.72278,337,236.95

Othernote:

80.Noteofstatementofchangesintheowner'sequitySpecifythedescriptionoftheitem"others"andtheadjustedamountofthebalanceattheendoflastyear:

81.Theassetswiththeownershiporuserightrestricted

InRMB

ItemsBookvalueattheendofthereportingperiodCauseofrestriction
Fixedassets243,106,926.00Mortgage
Intangibleassets33,875,655.97Mortgage
Total276,982,581.97--

Othernote:

82.Foreigncurrencymonetaryitems

(1)Foreigncurrencymonetaryitems

InRMB

ItemsClosingforeigncurrencybalanceExchangerateClosingconverttoRMBbalance
Monetaryfunds----
Including:USD3,396,814.976.375721,657,073.20
Euro
HKD806,319.920.8176659,247.17
Yen15,363,481.000.0554851,136.85
Accountpayable----
Including:USD9,987,772.576.375763,679,041.57
Euro
HKD
Prepayments
Including:USD588,809.236.37573,754,071.01
Yen30,197,869.000.05541,673,414.91
Otherreceivables
Including:USD37,399.026.3757238,444.93
accountspayable
Including:USD4,122,038.216.375726,280,879.02
Yen3,043,388,138.000.0554168,649,353.67
Otherpayables
Including:USD676,686.006.37574,314,346.93
Yen3,381,984.000.0554187,361.91
Euro22,500.007.2197162,443.25

Othernote:

(2)Notetooverseasoperatingentities,includingimportantoverseasoperatingentities,witchshouldbedisclosedaboutitsprincipalbusinessplace,functioncurrencyforbookkeepingandbasisforthechoice.Incaseofanychangeinfunctioncurrency,thecauseshouldbedisclosed.

□Applicable√Notapplicable

83.HedgingArbitrageAccordingtoarbitragecategorytodisclosearbitrageitem,relevantarbitragetoolsandthearbitragedriskqualitativeandquantitativeinformation:

84.Governmentsubsidies

(1)Governmentsubsidiesconfirmedincurrentperiod

InRMB

ItemsAmountProjectAmountincludedincurrentprofitandloss
Fundingsubsidyforchangeandrenovationofoldelevators720,241.51Otherincome142,255.72
Textilespecialfunds142,857.09Otherincome142,857.16
ShenzhenSpecialFundSubsidyforAtmosphericEnvironmentQualityImprovement-ShenzhenBeautyCentury442,000.00Otherincome52,000.00
SubsidyforthetechnicaltransformationprojectofdyeingequipmentbytheBureauofIndustryandInformationTechnology91,000.00Otherincome39,000.00
SubsidyfundsforindustrializationprojectofpolarizersforTFT-LCD433,333.39Otherincome1,299,999.96
Subsidyfundsforthenarrowline(Line5)ofthefirst-phaseprojectofpolarizerforTFT-LCD499,999.96Otherincome500,000.04
Amortizationofsubsidiesforpurchaseofimportedequipmentandtechnology151,746.19Otherincome175,090.20
InnovativeandentrepreneurialfundsforthefirstphaseoftheTFT-LCDpolarizerproject49,999.94Otherincome50,000.04
Introducingadvancedtechnologyfunding14,388.09Otherincome14,388.12
InnovationandentrepreneurshipfundsofShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory162,499.96Otherincome50,000.04
Fundingfortechnologycenterconstruction975,000.00Otherincome300,000.00
ShenzhenPolarizingMaterialsandTechnologyEngineeringLaboratory1,625,000.00Otherincome500,000.00
SubsidyfundforR&Dequipmentofkeytechnologyofopticalcompensationfilmforpolarizer2,624,999.96Otherincome500,000.04
LocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6)9,750,000.00Otherincome1,500,000.00
FundsforthepilotprojectofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince16,249,999.92Otherincome2,500,000.08
LocalmatchingfundsforthesecondphaseofTFT-LCDpolarizerproject(Line6)6,500,000.00Otherincome1,000,000.00
SubsidiesfornewproductionlinesandpurchaseofequipmentforthePhaseIIprojectofpolarizersforTFT-LCD19,500,000.00Otherincome3,000,000.00
InnovativeandentrepreneurialfundsforthesecondphaseoftheTFT-LCDpolarizerproject(Line6)324,999.96Otherincome50,000.04
Investmentfundswithinthecentralbudgetofthepolarizerindustrializationprojectforsuper-largeTVs(Line7)28,750,000.00Otherincome1,250,000.00
Fundingforkeytechnologyresearchanddevelopmentofpolarizersforultra-thinIPSsmartphoneterminals1,983,333.33Otherincome16,666.67

ShenzhenMunicipalFinanceCommittee(2018N007MajorResearchanddevelopmentofkeytechnologiesforhigh-performancepolarizersforlarge-sizedisplaypanels)

6,000,000.00Otherincome
ShenzhenSpecialFundSubsidyforAtmosphericEnvironmentQualityImprovement-SAPOPhotoelectric147,643.86Otherincome442,931.57
Subsidiesforinvestment159,916.67Otherincome19,000.00
projectsinspecialtechnologicaltransformationfortechnologicaltransformationanddoublingin2020
FundingbyShenzhenMunicipalBureauofFinance2020N028Keytechnologyresearchanddevelopmentprojectoflow-colorpolarizedcircularpolarizerforfixed-curvatureAMOLED2,500,000.00Otherincome
Awardssupportby2021specialmajorprojectsoftechnologicaltransformationanddoubling10,662,333.32Otherincome367,666.68
Subsidyfundsforenergy-savingrenovationOtherincome27,172.70

(2)Governmentsubsidyreturn

□Applicable√NotapplicableOthernote:

85.Other

(1)ArbitrationmattersbetweentheCompanyandJinjiangGroupAttheendof2016,theCompanyintroducedJinjiangGroupasastrategicinvestorforthecapitalincreaseandshareexpansionofSAPOPhotoelectric.TheCompany,SAPOPhotoelectric,JinjiangGroupandHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership),alimitedpartnershipestablishedbytheformerJinjiangGroupastheactualcontroller,jointlysignedtheCooperationAgreement.JinjiangGroupmadeacommitmenttotheperformanceofSAPOPhotoelectricfrom2017to2019,andJinjiangGrouppromisedthatifthepromisedincomeandnetprofitwerenotfulfilled,itwouldmakeadifferencebetweenthepromisednetprofitandtheactualprofit.In2018and2019,JinjiangGroupfailedtofulfillitsperformancecommitmentsasagreed,andtheperformancecompensationin2018wasreceivedbytheCompanyin2019asagreed,totalingRMB197,268,700;Fortheperformancecompensationin2019,JinjiangGroupbelievesthatitcan'tleadtheoperationandmanagementofSAPOPhotoelectric,whichleadstothefailuretorealizethecontractualpurposeoftheCooperationAgreement,andappliestoShenzhenCourtofInternationalArbitrationforarbitration.OnMarch25,2021,thearbitrationtribunalmadethefollowingrulingonthiscase:(I)Theapplicantisexemptedfromtheperformancecompensationobligationin2019agreedinArticle3.1oftheCooperationAgreement,anddoesnotneedtopaySAPOPhotoelectricthecompensationfortheperformancedifferencein2019ofRMB244,783,800;(II)ThearbitrationfeeofRMB2,682,011andtheactualexpensesofthearbitratorofRMB8,000in

thiscaseshallbebornebytheapplicant;(III)Otherarbitrationclaimsoftheapplicantarenotsupported.Thisawardshallbefinalandtakelegaleffectfromthedateitismade.

(2)ShenzhenXieliAutomobileEnterpriseCo.,Ltd.(propertynotyetdisposedof)ShenzhenXieliAutomobilCo.,Ltd.isaSino-foreignjointventureinvestedbytheCompanyandHongKongXieliMaintenanceCo.Ltd.in1981,witharegisteredcapitalofRMB3.12million,50%ofwhoseequityisheldtheCompany.TheoperatingperiodoftheCompanyendedin2008,anditsbusinesslicensewasrevokedin2014.ThemainassetsoftheCompanyarerealestate.TheindustrialandcommerciallicenseofShenzhenXieliwascancelledinMarch2020,buttherearestillthreepropertiesunderitsname,thedisposalofwhichisrequiredtoberesolvedafterfurtherconsultationbetweentheshareholdersofbothparties.OnJuly26,2021,theCompanyfiledalawsuitwithYantianDistrictPeople'sCourtinShenzhenCity,GuangdongProvincetorevokethecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulationonMarch9,2020,onwhichthecourtgaveajudgmentonNovember21,2021torevokethecancellationofShenzhenXieliAutomobileEnterpriseCo.,Ltd.approvedbyShenzhenAdministrationforMarketRegulation.VIII.Changesofmergescope

1.Businessmergernotundersamecontrol

(1)Businessmergernotundersamecontrolinreportingperiod

InRMB

NameTimeandplaceofgainingthestockrightCostgainingthestockrightsProportionofstockrightsWaytogainthestockrightsPurchasedateRecognitionbasisofpurchasedateIncomeofacquireeduringthepurchasedatetoperiod-endNetprofitsofacquireeduringthepurchasedatetoperiod-end

Othernote:

(2)CombinedcostandGoodwill

InRMB

Othernote

(3)TheidentifiableassetsandliabilitiesofacquireeatpurchasedateInRMB

InRMB

FairvalueofthepurchasedateBookvalueofthepurchasedate

Othernote

(4)Theprofitorlossfromequityheldbythedatebeforeacquisitioninaccordancewiththefairvaluemeasuredagain、Whetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizeenterprisesmergerandgainingthecontrolduringthereportingperiod

□Yes√No

(5)NotetomergercouldnotbedeterminedreasonableconsiderationorIdentifiableassets,Fairvalueofliabilitiesoftheacquireeatacquisitiondateorclosingperiodofthemerge

(6)Othernote

2.Businesscombinationunderthesamecontrol

(1)BusinesscombinationunderthesamecontrolduringthereportingperiodNotapplicableOthernote:

(2)CombinationcostNotapplicable

Othernote:

(3)ThebookvalueoftheassetsandliabilitiesofthemergedpartyonthedateofconsolidationNotapplicableOthernote:

3.CounterpurchaseBasicinformationoftrading,thebasisoftransactionsconstitutecounterpurchase,theretainassets,liabilitiesofthelistedcompanieswhetherconstitutedabusinessanditsbasis,thedeterminationofthecombinationcosts,theamountandcalculationofadjustedrightsandinterestsinaccordancewiththeequitytransactionprocess.Notapplicable

4.ThedisposalofsubsidiaryWhetherthereisasingledisposaloftheinvestmenttosubsidiaryandlostcontrol

□Yes√No

Whethertherearemultipletransactionsstepbystepdisposetheinvestmenttosubsidiaryandlostcontrolinreportingperiod

□Yes√No

5.OtherreasonsforthechangesincombinationscopeNotetothechangeintheconsolidationscope(e.g.newsubsidiaries,liquidationsubsidiaries,etc.)causedbyotherreasonsandrelevantinformation:

6.OtherIX.Equityinotherentities

1.Equityinsubsidiary

(1)Thestructureoftheenterprisegroup

SubsidiaryMainoperationRegisteredplaceBusinessnatureShare-holdingratioAcquiredway
DirectlyIndirectly
ShenzhenLishiIndustryDevelopmentCo.,LtdShenzhenShenzhenDomestictrade,PropertyManagement100.00%Establish
ShenzhenHuaqiangHotelShenzhenShenzhenAccommodation,restaurants,businesscenter;100.00%Establish
ShenzhenShenfangRealEstateManagementCo.,Ltd.ShenzhenShenzhenPropertyManagement100.00%Establish
ShenzhenBeautyCenturyGarmentCo.,Ltd.ShenzhenShenzhenProductionoffullyelectronicjacquardknittingwholeshape100.00%Establish
ShenzhenShenfangSungangRealEstateManagementCo.,Ltd.ShenzhenShenzhenPropertyManagement100.00%Establish
SAPOPhotoelectricShenzhenShenzhenPolarizerproductionand60.00%
sales
ShenzhenShengjinlianTechnologyCo.,Ltd.ShenzhenShenzhenPolarizerproductionandsales100.00%Establish
Shengtou(Hongkong)Co.,Ltd.HongkongHongkongSalesofpolarizer100.00%Establish

Explanationthattheshareholdingratioinsubsidiariesisdifferentfromthevotingrightratio:NoneBasisforholdinghalforlessvotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfvotingrightsbutnotcontrollingtheinvestee:NoneFortheimportantstructuredsubjectsincludedinthescopeofconsolidation,thecontrolbasisis:NoneBasisfordeterminingwhetherthecompanyisanagentoraprincipal:NoneOthernote:Note

(2)Significantnotwholly-ownedsubsidiaries

InRMB

NameHoldingproportionofnon-controllinginterestProfitorlossattributabletonon-controllinginterestDividenddeclaredtonon-controllinginterestClosingbalanceofnon-controllinginterest
SAPOPhotoelectric40.00%15,173,715.281,142,495,431.83

Othernote:

None

(3)Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries

InRMB

SubsidiariesClosingbalanceBeginningbalance
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentLiabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentLiabilitiesTotalliabilities
SAPOPhotoelectric1,622,715,947.382,581,716,148.264,204,432,095.64521,127,167.55827,066,348.511,348,193,516.061,493,320,590.482,177,130,756.683,670,451,347.16399,975,943.39452,171,112.38852,147,055.77

InRMB

SubsidiariesAmountofcurrentperiodAmountofpreviousperiod
OperatingNetprofitTotalCashflowOperatingNetprofitTotalCashflow
revenuecomprehensiveincomefromoperatingactivitiesrevenuecomprehensiveincomefromoperatingactivities
SAPOPhotoelectric2,126,851,011.6337,934,288.1937,934,288.19-11,450,771.901,961,577,740.3716,768,253.2916,768,253.29-1,921,942.93

Othernote:

None

(4)SignificantrestrictionsofusingenterprisegroupassetsandpayoffenterprisegroupdebtNone

(5)ProvidefinancialsupportorothersupportforstructureentitiesincorporateintothescopeofconsolidatedfinancialstatementsNoneOthernote:

None

2.ThetransactionoftheCompanywithitsowner’sequitysharechangedbutstillcontrollingthesubsidiary

(1)Notetoowner’sequitysharechangedinsubsidiaryNone

(2)Thetransaction’sinfluencetoequityofminorityshareholdersandattributabletotheowner'sequityoftheparentcompanyOthernoteNone

3.Equityinjointventurearrangementorassociatedenterprise

(1)Significantjointventurearrangementorassociatedenterprise

NameofSubsidiaryMainPlacesofOperationRegistrationPlaceNatureofBusinessShareholdingRatio(%)Theaccountingtreatmentofinvestmentinassociates
directindirect
Jointventure:
ShenzhenGuanhuaPrinting&ShenzhenShenzhenPropertyleasing50.16%Equitymethod
DyeingCo.,Ltd.
AnhuiHuapengTextileCo.,Ltd.AnhuiAnhuiManufacturing50.00%Equitymethod
Associatedenterprise
ShenzhenChanglianfaPrintinganddyeingCompanyShenzhenShenzhenPropertyleasing40.25%Equitymethod
JordanGarmentFactoryJordanJordanManufacturing35.00%Equitymethod
YehuiInternationalCo.,Ltd.HongkongHongkongManufacturing22.75%Equitymethod

Explanationthattheshareholdingratiointhejointventureorassociatedenterpriseisdifferentfromthevotingrightratio:

Basisforholdinglessthan20%ofvotingrightsbutwithsignificantinfluence,orholding20%ormoreofvotingrightsbutwithoutsignificantinfluence:

(2)TheSummarizedFinancialInformationofJointVentures

InRMB

Year-endbalance/AmountofcurrentperiodYear-beginningbalance/Amountofpreviousperiod
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.
Currentassets37,787,147.7219,854,144.21
Non-currentassets228,639,403.03241,137,964.49
Totalassets266,426,550.75260,992,108.70
Currentliabilities18,194,214.4012,261,343.60
Non-currentliabilities35,190,853.6937,356,444.69
Totalliabilities53,385,068.0949,617,788.29
Attributabletoshareholdersoftheparentcompany213,041,482.67211,374,320.41
Shareofnetassetscalculatedbystake106,861,607.70106,025,359.12
--Goodwill21,595,462.4421,595,462.44
--Other285,343.61285,343.61
Operatingincome21,404,639.2914,623,800.97
Financialexpenses-174,304.72-39,339.28
Incometaxexpenses499,490.10-2,118,023.83
Netprofit614,155.44-3,422,861.88
Totalcomprehensiveincome614,155.44-3,422,861.88

Othernote

(3)Mainfinancialinformationofsignificantassociatedenterprise

InRMB

Year-endbalance/AmountofcurrentperiodYear-beginningbalance/Amountofpreviousperiod

Othernote

(4)Summaryfinancialinformationofinsignificantjointventureorassociatedenterprise

InRMB

Year-endbalance/AmountofcurrentperiodYear-beginningbalance/Amountofpreviousperiod
Jointventure:----
Totalamountoftheproratacalculationofthefollowingitems----
Associatedenterprise:----
Totalamountoftheproratacalculationofthefollowingitems----

Othernote

(5)NotetothesignificantrestrictionsoftheabilityofjointventureorassociatedenterprisetransferfundstotheCompany

(6)TheexcesslossofjointventureorassociatedenterpriseOthernote

(7)Theunrecognizedcommitmentrelatedtojointventureinvestment

(8)Contingentliabilitiesrelatedtojointventureorassociatedenterpriseinvestment

4.Significantcommonoperation

5.EquityofstructureentitynotincludinginthescopeofconsolidatedfinancialstatementsRelatednotestostructureentitynotincludinginthescopeofconsolidatedfinancialstatements

6.OtherX.RisksRelatedtoFinancialInstrumentsXI.Thedisclosureofthefairvalue

1.Closingfairvalueofassetsandliabilitiescalculatedbyfairvalue

InRMB

ItemsClosingfairvalue
Firvaluemeasurementitemsatlevel1Firvaluemeasurementitemsatlevel2Firvaluemeasurementitemsatlevel3Total
I.Consistentfairvaluemeasurement--------
IIInconsistentfairvaluemeasurement--------

XII.Relatedpartiesandrelated-partytransactions

1.Parentcompanyinformationoftheenterprise

NameRegisteredaddressNatureRegisteredcapitalTheparentcompanyoftheCompany'sshareholdingratioTheparentcompanyoftheCompany’svoteratio
ShenzhenInvestmentHoldingsCo.,Ltd.18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,ShenzhenEquityinvestment,Real-estateDevelopmentandGuarantee2,800,900.0046.21%46.21%

Notetotheparentcompany:

Thecompanyisauthorizedandapprovedtobestate-ownedindependentcompanybyShenzhenGovernment,anditExecutesfinancialcontributorfunctiononstate-ownedenterprisewithinauthorizationscope.Therefore,theCompany’sultimatecontrollerisShenzhenInvestmentHoldingsCo.,Ltd.Othernote:None

2.SubsidiariesoftheCompanyFordetailsofthesubsidiaryoftheCompany,see"SectionXFinancialReportIX.Interestsinothersubjects

3.InformationonthejointventuresandassociatedenterprisesoftheCompanyForimportantjointventuresorjointventuresoftheCompany,seethenotestothejointventureandjointventuresoftheCompany.See"SectionXFinancialReportIX.Interestsinotherentities.Othernote

4.OtherRelatedpartiesinformation

OtherrelatedpartyRelationshiptotheCompany
ShenzhenTianmaMicroelectronicsCo.,Ltd.ChairmanoftheBoardIstheViceChairmanoftheCompany
SuzhouAdvantageFordInvestmentCenter(Limitedpartnership)ThecontrollingpartyofSAPOShareholder
Shengto(HK)Co.,Ltd.TheCompanyExecutivesareDirectorofthecompany
HengmeiPhotoelectricCo.,Ltd.SharingCompanyofSuzhouAdvantageFordInvestmentCenter(Limitedpartnership)
ShenzhenXinfangKnittingCo.,Ltd.SharingCompany
ShenzhenDailishiUnderwearCo.,Ltd.SharingCompany

OthernoteNone

5.Relatedtransactions.

(1)RelatedtransactionsonpurchasinggoodsandreceivingservicesAcquisitionofgoodsandreceptionoflaborservice

InRMB

RelatedpartiesContentofrelatedtransactionAmountofcurrentperiodAmountofpreviousperiodOverthetradinglimitornot?Amountoflastperiod
HengmeiPhotoelectricCo.,Ltd.Technicalservice0.000.00No1,415,263.58
HengmeiPhotoelectricCo.,Polarized0.000.00No204,282,036.36

Relatedtransactionsonsalegoodsandreceivingservices

InRMB

Ltd.

Relatedparty

RelatedpartyContentAmountofcurrentperiodAmountofpreviousperiod
ShenzhenTianmaMicroelectronicsCo.,Ltd.Polarized1,441,975.421,485,995.60
HengmeiPhotoelectricCo.,Ltd.Polarized0.00110,545,214.28

NoteNone

(2)Relatedtrusteeship/contractNotapplicable

(3)InformationofrelatedleaseNotapplicable

(4)Related-partyguaranteeRelatedguarantee

InRMB

GuaranteedpartyAmountGuaranteestartdateGuaranteeenddateWhethertheguaranteehasbeenfulfilled
SAPOphotoelectric409,127,400.00September8,2020No

TheCompanyisthesecuredparty

Notapplicable

(5)Inter-banklendingofcapitalofrelatedparties:

InRMB

RelatedpartyAmountStartdateExpiringdateNote
Borrowingfund:
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.3,806,454.17July30,2019Theannuallendinginterestrateis0.30%
Loaned

(6)Relatedpartyassettransferanddebtrestructuring

(7)Rewardsforthekeymanagementpersonnel

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Rewardsforthekeymanagementpersonnel11,152,800.009,175,000.00

(8)Otherrelatedtransactions

6.Receivablesandpayablesofrelatedparties

(1)Receivables

InRMB

NameRelatedpartyAmountatyearendAmountatyearbeginning
BalanceofBookBalanceofBookBalanceofBookBaddebtProvision
AccountreceivableShenzhenTianmaMicroelectronicsCo.,Ltd.412,495.1818,686.03581,696.9625,652.84
AccountreceivableHengmeiPhotoelectricCo.,Ltd.0.000.0020,879,229.37920,774.02
OtherAccountreceivableAnhuiHuapengTextileCompany0.000.001,800,000.001,800,000.00
OtherAccountreceivableShenzhenDailishiUnderwearCo.,Ltd.1,100,000.0055,000.000.000.00

(2)Payables

InRMB

NameRelatedpartyAmountatyearendAmountatyearbeginning
AccountpayableHengmeiPhotoelectricCo.,Ltd.170,977.5335,787,643.44
OtherpayableShenzhenXinfangKnittingCo.,Ltd.244,789.85244,789.85
OtherpayableShenzhenChanglianfa2,023,699.951,580,949.95
Printing&dyeingCo.,Ltd.
OtherpayableYehuiInternationalCo.,Ltd.1,124,656.601,143,127.81
OtherpayableShengtou(Hongkong)Co.,Ltd.315,000.00315,000.00
OtherpayableShenzhenGuanhuaPrinting&dyeingCo.,Ltd.3,806,454.173,811,240.92

7.RelatedpartycommitmentNone

8.OtherNoneXIII.Sharepayment

1.Overallsituationofsharepayment

√Applicable□Notapplicable

InRMB

Totalamountofvariousequityinstrumentsgrantedbythecompanyduringthecurrentperiod0.00
Totalamountofvariousequityinstrumentsthatthecompanyexercisesduringtheperiod0.00
Totalamountofvariousequityinstrumentsthathaveexpiredinthecurrentperiod1,250,430.00
Thescopeofexecutivepriceofthecompany’soutstandingshareoptionsattheendoftheperiodandtheremainingtermofthecontract0yuan,0year
Thescopeofexecutivepriceofthecompany’sotherequityinstrumentsattheendoftheperiodandtheremainingtermofthecontract5.73/yuan/share,1year

OthernoteNote:OnDecember14,2017,thecompany's3rdExtraordinaryGeneralMeetingofShareholdersin2017passedtheProposalon‘ShenzhenTextile(Group)Co.,Ltd.2017RestrictedStockIncentivePlan(Draft)andAbstract’;onDecember14,2017,theboardofdirectorsofthecompanyreviewedandpassedtheProposalonAdjustingtheListofIncentiveObjectsofRestrictedStockIncentivePlansandtheNumberofEquityGrantedof2017,andtheProposalonGrantingRestrictiveSharestoIncentiveObjects.OnDecember14,2017,thecompanygranted4,752,300restrictedsharestotheincentiveobject,thegrantpricewas5.73yuan/share.Restrictionsshallbeliftedattherateof40%,30%,and30%respectivelyafter12months,24months,and36monthsafterthefirsttransactiondateof24monthsafterthecompletionoftheregistration.Thecompany'sperformanceassessmentfortherestrictedsharesgrantedeachperiodisasfollows:

RestrictionliftingperiodPerformanceassessmentgoals
ThefirstrestrictionliftingperiodIn2018,theearningspershareshallbenolessthan0.07yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2018comparedwith2016isnotlessthan70%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2018,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnolessthan70%.
ThesecondrestrictionliftingperiodIn2019,earningspershareshallbenolessthan0.08yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2019comparedwith2016isnotlessthan130%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2019,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnotlessthan75%.
ThethirdrestrictionliftingperiodIn2020,theearningspershareshallbenolessthan0.20yuan,andshallnotbelowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2020isnotlessthan200%comparedto2016,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry.In2020,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenuewillbenolessthan80%.

Note:Earningspershare=netprofit/totalcapitalstockattributabletocommonshareholdersoftheCompanyupondeductionofnon-recurringprofitandloss.OnFebruary2,2021,thecompanyheldthefirstextraordinarygeneralmeetingofshareholdersin2021toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",agreeingtothecompany'stotalholdingsof1originalincentiveobjectwhoresignedduetopersonalreasons7,950restrictedstockswererepurchasedandcancelledatarepurchasepriceof5.73yuan/share;ItwasagreedthattheCompanyrepurchaseandcancel6,000restrictedsharesheldbyoneoriginalincentiveobjectwhohadfailedtomeettheincentiveconditionsduetoretirementat6.23yuan/share.

OnApril7,2021,thecompanyheldthe2020AnnualGeneralMeetingofShareholderstoreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedthatthecompanywouldrepurchaseandcancel1,236,480restrictedstocksheldby102incentiveobjectsinthethirdissuethatdidnotmeettheconditionsforliftingtherestrictionsonsales,andtherepurchasepricewasRMB6.26pershare.

2.Equity-settledshare-basedpayment

√Applicable□Notapplicable

InRMB

DeterminationmethodofthefairvalueofequityinstrumentsonthegrantdateTheclosingpriceofthecompany'sstockongrantdate-grantprice
DeterminationbasisofthenumberofvestingequityinstrumentsOneachbalancesheetdateofthewaitingperiod,itisdeterminedbasedonthelatestinformationsuchasthechangeinthenumberofpeoplethatcanbereleasedfromrestrictionsandthecompletionofperformanceindicators
ReasonsforthesignificantdifferencebetweenthecurrentperiodestimateandthepreviousperiodestimateNone
Equity-settledshare-basedpaymentisincludedinthe0.00
accumulatedamountofcapitalreserve
Totalamountoffeesconfirmedbyequity-settledshare-basedpaymentsinthecurrentperiod0.00

OthernoteNone

3.TheStockpaymentsettledbycash

□Applicable√Notapplicable

4.ModificationandterminationofthestockpaymentNone

5.OtherNoneXIV.Commitments

1.SignificantcommitmentsSignificantcommitmentsatbalancesheetdateAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.

2.Contingency

(1)SignificantcontingencyatbalancesheetdateAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.

(2)TheCompanyhavenosignificantcontingencytodisclose,alsoshouldbestatedNone

3.OtherNoneXV.Eventsafterbalancesheetdate

1.SignificanteventshadnotadjustedNotapplicable

2.ProfitdistributionNotapplicable

3.SalesreturnNone

4.NotesofothersignificanteventsAsofDecember31,2021,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.XVI.Othersignificantevents

1.Correctionoftheaccountingerrorsinthepreviousperiod

(1)Retroactiverestatement

(2)Prospectiveapplication

2.LiabilitiesrestructuringNone

3.Replacementofassets

(1)Non-monetaryassetsexchangeNone

(2)OtherassetsexchangeNone

4.PensionplanNone

5.DiscontinuingoperationNone

6.Segmentinformation

(1)BasisfordeterminingthereportingsegmentsandaccountingpolicyTheCompanydeterminesitsoperatingdivisionsbasedonitsinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.Basedontheoperatingdivisions,theCompanyconfirmsfourreportingdivisions,namelytextiles,polarizer,tradeandpropertyleasing.Divisionalreportinginformationisdisclosedinaccordancewiththeaccountingpoliciesandmeasurementstandardsadoptedbyeachdivisionwhenreportingtothemanagement.Thesemeasurementbasisareconsistentwiththeaccountingandmeasurementbasisforfinancialstatementpreparation.

(2)Financialinformationofthereportdivision

InRMB

ItemsPolarizerPropertyleaseandotherTextileTradeOffsetbetweendivisionsTotal
Operatingincome2,117,717,019.48129,445,842.1055,169,650.79-8,584,620.312,293,747,892.06
Including:revenuefromforeigntransaction2,117,717,019.48121,098,294.0054,932,578.580.002,293,747,892.06
Revenuefrominter-segmenttransactions0.008,347,548.10237,072.21-8,584,620.31-8,584,620.31
Including:revenuefrommainbusiness2,099,489,550.77114,363,911.2355,169,650.79-3,032,482.892,265,990,629.90
Operatingcost1,828,378,235.9038,998,238.0648,686,874.43-7,543,935.111,908,519,413.28
Including:mainbusinesscost1,828,378,235.9026,709,964.5248,686,874.43-3,527,746.061,900,247,328.79
Operatingprofit28,041,538.5853,280,168.22815,378.80-15,576,656.9373,511.2066,633,939.87
Totalassets4,204,357,864.873,296,896,012.5746,233,785.98-2,050,840,555.595,496,647,107.83
Totalindebtedness1,380,985,834.98211,828,635.0627,995,367.47-87,991,976.751,532,817,860.76

(3)Incasethereisnoreportingsegmentorthetotalassetsandliabilitiesofthereportingsegmentscannotbedisclosed,explainthereasonNone

(4)OthernoteNone

7.Othersignificanttransactionsandmattersthatmayaffectinvestors'decisionmakingNone

8.OtherNoneXVII.NotesofmainitemsinthefinancialstatementsoftheParentCompany

1.Accountsreceivable

(1)Accountsreceivableclassifiedbycategory

InRMB

CategoryAmountinyear-endAmountinyear-beginning
BookbalanceBaddebtprovisionBookvalueBookbalanceBaddebtprovisionBookvalue
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Including:
Accrualofbaddebtprovisionbyportfolio8,353,590.78100.00%417,679.545.00%7,935,911.241,538,316.00100.00%76,915.805.00%1,461,400.20
Including:
Total8,353,590.78100.00%417,679.545.00%7,935,911.241,538,316.00100.00%76,915.805.00%1,461,400.20

Accrualofbaddebtprovisionbysingleitem

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportion

Accrualofbaddebtprovisionbyportfolio:417,679.54yuan

InRMB

NameClosingbalance
BookbalanceBaddebtprovisionProportion
Within1year6,815,274.78340,763.745.00%
1-2years1,538,316.0076,915.805.00%
Total8,353,590.78417,679.54--

Accrualofbaddebtprovisionbyportfolio

InRMB

RMB

NameClosingbalance
BookbalanceBaddebtprovisionProportion

Relevantinformationoftheprovisionforbaddebtswillbedisclosedwithreferencetothedisclosuremethodofotherreceivablesiftheprovisionforbaddebtsofbillsreceivableisaccruedaccordingtothegeneralmodelofexpectedcreditloss:

□Applicable√NotapplicableDisclosurebyaging

InRMB

AgingClosingbalance
Within1year(Including1year)6,815,274.78
1-2years1,538,316.00
2-3years0.00
Over3years0.00
3-4years0.00
Total8,353,590.78

(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision:

InRMB

CategoryOpeningbalanceAmountofchangeinthecurrentperiodClosingbalance
AccrualReversedorcollectedamountWrite-offOther
76,915.80340,763.74417,679.54
Total76,915.80340,763.74417,679.54
Total76,915.8066,116.12143,031.92

Wherethesignificantamountofthereserveforbaddebtrecoveredorreversed:

InRMB

NameAmountMode

None

(3)Theactualwrite-offaccountsreceivable

InRMB

ItemsAmount

(4)Theendingbalanceofotherreceivablesowedbytheimputationofthetopfiveparties

InRMB

NameClosingbalanceProportion%BalanceofBaddebtprovision
ShenzhenGuangshengDevelopmentIndustryCo.,Ltd.5,610,352.8167.16%280,517.64
ShenzhenBeautyCenturyGarmentCo.,Ltd.2,485,076.0029.75%124,253.80
ShenzhenYuehaoHotelManagementCo.,Ltd.245,621.972.94%12,281.10
CaoCheng9,300.000.11%465.00
MaYue3,240.000.04%162.00
Total8,353,590.78100.00%--

(5)AccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassetsNone

(6)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivableNone

2.Otheraccountsreceivable

InRMB

ItemsClosingbalanceOpeningbalance
Otheraccountsreceivable14,383,631.687,450,934.40
Total14,383,631.687,450,934.40

(1)Interestreceivable1)Categoryofinterestreceivable

InRMB

ItemsClosingbalanceOpeningbalance

2)Significantoverdueinterest

InRMB

Items)Balanceinyear-endAgingReasonsfornon-recoveryWhetherornottheimpairmentandthebasisforitsdetermination

Othernote:

3)Bad-debtprovision

√Applicable□Notapplicable

InRMB

BaddebtprovisionStage1Stage2Stage3Total
Expectedcreditlossesoverthenext12monthsExpectedcreditlossoverlife(nocreditimpairment)Expectedcreditlossesfortheentireduration(creditimpairmentoccurred)
BalanceasatJanuary1,2021Incurrent————————

Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√Notapplicable

(2)Dividendreceivable

1)CategoryofDividendreceivable

(2)Dividendreceivable

1)CategoryofDividendreceivable

InRMB

ItemsClosingbalanceOpeningbalance

2)Significantdividendsreceivablewithageexceeding1year

InRMB

Items)Balanceinyear-endAgingReasonsfornon-recoveryWhetherornottheimpairmentandthebasisforits

3)Bad-debtprovision

√Applicable□Notapplicable

InRMB

determinationBaddebtprovision

BaddebtprovisionStage1Stage2Stage3Total
Expectedcreditlossesoverthenext12monthsExpectedcreditlossoverlife(nocreditimpairment)Expectedcreditlossesfortheentireduration(creditimpairmentoccurred)
BalanceasatJanuary1,20211,018,014.3915,111,246.3216,129,260.71
BalanceasatJanuary1,2021Incurrent————————
Provisioninthecurrentperiod369,750.00369,750.00
BalanceasatDecember31,20211,387,764.3915,111,246.3216,499,010.71

Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√NotapplicableOthernote:

(3)Otheraccountsreceivable

1)Otheraccountsreceivableclassifiedbythenatureofaccounts

InRMB

NatureClosingbookbalanceOpeningbookbalance
Otherreceivable14,383,631.687,450,934.40
Total14,383,631.687,450,934.40

2)Bad-debtprovision

InRMB

BadDebtReservesStage1Stage2Stage3Total
Expectedcreditlossesoverthenext12monthsExpectedcreditlossoverlife(nocreditimpairment)Expectedcreditlossesfortheentireduration(creditimpairmentoccurred)
BalanceasatJanuary1,20211,018,014.4015,111,246.3216,129,260.71
BalanceasatJanuary1,2021Incurrent————————
Provisioninthecurrent369,750.00369,750.00
period
BalanceasatDecember31,20211,387,764.3915,111,246.3216,499,010.71

Lossprovisionchangesincurrentperiod,changeinbookbalancewithsignificantamount

□Applicable√NotapplicableDisclosurebyaging

InRMB

AgingClosingbalance
Within1year(Including1year)15,603,247.29
1-2years0.00
2-3years234,716.25
Over3years15,044,678.85
3-4years328,819.35
4-5years454,759.77
Over5years14,261,099.73
Total30,882,642.39

3)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodThewithdrawalamountofthebaddebtprovision:

InRMB

CategoryOpeningbalanceAmountofchangeinthecurrentperiodClosingbalance
AccrualReversedorcollectedamountWrite-offOther
Internalcurrentaccount877,680.00365,000.001,242,680.00
Deposit5,000.005,000.00
Other1,260.00122.361,382.36
Unitaccount15,245,320.714,627.6415,249,948.35
Total16,129,260.71369,750.0016,499,010.71

Wherethesignificantamountoftheprovisionforbaddebtrecoveredorreversed

InRMB

NameAmountMode

4)Accountsreceivableactuallywrittenoffinthereportingperiod

InRMB

ItemsAmount

Ofwhichthesignificantamountofthereversedorcollectedpartduringthereportingperiod:

InRMB

NameNatureAmountReasonVerificationproceduresperformedWhetherthemoneyisgeneratedbyrelatedpartytransactions

(5)Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty

InRMB

NameNatureYear-endbalanceAgePortionintotalotherreceivables(%)Baddebtprovisionofyear-endbalance
ShenzhenBeautyCenturyGarmentCo.,Ltd.Internalcurrentaccount14,475,600.001-3years46.87%1,242,680.00
JiangxiXuanliThreadCo.,Ltd.Unitaccount11,389,044.60Over5years36.88%11,389,044.60
AnhuiHuapengTextileCompanyUnitaccount1,800,000.00Over5years5.83%1,800,000.00
ShenzhenDailisiUnderwearCo.,LtdUnitaccount1,100,000.00Within1year3.56%55,000.00
ShenzhenXieliAutomobileRepairPlantUnitaccount1,018,295.372-5years3.30%1,018,295.37
Total--29,782,939.97--96.44%15,505,019.97

6)Accountsreceivableinvolvedwithgovernmentsubsidies

InRMB

NameNameofthegovernmentsubsidyprojectYear-endbalanceAgingTime,amountandbasisoftheexpectedcollection

Thecompanyhasnogovernmentsubsidiesreceivable.

7)Otheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets

(8)TheamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofotheraccountsreceivableOthernote:

3.Long-termequityinvestment

InRMB

ItemsClosingbalanceOpeningbalance
BookbalanceProvisionforimpairmentBookvalueBookbalanceProvisionforimpairmentBookvalue
Investmentsinsubsidiaries1,972,630,835.3916,582,629.301,956,048,206.091,972,630,835.3916,582,629.301,956,048,206.09
Investmentsinassociatesandjointventures133,022,325.770.00133,022,325.77147,929,137.230.00147,929,137.23
Total2,105,653,161.1616,582,629.302,089,070,531.862,120,559,972.6216,582,629.302,103,977,343.32

(1)Investmenttothesubsidiary

InRMB

NameOpeningbalanceIncrease/decreaseinreportingperiodClosingbalanceClosingbalanceofimpairmentprovision
AddinvestmentDecreasedinvestmentWithdrawnimpairmentprovisionOther
SAPOPhotoelectric1,910,247,781.941,910,247,781.9414,415,288.09
ShenzhenLisiIndustrialDevelopmentCo.,Ltd.8,073,388.258,073,388.25
ShenzhenBeautyCenturyGarmentCo.,Ltd.14,696,874.3414,696,874.342,167,341.21
ShenzhenHuaqiangHotel15,489,351.0815,489,351.08
ShenzhenShenfangRealEstateManagementCo.,Ltd.1,713,186.551,713,186.55
ShenzhenShenfangSungangRealEstateManagementCo.,Ltd.5,827,623.935,827,623.93
Total1,956,048,206.091,956,048,206.0916,582,629.30

(2)Investmenttojointventuresandassociatedenterprises

InRMB

NameOpeningbalanceIncrease/decreaseinreportingperiodClosingbalanceClosingbalanceofimpairmentprovision
AddinvestmentDecreasedinvestmentGain/lossofInvestmentAdjustmentofothercomprehensiveincomeOtherequitychangesDeclarationofcashdividendsorprofitWithdrawnimpairmentprovisionOther
I.Jointventures
AnhuiHuapengTextileCo.,Ltd.10,797,023.1410,797,023.14
ShenzhenGuanhuaPrinting&DyeingCo.,Ltd.127,906,165.17308,060.37128,214,225.54
Subtotal138,703,188.310,797,023.14308,060.37128,214,225.5
14
II.Associatedenterprises
ShenzhenChanglianfaPrintinganddyeingCompany2,706,262.38265,940.592,972,202.97
JordanGarnentFactory
YehuiInternationalCo.,Ltd.6,519,686.54-540,016.30-199,063.733,944,709.251,835,897.26
Subtotal9,225,948.92-274,075.71-199,063.733,944,709.254,808,100.23
Total147,929,137.23133,022,325.770.00

(3)Othernote

4.BusinessincomeandBusinesscost

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
BusinessincomeBusinesscostBusinessincomeBusinesscost
IncomefromMainBusiness74,272,555.427,660,814.1157,649,817.537,019,203.76
OtherBusinessincome3,887,130.773,887,130.773,647,070.683,647,070.68
Total78,159,686.1911,547,944.8861,296,888.2110,666,274.44

Income-relatedinformation:

InRMB

TypeDivision1Division2Total
Ofwhich:
Ofwhich:
Ofwhich:
Ofwhich:
Ofwhich:
Ofwhich:
Ofwhich:

Informationrelatedtoperformanceobligations:NoneInformationrelatedtothetransactionpriceapportionedtotheresidualperformanceobligation:NoneAttheendofthereportingperiod,theincomeamountcorrespondingtotheperformanceobligationsthathavebeensignedbutnotfulfilledorcompletedis0.00yuan.Amongthem,RMB0.00isexpectedtoberecognizedasrevenuein0year,RMB0.00isexpectedtoberecognizedasrevenuein0year,andRMB0.00isexpectedtoberecognizedasrevenuein0year.Othernote:None

5.Investmentincome

InRMB

ItemsAmountofcurrentperiodAmountofpreviousperiod
Incomefromlong-termequityinvestmentmeasuredbyadoptingtheCostmethod18,304,138.91
Incomefromlong-termequityinvestmentmeasuredbyadoptingtheequitymethod33,984.66-3,446,613.86
Investmentincomefromthedisposaloflong-termequityinvestment20,779.93
Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments1,659,743.651,995,042.32
Structureddepositinterest4,036,968.4314,919,678.58
Netmonetarygains14,657,621.813,884,233.70
Total20,409,098.4835,656,479.65

6.OtherXVIII.Supplementinformation

1.Particularsaboutcurrentnon-recurringgainsandloss

√Applicable□Notapplicable

InRMB

ItemsAmountNotes
Non-currentassetdisposalgain/loss-961,982.35
Governmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies)19,643,379.33Otherbenefitsofgovernmentsubsidiesthatareconfirmedrelatedtothemainbusiness.
Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest.989,313.04
Othernon-businessincomeandexpendituresotherthantheabove19,964,046.87
Less:Influencedamountofincometax6,025,891.12
Influencedamountofminorshareholders’equity(aftertax)13,096,494.74
Total20,512,371.03--

Detailsofotherprofitandlossitemsthatmeetthenon-recurringprofitandlossdefinition

□Applicable√NotapplicableExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-ExtraordinaryGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.

□Applicable√Notapplicable

2.Returnonnetassetandearningspershare

ProfitofreportperiodWeightedaveragereturnsequity(%)Earningspershare
Basicearningspershare(RMB/share)Dilutedearningspershare(RMB/share)
NetprofitattributabletotheCommonstockshareholdersofCompany.2.24%0.120.12
NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss.1.46%0.080.08

3.Differencesbetweenaccountingdataunderdomesticandoverseasaccountingstandards

(1)SimultaneouslypursuanttobothChineseaccountingstandardsandinternationalaccountingstandardsdisclosedinthefinancialreportsofdifferencesinnetincomeandnetassets.

□Applicable□√Notapplicable

(2)DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.

□Applicable□√Notapplicable

(3)Explanationofthereasonsforthedifferencesinaccountingdataunderdomesticandforeignaccountingstandards.Ifthedatathathasbeenauditedbyanoverseasauditinstitutionisadjustedfordifferences,thenameoftheoverseasinstitutionshouldbeindicatedNone

4.OtherNone

TheBoardofDirectorsofShenzhenTextile(Holdings)Co.,Ltd.

March17,2021


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