Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2018
August 2018
I. Important Notice, Table of Contents and Definitions
The Board of Directors，the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in theReport and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness ofthe Report.Mr.Zhu Jun, The Company leader, Mr. Zhu Meizhu, Chief financial officer and the Mr.Mu Linying, the person incharge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity andcompleteness of the financial report enclosed in the semi-report.
All the directors attended the board meeting for the review of this Report.I.Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors, investors should be cautious with investment risks.
II. The company has the macroeconomic risks, market competition risks and raw material risks. Investors are
advised to pay attention to investment risks. For details, please refer to the possible risk factors that the company
may face in the “X Prospects for the future development of the company" in the “Section IV Discussion andAnalysis of Business Operation”.
III.The company to remind the majority of investors，Securities Time, China Securities Journal, Securities Daily,Shanghai Securities News , Hongkong Commercial Daily and Juchao Website（http://www.cninfo.com.cn） are the
media for information disclosure appointed by the Company, all information under the name of the Companydisclosed on the above said media shall prevail, and investors are advised to exercise caution of investment risks.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shallprevail.
Table of Contents
I. Important Notice and DefinitionsII. Corporate Profile and Key Financial ResultsIII. Business ProfileIV. Performance Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII.Information about Directors, Supervisors and Senior ExecutivesIX. Corporate Bonds.X.Financial ReportXI. Documents available for inspection
Definition
| Terms to be defined | Refers to | Definition |
| Company/The Company/ Shen Textile | Refers to | Shenzhen Textile (Holdings) Co., Ltd |
| Articles of Association | Refers to | Articles of Association of Shenzhen Textile (Holdings) Co., Ltd |
| Actual controller / National Assets Regulatory Commission of Shenzhen Municipal People's Government | Refers to | National Assets Regulatory Commission of Shenzhen Municipal People's Government |
| The Controlling shareholder/ Shenzhen Investment Holding Co., Ltd. | Refers to | Shenzhen Investment Holding Co., Ltd. |
| Shenchao Technology | Refers to | Shenzhen Shenchao Technology Investment Co., Ltd. |
| Shengbo Optoelectronic | Refers to | Shenzhen Shengbo Optoelectronic Technology Co., Ltd. |
| Jinjiang Group | Refers to | Hangzhou Jinjiang Group Co., Ltd. |
| Nitto Denko | Refers to | Nitto Denko Corporation |
| Kunshan Qimei | Refers to | Kunshan Zhiqimei Material Technology Co., Ltd. |
| Jinhang Investment | Refers to | Hangzhou Jinhang Equity Investment Fund Partnership (LP) |
| Jinxin Investment | Refers to | Lanxi Jinxin Investment Management Co., Ltd. |
| Changxing Junying | Refers to | Changxing Junying Eqkuity Investment Partnership（LP） |
| Huaiji Investment | Refers to | Hangzhou Huaiji Investment Management Co., Ltd. |
| “CSRC” | Refers to | China Securities Regulatory Commission |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People’s Republic of China |
| The Report | Refers to | 2018 Semi- Annual Report |
II. Corporate Profile and Key Financial ResultsI. Company Information
| Stock abbreviation | Shen Textile A ,Shen Textile B | Stock code | 000045、200045 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name in Chinese | 深圳市纺织(集团)股份有限公司 | ||
| Chinese abbreviation (If any) | 深纺织 | ||
| English name (If any) | SHENZHEN TEXTILE （HOLDINGS） CO.,LTD | ||
| English abbreviation (If any) | STHC | ||
| Legal Representative | Zhu Jun | ||
| Board secretary | Securities affairs Representative | |
| Name | Jiang Peng | Li Zhenyu |
| Contact address | 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen | 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen |
| Tel | 0755-83776043 | 0755-83776043 |
| Fax | 0755-83776139 | 0755-83776139 |
| jiangp@chinasthc.com | lizy@chinasthc.com |
IV.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
| Reporting period | Same period of last year | YoY+/-（%） | |
| Operating income（RMB） | 538,288,050.61 | 739,337,756.87 | -27.19% |
| Net profit attributable to the shareholders of the listed company（RMB） | 9,646,976.15 | 14,457,841.63 | -33.28% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | -10,817,314.92 | -4,286,186.35 | -152.38% |
| Cash flow generated by business operation, net（RMB） | -128,850,889.44 | -98,176,400.94 | -31.24% |
| Basic earning per share(RMB/Share) | 0.02 | 0.03 | -33.33% |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.02 | 0.03 | -33.33% |
| Weighted average ROE(%) | 0.40% | 0.61% | -0.21% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Total assets（RMB） | 4,299,888,118.25 | 4,195,746,507.56 | 2.48% |
| Net assets attributable to shareholder of listed company（RMB） | 2,410,183,006.27 | 2,397,474,603.79 | 0.53% |
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -43,338.08 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 5,812,167.76 | |
| Gain/loss on entrusting others with investment or asset management | 28,152,710.15 | |
| Other non-business income and expenditures other than the above | -20,094.83 | |
| Less :Influenced amount of income tax | 231,421.06 | |
| Influenced amount of minor shareholders’ equity (after tax) | 13,205,732.87 | |
| Total | 20,464,291.07 | -- |
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industryNo
The company's main business covered such the high and new technology industry as represented by LCDpolarizer, its own property management business and the retained business of high-end textile and garmentPolarizer is the upstream raw material for liquid crystal panel, also is one of the key materials for flat paneldisplay industry, and it has been widely used in smart phones, liquid crystal display panel of tablet computers andTVs and so forth, OLED display panel, instrumentation, sun glasses, filter of photographic equipments and so on
many fields. The company’s six existing production lines of polarizer with mass production have products covered
the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the products mainlyused in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones, wearabledevices, 3D glasses, sunglasses and so forth products, becoming the qualified supplier to Huaxing Optoelectronic,BOE, Ivo, Shenchao Optoelectronic ,LGD and so forth panel companies.
During the reporting period, the company’s polarizer business is introduced as follows:
First, the company has completed fund-raising investment in the construction of Phase II project of polarizerfor TFT-LCD on line 6, and such construction has transferred to fixed asset, which is in the phase of massproduction; Second, the company has promoted actively the construction of ultra-wide production line forpolarizer, and completed the project initiation for investment in the construction of polarizer industrializationproject for ultra-large-size TVs (line 7), and feasibility study and argument, as well as expert review of the project;Third, for the acquisition and integration of the optical film industry chain, the company has re-introducedstrategic investor of subsidiary SAPO photoelectric; Fourth, the company has improved the speed and quality inthe production line while reducing consumption, and followed up substitution and introduction of variousproducts to reduce production cost while improving management efficiency and production level; Fifth, thecompany has continued to maintain cooperation with existing customers while strengthening quality management.Through keeping track of supply of existing customer, emphasizing after-sales service, the company hasunderstood after-sales situation and maintained business cooperation relationship to reduce product return andexchange rate; Sixth, the company has continued to conduct R&D and innovation, explored innovativedevelopment of mature products horizontally, and enhanced corporate sustainable development capacity.
At present, there are 8 10.5/11 generation lines under construction or planned construction in the world, ofwhich 6 are in mainland China, with these capacities being built and released in the next few years, it is expectedto have a considerable impact on the global flat panel display market. In particular, the impact on the relevantindustrial chain in mainland China will be even more profound. In 2017, the global mainstream LCD panelshipments reached 720 million units. In terms of shipping area, the global LCD panel shipment area reached 200million square meters. With the trend of large-screen development of various panel products, especially the trendof large-screen development of LCD TVs, the shipment area in 2018 will continue to grow. It is expected that
with the gradual release of BOE’s production capacity for 10.5 generation line, the shipment area will maintain
steady growth in the next five years. The polarizer is a kind of material with high technology content in the panelcomponent material. Its performance has an important influence on the key indicators of the flat panel display.
With the rapid development of the display industry, the gap of supply for domestic polarizer is further widened,which directly drives the market demand for polarizer to continuously grow. In the future, the company will relyon more than 20 years of industrial operation experience and regional advantage to fully tap and leverage thestrength from resource of state-owned enterprises and institution of private enterprises, continue to deepen thereform of diversified ownership, study technology, and cultivate talents to actively seek further development. Atthe same time, the company will seize the market opportunity, integrate industrial resources to make SAPOphotoelectric stronger and better.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | No major changes |
| Fixed assets | At the end of the period, the fixed assets increased by RMB 356.168 million compared with the beginning of the period, an increase of 55.65%, mainly due to the carry-over of fixed assets in the current phase II of the TFT-LCD polarizer. |
| Intangible assets | No major changes |
| Construction in process | At the end of the period, the Construction in process decreased by RMB 307.86 million compared with the beginning of the period, an decreased of 95.44%, mainly due to the carry-over of fixed assets in the current phase II of the TFT-LCD polarizer. |
polarizing materials and engineering laboratory" and "Municipal research and development center", focused onthe R&D and the industrialization of the core production technology of LCD polarizer, the developing and
industrialization of the new products of OLED polarizer and the “domestication” research on the production
materials of polarizer. Through the introduction of various types of sophisticated testing equipments to perfect thetest means of small-scale test and medium-scale test, further by improving the incentive system of research and
development and building the collaborative innovation platform of “Industry-Study-Research-Utilization” and so
forth means, the company comprehensively enhanced the level of research and development.
（2）Talents advantages. The company has the management team and the senior technical team with strong
technical ability, enduring cooperative spirit, rich experience and international vision on the polarizer. Thecompany had engaged overseas technical personnel who have great experiences on advanced polarizer productionand established the technology management team with its own technical team and complemented by engagingforeign technical personnel, and via the combination of independent innovation and technology providing byengaged foreign personnel to accumulate technology, Upon Talents Advantages, the company has established andaccumulated the first-mover advantages in terms of brand, technology, operation and management. Through theimprovement of the appraisal and distribution system, the implementation of the reserve talent echelonmanagement mechanism and the medium and long-term incentive and restraint mechanism, the employee'sinterests are deeply tied with the company, and the salaries and incentives focus is shifted to core employees suchas management and research and development, giving full play to the subjective initiative of the talents.
（2）Talents advantages. The company has a large number of high-quality, high-skilled technical personnel.
The technical experts and main R&D personnel are senior staff in the industry. The management team and seniortechnician team for polarizer are experienced and have global vision. The company has established a technicalmanagement team that comprises its own technical team and external technical staff. Through the combination ofindependent innovation for technological accumulation and technical support from external personnel, thetechnical management team has integrated industry resources, enabling the company to establish and accumulatefirst-mover advantages of brand, technology and operation in the domestic polarizer business. In addition, throughthe improvement of the assessment and distribution system, the company has implemented the echelonmanagement mechanism for reserve talent and the medium- and long-term incentive and restraint mechanism to
combine the employee’s interests with the company deeply, and rewarded the key employees of management,
research and development, etc with salary incentives to bring their subjective initiative of talents into full play.
（3）Market advantages. The company has a good market customer base at home and abroad. Compared with
its senior foreign counterparts, the biggest advantage lies in the localization support for panel market and thestrong support of national policies. In terms of market demand, most of the current new capacity investment isderived from in mainland China, which is also the main driving source for the rapid expansion of productioncapacity for global LCD panel. At present, there are 8 10.5/11 generation lines under construction or plannedconstruction in the world, of which 6 are in mainland China, with these capacities being built and released in thenext few years, it is expected to have a considerable impact on the global flat panel display market. In particular,the impact on the relevant industrial chain in mainland China will be more profound; In terms of marketdevelopment, the company has combined production and sales by emphasizing production material control, takingtechnical service as the guide and attaching great importance to customer demand to establish a rapid responsemechanism, and provided a point-to-point professional service in a targeted manner by giving full play to its ownadvantages and using the technology and talents accumulated over the years, to form a stable supply chain andgrasp the market share.
(4) Quality advantages. The company always adheres to the quality policy of “meeting customer needs and
pursuing excellent quality”, attaching great importance to product quality control to make products up to the
international quality standard. The company has strictly controlled product performance indicators, standardizedincoming inspection standard, to achieve simultaneous improvement in output and quality by improving qualityand reducing consumption.through the introduction of a modern quality management system, the products havepassed ISO9001 Quality Management System and ISO14001 Environmental Management System, IATF16949quality management system of automobile industry, OHSAS18000 Occupational Health and Safety ManagementSystem, QCO80000 System Certification; the product is tested by SGS and meets the environmentalprotection ,The company had increased the automatic detecting and marking equipments in the beginning sectionand the ending section, strictly controlled the product quality and improved the product utilization rate andproduct management efficiency.
（5）Management advantages. Shengbo Optoelectronic has accumulated rich management experiences in
more than 20 years in the manufacturing of polarizer, possessing the home most advanced control technology ofthe production management process of the polarizer and quality management technology and the stable rawmaterial procurement channel so forth management systems. The company has carried out comprehensivebenchmarking management by organizing management personnel to learn advanced experience from customers
and peers and drawing lessons from other management experience of polarizer supplier to optimize the company’s
organizational structure and further enhance the management efficiency. With the advantages brought by thereform of the diversified ownership, the company has managed existing production line in a unified manner toreduce the production cost while improving the automation level of the production line. The company has adoptedautomated machine detection method instead of manual detection method in some process, thereby reducing laborcost and improving detection accuracy. The company has continued to implement advanced management systems,reasonable incentive mechanism, and simultaneously improve the R&D reward system to make in-depth fusion ofthe value of the company and employees and stimulate new vitality of operation.
（6）Policy advantages. Polarizers is an important part of the flat panel display industry. Shengbo
Optoelectronics guarantees the purchase rights of polarizers for domestic panel companies, reduces the purchasecost of polarizers for domestic panel companies, ensures the safety of the national panel industry, and strengthensthe flat panel industry in China, has played a positive role in enhancing the overall competitiveness of the flatpanel display industry chain in China and promoted the coordinated development of the entire industrial chain ofthe flat panel display industry cluster in Shenzhen. The company's polaroid project has won many national andprovincial policies and financial support. At the same time, the company strengthened supplier management,improved its overall procurement strategy, strictly controlled the number of suppliers, introduced a competitivemechanism, and introduced price-competitive alternative materials to further reduce production costs and improveproduct competitiveness.
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2018, the company has continued to deepen the practice of diversified ownership reform,actively promoted the construction of ultra-wide production line for polarizer and the acquisition and integrationof optical film industry chain. In the reporting period, it has completed project initiation for investment in theconstruction of polarizer industrialization project for ultra-large-size TVs (line 7), feasibility study and argumentand expert review of the project, and initiated the reintroduction of strategic investors of subsidiary SAPOphotoelectric; Second, the company has actively adjusted the production management strategy of polarizer,optimized product structure, and accelerated technological transformation. During the reporting period, thecompany has completed technical transformation and commissioning of Phase II project of polarizer forTFT-LCD on line 6, has now entered the mass production stage, and the operation quality of the polarizer supplierhas been effectively improved. Third, the company has active promoted property renovation and upgradingprojects to make property leasing rising stably; Fourth, the company has adjusted and optimized the customerstructure to make order growing steadily, which has greatly changed the difficulties of textile and garmentoperations.
During the reporting period, the Company realized the operating income of RMB 538.2881 million,representing an decrease of RMB201.0497 million or 27.19% over the same period of last year; the total profit wasRMB 9.88 million, representing an decrease of RMB 10.3994 million or 51.28% over the same period last year; thenet profits was RMB 9.647 million, representing an decrease of RMB 4.8109 million or 33.28% over the sameperiod last year.
During the reporting period, the company has been operated under normal operating condition. The reasonfor decreased net profit attributable to shareholders of listed companies compared with the same period of theprevious year include: First, the research and development expenses during the reporting period had increasedcompared with the same period of last year. Second, the trade has a decline in business which is compared withthe same period last year. Third, the adjustment of TN/STN production line had led to a decline in productio n andsales.
Reviewing the first half of 2018, the company focused on the key work, with contents as follows:
(I) Comprehensively improving the operation and R&D capabilities of polarizer businessDuring the reporting period, the company has improved the speed and quality in the production line whilereducing consumption to improve production level and follow up substitution and introduction of various productsto reduce production cost by emphasizing to improve management efficiency and improving economic efficiencyas the foothold. Second, the company has continued to maintain cooperation with existing customers whilestrengthening quality management to gain sales share, and attach great importance to the supply of existingcustomers to ensure stable sales; Third, the company has improved awareness of quality management, focusing onafter-sales service. Through keeping track of after-sales situation, the company has maintained businesscooperation relationship to reduce product return and exchange rate. As the company has maintained relativelystable production and operation for polarizer, the polarizer business as a whole has a great development potential.
At the same time, the company has devoted greater effort to independent research and development andinnovation. During the reporting period, the company has applied for one patent and obtained two authorizations,including one domestic invention patent and one authorization; one domestic utility model authorization. The two
national standards “Determination of Optical Compensation Value for Polarizer” and “Test Methods for Adhesionof Optical Film Coating for Polarizer” developed by the company have been officially implemented. The
company has conducted R&D and industrialization of key production technology of polarizer for LCDs anddevelopment and industrialization of new polarizer for OLEDs as well as nationalism study of raw materials for
polarizer production on the two technology platforms of “Shenzhen Polarizing Materials and TechnologyEngineering Laboratory” and “Municipal Research and Development Center”. In addition, the company has
actively expanded investment in research and development, horizontally explored the innovative development ofmature products, enhancing the sustainable development of the company.
(II) Completing the construction of project on line 6 as plannedIn view of the fact that the price of 32-inch products in the polarizer market declined to some extent at theend of 2017, in order to adjust the product structure and better undertake the business of ultra-large-size polarizerproducts with higher profits, the company launched the optimization and upgrade of host equipment insecond-phase of project on line 6 at the end of 2017. As of June 30, 2018, the construction of project on line 6 hastransferred to fixed asset, which has met the condition of mass production.
(III) Actively promoting the construction of project on line 7During the reporting period, the company has completed the project initiation in the construction of polarizerindustrialization project for ultra-large-size TVs (line 7), feasibility study and expert review. The company isactively carrying out preparatory work such as plant planning, equipment selection, and negotiation on technicalassistance agreement with Nitto of the project on line 7, and the project still has corresponding review proceduresto be performed.
(IV) Subsidiaries initiate capital increase and share expansion to introduce strategic investorsDuring the reporting period, in order to further optimize the equity structure of the holding subsidiary SAPOphotoelectric, give full play to the advantages of the system mechanism of diversified ownership, improve theacquisition and integration of the optical film industry chain, and seize the good market opportunities to achievethe aim of making optical film business including polarizer bigger and stronger, the company plans to planned toincrease capital and expand shares of SAPO photoelectric after introduction of Jinjiang Group as strategic investorin 2016, to attract other strategic investors. The company will further implement the corresponding reviewprocedures according to the progress of the matter and information disclosure obligation.
(V) Tapping potentials of property enterprises to increase efficiency to achieve steady developmentDuring the reporting period, first, the company has strengthened the management standards of propertyenterprises and actively promoted the fire rectification in the first half of the year. Second, the undergroundbusiness district of Huaqiang North region has gradually matured through combination with the positive responseto market demand and changes. The renovation of the external wall has created favorable conditions for thecontinuous improvement of the property management efficiency; Third, potential of property and hotels has beentapped to increase efficiency by emphasizing the safety management, overcoming the marketing difficulties to
improve the quality of property services, and explore new growth points of the company’s property income.
(VI) Optimizing product structure of textile business to effectively improve operational capabilityDuring the reporting period, the textile business has suffered from significant losses. Through theintroduction of high-end customers, the company has controlled production capacity in a targeted manner byenhancing marketing to drive production, to make order volume reach saturation, and to make product structuremore reasonable; At the same time, the company has continued to follow up the competitors to understand theirdynamics, coordinated and met customer needs, and optimized sales strategies to improve profitability.
(VII) Always guaranteeing safety production and maintaining the company’s harmony and stability
During the reporting period, the company has identified 68 safety hazards by checking the safety production
of its subsidiaries in accordance with the plan, which have basically been solved. In addition, the company has
inspected the previous year’s unresolved hidden dangers to give effective control, and developed specificmeasures and programs to be filed for the company’s security committee. The company has set out to strengthen
the monitoring mechanism of hidden danger points and hazard sources, intensified the self-inspection of safetyproduction, and allocated the responsibility of the hidden danger points and danger sources discovered throughself-inspection to specific personnel in specific time limit to make reasonable inspection, documentation,rectification and acceptance in order. If the rectification is completed in time, close-loop process is formed.
(VIII) Strengthening party building and innovating corporate cultureDuring the reporting period, the company has earnestly carried out party building. Under the leadership of
the party committee at the higher level, first, the company’s party committee has studied the spirit of the 19th
CPC National Congress thoroughly and actively carried out the construction of normalization and
institutionalization of learning and education proposed in “Two Studies, and One Action”. Second, the partycommittee has earnestly implemented the “two responsibilities” of promoting ethical party and government,
which has created a clean and positive atmosphere for enterprise development; Third, the committee hasstrengthened the ideological construction, organizational construction, leadership team building, systemconstruction and work style construction at the grassroots level, and strengthened accountability to provide strong
political and organizational guarantee for the company’s deepening reform; Fourth, the committee has actively
played the role of the party branch, youth league branch, and the trade unions by strengthening the construction ofparty branch and youth league branch to promote the role of party members and league members as a model andby taking trade union activities as a link to promote corporate culture construction and improve corporatecohesion.
II.Main business analysis
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
| This report period | Same period last year | YOY change（%） | Cause change | |
| Operating income | 538,288,050.61 | 739,337,756.87 | -27.19% | During the reporting period, the sales structure of products was readjusted, the sales of negative gross profit products were controlled, and the sales of high gross profit products were increased. |
| Operating cost | 479,118,600.37 | 677,617,195.79 | -29.29% | |
| Sale expenses | 3,780,411.53 | 4,007,043.14 | -5.66% | |
| Administrative expenses | 62,428,219.55 | 40,846,568.49 | 52.84% | R&D expenses increased during the reporting period compared with the |
| same period | ||||
| Financial expenses | -3,852,587.66 | -12,037,356.58 | -67.99% | Reduced interest income |
| Income tax expenses | 5,321,864.53 | 7,742,958.27 | -31.27% | Total profit decreased year on year |
| R & D Investment | 21,189,099.82 | 10,940,227.74 | 93.68% | In this issue, due to the commissioning of Line 6, the R&D investment has increased. |
| Cash flow generated by business operation, net | -128,850,889.44 | -98,176,400.94 | -31.24% | In the current period, the inventory reserve was increased due to the production of Line 6. |
| Net cash flow generated by investment | -81,631,016.04 | 194,444,447.29 | -141.98% | Increase investment in wealth management products in this period |
| Net cash flow generated by financing | 64,472,159.75 | -8,077,450.21 | 898.17% | Increase bank short-term loans in the current period |
| Net increasing of cash and cash equivalents | -146,504,345.47 | 87,522,186.89 | -267.39% |
| Operating revenue | operating costs | Gross profit rate(%) | Increase/decrease of reverse in the same period of the previous year(%) | Increase/decrease of principal business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
| Industry | ||||||
| Domestic and foreign trade | 83,688,841.12 | 82,942,354.23 | 0.89% | -58.25% | -57.94% | -0.74% |
| Manufacturing | 339,002,915.69 | 316,963,495.17 | 6.50% | 6.39% | 6.49% | -0.08% |
| Lease and Management of Property | 46,329,028.98 | 12,678,147.10 | 72.63% | 4.93% | 0.29% | 1.26% |
| Product | ||||||
| Income from Lease and Management of Property | 46,329,028.98 | 12,678,147.10 | 72.63% | 4.93% | 0.29% | 1.26% |
| Income from textile | 13,032,797.65 | 12,031,078.32 | 7.69% | 15.92% | 5.41% | 9.21% |
| Polarizer sheet | 325,970,118.04 | 304,932,416.85 | 6.45% | -13.59% | -14.13% | 0.58% |
| Trading | 83,688,841.12 | 82,942,354.23 | 0.89% | -35.92% | -35.37% | -0.84% |
| Area | ||||||
| Domestic | 332,974,484.74 | 279,210,729.87 | 16.15% | -13.36% | -22.20% | 9.54% |
| Overseas | 136,046,301.05 | 133,373,266.63 | 1.96% | -23.96% | -10.24% | -14.99% |
| Amount | Ratio to the total profit amount (%) | Notes of the causes | Recurring or not | |
| Investment income | 28,552,710.15 | 289.00% | Obtained the dividends from the share-participating enterprise and gains from trust wealth management | The dividends from the share-participating enterprise and the contracting fees possess the sustainability, but the proceeds from the trust wealth management does not possess the sustainability |
| Impairment of assets | 17,394,332.04 | 176.06% | Inventory depreciation loss, bad debt loss | Have the sustainability |
| Non-operating income | 89,905.17 | 0.91% | Mainly government subsidy maternity allowance。 | Have the sustainability |
| Non-operating expense | 153,338.08 | 1.55% | Mainly paying environmental fines。 | Have the sustainability |
| End of Reporting period | End of same period of last year | Change in percentag | Reason for significant change |
| Amount | As a percentage of total assets(%) | Amount | As a percentage of total assets(%) | e(%) | ||
| Monetary fund | 1,018,543,763.36 | 23.69% | 1,165,048,108.83 | 27.77% | -4.08% | |
| Accounts receivable | 224,607,517.07 | 5.22% | 192,503,077.70 | 4.59% | 0.63% | |
| Inventories | 329,292,048.68 | 7.66% | 275,615,176.16 | 6.57% | 1.09% | |
| Real estate Investment | 171,714,892.81 | 3.99% | 173,105,806.27 | 4.13% | -0.14% | |
| Long-term equity investment | 20,519,573.38 | 0.48% | 20,380,734.56 | 0.49% | -0.01% | |
| Fixed assets | 1,021,301,163.50 | 23.75% | 656,133,200.19 | 15.64% | 8.11% | During the reporting period, TFT-LCD Phase II project carried forward fixed assets |
| Construction in process | 14,702,778.22 | 0.34% | 322,570,173.73 | 7.69% | -7.35% | During the reporting period, TFT-LCD Phase II project carried forward fixed assets |
| Short-term loans | 197,389,295.07 | 4.59% | 88,638,181.45 | 2.11% | 2.48% | |
| Long-term loans | 40,000,000.00 | 0.93% | 40,000,000.00 | 0.95% | -0.02% |
| Item | Amount at year beginning | Gain/loss on fair value change in the reporting period | Cumulative fair value change recorded into equity | Impairment provisions in the reporting period | Purchased amount in the reporting period | Sold amount in the reporting period | Amount at year end |
| Financial assets | |||||||
| 1. Financial assets measured at fair value through profit | 7,994,294.63 | -680,155.77 | 0.00 | 7,314,138.86 | |||
| or loss (excluding derivative financial assets) | |||||||
| Subtotal of financial assets | 7,994,294.63 | -680,155.77 | 7,314,138.86 | ||||
| Total | 7,994,294.63 | -680,155.77 | 7,314,138.86 | ||||
| Financial Liability | 0.00 | 0.00 |
VI. Sales of major assets and equity
I. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.II.Sales of major equity
□ Applicable √ Not applicable
The Company had no sales of major equity in the reporting period.
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
| Company name | Type | Main business | Registered capital | Total assets | Net assets | Turnover | Operating profit | Net Profit |
| Shenzhen Lisi Industrial Co., Ltd. | Subsidiary | Domestic Trade, Property management | 2,360,000.00 | 20,263,518.20 | 16,986,816.27 | 3,945,486.53 | 1,277,376.60 | 958,032.45 |
| Shenzhen Huaqiang Hotel | Subsidiary | Accommodation, business center; | 10,005,300.00 | 27,652,397.77 | 21,215,048.19 | 5,616,113.21 | 2,179,649.82 | 1,627,455.76 |
| Shenfang Property Management Co., Ltd. | Subsidiary | Property management | 1,600,400.00 | 9,598,191.15 | 3,578,845.41 | 4,951,532.27 | 179,259.68 | 134,444.77 |
| Shenzhen Beauty Century Garment Co., Ltd. | Subsidiary | Production of fully electronic jacquard knitting whole shape | 25,000,000.00 | 49,314,283.51 | 24,090,081.21 | 14,977,816.82 | -309,079.35 | -419,079.35 |
| Shenzhen Shengbo Opotoelectric Technology Co., Ltd | Subsidiary | Production and sales of polarizer | 583,333,333.00 | 3,348,534,345.86 | 2,782,231,879.95 | 392,382,938.55 | -13,104,422.26 | -13,141,819.59 |
| Shenzhen Shenfang Import & export Co., Ltd. | Subsidiary | Operating import and export business | 5,000,000.00 | 72,261,272.15 | 14,408,289.19 | 83,688,841.12 | 485,536.81 | 300,329.12 |
| Shengtou（HK）Co., Ltd. | Subsidiary | Sales of polarizer | HKD10,000.00 | 25,788,140.78 | 5,272,733.86 | 39,766,242.97 | 119,297.91 | 119,297.91 |
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year andexplanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
(1) Macroeconomic risks
In the second half of 2018, China will further deepen reform of the following points. First, structuralde-leverage is carried out. Second, fictitious economy is changed to the substantial economy. Third, the overalleconomic operation will be maintained stable under the influence of the trade war. However, as the new and oldeconomic drives and models are further prevailed by turn, liquidity crunch is still continuing. On the one hand,Sino-US trade war and the free trade zone agreements between countries such as Europe, the United States and
Japan have forced China’s manufacturing industry to face severe challenge under the “dual squeeze” of developed
countries and other developing countries. On the other hand, the country has proposed to implement the strategy
of building “manufacturing power”. The strategy is to promote the supplier of China’s manufacturing industry to
carry out structural reform. The existing manufacturing powers are in a critical period of overcoming difficultiesin a fiercely competitive market. As an important part of the electronic information industry, the industry in whichthe company is engaged in will be strongly supported by national policy, but the performance risks caused byunpredictable fluctuations in the macro economy can not eliminated.
Response measure: The company will pay close attention to and study the trend of industry policy,strengthen the tracking and analysis of important information in the industry, and timely grasp the developmenttrend of the industry. At the same time, the company will continue to optimize product structure, increase marketdevelopment capabilities, stimulate personnel vitality, and strengthen internal management, control business
risks to ensure the company’s steady development.
2. Competitive risk in the marketDue to the rapid update of the terminal display products, the requirement for the timely response totechnology and products has also become higher. The decline in product price has also imposed pressure on the
profitability of polarizer at the upstream level. China’s manufacturing industry has long confronted with theembarrassment of “lack of chips and display panels”, however, the polarizer industry is an important part ofChina’s future manufacturing development, as domestic products replacement process of the polarizer industry is
underway, and demand for large-size display panels and the requirements of the corresponding technologies are
changing with each passing day. If the company’s technology and products fail to meet the needs of its application
field in a timely manner, or the market competition leads to a decline in the price of the display products, it willhave an adverse impact on the company.
Response measure: On the one hand, the company will actively implement the Phase II project of polarizerfor TFT-LCD on line 6, laying the foundation for the improvement of production capacity, whilst activelypromoting the import of new product client, improving product bargaining power and fostering customer
confidence; On the other hand, the company will tap the market potential, increase market share, continuouslyimprove yield and utilization rate of production line, and enhance product competitiveness to cope with marketrisks.
3. Risk of raw materialAt present, the key raw materials required for the manufacture of polarizer, PVA film and TAC film, arebasically monopolized by Japanese companies, making the company constrained in the upstream supporting rawmaterial production line and production technology. Compared with the complete industry chain model ofupstream raw materials - polarizer - display panel from international manufacturers, the company does not realizeindustrial integration effect for the time being due to lack of corresponding supporting material. The price of the
main film materials is affected by the supplier’s production capacity, market demand and the Yen exchange rate,which affects the unit cost of the company’s products.
Response measure: The company will actively explore the import substitution of raw materials, increase theresearch and development of independent intellectual property, while continuing to improve production stabilityand continuity, increase the utilization rate and maintain a low level of production loss rate to reduce productioncosts; The company can choose to lock the forward exchange rate if necessary to avoid large exchange lossescaused by sharp exchange rate fluctuations.
V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| Annual Genral Meeting of 2017 | Annual General Meeting | 48.94% | April 19,2018 | April 20,2018 | Announcement No.2018-19 www.cninfo.com.cn |
| The first provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General Meeting | 48.94% | June 20,2018 | June 21,2018 | Announcement No.2018-27 www.cninfo.com.cn |
reserve into share capital.III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,senior management personnel and other related parities.
√ Applicable □Not applicable
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Peiod of commitment | Fulfillment |
| Commitment on share reform | Shenzhen Investment Holdings Co., Ltd. | Share reduction commitment | As Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of the company, committed when the restricted-for-sale shares from the shares restructuring were listed for circulation in the market: i. if they plan to sell the shares through the securities exchange system in the future, and the decrease of the shares they hold reaches 5% within 6 months after the first decrease, they will disclose an announcement indicating the sale through the company within two trading days before the first decrease; ii. They shall strictly observe the “Guidelines on Transfer of Restricted-for-sale Original Shares of Listed Companies” and the provisions of the relevant business principles of Shenzhen Stock Exchange. | August 4, 2006 | Sustained and effective | Under Fulfillment |
| Commitment in the acquisition report or the report on equity changes | ||||||
| Commitment made upon the assets replacement | Shenzhen Investment Holdings Co., Ltd. | Commitments on horizontal competition, related transaction and capital occupation | Shenzhen Investment Holdings Co., Ltd. signed a “Letter of Commitment and Statement on Horizontal Competition Avoidance” when the company issued non-public stocks in 2009. Pursuant to the Letter of Commitment and Statement, Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiary, subsidiaries under control or any other companies that have actual control of it shall not be involved in the business the same as or similar to those Shenzhen Textile currently or will run in the future, or any businesses or activities that may constitute direct or indirect competition with Shenzhen Textile; if the operations of Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control or other companies that have actual | October 9, 2009 | Sustained and effective | Under Fulfillment |
| control of it compete with Shenzhen Textile in the same industry or contradict the interest of the issuer in the future, Shenzhen Investment Holdings Co., Ltd. shall urge such companies to sell the equity, assets or business to Shenzhen Textile or a third party; when the horizontal competition may occur due to the business expansion concurrently necessary for Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control or other companies that have actual control of it and Shenzhen Textile, Shenzhen Textile shall have priority. | ||||||
| Shenzhen Investment Holdings Co., Ltd. | Commitments on horizontal competition, related transaction and capital occupation | The commitments during the period non-public issuance in 2012: 1. Shenzhen Investment Holdings, as the controlling shareholder of Shenzhen Textile, currently hasn't the production and business activities of inter-industry competition with Shenzhen Textile or its share-holding subsidiary. 2. Shenzhen Investment Holdings and its share-holding subsidiaries or other enterprises owned the actual control rights can't be directly and indirectly on behalf of any person, company or unit to engage in the same or similar business in any districts in the future by the form of share-holding, equity participation, joint venture, cooperation, partnership, contract, lease, etc., and ensure not to use the controlling shareholder's status to damage the legitimate rights and interests of Shenzhen Textile and other shareholders, or to gain the additional benefits. 3. If there will be the situation of inter-industry competition with Shenzhen Textile for Shenzhen Investment Holdings and its share-holding subsidiaries or other enterprises owned the actual control rights in the future, Shenzhen Investment Holdings will promote the related enterprises to avoid the inter-industry competition through the transfer of equity, assets, business and other ways. 4. Above commitments will be continuously effective and irrevocable during Shenzhen Investment Holdings as the controlling shareholder of Shenzhen Textile or indirectly controlling Shenzhen Textile. | July 14, 2012 | Sustained and effective | Under Fulfillment | |
| Equity incentive commitment | Shenzhen Textile(Holdings) Co., Ltd. | Other commitment | 1.The company undertakes not to provide loans, loan guarantees, and any other forms of financial assistance to the incentive objects for obtaining the restricted stocks in the incentive plan; 2. The company undertakes that there is no circumstance that the stock incentive shall be prohibited as stipulated in the provisions of Article 7 of the “Measures for the Management of Stock Incentives of Listed Companies”. | November 27,2017 | December 27,2021 | Under Fulfillment |
| Other commitme |
| nts made to minority shareholders | ||
| Executed timely or not? | Yes | |
| If the commitments failed to complete the execution when expired, should specifically explain the reasons of unfulfillment and the net stage of the working plan | Not applicable | |
| Basic conditions of litigation (arbitration) | Amount involved （Ten thousand | Forming of the predicted | Litigation (arbitration) progre | Litigation (arbitration) judgement result and influence | Litigation (arbitration) judgement execution condition | Date of disclosure | Index of disclosure |
| yuan ） | debt | ss | |||||
| Shenzhen Guanhua Printing and Dyeing Co., Ltd. v. the company and Qiaohui Industrial Co., Ltd. Contract Dispute Request: Require the company to strictly fulfill the contractual joint venture liability for capital contribution. | 72.6 | No | In the execution | 1. Confirm that the land use right of 5682.06 square meters recorded in the "Real Estate Certificate" of the deeproom land character 4000275003 is owned by the applicant Guanhua Company; 2. The company shall fulfill the obligation of the investor and, in accordance with the relevant national and local laws, regulations and regulations, within five days from the date of this ruling, change and register the obligee of the deeproom land character 4000275003 Real Estate Certificate as the applicant Guanhua Company. The company and Qiaohui Industrial Co., Ltd. shall cooperate with the above registration procedures within five days from the date of this award. 3. The arbitration fee of RMB 726,000 in this case shall be borne by the company. The fee has been paid in advance by the applicant, and the company shall pay Guanhua Company directly. 4, in accordance with the requirements of the Shenzhen intermediate people's court execution notice. | In the execution |
plan totaled 4,752,300 shares, and 119 incentive objects were granted, with the granting price was 5.73 yuan per
share.For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017—62-68).On December 27, 2017, the company’s restricted stock completed the grant registration formalities at China
Securities Depository and Clearing Corporation Shenzhen Branch.
During the reporting period, there was no progress or change in the above plan.
XII.Material related transactions1. Related transactions in connection with daily operation
√ Applicable □Not applicable
| Related parties | Relationship | Type of trade | Subjects of the related transactions | Principle of pricing the related transactions | Price of trade | Amount of trade (ten thousand) | Ratio in similar trades | Trading limit approved(ten thousand) | Whether over the approved limited or not (Y/N) | Way of payment | Market price of similar trade available | Date of disclosure | Index of information disclosure |
| Tianma Microelectronic Co., Ltd. | The Chairman of the Company was Vice Chairman of the company | Sale products to related parties | Sales of polarizer sheet | Market Principle | Agreement price | 116.6 | 0.35% | 600 | No | Transfer | 116.60 | ||
| Total | -- | -- | 116.6 | -- | 600 | -- | -- | -- | -- | -- | |||
| Details of any sales return of a large amount | Not applicable | ||||||||||||
| Give the actual situation in the report period where a forecast had been made for the total amounts of routine related-party transactions by type to occur in the current period(if any) | Not applicable | ||||||||||||
| Reason for any significant difference between the transaction price and the market refernce price (if applicable) | Not applicable | ||||||||||||
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □No
Due from related parties
| Related parties | Relationship | Causes of formation | Does there exist non-operation capital occupancy? | Opening balance (ten thousand) | Newly increased amount in the reporting period(ten thousand) | Amount recovered in the reporting period(ten thousand) | Interest rate | Interest in the reporting period(ten thousand) | Ending balance (ten thousand) |
| Shenzhen Tianma Microelectronics Co., Ltd. | The Chairman of the Company was Vice Chairman of the company | Sale products | No | 155.55 | 136.11 | 222.8 | 68.86 | ||
| Anhui Huapeng Textile Co., Ltd. | Sharing company | Contract fee | No | 180 | 0 | 0 | 180 | ||
| Shenzhen Dailishi Underwear Co., Ltd. | Sharing company | Contract fee | No | 100 | 50 | 100 | 50 | ||
| Influence of the related rights of credit and liabilities upon the company’s operation | In the report period,Increase investment income of RMB 500,000. | ||||||||
results and financial
position
Due to related parties
| Related parties | Relationship | Causes of formation | Opening balance(ten thousand) | Amount newly increased in the reporting period(ten thousand) | Amount repaid in the reporting period(ten thousand) | Interest rate | Interest in the reporting period(ten thousand) | Ending balance (ten thousand) |
| Shenzhen Xinfang Knitting Co., Ltd. | Sharing company | Current amount | 24.48 | 24.48 | ||||
| Shenzhen Changlianfa Printing & dyeing Co., Ltd. | Sharing company | Current amount | 117.85 | 117.85 | ||||
| Shenzhen Haohao Property Leasing Co., Ltd | Sharing company | Current amount | 410.45 | 35 | 445.45 | |||
| Yehui International Co., Ltd. | Sharing company | Current amount | 113.54 | 0.97 | 114.51 | |||
| Shengbo（HK）Co., Ltd. | Sharing company | Current amount | 31.5 | 31.5 | ||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | Controlled by the same party | Interest payable | 4,557.07 | 107.25 | 4,464.31 | |||
| Indluence of the related rights of credit and liabilities upon the company’s operation results and financial position. | In the report period, Increase financial interest expense of RMB 1.0725 million. | |||||||
5. Other significant related-party transactions
√Applicable □Not applicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic TechnologyCo., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank, Shenzhen
Branch, First Tower Subbranch signed “Contract on Consigned Loan”, of whose main content is:
Shenzhen Shenchao Technology Investment Co., Ltd applied to the bank for 200 million RMB of construction ofdedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo OptoelectronicTechnology Co., Ltd The term of the loan is 108 months from the day when the first installment of entrusted loanis transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercial loanswith a term of 5 years quoted by People's Bank of China minus 2%. In case of adjustment of such commercialloan rate, the rate of commercial loans with a term of 5 years after adjustment minus 2% shall apply as interestrate of entrusted loan from the first day of the next month after the adjustment of basic interest rate. The term ofthe loan is 108 months from the day when the first installment of entrusted loan is transferred to the account of theCompany.As of June 30,2018,The Company actually received a loan of RMB 40 million.Website for temporary disclosure of the connected transaction
| Announcement | Date of disclosure | Website for disclosure |
| Announcement of related Transactions | December 12, 2009 | http//www.cninfo.com.cn. Announcement No.2009-55 |
| Announcement of Resolutions of the Second provisional shareholders’ general meeting | December 30,2009 | http//www.cninfo.com.cn. Announcement No.2009-57 |
| Announcement of related Transactions progress | July 1, 2010 | http//www.cninfo.com.cn. Announcement No.2010-26 |
No any contract for the Company in the reporting period.(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..2.Guarantees
□Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contract
√ Applicable □ Not applicable
| The name of the contracting company | The name of the contracted Company | Contract object | The date of signature of the contract | The book value of the assets involved in the contract (Ten thousand)(If any) | The assessed value of the assets involved in the contract(Ten thousand)(If any) | Name the evaluation organization（If any） | The Base Date evaluation(If any) | Pricing principles | Bargain price (Ten thousand) | Whether connected transaction (Y/N) | Incidence relation | The performance by the end of the term | The date of disclosure | Index |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | Hangzhou Jinjiang Group, Kunshan Zhiqimei Material Technology Co., Ltd.and、Nitto Denko Co. | Nitto Denko provides manufacturing technology support for polarizers and related cooperat | November 6,2017 | No | Taking into account the market price, technical service period, etc., the final transaction price is based on | 86,900 | No | No relationship with the company | Normal performance | November 7,2017 | See on http://www.cninfo.com.cn announcement (Announcement No.:2017-53) on November 7,2017 |
| ion | the results of commercial negotiations between the two parties. |
| Company or subsidiary name | Main pollutant and specific pollutant name | Emission way | Emission port number | Emission port distribution condition | Emission concentration (mg/Nm3) | Implemented pollutant emission standards | Total emission | Verified total emission(Tons) | Excessive emission condition |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | Exhaust gas: total non-methane hydrocarbons | Altitude emission | 2 | The discharge port is located on the east side of the roof of Building No. 1 | <70mg/m? | 120mg/m? | 12.6tons | 21.6tons | No |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | Effluents：COD | Open channel discharge after treatment | 1 | Southeast side of plant area | <60mg/L | 90mg/L | 9 tons | 13.5tons | No |
gas treatment, it has been running for 5 years to date, and the equipment runs stably and the waste gas treatmenthas a good effect, which can fully meet the emission requirements of discharge gas. Meanwhile, the equipmentadopted the imported thermal storage material, with the heat storage effect reached 90%, so that the equipmentoperation had low energy consumption; after RTO treatment, the exhaust gas produced by the production processcan meet the discharge standard.Wastewater of Pingshan plant:
2. The waste gas treatment facility on line 6 uses a rotary RTO regenerative incineration process. Built
together with the production equipment of project on line 6, this equipment is rotary RTO manufactured by KoreaTECHWIN Co., Ltd., which was put into operation at the end of 2017. The equipment is stable in operation, withgood waste gas treatment effect. The organic waste gas produced in the workshop is discharged after beingincinerated by RTO.
Wastewater discharged from Pingshan factoryThe wastewater treatment facility was put into use in May 18 after the expansion of project on line 6. Theequipment runs stably, with a high degree of automation, achieving good wastewater treatment effect. After thenew process is built, the wastewater treatment system has strong shock resistance under high load and thewastewater treatment effect is further optimized. The wastewater generated in the production process can meet theenvironmental requirements for standardized discharges after being treated by the wastewater treatment facility.
After the removal of the coating line of Longhua factory, no organic waste gas has been produced.
Situation of Construction project environmental impact assessment and other environmental protectionadministrative licenses
The company complied with the relevant regulations for environmental protection construction “ThreeSimultaneities” and obtained environmental approvals at various stages, including: Environmental Impact
Assessment Report, Environmental Assessment Approval, Environmental Protection Acceptance Decision, andPollutant Discharge Permit.
Emergency Plan for Emergency Environmental IncidentsAccording to the actual situation of the company, the preparation of the emergency plan for emergency
environmental incidents was completed, and an emergency environmental emergency plan filing application was
Environmental Self-Monitoring ProgramAccording to the monitoring requirements issued by the monitoring station, the specific monitoring programs
are as follows: organic exhaust gas is 4 times per year (once per quarter), wastewater discharge is 4 times per year(once per quarter), boiler exhaust gas is 2 times per year (once every six months), and canteen fume is 2 times peryear (once every six months), the noise at the plant boundary is 2 times per year (once every six months).
2.Overview of the annual targeted poverty alleviationThe company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.
XVI.Other material events
√ Applicable □Not applicable
(1) Progress information about the second phase of No.6 line TFT-LCD polarizer project
In view of the fact that the price of 32-inch polarizer products in the end of 2017 has dropped to a certainextent, in order to adjust the product structure and better undertake the business of super-large-size polarizerproducts with higher profits, the company launched the optimization and upgrading of the mainframe equipmentof the second phase of Line 6 at the end of 2017. During the reporting period, the technical renovation andcommissioning of the TFT-LCD Polarizer Phase II Line 6 project were completed. By June 30, 2018, the Line 6project had been consolidated and entered the stage of mass production.
(II) Progress in subsidiaries participating in the establishment of industrial funds
On November 16, 2017, the company's controlling subsidiary Shengbo Optoelectronic Co., Ltd signed theChangxing Junying Equity Investment Partnership (Limited Partnership) Agreement with the fund managerHuizhi Investment Management Co., Ltd, general partner Jinxin Investment Co., Ltd and other limited partners,and co-sponsored the establishment of an industrial fund, focusing on the optical film industry chain relatedprojects related to the company's main business, with a fund size of 50 million yuan. Sapo Photoelectric Co., Ltd,as one of the limited partners of the industrial fund, subscribed for a capital contribution of 28.5 million yuan.
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--53).
As of June 30, 2018, Changxing Junying had accumulated 3 investment projects with a total investment of RMB42 million.
| No | Name | Investment | Fund contribution （Ten thousand） |
| 1 | Shenzhen Kaichuang Shijia Technology Co., Ltd. | Optical Film | 1,400 |
| 2 | Shenzhen shenfuyu Electronic Technology Co., Ltd. | Optical Film | 1,300 |
| 3 | Shenzhen Hengbaoshun Technology Development Co., Ltd. | Optical Film | 1,500 |
Announcement of Technical Cooperation Contracts (2017-53).
At present, in the normal implementation of the Technical Cooperation Contract, the company hascommunicated with Nitto Denko on the schedule, plant planning and design, equipment specification parametersof the No. 7 line project. The company originally disclosed that it intends to cooperate with professionalinvestment institutions, initiated by Jinjiang Group, and Shengbo Optoelectronic participated in the establishment
of the polarizer industry fund, and the “project company” established by the fund and Sapo Photoelectric Co., Ltdas the main construction investment construction No. 7 The line project. After the establishment of the “projectcompany”, the company will inherit the responsibility of Sapo Photoelectric Co., Ltd in the Technical Cooperation
Contract and pay the relevant technology licensing fees. Currently, due to the immaturity of the establishment ofthe industrial fund, the company will use other financing methods to invest the construction of Line 7 project, it
also will not establish a “project company” as the main body of construction.
(V) Progress in construction of NO. 7 line project
The NO.7 line project being developed by the company, namely the ultra-large-size TV polarizerindustrialization project (No.7 Line), has passed the project approval and feasibility study as well as the expertreview. The company is actively carrying out preparatory work such as plant planning, equipment selection, andNitto technical support agreement negotiations on the No. 7 line project. As of the disclosure date of this report,the project has been reviewed and approved at the thirteenth meeting of the seventh board of directors, and it stillneeds to be implemented after the company's second extraordinary shareholders meeting in 2018.
.For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--33).
(VI) Progress in introduction of strategic investors by subsidiariesTo improve the operation of the subsidiary, Shengbo Optoelectronic Co., Ltd, the company introduced JinjiangGroup as a strategic investor at the level of Sapo Photoelectric Co., Ltd at the end of 2016, injecting 1.353 billionyuan in cash for Shengbo Optoelectronic Co., Ltd , and Jinhang Investment company, as the actual controller ofJinjiang Group, holds 40% of the shares. In order to give full play to the institutional and institutional advantagesof private enterprises and the resource advantages of state-owned enterprises, the company and Jinjiang Groupsigned a "Cooperation Agreement", Jinjiang Group has made a performance commitment to ShengboOptoelectronics. The performance commitment is detailed in Juchao Information Network(http://www.cninfo.com.cn) March 29, 2018 "Shenzhen Shenzhen Sheng" Special instructions for the completionof 2017 annual performance promise of Optoelectronics Technology Co., Ltd.
XVII. Material events of subsidiaries
√ Applicable □Not applicable
During the reporting period, in order to further optimize the shareholding structure of Shengbo OptoelectronicCo., Ltd , a holding subsidiary, give full play to the institutional and mechanical advantages of mixed ownership,and improve the acquisition and integration of the optical film industry chain to seize the good marketopportunities, as well as achieve the goal of strengthening and making polarizing optical films and other opticalfilm main industries, on the basis of introducing strategic investor Jinjiang Group, the company planned toincrease capital and expand shares to introduce other strategic investors again on the level of Sapo PhotoelectricCo., Ltd. On June 1, 2018, the company held the twelfth meeting of the seventh board of directors to deliberateand adopt the Proposal on the Introduction of Strategic Investors by the Capital Increase and Share Expansion ofShenzhen Sapo Photoelectric Co., Ltd, agreeing that the subsidiary Shengbo Optoelectronic Co., Ltd could openlycollect no more than five strategic investors at Shenzhen United Property and Share Rights Exchange anddetermine the final strategic investors through competitive negotiations, based on the method of capital increase
and shareholding, based on the results of the asset evaluation on the record, in accordance with the regulations onstate-owned assets. The company will further fulfill the corresponding review procedures and informationdisclosure obligations according to the progress of the matter.
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital1. Changes in share capital
In shares
| Before the change | Increase/decrease（+，-） | After the Change | |||||||
| Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| 1.Shares with conditional subscription | 4,824,300 | 0.94% | 5,250 | 5,250 | 4,829,550 | 0.94% | |||
| 3.Other domestic shares | 4,824,300 | 0.94% | 5,250 | 5,250 | 4,829,550 | 0.94% | |||
| Domestic Nature shares | 4,824,300 | 0.94% | 5,250 | 5,250 | 4,829,550 | 0.94% | |||
| II.Shares with unconditional subscription | 506,449,849 | 99.06% | -5,250 | -5,250 | 506,444,599 | 99.06% | |||
| 1.Common shares in RMB | 457,021,849 | 89.39% | -5,250 | -5,250 | 457,016,599 | 89.39% | |||
| 2.Foreign shares in domestic market | 49,428,000 | 9.67% | 49,428,000 | 9.67% | |||||
| III. Total of capital shares | 511,274,149 | 100.00% | 511,274,149 | 100.00% | |||||
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In shares
| Shareholder Name | Initial Restricted Shares | Number of Unrestricted Shares This Term | Number of Increased Restricted Shares This Term | Restricted Shares in the End of the Term | Reason for Restricted Shares | Date of Restriction Removal |
| Zhang Xiaodong | 0 | 0 | 5,250 | 5,250 | Supervisors hold 75% of the shares as required | The shares transferred annually during the term of office determined during the term of office and within 6 months after the expiration of the term of office shall not exceed 25% of the total number of shares of the company held by the company. |
| Total | 0 | 0 | 5,250 | 5,250 | -- | -- |
| Total number of common shareholders at the end of the reporting period | 36,545 | Total number of preferred shareholders that had restored the voting right at the end of the reporting period (if any) (note 8) | 0 | ||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | |||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | ||
| State of share | Amount | ||||||||
| Shenzhen Investment Holdings Co., Ltd. | State-owned legal person | 45.78% | 234,069,436 | 0 | 0 | 234,069,436 | |||
| Shenzhen Shenchao Technology Investment Co., | State-owned Legal person | 3.15% | 16,129,032 | 0 | 0 | 16,129,032 | |||
| Ltd. | ||||||||||
| Fujiang Bairui Jiayuan, Asset Management Co., Ltd.－Bairui Jiayuan Growth I Fund | Domestic non State-owned Legal person | 0.77% | 3,954,735 | 2,773,200 | 0 | 3,954,735 | ||||
| Sun Huiming | Domestic Nature person | 0.62% | 3,192,767 | 126,200 | 0 | 3,192,767 | ||||
| Li Songqiang | Domestic Nature person | 0.55% | 2,833,078 | 2,833,078 | 0 | 2,833,078 | ||||
| Zheng Junsheng | Domestic Nature person | 0.36% | 1,830,000 | 1,130,000 | 0 | 1,830,000 | ||||
| Liu Dongxia | Domestic Nature person | 0.30% | 1,544,800 | 0 | 0 | 1,544,800 | ||||
| Zhu Ye | Domestic Nature person | 0.22% | 1,131,945 | -200,000 | 0 | 1,131,945 | ||||
| Deng Hua | Domestic Nature person | 0.21% | 1,051,404 | 187,904 | 0 | 1,051,404 | ||||
| Hong Fan | Domestic Nature person | 0.20% | 1,028,900 | 35,100 | 0 | 1,028,900 | ||||
| Related or acting-in-concert parties among shareholders above | Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the Company did not whether there is relationship between the top ten shareholders holding non-restricted negotiable shares and between the top ten shareholders holding non-restricted negotiable shares and the top 10 shareholders or whether they are persons taking concerted action defined in Regulations on Disclosure of Information about Shareholding of Shareholders of Listed Companies. | |||||||||
| Shareholding of top 10 shareholders of unrestricted shares | ||||||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | ||||||||
| Share type | Quantity | |||||||||
| Shenzhen Investment Holdings Co., Ltd. | 234,069,436 | RMB Common shares | 234,069,436 | |||||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | 16,129,032 | RMB Common shares | 16,129,032 | |||||||
| Fujiang Bairui Jiayuan, Asset Management Co., Ltd.－Bairui Jiayuan Growth I Fund | 3,954,735 | RMB Common shares | 3,954,735 | |||||||
| Sun Huiming | 3,192,767 | Foreign shares placed in | 3,192,767 | |||||||
| domestic exchange | |||
| Li Songqiang | 2,833,078 | RMB Common shares | 2,833,078 |
| Zheng Junsheng | 1,830,000 | RMB Common shares | 1,830,000 |
| Liu Dongxia | 1,544,800 | RMB Common shares | 1,544,800 |
| Zhu Ye | 1,131,945 | RMB Common shares | 1,131,945 |
| Deng Hua | 1,051,404 | RMB Common shares | 1,051,404 |
| Hong Fan | 1,028,900 | RMB Common shares | 1,028,900 |
| Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this, the Company did not whether there is relationship between the top ten shareholders holding non-restricted negotiable shares and between the top ten shareholders holding non-restricted negotiable shares and the top 10 shareholders or whether they are persons taking concerted action defined in Regulations on Disclosure of Information about Shareholding of Shareholders of Listed Companies. | ||
| Explanation on shareholders participating in the margin trading business(if any )(See Notes 4) | The Company Shareholder Fujiang Bairui Jiayuan, Asset Management Co., Ltd.－Bairui Jiayuan Growth I Fund holds 3,954,735 shares of the Company through stock account with credit transaction; The Company Shareholder Li Songqiang holds 1,837,653 shares of the Company through stock account with credit transaction ; The Company Shareholder Liu Dongxia holds 1,544,800 shares of the Company through stock account with credit transaction ; The Company Shareholder Zhu Ye holds 1,031,945 shares of the Company through stock account with credit transaction ; The Company Shareholder Deng Hua holds 1,051,404 shares of the Company through stock account with credit transaction. | ||
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
√Applicable □ Not applicable
| Name | Positions | Office status | Beginning shareholding (shares) | Increase in the Current Period (shares) | Decrease in the Current Period (shares) | Ending shareholding (shares) | Number of granted restricted shares at the period-begin (shares) | Number of restricted shares granted in the Current Period (shares) | Number of granted restricted shares at the period-end (shares) |
| Zhang Xiaodong | Supervisor | In Office | 0 | 7,000 | 0 | 7,000 | 0 | 0 | 0 |
| Total | -- | -- | 0 | 7,000 | 0 | 7,000 | 0 | 0 | 0 |
| Name | Title | Type | Date | Reason |
| Lin Lebo | Director | Dimission | May 24,2018 | Job Change |
| Zhao Lin | Director | Elected | June 20,2018 | |
| Zhao Lin | Director | Dimission | July 24,2018 | Job Change |
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual reportNo
X. Financial Report1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial StatementsStatement in Financial Notes are carried in RMB/CNY1. Consolidated balance sheetPrepared by: Shenzhen Textile (Holdings) Co., Ltd.
June 30,2018
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Monetary fund | 1,018,543,763.36 | 1,165,048,108.83 |
| Settlement provision | ||
| Outgoing call loan | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | 1,668,992.95 | 44,207,119.00 |
| Account receivable | 224,607,517.07 | 192,503,077.70 |
| Prepayments | 195,851,353.47 | 13,755,152.05 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Interest receivable | 18,833,479.86 | 15,728,872.62 |
| Dividend receivable | ||
| Other account receivable | 12,418,279.70 | 12,925,984.45 |
| Repurchasing of financial assets | ||
| Inventories | 329,292,048.68 | 275,615,176.16 |
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | 1,120,702,098.15 | 1,148,689,874.10 |
| Total of current assets | 2,921,917,533.24 | 2,868,473,364.91 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Disposable financial asset | 65,355,577.27 | 66,035,733.04 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 20,519,573.38 | 20,380,734.56 |
| Property investment | 171,714,892.81 | 173,105,806.27 |
| Fixed assets | 1,021,301,163.50 | 656,133,200.19 |
| Construction in progress | 14,702,778.22 | 322,570,173.73 |
| Engineering material | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 38,222,487.94 | 38,870,673.40 |
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 1,182,723.32 | 1,035,290.08 |
| Deferred income tax asset | 2,625,253.73 | 1,974,536.90 |
| Other non-current asset | 42,346,134.84 | 47,166,994.48 |
| Total of non-current assets | 1,377,970,585.01 | 1,327,273,142.65 |
| Total of assets | 4,299,888,118.25 | 4,195,746,507.56 |
| Current liabilities | ||
| Short-term loans | 197,389,295.07 | 88,638,181.45 |
| Loan from Central Bank | ||
| Deposit received and hold for others | ||
| Call loan received | ||
| Financial liabilities measured at fair value with variations accounted into |
| current income account | ||
| Derivative financial liabilities | ||
| Note payable | 19,500,000.00 | |
| Account payable | 62,207,789.24 | 97,104,697.18 |
| Advance payment | 38,236,394.76 | 34,952,567.83 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 18,341,973.20 | 29,503,260.65 |
| Tax payable | 8,671,873.10 | 6,935,262.57 |
| Interest payable | 47,090,395.53 | 45,799,544.04 |
| Dividend payable | ||
| Other account payable | 202,634,969.35 | 155,026,799.54 |
| Reinsurance fee payable | ||
| Insurance contract provision | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 40,000,000.00 | |
| Other current liability | ||
| Total of current liability | 594,072,690.25 | 497,960,313.26 |
| Non-current liabilities： | ||
| Long-term loan | 40,000,000.00 | 40,000,000.00 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | ||
| Long-term payable employees’s remuneration | ||
| Special payable | ||
| Expected liabilities | ||
| Deferred income | 134,350,896.96 | 134,767,064.72 |
| Deferred income tax liability | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 174,350,896.96 | 174,767,064.72 |
| Total of liability | 768,423,587.21 | 672,727,377.98 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,869,452,669.17 | 1,866,001,475.17 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 1,828,936.20 | 2,218,703.87 |
| Special reserves | ||
| Surplus reserves | 77,477,042.19 | 77,477,042.19 |
| Common risk provision | ||
| Undistributed profit | -22,619,111.29 | -32,266,087.44 |
| Total of owner’s equity belong to the parent company | 2,410,183,006.27 | 2,397,474,603.79 |
| Minority shareholders’ equity | 1,121,281,524.77 | 1,125,544,525.79 |
| Total of owners’ equity | 3,531,464,531.04 | 3,523,019,129.58 |
| Total of liabilities and owners’ equity | 4,299,888,118.25 | 4,195,746,507.56 |
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Monetary fund | 383,109,930.25 | 413,700,327.95 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 546,368.83 | 449,536.21 |
| Prepayments | 38,820.00 | 10,000.00 |
| Interest receivable | 18,735,478.37 | 13,660,866.80 |
| Dividend receivable | ||
| Other account receivable | 12,636,498.23 | 5,782,620.63 |
| Inventories | ||
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | 160,000,000.00 | 120,000,000.00 |
| Total of current assets | 575,067,095.68 | 553,603,351.59 |
| Non-current assets： | ||
| Disposable financial asset | 35,355,577.27 | 36,035,733.04 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 1,987,829,417.05 | 1,984,849,008.23 |
| Property investment | 164,478,188.20 | 165,607,900.07 |
| Fixed assets | 27,351,496.92 | 28,119,990.58 |
| Construction in progress | ||
| Engineering material | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 1,212,840.21 | 1,413,305.67 |
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Differed income tax asset | 2,252,235.59 | 1,526,871.33 |
| Other non-current asset | 493,620.44 | |
| Total of non-current assets | 2,218,479,755.24 | 2,218,046,429.36 |
| Total of assets | 2,793,546,850.92 | 2,771,649,780.95 |
| Current liabilities | ||
| Short-term loans | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities |
| Note payable | ||
| Account payable | 411,743.57 | 411,743.57 |
| Advance payment | 639,024.58 | 639,024.58 |
| Employees’ wage payable | 6,298,397.27 | 8,495,538.21 |
| Tax payable | 4,961,074.06 | 3,247,028.64 |
| Interest payable | ||
| Dividend payable | ||
| Other account payable | 137,467,469.73 | 134,018,771.57 |
| Liabilities held for sales | ||
| Non-current liability due in 1 year | ||
| Other current liability | ||
| Total of current liability | 149,777,709.21 | 146,812,106.57 |
| Non-current liabilities： | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | ||
| Employees’ wage payable | ||
| Special payable | ||
| Expected liabilities | ||
| Differed income | 750,000.00 | 800,000.00 |
| Deferred income tax liability | ||
| Other non-current liabilities | ||
| Total of Non-current liabilities | 750,000.00 | 800,000.00 |
| Total of liability | 150,527,709.21 | 147,612,106.57 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instrument | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,603,658,924.96 | 1,599,381,854.96 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 1,828,936.20 | 2,218,703.87 |
| Special reserves | ||
| Surplus reserves | 77,477,042.19 | 77,477,042.19 |
| Undistributed profit | 476,010,768.36 | 460,916,603.36 |
| Total of owners’ equity | 2,643,019,141.71 | 2,624,037,674.38 |
| Total of liabilities and owners’ equity | 2,793,546,850.92 | 2,771,649,780.95 |
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 538,288,050.61 | 739,337,756.87 |
| Incl：Business income | 538,288,050.61 | 739,337,756.87 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 562,709,531.95 | 747,682,301.68 |
| Incl：Business cost | 479,118,600.37 | 677,617,195.79 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Insurance policy dividend paid | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 3,840,556.12 | 6,589,017.85 |
| Sales expense | 3,780,411.53 | 4,007,043.14 |
| Administrative expense | 62,428,219.55 | 40,846,568.49 |
| Financial expenses | -3,852,587.66 | -12,037,356.58 |
| Asset impairment loss | 17,394,332.04 | 30,659,832.99 |
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | 28,552,710.15 | 22,955,035.39 |
| Incl: investment gains from affiliates | 616,945.67 | 220,115.63 |
| Gains from currency exchange | ||
| Assets dispose loss |
| Other income | 5,812,167.76 | 5,143,961.90 |
| III. Operational profit（ “-” for loss） | 9,943,396.57 | 19,754,452.48 |
| Add ：Non-operational income | 89,905.17 | 528,419.77 |
| Less：Non-business expenses | 153,338.08 | 3,478.36 |
| IV.Total profit (“-” for loss) | 9,879,963.66 | 20,279,393.89 |
| Less：Income tax expenses | 5,321,864.53 | 7,742,958.27 |
| V. Net profit | 4,558,099.13 | 12,536,435.62 |
| 1.Net continuing operating profit | 4,558,099.13 | 12,536,435.62 |
| 2.Termination of operating net profit | ||
| Net profit attributable to the owners of parent company | 9,646,976.15 | 14,457,841.63 |
| Minority shareholders’ equity | -5,088,877.02 | -1,921,406.01 |
| VI.Net of profit of other comprehensive income | -389,767.67 | -74,028.91 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -389,767.67 | -74,028.91 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -389,767.67 | -74,028.91 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | -510,116.82 | 325,291.89 |
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedg |
| es and losses | ||
| 5.Translation differences in currency financial statements | 120,349.15 | -399,320.80 |
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 4,168,331.46 | 12,462,406.71 |
| Total comprehensive income attributable to the owner of the parent company | 9,257,208.48 | 14,383,812.72 |
| Total comprehensive income attributable minority shareholders | -5,088,877.02 | -1,921,406.01 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.02 | 0.03 |
| (II)Diluted earnings per share | 0.02 | 0.03 |
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 33,343,899.42 | 31,849,598.03 |
| Incl：Business cost | 6,934,259.58 | 6,083,265.84 |
| Business tax and surcharge | 1,458,413.46 | 1,364,623.95 |
| Sales expense | ||
| Administrative expense | 14,436,569.89 | 10,388,438.80 |
| Financial expenses | -7,833,271.26 | -6,361,722.17 |
| Asset impairment loss | 365,826.86 | -3,652,130.67 |
| Add：Gains from change of fir value （“-”for loss） |
| Investment gain（“-”for loss） | 1,191,719.82 | 2,146,702.07 |
| Incl: investment gains from affiliates | 616,945.67 | 220,115.63 |
| Assets disposal income | ||
| Other income | 50,000.00 | |
| II. Operational profit（ “-” for loss） | 19,223,820.71 | 26,173,824.35 |
| Add ：Non-operational income | 79,604.02 | 1,510.00 |
| Less：Non-business expenses | 1,582.15 | |
| III.Total profit (“-” for loss) | 19,303,424.73 | 26,173,752.20 |
| Less：Income tax expenses | 4,209,259.73 | 6,378,081.15 |
| IV. Net profit（ “-” for net loss） | 15,094,165.00 | 19,795,671.05 |
| 1.Net continuing operating profit | 15,094,165.00 | 19,795,671.05 |
| 2.Termination of operating net profit | ||
| V.Net of profit of other comprehensive income | -389,767.67 | -74,028.91 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II）Other comprehensive income that will be reclassified into profit or loss. | -389,767.67 | -74,028.91 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | -510,116.82 | 325,291.89 |
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency fin | 120,349.15 | -399,320.80 |
| ancial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | 14,704,397.33 | 19,721,642.14 |
| VII. Earnings per share： | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
| Items | Report period | Same period of the previous year |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 510,486,141.19 | 795,578,837.63 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Net increase of trade financial asset disposal | ||
| Cash received as interest, processing fee and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Tax returned | 24,120,883.81 | 23,710,137.30 |
| Other cash received from business operation | 26,160,799.70 | 35,648,684.61 |
| Sub-total of cash inflow | 560,767,824.70 | 854,937,659.54 |
| Cash paid for purchasing of merchandise and services | 560,096,998.00 | 737,896,239.33 |
| Net increase of client trade and advance | ||
| Net increase of savings n central bank and brother company | ||
| Cash paid for original contract claim | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 76,371,093.88 | 69,775,248.99 |
| Taxes paid | 27,570,325.99 | 53,257,411.02 |
| Other cash paid for business activities | 25,580,296.27 | 92,185,161.14 |
| Sub-total of cash outflow from business activities | 689,618,714.14 | 953,114,060.48 |
| Cash flow generated by business operation, net | -128,850,889.44 | -98,176,400.94 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 1,673,214.15 | 3,781,185.22 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 26,597.81 | 1,740.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 1,903,828,974.66 | 2,205,083,032.64 |
| Sub-total of cash inflow due to investment activities | 1,905,528,786.62 | 2,208,865,957.86 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 156,659,802.66 | 131,421,510.57 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 1,830,500,000.00 | 1,883,000,000.00 |
| Sub-total of cash outflow due to investment activities | 1,987,159,802.66 | 2,014,421,510.57 |
| Net cash flow generated by investment | -81,631,016.04 | 194,444,447.29 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Incl: Cash received as investment from minor shareholders | ||
| Cash received as loans | 275,474,786.49 | 51,181,623.57 |
| Cash received from bond placing | ||
| Other financing –related ash received | 6,809,000.00 | |
| Sub-total of cash inflow from financing activities | 275,474,786.49 | 57,990,623.57 |
| Cash to repay debts | 209,562,972.59 | 66,068,073.78 |
| Cash paid as dividend, profit, or interests | 1,439,654.15 | |
| Incl: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | ||
| Sub-total of cash outflow due to financing activities | 211,002,626.74 | 66,068,073.78 |
| Net cash flow generated by financing | 64,472,159.75 | -8,077,450.21 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -494,599.74 | -668,409.25 |
| V.Net increase of cash and cash equivalents | -146,504,345.47 | 87,522,186.89 |
| Add: balance of cash and cash equivalents at the beginning of term | 1,161,240,139.33 | 930,114,436.57 |
| VI ..Balance of cash and cash equivalents at the end of term | 1,014,735,793.86 | 1,017,636,623.46 |
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 34,341,479.70 | 32,697,766.87 |
| Tax returned | ||
| Other cash received from business | 6,186,752.60 | 12,894,925.40 |
| operation | ||
| Sub-total of cash inflow | 40,528,232.30 | 45,592,692.27 |
| Cash paid for purchasing of merchandise and services | 2,734,504.18 | 1,748,604.45 |
| Cash paid to staffs or paid for staffs | 10,002,845.66 | 8,290,247.88 |
| Taxes paid | 7,067,139.21 | 8,145,004.75 |
| Other cash paid for business activities | 12,230,536.71 | 8,891,199.29 |
| Sub-total of cash outflow from business activities | 32,035,025.76 | 27,075,056.37 |
| Cash flow generated by business operation, net | 8,493,206.54 | 18,517,635.90 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 1,673,214.15 | 3,781,185.22 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 24,597.81 | 1,510.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 763,589.50 | 80,000,000.00 |
| Sub-total of cash inflow due to investment activities | 2,461,401.46 | 83,782,695.22 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 1,545,005.70 | 1,371,469.00 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 40,000,000.00 | 160,000,000.00 |
| Sub-total of cash outflow due to investment activities | 41,545,005.70 | 161,371,469.00 |
| Net cash flow generated by investment | -39,083,604.24 | -77,588,773.78 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans |
| Cash received from bond placing | ||
| Other financing –related ash received | ||
| Sub-total of cash inflow from financing activities | ||
| Cash to repay debts | ||
| Cash paid as dividend, profit, or interests | ||
| Other cash paid for financing activities | ||
| Sub-total of cash outflow due to financing activities | ||
| Net cash flow generated by financing | ||
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -30,590,397.70 | -59,071,137.88 |
| Add: balance of cash and cash equivalents at the beginning of term | 413,700,327.95 | 440,685,610.11 |
| VI ..Balance of cash and cash equivalents at the end of term | 383,109,930.25 | 381,614,472.23 |
| Items | Amount in this period | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Undistributed profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 511,274,149.00 | 1,866,001,475.17 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | -32,266,087.44 | 1,125,544,525.79 | 3,523,019,129.58 | |||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of | |||||||||||||
| previous errors | |||||||||||||
| Merger of entities under common control | |||||||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 511,274,149.00 | 1,866,001,475.17 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | -32,266,087.44 | 1,125,544,525.79 | 3,523,019,129.58 | |||||
| III.Changed in the current year | 3,451,194.00 | -389,767.67 | 9,646,976.15 | -4,263,001.02 | 8,445,401.46 | ||||||||
| （1）Total comprehensive income | -389,767.67 | 9,646,976.15 | -4,263,001.02 | 4,994,207.46 | |||||||||
| （II）Investment or decreasing of capital by owners | 3,451,194.00 | 3,451,194.00 | |||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | 3,451,194.00 | 3,451,194.00 | |||||||||||
| 4．Other | |||||||||||||
| （III）Profit allotment | |||||||||||||
| 1.Providing of surplus reserves | |||||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||
| 4．Other |
| (IV) Internal transferring of owners’ equity | |||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||
| 4. Other | |||||||||||||
| (V). Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VI）Other | |||||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,869,452,669.17 | 27,230,679.00 | 1,828,936.20 | 77,477,042.19 | -22,619,111.29 | 1,121,281,524.77 | 3,531,464,531.04 |
| Items | Amount in last year | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Undistributed profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 506,521,849.00 | 1,837,205,251.95 | 3,392,222.07 | 73,710,682.05 | -81,275,828.76 | 1,100,564,805.80 | 3,440,118,982.11 | ||||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under common control | |||||||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 506,521,849.00 | 1,837,205,251.95 | 3,392,222.07 | 73,710,682.05 | -81,275,828.76 | 1,100,564,805.80 | 3,440,118,982.11 | ||||||
| III.Changed in the current year | 4,752,300.00 | 28,796,223.22 | 27,230,679.00 | -1,173,518.20 | 3,766,360.14 | 49,009,741.32 | 24,979,719.99 | 82,900,147.47 | |||||
| （1）Total comprehensive income | -1,173,518.20 | 52,776,101.46 | 20,885,576.41 | 72,488,159.67 | |||||||||
| （II）Investment or decreasing of capital by owners | 4,752,300.00 | 22,762,870.54 | 27,230,679.00 | 284,491.54 | |||||||||
| 1．Ordinary Shares invested by shareholders | 4,752,300.00 | 22,478,379.00 | 27,230,679.00 | ||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Allotment to the owners (or shareholders) | 284,491.54 | 284,491.54 | |||||||||||
| 4．Other | |||||||||||||
| （III）Profit allotment | 3,766,360.14 | -3,766,360.14 | |||||||||||
| 1.Providing of surplus reserves | 3,766,360.14 | -3,766,360.14 | |||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) |
| 4．Other | |||||||||||||
| (IV) Internal transferring of owners’ equity | |||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||
| 4. Other | |||||||||||||
| (V) Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VI）Other | 6,033,352.68 | 4,094,143.58 | 10,127,496.26 | ||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,866,001,475.17 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | -32,266,087.44 | 1,125,544,525.79 | 3,523,019,129.58 |
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Undistributed profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 511,274,149.00 | 1,599,381,854.96 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | 460,916,603.36 | 2,624,037,674.38 | ||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 511,274,149.00 | 1,599,381,854.96 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | 460,916,603.36 | 2,624,037,674.38 | ||||
| III.Changed in the current year | 4,277,070.00 | -389,767.67 | 15,094,165.00 | 18,981,467.33 | |||||||
| （I）Total comprehensive income | -389,767.67 | 15,094,165.00 | 14,704,397.33 | ||||||||
| (II) Investment or decreasing of capital by owners | 4,277,070.00 | 4,277,070.00 | |||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | 4,277,070.00 | 4,277,070.00 | |||||||||
| 4．Other | |||||||||||
| （III）Profit allotment | |||||||||||
| 1.Providing of surplus reserves | |||||||||||
| 2．Allotment to the owners (or shareholders) | |||||||||||
| 3．Other | |||||||||||
| (IV)Internal transferring of owners’ equity |
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||
| 4. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,603,658,924.96 | 27,230,679.00 | 1,828,936.20 | 77,477,042.19 | 476,010,768.36 | 2,643,019,141.71 |
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Undistributed profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 506,521,849.00 | 1,576,547,075.96 | 3,392,222.07 | 73,710,682.05 | 427,019,362.11 | 2,587,191,191.19 | |||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the | 506,521 | 1,576,54 | 3,392,22 | 73,710,6 | 427,01 | 2,587,19 | |||||
| beginning of current year | ,849.00 | 7,075.96 | 2.07 | 82.05 | 9,362.11 | 1,191.19 | |||||
| III.Changed in the current year | 4,752,300.00 | 22,834,779.00 | 27,230,679.00 | -1,173,518.20 | 3,766,360.14 | 33,897,241.25 | 36,846,483.19 | ||||
| （I）Total comprehensive income | -1,173,518.20 | 37,663,601.39 | 36,490,083.19 | ||||||||
| (II) Investment or decreasing of capital by owners | 4,752,300.00 | 22,834,779.00 | 27,230,679.00 | 356,400.00 | |||||||
| 1．Ordinary Shares invested by shareholders | 4,752,300.00 | 22,478,379.00 | 27,230,679.00 | ||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | 356,400.00 | 356,400.00 | |||||||||
| 4．Other | |||||||||||
| （III）Profit allotment | 3,766,360.14 | -3,766,360.14 | |||||||||
| 1.Providing of surplus reserves | 3,766,360.14 | -3,766,360.14 | |||||||||
| 2．Allotment to the owners (or shareholders) | |||||||||||
| 3．Other | |||||||||||
| (IV)Internal transferring of owners’ equity | |||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||
| 2. Capitalizing of surplus reserves |
| (or to capital shares) | |||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||
| 4. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,599,381,854.96 | 27,230,679.00 | 2,218,703.87 | 77,477,042.19 | 460,916,603.36 | 2,624,037,674.38 |
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
This company’s financial statements is based on going-concern assumption and worked out
according to actual transactions and matters, Accounting Standard for Business Enterprises--BasicStandard(issued by No.33 Decree of the Ministry of Finance and revised by No.76 Decree of theMinistry of Finance) issued by the Ministry of Finance, 42 special accounting standards enacted andrevised on and after Feb 15, 2006, guideline for application of accounting standard for businessenterprises, ASBE interpretations and other relevant regulations(hereinafter collectively referred to as
“Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules for Information
Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports(revised in 2014) issued by China Securities Regulatory Commission.
(2)ContinuationThere will be no such events or situations in the 12 months from the end of the reporting period that
will cause material doubts as to the continuation capability of the Company.V. Important accounting policies and estimationsSpecific accounting policies and accounting estimates tips:
The following important accounting policies and accounting estimates of the Company areformulated in accordance with the Accounting Standards for Business Enterprises. Businesses notmentioned are implemented in accordance with the relevant accounting policies in the AccountingStandards for Business Enterprises.1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporateaccounting standards. They truly and completely reflect the financial situations, operating results,equity changes and cash flow, and other relevant information of the company.
2.Fiscal YearThe Company adopts the Gregorian calendar year commencing on January 1 and ending onDecember 31 as the fiscal year.
3. Operating cycleNormalbusiness cycle is realized by the Companyin cash or cash
equivalentsfromthepurchaseofassetsfor mpocessing until. Less than 1 year is for the normaloperating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilitiesrepaid at maturity within one year as of the balance sheet date shall be classified into the currentassets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on thecombination date, obtains control of another enterprise participating in the combination is theabsorbing party, while that other enterprise participating in the combination is a party being absorbed.Combination date is the date on which the absorbing party effectively obtains control of the partybeing absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by theenterprise being combined at the combination date. The difference between the carrying amount ofthe net assets obtained and the carrying amount of consideration paid for the combination (or the totalface value of shares issued) is adjusted to the capital premium in the capital reserve. If the balance ofthe capital premium is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable tothe combination shall be recognized as an expense through profit or loss for the current period whenincurred.Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmedbetween the ultimate control date and the combining date for the combining party and the combinedparty on the acquirement date, and shall respectively offset the initial retained incomes or the profitsand losses of the current period during the comparative statement.
(2) Business combination involving entities not under common controlA business combination involving enterprises not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties bothbefore and after the business combination.For a business combination not involving enterprises undercommon control, the party that, on the acquisition date, obtains control of another enterpriseparticipating in the combination is the acquirer, while that other enterprise participating in thecombination is the acquiree. Acquisition date is the date on which the acquirer effectively obtainscontrol of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by theacquiree during the merger on the acquisition date, is recognized as the business reputation. While themerger cost is less than the fair value shares of identifiable net assets obtained by the acquiree duringthe merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilitiesand the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall berecorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months afteracquisition, additional information can prove the existence of related information at acquisition dateand the expected economic benefits on the acquisition date arose from deductible temporarydifference by the acquiree can be achieved, relevant income tax assets can be recognized, andgoodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of thecurrent period.
For a business combination not involving enterprise under common control, which achieved in
stages that involves multiple exchange transactions, according to “The notice of the Ministry ofFinance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) andArticle51 of “Accounting Standards for Business Enterprises No.33 - Consolidated FinancialStatements” on the “package deal” criterion, to judge the multiple exchange transations whether theyare the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs ofthis section and “long-term investment” accounting treatment, if it does not belong to the “packagedeal” to distinguish the individual financial statements and the consolidated financial statements
related to the accounting treatment:
In the individual financial statements, the total value of the book valueoftheacquiree's equityinvestment before the acquisition date and the cost of new investment at the acquisition date, as theinitial cost of the investment, the acquiree's equity investment before the acquisition date involved inother comprehensive income, in the disposal of the investment will be in other comprehensiveincome associated with the use of infrastructure and the acquiree directly related to the disposal ofassets or liabilities of the same accounting treatment (that is, except in accordance with the equitymethod of accounting in the defined benefit plan acquiree is remeasured net changes in net assets orliabilities other than in the corresponding share of the lead, and the rest into the current investmentincome).In the combination financial statements, the equity interest in the acquiree previously held before theacquisition date re-assessed at the fair value at the acquisition date, with any difference between itsfair value and its carrying amount is recorded as investment income.The previously-held equityinterest in the acquiree involved in other comprehensive income and other comprehensive incomeassociated with the purchase of the foundation should be used party directly related to the disposal ofassets or liabilities of the same accounting treatment (that is, except in accordance with the equitymethod of accounting in the acquiree is remeasured defined benefit plans other than changes in netliabilities or net assets due to a corresponding share of the rest of the acquisition date into currentinvestment income).
6.Preparation of the consolidated financial statements
(1) The scope of consolidationThe scope of consolidation for the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as toobtain benefits from its operating activities. The relevant events refer to the activities that have
significant influence on the return to the invested party. In accordance with the specific conditions,the relevant events of the invested party should conclude the sale and purchase of goods and services,the management of the financial assets, the purchase and disposal of the assets, the research anddevelopment activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is anenterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevantelements involved in the control of the change, the company will be re-evaluated.
(2) Preparation of the consolidated financial statements.The Company based on its own and its subsidiaries financial statements, in accordance with other
relevant information, to prepare the consolidated financial statements.For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in theconsolidated income statement and consolidated statement of cash flows, as appropriated; noadjustment is made to the opening balance and comparative figures in the consolidated financialstatements. Where a subsidiary and a party being absorbed in a merger by absorption was acquiredduring the reporting period, through a business combination involving enterprises under commoncontrol, the financial statements of the subsidiary are included in the consolidated financialstatements. The results of operations and cash flow are included in the consolidated balance sheet andthe consolidated income statement, respectively, based on their carrying amounts, from the date thatcommon control was established, and the opening balances and the comparative figures of theconsolidated financial statements are restated.When the accounting period or accounting policies of a subsidiary are different from those of theCompany, the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Where a subsidiary was
acquired during the reporting period through a business combination not under common control, thefinancial statements was reconciliated on the basis of the fair value of identifiable net assets at thedate of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Grouptransactions, are eliminated in preparing the consolidated financial statements.Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/ owners’ equity and net
profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presentedseparately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equityinvestment or other reasons, the remaining equity investment is re-measured at its fair value at the
date when control is lost. The difference between 1) the total amount of consideration received fromthe transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current periodwhen control is lost. Other comprehensive income related to the former subsidiary's equityinvestment, using the foundation and the acquiree directly related to the disposal of the same assets orliabilities are accounted when the control is lost (ie, in addition to the former subsidiary is remeasuredat the net defined benefit plan or changes in net assets and liabilities resulting from, the rest aretransferred to the current investment income). The retained interest is subsequently measured
according to the rules stipulated in the - “Chinese Accounting Standards for Business EnterprisesNo.2 - Long-term equity investment” or “Chinese Accounting Standards for Business EnterprisesNo.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equityinvestment until the loss of control, need to distinguish between equity until the disposal of asubsidiary's loss of control over whether the transaction is package deal. Terms of the transactiondisposition of equity investment in a subsidiary, subject to the following conditions and the economicimpact of one or more of cases, usually indicates that several transactions should be accounted for as
a package deal:①these transactions are considered。simultaneously, or in the case of mutual influencemade, ②these transactions as a whole in order to achieve a complete business results; ③theoccurrence of a transaction depends on occurs at least one other transaction; ④a transaction look
alone is not economical, but when considered together with other transaction is economical.If they does not belong to the package deal, each of them separately, as the case of a transaction in
accordance with “without losing control over the disposal of a subsidiary part of a long-term equityinvestments“principles applicable accounting treatment. Until the disposal of the equity investment
loss of control of a subsidiary of the transactions belonging to the package deal, the transaction willbe used as a disposal of a subsidiary and the loss of control of the transaction. However, before losingcontrol of the price of each disposal entitled to share in the net assets of the subsidiary 's investmentcorresponding to the difference between the disposal, recognized in the consolidated financialstatements as other comprehensive income, loss of control over the transferred together with the lossof control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1) Joint arrangement
A joint arrangement is an arrangement of which two or more partieshave joint control，depending of
the rights and obligation of the Company in the joint arrangement. A joint operation is a jointarrangement whereby the Company has rights to the assets, andobligations for the liabilities, relatingto the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the netassets of thearrangement.(2)Co-operation accounting treatmentWhen the joint venture company for joint operations, confirm the following items and share common business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;（3）Confirm the income from the sales revenue of co-operate business output（4）Confirm the income from the sales of the co-operate business output based on shareholdings;（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equity investments .
8.Recognition Standard of Cash & Cash EquivalentsCash and cash equivalents of the Company include cash on hand, ready usable deposits and
investments having short holding term (normally will be due within three months from the day ofpurchase), with strong liquidity and easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMBamount when the foreign currency transaction is initially recognized. On the balance sheet date, themonetary items of foreign currency are translated as per the shot exchange rate on the balance sheetdate, the foreign exchange conversion gap due to the exchange rate, except for the balance ofexchange conversion arising from special foreign currency borrowings capitals and interests for thepurchase and construction of qualified capitalization assets, shall be recorded into the profits andlosses of the current period. The non-monetary items of foreign currency measured at the historicalcost shall still be translated at the spot exchange rate on the transaction date, of which the RMBamount shall not be changed. The non-monetary items of foreign currency measured at the fairvalue shall be translated at the spot exchange rate on the fair value recognized date, the gap shall berecorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate on thetransaction date is adopted as the translation exchange rate, with the exception of “undistributedprofits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financialstatement of foreign currency converted above shall be listed in other comprehensive incomes under
the owner’s equity in the consolidated balance sheet.
10.Financial toolsOne financial asset or financial liability shall be recognized when the company becomes the party in
the financial instrument contract. The financial assets and the financial liabilities are measured at thefair value in the initial recognition. For the financial assets and liabilities that measured at the fair
values and the variation included in the current profits and losses, the relative transaction expensesshall be directly recorded into the profits and losses. For the financial assets and liabilities of othercategories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. For a financial instrument which has an
active market, the Company uses quoted price in the active market to establish its fair value. Thequoted price in the active market refers to the price that can be regularly obtained from exchangemarket, agencies, industry associations, pricing authorities; it represents the fair market trading pricein the actual transaction. For a financial instrument which does not have an active market, theCompany establishes fair value by using a valuation technique. Valuation techniques include using
recent arm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysisand option pricing models.
2. Classification, recognition and measurement of financial assetsAll regular way purchases or sales of financial assets are recognized and derecognized on a trade date
basis. On initial recognition, the Company’s financial assets are classified into including financial
assets at fair value though profit or loss, held-to maturity investments, loans and receivables andavailable-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit orloss.Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectivelymanaged, and there is objective evidence indicating that the enterprise recently manages this portfoliofor the purpose of short-term profits;C. the financial asset is a derivative, except for a derivative that is designated and effective hedginginstrument, or a financial guarantee contract, or a derivative that is linked to and must be settled bydelivery of an unquoted equity instrument (without a quoted price from an active market) whose fairvalue cannot be reliably measured. For such kind of financial assets, fair values are adopted forsubsequent measurement.Financial asset is designated on initial recognition as at fair value through profit or loss only when itmeets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or
recognition of relevant gains or losses that would otherwise arise from measuring the financialinstruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis,
and is reported to the enterprise’s key management personnels. Formal documentation regarding risk
management or investment strategy has prepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Anygains or losses arising from changes in the fair value and any dividends or interest income earned onthe financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable paymentsand fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kindof financial assets are subsequently measured at amortized cost using the effective interest method.Gains or losses arising from derecognition, impairment or amortization are recognized in profit orloss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through theexpected life of the financial asset or financial liability or, where appropriate, a shorter period to thenet carrying amount of the financial asset or financial liability. When calculating the effective interestrate, the Company shall estimate future cash flow considering all contractual terms of the financialasset or financial liability without considering future credit losses, and also consider all fees paid orreceived between the parties to the contract giving rise to the financial asset and financial liability thatare an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that arenot quoted in an active market. Financial assets classified as loans and receivables by the Companyinclude note receivables, account receivables, interest receivable dividends receivable and otherreceivables.
Loans and receivables are subsequently measured at amortized cost using the effective interestmethod. Gain or loss arising from derecognition, impairment or amortization is recognized in profitor loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated oninitial recognition as available for trade, and financial assets that are not classified as financial assetsat fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or lossesarising from changes in the fair value are recognized as other comprehensive income and included inthe capital reserve, except that impairment losses and exchange differences related to amortized costof monetary financial assets denominated in foreign currencies are recognized in profit or loss, untilthe financial assets are derecognized, at which time the gains or losses are released and recognized inprofit or loss. Interests obtained and dividends declared by the investee during the period in which thefinancial assets available-for-trade are held, are recognized in investment gains.3. Impairment of financial assetsThe Group assesses at the balance sheet date the carrying amount of every financial asset except forthe financial assets that measured by the fair value. If there is objective evidence indicating afinancial asset may be impaired, a provision is provided for the impairment.The company shall make an independent impairment test on the financial assets with significant
single amounts, and carry out an independent impairment test on the financial assets withinsignificant single amounts, or conduct an impairment-related test after they are included in acombination of financial assets with similar credit risk features so as to carry out. Where, uponindependent test, the financial asset (including those financial assets with significant single amountsand those with insignificant amounts) has not been impaired, it shall be included in a combination offinancial assets with similar risk features so as to conduct another impairment test. The financialassets which have suffered from an impairment loss in any single amount shall not be included in anycombination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by theestimated present value of future cash flow. The difference is recorded as impairment loss. If there isobjective evidence to indicate the recovery of value of financial assets after impairment, and it isrelated with subsequent event after recognition of loss, the impairment loss recorded originally can bereversed. The carrying value of financial assets after impairment loss reversed shall not exceed theamortized cost of the financial assets without provisions of impairment loss on the reserving date.
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarilyaccording to the integrated relevant factors, an available-for-trade financial asset is impaired. The"serious decline" refers to the cumulative fair value declines more than 30%; "non-temporarydecline" refers to the continuous decline in the fair value of time over 12 months.When an available-for-trade financial asset is impaired, the cumulative loss arising from declining infair value thathad been recognized in capital reserve shall be removed and recognized in profit or loss.The amount of the cumulative loss that is removed shall be difference between the acquisition costwith deduction of recoverable amount less amortized cost, current fair value and any impairment losson that financial asset previously recognized in profit or loss.If, after an impairment loss has been recognized, there is objective evidence that the value of thefinancial asset is recovered, and it is objectively related to an event occurring after the impairmentloss was recognized, the initial impairment loss can be reversed and the reserved impairment loss onavailable-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss onavailable-for-trade debt instrument is recorded in the current profit or loss.The equity instrument where there is no quoted price in an active market, and whose fair value cannotbe reliably measured, or impairment loss on a derivative asset that is linked to and must be settled bydelivery of such an unquoted equity instrument shall not be reversed.4. Recognition and measurement of financial assets transferThe Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under apass-through arrangement; or3) the enterprise has transferred its rights to receive cash flows from the asset and either hastransferred substantially all the risks and rewards of the asset, or has neither transferred norretained
substantially all the risks and rewards of the asset, but has transferred control of the asset.If the enterprise has neither retained all the risks and rewards from the financial asset nor control over
the asset, the asset is recognized according to the extent it exists as financial asset, and correspondentliability is recognized. The extent of existence refers the level of risk by the financial asset changesthe enterprise is facing.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carryingamount of the financial asset transferred; and the sum of the consideration received from the transferand any cumulative gain or loss that had been recognized in other comprehensive income, isrecognized in profit or loss.If a part of the transferred financial asset qualifies for derecognition, the carrying amount of thetransferred financial asset is allocated between the part that continues to be recognized and the partthat is derecognized, based on the relative fair value of those parts. The difference between (a) thecarrying amount allocated to the part derecognized; and (b) the sum of the consideration received forthe part derecognized and any cumulative gain or loss allocated to the part derecognized which hasbeen previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almostall of the risks and rewards of ownership of the financial assets have been transferred if. Hastransferred the ownership of the financial assets of almost all the risks and rewards to the transferee,the derecognition of the financial asset; retains ownership of the financial assets of almost all of therisks and rewards of financial assets that are not derecognised; neither transfers nor retainsownership of the financial assets of almost all of the risks and rewards, then continue to determinewhether the enterprise retains control of the assets and the accounting treatment in accordance withthe principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities. For financial liabilities at fair value throughprofit or loss, relevant transaction costs are immediately recognized in profit or loss for the currentperiod, and transaction costs relating to other financial liabilities are included in the initial recognitionamounts.(1)Financial liabilities measured by the fair value and the changes recorded in profit or lossThe classification by which financial liabilities held-for-trade and financial liabilities designed at theinitial recognition to be measured by the fair value follows the same criteria as the classification bywhich financial assets held-for-trade and financial assets designed at the initial recognition to bemeasured by the fair value and their changes are recorded in the current profit or loss.For thefinancial liabilities measured by the fair value and changes recorded in the profit or loss, fair valuesare adopted for subsequent measurement. All the gains or losses on the change of fair value and theexpenses on dividends or interests related to these financial liabilities are recognized in profit or lossfor the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price
in an active market and their fair value cannot be measured reliably, is subsequently measured by costOther financial liabilities are subsequently measured at amortized cost using the effective interestmethod. Gains or losses arising from derecognition or amortization is recognized in profit or loss forthe current period.
6. Derecognition of financial liabilitiesThe Group derecognizes a financial liability (or part of it) when the underlying present obligation(or part of it) is discharged or cancelled or has expired. An agreement between the Company (anexisting borrower) and existing lender to replace original financial liability with a new financialliability with substantially different terms is accounted for as an extinguishment of the originalfinancial liability and the recognition of a new liability.When the Company derecognizes a financial liability or a part of it, it recognizes the differencebetween the carrying amount of the financial liability (or part of the financial liability) derecognizedthe consideration paid (including any non-cash assets transferred or new financial liabilities assumed)in profit or loss.7. Offsetting financial assets and financial liabilitiesWhen the Company has a legal right that is currently enforceable to set off the recognizedfinancial assets and financial liabilities, and intends either to settle on a net basis, or to realize thefinancial asset and settle the financial liability simultaneously, a financial asset and a financialliability shall be offset and the net amount is presented in the balance sheet. Except for the abovecircumstances, financial assets and financial liabilities shall be presented separately in the balancesheet and shall not be offset.8. Equity instrumentsAn equity instrument is any contract that evidences a residual interest in the assets of the Companyafter deducting all of its liabilities. The consideration received from issuing equity instruments, net of
transaction costs, are added to shareholders’ equity. All types of distribution (excluding stockdividends) made by the Company to holders of equity instruments are deducted from shareholders’
equity. The Group does not recognize any changes in the fair value of equity instruments.
11.Accounts Receivable1.Accounts receivable with material specific amount and specific provisioned bad debt preparation.
| Judgment criteria or amount standard of material specific amount or amount criterial： | The Client Identifies single amount of accounts receivable that is not less than RMB 1 million as account receivable that are individually significant in amount. The Client Identifies single amount of accounts receivable that is not less than RMB 0.5 million as account receivable that are individually significant in amount. |
| Provision method with material specific amount and provision of specific bad debt preparation： | Making an independent impairment test. If any objective evidence shows that it has been impaired, the impairment-related losses shall be recognized according to the gap between its present value of future cash flow less than its book value, and the several shall be determined to withdraw the bad debt provision. If there exists no the impairment after the impairment test, they shall be included in a combination of the receivables with similar risk features so as to withdraw the bad debt provision. |
| Name | Withdrawing Method |
| Aging Group | Aging Analysis Method |
| Aging | Rate for receivables(%) | Rate for other receivables(%) |
| Within 1 year（Included 1 year） | 5.00% | 5.00% |
| 1－2 years | 10.00% | 10.00% |
| 2－3 years | 30.00% | 30.00% |
| Over 3 years | 50.00% | 50.00% |
| 3－4 years | 50.00% | 50.00% |
| 4－5 years | 50.00% | 50.00% |
| Over 5 years | 50.00% | 50.00% |
| Reasons of Withdrawing Individual Bad Debt Provision | There is any objective evidence shows that it has been impaired. |
| Withdrawing Method of Bad Debt Provision | The impairment-related losses shall be recognized according to the gap between its present value of future cash flow less than its book value. |
12. InventoriesWhether the company needs to comply with the disclosure requirements of the particular industry
No1.Investories classInventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of productionor the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price ReservesThe inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus thenet realizable value at the balance sheet date. The net realizable value refers to the amounts that theestimated sale price of inventory minus the estimated costs ready to happen till the completion of works,the estimated selling expenses and the relevant expenses of taxation. The company shall recognize thenet realizable value of inventory based on the acquired unambiguous evidence and in view of thepurpose to hold the inventory, the influence of matters after the balance sheet date and other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts ofthe estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses oftaxation during the process of normal production and operation. The net realizable value of inventorythat required to conduct processing shall be recognized according to the amounts of the estimated saleprice of the finished products minus the estimated costs ready to happen till the completion of works,the estimated selling expenses and the relevant expenses of taxation. On the balance sheet date, the netrealizable value shall be respectively defined for the partial agreed with the contract price and otherswithout the contract price in the same inventory, and the amounts of the inventory falling price reserveswithdrawn or returned shall be respectively recognized in comparison with their corresponding costs.
4. Inventory SystemAdopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable itemsLow cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
If the company recovers its book value mainly by sale of non-current asset (including exchange ofnon-monetary assets of commercial nature and similarly hereinafter) , instead of continued use of onenon-current asset or disposal group, which shall be included into available-for-sale. In specificstandards, the following conditions shall be met at the same time: One non-current asset or disposalgroup is available for sale at all times under current status depending on standard practice of sellingthem in similar transactions; the company has made a resolution on the sale plan and gained definitivepurchase commitments; the sale is expected to be finished within one year. In which, the disposal grouprefers to one set of assets that may be disposed as a whole along with other assets by sale or other waysin one deal and the liability transferred and related directly to such assets. If the asset group orcombination of asset group under account title disposal group amortizes the goodwill obtained frombusiness combination in accordance with No.8 of Accounting Standards for Business Enterprises--Asset Impairment, the disposal group shall include the goodwill amortized to it.
When the company’s initial measurement or re-measurement on the balance sheet date is
classified into available-for-sale non-current asset and disposal group, the book value shall be writtendown to the net amount of fair value minus selling expenses if it is higher than the net amount of fairvalue minus selling expenses, the write-down shall be confirmed as the assets impairment loss andincluded in current profits and losses, meanwhile the available-for-sale asset depreciation reserves shallbe accrued. For the disposal group, the asset impairment loss shall be written off pro rata the book valueof each non-current asset that is applicable to No.42 of Accounting Standards for Business Enterprises:
Available-for-sale Non-current Assets, Disposal Group and Discontinued Operations (hereinafter
referred to as “Available-for-sale rule for measurement”) after deducting the book value of goodwill in
it.
If the net amount of the fair value of available-for-sale disposal group minus selling expensesincreases after the balance sheet date, the previous write-downs shall be recovered and reversed in assetimpairment loss of non-current assets that are applicable to available-for-sale rule for measurementafter being included into available-for-sale account title, the amount of reversal shall be included incurrent profits and losses and increased pro rata its book value based on the proportion of the bookvalue of each non-current asset in the disposal group that is applicable to available-for-sale rule formeasurement except for goodwill; the book value of written-off goodwill and the asset impairment lossconfirmed before the non-current asset specified in available-for-sale rule for measurement is classifiedinto available-for-sale asset must not be reversed.
The available-for-sale non-current assets or the non-current assets in the disposal group shall notbe accrued depreciation or amortization, the interest of debit in available-for-sale disposal group andother expenses shall continue to be confirmed.
The non-current asset will no longer be included into available-for-sale category or will beremoved from the available-for-sale disposal group if it or the disposal group has no longer satisfied theconditions for classifying available-for-sale assets and measured as per the lower of: (1) book value ofthe non-current asset before being classified into available-for-sale asset adjusted on the basis of thedepreciation, amortization or impairment that shall be confirmed on the assumption that thenon-current asset is not included into available-for-sale account title; (2)Recoverable amount.
14.Long-term equity investmentsLong-term equity investments referred to in this section refer to the Company invested entity has
control, joint control or significant influence over the long-term equity investments. The Companyinvested does not have control, joint control or significant influence over the long-term equityinvestments as financial assets available for sale or at fair value and the changes included financialassets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulationsare common, related activities and the arrangement must be after sharing control participants agreedto the decision-making. Significant influence is the Company s financial and operating policies of theentity has the right to participate in decision-making, but can not control or with other parties jointcontrol over those policies.
1. Determination of Investment costThe cost of a long-term equity investment acquired through business combination under commoncontrol is measured at the acquirer's share of the combination date book value of the acquiree's netequity in the ultimate controller's consolidated financial statements. The difference between the costand book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted tocapital reserves, and to retained earnings if capital reserves is insufficient. If the consideration istransferred by way of issuing equity instruments, the face value of the equity instruments issued isrecognised in share capital and the difference between the cost of the face value of the equityinstruments issued is adjusted to capital reserves, and to retained earnings if capital reserves isinsufficient.The cost of a long-term equity investment acquired through business combination notunder common control is the fair value of the assets transferred, liabilities incurred or assumed andequity instruments issued. (For the equity of the combined party under common control obtainedstep-by-step through multiple transactions and the business combination under common controlultimately formed, the company should respectively dispose all the transactions if belong to thepackage deal. For the package deal, all the transactions will be conducted the accounting treatment asthe deal with acquisition of control. For the non-package deal, the shares of the book value of the
stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements of
the ultimate control party shall be as the initial investment cost of the long-term equity investment,and the capital reserves shall be adjusted for the difference between the initial investment cost oflong-term equity investment and the sum of the book value of long-term equity investment beforemerging and that of new consideration payment obtained on the merger date, or the retained earningsshall be adjusted if the capital reserves are insufficient to offset. As for the equity investment heldbefore the merger date, the accounting treatment will not be conducted temporarily for othercomprehensive income accounted by equity method or confirmed for the financial assets available forsale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditureof audit, legal services, valuation and consultancy and other administrative expenses, are recognisedin profit or loss for the period during which the acquisition occurs. For the merger of enterprises notunder the same control through gaining the shares of the combined enterprise by multiple steps ofdeals, it shall deal with it in the following two ways depending on that if it belongs to "a packagedeal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control
power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally heldby this enterprise accounted for by weighted equity method, the relevant other comprehensive incomeshall not be accounted for temporarily.If the equity investment held originally can be classified as thefinancial assets for sale, the difference between the fair value and the book value, and the variation inthe accumulative fair value of other comprehensive returns recorded originally will be transferred intothe current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditureof audit, legal services, valuation and consultancy and other administrative expenses, are recognisedin profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost oninitial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cashpaid, the fair value of equity instrument issued, the contract price, the fair value or book value of theassets given away in the case of non-monetary asset exchange, or the fair value of the relevantlong-term equity investments. The cost of acquisition of a long-term equity investment acquired notthrough business combination also includes all directly associated expenses, applicable taxes and fees,and other necessary expenses. When the significant impact or the joint control but non-control on theinvested party can be implemented due to the additional investment, the long-term equity investmentcost is the sum of the fair value of the equity investment originally held and the new investment costs
based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition andMeasurement of Financial Instruments”.
2. Subsequent MeasurementTo be invested joint control ( except constitute common operator ) or long-term equity investments
significant influence are accounted for using the equity method. In addition, the Company's financialstatements using the cost method of accounting for long-term equity can exercise control over theinvestee.(1)Cost method of accounting for long-term equity investmentsUnder the cost method, a long-term equity investment is measured at initial investment cost. Exceptfor cash dividends or profits declared but not yet paid that are included in the price or considerationactually paid upon acquisition of the long-term equity investment, investment income is recognized inthe period in accordance with the attributable share of cash dividends or profit distributions declaredby the investee.(2)Equity method of accounting for long-term equity investmentsWhen using the equity method, the initial investment cost of long-term equity investment exceeds the investor's net identifiable assets of the fair share of the investment value, do not adjust the initial investment cost of long-term equity investment; the initial investment cost is less than the investee unit share of identifiable net assets at fair value, the difference is recognized in profit or loss, while thelong-term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’sinterest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost. The carrying amount of an long-term equityinvestment measured using the equity method is adjusted by the Company's share of the investee's netprofit and other comprehensive income, which is recognised as investment income and othercomprehensive income respectively. The carrying amount of an long-term equity investmentmeasured using the equity method is reduced by profit distribution or cash dividends announced bythe investee. The carrying amount of an long-term equity investment measured using the equitymethod is also adjusted by the investee's equity movement other than net profit, other comprehensive
income and profit distribution, which is adjusted to capital reserves。The net profit of the investee is
adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statementsand hence the net profit and other comprehensive income of an investee which does not adoptaccounting policies or accounting period uniform with the Company is adjusted by the Company'saccounting policies and accounting period. The Company's share of unrealised profit or loss arisingfrom related party transactions between the Company and an associate or joint venture is deductedfrom investment income. Unrealised loss arising from related party transactions between theCompany and an associate or joint venture which is associated with asset impairment is not adjusted.Where assets transferred to an associate or joint venture which form part of the Company'sinvestment in the investee but which does not enable the Company obtain control over the investee,the cost of the additional investment acquired is measured at the fair value of assets transferred andthe difference between the cost of the additional investment and the book value of the assetstransferred is recognised in profit or loss. Where assets transferred to an associate or joint ventureform an operation, the difference between the consideration received and the book value of the assetstransferred in recognised in profit or loss. Where assets transferred from an associate or joint ventureform an operation, the transaction is accounted for in accordance with CAS 20 - BusinessCombination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of thelong-term equity investment and other net long-term investments in the investees. Where theCompany has obligation to share additional net loss of the investee, the estimatedshare of lossrecognised as accrued liabilities and investment loss. Where the Company has unrecognised share ofloss of the investee when the investee generates net profit, the Company's unrecognised share of lossis reduced by the Company's share of net profit and when the Company's unrecognised share or lossis eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
(3)Acquisition of minority interestThe difference between newly increased equity investment due to acquisition of minority interestsand portion of net asset cumulatively calculated from the acquisition date is adjusted as capitalreserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted againstreturned earnings.(4)Disposal of long-term equity investmentWhere the parent company disposes long-term investment in a subsidiary without a change in control,the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policiesin Note applies. For disposal of long-term equity investments in any situation other than the
fore-mentioned situation, the difference between the book value of the investment disposed and theconsideration received is recognised in profit or loss.The investee's equity movement other than net profit, other comprehensive income and profitdistribution is reocgnised in profit or loss proportionate to the disposal.Where a long-term equity investment is measured by the equity method both before and after partdisposal of the investment, cumulative other comprehensive income relevant to the investmentrecognised prior to the acquistion is treated in the same manner that the investee disposes the relevantassets or liabilities proportionate to the disposal. The investee's equity movement other than net profit,other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to thedisposal.Where a long-term equity investment is measured at cost both before and after part disposal of theinvestment, cumulative other comprehensive income relevant to the investment recognised, as a resultof accounting by equity method or recognition and measurement principles applicable to financialinstruments, prior to the Company's acquisition of control over the investee is treated in the samemanner that the investee disposes the relevant assets or liabilities and recognised in profit or lossproportionate to the disposal.The investee's equity movement other than net profit, othercomprehensive income and profit distribution, as a result of accounting by equity method, isreocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in theinvestee and the Company continues to have significant influence over the investee after the partialdisposal, the investment in measured by the equity method in the Company's separate financialstatements; where the Company's control over an investee is lost due to partial disposal of investmentin the investee and the Company ceases to have significant influence over the investee after thepartial disposal, the investment in measured in accordance with the recognition and measurementprinciples applicable to financial instruments in the Company's separate financialstatements and thedifference between the fair value and the book value of the remaining investment at the date of loss ofcontrol is recognised in profit or loss. Cumulative other comprehensive income relevant to theinvestment recognised, as a result of accounting by equity method or recognition and measurementprinciples applicable to financial instruments, prior to the Company's acquisition of control over theinvestee is treated in the same manner that the investee disposes the relevant assets or liabilities onthe date of loss of control. The investee's equity movement other than net profit, other comprehensiveincome and profit distribution, as a result of accounting by equity method, is reocgnised in profit orloss when control is lost. Where the remaining investment is measured by equity method, thefore-mentioned other comprehensive income and other equity movement are recognised in profit orloss proportionate to the disposal; Where the remaining investment is measured in accordance withthe recognition and measurement principles applicable to financial instruments, the fore-mentionedother comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partialdisposal of investment in the investee,the remaining investment in the investee is measured inaccordance with the recognition and measurement principles applicable to financial instruments, the
difference between the fair value and the book value of the remaining investment at the date of loss ofjoint control or significant influence is recognised in profit or loss.Cumulative other comprehensiveincome relevant to the investment recognised, as a result of accounting by equity method, prior to thepartial disposal is treated in the same manner that the investee disposes the relevant assets orliabilities on the date of loss of joint control or significant influence. The investee's equity movementother than net profit, other comprehensive income and profit distribution is reocgnised in profit orloss when joint control or significant influence is lost.Where the Company's control over an investee is lost through multiple disposals and the multipledisposals shall be viewed as one single transaction, the multiple disposals is accounted for one singletransaction which result in the Company's loss of control over the investee. Each difference betweenthe consideration received and the book value of the investment disposed is recognised in othercomprehensive income and reclassified in full to profit or loss at the time when control over theinvestee is lost.
15.Investment propertyThe measurement mode of investment propertyThe investment property of the company includes the leased land use rights, the leased buildings,
the land use rights held and prepared to transfer after appreciation.The company shall adopt the cost mode to measure the investment property.2. Depreciation or Amortization Method by Use of Cost ModeThe leased buildings of the investment property in the company shall be withdrawn the depreciationby the service life average method, and the depreciation policy is the same with that of the fixedassets. The land use rights held and prepared to transfer after appreciation in the investment propertyshall be amortized by the line method, and the specific accounting policy is same with that of theintangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,rendering labor service, renting or business management and their useful life is in excess of onefiscal year. The fixed assets can be recognized when the following requirements are all met: (1) theeconomic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixedassets can be measured reliably.The fixed assets of the company include the houses and buildings,the decoration of the fixed assets, the machinery equipment, the transportation equipment, theelectronic instrument and other devices.
2．The method for depreciation
| Category | The method for depreciation | Expected useful life（Year） | Estimated residual value | Depreciation |
| House and Building- Production | Straight-line method | 35 years | 4% | 2.74% |
| House and Building-Non- Production | Straight-line method | 40 years | 4% | 2.40% |
| Decoration of Fixed assets | Straight-line method | 10 years | 10% | |
| Machinery and equipment | Straight-line method | 10-14 years | 4% | 9.60%-6.86% |
| Transportation equipment | Straight-line method | 8 years | 4% | 12% |
| Electronic equipment | Straight-line method | 8 years | 4% | 12% |
| Other equipment | Straight-line method | 8 years | 4% | 12% |
17.Construction in progress1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measuredaccording to the actual cost occurred before the assets are built to achieve the expected usablecondition.2. The projects under construction shall be transferred into the fixed assets according to the actualproject costs when the expected usable condition achieved. For the expected usable condition achievedwhile the final accounts for completed projects not handled yet, the projects shall be transferred into thefixed assets as per the estimated value. After the final accounts for completed projects handled, theoriginal estimated value shall be adjusted as per the actual cost, but the original withdrawn depreciationshall not be adjusted again.
18.Borrowing costs
1. Recognition principles for capitalizing of loan expensesBorrowing expenses occurred to the Company that can be accounted as purchasing or
production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost ofrelated asset. Other borrowing expenses are recognized as expenses according to the occurredamount, and accounted into gain/loss of current term.2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.2. Loan costs have taken place;3. The construction or production activities to make assets to reach the intended use or sale of statehave begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted by activities other than those necessaryto prepare the asset for its intended use or sale, when the interruption is for a continuous period ofmore than 3 months. Borrowing costs incurred during these periods recognized as an expense for thecurrent period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.3. Computation Method for Capitalization Rate and Amount of Borrowing CostsWith regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for thespecial borrowings actually occurred during the current period (including the amortization of discountor premium recognized as per the effective interest method) minus the interest income acquired afterthe borrowings deposit in bank or the investment income obtained from the temporary investment. Forthe general borrowings for the purchase and construction of qualified assets, the capitalized interestamount of the general borrowings shall be computed and recognized according to the weighted averageof accumulative asset expense beyond the expense of the special borrowings, multiplying the
capitalization rate of general borrowings.19.Biological AssetsNot applicable20.Oil & Gas assetsNot applicable21.Intangible assets1. Valuation Method, Service Life and Impairment Test of Intangible Assets(1) The intangible assets include the land use rights, the professional technology and the software,
which are conducted the initial measurement as per the cost.(2) The service life of intangible assets is analyzed and judged when of the company acquires the
intangible assets. For the finite service life of the intangible assets, the years of service life or thequantity of service life formed and the number of similar measurement unit shall be estimated. If theterm of economic benefits of the intangible assets brought for the company is not able to be foreseen,the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets1) For the intangible assets with the finite service life, the company shall generally consider the
following factors to estimate the service life: ① the normal service life of products produced with theassets, and the acquired information of the service life of similar assets. ② the estimation of thecurrent stage conditions and the future development trends in the aspects of technology and craft. ③the demand of the products produced by the assets or the offered services in the market. ④ theexpectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the
relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term of theassets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of
other assets held by the company.2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and
Review Procedure of Its Service LifeThe company shall be unable to foresee the term of economic benefits brought by the assets for the
company, or the indefinite term of intangible assets recognized as the indefinite service life ofintangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights,but the indefinite service life of contract provision or legal provisions. ② unable to judge the term of
economic benefits brought by the intangible assets for the company after the integration ofinformation in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with
the indefinite service life, and the relevant department that uses the intangible assets, shall conductthe basic review by the method from up to down, in order to evaluate the judgment criteria of theindefinite service life if there is the change.
(4) Amortization Method of Intangible Assets ValueThe intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangibleassets during the service life, and the line method shall be adopted to amortize for the intangibleassets unable to reliably recognize the expected implementation mode. The specific service life is asfollows:
| Items | Amortization life time（Year） |
| Land use right | 50 years |
| Proprietary technology | 15 years |
| Software | 5 years |
the research results or other knowledge should be applied for the plan or design, in order to producethe new or improved stages with substantial materials, devices and products, which should berecognized as the development stage, and this stage has the features of pertinence and morepossibility to create the achievement.
22.Long-term Assets ImpairmentThe company shall make judgment of the long-term assets including the long-term equity
investment, the investment property measured by the cost mode, the fixed assets and the projectsunder construction if there is possible impairment on the balance sheet date. If there exists theevidence shows that the long-term assets have the impairment, the impairment test should beconducted, and the recoverable amount should be estimated. The impairment shall be confirmed ifthere exists after the comparison of the estimated recoverable amount of the assets and its bookvalue, and if the assets impairment provision shall be withdrawn to recognize the correspondingimpairment losses. The estimation of the recoverable amount of assets should be confirmedaccording to the higher one between the net amount of the fair value minus the disposal costs andthe present value of the cash flow of assets expected in the future.The company shall conduct the impairment test at least every year for the goodwill established bythe business combination and the intangible assets with the indefinite service life whether thereexists the impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future
accounting period.
23.Long-term amortizable expensesDeferred charges represent expenses incurred that should be borne and amortized over the current and subsequent
period (together of more than one year).The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be averagely
amortize within the benefit period or the specified period. If the long-term unamortized expense can’t make the
benefits for the future accounting period, the amortized value of the unamortized project shall all be transferredinto the current profits and losses.
24.Remuneration1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual short-termcompensation as the liability and record into the current profits and losses or the relevant assets cost as per thebeneficiary. Of which, the non-monetary welfare shall be measured as per the fair value.
2. Accounting Treatment Method of Severance Benefit PlansThe severance benefit plans can be divided into the defined contribution plan and the defined benefit plan
according to the risk and obligation borne.(1) The Defined Contribution PlanThe contribution deposits that paid to the individual subject for the services provided by the staffs on the balance
sheet date during the accounting period, shall be recognized as the liability, and recorded into the current profitsand losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit PlanThe defined benefit plan is the severance benefit plans with the exception of the defined contribution plans.1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and mutually
consistent actuarial assumptions to make evaluation of demographic variables and financial variables, measure anddefine the obligations arising from the benefit plan, and determine the period of the relevant obligations. Thecompany shall discount all the defined benefit plan obligations, including the obligation within twelve months afterthe end of the annual report during the expected services provision of employee. The discount rate adopted indiscounting shall be recognized according to the bonds matched with the defined benefit plan obligation term andthe currency at the balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present value of thedefined benefit plan obligations minus the fair value of the defined benefit plan assets are recognized as the netliability or the net assets of the defined benefit plan. If there exists the surplus of the defined benefit plan, the lowerone between the surplus of the define benefit plan and the upper limit of assets shall be used to measure the netassets of the defined benefit plan. The upper limit of assets refers to the present value of economic benefits obtainedfrom the refund of the defined benefit plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are recognized as the
service costs, the net interests on the net liabilities or the net assets of the defined benefit plan, and the changes
caused by the net liabilities and the net assets of the defined benefit plan that re-measured. Of which, the servicecosts and the net interests on the net liabilities or the net assets of the defined benefit plan shall be recorded into thecurrent profits and losses or the relevant assets costs, the changes caused by the net liabilities and the net assets ofthe defined benefit plan that re-measured shall be recorded into other comprehensive incomes, which should not beswitched back to the profits and losses during the subsequent accounting period, but the amount recognized fromother comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the early date and
recorded into the current profits and losses: (1) when the company can’t withdraw the demission welfare provided
due to the rundown suggestion or the termination of labor relations plans. (2) when the company recognizes thecosts or the expenses related to the reorganization of demission welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the termination of labor
relations plans at its side and when the costs relevant to the recombination of dismission welfare payment, shall berecognized as the liabilities arising from the compensation due to the termination of labor relations with staff andshall be recorded into the current profits and losses. Then company shall reasonably predict and recognize thepayroll payable arising from the dismission welfare. The dismission welfare, which is expected to finish thepayment within twelve months after the end of the annual report recognized, shall apply to the relevant provisionsof short-term compensation. The dismission welfare, which is expected to be unfinished for the payment withintwelve months after the end of the annual report recognized, shall apply to the relevant provisions of short-termcompensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee BenefitsIf other long-term employee benefits of employees provided by the company meet the conditions of the defined
contribution plan, the accounting treatment shall be made in accordance with the defined contribution plan.Except for these, other long-term benefits shall be made the accounting treatment according to the defined benefitplan, but the changes arising from the re-measurement of net liabilities or net assets of other long-term employeebenefits shall be recorded into the current profits and losses or the relevant assets costs.
25. Estimated Liabilities1. Recognition Criteria of Estimated LiabilitiesThe liabilities shall be recognized when external guarantee, pending litigation or arbitration, product quality
assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of the fixed assets andother pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.(2) The implementation of the obligation may cause the economic benefits out of the enterprise.(3) The amount of the obligation can be measured reliably.2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the expenditurerequired to settle the present obligation. There is the continuous scope for the required expenditure, and the bestestimate with the same possibilities resulted from various outcomes within the scope shall be recognized as perthe intermediate value. The best estimate should be recognize according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters involved in thesingle item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are matters involved inthe multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are compensatedby the third party or other parties, the compensation amount should be separately recognized as the assets whenthe receipt of the compensation amount is basically determined. Meanwhile, the determined compensation amountshall not exceed the book value of the estimated liabilities recognized.The company shall make review of the book value of estimated liabilities at the balance sheet date. If there isconclusive evidence that the book value cannot really reflect the current best estimate, the adjustment shall bemade for the book value in accordance with the current best estimate.26. Share payment1.Accounting Treatment Methods of Share Payment
Share payment is a transaction which is for obtaining the service provided by employees or other parties, wherethus the equity instrument is granted , or for bearing the liability confirmed basing on the equity instrument. Sharepayment is divided into the payment settled by equities and the payment settled by cash.(1)Shared Payment settled by Equities
The share payment settled by equities, which is used for exchanging the service provided by employees, willbe measured according to the fair value of the equity instrument granted to employees on date of grant. Theamount of such fair value, under the situation that the rights can only be exercised after the service is finished andthe set performance is achieved within the waiting period, and basing on the optimum estimation for the numberof equity instrument which exercise rights within the waiting period, will be measured according to straight-linemethod and counted into relevant costs and expenses. When the rights can be exercised immediately after beinggranted, the payment will be counted into relevant costs and expenses, and the capital reserve will be increasedcorrespondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum estimationsaccording to the newly-obtained subsequent information after the changes occurred in the number of employeeswho exercise rights so as to modify the predicted number of the equity instrument of exercising rights. Theinfluence from above-mentioned estimations will be counted into relevant costs and expenses at the current period,and the corresponding adjustment will be made for the capital reserve.
If the fair value of the other parties’ service can be reliably measured, the share-based payment settled by equities
which is used for exchanging the service of other parties will be measured according to that fair value on date ofacquisition. If not, but the fair value of the equity instrument can be reliably measured, the payment will becounted according to the fair value of the equity instrument on date of service acquisition, and it will be countedinto relevant costs and expenses, and the equity of the shareholders will be increased correspondingly.
(2) Share Payment settled by CashThe share payment settled by cash will be measured according to the fair value of the liability confirmed basingon the shares borne by the Company and other equity instruments. If the rights can be exercised immediately after
being granted, the payment will be counted into relevant costs or expenses and the liability will be increasedcorrespondingly. If the rights can only be exercised after the situation that service within the waiting period iscompleted and set performance is achieved, the service obtained at the current period,according to the fair valueamount of the liability borne by the Company, and basing on the optimum estimation for the condition ofexercising rights, will be counted into costs or expenses on each and every balance sheet date during the waitingperiod, and the liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value ofliability will be remeasured, of which changes occurred will be counted into the current period.
2.Relevant Accounting Treatment of Modification and Termination for Share-based Payment PlanWhen the Company modifies the share payment plan, if the fair value of the equity instrument granted isincreased after the modification, the increase in the service obtained will be correspondingly confirmed accordingto the increase in the fair value of equity instrument. The increase in the fair value of equity instrument means thebalance between the equity instrument before modification and the equity instrument after modification onmodification date. If decrease occurred in the total fair value of the equity instrument after the modification ormethods which are unbeneficial to employees are adopted in the modification, accounting treatment will stillcontinue to be made for the service obtained, and such changes will be regarded as changes that have neveroccurred unless the Company has canceled partial or all equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat the cancelledequity instrument as the accelerated exercise of power, and immediately include the balance that should berecognized in the remaining waiting period into the current profit and loss, and simultaneously confirm the capitalreserve. If the employee or other party can choose to satisfy the non-exercisable condition but not satisfied in thewaiting period, then the company will treat it as cancellation of the granted equity instrument.
3. Accounting treatment involving the share payment transaction between the Company and the shareholdersor the actual controller of the Company
Where involves the share payment transaction between the Company and the shareholders or the actualcontroller of the Company and one of the parties of the settlement company and the service-accepting company iswithin the company and the other is not within the company, then the company performs the accounting treatmentin the consolidated financial statements of the company according to the following provisions:
(1) If the settlement company settles in its own equity instrument, then it treats the equity paymenttransaction as the equity-settled equity payment; otherwise, it treats as the cash-settled equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized as along-term equity investment in the service-accepting company in accordance with the fair value of the equityinstrument or the fair value of the liability it is assumed to bear on the grant date, and the capital reserve (othercapital reserve) or liabilities shall be recognized at the same time.
(2) If the service-accepting company has no settlement obligation or confers its own equity tools on theemployees of the company, then such equity payment transaction shall be treated as equity-settled equity payment;if the service-accepting company has the settlement obligation and confers the employees of the company with notits own equity instrument, then such equity payment transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company, and theservice-accepting company and the settlement company are not the same company, then the confirmation andmeasurement of the equity payment transaction shall be carried out respectively in the financial report of theservice-accepting company and the settlement company, with the same analogy of the above-said principle.
27. Other financial instruments such as preferred stocks and perpetual bonds28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNo1. Recognition Principle of Revenue(1) The Goods for SaleThe revenue of the goods for sale shall be recognized when the following requirements are met simultaneously: thetransfer of main risks and rewards on ownership of the goods to the buyers, the continual management rights relatedto ownership no longer retained by the company and the effective control of the sold goods no longer implemented,the reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, and thereliable measurement of the relevant costs incurred or to be incurred.(2) The Service ProvisionIf the provided services transaction results can be reliably estimated at the balance sheet date (the reliablemeasurement of the revenue amount, the possible inflow of the relevant economic benefits, the reliable recognitionof the completion schedule of transaction, and the reliable measurement of the relevant costs incurred or to beincurred in the transaction), the company shall recognize the relevant service incomes according to the completionpercentage method and recognized the completion schedule of the provided service transaction according to theproportion of the costs occurred accounting for the total estimated costs. If the provided services transaction resultscannot be reliably estimated at the balance sheet date and the occurred service costs can be expected to havecompensation, the company shall recognize to provide the service revenue according to the occurred service costamount and transfer the service costs as per the same amount. If the occurred service costs cannot be expected tohave compensation, the occurred service costs shall be recorded into the current profits and losses and not berecognized as the service revenue.(3) The Abalienation of the Right to Use AssetsThe revenue of abalienation of the right to use assets shall be recognized when the abalienation of the right to useassets meets the requirements of the possible inflow of the relevant economic benefits and the reliablemeasurement of revenue amount. The interest income shall be calculated and determined according to time andactual interest rate of the monetary capital of the company used by others, and the royalty revenue shall bemeasured and determined in accordance with the charging time and method appointed in the relevant contract oragree.2. The Specific Recognition Method of RevenueThe company mainly sells the polaroid, textiles and other products. The revenue of the sale of products in domesticmarket shall be recognized after the following requirements are met: The company has agreed to deliver the goodsto the purchaser under the contract and the revenue amount of product sales has been determined, the payment forgoods has been withdrawn or the payment vouchers has been obtained and related economic benefits are likely toinflow, and the costs related to the products can be measured reliably. The revenue of the sale of products in foreignmarket shall be recognized after the following requirements are met: The company has made customs clearance anddeparture from port under the contract, the bill of landing has obtained and the revenue of the sale of products hasbeen recognized, the payment for goods has been withdrawn or the payment vouchers has been obtained and relatedeconomic benefits are likely to inflow, and the costs related to the products can be measured reliably.
29.Government subsidy1. Judgment Basis and Accounting Treatment Method of Government Grants related to AssetsThe government grants of long-term assets that obtained, used for construction or formed by other ways, shall be
recognized as the government subsidy related to the assets. The government grants related to assets are recognizedas the deferred income, equally distributed within the service life of the relevant assets, and recorded into thecurrent profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to IncomeThe government subsidy related to income that used for the compensation of the related expenses or losses insubsequent period, shall be recognized as the deferred income and recorded into the current profits and lossesduring the period of the confirmation of relevant expenses. The relevant expenses or losses occurred for thepurpose of compensation shall be directly recorded into the current profits and losses. Government grants relatedto the company's daily activities are included in other income; those unrelated to the daily activities of thecompany are included in non-operating income.
30.The Deferred Tax Assets / The deferred Tax Liabilities1. Temporary DifferenceThe temporary difference includes the difference of the book value of assets and liabilities and the tax basis, and
the difference of the book value and the tax basis that no confirmation of assets and liabilities but able to confirmthe tax basis as per the provisions of tax law. The temporary difference can be classified into the taxabletemporary difference and the deductible temporary difference.2. Recognition Basis of Deferred Tax AssetsFor the deductible temporary difference, the deductible loss and the tax payment offset, the company shallrecognize the deferred tax assets arising from the future taxable income that obtained to deduce the deductibletemporary difference, the deductible loss and the tax payment offset.The deferred tax assets with the following features and arising from the initial recognition of assets or liabilities inthe transaction shall not be recognized: (1) the transaction is not the business combination. (2) the transaction
doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary difference relatedto the investment of subsidiaries, cooperative enterprises and joint ventures if the following requirements aresimultaneously met: (1) the temporary difference is possible to be reversed in the foreseeable future. (2) thetaxable income used to offset the deductible temporary difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax LiabilitiesAll the taxable temporary differences shall be recognized as the deferred tax liabilities.But the company shall not recognize the taxable temporary differences arising from the following transactions asthe deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial recognition of assets or liabilitiesarising from the transactions with the following features: this transaction is not the business combination, and the
transaction doesn’t influence the accounting profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary difference relatedto the investment of subsidiaries, cooperative enterprises and joint ventures. Except that the following
requirements are simultaneously met: (1) the investment enterprise can control the reversal time of the temporarydifference. (2) the temporary difference is possible to not be reversed in the foreseeable future.4. Impairment of Deferred Tax AssetsThe company shall review the book value of the deferred tax assets at the balance sheet date. If it is not possible toobtain sufficient taxable income for the reduction of the benefit of the deferred tax assets in the future, the bookvalue of the deferred tax assets shall be deduced. Except that the deferred tax assets and the reduction amount are
recorded into the owner’s equity when the original recognition, others shall be recorded into the current income
tax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income ispossibly obtained.
5. Income Tax ExpenseThe income tax expense should include the current income tax and the deferred income tax.Other comprehensive income or the current income tax and the deferred income tax related to the transactions and
items directly recorded into the stockholders’ equity, shall be recorded into other comprehensive incomes or thestockholders’ equity, and the book value of goodwill shall be adjusted by the deferred income tax arising from the
business combination, but the rest of the current income tax and the deferred income tax expense or income shallbe recorded into the current profits and losses.
31.Lease1. Accounting Treatment Method of Operating LeaseWhen the company is as the tenant, the rental within the lease term shall be recorded into the relevant assets cost or
recognized as the current profits and losses as per the line method, and the initial direct expense occurred shall bedirectly recorded into the current profit and loss. The contingent rental shall be recorded into the current profit andloss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current profits andlosses as per the line method, and the initial direct expense occurred shall be directly recorded into the currentprofit and loss, except that the large amounts are capitalized and recorded into the profit and loss by stages. Thecontingent rental shall be recorded into the current profit and loss once the actual occurrence.
2. Accounting Treatment Method of Finance LeaseWhen the company is as the tenant, the company shall recognize the less one between the fair value of leasing assets
and the present value of minimum lease payment at the lease commencement date as the book value of rented assets,recognize the minimum lease payment as the book value of the long-term payables, and the undetermined fiancéexpense of the difference and the initial direct costs occurred shall be recorded into the leasing asset value. Duringeach lease period, the current financing charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease receivables and initialdirect expense at the lease commencement date as the book value of finance lease receivables, and record theunguaranteed residual value. Meanwhile, the company shall recognize the difference between the sums of minimumlease receivables, minimum lease receivables and unguaranteed minus the sum of the present value as the unrealizedfinancing income. During each lease period, the current financing charges shall be measured and recognized by the
effective interest method.32. Other important accounting policies and accounting estimates33.Change of main accounting policies and estimations(1)Change of main accounting policies
□ Applicable √Not applicable
（2）Change of main accounting estimations
□ Applicable √Not applicable
34.Other
VI.Taxes of the Company
1. Main taxes categories and tax rate
| Taxes | Tax references | Applicable tax rates |
| VAT | The taxable turnover | The tax rate has changed from 17% to 16% since May. |
| City construction tax | Turnover tax to be paid allowances | 7% |
| Business income tax | Turnover tax to be paid allowances | 25%、15% |
| Education surcharge | Turnover tax to be paid allowances | 3% |
| Local education surcharge | Turnover tax to be paid allowances | 2% |
| Name of taxpayer | Income tax rates |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | 15% |
ls and consumables for the purpose of self use and production that can not be produced domestically from January1, 2016 and December 31, 2020.
3.Other
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash at hand | 1,720.24 | 17,771.09 |
| Bank deposit | 1,016,522,661.15 | 1,163,010,967.65 |
| Other monetary funds | 2,019,381.97 | 2,019,370.09 |
| Total | 1,018,543,763.36 | 1,165,048,108.83 |
| Including : The total amount of deposit abroad | 8,926,677.22 | 9,044,548.79 |
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 1,668,992.95 | 44,207,119.00 |
| Total | 1,668,992.95 | 44,207,119.00 |
| Items | Amount derecognizing at period –end | Amount derecognizing at period-end |
| Bank acceptance | 29,995,613.18 | |
| Total | 29,995,613.18 |
| Category | Amount in year-end | Amount in year-begin | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accounts receivable of individual significance and subject to individual impairment assessment | 6,301,057.07 | 2.58% | 3,998,803.02 | 63.46% | 2,302,254.05 | 6,301,057.07 | 2.97% | 3,998,803.02 | 63.46% | 2,302,254.05 |
| Accounts receivable subject to impairment assessment by credit risk characteristics of a portfolio | 232,443,460.36 | 95.07% | 11,826,900.32 | 5.09% | 220,916,560.04 | 199,198,855.51 | 93.99% | 10,386,734.84 | 5.21% | 188,812,120.67 |
| Accounts receivable of individual insignificance but subject to individual impairment assessment | 5,748,803.57 | 2.35% | 4,060,100.59 | 70.63% | 1,388,702.98 | 6,448,803.57 | 3.04% | 5,060,100.59 | 78.47% | 1,388,702.98 |
| Total | 244,493,321.00 | 100.00% | 19,885,803.93 | 100.00% | 224,607,517.07 | 211,948,716.15 | 100.00% | 19,445,638.45 | 100.00% | 192,503,077.70 |
| Account receivable(Unit） | Amount in year-end | |||
| Account receivable | Bad debt provision | Proportion(%) | Reason for allowance | |
| Dongguan Fair LCD Co., | 1,696,548.96 | 1,696,548.96 | 100.00% | It has been included in |
| Ltd. | the list of national courts dishonest debtor, unlikely to recover. | |||
| Guangdong Ruili Baolai Technology Co., Ltd. | 1,348,965.36 | 674,482.68 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Dongguan Yaxing Semiconductor Co., Ltd. | 3,255,542.75 | 1,627,771.38 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Total | 6,301,057.07 | 3,998,803.02 | -- | -- |
| Aging | Balance in year-end | ||
| Account receivable | Bad debt provision | Proportion(%) | |
| Subitem Within 1 year | |||
| 231,907,311.27 | 11,595,365.56 | 5.00% | |
| Subtotal within 1 year | 231,907,311.27 | 11,595,365.56 | 5.00% |
| 1-2 years | 53,684.00 | 5,368.40 | 10.00% |
| 2-3 years | 75,330.97 | 22,599.29 | 30.00% |
| Over 3 years | 45,898.44 | 22,949.22 | 50.00% |
| 3-4 years | 128,940.73 | 64,470.37 | 50.00% |
| 4-5 years | 232,294.95 | 116,147.48 | 50.00% |
| Total | 232,443,460.36 | 11,826,900.32 | |
| Name | Nature | Balance in year-end | Aging | Proportion(%) | Bad debt provision |
| First | Goods | 73,332,680.33 | Within 1 year | 29.99% | 3,666,634.02 |
| Second | Goods | 44,718,000.00 | Within 1 year | 18.29% | 2,235,900.00 |
| Third | Goods | 32,985,000.00 | Within 1 year | 13.49% | 1,649,250.00 |
| Fourth | Goods | 10,344,908.57 | Within 1 year | 4.23% | 517,245.43 |
| Fifth | Goods | 8,047,326.72 | Within 1 year | 3.29% | 402,366.34 |
| Total | 169,427,915.62 | 69.30% | 8,471,395.78 |
| Aging | Balance in year-end | Balance in year-begin | ||
| Amount | Proportion（%） | Amount | Proportion（%） | |
| Within 1 year | 195,791,204.91 | 99.97% | 13,705,047.27 | 99.63% |
| 1-2 years | 21,988.56 | 0.01% | 11,944.78 | 0.09% |
| 2-3 years | 38,160.00 | 0.02% | 38,160.00 | 0.28% |
| Over 3 years | 195,851,353.47 | -- | 13,755,152.05 | -- |
| Total | ||||
| Name | Balance in year-end | Proportion |
| First | 131,977,638.68 | 67.39% |
| Second | 20,300,000.00 | 10.37% |
| Third | 20,000,000.00 | 10.21% |
| Fourth | 9,211,650.58 | 4.70% |
| Fifth | 6,616,600.00 | 3.38% |
| Total | 188,105,889.26 | 96.05% |
7.Interest receivable1.Category of interest receivable
In RMB
| Items | Amount in year-end | Amount in year-beginng |
| Fixed deposit interest | 15,203,853.00 | 12,676,572.40 |
| Trust income | 1,627,397.26 | |
| Structure deposit interest | 3,629,626.86 | 1,418,738.58 |
| Other financing product | 6,164.38 | |
| TotaL | 18,833,479.86 | 15,728,872.62 |
| Items | Balance in year-end | Balance in year-begin |
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other accounts receivable of individual significance and subject to individual impairment | 13,781,464.60 | 48.66% | 13,781,464.60 | 100.00% | 0.00 | 13,781,464.60 | 47.54% | 13,781,464.60 | 100.00% | 0.00 |
| assessment | ||||||||||
| Other accounts receivable subject to impairment assessment by credit risk characteristics of a portfolio | 13,927,423.06 | 49.18% | 1,509,143.36 | 10.84% | 12,418,279.70 | 14,596,383.53 | 50.35% | 1,670,399.08 | 11.44% | 12,925,984.45 |
| Other accounts receivable of individual insignificance but subject to individual impairment assessment | 611,820.77 | 2.16% | 611,820.77 | 100.00% | 0.00 | 611,820.77 | 2.11% | 611,820.77 | 100.00% | 0.00 |
| Total | 28,320,708.43 | 100.00% | 15,902,428.73 | 12,418,279.70 | 28,989,668.90 | 100.00% | 16,063,684.45 | 12,925,984.45 |
| Other receivable（Unit） | Amount in year-end | |||
| Other account receivable | Bad debt provision | Withdrawal proportion (%) | Reason for allowance | |
| Jiangxi Xuanli String Co., Ltd. | 11,389,044.60 | 11,389,044.60 | 100.00% | No executable property, unlikely to recover. |
| 1,800,000.00 | 1,800,000.00 | 100.00% | Estimated irrecoverable | |
| Shenzhen Tianlong Induatry& Trade Co., Ltd. | 592,420.00 | 592,420.00 | 100.00% | Has been conceled, unlikely to recover |
| Total | 13,781,464.60 | 13,781,464.60 | -- | -- |
| Aging | Amount in year-end | ||
| Other receivable | Bad debt provision | Withdrawal proportion | |
| Subitem within 1 year | |||
| Subtotal Within 1 year | 9,084,634.17 | 454,231.71 | 5.00% |
| 1-2 years | 3,032,560.75 | 303,256.08 | 10.00% |
| 2—3 years | 767,292.47 | 230,187.74 | 30.00% |
| Over 3 years | 1,042,935.67 | 521,467.84 | 50.00% |
| 3-4 years | 710,122.83 | 355,061.42 | 50.00% |
| 4-5 years | 160,403.68 | 80,201.84 | 50.00% |
| Over 5 years | 172,409.16 | 86,204.58 | 50.00% |
| Total | 13,927,423.06 | 1,509,143.36 |
| Category | Year-end balance | Year-beginning balance |
| Customs bond | 265,625.07 | 1,454,781.62 |
| Export rebate | 2,475,289.80 | 7,804,119.33 |
| Unit account | 14,914,848.23 | 15,211,367.96 |
| Deposit | 643,518.35 | 1,752,199.92 |
| Reserve fund and staff loans | 947,827.17 | 849,212.52 |
| Other | 9,073,599.81 | 1,917,987.55 |
| Total | 28,320,708.43 | 28,989,668.90 |
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| First | Unit account | 11,389,044.60 | Over 5 years | 40.21% | 11,389,044.60 |
| Second | Unit account | 1,800,000.00 | 1-2 years | 6.36% | 1,800,000.00 |
| Third | Export rebate | 1,515,881.87 | Within 1 year | 5.35% | 75,794.09 |
| Fourth | Deposit | 629,278.35 | Within 1 year | 2.22% | 31,463.92 |
| Fifth | Unit account | 592,420.00 | Over 5 years | 2.09% | 592,420.00 |
| Total | -- | 15,926,624.82 | -- | 13,888,722.61 |
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |
| Raw materials | 87,061,113.61 | 12,679,234.15 | 74,381,879.46 | 134,843,713.96 | 12,679,234.15 | 122,164,479.81 |
| Processing products | 49,571,566.76 | 49,571,566.76 | 3,234,902.35 | 3,234,902.35 | ||
| Stock goods | 240,737,319.36 | 35,398,716.90 | 205,338,602.46 | 189,554,586.67 | 39,338,792.67 | 150,215,794.00 |
| Total | 377,369,999.73 | 48,077,951.05 | 329,292,048.68 | 327,633,202.98 | 52,018,026.82 | 275,615,176.16 |
| Items | Year-beginning balance | Increased in current period | Decreased in current period | Year-end balance | ||
| Provision | Transferred back | Provision | Other | |||
| Raw materials | 12,679,234.15 | 12,679,234.15 | ||||
| Stock goods | 39,338,792.67 | 17,115,422.28 | 21,055,498.05 | 35,398,716.90 | ||
| Total | 52,018,026.82 | 17,115,422.28 | 21,055,498.05 | 48,077,951.05 | ||
| Items | Year-end balance | Year-beginning balance |
| Structural Deposit | 180,000,000.00 | 210,000,000.00 |
| Trust financing | 800,000,000.00 | 800,000,000.00 |
| Other financing product | 0.00 | 10,000,000.00 |
| After the deduction of input VAT | 140,702,098.15 | 128,689,874.10 |
| Total | 1,120,702,098.15 | 1,148,689,874.10 |
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Available-for-sale equity instruments | 109,934,880.27 | 44,579,303.00 | 65,355,577.27 | 110,615,036.04 | 44,579,303.00 | 66,035,733.04 |
| Measured by fair value | 7,314,138.86 | 7,314,138.86 | 7,994,294.63 | 7,994,294.63 | ||
| Measured by cost | 102,620,741.41 | 44,579,303.00 | 58,041,438.41 | 102,620,741.41 | 44,579,303.00 | 58,041,438.41 |
| Total | 109,934,880.27 | 44,579,303.00 | 65,355,577.27 | 110,615,036.04 | 44,579,303.00 | 66,035,733.04 |
| Type | Available-for-sale equity instruments | Available-for-sale Debt instruments | Total | |
| Cost of the equity instruments/amortized cost of the liabilities instruments | 8,940,598.31 | 8,940,598.31 | ||
| Fair value | 7,314,138.86 | 7,314,138.86 | ||
| Changed amount of the fair value accumulatively included in other comprehensive income | -1,626,459.45 | -1,626,459.45 |
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
| Investee | Book balance | Impairment provision | Shareholding proportion among the investees | Cash bonus of the reporting period | ||||||
| Period-begin | Increase | Decrease | Period -end | Period-begin | Increase | Decrease | Period -end | |||
| Shenzhen Jintian Industry（Group） Co., Ltd. | 14,831,681.50 | 14,831,681.50 | 14,831,681.50 | 14,831,681.50 | 2.39% | |||||
| Shenzhen Jiafeng Textile Co., ltd. | 16,800,000.00 | 16,800,000.00 | 16,800,000.00 | 16,800,000.00 | 10.80% | |||||
| Shenzhen Guanhua Prnting & dyeing Co., Ltd. | 5,491,288.71 | 5,491,288.71 | 5,058,307.01 | 5,058,307.01 | 45.00% | |||||
| Shenzhen Union Development Group Co., Ltd | 2,600,000.00 | 2,600,000.00 | 2.87% | |||||||
| Shenzhen Xiangjiang Trade Co., Ltd. | 160,000.00 | 160,000.00 | 20.00% | |||||||
| Shenzhen Xinfang Knitting Co., Ltd. | 524,000.00 | 524,000.00 | 20.00% | |||||||
| Shenzhen Dailisi Knitting Co., Ltd. | 2,559,856.26 | 2,559,856.26 | 30.00% | |||||||
| Anhui | 25,410,209 | 25,410,209 | 7,622,659. | 7,622,659.50 | 50.00% | |||||
| Huapeng Textile Co., Ltd. | .50 | .50 | 50 | |||||||
| Shenzhen South Textile Co., Ltd. | 1,500,000.00 | 1,500,000.00 | 9.84% | |||||||
| Shenzhen South Textile Co., Ltd. | 4,243,705.44 | 4,243,705.44 | 266,654.99 | 266,654.99 | 50.00% | |||||
| Changxing Junying Investment Partnership | 28,500,000.00 | 28,500,000.00 | 57.00% | |||||||
| Total | 102,620,741.41 | 102,620,741.41 | 44,579,303.00 | 44,579,303.00 | -- |
| Category | Available for sale equity instruments | Available for sale debts instruments | Total | |
| Impairment amount at the beginning period | 44,579,303.00 | 44,579,303.00 | ||
| Impairment amount at the end of period | 44,579,303.00 | 44,579,303.00 |
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Addition investment | Deduction investment | Gains/loss under equity method | Other comprehensive income adjustmen | Other changes in equity | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| ts | |||||||||||
| I. Joint ventures | |||||||||||
| Shenzhen Haohao Property Leasing Co., Ltd. | 5,369,450.56 | 393,860.77 | 400,000.00 | 5,363,311.33 | |||||||
| Subtotal | 5,369,450.56 | 393,860.77 | 400,000.00 | 5,363,311.33 | |||||||
| 2. Affiliated Company | |||||||||||
| Shenzhen Changlianfa Printing & dyeing Company | 2,107,155.01 | 96,088.63 | 2,203,243.64 | ||||||||
| Jordan Garment Factory | 2,233,902.64 | -68,777.00 | 27,739.85 | 2,192,865.49 | |||||||
| Hongkong Yehui International Co., Ltd. | 10,670,226.35 | 195,773.27 | 92,609.30 | 198,456.00 | 10,760,152.92 | ||||||
| Subtotal | 15,011,284.00 | 223,084.90 | 120,349.15 | 198,456.00 | 15,156,262.05 | ||||||
| Total | 20,380,734.56 | 616,945.67 | 120,349.15 | 598,456.00 | 20,519,573.38 | ||||||
| Items | House, Building | Land use right | Construction in process | Total |
| I. Original price | ||||
| 1. Balance at period-beginning | 306,466,721.91 | 306,466,721.91 |
| 2.Increase in the current period | 2,499,538.83 | 2,499,538.83 | ||
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | ||||
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 308,966,260.74 | 308,966,260.74 | ||
| II.Accumulated amortization | ||||
| 1.Opening balance | 133,360,915.64 | 133,360,915.64 | ||
| 2.Increased amount ofthe period | 3,890,452.29 | 3,890,452.29 | ||
| (1) Withdrawal | 3,890,452.29 | 3,890,452.29 | ||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 137,251,367.93 | 137,251,367.93 | ||
| III. Impairment provision | ||||
| 1. Balance at period-beginning | ||||
| 2.Increased amount of the period | ||||
| (1) Withdrawal | 0.00 | |||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | ||||
| IV.Book value | ||||
| 1.Book value at period -end | 171,714,892.81 | 171,714,892.81 | ||
| 2.Book value at period-beginning | 173,105,806.27 | 173,105,806.27 |
| Items | Values | Reansons |
| The Guanhua Building | 49,231,570.92 | Settlement audit has not yet been completed. |
| Items | Houses & buildings | Machinery eqiupment | Transportations | Other | Total |
| I. Original price | |||||
| 1.Opening balance | 492,709,415.27 | 659,301,895.53 | 3,691,157.72 | 22,260,594.58 | 1,177,963,063.10 |
| 2.Increased amount ofthe period | 53,519,097.66 | 335,851,249.20 | 6,163,861.61 | 5,691,897.65 | 401,226,106.12 |
| (1) Purchase | 32,418,176.86 | 6,163,861.61 | 5,691,897.65 | 44,273,936.12 | |
| (2) Transferred from construction in progress | 53,519,097.66 | 303,433,072.34 | 356,952,170.00 | ||
| (3)Increased of Enterprise |
| Combination | |||||
| 3.Decreased amount of the period | 30,538.18 | 61,069.08 | 91,607.26 | ||
| （1）Disposal | 30,538.18 | 61,069.08 | 91,607.26 | ||
| 4. Balance at period-end | 546,228,512.93 | 995,122,606.55 | 9,855,019.33 | 27,891,423.15 | 1,579,097,561.96 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 113,563,999.41 | 389,901,922.93 | 3,268,450.66 | 15,095,489.91 | 521,829,862.91 |
| 2.Increased amount of the period | 7,007,923.62 | 28,096,254.46 | 102,362.04 | 806,264.61 | 36,012,804.73 |
| (1) Withdrawal | 7,007,923.62 | 28,096,254.46 | 102,362.04 | 806,264.61 | 36,012,804.73 |
| 3.Decrease in the reporting period | 16,879.34 | 29,389.84 | 46,269.18 | ||
| （1）Disposal | 16,879.34 | 29,389.84 | 46,269.18 | ||
| 4.Closing balance | 120,571,923.03 | 417,981,298.05 | 3,370,812.70 | 15,872,364.68 | 557,796,398.46 |
| III. Impairment provision | |||||
| 1.Opening balance | |||||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | |||||
| （1）Disposal | |||||
| 4. Closing balance | |||||
| IV. Book value | |||||
| 1.Book value of the period-end | 425,656,589.90 | 577,141,308.50 | 6,484,206.63 | 12,019,058.47 | 1,021,301,163.50 |
| 2.Book value of the | 379,145,415.86 | 269,399,972.60 | 422,707.06 | 7,165,104.67 | 656,133,200.19 |
period-begin
20. Project under construction(1)Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book value | Book balance | Provision for devaluation | Book value | |
| TFT-LCD polarizing film II project | 0.00 | 0.00 | 315,430,810.41 | 315,430,810.41 | ||
| 2500mm width production line | 1,280,703.35 | 1,280,703.35 | 500,168.25 | 500,168.25 | ||
| Engineering transformation | 10,673,306.16 | 10,673,306.16 | 4,629,218.20 | 4,629,218.20 | ||
| Other | 2,748,768.71 | 2,748,768.71 | 2,009,976.87 | 2,009,976.87 | ||
| Total | 14,702,778.22 | 14,702,778.22 | 322,570,173.73 | 322,570,173.73 | ||
| Name | Budget | Amount at year beginning | Increase at this period | Transferred to fixed assets | Other decrease | Balance in year-end | Proportion(%) | Progress of work | Capitalisation of interest accumulated balance | Including：Current amount of capitalization of interest | Capitalisation of interest ratio（%) | Source of funds |
| TFT-LCD polarizing film II project | 700,340,000.00 | 315,430,810.41 | 39,520,202.14 | 354,951,012.55 | 0.00 | 0.00 | 50.68% | Other | ||||
| Total | 700,340,000.00 | 315,430,810.41 | 39,520,202.14 | 354,951,012.55 | -- | -- | -- |
21. Engineering Material22.Liquidation of fixed assets23. Productive biological assets24. Oil-and-gas assets25. Intangible assets
（1）Information
In RMB
| Items | Land use right | Patent right | Non-proprietary technology | Proprietary technology | Software | Total |
| I. Original price | ||||||
| 1. Balance at period-beginning | 48,822,064.61 | 11,825,200.00 | 2,591,780.00 | 63,239,044.61 | ||
| 2.Increase in the current period | ||||||
| (1) Purchase | ||||||
| （2）Internal R & D | ||||||
| （3）Increased of Enterprise Combination | ||||||
| 3.Decreased amount of the period | 28,022.72 | 28,022.72 | ||||
| （1）Disposal | 28,022.72 | 28,022.72 | ||||
| 4. Balance at period-end | 48,822,064.61 | 11,825,200.00 | 2,563,757.28 | 63,211,021.89 | ||
| II.Accumulated amortization | ||||||
| 1. Balance at period-beginning | 11,283,873.79 | 11,825,200.00 | 1,259,297.42 | 24,368,371.21 | ||
| 2. Increase in the current period | 508,071.86 | 112,090.88 | 620,162.74 | |||
| (1) Withdrawal | 508,071.86 | 112,090.88 | 620,162.74 |
| 3.Decreased amount of the period | ||||||
| （1）Disposal | ||||||
| 4. Balance at period-end | 11,791,945.65 | 11,825,200.00 | 1,371,388.30 | 24,988,533.95 | ||
| III. Impairment provision | ||||||
| 1. Balance at period-beginning | ||||||
| 2. Increase in the current period | ||||||
| (1) Withdrawal | ||||||
| 3.Decreased amount of the period | ||||||
| （1）Disposal | ||||||
| 4. Balance at period-end | ||||||
| 4. Book value | ||||||
| 1.Book value at period -end | 37,030,118.96 | 1,192,368.98 | 38,222,487.94 | |||
| 2.Book value at period-beginning | 37,538,190.82 | 1,332,482.58 | 38,870,673.40 |
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance |
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Shenzhen Shenfang Import and Export Co., Ltd. | 82,246.61 | 82,246.61 | ||||
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd | 9,614,758.55 | 9,614,758.55 | ||||
| Total | 11,864,346.37 | 11,864,346.37 |
| Investee | Balance in year-begin | Increased at this period | .Decreased at this period | Balance in year-end | ||
| Shenzhen Beauty Century Garment Co., Ltd. | 2,167,341.21 | 2,167,341.21 | ||||
| Shenzhen Shenfang Import and Export Co., Ltd. | 82,246.61 | 82,246.61 | ||||
| Shenzhen Shengbo Optoelectronic Technology Co., | 9,614,758.55 | 9,614,758.55 | ||||
| Ltd | ||||||
| Total | 11,864,346.37 | 11,864,346.37 |
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Renovation fee | 841,713.23 | 294,770.06 | 73,649.05 | 0.00 | 1,062,834.24 |
| Other | 193,576.85 | 7,800.00 | 81,487.77 | 0.00 | 119,889.08 |
| Total | 1,035,290.08 | 302,570.06 | 155,136.82 | 0.00 | 1,182,723.32 |
| Items | Balance in year-end | Balance in year-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets depreciation reserves | 5,263,784.32 | 1,315,946.08 | 5,190,838.04 | 1,297,709.51 |
| Unattained internal sales profits | 2,636,093.43 | 395,414.03 | 2,680,650.70 | 402,097.62 |
| Changes in fair value of available for sale financial assets | 1,626,459.45 | 406,614.86 | 946,303.68 | 236,575.93 |
| Temporary differences in the formation of equity incentives | 2,029,115.04 | 507,278.76 | 152,615.37 | 38,153.84 |
| Other | ||||
| Total | 11,555,452.24 | 2,625,253.73 | 8,970,407.79 | 1,974,536.90 |
| Items | Trade-off between the | End balance of deferred | Trade-off between the | Opening balance of |
| deferred income tax assets and liabilities | income tax assets or liabilities after off-set | deferred income tax assets and liabilities at period-begin | deferred income tax assets or liabilities after off-set | |
| Deferred income tax assets | 2,625,253.73 | 1,974,536.90 |
| Items | Balance in year-end | Balance in year-begin |
| Deductible temporary difference | 84,544,641.61 | 80,615,487.41 |
| Deductible loss | 356,787,195.90 | 486,014,140.23 |
| Total | 441,331,837.51 | 566,629,627.64 |
| Year | Balance in year-end | Balance in year-begin | Remark |
| 2018 | 129,226,944.33 | ||
| 2019 | 148,095,898.11 | 148,095,898.11 | |
| 2020 | 83,990,395.00 | 83,990,395.00 | |
| 2021 | 124,700,902.79 | 124,700,902.79 | |
| Total | 356,787,195.90 | 486,014,140.23 | -- |
| Items | Balance in year-end | Balance in year-begin |
| Advance payment for equipment fund | 2,772,114.56 | |
| Dvance payment for technical services | 42,346,134.84 | 44,394,879.92 |
| Total | 42,346,134.84 | 47,166,994.48 |
| Items | Balance in year-end | Balance in year-Beginning |
| Credit loans | 197,389,295.07 | 88,638,181.45 |
| Total | 197,389,295.07 | 88,638,181.45 |
| Items | Balance in year-end | Balance in year-begin |
| Bank acceptance bills | 19,500,000.00 | |
| Total | 19,500,000.00 |
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 61,389,841.01 | 96,043,721.23 |
| 1-2 years | 27,566.50 | 37,402.40 |
| 2-3 years | 27,402.40 | 37,083.00 |
| 3-4 years | 17,083.00 | 300,642.80 |
| 4-5 years | 300,642.80 | 37,090.00 |
| Over 5 years | 445,253.53 | 648,757.75 |
| Total | 62,207,789.24 | 97,104,697.18 |
| Tems | Balance in year-end | The reason for not repaid or carried forward |
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 37,597,370.18 | 33,708,344.84 |
| 1-2 years | 240,275.96 | |
| 2-3 years | 364,922.45 | |
| 3-4 years | ||
| Over 5 years | 639,024.58 | 639,024.58 |
| Total | 38,236,394.76 | 34,952,567.83 |
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| I. Short –term wages | 29,503,260.65 | 67,445,438.28 | 78,606,725.73 | 18,341,973.20 |
| II. Welfare afterlwaving of position-fixed provision scheme | 5,643,995.77 | 5,643,995.77 | ||
| Total | 29,503,260.65 | 73,089,434.05 | 84,250,721.50 | 18,341,973.20 |
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| 1.Wages, bonuses, allowances and subsidies | 27,846,341.48 | 58,837,127.93 | 70,012,519.68 | 16,670,949.73 |
| 2.Employee welfare | 3,835,600.53 | 3,835,600.53 | ||
| 3. Social insurance premiums | 1,062,233.15 | 1,062,233.15 | ||
| Including：Medical insurance | 834,782.99 | 834,782.99 | ||
| Work injury insurance | 114,298.25 | 114,298.25 | ||
| Maternity insurance | 113,151.91 | 113,151.91 | ||
| 4. Public reserves for housing | 2,489,156.08 | 2,489,156.08 | ||
| 5.Union funds and staff education fee | 1,656,919.17 | 1,221,320.59 | 1,207,216.29 | 1,671,023.47 |
| Total | 29,503,260.65 | 67,445,438.28 | 78,606,725.73 | 18,341,973.20 |
（3）Defined contribution plans listed
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 4,686,509.82 | 4,686,509.82 | ||
| 2.Unemployment insurance | 135,191.10 | 135,191.10 | ||
| 3. Annuity payment | 822,294.85 | 822,294.85 | ||
| Total | 5,643,995.77 | 5,643,995.77 |
| Items | At end of term | At beginning of term |
| VAT | 447,369.40 | 548,014.78 |
| Expenditure taxes | 0.00 | |
| Enterprise Income tax | 3,849,800.68 | 3,912,084.91 |
| Individual Income tax | 1,059,630.01 | 704,212.04 |
| City Construction tax | 36,389.98 | 34,389.37 |
| House property tax | 2,948,571.06 | 1,541,424.38 |
| Educational surtax | 24,878.61 | 22,055.75 |
| Other | 305,233.36 | 173,081.34 |
| Total | 8,671,873.10 | 6,935,262.57 |
| Items | At end of term | At beginning of term |
| Interest on long-term borrowings payable | 46,643,162.06 | 44,446,217.66 |
| Interest on short-term borrowings | 447,233.47 | 195,135.86 |
| Total | 47,090,395.53 | 45,799,544.04 |
40. Dividends payable41.Other payable
（1）Disclosure by nature
In RMB
| Items | At end of term | At beginning of term |
| Engineering Equipment fund | 77,786,803.19 | 34,977,749.54 |
| Unit account | 48,697,613.74 | 48,697,613.74 |
| Deposit | 25,018,600.58 | 25,090,664.49 |
| Restrictive stock repurchase obligation | 27,230,679.00 | 27,230,679.00 |
| Other | 23,901,272.84 | 19,030,092.77 |
| Total | 202,634,969.35 | 155,026,799.54 |
| Items | At end of term | At beginning of term |
| Long-term loans due within 1 year | 40,000,000.00 | |
| Total | 40,000,000.00 |
| Items | At end of term | At beginning of term |
| Credit borrowings | 40,000,000.00 | 40,000,000.00 |
| Total | 40,000,000.00 | 40,000,000.00 |
46.Bond payable47. Long-term payable48. Long-term employee salary payable49. Specific payable50. Estimates liabilities51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Govemment Subsidy | 134,767,064.72 | 5,396,000.00 | 5,812,167.76 | 134,350,896.96 | |
| Total | 134,767,064.72 | 5,396,000.00 | 5,812,167.76 | 134,350,896.96 | -- |
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-relatedorincome-related |
| Textile special funds | 714,285.73 | 71,428.58 | 642,857.15 | Related to assets | ||||
| High-tech Industrialization demonstration projects | 400,000.00 | 100,000.00 | 300,000.00 | Related to assets | ||||
| National grant fundsfor new flat panel display industry | 2,000,000.00 | 500,000.00 | 1,500,000.00 | Related to assets | ||||
| Grant funds for TFT-LCD polarizer industry project | 5,633,333.34 | 649,999.97 | 4,983,333.37 | Related to assets | ||||
| Grant funds for TFT-LCD | 2,500,000.00 | 250,000.02 | 2,249,999.98 | Related to assets |
| polarizer narrow line (line 5) project | ||||||||
| Purchase of imported equipment and technology | 852,106.98 | 87,545.09 | 764,561.89 | Related to assets | ||||
| Innovation and venture capital for TFT-LCD polarier I project | 250,000.00 | 25,000.04 | 224,999.96 | Related to assets | ||||
| Shenzhen polarizing materials and Technology Engineering Laboratory innovation venture capital | 362,500.00 | 25,000.02 | 337,499.98 | Related to assets | ||||
| Shenzzhen Engineering laboratory polarizing material and technical engineeting | 3,625,000.00 | 250,000.02 | 3,374,999.98 | Related to assets | ||||
| Capital funding for Technology Center | 2,175,000.00 | 150,000.00 | 2,025,000.00 | Related to assets | ||||
| Subsidy funds to support the introduction of advanced technology | 71,940.51 | 7,194.00 | 64,746.51 | Related to assets | ||||
| Grant funds for TFT-LCD polarizer narrow line | 15,000,000.00 | 15,000,000.00 | Related to assets |
| (line 6) project | ||||||||
| Grant funds for TFT-LCD polarizer narrow line (line 6) project | 10,000,000.00 | 10,000,000.00 | Related to assets | |||||
| Grant funds for TFT-LCD polarizer narrow line (line 6) project | 500,000.00 | 500,000.00 | Related to assets | |||||
| key technology research and development projects of optical compensation film for polarizer | 4,625,000.00 | 250,000.02 | 4,374,999.98 | Related to assets | ||||
| Strategic industries Development fund of Guangdong Province | 25,000,000.00 | 25,000,000.00 | Related to assets | |||||
| Grants of Purchase equipment of TFT-LCD polarizing film phase II project | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Energy saving transformation grant funds | 116,101.49 | 116,101.49 | Related to assets | |||||
| Polarization Industrialization Project for Super | 30,000,000.00 | 30,000,000.00 | Related to assets |
| Large-sized TVs (Line 7) Central Budget Investment | ||||||||
| Old Elevator Renovation Fund Subsidy | 941,796.67 | 50,000.00 | 891,796.67 | Related to assets | ||||
| Shenzhen standard special fund subsidy | 960,000.00 | 960,000.00 | Related to income | |||||
| Research on Key Technology of Polarizer for Ultra-thin IPS Smartphone Terminal | 0.00 | 2,000,000.00 | 2,000,000.00 | Related to assets | ||||
| Government subsidies related to income | 2,436,000.00 | 2,436,000.00 | Related to income | |||||
| Total | 134,767,064.72 | 5,396,000.00 | 5,812,167.76 | 134,350,896.96 | -- |
Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Our
company will use 10 years as asset depreciation period for amortization in current period. The other income incurrent period is RMB100,000.00 and the balance amount of unfinished final amortization is RMB300,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office ofthe State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidies
RMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel Display
Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization forTFT-LCD”. On June 2009, December 2009 and April 2010, the company received the special subsidies of State
Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciationperiod for amortization. The non-operating income in current period is RMB500,000.00, the balance amount ofunfinished final amortization is RMB1,500,000.00.
(4) In accordance with the Notice of Forwarding the Reply of General Office of State Development and ReformCommission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV Industryissued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State Developmentand Reform Commission approved including the project of industrialization of polarizer sheet for TFT-LCD ofShengbo Optoelectronic Company into the special plan for strategic transformation and industrialization of colorTV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Companyfor the research and development in the process of the project of industrialization and the purchase of requiredsoftware and hardware equipment. On June 2012 and September 2013, the company received the national grantsof RMB 10,000,000.00.. According to the Notice of Issuing the Governmental Investment Plan for 2011Regarding Demonstration Project of High-tech Industrialization Including Specialized Services Such As DisasterRecovery of Financial Information System issued by Shenzhen Development and Reform Commission (Shen FaGai (2012) No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization ofpolarizer sheet for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period foramortization in current period.The non-operating income in current period is RMB649,999.97. and the balanceamount of unfinished final amortization is RMB4,983,333.37.
(5) According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological, Internet,New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No. 1782), theCompany received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project of polarizersheet for TFT-LCD on February 2012. The Company planned to amortize the subsidy over 10 years according tothe depreciation period of relevant assets. The non-operating income in current period is RMB250,000.02 and thebalance amount of unfinished final amortization is RMB2,249,999.98.
(6) On October 2013, The company received the grants for the purchase of imported equipment and technology in2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to thedepreciation period of relevant assets.The non-operating income in current period is RMB87,545.09 and thebalance amount of unfinished final amortization is RMB764,561.89.
(7) On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The non-operating income in current period is RMB25,000.04 and the balance amount of
unfinished final amortization is RMB224,999.96元.
(8) On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The non-operating income in current period is RMB25,000.02 and the balance amount ofunfinished final amortization is RMB337,499.98.
(10) According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. forProject Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012)No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to beestablished on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. Asapproved by Shenzhen Municipal People's Government, this project was included in the plan for supporting thefourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012(new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterpriseswith Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241),the Company received subsidy of RMB 5,000,000.00 on December 2012 for purchasing instruments and equipmentand improving existing technological equipment and test conditions. The fund gap will be filled by the Companythrough raising funds by itself. the Company planned to amortize the subsidy over 10 years according to thedepreciation period of relevant assets. The non-operating income in current period is RMB250,000.02 and thebalance amount of unfinished final amortization is RMB3,374,999.98.
(10) According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including
Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and
Development Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center of
Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipal R&D center. In December2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center.the Company planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The non-operating income in current period is RMB150,000.00 and the balance amount of unfinished finalamortization is RMB2,025,000.00.
(11)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the subsidy over 10 yearsaccording to the depreciation period of relevant assets. The non-operating income in current period isRMB7,194.00 and the balance amount of unfinished final amortization is RMB64,746.51.
(12) According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen ShengboOptoelectronic Technology Co., Ltd. application for local matching funds of TFT-LCD polarizing film II project(Line 6) " (Shenzhen DRC [2013]No. 1771), the company obtained TFT-LCD polarizing film II project (line 6)local matching funds of RMB 15,000,000.00 in April 2014.The fund gap will be filled by the Company throughraising funds by itself. The subsidy will be amortized over the depreciation period from the day when relevantassets get ready for intended use.
(13) According to "National Development and Reform Commission issued on industrial transformation andupgrading projects (2
nd
industrial restructuring) notify the central budget for 2014 investment plan" (NDRCInvestment [2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB
10,000,000.00 in December 2014.The fund gap will be filled by the Company through raising funds by itself. Thesubsidy will be amortized over the depreciation period from the day when relevant assets get ready for intendeduse.
(14) In December 2014, the company received innovation venture capital (matching funding category) for Ping
Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB500,000.00.The fund gap will be filled by the Company through raising funds by itself. The subsidy will beamortized over the depreciation period from the day when relevant assets get ready for intended use;
(15)On Jan. 2015, the company received RMB 5 million of grants for key technologyresearch and development projects of optical compensation film for polarizer from Shenzhen Scientific andTechnological Innovation Committee. The company has reached the expected date of use of the assets., theCompany planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.The other income in current period is RMB250,000.02 and the balance amount of unfinished final amortization isRMB4,374,999.98.
(16). According to “Reply on Congregating Development in Emerging Industrial Area Strategic PilotImplement Scheme of Guangdong Province ”(Reform and Development Office High-Tech [2013] No.2552,On
December 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCDpolarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industriesand the future development of industrial matching funds,The company will defer income share transferred in thecurrent profit and loss on the basis of depreciation life as of the date of the predetermined workability state therelated assets
(17). According to Reform and Development Commission of Shenzhen Municipality sending the notice of
“Reply of National Reform and Development Office on Investing in Petrifaction and Medicine Project withinCentral Budget of 2013 for Industry Structure Adjustment Special Project”(Reform and Development
Commission of Shenzhen Municipality [2013]No.1449) , the Company received 30 million RMB of newproduction line of TFT-LCD polarizer project period II and equipment purchase subsidy in August2015 ,December 2015 and September 2016.The company will defer income share transferred in the currentprofit and loss on the basis of depreciation life as of the date of the predetermined workability state the relatedassets reach.
(18). In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and 34,535.45 RMBon energy-saving reconstruction, amortized by 8-year depreciation life of the relevant asset, the Other income wasRMB 0.00 at the current period, the ending balance without amortization was RMB 116,101.49.
19. According to the Notice of the Ministry of Industry and Information Technology of the NationalDevelopment and Reform Commission for Releasing the Central Budgetary Investment Plan of the 2017 of theTechnical Transformation of the Electronic Information Industry (NDRC Investment {2017} No. 1649), thecompany received oversize TV for use in November 2017. In November 2017, the company received an centralbudgetary investment of RMB 30,000,000.00 of the oversized TV polarizer industry project. The company shalltransfer the deferred income to the current profit or loss for the period of depreciation from the date when therelevant assets are ready for their intended use.
20. In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, which wasapportioned according to the depreciation period of the relevant assets. The current period was included in otherincome of 50,000.00 yuan, and the unassessed balance at the end of the period was 891,796.67 yuan.
21. According to the regulations of Management Measures of Shenzhen City to Build Shenzhen StandardSpecial Funds (SCG [2016] No. 7) and Operating Procedures of Shenzhen City to Create Shenzhen Standard
Special Funding (SSZG [2017] No. 2), the national standard “Determination Method for the Adhesion ofPolarizer Optical Film Coating” developed by the company was awarded 600,000 yuan by the ShenzhenMunicipal Market and Quality Supervision and Administration Committee; the national standard “Determinationof Optical Compensation Value of Polarizer” developed by the company was funded 360,000 yuan by Shenzhen
Municipal Committee of Market and Quality Supervision and Administration, and the money arrived on January26, 2018.
22. In accordance with the development plans and policies of Shenzhen Municipality for Strategic emerging
Industries, the Management Measures of Shenzhen City on Funds for Scientific and Technological Research andDevelopment, the Management Measures of Shenzhen City on Science and Technology Plan Project and otherrelevant documents, Shenzhen Science and Technology Innovation Commission and the company completed thedevelopment of the key technology of the 20170535 ultra-thin polarizer used in IPS smart phone terminal in theShenzhen Science and Technology Plan issued by SFG [2017] No. 1447 document. In February 2018, thecompany received funding from Shenzhen Science and Technology Innovation Commission of 2,000,000 yuanfor R & D. The company will transfer the deferred income to the current profit and loss according to thedepreciation period from the date when the relevant assets reach the expected usable status.
23. According to the notice on Certain Measures for Promoting Scientific and Technological Innovation (SF
[2016] No. 7), the company received a corporate R&D grant of RMB 2,436,000 from the Shenzhen Science andTechnology Innovation Committee on January 25, 2018.
52.Other Non-current liabilities53.Stock capital
In RMB
| Balance in year-begin | Changed（+，-） | Balance in year-end | |||||
| Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | |||
| Total of capital shares | 511,274,149.00 | 511,274,149.00 | |||||
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 1,848,960,987.54 | 1,848,960,987.54 |
| Other | 17,040,487.63 | 3,451,194.00 | 20,491,681.63 | |
| Total | 1,866,001,475.17 | 3,451,194.00 | 1,869,452,669.17 |
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Treasury stock | 27,230,679.00 | 27,230,679.00 | ||
| Total | 27,230,679.00 | 27,230,679.00 |
| Items | Year-beginning balance | Amount of current period | Year-end balance | ||||
| Amount for the period before income tax | Less：Previously recognized in profit or loss in other comprehensive income | Less：Income tax | After - tax attributable to the parent company | After - tax attributable to minority shareholders | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | 2,218,703.87 | -559,806.62 | -170,038.95 | -389,767.67 | 1,828,936.20 | ||
| Gains and losses from changes in fair value of financial assets available for sale | 1,500,778.50 | -680,155.77 | -170,038.95 | -510,116.82 | 990,661.68 | ||
| Translation differences of financial statements denominated | 717,925.37 | 120,349.15 | 120,349.15 | 838,274.52 | |||
| Total of other comprehensive income | 2,218,703.87 | -559,806.62 | -170,038.95 | -389,767.67 | 1,828,936.20 | ||
| Items | Year-beginning balance | Increase in the current | Decrease in the current | Year-end balance |
| period | period | |||
| Statutory surplus reserve | 77,477,042.19 | 77,477,042.19 | ||
| Total | 77,477,042.19 | 77,477,042.19 |
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | -32,266,087.44 | -81,275,828.76 |
| Retained earnings after adjustments at the year end | -32,266,087.44 | -81,275,828.76 |
| Add: Net profit attributable to owners of the Company for the period | 9,646,976.15 | 14,457,841.63 |
| Retained profits at the period end | -22,619,111.29 | -66,817,987.13 |
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 469,020,785.79 | 413,056,967.08 | 563,241,779.76 | 507,497,595.29 |
| Other business | 69,267,264.82 | 66,061,633.29 | 176,095,977.11 | 170,119,600.50 |
| Total | 538,288,050.61 | 479,118,600.37 | 739,337,756.87 | 677,617,195.79 |
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 293,239.29 | 1,877,415.61 |
| Education surcharge | 210,850.54 | 1,341,011.11 |
| Property tax | 2,891,819.92 | 2,827,811.60 |
| Land use tax | 176,423.79 | 172,077.94 |
| vehicle and vessel usage tax | 3,960.00 | 4,800.00 |
| Stamp tax | 260,786.33 | 335,365.36 |
| Other | 3,476.25 | 30,536.23 |
| Total | 3,840,556.12 | 6,589,017.85 |
| Items | Amount of current period | Amount of previous period |
| Wage | 1,477,791.73 | 1,442,735.16 |
| Exhibition fee | 124,705.56 | 128,319.69 |
| Business expenses | 214,533.49 | 344,967.24 |
| Transportation changes | 1,402,849.04 | 1,507,900.57 |
| Samples and product loss | 179,001.34 | 170,061.25 |
| Other | 381,530.37 | 413,059.23 |
| Total | 3,780,411.53 | 4,007,043.14 |
| Items | Amount of current period | Amount of previous period |
| Wage | 23,790,598.33 | 18,043,421.42 |
| Property insurance | 123,836.06 | 144,107.56 |
| Repair charge | 1,804,835.86 | 351,038.26 |
| Business entertainment | 485,191.77 | 394,601.48 |
| Travel expenses | 512,976.10 | 400,427.52 |
| Office expenses | 515,020.20 | 351,040.92 |
| Water and electricity | 2,017,209.50 | 1,310,312.83 |
| Agency expenses | 1,639,670.22 | 1,163,200.26 |
| R& D | 21,189,099.82 | 10,940,877.48 |
| Board fees | 54,119.00 | 29,223.00 |
| Other | 4,848,892.78 | 3,718,815.43 |
| Depreciation of fixed assets | 4,788,853.45 | 3,360,019.17 |
| Amortization of intangible assets | 648,185.46 | 630,995.46 |
| Low consumables amortization | 9,731.00 | 8,487.70 |
| Total | 62,428,219.55 | 40,846,568.49 |
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 3,428,083.94 | 2,240,228.08 |
| Interest income | -13,277,267.58 | -17,274,220.29 |
| Exchange loss | 4,824,219.83 | 1,753,688.28 |
| Fees and other | 1,172,376.15 | 1,242,947.35 |
| Total | -3,852,587.66 | -12,037,356.58 |
| Items | Amount of current period | Amount of previous period |
| I .Losses for bad debts | 278,909.76 | 522,788.58 |
| II. Losses for falling price of inventory | 17,115,422.28 | 30,137,044.41 |
| Total | 17,394,332.04 | 30,659,832.99 |
| Items | Amount of current period | Amount of previous period |
| Investment income from the disposal of long-term equity investment | 616,945.67 | 1,620,115.63 |
| Hold the investment income during from available-for-sale financial assets | 574,774.15 | 526,586.44 |
| Other | 27,360,990.33 | 20,808,333.32 |
| Total | 28,552,710.15 | 22,955,035.39 |
69. Assets disposal income70.Other income
In RMB
| Source | Amount of current period | Amount of previous period |
| Government Subsidy | 5,812,167.76 | 5,143,961.90 |
| Items | Amount of current period | Amount of previous period | Recorded in the amount of the non-recurring gains and losses |
| Government Subsidy | 55,009.21 | 517,000.00 | 55,009.21 |
| Gains from disposal of non-current assets | 24,597.81 | 1,510.00 | 24,597.81 |
| Other | 10,301.15 | 9,910.24 | 10,301.15 |
| Total | 89,905.17 | 528,419.77 | 89,905.17 |
| Items | Issuing subject | Reason | Nature | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Amount of current period | Amount of previous period | Assets-relate d/income -related |
| Shenzhen City Market and Supervision and Management Commissionallocated intellectual property patent grant | Subsidy | Because research and development, technical updates and transformation of subsidies | Yes | No | 17,000.00 | Relate to income | ||
| Shenzhen | Subsidy | Because | Yes | No | 500,000.00 | Relate to |
| Science and Technology Innovation Committee allocated 2016 annual science and technology award | research and development, technical updates and transformation of subsidies | income | ||||||
| Shenzhen Social Security Bureau | Subsidy | Yes | No | 55,009.21 | Relate to income | |||
| Total | -- | -- | -- | -- | -- | 55,009.21 | 517,000.00 | -- |
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Non-current asset Disposition loss | 43,338.08 | 3,281.59 | 4,338.08 |
| Other | 110,000.00 | 196.77 | 110,000.00 |
| Total | 153,338.08 | 3,478.36 | 153,338.08 |
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 5,972,581.36 | 7,902,446.59 |
| Deferred income tax expense | -650,716.83 | -159,488.32 |
| Total | 5,321,864.53 | 7,742,958.27 |
| Items | Amount of current period |
| Total profits | 9,879,963.66 |
| Income tax computed in accordance with the applicable tax rate | 2,469,990.92 |
| Effect of different tax rate applicable to the subsidiary Company | 1,302,252.17 |
| Influence of income tax before adjustment | 10,551.90 |
| Influence of non taxable income | -210,923.73 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | 150,670.21 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 1,599,323.06 |
| Other | |
| Income tax expense | 5,321,864.53 |
| Items | Amount of current period | Amount of previous period |
| Government Subsidy | 5,396,000.00 | 3,409,000.00 |
| Bank deposit interest income and other | 20,764,799.70 | 32,239,684.61 |
| Total | 26,160,799.70 | 35,648,684.61 |
| Items | Amount of current period | Amount of previous period |
| R&D | 15,280,060.45 | 10,940,877.48 |
| Office Expense | 515,020.20 | 351,040.92 |
| Business fee | 699,725.26 | 739,568.72 |
| Travel expenses | 632,243.41 | 400,427.52 |
| Transportation fee | 1,402,849.04 | 1,507,900.57 |
| Agency Charge | 1,639,670.22 | 1,163,200.26 |
| Insurance expenses | 123,836.06 | 144,107.56 |
| Water and electricity | 2,017,209.50 | 1,310,312.83 |
| Rental fee | 1,804,835.86 | 351,038.26 |
| Exhibition expenses | 124,705.56 | 128,319.69 |
| Other | 1,340,140.71 | 75,148,367.33 |
| Total | 25,580,296.27 | 92,185,161.14 |
| Items | Amount of current period | Amount of previous period |
| Structured deposits, financial products, principal and income | 1,903,828,974.66 | 2,205,083,032.64 |
| Total | 1,903,828,974.66 | 2,205,083,032.64 |
| Items | Amount of current period | Amount of previous period |
| Structure deposit investment | 1,830,500,000.00 | 1,883,000,000.00 |
| Total | 1,830,500,000.00 | 1,883,000,000.00 |
| Items | Amount of current period | Amount of previous period |
| Obtain loans from affiliated parties | 6,809,000.00 | |
| Total | 6,809,000.00 |
| Items | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities | -- | -- |
| Net profit | 4,558,099.13 | 12,536,435.62 |
| Add: Impairment loss provision of assets | -3,940,075.77 | -164,403.72 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 40,523,419.76 | 40,264,166.05 |
| Amortization of intangible assets | 620,162.74 | 630,995.46 |
| Amortization of Long-term deferred expenses | 155,136.82 | 148,559.98 |
| Loss on scrap of fixed assets | 43,338.08 | 3,281.59 |
| Financial cost | -3,852,587.66 | -13,992,394.49 |
| Loss on investment | -28,152,710.15 | -22,955,035.39 |
| Decrease in deferred income tax assets | -650,716.83 | 159,488.32 |
| Decrease of inventories | -45,300,979.12 | -13,178,629.92 |
| Decease of operating receivables | -78,431,655.56 | -56,290,615.85 |
| Increased of operating Payable | -14,422,320.88 | -45,338,248.59 |
| Net cash flows arising from operating activities | -128,850,889.44 | -98,176,400.94 |
| II. Significant investment and financing activities that without cash flows: | -- | -- |
| 3．Movement of cash and cash equivalents： | -- | -- |
| Ending balance of cash | 1,014,735,793.86 | 1,017,636,623.46 |
| Less: Beginning balance of cash equivalents | 1,161,240,139.33 | 930,114,436.57 |
| Net increase of cash and cash equivalents | -146,504,345.47 | 87,522,186.89 |
| Items | Year-end balance | Year-beginning balance |
| I. Cash | 1,014,735,793.86 | 1,161,240,139.33 |
| Including：Cash at hand | 1,720.24 | 17,771.09 |
| Demand bank deposit | 1,012,714,691.65 | 1,159,202,998.15 |
| Demand other monetary funds | 2,019,381.97 | 2,019,370.09 |
| III. Balance of cash and cash equivalents at the period end | 1,014,735,793.86 | 1,161,240,139.33 |
In RMB
| Items | Closing foreign currency balance | Exchange rate | Closing convert to RMB balance |
| Including：USD | 1,362,638.73 | 6.6166 | 9,016,035.42 |
| HKD | 471,035.43 | 0.8431 | 397,129.97 |
| JPY | 2,034,840.00 | 0.059914 | 121,915.40 |
| Including：USD | 5,663,343.89 | 6.6166 | 37,472,081.18 |
| HKD | 278,280.00 | 0.8431 | 234,617.87 |
| Other receivable | |||
| Including：USD | 37,399.02 | 6.6166 | 247,454.36 |
| Account payable | |||
| Including： HKD | 2,010,068.33 | 0.8431 | 1,694,688.61 |
| USD | 1,021,849.50 | 6.6166 | 6,761,169.40 |
| JPY | 211,992,000.00 | 0.059914 | 12,701,288.69 |
| Account payable | |||
| Including：USD | 2,512,331.38 | 6.6166 | 16,623,091.81 |
| JPY | 494,151,302.66 | 0.059914 | 29,606,581.15 |
| Short-term loans | |||
| Including：USD | 6,408,298.91 | 6.6166 | 42,401,150.57 |
| JPY | 768,403,787.00 | 0.059914 | 46,038,144.49 |
| Interest payable | |||
| Including：USD | 52,815.07 | 6.6166 | 349,456.19 |
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Lishi Industry Development Co., Ltd | Shenzhen | Shenzhen | Domestic trade, Property Management | 100.00% | Establish | |
| Shenzhen Huaqiang Hotel | Shenzhen | Shenzhen | Accommodation, restaurants, business center; | 100.00% | Establish | |
| Shenfang Property Management Co., Ltd. | Shenzhen | Shenzhen | Property Management | 100.00% | Establish | |
| Shenzhen Beauty Century Garment Co., Ltd. | Shenzhen | Shenzhen | Production of fully electronic jacquard knitting whole shape | 100.00% | Establish | |
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | Shenzhen | Shenzhen | Polarizer production and sales | 60.00% | Establish | |
| Shenzhen Shenfang Import & export Co., Ltd. | Shenzhen | Shenzhen | Operating import and export business | 60.00% | Establish | |
| Shengtou (Hongkong) Co.,Ltd. | Hongkong | Hongkong | Production and sales of polarizer | 60.00% | Establish | |
| Name | Holding proportion of non-controlling interest | Profit or loss attributable to non-controlling | Dividend declared to non-controlling interest | Closing balance of non-controlling interest |
| interest | ||||
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | 40.00% | -5,088,877.02 | 0.00 | 1,121,281,524.77 |
| Subsidiaries | Closing balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total liabilities | |
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | 2,238,554,050.83 | 1,109,980,295.03 | 3,348,534,345.86 | 393,602,324.26 | 172,700,141.65 | 566,302,465.91 | 2,225,795,205.28 | 1,056,083,463.64 | 3,281,878,668.92 | 328,224,382.21 | 172,994,880.83 | 501,219,263.04 |
| Subsidiaries | Current term | Last term | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | 392,382,938.55 | -13,141,819.59 | -13,141,819.59 | -123,066,997.41 | 377,252,892.13 | -9,376,931.35 | -9,376,931.35 | -129,287,756.72 |
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | The accounting treatment of investment in associates | |
| direct | indirect | |||||
| Shenzhen Haohao | Shenzhen | Shenzhen | Property leasing | 50.00% | Equity method | |
| Property Leasing Co., Ltd. | ||||||
| Shenzhen Changlianfa Printing and dyeing Company | Shenzhen | Shenzhen | Property leasing | 40.25% | Equity method | |
| Jordan Garment Factory | Jordan | Jordan | Manufacturing | 35.00% | Equity method | |
| Yehui International Co., Ltd. | Hongkong | Hongkong | Manufacturing | 22.75% | Equity method |
| Year-end balance/ Amount of current period | Year-beginning balance/ Amount of previous period | |
| Joint venture： | -- | -- |
| Total book value of the investment | 5,363,311.33 | 5,369,450.56 |
| Total amount of the pro rata calculation of the following items | -- | -- |
| -- Net profit | 393,860.77 | 262,962.99 |
| -- Total comprehensive income | 393,860.77 | 262,962.99 |
| Associated enterprise： | -- | -- |
| Total book value of the investment | 15,156,262.05 | 15,011,284.00 |
| Total amount of the pro rata calculation of the following items | -- | -- |
| --Net profit | 223,084.90 | 838,516.63 |
| --Other Comprehensive income | 120,349.15 | -885,191.31 |
| --Total comprehensive income | 343,434.05 | -46,674.68 |
| Name | Main operating place | Registration place | Business nature | Proportion /shareportion | |
| Directly | Indirectly | ||||
| Guanhua Building | Shenzhen | Shenzhen | Cooperate | 50.16% | |
According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on cooperativedevelopment and construction of Guanhua building", jointly developed Guanhua building construction, the company invested 50.16%, Hong Qiao Hui Industrial Co., Ltd. invested 49.84%, the two sides need to agree matters affecting the cooperation projects.
Guanhua Building project has been completed in the current reporting period, and the two parities carried out thesplit according to the actual investment ratio of 50.16% and 49.84%.X. The risk related financial instrumentsXI. Disclosure of fair value1. Ending fair value of the assets and liabiliies measured by fair value
In RMB
| Items | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (1).Available for sale financial assets | 7,314,138.86 | 7,314,138.86 | ||
| 1.Equity instrument investment | 7,314,138.86 | 7,314,138.86 | ||
| Total of Consistent fair value measurement | 7,314,138.86 | 7,314,138.86 | ||
| II. Non –persistent measure | -- | -- | -- | -- |
| Name | Registered address | Nature | Registered capital （ten thousand） | The parent company of the Company's | The parent company of the Company’s |
| shareholding ratio | vote ratio | ||||
| Shenzhen Investment Holdings Co.,Ltd. | 18/F, Investment Building, Shennan Road, Futian District, Shenzhen | Equity investment , Real-estate Development and Guarantee | 23,149 million | 46.21% | 49.39% |
| Name | Relation of other Related parties with the company |
| Shenzhen Haohao Property Leasing Co., Ltd. | Sharing Company |
| Shenzhen Changlianfa Printing and dyeing Company | Sharing Company |
| Yehui International Co., Ltd. | Sharing Company |
| Anhui Huapeng Textile Co., Ltd. | Sharing Company |
| Shenzhen Xinfang Knitting Co., Ltd. | Sharing Company |
| Shenzhen Dailishi Underwear Co., Ltd. | Sharing Company |
| Other related party | Relationship to the Company |
| Shenzhen Shenchao Technology Investment Co., Ltd. | Subject to the same party controls |
| Shenzhen Tianma Microelectronics Co., Ltd. | Chairman of the Board Is the Vice Chairman of the Company |
| Shengbo （HK）Co., Ltd. | The Company Executives are Director of the company |
| Shenzhen Xiangjiang Trade Co., Ltd. | Sharing Company |
| Hangzhou Jinjiang Group Co., Ltd. | On the subsidiary Shenzhen Shengbo Optoelectronics Technology Co., Ltd. has a significant impact on the actual control of the shareholders controlled by the enterprise |
| Kunshan Zhiqimei Material Technology Co., Ltd. | Jinjiang Group’s sharing company |
| Related party | Content | Current amount | Approval trading limit | Whether over the trading limit(Y/N) | Last amount |
| Kunshan Zhiqimei Material Technology Co., Ltd. | Purchasing polarizer | 14,103,038.28 | 18,602.39 |
| Related parties | Content of related transaction | Amount of current period | Amount of previous period |
| Shenzhen Tianma Microelectronics Co., Ltd. | Sales polarizer sheet | 1,166,047.31 | 3,044,298.73 |
| Items | 2018 payment | 2017 payment |
| Key managements payment | 2,643,194.00 | 1,897,026.00 |
6. Receivables and payables of related parties
（1）Receivables
In RMB
| Name | Related party | Amount at year end | Amount at year beginning | ||
| Balance of Book | Bad debt Provision | Balance of Book | Bad debt Provision | ||
| Account receivable | Shenzhen Tianma Microelectronics Co., Ltd. | 688,530.73 | 34,426.54 | 1,555,500.44 | 77,775.02 |
| Other Account receivable | Anhui Huapeng Textile Company | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 |
| Other Account receivable | Shenzhen Dailishi Underwear Co., Ltd. | 500,000.00 | 25,000.00 | 440,508.46 | 22,025.42 |
| Account receivable | Kunshan Zhiqimei Material Technology Co., Ltd. | 499,445.21 | 24,972.26 | ||
| Name | Related party | Amount at year end | Amount at year beginning |
| Other payable | Shenzhen Xinfang Knitting Co., Ltd. | 244,789.85 | 244,789.85 |
| Other payable | Shenzhen Changlianfa Printing and dyeing Co., Ltd. | 1,178,449.95 | 1,178,449.95 |
| Other payable | Shenzhen Haohao Property Leasing Co., Ltd. | 4,454,489.85 | 4,104,489.85 |
| Other payable | Yehui International Co.,Ltd. | 1,145,111.18 | 1,135,399.49 |
| Other payable | Shengbo （Hongkong）Co., Ltd. | 315,000.00 | 315,000.00 |
| Interest payable | Shenzhen Shenchao Technology Investment Co., Ltd. | 46,643,162.06 | 45,570,662.08 |
| Total amount of various equity instruments granted by the company during the current period | 0.00 |
| Total amount of various equity instruments that the company exercises during the period | 0.00 |
| Total amount of various equity instruments that have expired in the current period | 0.00 |
| The scope of executive price of the company’s other equity instruments at the end of the period and the remaining term of the contract | The company issued 4,752,300 restricted stocks at the end of the period, and the grant price was 5.73 yuan/share. Restrictions shall be lifted at the rate of 40%, 30%, and 30% respectively after 12 months, 24 months, and 36 months after the first transaction date of 24 months after the completion of the registration. The period of validity of the entire plan shall not exceed 60 months from the date of granting the restricted stock to the date on which the restricted stocks granted to the incentive object are all released from restrictions on sale or cancelled by repurchase. |
The third restriction lifting period
In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than the 75 fractileslevel of comparable listed companies in the same industry; the growth rate of operating revenue in 2020 is not lessthan 200% compared to 2016, and is not lower than the 75 fractiles level of comparable listed companies in thesame industry. In 2020, the proportion of optical film business such as polarizers to operating revenue will be noless than 80%.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
| Determination method of the fair value of equity instruments on the grant date | The closing price of the company's stock on grant date - grant price |
| Determination basis of the number of vesting equity instruments | On each balance sheet date of the waiting period, it is determined based on the latest information such as the change in the number of people that can be released from restrictions and the completion of performance indicators |
| The reasons for the significant difference between the current estimate and the previous estimate | Nil |
| Equity-settled share-based payment is included in the accumulated amount of capital reserve | 3,735,685.54 |
| Total amount of fees confirmed by equity-settled share-based payments in the current period | 4,277,070.00 |
XV. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Account receivables provided bad debt provision in credit risk groups | 575,125.08 | 100.00% | 28,756.25 | 5.00% | 546,368.83 | 473,196.00 | 100.00% | 23,659.79 | 5.00% | 449,536.21 |
| Total | 575,125.08 | 100.00% | 28,756.25 | 5.00% | 546,368.83 | 473,196.00 | 100.00% | 23,659.79 | 5.00% | 449,536.21 |
| Aging | Amount in year-end | ||
| Account reivable | Provision for bad debts | Proportion% | |
| Within item 1 year | |||
| Subtotal within 1 year | 575,125.08 | 28,756.25 | 5.00% |
| Total | 575,125.08 | 28,756.25 | 5.00% |
In RMB
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other Accounts receivable of individual significance and subject to individual impairment assessment | 13,781,464.60 | 49.99% | 13,781,464.60 | 92.28% | 13,781,464.60 | 67.70% | 13,781,464.60 | 100.00% | ||
| Other Accounts receivable subject to impairment assessment by credit risk characteristics of a portfolio | 13,477,375.01 | 48.88% | 840,876.78 | 5.63% | 12,636,498.23 | 6,262,767.01 | 30.77% | 480,146.38 | 7.67% | 5,782,620.63 |
| Other Accounts receivable of individual insignificance but subject to individual impairment assessment | 311,486.35 | 1.13% | 311,486.35 | 2.09% | 311,486.35 | 1.53% | 311,486.35 | 100.00% | ||
| Total | 27,570,325.96 | 100.00% | 14,933,827.73 | 12,636,498.23 | 20,355,717.96 | 100.00% | 14,573,097.33 | 5,782,620.63 | ||
| Other receivable （Unit） | Balance at year-end | |||
| Other receivable | Provision for bad debts | Proportion% | Reason | |
| Jiangxi Xuanli String Co., Ltd. | 11,389,044.60 | 11,389,044.60 | 100.00% | No executable property, unlikely to recover. |
| Anhui Huapeng Textile Co.,Ltd. | 1,800,000.00 | 1,800,000.00 | 100.00% | Estimated irrecoverable |
| Shenzhen Tianlong Induatry& Trade Co., Ltd. | 592,420.00 | 592,420.00 | 100.00% | Has been conceled, unlikely to recover |
| Total | 13,781,464.60 | 13,781,464.60 | -- | -- |
| Aging | Amount in year-end | ||
| Other receivable | Bad debt provision | Withdrawal proportion | |
| Subitem Within 1 year | |||
| Subtotal within 1 year | 12,208,426.23 | 610,421.31 | 5.00% |
| 1-2 years | 1,010,047.30 | 101,004.73 | 10.00% |
| Over 3 years | 258,901.48 | 129,450.74 | 50.00% |
| Total | 13,477,375.01 | 840,876.78 | |
| Name | Amount | Method |
| Category | Year-end balance | Year-beginning balance |
| Internal current account | 12,888,758.00 | 5,075,600.00 |
| Unit account | 14,607,817.96 | 15,206,367.96 |
| Other | 73,750.00 | 73,750.00 |
| Total | 27,570,325.96 | 20,355,717.96 |
(4)Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| First | Unit account | 12,575,600.00 | Over 1-2 years | 45.61% | 11,389,044.60 |
| Second | Unit account | 11,389,044.60 | Over 5 years | 41.31% | 712,800.00 |
| Third | Unit account | 1,800,000.00 | 1-2 years | 6.53% | 1,800,000.00 |
| Fourth | Unit account | 592,420.00 | Over 5 years | 2.15% | 592,420.00 |
| Fifth | Unit account | 575,125.08 | Within 1 year | 2.08% | 28,756.25 |
| Total | -- | 26,932,189.68 | -- | 14,523,020.85 |
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
| Investment to the subsidiary | 1,983,892,472.97 | 16,582,629.30 | 1,967,309,843.67 | 1,981,050,902.97 | 16,582,629.30 | 1,964,468,273.67 |
| Investment to joint ventures and associated enterprises | 20,519,573.38 | 0.00 | 20,519,573.38 | 20,380,734.56 | 20,380,734.56 | |
| Total | 2,004,412,046.35 | 16,582,629.30 | 1,987,829,417.05 | 2,001,431,637.53 | 16,582,629.30 | 1,984,849,008.23 |
| Name | Opening balance | Increase | Decrease | Closing balance | Withdrawn impairment provision in the reporting period | Closing balance of impairment provision |
| Shenzhen Shengbo Optoelectrionc Technology Co., Ltd. | 1,924,842,841.18 | 2,064,690.00 | 0.00 | 1,926,907,531.18 | 14,415,288.09 | |
| Shenzhen Lisi Industrial Development Co., | 8,080,587.80 | 86,400.00 | 8,166,987.80 |
| Ltd. | ||||||
| Shenzhen Beauty Centruty Garment Co., Ltd. | 30,895,388.23 | 335,880.00 | 31,231,268.23 | 2,167,341.21 | ||
| Shenzhen Huaqiang Hotal | 15,499,430.44 | 120,960.00 | 15,620,390.44 | |||
| Shenfang Property Management Co., Ltd. | 1,732,655.32 | 233,640.00 | 1,966,295.32 | |||
| Total | 1,981,050,902.97 | 2,841,570.00 | 1,983,892,472.97 | 16,582,629.30 |
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Haohao Property Leasing Co., Ltd | 5,369,450.56 | 393,860.77 | 400,000.00 | 5,363,311.33 | |||||||
| Subtotal | 5,369,450.56 | 393,860.77 | 400,000.00 | 5,363,311.33 | |||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Changlianfa Printing and dyeing Company | 2,107,155.01 | 96,088.63 | 2,203,243.64 | ||||||||
| Jordan Garnent Factory | 2,233,902.64 | -68,777.00 | 27,739.85 | 2,192,865.49 | |||||||
| Yehui | 10,670,2 | 195,773. | 92,609.3 | 198,456. | 10,760,1 | ||||||
| International Co., Ltd. | 26.35 | 27 | 0 | 00 | 52.92 | ||||||
| Subtotal | 15,011,284.00 | 223,084.90 | 120,349.15 | 198,456.00 | 15,156,262.05 | ||||||
| Total | 20,380,734.56 | 616,945.67 | 120,349.15 | 598,456.00 | 20,519,573.38 | 0.00 |
| Items | Amount of current period | Amount of previous period | ||
| Business income | Business cost | Business income | Business cost | |
| Income from Main Business | 31,576,065.65 | 5,166,425.81 | 30,244,081.73 | 4,477,749.55 |
| Other Business income | 1,767,833.77 | 1,767,833.77 | 1,605,516.30 | 1,605,516.29 |
| Total | 33,343,899.42 | 6,934,259.58 | 31,849,598.03 | 6,083,265.84 |
| Items | Amount of current period | Amount of previous period |
| Income from long-term equity investment measured by adopting the Equity method | 616,945.67 | 1,620,115.63 |
| Investment income received from holding of available-for –sale financial assets | 574,774.15 | 526,586.44 |
| Total | 1,191,719.82 | 2,146,702.07 |
| Items | Amount | Notes |
| Non-current asset disposal gain/loss | -43,338.08 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 5,812,167.76 |
| Gain/loss on entrusting others with investment or asset managemen | 28,152,710.15 | |
| Other non-business income and expenditures other than the above | -20,094.83 | |
| Less :Influenced amount of income tax | 231,421.06 | |
| Influenced amount of minor shareholders’ equity (after tax) | 13,205,732.87 | |
| Total | 20,464,291.07 | -- |
| Profit of report period | Weightedaverage retureon eqiuty(%) | Earningspershare | |
| Basicearningspershare(RMB/share） | Diluted eqrnings per share(RMB/share) | ||
| Net profit attributable to the Common stock shareholders of Company. | 0.40% | 0.02 | 0.02 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | -0.45% | -0.0212 | -0.0212 |
XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financialcontroller;
2.The originals of all the Company’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period.3. Other relevant information
The above documents were completely placed at the Office of Secretaries of the Board of Directors of theCompany.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 29, 2018