Stock code: 000045 , 200045 Stock Abbreviation: Shen Textile A , Shen Textile B Announcement No.: 2018-47
Shenzhen Textile (Holdings) Co., Ltd.
The Third Quarterly Report 2018
1 Important NoticeThe Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
All the directors attended the board meeting for reviewing the Quarterly Report.
Mr.Zhu Jun, Person in charge of the Company, Mr. Zhu Meizhu, Chief financial officer and the Ms. Mu Linying ,the person in charge of the accounting department (the person in charge of the accounting )hereby confirm theauthenticity and completeness of the financial report enclosed in this Quarterly Report .
This Report has been prepared in both Chinese and English , In case any discrepancy , the Chinese version shallprevail.
II. Basic information about the company
I.Main financial data and financial indexIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
| As at the end of the reporting period | As at the end of last year | Changed （%）over end of prev. year | ||||
| Gross assets（Yuan） | 4,509,489,610.40 | 4,195,746,507.56 | 7.48% | |||
| Net assets attributable to the shareholders of the listed company（Yuan） | 2,413,288,148.00 | 2,397,474,603.79 | 0.66% | |||
| Reporting period | Increase/decrease over the same period of last year（%） | Between beginning of the year to the end of the report period | Changed （%）over end of prev. year | |||
| Operating income（Yuan） | 533,270,021.40 | 61.11% | 1,071,558,072.01 | 0.11% | ||
| Net profit attributable to the shareholders of the listed company（Yuan） | 2,621,782.96 | -86.37% | 12,268,759.11 | -63.59% | ||
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | -7,620,712.88 | -172.87% | -18,438,027.80 | -398.72% | ||
| Cash flow generated by business operation, net（Yuan） | -- | -- | -398,788,741.04 | -87.30% | ||
| Basic earning per share(Yuan/Share) | 0.005 | -87.50% | 0.024 | -63.91% | ||
| Diluted gains per share(Yuan/Share) | 0.005 | -87.50% | 0.024 | -63.91% | ||
| Weighted average income/asset ratio（%） | 0.11% | -0.70% | 0.51% | -0.92% | ||
Items and amount of non-current gains and losses
√ Applicable □ Not applicable
In RMB yuan
| Items | Amount (Year-beginning to the end of the report period.) | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -43,439.68 |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 9,092,751.66 | |
| Gain/loss on entrusting others with investment or asset management | 40,885,414.42 | |
| Other non-business income and expenditures other than the above | 1,196,557.78 | |
| Less :Influenced amount of income tax | 48,598.77 | |
| Influenced amount of minor shareholders’ equity (after tax) | 20,375,898.50 | |
| Total | 30,706,786.91 | -- |
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition inthe Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to thePublic-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the saidexplanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recoveredand the Shares Held by Top Ten Common Shareholders
In shares
| Total number of common shareholders at the period-end | 36,053 | Total preference shareholders with the voting power recovered at the end of the reporting period(if any) | 0 | |||||
| Shares held by the top 10 shareholders | ||||||||
| Shareholder name | Properties of shareholder | Share proportion % | Quantity | Amount of tradable shares with Conditional held | Pledging or freezing | |||
| Status of the shares | Quantity | |||||||
| Shenzhen Investment Holdings Co., Ltd. | State-owned legal person | 45.78% | 234,069,436 | |||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | State-owned Legal person | 3.15% | 16,129,032 | |||||
| Fujiang Bairui | Domestic Non- | 0.77% | 3,954,735 | |||||
| Jiayuan, Asset Management Co., Ltd.－Bairui Jiayuan Growth I Fund | State-owned Legal person | |||||
| Sun Huiming | Domestic Nature person | 0.62% | 3,192,767 | |||
| Li Songqiang | Domestic Nature person | 0.56% | 2,873,078 | |||
| Zheng Junsheng | Domestic Nature person | 0.36% | 1,830,000 | |||
| Kuang Guowei | Domestic Nature person | 0.27% | 1,387,900 | |||
| Zhu Ye | Domestic Nature person | 0.22% | 1,131,945 | |||
| Deng Hua | Domestic Nature person | 0.21% | 1,051,404 | |||
| Hong Fan | Domestic Nature person | 0.20% | 1,028,900 | |||
| 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 domestic exchange | 3,192,767 | |||
| Li Songqiang | 2,873,078 | RMB Common shares | 2,873,078 | |||
| Zheng Junsheng | 1,830,000 | RMB Common shares | 1,830,000 | |||
| Kuang Guowei | 1,387,900 | RMB Common shares | 1,387,900 | |||
| 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 shareholders participating in the margin trading business | 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. | ||
| Participation of top 10 unconditional common share shareholders in securities margin trading (if any) | 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 Zhu Ye holds1,031,945 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. | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end ofthe report period
□ Applicable √Not applicable
III Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, aswell as reasons for the changes
√ Applicable □ Not applicable
1. The closing balance of Notes receivable is RMB 138.0842 million, increased by 71.73% compared with thebeginning of the year, Mainly due to the increase in the production of the No. 6 line project of the second phase ofthe polarizer and the increase in import and export trade business;2.The closing balance of advance payment is RMB315.0868 million, increassed by 2290.68% compared with thebeginning of the year, Mainly due to the increase in advances in import and export trade during the period;3.The closing balance of Fixed assets is RMB351.128 million, increassed by 53.51% compared with the
beginning of the year, mainly due to the carry-over of fixed assets in the current phase II of the TFT-LCD
polarizer；
4.The closing balance of construction in process is RMB314.2584 million, Decreased by 97.42% compared withthe beginning of the year, mainly due to the carry-over of fixed assets in the current phase II of the TFT-LCDpolarizer;5. The closing balance of Other non-current assets is RMB129.2055 million, increased by 273.93% comparedwith the beginning of the year, Mainly due to the payment of technical service fees;6. The closing balance of Short-term borrowing is RMB300.4261 million, increased by 338.94% compared withthe beginning of the year, Mainly due to the addition of short-term bank loans;7. The closing balance of Advance Payments is RMB20.1201 million, increased by 57.56% compared with thebeginning of the year, Mainly due to the increase in advances in export trade;8. The closing balance of Non-current liabilities due within one year is RMB40 million, decreased by 100%compared with the beginning of the year, Mainly due to the return of the loan;9. The closing balance of Adminisstrative expenses is RMB26.0883 million, Increased by 38.45% compared withthe beginning of the year, Mainly due to the increase in research and development expenses and share paymentexpenses for the current period;
10. Financial expenses in current period increased by RMB16.70 million and 75.73% year on year，Mainly due to
the increase in short-term borrowings in the current period, which led to an increase in interest expenses. Theappreciation of the Japanese yen led to an increase in exchange losses;11. The net cash flows from operating activities in current period decreased by RMB185.8809 million and 87.31%
year on year，Mainly due to the increase in advances in trade activities;
12. The net cash flows from investment activities in current period increased by RMB27.6183 million and
158.88% year on year，Mainly due to the redemption of the entrusted financial management due in the current
period;13. The net cash flows from financing activities in current period increased by RMB252.1144 million and
13,976.67% year on year，Mainly due to the increase in short-term loans in the current period.
II. The progress of significant events and influence, as well as the analysis and explanation on resolvingproposal.
√ 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 second phase project of the No.6 line project has been transferred to the fixedasset and entered the mass production stage, the project invested by the raised funds has been basically finished,so the company will deposit the RMB 134,717,200 from the left raised funds into the original specific account forraised funds for the subsequent expenditures of No.6 Line project, and use the rest left RMB 403.0727 million
(The specific amount is subject to the bank’s settlement on the day the funds are transferred)of the raised funds for
the ultra-large-size TV polarizer industrialization project (Line 7). The above matter have been reviewed and
approved by the Company's second provisional shareholders’ meeting of 2018. For details, please refer to theCompany’s announcements of No. 2018-34 and No. 2018-41.
(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 RMB 50 million. Shengbo Optoelectronic Co.,Ltd, as one of the limited partners of the industrial fund, subscribed for a capital contribution of RMB 28.5
million .For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2017--55).
On February 10, 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 |
(III) Progress in construction of Guanhua Building
During the reporting period, the Company has completed the open-tender rental scheme of Guanhua Buildingand is currently promoting the open-tender rental work of Guanhua Building. Meanwhile, the completion andsettlement work of the Guanhua Building has been sped up, as well as the real estate license has been handledmore quickly.
(IV) Progress of Nitto Denko's Technical Cooperation Contract
In order to introduce the world's leading Japanese polarizer company technology, we will build a wide-widthpolarizer production line project for TFT-LCD with a width of 2,500mm. Shengbo Optoelectronic will introducethe East Japan with Jinjiang Group and Kunshan Chi Mei on November 6, 2017. The related matters of the2,500mm polarizer production line technology of the electrician and Nitto Denko signed the "TechnicalCooperation Contract". For details, please refer to http://www.cninfo.com.cn "About Subsidiary Signing theAnnouncement of Technical Cooperation Contracts (2017-53). In the normal implementation of the TechnicalCooperation Contract, the company has communicated with Nitto Denko on the schedule, plant planning anddesign, equipment specification parameters of the No. 7 line project. The company originally disclosed that itintends to cooperate with professional investment 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 Shengbo Optoelectronic Co., Ltd as the main construction investment construction No.
7 line project. After the establishment of the “project company”, the company will inherit the responsibility of
Shengbo Optoelectronic Co., Ltd in the Technical Cooperation Contract and pay the relevant technology licensingfees. Currently, due to the immaturity of the establishment of the 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. At present, the "Technical Cooperation Contract" is in normal performance.(V) Progress in construction of No. 7 line project
As of the date of disclosure of this report, The No.7 Line project prepared to construct by the Company,namely the ultra-large-size TV polarizer industrialization project (Line 7), has been reviewed and approved at the13th meeting of the 7th Board of Directors and at the 2nd Provisional General Meeting of 2018. For details, please
refer to the Company’s announcements of No. 2018-33 and No. 2018-41. The company has been actively carrying
out the work including the planning and applying-for-construction of the No. 7 line project, the biddingprocurement of the host equipment and the environmental impact assessment approval of the project.
（VI）Progress of the company's capital increase and share expansion to introduce strategic investorsOn June 1, 2018, the company held the twelfth meeting of the seventh board of directors, in which the “Proposal
about via capital increase and share-expanding to introduce strategic investors by the Company’sSubsidiary-Shenzhen Shengbo Optoelectronic Technology Co., Ltd.” was reviewed and approved, and agreed that
the subsidiary Shengbo Optoelectronic Co., Ltd. can publicly solicit no more than 5 strategic investors on theShenzhen United Assets and Equity Exchange according to the regulations on state-owned assets and based on theassets appraisal results recorded, and upon that finalize the strategic investors via competitive negotiations. Atpresent, the company is communicating with the state-owned assets management department and some potentialinvestors. Yet, there is still some uncertainty in this matter, and investors are advised to pay attention to theinvestment risks. The company will further fulfill the corresponding review procedures and information disclosureobligations according to the progress of the matter.
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer,directors, supervisors, senior executives or other related parties in the reporting period and commitmentsunfinished in implementation at the end of the reporting period
□ Applicable √ Not applicable
The company has no commitments completed in period and those without completed till lend of the period fromactual controller, shareholders, related parties, purchaser and companies.
IV. Anticipation of Business Performance of 2018Alert of loss or significant change in net profit from the beginning of year to the end of next report period orcomparing with the same period of last year, and statement of causations.
□ Applicable √ Not applicable
V. Investment in securities
□ Applicable √ Not applicable
No securities investment in period.VI. Entrusted Financial Management
√ Applicable □ Not applicable
Unit :Ten thousand yuan
| Type | Source | Amount | Unexpired balance | Overdue amount |
| Bank financing product | Self fund | 8,000 | 0 | 0 |
| Trust financing product | Self fund | 80,000 | 60,000 | 0 |
| Bank financing product | Raise funds | 50,000 | 0 | 0 |
| Total | 138,000 | 60,000 | 0 | |
Specific Circumstance of Trust Investment which is Large in single amount, low insecurity, poor in liquidity or
unguaranteed in high risk
√ Applicable □ Not applicable
Unit :Ten thousand yuan
| Name of | Type of Trustee | Product Type | Amount | Capital Source | Start Date | Expiry Date | Funds Allocati | Method of | Reference | Expected | Actual profit | The actual recovery of | Amount of | Whether | Whether there | Summary of |
| Trustee Organization (or Trustee Name) | Organization(or Trustee) | on | Reward Determination | Annualized Rate of Return | Income (if any) | and loss during the reporting period | profit and loss during the reporting period | provision for impairment (if any) | passed the statutory procedure | is any entrusted financial plan in the future | events and related search index (if any) | |||||
| Wanxiang Trust Co., Ltd. | Trust | Designated Use Business Management Funding Trust | 40,000 | Self fund | January 13,2018 | December 28,2018 | Trust financial products | Quarterly interest balance | 7.50% | 2,860.27 | Unexpired | Yes | Not applicable | Http://www.cninfo.com.cn: (Announcement No. 2018-04) | ||
| Wanxiang Trust Co., Ltd. | Trust | Designated Use Business Management Funding Trust | 40,000 | Self fund | February 17,2017 | December 16,2018 | Trust financial products | Quarterly interest balance | 7.50% | 5,058.33 | 2,242.41 | Redemption part of the Trust,200 million yuan ,and recovery 22.42 million as the profit | Yes | Not applicable | Http://www.cninfo.com.cn: (Announcement No. 2017-26) | |
| Total | 80,000 | -- | -- | -- | -- | -- | -- | 7,918.6 | 2,242.41 | -- | 0 | -- | -- | -- | ||
Entrusted financing appears to be unable to recover the principal or there may be other circumstances thatmay result in impairment
□ Applicable √ Not applicable
VII. Investment in derivatives
□ Applicable √Not applicable
There is no derivative investment during the report period.VIII. The registration form of acceptance of investigation, communication and interview in the report
period for future reference
□ Applicable √ Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.
IX. External guarantee get out of line
□ Applicable √Not applicable
The Company has no external guarantee get out of the line in the PeriodX. Controlling shareholder and its related parties occupying non-business capital of the listed company
□ Applicable √Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed companyin Period
The Director of Board of Shenzhen Textile (Holdings) Co., Ltd.October 30, 2018