Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2019
August 2019
I. Important Notice, Table of Contents and DefinitionsThe Board of Directors，the Supervisory Committee, the directors, the supervisors, and executives of theCompany 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, the Person in Charge of the Accounting Works, Ms. Di Yan,Chief Financial Officer and Ms. Mu Linying, the Person in Charge of the Accounting Department (the person incharge of accounting) hereby confirm the authenticity and completeness of the financial report enclosed in thesemi-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 areadvised to pay attention to investment risks. For details, please refer to the possible risk factors that the companymay 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 themedia 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. |
| Line 6 | Refers to | TFT-LCD polarizer II phase Line 6 project |
| Line 7 | Refers to | Industrialization project of polaroid for super large size TV |
| “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 | The Semi-annual Report 2019 |
II. Basic Information of the Company and Financial Index
Ⅰ.Company Information
| Stock abbreviation | Shen Textile A ,Shen Textile B | Stock code： | 000045,200045 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name in Chinese | 深圳市纺织(集团)股份有限公司 | ||
| Chinese abbreviation (If any) | 深纺织 | ||
| English name (If any) | SHENZHEN TEXTILE (HOLDINGS)CO.,LTD | ||
| English abbreviation (If any) | STHC | ||
| Legal Representative | Zhu Jun | ||
| 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 |
None of the official presses, website, and place of enquiry has been changed in the semi report period. For detailsplease find the Annual Report 2018.
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） | 1,008,863,295.50 | 474,262,408.57 | 112.72% |
| Net profit attributable to the shareholders of the listed company（RMB） | 7,832,287.98 | 9,646,976.15 | -18.81% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | -10,548,582.20 | -10,817,314.92 | 2.48% |
| Cash flow generated by business operation, net（RMB） | 23,826,362.35 | -128,850,889.44 | 118.49% |
| Basic earning per share(RMB/Share) | 0.0153 | 0.0190 | -19.47% |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.0153 | 0.0190 | -19.47% |
| Weighted average ROE(%) | 0.32% | 0.40% | -0.08% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Total assets（RMB） | 4,384,396,778.74 | 4,619,203,416.79 | -5.08% |
| Net assets attributable to shareholder of listed company（RMB） | 2,580,594,659.88 | 2,373,329,991.86 | 8.73% |
VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 12,236,686.25 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 11,035,139.06 | |
| Other non-business income and expenditures other than the above | 4,241,169.03 | |
| Less :Influenced amount of income tax | 3,121,789.28 | |
| Influenced amount of minor shareholders’ equity (after tax) | 6,010,334.88 | |
| Total | 18,380,870.18 | -- |
III. Business ProfileⅠ.Main Business the Company is Engaged in During the Report PeriodWhether the company needs to comply with the disclosure requirements of the particular industryNo(I) The company's main businessThe 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 onmany fields. The company’s five existing production lines of polarizer with mass production have productscovered the fields such as TN, STN, TFT, OLED, 3D, dye plate, optical film for touch screen, and the productsmainly used in TV, NB, navigator, monitor, automotive, industrial control, instrumentation, smart phones,wearable devices, 3D glasses, sunglasses and so forth products, The company expands its sales channels andbuilds its own brand by constantly strengthening its sales channels.becoming the qualified supplier to HuaxingOptoelectronic, BOE, Ivo, Shenchao Optoelectronic ,LGD ,Tianma,and so forth panel companies.During the reporting period, the company’s business is introduced as follows:
Firstly, the Company, driven by innovation, is committed to improving product quality and optimizing productstructure continuously. The Company actively promotes LGD, Huike, BOE, Sharp and other key customersthrough the transformation of production line equipment, sustained optimization of process, continuousadjustment of product structure, acceleration of market development and product promotion; Secondly, theCompany sets out to explore alternative import routes of raw materials, and strengthen independent intellectualproperty R&D. The Company continues to develop new products, actively carries out evaluation of new materials,focuses on the reduction of raw materials, and promotes the introduction of new materials; Thirdly, theconstruction of polarizer industrialization project (Line 7) for oversize televisions is advanced. Line 7 has enteredthe stage of comprehensive construction, and has obtained all kinds of permits required for construction at thisstage. The company will continue to strengthen the monitoring and management of budget, progress and quality,and strive to ensure that all work is completed in accordance with the plan; Fourthly, the management of propertyenterprises is strengthened. The quality of property and hotel services is improved in order to actively respond tothe adverse impact of the real economy downturn on property leasing. The leasing situation is stable, showing asteady upward trend. Fifthly, the textile industry continues to make up deficits. Despite the adverse factors such asthe recession of the industry, the rise of raw materials and labor costs, the number of customers' orders hasrebounded in traditional textile business during the reporting period. Sixthly, the Company pays attention to safetyproduction and environmental protection, concentrates on rectifying and investigating safety and environmentalprotection issues, advances the construction of safety information technology, promotes the safe and stabledevelopment of enterprises and actively fulfills social responsibility.(II) Operation modelThe priority of the polarizer industry is gradually shifting from the conventional research &development-production-sales business model to the customer-oriented business model of joint research &
development and full service. The Company reduces production links and costs and creates value for customersand a win-win situation through cooperation by deeply understanding customers' needs, making high-qualityproducts through joint research & development and high-standard production management and using advancedpolarizer rolling and attaching equipment in conjunction with downstream panel manufacturers' production lines.(III) Major performance driversRefer to "III. Analysis on core competitiveness" in this section for details.Relying on more than 20 years of industrial operation experience and regional advantages, the Company willdeepen the mixed-ownership reform work and strengthen strategic cooperation. To be specific, the Company willfurther promote its production technology and business management standards through integration of resources inthe polarizer and optical film industries; meanwhile, the Company will seize the opportunity and spare no effort topush forward the construction of an ultra-wide polarizer production line to occupy the highly lucrative jumboLCD TV polarizer product market; in addition to working on the polarizer industry, the Company will make aleaping development towards the optical film industry related with flat panel display to make SAPO a bigger andstronger enterprise.Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | No major changes |
| Fixed assets | No major changes |
| Intangible assets | No major changes |
| Construction in process | At the end of the period, the Construction in process increased by RMB 79.3717 million compared with the beginning of the period, an increased of508.10%, Mainly due to the current investment of Line 7 project. |
sunglasses, and optical film for touch screens, etc., We have proprietary technology for polarizers and newintellectual property rights for various new products. By the end of the reporting period, SAPO has applied for 94patents in total (66 licensed), including 26 national invention patents (8 licensed), 61 national utility model patents(54 licensed), 1 international invention patent (0 licensed) and 6 international utility model patents (4 licensed).SAPO studied and formulated 4 national standards and 2 industrial standards which have been adopted and putinto practice. SAPO has two technical platforms--"Shenzhen Polarizing Materials and Technology EngineeringLab" and "Shenzhen Municipal Research and Development Center" where focus is given to research &development and industrialization of key LCD polarizer production techniques, research & development andindustrialization of new OLED polarizer products and research on localization of polarizer production materials.Through the introduction of various types of sophisticated testing equipments to perfect the test means ofsmall-scale test and medium-scale test, further by improving the incentive system of research and developmentand 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.
Equipped with a polarizer management team and senior technical personnel team with strong technical ability,long cooperation, rich experience and international vision, the Company has built its own property rights systemand technical team. In order to grasp the development opportunities of oversize polarizer business in China,construct super-wide polarizer production line as soon as possible, seize the market opportunities and realizeeconomies of scale, SAPO jointly with Kunshan Zhiqimei and Jinjiang Group entered into a Contract of TechnicalCooperation with Nitto Denko Corporation, a world-class polarizer manufacturer on matters pertaining tointroduction of techniques of 2,500 mm polarizer production line on November, 2017. Nitto Denko owns leadingproduction and manufacturing technology of polarizers in the industry. SAPO establishes technical cooperationrelations with Nitto Denko, through which the Company has learnt advanced polarizer production andmanagement idea. At the same time, the Company improves his core competitiveness, and gradually accumulatethe advantages of the brand, technology, operation management and others through the accumulation ofindependent innovation technology experience and establishes a scientific and technological progress andmanagement innovation through the distribution of perfecting examination system and incentive system toprioritize salary incentive toward the core backbone of management, research and development and to give fullplay to the subjective initiative and creativity.
(3) Market advantages.
The company has a good market customer base at home and abroad. Compared with foreign advancedcounterparts, the biggest advantage lies in localization, close to panel market and strong support of nationalpolicies. In terms of market demand, with the construction and planning of Generation 10.5/Generation 11 andadvanced generation TFT - LCD panel production line production in succession, the production capacity ofadvanced generation TFT-LCD panels will increase considerably in the next few years in mainland China, and thecorresponding domestic market demand for polarizers will also grow. The domestic market is the most importantmarket for polarizer manufacturers, especially the large-scale polarizer market, which will usher in importantindustry opportunities in mainland China; When it comes to market development, focused on customers' needs,the Company will keep optimizing its production process and product structure, tighten quality control and wellbind production and sales together, build a quick response mechanism, give full play to its local strengths, takeadvantage of all the techniques and talents accumulated, provide good point-to-point professional services,promote the verification of all types of machinery concerning the overall strategic deployment and form a stablesupply chain to increase its 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, standardized incoming inspection standard,to achieve simultaneous improvement in output and quality by improving quality and reducingconsumption.through the introduction of a modern quality management system, the products have passedISO9001 Quality Management System and ISO14001 Environmental Management System, OHSAS18000Occupational Health and Safety Management System, QCO80000 System Certification; the product is tested bySGS and meets the environmental protection ,The company had increased the automatic detecting and markingequipments in the beginning section and the ending section, strictly controlled the product quality and improvedthe product utilization rate and product management efficiency.
(5) Management advantages.
The Company has been deeply cultivating the industry for more than 20 years and has accumulated richmanagement experience in the production of polarizer. It has the most advanced polarizer production managementprocess control system, quality management system and stable raw material supply channels. The Company hascarried out comprehensive benchmarking work, organized managers to learn advanced experience from customersand peers, vigorously implemented standardized management, refined management process, learned from foreignpolarizer business management experience, optimized the Company's organizational structure, reducedmanagement levels, and further improved the Company's management efficiency. After introduction of strategicinvestors, the Company learns from others' strong points and close the gap through the reform of mixed ownershipsystem, absorb the vitality of private enterprises, continues to implement advanced management system andreasonable incentive mechanism, improves decision-making efficiency, speeds up market reaction, perfects R&Dincentive system, and realizes the value of enterprises and employees , learn from each other's strengths and makeup for the weaknesses, absorb the vitality of private enterprises, continues to the in-depth integration of the valueof the company and employees, and stimulates new vitality in business.
(6) Policy advantages.
Polarizer is seen as an essential part of the panel display industry and SAPO in its development has promoted thesupply capacity of national polarizers, greatly lowered the dependence of national panel enterprises on importedpolarizers, and safeguarded the national panel industry, which serves as a good facilitator to enhancing the overallcompetitiveness of China's panel industry chain and coordinated development of the whole industry chain of thepanel display industry cluster in Shenzhen. Recognized as a national high-tech enterprise, SAPO is entitled to thepreferential policy for duty-free import of own productive raw materials that cannot be produced at home andfrequently gained national, provincial and municipal policy and financial support in its polarizer projects.Meanwhile, SAPO tightened supplier management, improved its overall purchasing strategy, and downsizedsuppliers while introducing a competitive mechanism, wherein focus was given to introduction of new materials ata competitive price, to further lower its production cost and improve its product competitiveness.
IV. Performance Discussion and Analysis
Ⅰ.GeneralIn the first half of 2019, the Company insisted on developing the polarizer industry, focusing on the main business,improving its profitability, accelerating the construction of the Line 7 project of polarizer, and further deepeningthe reform of mixed ownership. Firstly, the Company continuously improves the production and operationcapacity of polarizer by improving product quality, optimizing product structure, actively exploring the marketand exploring the substitution of raw materials. Meanwhile, centering on the target of reducing losses andincreasing profits, the Company takes various measures to promote management optimization. Secondly, theCompany makes every effort to build the industrialization project of super-large polarizer for TV (Line 7) in orderto grasp the development opportunities of domestic super-large polarizer business; Thirdly, the Company strivesto improve the plight of textile and garment business and actively promotes the introduction of strategic investorsintroduced by Shenzhen Beauty Century Co., Ltd., a subsidiary company; Fourthly, the capital increase and shareexpansion and open leasing to Guanhua Company are completed to realize lease income. At the same time,improve the level of property services, property leasing steadily increased; Fifthly, the main responsibility ofsafety production is implemented to achieve the safe development of the company.During the reporting period, the Company realized the operating income of RMB 1008.8633 million, representingan increase of RMB534.6009 million or 112.72% over the same period of last year; the total profit was RMB 4.0462million, representing a decrease of RMB5.8338 million or 59.05% over the same period last year; the net profit ofshareholders attributable to listed companies was RMB 7.833 million, which was RMB 1.8147 million lower thanthat of the same period last year and 18.81% lower than that of the same period last year. The Company's businessincome has increased considerably compared with the same period last year. The main reasons are as follows: Onethe one hand, TFT-LCD Phase II Line 6 was put into operation in the second half of 2018, its production capacitywas released in the current year, and its sales volume increased year on year; One the other hand, the import tradebusiness that has paid in advance for equipment in 2018 was completed in this reporting period, while the tradebusiness was less in the same period last year. During the reporting period, the net profit attributable toshareholders of listed companies decreased slightly compared with the same period last year. The reason is thatthe price of main polarizer products has been maintained at a low level since the sharp decline in 2018 and theaverage price of polarizer products has decreased compared with the same period last year, offsetting thecontribution of the rising sales volume to net profit.Reviewing the first half of 2019, the company focused on the key work, with contents as follows:
(I) Various measures to enhance the profitability and R&D capability of polarizer businessDuring the reporting period, firstly, the Company continued to optimize production process and improve productquality and continued to improve production capacity and reduce losses through measures such as equipmenttransformation of Line 4 and speed increase of Line 6. After the relocation of Line 1-3, equipment assembly,linkage test and fine adjustment were completed rapidly. Secondly, the Company optimized the product structureand actively developed the product market. The Company continuously adjusted the product structure, reduced theproportion of negative gross margin products orders, gave priority to high gross margin orders, speeded up marketdevelopment and product import and actively promoted key customers such as LGD, HKC, BOE, Sharp, etc. inorder to enhance the overall profitability; Thirdly, the Company continued to do a good job in R&D innovationand to explore alternative import of raw materials. During the reporting period, the Company continued to develop
new products, increased product performance improvement, carried out new material evaluation and introduction,and put emphasis on price reduction of major raw materials.Meanwhile, the research and development of independent intellectual property rights was strengthened. TheCompany applied for 3 patents (inventions) and 7 patents were granted authorization notices. The two nationalstandards "Measurement of Optical Compensation Value for Polarizers" and "Test Method of Adhesion of OpticalFilm Coatings for Polarizers" researched and developed by the Company have been formally implemented.Relying on two technical platforms--"Shenzhen Polarizing Materials and Technology Engineering Lab" and"Municipal Research and Development Center", the Company focuses on research & development andindustrialization of key LCD polarizer production techniques, research & development and industrialization ofnew OLED polarizer products and research on localization of polarizer production materials. In addition, theCompany actively expands investment in R&D funds, horizontally explores the innovative development of matureproducts, and enhances the sustainable development ability of enterprises.(II) Actively promote the construction of Line 7 projectLine 7 project has entered the stage of comprehensive construction, and has obtained all kinds of permits requiredfor construction at this stage. The project construction team of the Company has arranged construction milestone,striving to complete the work on time and with high quality. The Company will further strengthen the monitoringand management of budget, schedule and quality in the process of project construction, and actively promotetechnical exchanges with Nitto Denko and Kunshan Zhiqimei to promote the research and development of rawmaterials for Line 7 project. The leadership of the Company led a team to visit the major raw materialmanufacturers in Japan and conducted business cooperations based on the friendly consultation and negotiation,basically determining the supply source of the main raw material, and solving the supply problem of the rawmaterial for matching polarizer production of Line 7 by 2020.(III) The textile industry has continued to make up deficits and other enterprises showed a steady upward trendDuring the reporting period, Despite the adverse factors such as the recession of the industry, the rise of rawmaterials and labor costs, the number of customers' orders in traditional textile business has rebounded during thereporting period. The Company actively promoted the introduction of strategic investors introduced by Shenzhen
Beauty Century Garment Co., Ltd., a subsidiary company.(IV) Complete the capital increase of Guanhua Company and strengthen the management of property enterprises,showing a steady rise in property rental income.During the reporting period, the Company increased its capital and shares by the same proportion with the realassets of Guanhua Building in order to improve the contribution obligation of both the shareholders of theCompany and Qiaohui Textile Industrial Co., Ltd. to Shenzhen Guanhua Printing & Dyeing Co., Ltd. After thecapital increase, the registered capital of Guanhua Company increased from RMB 10 million to RMB 109.5517million. In June, Guanhua Company completed the overall external lease of Guanhua Building, and has received atotal of RMB 10.2032 million in rental deposit and first quarter rent from the lessee. In addition, other propertyenterprises have strengthened management, and improved the quality of property and hotel services to activelyovercome the pressure brought by the downturn of the real economy on property leasing. The leasing situation isstable, showing a steady upward trend.(V) Attach importance to safety in production and take preventive measures, so as to promote the safedevelopment of enterprisesDuring the reporting period, the Company firstly implemented the responsibility system for production safety andimplemented the responsibility for production safety to individuals; Secondly, the Company focused oninvestigation and centralized rectification of potential safety hazards. The Company inspected the on-site safetyproblems of the affiliated enterprises without notification, issued the rectification notice of potential safety hazards
and problems in time, and required them to complete the rectification. In the meantime, the Company putemphasis on the construction safety of Line 7 project, carried out special safety hazard investigation at theconstruction site, and organized safety warning education and training at the site. Thirdly, the Company activelycarried out the monthly activities of safe production, timely completed the information input and maintenance ofthe information platform, and promoted the construction of safety information.(VI) Constant reinforcement of foundation and strengthening of grass-roots party constructionFirstly, the Company should conscientiously carry out various forms of activities such as theoretical study of thecentral group and "Three Meeting and One Class", and conduct in-depth special education activities of "remaintrue to our original aspiration and keep our mission firmly in mind" according to the work deployment of the PartyCommittee at higher level; Secondly, the Company should strengthen organizational construction and completethe centralized change of Party organizations directly under the unified requirements of the OrganizationalDepartment of the CPC Shenzhen Municipal Committee. Thirdly, the Company should conscientiously fulfill theresponsibility of supervising the construction of a clean and honest Party conduct, strengthen the study of honesteducation and build a strong ideological defense line of honesty and self-discipline; Fourthly, the Company shouldstrengthen the system learning and training, fulfill the responsibility of discipline supervision and accountability,strengthen supervision and inspection, and strengthen restraint; Fifthly, the Company should conscientiously do agood job in the election of the trade union of the Company, strengthen the enterprise culture, and conscientiouslycarry out the work of maintaining the stability by letters and visits to escort the development of the Company.II.Main business analysisRefer 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 | 1,008,863,295.50 | 474,262,408.57 | 112.72% | TFT-LCD Phase II Line 6 was put into production in the second half of 2018. The production capacity was released in the same year, with a year-on-year increase on sales volume. |
| Operating cost | 940,587,510.73 | 415,092,958.33 | 126.60% | The reason is the same as income growth |
| Sale expenses | 7,369,804.52 | 3,780,411.53 | 94.95% | Due to increase in sales volume, transportation costs and insurance premiums |
| Administrative expenses | 42,901,879.68 | 41,239,119.73 | 4.03% | |
| Financial expenses | -730,687.94 | -3,852,587.66 | -81.03% | Exchange losses increases due to changes |
in yen exchange rateduring the reportingperiod
| in yen exchange rate during the reporting period | ||||
| Income tax expenses | 9,773,007.83 | 5,321,864.53 | 83.64% | The total profits of the parent company increases compared with last year, and the income tax expenses increases |
| R & D Investment | 19,172,388.20 | 21,189,099.82 | -9.52% | |
| Cash flow generated by business operation, net | 23,826,362.35 | -128,850,889.44 | 118.49% | During the reporting period, the trade receivables of the previous year are recovered |
| Net cash flow generated by investment | -450,772,543.46 | -81,631,016.04 | -452.20% | Investment in structural deposits increased during the reporting period |
| Net cash flow generated by financing | -451,630,120.04 | 64,472,159.75 | -800.50% | Repayment of some loans during the reporting period |
| Net increasing of cash and cash equivalents | -878,027,966.87 | -146,504,345.47 | -499.32% |
| 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 (%) | |
| On Industry | ||||||
| Domestic and foreign trade | 312,992,303.03 | 292,353,664.49 | 6.59% | 263.62% | 252.48% | 2.95% |
| Manufacturing | 643,643,001.98 | 634,053,045.67 | 1.49% | 89.86% | 100.04% | -5.01% |
| Lease and Management of Property | 49,680,246.62 | 12,107,999.95 | 75.63% | 7.23% | -4.50% | 2.99% |
On Products
| On Products | ||||||
| Lease and Management of Property | 49,680,246.62 | 12,107,999.95 | 75.63% | 7.23% | -4.50% | 3.00% |
| Textile | 14,570,178.44 | 13,501,836.05 | 7.33% | 11.80% | 12.22% | -0.36% |
| Polarizer sheet | 629,072,823.54 | 620,551,209.62 | 1.35% | 92.98% | 103.50% | -5.10% |
| Trade | 312,992,303.03 | 292,353,664.49 | 6.59% | 263.62% | 252.48% | 2.95% |
| Area | ||||||
| Domestic | 906,630,915.11 | 840,558,592.67 | 7.29% | 170.34% | 201.05% | -9.45% |
| Overseas | 99,684,636.52 | 97,956,117.44 | 1.73% | -26.73% | -26.55% | -0.23% |
| Amount | Ratio to the total profit amount (%) | Notes of the causes | Recurring or not | |
| Investment income | -206,057.55 | -5.09% | Obtaining dividends and contract fees from shareholding enterprises | The dividends and contract fees of shareholding enterprises are sustainable |
| Impairment of assets | -21,259,451.35 | -525.42% | Mainly from the loss of inventory depreciation | Have the sustainability |
| Non-operating income | 4,247,261.65 | 104.97% | Mainly for insurance claims | Not sustainable. |
| Non-operating expense | 6,092.62 | 0.15% | Mainly for fines imposed to the subsidiary Huaqiang Hotel for failing to register passenger information as required | Not sustainable. |
| Other income | 11,035,139.06 | 272.73% | Mainly for government subsidies. | Have the sustainability |
| End of Reporting period | End of same period of last year | Change in percentag | Reason for significant change |
Amount
| Amount | As a percentage of total assets(%) | Amount | As a percentage of total assets(%) | e(%) | ||
| Monetary fund | 419,227,198.60 | 9.56% | 1,141,759,374.60 | 24.72% | -15.16% | The decrease in monetary funds is mainly due to the repayment of loans, the purchase of structural deposits and the construction expenditure of polaroid line 7 during the reporting period |
| Accounts receivable | 497,053,241.57 | 11.34% | 528,454,015.59 | 11.44% | -0.10% | |
| Inventories | 515,163,535.57 | 11.75% | 439,752,718.77 | 9.52% | 2.23% | Due to the increase in the production of semi-finished products and the purchase of raw materials after the mass production of polaroid line 6 during the reporting period. |
| Real estate Investment | 116,195,160.90 | 2.65% | 167,997,941.98 | 3.64% | -0.99% | In this period, investment real estate is used to increase investment in Shenzhen Guanhua Printing and Dyeing Co., Ltd. |
| Long-term equity investment | 163,733,127.58 | 3.73% | 32,952,085.66 | 0.71% | 3.02% | In this period, the investment in Shenzhen Guanhua Printing & Dyeing Co., Ltd is increased. |
| Fixed assets | 934,236,253.12 | 21.31% | 987,876,247.55 | 21.39% | -0.08% | |
| Construction in process | 94,993,015.59 | 2.17% | 15,621,286.64 | 0.34% | 1.83% | During the reporting period, the investment in the construction of polaroid line 7 increases the total amount of projects under construction |
| Short-term loans | 50,837,730.76 | 1.16% | 411,522,111.40 | 8.91% | -7.75% | Mainly due to repayment of loans during the reporting period |
| Item | Amount at year beginning | Gain/loss on fair value change in the | Cumulative fair value change recorded into | Impairment provisions in the reporting | Purchased amount in the reporting | Sold amount in the reporting period | Amount at year end |
reportingperiod
| reporting period | equity | period | period | ||||
| Financial assets | |||||||
| 1. Financial assets measured at fair value through profit or loss (excluding derivative financial assets) | 540,000,000.00 | 220,000,000.00 | 760,000,000.00 | ||||
| 4．Other equity Instrument Investment | 241,875,289.00 | 1,324,824.96 | 0.00 | 432,981.70 | 242,767,132.26 | ||
| Total | 751,875,289.00 | 1,324,824.96 | 220,000,000.00 | 432,981.70 | 982,767,132.26 | ||
| Financial Liability | 0.00 | 0.00 | |||||
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.VI. Sales of major assets and equityI. 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
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 | 36,137,041.66 | 29,575,452.50 | 4,229,606.92 | 1,628,282.94 | 1,515,900.43 |
| Shenzhen Huaqiang Hotel | Subsidiary | Accommodation, business center; | 10,005,300.00 | 31,663,743.07 | 24,879,458.86 | 5,817,048.14 | 2,628,730.59 | 1,965,959.06 |
| Shenfang Property | Subsidiary | Property management | 1,600,400.00 | 10,922,887.40 | 3,608,334.07 | 4,586,273.73 | 166,816.05 | 125,112.04 |
ManagementCo., Ltd.
| Management Co., Ltd. | ||||||||
| Shenzhen Beauty Century Garment Co., Ltd. | Subsidiary | Production of fully electronic jacquard knitting whole shape | 13,000,000.00 | 40,795,568.28 | 15,818,003.39 | 16,592,600.12 | 354,431.70 | 354,431.70 |
| Shenzhen Shengbo Opotoelectric Technology Co., Ltd | Subsidiary | Production and sales of polarizer | 583,333,333. 00 | 3,155,732,205.84 | 2,658,228,650.07 | 893,168,312.79 | -39,315,700.76 | -35,069,023.71 |
| Shenzhen Shenfang Import & export Co., Ltd. | Subsidiary | Operating import and export business | 5,000,000.00 | 93,687,670.23 | 17,038,780.57 | 50,530,860.98 | 1,122,602.88 | 823,590.07 |
| Shengtou（HK）Co., Ltd. | Subsidiary | Sales of polarizer | HKD10,000 | 8,345,323.75 | 5,852,805.88 | 37,702,978.62 | 347,578.98 | 347,578.98 |
Fourthly, it will make clear the direction of investment in infrastructure and maintain overall economic stability.Under the background of the introduction of science and technology innovation board and the long-term game ofSino-US trade frictions, the state proposes to implement the strategy of "manufacturing power", encourages coretechnology to be autonomous and controllable and to realize import substitution. As an important part of theelectronic information industry, the industry where the Company lies in will be strongly supported by nationalpolicies, but it can not be ruled out that unpredictable macroeconomic fluctuations may cause risks to theCompany's performance.Response measure: The company will pay close attention to and study the trend of industry policy, strengthen thetracking and analysis of important information in the industry, and timely grasp the development trend of theindustry. At the same time, the company will continue to optimize product structure, increase market developmentcapabilities, stimulate personnel vitality, and strengthen internal management, control business risks to ensurethe company’s steady development.
2. Competitive risk in the market
Polarizer industry is an important part of China's future manufacturing industry and the demand for display panelsand the development of relevant technologies are changing with each passing day. The process of domesticsubstitution of polarizer industry is in progress. With the gradual mass production of Generation 10.5 Line, themarket for super-large size will encounter with new changes. If the Company's technology and products fail torespond to the demand of application field, wide polarizer products and applications are not developed asexpected, or the intensification of market competition leads to the price decline of display products and thepressure of price reduction in the polarizer market, negative impacts will be caused inevitably on the Company.Response measure: On the one hand, the Company builds the Line 7 project in an all-round way as planned,actively promotes the introduction of new product clients, enhances the bargaining power of products andstabilizes customers' confidence; On the other hand, the Company taps market potential, enhances market share,continuously enhances the yield of production lines and operation ratio, and improves the competitiveness ofproducts to cope with market risks.
3. Risk of raw material
The core patents of polarizer terminal materials have high technical barriers and are basically monopolized byforeign manufacturers. Thus, patents are the main reason for limiting the localization of luminescent materials.Currently, the key raw materials for manufacturing polarizers, PVA film and TAC film, are basically monopolizedby Japanese companies and the production line and production technology of upstream supporting raw materialsare constrained by the Japanese side. Compared with the international manufacturer's complete industrial chainmodel from upstream raw materials to polarizers to display panels, the Company does not have the correspondingcomplete industrial support to play the role in industrial integration while the price of major membrane materialsis affected by the supplier's production capacity, market demand and the yen exchange rate, which influences theunit cost of the Company's products.Response measure: The company will further strengthen its independent intellectual property R&D, promote theintroduction of low-cost raw materials, actively explore the import substitution of raw materials, while increasingoperation ratio and maintaining a low level of production loss rate, maintaining production stability and continuity,and reducing production costs; If necessary, the company may choose to lock the forward exchange rate to avoidexcessive exchange loss caused by the sharp fluctuation of exchange rate.
V. Important EventsI. 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 General Meeting of 2018 | Annual General Meeting | 49.00% | June 26,2019 | June 27,2019 | Announcement No.2019-30 www.cninfo.com.cn |
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Period 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 | August 4, 2006 | Sustained and effective | Under Fulfillment |
Companies” and the provisions of the relevant business principles ofShenzhen Stock Exchange.
| Companies” and the provisions of the relevant business principles of Shenzhen Stock Exchange. | ||||||
| Commitment in the acquisition report or the report on equity changes | ||||||
| Commitment made upon the assets replacement | ||||||
| Commitments made upon issuance | 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 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. | October 9, 2009 | Sustained and effective | Under Fulfillment |
| 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 | July 14, 2012 | Sustained and effective | Under Fulfillment |
and its share-holding subsidiaries or other enterprises owned the actualcontrol rights in the future, Shenzhen Investment Holdings will promotethe related enterprises to avoid the inter-industry competition throughthe transfer of equity, assets, business and other ways. 4. Abovecommitments will be continuously effective and irrevocable duringShenzhen Investment Holdings as the controlling shareholder ofShenzhen Textile or indirectly controlling Shenzhen Textile.
| 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. | ||||||
| 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 commitments 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 | |||||
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Legal mattersSignificant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
No such cases in the reporting period.XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√Applicable□ Not applicable
(I) Formulation of Restricted Stock Incentive PlanOn November 27, 2017, the Proposal on the Company's Implementation Measures of Evaluation for the 2017Restricted Stock Incentive Plan (Draft) and summary and the Proposal on the Company's ImplementationMeasures of Evaluation for the 2017 Restricted Stock Incentive Plan was examined and approved in the 7
thboardmeeting of the company’s 7
thsession board of directors, and related proposals agreed to fulfill the relevantprocedures and related proposals agreed to fulfill the relevant proceduresOn December 11, 2017, the SASAC agreed in principle to implement the restricted stock incentive plan.On December 14, 2017, the company held the third extraordinary shareholders' general meeting in 2017, whichreviewed and approved the Proposal on the Company's Implementation Measures of Evaluation for the 2017Restricted Stock Incentive Plan (Draft) and summary and Proposal on the Company's Implementation Measures ofEvaluation for the 2017 Restricted Stock Incentive Plan and other issues.(II) Information on granting the restricted stockOn December 14, 2017, the company held the 8th meeting of the 7th Board of Directors, which reviewed and
approved the “Proposal on Adjusting the List of Incentive Objects and Granting Quantity of the 2017 RestrictedStock Incentive Plan” and the “Proposal on Granting the Restricted Stocks to Incentive Objects”. The restrictedshares actually granted by this stock incentive plan totaled 4,752,300 shares, and 119 incentive objects were granted,with the granting price was 5.73 yuan per share.On December 27, 2017, the company’s restricted stock completed the grant registration formalities at ChinaSecurities Depository and Clearing Corporation Shenzhen Branch.(III) Implementation of restricted stocksIn view of the fact that the Company's performance appraisal in 2018 fails to meet the conditions for the firstcancellation of the restricted stock incentive plan, and that three motivators leave their jobs for personal reasons,according to the relevant provisions of the company's Restricted Stock Incentive Plan in 2017, the Company willrepurchase and cancel 116 restricted stocks held by the incentive objects that did not meet the conditions forlifting the restriction on sale in the first phase, totaling 1,877,720 shares, with a repurchase price of RMB 5.92yuan/share; Repurchase the restricted shares that have been granted to three former motivators who resigned forpersonal reasons but have not yet been lifted on sale restrictions, totaling 58,000 shares at a repurchase price ofRMB 5.73 per share. A total of 1,935,720 restricted shares have been granted but have not been lifted. After thecancellation of this repurchase, the total equity of the company will be reduced from 511,274,149 shares to509,338,429 shares. The Company held the 19th meeting of the 7th Board of Directors on June 4, 2019, and heldthe 2018 Annual General Meeting of Shareholders on June 26, 2019, and reviewed and approved the Proposal onRepurchasing Partially Restricted Stocks. The details are shown in the Announcement on Repurchasing PartiallyRestricted Stocks Disclosed by the Company on June 5, 2019 and June 27, 2019 on http://www.cninfo.com.cn(2019-No. 27), the Announcement of Resolutions of the 2018 Annual General Meeting of Shareholders (2019-No.30) and the Announcement on Reduction of Restricted Shares of Restricted Shares (2019-No. 31). This repurchaseand cancellation will continue to be implemented in accordance with legal procedures.XII. Material related transactions
1. 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 |
| Kunshan Zhiqimei Materials Technology Co., Ltd. | Jingjiang Group's shareholding company | Purchase of products from | Selling polarizing film | Market Principle | Agreement price | 5,847.93 | 9.67% | 20,880 | No | Transfer | 5,847.93 | April 27, 2019 | http://www.cninfo.com.cn On April 27,2019(Announcement |
relatedparties
| related parties | No.2019-19) | ||||||||||||
| Kunshan Zhiqimei Materials Technology Co., Ltd. | Jingjiang Group's shareholding company | Sale of goods to related parties | Purchase of optical film products and relevant materials | Market Principle | Agreement price | 7,910.83 | 12.58% | 21,996 | No | Transfer | 7,910.83 | April 27, 2019 | http://www.cninfo.com.cn On April 27,2019(Announcement No.2019-19) |
| Total | -- | -- | 13,758.76 | -- | 42,876 | -- | -- | -- | -- | -- | |||
| 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) | Normal performance | ||||||||||||
| Reason for any significant difference between the transaction price and the market reference price (if applicable) | Not applicable | ||||||||||||
| 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) |
ShenzhenDailishiUnderwearCo., Ltd.
| Shenzhen Dailishi Underwear Co., Ltd. | Sharing company | Contract fee | No | 41.64 | 50 | 91.64 | 0 | ||
| Anhui Huapeng Textile Co., Ltd. | Joint venture | Investment dividend | No | 180 | 180 | ||||
| Kunshan Zhiqimei Materials Technology Co., Ltd. | Jingjiang Group's shareholding company | Sale products | No | 8,406.26 | 10,750.95 | 10,431.66 | 8,725.55 | ||
| Shenzhen Tianma Microelectronics Co., Ltd. | The Chairman of the Company was Vice Chairman of the company | Sale products | No | 89.44 | 85.11 | 127.18 | 47.37 | ||
| Influence of the related rights of credit and liabilities upon the company’s operation results and financial position | In the report period, Increase investment income of RMB 500,000.. | ||||||||
| 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) |
| Kunshan Zhiqimei Materials Technology Co., Ltd. | Jingjiang Group's shareholding company | Purchase | 1,740.57 | 6,381.71 | 5,194.18 | 2,928.1 | ||
| Shenzhen Xinfang Knitting Co., Ltd. | Sharing company | Current amount | 24.48 | 24.48 | ||||
| Shenzhen Changlianfa Printing & dyeing | Sharing company | Current amount | 117.84 | 117.84 |
Co., Ltd.
| Co., Ltd. | ||||||||
| Shenzhen Haohao Property Leasing Co., Ltd | Sharing company | Current amount | 445.45 | 90 | 355.45 | |||
| Yehui International Co., Ltd. | Sharing company | Current amount | 119.01 | 0.37 | 119.48 | |||
| SAPO （HK）Co., Ltd. | Sharing company | Current amount | 31.5 | 31.5 | ||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | Controlled by the same party | Interest payable | 3,720.54 | 55 | 3,775.54 | 0 | ||
| Shenzhen Dailishi Underwear Co., Ltd. | Sharing company | Investment dividend | 0 | 8.56 | 8.56 | |||
| 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 550,000. | |||||||
loan is transferred to the account of the Company. The interest rate of the entrusted loan is the rate of commercialloans with a term of 5 years quoted by People's Bank of China minus 2%. In case of adjustment of suchcommercial loan rate, the rate of commercial loans with a term of 5 years after adjustment minus 2% shall applyas interest rate of entrusted loan from the first day of the next month after the adjustment of basic interest rate. Theterm of the loan is 108 months from the day when the first installment of entrusted loan is transferred to theaccount of the Company. As of June 30,2019, The Company has returned all principal and interest payable on theabove-mentioned entrusted loan with a balance of 0.
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 |
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 cooperation | November 6,2017 | No | Taking into account the market price, technical service period, etc., the final transaction price is based on the results of | 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 |
commercialnegotiationsbetweenthe twoparties.
commercialnegotiationsbetweenthe twoparties.
XV. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection departmentYes
| 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 | <100mg/m3 | 120mg/m3 | 840kg/d | 1728kg/d | No |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | Effluents：COD | Open channel discharge after treatment | 2 | Southeast side of plant area | <80mg/L | 90mg/L | 56kg/d | 96kg/d | No |
membrane wastewater treatment process. The wastewater treatment system will be expanded with the project ofline 6 in 2018 and put into use with the production equipment of line 6 in 2018. The equipment has the advantagesof stable operation, low energy consumption, low maintenance cost, high degree of automation, good wastewatertreatment effect and strong impact resistance. The waste water produced in the production process can meet theenvironmental protection requirements of standard discharge after being treated by waste water treatmentfacilities.Situation of Construction project environmental impact assessment and other environmental protectionadministrative licensesThe Company complied with relevant environmental protection regulations at such three stages as project design,construction and operation and obtained environmental protection approvals needed at each corresponding stageincluding EIA report, EIA approval, environmental protection acceptance decision and emission permit amongothers.Emergency Plan for Emergency Environmental IncidentsAccording to the actual situation of the company, the preparation of the emergency plan for emergencyenvironmental incidents was completed, and an emergency environmental emergency plan filing applicationEnvironmental Self-Monitoring ProgramSurveillance done subject to surveillance requirements made by the surveillance station and operation needs of allsystems of SAPO，the specific monitoring programs are as follows: organic exhaust gas is 8 times per year (2 perquarter), wastewater discharge is 4 times per year (once per quarter), boiler exhaust gas is 2 times per year (onceevery six months), and canteen fume is 2 times per year (once every six months), the noise at the plant boundaryis 2 times per year (once every six months).Other Environmental Information That Should Be DisclosedNilOther Environmental Related InformationNil
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in theperiodand bas no follow-up plan
either.XVI.Other material events
√ Applicable □Not applicable
（I）Progress of Guanhua Building
On February 28, 2019, the Company and Qiaohui Textile Industrial Co., Ltd. respectively accounted for
50.16% and 49.84% of the equity interest in the buildings of Guanhua Building, and increased capital to ShenzhenGuanhua Printing & Dyeing Co., Ltd. based on the corresponding evaluation value of RMB 49.9351 million andRMB 41.9666 million of the buildings of Guanhua Building in order to improve the contribution obligation ofshareholders of Shenzhen Guanhua Printing & Dyeing Co., Ltd. The Company signed the Shenzhen GuanhuaPrinting & Dyeing Co., Ltd. Capital Increase Agreement with Qiaohui Textile Industrial Co., Ltd. and ShenzhenGuanhua Printing and Dyeing Co., Ltd. After the completion of capital increase, Shenzhen Guanhua Printing &Dyeing Co., Ltd. is a enterprise jointly controlled by the Company and Qiaohui Textile Industrial Co., Ltd.
For details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2019--07).During the reporting period, Shenzhen Guanhua Printing & Dyeing Co., Ltd. has obtained the Real PropertyRegistration Certificate of Guanhua Building, and has completed the registration procedures for the change ofshareholding rights and the increase of registered capital; As the winning bidder determined by the first publiclease of Guanhua Building gave up the lease qualification, Guanhua Building re-issued the public listingannouncement on the Shenzhen United Property and Share Rights Exchange and determined the lessee in May2019. Currently, Guanhua Building has completed the overall external lease, and has received a total of RMB
10.2032 million in rental deposit and first quarter rent from the lessee.
(II) Progress on the investment and construction of the ultra-large-size TV polarizer industrialization project (Line7)During the reporting period, the Line 7 project has completed the signing of contracts for extensionmachines, AGV, pressure sensitive adhesive coating machine, wastewater treatment equipment, earthworks andpartial construction projects, some of which have completed payment in stages. The construction of Line 7 hascommenced on April 18, 2019, and is currently in the stage of building foundation construction. As of June 30,2019, the Line 7 project has actually paid RMB 42,292,250 (RMB 22,252,200 in raised funds, RMB 20,040,500in private funds and government funds).XVII. Material events of subsidiaries
√ Applicable □Not applicable
(I) Progress of the commitment for the compensation in 2018 Annual Performance of the subsidiary, SAPOIn order to give full play to the advantages of the system and mechanism of mixed ownership, seize favorablemarket opportunities and achieve the goal of strengthening and enlarging the main optical film industries such aspolarizer, the Company introduced a strategic investor, Jinjiang Group to sign the Cooperation Agreement at thelevel of SAPO at the end of 2016 and Jinjiang Group has made a three-year performance commitment to SAPOfor the sake of achieving better results in the cooperation after the introduction of strategic investors (in2017-2019). However, the cooperation effect is unsatisfactory. In 2018, SAPO realized a net profit of RMB97,268,700, with a net profit margin of RMB 19,268,700 from the performance commitment, ie. RMB 100 million.Jinjiang Group needs to make up for the net profit margin by cash according to the Cooperation Agreement.In view of Jinjiang Group's proposal to properly handle the issue of performance compensation throughconsultation based on the actual situation and fair and reasonable principle, Jinjiang Group temporarily fails tofulfill its performance commitment for compensation obligations under the Cooperation Agreement before the twosides reach an agreement. On April 27, 2019, the Company initiated negotiations with Jinjiang Group oncompensation for employment performance commitments after the disclosure of the Annual Report of 2018 andagreed to negotiate a compensation plan for the performance commitment compensation and implement thecorresponding decision-making procedures within three months from the date of disclosure of the Announcementon the Reply of the Shenzhen Stock Exchange's 2018 Annual Report Letter of Inquiry ( 2019-No. 23) by thecompany on May 29. If the two parties fail to reach an agreement within the agreed time, the Company will settlethe performance commitment compensation by arbitration according to the regulation of the CooperationAgreement.As of the disclosure date of this report, although both parties have made active efforts to resolve the issue ofperformance commitment compensation, no consensus has been reached on the compensation plan. The companyhas formally sent a letter to urge Jinjiang Group to fulfill its 2018 annual performance commitment compensationobligation in accordance with the Cooperation Agreement, make up the difference of 197,268,700 RMB in cash
and reach a compensation plan before the expiration of the negotiation period.(II) Progress in subsidiaries participating in the establishment of industrial fundsOn 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 as one of the limitedpartners 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--55).On February 10, 2018, Changxing Junying Equity Investment Partnership completed the industrial andcommercial registration and completed the private equity investment fund registration on February 8, 2018. Fordetails Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).As of June 30, 2019, 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 |
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. 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 | 4,829,550 | 0.94% | 4,829,550 | 0.94% | |||||
| 3.Other domestic shares | 4,829,550 | 0.94% | 4,829,550 | 0.94% | |||||
| Domestic Nature shares | 4,829,550 | 0.94% | 4,829,550 | 0.94% | |||||
| II.Shares with unconditional subscription | 506,444,599 | 99.06% | 506,444,599 | 99.06% | |||||
| 1.Common shares in RMB | 457,016,599 | 89.39% | 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% | |||||
Stock. On June 27, 2019, the company issued the Announcement on Reduction of Capital on Repurchase andCancellation of Some Restricted Stock (No.2019-31). The company will repurchase and cancel 116 restrictedstocks held by the incentive objects that did not meet the conditions for lifting the restriction on sale in the firstphase, totaling 1,877,720 shares, with a repurchase price of 5.92 yuan/share; Repurchase the restricted shares thathave been granted to 3 former incentive objects who resigned for personal reasons but have not yet been lifted onsale restrictions, totaling 58,000 shares at a repurchase price of 5.73 yuan per share. A total of 1,935,720 restrictedshares have been granted but have not been lifted. After the cancellation of this repurchase, the total equity of thecompany will be reduced from 511,274,149 shares to 509,338,429 shares.
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from securityregulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
Ⅱ.Issuing and listing
□ Applicable √Not applicable
III. Shareholders and shareholding
In Shares
| Total number of common shareholders at the end of the reporting period | 32,757 | 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 | State-owned | 45.78% | 234,069,436 | 0 | 0 | 234,069,436 | ||||
HoldingsCo., Ltd.
| Holdings Co., Ltd. | legal person | |||||||
| Shenzhen Shenchao Technology Investment Co., Ltd. | State-owned Legal person | 3.15% | 16,129,032 | 0 | 0 | 16,129,032 | ||
| Sun Huiming | Domestic Nature person | 0.63% | 3,224,767 | 32,000 | 0 | 3,224,767 | ||
| Zheng Junsheng | Domestic Nature person | 0.59% | 3,000,000 | 1,170,000 | 0 | 3,000,000 | ||
| Li Songqiang | Domestic Nature person | 0.56% | 2,873,078 | 0 | 2,873,078 | |||
| Chen Danzhen | Domestic Nature person | 0.39% | 2,013,001 | 2,013,001 | 0 | 2,013,001 | ||
| Kuang Guowei | Domestic Nature person | 0.28% | 1,453,600 | -3,400 | 0 | 1,453,600 | ||
| Hong Fan | Domestic Nature person | 0.27% | 1,384,900 | 356,000 | 0 | 1,384,900 | ||
| Li Zengmao | Domestic Nature person | 0.22% | 1,136,700 | 97,900 | 0 | 1,136,700 | ||
| Zhu Ye | Domestic Nature person | 0.22% | 1,134,145 | 2,200 | 0 | 1,134,145 | ||
| Related or | Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment | |||||||
acting-in-concertparties amongshareholders above
| acting-in-concert parties among shareholders above | 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 | Common shares in RMB | 234,069,436 |
| Shenzhen Shenchao Technology Investment Co., Ltd. | 16,129,032 | Common shares in RMB | 16,129,032 |
| Sun Huiming | 3,224,767 | Foreign shares in domestic market | 3,224,767 |
| Zheng Junsheng | 3,000,000 | Common shares in RMB | 3,000,000 |
| Li Songqiang | 2,873,078 | Common shares in RMB | 2,873,078 |
| Chen Danzhen | 2,013,001 | Common shares in RMB | 2,013,001 |
| Kuang Guowei | 1,453,600 | Common shares in RMB | 1,453,600 |
| Hong Fan | 1,384,900 | Common shares in RMB | 1,384,900 |
| Li Zengmao | 1,136,700 | Common shares in RMB | 1,136,700 |
| Zhu Ye | 1,134,145 | Common shares in RMB | 1,134,145 |
| Explanation on | Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment | ||
associatedrelationship orconsistent actionamong the top 10shareholders ofnon-restrictednegotiable sharesand that between thetop 10 shareholdersof non-restrictednegotiable sharesand top 10shareholders
| 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 | 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 Li Songqiang holds 2,872,653 shares of the Company through stock account with credit transaction ; The Company Shareholder Hong Fan holds 56,000 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. |
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
There was no change in shareholding of directors, supervisors and senior management staffs, for the specificinformation please refer to the 2018 Annual Report.II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Zou Zhiwei | Supervisor | Dimission | March 15,2019 | Job Change |
| Li Lei | Supervisor | Elected | June 26,2019 | Add |
IX. Corporate BondWhether the company has corporate bonds that have been publicly issued and listed on the stock exchange, andnot yet due or due but not folly cashed on the approval date of annual reportNo
X. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial StatementsStatement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
In RMB
| Items | June 30,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 419,227,198.60 | 1,141,759,374.60 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 760,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 31,079,249.92 | 886,432.06 |
| Account receivable | 497,053,241.57 | 528,454,015.59 |
| Financing of receivables | ||
| Prepayments | 134,533,314.88 | 229,028,791.15 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 14,566,106.22 | 14,846,896.50 |
| Including：Interest receivable | 7,067,282.69 | 5,589,704.44 |
Dividend receivable
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 515,163,535.57 | 439,752,718.77 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 89,787,160.89 | 639,797,959.30 |
| Total of current assets | 2,461,409,807.65 | 2,994,526,187.97 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Debt investment | ||
| Available for sale of financial assets | 45,373,784.87 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 163,733,127.58 | 32,952,085.66 |
| Other equity instruments investment | 242,767,132.26 | |
| Other non-current financial assets | ||
| Property investment | 116,195,160.90 | 167,997,941.98 |
| Fixed assets | 934,236,253.12 | 987,876,247.55 |
| Construction in progress | 94,993,015.59 | 15,621,286.64 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 37,191,323.92 | 37,880,815.85 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | 2,575,143.27 | 1,486,209.03 |
| Deferred income tax asset | 5,687,946.62 | 6,036,198.23 |
| Other non-current asset | 325,607,867.83 | 329,452,659.01 |
| Total of non-current assets | 1,922,986,971.09 | 1,624,677,228.82 |
| Total of assets | 4,384,396,778.74 | 4,619,203,416.79 |
| Current liabilities |
Short-term loans
| Short-term loans | 50,837,730.76 | 411,522,111.40 |
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 247,726,900.23 | 180,239,452.90 |
| Advance receipts | 25,426,190.80 | 120,702,951.37 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 24,381,210.07 | 32,506,267.08 |
| Tax payable | 16,505,455.32 | 7,745,128.99 |
| Other account payable | 171,137,964.42 | 229,015,279.98 |
| Including：Interest payable | 435,029.66 | 39,044,044.39 |
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract Liabilities | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 40,000,000.00 | |
| Other current liability | ||
| Total of current liability | 536,015,451.60 | 1,021,731,191.72 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | ||
| Bond payable | ||
| Including：preferred stock |
Sustainable debt
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 129,416,766.89 | 137,991,698.33 |
| Deferred income tax liability | 66,021,500.49 | |
| Other non-current liabilities | ||
| Total non-current liabilities | 195,438,267.38 | 137,991,698.33 |
| Total of liability | 731,453,718.98 | 1,159,722,890.05 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,865,716,983.63 | 1,865,716,983.63 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 200,771,588.45 | 1,339,208.41 |
| Special reserve | ||
| Surplus reserves | 80,004,803.23 | 80,004,803.23 |
| Common risk provision | ||
| Retained profit | -49,942,185.43 | -57,774,473.41 |
| Total of owner’s equity belong to the parent company | 2,580,594,659.88 | 2,373,329,991.86 |
| Minority shareholders’ equity | 1,072,348,399.88 | 1,086,150,534.88 |
| Total of owners’ equity | 3,652,943,059.76 | 3,459,480,526.74 |
| Total of liabilities and owners’ equity | 4,384,396,778.74 | 4,619,203,416.79 |
2. Balance sheet of Parent Company
I n RMB
| Items | June 30,2019 | December 31,2018 |
| Current asset： | ||
| Monetary fund | 29,536,528.73 | 85,416,567.74 |
| Transactional financial assets | 560,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 564,306.46 | 541,948.21 |
| Financing of receivables | ||
| Prepayments | 79,766.67 | 17,436.00 |
| Other account receivable | 15,141,009.58 | 13,856,382.02 |
| Including：Interest receivable | 6,737,221.93 | 4,974,799.47 |
| Dividend receivable | ||
| Inventories | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 500,000,000.00 | |
| Total of current assets | 605,321,611.44 | 599,832,333.97 |
| Non-current assets： | ||
| Debt investment | ||
| Available for sale of financial assets | 15,373,784.87 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 2,115,956,894.19 | 1,997,175,852.27 |
| Other equity instruments investment | 200,802,141.09 | |
| Other non-current financial assets | ||
| Property investment | 109,525,380.61 | 161,053,628.71 |
| Fixed assets | 25,697,052.23 | 26,565,399.91 |
Construction in progress
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 828,074.07 | 1,012,374.75 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 5,337,909.60 | 5,818,069.48 |
| Other non-current asset | ||
| Total of non-current assets | 2,458,147,451.79 | 2,206,999,109.99 |
| Total of assets | 3,063,469,063.23 | 2,806,831,443.96 |
| Current liabilities | ||
| Short-term loans | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 411,743.57 | 411,743.57 |
| Advance receipts | 639,024.58 | 639,024.58 |
| Contract Liabilities | ||
| Employees’ wage payable | 6,742,670.44 | 9,760,306.51 |
| Tax payable | 13,229,303.02 | 5,494,627.33 |
| Other account payable | 115,538,060.57 | 141,746,352.67 |
| Including：Interest payable | ||
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | ||
| Other current liability | ||
| Total of current liability | 136,560,802.18 | 158,052,054.66 |
| Non-current liabilities： | ||
| Long-term loan |
Bond payable
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | 650,000.00 | 700,000.00 |
| Deferred income tax liability | 63,030,252.70 | |
| Other non-current liabilities | ||
| Total non-current liabilities | 63,680,252.70 | 700,000.00 |
| Total of liability | 200,241,054.88 | 158,752,054.66 |
| Owners’ equity | ||
| Share capital | 511,274,149.00 | 511,274,149.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,599,025,454.96 | 1,599,025,454.96 |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 |
| Other comprehensive income | 191,797,845.07 | 1,339,208.41 |
| Special reserve | ||
| Surplus reserves | 80,004,803.23 | 80,004,803.23 |
| Retained profit | 508,356,435.09 | 483,666,452.70 |
| Total of owners’ equity | 2,863,228,008.35 | 2,648,079,389.30 |
| Total of liabilities and owners’ equity | 3,063,469,063.23 | 2,806,831,443.96 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 1,008,863,295.50 | 474,262,408.57 |
| Incl：Business income | 1,008,863,295.50 | 474,262,408.57 |
| Interest income | ||
| Insurance fee earned |
Fee and commission received
| Fee and commission received | ||
| II. Total business cost | 1,013,198,391.97 | 481,289,557.87 |
| Incl：Business cost | 940,587,510.73 | 415,092,958.33 |
| 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 | 3,897,496.78 | 3,840,556.12 |
| Sales expense | 7,369,804.52 | 3,780,411.53 |
| Administrative expense | 42,901,879.68 | 41,239,119.73 |
| R & D expense | 19,172,388.20 | 21,189,099.82 |
| Financial expenses | -730,687.94 | -3,852,587.66 |
| Including：Interest expense | 3,783,883.97 | 3,428,083.94 |
| Interest income | -15,744,104.66 | -13,277,267.58 |
| Add：Other income | 11,035,139.06 | 5,812,167.76 |
| Investment gain（“-”for loss） | -206,057.55 | 28,552,710.15 |
| Including: investment gains from affiliates | -1,114,057.55 | 616,945.67 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | 2,333,764.98 | |
| Impairment loss of assets | -21,259,451.35 | -17,394,332.04 |
| Assets disposal income | 12,236,686.25 | |
| III. Operational profit（“-”for loss） | -195,015.08 | 9,943,396.57 |
| Add ：Non-operational income | 4,247,261.65 | 89,905.17 |
| Less: Non-operating expense | 6,092.62 | 153,338.08 |
| IV. Total profit(“-”for loss) | 4,046,153.95 | 9,879,963.66 |
| Less：Income tax expenses | 9,773,007.83 | 5,321,864.53 |
| V. Net profit | -5,726,853.88 | 4,558,099.13 |
(I) Classification by businesscontinuity
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | -5,726,853.88 | 4,558,099.13 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 7,832,287.98 | 9,646,976.15 |
| 2.Minority shareholders’ equity | -13,559,141.86 | -5,088,877.02 |
| VI. Net after-tax of other comprehensive income | 52,056,251.94 | -389,767.67 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 52,056,251.94 | -389,767.67 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 51,249,010.40 | |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | 51,249,010.40 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 807,241.54 | -389,767.67 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair v | -510,116.82 |
alue available for sale financial assets
| alue available for sale financial assets | ||
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8. Translation differences in currency financial statements | 807,241.54 | 120,349.15 |
| 9.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | 46,329,398.06 | 4,168,331.46 |
| Total comprehensive income attributable to the owner of the parent company | 59,888,539.92 | 9,257,208.48 |
| Total comprehensive income attributable minority shareholders | -13,559,141.86 | -5,088,877.02 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.0153 | 0.0190 |
| (II)Diluted earnings per share | 0.0153 | 0.0190 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 34,593,508.28 | 33,343,899.42 |
| Incl：Business cost | 5,929,735.08 | 6,934,259.58 |
Business tax and surcharge
| Business tax and surcharge | 1,412,933.65 | 1,458,413.46 |
| Sales expense | ||
| Administrative expense | 16,206,040.37 | 14,436,569.89 |
| R & D expense | ||
| Financial expenses | -10,132,086.89 | -7,833,271.26 |
| Including：Interest expenses | ||
| Interest income | -9,924,921.96 | -7,845,669.84 |
| Add：Other income | 50,000.00 | 50,000.00 |
| Investment gain（“-”for loss） | -206,057.55 | 1,191,719.82 |
| Including: investment gains from affiliates | -1,114,057.55 | 616,945.67 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | 23,970.35 | |
| Impairment loss of assets | -365,826.86 | |
| Assets disposal income | 12,301,144.92 | |
| II. Operational profit（“-”for loss） | 33,345,943.79 | 19,223,820.71 |
| Add ：Non-operational income | 79,604.02 | |
| Less：Non -operational expenses | ||
| III. Total profit(“-”for loss) | 33,345,943.79 | 19,303,424.73 |
| Less：Income tax expenses | 8,655,961.40 | 4,209,259.73 |
| IV. Net profit | 24,689,982.39 | 15,094,165.00 |
| 1.Net continuing operating profit | 24,689,982.39 | 15,094,165.00 |
| 2.Termination of operating net profit | ||
| V. Net after-tax of other comprehensive income | 52,056,251.94 | -389,767.67 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | 51,249,010.40 | |
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under th |
e equity method investee can not be reclassified into profit or loss.
| e equity method investee can not be reclassified into profit or loss. | ||
| 3. Changes in the fair value of investments in other equity instruments | 51,249,010.40 | |
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 807,241.54 | -389,767.67 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3. Gains and losses from changes in fair value available for sale financial assets | -510,116.82 | |
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8. Translation differences in currency financial statements | 807,241.54 | 120,349.15 |
| 9.Other | ||
| VI. Total comprehensive income | 76,746,234.33 | 14,704,397.33 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
Items
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 999,946,160.35 | 510,486,141.19 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 9,977,371.04 | 24,120,883.81 |
| Other cash received from business operation | 29,115,913.92 | 26,160,799.70 |
| Sub-total of cash inflow | 1,039,039,445.31 | 560,767,824.70 |
| Cash paid for purchasing of merchandise and services | 884,541,697.70 | 560,096,998.00 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend |
Cash paid to staffs or paid for staffs
| Cash paid to staffs or paid for staffs | 82,695,671.17 | 76,371,093.88 |
| Taxes paid | 15,981,651.90 | 27,570,325.99 |
| Other cash paid for business activities | 31,994,062.19 | 25,580,296.27 |
| Sub-total of cash outflow from business activities | 1,015,213,082.96 | 689,618,714.14 |
| Net cash generated from /used in operating activities | 23,826,362.35 | -128,850,889.44 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | 2,513,730.75 | 1,673,214.15 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 6,200.00 | 26,597.81 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 620,264,450.94 | 1,903,828,974.66 |
| Sub-total of cash inflow due to investment activities | 622,784,381.69 | 1,905,528,786.62 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 88,061,134.28 | 156,659,802.66 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | 0.00 | |
| Other cash paid for investment activities | 985,495,790.87 | 1,830,500,000.00 |
| Sub-total of cash outflow due to investment activities | 1,073,556,925.15 | 1,987,159,802.66 |
| Net cash flow generated by investment | -450,772,543.46 | -81,631,016.04 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 81,566,681.47 | 275,474,786.49 |
| Cash received from bond placing |
Other financing –related cash received
| Other financing –related cash received | ||
| Sub-total of cash inflow from financing activities | 81,566,681.47 | 275,474,786.49 |
| Cash to repay debts | 479,551,062.11 | 209,562,972.59 |
| Cash paid as dividend, profit, or interests | 42,197,297.00 | 1,439,654.15 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 11,448,442.40 | |
| Sub-total of cash outflow due to financing activities | 533,196,801.51 | 211,002,626.74 |
| Net cash flow generated by financing | -451,630,120.04 | 64,472,159.75 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 548,334.28 | -494,599.74 |
| V.Net increase of cash and cash equivalents | -878,027,966.87 | -146,504,345.47 |
| Add: balance of cash and cash equivalents at the beginning of term | 1,133,574,235.22 | 1,161,240,139.33 |
| VI ..Balance of cash and cash equivalents at the end of term | 255,546,268.35 | 1,014,735,793.86 |
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 35,598,741.25 | 34,341,479.70 |
| Tax returned | ||
| Other cash received from business operation | 4,798,306.72 | 6,186,752.60 |
| Sub-total of cash inflow | 40,397,047.97 | 40,528,232.30 |
| Cash paid for purchasing of merchandise and services | 1,795,145.94 | 2,734,504.18 |
| Cash paid to staffs or paid for staffs | 11,643,989.59 | 10,002,845.66 |
| Taxes paid | 10,101,259.32 | 7,067,139.21 |
| Other cash paid for business activities | 24,376,996.84 | 12,230,536.71 |
| Sub-total of cash outflow from business | 47,917,391.69 | 32,035,025.76 |
activities
| activities | ||
| Net cash generated from /used in operating activities | -7,520,343.72 | 8,493,206.54 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 12,000,000.00 | |
| Cash received as investment gains | 2,513,730.75 | 1,673,214.15 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 24,597.81 | |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 8,629,426.36 | 763,589.50 |
| Sub-total of cash inflow due to investment activities | 23,143,157.11 | 2,461,401.46 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 54,410.00 | 1,545,005.70 |
| Cash paid as investment | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 60,000,000.00 | 40,000,000.00 |
| Sub-total of cash outflow due to investment activities | 60,054,410.00 | 41,545,005.70 |
| Net cash flow generated by investment | -36,911,252.89 | -39,083,604.24 |
| 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 | 11,448,442.40 |
Sub-total of cash outflow due tofinancing activities
| Sub-total of cash outflow due to financing activities | 11,448,442.40 | |
| Net cash flow generated by financing | -11,448,442.40 | |
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -55,880,039.01 | -30,590,397.70 |
| Add: balance of cash and cash equivalents at the beginning of term | 85,416,567.74 | 413,700,327.95 |
| VI ..Balance of cash and cash equivalents at the end of term | 29,536,528.73 | 383,109,930.25 |
| Items | Semi-annual of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capita | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 1,339,208.41 | 80,004,803.23 | -57,774,473.41 | 2,373,329,991.86 | 1,086,150,534.88 | 3,459,480,526.74 | ||||||
| Add: Change of accounting policy | 147,376,128.10 | 147,376,128.10 | 147,376,128.10 | ||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 148,715,336.51 | 80,004,803.23 | -57,774,473.41 | 2,520,706,119.96 | 1,086,150,534.88 | 3,606,856,654.84 | ||||||
III.Changed inthe current year
| III.Changed in the current year | 52,056,251.94 | 7,832,287.98 | 59,888,539.92 | -13,802,135.00 | 46,086,404.92 | ||||||||||
| （1）Total comprehensive income | 52,056,251.94 | 7,832,287.98 | 59,888,539.92 | -13,802,135.00 | 46,086,404.92 | ||||||||||
| （II）Investment or decreasing of capital by owners | |||||||||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （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 surplusreserves (or tocapital shares)
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | |||||||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 200,771,588.45 | 80,004,803.23 | -49,942,185.43 | 2,580,594,659.88 | 1,072,348,399.88 | 3,652,943,059.76 |
| Items | Semi-annual of 2018 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capita | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred | Sustainabl | Other | |||||||||||||
stock
| stock | e debt | Income | |||||||||||||
| 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 | 2,397,474,603.79 | 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 | 2,397,474,603.79 | 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 | 12,708,402.48 | -4,263,001.02 | 8,445,401.46 | |||||||||
| （1）Total comprehensive income | -389,767.67 | 9,646,976.15 | 9,257,208.48 | -4,263,001.02 | 4,994,207.46 | ||||||||||
| （II）Investment or decreasing of capital by owners | 3,451,194.00 | 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 | 3,451,194.00 |
4．Other
| 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.Change amount of defined benefit plans that carry forward Retained earnings | |||||||||||||||
| 5．Other comprehensive income carry-over retained earnings |
6．Other
| 6．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 | 2,410,183,006.27 | 1,121,281,524.77 | 3,531,464,531.04 |
| Items | Semi-annual of 2019 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 1,339,208.41 | 80,004,803.23 | 483,666,452.70 | 2,648,079,389.30 | |||||
| Add: Change of accounting policy | 138,402,384.72 | 138,402,384.72 | ||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II.Balance at the beginning of current year | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 139,741,593.13 | 80,004,803.23 | 483,666,452.70 | 2,786,481,774.02 | |||||
| III.Changed in the current year | 52,056,251.94 | 24,689,982.39 | 76,746,234.33 | |||||||||
| （I）Total comprehensive income | 52,056,251.94 | 24,689,982.39 | 76,746,234.33 | |||||||||
(II) Investmentor decreasing ofcapital byowners
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 1．Ordinary Shares invested by shareholders | ||||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | ||||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | ||||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of |
defined benefitplans that carryforwardRetainedearnings
| defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this term | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 191,797,845.07 | 80,004,803.23 | 508,356,435.09 | 2,863,228,008.35 |
| Items | Semi-annual of 2018 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 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 atthe beginningof current year
| 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 surplusreserves (or tocapital shares)
| of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2．Used this term | ||||||||||||
| （VI）Other | ||||||||||||
| IV. Balance at the end of this term | 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 |
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and marketing ofpolarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen andreserved high-class textile and garment business.
3. Approval of the financial statements reported
The financial statements have been authorized for issuance of the 20th meeting of the Seventh Board of Directorsof the Group on August 19,2019.As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi Industrial Development Co.,Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property Management Co., Ltd. Shenzhen Beaufity GarmentsCo., Ltd. ,Shzhen Shenfang Import & Export Co., Ltd., and Shengtou (Hongkong) Co., Ltd.The scope of consolidated financial statements this period did not change.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 actualtransactions and matters, Accounting Standard for Business Enterprises--Basic Standard(issued by No.33 Decreeof the Ministry of Finance and revised by No.76 Decree of the Ministry of Finance) issued by the Ministry ofFinance, 42 special accounting standards enacted and revised on and after Feb 15, 2006, guideline for applicationof accounting standard for business enterprises, ASBE interpretations and other relevant regulations(hereinaftercollectively referred to as “Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules forInformation Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports(revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will causematerial doubts as to the continuation capability of the Company.V. Important accounting policies and estimationsSpecific accounting policies and accounting estimates tips:
According to the actual production and operation characteristics, the company has formulated specific accountingpolicies and accounting estimates for such transactions or events as provision for bad debts of receivables,depreciation of fixed assets, amortization of intangible assets, and revenue recognition.
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate accountingstandards. They truly and completely reflect the financial situations, operating results, equity changes and cashflow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as thefiscal year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of assets forprocessing until. Less than 1 year is for the normal operating cycle in the company.With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities repaid atmaturity within one year as of the balance sheet date shall be classified into the current assets or the currentliabilities.
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 the combination date,obtains control of another enterprise participating in the combination is the absorbing party, while that otherenterprise participating in the combination is a party being absorbed. Combination date is the date on which theabsorbing party effectively obtains control of the party being absorbed.The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise beingcombined at the combination date. The difference between the carrying amount of the net assets obtained and thecarrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted tothe capital premium in the capital reserve. If the balance of the capital premium is insufficient, any excess isadjusted to retained earnings.The cost of a combination incurred by the absorbing party includes any costs directly attributable to thecombination shall be recognized as an expense through profit or loss for the current period when incurred.Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if the relevantprofit and loss, other comprehensive income and other owner equity are confirmed between the ultimate controldate and the combining date for the combining party and the combined party on the acquirement date, and shallrespectively offset the initial retained incomes or the profits and losses of the current period during thecomparative statement.
(2) Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in which all ofthe combining enterprises are not ultimately controlled by the same party or parties both before and after thebusiness combination. For a business combination not involving enterprises under common control, the party that,on the acquisition date, obtains control of another enterprise participating in the combination is the acquirer, whilethat other enterprise participating in the combination is the acquiree. Acquisition date is the date on which the
acquirer effectively obtains control of the acquiree.The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the acquireeduring the merger on the acquisition date, is recognized as the business reputation. While the merger cost is lessthan the fair value shares of identifiable net assets obtained by the acquiree during the merger, all themeasurement on the identifiable assets, the liabilities, the fair value of liabilities and the merger cost obtained bythe acquiree should firstly be rechecked, and the difference shall be recorded into the current profits and costs ifthe merger cost is still less than the fair value shares of identifiable net assets obtained by the acquiree during themerger after rechecking.Where the temporary difference obtained by the acquirer was not recognized due to inconformity with theconditions applied for recognition of deferred income tax, if, within the 12 months after acquisition, additionalinformation can prove the existence of related information at acquisition date and the expected economic benefitson the acquisition date arose from deductible temporary difference by the acquiree can be achieved, relevantincome tax assets can be recognized, and goodwill offset. If the goodwill is not sufficient, the difference shall berecognized as profit of the current period.For a business combination not involving enterprise under common control, which achieved in stages thatinvolves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance ofAccounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article51 of “Accounting Standards forBusiness Enterprises No.33 - Consolidated Financial Statements” on the “package deal” criterion, to judge themultiple exchange transitions whether they are the"package deal". If it belong to the “package deal” in referenceto the preceding paragraphs of this section and “long-term investment” accounting treatment, if it does not belongto the “package deal” to distinguish the individual financial statements and the consolidated financial statementsrelated to the accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity investment beforethe acquisition date and the cost of new investment at the acquisition date, as the initial cost of the investment, theacquiree's equity investment before the acquisition date involved in other comprehensive income, in the disposalof the investment will be in other comprehensive income associated with the use of infrastructure and the acquireedirectly related to the disposal of assets or liabilities of the same accounting treatment (that is, except inaccordance with the equity method of accounting in the defined benefit plan acquiree is remeasured net changes innet assets or liabilities 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 the acquisitiondate re-assessed at the fair value at the acquisition date, with any difference between its fair value and its carryingamount is recorded as investment income.The previously-held equity interest in the acquiree involved in othercomprehensive income and other comprehensive income associated with the purchase of the foundation should beused party directly related to the disposal of assets or liabilities of the same accounting treatment (that is, except inaccordance with the equity method of accounting in the acquiree is remeasured defined benefit plans other thanchanges in net liabilities 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 consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of control. Controlis the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its
operating activities. The relevant events refer to the activities that have significant influence on the return to theinvested party. In accordance with the specific conditions, the relevant events of the invested party shouldconclude the sale and purchase of goods and services, the management of the financial assets, the purchase anddisposal of the assets, the research and development activities, the financing activities and so on.The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an enterprise or entityunder the control of the Company.Once the change in the relevant facts and circumstances leading to the definition of the relevant elements involvedin 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 relevantinformation, to prepare the consolidated financial statements.For a subsidiary acquired through a business combination not under common control, the operating results andcash flows from the acquisition (the date when the control is obtained) are included in the consolidated incomestatement and consolidated statement of cash flows, as appropriated; no adjustment is made to the openingbalance and comparative figures in the consolidated financial statements. Where a subsidiary and a party beingabsorbed in a merger by absorption was acquired during the reporting period, through a business combinationinvolving enterprises under common control, the financial statements of the subsidiary are included in theconsolidated financial statements. The results of operations and cash flow are included in the consolidatedbalance sheet and the consolidated income statement, respectively, based on their carrying amounts, from the datethat common control was established, and the opening balances and the comparative figures of the consolidatedfinancial statements are restated.When the accounting period or accounting policies of a subsidiary are different from those of the Company, theCompany makes necessary adjustments to the financial statements of the subsidiary based on the Company’s ownaccounting period or accounting policies. Where a subsidiary was acquired during the reporting period through abusiness combination not under common control, the financial statements was reconciliated on the basis of the fairvalue of identifiable net assets at the date of acquisition.Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group transactions, areeliminated in preparing the consolidated financial statements.Minority interest and the portion in the net profit or loss not attributable to the Company are presented separatelyin the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net profit or loss attributableto minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated incomestatement below the net profit line item.When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceedsthe minority shareholders’ portion of the opening balance of shareholders’/equity of the subsidiary, the excess isallocated against the minority interests.When the Company loses control of a subsidiary due to the disposal of a portion of an equity investment or otherreasons, the remaining equity investment is re-measured at its fair value at the date when control is lost. Thedifference between 1) the total amount of consideration received from the transaction that resulted in the loss ofcontrol and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in theformer subsidiary’s net assets immediately before the loss of the control is recognized as investment income forthe current period when 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 or liabilities
are accounted when the control is lost (ie, in addition to the former subsidiary is remeasured at the net definedbenefit plan or changes in net assets and liabilities resulting from, the rest are transferred to the current investmentincome). The retained interest is subsequently measured according to the rules stipulated in the - “ChineseAccounting Standards for Business Enterprises No.2 - Long-term equity investment” or “Chinese AccountingStandards for Business Enterprises No.22 - Determination and measurement of financial instruments”.The company through multiple transactions step deal with disposal of the subsidiary's equity investment until theloss of control, need to distinguish between equity until the disposal of a subsidiary's loss of control over whetherthe transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subjectto the following conditions and the economic impact of one or more of cases, usually indicates that severaltransactions should be accounted for as a package deal:①these transactions are considered。simultaneously, or inthe case of mutual influence made, ②these transactions as a whole in order to achieve a complete business results;
③the occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look alone isnot 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 accordancewith “without losing control over the disposal of a subsidiary part of a long-term equity investments“principlesapplicable accounting treatment. Until the disposal of the equity investment loss of control of a subsidiary of thetransactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the lossof control of the transaction. However, before losing control of the price of each disposal entitled to share in thenet assets of the subsidiary 's investment corresponding to the difference between the disposal, recognized in theconsolidated financial statements as other comprehensive income, loss of control over the transferred togetherwith the loss of 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 parties have joint control，depending of the rightsand obligation of the Company in the joint arrangement. A joint operation is a joint arrangement whereby theCompany has rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture isa joint arrangement whereby the Company has rights to the net assets of the arrangement.
(2) Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share common business interests related to:
A. Confirm individual assets and common assets held based on shareholdings;B. Confirm individual liabilities and shared liabilities held based on shareholdings;C. Confirm the income from the sales revenue of co-operate business outputD. Confirm the income from the sales of the co-operate business output based on shareholdings;E. 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 Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments havingshort holding term (normally will be due within three months from the day of purchase), with strong liquidity andeasy to be exchanged into certain amount of cash that can be measured 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 RMB amount when theforeign currency transaction is initially recognized. On the balance sheet date, the monetary items of foreigncurrency are translated as per the shot exchange rate on the balance sheet date, the foreign exchange conversiongap due to the exchange rate, except for the balance of exchange conversion arising from special foreign currencyborrowings capitals and interests for the purchase and construction of qualified capitalization assets, shall berecorded into the profits and losses of the current period. The non-monetary items of foreign currency measured atthe historical cost 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 fair value shall betranslated at the spot exchange rate on the fair value recognized date, the gap shall be recorded into the currentprofits 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 thetranslation exchange rate. For the owner’s equity, the shot exchange rate on the transaction date is adopted as thetranslation exchange rate, with the exception of “undistributed profits”. The incomes and expenses in the incomestatement shall be translated at the spot exchange rate or the approximate exchange rate on the transaction date.The translation gap of financial statement of foreign currency converted above shall be listed in othercomprehensive incomes under the owner’s equity in the consolidated balance sheet.
10. Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or equityinstruments of other parties.
1. Confirmation and termination of financial instruments
When the company becomes a party to the financial instrument contract, the relevant financial assets or financialliabilities are confirmed.Confirmation of financial instruments is terminated when financial assets satisfy one of the following conditions:
(1) The contractual right to receive cash flow from the financial asset is terminated;
(2) The financial asset has been transferred and the following conditions for derecognition of financial assettransfer are met.When all or part of the current obligations of financial liabilities has been removed, confirmation of thefinancial instruments or part of it should be terminated. When the Company (the debtor) and the creditors signagreements to take on new ways to replace the existing financial liabilities with new financial liabilities and thecontract terms of existing financial liabilities and new financial liabilities are different in essence, derecognize thecurrent financial liabilities and recognize the new financial liabilities. If the Company substantially amends the
contract terms of the original financial liabilities (or part thereof), it shall terminate the confirmation of theoriginal financial liabilities and at the same time confirm a new financial liabilities in accordance with the revisedterms.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified into financial assetsmeasured by amortized cost, financial assets measured by fair value and whose changes are included in othercomprehensive income, and financial assets measured by fair value and whose changes are included in currentprofits and losses according to the company's business mode of managing financial assets and the contractual cashflow characteristics of financial assets.The initial measurement of financial assets is calculated by using fair value. For financial assets measured atfair value, whose changes are included in current profits and losses, relevant transaction costs are directly includedin current profits and losses; For other types of financial assets, relevant transaction costs are included in theinitial recognition amount.
(1) Financial assets measured in amortized cost
Financial assets of the Company that meet the following conditions at the same time are classified asfinancial assets measured in amortized cost: 1) The business mode for managing the financial assets is aimed atcollecting the contract cash flow; 2) The contractual terms of the financial asset stipulate that the cash flowgenerated on a specific date is only the payment of principal and interest based on the amount of outstandingprincipal. For such financial assets, the interest income recognized according to the effective interest rate methodis subsequently measured according to the amortized cost, and the gains or losses arising from amortization orimpairment are included in the current profits and losses.
(2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets of the Company that meet the following conditions at the same time are classified asfinancial assets measured at fair value and whose changes are included in other comprehensive income: 1) Thebusiness mode for managing the financial assets is aimed at both collecting the contractual cash flow and sellingthe financial assets; 2) The contractual terms of the financial asset stipulate that the cash flow generated on aspecific date is only the payment of principal and interest based on the amount of outstanding principal.
At the time of initial recognition, the company may designate non-trading equity instrument investments asfinancial assets measured at fair value and whose changes are included in other comprehensive income, list themas other equity instrument investments, and recognize dividend income when the conditions are met (once thedesignation is made, it shall not be revoked). Dividend income related to such financial assets is included incurrent profits and losses, and changes in fair value are included in other comprehensive income. When thefinancial asset ceases to be recognized, the accumulated gains or losses previously included in othercomprehensive gains shall be transferred into retained income from other comprehensive income, and not beincluded in current profit and loss.
(3) Financial assets measured at fair value and whose changes are included in current profits and losses
The Company classifies the above-mentioned financial assets measured at amortized cost and the financialassets other than those measured at fair value and whose changes are included in other comprehensive income asfinancial assets measured at fair value and whose changes are included in current profits and losses, and lists themas transactional financial assets. In addition, at the time of initial recognition, in order to eliminate or significantlyreduce accounting mismatch, the company designates some financial assets as financial assets measured at fairvalue and whose changes are included in the current profits and losses (once the designation is made, it cannot berevoked). In regard with such financial assets, the Company adopts fair value for subsequent measurement, and
includes changes in fair value into current profits and losses.
3. Classification and measurement of financial liabilities
The Company's financial liabilities are classified into: financial liabilities measured at amortized cost andfinancial liabilities measured at fair value with changes recorded in current profits and losses upon initialrecognition. Financial liabilities are measured at fair value upon initial recognition. For financial liabilitiesmeasured at fair value and whose changes are included in current profits and losses, relevant transaction costs aredirectly included in current profits and losses, and relevant transaction costs for other financial liabilities areincluded in their initial recognition amount.
(1) Financial liabilities measured in amortized cost
Except for the following items, the Company classifies financial liabilities as financial liabilities measured inamortized cost: 1) Financial liabilities measured at fair value and whose changes are included in current profitsand losses; 2) Financial liabilities resulting from the transfer of financial assets that do not meet the conditions forderecognition or continue to be involved in the transferred financial assets; 3) Financial guarantee contracts thatdo not belong to the first two types of situations, and loan commitments that do not belong to the first type ofsituations with loan at a interest rate lower than market.
For such financial liabilities, the real interest rate method is adopted and the subsequent measurement iscarried out according to amortized cost. When derecognition is terminated, the difference between theconsideration paid and the book value of the financial liability shall be included in the current profits and losses.
(2) Financial liabilities measured at fair value and whose movements are included in the profit and loss of thecurrent period
Such financial liabilities include: transactional financial liabilities and financial liabilities designated to bemeasured at fair value at the time of initial recognition and whose changes are included in current profits andlosses. Subsequent measurement of such financial liabilities shall be based on fair value, and the gains or lossesincurred from the changes of fair value, as well as the dividend and interest expenses related to such financialliabilities would be included in current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilitiesmeasured at fair value at the time of initial measurement and whose changes are included in current profits andlosses: 1) The designation can eliminate or significantly reduce accounting mismatch; 2) According to thecompany's risk management or investment strategy stated in official written documents, manage and evaluate thefinancial liability portfolio or the combination of financial assets and financial liabilities on the basis of fair value,and report to key management personnel within the company on this basis; 3) The financial liability includesembedded derivatives that need to be split separately.
4. Fair value of financial instruments
The fair value of financial assets or financial liabilities with active markets shall be determined based onquotations from active markets; Quotations in active markets include quotations for related assets or liabilities thatcan be easily and regularly obtained from exchanges, dealers, brokers, industry groups, pricing agencies orregulatory agencies, and can represent actual and frequent market transactions on the basis of fair trading.
The fair value of financial assets or financial liabilities that do not exist in an active market shall bedetermined by valuation techniques. In valuation, the Company adopts valuation techniques that are applicable inthe current situation and supported by sufficient data and other information to select input values consistent withthe characteristics of assets or liabilities considered by market participants in the transactions of related assets orliabilities, and give priority to the use of relevant observable input values as far as possible. If the relevantobservable input value cannot be obtained or is not feasible, the unobservable input value shall be used.
5. Transfer of financial assets
If the company has transferred almost all risks and rewards in the ownership of the financial asset to thetransferee, the confirmation of the financial asset shall be terminated; If almost all risks and rewards on theownership of a financial asset are retained, the financial asset shall continue to be recognized.If the Company neither transfers nor retains almost all risks and rewards in the ownership of financial assets,it shall be handled according to the following situations respectively: (1) If the control over the financial assets isnot retained, the recognition of the financial assets shall be terminated, and the rights and obligations arising fromor retained in the transfer shall be separately recognized as assets or liabilities; (2) If the control over the financialasset is retained, the relevant financial asset shall continue to be recognized according to the extent that itcontinues to be involved in the transferred financial asset, and the relevant liabilities shall be recognizedaccordingly. The extent to which the company continues to be involved in the transferred financial assets refers tothe extent to which the company bears the risks or rewards of changes in the value of the transferred financialassets.In judging whether the financial asset transfer meets above financial asset derecognition conditions, theprinciple of substance surpassing form is adopted. The Company divides the transfer of financial assets intooverall transfer and partial transfer. If overall transfer of financial assets meets the derecognition conditions, thedifference between the following two amounts will be accounted into current profits or losses:
(1) Book value of the transferred financial assets;
(2) The sum of the consideration received due to the transfer and the accumulated amount of changes in thefair value which is originally accounted in the owner's equity (in case the financial asset related to the transfer isthe financial asset available for sale)
Where the partial transfer of the financial assets meets the derecognition condition, the entire book value ofthe transferred financial assets shall be respectively amortized at the relative fair values of the part derecognizedand the part not derecognized, and the difference between the following two items is accounted in profits andlosses of current period:
(1) Book value of the derecognised part;
(2) The sum of the derecognised part and the amount corresponding to the derecognized part in theaccumulated amount of changes in the fair value previously recognized directly in the owner's equity (in case ofthe financial assets involved in the transfer are available-for-sale financial assets). Where the transfer of thefinancial assets does not meet the derecognition condition, such financial assets is recognized continuously, andthe received consideration is recognized as a financial liability.
6. Provision for impairment of financial assets (excluding receivables)
Based on the expected credit losses, the Company evaluates the expected credit losses of financial assetsmeasured in amortized cost and financial assets measured at fair value and whose changes are included in othercomprehensive income, conducts impairment accounting and confirms the loss reserve. Expected credit loss refersto the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit lossrefers to the difference between the cash flow of all contracts discounted according to the original real interest rateand the expected cash flow of all contracts receivable according to the contract, that is, the present value of allcash shortages.
When one or more events that adversely affect the expected future cash flow of a financial asset occur, thefinancial asset becomes a financial asset with credit impairment. Evidence of credit impairment of financial assetsincludes the following observable information: (1) Major financial difficulties of the issuer or debtor; (2) Thedebtor violates the contract, such as default or overdue payment of interest or principal, etc.; (3) Creditors give
concessions that the debtor will not make under any other circumstances due to economic or contractualconsiderations related to the debtor's financial difficulties; (4) The debtor is likely to go bankrupt or undergo otherfinancial reorganization; (5) The financial difficulties of the issuer or debtor lead to the disappearance of the activemarket of the financial asset; (6) A financial asset is purchased or generated at a substantial discount, whichreflects the fact that credit losses have occurred. Credit impairment of financial assets may be caused by thecombined action of multiple events, and may not be caused by separately identifiable events.
On each balance sheet date, the Company separately measures the expected credit losses of financialinstruments at different stages. If the credit risk of financial instruments has not increased significantly since theinitial confirmation, it is in the first stage. The Company measures the loss reserve according to the expectedcredit loss in the next 12 months; If the credit risk of a financial instrument has increased significantly since itsinitial recognition but no credit impairment has occurred, it is in the second stage. The Company measures the lossreserve according to the expected credit loss of the instrument throughout the duration; If a financial instrumenthas suffered credit impairment since its initial recognition, it is in the third stage. The Company measures the lossreserve according to the expected credit loss of the instrument throughout the duration.For financial instruments with low credit risk on the balance sheet date, the Company assumes that theircredit risk has not increased significantly since the initial confirmation, and measures the loss reserve according tothe expected credit loss in the next 12 months. For financial instruments in the first and second stages and withlow credit risk, the Company calculates interest income based on the book balance before deducting impairmentprovisions and the actual interest rate. For financial instruments in the third stage, the interest income shall becalculated according to their book balance minus the amortized cost after impairment provision and the actualinterest rate.
7. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without offsetting each other.However, if the following conditions are met at the same time, the net amount after offset shall be listed in thebalance sheet: (1) The company has the legal right to offset the confirmed amount, and such legal right is currentlyenforceable; (2) The Company plans to settle on a net basis, or realize the financial assets and settle the financialliabilities at the same time.
11.Notes receivable
For bills receivable, regardless of whether they contain significant financing components, the companyalways measures its loss reserves according to the amount equivalent to the expected credit loss during the wholeduration. The increase or reversal amount of loss reserves thus formed shall be included in the current profits andlosses as impairment losses or profits.
The Company only uses bank acceptance bills for settlement, and the management evaluates this category ofmoney as with lower credit risk. If there is objective evidence that a certain bill receivable has suffered creditimpairment, the Company will make bad debt provision for the bill receivable and confirm the expected creditloss.
12.Account receivable
The Company shall make provision for bad debts according to the expected credit loss amount of accountsreceivable during the whole duration.
For accounts receivable with similar credit risk characteristics, the company combines them according to the
aging status. According to historical experience, the expected loss rate of such combined accounts receivableduring the whole duration is estimated as follows:
| Aging | Expected loss rate of accounts receivable (%) |
| Within 1 year（Including 1 year） | 5.00 |
| 1-2 years | 10.00 |
| 2-3 years | 30.00 |
| Over 3 years | 50.00 |
| Aging | Expected loss rate of other accounts receivable (%) |
| Within 1 year（Including 1 year） | 5.00 |
| 1-2 years | 10.00 |
| 2-3 years | 30.00 |
| Over 3 years | 50.00 |
15. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industryNo
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the products in theprocess of production, the stuff and material consumed during the process of production or the services offered.2．Valuation method of inventory issuedThe company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and Withdrawing Method ofInventory Falling Price ReservesThe inventory shall be measured by use of the lower between the cost and the net realizable value and the inventoryfalling price reserves shall be withdrawn as per the gap of single inventory cost minus the net realizable value at thebalance sheet date. The net realizable value refers to the amounts that the estimated sale price of inventory minus theestimated costs ready to happen till the completion of works, the estimated selling expenses and the relevantexpenses of taxation. The company shall recognize the net realizable value of inventory based on the acquiredunambiguous evidence and in view of the purpose to hold the inventory, the influence of matters after the balancesheet date and other factors.The net realizable value of inventory directly for sale shall be recognized according to the amounts of the estimatedsale price of the inventory minus the estimated sale expenses and the relevant expenses of taxation during theprocess of normal production and operation. The net realizable value of inventory that required to conductprocessing shall be recognized according to the amounts of the estimated sale price of the finished products minusthe estimated costs ready to happen till the completion of works, the estimated selling expenses and the relevantexpenses of taxation. On the balance sheet date, the net realizable value shall be respectively defined for the partialagreed with the contract price and others without the contract price in the same inventory, and the amounts of theinventory falling price reserves withdrawn or returned shall be respectively recognized in comparison with theircorresponding costs.
4. Inventory System
Adopts the Perpetual Inventory System5．Amortization method for low cost and short-lived consumable items and packaging materialsLow cost and short-lived consumable items are amortized using immediate write-off method。
16.Contract assets
Not applicable
17.Contract cost
Not applicable
18.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 one non-currentasset or disposal group, which shall be included into available-for-sale. In specific standards, the followingconditions shall be met at the same time: One non-current asset or disposal group is available for sale at all timesunder current status depending on standard practice of selling them in similar transactions; the company has made aresolution on the sale plan and gained definitive purchase commitments; the sale is expected to be finished withinone year. In which, the disposal group refers to one set of assets that may be disposed as a whole along with otherassets by sale or other ways in one deal and the liability transferred and related directly to such assets. If the assetgroup or combination 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-- AssetImpairment, 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 intoavailable-for-sale non-current asset and disposal group, the book value shall be written down to the net amount offair value minus selling expenses if it is higher than the net amount of fair value minus selling expenses, thewrite-down shall be confirmed as the assets impairment loss and included in current profits and losses, meanwhilethe available-for-sale asset depreciation reserves shall be accrued. For the disposal group, the asset impairment lossshall be written off pro rata the book value of each non-current asset that is applicable to No.42 of AccountingStandards for Business Enterprises: Available-for-sale Non-current Assets, Disposal Group and DiscontinuedOperations (hereinafter referred to as “Available-for-sale rule for measurement”) after deducting the book value ofgoodwill in it.
If the net amount of the fair value of available-for-sale disposal group minus selling expenses increases afterthe balance sheet date, the previous write-downs shall be recovered and reversed in asset impairment loss ofnon-current assets that are applicable to available-for-sale rule for measurement after being included intoavailable-for-sale account title, the amount of reversal shall be included in current profits and losses and increasedpro rata its book value based on the proportion of the book value of each non-current asset in the disposal group thatis applicable to available-for-sale rule for measurement except for goodwill; the book value of written-off goodwilland the asset impairment loss confirmed before the non-current asset specified in available-for-sale rule formeasurement is classified into 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 not be accrueddepreciation or amortization, the interest of debit in available-for-sale disposal group and other expenses shallcontinue to be confirmed.
The non-current asset will no longer be included into available-for-sale category or will be removed from theavailable-for-sale disposal group if it or the disposal group has no longer satisfied the conditions for classifyingavailable-for-sale assets and measured as per the lower of: (1) book value of the non-current asset before beingclassified into available-for-sale asset adjusted on the basis of the depreciation, amortization or impairment thatshall be confirmed on the assumption that the non-current asset is not included into available-for-sale account title;
(2)Recoverable amount.
19.Creditor's rights investment
Not applicable
20. Other Creditor's rights investment
Not applicable
21.Long-term account receivable
Not applicable
22.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has control, jointcontrol or significant influence over the long-term equity investments. The Company invested does not havecontrol, joint control or significant influence over the long-term equity investments as financial assets availablefor sale or at fair value and the changes included financial assets through profit or loss.Joint control is the Company control over an arrangement in accordance with the relevant stipulations arecommon, related activities and the arrangement must be after sharing control participants agreed to thedecision-making. Significant influence is the Company s financial and operating policies of the entity has the rightto participate in decision-making, but can not control or with other parties joint control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common control ismeasured at the acquirer's share of the combination date book value of the acquiree's net equity in the ultimatecontroller's consolidated financial statements. The difference between the cost and book value of cash paid,non-monetary assets transferred and liabilities assumed is adjusted to capital reserves, and to retained earnings ifcapital reserves is insufficient. If the consideration is transferred by way of issuing equity instruments, the facevalue of the equity instruments issued is recognised in share capital and the difference between the cost of the facevalue of the equity instruments 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 not under commoncontrol is the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued.(For the equity of the combined party under common control obtained step-by-step through multiple transactionsand the business combination under common control ultimately formed, the company should respectively disposeall the transactions if belong to the package deal. For the package deal, all the transactions will be conducted theaccounting treatment as the deal with acquisition of control. For the non-package deal, the shares of the bookvalue of the stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements ofthe ultimate control party shall be as the initial investment cost of the long-term equity investment, and the capitalreserves shall be adjusted for the difference between the initial investment cost of long-term equity investment andthe sum of the book value of long-term equity investment before merging and that of new consideration paymentobtained on the merger date, or the retained earnings shall be adjusted if the capital reserves are insufficient tooffset. As for the equity investment held before the merger date, the accounting treatment will not be conductedtemporarily for other comprehensive income accounted by equity method or confirmed for the financial assetsavailable for sale.)All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legalservices, valuation and consultancy and other administrative expenses, are recognised in profit or loss for theperiod during which the acquisition occurs. For the merger of enterprises not under the same control through
gaining the shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following twoways depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all thedeals 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 increasedinvestment cost as the initial cost of the long-term equity investment. For the shares originally held by thisenterprise accounted for by weighted equity method, the relevant other comprehensive income shall not beaccounted for temporarily. If the equity investment held originally can be classified as the financial assets for sale,the difference between the fair value and the book value, and the variation in the accumulative fair value of othercomprehensive returns recorded originally will be transferred into the current profits and losses.All expenses incurred directly associated with the acquisition by the acquirer, including expenditure of audit, legalservices, valuation and consultancy and other administrative expenses, are recognised in profit or loss for theperiod during which the acquisition occurs.Long-term equity investments acquired not through business combination are measured at cost on initialrecognition. Depending on the way of acquisition, the cost of acquisition can be the total cash paid, the fair valueof equity instrument issued, the contract price, the fair value or book value of the assets given away in the case ofnon-monetary asset exchange, or the fair value of the relevant long-term equity investments. The cost ofacquisition of a long-term equity investment acquired not through business combination also includes all directlyassociated expenses, applicable taxes and fees, and other necessary expenses. When the significant impact or thejoint control but non-control on the invested party can be implemented due to the additional investment, thelong-term equity investment cost is the sum of the fair value of the equity investment originally held and the newinvestment costs based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition andMeasurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments significantinfluence are accounted for using the equity method. In addition, the Company's financial statements using thecost method of accounting for long-term equity can exercise control over the investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cashdividends or profits declared but not yet paid that are included in the price or consideration actually paid uponacquisition of the long-term equity investment, investment income is recognized in the period in accordance withthe attributable share of cash dividends or profit distributions declared by the investee.
(2)Equity method of accounting for long-term equity investments
When 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-termequity 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 the long-term equity investment adjustment costs.Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest inthe fair values of the investee’s identifiable net assets at the time of acquisition, no adjustment shall be made tothe initial investment cost. The carrying amount of an long-term equity investment measured using the equitymethod is adjusted by the Company's share of the investee's net profit and other comprehensive income, which isrecognised as investment income and other comprehensive income respectively. The carrying amount of an
long-term equity investment measured using the equity method is reduced by profit distribution or cash dividendsannounced by the 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 andprofit distribution, which is adjusted to capital reserves。The net profit of the investee is adjusted by the fair valueof the investee's identifiable assets as at acquistion. The financial statements and hence the net profit and othercomprehensive income of an investee which does not adopt accounting policies or accounting period uniform withthe Company is adjusted by the Company's accounting policies and accounting period. The Company's share ofunrealised profit or loss arising from related party transactions between the Company and an associate or jointventure is deducted from 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 assetstransferred to an associate or joint venture which form part of the Company's investment in the investee but whichdoes not enable the Company obtain control over the investee, the cost of the additional investment acquired ismeasured at the fair value of assets transferred and the difference between the cost of the additional investmentand the book value of the assets transferred is recognised in profit or loss. Where assets transferred to an associateor joint venture form an operation, the difference between the consideration received and the book value of theassets transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture forman operation, the transaction is accounted for in accordance with CAS 20 - Business Combination, any gain or lossis 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 the long-term equityinvestment and other net long-term investments in the investees. Where the Company has obligation to shareadditional net loss of the investee, the estimated share of loss recognised as accrued liabilities and investment loss.Where the Company has unrecognised share of loss of the investee when the investee generates net profit, theCompany's unrecognised share of loss is reduced by the Company's share of net profit and when the Company'sunrecognised share or loss is eliminated in full, the Company's share of net profit, if any, is recognised asinvestment income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion ofnet asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve isnot sufficient to absorb the difference, the excess are adjusted against returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, thedifference in the net asset between the amount of disposed long-term investment and the amount of theconsideration paid or received is adjusted to the owner’s equity. If the disposal of long-term investment in asubsidiary involves loss of control over the subsidiary, the related accounting policies in Note applies. Fordisposal of long-term equity investments in any situation other than the fore-mentioned situation, the differencebetween the book value of the investment disposed and the consideration received is recognised in profit or loss.The investee's equity movement other than net profit, other comprehensive income and profit distribution isreocgnised in profit or loss proportionate to the disposal.Where a long-term equity investment is measured by the equity method both before and after part disposal of theinvestment, cumulative other comprehensive income relevant to the investment recognised prior to the acquistionis treated in the same manner that the investee disposes the relevant assets or liabilities proportionate to thedisposal. The investee's equity movement other than net profit, other comprehensive income and profit
distribution is reocgnised in profit or loss proportionate to the disposal.Where a long-term equity investment is measured at cost both before and after part disposal of the investment,cumulative other comprehensive income relevant to the investment recognised, as a result of accounting by equitymethod or recognition and measurement principles applicable to financial instruments, prior to the Company'sacquisition of control over the investee is treated in the same manner that the investee disposes the relevant assetsor liabilities and recognised in profit or loss proportionate to the disposal.The investee's equity movement otherthan net profit, other comprehensive 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 the investee and theCompany continues to have significant influence over the investee after the partial disposal, the investment inmeasured by the equity method in the Company's separate financial statements; where the Company's control overan investee is lost due to partial disposal of investment in the investee and the Company ceases to have significantinfluence over the investee after the partial disposal, the investment in measured in accordance with therecognition and measurement principles applicable to financial instruments in the Company's separate financialstatements and the difference between the fair value and the book value of the remaining investment at the date ofloss of control is recognised in profit or loss. Cumulative other comprehensive income relevant to the investmentrecognised, as a result of accounting by equity method or recognition and measurement principles applicable tofinancial instruments, prior to the Company's acquisition of control over the investee is treated in the same mannerthat the investee disposes the relevant assets or liabilities on the date of loss of control. The investee's equitymovement other than net profit, other comprehensive income and profit distribution, as a result of accounting byequity method, is reocgnised in profit or loss when control is lost. Where the remaining investment is measured byequity method, the fore-mentioned other comprehensive income and other equity movement are recognised inprofit or loss proportionate to the disposal; Where the remaining investment is measured in accordance with therecognition and measurement principles applicable to financial instruments, the fore-mentioned othercomprehensive 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 partial disposal ofinvestment in the investee,the remaining investment in the investee is measured in accordance with therecognition and measurement principles applicable to financial instruments, the difference between the fair valueand the book value of the remaining investment at the date of loss of joint control or significant influence isrecognised in profit or loss.Cumulative other comprehensive income relevant to the investment recognised, as aresult of accounting by equity method, prior to the partial disposal is treated in the same manner that the investeedisposes the relevant assets or liabilities on the date of loss of joint control or significant influence. The investee'sequity movement other than net profit, other comprehensive income and profit distribution is reocgnised in profitor loss when joint control or significant influence is lost.Where the Company's control over an investee is lost through multiple disposals and the multiple disposals shallbe viewed as one single transaction, the multiple disposals is accounted for one single transaction which result inthe Company's loss of control over the investee. Each difference between the consideration received and the bookvalue of the investment disposed is recognised in other comprehensive income and reclassified in full to profit orloss at the time when control over the investee is lost.
23.Investment property
The measurement mode of investment property
The company shall adopt the cost mode to measure the investment property.Depreciation or Amortization Method by Use of Cost Mode1．The measurement mode of investment propertyThe investment property of the company includes the leased land use rights, the leased buildings, the land userights 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 Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation by the servicelife average method, and the depreciation policy is the same with that of the fixed assets. The land use rights heldand prepared to transfer after appreciation in the investment property shall be amortized by the line method, andthe specific accounting policy is same with that of the intangible assets.
24.Fixed assets
1．The conditions of recognitionFixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering laborservice, renting or business management and their useful life is in excess of one fiscal year. The fixed assets canbe recognized when the following requirements are all met: (1) the economic benefits relevant to the fixed assetswill flow into the enterprise. (2) the cost of the fixed assets can be measured reliably. The fixed assets of thecompany include the houses and buildings, the decoration of the fixed assets, the machinery equipment, thetransportation equipment, the electronic 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 | 10.00% | |
| Machinery and equipment | Straight-line method | 10-14 years | 4% | 9.60%-6.86% |
| Transportation | Straight-line method | 8 years | 4% | 12.00% |
equipment
| equipment | ||||
| Electronic equipment | Straight-line method | 8 years | 4% | 12.00% |
| Other equipment | Straight-line method | 8 years | 4% | 12.00% |
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 state have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition, construction orproduction of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for itsintended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costsincurred during these periods recognized as an expense for the current period until the acquisition, construction orproduction is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization conditions, theLoan 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 interestamount shall be recognized according to the amount of the interest cost for the special borrowings actually occurredduring the current period (including the amortization of discount or premium recognized as per the effective interestmethod) minus the interest income acquired after the borrowings deposit in bank or the investment income obtainedfrom the temporary investment. For the general borrowings for the purchase and construction of qualified assets, thecapitalized interest amount of the general borrowings shall be computed and recognized according to the weightedaverage of accumulative asset expense beyond the expense of the special borrowings, multiplying the capitalizationrate of general borrowings.
27.Biological Assets
Not applicable
28.Oil & Gas assets
Not applicable
29. Right to use assets
Not applicable
30.Intangible assets
1. 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 areconducted 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 the quantity of service life formed andthe number of similar measurement unit shall be estimated. If the term of economic benefits of the intangibleassets brought for the company is not able to be foreseen, the intangible assets shall be recognized as that with theindefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the following factorsto estimate the service life: ① the normal service life of products produced with the assets, and the acquiredinformation of the service life of similar assets. ② the estimation of the current stage conditions and the futuredevelopment trends in the aspects of technology and craft. ③ the demand of the products produced by the assetsor the offered services in the market. ④ the expectation of actions adopted by current or potential competitors. ⑤the expected maintenance expense for sustaining the capacity to economic benefits brought by the assets and theability to the relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term ofthe assets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of other assetsheld by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and ReviewProcedure of Its Service LifeThe company shall be unable to foresee the term of economic benefits brought by the assets for the company, orthe indefinite term of intangible assets recognized as the indefinite service life of intangible assets.The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights, but theindefinite service life of contract provision or legal provisions. ② unable to judge the term of economic benefitsbrought by the intangible assets for the company after the integration of information in the same industry or therelevant expert argumentation.At the end of every year, the review should be made for the service life of the intangible assets with the indefiniteservice life, and the relevant department that uses the intangible assets, shall conduct the basic review by themethod from up to down, in order to evaluate the judgment criteria of the indefinite service life if there is thechange.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized according to theexpected implementation mode of the economic benefits related to the intangible assets during the service life,and the line method shall be adopted to amortize for the intangible assets unable to reliably recognize the expectedimplementation mode. The specific service life is as follows:
| Items | Amortization life time（Year） |
| Land use right | 50 years |
| Proprietary technology | 15 years |
| Software | 5 years |
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded into the currentprofits and losses when occurring. The expenditure for internal research and development project in thedevelopment stage shall be recognized as the intangible assets when the following requirements aresimultaneously met: (1) the completion of the intangible assets is available for use or sale, and feasible in thetechnology. (2) the intention to complete the intangible assets and use or sale. (3) the method for the economicbenefits produced by the intangible assets, including the evidence that shows there exists the market for theproducts generated from the intangible assets or the intangible assets have the market. The intangible assets areused internally which shows the serviceability. (4) there are sufficient technology, financial resources and otherresources to support the completion of the development of the intangible assets, and there is ability to use or sellthe intangible assets. (5) the expenditure belong to the development stage of the intangible assets can be reliablymeasured.The specific criteria for the division of the internal research and development projects at the research stage and thedevelopment stage of the company is as follows: (1) the investigation stage planned to obtain the new technologyand knowledge, shall be recognized as the research stage, which has the features of planning and exploration. (2)before the commercial manufacture and use, the research results or other knowledge should be applied for the planor design, in order to produce the new or improved stages with substantial materials, devices and products, whichshould be recognized as the development stage, and this stage has the features of pertinence and more possibilityto create the achievement.
31.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment, theinvestment property measured by the cost mode, the fixed assets and the projects under construction if there ispossible impairment on the balance sheet date. If there exists the evidence shows that the long-term assets havethe impairment, the impairment test should be conducted, and the recoverable amount should be estimated. Theimpairment shall be confirmed if there exists after the comparison of the estimated recoverable amount of theassets and its book value, and if the assets impairment provision shall be withdrawn to recognize thecorresponding impairment 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 and the presentvalue 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 by the businesscombination and the intangible assets with the indefinite service life whether there exists the impairment.The impairment loss of long-term assets after recognized shouldn’t be reversed in the future accounting period.
32.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and subsequentperiod (together of more than one year).The long-term unamortized expense shall be book kept as per the actual amount occurred, and shall be averagelyamortize within the benefit period or the specified period. If the long-term unamortized expense can’t make thebenefits for the future accounting period, the amortized value of the unamortized project shall all be transferredinto the current profits and losses.
33.Contract liabilities
Not applicable
34.Remuneration
1. 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 Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit planaccording to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on the balancesheet 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 Plan
The 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 mutuallyconsistent 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 theservice costs, the net interests on the net liabilities or the net assets of the defined benefit plan, and the changescaused 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 andrecorded into the current profits and losses: (1) when the company can’t withdraw the demission welfare provideddue 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 laborrelations 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 Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of the definedcontribution 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.
35.Lease liabilities
Not applicable
36. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product qualityassurance, 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 per
the 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.
37. Share payment
1.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 equitieswhich 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 Cash
The 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 afterbeing 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 value
amount 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.
38. Other financial instruments such as preferred stocks and perpetual bonds
Not applicable
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNoWhether implemented new revenue guidelines?
□ Yes √No
1. Recognition Principle of Revenue
(1) The Goods for Sale
The 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 Provision
If 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 Assets
The 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 Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of products indomestic market shall be recognized after the following requirements are met: The company has agreed todeliver the goods to the purchaser under the contract and the revenue amount of product sales has beendetermined, 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. Therevenue of the sale of products in foreign market shall be recognized after the following requirements are met:
The company has made customs clearance and departure from port under the contract, the bill of landing hasobtained and the revenue of the sale of products has been recognized, the payment for goods has been
withdrawn or the payment vouchers has been obtained and related economic benefits are likely to inflow, andthe costs related to the products can be measured reliably.
40.Government subsidy
Government grants are monetary assets and non-monetary assets that the company has obtained free of chargefrom the government and are divided into government grants related to assets and government grants related toincome. Asset-related government grants refer to government grants obtained by the company that are used topurchase or construct or otherwise form long-term assets. Income-related government subsidies refer to governmentsubsidies other than government subsidies related to assets.If there is evidence at the end of the period that the company is able to meet the relevant conditions stipulated inthe financial support policy and it is expected to receive financial support funds, the government subsidies shall berecognized according to the amount receivable. In addition, government grants are confirmed upon actual receipt.Asset-related government grants are recognized as deferred income and are charged to profit or loss for thecurrent period in a reasonable and systematic manner over the useful life of the relevant assets. Revenue-relatedgovernment subsidies, which are used to compensate for the related costs or losses of the Company in the futureperiod, are recognized as deferred income, and are recognized in the profits and losses of the current period in theperiod in which the relevant costs, expenses or losses are recognized. The relevant costs, expenses or losses thathave been used to compensate the Company have been directly recorded in the current profits and losses.Government grants related to the company's daily activities are included in other income; those unrelated to thedaily activities of the company are included in non-operating income.For the policy-subsidized discounted loans obtained by the company, the accounting treatment is divided intothe following two cases: when the finance allocates the interest-subsidy funds to the loan bank and the loan bankprovides the company with a policy-based preferential interest rate, the company uses the actual amount of theloan received as the entry value of the loan, and calculates the relevant borrowing costs according to the loanprincipal and the preferential policy interest rate; if the finance allocates the interest-free funds directly to thecompany, the company will reduce the relevant borrowing costs by the corresponding discount interest.
41.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax basis, andthe 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 Assets
For 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 transactiondoesn’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 Liabilities
All 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 thetransaction 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 followingrequirements 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 Assets
The 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 arerecorded into the owner’s equity when the original recognition, others shall be recorded into the current incometax expense. The book value of the deferred tax assets reduced can be recovered when sufficient taxable income ispossibly obtained.
5. Income Tax Expense
The 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 anditems 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 thebusiness 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.
42.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant assets cost orrecognized 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 Lease
When the company is as the tenant, the company shall recognize the less one between the fair value of leasing assetsand 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 ofminimum lease receivables, minimum lease receivables and unguaranteed minus the sum of the present value asthe unrealized financing income. During each lease period, the current financing charges shall be measured andrecognized by the effective interest method.
43. Other important accounting policies and accounting estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
| The content and reason for change of accounting policy | Approval process | Remarks |
| In 2017, the Ministry of Finance revised and promulgated the Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets, Accounting Standards for Business Enterprises No.24-Hedge Accounting and Accounting Standards for Business Enterprises No.37-Presentation of Financial Instruments (the above four standards are collectively referred to as the "New Financial Instruments Standards"), requiring enterprises listed both in China and abroad at the same time, as well as enterprises listed abroad and using International Financial Reporting Standards or Accounting Standards for Business Enterprises to prepare financial reports, to implement them on January 1, 2018; Other domestic listed enterprises are required to implement them on January 1, 2019. According to the regulations, the company will implement the new financial instrument standards from January 1, 2019 and adjust the relevant contents of accounting policies. | Adopted at the 18th meeting of the 7th Board of Directors | http://www.cninfo.com.cn On April 27,2019(Announcement No.2019-17) |
| On April 30, 2019, the Ministry of Finance issued the Notice on Revising and Issuing the Format of Financial Statements for General Enterprises in 2019 (CK [2019] No.6) (hereinafter referred to as "CK [2019] No.6"), requiring non-financial enterprises that implement the Accounting Standards for Enterprises to prepare financial statements in accordance with the requirements of the Accounting Standards for Enterprises and CK [2019] No.6. The interim financial statements and annual financial statements for enterprises in 2019 and the financial statements for subsequent periods shall be prepared and implemented in | Adopted at the 20th meeting of the 7th Board of Directors | http://www.cninfo.com.cn On August 21,2019(Announcement No.2019-38) |
accordance with the requirements of CK [2019] No.6.
accordance with the requirements of CK [2019] No.6.
The Company will implement the new financial instrument standards from January 1, 2019. For the impact onthe items related to the financial statements at the beginning of the year, please refer to the following "(3)Implementation of the adjustment of the new financial instrument standards, new income standards and new leasestandards for the first time, and implementation of the items related to the financial statements at the beginning ofthe year for the first time".Since the semi-annual financial report on June 30, 2019 and the financial reports for the following periods,the company has implemented the requirements of the CK [2019] No.6, and restated the items and amounts of theinitial financial statements as follows:
| The specific contents of accounting policy changes | Name of Financial Statement Items Affected | At the beginning of the consolidated balance sheet or the impact amount of the consolidated income statement in the same period last year (RMB) |
| The company will split "notes receivable and accounts receivable" into "accounts receivable" and "notes receivable" for listing. | Notes receivable | 886,432.06 |
| Account receivable | 528,454,015.59 | |
| Notes receivable and account receivable | -529,340,447.60 |
| The company will split "notes payable and accounts payable" into "accounts payable" and "notes payable" for listing. | Notes payable | |
| Account payable | 180,239,452.00 | |
| Notes payable and account receivable | -180,239,452.00 |
| Items | December 31,2018 | January 1,2019 | Adjustment amount |
| Current asset： | |||
| Monetary fund | 1,141,759,374.60 | 1,141,759,374.60 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | 540,000,000.00 | 540,000,000.00 |
Financial assets measuredat fair value with variationsaccounted into currentincome account
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | 886,432.06 | 886,432.06 | |
| Account receivable | 528,454,015.59 | 528,454,015.59 | |
| Financing of receivables | |||
| Prepayments | 229,028,791.15 | 229,028,791.15 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other account receivable | 14,846,896.50 | 14,846,896.50 | |
| Including：Interest receivable | 5,589,704.44 | 5,589,704.44 | |
| Dividend receivable | |||
| Repurchasing of financial assets | |||
| Inventories | 439,752,718.77 | 439,752,718.77 | |
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | |||
| Other current asset | 639,797,959.30 | 99,797,959.30 | -540,000,000.00 |
| Total of current assets | 2,994,526,187.97 | 2,994,526,187.97 | |
| Non-current assets： | |||
| Loans and payment on other’s behalf disbursed | |||
| Debt investment | |||
| Available for sale of financial assets | 45,373,784.87 | -45,373,784.80 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable |
Long term share equityinvestment
| Long term share equity investment | 32,952,085.66 | 32,952,085.66 | |
| Other equity instruments investment | 241,875,289.00 | 241,875,289.00 | |
| Other non-current financial assets | |||
| Property investment | 167,997,941.98 | 167,997,941.98 | |
| Fixed assets | 987,876,247.55 | 987,876,247.55 | |
| Construction in progress | 15,621,286.64 | 15,621,286.64 | |
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 37,880,815.85 | 37,880,815.85 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | 1,486,209.03 | 1,486,209.03 | |
| Deferred income tax asset | 6,036,198.23 | 6,036,198.23 | |
| Other non-current asset | 329,452,659.01 | 329,452,659.01 | |
| Total of non-current assets | 1,624,677,228.82 | 1,821,178,732.95 | 196,501,504.13 |
| Total of assets | 4,619,203,416.79 | 4,815,704,920.92 | 196,501,504.13 |
| Current liabilities | |||
| Short-term loans | 411,522,111.40 | 411,522,111.40 | |
| Loan from Central Bank | |||
| Borrowing funds | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 180,239,452.90 | 180,239,452.90 | |
| Advance receipts | 120,702,951.37 | 120,702,951.37 |
Selling of repurchasedfinancial assets
| Selling of repurchased financial assets | |||
| Deposit taking and interbank deposit | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees’ wage payable | 32,506,267.08 | 32,506,267.08 | |
| Tax payable | 7,745,128.99 | 7,745,128.99 | |
| Other account payable | 229,015,279.98 | 229,015,279.98 | |
| Including：Interest payable | 39,044,044.39 | 39,044,044.39 | |
| Dividend payable | |||
| Fees and commissions payable | |||
| Reinsurance fee payable | |||
| Contract Liabilities | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 40,000,000.00 | 40,000,000.00 | |
| Other current liability | |||
| Total of current liability | 1,021,731,191.72 | 1,021,731,191.72 | |
| Non-current liabilities： | |||
| Reserve fund for insurance contracts | |||
| Long-term loan | |||
| Bond payable | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | |||
| Long-term remuneration payable to staff | |||
| Expected liabilities |
Deferred income
| Deferred income | 137,991,698.33 | 137,991,698.33 | |
| Deferred income tax liability | 49,125,376.03 | 49,125,376.03 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 137,991,698.33 | 187,117,074.36 | 49,125,376.03 |
| Total of liability | 1,159,722,890.05 | 1,208,848,266.08 | 49,125,376.03 |
| Owners’ equity | |||
| Share capital | 511,274,149.00 | 511,274,149.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 1,865,716,983.63 | 1,865,716,983.63 | |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 | |
| Other comprehensive income | 1,339,208.41 | 148,715,336.51 | 147,376,128.10 |
| Special reserve | |||
| Surplus reserves | 80,004,803.23 | 80,004,803.23 | |
| Common risk provision | |||
| Retained profit | -57,774,473.41 | -57,774,473.41 | |
| Total of owner’s equity belong to the parent company | 2,373,329,991.86 | 2,520,706,119.96 | 147,376,128.10 |
| Minority shareholders’ equity | 1,086,150,534.88 | 1,086,150,534.88 | |
| Total of owners’ equity | 3,459,480,526.74 | 3,606,856,654.84 | 147,376,128.10 |
| Total of liabilities and owners’ equity | 4,619,203,416.79 | 4,815,704,920.92 | 196,501,504.13 |
| Items | December 31,2018 | January 1,2019 | Adjustment amount |
| Current asset： | |||
| Monetary fund | 85,416,567.74 | 85,416,567.74 | |
| Transactional financial assets | 500,000,000.00 | 500,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current |
income account
| income account | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Account receivable | 541,948.21 | 541,948.21 | |
| Financing of receivables | |||
| Prepayments | 17,436.00 | 17,436.00 | |
| Other account receivable | 13,856,382.02 | 13,856,382.02 | |
| Including：Interest receivable | 4,974,799.47 | 4,974,799.47 | |
| Dividend receivable | |||
| Inventories | |||
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | |||
| Other current asset | 500,000,000.00 | -500,000,000.00 | |
| Total of current assets | 599,832,333.97 | 599,832,333.97 | |
| Non-current assets： | |||
| Debt investment | |||
| Available for sale of financial assets | 15,373,784.87 | -15,373,784.87 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable | |||
| Long term share equity investment | 1,997,175,852.27 | 1,997,175,852.27 | |
| Other equity instruments investment | 199,910,297.83 | 199,910,297.83 | |
| Other non-current financial assets | |||
| Property investment | 161,053,628.71 | 161,053,628.71 | |
| Fixed assets | 26,565,399.91 | 26,565,399.91 | |
| Construction in progress | |||
| Production physical |
assets
| assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 1,012,374.75 | 1,012,374.75 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | |||
| Deferred income tax asset | 5,818,069.48 | 5,818,069.48 | |
| Other non-current asset | |||
| Total of non-current assets | 2,206,999,109.99 | 2,391,535,622.95 | 184,536,512.96 |
| Total of assets | 2,806,831,443.96 | 2,991,367,956.92 | 184,536,512.96 |
| Current liabilities | |||
| Short-term loans | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 411,743.57 | 411,743.57 | |
| Advance receipts | 639,024.58 | 639,024.58 | |
| Contract Liabilities | |||
| Employees’ wage payable | 9,760,306.51 | 9,760,306.51 | |
| Tax payable | 5,494,627.33 | 5,494,627.33 | |
| Other account payable | 141,746,352.67 | 141,746,352.67 | |
| Including：Interest payable | |||
| Dividend payable | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year |
Other current liability
| Other current liability | |||
| Total of current liability | 158,052,054.66 | 158,052,054.66 | |
| Non-current liabilities： | |||
| Long-term loan | |||
| Bond payable | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | |||
| Long-term remuneration payable to staff | |||
| Expected liabilities | |||
| Deferred income | 700,000.00 | 700,000.00 | |
| Deferred income tax liability | 46,134,128.24 | 46,134,128.24 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 700,000.00 | 46,834,128.24 | 46,134,128.24 |
| Total of liability | 158,752,054.66 | 204,886,182.90 | 46,134,128.24 |
| Owners’ equity | |||
| Share capital | 511,274,149.00 | 511,274,149.00 | |
| Other equity instruments | |||
| Including：preferred stock | |||
| Sustainable debt | |||
| Capital reserves | 1,599,025,454.96 | 1,599,025,454.96 | |
| Less：Shares in stock | 27,230,679.00 | 27,230,679.00 | |
| Other comprehensive income | 1,339,208.41 | 139,741,593.13 | 138,402,384.72 |
| Special reserve | |||
| Surplus reserves | 80,004,803.23 | 80,004,803.23 | |
| Retained profit | 483,666,452.70 | 483,666,452.70 | |
| Total of owners’ equity | 2,648,079,389.30 | 2,786,481,774.02 | 138,402,384.72 |
| Total of liabilities and owners’ equity | 2,806,831,443.96 | 2,991,367,956.92 | 184,536,512.96 |
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases
□ Applicable √Not applicable
45.Other
NilVI.Taxes of the Company
1. Main taxes categories and tax rate
| Taxes | Tax references | Applicable tax rates |
| VAT | The taxable turnover | 16%，13%，5% |
| City construction tax | Turnover tax to be paid allowances | 7% |
| Business income tax | Turnover tax to be paid allowances | 25%，16.5%，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% |
| Shengtou（HK）Co., Ltd. | 16.5% |
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash at hand | 10,934.20 | 13,559.60 |
| Bank deposit | 260,939,206.53 | 1,137,431,239.39 |
| Other monetary funds | 158,277,057.87 | 4,314,575.61 |
| Total | 419,227,198.60 | 1,141,759,374.60 |
| Including : The total amount of deposit abroad | 3,516,279.32 | 9,294,408.13 |
| Items | Year-end balance | Year-beginning balance |
| financial assets measured at their fair values and with the variation included in the current profits and losses | 760,000,000.00 | 540,000,000.00 |
| Including： | ||
| Designation of financial assets measured at their fair values and with the variation included in the current profits and losses | ||
| Including： | ||
| Total | 760,000,000.00 | 540,000,000.00 |
3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 31,079,249.92 | 886,432.06 |
| Total | 31,079,249.92 | 886,432.06 |
| Items | Pledged amount |
| Bank acceptance | 0.00 |
| Total | 0.00 |
| Items | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Bank acceptance | 46,707,583.37 | 0.00 |
| Total | 46,707,583.37 | 0.00 |
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract oragreementNot applicable
（6） The actual write-off accounts receivable
Not applicable
5. Account receivable
(1)Classification account receivables.
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(%) | |||
| Accrual of bad debt provision by single item | 13,247,084.82 | 2.49% | 9,454,406.18 | 71.37% | 3,792,678.64 | 13,233,464.33 | 2.34% | 9,436,550.41 | 71.31% | 3,796,913.92 |
| Including： | ||||||||||
| Accounts receivable of individual significance and subject to individual impairment assessment | 6,300,455.84 | 1.18% | 3,998,201.79 | 63.46% | 2,302,254.05 | 6,300,455.84 | 1.11% | 3,998,201.79 | 63.46% | 2,302,254.05 |
| Accounts receivable of individual insignificance but subject to individual impairment assessment | 6,946,628.98 | 1.31% | 5,456,204.39 | 78.54% | 1,490,424.59 | 6,933,008.49 | 1.23% | 5,438,348.62 | 78.44% | 1,494,659.87 |
| Accrual of bad debt provision by portfolio | 519,241,524.88 | 97.51% | 25,980,961.95 | 5.00% | 493,260,562.93 | 552,278,688.56 | 97.66% | 27,621,586.89 | 5.00% | 524,657,101.67 |
| Including： | ||||||||||
| Total | 532,488,609.70 | 100.00% | 35,435,368.13 | 6.65% | 497,053,241.57 | 565,512,152.89 | 100.00% | 37,058,137.30 | 6.55% | 528,454,015.59 |
Name
| Name | Closing balance | |||
| Book balance | Bad debt provision | Proportion | Reason | |
| Dongguan Fair LCD Co., Ltd. | 1,695,947.73 | 1,695,947.73 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| 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. |
| Huangshan Zhongxian Microelectronics Co., Ltd. | 904,518.00 | 452,259.00 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Mianyang Zijin New Material Technology Co., Ltd. | 598,226.43 | 598,226.43 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Shanghai Weizhou Microelectroniics Technology Co., Ltd. | 525,471.80 | 525,471.80 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Shenzhen Chuangyu Display Technology Co., Ltd. | 487,288.00 | 243,644.00 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Dongguan Jiaxian Electronic Co., ltd. | 486,510.50 | 486,510.50 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Shenzhen Guanguan Lida Microelectronic Co., Ltd. | 475,399.34 | 237,699.67 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Jilin Lianbei Optical Technology Co., Ltd. | 443,768.72 | 221,884.36 | 50.00% | Beyond the credit period for a long time, uncertain recovered. |
| Hefei Guoyun Electronic Technology Co., Ltd. | 396,539.19 | 396,539.19 | 100.00% | Beyond the credit period for a long time, uncertain recovered. |
| Other | 2,628,907.00 | 2,293,969.44 | 87.26% | The Individual amount is small，Beyond the credit period for a long time, |
uncertain recovered.
| uncertain recovered. | ||||
| Total | 13,247,084.82 | 9,454,406.18 | -- | -- |
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Within 1 year | 518,978,068.05 | 25,948,903.41 | 5.00% |
| 1-2 years | 234,892.53 | 23,489.25 | 10.00% |
| 2-3 years | 28,564.30 | 8,569.29 | 30.00% |
| Over 3 years | 50.00% | ||
| Total | 519,241,524.88 | 25,980,961.95 | -- |
| Aging | Closing balance |
| Within 1 year（Including 1 year） | 518,978,068.05 |
| Including：Subtotal within 1 year | 518,978,068.05 |
| 1-2 years | 234,892.53 |
| 2-3 years | 737,059.92 |
| Over 3 years | 12,538,589.20 |
| 3-4 years | 940,955.57 |
| 4-5 years | 5,171,125.69 |
| Over 5 years | 6,426,507.94 |
| Total | 532,488,609.70 |
| Category | Opening balance | Amount of change in the current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | |||
Accrual of bad debt provision by portfolio:
| Accrual of bad debt provision by portfolio: | 27,621,586.89 | 1,640,624.94 | 25,980,961.95 | ||
| Accrual of bad debt provision by single item: | 9,436,550.41 | 17,855.77 | 9,454,406.18 | ||
| Total | 37,058,137.30 | 17,855.77 | 1,640,624.94 | 35,435,368.13 |
| Name | Nature | Balance in year-end | Aging | Proportion(%) | Bad debt provision |
| First | Goods | 196,533,056.38 | Within 1 year | 36.91 | 98,266,528.19 |
| Second | Goods | 85,255,501.33 | Within 1 year | 16.01 | 42,627,750.67 |
| Third | Goods | 44,711,746.41 | Within 1 year | 8.4 | 22,355,873.21 |
| Fourth | Goods | 42,398,221.61 | Within 1 year | 7.96 | 21,199,110.81 |
| Fifth | Goods | 24,205,117.48 | Within 1 year | 4.55 | 12,102,558.74 |
| Total | 39313,643.21 | 73.82 | 196,551,821.61 |
| Aging | Closing balance | Opening balance | ||
| Amount | Proportion % | Amount | Proportion % | |
| Within 1 year | 132,181,990.10 | 98.25% | 226,726,744.30 | 98.99% |
1-2 years
| 1-2 years | 2,313,164.78 | 1.72% | 2,263,886.85 | 0.99% |
| Over 3 years | 38,160.00 | 0.03% | 38,160.00 | 0.02% |
| Total | 134,533,314.88 | -- | 229,028,791.15 | -- |
| Name | Balance in year-end | Proportion % |
| First | 48,688,000.00 | 36.19 |
| Second | 48,600,000.00 | 36.12 |
| Third | 15,989,512.58 | 11.89 |
| Fourth | 5,460,517.24 | 4.06 |
| Fifth | 3,011,939.75 | 2.24 |
| Total | 121,749,969.57 | 90.50 |
| Items | Closing balance | Opening balance |
| Interest receivable | 7,067,282.69 | 5,589,704.44 |
| Other accounts receivable | 7,498,823.53 | 9,257,192.06 |
| Total | 14,566,106.22 | 14,846,896.50 |
| Items | Closing balance | Opening balance |
| Fixed deposit | 867,156.10 | 1,302,963.56 |
| Structure deposit | 6,200,126.59 | 4,286,740.88 |
| Total | 7,067,282.69 | 5,589,704.44 |
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
| Nature | Closing book balance | Opening book balance |
| Customs bond | 101,758.24 | |
| Export rebate | 1,556,952.58 | 3,140,110.71 |
| Unit account | 14,957,706.87 | 15,451,643.71 |
| Deposit | 1,454,844.79 | 1,875,008.00 |
| Reserve fund and staff loans | 723,581.27 | 506,154.77 |
| Other | 4,540,265.50 | 4,227,892.82 |
| Total | 23,233,351.01 | 25,302,568.25 |
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 1,652,090.82 | 14,393,285.37 | 16,045,376.19 | |
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
| Turn back in the current period | 310,848.71 | 310,848.71 | ||
| Balance as at June 30 | 1,341,242.11 | 14,393,285.37 | 15,734,527.48 |
| Aging | Closing balance |
Within 1 year(Including 1 year）
| Within 1 year(Including 1 year） | 6,151,387.34 |
| Including：Subtotal within 1 year | 6,151,387.34 |
| 1-2 years | 659,376.54 |
| 2-3 years | 2,034,578.96 |
| Over 3 years | 14,388,008.17 |
| 3-4 years | 600,709.97 |
| 4-5 years | 625,372.54 |
| Over 5 years | 13,161,925.66 |
| Total | 23,233,351.01 |
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Accrual of bad debt provision by portfolio | 1,652,090.82 | 310,848.71 | 1,341,242.11 | |
| Accrual of bad debt provision by single item | 14,393,285.37 | 14,393,285.37 | ||
| Total | 16,045,376.19 | 310,848.71 | 15,734,527.48 | |
| Aging | Closing balance | ||
| 238,838,915.04 | Provision for bad debts | Expected loss rate（%） | |
| Within 1 year | 6,151,387.34 | 307,569.37 | 5.00 |
| 1-2 years | 659,376.54 | 65,937.65 | 10.00 |
| 2-3 years | 234,578.96 | 70,373.69 | 30.00 |
| Over 3 years | 1,794,722.80 | 897,361.40 | 50.00 |
| Total | 8,840,065.64 | 1,341,242.11 | |
(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| First | Unit account | 11,389,044.60 | Over 5 years | 49.02% | 11,389,044.60 |
| Second | Estimated tax | 2,857,902.98 | Within 1 year | 12.30% | 142,895.15 |
| Third | Unit account | 1,800,000.00 | 2-3 years | 7.75% | 1,800,000.00 |
| Fourth | Export rebate | 1,556,952.58 | Within 1 year | 6.70% | 77,847.63 |
| Fifth | Deposit | 980,461.06 | Over 5 years | 4.22% | 490,230.53 |
| Total | -- | 18,584,361.22 | -- | 79.99% | 13,900,017.91 |
| 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 | 205,355,616.56 | 8,721,102.80 | 196,634,513.76 | 164,096,057.16 | 14,452,368.67 | 149,643,688.49 |
| Processing products | 8,955,036.59 | 8,955,036.59 | 3,895,184.01 | 3,895,184.01 | ||
Stock goods
| Stock goods | 377,999,151.32 | 68,425,166.10 | 309,573,985.22 | 360,461,266.75 | 74,247,420.48 | 286,213,846.27 |
| Total | 592,309,804.47 | 77,146,268.90 | 515,163,535.57 | 528,452,507.92 | 88,699,789.15 | 439,752,718.77 |
| Items | Year-beginning balance | Increase | Decrease | Year-end balance | ||
| Withdrawal | Other | Reverse or write-off | Other | |||
| Raw materials | 14,452,368.67 | 2,995,690.34 | 8,726,956.21 | 8,721,102.80 | ||
| Processing products | 74,247,420.48 | 18,998,617.05 | 24,820,871.43 | 68,425,166.10 | ||
| Stock goods | 88,699,789.15 | 21,994,307.39 | 33,547,827.64 | 77,146,268.90 | ||
| Total | ||||||
13. Other current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
| Items | Year-end balance | Year-beginning balance |
| After the deduction of input VAT | 89,787,160.89 | 99,797,959.30 |
| Total | 89,787,160.89 | 99,797,959.30 |
Investees
| Investees | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Decrease in investment | Profits and losses on investments Recognized under the equity method | Other comprehensive income | Changes in other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Haohao Property Leasing Co., Ltd. | 5,641,139.93 | 637,149.72 | 2,000,000.00 | 4,278,289.65 | |||||||
| Anhui Huapeng Textile Co.,Ltd. | 11,784,626.51 | -912,673.03 | 10,871,953.48 | ||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 65,503,360.10 | -520,438.51 | 0.00 | 67,584,497.83 | 132,567,419.42 | ||||||
| Subtotal | 17,425,766.44 | 65,503,360.10 | -795,961.83 | 2,000,000.00 | 67,584,497.83 | 147,717,662.55 | |||||
| 2. Affiliated Company | |||||||||||
| Shenzhen Changlianfa Printing & dyeing Company | 2,234,057.19 | 82,115.91 | 2,316,173.10 | ||||||||
| Jordan Garment Factory | 2,363,614.70 | -202,853.11 | 674,303.17 | 2,835,064.76 | |||||||
| Hongkong Yehui International Co., Ltd. | 10,928,647.33 | -197,358.53 | 132,938.37 | 10,864,227.17 | |||||||
Subtotal
| Subtotal | 15,526,319.22 | -318,095.72 | 807,241.54 | 16,015,465.03 | |||||||
| Total | 32,952,085.66 | 65,503,360.10 | -1,114,057.55 | 807,241.54 | 2,000,000.00 | 67,584,497.83 | 163,733,127.58 |
| Items | Year-end balance | Year-beginning balance |
| Fuao auto parts co., Ltd. | 6,444,721.42 | 5,119,896.46 |
| Shenzhen Guanhua Printing & Dyeing Co., Ltd | 432,981.70 | |
| Union Development Group Co., Ltd. | 152,493,600.00 | 152,493,600.00 |
| Shenzhen Xiangjiang Trade Co., Ltd. | 1,559,890.79 | 1,559,890.79 |
| Shenzhen Xinfang Knitting Co., Ltd. | 2,227,903.00 | 2,227,903.00 |
| Shenzhen Dailishi Underwear Co., Ltd. | 12,315,939.61 | 12,315,939.61 |
| Shenzhen South Textile Co., Ltd. | 13,464,991.17 | 13,464,991.17 |
| Shenzhen Xieli Auto Co., Ltd. | 25,760,086.27 | 25,760,086.27 |
| Changxing Junying Investment Partnership | 28,500,000.00 | 28,500,000.00 |
| Total | 242,767,132.26 | 241,875,289.00 |
| Name | Recognized dividend income | Accumulating income | Accumulating losses | Amount of other comprehensive income transferred to retained earnings | Reasons for being measured at fair value and whose changes are included in other comprehensive income | Reasons for other comprehensive income transferred to retained earning |
| Fuao auto parts co., Ltd. | 739,299.75 | 2,064,124.71 | Long-term holding | |||
| Union Development Group Co., Ltd. | 20,244,553.13 | 170,138,153.13 | Long-term holding | |||
| Shenzhen Xiangjiang Trade Co., Ltd. | 1,087,413.21 | 2,487,304.00 | Long-term holding | |||
| Shenzhen | 200,000.00 | 1,903,903.00 | Long-term |
Xinfang KnittingCo., Ltd.
| Xinfang Knitting Co., Ltd. | holding | |||||
| Shenzhen Dailishi Underwear Co., Ltd. | 500,000.00 | 10,256,083.35 | Long-term holding | |||
| Shenzhen South Textile Co., Ltd. | 13,171,837.71 | 24,604,164.08 | Long-term holding | |||
| Shenzhen Xieli Auto Co., Ltd. | 1,810,409.14 | 23,326,789.97 | Long-term holding | |||
| Changxing Junying Investment Partnership | 2,150,943.40 | 2,150,943.40 | Long-term holding |
| Items | House, Building | Land use right | Construction in process | Total |
| I. Original price | ||||
| 1. Balance at period-beginning | 309,234,260.74 | 309,234,260.74 | ||
| 2.Increase in the current period | ||||
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | ||||
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | 52,051,000.00 | 52,051,000.00 |
（1）Dispose
| （1）Dispose | ||||
| （2）Other out | 52,051,000.00 | 52,051,000.00 | ||
| 4. Balance at period-end | 257,183,260.74 | 257,183,260.74 | ||
| II.Accumulated amortization | ||||
| 1.Opening balance | 141,236,318.76 | 141,236,318.76 | ||
| 2.Increased amount of the period | 3,872,485.12 | 3,872,485.12 | ||
| (1) Withdrawal | 3,872,485.12 | 3,872,485.12 | ||
| 3.Decreased amount of the period | 4,120,704.04 | 4,120,704.04 | ||
| （1）Dispose | ||||
| （2）Other out | 4,120,704.04 | 4,120,704.04 | ||
| 4. Balance at period-end | 140,988,099.84 | 140,988,099.84 | ||
| III. Impairment provision | ||||
| 1. Balance at period-beginning | ||||
| 2.Increased amount of the period | ||||
| (1) Withdrawal | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | ||||
| IV.Book value | ||||
| 1.Book value at period -end | 116,195,160.90 | 116,195,160.90 | ||
| 2.Book value at period-beginning | 167,997,941.98 | 167,997,941.98 |
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
Not applicable
21. Fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Fixed assets | 934,227,780.28 | 987,876,247.55 |
| Liquidation of fixed assets | 8,472.84 | |
| Total | 934,236,253.12 | 987,876,247.55 |
| Items | Houses & buildings | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1.Opening balance | 548,584,026.60 | 1,011,061,597.26 | 9,997,715.53 | 30,466,523.80 | 1,600,109,863.19 |
| 2.Increased amount of the period | 254,545.45 | 1,253,362.07 | 303,879.37 | 733,738.03 | 2,545,524.92 |
| (1) Purchase | 254,545.45 | 55,172.42 | 140,143.83 | 449,861.70 | |
| (2) Transferred from construction in progress | 1,198,189.65 | 303,879.37 | 593,594.20 | 2,095,663.22 | |
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | 1,488,857.00 | 114,940.62 | 1,603,797.62 | ||
| （1）Disposal | 1,488,857.00 | 114,940.62 | 1,603,797.62 | ||
| 4. Balance at | 548,838,572.05 | 1,010,826,102.33 | 10,301,594.90 | 31,085,321.21 | 1,601,051,590.49 |
period-end
| period-end | |||||
| II. Accumulated depreciation | |||||
| 1.Opening balance | 130,575,792.68 | 459,920,510.02 | 3,719,028.75 | 17,008,251.34 | 611,223,582.79 |
| 2.Increased amount of the period | 9,785,532.00 | 44,646,776.21 | 353,654.09 | 1,315,398.38 | 56,101,360.68 |
| (1) Withdrawal | 9,785,532.00 | 44,646,776.21 | 353,654.09 | 1,315,398.38 | 56,101,360.68 |
| 3.Decrease in the reporting period | 1,419,244.29 | 91,921.82 | 1,511,166.11 | ||
| （1）Disposal | 1,419,244.29 | 91,921.82 | 1,511,166.11 | ||
| 4.Closing balance | 140,361,324.68 | 503,148,041.94 | 4,072,682.84 | 18,231,727.90 | 665,813,777.36 |
| III. Impairment provision | |||||
| 1.Opening balance | 1,004,032.85 | 6,000.00 | 1,010,032.85 | ||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | |||||
| （1）Disposal | |||||
| 4. Closing balance | 1,004,032.85 | 6,000.00 | 1,010,032.85 | ||
| IV. Book value | |||||
| 1.Book value of the period-end | 407,473,214.52 | 507,678,060.39 | 6,228,912.06 | 12,847,593.31 | 934,227,780.28 |
| 2.Book value of the period-begin | 417,004,201.07 | 551,141,087.24 | 6,278,686.78 | 13,452,272.46 | 987,876,247.55 |
(2) Fixed assets temporarily idled
Not applicable
(3) Fixed assets rented by finance leases
Not applicable
(4) Fixed assets leased in the operating leases
Not applicable
(5) Fixed assets without certificate of title completed
Not applicable
（6）Liquidation of fixed assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Scrap cleaning of Composite Printer | 8,472.84 | 0.00 |
| Total | 8,472.84 |
| Items | Year-end balance | Year-beginning balance |
| Construction in progress | 94,993,015.59 | 15,621,286.64 |
| Total | 94,993,015.59 | 15,621,286.64 |
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for devaluation | Book Net value | Book balance | Provision for devaluation | Book Net value | |
| Industrialization project of polaroid for super | 85,275,840.93 | 85,275,840.93 | 9,080,815.92 | 9,080,815.92 | ||
large size TV
| large size TV | ||||||
| Other | 9,717,174.66 | 9,717,174.66 | 6,540,470.72 | 6,540,470.72 | ||
| Total | 94,993,015.59 | 94,993,015.59 | 15,621,286.64 | 15,621,286.64 |
| 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 |
| 2500mm width production line | 1,959,500,000.00 | 9,080,815.92 | 76,195,025.01 | 85,275,840.93 | Other | |||||||
| Total | 1,959,500,000.00 | 9,080,815.92 | 76,195,025.01 | 85,275,840.93 | -- | -- | -- |
26. Intangible assets
(1) Information
In RMB
| Items | Land use right | Patent right | Non-proprietary technology | Software | Total | |
| I. Original price | ||||||
| 1. Balance at period-beginning | 48,822,064.61 | 11,825,200.00 | 2,936,607.54 | 63,583,872.15 | ||
| 2.Increase in the current period | ||||||
| (1) Purchase | ||||||
| （2）Internal R & D | ||||||
| （3）Increased of Enterprise Combination | ||||||
| 3.Decreased amount of the period | 563,825.61 | 563,825.61 | ||||
| （1）Disposal | ||||||
| （2）Other | 563,825.61 | 563,825.61 | ||||
| 4. Balance at period-end | 48,258,239.00 | 11,825,200.00 | 2,936,607.54 | 63,020,046.54 | ||
| II.Accumulated amortization | ||||||
| 1. Balance at period-beginning | 12,243,972.52 | 11,825,200.00 | 1,633,883.78 | 25,703,056.30 | ||
| 2. Increase in the current period | 463,884.36 | 225,607.57 | 689,491.93 | |||
| (1) Withdrawal | 463,884.36 | 225,607.57 | 689,491.93 | |||
| 3.Decreased amount of the period | 563,825.61 | 563,825.61 | ||||
| （1）Disposal | ||||||
| （2）Other | 563,825.61 | 563,825.61 | ||||
| 4. Balance at period-end | 12,144,031.27 | 11,825,200.00 | 1,859,491.35 | 25,828,722.62 | ||
| 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. Balance at period-end | |||||
| 4. Book value | |||||
| 1.Book value at period -end | 36,114,207.73 | 1,077,116.19 | 37,191,323.92 | ||
| 2.Book value at period-beginning | 36,578,092.09 | 1,302,723.76 | 37,880,815.85 |
| 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., Ltd | 9,614,758.55 | 9,614,758.55 | ||||
| Total | 11,864,346.37 | 11,864,346.37 | ||||
29. Long term amortize expenses
In RMB
| Items | Balance in year-begin | Increase in this period | Amortized expenses | Other loss | Balance in year-end |
| Renovation fee | 985,691.64 | 1,394,907.13 | 290,327.30 | 0.00 | 2,090,271.47 |
| Other | 500,517.39 | 44,606.09 | 60,251.68 | 484,871.80 | |
| Total | 1,486,209.03 | 1,439,513.22 | 350,578.98 | 2,575,143.27 |
| 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 | 18,727,722.20 | 4,681,930.55 | 18,197,325.09 | 4,549,331.27 |
| Unattained internal sales profits | 2,546,979.00 | 382,046.85 | 2,591,536.27 | 388,730.44 |
| Temporary difference formed by the interest of share incentive repurchase | 571,844.26 | 142,961.06 | ||
| Changes in fair value of available for sale financial assets | 2,495,876.89 | 623,969.22 | 3,820,701.85 | 955,175.46 |
| Total | 23,770,578.09 | 5,687,946.62 | 25,181,407.47 | 6,036,198.23 |
| Items | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Changes in fair value of investments in other equity instruments | 264,086,001.96 | 66,021,500.49 | 196,501,504.12 | 49,125,376.03 |
Total
| Total | 264,086,001.96 | 66,021,500.49 | 196,501,504.12 | 49,125,376.03 |
| Items | Trade-off between the deferred income tax assets and liabilities | End balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 5,687,946.62 | 6,036,198.23 | ||
| Deferred income tax liabilities | 66,021,500.49 | 49,125,376.03 |
| Items | Balance in year-end | Balance in year-begin |
| Deductible temporary difference | 114,494,850.00 | 128,283,915.49 |
| Deductible loss | 606,745,605.60 | 562,435,574.75 |
| Total | 721,240,455.60 | 690,719,490.24 |
| Year | Balance in year-end | Balance in year-begin | Remark |
| 2020 | 703,241.36 | 703,241.36 | |
| 2021 | 3,880,135.73 | 3,880,135.73 | |
| 2023 | 129,226,944.33 | 129,226,944.33 | |
| 2024 | 148,095,898.11 | 148,095,898.11 | |
| 2025 | 83,287,153.64 | 83,287,153.64 | |
| 2026 | 120,820,767.06 | 120,820,767.06 | |
| 2028 | 76,421,434.52 | 76,421,434.52 | |
| 2029 | 44,310,030.85 | ||
| Total | 606,745,605.60 | 562,435,574.75 | -- |
□ Yes √No
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Advance payment for equipment fund | 148,843,296.00 | 152,688,087.18 |
| Dvance payment for technical services | 176,764,571.83 | 176,764,571.83 |
| Total | 325,607,867.83 | 329,452,659.01 |
| Items | Balance in year-end | Balance in year-Beginning |
| Credit borrowings | 50,837,730.76 | 411,522,111.40 |
| Total | 50,837,730.76 | 411,522,111.40 |
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 245,132,120.82 | 177,140,118.37 |
1-2 years
| 1-2 years | 1,506,049.28 | 2,059,842.85 |
| 2-3 years | 49,238.45 | 37,402.40 |
| 3-4 years | 37,402.40 | 35,075.05 |
| 4-5 years | 270,552.23 | 281,166.48 |
| Over 5 years | 731,537.05 | 685,847.75 |
| Total | 247,726,900.23 | 180,239,452.90 |
| Items | Balance in year-end | Balance in year-begin |
| Within 1 year | 24,126,360.37 | 119,293,518.44 |
| 1-2 years | 432,970.46 | 560,077.61 |
| 2-3 years | 227,835.39 | 210,330.74 |
| 3-4 years | ||
| 4-5 years | ||
| Over 5 years | 639,024.58 | 639,024.58 |
| Total | 25,426,190.80 | 120,702,951.37 |
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| I. Short –term wages | 32,506,267.08 | 70,261,369.72 | 78,386,426.73 | 24,381,210.07 |
| II. Welfare after waving of position-fixed provision scheme | 5,803,834.30 | 5,803,834.30 | ||
| Total | 32,506,267.08 | 76,065,204.02 | 84,190,261.03 | 24,381,210.07 |
| Items | Balance in year-begin | Increase in this period | decrease in this period | Balance in year-end |
| 1.Wages, bonuses, allowances and subsidies | 30,794,253.21 | 60,420,574.96 | 68,645,717.86 | 22,569,110.31 |
| 2.Employee welfare | 4,815,414.94 | 4,815,414.94 | ||
| 3. Social insurance premiums | 1,044,657.16 | 1,044,657.16 | ||
| Including：Medical insurance | 836,870.97 | 836,870.97 | ||
| Work injury insurance | 88,159.91 | 88,159.91 | ||
| Maternity insurance | 119,626.28 | 119,626.28 | ||
| 4. Public reserves for housing | 2,577,398.43 | 2,577,398.43 | ||
| 5.Union funds and staff education fee | 1,712,013.87 | 1,403,324.23 | 1,303,238.34 | 1,812,099.76 |
| Total | 32,506,267.08 | 70,261,369.72 | 78,386,426.73 | 24,381,210.07 |
| Items | Balance in year-begin | Increase in this period | decrease in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 4,884,610.17 | 4,884,610.17 | ||
| 2.Unemployment insurance | 92,168.12 | 92,168.12 | ||
| 3. Annuity payment | 827,056.01 | 827,056.01 | ||
| Total | 5,803,834.30 | 5,803,834.30 |
40.Tax Payable
In RMB
| Items | At end of term | At beginning of term |
| VAT | 443,530.70 | 793,392.58 |
| Enterprise Income tax | 7,261,559.44 | 6,198,704.39 |
| Individual Income tax | 383,031.06 | 160,823.58 |
| City Construction tax | 14,901.49 | 54,516.12 |
| House property tax | 2,954,221.68 | 204,941.07 |
| Educational surtax | 9,529.64 | 37,825.82 |
| Land VAT | 5,271,919.22 | |
| Other | 166,762.09 | 294,925.43 |
| Total | 16,505,455.32 | 7,745,128.99 |
| Items | At end of term | At beginning of term |
| Interest payable | 435,029.66 | 39,044,044.39 |
| Other | 170,702,934.76 | 189,971,235.59 |
| Total | 171,137,964.42 | 229,015,279.98 |
| Items | Balance in year-end | Balance in year-begin |
| Pay the interest for long-term loans by installments. | 37,220,662.08 | |
| Pay the interest for short-term loans by installments. | 435,029.66 | 1,823,382.31 |
| Total | 435,029.66 | 39,044,044.39 |
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Engineering Equipment fund | 55,299,112.56 | 62,574,657.07 |
| Unit account | 53,231,384.04 | 53,935,705.78 |
| Deposit | 25,872,902.45 | 25,481,743.17 |
| Restrictive stock repurchase obligation | 16,139,003.40 | 27,802,523.26 |
| Other | 20,160,532.31 | 20,176,606.31 |
| Total | 170,702,934.76 | 189,971,235.59 |
| Items | At end of term | At beginning of term |
| Long-term loans due within 1 year | 0.00 | 40,000,000.00 |
| Total | 40,000,000.00 |
| Items | At end of term | At beginning of term |
| Credit borrowings | 0.00 | 40,000,000.00 |
| Add：Long-term term borrowings due within 1 year | 0.00 | -40,000,000.00 |
46.Bond payable
（1）Bond payable
Not applicable
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetualcapital securities that classify as financial liabilityNot applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable
（4）Other financial instruments that are classified as financial liabilities
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
Not applicable
50. Estimates liabilities
Whether implemented new revenue guidelines?
□ Yes √No
51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Govemment Subsidy | 137,991,698.33 | 103,317.00 | 8,678,248.44 | 129,416,766.89 | |
| Total | 137,991,698.33 | 103,317.00 | 8,678,248.44 | 129,416,766.89 | -- |
| 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 | 571,428.57 | 71,428.58 | 499,999.99 | Related to assets | ||||
| High-tech Industrialization demonstration projects | 200,000.00 | 100,000.00 | 100,000.00 | Related to assets | ||||
| National grant funds for new flat panel display industry | 1,000,000.00 | 500,000.00 | 500,000.00 | Related to assets | ||||
| Grant funds for TFT-LCD polarizer industry project | 4,333,333.34 | 649,999.97 | 3,683,333.37 | Related to assets | ||||
| Grant funds for TFT-LCD polarizer narrow line (line 5) project | 2,000,000.00 | 250,000.02 | 0.00 | 1,749,999.98 | Related to assets | |||
| Purchase of imported equipment and technology | 677,016.78 | 87,545.09 | 589,471.69 | Related to assets | ||||
| Innovation and venture capital for TFT-LCD polarier I project | 200,000.00 | 25,000.04 | 174,999.96 | Related to assets | ||||
| Shenzhen polarizing materials and Technology Engineering Laboratory innovation venture capital | 312,500.00 | 25,000.02 | 287,499.98 | Related to assets | ||||
| Shenzzhen Engineering laboratory polarizing material and technical engineering | 3,125,000.00 | 250,000.02 | 2,874,999.98 | Related to assets | ||||
| Capital funding for Technology Center | 1,875,000.00 | 150,000.00 | 1,725,000.00 | Related to assets | ||||
| Subsidy funds to support the introduction of advanced technology | 57,552.41 | 7,194.00 | 50,358.41 | Related to assets | ||||
| Local supporting funds for TFT-LCD polarizer Phase II Project (line 6) | 14,250,000.00 | 750,000.00 | 13,500,000.00 | Related to assets | ||||
| State subsidy for TFT-LCD polarizer Phase II Project (line 6) | 9,500,000.00 | 500,000.00 | 9,000,000.00 | Related to assets | ||||
| Innovation and venture capital for TFT-LCD polarizer Phase II | 475,000.00 | 25,000.00 | 450,000.00 | Related |
Project (line 6)
| Project (line 6) | to assets | |||||||
| key technology research and development projects of optical compensation film for polarizer | 4,125,000.00 | 250,000.02 | 3,874,999.98 | Related to assets | ||||
| Strategic industries Development fund of Guangdong Province | 23,750,000.00 | 1,250,000.00 | 22,500,000.00 | Related to assets | ||||
| Grants of Purchase equipment of TFT-LCD polarizing film phase II project | 28,500,000.00 | 1,500,000.00 | 27,000,000.00 | Related to assets | ||||
| Energy saving transformation grant funds | 86,458.56 | 86,458.56 | Related to assets | |||||
| Old elevator renovation fund subsidies | 1,147,008.67 | 55,877.85 | 1,091,130.82 | Related to assets | ||||
| Polarization Industrialization Project for Super Large-sized TVs (Line 7) Central Budget Investment | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Research & development subsidy for key technologies of ultra-thin IPS polarizer for smart phone terminals | 2,000,000.00 | 2,000,000.00 | Related to assets |
| 5,000,000.00 | 5,000,000.00 | Related to assets | ||||||
| The ministry of industry and information technology, the ministry of finance, the circ first batch of new material application insurance compensation | 4,806,400.00 | 2,231,202.83 | 2,575,197.17 | Related to assets | ||||
| Compensation for land requisition by Longhua Street Office (factory wall) | 103,317.00 | 0.00 | 103,317.00 | Related to assets | ||||
| Total | 137,991,698.33 | 103,317.00 | 8,678,248.44 | 129,416,766.89 |
textile project management of the special funds" (Faigaiban [2006]2841), on December 2006, the Companyreceived "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau. The company will use 14years as asset depreciation period for amortization with the corresponding equipment in current period. Theamortization in accordance with the corresponding equipment, The other income in current period isRMB71,428.58, the ending balance of uncompleted amortization is RMB499,999.99 .
(2).According to the document of Shenzhen Municipal Development and Reform Commission 【2009】 No.416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial InternetSecurity Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing andConsultation Service of Information Security Industry and other National High-tech Industrial Base PlatformProjects”, on May 2009, the company received the Shenzhen Municipal Development and Reform Commissionhigh-tech industrialization demonstration project supporting Capital RMB 2 million allocated by Shenzhen CityBureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for TFT-LCD”.Ourcompany 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 RMB100,000.00.
(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 SpecialProject” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidiesRMB 10,000,000.00 from the State Development and Reform Commission New Flat-Panel DisplayIndustrialization 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 StateDevelopment 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 RMB500,000.00.
(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 RMB 3,683,333.37.
(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 RMB1,749,999.98.
(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 RMB 589,471.69.
(7) On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCDpolarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The non-operating income in current period is RMB25,000.04 and the balance amount ofunfinished final amortization is RMB174,999.96 .
(8) On December 2013，The company received the funds for innovation and entrepreneurship of TFT-LCDpolarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matchingfunding category),the Company planned to amortize the subsidy over 10 years according to the depreciationperiod of relevant assets. The non-operating income in current period is RMB25,000.02 and the balance amount ofunfinished final amortization is RMB 287,499.98 .
(9) 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 RMB 2,874,999.98 .
(10) According to the “Announcement on the Identification of Technology Centers of 24 Enterprises includingShenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research andDevelopment Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center ofSAPO has been regarded as 2012 annual municipal R&D center. In December 2013, the company has receivedthe funding subsidy of RMB3 million for the construction of the technical center. the Company planned toamortize the subsidy over 10 years according to the depreciation period of relevant assets. The non-operatingincome in current period is RMB150,000.00 and the balance amount of unfinished final amortization is RMB
1,725,000.00.
(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 RMB50,358.41.
(12)According to the "Shenzhen Municipal Development and Reform Commission Reply for SAPO applicationfor local matching funds of TFT-LCD polarizing film II project (Line 6) " (Shenzhen DRC [2013]No. 1771), thecompany obtained TFT-LCD polarizing film II project (line 6) local matching funds of RMB 15,000,000.00 inApril 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixedassets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 750,000.00 wasincluded into other incomes in the current period and the ending outstanding balance was RMB 13,500,000.00 .
(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 RMB10,000,000.00 in December 2014. TFT-LCD polarizer Phase II project (Line 6) hit the expected available stateand transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets,RMB 500,000.00 was included into other incomes in the current period and the ending outstanding balance wasRMB 9,000,000.00.
(14) In December 2014, the company received innovation venture capital (matching funding category) forPing Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB500,000.00. TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and transferred to fixedassets in June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 25,000.00 wasincluded into other incomes in the current period and the ending outstanding balance was RMB450,000.00.
(14)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 isRMB3,874,999.98.
(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,OnDecember 2015, the Company received RMB20 million of the pilot project fund( period II project of TFT-LCDpolarizer).On October 2016, the Company received RMB 5 million of Shenzhen strategic emerging industriesand the future development of industrial matching funds, TFT-LCD polarizer Phase II project (Line 6) hit theexpected available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years indepreciation of relevant assets, RMB 1,250,000.00 was included into other incomes in the current period and theending outstanding balance was RMB 22,500,000.00.
(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 DevelopmentCommission of Shenzhen Municipality [2013]No.1449) , the Company received 30 million RMB of newproduction line of TFT-LCD polarizer project period II and equipment purchase subsidy in August2015 ,December 2015 and September 2016. TFT-LCD polarizer Phase II project (Line 6) hit the expectedavailable state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation ofrelevant assets, RMB 1,500,000.00 was included into other incomes in the current period and the endingoutstanding balance was RMB 27,000,000.00.
(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 86,458.56.
(19). In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the companyreceived 325,380.00 yuan for the old elevator upgrade subsidy in 2018, the Other income was RMB 55,877.85 at thecurrent period, the ending balance without amortization was RMB 1,091,130.82.
(20) 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.
(21) In accordance with the development plans and policies of Shenzhen Municipality for Strategic emergingIndustries, the Management Measures of Shenzhen City on Funds for Scientific and Technological Research andDevelopment, the Management Measures of Shenzhen City on Science and Technology Plan Project and otherrelevant documents, Shenzhen Science and Technology Innovation Commission and SAPO 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.
(22). According to Measures for Management of Science and Technology Research & Development Funds inShenzhen, Measures for Management of Projects in Shenzhen Municipal Science and Technology Program andother documents concerned, SAPO and Shenzhen Science and Technology Innovation Committee entered into aContract of Projects in Shenzhen Municipal Science and Technology Program through consultation to completedevelopment of key techniques for high-performance polarizers for 2018N007 jumbo display panels in theprogram delivered in Shen Fa Gai [2018] No.324 document. The Company was granted with a financial subsidyof RMB 5,000,000.00 this year. The Company amortized and transferred the deferred income into the currentprofit and loss by period of depreciation after relevant assets hit the expected available state.
(23). Compliance with the document spirit of the Notice of Ministry of Industry and Information Technology,Ministry of Finance and China Insurance Regulatory Commission on Piloting an Insurance Compensation
Mechanism for the First Batch of Key New Materials (Gong Xin Bu Lian Yuan [2017] No.222 document). InDecember 2018, the Company received a relevant premium subsidy of RMB 4,806,400.00 from the Ministry ofIndustry, In the current period, the sales expenses will be reduced of RMB 2,231,202.83, the ending balancewithout amortization was RMB 2,575,197.17.
24. During the reporting period, Longhua district subdistrict office received RMB103,317.00 of compensation
fund for land requisition, which had not been amortized by the end of the reporting period.
52. Other non-current liabilities
Whether implemented new revenue guidelines?
□ Yes √No
53.Stock capital
In RMB
| Year-beginning balance | Changed（+，-） | Balance in year-end | |||||
| Issuance of new share | Bonus shares | Capitalization of public reserve | Other | Subtotal | |||
| Total of capital shares | 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 | 16,755,996.09 | 16,755,996.09 | ||
| Total | 1,865,716,983.63 | 1,865,716,983.63 |
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
Treasurpy stock-A share
| Treasurpy stock-A share | 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 incurred before income tax | Less：Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| 1. Other comprehensive income that cannot be reclassified in the loss and gain in the future | 147,376,128.10 | 51,249,010.40 | 0.00 | 51,249,010.40 | 198,625,138.50 | |||
| Changes in fair value of investments in other equity instruments | 51,249,010.40 | 51,249,010.40 | 51,249,010.40 | |||||
| Accounting policy adjustment | 147,376,128.10 | 147,376,128.10 | ||||||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | 1,339,208.41 | 807,241.54 | 807,241.54 | 2,146,449.95 | ||||
| Translation differences of financial statements denominated | 1,339,208.41 | 807,241.54 | 807,241.54 | 2,146,449.95 | ||||
| Total of other comprehensive income | 148,715,336.51 | 52,056,251.94 | 52,056,251.94 | 200,771,588.45 | ||||
59. Surplus reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 80,004,803.23 | 80,004,803.23 | ||
| Total | 80,004,803.23 | 80,004,803.23 |
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | -57,774,473.41 | -32,266,087.44 |
| Retained earnings after adjustments at the year end | -57,774,473.41 | -32,266,087.44 |
| Add: Net profit attributable to owners of the Company for the period | 7,832,287.98 | -22,980,624.93 |
| Less: Appropriation to statutory surplus reserve | 2,527,761.04 | |
| Retained profits at the period end | -49,942,185.43 | -57,774,473.41 |
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,006,315,551.63 | 938,514,710.11 | 471,407,964.26 | 412,583,996.50 |
| Other business | 2,547,743.87 | 2,072,800.62 | 2,854,444.31 | 2,508,961.83 |
| Total | 1,008,863,295.50 | 940,587,510.73 | 474,262,408.57 | 415,092,958.33 |
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 290,794.73 | 293,239.29 |
| Education surcharge | 212,086.40 | 210,850.54 |
Property tax
| Property tax | 2,826,536.51 | 2,891,819.92 |
| Land use tax | 98,031.18 | 176,423.79 |
| vehicle and vessel usage tax | 3,960.00 | 3,960.00 |
| Stamp tax | 458,231.50 | 260,786.33 |
| Other | 7,856.46 | 3,476.25 |
| Total | 3,897,496.78 | 3,840,556.12 |
| Items | Amount of current period | Amount of previous period |
| Wage | 1,605,556.15 | 1,477,791.73 |
| Transportation changes | 2,580,690.13 | 1,402,849.04 |
| Exhibition fee | 131,576.37 | 124,705.56 |
| Business expenses | 187,361.86 | 214,533.49 |
| Samples and product loss | 359,519.68 | 179,001.34 |
| Property insurance | 2,231,202.83 | 0.00 |
| Other | 273,897.50 | 381,530.37 |
| Total | 7,369,804.52 | 3,780,411.53 |
| Items | Amount of current period | Amount of previous period |
| Wage | 22,919,081.61 | 23,605,838.32 |
| Depreciation of fixed assets | 6,383,207.78 | 4,788,853.45 |
| Water and electricity | 1,281,518.80 | 2,017,209.50 |
| Intangible assets amortization | 689,491.93 | 648,185.46 |
| Travel expenses | 738,353.90 | 512,976.10 |
| Office expenses | 342,201.90 | 515,020.20 |
| Business entertainment | 465,456.54 | 485,191.77 |
| Lawsuit expenses | 196,500.00 | 0.00 |
| Repair charge | 1,031,667.72 | 1,804,835.86 |
Property insurance
| Property insurance | 102,845.11 | 123,836.06 |
| Low consumables amortization | 18,322.00 | 9,731.00 |
| Board fees | 1,341.50 | 54,119.00 |
| Agency expenses | 4,393,993.81 | 1,639,670.22 |
| Other | 4,337,897.08 | 5,033,652.79 |
| Tax | 42,901,879.68 | 41,239,119.73 |
| Items | Amount of current period | Amount of previous period |
| Wage | 6,498,554.63 | 5,909,039.37 |
| Material | 10,185,129.50 | 13,348,329.15 |
| Depreciation | 1,371,404.00 | 1,230,035.43 |
| Fuel & Power | 763,053.12 | 413,784.82 |
| Travel expenses | 201,113.88 | 165,089.52 |
| Other | 153,133.07 | 122,821.53 |
| Total | 19,172,388.20 | 21,189,099.82 |
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 3,783,883.97 | 3,428,083.94 |
| Interest income | -15,744,104.66 | -13,277,267.58 |
| Exchange loss | 9,972,336.73 | 4,824,219.83 |
| Fees and other | 1,257,196.02 | 1,172,376.15 |
| Total | -730,687.94 | -3,852,587.66 |
67.Other income
In RMB
| Items | Amount of current period | Amount of previous period |
| Govemment Subsidy | 11,035,139.06 | 5,812,167.76 |
| Items | Amount of this period | Amount of last period |
| Investment income from the disposal of long-term equity investment | -1,114,057.55 | 616,945.67 |
| Dividend income from investments in other equity instruments during the holding period | 908,000.00 | |
| Hold the investment income during from available-for-sale financial assets | 574,774.15 | |
| Trust income | 0.00 | 27,360,990.33 |
| Total | -206,057.55 | 28,552,710.15 |
| Items | Amount of this period | Amount of last period |
| Loss of bad debts in other receivables | 310,848.71 | |
| Loss of bad accounts receivable | 2,022,916.27 | |
| Total | 2,333,764.98 |
Items
| Items | Amount of current period | Amount of previous period |
| Losses on bad debt | -278,909.76 | |
| Loss of inventory price | -21,259,451.35 | -17,115,422.28 |
| Total | -21,259,451.35 | -17,394,332.04 |
| Items | Amount of current period | Amount of previous period |
| Gains & losses on foreign investment in fixed assets | 12,301,144.92 | |
| Gains& losses on the disposal of fixed assets | -64,458.67 | |
| Total | 12,236,686.25 |
| 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 | ||
| Gains from disposal of non-current assets | 24,597.81 | ||
| Return insurance settlement income | 4,033,846.00 | 4,033,846.00 | |
| Other | 213,415.65 | 10,301.15 | 213,415.65 |
| Total | 4,247,261.65 | 89,905.17 | 4,247,261.65 |
| 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 Social Security | Subsidy | No | No | 55,009.21 | Relate to income |
Bureau
Bureau
75.Non-current expenses
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Non-current asset Disposition loss | 43,338.08 | ||
| Other | 6,092.62 | 110,000.00 | 6,092.62 |
| Total | 6,092.62 | 153,338.08 | 6,092.62 |
| Items | Amount of current period | Amount of previous period |
| Current income tax expense | 9,599,442.08 | 5,972,581.36 |
| Deferred income tax expense | 173,565.75 | -650,716.83 |
| Total | 9,773,007.83 | 5,321,864.53 |
| Items | Amount of current period |
| Total profits | 4,046,153.95 |
| Income tax computed in accordance with the applicable tax rate | 1,011,538.50 |
| Effect of different tax rate applicable to the subsidiary Company | 3,472,144.47 |
| Influence of non taxable income | 150,265.11 |
| Impact of non-deductible costs, expenses and losses | 19,450.97 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -88,607.93 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 5,208,216.71 |
| Income tax expense | 9,773,007.83 |
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Government Subsidy | 11,035,139.06 | 5,396,000.00 |
| Bank deposit interest income and other | 18,080,774.86 | 20,764,799.70 |
| Total | 29,115,913.92 | 26,160,799.70 |
| Items | Amount of current period | Amount of previous period |
| R&D | 11,302,429.57 | 15,280,060.45 |
| Office Expense | 445,468.55 | 515,020.20 |
| Business fee | 730,785.55 | 699,725.26 |
| Travel expenses | 1,023,309.74 | 632,243.41 |
| Transportation fee | 2,580,960.13 | 1,402,849.04 |
| Agency Charge | 4,580,993.81 | 1,639,670.22 |
| Insurance expenses | 2,334,047.94 | 123,836.06 |
| Water and electricity | 2,293,665.75 | 2,017,209.50 |
| Rental fee | 1,031,667.72 | 1,804,835.86 |
| Refund deposit | 4,906,692.00 | 61,102.53 |
| Other | 764,041.43 | 1,403,743.74 |
| Total | 31,994,062.19 | 25,580,296.27 |
| Items | Amount of current period | Amount of previous period |
| Structured deposits, financial products, principal and income | 620,264,450.94 | 1,903,828,974.66 |
| Total | 620,264,450.94 | 1,903,828,974.66 |
| Items | Amount of current period | Amount of previous period |
Structure deposit investment
| Structure deposit investment | 985,495,790.87 | 1,830,500,000.00 |
| Total | 985,495,790.87 | 1,830,500,000.00 |
| Items | Amount of current period | Amount of previous period |
| Restricted stock of stock repurchase incentive object | 11,448,442.40 | 0 |
| Total | 11,448,442.40 | 0 |
| Items | Amount of current period | Amount of previous period |
| I. Adjusting net profit to cash flow from operating activities | -- | -- |
| Net profit | -5,726,853.88 | 4,558,099.13 |
| Add: Impairment loss provision of assets | -14,622,141.27 | -3,940,075.77 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 55,627,659.43 | 40,523,419.76 |
| Amortization of intangible assets | 689,491.93 | 620,162.74 |
| Amortization of Long-term deferred expenses | 350,578.98 | 155,136.82 |
| Loss on disposal of fixed assets, intangible assets and other long-term deferred assets | -12,236,686.25 | 43,338.08 |
| Financial expenses ("-" for income) | -730,687.94 | -3,852,587.66 |
| Investments losses ("-" for gains) | 206,057.55 | -28,152,710.15 |
| Decreases in the deferred income tax assets ("-" for increases) | 348,251.61 | -650,716.83 |
| Decreases in inventories ("-" for increases) | -63,857,296.55 | -45,300,979.12 |
| Decreases in operating receivables ("-" for | 110,200,333.49 | -78,431,655.56 |
increases)
| increases) | ||
| Increases in operating receivables（"-" for decreases） | -46,422,344.75 | -14,422,320.88 |
| Net cash flows from operating activities | 23,826,362.35 | -128,850,889.44 |
| 2、Significant investment and financing activities involving no cash receipts and payments | -- | -- |
| 3、Net change in cash and cash equivalents: | -- | -- |
| Closing balance of cash | 255,546,268.35 | 1,014,735,793.86 |
| Less: Opening balance of cash | 1,133,574,235.22 | 1,161,240,139.33 |
| Net increase in cash and cash equivalents | -878,027,966.87 | -146,504,345.47 |
| Items | Year-end balance | Year-beginning balance |
| I. Cash | 255,546,268.35 | 1,133,574,235.22 |
| Including：Cash at hand | 10,934.20 | 13,559.60 |
| Demand bank deposit | 257,097,913.26 | 1,133,556,630.43 |
| Demand other monetary funds | 4,052.27 | 4,045.19 |
| III. Balance of cash and cash equivalents at the period end | 255,546,268.35 | 1,133,574,235.22 |
| Items | Closing foreign currency | Exchange rate | Closing convert to RMB |
balance
| balance | balance | ||
| Monetary funds | -- | -- | |
| Including：USD | 1,271,180.24 | 6.87470 | 8,738,982.79 |
| Euro | |||
| HKD | 863,940.85 | 0.87970 | 760,008.77 |
| Yen | 993,624.00 | 0.063816 | 63,409.11 |
| Account payable | -- | -- | |
| Including：USD | 1,035,197.73 | 6.87470 | 7,116,673.85 |
| Euro | |||
| HKD | 278,280.00 | 0.87970 | 244,802.92 |
| Yen | |||
| Long-term borrowing | -- | -- | |
| Including：USD | |||
| Euro | |||
| HKD | |||
| Other receivable | |||
| Including：USD | 37,399.02 | 6.87470 | 257,107.04 |
| HKD | |||
| Yen | |||
| Account payable | |||
| Including：USD | 4,077,489.83 | 6.87470 | 28,031,519.34 |
| HKD | |||
| Yen | 1,443,783,619.98 | 0.063816 | 92,136,495.49 |
| Other payable | |||
| Including：USD | 812,419.50 | 6.87470 | 5,585,140.34 |
| HKD | 3,044.46 | 6.87470 | 2,667.56 |
| Yen | 38,255,692.33 | 0.063816 | 2,441,325.26 |
| Euro | 106,218.00 | 7.81700 | 830,306.11 |
| Short-term borrowing | |||
| Including：USD | 3,081,888.71 | 6.87470 | 21,187,060.31 |
| HKD | |||
| Yen | 464,627,530.00 | 0.063816 | 29,650,670.45 |
| Interest payable | |||
| Including：USD | 37,635.02 | 6.87470 | 258,729.47 |
HKD
| HKD | |||
| Yen | 2,762,632.97 | 0.063816 | 176,300.19 |
| Items | Amount | Project | Amount included in current profit and loss |
| Textile special funds | 2,000,000.00 | Other income | 71,428.58 |
| High-tech Industrialization demonstration projects | 2,000,000.00 | Other income | 100,000.00 |
| National grant fundsfor new flat panel display industry | 10,000,000.00 | Other income | 500,000.00 |
| Grant funds for TFT-LCD polarizer industry project | 13,000,000.00 | Other income | 649,999.97 |
| Grant funds for TFT-LCD polarizer narrow line (line 5) project | 5,000,000.00 | Other income | 250,000.02 |
| Purchase of imported equipment and technology | 1,750,902.00 | Other income | 87,545.09 |
| Innovation and venture capital for TFT-LCD polarier I project | 500,000.00 | Other income | 25,000.04 |
| Shenzhen polarizing materials and Technology Engineering Laboratory innovation venture capital | 500,000.00 | Other income | 25,000.02 |
| Shenzzhen Engineering laboratory polarizing material and technical engineering | 5,000,000.00 | Other income | 250,000.02 |
| Capital funding for Technology Center | 3,000,000.00 | Other income | 150,000.00 |
Subsidy funds to support the introduction of advanced technology
| Subsidy funds to support the introduction of advanced technology | 143,881.00 | Other income | 7,194.00 |
| Local supporting funds for TFT-LCD polarizer Phase II Project (line 6) | 15,000,000.00 | Other income | 750,000.00 |
| State subsidy for TFT-LCD polarizer Phase II Project (line 6) | 10,000,000.00 | Other income | 500,000.00 |
| Innovation and venture capital for TFT-LCD polarizer Phase II Project (line 6) | 500,000.00 | Other income | 25,000.00 |
| key technology research and development projects of optical compensation film for polarizer | 5,000,000.00 | Other income | 250,000.02 |
| Strategic industries Development fund of Guangdong Province | 5,000,000.00 | Other income | 1,250,000.00 |
| Grants of Purchase equipment of TFT-LCD polarizing film phase II project | 30,000,000.00 | Other income | 1,500,000.00 |
| Old elevator renovation fund subsidies | 325,380.00 | Other income | 55,877.85 |
| The ministry of industry and information technology, the ministry of finance, the circ first batch of new material application insurance compensation | 4,806,400.00 | Other income | 2,231,202.83 |
| Compensation for land requisition by Longhua Street Office (factory wall) | 103,317.00 | Other income | 0.00 |
| Name: Industrialization Project of Polarizer for Ultra Large Size TV (Line 7) | 30,000,000.00 | Other income | 0.00 |
| Research & development subsidy for key technologies of ultra-thin IPS polarizer for smart phone terminals | 2,000,000.00 | Other income | 0.00 |
| Finance committee of Shenzhen municipality (R&D of key | 5,000,000.00 | Other income | 0.00 |
technology of high-performancepolarizer for large size displaypanel of 2018N007)
| technology of high-performance polarizer for large size display panel of 2018N007) | |||
| Shenzhen Standard Special subsidy | 360,000.00 | Other income | 360,000.00 |
| Government subsidies related to income | 1,935,000.00 | Other income | 1,935,000.00 |
| Electricity subsidy | 61,890.62 | Other income | 61,890.62 |
| Total | 11,035,139.06 |
(6) Other notes:
Nil
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Not applicable
(2) Combination cost
Not applicable
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
Not applicable
3. Counter purchase
Not applicable
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
6.Other
Not applicableIX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
Shenzhen LishiIndustryDevelopment Co.,Ltd
| 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% | Purchase | |
| 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 | 100% | Establish |
| Name | Holding proportion of non-controlling interest | Profit or loss attributable to non-controlling interest | Dividend declared to non-controlling interest | Closing balance of non-controlling interest |
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | 40.00% | -13,559,141.86 | 0.00 | 1,072,348,399.88 |
| Subsidiaries | Closing balance | Beginning balance | ||||||||||
| Current assets | Non-current | Total assets | Current liabilities | Non-current | Total liabilities | Current assets | Non-current | Total assets | Current liabilities | Non-current | Total liabilities | |
assets
| assets | Liabilities | assets | Liabilities | |||||||||
| Shenzhen Shengbo Ophotoelectric Technology Co., Ltd | 1,769,421,245.90 | 1,386,310,959.94 | 3,155,732,205.84 | 369,764,378.24 | 127,739,177.53 | 497,503,555.77 | 2,309,727,042.47 | 1,362,868,246.21 | 3,672,595,288.68 | 843,110,812.37 | 136,186,802.53 | 979,297,614.90 |
| 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 | 893,168,312.79 | -35,069,023.71 | -35,069,023.71 | 73,481,662.86 | 392,382,938.55 | -13,141,819.59 | -13,141,819.59 | -123,066,997.41 |
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | The accounting treatment of investment in associates | |
| direct | indirect | |||||
| Shenzhen Haohao Property Leasing Co., Ltd. | Shenzhen | Shenzhen | Property leasing | 50.00% | Equity method | |
| 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 | |
| Anhui Huapeng Textile Co., Ltd. | Anhui | Anhui | Manufacturing | 50.00% | Equity method | |
| Shenzhen Printing & Dyeing Co., Ltd. | Shenzhen | Shenzhen | Property leasing | 50.16% | Equity method | |
| Closing balance/June 30, 2019 | Opening balance/June 30, 2018 | |
| Joint venture： | -- | -- |
| Total book value of the investment | 17,425,766.44 | 17,425,766.44 |
Total amount of the pro rata calculation ofthe following items
| Total amount of the pro rata calculation of the following items | -- | -- |
| -- Net profit | -1,588,603.47 | 393,860.77 |
| -- Total comprehensive income | -1,588,603.47 | 393,860.77 |
| Associated enterprise： | -- | -- |
| Total book value of the investment | 16,015,465.03 | 15,526,319.22 |
| Total amount of the pro rata calculation of the following items | -- | -- |
| --Net profit | -1,243,075.64 | 223,084.90 |
| --Other Comprehensive income | 807,241.54 | 120,349.15 |
| --Total comprehensive income | -435,834.10 | 343,434.05 |
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with thesefinancial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shallmanage and monitor these risks and ensure above risks to be controlled within certain scope.（I）Credit RiskThe credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bankdeposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For thereceivables, the company has developed the relevant policies to control the credit risk, and set up the correspondingdebt and credit limit after the credit status of debtor is evaluated based on financial condition of debtor, credit history,external ratings, possibility of guarantee obtained from the third party. Meanwhile, the company shall regularlymonitor the debtor’s credit history. With regard to the bad credit record for the debtor, the company shall adopt thewritten reminder, shortening or cancel of credit period to ensure the overall credit risks within the controllablescope.（II）Market riskMarket risk of financial instrument arises from changes in fair value or future cash flow of financial instrumentsaffected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interestrate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk ofthe fair value due to the financial liability of the fixed interest rate. The company shall determine the relativeproportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on theprice of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as possiblein order to reduce the foreign exchange risk.（III）Liquidity riskLiquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets.The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance,the marketable securities available to be cash and the rolling forecast for the future cash flow.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
| Items | Closing fair value | |||
| Fir value measurement items at level 1 | Fir value measurement items at level 2 | Fir value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
1. Financial assets measured at fair value
through profit or loss
| 1. Financial assets measured at fair value through profit or loss | 760,000,000.00 | 760,000,000.00 | ||
| Financial assets measured at fair value through changes in comprehensive income | 242,767,132.26 | 242,767,132.26 | ||
| Total of Consistent fair value measurement | 1,002,767,132.20 | 1,002,767,132.20 | ||
| II Inconsistent fair value measurement | -- | -- | -- | -- |
| Name | Registered address | Nature | Registered capital | The parent company of the Company's shareholding ratio | The parent company of the Company’s vote ratio |
| Shenzhen Investment Holdings Co.,Ltd. | 18/F, Investment Building, Shennan Road, Futian District, Shenzhen | Equity investment , Real-estate Development and Guarantee | 2,534,900.00 | 45.78% | 48.94% |
| 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 |
Shenzhen Guanhua Printing & Dyeing Co., Ltd.
| Shenzhen Guanhua Printing & Dyeing 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 |
| 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. | Sharing Company of Hangzhou Jinjiang Group Co., Ltd. |
| Shenzhen Xinfang Knitting Co., Ltd. | Sharing Company |
| Shenzhen Dailishi Underwear Co., Ltd. | 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 | 58,479,328.60 | 208,800,000.00 | No | 14,103,038.28 |
| Related parties | Content of related transaction | Amount of current period | Amount of previous period |
| Kunshan Zhiqimei Material Technology Co., Ltd. | Sales polarizer sheet | 79,108,319.24 | 0.00 |
| Shenzhen Tianma Microelectronics Co., Ltd. | Sales polarizer sheet | 740,904.84 | 1,166,047.31 |
(4) Related-party guarantee
Not applicable
(5) Inter-bank lending of capital of related parties：
Not applicable
(6) Related party asset transfer and debt restructuring
Not applicable
(7) Rewards for the key management personnel
In RMB
| Items | Amount of current period | Amount of previous period |
| Senior Excutive | 3,136,527.00 | 2,643,194.00 |
| 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. | 473,735.18 | 23,686.76 | 894,474.64 | 44,723.73 |
| Account receivable | Kunshan Zhiqimei | 87,255,501.33 | 4,362,775.07 | 84,062,627.96 | 4,203,131.40 |
Material TechnologyCo., Ltd.
| Material Technology Co., Ltd. | |||||
| 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. | 416,464.86 | 20,823.24 |
| Name | Related party | Amount at year end | Amount at year beginning |
| Account payable | Kunshan Zhiqimei Material Technology Co., Ltd. | 29,280,982.97 | 17,405,753.46 |
| 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 Changlianfa Printing and dyeing Co., Ltd. | 3,554,489.85 | 4,454,489.85 |
| Other payable | Yehui International Co.,Ltd. | 1,194,824.20 | 1,190,070.22 |
| Other payable | SAPO （Hongkong）Co., Ltd. | 315,000.00 | 315,000.00 |
| Interest payable | Shenzhen Shenchao Technology Investment Co., Ltd. | 0.00 | 37,220,662.08 |
| Other payable | Shenzhen Dailishi Underwear Co., Ltd. | 85,599.94 | 0.00 |
| 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 | 0.00 |
current period
| current period | |
| The scope of executive price of the company’s outstanding share options at the end of the period and the remaining term of the contract | 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 scope of executive price of the company’s other equity instruments at the end of the period and the remaining term of the contract | 0 |
| Restriction lifting period | Performance assessment goals |
| The first restriction lifting period | In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower than the 75 fractiles level of the comparable listed companies in the same industry; the growth rate of operating revenue in 2018 compared with 2016 is not less than 70%, and is not lower than the 75 fractiles level of comparable listed companies in the same industry; in 2018, the proportion of optical film business such as polarizers to operating revenue is no less than 70%. |
| The second restriction lifting period | In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the 75 fractiles level of the comparable listed companies in the same industry; the growth rate of operating revenue in 2019 compared with 2016 is not less than 130%, and is not lower than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the proportion of optical film business such as polarizers to operating revenue is not less than |
75%.
75%.The third restriction liftingperiod
| The third restriction lifting period | In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than the 75 fractiles level of comparable listed companies in the same industry; the growth rate of operating revenue in 2020 is not less than 200% compared to 2016, and is not lower than the 75 fractiles level of comparable listed companies in the same industry. In 2020, the proportion of optical film business such as polarizers to operating revenue will be no less than 80%. |
| Determination method of the fair value of equity instruments on the grant date | The closing price of the company's stock on grant date - grant price |
| Determination basis of the number of vesting equity instruments | On each balance sheet date of the waiting period, it is determined based on the latest information such as the change in the number of people that can be released from restrictions and the completion of performance indicators |
| Equity-settled share-based payment is included in the accumulated amount of capital reserve | 0.00 |
| Total amount of fees confirmed by equity-settled share-based payments in the current period | 0.00 |
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet dateNil
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be statedNil
3.Other
NilXV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
4. Notes of other significant events
NilXVI. Other significant eventsNil
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Accrual of bad debt provision by single item | ||||||||||
| Including： | ||||||||||
| Accrual of bad debt provision by portfolio | 594,006.80 | 100.00% | 29,700.34 | 5.00% | 564,306.46 | 570,471.80 | 100.00% | 28,523.59 | 5.00% | 541,948.21 |
| Including： | ||||||||||
| Total | 594,006.80 | 29,700.34 | 564,306.46 | 570,471.80 | 100.00% | 28,523.59 | 5.00% | 541,948.21 | ||
| Name | Closing balance | ||
| Book balance | Bad debt provision | Proportion | |
| Within 1 year | 594,006.80 | 29,700.34 | 5.00% |
| Including：Subtotal within 1 year | 594,006.80 | 29,700.34 | 5.00% |
| Total | 594,006.80 | 29,700.34 | -- |
| Aging | Closing balance |
| Within 1 year | 594,006.80 |
| Including：Subtotal within 1 year | 594,006.80 |
Total
| Total | 594,006.80 |
| Category | Opening balance | Amount of change in the current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | |||
| Accrual of bad debt provision by portfolio: | 28,523.59 | 1,176.75 | 29,700.34 | ||
| Total | 28,523.59 | 1,176.75 | 29,700.34 | ||
| Name | Closing balance | Proportion % | Balance of Bad debt provision |
| Shenfang Building and Peripheral rent | 594,006.80 | 100% | 29,700.34 |
| Items | Closing balance | Opening balance |
| Interest receivable | 6,737,221.93 | 4,974,799.47 |
| Other accounts receivable | 8,403,787.65 | 8,881,582.55 |
| Total | 15,141,009.58 | 13,856,382.02 |
（1）Interest receivable
1) Category of interest receivable
In RMB
| Items | Closing balance | Opening balance |
| Fixed deposit | 537,095.34 | 884,141.92 |
| Structure deposit | 6,200,126.59 | 4,090,657.55 |
| Total | 6,737,221.93 | 4,974,799.47 |
| Nature | Closing book balance | Opening book balance |
| Internal current account | 8,575,600.00 | 8,578,542.00 |
| Unit account | 14,951,143.71 | 15,451,143.71 |
| Other | 35,200.01 | 35,200.01 |
| Total | 23,561,943.72 | 24,064,885.72 |
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 1,090,352.22 | 14,092,950.95 | 15,183,303.17 | |
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
Turn back in the currentperiod
| Turn back in the current period | 25,147.10 | 25,147.10 | ||
| Balance as at June 30 | 1,065,205.12 | 14,092,950.95 | 15,158,156.07 |
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 3,745,284.22 |
| Including：Subtotal within 1 year | 3,745,284.22 |
| 1-2 years | 4,454,759.77 |
| 2-3 years | 2,810,047.30 |
| Over 3 years | 12,551,852.43 |
| Over 5 years | 12,551,852.43 |
| Total | 23,561,943.72 |
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Accrual of bad debt provision by portfolio | 1,090,352.22 | 25,147.10 | 1,065,205.12 | |
| Accrual of bad debt provision by single item | 14,092,950.95 | 14,092,950.95 | ||
| Total | 15,183,303.17 | 25,147.10 | 15,158,156.07 | |
Aging
| Aging | Closing balance | ||
| Other account receivable | Provision for bad debts | Expected loss rate（%） | |
| Within 1 year | 3,745,284.22 | 187,264.21 | 5.00 |
| 1-2 years | 4,454,759.77 | 445,475.98 | 10.00 |
| 2-3 years | 1,010,047.30 | 303,014.19 | 30.00 |
| Over 3 years | 258,901.48 | 129,450.74 | 50.00 |
| Total | 9,468,992.77 | 1,065,205.12 | |
| 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 | 48.34% | 11,389,044.60 |
| Second | Internal current account | 8,575,600.00 | 1-3 years | 36.40% | 912,800.00 |
| Third | Unit account | 1,800,000.00 | 2-3 years | 7.64% | 1,800,000.00 |
| Fourth | Unit account | 783,579.12 | 1-2 years | 3.33% | 61,916.94 |
| Fifth | Unit account | 592,420.00 | Over 5 years | 2.51% | 592,420.00 |
| Total | -- | 23,140,643.72 | -- | 98.21% | 14,756,181.54 |
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for | Book value | Book balance | Provision for | Book value | |
impairment
| impairment | impairment | |||||
| Investments in subsidiaries | 1,968,806,395.91 | 16,582,629.30 | 1,952,223,766.61 | 1,980,806,395.91 | 16,582,629.30 | 1,964,223,766.61 |
| Investments in associates and joint ventures | 163,733,127.58 | 163,733,127.58 | 32,952,085.66 | 32,952,085.66 | ||
| Total | 2,132,539,523.49 | 16,582,629.30 | 2,115,956,894.19 | 2,013,758,481.57 | 16,582,629.30 | 1,997,175,852.27 |
| Name | Opening balance | Increase | Decrease | Closing balance | Withdrawn impairment provision in the reporting period | Closing balance of impairment provision |
| Shenzhen Shengbo Optoelectronic Technology Co., Ltd. | 1,910,247,781.94 | 1,910,247,781.94 | 14,415,288.09 | |||
| Shenzhen Lisi Industrial Development Co., Ltd. | 8,073,388.25 | 8,073,388.25 | ||||
| Shenzhen Beauty Century Garment Co., Ltd. | 28,700,058.79 | 12,000,000.00 | 16,700,058.79 | 2,167,341.21 | ||
| Shenzhen Huaqiang Hotel | 15,489,351.08 | 15,489,351.08 | ||||
| Shenfang Property Management Co., Ltd. | 1,713,186.55 | 1,713,186.55 | ||||
| Total | 1,964,223,766.61 | 12,000,000.00 | 1,952,223,766.61 | 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 | |||||||||||
ShenzhenHaohaoPropertyLeasingCo., Ltd.
| Shenzhen Haohao Property Leasing Co., Ltd. | 5,641,139.93 | 637,149.71 | 2,000,000.00 | 4,278,289.64 | |||||||
| Anhui Huapeng Textile Co.,Ltd. | 11,784,626.51 | -912,673.03 | 10,871,953.48 | ||||||||
| Shenzhen Guanhua Printing & Dyeing Co., Ltd. | 65,503,360.10 | -520,438.51 | 67,584,497.83 | 132,567,419.42 | |||||||
| Shenzhen Xieli Automobile Co., Ltd. | 0.00 | ||||||||||
| Subtotal | 17,425,766.44 | 65,503,360.10 | -795,961.83 | 2,000,000.00 | 67,584,497.83 | 147,717,662.54 | |||||
| II. Associated enterprises | |||||||||||
| Shenzhen Changlianfa Printing and dyeing Company | 2,234,057.19 | 82,115.91 | 2,316,173.10 | ||||||||
| Jordan Garnent Factory | 2,363,614.70 | -202,853.10 | 674,303.17 | 2,835,064.77 | |||||||
| Yehui International Co., Ltd. | 10,928,647.33 | -197,358.53 | 132,938.37 | 10,864,227.17 | |||||||
| Subtotal | 15,526,319.22 | -318,095.72 | 807,241.54 | 16,015,465.04 | |||||||
| Total | 32,952,085.66 | 65,503,360.10 | -1,114,057.55 | 807,241.54 | 2,000,000.00 | 67,584,497.83 | 163,733,127.58 | ||||
（3）Other notes
The other amount of Guanhua Printing & Dyeing Company is to convert Guanhua Printing & Dyeing Investmentfrom other equity instruments to long-term equity investment.
4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Business income | Business cost | Business income | Business cost | |
| Income from Main Business | 33,021,263.65 | 4,357,490.45 | 31,576,065.65 | 5,166,425.81 |
| Other Business income | 1,572,244.63 | 1,572,244.63 | 1,767,833.77 | 1,767,833.77 |
| Total | 34,593,508.28 | 5,929,735.08 | 33,343,899.42 | 6,934,259.58 |
| Items | Amount of current period | Amount of previous period |
| Income from long-term equity investment measured by adopting the Equity method | -1,114,057.55 | 616,945.67 |
| Dividend income from investments in other equity instruments during the holding period | 908,000.00 | |
| Investment income received from holding of available-for –sale financial assets | 574,774.15 | |
| Total | -206,057.55 | 1,191,719.82 |
| Items | Amount | Notes |
| Non-current asset disposal gain/loss | 12,236,686.25 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related | 11,035,139.06 |
to the Company’s business and grantedunder the state’s policies)
| to the Company’s business and granted under the state’s policies) | ||
| Other non-business income and expenditures other than the above | 4,241,169.03 | |
| Less :Influenced amount of income tax | 3,121,789.28 | |
| Influenced amount of minor shareholders’ equity (after tax) | 6,010,334.88 | |
| Total | 18,380,870.18 | -- |
| Profit of report period | Weighted average ROE (%) | EPS（Yuan/share） | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to the Common stock shareholders of Company. | 0.32% | 0.0153 | 0.0153 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | -0.43% | -0.0206 | -0.0206 |
XI．Documents Available for Inspection
1.Financial statements bearing the seal and signature of legal representative, General Manaager and financialcontroller;
2.The original of the auditor’s report bearing the seal of the certified public accountants and the signature ofC.P.A.
3.The originals of all the Company’s documents and the original manuscripts of announcements publiclydisclosed on the newspapers designated by China Securities Regulatory Commission in the report period.
4. 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 21, 2019