ShenzhenTextile(Holdings)Co.,Ltd.
2020AnnualReport
March2020
Chapter1:ImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors,SupervisoryCommittee,AllDirectors,SupervisorsandSeniorexecutivesoftheCompanyherebyguaranteesthattherearenomisstatement,misleadingrepresentationorimportantomissionsinthisreportandshallassumejointandseveralliabilityfortheauthenticity,accuracyandcompletenessofthecontentshereof.Ms.ZhangJian,TheCompanyleader,Mr.HeFei,Personinchargeofaccountingworks,Ms.ZhuJingjing,thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccountingherebyconfirmtheauthenticityandcompletenessofthefinancialreportenclosedinthisannualreport.
AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.Thecompany’sprofitdistributionplanapprovedbytheboardofdirectorsthistimeis:basedon507,772,279shares,acashdividendof0.3yuan(taxincluded)willbedistributedtoallshareholdersforevery10shares,and0shares(taxincluded)willbegivenasbonusshares.Thecapitalreservewillnotbeconvertedintosharecapital.
TableofContentsI.ImportantNotice,TableofcontentsandDefinitionsII.BasicInformationoftheCompanyandFinancialindexIII.OutlineofCompanyBusinessIV.Management’sDiscussionandAnalysisV.ImportantEventsVI.ChangeofsharecapitalandshareholdingofPrincipalShareholdersVII.SituationofthePreferredSharesVIII.InformationaboutconvertiblecorporatebondsIX.InformationaboutDirectors,SupervisorsandSeniorExecutivesX.AdministrativestructureXI.CorporateBondXII.FinancialReportXIII.Documentsavailableforinspection
Definition
| Termstobedefined | Definition |
| Company/TheCompany/ShenTextile | ShenzhenTextile(Holdings)Co.,Ltd |
| ArticlesofAssociation | ArticlesofAssociationofShenzhenTextile(Holdings)Co.,Ltd |
| Actualcontroller/NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | NationalAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment |
| TheControllingshareholder/ShenzhenInvestmentHoldingCo.,Ltd. | ShenzhenInvestmentHoldingCo.,Ltd. |
| ShenchaoTechnology | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. |
| SAPOPhotoelectric | ShenzhenSAPOPhotoelectricCo.,Ltd. |
| JinjiangGroup | HangzhouJinjiangGroupCo.,Ltd. |
| JinhangInvestment | HangzhouJinhangEquityInvestmentFundPartnership(LP) |
| NittoDenko | NittoDenkoCorporation |
| KunshanZhiqimei | KunshanZhiqimeiMaterialTechnologyCo.,Ltd. |
| GuanhuaCompany | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. |
| ShenzhenXieli | ShenzhenXieliAutomobileEnterpriseCo.,Ltd. |
| Covid-19 | NovelCoronavirusPneumoniaOutbreak |
| Line6 | TFT-LCDpolarizerIIphaseLine6project |
| Line7 | IndustrializationprojectofpolaroidforsuperlargesizeTV |
| CompanyLaw | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | SecuritiesLawofthePeople’sRepublicofChina |
| TheReport | 2020AnnualReport |
Chapter2:BasicInformationoftheCompanyandFinancialindexI.CompanyInformation
| Stockabbreviation | ShenTextileA,ShenTextileB | Stockcode | 000045,200045 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameinChinese | 深圳市纺织(集团)股份有限公司 | ||
| Chineseabbreviation(Ifany) | 深纺织 | ||
| Englishname(Ifany) | SHENZHENTEXTILE（HOLDINGS）CO.,LTD | ||
| Englishabbreviation(Ifany) | STHC | ||
| LegalRepresentative | ZhangJian | ||
| Registeredaddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | ||
| PostalcodeoftheRegisteredAddress | 518031 | ||
| OfficeAddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | ||
| Postalcodeoftheofficeaddress | 518031 | ||
| InternetWebSite | http://www.chinasthc.com | ||
| szfzjt@chinasthc.com | |||
Ⅱ.Contactpersonandcontactmanner
| Boardsecretary | SecuritiesaffairsRepresentative | |
| Name | JiangPeng | LiZhenyu |
| Contactaddress | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen | 6/F,ShenfangBuilding,No.3HuaqiangNorthRoad,FutianDistrict,Shenzhen |
| Tel | 0755-83776043 | 0755-83776043 |
| Fax | 0755-83776139 | 0755-83776139 |
| jiangp@chinasthc.com | lizy@chinasthc.com |
Ⅲ.Informationdisclosureandplaced
| NewspapersselectedbytheCompanyforinformationdisclosure | SecuritiesTimes,ChinaSecurities,ShanghaiSecuritiesDaily,SecuritiesDailyandHongkongCommercialDaily. |
| InternetwebsitedesignatedbyCSRCforpublishingtheAnnualreportoftheCompany | http://www.cninfo.com.cn |
| TheplacewheretheAnnualreportispreparedandplaced | SecretarialofficeoftheBoard |
Ⅳ.ChangesinRegistration
| OrganizationCode | 19217374-9 |
| Changesinprincipalbusinessactivitiessincelisting(ifany) | InJuly2012,Thebusinessscopeofthecompanyischangedto"production,textilesprocessing,knitwear,clothing,upholsteryfabrics,belts,trademarkbands,handicrafts(withoutrestrictions);generalmerchandise,thespecialequipmentofthetextileindustry,textileequipmentandaccessories,instruments,standardparts,rawtextilematerials,dyes,electronicproducts,chemicalproducts,mechanicalandelectricalequipment,lightindustrialproducts,officesuppliesanddomestictrade(excludingthefranchise,thecontrolandthemonopolyofgoods);operationofimportandexportbusiness."InDecember2018,approvedbyShenzhenMarketSupervisoryAuthority,thecompany'sbusinessscopewaschangedto:productionandoperationofpolarizersandotheropticalfilmproducts;hotelandpropertyleasingandmanagement;productionandprocessingoftextiles,knitwear,clothing,anddecorativefabrics,Belts,trademarkbelts,handicrafts(excludingrestricteditems);departmentstores,specialequipmentforthetextileindustry,textileequipmentandaccessories,meters,standardparts,textilerawmaterials,dyes,electronicproducts,chemicalproducts,electromechanicalequipment,textileproducts,officeSuppliesanddomestictrade(excludingfranchise,control,andmonopolycommodities);importandexportbusiness. |
| Changesisthecontrollingshareholderinthepast(isany) | InOctober2004,InaccordancewiththeDecisiononEstablishingShenzhenInvestmentHoldingsCo.,Ltd.issuedbyState-ownedAssetsAdministrationCommitteeofShenzhenMunicipalPeople'sGovernment(ShenGuoZiWei(2004)No.223Document),ShenzhenInvestmentManagementCo.,Ltd.,thecontrollingshareholderoftheCompany,andShenzhenConstructionHoldingCompanyandShenzhenCommerceandTradeHoldingCompanymergedintoShenzhenInvestmentHoldingsCo.,Ltd. |
Ⅴ.OtherRelevantInformationCPAsengaged
| NameoftheCPAs | GrantThorntonInternationalLtd（SpecialGeneaalPartnership） |
| Officeaddress： | 5/F,ScitechPlaza,22JianguomenwaiStreet,ChaoyangDistrict,Beijing |
| NamesoftheCertifiedPublicAccountantsasthesignatories | ChengZhiyao,LiYao |
ThesponsorperformingpersistantsupervisiondutiesengagedbytheCompanyinthereportingperiod.
□Applicable√Notapplicable
ThesponsorperformingpersistantsupervisiondutiesengagedbytheCompanyinthereportingperiod.
□Applicable√NotapplicableVI.SummaryofAccountingdataandFinancialindex
MaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyears
□Yes√No
| 2020 | 2019 | Changedoverlastyear（％） | 2018 | |
| Operatingincome（RMB） | 2,108,964,687.80 | 2,158,184,855.71 | -2.28% | 1,272,356,771.34 |
| Netprofitattributabletotheshareholdersofthelistedcompany（RMB） | 37,267,995.74 | 19,679,910.43 | 89.37% | -22,980,624.93 |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany(RMB) | 18,084,607.04 | -41,179,849.56 | 143.92% | -65,404,429.81 |
| Cashflowgeneratedbybusinessoperation,net（RMB） | 1,930,932.76 | 383,145,788.50 | -99.50% | -460,494,321.15 |
| Basicearningpershare(RMB/Share) | 0.07 | 0.04 | 75.00% | -0.04 |
| Dilutedgainspershare(RMB/Share)(RMB/Share) | 0.07 | 0.04 | 75.00% | -0.04 |
| WeightedaverageROE(%) | 1.36% | 0.75% | 0.61% | -0.96% |
| 2020 | 2019 | Changedoverlastyear（％） | 2018 | |
| Grossassets（RMB） | 4,969,547,552.23 | 4,531,399,885.99 | 9.67% | 4,619,203,416.79 |
| Netassetsattributabletoshareholdersofthelistedcompany（RMB） | 2,766,234,174.39 | 2,727,764,144.36 | 1.41% | 2,373,329,991.86 |
VII.Thedifferencesbetweendomesticandinternationalaccountingstandards
1．SimultaneouslypursuanttobothChineseaccountingstandardsandinternationalaccountingstandardsdisclosedinthefinancialreportsofdifferencesinnetincomeandnetassets.
□Applicable√Notapplicable
2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
□Applicable√NotapplicableNil
VIII.MainFinancialIndexbyQuartersInRMB
| Firstquarter | Secondquarter | Thirdquarter | Fourthquarter | |
| Operatingincome | 384,038,897.58 | 472,274,451.16 | 616,632,602.23 | 636,018,736.83 |
| Netprofitattributabletotheshareholdersofthelistedcompany | -5,827,092.54 | 6,546,827.28 | 24,726,413.83 | 11,821,847.17 |
| Netprofitafterdeductingofnon-recurringgain/lossattributabletotheshareholdersoflistedcompany | -9,495,160.00 | 2,377,214.57 | 20,780,909.95 | 4,421,642.52 |
| NetCashflowgeneratedbybusinessoperation | -84,585,231.55 | -51,034,243.68 | 85,768,341.55 | 51,782,066.44 |
Whethersignificantvariancesexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedbytheCompany.
□Yes√No
IX.Itemsandamountofnon-currentgainsandlosses
√Applicable□NotapplicableInRMB
| Items | Amount(2020) | Amount(2019) | Amount(2018) | Notes |
| Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassetsimpairmentprovisionismade) | 273,229.58 | 54,895,878.65 | -97,477.14 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 29,506,252.69 | 27,547,902.92 | 17,228,202.21 | Mainlyduetorecognizeotherincomefromgovernmentsubsidiesrelatedtothemainbusiness. |
| Gain/lossonentrustingotherswithinvestmentorassetmanagement | 1,037,735.85 | 52,271,862.25 | ||
| Switchbackofprovisionfordepreciationofaccountreceivablewhichwassinglytakendepreciationtest. | 469,470.61 | |||
| Othernon-recurringGains/lossitems | 1,310,556.26 | 4,582,973.27 | 1,143,552.02 | |
| Less:Influencedamountofincometax | 53,313.37 | 13,886,055.96 | 48,007.18 |
| Influencedamountofminorshareholders’equity(aftertax) | 11,853,336.46 | 12,750,409.50 | 28,074,327.28 | |
| Total | 19,183,388.70 | 60,859,759.99 | 42,423,804.88 | -- |
FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1oninformationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1oninformationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosseswhichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason.
□Applicable√NotapplicableNoneofNon-recurringgain/lossitemsrecorgnizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non–recurringgain/lossinthereportperiod.
Chapter3:BusinessProfileI.MainBusinesstheCompanyisEngagedinDuringtheReportPeriod
1.MainBusinesstheCompany
Thecompany'smainbusinesscoveredsuchthehighandnewtechnologyindustryasrepresentedbyLCDpolarizer,itsownpropertymanagementbusinessandtheretainedbusinessofhigh-endtextileandgarment.Duringthereportingperiod,thecompany'smainbusinessdidnothavebigchange.Firstly,Thecompanyadjusteditsmarketingstrategy,optimizeditscustomerandproductstructure,andsuccessfullycompletedtheintroductionandmassproductionofmultipleprojectsforpanelcustomerssuchasLGD,HuaxingOptoelectronics,Huike,andSharptofurtherenhanceitsanti-riskandprofitabilitycapabilities.Secondly,Activelypromotecostreductionandqualityimprovement,reducecoststhroughvariousmeasuressuchasincreasingmachinespeed,equipmentandtechnologicaltransformation,upgradingthelevelofautomationintheback-end,andbroadeningprocurementchannels,whiletakingintoaccounttheimprovementofproductquality.Thirdly,activelyrespondtotheCOVID-19,overcometheadverseeffects,andmakeeveryefforttopromotetheconstructionoftheultra-large-sizeTVpolarizerindustrializationproject(line7).Theline7projectwasaffectedbytheepidemicandresumedworkinmid-March2020.ThecompanyadoptedstrictcontroloftheepidemicMeasuressuchaspreventionandcontrol,activelycoordinatingtheentryofJapanesetechnicalpersonnelintothefactory,andformulatingaspecialassessmentplanfortheconstructionofLine7projectstoacceleratetheprogressoftheprojecttothegreatestextent..Fourthly,inordertojointlyrespondtothenovelcoronaviruspneumoniaepidemicandactivelyfulfillsocialresponsibilities,thecompanyanditswholly-ownedenterprisesrespondedtothecalloftheShenzhenMunicipalPartyCommitteeandtheState-ownedAssetsSupervisionandAdministrationCommissiontoreduceorexemptsometenantsofself-ownedproperties(exceptresidentialproperties)for3months.Fifthly,thetextileindustrymakesfulluseofmycountry'sadvantagesofeffectiveepidemicpreventionandcontrolandearlyresumptionofworkandproduction,activelyseizingmarketshare,andachievingbothgrowthinoperatingincomeandnetprofit.Sixthly,inordertoimprovethecompany'soverallassetoperationcapabilityandrevitalizethestockassets,thecompanyimplementstransferandliquidationworkforthepoorlymanagedshareholdingcompanies,andconcentratesonthedevelopmentofthepolarizerbusiness.Seventhly,implementtheepidemicpreventionandcontrolwork,payattentiontosafeandgreenproduction,thecompanyhassetupaspecialclassforepidemicpreventionandcontrol,andformedanefficientepidemicpreventionworkmechanismwithdivisionofresponsibility,layer-by-layertransmission,andcoordinationtoensuretheimplementationofvariousdeploymentmeasures,centralizedrectification,andfocusInvestigatesafetyandenvironmentalissues,promotethesafeandstabledevelopmentofenterprises,andactivelyfulfillsocialresponsibilities.
2.Thecompany'smainproductsanduses
PolarizersaretheupstreamrawmaterialofLCDpanelsandoneofthekeybasicmaterialsintheflatpaneldisplayindustry.Theyarewidelyusedinsmartphones,tabletcomputers,TVsandotherLCDpanels,OLEDdisplaypanels,aswellasfiltersforinstruments,sunglasses,andphotographicequipment.Manyfieldssuchaslightmicroscopy.Thecompanycurrentlyhas6mass-producedpolarizerproductionlines.TheproductscoverTN,STN,TFT,OLED,3D,dyefilms,opticalfilmsfortouchscreensandotherfields.TheyaremainlyusedinTV,NB,navigator,Monitor,automotive,industrialcontrol,Instruments,smartphones,wearabledevices,3Dglasses,
sunglassesandotherproducts,thecompanyhasbecomeamainstreampanelcompanysuchasHuaxingOptoelectronics,BOE,Sharp,LGD,ShenzhenTianma,Huike,etc.bycontinuouslystrengtheningsaleschannelexpansionandbuildingitsownbrand.Qualifiedsuppliers.TheCompany'smainproductsmadeineachpolarizerproductionlineandtheirapplicationareasfollows:
| Line | Place | Productbreadth | Plannedcapacity | Mainproducts |
| Line1 | Pingshan | 500mm | 600,000m2 | TN/STN/dyefilm |
| Line2 | Pingshan | 500mm | 1.2millionm2 | TN/STN/CSTN |
| Line3 | Pingshan | 650mm | 1millionm2 | TFT |
| Line4 | Pingshan | 1490mm | 6millionm2 | TFT |
| Line5 | Pingshan | 650mm | 2millionm2 | TFT |
| Line6 | Pingshan | 1490mm | 10millionm2 | TFT/OLED |
| Line7 | Pingshan | 2500mm | 32millionm2 | TFT/OLED |
3.Company'sbusinessmodel
ThepolarizerindustryhasgraduallyshiftedfromatraditionalbusinessmodelofR&D,production,andsalestoacustomer-centric,jointresearchanddevelopment,andcomprehensiveservicebusinessmodel.Byunderstandingcustomerneeds,jointresearchanddevelop,managehigh-standardproduction,manufacturehigh-qualityproducts,useadvancedpolarizerrollandattachingequipmenttocooperatewithdownstreampanelmanufacturers'productionlines,reduceproductionlinks,reduceproductionandtransportationcosts,andcreatevalueforcustomers,win-win.
4.MajorfactorsfordrivingtheCompany'sperformance
Referto"III.Analysisoncorecompetitiveness"inthissectionfordetails.
5.DevelopmentstageandperiodiccharacteristicsoftheindustrywheretheCompanyisinvolvedandtheCompany'spositionintheindustry
Referto"IX.Company'soutlookforfuturedevelopment"inSectionIVfordetails.
Inthefuture,thecompanywillrelyonmorethan20yearsofindustrialoperationexperienceandlocationadvantagestocontinuetodeepenthereformofmixedownershipandstrengthenstrategiccooperation.Throughtheintegrationofindustrialresources,improveproductiontechnologyandmanagementlevel;atthesametime,seizemarketopportunities,makeeveryefforttopromotetheconstructionofultra-widepolarizerproductionline,andseizethehigh-marginultra-large-sizeLCDTVpolarizerproductmarket;makepolarizerswellTheindustryalsoextendstootherflat-paneldisplay-relatedopticalfilmindustries,andthenbecomesstronger,biggerandbetter.
II.MajorChangesinMainAssets
1.MajorChangesinMainAssets
| Mainassets | Majorchanges |
| Equityassets | Nomajorchanges |
| Fixedassets | Nomajorchanges |
| Intangibleassets | Nomajorchanges |
| Constructioninprocess | Constructioninprogressincreasedby46,188.39millionyuanyearonyear,withanincreaseof54.99%,mainlyduetotheincreaseinconstructioninvestmentinprogressofthepolarizerindustrializationprojectforultra-largetelevision(Line7). |
| Monetaryfunds | Monetaryfundsdecreasedby6,041.32millionyuanyearonyear,withadecreaseof14.75%,mainlydueto:firstly,theinvestmentintheconstructionofLine7ofthepolarizerindustrializationprojectforultra-largeTV;Secondly,thepurchaseoffinancialproducts. |
| Tradingfinancialassetsdecreasedby14,538.27millionyuanyearonyear,withandecreaseof17.52%,mainlyduetothedecreaseininvestingthepurchaseoffinancialproducts.Tradingfinancialassets | |
| Notesreceivable | Notesreceivabledecreasedby2,361.09millionyuanyearonyear,withandecreaseof58.41%,mainlyduetotheBanker'sacceptanceaccordingtothemanagementneedsofreclassificationadjustmentforreceivablesfinancing. |
| Accountreceivable | repaymentsIncreasedby18,198.52millionyuanyearonyear,withaIncreaseof49.81%,mainlyduetotheIncreaseinsalesofpolarizer. |
| Receivablesfinancing | Receivablesfinancingincreasedby8,411.77millionyuanyearonyear,withanincreaseof460.05%,mainlyduetothesignificantlyincreaseincustomerofacceptanceandsettlementthisyear. |
| Interestreceivable | Interestreceivabledecreasedby761millionyuanyearonyear,withandecreaseof100%,mainlyduetothereclassificationofInterestreceivabletoTradingfinancialassetsunderthenewfinancialinstrumentstandardsforthefirsttime. |
| Othercurrentassets | Othercurrentassetsdecreasedby6,338.29millionyuanyearonyear,withadecreaseof45.01%,mainlyduetothereductionofuncertifiedVATtobededucted. |
| Inventory | Inventoryincreasedby8,912.9millionyuan,withaIncreaseof22.75%,mainlyduetotheneedforthepreparationofpolarizer. |
2.MainConditionsofOverseasAssets
□Applicable√Notapplicable
III.AnalysisOncoreCompetitiveness
(1)Technologyadvantages.SAPOPhotoelectricisthefirstdomesticnationalhigh-techcompanywhichenteredintotheR&Dandproductionofthepolarizer，Weareoneofthelargest,mosttechnicalandprofessionalpolarizerR&Dteamsinthecountryandhasmorethan20yearsofoperatingexperienceinthepolarizerindustry.ProductsincludeTN-type,STN-type,IPS-TFT-type,VA-TFT-type,OLED,vehicle-mountedindustrialdisplay,flexibledisplay,3Dstereoandpolarizerforsunglasses,andopticalfilmfortouchscreens,etc.,Wehaveproprietarytechnologyforpolarizersandnewintellectualpropertyrightsforvariousnewproducts.Bytheendof
thereportingperiod,thecompanyappliedfor107inventionpatentsandwasauthorizedwith79items,amongwhich:32domesticinventionpatents(14patentsgotauthorized);68domesticutilitymodelpatents(61patentsgotauthorized);1overseasinventionpatent(0patentsgotauthorized);6overseasutilitymodelpatents(4patentsgotauthorized).Therewere4nationalstandardsand2industrialstandardsthatweredevelopedbythecompanyareapprovedandthenwillbeimplemented.Thecompany,possessingthetwotechnologyplatforms“Shenzhenpolarizingmaterialsandengineeringlaboratory"and"Municipalresearchanddevelopmentcenter",focusedontheR&DandtheindustrializationofthecoreproductiontechnologyofLCDpolarizer,thedevelopingandindustrializationofthenewproductsofOLEDpolarizerandthe“domestication”researchontheproductionmaterialsofpolarizer.Throughtheintroductionofvarioustypesofsophisticatedtestingequipmentstoperfectthetestmeansofsmall-scaletestandmedium-scaletest,furtherbyimprovingtheincentivesystemofresearchanddevelopmentandbuildingthecollaborativeinnovationplatformof“Industry-Study-Research-Utilization”andsoforthmeans,thecompanycomprehensivelyenhancedthelevelofresearchanddevelopment.
(2)Talentsadvantages.TheCompanyhasapolarizermanagementteamandateamofseniortechnicianswithstrongtechnicalability,long-termcooperation,richexperienceandinternationalvision.Throughopenmarketselection,theCompanyhashiredprofessionalseniormanagementpersonnel,builtateamofprofessionalmanagers,cultivatedaprofessionalmanagercultureandenhancedthecorecompetitivenessoftheenterprise.TheCompanyhasestablishedatechnicalcooperationrelationshipwithNittoDenkoCorporation,aworld-classpolarizermanufacturer,tolearnadvancedpolarizerproductionmanagementconcepts.Meanwhile,theCompanyhasaccumulatedtechnicalexperiencethroughindependentinnovation,improveditscorecompetitiveness,andgraduallyaccumulateditsownadvantagesinbrand,technology,operationandmanagement.Throughimprovingthesalaryassessmentmanagementsystem,enrichingtheconnotationoflearning-basedorganizations,andimplementinginstitutionalandculturalconstructionsuchasmedium-termandlong-termincentiveandrestraintmechanisms,theCompanyhasdeeplyboundtheinterestsofemployeeswiththeCompany,andfullystimulatedthesubjectiveinitiativeoftalents.
In2019,inordertoimprovetheoperatingconditionsofSSAPOPhotoelectric,asubsidiaryoftheCompany,furtherpromotetheimplementationofspecialization,professionalizationandmarketizationofmanagementpersonnelandoptimizethemanagementteam,SAPOPhotoelectricopenlyorganizedmarket-orientedselectionofmanagementteamsfortalentsofthewholesocietyinaccordancewiththerelevantspiritofShenzhenMunicipalState-ownedAssetsSupervisionandAdministrationCommissionregardingthepromotionofprofessionalmanagerteamconstructionandincombinationwiththemanagementsituationofSAPOPhotoelectric.Asoftheendofthisreportingperiod,SAPOPhotoelectrichascompletedtheorganizationregistration,qualificationexaminationandinterviewselectionofthemarketingselectionmanagementteam.The3professionalmanagersselectedinthemarkethavebeendeployedforpostinJanuary2020.
(3)Marketadvantages.Thecompanyhasgoodcustomergroupsnotonlyindomesticmarketbutinforeignmarket,comparedwithforeignadvancedcounterparts,thebiggestadvantageliesinthelocalizationforsupporting,closetothepanelmarket,aswellasthestrongsupportofthenationalpolicy.Intermsofmarketdemand,withthemassproductionofthe10.5/11-generationTFT-LCDpanelproductionlinesunderconstructionandplannedforthenextfewyears,theproductioncapacityofhigh-generationTFT-LCDpanelsinmainlandChinawillincreasesignificantlyinthenextfewyears,thecorrespondingdomesticpolaroidfilmmarketdemandhasalsoincreased,andthedomesticmarketisthemostimportantmarketforpolaroidmanufacturers,especiallyinthelarge-sizepolarizermarket.Mainlandpolarizermanufacturerswillusherinimportantindustryopportunities;intermsofmarketdevelopment,thecompanytakesproductionmaterialcontrolasthecore,technologyservicesastheguide,customerneedsasthefocus,organicallycombinesproductionandsales,establishesarapidresponsemechanism,
fullyexploitslocalizationadvantages,andusesitsownaccumulatedtechnologyandtalents,doesagoodjobofpeer-to-peerprofessionalservices,formsastablesupplychainandincreasesmarketshare.
(4)Qualityadvantages.Thecompanyalwaysadheredtothequalitypolicyof"Satisfyingcustomerdemandsandpursuingexcellentquality"andfocusedonproductqualitycontrol.Thecompanystrictlycontrolsproductperformanceindicators,standardizesinspectionstandardsforincomingmaterials,startswithqualityimprovementandconsumptionreduction,andachievessimultaneousincreaseinoutputandquality;throughtheintroductionofamodernqualitymanagementsystem,theproductshavepassedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem,OHSAS18000OccupationalHealthandSafetyManagementSystem,QCO80000SystemCertification;theproductistestedbySGSandmeetstheenvironmentalprotection,Thecompanyhadincreasedtheautomaticdetectingandmarkingequipmentsinthebeginningsectionandtheendingsection,strictlycontrolledtheproductqualityandimprovedtheproductutilizationrateandproductmanagementefficiency.
(5)Managementadvantages.SAPOPhotoelectrichasaccumulatedrichmanagementexperiencesinmorethan20yearsinthemanufacturingofpolarizer,possessingthehomemostadvancedcontroltechnologyoftheproductionmanagementprocessofthepolarizerandqualitymanagementtechnologyandthestablerawmaterialprocurementchannelsoforthmanagementsystems.Thecompanyhadcarriedoutcomprehensivebenchmarkingwork,organizedthemanagementpersonneltolearnadvancedexperiencesfromcustomersandpeerstoforcetheelevationofmanagementability,anddrewontheforeigncompany’smanagementexperiencesofpolarizer,optimizedthecompany'sorganizationalstructure,reducedthemanagerialhierarchyandfurtherenhancedthecompany'smanagementefficiency.Aftertheintroductionofthestrategicinvestor,ThroughclosecooperationwithJinjiangGroup,wecomplementeachother'sstrengths,absorbthevitalityofprivateenterprises,continuetoimplementadvancedmanagementsystems,reasonableincentivemechanisms,etc.,improvetheefficiencyofdecision-making,enhancethespeedofmarketresponse,improvetheresearchanddevelopmentincentivesystem,andalsorealizethedeepintegrationofthevalueofthecompanyanditsemployeesandstimulatesthenewvitalityofthebusiness.
(6)Policyadvantages.PolarizerisseenasanessentialpartofthepaneldisplayindustryandSAPOPhotoelectricinitsdevelopmenthaspromotedthesupplycapacityofnationalpolarizers,greatlyloweredthedependenceofnationalpanelenterprisesonimportedpolarizers,andsafeguardedthenationalpanelindustry,whichservesasagoodfacilitatortoenhancingtheoverallcompetitivenessofChina'spanelindustrychainandcoordinateddevelopmentofthewholeindustrychainofthepaneldisplayindustryclusterinShenzhen.Recognizedasanationalhigh-techenterprise,theCompanyisentitledtothepreferentialpolicyforduty-freeimportofownproductiverawmaterialsthatcannotbeproducedathomeandfrequentlygainednational,provincialandmunicipalpolicyandfinancialsupportinitspolarizerprojects.Meanwhile,theCompanytightenedsuppliermanagement,improveditsoverallpurchasingstrategy,anddownsizedsupplierswhileintroducingacompetitivemechanism,whereinfocuswasgiventointroductionofnewmaterialsatacompetitiveprice,tofurtherloweritsproductioncostandimproveitsproductcompetitiveness.
Chapter4:Management’sDiscussionandAnalysisI.GeneralIn2020,inthefaceoftheadverseimpactoftheCOVID-19epidemic,thecompanydiditsbesttopreventandcontroltheepidemicandresumeworkandproduction,strivetoreducelossesandincreaseprofitsinthemainworkofpolarizer,speeduptheconstructionofLine7project,respondtothecallofthemunicipalpartycommitteeandgovernment,themunicipalState-ownedAssetsSupervisionandAdministrationCommissionandShenzhenInvestmentControl,andreducerentandfeestosupporttherealeconomytoovercomedifficulties.In2020,thecompanyachievedoperatingincomeof2.109billionyuan,2.28%lessthanthesameperiodlastyear;Thetotalprofitwas51,218,900yuan,anincreaseof437.31%overthesameperiodlastyear;Netprofitattributabletoshareholdersofthelistedcompanywas36.93338millionyuan,anincreaseof87.67%overthesameperiodlastyear.Revenuesfallmodestlyfromlastyear,themainreasonistojointlycopewithCOVID-19outbreak,activelyfulfillthesocialresponsibility,thecompanyanditswhollyownedenterprisesresponsetothecallofshenzhenmunicipalpartycommitteemunicipalgovernmentandthestate-ownedassetssupervisionandadministration,breaksitsownproperty(inadditiontoresidentialproperty)ofapartofthetenant:3monthsthisyear,therentalincomefellduringthereportingperiod;Second,duringthisreportingperiod,thesubsidiarySAPOPhotoelectrididnotcarryouttradebusiness,andtheincomefromtradebusinessdecreasedcomparedwiththesameperiodlastyear.themainreasonofthenetprofityear-on-yeargrowthofAttributabletoshareholdersoflistedcompaniesisbenefitfromimprovingoftwotofourquarterpolaroid2020marketconditions,adjustmenteffectofSAPOPhotoelectriordersforproductsstructureisremarkable,capacityhasimproved,theaveragegrossmarginlevelhasimproved,mainbusinessofpolarizerturnedalossintoaprofitthisyear.Reviewofthecompany'skeyworkscarriedoutin2020asfollows:
1.mainbusinessofpolarizerturnedalossintoaprofit
In2020,first,thecompanywilladjustitsmarketingstrategy,optimizeitscustomerandproductstructure,andsuccessfullycompletetheintroductionandmassproductionofmultipleprojectsforpanelcustomerssuchasLGD,HuaxingOptoelectronics,Huike,andSharp,tofurtherimproveanti-riskandprofitability;Second,thecompanyactivelypromotescostreductionandqualityimprovement,reducingcostsandimprovingproductqualitythroughanumberofmeasuressuchasincreasingmachinespeed,equipmentandtechnologicaltransformation,upgradingthelevelofautomationintheback-end,andbroadeningprocurementchannels,whilealsoimprovingproductquality;third,increasingtalentRecruitmentefforts,reformingthesalarystructure,andstimulatingthevitalityofemployees..
Meanwhile,theCompanycontinuedtoexploreR&Dinnovationandintensifythedevelopmentofindependentintellectualpropertyrights.Itsresearchanddevelopmentwerecombinedwiththeactualmarketconditionstocarryoutproductdevelopmentandmarketpromotionandimport,soastoimproveproductperformance.In2020,,wecarriedoutR&Dandimportofavarietyofcoatingadhesivematerials,keytechnologyprocesses,andnewproducts,totaling13items.weappliedfor8patents,including2inventionpatentsand6utilitymodelpatents,obtained4authorizedpatents,including3inventionpatentsand1utilitymodelpatent.
2.Theprofitabilityofthetextilebusinessrosesteadily,propertycompaniesrespondedtothecallforrentreductionandexemption.Atthebeginningof2020,duetotheimpactofthenovelcoronaviruspneumoniaepidemic,mycountry'stextileandgarmentindustryexportswereblocked.Thecompanytooktheinitiativetoovercomelaborshortagesandotherdifficulties,andtookfulladvantageofmycountry'seffectiveepidemicpreventionandcontrolandearlyresumptionofproductiontoactivelyseizemarketshareandachievebothgrowthinoperatingincomeandnetprofit.In2020,thecompanyactivelyrespondedtothecalloftheMunicipalPartyCommitteeandtheMunicipalGovernment,fulfilleditssocialresponsibilities,implementedpropertyrentreductionmeasures,andreducedorexemptedeligibletenantsfromrentforthreemonths.
3.Activelypromotetheconstructionoftheindustrializationprojectofultra-large-sizeTVpolarizerAtthebeginningof2020,thenovelcoronaviruspneumoniaepidemichadacertainimpactonthecompany’sconstructionofthecompany’sultra-large-sizeTVpolarizerindustrializationproject(hereinafterreferredtoas"Line7").Thecompanyactivelyrespondedtoit.Whiledoingagoodjobinepidemicprevention,thecompanyactivelycooperatedwiththegovernment.Departmentalcommunication,oneistopromotethefullresumptionofworkoftheLine7projectonMarch12,2020,theotheristoovercomedifficultiesandtopromotetwogroupsofJapanesetechnicianstoarriveatthefactory,andthethirdisthatthecompanyhasformulatedaspecialassessmentplanfortheline7projecttofullymobilizetheenthusiasmofprojectpersonnelAndinitiative.Throughtheimplementationofvariousmeasures,theprojectconstructionprogresswillbeacceleratedtothegreatestextent.
AsofDecember31,2020,thecivilengineeringoftheLine7projecthasbasicallybeencompleted,andthepreliminaryacceptanceofthecleanareaofthemainproductionworkshophasbeencompleted;intermsofprocessequipment,themainequipmentsuchastheextensionmachine,thecoatingmachine,andtheanti-checkingmachinehasbeeninstalledandcommissionedInthestage,theoverallcommissioningwillbecompletedinlateMarch2021andentertrialproduction.
4.Effectivelyorganizeepidemicpreventionandcontrol,productionsafety,stableandorderly
Duringthereportingperiod,thecompanyfirststrengthenedorganizationandleadershiptoeffectivelypreventandcontroltheepidemic.Aspecialclassforepidemicpreventionandcontrolhasbeensetuptorefinethedivisionofresponsibilities,formanefficientepidemicpreventionworkmechanismwithdivisionofresponsibility,layer-by-layertransmission,andcoordination,andweaveanetworkofepidemicpreventionresponsibilitytoensurethatvariousdeploymentmeasuresareimplementedtoeffectivelyprotectthelivesofemployees.Thesecondistoincreaseinvestmentinenvironmentalprotection,andproductionissafety,stableandorderly.Thecompanypaysattentiontoenvironmentalprotectionandsafety,continuouslyincreasessafetyinvestment,andatthesametimefullyimplementstheregulationsonthemainresponsibilityofproductionsafetyforproductionandbusinessunits.
5.Strengthenedsafetyawarenessandearnestlywellensuredsafetyandenvironmentalprotection
In2020,thecompany’spartycommittee,underthecorrectleadershipofthemunicipalSASACpartycommitteeandtheinvestmentcontrolcompany’spartycommittee,willthoroughlystudyandimplementXiJinping’sthoughtsonsocialismwithChinesecharacteristicsinthenewera.GeneralSecretaryXiJinpingwillattendthe40thanniversarycelebrationoftheestablishmentoftheShenzhenSpecialEconomicZoneandinspect
GuangdongandShenzhen.ThespiritofthespeechandimportantinstructionsandthespiritoftheFifthPlenarySessionofthe19thCentralCommitteeoftheCommunistPartyofChina,resolutelyimplementthefeedbackfromtheinspectionsofthesuperiorpartycommittee,andcarryoutthepartymembereducation"fiveone"projectactivitiesandthe"oneenterprise,onebrand"partybuildinginnovationactivities,andactivelygivefullplaytoalllevelsTheroleofpartyorganizationsandpartymembersinepidemicpreventionandcontrolandresumptionofworkandproductionprovidesastrongguaranteeforthereform,developmentandstabilityofenterprises..II.Mainbusinessanalysis
1.GeneralRefertorelevantcontentsof“1.Summarization”in“DiscussionandAnalysisofManagement”.
2.Revenueandcost
(1)ComponentofBusinessIncomeInRMB
| 2020 | 2019 | Increase/decrease | |||
| Amount | Proportion | Amount | Proportion | ||
| Totaloperatingrevenue | 2,108,964,687.80 | 100% | 2,158,184,855.71 | 100% | -2.28% |
| OnIndustry | |||||
| Manufacturing | 2,012,255,019.03 | 95.41% | 1,475,804,647.66 | 68.38% | 36.35% |
| LeaseandManagementofProperty | 85,177,866.03 | 4.04% | 106,372,055.25 | 4.93% | -19.92% |
| Domesticandforeigntrade | 0.00 | 0.00% | 517,020,991.54 | 23.96% | -100.00% |
| Other | 11,531,802.74 | 0.55% | 58,987,161.26 | 2.73% | -80.45% |
| OnProducts | |||||
| LeaseandManagementofProperty | 85,177,866.03 | 4.04% | 106,372,055.25 | 4.93% | -19.92% |
| Textile | 60,503,325.78 | 2.87% | 46,047,351.10 | 2.13% | 31.39% |
| Polarizersheet | 1,951,751,693.25 | 92.55% | 1,429,757,296.56 | 66.25% | 36.51% |
| Trade | 0.00 | 0.00% | 517,020,991.54 | 23.96% | -100.00% |
| Other | 11,531,802.74 | 0.55% | 58,987,161.26 | 2.73% | -80.45% |
| Area | |||||
| Domestic | 1,768,190,864.75 | 83.84% | 1,981,314,469.39 | 91.80% | -10.76% |
| Overseas | 340,773,823.05 | 16.16% | 176,870,386.32 | 8.20% | 92.67% |
(2)SituationofIndustry,ProductandDistrictOccupyingtheCompany’sBusinessIncomeandOperatingProfitwithProfitover10%
√Applicable□NotapplicableInRMB
| Turnover | Operationcost | Grossprofitrate(%) | Increase/decreaseofrevenueinthesameperiodofthepreviousyear(%) | Increase/decreaseofbusinesscostoverthesameperiodofpreviousyear(%) | Increase/decreaseofgrossprofitrateoverthesameperiodofthepreviousyear(%) | |
| OnIndustry | ||||||
| Manufacturing | 2,012,255,019.03 | 1,786,199,780.24 | 11.23% | 36.35% | 26.85% | 6.65% |
| LeaseandManagementofProperty | 85,177,866.03 | 21,892,925.24 | 74.30% | -19.92% | -9.26% | -3.02% |
| OnProducts | ||||||
| Polarizersheet | 1,951,751,693.25 | 1,737,733,572.46 | 10.97% | 36.51% | 26.94% | 6.72% |
| LeaseandManagementofProperty | 85,177,866.03 | 21,892,925.24 | 74.30% | -19.92% | -9.26% | -3.02% |
| Textile | 60,503,325.78 | 48,466,207.78 | 19.89% | 31.39% | 23.74% | 4.95% |
| Area | ||||||
| Domestic | 1,768,190,864.75 | 1,532,415,314.75 | 13.33% | -10.76% | -12.53% | 1.75% |
| Overseas | 340,773,823.05 | 281,883,080.27 | 17.28% | 92.67% | 71.83% | 10.03% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestonyear’sscopeofperiod-end.
□Applicable√Notapplicable
(3)WhethertheCompany’sPhysicalSalesIncomeExceededServiceIncome
√Yes□No
| Classification | Items | Unit | 2020 | 2019 | Changes |
| Polarizersheet | Sales | (0000’squaremeters) | 2,131.28 | 1,797.1 | 18.60% |
| Production | (0000’squaremeters) | 2,124.96 | 1,806.66 | 17.62% | |
| Stock | (0000’squaremeters) | 121.69 | 128.01 | -4.94% | |
| Knittedclothing | Sales | 0000’pieces | 358 | 257 | 39.30% |
| Production | 0000’pieces | 385 | 261 | 47.51% | |
| Stock | 0000’pieces | 80 | 53 | 50.94% |
Explanationforayear-on–yearchangeofover30%
√Applicable□NotapplicableTheproductionvolumeofpolarizerswas62.73%andtheSalesvolumeincreasedby62.73%,TFT-LCDPhaseIILine6wasputintoproductioninthesecondhalfof2018.Theproductioncapacitywasreleasedinthesameyear,withayear-on-yearincreaseonsalesvolume.
(4)DegreeofPerformanceoftheSignificantSalesContractSigneduptothisReportPeriod
□Applicable√Notapplicable
(5)Componentofbusinesscost
Industryandproductclassification
InRMB
| Industry | Items | 2020 | 2019 | Increase/Decrease(%) | ||
| Amount | Proportionintheoperatingcosts(%) | Amount | Proportionintheoperatingcosts(%) | |||
| Manufacturing | Polarizersheet,Knittedclothing | 1,786,199,780.24 | 98.45% | 1,408,148,827.10 | 71.35% | 26.85% |
| LeaseandManagementofProperty | Rental，Accommodation | 21,892,925.24 | 1.21% | 24,128,173.53 | 1.22% | -9.26% |
| Domesticandforeigntrade | Polarizersheet,Textile | 0.00 | 0.00% | 483,603,729.67 | 24.50% | -100.00% |
| Other | Other | 6,205,689.54 | 0.34% | 57,614,878.05 | 2.92% | -89.23% |
InRMB
| Classificationofproducts | Items | 2020 | 2019 | Increase/Decrease(%) | ||
| Amount | Proportioninoperationcosts(%) | Amount | Proportioninoperationcosts(%) | |||
| Polarizersheet | Directmaterials | 1,469,077,219.74 | 80.97% | 1,094,486,243.59 | 55.46% | 34.23% |
| Polarizersheet | Directlabor | 50,884,076.28 | 2.80% | 46,306,446.19 | 2.35% | 9.89% |
| Polarizersheet | Powercosts | 44,834,128.46 | 2.47% | 46,800,313.93 | 2.37% | -4.20% |
| Polarizersheet | Manufacturingcosts | 172,598,639.68 | 9.51% | 181,388,859.24 | 9.19% | -4.85% |
| Knittedclothing | Directmaterials | 30,107,965.70 | 1.66% | 20,014,843.33 | 1.01% | 50.43% |
| Knittedclothing | Directlabor | 10,388,237.67 | 0.57% | 9,480,251.60 | 0.48% | 9.58% |
| Knittedclothing | Powercosts | 1,256,258.98 | 0.07% | 1,370,323.40 | 0.07% | -8.32% |
| Knittedclothing | Manufacturingcosts | 7,251,535.16 | 0.40% | 8,301,545.82 | 0.42% | -12.65% |
(6)WhetherChangesOccurredinConsolidationScopeintheReportPeriod
√Yes□NoAsofDecember31,2020,thecompanyhasincluded8subsidiariesinthescopeofconsolidation.Fordetails,pleaserefertoSection12-9,1"EquityinSubsidiaries"ofthisreport.Thescopeofthecompany'sconsolidationthisyearincreasedbyonehouseholdcomparedtothepreviousyear.Fordetails,pleaserefertoSection12-8,5"ChangesinConsolidationScopeforOtherReasons"ofthisreport.
(7)RelevantSituationofSignificantChangesorAdjustmentoftheBusiness,ProductorServiceintheCompany’sReportPeriod
□Applicable√Notapplicable
(8)SituationofMainCustomersandMainSupplierInformationofMainCustomers
| Totalsalesamounttotop5customers(RMB) | 1,347,057,923.29 |
| Proportionofsalestotop5customersintheannualsales(%) | 63.86% |
| Proportionofthesalesvolumetothetopfivecustomersinthetotalsalestotherelatedpartiesintheyear | 5.24% |
InformationoftheCompany’stop5customers
| No | Name | Amount(RMB) | Proportion(%) |
| 1 | Customer1 | 760,941,270.04 | 36.08% |
| 2 | Customer2 | 173,448,174.15 | 8.22% |
| 3 | Customer3 | 172,152,298.18 | 8.16% |
| 4 | Customer4 | 129,970,966.64 | 6.16% |
| 5 | Customer5 | 110,545,214.28 | 5.24% |
| Total | -- | 1,347,057,923.29 | 63.86% |
OtherNote:
√Applicable□Notapplicable
Inthereportperiod,theCompanyborearelationwiththeThirdbiggestclientofthetopfiveclientsbuttheCompany'sdirectors,supervisors,seniorexecutives,keymanagementandtechnicalpersonnel,shareholderswithmorethan5%ofshares,actualcontrollersandotherrelatedpartieshadnodirectorindirectrightsorinterestsin
anykeyclient.Principalsuppliers
| Totalpurchaseoftop5Suppliers（RMB） | 725,936,071.57 |
| Percentageoftotalpurchaseoftop5suppliersIntotalannualpurchase(%) | 43.16% |
| Proportionofpurchaseamountfromthetop5suppliersinthetotalpurchaseamountfromtherelatedpartiesintheyear | 12.14% |
Informationaboutthetop5suppliers
| No | Name | Amount（RMB） | Proportion |
| 1 | Supplier1 | 204,282,036.36 | 12.14% |
| 2 | Supplier2 | 153,042,316.73 | 9.10% |
| 3 | Supplier3 | 147,346,299.63 | 8.76% |
| 4 | Supplier4 | 112,838,305.95 | 6.71% |
| 5 | Supplier5 | 108,427,112.90 | 6.45% |
| Total | -- | 725,936,071.57 | 43.16% |
OtherNotes:
√Applicable□Notapplicable
Inthereportperiod,theCompanyborearelationwiththefirstsuppliersofthetopfivesuppliersbuttheCompany'sdirectors,andthedirectors,supervisorsandseniormanagement,coretechnicalstaff,shareholderswithholdingofmorethan5%stocks,actualcontrollersandotheraffiliatedpartiesdonothavedirectorindirectequityofthemajorsuppliers.
3.Expenses
InRMB
| 2020 | 2019 | Increase/Decrease(%) | Notes | |
| Saleexpenses | 28,644,230.87 | 20,785,078.66 | 37.81% | Mainreasonisthattheincreaseintheproportionofsalesofchannelvendorshasledtoanincreaseinservicecommissionsyear-on-year,andtheincreaseinlong-distancesalesandimprovedtransportationconditionshaveledtoanincreaseintransportationcosts. |
| Administrationexpenses | 105,094,934.36 | 96,870,842.37 | 8.49% |
| Financialexpenses | 8,287,888.28 | 15,862,799.64 | -47.75% | Mainlyduetotheexchangelossincreasedyear-on-year. |
| R&Dcost | 67,160,964.22 | 53,178,714.33 | 26.29% |
4.R&DExpenses
√Applicable□NotapplicableIn2020,theR&DDepartmentwillcarryoutatotalof13R&Dprojects,involvingthedevelopmentandresearchofIPS-PET,NR01(TVandcommercialdisplay),IPS-05,MNT,wide-formatIPS06andotherproducts,andhasachievedfruitfulresults.1、Multi-sizecommercialdisplay/MNTproductshavebeenverifiedbymultipleclientstoachievemassproduction;
2、The55-inchTVrealizedthefirstmassproductionsupplyintheLandHcompany,andthe65-inchTVrealizedthemassproductionsupplyintheCcompany;
3、TheIPS05blindholeprojectwasverifiedbytheheadmodulefactoryandmassproductionwasrealized;4、TheIPS06productwassuccessfullyimportedintotheclienttoachievemassproduction.SituationofResearchandDevelopmentInputbytheCompany
| 2020 | 2019 | Increase/Decrease(%) | |
| NumberofResearchandDevelopmentpersons(persons) | 169 | 163 | 3.68% |
| ProportionofResearchandDevelopmentpersons | 12.34% | 12.18% | 0.16% |
| AmountofResearchandDevelopmentInvestment(RMB) | 67,160,964.22 | 53,178,714.33 | 26.29% |
| ProportionofResearchandDevelopmentInvestmentofOperationRevenue | 3.18% | 2.46% | 0.72% |
| AmountofResearchandDevelopmentInvestmentCapitalization(RMB) | 0.00 | 0.00 | 0.00% |
| ProportionofCapitalizationResearchandDevelopmentInvestmentofResearchandDevelopmentInvestment | 0.00% | 0.00% | 0.00% |
TheReasonoftheProminentChangeinTotalAmountofResearchandDevelopmentInputOccupyingtheBusinessIncomeYearonYear
□Applicable√NotapplicableExplanationoftheReasonforSubstantialChangesintheResearchandDevelopmentInput’sCapitalizationRateandItsReasonableness
□Applicable√Notapplicable
5.CashFlow
InRMB
| Items | 2019 | 2018 | Increase/Decrease(%) |
| Subtotalofcashinflowreceivedfromoperationactivities | 2,067,129,172.79 | 2,339,186,620.64 | -11.63% |
| Subtotalofcashoutflowreceivedfromoperationactivities | 2,065,198,240.03 | 1,956,040,832.14 | 5.58% |
| Netcashflowarisingfromoperatingactivities | 1,930,932.76 | 383,145,788.50 | -99.50% |
| Subtotalofcashinflowreceivedfrominvestingactivities | 3,253,008,414.70 | 4,231,006,091.64 | -23.12% |
| Subtotalofcashoutflowforinvestmentactivities | 3,572,079,379.14 | 5,175,229,656.48 | -30.98% |
| Netcashflowarisingfrominvestmentactivities | -319,070,964.44 | -944,223,564.84 | 66.21% |
| Subtotalcashinflowreceivedfromfinancingactivities | 342,660,000.00 | 289,808,607.92 | 18.24% |
| Subtotalcashoutflowforfinancingactivities | 12,855,758.88 | 593,817,393.81 | -97.84% |
| Netcashflowarisingfromfinancingactivities | 329,804,241.12 | -304,008,785.89 | 208.49% |
| Netincreaseincashandcashequivalents | 9,690,648.77 | -864,927,647.04 | 101.12% |
Notetotheyear-on-yearchangeoftherelevantdata
√Applicable□Notapplicable
(1)ThenetcashflowfromoperatingactivitiesdecreasedbyRMB385,226,262.651comparedwiththepreviousperiod,adecreaseof100.54%,Itwasmainlyduetotherecoveryoftradereceivablesinthepreviousyear.
(2)ThenetcashflowfrominvestmentactivitiesincreasedbyRMB-625,152,600.40fromthepreviousperiod,aincreaseof66.21%,ItwasmainlyduetotheinvestmentintheconstructionofLine7projectandthepurchaseandfinancingofidlefunds.
(3)ThenetcashflowfromfinancingactivitiesincreasedbyRMB-633,813,027.01fromthepreviousperiod,aincreaseof208.49%,Itwasmainlyduetorepaymentofloansandinterestfromlastyear,notthisyear.Notestothebigdifferencebetweencashflowfromoperatingactivitiesandnetprofitinthereportingyear
√Applicable□Notapplicable
Duringthereportingperiod,thenetcashflowfromtheCompany'soperatingactivitieswas-2,080,474.11yuan.Thenetprofitintheconsolidatedstatementofthecompanywas43,015,090.66yuan,withsignificantdifferencebetweenthetwo,mainlyduetouseofcreditsalesintheformofsales.ThedifferenceDuringthereportingperiodbetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesandthenetprofitoftheconsolidatedstatementisdetailedinSection12,VII,79(1)"SupplementaryInformationonCashFlowStatement"ofthisreport.III.AnalysisofNon-coreBusiness
√Applicable□Notapplicable
InRMB
| Amount | Proportionintotalprofit | Explanationofcause | Sustainable(yesorno) | |
| Investmentincome | 22,599,670.74 | 43.71% | Thedividends,contractfeesandinterestonstructureddepositsfromparticipatingenterpriseswereobtained. | Havethesustainability |
| fairvaluethroughprofitorloss | 2,687,518.74 | 5.20% | Mainlyduetothechangesinthenon-currentfinancialassetsandfairvalueofthestructureddeposits. | Havethesustainability |
| Impairmentofassets | -72,412,477.63 | -140.06% | Lossofinventorypricefalling, | Havethesustainability |
| Non-operatingincome | 1,445,662.38 | 2.80% | Mainlyduetosocialsecurityreturnandotherpayablesthatdonotneedtobepaid. | Notsustainable. |
| Non-operatingexpenses | 138,421.27 | 0.27% | Mainlynon-currentassetsdamageandscraplosses | Notsustainable. |
| Otherincome | 29,506,252.69 | 57.07% | Mainlygovernmentsubsidies | Havethesustainability |
IV.ConditionofAssetandLiabilities
1.ConditionofAssetCausingSignificantChange
InRMB
| Endof2020 | Endof2019 | Proportionincrease/decrease | Notestothesignificantchange | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfund | 279,087,236.95 | 5.62% | 409,564,847.52 | 9.04% | -3.42% | |
| Accountsreceivable | 547,310,217.90 | 11.01% | 365,325,029.38 | 8.06% | 2.95% | |
| Inventories | 480,847,581.44 | 9.68% | 391,717,935.12 | 8.64% | 1.04% | |
| Investmentrealestate | 110,572,471.92 | 2.23% | 112,730,320.90 | 2.49% | -0.26% | |
| Long-termequityinvestment | 147,929,137.23 | 2.98% | 152,209,929.72 | 3.36% | -0.38% | |
| Fixedassets | 790,183,905.38 | 15.90% | 903,229,077.83 | 19.93% | -4.03% | |
| Constructioninprocess | 1,301,750,141.12 | 26.19% | 839,866,275.92 | 18.53% | 7.66% | MainlyduetotheconstructioninvestmentofLine7projects. |
| Long-termloans | 343,100,174.35 | 6.90% | 0.00 | 0.00% | 6.90% | MainlyduetoborrowingofloansforLine7projectthisyear. |
| Tradingfinancingassets | 684,617,260.06 | 13.78% | 830,000,000.00 | 18.32% | -4.54% | Mainlyduetothedecreaseinstructuraldepositsthisyear. |
2.AssetandLiabilitiesMeasuredbyFairValue
√Applicable□Notapplicable
InRMB
| Item | Amountatyearbeginning | Gain/lossonfairvaluechangeinthereportingperiod | Cumulativefairvaluechangerecordedintoequity | Impairmentprovisionsinthereportingperiod | Purchasedamountinthereportingperiod | Soldamountinthereportingperiod | Otherchange | Amountatyearend |
| Financialassets | ||||||||
| 1.Financialassetsmeasuredatfairvaluethroughprofitorloss(excludingderivativefinancialassets) | 830,000,000.00 | 536,575.34 | 2,938,080,684.72 | 3,084,000,000.00 | 684,617,260.06 | |||
| 4．OtherequityInstrumentInvestment | 248,781,946.73 | 3,560,467.08 | 7,474,900.00 | -54,260,086.27 | 190,607,427.54 |
| Subtotaloffinancialassets | 1,078,781,946.73 | 536,575.34 | 3,560,467.08 | 2,938,080,684.72 | 3,091,474,900.00 | -54,260,086.27 | 875,224,687.60 | |
| Total | 30,650,943.40 | 30,650,943.40 | ||||||
| FinancialLiability | 1,078,781,946.73 | 536,575.34 | 3,560,467.08 | 2,938,080,684.72 | 152,857,639.94 | -23,609,142.87 | 905,875,631.00 |
OtherchangeAccordingtotherelevantprovisionsofthenewfinancialinstrumentstandardsontheclassificationoffinancialassets,theinvestmentofRMB28,500,000.00inChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)wasreclassifiedtothesubjectof"othernon-currentfinancialassets";duetoShenzhenXieliAutomobileEnterpriseCo.,Ltd.Ithasbeencancelledandwillhold25,760,086.27yuanofequityinthecompanyforwrite-off.
□Yes√No
3.estrictedassetrightsasoftheendofthisReportingPeriod
SubsidiarySAPOPhotoelectricusespartofitsself-ownedpropertiestoapplyforamortgageloanfromasyndicatewithBankofCommunicationsCo.,Ltd.ShenzhenBranchastheleadbank,andthecompanyprovidesguaranteesforthemortgageloan.Fordetails,pleaserefertohttp://www.cninfo.com.cn.cninfo.com.cn)"AnnouncementontheCompany'sApplicationforBankMortgageGuaranteesforSubsidiaries"(No.2020-19),"AnnouncementontheProgressoftheCompanyProvidingGuaranteesforSubsidiaries"(No.2020-46)
V.Investmentsituation
1.General
□Applicable√Notapplicable
2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
□Applicable√Notapplicable
3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
□Applicable√Notapplicable
4.InvestmentofFinancialAsset
(1)Securitiesinvestment?Applicable√NotapplicableNil
(2)InvestmentinDerivatives
□Applicable√Notapplicable
Nil
5.Applicationoftheraisedcapital
√Applicable□Notapplicable
(1)Generalapplicationoftheraisedfunds
√Applicable□Notapplicable
InRMB10,000
| YearofRaising | WayofRaising | Totalraisedcapital | TotalAmountoftheRaisedFundUsedatthe | TotalamountofRaisedFunds | Amountofraisedcapitalofwhichthepurposewaschangedinthereportperiod | Accumulativeamountofraisedcapitalofwhichthepurposehasbeenchanged | Proportionofraisedcapitalofwhichthepurposehasbeenchanged(%) | TotalAmountoftheUnusedRaisedFundattheCurrentPeriod | UseandWhereaboutsoftheUnusedRaisedFund | AmountoftheRaisedFundwithover2Years’Idling |
| 2013 | Non-publicissue | 96,175.1 | 290.94 | 76,261.44 | 0 | 30,927.22 | 32.16% | 1,224 | Alldepositedinthespecialaccountfortheraisedfunds. | 0 |
| Total | -- | 96,175.1 | 290.94 | 76,261.44 | 0 | 30,927.22 | 32.16% | 1,224 | -- | 0 |
| Notetouseofraisedcapital | ||||||||||
| Duringthereportingperiod,theCompanyactuallyusedtheraisedfundsof290.94millionyuan,andtheaccumulateduseofraisedfundswas76,261.44millionyuan,ofwhich272.65millionyuanofraisedfundswasactuallyusedforthesecondphaseoftheline6projectofTFT-LCDpolarizer-andtheaccumulateduseofraisedfundsforitwas35,266.34millionyuan;theactualuseoftheraisedfundsforthe7thlineprojectwas18.29millionyuan,withtheaccumulateduseofraisedfundsforitwas40,995.10millionyuan. | ||||||||||
(2)Promisedprojectsofraisedcapital
√Applicable□Notapplicable
InRMB10,000
| Committedinvestmentprojectsandinvestment | Projectchanged(includingpartialchange) | Totalraisedcapitalinvestedascommitted | Totalinvestmentafteradjustment(1) | Amountinvestedinthereportingperiod | Accumulatedamountinvestedattheendofthereportingperiod(2) | Investmentprogressendedthereportingperiod(%)(3)=(2)(1) | Datewhentheprojecthasreachedthepredictedapplicablestatus | Benefitrealizedinthereportingperiod | Hasthepredictedresultberealized | Hasanymaterialchangetakenplaceinfeasibility |
| Committedinvestmentprojects | ||||||||||
| Phase-IIprojectofpolarizersheetforTFT-LCD(Line6) | Yes | 96,175.1 | 70,034 | 272.65 | 35,266.34 | 50.36% | June7,2018 | -3,912.88 | No | Yes |
| Theutilizationofthesurplusraisedfunds（Line7project） | No | 18.29 | 40,995.1 | Notapplicable | No | |||||
| Subtotalofcommittedinvestmentprojects | -- | 96,175.1 | 70,034 | 290.94 | 76,261.44 | -- | -- | -3,912.88 | -- | -- |
| Subtotalofcommittedinvestmentprojects | ||||||||||
| No | ||||||||||
| Total | -- | 96,175.1 | 70,034 | 290.94 | 76,261.44 | -- | -- | -3,912.88 | -- | -- |
| Situationaboutnotcominguptoschemedprogressorexpectedrevenueandthereason(inspecificproject) | Notapplicable | |||||||||
| Notestosignificantchangeinfeasibilityoftheproject | Accordingtothelatestsituationoftheindustrydevelopment,theoriginalsecondphaseconstructionschemeoftheTFT-LCDpolarizerwasoptimized,andthenaccordingtotheresultsconcludedbytheexperts,thecompanydecidedtocontinuetopromotetheconstructionoftheNo.6lineproject.Atthesametime,inthelightoftherewasalargefundsgapbetweentheactualraisedcapitalandtheplannedraisedcapitalforthesecondphaseproject,thenbycomprehensiveconsiderationsofthecompany’sproductionlinescaleandtheoperationpressure,thecompanydecidedtoterminatetheprojectofNo.7line,andthecorrespondingamountoffundsof309.2722millionyuan(includinginterests)forNo.7lineprojectshallbechangedforpermanentlysupplementingtheliquidity.TheProposalonAlterationoftheUseofPartoftheRaisedCapitalfortheSecondPhaseProjectofTFT-LCDPolarizerwasexaminedandapprovedinthe2015annualshareholdermeetingonApril21,2016.. |
| Amount,applicationandapplicationprogressoftheunbookedproceeds | Notapplicable |
| Aboutthechangeoftheimplementationsiteoftheprojectsinvestedwiththeproceeds | Notapplicable |
| Adjustmentoftheimplementationwayofinvestmentfundedbyraisedcapital | Notapplicable |
| Abouttheinitialinvestmentintheprojectsplannedtobeinvestedwiththeproceedsandthereplacement | Notapplicable |
| Usingtheidleproceedstosupplementtheworkingcapitalontemporarybasis | Notapplicable |
| Balanceoftheproceedsinprocessofprojectimplementationandthecause | Applicable |
| OnAugust31,2018,inthecompany'ssecondextraordinaryshareholders’meetingof2018,the“ProposalontheUseofSurplusRaisedFundstoInvestintheLarge-scaleTVPolarizerIndustrializationProject(Line7)”wasreviewedandapproved,agreeingtocontinuetodeposit134.7172millionyuanintheoriginalspecialaccountofraisedfundsforthefollow-upexpenditureofline6projectandtheremainingsurplusraisedfundsshallbeusedfortheinvestmentofline7project,withtheamountshallbesubjecttotheinterestsettlementofthebankonthedaythefundsaretransferredout.Accordingtotheusearrangementforthesurplusraisedfunds,onNovember12,2018,theCompanytransferredthesurplusraisedfundsfortheNo.6lineprojectby405.8311millionyuantothenewlyopenedspecialaccountofraisedfundsforprojectofLine7,whichwillbeusedfortheultra-large-sizeTVpolarizerindustrializationproject(Line7),andasofNovember12,2018,thebalanceofthespecialaccountforraisedfundsofline6was80.3569millionyuan.Thereasonsforthesurplusoftheraisedfundswereasfollows:1.theinterestincomeandtheinvestmentincomeofthebankwealthmanagementproductsweregeneratedduringthedepositoftheraisedfunds;2.tograsptheopportunityoftherapiddevelopmentofthedomesticpolarizerindustryandacceleratetheconstructionoftheNo.6lineproject,theCompanyhadinadvanceinvestedsomefundsinthesecondphaseofthepolarizerprojectofLine6,andinviewofthefactthatthefundsraisedatthetimewereinplace,astherewasalargefundinggapbetweentheactualraisedfundsandtheplannedandtheoriginalinvestmentprojectneededtobere-demonstrated,theCompanydidnotreplacetheadvanceinvestmentintimeaftertheraisedfundswerereceived;3.thesecondphaseofthepolarizerprojectwassubsidizedbytheNationalDevelopmentandReformCommissionandtheShenzhenMunicipalGovernmentaftertheprojectwasestablished,whichhadbeenallputintotheprojectconstructionaccordingtotherequirements,therebyreducedtheinvestmentoftheraisedfundsaccordingly;4.toensuretheoriginalinvestmentprojecttohaveagoodmarketprospectandprofitability,theCompanyoptimizedtheconstructionplanoftheoriginalraised-fundsinvestmentprojectofNo.6line,anditadoptedthecostcontrol,optimizedtheproductionprocessandtookothermeasurestoachievereasonablesavingsunderthepremiseofensuringtheoriginaldesignandtechnicalconditionsoftheproject. | |
| Aboutapplicationandstatusoftheproceedsunused | AsofDecember31,2020,thebalanceofthespecialaccountforraisedfundswas12.24millionyuan,ofwhich12,237,500yuanwasdepositedinthespecialaccountforfundsraisedforline6projects,and0.25millionyuanwasdepositedinthespecialaccountforfundsraisedforline7projects. |
| Problemsexistinginapplicationoftheproceedsandtheinformationdisclosureorotherissues | AsofDecember31,2020,thecumulativeinvestmentofPhase2Line6projectwas699.5442millionyuan,accountingfor99.89%ofthetotalinvestmentof700.34millionyuanafterthechange,ofwhichtheactualpaidinvestmentwas689,428,400yuan(usingraisedfundsof352.6634millionyuan,usingitsownCapitalandgovernmentfunds336,765millionyuan).AsofDecember31,2020,theaccumulatedcontractvalueoftheLine7projectwas1.628,631,700yuan,andtheactualpaymentwas1,468,765,700yuan(usingraisedfundsof409,951,100yuan,usingself-ownedfundsandgovernmentfundsof1,058,814,700yuan). |
(3)Changesofraisedfundsprojects
□Applicable√NotapplicableNilVI.SignificantAssetandRightOffering
1.SituationofSignificantAssetSale
□Applicable√NotapplicableNil
2.SituationofSubstantialStakeSale
□Applicable√Notapplicable
VII.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies
√Applicable□NotapplicableSituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany
InRMB
| CompanyName | Companytype | Sectorsengagedin | Registeredcapital | Totalassets | Netassets | Turnover | Operatingprofit | NetProfit |
| ShenzhenLisiIndustrialDevelopmentCo.,Ltd. | Subsidiary | Domestictrade,Lease | 2,360,000.00 | 30,938,547.89 | 24,519,148.66 | 6,951,857.86 | 2,233,445.59 | 2,141,270.87 |
| ShenzhenHuaqiangHotel | Subsidiary | Accommodation,businesscenter; | 10,005,300.00 | 24,454,466.85 | 20,083,112.54 | 9,003,811.17 | 2,644,133.99 | 2,384,485.24 |
| ShenfangPropertyManagementCo.,Ltd. | Subsidiary | Propertymanagement | 1,600,400.00 | 11,679,454.92 | 4,432,647.95 | 15,328,717.06 | 533,169.50 | 498,101.05 |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Subsidiary | Productionoffullyelectronicjacquardknittingwholeshape | 13,000,000.00 | 39,107,997.35 | 18,372,348.27 | 60,503,325.78 | 2,119,203.22 | 2,045,056.52 |
| SAPOPhotoelectricCo.,Ltd. | Subsidiary | Productionandsalesofpolarizer | 583,333,333.00 | 3,669,743,743.06 | 2,792,318,431.95 | 1,954,299,219.22 | 9,932,052.86 | 10,777,938.39 |
| ShenzhenShenfangImport&exportCo.,Ltd. | Subsidiary | Operatingimportandexportbusiness | 5,000,000.00 | 28,781,153.62 | 9,336,438.49 | 0.00 | -257,812.90 | -324,417.58 |
| Shengtou（HK）Co.,Ltd. | Subsidiary | Salesofpolarizer | HKD10,000 | 8,059,134.16 | 5,865,258.97 | 3,947,190.95 | -440,853.34 | -440,853.34 |
AcquirementanddisposalofsubsidiariesintheReportingperiod
□Applicable√NotapplicableNoteThefinancialdataofSAPOPhotoelectricmentionedinthetableabovearethefinancialstatementsdataofitsparentcompanyandnon-consolidatedstatementsdata.ShenzhenShenzhenTextileImportandExportCo.,Ltd.andShengboPhotoelectricCompanyLimitedareSAPOPhotoelectric.ThefluctuationofsubsidiarySAPOPhotoelectricPerformanceandthereasonsforitschangearedescribedindetailinSectionIVOperatingSituationDiscussionsandAnalysisandSectionVImportantMatters.SectionIII:PerformanceofCommitments.Thecommitmentmadebyshareholdersandcounterpartiesinreportingannualoperatingperformance.
VIII.SpecialpurposevehiclecontrolledbytheCompany
□Applicable√NotapplicableIX.ProspectforfuturedevelopmentoftheCompany
1.TheDevelopmentTrendoftheIndustryInrecentyears,thenewdisplayindustryinMainlandChinahasmaintainedpositivegrowth.Theoverallgrowthratehassurpassedtheglobalindustrialgrowthrateformanyconsecutiveyears.Theindustrialstructurehasbeencontinuouslyimproved,andthemarket’scompetitivenesshassteadilyimproved.RelyingonmultipleTFT-LCDpanelproductionlines,Chinahasenteredfullproduction.TheLCDpanelindustryinmainlandChinaranksfirstintheworldintermsofrevenueandshipmentarea.ComparedwiththerapiddevelopmentofthenewdisplayindustryinmainlandChina,overseasmanufacturershavechosentograduallyshrinkandwithdraw.SamsungDisplayandLGDhaveannouncedthattheywillgraduallyshutdownLCDpanelproductionlines.LGChemsolditsLCDpolarizerbusiness.Withthewithdrawalofforeignmanufacturersandthetransferofhigh-qualityindustrialassetstomainlandChina,thefocusofthenewdisplayindustryisacceleratingtoconcentrateinmainlandChina.
Overall,thedevelopmentofmycountry'snewdisplayindustryhasshiftedfromthestageoflarge-scalenewproductionlinestothestageofcompletionandshipment.Polarizersarewidelyusedinnewdisplayfields,andtoalargeextentdeterminetheperformanceofnewdisplayproducts.ThecontinuousgrowthofpanelmanufacturersinmainlandChinahasledtoasubstantialincreaseinthedemandforpolarizers.Accordingtothestatisticsoftheindustry'sauthoritativeconsultingorganizationIHS,itisexpectedthatthemarketdemandforpolarizersinmainlandChinawillrapidlyincreasefrom280millionsquaremetersin2018to2023.465millionsquaremeters,themarketdemandforpolarizersisgrowingrapidly.Itisagooddevelopmentopportunityformainlandpolarizermanufacturerswhohavemarketadvantages,policyadvantages,andgeographicadvantages.
Atpresent,theglobalpolarizerindustryismainlycomposedofthreeechelons.ThefirstechelonisfirmlyheldbymajormanufacturersinJapanandSouthKorea;thesecondechelonismainlycomposedofsomewell-knowncompaniesinJapanandSouthKoreaandTaiwaneseenterprisesinmycountry;thecompanyisinthethirdechelon.ItisthemostimportantdomesticpolarizerR&D,productionandsalesenterprise.
2.Thecompany'sdevelopmentstrategy
2021isacrucialyearforthecompany'spolarizerline7project,anditisalsoayearofopportunityforthecompanytoseizethemarketwindowperiod.Facingthecomplexmarketenvironment,opportunitiesandchallengescoexist,onlybyunityandforgeaheadcanwemaintainprogressanddevelopmentinthefiercecompetition.Themainbusinessmustcontinuetoimproveprofitability.First,continuetoincreasetheadjustmentofcustomerstructureandproductstructure,andincreasetheproportionofhighvalue-addedproducts;second,seekbreakthroughsinproductresearchanddevelopmentinthemid-to-high-endmarket;third,furtherimproveproductqualityandProductionefficiency;Fourth,continuetopromotecostandcostreduction;Fifth,shortentheclimbingperiodofLine7andstrictlycontrolthetimenodestoensurethesmoothrealizationofmassproductionofLine7andincreasethecompany'smarketshare.Textileenterprisescontinuetoreformandinnovateandmaintainprofitability.Propertyenterprisesstrengthenedtheirserviceworkandcontinuedtogeneraterevenueandincreaseefficiency.Strengthentheconstructionoftalents,improvetechnicalcapabilities,andenhanceR&Dandinnovationcapabilities;continuetodeepenreformstostimulatecorporatevitality;constantlyfocusonsafety
production,strengthenpartystyleandcleangovernment,andthoroughlyimplementthe"twostudiesandonework"learningandeducationsystemtonormalizeandstrengthenResponsibility.Fullycompletevarioustasksin2021,andstrivetorealizethecompany'ssustainableandhealthybusinessdevelopment.
3.Possiblerisks
(1)MacroeconomicRisksIn2020,underthehugeimpactofthenewcoronaviruspneumoniaepidemic,theglobaleconomywillbeinasevererecession;in2021,thedevelopmentoftheepidemicwillstillbeuncertain,andtheglobaleconomywillstillbeshroudedinthehazeoftheepidemic.Lookingforwardto2021,thecountrywillcontinuetomaintaineconomicstability,focusondemand-sidemanagement,andinsistonexpandingdomesticdemand.Thefirstistofurtherstimulateconsumptionpotential;thesecondistostimulatetheinvestmentvitalityofthewholesociety;thethirdistopromoteemploymentandimprovesocialsecurity;andthefourthistooptimizetheincomedistributionstructureandexpandMiddle-incomegroup.Facedwiththeincreasinglycomplexinternationalenvironmentandtheintensifiedcompetitionamongcountriesintheindustrialchainandsupplychain,thestateproposesto"strengthennationalstrategicscientificandtechnologicalstrength"and"enhancetheindependentcontrollabilityoftheindustrialchainsupplychain"togivefullplaytoenterprisesintechnologicalinnovation.Themainroleofthe.Asanimportantpartoftheelectronicinformationindustry,theindustryinwhichthecompanyislocatedwillbestronglysupportedbynationalpolicies,butitcannotberuledoutthatunpredictablefluctuationsinthemacroeconomymayposeriskstothecompany'sperformance..
(2)MarketrisksThepolarizerindustryisanimportantpartofChina'sfuturemanufacturingdevelopment.Thedemandfordisplaypanelsandthedevelopmentofcorrespondingtechnologiesarechangingwitheachpassingday.Thedomesticsubstitutionprocessofthepolarizerindustryisunderway.Withthegradualmassproductionofthe10.5generationline,thesuper-largesizemarketNewchangeswillbeusheredin.Ifthecompany’stechnologyandproductscannotrespondtotheneedsoftheapplicationfieldintime,thewide-formatpolarizerproductsandapplicationsfallshortofexpectations,ortheintensifiedmarketcompetitioncausesthepriceofdisplayproductstofall,andthepressureofpricecutsistransmittedupwardstothepolarizermarket.Willhaveanadverseeffectonthecompany.
(3)Raw-materialrisksThecorepatentsofpolarizerterminalmaterialshavehightechnicalbarriersandarebasicallymonopolizedbyforeignmanufacturers.Patentsarethemainreasonforrestrictingthelocalizationofluminescentmaterials.Atpresent,thekeyrawmaterialsPVAfilmandTACfilmrequiredforthemanufactureofpolarizersarebasicallyownedbyJapanesecompanies.Monopoly,theupstreamsupportingrawmaterialproductionlineandproductiontechnologyareconstrainedbytheJapaneseside.Comparedwiththecompleteindustrialchainmodelofinternationalmanufacturersfromupstreamrawmaterialstopolarizerstodisplaypanels,thecompanydoesnothavethecorrespondingcompleteindustrialsupportingfacilitiesandistemporarilyunabletomakefulluseoftheindustry.Integrationeffect,andthepriceofthemainmembranematerialsisaffectedbytheproductioncapacityofsuppliers,marketdemandandtheyenexchangerate,whichaffectstheunitcostofthecompany’sproducts.
4.Thekeyworkin2021
(1)ContinuetoimprovetheprofitabilityofthemainbusinessOneistocontinuetoincreasetheadjustmentofcustomerstructureandproductstructuretoincreasethe
proportionofhighvalue-addedproducts;thesecondistoseekbreakthroughsinthemid-to-high-endmarketforproductresearchanddevelopment;thethirdistofurtherimproveproductqualityandproductionefficiency;thefourthistocontinuetopromotecostreductionReducefees;Fifth,continuetoattractoutstandingtalentstojoin;Sixth,strengthencomprehensiveriskmanagement,improveriskcontrolandresponsecapabilities,andfurtherensuresafe,steadyandsustainabledevelopment.
(2)ShortentheclimbingperiodofLine7andrealizeproductionassoonaspossibleWiththecooperationofthepartnerJinjiangGroup,activelypromotethetechnicalcollaborationwithKunshanZhimeiMaterialTechnologyCo.,Ltd.,earnestlylearnfromthetechnicalteamaboutequipmentdebugging,productionoperation,operationmanagementandotherexperience,andstrengthentheproductionwithNittoDenkoCo.,Ltd.Manufacturingtechnologyexchanges,shortenedtheramp-upperiodofLine7,strictlycontrolledtimenodes,ensuredthesmoothrealizationofmassproductionofLine7,andincreasedthecompany'smarketshare.
(3)Ensurestablegrowthofthepropertybusinessandprovideeffectivesupportforthecompany'sdevelopmentPropertycompaniescloselyfollowthechangesinthesurroundingbusinessconditionsoftheproperty,operatearoundtherentalrateandcapitalrecoveryrate,overcometheageoftheproperty,poorconditions,andoutdatedfacilities,continuetotapthepotentialtoincreaseefficiency,improveservicelevels,andimproveoperatingefficiency
(4)Continuetoexploreanddeepenthereformanddevelopmentpath,optimizethesystemandmechanismThecooperationperiodbetweenthecompanyandJinjiangGrouphasexpiredforthreeyears.Basedontheoriginalintentionofcooperationandwin-win,wemustcontinuetodeepenthereformanddevelopmentpath,andfurtherexploretheimplementationofmarket-orientedmechanismsunderthemixedownershipmodeltoachievethereformgoalof"mixingandreforming".ContinuetopromoteShengboOptoelectronics'operationimprovement,managementoptimizationandmarket-orientedmechanismestablishment,optimizethecorporategovernancestructure,establishasoundsystemofchecksandbalancesofrightsandresponsibilities,effectivelyplayasupervisoryrole,andstrengthenriskpreventioncapabilities.
(5)StrengthentheconstructionoftalentechelonandenhancethecorecompetitivenessofenterprisesAtpresent,thecompanyisinacriticalperiodofdeepeningreformanddevelopment.Thebusinessisdevelopingrapidlyandtheexistingtalentpoolisinsufficient.Itisnecessarytocontinuouslyimprovethequalityoftheexistingtalentteam.Accordingtothecompany'sfuturedevelopmentstrategy,continuetooptimizeandimprovethecompany'sprofessionalandtechnicalrankevaluations.Systemandincentivesystem,throughvariousformsoftrainingtoincreasetheincentiveandcultivationofkeyreservetalents,improvethestabilityandenthusiasmofkeyreservetalents,andgraduallyestablishareservetalentechelonforeachkeypositionofthecompany,soastocontinuouslyimprovethecorecompetitivenessofthecompany.Sustainabledevelopmentcapability.
(6)DoagoodjobinsafeproductionandmaintaintheharmonyandstabilityoftheenterpriseThecompany’sproductionsafetytaskisveryarduous,andthecompanymusttightenthe“string”ofproductionsafetyatalltimesanddoagoodjobinensuringproductionsafety.Thecompanywillregularlycarryoutlarge-scalesafetyinspections,comprehensivelyinspecttheimplementationofthesafetyproduction
responsibilitysystem,safetyproductionregulations,standardprocedures,hiddendangerinvestigationandrectificationandemergencymanagement,andformulateandimplementeffectiverectificationmeasurestoeliminatepotentialsafetyhazards.
(7)StrengthenpartybuildingandinnovatingenterprisecultureThecompany’spartycommitteewillcontinuetocarryoutin-depth"twostudiesandonework"specialeducationactivities,strictlyimplementthe"threemeetingsandonelesson"system,andstrengthentheconstructionofthepartybuildingsystemandthebuildingofpartymembers.Earnestlyimplementthe"tworesponsibilities"andpaycloseattentiontotheconstructionofpartystyleandcleangovernment.TheDisciplinaryCommitteeofthecompanymustearnestlyperformitsdutiesofsupervisionandexecutionofdisciplineandaccountability,andstrengthentheintegrityoftheenterprise.X.Particularsaboutresearches,visitsandinterviewsreceivedinthisreportingperiod
1.Particularsaboutresearches,visitsandinterviewsreceivedinthisreportingperiodApplicable√□Notapplicable
| Receptiontime | Receptionplace | Thewanyofreception | Objecttypeofreception | Receptionperson | Themaincontentofthediscussionandtheinformationprovided | Indexofthebasicsituationofthesurvey |
| June24,2020 | Meetingroomonthesixthfloorofthecompany | Fieldresearch | agency | FounderSecuritiesCo.,Ltd | Thecompany'smainbusiness,line7projectconstructionprogress,futuredevelopmentplans,etc. | Fordetails,pleaserefertothe"000045ShenzhenTextileAResearchActivityInformation20200628"(No.2020-01)bythecompanyhttp://www.cninfo.com.cn. |
| December24,2020 | Meetingroomonthesixthfloorofthecompany | Fieldresearch | others | RongjieInvestmentHoldingGroupCo.,Ltd. | Thecompany’smainbusiness,line7projectconstructionprogress,futuredevelopment | Fordetails,pleaserefertothe"InvestorRelationsActivityRecordFormonDecember24,2020"(No.2020-02)bythecompany |
| plans,etc. | http://www.cninfo.com.cn. | ||
| Numberofreceptions | 2 | ||
| Numberofreceptioninstitutions | 1 | ||
| Numberofindividualsreceived | 0 | ||
| Numberofotherobjectsreceived | 1 | ||
| Whethertodisclose,discloseordivulgeundisclosedmaterialinformation | No | ||
.
Chapter5:ImportantEventsI.SpecificationofprofitdistributionofcommonsharesandcapitalizingofcommonreservesFormulation,implementationandadjustmentofprofitdistributionpolicyofcommonsharesespeciallycashdividendpolicyduringthereportingperiod
□Applicable√Notapplicable
Theprofitdistributionpreplanorproposalandthepreplanorproposalofconversionofthecapitalreserveintosharecapitalinthepastthreeyears(withthereportingperiodinclusive):
Thecompany’s2020profitdistributionplanis:basedonthecompany’stotalsharecapitalof507,772,279sharesasofDecember31,2020,acashdividendofRMB0.30(includingtax)willbedistributedtoallshareholdersforevery10shares,andatotalcashdividendofRMB15,233,168.37(includingtax)willbedistributed.Tax),theremainingundistributedprofitswillbecarriedforwardtothenextyear;nobonusshareswillbegiven,andnocapitalreservewillbeconvertedintosharecapital.
Ifthetotalsharecapitalofthecompanychangesduetofactorssuchastherepurchaseandcancellationofrestrictedstocksbeforetheimplementationofthedistributionplan,thetotalsharecapitalontheequityregistrationdatewhenthedistributionplanisimplementedinthefuturewillbeusedasthebase,andacashdividendofRMB0.30willbedistributedtoallshareholdersforevery10shares.(Taxincluded),thespecificamountissubjecttoactualdistribution.Thecompany'ssharesheldbythecompanydonotparticipateintheprofitdistribution.
Dividenddistributionofthelatestthreeyears
InRMB
| Yearforbonusshares | Amountforcashbonus(taxincluded) | Netprofitattributabletocommonstockshareholdersoflistedcompanyinconsolidationstatementforbonusyear | Ratioofthecashbonusinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement | Proportionforcashbonusbyotherways(i.e.sharebuy-backs) | Ratioofthecashbonusbyotherwaysinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement | Totalcashbonus(otherwaysincluded) | Ratioofthetotalcashbonus(otherwaysincluded)innetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement |
| 2020 | 15,233,168.37 | 36,933,796.26 | 41.24% | 0.00 | 0.00% | 15,233,168.37 | 41.24% |
| 2019 | 0.00 | 19,679,910.43 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| 2018 | 0.00 | -22,980,624.93 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
Inthereportingperiod,boththeCompany’sprofitandtheparentcompany’sretainedearningswerepositivehowevernotcashdividenddistributionproposalhasbeenputforward.
□Applicable√Notapplicable
II.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
√Applicable□Notapplicable
| Numberofbonussharesforevery10shares(shares) | 0 |
| Dividendsper10shares(RBM)(taxincluded) | 0.3 |
| Thesharecapitalbaseofthedistributionplan(shares) | 507,772,279 |
| Cashdividendamount(RMB)(taxincluded) | 15,233,168.37 |
| Cashdividendamountinotherways(suchassharerepurchase)(RMB) | 0.00 |
| Totalcashdividends(includingothermethods)(RMB) | 15,233,168.37 |
| Distributableprofit(RBM) | 33,056,666.16 |
| Theratiooftotalcashdividends(includingothermethods)tototalprofitdistribution | 100% |
| Situationofthiscashdividend | |
| Whenthecompany'sdevelopmentstageisinthegrowthperiodandtherearemajorcapitalexpenditurearrangements,whentheprofitdistributioniscarriedout,theproportionofcashdividendsinthisprofitdistributionshouldbeatleast20% | |
| Detailedexplanationoftheprofitdistributionorcapitalreservetransferplan | |
III.Commitmentstofulfillthesituation
1.Thefulfilledcommitmentsinthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebythecompany,shareholder,actualcontroller,acquirer,director,supervisor,seniormanagementpersonnelandotherrelatedparities.
√Applicable□Notapplicable
| Commitment | Commitmentmaker | Type | Contents | Timeofmakingcommitment | Periodofcommitment | Fulfillment |
| Commitmentonsharereform | ShenzhenInvestmentHoldingsCo.,Ltd. | Sharereductioncommitment | AsShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,committedwhentherestricted-for-salesharesfromthesharesrestructuringwerelistedforcirculationinthemarket:i.iftheyplantosellthesharesthroughthesecuritiesexchangesysteminthefuture,andthedecreaseofthesharestheyholdreaches5%within6monthsafterthefirstdecrease,theywilldisclosean | August4,2006 | Sustainedandeffective | UnderFulfillment |
| announcementindicatingthesalethroughthecompanywithintwotradingdaysbeforethefirstdecrease;ii.Theyshallstrictlyobservethe“GuidelinesonTransferofRestricted-for-saleOriginalSharesofListedCompanies”andtheprovisionsoftherelevantbusinessprinciplesofShenzhenStockExchange. | ||||||
| Commitmentintheacquisitionreportorthereportonequitychanges | ||||||
| Commitmentmadeupontheassetsreplacement | ||||||
| Commitmentsmadeuponissuance | ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | ShenzhenInvestmentHoldingsCo.,Ltd.signeda“LetterofCommitmentandStatementonHorizontalCompetitionAvoidance”whenthecompanyissuednon-publicstocksin2009.PursuanttotheLetterofCommitmentandStatement,ShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiary,subsidiariesundercontroloranyothercompaniesthathaveactualcontrolofitshallnotbeinvolvedinthebusinessthesameasorsimilartothoseShenzhenTextilecurrentlyorwillruninthefuture,oranybusinessesoractivitiesthatmayconstitutedirectorindirectcompetitionwithShenzhenTextile;iftheoperationsofShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitcompetewithShenzhenTextileinthesameindustryorcontradictthe | October9,2009 | Sustainedandeffective | UnderFulfillment |
| interestoftheissuerinthefuture,ShenzhenInvestmentHoldingsCo.,Ltd.shallurgesuchcompaniestoselltheequity,assetsorbusinesstoShenzhenTextileorathirdparty;whenthehorizontalcompetitionmayoccurduetothebusinessexpansionconcurrentlynecessaryforShenzhenInvestmentHoldingsCo.,Ltd.anditswhollyownedsubsidiaries,subsidiariesundercontrolorothercompaniesthathaveactualcontrolofitandShenzhenTextile,ShenzhenTextileshallhavepriority. | |||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | Commitmentsonhorizontalcompetition,relatedtransactionandcapitaloccupation | Thecommitmentsduringtheperiodnon-publicissuancein2012:1.ShenzhenInvestmentHoldings,asthecontrollingshareholderofShenzhenTextile,currentlyhasn'ttheproductionandbusinessactivitiesofinter-industrycompetitionwithShenzhenTextileoritsshare-holdingsubsidiary.2.ShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedtheactualcontrolrightscan'tbedirectlyandindirectlyonbehalfofanyperson,companyorunittoengageinthesameorsimilarbusinessinanydistrictsinthefuturebytheformofshare-holding,equityparticipation,jointventure,cooperation,partnership,contract,lease,etc.,andensurenottousethecontrollingshareholder'sstatustodamagethelegitimaterightsandinterestsofShenzhenTextileandothershareholders,ortogaintheadditionalbenefits.3.Iftherewillbethesituationofinter-industrycompetitionwithShenzhenTextileforShenzhenInvestmentHoldingsanditsshare-holdingsubsidiariesorotherenterprisesownedthe | July14,2012 | Sustainedandeffective | UnderFulfillment |
| actualcontrolrightsinthefuture,ShenzhenInvestmentHoldingswillpromotetherelatedenterprisestoavoidtheinter-industrycompetitionthroughthetransferofequity,assets,businessandotherways.4.AbovecommitmentswillbecontinuouslyeffectiveandirrevocableduringShenzhenInvestmentHoldingsasthecontrollingshareholderofShenzhenTextileorindirectlycontrollingShenzhenTextile. | ||||||
| Equityincentivecommitment | ShenzhenTextile(Holdings)Co.,Ltd. | Othercommitment | 1.Thecompanyundertakesnottoprovideloans,loanguarantees,andanyotherformsoffinancialassistancetotheincentiveobjectsforobtainingtherestrictedstocksintheincentiveplan;2.ThecompanyundertakesthatthereisnocircumstancethatthestockincentiveshallbeprohibitedasstipulatedintheprovisionsofArticle7ofthe“MeasuresfortheManagementofStockIncentivesofListedCompanies”. | November27,2017 | December27,2021 | UnderFulfillment |
| Othercommitmentsmadetominorityshareholders | ||||||
| Executedtimelyornot? | Yes | |||||
| Ifthecommitmentsfailedtocompletetheexecutionwhenexpired,shouldspecificallyexplainthereasonsofunfulfillmentandthenetstage | Notapplicable | |||||
2.Theexistenceofthecompany'sassetsorprojectsearningsforecastsandearningsreportingperiodisstillintheforecastperiod,thecompanyhasassetsorprojectsmeettheoriginalprofitforecastmadeandthereasonsexplained
□Applicable√NotapplicableIV.Particularsaboutthenon-operatingoccupationoffundsbythecontrollingshareholder
□Applicable√NotapplicableNonon-operatingoccupationfromcontrollingshareholdersanditsrelatedpartyintheperiod.V.ExplanationoftheSupervisoryCommitteeandIndependentDirectors(Ifapplicable)ontheQualifiedAuditor’sReportIssuedbytheCPAs.
□Applicable√NotapplicableVI.Explainchangeoftheaccountingpolicy,accountingestimateandmeasurementmethodsascomparedwiththefinancialreportingoflastyear.
√Applicable□Notapplicable
1.Changesinaccountingpolicies
(1)Overviewofchangesinaccountingpolicies
1.ReasonforchangeTheMinistryofFinanceofthePeople'sRepublicofChina(hereinafterreferredtoasthe"MinistryofFinance")revisedandissuedthe"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"(CaiKuai[2017]No.22)(hereinafterreferredtoasthe"NewRevenueStandards")onJuly5,2017);OnSeptember19,2019,the"NoticeonRevisingandIssuingtheFormatofConsolidatedFinancialStatements(2019Edition)"(CaiKuai[2019]No.16)andthe"NoticeonRevisingandIssuingtheFormatofGeneralEnterpriseFinancialStatementsfor2019"wereissuedonSeptember19,2019.(CaiKuai[2019]No.6)Supportingimplementation.
Accordingtotheregulations,thecompanyshallimplementthe"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"fromJanuary1,2020,andthe"NoticeonRevisingandIssuingtheFormatofConsolidatedFinancialStatements(2019Edition)"shallbeimplementedfromthedateofissuance.
2.Accountingpoliciesbeforeandnow
Beforethischange,thecompanyimplementedthe"AccountingStandardsforBusinessEnterprises-BasicStandards"issuedbytheMinistryofFinanceandvariousspecificaccountingstandards,guidelinesfortheapplicationoftheAccountingStandardsforBusinessEnterprises,anInterpretationAnnouncementoftheAccountingStandardsforBusinessEnterprisesandotherrelevantregulations.Afterthisaccountingpolicychange,thecompanywillimplementthe"AccountingStandardsforBusinessEnterprisesNo.14-Revenue"(CaiKuai[2017]No.22)fromJanuary1,2020;thecompany's2019financialstatementsandsubsequentfinancialstatementswillbeImplementthe"NoticeonRevisingandIssuingtheFormatofConsolidatedFinancialStatements(2019Edition)"(CaiKuai[2019]No.16).Exceptfortheabove-mentionedchangesinaccountingpolicies,otherunchangedpartsarestillinaccordancewiththe"AccountingStandardsforBusinessEnterprises-BasicStandards"issuedbytheMinistryofFinanceinthepreviousperiodandvariousspecificaccountingstandards,guidelinesfortheapplicationofAccountingStandardsforBusinessEnterprises,InterpretationAnnouncementsonAccountingStandardsforBusinessEnterprises,andotherrelevantregulationscarriedout.
(2)Themaincontentofthisaccountingpolicychange
1.Themainchangestothenewrevenuestandards:
①Incorporatethecurrentrevenueandconstructioncontractstandardsintoaunifiedrevenuerecognitionmodel;
②Usethetransferofcontrolrightsinsteadofthetransferofriskrewardsasthecriterionfordeterminingthetimingofrevenuerecognition,andintroduceafive-stepmodelofrevenuerecognitionandmeasurement;
3Provideclearerguidanceontheaccountingtreatmentofcontractsthatincludemultipletransaction
arrangements;
4Clearregulationsaregivenfortherevenuerecognitionandmeasurementofcertainspecifictransactions(or
events).
2.Themaincontentoffinancialstatementformatadjustment:
InaccordancewiththerequirementsofCaikuai[2019]No.6andCaikuai[2019]No.16,thecompanyadjustedthelistingofthefollowingfinancialstatementitemsandadjustedthecomparativedataforcomparableaccountingperiodsaccordingly:
(1)Balancesheet
①The"NotesReceivableandAccountsReceivable"itemissplitinto"NotesReceivable"and"AccountsReceivable"items;
②The"NotesPayableandAccountsPayable"itemissplitinto"NotesPayable"and"AccountsPayable"items;
③Newlyaddeditemssuchas"receivablefinancing","righttouseassets","leaseliabilities",and"specialreserves".
(2)Incomestatement
①Adjusttheitemof"minus:assetimpairmentloss"to"plus:assetimpairmentloss(lossesarelistedwith"—")";
②Underthe"Investmentincome"lineitem,thelineitem"Including:thefinancialassetderecognitionincomemeasuredatamortizedcost"hasbeenadded;
③Adjustedthepresentationorderofthelineitemsof"assetimpairmentloss"and"creditimpairmentloss".
(3)CashflowstatementThelineitemssuchas"netincreaseinfinancialassetsheldfortradingpurposes"and"cashreceivedfromissuanceofbonds"intheoriginalconsolidatedcashflowstatementweredeleted.
(4)Owner'sequitytableNewlyadded"specialreserve"lineitemsandcolumnitems.
(3)Theimpactofthisaccountingpolicychangeonthecompany
1.Inaccordancewiththetransitionalprovisionsoftheoldandnewstandards,thecompanywillimplementthenewrevenuestandardsfromJanuary1,2020,andadjusttheinitialretainedearningsandtheamountofotherrelateditemsinthefinancialstatementsbasedonthecumulativeimpactofthefirstimplementationofthestandards.Toadjust.Theimplementationofthenewrevenuestandardisnotexpectedtohaveasignificantimpactonthecompany'soperatingresults,norwillitcauseasignificantchangeinthecompany'srevenuerecognitionmethod,andwillnothaveasignificantimpactonthefinancialstatements.
2.Theadjustmentofthefinancialstatementformatonlyaffectsthefinancialstatementformatandthepresentationofsomesubjects,doesnotinvolveretrospectiveadjustmentsinpreviousyears,anddoesnotaffectthecompany'snetassets,netprofitandotherrelatedfinancialindicators
VII.Explainretrospectiverestatementduetocorrectionofsignificantaccountingerrorsinthereportingperiod
□Applicable√NotapplicableNomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.
VIII.Explainchangeoftheconsolidationscopeascomparedwiththefinancialreportingoflastyear.
√Applicable□NotapplicableAsofDecember31,2020,thecompanyhasincluded7subsidiariesinthescopeofconsolidation.Fordetails,pleaserefertoSection12-9,1"EquityinSubsidiaries"ofthisreport.Thescopeofthecompany’sconsolidationthisyearhasincreasedbyonehouseholdcomparedtothepreviousyear.Fordetails,pleaserefertoSection12-8,5"ChangesinConsolidationScopeforOtherReasons"ofthisreport.IX.Engagement/DisengagementofCPAs
CPAscurrentlyengaged
| NameofthedomesticCPAs | GrantThorntonInternationalLtd（SpecialGeneralPartnership） |
| Remunerationfordomesticaccountingfirm(RMB10,000) | 82.5 |
| Continuouslifeofauditingservicefordomesticaccountingfirm | 0 |
| NameofdomesticCPA | ChengZhifang,LiYao |
| ContinuousfixednumberofyearfortheauditingserviceprovidedbyCPAindomesticCPAFirms | 0 |
HastheCPAsbeenchangedinthecurrentperiod
√Yes□NoHastoreappointanaccountingfirmduringtheaudit
□Yes√NoHasfulfilledtheapprovalprocedureswhenthereplacementaccountingcompany
√Yes□NoAdetailedexplanationofthereappointmentandchangeofaccountingcompany:
Thecompany’soriginalannualfinancialstatementsandinternalcontrolauditagency,PekingCertifiedPublicAccountants(SpecialGeneralPartnership),hasprovidedauditservicesforthecompanyfor9consecutiveyearsandinsistedonindependentauditingduringthepractice.Principles,reflectthecompany’sfinancialstatusobjectively,fairlyandfairly,earnestlyperformthedutiesoftheauditagency,andsafeguardtheinterestsofthecompanyandallshareholders.Accordingtothe"InterimRegulationsonAuditingtheAnnualFinancialStatementsofState-ownedEnterprisesinShenzhen",basedontheindependence,objectivityandfairnessoftheauditwork,thecompanydecidednottore-appointPekingCertifiedPublicAccountantsastheannualfinancialaccountaftercommunicatingwithPekingCertifiedPublicAccountantsinadvance.Thereportandinternalcontrolauditagency,PekingCertifiedPublicAccountantsclearlyunderstandsthismatterandexpressesitsunderstanding.
Thecompanyheldthe31stmeetingoftheseventhboardofdirectorsonAugust18,2020,andheldthe2020thirdextraordinarygeneralmeetingofshareholdersonSeptember22,2020.The"ProposalontheAppointmentofAuditInstitutionsfor2020"wasreviewedandapproved.,AgreedtoappointGrantThorntonCertifiedPublicAccountants(SpecialGeneralPartnership)(hereinafterreferredtoas"GrantThornton")asthecompany’s2020financialstatementsandinternalcontrolauditserviceagency.Thetotalannualauditfeeis828,000yuan(taxincluded).Theactualsituationoftheauditbusinessandwithreferencetothechargingstandardsoftheauditindustry,negotiatedwithGrantThorntontodeterminetheitemizedexpensesofthefinancialstatementsandinternalcontrolauditbusiness,andsignedrelevantagreementsanddocuments.DescriptionoftheCPAs,financialadviserorsponsorengagedforinternalcontrolauditing
√Applicable□NotapplicableDuringthereportingperiod,thecompanyengagedGrantThorntonInternationalLtd(SpecialGeneralPartnership)asthecompany'sinternalcontrolauditagencyfor2020,withanauditremunerationofRMB820,000(including
travelexpensesandotherexpenses).Theactualsituationoftheauditbusinessandwithreferencetothechargingstandardsoftheauditindustry,negotiatedwithGrantThorntontodeterminetheitemizedexpensesofthefinancialstatementsandinternalcontrolauditbusiness,andsignedrelevantagreementsanddocuments.X.SituationofFacingListingSuspensionandListingTerminationaftertheDisclosureoftheYearlyReport
□Applicable√Notapplicable
XI.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod.
XII.SignificantlawsuitsandarbitrationsoftheCompany
√Applicable□Notapplicable
| Basicsituationoflitigation(arbitration) | Amountinvolved(tenthousandyuan) | Whethertoformestimatedliabilities | Litigation(arbitration)progress | Litigation(arbitration)trialresultsandimpact | Implementationoflitigation(arbitration)judgments | Disclosuredate | DisclosureIndex |
| Forthecompany'smattersinvolvingarbitrationandcompensationofitssubsidiaries'performancecommitmentsin2019,pleasereferto"20.MajorSubsidiariesoftheCompany"in"SectionVImportantMatters"ofthisreport. | 24,478.38 | No | ThearbitrationcasewasheardattheSeventhArbitrationTribunaloftheCourtofArbitrationattheofficeoftheShenzhenStockExchangeat9:30onDecember1,2020. | Inviewofthecompany'sinvolvementinthisarbitrationandtheuncertaintyoftheresultsofthearbitration,JinjiangGroup'sunfulfilledcommitmenttothecompany'ssubsidiaryShengboOptoelectronicsforthe2019annualperformanceis | Asofthedisclosuredateofthisannouncement,thearbitrationhasnotyetbeenawarded. | March11,2020 | Fordetails,pleaserefertothecompany'sdisclosureonMarch11,2020,March28,2020,November5,2020,andDecember17,2020.“AnnouncementontheCompany’sInvolvementinArbitration |
| Asofthedisclosuredateofthisannouncement,thearbitrationhasnotyetbeenawarded. | uncertain. | ”(No.2020-07),“AnnouncementontheCompany’sProgressinArbitration”(No.2020-21),“AnnouncementontheCompany’sProgressinArbitration”(2020-50),“AbouttheCompany’sProgressinArbitration”(2020-50),AnnouncementonProgressInvolvingArbitration(No.2020-56)。 |
XIII.SituationofPunishmentandRectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.XIV.CreditConditionoftheCompanyanditsControllingShareholdersandActualControllers
√Applicable□NotapplicableDuringreportingperiod,therewasnoeffectivejudgmentofacourtandlargeamountofdebtmaturitythatthecompany,itscontrollingshareholdersandactualcontrollerfailedtoperformorpayoff.
XV.ImplementationSituationofStockIncentivePlanoftheCompany,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures
√Applicable□Notapplicable
1.FormulationofRestrictedStockIncentivePlan
OnNovember27,2017,theProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanwasexaminedandapprovedinthe7
th
boardmeetingofthecompany’s7
th
sessionboardofdirectors,andrelatedproposalsagreedtofulfilltherelevantproceduresandrelatedproposalsagreedtofulfilltherelevantproceduresOnDecember11,2017,theSASACagreedinprincipletoimplementtherestrictedstockincentiveplan.OnDecember14,2017,thecompanyheldthethirdextraordinaryshareholders'generalmeetingin2017,whichreviewedandapprovedtheProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlan(Draft)andsummaryandProposalontheCompany'sImplementationMeasuresofEvaluationforthe2017RestrictedStockIncentivePlanandotherissues.
2.InformationongrantingtherestrictedstockOnDecember14,2017,thecompanyheldthe8thmeetingofthe7thBoardofDirectors,whichreviewedandapprovedthe“ProposalonAdjustingtheListofIncentiveObjectsandGrantingQuantityofthe2017RestrictedStockIncentivePlan”andthe“ProposalonGrantingtheRestrictedStockstoIncentiveObjects”.Therestrictedsharesactuallygrantedbythisstockincentiveplantotaled4,752,300shares,and119incentiveobjectsweregranted,withthegrantingpricewas5.73yuanpershare.
OnDecember27,2017,thecompany’srestrictedstockcompletedthegrantregistrationformalitiesatChinaSecuritiesDepositoryandClearingCorporationShenzhenBranch.
3.Progressofrestrictedstock
(1)Regardingtherepurchaseandcancellationofsomerestrictedstocks,i.e.therepurchaseandcancellation
ofrestrictedstocksinPhaseIIandheldby3originalincentiveobjects
OnJune4,2019,theCompanyconvenedthe19thmeetingofthe7thboardofdirectorsandthe13thmeetingofthe7thboardofsupervisorstoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShare,agreeingtorepurchaseandcancelthe1,877,720restrictedsharesheldbytheCompanyfor116incentiveobjectsatarepurchasepriceof5.92yuan/share,whichdidnotmeettheconditionsforliftingtherestrictiononsaleinphaseI.Thebuybackpriceof5.73yuanpersharewasusedtocancel58,000restrictedsharesheldby3originalincentivesubjectswholeftthecompanyforpersonalreasons,andatotalof1,935,720restrictedshareswererepurchasedandcanceled.
OnJune26,2019,theCompanyheldits2018annualshareholders'meetingtoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShares,agreeingtorepurchaseandcancelthe1,877,720restrictedsharesheldby116incentiveobjectsatarepurchasepriceof5.92yuanpershareinphaseIand58,000restrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare,andatotalof1,935,720restrictedshareswererepurchasedandcanceled.
OnSeptember12,2019,theabove-mentionedrestrictedstockcompaniescompletedtherepurchaseandcancellationproceduresinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.
OnSeptember12,2019,theabove-mentionedrestrictedstockcompaniescompletedtherepurchaseandcancellationproceduresinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.
(2)Regardingtherepurchaseandcancellationofsomerestrictedstocks,i.e.therepurchaseandcancellation
ofrestrictedstocksheldby3originalincentiveobjects
OnDecember30,2019,theCompanyheldthe25thmeetingofthe7thboardofdirectorsandthe17thmeetingofthe7thboardofsupervisorstoconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedShares,agreeingthatthecompanywillrepurchaseandcancel69,900restrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare.
OnJanuary16,2020,theCompanyconvenedthefirstextraordinaryshareholders'meetingin2020toconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedSharesandagreedtorepurchaseandcancel69,900sharesofrestrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof5.73yuanpershare.
OnNovember12,2020,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.
(3)Regardingtherepurchaseandcancellationofsomerestrictedstocksandthesecondphaseoftherepurchaseandcancellationandtherestrictedstocksheldby3originalincentiveobjects
OnMarch12,2020,thecompanyheldthe27thmeetingoftheseventhboardofdirectorsandthe19thmeetingoftheseventhboardofsupervisors.Atotalof1,313,340restrictedstocksheldbytheincentiveobjectsthatdidnotmeettheconditionsforliftingtherestrictiononthesecondphasewererepurchasedandcancelled.Therepurchasepricewascalculatedasthegrantpriceof5.73yuan/shareplustheinterestonbankdepositsduringthesameperiod;thecompanyagreedtothe3Incentiveswhohaveresignedduetopersonalreasons,atotalof120,000restrictedstocksthathavebeengrantedbuthavenotbeenlifted,willberepurchasedandcancelledatarepurchasepriceof5.73yuanpershare;insummary,atotalof1,433,340restrictedstockshavebeenrepurchasedPurchasecancellation.
OnApril3,2020,thecompanyconvenedthesecondextraordinarygeneralmeetingofshareholdersin2020toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",andagreedthatthecompany'sholdingof110incentiveobjectsforthesecondphasedidnotreachtheliftinglimitAtotalof1,313,340restrictedstockssubjecttosalesconditionswillberepurchasedandcancelledatarepurchasepriceof
6.01yuan/share;thecompanyagreestorepurchaseatotalof120,000restrictedstocksthathavebeengrantedbutnotyetliftedby3resignationincentiveobjects.Cancellation,therepurchasepriceis5.73yuan/share.Itisagreedthatthecompanywillrepurchaseandcancelallthe120,000restrictedstocksthathavebeengrantedbutnotyetliftedfromthesalesrestrictionsforthe3resignationincentiveobjects,atarepurchasepriceof5.73yuanpershare.
OnNovember12,2020,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.
(4)Regardingtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationofrestrictedstocksheldby6originalincentiveobjects
OnJune8,2020,thecompanyheldthe30thmeetingofthe7thBoardofDirectorsandthe21stmeetingofthe7thBoardofSupervisors.Theboardofdirectorsdeliberatedandapprovedthe"ProposalonRepurchaseandCancellationofSomeRestrictedStocks",andplanstorepurchaseandcancelthe57,150restrictedsharesheldbythe5originalincentiveobjectswhoresignedduetopersonalreasons,atarepurchasepriceofRMB5.73pershare;Itisproposedtorepurchaseandcancel5,760restrictedstocksheldbyaformerincentiveobjectwhoresignedduetoretirementreasons,atarepurchasepriceof6.14yuanpershare.
OnJune29,2020,thecompanyheldthe2019AnnualGeneralMeetingofShareholderstoconsiderandpassthe"ProposalonRepurchaseandCancellationofSomeRestrictedStocks",agreeingtothecompany'srestrictiononthetotalof57,150sharesheldbythefiveoriginalincentiveobjectswhoresignedduetopersonalreasons.Repurchaseandcancellationofsexualsharesatarepurchasepriceof5.73yuan/share;agreetothecompany’srepurchaseandcancellationof5,760restrictedstocksheldbyaretiredoriginalincentiveobject,atarepurchasepriceof6.14yuan/share,totalrepurchaseandcancellation62,910restrictedshares.
OnNovember12,2020,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.
(5)Mattersconcerningtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationofrestrictedstocksheldby2originalincentiveobjects
OnJanuary15,2021,thecompanyheldthe35thmeetingofthe7thBoardofDirectorsandthe25thmeetingofthe7thBoardofSupervisors.Theboardofdirectorsdeliberatedandapprovedthe"ProposalonRepurchaseandCancellationofSomeRestrictedStocks",whichintendstorepurchaseandcancel7,950restrictedstocksheldbyanoriginalincentiveobjectwhoresignedduetopersonalreasons,atarepurchasepriceofRMB5.73pershare;Itisproposedtorepurchaseandcancelthe6,000restrictedsharesheldbyaretiredincentiveobjectatapriceof6.23yuanpershare.
OnFebruary2,2021,thecompanyheldthefirstextraordinarygeneralmeetingofshareholdersin2021toconsiderandpassthe"ProposalonRepurchaseandCancellationofCertainRestrictedStocks",agreeingtothecompany'stotalholdingsof1originalincentiveobjectwhoresignedduetopersonalreasons7,950restrictedstockswererepurchasedandcancelledatarepurchasepriceof5.73yuan/share;agreedthatthecompanywouldrepurchaseandcancel6,000restrictedstocksheldbyaretiredincentiveobjectatarepurchasepriceof6.14yuan/share,intotal13,950restrictedstockswererepurchasedandcancelled.
Asofthedisclosuredateofthisreport,thecompanyhasnotcompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksintheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.
(6)Regardingtherepurchaseandcancellationofsomerestrictedstocksandtherepurchaseandcancellationofthethirdphaseofrestrictedstocks
OnMarch10,2021,thecompanyheldthesecondmeetingoftheeighthboardofdirectorsandthesecondmeetingoftheeighthboardofsupervisors.The"ProposalonRepurchaseandCancellationofCertainRestrictedStocks"wasreviewedandpassed,andthecompanyagreedtoprovideincentivesto102Atotalof1,236,480restrictedstocksheldinthethirdperiodthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.TherepurchasepricewascalculatedasthegrantpriceofRMB5.73pershareplustheinterestonbankdepositsduringthesameperiod.
Thismatterstillneedstobesubmittedtothecompany's2020annualgeneralmeetingofshareholdersfor
reviewandapproval,anditneedstobeapprovedbymorethan2/3ofthevotingrightsheldbyshareholdersattendingthemeeting.XVI.Materialrelatedtransactions
1.Relatedtransactionsinconnectionwithdailyoperation
√Applicable□Notapplicable
| Relatedparties | Relationship | Typeoftrade | Subjectsoftherelatedtransactions | Principleofpricingtherelatedtransactions | Priceoftrade | AmountoftradeRMB10,000) | Ratioinsimilartrades | Tradinglimitapproved（RMB’0000） | Whetherovertheapprovedlimitedornot(Y/N) | Wayofpayment | Marketpriceofsimilartradeavailable | Dateofdisclosure | Indexofinformationdisclosure |
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JingjiangGroup'sshareholdingcompany | Purchaseofproductsfromrelatedparties | Purchaseofopticalfilmproductsandrelevantmaterials | MarketPrinciple | Agreementprice | 20,428.2 | 12.14% | 26,744 | No | Transfer | 20428.2 | ||
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JingjiangGroup'sshareholdingcompany | Saleofgoodstorelatedparties | Purchaseofopticalfilmproductsandrelevantmaterials | MarketPrinciple | Agreementprice | 11,054.52 | 5.24% | 14,937 | No | Transfer | 11054.52 | ||
| Total | -- | -- | 31,482.72 | -- | 41,681 | -- | -- | -- | -- | -- | |||
| Detailsofanysalesreturnofalargeamount | Notapplicable | ||||||||||||
| Givetheactualsituationinthereportperiodwhereaforecasthadbeenmadeforthetotalamountsofroutinerelated-partytransactionsbytypetooccurinthecurrentperiod(ifany) | Normalperformance |
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | Notapplicable |
2.Related-partytransactionsarisingfromassetacquisitionorsold
□Applicable√NotapplicableDuringthereportingperiod,therewerenorelatedtransactionsinvolvingtheacquisitionorsaleofassetsorequity.
3.Related-partytransitionswithjointinvestments
□Applicable√NotapplicableNomainrelatedtransactionsofjointinvestmentoutsidefortheCompanyinreportingperiod.
4.Creditsandliabilitieswithrelatedparties
√Applicable□NotapplicableWasthereanynon-operatingcreditorliabilitywithanyrelatedparty?
√Yes□NoDuefromrelatedparties
| Relatedparties | Relationship | Causesofformation | Doesthereexistnon-operationcapitaloccupancy? | Openingbalance(RMB10,000) | Newlyincreasedamountinthereportingperiod（RMB10,000) | Amountrecoveredinthereportingperiod(RMB10,000) | Interestrate | Interestinthereportingperiod(RMB10,000) | Endingbalance(RMB10,000) |
| ShenzhenDailishiUnderwearCo.,Ltd. | Sharingcompany | Investmentdividend | No | 40.48 | 110 | 40.48 | 110 |
| AnhuiHuapengTextileCo.,Ltd. | Jointventure | Investmentdividend | No | 180 | 180 | |||
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JingjiangGroup'sshareholdingcompany | Saleproducts | No | 5,389.38 | 12,491.61 | 15,793.07 | 2,087.92 | |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | TheChairmanoftheCompanywasViceChairmanofthecompany | Saleproducts | Yes | 73.3 | 167.92 | 183.05 | 58.17 | |
| Influenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition | Duringthereportingperiod,thecreditor'srightsofrelatedpartieswereformedbynormalproduction,operationandinvestmentactivities.Therewasnofinancialriskcausedbytheoccupationoffundsbyrelatedparties,norwasthereanydamagetothecompany'sinterestscausedbyunfairpricesofrelatedtransactions. | |||||||
Duetorelatedparties
| Relatedparties | Relationship | Causesofformation | Openingbalance(RMB10,000) | Amountnewlyincreasedinthereportingperiod(RMB10,000) | Amountrepaidinthereportingperiod(RMB10,000) | Interestrate | Interestinthereportingperiod(RMB10,000) | Endingbalance(RMB10,000) |
| KunshanZhiqimeiMaterialsTechnologyCo.,Ltd. | JingjiangGroup'sshareholdingcompany | Purchase | 5,624.5 | 23,024.21 | 25,069.95 | 3,578.76 |
| ShenzhenXinfangKnittingCo.,Ltd. | Sharingcompany | Currentamount | 24.48 | 24.48 | |||
| ShenzhenChanglianfaPrinting&dyeingCo.,Ltd. | Sharingcompany | Currentamount | 158.09 | 158.09 | |||
| YehuiInternationalCo.,Ltd. | Sharingcompany | Currentamount | 121.67 | 5.04 | 12.4 | 114.31 | |
| SAPO（HK）Co.,Ltd. | Sharingcompany | Currentamount | 31.5 | 31.5 | |||
| ShenzhenGuanhuaPringing&DyeingCo.,Ltd. | Sharingcompany | Currentamount | 381.11 | 381.12 | |||
| ShenzhenGuanhuaPringing&DyeingCo.,Ltd. | Sharingcompany | Currentamount | 381.11 | ||||
| Influenceoftherelatedrightsofcreditandliabilitiesuponthecompany’soperationresultsandfinancialposition | Duringthereportingperiod,thedebtsofrelatedpartywascausedbynormalproductionandoperationactivities,andtherewasnoactdamagingtheinterestsoftheCompanyanditsshareholders. | ||||||
5.Othersignificantrelated-partytransactions
□Applicable√NotapplicableNil
XVII.Particularsaboutsignificantcontractsandtheirfulfillment
1.Particularsabouttrusteeship,contractandlease
(1)Trusteeship
□Applicable√NotapplicableNotrusteeship,contractorleasingfortheCompanyinreportingperiod.
(2)Contract
□Applicable√NotapplicableNoanycontractfortheCompanyinthereportingperiod.
(3)Lease
□Applicable√NotapplicableNoanyleasefortheCompanyinthereportingperiod..
2.Guarantees
√Applicable□Notapplicable
（1）Guaranteesituation
单位：万元
| Thecompanyanditssubsidiaries’externalguarantees(excludingguaranteestosubsidiaries) | ||||||||
| Nameofguaranteeobject | Disclosuredateoftheannouncementoftheguaranteeamount | guaranteeamount | Actualdate | Actualguaranteeamount | Typeofguarantee | Guaranteeperiod | Hasitbeenfulfilled | itisarelatedpartyguarantee |
| Thecompany'sguaranteestosubsidiaries | ||||||||
| Nameofguaranteeobject | Disclosuredateoftheannouncementoftheguarantee | guaranteeamount | Actualdate | Actualguaranteeamount | Typeofguarantee | Guaranteeperiod | Hasitbeenfulfilled | itisarelatedpartyguarantee |
| amount | ||||||||
| SAPOCo.,Ltd. | March18,2020 | 48,000 | 27,412.8 | Jointliabilityguarantee | 2yearsfromtheeffectivedateoftheguaranteeagreementtotheexpirydateoftheactualloanperformanceperiod | No | No | |
| Thetotalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod（B1） | 48,000 | Totalactualamountofguaranteestosubsidiariesduringthereportingperiod（B2） | 27,412.8 | |||||
| Thetotalamountofguaranteestosubsidiariesapprovedattheendofthereportingperiod（B3） | 48,000 | Thetotalbalanceofactualguaranteestosubsidiariesattheendofthereportingperiod（B4） | 27,412.8 | |||||
| subsidiaries'sguaranteestoThecompany | ||||||||
| Nameofguaranteeobject | Disclosuredateoftheannouncementoftheguaranteeamount | guaranteeamount | Actualdate | Actualguaranteeamount | Typeofguarantee | Guaranteeperiod | Hasitbeenfulfilled | itisarelatedpartyguarantee |
| Totalcompanyguarantee(thetotalofthefirstthreeitems) | ||||||||
| Totalapprovedguaranteeamountduringthereportingperiod（A1+B1+C1） | 48,000 | Thetotalamountofguaranteesactuallyoccurredduringthereportingperiod（A2+B2+C2） | 27,412.8 | |||||
| Thetotalamountofapprovedguaranteesattheendofthereportingperiod（A3+B3+C3） | 48,000 | Totalactualguaranteebalanceattheendofthereportingperiod（A4+B4+C4） | 27,412.8 |
| Theactualtotalguarantee（即A4+B4+C4）asapercentageofthecompany’snetassets | 9.91% | ||
| Amongthem： | |||
| Thebalanceofguaranteesprovidedforshareholders,actualcontrollersandtheirrelatedparties(D) | 0 | ||
| Thebalanceofdebtguaranteeprovideddirectlyorindirectlyfortheguaranteedobjectwhoseasset-liabilityratioexceeds70%(E) | 0 | ||
| Theamountofthetotalguaranteeexceeding50%ofthenetassets(F) | 0 | ||
| Thetotalamountoftheabovethreeguarantees(D+E+F) | 0 | ||
Descriptionofthespecificcircumstancesoftheuseofcompositeguarantees
（2）Violationofexternalguarantees
□Applicable√NotapplicableDuringthereportingperiod,thecompanyhadnoviolationsofexternalguarantees.
3.SituationofEntrustingOthersforManagingSpotAsset
(1)SituationofEntrustedFinance
√Applicable□NotapplicableOverviewofentrustedwealth-managementduringthereportingperiod
InRMB10,000
| Specifictype | Sourceoffundsforentrustedfinancialmanagement | TheOccurredAmountofEntrustedWealth-management | Unduebalance | Un-recoveredofoverdueamount |
| Bankfinancialproducts | Selffund | 77,900 | 30,000 | 0 |
| Bankfinancialproducts | Selffund | 66,000 | 57,000 | 0 |
| Total | 478,000 | 143,900 | 87,000 | |
Thedetailedinformationofentrustedwealth-managementwithsignificantamountorlowsafety,poorliquidityorhighriskwithnopromiseofprincipal
√Applicable□Notapplicable
InRMB10,000
| NameofTrusteeOrganization(orTrusteeName) | TypeofTrusteeOrganization(orTrustee) | ProductType | Amount | CapitalSource | StartDate | ExpiryDate | FundsAllocation | MethodofRewardDetermination | ReferenceAnnualizedRateofReturn | ExpectedIncome(ifany) | Actualprofitandlossduringthereportingperiod | Theactualrecoveryofprofitandlossduringthereportingperiod | Amountofprovisionforimpairment(ifany) | Whetherpassedthestatutoryprocedure | Whetherthereisanyentrustedfinancialplaninthefuture | Summaryofeventsandrelatedsearchindex(ifany) |
| ChinaMerchantsBankCo.,Ltd.ShenzhenShenfangBuildingBranch | Bank | StructureDeposit | 28,000 | SelfFund | February05,2020 | August03,2020 | Bankfinancialproducts | Duepaymentatatime | 3.85% | 539 | 539.54 | Redemptionatmaturity | Yes | Notapplicable |
| ChinaMerchantsBankCo.,Ltd.ShenzhenShenfangBuildingBranch | Bank | StructureDeposit | 12,000 | SelfFund | Mar12,2020 | September14,2020 | Bankfinancialproducts | Duepaymentatatime | 3.85% | 233.57 | 233.57 | Redemptionatmaturity | Yes | Notapplicable | ||
| ChinaSouthernFundManagementCo.,Ltd. | fundcompany | MonetaryFund | 12,000 | SelfFund | September08,2020 | March10,2021 | Publicfundproducts | RedemptiononTday,arrivalonT+1day | 2.95% | 38.4 | 37.72 | Notexpired | Yes | Notapplicable | ||
| ChinaSouthernFundManagementCo.,Ltd. | fundcompany | MonetaryFund | 22,000 | SelfFund | September15,2020 | March10,2021 | Publicfundproducts | RedemptiononTday,arrivalonT+1day | 2.95% | Notexpired | Yes | Notapplicable | ||||
| Total | 82,500 | -- | -- | -- | -- | -- | -- | 772.57 | 773.11 | -- | -- | -- | -- | |||
Entrustedfinancingappearstobeunabletorecovertheprincipalortheremaybeothercircumstancesthatmayresultinimpairment
□Applicable√Notapplicable
(2)SituationofEntrustedLoans
□Applicable√NotapplicableNoanyEntrustedloansfortheCompanyinthereportingperiod..
4.Othersignificantcontract
√Applicable□Notapplicable
| CompanyNameofthePartyMakingthecontract | CompanyNameoftheOtherPartyoftheContract | ContractObject | ContractSigningDate | BookValueoftheAssetsInvolvedbytheContract(RMB10,000)(IfAny) | AssessedValueoftheAssetsInvolvedbytheContract(RMB10,000) | AppraisalAgencyName(IfAny) | BaseDateofAssessment(ifany) | PricingPrinciple | TransactionPrice(RMB10,000) | WhetherARelatedTraction | ConnectionRelation | ExecutionConditionAsOfTheEndOfTheReportingPeriod | DateofDisclosure | DisclosureIndex |
| SAPOPhotoelectric | HangzhouJinjiangGroupCo.,Ltd.,KunshanZhiqimeiMaterialTechnologyCo.,Ltd.,JapanNittoDenkoCorporation | NittoDenkoprovidespolarizermanufacturingtechnologyandrelatedcorporation. | November6,2017 | No |
| 86,900 | No | Withnoassociationrelationshipwiththecompany | Innormalperformance | November7,2017 | Http://www.cninfo.com.cn:(AnnouncementNo.:2017-53)onNovember7,2017 |
XVIII.Socialresponsibilities
1.Performanceofpovertyrelievingresponsibilities
(1)Theprotectionofshareholder’srightsandinterestsDuringthereportingperiod,thecompanyoperatedwithinaccordancewithlawsandstrictlyconformedtotherequirementsoflawsandregulationssuchasTheCompanyLaw,TheSecuritiesLawandCorporateGovernanceGuidelinesforListedCompanies,andthecompanycontinuouslyperfectedthegovernancestructureandfurtherstandardizedtheoperationofthecompany.Adheredtothecoresystemconstitutedbyshareholders'meeting,boardofdirectors,boardofsupervisorsandtheindependentdirectorsystem,furtherimprovedthecorporategovernancestructureandthemanagementsystem,constantlyimprovedthecompany'sinternalcontrolsystemintheprocessofbusinessmanagement,adoptedeffectivemeasurestopreventoperationalrisksand
soundlysafeguardedandprotectedtherightsandinterestsofshareholderstolayasolidfoundationforthecompany'shealthy,sustainabledevelopment.Independentdirectorshavepaidcloseattentiontothecompany'soperation,putforwardmanyvaluableprofessionalsuggestionsforthecompany'sdailyoperationandkeyconcerns,andplayedanimportantroleinimprovingthecompany'ssupervisionmechanismandprotectingthelegitimaterightsandinterestsofthecompanyandallshareholders.
Thecompanystrictlyenforcesinformationdisclosureobligationsinaccordancewiththelaw,andtruthfully,accurately,completely,timely,andfairlydisclosesinformationthathasasignificantimpactoninvestmentdecisions,thedisclosurecontentisconciseandeasytounderstand,andfullyrevealsrisks,facilitatesaccessforallshareholders.Andaccordingtoregulatoryrequirements,thecompanyfurthersortoutandimproverelevantsystemsandimprovethequalityofinformationdisclosure.Duringthereportingperiod,thecompanyfurtherimprovedinformationdisclosureandinformationtransparency,strictlyfulfilledtheobligationofinformationdisclosureinaccordancewithregulatoryrequirements,communicatedandcommunicatedwithinvestorsthroughmultiplechannels,answeredquestionsraisedbyinvestorsinatimelymanner,improvedinformationtransparency,andcooperatedwithregulatoryauthoritiesandatthesametime,cooperatedwiththeregulatoryauthoritiestopurifythemarketspace,safeguardtheinterestsofinvestors,especiallysmallandmedium-sizedinvestors,andachievepositiveinteractionandharmonious(2)Theprotectionoflegalrightofstaff
(2)Theprotectionoflegalrightofstaff
Subjecttotheenterprisedevelopmentstrategy,theCompanyworkedoutacompliance,legitimate,scientificandreasonablehumanresourcesmanagementsystem.TheCompanyestablishedalaborrelationwitheachemployeebyconcludinganemploymentcontractandmadenecessarymanagementonemployeespursuanttoLaborLawandrelevantmanagementregulationsintheCompany.TheCompanyformulatedassessmentmanagementsystemsseparatelygearedtoseniorexecutives,middlemanagementandregularemployeesandestablishedasystematicandstandardizedperformanceassessmentandevaluationsystemforacomprehensive,objective,fairandaccurateassessmentonalltheemployeesregardingperformanceofdutiesandcompletionoftasks,resultsofwhichwereseenasthebasisfordeterminationoftheemployeecompensation,rewardorpunishmentandappointment.
In2020,thecompanystrivestocreateagoodcorporatecultureatmosphere,strengthenemployeepsychologicalcare,Duringthenewcrownpneumoniaepidemic,throughonlinecommunicationandcommunicationbetweengroupexecutivesandemployeesreturningtoShenzhenfromkeyepidemicareas,wecareaboutandcareforemployeesreturningtoShenzhenfromkeyepidemicareas,listentothetruevoicesofemployees,andenhanceemployees'senseofownershipandbelonging;atthesametime,Inordertounderstandtheideologicalstatusofgrassrootsemployeesbythegroupleaders,andtobettercareforandhelpemployeesgrowintotalents,SAPOPhotoelectricorganizedasymposiumonthethemeof"growth,struggle,dedication,anddedication"organizedbyemployeerepresentativesofrecentgraduateswhohavejoinedthecompanyinrecentyears.
Atthesametime,thecompanyhasnewlyrevisedthe"ShenzhenTextileGroupCadreSelectionandAppointmentManagementSystem","ShenzhenTextileGroupTrainingManagementSystem","ShenzhenTextileGroup'sNewEmployees'SalaryAdjustmentManagementMeasuresforOneYear","ShenzhenTextileGroup'sInterimMeasuresforAnnualAdvancedSelection",etc.Ninehumanresourcesmanagementsystemshaveoptimizedandimprovedthecompany’shumanresourcesrelatedworksuchaspersonneltraining,performance
compensationmanagement,andtrainingmanagement.Activelyguideandassistsubordinatecompaniestopromotevarioushumanresourcemanagementstandards,andaccordingtotheactualconditionsofeachcompany,guideeachcompanytocompletethesalaryreform,andmakereasonableadjustmentstothesalarylevelofemployees.Strengthenthescientificandstandardizationofhumanresourcemanagement,avoidlaborrisks,improvethelevelofhumanresourcemanagement,andfurthermobilizetheenthusiasmofemployees
(3)TheprotectionofenvironmentBuildingamodern"greenenterprise"witheffortisapermanentresponsibilitywhichtheCompanykeepstaking.Forthatend,theCompanyholdsfirmtobuildingagreenandrecycledindustrychainthroughouttheentireprocesstorealizegreenandrecyclingeconomyinrealmeansandimprovesqualityofenvironmentsurroundingtheCompanytofacilitateitsproduction.Inthereportperiod,theCompany'sout-of-boundarynoise,industrialwastewaterandgasemissionpassedthesurveillanceoftheenvironmentalprotectionadministrationandmetstandardrequirementsinrelevantlawsandregulations.Inthereportperiod,througharotaryRTOtreatmentprocess,morethan99%ofVOCswereremovedfromtheCompany'sorganicwastegasandonthegroundofup-to-standardemission,theCompanyfurtherreducedemissionofpollutantstopracticallyfulfillthesocialresponsibilityasalistedcompanyandinflictednomajorenvironmentalprotectionaccident.Furthermore,theCompanyadvocatedforgreenofficewitheffortandcarriedoutenvironmentalprotectionpublicityandeducationactivitiesinavarietyofformstoenhancetheenergy-savingandemissionreductionawarenessamongemployeesandcoordinateproduction&operationandenvironmentalprotectioninproductiontofulfillitssocialresponsibilityliterally.
(4)TheprotectionofconsumerrightsandinterestsThecompanyalwaysstickstothecorevaluesof"honesty,responsibilityfirst".Astheresponsibilitytothecustomeristhesourceofenterprisevalue,thecompanycommittedtoprovidecustomerswithprofessional,personalized,fullrangeofproductsandservices.Sustainablecustomer-orientedserviceandimpeccableproductqualitymotiveourperformanceandsustainabledevelopmentandguaranteelong-termcustomers.Andourlong-termpartnershipisestablishedonthebasisofinitiativeattention,quickrespondingandsincerecaretocustomers.
InordertothoroughlyimplementthespiritofGeneralSecretaryXiJinping’simportantinstructionsonepidemicpreventionandcontrol,andfullyimplementthemajordecisionsofthePartyCentralCommitteeandtheStateCouncil,theShenzhenMunicipalPartyCommitteeandMunicipalGovernmentissuedonFebruary7theSeveralDifficultMeasures."Inordertojointlyrespondtotheepidemic,activelyperformsocialresponsibilities,acceleratetheimplementationofthemunicipalpartycommitteeandmunicipalgovernment’sdecisionanddeployment,andcomprehensivelyconsiderthenegativeimpactoftherecentepidemiconpropertytenants,thecompanyactivelyrespondedtothecalloftheShenzhenMunicipalPartyCommitteeandtheState-ownedAssetsSupervisionandAdministrationCommission,andformulatedthecompanyanditsaffiliates.Theimplementationplanforrentreductionandexemptionofself-ownedpropertiesoffundedenterprises,toovercomedifficultieswithcustomers,bravelyassumethesocialresponsibilitiesofstate-ownedenterprises,andhelpwinthebattleagainstepidemicpreventionandcontrol.
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
(1)Precisionpovertyalleviationprogram
Thecompanyhasnoprecisesocialresponsibilityforpovertyalleviationintheperiodandbasnofollow-upplaneither.
(2)Annualprecisionpovertyalleviation
(3)Accuracyofpovertyalleviation
| Index | Measurementunit | Quantity/Status |
| I.Generalsituation | —— | —— |
| II.BreakdownInput | —— | —— |
| 1.Povertyalleviationbyindustrialdevelopment | —— | —— |
| 2.Povertyalleviationbytransferemployment | —— | —— |
| 3.Povertyalleviationbyrelocation | —— | —— |
| 4.Educationalpovertyalleviation | —— | —— |
| 5.Healthpovertyalleviation | —— | —— |
| 6.Ecologicalprotectionpovertyalleviation | —— | —— |
| 7.Guaranteeofallthedetails | —— | —— |
| 8.Socialpovertyalleviation | —— | —— |
| 9.Otherprojects | —— | —— |
| III.Awards(Contentandlevel) | —— | —— |
(4)Subsequenttargetedpovertyalleviationprogram
3.InformationonenvironmentalprotectionTheListedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmentalprotectiondepartmentYes
| Companyorsubsidiaryname | Mainpollutantandspecificpollutantname | Emissionway | Emissionportnumber | Emissionportdistributioncondition | Emissionconcentration | Implementedpollutantemissionstandards | Totalemission | Verifiedtotalemission | Excessiveemissioncondition |
| SAPOPhotoelectric | Exhaustgas:non-methanetotalhydrocarbons | Altitudeemission | 2 | ThedischargeportislocatedontheeastsideoftheroofofBuildingNo.1 | <100mg/m3 | 120mg/m3 | 840kg/d | 1728kg/d | No |
| SAPOPhotoelectric | Wastewater：COD | Openchanneldischargeaftertreatment | 1 | Southeastsideofplantarea | <60mg/L | 70mg/L | 37.5804t/a | 43.8438t/a | No |
Preventionandcontrolofpollutionfacilitiesconstructionandoperation
ThewastegastreatmentfacilityadoptedtheRTOwastegasregenerativeincinerationprocessofSAPOPhotoelectric.whichcanfullymeettheemissionrequirementsofdischargegas.TheremovalrateoforganicwastegasVOCsreachedmorethan99%,Meanwhile,theequipmentadoptedtheimportedthermalstoragematerial,withtheheatstorageeffectreached90%,sothattheequipmentoperationhadlowenergyconsumption;afterRTOtreatment,theexhaustgasproducedbytheproductionprocesscanmeetthedischargestandard.ThewastewatertreatmentfacilityofSAPOPhotoelectrichasimprovedtheFentonsystemintheearlystage,andcurrentlyadoptsthewastewatertreatmentprocessofUASBanaerobic+aerobic+MBRmembrane+coagulationsedimentation.Theprocesshasstrongimpactresistance,stablesystemoperation,lowenergyconsumption,lowmaintenanceandoperationcost,highdegreeofautomation,andgoodwastewatertreatmenteffluenteffect.Thewastewaterproducedintheproductionprocesscanmeettheenvironmentalprotectionrequirementsofstandarddischargeafterbeingtreatedbywastewatertreatmentfacilities.
SituationofConstructionprojectenvironmentalimpactassessmentandotherenvironmentalprotectionadministrativelicenses
TheCompanycompliedwithrelevantenvironmentalprotectionregulationsatsuchthreestagesasprojectdesign,constructionandoperationandobtainedenvironmentalprotectionapprovalsneededateachcorrespondingstageincludingEIAreport,EIAapproval,environmentalprotectionacceptancedecisionandemissionpermitamongothers.EmergencyPlanforEmergencyEnvironmentalIncidents
Accordingtotheactualsituationofthecompany,thepreparationoftheemergencyplanforemergencyenvironmentalincidentswascompleted,andanemergencyenvironmentalemergencyplanfilingapplicationEnvironmentalSelf-MonitoringProgram
SurveillancedonesubjecttosurveillancerequirementsmadebythesurveillancestationandoperationneedsofallsystemsofSAPOPhotoelectric，thespecificmonitoringprogramsareasfollows:organicexhaustgasis8
timesperyear(2perquarter),wastewaterdischargeis4timesperyear(onceperquarter),boilerexhaustgasis2timesperyear(onceeverysixmonths),andcanteenfumeis2timesperyear(onceeverysixmonths),thenoiseattheplantboundaryis2timesperyear(onceeverysixmonths).OtherEnvironmentalInformationThatShouldBeDisclosedNilOtherEnvironmentalRelatedInformationNil
XIX.Othermaterialevents
√Applicable□Notapplicable
1.Progressofpolarizerindustrializationprojectforultra-largeTV(Line7)InordertomeetthefundingneedsfortheconstructionoftheLine7project,the28thmeetingoftheseventhboardofdirectorsofthecompanyreviewedandapprovedthe"ProposalonSubsidiariesApplyingforMortgageLoansfromBanks"and"ProposalonProvidingGuaranteesforSubsidiaries'Mortgage,TheSecondExtraordinaryGeneralMeetingofShareholdersin2020reviewedandpassedthe"ProposalonProvidingGuaranteesforSubsidiaryMortgageLoans",andagreedthatitssubsidiarySAPOPhotoelectricwillapplyfor80,000thousandyuanfromleadBanksuchasCommunicationsCo.,Ltd.ShenzhenBranchforsomeofitsself-ownedproperties.Thisfixedassetloandoesnotexceed8years.Thespecifictermsandtermaresubjecttotheactualsignedloancontract;itisagreedthatthecompanywillprovidejointliabilityguaranteefortheabove-mentionedloanata60%shareholdingratio,andexemptitfrompayingthecompanyThecompany’slegalrepresentativeoritsauthorizedrepresentativeshallbeauthorizedtohandletheabove-mentionedguaranteemattersonbehalfofthecompanyandsigntheguaranteecontractandanyotherdocumentsrelatedtothisguarantee;agreethatthecompanyandtheotherguarantorJinjiangGroupshallconductjointandseveralguaranteerelatedissuesAgreementstipulated.Fordetails,pleaserefertoAnnouncementNos.2020-18,2020-19and2020-22ofthecompanyonwww.cninfo.com.cn(http://www.cninfo.com.cn).Asofthedisclosuredateofthisreport,Line7projecthascompletedthemainplantroofcappingandextensionmachineequipmentmanufacturing.Affectedbythenovelcoronaviruspneumoniaepidemic,duetoshortagesoflabor,insufficientsupplyofengineeringmaterialsandequipment,andtransportationrestrictions,theLine7projectwillnotbefullyresumeduntilmid-March2020.Thecompanyfurtherstrengthenedthemonitoringandmanagementofbudget,progress,qualityandotheraspects,andrearrangedtheconstructiontimenodes.AsofDecember31,2020,thecivilengineeringoftheline7projecthasbasicallybeencompleted,andthecleanareaofthemainproductionworkshophascompletedpreliminaryacceptance;Intermsofprocessequipment,mainequipmentsuchasextensionmachines,coatingmachines,andanti-detectionmachineshavebeeninstalledandenteredthecommissioningstage.TheoverallcommissioningwillbecompletedinlateMarch2021andentertrialproduction.Duringthereportingperiod,thecompany,afterprudentialevaluation,investedanadditionalRMB147.2millionintheconstructionof1RTPproductionlineand2RTSproductionlinesintheNo.7lineproject.Thesourceoffundswasitsownfundsandbankloans.Themainreasonsforthisincreaseininvestmentaretomeettheneedsofdownstreampanelcustomersandenhancethedepthofcustomercooperation;thesecondistohelpimprovetheoverallproductionefficiencyofLine7project,simplifytheproductionprocess,andeffectively
reduceproductioncosts;third,tofurtherimproveEnterprisecompetitivenessprovidesguaranteeforthesuccessfuloperationofLine7project.Fortheabovedetails,pleaserefertothe"AnnouncementontheIncreaseofInvestmentandConstructionProgressintheIndustrializationProjectofPolarizersforSuperLargeTVs(Line7)"byJuchaoInformationNetwork(http://www.cninfo.com.cn)onApril30,2020.(No.2020-25).Asofthedisclosuredateofthisreport,thecompanyhasbuilt1RTPproductionline,andRTPequipmentproductionisinprogress.Itisexpectedtoachievemassproductioninthethirdquarterof2021;1RTSproductionlineisalreadyunderconstruction,anditisexpectedtobeachievedinthethirdquarterof2021.Massproduction.
AsofDecember31,2020,thecumulativeinvestmentcontractvalueoftheLine7projectwas1.628,631,700yuan,andtheactualpaymentwas1,468,765,700yuan(usingraisedfundsof409,951,100yuan,usingself-ownedfundsandgovernmentfundsof1,058,114,700yuan).
2.ProgressofRentingofGuanhuaBuilding
Inordertofurtherrevitalizethecompany’sstockassets,concentrateresourcesonthemainbusiness,andstimulatethevitalityofthecompany,the“RegardingtheTransferofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.The“Proposalof50.16%oftheCompany’sEquity”agreesthatthecompanywilltransferthe50.16%equityofGuanhuaCompanyheldbythecompanybypubliclistinginShenzhenUnitedPropertyRightsExchangeatapricenolessthanRMB340,468,300astheassessmentresultapprovedbythestate-ownedassetmanagementdepartment.However,duetomarketreasonsandchangesinrelevantcircumstances,afterthecompany’scomprehensiveconsideration,Guanhua’sequitywasnotlistedontheShenzhenUnitedAssetsandEquityExchange.Thecompanyoriginallyplannedtocombineitaccordingtomarketconditionsduringthevalidityperiodofthetargetequityevaluationreport(August30,2020).Thecompanyactuallychoosestheopportunitytolistonthemarket.Forthedetailsoftheabovespecificsituation,pleaserefertothecompany'sannouncementNo.2019-55,2019-63,and2019-71ontheJuchaoInformationNetwork(http://www.cninfo.com.cn).
Duetomarketreasonsandchangesinrelevantcircumstances,thecompanydidnotpubliclylistandtransfertheequityofthetargetcompanyontheShenzhenUnitedAssetsandEquityExchange.Asofthedisclosuredateofthisreport,theevaluationreportofGuanhuaCompanyhaspasseditsvalidityperiod(validuntilAugust30,2020).Iftheequitytransfercontinuestobeimplemented,anewassetevaluationwillberequired.Inviewofthemarketreasonsaffectedbythenewcrownpneumoniaepidemicthisyear,combinedwiththecompany'sactualoperatingconditions,thecompany,aftercarefulconsideration,intendstoterminatethetransferof50.16%ofGuanhua'sequity.Thecompanyheldthe33rdmeetingoftheseventhboardofdirectorsonOctober29,2020,andheldthefirstextraordinarygeneralmeetingof2021onFebruary2,2021.Itreviewedandapprovedthe``RegardingtheterminationofthetransferofShenzhenGuanhuaPrintingandDyeingCo.,Ltd."TheProposalon50.16%oftheCompany’sEquity"agreesthatthecompanywillterminatethepubliclistingandtransferof50.16%oftheequityofShenzhenGuanhuaPrintingandDyeingCo.,Ltd.inaccordancewithmarketchangesandactualoperatingconditions.Fortheabovecontent,pleaserefertohttp://www.cninfo.com.cn)"AnnouncementonTerminatingtheTransferof50.16%EquityofShenzhenGuanhuaPrintingandDyeingCo.,Ltd."(No.2020-49).
3.ThedisposalofassetsofthejointventurecompanyXieliAutomobileCo.,Ltd.
ShenzhenXieliAutomobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isaSino-foreignjointventureinvestedandestablishedbythecompanyandHongKongXieliMaintenanceCompanyin1981,witharegisteredcapitalof3.12millionyuan,andthecompanyholds50%oftheequity.Thecompany'soperatingperiodendedin2008,anditsbusinesslicensewasrevokedin2014.Thecompany'smainassetisrealestate.Uptonow,thecompanyhasreceivedRMB25.76million.Thismatterhasnoimpactonthecompany’sprofitandloss.Thecompanystillneedstonegotiatewithothershareholdersregardingthepropertyunderthe
nameofShenzhenXieli,andpromotetheresolutionofrelatedissues.Thecompanywillpromptlyfollowthefollow-upprogress.Fulfillinformationdisclosureobligations.XX.Materialeventsofsubsidiaries
√Applicable□Notapplicable
1.Mattersconcerningthecompany'sarbitrationandcompensationforitssubsidiaries'performancecommitmentsin2019OnMarch9,2020,thecompanyreceivedthe2020ShenGuozhongAcceptanceNo.452-2"ArbitrationNotice"fromtheShenzhenInternationalArbitrationCourtandthe"ArbitrationApplication"submittedbyHangzhouJinjiangGroupCo.,Ltd.astheapplicant.Therespondentofthearbitrationmatter,HangzhouJinjiangGroupCo.,Ltd.filedanarbitrationrequest:1.Theawardmadethefollowingchangestothe"CooperationAgreement":(1)TheoriginalArticle3.1ofthe"CooperationAgreement"wasdeleted,andtherelevantunfulfilledrightsandobligationswerenolongerfulfilled.(2)DeletetheoriginalArticle6.4oftheCooperationAgreement,andtherelevantunfulfilledrightsandobligationswillnolongerbefulfilled;2.Therulingthattherespondentshallbearthearbitrationfeesinthiscaseandtheactualexpensesofthearbitrationtribunal.Theapplicantreservestherighttofurthermodifythearbitrationrequest.Fordetails,pleaserefertothe"AnnouncementontheCompany'sInvolvementinArbitration"(No.2020-07)ofJuchaoInformationNetwork(http://www.cninfo.com.cn)..
OnMarch26,2020,thecompanyreceivedthe2020ShenzhenInternationalArbitrationCourtNo.452-3"NoticeonExtendingtheTimeLimitforAppointmentofArbitrators"fromtheShenzhenCourtofInternationalArbitration.Duetothecomplexdisputesinthiscaseandthespecialepidemicbackground,theclaimantneededextratimetonegotiateandcommunicatetheproceduralmattersofthiscasewiththerespondent,soitappliedtotheShenzhenCourtofInternationalArbitrationtoextendthetimelimitforappointingarbitratorsinthiscase.TheShenzhenCourtofInternationalArbitrationconsidersthattheclaimant’srequestisreasonable,andbothpartiesarerequestedtonotifytheShenzhenCourtofInternationalArbitrationinwritingoftheresultoftheappointmentofthearbitratorbeforeMarch30,2020.Therefore,thecompanywillpostponetheappointmentofarbitratorswithin15daysafterreceivingthenoticeofarbitrationonMarch9,2020untiltheappointmentofarbitratorsbeforeMarch30,2020,andnotifytheShenzhenInternationalArbitrationCourtoftheresultinwriting.Fordetails,pleaserefertothe"AnnouncementontheCompany'sProgressInvolvingArbitration"(No.2020-21)onthecompany'sJuchaoInformationNetwork(http://www.cninfo.com.cn).
OnApril17,2020,thecompanyreceivedthe2020ShenzhenInternationalArbitrationCourtNo.452-4"NoticeofArbitrationTribunalComposition"fromShenzhenInternationalArbitrationCourt.BothpartiestothearbitrationhaveselectedarbitrationinaccordancewiththearbitrationproceduresbeforeMarch30,2020.TheShenzhenCourtofInternationalArbitrationwasnotifiedinwritingoftheresultsofthearbitrators,eachappointinganarbitratorandjointlyappointingachiefarbitrator.OnApril16,2020,thearbitrationtribunaltohearthecasewasformed.
OnDecember1,2020,thearbitrationcasewasheardintheSeventhArbitrationTribunaloftheCourtofArbitrationlocatedattheShenzhenStockExchange.Asofthedisclosuredateofthisannouncement,thearbitrationhasnotyetbeenawarded.Inviewofthecompany'sinvolvementintheaforementionedarbitrationmattersandtheuncertaintyofthearbitrationresults,JinjiangGroup'sunfulfilledcommitmenttothecompany'ssubsidiarySAPOSAPOPhotoelectricfor2019performanceisuncertain.Thecompanywillcontinuetopay
attentiontothefollow-upprogressofthisarbitrationandtimelyperformitsinformationdisclosureobligations.
2.ProgressinsubsidiariesparticipatingintheestablishmentofindustrialfundsOnNovember16,2017,thecompany'scontrollingsubsidiarySAPOPhotoelectricsignedtheChangxingJunyingEquityInvestmentPartnership(LimitedPartnership)AgreementwiththefundmanagerHuizhiInvestmentManagementCo.,Ltd,generalpartnerJinxinInvestmentCo.,Ltdandotherlimitedpartners,andco-sponsoredtheestablishmentofanindustrialfund,focusingontheopticalfilmindustrychainrelatedprojectsrelatedtothecompany'smainbusiness,withafundsizeof50millionyuan.SAPOPhotoelectric,asoneofthelimitedpartnersoftheindustrialfund,subscribedforacapitalcontributionof28.5millionyuan.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2017--55).OnFebruary10,2018,ChangxingJunyingEquityInvestmentPartnershipcompletedtheindustrialandcommercialregistrationandcompletedtheprivateequityinvestmentfundregistrationonFebruary8,2018.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.(AnnouncementNo.2018--05).
AsofDecember31,2019,ChangxingJunyinghadaccumulated3investmentprojectswithatotalinvestmentof42millionyuan.Theprofitduringthereportingperiodwas2,150,900yuan.
| No | Name | Investment | Fundcontribution（RMB10,000） |
| 1 | ShenzhenKaichuangShijiaTechnologyCo.,Ltd. | OpticalFilm | 1,400 |
| 2 | ShenzhenShenfuyuElectronicTechnologyCo.,Ltd. | OpticalFilm | 1,300 |
| 3 | ShenzhenHengbaoshunTechnologyDevelopmentCo.,Ltd. | OpticalFilm | 1,500 |
3.Provisionofguaranteesforsubsidiariestoapplyforbankmortgages
Inordertomeetthecapitalrequirementsfortheconstructionofthepolarizerindustrializationproject(line7)forsuper-largeTVs,the28thmeetingoftheseventhboardofdirectorsofthecompanydeliberatedandapprovedthe"ProposalonSubsidiariesApplyingforMortgageLoansfromBanks"and"AboutTheProposalonProvidingGuaranteesforSubsidiaries'MortgageLoans,theProposalonProvidingGuaranteesforSubsidiaries'MortgageLoansDeliberatedandPassedbytheSecondExtraordinaryGeneralMeetingofShareholdersin2020,the34thMeetingoftheSeventhBoardofDirectors,andthefirstinterimmeetingin2021Thegeneralmeetingofshareholdersreviewedandapprovedthe"ProposalonClarifyingthe"ProposalonProvidingGuaranteesforSubsidiaryMortgageLoans"andthescopeofguaranteesintheresolution",andagreedthatthesubsidiarySAPOPhotoelectricwillusesomeofitsself-ownedpropertiestotaketheBankofCommunicationsCo.,Ltd.ShenzhenBranchastheleadThebank’ssyndicatedapplicationforafixedassetloanofRMB80millionwithatermofnomorethan8yearsisbasedonthe"OversizedTVPolarizerIndustrializationProject(Line7)SyndicatedLoan"and"OversizedTV"signedbySAPOPhotoelectricandthelender."TheMortgageContractofSyndicatedLoanforPolarizerIndustrializationProject(Line7)"shallprevail;
Agreedtoprovideajointliabilityguaranteefor60%ofthetotaldebtsofthesubsidiarySAPOPhotoelectricundertheabove-mentionedprojectloantotheabove-mentionedsyndicate.Theprincipalamountofthesecuredcreditor'srightsisRMB480million,andthelegalrepresentativeofthecompanyoritsauthorizedrepresentativeisauthorizedtorepresentthecompanyHandletheaboveguaranteemattersandsigntheguaranteecontractandanyotherdocumentsrelatedtothisguarantee.Fordetails,pleaserefertothecompany'sannouncementsNo.2020-18,2020-19,2020-22,2020-52,and2021-11onwww.cninfo.com.cn.Asofthedateofthedisclosureofthisreport,thecompanyhassignedthe"GuaranteeContractforSyndicatedLoansfortheIndustrializationProjectofPolarizersforUltra-LargeTVs(Line7)"withBankofCommunicationsCo.,Ltd.ShenzhenBranch,theguaranteeagentofthesyndicate.Fordetails,pleaserefertothe"AnnouncementontheCompany'sProgressinProvidingGuaranteestoSubsidiaries"(No.2020-46)onOctober24,2020,http://www.cninfo.com.cn.Chapter6:ChangeofsharecapitalandshareholdingofPrincipal
Shareholders
I.Changesinsharecapital
1.Changesinsharecapital
InShares
| Beforethechange | Increase/decrease（+，-） | AftertheChange | |||||||
| Amount | Proportion | Shareallotment | Bonusshares | Capitalizationofcommonreservefund | Other | Subtotal | Quantity | Proportion | |
| 1.Shareswithconditionalsubscription | 2,893,830 | 0.57% | -1,567,425 | -1,567,425 | 1,326,405 | 0.25% | |||
| 1.State-ownedshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 2.State-ownedlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3.Otherdomesticshares | 2,893,830 | 0.57% | -1,567,425 | -1,567,425 | 1,326,405 | 0.25% | |||
| Incl：Domesticlegalpersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| DomesticNaturalPersonshares | 2,893,830 | 0.57% | -1,567,425 | -1,567,425 | 1,326,405 | 0.25% | |
| 4.Foreignshare | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| Incl：Foreignlegalpersonshare | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| ForeignNaturalPersonshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| II.Shareswithunconditionalsubscription | 506,444,599 | 99.43% | 1,275 | 1,275 | 506,445,874 | 99.75% | |
| 1.CommonsharesinRMB | 457,016,599 | 89.73% | 1,275 | 1,275 | 457,017,874 | 90.02% | |
| 2.Foreignsharesindomesticmarket | 49,428,000 | 9.70% | 0 | 0 | 49,428,000 | 9.74% | |
| 3.Foreignsharesinforeigncmarket | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| III.Totalofcapitalshares | 509,338,429 | 100.00% | -1,566,150 | -1,566,150 | 507,772,279 | 100.00% |
Reasonsforsharechanged
√Applicable□Notapplicable
Thecompany’sperformancein2020didnotmeettheconditionsforthereleaseofthesecondsalerestrictionperiodstipulatedinthe2017RestrictedStockIncentivePlan,accordingtothecompany’sRestrictedStockIncentivePlanin2017,ChapterVIIIoftherestrictedstockgrantconditionsAndtheconditionsforliftingthesalesrestriction,Iftheconditionsforliftingthesalesrestrictioninthecurrentperiodarenotmet,thecompanywillrepurchasetherestrictedstocksthatcanbereleasedforthecurrentyearandcanceltheminaccordancewiththeprovisionsofthisplan.Thesecondphaseheldbythecompanyfor116incentiveobjectsThe1,313,340restrictedstocksthatdidnotmeettheconditionsforliftingtherestrictionswererepurchasedandcancelled.Secondly,Thecompany’soriginalincentivetargets,including11peoplewhoresignedduetopersonalreasons,includingLiaoZhichao,XuKai,XuLiqun,ZhangYonggang,XiongSheng,YuanRubing,XieFengzhen,XuWeiwen,PuXueying,LiuShuhong,andQinWei.AccordingtotherelevantprovisionsoftheIncentivePlan(Draft),theabove-mentionedpersonnelnolongermeettheincentiveconditions,andthecompanyshallrepurchaseandcancelthe247,050restrictedstocksthathavebeengrantedbutnotyetlifted.Thirdly,thecompany’soriginalincentiveobject,YangJianjun,retires.Accordingtothecompany’s"2017RestrictedStockIncentivePlan",thispersonno
longermeetstheincentiveconditions,andthecompanyhasgranted5,760restrictedstocksthathavenotbeenlifted.Cancellationofrepurchase.Insummary,atotalof1,566,150restrictedstockswererepurchasedandcancelled.Fordetails,pleaserefertothe"AnnouncementonRepurchaseandCancellationofCertainRestrictedStocks"(No.2019-75,2020-17,2020-30)ofthecompanyonwww.cninfo.com.cn.OnNovember12,2020,thecompanycompletedtherepurchaseandcancellationproceduresoftheabove-mentionedrestrictedstocksattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.Fordetails,pleaserefertowww.cninfo.com(http://www.cninfo.com)..cn)"AnnouncementonCompletionofRepurchaseandCancellationofCertainRestrictedStocks"(No.2020-51)ofthecompany.Inaddition,thecompany'ssharesheldbyZhangXiaodong,thecompany'sformeremployeesupervisor,werepartiallyunlockedduringthereportingperiod,and1,275sharesofsharesnotsubjecttosalesrestrictionswereadded.ApprovalofChangeofShares
√Applicable□NotapplicableRegardingthetransferoftheabove-mentionedrestrictedstocks,GrantThorntonInternationalLtd(specialgeneralpartnership)conductedaninspectionontheabove-mentionedrepurchaseandcancellationofsomerestrictedstocksandissued07552020090097235311CapitalVerificationReport.ThecompanyhasissuedareportonNovember12,2020.TheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedcompletedtherepurchasecancellationprocedures.FordetailsJuchaoWebsite:（http://www.cninfo.com.cn.,Company"AnnouncementonCompletionofRepurchaseandCancellationofCertainRestrictedStocks",AnnouncementNo.2020-51).Ownershiptransferofsharechanges
√Applicable□NotapplicableRegardingthetransferoftheaboverestrictedstocks,ShineWingAccountingFirm(specialgeneralpartnership)verifiedsomerestrictedstockscancelledbytheaboverepurchaseandissuedthecapitalverificationreportXYZH/2019SZA20370.TheCompanycompletedtherepurchaseandcancellationproceduresinShenzhenbranchofChinaSecuritiesDepositoryandClearingCo.,LtdonSeptember12,2019.FordetailsJuchaoWebsite:
（http://www.cninfo.com.cn.(AnnouncementNo.2019--42).Progressonanysharerepurchase:
√Applicable□NotapplicableFordetails,pleaserefertoSectionV,"XV.ImplementationoftheCompany'sEquityIncentivePlan,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures(III)ProgressofRestrictedStock".Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
√Applicable□NotapplicableAftertheCompanyrepurchasedandcancelledsomerestrictedstocks,thetotalcapitaloftheCompanywas
changedfrom509,338,429sharesto507,772,279shares.TheimpactofthissharechangeontheCompany'sfinancialindicatorssuchasbasicearningspershareanddilutedearningspershare,netassetspershareattributabletothecompany'scommonshareholdersinthelatestyearandperiodisasfollows:
| Items | Year2019 | Year2020 | |
| Accordingtotheoriginalcapital | Accordingtothenewcapital | Accordingtothenewcapital | |
| Basicearningspershare(yuan/share) | 0.04 | 0.07 | |
| Dilutedearningspershare | 0.04 | 0.07 | |
| Netassetspershare | 5.36 | 5.45 | |
Otherinformationnecessarytodiscloseforthecompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changeofshareswithlimitedsalescondition
√Applicable□Notapplicable
| NameofShareholder | Numberofrestrictedsharesatthebeginningoftheperiod | Increasethenumberofrestrictedsharesinthecurrentperiod | Numberofrestrictedsharesliftedinthecurrentperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonsforrestrictedsale | Releasedate |
| ZhangXiaodong | 5,250 | 1,275 | 0 | 3,975 | Executiveslockstocks | Jan1,2020 |
| Total | 5,250 | 1,275 | 0 | 3,975 | -- | -- |
II.Issuingandlisting
1.ExplanationoftheSituationoftheSecurityIssue(NoPreferredShares)intheReportPeriod
□Applicable√Notapplicable
2.Changeofassetandliabilitystructurecausedbychangeoftotalcapitalsharesandstructure
√Applicable□NotapplicableFordetails,pleaserefertoSection5"15.Implementationofthecompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures(3)Progressofrestrictedstocks".
3.Abouttheexistingemployees’shares
□Applicable√Notapplicable
III.Shareholdersandactualcontrollingshareholder
1.Numberofshareholdersandshareholding
InShares
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 29,622 | Totalshareholdersattheendofthemonthfromthedateofdisclosingtheannualreport | 28,741 | Thetotalnumberofpreferredshareholdersvotingrightsrestoredatperiod-end(ifany)(SeeNotes8) | 0 | Totalpreferredshareholdersattheendofthemonthfromthedateofdisclosingtheannualreport(ifany)(SeeNotes8) | 0 | ||||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | |||||||||||||||
| Shareholders | Natureofshareholder | Proportionofsharesheld（%） | Numberofsharesheldatperiod-end | Changesinreportingperiod | Amountofrestrictedsharesheld | Amountofun-restrictedsharesheld | Numberofsharepledged/frozen | ||||||||
| Stateofshare | Amount | ||||||||||||||
| ShenzhenInvestmentHoldingsCo.,Ltd. | State-ownedlegalperson | 46.10% | 234,069,436 | 0 | 234,069,436 | ||||||||||
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | State-ownedLegalperson | 3.18% | 16,129,032 | 0 | 16,129,032 | ||||||||||
| SunMinghui | DomesticNatureperson | 0.64% | 3,224,767 | 0 | 3,224,767 | ||||||||||
| SuWeipeng | DomesticNatureperson | 0.56% | 2,823,066 | 2249966 | 2,823,066 | ||||||||||
| ChenXiaobao | DomesticNatureperson | 0.49% | 2,509,100 | 2309100 | 2,509,100 | ||
| DengYan | DomesticNatureperson | 0.45% | 2,277,700 | 2277700 | 2,277,700 | ||
| ShenZhenxing | DomesticNatureperson | 0.35% | 1,765,300 | 1765300 | 1,765,300 | ||
| WangZhongjin | DomesticNatureperson | 0.33% | 1,678,000 | 1412400 | 1,678,000 | ||
| HouXiulan | DomesticNatureperson | 0.32% | 1,612,591 | 1612591 | 1,612,591 | ||
| LiZengmou | DomesticNatureperson | 0.31% | 1,598,797 | 452097 | 1,598,797 | ||
| Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued(ifapplicable)（SeeNotes3） | No | ||||||
| Explanationonshareholdersparticipatinginthemargintradingbusiness | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingsCo.,Ltd.,AccordingtothedecisionoftheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,ShenzhenShenchaoTechnologyInvestmentCo.,LtdwastransferredtoShenzhenMajorIndustrialInvestmentGroupCo.,LtdinJune2019.Afterthecompletionofthetransfer,ShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,nolongerholdstheequityofShenzhenShenchaoTechnologyInvestmentCo.,Ltd.,andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.ischangedtoawholly-ownedsubsidiaryoftheIndustrialInvestmentGroup.ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.nolongerconstituteaconcertedpersonrelationship.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies. | ||||||
| Shareholdingoftop10shareholdersofunrestrictedshares | |||||||
| Nameoftheshareholder | Quantityofunrestrictedsharesheldattheend | Sharetype | |||||
| ofthereportingperiod | Sharetype | Quantity | |
| ShenzhenInvestmentHoldingsCo.,Ltd. | 234,069,436 | CommonsharesinRMB | 234,069,436 |
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | 16,129,032 | CommonsharesinRMB | 16,129,032 |
| SunHuiming | 3,224,767 | CommonsharesinRMB | 3,224,767 |
| SuWeipeng | 2,823,066 | Foreignsharesindomesticmarket | 2,823,066 |
| ChenXiaobao | 2,509,100 | CommonsharesinRMB | 2,509,100 |
| DengYan | 2,277,700 | CommonsharesinRMB | 2,277,700 |
| ShenZhenxing | 1,765,300 | CommonsharesinRMB | 1,765,300 |
| WangZhongjing | 1,678,000 | CommonsharesinRMB | 1,678,000 |
| HouXiulan | 1,612,591 | CommonsharesinRMB | 1,612,591 |
| LiZengmou | 1,598,797 | CommonsharesinRMB | 1,598,797 |
| Explanationonassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders | ShenzhenShenchaoTechnologyInvestmentCo.,Ltd.isawholly-ownedsubsidiaryofShenzhenInvestmentHoldingsCo.,Ltd.,AccordingtothedecisionoftheState-ownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernment,ShenzhenShenchaoTechnologyInvestmentCo.,LtdwastransferredtoShenzhenMajorIndustrialInvestmentGroupCo.,LtdinJune2019.Afterthecompletionofthetransfer,ShenzhenInvestmentHoldingsCo.,Ltd.,thecontrollingshareholderofthecompany,nolongerholdstheequityofShenzhenShenchaoTechnologyInvestmentCo.,Ltd.,andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.ischangedtoawholly-ownedsubsidiaryoftheIndustrialInvestmentGroup.ShenzhenInvestmentHoldingsCo.,Ltd.andShenzhenShenchaoTechnologyInvestmentCo.,Ltd.nolongerconstituteaconcertedpersonrelationship.Exceptthis,theCompanydidnotwhetherthereisrelationshipbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandbetweenthetoptenshareholdersholdingnon-restrictednegotiablesharesandthetop10shareholdersorwhethertheyarepersonstakingconcertedactiondefinedinRegulationsonDisclosureofInformationaboutShareholdingofShareholdersofListedCompanies. |
| Explanationonshareholdersparticipatinginthemargintradingbusiness(ifany)(SeeNotes4) | CompanyshareholderChenXiaobaoholds2,332,700sharesthroughacredittransactionsecuredsecuritiesaccount. |
Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod.
□Yes√NoThetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy–backagreementdealinginreportingperiod.
2.Controllingshareholder
NatureofControllingShareholders:LocalstateholdingTypeofControllingShareholders:Legalperson
| NameoftheControllingshareholder | Legalrepresentative/Leader | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| ShenzhenInvestmentHoldingsCo.,Ltd. | WangYongjian | October13,2004 | 76756642-1 | Investmentandacquisitionoffinancialandsimilarfinancialstockrightssuchasbank,security,insurance,fundandguarantee;Engageinrealestatedevelopmentandmanagementbusinesswithinthelimitoflegally-acquiredlanduseright;Carryoutinvestmentandserviceinthefieldofstrategicemergingindustry;Carryoutinvestment,operationandmanagementofstate-ownedstocksofwholly-owned,holdingandjoint-stockcompanybyreorganization&integration,capitaloperationandassetdisposal;OtherbusinessesundertakenbyauthorizationofmunicipalSASAC(StateAssetSupervisionandAdministrationCommission)(Iftheabovebusinessscopeneedstobeapprovedaccordingtonationalregulations,thebusinesscanonlybeoperatedaftertheapprovalisobtained). |
| Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiod | ShenPropertyA（000011），Quantityofshares339.45million，Shareholdingratio：56.96%；SPGA（000029），Quantityofshares642.28million，Shareholdingratio：63.55%；ShenUniverseA（000023），Quantityofshares9.59million，shareholdingratio：6.91%；Pingan（601318），Quantityofshares962.72million，shareholdingratio：5.27%；GuosenSeurities（002736），Quantityofshares3223.11million，shareholdingratio：33.53%；GuotaiJunan（601211），Quantityofshares609.24million，Hshareholdingratio：103.37%,Totalshareholdingratio:8.00%；Tellingholding（000829），Quantityofshares195.03million，shareholdingratio：18.8%；ShenzhenInternational（00152），Quantityofshares：952.01million，shareholdingratio：44.04%；BeautyStar（002243），Quantityofshares：604082million，shareholdingratio：51.93%；HopewellHighway(00737），Quantityofshares：2213.45million，shareholdingratio：71.83%;Infinova（002528），Quantityofshares：315.83million，shareholdingratio：26.35%;EternalAsia（002183），Quantityofshares：388.45million，shareholdingratio：18.3%；ShenEnerty（000027)，Quantityofshares：5.64million，shareholdingratio：0.14%;BankCommunication（601328）Quantityofshares：9.52million，shareholdingratio：0.01%；TehanEcological（300197）Quantityofshares：113.98million，shareholdingratio：4.86%andCHINAVANKE（02202）Quantityofshares：77.278million，shareholdingratio：0.68%. | |||
Changeoftheactualcontrollerinthereportingperiod
□Applicable√NotapplicableNil
3.InformationaboutthecontrollingshareholderoftheCompanyActualcontrollernature:LocalstateownedassetsmanagementActualcontrollertype:Legalperson
| Nameofthecontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Organizationcode | Principalbusinessactivities |
| State-ownedAssetsRegulatoryCommissionofShenzhenMunicipalPeople'sGovernment | YuGang | July31,2004 | K3172806-7 | Performingtheresponsibilitiesofinvestorsonbehalfofthestateandsupervisingandmanagingstate-ownedassetsaccordingtoauthorizationandlaw. |
| Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiod | ExceptforShenzhenHoldingsCo.,Ltd.,theholdingshareholderofthecompany,otherdomesticandforeignlistedcompaniesoftheequityheldbytheactualcontrollerhaven’tbeenshowninthelistofthetoptenshareholdersofthecompany. | |||
Changesoftheactualcontrollerinthereportingperiod
□Applicable√NotapplicableNoChangesoftheactualcontrollerinthereportingperiodBlockDiagramoftheownershipandcontrolrelationsbetweenthecompanyandtheactualcontroller
Theactualcontrollercontrolsthecompanybymeansoftrustormanagingtheassetsinotherway
□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%shareheld
□Applicable√Notapplicable
5.SituationofShareLimitationReductionofControllingShareholders,ActualControllers,RestructuringPartyandOtherCommitmentSubjects
□Applicable√Notapplicable
Chapter7:SituationofthePreferredShares
□Applicable√NotapplicableTheCompanyhadnopreferredsharesinthereportingperiod.
Chapter8:Informationaboutconvertiblecorporatebonds
□Applicable√NotapplicableDuringthereportingperiod,thecompanydidnothaveconvertiblecorporatebonds.
Chapter9:InformationaboutDirectors,SupervisorsandSenior
Executives
I.Changeinsharesheldbydirectors,supervisorsandseniorexecutives
| Name | Positions | Officestatus | Sex | Age | Startingdateoftenure | Expirydateoftenure | Sharesheldattheyear-begin(share) | Amountofsharesincreasedatthereportingperiod(share) | Amountofsharesdecreasedatthereportingperiod(share) | Otherchangesincrease/decrease | Sharesheldattheyear-gegin(share) |
| ZhangJian | Boardchairman，Secretaryofthepartycommittee | Inoffice | Female | 41 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | 0 |
| ZhuMeizhu | DeputySecretaryofthePartycommittee，Director,GeneralManger | Inoffice | Male | 56 | July19,2017 | February9,2024 | 174,000 | 0 | 40,500 | 133,500 |
| NingMaozai | Director,DeputySecretaryofthePartycommitteeandSecretaryoftheCommissionforDiscipline | Inoffice | Male | 45 | December14,2017 | February9,2024 | 73,200 | 0 | 36,600 | 36,600 | |
| YinKefei | Director | Inoffice | Male | 46 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | |
| HeFei | Director,CFO | Inoffice | Male | 43 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | |
| SunMinghui | Director | Inoffice | Male | 39 | February10,2021 | February9,2024 | 0 | 0 | 0 | 0 | |
| HeZuowen | IndependentDirector | Inoffice | Male | 58 | July19,2017 | February9,2024 | 0 | 0 | 0 | 0 | |
| CaiYuanqing | IndependentDirector | Inoffice | Male | 51 | July19,2017 | February9,2024 | 0 | 0 | 0 | 0 | |
| WangKai | IndependentDirector | Inoffice | Male | 37 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 |
| MaYi | Chairmanofthesupervisorycommittee | Inoffice | Male | 54 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | |
| YuanShuwen | Shareholders'Supervisors | Inoffice | Male | 40 | January16,2020 | February9,2024 | 0 | 0 | 0 | 0 | |
| ZhanLumei | Shareholders'Supervisors | Inoffice | Female | 51 | February10,2021 | February9,2024 | 33,600 | 0 | 16,800 | 16,800 | |
| LeKunjui | DeputyGM | Inoffice | Male | 57 | April28,2017 | February9,2024 | 73,200 | 0 | 36,600 | 36,600 | |
| LiuHonglei | DeputyGM | Inoffice | Male | 56 | July19,2017 | February9,2024 | 76,200 | 0 | 36,600 | 39,600 | |
| JiangPeng | Secretarytotheboardofdirectors | Inoffice | Female | 50 | January16,2015 | February9,2024 | 60,000 | 0 | 30,000 | 30,000 | |
| ZhuJun | Boardchairman | Dimission | Male | 57 | January16,2015 | February10,2021 | 82,200 | 0 | 41,100 | 41,100 | |
| HuangYu | Director | Dimission | Male | 46 | July19,2017 | February10,2021 | 0 | 0 | 0 | 0 | |
| WangChuan | Director | Dimission | Male | 48 | September1,2018 | February10,2021 | 0 | 0 | 0 | 0 | |
| HeQiang | IndependentDirector | Dimission | Male | 68 | August16,2013 | January16,2020 | 0 | 0 | 0 | 0 |
| WangWeixing | Chairmanofthesupervisorycommittee | Dimission | Male | 52 | May20,2015 | January16,2020 | 0 | 0 | 0 | 0 | |
| LiLei | Shareholders'Supervisors | Dimission | Male | 45 | June26,2019 | January16,2020 | 0 | 0 | 0 | 0 | |
| ZhangXiaodong | Employeesupervisor | Dimission | Male | 45 | August9,2013 | February10,2021 | 5,300 | 0 | 0 | 5,300 | |
| 合计 | -- | -- | -- | -- | -- | -- | 577,700 | 0 | 238,200 | 0 | 339,500 |
II.Changeinsharesheldbydirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
| Name | Positions | Types | Date | Reason |
| ZhuJun | Boardchairman | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires. |
| HuangYu | Director | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires. |
| WangChuan | Director | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires. |
| HeQiang | IndependentDirector | Leftfortermexpiration | January16,2020 | Thetermofofficeexpires. |
| WangKai | IndependentDirector | Elected | January16,2020 | TheformerindependentdirectorLeftfortermexpiration |
| WangWeixing | Chairmanofthesupervisorycommittee | Left | January16,2020 | Jobchange |
| MaYi | Chairmanofthesupervisorycommittee | Elected | January16,2020 | Theformerchairmanoftheboardofsupervisorsleavesoffice |
| LiLei | Shareholders'Supervisors | Left | January16,2020 | Jobchange |
| YuanShuwen | Shareholders'Supervisors | Elected | January16,2020 | TheformerShareholders'SupervisorsLeavesoffice |
| ZhangXiaodong | Employeesupervisor | Leftfortermexpiration | February10,2021 | Thetermofofficeexpires. |
| ZhanLumei | Employeesupervisor | Elected | February10,2021 | TheformeremployeesupervisorLeftfortermexpiration |
III.Postsholding
Professionalbackground,workexperienceandmaindutiesintheCompanyofexistingdirectors,supervisorsandseniormanagement
(1)Director
ZhangJian,female,borninJune1979,master'sdegree,memberoftheCommunistPartyofChina.ShehasservedasanofficeclerkofthemarketingdepartmentofShenzhenPostalSavingsandForeignExchangeReservesBureau,deputydirectoroftheFinanceDepartmentofShenzhenDevelopmentandReformCommission(formerlyShenzhenDevelopmentandReformBureau),SeniorStaffMember,PrincipalStaffMemberandDeputyDirectoroftheIndustrialCoordinationDepartmentofShenzhenDevelopmentandReformCommission,DeputyDirectoroftheEconomicSystemReformDepartmentofShenzhenDevelopmentandReformCommission,andPartyMemberandDeputyGeneralManagerofShenzhenKunpengEquityInvestmentManagementCo.,Ltd.SheiscurrentlyPartySecretaryandChairmanoftheCompany,andconcurrentlyservesasPartyCommitteeMember,DeputyGeneralManagerandSecretaryoftheBoardofDirectorsofShenzhenSEGGroupCo.,Ltd.,DirectorofShenzhenSEGCo.,Ltd.,ViceChairmanofShenzhenHuakongSEGCo.,Ltd.,ChairmanofShenzhenDamingElectronicsCo.,Ltd.,ChairmanofShenzhenSEGHigh-techInvestmentCo.,Ltd.andChairmanofSEG(HongKong)Co.,Ltd.
ZhuMeizhu,Male,Bornin1964,Masterdegree,Seniorengineer,onceservedsuccessivelyaschiefDeputygeneralManagerofEnterpriseManagementDeptoftheCompany,DirectorofR&DCenter,AssistantGeneralManagerandDeputyGeneralManager,HeservesasdirectorandGeneralManageroftheCompany,andBoardChairmanofSAPOPhotoelectricCo.,Ltd.
NingMaozai,male,bornin1975,bachelordegree,senioradministrationengineer,ChineseCommunistPartymember;hehasservedsuccessivelyastheofficeclerkofShenzhenGuomaoAutomobileIndustryCo.,Ltd,theclerk,principalstaffmember,associatedirectoranddirectorofparty-massofficeofShenzhenProperty
Development(Group)Corp.andholdaconcurrentpostofdeputyhumanresourceDeputymanagerandmanager;Atpresentheholdsthepositionofcompanydirector,deputypartysecretaryandsecretaryofDisciplineInspectionCommitteeoftheCompany.YinKefei,male,borninJuly1974,masterdegree,engineer,memberoftheCommunistPartyofChina.HehasservedasTechnicianandDeputyDirectorofCustomerServiceCenterofPipelineGasBranchofShenzhenGasGroupCo.,Ltd.;DeputyDirector,DirectorofCivilServiceDepartmentandDirectorofGeneralOfficeofPipelineGasCustomerServiceBranchofShenzhenGasGroupCo.,Ltd.;DeputyGeneralManagerofShenzhenGasGroupCo.,Ltd.GanzhouShenranNaturalGasCo.,Ltd.;MemberofthePartyGroupandDeputyDirectoroftheState-ownedAssetsSupervisionandAdministrationCommissionofDongguanCity,GuangdongProvince,andconcurrentlytheViceChairmanofDongguanWaterInvestmentGroupCo.,Ltd.;DeputySecretary-GeneralofDongguanMunicipalGovernmentofGuangdongProvince,PartySecretaryandDirectorofDongguanMunicipalGovernmentLiaisonOfficeinBeijing,andconcurrentlyChairmanoftheBoardofSupervisorsofDongguanBiotechnologyIndustryDevelopmentCo.,Ltd.;DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofDongguanFinancialHoldingGroupCo.,Ltd.,concurrentlyDirectorofDongguanBankandDirectorofDongguanAssetManagementCompany;HeiscurrentlytheDeputyGeneralManagerofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.HeFei,male,borninFebruary1978,master'sdegree,memberofCommunistPartyofChina,Chinesecertifiedpublicaccountant,accountant.HesuccessivelyservedasaccountantofthePlanningandFinanceDepartmentofShenzhenGasGroupCo.,Ltd.,accountantoftheFinanceDepartmentofShenzhenGasInvestmentCo.,Ltd.,whichisaffiliatedtoShenzhenGasGroupCo.,Ltd.,andmanageroftheFinanceDepartmentofHubeiShengjieCleanEnergyCo.,Ltd.,whichisaffiliatedtoShenzhenGasInvestmentCo.,Ltd.;DirectorofGeneralFinanceDepartmentofShenzhenConvention&ExhibitionCenterManagementCo.,Ltd.;ViceDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisthecompanydirectorandchieffinancialofficerofthecompanyandSupervisorofSAPOPhotoelectricCo.,Ltd.SunMinghui,male,borninSeptember1981,masterdegree,accountant,memberoftheCommunistPartyofChina.HehasservedasStaffMemberoftheFinanceDepartmentofShenzhenEnergyFinanceCo.,Ltd.andtheFinancialManagementDepartmentofShenzhenEnergyGroupCo.,Ltd.,FinanceManagementDirectoroftheFinancialBudgetDepartmentofShenzhenInvestmentHoldingsCo.,Ltd.,SeniorDirectoroftheFinanceDepartmentandtheBoardOffice,andDeputyDirectoroftheFinanceDepartment(SettlementCenter).HeiscurrentlytheDirectorofFinanceDepartment(SettlementCenter)ofShenzhenInvestmentHoldingsCo.,Ltd.andDirectoroftheCompany.HeZuowen,male,bornin1962,MBA,associateprofessorinaccountancy,chartedcertifiedaccountantandcertifiedtaxagentinsecuritiesandfuturesindustry.AtpresentheactsasapartnerofDaHuaCertifiedPublicAccountants(SpecialGeneralPartnership)andsecretaryofPartyGeneralBranchofShenzhenBranch,meanwhileheholdsthepositionofchairmanofShenzhenTianyeCertifiedTaxAgentsLimitedCorporation,consultancyexpertofInternalControlStandardCommitteeoftheMinistryofTreasury,judgeofGuangdongSeniorAccountantEvaluationCommittee,memberofCPCShenzhenSocialOrganizationDisciplinaryExaminationCommittee,deputysecretary&secretaryofDisciplineInspectionCommissionofCPCShenzhenCPAIndustryBoard,directorofShenzhenCertifiedTaxAgentsAssociationandindependentdirectorofShenzhenJPTOPTO-ELECTRONICSCo.,Ltd.,IndependentdirectorofShenzhenYiruiBiologyCo.,Ltd.,theCompany'sindependentdirectors，IndependentdirectorofShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.,andIndependentDirectoroftheCompany.
CaiYuanqing,bornin1969,DoctorofLawsofHiroshimaUniversity,professorofLawSchoolofShenzhenUniversity,directorofCompanyLawResearchCenterandGSI(GraduateStudentInstructor);Meanwhile,heactsasanarbitratorofShenzhenArbitrationCommission,independentdirectorofShenzhenRongdaPhotosensitiveScience&TechnologyCo.,Ltd.,IndependentdirectorofShenzhenOufeiTechnologyCo.,Ltd.,IndependentdirectorofOgilvyMedicalSuppliesCo.,ltd.andindependentdirectorsoftheCompany.WangKai,male,bornin1983,Ph.D.ofHuazhongUniversityofScienceandTechnology,MemberoftheCommunistPartyofChina,associateprofessorandresearcherofSouthernUniversityofScienceandTechnologyDepartmentofElectronicandElectricalEngineering,andOutstandingYoungManofGuangdongProvince.HehasservedasamemberoftheTechnicalCommitteeofBeijingBranchofSocietyforInformationDisplay(SID),amemberoftheNationalStandardizationTechnicalCommitteeofFlatPanelDisplayDevices,DeputyDirectoroftheKeyLaboratoryofEnergyConversionandStorageTechnologyoftheMinistryofEducation,andDeputyDirectoroftheKeyLaboratoryofQuantumDotAdvancedDisplayandLightinginGuangdongUniversities,andindependentdirectoroftheCompany.
（2）Supervisor
MaYi,male,bornin1966,bachelor'sdegree,memberofCommunistPartyofChina,assistanteconomist.HehassuccessivelyservedasacadreoftheautomobilemanufacturinganddistributionplantofHainanautomobiletransportationcorporation,directoroftheBusinessDepartment,assistanttothegeneralmanagerandmanageroftheTransportationDepartmentofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,operationdirectorofCoscoLogisticsGuangzhouAntaidaLogisticsCo.,Ltd.,generalmanagerofShenzhenShenjiuInternationalLogisticsCo.,Ltd.GuangzhouBranch,directorofPlanningandDevelopmentDepartment,directorassistant,chiefofFutianstation,deputysecretaryofthePartyCommittee,directorandgeneralmanagerofShenzhenhighwaypassengerandfreighttransportationservicecenter.Heisthecurrentchairmanoftheboardofsupervisorsofthecompany.
YuanShuwen,male,bornin1980,master'sdegree.HehassuccessivelyservedaschiefofShigumanagementstationofHengshancountyruralmanagementbureau,financialdirectorofShenzhenFengchengIronWireProductsCo.,Ltd.,projectmanagerofShenzhenbranchofBDOAccountingFirmCo.,Ltd.,generalledgeraccountantofShenzhenZhenye(Group)Co.,Ltd.,directorofFinancialBudgetDepartmentandseniordirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.Currently,heisvicedirectorofAssessmentandDistributionDepartmentofShenzhenInvestmentHoldingCo.,Ltd.andsupervisoroftheCompany.
ZhanLumei,female,borninJune1969,collegedegree,SeniorLaborRelationsCoordinator,SeniorCareerInstructor,memberoftheCommunistPartyofChina.ShehasservedastheAdministrativePersonnelDirectorofShenzhenHualangGarmentCo.,Ltd.,DirectorandManageroftheHumanResourcesDepartmentoftheCompany.Currently,sheisthevicechairmanoftheFederationofTradeUnions,DirectoroftheParty-massWorkDepartment,andChairmanoftheTradeUnionandtheEmployeeSupervisoroftheCompany.
（3）SeniorExecutives
LeKunjiu,male,bornin1963,bachelordegreeeconomistprofessionaltitleandCPCmember;hehasservedsuccessivelyastheloanofficerofthefinancedepartmentofZhejiangNingboInternationalTrustandInvestmentCorporation,deputydirectoranddirectorofthefinancedepartmentofCITICGroupCorporation,NingboBranch,manageroftheresearchdepartmentofHainanFudaoAssetManagementCo.,Ltd,assistantmanagerofShenzhen
LeaguerVentureCapitalCo.,Ltd,vicepresident&chieffinancialofficerofShenzhenLeaguerDigitalTelevisionCo.,Ltd,chairman&generalmanagerofShenzhenOriscapeElectronicCo.,Ltd,vicepresidentofShenzhenInternationalTechnologyTransferCenter,TsinghuaUniversity,associatedirectoroftheindustrialfundspreparatoryofficeofShenzhenInvestmentHoldingsCo.,LtdandDeputygeneralmanagerofShentouEducation;AtpresentheactsasDeputyGeneralManageroftheCompany,andDirectorofSAPOPhotoelectricCo.,Ltd.
LiuHonglei,male,bornin1964,bachelordegreeandCPCmember,Seniorengineer,HehasservedTechnician,Workdirector,DeputydirectorofofficeofFirstfilmfactoryofMinistryofChemicalEngineering,DirectorofpersonnelEducationDeptofEducationDepartmentofChinaLekaiFilmGroup,hehasservedasthedeputygeneralmanagerandgeneralmanagerofSAPOPhotoelectricCo.,LtdfromJune2012toMay2013andtheheadoftheparty-massworkdepartmentandthemanagerofthebusinessmanagementdepartmentofShenzhenTextile(Holdings)Co.,Ltd;Atpresentheholdsthepositionofdeputygeneralmanagerofthecompany.HeisalsothesecretaryanddirectorofthepartybranchofShenzhenSAPOPhotoelectricTechnologyCo.,Ltd.JiangPeng,Female,bornin1970,BachelorDegree,memberofcommunistparty,ShehasservedasaClerkandDeputySectionChiefoftheofficeofShandongAquaticEnterpriseGroupCorporation,SectionChiefoftheOfficeoftheBoardofDirectorsofShandongZhongluOceanFisheryCo.,Ltd.,DeputyDirectorandSecuritiesAffairsRepresentative.servedasofficeroftheSecretaryOfficeofShandongFisheryGroupCo.,Ltd.,DeputyDirectoroftheSecretaryofficeandSecuritiesaffairsRepresentativeofShandongZhongluOceanicFisheriesCo.,Ltd.,SecuritiesRepresentativeofHuafuHoldingCo.,Ltd.,SecuritiesaffairsrepresentativeandOfficeroftheSecretariatoftheBoardoftheCompany,nowservesasthesecretaryoftheBoardoftheCompany.Officetakinginshareholdercompanies
√Applicable□Notapplicable
| Namesofthepersonsinoffice | Namesoftheshareholders | Titlesengagedintheshareholders | Sharingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromtheshareholder |
| YinKefei | ShenzhenInvestmentHoldingsCo.,Ltd. | DeputyGM | January11,2021 | Yes | |
| SunMinghui | ShenzhenInvestmentHoldingsCo.,Ltd. | DirectorofFinancialDept(Clearingcentre） | November11,2020 | Yes | |
| YuanShuwen | ShenzhenInvestmentHoldingsCo.,Ltd. | DeputyDirectorofdisciplineInspection&Supervision | September18,2017 | Yes |
Officestakeninotherorganizations
√Applicable□Notapplicable
Office
Nameofthepersonsinoffice
| Nameofthepersonsinoffice | Nameofotherorganizations | Titlesengagedintheotherorganizations | Startingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromotherorganization |
| SunMinghui | MeizhouShenmeiYouyiBuildingCo.,Ltd. | Director | January13,2014 | June18,2020 | No |
| SunMinghui | ChinaNanshanDevelopment(Group)Co.,Ltd. | Supervisor | October17,2017 | No | |
| SunMinghui | ShenzhenHighwayPassenger&CargoTransportationServiceCenterCo.,Ltd. | Supervisor | June16,2017 | No | |
| SunMinghui | CASTD | Supervisor | June27,2017 | No | |
| SunMinghui | ULTRARICHINTERNATIONALLIMITED | Director | November11,2020 | No | |
| SunMinghui | ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd. | Director | November11,2020 | No | |
| SunMinghui | SouthernAssetManagementCo.,Ltd. | Supervisor | November11,2020 | No | |
| SunMinghui | HubeiShentoukongInvestmentDevelopmentCo.,Ltd. | Director | November11,2020 | No | |
| SunMinghui | ShenzhenTextile(Holdings)Co.,Ltd. | Director | January25,2021 | No | |
| YuanShuwen | ShenzhenInternationalTenderingCo.,Ltd. | Supervisor | October22,2017 | June10,2020 | No |
| YuanShuwen | ShenzhenTextile(Holdings)Co.,Ltd. | Supervisor | September27,2019 | No |
Punishmentstothecurrentandleavingboarddirectors,supervisorsandseniormanagersduringthereportperiodbysecuritiesregulatorsintherecentthreeyears
□Applicable√Notapplicable
IV.Remunerationtodirectors,supervisorsandseniorexecutives
Decision-makingprocedures,basisfordeterminationandactualpaymentoftheremunerationtodirectors,supervisorsandseniorexecutives
Inthereportperiod,Theremunerationofdirectorsandseniormanagementpaidbythecompanyisdeterminedby“DirectorCompensationManagementSystem”and“ExecutiveCompensationManagementandEvaluationSystem”,theremunerationofindependentdirectorsisdeterminedaspertheresolutionofshareholders’meeting,andtheremunerationofsupervisorspaidbythecompanyisdeterminedbytheirpositionheldinthecompany.
Remunerationtodirectors,supervisorsandseniorexecutivesinthereportingperiod
InRMB10,000
| Name | Positions | Sex | Age | Officestatus | Totalremunerationreceivedfromtheshareholder | Remunerationactuallyreceivesattheendofthereportingperiod |
| ZhangJian | Boardchairman，Secretaryofthepartycommittee | Female | 41 | InOffice | 0 | No |
| ZhuMeizhu | DeputySecretaryofthePartycommittee，Director,GeneralManger | Male | 56 | Inoffice | 122 | No |
| NingMaozai | Director,DeputySecretaryofthePartycommitteeandSecretaryoftheCommissionforDiscipline | Male | 45 | InOffice | 102 | No |
| YinKefei | Director | Male | 46 | InOffice | Yes | |
| HeFei | Director,CFO | Male | 43 | Inoffice | 90 | No |
| SunMinghui | Director | Male | 39 | InOffice | Yes | |
| HeZuowen | IndependentDirector | Male | 58 | InOffice | 12 | Yes |
| CaiYuanqing | IndependentDirector | Male | 51 | Inoffice | 12 | No |
| WangKai | IndependentDirector | Male | 37 | InOffice | 12 | No |
| MaYi | Chairmanofthesupervisorycommittee | Male | 54 | InOffice | 97 | No |
| YuanShuwen | Shareholders'Supervisors | Male | 40 | Inoffice | 0 | Yes |
| ZhanLumei | Employeesupervisor | Female | 51 | InOffice | No | |
| LeKunjui | DeputyGM | Male | 57 | InOffice | 109 | No |
| LiuHonglei | DeputyGM | Male | 56 | Inoffice | 103 | No |
| JiangPeng | Secretarytotheboardofdirectors | Female | 50 | InOffice | 92 | No |
| ZhuJun | Boardchairman | Male | 57 | Dimission | 125 | No |
| HuangYu | Director | Male | 46 | Dimission | 0 | Yes |
| WangChuan | Director | Male | 48 | Dimission | 0 | Yes |
| HeQiang | IndependentDirector | Male | 68 | Dimission | 0.5 | No |
| WangWeixing | Chairmanofthesupervisorycommittee | Male | 52 | Dimission | 0 | No |
| LiLei | Shareholders'Supervisors | Male | 45 | Dimission | 0 | Yes |
| ZhangXiaodong | Employeesupervisor | Male | 45 | Dimission | 41 | Yes |
| Total | -- | -- | -- | -- | 917.5 | -- |
Note:(1)In2020,theremunerationoftheCompany'sexecutiveincludesdeferredremunerationfrom2017to2018;(2)HeZuowen,anindependentdirectorofthecompany,alsoservesasanindependentdirectorofShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.,andreceivesanindependentdirector'sallowancefromShenzhenPropertiesGroup,whichisaholdingsubsidiarycontrolledbyShenzhenInvestmentHoldings,thecontrollingshareholderoftheCompany,andisarelatedpartyoftheCompany.Incentiveequitytodirectors,supervisorsor/andseniorexecutivesinthereportingperiod
□Applicable√Notapplicable
V.Particularsaboutemployees.
1.Staffjobs,education,jobtitlenumberandproportionrefertothefollowingpiechart:
| Numberofin-servicestaffoftheparentcompany（person） | 51 |
| Numberofin-servicestaffofthemainsubsidiaries（person） | 1,318 |
| Totalnumberofthein-servicestaff（person） | 1,369 |
| Totalnumberofstaffreceivingremunerationinthecurrentperiod（person） | 1,369 |
| Thenumberoftheparentcompanyandthemainsubsidiary’sretiredstaffswhoneedtobearthecost（person） | 0 |
| Professional | |
| ClassifiedaccordingbyProfessions | Numberofpersons（person） |
| Production | 996 |
| Sales | 33 |
| Technical | 204 |
| Financial | 35 |
| Administrative | 101 |
| Total | 1,369 |
| Education | |
| Classifiedaccordingbyeducationbackground | Numberofpersons（person） |
| Postgraduateorabove | 36 |
| Universities | 240 |
| Colleges | 114 |
| Mid-schoolorbelow | 979 |
| Total | 1,369 |
2.Remunerationpolicies
In2020,theCompanycarriedoutmanagementforemployees’compensationinstrictaccordancewiththestate’srelevantlawsandregulationsandguaranteedthefairnessandreasonabilityofthecompensation,whichofferedrelevantrewardsandincentivestotheemployees,acceleratethemtojointlydevelopwiththeCompany,andsimultaneouslyreflectedhumanisticcareoftheCompany.
3.Trainingplan
Combiningwiththecompany'sdevelopmentstrategy,wewillcontinuouslystrengthenthecompany'spersonneltrainingsystemtohelpthejointdevelopmentofboththeemployeesandtheCompany.In2020,onthebasisoftheoriginaltrainingwork,wewillhelpemployeesopenupnewhorizonsoflearningfrommultipledimensionsandpromoteemployeestoapplytheorytopracticalwork.First,promoteinternalandexternallearning,communicationandcarryforwardthecultureof"passingon,helpingandguiding",andsharediversifiedcontentsthrough"deepspinninglecturehall";Second,addavarietyofrefinedcoursesandupgradetheplatformof"ShenzhenTextileGroupNetworkCollege";Third,innovateonlineknowledgecontesttowelcomethe40thanniversaryoftheestablishmentofShenzhenSpecialEconomicZone.
4.Outsourcingsituation
□Applicable√Notapplicable
Chapter10:AdministrativestructureI.Basicstateofcorporategovernance
Duringthereportingperiod,theCompanyoperatedinstrictaccordancewiththerequirementsofrelevantlaws,regulationsandnormativedocumentssuchasCompanyLaw,SecuritiesLaw,GuidelinesfortheStandardizedOperationofListedCompaniesofShenzhenStockExchangeandCodefortheGovernanceofListedCompanies,andstrengthenedriskmanagementandcontroltoensurethehealthyandstabledevelopmentoftheCompany.Atpresent,theCompanymaintainsbasicallysoundgovernancesystems,standardizedoperation,andcompletecorporategovernancestructure,andmeetstherequirementsoftheregulatorydocumentsonthegovernanceoflistedcompaniesissuedbyChinaSecuritiesRegulatoryCommission.In2020,companyheldatotalof4generalmeetings,convenedgeneralmeetings,standardizedvotingprocedurestosafeguardtheeffectivenessandlegalityinstrictaccordancewiththeregulationsandrequirementsofCorporationLaw,ArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Companiesactivelyprotectedthevotingrightsofminorityinvestors,andgeneralmeetingswereconvenedintheformoflivenetworktoadequatelyassuresmallinvestorsoftheirrightstoexercise.In2020,theboardofdirectorsheld9meetings,andtheconveningandvotingprocedureswereallconductedinstrictaccordancewiththeArticlesofCorporationandRuleofProcedureofShareholders'Meeting.Allthedirectorsperformeddirectors'duties,exercisedirectors’rights,attendedrelatedmeetingsandactivelyparticipatedinthetrainingandbecamefamiliarwithrelevantlawsandregulationswithserious,diligentandhonestattitudes.IndependentdirectorsindependentlyperformedtheirdutiesinstrictaccordancewithArticlesofCorporation,Theindependentdirectorsystemandotherrelevantlawsandregulations,expressedfullytheirindependentopinionsoncorporateoperation,decision-making,andimportantmatters,etc.Strategy,audit,remuneration,evaluation,nominationcommitteeswereestablishedunderboardofdirectors,allcommitteesfunctionedproperly,andperformeddutiessuchasinternalaudits,compensationassessment,nominationofseniormanagementpersonnel,andprovidedscientificandprofessionaladvisoryopinionsforboardofdirectors’decision-making.
In2020,theboardofsupervisorsheld7meetings.TheboardofsupervisorsstrictlyfollowedtherequirementsofArticlesofCorporationandRulesofprocedureoftheboardofsupervisorsandotherrelevantlawsandregulations,supervisedthelegalcomplianceofthedutiesperformedbycompany'sfinancialpersonnelanddirectors,managersandotherseniormanagementpersonnelintheaimofmaintainingthelegitimaterightsandinterestsofthecompanyanditsshareholders.Allthesupervisorsfulfilledtheirobligations,exercisedtheirrightsaccordingtothelaws.Theconveningandvotingproceduresoftheboardofsupervisorswerelegal,andtheresolutionswerelegalandvalid.Theestablishmentandimplementationofboardofsupervisorsplayedanactiveroleinimprovingcorporategovernancestructureandregulatingcorporateoperations.
In2020,wefurtherincreasedinformationtransparency,accomplishedinvestors’protectionandpropagandawork.Inthereportingperiod,exceptdisclosinginformationinarealaccurate,timely,fairandcompletemannerinaccordancewiththeregulatoryrequirements,
Moreover,theCompanycarriedoutthespecialworkBlueSkyActionaccordingtoNotificationon
ImplementingSpecialWorkwhereInvestorsProtectBlueSkyActionpublishedbyShenzhenSecuritiesBureautoenhancethequalityofinformationdisclosureasthekeypoint,tocontinuouslyperfectthecommunicationmechanismandtopromotethenormativedevelopmentoftheCompany.Meanwhile,theCompanycontinuedtoperfectthevotingmechanismforminorityinvestors.In2018,theminorityinvestors’votingwascountedseparatelyateachofthetwoshareholder’smeetings,andwhoseresultwasdisclosedatthedecisionannouncementattheshareholder’smeeting,whichfullyguaranteedtheexecutionofpoweroftheminorityinvestors.
Moreover,theCompanycarriedoutthespecialworkBlueSkyActionaccordingtoNotificationonImplementingSpecialWorkwhereInvestorsProtectBlueSkyActionpublishedbyShenzhenSecuritiesBureautoenhancethequalityofinformationdisclosureasthekeypoint,tocontinuouslyperfectthecommunicationmechanismandtopromotethenormativedevelopmentoftheCompany.variousplatformsweremadefulluseof,suchastelephone,e-mail,website,especiallytheinteractiveplatformofinvestorsinShenzhenStockExchange,solvedquestionsbroughtbyinvestors,andcommunicatedwithmediumandsmallinvestorsinteractively,andensurealltheinvestorsobtainedequalopportunitiesforinformalaccess.Meanwhile,intheaimofimprovingthetransparencyoflistedcompanies,companyacceptedinvestors’on-siteinvestigationtohavecomprehensiveunderstandingsofthecompany'sbusinesssituationthroughface-to-facecommunicationwithmanagement,alsourgedthecompanyestablishedaresponsibilitytoreturnoninvestors,improvedandenhancedthecorporategovernancestandards.Meanwhile,theCompanycontinuedtoperfectthevotingmechanismforminorityinvestors.In2020,theminorityinvestors’votingwascountedseparatelyateachofthe4shareholder’smeetings,andwhoseresultwasdisclosedatthedecisionannouncementattheshareholder’smeeting,whichfullyguaranteedtheexecutionofpoweroftheminorityinvestors.In2020,accordingtotheStateCouncil'sOpinionsonFurtherImprovingtheQualityofListedCompanies(GF[2020]No.14)andtheShenzhenSecuritiesRegulatoryBureau'sNoticeonPromotingListedCompaniesinJurisdictiontoImplementMainResponsibilities,ImproveGovernanceLevelandAchieveHighQualityDevelopment(SZJGSZi[2020]No.128),theCompanyactivelyformulatedself-inspectionworkplans,organizeddirectors,supervisorsandseniormanagementpersonneloftheCompanyandimportantsubsidiariestocarryoutspecialstudy,setupspecialworkinggroupstoimplementself-inspection,foundoutpotentialrisksandoutstandingproblemsthatrestrictthequalityimprovementoftheCompany,andformulatedfeasiblefollow-uprectificationplans.TheCompanyhasreportedtheSelf-inspectionReportandRectificationPlanonImplementingMainResponsibility,ImprovingGovernanceLevelandAchievingHigh-qualityDevelopmenttoShenzhenSecuritiesRegulatoryBureau,andwillpushforwardthequalityimprovementoflistedcompaniesaccordingtotheaboverectificationplan.Doesthereexistanydifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC,
√Yes□NoThereexistnodifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevantprovisionsofCSRC.
ShenzhenInvestmentHoldingsCo.,Ltd.,theholdingshareholderofthecompany,isaShenzhenSASACenterprise.Thecompanyhascompliedwiththerelevantprovisionsonthestate-ownedassetmanagementofholdingshareholderstoreportnon-publicinformationtoholdingshareholders,mainlyincluding:Letterssubmittedmonthlyindextable;feescheduleduringthereporting,financialassetstable,summaryquarterlydepositsandborrowingsandfinancing.Inordertostrengthenthemanagementofnon-publicinformation,the
companyhasstrictlycontrolledthescopeoflearners,standardizedtheprocessofinformationdeliveryandstrictlyimplementedasperthe“ManagementSystemonLearnerofInsiderInformation”,tookpracticalmeasurestopreventinsideinformationleaksandinsidertrading.Inaddition,thereisnodifferenceamongthegovernanceofthecompany,“CompanyLaw”andtherelevantprovisionsofChinaSecuritiesRegulatoryCommission.
II.IndependenceandCompletenessinbusiness,personnel,assets,organizationandfinanceThecodeofconductofthecontrollingshareholdersofthecompanydidnotgobeyondthegeneralmeetingsdirectlyorindirectlytointerferewiththedecision-makingandbusinessactivities,thecompanyhadindependentandcompletebusinessandautonomousoperationcapacity,achieved“fivepointseparation”inrespectofpersonnel,financial,asset,agencies,business.
III.Competitionsituationsoftheindustry
□Applicable√NotApplicable
IV.AnnualGeneralMeetingandExtraordinaryShareholders’MeetingsintheReportingPeriod
1.AnnualGeneralMeeting
Sessions
| Sessions | Type | Investorparticipationratio | MeetingDate | Disclosuredate | Disclosureindex |
| Thefirstprovisionalshareholders’Generalmeetingin2020 | Provisionalshareholders’GeneralMeeting | 49.17% | January16,2020 | January17,2020 | （http://www.cninfo.com.cn）AnnouncementNo.:2020-01 |
| Thesecondprovisionalshareholders’Generalmeetingin2020 | Provisionalshareholders’GeneralMeeting | 49.13% | April3,2020 | April4,2020 | （http://www.cninfo.com.cn）AnnouncementNo.:2020-22 |
| AnnualGeneralMeetingof | Shareholders’ | 49.14% | June29,2020 | June30,2021 | （http://www.cninfo.com.cn）Announcement |
2019
| 2019 | GeneralMeeting | No.:2020-32 | |||
| Thesecondprovisionalshareholders’Generalmeetingin2020 | Provisionalshareholders’GeneralMeeting | 49.13% | September22,2020 | September23,2020 | （http://www.cninfo.com.cn）AnnouncementNo.:2020-44 |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.Responsibilityperformanceofindependentdirectorsinreportperiod
1.Theattendingofindependentdirectorstoboardmeetingsandshareholders’generalmeeting
| Theattendingofindependentdirectors | |||||||
| IndependentDirectors | NumberofBoardmeetingsnecessarytobeattendedinthereportingperiod | Numberofspotattendances | NumberofmeetingsattendedbyCommunication | Numberofattendancesbyrepresentative | Numberofabsence | Failuretopersonallyattendboardmeetingssuccessivelytwice(Yes/No) | Numberofattendanceatgeneralmeetingsofshareholders |
| HeZuowen | 9 | 1 | 8 | 0 | 0 | No | 4 |
| CaiYuanqing | 9 | 1 | 8 | 0 | 0 | No | 4 |
| WangKai | 9 | 1 | 8 | 0 | 0 | No | 4 |
2.Objectionofindependentdirectorsonsomerelevantissues
Objectionofindependentdirectorsonsomerelevantissues
□Yes√NoIndependentdirectorsproposednoobjectionagainsttherelevantmattersinthereportingperiod.
3.OthernotestodutyperformanceofindependentdirectorsHasanindependentdirector’sadvicetotheCompanybeenaccepted
√Yes□NoExplanationonacceptanceoforfailuretoacceptanindependentdirector’sadvicetotheCompany.Duringthereportingperiod,theCompany'sindependentdirectorsconscientiouslyperformedtheirdutiesinaccordancewiththerequirementsofregulatorylawsandregulationsandthecompany'sIndependentDirectorSystem:
（1）AttendtheboardofdirectorsconvenedbytheCompanyontimeandattendtheshareholders'meetingandotherrelevantmeetings.Beforethemeeting,theindependentdirectorscarefullyreviewedthemeetingmaterials,madefulluseoftheirprofessionaladvantagesandbusinessmanagementexperience,andputforwardreasonableopinionsandsuggestionsontheproposal.Theyalsoexpressedindependentopinionsonrelatedparties'fundoccupation,internalcontrol,changesinaccountingpolicies,profitdistribution,appointmentofauditinstitutions,appointmentofdirectorsandindependentdirectors,appointmentofseniormanagementpersonnel,useofidleraisedfunds,cashmanagementofself-ownedfunds,relatedpartytransactions,repurchaseandcancellationofsomerestrictedstocks,insuranceofdirectors,supervisorsandseniormanagementpersonnel,signingofthePaymentAgreementforthePerformanceCommitmentCompensationfor2018andequitytransfer,givingfullplaytotheguidanceandsupervisionroleofindependentdirectors.
（2）Theindependentdirectorsactivelyparticipatedintheworkoftheboard’sspecialcommittee,andgaveindependentcommentsforeventsinvolvedwiththeCompany’speriodicalreport,dutyperformanceandfurtheremploymentofannualauditinstitution,self-assessmentreportofinternalcontrol,Toexpressopinionsonsuchmattersasnominationofcandidatesfordirectors,whichfactuallymaintainedtheinterestoftheCompanyandtheshareholders’,especiallythepublicshareholder’s,andwhichbenefitedtheboard’scorefunctionatcorporategovernance.
（3）ItkeptcommunicationwiththemanagementoftheCompany,listenedtothereportsofrelevantpersonnelindetail,andfocusedonthetrade,trustfinancing,fundinvestmentoperationofsubsidiarySAPOPhotoelectricduring2017-2018,performancecommitmentcompensationmattersofsubsidiarySAPOPhotoelectric,polarizerindustrializationprojectforsuper-largeTV,entrustedfinancinganddailyrelatedtransactionswithsomeofitsownfunds,soastotimelyunderstandandmastertheprogressofmajorissuesoftheCompany.
（4）TheCompanycheckedmanagementanduseoffundsraisedandsupervisedcompensationandperformanceofdutiesofdirectorsandseniorexecutives,commitmentsoftheCompanyandrelatedpartiesandtheirperformancetopracticallysafeguardtheinterestoftheCompanyasawholeandpreventanyharmonlegitimaterightsandinterestsofminorityshareholders.
VI.DutyPerformanceofSpecialCommitteesundertheBoardofDirectorsintheReportingPeriod
TheindependentdirectorsofthecompanyarethekeymembersofallprofessionalcommitteesoftheBoardofDirectors,andareinthemajorityandtheconvenersofAuditCommittee,RemunerationandAppraisalCommitteeandNominationCommittee.Also,allthethreeindependentdirectorscanattendthedailymeetingheld
byeveryspecialcommitteeontime.
(I)AuditCommittee:Duringthereportingperiod,theAuditCommitteeheldmeetingsandformedresolutionsoninternalauditworkplansandreports,hiringauditinstitutions,theCompany'sproductionandoperationandfinancialstatus,financialfinalaccountsreports,profitdistributionplans,fundraisingreports,internalcontrolself-evaluationreports,andproposalsforhiringauditinstitutions;
(II)RemunerationandAppraisalCommittee:TheRemunerationandAppraisalCommitteeheldmeetingsandformedresolutionsontheissueofrepurchaseandcancellationofsomerestrictedstocksandtheremunerationappraisalofseniormanagersoftheCompanyin2019.
VII.WorkofthesupervisoryCommittee
DidthesupervisoryCommitteefindanyriskexistinginperformingthesupervisionactivitiesinthereportingperiod
□Yes√NoThesupervisoryCommitteehasnoobjectionopinionanymattersundersupervisioninthereportingperiodVIII.AssessmentandincentiveMechanismforSeniorexecutives
Thecompanycomplieswith“ExecutiveCompensationManagementandEvaluationSystem”toconducttheevaluationfortheaccomplishmentofannualworkoftheseniorexecutives.Thesalariesoftheseniorexecutivesaredeterminedaccordingtothedutyscope,postvalue,individualability,wageslevelonthemarket,economicprofitsofthecompanyandoperationgoalaccomplishmentofseniorexecutiveswithadheringtotheprincipleofmarketorientation,responsibilitywithunifiedright,andincentiveandequalrestriction.AccordingtotheactualsituationoftheCompany,the2020annualseniormanagementassessmentplanwillbeimplementedfromMarchtoJune2021.IX.Internalcontrolsituations
1.Specificsituationsonmajordefectsofinternalcontroldiscoveredduringreportperiod
√Yes□No
AboutthesignificantDefectsoftheinternalcontrolfoundintheinternalcontrolself-assessmentreportinthe
reportingperiod
| AboutthesignificantDefectsoftheinternalcontrolfoundintheinternalcontrolself-assessmentreportinthereportingperiod |
| Theidentificationandrectificationofdeficiencyoftheinternalcontrol:1.TheidentificationandrectificationofdeficiencyoftheinternalcontrolinthefinancialstatementInaccordancewithaboveidentificationstandardofdeficiencyoftheinternalcontrolinthefinancialstatement,thereisnotheseriousandimportantdeficiencyofinternalcontrolinthefinancialstatementduringthereportingperiod.2.Theidentificationandrectificationofdeficiencyoftheinternalcontrolexceptforthatofthefinancialstatementinaccordancewithaboveidentificationstandardofdeficiencyoftheinternalcontrolexceptforthatofthefinancialstatement,thereisnotheseriousandimportantdeficiencyofinternalcontrolexceptforthatofthefinancialstatementduringthereportingperiod. |
2.Self-evaluationreportoninternalcontrol
| Disclosuredateofappraisalreportoninternalcontrol | March12,2021 |
Disclosureindexofappraisalreportoninternalcontrol
| Disclosureindexofappraisalreportoninternalcontrol | JuchaoWebsite:（http://www.cninfo.com.cn）,Self-evaluationreportofinternalcontrolin2020 | |
| Proportionoftotalunitassetscoveredbyappraisalinthetotalassetsoftheconsolidatedfinancialstatementsofthecompany | 100.00% | |
| Proportionoftotalunitincomescoveredbyappraisalinthetotalbusinessincomesoftheconsolidatedfinancialstatementsofthecompany | 100.00% | |
| StandardsofDefectsEvaluation | ||
| Category | FinancialReport | Non-financialReport |
| Qualitativestandard | Thedefectsrelatedtofinancialreportsweredividedintogeneraldefects,importantdefectsandsignificantdefectsaccordingtotheirseverity.Significantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,whichmayleadtoseriousdeviationfromthecontrollingobjectives.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects. | Inthefollowingcircumstances,thecompanywasidentifiedasexistingnon-financial–reportingrelatedsignificantdefectsofinternalcontrollingdefects:Thebusinessactivitiesofthecompanyseriouslyviolatednationallawsandregulations;(2)Thedecision-makingprocessof"Three-Importance&One-Large"wereunscientific,leadingtomajordecisionerrors,andcausingmajorpropertylosestothecompany;(3)Massivelossofkeypostsortechnologytalents;(4)Thecontrollingsysteminvolvingimportantbusinessfieldsofthecompanyfailed;(5)ItCausedseriousnegativeeffectsonbusinessofthecompany,andtheeffectscouldn’tbeeliminated;(6)Theevaluationresultsofinternalcontrolweresignificantdefects,andcouldn’t |
geteffectiverectification.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects.
| geteffectiverectification.Importantdefectsreferredtooneormultiplecombinationsofcontrollingdefects,andtheirseverityandeconomicconsequenceswerebelowsignificantdefects,buttheycouldstillleadtoseriousdeviationfromthecontrollingobjectives.Generaldefectsreferredtootherinternalcontrollingdefectswhichcouldn'tconstitutesignificantdefectsorimportantdefects. | ||
| Quantitativecriteria | Misstatementamountoffinancialstatementfellintothefollowingintervals:significantdefects:Misstatementamount≥1.5%oftotalrevenue;Misstatementamount≥10%ofgrossprofit;Misstatementamount≥1%oftotalasset;Misstatementamount≥5%ofnetasset.significantdefects:0.5%ofTotalrevenue≤Misstatementamount＜1.5%oftotalrevenue;5%ofgrossprofit≤Misstatementamount＜10%ofgrossprofit;0.5%ofTotalasset≤Misstatementamount＜1%oftotalrevenue;3%ofNetassets≤Misstatementamount＜5%ofnetassets.Generaldefects:0%oftotalrevenue＜Misstatementamount＜0.5%ofTotalrevenue;2%ofgrossprofit＜Misstatementamount＜5%oftotalprofit;0%oftotalassets＜Misstatementamount＜0.5oftotalassets;0%ofnetassets＜Misstatementamount＜3%ofnetassets. | Notapplicable |
| Numberofmajordefectsinfinancialreporting（a） | 0 | |
| Numberofmajordefectsinnonfinancialreporting(a) | 0 | |
Numberofimportantdefectsinfinancialreporting（a）
| Numberofimportantdefectsinfinancialreporting（a） | 0 |
| Numberofimportantdefectsinnonfinancialreporting（a） | 0 |
X.InternalControlauditreport
√Applicable□Notapplicable
| Reviewopinionsintheinternalcontrolauditreport | |
| ToallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.：Accordingtotherelevantrequirementsofthe“AuditGuidelineofEnterpriseInternalControl”andtheChineseCPAcriteria,thecompanyhasauditedtheeffectivenessofinternalcontrolofthefinancialstatementofShenzhenTextile(Holdings)Co.,Ltd.(ShenzhenTextile)atthedateofDecember31,2020.1.Theresponsibilityofenterprisefortheinternalcontrol.Accordingtotheprovisionsof“FundamentalNormsforEnterpriseInternalControl”,“OperationGuidelineofEnterpriseInternalControl”and“EvaluationGuidelineofEnterpriseInternalControl”,thecompanyhasestablished,perfectedandeffectivelyimplementedtheinternalcontrol,andmadeanevaluationforitseffectiveness,whicharetheresponsibilitiesoftheBoardofDirectorsofShenzhenTextile.2.TheresponsibilityofCPA.Thecompanyshallberesponsiblefortheexpressionofauditopinionsontheeffectivenessofinternalcontrolinthefinancialstatementandthedisclosureofseriousdeficiencyofinternalcontrolexceptforthefinancialstatementonthebasisoftheimplementationofaudit.3.Theinherentlimitationofinternalcontrol.Thereisthepossibilityofunpreventableerrors.Inaddition,duetothechangeofsituation,theinappropriateinternalcontrolismaybeshown,orthecontrolpolicyandtheabidanceofprocedurecanbereduced.Basedontheauditresultsofinternalcontrol,thefutureinternalcontrolisexpectedtohaveacertainrisk.4.Theauditopinionsofinternalcontrolinthefinancialstatement.ThecompanybelievesthatShenzhenTextilehasmaintainedtheeffectiveinternalcontrolofthefinancialstatementinallthemajoraspectsaccordingto“FundamentalNormsforEnterpriseInternalControl”andtherelevantprovisionsonDecember31,2020.GrantThorntonInternationalLtd.(SpecialGeneralPartnership)ChineseC.P.A.ChenZhifangChineseC.P.A.LiYaoMarch10,2021 | |
| Disclosuredateofauditreport | Disclosure |
ofinternalcontrol(full-text)
| ofinternalcontrol(full-text) | |
| Indexofauditreportofinternalcontrol(full-text) | March12,2021 |
| Internalauditreport’sopinion | JuchaoWebsite:（http://www.cninfo.com.cn）;AuditreportofinternalcontroloftheCompany |
| Typeofauditreportoninternalcontrol | Unqualifiedauditor’sreport |
| Whetherthereissignificantdefectionnon-financialreport | No |
HastheCPAsissuedaqualifiedauditor’sreportofinternalcontrol.
□Yes√NoDoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardofDirectors
√Yes□No
Chapter11:CorporationbondsWhetherornottheCompanypublicofferingcorporationbondsinstockexchange,whichundueorwithoutpaymentinfullatmaturityontheapprovaldateforannualreportdisclosedNo
Chapter12:FinancialReportI.Auditreport
Typeofauditopinion
| Typeofauditopinion | StandardUnqualifiedopinion |
| Typeofauditopinion | March10,2021 |
| Nameofauditfirm | GrantThorntonInternationalLtd.(SpecialGeneralPartnership) |
| Theauditreportnumber | ZiTongShenZi（2021）No.:110ASXXXX |
| Nameofthecertifiedaccountants | ChenZhifang,LiYao |
Auditors’Report
ToallshareholdersofShenzhenTextile(Holdings)Co.,Ltd.：
I.Opinion
WehaveauditedthefinancialstatementsofShenzhenTextile(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisethebalancesheetasatDecember31,2020,andtheincomestatement,thestatementofcashflowsandthestatementofchangesinowners'equityfortheyearthenendedandnotestothefinancialstatements.Inouropinion,theattachedfinancialstatementsareprepared,inallmaterialrespects,inaccordancewithAccountingStandardsforBusinessEnterprisesandpresentfairlythefinancialpositionoftheCompanyasatDecember31,2020anditsoperatingresultsandcashflowsfortheyearthenended.II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
(1)RecognitionofrevenuePleaserefertoNoteIII,26andNoteV,35tothefinancialstatementfordetailsoftherelevantinformationdisclosure.
1.DescriptionofmattersTheoperatingincomeofShenzhenTextilein2020wasRMB2,108,964,700,ofwhichthemainbusinessincomewasRMB2,097,432,900,accountingfor99.45%.AsrevenueisoneofthekeyperformanceindicatorsofShenzhenTextile,thereisinherentriskthattheCompany'smanagementmanipulatesrevenuerecognitioninordertoachievespecificgoalsorexpectations,andsincethemainbusinessincomeislarge,weidentifyrevenuerecognitionasakeyaudititem.
2.ResponsetotheauditForrevenuerecognition,wemainlyimplementedthefollowingauditprocedures:
(1)Understand,evaluateandtestthedesigneffectivenessandoperationeffectivenessofinternalcontrolrelatedtosalesrevenuecycle;
(2)Obtainthemainsalescontractsaccordingtotheproductsandbusinesstypes,checktherelevantclausesrelatedtorevenuerecognition,andinterviewthemanagementtoevaluatewhethertherevenuerecognitionmeetstherequirementsofaccountingstandards;
(3)Implementanalyticalprocedures,comparethechangesofincomebetweenthisyearandlastyearaccordingtoproducttypes,observethefluctuationsofincomebetweenmonthsandthechangesofimportantcustomersinthisperiod,andanalyzetherationalityofincomechangesbasedonfactorssuchasthecompany'sproductioncapacity,marketexpansionandindustrytrends;
(4)Performdetailedteststocheckwhetherthebasisrelatedtosalesrevenuerecognitionissufficient,includingcheckingsalescontractsorperformingdetailedtests,includingcheckingsalescontractsororders,deliveryorders,customsdeclarationsandothersupportingdocuments,evaluatetheauthenticityandaccuracyofrevenuerecognition,andevaluatetheauthenticityandaccuracyofrevenuerecognition;
(5)Performcut-offtesttoevaluatewhetherincomeisrecordedintheproperaccountingperiod;
(6)Selectsamplesfrommajorcustomersonthisrecognitionprocedures,andperformalternativetestsonthenon-repliedpartstojudgetheauthenticityofsalesrevenue.
(2)InventoryfallingpricereservesPleaserefertoNoteIII,12andNoteV,8tothefinancialstatementfordetailsoftherelevantinformationdisclosure.
1.DescriptionofmattersAsofDecember31,2020,thebalanceofinventorydepreciationreserveofShenzhenTextileisRMB75,474,600.Astheinventorydepreciationreserveanditschangeshaveasignificantinfluenceonthefinancialstatements,thedeterminationofthenetrealizablevalueofinventoryinvolvesthemajorjudgmentandestimationofthemanagement,soweidentifytheinventorydepreciationreserveasakeyaudititem.
2.Responsetotheaudit
Theauditprocessimplementedforinventoryfallingpricereservesincludesmainly:
(1)Understand,evaluateandtestthedesignandoperationeffectivenessofinternalcontrolrelatedtoinventorydepreciationreserve;
(2)UnderstandandevaluatetheappropriatenessoftheCompany'saccrualpolicyforinventorydepreciation
reserve;
(3)Understandandinquireaboutinventorystoragelocationandinventoryaccountingmethod,anddeterminethescopeofinventorysupervision;Implementinventorysupervisionprocedurestocheckwhethertheinventoryisdamaged,obsolete,outdated,defective,etc.;
(4)Obtaintheinventoryyear-endinventoryagelist,andcarryoutanalyticalreviewofinventoryageaccordingtothestatusofproductstoanalyzewhethertheinventorydepreciationreserveisreasonable;
(5)Reviewandevaluatetherationalityofthemajorestimatesmadebythemanagementwhendeterminingthenetrealizablevalue;
(6)Obtainthecalculationtableofinventorydepreciationreserve,checkwhethertheaccrualofinventorydepreciationreserveisimplementedaccordingtorelevantaccountingpolicies,andrecalculatetheinventorydepreciationreserve;Checkthechangesofinventorydepreciationaccruedinpreviousyears,evaluatetherationalityofestimatedsellingpriceandestimatedrelatedtaxesandfeesaskeyparametersofnetrealizablevalue,reviewthesufficiencyofbasisofestimatedsellingprice,andanalyzetherationalityofinventorydepreciationreserve.IV.Otherinformation
ThemanagementoftheCompanyisresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2019,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.WehavenothingtoreportinthisregardV.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsTheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagementoftheCompany.
(4)ConcludeontheappropriatenessofusingthegoingconcernassumptionbythemanagementoftheCompany,andconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatementsandbearallliabilityfortheopinion.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.
Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
GrantThorntonInternationalLtd.(SpecialGeneralPartnership)
ChineseC.P.A.ChenZhifang（ProjectPartner)ChineseC.P.A.LiYao
March10,2021BeijingChinaII.FinancialStatementsStatementinFinancialNotesarecarriedinRMB/CNY
1.ConsolidatedbalancesheetPreparedby:ShenzhenTextile(Holdings)Co.,Ltd.
December31,2019
InRMB
Items
| Items | December31,2020 | December31,2019 |
| Currentasset： | ||
| Monetaryfund | 279,087,236.95 | 409,564,847.52 |
| Settlementprovision | ||
| Outgoingcallloan | ||
| Transactionalfinancialassets | 684,617,260.06 | 830,000,000.00 |
| Derivativefinancialassets | ||
| Notereceivable | 16,813,657.28 | 40,424,601.97 |
| Accountreceivable | 547,310,217.90 | 365,325,029.38 |
| Financingofreceivables | 102,051,314.08 | 17,933,597.98 |
| Prepayments | 16,902,516.39 | 18,445,857.53 |
| Insurancereceivable | ||
| Reinsurancereceivable | ||
| ProvisionsofReinsurancecontractsreceivable | ||
| Otheraccountreceivable | 5,265,002.71 | 12,440,761.13 |
Including：Interestreceivable
| Including：Interestreceivable | 7,610,043.19 | |
| Dividendreceivable | ||
| Repurchasingoffinancialassets | ||
| Inventories | 480,847,581.44 | 391,717,935.12 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetduewithin1year | ||
| Othercurrentasset | 77,482,083.47 | 140,821,609.72 |
| Totalofcurrentassets | 2,210,376,870.28 | 2,226,674,240.35 |
| Non-currentassets： | ||
| Loansandpaymentonother’sbehalfdisbursed | ||
| Creditor'srightinvestment | ||
| OtherCreditor'sinvestment | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 147,929,137.23 | 152,209,929.72 |
| Otherequityinstrumentsinvestment | 190,607,427.54 | 248,781,946.73 |
| Othernon-currentfinancialassets | 30,650,943.40 | |
| Realestateinvestment | 110,572,471.92 | 112,730,320.90 |
| Fixedassets | 790,183,905.38 | 903,229,077.83 |
| Constructioninprogress | 1,301,750,141.12 | 839,866,275.92 |
Productionphysicalassets
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 36,048,978.91 | 36,517,996.34 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 2,876,561.53 | 2,692,750.67 |
| Deferredincometaxasset | 5,243,425.26 | 5,618,026.43 |
| Othernon-currentasset | 143,307,689.66 | 3,079,321.10 |
| Totalofnon-currentassets | 2,759,170,681.95 | 2,304,725,645.64 |
| Totalofassets | 4,969,547,552.23 | 4,531,399,885.99 |
| Currentliabilities | ||
| Short-termloans | ||
| LoanfromCentralBank | ||
| Borrowingfunds | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountpayable | 329,468,601.90 | 241,297,770.64 |
| Advancereceipts | 3,542,394.33 | 30,530,117.62 |
| Contractliabilities | 279,631.27 | |
| Sellingofrepurchasedfinancialassets |
Deposittakingandinterbankdeposit
| Deposittakingandinterbankdeposit | ||
| Entrustedtradingofsecurities | ||
| Entrustedsellingofsecurities | ||
| Employees’wagepayable | 55,642,549.53 | 38,556,180.20 |
| Taxpayable | 12,198,522.02 | 22,545,550.33 |
| Otheraccountpayable | 156,118,440.42 | 152,645,780.14 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsurancefeepayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | ||
| Othercurrentliability | ||
| Totalofcurrentliability | 557,250,139.47 | 485,575,398.93 |
| Non-currentliabilities： | ||
| Reservefundforinsurancecontracts | ||
| Long-termloan | 343,100,174.35 | |
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability |
Long-termpayable
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 110,740,322.21 | 121,264,571.22 |
| Deferredincometaxliability | 59,141,666.58 | 69,944,345.66 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 512,982,163.14 | 191,208,916.88 |
| Totalofliability | 1,070,232,302.61 | 676,784,315.81 |
| Owners’equity | ||
| Sharecapital | 507,772,279.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,967,514,358.53 | 1,974,922,248.03 |
| Less：Sharesinstock | 7,525,438.20 | 16,139,003.40 |
| Othercomprehensiveincome | 116,605,932.42 | 119,737,783.31 |
| Specialreserve | ||
| Surplusreserves | 94,954,652.14 | 90,596,923.39 |
| Commonriskprovision | ||
| Retainedprofit | 86,912,390.50 | 49,307,764.03 |
| Totalofowner’sequitybelongtotheparentcompany | 2,766,234,174.39 | 2,727,764,144.36 |
| Minorityshareholders’equity | 1,133,081,075.23 | 1,126,851,425.82 |
Totalofowners’equity
| Totalofowners’equity | 3,899,315,249.62 | 3,854,615,570.18 |
| Totalofliabilitiesandowners’equity | 4,969,547,552.23 | 4,531,399,885.99 |
LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing
2.ParentCompanyBalanceSheet
InRMB
| Items | December31,2020 | December31,2019 |
| Currentasset： | ||
| Monetaryfund | 113,560,327.21 | 27,979,338.37 |
| Transactionalfinancialassets | 514,277,000.82 | 650,000,000.00 |
| Derivativefinancialassets | ||
| Notereceivable | ||
| Accountreceivable | 1,461,400.20 | 522,931.04 |
| Financingofreceivables | ||
| Prepayments | 18,706.17 | 768,099.94 |
| Otheraccountreceivable | 7,450,934.40 | 17,039,506.00 |
| Including：Interestreceivable | 7,329,228.31 | |
| Dividendreceivable | ||
| Inventories | 8,808.00 | |
| Contractassets | ||
| Assetsheldforsales |
Non-currentassetduewithin1year
| Non-currentassetduewithin1year | ||
| Othercurrentasset | ||
| Totalofcurrentassets | 636,777,176.80 | 696,309,875.35 |
| Non-currentassets： | ||
| Creditor'srightinvestment | ||
| OtherCreditor'sinvestment | ||
| Long-termreceivable | ||
| Longtermshareequityinvestment | 2,103,977,343.32 | 2,102,430,511.88 |
| Otherequityinstrumentsinvestment | 177,142,433.45 | 206,816,952.64 |
| Othernon-currentfinancialassets | ||
| Realestateinvestment | 101,644,481.93 | 107,199,622.80 |
| Fixedassets | 21,876,099.34 | 25,500,695.77 |
| Constructioninprogress | 19,552.00 | |
| Productionphysicalassets | ||
| Oil&gasassets | ||
| Userightassets | ||
| Intangibleassets | 492,923.62 | 659,937.75 |
| Developmentexpenses | ||
| Goodwill | ||
| Long-germexpensestobeamortized | 800,858.17 | |
| Deferredincometaxasset | 5,097,360.00 | 5,466,478.06 |
Othernon-currentasset
| Othernon-currentasset | 96,871,196.43 | |
| Totalofnon-currentassets | 2,507,101,838.09 | 2,448,894,609.07 |
| Totalofassets | 3,143,879,014.89 | 3,145,204,484.42 |
| Currentliabilities | ||
| Short-termloans | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notepayable | ||
| Accountpayable | 411,743.57 | 411,743.57 |
| Advancereceipts | 639,024.58 | 2,878,936.58 |
| ContractLiabilities | 2,236,912.00 | |
| Employees’wagepayable | 14,824,723.81 | 11,910,175.11 |
| Taxpayable | 11,497,591.21 | 20,801,961.18 |
| Otheraccountpayable | 95,023,378.12 | 119,984,209.60 |
| Including：Interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilityduewithin1year | ||
| Othercurrentliability | ||
| Totalofcurrentliability | 124,633,373.29 | 155,987,026.04 |
| Non-currentliabilities： | ||
| Long-termloan |
Bondpayable
| Bondpayable | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Leaseliability | ||
| Long-termpayable | ||
| Long-termremunerationpayabletostaff | ||
| Expectedliabilities | ||
| Deferredincome | 500,000.00 | 600,000.00 |
| Deferredincometaxliability | 56,150,418.06 | 66,953,097.14 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 56,650,418.06 | 67,553,097.14 |
| Totalofliability | 181,283,791.35 | 223,540,123.18 |
| Owners’equity | ||
| Sharecapital | 507,772,279.00 | 509,338,429.00 |
| Otherequityinstruments | ||
| Including：preferredstock | ||
| Sustainabledebt | ||
| Capitalreserves | 1,583,307,509.86 | 1,589,869,499.36 |
| Less：Sharesinstock | 7,525,438.20 | 16,139,003.40 |
| Othercomprehensiveincome | 91,494,901.23 | 110,764,037.74 |
| Specialreserve | ||
| Surplusreserves | 94,954,652.14 | 90,596,923.39 |
| Retainedprofit | 692,591,319.51 | 637,234,475.15 |
Totalofowners’equity
| Totalofowners’equity | 2,962,595,223.54 | 2,921,664,361.24 |
| Totalofliabilitiesandowners’equity | 3,143,879,014.89 | 3,145,204,484.42 |
3.ConsolidatedIncomestatement
InRMB
| Items | Year2020 | Year2019 |
| I.Incomefromthekeybusiness | 2,108,964,687.80 | 2,158,184,855.71 |
| Incl：Businessincome | 2,108,964,687.80 | 2,158,184,855.71 |
| Interestincome | ||
| Insurancefeeearned | ||
| Feeandcommissionreceived | ||
| II.Totalbusinesscost | 2,030,833,538.40 | 2,168,659,186.75 |
| Incl：Businesscost | 1,814,298,395.02 | 1,973,495,608.35 |
| Interestexpense | ||
| Feeandcommissionpaid | ||
| Insurancedischargepayment | ||
| Netclaimamountpaid | ||
| Netamountofwithdrawalofinsurancecontractreserve | ||
| Insurancepolicydividendpaid | ||
| Reinsuranceexpenses | ||
| Businesstaxandsurcharge | 7,347,125.65 | 8,466,143.40 |
| Salesexpense | 28,644,230.87 | 20,785,078.66 |
| Administrativeexpense | 105,094,934.36 | 96,870,842.37 |
R&Dcosts
| R&Dcosts | 67,160,964.22 | 53,178,714.33 |
| Financialexpenses | 8,287,888.28 | 15,862,799.64 |
| Including：Interestexpense | 234,815.67 | 4,893,018.58 |
| Interestincome | 3,702,735.59 | 8,593,894.58 |
| Add:Otherincome | 29,506,252.69 | 27,547,902.92 |
| Investmentgain（“-”forloss） | 22,599,670.74 | 78,038,530.25 |
| Incl:investmentgainsfromaffiliates | -3,446,613.86 | -7,404,083.27 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Gainsfromcurrencyexchange | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | 2,687,518.74 | |
| Creditimpairmentloss | -10,394,533.65 | 7,005,890.93 |
| Impairmentlossofassets | -72,412,477.63 | -97,172,532.71 |
| Assetsdisposalincome | 276,544.73 | 3,967.97 |
| III.Operationalprofit（“-”forloss） | 50,394,125.02 | 4,949,428.32 |
| Add：Non-operationalincome | 1,445,662.38 | 5,003,548.34 |
| Less:Non-operatingexpense | 138,421.27 | 420,575.07 |
| IV.Totalprofit(“-”forloss) | 51,701,366.13 | 9,532,401.59 |
| Less：Incometaxexpenses | 8,203,720.98 | 28,059,080.22 |
| V.Netprofit | 43,497,645.15 | -18,526,678.63 |
| (I)Classificationbybusinesscontinuity | ||
| 1.Netcontinuingoperatingprofit | 43,497,645.15 | -18,526,678.63 |
| 2.Terminationofoperatingnetprofit |
(II)Classificationbyownership
| (II)Classificationbyownership | ||
| 1.Netprofitattributabletotheownersofparentcompany | 37,267,995.74 | 19,679,910.43 |
| 2.Minorityshareholders’equity | 6,229,649.41 | -38,206,589.06 |
| VI.Netafter-taxofothercomprehensiveincome | -3,131,850.89 | -52,500,997.28 |
| Netofprofitofothercomprehensiveincomeattributabletoownersoftheparentcompany. | -3,131,850.89 | -52,500,997.28 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | -2,815,824.67 | -52,715,913.64 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | -2,815,824.67 | -52,715,913.64 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| （II）Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | -316,026.22 | 214,916.36 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets |
4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | -316,026.22 | 214,916.36 |
| 7.Other | ||
| NetofprofitofothercomprehensiveincomeattributabletoMinorityshareholders’equity | ||
| VII.Totalcomprehensiveincome | 40,365,794.26 | -71,027,675.91 |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | 34,136,144.85 | -32,821,086.85 |
| Totalcomprehensiveincomeattributableminorityshareholders | 6,229,649.41 | -38,206,589.06 |
| VIII.Earningspershare | ||
| （I）Basicearningspershare | 0.07 | 0.04 |
| (II)Dilutedearningspershare | 0.07 | 0.04 |
LegalRepresentative:ZhangJianPerson-in-chargeoftheaccountingwork：HeFeiPerson-in-chargeoftheaccountingorgan：ZhuJingjing
4.IncomestatementoftheParentCompany
InRMB
| Items | Year2020 | Year2019 |
| I.Incomefromthekeybusiness | 61,296,888.21 | 123,585,753.10 |
| Incl：Businesscost | 10,666,274.44 | 60,654,551.98 |
| Businesstaxandsurcharge | 2,435,257.11 | 3,088,345.17 |
Salesexpense
| Salesexpense | ||
| Administrativeexpense | 38,680,586.21 | 38,275,813.43 |
| R&Dexpense | ||
| Financialexpenses | -1,020,628.37 | -2,114,743.82 |
| Including：Interestexpenses | 13,780.96 | 476,191.57 |
| Interestincome | 1,012,329.64 | 2,611,348.37 |
| Add：Otherincome | 117,006.72 | 106,720.83 |
| Investmentgain（“-”forloss） | 35,656,479.65 | 68,053,467.35 |
| Including:investmentgainsfromaffiliates | -3,446,613.86 | -7,404,083.27 |
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome | ||
| Netexposurehedgingincome | ||
| Changingincomeoffairvalue | 392,767.12 | |
| Creditimpairmentloss | -799,858.92 | -194,490.83 |
| Impairmentlossofassets | -95,343.40 | |
| Assetsdisposalincome | 286,963.56 | 280.00 |
| II.Operationalprofit（“-”forloss） | 46,093,413.55 | 91,647,763.69 |
| Add：Non-operationalincome | 562,910.99 | 146,868.07 |
| Less：Non-operationalexpenses | 27,244.40 | |
| III.Totalprofit(“-”forloss) | 46,629,080.14 | 91,794,631.76 |
| Less：Incometaxexpenses | 7,746,152.13 | 25,628,936.32 |
| IV.Netprofit | 38,882,928.01 | 66,165,695.44 |
| 1.Netcontinuingoperatingprofit | 38,882,928.01 | 66,165,695.44 |
| 2.Terminationofoperatingnetprofit |
V.Netafter-taxofothercomprehensiveincome
| V.Netafter-taxofothercomprehensiveincome | -3,131,850.89 | -52,500,997.28 |
| （I）Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/lossesinthesubsequentaccountingperiod | -2,815,824.67 | -52,715,913.64 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodinvesteecannotbereclassifiedintoprofitorloss. | ||
| 3.Changesinthefairvalueofinvestmentsinotherequityinstruments | -2,815,824.67 | -52,715,913.64 |
| 4.Changesinthefairvalueofthecompany’screditrisks | ||
| 5.Other | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | -316,026.22 | 214,916.36 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss. | ||
| 2.Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 3.Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 4.Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.Reserveforcashflowhedges | ||
| 6.Translationdifferencesincurrencyfinancialstatements | -316,026.22 | 214,916.36 |
| 7.Other | ||
| VI.Totalcomprehensiveincome | 35,751,077.12 | 13,664,698.16 |
VII.Earningspershare
| VII.Earningspershare |
| （I）Basicearningspershare |
| (II)Dilutedearningspershare |
5.ConsolidatedCashflowstatement
InRMB
| Items | Year2020 | Year2019 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 1,827,292,276.43 | 2,239,603,149.40 |
| Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany | ||
| Netincreaseofloansfromcentralbank | ||
| Netincreaseofinter-bankloansfromotherfinancialbodies | ||
| Cashreceivedagainstoriginalinsurancecontract | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseofclientdepositandinvestment | ||
| Cashreceivedfrominterest,commissionchargeandcommission | ||
| Netincreaseofinter-bankfundreceived | ||
| Netincreaseofrepurchasingbusiness | ||
| Netcashreceivedbyagentinsecuritiestrading | ||
| Taxreturned | 116,428,895.93 | 37,887,179.50 |
| Othercashreceivedfrombusinessoperation | 123,408,000.43 | 61,696,291.74 |
| Sub-totalofcashinflow | 2,067,129,172.79 | 2,339,186,620.64 |
Cashpaidforpurchasingofmerchandiseandservices
| Cashpaidforpurchasingofmerchandiseandservices | 1,742,576,211.51 | 1,664,396,359.07 |
| Netincreaseofclienttradeandadvance | ||
| Netincreaseofsavingsincentralbankandbrothercompany | ||
| Cashpaidfororiginalcontractclaim | ||
| Netincreaseinfinancialassetsheldfortradingpurposes | ||
| NetincreaseforOutgoingcallloan | ||
| Cashpaidforinterest,processingfeeandcommission | ||
| Cashpaidtostaffsorpaidforstaffs | 181,692,353.93 | 163,768,856.39 |
| Taxespaid | 43,712,017.07 | 31,514,698.29 |
| Othercashpaidforbusinessactivities | 97,217,657.52 | 96,360,918.39 |
| Sub-totalofcashoutflowfrombusinessactivities | 2,065,198,240.03 | 1,956,040,832.14 |
| Netcashgeneratedfrom/usedinoperatingactivities | 1,930,932.76 | 383,145,788.50 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 6,437,640.00 | 60,428,769.00 |
| Cashreceivedasinvestmentgains | 2,908,856.94 | 5,821,323.94 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 2,800,914.39 | 298,580.00 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 3,240,861,003.37 | 4,164,457,418.70 |
| Sub-totalofcashinflowduetoinvestmentactivities | 3,253,008,414.70 | 4,231,006,091.64 |
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 564,014,103.94 | 618,799,656.48 |
| Cashpaidasinvestment |
Netincreaseofloanagainstpledge
| Netincreaseofloanagainstpledge | ||
| Netcashreceivedfromsubsidiariesandotheroperationalunits | ||
| Othercashpaidforinvestmentactivities | 3,008,065,275.20 | 4,556,430,000.00 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 3,572,079,379.14 | 5,175,229,656.48 |
| Netcashflowgeneratedbyinvestment | -319,070,964.44 | -944,223,564.84 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Including:Cashreceivedasinvestmentfromminorshareholders | ||
| Cashreceivedasloans | 342,660,000.00 | 86,033,453.75 |
| Otherfinancing–relatedcashreceived | 203,775,154.17 | |
| Sub-totalofcashinflowfromfinancingactivities | 342,660,000.00 | 289,808,607.92 |
| Cashtorepaydebts | 536,552,100.76 | |
| Cashpaidasdividend,profit,orinterests | 3,511,622.58 | 43,473,617.45 |
| Including:Dividendandprofitpaidbysubsidiariestominorshareholders | ||
| Othercashpaidforfinancingactivities | 9,344,136.30 | 13,791,675.60 |
| Sub-totalofcashoutflowduetofinancingactivities | 12,855,758.88 | 593,817,393.81 |
| Netcashflowgeneratedbyfinancing | 329,804,241.12 | -304,008,785.89 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | -2,973,560.67 | 158,915.19 |
| V.Netincreaseofcashandcashequivalents | 9,690,648.77 | -864,927,647.04 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 268,646,588.18 | 1,133,574,235.22 |
| VI..Balanceofcashandcashequivalentsattheendof | 278,337,236.95 | 268,646,588.18 |
term
6.CashFlowStatementoftheParentCompany
InRMB
termItems
| Items | Year2020 | Year2019 |
| I.Cashflowsfromoperatingactivities | ||
| Cashreceivedfromsalesofgoodsorrendingofservices | 64,167,036.73 | 76,051,827.26 |
| Taxreturned | ||
| Othercashreceivedfrombusinessoperation | 6,524,378.62 | 16,144,244.57 |
| Sub-totalofcashinflow | 70,691,415.35 | 92,196,071.83 |
| Cashpaidforpurchasingofmerchandiseandservices | 4,462,365.49 | 5,479,277.51 |
| Cashpaidtostaffsorpaidforstaffs | 27,619,751.65 | 22,463,068.76 |
| Taxespaid | 34,788,061.46 | 20,712,126.49 |
| Othercashpaidforbusinessactivities | 8,944,859.88 | 25,827,850.33 |
| Sub-totalofcashoutflowfrombusinessactivities | 75,815,038.48 | 74,482,323.09 |
| Netcashgeneratedfrom/usedinoperatingactivities | -5,123,623.13 | 17,713,748.74 |
| II.Cashflowgeneratedbyinvesting | ||
| Cashreceivedfrominvestmentretrieving | 6,437,640.00 | 72,428,769.00 |
| Cashreceivedasinvestmentgains | 1,957,306.47 | 2,715,003.90 |
| Netcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 2,759,267.00 | 34,500.00 |
| Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits | ||
| Otherinvestment-relatedcashreceived | 1,623,459,188.57 | 1,448,303,833.93 |
| Sub-totalofcashinflowduetoinvestmentactivities | 1,634,613,402.04 | 1,523,482,106.83 |
Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets
| Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets | 2,528,077.97 | 10,991,096.71 |
| Cashpaidasinvestment | 3,555,968.96 | |
| Netcashreceivedfromsubsidiariesandotheroperationalunits | ||
| Othercashpaidforinvestmentactivities | 1,530,015,275.20 | 1,580,000,000.00 |
| Sub-totalofcashoutflowduetoinvestmentactivities | 1,536,099,322.13 | 1,590,991,096.71 |
| Netcashflowgeneratedbyinvestment | 98,514,079.91 | -67,508,989.88 |
| III.Cashflowgeneratedbyfinancing | ||
| Cashreceivedasinvestment | ||
| Cashreceivedasloans | ||
| Otherfinancing–relatedashreceived | 6,545,900.00 | 3,806,454.17 |
| Sub-totalofcashinflowfromfinancingactivities | 6,545,900.00 | 3,806,454.17 |
| Cashtorepaydebts | ||
| Cashpaidasdividend,profit,orinterests | 11,231.64 | 356,766.80 |
| Othercashpaidforfinancingactivities | 14,344,136.30 | 11,091,675.60 |
| Sub-totalofcashoutflowduetofinancingactivities | 14,355,367.94 | 11,448,442.40 |
| Netcashflowgeneratedbyfinancing | -7,809,467.94 | -7,641,988.23 |
| IV.Influenceofexchangeratealternationoncashandcashequivalents | ||
| V.Netincreaseofcashandcashequivalents | 85,580,988.84 | -57,437,229.37 |
| Add:balanceofcashandcashequivalentsatthebeginningofterm | 27,979,338.37 | 85,416,567.74 |
| VI..Balanceofcashandcashequivalentsattheendofterm | 113,560,327.21 | 27,979,338.37 |
7.ConsolidatedStatementonChangeinOwners’EquityAmountinthisperiod
InRMB
| Items | Year2020 | ||||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Sustainabledebt | Other | |||||||||||||
| I.Balanceattheendoflastyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| Add:Changeofaccountingpolicy | |||||||||||||||
| Correctingofpreviouserrors | |||||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 | ||||||
| III.Changedinthecurrentyear | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -3,131,850.89 | 4,357,728.75 | 37,604,626.47 | 38,470,030.03 | 6,229,649.41 | 44,699,679.44 | ||||
| （1）Totalcomprehensiveincome | 1,562,508.59 | 37,267,995.74 | 38,830,504.33 | 6,229,649.41 | 45,060,153.74 | ||||||||
| （II）Investmentordecreasingofcapitalbyowners | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | -360,474.30 | ||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | |||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity | |||||||||||||
| 4．Other | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | -360,474.30 | ||||||||
| （III）Profitallotment | 3,888,292.80 | -3,888,292.80 | |||||||||||
| 1.Providingofsurplusreserves | 3,888,292 | -3,888,29 |
| .80 | 2.80 | |||||
| 2.Providingofcommonriskprovisions | ||||||
| 3．Allotmenttotheowners(orshareholders) | ||||||
| 4．Other | ||||||
| (IV)Internaltransferringofowners’equity | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||
| 3．Makinguplossesbysurplusreserves. | ||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||
| 5．Othercomprehensiveincomecarry-over | -4,694,359.4 | 469,435.9 | 4,224,923 |
| retainedearnings | 8 | 5 | .53 | ||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | |||||||||||||
| IV.Balanceattheendofthisterm | 507,772,279.00 | 1,967,514,358.53 | 7,525,438.20 | 116,605,932.42 | 94,954,652.14 | 86,912,390.50 | 2,766,234,174.39 | 1,133,081,075.23 | 3,899,315,249.62 |
AmountinlastyearInRMB
| Items | Year2019 | ||||||||||||||
| Owner’sequityAttributabletotheParentCompany | Minorshareholders’equity | Totalofowners’equity | |||||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Commonriskprovision | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Sustainabledebt | Other | |||||||||||||
| I.Balanceattheendoflastyear | 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:Changeofaccounti | 170,899,5 | 3,975,550 | 35,779,95 | 210,655,078. | 210,655,078. | ||||||||||
| ngpolicy | 72.18 | .61 | 5.53 | 32 | 32 | ||||||||
| Correctingofpreviouserrors | |||||||||||||
| Mergerofentitiesundercommoncontrol | |||||||||||||
| Other | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 511,274,149.00 | 1,865,716,983.63 | 27,230,679.00 | 172,238,780.59 | 83,980,353.84 | -21,994,517.88 | 2,583,985,070.18 | 1,086,150,534.88 | 3,670,135,605.06 | ||||
| III.Changedinthecurrentyear | -1,935,720.00 | 109,205,264.40 | -11,091,675.60 | -52,500,997.28 | 6,616,569.55 | 71,302,281.91 | 143,779,074.18 | 40,700,890.94 | 184,479,965.12 | ||||
| （1）Totalcomprehensiveincome | 5,737,943.75 | 19,679,910.43 | 25,417,854.18 | -38,206,589.06 | -12,788,734.88 | ||||||||
| （II）Investmentordecreasingofcapitalbyowners | -1,935,720.00 | -9,155,955.60 | -11,091,675.60 | ||||||||||
| 1．OrdinarySharesinvestedbyshareholders | |||||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | |||||||||||||
| 3．Amountofsharespaidandaccountedasowners’equity |
| 4．Other | -1,935,720.00 | -9,155,955.60 | -11,091,675.60 | ||||||
| （III）Profitallotment | 6,616,569.55 | -6,616,569.55 | |||||||
| 1.Providingofsurplusreserves | 6,616,569.55 | -6,616,569.55 | |||||||
| 2.Providingofcommonriskprovisions | |||||||||
| 3．Allotmenttotheowners(orshareholders) | |||||||||
| 4．Other | |||||||||
| (IV)Internaltransferringofowners’equity | -58,238,941.03 | 58,238,941.03 | |||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | |||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | |||||||||
| 3．Makinguplossesbysurplusreserves. | |||||||||
| 4.Changeamountof |
| definedbenefitplansthatcarryforwardRetainedearnings | |||||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -58,238,941.03 | 58,238,941.03 | |||||||||||
| 6．Other | |||||||||||||
| (V).Specialreserves | |||||||||||||
| 1.Providedthisyear | |||||||||||||
| 2．Usedthisterm | |||||||||||||
| （VI）Other | 118,361,220.00 | 118,361,220.00 | 78,907,480.00 | 197,268,700.00 | |||||||||
| IV.Balanceattheendofthisterm | 509,338,429.00 | 1,974,922,248.03 | 16,139,003.40 | 119,737,783.31 | 90,596,923.39 | 49,307,764.03 | 2,727,764,144.36 | 1,126,851,425.82 | 3,854,615,570.18 |
8.Statementofchangeinowner’sEquityoftheParentCompanyAmountinthisperiodInRMB
| Items | Year2020 | |||||||||||
| Sharecapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceatthe | 509,338,42 | 1,589,869,4 | 16,139,0 | 110,764,03 | 90,596,9 | 637,234,47 | 2,921,664,3 | |||||
| endoflastyear | 9.00 | 99.36 | 03.40 | 7.74 | 23.39 | 5.15 | 61.24 | |||
| Add:Changeofaccountingpolicy | ||||||||||
| Correctingofpreviouserrors | ||||||||||
| Other | ||||||||||
| II.Balanceatthebeginningofcurrentyear | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 | |||
| III.Changedinthecurrentyear | -1,566,150.00 | -6,561,989.50 | -8,613,565.20 | -3,131,850.89 | 4,357,728.75 | 39,219,558.74 | 40,930,862.30 | |||
| （I）Totalcomprehensiveincome | 1,562,508.59 | 38,882,928.01 | 40,445,436.60 | |||||||
| (II)Investmentordecreasingofcapitalbyowners | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | ||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||
| 2．Holdersofotherequityinstrumentsinvestedcapital | ||||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||||
| 4．Other | -1,566,150.00 | -7,407,889.50 | -8,613,565.20 | -360,474.30 | ||||||
| （III）Profitallotment | 3,888,292.80 | -3,888,292.80 | ||||||||
| 1.Providingofsurplusreserves | 3,888,292.80 | -3,888,292.80 |
| 2．Allotmenttotheowners(orshareholders) | ||||||||||
| 3．Other | ||||||||||
| (IV)Internaltransferringofowners’equity | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -4,694,359.48 | 469,435.95 | 4,224,923.53 | |||||||
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | 845,900.00 | 845,900.00 | ||||||||
| IV.Balanceattheendofthisterm | 507,772,279.00 | 1,583,307,509.86 | 7,525,438.20 | 107,632,186.85 | 94,954,652.14 | 676,454,033.89 | 2,962,595,223.54 |
Amountinlastyear
InRMB
| Items | Year2019 | |||||||||||
| ShareCapital | OtherEquityinstrument | Capitalreserves | Less:Sharesinstock | OtherComprehensiveIncome | Specializedreserve | Surplusreserves | Retainedprofit | Other | Totalofowners’equity | |||
| Preferredstock | Sustainabledebt | Other | ||||||||||
| I.Balanceattheendoflastyear | 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:Changeofaccountingpolicy | 161,925,826.61 | 3,975,550.61 | 35,779,955.53 | 201,681,332.75 | ||||||||
| Correctingofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| II.Balanceatthebeginningofcurrentyear | 511,274,149.00 | 1,599,025,454.96 | 27,230,679.00 | 163,265,035.02 | 83,980,353.84 | 519,446,408.23 | 2,849,760,722.05 | |||||
| III.Changedinthecurrentyear | -1,935,720.00 | -9,155,955.60 | -11,091,675.60 | -52,500,997.28 | 6,616,569.55 | 117,788,066.92 | 71,903,639.19 | |||||
| （I）Totalcomprehensiveincome | 5,737,943.75 | 66,165,695.44 | 71,903,639.19 | |||||||||
| (II)Investmentordecreasingofcapitalbyowners | -1,935,720.00 | -9,155,955.60 | -11,091,675.60 | |||||||||
| 1．OrdinarySharesinvestedbyshareholders | ||||||||||||
| 2．Holdersofotherequityinstruments | ||||||||||||
| investedcapital | ||||||||
| 3.Amountofsharespaidandaccountedasowners’equity | ||||||||
| 4．Other | -1,935,720.00 | -9,155,955.60 | -11,091,675.60 | |||||
| （III）Profitallotment | 6,616,569.55 | -6,616,569.55 | ||||||
| 1.Providingofsurplusreserves | 6,616,569.55 | -6,616,569.55 | ||||||
| 2．Allotmenttotheowners(orshareholders) | ||||||||
| 3．Other | ||||||||
| (IV)Internaltransferringofowners’equity | -58,238,941.03 | 58,238,941.03 | ||||||
| 1.Capitalizingofcapitalreserves(ortocapitalshares) | ||||||||
| 2.Capitalizingofsurplusreserves(ortocapitalshares) | ||||||||
| 3．Makinguplossesbysurplusreserves. | ||||||||
| 4.ChangeamountofdefinedbenefitplansthatcarryforwardRetainedearnings | ||||||||
| 5．Othercomprehensiveincomecarry-overretainedearnings | -58,238,941.03 | 58,238,941.03 |
| 6．Other | ||||||||||
| (V)Specialreserves | ||||||||||
| 1.Providedthisyear | ||||||||||
| 2．Usedthisterm | ||||||||||
| （VI）Other | ||||||||||
| IV.Balanceattheendofthisterm | 509,338,429.00 | 1,589,869,499.36 | 16,139,003.40 | 110,764,037.74 | 90,596,923.39 | 637,234,475.15 | 2,921,664,361.24 |
III.BasicInformationoftheCompany
(1)CompanyProfile
ShenzhenTextile(Group)Co.,Ltd.(hereinafterreferredtoas"Company"or"theCompany")isajoint-stockcompanyregisteredinGuangdongProvincewitharegisteredcapitalofRMB511.274149millionandaunifiedsocialcreditcodeof91440300192173749Y.TheCompanyhaspubliclyissuedRMBcommonshares(Ashares)anddomesticlistedforeignshares(Bshares)tothepublicathomeandabroad,andlistedandtradedthem.TheCompanyisheadquarteredaddressare6/F,ShenfangBuilding,No.3HuaqiangRoad.North,FutianDistrict,Shenzhen.ThecompanywaspreviouslytheShenzhenTextileIndustryCompany,onApril13,1994,approvedbytheLetter(1994)No.15issuedbyShenzhenMunicipalPeople'sGovernment,theCompanywasrestructuredandnamedasShenzhenTextile(Group)Co.,Ltd.，AsofDecember31,2020,theCompanyhasissuedatotalof507,772,279.00shares.
TheCompanyhasestablishedthecorporategovernancestructureofGeneralMeetingofShareholders,BoardofDirectorsandBoardofSupervisors,andcurrentlyhastheBoardOffice,Office,StrategicDevelopmentDepartment,OperationandManagementDepartment,FinanceDepartment,AuditDepartment,HumanResourcesDepartmentandotherdepartments.
TheCompanyismainlyengagedinhigh-techindustryfocusingonR&D,productionandmarketingofpolarizersforliquidcrystaldisplay,managementofpropertiesinbustlingbusinessdistrictsofShenzhenandreservedhigh-classtextileandgarmentbusiness.
Thefinancialstatementshavebeenauthorizedforissuanceofthe2nmeetingofthe8thBoardofDirectorsoftheGrouponMarch10,2021.
(2)Scopeofconsolidatedfinancialstatements
AsofDecember31,2020,Atotalof8subsidiariesoftheCompanyareincludedinthescopeofconsolidation.Fordetails,pleaserefertoNoteVII"RightsandInterestsinOtherSubjects".TheconsolidationscopeoftheCompanythisyearhasincreasedbyonecomparedwiththepreviousyear.Fordetails,pleaserefertoNoteVI"ChangeofConsolidationScope".
IV.Basicforthepreparationoffinancialstatements
ThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinanceanditsapplicationguidelines,interpretationsandotherrelevantprovisions(collectivelyreferredtoasthe"AccountingStandardsforBusinessEnterprises").In
addition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRulesNo.15fortheInformationDisclosureandCompilationofCompaniesOfferingSecuritiesPublicIssuance-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.Thefinancialstatementsarepresentedonthebasisofgoingconcern.TheaccountingoftheCompanyisbasedonaccrualbasis.Exceptforsomefinancialinstruments,thefinancialstatementsarebasedonhistoricalcosts.Incaseofassetimpairment,impairmentprovisionshallbemadeinaccordancewithrelevantregulations.
VII.Importantaccountingpoliciesandestimations
Accordingtoitsownproductionandoperationcharacteristics,theCompanydeterminesthepoliciesofdepreciationoffixedassets,amortizationofintangibleassetsandrevenuerecognition.SeeNoteIII.16,III.19andIII.26forspecificaccountingpolicies.
1.StatementoncomplyingwithcorporateaccountingstandardsThisfinancialstatementconformstotherequirementsofAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflectsthecombinationandfinancialstatusoftheCompanyonDecember31,2020,aswellasthecombinationandoperatingresultsandcashflowoftheCompanyin2020.
2.FiscalYearTheCompanyadoptstheGregoriancalendaryearcommencingonJanuary1andendingonDecember31asthefiscalyear.
3.OperatingcycleTheoperatingcycleoftheCompanyis12months.
4.Accountingstandardmoney
TheCompanyanditsdomesticsubsidiariesuseRMBastheirbookkeepingbasecurrency.TheoverseassubsidiariesoftheCompanydetermineRMBastheirbookkeepingbasecurrencyaccordingtothecurrencyinthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinpreparingthefinancialstatementsisRMB.
5.Accountingprocessmethodofenterpriseconsolidationundersameanddifferentcontrolling.
（1）Enterprisemergerundersamecontrol
Forbusinesscombinationunderthesamecontrol,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyduringthecombinationshallbemeasuredaccordingtothebookvalueofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies.Thedifferencebetweenthebookvalueofthecombinationconsiderationandthebookvalueofthenetassetsobtainedinthecombinationadjuststhecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.
Businesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactions
Inindividualfinancialstatements,theshareofthebookvalueofthenetassetsofthecombinedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyshallbetakenastheinitialinvestmentcostoftheinvestmentonthecombinationdaycalculatedbytheshareholdingratioonthecombinationday;Adjustthecapitalreserveforthedifferencebetweentheinitialinvestmentcostandthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombination.Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.
Intheconsolidatedfinancialstatements,theassetsandliabilitiesofthecombinedpartyacquiredbythemergingpartyinthecombinationshallbemeasuredaccordingtothebookvalueintheconsolidated
financialstatementsoftheultimatecontrollingpartyonthecombinationdate,exceptfortheadjustmentduetodifferentaccountingpolicies;Thedifferencebetweenthebookvalueoftheinvestmentheldbeforethecombinationplusthebookvalueoftheconsiderationpaidonthenewdayofthecombinationandthebookvalueofthenetassetsobtainedduringthecombinationwillbeadjustedforcapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.Forthelong-termequityinvestmentheldbythemergingpartybeforeobtainingthecontrolrightofthecombinedparty,therelevantprofitsandlosses,othercomprehensiveincomeandotherchangesinowner'sequityhavebeenrecognizedfromthedateofobtainingtheoriginalequityandthedatewhenthemergingpartyandthecombinedpartyareunderthesamefinalcontroltothecombinationdate,andtheinitialretainedearningsorcurrentprofitsandlossesduringthecomparativereportperiodshallbeoffsetrespectively.
(2)BusinesscombinationinvolvingentitiesnotundercommoncontrolForbusinesscombinationnotunderthesamecontrol,thecombinationcostreferstotheassetspaid,liabilitiesincurredorassumed,andfairvalueoftheissuedequitysecuritiesinordertogaincontrolovertheacquireeontheacquisitiondate.Ontheacquisitiondate,theacquiredassets,liabilitiesandcontingentliabilitiesoftheacquireearerecognizedatfairvalue.
Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredinthecombinationisrecognizedasgoodwill,andtheaccumulatedimpairmentprovisionisdeductedbycostforsubsequentmeasurement;Thedifferencebetweenthecombinationcostandthefairvalueshareofidentifiablenetassetsacquiredbytheacquireeinthecombinationshallberecordedintothecurrentprofitsandlossesafterreview.
Businesscombinationunderthesamecontrolshallbeachievedstepbystepthroughmultipletransactions
Inindividualfinancialstatements,thesumofthebookvalueoftheequityinvestmentheldbytheacquireebeforetheacquisitiondateandthenewinvestmentcostontheacquisitiondateistakenastheinitialinvestmentcostoftheinvestment.Othercomprehensiveincomerecognizedbytheequityinvestmentheldbeforetheacquisitiondateduetoaccountingbytheequitymethodisnottreatedontheacquisitiondate,andaccountingtreatmentiscarriedoutonthesamebasisasthatoftheinvestee'sdirectdisposalofrelatedassetsorliabilities;Theowner'sequityrecognizedduetothechangeofowner'sequityoftheinvesteeexceptnetprofitandloss,othercomprehensiveincomeandprofitdistributionshallbetransferredtothecurrentprofitandlossduringthedisposalperiodwhentheinvestmentisdisposed.Iftheequityinvestmentheldbeforetheacquisitiondateismeasuredbyfairvalue,theaccumulatedchangesinfairvalueoriginallyincludedinothercomprehensiveincomewillbetransferredtothecurrentprofitsandlosseswhenaccountingbycostmethod.
Intheconsolidatedfinancialstatements,theconsolidatedcostisthesumoftheconsiderationpaidontheacquisitiondateandthefairvalueoftheequityoftheacquireeheldbeforetheacquisitiondateontheacquisitiondate.Theequityoftheacquireeheldbeforetheacquisitiondateshallbere-measuredaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentincome;Equityoftheacquireeheldbeforetheacquisitiondateinvolvesothercomprehensiveincome,andotherchangesinowner'sequityareconvertedintocurrentincomeontheacquisitiondate,exceptforothercomprehensiveincomearisingfromtheremeasurementofnetliabilitiesorchangesinnetassetsofthesetincomeplanbytheinvestee.
(3)Treatmentoftransactioncostsinbusinesscombination
Intermediaryexpensessuchasauditing,legalservices,evaluationandconsultation,andotherrelatedmanagementexpensesincurredforbusinesscombinationareincludedinthecurrentprofitsandlosseswhentheyoccur.Transactioncostsofequitysecuritiesordebtsecuritiesissuedascombinationconsiderationareincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.6Compilationmethodofconsolidatedfinancialstatements
(1)Thescopeofconsolidation
Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipating
intherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).Theconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlreferstothatthecompanyhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.SubsidiariesrefertosubjectscontrolledbytheCompany(includingenterprises,divisiblepartsofinvestee,structuredsubjects,etc.).
(2)CompilationmethodofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andarepreparedbytheCompanyaccordingtootherrelevantinformation.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingperiodrequirementsoftheCompanyanditssubsidiariesareconsistent,andmajortransactionsandcurrentbalancesbetweencompaniesareoffset.Duringthereportingperiod,thesubsidiariesandbusinessesincreasedduetothebusinesscombinationunderthesamecontrolshallbedeemedtobeincludedintheconsolidationscopeoftheCompanyfromthedatewhentheyarecontrolledbytheultimatecontroller,andtheiroperatingresultsandcashflowsfromthedatewhentheyarecontrolledbytheultimatecontrollershallbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowstatementrespectively.Duringthereportingperiod,theincome,expensesandprofitsofsubsidiariesandbusinessesincreasedfromtheacquisitiondatetotheendofthereportingperiodduetobusinesscombinationnotunderthesamecontrolduringthereportingperiodareincludedintheconsolidatedincomestatement,andtheircashflowsareincludedintheconsolidatedcashflowstatement.Thepartofshareholders'equityofsubsidiariesthatisnotownedbytheCompanyislistedseparatelyasminorityshareholders'equityintheconsolidatedbalancesheet;Theshareofminorityshareholders'equityinthecurrentnetprofitandlossofsubsidiariesislistedas"minorityshareholders'profitandloss"underthenetprofititemintheconsolidatedincomestatement.Ifthelossofsubsidiarysharedbyminorityshareholdersexceedstheshareenjoyedbyminorityshareholdersintheinitialowner'sequityofsuchsubsidiary,thebalancestilloffsetsminorityshareholders'equity.
(3)Acquisitionofminorityshareholders'equityofsubsidiariesThecapitalreserveintheconsolidatedbalancesheetshallbeadjustedforthedifferencebetweenthenewlyacquiredlong-termequityinvestmentcostduetotheacquisitionofminoritysharesandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdate,andthedifferencebetweenthedisposalpriceobtainedfrompartialdisposalofequityinvestmentinsubsidiarieswithoutlosingcontrolandtheshareofnetassetscontinuouslycalculatedbysubsidiariesfromtheacquisitiondateorcombinationdatecorrespondingtothedisposaloflong-termequityinvestment.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
(4)TreatmentoflosingcontroloversubsidiariesIfthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityshallbere-measuredaccordingtoitsfairvalueonthedateoflossofcontrol;Thesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueofremainingequity,minusthesumoftheshareoftheoriginalsubsidiary'sbookvalueofnetassetscalculatedcontinuouslyfromtheacquisitiondateandgoodwillcalculatedaccordingtotheoriginalshareholdingratio,andthedifferenceformedisincludedintheinvestmentincomeofthecurrentperiodoflossofcontrol.
Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestmentwillbetransferredtothecurrentprofitsandlosseswhenthecontrolrightislost,exceptforothercomprehensiveincomegeneratedbytheinvestee'sremeasurementofthenetliabilitiesorchangesinnetassetsofthesetincomeplan.
7.JointventurearrangementsclassificationandCo-operationaccountingtreatment
Jointventurearrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.ThejointventurearrangementoftheCompanyisdividedintojointoperationandjointventure.
(1)Jointoperation
JointoperationreferstothejointventurearrangementinwhichtheCompanyisentitledtotheassetsrelatedtothearrangementandbearstheliabilitiesrelatedtothearrangement.
TheCompanyrecognizesthefollowingitemsrelatedtotheshareofinterestsinjointoperation,andcarriesoutaccountingtreatmentinaccordancewiththerelevantaccountingstandardsforbusinessenterprises:
A.Recognizeassetsheldseparatelyandassetsheldjointlyaccordingtotheirshares;
B.Recognizetheliabilitiesundertakenseparately,andrecognizetheliabilitiesjointlyundertakenaccordingtotheirshares;
C.Recognizetheincomegeneratedfromthesaleofitsshareofjointoperatingoutput;
D.Recognizetheincomegeneratedbythesaleofoutputfromjointoperationaccordingtotheirshares;
E.Recognizetheexpensesincurredseparately,andrecognizetheexpensesincurredinjointoperationaccordingtotheirshares.
(2)Jointventure
AjointventurereferstoajointventurearrangementinwhichtheCompanyonlyhasrightstothenetassetsofthearrangement.
TheCompanyshallcarryoutaccountingtreatmentontheinvestmentofthejointventureinaccordancewiththeprovisionsonaccountingoflong-termequityinvestmentbytheequitymethod.
8.RecognitionStandardofCash&CashEquivalents
Cashreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanywithshortterm,strongliquidity,easyconversionintoknowncashandlittleriskofvaluechange.
9.Foreigncurrencytransaction
IncaseofforeigncurrencybusinessoftheCompany,theexchangeratedeterminedbyasystematicandreasonablemethodwhichissimilartothespotexchangerateonthetransactiondateshallbeusedtoconvertitintothebookkeepingbasecurrencyamount.
Balancesheetdate:foreigncurrencymonetaryitemsshallbeconvertedatthespotexchangerateonthebalancesheetdate.Exchangedifferencesarisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateareincludedinthecurrentprofitsandlosses;Forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thespotexchangerateonthetransactiondateisstilladopted;Foreigncurrencynon-monetaryitemsmeasuredatfairvalueareconvertedatthespotexchangerateonthefairvaluedeterminationdate,andthedifferencebetweentheconvertedbookkeepingbasecurrencyamountandtheoriginalbookkeepingbasecurrencyamountisincludedinthecurrentprofitsandlosses.
10.Financialinstruments
Financialinstrumentsrefertocontractsthatformfinancialassetsofonepartyandfinancialliabilitiesorequityinstrumentsofotherparties.
(1)Recognitionandderecognitionoffinancialinstruments
WhentheCompanybecomesapartytoafinancialinstrumentcontract,afinancialassetorfinancialliabilityisrecognized.
Financialassetsthatmeetoneofthefollowingconditionsshallbederecognized:
①Terminationofthecontractualrighttoreceivecashflowfromthefinancialasset;
②Thefinancialassethasbeentransferredandthefollowingconditionsforderecognitionoffinancialassettransferaremet.Ifallorpartofthecurrentobligationsofafinancialliabilityhavebeendischarged,thefinancialliabilityorpartofitshallbederecognized.IftheCompany(debtor)signsanagreementwiththecreditortoreplacetheexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromthoseoftheexistingfinancialliabilities,theexistingfinancialliabilitiesshallbederecognizedandthenewfinancialliabilitiesshallberecognizedatthesametime.
Whentradingthefinancialassetsinaconventionalway,accountingrecognitionandderecognitionshallbecarriedoutaccordingtothetradingday.
(2)Classificationandmeasurementoffinancialassets
Accordingtothebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsintothefollowingthreecategories:
financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.
Financialassetsmeasuredatamortizedcost
TheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatamortizedcost:
TheCompany'sbusinessmodelofmanagingsuchfinancialassetsistocollectcontractcashflowasthegoal;
Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.
Afterinitialrecognition,suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestratemethod.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitsandlosseswhenderecognition,amortizationaccordingtotheeffectiveinterestratemethod,orimpairmentrecognition.
Financialassetsmeasuredatfairvalueandchangesincludedinothercomprehensiveincome
TheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome
Thecompany'sbusinessmodelofmanagingthefinancialassetsaimsatbothcollectingcontractcashflowandsellingthefinancialassets.
Accordingtothecontracttermsofthefinancialasset,thecashflowgeneratedonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.
Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestratemethodareincludedinthecurrentprofitsandlosses,whileothergainsorlossesareincludedinothercomprehensiveincome.Uponterminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomeshallbetransferredoutofothercomprehensiveincomeandincludedincurrentprofitsandlosses.
Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses
Exceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,theCompanyirrevocablydesignatedsomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvaluewithchangesincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.
Afterinitialrecognition,thefinancialassetsaresubsequentlymeasuredatfairvalue,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedinthecurrentprofitsandlosses,unlessthefinancialassetsarepartofthehedgingrelationship.
However,fornon-tradingequityinstrumentinvestments,theCompanycanirrevocablydesignatethemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeuponinitialrecognition.Thedesignationismadeonthebasisofasingleinvestment,andtherelevantinvestmentconformstothedefinitionofequityinstrumentsfromtheperspectiveoftheissuer.
Afterinitialrecognition,thefairvalueofsuchfinancialassetsissubsequentlymeasured.Dividendincomethatmeetstherequirementsisincludedinprofitorloss,andothergainsorlossesandchangesinfairvalueareincludedinothercomprehensiveincome.Uponterminationofrecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomeshallbetransferredoutofothercomprehensiveincomeandincludedinretainedincome.
ThebusinessmodelofmanagingfinancialassetreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowoffinancialassetsmanagedbytheCompanycomesfromcontractcashflow,saleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelofmanagingfinancialassetsbasedonobjectivefactsandspecificbusinessobjectivesofmanagingfinancialassetsdecidedbykeymanagementpersonnel.
TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbyrelatedfinancialassetsonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.Where,theprincipalreferstothefairvalueoffinancialassetsatinitialrecognition;Interestincludesconsiderationforthetimevalueofmoney,creditriskrelatedtotheunpaidprincipalamountinaspecificperiod,andotherbasicborrowingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontractclausesthatmaycausechangesinthetimedistributionoramountofcashflowoffinancialassetscontractstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractcashflowcharacteristics.
OnlywhentheCompanychangesitsbusinessmodelformanagingfinancialassets,allaffectedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthebusinessmodelchanges,otherwise,financialassetsshallnotbereclassifiedafterinitialrecognition.
Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalue,whosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses;Forothertypesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.AccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponentsareinitiallyrecognizedbytheCompanyinaccordancewiththeamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceive.
(3)Classificationandmeasurementoffinancialliabilities
Atinitialrecognition,thefinancialliabilitiesoftheCompanyareclassifiedinto:financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,relevanttransactioncostsareincludedintheirinitialrecognitionamount.
Financialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses
Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesinclude
transactionalfinancialliabilitiesandfinancialliabilitiesdesignatedatfairvalueatinitialrecognitionwithchangesincludedincurrentprofitsandlosses.Suchfinancialliabilitiesaresubsequentlymeasuredaccordingtofairvalue,andthegainsorlossescausedbychangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesareincludedincurrentprofitsandlosses.
FinancialliabilitiesmeasuredinamortizedcostOtherfinancialliabilitiesaresubsequentlymeasuredaccordingtotheamortizedcostbytheeffectiveinterestratemethod,andthegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.
DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Contractobligationtodelivercashorotherfinancialassetstootherparties.
②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentialunfavorableconditions.
③Non-derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,forwhichtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothiscontract.
④Derivativecontractsthatneedtobesettledorcanbesettledbytheenterprise'sownequityinstrumentsinthefuture,exceptforderivativecontractsthatexchangeafixedamountofitsownequityinstrumentsforafixedamountofcashorotherfinancialassets.
Equityinstrumentsrefertocontractsthatcanproveownershipofanenterprise'sresidualequityinassetsafterdeductingallliabilities.
IftheCompanycan'tunconditionallyavoiddeliveringcashorotherfinancialassetstofulfillacontractualobligation,thecontractualobligationmeetsthedefinitionoffinancialliabilities.
IfafinancialinstrumentneedstobesettledorcanbesettledbytheCompany'sownequityinstrument,itshallbeconsideredwhetheritsownequityinstrumentusedtosettletheinstrumentisasubstituteforcashorotherfinancialassets,oritistoenabletheholderofsuchinstrumenttobeentitledtotheremainingequityintheassetsafterallliabilitiesaredeductedbytheissuer.Intheformercase,theinstrumentisthefinancialliabilityoftheCompany;Inthelattercase,theinstrumentistheequityinstrumentoftheCompany.
(4)Derivativefinancialinstrumentsandembeddedderivativeinstruments
Initially,itismeasuredatthefairvalueonthedaywhenthederivativetransactioncontractissigned,andthenmeasuredatitsfairvalue.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareregardedasanliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotmeettherequirementsofhedgeaccountingaredirectlyincludedinthecurrentprofitsandlosses.
Formixedinstrumentsincludingembeddedderivative,ifthemaincontractisfinancialassets,therelevantprovisionsoffinancialassetclassificationshallapplytothemixedinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthemixedinstrumentisnotmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlossesforaccountingtreatment,theembeddedderivativeisnotcloselyrelatedtothemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivative,andiftheindependentinstrumentmeetsthedefinitionofderivative,theembeddedderivativeissplitfromthemixedinstrumentandtreatedasaseparatederivativefinancialinstrument.Iftheembeddedderivativecannotbeseparatelymeasuredatthetimeofacquisitionoronthesubsequentbalancesheetdate,themixedinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvaluewithchangesincludedinthecurrentprofitsandlosses.
(5)Fairvalueoffinancialinstruments
SeeNoteIII.11forthedeterminationmethodofthefairvalueoffinancialassetsandfinancialliabilities.
(6)Impairmentoffinancialassets
Basedontheexpectedcreditloss,theCompanywillcarryoutimpairmentaccountingtreatmentonthefollowingitemsandrecognizethelossreserve:
①Financialassetsmeasuredatamortizedcost;
②Receivablesanddebtinvestmentsmeasuredatfairvalueandincludedinothercomprehensiveincome;
③Leasereceivables;
④Financialguaranteecontracts(exceptthosewhicharemeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,inwhichthetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,orthoseformedbycontinuingtoinvolvethetransferredfinancialassets).
Measurementofexpectedcreditloss
Expectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenthecashflowofallcontractsdiscountedaccordingtotheoriginalrealinterestrateandtheexpectedcashflowofallcontractsreceivableaccordingtothecontract,thatis,thepresentvalueofallcashshortages.
TheCompanytakesintoaccountreasonableandreliableinformationonhistoricalevents,currentsituationandfutureeconomicsituationforecasts,andusestheriskofdefaultastheweighttocalculatetheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceivedtorecognizetheexpectedcreditloss.
TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;Ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration;Ifafinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossoftheinstrumentthroughouttheduration.
Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.
Theexpectedcreditlossinthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsinthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythefinancialinstrumentdefaulteventthatmayoccurwithin12monthsafterthebalancesheetdate(orwithintheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months),whichisapartoftheexpectedcreditlossinthewholeduration.
Whenmeasuringtheexpectedcreditloss,thelongestperiodthattheCompanyneedstoconsideristhelongestcontractperiodduringwhichtheenterpriseissubjecttocreditrisk(includingtheoptiontorenewthecontract).
Forfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk,theCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheactualinterestrate.Forfinancialinstrumentsinthethirdstage,theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheactualinterestrate.
Fornotesreceivableandaccountsreceivable,regardlessofwhetherthereissignificantfinancing
component,theCompanyalwaysmeasuresthelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanydividesthenotesreceivableandaccountsreceivableintoportfoliosaccordingtothecreditriskcharacteristics,calculatestheexpectedcreditlossonthebasisofthecombinations,anddeterminesthecombinationonthefollowingbasis:
A.Notesreceivable
Notesreceivableportfolio1:bankacceptancebillNotesreceivableportfolio2:commercialacceptancebillB.AccountsreceivableAccountsreceivableportfolio1:polarizersalesreceivableAccountsreceivableportfolio2:textileandgarmentsalesreceivableAccountsreceivableportfolio3:operatingfundsreceivablefromself-ownpropertyAccountsreceivableportfolio4:otherreceivables
Fornotesreceivabledividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperience,andcalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateofthewholedurationbasedonthecurrentsituationandforecaststhefutureeconomicsituation.Foraccountsreceivabledividedintocombinations,theCompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationwiththeforecastoffutureeconomicsituation,compilesacomparisontableofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateforthewholeduration,andcalculatestheexpectedcreditloss.
Otherreceivables
TheCompanyclassifiesotherreceivablesintoseveralcombinationsaccordingtothecreditriskcharacteristics,andcalculatestheexpectedcreditlossesbasedontheportfolios.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio:agingportfolio
Forotherreceivablesclassifiedasportfolios,theCompanycalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrateinthenext12monthsorthewholeduration.
Debtinvestmentandotherdebtinvestment
Forcreditor'srightsinvestmentandothercreditor'srightsinvestment,theCompanycalculatestheexpectedcreditlossaccordingtothenatureoftheinvestment,thecounterpartyandvarioustypesofriskexposureandbasedontheexpectedcreditlossrateinthenext12monthsorthewholeduration.
Evaluationofsignificantincreaseincreditrisk
Bycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate,theCompanydeterminestherelativechangeofdefaultriskoffinancialinstrumentsintheexpectedduration,andevaluateswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.
Whendeterminingwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition,thecompanyconsiderstoobtainreasonableandreliableinformationwithoutunnecessaryextracostsorefforts,includingforward-lookinginformation.InformationconsideredbytheCompanyincludes:
?Thedebtorfailstopaytheprincipalandinterestaccordingtotheexpirationdateofthecontract;?Seriousdeteriorationofexternalorinternalcreditrating(ifany)offinancialinstrumentsthathas
occurredorisexpected;
?Seriousdeteriorationofthedebtor'soperatingresultsthathasoccurredorisexpected;?Changesinexistingorexpectedtechnology,market,economicorlegalenvironment,andsignificantadverseeffectsonthedebtor'srepaymentabilityoftheCompany.Accordingtothenatureoffinancialinstruments,theCompanyassesseswhethercreditriskshaveincreasedsignificantlyonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Whenevaluatingonthebasisoffinancialinstrumentportfolio,theCompanycanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskrating.FinancialassetswithcreditimpairmentOnthebalancesheetdate,theCompanyevaluateswhetherthefinancialassetsmeasuredatamortizedcostandthecreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomehavesufferedcreditimpairment.Whenoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetbecomesafinancialassetwithcreditimpairment.Evidenceofcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:
?Theissuerordebtorhasmajorfinancialdifficulties;?Thedebtorviolatesthecontract,suchasdefaultoroverduepaymentofinterestorprincipal;?TheCompanygivesconcessionsthatthedebtorwillnotmakeunderanyothercircumstancesduetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties;?Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;?Thefinancialdifficultiesoftheissuerordebtorcausetheactivemarketofthefinancialassetstodisappear.PresentationofexpectedcreditlossprovisionInordertoreflectthechangeofcreditriskoffinancialinstrumentsafterinitialrecognition,theCompanyre-measurestheexpectedcreditlossoneachbalancesheetdate,andtheresultingincreaseorreversalamountoflossreserveshallbeincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Forfinancialassetsmeasuredinamortizedcost,thelossreserveshallbeoffsetagainstthebookvalueofthefinancialassetslistedinthebalancesheet;Forcreditor'srightsinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincome,whichdoesnotoffsetthebookvalueofthefinancialasset.Cancelafterverification
IftheCompanynolongerreasonablyexpectsthecontractcashflowoffinancialassetstobefullyorpartiallyrecovered,itwilldirectlywritedownthebookbalanceofthefinancialassets.Thiswrite-downconstitutesthederecognitionofrelatedfinancialassets.ItusuallyhappenswhentheCompanydeterminesthatthedebtorhasnoassetsorincomesourcestogenerateenoughcashflowtorepaytheamounttobewrittendown.However,accordingtotheCompany'sproceduresforrecoveringthedueamount,thewritten-downfinancialassetsmaystillbeaffectedbytheimplementationactivities.
Ifthewritten-downfinancialassetsarerecoveredlater,theywillbeincludedinprofitsandlossesofthecurrentrecoveryperiodasthereversalofimpairmentlosses.
(7)Transferoffinancialassets
Transferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialassets.
Ifthecompanyhastransferredalmostallrisksandrewardsintheownershipofthefinancialassettothetransferee,therecognitionofthefinancialassetshallbeterminated;Ifalmostallrisksandrewardsontheownershipofafinancialassetareretained,thefinancialassetshallnotbederecognized.
IftheCompanyhasneithertransferrednorretainedalmostallrisksandrewardsintheownershipoffinancialassets,itshallbedealtwithasfollows:ifthecontrolofthefinancialassetsisabandoned,thefinancialassetsshallbederecognizedandtheresultingassetsandliabilitiesshallberecognized;Ifthecontrolofthefinancialassetsisnotabandoned,therelevantfinancialassetsshallberecognizedaccording
totheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsetoffinancialassetsandfinancialliabilitiesWhentheCompanyhasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilities,whichcanbeenforcedatpresent,andtheCompanyplanstosettlebynetamountoratthesametimerealizesuchfinancialassetsandpayoffsuchfinancialliabilities,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetwiththeamountafteroffset.Inaddition,financialassetsandfinancialliabilitiesarelistedseparatelyinthebalancesheetandwillnotbeoffsetagainsteachother.
11.Fairvaluemeasurement
Fairvaluereferstothepricethatamarketparticipantmustpaytosellortransferaliabilityinanorderlytransactionthatoccursonthemeasurementdate.
TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;Ifthereisnomajormarket,theCompanyassumesthatthetransactionwillbeconductedinthemostfavorablemarketofrelatedassetsorliabilities.Themainmarket(orthemostfavorablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementday.TheCompanyadoptstheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetsorliabilities.
Iftherearefinancialassetsorfinancialliabilitiesinanactivemarket,thefairvalueofthefinancialassetsorfinancialliabilitiesshallbedeterminedbythequotationintheactivemarketbytheCompany.Forfinancialinstrumentswithactivemarket,theCompanyadoptsvaluationtechnologytodeterminetheirfairvalues.
Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstoapplytheassetsforthebestpurposetogenerateeconomicbenefitsortheabilitytoselltheassetstoothermarketparticipantsforthebestpurposetogenerateeconomicbenefitsshallbeconsidered.
TheCompanyadoptsthevaluationtechnologywhichisapplicableinthecurrentsituationandsupportedbysufficientavailabledataandotherinformation,andgivesprioritytotherelevantobservableinputvalues,andonlyusestheunobservableinputvalueswhentheobservableinputvaluesareunavailableorimpractical.
Forassetsandliabilitiesmeasuredordisclosedatfairvalueinfinancialstatements,thefairvaluelevelisdeterminedaccordingtothelowestlevelinputvaluewhichisofgreatsignificancetofairvaluemeasurementasawhole:Thefirst-levelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesthatcanbeobtainedonthemeasurementdateinanactivemarket;Thesecond-levelinputvalueisdirectlyorindirectlyobservableinputvalueofrelatedassetsorliabilitiesexceptthefirst-levelinputvalue;Thethird-levelinputvalueistheunobservableinputvalueofrelatedassetsorliabilities.
Oneachbalancesheetdate,theCompanyreassessestheassetsandliabilitiesrecognizedinthefinancialstatementsthatarecontinuouslymeasuredatfairvaluetodeterminewhetherthereisaconversionbetweenthefairvaluemeasurementlevels.
12.Inventory
(1)Investoriesclass
TheCompany'sinventoryincludesrawmaterials,in-processproducts,low-valueconsumables,packagingmaterials,inventorygoods,andissuedgoods.
(2)Pricingmethodofissuedinventory
TheCompany'sinventoryispricedattheactualcostwhenitisacquired.Theweightedaveragemethodisadoptedwhenrawmaterialsandinventorygoodsareissued.
(3)Determinationbasisofnetrealizablevalueofinventoryandaccrualmethodofinventorydepreciationreserve
Thenetrealizablevalueofinventoryistheestimatedsellingpriceofinventoryminustheestimatedcoststobeincurreduponcompletion,estimatedsalesexpensesandrelatedtaxes.Fordeterminationofthenetrealizablevalueofinventories,thesolidevidenceshallserveasthebasis,andthepurposeofholdinginventoriesandtheinfluenceofeventsafterthebalancesheetdateshallbeconsidered.Onthebalancesheetdate,iftheinventorycostishigherthanitsnetrealizablevalue,inventorydepreciationreserveshallbemade.TheCompanyusuallyaccruestheinventorydepreciationreserveaccordingtoindividualinventoryitems.Onthebalancesheetdate,iftheinfluencingfactorsofpreviousinventoryvaluewrittendownhavedisappeared,theinventorydepreciationreservewillbereturnedwithintheoriginallyaccruedamount.
(4)Inventorysystemofinventory
PerpetualinventorysystemisadoptedfortheCompany'sinventorysystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagingmaterials
Low-valueconsumablesandpackagingmaterialsoftheCompanyareamortizedbyone-timewrite-offmethod.
13.Heldforsaleanddiscontinuingoperation
(1)Classificationandmeasurementofnon-currentassetsordisposalgroupsheldforsale
Whenthebookvalueofanon-currentassetordisposalgroupisrecoveredbytheCompanymainlybysellingit(includingtheexchangeofnon-monetaryassetswithcommercialnation)ratherthancontinuouslyusingit,thenon-currentassetordisposalgroupisclassifiedasheldforsale.
Theabove-mentionednon-currentassetsdonotincludeinvestmentrealestatemeasuredbyfairvaluemodel,biologicalassetsmeasuredbynetamountoffairvalueminussellingexpenses,assetsformedbyemployeecompensation,financialassets,deferredincometaxassetsandrightsarisingfrominsurancecontracts.
Thedisposalgroupreferstoagroupofassetsdisposedoftogetherbysaleorothermeansinatransactionasawhole,andliabilitiesdirectlyrelatedtotheseassetstransferredinthetransaction.Undercertaincircumstances,thedisposalgroupincludesgoodwillobtainedinbusinesscombination,etc.
Meanwhile,non-currentassetsordisposalgroupsthatmeetthefollowingconditionsareclassifiedasheld-for-sale:accordingtothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thenon-currentassetsordisposalgroupscanbesoldimmediatelyunderthecurrentsituation;Thesaleisverylikelytohappen,thatis,aresolutionhasbeenmadeonasaleplanandacertainpurchasecommitmenthasbeenobtained,anditisexpectedthatthesalewillbecompletedwithinoneyear.Ifthecontroloversubsidiariesislostduetothesaleofinvestmentsinsubsidiaries,whetherornottheCompanyretainspartoftheequityinvestmentsafterthesale,whentheinvestmentinsubsidiariestobesoldmeetstheclassificationconditionsofholdingforsale,theinvestmentinsubsidiarieswillbeclassifiedasheld-for-saleasawholeinindividualfinancialstatements,andallassetsandliabilitiesofsubsidiarieswillbeclassifiedasheld-for-saleinconsolidatedfinancialstatements.
Whenthenon-currentassetsordisposalgroupsheldforsaleareinitiallymeasuredorre-measuredonthebalancesheetdate,thedifferencebetweenthebookvalueandthenetamountafterdeductionofthesalesexpensesfromthefairvalueisrecognizedastheassetimpairmentloss.Fortheamountofassetimpairmentlossrecognizedbythedisposalgroupheldforsale,thebookvalueofgoodwillinthedisposalgroupisoffsetfirst,andthenthebookvalueofnon-currentassetsinthedisposalgroupisoffsetproportionally.
Ifthenetamountofnon-currentassetsheldforsaleordisposalgroup'sfairvalueminussalesexpensesincreasesonthesubsequentbalancesheetdate,thepreviouslywritten-downamountwillberestoredandreversedwithintheamountofassetimpairmentlossrecognizedafterbeingclassifiedasheld-for-sale,andthereversedamountwillbeincludedinthecurrentprofitsandlosses.Thebookvalueofoffsetgoodwillshallnotbereversed.
Non-currentassetsheldforsaleandassetsindisposalgroupheldforsalearenotdepreciatedor
amortized;Interestandotherexpensesofliabilitiesindisposalgroupheldforsalecontinuetoberecognized.Allorpartoftheinvestmentsofassociatedenterprisesorjointventuresclassifiedasheldforsaleshallbeaccountedforbytheequitymethodforthoseclassifiedasheldforsale,whilethoseretained(notclassifiedasheldforsale)shallcontinuetobeaccountedforbytheequitymethod;WhentheCompanylosessignificantinfluenceontheassociatedenterprisesandjointventuresduetothesale,itshallstopusingtheequitymethod.Ifacertainnon-currentassetordisposalgroupisclassifiedasheld-for-sale,buttheclassificationconditionsofheld-for-salearenolongermet,theCompanywillstopclassifyingitasheld-for-saleandmeasureitaccordingtothelowerofthefollowingtwoamounts:
①Thebookvalueoftheassetordisposalgroupbeforeitisclassifiedasheld-for-sale,andtheamountadjustedaccordingtothedepreciation,amortizationorimpairmentthatshouldhavebeenrecognizedwithoutbeingclassifiedasheld-for-sale;
②Recoverableamount.
(2)Discontinuingoperation
DiscontinuingoperationreferstothecomponentsthathavebeendisposedofbytheCompanyorclassifiedasheld-for-salebytheCompanyandcanbedistinguishedseparately,whichmeetoneofthefollowingconditions:
①Suchcomponentrepresentsanindependentmainbusinessoraseparatemainbusinessarea.
②Suchcomponentispartofanassociatedplantodisposeanindependentmainbusinessoraseparatemainbusinessarea.
③Suchcomponentisasubsidiaryacquiredforresale.
(3)Presentation
Inthebalancesheet,theCompanypresentsthenon-currentassetsheldforsaleortheassetsinthedisposalgroupheldforsaleas"assetsheldforsale",andpresentstheliabilitiesinthedisposalgroupheldforsaleas"liabilitiesheldforsale".
TheCompanyseparatelypresentstheprofitandlossfromcontinuingoperationsandtheprofitandlossfromdiscontinuingoperationsintheincomestatement.Fornon-currentassetsordisposalgroupsheldforsalethatdonotmeetthedefinitionofdiscontinuingoperation,theimpairmentloss,reversalamountanddisposalprofitandlossarepresentedastheprofitandlossofcontinuingoperations.Operatingprofitandlossanddisposalprofitandlosssuchasimpairmentlossandreversalamountofdiscontinuingoperationarepresentedasdiscontinuingoperationprofitsandlosses.
Adisposalgroupthatintendstoterminateitsuseinsteadofsellingandmeetstheconditionsofrelevantcomponentsinthedefinitionofdiscontinuingoperationshallbepresentedasdiscontinuingoperationfromthedatewhenitceasestouse.
Forthediscontinuingoperationreportedinthecurrentperiod,inthecurrentfinancialstatements,theinformationoriginallypresentedastheprofitsandlossesofcontinuingoperationisre-presentedastheprofitsandlossesofdiscontinuingoperationinthecomparableaccountingperiod.Ifthediscontinuingoperationnolongermeetstheclassificationconditionsofholdingforsale,theinformationoriginallypresentedastheprofitsandlossesofdiscontinuingoperationinthecurrentfinancialstatementswillbepresentedagainastheprofitsandlossesofcontinuingoperationinthecomparableaccountingperiod.
14.Long-termequityinvestments
Long-termequityinvestmentincludesequityinvestmentinsubsidiaries,jointventuresandassociatedenterprises.IftheCompanycanexertsignificantinfluenceontheinvestee,itisanassociatedenterpriseoftheCompany.
(1)Determinationofinitialinvestmentcost
Long-termequityinvestmentformingbusinesscombination:thelong-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrolshallbetakenastheinvestmentcostaccordingtothebookvalueshareoftheowner'sequityofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthecombinationdate;Long-termequityinvestmentobtainedbybusinesscombinationnotunderthesamecontrolshallberegardedastheinvestmentcostoflong-termequityinvestmentaccordingtothecombinationcost.Forlong-termequityinvestmentobtainedbyothermeans:Forlong-termequityinvestmentobtainedbypaymentincash,theactualpurchasepriceistakenastheinitialinvestmentcost;Forlong-termequityinvestmentobtainedbyissuingequitysecurities,thefairvalueofissuingequitysecuritiesistakenastheinitialinvestmentcost.
(2)Subsequentmeasurementandprofitandlossrecognitionmethod
Investmentinsubsidiariesshallbeaccountedbycostmethod,unlesstheinvestmentmeetstheconditionsofholdingforsale;Investmentinassociatedenterprisesandjointventuresshallbeaccountedforbyequitymethod.
Forthelong-termequityinvestmentcalculatedbythecostmethod,exceptforthecashdividendsorprofitsthathavebeendeclaredbutnotyetissuedandthatincludedintheactualpaymentorconsideration,thecashdividendsorprofitsdeclaredanddistributedbytheinvesteearerecognizedasinvestmentincomeandincludedinthecurrentprofitsandlosses.
Iftheinitialinvestmentcostoflong-termequityinvestmentaccountedbyequitymethodisgreaterthanthefairvalueshareofidentifiablenetassetsoftheinvestee,theinvestmentcostoflong-termequityinvestmentshallnotbeadjusted;Iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteeatthetimeofinvestment,thebookvalueofthelong-termequityinvestmentshallbeadjusted,andthedifferenceshallbeincludedintheprofitandlossofthecurrentinvestmentperiod.
Incaseofaccountingbyequitymethod,theinvestmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofnetprofitsandlossesandothercomprehensiveincomerealizedbytheinvestee,andthebookvalueoflong-termequityinvestmentisadjustedatthesametime;Accordingtotheprofitorcashdividenddeclaredanddistributedbytheinvestee,theparttobeentitledtoshallbecalculated,andthebookvalueoflong-termequityinvestmentshallbereducedcorrespondingly;Theinvesteeadjuststhebookvalueoflong-termequityinvestmentforotherchangesinowner'sequityexceptnetprofitsandlosses,othercomprehensiveincomeandprofitdistributionandincludesthemincapitalreserve(othercapitalreserve).Whenrecognizingtheshareofthenetprofitandlossoftheinvestee,thefairvalueofidentifiableassetsoftheinvesteeatthetimeofinvestmentistakenasthebasis,andthenetprofitoftheinvesteeisrecognizedafteradjustmentaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.
Ifitcanexertsignificantinfluenceontheinvesteeduetoadditionalinvestmentorimplementjointcontrolbutdoesnotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplusthenewinvestmentcostshallbetakenastheinitialinvestmentcostcalculatedbytheequitymethodinstead.Thedifferencebetweenthefairvalueandbookvalueoftheoriginalequityontheconversiondate,aswellastheaccumulatedfairvaluechangesoriginallyincludedinothercomprehensiveincome,aretransferredtothecurrentprofitsandlossesaccountedforbytheequitymethod.
Ifthejointcontrolorsignificantinfluenceontheinvesteeislostduetothedisposalofsomeequityinvestments,theremainingequityafterdisposalshallbeaccountedforaccordingtoAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsonthedateoflossofjointcontrolorsignificantinfluence,andthedifferencebetweenfairvalueandbookvalueshallbeincludedinthecurrentprofitsandlosses.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheadoptionoftheequitymethodshallbeaccountedforonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvesteewhentheequitymethodisterminated;Changesinotherowners'equityrelatedtotheoriginalequityinvestmentaretransferredintocurrentprofitsandlosses.
Ifthecontrolovertheinvesteeislostduetothedisposalofpartofequityinvestment,andtheremainingequityafterdisposalcanjointlycontrolorexertsignificantinfluenceontheinvestee,itshallbe
accountedforaccordingtotheequitymethodinstead,andtheremainingequityshallberegardedasbeingadjustedbytheequitymethodwhenitisacquired;Iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotherelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolshallbeincludedinthecurrentprofitsandlosses.
IftheCompany'sshareholdingratiodecreasesduetocapitalincreaseofotherinvestors,causinglossofcontrol,butitcanexercisejointcontrolorexertsignificantinfluenceontheinvestee,theshareofnetassetsincreasedbytheinvesteeduetocapitalincreaseandshareexpansionshallberecognizedaccordingtothenewshareholdingratio,andthedifferencebetweentheoriginalbookvalueoflong-termequityinvestmentcorrespondingtothedecreasedshareholdingratioshallbeincludedinthecurrentprofitsandlosses;Then,accordingtothenewshareholdingratio,itisregardedasbeingadjustedbytheequitymethodwhentheinvestmentisobtained.
ForunrealizedinternaltransactiongainsandlossesbetweentheCompanyanditsassociatedenterprisesandjointventures,theportionattributabletotheCompanyshallbecalculatedaccordingtotheshareholdingratio,andinvestmentgainsandlossesshallberecognizedonthebasisofoffset.However,iftheunrealizedinternaltransactionlossesbetweentheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassets,theywillnotbeoffset.
(3)Basisfordeterminationofjointcontrolandsignificantinfluenceontheinvestee
Jointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andtherelevantactivitiesofsucharrangementmustbeunanimouslyagreedbytheparticipantswhosharethecontrolrightsbeforeanydecisionismade.Whenjudgingwhetherthereiscommoncontrol,firstly,judgewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondly,judgewhetherthedecision-makingofactivitiesrelatedtothearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.Ifallparticipantsoragroupofparticipantsmustactinconcerttodecidetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoragroupofparticipantscollectivelycontrolthearrangement;Iftwoormoreparticipantscancollectivelycontrolanarrangement,itdoesnotconstitutejointcontrol.Whenjudgingwhetheritisjointcontrol,theprotectiverightsentitledtoarenotconsidered.
Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestee,theinfluenceofthevotingsharesoftheinvesteedirectlyorindirectlyheldbytheinvestorandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesshallbeconsidered,includingtheinfluenceofthecurrentconvertiblewarrants,shareoptionsandconvertiblecorporatebondsissuedbytheinvestee.
WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestee,itisgenerallyconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcannotparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseitdoesnothaveasignificantinfluence;WhentheCompanyownslessthan20%(excluding)ofthevotingsharesoftheinvestee,itisgenerallynotconsideredtohaveasignificantinfluenceontheinvestee,unlessthereisclearevidencethatitcanparticipateintheproductionandoperationdecisionsoftheinvesteeundersuchcircumstances,inwhichcaseithasasignificantinfluence.
(4)Equityinvestmentheldforsale
Ifallorpartoftheequityinvestmentinanassociatedenterpriseorjointventureisclassifiedasassetsheldforsale,pleaserefertoNoteIII.13forrelevantaccountingtreatment.
Fortheremainingequityinvestmentsthatarenotclassifiedasassetsheldforsale,theequitymethodisadoptedforaccountingtreatment.
Iftheequityinvestmentinanassociatedenterpriseorjointventurethathasbeenclassifiedasheldfor
salenolongermeetstheclassificationconditionsofassetsheldforsale,theequitymethodshallbeusedforretrospectiveadjustmentfromthedatethatitisclassifiedasassetsheldforsale.
(5)TestmethodforimpairmentandaccrualmethodforimpairmentprovisionForinvestmentinsubsidiaries,associatedenterprisesandjointventures,pleaserefertoNoteIII.21fortheaccrualmethodforimpairmentprovision.
15.InvestmentrealestateInvestmentrealestatereferstorealestateheldforrentorcapitalappreciation,orboth.TheCompany'sinvestmentrealestateincludesleasedlanduserights,landuserightstransferredafterholdingandpreparingforappreciation,andleasedbuildings.
TheCompany'sinvestmentrealestateisinitiallymeasuredaccordingtothecostatthetimeofacquisition,anddepreciationoramortizationisaccruedonscheduleaccordingtotherelevantprovisionsoffixedassetsorintangibleassets.
Forinvestmentrealestatethatissubsequentlymeasuredbycostmodel,pleaserefertoNoteIII.21fortheaccrualmethodofassetimpairment.
Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentrealestateafterdeductionofitsbookvalueandrelatedtaxesshallbeincludedinthecurrentprofitsandlosses.
16.Fixedassets
(1)Recognitionconditionsoffixedassets
TheCompany'sfixedassetsrefertotangibleassetsheldfortheproductionofcommodities,provisionoflaborservices,leasingoroperationandmanagement,withaservicelifeexceedingonefiscalyear.
Onlywhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheenterpriseandthecostofthefixedassetscanbemeasuredreliably,canthefixedassetsberecognized.
ThefixedassetsoftheCompanyareinitiallymeasuredaccordingtotheactualcostatthetimeofacquisition.
(2)Depreciationmethodsofvariousfixedassets
TheCompanyadoptsthelifeaveragemethodtoaccruedepreciation.Depreciationoffixedassetsbeginswhentheyreachtheintendedusablestate,andstopswhentheyarederecognizedorclassifiedasnon-currentassetsheldforsale.Withoutconsideringtheimpairmentprovision,accordingtothecategory,estimatedservicelifeandestimatedresidualvalueoffixedassets,theCompanydeterminestheannualdepreciationrateofvariousfixedassetsasfollows:
| Category | Expectedusefullife（Year） | Estimatedresidualvalue | Depreciation |
| HouseandBuilding--Production | 35 | 4.00 | 2.74 |
| HouseandBuilding-Non-Production | 40 | 4.00 | 2.40 |
| DecorationofFixedassets | 10 | 10.00 | |
| Machineryandequipment | 10-14 | 4.00 | 9.60-6.86 |
| Transportationequipment | 8 | 4.00 | 12.00 |
| Electronicequipment | 8 | 4.00 | 12.00 |
| Otherequipment | 8 | 4.00 | 12.00 |
Forthefixedassetswiththeimpairmentprovisionwithdrawn,theaccumulativeamountofthewithdrawnfixedassetsimpairmentprovisionshallbealsodeductedtocalculateanddeterminetherateofdepreciation.
(3)SeeNoteIII.21fortheimpairmenttestmethodandaccrualmethodforimpairmentprovisionoffixedassets.
(4)Identificationbasis,valuationmethodanddepreciationmethodoffixedassetsleasedbyfinancing
FixedassetsleasedbytheCompanyshallberecognizedasfixedassetsacquiredunderfinanceleaseswhentheymeetoneormoreofthefollowingcriteria:
①Uponexpirationoftheleaseterm,theownershipoftheleasedassetsshallbetransferredtotheCompany.
②TheCompanyhastheoptionrighttopurchasetheleasedassets,andtheconcludedpurchasepriceisexpectedtobefarlowerthanthefairvalueoftheleasedassetswhenexercisingtheoptionright.Therefore,theexerciseofthisoptionrightbytheCompanycanbedeterminedreasonablyonthestartingdateofthelease.
③Eventhoughtheownershipoftheassetsisnottransferred,theleasetermaccountsformostoftheservicelifeoftheleasedassets.
④ThepresentvalueoftheminimumleasepaymentoftheCompanyontheleasestartdateisalmostequaltothefairvalueoftheleasedassetsontheleasestartdate.
⑤Incaseofspecialpropertiesoftheleasedassetsandnolargealteration,onlytheCompanycanusethem.
Fixedassetsleasedbyfinanceleaseshallberecordedatthelowerofthefairvalueoftheleasedassetsontheleasestartdateandthepresentvalueoftheminimumleasepayment.Theminimumleasepaymentistakenastherecordedvalueoflong-termpayables,andthedifferenceistakenasunrecognizedfinancingexpenses.Initialdirectexpensessuchashandlingfees,attorneyfees,travelexpenses,stampduty,etc.,whichoccurduringtheleasenegotiationandsigningoftheleasecontract,areincludedinthevalueoftheleasedassets.Unrecognizedfinancingexpensesareamortizedbytheeffectiveinterestratemethodineachperiodoftheleaseterm.
Fixedassetsleasedbyfinancingshallbedepreciatedbyadoptingpoliciesconsistentwiththeself-ownedfixedassets.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetwillbeacquiredupontheexpirationoftheleaseterm,depreciationshallbeaccruedwithintheserviceablelifeoftheleasedasset;Ifitisimpossibletoreasonablydeterminethattheownershipoftheleasedassetcanbeacquiredattheexpirationoftheleaseterm,depreciationshallbeaccruedwithintheshorteroftheleasetermandtheserviceablelifeoftheleasedasset.
(5)Attheendofeachyear,theCompanyrecheckstheservicelife,estimatednetsalvagevalueanddepreciationmethodoffixedassets.
Iftheestimatedservicelifeisdifferentfromtheoriginalestimate,theservicelifeoffixedassetsshallbeadjusted;Iftheestimatednetsalvagevalueisdifferentfromtheoriginalestimate,theestimatednetsalvagevalueshallbeadjusted.
(6)Majorrepaircost
ThemajorrepaircostincurredbytheCompanyincarryingoutregularinspectionsoffixedassets,ifthereisconclusiveevidenceshowingthattheymeettheconditionsforrecognitionoffixedassets,shallbeincludedinthecostoffixedassets,whilethosethatdonotmeettheconditionsforrecognitionoffixedassetsshallbeincludedintheprofitsandlossesofthecurrentperiod.Fixedassetsshallbedepreciatedduringtheintervalbetweenregularoverhaul.
17.Constructioninprogress
ThecostofconstructioninprogressoftheCompanyisdeterminedaccordingtotheactualproject
expenditure,includingallnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachestheintendedusablestate,andotherrelatedexpenses.Constructioninprogressistransferredtofixedassetswhenitreachesthescheduledusablestate.SeeNoteIII.21forthemethodofdepreciationofassetsinconstructioninprogress.
18.Borrowingcosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsIftheborrowingcostsincurredbytheCompanycanbedirectlyattributedtothepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions,theywillbecapitalizedandincludedintherelevantassetcosts;Otherborrowingcosts,whenincurred,arerecognizedasexpensesaccordingtotheamountincurred,andincludedincurrentprofitsandlosses.Borrowingcostsshallbecapitalizediftheymeetthefollowingconditionsatthesametime:
①Assetexpenditurehasalreadyoccurred,includingtheexpenditureincurredintheformofpaymentincash,transferofnon-cashassetsorassumptionofinterest-bearingdebtsforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions;
②Borrowingcostshavealreadyoccurred;
③Thepurchase,constructionorproductionactivitiesnecessarytomaketheassetsreachtheintendedusableorsaleablestatehavestarted.
(2)Capitalizationperiodofborrowingcosts
Capitalizationofborrowingcostsshallbestoppedwhenassetseligibleforcapitalizationacquired,constructedorproducedbytheCompanyreachtheintendedusableorsaleablestate.Borrowingcostsincurredaftertheassetsinlinewiththecapitalizationconditionsreachtheintendedusableorsaleablestateshallberecognizedasexpensesaccordingtotheamountincurredwhentheyoccur,andshallbeincludedincurrentprofitsandlosses.
Iftheassetsthatmeetthecapitalizationconditionsareabnormallyinterruptedintheprocessofpurchase,constructionorproduction,andtheinterruptionlastsexceeds3months,thecapitalizationofborrowingcostsshallbesuspended;Borrowingcostsduringnormalinterruptionperiodcontinuetobecapitalized.
(3)Capitalizationrateofborrowingcostsandcalculationmethodofcapitalizationamount
Theinterestexpensesactuallyincurredinthecurrentperiodofspecialborrowingshallbecapitalizedafterdeductingtheinterestincomefromtheunusedborrowingfundsdepositedinthebankortheinvestmentincomefromtemporaryinvestment;Thecapitalizationamountofgeneralborrowingsisdeterminedbymultiplyingtheweightedaverageoftheaccumulatedassetexpenditureoverthespecialloanbythecapitalizationrateoftheoccupiedgeneralborrowings.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaverageinterestrateofgeneralborrowings.
Duringthecapitalizationperiod,alltheexchangedifferencesofspecialborrowingsinforeigncurrencyarecapitalized;Exchangedifferencesofgeneralborrowingsinforeigncurrencyareincludedincurrentprofitsandlosses.
19.Intangibleassets
TheintangibleassetsoftheCompanyincludelanduserights,proprietarytechnologyandsoftware.
Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedandjudgedwhentheyareacquired.Iftheservicelifeislimited,theintangibleassetsshallbeamortizedwithintheexpectedservicelifebytheamortizationmethodthatcanreflecttheexpectedrealizationmodeoftheeconomicbenefitsrelatedtotheassetsfromthetimewhentheyareavailableforuse;Ifitisimpossibletoreliablydeterminetheexpectedrealizationmode,theyshallbeamortizedbystraight-linemethod;Intangibleasset\swithuncertainservicelifearenotamortized.
Amortizationmethodsofintangibleassetswithlimitedservicelifeareasfollows:
| Items | Usefullife（year） | Amortizationmethod | Notes |
| Landuseright | 50 | Straight | |
| Specialtechnoloogy | 15 | Straight | |
| Software | 5 | Straight |
Attheendofeachyear,theCompanyrecheckstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife,adjuststheoriginalestimateifitisdifferentfromthepreviousestimate,andhandlesthechangeaccordingtotheaccountingestimate.Onthebalancesheetdate,ifitisestimatedthatanintangibleassetcannolongerbringfutureeconomicbenefitstotheenterprise,allthebookvalueoftheintangibleassetwillbetransferredtothecurrentprofitsandlosses.SeeNoteIII.21forthemethodofdepreciationofintangibleassets.
20.Researchanddevelopmentexpenditure
TheCompanydividestheexpenditureofinternalresearchanddevelopmentprojectsintoexpendituresinresearchstageandexpendituresindevelopmentstage.
Expendituresinresearchstageareincludedincurrentprofitsandlosseswhentheyoccurs.
Expendituresindevelopmentstagecanonlybecapitalizediftheymeetthefollowingconditions:itistechnicallyfeasibletocompletetheintangibleassetssothattheycanbeusedorsold;Thereistheintentiontocompletetheintangibleassetsanduseorsellthem;Thewaysinwhichintangibleassetsgenerateeconomicbenefits,includingthosethatcanprovetheexistenceofmarketforproductsproducedbytheintangibleassetsortheexistenceofmarketfortheintangibleassetsthemselves,andthatfortheintangibleassetsthatwillbeusedinternally,theirusefulnesscanbeproved;Therearesufficienttechnical,financialandotherresourcestocompletethedevelopmentoftheintangibleassetsandtheabilitytouseorselltheintangibleassets;Expendituresattributabletothedevelopmentstageoftheintangibleassetscanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsareincludedincurrentprofitsandlosses.
TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftertheaboveconditionsaremetandaprojectisapprovedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.
Capitalizedexpendituresindevelopmentstagearelistedasdevelopmentexpendituresonthebalancesheet,andareconvertedintointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
21.AssetsImpairment
Theassetimpairmentoflong-termequityinvestmentofsubsidiaries,associatedenterprisesandjointventures,investmentrealestate,fixedassets,constructioninprogress,intangibleassets,goodwill,etc.(exceptinventory,investmentrealestatemeasuredaccordingtofairvaluemodel,deferredincometaxassetsandfinancialassets)shallbedeterminedaccordingtothefollowingmethods:
Onthebalancesheetdate,judgewhetherthereisanysignofpossibleimpairmentofassets.Ifthereisanysignofimpairment,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Thegoodwillformedbybusinesscombination,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheusablestatearetestedforimpairmenteveryyearregardlessofwhetherthereisanysignofimpairment.
Therecoverableamountisdeterminedaccordingtothehigherofthenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheestimatedfuturecashflowoftheasset.TheCompanyestimatesitsrecoverableamountonthebasisofindividualassets;Ifitisdifficulttoestimate
therecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theidentificationofassetgroupisbasedonwhetherthemaincashinflowgeneratedbyassetgroupisindependentofcashinflowofotherassetsorassetgroups.
Whentherecoverableamountofanassetorassetgroupislowerthanitsbookvalue,theCompanywillwritedownitsbookvaluetotherecoverableamount,andthewritten-downamountwillbeincludedinthecurrentprofitsandlosses,andthecorrespondingassetimpairmentprovisionwillbeaccruedatthesametime.Asfarastheimpairmenttestofgoodwillisconcerned,thebookvalueofgoodwillformedbybusinesscombinationisamortizedtorelevantassetgroupsaccordingtoareasonablemethodfromtheacquisitiondate;Ifitisdifficulttoamortizetotherelatedassetgroup,itshallbeamortizedtotherelatedassetgroupportfolio.Therelatedassetgrouporassetgroupportfolioisonethatcanbenefitfromthesynergyeffectofbusinesscombination,andisnotlargerthanthereportingsegmentdeterminedbytheCompany.Intheimpairmenttest,iftherearesignsofimpairmentintheassetgrouporassetgroupportfoliorelatedtogoodwill,firstly,theassetgrouporassetgroupportfoliowithoutgoodwillshallbetestedforimpairment,therecoverableamountshallbecalculated,andthecorrespondingimpairmentlossshallberecognized.Thenimpairmenttestshallbecarriedoutontheassetgrouporassetgroupportfoliocontaininggoodwill,anditsbookvalueshallbecomparedwiththerecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossofgoodwillshallberecognized.Oncetheassetimpairmentlossisrecognized,itwillnotbereversedinfutureaccountingperiods.
22.Long-termdeferredexpenses
Thelong-termdeferredexpensesincurredbytheCompanyarepricedatactualcostandamortizedequallyaccordingtotheexpectedbenefitperiod.Forlong-termdeferredexpenseitemsthatcannotbenefitfutureaccountingperiods,alltheiramortizedvaluesareincludedincurrentprofitsandlosses.
23.remuneration
(1)Scopeofemployeeremuneration
Employeecompensationreferstovariousformsofremunerationorcompensationgivenbyenterprisestoobtainservicesprovidedbyemployeesortoterminatelaborrelations.Employeeremunerationincludesshort-termsalary,post-employmentbenefits,dismissalbenefitsandotherlong-termemployeebenefits.Benefitsprovidedbyenterprisestospouses,children,dependents,familydependantsofdeceasedemployeesandotherbeneficiariesarealsoemployeeremuneration.
Accordingtoliquidity,employeeremunerationislistedinthe"PayableEmployeeRemuneration"and"Long-termPayableEmployeeRemuneration"inthebalancesheet.
(2)Shorttermremuneration
Duringtheaccountingperiodwhenemployeesprovideservices,theCompanyrecognizestheactualwages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,work-relatedinjuryinsurancepremiumsandmaternityinsurancepremiumspaidforemployeesandhousingprovidentfundsasliabilities,andincludesthemincurrentprofitsandlossesorrelatedassetcosts.Iftheliabilityisnotexpectedtobefullypaidwithintwelvemonthsaftertheendoftheannualreportingperiodwhenemployeesproviderelevantservices,andthefinancialimpactissignificant,theliabilitywillbemeasuredatthediscountedamount.
(3)Post-employmentbenefits
After-servicebenefitplanincludesdefinedcontributionplananddefinedbenefitplans.Wherethesetdepositplanreferstothepost-employmentbenefitsplaninwhichtheenterprisenolongerundertakesfurtherpaymentobligationsafterpayingfixedfeestoindependentfunds;Setbenefitplanreferstothepost-employmentbenefitsplanexceptthesetdepositplan.
Setdepositplan
Thesetdepositplanincludesbasicold-ageinsurance,unemploymentinsuranceandenterpriseannuity
plan,etc.Inadditiontothebasicold-ageinsurance,theCompanyestablishesanenterpriseannuityplan("annuityplan")accordingtotherelevantpoliciesofthenationalenterpriseannuitysystem,andemployeescanvoluntarilyparticipateintheannuityplan.Moreover,theCompanyhasnoothersignificantsocialsecuritycommitmentsforemployees.Duringtheaccountingperiodwhenemployeesprovideservices,theamountthatshouldbepaidaccordingtothesetdepositplanisrecognizedasaliabilityandincludedinthecurrentprofitsandlossesorrelatedassetcosts.
SetbenefitplanForsetbenefitplans,anactuarialvaluationisconductedbyanindependentactuaryontheannualbalancesheetdate,andthecostofbenefitprovisionisdeterminedbytheexpectedcumulativebenefitunitmethod.TheemployeeremunerationcostcausedbysetbenefitplansoftheCompanyincludesthefollowingcomponents:
①Servicecost,includingcurrentservicecost,pastservicecostandsettlementgainorloss.Where:
thecurrentservicecostreferstotheincreaseofthepresentvalueofsetbenefitplanobligationscausedbytheemployeesprovidingservicesinthecurrentperiod;Pastservicecostreferstotheincreaseordecreaseofthepresentvalueofsetbenefitplanobligationsrelatedtoemployeeserviceinpreviousperiodcausedbythemodificationofsetbenefitplans.
②Thenetinterestofsetbenefitplan'snetliabilitiesornetassets,includinginterestincomeofplannedassets,interestexpenseofsetbenefitplanobligationsandinterestaffectedbyassetceiling.
③Changesarisingfromremeasurementofnetliabilitiesornetassetsofsetbenefitplans.
Unlessotheraccountingstandardsrequireorallowemployeebenefitcoststobeincludedinassetcosts,theCompanywillincludetheaboveitems①and②incurrentprofitsandlosses;Includeitem③inothercomprehensiveincomeandsuchitemwillnotbetransferredbacktoprofitorlossinthesubsequentaccountingperiod.Whentheoriginalsetbenefitplanisterminated,allthepartsoriginallyincludedinothercomprehensiveincomewillbecarriedforwardtoundistributedprofitswithinthescopeofequity.
(4)Dismissalbenefits
IftheCompanyprovidesdismissalbenefitstoemployees,theemployeeremunerationliabilitiesarisingfromthedismissalbenefitsshallberecognizedandincludedinthecurrentprofitsandlossesontheearlierofthefollowingdates:WhentheCompanycannotunilaterallywithdrawthedismissalbenefitsprovidedbytheterminationoflaborrelationsplanorlayoffproposal;WhentheCompanyrecognizesthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofdismissalbenefits.
Iftheemployee'sinternalretirementplanisimplemented,theeconomiccompensationbeforetheofficialretirementdateisthedismissalbenefit.Fromthedaywhentheemployeestopsprovidingservicestothenormalretirementdate,thewagesoftheretiredemployeesandthesocialinsurancepremiumspaidwillbeincludedinthecurrentprofitsandlossesatonetime.Economiccompensationaftertheofficialretirementdate(suchasnormalpension)shallbetreatedaspost-employmentbenefits.
(5)Otherlong-termbenefits
Ifotherlong-termemployeebenefitsprovidedbytheCompanytoemployeesmeettheconditionsforthesetdepositplan,theyshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthesetdepositplan.Ifitmeetsthesetbenefitplans,itshallbehandledinaccordancewiththeabove-mentionedrelevantregulationsonsetbenefitplans,butthepartoftherelatedemployeeremunerationcost,whichis"thechangecausedbyremeasurementofsetbenefitplan'snetliabilitiesornetassets",shallbeincludedinthecurrentprofitsandlossesorrelatedassetcosts.
24.EstimatedLiabilities
Iftheobligationrelatedtocontingenciesmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasestimatedliabilities:
(1)SuchobligationisthecurrentobligationundertakenbytheCompany;
(2)TheperformanceofsuchobligationislikelytoleadtotheoutflowofeconomicbenefitsfromtheCompany;
(3)Theamountofsuchobligationcanbemeasuredreliably.
Estimatedliabilitiesareinitiallymeasuredaccordingtothebestestimateofexpenditurerequiredtofulfillrelevantcurrentobligations,andfactorssuchasrisks,uncertaintiesandtimevalueofmoneyrelatedtocontingenciesarecomprehensivelyconsidered.Ifthetimevalueofmoneyhasgreatinfluence,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflow.TheCompanyrechecksthebookvalueoftheestimatedliabilitiesonthebalancesheetdate,andadjuststhebookvaluetoreflectthecurrentbestestimate.
Ifallorpartoftheexpensesrequiredtopayofftherecognizedestimatedliabilitiesareexpectedtobecompensatedbyathirdpartyorotherparties,thecompensationamountcanonlyberecognizedasanassetwhenitisbasicallyconfirmedthatitcanbereceived.Therecognizedcompensationamountshallnotexceedthebookvalueoftherecognizedliabilities.
25.Share-basedpaymentandequityinstruments
(1)Typesofshare-basedpayment
Theshare-basedpaymentoftheCompanyisdividedintoequity-settledshare-basedpaymentandcash-settledshare-basedpayment.
(2)Methodfordeterminingfairvalueofequityinstruments
ThefairvalueofequityinstrumentssuchasoptionsgrantedbytheCompanywithactivemarketisdeterminedaccordingtothequotedpriceintheactivemarket.Thefairvalueofgrantedequityinstrumentssuchasoptionswithoutactivemarketisdeterminedbyoptionpricingmodel.Theselectedoptionpricingmodelconsidersthefollowingfactors:A.Theexercisepriceofoptions;B.Thevalidityperiodoftheoption;C.Thecurrentpriceoftheunderlyingshares;D.Estimatedvolatilityofshareprice;E.Expecteddividendofshares;F.Risk-freeinterestratewithinthevalidityperiodoftheoption.
(3)Basisfordeterminingthebestestimationoffeasibleequityinstruments
Oneachbalancesheetdateduringthewaitingperiod,theCompanymakesthebestestimatebasedonthelatestavailablefollow-upinformationsuchaschangesinthenumberofemployeeswithfeasiblerights,andrevisestheestimatednumberofequityinstrumentswithfeasiblerights.Onthevestingdate,thefinalestimatednumberofvestingrightsandinterestsinstrumentsshallbeconsistentwiththeactualnumberofvestingrights.
(4)Accountingtreatmentrelatedtoimplementation,modificationandterminationofshare-basedpaymentplan
Equity-settledshare-basedpaymentismeasuredatthefairvalueofequityinstrumentsgrantedtoemployees.Iftherightisexercisedimmediatelyafterthegrant,therelevantcostsorexpensesshallbeincludedinthefairvalueofequityinstrumentsonthegrantdate,andthecapitalreserveshallbeincreasedaccordingly.Iftherightscanbeexercisedonlyaftertheserviceswithinthewaitingperiodarecompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthewaitingperiod,basedonthebestestimateofthenumberofequityinstrumentsavailable,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorexpensesandcapitalreserveaccordingtothefairvalueonthegrantdateofequityinstruments.Afterthevestingdate,therecognizedrelatedcostsorexpensesandthetotalowner'sequitywillnotbeadjusted.
Equity-settledshare-basedpaymentshallbemeasuredaccordingtothefairvalueofliabilitiescalculatedanddeterminedonthebasisofsharesorotherequityinstrumentsundertakenbytheCompany.Iftherightisexercisedimmediatelyafterthegrant,thefairvalueoftheliabilitiesassumedbytheCompanyshallbeincludedintherelevantcostsorexpensesonthegrantdate,andtheliabilitiesshallbeincreasedaccordingly.Forcash-settledshare-basedpaymentthatisfeasibleonlyaftertheservicewithinthewaitingperiodiscompletedorthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthe
waitingperiod,basedonthebestestimationofthefeasibilityandaccordingtothefairvalueoftheliabilitiesassumedbytheCompany,theservicesobtainedinthecurrentperiodareincludedinthecostsorexpensesandcorrespondingliabilities.Oneachbalancesheetdateandsettlementdatebeforethesettlementofrelatedliabilities,thefairvalueofliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitsandlosses.WhentheCompanymodifiestheshare-basedpaymentplan,ifthefairvalueofthegrantedequityinstrumentsisincreasedbymodification,theincreaseoftheservicesobtainedshallberecognizedaccordingtotheincreaseofthefairvalueoftheequityinstruments;Ifthenumberofgrantedequityinstrumentsisincreasedbymodification,thefairvalueoftheincreasedequityinstrumentswillberecognizedastheincreaseinservicesobtainedaccordingly.Theincreaseoffairvalueofequityinstrumentsreferstothedifferencebetweenthefairvaluesofequityinstrumentsbeforeandaftermodificationonthemodificationdate.Ifthetotalfairvalueofshare-basedpaymentisreducedbymodificationorthetermsandconditionsoftheshare-basedpaymentplanaremodifiedinotherwaysthatareunfavorabletoemployees,theaccountingtreatmentoftheobtainedserviceswillcontinue,asifwithnochangesunlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentsarecancelled(exceptthosecancelledduetonon-marketconditionsthatdonotmeetthefeasiblerightsconditions),theCompanywilltreatthecancellationofthegrantedequityinstrumentsasanacceleratedexercise,andimmediatelyrecordtheamounttoberecognizedintheremainingwaitingperiodintothecurrentprofitsandlosses,andrecognizethecapitalreserveatthesametime.Iftheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailstomeetitduringthewaitingperiod,theCompanywilltreatitasacancellationforgrantingequityinstruments.
①DistinctionbetweenfinancialliabilitiesandequityinstrumentsAccordingtothecontracttermsoftheissuedfinancialinstrumentsandtheireconomicessence,notonlyinlegalform,butalsoincombinationwiththedefinitionsoffinancialassets,financialliabilitiesandequityinstruments,theCompanyclassifiesthefinancialinstrumentsortheircomponentsasfinancialassets,financialliabilitiesorequityinstrumentsatthetimeofinitialrecognition.
②AccountingtreatmentofotherfinancialinstrumentssuchaspreferredsharesandperpetualbondsThefinancialinstrumentsissuedbytheCompanyareinitiallyrecognizedandmeasuredaccordingtothefinancialinstrumentstandards;Afterthat,interestisaccruedordividendsaredistributedoneachbalancesheetdate,whichshallbehandledaccordingtorelevantaccountingstandardsforspecificenterprises.Thatis,todeterminetheaccountingtreatmentofinterestexpenseordividenddistributionofsuchinstrumentbasedontheclassificationofissuedfinancialinstruments.Forfinancialinstrumentsclassifiedasequityinstruments,theirinterestexpensesordividenddistributionareregardedastheprofitdistributionoftheCompany,andtheirrepurchaseandcancellationaretreatedaschangesinequity;Forfinancialinstrumentsclassifiedasfinancialliabilities,theinterestexpenseordividenddistributionshallbetreatedaccordingtotheborrowingcostsinprinciple,andtheprofitorlossarisingfromrepurchaseorredemptionshallbeincludedinthecurrentprofitsandlosses.
WhentheCompanyissuesfinancialinstruments,thetransactionexpensessuchashandlingfeesandcommissions,whichareclassifiedasdebtinstrumentsandmeasuredinamortizedcost,areincludedintheinitialmeasurementamountoftheissuedinstruments;Ifitisclassifiedasanequityinstrument,itwillbedeductedfromequity.
26.Revenue
(1)Generalprinciples
TheCompanyhasfulfilledtheperformanceobligationinthecontract,thatis,torecognizetherevenuewhenthecustomerobtainsthecontrolrightofrelatedgoodsorservices.
Ifthecontractcontainstwoormoreperformanceobligations,theCompanywillamortizethetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractstartdate,andmeasuretheincomeaccordingtothetransactionpriceamortizedtoeachindividual
performanceobligation.Whenoneofthefollowingconditionsismet,theCompanywillfulfillitsperformanceobligationswithinacertainperiodoftime;Otherwise,itperformstheperformanceobligationatacertaintime:
①ThecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformanceatthesametimeoftheitsperformance.
②CustomerscancontrolthegoodsunderconstructionduringtheperformanceoftheCompany.
③ThecommoditiesproducedduringtheperformanceoftheCompanyhaveirreplaceableuses,andtheCompanyhastherighttocollectpaymentfortheperformancepartaccumulatedsofarduringthewholecontractperiod.
Fortheperformanceobligationsperformedwithinacertainperiodoftime,theCompanyrecognizestheincomeaccordingtotheperformanceprogresswithinthatperiod.Iftheperformanceprogresscannotbereasonablydetermined,andthecostincurredoftheCompanyisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.
Forobligationsperformedatacertaintime,theCompanyshallrecognizetheincomeatthetimewhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetheracustomerhasobtainedcontrolofgoodsorservices,theCompanywillconsiderthefollowingsigns:
①TheCompanyhasthecurrentrighttoreceivepaymentforthegoodsorservices,thatis,thecustomerhasthecurrentpaymentobligationforthegoodsorservices.
②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods.
③TheCompanyhastransferredthephysicalgoodstothecustomer,thatis,thecustomerhasphysicallytakenpossessionofthegoods.
④TheCompanyhastransferredthemainrisksandrewardsontheownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsontheownershipofthegoods.
⑤Thecustomerhasacceptedthegoods.
⑥Othersignsthatthecustomerhasobtainedcontrolofthegoods.
TheCompanyhastransferredgoodsorservicestocustomersandhastherighttoreceiveconsideration(andtherightdependsonotherfactorsexceptthepassageoftime)ascontractassets,andthecontractassetsaredepreciatedonthebasisofexpectedcreditlosses.TherightoftheCompanytocollectconsiderationfromcustomersunconditionally(onlydependingonthepassageoftime)islistedasreceivables.TheobligationoftheCompanytotransfergoodsorservicestocustomersforreceivedorreceivableconsiderationfromcustomersshallberegardedasacontractualliability.
Contractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifthenetamountisdebitbalance,theyarelistedin"ContractAssets"or"OtherNon-currentAssets"accordingtotheirliquidity;Ifthenetamountisthecreditbalance,itshallbelistedin"ContractLiabilities"or"OtherNon-currentLiabilities"accordingtoitsliquidity.
(2)SpecificmethodThespecificmethodofrevenuerecognitionoftheCompanyisasfollows:
Polarizer/Textileandgarmentsalescontract:
Domesticsales:Whenthegoodsaredeliveredtothecustomerandthecustomerhasacceptedthegoods,thecustomerobtainsthecontrolofthegoods,andtheCompanyrecognizestherevenue.
Export:A.WhenthecustomerreceivesgoodsinChina,therevenuerecognitionisthesameas
"RevenueRecognitionforDomesticSales";B.Whenthedeliveryplaceofcustomerisoutsidethecountry,theCompanymainlyadoptsFOB.Whenthegoodsaredeliveredfromthewarehouseandhavebeenexportedforcustomsdeclaration,theCompanyrecognizestherevenue.Revenuefromproperty/accommodationservices:
Intheprocessofproperty/accommodationserviceprovision,theCompanyrecognizesrevenuebystages.
27.Contractcosts
Contractcostsincludeincrementalcostsincurredforobtainingcontractsandcontractperformancecosts.
TheincrementalcostincurredforobtainingthecontractreferstothecostthattheCompanywillnotincurwithoutobtainingthecontract(suchassalescommission,etc.).Ifthecostisexpectedtoberecovered,theCompanywillrecognizeitasthecontractacquisitioncostasanasset.OtherexpensesincurredbytheCompanytoobtainthecontractexcepttheincrementalcostexpectedtoberecoveredareincludedinthecurrentprofitsandlosseswhenincurred.
Ifthecostincurredfortheperformanceofthecontractdoesnotfallwithinthescopeofotheraccountingstandardsforenterprisessuchasinventoryandmeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasthecontractperformancecostasanasset:
①Suchcostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredonlyduetothiscontract;
②SuchcostincreasestheresourcesoftheCompanyforfulfillingitsperformanceobligationsinthefuture;
③Thecostisexpectedtoberecovered.
Assetsrecognizedbycontractacquisitioncostandassetsrecognizedbycontractperformancecost(hereinafterreferredtoas"AssetsRelatedtoContractCost")shallbeamortizedonthesamebasisastherevenuerecognitionofgoodsorservicesrelatedtotheassets,andshallbeincludedincurrentprofitsandlosses.
Whenthebookvalueoftheassetsrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanywillaccrueimpairmentprovisionoftheexcessandrecognizeitastheassetimpairmentloss:
①TheremainingconsiderationexpectedtobeobtainedbytheCompanyduetothetransferofgoodsorservicesrelatedtotheasset;
②Theestimatedcosttobeincurredfortransferringtherelatedgoodsorservices.
Thecontractperformancecostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognition,whichshallbelistedin"Inventory",andtheamortizationperiodformorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognitionshallbelistedin"OtherNon-currentAssets".
Thecontractacquisitioncostrecognizedasanassetshallbeamortizedfornomorethanoneyearoronenormalbusinesscycleatinitialrecognition,andshallbelistedin"OtherCurrentAssets".Theamortizationperiodforinitialrecognitionshallexceedoneyearoronenormalbusinesscycle,andshallbelistedin"OtherNon-currentAssets".
28.Governmentsubsidy
Governmentsubsidiesarerecognizedwhentheymeettheconditionsattachedtogovernmentsubsidiesandcanbereceived.
Governmentsubsidiesformonetaryassetsshallbemeasuredaccordingtotheamountreceivedor
receivable.Governmentsubsidiesfornon-monetaryassetsaremeasuredatfairvalue;Ifthefairvaluecannotbeobtainedreliably,itshallbemeasuredaccordingtothenominalamountRMB1.GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheCompanyforpurchasingandbuildingorforminglong-termassetsinotherways;Inaddition,asagovernmentsubsidyrelatedtoincome.Wherethegovernmentdocumentsdonotspecifytheobjectofthesubsidy,andthesubsidycanformlong-termassets,thepartofthegovernmentsubsidiescorrespondingtothevalueoftheassetsshallberegardedasthegovernmentsubsidyrelatedtotheassets,andtherestshallberegardedasthegovernmentsubsidiesrelatedtotheincome;whereitisdifficulttobedistinguished,governmentsubsidiesasawholearetreatedasincome-relatedgovernmentsubsidies.
Governmentsubsidiesrelatedtoassetsoffsetthebookvalueofrelatedassets,orarerecognizedasdeferredincomeandincludedinprofitsandlossesbystagesaccordingtoareasonableandsystematicmethodwithintheservicelifeofrelatedassets.Governmentsubsidiesrelatedtoincome,whichareusedtocompensaterelatedcostsorlossesthathaveoccurred,areincludedincurrentprofitsandlossesoroffsetrelatedcosts;Ifusedtocompensaterelatedcostsorlossesinlaterperiods,theywillbeincludedinthedeferredincome,andincludedinthecurrentprofitsandlossesoroffsetrelatedcostsduringtherecognitionperiodofrelatedcostsorlosses.Governmentsubsidiesmeasuredinnominalamountaredirectlyincludedincurrentprofitsandlosses.TheCompanyadoptsaconsistentapproachtothesameorsimilargovernmentsubsidybusiness.Governmentsubsidiesrelatedtodailyactivitiesareincludedinotherincomeoroffsetrelatedcostsaccordingtothenatureofeconomicbusiness.Governmentsubsidiesirrelevanttoroutineactivitiesshallbeincludedintothenon-operatingreceiptanddisbursement.Whentherecognizedgovernmentsubsidyneedstobereturned,ifthebookvalueofrelatedassetsisoffsetduringinitialrecognition,thebookvalueofassetswillbeadjusted;Ifthereisarelevantdeferredincomebalance,thebookbalanceoftherelevantdeferredincomewillbeoffset,andtheexcesswillbeincludedinthecurrentprofitsandlosses;Inothercases,itisdirectlyincludedinthecurrentprofitsandlosses.
Forthediscountinterestofpreferentialpolicyloans,ifthefinanceallocatesthediscountinterestfundstothelendingbank,theactuallyreceivedloanamountistakenastherecordedvalueoftheloan,andtheborrowingcostsarecalculatedaccordingtotheloanprincipalandpreferentialpolicyinterestrate.IfthefinancedirectlyallocatesthediscountinterestfundstotheCompany,thediscountinterestwilloffsettheborrowingcosts.
29.TheDeferredTaxAssets/ThedeferredTaxLiabilities
Incometaxincludescurrentincometaxanddeferredincometax.Exceptforadjustedgoodwillarisingfrombusinesscombinationordeferredincometaxrelatedtotransactionsormattersdirectlyincludedinowner'sequity,theyareallincludedincurrentprofitsandlossesasincometaxexpenses.
Accordingtothetemporarydifferencebetweenthebookvalueofassetsandliabilitiesandthetaxbasisonthebalancesheetdate,theCompanyadoptsthebalancesheetliabilitymethodtoconfirmdeferredincometax.
Alltaxabletemporarydifferencesarerecognizedasrelateddeferredincometaxliabilities,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Initialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:thetransactionisnotabusinesscombination,andthetransactiondoesnotaffectaccountingprofitsortaxableincomewhenitoccurs;
(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociatedenterprises,thetimeforthetemporarydifferencestobereversedcanbecontrolledandthetemporarydifferenceswillprobablynotbereversedintheforeseeablefuture.
Fordeductibletemporarydifferences,deductiblelossesandtaxdeductionsthatcanbecarriedforwardtolateryears,theCompanyshallrecognizethedeferredincometaxassetsarisingtherefromtotheextent
thatitislikelytoobtainthefuturetaxableincomeusedtooffsetthedeductibletemporarydifferences,deductiblelossesandtaxdeductions,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinesscombination,anditdoesnotaffectaccountingprofitortaxableincomewhenthetransactionoccurs;
(2)Fordeductibletemporarydifferencesrelatedtoinvestmentsofsubsidiaries,jointventuresandassociatedenterprises,correspondingdeferredincometaxassetsarerecognizedifthefollowingconditionsaremetatthesametime:temporarydifferencesarelikelytobereversedintheforeseeablefuture,andtaxableincomeusedtooffsetthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.
Onthebalancesheetdate,theCompanymeasuresdeferredincometaxassetsanddeferredincometaxliabilitiesaccordingtotheapplicabletaxrateduringtheexpectedperiodofrecoveringtheassetsorpayingofftheliabilities,andreflectstheincometaximpactoftheexpectedwayofrecoveringtheassetsorpayingofftheliabilitiesonthebalancesheetdate.
Onthebalancesheetdate,theCompanyrechecksthebookvalueofdeferredincometaxassets.Ifitisunlikelythatsufficienttaxableincomewillbeobtainedinthefutureperiodtooffsetthebenefitsofdeferredincometaxassets,thebookvalueofdeferredincometaxassetswillbewrittendown.Whensufficienttaxableincomeislikelytobeobtained,thewritten-downamountshallbereversed.
30.Operatingleaseandfinancinglease
TheCompanyrecognizestheleasesthathavesubstantiallytransferredallrisksandrewardsrelatedtoassetownershipasfinancialleases,andotherleasesexceptfinancialleasesasoperatingleases.
(1)TheCompanyservesasthelessor
Inthefinanciallease,atthebeginningdateoftheleaseterm,theCompanytakesthesumoftheminimumleasepaymentandtheinitialdirectexpensesastherecordedvalueofthefinancialleasereceivable,andrecordstheunsecuredresidualvalue;Thedifferencebetweenthesumoftheminimumleasepaymentamount,initialdirectexpensesandunsecuredresidualvalueanditspresentvalueisrecognizedasunrealizedfinancingincome.Fortheunrealizedfinancingincome,thecurrentfinancingincomeshallbecalculatedandrecognizedaspertheeffectiveinterestmethodinallperiodswithintheleaseterm.
Fortherentintheoperatinglease,theCompanyrecognizesthecurrentprofitsandlossesaccordingtothestraight-linemethodineachperiodoftheleaseterm.Theinitialdirectexpensesincurredareincludedincurrentprofitsandlosses.
(2)TheCompanyservesasthelessee
Infinancialleasing,atthebeginningdateoftheleaseterm,theCompanytakethelowerofthefairvalueofleasedassetsandthepresentvalueoftheminimumleasepaymentastherecordedvalueofleasedassets,andtheminimumleasepaymentastherecordedvalueoflong-termpayables,andthedifferencebetweenthemasunrecognizedfinancingexpenses.Theinitialdirectcostshallbeincludedintothevalueoftheleasedassets.Fortheunrecognizedfinancingcost,thecurrentfinancingcostshallbecalculatedandrecognizedaspertheeffectiveinterestmethodinallperiodswithintheleaseterm.TheCompanyadoptsthedepreciationpolicyconsistentwiththatoftheself-ownedfixedassetstowithdrawthedepreciationoftheleasedassets.
TherentintheoperatingleaseisincludedintherelevantassetcostorcurrentprofitsandlossesbytheCompanyaccordingtothestraight-linemethodineachperiodoftheleaseterm;Theinitialdirectexpensesincurredareincludedincurrentprofitsandlosses.
(3)RentconcessioncausedbyCOVID-19outbreak
ForrentconcessionssuchasrentreductionorexemptionanddeferredpaymentreachedbetweentheCompanyandthelesseeontheexistingleasecontractdirectlycausedbytheCOVID-19outbreak,andthefollowingconditionsaremet,theCompanyadoptssimplifiedmethodsforleasinghousesandbuildings:
①Theleaseconsiderationafterconcessionisreducedorbasicallyunchangedcomparedwiththat
beforeconcession,inwhichtheleaseconsiderationisnotdiscountedorisdiscountedatthediscountratebeforeconcession;
②Aftercomprehensiveconsiderationofqualitativeandquantitativefactors,itisdeterminedthatthereisnosignificantchangeinothertermsandconditionsofthelease.
TheCompanydoesnotevaluatewhetherthereisanyleasechange.
WhentheCompanyservesasthelessor,foroperatinglease,theCompanycontinuestorecognizetheoriginalcontractrentasleaserevenueinthesamewayasbeforetheconcession.Incaseofrentreductionorexemption,theCompanywilltakethereducedrentascontingentrentandoffsettheleaserevenueduringthereductionorexemptionperiod.Incaseofrentreductionorexemption,theCompanywilltakethereducedrentascontingentrent,andwhentheconcessionagreementisreachedandotherrightstocollecttheoriginalrentarewaived,theoriginalrecognizedleaserevenuewillbeoffset.
31.Sharerepurchase
TherepurchasedsharesoftheCompanyshallbemanagedastreasurysharesbeforecancellationortransfer,andallexpensesforrepurchasedsharesshallbeconvertedintotreasurysharescost.Wheretheconsiderationandtransactioncostspaidinsharerepurchasereducetheowner'sequity,whenrepurchasing,transferringorcancelingtheCompany'sshares,thegainsorlossesarenotrecognized.
Transferoftreasurystockshallbeincludedinthecapitalreserveaccordingtothedifferencebetweentheactuallyreceivedamountandthebookamountofthetreasurystock.Ifthecapitalreserveisinsufficienttooffset,thesurplusreserveandundistributedprofitsshallbeoffset.Forwrite-offoftreasurystocks,reducecapitalstockaccordingtoparvalueandnumberofcancelledstocks,andwriteoffcapitalreserveaccordingtothedifferencebetweenbookbalanceandparvalueofcancelledtreasurystocks.Ifcapitalreserveisinsufficienttowriteoff,writeoffsurplusreserveandundistributedprofits.
32.Restrictedstocks
Intheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentiveobject,andtheincentiveobjectsubscribesforstocksfirst.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmetlater,theCompanywillrepurchasethestocksatthepriceagreedinadvance.Iftherestrictedstocksissuedtoemployeeshavegonethroughtheregistrationandothercapitalincreaseproceduresaccordingtorelevantregulations,onthegrantdate,theCompanywillrecognizethecapitalstockandcapitalreserve(capitalstockpremium)accordingtothesharesubscriptionpaymentbyemployees;Atthesametime,thetreasurystocksandotherpayablesarerecognizedforrepurchaseobligations.
33.Significantaccountingjudgmentsandestimates
Basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsforfutureevents,theCompanycontinuouslyevaluatestheimportantaccountingestimatesandkeyassumptionsadopted.Importantaccountingestimatesandkeyassumptionsthatarelikelytocausesignificantadjustmentriskstothebookvalueofassetsandliabilitiesinthenextfiscalyeararelistedasfollows:
Classificationoffinancialassets
ThemajorjudgmentsinvolvedindeterminingtheclassificationoffinancialassetsbytheCompanyincludetheanalysisofbusinessmodelandcontractcashflowcharacteristics.
TheCompanydeterminesthebusinessmodelofmanagingfinancialassetsattheleveloffinancialassetportfolio.Thefactorsconsideredincludethewayofevaluatingandreportingthefinancialassetperformancetokeymanagers,therisksaffectingthefinancialassetperformanceandtheirmanagementmethods,andthewayofgettingremunerationforrelevantbusinessmanagers.
Whenevaluatingwhetherthecontractualcashflowoffinancialassetsisconsistentwiththebasicloanarrangement,theCompanyfocusesonthefollowingmainjudgments:Whetherthetimedistributionoramountoftheprincipalmaychangeduringthedurationduetoprepaymentandotherreasons;Whetherinterestonlyincludesthetimevalueofmoney,creditrisk,otherbasicborrowingrisks,andconsiderationwithcostsandprofits.Forexample,whethertheprepaymentamountonlyreflectstheunpaidprincipalandinterestbasedontheunpaidprincipal,andthereasonablecompensationpaidfortheearlyterminationof
thecontract.MeasurementofexpectedcreditlossofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivablethroughthedefaultriskexposureandexpectedcreditlossrateofaccountsreceivable,anddeterminestheexpectedcreditlossratebasedonthedefaultprobabilityandlossgivendefault.TheCompanyusesinternalhistoricalcreditlossexperienceandotherdatatodeterminetheexpectedcreditlossrate,andadjuststhehistoricaldatabasedonthecurrentsituationandforward-lookinginformation.Whenconsideringforward-lookinginformation,theindicatorsusedbytheCompanyincludetheriskofeconomicdownturn,andchangesinexternalmarketenvironment,technicalenvironmentandcustomerconditions.TheCompanyregularlymonitorsandrecheckstheassumptionsrelatedtothecalculationofexpectedcreditlosses.
DeferredincometaxassetsDeferredincometaxassetsshallberecognizedforallunusedtaxlossestotheextentthatitislikelythattherewillbeenoughtaxableprofitstooffsetthelosses.Itrequiresalotofjudgmentsfromthemanagementtoestimatethetimeandamountoffuturetaxableprofits,andtodeterminetheamountofdeferredincometaxassetsthatshouldberecognizedbasedonthetaxplanningstrategies.
DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheestimatedfuturecashflowdiscountedaccordingtothecurrentdiscountrateofitemswithsimilartermsandriskcharacteristics.ThisvaluationrequirestheCompanytoestimatetheexpectedfuturecashflowanddiscountrate,soitisuncertain.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,orthepossibleestimatedamountoffairvalueiswidelydistributed,andthecostrepresentsthebestestimateoffairvaluewithintherange,suchcostcanrepresentitsproperestimateoffairvaluewithinthedistributionrange.
34.Changesinimportantaccountingpoliciesandaccountingestimates
(1)Changesinimportantaccountingpolicies
①NewincomestandardsTheMinistryofFinancepromulgatedtheAccountingStandardsforBusinessEnterprisesNo.14-Income(Revised)in2017(hereinafterreferredtoasthe"NewIncomeStandards").TheCompanyimplementedsuchStandardsfromJanuary1,2020afterdeliberationandapprovalbythe27thmeetingoftheSeventhBoardofDirectors,andadjustedtherelevantcontentsofaccountingpolicies.TheCompanyhasfulfilledtheperformanceobligationinthecontract,thatis,torecognizetherevenuewhenthecustomerobtainsthecontrolrightofrelatedgoodsorservices.Whencertainconditionsaremet,theCompanywillperformitsperformanceobligationswithinacertainperiodoftime;Otherwise,itwillperformitsperformanceobligationsatacertaintime.Ifthecontractcontainstwoormoreperformanceobligations,theCompanywillamortizethetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractstartdate,andmeasuretherevenueaccordingtothetransactionpriceamortizedtoeachindividualperformanceobligation.
TheCompanyhasadjustedtherelevantaccountingpoliciesaccordingtothespecificprovisionsonspecificmattersortransactionsinthenewincomestandards.TheCompanyhastransferredgoodstocustomersandhastherighttoreceiveconsideration,andsuchrightislistedascontractassetsdependingonotherfactorsexceptthepassageoftime.TheCompany'sobligationtotransfergoodstocustomersforreceivedorreceivableconsiderationfromcustomersislistedasacontractualliability.
AccordingtothecumulativeimpactofthefirstimplementationoftheNewIncomeStandards,theCompanyadjustedtheamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningof2020,butdidnotadjustthedataofthecomparativefinancialstatements.TheCompanyonlyadjusteditsretainedearningsatthebeginningof2020andtheamountofotherrelateditemsinthefinancial
statementsforthecumulativeimpactofunfinishedcontractsonJanuary1,2020.DuetotheimplementationoftheNewIncomeStandards,theCompanyreclassifiedtheadvancereceiptsrelatedtothesalesofgoodsandtheprovisionoflaborservicesascontractliabilities.
| Contentsandcausesofchangesinaccountingpolicies | Affectedreportitems | Affectedamount(January1,2020) |
| DuetotheimplementationoftheNewIncomeStandards,theCompanyreclassifiedtheadvancereceiptsrelatedtothesalesofgoodsandtheprovisionoflaborservicesascontractliabilities. | Contractliabilities | 2,349,448.90 |
| Advancereceipts | -2,349,448.90 |
Comparedwiththeoriginalincomestandards,theimpactofimplementingtheNewIncomeStandardsonrelateditemsinthe2020financialstatementsisasfollows:
| Affectedbalancesheetitems | AffectedamountDecember31,2020 |
| Contractliabilities | 2,511,466.76 |
| Advancereceipts | -2,511,466.76 |
| Affectedincomestatementitems | AffectedamounYear2020t |
| None |
②InterpretationofAccountingStandardsforBusinessEnterprisesNo.13
InDecember2019,theMinistryofFinanceissuedtheInterpretationofAccountingStandardsforBusinessEnterprisesNo.13(CS[2019]No.21)(hereinafterreferredtoas"InterpretationNo.13").InterpretationNo.13revisedthethreeelementsconstitutingthebusiness,refinedthejudgmentconditionsofthebusiness,andintroducedthemethodof"concentrationtest"totheacquirerofbusinesscombinationnotunderthesamecontrolwhenjudgingwhethertheacquiredoperatingactivitiesorassetportfoliosconstituteabusiness.
InterpretationNo.13clarifiesthattherelatedpartiesofanenterpriseincludejointventuresorassociatedenterprisesofothercommonmemberunits(includingparentcompaniesandsubsidiaries)oftheenterprisetowhichtheenterpriseisaffiliated,andjointventuresorassociatedenterprisesofinvestorswhojointlycontroltheenterprise.
InterpretationNo.13willbeimplementedasofJanuary1,2020,andtheCompanywilladoptthefutureapplicablelawforaccountingtreatmentoftheabovechangesinaccountingpolicies.
TheadoptionofInterpretationNo.13hasnosignificantimpactonthefinancialposition,operatingresultsandrelatedpartydisclosureoftheCompany.
③InJune2020,theMinistryofFinanceissuedtheNoticeonPrintingandDistributingthe"AccountingTreatmentRegulationsforRentConcessionsDuetoCOVID-19"(CS[2020]No.10),whichallowsasimplifiedmethodforrentconcessionsduetoCOVID-19accordingtotheaccountingtreatmentregulations.
TheCompanyhasadoptedthesimplifiedmethodintheaccountingtreatmentregulations(seeNotesIII.30.(3))fortherentconcessionsrelatedtothehouseleasesinceJanuary1,2020,andrecordedtherelevantrentconcessionsintoprofitandlossduringtheconcessionperiodorwhentherelevantrightsandobligationsarereleasedandabandonedwhentheconcessionagreementisreached.Theamountofimpact
ofthesimplifiedmethodonthecurrentprofitisRMB10,113,923.47.TheabovesimplifiedtreatmentmethodisnotapplicabletotherentconcessionsoccurredfortheCompanybeforeJanuary1,2020.
(2)ChangesinaccountingestimatesNone
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeases
Consolidatedbalancesheet
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Currentasset： | |||
| Monetaryfund | 409,564,847.52 | 409,564,847.52 | |
| Transactionalfinancialassets | 830,000,000.00 | 830,000,000.00 | |
| Derivativefinancialassets | |||
| Notesreceivable | 40,424,601.97 | 40,424,601.97 | |
| Accountreceivable | 365,325,029.38 | 365,325,029.38 | |
| Financingofreceivables | 17,933,597.98 | 17,933,597.98 | |
| Prepayments | 18,445,857.53 | 18,445,857.53 | |
| Otheraccountreceivable | 12,440,761.13 | 12,440,761.13 | |
| Including：Interestreceivable | 7,610,043.19 | 7,610,043.19 | |
| Dividendreceivable | |||
| Inventories | 391,717,935.12 | 391,717,935.12 | |
| Contractassets | |||
| Assetsheldforsales | |||
| Non-currentassetduewithin1year | |||
| Othercurrentasset | 140,821,609.72 | 140,821,609.72 | |
| Totalofcurrentassets | 2,226,674,240.35 | 2,226,674,240.35 | |
| Non-currentassets： | |||
| Creditor'srightinvestment | |||
| Otherinvestmentonbonds | |||
| Long-termreceivable |
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Netassetsfordefinedbenefitplan | |||
| Longtermshareequityinvestment | 152,209,929.72 | 152,209,929.72 | |
| Otherequityinstrumentsinvestment | 248,781,946.73 | 248,781,946.73 | |
| Othernon-currentfinancialassets | |||
| Realestateinvestment | 112,730,320.90 | 112,730,320.90 | |
| Fixedassets | 903,229,077.83 | 903,229,077.83 | |
| Constructioninprogress | 839,866,275.92 | 839,866,275.92 | |
| Productionphysicalassets | |||
| Oil&gasassets | |||
| Intangibleassets | 36,517,996.34 | 36,517,996.34 | |
| Developmentexpenses | |||
| Goodwill | |||
| Long-germexpensestobeamortized | 2,692,750.67 | 2,692,750.67 | |
| Deferredincometaxasset | 5,618,026.43 | 5,618,026.43 | |
| Othernon-currentasset | 3,079,321.10 | 3,079,321.10 | |
| Totalofnon-currentassets | 2,304,725,645.64 | 2,304,725,645.64 | |
| Totalofassets | 4,531,399,885.99 | 4,531,399,885.99 | |
| Currentliabilities | |||
| Short-termloans | |||
| Transactionalfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | |||
| Accountpayable | 241,297,770.64 | 241,297,770.64 | |
| Advancereceipts | 30,530,117.62 | 28,180,668.72 | -2,349,448.90 |
| Contractliabilities | 2,349,448.90 | 2,349,448.90 | |
| Employees’wagepayable | 38,556,180.20 | 38,556,180.20 | |
| Taxpayable | 22,545,550.33 | 22,545,550.33 |
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Otheraccountpayable | 152,645,780.14 | 152,645,780.14 | |
| Including：Interestpayable | |||
| Dividendpayable | |||
| Liabilitiesheldforsales | |||
| Non-currentliabilityduewithin1year | |||
| Othercurrentliability | |||
| Totalofcurrentliability | 485,575,398.93 | 485,575,398.93 | |
| Non-currentliabilities： | |||
| Long-termloan | |||
| Bondpayable | |||
| Including：preferredstock | |||
| Sustainabledebt | |||
| Long-termpayable | |||
| Long-termremunerationpayabletostaff | |||
| Expectedliabilities | |||
| Deferredincome | 121,264,571.22 | 121,264,571.22 | |
| Deferredincometaxliability | 69,944,345.66 | 69,944,345.66 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 191,208,916.88 | 191,208,916.88 | |
| Totalofliability | 676,784,315.81 | 676,784,315.81 | |
| Owners’equity： | |||
| Sharecapital | 509,338,429.00 | 509,338,429.00 | |
| Otherequityinstruments | |||
| Including：preferredstock | |||
| Sustainabledebt | |||
| Capitalreserves | 1,974,922,248.03 | 1,974,922,248.03 |
| Items | December31,2019 | January1,2020 | Amountinvolvedintheadjustment |
| Less：Sharesinstock | 16,139,003.40 | 16,139,003.40 | |
| Othercomprehensiveincome | 119,737,783.31 | 119,737,783.31 | |
| Specialreserve | |||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 | |
| Retainedprofit | 49,307,764.03 | 49,307,764.03 | |
| Totalofowner’sequitybelongtotheparentcompany | 2,727,764,144.36 | 2,727,764,144.36 | |
| Minorityshareholders’equity | 1,126,851,425.82 | 1,126,851,425.82 | |
| Totalofowners’equity | 3,854,615,570.18 | 3,854,615,570.18 | |
| Totalofliabilitiesandowners’equity | 4,531,399,885.99 | 4,531,399,885.99 |
ParentCompanyBalanceSheet
| Items | 2019.12.31 | 2020.01.01 | Amountinvolvedintheadjustment |
| Currentasset： | |||
| Monetaryfund | 27,979,338.37 | 27,979,338.37 | |
| Transactionalfinancialassets | 650,000,000.00 | 650,000,000.00 | |
| Derivativefinancialassets | |||
| Notesreceivable | |||
| Accountreceivable | 522,931.04 | 522,931.04 | |
| Financingofreceivables | |||
| Prepayments | 768,099.94 | 768,099.94 | |
| Otheraccountreceivable | 17,039,506.00 | 17,039,506.00 | |
| Including：Interestreceivable | 7,329,228.31 | 7,329,228.31 | |
| Dividendreceivable | |||
| Inventories | |||
| Assetsheldforsales | |||
| Non-currentassetduewithin1year |
| Items | 2019.12.31 | 2020.01.01 | Amountinvolvedintheadjustment |
| Othercurrentasset | |||
| Totalofcurrentassets | 696,309,875.35 | 696,309,875.35 | |
| Non-currentassets： | |||
| Creditor'srightinvestment | |||
| Otherinvestmentonbonds | |||
| Long-termreceivable | |||
| Netassetsfordefinedbenefitplan | |||
| Longtermshareequityinvestment | 2,102,430,511.88 | 2,102,430,511.88 | |
| Otherequityinstrumentsinvestment | 206,816,952.64 | 206,816,952.64 | |
| Othernon-currentfinancialassets | |||
| Realestateinvestment | 107,199,622.80 | 107,199,622.80 | |
| Fixedassets | 25,500,695.77 | 25,500,695.77 | |
| Constructioninprogress | 19,552.00 | 19,552.00 | |
| Productionphysicalassets | |||
| Oil&gasassets | |||
| Intangibleassets | 659,937.75 | 659,937.75 | |
| Developmentexpenses | |||
| Goodwill | |||
| Long-germexpensestobeamortized | 800,858.17 | 800,858.17 | |
| Deferredincometaxasset | 5,466,478.06 | 5,466,478.06 | |
| Othernon-currentasset | |||
| Totalofnon-currentassets | 2,448,894,609.07 | 2,448,894,609.07 | |
| Totalofassets | 3,145,204,484.42 | 3,145,204,484.42 | |
| Currentliabilities | |||
| Short-termloans | |||
| Transactionalfinancialliabilities | |||
| Derivativefinancialliabilities |
| Items | 2019.12.31 | 2020.01.01 | Amountinvolvedintheadjustment |
| Notespayable | |||
| Accountpayable | 411,743.57 | 411,743.57 | |
| Advancereceipts | 2,878,936.58 | 639,024.58 | -2,239,912.00 |
| ContractLiabilities | -2,239,912.00 | 2,239,912.00 | |
| Employees’wagepayable | 11,910,175.11 | 11,910,175.11 | |
| Taxpayable | 20,801,961.18 | 20,801,961.18 | |
| Otheraccountpayable | 119,984,209.60 | 119,984,209.60 | |
| Including：Interestpayable | |||
| Dividendpayable | |||
| Liabilitiesheldforsales | |||
| Non-currentliabilityduewithin1year | |||
| Othercurrentliability | |||
| Totalofcurrentliability | 155,987,026.04 | 155,987,026.04 | |
| Non-currentliabilities： | |||
| Long-termloan | |||
| Bondpayable | |||
| Including：preferredstock | |||
| Sustainabledebt | |||
| Long-termpayable | |||
| Long-termremunerationpayabletostaff | |||
| Expectedliabilities | |||
| Deferredincome | 600,000.00 | 600,000.00 | |
| Deferredincometaxliability | 66,953,097.14 | 66,953,097.14 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 67,553,097.14 | 67,553,097.14 | |
| Totalofliability | 223,540,123.18 | 223,540,123.18 |
| Items | 2019.12.31 | 2020.01.01 | Amountinvolvedintheadjustment |
| Owners’equity | |||
| Sharecapital | 509,338,429.00 | 509,338,429.00 | |
| Otherequityinstruments | |||
| Including：preferredstock | |||
| Sustainabledebt | |||
| Capitalreserves | 1,589,869,499.36 | 1,589,869,499.36 | |
| Less：Sharesinstock | 16,139,003.40 | 16,139,003.40 | |
| Othercomprehensiveincome | 110,764,037.74 | 110,764,037.74 | |
| Specialreserve | |||
| Surplusreserves | 90,596,923.39 | 90,596,923.39 | |
| Retainedprofit | 637,234,475.15 | 637,234,475.15 | |
| Totalofowners’equity | 2,921,664,361.24 | 2,921,664,361.24 | |
| Totalofliabilitiesandowners’equity | 3,145,204,484.42 | 3,145,204,484.42 |
IV.TaxesoftheCompany
1.Maintaxescategoriesandtaxrate
| Taxes | Taxreferences | Applicabletaxrates |
| VAT | Thetaxableturnover | 13，6，5 |
| Cityconstructiontax | Turnovertaxtobepaidallowances | 7 |
| Educationsurcharge | Turnovertaxtobepaidallowances | 3 |
| Localeducationsurcharge | Turnovertaxtobepaidallowances | 2 |
| Businessincometax | Taxableincome | 25，20，16.5，15 |
| Nameoftaxpayer | Incometaxrates |
| ShenzhenTextile(Holdings)Co.,Ltd | 25% |
| ShenzhenLisiIndustrialCo.,Ltd. | 20% |
| ShenfangPropertyManagementCo.,Ltd. | 20% |
| ShenfangPropertyManagementCo.,Ltd. | 20% |
| ShenzhenHuaqiangHotel | 20% |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 20% |
| SAPOPhotoelectricCo.,Ltd. | 15% |
| ShenzhenShenfangImports&ExportsCo.,Ltd. | 25% |
| Shengtou（HK）Co.,Ltd. | 16.5% |
2.Taxpreferenceandapprovalfile
InaccordancewithrelevantprovisionsoftheNoticeofMinistryofFinance,GeneralAdministrationofCustomsandStateTaxationAdministrationRegardingTaxPreferencePoliciesforFurtherSupportingtheDevelopmentofNew-typeDisplayDeviceIndustry(CaiGuanShui(2016)No.62),ShenzhenShengboOptoelectronicTechnologyCo.,Ltd.manufacturedkeymaterialsandpartsfortheupstreamindustryofnew-typedisplaydevicesincludingcolorfullightfiltercoatingandpolarizersheetthatcomplywiththeplanningforindependentdevelopmentofdomesticindustriesmayenjoythepreferentialpoliciesofexemptionfromimporttarifffortheimportofrawmaterialsandconsumablesforthepurposeofselfuseandproductionthatcannotbeproduceddomesticallyfromJanuary1,2016andDecember31,2020.
SAPOPhotoelectricCo.,Ltd.thesubsidiarycompanyofourcompany,hasbeenqualifiedasnationalhigh-techenterprisesince2019,High-techandenterprisecertificateNo.:GR201944205666,Thecertificateisvalidforthreeyears,Theenterpriseincometaxrateofthisyearis15%.
ShenzhenBeautyCenturyGarmentCo.,Ltd.,ShenzhenHuaqiangHotelGarmentCo.,Ltd.andShenzhenLisiIndustrialDevelopmentCo.,Ltd.,subsidiariesoftheCompany,areallsmallandlow-profitenterprisesasstipulatedintheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonImplementingInclusiveTaxConcessionPolicyforSmallandMicroEnterprises(CS[2019]No.13).ForthepartofthetaxableincomeofthisyearthatdoesnotexceedRMB1million,thetaxableincomeisreducedto25%,andtheenterpriseincometaxispaidatarateof20%;ForthetaxableincomeofthisyearthatexceedsRMB1millionbutdoesnotexceedRMB3million,thetaxableincomeisreducedto50%andtheenterpriseincometaxispaidatarateof20%.
V.Notesofconsolidatedfinancialstatement
1.MonetaryCapital
| Items | 2020.12.31 | 2019.12.31 | |
| Cashathand | 4,127.10 | 11,091.94 | |
| Bankdeposit | 271,085,025.10 | 272,366,495.29 | |
| Othermonetaryfunds | 7,998,084.75 | 137,187,260.29 | |
| Total | 279,087,236.95 | 409,564,847.52 | |
| Including:Thetotalamountofdepositabroad | 7,829,822.78 | 3,272,384.31 | |
Note:Attheendoftheperiod,RMB750,000.00ofothermonetaryfundsoftheCompanyistheL/Csecuritydeposit,exceptforwhichthereisnomortgage,pledgeorfreezing,ormoneydepositedabroadwithrestrictedrepatriation.
2.Transactionalfinancialassets
| Items | 2020.12.31 | 2019.12.31 |
| Structuredeposit | 200,536,575.34 | 830,000,000.00 |
| Monetaryfunds | 484,080,684.72 | -- |
| Total | 684,617,260.06 | 830,000,000.00 |
3.Notesreceivable
| Category | 2020.12.31 | 2019.12.31 | ||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |
| Bankacceptance | -- | -- | -- | 40,424,601.97 | -- | 40,424,601.97 |
| .Commercialacceptancebill | 16,898,148.02 | 84,490.74 | 16,813,657.28 | -- | -- | -- |
| Total | 16,898,148.02 | 84,490.74 | 16,813,657.28 | 40,424,601.97 | -- | 40,424,601.97 |
Note：
(1)ThecompanyhasnoNotesreceivablepledged.
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptance | 60,260,489.10 | -- |
(2)Attheendoftheperiod,theCompanyhasnobillstransferredtoaccountsreceivableduetothe
drawer'snon-performance
(3)Classificationbyaccrualmethodforbaddebts
| Category | 2020.12.31 | 2019.12.31 | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Expectedcreditlossrate(%) | Amount | Proportion(%) | Amount | Creditlossrate(%) | |||
| Baddebtprovisionisaccruedaccordingtoindividualitems | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||
| Baddebtprovisionisaccruedaccordingtoportfolios | ||||||||||||
| Including： | ||||||||||||
| Commercialacceptancebill | 16,898,148.02 | 100.00 | 84,490.74 | 0.50 | 16,813,657.28- | -- | -- | -- | -- | -- | ||
| Bankacceptance | -- | -- | -- | -- | -- | 40,424,601.97 | 100.00 | -- | -- | 40,424,601.97 | ||
| Total | 16,898,148.02 | 100.00 | 84,490.74 | 0.50 | 16,813,657.28 | 40,424,601.97 | 100.00 | -- | -- | 40,424,601.97 | ||
Note：
Accrualofbaddebtprovisionbyportfolio:
Portfolioaccrualitems:commercialacceptancebills
| Name | 2020.12.31 | 2019.12.31 | ||||
| Notesreceivable | Bad-debtprovision | Expectedcreditlossrate(%) | Notesreceivable | Bad-debtprovision | Expectedcreditlossrate(%) | |
| .Commercialacceptancebill | 16,898,148.02 | 84,490.74 | 0.50 | -- | -- | -- |
(4)Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod
| Amountofbad-debtprovision | |
| 2019.12.31 | |
| Currentaccrual | 84,490.74 |
| 2020.12.31 | 84,490.74 |
(6)Thereisnoactualwrite-offofnotesreceivableinthecurrentperiod
4.Accountreceivable
(1)Disclosurebyaging
| Aging | 2020.12.31 | 2019.12.31 |
| Within1year | 567,264,103.99 | 382,065,942.05 |
| 1-2years | 6,063,040.66 | 813,122.40 |
| 2-3years | 103,011.28 | 1,076.93 |
| 3-4years | 389.73 | 6,728.70 |
| 4-5years | 6,728.70 | 4,636,402.32 |
| Over5years | 12,483,245.35 | 7,930,426.56 |
| Subtotal | 585,920,519.71 | 395,453,698.96 |
| Less：Baddebtprovision | 38,610,301.81 | 30,128,669.58 |
| Total | 547,310,217.90 | 365,325,029.38 |
(2)Disclosurebyclassificationaccordingtothebaddebtaccrualmethod
| Types | 2020.12.31 | 2019.12.31 | ||||||||
| Bookbalance | Bad-debtprovision | Bookvalue | Bookbalance | Bad-debtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Expectedcreditlossrate(%) | Amount | Proportion(%) | Amount | Expectedcreditlossrate(%) | |||
| Baddebtprovisionisaccruedaccordingtoindividualitems | 20,641,002.24 | 3.52 | 13,552,865.25 | 65.66 | 7,088,136.99 | 12,753,137.41 | 3.22 | 10,823,862.18 | 84.87 | 1,929,275.23 |
| Baddebtprovisionisaccruedaccordingtoportfolios | 565,279,517.47 | 96.48 | 25,057,436.56 | 4.43 | 540,222,080.90 | 382,700,561.55 | 96.78 | 19,304,807.40 | 5.04 | 363,395,754.15 |
| Total | 585,920,519.71 | 100.00 | 38,610,301.81 | 6.59 | 547,310,217.89 | 395,453,698.96 | 100.00 | 30,128,669.58 | 7.62 | 365,325,029.38 |
Accrualofbaddebtprovisionbysingleitem:：
| Unitname | 2020.12.31 |
| Bookbalane | Bad-debtprovision | Expectedcreditlossrate(%) | Accrualreason | |
| DongguanXiangtengNewMaterialTechnologyCo.,Ltd. | 6,961,050.25 | 397,710.96 | 5.71 | Thereisadisputebetweenthetwopartiesthatthenetrecoveryafterdeductingtheamountpayableisextremelyunlikelyandbaddebtshavebeenfullyaccruedonthenetportion |
| DongguanYaxingSemiconductorCo.,Ltd. | 2,797,016.81 | 2,797,016.81 | 100.00 | Thecreditperiodisexceededbyalongtime,andthepossibilityofrecoveryisextremelyslim |
| DongguanFairLCDCo.,Ltd. | 1,698,449.31 | 1,698,449.31 | 100.00 | Thecreditperiodisexceededbyalongtime,andthepossibilityofrecoveryisextremelyslim |
| GuangdongRuiliBaolaiTechnologyCo.,Ltd. | 1,298,965.36 | 1,298,965.36 | 100.00 | Thecreditperiodisexceededbyalongtime,andthepossibilityofrecoveryisextremelyslim |
| JiangsuXiangtengNewMaterialCo.,Ltd. | 1,049,595.40 | 524,797.70 | 50.00 | Thecreditperiodisexceededbyalongtime,andthepossibilityofrecoveryisextremelyslim |
| Totalofotherindividualaccrualunits | 6,835,925.11 | 6,835,925.11 | 100.00 | Thecreditperiodisexceededbyalongtime,andthepossibilityofrecoveryisextremelyslim |
| Total | 20,641,002.24 | 13,552,865.25 | 65.66 |
Accrualofbaddebtprovisionbyportfolio:
Portfolioaccrualitems:
| 2020.12.31 | 2019.12.31 | |||||
| Receivable | Bad-debtprovision | Expectedcreditlossrate(%) | Receivable | Bad-debtprovision | Expectedcreditlossrate(%) | |
| Within1year | 564,591,259.21 | 24,862,108.87 | 4.40 | 382,032,402.05 | 19,101,620.10 | 5.00 |
| 1-2years | 688,258.26 | 195,327.69 | 28.38 | 668,159.50 | 203,187.30 | 30.41 |
| Total | 565,279,517.47 | 25,057,436.56 | 4.43 | 382,700,561.55 | 19,304,807.40 | 5.04 |
(3)Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod
| Amountofbad-debtprovision | ||
| 2019.12.31 | 30,128,669.58 | |
| AdjustmentamountforthefirstimplementationoftheNewIncomeStandards | ||
| -- | ||
| 2020.01.01 | 30,128,669.58 |
| Currentaccrual | 8,481,632.23 |
| Withdrawalorreversalincurrentperiod | -- |
| 2020.12.31 | 38,610,301.81 |
(4)Thereisnoaccountreceivableactuallywrittenoffinthecurrentperiod
(5)Thetopfiveunitsoftheclosingbalanceofaccountsreceivablecollectedbythearrears
| Unitname | Natureofpayment | Otherreceivableclosingbalance | Aging | Proportionoftotalclosingbalanceofotherreceivables(%) | Bad-debtprovisionClosingbalance |
| Top1 | Goods | 132,428,291.01 | Within1year | 22.60% | 5,840,087.63 |
| Top2 | Goods | 68,516,402.40 | Within1year | 11.69% | 3,021,573.35 |
| Top3 | Goods | 51,794,178.25 | Within1year | 8.84% | 2,284,123.26 |
| Top4 | Goods | 39,315,045.56 | Within1year | 6.71% | 1,733,793.51 |
| Top5 | Goods | 38,777,319.65 | Within1year | 6.62% | 1,710,079.80 |
| Total | -- | 330,831,236.87 | -- | 56.46% | 14,589,657.55 |
(6)Noaccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
(7)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivable
5.Receivablefinancing
| Items | 2020.12.31 | 2019.12.31 |
| Notesreceivable | 102,051,314.08 | 17,933,597.98 |
SomesubsidiariesoftheCompanydiscountandendorsesomebankacceptancebillsaccordingtotheneedsoftheirdailyfundmanagement,thereforethebankacceptancebillsofthesubsidiariesareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.
ThereisnosinglebankacceptancebillwithimpairmentprovisionoftheCompany.OnDecember31,2020,theCompanyconsideredthattherewasnosignificantcreditriskinthebankacceptancebillsheldbyit,andtherewouldbenosignificantlossduetobankdefault.
6.Prepayments
(1)Disclosurebyage
| Aging | 2020.12.31 | 2019.12.31 | ||
| Amount | Proportion% | Amount | Proportion% | |
| Within1year | 14,934,263.03 | 88.35 | 16,750,558.60 | 90.82 |
| 1-2years | 557,043.06 | 3.30 | 729,266.20 | 3.95 |
| 2-3years | 540,748.42 | 3.20 | 15,494.14 | 0.08 |
| Over3years | 870,461.88 | 5.15 | 950,538.59 | 5.15 |
| Total | 16,902,516.39 | 100.00 | 18,445,857.53 | 100.00 |
Note:AsofDecember31,2020,thereisnolargeprepaymentformorethan1yearinthebalanceofprepayments.
(2)ThetopfiveendingbalancesofprepaymentscollectedaccordingtoprepaidobjectstotaledRMB12,005,147.74,accountingfor71.03%ofthetotalclosingbalancesofprepayments
7.Otherreceivale
| Items | 2020.12.31 | 2019.12.31 | |
| Interestreceivable | -- | 7,610,043.19 | |
| Otherreceivavble | 5,265,002.71 | 4,830,717.94 | |
| Total | 5,265,002.71 | 12,440,761.13 | |
(1)Interestreceivable
①Categoryofinterestreceivable
| Items | 2020.12.31 | 2019.12.31 | |
| Fixeddeposit | -- | 109,425.24 | |
| Structuredeposit | -- | 7,500,617.95 | |
| Subtotal | -- | 7,610,043.19 | |
| Less：Baddebtprovision | -- | -- | |
| Total | -- | 7,610,043.19 | |
(2)Otherreceivable
1Categoryofinterestreceivable
| Aging | 2020.12.31 | 2019.12.31 | |
| Within1year | 5,011,410.31 | 2,250,037.41 | |
| 1-2years | 550,486.21 | 1,213,773.48 | |
| 2-3years | 697,124.67 | 647,494.79 | |
| 3-4years | 173,007.52 | 1,837,174.29 | |
| 4-5years | 1,802,920.64 | 1,015,782.04 | |
| Over5years | 14,827,417.02 | 13,835,408.91 | |
| Subtotal | 23,062,366.37 | 20,799,670.92 |
| Less：Baddebtprovision | 17,797,363.66 | 15,968,952.98 |
| Total | 5,265,002.71 | 4,830,717.94 |
Otheraccountsreceivableclassifiedbythenatureofaccounts
| Items | 2020.12.31 | 2019.12.31 |
| Bookbalance | BookBalance | |
| Exportrebate | 1,658,146.29 | 1,191,949.50 |
| Unitaccount | 16,369,395.10 | 15,674,175.33 |
| Deposit | 2,585,585.87 | 2,435,689.74 |
| ReservefundandstaffloansLoans | 379,477.97 | 428,019.47 |
| Other | 2,069,761.14 | 1,069,836.88 |
| Subtotal | 23,062,366.37 | 20,799,670.92 |
| Less：Baddebtprovision | 17,797,363.66 | 15,968,952.98 |
| Total | 5,265,002.71 | 4,830,717.94 |
3Bad-debtprovision
Attheendoftheperiod,baddebtprovisioninthefirststage:
| Types | BookBalance | Bad-debtprovision | Bookvalue |
| Baddebtprovisionaccruedbyagingportfol | 5,838,599.72 | 573,597.01 | 5,265,002.71 |
| Total | 5,838,599.72 | 573,597.01 | 5,265,002.71 |
Attheendoftheperiod,theCompanydoesnothaveinterestreceivable,dividendreceivableandotherreceivablesinthesecondstage;
Attheendoftheperiod,baddebtprovisioninthethirdstage:
| Types | BookBalance | Bad-debtprovision | Bookvalue | Reason |
| Baddebtprovisionisaccruedaccordingtoindividualitems | 17,223,766.65 | 17,223,766.65 | -- | Longagingandlowpossibilityofrecovery |
| Total | 17,223,766.65 | 17,223,766.65 | -- |
OnDecember31,2019,baddebtprovisionsareasfollows:
Baddebtprovisioninthefirststage:
| Types | BookBalance | Bad-debtprovision | Bookvalue |
| Baddebtaccruedbyagingportfolios | 6,406,385.55 | 1,575,667.61 | 4,830,717.94 |
| Total | 6,406,385.55 | 1,575,667.61 | 4,830,717.94 |
AsofDecember31,2019,theCompanyhasnointerestreceivable,dividendreceivableandotherreceivablesinthesecondstage.AsofDecember31,2019,，Baddebtprovisioninthethirdstage:
| Types | BookBalance | Bad-debtprovision | Bookvalue | Reason |
| Baddebtprovisionisaccruedaccordingtoindividualitems | 14,393,285.37 | 14,393,285.37 | -- | Longagingandlowpossibilityofrecovery |
| Total | 14,393,285.37 | 14,393,285.37 | -- |
4Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatDecember31,2019 | 1,575,667.61 | -- | 14,393,285.37 | 15,968,952.98 |
| BalanceasatDecember31,2019Incurrent | -- | -- | -- | -- |
| ——TransfertostageII | -- | -- | -- | -- |
| ——TransfertostageIII | -1,059,367.39 | -- | 1,059,367.39 | -- |
| ——TransfertostageII | -- | -- | -- | -- |
| ——TransfertostageI | -- | -- | -- | -- |
| Provisioninthecurrentperiod | 57,296.79 | -- | 1,771,113.89 | 1,828,410.68 |
| Turnbackinthecurrentperiod | -- | -- | -- | -- |
| Resellerinthecurrentperiod | -- | -- | -- | -- |
| Write-offinthecurrentperiod | -- | -- | -- | -- |
| Other | -- | -- | -- | -- |
| BalanceasatDecember31,2020 | 573,597.01 | -- | 17,223,766.65 | 17,797,363.66 |
⑤Otheraccountreceivablesactuallycancelafterwrite-off:Nil
⑥Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance | |
| Top1 | Unitaccount | 11,389,044.60 | Over5years | 49.38% | 11,389,044.60 | |
| Top2 | Unitaccount | 1,800,000.00 | 4-5years | 7.80% | 1,800,000.00 | |
| Top3 | Unitaccount | 1,100,000.00 | Within1year | 4.77% | 55,000.00 | |
| Top4 | Unitaccount | 1,018,295.37 | 1-2years，2-3years,3-4years | 4.42% | 349,497.32 | |
| Top5 | Deposit | 980,461.06 | Over5years | 4.25% | 980,461.06 | |
| Total | -- | 16,287,801.03 | -- | 70.63% | 14,574,002.98 | |
⑦NoAccountsreceivableinvolvedwithgovernmentsubsidies
⑧Nootheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
⑨Theamountoftheassetsandliabilitiesformedbythenotransferandthecontinuesinvolvementofotheraccountsreceivable
8.Inventory
（1）Inventoriestypes
| Items | 2020.12.31 | 2019.12.31 | |||||
| Bookbalance | Provisionforbaddebts | Bookvalue | Bookbalance | Provisionforbaddebts | Bookvalue | ||
| Rawmaterials | 258,191,196.82 | 13,788,646.60 | 244,402,550.22 | 212,371,911.48 | 31,148,714.05 | 181,223,197.43 | |
| Processingproducts | 132,780,479.72 | 43,914,789.90 | 88,865,689.82 | 135,636,148.29 | 53,692,060.27 | 81,944,088.02 | |
| Finishedproduct | 2,715,845.96 | -- | 2,715,845.96 | 5,962,105.18 | -- | 5,962,105.18 | |
| Semi-finishedproduct | 131,069,647.77 | 14,613,640.62 | 116,456,007.15 | 130,209,635.92 | 36,196,938.50 | 94,012,697.42 | |
| Goodsintransit | 524,698.46 | -- | 524,698.46 | 1,618,894.41 | 48,491.27 | 1,570,403.14 | |
| Commissionedmaterials | 31,040,280.45 | 3,157,490.62 | 27,882,789.83 | 30,643,409.60 | 3,637,965.67 | 27,005,443.93 | |
| Total | 556,322,149.18 | 75,474,567.74 | 480,847,581.44 | 516,442,104.88 | 124,724,169.76 | 391,717,935.12 | |
（2）InventoryImpairmentprovision
| Items | 2020.01.01 | Increasedincurrent | Decreasedincurrentperiod | 2020.12.31 | ||
| Provision | Other | Transferredback | Other | |||
| Rawmaterials | 31,148,714.05 | 3,666,817.13 | -- | 21,026,884.58 | -- | 13,788,646.60 |
| Finishedproduct | 53,692,060.27 | 27,366,959.59 | -- | 37,144,229.96 | -- | 43,914,789.90 |
| Semi-finishedproduct | 36,196,938.50 | 34,909,052.14 | -- | 56,492,350.02 | -- | 14,613,640.62 |
| Goodsintransit | 48,491.27 | -- | -- | 48,491.27 | -- | -- |
| Commissionedmaterials | 3,637,965.67 | -- | -- | 480,475.05 | -- | 3,157,490.62 |
| Total | 124,724,169.76 | 65,942,828.86 | -- | 115,192,430.88 | -- | 75,474,567.74 |
InventoryImpairmentprovision（Continue)
| Items | Specificbasisfordeterminingthenetrealizablevalue/remainingconsiderationandthecosttobeincurred | ReversalorresaleincurrentperiodReasonforprovisionforinventor |
| Rawmaterials | Netrealizablevalueislowerthaninventorycost | Useofrelevantmaterials |
| Finishedproduct | Netrealizablevalueislowerthaninventorycost | Salesofrelatedfinishedproducts |
| Semi-finishedproduct | Netrealizablevalueislowerthaninventorycost | Salesofrelatedsemi-finishedproducts |
| Goodsintransit | Netrealizablevalueislowerthaninventorycost | Salesofrelatedfinishedproducts |
| Commissionedmaterials | Netrealizablevalueislowerthaninventorycost | Collectionofrelevantconsignedprocessingmaterials |
9.Othercurrentassets
| Items | 2020.12.31 | 2019.12.31 | |
| AfterthedeductionofinputVAT | 77,482,083.47 | 140,821,609.72 | |
| Total | 77,482,083.47 | 140,821,609.72 | |
10.Long-termequityinvestment
| Investees | 2019.12.31 | Increase/decrease | 2020.12.31 | Closingbalanceofimpairmentprovision | |||||||
| Additionalinvestment | Negativeinvestment | Investmentprofitandlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| I.Jointventure | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,098,833.77 | 698,189.37 | 10,797,023.14 | ||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 129,623,072.69 | -1,716,907.52 | 127,906,165.17 | ||||||||
| Subtotal | 139,721,906.46 | -1,018,718.15 | 138,703,188.31 | ||||||||
| 2.AffiliatedCompany | |||||||||||
| ShenzhenChanglianfaPrinting&dyeingCompany | 2,450,676.14 | 255,586.24 | 2,706,262.38 | ||||||||
| JordanGarmentFactory | 902,269.19 | -904,422.99 | 2,153.80 | ||||||||
| HongkongYehuiInternationalCo.,Ltd. | 9,135,077.93 | -2,297,211.37 | -318,180.02 | 6,519,686.54 | |||||||
| Subtotal | 12,488,023.26 | -2,946,048.12 | -316,026.22 | 9,225,948.92 | |||||||
| Total | 152,209,929.72 | -3,964,766.27 | -316,026.22 | 147,929,137.23 | |||||||
11.Otherequityinstrumentsinvestment
| Items | 2020.12.31 | 2019.12.31 |
| FUAO（000030） | 10,129,390.84 | 6,568,923.76 |
| ShenzhenDailishiUnderwearCo.,Ltd. | 12,315,939.61 | 12,315,939.61 |
| UnionDevelopmentGroupCo.,Ltd. | 152,469,200.00 | 152,469,200.00 |
| ShenzhenXiangjiangTradeCo.,Ltd. | -- | 7,474,900.00 |
| ShenzhenXinfangKnittingCo.,Ltd. | 2,227,903.00 | 2,227,903.00 |
| JintianIndustry（Group）Co.,Ltd. | -- | -- |
| ShenzhenJiafengTextileIndustryCo.,ltd. | -- | -- |
| ShenzhenXieliAutoCo.,Ltd. | -- | 25,760,086.27 |
| ShenzhenSouthTextileCo.,Ltd. | 13,464,994.09 | 13,464,994.09 |
| ChangxingJunyingInvestmentPartnership | -- | 28,500,000.00 |
| Total | 190,607,427.54 | 248,781,946.73 |
AstheaboveitemsareinvestmentsthattheCompanyplanstoholdforalongtimeforstrategicpurposes,theCompanydesignatesthemasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.
| Items | Recognizeddividendincome | Accumulatingincome | Accumulatinglosses | Amountofothercomprehensiveincometransferredtoretainedearnings | Reason |
| Fuao（000030） | 234,604.42 | 1,188,792.53 | |||
| ShenzhenDailishiUnderwearCo.,Ltd. | 1,037,735.85 | 9,756,083.35 | |||
| UnionDevelopmentGroupCo.,Ltd. | 208,000.00 | 149,869,200.00 | |||
| ShenzhenXiangjiangTradeCo.,Ltd. | 358,702.05 | 7,314,900.00 | 4,694,359.48 | Disposal | |
| ShenzhenXinfangKnittingCo.,Ltd. | 156,000.00 | 1,703,903.00 | |||
| JintianIndustry（Group）Co.,Ltd. | 14,831,681.50 | ||||
| ShenzhenJiafengTextileIndustryCo.,ltd. | 16,800,000.00 | ||||
| ShenzhenXieliAutoCo.,Ltd. | 21,516,380.83 | Disposal | |||
| ShenzhenSouthTextileCo.,Ltd. | 951,550.47 | 11,964,994.09 |
12.Othernon-currentfinancialassets
| Types | 2020.12.31 | 2019.12.31 |
| Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 30,650,943.40 | -- |
| Total | 30,650,943.40 | -- |
13.Investmentrealestate
(1)Investmentrealestateadoptedthecostmeasurementmode
| Items | House,Building |
| I.Originalprice |
| 1.2019.12.31 | 257,183,260.74 |
| 2.Increaseinthecurrentperiod | 4,559,679.79 |
| (1)Purchase | 4,559,679.79 |
| 3.Decreasedamountoftheperiod | -- |
| 4.2020.12.31 | 261,742,940.53 |
| II.Accumulatedamortization | |
| 1.2019.12.31 | 144,452,939.84 |
| 2.Increasedamountoftheperiod | 6,717,528.77 |
| (1)Withdrawal | 6,717,528.77 |
| 3.Decreasedamountoftheperiod | -- |
| 4.2020.12.31 | 151,170,468.61 |
| IV.Bookvalue | |
| 1.Bookvalueatperiod-end | 110,572,471.92 |
| 2.Bookvalueatperiod-beginning | 112,730,320.90 |
(2)Fixedassetswithoutpropertyrightcertificate
| Items | Bookvalue | Reasonsforfailingtoobtainthepropertyrightcertificate |
| House,Building | 11,115,759.53 | Unabletoapplyforwarrantsduetohistoricalreasons |
14.Fixedassets
| Items | 2020.12.31 | 2019.12.31 |
| Fixedassets | 790,183,905.38 | 903,229,077.83 |
| Total | 790,183,905.38 | 903,229,077.83 |
1.Fixedassets
| Items | Houses&buildings | Machineryequipment | Transportations | Otherequipment | Total |
| I.Originalprice |
| 1.2019.12.31 | 548,661,452.06 | 1,017,917,028.03 | 10,160,884.32 | 39,760,701.71 | 1,616,500,066.12 |
| 2.Increasedamountoftheperiod | 105,312.66 | 1,971,675.05 | 1,721,088.34 | 3,144,439.59 | 6,942,515.64 |
| (1)Purchase | 105,312.66 | 1,971,675.05 | 1,721,088.34 | 3,144,439.59 | 6,942,515.64 |
| 3.Decreasedamountoftheperiod | 2,869,833.47 | 2,195,270.12 | 502,243.58 | 484,468.16 | 6,051,815.33 |
| （1）Disposal | 2,759,267.00 | 2,090,183.17 | 500,725.00 | 439,068.16 | 5,789,243.33 |
| （2）Other | 110,566.47 | 105,086.95 | 1,518.58 | 45,400.00 | 262,572.00 |
| 4.2020.12.31 | 545,896,931.25 | 1,017,693,432.96 | 11,379,729.08 | 42,420,673.14 | 1,617,390,766.43 |
| II.Accumulateddepreciation | |||||
| 1.2019.12.31 | 140,171,992.87 | 545,911,130.40 | 2,841,269.42 | 24,225,958.94 | 713,150,351.63 |
| 2.Increasedamountoftheperiod(1)Withdrawal | 20,033,362.68 | 86,571,277.07 | 855,148.09 | 3,262,794.71 | 110,722,582.55 |
| (1)Withdrawal | 20,033,362.68 | 86,571,277.07 | 855,148.09 | 3,262,794.71 | 110,722,582.55 |
| （2）Other | |||||
| 3.Decreaseinthereportingperiod | 286,963.56 | 1,964,902.60 | 479,386.65 | 404,469.05 | 3,135,721.86 |
| （1）Disposal | 286,963.56 | 1,964,902.60 | 479,386.65 | 404,469.05 | 3,135,721.86 |
| （2）Other | |||||
| 4.2020.12.31 | 159,918,391.99 | 630,517,504.87 | 3,217,030.86 | 27,084,284.60 | 820,737,212.32 |
| III.Impairmentprovision | |||||
| 1.2019.12.31 | 120,636.66 | -- | -- | -- | 120,636.66 |
| 2.Increaseinthereportingperiod | -- | 6,373,080.81 | -- | 96,567.92 | 6,469,648.73 |
| (1)Withdrawal | -- | 6,373,080.81 | -- | 96,567.92 | 6,469,648.73 |
| （2）Other | -- | -- | -- | -- | -- |
| 3.Decreaseinthereportingperiod | 120,636.66 | -- | -- | -- | 120,636.66 |
| （1）Disposal | -- | -- | -- | -- | -- |
| （2）Other | 120,636.66 | -- | -- | -- | 120,636.66 |
| 4.2020.12.31 | -- | 6,373,080.81 | -- | 96,567.92 | 6,469,648.73 |
| IV.Bookvalue | |||||
| 1.2020.12.31Bookvalue | 385,978,539.26 | 380,802,847.28 | 8,162,698.22 | 15,239,820.62 | 790,183,905.38 |
| 2.2019.12.31Bookvalue | 408,368,822.53 | 472,005,897.63 | 7,319,614.90 | 15,534,742.77 | 903,229,077.83 |
(2)Fixedassetswithoutpropertyrightcertificate
| Items | Bookvalue | Reasonsforfailingtoobtainthepropertyrightcertific |
| Housesandbuildings | 21,195,008.77 | Unabletoapplyforwarrantsduetohistoricalreasons |
15.Constructioninprogress
| Items | 2020.12.31 | 2019.12.31 |
| Constructioninprogress | 1,301,750,141.12 | 839,866,275.92 |
| Total | 1,301,750,141.12 | 839,866,275.92 |
（1）Constructioninprogress(1)Listofconstructioninprogress
| Items | 2020.12.31 | 2019.12.31 | ||||
| Bookbalance | Provisionfordevaluation | BookNetvalue | Bookbalance | Provisionfordevaluation | BookNetvalue | |
| IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7) | 1,301,693,689.12 | -- | 1,301,693,689.12 | 839,443,318.50 | -- | 839,443,318.50 |
| Other | 56,452.00 | -- | 56,452.00 | 422,957.42 | -- | 422,957.42 |
| Total | 1,301,750,141.12 | -- | 1,301,750,141.12 | 839,866,275.92 | -- | 839,866,275.92 |
（2）Changesofsignificantconstructioninprogress
| Name | 2019.12.31 | Increaseatthisperiod | Transferredtofixedassets | Otherdecrease | Capitalisationofinterestaccumulatedbalance | Including：Currentamountofcapitalizationofinterest | Capitalisationofinterestratio（%) | 2020.12.31 |
| IndustrializationprojectofpolaroidforsuperlargesizeTV | 839,443,318.50 | 462,250,370.62 | -- | -- | 3,940,565.29 | 3,940,565.29 | 4.41 | 1,301,693,689.12 |
| Total | 839,443,318.50 | 462,250,370.62 | -- | -- | 3,940,565.29 | 3,940,565.29 | 4.41 | 1,301,693,689.12 |
Changesofsignificantconstructioninprogress（Continuous）
| Name | Budget | Proportion(%) | Progressofwork | Sourceoffunds |
| IndustrializationprojectofpolaroidforsuperlargesizeTV(Line7) | 187,477.00million | 78.34% | Basiccompletionofcivilengineering,primaryacceptanceofcleanareaofmainproductionworkshop;processequipment,extensionmachine,coatingmachine,counterinspectionmachineandothermainequipmenthavebeeninstalledandcompletedandintothecommissioningstage,theoverallcommissioningisexpectedtobecompletedinMarch2021intotrialproduction | Self |
| Total | 187,477.00million | 78.34% |
16.Intangibleassets
(1)Information
| Items | Landuseright | Software | Patentright | Total |
| I.Originalprice | ||||
| 1.2019.12.31 | 48,258,239.00 | 2,936,607.54 | 11,825,200.00 | 63,020,046.54 |
| 2.Increaseinthecurrentperiod | ||||
| (1)Purchase | 1,143,346.16 | 1,143,346.16 | ||
| 3.Decreasedamountoftheperiod | ||||
| 4.2020.12.31 | 48,258,239.00 | 4,079,953.70 | 11,825,200.00 | 64,163,392.70 |
| II.Accumulatedamortization | ||||
| 1.2019.12.31 | 12,591,751.27 | 2,085,098.93 | 11,825,200.00 | 26,502,050.20 |
| 2.Increaseinthecurrentperiod | ||||
| (1)Withdrawal | 895,440.00 | 716,923.59 | 1,612,363.59 | |
| 3.Decreasedamountoftheperiod | ||||
| 4.2020.12.31 | 13,487,191.27 | 2,802,022.52 | 11,825,200.00 | 28,114,413.79 |
| III.Impairmentprovision |
| 1.2019.12.31 | ||||
| 2.Increaseinthecurrentperiod | ||||
| 3.Decreasedamountoftheperiod | ||||
| 4.2020.12.31 | ||||
| 4.Bookvalue | ||||
| 1.2020.12.31Bookvalue | 34,771,047.73 | 1,277,931.18 | -- | 36,048,978.91 |
| 2.2019.12.31Bookvalue | 35,666,487.73 | 851,508.61 | -- | 36,517,996.34 |
17.Goodwill
(1)Originalbookvalueofgoodwill
| Nameoftheinvesteesortheeventsformedgoodwill | 2019.12.31 | Increase | Decrease | 2020.12.31 |
| SAPOPhotoelectric | 9,614,758.55 | 9,614,758.55 | ||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,167,341.21 | 2,167,341.21 | ||
| ShenzhenShenfangImportandExportCo.,Ltd. | 82,246.61 | 82,246.61 | ||
| Total | 11,864,346.37 | 11,864,346.37 |
（2）Impairmentofgoodwill
| Investee | 2019.12.31 | Increasedatthisperiod | .Decreasedatthisperiod | 2020.12.31 |
| SAPOPhotoelectric | 9,614,758.55 | 9,614,758.55 | ||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 2,167,341.21 | 2,167,341.21 | ||
| ShenzhenShenfangImportandExportCo.,Ltd. | 82,246.61 | 82,246.61 | ||
| Total | 11,864,346.37 | 11,864,346.37 |
18.Longtermamortizeexpenses
| Items | 2019.12.31 | Increaseinthisperiod | Decreasedatthisperiod | 2020.12.31 | |
| Amortizedexpenses | Otherloss | ||||
| Decorationfee | 96,994.84 | 40,000.00 | 25,452.99 | 111,541.85 | |
| Renovationfee | 1,595,771.58 | 330,816.84 | 1,264,954.74 | ||
| Other | 999,984.25 | 726,329.58 | 226,248.89 | - | 1,500,064.94 |
| Total | 2,692,750.67 | 766,329.58 | 582,518.72 | 2,876,561.53 | |
19.Deferredincometaxassets/deferredincometaxliabilities
（1）Detailsoftheun-recognizeddeferredincometaxassets
| Items | 2020.12.31 | 2019.12.31 | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deferredincometaxassets | ||||
| Assetsdepreciationreserves | 18,865,669.84 | 4,709,761.70 | 17,933,263.39 | 4,478,077.03 |
| Unattainedinternalsalesprofits | 2,413,307.05 | 361,996.06 | 2,502,421.73 | 375,363.26 |
| Changesinfairvalueofinvestmentsinotherequityinstruments | -- | -- | 2,371,674.55 | 592,918.64 |
| Restrictedstockrepurchaseinterest | 686,670.00 | 171,667.50 | 686,670.00 | 171,667.50 |
| Subtotal | 21,965,646.89 | 5,243,425.26 | 23,494,029.67 | 5,618,026.43 |
| Deferredincometaxliabilities | ||||
| Thedifferencebetweentheinitialrecognitioncostandtaxbaseoflong-termequityinvestment | 62,083,693.36 | 15,520,923.34 | 77,651,921.36 | 19,412,980.34 |
| Changesinfairvalueofinvestmentsinotherequityinstruments | 174,482,972.97 | 43,620,743.24 | 202,125,461.26 | 50,531,365.32 |
| Total | 236,566,666.33 | 59,141,666.58 | 279,777,382.62 | 69,944,345.66 |
(2)Detailsoftheun-recognizeddeferredincometaxliabilities
| Items | 2020.12.31 | 2019.12.31 |
| Deductibletemporarydifference | 122,887,462.20 | 156,410,415.69 |
| Deductibleloss | 682,013,840.25 | 605,506,184.05 |
| Total | 804,901,302.45 | 761,916,599.74 |
(3)Deductiblelossesoftheun-recognizeddeferredincometaxassetwillexpireinthefollowingyears
| Year | 2020.12.31 | 2019.12.31 | Remark |
| 2021 | -- | 1,128,868.47 | |
| 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 | 22,594,586.97 | 22,594,586.97 |
| 2029 | 100,351,965.47 | 100,351,965.47 |
| 2030 | 77,636,524.67 | —— |
| Total | 682,013,840.25 | 605,506,184.05 |
20.Othernon-currentassets
| Items | 2020.12.31 | 2019.12.31 |
| Advancepaymentforequipmentfund | 47,483,219.83 | 3,079,321.10 |
| Certificateofdepositformorethan1year | 70,064,383.56 | -- |
| Other | 25,760,086.27 | -- |
| Total | 143,307,689.66 | 3,079,321.10 |
21.Accountspayable
| Items | 2020.12.31 | 2019.12.31 |
| Within1year | 325,354,275.46 | 238,370,055.75 |
| 1-2years | 1,912,000.86 | 196,392.86 |
| 2-3years | 96,543.25 | 1,691,830.35 |
| 3-4years | 1,093,369.87 | 37,402.40 |
| 4-5years | 37,402.40 | 35,075.05 |
| Over5years | 975,010.06 | 967,014.23 |
| Total | 329,468,601.90 | 241,297,770.64 |
NoSignificantaccountspayablethatagedoveroneyear
22.Advanceaccount
| Items | 2020.12.31 | 2019.12.31 |
| Within1year | 671,534.26 | 29,824,350.33 |
| 1-2years | -- | 16,004.11 |
| 2-3years | -- | 30,171.98 |
| Over3years | 639,024.58 | 659,591.20 |
| Total | 1,310,558.84 | 30,530,117.62 |
23.Contractliabilities
| Items | 2020.12.31 | 2019.12.31 |
| Goods | 200,000.00 | -- |
| Rentreceivedinadvance | 2,311,466.76 | -- |
| Less：Contractualliabilitieschargedtoothernon-currentliabilities | -- | -- |
| Total | 2,511,466.76 | -- |
24.PayableEmployeewage
| Items | 2019.12.31 | Increaseinthisperiod | Decreaseinthisperiod | 2020.12.31 |
| Short-termemployeebenefits | 38,556,180.20 | 188,713,147.25 | 171,626,777.92 | 55,642,549.53 |
| Post-employmentbenefits | -- | 7,080,075.35 | 7,080,075.35 | -- |
| Terminationbenefit | -- | 2,985,500.66 | 2,985,500.66 | -- |
| Total | 38,556,180.20 | 199,149,610.77 | 181,692,353.93 | 55,642,549.53 |
（1）Short-termremuneration
| Items | 2019.12.31 | Increaseinthisperiod | Decreaseinthisperiod | 2020.12.31 |
| Wages,bonuses,allowancesandsubsidies | 36,751,528.90 | 169,798,753.71 | 153,256,730.67 | 53,293,551.94 |
| Employeewelfare | -- | 6,351,145.22 | 6,310,052.02 | 41,093.20 |
| Socialinsurancepremiums | -- | 2,682,417.92 | 2,682,417.92 | -- |
| Including：1.Medicalinsurance | -- | 2,220,227.06 | 2,220,227.06 | -- |
| 2.Maternityinsurance | -- | 100,867.74 | 100,867.74 | -- |
| 3.Workinjuryinsurance | -- | 324,403.12 | 324,403.12 | -- |
| 4．Supplementarymedicalinsurance | -- | 36,920.00 | 36,920.00 | -- |
| Publicreservesforhousing | -- | 6,020,759.24 | 6,020,759.24 | -- |
| .Unionfundsandstaffeducationfee | 1,804,651.30 | 3,860,071.16 | 3,356,818.07 | 2,307,904.39 |
| Total | 38,556,180.20 | 188,713,147.25 | 171,626,777.92 | 55,642,549.53 |
（2）Definedcontributionplanslisted
| Items | 2019.12.31 | Increaseinthisperiod | Decreaseinthisperiod | 2020.12.31 |
| After-servicebenefits | -- | 7,080,075.35 | 7,080,075.35 | -- |
| 1.Basicold-ageinsurancepremiums | -- | 4,962,621.48 | 4,962,621.48 | -- |
| 2.Unemploymentinsurance | -- | 168,614.71 | 168,614.71 | -- |
| 3.Annuitypayment | -- | 1,948,839.16 | 1,948,839.16 | -- |
| Total | -- | 7,080,075.35 | 7,080,075.35 | -- |
25.TaxPayable
| Items | 2020.12.31 | 2019.12.31 |
| EnterpriseIncometax | 11,219,726.43 | 18,567,808.63 |
| IndividualIncometax | 469,169.71 | 441,485.02 |
| VAT | 286,928.75 | 2,992,712.57 |
| HousepropertyTax | 102,146.02 | 127,685.17 |
| CityConstructiontax | 48,751.30 | 209,489.81 |
| Educationsurcharge | 33,386.49 | 149,635.58 |
| Stamptax | 36,370.02 | 54,690.21 |
| Landusetax | 2,043.30 | 2,043.34 |
| Total | 12,198,522.02 | 22,545,550.33 |
26.Otherpayable
| Items | 2020.12.31 | 2019.12.31 |
| Otherpayable | 156,118,440.42 | 152,645,780.14 |
| Total | 156,118,440.42 | 152,645,780.14 |
（1）Otherpayable
| Items | 2020.12.31 | 2019.12.31 |
| Projectequipmentfunds | 32,713,413.76 | 36,025,975.90 |
| Unitcurrent | 48,394,939.72 | 51,891,693.06 |
| Deposit | 36,130,306.12 | 27,258,145.87 |
| Restrictivestockrepurchaseobligations | 7,844,373.00 | 16,825,673.40 |
| Other | 31,035,407.82 | 20,644,291.91 |
| Total | 156,118,440.42 | 152,645,780.14 |
27.Long-termborrowings
| Items | 2020.12.31 | Interestrateinterval | 2019.12.31 | Interestrateinterval |
| Mortgage+Deposit | 343,100,174.35 | 4.41% | -- | -- |
| Subtotal | 343,100,174.35 | -- | -- | -- |
| Less：Long-termborrowingsduewithin1year | -- | -- | -- | -- |
| Total | 343,100,174.35 | -- | -- | -- |
28.Deferredincome
| Items | 2019.12.31 | Increaseatthis | Decreaseatthis | 2020.12.31 | Reason |
| GovemmentSubsidy | 121,264,571.22 | 1,710,000.00 | 12,234,249.01 | 110,740,322.21 |
Note:SeeNoteXIV.2,GovernmentSubsidiesfordetailsofgovernmentsubsidiesincludedindeferredincome.
29.Stockcapital
| Items | 2019.12.31 | Changed（+，-） | 2020.12.31 | ||||
| Issuanceofnew | Bonusshares | Capitalizationof | Other | Subtotal | |||
| Totalshares | 509,338,429.00 | -1,566,150.00 | -1,566,150.00 | 507,772,279.00 | |||
Note:Thisyear,1,566,150.00restrictedshareswhichhavebeengrantedbutnotunlockedhavebeenrepurchasedandcancelled,andthesharecapitalhasbeenreducedbyRMB1,566,150.00,whichhasbeenverifiedbythesameaccounting
firm(specialgeneralpartnership),andthecapitalverificationreport(ZTYZi(2020)No.441ZC00334)wasissuedonSeptember11,2020.
30.Capitalreserve
| Items | 2019.12.31 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 2020.12.31 |
| Sharepremium | 1,839,805,031.94 | -- | 7,407,889.50 | 1,832,397,142.4443 |
| Other | 135,117,216.09 | -- | -- | 135,117,216.09 |
| Total | 1,974,922,248.03 | -- | 7,407,889.50 | 1,967,514,358.53 |
Note:ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.
31.Treasurystock
| Items | 2019.12.31 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 2020.12.31 |
| Treasurystock | 16,139,003.40 | -- | 8,613,565.20 | 7,525,438.20 |
Note:ThechangeofcapitalstockpremiuminthecurrentperiodisfromtherepurchaseandcancellationofsomerestrictedstocksgrantedbytheCompany'srestrictedstockincentiveplanin2017.
32.OtherComprehensiveincom
| Items | 2019.12.31 | Amountofcurrentperiod | 2020.12.31 | |||||
| Amountincurredbeforeincometax | Less：Amounttransferredintoprofitandlossinthecurrentperiodthatrecogniedintoothercomprehensiveincomeinpriorperiod | Less：Priorperiodincludedinothercompositeincometransfertoretainedincomeinthecurrentperiod | Less：Incometaxexpenses | After-taxattributetotheparentcompany | After-taxattributetominorityshareholder | |||
| 1.Othercomprehensiveincomethatcannotbereclassifiedinthelossandgaininthe | 118,183,658.54 | -1,925,707.92 | 16,137,285.62 | 890,116.75 | -18,953,110.29 | -- | 99,230,548.25 | |
| future | ||||||||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 118,183,658.54 | -1,925,707.92 | 16,137,285.62 | 890,116.75 | -18,953,110.29 | -- | 99,230,548.25 | |
| 2.Othercomprehensiveincomereclassifiabletoprofitorlossinsubsequentperiods | 1,554,124.77 | -316,026.22 | -- | -- | -316,026.22 | -- | 1,238,098.55 | |
| Translationdifferencesoffinancialstatementsdenominated | 1,554,124.77 | -316,026.22 | -- | -- | -316,026.22 | -- | 1,238,098.55 | |
| 2.EnergyMenthod | ||||||||
| Totalofothercomprehensiveincome | 119,737,783.31 | -2,241,734.14 | 16,137,285.62 | 890,116.75 | -19,269,136.51 | -- | 100,468,646.80 |
33.Surplusreserves
| Items | 2019.12.31 | Adjustment | 2020.01.01 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 2020.12.31 |
| Statutorysurplusreserve | 90,596,923.39 | -- | -- | 4,346,566.05 | 94,943,489.44 |
34.Retainedprofits
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Proportion% |
| Beforeadjustments:Retainedprofitsattheperiodend | 49,307,764.03 | -57,774,473.41 | -- |
| Adjustment:Totalunappropriatedprofitsatthebeginningoftheyear | -- | 35,779,955.53 | -- |
| Afteradjustments:Retainedprofitsattheperiodbeginning | 49,307,764.03 | -21,994,517.88 | -- | |
| Add:NetprofitattributabletoownersoftheCompanyfortheperiod | 37,267,995.74 | 19,679,910.43 | -- | |
| Otherconsolidatedearningscarriedforwardtoretainedearningsforthecurrentyear | 20,362,209.15 | 58,238,941.03 | -- | |
| Less:Appropriationtostatutorysurplusreserve | 3,888,292.80 | 6,616,569.55 | 10% | |
| Retainedprofitsattheperiodend | 103,049,676.12 | 49,307,764.03 | -- | |
35.Businessincome,Businesscost
(1)Businessincome,Businesscost
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusinesscost | 2,097,432,885.06 | 1,808,092,705.48 | 2,099,197,694.45 | 1,915,880,730.30 |
| Otherbusinesscost | 11,531,802.74 | 6,205,689.54 | 58,987,161.26 | 57,614,878.05 |
| Total | 2,108,964,687.80 | 1,814,298,395.02 | 2,158,184,855.71 | 1,973,495,608.35 |
（2）Mainbusiness（Industry）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| Domesticandforeigntrade | -- | -- | 517,020,991.54 | 483,603,729.67 |
| Manufacturing | 2,012,255,019.03 | 1,786,199,780.24 | 1,475,804,647.66 | 1,408,148,827.10 |
| Propertymanagement,leasing | 85,177,866.03 | 21,892,925.24 | 106,372,055.25 | 24,128,173.53 |
| Subtotal | 2,097,432,885.06 | 1,808,092,705.48 | 2,099,197,694.45 | 1,915,880,730.30 |
（3）Mainbusiness（Production）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| Propertyandrentalincome | 85,177,866.03 | 21,892,925.24 | 106,372,055.25 | 24,128,173.53 |
| Textileincome | 60,503,325.78 | 48,466,207.78 | 46,047,351.10 | 39,166,964.15 |
| Polaroidincome | 1,951,751,693.25 | 1,737,733,572.46 | 1,429,757,296.56 | 1,368,981,862.95 |
| Tradeincome | -- | -- | 517,020,991.54 | 483,603,729.67 |
| Subtotal | 2,097,432,885.06 | 1,808,092,705.48 | 2,099,197,694.45 | 1,915,880,730.30 |
（4）MainBusiness（Area）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | |||
| Businessincome | Businesscost | Businessincome | Businesscost | ||
| Domestic | 1,756,659,062.01 | 1,526,209,625.21 | 1,922,327,308.13 | 1,751,836,922.09 | |
| Oversea | 340,773,823.05 | 281,883,080.27 | 176,870,386.32 | 164,043,808.21 | |
| Total | 2,097,432,885.06 | 1,808,092,705.48 | 2,099,197,694.45 | 1,915,880,730.30 | |
36.Businesstaxandsubjoin
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Housetaxes | 4,338,584.18 | 5,772,193.68 |
| Urbanconstructiontax | 718,695.23 | 665,327.79 |
| Educationsurcharge | 517,483.70 | 477,821.51 |
| Other | 1,772,362.54 | 1,550,800.42 |
| Total | 7,347,125.65 | 8,466,143.40 |
37.Salesexpenses
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 12,958,215.67 | 3,900,045.35 |
| Transportationchanges | -- | 6,328,597.94 |
| Businessexpenses | 668,407.23 | 380,985.91 |
| Sell | 12,697,476.62 | 3,077,231.50 |
| Other | 2,320,131.35 | 7,098,217.96 |
| Total | 28,644,230.87 | 20,785,078.66 |
Note:TheincreaseinsalesexpensesandwagesthisyearismainlyduetothedepartmentadjustmentoftheCompanyandthebetterbenefitofthesubsidiarySAPOPhotoelectric;Theincreaseofsalesservicefeeismainlyduetotheincreaseofnewcustomers,whichleadstotheincreaseofnewagents.
38.Administrativeexpenses
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 74,848,348.24 | 57,632,391.81 |
| Depreciationoffixedassets | 9,794,203.66 | 11,714,741.86 |
| Waterandelectricity | 2,576,447.96 | 2,736,839.25 |
| Intermediaryorgan | 3,271,775.61 | 6,188,892.57 |
| Intangibleassetsamortization | 1,612,363.59 | 1,362,819.51 |
| Travelexpenses | 408,221.21 | 1,506,687.67 |
| Officeexpenses | 946,055.89 | 878,072.35 |
| Businessentertainment | 615,454.09 | 922,668.63 |
| Lawsuitexpenses | 144,161.32 | 327,254.72 |
| Repaircharge | 1,366,609.60 | 2,030,445.26 |
| Propertyinsurance | 380,689.81 | 483,245.82 |
| Other | 9,130,603.38 | 11,086,782.92 |
| Total | 105,094,934.36 | 96,870,842.37 |
39.R&Dcosts
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Wage | 13,177,489.03 | 13,430,653.87 |
| Material | 49,679,847.18 | 34,839,486.54 |
| Depreciation | 2,984,978.79 | 2,782,174.41 |
| Fuel&Power | 1,017,795.21 | 1,447,036.66 |
| Travelexpenses | 226,949.44 | 356,165.02 |
| Other | 73,904.57 | 323,197.83 |
| Total | 67,160,964.22 | 53,178,714.33 |
40.FinancialExpenses
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Interestexpenses | 4,175,380.96 | 4,893,018.58 |
| Less：InterestCapitalization | 3,940,565.29 | |
| Interestincome | -3,702,735.59 | -8,593,894.58 |
| Exchangeloss | 8,108,404.80 | 16,760,131.65 |
| Feesandother | 3,647,403.40 | 2,803,543.99 |
| Total | 8,287,888.28 | 15,862,799.64 |
41.Otherincome
| Subsidyitems(sourceofotherincome) | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Relatedtoassets/Relatedtoincome |
| Amortizationoftextilespecialfunds | 142,857.16 | 142,857.16 | Relatedtoassets |
| AmortizationofsubsidyfundsforindustrializationitemsofTFT-LCDpolarizer销 | 1,300,000.00 | 1,300,000.00 | Relatedtoassets |
| Amortizationofsubsidyfundsfornarrowline(Line5)ofTFT-LCDpolarizerphaseIproject | 500,000.00 | 500,000.00 | Relatedtoassets |
| Amortizationforpurchasingimportedequipmentandtechnicalsubsidies | 175,090.20 | 175,090.20 | Relatedtoassets |
| AmortizationofinnovationandventurefundsforTFT-LCDpolarizerphaseIproject | 50,000.00 | 50,000.00 | Relatedtoassets |
| AmortizationofinnovationandventurefundsinShenzhenpolarizedmaterialsandtechnologyengineeringlaboratory | 50,000.00 | 50,000.00 | Relatedtoassets |
| AmortizationofpolarizedmaterialsandtechnicalengineeringlaboratoryinShenzhen | 500,000.00 | 500,000.00 | Relatedtoassets |
| Amortizationofsubsidyfundsfortechnicalcenterconstruction | 300,000.00 | 300,000.00 | Relatedtoassets |
| Amortizationofsubsidyfundsforintroducingadvancedtechnology | 14,388.10 | 14,388.10 | Relatedtoassets |
| AmortizationoflocalsupportingfundsforTFT-LCDpolarizerphaseIIproject(Line6) | 1,500,000.00 | 1,500,000.00 | Relatedtoassets |
| AmortizationofinnovationandventurefundsforTFT-LCDpolarizerphaseIIproject(Line6) | 50,000.00 | 50,000.00 | Relatedtoassets |
| AmortizationofsubsidyfundsforkeytechnologyR&Dequipmentofopticalcompensationfilmforpolarizer | 500,000.00 | 500,000.00 | Relatedtoassets |
| AmortizationofnationalsubsidyforTFT-LCDpolarizerphaseIIproject(Line6) | 1,000,000.00 | 1,000,000.00 | Relatedtoassets |
| AmortizationoffundsforpilotprojectsofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince | 2,500,000.00 | 2,500,000.00 | Relatedtoassets |
| AmortizationofsubsidiesfornewproductionlinesandpurchasedequipmentinthephaseIIprojectofpolarizerforTFT-LCD | 3,000,000.00 | 3,000,000.00 | Relatedtoassets |
| Amortizationofsubsidyfundsforenergy-savingtransformation | 29,642.93 | 29,642.93 | Relatedtoassets |
| Amortizationofsubsidyfundsforoldelevatorrenovation | 142,255.72 | 142,255.72 | Relatedtoassets |
| SpecialfundsubsidiesforimprovingthequalityofatmosphericenvironmentinShenzhen | 468,931.57 | -- | Relatedtoassets |
| 2020Subsidyforspecialtechnicaltransformationinvestmentprojectofmultiplicationbytechnicaltransformation | 11,083.33 | -- | Relatedtoassets |
| Subsidyforpoststabilization | 160,712.86 | 174,114.77 | RelatedtoIncome |
| Sewagefeerefund | 597,362.55 | -- | RelatedtoIncome |
| Taxbureaufeerefund | 24,898.73 | 416,818.25 | RelatedtoIncome |
| SubsidyforcostreductionofindustrialandcommercialelectricityinShenzhen | 6,952,943.71 | 6,486,248.28 | RelatedtoIncome |
| MaternityallowancereturnedtotheemployeesbySocialSecurityBureau | 32,609.51 | -- | RelatedtoIncome |
| InsurancepremiumrefundbySocialSecurityBureau | 1,815 | RelatedtoIncome | |
| SecondbatchofepidemicgrantsfromPingshanDistrictFinanceBureau | 759 | RelatedtoIncome | |
| WatersavingcarrierawardfundfromShenzhenWaterAffairsBureauin2019 | 374,102.00 | -- | RelatedtoIncome |
| HarmoniouslaborrelationsenterpriseincentivefundfromShenzhenPingshanDistrictFinanceBureauin2018 | 1,000,000.00 | -- | RelatedtoIncome |
| EnterpriseR&DFundsfromShenzhenScienceandTechnologyInnovationCommitteein2018 | 1,278,000.00 | -- | RelatedtoIncome |
| High-techenterprisecertificationawardfromPingshanDistrictScienceandTechnologyInnovationBureauin2019 | 50,000.00 | -- | RelatedtoIncome |
| SubsidiesforworkinginlieuofbytraininginPingshanDistrict | 1,645,500.00 | -- | RelatedtoIncome |
| TrialposttrainingsubsidyofHumanResourcesBureauofPingshanDistrict,ShenzhenCity | 111,600.00 | -- | RelatedtoIncome |
| 2020PingshandistrictforeigntradestablegrowthfundsoftheFinancialBureauofPingshanDistrict,ShenzhenCity | 1,200,000.00 | 360,000.00 | RelatedtoIncome |
| Receivedrefundofunemploymentbenefitsfromthesocialsecuritybureautotheenterprisesaffectedbytheepidemic | 2,709,874.84 | -- | RelatedtoIncome |
| ThesecondbatchofpatentgrantsfromtheMarketSupervisionAdministrationin2018 | 9,000.00 | -- | RelatedtoIncome |
| Governmentsubsidiesforepidemicprotectionarticles | 10,000.00 | -- | RelatedtoIncome |
| Culturaltourismstabilizationsupportsubsidy | 100,000.00 | -- | RelatedtoIncome |
| Thefirstbatchofspecialfundsforscientificandtechnologicalinnovationin2019 | 966,000.00 | -- | RelatedtoIncome |
| ReceivedsubsidiesfromthePublicEmploymentServiceCentertohelpenterprisesstabilizetheirposts | 1,425.20 | -- | RelatedtoIncome |
| ReceivedtheawardforepidemicpreventioneffectfromtheBureauofIndustryandInformationTechnology | 20,000.00 | -- | RelatedtoIncome |
| ReceivedepidemicpreventionsubsidyfromtheHousingandConstructionBureauofLuohuDistrict,Shenzhenfor#145residentialbuildingonFenghuangRoad | 5,638.00 | -- | RelatedtoIncome |
| ReceivedepidemicpreventionsubsidyfromShenzhenLuohuDistrictHousingandConstructionBureauforShenzhenTextileCourtyardatNo.52TianbeiSecondRoad | 8,531.45 | -- | RelatedtoIncome |
| Halvedurbanconstructiontaxandsurcharges | 1,047.51 | -- | RelatedtoIncome |
| Halvedstampduty | 183.32 | -- | RelatedtoIncome |
| EpidemicpreventionsubsidyinLuohuDistrict | 10,000.00 | -- | RelatedtoIncome |
| Shenzhenstandardspecialfunds | -- | 360,000.00 | RelatedtoIncome |
| Thefirstbatchofpremiumsubsidiesfornewmaterials | -- | 4,806,400.00 | RelatedtoIncome |
| CuizhuStreet2018oldresidentialpropertymanagementsupportprojectqualifiedpropertyTianbeicourtyard | -- | 30,000.00 | RelatedtoIncome |
| ThesecondbatchofenterpriseR&DsubsidyfundsofShenzhenMunicipalFinanceCommittee | -- | 1,935,000.00 | RelatedtoIncome |
| Other | -- | 25,087.51 | RelatedtoIncome |
| Nationalsubsidyfundforspecialprojectofindustrializationofnewflatpaneldisplaydevices | -- | 1,000,000.00 | Relatedtoassets |
| Matchingfundsforhigh-techindustrializationdemonstrationprojects | -- | 200,000.00 | Relatedtoincome |
| Total | 29,506,252.69 | 27,547,902.92 |
42.Investmentincome
| Items | Amountofthisperiod | Amountoflastperiod |
| Long-termequityinvestmentreturnsaccountedforbyequitymethod | -3,446,613.86 | -7,404,083.27 |
| Investmentincomefromthedisposaloflong-termequityinvestment | -- | 55,481,817.13 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 2,946,592.79 | 4,654,009.67 |
| structureddepositinterest | 18,231,107.84 | 25,306,786.72 |
| Interestincomeontermdepositsover1year | 853,205.47 | |
| Netmonetarygains | 4,015,378.50 | -- |
| Total | 22,599,670.74 | 78,038,530.25 |
43.Incomefromchangeinincomefairvalue
| Sourcesofincomefromchangesinfairvalue | Amountofthisperiod | Amountoflastperiod |
| Othernon-currentfinancialassets | ||
| Where:Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 2,687,518.74 | -- |
| Total | 2,687,518.74 | -- |
44.Creditimpairmentloss
| Items | Amountofthisperiod | Amountoflastperiod |
| Lossofbaddebtnotesreceivable | -84,490.74 | |
| Lossofbaddebtsaccountreceivable | -8,481,632.23 | 6,929,467.72 |
| Other | -1,828,410.68 | 76,423.21 |
| Total | -10,394,533.65 | 7,005,890.93 |
45.Lossesfromassetimpairment
| Items | Amountofthisperiod | Amountoflastperiod |
| Lossofinventoryprice | -65,942,828.90 | -97,172,532.71 |
| Lossonimpairmentoffixedassets | -6,469,648.73 | -- |
| Total | -72,412,477.63 | -97,172,532.71 |
46.Assetdisposalincome
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Gains&lossesonthedisposaloffixedassets | 276,544.73 | 3,967.97 |
47.Non-Operationincome
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Amountincludedinnon-recurrentgainsandlossesfortheyear |
| Lossofend-of-lifegainsonnon-currentassets | -- | 39,823.01 | -- |
| Insurancecompensation | -- | 4,033,846.00 | -- |
| Payablewithoutpayment | 1,371,678.99 | 597,578.12 | 1,371,678.99 |
| Other | 73,983.39 | 332,301.21 | 73,983.39 |
| Total | 1,445,662.38 | 5,003,548.34 | 1,445,662.38 |
48.Non-currentexpenses
| Items | Amountofcurrentperiod | Amountofpreviousperiod | Amountincludedinnon-recurrentgainsandlossesfortheyear |
| Non-currentassetDispositionloss | 3,315.15 | 414,453.28 | 3,315.15 |
| Fineexpenses | 115,314.20 | 6,000.00 | 115,314.20 |
| Other | 19,791.92 | 121.79 | 19,791.92 |
| Total | 138,421.27 | 420,575.07 | 138,421.27 |
49.Incometaxexpenses
(1)Incometaxexpenses
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Currentincometaxcalculatedaccordingtotaxlawandrelevantregulations | 8,422,038.43 | 28,069,828.99 |
| Deferredincometaxexpense | -218,317.45 | -10,748.77 |
| Total | 8,203,720.98 | 28,059,080.22 |
(2)Therelationshipbetweenincometaxexpenseandtotalprofitisasfollows:
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Totalprofits | 51,701,366.13 | 9,532,401.59 |
| Incometaxexpensescalculatedattheapplicabletaxrate(totalprofit*25%) | 12,925,341.53 | 2,383,100.40 |
| Influenceofdifferenttaxratesappliedbysomesubsidiaries | -1,928,531.95 | 9,445,356.09 |
| Adjustmentofcurrentincometaxinpreviousperiods | 21,090.96 | 178,201.63 |
| Profitandlossofjointventuresandassociatedenterprisesaccountedbyequitymethod | 991,191.57 | 3,794,799.87 |
| Incomenotsubjecttotax | -630,419.57 | -322,906.47 |
| Non-deductiblecosts,expensesandlosses | 295,317.96 | 221,237.56 |
| Theinfluenceoftaxratechangeonthebalanceofdeferredincometaxatthebeginning | -1,222.02 | 5,458.59 |
| Taximpactbytheunrecognizeddeductiblelossesanddeductibletemporarydifferencesinpreviousyears | -173,798.62 | -775,053.15 |
| Taximpactofunrecognizeddeductiblelossesanddeductibletemporarydifferences | 5,073,772.21 | 19,522,497.03 |
| Taximpactofresearchanddevelopmentfeeplusdeduction | -7,555,608.48 | -5,982,605.36 |
| Incometaxfeereductionandexemption | -813,412.61 | -411,005.97 |
| Incometaxfee | 8,203,720.98 | 28,059,080.22 |
50.Supplementaryinformationtocashflowstatement
(1)Othercashreceivedrelevanttooperatingactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod | |||
| LetterofCreditDeposit | 95,971,397.61 | 32,712,277.24 | |||
| Interestincomeandother | 3,812,160.83 | 9,787,432.90 | |||
| GovernmentSubsidy | 10,319,059.97 | 8,107,420.53 | |||
| Currentaccount | 4,476,707.73 | 7,629,683.54 | |||
| Other | 4,817,267.42 | 3,459,477.53 | |||
| Total | 119,396,593.56 | 61,696,291.74 | |||
(2).Othercashpaidrelatedtooperatingactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| LetterofCreditDeposit | 50,257,183.69 | 42,928,583.04 |
| Cashcharges | 37,855,834.17 | 39,178,178.19 |
| Other | 9,104,639.66 | 14,254,157.16 |
| Total | 97,217,657.52 | 96,360,918.39 |
(3)OtherCashreceivedrelatedtoinvestmentactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 3,112,161,370.37 | 4,093,427,051.70 |
| L/Cmarginforpurchaseofline7equipment | 126,799,633.00 | 71,030,367.00 |
| Creditdepositfornon-Line7equipment | 1,900,000.00 | -- |
| Total | 3,240,861,003.37 | 4,164,457,418.70 |
(4).Cashpaidrelatedtootherinvestmentactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Structureddeposits,financialproducts,principalandincome | 3,004,000,000.00 | 4,360,000,000.00 |
| L/Cmarginforpurchaseofline7equipment | 2,150,000.00 | 196,430,000.00 |
| Creditdepositfornon-Line7equipment | 1,900,000.00 | -- |
| Stocktransactioncost | 15,275.20 | -- |
| Total | 3,008,065,275.20 | 4,556,430,000.00 |
（5）Othercashreceivedinrelationtofinancingactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Performancecompensation | -- | 197,268,700.00 |
| Borrowingfunds | -- | 6,506,454.17 |
| Total | -- | 203,775,154.17 |
（6）Cashpaidrelatedwithfinancingactivities
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Restrictedstockofstockrepurchaseincentiveobject | 9,344,136.30 | 11,091,675.60 |
| Borrowingfunds | 2,700,000.00 | |
| Total | 9,344,136.30 | 13,791,675.60 |
51.SupplementInformationforcashflowstatement
（1）SupplementInformationforcashflowstatement
| SupplementInformation | Amountofcurrentperiod | Amountofpreviousperiod | |
| I.Adjustingnetprofittocashflowfromoperatingactivities | |||
| Netprofit | 43,497,645.15 | -18,526,678.63 | |
| Add:Impairmentlossprovisionofassets | 72,412,477.63 | 97,172,532.71 | |
| Creditimpairmentlosses | 10,394,533.65 | -7,005,890.93 | |
| Depreciationoffixedassets,oilandgasassetsandconsumablebiologicalassets | 117,440,111.32 | 120,272,039.47 | |
| Amortizationofintangibleassets | 1,612,363.59 | 1,362,819.51 |
| AmortizationofLong-termdeferredexpenses | 582,518.72 | 505,932.97 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termdeferredassets | -276,544.73 | -3,967.97 |
| Lossonscrapoffixedassets | 3,315.15 | 374,630.27 |
| Lossonfairvaluechanges | -2,687,518.74 | -- |
| Financialcost | 455,850.38 | 4,734,103.39 |
| Lossoninvestment | -22,599,670.74 | -78,038,530.25 |
| Decreaseindeferredincometaxassets | 374,601.17 | 351,508.05 |
| Increasedofdeferredincometaxliabilities | -10,802,679.08 | 1,478,752.30 |
| Decreaseofinventories | -39,880,044.30 | 12,010,403.04 |
| Deceaseofoperatingreceivables | -188,437,910.96 | 289,069,889.61 |
| IncreasedofoperatingPayable | 15,830,477.68 | -40,611,755.04 |
| Other | -- | |
| Netcashflowsarisingfromoperatingactivities | -2,080,474.11 | 383,145,788.50 |
| II.Significantinvestmentandfinancingactivitiesthatwithoutcashflows: | - | |
| Debt-to-capitalconversion | -- | -- |
| Convertibleloanduewithin1year | -- | -- |
| Fixedassetsacquiredunderfinanciallease | -- | -- |
| 3．Movementofcashandcashequivalents： | ||
| Endingbalanceofcash | 274,325,830.08 | 268,646,588.18 |
| Less:Beginningbalanceofcashequivalents | 268,646,588.18 | 1,133,574,235.22 |
| Add：Endingbalanceofcashequivalents | -- | |
| Less:Beginningbalanceofcashequivalents | -- | |
| Netincreaseofcashandcashequivalents | 5,679,241.90 | -864,927,647.04 |
(2)Compositionofcashandcashequivalents
| Items | Year-endbalance | Year-beginningbalance |
| 1.I.Cash | 2.274,325,830.08 | 3.268,646,588.18 |
| 4.Including：Cashathand | 5.4,127.10 | 6.11,091.94 |
| 7.Demandbankdeposit | 8.274,085,025.1 | 9.268,424,080.67 |
| 10.Demandothermonetaryfunds | 11.236,677.88 | 12.211,415.57 |
| 13.II.Cashequivalents | 14.-- | 15.-- |
| 16.III.Balanceofcashandcashequivalentsattheperiodend | 17.274,325,830.08 | 18.268,646,588.18 |
52.Theassetswiththeownershiporuserightrestricted
| Items | Bookvalueattheendoftheperiod | Restrictedreason |
| Monetaryfund | 750,000.00 | LetterofCreditmargin |
| Fixedassets | 330,744,828.51 | Mortgage |
| Intangibleassets产 | 34,771,047.73 | Mortgage |
| Constructioninprocess | 1,301,880,727.03 | Mortgage |
| Total | 1,668,146,603.27 |
53.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
| Items | Closingforeigncurrencybalance | Exchangerate | ClosingconverttoRMBbalance |
| Monetaryfunds | |||
| Including：USD | 8,843,259.32 | 6.5249 | 57,701,382.74 |
| Yen | 78,877,109.00 | 0.063236 | 4,987,872.86 |
| HKD | 811,727.03 | 0.84164 | 683,181.94 |
| Accountreceivable | |||
| Including：USD | 18,973,368.14 | 6.5249 | 123,799,329.78 |
| HKD | 278,280.00 | 0.84164 | 234,211.58 |
| Advancepayments | |||
| Including：USD | 257,305.00 | 6.5249 | 1,678,889.39 |
| Euro | 805,500.00 | 8.025 | 6,464,137.50 |
| Otherreceivable | |||
| Including：USD | 37,399.02 | 6.5249 | 244,024.87 |
| Accountpayable | |||
| Including：USD | 4,530,318.93 | 6.5249 | 29,559,877.99 |
| Yen | 2,680,544,919.88 | 0.063236 | 169,506,938.56 |
| Otherpayable | |||
| Including：USD | 676,686.00 | 6.5249 | 4,415,308.48 |
| HKD | 1,986,068.33 | 0.84164 | 1,671,554.55 |
| Yen | 3,381,983.93 | 0.063236 | 213,863.14 |
| Euro | 22,500.00 | 8.025 | 180,562.50 |
VI.Changeinconsolidationscope
OnAugust24,2020,theCompanyestablishedShenzhenTextileSungangPropertyManagementCo.,Ltd.witharegisteredcapitalofRMB1,000,000.00,whichwasincludedintheconsolidationscopeinthisperiod.VII.Equityinotherentity
1.Equityinsubsidiary
（1）Constituteofenterprise
| Subsidiary | Mainoperation | Registeredplace | Businessnature | Share-holdingratio | Acquiredway | |||
| Directly | Indirectly | |||||||
| ShenzhenLishiIndustryDevelopment | Shenzhen | Shenzhen | Domestictrade,PropertyManagement | 100 | Establish | |||
| Co.,Ltd | ||||||
| ShenzhenHuaqiangHotel | Shenzhen | Shenzhen | Accommodation,restaurants,businesscenter; | 100 | Establish | |
| ShenfangPropertyManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100 | Establish | |
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | Shenzhen | Shenzhen | Productionoffullyelectronicjacquardknittingwholeshape | 100 | Establish | |
| ShenzhenShenfangSungangPropertyManagementCo.,Ltd. | Shenzhen | Shenzhen | PropertyManagement | 100 | Establish | |
| SAPOPhotoelectricCo.,Ltd | Shenzhen | Shenzhen | Operatingimportandexportbusiness | 60 | Purchase | |
| ShenzhenShenfangImport&exportCo.,Ltd. | Shenzhen | Shenzhen | Operatingimportandexportbusiness | 100 | Establish | |
| Shengtou(Hongkong)Co.,Ltd. | Hongkong | Hongkong | Productionandsalesofpolarizer | 100 | Establish |
2.Equityinjointventurearrangementorassociatedenterprise
（1）Jointventureorassociatedenterprise
| Jointventureorassociatedenterprise | Placeofoperation | Placeofregistration | Nature | Share-holdingratio | Theaccountingtreatmentofinvestmentinassociates | |
| Directly | Indirectly | |||||
| Jointventure： | ||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | Shenzhen | Shenzhen | Propertyleasing | 50.16 | Equitymethod | |
| AnhuiHuapengTextileCo.,Ltd. | Anhui | Anhui | Manufacturing | 50.00 | Equitymethod | |
| Associatedenterprise | ||||||
| ShenzhenChanglianfaPrintinganddyeingCompany | Shenzhen | Shenzhen | Propertyleasing | 40.25 | Equitymethod | |
| JordanGarmentFactory | Jordan | Jordan | Manufacturing | 35.00 | Equitymethod | |
| YehuiInternationalCo.,Ltd. | Hongkong | Hongkong | Manufacturing | 22.75 | Equitymethod | |
（2）Keyfinancialinformationofsignificantjointventureorassociatedenterprise
| Items | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd | |
| 2020.12.31 | 2019.12.31 | |
| Currentassets | 19,854,144.21 | 10,286,534.45 |
| Non-currentassets | 242,190,971.30 | 254,848,270.68 |
| Totalasseats | 262,045,115.51 | 265,134,805.13 |
| Currentliabilities | 12,261,343.60 | 10,815,587.15 |
| Non-currentliabilities | 37,356,444.69 | 39,522,035.69 |
| Totalliabilities | 49,617,788.29 | 50,337,622.84 |
| Netassets | 212,427,327.23 | 214,797,182.29 |
| including：Minorityshareholders'rights | -- | -- |
| Attributabletoshareholdersoftheparentcompany | 212,427,327.23 | 214,797,182.29 |
| Shareofnetassetscalculatedbystake | 106,553,547.34 | 107,742,266.64 |
| Adjustment | ||
| Including：Goodwill | 21,595,462.44 | 21,595,462.44 |
| Unrealizedinternaltransactiongainsandlosses | -- | -- |
| Impairmentpreparation | -- | -- |
| Other | 285,343.61 | 285,343.61 |
| Bookvalueofequityinvestmentinjointventures | 128,434,353.39 | 129,623,072.69 |
Continue：
| Items | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd | |
| Amountofcurrentperiod | Amountofpreviousperiod | |
| Operatingrevenue | 14,623,800.97 | 4,434,022.16 |
| Financialexpenses | -39,339.28 | -18,017.22 |
| Incometaxexpenses | -2,118,023.83 | 1,624,193.25 |
| Netprofit | -3,422,861.88 | -7,457,362.64 |
| Netprofitfromtermination | -- | -- |
| -OtherComprehensiveincome | -- | -- |
| Totalcomprehensiveincome | -3,422,861.88 | -7,457,362.64 |
| Dividendsreceivedfromjointventuresthisperiod | -- | -- |
VIII.RisksRelatedtoFinancialInstruments
TheCompany'smainfinancialinstrumentsincludemonetaryfunds,notesreceivable,accountsreceivable,receivablesfinancing,otherreceivables,tradingfinancialassets,investmentinotherequity
instruments,accountspayable,otherpayablesandlong-termloans.Detailsofvariousfinancialinstrumentshavebeendisclosedinrelevantnotes.TherisksrelatedtothesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytoreducetheserisksareasfollows.ThemanagementoftheCompanymanagesandmonitorstheseriskstoensurethattheaboverisksarecontrolledwithinalimitedrange.
1.Riskmanagementobjectivesandpolicies
TheobjectiveoftheCompanyinriskmanagementistostrikeaproperbalancebetweenrisksandbenefits,andstrivetoreducetheadverseimpactoffinancialrisksontheCompany'sfinancialperformance.Basedonthisriskmanagementobjective,theCompanyhasformulatedriskmanagementpoliciestoidentifyandanalyzetherisksfacedbytheCompany,setappropriateriskacceptablelevelsanddesigncorrespondinginternalcontrolprocedurestomonitortheriskleveloftheCompany.TheCompanywillregularlyreviewtheseriskmanagementpoliciesandrelatedinternalcontrolsystemstoadapttochangesinmarketconditionsorbusinessactivitiesoftheCompany.TheinternalauditdepartmentoftheCompanyalsoregularlyorrandomlycheckswhethertheimplementationoftheinternalcontrolsystemcomplieswiththeriskmanagementpolicy.
ThemainriskscausedbytheCompany'sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk(includingexchangeraterisk,interestrateriskandcommoditypricerisk).
TheBoardofDirectorsisresponsibleforplanningandestablishingtheCompany'sriskmanagementframework,formulatingtheCompany'sriskmanagementpoliciesandrelevantguidelines,andsupervisingtheimplementationofriskmanagementmeasures.TheCompanyhasformulatedriskmanagementpoliciestoidentifyandanalyzetherisksfacedbytheCompany.Theseriskmanagementpoliciesclearlydefinespecificrisks,coveringmanyaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheCompanyregularlyevaluateschangesinthemarketenvironmentanditsbusinessactivitiestodecidewhethertoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheCompanyiscarriedoutbytheRiskManagementCommitteeinaccordancewiththepoliciesapprovedbytheBoardofDirectors.TheRiskManagementCommitteeidentifies,evaluatesandavoidsrelevantrisksthroughclosecooperationwithotherbusinessdepartmentsoftheCompany.TheinternalauditdepartmentoftheCompanyregularlyreviewstheriskmanagementcontrolandprocedures,andreportsthereviewresultstotheAuditCommitteeoftheCompany.
TheCompanydispersestherisksoffinancialinstrumentsthroughappropriatediversifiedinvestmentandbusinessportfolio,andreducestherisksconcentratedinasingleindustry,aspecificregionoracertaincounterpartybyformulatingcorrespondingriskmanagementpolicies.
(1)Creditrisk
Creditriskreferstotheriskthatthecounterpartyfailstofulfillitscontractualobligations,resultinginfinanciallossesoftheCompany.
TheCompanymanagescreditriskaccordingtoportfolioclassification.Creditrisksmainlyarisefrombankdeposits,notesreceivable,accountsreceivableandotherreceivables.
ThebankdepositsoftheCompanyaremainlydepositedinstate-ownedbanksandotherlargeandmedium-sizedlistedbanks,andsuchbankdepositsarenotexpectedtohavesignificantcreditrisks.
Fornotesreceivable,accountsreceivable,otherreceivablesandlong-termreceivables,theCompanysetsrelevantpoliciestocontrolcreditriskexposure.TheCompanyevaluatescustomers'creditqualificationsbasedontheirfinancialstatus,creditrecordsandotherfactorssuchascurrentmarketconditions,andsetscorrespondingcreditperiods.TheCompanywillregularlymonitorcustomers'creditrecords.Forcustomerswithbadcreditrecords,theCompanywilladoptwrittendunning,shorteningofcreditperiodorcancellationofcreditperiodtoensurethattheoverallcreditriskoftheCompanyiswithinthecontrollablerange.
DebtorsofaccountsreceivableoftheCompanyarecustomersdistributedindifferentindustriesandregions.TheCompanycontinuouslyevaluatesthefinancialstatusofaccountsreceivableandpurchasescreditguaranteeinsurancewhenappropriate.
Themaximumcreditriskexposurethecompanyissubjecttoisthebookamountofeachfinancialassetinthebalancesheet.TheCompanyhasnotprovidedanyotherguaranteethatmayexposetheCompanytocreditrisk.
AmongtheaccountsreceivableoftheCompany,theaccountsreceivableofthetopfivecustomersaccountedfor56.46%ofthetotalaccountsreceivableoftheCompany(in2019:65.56%);AmongtheotherreceivablesoftheCompany,theotherreceivablesofthetopfivecompaniesinarrearsaccountedfor
74.16%ofthetotalotherreceivablesoftheCompany(in2019:75.87%).
(2)Liquidityrisk
LiquidityriskreferstotheriskofshortageoffundswhentheCompanyfulfillsitsobligationtosettlebydeliveringcashorotherfinancialassets.
ThemembercompaniesoftheCompanyareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusandraisingloanstomeettheestimatedcashdemand(iftheloanamountexceedscertainpresetauthorizationlimits,itneedstobeapprovedbytheBoardofDirectorsoftheCompany).Inaddition,theCompanywillalsoconsidernegotiatingwithsupplierstoreducepartofthedebtamount,orobtainfundsinadvancebysellinglong-agedaccountsreceivable,soastoreducethecashflowpressureoftheCompany.TheCompany'spolicyistoregularlymonitortheshort-termandlong-termliquiditydemandandwhetheritmeetstherequirementsoftheloanagreement,soastoensurethatsufficientcashreservesandsecuritiesthatcanberealizedatanytimearemaintained,andatthesametime,toobtainsufficientreservefundsthatmajorfinancialinstitutionspromisetoprovide,soastomeettheshort-termandlong-termliquiditydemand.
TheCompanyraisesworkingcapitalthroughfundsgeneratedfrombusinessoperationsandbankandotherloans.OnDecember31,2020,theunusedbankloanamountoftheCompanywasRMB456,899,800(December31,2019:notapplicable).
Attheendoftheperiod,thefinancialassets,financialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanyareanalyzedaccordingtothematurityperiodoftheundiscountedremainingcontractcashflowasfollows(InRMB10,000):
| items | 2020.12.31 | |||
| Within1year | 1yeartoWithin5years | Over5years | Total | |
| Financeliabilities： | ||||
| Accountpayable | 32,946.86 | 32,946.86 | ||
| Otherpayable | 13,035.84 | 13,035.84 | ||
| Long-termloans | -- | 34,310.02 | -- | 34,310.02 |
| TotalofFinanceliabilities | 45,982.70 | 34,310.02 | -- | 80,292.72 |
Atthebeginningoftheperiod,thefinancialassets,financialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanyareanalyzedaccordingtothematurityperiodoftheundiscountedremainingcontractcashflowasfollows(InRMB10,000):
| Items | 2019.12.31 | |||
| Within1year | 1yeartoWithin5years | Over5years | Total | |
| Financeliabilities： | ||||
| Accountpayable | 24,129.78 | -- | -- | 24,129.78 |
| Otherpayable | 15,264.58 | -- | -- | 15,264.58 |
| TotalofFinanceliabilities | 39,394.36 | -- | -- | 39,394.36 |
Theamountoffinancialliabilitiesdisclosedintheabovetableistheundiscountedcontractcashflow,thereforeitmaybedifferentfromthebookamountinthebalancesheet.
(3)Marketrisk
Marketriskoffinancialinstrumentsreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetomarketpricechanges,includinginterestraterisk,exchangerateriskandotherpricerisks.
Interestraterisk
Interestrateriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.Interestrateriskcanbecausedbyrecognizedinterest-bearingfinancialinstrumentsandunrecognizedfinancialinstruments(suchascertainloancommitments).
TheCompany'sinterestrateriskmainlyarisesfromlong-termbankloans.FinancialliabilitieswithfloatinginterestrateexposetheCompanytocashflowinterestraterisk,whilefinancialliabilitieswithfixedinterestrateexposetheCompanytofairvalueinterestraterisk.
TheCompanypayscloseattentiontotheimpactofinterestratechangesonitsinterestraterisk.Atpresent,theCompanyhasnotadoptedinterestratehedgingpolicy.However,themanagementisresponsibleformonitoringinterestrateriskandwillconsiderhedgingsignificantinterestrateriskwhennecessary.
Theinterest-bearingfinancialinstrumentsheldbytheCompanyareasfollows(InRMB10,000):
| Item | Numberofthisyear | Numberoflastyear | |
| Floating-ratefinancialinstruments | |||
| Financialliabilities | 34,310.02 | -- | |
| Including:long-termloans | 34,310.02 | -- | |
OnDecember31,2020,iftheborrowingratecalculatedbyfloatinginterestrateincreasesordecreasesby25basispoints,whileotherfactorsremainunchanged,thenetprofitandshareholders'equityoftheCompanywilldecreaseorincreasebyaboutRMB857,800(December31,2019:notapplicable).
Forfinancialinstrumentsheldonthebalancesheetdate,whichexposetheCompanytofairvalueinterestraterisk,theimpactofnetprofitandshareholders'equityintheabovesensitivityanalysisistheimpactofremeasuringthefinancialinstrumentsaccordingtothenewinterestrate,assumingthattheinterestratechangesonthebalancesheetdate.Forthefloatinginterestratenon-derivativeinstrumentsheldonthebalancesheetdate,whichexposetheCompanytocashflowinterestraterisk,theimpactoftheabovesensitivityanalysisonnetprofitandshareholders'equityistheimpactoftheaboveinterestratechangesontheannualestimatedinterestexpenseorincome.Lastyear'sanalysiswasbasedonthesameassumptionsandmethods.
Exchangeraterisk
Exchangerateriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetothechangeofforeignexchangerate.Exchangerateriskcanbederivedfromfinancialinstrumentsdenominatedinforeigncurrenciesotherthanthefunctionalcurrency.ExchangerateriskmainlyreferstotheimpactofforeignexchangeratefluctuationsonthefinancialpositionandcashflowoftheCompany.TheratioofforeigncurrencyassetsandliabilitiesheldbytheCompanytothetotalassetsandliabilitiesisnotsignificant.Therefore,theCompanybelievesthattheexchangerateriskitfacesisnotsignificant.
2.Capitalmanagement
TheobjectiveoftheCompany'scapitalmanagementpolicyistoensurethattheCompanycancontinuetooperate,therebyprovidingreturnstoshareholdersandbenefitingotherstakeholders,whilemaintainingthebestcapitalstructuretoreducethecapitalcost.
Inordertomaintainoradjustthecapitalstructure,theCompanymayadjustthefinancingmethod,adjustthedividendamountpaidtoshareholders,returncapitaltoshareholders,issuenewsharesandotherequityinstrumentsorsellassetstoreducedebts.
TheCompanymonitorsthecapitalstructureonthebasisofasset-liabilityratio(i.e.totalliabilitiesdividedbytotalassets).OnDecember31,2020,theasset-liabilityratiooftheCompanywas21.52%(December31,2019:14.94%).
IX.Fairvalue
Accordingtotheinputvalueofthelowestlevelwhichisofgreatsignificancetothewholemeasurementinfairvaluemeasurement,thefairvaluelevelcanbedividedinto:
LevelI:Quotesofthesameassetsorliabilitiesinactivemarkets(unadjusted).
LevelII:UseobservableinputvaluesotherthanthemarketquotationofassetsorliabilitiesintheLevelIdirectly(i.e.price)orindirectly(i.e.derivedfromprice).
LevelIII:Assetsorliabilitiesuseanyinputvaluethatisnotbasedonobservablemarketdata(unobservableinputvalue).
(1)Itemsandamountsmeasuredatfairvalue
OnDecember31,2020,theassetsandliabilitiesmeasuredatfairvaluearelistedasfollowsaccordingtotheabovethreelevels:
| Item | LevelIfairvaluemeasurement | LevelIIfairvaluemeasurement | LevelIIIfairvaluemeasurement | Total |
| I.Continuousfairvaluemeasurement | ||||
| (I)Transactionalfinancialassets | -- | -- | 684,617,260.06 | 684,617,260.06 |
| 1.Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | -- | -- | 684,617,260.06 | 684,617,260.06 |
| (II)Receivablefinancing | -- | -- | 102,051,314.08 | 102,051,314.08 |
| (III)Investmentinotherequityinstruments | 10,129,390.84 | 180,478,036.70 | 190,607,427.54 | |
| (V)Othernoncurrentfinancialassets | 30,650,943.40 | 30,650,943.40 | ||
| Totalassetscontinuouslymeasuredatfairvalue | 10,129,390.84 | 997,797,554.24 | 997,797,554.24 |
X.Relatedpartiesandrelated-partytransactions
1.Parentcompanyinformationoftheenterprise
| Name | Registeredaddress | Nature | Registeredcapital（RMB10,000) | TheparentcompanyoftheCompany'sshareholdingratio | TheparentcompanyoftheCompany’svoteratio | |
| ShenzhenInvestmentHoldingsCo.,Ltd. | 18/F,InvestmentBuilding,ShennanRoad,FutianDistrict,Shenzhen | Equityinvestment,Real-estateDevelopmentandGuarantee | 2,800,900.00 | 45.96 | 45.96 | |
Thecompanyisauthorizedandapprovedtobestate-ownedindependentcompanybyShenzhenGovernment,anditExecutesfinancialcontributorfunctiononstate-ownedenterprisewithinauthorizationscope.Duringthereportingperiod,theregisteredcapitaloftheparentcompanychangedasfollows:
In10,000
| Year-beginningbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Year-endbalance |
| RMB27,649million | 36,000.00 | -- | 2,800,900.00 |
2.SubsidiariesoftheCompanyDetailsrefertotheNoteVII-1,Interestinthesubsidiary
3.InformationonthejointventuresandassociatedenterprisesoftheCompany
DetailsrefertotheNoteVII-2,Interestsinjointventuresorassociates
4.OtherRelatedpartiesinformation
| Otherrelatedparty | RelationshiptotheCompany |
| ShenzhenShenchaoTechnologyInvestmentCo.,Ltd. | Subjecttothesamepartycontrols |
| ShenzhenCityConstructionandDevelopment(Group)Co.,Ltd | Subjecttothesamepartycontrols |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | ChairmanoftheBoardIstheViceChairmanoftheCompany |
| HangzhouJinjiangGroupCo.,Ltd. | ThecontrollingpartyofSAPOPhotoelectricShareholder |
| LanXiJinxinInvestmentManagementCo.,Ltd. | AsubsidiaryofHangzhouJinjiangGroupCo.,Ltd. |
| Shengbo（HK）Co.,Ltd. | TheCompanyExecutivesareDirectorofthecompany |
| ZhejiangHengjieIndustryCo.,Ltd. | AsubsidiaryofHangzhouJinjiangGroupCo.,Ltd. |
| HengmeiPhotoelectriCo.,Ltd. | AsubsidiaryofHangzhouJinjiangGroupCo.,Ltd. |
| ShenzhenXinfangKnittingCo.,Ltd. | SharingCompany |
| ShenzhenDailishiUnderwearCo.,Ltd. | SharingCompany |
5.Relatedtransactions.
（1）Relatedtransactionsonpurchasinggoodsandreceivingservices
①Acquisitionofgoodsandreceptionoflaborservice
| Relatedparty | Content | Currentamount | Lastamount |
| HengmeiPhotoelectriCo.,Ltd. | Polarized | 204,282,036.36 | 143,888,209.10 |
②Relatedtransactionsonsalegoodsandreceivingservices
| Relatedparties | Contentofrelatedtransaction | Amountofcurrentperiod | Amountofpreviousperiod |
| ShenzhenTianmaMicroelectronicsCo.,Ltd. | Salespolarizersheet | 1,485,995.60 | 1,444,346.74 |
| HengmeiPhotoelectriCo.,Ltd. | Polarized | 110,545,214.28 | 141,106,466.92 |
（2）Related-partyguarantee
1Relatedguarantee
| Guaranteedparty | Amount | Guaranteestartdate | Guaranteeenddate | Whethertheguaranteehasbeenfulfilled | |
| SAPOPhotoelectric | 342,660,000.00 | 2020.09.08 | Twoyearsfromtheexpirationofthedebtperformanceperiod | No | |
(3)Inter-banklendingofcapitalofrelatedparties：
| Relatedparty | Amount | Startdate | Expiringdate | Note |
| Borrowingfund：： | ||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 3,806,454.17 | 2019.07.30 | Notyetagreed | Theannuallendingrateis0.30% |
(4).Rewardsforthekeymanagementpersonnel
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Rewardsforthekeymanagementpersonnel | 8.2102million | 6.1638million | ||
6.Receivablesandpayablesofrelatedparties
（1）Receivables
| Name | Relatedparty | 2020.12.31 | 2019.12.31 | ||
| BalanceofBook | BaddebtProvision | BalanceofBook | BaddebtProvision | ||
| Accountreceivable | ShenzhenTianmaMicroelectronics | 581,696.96 | 25,652.84 | 733,038.52 | 36,651.93 |
| Accountreceivable | HengmeiPhotoelectriCo.,Ltd. | 20,879,229.37 | 1,578,235.08 | 53,893,840.80 | 2,694,692.04 |
| Otherreceivable | AnhuiHuapengTextileCompany | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 |
| Otherreceivable | ShenzhenDailishiUnderwearCo.,Ltd | 1,100,000.00 | 55,000.00 | 404,780.23 | 20,239.01 |
（2）Payables
| Name | Relatedparty | 2020.12.31 | 2019.12.31 | |
| Accountpayable | HengmeiPhotoelectriCo.,Ltd | 35,787,643.44 | 56,245,028.58 | |
| Otherpayable | ShenzhenXinfangKnittingCo.,Ltd. | 244,789.85 | 244,789.85 | |
| Otherpayable | ShenzhenChanglianfaPrintinganddyeingCo.,Ltd. | 1,580,949.95 | 1,580,949.95 | |
| Otherpayable | YehuiInternationalCo.,Ltd. | 1,143,127.81 | 1,216,719.38 | |
| Otherpayable款 | SAPO（Hongkong）Co.,Ltd. | 315,000.00 | 315,000.00 | |
| Otherpayable | ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 3,811,240.92 | 3,811,053.20 | |
XI.Sharepayment
1.Overallsituationofsharepayment
| Totalamountofvariousequityinstrumentsgrantedbythecompanyduringthecurrentperiod | |
| Totalamountofvariousequityinstrumentsthatthecompanyexercisesduringtheperiod | |
| Totalamountofvariousequityinstrumentsthathaveexpiredinthecurrentperiod | 1,566,150shares |
| Thescopeofexecutivepriceofthecompany’soutstandingshareoptionsattheendoftheperiodandtheremainingtermofthecontract | |
| Thescopeofexecutivepriceofthecompany’sotherequityinstrumentsattheendoftheperiodandtheremainingtermofthecontract | 5.73yuan/share，1year |
OnDecember14,2017,thecompany's3rdExtraordinaryGeneralMeetingofShareholdersin2017passedtheProposal
on‘ShenzhenTextile(Group)Co.,Ltd.2017RestrictedStockIncentivePlan(Draft)andAbstract’;onDecember14,2017,theboardofdirectorsofthecompanyreviewedandpassedtheProposalonAdjustingtheListofIncentiveObjectsofRestrictedStockIncentivePlansandtheNumberofEquityGrantedof2017,andtheProposalonGrantingRestrictiveSharestoIncentiveObjects.OnDecember14,2017,thecompanygranted4,752,300restrictedsharestotheincentiveobject,thegrantpricewas5.73yuan/share.Restrictionsshallbeliftedattherateof40%,30%,and30%respectivelyafter12months,24months,and36monthsafterthefirsttransactiondateof24monthsafterthecompletionoftheregistration.Thecompany'sperformanceassessmentfortherestrictedsharesgrantedeachperiodisasfollows:
| Restrictionliftingperiod | Performanceassessmentgoals |
| Thefirstrestrictionliftingperiod | In2018,theearningspershareshallbenolessthan0.07yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2018comparedwith2016isnotlessthan70%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2018,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnolessthan70%. |
| Thesecondrestrictionliftingperiod | In2019,earningspershareshallbenolessthan0.08yuan,andshallnotbelowerthanthe75fractileslevelofthecomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2019comparedwith2016isnotlessthan130%,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;in2019,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenueisnotlessthan75%. |
| Thethirdrestrictionliftingperiod | In2020,theearningspershareshallbenolessthan0.20yuan,andshallnotbelowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry;thegrowthrateofoperatingrevenuein2020isnotlessthan200%comparedto2016,andisnotlowerthanthe75fractileslevelofcomparablelistedcompaniesinthesameindustry.In2020,theproportionofopticalfilmbusinesssuchaspolarizerstooperatingrevenuewillbenolessthan80%. |
Note:Earningspershare=netprofit/totalcapitalstockattributabletocommonshareholdersoftheCompanyupondeductionofnon-recurringprofitandloss.
OnJanuary16,2020,theCompanyconvenedthefirstextraordinaryshareholders'meetingin2020toconsiderandpasstheProposalonRepurchaseandCancellationofSomeRestrictedSharesandagreedtorepurchaseandcancel69,900sharesofrestrictedsharesheldby3originalincentiveobjectswholeftthecompanyforpersonalreasonsatarepurchasepriceof
5.73yuanpershare.
OnMarch12,2020,the27thmeetingoftheSeventhBoardofDirectorsoftheCompanydeliberatedandapprovedtheProposalonRepurchaseandCancellationofSomeRestrictedStocks,onwhichrelateddirectorsZhuJun,ZhuMeizhuandNingMaozaiavoidedvotingaccordingtorelevantlaws,regulationsandtheArticlesofAssociationoftheCompany.Thecompanyplanstorepurchaseandcancelatotalof1,313,340restrictedstocksheldby110incentivetargetsthathavenotreachedtheconditionsforliftingtherestrictionsonsales.TherepurchasepriceiscalculatedatthegrantpriceofRMB
5.73/shareplusthebankdepositinterestforthesameperiod;Atotalof120,000restrictedstockswhichhavebeengrantedtothe3resignedemployeesbuthavenotyetliftedtherestrictionsonsaleareplannedtoberepurchasedandcancelled,atarepurchasepriceofRMB5.73/share.Atotalof1,433,340restrictedstockswererepurchasedandcancelledbytheCompany.IndependentdirectorsoftheCompanyissuedindependentopinionsandlawyersissuedlegalopinions.
OnApril3,2020,theCompanyheldthesecondextraordinarygeneralmeetingofshareholdersin2020toreviewandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedthattheCompanyheldatotalof1,313,340restrictedstocksthatfailedtolifttherestrictionsonsalesinPhaseIIof110incentiveobjectsatarepurchasepriceofRMB6.01/share;ItisagreedthattheCompanywillrepurchaseandcancelatotalof120,000restrictedstocksthathavebeengrantedtothe3resignedemployeesbuthavenotyetliftedtherestrictionsonsaleatarepurchasepriceofRMB
5.73/share,andatotalof1,433,340restrictedstockswillberepurchasedandcancelled.
OnJune8,2020,theCompanyheldthe30thmeetingoftheSeventhBoardofDirectorsandthe21stmeetingoftheSeventhBoardofSupervisors.TheBoardofDirectorsdeliberatedandapprovedtheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andproposedtorepurchaseandcancel57,150restrictedstocksheldbythe5originalincentiveobjectswhoresignedforpersonalreasonsatarepurchasepriceofRMB5.73/share;Itisproposedtorepurchaseandcancel5,760restrictedstocksheldby1retiredoriginalincentiveobjectattherepurchasepriceofRMB6.14/share.IndependentdirectorsoftheCompanyexpressedtheiragreedindependentopinions.TheBoardofSupervisorsdeliberatedandapprovedtheProposalonRepurchaseandCancellationofSomeRestrictedStocks,verifiedthenumberofrepurchasedandcancelledstocksandthelistofincentivetargets,andissuedverificationopinions,andlawyersissuedlegalopinions.OnJune29,2020,thecompanyheldthe2019AnnualGeneralMeetingofShareholderstodeliberateandapprovetheProposalonRepurchaseandCancellationofSomeRestrictedStocks,andagreedtorepurchaseandcancel57,150restrictedstocksheldbythe5originalincentiveobjectswhoresignedforpersonalreasonsatarepurchasepriceofRMB5.73/share;Itisagreedtorepurchaseandcancel5,760restrictedstocksheldby1retiredoriginalincentiveobjectattherepurchasepriceofRMB6.14/share,andatotalof62,910restrictedstockswillberepurchasedandcancelled.
2.Equity-settledshare-basedpayment
| Determinationmethodofthefairvalueofequityinstrumentsonthegrantdate | Theclosingpriceofthecompany'sstockongrantdate-grantprice |
| Determinationbasisofthenumberofvestingequityinstruments | Oneachbalancesheetdateofthewaitingperiod,itisdeterminedbasedonthelatestinformationsuchasthechangeinthenumberofpeoplethatcanbereleasedfromrestrictionsandthecompletionofperformanceindicators |
| Thereasonsforthesignificantdifferencebetweenthecurrentestimateandthepreviousestimate | |
| Equity-settledshare-basedpaymentisincludedintheaccumulatedamountofcapitalreserve | -- |
| Totalamountoffeesconfirmedbyequity-settledshare-basedpaymentsinthecurrentperiod | -- |
XII.Commitments
1.SignificantcommitmentsAsofDecember31,2020,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
2.ContingencyAsofDecember31,2020,Thecompanydoesnotdisclosethepensionplanundisclosedmattershouldexist.
XIII.Eventsafterbalancesheetdate
TheCompanyhasnoeventsafterthebalancesheetdatethatshouldbedisclosed.
XIV.Othersignificantevents
1.Segmentinformation
AccordingtotheCompany'sinternalorganizationalstructure,managementrequirementsandinternalreportingsystem,theCompany'sbusinessincludes4reportingsegments:polarizer,textile,propertyleasingandtrade.ThesereportingsegmentsaredeterminedbasedonthefinancialinformationrequiredbytheCompany'sdailyinternalmanagement.ThemanagementoftheGroupregularlyevaluatestheoperatingresultsofthesereportingsegments,soastodecidetoallocateresourcestothemandevaluatetheirperformance.Segmentprofitorloss,assetsandliabilitiesareasfollows:
| Currentperiodorendofcurrentperiod | Polarizer | Propertylease | Textile | Trade | Offset | otal |
| Operatingincome | 1,954,299,275.90 | 95,691,578.25 | 60,503,325.78 | -- | -1,529,492.13 | 2,108,964,687.80 |
| Including:revenuefromforeigntransaction | 1,954,299,275.90 | 94,195,699.39 | 60,469,712.51 | -- | -- | 2,108,964,687.80 |
| Revenuefrominter-segmenttransactions | -- | 1,495,878.86 | 33,613.27 | -- | -1,529,492.13 | -- |
| Including:revenuefrommainbusiness | 1,954,299,275.90 | 86,707,358.16 | 60,503,325.78 | -- | -4,077,074.78 | 2,097,432,885.06 |
| Operatingcost | 1,737,374,562.38 | 28,134,125.79 | 49,877,951.65 | -- | -1,088,244.80 | 1,814,298,395.02 |
| Including:mainbusinesscost | 1,737,374,562.38 | 21,928,436.25 | 49,877,951.65 | -- | -1,088,244.80 | 1,808,092,705.48 |
| Operatingprofit | 9,491,199.52 | 39,054,820.16 | 2,119,203.22 | -257,812.90 | -371,420.53 | 50,394,125.02 |
| Totalassets | 3,676,840,413.21 | 3,190,112,708.39 | 38,262,097.35 | 28,781,153.62 | -1,964,319,763.74 | 4,969,547,552.23 |
| Totalindebtedness | 878,156,778.18 | 177,919,940.25 | 20,735,649.08 | 19,444,715.13 | -26,024,780.03 | 1,070,232,302.61 |
2.Governmentsubsidy
Governmentsubsidiesincludedindeferredincomearesubsequentlymeasuredbythetotalamountmethod
| Subsidyitem | 2019.12.31 | Newsubsidyamountinthecurrentperiod | Amountcarriedforwardtoprofitorlossinthecurrentperiod | OthersChanges | 2020.12.31 | Listeditemscarriedforwardintoprofitorlossinthecurrentperiod | Asset-related/revenue-related |
| Amortizationoftextilespecialfunds | 428,571.41 | -- | 142,857.16 | -- | 285,714.25 | Otherincome | Relatedtoassets |
| AmortizationofsubsidyfundsforindustrializationitemsofTFT-LCDpolarizer销 | 3,033,333.34 | -- | 1,300,000.00 | -- | 1,733,333.34 | Otherincome | Relatedtoassets |
| Amortizationofsubsidyfundsfornarrowline(Line5)ofTFT-LCDpolarizerphaseIproject | 1,500,000.00 | -- | 500,000.00 | -- | 1,000,000.00 | Otherincome | Relatedtoassets |
| Amortizationforpurchasingimportedequipmentandtechnicalsubsidies | 501,926.58 | -- | 175,090.20 | -- | 326,836.38 | Otherincome | Relatedtoassets |
| AmortizationofinnovationandventurefundsforTFT-LCDpolarizerphaseIproject | 150,000.00 | -- | 50,000.00 | -- | 100,000.00 | Otherincome | Relatedtoassets |
| AmortizationofinnovationandventurefundsinShenzhenpolarizedmaterialsandtechnologyengineering | 262,500.00 | -- | 50,000.00 | -- | 212,500.00 | Otherincome | Relatedtoassets |
| laboratory | |||||||
| AmortizationofpolarizedmaterialsandtechnicalengineeringlaboratoryinShenzhen | 2,625,000.00 | -- | 500,000.00 | -- | 2,125,000.00 | Otherincome | Relatedtoassets |
| Amortizationofsubsidyfundsfortechnicalcenterconstruction | 1,575,000.00 | -- | 300,000.00 | -- | 1,275,000.00 | Otherincome | Relatedtoassets |
| Amortizationofsubsidyfundsforintroducingadvancedtechnology | 43,164.31 | -- | 14,388.10 | -- | 28,776.21 | Otherincome | Relatedtoassets |
| AmortizationoflocalsupportingfundsforTFT-LCDpolarizerphaseIIproject(Line6) | 12,750,000.00 | -- | 1,500,000.00 | -- | 11,250,000.00 | Otherincome | Relatedtoassets |
| AmortizationofinnovationandventurefundsforTFT-LCDpolarizerphaseIIproject(Line6) | 425,000.00 | -- | 50,000.00 | -- | 375,000.00 | Otherincome | Relatedtoassets |
| AmortizationofsubsidyfundsforkeytechnologyR&Dequipmentofopticalcompensationfilmforpolarizer | 3,625,000.00 | -- | 500,000.00 | -- | 3,125,000.00 | Otherincome | Relatedtoassets |
| AmortizationofnationalsubsidyforTFT-LCDpolarizerphaseIIproject(Line6) | 8,500,000.00 | -- | 1,000,000.00 | -- | 7,500,000.00 | Otherincome | Relatedtoassets |
| AmortizationoffundsforpilotprojectsofregionalagglomerationdevelopmentofstrategicemergingindustriesinGuangdongProvince | 21,250,000.00 | -- | 2,500,000.00 | -- | 18,750,000.00 | Otherincome | Relatedtoassets |
| AmortizationofsubsidiesfornewproductionlinesandpurchasedequipmentinthephaseIIprojectofpolarizerfor | 25,500,000.00 | -- | 3,000,000.00 | -- | 22,500,000.00 | Otherincome | Relatedtoassets |
| TFT-LCD | ||||||||
| Amortizationofsubsidyfundsforenergy-savingtransformation | 56,815.63 | -- | 29,642.93 | -- | 27,172.70 | Otherincome | Relatedtoassets | |
| Amortizationofsubsidyfundsforoldelevatorrenovation | 1,004,752.95 | -- | 142,255.72 | -- | 862,497.23 | Otherincome | Relatedtoassets | |
| Investmentfundsinthecentralbudgetofpolarizationindustrializationprojectforsuper-largeTV(Line7) | 30,000,000.00 | -- | -- | 30,000,000.00 | Otherincome | Relatedtoassets | ||
| R&Dsubsidyforkeytechnologiesofpolarizersforultra-thinIPSsmartphoneterminals | 2,000,000.00 | -- | -- | 2,000,000.00 | Otherincome | Relatedtoassets | ||
| ShenzhenMunicipalFinanceCommittee(R&Dkeytechnologiesofhigh-performancepolarizersforC2018N007large-sizedisplaypanels) | 5,000,000.00 | 1,000,000.00 | -- | 6,000,000.00 | Otherincome | Relatedtoassets | ||
| SpecialfundsubsidyforimprovingatmosphericenvironmentalqualityinShenzhen-SAPOPhotoelectric | 1,033,507.00 | -- | 442,931.57 | -- | 590,575.43 | Otherincome | Relatedtoassets | |
| SpecialfundsubsidiesforimprovingthequalityofatmosphericenvironmentinShenzhen-Meibainian | -- | 520,000.00 | 26,000.00 | -- | 494,000.00 | Otherincome | Relatedtoassets | |
| Subsidyforspecialtechnicaltransformationinvestmentprojectofmultiplicationbytechnicaltransformation | -- | 190,000.00 | 11,083.33 | -- | 178,916.67 | Otherincome | Relatedtoassets | |
| Total | 121,264,571.22 | 1,710,000.00 | 12,234,249.01 | -- | 110,740,322.21 | |||
3．Otherimportantmattersaffectinginvestors'decision-making
(1)ArbitrationbetweenthecompanyandJinjiangGroupAttheendof2016,theCompanyintroducedJinjiangGroupasastrategicinvestorforSAPOPhotoelectric'capitalincreaseandshareexpansion.TheCompany,SAPOPhotoelectric,JinjiangGroupandthelimitedpartnershipnamedHangzhouJinhangEquityInvestmentFundPartnership(LimitedPartnership)(hereinafterreferredtoas"JinhangInvestment")establishedbytheJinjiangGroupasactualcontrollers,signedtheCooperationAgreement.JinjiangGroupmadeacommitmenttotheperformanceofSAPOPhotoelectricfrom2017to2019andJinjiangGroupundertooktomakeupthedifferencebetweenthepromisednetprofitandtheactualprofitincashifthepromisedincomeandnetprofitwerenotfulfilled.In2018and2019,JinjiangGroupdidnotcompleteitsperformancecommitmentsasagreed.Theperformancecompensationcompanyin2018hasbeenreceivedin2019asagreed,totalingRMB197,268,700;Asfortheperformancecompensationin2019,JinjiangGroupbelievesthatitcannotdominatetheoperationandmanagementofSAPOPhotoelectric,whichleadstothefailureofthecontractualpurposeoftheCooperationAgreement,andappliestoShenzhenInternationalArbitrationCourtforarbitration.Request:
①Toawardtheapplicanttobeexemptedfromfulfillingthe2019annualperformancecompensationobligationstipulatedinArticle3.1oftheCooperationAgreement,thatis,theapplicantnolongerpaysRMB244,783,800toSAPOPhotoelectric;②Ifthearbitrationtribunalfindsthatitwillnotsupportthefirstarbitrationrequestmentionedabove,then,requestanawardtorescindArticle3.1oftheCooperationAgreement;TherespondentshallcompensatetheapplicantRMB197,268,700paidbytheapplicantin2018;AndtherespondentshallcompensatetheapplicantfortheprofitlossofRMB202,340,700thatitcouldhaveobtained;③Toawardtherespondenttobearthearbitrationfeeandtheactualexpensesofthearbitrationtribunal.Asofthereportingdate,theabovearbitrationhasnotyetbeenfinalized.
(2)UndeliveredpropertyofShenzhenXieliAutomobileEnterpriseCo.,Ltd.(hereinafterreferredtoas"XieliAutomobile")
ShenzhenXieliAutomobileCo.,Ltd.(hereinafterreferredtoas"ShenzhenXieli")isaSino-foreignjointventureinvestedbytheCompanyandHongKongXieliMaintenanceCo.,Ltdin1981,witharegisteredcapitalofRMB3.12million,and50%equityheldbytheCompany.Thebusinesstermofthecompanyendedin2008anditsbusinesslicensewasrevokedin2014.Themainassetofthecompanyisrealestate.InMarch2020,theIndustrialandCommerciallicenseofShenzhenXieliwascancelled,buthowtodisposeofthreepropertiesunderitsnameneedstoberesolveduponfurthernegotiationbetweenshareholdersofbothparties.
XV.Notessofmainitemsinfinancialreportsofparentcompany
1.Accountreceivable
（1）Agingdisclosure
| Aging | 2020.12.31 | 2019.12.31 |
| Within1year | 1,538,316.00 | 550,453.73 |
| Less：Baddebtprovision | 76,915.80 | 27,522.69 |
| Total | 1,461,400.20 | 522,931.04 |
（2）Disclosurebyclassificationaccordingtothebaddebtaccrualmethod
| Types | 2020.12.31 | 2019.12.31 |
| Bookbalance | Bad-debtprovision | Bookvalue | Bookbalance | Bad-debtprovision | Bookvalue | |||||
| Amount | Proportion(%) | Amount | Expectedcreditlossrate(%) | Amount | Proportion(%) | Amount | Expectedcreditlossrate(%) | |||
| Baddebtprovisionisaccruedaccordingtoindividualitems | 1,538,316.00 | 100.00 | 76,915.80 | 5.00 | 1,461,400.20 | 550,453.73 | 100.00 | 27,522.69 | 5.00 | 522,931.04 |
BaddebtprovisionisaccruedaccordingtoportfoliosAccrualofbaddebtprovisionbysingleitem:：
| 2020.12.31 | 2019.12.31 | |||||
| Bookbalane | Bad-debtprovision | Expectedcreditlossrate(%) | Bookbalane | Bad-debtprovision | Expectedcreditlossrate(%) | |
| Within1year | 1,538,316.00 | 76,915.80 | 5.00 | 550,453.73 | 27,522.69 | 5.00 |
(3)Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod
| Amountofbad-debtprovision | |
| 2019.12.31 | 27,522.69 |
| AdjustmentamountforthefirstimplementationoftheNewIncomeStandards | -- |
| 2020.01.01 | 27,522.69 |
| Currentaccrual | 49,393.11 |
| Withdrawalorreversalincurrentperiod | -- |
| 2020.12.31 | 76,915.80 |
(4)Thereisnoaccountreceivableactuallywrittenoffinthecurrentperiod
(5)ThetopfiveunitsoftheclosingbalanceofaccountsreceivablecollectedbythearrearsThetotalamountofthetopfiveaccountsreceivablecollectedbytheCompanyaccordingtothearrearagepartywas1,538,316.00yuan,accountingfor100%ofthetotalyear-endbalanceofaccountsreceivable,andallthetopfivearrearswererentalofhouses.Thesumoftheclosingbalanceofthecorrespondingprovisionforbaddebtsis76915.80yuan
(6)Noaccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
(7)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofaccountsreceivable
2.Otherreceivale
| Items | 2020.12.31 | 2019.12.31 | |
| Interestreceivable | -- | 7,329,228.31 | |
| Otherreceivavble | 7,450,934.40 | 9,710,277.69 | |
| Total | 7,450,934.40 | 17,039,506.00 | |
(1)Interestreceivable
1Categoryofinterestreceivable
| Items | 2020.12.31 | 2019.12.31 |
| Fixeddeposit | -- | -- |
| Structuredeposit | -- | 7,329,228.31 |
| Subtotal： | -- | 7,329,228.31 |
| Less：Baddebtprovisio | -- | -- |
| Total | -- | 7,329,228.31 |
(2)Otherreceivable
1CategoryofOtherreceivable
| Aging | 2020.12.31 | 2019.12.31 | |
| Within1year | 5,011,410.31 | 5,143,593.73 | |
| 1-2years | 2,410,316.25 | 3,828,819.36 | |
| 2-3years | 328,819.35 | 1,830,359.77 | |
| 3-4years | 454,759.77 | 1,810,047.30 | |
| 4-5years | 1,800,000.00 | -- | |
| Over5years | 12,461,099.73 | 12,476,252.43 | |
| Subtotal | 23,580,195.11 | 25,089,072.59 | |
| Less：Baddebtprovision | 16,129,260.71 | 15,378,794.90 | |
| Total | 7,450,934.40 | 9,710,277.69 | |
2Otheraccountsreceivableclassifiedbythenatureofaccounts
| Items | 2020.12.31 | 2019.12.31 |
| Bookbalance | BookBalance | |
| Exportrebate | 7,175,600.00 | 9,366,582.51 |
| Unitaccount | 16,369,395.10 | 15,678,175.33 |
| Deposit | 10,000.00 | -- |
| Other | 25,200.01 | 44,314.75 |
| Subtotal | 23,580,195.11 | 25,089,072.59 |
| Less：Baddebtprovision | 16,129,260.71 | 15,378,794.90 |
| Total | 7,450,934.40 | 9,710,277.69 |
3Bad-debtprovision
Attheendoftheperiod,baddebtprovisioninthefirststage:
| Types | BookBalance | Bad-debtprovision | Bookvalue |
| Baddebtprovisionaccruedbyagingportfol | 8,468,948.79 | 1,018,014.39 | 7,450,934.4 |
| Total | 8,468,948.79 | 1,018,014.39 | 7,450,934.4 |
Attheendoftheperiod,theCompanydoesnothaveinterestreceivable,dividendreceivableandotherreceivablesinthesecondstage;
Attheendoftheperiod,baddebtprovisioninthethirdstage:
| Types | BookBalance | Bad-debtprovision | Bookvalue | Reason |
| Baddebtprovisionisaccruedaccordingtoindividualitems | 15,111,246.32 | 15,111,246.32 | -- | Longagingandlowpossibilityofrecovery |
| Total | 15,111,246.32 | 15,111,246.32 | -- |
OnDecember31,2019,baddebtprovisionsareasfollows:
Baddebtprovisioninthefirststage:
| Types | BookBalance | Bad-debtprovision | Bookvalue |
| Baddebtaccruedbyagingportfolios | 10,996,121.64 | 1,285,843.95 | 9,710,277.69 |
| Total | 10,996,121.64 | 1,285,843.95 | 9,710,277.69 |
AsofDecember31,2019,theCompanyhasnointerestreceivable,dividendreceivableandotherreceivablesinthesecondstage.
AsofDecember31,2019,Baddebtprovisioninthethirdstage:
| Types | BookBalance | Bad-debtprovision | Bookvalue | Reason |
| Baddebtprovisionisaccruedaccordingtoindividualitems | 14,092,950.95 | 14,092,950.95 | -- | Longagingandlowpossibilityofrecovery |
| Total | 14,092,950.95 | 14,092,950.95 | -- |
④Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossoverlife(nocreditimpairment) | Expectedcreditlossesfortheentireduration(creditimpairmentoccurred) | ||
| BalanceasatDecember31,2019 | 1,285,843.95 | -- | 14,092,950.95 | 15,378,794.90 |
| BalanceasatDecember31,2019Incurrent | -- | -- | -- | -- |
| ——TransfertostageII | -- | -- | -- | -- |
| ——TransfertostageIII | -181,045.68 | -- | 181,045.68 | -- |
| ——TransfertostageII | -- | -- | -- | -- |
| ——TransfertostageI | -- | -- | -- | -- |
| Provisioninthecurrentperiod | -- | -- | 837,249.69 | 837,249.69 |
| Turnbackinthecurrentperiod | 86,783.88 | -- | -- | 86,783.88 |
| Resellerinthecurrentperiod | -- | -- | -- | -- |
| Write-offinthecurrentperiod | -- | -- | -- | -- |
| Other | -- | -- | -- | -- |
| BalanceasatDecember31,2020 | 1,018,014.39 | -- | 15,111,246.32 | 16,129,260.71 |
⑤Otheraccountreceivablesactuallycancelafterwrite-off:Nil
⑥Top5oftheclosingbalanceoftheotheraccountsreceivablecollectedaccordingtothearrearsparty
| Name | Nature | Year-endbalance | Age | Portionintotalotherreceivables(%) | Baddebtprovisionofyear-endbalance | |
| Top1 | Unitaccount | 11,389,044.60 | Over5years | 48.30% | 11,389,044.60 | |
| Top2 | Unitaccount | 7,175,600.00 | Within1year，1-2years | 30.43% | -- | |
| Top3 | Unitaccount | 1,800,000.00 | 4-5years | 7.63% | 1,800,000.00 | |
| Top4 | Unitaccount | 1,100,000.00 | Within1year | 4.66% | 55,000.00 | |
| Top5 | Deposit | 1,018,295.37 | 1-2year，2-3years，3-4years | 4.32% | 349,497.32 | |
| Total | 22,482,939.97 | 95.35% | 13,593,541.92 | |||
⑦NoAccountsreceivableinvolvedwithgovernmentsubsidies
⑧Nootheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
⑨Theamountoftheassetsandliabilitiesformedbythenotransferandthecontinuesinvolvementofotheraccountsreceivable
3.Long-termequityinvestment
| Items | 2020.12.31 | 2019.12.31 | ||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |
| Investmenttothesubsidiary | 1,972,630,835.39 | 16,582,629.30 | 1,956,048,206.09 | 1,966,803,211.46 | 16,582,629.30 | 1,950,220,582.16 |
| Investmenttojointventures | 138,703,188.31 | 138,703,188.31 | 139,721,906.46 | 139,721,906.46 | ||
| Investmenttoassociatedenterprises | 9,225,948.92 | 9,225,948.92 | 12,488,023.26 | 12,488,023.26 | ||
| Total | 2,120,559,972.62 | 16,582,629.30 | 2,103,977,343.32 | 2,119,013,141.18 | 16,582,629.30 | 2,102,430,511.88 |
（1）Investmenttothesubsidiary
| Name | 2019.12.31 | Increase | Decrease | 2020.12.31 | Withdrawnimpairmentprovisioninthereportingperiod | Closingbalanceofimpairmentprovision |
| SAPOPhotoelectric | 1,924,663,070.03 | 1,924,663,070.03 | 14,415,288.09 | |||
| ShenzhenLisiIndustrialDevelopmentCo.,Ltd. | 8,073,388.25 | 8,073,388.25 | ||||
| ShenzhenBeautyCenturyGarmentCo.,Ltd. | 16,864,215.55 | 16,864,215.55 | 2,167,341.21 | |||
| ShenzhenHuaqiangHotel | 15,489,351.08 | 15,489,351.08 |
| ShenfangPropertyManagementCo.,Ltd. | 1,713,186.55 | 1,713,186.55 | ||||
| ShenfangSungangPropertyManagementCo.,Ltd. | 5,827,623.93 | 5,827,623.93 | ||||
| Total | 1,966,803,211.46 | 5,827,623.93 | 1,972,630,835.39 | 16,582,629.30 |
（2）Investmenttojointventuresandassociatedenterprises
| Name | 2019.12.31 | Increase/decreaseinreportingperiod | 2020.12.31 | Closingbalanceofimpairmentprovision | |||||||
| Addinvestment | Decreasedinvestment | Gain/lossofInvestment | Adjustmentofothercomprehensiveincome | Otherequitychanges | Declarationofcashdividendsorprofit | Withdrawnimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| AnhuiHuapengTextileCo.,Ltd. | 10,098,833.77 | 698,189.37 | 10,797,023.14 | ||||||||
| ShenzhenGuanhuaPrinting&DyeingCo.,Ltd. | 129,623,072.69 | -1,716,907.52 | 127,906,165.17 | ||||||||
| Subtotal | 139,721,906.46 | -1,018,718.15 | 138,703,188.31 | ||||||||
| II.Associatedenterprises | |||||||||||
| ShenzhenChanglianfaPrintinganddyeingCompany | 2,450,676.14 | 255,586.24 | 2,706,262.38 | ||||||||
| JordanGarnentFactory | 902,269.19 | -904,422.99 | 2,153.80 | ||||||||
| YehuiInternationalCo.,Ltd. | 9,135,077.93 | -2,297,211.37 | -318,180.02 | 6,519,686.54 | |||||||
| Subtotal | 12,488,023.26 | -2,946,048.12 | -316,026.22 | 9,225,948.92 | |||||||
| Total | 152,209,929.72 | -3,964,766.27 | -316,026.22 | 147,929,137.23 | |||||||
4.Businessincome,Businesscost
（1）Businessincome,Businesscost
| Items | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusinesscost | 57,649,817.53 | 7,019,203.76 | 71,861,233.77 | 8,340,126.19 |
| Otherbusinesscost | 3,647,070.68 | 3,647,070.68 | 51,724,519.33 | 52,314,425.79 |
| Total | 61,296,888.21 | 10,666,274.44 | 123,585,753.10 | 60,654,551.98 |
（2）Mainbusiness（Industry）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| Propertyrental | 57,649,817.53 | 7,019,203.76 | 71,861,233.77 | 8,340,126.19 |
（3）Mainbusiness（Production）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| Propertyrental | 57,649,817.53 | 7,019,203.76 | 71,861,233.77 | 8,340,126.19 |
（4）MainBusiness（Area）
| Name | Amountofcurrentperiod | Amountofpreviousperiod | ||
| Businessincome | Businesscost | Businessincome | Businesscost | |
| Shenzhen | 57,649,817.53 | 7,019,203.76 | 71,861,233.77 | 8,340,126.19 |
5.Investmentincome
| Items | Amountofcurrentperiod | Amountofpreviousperiod |
| Incomefromlong-termequityinvestmentmeasuredbyadoptingtheCostmethod | 18,304,138.91 | -- |
| Incomefromlong-termequityinvestmentmeasuredbyadoptingtheequitymethod | -3,446,613.86 | -7,404,083.27 |
| Investmentincomefromthedisposaloflong-termequityinvestment | -- | 55,481,817.13 |
| Dividendincomeearnedduringinvestmentholdingsinotherequityinstruments | 1,995,042.32 | 1,558,400.13 |
| Structureddepositinterest | 14,919,678.58 | 18,417,333.36 |
| Netmonetarygains | 3,884,233.70 | -- |
| Total | 35,656,479.65 | 68,053,467.35 |
XVI.Supplementinformation
1.Particularsaboutcurrentnon-recurringgainsandloss
| Items | Amount | Notes |
| Non-currentassetdisposalgain/loss | 273,229.58 | |
| Govemmentsubsidyrecognizedincurrentgainandloss(excludingthosecloselyrelatedtotheCompany’sbusinessandgrantedunderthestate’spolicies) | 29,506,252.69 | Mainlyduetorecognizeotherincomefromgovernmentsubsidiesrelatedtothemainbusiness. |
| Othernon-businessincomeandexpendituresotherthantheabove | 1,310,556.26 | |
| Netamountofnon-operatingincomeandexpenseexcepttheaforesaiditems | -- | |
| Othernon-recurringGains/lossitems | 31,090,038.53 | |
| Less：Incometaximpactonnon-currentgains&losse | 53,313.37 | |
| Netnon-currentgains&losses | 31,036,725.16 | |
| Less：Netimpactofnon-currentgains&lossesattributabletominorityshareholders(aftertax) | 11,853,336.46 |
| Non-currentgains&lossesattributabletocommonshareholdersofthecompany | 19,183,388.70 |
2.Returnonnetassetandearningspershare
| Profitofreportperiod | Weightedaveragereturnsequity(%) | Earningspershare | |
| Basicearningspershare(RMB/share） | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletotheCommonstockshareholdersofCompany. | 1.36 | 0.07 | 0.07 |
| NetprofitattributabletotheCommonstockshareholdersofCompanyafterdeductingofnon-recurringgain/loss. | 0.66 | 0.04 | 0.04 |
ShenzhenTextile(Holdings)Co.,Ltd.
March12,2021