Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.Stock code: 000045 200045 Stock abbreviation: Shen Textile A Shen Textile B Announcement No.: 2026-04

Summary of 2025 Annual Report of Shenzhen Textile

(Holdings) Co. Ltd.I. Important notes

The summary of the annual report is extracted from the full text of the annual report. In order to fully understand

the Company's operating results financial status and future development plans investors should carefully read the

full text of the annual report on the media designated by the CSRC.All directors attended the board meeting at which this report was considered.Prompt of a modified report

□ Applicable□ Not applicable

Proposed profit distribution plan or the proposal for capitalization of reserves to increase share capital for the

reporting period deliberated by the Board of Directors

□? Applicable ? Not applicable

Whether to convert capital reserves to capital shares

? Yes□ No

The Board has approved a final dividend plan as follows: based on the total share capital of 506521849 shares a

cash dividend of RMB0.48 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus

issue from either profit or capital reserves.Proposed profit distribution plan for preferred shares for the reporting period resolved by the Board of Directors

□ Applicable□ Not applicable

II. Basic information of the Company

1. Company profile

Stock name Shenzhen Textile A Shenzhen Textile B Stock code 000045、200045

Stock exchange Shenzhen Stock Exchange

Stock name before the change (if

any) None

Contact person and contact

information Secretary of the Board of Directors Securities affairs representative

Name Huang Min LI Zhenyu

Floor 6 Block A Shen Fang Building No. 3 Floor 6 Block A Shen Fang Building No. 3

Office address Huaqiang North Road Futian District Huaqiang North Road Futian District

Shenzhen Shenzhen

Fax 0755-83776139 0755-83776139

Tel. 0755-83776043 0755-83776043

E-mail huangm@chinasthc.com lizy@chinasthc.com

2. Introduction to main business or products during the reporting period

(I) Main business of the Company

The Company's main business is a high-tech industry focusing on the R&D production and sales of polarizers for

OLED and LCD display and the operation and management of its own properties.

1Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

During the reporting period there was no significant change in the Company's primary business. First the

Company actively adjusted its product structure implemented a product differentiation strategy and increased the

sales proportion of high-value-added products. It has the sales volume of ultra-large-size (85" and above)

polarizers surged significantly; second the Company made every effort to overcome quality problems improve

customer satisfaction reduce product return losses and management costs and at the same time played a sales-

driven role to promote sales by production and the production and sales volume repeatedly hit a record high; third

the Company strengthened lean management effectively reduced the raw material losses and saved the

production costs; fourth the Company strengthened the innovation-led drive focused on key technology

breakthroughs promoted the development and industrialization of cutting-edge products and successfully

achieved the development and first delivery of VA-type high-transmittance and high-polarization 2.0 polarizers;

fifth the Company initiated the investment and construction of the Line 8 project to break through the production

capacity bottleneck for mid-to-high-end products; sixth the Company actively promoted the elimination of

enterprises with "non-main business assets non-dominant business assets inefficient assets and ineffective assets"

improved the mechanism for survival of the fittest enterprises guided the concentration of resources to the core

business and enhanced the efficiency of resource utilization; seventh the Company strengthened supervision and

management focused on work safety improved the institutional system formulated emergency disposal plans

enhanced safety training and education carried out safety risk identification hidden danger investigation and

rectification consolidated the weak links and prevented accidents; eighth continuously improved the quality of

property management service improve tenant satisfaction strived to maintain the Company's property rental rate

at a high level and ensured the stability of the Company's property leasing management business income.(II) Main products of the Company and their uses

Currently the Company has 7 mass-production polarizer production lines and its products cover OLED and LCD

polarizers. These products are mainly applied to products such as TVs laptops monitors vehicles industrial

controls instruments and meters smartphones and wearable devices. By continuously strengthening the

expansion of sales channels and the construction of its own brand the Company has become a qualified supplier

for mainstream panel enterprises such as CSOT BOE LGD Xianyang Caihong HKC Tianma Microelectronics

and Sharp.The main product types and applications of the Company's polarizer production lines are as follows:

Production lines Address Product width annual productioncapacity Main product type

Line 4 Pingshan 1490mm 10 million square meters TFT/OLED

Line 5 Pingshan 650mm 2 million square meters TFT/OLED

Line 6 Pingshan 1490mm 16 million square meters TFT/OLED

Line 7 Pingshan 2500mm 32 million square meters TFT/OLED

(III) Industry Overview for the Reporting Period

The polarizer is also called polarized light sheet which can control the polarization direction of a specific beam.When the natural light passes through the polarizer the light with the vibration direction perpendicular to the

polarizer transmission axis will be absorbed and only the polarized light with the vibration direction parallel to

the polarizer transmission axis will be transmitted. The downstream applications of polarizers are mainly in the

panel industry. According to different panel types polarizer are mainly classified into TN type STN type TFT

type and OLED type. Currently the global polarizer market is dominated by TFT-LCD polarizers. Each LCD

panel requires two polarizers.The high-quality development of the polarizer industry has a profound impact on the entire display industry. As

one of the three core raw materials of the display panel the demand for polarizer is directly affected by the

fluctuation of the display panel market. In recent years with the accelerated transfer of the global display panel

industry to China China's polarizer industry has ushered in a stage of rapid development. The production capacity

and process technology level of domestic polarizer manufacturers have continuously jumped. China's polarizer

industry has significantly improved its position and influence in the global market. Chinese mainland has become

the world's largest polarizer production base.

2Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

The Company is one of the main polarizer R&D production and sales enterprises in China. It is the pioneer of

China's polarizer industry. Now it has developed into a leading enterprise in China's polarizer industry and has

become an important supplier of mainstream panel enterprises in the world. In 2025 influenced by multiple

factors such as the complex and volatile global economy and geopolitics the transition of the national "trade-in"

policy and rising prices of raw materials like storage devices driven by the AI wave the global display panel and

terminal market demand still experiences a certain degree of fluctuation while continuing its slow recovery. In the

future with the capacity expansion and industry consolidation in the polarizer industry it is necessary to be more

vigilant about risks such as changes in the competitive landscape rising raw material costs and the security of

raw material supply.(IV) Market Competition Pattern

The polarizer industry is a highly concentrated industry. At present there are about 10 major polarizer

manufacturers in the world mainly located in Chinese mainland Japan and Taiwan. With the continuous transfer

of production capacity to China and the continuous expansion of production by manufacturers from Chinese

mainland China has become the world's largest polarizer production base. According to research data from the

industry institutions the production capacity of polarizers in China mainland accounted for about 65% of the

global total in 2025 and it is expected to further increase to about 75% in 2026. As the competitive advantage of

ultra-wide polarizer production line driven by the rapid growth of demand for large-size display products (65

inches and above) continuously stands out Chinese mainland continues to maintain its leading position in the

industry.(V) Market position of the Company's products

The Company is one of the main domestic enterprises in the R&D production and sales of polarizers. It began its

polarizer business in 1995 and achieved the first mass production of polarizers in China in 1998 becoming a

pioneer in China's polarizer industry. The Company has mastered core technologies for the R&D and production

of TN/STN-LCD TFT-LCD and OLED polarizers. It is one of the few domestic polarizer manufacturers with the

capability to produce a full range of polarizer products in large medium and small sizes. The Company was the

first to achieve mass production of polarizers for OLED TVs and OLED mobile phones filling a gap in the

domestic market.The Company's Line 7 is one of the few 2500mm ultra wide polarizing film production lines in the world which

can meet the needs of higher generation panel production lines such as the 8.5/8.6/10.5/11 generation globally.Especially matching the production line 10.5/11 generation of panel has the best economic production efficiency

and has industry-leading advantages in the technical level and production capacity of ultra large and large-sized

polarizers.

3. Key accounting data and financial indicators

(1) Major accounting data and financial indicators in the past three years

Whether the Company needs to retroactively adjust or restate the accounting data of previous years

? Yes□ No

Unit: RMB

Increase/decrease at

As at the end of 2025 As at the end of 2024 the end of this yearcompared with the As at the end of 2023

end of last year

Total assets 5418295716.77 5232150397.33 3.56% 5649822363.44

Net assets attributable to

shareholders of the listed company 2979719569.18 2951869910.25 0.94% 2882152266.22

Increase/decrease this

2025 Year 2024 year compared with Year 2023

last year

Operating revenue 3241380430.62 3335283008.68 -2.82% 3079678375.45

3Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

Net profit attributable to

shareholders of the listed company 68418663.02 89371134.24 -23.44% 79268250.45

Net profit attributable to

shareholders of listed companies

after deducting non-recurring profit 63434024.61 77028485.76 -17.65% 62328667.73

or loss

Net cash flows from operating

activities 347793597.26 231264525.09 50.39% 184766739.80

Basic earnings per share

(RMB/share) 0.14 0.18 -22.22% 0.16

Diluted earnings per share

(RMB/share) 0.14 0.18 -22.22% 0.16

Weighted average rate of return on

net assets 2.31% 3.06% -0.75% 2.77%

(2) Quarterly main accounting data

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 777932127.47 822549498.84 864584512.93 776314291.38

Net profit attributable to

shareholders of the listed company 20864282.75 14370482.77 24210475.56 8973421.94

Net profit attributable to

shareholders of listed companies

after deducting non-recurring profit 14037064.80 11151938.67 22426921.26 15818099.88

or loss

Net cash flows from operating

activities 274031114.11 51303206.88 -155199237.98 177658514.25

Whether the above financial indicators or their aggregate are significantly different from the financial indicators

related to the Company's disclosed quarterly and semi-annual reports

? Yes□ No

4. Share capital and shareholders

(I) Number of ordinary shareholders number of preferred shareholders whose voting rights have been

restored and shareholdings of the top 10 shareholders

Unit: shares

Total

number of

ordinary Total number of Total number of

shareholder preferred preferred

Total number of ordinary s at the end shareholders shareholders whose

shareholders at the end of the 35373 of the whose voting voting right is

reporting period. month

34660 rights have been 0 restored at the end 0

before the restored at the end of the month before

disclosure of the reporting the disclosure date

date of the period of the annual report

annual

report

Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)

Name of shareholder Nature of Shareholdin Number of shares

Number of shares Pledge marking or freezing

shareholder g ratio held held under

restricted Share status Number

4Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

conditions

Shenzhen Investment State-owned Not

Holdings Co. Ltd. legal person 46.21% 234069436 0 applicable 0

Shenzhen Shenchao

Technology Investment Co. State-ownedlegal person 3.18% 16129032 0

Not

Ltd. applicable

0

Domestic

Sun Huiming natural 1.60% 8088853 0 Not

person applicable

0

Hong Kong Securities

Clearing Company Ltd. Overseas Not

(HKSCC) legal person

1.21% 6142366 0 applicable 0

Domestic

Chen Xiaobao natural 0.89% 4491920 0 Not

person applicable

0

Domestic

Lin Chuangguang natural 0.71% 3619800 0 Not

person applicable

0

Domestic

Su Weipeng natural 0.71% 3580100 0 Pledged 3000000

person

Foreign

Li Zengmao natural 0.61% 3089197 0 Not

person applicable

0

Domestic

Jin Jun natural 0.45% 2267700 0 Not

person applicable

0

Domestic

Sun Wenbo natural 0.41% 2066700 0 Not

person applicable

0

Among the top 10 ordinary shareholders Shenzhen Investment Holdings Co. Ltd.and Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a

Notes to shareholders' related relationship or relationship of persons acting in concert. In addition the Company does not know

persons acting in concert whether there is a related relationship between the top 10 ordinary shareholders nor

does it know whether they are persons acting in concert as stipulated in the

Administrative Measures for the Acquisition of Listed Companies.Shareholders participating in margin

financing and securities lending business (if None

any)

Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10

shareholders of unrestricted tradable shares in refinancing business and lending shares

□ Applicable□ Not applicable

Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the

previous period due to refinancing lending/repayment

□ Applicable□ Not applicable

(2) Total number of preferred shareholders of the Company and shares held by top 10 preferred

shareholders

□ Applicable□ Not applicable

The Company had no preferred shareholders during the reporting period.

5Summary of 2025 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

(3) Disclose the property rights and control relationship between the company and the actual owner in the

form of a block diagram

State-owned Assets Supervision and Administration Commission

Shenzhen Investment Holdings Co. Ltd. Shenzhen Major Industry Investment Group Co. Ltd.Shenzhen Shenchao Technology Investment

Shenzhen Textile (Holdings) Co. Ltd.

5. Bonds existing on the approval date of the annual report

□ Applicable□ Not applicable

III. Important matters

On October 15 2025 the Company held the 45th meeting of the 8th Board of Directors at which the "Proposal on

Investment and Construction of 1.49m-wide Polarizer Production Line Project (Line 8) by a Subsidiary" was

deliberated and approved. It is agreed that the subsidiary Shenzhen SAPO Photoelectric Co. Ltd. based on the

market demand for polarizers and its own development needs would use a combination of its own funds and bank

loans with a planned total investment of approximately RMB 1.334 billion to build a new plant building and

supporting facilities by purchasing land in Pingshan District Shenzhen and to purchase equipment and

instruments to construct a 1.49m-wide LCD and OLED polarizer production line with a designed capacity of

approximately 18 million square meters per year. For details please refer to the "Announcement on Investment

and Construction of 1.49m-wide Polarizer Production Line Project (Line 8) by a Subsidiary" (No. 2025-39)

published by the Company on Cninfo (http://www.cninfo.com.cn) on October 16 2025. Currently the project has

obtained the land use right and ALL construction works are progressing in an orderly manner.Shenzhen Textile (Holdings) Co. Ltd.Board of Directors

March 30 2026

6