Shenzhen Textile (Holdings) Co. Ltd.2024 Annual Report
March 20252024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.Section I Important Notes Table of Contents and Interpretations
The Board of Directors Board of Supervisors directors supervisors and senior officers of the
Company guarantee the authenticity accuracy and completeness of the contents of the annual report
and bear individual and joint legal liabilities for any false records misleading statements or major
omissions.The Principal Yin Kefei the Chief Finance Officer Liu Yu and the Chief Accountant (accounting
supervisor) Huang Min declare that they will ensure the authenticity accuracy and completeness of
the financial report in this annual report.In addition to the following directors other directors personally attended the Board meeting at which
the Annual Report was considered.Names of directors not Positions of directors not Reasons for not attending the
Name of principal
present in person present in person meeting in person
Wang Chuan Director Business Related Wei Junfeng
Meng Fei Director Business Related Liu Yu
Forward-looking statements such as future development plans involved in this report do not constitute
a substantial commitment by the Company to investors. Investors and related persons should maintain
sufficient risk awareness and understand the differences between plans forecasts and commitments.Investors are requested to pay attention to investment risks.The Company is exposed to macroeconomic risks market risks raw materials risks and intensified
competition risks. Investors are advised to pay attention to investment risks. For details please refer to
"XI. Outlook for the Company's Future Development (III) Possible Risks" in "Section III Management
Discussion and Analysis" of this report.The profit distribution plan reviewed and approved by the Company at the Board is: based on
506521849 shares distribute cash dividends of 0.71RMB (including tax) for every 10 shares to all
shareholders and distribute 0 bonus shares (including tax) without converting the provident fund into
share capital.
22024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
This report is prepared in Chinese and English respectively. In case of any ambiguity between the
Chinese and foreign versions the Chinese version shall prevail.
32024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and In....2
Section II Company Profile and Major Financial Ind... 7
Section III Management's Discussion and Analysis ... 11
Section IV Corporate Governance .................... 29
Section V Environment and Social Responsibilities ...49
Section VI Important Matters ....................... 54
Section VII Changes in Shares and Shareholders ..... 65
Section VIII Preferred shares .......................71
Section IX Bonds ................................... 71
Section X Financial Reports .........................72
42024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
List of Documents Available for Inspection
I. Accounting statements bearing the signatures and seals of the legal representative Finance Director
and Chief Accountant of the Company;
II. The original audit report bearing the seal of the accounting firm and the signature and seal of the
certified public accountant;
III. The original of all the Company's documents and the original of the announcement that have been
publicly disclosed by the Company on the website designated by the China Securities Regulatory
Commission during the reporting period.The above-mentioned documents are kept in the office of the Board of Directors for reference.
52024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Interpretations
Items Refers to Interpretations
Company/ the Company / Shenzhen
Refers to Shenzhen Textile (Holdings) Co. Ltd.Textile
Articles of Association of Shenzhen Textile
Articles of Association Refers to
(Holdings) Co. Ltd.State-owned Assets Supervision and
Actual owner / Shenzhen SASAC Refers to Administration Commission of Shenzhen
Municipal People's Government
Controlling shareholder / Shenzhen
Refers to Shenzhen Investment Holdings Co. Ltd.Investment Holdings
Shenzhen Shenchao Technology Investment
Shenchao Technology Refers to
Co. Ltd.SAPO Photoelectric Refers to Shenzhen SAPO Photoelectric Co. Ltd.MCENTURY Refers to Shenzhen MCENTURY Garment Co. Ltd.Hengmei Optoelectronics Refers to Hengmei Optoelectronics Co. Ltd.Line 4 Refers to Polarizer for TFT-LCD Phase I Line 4 Project
Line 5 Refers to Polarizer for TFT-LCD Phase I Line 5 Project
Line 6 Refers to Polarizer for TFT-LCD Phase II Line 6 Project
Polarizer industry project for ultra-large-size
Line 7 Refers to
TV
China Securities Regulatory Commission Refers to China Securities Regulatory Commission
This report Refers to 2024 Annual Report
62024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section II Company Profile and Major Financial Indicators
I. Information about the Company
Shenzhen Textile A
Stock name Stock code 000045、200045
Shenzhen Textile B
Stock name before the change (if
None
any)
Stock exchange where the
Shenzhen Stock Exchange
Company's stocks are listed
Chinese name Shenzhen Textile (Holdings) Co. Ltd.Abbreviation in Chinese Shenzhen Textile
Foreign name of the Company (if
SHENZHEN TEXTILE(HOLDINGS)CO.LTD
any)
Abbreviation of the Company's
STHC
foreign name (if any)
Legal representative Yin Kefei
Room A1203 Tower A China State-owned Capital Venture Building No. 2 Hengsheng Street
Registered address
Nanshan Street Qianhai Shenzhen-Hong Kong Cooperation Zone Shenzhen
Postal code 518052
1. On April 27 2023 the registered address of the Company was changed from "6th Floor Shen
Fang Building No. 3 Huaqiang North Road Futian District Shenzhen" to "708M Building 8
Qianhai Excellence Financial Center (Phase I) No. 5033 Menghai Avenue Nanshan Sub-district
Qianhai Shenzhen-Hong Kong Cooperation Zone Shenzhen";
2. upon the review and approval of the 36th Meeting of the 8th Board of Directors of the Company
Historical changes in the
held on January 24 2025 and the 2025 First Extraordinary General Meeting held on February 18
Company's registered address
2025 the registered address of the Company was changed from "708M Building 8 Qianhai
Excellence Financial Center (Phase I) No. 5033 Menghai Avenue Nanshan Sub-district Qianhai
Shenzhen-Hong Kong Cooperation Zone Shenzhen" to "A1203 Tower A China Venture Capital
Fund Tower No. 2 Hengsheng Street Nanshan Sub-district Qianhai Shenzhen-Hong Kong
Cooperation Zone Shenzhen".Office address Floor 6 Block A Shen Fang Building No. 3 Huaqiang North Road Futian District Shenzhen
Postal code 518031
Official website http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
II. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Jiang Peng Li Zhenyu
Contact Floor 6 Block A Shen Fang Building No. 3 Huaqiang Floor 6 Block A Shen Fang Building No. 3 Huaqiang
address North Road Futian District Shenzhen North Road Futian District Shenzhen
Tel. 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
III. Information disclosure and storage location
Stock exchange websites where companies Shenzhen Stock Exchange (http://www.szse.cn/)
72024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
disclose annual reports
Name and website of the media where the Securities Times China Securities Journal Shanghai Securities News Securities Daily
Company discloses its annual report and Cninfo (http://www.cninfo.com.cn)
Storage location of annual reports Office of the Board of Directors
IV. Registration changes
Unified social credit
91440300192173749Y
code
In July 2012 with the approval of Shenzhen Administration for Market Regulation the Company's business
scope was changed to: production and processing of textiles knitwear clothing decorative fabrics belts
trademark belts and handicrafts (excluding restricted items); Department stores textile industry special
equipment textile equipment and accessories instruments standard parts textile raw materials dyes
electronic products chemical products mechanical and electrical equipment textile products office supplies
Changes in primary and domestic trade (excluding exclusive special control and monopolized goods); import and export
business since the business. In December 2018 with the approval of Shenzhen Administration for Market Regulation the
listing of the Company Company's business scope was changed to: production and operation of polarizer and other optical film
(if any) products; hotel property leasing and management; production and processing of textiles knits clothing
decorative fabrics belts trademark belts and handicrafts (excluding restricted items); Department stores
textile industry special equipment textile equipment and accessories instruments standard parts textile raw
materials dyes electronic products chemical products mechanical and electrical equipment textile
products office supplies and domestic trade (excluding exclusive special control and monopolized goods);
import and export business.In October 2004 according to the Decision on the Establishment of Shenzhen Investment Holdings Co. Ltd.issued by the Shenzhen State-owned Assets Supervision and Administration Commission of the Shenzhen
Previous changes of
Municipal People's Government (SGZW (2004) No. 223) the controlling shareholder of the Company
controlling shareholder
Shenzhen Investment & Management Company was merged and reorganized together with Shenzhen
(if any)
Construction Holdings Company and Shenzhen Commerce and Trade Holdings Company to form Shenzhen
Investment Holdings Co. Ltd.V. Other relevant information
Accounting firm engaged by the Company
Name Deloitte Touche Tohmatsu Certified Public Accountants (LLP)
Floor 30 No. 222 Yan'an East Road Huangpu District
Office address
Shanghai
Signing accountants Huang Tianyi Chen Junheng
Sponsor engaged by the Company to perform continuous supervision during the reporting period
□Applicable□Not applicable
Financial consultant engaged by the Company to perform continuous supervision during the reporting period
□Applicable□Not applicable
VI. Main accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes□No
Increase/decrease
this year
Year 2024 Year 2023 Year 2022
compared with
last year
Operating revenue (RMB) 3335283008.68 3079678375.45 8.30% 2837988264.36
Net profit attributable to the 89371134.24 79268250.45 12.75% 73309182.94
82024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
shareholders of the listed company
(RMB)
Net profit attributable to shareholders of
listed companies after deducting non- 77028485.76 62328667.73 23.58% 61951894.68
recurring profit or loss (RMB)
Net cash flows from operating activities
231264525.09184766739.8025.17%490238550.60
(RMB)
Basic earnings per share (RMB/share) 0.18 0.16 12.50% 0.14
Diluted earnings per share (RMB/share) 0.18 0.16 12.50% 0.14
Weighted average rate of return on net
3.06%2.77%0.29%2.59%
assets
Increase/decrease
at the end of this
As at the end of As at the end of
As at the end of 2024 year compared
20232022
with the end of
last year
Total assets (RMB) 5232150397.33 5649822363.44 -7.39% 5617137367.90
Net assets attributable to shareholders of
2951869910.252882152266.222.42%2849264555.21
the listed company (RMB)
The net profit of the Company in the last three fiscal years before and after deducting non-recurring profit or loss is negative and the
audit report of the latest year shows that the going-concern ability of the Company is uncertain
□ Yes □ No
The lower of net profit before and after deducting non-recurring profit or loss is negative
□ Yes □ No
VII.Differences between accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with the
international accounting standards and the Chinese accounting standards
□Applicable□Not applicable
During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in
accordance with international accounting standards and Chinese accounting standards
2. Differences in net profit and net assets in financial reports disclosed in accordance with both the
international accounting standards and Chinese accounting standards
□Applicable□Not applicable
During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in
accordance with the international accounting standards and Chinese accounting standards
VIII. Main financial indicators by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 761350922.92 862033228.98 898708470.32 813190386.46
Net profit attributable to shareholders
20777352.8523116722.3835007531.1410469527.87
of the listed company
Net profit attributable to shareholders 16974425.78 18283331.01 34873170.40 6897558.57
of listed companies after deducting
92024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
non-recurring profit or loss
Net cash flows from operating
31638249.21-19803399.27155500217.2063929457.95
activities
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
IX. Non-recurring profit or loss items and amounts
□ Applicable □ Not applicable
Unit: RMB
Amount in Amount in Amount in
Item Notes
202420232022
Profit or loss on disposal of non-current assets (including
833613.281.7231264.60
write-off of provision for asset impairment)
Government grants included in the current profit or loss
(except for those that are closely related to the Company's
normal business operations comply with national policies Mainly government
10454530.1219927836.0211048569.36
and regulations are enjoyed according to determined grants.standards and have a sustained impact on the Company's
profit or loss)
Mainly refers to the
fair value change
Profit or loss from changes in fair value of financial assets gains and losses
and liabilities held by non-financial enterprises and profit generated by the
or loss from the disposal of financial assets and financial -5319496.55 2151780.82 0.00 company's holding
liabilities except for effective hedging operations related of trading financial
to the Company's normal business operations assets and
derivative financial
liabilities.Reversal of provision for impairment of accounts
13927792.6315031480.150.00
receivable subject to separate impairment test
Non-operating revenue and expenses other than the above-
1107069.21-6755922.257516025.10
mentioned items
Less: income tax effects 2998978.10 3478333.83 3294064.39
Affected amount of minority interests (after tax) 5661882.11 9937259.91 3944506.41
Total 12342648.48 16939582.72 11357288.26 --
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
□Applicable□Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items
□Applicable□Not applicable
The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1
on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items.
102024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section III Management's Discussion and Analysis
I. Industry status during 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. At present the global polarizer market is mainly based on polarizers for TFT-LCD panels.One LCD panel requires two polarizers while one OLED panel requires one polarizer.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.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 2024 the global economic and geopolitical situation will remain complex and volatile. Affected by the
severe and complex economic and political situation in the world the global display panel and terminal market demand will slowly
recover and the polarizer industry will continue to expand its production capacity. However it still faces risks such as intensified
industry competition rising raw materials costs and raw materials supply security.II. Main business engaged in by the Company 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 the operation and management of its own properties and textile and clothing business.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
achieved an industry-leading position in OLED TV polarizer sales volume and the sales volume of ultra-large-size products has 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 the on-site technical management level and enhanced the
process stability. The improvement of broken film of each production line was remarkable and the average frequency of broken film
decreased significantly year-on-year which has reached a higher level in the industry. fourth the Company continued to strengthen
innovation leadership driving the development and mass production of cutting-edge products. It focused on breakthroughs in key
technologies and successfully achieved the development and mass production of high-performance OLED TV polarizers with high
transmittance and low reflection in 55-inch 65-inch and 77-inch sizes. Additionally it completed the development of highly alkali-
resistant polarizers for OLED mobile phones and the development of display polarizers that meet the U.S. Energy Star 9.0 energy
efficiency standards; fifth the Company actively phased out subsidiaries with "non-core businesses and inefficient assets" steadily
implemented the performance-based selection mechanism promoted the shifting of resources from non-core businesses to core
businesses and achieved rational use of resources; Sixth the Company strengthened supervision and management focused on work
safety prepared safety management systems strengthened safety training and education carried out safety risk identification and hidden
danger investigation and management consolidated weak links and prevented accidents; Seventh 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 TN STN TFT OLED 3D dye films
optical films for touch screens and other fields. These products are mainly applied to products such as TVs laptops navigators monitors
vehicles industrial controls instruments and meters smartphones wearable devices 3D glasses and sunglasses. 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 Sharp and so on.The main product types and applications of the Company's polarizer production lines are as follows:
112024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Production lines Address Product width Planned capacity Main product type
Line 1 Pingshan 500mm 600000 square meters TN/STN/dye films
Line 2 Pingshan 500mm 1.2 million square meters TN/STN/CSTN
Line 3 Pingshan 650mm 1 million square meters TFT
Line 4 Pingshan 1490mm 6 million square meters TFT/OLED
Line 5 Pingshan 650mm 2 million square meters TFT/OLED
Line 6 Pingshan 1490mm 10 million square meters TFT/OLED
Line 7 Pingshan 2500mm 32 million square meters TFT/OLED
(III) Business model of the Company
The polarizer industry is gradually shifting from the traditional business model of R&D production and sales to a customer-centric joint
R&D and comprehensive service business model. By understanding customer needs the Company jointly develops and carries out high-
standard production management manufactures high-quality products uses advanced polarizer roll-on equipment to cooperate with
downstream panel manufacturers' production lines optimizes production and logistics links reduces production and transportation costs
creates value for customers and achieves win-win cooperation.(IV) Main performance drivers of the Company
See "III. Core Competitiveness Analysis" in this section for details.(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 TFT-LCD and OLED display 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 main products are medium and large-sized polarizers for TFT-LCD. Its Line 7 is one of the few 2500mm ultra-wide
polarizer production lines in the world capable of meeting the needs of high-generation panel production lines such as 8.5/8.6 10.5/11
generations globally. Especially it offers the best economic production efficiency for 10.5/11 generation lines and has an industry-
leading advantage in the technology and production capacities for ultra-large and large-sized products.(VI) Competitive advantages and disadvantages
1. Advantages of competition
See "III. Core Competitiveness Analysis" in this section for details.
2. Disadvantages of competition
See "(III) Possible risks of XI. Outlook for the Company's future development" in this chapter for details.III. Analysis of core competitiveness
(I) Technical advantages. SAPO Photoelectric is one of the earliest national high-tech enterprises in China to enter the field of display
polarizer research and development and production. It has 29 years of polarizer industry operation experience and its products cover
mainstream display applications such as TN type STN type TFT type OLED etc. It has a complete set of proprietary technology and
independent intellectual property rights for polarizers that can meet customer needs and has the production capacity of a full range of
polarizers in large medium and small sizes. As of the end of the reporting period SAPO Photoelectric has been granted 109 patents
including: 21 domestic invention patents 86 domestic utility model patents and 2 overseas utility model patents. 4 national standards and
2 industry standards were independently drafted and formulated by SAPO Photoelectric and approved for implementation; in addition it
participated in the drafting and formulation of 1 industry standard which has been approved for implementation.SAPO Photoelectric has three innovation platforms including "Guangdong Provincial Engineering Research Center" "Shenzhen
Polarization Material and Technology Engineering Laboratory" and "Shenzhen Enterprise Technology Center". The platforms focus on
122024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the R&D and industrialization of the core production technologies of polarizers for OLED and LCD as well as the localization research
of raw materials for polarizer production. Among them the projects of polarizers for OLED TVs and OLED mobile phones have
successfully achieved mass production breaking the monopoly of Japan and South Korea and filling the domestic gap. It has a leading
edge compared with other polarizer manufacturers. Based on the successful development of OLED polarizer products the Company's A
Polarizer for Improving the Contrast Ratio of OLED Displays was granted a national patent in 2023. Trough in-depth research and
elaborate design of the material structure and optical path of the OLED polarizer this patent has successfully solved key technical
problems in the industry and promoted technological progress in the field of OLED polarizers possessing high commercial value and
application prospects.(II) Talent advantages. In order to comply with the high-quality development of the company the Company promotes the construction of
talent team in an all-round and multi-level way deeply explores the potential of existing talents fully stimulates their vitality
continuously improves the core competitiveness of the enterprise and lays a solid foundation for the high-quality development of the
company. The Company has always taken independent innovation as its core development strategy and has built a set of scientific and
efficient own R&D management system and gathered a professional team with excellent skills rich experience and international vision
covering polarizer management talents and senior technicians. First focus on talent training and team forging attach great importance to
talent training and team building and strive to build a technical team with high efficiency excellent cooperation and strong creativity
and successfully develop a series of innovative products with influence in the industry such as polarizer for ultra-large-size TVs and
polarizer for OLED. Second continuously enrich the team of middle-level cadres and core backbone talents. Supplement and equip core
backbone talents through diversified channels such as market-oriented recruitment public recruitment and internal selection to inject
strong impetus into the company's development. Third actively promote internal personnel exchanges and learning. In combination with
the actual situation of the Group in 2024 the two-way exchange and training activities for cadres and talents of the Group and its
affiliated enterprises were continuously carried out to effectively strengthen talent communication between enterprises improve the
comprehensive ability and duty performance ability of employees of the Company and further stimulate the overall vitality of the cadre
team. Fourth adhere to the "strategy-traction performance-based and fair and impartial" assessment and distribution principle and
continuously improve the compensation assessment and distribution mechanism of "efficiency priority justice integration balanced
evaluation system appropriate adjustment and combination with incentives and constraints". By scientifically and reasonably
determining the salary structure and level an effective incentive and constraint mechanism for determining value distribution based on
value creation has been formed and the work enthusiasm and creativity of employees have been fully mobilized.(III) Market advantages. The Company has a good customer base in the domestic and foreign markets. Compared with foreign advanced
peers the biggest advantage lies in the localized supporting capacity close to the panel market and the strong support of the national
industrial policy. In terms of market demand with the successive mass production of high-generation TFT-LCD panel production lines
such as domestic 10.5-generation and 11-generation lines as well as the accelerated development of larger-sized panels and terminal
products the demand for polarizers especially ultra-large-size polarizers in the domestic market has shown a steady growth trend. The
Company possesses one of the few 2500mm ultra-wide polarizer production lines in the world maintaining an industry-leading
advantage in both technology and production capacity for ultra-large and large-size products which enables the Company to better align
with the market demand for the ultra-large-size polarizers. With the continuous breakthrough of cutting-edge technology the demand for
high-end polarizer products such as OLED and vehicle-mounted polarizer is growing rapidly and is becoming a blue ocean market for
polarizer companies to compete. The Company has achieved mass production breakthroughs in OLED TVs and mobile phone products
and has accumulated rich experience in the production of high-quality automotive polarizers which will put it in a favorable position in
future market competition. In terms of market development the Company focuses on customer needs continuously optimizes the
production process and product structure improves quality control organically combines production and sales establishes a rapid
response mechanism gives full play to the advantages of localization effectively provides point-to-point professional services and
promotes the verification of various models around the overall strategic deployment to form a stable supply chain and continuously
improve market share.(IV) Quality advantages. The Company always adheres to the quality policy of "meeting customer needs pursuing excellent quality;
implementing green manufacturing and achieving continuous improvement" pays attention to product quality control and the products
are comparable to international quality standards. The Company strictly controls product performance indicators standardizes incoming
inspection standards and takes quality improvement and consumption reduction as the starting point to achieve simultaneous
improvement of output and quality; introduces modern management system and passes ISO9001 quality management system
ISO14001 environmental management system ISO450001 occupational health and safety management system QCO80000 hazardous
substance management system and ISO50001 energy management system certification; The product has passed the CTI test meets the
environment protection requirements of RoHS directive and realizes the standardized management of the whole process from raw
materials supply manufacturing marketing to customer service so as to ensure the stability of product quality.(V) Management advantages. The Company has been deeply involved in the industry for more than 20 years and has accumulated rich
management experience in the production and manufacturing of polarizers. It has a domestic leading polarizer production management
process control system quality management system and stable raw materials supply channels. The Company has carried out in-depth
and comprehensive benchmarking work organized management personnel to learn advanced experience from customers and peers
132024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
vigorously promoted standardized management refined management processes and learned from the management experience of
domestic and overseas polarizer enterprises to optimize the company's organizational structure reduce management levels and further
improve the company's management efficiency; The Company continues to implement advanced management systems and reasonable
incentive mechanisms to improve decision-making efficiency enhance market response speed and refine the R&D reward system. In
addition it achieves a deeper integration of corporate value and employee value stimulating new business vitality; the Company steadily
promotes strategic transformation optimizes resource allocation and orderly phases out "non-core businesses and inefficient assets"; the
Company has improved the efficiency of production management and enhanced the production stability with significant progress in
film-breaking reduction across production lines reaching a industry-leading level; the Company has strengthened quality management
leading to a significant reduction in customer complaints and return rates earning multiple quality improvement awards from multiple
key customers; through the approach of listing tasks based on project initiation the Company has effectively improved efficiency and
quality resulting in noticeable reductions in material costs and an increase in product yield rates.(VI) Policy advantages. Polarizer is an important part of the new display industry. The continuous development of the Company's
polarizer business has improved the overall supply capacity of domestic polarizer greatly reduced the dependence of domestic panel
enterprises on imported polarizer maintained the safety of the country's new display industry played a positive role in enhancing the
overall competitiveness of China's new display industry chain and boosted the coordinated development of the whole industrial chain of
"20+8" ultra-high-definition video display industry cluster in Shenzhen. The Company's polarizer business unit SAPO Photoelectric has
continued to receive recognition as a national high-tech enterprise and its polarizer projects have received multiple policy and financial
supports from national and local governments; in addition SAPO Photoelectric also enjoys the preferential policy of import duty
exemptions on key raw materials.IV. Analysis of primary business
1. Overview
2024 is a crucial year for the company to achieve the goals and tasks of the 14th Five Year Plan and also a year for the company to
forge ahead towards high-quality development. Over the past year facing a severe and complex economic situation the company's board
focused on the "14th Five Year Plan" strategic plan insisting on deepening the main business of polarizing film fully promoting the
continuous improvement of production capacity and technological level and the continuous innovation of cutting-edge technology
striving to turn challenges into opportunities continuously optimizing business quality steadily improving operational efficiency and
achieving an overall improvement in the business situation laying a solid foundation for the company's further transformation and
development.In 2024 the company will focus on its main business of polarizing films and achieve steady growth in performance through measures
such as optimizing product structure improving product quality enhancing operational efficiency promoting the development and mass
production of cutting-edge products and strengthening on-site technical management. During the reporting period the company
achieved a revenue of 3.335 billion yuan a year-on-year increase of 8.30%; The net profit attributable to shareholders of the listed
company was 89.3711 million yuan a year-on-year increase of 12.75%.The key work reviewed by the Company in 2024 as follows:
(I) Deeply cultivated the operation and management of polarizer and drove high-quality development with differentiation strategy
In 2024 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 achieved an industry-leading position in OLED TV polarizer sales volume and the
sales volume of ultra-large-size products has surged significantly; second the Company continued to promote lean management strictly
controlled manufacturing costs reduced material losses made every effort to overcome quality problems and improved customer
satisfaction; third the Company continued to strengthen innovation leadership driving the development and mass production of cutting-
edge products. It focused on breakthroughs in key technologies and successfully achieved the development and mass production of high-
performance OLED TV polarizers with high transmittance and low reflection in 55-inch 65-inch and 77-inch sizes. Additionally it
completed the development of highly alkali-resistant polarizers for OLED mobile phones and the development of display polarizers that
meet the U.S. Energy Star 9.0 energy efficiency standards; fourth the Company strengthened the on-site technical management level and
enhanced the process stability. The improvement of broken film of each production line was remarkable and the average frequency of
broken film decreased significantly year-on-year which has reached a higher level in the industry.(II) Consolidated the technological innovation ecosystem and empowered domestic substitution for breakthrough of key technologies
In 2024 the Company actively cooperated with upstream and downstream enterprises in the industry chain consolidated the innovation
ecosystem and undertook technical research projects. First in conjunction with upstream optical film material manufacturers and
downstream panel enterprises the project of OLED circular polarizer and optical compensation film technology research and
development has been carried out and has received national funding. The project was expected to make important contributions to the
localization of key materials for OLED polarizer and the industrialization of domestic OLED polarizer; second accelerated the research
and development of key technologies such as low color deviation circular polarizer for fixed curvature AMOLED and key technologies
for vehicle display polarizer. By the end of 2024 the fixed curvature AMOLED polarizer project completed the product development
and entered the mass production stage and the performance of the on-board polarizer products was preliminarily verified by customers.
142024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
In 2024 the Company completed 15 new patent applications including 7 invention patents and 8 utility model patents; obtained 5
authorized patents including 3 invention patents and 2 utility model patents. By the end of 2024 the Company had obtained a total of
109 authorized patents including 21 invention patents and 88 utility model patents.
(III) Maintained the stable development of the leasing industry and improved tenant satisfaction with high service quality
In 2024 the leasing market situation was grim the vacancy rate continued to rise and rents generally declined. The property
management enterprises affiliated to the Company continuously improved their management and their operation and development have
made steady progress. First judged the development trend of the future leasing market analyzed the potential customer demand and
scientifically and reasonably formulated the annual property leasing plan based on the actual situation of the property enterprise; second
strengthened management designed flexible lease terms and flexible payment methods and ensured the refined implementation and
landing of the annual lease plan; third continuously improved the quality of property management service timely responded to the
needs of tenants upgraded hardware and software facilities and enhanced tenant satisfaction. The Company's property leasing and
management business achieved steady development throughout the year contributing stable cash flows.(IV) Focus on the main business to optimize the asset structure and the Company's transformation and development results have been
achieved
In 2024 the Company steadily promoted strategic transformation optimized resource allocation and promoted high-quality development.First continued to steadily and orderly promoted the improvement of textile business operation and basically completed personnel
optimization; second the orderly liquidation of "non-core businesses and non-performing assets" and the participating enterprises Yehui
International Co. Ltd. has substantially completed the liquidation procedures; third revitalized idle assets and made full use of vacant
properties.(V) Terminate major asset reorganization projects and safeguard the interests of shareholders and the Company
Since the planning and first announcement of the Company's acquisition of 100% equity in Hengmei Optoelectronics Co. Ltd. by
issuing shares and paying cash (hereinafter referred to as the "Restructuring") the Company and relevant intermediaries have always
adhered to the perspective of safeguarding the interests of all shareholders actively communicated with the counterparty in terms of
transaction plans and core terms of the transaction.As the restructuring plan is complex and involves many counterparties by May 2024 the transaction has not completed the approval
procedures of all parties to the transaction and the validity period of the financial data of the target company has expired. From the
perspective of safeguarding the interests of all shareholders and listed companies the company has prudently demonstrated and friendly
negotiated with all parties to the transaction.(VI) Build a firm concept of work safety and take multiple measures to strengthen work safety management
In 2024 the Company firmly established the concept of safety development adhered to the safety red line awareness and bottom line
thinking comprehensively consolidated the safety foundation improved the safety management level and created a good safety
environment for production and operation. First improved the safety management system optimized the safety management system
established and improved the work safety responsibility system compacted the responsibilities at all levels and ensured that all safety
measures are implemented in place; second strengthened safety education and training carried out in-depth safety education and skill
training for all employees through diversified training forms and effectively improved employees' safety awareness and operation ability;
Third improved emergency response capabilities organized and carried out multi-level and multi-scenario emergency drills and
strengthened employees' emergency response skills and emergency response capabilities; fourth deepened risk prevention and control
and hidden danger investigation comprehensively carried out safety risk identification and hidden danger investigation and governance
and formulated special rectification measures for weak links to ensure that safety control measures are in place.(VII) Improved the quality of party building and led the high-quality development of enterprises
In 2024 the Company unswervingly strengthened party building further promoted the Party's innovative theoretical armament steadily
carried out Party discipline learning and education continued to deepen the construction of party conduct and clean government solidly
carried out Party building research and gave full play to the vanguard and exemplary role of grassroots party organizations as fighting
bastions and party members and cadres; continuously strengthened the overall service adhered to the focus on party building around the
center focused on straightening out the relationship between diversified shareholders of important subsidiary and formed a joint force
for the company's development; adhered to the party building-led innovation drive to create differentiated competitive advantages;
adhered to strengthening responsibility with party building empowerment forged a loyal and responsible cadre team and led the
Company's high-quality development through high-quality party building.
2. Revenue and cost
(1) Composition of operating revenue
Unit: RMB
Year 2024 Year 2023
YoY
Percentage of Percentage of
Amount Amount change
operating revenue operating revenue
Total operating revenue 3335283008.68 100% 3079678375.45 100% 8.03%
By industry
152024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Manufacturing 3222007352.76 96.60% 2968884717.77 96.40% 8.53%
Property leasing 113275655.92 3.40% 110793657.68 3.60% 2.24%
By product
Polarizer sales business 3161332478.08 94.78% 2885625542.77 93.70% 9.55%
Property leasing and
173950530.605.22%194052832.686.30%-10.36%
other business
By region
Domestic 3173216270.08 95.14% 2963091439.22 96.21% 7.09%
Overseas 162066738.60 4.86% 116586936.23 3.79% 39.01%
Subsales model
Credit sales 3088206699.28 92.59% 2948168591.89 95.73% 4.75%
Cash sales 247076309.40 7.41% 131509783.56 4.27% 87.88%
(2) Industry product region and sales model accounting for more than 10% of the company's operating revenue or operating
profit
□Applicable □ Not applicable
Unit: RMB
YoY change in YoY change
Gross YoY change in
Operating revenue Operating costs operating in gross
margin operating costs
revenue margin
By industry
Manufacturing 3222007352.76 2770623790.28 14.01% 8.53% 9.09% -0.44%
By product
Polarizer sales
3161332478.082720719735.9913.94%9.55%10.46%-0.70%
business
By region
Domestic 3173216270.08 2669090161.64 15.89% 7.09% 8.10% -0.78%
Subsales model
Credit sales 3088206699.28 2633299467.78 14.73% 4.75% 5.33% -0.47%
Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period the
Company's main business data for the latest period is adjusted according to the calculation method at the end of the reporting period
□Applicable □ Not applicable
(3) Whether the company's physical sales revenue is greater than the revenue of labor services
□Yes □No
Industry
Item Unit Year 2024 Year 2023 YoY change
classification
Ten thousand
Sales volume 4511.36 4067.17 10.92%
square meters
Ten thousand
Production volume 4519.80 4059.98 11.33%
Polarizer square meters
Ten thousand
Inventory 113.66 105.22 8.02%
square meters
Reasons for the YoY change of more than 30% in relevant data
□Applicable □Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the reporting period
□Applicable □Not applicable
162024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(5) Composition of operating costs
Industry and product classification
Industry and product classification
Unit: RMB
Industry Year 2024 Year 2023
YoY
classificatio Item Proportion in Proportion in
n Amount Amount
change
operating costs operating costs
Manufacturi Polarizer and
2770623790.2899.10%2539763710.9299.15%9.09%
ng textile
Property Property leasing
25236144.540.90%21868133.610.85%15.40%
leasing and others
Unit: RMB
Year 2024 Year 2023
Product
Item Proportion in YoY change
classification Proportion inAmount operating Amount
operating costs
costs
Polarizer sales Direct
2249737862.6082.69%2001392768.8281.25%12.41%
business materials
Polarizer sales Direct
56860547.472.09%56414151.282.29%0.79%
business labor
Polarizer sales
Power cost 69419996.74 2.55% 74399845.18 3.02% -6.69%
business
Manufactu
Polarizer sales
ring 344701329.18 12.67% 330930582.77 13.44% 4.16%
business
expenses
Notes
None
(6) Whether there was any change in the consolidation scope during the reporting period
□Yes □No
(7) Information about significant changes or adjustments in the Company's business products or services during the reporting
period
□Applicable □Not applicable
(8) Main sales customers and suppliers
Main sales customers of the Company
Total sales amount of top five customers (RMB) 2378354555.09
Ratio of top 5 customers' sales to total annual sales 71.31%
Ratio of related party sales among top 5 customers to total
0.00%
annual sales
Information on the Company's top 5 customers
No. Customer name Sales amount (RMB) Ratio in total annual sales
1 Customer 1 837268230.79 25.10%
2 Customer 2 711021831.51 21.32%
172024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3 Customer 3 384654504.42 11.53%
4 Customer 4 310802454.14 9.32%
5 Customer 5 134607534.23 4.04%
Total -- 2378354555.09 71.31%
Other information of main customers
□Applicable □Not applicable
Main suppliers of the Company
Total purchase amount of top five suppliers (RMB) 1136388239.76
Ratio of total purchase amount of the top five suppliers in the
44.72%
total annual purchase amount
Ratio of related party purchases among top 5 suppliers to total
0.00%
annual purchases
Information on the Company's top 5 suppliers
Ratio in the annual purchase
No. Supplier name Purchase amount (RMB)
amount
1 Supplier I 380858912.59 14.99%
2 Supplier II 249144324.52 9.80%
3 Supplier III 217940190.61 8.58%
4 Supplier IV 147054553.77 5.79%
5 Supplier V 141390258.27 5.56%
Total -- 1136388239.76 44.72%
Other information of main suppliers
□Applicable □Not applicable
3. Costs
Unit: RMB
Year 2024 Year 2023 YoY change Explanation of significant changes
Selling and distribution Mainly due to the increase in sales
42260603.4734195670.6123.58%
expenses service fees.G&A expenses 134347821.58 134371410.53 -0.02%
Mainly due to reduced interest
Financial expenses 12121156.05 24399501.16 -50.32% expenses and exchange rate
fluctuations.R&D expenses 103811822.91 104653040.92 -0.80%
4. R&D investment
□Applicable □Not applicable
Name of main R&D Project Expected impact on the
Purpose of the project Objectives to be achieved
project progress company's future development
High-transparency and high- Satisfy the demands of terminals
Development of high- Follow the
deviation TV products have for low-energy-consumption
transmittance and high- development trend of Completed
been developed and mass- display products and stabilize the
deviation TV products the industry.produced. market position of the enterprise.Development of ultra- Complete the development
Solve the issue of
wide new VA and introduction of materials Broaden sources of material
having a single Completed
compensation film and achieve the mass supply.supplier.product production and delivery of
182024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
products.Complete the product It is conducive to seizing market
Follow the
MNT product development and share and laying a foundation for
development trend of Completed
development introduction and achieve further product technological
the industry.mass production and delivery. update.Enter the medium and
Improve the Company's market
Development of wide high-end NB market
Complete the verification of position in small and medium-
width brightening NB and strengthen the Completed
customer materials. sized markets especially in the
products layout of the NB
NB field.market.Component certification will Further enhance the company's
OLED TV product Match the customer's
In progress be completed in June 2025 to market position in the field of the
development development strategy.achieve mass production. polarizer for OLED.Implement the Company's
AMOLED circular Complete material process strategy of cost reduction and
Dual development of
polarizer product Completed verification and customer-side efficiency improvement and meet
core components.development verification. the localization requirements of
the customer.Complete the development of
PVA high transparency Improve the cutting the extended process for thin Improve utilization while
Completed
process development utilization rate. PVA in the wide-width reducing production costs.production line.The Company has enriched and
Complete the design and
Improve the weather perfected its core technology of
High-durability PVA verification of the formula of
resistance index of the Completed polarizer production and kept up
water glue high-durability PVA water
product. with the international advanced
glue.level of the industry.Under the condition of
Improve the moisture
matching high machine speed Improve the competitiveness of
Development of highly resistance and
Completed the interlayer adhesion and the Company's products and
reliable UV adhesive interlayer adhesion of
reliability of the product are broaden the scope of application.large-size products.stable.Ensure that the internal test
Achieve breakthroughs
Development of full performance of the developed Lay a foundation for opening the
in technical solutions
lamination vehicle- Completed products meets the high-end market of on-board
and break foreign
mounted products requirements of full - fit on - products.monopoly.board products.Develop eye protection Complete the product
Diversify the Company's products
SGF eye care product products to enhance development and
Completed and improve the competitiveness
development product introduction and achieve
of the Company's products.competitiveness. mass production and delivery.R&D personnel of the Company
Year 2024 Year 2023 Change ratio
Number of R&D personnel 174 178 -2.25%
Proportion of R&D personnel 12.53% 12.57% -0.04%
R&D investment
Year 2024 Year 2023 Change ratio
Amount of R&D investment (RMB) 103811822.91 104653040.92 -0.80%
Ratio of R&D investment to
3.11%3.40%-0.29%
operating revenue (%)
Amount of capitalized R&D
0.000.000.00%
investment (RMB)
Ratio of capitalized R&D investment
0.00%0.00%0.00%
to R&D investment
Reasons and impact of major changes in the composition of the Company's R&D personnel
192024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
□Applicable □Not applicable
Reasons for the significant change in the proportion of total R&D investment to operating revenue compared with the previous year
□Applicable □Not applicable
Reasons for the significant change in the capitalization rate of R&D investment and its rationality explanation
□Applicable □Not applicable
5.Cash flows
Unit: RMB
Item Year 2024 Year 2023 YoY change
Sub-total of cash inflows from
3498846688.583078145063.0913.67%
operating activities
Sub-total of cash outflows from
3267582163.492893378323.2912.93%
operating activities
Net cash flows from operating
231264525.09184766739.8025.17%
activities
Sub-total of cash inflows from
1710096583.991467781075.5916.51%
investing activities
Sub-total of cash outflows from
1634895167.621904569967.97-14.16%
investing activities
Net cash flows from the investing
75201416.37-436788892.38117.22%
activities
Sub-total of cash inflows from
0.008000000.00-100.00%
financing activities
Sub-total of cash outflows from
466358420.51169488356.86175.16%
financing activities
Net cash flows from financing
-466358420.51-161488356.86-188.79%
activities
Net increase in cash and cash
-159335617.98-413054377.1361.43%
equivalents
Description of main influencing factors of significant YoY changes in relevant data
□Applicable □Not applicable
The net cash flows from investing activities increased by 117.22% YoY mainly due to the purchase of structured deposits and bank
wealth management products in the same period last year;
The net cash flows from financing activities decreased by 188.79% YoY mainly due to the prepayment of loan principal during the
reporting period;
The net increase in cash and cash equivalents increased by 61.43% YoY mainly due to the increase in cash inflows from the maturity of
the company's wealth management products during the reporting period.Explanation of the reasons for the significant difference between the net cash flow generated from the operating activities of the
Company and the net profit of the current year during the reporting period
□Applicable □Not applicable
V. Analysis of non-primary business
□Applicable □Not applicable
Unit: RMB
Ratio of total Whether it is
Amount Formation reasons
profit sustainable
202024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
It is mainly due to the loss of participating
Investment income -165313.89 -0.11% Sustainable.enterprises during the reporting period.It is mainly due to the income and fair value
Gains/losses on changes obtained by the Company from
changes in fair 1134503.45 0.74% purchasing financial products and the Not sustainable.value unexpired part of forward foreign exchange
contracts during the reporting period.It was mainly due to the provision for
inventory depreciation made by the
Asset impairment -132423108.75 -86.62% Company in accordance with the Sustainable.accounting policies during the reporting
period.It is mainly due to the liquidated damages
Non-operating
1805086.92 1.18% received by the Company during the Not sustainable.
revenue
reporting period.It is mainly due to the liquidated damages
Non-operating
698017.71 0.46% paid by the Company during the reporting Not sustainable.
expenses
period.It is mainly due to the government grants
received by and the preferential policy of
Other income 41484107.53 27.13% additional value-added tax deduction Sustainable.enjoyed by the Company during the
reporting period.VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
As at the end of 2024 Early 2024 Increase/decre Explanation of
Ratio of Ratio of ase in significant
Amount Amount
total assets total assets percentage changes
Monetary funds 340961443.82 6.52% 472274448.00 8.36% -1.84%
Accounts
863731936.8916.51%820134833.9514.52%1.99%
receivable
Inventories 789756700.88 15.09% 736392172.27 13.03% 2.06%
Investment
115993390.192.22%125603207.182.22%0.00%
properties
Long-term equity
114828026.042.19%127682020.702.26%-0.07%
investments
Fixed assets 1873552843.91 35.81% 2066006237.73 36.57% -0.76%
Construction in
5814012.030.11%31307060.740.55%-0.44%
progress
Right-of-use
15338117.860.29%11999466.570.21%0.08%
assets
Short-term
0.000.00%8000000.000.14%-0.14%
borrowings
Contract
490562.970.01%1436943.340.03%-0.02%
liabilities
It is mainly due
to the early
Long-term
162388870.00 3.10% 505578314.56 8.95% -5.85% repayment of
borrowings
loans by the
Company during
212024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the reporting
period.Lease liabilities 9496564.12 0.18% 6687317.22 0.12% 0.06%
Financial assets
731419904.4213.98%821946114.6814.55%-0.57%
held for trading
Other payables 160296989.98 3.06% 184528344.55 3.27% -0.21%
High proportion of overseas assets
□Applicable□Not applicable
2. Assets and liabilities measured at fair value
□Applicable □Not applicable
Unit: RMB
Profit or
Cumulative Amount
loss from Impairment Amount
changes in purchased
Beginning changes in provision in sold in the Other Ending
Item fair value in the
balance fair value in the current current changes balance
included in current
the current period period
equity period
period
Financial assets
1. Financial
assets held for
trading 82194611 2413062.8 16054540 16983932 73141990
0.000.000.00
(excluding 4.68 0 00.00 73.06 4.42
derivative
financial assets)
4. Other equity
1459889019414000.16540290
instrument 0.00 0.00 0.00 0.00 0.00
0.00000.00
investments
Sub-total of 96793501 2413062.8 19414000. 16054540 16983932 89682280
0.000.00
financial assets 4.68 0 00 00.00 73.06 4.42
Total of the 96793501 2413062.8 19414000. 16054540 16983932 89682280
0.000.00
above 4.68 0 00 00.00 73.06 4.42
--
Financial
0.001278559.30.000.000.000.000.001278559.3
liabilities
55
Other changes
None
Whether there were significant changes in the measurement attributes of the Company's major assets during the reporting period
□Yes □No
3. Restrictions on asset rights as of the end of the reporting period
Restricted assets as of the end of the reporting period are monetary funds notes receivable fixed assets and intangible assets of which:
(1) The restricted monetary funds mainly include the funds equivalent to RMB 3401500.00 due to the freezing of accounts and the bill
guarantee of RMB 35443338.96.
(2) Restricted notes receivable are notes receivable that have been endorsed by the Company and have not yet matured on the balance
sheet date.
(3) The restricted fixed assets and intangible assets are mainly the mortgage loans applied for subsidiary SAPO Photoelectric with part of
its self-owned properties from the syndicate led by Bank of Communications Co. Ltd. Shenzhen Branch and the guarantee provided by
the Company for the mortgage loans. For details please refer to the Announcement on the Provision of Guarantees by the Company for
Subsidiaries to Apply for Bank Mortgage Loans (No. 2020-19) and the Announcement on the Progress of the Provision of Guarantees by
222024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the Company for Subsidiaries (No. 2020-46) published by the Company on Cninfo (http://www.cninfo.com.cn).VII. Analysis of investment status
1. Overall situation
□Applicable □Not applicable
2. Major equity investments acquired during the reporting period
□Applicable □Not applicable
3. Major non-equity investments in progress during the reporting period
□Applicable □Not applicable
4. Investment in the financial assets
(1) Securities investment
□Applicable □Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□Applicable □Not applicable
The Company had no derivative investment during the reporting period.
5. Use of funds raised
□Applicable □Not applicable
The Company had no use of funds raised during the reporting period.VIII. Sales of major assets and equities
1. Sales of major assets
□Applicable □Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equity
□Applicable □Not applicable
IX. Analysis of major holding and participating companies
□Applicable □Not applicable
Major subsidiaries and participating companies with an impact of 10% or more on the Company's net profit
Unit: RMB
232024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Company Company Main Registered Operating Operating
Total assets Net assets Net profit
name type business capital revenue profit
Shenzhen
Production
SAPO Subsidiarie 58333333 40385761 32032660 32300060 13610962 13421408
and sales of
Photoelectric s 3.00 73.15 74.15 72.51 3.37 0.34
polarizers
Co. Ltd.Information on acquisition and disposal of subsidiaries during the reporting period
□Applicable □Not applicable
Methods of acquisition and disposal of Impact on overall production operation
Company name
subsidiaries during the reporting period and performance
It conforms to the Company's strategic
planning and has no significant impact
Shenzhen Huaqiang Hotel Co. Ltd. Liquidation
on the Company's overall production
operation and performance.Notes to main holding and participating companies
The financial data of the subsidiary SAPO Photoelectric in the above table are the data of its consolidated financial statements. For
details of its performance fluctuations and reasons for changes please refer to "IV Analysis of primary business" in "Section III
Management Discussion and Analysis".X. Structured entities controlled by the Company
□Applicable □Not applicable
XI. Prospects for the future development of the Company
(i) Industry competition pattern and development trend
1. Industry 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 transfer of production capacity and the continuous expansion of
production by manufacturers from Chinese mainland China has become the world's largest polarizer production base. According to the
latest data from Omdia by the end of 2024 the global share of polarizer production capacity in Chinese mainland will further increase to
about 58.5% and it is expected that by 2027 the share of polarizer production capacity in Chinese mainland will be close to 72%. In the
competition for ultra-wide polarizer production line driven by the rapid growth of demand for large-size display products of 65 inches
and above Chinese mainland continues to maintain its leading position in the industry.
2. Industry development trend
With the recovery of the global economy the gradual recovery of the consumer electronics market and the increasing maturity of various
types of display technologies and products in multiple scenarios the global display industry has entered a recovery upward channel. At
present the "national subsidy" policy continues to advance and the policy coverage will be further expanded in 2025. New consumer
electronic products such as mobile phones and tablets will be added as subsidy objects. At the same time the accelerated breakthrough
of artificial intelligence technology at the application end stimulates consumer demand to further promote the renewal and upgrading of
display products directly driving the demand growth of display panel and its upstream industrial chain. As one of the key raw materials
upstream of the display panel polarizers are expected to fully benefit from the recovery of the industry and technological progress and
enter a new round of demand growth.In recent years due to the continuous expansion of production capacity by major panel manufacturers in Chinese mainland the market
demand for domestic polarizer has grown rapidly. Similar to the development trend of the global panel industry overseas polarizer
manufacturers are also accelerating their contraction and withdrawal. Domestic polarizer manufacturers have occupied an advantageous
position in the field of LCD polarizer and are gradually catching up in differentiated markets such as high-end LCD polarizer and
OLED polarizer. There is still a large space for domestic substitution in the future which brings good development opportunities for
polarizer manufacturers from Chinese mainland with market advantages scale advantages policy advantages and geographical
advantages.With the upgrading of consumption ultra-large-size display products can better meet the needs of consumers for high-quality display
effects which has led to the continuous growth of demand for 65-inch and above large-size TVs bringing huge demand for ultra-wide
polarizer products. Market institution Omdia predicts that from 2024 to 2027 the annual compound growth rate of global demand area
of 65-inch and above polarizers will be about 10%. It is expected that by 2027 the demand for large-size panel of 65 inches and above
will increase to about 100mn square meters and the corresponding demand for ultra-wide polarizers will exceed 200mn square meters.At the same time the shipment of OLED panels in the field of smartphone screens in 2024 exceeded that of LCD panels for the first time.OLED displays have achieved high penetration in the field of smartphone and are accelerating the penetration to medium and large sizes.
242024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
In addition the multi-screen demand brought about by the continuous evolution of automobile intelligence and electrification as well as
the actual layout of OLED IT products actively promoted by Apple domestic and foreign leading panel manufacturers are also
accelerating the investment and construction of 8.6 generation OLED panel production lines which will drive the rapid growth of
market demand for high-end products such as OLED and polarizers for vehicle use becoming a blue ocean market for polarizer
companies to compete. In the future manufacturers with large-size polarizer products as well as high-end and cutting-edge polarizer
technology reserves and mass production capabilities such as OLED and vehicle will occupy greater competitive advantages.(II) Development strategy of the Company
The Company strengthens strategic leadership relying on the existing business foundation through the two major paths of stock
business potential expansion and incremental business investment empowerment actively plans business innovation and upgrading
vigorously implements the "polarizer +" strategy flexibly uses the capital operation mode promotes the core business of polarizer to
become bigger better and stronger and extends to the upstream raw materials of polarizer at the right time and actively expands to
other advanced new material sub-sectors with better industry track higher economic benefits and faster performance release and thus to
achieve "industry + capital" two-wheel drive to strive to build a world-class new material technology group.(III) Possible risks
1. Macroeconomic risks
At present the domestic economy is stable and progressing and the overall situation is repairing. However the international
environment is complex and severe geopolitical tensions and global economic growth is facing slowdown pressure. As one of the
upstream manufacturers in the display product market the Company cannot rule out the risk that unpredictable macroeconomic
fluctuations may affect the Company's performance.
2. Market risks
The polarizer industry is an important part of China's new display industry. The demand for display panels and the development of
corresponding technologies are changing rapidly. The process of domestic substitution in the polarizer industry is underway. With the
development of new display technologies such as ultra-large size displays OLED displays and vehicle displays if the Company's
technology and products cannot respond to the needs of the application field in a timely manner the new product development and
application are weaker than expected or the intensified market competition leads to the decline in the price of display products and the
downward pressure on the price is transmitted to the polarizer market which will have an adverse impact on the Company.
3. Raw materials risks
There are high barriers to the core production technology of upstream materials of polarizers which are mostly monopolized by foreign
manufacturers and the localization rate is not high. At present the key raw materials required for the manufacture of polarizers such as
PVA film TAC film and other optical films are basically monopolized by Japanese enterprises. The price of the main optical film
materials is affected by the production capacity of Japanese suppliers market demand and the exchange rate of Japanese yen thus
affecting the unit cost of the Company's products.
4. Risks of intensified competition
With the accelerated production of new and expanded production lines by major domestic polarizer manufacturers in recent years
polarizer production capacity especially large-size polarizer production capacity will continue to grow in the future. If the recovery of
downstream consumer markets is weaker than expected the competition in the polarizer industry will further intensify.(IV) Priorities in 2025
1. Adhere to innovation-driven approach and promote the main business of polarizers to become stronger and better
Adhere to focusing on the main business of polarizer and effectively promote the measures of "capacity scale product differentiation
innovation ecology and management lean". First continuously strengthen the research of cutting-edge technologies focus on key
technologies such as high penetration high contrast flexible folding and high durability promote the product development of cutting-
edge products and seize the development opportunities of the blue ocean market of new displays; second continue to improve the
production process technology level further improve the speed and yield of Lines improve the mass production capacity of ultra-large
size polarizers and steadily promote the optimization and transformation of existing production lines; third strengthen diversified
technological innovation cooperation promote collaborative research with upstream and downstream enterprises of the industrial chain
and accelerate the breakthrough of key technology research projects such as OLED circular polarizers and optical compensation films
and vehicle-mounted polarizers; fourth promote lean management effectively promote quality improvement cost reduction and
efficiency improvement reduce process losses remove sluggish inventory improve product quality import domestic materials and
enhance the anti-risk ability of operation.
2. The property leasing business is stable and progressive providing effective support for the Company's development
Property management companies actively carry out market research formulate refined annual leasing plans in combination with market
and the Company's conditions further optimize the working mechanism continuously implement refined management innovate and tap
potential open up revenue and reduce expenditure improve the service quality and management level of property management
companies and improve operating efficiency.
3. Strengthen the governance of loss-making enterprises and the disposal of "non-core/non-competitive businesses and inefficient/non-
performing assets"
Carry out the demobilization work in an orderly and steady manner. First actively promote the disposal of textile business inventories
the public listing of fixed assets and the liquidation of claims and debts; second extensively seek interested acquirers and promote the
transfer of small equity in some participating enterprises; thirdly actively revitalize the low-efficiency property stock assets optimize
252024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
asset allocation and improve asset operation efficiency so as to lay a solid foundation for the Company to focus on the main business of
polarizers and seek transformation and development.
4. Strengthen the construction of talent team and ensure development with talent-driven innovation
Deeply implement the talent-driven strategy optimize the structure of the cadre team and improve capacity building. First vigorously
select cadres and talents with both integrity and ability increase the introduction of high-end talents cultivate compound talents and
broaden the development path; second innovate the incentive mechanism release the potential of talents benchmark the management
experience of advanced enterprises and implement flexible and diversified medium and long-term incentives; third create an
environment of "recognizing talents cherishing talents loving talents and using talents" give full play to the professional intellectual
and resource advantages of talents empower the Company's high-quality development with a high-quality talent team and
comprehensively enhance the Company's core competitiveness.
5. Strengthen safety management and build a firm safety defense line
Always adhere to the work safety policy of "safety first prevention oriented and comprehensive governance" firmly establish the
concept of safety development continuously improve the safety management system of the Company closely follow the update of
national and local work safety regulations refine the safety management system further strengthen the on-site safety supervision and
rewards and punishments vigorously carry out safety education and training carry out various forms of safety inspections continuously
improve the Company's safety management capabilities enhance the safety awareness and emergency response capabilities of all
employees and comprehensively build a firm line of defense for work safety.
6. Improve the risk control compliance system and enhance the ability of comprehensive risk prevention and control
Comprehensively improve the compliance management system make multi-dimensional efforts from organization system mechanism
to cultural construction implement special compliance management for key areas explore the establishment of coordination
mechanisms for compliance legal affairs and risk control and improve management efficiency through efficient coordination. At the
same time strengthen the cornerstone of legal management strictly control the legality and compliance of major decisions and
effectively improve the level of business support and risk prevention and control. Strengthen the legal affairs and compliance team
enhance the compliance awareness and ability of all employees through regular training promote the deep integration of business laws
and help the Company develop steadily.
7. Enhance market value management level and promote high-quality development of the company
Focusing on improving the operational quality of the company efforts will be made to optimize the "three meetings and one layer"
governance mechanism improve the internal control system enhance the quality of information disclosure strengthen investor relations
management formulate market value management system and assessment system and lay a solid foundation for the sustainable and
high-quality development of listed companies. At the same time timely and compliant use of mergers and acquisitions equity incentives
cash dividends investor relations management share repurchases and other methods to promote the increase of investment value of
listed companies achieve market recognition of the company's investment value and inject vitality into the company's high-quality
development.
8. Strengthen the leadership of party building and innovate corporate culture
In strict accordance with the unified deployment and arrangement of the Party Central Committee and the superior Party Committee
give full play to the leadership role of the Party Committee in overseeing the overall situation and coordinating all parties and promote
the Party's latest theoretical achievements into the enterprise the front line and the team; make every effort to build a characteristic party
building brand of enterprises in the field of mixed ownership competition and play a vanguard and exemplary leading role of party
members in core key positions such as production line and scientific research and innovation; pay close attention to the construction of
the work style of the cadre team promote the improvement and implementation of the Company's system promote the clarity and
implementation of the corporate strategy and lay a solid foundation and provide guarantee for the healthy development of the Company.XII. Reception survey communication interview and other activities during the reporting
period
□Applicable □Not applicable
Type of Main contents Index of basic
Reception Reception Reception
receptio Reception object discussed and information of the
time place mode
n object information provided survey
Shenzhen Chuanghua Main contents
Qisheng Co. Ltd.: Li discussed: prosperity For details please
Junhui of the polarizer refer to the Investor
Meeting； Shenzhen Dexun industry future Relations Activity
room on the
March 29 Field Instituti Securities Consulting Co. development trend Record Form (No.sixth floor
2024 survey on Ltd.: Ruan Shiwang Chang impact of panel price 2024-01) published
of the
Jianwu Zeng Xianwei fluctuations on by Shenzhen Textile
Company； Hexun Information polarizer price the (Holdings) Co. Ltd.Technology Co. Ltd.: Ye Company's product on Cninfo
Xiaofei Wang Yanqiu; structure the (http://www.cninfo.c
262024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Shanghai Chuhua Capital Company's major om.cn).Co. Ltd.: Li Xianhong customers etc. Data
provided: none.Main contents For details please
Value discussed: progress of refer to the Investor
Online
Online restructuring whether Relations Activity
communic
(https://ww the textile business is Record Form (No.April 19 ation on
w.ir- Others General investors divested when to 2024-02) published
2024 the
online.cn/) change its name how by Shenzhen Textile
network
network to realize strategic (Holdings) Co. Ltd.platform
interaction planning etc. Data on Cninfo
provided: none. (http://www.cninfo.c
om.cn).For details please
Value refer to the Investor
Online Main contents
Online Relations Activity
communic discussed: reasons for
(https://ww Record Form (No.May 19 ation on termination of
w.ir- Others General investors 2024-03) published
2024 the restructuring corporate
online.cn/) by Shenzhen Textile
network planning etc. Data
network (Holdings) Co. Ltd.platform provided: none.interaction on Cninfo
(http://www.cninfo.c
om.cn).The prosperity of LCD
polarizer industry the For details please
market space of OLED refer to the Investor
Li Jie Xue Zhao and Shang
Meeting TV polarizers the Relations Activity
Yingna from Beijing
room on the progress of vehicle- Record Form (No.July 30 Field Instituti Fundamentals Private
sixth floor mounted polarizers 2024-04) published
2024 survey on Equity Fund Management
of the and the Company's by Shenzhen Textile
Center (Limited
Company competitive advantages (Holdings) Co. Ltd.Partnership)
compared with its on Cninfo
peers. Data provided: (http://www.cninfo.c
none. om.cn).The net profit growth For details please
Panorama
business-driven sector; refer to the Investor
"Investor Online
measures to deal with Relations Activity
Relations communic
price fluctuations of Record Form (No.December Interactive ation on
Others General investors raw materials; how to 2024-05) published
12 2024 Platform" the
maintain a competitive by Shenzhen Textile
(https://ir.p5 network
advantage; when to (Holdings) Co. Ltd.w.net platform
change the name etc. on Cninfo
） Data provided: none. ( Http://www.cninfo.com.cn).XIII. Formulation and implementation of market value management system and valuation
improvement plan
Whether the Company has formulated a market value management system.□Yes □No
Whether the Company has disclosed plans for valuation enhancement.□Yes □No
272024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
XIV. Implementation of the action plan of "double improvement of quality return".Whether the company has disclosed the announcement of the action plan of "double improvement of quality return".□Yes □No
282024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section IV Corporate Governance
I. Basic status of corporate governance
During the reporting period the Company operated in strict accordance with the requirements of the Securities Law the Company Law
the Code of Corporate Governance for Listed Companies the Guidelines for Self-Regulation of Companies Listed on Shenzhen Stock
Exchange No. 1 - Standardized Operation of Companies Listed on the Main Board and other relevant laws regulations and normative
documents strengthened risk management and control and ensured the healthy and stable development of the Company. At present the
Company's various governance systems are basically sound its operation is standardized and its legal person governance structure is
perfect which meets the requirements of the normative documents on the corporate governance of listed companies issued by the China
Securities Regulatory Commission.(I) Operation of the general meeting
In 2024 the Company held a total of 4 general meetings in strict accordance with the provisions and requirements of the Company Law
the Company's Articles of Association and the Rules of Procedure for the General Meeting on the convening and holding of general
meeting and the voting procedures were standardized and the resolutions were legal and valid. The Company actively protects the
voting right of small and medium-sized investors and all the general meetings are held on-site and online to fully protect the exercise of
rights of small and medium-sized investors.(II) Operation of the Board of Directors
In 2024 the Board of Directors of the Company held a total of 9 meetings. The convening holding and voting procedures of the Board
of Directors were carried out in strict accordance with the provisions of the Articles of Association and the Rules of Procedures of the
Board of Directors of the Company. All directors performed their duties as directors exercised their rights as directors conscientiously
attended relevant meetings actively participated in training and were familiar with relevant laws and regulations in a conscientious
diligent and honest manner. The independent directors independently performed their duties in strict accordance with relevant laws
regulations and the Company's Articles of Association the Independent Directors System and other regulations and prudently and
carefully deliberated on major matters of the Company and with their independent and objective perspective and rich professional
knowledge put forward constructive opinions and suggestions. The Board of Directos has established strategic planning audit
remuneration assessment and nomination committees. All specialzed committees operate normally and perform earnestly their relevant
duties such as internal audit and remuneration assessment providing scientific and professional advice for the Board's decision-making.(III) Operation of the Board of Supervisors
In 2024 the Board of Supervisors of the Company held 6 meetings. The Board of Supervisors in strict accordance with the requirements
of relevant laws regulations the Articles of Association and the Rules of Procedure of the Board of Supervisors supervised the legality
and compliance of the Company's financial affairs and the performance of duties by the Company's directors managers and other senior
officers to safeguard the legitimate rights and interests of the Company and shareholders. All supervisors conscientiously performed
their obligations and exercised their rights as supervisors according to law. The convening holding and voting procedures of the Board
of Supervisors were legal and the resolutions were legal and valid. The establishment and implementation of the Company's Board of
Supervisors organization and system have played a positive role in improving the corporate governance structure and standardizing the
Company's operation.(IV) Operation of the management
The management of the Company performed its duties in strict accordance with the Company Law the Guidelines for Self-Regulation of
Companies Listed on Shenzhen Stock Exchange No. 1 - Standardized Operation of Companies Listed on the Main Board the Articles of
Association and the Working Rules of the General Manager. The Company conducted internal information communication through the
weekly general manager's office meeting and reviewed performance and gave feedback on budget implementation through quarterly
business analysis meetings to ensure that all kinds of information were transmitted in a timely and effective manner within the Company.The management is fully responsible for the production and operation management of the Company diligently and dutifully performs its
duties effectively implements the decisions of the Board of Directors and the division of labor among the management is clear diligent
and responsible and there is no "insider control".(V) Information disclosure and transparency
In 2024 the Company further improved information transparency and strengthened investor communication. During the reporting period
the Company strictly complied with the Articles of Association the Measures for the Administration of Information Disclosure of Listed
Companies and other relevant provisions abided by the principle of "openness fairness and impartiality" in information disclosure
fulfilled its information disclosure obligations in a true accurate complete and timely manner continuously improved the quality of
information disclosure improved investor relations management and specific measures to protect investors' interests and promoted the
standardized development of the Company. The Company strengthened the management of inside information carried out continuous
education and publicity confidentiality before information disclosure and registration and filing of insiders so as to prevent the
disclosure of inside information from the source to ensure that all shareholders have equal rights and opportunities to access information;
the Company attached great importance to the management of investor relations made full use of various platforms such as telephone
and e-mail especially the Shenzhen Stock Exchange's investor relations interactive platform timely and patiently answered questions
292024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
raised by investors and timely reported the needs suggestions and reasonable demands of investors to the management. At the same
time the Company continued to improve the voting mechanism for small and medium investors. The votes of small and medium
investors were counted separately at the 4 general meetings of the Company in 2024 and the results of the separate counting were
publicly disclosed in the resolution announcement of the general meeting fully protecting the rights of small and medium investors.Whether there is any significant difference between the actual status of corporate governance and the laws administrative regulations
and the provisions issued by the China Securities Regulatory Commission on the governance of listed companies
□Yes □No
There are no significant differences between the actual status of corporate governance and the laws administrative regulations and the
provisions issued by the China Securities Regulatory Commission on the governance of listed companies
II. The independence of the Company from the controlling shareholder and actual owner in
terms of assets personnel finance organization and business
During the reporting period the controlling shareholders of the Company behaved in a standard manner and did not directly or
indirectly intervene in the Company's decision-making and operating activities beyond the general meeting. The Company has
independent and complete business and independent operation abilities and can achieve "five separations" in terms of personnel finance
assets institutions and business.III. Horizontal competitions
□Applicable □Not applicable
V. Relevant information of the annual general meeting and extraordinary general meeting held
during the reporting period
1. General meetings during the reporting period
Investor
Meeting Date of
Session attendance Date of meeting Resolutions made at the meeting
type disclosure
ratio
The First Extraordin
For details please refer to the Announcement
Extraordinary ary February 28 February 28
49.56% No. 2024-06 published by the Company on
General Meeting in general 2024 2024
Cninfo (http://www.cninfo.com.cn).
2024 meeting
Annual For details please refer to the Announcement
2023 Annual General
general 49.64% May 29 2024 May 30 2024 No. 2024-26 published by the Company on
Meeting
meeting Cninfo (http://www.cninfo.com.cn).The Second Extraordin
For details please refer to the Announcement
Extraordinary ary
49.78% July 23 2024 July 24 2024 No. 2024-36 published by the Company on
General Meeting in general
Cninfo (http://www.cninfo.com.cn).
2024 meeting
The Third Extraordin
For details please refer to the Announcement
Extraordinary ary December 25 December 26
49.91% No. 2024-51 published by the Company on
General Meeting in general 2024 2024
Cninfo (http://www.cninfo.com.cn).
2024 meeting
2. The preferred shareholders whose voting rights have been restored requested to convene an extraordinary
general meeting.□Applicable □Not applicable
302024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
V. Directors supervisors and senior officers
1. Basic information
Numbe
r of Numbe
shares Number Number r of
Other Reasons
held at of shares of shares shares
increas for
Emplo Beginnin Ending the increased reduced held at
Gende e/decre increase
Name Age Position yment g date of date of beginni the in the the end
r ase or
status term term ng of current current of the
(shares decrease
the period period period
) in share
period (shares) (shares) (shares
(shares )
)
Secretary of
the Party Incumb February
Yin Kefei Male 50 0 0 0 0 0
Committee ent 10 2021
and Chairman
Deputy
Secretary of
the Party
Incumb February
Ma Jie Male 47 Committee 0 0 0 0 0
ent 18 2025
Director and
General
Manager
Deputy
Secretary of
Wei Incumb February
Male 45 the Party 0 0 0 0 0
Junfeng ent 18 2025
Committee
and Director
Wang Incumb October
Male 53 Director 0 0 0 0 0
Chuan ent 28 2022
Director and
Femal Incumb February
Liu Yu 53 Finance 0 0 0 0 0
e ent 28 2024
Director
Incumb July 23
Meng Fei Male 49 Director 0 0 0 0 0
ent 2023
Decembe
Wu Independent Incumb
Male 62 r 25 0 0 0 0 0
Guangquan director ent
2023
Decembe
Yang Independent Incumb
Male 57 r 25 0 0 0 0 0
Gaoyu director ent
2023
Independent Incumb January
Wang Kai Male 41 0 0 0 0 0
director ent 16 2020
Secretary of
Commission
for Discipline
Incumb January
Ma Yi Male 58 Inspection 0 0 0 0 0
ent 16 2020
Chairman of
the Board of
Supervisors
Yuan Incumb January
Male 44 Supervisor 0 0 0 0 0
Shuwen ent 16 2020
Deputy
Femal Incumb January
Lin Xia 49 General 0 0 0 0 0
e ent 24 2025
Manager
Wang Male 35 Deputy Incumb January 0 0 0 0 0
312024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Zihan General ent 24 2025
Manager
Secretary of
Femal Incumb January
Jiang Peng 54 the Board of 0 0 0 0 0
e ent 16 2015
Directors
Septembe
Employee Incumb
Jiang Yifan Male 39 r 27 0 0 0 0 0
supervisor ent
2024
Director and Februa
Resign January
He Fei Male 47 Finance ry 7 0 0 0 0 0
ed 16 2020
Director 2024
Deputy
Secretary of
the Party Novem
Zhu Resign July 19
Male 60 Committee ber 29 93000 0 0 0 93000 0
Meizhu ed 2017
Director and 2024
General
Manager
Deputy
Secretary of Decembe Januar
Ning Resign
Male 49 the Party r 14 y 22 0 0 0 0 0 0
Maozai ed
Committee 2017 2025
and Director
Sun Resign February July 2
Male 43 Director 0 0 0 0 0 0
Minghui ed 10 2021 2024
Deputy May
Liu Resign January
Male 60 General 31 3000 0 0 0 3000 0
Honglei ed 19 2017
Manager 2024
June
Zhan Femal Employee Resign February
5528000000
Lumei e supervisor ed 10 2021
2024
Total -- -- -- -- -- -- 96000 0 0 0 96000 --
Whether there were any resignations of directors and supervisors or dismissals of senior officers during the reporting period
□Yes □No
1. The original director and Finance Director of the Company He Fei left office on February 7 2024. On February 7 2024 the 27th
meeting of the 8th Board of Directors was held which agreed to appoint Liu Yu as the Finance Director and the person in charge of
finance of the Company and agreed to nominate Ms. Liu Yu as the candidate for non-independent director of the 8th Board of Directors.For details please refer to the Announcement on Adjusting the Finance Director and Nominating Director Candidates (2024-04)
published by the Company on Cninfo (http://www.cninfo.com.cn); On February 28 2024 the Company held the first extraordinary
general meeting in 2024 and elected Liu Yu as the non-independent director of the company. For details please refer to the
Announcement on the Resolution of the First Extraordinary General Meeting in 2024 (2024-06) published by the Company on Cninfo
(http://www.cninfo.com.cn).
2. Liu Honglei the original deputy general manager of the Company retired on May 13 2024. For details please refer to the
Announcement on the Retirement of the Company's Deputy General Manager (No. 2024-27) published by the Company on Cninfo
(http://www.cninfo.com.cn).
3. Zhan Lumei the original employee representative supervisor of the Company retired on June 28 2024. For details please refer to the
Announcement on the Retirement of the Employee Representative Supervisor (2024-29) published by the Company on Cninfo
(http://www.cninfo.com.cn); The Company held a staff meeting on September 13 2024 and elected Jiang Yifan as the employee
representative supervisor of the eighth Board of Supervisors of the Company. For details please refer to the Announcement on Adding
the Employee Representative Supervisor of the Eighth Board of Supervisors (2024-40) published by the Company on Cninfo
(http://www.cninfo.com.cn).
4. Sun Minghui the former director of the Company resigned on July 2 2024. On July 5 2024 the Company held the 31st meeting of
the 8th Board of Directors and agreed to nominate Meng Fei as the non-independent director candidate of the 8th Board of Directors of
the Company. For details please refer to the Announcement on Adjusting Directors and Nomination of Director Candidates (2024-32)
published by the Company on Cninfo (http://www.cninfo.com.cn); On July 23 2024 the Company held the second extraordinary
general meeting in 2024 and elected Meng Fei as the non-independent director of the Company. For details please refer to the
Announcement on the Resolution of the Second Extraordinary General Meeting in 2024 (No. 2024-36) published by the Company on
Cninfo (http://www.cninfo.com.cn).
322024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
5. Zhu Meizhu the former Deputy Secretary of the Party Committee director and general manager of the Company retired on
November 29 2024. For details please refer to the Announcement on the Retirement and Resignation of the Company's Director and
General Manager (No. 2024-45) published by the Company on Cninfo (http://www.cninfo.com.cn).
6. Wang Chuan the director and former deputy general manager of the Company resigned as the deputy general manager of the
company on January 21 2025 and Ning Maozai the former Deputy Secretary of the Party Committee and director of the Company
resigned on January 22 2024. On January 24 2025 the 36th meeting of the 8th Board of Directors was held and it was agreed to
appoint Ma Jie as the deputy general manager of the Company and Lin Xia and Wang Zihan as the deputy general manager of the
Company. It was also agreed to nominate Ma Jie and Wei Junfeng as candidates for non-independent directors of the 8th Board of
Directors of the Company. For details please refer to the Announcement on Adjusting Directors and Senior Officers (2025-02)
published by the Company on Cninfo (http://www.cninfo.com.cn); On February 18 2025 the Company held the first extraordinary
general meeting in 2025 and elected Ma Jie and Wei Junfeng as the non-independent directors of the Company. For details please refer
to the Announcement on the Resolution of the First Extraordinary General Meeting in 2025 (2025-06) published by the Company on
Cninfo (http://www.cninfo.com.cn).As of the disclosure date of this report except for the above changes there were no changes in other directors supervisors and senior
officers of the Company.Changes in directors supervisors and senior officers of the Company
□Applicable □Not applicable
Name Position Type Date Reasons
He Fei Director and Finance Director Resigned February 7 2024 Job transfer
Liu Honglei Deputy General Manager Resigned May 13 2024 Retired
Employee representative
Zhan Lumei Resigned June 28 2024 Retired
supervisor
Sun Minghui Director Resigned July 2 2024 Job transfer
Deputy Secretary of the Party
Zhu Meizhu Committee Director and Resigned November 29 2024 Retired
General Manager
Deputy Secretary of the Party
Ning Maozai Resigned January 22 2025 Job transfer
Committee and Director
Wang Chuan Deputy General Manager Resigned January 21 2025 Job transfer
2. Office holding
Professional background main work experience and current main responsibilities of the current directors supervisors and senior officers
of the Company
Yin Kefei male born in July 1974 master's degree engineer member of the Communist Party of China. Successively served as the
Deputy General Manager of Ganzhou Shenran Natural Gas Co. Ltd. of Shenzhen Gas Group Co. Ltd.; member of Party Leadership
Group and Deputy Director of Dongguan SASAC Guangdong Province; Deputy Secretary-general of Dongguan Municipal Government
of Guangdong Province; Secretary and Director of the Party Leadership Group of Beijing Liaison Office of Dongguan Municipal
Government of Guangdong Province; Deputy Secretary of the Party Committee Director and General Manager of Dongguan Financial
Holdings Group Co. Ltd.; Chairman of the Components and IC International Trade Center Co. Ltd; Director of Shenzhen
Environmental Protection Technology Group Co. Ltd. He is currently the Deputy General Manager of Shenzhen Investment Holdings
Co. Ltd. the Director of Research Institute of Tsinghua University in Shenzhen and the Secretary of the Party Committee and
Chairman of the Company.Ma Jie male born in November 1977 master's degree and a member of the Communist Party of China. He successively served as a
section member of Luohu Branch of Shenzhen Public Security Bureau and Personnel Bureau of Yantian District of Shenzhen; Director
and Deputy Secretary of the General Office of Shenzhen Luohu District Committee of the Communist Youth League; Deputy Director
and Researcher of Shenzhen Luohu District Environment Protection and Water Affairs Bureau; Director of Discipline Inspection and
Supervision Office and Deputy Secretary of Commission for Discipline Inspection of Shenzhen SDG Group Co. Ltd.; Secretary of
Commission for Discipline Inspection and Chairman of the Board of Supervisors of Shenzhen Urban Construction and Development
(Group) Co. Ltd. He currently serves as the Deputy Secretary of the Party Committee Director and General Manager of the Company.Wei Junfeng male born in November 1979 a master's degree and a member of the Communist Party of China. He successively served
as the secretary of the board of directors and the project manager of the general department of Shenzhen International Tendering Co.Ltd. the director and senior supervisor of the board office (during which he was also the risk control director and administrative director
of Shenzhen Investment Holdings Donghai Investment Co. Ltd.) and the senior supervisor and deputy director of the Strategy Research
Department (the Board Office) of Shenzhen Investment Holdings Co. Ltd.. He is currently the Deputy Secretary of the Party Committee
and Director of the Company.Wang Chuan male born in March 1972 master's degree economist engineer and member of the Communist Party of China. He
successively served as the Deputy Director Director and Assistant Director of the Cooperative Development Department of Shenzhen
332024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
National High-tech Industry Innovation Center the Director General Manager and Chairman of Shenzhen Innovation Starting Point
Technology Co. Ltd. and the Deputy General Manager of Shenzhen Tong Chan Group Co. Ltd. He is currently the director of the
Industrial Management Department of Shenzhen Investment Holdings Co. Ltd. and a director of the Company.Liu Yu female born in November 1971 bachelor degree senior accountant Chinese certified public accountant and member of the
Communist Party of China. She successively served as the Finance Director of Shenzhen WOMAN Magazine the Deputy General
Manager of Shenzhen WOMAN Magazine and the Director and Finance Director of Shenzhen Wuzhou Guest House Group Co. Ltd.She is currently a director and Finance Director of the company.Meng Fei male born in November 1975 bachelor degree senior accountant. He has worked in Shenzhen Rainbow Mall Co. Ltd. and
Shenzhen Press Group and successively served as a senior supervisor of the Finance Department of Shenzhen Investment Holdings Co.Ltd. He is currently the deputy director of the Finance Department (Settlement Center) of Shenzhen Investment Holdings Co. Ltd. the
supervisor of Shenzhen High-tech Zone Investment and Development Group Co. Ltd. supervisor of Shenzhen Investment Holdings
Donghai Investment Co. Ltd. and the director of the Company.Wu Guangquan male born in May 1962 master's degree from Tongji University and a member of the Communist Party of China. He
once served as the assistant manager deputy manager and manager of the Accounting and Finance Department deputy chief accountant
deputy general manager general manager and chairman of China National Aero-Technology Shenzhen Co. Ltd.; Chairman of Jiangxi
Jiangnan Trust Investment Co. Ltd.; Secretary of the Party Committee Chairman and General Manager of AVIC International Holding
Corporation; special officer of Aviation Industry Corporation of China Ltd.; Secretary of the Party Committee and Chairman of China
Aviation Industry General Aircraft Co. Ltd.; He has also served as the chairman and legal representative of FIYTA Precision
Technology Co. Ltd. the chairman and legal representative of Tianma Microelectronics Co. Ltd. the chairman and legal representative
of Rainbow Digital Commercial Co. Ltd. the chairman and legal representative of AVIC Real Estate Holding Co. Ltd. (now renamed
as China Merchants Property Operation & Service Co. Ltd.) the chairman of Shennan Circuits Co. Ltd. the executive director of China
South City Holdings Limited and the chairman of the Board of Directors of Continental Aerospace Technologies Holding Limited. He
is currently the chairman of the Federation of Shenzhen Industries the chairman of the presidium and the director of the Global Industry
Research Center of the China Federation of Industrial Economics the chairman of Shenzhen Jinling Era Technology Co. Ltd. the
chairman of Shenzhen Fanjing Investment Co. Ltd. the chairman of Shenzhen Fanjing Intelligent Enterprise Management Consulting
Co. Ltd. the independent director of CALB Group Co. Ltd. the independent director of Shenzhen Leaguer Co. Ltd. and the
independent director of the Company.Yang Gaoyu male born in February 1968 a graduate student of Business Administration at New York Institute of Technology a
Chinese Certified Public Accountant a Chinese Certified Tax Agent a forensic accounting expert and a member of China Zhi Gong
Party. He used to be the accounting officer of A-Fontane Fabrication Industrial (Shenzhen) Co. Ltd. and the audit officer audit
manager partner and chief partner of Shenzhen Changcheng Accountant Office Co.Ltd. He is currently the director of the Shenzhen
branch of Zhongzheng Tiantong Certified Public Accountants (Special General Partnership) the executive director and general manager
of Zhongtian Dexiang Taxation Firm (Shenzhen) Co. Ltd. the executive director and general manager of Shenzhen Baofuqin Enterprise
Management Consulting Co. Ltd. and is also a member of the Seventh Committee of the CPPCC of Shenzhen a member of the
Legislative Consultation Committee of the CPPCC of Shenzhen the vice president of the Shenzhen New Social Stratum Association a
member of the Seventh Council of the China Certified Tax Agents Association the executive member of the council and vice president
of the Shenzhen Tax Agents Association the vice president of the Shenzhen Futian District Accounting Society the executive president
of the Legal Taxation and Finance Association of Shenzhen Jiangxi Chamber of Commerce an expert member of Guangdong
Province's third-party supervision and assessment mechanism for compliance of enterprises involved in cases a visiting professor of the
School of Accountancy of Jiangxi University of Finance and Economics an invited professor of the College of Modern Economics &
Management of Jiangxi University of Finance and Economics a part-time master's supervisor of the Shenzhen Research Institute of
Jiangxi University of Finance and Economics an entrepreneurship tutor of the Innovation and Entrepreneurship Center of the Shenzhen
Research Institute of Jiangxi University of Finance and Economics an off-campus tutor of the School of Economics of Shenzhen
University for MPAcc an independent director of Shenzhen New Trend International Logis-Tech Co. Ltd. an independent director of
Shenzhen Chotest Technology Inc. and an independent director of the Company.Wang Kai male born in September 1983 Ph.D. of Huazhong University of Science and Technology member of the Communist Party
of China professor of the Department of Electronic and Electrical Engineering of Southern University of Science and Technology
National Excellent Youth and Outstanding Youth of Guangdong Province. He serves as a member of the Technical Committee of the
Beijing Branch of the Society for Information Display (SID) a member of the Optical Display Professional Committee of the Chinese
Society for Optical Engineering and the deputy director of the Key Laboratory of Quantum Dot Advanced Display and Lighting of
Guangdong Provincial General Colleges and Universities. He is also the technical consultant of Shenzhen Planck Innovation Technology
Co. Ltd. and an independent director of the Company.(II) Supervisors
Ma Yi male born in August 1966 bachelor degree member of the Communist Party of China with the title of assistant economist. He
has successively served as a cadre of the Automobile Manufacturing Plant of Hainan Motor Transportation Corporation Business
Director and General Manager Assistant of Guangzhou Branch of Shenzhen Shenkyu International Logistics Co. Ltd. Operation
Director of COSCO Logistics Guangzhou Attend Logistics Co. Ltd. General Manager of Guangzhou Branch of Shenzhen Shenkyu
International Logistic Co. Ltd. Director and Assistant Director of the Planning and Development Department of Shenzhen Highway
Passenger and Freight Transport Service Center Stationmaster of Futian Station Director General Manager and Deputy Secretary of the
342024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Party Committee of Shenzhen Highway Passenger and Freight Transport Service Center Co. Ltd. He is currently the Secretary of
Commission for Discipline Inspection of the Company and the Chairman of the Board of Supervisors.Yuan Shuwen male born in May 1980 master's degree senior accountant and member of the Communist Party of China. He has
served as the stationmaster of Shigu Operation and Management Station of Hengshan County Rural Management Administration the
financial supervisor of Shenzhen Fengcheng Iron Wire Products Co. Ltd. the project manager of BDO China Shu Lun Pan Certified
Public Accountants LLP Shenzhen Branch the general ledger accountant of the Finance Department of Shenzhen Zhenye (Group) Co.Ltd. and is currently the deputy director of the Assessment and Distribution Department of Shenzhen Investment Holdings Co. Ltd.and the supervisor of the Company.Jiang Yifan male born in July 1985 postgraduate degree a doctor of laws. He successively served as senior market analyst and project
manager of Grok Market Consulting Co. Ltd. director and legal advisor of the Development Department of Guangzhou Huijian
Technology Co. Ltd. and asset preservation manager ofthe asset preservation department ofGuangzhou Branch of Jiangxi Bank. He is
currently the deputy director of the risk control and compliance department and the employee supervisor of the Company.(III) Senior officers
Lin Xia female born in October 1975 bachelor's degree member of the Communist Party of China. He has served as the business
supervisor of the Legal Supervision and Audit Department of Shenzhen Shenhua Group Co. Ltd. the legal supervisor of the Board
Office the deputy director and director of the Office and director of the General Office (Process and Information Center) of Shenzhen
Properties & Resources Development (Group) Ltd. the deputy secretary of the branch committee (full-time rank) and the chairman of
the labor union of Shenzhen Huangcheng Real Estate Co. Ltd.. and the deputy general manager of Shenzhen Municipal People's
Congress Cadre Training Center Co. Ltd. He is currently the deputy general manager of the Company.Wang Zihan male born in April 1989 bachelor's degree member of the Communist Party of China. He has successively served as the
Deputy Director of the Marketing Department of the Commercial Operation Branch of Shenzhen SEG Group Co. Ltd. the General
Manager of SEG Creative Space of Shenzhen SEG Entrepreneurship Hub Co. Ltd. and the Deputy General Manager and General
Manager of the Operation Management Department of Shenzhen SEG Group Co. Ltd. He is currently the deputy general manager of the
Company.Jiang Peng female born in October 1970 bachelor's degree member of the Communist Party of China. She has successively served as
an office staff member and deputy section chief of the General Office of Shandong Group Corp of Fisheries Enterprises the section
chief and deputy director of the Board of Directors Office and the representative of securities affairs of Shandong Zhonglu Oceanic
Fisheries Co. Ltd. the representative of securities affairs of Huafu Top Dyed Melange Yarn Co. Ltd. the representative of securities
affairs of the Company and the director of the Secretary of the Board of Directors Office. She is currently the Secretary of the Board of
Directors of the Company and also serves as a director of Shenzhen SAPO Photoelectric Co. Ltd.*.Positions held in shareholders
□Applicable □Not applicable
Whether to receive
Name of the
Name of Positions held in Beginning date of Ending date of remuneration
appointed
shareholder shareholders term term allowance from the
personnel
shareholder unit
Shenzhen
Deputy General
Yin Kefei Investment January 11 2021 Yes
Manager
Holdings Co. Ltd.Director of
Shenzhen
Industry
Wang Chuan Investment May 23 2018 No
Management
Holdings Co. Ltd.Department
Deputy Director of
Shenzhen Financial
Meng Fei Investment Department September 18 2017 Yes
Holdings Co. Ltd. (Settlement
Center)
Deputy Director of
Shenzhen
Assessment and
Yuan Shuwen Investment September 18 2017 Yes
Distribution
Holdings Co. Ltd.Department
Description of the
positions held in None
shareholders
*.Position in other entities
□Applicable □Not applicable
352024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Name of Whether to receive
the Positions held in Beginning date of Ending date of remuneration
Name of other entities
appointed other entities term term allowances in
personnel other entities
Research Institute of
Yin Kefei Tsinghua University in Council member March 17 2023 No
Shenzhen
Shenzhen International
Yin Kefei Vice President July 24 2023 No
Chamber of Commerce
ULTRARICH
Yin Kefei INTERNATIONAL Director September 4 2023 No
LIMITED
Shenzhen International
Candidates for the
Yin Kefei Investment & Promotion January 20 2022 No
2nd President
Association
Hebei Shenbao
Ma Jie Investment Development Supervisor April 20 2021 No
Co. Ltd.Wang Shenzhen Shenfubao
Director June 21 2018 No
Chuan (Group) Co. Ltd.ULTRARICH
Wang
INTERNATIONAL Director June 27 2018 No
Chuan
LIMITED
Wang Shenzhen Tong Chan December 17
Director No
Chuan Group Co. Ltd. 2020
Shenzhen High-tech Zone
Investment and November 25
Meng Fei Supervisor No
Development Group Co. 2022
Ltd.Shenzhen Investment
Meng Fei Holdings Donghai Supervisor October 17 2017 No
Investment Co. Ltd.Shenzhen Special
Economic Zone Real
Meng Fei Director May 16 2024 No
Estate & Properties
(Group) Co. Ltd.Hong Kong Investment
Holdings Co. Ltd. under
Meng Fei Director July 18 2024 No
Shenzhen Investment
Holdings
Shenzhen Water
Yuan
Planning&Design Supervisor February 20 2023 No
Shuwen
Institute Co. Ltd.Executive Director
Wu Meishan Venture Capital September 28
and General No
Guangquan Co. Ltd. 2021
Manager
Wu Shenzhen Jinling Era Chairman and November 11
No
Guangquan Technology Co. Ltd. General Manager 2022
Executive Director
Wu Shenzhen Fanjing December 24
and General No
Guangquan Investment Co. Ltd. 2019
Manager
Shenzhen Fanjing
Executive Director
Wu Intelligent Enterprise
and General July 9 2021 No
Guangquan Management Consulting
Manager
Co. Ltd.Shanghai Yutian Kongka
Wu December 20
Aviation Technology Co. Director No
Guangquan 2022
Ltd.Wu CALB Group Co. Ltd. Independent December 25 Yes
362024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Guangquan director 2023
Wu Shenzhen Leaguer Co. Independent December 25
Yes
Guangquan Ltd. director 2021
Zhongzheng Tiantong
Certified Public
Yang
Accountants (Special Director October 1 2013 Yes
Gaoyu
General Partnership)
Shenzhen Branch
Shenzhen Ulan Binhai
Yang
Industrial Investment Co. Director February 5 2016 No
Gaoyu
Ltd.Shanghai Dasheng
Yang Independent Non-
Agricultural Financial August 23 2016 Yes
Gaoyu Executive Director
Technology Co. Ltd.Shenzhen Jiangcairen
Yang
Education Management Director November 8 2018 No
Gaoyu
Co. Ltd.Shenzhen Ganfan Dazi
Yang
Catering Management General manager May 31 2018 No
Gaoyu
Co. Ltd.Zhongtian Dexiang Executive Director
Yang
Taxation Firm and General July 17 2019 Yes
Gaoyu
(Shenzhen) Co. Ltd. Manager
Yang Shenzhen Sannuo Independent
July 24 2020 Yes
Gaoyu Acousticlink Co. Ltd. director
Shenzhen Baofuqin Executive Director
Yang December 20
Enterprise Management and General No
Gaoyu 2021
Consulting Co. Ltd. Manager
Yang Shenzhen Chotest Independent
October 17 2022 Yes
Gaoyu Technology Inc. director
Shenzhen New Trend
Yang Independent
International Logis-Tech April 10 2023 Yes
Gaoyu director
Co. Ltd.Yang Shenzhen Hangsheng
Director June 25 2023 No
Gaoyu Electronics Co. Ltd.Southern University of Long-term
Wang Kai January 1 2024 Yes
Science and Technology professor
Shenzhen Planck
Technical
Wang Kai Innovation Technology August 1 2024 Yes
Consultant
Co. Ltd.General Manager of
Wang
Shenzhen SEG Hi-Tech General manager January 31 2024 No
Zihan
Industrial Co. Ltd.Explanation
of serving
None
in other
entities
Penalties imposed by securities regulators on current directors supervisors and senior officers as well as those left the post in the past
three years
□Applicable □Not applicable
3. Remuneration of directors supervisors and senior officers
Decision-making procedures determination basis and actual payment of remuneration for directors supervisors and senior officers
During the reporting period the remuneration of directors and senior officers who received remuneration from the Company was
determined in accordance with the Company's Director Remuneration Management System and the Measures for Annual Performance
Assessment and Remuneration Management of Senior Officers of STHC. the remuneration of independent directors shall be determined
according to the resolution of the general meeting; the remuneration of supervisors who receive remuneration from the Company shall
be determined according to their positions in the Company.
372024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Remuneration of directors supervisors and senior officers during the reporting period
Unit: RMB10000
Total pre-tax
Whether get paid
Employment compensation
Name Gender Age Position from related parties
status received from
of the Company
the Company
Secretary of the Party
Yin Kefei Male 50 Committee Chairman and Incumbent 0 Yes
Director
Deputy Secretary of the Party
Ma Jie Male 47 Committee Director and Incumbent 0 No
General Manager
Deputy Secretary of the Party
Wei Junfeng Male 45 Incumbent 0 No
Committee and Director
Wang Chuan Male 53 Director Incumbent 57.81 No
Liu Yu Female 53 Director and Finance Director Incumbent 60.72 No
Meng Fei Male 49 Director Incumbent 0 Yes
Wu Guangquan Male 62 Independent director Incumbent 12 No
Yang Gaoyu Male 57 Independent director Incumbent 12 No
Wang Kai Male 41 Independent director Incumbent 12 No
Secretary of Commission for
Discipline Inspection
Ma Yi Male 58 Incumbent 103.92 No
Chairman of the Board of
Supervisors
Yuan Shuwen Male 44 Supervisor Incumbent 0 Yes
Lin Xia Female 49 Deputy General Manager Incumbent 0 No
Wang Zihan Male 35 Deputy General Manager Incumbent 0 No
Secretary of the Board of
Jiang Peng Female 54 Incumbent 95.29 No
Directors
Jiang Yifan Male 39 Employee supervisor Incumbent 47.42 No
Former director and general
Zhu Meizhu Male 60 Resigned 90.73 No
manager
Ning Maozai Male 49 Former director Resigned 95.29 No
Former Director and Finance
He Fei Male 47 Resigned 36 No
Director
Sun Minghui Male 43 Former director Resigned 0 Yes
Former Deputy General
Liu Honglei Male 60 Resigned 40.27 No
Manager
Zhan Lumei Female 55 Original employee supervisor Resigned 29.85 No
Total -- -- -- -- 693.30 --
Note: The compensation of directors supervisors and senior executives who receive salaries in the company includes basic salary and
partial performance-based pay as well as partial performance-based pay paid in the previous year after the completion of the current
year's assessment; Ma Jie Wei Junfeng Lin Xia and Wang Zihan have been employed by the company since January 2025 and have not
received any salary in 2024.VI. Directors' performance of duties during the reporting period
1. Board of Directors during the reporting period
Session Date of meeting Date of disclosure Resolutions made at the meeting
For details please refer to the
27th Meeting of the 8th Board of Announcement No. 2024-03 published by
February 7 2024 February 8 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).
28th Meeting of the 8th Board of For details please refer to the
March 26 2024 March 27 2025
Directors Announcement No. 2024-09 published by
382024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the Company on Cninfo
(http://www.cninfo.com.cn).For details please refer to the
29th Meeting of the 8th Board of Announcement No. 2024-18 published by
April 28 2024 April 30 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).For details please refer to the
30th Meeting of the 8th Board of Announcement No. 2024-22 published by
May 16 2024 May 17 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).For details please refer to the
31st Meeting of the 8th Board of Announcement No. 2024-30 published by
July 5 2024 July 6 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).Only reviewing one item in the semi
32nd Meeting of the 8th Board of annual report without objection or
August 21 2024
Directors abstention is exempt from disclosing the
resolution announcement.For details please refer to the
33rd Meeting of the 8th Board of Announcement No. 2024-39 published by
September 27 2024 September 28 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).Only reviewing the third quarter report
34th Meeting of the 8th Board of without objection or abstention is exempt
October 29 2024
Directors from disclosing the resolution
announcement.For details please refer to the
35th Meeting of the 8th Board of Announcement No. 2024-46 published by
December 6 2024 December 7 2024
Directors the Company on Cninfo
(http://www.cninfo.com.cn).
2. Attendance of directors at the board meeting and the general meeting
Attendance of directors at the board meeting and general meeting
Whether to
Number of
Number of fail to attend
the board Number of Number of Number of
the board the meeting Number of
meetings to the board the board absences
Name of meetings of the Board general
be attended meetings meetings from the
director attended by in person for meetings
during this attended on attended by board
communicati two attended
reporting site proxy meetings
on consecutive
period
times
Yin Kefei 9 6 3 0 0 No 4
Ma Jie 0 0 0 0 0 No 0
Wei Junfeng 0 0 0 0 0 No 0
Wang Chuan 9 6 3 0 0 No 0
Liu Yu 8 5 3 0 0 No 4
Meng Fei 4 3 1 0 0 No 0
Wu
9 0 9 0 0 No 3
Guangquan
Yang Gaoyu 9 1 8 0 0 No 3
Wang Kai 9 1 8 0 0 No 4
Zhu Meizhu 8 5 3 0 0 No 3
Ning Maozai 9 6 3 0 0 No 4
Sun Minghui 4 2 2 0 0 No 0
Description of the failure to attend the board meetings in person for two consecutive times
None
392024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Objections raised by directors to relevant matters of the Company
Whether the directors have raised any objections to relevant matters of the Company
□Yes□No
During the reporting period the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the relevant suggestions of the directors to the Company have been adopted
□Yes □No
Director's statement on the adoption or non-adoption of the Company's relevant proposals
During the reporting period all directors of the Company diligently and responsibly carried out their work in strict accordance with the
relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange as well as the Company's Articles of
Association Rules of Procedures of the Board of Directors and other systems. They paid close attention to the Company's standardized
operation and management put forward relevant opinions on the Company's major governance and operation decisions according to the
Company's actual situation and formed a consensus after full communication and discussion and they resolutely supervised and
promoted the implementation of the resolutions of the Board of Directors to ensure that the decisions are scientific timely and efficient
and may safeguard the legitimate rights and interests of the Company and all shareholders.VII. Information on special committees under the Board during the reporting period
Name Number Other
Details of
of Membersh of Content of the Important opinions and perform
Date of meeting objections
committ ip meeting meeting suggestions put forward ance of
(if any)
ee s held duties
Deliberated on and It is agreed to nominate Liu
Nomina nominated the non- Yu as the non-independent
Wu
tion independent director candidate and it is
Guangqua
Commit February 4 directors of the 8th agreed that the general
n Yang 1 None None
tee of 2024 Board of Directors manager shall nominate the
Gaoyu
the and appointed the Finance Director and the
Wang Kai
Board Finance Director of nomination shall be submitted
the Company. to the Board for deliberation.Deliberated on
Nomina matters relating to
Wu It is agreed to nominate Feng
tion the nomination of
Guangqua Meng non-independent
Commit candidates for non-
n Yang 1 July 2 2024 director and submitted it to None None
tee of independent
Gaoyu the Board of Directors for
the directors of the 8th
Wang Kai deliberation.Board Board of Directors
of the Company.It is believed that the
formulation of the
performance assessment
indicators of the senior
Deliberated on officers of the Company for
Remune
Yang matters related to 2024 complies with the Code
ration
Gaoyu the performance of Corporate Governance for
Apprais September 23
Wang 1 assessment Listed Companies the None None
al 2024
Kai Liu indicators of the Articles of Association of the
Commit
Yu Company's senior Company and the Working
tee
officers for 2024. Regulations of the
Remuneration Assessment
Committee of the Board of
Directors and other relevant
provisions.Remune Wu 1 December 2 Deliberated on It is believed that the None None
402024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
ration Guangqua 2024 matters related to formulation of the 2023
Apprais n Wang the formulation of annual business performance
al Kai Liu the senior officers' assessment and remuneration
Commit Yu 2023 annual management plan for senior
tee business officers of the company
performance complies with the Code of
assessment and Corporate Governance for
remuneration Listed Companies the
management plan. Articles of Association of the
Company and the Working
Regulations of the
Remuneration Assessment
Committee of the Board of
Directors and other relevant
provisions.The Audit Committee fully
affirmed the internal audit
The Audit work of the Audit Department
Department in 2023. The Audit
reported to the Committee evaluated the
Audit Committee on effectiveness of the
Wu
the summary of the Company's internal control in
Guangqua
Audit 2023 internal audit the third quarter of 2024 and
n Yang January 12
Commit 1 work and the 2024 believed that the Company None None
Gaoyu 2024
tee audit plan and maintained effective internal
Ning
communicated on control over financial report
Maozai
matters related to and non-financial report in all
the entry of the material aspects in accordance
annual report with the requirements of the
auditor. enterprise's internal control
norm system and relevant
regulations.The Audit
The Audit Committee
Department
recognized the
reported the
implementation of the internal
summary of the
audit work in the first quarter
internal audit work
Wu and requested the Audit
in the first quarter
Guangqua Department to continue to
Audit and the work plan
n Yang carry out the audit work in
Commit 1 April 26 2024 for the second None None
Gaoyu accordance with the
tee quarter to the Audit
Ning requirements of the annual
Committee and the
Maozai internal audit work plan for
Audit Committee
the second quarter of 2024;
put forward
and deliberated on and
requirements for the
adopted the First Quarterly
internal audit
Report of 2024.related work.The Audit Committee
believes that Liu Yu is
Wu
Deliberated on the qualified to be the Finance
Guangqua
Audit Proposal on Director of the Company and
n Yang February 4
Commit 1 Appointing the agrees that the Finance None None
Gaoyu 2024
tee Finance Director of Director shall be nominated
Ning
the Company. by the General Manager and
Maozai
it shall be submitted to the
Board for deliberation.Wu The Audit The Audit Committee
Audit
Guangqua February 28 Committee proposed that all relevant
Commit 1 None None
n Yang 2024 communicated with departments should actively
tee
Gaoyu the annual report cooperate with the
412024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Ning auditor on the accountants to provide
Maozai progress of the audit relevant information; the
of the Company's accounting firm should
2023 annual report complete the annual audit
and the preliminary work in strict accordance with
findings during the the annual audit plan in terms
audit and put of quality quantity and
forward agreed time. If any important
requirements and problem is found it shall
suggestions for the communicate with the Audit
follow-up work of Committee in time.the annual audit.The Audit
The Audit Committee
Department
recognized the
reported the
implementation of the semi-
summary of the
annual internal audit work
semi-annual internal
Wu and requested the Audit
audit work and the
Guangqua Department to continue to
Audit work plan for the
n Yang carry out the audit work in
Commit 1 August 21 2024 third quarter to the None None
Gaoyu accordance with the
tee Audit Committee
Ning requirements of the annual
and the Audit
Maozai internal audit work plan for
Committee put
the third quarter of 2024; and
forward
deliberated on and adopted
requirements for the
the Semi-annual Report of
internal audit
2024.
related work.Deloitte's
accountant reported
to the Audit
Committee on the
annual review work
in 2023; Yang
Wu
Gaoyu made a The Audit Committee
Guangqua
Audit report on the adopted the proposal of this
n Yang
Commit 1 March 25 2024 performance of the meeting and agreed to submit None None
Gaoyu
tee Audit Committee in it to the Board of Directors
Ning
2023; the Audit for deliberation.
Maozai
Committee
deliberated on eight
proposals including
the 2023 annual
report of the
Company.The Audit
The Audit Committee
Department
recognized the
reported the
implementation of the internal
summary of the
audit work in the third quarter
internal audit work
Wu and requested the Audit
in the third quarter
Guangqua Department to continue to
Audit and the work plan
n Yang October 28 carry out the audit work in
Commit 1 for the fourth None None
Gaoyu 2024 accordance with the
tee quarter to the Audit
Ning requirements of the annual
Committee and the
Maozai internal audit work plan for
Audit Committee
the fourth quarter of 2024;
put forward
and deliberated on and
requirements for the
adopted the Third Quarterly
internal audit
Report of 2024.related work.Audit Wu 1 December 5 Deliberated on the It is agreed to carry out None None
422024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Commit Guangqua 2024 Proposal on the hedging business to manage
tee n Yang Implementation of the foreign exchange risk
Gaoyu Foreign Exchange exposure.Ning Hedging Business
Maozai by Subsidiaries
submitted by the
Finance Department
and the attached
Feasibility Analysis
Report on the
Implementation of
Foreign Exchange
Hedging and the
Risk Control Plan
for the
Implementation of
Foreign Exchange
Hedging Business.VIII. Work of the Board of Supervisors
Whether the Company has risks found by the Board of Supervisors during the supervision activities in the reporting period
□Yes□No
The Board of Supervisors has no objection to the supervision matters during the reporting period.IX. Employees of the Company
1. Number professional composition and education level of employees
Number of employees of the parent company at the end of the
55
reporting period
Number of in-service employees of major subsidiaries at the
1281
end of the reporting period
Total number of in-service employees at the end of the
1389
reporting period
Total number of employees receiving salaries in the current
1389
period
Number of retired employees whose expenses shall be borne by
0
the parent company and major subsidiaries
Professional composition
Professional composition category Number of employees of each category
Production personnel 988
Sales personnel 14
Technical personnel 174
Financial personnel 30
Administrative staff 183
Total 1389
Education level
Education level category Quantity
Master's degree or above 42
Undergraduate 225
Junior college 163
432024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Below junior college 959
Total 1389
2. Remuneration policy
In 2024 the Company carried out employee remuneration management in strict accordance with relevant national laws and regulations
and the Company's remuneration management system to ensure fair and reasonable employee remuneration give corresponding rewards
and incentives to employees' contributions promote the common development of employees and the Company and reflect more
humanistic care of the Company.
3. Training plan
In combination with the Company's development strategy continue to improve the Company's talent training system and strengthen the
exchange and learning of personnel of STHC. First in combination with the work of the department and the actual situation of
employees provide appropriate courses for employees according to the existing network academy resources including general
management courses and professional courses. During the reporting period further improve the professional level and comprehensive
quality of employees through the allocation of internal and external training courses; second continue to create an atmosphere of
"reading again after returning from a hundred battles" and encourage employees to love reading and read good books; third in
combination with the Company's business development needs and the actual work of each department organize key employees to
participate in professional training arranged by superior units and professional institutions to further improve the comprehensive ability
professional skills and professional quality of employees.
4. Outsourcing of labor services
□Applicable □Not applicable
X. The Company's profit distribution and conversion of capital reserves into share capital in the
current year
Formulation implementation or adjustment of the profit distribution policy during the reporting period especially the cash dividend
policy
□Applicable □Not applicable
On May 29 2024 the Company held the 2023 annual general meeting to deliberate on and adopt the 2023 annual profit distribution plan.The Company's 2023 annual profit distribution plan is: based on the distributable profits of the consolidated statements and based on the
total equity of 506521849 shares of the Company as of December 31 2023 (including 457021849 A shares and 49500000 B shares)
the Company would distribute cash dividends of RMB 0.65 (including tax) to all shareholders for every 10 shares with a total cash
dividend of RMB 32923920.19 (including tax) that should be paid and the cash dividend of RMB 32923916.72 (including tax) that
were actually paid and the remaining undistributed profits would be carried forward to the next year; no bonus shares would be issued
and no capital reserve would be converted into share capital.If there is a change in the total equity of the Company before the implementation of the distribution plan the distribution will be made
according to the total equity on the equity registration date when the distribution plan is implemented in the future based on the fixed
ratio and the specific amount will be subject to the actual distribution.Special instructions for cash dividend policy
Whether it complies with the Articles of Association or the resolutions of the general meeting of
Yes
shareholders:
Whether the dividend standards and proportions are explicit and clear: Yes
Whether relevant decision-making procedures and mechanisms are complete: Yes
Whether the Independent Directors have fulfilled their duties and played their due roles: Yes
If the Company does not make cash dividends it shall disclose the specific reasons and the next measures
Not applicable
to be taken to enhance the returns level of investors:
Whether minority shareholders have the opportunity to fully express their opinions and demands and
Yes
whether their legitimate rights and interests are fully protected:
Whether the conditions and procedures are compliant and transparent if the cash dividend policy is
Not applicable
adjusted or changed:
442024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Company is profitable during the reporting period and the profit available for distribution by the parent company is positive but no
cash dividend distribution plan is proposed
□ Applicable □Not applicable
Profit distribution and conversion of capital reserves into share capital during the reporting period
□Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 0.71
A total number of shares as the distribution basis(shares) 506521849
Cash dividend amount (yuan including tax 35963051.28
Other means (such as repurchase of shares) cash dividend
amount (yuan) 0.00
Total cash dividend (yuan including tax) 35963051.28
Distributable profit (yuan) 272608113.66
Proportion of cash dividend in the distributable profit 100%
Cash dividend distribution policy
When the company's development stage is in the growth period and there are major capital expenditure arrangements
when the profit distribution is carried out the proportion of cash dividends in this profit distribution should be at least
20%.
Detailed explanation of the profit distribution or capital reserve transfer plan
Based on the distributable profits in the consolidated statement with the total share capital of 506521849 shares as of
December 31 2024 as the base a cash dividend of RMB 0.71 (including tax) was distributed to every 10 shares of all
shareholders with a total cash dividend of RMB 35963051.28 (including tax).No bonus shares will be issued and no
capital reserve will be converted into share capital.If there is a change in the total share capital of the company before
the implementation of the distribution plan the total distribution amount shall be adjusted based on the total share
capital on the equity registration date when the distribution plan is implemented in the future and the above
distribution proportion shall be kept unchanged. The specific amount shall be subject to the actual distribution.XI. Implementation of the Company's equity incentive plan employee stock ownership plan or
other employee incentive measures
□Applicable □Not applicable
During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee incentive
measures and their implementation.XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
During the reporting period the Company has updated and improved the internal control system in a timely manner in accordance with
the provisions of the Basic Standard for Enterprise Internal Control and its supporting guidelines and established a set of internal control
system that is scientifically designed concisely applicable and effectively operated. The Audit Committee the Risk Control and
Compliance Department and the Audit Department jointly formed the Company's risk internal control management organization system
to supervise and evaluate the Company's internal control management. Through the operation analysis and evaluation of the internal
control system the Company has effectively prevented risks in operation and management and promoted the realization of internal
control objectives.According to the identification of major deficiencies in the Company's internal control over financial report there are no major
deficiencies in the internal control over financial report on the base date of the Evaluation Report on Internal Control. The Company has
maintained effective internal control over financial reports in all material respects in accordance with the requirements of the
standardized system of enterprise internal control and relevant regulations.According to the identification of major deficiencies in the Company's internal control over financial report the Company has not
identified any major deficiencies in the internal control over financial report on the base date of the Evaluation Report on Internal
Control.
452024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Details of major deficiencies in internal control found during the reporting period
□Yes □No
XIII. The Company's management and control over its subsidiaries during the reporting period
Problems
Consolidation Consolidation Progress of Follow-up
Company name encountered in Solutions taken
plan progress solution solution plan
consolidation
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Evaluation Report on Internal Control or Audit Report on Internal Control
1. Internal control evaluation report
Full-text disclosure date of the
Evaluation Report on Internal March 28 2025
Control
Full-text disclosure index of the
The Company's 2024 Internal Control Self-Evaluation Report on Cninfo
Evaluation Report on Internal
(http://www.cninfo.com.cn).Control
Ratio of total assets of units
included in the evaluation scope to
total assets in the consolidated 100.00%
financial statements of the
Company
Ratio of operating revenue of units
included in the evaluation scope to
the operating revenue of 100.00%
consolidated financial statements of
the Company
Defect identification criteria
Type Financial report Non-financial report
Under any of the following circumstances
it shall be deemed that the Company has
major deficiencies in internal control
Deficiencies related to financial reports are
unrelated to financial reports: (1) the
divided into minor deficiencies significant
operating activities of the Company
deficiencies and major deficiencies according
seriously violate national laws and
to their severity. Major deficiencies refer to a
regulations; (2) unscientific decision-
combination of one or more control
making procedures for "decision-making
deficiencies which may cause the enterprise
on major issues appointment and removal
to deviate seriously from the control
of important cadres arrangement of
objectives. Significant deficiencies refer to a
important projects and use of large sums
Qualitative criteria combination of one or more control
of money" resulting in major decision-
deficiencies the severity and economic
making errors and causing major property
consequences of which are lower than those
losses to the Company; (3) a large number
of major deficiencies but which may still
of key positions or technical talents are
cause the enterprise to deviate from the
lost; (4) failure of control system
control objectives. Minor deficiencies refer to
involving important business areas of the
other internal control deficiencies that do not
Company; (5) it has a serious negative
constitute major deficiencies or significant
impact on the Company's business and
deficiencies.the Company cannot eliminate such
impact; (6) the internal control evaluation
results are major deficiencies and have not
462024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
been effectively rectified. Significant
deficiencies: refer to a combination of one
or more control deficiencies the severity
and economic consequences of which are
lower than those of major deficiencies but
which may still cause the enterprise to
deviate from the control objectives. Minor
deficiencies: refer to other internal control
deficiencies that do not constitute major
deficiencies or significant deficiencies.The misstated amount of the financial
statements falls within the following range:
major deficiencies: misstated amount ≥ 1.5%
of the total revenue; misstated amount ≥ 10%
of total profit; misstated amount ≥ 5% of net
assets. Significant deficiencies: 0.5% of the
total revenue ≤ misstated amount < 1.5% of
the total revenue; 5% of the total profit ≤
Quantitative criteria Not applicable
misstated amount < 10% of the total profit;
3% of net assets ≤ misstated amount < 5% of
net assets. Minor deficiencies: 0% of the total
revenue < misstated amount < 0.5% of the
total revenue; 2% of the total profit <
misstated amount < 5% of the total profit; 0%
of net assets < misstated amount < 3% of net
assets.Number of major deficiencies in
0
financial reports
Number of major deficiencies in
0
non-financial report
Number of significant deficiencies
0
in financial report
Number of significant deficiencies
0
in non-financial report
2. Audit Report on Internal Control
□Applicable □Not applicable
Review opinion in the Audit Report on Internal Control
Shenzhen Textile has maintained in all material respects effective internal control over financial reports in accordance with the
Basic Standard for Enterprise Internal Control and relevant regulations as of December 31 2024.Disclosure of the Audit Report on Internal Control Disclosed
Full-text disclosure date of the Audit Report on Internal
March 28 2025
Control
Full-text disclosure index of the Audit Report on Internal
See Cninfo (http://www.cninfo.com.cn) for details
Control
Opinion type of the Audit Report on Internal Control Standard and unqualified opinion
Whether there are major deficiencies in non-financial reports No
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□Yes □No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the opinion of the self-evaluation report of
the Board of Directors
□Yes □No
472024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
XV. Status of rectification of self-examination issues of special actions on governance of listed
companies
During the reporting period no relevant governance issues of the Company have been found as listed in the Self-inspection Checklist for
Special Governance Activities of Listed Companies.
482024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section V Environment and Social Responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are among the key pollutant discharge entities announced by the environmental
protection department
□Yes □No
Environmental protection related policies and industry standards
I. SAPO Photoelectric:
(I) Name of executive standards for air pollutant emissions
1. Emission Standard for Boiler Air Pollutant DB44/765-2019;
2. Emission limits of air pollutants DB44/ 27-2001;
3. Implement the limits for electronic components in the electronic industry in Tianjin Volatile Organic Compound Emission Control
Standard for Industrial Enterprises (DB12/524-2020);
4. Emission Standard for Odor Pollutants GB 14554-93 Control Standard for Unorganized Emission of Volatile Organic Compounds
GB 37822-2019.(II) Name of executive standards for discharge of water pollutants
Guangdong Province Water Pollutant Discharge Limit Standard DB44/26-2001.II. MCENTURY
1. Regulations on environment protection of Guangdong Province;
2. Measures for Management of Ecological Environment Standards.
Environmental protection administrative licensing
I. SAPO Photoelectric
Application time of the existing pollutant discharge permit is: December 13 2022 and validity period is: from December 13 2022 to
December 12 2027.II. MCENTURY
The application period of the existing pollutant discharge permit is from August 10 2020 to August 9 2023 and the validity period after
application for renewal is from August 10 2023 to August 9 2028.Industrial emission standards and details of pollutant emissions involved in production and operating activities
Type of Name of
Name of main main Discharg Exceedi
Discharg
the pollutant pollutant Number Distribut e Approve ng
Discharg e Total
Compan s and s and of ion of standard d total discharg
e concentr discharg
y or particula particula discharg discharg s of discharg e
method ation/int e
subsidiar r r e outlets e outlets pollutant e standard
ensity
ies pollutant pollutant s applied s
s s
Shenzhe Waste Non- High Discharg <50mg/ 120mg/
5 21.9t/a 49.98t/a None
n SAPO gas methane altitude e outlets m3 m3
492024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Photoele hydrocar emission are set
ctric bons s on the
Co. Ltd. east side
of the
roof of
building
s 1 and 3
Open
Shenzhe
channel
n SAPO Southeas
Wastewa discharg <20mg/ 25.0536/
Photoele COD 1 t side of 40mg/L 3.9347/a None
ter e after L a
ctric the plant
treatmen
Co. Ltd.t
Permitte
d
discharg
e value:
COD
pH Discharg
ammoni
value: 6- e Limits
a
9; of Water
nitrogen
anilines: Pollutant
pH
1.0 s
value
Atmosp mg/L; DB44/2
suspende
here: suspende 6-2001;
d solids
disorgan d solids: Discharg
five-day
ized; 50 e
biochem
wastewa mg/L; Standard
ical
ter: 1. total of Water
oxygen
Intermitt nitrogen Pollutant
demand
ent (as N) s for
total
discharg 15 Danshui
phospho CODcr:
e the mg/L; River
rus (as 0.349 CODcr:
flow is ammoni and
P) t/a; 1.62 t/a;
unstable Longitud a Shima
color ammoni ammoni
and e: nitrogen: River
anilines a a
irregular 114°15′3 8 mg/L; Basin
MCENT Wastewa chlorine nitrogen: nitrogen:
during 1 1.36″ sulfide: DB44/2 None
URY ter dioxide 0.0102 0.216
discharg Latitude: 0.5 050-
sulfide t/a; total t/a; total
e but it 22°43′38 mg/L; 2017;
total nitrogen nitrogen
is not a .14″ chemical Discharg
nitrogen (as N) (as N)
shock oxygen e
(as N) 0.1305 0.405 t/a
discharg demand: Standard
ammoni t/a
e; 2. 60 of Water
a
intermitt mg/L; Pollutio
(ammoni
ent chlorine n for
a gas)
discharg dioxide: Textile
non-
e stable 0.5 Dyeing
methane
flow mg/L; and
total
during chroma: Finishin
hydrocar
discharg 50; five- g
bons
e day Industry
hydroge
biochem GB4287
n
ical -
sulfide
oxygen 2012GB
odor
demand: 4287-
concentr
202012
ation
mg/L;
total
phospho
rus (as
502024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
P) 0.5
mg/L.Treatment of pollutants
I. SAPO Photoelectric
SAPO Photoelectric adopts RTO waste gas thermal storage incineration treatment process for the organic waste gas produced by each
production line of which RTO+ catalyst treatment process is adopted for production line 7. The exhaust gas treatment equipment
operates stably with good exhaust gas treatment effect and the VOCs removal rate of organic exhaust gas reaches more than 99.9%
which can fully meet the requirements of exhaust gas emission; at the same time the equipment adopts imported heat storage materials
with a heat storage effect of 90% and low energy consumption for equipment operation; after RTO treatment the exhaust gas generated
in the production process can meet the emission standard after treatment and the VOCs concentration at the discharge port is all
controlled at <40 mg/m3.SAPO Photoelectric adopts the wastewater treatment process of Fenton + sedimentation + UASB anaerobic + aerobic + MBR membrane
for its phase I wastewater treatment facilities with strong impact load resistance of the process stable system operation low energy
consumption low maintenance and repair cost a high degree of automation and good effluent effect of wastewater treatment. The
wastewater treatment process of Fenton + sedimentation + UASB anaerobic + aerobic + MBR membrane + mc membrane treatment +
evaporation system is adopted for its phase II wastewater treatment facilities and all the wastewater is reused to the production line after
treatment. All the wastewater of SAPO Photoelectric can meet the environmental requirements of standard discharge after being treated
by the treatment facilities and the COD concentration of the total discharge outlet is <20 mg/L.II. MCENTURY
MCENTURY has built a set of dedicated wastewater treatment facilities and continuously optimized and improved the facilities and
processes during the actual operation process. The wastewater is professionally treated through multiple processes with better operation
effect and all pollutant indicators meet relevant standards and laws and regulations. In addition MCENTURY built the reclaimed water
recycling system in 2021 which can effectively save water consumption and reduce wastewater discharge after it is officially put into
operation.Environmental self-monitoring plan
I. SAPO Photoelectric
The monitoring shall be carried out according to the monitoring requirements issued by the monitoring station and the operation
requirements of each system of SAPO Photoelectric. The specific monitoring plan is as follows: organic waste gas 4 times/year (once a
quarter); wastewater discharge 12 times/year (once a month); boiler waste gas 2 times/year (once every six months) of which nitrogen
oxide 12 times/year (once a month); canteen fume 1 time/year; noise at the plant boundary 2 times/year (once every six months);
drinking water 1 time/year; waste gas at the plant boundary 1 time/year.II. MCENTURY
According to the environmental management requirements of the pollutant discharge permit the specific monitoring plan is as follows:
wastewater pH flow COD and ammonia nitrogen automatic detection; chromaticity suspended solids total nitrogen and 5-day
biochemical oxygen demand 1 time/day; total phosphorus 1 time/week; sulfide and aniline 1 time/month; chlorine dioxide 1
time/quarter; ammonia gas non-methane hydrocarbons sulfide and odor concentration at the plant boundary 1 time/half a year.Emergency plan for unexpected environmental events
I. SAPO Photoelectric
According to the actual situation of the Company complete the preparation of the emergency plan for environmental emergencies and
apply for the filing of the environmental emergency plan through relevant departments.II. MCENTURY
According to the actual situation of the Company complete the preparation of the emergency plan for environmental emergencies and
apply for the filing of the environmental emergency plan through relevant departments.Investment in environmental governance and protection and payment of environmental protection tax
I. SAPO Photoelectric
Investment in environmental governance and protection in 2024: RMB 9.257 million;
Payment of environmental protection tax in 2024: RMB 8217.78.II. MCENTURY
The investment in environmental governance and protection in 2024 was about RMB10000.Measures taken to reduce its carbon emissions during the reporting period and their effects
□Applicable □Not applicable
I. SAPO Photoelectric
1. Through refined management and technological innovation SAPO Photoelectric save in energy consumption cost for 2024 when the
output increased; through various initiatives such as independent maintenance and transformation hazardous waste reduction RTO
maintenance solid waste sales and iodine recycling SAPO Photoelectric cumulatively saved in cost which effectively reduced the
company's operating costs and provided strong support for the Company's sustainable development.
2. According to the production line shutdown and startup plan SAPO Photoelectric formulated the air-conditioning energy-saving
adjustment plan for the corresponding shutdown carried out the air-conditioning energy-saving adjustment after the production line was
connected and recorded the adjustment time every day and calculated the energy-saving benefits. The total electricity cost saved for
2024 was RMB 341000.
512024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. According to the provisions of the Environmental Protection Law enterprises and institutions are required to conduct environmental
credit evaluation once a year and conduct dynamic evaluation on a quarterly basis. SAPO Photoelectric has actively implemented the
government's requirements improved the environmental protection system database filling (environmental punishment system
emergency management system pollutant discharge permit management platform pollution source online monitoring platform solid
waste supervision platform etc.) provided various green factory promotion materials for the ecological environment bureau and at the
same time published the enterprise environmental credit commitment letter in the Special Zone Daily publicly. In May 2024 SAPO
Photoelectric was rated as an Environmental Protection Integrity Enterprise by Shenzhen Municipal Bureau of Ecology and Environment
and enjoyed the preferential treatment of charging at 90% of sewage treatment fee since July with a cumulative saving of RMB 81800
in sewage treatment fee from July to December 2024.II. MCENTURY
During the reporting period MCENTURY has strictly abided by laws and regulations strengthened the management of wastewater
treatment and ensured the effective operation of wastewater treatment facilities and there was no violation of laws and regulations
throughout the year.Administrative punishment due to environmental problems during the reporting period
Impact on
Name of the Corrective
Reason for production and
Company or Violations Punishment result measures of the
punishment operation of listed
subsidiaries Company
companies
None None None None None None
Other environmental information that should be disclosed
I. SAPO Photoelectric
1. Annual Report on Legal Disclosure of Corporate Environmental Information: https://www-app.gdeei.cn/stfw/index
2. Quarterly/Annual Implementation Report of Pollutant Discharge Permit: http://permit.mee.gov.cn/
II. MCENTURY
None
Other information related to environmental protection
None
II. Social responsibilities
(I) Protection of shareholders' equity
During the reporting period the Company has operated in compliance with laws and regulations and further standardized its operation
by continuously improving its governance structure in strict accordance with the requirements of laws and regulations such as the
Company Law the Securities Law and the Code of Corporate Governance for Listed Companies. The Company has adhered to taking
the deliberative system of the general meeting of shareholders the Board of Directors the Board of Supervisors and the independent
directors as the core further improved the corporate governance structure and various management systems continuously improved the
internal control system in the process of the Company's operation and management adopted effective preventive measures against
operational risks and effectively safeguarded and protected the shareholders' equity thus laying a solid foundation for the Company's
healthy and sustainable development. The independent directors have paid close attention to the operation of the Company put forward
many valuable professional suggestions for the daily operation and key issues of the Company and played an important role in
improving the supervision mechanism and safeguarding the legitimate rights and interests of the Company and all shareholders. The
Company has strictly performed its information disclosure obligations in accordance with the law disclosed information that has a
significant impact on investment decisions in a true accurate complete timely and fair manner adhered to concise and easy-to-
understand disclosure contents fully reveals risks and facilitates access by all shareholders and further sorted out and improved the
relevant systems to enhance the quality of information disclosure in accordance with regulatory requirements.During the reporting period the Company has further improved information disclosure and information transparency performed its
information disclosure obligations in strict accordance with regulatory requirements communicated and exchanged information with
investors through multiple channels answered questions raised by investors in a timely manner improved information transparency
cooperated with regulatory authorities safeguarded the rights and interests of the majority of the investors especially small and medium-
sized investors and achieved positive interaction and harmonious development between investors and listed companies.(II) Protection of employees' legitimate rights and interests
In 2024 according to the requirements of modern enterprise management the Company strengthened the scientific standardized and
professional management of human resources management through initiatives such as system construction and cultural construction
effectively improved the level of human resources management avoided the risks of labor and employment created a good corporate
culture atmosphere further mobilized the enthusiasm of employees and enhanced their sense of acquisition and sense of belonging.Firstly the human resources management system was further revised and improved according to the Company's development needs.During the year the Company newly revised the human resources management systems such as the Management Measures for Staff
Rank Promotion of Shenzhen Textile the Management Measures for Staff Exchange and Exercise of Shenzhen Textile and the
Management System for Employee Performance Assessment of Shenzhen Textile and optimized and improved the human resources
522024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
work such as talent rank promotion exchange and exercise and performance assessment management. Secondly the Company signed
labor contracts with new employees and conducted standardized management of employees in accordance with the Labor Law and
relevant management regulations of the Company. Thirdly the Company established a scientific appraisal and distribution system for
senior officers department managers and employees and set up a relatively systematic and standardized performance appraisal and
evaluation system which comprehensively objectively and fairly assesses and evaluates the performance of employees in performing
their duties and completing tasks and uses this as the basis for determining the remuneration rewards and punishments and
appointments of the employees. Fourthly the Company strengthened the construction of talent team thoroughly implemented the
strategy of "strengthening enterprises with talents" continuously carried out two-way communication and training activities for cadres
and talents of the Group and its affiliated enterprises better cared for and helped employees grow and become successful improved the
comprehensive business ability and duty performance ability of employees and stimulated the vitality of the cadre team. At the same
time the Company selected and recruited talents through marketization created a good environment for talent development and
continuously stimulated innovation vitality and power.(III) Environmental protection
The Company has always regarded building a modernized "green enterprise" as an important and long-term responsibility to be
undertaken insisted on creating the whole process of building a green cycle of the industrial chain realized a truly green circular
economy improved the quality of the surrounding environment of the Company and escorted the Company's production. During the
reporting period the off-site noise industrial wastewater and exhaust emissions during the production process of the Company have
been monitored by the environmental protection department and met the standard requirements of relevant laws and regulations and no
major environmental protection incidents have occurred. The Company has vigorously advocated green office carried out various forms
of environment protection publicity and education activities improved employees' awareness of energy conservation and emission
reduction realized the coordinated development of production and operation and environment protection and earnestly fulfilled its
social responsibility. During the reporting period the Company has actively responded to the national development goal of "carbon
peak" and "carbon neutrality" continuously improved environmental protection facilities optimized waste gas and wastewater treatment
processes strictly controlled the Company's waste gas and wastewater discharge ensured the efficient and stable operation of waste gas
and wastewater treatment facilities to effectively reduce the Company's carbon emissions thus contributing to the realization of the
national goal of "carbon peak" and "carbon neutrality".(IV) Protection of consumer rights and interests
The Company has always adhered to the core values of "integrity-based and responsibility first". Being responsible for customers is the
source of enterprise value. It is our unremitting pursuit to strive to provide customers with professional personalized and comprehensive
products and services. Focusing on customer needs continuously innovating customer service and continuously improving product
quality are the driving force for the Company to achieve good performance and sustainable development and also an important
guarantee for winning long-term trust of customers. The Company has taken the initiative to pay attention to customer needs responded
quickly to customer feedback sincerely thought about the interests of the customers and promoted the establishment of long-term
partnerships.III. Consolidation and expansion of the achievements of poverty alleviation and rural
revitalization
In 2024 the Company actively fulfilled its corporate social responsibility actively participated in consumption assistance work and
completed consumption assistance procurement of RMB 547600.
532024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VI Important Matters
I. Fulfillment of commitments
1. Commitments made by the Company's actual owner shareholders related parties acquirers the Company
and other related parties that have been fulfilled within the reporting period and those that have not been
fulfilled as of the end of the reporting period
□Applicable □Not applicable
Party
making Performan
Reason Type Content Date Term
commit ce
ment
Commitments made at the time of listing and
circulation of restricted shares in the share
reform: 1. if it plans to sell its shares held through
Shenzhe the securities trading system in the future and the
n reduction in the number of shares reaches 5%
Commitm Commitm
Investm within six months from the first reduction it will Continuou In normal
ents on ents on August 4
ent disclose the sales prompt announcement through sly performan
share share 2006
Holding the Company within two trading days before the effective ce
reform reduction
s Co. first reduction; 2. strictly abide by the relevant
Ltd. provisions of the Guidance Opinions of Listed
Companies on Lifting the Transfer of Restricted
Stocks and the relevant business rules of the
Shenzhen Stock Exchange.Commitments made at the time of private
offering in 2009: Shenzhen Investment Holdings
and its wholly-owned subsidiaries subsidiaries
held or other companies with actual right of
control will not engage in any business that are
the same or similar to those currently or in the
future engaged by Shenzhen Textile or conduct
any other business or activities that may directly
or indirectly compete with Shenzhen Textile; if
Shenzhen Investment Holdings and its wholly-
Commitm Shenzhe
Commitm owned subsidiaries subsidiaries held or other
ents made n
ents on companies with actual right of control over
at the Investm Continuou In normal
avoiding Shenzhen Investment Holdings engage in October 9
time of ent sly performan
horizontal horizontal competitions with Shenzhen Textile or 2009
IPO or Holding effective ce
competitio conflict with the interests of the issuer in the
refinancin s Co.ns future in terms of operating activities Shenzhen
g Ltd.Investment Holdings will procure the sale of the
equity interests assets or business of such
companies to Shenzhen Textile or a third party;
when Shenzhen Investment Holdings and its
wholly-owned subsidiaries subsidiaries held or
other companies with actual right of control and
Shenzhen Textile need to expand their business
during which there may be horizontal
competitions Shenzhen Textile has the right of
first refusal.Commitm Shenzhe Commitm Commitments made at the time of private Continuou In normalJuly 14
ents made n ents on offering in 2012: 1. Shenzhen Investment sly performan2012
at the Investm avoiding Holdings as the controlling shareholder of effective ce
542024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
time of ent horizontal Shenzhen Textile currently has no production
IPO or Holding competitio and operating activities that constitute horizontal
refinancin s Co. ns competitions with the existing business of
g Ltd. Shenzhen Textile and its subsidiaries held; 2.Shenzhen Investment Holdings and its
subsidiaries held or other companies with actual
right of control will not in the future directly or
indirectly or on behalf of any person company
or unit engage in the same or similar business as
Shenzhen Textile and its subsidiaries held in any
region in the form of holding equity
participation joint venture cooperation
partnership contracting leasing etc. and
undertake not to use the position as controlling
shareholder to damage the legitimate rights and
interests of Shenzhen Textile and other
shareholders or to seek additional benefits by
using the position as controlling shareholder; 3. if
Shenzhen Investment Holdings and its
subsidiaries held or other companies with actual
right of control engage in horizontal competitions
with Shenzhen Textile in the future in terms of
operating activities Shenzhen Investment
Holdings will urge the relevant companies to
avoid horizontal competitions by transferring
equity assets or business etc.; 4. the above
commitments shall remain valid and irrevocable
during the period when Shenzhen Investment
Holdings serves as the controlling shareholder of
Shenzhen Textile or indirectly controls Shenzhen
Textile.Whether the commitment is fulfilled on time Yes
If the commitments are not fulfilled within the time limit the specific reasons for the unfinished
Not applicable
performance and the next work plan shall be specified
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the profit
forecast period the Company shall explain that the assets or projects have met the original profit forecast and
the reasons
□Applicable □Not applicable
II. Non-operational occupation of funds by the controlling shareholders and other related
parties of the listed company
□Applicable □Not applicable
During the reporting period there were no non-operational funds occupied by the controlling shareholders and other related parties for
the listed company.III. Illegal external guarantees
□Applicable □Not applicable
The Company had no illegal external guarantee during the reporting period.
552024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
IV. Explanation of the Board of Directors on the latest "modified report"
□Applicable □Not applicable
V. Explanation of the Board of Directors the Board of Supervisors independent directors (if
any) on the "modified report" of the accounting firm during the reporting period
□Applicable □Not applicable
VI. Explanation of the accounting policies changes in accounting estimates or corrections of
significant accounting errors compared to the financial report of the previous year
□Applicable □Not applicable
During the reporting period the Company had no accounting policies changes in accounting estimates or corrections of significant
accounting errors.VII. Explanation of changes in the scope of consolidated statements compared to the financial
report of the previous year
□Applicable □Not applicable
There was no change in the scope of the consolidated statements of the Company during the reporting period.VIII. Appointment and dismissal of the accounting firm
Currently appointed accounting firm
Deloitte Touche Tohmatsu Certified Public Accountants
Name of domestic accounting firm
(LLP)
Remuneration of domestic accounting firm (RMB10000) 110
Number of consecutive years of audit services provided by
3
domestic accounting firm
Name of certified public accountants of the domestic accounting
Huang Tianyi Chen Junheng
firm
Number of consecutive years of audit services provided by
2
certified public accountants of domestic accounting firm
Name of overseas accounting firm (if any) None
Number of consecutive years of audit services provided by
None
overseas accounting firm (if any)
Name of certified public accountants of overseas accounting firm
None
(if any)
Number of consecutive years of audit services provided by
None
certified public accountants of overseas accounting firm (if any)
Whether to change the accounting firm in the current period
□Yes□No
Engagement of internal control audit accounting firm financial adviser or sponsor
□Applicable □Not applicable
The total audit fee for 2024 is RMB 1.1 million (including tax) of which the financial statements audit fee is RMB 850000 (including
tax) and the internal control audit fee is RMB 250000 (including tax).
562024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
IX. Delisting after the disclosure of the annual report
□Applicable □Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable □Not applicable
During the reporting period the Company had no bankruptcy restructuring related matters.XI. Significant litigation and arbitration
□Applicable □Not applicable
Whether Discl
Amount Results and Execution of Date
estimated Proceedings osur
Basic information of involved influence of litigation of
liabilities of litigation e
litigation (arbitration) (RMB100 litigation (arbitration) disclo
are (arbitration) inde
00) (arbitration) trial judgment sure
formed x
As of the end
During the reporting
of the
period the Company
reporting
and its subsidiaries As at the end of
period among
were involved in a total the reporting
the The concluded
of 15 other litigation period the
aforementione cases basically
and arbitration cases concluded cases
d 15 cases 3 supported the
that did not meet the were in the
cases were Company's claims
criteria for disclosure of 901.65 No process of /
concluded and had no
material litigation execution or
while 7 cases material adverse
mainly contract completed with
were impact on the
disputes and labor no material
withdrawn by Company.disputes of which 6 adverse impact on
the plaintiffs
were brought as the Company.and 5 cases
plaintiffs and 9 as
were not
defendants.concluded.XII. Punishment and rectification
□Applicable □Not applicable
There was no punishment or rectification during the reporting period.XIII. Integrity status of the Company and its controlling shareholders and actual owner
□Applicable □Not applicable
The Company its controlling shareholders and actual owners are in good standing in terms of their integrity and have not failed to
perform the effective judgments of the court or failed to pay the larger amount due etc.XIV. Major related party transactions
1. Related party transactions related to daily operations
□Applicable □Not applicable
During the reporting period the Company had no related party transactions related to daily operations.
572024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Related party transactions arising from the acquisition and sale of assets or equity
□Applicable □Not applicable
During the reporting period the Company had no related party transactions arising from the acquisition or sale of assets or equity.
3. Related party transactions arising from joint external investment
□Applicable □Not applicable
During the reporting period the Company had no related party transactions arising from joint external investment.
4. Related claims and debts
□Applicable □Not applicable
During the reporting period the Company had no related debt transactions.
5. Information on transactions with finance companies with related relationship
□Applicable □Not applicable
There was no deposit loan credit or other financial business between the Company and the finance companies with related relationship
and their related parties.
6. Transactions between the Company's holding finance companies and its related parties
□Applicable □Not applicable
There was no deposit loan credit or other financial business between the Company's holding finance companies and its related parties.
7. Other major related party transactions
□Applicable □Not applicable
The Company had no other major related party transactions during the reporting period.XV. Major contracts and their performance
1. Custody contracting and lease matters
(1) Custody
□Applicable □Not applicable
During the reporting period the Company had nothing under custody.
(2) Contracting
□Applicable □Not applicable
During the reporting period the Company had no contracting.
(3) Leases
□Applicable □Not applicable
During the reporting period the Company had no leases.
582024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Significant guarantees
□Applicable □Not applicable
Unit: RMB10000
External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries)
Disclosu
re date Whether
of Actual the
Name of Type of Counter Whether to
guarante Guarante Actual guarante Collatera Guarante performa
guaranto guarante guarante guarantee for
e limit e limit date e l (if any) e period nce is
r e e (if any) a related party
related amount complete
announc d
ements
Guarantees to subsidiaries by the Company
Disclosu
re date Whether
of Actual the
Name of Type of Counter Whether to
guarante Guarante Actual guarante Collatera Guarante performa
guaranto guarante guarante guarantee for
e limit e limit date e l (if any) e period nce is
r e e (if any) a related party
related amount complete
announc d
ements
From the
effective
date of
the
guarante
e
Shenzhe Joint and
agreeme
n SAPO Septemb several
March 12564.0 nt to the
Photoele 48000 er 8 liability No No
18 2020 5 expiratio
ctric 2020 guarante
n date of
Co. Ltd. e
the
actual
loan
performa
nce
period
Total actual amount
Total guarantee limit
of guarantee
to be approved to
incurred to
subsidiaries during 0 -23927.4
subsidiaries during
the reporting period
the reporting period
(B1)
(B2)
Total approved Total actual balance
guarantee limit to of guarantees to
subsidiaries at the 48000 subsidiaries at the 12564.05
end of the reporting end of the reporting
period (B3) period (B4)
Guarantees by subsidiaries to subsidiaries
Disclosu Whether
re date Actual theName of Type of Counter Whether to
of Guarante Actual guarante Collatera Guarante performaguaranto guarante guarante guarantee for
guarante e limit date e l (if any) e period nce isr e e (if any) a related party
e limit amount complete
related d
592024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
announc
ements
Total guarantees of the Company (i.e. the total of the top three items)
Total actual amount
Total guarantee limit
of guarantee
to be approved
0 incurred during the -23927.4
during the reporting
reporting period
period (A1+B1+C1)
(A2+B2+C2)
Total approved Total actual balance
guarantee limit at the of guarantees at the
4800012564.05
end of the reporting end of the reporting
period (A3+B3+C3) period (A4+B4+C4)
Total actual guarantees (i.e. A4+B4+C4) as a
4.26%
percentage of the Company's net assets
Including:
Balance of guarantees provided for
shareholders actual owner and their related 0
parties (D)
Balance of debt guarantees provided directly
or indirectly for the guaranteed object whose 0
asset-liability ratio exceeds 70% (E)
Amount of total guarantees exceeding 50%
0
of net assets (F)
Total amount of the above three guarantees
0
(D+E+F)
Explanation of the situation in which the
guarantee liability occurs or there is evidence
that it may bear joint and several repayment
None
liability during the reporting period in
respect of unexpired guarantee contracts (if
any)
Explanation of provision of guarantee to
external parties in violation of the prescribed None
procedures (if any)
Explanation of the specific situation of the guarantee by the adoption of composite method
3. Entrustment of others for cash asset management
(1) Entrusted wealth management
□Applicable □Not applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB10000
Sources of funds Delinquent uncollected
Amount of Delinquent
for entrusted Outstanding amount of financial
Specific type entrusted wealth uncollected
wealth balance assets with provision for
management amount
management impairment
Bank wealth
management Self-owned funds 95000 50215.56 0 0
products
Others Self-owned funds 64900 22926.43 0 0
Total 159900 73141.99 0 0
602024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Details of high-risk entrusted wealth management with significant single amount low safety and poor liquidity
□Applicable □Not applicable
Unit: RMB10000
Actu Over
Wheth
Actua al view
Dete er
Refe l reco Amo of
Type rmin there
Name renc profit very unt Whet matt
of atio Exp will be
of e or of of her to er
truste Sour Inve n ecte any
trustee annu loss profi prov go and
e Prod ce Expi stme met d entrust
instituti Am Start alize amou t or ision throu inde
institu uct of ry nt of hod earn ed
on (or ount date d nt loss for gh x of
tion type fund date fund of ings wealth
name rate durin durin impa legal relat
(or s s rem (if manag
of of g the g the irme proce ed
truste uner any) ement
trustee) retur report repor nt (if dures enqu
e) atio plan in
n ing ting any) iries
n the
period perio (if
future
d any)
Lum
Shanghai p
Pudong Self- sum
Febru Augu Not
Develop Finan 1500 owne Other paym 3.05 228.7 Undu
Bank ary 8 st 8 0 0 Yes applicab
ment cing 0 d s ent % 5 e
2024 2024 le
Bank funds upon
Co. Ltd. matur
ity
Lum
p
Rede
Struc Self- sum
Bank of Marc June mptio Not
tural 2000 owne Other paym 0.20
China Bank h 7 19 11.29 11.29 n on 0 Yes applicab
depos 0 d s ent %
Limited 2024 2024 matur le
its funds upon
ity
matur
ity
Lum
Shanghai p
Rede
Pudong Self- sum
Marc June mptio Not
Develop Finan 1000 owne Other paym 2.90
Bank h 12 19 79.47 74.97 n on 0 Yes applicab
ment cing 0 d s ent %
2024 2024 matur le
Bank funds upon
ity
Co. Ltd. matur
ity
Lum
p
Self- Nove sum
Bank of April Not
Finan 2500 owne mber Other paym 2.80 335.6 Undu
Jiangsu Bank 28 0 0 Yes applicab
cing 0 d 5 s ent % 2 e
Co. Ltd. 2025 le
funds 2024 upon
matur
ity
Lum
p
Self- Nove sum
Bank of May Not
Finan 2500 owne mber Other paym 2.80 350.9 Undu
Jiangsu Bank 8 0 0 Yes applicab
cing 0 d 7 s ent % 6 e
Co. Ltd. 2025 le
funds 2024 upon
matur
ity
Southern Fund Mone 5000 Self- Febru Marc Mone Rede 1.88 10.05 10.05 Rede 0 Yes Not
612024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Asset tary owne ary h 28 y mptio % mptio applicab
Manage fund d 23 2024 mark n on n on le
ment funds 2024 et T matur
Co. Ltd. instru day ity
ment arriva
s l on
T+1
Rede
Mone
mptio
Penghua y
Self- Febru Dece n on
Fund Mone mark Not
owne ary mber T 2.07 Undu
Manage Fund tary 6000 et 0 0 0 Yes applicab
d 23 31 day % e
ment fund instru le
funds 2024 2025 arriva
Co. Ltd. ment
l on
s
T+1
Rede
Mone
Hotland mptio
y
Innovati Self- Dece n on
Mone April mark Not
on Asset owne mber T 3.69 Undu
Fund tary 5000 3 et 0 0 0 Yes applicab
Manage d 31 day % e
fund 2024 instru le
ment funds 2025 arriva
ment
Co. Ltd. l on
s
T+1
Rede
Mone
mptio
Penghua y
Self- Dece n on
Fund Mone April mark Not
owne mber T 2.07 Undu
Manage Fund tary 9000 30 et 0 0 0 Yes applicab
d 31 day % e
ment fund 2024 instru le
funds 2025 arriva
Co. Ltd. ment
l on
s
T+1
Rede
Mone
mptio
Southern y
Self- Dece n on
Asset Mone May mark Not
owne mber T 2.01 Undu
Manage Fund tary 9900 8 et 0 0 0 Yes applicab
d 31 day % e
ment fund 2024 instru le
funds 2025 arriva
Co. Ltd. ment
l on
s
T+1
Rede
Mone
mptio
Southern y
Self- Dece n on
Asset Mone June mark Not
1000 owne mber T 1.97 Undu
Manage Fund tary 28 et 0 0 0 Yes applicab
0 d 31 day % e
ment fund 2024 instru le
funds 2025 arriva
Co. Ltd. ment
l on
s
T+1
Rede
Mone
mptio
Penghua y
Self- Dece n on
Fund Mone June mark Not
1000 owne mber T 2.07 Undu
Manage Fund tary 28 et 0 0 0 Yes applicab
0 d 31 day % e
ment fund 2024 instru le
funds 2025 arriva
Co. Ltd. ment
l on
s
T+1
Hotland Mone Rede
Self- Dece
Innovati Mone June y mptio Not
1000 owne mber 3.69 Undu
on Asset Fund tary 28 mark n on 0 0 0 Yes applicab
0 d 31 % e
Manage fund 2024 et T le
funds 2025
ment instru day
622024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Co. Ltd. ment arriva
s l on
T+1
15991379
Total -- -- -- -- -- -- 688.34 -- 0 -- -- --
00.42
Entrusted wealth management that may fail to recover the principal or other circumstances that may lead to impairment
□Applicable □Not applicable
(2) Entrusted loans
□Applicable □Not applicable
There were no entrusted loans of the Company during the reporting period.
4. Other major contracts
□Applicable □Not applicable
There were no other major contracts of the Company during the reporting period.XVI. Notes to other major matters
□Applicable □Not applicable
(1) Termination of the restructuring
In 2023 through the integration of high-quality resources in the polarizer industry the company optimized the industrial chain layout
and actively promoted the work relating to the acquisition of 100% equity in Hengmei Optoelectronics Co. Ltd. by way of issuance of
shares and payment of cash (hereinafter referred to as "the Restructuring" or "the Transaction"). During the period due to the changes in
shareholders and shareholding ratio of the target company Hengmei Optoelectronics during the restructuring period it is necessary to
adjust the counterparty of the restructuring and the transaction plan according to the relevant rules and requirements of the registration
system. On November 17 2023 the Company reconvened the Board of Directors to review and approve the revised draft of the
transaction plan and adjusted the pricing base date issue price counterparty etc. of the transaction plan. Since the disclosure of this
transaction plan the Company and relevant parties have actively promoted the various tasks involved in the Transaction including
additional audit evaluation and supplementary due diligence of the target company and communicated negotiated and prudently
demonstrated with the counterparty on the transaction plan. According to the relevant regulations the Company shall convene the Board
of Directors to review the draft of the restructuring report and issue a notice to convene the general meeting of shareholders before May
17 2024 and clarify whether to continue or terminate the Restructuring.
Since the planning and first announcement of the Transaction the Company has actively organized all parties involved in the
Transaction to promote the restructuring in strict accordance with the requirements of relevant laws regulations and normative
documents. As of May 16 2024 due to the complexity of the restructuring plan and the involvement of many counterparties the
transaction has not yet completed the approval procedures of all parties involved and the validity period of the financial data of the
target company has expired. The Company is unable to issue a notice of convening the general meeting of shareholders within six
months after the announcement of the first board resolution on the issuance of shares for the purchase of assets that is before May 17
2024. From the perspective of safeguarding the interests of all shareholders and the listed company the Company has decided to
terminate the Restructuring after prudent argumentation by the Company and friendly negotiation with all parties to the transaction.According to the agreements relating to the Transaction signed by the Company and the counterparties the agreements relating to the
Transaction shall only take effect after the transaction plan is reviewed and approved by the Board of Directors and the general meeting
of shareholders reviewed and approved by the Shenzhen Stock Exchange and registered and agreed to by China Securities Regulatory
Commission. In view of the fact that the above relevant preconditions have not been met the termination of the Restructuring is a
prudent decision made by the Company after full communication prudent analysis and friendly negotiation with relevant parties and the
Company and the parties to the transaction do not need to bear any liability for breach of contract or other liabilities. The Company's
current production and operation are normal. The termination of the Restructuring is not expected to have any material adverse impact
on the Company's existing daily operation and financial position and there is no harm to the interests of the Company and shareholders
especially minority shareholders. The Company will continue to pay attention to and actively explore investment opportunities in
polarizer and related fields to promote the long-term development of the Company and enhance its value. For details please refer to the
Announcement on Termination of Issuance of Shares and Payment of Cash for Purchase of Assets and Raising of Matching Funds and
Related Party Transactions (No. 2024-24) of the Company on Cninfo (http://www.cninfo.com.cn).
632024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Disposal of Assets by Shenzhen Xieli Joint Venture Company
Our company has invested with Hong Kong Xieli Maintenance Company (hereinafter referred to as "Hong Kong Xieli") to establish a
Sino foreign joint venture Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as "Shenzhen Xieli"). In March 2020
Shenzhen Xieli was deregistered by the Shenzhen Municipal Administration for Market Regulation. In July 2020 our company filed an
administrative action with the Yantian District People's Court in Shenzhen Guangdong Province to revoke the approval of the Shenzhen
Market Supervision Administration for the cancellation of Shenzhen Xieli.In December 2022 the People's Court of Yantian District Shenzhen Guangdong Province reviewed the first instance judgment and
revoked the administrative action approving the cancellation of Shenzhen Xieli's registration. In January 2023 the third party in the
original trial Hong Kong Xieli appealed to the Shenzhen Intermediate People's Court in Guangdong Province. Later due to Hong Kong
Xieli's failure to pay the case acceptance fee in advance the Shenzhen Intermediate People's Court issued an administrative ruling ruling
that the appeal should be withdrawn by Hong Kong Xieli. The retrial judgment of the first instance has taken effect on March 22 2023.At present Shenzhen Xieli has resumed its business registration status but its future direction still needs to be negotiated among all
shareholders.XVII. Major matters of the Company's subsidiaries
□Applicable □Not applicable
642024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: shares
Before the change Increase or decrease in this change (+ -) After the change
Convers
B
ion of
New on
provide Sub-
Number Ratio shares us Others Number Ratio
nt fund total
issued iss
into
ue
shares
I. Shares with restrictive
720000.01%0002100021000930000.02%
conditions for sales
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by the state-
00.00%0000000.00%
owned legal persons
3. Other domestic holdings 72000 0.01% 0 0 0 21000 21000 93000 0.02%
Including: shares held by
00.00%0000000.00%
domestic legal persons
Shares held by domestic
720000.01%0002100021000930000.02%
natural persons
4. Foreign shareholding 0 0.00% 0 0 0 0 0 0 0.00%
Including: shares held by
00.00%0000000.00%
overseas legal persons
Shares held by overseas
00.00%0000000.00%
natural persons
II. Shares without restrictive
50644984999.99%000-21000-2100050642884999.98%
conditions for sales
1. RMB ordinary shares 457021849 90.23% 0 0 0 -21000 -21000 457000849 90.22%
2. Foreign shares listed
494280009.76%00000494280009.76%
domestically
3. Foreign shares listed
00.00%0000000.00%
overseas
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00100.00
III. Total number of shares 506521849 0 0 0 0 0 506521849
%%
Reasons for changes in shares
□Applicable □Not applicable
1. Liu Honglei the former Deputy General Manager of the Company retired on May 31 2024 and the 750 tradable shares of the
Company held by him without restrictions on sales were converted into tradable shares with restrictions on sales. On November 30 2024
the restricted sales were lifted and converted into tradable shares without restrictions on sales.
2. Zhu Meizhu the former Director and General Manager of the Company retired on November 29 2024 and the 23250 tradable
shares of the Company held by him without restrictions on sales were converted into tradable shares with restrictions on sales. On May
31 2025 the restricted sales were lifted and converted into tradable shares without restrictions on sales.
Approval of changes in shares
652024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
□Applicable □Not applicable
Transfer of changes in shares
□Applicable □Not applicable
Effect of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the latest year and
the latest period and net assets per share attributable to the Company's ordinary shareholders
□Applicable □Not applicable
Other contents deemed necessary by the Company or required by the securities regulators to be disclosed
□Applicable □Not applicable
2. Changes in restricted shares
□Applicable □Not applicable
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the reporting period
□Applicable □Not applicable
2. Changes in the total number of shares and shareholder structure of the Company and changes in the
structure of assets and liabilities of the Company
□Applicable □Not applicable
3. Existing internal employee shares
□Applicable □Not applicable
III. Shareholders and actual owner
1. Number of the Company's shareholders and shareholding ratios
Unit: shares
Total
Total
number of
number of
preferred
ordinary
shareholder Total number of
shareholder
s with preferred shareholders
Total number of s at the end
restoration whose voting right have
ordinary of the
of voting been restored at the end
shareholders at the 33622 previous 32264 0 0
rights at of the previous month
end of the reporting month
the end of before the disclosure
period. before the
the date of the annual report
disclosure
reporting (if any) (see Note 8)
date of the
period (if
annual
any) (see
report
Note 8)
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing)
Number of Number of Number of Pledge marking or
Name of Nature of Shareholdi Changesshares held at shares shares held freezing
shareholder shareholder ng ratio during thethe end of the held under without
reporting
reporting restricted restrictions Share Number
662024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
period period conditions on sales status
Shenzhen Not
State-owned
Investment 46.21% 234069436 0 0 234069436 applicabl 0
legal person
Holdings Co. Ltd. e
Shenzhen Shenchao
Not
Technology State-owned
3.18% 16129032 0 0 16129032 applicabl 0
Investment Co. legal person
e
Ltd.Domestic Not
Sun Huiming natural 1.60% 8088853 1689200 0 8088853 applicabl 0
person e
Domestic
Su Weipeng natural 0.71% 3580000 0 0 3580000 Pledged 3000000
person
Domestic Not
Chen Xiaobao natural 0.66% 3328620 326236 0 3328620 applicabl 0
person e
Domestic Not
Li Zengmao natural 0.61% 3077997 246600 0 3077997 applicabl 0
person e
Hong Kong
Not
Securities Clearing Overseas
0.50% 2507982 664379 0 2507982 applicabl 0
Company Ltd. legal person
e
(HKSCC)
Shanghai
Submartingale
Domestic
Asset Management Not
non-state-
Co. Ltd. - 0.43% 2154800 2154800 0 2154800 applicabl 0
owned legal
Submartingale e
person
Value No. 1 Private
Fund
Domestic Not
Sun Wenbo natural 0.39% 2000200 854500 0 2000200 applicabl 0
person e
Shanghai
Submartingale
Asset Management Domestic
Not
Co. Ltd. - non-state-
0.39% 1991700 1991700 0 1991700 applicabl 0
Submartingale owned legal
e
Pingchangxin person
Yuanwang Private
Fund
Strategic investors or general legal
person becoming the top 10
None
shareholders due to placement of
new shares (if any) (see Note 3)
Among the top 10 ordinary shareholders Shenzhen Investment Holdings Co. Ltd. and Shenzhen
Shenchao Technology Investment Co. Ltd. do not constitute a relationship of persons acting in
Notes to shareholders' related
concert. In addition the Company does not know whether there is a related relationship between the
relationship or persons acting in
top 10 ordinary shareholders and between the top 10 ordinary shareholders and the top 10
concert
shareholders nor does it know whether they are persons acting in concert as stipulated in the
Administrative Measures for the Acquisition of Listed Companies.Explanation of the above
shareholders' involvement in
None
entrusting/being entrusted voting
rights and waiver of voting rights
Special explanation for the existence
of repurchase accounts among the None
top 10 shareholders (if any) (see
672024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Note 10)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and shares locked by senior
management)
Number of shares held without Type of shares
Name of shareholder restrictions on sales at the end of the
reporting period Type of shares Number
RMB ordinary
Shenzhen Investment Holdings Co. Ltd. 234069436 234069436
shares
RMB ordinary
Shenzhen Shenchao Technology Investment Co. Ltd. 16129032 16129032
shares
Domestically listed
Sun Huiming 8088853 8088853
foreign shares
RMB ordinary
Su Weipeng 3580000 3580000
shares
RMB ordinary
Chen Xiaobao 3328620 3328620
shares
RMB ordinary
Li Zengmao 3077997 3077997
shares
RMB ordinary
Hong Kong Securities Clearing Company Ltd. (HKSCC) 2507982 2507982
shares
Shanghai Submartingale Asset Management Co. Ltd. - RMB ordinary
21548002154800
Submartingale Value No. 1 Private Fund shares
RMB ordinary
Sun Wenbo 2000200 2000200
shares
Shanghai Submartingale Asset Management Co. Ltd. - RMB ordinary
19917001991700
Submartingale Pingchangxin Yuanwang Private Fund shares
Explanation of related relationship
Among the top 10 ordinary shareholders Shenzhen Investment Holdings Co. Ltd. and Shenzhen
or concerted actions among the top
Shenchao Technology Investment Co. Ltd. do not constitute a relationship of persons acting in
10 shareholders with unrestricted
concert. In addition the Company does not know whether there is a related relationship between the
tradable shares and between the top
top 10 ordinary shareholders and between the top 10 ordinary shareholders and the top 10
10 shareholders with unrestricted
shareholders nor does it know whether they are persons acting in concert as stipulated in the
tradable shares and the top 10
Administrative Measures for the Acquisition of Listed Companies.shareholders
Explanation of the top 10 ordinary
shareholders' participation in margin
None
financing and securities lending
business (if any) (see Note 4)
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
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without restrictive condition for sales conduct
any agreed repurchase transactions during the reporting period
□Yes□No
The Company's top 10 ordinary shareholders and top 10 ordinary shareholders without restrictive condition for sales did not conduct
any agreed repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Name of controlling Legal Date of Organization Main business
682024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
shareholder representative/pe establishment code
rson in charge
General business items are: investment and merger
and acquisition of financial and quasi-financial
equity such as banking securities insurance funds
and guarantee; engage in real estate development
and operation business within the scope of legally
obtaining land use right; carry out investment and
services in the field of strategic emerging
Shenzhen Investment October 13 industries; invest operate and manage the state-
He Jianfeng 76756642-1
Holdings Co. Ltd. 2004 owned equity of wholly-owned holding and
participating enterprises through restructuring and
integration capital operation asset disposal etc;
other business authorized by the Municipal State-
owned Assets Supervision and Administration
Commission (if the above business scope needs to
be approved according to national regulations it
can be operated only after approval is obtained).SZPRD A (000011) holds 301.41 million shares with a shareholding ratio of 50.57%; Shenzhen Special
Economic Zone Real Estate & Properties (000029) holds 564.3538 million shares with a shareholding ratio
of 55.78%; Shenzhen Universe (Group) (000023) holds 8.21 million shares with a shareholding ratio of
5.91%; Ping An Insurance (601318) holds 962.72 million shares with a shareholding ratio of 5.29%; Guosen
Securities (002736) holds 3223.11 million shares with a shareholding ratio of 33.53%; Guotai Junan
Securities (601211) holds 609.43 million A-shares and 103.37 million H-shares with a shareholding ratio of
8.00%; Telling Telecommunication Holding (000829) holds 195.03 million shares with a shareholding ratio
of 19.03%; Shenzhen International (00152) holds 1059.08 million shares with a shareholding ratio of
Equities of other
43.96%; Leaguer (002243) holds 606.66 million shares with a shareholding ratio of 50.11%; Infinova
domestic and overseas
(002528) holds 315.83 million shares with a shareholding ratio of 26.35%; Eternal Asia (002183) holds
listed companies
601.67 million shares with a shareholding ratio of 23.17%; Shenzhen Water Planning and Design Institute
controlled and invested
(301038) holds 64.35 million shares with a shareholding ratio of 37.50%; Shenzhen Energy (000027) holds
by the controlling
6.77 million shares with a shareholding ratio of 0.14%; Bank of Communications (601328) holds 9.52
shareholder during the
million shares with a shareholding ratio of 0.01%; CECEP Techand Ecology&Environment (300197) holds
reporting period
113.98 million share with a shareholding ratio of 3.66%; China Vanke (02202) holds 77.27 million shares
with a shareholding ratio of 0.66%; Shenzhen SEG (000058) holds 696.16mn shares with a shareholding
ratio of 56.54%; Shenzhen SDG Information (000070) holds 325.72 million shares with a shareholding ratio
of 36.18%; Shenzhen Tellus Holding (000025) holds 211.59 million shares with a shareholding ratio of
49.09%; Shenzhen SDG Service (300917) holds 80.74mn shares with a shareholding ratio of 47.78%;
Microgate Technology (300319) holds 72 million shares with a shareholding ratio of 8.28%; China
Merchants Shekou Industrial Zone Holdings (001979) holds 456.12 million shares with a shareholding ratio
of 5.03%.Changes in controlling shareholders during the reporting period
□Applicable □Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
3. The Company's actual owner and its persons acting in concert
Nature of actual owner: local state-owned assets management agency
Type of actual owner: legal person
Legal
Name of actual owner representative/person Date of establishment Organization code Main business
in charge
State-owned Assets Perform the duties of the
Supervision and contributor on behalf of the
Administration state and supervise and
Yang Jun July 30 2004 K3172806-7
Commission of manage state-owned assets
Shenzhen Municipal authorized for supervision in
People's Government accordance with the law.
692024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Equity of other
domestic and overseas
listed companies Directly holds 40.10% equity in Shenzhen Gas (601139); directly hold 21.93% equity in Shenzhen Zhenye
controlled by the actual (000006); directly holds 43.91% equity in Shenzhen Energy (000027).owner during the
reporting period
Changes in actual owner during the reporting period
□Applicable□Not applicable
There was no change in the actual owner of the Company during the reporting period.Chart for the property and controlling relationships between the Company and the actual owner
State-owned Assets Supervision and Administration Commission
of Shenzhen Municipal People's Government
Shenzhen Investment Holdings Co. Ltd. Shenzhen Major Industry Investment Group Co. Ltd.Shenzhen Shenchao Technology Investment Co. Ltd.Shenzhen Textile (Holdings) Co. Ltd.The actual owner controls the Company by way of trust or other asset management methods
□Applicable □Not applicable
4. The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
Company and their persons acting in concert accounted for 80% of the number of shares held by them
□Applicable □Not applicable
5. Other institutional shareholders holding more than 10% of the shares
□Applicable □Not applicable
6. Restricted share reduction of controlling shareholder actual owner reorganization parties and other
committed entities
□Applicable □Not applicable
IV. Specific implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□Applicable □Not applicable
Implementation progress of reducing repurchase shares by means of centralized bidding transaction
□Applicable □Not applicable
702024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VIII Preferred shares
□Applicable □Not applicable
During the reporting period the Company had no preferred shares.Section IX Bonds
□Applicable □Not applicable
712024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section X Financial Reports
Type of audit opinion Standard and unqualified opinion
Signing date of the audit report March 26 2025
Name of audit institution Deloitte Touche Tohmatsu Certified Public Accountants (LLP)
Audit report No. DSB (S) Z (25) No. P03605
Name of certified public accountant Huang Tianyi Chen Junheng
See the attached financial statements and notes for details.Chairman: Yin Kefei
Date of approval by the Board of Directors for filing: March 26 2025
72Shenzhen Textile (Holdings) Co. Ltd.
Financial Statements and Audit Report
For Year Ended December 31 2024Shenzhen Textile (Holdings) Co. Ltd.Financial Statements and Audit Report
For Year Ended December 31 2024
Content Page
Audit Report 1-4
Consolidated and parent company's balance sheet 5-7
Consolidated and parent company's income statement 8-9
Consolidated and parent company's statement of cash flows 10-11
Consolidated and parent company's statement of changes in shareholders' equity 12-15
Notes to the financial statements 16-102Shenzhen Textile (Holdings) Co. Ltd.Audit Report
DSB (S) Z (25) No. P03605
(Page 1 of 4)
All shareholders of Shenzhen Textile (Holdings) Co. Ltd.I. Audit opinions
We have audited the financial statements of Shenzhen Textile (Holdings) Co. Ltd. (hereinafter referred to as the
"Shenzhen Textile") including the consolidated and parent company's balance sheet as at December 31 2024 the
consolidated and parent company's income statement consolidated and parent company's statement of cash flows
consolidated and parent company's statement of changes in shareholders' equity and related notes to the financial
statements for the year then ended.In our opinion the attached financial statements are prepared in all material respects in accordance with the
Accounting Standards for Business Enterprises and fairly present the consolidated and the parent company's
financial position of Shenzhen Textile as at December 31 2024 and the consolidated and the parent company's
operating results and cash flows for the year then ended.II. Basis for the audit opinion
We have conducted our audit in accordance with the Chinese Auditing Standards for Certified Public Accountants.Our responsibilities under these standards are further described in the "Certified Public Accountant's Responsibilities
for the Audit of Financial Statements" section of the audit report. In accordance with the Code of Ethics for Chinese
Certified Public Accountants we are independent of Shenzhen Textile and have fulfilled other ethical responsibilities.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgment are of most significance in our audit of the
financial statements of the current year. These matters are addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.We have identified the following matters as key audit matters to be communicated in the audit report.
1. Recognition of revenue from sales of polarizers
As described in the Note (V). 41 to the financial statements in 2024 the operating revenue of Shenzhen Textile as
presented in the consolidated financial statements was RMB 3335283008.68 of which the revenue from sales of
polarizers was RMB 3161332478.08 accounting for 94.78% of the total revenue. The revenue from sales of
polarizers of Shenzhen Textile is recognized when the customer obtains control of the relevant goods. Due to the
importance of revenue from sales of polarizers to the consolidated financial statements as a whole and the fact that
the revenue is one of the key performance indicators of Shenzhen Textile there is an inherent risk that management
may manipulate the revenue recognition in order to achieve specific goals or expectations. Therefore we have
identified the recognition of revenue from sales of polarizers as a key audit matter in the audit of the consolidated
financial statements.- 1 -Shenzhen Textile (Holdings) Co. Ltd.Audit Report - Continued
DSB (S) Z (25) No. P03605
(Page 2 of 4)
III. Key audit matters - continued
1. Recognition of revenue from sales of polarizers - continued
In response to the above key audit matters the audit procedures we performed mainly include:
Test and evaluate the effectiveness of the operation of internal control related to the sales business of polarizer;
Check the sales contracts signed with major customers identify the terms and conditions of the contracts related to
the transfer of right of control of the goods and evaluate whether the accounting policies for recognition of revenue
from sales of polarizers meet the requirements of the Accounting Standards for Business Enterprises;
Execute analytical procedures for the revenue from sales of polarizers by production line product type and
customer respectively and analyze the rationality of the change in revenue from sales of polarizers in combination with
market selling price and other factors;
Extract samples to perform detail tests on the revenue from sales of polarizers check the supporting documents
such as invoices delivery orders and receipts related to the recognition of revenue from sales of polarizers and conduct
letter of confirmation on the sales amount of major customers to verify the authenticity of revenue from sales of
polarizers;
Select samples for sales transactions before and after the balance sheet date check supporting documents such as
delivery orders receipts and invoices and evaluate whether the revenue from sales of polarizers is recorded in the
appropriate accounting period.
2. Impairment of polarizer inventories
As described in Note (V). 8 to the Financial Statements as of December 31 2024 the book balance of inventories of
Shenzhen Textile as presented in the consolidated financial statements was RMB 911706239.87 of which the book
balance of polarizer inventories was RMB 905482857.11 accounting for 99.32% of the total inventories and the
corresponding provision for inventory depreciation of polarizer was RMB 115967084.94. According to the accounting
policies of Shenzhen Textile the inventories are measured at the lower of cost or net realizable value at the end of the
year. When the net realizable value of the inventories is lower than the cost the provision for inventory depreciation
shall be made according to the difference. Since the provision for inventory depreciation involves significant estimates
of the management we have identified the impairment of polarizer inventories as a key audit matter in the audit of the
consolidated financial statements.In response to the above key audit matters the audit procedures we performed mainly include:
Test and evaluate the effectiveness of internal control related to the impairment of polarizer inventories;
Evaluate the appropriateness of accounting policies related to the impairment of polarizer inventories;
Implement the on-site monitoring procedures of polarizer inventories check the inventory quantity of polarizer
inventories and observe the status of polarizer inventories on the basis of sampling;
Select samples compare the data used in determining the net realizable value of the polarizer inventories with the
actual cost of completion of products in progress and the actual selling prices incurred recently and evaluate the
reasonableness of the net realizable value of polarizer inventories.- 2 -Audit Report - Continued
DSB (S) Z (25) No. P03605
(Page 3 of 4)
IV. Other information
The management of Shenzhen Textile is responsible for other information. Other information includes information
covered in the 2024 Annual Report of Shenzhen Textile but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.In connection with our audit of financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with financial statements or our knowledge obtained
during the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other information we
are required to report that fact. We have nothing to report in this regard.IV. Responsibilities of the management and those charged with governance for financial statements
The management of Shenzhen Textile is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for designing
implementing and maintaining internal control that is necessary to ensure that the financial statements are free from
material misstatements whether due to frauds or errors.In preparing the financial statements the management is responsible for assessing the going-concern ability of Shenzhen
Textile disclosing matters related to going concern (if applicable) and applying the going concern basis unless the
management plans to liquidate Shenzhen Textile terminate its operations or has no other realistic alternative.Those charged with governance are responsible for overseeing the financial reporting process of Shenzhen Textile.VI. Responsibilities of certified public accountants for the audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an audit report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the audit
standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in aggregate they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.We have exercised professional judgment and maintained professional skepticism in performing our audit under the
auditing standards. At the same time we also implement the following work:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error
design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.- 3 -Audit Report - Continued
DSB (S) Z (25) No. P03605
(Page 4 of 4)
VI. Responsibilities of certified public accountants for the audit of financial statements - continued
(2) Understand the internal control related to the audit so as to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
(4) Draw conclusions on the appropriateness of the management's use of the going concern basis. At the same time
based on the audit evidence obtained a conclusion is drawn as to whether there is a material uncertainty in events or
circumstances that may give rise to significant doubt about the going-concern ability of Shenzhen Textile. If we
conclude that a material uncertainty exists we are required to in our audit report draw attention of the users of
statements to the related disclosures in the financial statements; if such disclosures are inadequate we should modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However future
events or circumstances may cause Shenzhen Textile to cease to continue as a going concern.
(5) Evaluate the overall presentation (including disclosures) structure and content of the financial statements and
whether the financial statements fairly reflect the relevant transactions and matters.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business
activities within Shenzhen Textile to express an opinion on the financial statements. We are responsible for the direction
supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit significant
audit findings and other matters including any significant deficiencies in internal control that we identify during our
audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and the related safeguards (if applicable).From the matters communicated with those charged with governance we have determined which matters are of most
significance to the audit of the financial statements in the current year and thus constitute the key audit matters. We
describe these matters in the audit report unless laws and regulations prohibit public disclosure of these matters or in
extremely rare circumstances if it is reasonably expected that the negative consequences of communicating a matter
outweigh the benefits to the public interest in the audit report we determine not to do so.Deloitte Touche Tohmatsu Certified Public Accountants LLP Certified Public Accountant of China
(Engagement partner)
Shanghai China
Certified Public Accountant of China
March 26 2025
- 4 -Shenzhen Textile (Holdings) Co. Ltd.Consolidated Balance Sheet
December 31 2024
Consolidated Balance Sheet
RMB
Balance as at the Balance as at the
Notes end of the current end of the previous
year year
Current assets:
Monetary funds (V). 1 340961443.82 472274448.00
Financial assets held for trading (V). 2 731419904.42 821946114.68
Notes receivable (V). 3 47305221.88 50963943.01
Accounts receivable (V). 4 863731936.89 820134833.95
Receivables financing (V). 5 6804603.68 22839459.13
Advances to suppliers (V). 6 8176724.70 19499886.80
Other receivables (V). 7 3596543.96 3220285.42
Including: interest receivable - -
Dividends receivable - -
Inventories (V). 8 789756700.88 736392172.27
Other current assets (V). 9 21461736.14 60773457.39
Total current assets 2813214816.37 3008044600.65
Non-current assets:
Long-term equity investments (V). 10 114828026.04 127682020.70
Other equity instrument investments (V). 11 165402900.00 145988900.00
Investment properties (V). 12 115993390.19 125603207.18
Fixed assets (V). 13 1873552843.91 2066006237.73
Construction in progress (V). 14 5814012.03 31307060.74
Right-of-use assets (V). 15 15338117.86 11999466.57
Intangible assets (V). 16 35207791.95 39564422.80
Goodwill (V). 17 - -
Long-term deferred expenses (V). 18 6084115.87 3503660.94
Deferred tax assets (V). 19 58920511.20 60605365.42
Other non-current assets (V). 20 27793871.91 29517420.71
Total non-current assets 2418935580.96 2641777762.79
Total assets 5232150397.33 5649822363.44
- 5 -Shenzhen Textile (Holdings) Co. Ltd.Consolidated Balance Sheet - Continued
December 31 2024
Consolidated Balance Sheet - Continued
RMB
Balance as at the Balance as at the
Notes end of the current end of the previous
year year
Current liabilities:
Short-term borrowings (V). 22 - 8000000.00
Derivative financial liabilities (V). 23 1278559.35 -
Notes payable (V). 24 31095540.29 31049291.49
Accounts payable (V). 25 304812580.55 408548136.24
Advances from customers (V). 26 1051491.96 1450096.30
Contract liabilities (V). 27 490562.97 1436943.34
Employee compensation payable (V). 28 56685289.92 56437162.09
Taxes payable (V). 29 6853730.84 4340895.14
Other payables (V). 30 160296989.98 184528344.55
Including: interest payable - -
Dividends payable - -
Non-current liabilities maturing within one year (V). 31 63347555.03 108102752.99
Other current liabilities (V). 32 54072022.27 80082477.22
Total current liabilities 679984323.16 883976099.36
Non-current liabilities:
Long-term borrowings (V). 33 162388870.00 505578314.56
Lease liabilities (V). 34 9496564.12 6687317.22
Deferred income (V). 35 96349196.26 97485986.89
Deferred tax liabilities (V). 19 48610809.66 44177287.45
Total non-current liabilities 316845440.04 653928906.12
Total liabilities 996829763.20 1537905005.48
Shareholders' equity:
Equity (V). 36 506521849.00 506521849.00
Capital reserve (V). 37 1961599824.63 1961599824.63
Other comprehensive income (V). 38 106877807.32 93607380.81
Surplus reserves (V). 39 104262315.64 104262315.64
Undistributed profits (V). 40 272608113.66 216160896.14
Total equity attributable to shareholders of the parent
company 2951869910.25 2882152266.22
Minority interests 1283450723.88 1229765091.74
Total shareholders' equity 4235320634.13 4111917357.96
Total liabilities and shareholders' equity 5232150397.33 5649822363.44
The notes are an integral part of the financial statements
_________________________________________________________________
Principal Chief Finance Officer Chief Accountant
- 6 -Shenzhen Textile (Holdings) Co. Ltd.Balance Sheet of the Parent Company
December 31 2024
Balance Sheet of the Parent Company
RMB
Balance as at the Balance as at the
Notes end of the current end of the previous
year year
Current assets:
Monetary funds 13630974.26 9125800.27
Financial assets held for trading 731419904.42 741243309.42
Accounts receivable (XVI). 1 13028987.63 12671623.65
Advances to suppliers 99904.79 -
Other receivables (XVI). 2 1534395.80 14013552.95
Including: interest receivable - -
Dividends receivable - -
Inventories 39835.05 32814.05
Total current assets 759754001.95 777087100.34
Non-current assets:
Long-term equity investments (XVI). 3 2040690006.71 2087532810.79
Other equity instrument investments 152221200.00 131185500.00
Investment properties 94773462.23 102430682.27
Fixed assets 2099585.67 2522229.44
Intangible assets 83350.98 191875.56
Long-term deferred expenses 4448190.05 -
Other non-current assets 25860862.33 27823005.45
Total non-current assets 2320176657.97 2351686103.51
Total assets 3079930659.92 3128773203.85
Current liabilities:
Accounts payable 411743.57 411743.57
Advances from customers 540673.07 540673.07
Employee compensation payable 17955509.70 15810919.71
Taxes payable 5619509.34 3115369.56
Other payables 87029351.12 106722393.87
Including: interest payable - -
Dividends payable - -
Total current liabilities 111556786.80 126601099.78
Non-current liabilities:
Deferred income 100000.00 200000.00
Deferred tax liabilities 34086313.51 40855186.12
Total non-current liabilities 34186313.51 41055186.12
Total liabilities 145743100.31 167656285.90
Shareholders' equity:
Equity 506521849.00 506521849.00
Capital reserve 1577392975.96 1577392975.96
Other comprehensive income 98116532.32 83629830.81
Surplus reserves 104262315.64 104262315.64
Undistributed profits 647893886.69 689309946.54
Total shareholders' equity 2934187559.61 2961116917.95
Total liabilities and shareholders' equity 3079930659.92 3128773203.85
The notes are an integral part of the financial statements
- 7 -Shenzhen Textile (Holdings) Co. Ltd.Consolidated Income Statement
For Year Ended December 31 2024
Consolidated Income Statement
RMB
Notes Amount for the current Amount for the previousyear year
I. Operating revenue (V). 41 3335283008.68 3079678375.45
Less: operating costs (V). 41 2795859934.82 2561631844.53
Taxes and surcharges (V). 42 10235505.65 9293623.13
Selling and distribution expenses (V). 43 42260603.47 34195670.61
G&A expenses (V). 44 134347821.58 134371410.53
R&D expenses (V). 45 103811822.91 104653040.92
Financial expenses (V). 46 12121156.05 24399501.16
Including: interest expenses 17858022.73 27339804.17
Interest income 7272362.76 12947471.64
Plus: other income (V). 47 41484107.53 50740363.91
Investment (loss) income (V). 48 (165313.89) 10828635.56
Including: investment losses in associates and joint ventures (10701895.08) (6898983.89)
Gains from derecognition of financial assets measured at
amortized costs - -
Gains from changes in fair value (V). 49 1134503.45 2151780.82
Credit loss gains (V). 50 5100446.66 4535775.14
Asset impairment loss (V). 51 (132423108.75) (126089709.42)
Gains from disposal of assets - 1.72
II. Operating profit 151776799.20 153300132.30
Plus: non-operating revenue (V). 52 1805086.92 1449879.26
Less: non-operating expenses (V). 53 698017.71 8205801.51
III. Total profit 152883868.41 146544210.05
Less: income tax expenses (V). 54 9827102.03 19407731.47
IV. Net profit 143056766.38 127136478.58
(I) Classified by operating sustainability:
1. Net profit from continuing operations 143056766.38 127136478.58
2. Net profit from discontinued operations - -
(II) Classified by ownership:
1. Net profit attributable to shareholders of the parent company 89371134.24 79268250.45
2. Minority interests 53685632.14 47868228.13
V. Net of tax of other comprehensive income (V). 38 13270426.51 (15870135.10)
Net of tax of other comprehensive income attributable to shareholders
of the parent company 13270426.51 (15989228.50)
(I) Other comprehensive income that cannot be reclassified into profit
or loss 14560500.00 (16267037.45)
1. Changes in re-measurement of defined benefit plans - -
2. Other comprehensive income that cannot be transferred to
profit or loss under the equity method - -
3. Changes in fair value of other equity instrument investments 14560500.00 (16267037.45)
4. Changes in fair value of the enterprise's own credit risk - -
(II) Other comprehensive income that will be reclassified into profit
or loss (1290073.49) 277808.95
1. Other comprehensive income that can be transferred to profit
or loss under the equity method - -
2. Changes in fair value of other debt investments - 178640.10
3. Amount of financial assets reclassified and included in other
comprehensive income - -
4. Provision for credit impairment of other debt investments - -
5. Reserves of cash flow hedges (effective portion of cash flow
hedging profit or loss) - -
6. Differences arising from translation of foreign-currency
financial statements (1290073.49) 99168.85
7. Others - -
Net of tax of other comprehensive income attributable to minority
shareholders - 119093.40
VI. Total comprehensive income 156327192.89 111266343.48
Total comprehensive income attributable to shareholders of the parent
company 102641560.75 63279021.95
Total comprehensive income attributable to minority shareholders 53685632.14 47987321.53
VII. Earnings per share
Basic earnings per share (RMB/share) 0.18 0.16
Dilute earnings per share (RMB/share) 0.18 0.16
The notes are an integral part of the financial statements
- 8 -Shenzhen Textile (Holdings) Co. Ltd.Income Statement of the Parent Company
For Year Ended December 31 2024
Income Statement of the Parent Company
RMB
Notes Amount for the current Amount for the previousyear year
I. Operating revenue (XVI). 4 77167496.95 77822508.75
Less: operating costs (XVI). 4 10205157.84 9822306.53
Taxes and surcharges 3069369.36 3193559.74
Selling and distribution expenses 476938.50 233086.71
G&A expenses 46124842.97 46901768.72
Financial expenses (1179537.25) (3418990.44)
Including: interest expenses 422950.59 356264.79
Interest income 1698292.14 3838789.68
Plus: other income 164150.75 153012.52
Investment income (XVI). 5 12077902.81 19300515.95
Including: investment losses in associates and joint ventures (10701895.08) (6898983.89)
Gains from derecognition of financial assets measured at
amortized costs - -
Gains from changes in fair value 2413062.80 2151780.82
Credit impairment (loss) gains (26291403.84) 708847.28
Asset impairment loss (20243658.34) -
Gains from disposal of assets - -
II. Operating (loss) profit (13409220.29) 43404934.06
Plus: non-operating revenue 1124656.60 6431.44
Less: non-operating expenses 93185.54 59123.40
III. Total profit (loss) (12377749.23) 43352242.10
Less: income tax expenses (3885606.10) 9825698.88
IV. Net (loss) profit (8492143.13) 33526543.22
(I) Net (loss) profit from continuing operations (8492143.13) 33526543.22
(II) Net profit from discontinued operations - -
V. Net of tax of other comprehensive income 14486701.51 (15225837.94)
(I) Other comprehensive income that cannot be reclassified into profit
or loss 15776775.00 (15325006.79)
1. Changes in re-measurement of defined benefit plans - -
2. Other comprehensive income that cannot be transferred to
profit or loss under the equity method - -
3. Changes in fair value of other equity instrument investments 15776775.00 (15325006.79)
4. Changes in fair value of the enterprise's own credit risk - -
5. Others - -
(II) Other comprehensive income that will be reclassified into profit
or loss (1290073.49) 99168.85
1. Other comprehensive income that can be transferred to profit
or loss under the equity method - -
2. Changes in fair value of other debt investments - -
3. Amount of financial assets reclassified and included in other
comprehensive income - -
4. Provision for credit impairment of other debt investments - -
5. Reserves of cash flow hedges (effective portion of cash flow
hedging profit or loss) - -
6. Differences arising from translation of foreign-currency
financial statements (1290073.49) 99168.85
7. Others - -
VI. Total comprehensive (loss) income 5994558.38 18300705.28
The notes are an integral part of the financial statements
- 9 -Shenzhen Textile (Holdings) Co. Ltd.Consolidated Statement of Cash Flows
For Year Ended December 31 2024
Consolidated Statement of Cash Flows
RMB
Notes Amount for the current Amount for theyear previous year
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 3390788584.83 2985794229.99
Refunds of taxes and surcharges received 21049133.80 5073509.20
Other cash received related to operating activities (V). 55(1) 87008969.95 87277323.90
Sub-total of cash inflows from operating activities 3498846688.58 3078145063.09
Cash paid for purchase of goods and receipt of services 2842864632.73 2466252261.73
Cash paid to and on behalf of employees 238890310.33 255045680.87
Cash paid for taxes and surcharges 32071014.09 54636406.53
Other cash paid related to operating activities (V). 55(1) 153756206.34 117443974.16
Sub-total of cash outflows from operating activities 3267582163.49 2893378323.29
Net cash flows from operating activities (V). 56(1) 231264525.09 184766739.80
II. Cash flows from investing activities:
Cash received from recovery of investment 1349489.37 -
Cash received from investment income 11747113.36 13769440.75
Net cash received from disposal of fixed assets intangible
assets and other long-term assets (18.74) 11634.84
Net cash received from disposal of subsidiaries and other
business units - -
Other cash received related to investing activities (V). 55(2) 1697000000.00 1454000000.00
Sub-total of cash inflows from investing activities 1710096583.99 1467781075.59
Cash paid for the purchase of fixed assets intangible assets
and other long-term assets 29441167.62 64069967.97
Cash paid for investments - -
Net cash paid to acquire subsidiaries and other business units - -
Other cash paid related to investing activities (V). 55(2) 1605454000.00 1840500000.00
Sub-total of cash outflows from investing activities 1634895167.62 1904569967.97
Net cash flows from the investing activities 75201416.37 (436788892.38)
III. Cash flows from financing activities:
Cash received from absorption of investments - -
Including: cash received by subsidiaries from absorption of
investments of minority shareholders - -
Cash received from acquisition of borrowings - 8000000.00
Other cash received related to financing activities - -
Sub-total of cash inflows from financing activities - 8000000.00
Cash paid for debt repayments 406216304.56 103387387.94
Cash paid for distribution of dividends and profits or
payment of interests 50633653.38 57324944.21
Including: dividends and profits paid to minority
shareholders by subsidiaries - -
Other cash paid related to financing activities (V). 55(3) 9508462.57 8776024.71
Sub-total of cash outflows from financing activities 466358420.51 169488356.86
Net cash flows from financing activities (466358420.51) (161488356.86)
IV. Effect of fluctuation in exchange rate on cash and cash
equivalents 556861.07 456132.31
V. Net increase (decrease) in cash and cash equivalents (V). 56(1) (159335617.98) (413054377.13)
Plus: balance of cash and cash equivalents at the beginning
of the year (V). 56(2) 461420457.33 874474834.46
VI. Balance of cash and cash equivalents at the end of the year (V). 56(2) 302084839.35 461420457.33
The notes are an integral part of the financial statements
- 10 -Shenzhen Textile (Holdings) Co. Ltd.Statement of Cash Flows of the Parent Company
For Year Ended December 31 2024
Statement of Cash Flows of the Parent Company
RMB
Notes Amount for the Amount for thecurrent year previous year
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of
services 80553754.68 79719541.58
Refunds of taxes and surcharges received - -
Other cash received related to operating activities 7902075.25 20183240.81
Sub-total of cash inflows from operating activities 88455829.93 99902782.39
Cash paid for purchase of goods and receipt of
services 2842492.81 3005590.09
Cash paid to and on behalf of employees 35045305.67 38735139.38
Cash paid for taxes and surcharges 13926380.37 19540659.95
Other cash paid related to operating activities 15727708.36 18940923.33
Sub-total of cash outflows from operating activities 67541887.21 80222312.75
Net cash flows from operating activities 20913942.72 19680469.64
II. Cash flows from investing activities:
Cash received from recovery of investment 1554056.96 -
Cash received from investment income 7790814.29 12954592.48
Net cash received from disposal of fixed assets
intangible assets and other long-term assets - -
Net cash received from disposal of subsidiaries and
other business units - -
Other cash received related to investing activities 1373585151.73 1250200000.00
Sub-total of cash inflows from investing activities 1382930022.98 1263154592.48
Cash paid for the purchase of fixed assets intangible
assets and other long-term assets 2993281.20 2784786.15
Cash paid for investments - -
Net cash paid to acquire subsidiaries and other
business units - -
Other cash paid related to investing activities 1363000000.00 1550500000.00
Sub-total of cash outflows from investing activities 1365993281.20 1553284786.15
Net cash flows from the investing activities 16936741.78 (290130193.67)
III. Cash flows from financing activities:
Cash received from absorption of investments - -
Cash received from acquisition of borrowings - -
Other cash received related to financing activities - -
Sub-total of cash inflows from financing activities - -
Cash paid for debt repayments - -
Cash paid for distribution of dividends and profits or
payment of interests 33346867.31 30747575.73
Other cash paid related to financing activities - -
Sub-total of cash outflows from financing activities 33346867.31 30747575.73
Net cash flows from financing activities (33346867.31) (30747575.73)
IV. Effect of fluctuation in exchange rate on cash and
cash equivalents 1356.80 571.84
V. Net increase (decrease) in cash and cash equivalents 4505173.99 (301196727.92)
Plus: balance of cash and cash equivalents at the
beginning of the year 9125800.27 310322528.19
VI. Balance of cash and cash equivalents at the end of
the year 13630974.26 9125800.27
The notes are an integral part of the financial statements
- 11 -Shenzhen Textile (Holdings) Co. Ltd.Consolidated Statement of Changes in Shareholders' Equity
For Year Ended December 31 2024
Consolidated Statement of Changes in Shareholders' Equity
RMB
Amount for the current year
Item Equity attributable to shareholders of the parent companyOther comprehensive Total shareholders'Equity Capital reserve income Surplus reserves Undistributed profits
Minority interests equity
I. Balance as at the end of the previous year 506521849.00 1961599824.63 93607380.81 104262315.64 216160896.14 1229765091.74 4111917357.96
Plus: changes in accounting policies - - - - - - -
Correction of prior period errors - - - - - - -
Business combination under
common control - - - - - - -
Others - - - - - - -
II. Balance at the beginning of the current
year 506521849.00 1961599824.63 93607380.81 104262315.64 216160896.14 1229765091.74 4111917357.96
III. Increase/decrease in the current year - - 13270426.51 - 56447217.52 53685632.14 123403276.17
(I) Total comprehensive income - - 13270426.51 - 89371134.24 53685632.14 156327192.89
(II) Capital contributed or reduced by
shareholders - - - - - - -
1. Ordinary shares invested by shareholders - - - - - - -
2. Amount of share-based payments included
in shareholders' equity - - - - - - -
3. Others - - - - - - -
(III) Profit distribution - - - - (32923916.72) - (32923916.72)
1. Withdrawal of surplus reserves - - - - - - -
2. Profits distributed to shareholders - - - - (32923916.72) - (32923916.72)
3. Others - - - - - - -
(IV) Internal transfer of shareholders' equity - - - - - - -
1. Conversion of capital reserve into share
capital - - - - - - -
2. Conversion of surplus reserve into share
capital - - - - - - -
3. Surplus reserves offsetting losses - - - - - - -
4. Transfer of other comprehensive income
into retained earnings - - - - - - -
5. Others - - - - - - -
(V) Special reserves - - - - - - -
1. Withdrawal in the current year - - - - - - -
2. Use in the current year - - - - - - -
(VI) Others - - - - - - -
IV. Balance as at the end of the current year 506521849.00 1961599824.63 106877807.32 104262315.64 272608113.66 1283450723.88 4235320634.13Shenzhen Textile (Holdings) Co. Ltd.Consolidated Statement of Changes in Shareholders' Equity - Continued
For Year Ended December 31 2024
Consolidated Statement of Changes in Shareholders' Equity - Continued
RMB
Amount for the previous year
Item Equity attributable to shareholders of the parent companyOther comprehensive Total shareholders'Equity Capital reserve income Surplus reserves Undistributed profits
Minority interests equity
I. Balance as at the end of the previous year 506521849.00 1961599824.63 109596609.31 100909661.32 170636610.95 1181777770.21 4031042325.42
Plus: changes in accounting policies - - - - - - -
Correction of prior period errors - - - - - - -
Business combination under
common control - - - - - - -
Others - - - - - - -
II. Balance at the beginning of the current
year 506521849.00 1961599824.63 109596609.31 100909661.32 170636610.95 1181777770.21 4031042325.42
III. Increase/decrease in the current year - - (15989228.50) 3352654.32 45524285.19 47987321.53 80875032.54
(I) Total comprehensive income - - (15989228.50) - 79268250.45 47987321.53 111266343.48
(II) Capital contributed or reduced by
shareholders - - - - - - -
1. Ordinary shares invested by shareholders - - - - - - -
2. Amount of share-based payments included
in shareholders' equity - - - - - - -
3. Others - - - - - - -
(III) Profit distribution - - - 3352654.32 (33743965.26) - (30391310.94)
1. Withdrawal of surplus reserves - - - 3352654.32 (3352654.32) - -
2. Profits distributed to shareholders - - - - (30391310.94) - (30391310.94)
3. Others - - - - - - -
(IV) Internal transfer of shareholders' equity - - - - - - -
1. Conversion of capital reserve into share
capital - - - - - - -
2. Conversion of surplus reserve into share
capital - - - - - - -
3. Surplus reserves offsetting losses - - - - - - -
4. Transfer of other comprehensive income
into retained earnings - - - - - - -
5. Others - - - - - - -
(V) Special reserves - - - - - - -
1. Withdrawal in the current year - - - - - - -
2. Use in the current year - - - - - - -
(VI) Others - - - - - - -
IV. Balance as at the end of the current year 506521849.00 1961599824.63 93607380.81 104262315.64 216160896.14 1229765091.74 4111917357.96
The notes are an integral part of the financial statements
- 13 -Shenzhen Textile (Holdings) Co. Ltd.Statement of Changes in Shareholders' Equity of the Parent Company
For Year Ended December 31 2024
Statement of Changes in Shareholders' Equity of the Parent Company
RMB
Amount for the current year
Item Equity Capital reserve Other comprehensiveincome Surplus reserves Undistributed profits Total shareholders' equity
I. Balance as at the end of the previous year 506521849.00 1577392975.96 83629830.81 104262315.64 689309946.54 2961116917.95
Plus: changes in accounting policies - - - - - -
Correction of prior period errors - - - - - -
Others - - - - - -
II. Balance at the beginning of the current
year 506521849.00 1577392975.96 83629830.81 104262315.64 689309946.54 2961116917.95
III. Increase/decrease in the current year - - 14486701.51 - (41416059.85) (26929358.34)
(I) Total comprehensive income - - 14486701.51 - (8492143.13) 5994558.38
(II) Capital contributed or reduced by
shareholders - - - - - -
1. Ordinary shares invested by
shareholders - - - - - -
2. Amount of share-based payments
included in shareholders' equity - - - - - -
3. Others - - - - - -
(III) Profit distribution - - - - (32923916.72) (32923916.72)
1. Withdrawal of surplus reserves - - - - - -
2. Profits distributed to shareholders - - - - (32923916.72) (32923916.72)
3. Others - - - - - -
(IV) Internal transfer of shareholders'
equity - - - - - -
1. Conversion of capital reserve into
share capital - - - - - -
2. Conversion of surplus reserve
into share capital - - - - - -
3. Surplus reserves offsetting losses - - - - - -
4. Transfer of other comprehensive
income into retained earnings - - - - - -
5. Others - - - - - -
(V) Special reserves - - - - - -
1. Withdrawal in the current year - - - - - -
2. Use in the current year - - - - - -
(VI) Others - - - - - -
IV. Balance as at the end of the current year 506521849.00 1577392975.96 98116532.32 104262315.64 647893886.69 2934187559.61
- 14 -Shenzhen Textile (Holdings) Co. Ltd.Statement of Changes in Shareholders' Equity of the Parent Company - Continued
For Year Ended December 31 2024
Statement of Changes in Shareholders' Equity of the Parent Company - Continued
RMB
Amount for the previous year
Item Equity Capital reserve Other comprehensiveincome Surplus reserves Undistributed profits Total shareholders' equity
I. Balance as at the end of the previous year 506521849.00 1577392975.96 98855668.75 100909661.32 689527368.58 2973207523.61
Plus: changes in accounting policies - - - - - -
Correction of prior period errors - - - - - -
Others - - - - - -
II. Balance at the beginning of the current
year 506521849.00 1577392975.96 98855668.75 100909661.32 689527368.58 2973207523.61
III. Increase/decrease in the current year - - (15225837.94) 3352654.32 (217422.04) (12090605.66)
(I) Total comprehensive income - - (15225837.94) - 33526543.22 18300705.28
(II) Capital contributed or reduced by
shareholders - - - - - -
1. Ordinary shares invested by
shareholders - - - - - -
2. Amount of share-based payments
included in shareholders' equity - - - - - -
3. Others - - - - - -
(III) Profit distribution - - - 3352654.32 (33743965.26) (30391310.94)
1. Withdrawal of surplus reserves - - - 3352654.32 (3352654.32) -
2. Profits distributed to shareholders - - - - (30391310.94) (30391310.94)
3. Others - - - - - -
(IV) Internal transfer of shareholders'
equity - - - - - -
1. Conversion of capital reserve into
share capital - - - - - -
2. Conversion of surplus reserve
into share capital - - - - - -
3. Surplus reserves offsetting losses - - - - - -
4. Transfer of other comprehensive
income into retained earnings - - - - - -
5. Others - - - - - -
(V) Special reserves - - - - - -
1. Withdrawal in the current year - - - - - -
2. Use in the current year - - - - - -
(VI) Others - - - - - -
IV. Balance as at the end of the current year 506521849.00 1577392975.96 83629830.81 104262315.64 689309946.54 2961116917.95
The notes are an integral part of the financial statements
- 15 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
（I） Basic information of the Company
1. Company profile
Shenzhen Textile (Holdings) Co. Ltd. (hereinafter referred to as "the Company") is a joint stock limited company
registered in Guangdong Province. The Company was listed on Shenzhen Stock Exchange in August 1994. The
Company has publicly issued RMB ordinary shares (A shares) and domestically listed foreign shares (B shares) to the
domestic and foreign public respectively and listed for trading.Headquartered in Shenzhen Guangdong Province the Company and its subsidiaries (hereinafter referred to as "the
Group") are principally engaged in the research and development production and marketing of polarizers for liquid
crystal displays as well as property management and textile and apparel businesses which are mainly located in the
prosperous commercial area of Shenzhen.
2. Approval date of financial statements
The consolidated and parent company's financial statements of the Company were approved by the Board of Directors
on March 26 2025.（II） Basis for preparation of the financial statements
1. Basis for preparation
The Group implements the Accounting Standards for Business Enterprises and related provisions issued by the Ministry
of Finance. In addition the Group also discloses relevant financial information in accordance with the Rules for the
Compilation and Reporting of Information Disclosure by Companies Issuing Securities to the Public No. 15 - General
Provisions on Financial Reports (Revised in 2023).
2. Going concern
The Group has evaluated its going-concern ability for 12 months from December 31 2024 and has not found any
matters or circumstances that cast significant doubt on the going-concern ability. Therefore the financial statements
have been prepared on the going concern basis.
3. Accounting basis and valuation principle
The accounting of the Group is based on the accrual basis. Except for certain financial instruments measured at fair
value the financial statements are measured at historical cost. In the event of any asset impairment a provision for
impairment will be made in accordance with relevant provisions.Under the historical cost measurement assets are measured at the amount of cash or cash equivalents paid or the fair
value of the consideration paid at the time of acquisition. Liabilities are measured at the amount of money or assets
actually received for assuming current obligations or the contract amount of assuming current obligations or the
amount of cash or cash equivalents expected to be paid to repay liabilities in daily activities.Fair value is the price received from the sale of an asset or paid for the transfer of a liability by a market participant in an
orderly transaction occurring on the measurement date. Regardless of whether the fair value is observable or estimated
by using valuation techniques the fair value measured and disclosed in these financial statements is determined on this
basis.- 16 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(II) Basis for preparation of financial statements - continued
3. Accounting basis and valuation principle - continued
For financial assets where the transaction price is taken as the fair value at initial recognition and valuation techniques
involving unobservable input value are used in the subsequent measurement of fair value the valuation techniques are
corrected during the valuation process to make the initial recognition result determined by the valuation techniques equal
to the transaction price.The fair value measurement is divided into three levels based on the observability of the input value of the fair value and
the importance of such input value to the fair value measurement as a whole:
Level 1 input value is the unadjusted quoted price in active markets for identical assets or liabilities that are available on the
measurement date.Level 2 input value is the directly or indirectly observable input value of the relevant assets or liabilities except for the level 1
input value.Level 3 input value is the unobservable input value of the relevant assets or liabilities.（III） Significant accounting policies and accounting estimates
1. Statement in compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflect the Company's consolidated and parent company's financial position as at
December 31 2024 and the consolidated and parent company's operating results changes in consolidated and parent
company's shareholders' equity and consolidated and parent company's cash flows for the year then ended.
2. Accounting period
The Company adopts the Gregorian calendar year for its accounting year that is from January 1 to December 31 of each
year.
3. Operating cycle
Operating cycle refers to the period from the purchase of assets for processing to the realization of cash or cash
equivalents by the enterprise. The operating cycle of the Company is 12 months.
4. Recording currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate.The Company and its domestic subsidiaries adopt RMB as the recording currency. The Company's overseas subsidiaries
determine RMB as their recording currency based on the currency in the main economic environment in which they
operate. The currency used by the Company in preparing these financial statements is RMB.- 17 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
5. Importance criteria determination method and selection basis
Item Importance criteria
Significant accounts receivable with the provision for bad debts The individual book balance accounts for more than 0.5%
made on an individual basis of the total assets
The individual recovery or reversal amount accounts for
Recovery or reversal amount of provision for bad debts of more than 10% of the total amount of provision for bad
significant accounts receivable debts recovery or reversal of the corresponding accounts
receivable and the amount exceeds RMB 10 million
Advances to suppliers with aging over 1 year and of significant Individual amount accounts for more than 0.5% of total
amount assets
Important accounts payable advances from customers Individual amount accounts for more than 0.5% of total
contract liabilities and other payables with aging over 1 year assets
Other cash received related to significant investing activities The amount exceeds RMB 50 million
Other cash paid related to significant investing activities The amount exceeds RMB 50 million
The total assets total revenue or total profit of the non-
Major non-wholly-owned subsidiaries wholly-owned subsidiary account for more than 10% of theamount of the corresponding items in the consolidated
financial statements of the Group
The book value of the long-term equity investments of the
Significant joint ventures or associates enterprise at the end of the year accounts for more than 5%of the net assets of the consolidated financial statements of
the Group
6. Accounting treatment method of business combination under common control and not under common
control
Business combinations are categorized into those under common control and those not under common control.
6.1 Business combinations under common control
If before and after the business combination all parties involved are ultimately controlled by the same party or the same
group of parties and such control is not temporary the combination is considered under common control.The assets and liabilities obtained in the business combination are measured at their book value as recorded in the
consolidated financial statements of the ultimate controller on the combination date. Any difference between the book
value of the net assets acquired by the combining party and the book value of the consideration paid is adjusted against
the share premium in capital reserve. If the equity premium is insufficient the difference is adjusted against retained
earnings.All direct expenses incurred for the purpose of the business combination are recognized in current profit or loss as they
occur.
6.2 Business combinations not under common control and goodwill
When the entities involved in the combination are not under the ultimate control of the same party or the same group of
parties before and after the combination it is considered a business combination not under common control.The combination cost refers to the fair value of the assets paid the liabilities incurred or assumed and the equity
instruments issued by the acquirer to obtain the right of control of the acquiree. Any intermediary fees for business
combination including but not limited to audit legal and valuation consulting services and other related G&A
expenses incurred by the acquirer are charged to current profit or loss as they arise.Any identifiable assets liabilities and contingent liabilities of the acquiree that meet the recognition criteria and are
obtained by the acquirer in the combination are measured at fair value on the acquisition date.- 18 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
6. Accounting treatments for business combination under common control and not under common control -
continued
6.2 Business combination not under common control and goodwill - continued
If the combination cost exceeds the acquiree's fair value share of net identifiable assets obtained this difference is
recognized as goodwill and initially measured at cost. If the combination cost is less than the acquiree's fair value share
of net identifiable assets obtained the acquirer shall first reassess the fair values of all identifiable assets liabilities and
contingent liabilities of the acquiree as well as the measurement of the combination cost. After reassessment if the
combination cost is still less than acquiree's fair value share of net identifiable assets obtained the difference is included
in current profit or loss.Goodwill arising from a business combination is presented separately in the consolidated financial statements and is
measured at cost less any accumulated provision for impairment.
7. Criteria for determining control and methods of preparing consolidated financial statements
7.1 Criteria for determining control
Control means that an investor has power over the investee derives variable returns by participating in the investee's
relevant activities and can use that power to affect the amount of returns. Whenever changes in relevant facts and
circumstances alter any element of this definition of control the Group will reassess the situation.
7.2 Methods of preparing consolidated financial statements
The consolidation scope in the consolidated financial statements is determined on the basis of control.A subsidiary is consolidated from the date the Group obtains the right of control over it until the date such right is lost.For subsidiaries that the Group disposes of operating results and cash flows prior to the disposal date (the date when the
loss of control occurs) are appropriately included in the consolidated income statement and consolidated cash flow
statement.For subsidiaries acquired in a business combination not under common control their operating results and cash flows
from the acquisition date (the date when the right of control is obtained) are appropriately included in the consolidated
income statement and consolidated cash flow statement.For subsidiaries acquired in a business combination under common control regardless of the point in time during the
reporting period at which the combination takes place the subsidiary is deemed to have been under the Group's
consolidation scope from the date it came under the ultimate controller. Its operating results and cash flows from the
earliest beginning date of the reporting period are appropriately included in the consolidated income statement and
consolidated cash flow statement.The primary accounting policies and reporting periods adopted by the subsidiaries are determined in accordance with the
uniform accounting policies and reporting periods set by the Company.- 19 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
7. Judgment criteria for control measures and preparation of the consolidated financial statements - continued
7.2 Methods of preparing consolidated financial statements - continued
Any effects on the consolidated financial statements from intercompany transactions between the Company and its
subsidiaries or among the subsidiaries themselves are eliminated upon consolidation.Any portion of the subsidiary's owners' equity not attributable to the parent company is recognized as non-controlling
interests and presented under "Minority Interests" in the shareholders' equity section of the consolidated balance sheet.The share of the subsidiary's current net profit or loss attributable to these minority interests is presented in the
consolidated income statement under the net profit item as "minority interest income".If the losses borne by minority shareholders exceed the share of owners' equity they hold at the beginning of the
subsidiary's period the excess continues to be deducted from the minority interests.Transactions involving the purchase of a subsidiary's minority interests or the partial disposal of a subsidiary's equity
investments without losing the right of control are accounted for as equity transactions. The book value of the parent
company's owners' equity and the minority interests are adjusted to reflect the changes in their respective ownership in
the subsidiary. Any difference between the adjustment to minority interests and the fair value of the consideration paid
or received is adjusted against the capital reserve. If the capital reserve is insufficient the difference is adjusted against
retained earnings.
8. Joint venture arrangements
Joint venture arrangements are classified as either joint operations or joint ventures based on the rights and obligations
of the parties—determined by factors such as the arrangement's structure legal form and contractual terms. A joint
operation is a joint arrangement in which the parties have rights to the related assets and obligations for the related
liabilities. A joint operation refers to those joint venture arrangements under which the joint venture is entitled to
relevant assets and be responsible for relevant liabilities. A joint venture is a joint venture arrangement in which the
parties are entitled only to the arrangement's net assets.The Group accounts for investments in joint ventures using the equity method. For further details refer to Note (III)
Section 17.3.2 "Long-term equity investments accounted for under the equity method."
9. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits readily available for payment. Cash equivalents refer to short-term (generally
maturing within three months from the purchase date) highly liquid investments held by the Group that are easily
convertible into known amounts of cash and subject to an insignificant risk of value changes.
10. Translation of foreign currency transactions and financial statements denominated in foreign currency
10.1 Foreign currency transactions
Foreign currency transactions are initially recognized using an exchange rate approximating the spot exchange rate on
the transaction date determined by a reasonable systematic method.- 20 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
10. Foreign currency transactions and translation of foreign currency statements - continued
10.1 Foreign currency transactions - continued
At each balance sheet date foreign currency monetary items are translated into RMB at the spot rate on that date. Any
exchange differences arising from changes in the spot exchange rate (compared to the rate at initial recognition or the
previous balance sheet date) are recognized in current profit or loss except for: (1) exchange differences on foreign-
currency-specific borrowings that qualify for capitalization which are capitalized as part of the cost of the related asset
during the capitalization period; (2) exchange differences on hedging instruments used to hedge foreign exchange risk
which are accounted for under hedge accounting; (3) foreign exchange differences arising from changes in the book
balance of monetary items classified as measured at fair value through other comprehensive income except for
amortized costs are recognized in current profit or loss.When preparing consolidated financial statements involving foreign operations if a foreign currency monetary item
essentially constitutes a net investment in a foreign operation any exchange differences arising from fluctuation in
exchange rate are included under "Exchange differences on translation of foreign currency statements" in other
comprehensive income. Upon disposal of the foreign operation these differences are recognized in profit or loss for the
disposal period.Foreign currency non-monetary items measured at historical cost continue to be measured using the spot exchange rate
in recording currency on the transaction date. For foreign currency non-monetary items measured at fair value the spot
exchange rate on the date the fair value is determined is used for translation. Any difference between the translated
amount in recording currency and the original currency is treated as a fair value change (including fluctuation in
exchange rate) and is recognized in current profit or loss or other comprehensive income as appropriate.
10.2 Translation of foreign-currency financial statements
To prepare consolidated financial statements foreign-currency financial statements of overseas operations are translated
into RMB as follows: all assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance
sheet date; shareholders' equity items are translated at the spot exchange rate on the date of occurrence; all items in the
income statement and items reflecting profit distribution are translated using an exchange rate approximating the spot
exchange rate on the transaction date; any difference between the sum of translated assets and the sum of translated
liabilities plus equity items is recognized as other comprehensive income and included in shareholders' equity.Foreign currency cash flows and the cash flows of overseas subsidiaries are translated using an exchange rate
approximating the spot exchange rate on the date of the cash flow. The impact of fluctuation in exchange rate on cash
and cash equivalents is presented separately in the statement of cash flows under "Effect of exchange rate changes on
cash and cash equivalents."
The figures for the prior year-end and the actual amounts for the previous year are presented according to the amounts
translated in the previous year's financial statements.When the Group disposes of its entire owners' equity in a foreign operation or otherwise loses the right of control over a
foreign operation—whether by partially disposing of equity investments or for any other reason—all differences on
translation of foreign currency statements related to that foreign operation and presented under shareholders' equity
(attributable to the parent company) in the balance sheet are transferred in full to profit or loss for the disposal period.- 21 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
10. Foreign currency transactions and translation of foreign currency statements - continued
10.2 Translation of foreign-currency financial statements - continued
When disposing of part of an equity investments or in other circumstances that reduce the Group's ownership interest in
an overseas operation without losing the right of control over that operation any differences on translation of foreign
currency statements related to the disposed portion are attributed to minority interests and are not transferred to profit or
loss for the current period. When disposing of a portion of equity in an overseas operation that is classified as an
associate or a joint venture the differences on translation of foreign currency statements related to that operation are
transferred to profit or loss in the disposal period in proportion to the percentage of equity disposed.
11. Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to the contractual provisions of a
financial instrument.For purchases or sales of financial assets in the ordinary course of business the Group recognizes the assets to be
received and the liabilities to be assumed on the trade date or derecognizes the assets sold on the trade date.Financial assets and financial liabilities are measured at fair value upon initial recognition (see Note (II) "Basis of
accounting and valuation principles" for details on determining fair value). For financial assets and liabilities measured
at fair value through profit or loss transaction costs are recognized directly in profit or loss for the current period; for
other categories of financial assets and liabilities the relevant transaction costs are included in the initial recognition
amount. When the Group initially recognizes accounts receivable that do not include a significant financing component
or when the financing component of a contract not exceeding one year is disregarded under Accounting Standards for
Business Enterprises No. 14 - Revenue (“Revenue Standard”) such receivables are initially measured at the transaction
price as defined in the Revenue Standard.The effective interest method is the method used to calculate the amortized cost of a financial asset or liability and to
allocate the interest income or interest expenses over the relevant accounting periods.The effective interest rate is the rate that discounts the estimated future cash flows over the expected life of a financial
asset or liability to the financial asset's book balance or the financial liability's amortized cost. In determining the
effective interest rate the Group estimates expected cash flows based on all contractual terms of the financial asset or
liability (e.g. early repayment extension call options or other similar options) but does not factor in expected credit
losses.The amortized cost of a financial asset or liability is the initial recognized amount minus any repaid principal plus or
minus the accumulated amortization of the difference between the initial recognized amount and the amount at maturity
using the effective interest method and then minus the accumulated provision for losses (applicable only to financial
assets).- 22 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets
After initial recognition the Group subsequently measures different categories of financial assets at amortized cost at
fair value through other comprehensive income or at fair value through profit or loss.If the contractual terms of a financial asset stipulate that on specified dates cash flows comprise solely payments of
principal and interest on the outstanding principal and the Group's business model for managing this financial asset is to
collect the contractual cash flows the Group classifies this financial asset as measured at amortized cost. Such financial
assets mainly include monetary funds notes receivable accounts receivable and other receivables.If the contractual terms of a financial asset stipulate that on specified dates cash flows comprise solely payments of
principal and interest on the outstanding principal and the Group's business model for managing the financial asset is
both to collect contractual cash flows and to sell the financial asset then the Group classifies this asset as measured at
fair value through other comprehensive income. Such financial assets with a maturity of more than one year from the
date of acquisition are presented as "Other debt investments" while those maturing within one year (inclusive) from the
balance sheet date are presented under "Non-current assets due within one year." Accounts receivable and notes
receivable classified upon acquisition as measured at fair value through other comprehensive income are presented under
"Receivables financing" and any other items acquired with a maturity of one year (inclusive) or less are presented under
"Other current assets."
At initial recognition on an individual financial asset basis the Group may irrevocably designate a non-trading equity
instrument investment other than any contingent consideration recognized in a business combination not under common
control as measured at fair value through other comprehensive income. Such financial assets are presented as "Other
equity instrument investments."
If a financial asset meets any of the following conditions it indicates that the Group holds this asset for trading purposes:
The main purpose of acquiring the financial asset is to sell it in the near term.Upon initial recognition the financial asset is part of an identifiable portfolio of financial instruments that is
collectively managed and there is objective evidence of a recent pattern of short-term profit-taking.The financial asset is a derivative except for derivatives that meet the definition of a financial guarantee contract or
are designated as effective hedging instruments.Financial assets measured at fair value through profit or loss include those classified as such and those designated as
such:
Any financial asset that does not meet the classification criteria for measurement at amortized cost or at fair value through
other comprehensive income is classified as measured at fair value through profit or loss.At initial recognition to eliminate or significantly reduce accounting mismatches the Group may irrevocably
designate a financial asset as measured at fair value through profit or loss.- 23 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
Financial assets measured at fair value through profit or loss are presented under "Financial assets held for trading."
Those due in more than one year from the balance sheet date (or with no fixed maturity) and expected to be held for
more than one year are presented under "Other non-current financial assets."
11.1.1 Financial assets measured by amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective interest
method and any gain or loss arising from impairment or derecognition is recognized in profit or loss.The Group recognizes interest income on financial assets measured at amortized cost using the effective interest method.For purchased or originated financial assets that are already credit-impaired the Group determines interest income from
the date of initial recognition based on the asset's amortized cost and a credit-adjusted effective interest rate. For all other
financial assets the Group calculates interest income by multiplying the book balance of the asset by the effective
interest rate.
11.1.2 Financial assets measured at fair value through other comprehensive income
For a financial asset classified as measured at fair value through other comprehensive income any impairment loss or
gain and interest income calculated using the effective interest method are recognized in profit or loss while all other
fair value changes are recognized in other comprehensive income. The amount recognized in profit or loss each period is
the same as if the asset had been measured at amortized cost throughout its life. When such a financial asset is
derecognized the cumulative gains or losses previously recognized in other comprehensive income are transferred from
other comprehensive income to profit or loss.For a non-trading equity instrument investment designated as measured at fair value through other comprehensive
income fair value changes are recognized in other comprehensive income. When the financial asset is derecognized the
cumulative gains or losses previously recognized in other comprehensive income are transferred out of other
comprehensive income and into retained earnings. During the period the Group holds this non-trading equity instrument
investment if the right to receive dividends is established the related economic benefits are likely to flow to the Group
and the amount of dividends can be measured reliably then the Group recognizes dividend income in profit or loss.
11.1.3 Financial assets measured at fair value through the current profit or loss
Financial assets measured at fair value through profit or loss are subsequently measured at fair value; gains or losses
arising from fair value changes as well as any dividend and interest income related to these assets are recognized in
profit or loss.- 24 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments
The Group recognizes impairment allowances and provision for losses based on expected credit losses for financial
assets measured at amortized cost financial assets classified as fair value through other comprehensive income and
lease receivables.For all notes receivable and accounts receivable arising from transactions governed by the Revenue Standard as well as
operating lease receivables arising from transactions governed by Accounting Standards for Business Enterprises No. 21
- Leases the Group measures the provision for loss at an amount equal to the lifetime expected credit losses.For other financial instruments except for those purchased or originated with credit loss the Group evaluates changes in
credit risk since initial recognition at each balance sheet date. If the credit risk of such a financial instrument has
significantly increased since initial recognition the Group measures the provision for loss at an amount equal to the
lifetime expected credit losses; if it has not significantly increased the Group measures the provision for loss at an
amount equal to the 12-month expected credit losses. Except for financial assets classified as fair value through other
comprehensive income any increase or reversal of the provision for credit losses is recognized as an impairment loss or
gain in the current period's profit or loss. For financial assets classified as fair value through other comprehensive
income the Group recognizes the provision for credit losses in other comprehensive income and records the impairment
loss or gain in profit or loss without reducing the asset's book value in the balance sheet.If in a prior period the Group measured the provision for loss at an amount equal to the lifetime expected credit losses
(due to a significant increase in credit risk since initial recognition) but at the current balance sheet date that significant
increase in credit risk no longer applies then the Group measures the provision for loss at an amount equal to the 12-
month expected credit losses. The amount of any resulting reversal is recognized as an impairment gain in profit or loss.
11.2.1 Significant increase in credit risk
The Group uses reasonable and supportable forward-looking information to compare the risk of default on a financial
instrument at the balance sheet date with the risk of default at initial recognition in order to determine whether the credit
risk has significantly increased since initial recognition.- 25 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.2 Impairment financial instruments - continued
11.2.1 Significant increase in credit risk - continued
When the Group assesses whether credit risk has increased significantly it considers the following factors:
(1) Whether internal price indicators resulting from changes in credit risk have undergone a significant change.
(2) Whether if an existing financial instrument is effectively originated or issued as a new financial instrument on the
balance sheet date there is a significant change in the interest rate or other terms of that instrument (e.g. more stringent
contractual terms increased collateral or guarantees or a higher yield).
(3) Whether external market indicators of credit risk for the same financial instrument or similar instruments with the
same expected term have changed significantly. Such indicators include credit spreads credit default swap (CDS) prices
for the borrower the length of time and extent to which a financial asset's fair value is below its amortized cost and
other market information related to the borrower (e.g. changes in the prices of the borrower's debt or equity instruments).
(4) Whether the external credit rating of the financial instrument has actually changed or is expected to change
significantly.
(5) Whether there has been a downgrade in the debtor's internal credit rating either actual or anticipated.
(6) Whether there has been an adverse change in the debtor's business financial or economic conditions that is expected
to significantly affect the debtor's ability to meet its debt obligations.
(7) Whether the debtor's operating performance whether actual or expected has changed significantly.
(8) Whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) Whether there has been a significantly adverse change in the regulatory economic or technological environment in
which the debtor operates.
(10) Whether the value of collateral securing the debt or the quality of a third-party guarantee or credit enhancement
has changed significantly. Such changes are expected to reduce the debtor's economic incentive to repay under the
contractual schedule or affect the probability of default.
(11) Whether there has been a significant change in factors that would reduce the borrower's economic incentive to
repay in accordance with the contractual terms.
(12) Whether the loan contract is expected to be modified including the potential release or amendment of contractual
obligations due to anticipated breaches of contract granting interest-free periods raising interest rates requiring
additional collateral or guarantees or otherwise modifying the contractual framework of the financial instrument.
(13) Whether there is a significant change in the debtor's expected performance or repayment behavior.
(14) Whether the Group's credit management approach for the financial instrument has changed.
Regardless of the outcome of the above assessment if payments under the financial instrument's contract are more than
(or equal to) 30 days past due it indicates that the financial instrument's credit risk has increased significantly.On the balance sheet date if the Group concludes that a financial instrument has only low credit risk it presumes the
credit risk has not increased significantly since initial recognition. A financial instrument is considered to have low
credit risk if its risk of default is low the borrower has a strong capacity to meet its contractual cash flow obligations in
the short term and even over a longer period adverse changes in economic and operating conditions would not
necessarily reduce the borrower's ability to meet those obligations.- 26 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.2 Impairment financial instruments - continued
11.2.2 Financial assets with credit loss
When one or more events occur that the Group expects to adversely affect the future cash flows of a financial asset that
asset is considered credit-impaired. Evidence for a credit-impaired financial asset includes the following observable
information:
(1) The debtor breaches a contract such as default or delinquency in interest or principal payments.
(2) The debtor breaches the contract such as default or delay in repayment of interest or principal.
(3) The creditor grants concessions to the debtor in consideration of the debtor's financial difficulties that would not
otherwise be offered under normal circumstances.
(4) The debtor is highly likely to go bankrupt or undertake other financial restructuring.
(5) The issuer's or debtor's financial difficulties lead to the disappearance of an active market for the financial asset.
(6) A financial asset is purchased or originated at a substantial discount reflecting the fact that a credit loss has
occurred.Based on the Group's internal credit risk management if internal recommendations or externally obtained information
indicates that the debtor of a financial instrument cannot fully repay all creditors including the Group (regardless of any
guarantee obtained by the Group) the Group considers this a default event.Regardless of the above assessment if payments under the financial instrument's contract are more than (or equal to) 90
days past due the Group presumes the instrument is in default.
11.2.3 Determination of expected credit losses
For financial assets and lease receivables the expected credit loss is the present value of the difference between the
contractual cash flows the Group is entitled to receive and the cash flows the Group actually expects to receive.When measuring the expected credit losses on financial instruments the Group's method reflects: an unbiased
probability-weighted average determined by evaluating a range of possible outcomes; the time value of money; and
reasonable and supportable information about past events current conditions and forecasts of future economic
conditions available without undue cost or effort at the balance sheet date.
11.2.4 Write-off of financial assets
If the Group no longer reasonably expects to recover all or part of the contractual cash flows of a financial asset the
Group writes off the book balance of the financial asset directly. This write-off constitutes derecognition of the relevant
financial asset.- 27 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.3 Transfer of financial assets
A financial asset is derecognized if one of the following conditions is met: (1) the contractual right to receive cash flows
from the financial asset expires; (2) the financial asset has been transferred and substantially all the risks and rewards of
ownership of the asset have been transferred to the transferee; or (3) the financial asset has been transferred and
although the Group has neither transferred nor retained substantially all the risks and rewards of ownership it has not
retained control over the asset.If the Group has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset
but retains control of it the Group continues to recognize the transferred financial asset to the extent of its continuing
involvement and recognizes a corresponding liability. The Group measures that liability as follows:
Where the transferred financial asset is measured at amortized cost the book value of the related liability equals the
book value of the asset in which the Group continues to be involved minus the amortized cost of any rights retained by
the Group (if the Group retained such rights due to the transfer) and plus the amortized cost of any obligations assumed
by the Group (if the Group assumed such obligations due to the transfer). Such liabilities are not designated as financial
liabilities measured at fair value through profit or loss.Where the transferred financial asset is measured at fair value the book value of the related liability equals the
book value of the asset in which the Group continues to be involved minus the fair value of any rights retained by the
Group (if the Group retained such rights due to the transfer) and plus the fair value of any obligations assumed by the
Group (if the Group assumed such obligations due to the transfer). The fair values of such rights and obligations are
measured on a stand-alone basis.When the full transfer of a financial asset qualifies for derecognition the difference between the book value of the
transferred financial asset on the derecognition date and the sum of the consideration received and the corresponding
portion of the cumulative fair value changes previously recognized in other comprehensive income is recognized in
profit or loss. If the transferred asset by the Group is a non-trading equity instrument investment designated as measured
at fair value through other comprehensive income any cumulative gains or losses previously recognized in other
comprehensive income are transferred out of other comprehensive income and into retained earnings.When a partial transfer of a financial asset qualifies for derecognition the book value of the original asset before transfer
is allocated between the portion being derecognized and the portion that continues to be recognized based on the
relative fair values of each portion on the transfer date. The difference between (a) the consideration received for the
derecognized portion plus the corresponding portion of the cumulative fair value changes previously recognized in other
comprehensive income and (b) the book value of the derecognized portion on the derecognition date is recognized in
profit or loss. If the transferred asset by the Group is a non-trading equity instrument investment designated as measured
at fair value through other comprehensive income any cumulative gains or losses previously recognized in other
comprehensive income are transferred out of other comprehensive income and into retained earnings.If a full transfer of a financial asset does not satisfy the derecognition criteria the Group continues to recognize the
entire transferred financial asset and recognizes the consideration received as a liability.- 28 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments
Based on the contractual terms and the economic substance of the issued financial instrument rather than merely its legal
form and in conjunction with the definitions of financial liabilities and equity instruments the Group classifies the
financial instrument (or its components) as either a financial liability or an equity instrument at initial recognition.
11.4.1 Classification recognition and measurement of financial liabilities
Upon initial recognition financial liabilities are classified as financial liabilities measured at fair value through profit or
loss or other financial liabilities.
11.4.1.1 Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading (including
derivatives classified as financial liabilities) and those designated as measured at fair value through profit or loss. Except
for derivative financial liabilities which are presented separately financial liabilities measured at fair value through
profit or loss are presented as financial liabilities held for trading.If a financial liability meets any of the following conditions it indicates that the Group has assumed this liability for
trading purposes:
The primary purpose of assuming the financial liability is to repurchase it in the near term.Upon initial recognition the financial liability is part of an identifiable portfolio of financial instruments that is
collectively managed and there is objective evidence of a recent pattern of short-term profit-taking.The financial liability is a derivative except for derivatives that meet the definition of a financial guarantee contract
or are designated as effective hedging instruments.At initial recognition if any of the following conditions are met the Group may designate a financial liability as
measured at fair value through profit or loss: (1) the designation can eliminate or significantly reduce accounting
mismatches; (2) under the Group's formally documented risk management or investment strategy portfolios of financial
liabilities or combined portfolios of financial assets and liabilities are managed and evaluated on a fair value basis and
this is reported internally to key officers; or (3) it is part of an eligible hybrid contract containing an embedded
derivative.Financial liabilities held for trading are subsequently measured at fair value with any gains or losses arising from fair
value changes along with dividends or interest expenses related to these liabilities recognized in profit or loss.- 29 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification recognition and measurement of financial liabilities - continued
11.4.1.1 Financial liabilities measured by fair value through the current profit or loss - continued
For a financial liability designated as measured at fair value through profit or loss the portion of the fair value change
attributable to the Group's own credit risk is recognized in other comprehensive income while other changes in fair
value are recognized in profit or loss. When the financial liability is derecognized the accumulated fair value change
attributable to changes in the Group's own credit risk that was previously recorded in other comprehensive income is
transferred to retained earnings. Any dividends or interest expenses related to such financial liabilities are recognized in
profit or loss. If treating the effect of changes in the liability's own credit risk in this manner creates or enlarges an
accounting mismatch in profit or loss the Group recognizes all gains or losses on the liability (including those related to
changes in its own credit risk) in profit or loss.
11.4.1.2 Other financial liabilities
Except for financial liabilities arising from the transfer of financial assets that do not meet derecognition criteria or
where the Group continues to be involved in transferred financial assets other financial liabilities are classified as
financial liabilities measured at amortized cost. They are subsequently measured at amortized cost and any gains or
losses from derecognition or amortization are recognized in profit or loss.If the Group modifies or renegotiates a contract with a counterparty and it does not result in the derecognition of a
financial liability subsequently measured at amortized cost but leads to changes in the contractual cash flows the Group
recalculates the book value of the financial liability and recognizes any related gain or loss in profit or loss. For
recalculated book value the Group shall determine it by discounting the renegotiated or modified contractual cash flows
at the original effective interest rate of the financial liability. For any costs or fees incurred as a result of modifying or
renegotiating the contract the Group shall adjust the book value of the modified financial liability and amortize them
over the remaining term thereof.
11.4.2 Derecognition of financial liabilities
If the present obligation of a financial liability is fully or partially discharged the liability (or the discharged portion) is
derecognized. If the Group (as borrower) signs an agreement with a lender to replace the original financial liability with
a new one and the terms of the new liability differ substantially from those of the original liability the Group
derecognizes the original liability and recognizes the new one.When a financial liability is fully or partially derecognized the difference between the book value of the derecognized
portion and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) is
recognized in profit or loss for the current period.- 30 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.3 Equity instruments
An equity instrument is a contract that evidences a residual interest in the Group's assets after deducting all liabilities.The Group treats the issuance (including refinancing) repurchase sale or cancellation of its equity instruments as
changes in equity. The Group does not recognize fair value changes in equity instruments. Transaction costs directly
attributable to equity transactions are deducted from equity.The Group's distributions made to holders of equity instruments are treated as profit distribution and any issued stock
dividends do not affect the total shareholders' equity.
11.5 Derivatives
Derivatives including forward foreign exchange contracts are initially measured at fair value on the contract date and
subsequently measured at fair value.
11.6 Offsetting financial assets and financial liabilities
When the Group has a legal right to offset recognized financial assets and liabilities and that right is currently
enforceable and the Group intends to settle on a net basis or to realize the asset and settle the liability simultaneously
the financial assets and liabilities are presented on the balance sheet at the net amount. Otherwise financial assets and
financial liabilities are presented separately in the balance sheet without offset.
12. Notes receivable
12.1 Method for determining expected credit losses on notes receivable and the related accounting treatments
For notes receivable with significantly increased credit risk such as those past due and not accepted or where there is
clear evidence that the acceptor is likely unable to fulfill its acceptance obligation the Group evaluates credit losses on
an individual basis. Other notes receivable are evaluated based on their credit risk characteristics as a group.Any increase or reversal of the provision for expected credit losses on notes receivable is recognized as a credit loss or
gain in profit or loss.
12.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination
Apart from those notes receivable whose credit losses are determined on an individual basis the Group classifies the
remaining notes receivable into different groups based on shared credit risk characteristics:
Combination category Determination basis
Combination 1 Bank acceptance bills
Combination 2 Commercial acceptance bills
- 31 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
13. Accounts receivable
13.1 Method for determining expected credit losses on accounts receivable and the related accounting treatments
The Group uses an impairment matrix at the group level to determine expected credit losses for accounts receivable. Any
increase or reversal of the provision for expected credit losses of accounts receivable is recognized as a credit loss or
gain in profit or loss.
13.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination.The Group classifies accounts receivable into Combination 1 and Combination 2 based on the credit risk characteristics
of counterparties under different business segments. Combination 1 refers to accounts receivable arising from the
polarizer business revenue where provisions for credit losses are made based on overdue aging relative to the credit
term. Combination 2 refers to accounts receivable arising from property leasing and other business revenue where
provisions for credit losses are made based on natural aging.
13.3 Method for calculating aging when determining credit risk characteristic combination
The Group uses both the natural aging of accounts receivable and the overdue aging relative to the credit term as credit
risk characteristics applying an impairment matrix to determine expected credit losses. Natural aging is calculated
starting from the date of initial recognition of the accounts receivable while overdue aging begins once the natural aging
exceeds the credit term granted to the customer. If the terms and conditions of an accounts receivable are modified but
do not lead to derecognition the aging continues to accumulate.
13.4 Criteria for individual assessment of provision for credit losses
The Group individually determines credit losses for accounts receivable where there is evidence of a significant increase
in credit risk.
14. Receivables financing
14.1 Method for determining expected credit losses on receivables financing and the related accounting treatments
The Group determines credit losses for receivables financing on an individual-asset basis. The Group recognizes the
provision for credit losses for receivables financing in other comprehensive income and records any credit loss or gain in
profit or loss without reducing the book value presented in the balance sheet.
14.2 Criteria for individual assessment of provision for credit losses
Based on the credit status of the accepting bank for bank acceptance bills the Group individually assesses and
determines credit losses for receivables financing.- 32 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
15. Other receivables
15.1 Method for determining expected credit losses on other receivables and the related accounting treatments
The Group determines credit losses for other receivables on a group basis. Any increase or reversal of the provision for
expected credit losses on other receivables is recognized as a credit loss or gain in profit or loss.
15.2 Combination categories and basis for determining provision for credit losses according to credit risk characteristic
combination
The Group divides other receivables into different combinations based on common credit risk characteristics. Common
credit risk characteristics used by the Group include initial recognition date remaining contract term and length of
overdue period.
15.3 Method for calculating aging when determining credit risk characteristic combination
The aging is calculated from the date of initial recognition. If the terms and conditions of other receivables are modified
but do not lead to derecognition the aging continues to accumulate.
16. Inventories
16.1 Types of inventories methods of costing for issuance inventory system and methods for amortizing low-value
consumables and packaging materials
16.1.1 Types of inventories
The Group's inventories mainly include raw materials work in progress finished products and materials processed on
consignment. Inventories are initially measured at cost which includes purchase costs processing costs and other
expenditures incurred to bring the inventories to their current location and condition.
16.1.2 Method of costing for issued inventories
When inventories are issued the actual cost is determined using the weighted average method.
16.1.3 Inventory system
The Group uses a perpetual inventory system.
16.1.4 Amortization methods for low-value consumables and packaging materials
Low-value consumables and packaging materials are amortized using the straight-line method or are written off in full at
once.- 33 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
16. Inventories - continued
16.2 Criteria for recognizing and methods for making provision for inventory depreciation
On the balance sheet date inventories are measured at the lower of cost and net realizable value. If net realizable value is
lower than cost a provision for inventory depreciation is made.Net realizable value is the estimated selling price of inventories in the ordinary course of business less the estimated
costs to complete the estimated selling and distribution expenses and related taxes. When determining the net realizable
value of inventories the Group uses conclusive evidence while considering the purpose of holding the inventories and
the impact of events after the balance sheet date.After the provisions for the inventory depreciation are made the factors causing any write-down of inventory value have
disappeared leading to the net realizable values of inventories higher than its book value the amount of write-down
shall be resumed and be reversed from the original provision for inventory devaluation with the reversal being included
in current profit or loss.Generally provisions for inventory depreciation are made on an item-by-item basis.
17. Long-term equity investments
17.1 Criteria for determining common control and significant influence
Control means that an investor has power over the investee derives variable returns by participating in the investee's
relevant activities and can use that power to affect the amount of returns. Common control refers to shared control over
an arrangement under relevant agreements where decisions about the arrangement's relevant activities require the
unanimous consent of the parties sharing the right of control. Significant influence refers to the power to participate in
decisions on an investee's financial and operating policies but not to control or commonly control the formation of those
policies. When determining whether the investor can exercise control or significant influence over the investee the
potential voting rights arising from convertible corporate bonds or exercisable warrants currently held by the investor or
other parties are taken into account.
17.2 Determination of initial investment cost
For a long-term equity investment acquired in a business combination under common control the initial investment cost
is determined on the combination date based on the share of the book value of the acquiree's owners' equity in the
ultimate controller's consolidated financial statements. Any difference between the initial investment cost of the long-
term equity investment and the book value of the cash paid non-cash assets transferred or liabilities assumed is adjusted
against capital reserve. If the capital reserve is insufficient the difference is adjusted against retained earnings. Where
equity securities are issued as consideration for the combination on the combination date the initial investment cost of
the long-term equity investment is determined based on the share of the book value of the acquiree's owners' equity in
the ultimate controller's consolidated financial statements. The total par value of the issued shares is recognized as share
capital and any difference between the initial investment cost and the total par value of the shares issued is adjusted
against capital reserve. If the capital reserve is insufficient the difference is adjusted against retained earnings.- 34 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
17. Long-term equity investments - continued
17.2 Determination of initial investment cost - continued
For a long-term equity investment acquired in a business combination not under common control on the acquisition date
the initial investment cost is determined based on the combination cost.Audit legal valuation consulting and other related G&A expenses incurred by the acquirer or purchaser for the
business combination are recognized in profit or loss when they occur.Long-term equity investments obtained through methods other than a business combination are initially measured at cost.Where an investor gains significant influence or common control but not control over an investee through additional
investment the cost of the long-term equity investment is the sum of the fair value of the previously held equity
investment (as determined in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments) and the new investment cost.
17.3 Subsequent measurement and recognition method of profit or loss
17.3.1 Long-term equity investments accounted for under the cost method
In the parent company's financial statements long-term equity investments in subsidiaries are measured using the cost
method. A subsidiary is an investee over which the Group can exercise control.Under the cost method long-term equity investments are measured at their initial investment cost. Any additional
investment or capital recovery adjusts the cost of the long-term equity investment. Current investment income is
recognized based on the amount of cash dividends or profits declared and distributed by the investee.
17.3.2 Long-term equity investments measured using the equity method
The Group applies the equity method to its investments in associates and joint ventures. An associate is an investee over
which the Group has significant influence and a joint venture is a joint venture arrangement under which the Group has
rights to the net assets of the arrangement.Under the equity method if the initial investment cost of the long-term equity investment exceeds the share of the fair
value of the investee's identifiable net assets at the time of investment the initial investment cost is not adjusted. If the
initial investment cost is less than the share of the fair value of the investee's identifiable net assets at the time of
investment the difference is recognized in current profit or loss and the cost of the long-term equity investment is
adjusted accordingly.- 35 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
17. Long-term equity investments - continued
17.3 Subsequent measurement and recognition method of profit or loss - continued
17.3.2 Long-term equity investments measured using the equity method - continued
When the equity method is adopted for accounting the Group based on its attributable share of the net profit or loss and
other comprehensive income realized by the investee respectively recognize the investment income and other
comprehensive income and simultaneously adjust the book value of the long-term equity investment. COOEC shall
calculate the shares according to profits or cash dividends declared by the investee and correspondingly reduce the book
value of long-term equity investments; As to any change in owners' equity of the investee other than net profit or loss
other comprehensive income and profit distribution the Group shall adjust the book value of the long-term equity
investment and include such change in capital reserves. When recoginzing the attributable share of net profit or loss of
the investee the Group shall based on the fair value of identifiable net asset of the investee when it obtains the
investmentrecognize the net profits of the investee after adjustment. If accounting policies and accounting periods
adopted by the investee are inconsistent with those of the Company the financial statements of the investee shall be
adjusted according to the accounting policies and accounting periods of the Company and investment income and other
comprehensive income etc. shall be recognized on such basis. For transactions between the Group and associates and
joint ventures if the invested or sold assets do not constitute business the unrealized profit or loss from internal
transactions will be offset at the part attributable to the Group and the investment profit or loss will be recognized on that
basis However the unrealized losses from internal transactions between the Group and any investee shall not be offset if
they belong to the losses from the impairment of the transferred assets.When recognizing the net losses occurred in the investee that shall be shared the reduction value of book value of long-
term equity investments and other long-term equities that constitute net investments in the investee will be the limit until
it becomes zero. In addition if the Group has the obligation to assume extra-amount losses for the investee the
estimated liabilities are recognized according to the estimated obligations and included in the current investment losses.Where the investee realizes net profits in the subsequent period the Group shall restore the income shared after making
up for unrecognized losses undertaken by such income.
17.4 Disposal of long-term equity investments
When a long-term equity investment is disposed of the difference between its book value and the actual proceeds is
recognized in current profit or loss. If a long-term equity investment has been accounted for using the equity method and
the remaining equity after disposal is still accounted for using the equity method any other comprehensive income
previously recognized under the equity method is treated on the same basis as if the investee had directly disposed of the
related assets or liabilities and is transferred proportionately. Any other changes in owners' equity of the investee other
than net profit or loss other comprehensive income and profit distribution which were previously recognized are
transferred proportionately to the current profit or loss. If a long-term equity investment is accounted for using the cost
method and the remaining equity after disposal continues to be accounted for using the cost method any other
comprehensive income recognized before the Group gained control under either the equity method or the accounting
standards for recognizing and measuring financial instruments is treated on the same basis as if the investee had directly
disposed of the related assets or liabilities and is transferred proportionately. Other changes in owners' equity other than
net profit or loss other comprehensive income and profit distribution in net asset of the investee accounted for and
recognized by using the equity method shall be carried forward to the current profit or loss.- 36 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
17. Long-term equity investments - continued
17.4 Disposal of long-term equity investments - continued
Where the Group loses the control over the investee due to the disposal of part of the equity investments when it
prepares separate financial statements the remaining equity after disposal that can commonly control or have significant
influence on the investee will be measured under the equity method and the remaining equity shall be deemed to have
been adjusted under the equity method on acquisition. If the remaining equity after disposal can not exercise common
control or significant influence on the investee such equity will be changed to be accounted for according to recognition
and measurement standards of financial instruments and the difference between fair value and book value on the date of
loss of the control shall be included in the current profit or loss. For other comprehensive income recognized by using
the equity method or financial instruments recognition and measurement standards before the Group obtains the control
over the investee accounting treatment shall be made on the same basis as that for direct disposal of relevant assets or
liabilities by the investee when the Group loses the control over the investee. Other changes in owners' equity other than
net profit or loss other comprehensive income and profit distribution in net asset of the investee recognized by using the
equity methodshall be carried forward to the current profit or loss when the control over the investee is lost. Where the
remaining equities after disposal are accounted for under the equity method the other comprehensive income and other
owners' equity shall be carried forward in proportion. If the remaining equity after disposal is changed to be accounted
for according to the recognition and measurement standards of the financial instruments the other comprehensive
income and other owner's equity shall be fully carried forward.In case the common control or significant influence over the investee is lost for disposing part of equity investments the
remaining equity will be changed to be accounted for according to the recognition and measurement principles of
financial instruments. The difference between the fair value and the book value on the date of the loss of common
control or significant influence shall be included in the current profit or loss. Any other comprehensive income
previously recognized under the equity method for the original equity investment is accounted for on the same basis as if
the investee had directly disposed of related assets or liabilities once the equity method ceases to apply. All other
changes in owners' equity recognized due to factors other than net profit or loss other comprehensive income and profit
distribution of the investee are transferred in full to current investment income when the equity method is no longer
applied.Where the Group disposes of equity investments in subsidiaries through multiple transactions and by stages until loss of
control if the above transactions belong to a package of transactions accounting treatment shall be made on the
transactions as a transaction to dispose equity investments of subsidiaries and lose the control. The difference between
each disposal cost and the book value of long-term equity investments corresponding to disposed equities before the loss
of control shall be firstly recognized as other comprehensive income and then transferred into the current profit or loss at
the loss of control.
18. Investment properties
Investment property refers to property held to earn rentals or for capital appreciation or both and includes leased land
use rights and leased buildings.Investment property is initially measured at cost. Subsequent expenses related to the investment property if the
economic benefits related to the asset are likely to flow in and the cost can be measured reliably shall be included in the
cost of the investment property. Other subsequent expenses shall be included in the current profit or loss when incurred.- 37 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
18. Investment properties - continued
The Group uses the cost model for subsequent measurement of investment property and provides for depreciation on a
straight-line basis over its service life. The depreciation method useful life estimated residual value and annual
depreciation rates for each category of investment property are as follows:
Type Depreciation method Depreciation life Residual value rate Annual depreciation(years) (%) rate (%)
Houses and buildings Straight-line method 10-40 0.00-4.00 2.40-10.00
When an investment property is being disposed of or permanently withdraws from use without any economic benefits
expected from the disposal the investment property shall be derecognized.The difference between the disposal proceeds of an investment property (through sale transfer retirement or damage)
and its book value net of related taxes and fees is recognized in current profit or loss.
19. Fixed assets
19.1 Recognition conditions
Fixed assets refer to tangible assets held for the purpose of producing goods providing services renting or operating
management with a service life exceeding one fiscal year. Fixed assets will only be recognized when the economic
benefits associated with such assets are likely to flow into the Group and the cost can be measured reliably. A fixed asset
is initially measured at cost.For the subsequent expenses related to the fixed assets if the economic benefits related to the fixed assets are likely to
flow in and the cost can be measured reliably they shall be included in the cost of the fixed assets and the book value of
the replaced part shall be derecognized Other subsequent expenses shall be included into the current profit or loss when
incurred.
19.2 Depreciation method
From the month following the date a fixed asset is in working condition for intended use the Group depreciates the asset
on a straight-line basis over its service life. The depreciation method service year estimated residual value and annual
depreciation rates for each category of fixed assets are as follows:
Type Depreciation method Depreciation life Residual value rate Annual depreciation(years) (%) rate (%)
Buildings and constructions Straight-line method 10-40 0.00-4.00 2.40-10.00
Machinery equipment Straight-line method 10-14 4.00 6.86-9.60
Transportation equipment Straight-line method 8 4.00 12.00
Electronic equipment and
others Straight-line method 5 4.00 19.20
Estimated net residual value refers to the amount obtained by the Group from the disposal of the fixed assets at present
after deducting the estimated disposal expenses assuming that the estimated service life of the fixed asset has expired
and the fixed asset is in the expected state at the end of its service life.- 38 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
19. Fixed assets - continued
19.3 Other explanations
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through use or
disposal the fixed assets shall be derecognized. The difference of the revenue from disposal of fixed assets such as sales
transfer retirement or damage deducting their book value and related taxes shall be included into the current profit or
loss.The Group will review service life estimated net residual value and depreciation methods of the fixed assets at the end
of each year. Changes if any shall be handled as changes in accounting estimates.
20. Construction in progress
The construction in progress is measured at actual cost which includes various project expenditures incurred during the
construction period capitalized borrowing costs before the project reaches working condition for intended use and other
related costs. No depreciation is made for construction in progress.The construction in progress shall be carried forward to the fixed assets after it reaches the working condition for
intended use. The criteria and timing for the conversion of various types of construction in progress into fixed assets are
as follows:
Type Criteria for conversion to fixed assets Time point of conversioninto fixed assets
The machinery equipment shall be carried forward to the fixed
assets when it has been accepted and the following conditions are
Installation ofmet:
machinery (1) The machinery equipment and its supporting facilities have beenReach working condition for
equipment installed; intended use(2) After commissioning the machinery equipment can maintain
normal and stable operation or produce qualified products for a
period of time.
21. Borrowing costs
The capitalization of the borrowing costs that can be directly attributable to the acquisition construction or production of
assets that meet the capitalization conditions will start when the asset expenditure has incurred the borrowing costs have
incurred and the acquisition construction or production activities necessary for the asset to reach the intended usable or
salable state have begun; The capitalization shall be ceased when the acquired and constructed or produced assets
eligible for capitalization have reached their working condition for intended use or sales condition. The remaining
borrowing costs are recognized as expenses on occurrence.- 39 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
22. Intangible assets
22.1 Service life and its basis for determination estimate amortization method or review procedure
Intangible assets include land use right software and patent rights etc.The intangible assets shall be initially measured at the costs. For intangible assets with limited service life the original
value shall be evenly amortized by straight-line method within the expected service life from the time when they are
available for use. The intangible assets with uncertain service life shall not be amortized. The amortization method
service life and residual value rate of various intangible assets are as follows:
Type Amortizationmethod Service life (year) and basis of determination
Residual value
rate (%)
Land use rights Straight-line 50 (Determine the service life based on the statutory servicemethod life) -
Software Straight-line 5 (Determine the service life based on the period expected tomethod bring economic benefits) -
Patent right Straight-line 15 (Determine the service life based on the period expectedmethod to bring economic benefits) -
At the end of the period the service life and amortization method of intangible assets with limited service life shall be
reviewed and adjusted if necessary.
22.2 The collection scope and related accounting treatments for research expenditures
The expenditures in research phase will be included in current profit or loss on occurrence.Expenditures in the development stage will be recognized as intangible assets only when the following conditions are
simultaneously satisfied and included in current profit or loss if the following conditions are not satisfied:
(1) It is technically feasible to complete the intangible assets so that it can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
(3) The manner in which an intangible asset generates economic benefits includes the ability to prove that there is a
market for the products produced through the use of this intangible asset or a market for the intangible asset itself. In the
case that the intangible asset will be used internally its usefulness shall be proven.
(4) With the support of sufficient technology financial resources and other resources it is able to complete the
development of the intangible assets and it is able to use or sell the intangible assets;
(5) The expenditures attributable to the intangible assets in the development stage can be measured reliably.
Where the research expenditures and the development expenditures are indistinguishable the COOEC shall include
research expenditures and development expenditures incurred in current profit or loss. The cost of the intangible assets
formed by internal development activities only includes the total expenditure incurred from the time when the
capitalization conditions are met to the time when the intangible assets reach the intended use. The expenses recognized
in profit or loss before meeting the capitalization conditions during the development for the same intangible asset will
not be adjusted.The collection scope of R&D expenditures includes the wages salaries and welfare expenses of the personnel directly
engaged in R&D activities and the direct R&D activities
The depreciation cost of materials fuel and power expenses instruments and equipment for R&D activities etc.- 40 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
23. Impairment of long-term assets
On each balance sheet date the Group checks whether there is any indication that long-term equity investments
investment properties measured by the cost model fixed assets construction in progress right-of-use assets and
intangible assets with a definite service life may have impairment. If there are indications of impairment of such assets
the recoverable amount shall be estimated. Intangible assets with indefinite service life and intangible assets that have
not yet reached a usable state are subject to impairment testing every year regardless of whether there are indications of
impairment.The recoverable amount of the estimated asset is based on a single asset. If it is difficult to estimate the recoverable
amount of a single asset the recoverable amount of the asset group shall be determined on the basis of the asset group to
which the asset belongs. The recoverable amount is the higher of the net amount obtained by deducting the disposal
expenses from the fair value of an asset or an asset group and the present value of its expected future cash flows.If the recoverable amount of the asset is lower than its book value the provision for asset impairment shall be made at
the difference and included in the current profit or loss.The goodwill shall be tested for impairment at least at the end of each year. The impairment test of goodwill shall be
carried out in combination with the asset group or combination of asset groups related to it. That is from the acquisition
date the book value of goodwill shall be allocated using a reasonable method to the asset group or portfolio of asset
groups that benefit from the synergies of the business combination. If the recoverable amount of the asset group or group
of asset groups including the allocated goodwill is lower than its book value the corresponding impairment losses shall
be recognized. Amount of impairment losses shall be firstly used to deduct the book value of goodwill allocated to the
asset group or portfolio of asset groups and then deduct book value of other assets according to the proportion of the
book values of other assets (except for goodwill) in the asset group or portfolio of asset groups.The above losses from assets impairment will not be reversed in subsequent accounting periods once recognized.
24. Long-term deferred expenses
Long-term deferred expenses refer to the expenses which have been already incurred but will be borne in the current
period and in the future with an amortization period of over 1 year. Long-term deferred expenses are amortized evenly
over the expected benefit period.
25. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer goods or services to customers for consideration
received or receivable from customers. Contract assets and contract liabilities under the same contract are presented by
their net amounts.
26. Employee compensation
26.1 Accounting treatments for short-term compensation
During the accounting period when employees provide services for the Group the Group recognizes the short-term
compensation actually incurred as liabilities and includes it in the current profit or loss or related asset costs. The
employee welfare expenses incurred by the Group shall be included in the current profit or loss or related asset costs
according to the actual amount incurred. If the employee benefits are non-monetary benefits they shall be measured at
fair value.- 41 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
26. Employee employee compensation - continued
26.1 Accounting treatments for short-term compensation - continued
For the medical insurance premiums work-related injury insurance premiums maternity insurance premiums and other
social insurance premiums and housing provident funds paid by the Group for employees as well as the labor union
funds and employee education expenses withdrawn by the Group in accordance with the provisions the corresponding
employee compensation amount shall be calculated and determined according to the prescribed accrual basis and accrual
ratio during the accounting period when employees provide services for the Group and the corresponding liabilities
shall be recognized and included in the current profit or loss or related asset costs.
26.2 Accounting treatments for post-employment benefits
Post-employment benefits are all defined contribution plans.During the accounting period when employees provide services for the Group the Group recognizes the amount payable
calculated according to the defined contribution plans as a liability and includes it in the current profit or loss or related
asset costs.
26.3 Accounting treatments for dismissal benefits
When the Group provides dismissal benefits to employees the employee compensation liability arising from the
dismissal benefits shall be recognized at the earlier of the following dates and included in the current profit or loss: when
the Group cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relationship plan
or the layoff proposal; When the Group recognizes the costs or expenses related to the restructuring involving the
payment of dismissal benefits.
27. Estimated liabilities
When the obligation related to the contingency such as product quality guarantee is a current obligation of the Group
and the performance of such obligation is likely to result in the outflow of economic benefits and the amount of such
obligation can be measured reliably it is recognized as estimated liabilities.On the balance sheet date by considering the risks uncertainty and time value of money and other factors related to
contingency the estimated liabilities will be measured according to the best estimate of the required expenditures for
performace of relevant present obligation. If the time value of money is significant the best estimate shall be determined
by the amount discounted by the estimated future cash flows.
28. Revenue
28.1 Accounting policies adopted for revenue recognition and measurement disclosed by business type
When the Group has fulfilled its performance obligations under the contract that is when the customer obtains right of
control of the relevant goods or services the revenue is recognized based on the transaction prices allocated to the
specific performance obligation. Performance obligations refer to the contractual commitments in which the Group
transfers clearly distinguishable goods or services to the customers.- 42 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
28. Revenue - continued
28.1 Disclosure of accounting policies for revenue recognition and measurement by business type - continued
The Group evaluates the contract on the contract commencement date identifies each individual performance obligation
contained in the contract and determines whether each individual performance obligation is performed within a certain
period of time or at a certain point in time. If one of the following conditions is met it is a performance obligation
performed within a certain period of time and the Group recognizes revenue within a certain period of time according to
the performance progress: (1) the customer obtains and consumes the economic benefits brought by the Group at the
same time as the Group performs the contract; (2) The customer is able to control the goods under construction in the
course of the Group's performance; (3) The goods produced during the performance of the Group have irreplaceable uses
and the Group has the right to receive payment for the performance accumulated to date throughout the contract period.Otherwise the Group recognizes the revenue at the point when the customer obtains the right of control of the relevant
goods or services.For goods sold to customers the Group recognizes revenue when the right of control of the goods is transferred that is
when the goods are delivered to the designated place of the other party and signed by the other party. For property
service the Group recognizes revenue in the course of providing property service.Transaction prices refer to the amount of consideration that the Group is expected to be entitled to receive as a result of
the transfer of goods or services to customers but does not include the amount received on behalf of third parties and the
amount expected to be returned to customers by the Group. When determining the transaction prices the Group
considers the impact of variable consideration significant financing components in the contract non-cash consideration
consideration payable to customers and other factors.If the contract contains two or more performance obligations the Group shall on the commencement date of the
contract allocate the transaction prices to each individual performance obligation according to the relative ratio of the
individual selling price of the goods or services promised by each individual performance obligation. However if there
is conclusive evidence that the contractual discount or variable consideration is only related to one or more (but not all)
performance obligations in the contract the Group shall allocate the contractual discount or variable consideration to the
relevant one or more performance obligations. Individual selling price refers to the price at which the Group sells goods
or services to customers separately. If the individual selling price cannot be directly observed the Group will
comprehensively consider all the information that can be reasonably obtained and estimate the individual selling price
by maximizing the use of observable input value.For sales with sales return clauses the Group recognizes revenue at the amount of consideration expected to be entitled
to receive due to the transfer of goods to the customer (i.e. excluding the amount expected to be returned due to sales
return) when the customer obtains the relevant control over goods and recognizes liabilities at the amount expected to
be returned due to sales return; At the same time the balance of the book value of the expected goods to be returned at
the time of transfer after deducting the expected cost of recovering the goods (including the impairment of the value of
the returned goods) is recognized as an asset. The net amount after deducting the cost of the above asset will be
transferred as cost based on the book value of the transferred goods.For sales with quality assurance clauses if the quality assurance provides a separate service in addition to assuring the
customer that the goods or services sold meet the established standards the quality assurance constitutes a single
performance obligation. Otherwise the Group shall conduct accounting treatment for the quality assurance liability in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.The Group determines whether it is the principal or the agent when engaging in transactions based on whether it has the
right of control over the goods or services before transferring them to the customer. If the Group can control the goods
or services before transferring them to the customer the Group is the main responsible person and recognizes the
revenue according to the total consideration received or receivable; Otherwise the Group is an agent and recognizes
revenue based on the expected commissions or service fee it is entitled to receive. This amount is determined by
subtracting the price payable to other related parties from the total consideration received or receivable.- 43 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
28. Revenue - continued
28.1 Disclosure of accounting policies for revenue recognition and measurement by business type - continued
If the Group receives payment in advance from customers for sales of goods or services the payment is first recognized
as a liability and then transferred to revenue when the relevant performance obligations are fulfilled. When the Group's
advances from customers do not need to be returned and the customer may waive all or part of its contractual rights the
Group expects to be entitled to the amount related to the contractual rights waived by the customer and recognizes the
above amount as revenue in ratio according to the mode of the customer's exercise of contractual rights; Otherwise the
Group will only transfer the relevant balance of the above-mentioned liabilities to revenue when it is highly unlikely that
the customer will request the fulfillment of the remaining performance obligations.
29. Government grants
Government grants refer to the monetary assets and non-monetary assets obtained by the Group from the government for
free. Government grants are recognized when they can meet the conditions attached to government grants and can be
received.The government grants considered as monetary assets are measured at the amount received or receivable.
29.1 Judgment basis and accounting treatments for government grants related to assets
The subsidies fro production line and equipment in the Group's government grants can form long-term assets so such
government grants are asset-related government grants.Government grants related to assets are recognized as deferred income and included in the current profit or loss by
stages according to the straight-line method within the service life of the relevant assets.
29.2 Judgment basis and accounting treatments for government grants related to income
The industry development support funds and enterprise development support funds in the Group's government grants
cannot form long-term assets so such government grants are income-related government grants.Income-related government grants used to compensate for relevant costs and losses in subsequent periods are recognized
as deferred income and included in the current profit or loss in the period when the relevant costs or expenses are
recognized; If it is used to compensate the relevant costs and losses incurred it shall be directly included in the current
profit or loss.Government grants related to the daily activities of the Group are included in other income according to the essence of
economic business. Government grants unrelated to the daily activities of the Group are included in the non-operating
revenue.When the recognized government grants need to be returned if there is relevant deferred income balance the book
balance of relevant deferred income shall be offset and the excess shall be included in the current profit or loss; If there
is no relevant deferred income it shall be directly included in the current profit or loss.- 44 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
30. Lease
Leases refers to a contract in which the lessor transfers the right of use of the asset to the lessee for consideration within
a certain period of time.At the commencement date of the contract the Group assesses whether the contract is a lease contract or contains a lease.Unless the terms and conditions of the contract change the Group does not reassess whether the contract is a lease
contract or contains a lease.
30.1 The Group as a lessee
30.1.1 Spin-off of the lease
When a contract contains one or more lease and non-lease parts the Group will split the individual lease and non-lease
parts and allocate the contract consideration according to the relative ratio of the sum of the individual price of each
lease part and the individual price of the non-lease part.
30.1.2 Right-of-use assets
Except for short-term leases the Group recognizes the right-of-use assets of the lease on the lease commencement date.The lease commencement date refers to the starting date when the lessor provides the leased assets for use by the Group.Right-of-use assets are initially measured at cost. The cost includes:
The initial measurement amount of the lease liabilities;
The lease payments made on or before the lease commencement date or the relevant amount after deducting the lease
incentive already enjoyed if any;
Initial direct costs incurred by the Group;
The costs to be incurred to the Group for demolishing and removing leased assets restoring the site where the leased
assets are located or restoring the leased assets to the state agreed in the lease terms.The Group depreciates right right-of-use assets with reference to the depreciation provisions of Accounting Standards
for Business Enterprises No. 4 - Fixed Assets. If the Group can reasonably determine that the ownership of leased assets
will be obtained at the expiration of the lease term the right-of-use assets shall be depreciated within the remaining
service life of the leased assets. If it is not reasonably certain that ownership of leased assets will be obtained at the
expiration of the lease term the depreciation shall be accrued during the shorter of the lease term and remaining service
life leased assets.The Group determines whether the right-of-use assets are impairment in accordance with the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment and performs accounting treatment on the identified impairment losses.
30.1.3 Lease liabilities
Except for short-term leases the Group makes initial measurement of the lease liabilities on the lease commencement
date according to the present value of the lease payments that have not been paid on that date. When calculating the
present value of lease payments the Group uses the interest rate implicit in lease as the discount rate and if the interest
rate implicit in lease cannot be determined the incremental borrowing rate is used as the discount rate.- 45 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
30. Leases - continued
30.1 The Group as a lessee - continued
30.1.3 Lease liabilities - continued
Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the leased
assets during the lease term including:
Fixed payment (including substantial fixed payment) and the relevant amount after deducting the lease incentive if any;
Variable lease payments depending on index or ratio;
The Group reasonably determines the exercise price of purchase option to be exercised;
Lease term reflects the amount that needs to be paid if the Group exercises the option to termination of leases
termination of leases;
The amount expected to be paid based on the residual value of guarantee provided by the Group.After the lease commencement date the Group calculates the interest expenses of the lease liabilities for each period of
the lease term at a fixed cyclical interest rate and includes it in the current profit or loss or related asset costs.After the lease commencement date if any of the following circumstances occurs the Group shall remeasure the lease
liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced
to zero but the lease liabilities still needs to be further reduced the Group shall include the difference in the current
profit or loss:
If lease term changes or the valuation result of purchase option changes the Group remeasures lease liabilities based on
the present value of the changed lease payments and the revised discount rate;
If there is a change in the estimated amount payable of the residual value of guarantee or the index or ratio used to
determine lease payments the Group remeasures lease liabilities based on the changed lease payments and the present
value calculated using the original discount rate.
30.1.4 As the basis for judgment and accounting treatments for the simplified treatment of short-term leases by the
lessee
The Group chooses not to recognize right-of-use assets and lease liabilities for short-term leases of some plants and
some leased warehouses. Short-term lease refers to a lease that lasts for no more than 12 months and includes no
purchase options at the lease commencement date. The Group includes the lease payments of short-term leases in the
current profit or loss or related asset costs according to the straight-line method in each period of the lease term.
30.1.5 Lease modification
If the lease is modified and the following conditions are met at the same time the Group will account for the lease
modification as a separate lease:
* The lease modification expands the scope of the lease by adding one or more right of use of the leased assets;
* The increased consideration is equivalent to the individual price of the expanded part adjusted according to the
contract.- 46 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
30. Leases - continued
30.1 The Group as a lessee - continued
30.1.5 Lease modification - continued
If the lease modification is not accounted for as a separate lease on the effective date of the lease modification the
Group re-apportions the consideration of the modified contract re-determines the lease term and re-measures the lease
liabilities at the present value calculated according to the modified lease payments and the revised discount rate.If the lease modification results in a reduction in the scope of the lease or the lease term the Group shall reduce the book
value of the right-of-use assets accordingly and include the relevant gains or losses of partial or complete termination of
leases into the current profit or loss. If the lease liabilities are remeasured due to other lease modification the Group
shall adjust the book value of the right-of-use assets accordingly.
30.2 The Group as a lessor
30.2.1 Spin-off of the lease
If the contract contains both the lease and non-lease parts the Group shall allocate the contract consideration according
to the provisions of the revenue standards on the allocation of transaction prices and the basis of allocation shall be the
separate price of the lease part and the non-lease part.
30.2.2 Classification criteria and accounting treatments as a lessor
Leases that substantially transfer substantially all of the risks and rewards associated with the ownership of leased assets
are financing leases Leases other than financing lease are operating leases.
30.2.2.1 The Group records operating leases as a lessor
During each period of the lease term the Group recognizes the lease receipts of operating leases as rental income by
using the straight-line method. The initial direct costs incurred by the Group in connection with operating leases are
capitalized when incurred amortized on the same basis as rental income recognition during the lease term and included
in the current profit or loss in installments.The variable lease receipts related to operating leases acquired by the Group and not included in the lease receipts are
included in the current profit or loss when actually incurred.
30.2.3 Lease modification
If the operating lease is changed the Group will account for it as a new lease from the effective date of the change and
the advance or receivable lease receipts related to the lease before the change will be regarded as the receipt amount of
the new lease.- 47 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
31. Deferred tax assets and deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
31.1 Current income tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and prior periods are
measured at the expected income tax payable (or refundable) calculated in accordance with the tax law.
31.2 Deferred tax assets and deferred tax liabilities
For the difference between the book value of certain assets and liabilities and their tax bases and the temporary
differences arising from the difference between the book value and tax base of items that are not recognized as assets
and liabilities but whose tax bases can be determined in accordance with the tax law the balance sheet liability method
is adopted to recognize deferred tax assets and deferred tax liabilities.In general the relevant deferred income taxes are recognized for all temporary differences. However for deductible
temporary differences the Group recognizes the relevant deferred tax assets to the extent of the taxable income that is
likely to be obtained to offset the deductible temporary differences. In addition deferred tax assets or liabilities are not
recognized for temporary differences associated with the initial recognition of goodwill and with the initial recognition
of assets or liabilities arising from transactions that are neither business combinations nor affect accounting profit or
taxable income (or deductible losses) and do not result in equal taxable temporary differences and deductible temporary
differences.For deductible loss and tax credits that can be carried forward to subsequent years the corresponding deferred tax assets
arising therefrom are recognized to the extent that future taxable income will be probable to be available against
deductible losses and tax credits.The Group recognizes deferred tax liabilities arising from taxable temporary differences associated with subsidiaries
associates and investments in joint ventures unless the Group is able to control the timing of the reversal of the
temporary differences and it is probable that the temporary differences will not be reversed in the foreseeable future. For
deductible temporary differences related to subsidiaries associates and investments in joint ventures the Group
recognizes deferred tax assets only if it is probable that the temporary differences will reverse in the foreseeable future
and it is probable that taxable income will be available to offset the deductible temporary differences in the future.On the balance sheet date deferred tax assets and deferred tax liabilities should be measured at the applicable tax rate
during the period of expected recovery of the relevant assets or liquidation of the relevant assets according to the
provisions of tax laws.Except for the current income tax and deferred income taxes related to transactions and events directly included in other
comprehensive income or shareholders' equity which are included in other comprehensive income or shareholders'
equity and the book value of deferred income taxes arising from business combination to adjust goodwill the remaining
current income tax and deferred income tax expenses or income are included in the current profit or loss.On the balance sheet date the book value of the deferred tax assets shall be reviewed. If it is likely that sufficient taxable
income will not be available in the future to offset the benefits of the deferred tax assets the book value of the deferred
tax assets shall be written down. When it is likely to earn sufficient taxable income the written down amount is reversed.- 48 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(III) Significant accounting policies and accounting estimates - continued
31. Deferred tax assets/deferred tax liabilities - continued
31.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends to settle with net amount or acquire assets and pay
off liabilities simultaneously the Group reports the net amount of current income tax assets and current tax liabilities
after offsetting.When the Group has the legal right to settle current income tax assets and current income tax liabilities on a net basis
and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection
authority on the same taxpayer or on different taxpayers but in each important future period of reversal of deferred tax
assets and liabilities the involved taxpayer intends to settle current income tax assets and liabilities on a net basis or to
obtain assets and settle liabilities at the same time the deferred tax assets and deferred tax liabilities of the Group are
presented at the net amount after offset.
32. Changes in significant accounting policies and accounting estimates
32.1 Adjustments for changes in significant accounting policies
On October 25 2023 the Ministry of Finance issued the Accounting Standards for Business Enterprises - Interpretation
No. 17 (hereinafter referred to as "Interpretation No. 17"). Interpretation No. 17 standardizes the classification of current
liabilities and non-current liabilities and the accounting treatment of sale and leaseback transactions and will come into
effect on January 1 2024.On December 6 2024 the Ministry of Finance issued the Accounting Standards for Business Enterprises - Interpretation
No. 18" (hereinafter referred to as "Interpretation No. 18"). It regulates the subsequent measurement of investment
properties held as underlying items under the floating charge method and the accounting treatment of warranty-type
quality assurance that is not a single performance obligation. It will come into force from December 6 2024 allowing
enterprises to implement it ahead of the annual release.After assessment the Group believes that the adoption of the above provisions has no material impact on the Group's
financial statements.
32.2 Changes in accounting estimates
The Group has no significant changes in accounting estimates during the year.- 49 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024（IV） Taxation
1. Main tax types and tax rates
Tax type Tax basis Tax rate
The output tax for domestic sales is
Balance of output tax minus deductible input tax; calculated at 13% 9% 6% and 5% of the
Value-added tax Tax exemption offset and refund measures are sales amount according to relevant tax
applicable to the sales of export products regulations and the export product tax
rebate rate is 13%
Urban maintenance
and construction tax Turnover tax payable 7%
Education
surcharge Turnover tax payable 3%
Local education
surtax Turnover tax payable 2%
Corporate income
tax Taxable income 25%、20%、15%、8.25%
THE RESIDUAL VALUE AFTER
Property taxes DEDUCTING 30% FROM THE ORIGINAL 1.2%
VALUE OF THE PROPERTYAT ONCE
Notes to the taxpayers with different corporate income tax rates:
Name of taxpayer Income tax rate
The Company 25%
Shenzhen Shenfang Property Management Co. Ltd. 20% (Note 1)
Shenzhen MCENTURY Garment Co. Ltd. 20% (Note 1)
Shenzhen Lisi Industrial Development Co. Ltd. 20% (Note 1)
Shenzhen Shenfang Sungang Property Management Co. Ltd. 20% (Note 1)
Shenzhen Huaqiang Hotel Co. Ltd. 20% (Note 1)
SATO (Hong Kong) Limited 8.25% (Note 2)
Shenzhen SAPO Photoelectric Co. Ltd. (hereinafter referred to as
"SAPO Photoelectric") 15% (Note 3)
Note 1: See Note (IV) and 2(2) for details.Note 2: according to the Inland Revenue Ordinance of Hong Kong SATO (Hong Kong) Limited is subject to a two-tier
profits tax system. The first HKD 2 million of taxable profits shall taxed at a rate of 8.25% and the profits generated
thereafter shall be taxed at a rate of 16.5%.Note 3: See Note (IV) and 2(1) for details.
2. Tax incentives
(1) SAPO Photoelectric a subsidiary of the Company was jointly recognized as a high-tech enterprise in 2022 by
Shenzhen Science and Technology Innovation Commission Finance Bureau of Shenzhen Municipality and Shenzhen
Tax Service State Taxation Administration. The certification is valid for 3 years and the certificate number is
GR202244204504. Since SAPO Photoelectric was recognized as a high-tech enterprise it is eligible for the tax
incentives for high-tech enterprises for three years. After filing with the competent tax bureau SAPO Photoelectric has
paid corporate income tax at a tax rate of 15%.- 50 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(IV) Taxes - continued
2. Tax incentives - continued
(2) The Company's subsidiaries Shenzhen MCENTURY Garment Co. Ltd. Shenzhen Huaqiang Hotel Co. Ltd.
Shenzhen Lisi Industrial Development Co. Ltd. Shenzhen Shenfang Sungang Property Management Co. Ltd. and
Shenzhen Shenfang Property Management Co. Ltd. are qualified small low-profit enterprises. According to the
Announcement of the Ministry of Finance and the State Taxation Administration of Taxation on Further Implementing
Preferential Policies for Corporate Income Tax of Small and Micro Enterprises (No. 13 2022) and the Announcement of
the Ministry of Finance and the State Taxation Administration on Preferential Policies for Corporate Income Tax of
Small and Micro Enterprises and Individual Industrial and Commercial Households (No. 6 2023) the part of the annual
taxable income not exceeding RMB 3 million will be included in the taxable income after deducting 25% and corporate
income tax will be paid at a tax rate of 20%.
(3) According to the relevant provisions of the Notice of the Ministry of Finance the General Administration of
Customs and the State Taxation Administration on the Import Tax Policies for Supporting the Development of the New
Display Device Industry (CGS [2021] No. 19) SAPO Photoelectric a subsidiary of the Company meets the relevant
conditions and will enjoy the policy of exemption from import duties on relevant products from January 1 2021 to
December 31 2030.
(4) According to the Announcement on the Policy of Additional Value-Added Tax Deduction for Advanced
Manufacturing Enterprises (CZBSWZJGG [2023] No.43) issued by the Ministry of Finance and the State Taxation
Administration in September 2023 from January 1 2023 to December 31 2027 advanced manufacturing enterprises are
allowed to deduct the value-added tax payable by 5% of the deductible input tax for the current period. SAPO
Photoelectric a subsidiary of the Company meets the relevant conditions and enjoyed the policy of additional deduction
of value-added tax (VAT) in 2024.（V） Notes to financial statements items
1. Monetary funds
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Cash on hand: 4751.69 1710.40
RMB 4691.50 1651.50
HKD 60.19 58.90
Bank deposits (Note 1): 302111853.17 462967619.54
RMB 245621517.8 396264667.05
USD 40462152.89 62535102.56
JPY 15265963.38 3440280.17
HKD 762219.10 727569.76
Other monetary funds (Note 2): 38844838.96 9305118.06
RMB 10920461.06 9305118.06
JPY 27924377.90 -
Total 340961443.82 472274448.00
Including: total amount deposited abroad - -
- 51 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
1. Monetary funds - continued
Note 1: bank deposits include interest income from current deposits and 7-day notice deposits amounting to RMB
31765.51 (2023: RMB 1548872.61).
Note 2: as of December 31 2024 the Group's other monetary funds included RMB 3401500.00 (2023: RMB
3400000.00) of restricted funds due to account freezes and RMB 35443338.96 (2023: RMB 5905118.06) of
guarantee deposits for bills and letters of credit.
2. Financial assets held for trading
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Financial assets measured at fair value through current
profit or loss 731419904.42 821946114.68
Including: money funds and structured deposits 731419904.42 821946114.68
3. Notes receivable
(1) Classification of notes receivable
RMB
Category Balance as at the end of Balance as at the end ofthe current year the previous year
Bank acceptance bills 47305221.88 50963943.01
(2) As at December 31 2024 the Group has no pledged notes receivable.
(3) As of December 31 2024 notes receivable endorsed or discounted by the Group and not yet due on the balance
sheet date at the end of the period
RMB
Item Amount derecognized at the Amount not derecognized atend of the period the end of the period
Bank acceptance bill - 30291952.76
(4) Disclosure by provision method for bad debts
RMB
Balance as at the end of the current year Balance as at the end of the previous year
Book balance Provision for bad debts Book balance Provision for baddebts
Category Provisi
Ratio Book value
Provisi Book value
Amount (%) Amount
on
ratio Amount
Ratio
(%) Amount
on
ratio
(%)(%)
Provision for bad
debts accrued on an - - - - - - - - - -
individual basis
Provision for bad
debts made by 47305221.88 100.0 47305221.80 - - 8 50963943.01 100.00 - - 50963943.01portfolio
Including: bank 100.0 47305221.8
acceptance bills 47305221.88 0 - - 8 50963943.01 100.00 - - 50963943.01
Total 47305221.88 100.0 - 47305221.80 8 50963943.01 100.00 - 50963943.01
(5) In 2024 the Group has no actual write-off of notes receivable.
- 52 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
4. Accounts receivable
(1) Disclosure by aging
RMB
Aging Book balance at the end of Book balance at the end ofthe year the previous year
Within 1 year 888265598.53 848526236.04
1-2 years 368365.12 1640043.18
2 to 3 years - 618907.34
Over 3 years 13565696.79 12911211.29
Total 902199660.44 863696397.85
(2) Disclosure by provision method for bad debts
RMB
Balance as at the end of the current year
Category Book balance Provision for bad debts
Amount Ratio (%) Amount Provision ratio (%) Book value
Provision for bad debts accrued
on an individual basis 35622829.91 3.95 17870018.37 50.16 17752811.54
Provision for bad debts made
by portfolio 866576830.53 96.05 20597705.18 845979125.35
Including: portfolio 1 854782067.66 94.74 20338340.21 2.38 834443727.45
Combination 2 11794762.87 1.31 259364.97 2.20 11535397.90
Total 902199660.44 100.00 38467723.55 863731936.89
RMB
Balance as at the end of the previous year
Category Book balance Provision for bad debts
Amount Ratio (%) Amount Provision ratio (%) Book value
Provision for bad debts accrued
on an individual basis 71687951.26 8.30 27464002.48 38.31 44223948.78
Provision for bad debts made
by portfolio 792008446.59 91.70 16097561.42 775910885.17
Including: portfolio 1 779372185.30 90.24 15882600.54 2.04 763489584.76
Combination 2 12636261.29 1.46 214960.88 1.70 12421300.41
Total 863696397.85 100.00 43561563.90 820134833.95
As of December 31 2024 the Company has no significant accounts receivable with individual provision for bad debts.As of December 31 2024 the credit risk and provision for bad debts of accounts receivable of Portfolio 1 are as follows:
RMB
Balance as at the end of the current year
Type Expected average Book balance Provision for badloss rate (%) debts Book value
Within the credit period 2.11 796842757.97 16786953.04 780055804.93
1-30 days overdue 3.10 53503516.30 1656637.60 51846878.70
31-60 days overdue 26.63 3418979.10 910571.37 2508407.73
61-90 days overdue 96.70 989164.17 956528.08 32636.09
More than 90 days overdue
(with impairment) 100.00 27650.12 27650.12 -
Total 854782067.66 20338340.21 834443727.45
- 53 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
4. Accounts receivable - continued
(2) Disclosure by provision method for bad debts - continued
As of December 31 2024 the credit risk and provision for bad debts of accounts receivable of Portfolio 2 are as follows:
RMB
Balance as at the end of the current year
Aging Expected average Book balance Provision for badloss rate (%) debts Book value
Within 1 year 1.44 11460139.05 165377.59 11294761.46
1-2 years 10.00 267373.82 26737.38 240636.44
Over 3 years 100.00 67250.00 67250.00 -
Total 11794762.87 259364.97 11535397.90
As of December 31 2024 provision for bad debts is made based on the simplified expected credit losses model
RMB
Whole duration Whole duration
Provision for bad debts Expected credit losses Expected credit losses Total
(No credit loss) (With credit loss)
Balance at the beginning of
the year 27153548.62 16408015.28 43561563.90
Balance at the beginning of
the year
- Transfer to credit loss
incurred - - -
- Reversal of credit loss not
incurred - - -
Withdrawal in the current
year 8871275.71 102828.16 8974103.87
Reversal in the current year (11196138.79) (2871805.43) (14067944.22)
Charge-off in the current
year - - -
Write-off in the current year - - -
Other changes - - -
Balance as at the end of the
current year 24828685.54 13639038.01 38467723.55
(3) Provision for bad debts
RMB
Balance at the Changes in the current year Balance as at
Type beginning of Provision Recovery or Resale or write- Other changes the end of thethe year reversal off current year
Provision
for bad debts 43561563.90 8974103.87 (14067944.22) - - 38467723.55
There was no significant amount of provision for bad debts recovered or reversed this year.
(4) There are no accounts receivable with actual write-off this year.
- 54 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
4. Accounts receivable - continued
(5) Top 5 accounts receivable in terms of the ending balances by debtors
RMB
Proportion in accounts
Book balance at the end of receivable Provision for bad debtsEntity name the year Ratio of balance at the end Balance as at the end of the
of the year (%) current year
Customer 1 216148577.64 23.96 4753114.82
Customer 2 102082718.13 11.31 2184024.62
Customer 3 90645486.60 10.05 1855541.78
Customer 4 84618742.39 9.38 1841371.17
Customer 5 65531083.75 7.26 1350058.99
Total 559026608.51 61.96 11984111.38
5. Receivables financing
(1) Presentation of receivables financing by category
RMB
Item Balance as at the end of the Balance as at the end of thecurrent year previous year
Bank acceptance bills 6804603.68 22839459.13
The Group believes that the bank acceptance bills it holds are issued by banks with high credit ratings and carry no
significant credit risk; therefore no provision for bad debts has been made.
(2) As at December 31 2024 the Group has no pledged receivables financing.
(3) As of December 31 2024 receivables financing endorsed or discounted by the Group and not yet due on the
balance sheet date at the end of the period
RMB
Item Amount derecognized at the Amount not derecognized atend of the period the end of the period
Bank acceptance bills 34926518.99 -
(4) In 2024 the Group has no receivables financing with actual write-off.
- 55 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
6. Advances to suppliers
(1) Disclosure of advances to suppliers by aging
RMB
Aging Balance as at the end of the current year
Balance as at the end of the previous
year
Amount Ratio (%) Amount Ratio (%)
Within 1 year 7233035.70 88.46 16927119.84 86.81
1-2 years 873375.47 10.68 969677.39 4.97
2 to 3 years 8227.73 0.10 1603089.57 8.22
Over 3 years 62085.80 0.76 - -
Total 8176724.70 100.00 19499886.80 100.00
As of December 31 2024 the Group has no advances to suppliers with an aging of more than 1 year and an important
amount.
(2) Top 5 advances to suppliers in terms of the ending balances by prepayment objects
The total amount of the top five prepayments categorized by prepayment objects as of the end of the year was RMB
5657262.47 accounting for 69.19% of the ending balance of advances to suppliers.
7. Other receivables
(1) Disclosure by aging
RMB
Aging Balance as at the end of Balance as at the end ofthe current year the previous year
Within 1 year 2878553.22 1860613.92
1-2 years 227729.90 548779.55
2 to 3 years 37922.15 690301.34
Over 3 years 18436540.75 18115521.40
Total 21580746.02 21215216.21
Less: provision for bad debts 17984202.06 17994930.79
Book value 3596543.96 3220285.42
(2) Disclosure by nature of payment
RMB
Nature of payment Book balance at the
Book balance at the
end of the year end of the previousyear
Current accounts 15422685.97 15350589.97
Guarantee and deposits 2523551.88 2000722.80
Export tax rebate 709028.48 710026.13
Petty cash and employee borrowings 296058.95 577183.94
Others 2629420.74 2576693.37
Total 21580746.02 21215216.21
- 56 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
7. Other receivables - continued
(3) Provision for bad debts
As of December 31 2024 provision for bad debts is made based on general model of expected credit losses
RMB
Phase I Phase II Phase III
The entire expected The entire expected
Provision for bad debts Expected credit credit loss over the credit loss over thelosses over the next life of the life of the Total
12 months instruments instruments
(No credit loss) (With credit loss)
Balance at the beginning of the
year 73918.97 268296.26 17652715.56 17994930.79
Balance at the beginning of the
year 73918.97 268296.26 17652715.56 17994930.79
-Transfer to phase II (12183.55) 12183.55 - -
-Transfer to phase III - (187095.88) 187095.88 -
-Reversal to phase II - - - -
-Reversal to phase I - - - -
Withdrawal in the current year 85256.08 - - 85256.08
Reversal in the current year - (54177.15) (37685.24) (91862.39)
Charge-off in the current year - - - -
Write-off in the current year - - (4122.42) (4122.42)
Other changes - - - -
Balance as at the end of the
current year 146991.50 39206.78 17798003.78 17984202.06
As of December 31 2024 provision for bad debts shall be made according to the credit risk characteristic combination
RMB
Balance as at the end of the current year
Phase Expectedaverage loss rate Book balance Provision for
(%) bad debts
Book value
Provision for bad debts based on
credit risk characteristic
combination 83.33 21580746.02 17984202.06 3596543.96
Provision for other receivables
As of December 31 2024 the credit risk and provision for bad debts of other receivables are as follows:
RMB
Balance as at the end of the current year
Aging Expected average Book balance Provision for badloss rate (%) debts Book value
Within 1 year 5.11 2878553.22 146991.50 2731561.72
1-2 years 7.69 227729.90 17521.25 210208.65
2 to 3 years 57.18 37922.15 21685.53 16236.62
Over 3 years 96.54 18436540.75 17798003.78 638536.97
Total 21580746.02 17984202.06 3596543.96
- 57 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
7. Other receivables - continued
(4) Provision for bad debts
RMB
Balance at the Changes in the current year Balance as at
Type beginning of Provision Recovery or Resale or write- the end of thethe year reversal off Other changes current year
Provision for bad debts 17994930.79 85256.08 (91862.39) (4122.42) - 17984202.06
There is no provision for bad debts recovery or reversal of significant amount in the current year.
(5) There are no other receivables with actual write-off this year.
(6) Top five entities in terms of ending balance of other receivables by debtors
RMB
Provision for bad
Balance as at the debts
Other receivables end of the current Ratio in ending Nature of amount Aging Balance as at the
year balance of other end of the current
receivables (%) year
Top five of the ending
balance of the current 16287801.03 75.47 1年以内、3年以year 应收单位往来等 15242801.03上
Total other receivables
8. Inventories
(1) Classification of inventories
RMB
Balance as at the end of the current year Balance as at the end of the previous year
Item Provision for Provision forBook balance inventory Book value Book balance inventory Book value
depreciation depreciation
Raw materials 453134126.81 14875137.34 438258989.47 403031948.06 7506047.48 395525900.58
Products in
progress 335115507.53 66220022.55 268895484.98 309068674.96 64610590.25 244458084.71
Finished
products 121746047.85 40357658.59 81388389.26 137596740.37 43501540.31 94095200.06
Entrusted
processing 1710557.68 496720.51 1213837.17 2406793.65 93806.73 2312986.92
materials
Total 911706239.87 121949538.99 789756700.88 852104157.04 115711984.77 736392172.27
Note: as of December 31 2024 the book balance of the polarizer inventories was RMB 905482857.11 (December 31
2023: RMB 838447375.39) with a corresponding provision for inventory depreciation of RMB 115967084.94
(December 31 2023: RMB 107290039.96).
(2) Provision for inventory depreciation
RMB
Balance at the Increase in the current year Decrease in the current year Balance as at the
Item beginning of the Provision Others Reversal or Others end of the currentyear write-off year
Raw materials 7506047.48 10509078.42 - 3139988.56 - 14875137.34
Products in
progress 64610590.25 28883121.41 - 27273689.11 - 66220022.55
Finished
products 43501540.31 83743853.45 - 86887735.17 - 40357658.59
Entrusted
processing 93806.73 402913.78 - - - 496720.51
materials
Total 115711984.77 123538967.06 - 117301412.84 - 121949538.99
- 58 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
8. Inventories - continued
(2) Provision for inventory depreciation - continued
Specific basis for determining the net realizable value of inventories and the reasons for reversal or write-off of the
provision for inventory depreciation during the current year:
Reasons for reversing or
Item Specific basis for determining net realizable value writing off provision forinventory depreciation
this year
The net realizable value is determined by the
Raw materials goods in process and estimated selling price of the relevant finished
consigned processing materials products minus the estimated cost to be incurred until
Received or sold in the
completion estimated selling and distribution current year
expenses and relevant taxes.The net realizable value is determined by the
Finished products estimated selling price of the inventories minus the
It is sold or market value
estimated selling and distribution expenses and is recovered in the current
related taxes. year
(3) As of December 31 2024 there is no amount in the balance of inventories used for guarantee and no amount of
capitalization of borrowing costs.
9. Other current assets
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Value-added tax to be deducted and input tax to be certified 2100314.86 27399897.46
Prepaid income tax 47034.59 47034.59
Cost of return receivable 19314386.69 33326525.34
Total 21461736.14 60773457.39
10. Long-term equity investments
RMB
Changes in the current year Provision
Other for
comp Provisi impairme
Balance at the Addit rehen Other Cash
Investees beginning of the ional Reduced Investment sive chang dividends or
on Balance as at the nt
year invest investment profit or loss inco es in profits
Provisi Others end of the Balance
recognized declared to be on for current year as at thement under the equity me equit paid impair end of the
method adjust y ment currentment year
I. Joint ventures
Shenzhen Guanhua Printing
and Dyeing Co. Ltd. 122370494.08 - - (10814606.80) - - - - - 111555887.28 -
Sub-total 122370494.08 - - (10814606.80) - - - - - 111555887.28 -
II. Associates
Shenzhen Changlianfa
Printing and Dyeing Co. Ltd. 3358117.09 - - 260171.67 - - (346150.00) - - 3272138.76 -
Yehui International Co. Ltd. 1953409.53 - (1805949.58) (147459.95) - - - - - - -
Sub-total 5311526.62 - (1805949.58) 112711.72 - - (346150.00) - - 3272138.76 -
Total 127682020.70 - (1805949.58) (10701895.08) - - (346150.00) - - 114828026.04 -
- 59 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
11. Other equity instrument investments
(1) Details of other equity instrument investments
RMB
Changes in the current year
Balance at the Gains accruedto other Loss accrued to Balance as at the
Dividend Accumulative Reasons designated as
Item beginning of Additional Reduced income
Accumulative gains
comprehensive other Others end of the current recognized in accrued to other
losses accrued to being measured at fair
the year investment investment other value through otherincome in the comprehensive year comprehensive
current year income in the
the current income comprehensive comprehensive income
current year period income
Hualian Development Co. Ltd. 110457700.00 - - 19426300.00 - - 129884000.00 208000.00 127284000.00 - The Group plans to holdit for a long time
Shenzhen Dailisi Underwear Co. Ltd. 17741900.00 - - 1901000.00 - - 19642900.00 1037735.85 17083043.74 - The Group plans to holdit for a long time
Shenzhen Nanfang Textile Co.Ltd. 14803400.00 - - - (1621700.00) - 13181700.00 865050.16 11681700.00 - The Group plans to holdit for a long time
Shenzhen Xinfang Knitting Factory Co.Ltd. 2985900.00 - - - (291600.00) - 2694300.00 200000.00 2170300.00 -
The Group plans to hold
it for a long time
Jintian Industry (Group) Co. Ltd. - - - - - - - - - (14831681.50) The Group plans to holdit for a long time
Total 145988900.00 - - 21327300.00 (1913300.00) - 165402900.00 2310786.01 158219043.74 (14831681.50)
(2) Description of derecognition in the current year
There is no derecognition of other equity instrument investments this year.- 60 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
12. Investment properties
(1) Investment properties measured at the cost mode
RMB
Item Houses and buildings
I. Total original book value
1. Balance at the beginning of the year 350367442.40
2. Increase in the current year -
(1) Outsourcing -
(2) Transfer of fixed assets -
3. Decrease in the current year -
(1) Disposal -
(2) Other transfer-out -
4. Balance at the end of the year 350367442.40
II. Accumulated depreciation and accumulated amortization
1. Balance at the beginning of the year 224764235.22
2. Increase in the current year 9609816.99
(1) Provision or amortization 9609816.99
(2) Transfer of fixed assets -
3. Decrease in the current year -
(1) Disposal -
(2) Other transfer-out -
4. Balance at the end of the year 234374052.21
III. Provision for impairment
1. Balance at the beginning of the year -
2. Increase in the current year -
(1) Provision -
3. Decrease in the current year -
(1) Disposal -
4. Balance at the end of the year -
IV. Book value
1. Book value at the end of the year 115993390.19
2. Book value at the beginning of the year 125603207.18
(2) Investment properties without certificate of title
RMB
Reasons for failure to
Item Book value obtain the certificate of
title
Houses and buildings 11556252.96 Warrants not obtainedfor historical reasons
- 61 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
13. Fixed assets
(1) Fixed assets
RMB
Item Buildings and Machinery Transportation Electronicconstructions equipment equipment equipment and Total
others
I. Total original book value
1. Balance at the beginning
of the year 727679833.94 2711433903.98 17090895.87 44539622.55 3500744256.34
2. Increase in the current
year 9634489.50 35489764.62 471769.90 1139257.60 46735281.62
(1) Purchase - 5444196.63 471769.90 1139257.60 7055224.13
(2) Transfer from
construction in progress - 30045567.99 - - 30045567.99
(3) Other changes 9634489.50 - - - 9634489.50
3. Decrease in the current
year - 4168000.00 266184.80 717804.27 5151989.07
(1) Disposal or scrapping - - 266184.80 717804.27 983989.07
(2) Other changes - 4168000.00 - - 4168000.00
4. Balance at the end of the
year 737314323.44 2742755668.60 17296480.97 44961075.88 3542327548.89
II. Accumulated depreciation
1. Balance at the beginning
of the year 189420295.28 1179132635.63 7869614.58 33092767.56 1409515313.05
2. Increase in the current
year 23097751.05 198886428.20 2046425.49 4076907.22 228107511.96
(1) Provision 23097751.05 198886428.20 2046425.49 4076907.22 228107511.96
(2) Other changes - - - - -
3. Decrease in the current
year - - 249694.76 677349.26 927044.02
(1) Disposal or scrapping - - 249694.76 677349.26 927044.02
(2) Other changes - - - - -
4. Balance at the end of the
year 212518046.33 1378019063.83 9666345.31 36492325.52 1636695780.99
III. Provision for impairment
1. Balance at the beginning
of the year 9820261.26 15149037.18 6126.41 247280.71 25222705.56
2. Increase in the current
year 99508.16 6572870.85 1102.16 189993.37 6863474.54
(1) Provision 99508.16 6572870.85 1102.16 189993.37 6863474.54
3. Decrease in the current
year - - - 7256.11 7256.11
(1) Disposal or scrapping - - - 7256.11 7256.11
4. Balance at the end of the
year 9919769.42 21721908.03 7228.57 430017.97 32078923.99
IV. Book value
1. Book value at the end of
the year 514876507.69 1343014696.74 7622907.09 8038732.39 1873552843.91
2. Book value at the
beginning of the year 528439277.40 1517152231.17 9215154.88 11199574.28 2066006237.73
(2) Fixed assets without certificate of title
RMB
Item Book value Reasons for failure to obtain thecertificate of title
Houses and buildings 10815790.07 Warrants not handled forhistorical reasons
(3) Fixed assets of mortgage and guarantee
As at December 31 2024 the Group's fixed assets mortgaged for bank borrowings are detailed in Note (V) 21 "Assets
with Restricted Ownership or Right of Use".- 62 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
14. Construction in progress
14.1 Summary of construction in progress
RMB
Item Balance as at the end Balance as at the endof the current year of the previous year
Construction in progress 5814012.03 31307060.74
14.2 Construction in progress
RMB
Balance as at the end of the current year Balance as at the end of the previous year
Item Book balance Provision for Net book value Book balance Provision forimpairment impairment Net book value
Installation of
machinery equipment 5814012.03 - 5814012.03 31307060.74 - 31307060.74
15. Right-of-use assets
RMB
Item Buildings and Machinery equipment Totalconstructions
I. Total original book value:
1. Balance at the beginning of the
year 33450802.23 - 33450802.23
2. Increase in the current year 11214565.00 1799631.64 13014196.64
(1) Addition 11214565.00 1799631.64 13014196.64
3. Decrease in the current year 8181940.76 - 8181940.76
(1) Termination of leases 8181940.76 - 8181940.76
4. Balance at the end of the year 36483426.47 1799631.64 38283058.11
II. Accumulated depreciation
1. Balance at the beginning of the
year 21451335.66 - 21451335.66
2. Increase in the current year 8105002.79 1546340.96 9651343.75
(1) Provision 8105002.79 1546340.96 9651343.75
3. Decrease in the current year 8157739.16 - 8157739.16
(1) Termination of leases 8157739.16 - 8157739.16
4. Balance at the end of the year 21398599.29 1546340.96 22944940.25
III. Provision for impairment
1. Balance at the beginning of the
year - - -
2. Increase in the current year - - -
(1) Provision - - -
3. Decrease in the current year - - -
4. Balance at the end of the year - - -
IV. Book value
1. Book value at the end of the year 15084827.18 253290.68 15338117.86
2. Book value at the beginning of
the year 11999466.57 - 11999466.57
- 63 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
16. Intangible assets
(1) Details of intangible assets
RMB
Item Land use rights Software Patent right Total
I. Total original book value
1. Balance at the beginning
of the year 48258239.00 22600069.86 11825200.00 82683508.86
2. Increase in the current
year - 219057.84 - 219057.84
(1) Purchase - 219057.84 - 219057.84
3. Decrease in the current
year - - - -
4. Balance at the end of the
year 48258239.00 22819127.70 11825200.00 82902566.70
II. Accumulated accumulation
1. Balance at the beginning
of the year 16165713.67 15128172.39 11825200.00 43119086.06
2. Increase in the current
year 891565.32 3684123.37 - 4575688.69
(1) Provision 891565.32 3684123.37 - 4575688.69
3. Decrease in the current
year - - - -
4. Balance at the end of the
year 17057278.99 18812295.76 11825200.00 47694774.75
III. Provision for impairment
1. Balance at the beginning
of the year - - - -
2. Increase in the current
year - - - -
3. Decrease in the current
year - - - -
4. Balance at the end of the
year - - - -
IV. Book value
1. Book value at the end of
the year 31200960.01 4006831.94 - 35207791.95
2. Book value at the
beginning of the year 32092525.33 7471897.47 - 39564422.80
As at December 31 2024 for the intangible assets pledged by the Group due to bank borrowings please refer to Note
(V) 21 "Assets with restricted ownership or right of use" for details.
17. Goodwill
(1) Original book value of goodwill
RMB
Balance at the
Name of the investees or matters beginning of the Increase in Decrease in
Balance as at the
forming goodwill year current year current year
end of the
current year
SAPO Photoelectric 9614758.55 - - 9614758.55
Shenzhen MCENTURY Garment
Co. Ltd. 2167341.21 - - 2167341.21
Total 11782099.76 - - 11782099.76
- 64 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
17. Goodwill - continued
(2) Provision for impairment of goodwill
RMB
Balance at the Balance as at the
Name of the investees or matters beginning of the Increase in Decrease in end of the
forming goodwill year current year current year current year
SAPO Photoelectric 9614758.55 - - 9614758.55
Shenzhen MCENTURY Garment
Co. Ltd. 2167341.21 - - 2167341.21
Total 11782099.76 - - 11782099.76
18. Long-term deferred expenses
RMB
Balance at the Increase in the Amortization Balance as atItem beginning of current year amount for the Other decreases the end of thethe year current year current year
Decoration and
facility renovation 3503660.94 5515370.67 2934915.74 - 6084115.87
costs
19. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offset
RMB
Balance as at the end of the current Balance as at the end of the
year previous year
Item Deductible
temporary Deferred tax
Deductible
temporary Deferred tax
differences Assets differences Assets
Provision for credit losses 55500808.39 9874641.13 59994128.15 10538054.68
Provision for asset impairment 146194722.68 21929208.40 132512745.52 19876911.83
Unrealized profits of internal
transactions 2056848.93 308527.34 2145963.47 321894.52
Employee compensation payable 4173800.00 1043450.00 4173800.00 1043450.00
Deferred income 95821558.58 14373233.79 96647256.82 14497088.52
Deductible losses 96771113.52 14515667.03 127769387.40 19165408.11
Fair value changes of investments in
other equity instruments 14831681.50 3707920.38 14831681.50 3707920.38
Lease liabilities 16381050.71 2457157.61 12177572.68 1826635.90
Changes in fair value of derivative
financial liabilities 1278559.35 191783.90 - -
Estimated liabilities 9451090.40 1417663.56 - -
Total 442461234.06 69819253.14 450252535.54 70977363.94
Based on the Group's profit forecast for the future periods the Group believes that it is highly probable to obtain
sufficient taxable income to utilize the above-mentioned deductible temporary differences and deductible losses in the
future periods so the relevant deferred tax assets are recognized.- 65 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
19. Deferred tax assets and deferred tax liabilities - continued
(2) Deferred tax liabilities without offset
RMB
Balance as at the end of the current Balance as at the end of the previous
year year
Item Taxable Taxable
temporary Deferred tax Deferred tax
differences Liabilities
temporary
differences Liabilities
Difference between initial
recognition cost and tax base of 62083693.36 15520923.34 62083693.36 15520923.34
long-term equity investments
Fair value changes of investments
in other equity instruments 158219043.74 39554760.94 138805043.74 34701260.94
Rent receivable 8532598.56 2133149.64 10108726.81 2527181.70
Right-of-use assets 15338117.86 2300717.68 11999466.57 1799919.99
Total 244173453.52 59509551.60 222996930.48 54549285.97
(3) Deferred tax assets or liabilities listed net amount after write-offs
RMB
Deduction amount Deduction amount
of deferred tax Balance of of deferred tax Balance of
Item assets and deferred tax assets assets and
deferred tax assets
liabilities at the or liabilities after liabilities at the or liabilities after
end of the current offset at the end end of the offset at the end of
year of the current year previous year the previous year
Deferred taxassets (10898741.94) 58920511.20 (10371998.52) 60605365.42
Deferred tax liabilities (10898741.94) 48610809.66 (10371998.52) 44177287.45
(4) Unrecognized deferred tax assets
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Deductible temporary differences 15750990.01 14740965.97
Deductible losses 365594502.67 442263671.30
Total 381345492.68 457004637.27
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following years
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Year 2024 - 69053143.67
2025--
202683168900.3753989578.07
202710067397.5010067397.50
202813479346.6639988583.76
2029132565644.36129732249.98
203075352814.2475352814.24
2031--
2032--
203350960399.5464079904.08
2034--
Total 365594502.67 442263671.30
- 66 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
20. Other non-current assets
RMB
Balance as at the end of the current year Balance as at the end of the previous year
Item Book balance Provision forimpairment Book value Book balance
Provision for
impairment Book value
Advances for projects
and equipment 2033785.64 - 2033785.64 3757334.44 - 3757334.44
Investment funds to be
liquidated 25760086.27 - 25760086.27 25760086.27 - 25760086.27
Total 27793871.91 - 27793871.91 29517420.71 - 29517420.71
- 67 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
21. Assets with restrictions on the ownership or use right
At the end of current year At the end of the previous year
Item Book balance Book value Restricted type Restricted condition Book balance Book value Restrictedtype Restricted condition
Monetary funds 38844838.96 38844838.96 Restricted Account freezing andright of use guarantee 9305118.06 9305118.06
Restricted Account freezing and
right of use guarantee
Notes receivable 30291952.76 30291952.76 Restricted Bill endorsement hasright of use not been derecognized 42665954.11 42665954.11
Restricted Bill endorsement has
right of use not been derecognized
Fixed assets 581895750.64 448156480.33 Restrictedright of use Mortgage 572261261.14 454185881.22
Restricted
right of use Mortgage
Intangible assets 44770083.00 31200960.01 Restricted Restrictedright of use Mortgage 44770083.00 32092525.33 right of use Mortgage
Total 695802625.36 548494232.06 669002416.31 538249478.72
- 68 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
22. Short-term borrowings
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Credit borrowings - 8000000.00
23. Derivative financial liabilities
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Foreign exchange forward contract 1278559.35 -
24. Notes payable
RMB
Bill type Balance as at the end of Balance as at the end ofthe current year the previous year
Bank acceptance bills 31095540.29 31049291.49
The Group had no notes payable due but unpaid at the end of the year.
25. Accounts payable
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Payment for goods 282510771.35 386767637.00
Service fee 15645017.04 13817610.72
Payment for outsourcing processing 3489364.64 4584423.60
Royalties 2006578.00 2207166.50
Others 1160849.52 1171298.42
Total 304812580.55 408548136.24
As at December 31 2024 the Group had no significant accounts payable with aging of over 1 year or overdue.
26. Advances from customers
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Rent and others 1051491.96 1450096.30
As at December 31 2024 the Group had no significant advances from customers with aging of over 1 year.
27. Contract liabilities
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Payment for goods 490562.97 1436943.34
As at December 31 2024 the Group had no significant contract liabilities with aging of more than 1 year.- 69 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
28. Employee compensation payable
(1) Presentation of employee compensation payable
RMB
Balance at the
Item beginning of the Increase in Decrease in
Balance as at the
current year current year end of the currentyear year
Short-term compensation 53853081.65 213903704.48 214130906.81 53625879.32
Post-employment benefits -
defined contribution plans - 18732853.22 18032853.22 700000.00
Dismissal welfare 2584080.44 6172694.98 6397364.82 2359410.60
Total 56437162.09 238809252.68 238561124.85 56685289.92
(2) Presentation of short-term compensation
RMB
Balance at the
Item beginning of the Increase in Decrease in
Balance as at the
year current year current year
end of the current
year
Salaries bonuses allowances and
subsidies 50484811.72 190224348.48 189308677.27 51400482.93
Employee welfare expenses - 6936747.83 6936747.83 -
Social insurance premiums - 4740283.18 4740283.18 -
Including: medical insurance
premiums - 3516302.65 3516302.65 -
Maternity insurance premiums - 572355.25 572355.25 -
Work-related injury insurance
premiums - 651625.28 651625.28 -
Housing provident fund - 8872644.55 8872644.55 -
Union funds and employee
education funds 3368269.93 3129680.44 4272553.98 2225396.39
Total 53853081.65 213903704.48 214130906.81 53625879.32
(3) Presentation of defined contribution plans
RMB
Balance at the
Item beginning of the Increase in Decrease in
Balance as at the
year current year current year
end of the current
year
Basic endowment insurance
premiums - 15756686.06 15056686.06 700000.00
Supplementary endowment
insurance premiums - 2765981.24 2765981.24 -
Unemployment insurance
premium - 210185.92 210185.92 -
Total - 18732853.22 18032853.22 700000.00
The Group participates in the endowment insurance and unemployment insurance plans established by government
agencies in accordance with the regulations. According to the plans the Group makes contributions to such plans in
accordance with the prescribed standards. Except for the above monthly contributions the Group has no further payment
obligations. The corresponding expenses are included in the current profit or loss or the cost of related assets when
incurred.The Group shall pay RMB 15756686.06 and RMB 210185.92 to the endowment insurance and unemployment
insurance plans respectively for the current year (2023: RMB 14207148.80 and RMB 296839.87). As at December 31
2024 the Group still had RMB 700000.00 of payable contributions due but not paid to the endowment insurance plan
during the reporting period and the relevant payable contributions are expected to be paid after the reporting period.- 70 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
29. Taxes payable
RMB
Taxation Balance as at the end of Balance as at the end ofthe current year the previous year
Corporate income tax 4720967.29 2080849.81
Individual income tax 751443.34 1080628.82
Value-added tax 592143.28 582961.29
Other taxes 789176.93 596455.22
Total 6853730.84 4340895.14
30. Other payables
(1) Other payables by nature of payment
RMB
Item Balance as at the end of the Balance as at the end of thecurrent year previous year
Engineering equipment payment 56213373.95 67176881.34
Current accounts 53333604.97 56444481.12
Guarantee and deposits 37775687.75 48208919.61
Others 12974323.31 12698062.48
Total 160296989.98 184528344.55
(2) As at December 31 2024 the Group had no significant other payables with aging of more than 1 year or overdue.
31. Non-current liabilities maturing within one year
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Long-term borrowings maturing within one year (Note
(V) 33) 47011978.04 102612497.53
Lease liabilities maturing within one year (Note (V)
34)6884486.595490255.46
Estimated liabilities due within one year 9451090.40 -
Total 63347555.03 108102752.99
32. Other current liabilities
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Endorsed but undue acceptance bills 30291952.76 42665954.11
Payables for returned goods 23747757.33 37244449.90
Output tax to be carried forward in the value-added tax 32312.18 172073.21
Total 54072022.27 80082477.22
- 71 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
33. Long-term borrowings
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year Interest rate range
Guaranteed borrowings (Note) 209400848.04 608190812.09 3.36%-3.41%
Total 209400848.04 608190812.09
Less: long-term borrowings
maturing within one year 47011978.04 102612497.53
Long-term borrowings due
after one year 162388870.00 505578314.56
Note: SAPO Photoelectric a subsidiary of the Company obtained the loan by mortgaging the real estate such as the
plant it held and the Company and Hengmei Optoelectronics Co. Ltd. provided 60% and 40% joint and several liability
guarantee for the loan respectively.
34. Lease liabilities
RMB
Item Balance as at the end of Balance as at the end ofthe current year the previous year
Lease liabilities 16381050.71 12177572.68
Total 16381050.71 12177572.68
Less: Lease liability maturing within one year 6884486.59 5490255.46
Lease liabilities due after one year 9496564.12 6687317.22
The Group's lease liabilities are presented as follows according to the maturity of undiscounted remaining contractual
obligations:
RMB
Within 1 month 1- 3 months 3 - 12 months 1 - 5 years Over 5 years Total
Balance as at the
end of the current 1105714.51 2425877.50 3879671.64 7808943.06 3098158.97 18318365.68
year
Balance as at the
end of the 513149.55 2012582.22 3284024.84 5822333.46 1672592.08 13304682.15
previous year
35. Deferred income
RMB
Balance at the Increase in Decrease in Balance as at theItem beginning of the current year current year end of the current Formation causesyear year
Government 97485986.89 15265000.00 16401790.63 96349196.26 Governmentgrants grants received
36. Equity
RMB
Changes in the current year
Balance at the Conversion of Balance as at the
Item beginning of the New shares Bonus issue provident Others Sub-total end of theyear issued fund into current year
shares
Total shares 506521849.00 - - - - - 506521849.00
- 72 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
37. Capital reserve
RMB
Balance at the
Item beginning of the Increase in current Decrease in current
Balance as at the
year year end of the currentyear year
Equity premium 1826482608.54 - - 1826482608.54
Other capital reserves 135117216.09 - - 135117216.09
Total 1961599824.63 - - 1961599824.63
38. Other comprehensive income
RMB
Amount for the current year
Less:
retained
Less: the income
amount included
included in in other Attribut
other compreh able toBalance at the Amount before
Item beginning of income tax this comprehensi
ensive Attributable to minorit Balance as at theincome Less: income y end of the current
the year year ve income inprior period in prior tax expenses
parent company
periods after tax
shareho year
and lders
transferred and after
to current transferr tax
profit or loss ed tocurrent
profit or
loss
I. Other comprehensive income that 106877807.32
cannot be reclassified into profit or loss 92317307.32 19414000.00 - - 4853500.00 14560500.00 -
1. Changes in fair value of other equity
instrument investments 92317307.32 19414000.00 - - 4853500.00 14560500.00 -
106877807.32
II. Other comprehensive income to be
reclassified into profit or loss later 1290073.49 - 1290073.49 - - (1290073.49) - -
1. Changes in the fair value of other debt
investments - - - - - - - -
2. Translation differences of foreign
currency financial statements 1290073.49 - 1290073.49 - - (1290073.49) - -
Total of other comprehensive income 93607380.81 19414000.00 1290073.49 - 4853500.00 13270426.51 - 106877807.32
39. Surplus reserves
RMB
Balance at the
Item beginning of the Increase in current Decrease in current
Balance as at the
year year end of the currentyear year
Statutory surplus reserve 104262315.64 - - 104262315.64
40. Undistributed profits
RMB
Item Current year Previous year
Undistributed profits at the beginning of the
year before adjustment 216160896.14 170636610.95
Total adjusted undistributed profits at the
beginning of the year - -
Adjusted undistributed profit at the beginning
of the year 216160896.14 170636610.95
Plus: net profit attributable to shareholders of
the parent company in the current year 89371134.24 79268250.45
Less: Withdrawal of statutory surplus reserves - 3352654.32
Distribution of dividends of ordinary
shares (Note) 32923916.72 30391310.94
Undistributed profits at the end of the year 272608113.66 216160896.14
Note: according to the resolution of the General Meeting on May 29 2024 the Company distributed cash dividends of
RMB 0.65 (including tax) for every 10 shares based on the share capital of 506521849 shares as at December 31 2023
with a total cash dividends of RMB 32923916.72 (tax inclusive).- 73 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
41. Operating revenue and operating costs
(1) Operating revenue and operating costs
RMB
Item Amount for the current year Amount for the previous yearRevenue Cost Revenue Cost
Primary business 3275150434.05 2748312498.75 3031175008.58 2524464550.09
Other business 60132574.63 47547436.07 48503366.87 37167294.44
Total 3335283008.68 2795859934.82 3079678375.45 2561631844.53
(2) Primary business by product
RMB
Amount for the current year Amount for the previous year
Product type Income from Cost of primary Income from Cost of primary
primary business business primary business business
Polarizer sales
business 3161332478.08 2720719735.99 2885625542.77 2463137348.05
Property leasing and
others 113817955.97 27592762.76 145549465.81 61327202.04
Total 3275150434.05 2748312498.75 3031175008.58 2524464550.09
(3) Primary business by region
RMB
Amount for the current year Amount for the previous year
Main business area Income from Cost of primary Income from Cost of primary
primary business business primary business business
Domestic 3113083695.45 2621542725.57 2914588072.35 2427944202.03
Overseas 162066738.60 126769773.18 116586936.23 96520348.06
Total 3275150434.05 2748312498.75 3031175008.58 2524464550.09
(4) Description of performance obligations
The Group's sales of goods are mainly the production and sales of polarizers and textiles-related goods. For goods
sold to customers the Group recognizes revenue when the right of control of the goods is transferred that is when the
goods are delivered to the designated place of the other party and signed by the other party. The Group recognizes a
receivable when the goods are delivered to the customer because the delivery of the goods to the customer represents an
unconditional right to receive the contractual consideration and the maturity of the payment depends only on the
passage of time. When the customer makes a prepayment for goods the Group recognizes the transaction amount
received as a contract liability and recognizes the revenue when the goods are delivered to the customer.The Group provides property services to customers and such services represent performance obligations performed over
a period of time. For property service the Group recognizes revenue in the course of providing property service.
(5) Description of allocation to remaining performance obligations
As of December 31 2024 the amount of contract liabilities corresponding to the performance obligations that the Group
has already signed contracts for but has not yet fulfilled or has not fully fulfilled is RMB 490562.97 which will be
recognized as revenue when the customer obtains the control over goods.- 74 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
42. Taxes and surcharges
RMB
Item Amount for the Amount for thecurrent year previous year
Property taxes 7240576.84 6184638.83
Urban maintenance and construction tax 397643.06 555230.22
Education surcharge 287055.45 400403.17
Other taxes 2310230.30 2153350.91
Total 10235505.65 9293623.13
43. Selling and distribution expenses
RMB
Item Amount for the Amount for thecurrent year previous year
Employee compensation 15245568.88 17089203.74
Sales service fee 19491891.54 10639607.95
Business entertainment expenses 1117751.47 972733.63
Others 6405391.58 5494125.29
Total 42260603.47 34195670.61
44. G&A expenses
RMB
Item Amount for the Amount for thecurrent year previous year
Employee compensation 90301081.26 90991755.13
Depreciation cost 10962929.91 11118057.18
Professional service fees 10520874.85 8841449.74
Amortization of intangible assets 4575688.69 4891672.68
Property leasing and utilities 2441383.42 4086627.39
Business entertainment expenses 1193877.91 1439231.97
Others 14351985.54 13002616.44
Total 134347821.58 134371410.53
45. R&D expenses
RMB
Item Amount for the Amount for thecurrent year previous year
Employee compensation 15844594.49 14827264.16
Material consumption 83483679.76 85216243.35
Depreciation cost 3275385.23 3389328.35
Others 1208163.43 1220205.06
Total 103811822.91 104653040.92
The Group has no development expenses of R&D projects that meet the capitalization requirements.- 75 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
46. Financial expenses
RMB
Item Amount for the current Amount for the previousyear year
Interest expenses (Note) 17858022.73 27339804.17
Less: interest income 7272362.76 12947471.64
Exchange differences (3772940.12) 4332702.63
Service fee and others 5308436.20 5674466.00
Total 12121156.05 24399501.16
Note: The interest expenses of the lease liabilities in 2024 is RMB 721945.56.
47. Other income
RMB
Classification by nature Amount for the current Amount for the previousyear year
Transfer-in of deferred income 16401790.63 22107734.21
Support funds for industry development (Note 1) 7988744.44 11049910.96
Support funds for enterprise development (Note 2) 989098.49 553455.00
Tax incentives 16014588.22 16881612.68
Others 89885.75 147651.06
Total 41484107.53 50740363.91
Note 1: The support funds for industry development mainly include the 2024 Special Science and Technology
Innovation Funds (the first batch) funded by the Science and Technology Innovation Bureau of Pingshan District
Shenzhen City the Foreign Trade Quality Growth Support Plan of the Bureau of Commerce and the Industry Standard
Formulation Project Subsidies of the Shenzhen Administration for Market Regulation.Note 2: The support funds for enterprise development mainly include the Steady Growth Funds of Industry and
Information Technology Bureau of Shenzhen Municipality and the One-time Subsidy for Job Expansion of Guangdong
Provincial Social Insurance Fund Administration.
48. Investment (loss) income
RMB
Item Amount for the current Amount for the previousyear year
Losses on long-term equity investments accounted for
under equity method (10701895.08) (6898983.89)
Investment income from disposal of long-term equity
investments 833613.28 -
Investment income obtained during holding the financial
assets held for trading 13846181.90 15519035.33
Investment income (loss) from derecognition of derivative
financial liabilities (6454000.00) -
Dividend income from investments in other equity
instrument during the holding period 2310786.01 2208584.12
Total (165313.89) 10828635.56
- 76 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
49. Gains from changes in fair value
RMB
Sources of gains from changes in fair value Amount for the Amount for thecurrent year previous year
Financial assets held for trading 2413062.80 2151780.82
Derivative financial liabilities (1278559.35) -
Total 1134503.45 2151780.82
50. Credit loss gains
RMB
Item Amount for the Amount for thecurrent year previous year
Gains on impairment of accounts receivable (Note (V) 4 (2)) 5093840.35 4133136.51
Gains on impairment of other receivables (Note (V) 7 (3)) 6606.31 402638.63
Total 5100446.66 4535775.14
51. Asset impairment loss
RMB
Item Amount for the Amount for thecurrent year previous year
Inventory depreciation loss (123538967.06) (126089709.42)
Fixed asset impairment loss (6863474.54) -
Other asset impairment loss (2020667.15) -
Total (132423108.75) (126089709.42)
52. Non-operating revenue
RMB
Item Amount for the Amount for the Amount included incurrent year previous year the current non-
recurring profit or loss
Gains from unclaimed payables 1439654.31 768398.45 1439654.31
Liquidated damages 275672.99 252000.00 275672.99
Insurance compensation 24911.31 193275.48 24911.31
Gains from the damage and scrapping
of non-current assets 341.42 -
341.42
Others 64506.89 236205.33 64506.89
Total 1805086.92 1449879.26 1805086.92
- 77 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
53. Non-operating expenses
RMB
Amount for the Amount for the Amount included inItem current year previous year the current non-recurring profit or
loss
Losses on scrapping of non-current
assets 51361.87 115541.99 51361.87
Amercement outlay 44000.00 42319.72 44000.00
Compensation expenses 468146.00 7926787.08 468146.00
Other losses 134509.84 121152.72 134509.84
Total 698017.71 8205801.51 698017.71
54. Income tax expenses
(1) List of income tax expenses
RMB
Item Amount for the current Amount for theyear previous year
Income tax expenses for the current period 8562225.60 8563917.13
Deferred tax expenses 1264876.43 10843814.34
Total 9827102.03 19407731.47
(2) Adjustment process of accounting profits and income tax expenses
RMB
Item Amount for the Amount for thecurrent year previous year
Total profits 152883868.41 146544210.05
Income tax expenses calculated at statutory tax rate 38220967.10 36636052.51
Influence of different tax rates applicable to subsidiaries (15431945.83) (14393929.80)
Influence of adjustments to the income tax for the prior years (27243.77) 27700.05
Influence of non-taxable income (3079800.79) (1126262.45)
Influence of nondeductible costs expenses and losses 5591965.60 2266174.69
Utilization of unrecognized deductible losses and deductible
temporary differences from prior periods and their tax effects (7061678.51) (25587.79)
Tax effects of unrecognized deductible losses and deductible
temporary differences 4078341.28 10154045.89
Changes in deferred tax assets/liabilities at the beginning of the
period due to tax rate adjustments - (21128.84)
Additional deduction for R&D expenses (12458381.02) (13995916.51)
Others (5122.03) (113416.28)
Income tax expenses 9827102.03 19407731.47
- 78 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
55. Notes to items in statement of cash flows
(1) Cash related to operating activities
Other cash received related to operating activities
RMB
Item Amount for the Amount for thecurrent year previous year
Letter of credit guarantee and deposit 30652489.87 37450879.69
Interest income 9057486.70 18578870.77
Government grants 24242842.93 16029942.02
Current accounts and others 23056150.45 15217631.42
Total 87008969.95 87277323.90
Other cash paid related to operating activities
RMB
Item Amount for the Amount for thecurrent year previous year
Letter of credit guarantee and deposit 57908823.39 34639361.27
Out-of-pocket expenses 68667614.18 71894532.84
Current accounts and others 27179768.77 10910080.05
Total 153756206.34 117443974.16
(2) Cash related to investing activities
Other cash received related to significant investing activities
RMB
Item Amount for the Amount for thecurrent year previous year
Structural deposits 950000000.00 950000000.00
Monetary fund 747000000.00 245000000.00
Certificates of deposit and others - 259000000.00
Total 1697000000.00 1454000000.00
Other cash paid related to significant investing activities
RMB
Item Amount for the Amount for thecurrent year previous year
Structural deposits 950000000.00 1400000000.00
Monetary fund 649000000.00 290500000.00
Foreign exchange forward contract 6454000.00 -
Certificates of deposit and others - 150000000.00
Total 1605454000.00 1840500000.00
- 79 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
55. Notes to items in statement of cash flows - continued
(2) Cash related to investing activities - continued
Other cash received related to investing activities
RMB
Item Amount for the Amount for thecurrent year previous year
Wealth management investment and structured deposits 1697000000.00 1454000000.00
Other cash paid related to investing activities
RMB
Item Amount for the Amount for thecurrent year previous year
Wealth management investment and structured deposits 1605454000.00 1840500000.00
(3) Cash related to financing activities
Other cash paid related to financing activities
RMB
Item Amount for the Amount for thecurrent year previous year
Lease payments 9508462.57 8776024.71
Changes in various liabilities arising from financing activities
RMB
Balance at the Increase in current year Decrease in current year Balance as at the
Item beginning of the Cash changes Non-cash Cash changes Non-cash end of theyear changes changes current year
Short-term
borrowings 8000000.00 - - 8000000.00 - -
Long-term
borrowings (Note) 608190812.09 - 18176583.78 416966547.83 - 209400848.04
Lease liabilities
(Note) 12177572.68 - 13711940.60 9508462.57 - 16381050.71
Total 628368384.77 - 31888524.38 434475010.40 - 225781898.75
Note: long-term borrowings and lease liabilities include those maturing within one year.
(4) The Group does not present cash flows on a net basis.
(5) The Group has no significant activities that do not involve current cash receipts and payments but affect the
financial position of the enterprise or may affect the cash flows of the enterprise in the future.- 80 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
56. Supplementary information to statement of cash flows
(1) Supplementary information to the statement of cash flows
RMB
Supplementary information Amount for the Amount for thecurrent year previous year
1. Adjustment of net profit to cash flows from operating
activities:
Net profit 143056766.38 127136478.58
Plus: provision for assets impairment 132423108.75 126089709.42
Provision for credit losses (reversal) (5100446.66) (4535775.14)
Depreciation of fixed assets and investment properties 237717328.95 235884938.02
Amortization of right-of-use assets 9651343.75 8257857.90
Amortization of intangible assets 4575688.69 4891672.68
Amortization of long-term deferred expenses 2934915.74 2160430.42
Losses (gains) from disposal of fixed assets intangible
assets and other long-term assets - (1.72)
Losses (gains) on retirement of non-current assets 51020.45 113290.32
Losses from changes in fair value (income) (1134503.45) (2151780.82)
Financial expenses (income) 17301161.66 26883671.86
Investment loss (income) 165313.89 (10828635.56)
Decrease (increase) in deferred tax assets 1684854.22 9218448.87
Increase (decrease) in deferred tax liabilities (419977.79) 1625365.47
Decrease (increase) in inventories (176903495.67) (304034232.92)
Decrease (increase) in operating receivables 29434877.96 (126515773.08)
Increase (decrease) in operating payables (164173431.78) 90571075.50
Net cash flows from operating activities 231264525.09 184766739.80
2. Net changes in cash and cash equivalents:
Ending balance of cash and cash equivalents 302084839.35 461420457.33
Less: beginning balance of cash and cash equivalents 461420457.33 874474834.46
Net increase (decrease) in cash and cash equivalents (159335617.98) (413054377.13)
(2) Composition of cash and cash equivalents
RMB
Item Balance as at the end Balance as at the endof the current year of the previous year
I. Cash 302084839.35 461420457.33
Including: cash on hand 4751.69 1710.40
Unrestricted bank deposits 302080087.66 461418746.93
Other unrestricted monetary funds - -
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 302084839.35 461420457.33
(3) As of the end of the year the Group had no cash and cash equivalents with restricted use that were still presented as
such.- 81 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
56. Supplementary information to the statement of cash flows - continued
(4) Monetary funds other than cash and cash equivalents
RMB
Item Balance as at the end Balance as at the endof the current year of the previous year Reason
Bill and L/C guarantee 35443338.96 5905118.06 Not available forpayment at any time
Demand interest and 7-day notice
deposit interest 31765.51 1548872.61
Not available for
payment at any time
Others 3401500.00 3400000.00 Account freezing
Total 38876604.47 10853990.67
57. Monetary items in foreign currency
(1) Foreign currency monetary items
RMB
Foreign currency
Item balance at the end of Exchange rate of
Conversion at the end
conversion of the current yearthe current year RMB balance
Monetary funds 84414773.46
Including: USD 5628812.10 7.1884 40462152.89
JPY 934188594.29 0.0462 43190341.28
HKD 823195.78 0.9260 762279.29
Accounts receivable 38996397.54
Including: USD 5389057.25 7.1884 38738699.13
HKD 278280.00 0.9260 257698.41
Other receivables 506973.56
Including: USD 70526.62 7.1884 506973.56
Accounts payable 165329381.79
Including: USD 2549681.14 7.1884 18328127.89
JPY 3179297798.00 0.0462 146988475.10
HKD 13800.00 0.9260 12778.80
Other payables 6609813.60
Including: USD 879786.00 7.1884 6324253.68
JPY 5555131.00 0.0462 256830.37
HKD 31025.43 0.9260 28729.55
58. Lease
(1)As a lessee
The Group leases a number of assets including houses and buildings for lease terms of 1 to 10 years. The above right-
of-use assets cannot be used for purposes such as borrowing mortgages guarantees etc.The Group had no variable lease payments that were not included in the measurement of lease liabilities.- 82 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(V) Notes to financial statements - continued
58. Leases - continued
(1) As a lessee - continued
The short-term lease expenses subject to simplified accounting treatment and recognized in the current profit or loss in
this year amounted to RMB 950508.89 (previous year: RMB 558957.38).The total cash outflows related to leases in the current year amounted to RMB 10458971.46 (previous year: RMB
9334982.09).
(2) As a lessor
Operating lease as lessor
RMB
Including: revenue related
Item Lease income to variable lease paymentsnot included in lease
receipts
Buildings and constructions 96066371.44 -
The operating leases of the Group as the lessor are related to houses and buildings with lease terms ranging from 1 to 15
years.The revenue related to operating leases in the current year amounted to RMB 96066371.44 (previous year: RMB
97558143.88) of which the revenue related to variable lease payments not included in the lease receipts amounted to
RMB 0 (previous year: RMB 0).RMB
Undiscounted lease receipts
Item Amount at the end of Amount at the end of the
current year previous year
The first year after the balance sheet date 66825466.35 74399477.80
The second year after the balance sheet date 49946457.62 54475653.29
The third year after the balance sheet date 31103495.38 44564404.34
The fourth year after the balance sheet date 8785825.58 29708115.33
The fifth year after the balance sheet date 6625510.75 9346233.32
Subsequent years 5106929.55 7327310.40
Total undiscounted lease receipts 168393685.23 219821194.48
- 83 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024（VI） R&D expenditures
(1) Presented by nature of expenses
RMB
Item Amount for the current Amount for the previousyear year
Employee compensation 15844594.49 14827264.16
Material consumption 83483679.76 85216243.35
Depreciation cost 3275385.23 3389328.35
Others 1208163.43 1220205.06
Total 103811822.91 104653040.92
Including: expensed R&D expenditures 103811822.91 104653040.92
Capitalized R&D expenditures - -
(2) The Group has no development expenses of R&D projects that meet the capitalization requirements.
(3) The Group has no significant outsourced projects under research.（VII） Changes in the scope of consolidation
The consolidation scope of the Group has not changed.（VIII）Equity in other entities
1. Interest in subsidiary
(1) Structure of the enterprise group
Shareholding ratio of Method
Name of subsidiaries Main premise Registered capital Registration Business nature the Company (%) of(RMB) place Direct Indirect acquisition
Shenzhen Lisi Industrial
Development Co. Ltd. Shenzhen RMB 2360000.00 Shenzhen Property leasing 100.00 -
Establish
ment
Shenzhen Huaqiang Hotel
Co. Ltd. Shenzhen RMB 10005300.00 Shenzhen Property leasing 100.00 -
Establish
ment
Shenzhen Shenfang Property
Management Co. Ltd. Shenzhen RMB 1600400.00 Shenzhen Property management 100.00 -
Establish
ment
Shenzhen MCENTURY Shenzhen RMB 13000000.00 Shenzhen Production and sales of 100.00 - EstablishGarment Co. Ltd. textiles ment
Shenzhen Shenfang Sungang
Property Management Co. Shenzhen RMB 1000000.00 Shenzhen Property management 100.00 - Establish
Ltd. ment
SAPO Photoelectric Shenzhen RMB 583333333.00 Shenzhen Production and sales of Acquisitipolarizers 60.00 - on
SATO (Hong Kong) Limited Hong Kong HKD 10000.00 Hong Kong Polarizer sales - 100.00 Establishment
- 84 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(VIII) Interests in other entities - continued
1. Interests in subsidiary - continued
(2) Significant non-wholly-owned subsidiaries
RMB
Profit or loss Dividends declared to
Name of Shareholding ratio by attributable to be distributed to Balance of minority
subsidiaries minority shareholders minority shareholders minority shareholders interests at the end of
in the current year in the current year the current year
SAPO
Photoelectric 40.00% 53685632.14 - 1283450723.88
(3) Key financial information of significant non-wholly-owned subsidiaries
RMB
SAPO Photoelectric
Balance as at the end Balance as at the end
Item of the current year/ of the previous year/
Amount for the Amount for the
current year previous year
Current assets 2039673042.84 2224998868.32
Non-current assets 1998903130.31 2215651449.74
Total assets 4038576173.15 4440650318.06
Current liabilities 567603106.30 762685435.65
Non-current liabilities 267706992.70 608912888.60
Total liabilities 835310099.00 1371598324.25
Operating revenue 3230006072.51 2944147907.27
Net profit 134214080.34 119670570.33
Total comprehensive income 134214080.34 119968303.83
Cash flows from operating activities 205666636.23 168163478.05
2. Equity in joint ventures or associates
Summarized financial information of insignificant joint ventures and associates
RMB
Balance as at the end Balance as at the end
Item of the current year/ of the previous year/Amount for the Amount for the
current year previous year
Joint ventures:
Total of investment book value 111555887.28 122370494.08
Total amounts of the following items calculated at shareholding
ratio
- Net profit (loss) (10814606.80) (7135777.68)
-Other comprehensive income - -
-Total comprehensive income (10814606.80) (7135777.68)
Associates:
Total of investment book value 3272138.76 5311526.62
Total amounts of the following items calculated at shareholding
ratio
-Net profit 112711.72 236793.79
-Other comprehensive income - 99168.85
-Total comprehensive income 112711.72 335962.64
- 85 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024（IX） Government grants
(1) As at December 31 2024 the Group had no government grants recognized at the amount receivable.
(2) Liability items involving government grants
RMB
Amount at the Amount included in Amount included
Liabilities beginning of the New grants in the non-operating in other income Other changes in Amount at the end of Related to assets/
year current year revenue in the in the current the current year current year Related to income
current year year
Deferred
income 97485986.89 15265000.00 16401790.63 - 96349196.26 Related to assets
Total 97485986.89 15265000.00 - 16401790.63 - 96349196.26
(3) Government grants included in the current profit or loss
RMB
Grants Amount for the current Amount for theyear previous year
Other income 25379633.56 33711100.17
（X） Risks associated with financial instruments
The group's main financial instruments include monetary funds financial assets held for trading notes receivable
accounts receivable receivables financing other receivables other equity instrument investments short-term
borrowings derivative financial liabilities notes payable accounts payable other payables other current liabilities and
long-term borrowings etc. At the end of the year the financial instruments held by the group are as follows and the
details are described in note (v). Risks associated with these financial instruments and the risk management policies
adopted by the group to mitigate these risks are described below. The group's management manages and monitors these
exposures to ensure that the risks are controlled within certain limits.- 86 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(X) Risks related to financial instruments - continued
RMB
Item Amount at the end of Amount at the end of thecurrent year previous year
Financial assets
Measured at fair value through current profit or loss
Financial assets held for trading 731419904.42 821946114.68
Measured at fair value through other comprehensive
income
Receivables financing 6804603.68 22839459.13
Other equity instrument investments 165402900.00 145988900.00
Measured at amortized costs
Monetary funds 340961443.82 472274448.00
Notes receivable 47305221.88 50963943.01
Accounts receivable 863731936.89 820134833.95
Other receivables 3596543.96 3219287.77
Financial liabilities
Measured at fair value through current profit or loss
Derivative financial liabilities 1278559.35 -
Measured at amortized costs
Short-term borrowings - 8000000.00
Notes payable 31095540.29 31049291.49
Accounts payable 304812580.55 408548136.24
Other payables 160296989.98 184528344.55
Other current liabilities 30291952.76 42665954.11
Long-term borrowings 209400848.04 608190812.09
The group uses sensitivity analysis techniques to analyze the possible impact of reasonable and possible changes in risk
variables on the current profit or loss and shareholders' equity. As any risk variable seldom changes in isolation and the
correlation between the variables will have a significant effect on the final affected amount of the change of a risk
variable the following contents are carried out under the assumption that the change of each variable is independently:
1. Risk management objectives policies and procedures and changes in the current year
The group's objective in risk management is to achieve an appropriate balance between risk and return minimize the
negative impact of risk on the group's operating performance and maximize the interests of shareholders and other
equity investors. Based on this risk management objective the basic strategy of the group's risk management is to
identify and analyze various risks faced by the group establish an appropriate risk tolerance bottom line and conduct
risk management and timely and reliably supervise various risks to control risks within a limited scope.- 87 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(X) Risks related to financial instruments - continued
1. RISK MANAGEMENT OBJECTIVES POLICIES AND PROCEDURES AND CHANGES IN THE
CURRENT YEAR - CONTINUED
1.1 MARKET RISK
1.1.1 FOREIGN EXCHANGE RISK
Foreign exchange risk refers to the risk of losses arising from the exchange rate fluctuation. The Group's exposure to
foreign exchange risk is mainly related to the USD the JPY and the HKD. Except for some of the Group's import
purchases and export sales in Chinese mainland which were mainly settled in USD JPY and HKD the Group's other
major business activities were settled in RMB.As of December 31 2024 except for the foreign currency monetary items in Note (V) 57 the assets and liabilities of
the Group were all in RMB. The foreign currency balances of assets and liabilities (converted into RMB) listed in the
table below may expose the Group to foreign exchange risks that could impact its operating performance.RMB
Balance as at the end of the current
Item year
Assets Liabilities
USD 79707825.58 24652381.57
JPY 43190341.28 147245305.47
HKD 1019977.70 41508.35
The Group closely monitors the impact of exchange rate changes on the Group's foreign exchange risk and will take
measures to avoid foreign exchange risk according to the actual situation.Sensitivity analysis of foreign exchange risk
With other variables unchanged the pre-tax impact of reasonable changes in exchange rates on the current profit or loss
and shareholders' equity is as follows:
RMB
CURRENT YEAR PREVIOUS YEAR
ITEM FLUCTUATION INEXCHANGE RATE IMPACT ON IMPACT ON IMPACT ON IMPACT ONPROFIT SHAREHOLDERS PROFIT SHAREHOLDERS
' EQUITY ' EQUITY
ALL
FOREIGN REVALUATION
CURREN AGAINST RMB BY (2401052.54) (2401052.54) (11522564.42) (11522564.42)
CIES 5%
ALL
FOREIGN DEPRECIATION
CURREN AGAINST RMB BY 2401052.54 2401052.54 11522564.42 11522564.42
CIES 5%
1.1.2. Interest rate risk - risk of changes in cash flows
The Group's risk of changes in cash flows of financial instruments due to changes in interest rates is mainly related to
bank borrowings with floating rates. The Group continues to closely monitor the impact of interest rate changes on the
Group's interest rate risk. The Group's policy is to maintain the floating rate of these borrowings and there are currently
no interest rate swap arrangements.- 88 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(X) Risks related to financial instruments - continued
1. RISK MANAGEMENT OBJECTIVES POLICIES AND PROCEDURES AND CHANGES IN THE
CURRENT YEAR - CONTINUED
1.1 MARKET RISK - CONTINUED
1.1.2. Interest rate risk - risk of changes in cash flows - continued
SENSITIVITY ANALYSIS OF INTEREST RATE RISK:
WITH OTHER VARIABLES UNCHANGED THE PRE-TAX IMPACT OF REASONABLE CHANGES IN
INTEREST RATES ON THE CURRENT PROFIT OR LOSS AND SHAREHOLDERS' EQUITY IS AS FOLLOWS:
RMB
CURRENT YEAR PREVIOUS YEAR
FLUCTUATION
ITEM IN EXCHANGE IMPACT ON IMPACT ON IMPACT ON IMPACT ON
RATE PROFIT SHAREHOLDER PROFIT SHAREHOLDER
S' EQUITY S' EQUITY
FLOATING
RATE UP 1% (2092051.50) (2092051.50) (6154214.55) (6154214.55)
BORROWINGS
FLOATING
RATE DOWN 1% 2092051.50 2092051.50 6154214.55 6154214.55
BORROWINGS
1.2. Credit risk
As of December 31 2024 the maximum credit risk exposure that may cause financial losses to the Group mainly comes
from the losses of the Group's financial assets due to the failure of the other party to the contract to perform its
obligations including: monetary funds financial assets held for trading notes receivable accounts receivable
receivables financing and other receivables. On the balance sheet date the book value of the Group's financial assets
represents its maximum credit risk exposure.In order to reduce the credit risk the Group arranges special personnel to determine the credit line conduct credit
approval and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue
debts. In addition the Group reviews the recovery of financial assets on each balance sheet date to ensure that adequate
provision for credit losses has been made for the relevant financial assets. Therefore the management of the Group
believes that the credit risk assumed by the Group has been greatly reduced.The Group's monetary funds are deposited in banks with high credit ratings so the monetary funds only have low credit
risk.As of December 31 2024 the balance of accounts receivable from the top five customers of the Group was RMB
559026608.51 accounting for 61.96% of the balance of accounts receivable of the Group. In addition the Group has
no other significant credit risk exposure concentrated in a single financial asset or a portfolio of financial assets with
similar characteristics.
1.3. Liquidity risk
When managing liquidity risk the Group maintains cash and cash equivalents that the management believes are
sufficient and monitors them to meet the Group's operational needs and reduce the impact of fluctuations in cash flows.The Group's management monitors the use of bank borrowings and ensures compliance with loan agreements.- 89 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(X) Risks related to financial instruments - continued
1. RISK MANAGEMENT OBJECTIVES POLICIES AND PROCEDURES AND CHANGES IN THE
CURRENT YEAR - CONTINUED
1.3. Liquidity risk - continued
AS AT DECEMBER 31 2024 THE UNUSED COMPREHENSIVE BANK CREDIT LINE OF THE GROUP WAS
RMB 1380340000
THE GROUP'S FINANCIAL LIABILITIES HELD ARE PRESENTED AS FOLLOWS BASED ON THE MATURITY
OF UNDISCOUNTED REMAINING CONTRACTUAL OBLIGATIONS:
RMB
Item Within 1 year 1 - 5 years Over 5 years Total
Notes payable 31095540.29 - - 31095540.29
Accounts payable 304812580.55 - - 304812580.55
Other payables 160296989.98 - - 160296989.98
Other current liabilities 30291952.76 - - 30291952.76
Long-term borrowings 52192649.82 169663448.78 - 221856098.60
Lease liabilities 7411263.65 7808943.06 3098158.97 18318365.68
Derivative financial
liabilities 1278559.35 - - 1278559.35
2. Transfer of financial assets
2.1 Classification of transfer methods
RMB
Transfer Nature of transferred Amount of
method financial assets transferred financial Derecognition Judgment basis for derecognition
assets
After the accounts receivable is factored the factor
Factoring Accounts receivable 59923300.74 Derecognized has no right to recover from the Group and almostall the risks and rewards of the ownership of the
accounts receivable have been transferred
The credit risk level of the acceptance bank of the
Transfer by Outstanding bank bank acceptance bill transferred by endorsement is
endorsemen acceptance bills classified 34926518.99 Derecognized relatively high and almost all the risks and
t as receivables financing rewards of the ownership of the corresponding
receivables financing have been transferred
The credit risk level of the acceptance bank of the
Transfer by Outstanding bank bank acceptance bill transferred by endorsement is
endorsemen acceptance bills classified 30291952.76 Not derecognized not high and almost all the risks and rewards of
t as notes receivable the ownership of the relevant notes receivable are
retained
Total 125141772.49
2.2 Financial assets derecognized due to transfer
RMB
Item Transfer method
Amount of Gains or losses
of financial assets derecognized related tofinancial assets derecognition
Receivables financing Transfer byendorsement 34926518.99 -
Accounts receivable Factoring 59923300.74 -
Total 94849819.73 -
- 90 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(X) Risks related to financial instruments - continued
2. Transfer of financial assets - continued
2.3 Transfer of financial assets with continued involvement
RMB
Amount of assets Amount of
Item Asset transfer arising from liabilities arisingmethod continued from continued
involvement involvement
Notes receivable Transfer byendorsement 30291952.76 30291952.76
Total 30291952.76 30291952.76（XI） Disclosure of fair value
1. Fair value of assets and liabilities measured at fair value at the end of the year
RMB
Fair value at the end of current year
Item Measured at the Measured at the Measured at the
fair value of the fair value of the fair value of the Total
1st level 2nd level 3rd level
Continuous fair value measurement
(I) Financial assets held for trading - 731419904.42 - 731419904.42
(II) Receivables financing - - 6804603.68 6804603.68
(III) Other equity instrument
investments - - 165402900.00 165402900.00
Total assets constantly measured at
fair value - 731419904.42 172207503.68 903627408.10
(IV) Derivative financial liabilities - 1278559.35 - 1278559.35
Total liabilities constantly measured
at fair value - 1278559.35 - 1278559.35
2. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-
sustainable items measured on the basis of fair value of level 2
RMB
Item Fair value at theend of current Valuation techniques Input value
year
Financial assets held
for trading 731419904.42
Discounted cash flow
method Expected rate of return
The contracted delivery exchange rate
Derivative financial 1278559.35 Discounted cash flow under forward foreign exchange contractsliabilities method and the market forward exchange rate as
of the balance sheet date
3. Qualitative and quantitative valuation techniques and important parameters of sustainable and non-
sustainable items measured on the basis of fair value of level 3
RMB
Item Fair value at the endof current year Valuation techniques Input value
Receivables financing 6804603.68 Discounted cash flow method Discount rate
Comparable Public Company Method P/B ratio of similar listedOther equity instrument
investments 165402900.00
companies
Comparable earnings method Market price
Statement adjustment method Book value
- 91 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XI) Disclosure of fair value
Disclosure of fair value - continued
4. Condition of fair value of financial assets and financial liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include: monetary funds notes receivable accounts
receivable other receivables notes payable accounts payable other payables other current liabilities and long-term
borrowings etc.The Group's management believes that the book value of financial assets and financial liabilities measured at amortized
costs in the financial statements is close to the fair value of such assets and liabilities.（XII） Related parties and related party transactions
1. Parent company
Registered Proportion of voting
Name Registration place Business nature capital Parent company'sshareholding ratio in rights of the parent(RMB '0000) the Company (%) company in theCompany (%)
Floor 18 Investment Equity
Shenzhen Investment Holdings Building Shennan investments
Co. Ltd. Road Futian District real estate 3318600.00 46.21 46.21
Shenzhen development etc.Parent company of the Company: the parent company of the Company is a wholly state-owned company approved and
authorized by the Shenzhen Municipal Government which exercises the functions of the investor in accordance with the
law for the state-owned enterprises within the authorized scope.During the reporting period the registered capital of the parent company changed as follows:
RMB '0000
Balance at the beginning Increase in current year Decrease in current year Balance as at the end ofof the year the current year
3235900.0082700.00-3318600.00
2. Subsidiaries
See Note (VIII) 1 for details of the subsidiary.
3. Joint ventures and associates of the Company
See Note (V) 10 for details of the Company's joint ventures and associates.- 92 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XII) Related parties and related party transactions - continued
4. Other related parties of the Company
Name of related party Relationship with the Company
Shenzhen Xinfang Knitting Factory Co. Ltd. The Company's participated company whose chairman is appointed by theGroup
Shenzhen Dailisi Underwear Co. Ltd. The Company's participated company whose chairman is appointed by theGroup
Hengmei Optoelectronics Co. Ltd. Minority shareholder of the Company's subsidiary SAPO Photoelectric; one ofthe directors of the company is a supervisor of SAPO Photoelectric
Shenzhen Shentou Property Development Co. Ltd. Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Seg Longyan Energy Technology Co. Ltd. Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Guoren P&C Insurance Co. Ltd. Shenzhen Branch Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Talent Service Center (Shenzhen Talent Market) Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Property Management Co. Ltd. Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Cultural Enterprise Development Co. Ltd. Subsidiary of the parent company of the Company Shenzhen Investment
(Headquarters) Holdings Co. Ltd.Shenzhen Investment Holdings Development Co. Ltd. Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Investment Holdings Digital Technology Co. Subsidiary of the parent company of the Company Shenzhen Investment
Ltd. Holdings Co. Ltd.Shenzhen Talent Recruitment International Co. Ltd. Subsidiary of the parent company of the Company Shenzhen Investment
(Headquarters) Holdings Co. Ltd.Shenzhen Leaguer Education Co. Ltd. (Headquarters) Subsidiary of the parent company of the Company Shenzhen InvestmentHoldings Co. Ltd.Shenzhen Legal Training Center Co. Ltd. Subsidiary of the parent company of the Company Shenzhen Investment
Holdings Co. Ltd.Shenzhen Investment Holdings Sports Event Development Subsidiary of the parent company of the Company Shenzhen Investment
Co. Ltd. Holdings Co. Ltd.Shenzhen Investment Building Hotel Co. Ltd. Subsidiary of the parent company of the Company Shenzhen Investment
Holdings Co. Ltd.Shenzhen Investment Building Property Management Co. Subsidiary of the parent company of the Company Shenzhen Investment
Ltd. Holdings Co. Ltd.
5. Related party transactions
(1) Procurement of goods/receipt of labor services
Related party Related party transactions Amount for the Amount for thecurrent year previous year
Shenzhen Seg Longyan Energy Technology Co. Ltd. Purchase of electricity 1146803.41 1075289.19
Guoren P&C Insurance Co. Ltd. Shenzhen Branch Insurance premiums 285104.25 -
Shenzhen Cultural Enterprise Development Co. Ltd.(Headquarters) Exhibition fees 136298.00 -
Shenzhen Talent Service Center (Shenzhen Talent
Market) Outsourcing service fee 125596.14 -
Shenzhen Investment Holdings Sports Event
Development Co. Ltd. Marketing expenses 80000.00 -
Shenzhen Investment Holdings Digital Technology
Co. Ltd. Information construction 78655.84 -
Shenzhen Investment Holdings Development Co. Ltd. Rental 65786.40 -
Shenzhen Property Management Co. Ltd. Property management fee 47258.75 -
Shenzhen Legal Training Center Co. Ltd. Training expenses 34597.00 -
Shenzhen Leaguer Education Co. Ltd. (Headquarters) Training expenses 20449.02 -
Shenzhen Guanhua Printing and Dyeing Co. Ltd. Interest expenses 9025.99 16237.39
Shenzhen Talent Recruitment International Co. Ltd.(Headquarters) Training expenses 7000.00 -
Hengmei Optoelectronics Co. Ltd. Optical film materials andprocessing 2874.60 4540435.30
Total 2039449.40 5631961.88
- 93 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XII) Related parties and related party transactions - continued
5. Related party transactions - continued
(2) Sale of goods
RMB
Related party Related party Amount for the Amount for thetransactions current year previous year
Hengmei Optoelectronics Co. Ltd. Polarizer - 4744631.12
Shenzhen Investment Building Hotel
Co. Ltd. Textiles - 163729.20
Shenzhen Shentou Property
Development Co. Ltd. Textiles - 65634.51
Shenzhen Investment Building
Property Management Co. Ltd. Textiles - 35522.12
Shenzhen Investment Holdings Co.Ltd. Textiles - 15371.68
Total - 5024888.63
(3) Loans from and to related parties
RMB
Related party Amountborrowed Start date Maturity date Notes
Borrowed from
Shenzhen Guanhua Printing and Dyeing 3806454.17 2019.07.30 2025.07.31 Annual interestCo. Ltd. rate 0.15%
(4) Remuneration of key officers
RMB
Item Amount for the current year Amount for the previous year
Remuneration of key officers 6932991.00 8557258.00
6. Accounts receivable accounts payable to related parties and other unsettled items
(1) Receivables
RMB
Balance as at the end of the Balance as at the end of the
Project Related party current year previous year
Book balance Provision for Book balance Provision forbad debts bad debts
Accounts Shenzhen Shentou Property
receivable Development Co. Ltd. 6027.00 602.70 6027.00 602.70
Other receivables Shenzhen Dailisi UnderwearCo. Ltd. 1100000.00 55000.00 1100000.00 58850.00
Other receivables Shenzhen Investment HoldingsDevelopment Co. Ltd. 73096.00 3910.64 - -
Other receivables Shenzhen Guanhua Printing andDyeing Co. Ltd. - - 41325.00 -
Total 1173096.00 58910.64 1141325.00 58850.00
- 94 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XII) Related parties and related party transactions - continued
6. Accounts receivable accounts payable to related parties and other unsettled items - continued
(2) Payables
RMB
Project Related party Balance as at the end of Balance as at the end ofthe current year the previous year
Other payables Shenzhen Guanhua Printing and DyeingCo. Ltd. 3816981.88 3811272.20
Shenzhen Changlianfa Printing and
Dyeing Co. Ltd. 2281299.95 2023699.95
Shenzhen Xinfang Knitting Factory Co.Ltd. 244789.85 244789.85
Shenzhen Investment Holdings Co. Ltd. - 485189.00
Shenzhen Investment Holdings Sports
Event Development Co. Ltd. 80000.00 -
Shenzhen Investment Holdings Digital
Technology Co. Ltd. 37735.84 -
Shenzhen Investment Holdings
Development Co. Ltd. 29238.40 -
Shenzhen Property Management Co. Ltd. 7934.52 -
Yehui International Co. Ltd. - 1124656.60
Total 6497980.44 7689607.60（XIII）Commitments and contingencies
1. Important commitments
(1) Capital commitments
RMB
Item Amount at the end of Amount at the end ofcurrent year previous year
Contracted but not recognized in the financial
statements
- Commitment to purchase and construct long-term
assets 53374.76 2413823.52
2. Contingencies
As of December 31 2024 the Group had no contingencies such as pending litigations and external guarantees to be
discolsed.- 95 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024（XIV）Events after the balance sheet date
1. Profit distribution after the balance sheet date
On March 26 2025 the profit distribution proposal for the year 2024 was approved by the Board of the Company. It is
proposed that the Company distribute cash dividends of RMB 0.71 per share (tax inclusive) to all shareholders based on
the total share capital of 506521849 shares as of December 31 2024 resulting in total cash dividends of RMB
35963051.28 (tax inclusive). The profit distribution plan is subject to the consideration and approval of the Company's
General Meeting.RMB
Item Amount
Profit or dividend to be distributed 35963051.28
Profit or dividend declared to be granted upon deliberation and approval -（XV） Other significant matters
1. Segment information
(1) Determination basis and accounting policies for reporting segments
According to the internal organizational structure management requirements and internal reporting system of the Group
the Group's operating business is divided into two operating segments. The management of the Group regularly
evaluates the operating results of these segments to decide on the allocation of resources to them and evaluate their
performance. On the basis of operating segments the Group has identified the following two reporting segments
polarizer business property leasing business and other business.Information on segment reporting is disclosed according to the accounting policies and measurement standards adopted
by each segment when reporting to the management and these measurement bases are consistent with the accounting
and measurement bases when preparing the financial statements.
(2) Financial information of reporting segments
RMB
Current year or end Polarizer Property leasing andof current year others Offset Total
Operating revenue:
Revenue from
external 3219211416.65 116071592.03 - 3335283008.68
transactions
Revenue from
transactions - 4239345.09 (4239345.09) -
between segments
Total operating
revenue of 3219211416.65 120310937.12 (4239345.09) 3335283008.68
segments
Operating expenses
(Note) 3007500292.36 95037109.98 (3900557.86) 3098636844.48
Operating profit 136015568.69 (20628307.04) 36389537.55 151776799.20
Net profit 134120025.66 (15831104.78) 24767845.50 143056766.38
Total assets of
segments 4031861994.76 3149618569.49 (1949330166.92) 5232150397.33
Total liabilities of
segments 835237595.88 191159171.74 (29567004.42) 996829763.20
Note: this item includes operating costs taxes and surcharges G&A expenses R&D expenses selling and distribution
expenses and financial expenses.- 96 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XV) Other significant events - continued
2. Other significant events affecting the decision-making of investors
(1) Real estate not yet disposed of by Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as
"Shenzhen Xieli")
Our company has invested with Hong Kong Xieli Maintenance Company (hereinafter referred to as "Hong Kong Xieli")
to establish a Sino foreign joint venture Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as
"Shenzhen Xieli"). In March 2020 Shenzhen Xieli was deregistered by the Shenzhen Municipal Administration for
Market Regulation. In July 2020 our company filed an administrative action with the Yantian District People's Court in
Shenzhen Guangdong Province to revoke the approval of the Shenzhen Market Supervision Administration for the
cancellation of Shenzhen Xieli.In December 2022 the People's Court of Yantian District Shenzhen Guangdong Province reviewed the first instance
judgment and revoked the administrative action approving the cancellation of Shenzhen Xieli's registration. In January
2023 the third party in the original trial Hong Kong Xieli appealed to the Shenzhen Intermediate People's Court in
Guangdong Province. Later due to Hong Kong Xieli's failure to pay the case acceptance fee in advance the Shenzhen
Intermediate People's Court issued an administrative ruling ruling that the appeal should be withdrawn by Hong Kong
Xieli. The retrial judgment of the first instance has taken effect on March 22 2023. At present Shenzhen Xieli has
resumed its business registration status but its future direction still needs to be negotiated among all shareholders.（XVI）Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Disclosure by aging
RMB
Aging Book balance at the end Book balance at theof the year beginning of the year
Within 1 year 10649986.34 10190859.62
1-2 years - -
2 to 3 years - 2485076.00
3 - 4 years 2485076.00 -
Total 13135062.34 12675935.62
(2) Disclosure by provision method for bad debts
RMB
Balance as at the end of the current year
Category Book balance Provision for bad debts
Amount Ratio (%) Amount Provision ratio Book value(%)
Provision for bad debts - - -
accrued on an individual - -
basis
Provision for bad debts
made by portfolio 13135062.34 100.00 106074.71 0.81 13028987.63
Total 13135062.34 100.00 106074.71 13028987.63
- 97 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XVI) Notes to the main items of the parent company's financial statements - continued
1. Accounts receivable - continued
(2) Disclosure by provision method for bad debts - continued
RMB
Balance as at the end of the previous year
Category Book balance Provision for bad debts
Amount Ratio (%) Amount Provision ratio Book value(%)
Provision for bad debts
accrued on an individual - - - - -
basis
Provision for bad debts
made by portfolio 12675935.62 100.00 4311.97 0.03 12671623.65
Total 12675935.62 100.00 4311.97 12671623.65
As of December 31 2024 accounts receivable with provision for bad debts accrued on a portfolio basis:
RMB
Balance as at the end of the current year
Aging Expected average Provision for bad
loss rate (%) Book balance debts Book value
Within 1 year 1.00 10649986.34 106074.71 10543911.63
3 - 4 years - 2485076.00 - 2485076.00
Total 13135062.34 106074.71 13028987.63
As of December 31 2024 provision for bad debts is made based on the simplified expected credit losses model
RMB
Whole duration Whole duration
Provision for bad debts Expected credit losses Expected credit losses Total
(No credit loss) (With credit loss)
Balance at the beginning of the
year 4311.97 - 4311.97
Balance at the beginning of the
year - - -
- Transfer to credit loss
incurred - - -
- Reversal of credit loss not
incurred - - -
Withdrawal in the current year 101762.74 - 101762.74
Reversal in the current year - - -
Charge-off in the current year - - -
Write-off in the current year - - -
Other changes - - -
Balance as at the end of the
current year 106074.71 - 106074.71
(3) Provision for bad debts
RMB
Balance at the Changes in the current year Balance as at the
Type beginning of the Provision Recovery or Resale or write- Other changes end of the currentyear reversal off year
Provision for bad
debts 4311.97 101762.74 - - - 106074.71
There was no significant amount of provision for bad debts recovered or reversed this year.- 98 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XVI) Notes to the main items of the parent company's financial statements - continued
1. Accounts receivable - continued
(4) There are no accounts receivable with actual write-off this year.
(5) Top five entities in terms of the ending balance of accounts receivable by debtor
RMB
Provision for bad
At the end of debts
Entity name current year Ratio in total
Book balance accounts
Balance as at the
receivable (%) end of the currentyear
Total amount of the top five accounts receivables as
of December 31 2024. 13003135.50 99.00 100734.39
2. Other receivables
(1) Disclosure by aging
RMB
Aging Balance as at the end Balance as at the endof the current year of the previous year
Within 1 year 15129726.66 1683810.52
1-2 years 273000.00 2213073.28
2 to 3 years 2204641.09 10100800.01
Over 3 years 25380195.11 15279395.10
Total 42987562.86 29277078.91
Less: provision for bad debts 41453167.06 15263525.96
Book value 1534395.80 14013552.95
(2) Disclosure by nature of payment
RMB
Book balance at the
Nature of payment Book balance at theend of the year end of the previousyear
Transactions with related parties within the consolidation scope 26189641.10 12553241.09
Transactions with external units 15422435.97 15349339.97
Guarantee and deposits 10000.00 10000.00
Others 1365485.79 1364497.85
Total 42987562.86 29277078.91
(3) Provision for bad debts
As of December 31 2024 provision for bad debts shall be made according to the credit risk characteristic combination
RMB
Balance as at the end of the current year
Phase Expected average loss Book balance Provision for badrate (%) debts Book value
Provision for bad debts based on
credit risk characteristic
combination 96.43 42987562.86 41453167.06 1534395.80
Provision for other receivables
- 99 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XVI) Notes to the main items of the parent company's financial statements - continued
2. Other receivables - continued
(3) Provision for bad debts - continued
As of December 31 2024 the credit risk and provision for bad debts of other receivables are as follows:
RMB
Balance as at the end of the current year
Aging Expected average
loss rate (%) Book balance
Provision for bad
debts Book value
Within 1 year 90.62 15129726.66 13711066.34 1418660.32
1-2 years 100.00 273000.00 273000.00 -
2 to 3 years 100.00 2204641.09 2204641.09 -
Over 3 years 99.54 25380195.11 25264459.63 115735.48
Total 42987562.86 41453167.06 1534395.80
(4) Changes in provision for bad debts
RMB
Balance at the Changes in the current year Balance as at the
Type beginning of the Provision Recovery or Resale or Other changes end of theyear reversal write-off current year
Provision for bad debts 15263525.96 26189641.10 - - - 41453167.06
(5) There were no other receivables actually written off this year.
(6) Top five entities in terms of ending balance of other receivables by debtors
RMB
Other Provision for
receivables bad debts
Entity name Nature of payment Balance as at Aging Ratio in the total
the end of the ending balance of
Balance as at
the end of the
current year other receivables inthe current year (%) current year
Total amount of the top five Receivables fromexternal entities Within 1 year 1 - 2other receivables as of and internal 41496981.06 years 2 - 3 years over 96.53 40514681.06December 31 2024. receivables 3 years
3. Long-term equity investments
RMB
Balance as at the end of the current year Balance as at the end of the previous year
Item
Book balance Provision forimpairment Book value Book balance
Provision for
impairment Book value
Investment in
subsidiaries 1962688268.31 36826287.64 1925861980.67 1976433419.39 16582629.30 1959850790.09
Investments in joint
ventures 111555887.28 - 111555887.28 122370494.08 - 122370494.08
Investments in
associates 3272138.76 - 3272138.76 5311526.62 - 5311526.62
Total 2077516294.35 36826287.64 2040690006.71 2104115440.09 16582629.30 2087532810.79
- 100 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
Year ended December 31 2024
(XVI) Notes to the main items of the parent company's financial statements - continued
3. Long-term equity investments - continued
(1) Investment in subsidiaries
RMB
Investees Balance at the beginning Increase in Decrease in
Provision for Provision for impairment
of the year current year current year impairment in the
Balance as at the end of Balance as at the end of the
current year the current year current year
SAPO Photoelectric 1910247781.94 - - - 1910247781.94 14415288.09
Shenzhen Lisi Industrial Development Co.Ltd. 8073388.25 - - - 8073388.25 -
Shenzhen MCENTURY Garment Co. Ltd. 18499458.34 1744200.00 - 20243658.34 - 22410999.55
Shenzhen Huaqiang Hotel Co. Ltd. 15489351.08 - 15489351.08 - - -
Shenzhen Shenfang Property Management
Co. Ltd. 1713186.55 - - - 1713186.55 -
Shenzhen Shenfang Sungang Property
Management Co. Ltd. 5827623.93 - - - 5827623.93 -
Total 1959850790.09 1744200.00 15489351.08 20243658.34 1925861980.67 36826287.64
(2) Investment in associates and joint ventures
RMB
Changes in the current year Provision for
Balance at the Investment profit Other Cash dividends Provision Balance as at impairment
Investees beginning of Additional Reduced or loss recognized comprehensi Otherve changes in or profits Provision Othe the end of the Balance as atthe year investment investment under the equity
method income equity
declared to be for rs current year the end of the
adjustment paid impairment current year
Joint ventures
Shenzhen Guanhua Printing
and Dyeing Co. Ltd. 122370494.08 - - (10814606.80) - - - - - 111555887.28 -
Sub-total 122370494.08 - - (10814606.80) - - - - - 111555887.28 -
Associates
Shenzhen Changlianfa
Printing and Dyeing Co. 3358117.09 - - 260171.67 - - 346150.00 - - 3272138.76 -
Ltd.Yehui International Co.Ltd. 1953409.53 - 1805949.58 (147459.95) - - - - - - -
Sub-total 5311526.62 - 1805949.58 112711.72 - - 346150.00 - - 3272138.76 -
Total 127682020.70 - 1805949.58 (10701895.08) - - 346150.00 - - 114828026.04 -
- 101 -Shenzhen Textile (Holdings) Co. Ltd.Notes to the financial statements
For the year ended December 31 2023
(XVI) Notes to the main items of the parent company's financial statements - continued
4. Operating revenue and operating costs
(1) Operating revenue and operating costs
RMB
Item Amount for the current year Amount for the previous yearRevenue Cost Revenue Cost
Primary business 77167496.95 10205157.84 77822508.75 9822306.53
(2) Income from primary business and cost of primary business by product
RMB
Amount for the current year Amount for the previous year
Products Income from Cost of primary Income from Cost of primary
primary business business primary business business
Property leasing 77167496.95 10205157.84 77822508.75 9822306.53
(3) Income from primary business and cost of primary business by region
RMB
Amount for the current year Amount for the previous year
Region Income from Cost of primary Income from Cost of primary
primary business business primary business business
Domestic 77167496.95 10205157.84 77822508.75 9822306.53
5. Investment income
RMB
Item Amount for the Amount for thecurrent year previous year
Long-term equity investment income calculated under the equity
method (10701895.08) (6898983.89)
Income from long-term equity investments under cost method 4700000.00 9989533.92
Investment income from disposal of long-term equity investments 5838587.94 -
Investment income obtained during holding the financial assets
held for trading 10795474.10 14816230.07
Dividend income from investments in other equity instrument
during the holding period 1445735.85 1393735.85
Total 12077902.81 19300515.95
- 102 -Shenzhen Textile (Holdings) Co. Ltd.Supplementary information
Year ended December 31 2024
1. Breakdown of current non-recurring profit or loss
According to the Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the
Public - Non-recurring Profit or Loss (Revision 2023) (hereinafter referred to as "Interpretive Announcement No. 1")
issued by the China Securities Regulatory Commission the Group's non-recurring profit or loss for 2024 are as follows:
RMB
Item Amount for thecurrent year
Profit or loss from disposal of non-current assets including the writing-off part for which
the asset impairment provision is made 833613.28
Government grants included in the current profit or loss (except for those that are closely
related to the Company's normal business operations comply with national policies and
regulations are enjoyed according to determined standards and have a sustained impact on 10454530.12
the Company's profit or loss)
Profit or loss from changes in fair value of financial assets and liabilities held by non-
financial enterprises and profit or loss from the disposal of financial assets and financial (5319496.55)
liabilities except for effective hedging operations related to the Company's normal
business operations
Reversal of provision for impairment of accounts receivable subject to separate
impairment test 13927792.63
Non-operating revenue and expenses other than the above-mentioned items 1107069.21
Total non-recurring profit or loss 21003508.69
Less: income tax effect of non-recurring profit or loss 2998978.10
Net amount of non-recurring profit or loss 18004530.59
Less: net effect of non-recurring profit or loss attributable to minority shareholders
(after tax) 5661882.11
Non-recurring profit or loss attributable to the Company's ordinary shareholders 12342648.48
2. Return on net assets and earnings per share
This return on net assets and earnings per share table is prepared by Shenzhen Textile (Holdings) Co. Ltd. in accordance
with the Rules for the Compilation and Reporting of Information Disclosure by Companies Issuing Securities in Public
(No. 9) - Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revision 2010) issued by the
China Securities Regulatory Commission.RMB
Earnings per share
Profit in the reporting period Weighted averagerate of return on net Basic earnings per Diluted earnings per
assets share share
Net profit attributable to ordinary
shareholders of the COOEC 3.06 0.18 0.18
Net profit attributable to ordinary
shareholders of the Company after 2.64 0.15 0.15
deducting non-recurring profit or loss
Shenzhen Textile (Holdings) Co. Ltd.Board of Directors
March 28 2025
沪公网安备31011802005267号
