Shenzhen Textile (Holdings) Co. Ltd.The Semi-Annual Report 2022
August 2022
1Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
I. Important Notice Table of Contents and Definitions
The Board of Directors， the Supervisory Committee the directors the supervisors and executives of theCompany guarantee that there are no significant omissions fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness accuracy and completeness of
the Report.Mr.Yin Kefei The Company leader Mr. He Fei Chief financial officer and the Ms.Zhu Jingjing the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the semi-report.All the directors attended the board meeting for the review of this Report.Concerning the forward-looking statements with future planning involved in the Report they do not constitute a
substantial commitment for investors Investors and related persons shall keep sufficient risk awareness and shall
understand the differences between plans forecasts and commitments and remind investors of investment risks.The company has the macroeconomic risks market competition risks and raw material risks. Investors are advised
to pay attention to investment risks. For details please refer to the possible risk factors that the company may face
in the X "Risks facing the Company and countermeasures " in the Section III "Management Discussion &
Analysis".The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.This Report has been prepared in both Chinese and English. In case of any discrepancy the Chinese version shall
prevail.
2Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Table of Contents
I.Important Notice Table of contents and Definitions
II. Company Profile & Financial Highlights.III. Management Discussion &Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
3Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Documents available for inspection
I. Accounting statements carried with personal signatures and seals of legal representative General Manager
Chief Financial officer.II. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.III. Other relative documents.The above documents were completely placed at the Office of Secretaries of the Board of Directors of the
Company.
4Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co. Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co.Ltd
Actual controller / National Assets
Regulatory Commission of Shenzhen Refers to National Assets Regulatory Commission of Shenzhen
Municipal People's Government Municipal People's Government
The Controlling shareholder/ Shenzhen
Investment Holding Co. Ltd. Refers to Shenzhen Investment Holding Co. Ltd.Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co. Ltd.SAPO Photoelectric Refers to Shenzhen Shengbo Photoelectric Technology Co. Ltd.Jinjiang Group Refers to Hangzhou Jinjiang Group Co. Ltd.Nitto Denko Refers to Nitto Denko Corporation
Beauty Century Refers to Shenzhen Beauty Century Garment Co. Ltd.Shenzhen Xieli Refers to Shenzhen Xieli Auto Co. Ltd.Jinxin Investment Refers to Lanxi Jinxin Investment Management Co. Ltd.Changxing Junying Refers to Changxing Junying Eqkuity Investment Partnership（LP）
Huaiji Investment Refers to Hangzhou Huaiji Investment Management Co. Ltd.Jinhang Investment Refers to Hangzhou Jinhang Investment Fund Partnership（LP）
Line 4 Refers to T TFT-LCD polarizer II phase Line 4 project
Line 5 Refers to TFT-LCD polarizer II phase Line 5 project
Line 6 Refers to TFT-LCD polarizer II phase Line 6 project
Line 7 Refers to Industrialization project of polaroid for super large size TV
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to The Semi-annual Report 2022
5Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
II. Company Profile & Financial Highlights
I. Company Profile
Stock abbreviation Shen Textile A Shen Textile B Stock code 000045200045
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE (HOLDINGS) CO. LTD
English abbreviation (If any) STHC
Legal Representative Yin Kefei
Note: Zhang Jian the former Chairman of the Company resigned on August 2 2022. For details please refer to
the Company's Announcement on the Resignation of the Chairman of the Company (No.2022-23) on CNINF
(http://www.cninfo.com.cn). After the election of the 14th Meeting of the Eighth Board of Directors Yin Kefei
was elected as the Chairman of the Eighth Board of Directors and the legal representative of the Company. For
details please refer to the Company's Announcement on Resolution of the Fourteenth Meeting of the Eighth
Board of Directors (No.:2022-24) on CNINF (http://www.cninfo.com.cn).II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
Contact address 6/F Shenfang Building No.3 Huaqiang North 6/F Shenfang Building No.3 Huaqiang NorthRoad Futian District Shenzhen Road Futian District Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail jiangp@chinasthc.com lizy@chinasthc.com
III. Other
1.Way to contact the Company
Whether registrations address offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address office address and their postal codes website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2021 Annual Report.
2.Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses website and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2021.
6Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3. Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Not applicable
IV. Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 1445137309.09 1101536407.38 31.19%
Net profit attributable to the
shareholders of the listed company 42433525.10 76603074.39 -44.61%（RMB）
Net profit after deducting of non-
recurring gain/loss attributable to the
shareholders of listed company 34970975.47 61814528.89 -43.43%（RMB）
Cash flow generated by business
operation net（RMB） 79438234.59 -52643536.25 250.90%
Basic earning per share(RMB/Share) 0.0838 0.1509 -44.47%
Diluted gains per
share(RMB/Share)(RMB/Share) 0.0838 0.1509 -44.47%
Weighted average ROE(%) 1.50% 2.74% -1.24%
As at the end of the
reporting period As at the end of last year YoY+/-（%）
Total assets（RMB） 5690609337.03 5496647107.83 3.53%
Net assets attributable to shareholder of
listed company（RMB） 2833979078.56 2816795889.89 0.61%
V. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
7Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for
which assets impairment provision is made) -11114.72
Other benefits of
Govemment subsidy recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s government subsidies that10780654.48
policies) are confirmed related to the
main business.Other non-business income and expenditures other than the above It is mainly due to the1555024.76
compensation for losses.Less :Influenced amount of income tax 113018.21
Influenced amount of minor shareholders’ equity (after tax) 4748996.68
Total 7462549.63
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
8Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
III. Management Discussion &Analysis
I.Main Business the Company is Engaged in During the Report Period
(I)Main Business the Company is Engaged in During the Report Period
The company's main business covered such the high and new technology industry as represented by LCD
polarizer its own property management business and the retained business of high-end textile and garment.During the reporting period the Company's main business has not changed significantly. First the
Company continuously optimized the product structure. Since 2022 it has continuously optimized the product
structure and increased the market share of high-margin products through the adjustment of internal order
structure and flexible production; Second it continued to introduce new projects. Facing the downward market
expectation the Company mobilized resources to actively promote the implementation of new projects; Third it
continuously promoted lean management strictly controlled manufacturing costs reduced material loss
strengthened material recycling and achieved all-round cost reduction and efficiency improvement; Fourth it
fully promoted the project construction and ramp up of Line 7. At the end of last year it adjusted the operation
strategy of Line 7. In the first half of the year Line 7 was optimized and improved in terms of quality process
and equipment the product yield was greatly improved and the unit consumption of membrane materials and
chemicals gradually decreased; Fifth it focused on the safety guarantee of raw material supply chain and the
risk of price increase of chemical raw materials and sped up the evaluation and use of chemical alternative raw
materials; Sixth it strengthened the management of inventory and accounts receivable improved asset turnover
and reduced capital occupation; Seventh it jointly tackled with the pandemic actively fulfilled social
responsibilities and formulated the implementation plan of rent reduction and exemption for the Company and
its wholly-owned enterprises in combination with the actual business situation so as to tide over the difficulties
with the market subjects.During the reporting period the Company achieved operating income of RMB 1.445 billion with a year-
on-year increase of 31.19%; Realized a total profit of RMB 70445600 with a year-on-year decrease of 41.93%;
And achieved a net profit attributable to shareholders of listed companies of RMB 42433500 with a year-on-
year decrease of 44.61%. The main reasons for the decrease in net profit attributable to shareholders of listed
companies in this reporting period compared with the same period of last year are as follows: First the
Company's Line 7 was not put into production in the same period of last year and Line 7 entered the ramp up
stage after it was put into production in the second half of 2021. Higher depreciation and amortization of fixed
assets led to higher unit cost of products and the interest of project loans after Line 7 was transferred to fixed
assets was included in the profit and loss in this reporting period; Second this year in order to jointly cope with
the COVID-19 and actively fulfill their social responsibilities the Company and its wholly-owned enterprises
reduced or exempted the rental of eligible properties from March 1 2022 to August 31 2022 and the rental
income in this period decreased significantly year on year. During the reporting period technical indicators
such as yield and loss rate of Line 7 were further improved vehicle speed production and sales volume were
further enhanced and the business performance improved month by month. Excluding the incomparable factors
such as ramp up of Line 7 and rent reduction and exemption the Company overcame the adverse factors such
as the downward market and rising raw material prices further optimized the product and customer structure
and improved the lean management level. Compared with the same period of last year it maintained a stable
operating performance this reporting period.(II)Main products and their purposes
9Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Currently the Company has 7 mass production lines for polarizers covering TN STN TFT OLED 3D dye
sheet optical film for touch screen and other fields mainly used in TV NB navigator Monitor vehicle
industrial control instruments smart phones wearable devices 3D glasses sunglasses and other products，thecompany has become a mainstream panel company such as Huaxing Optoelectronics BOE Sharp LGD
Shenzhen Tianma Huike etc. by continuously strengthening sales channel expansion and building its own
brand. Qualified suppliers.The Company's main products made in each polarizer production line and their application are as follows:
Line Place Product breadth Planned capacity Main projuct
Line 1 Pingshan 500mm 600，000 m2 TN/STN/ Dye piece
Line 2 Pingshan 500mm 1.2 million m2 TN/STN/CSTN
Line 3 Pingshan 650mm 1 million m2 TFT
Line 4 Pingshan 1490mm 6 million m2 TFT
Line 5 Pingshan 650mm 2 millin m2 TFT
Line 6 Pingshan 1490mm 10 million m2 TFT/OLED
Line 7 Pingshan 2500mm 32 millin m2 TFT/OLED
(III)Company's business model
The polarizer industry has gradually shifted from a traditional business model of R&D production and sales
to a customer-centric joint research and development and comprehensive service business model. By
understanding customer needs joint research and develop manage high-standard production manufacture high-
quality products use advanced polarizer roll and attaching equipment to cooperate with downstream panel
manufacturers' production lines reduce production links reduce production and transportation costs and create
value for customers win-win.(IV) Major factors for driving the Company's performance
Refer to "III. Analysis on core competitiveness" in this section for details.(V) Market position of company products
Currently the Company is one of the major R&D production and sales enterprises of polarizers in China and
is the leading enterprise in the domestic polarizer industry. The Company mainly focuses on medium and large-
sized polarizer products and meanwhile has the production capacity of multi-size and multi-series products.In the future the Company will further adjust and optimize the product structure and customer structure
improve the internal management level optimize and upgrade the production technology level improve the
production efficiency and product quality broaden the procurement channels reduce the production cost and
consolidate and improve the market competitiveness.II. Analysis On core Competitiveness
(I) Technology advantages. SAPO Photoelectric is the first domestic national high-tech company which
entered into the R&D and production of the polarizer，We are one of the largest most technical and professionalpolarizer R&D teams in the country and has more than 20 years of operating experience in the polarizer industry.Products include TN-type STN-type IPS-TFT-type VA-TFT-type OLED vehicle-mounted industrial display
flexible display 3D stereo and polarizer for sunglasses and optical film for touch screens etc.We have
proprietary technology for polarizers and new intellectual property rights for various new products. As of the end
of this report SAPO Photoelectric applied for 119 invention patents and was authorized with 91 items among
10Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
which: 38 domestic invention patents(16 patents got authorized); 74 domestic utility model patents(71 patents got
authorized); 1 overseas invention patent(0 patents got authorized); 6 overseas utility model patents(4 patents got
authorized). There were 4 national standards and 2 industrial standards that were developed by the company are
approved and then will be implemented. will be implemented. SAPO Photoelectric has three innovative platforms:
Guangdong Engineering Technology Research Center Shenzhen Polarizing Materials and Technology
Engineering Laboratory and Shenzhen Enterprise Technology Center. It focuses on the R&D and industrialization
of LCD polarizer core production technology the development and industrialization of OLED polarizer new
products and the localization research of polarizer raw materials among which mass production has been
achieved for OLED TV polarizer products successfully filling the domestic gap. By introducing all kinds of
precision test equipment it improves lab trial and pilot-scale test methods and builds a collaborative innovation
platform for Industry-University-Research cooperation to enhance the R&D level comprehensively.(II) Talents advantages. The Company has a polarizer management team and a team of senior technicians with
strong technical ability long cooperation time rich experience and international vision. By establishing a
technical cooperation relationship with Nitto Denko Corporation a world-class polarizer manufacturer the
Company learns advanced polarizer production management concepts and meanwhile accumulates technical
experience through independent innovation improves its core competitiveness and gradually accumulates its own
brand technology operation management and other advantages. In 2022 the Company continued to deepen the
market-oriented reform practiced the concept of "Don't race horses" and set a good vane for talent selection and
employment; It improved the talent growth channel established the management method of employee promotion
by rank and helped employees grow and develop; It improved the incentive mechanism of assessment and fully
utilized the incentive and spur role of assessment; Actively explored the long-term incentive and restraint of the
Company's management level employee benefit award distribution mechanism Employee Stock Ownership Plan
(ESOP) etc. and built a value distribution mechanism of benefit sharing and risk pooling.
(III) Market advantages. The company has good customer groups not only in domestic market but in foreign
market compared with foreign advanced counterparts the biggest advantage lies in the localization for supporting
close to the panel market as well as the strong support of the national policy. In terms of market demand with the
mass production of the 10.5/11-generation TFT-LCD panel production lines under construction and planned for
the next few years the production capacity of high-generation TFT-LCD panels in mainland China will increase
significantly in the next few years the corresponding domestic polaroid film market demand has also increased
and the domestic market is the most important market for polaroid manufacturers especially in the large-size
polarizer market. Mainland polarizer manufacturers will usher in important industry opportunities; in terms of
market development the company takes production material control as the core technology services as the guide
customer needs as the focus organically combines production and sales establishes a rapid response mechanism
fully exploits localization advantages and uses its own accumulated technology and talents does a good job of
peer-to-peer professional services forms a stable supply chain and increases market share.(IV) Quality advantages. The company always adhered to the quality policy of "Satisfying customer demands
and pursuing excellent quality" and focused on product quality control. The company strictly controls product
performance indicators standardizes inspection standards for incoming materials starts with quality improvement
and consumption reduction and achieves simultaneous increase in output and quality; through the introduction of
a modern quality management system the products have passed ISO9001 Quality Management System and
ISO14001 Environmental Management System OHSAS18000 Occupational Health and Safety Management
System QCO80000 System Certification; the product is tested by SGS and meets the environmental
protection The company had increased the automatic detecting and marking equipments in the beginning section
and the ending section strictly controlled the product quality and improved the product utilization rate and
11Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
product management efficiency.(V) Management advantages. SAPO Photoelectric has accumulated rich management experiences in more
than 20 years in the manufacturing of polarizer possessing the home most advanced control technology of the
production management process of the polarizer and quality management technology and the stable raw material
procurement channel so forth management systems. The company had carried out comprehensive benchmarking
work organized the management personnel to learn advanced experiences from customers and peers to force the
elevation of management ability and drew on the foreign company’s management experiences of polarizer
optimized the company's organizational structure reduced the managerial hierarchy and further enhanced the
company's management efficiency. After the introduction of the strategic investor Through close cooperation with
Jinjiang Group we complement each other's strengths absorb the vitality of private enterprises continue to
implement advanced management systems reasonable incentive mechanisms etc. improve the efficiency of
decision-making enhance the speed of market response improve the research and development incentive system
and also realize the deep integration of the value of the company and its employees and stimulates the new vitality
of the business. Through the implementation of the key work management list of "Practical Party building + Lean
promoting development" continuous cost reduction and efficiency increase by lean means; through the
implementation of the "amoeba Business Model" project small independent accounting unit to enable the
grassroots key employees to participate in the production and operation activities.(VI) Policy advantages. Polarizer is seen as an essential part of the panel display industry and SAPO
Photoelectric in its development has promoted the supply capacity of national polarizers greatly lowered the
dependence of national panel enterprises on imported polarizers and safeguarded the national panel industry
which serves as a good facilitator to enhancing the overall competitiveness of China's panel industry chain and
coordinated development of the whole industry chain of the panel display industry cluster in Shenzhen.Recognized as a national high-tech enterprise the Company is entitled to the preferential policy for duty-free
import of own productive raw materials that cannot be produced at home and frequently gained national
provincial and municipal policy and financial support in its polarizer projects. Meanwhile the Company tightened
supplier management improved its overall purchasing strategy and downsized suppliers while introducing a
competitive mechanism wherein focus was given to introduction of new materials at a competitive price to
further lower its production cost and improve its product competitiveness.III. Main business analysis
General
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.Changes in the financial data
In RMB
YOY
This report period Same period last changeyear Cause change（%）
Operating revenue It is mainly due to the increase in revenue1445137309.09 1101536407.38 31.19%
caused by mass production of Line 7.Operating cost It is mainly due to the increase in cost caused1242988094.06 863125460.07 44.01%
by mass production of Line 7.Sale expenses 18355747.39 20493774.82 -10.43%
Administrative
expenses 61448188.86 55327660.76 11.06%
It is mainly due to the change of Japanese Yen
Financial
expenses -8833873.44 -9215033.48 -4.14% exchange rate and the increase significant in
exchange gains during the reporting period.
12Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Income tax It is mainly due to the policy rent reduction
expenses 340897.81 7878916.04 -95.67% during the reporting period.R & D Investment 34870992.66 29170093.39 19.54%
Cash flow It is mainly the increase caused by customers'
generated by
business 79438234.59 -52643536.25 250.90% early payment and receipt of government
operation net subsidy funds.Net cash flow
generated by It is mainly due to the lack of large investment-43613588.81 -140787048.49 -69.02%
investment projects in this period.Net cash flow
generated by It is mainly due to the lack of large financing in9714117.19 169127412.92 -94.26%
financing this period.Net increasing of It is mainly due to the year-on-year increase in
cash and cash 46252547.23 -25343472.73 -282.50% operating cash inflow during the reporting
equivalents period.Major changes in profit composition or sources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.Component of Business Income
In RMB
This report period Same period last year Increase
Amount Proportion Amount Proportion /decrease
Total operating
1445137309.09100%1101536407.38100%31.19%
revenue
On Industry
Manufacturing 1391737535.43 96.30% 1041558118.32 94.56% 33.62%
Lease and
Management of 33272224.20 2.30% 55866608.49 5.07% -40.44%
Property
Other 20127549.46 1.40% 4111680.57 0.37% 389.52%
On Products
Polarizer sheet 1369146600.89 94.74% 1021894566.16 92.77% 33.98%
Textile 22590934.54 1.56% 55866608.49 5.07% -59.56%
Lease and
Management of 33272224.20 2.30% 19663552.16 1.79% 69.21%
Property
Other 20127549.46 1.40% 4111680.57 0.37% 389.52%
Area
Domestic 1354987454.63 93.76% 949528109.45 86.20% 42.70%
Overseas 90149854.46 6.24% 152008297.93 13.80% -40.69%
Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/dec
Increase/decreas Increase/decreas rease of
Gross e of revenue in e of business gross profit
Turnover Operation cost profit the same period cost over the rate over the
rate(%) of the previous same period of same period
year(%) previous year of the(%) previous
year (%)
13Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
On Industry
Manufacturing 1391737535.43 1229319979.91 11.67% 33.62% 45.09% -6.98%
Lease and -10.22%
Management of 33272224.20 10682243.01 67.89% -40.44% -12.64%
Property
Other 20127549.46 2985871.14 85.17% 389.52% -17.33% 73.01%
On Products
Polarizer sheet 1369146600.89 1204852305.21 12.00% 33.98% 44.97% -6.67%
Textile 22590934.54 24467674.70 -8.31% 14.89% 51.46% -26.15%
Lease and
Management of 33272224.20 10682243.01 67.89% -40.44% -12.64% -10.22%
Property
Other 20127549.46 2985871.14 85.17% 389.52% -17.33% 73.01%
Area
Domestic 1354987454.63 1166831275.43 13.89% 42.70% 58.39% -8.52%
Overseas 90149854.46 76156818.63 15.52% -40.69% -39.76% -1.31%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business based on latest on year’s scope of period-end.□ Applicable √Not applicable
Explanation for a year-on –year change of over 30%
□Applicable √Not applicable
IV. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Amount Proportion in totalprofit Explanation of cause
Sustainable (yes or
no)
Obtaining equity enterprise dividends
Investment income 11043172.52 15.68% contract fees time deposit and money Have thesustainability
fund interest income
Gains and losses on
changes in fair 0.00 0.00% Have the
value sustainability
Impairment of Mainly from the provision of inventory Have the
assets -42073672.20 -59.73% depreciation loss. sustainability
Non-operating It is mainly due to the compensation for
income 1768115.05 2.51% Not sustainable.losses.Non-operating
expense 213090.29 0.30% Not sustainable.Have the
Other income 10780654.48 15.30% Mainly for government subsidies.sustainability
V. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year Change
in Reason forAs a percentage As a percentage significant
Amount of total Amount of total percenta change
assets(%) assets(%) ge(%)
Monetary fund 356600994.80 6.27% 302472828.60 5.50% 0.77%
Accounts
receivable 703849983.33 12.37% 479998708.57 8.73% 3.64%
14Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Inventories 781404848.10 13.73% 667461447.03 12.14% 1.59%
Real estate
Investment 102672477.07 1.80% 106217779.76 1.93% -0.13%
Long-term equity
investment 134756614.83 2.37% 133022325.77 2.42% -0.05%
Fixed assets 2375066361.03 41.74% 2424741252.86 44.11% -2.37%
Construction in
23222687.280.41%71482031.081.30%-0.89%
process
Right to use assets 16493135.66 0.29% 9221189.37 0.17% 0.12%
Short-term loans 22061861.12 0.39% 37575113.83 0.68% -0.29%
Contract
Liabilities 122759.15 0.00% 68955.21 0.00% 0.00%
Long-term loans 728782222.63 12.81% 683016243.25 12.43% 0.38%
Lease liabilities 8424816.86 0.15% 4243855.71 0.08% 0.07%
Financial assets
609244744.7210.71%586540735.1610.67%0.04%
transaction.Other receivable
7235875.220.13%140185750.402.55%-2.42%
account
2. Major overseas assets
□ Applicable √ Not applicable
3.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/l
oss on
fair Cumulat Impairm
Amount at value ive fairvalue ent Purchased Sold amount
Items changyear e in change
provisio amount in the in the Other Amount at
recorded ns in the reporting reporting changes year endthe reportin period period
beginning reporti into g period
ng equity
period
Financial
assets
1. Financial
assets
measured at
fair value
through profit 609244744
or loss 586540735.16 645704009.56 623000000.00 .72
(excluding
derivative
financial
assets)
4．Other
equity 186033829
Instrument 186033829.72 .72
Investment
Subtotal of
financial 795278574772574564.88 645704009.56 623000000.00
assets .44
Other non-
current 28500000.financial 30650943.40 -2150943.40 00
assets
Total 823778574803225508.28 645704009.56 623000000.00 -2150943.40.44
15Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Financial
Liability 0.00 0.00
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
4. Restricted asset rights as of the end of this Reporting Period
As of June 30 2022 the company's restricted assets are the L/C deposit and customs deposit of the subsidiary
SAPO Photoelectric and the mortgaged assets of the subsidiary SAPO Photoelectric for mortgage loan
application from the syndicate led by Shenzhen Branch of Bank of Communications. For details please refer to
"Section X Financial Report VII Notes 81 to Consolidated Financial Statements Item Assets with Restricted
Ownership or Use Right" in this report.VI. Analysis on investment Status
1. General
□ Applicable √ Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
16Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
2.Sales of major equity
VIII. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the
Company
In RMB
Company Typ Main Registered Operating
name e business capital Total assets Net assets Turnover profit Net Profit
Shenzhen Producti
SAPO Subs on and
Photoelect idiar sales of 583333333.0 4400059283.7 2925112224.5 13905849 67311121.92 6887364
ric Co. y polarize 0 6 0 01.04 4.92
Ltd. r
Producti
on of
Shenzhen fully
Beauty Subs electroni -
Century idiar c 13000000.00 50663794.27 13831114.66 22742894. -4416615.83 4407303.Garment y jacquard 72 85
Co. Ltd. knitting
whole
shape
Shenzhen Domesti
Lisi Subs c Trade -
Industrial idiar Property 2360000.00 34901327.67 27907335.13
2543367.0-994627.29913775.2
Co. Ltd. y manage
12
ment
Accom
Shenzhen Subs modatio
Huaqiang idiar n 10005300.00 22267549.72 20426549.04 236085.42 59839.13 58344.15
Hotel y business
center;
Shenzhen
Shenfang
Sungang Subs Property
Property idiar manage 1000000 11023824.75 8251941.20 948354.49 -22121.29 -
Managem y ment 22121.29
ent Co.Ltd.Shenfang
Property Subs Property
Managem idiar manage 1600400.00 10669084.42 7324783.70 9447024.91 442586.65
373738.6
ent Co. y ment 7
Ltd.Shengtou Subs Sales of（HK） idiar polarize HKD10000 6315269.67 6288397.35 0.00 304319.52 304319.52
Co. Ltd. y r
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
The financial data of SAPO Photoelectric mentioned in the table above are the financial statements data of
its parent company and non-consolidated statements data.For details of the performance fluctuation and the
reasons for change of SAPO Photoelectric a subsidiary please refer to "I. Main business of the Company
during the reporting period" in "Section III Management Discussion and Analysis".
17Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
IX．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Macro economic risk
As the COVID-19 is still spreading all over the world there are still weak links in the prevention and
control of domestic pandemic the foundation of economic recovery is still not solid the consumption of
residents is still restricted and the domestic demand economy will continue to be under pressure. As a member
of the upstream manufacturers in the monitor market the Company can't rule out the risk that unpredictable
macroeconomic fluctuations may affect the Company's performance
Countermeasures: The company will pay close attention to the international economic situation study
national policies and industry trends strengthen the tracking and analysis of major industry information and grasp
the development and change trends of the industry in a timely manner. Meanwhile it will continuously optimize
the product structure improve the market development ability stimulate the vitality of enterprise development
strengthen internal management control operational risks and ensure the steady development of the company.
2. Market risk
The polarizer industry is an important part of China's future manufacturing development. The demand for
display panels and the development of corresponding technologies are changing with each passing day. The
domestic substitution process of the polarizer industry is underway. With the gradual mass production of the 10.5
generation line the super-large size market New changes will be ushered in. If the company’s technology and
products cannot respond to the needs of the application field in time the wide-format polarizer products and
applications fall short of expectations or the intensified market competition causes the price of display products to
fall and the pressure of price cuts is transmitted upwards to the polarizer market. Will have an adverse effect on
the company.Countermeasures: Facing the complex market environment on the one hand the company has
comprehensively built the Line 7 project as planned actively promoted the introduction of new product clients
improved product bargaining power and stabilized customer confidence; On the other hand it keeps close
communication with demand customers and end customers pays close attention to product demand trends taps
market potential increases market share continuously improves production line yield and utilization enhances
core competitiveness and deals with market risks.
3. Risk of raw material
The core patents of polarizer terminal materials have high technical barriers and are basically monopolized
by foreign manufacturers. Thus patents are the main reason for limiting the localization of luminescent materials.Currently the key raw materials for manufacturing polarizers PVA film and TAC film are basically monopolized
by Japanese companies and the production line and production technology of upstream supporting raw materials
are constrained by the Japanese side. Compared with the international manufacturer's complete industrial chain
model from upstream raw materials to polarizers to display panels the Company does not have the corresponding
complete industrial support to play the role in industrial integration while the price of major membrane materials
is affected by the supplier's production capacity market demand and the yen exchange rate which influences the
18Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
unit cost of the Company's products.Countermeasures: The company will continue to optimize the supply chain system improve the bargaining
power with suppliers increase the R&D of independent intellectual property rights promote the import of low-
cost raw materials actively explore the import substitution of raw materials improve the utilization and maintain
a low level of production loss rate maintain production stability and continuity and reduce product production
costs; If necessary the company can choose exchange rate wealth management products such as forward foreign
exchange and foreign exchange options to avoid excessive exchange losses caused by sharp exchange rate
fluctuations.
19Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
IV. Corporate Governance
I. Annual General Meeting and Provisional Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Meeting Type participation Convened date Disclosure
ratio date
Index to disclosed information
The First
provisional Provisional
General General January 19 Announcement No.:2022-0149.43% January 182022
Meeting of Meeting 2022 www.cninfo.com.cn
2022
Annual
General AnnualGeneral Announcement No.:2022-16Meeting of 49.50% May 192022 May 202022Meeting www.cninfo.com.cn2021
2. Preferred shareholders with the restoration of voting rights made a request for the Special Meeting of
Shareholders
□ Applicable √ Not applicable
II. Change in shares held by directors supervisors and senior executives
□ Applicable √ Not applicable
he company's directors supervisors and senior managers did not change during the reporting period please refer to the 2021
annual report
Note: Zhang Jian the former Chairman of the Company resigned on August 2 2022. For details please refer to
the Company's Announcement on the Resignation of the Chairman of the Company (No.2022-23) on CNINF
(http://www.cninfo.com.cn). On August 5 2022 the Company held the Fourteenth Meeting of the Eighth Board
of Directors elected Yin Kefei as the Chairman of the Eighth Board of Directors nominated Wang Chuan as a
candidate for the non-independent director of the Eighth Board of Directors and submitted the appointment of
Wang Chuan as the deputy general manager of the Company to the General Meeting of Shareholders for
election. As of the disclosure date of this report except for the above changes other directors supervisors and
senior management personnel of the Company have not changed.III. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
□ Applicable √ Not applicable
The Company planned not to distribute cash dividend and bonus share and not to convert capital reserves into
share capital in half year.IV. Implementation of any equity incentive plan employee stock ownership plan or other incentive
measures for employees
√ Applicable □Not applicable
20Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
1. Equity incentive
Not applicable
2. Implementation of ESOP
√ Applicable □ Not applicable
All effective ESOPs during the reporting period
Quanti Total Chang Proportion of total
Scope of employees ty of number of eemplo inform share capital of
Funding sources for plan
yees shares held ation listed companies
implementation
Directors supervisors senior The Company employees' legal
managers and other core
technical/business/management remuneration self-raised funds126 1403600 No 0.28%
backbones of the Company (including and other legal ways permitted
subsidiaries the same below). by laws and regulations.Shareholding of directors supervisors and senior managers in the ESOP during the reporting period
Number of shares Number of shares held at
Name Position held at thebeginning of the the end of the reporting
Proportion of total share capital of
listed companies
reporting period period
Zhang Jian Former chairman 114206 114206 0.02%
Zhu Meizhu Director General 114206 114206 0.02%
Manager
Ning Director Secretary of
28551285510.01%
Maozai Party Committee
Le Kunjiu Senior consultant 57103 57103 0.01%
Liu Honglei Deputy GM 57103 57103 0.01%
He Fei Director CFO 57103 57103 0.01%
Jiang Peng Secretary of the Board 57103 57103 0.01%
Zhan Lumei Employee supervisor 17131 17131 0.00%
Changes in asset management institutions during the reporting period
□ Applicable √Not applicable
Changes in equity caused by holders' disposal of shares during the reporting period
√ Applicable □ Not applicable
During the reporting period Yang Juhua and Jiao Nan the original holders of the Company's first ESOP resigned
for personal reasons. Upon confirmation by the management committee of the Company's first ESOP they
transferred their 50000 shares in ESOP to Liu Xiaohui and Liu Yiguang. After the transfer Liu Xiaohui's share in
the first ESOP of the Company was changed from 0 to 20000 shares. Liu Yiguang's share in the first ESOP of the
Company was changed from 50000 to 700000 shares.
3. Other employee incentives
□ Applicable √Not applicable
21Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
√ Yes □ No
Main Emissi Emission
Exces
Company or pollutant port Emission
Implemen
ted Total Verified sive
subsidiary and specific Emissio on portn way numbe distributio
concentrat pollutant emission total emissi
name pollutant n ion emission emission( on3)
name r condition (mg/Nm standards Tons) condition
Shenzhen Open
Beauty channel Northwes
Century Effluents： discharg 1 t side of ＜60mg/L 60mg/L ＜2.43t/a 2.43t/a No
Garment Co. COD e after plant area
Ltd. treatment
The
Exhaust discharge
Shenzhen
gas Non- High outlet is
SAPO ： <30mg/m 120mg/m
methane emissio 2 set on the 23.4t/a 49.98t/a No
Photoelectric 3 3
total n east of the
Co. Ltd.hydrocarbon roof of
No.1
The
Exhaust discharge
Shenzhen
gas Non- High outlet is
SAPO ： <20mg/m
methane emissio 2 set on the 50mg/m3 23.4t/a 49.98t/a No
Photoelectric 3
total n east of the
Co. Ltd.hydrocarbon roof of
No.3
Prevention and control of pollution facilities construction and operation
1. Beauty Century Company
The Beauty Century Company wastewater treatment facilities adopt the treatment processes of regulation
hydrolysis acidification coagulation and air flotation contact oxidation coagulation and sedimentation and
filtration. It is with stable treatment process and good effluent effect of wastewater treatment. The wastewater
from the production process can meet the environmental protection requirements after being treated by wastewater
treatment facilities.The Company invested RMB 960000 to build the reuse system of reclaimed water and now the reuse
project of reclaimed water has been accepted and started operation. The use of reclaimed water can effectively
reduce wastewater discharge and 4300 tons of tap water have been saved in the reporting period.
2. SAPO Photoelectric
RTO waste gas regenerative incineration process is adopted for the organic waste gas produced in all
production lines of SAPO Photoelectric and RTO+ advanced treatment process is adopted for Line 7. RTO
waste gas treatment equipment runs stably with good waste gas treatment effect. The removal rate of VOCs in
organic waste gas reaches over 99% which can fully meet the requirements of waste gas discharge. Meanwhile
imported heat storage materials are adopted for the equipment with a heat storage effect of 90% and low
running energy consumption of the equipment; After RTO treatment the waste gas from the production process
after treatment can meet the discharge standard. The first-phase wastewater treatment facilities of SAPO
Photoelectric are Fenton + coagulating sedimentation + UASB anaerobic + aerobic + MBR membrane
wastewater treatment process and the second-phase wastewater treatment facilities are Fenton + coagulating
22Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
sedimentation + UASB anaerobic + aerobic + MBR membrane + MC special membrane + evaporation zero-
discharge wastewater treatment process (reuse water system). On the selection of wastewater treatment process
SAPO has selected the process with strong impact load resistance stable system operation low energy
consumption low maintenance cost high degree of automation and good effluent effect. The wastewater from
the production process can meet the environmental protection requirements of standard discharge after being
treated by wastewater treatment facilities.
1. Beauty Century Company
The Company complied with relevant environmental protection regulations at such three stages as project design
construction and operation and obtained environmental protection approvals needed at each corresponding stage
including EIA report EIA approval environmental protection acceptance decision and emission permit among
others.
2. SAPO Photoelectric
The Company complied with relevant environmental protection regulations at such three stages as project
design construction and operation and obtained environmental protection approvals needed at each
corresponding stage including environmental impact assessment report EIA approval environmental
protection acceptance decision sewage discharge permit etc. shall be available. and the application for
environmental emergency plan shall be approved by the relevant departments for filing.Emergency Plan for Emergency Environmental Incidents
1. Beauty Century Company
According to the actual situation of the company on September 162020the preparation of the emergency plan
for emergency environmental incidents was completed and an emergency environmental emergency plan filing
application
2. SAPO Photoelectric
According to the actual situation of the company the preparation of the emergency plan for emergency
environmental incidents was completed and an emergency environmental emergency plan filing application
1. Beauty Century Company
According to the environmental management requirements of the pollutant discharge permit the specific
monitoring scheme is as follows: once every 6h for pH value of wastewater once per day for chroma once per
day for suspended solids once per week for biochemical oxygen demand in five days once every 6h for chemical
oxygen demand once per day for total nitrogen once per day total phosphorus once per month for sulfide once
per month for aniline once per year chlorine dioxide and twice per year for waste gas at factory boundary (once
every six months).
2. SAPO Photoelectric
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: 8 times/year (twice every
quarter) for organic waste gas 4 times/year (once every quarter) for wastewater discharge 2 times/year (once
every six months) for boiler waste gas 1 time/year for canteen oil fume 2 times/year (once every six months)
for noise at factory boundary and 1 time/year for drinking water.Administrative penalties for environmental problems during the reporting period
Name of company Reasons for Violation Penalty Impact on the production Company's
or subsidiary punishment situation result and operation of listed rectification
23Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
companies measures
No No No No No No
Other Environmental Information That Should Be Disclosed
None
Measures and effects taken to reduce its carbon emissions during the reporting period
□ Applicable √Not applicable
Other Environmental Related Information
Not applicable
II. Social responsibilities
(I) Protection of shareholders' rights and interests
During the reporting period the Company abided by laws and regulations operated in compliance with
regulations and constantly improved its governance structure and further standardized the Company's operation in
strict accordance with the requirements of the Company Law the Securities Law and the Governance Guidelines
for Listed Companies and other laws and regulations. It adhered to the procedure system of general meeting of
shareholders Board of Directors Board of Supervisors and independent directors as the core further improved
the corporate governance structure and various management systems constantly improved the internal control
system in the process of the Company's operation and management took effective operational risk prevention
measures earnestly safeguarded and protected shareholders' rights and interests and laid a solid foundation for
the healthy and sustainable development of the Company. Independent directors paid close attention to the
Company's operation put forward many valuable professional suggestions for the Company's daily operation and
key concerns 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 strictly fulfilled its obligation
of information disclosure according to law truly accurately completely timely and fairly disclosed information
that has a significant impact on investment decision-making. The disclosure content was concise and easy to
understand fully revealed risks and facilitated all shareholders to consult. According to regulatory requirements
it further combed and improved relevant systems and enhanced the quality of information disclosure.During the reporting period the Company further improved the information disclosure and information
transparency fulfilled the obligation of information disclosure in strict accordance with regulatory requirements
communicated with investors through various channels answered questions raised by investors in a timely manner
and improved information transparency. Meanwhile it cooperated with regulatory authorities to safeguard the
rights and interests of investors especially small and medium-sized investors and realized the benign interaction
and harmonious development between investors and listed companies.(II) Protection of employees' rights and interests
According to the enterprise development strategy the Company further revised and improved the human
resource management system. It established labor relations by entering into labor contracts with employees and
implement necessary management for employees according to the Labor Law and relevant management
regulations of the Company. The Company established a scientific assessment and distribution system
according to the classification of senior managers department managers and employees established a
systematic and standardized performance assessment and evaluation system and conducted a comprehensive
objective fair and accurate assessment of employees' performance of duties and tasks which is used as the
basis for determining employees' remunerations rewards and punishments and appointments.In 2022 the Company has made efforts to create a good corporate culture atmosphere regularly organized
face-to-face communication between company leaders and group employees and core backbones of subordinate
24Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
enterprises strengthened care for employees' psychology enhanced employees' sense of acquisition and
belonging and better cared for and helped employees' growth; Meanwhile it actively guided and assisted
subordinate enterprises to promote the standardization of human resource management strengthened the
scientification and standardization of human resource management avoided labor risks improved the level of
human resource management and further mobilized employees' work enthusiasm.(III) Environmental protection
Striving to build a modern "green enterprise" is the Company's long-term positive responsibility. We insist on
building the whole process of green cycle in the industrial chain realizing the real green cycle economy
improving the quality of the Company's surrounding environment and escorting the Company's production.During the reporting period the OSBL noise industrial wastewater and waste gas emissions in the Company's
production process all passed the monitoring of the environmental protection department and complied with the
standard requirements of relevant laws and regulations. and no major environmental incidents occurred. In
addition the Company vigorously advocated green office carried out various forms of environmental protection
publicity and education activities raised employees' awareness of energy conservation and emission reduction
realized the coordinated development of production & operation and environmental protection and earnestly
fulfilled social responsibilities.(IV) Protection of consumers' rights and interests
The Company has been adhering to the core values of "honesty oriented and responsibility first". Being
responsible for customers is the source of our enterprise value. It is our unremitting pursuit to provide customers
with professional personalized and all-round products and services. With customer demand as the core
continuously innovating to serve customers and continuously improving and enhancing product quality are the
driving force for the Company to achieve good performance and sustainable development and also an important
guarantee to win customers' long-term trust. It has provided active attention to customer needs quick response to
customer feedback sincere consideration for customers and promotion of long-term cooperative partnership.
25Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
VI. Important Events
I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of
the reporting period made by the company shareholder actual controller acquirer director supervisor
senior management personnel and other related parities.√ Applicable □ Not applicable
Time of
Commitm Commit Period ofment Type Contents making commitme Fulfillmenent maker commitme nt tnt
As Shenzhen Investment Holdings Co. Ltd. the
controlling shareholder of the company
committed when the restricted-for-sale shares
from the shares restructuring were listed for
Shenzhe circulation in the market: i. if they plan to sell theshares through the securities exchange system in
Commitm nInvestm Share the future and the decrease of the shares theyent on Sustained Under
share ent
reduction hold reaches 5% within 6 months after the first August 4
Holding commitme decrease they will disclose an announcement 2006
and Fulfillmen
reform s Co. nt indicating the sale through the company within
effective tLtd. two trading days before the first decrease; ii.They shall strictly observe the “Guidelines onTransfer of Restricted-for-sale Original Shares ofListed Companies” and the provisions of the
relevant business principles of Shenzhen Stock
Exchange.Shenzhen Investment Holdings Co. Ltd. signed a“Letter of Commitment and Statement onHorizontal Competition Avoidance” when the
company issued non-public stocks in 2009.Pursuant to the Letter of Commitment and
Statement Shenzhen Investment Holdings Co.Ltd. and its wholly owned subsidiary subsidiaries
under control or any other companies that have
actual control of it shall not be involved in the
Commitm business the same as or similar to those Shenzhen
ents on Textile currently or will run in the future or anyShenzhe
n horizontal
businesses or activities that may constitute direct
Commitm competitio or indirect competition with Shenzhen Textile; if
ents made Investm n related the operations of Shenzhen Investment Holdings Sustained Under
upon ent transactio Co. Ltd. and its wholly owned subsidiaries
October 9 and Fulfillmen
issuance Holding n and subsidiaries under control or other companies that
2009 effective t
s Co.Ltd. capital
have actual control of it compete with Shenzhen
occupatio Textile in the same industry or contradict the
n interest of the issuer in the future ShenzhenInvestment Holdings Co. Ltd. shall urge such
companies to sell the equity assets or business to
Shenzhen Textile or a third party; when the
horizontal competition may occur due to the
business expansion concurrently necessary for
Shenzhen Investment Holdings Co. Ltd. and its
wholly owned subsidiaries subsidiaries under
control or other companies that have actual
control of it and Shenzhen Textile Shenzhen
Textile shall have priority.Commitm Shenzhe Commitm The commitments during the period non-public
ents made n ents on issuance in 2012: 1. Shenzhen Investment Sustained UnderInvestm horizontal Holdings as the controlling shareholder of July 14 and Fulfillmen
upon ent competitio Shenzhen Textile currently hasn't the production 2012 effective t
issuance Holding n related and business activities of inter-industry
26Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
s Co. transactio competition with Shenzhen Textile or its share-
Ltd. n and holding subsidiary. 2. Shenzhen Investment
capital Holdings and its share-holding subsidiaries or
occupatio other enterprises owned the actual control rights
n can't be directly and indirectly on behalf of any
person company or unit to engage in the same or
similar business in any districts in the future by
the form of share-holding equity participation
joint venture cooperation partnership contract
lease etc. and ensure not to use the controlling
shareholder's status to damage the legitimate
rights and interests of Shenzhen Textile and other
shareholders or to gain the additional benefits. 3.If there will be the situation of inter-industry
competition with Shenzhen Textile for Shenzhen
Investment Holdings and its share-holding
subsidiaries or other enterprises owned the actual
control rights in the future Shenzhen Investment
Holdings will promote the related enterprises to
avoid the inter-industry competition through the
transfer of equity assets business and other
ways. 4. Above commitments will be
continuously effective and irrevocable during
Shenzhen Investment Holdings as the controlling
shareholder of Shenzhen Textile or indirectly
controlling Shenzhen Textile.Executed
timely or Yes
not?
If the
commitme
nts failed
to
complete
the
execution
when
expired
should
specificall Not applicable
y explain
the
reasons of
unfulfillm
ent and
the net
stage of
the
working
plan
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
27Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of
directors and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of directors
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Litigations and arbitrations
√ Applicable □Not applicable
Amoun Implemen
Basic t Whether Litigation(ar tation of
situation of involve to form Litigation(arbitration) bitration)tria litigation( Disclosu
litigation(arb d (ten estimated progress l results and arbitration re date Disclosure index
itration) thousan liabilities impact )judgment
d yuan) s
The
case
was
heard
in
Pingsh
an
The case was heard in
Jinhang Fund DistrictPingshan District （http://www.cninfo.cv. SAPO People'People's Court on July Unfinished Undecide June om.cn ）
Photoelectric s Court No
15 2022 and no trial d 242022 Announcement
for on July
judgment has yet been No.:2022-20
Dissolution 15
made
Dispute 2022
and no
judgme
nt has
yet
been
made
Other litigation matters
√ Applicable □Not applicable
28Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Basic Amount Whether Litigation(arbitr Implementation
situation of involved(ten to form Litigation(arbitration)prog ation)trial of
Disclo Disclo
litigation(arb thousand estimated ress results and litigation(arbitra
sure sure
itration) yuan) liabilities impact tion)judgments
date index
The case was heard at the
Shenzhen International
Arbitration Arbitration Court on
of contract February 9 2022 and the The arbitration
dispute second hearing was tribunal has
between conducted in the form of extended the
Shengbo online video on May 12 trial period of
1217.87 No Unfinished trial
optoelectroni 2022. In combination with this case from
cs and the actual situation of this June 13 2022 to
Nexteye case the arbitration September 15
company of tribunal has extended the 2022
South Korea trial time limit of this case
from June 13 to
September 15 2022.The case was heard in the
second instance on April
27 2022. The Shenzhen
Intermediate People's
Court made the judgment
on June 28 2022: 1.The Revoke the administrative
Company v. judgment Y0308 XC Yantian District
Shenzhen No.1883 of the People's People's Court
Administrati Court of Yantian District of Shenzhen
on for Shenzhen City City
Market Guangdong Province Guangdong
Regulation 0 No (2021); II. Remand to Unfinished trial Province is /
for Yantian District People's scheduled to
Revocation Court Shenzhen City hold a hearing
of Guangdong Province for on August 25
Cancellation retrial. On July 22 2022 2022 for retrial
of Shenzhen the Company received the of this case
Xieli summons from Yantian
District People's Court
Shenzhen City
Guangdong Province and
the trial of this case is
scheduled onAugust 25
2022.
The case was heard in the
first instance on February
Zheng 24 2022. Shenzhen
Wenhui v. Luohu District People's
Jintian Court made a judgment
Industrial on April 20 2022: 1.The plaintiff has
(Group) Co. Confirm that the House
0 No Finished trial applied for /
Ltd. and the Sales Agreement signed
enforcement
Company for by the plaintiff Zheng
House Sales Wenhui and the defendant
Contract Jintian Industrial (Group)
Dispute Co. Ltd. on May 28
2021 is legal and valid; II.
Defendants Jintian
29Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Industrial (Group) Co.Ltd. and Shenzhen Textile
(Group) Co. Ltd. shall
assist the plaintiff Zheng
Wenhui in handling the
transfer formalities for
Room 1-802 of Textile
Industry Company
Fenghuang Road Luohu
District Shenzhen (Real
Estate Certificate No.:
SFD Zi No. 0042588).The judgment has come
into effect.Manager of
Shenzhen
Shenbao
Textile
Industry and
Trade Co. The case was heard in the
Ltd. v. The first instance on May 27
Company 2022 and June 30 2022.Shenzhen 256.75 No Shenzhen Luohu District Unfinished trial /
Yuanxingcha People's Court has not yet
ng Industrial made a first-instance
Co. Ltd. and judgment.Su Xingbin
for
Liquidation
Liability
Dispute
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI.Material related transactions
1. Related transactions in connection with daily operation
□ Applicable √ Not applicable
No such cases in the reporting period.
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
30Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Transactions with related finance company especially one that is controlled by the Company
□Applicable √ Not applicable
No such cases in the reporting period.
6. Transactions with related finance company controlled by the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
7. Other significant related-party transactions
□ Applicable √ Not applicable
No such cases in the reporting period.XII. Significant contracts and execution
I.Entrustments contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
31Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
II.Significant Guarantees
√ Applicable □ Not applicable
（1）Guarantees
In RMB10000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
disclosur Date of Guarantee
Name of e Amoun happeni Guarant Counter-
Complet for
the date/No. ng Actual guarante e
Compan oft of Guarante y（If Guarante associateGuarant (Date of mount of e type e（If implemey the ee signing guarantee any）
e term
any ntation
dguarante agreeme ） or not parties
ed nt) (Yes or
amount no)
Guarantee of the company for its subsidiaries
Relevant
disclosur Date of Guarantee
Name of e Amoun happeni Counter- Complet
the date/No. t of ng Actual
Guarant forof Guarante y（Ifguarante Guarante e associate
Compan the Guarant(Date of mount of e type e（If e term implemey ee signing guarantee any） ntation
dguarante agreeme any） or not parties
ed nt) (Yes or
amount no)
Two
Guarante years
SAPO Septemb eing of from the
Photoele March 48000 er 43647.06 joint date ofctric 182020 expiratio No No
82020 liabilitie n of the
s principal
debt
Total of guarantee Total of actual
for subsidiaries guarantee for
approved in the 0 subsidiaries in the 2734.32
period(B1) period (B2)
Total of guarantee Total of actual
for subsidiaries 48000 guarantee forapproved at period- subsidiaries at period- 43647.06
end(B3) end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
disclosur Date of Guarante
Name of e Amoun happeni Counter- Complet
e
the date/No. t of ng Actual
Guarant e forguarante
Compan of Guarant (Date of mount ofGuarante y（If Guarante associatethe signing guarantee e type
e（Ifany） e term
implemey ee any） ntation
d
guarante agreeme or not parties
ed nt) (Yes or
amount no)
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee Total amount of
quota approved in guarantee actually
the reporting period 0 incurred in the 2734.32
A1+B1+C1 reporting period（ ） （A2+B2+C2）
Total guarantee Total balance of the
quota already 48000 actual guarantee at the 43647.06
32Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
approved at the end of the reporting
end of the period
reporting period （A4+B4+C4）
（A3+B3+C3）
The proportion of the total amount of
actually guarantee in the net assets of the 15.40%Company (that is A4+B4+C4）%
Including：
Description of the guarantee with complex method
None
III.Situation of Entrusted Finance
√ Applicable □Not applicable
In RMB10，000
Source of funds The Occurred
Specific type for entrusted Amount offinancial Entrusted Wealth- Undue balance Amount overdue
Un-recovered of
overdue amount
management management
Bank financial
products Self fund 43000.00 43000.00 0 0
Other Self fund 71964.93 17882.81 0 0
Total 114964.93 60882.81 0 0
The detailed information of entrusted wealth-management with significant amount or low safety poor liquidity
or high risk with no promise of principal
√ Applicable □Not applicable
In RMB10000
Name Typ Pr Amo Ca Start Ex Fu M Re Ex A Th Amou Wheth Wheth Summary of
of e of od unt pit Date pir nd et fer pe ct e nt of er er events and
Truste Tru uc al y s ho en cte ua ac provis passed there related search
e stee t So Da Al d ce d l tu ion for the is any index (if any)
Organ Org Ty ur te lo of A In pr al impair statuto entrust
ization aniz pe ce ca Re nn co ofi re ment ry ed
(or atio tio w ua m t co (if proced financ
Truste n(or n ar liz e an ve any) ure ial
e Tru d ed (if d ry plan
Name) stee D Ra an lo of in the
) et te y) ss pr future
er of du ofi
mi Re rin t
na tur g an
tio n th d
n e lo
re ss
po du
rti rin
ng g
pe th
rio e
d re
po
rti
ng
pe
33Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
rio
d
Re
de
m
m
p
on
tio
St De ey
n
ru ce m
on
ct Se m ar N
T （http://www.cBank ur lf June be ke 3. ot NotBan 300 da 55 ninfo.com.cn）
of al fu 302 r t 70 0 ex 0 Yes applic
k 00 y 5 Announcement
China de nd 022 28 in % pir able
arr No.:2021-64
po s 2 str ed
iv
sit 02 u
al
s 2 m
on
en
T
t
+1
da
y
30055
Total -- -- -- -- -- -- 0 -- 0 -- -- --
005
Entrusted financing appears to be unable to recover the principal or there may be other circumstances that
may result in impairment
□ Applicable √ Not applicable
IV. Other significant contract
√ Applicable □Not applicable
Com Compa Contra Co Book Assess App Base Pricing Tran Wh Co Execu D Disclosure
pany ny ct ntr Value ed raisa Date Principl sacti ethe nn tion at Index
Nam Name Object act of the Value l of e on r A ect Condit e
e of of the Si Assets of the Age Asse Pric Rela io ion As of
the Other gn Involv Assets ncy ssm e ted n Of Di
Party Party in ed by Involv Nam ent (RM Trac Re The scl
Maki of the g the ed by e (If (if B10 tion lati End os
ng Contra Da Contr the Any any) 000) on Of ur
the ct te act Contra ) The e
contr (RMB ct Report
act 1000 (RMB ing
0) (If 1000 Period
Any) 0)
SAP Hangzh Nitto No Conside Wi In N
O ou Denko ve ring the th norma ov
Photo
electr Jinjian provid m
formulat no l e
g es be ion of ass perfor m Http://wwic market w.cninfo.c
Group polari r price oci mance be om.cn:
Co. zer 6 and ati r (Announc
Ltd. manuf 20 No technica 86900 No on 7 ement
Kunsha acturi 17 l service rel 20 No. :2017
n ng period ati 17 -53)on
Zhiqim techno the final on Novembertransacti 7 2017
ei logy on price shi
Materia and is based p
l related on the wi
34Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Techno corpor commer th
logy ation. cial the
Co. negotiation co
Ltd. results m
Japan of both pa
Nitto parties. ny
Denko
Corpor
ation
XIII. Explanation on other significant events
√ Applicable □Not applicable
(I) Progress of polarizer industrialization project for ultra-large TV (Line 7)
During the reporting period the technical indicators such as yield and loss rate of Line 7 improved month
by month the production capacity increased and the Company's operating performance improved month by
month. The main products of Line 7 have been verified by customers the order volume has gradually increased
and the unit manufacturing cost of products has gradually decreased. With the smooth progress of Line 7 ramp-
up it will have a positive follow-up impact on the Company's operating performance.(II) Regarding the investment in the construction of the RTS rear cutting production line
In 2021 upon careful demonstration the Company increased investment in the construction of a cutting
production line at the back-end of RTS with a total investment of no more than RMB 30 million; As of June 30
2022 the signed contract amount was RMB 25402400 and the actual payment was RMB 19789800; As of
June 30 2022 the Company has overcome the adverse effects caused by the pandemic. At present the main
equipment of the project has been manufactured and mobilized and the follow-up installation and
commissioning are being carried out in an orderly manner according to the construction and production
schedule of the customer's production line.(III) The disposal of assets of the joint venture company Xieli Automobilemobile Co. Ltd.Shenzhen Xieli Automobilemobile Enterprise Co. Ltd. (hereinafter referred to as "Shenzhen Xieli") is a Sino-
foreign joint venture invested and established by the company and Hong Kong Xieli Maintenance Company in
1981 with a registered capital of 3.12 million yuan and the company holds 50% of the equity. The company's
operating period ended in 2008 and its business license was revoked in 2014. The company's main asset is real
estate. The industrial and commercial license of Shenzhen Xieli was cancelled in March 2020 but there are still
three properties under its name the disposal of which is required to be resolved after further consultation between
the shareholders of both parties.On July 26 2021 the Company filed a lawsuit with Yantian District People's Court in Shenzhen City
Guangdong Province to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co. Ltd.approved by Shenzhen Administration for Market Regulation on March 9 2020 on which the court gave a
judgment on November 21 2021 to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise
Co. Ltd. approved by Shenzhen Administration for Market Regulation. On December 3 and December 62021
Hong Kong Xili and Shenzhen Market Supervision Administration submitted appeals to the Shenzhen
Intermediate People's Court respectively. On April 18 2022 the Company received the notice of the second
trial from Shenzhen Intermediate People's Court. The case was heard in the second instance on April 27 2022.The Shenzhen Intermediate People's Court made the judgment on June 28 2022: 1. Revoke the administrative
judgment Y0308 XC No.1883 of the People's Court of Yantian District Shenzhen City Guangdong Province
(2021); II. Remand to Yantian District People's Court Shenzhen City Guangdong Province for retrial. On July
35Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
22 2022 the Company received the summons from Yantian District People's Court Shenzhen City
Guangdong Province and the trial of this case is scheduled on August 25 2022.(IV)Reduction of the rent of the Company's own property in response to COVID-19 pandemic
In order to jointly respond to the pandemic and actively fulfill social responsibilities according to Several
Measures of Shenzhen on Further Helping Market Subjects to Solve Problems in Response to COVID-19 (SF
[2022] No.28) issued by Shenzhen Municipal Government and in accordance with the relevant work
requirements of Shenzhen SASAC the Company has formulated the implementation plan of rent reduction and
exemption for the self-own property of the Company and its wholly-owned enterprises to tide over the
difficulties with market subjects and help win the war of epidemic prevention and control.The impact of the property rent reduction of the Company and its wholly-owned enterprises on the
Company's operating income in 2022 is expected to be no more than RMB 30.35 million accounting for about
1.3% of the audited operating income in 2021; The impact on the Company's net profit attributable to its parent
company in 2022 is estimated to be about RMB 30.24 million accounting for about 49.4% of the audited net
profit attributable to its parent company in 2021. The impact of this rent reduction on the Company's operating
income and net profit attributable to its parent company in 2022 is the unaudited estimated data which is only
used by investors to understand the impact of this rent reduction on the Company and it's subject to the actual
executed amount. For details please refer to the Company's announcement No. 2022-19 on CNINF
(http://www.cninfo.com.cn).XIV. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
(I) The progress of the lawsuit of the Company and its holding subsidiaries v. Jinhang Fund v. SAPO
Photoelectric for dissolution dispute
In July 2022 the Company and its holding subsidiary SAPO Photoelectric respectively received the legal
documents such as Notice of Participation in Litigation Notice of Respondence to Action Summon and Civil
Complaint with a case number of (2022) Y0310 MC No. 3507 served by Pingshan District People's Court
Shenzhen City Guangdong Province and were informed that the court had accepted Hangzhou Jinhang Equity
Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Jinhang Fund") v. SAPO
Photoelectric for dissolution dispute and the Company was informed to participate in the lawsuit as a party to
the case and SAPO Photoelectric was informed to respond as the defendant to the case. For details please refer
to the Company's Announcement No. 2022-20 on CNINF (http://www.cninfo.com.cn).The case was heard in Pingshan District People's Court Shenzhen City Guangdong Province at 9: 30 on
July 15 2022 and no judgment has yet been made.(II) Progress in subsidiaries participating in the establishment of industrial funds
On November 16 2017 the company's controlling subsidiary SAPO Photoelectric signed the Changxing Junying
Equity Investment Partnership (Limited Partnership) Agreement with the fund manager Huizhi Investment
Management Co. Ltd general partner Jinxin Investment Co. Ltd and other limited partners and co-sponsored the
establishment of an industrial fund focusing on the optical film industry chain related projects related to the
company's main business with a fund size of 50 million yuan. SAPO Photoelectric as one of the limited partners
of the industrial fund subscribed for a capital contribution of 28.5 million yuan. For details Juchao Website:
（http://www.cninfo.com.cn. (Announcement No.2017--55).On February 10 2018 Changxing Junying Equity Investment Partnership completed the industrial and
commercial registration and completed the private equity investment fund registration on February 8 2018. For
36Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022details Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).In order to optimize the strategic layout and supplement the working capital SAPO Photoelectric and
Hangzhou Yuanzhen Investment Management Co. Ltd. (hereinafter referred to as Yuanzhen Investment)
signed the Transfer Agreement on Property Share of Changxing Junying Equity Investment Partnership
(Limited Partnership) on July 11 2022 and transferred the share of Changxing Fund held by SAPO
Photoelectric to Yuanzhen Investment at a transaction consideration of RMB 28.5 million. After this property
share transfer the Company will withdraw from Changxing Fund and no longer hold the partnership share of
Changxing Fund. For details please refer to the Company's Announcement No.2022-21 on Juchao Information
Network (http://www.cninfo.com.cn).
37Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the ChangeAmount Proporti B
on on CapitaliShare zation of Ot Su
allotm us common he bt Quantity Proporti
ent shar reserve r
ot on
fund ales
1.Shares with conditional
subscription 72000 0.01% 0 0 0 0 0 72000 0.01%
1.State -owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal person
shares 0 0.00% 0 0 0 0 0 0 0.00%
3.Other domestic shares 72000 0.01% 0 0 0 0 0 72000 0.01%
Incl：Domestic legal person
shares 0 0.00% 0 0 0 0 0 0 0.00%
Domestic Natural Person shares 72000 0.01% 0 0 0 0 0 72000 0.01%
4.Foreign share 0 0.00% 0 0 0 0 0 0 0.00%
Incl：Foreign legal person
share 0 0.00% 0 0 0 0 0 0 0.00%
Foreign Natural Person
shares 0 0.00% 0 0 0 0 0 0 0.00%
II.Shares with unconditional
subscription 506449849 99.99% 0 0 0 0 0 506449849 99.99%
1.Common shares in RMB 457021849 90.23% 0 0 0 0 0 457021849 90.23%
2.Foreign shares in domestic
market 49428000 9.76% 0 0 0 0 0 49428000 9.76%
3. Foreign shares in foreign
market 0 0.00% 0 0 0 0 0 0 0.00%
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital shares 100.00 100.00506521849 0 0 0 0 0 506521849
%%
Reasons for share changed
□ Applicable √ Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
38Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
2. Change of shares with limited sales condition
□ Applicable √Not applicable
II. Securities issue and listing
□ Applicable √Not applicable
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total number of preferred
Total number of common
shareholders at the end of the shareholders that had restored the voting26670
reporting period right at the end of the reporting period (if
0
any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proporti Amount Number of share
on of Number of Changes of Amount of pledged/frozenShareholders Nature of shares in
shareholder shares held at restricted un-restricted Stateheld period -end reportingperiod shares shares held of Amount（%） held share
Shenzhen
Investment State-owned
Holdings Co. legal person 46.21% 234069436 0 234069436
Ltd.Shenzhen
Shenchao State-owned
Technology Legal 3.18% 16129032 0 16129032
Investment Co. person
Ltd.Domestic
Sun Huiming Nature 1.19% 6008653 0 6008653
person
Domestic
Deng Yan Nature 1.17% 5928200 934400 5928200
person
Domestic
Pledg
Su Weipeng Nature 0.68% 3423010 599944 3423010 2800000
e
person
Domestic
Zhang Muxiu Nature 0.45% 2298800 490000 2298800
person
Domestic
Qi Jianhong Nature 0.44% 2218800 0 2218800
person
Domestic
Hou Xiulan Nature 0.38% 1946191 340800 1946191
person
Domestic
Wang Zhongjing Nature 0.37% 1872900 80300 1872900
person
Domestic
Li Zengmao Nature 0.35% 1760097 -322900 1760097
person
Strategy investors or general legal
person becomes top 10 None
shareholders due to rights issued
39Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(if applicable)（See Notes 3）
Among the top 10 common shareholders Shenzhen Investment Holdings Co. Ltd. and
Explanation on shareholders Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a concerted party
participating in the margin trading relationship. In addition the company does not know whether there is an associated
business relationship among the top 10 ordinary shareholders and between the top 10 ordinaryshareholders and the top 10 shareholders or whether they are persons taking concerted action
defined in Administrative Measures for the Acquisition of Listed Companies.Above shareholders entrusting or
entrusted with voting rights or None
waiving voting rights
Top 10 shareholders including the
special account for repurchase (if None
any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholder Quantity of unrestricted shares held at the
Share type
end of the reporting period Share type Quantity
Shenzhen Investment Holdings Co. Ltd. 234069436 Common shares inRMB 234069436
Shenzhen Shenchao Technology Investment 16129032 Common shares inCo. Ltd. RMB 16129032
Sun Huiming Foreign shares in6008653 6008653
domestic market
Deng Yan 5928200 Common shares inRMB 5928200
Su Weipeng 3423010 Common shares inRMB 3423010
Zhang Muxiu 2298800 Common shares inRMB 2298800
Qi Jianhong 2218800 Common shares inRMB 2218800
Hou Xiulan 1946191 Common shares inRMB 1946191
Wang Zhongjing 1872900 Common shares inRMB 1872900
Li Zengmao 1760097 Common shares inRMB 1760097
Explanation on associated relationship or Among the top 10 common shareholders Shenzhen Investment Holdings Co. Ltd.consistent action among the top 10 and Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a
shareholders of non-restricted negotiable concerted party relationship. In addition the company does not know whether there
shares and that between the top 10 is an associated relationship among the top 10 ordinary shareholders and between
shareholders of non-restricted negotiable the top 10 ordinary shareholders and the top 10 shareholders or whether they are
shares and top 10 shareholders persons taking concerted action defined in Administrative Measures for theAcquisition of Listed Companies.Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.IV. Changes in shareholdings of directors supervisors and executive officers
□ Applicable √Not applicable
There was no change in shareholding of directors supervisors and senior management staffs for the specific
information please refer to the 2021 Annual Report
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
40Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
41Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
42Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
IX. Corporate Bond
□Applicable √Not applicable
43Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co. Ltd.In RMB
Items June 302022 January 12022
Current asset：
Monetary fund 356600994.80 302472828.60
Settlement provision
Outgoing call loan
Transactional financial assets 609244744.72 586540735.16
Derivative financial assets
Note receivable 37121033.18 149942880.28
Account receivable 703849983.33 479998708.57
Financing of receivables 51434865.61 21474101.07
Prepayments 70367096.83 15406619.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 7235875.22 140185750.40
Including：Interest receivable 85062.56
Dividend receivable
Repurchasing of financial assets
Inventories 781404848.10 667461447.03
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 95692488.61 29503352.42
Total of current assets 2712951930.40 2392986423.06
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 134756614.83 133022325.77
Other equity instruments investment 186033829.72 186033829.72
44Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Other non-current financial assets 28500000.00 30650943.40
Real estate investment 102672477.07 106217779.76
Fixed assets 2375066361.03 2424741252.86
Construction in progress 23222687.28 71482031.08
Production physical assets
Oil & gas assets
Use right assets 16493135.66 9221189.37
Intangible assets 46573386.32 48635160.00
Development expenses
Goodwill
Long-germ expenses to be amortized 4713174.78 5387295.94
Deferred income tax asset 3664968.67 3708596.78
Other non-current asset 55960771.27 84560280.09
Total of non-current assets 2977657406.63 3103660684.77
Total of assets 5690609337.03 5496647107.83
Current liabilities
Short-term loans 22061861.12 37575113.83
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 46425031.27 16682324.12
Account payable 408582168.10 283643842.23
Advance receipts 17006276.84 1805311.57
Contract liabilities 122759.15 68955.21
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 54087482.76 59719860.24
Tax payable 2759752.29 9200627.09
Other account payable 139364842.98 201317421.35
Including：Interest payable 0.00
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 9045873.71 5175393.52
Other current liability 40146023.59 27523903.58
Total of current liability 739602071.81 642712752.74
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 728782222.63 683016243.25
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 8424816.86 4243855.71
Long-term payable
Long-term remuneration payable to staff
Expected liabilities 29710962.81 30741055.00
Deferred income 113665605.84 110461293.15
Deferred income tax liability 61740035.56 61642660.91
Other non-current liabilities
Total non-current liabilities 942323643.70 890105108.02
Total of liability 1681925715.51 1532817860.76
Owners’ equity
45Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Share capital 506521849.00 506521849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1961599824.63 1961599824.63
Less：Shares in stock
Other comprehensive income 119757875.07 119682119.05
Special reserve
Surplus reserves 98245845.47 98245845.47
Common risk provision
Retained profit 147853684.39 130746251.74
Total of owner’s equity belong to the
parent company 2833979078.56 2816795889.89
Minority shareholders’ equity 1174704542.96 1147033357.18
Total of owners’ equity 4008683621.52 3963829247.07
Total of liabilities and owners’ equity 5690609337.03 5496647107.83
Legal Representative:Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Zhu Jingjing
2.Parent Company Balance Sheet
In RMB
Items June 302022 January 12022
Current asset：
Monetary fund 97107787.70 130270313.58
Transactional financial assets 609244744.72 586540735.16
Derivative financial assets
Note receivable
Account receivable 10912315.67 7935911.24
Financing of receivables
Prepayments 726145.30
Other account receivable 12952469.33 14383631.68
Including：Interest receivable
Dividend receivable
Inventories 37293.80 39131.60
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 730980756.52 739169723.26
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2090804820.92 2089070531.86
Other equity instruments investment 169974388.84 169974388.84
Other non-current financial assets
Real estate investment 95061667.85 98174132.57
Fixed assets 19259962.92 20255108.56
Construction in progress
Production physical assets
Oil & gas assets
46Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Use right assets
Intangible assets 372046.54 454036.00
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 3632513.56 3672545.57
Other non-current asset 55760086.27 55790497.23
Total of non-current assets 2434865486.90 2437391240.63
Total of assets 3165846243.42 3176560963.89
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 411743.57 411743.57
Advance receipts 12040217.78 639024.58
Contract liabilities
Employees’ wage payable 14822675.01 16712946.96
Tax payable 2544728.33 1943470.48
Other account payable 115465471.73 116648650.39
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 145284836.42 136355835.98
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 350000.00 400000.00
Deferred income tax liability 58100175.34 58002800.69
Other non-current liabilities
Total non-current liabilities 58450175.34 58402800.69
Total of liability 203735011.76 194758636.67
Owners’ equity
Share capital 506521849.00 506521849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1577392975.96 1577392975.96
Less：Shares in stock
Other comprehensive income 108838294.41 108762538.39
Special reserve
Surplus reserves 98245845.47 98245845.47
Retained profit 671112266.82 690879118.40
Total of owners’ equity 2962111231.66 2981802327.22
Total of liabilities and owners’ equity 3165846243.42 3176560963.89
47Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3.Consolidated Income statement
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 1445137309.09 1101536407.38
Incl：Business income 1445137309.09 1101536407.38
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1353000511.71 963183000.35
Incl：Business cost 1242988094.06 863125460.07
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4171362.18 4281044.79
Sales expense 18355747.39 20493774.82
Administrative expense 61448188.86 55327660.76
R & D costs 34870992.66 29170093.39
Financial expenses -8833873.44 -9215033.48
Including：Interest expense 15882534.27 379800.97
Interest income 773863.34 -840978.40
Add: Other income 10780654.48 8764569.01
Investment gain（“-”for loss） 11043172.52 10152132.35
Incl: investment gains from affiliates 1658532.04 -412713.12
Financial assets measured at amortized cost cease to be
recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value 914599.37
Credit impairment loss -2985253.53 -4347598.84
Impairment loss of assets -42073672.20 -52628070.13
Assets disposal income -11114.72 -55.96
III. Operational profit（“-”for loss） 68890583.93 101208982.83
Add：Non-operational income 1768115.05 20437452.38
Less: Non-operating expense 213090.29 344978.92
IV. Total profit(“-”for loss) 70445608.69 121301456.29
Less：Income tax expenses 340897.81 7878916.04
V. Net profit 70104710.88 113422540.25
(I) Classification by business continuity
1.Net continuing operating profit 70104710.88 113422540.25
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 42433525.10 76603074.39
2.Minority shareholders’ equity 27671185.78 36819465.86
VI. Net after-tax of other comprehensive income 75756.02 -5049289.77
Net of profit of other comprehensive income attributable to owne 75756.02 -5049289.77
rs of the parent company.（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period -1003968.91
1.Re-
measurement of defined benefit plans of changes in net debt or ne
t assets
48Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
instruments -1003968.91
4. Changes in the fair value of the company’s credit risks
5.Other（II）
Other comprehensive income that will be reclassified into profit o 75756.02 -4045320.86
r loss.
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 75756.02 -4045320.86
7.Other
Net of profit of other comprehensive income attributable to Mino
rity shareholders’ equity
VII. Total comprehensive income 70180466.90 108373250.48
Total comprehensive income attributable to the owner of the
parent company 42509281.12 71553784.62
Total comprehensive income attributable minority shareholders 27671185.78 36819465.86
VIII. Earnings per share
（I）Basic earnings per share 0.0838 0.1509
(II)Diluted earnings per share 0.0838 0.1509
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Zhu Jingjing
4. Income statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I. Income from the key business 21156669.75 38146662.35
Incl：Business cost 5203409.57 5346478.59
Business tax and surcharge 1379026.92 1523347.63
Sales expense 61120.10
Administrative expense 20247344.52 19834907.43
R & D expense
Financial expenses -246370.02 162410.11
Including：Interest expenses 339399.60
Interest income -227023.28 -171381.45
Add：Other income 181448.97 50000.00
Investment gain（“-”for loss） 11334212.84 9140645.27
Including: investment gains from affiliates 1658532.04 -412713.12
Financial assets measured at amortized cost cease to be
recognized as income
Net exposure hedging income
Changing income of fair value 914599.37
Credit impairment loss -106152.94 -196707.89
Impairment loss of assets
49Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Assets disposal income
II. Operational profit（“-”for loss） 5921647.53 21188055.34
Add：Non-operational income
Less：Non -operational expenses 100000.00
III. Total profit(“-”for loss) 5821647.53 21188055.34
Less：Income tax expenses 262406.66 3381310.97
IV. Net profit 5559240.87 17806744.37
1.Net continuing operating profit 5559240.87 17806744.37
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 75756.02 -5049289.77
（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period -1003968.91
1.Re-
measurement of defined benefit plans of changes in net debt or ne
t assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
instruments -1003968.91
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into pro 75756.02 -4045320.86
fit or loss
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 75756.02 -4045320.86
7.Other
VI. Total comprehensive income 5634996.89 12757454.60
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1337065239.48 1120318752.18
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest commission charge and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
50Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Tax returned 2595000.19 7389955.19
Other cash received from business operation 287019693.63 42020491.27
Sub-total of cash inflow 1626679933.30 1169729198.64
Cash paid for purchasing of merchandise and services 1225526384.08 904947382.28
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest processing fee and commission
Cash paid to staffs or paid for staffs 132733244.30 131060141.64
Taxes paid 139777733.09 25418187.30
Other cash paid for business activities 49204337.24 160947023.67
Sub-total of cash outflow from business activities 1547241698.71 1222372734.89
Net cash generated from /used in operating activities 79438234.59 -52643536.25
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 2636054.80 7958287.14
Net cash retrieved from disposal of fixed assets intangible assets
and other long-term assets 2776.70
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 635000000.00 779428611.40
Sub-total of cash inflow due to investment activities 637638831.50 787386898.54
Cash paid for construction of fixed assets intangible assets and
other long-term assets 31252419.31 195798969.38
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 650000001.00 732374977.65
Sub-total of cash outflow due to investment activities 681252420.31 928173947.03
Net cash flow generated by investment -43613588.81 -140787048.49
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 50572000.00 201089000.00
Other financing –related cash received
Sub-total of cash inflow from financing activities 50572000.00 201089000.00
Cash to repay debts
Cash paid as dividend profit or interests 40857882.81 24141288.78
Including: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 7820298.30
Sub-total of cash outflow due to financing activities 40857882.81 31961587.08
Net cash flow generated by financing 9714117.19 169127412.92
IV. Influence of exchange rate alternation on cash and cash
equivalents 713784.26 -1040300.91
V.Net increase of cash and cash equivalents 46252547.23 -25343472.73
Add: balance of cash and cash equivalents at the beginning of
term 302408433.72 278337236.95
VI ..Balance of cash and cash equivalents at the end of term 348660980.95 252993764.22
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2022 The first half year of 2021
I.Cash flows from operating activities
51Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Cash received from sales of goods or rending of services 30439993.40 36947544.62
Tax returned 200005.60
Other cash received from business operation 8775816.77 23757836.70
Sub-total of cash inflow 39415815.77 60705381.32
Cash paid for purchasing of merchandise and services 5066002.25 5951213.89
Cash paid to staffs or paid for staffs 16859518.32 15731460.61
Taxes paid 3475718.60 14531396.20
Other cash paid for business activities 9214911.23 3676889.38
Sub-total of cash outflow from business activities 34616150.40 39890960.08
Net cash generated from /used in operating activities 4799665.37 20814421.24
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 2636054.80 5448251.42
Net cash retrieved from disposal of fixed assets intangible assets
and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 635000000.00 347796939.77
Sub-total of cash inflow due to investment activities 637636054.80 353245191.19
Cash paid for construction of fixed assets intangible assets and
other long-term assets 238180.00 1325797.35
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 650000001.00 384000000.00
Sub-total of cash outflow due to investment activities 650238181.00 385325797.35
Net cash flow generated by investment -12602126.20 -32080606.16
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend profit or interests 25326092.45 15176281.23
Other cash paid for financing activities 7820298.30
Sub-total of cash outflow due to financing activities 25326092.45 22996579.53
Net cash flow generated by financing -25326092.45 -22996579.53
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents -33128553.28 -34262764.45
Add: balance of cash and cash equivalents at the beginning of
term 130236340.98 113560327.21
VI ..Balance of cash and cash equivalents at the end of term 97107787.70 79297562.76
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Oth MinCo or TotaLess er l of
Items Shar Pre Sus Capi : Co
Spe Surp mm Reta shar own
e ferr tal Shar mpr
ciali lus on ined Oth Subt ehol
tain ers’Capi ed Oth rese es in ehen
zed rese risk prof er otal ders’ equi
tal abl er rves stoc sive
rese rves prov it equi ty
sto
e k Inco
rve isio ty
ck me
n
de
52Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
bt
506196119982130281114396
I .Balance at
the end of 521 159 682 458 746 679 703 382
last year 849. 982 119. 45.4 251. 588 335 924
004.63057749.897.187.07
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II. Balance at 506 196 119 982 130 281 114 396
the 521 159 682 458 746 679 703 382
beginning of 849. 982 119. 45.4 251. 588 335 924
current year 00 4.63 05 7 74 9.89 7.18 7.07
171171276448
III .Changed 757
in the current 074 831 711 5430.00 0.00 56.0
year 32.6 88.6 85.7 74.42
5785
424425276701
（1）Total 757 335 092 711 804
comprehensi 56.0
ve income 25.1 81.1 85.7 66.92
0280（II）
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
---
253253253（III）Profit
allotment 260 260 260
92.492.492.4
555
1.Providing
of surplus
reserves
2.Providing
of common
53Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
risk
provisions
---
3．Allotmen 253 253 253
t to the
owners (or 260 260 260
shareholders) 92.4 92.4 92.4
555
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
506196119982147283117400
IV. Balance
at the end of 521 159 757 458 853 397 470 868
this term 849. 982 875. 45.4 684. 907 454 362
004.63077398.562.961.52
Amount in last year
In RMB
The first half year of 2021
Owner’s equity Attributable to the Parent Company Min Tota
or l of
Items Shar Other Equity Capi Less Oth Spe Surp Co Reta
e instrument
shar own
tal : er ciali lus mm ined Oth Subt ehol ers’
Capi Pref rese Shar Co zed rese on prof er otal
Oth ders’ equital erre Sust rves es in mpr rese rves risk it equi ty
54Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
d aina er stoc ehen rve prov ty
stoc ble k sive isio
k debt Inco n
me
507196116949869276113389
I .Balance at 752
the end of 772 751 605 546 123 623 308 931543
last year 279. 435 932. 52.1 90.5 417 107 5248.20
008.5342404.395.239.62
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II.Balance at 507 196 116 949 869 276 113 389752
the 772 751 605 546 123 623 308 931
beginning of 543279. 435 932. 52.1 90.5 417 107 524
current year 8.2000 8.53 42 4 0 4.39 5.23 9.62
----614567368935
III .Changed
in the current 125 591 752 504 074 186 194 380
year 043 453 543 928 18.9 03.4 65.8 69.3
0.003.908.209.772561
-766715368108
（1）Total 504 030 537 194 373
comprehensi
ve income 928 74.3 84.6 65.8 250.
9.7792648（II） - - -
Investment 360 360125 591 752
or decreasing 474. 474.of capital by 043 453 543 30 30
owners 0.00 3.90 8.20
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
---
360360
4．Other 125 591 752 474. 474.
043453543
3030
0.003.908.20
---（III）Profit 151 151 151
allotment 956 956 956
55.455.455.4
55Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
777
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
---
3．Allotmen 151 151 151
t to the
owners (or 956 956 956
shareholders) 55.4 55.4 55.4
777
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
506196111949148282116399
IV. Balance
at the end of 521 159 556 546 319 295 990 2850.00
this term 849. 982 642. 52.1 809. 277 054 331
004.63654427.841.098.93
56Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2022
Other Equity instrument Other
Capita Less: Comp Specia Surplu Total
Items Share Prefer Sustai l Shares rehens lized s
Retain of
capital red Other reserv in ive reserv reserv
ed Other owner
nable
stock es stock Incom e es
profit s’
debt e equity
I.Balance at 5065 1577 1087 9824 6908 2981
the end of 2184 3929 6253 5845. 7911 8023
last year 9.00 75.96 8.39 47 8.40 27.22
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506515771087982469082981
the 2184 3929 6253 5845. 7911 8023
beginning of 9.00 75.96 8.39 47 8.40 27.22
current year
--
III .Changed 7575 1976 1969
in the current 6.02 6851. 1095.year 58 56
（I）Total 5559 56347575
comprehensi 240.8 996.8
ve income 6.02 7 9
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
--（III）Profit
allotment 2532 2532
6092.6092.
57Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
4545
1.Providing
of surplus
reserves
2．Allotmen - -
t to the 2532 2532
owners (or 6092. 6092.shareholders) 45 45
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 1088 9824 6711 2962
at the end of 2184 3929 3829 5845. 1226 11123
this term 9.00 75.96 4.41 47 6.82 1.66
Amount in last year
In RMB
The first half year of 2021
Other Equity instrument Other
Share Capita Less: Comp Specia Surplu
Total
Items Prefer l Shares rehens lized s Retain ofCapita
l red Sustai Other reserv in ive reserv reserv
ed Other owner
es stock Incom e es profit s’stock nable
e equity
58Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
debt
I.Balance at 5077 1583 7525 1076 9495 6764 2962
the end of 7227 3075 438.2 3218 4652. 5403 5952
last year 9.00 09.86 0 6.85 14 3.89 23.54
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
5077158375251076949567642962
the 7227 3075 438.2 3218 4652. 5403 5952
beginning of 9.00 09.86 0 6.85 14 3.89 23.54
current year
-----
III. Changed 26111250 5914 7525 5049 2077
in the current 088.9430.0 533.9 438.2 289.7 726.5
year 00 0 0 7 7
--
（I）Total 26115049 2438
comprehensi 088.9
ve income 289.7 200.80
77
(II) - - -
Investment
or decreasing 1250 5914 7525 3604
of capital by 430.0 533.9 438.2 74.30
owners 0 0 0
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
---
4．Other 1250 5914 7525 3604
430.0533.9438.274.30
000（III）Profit
allotment
1.Providing
of surplus
reserves
2．Allotmen
t to the
owners (or
shareholders)
3．Other
59Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 1025 9495 6790 2960
at the end of 2184 3929 8289 4652. 6512 5174
this term 9.00 75.96 7.08 14 2.79 96.97
III. Basic Information of the Company
Shenzhen Textile (Group) Co. Ltd. (hereinafter referred to as "Company" or "the Company") is a joint-stock
company registered in Guangdong Province with a registered capital of RMB 506.521849 million and a unified
social credit code of 91440300192173749Y. The Company has publicly issued RMB common shares (A shares)
and domestic listed foreign shares (B shares) to the public at home and abroad and listed and traded them. The
Company is headquartered address are 6/FShenfang Building No.3 Huaqiang Road. North Futian District
Shenzhen.The company was previously the Shenzhen Textile Industry Company on April 13 1994 approved by the
Letter(1994)No.15 issued by Shenzhen Municipal People's Government the Company was restructured and
named as Shenzhen Textile (Group) Co. Ltd. ，As of June 30 2022 the Company has issued a total of
506521849.00 shares.
The Company has established the corporate governance structure of General Meeting of Shareholders
Board of Directors and Board of Supervisors and currently has the Board Office Office Strategic
60Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Development Department Operation and Management Department Finance Department Audit Department
Human Resources Department and other departments.The Company is mainly engaged in high-tech industry focusing on R&D production and marketing of polarizers
for liquid crystal display management of properties in bustling business districts of Shenzhen and reserved high-
class textile and garment business.The financial statements have been authorized for issuance of the 15th meeting of the 8th Board of Directors of
the Group on August 232022.I.Scope of consolidated financial statements
As of June 30 2022 A total of 8 subsidiaries of the Company are included in the scope of consolidation. For
details please refer to Note IX "Rights and Interests in Other Subjects".IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and its application guidelines interpretations and other relevant
provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition the
Company also disclosed relevant financial information in accordance with the Rules No.15 for the Information
Disclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on
Financial Report (revised in 2014) issued by China Securities Regulatory Commission.The financial statements are presented on the basis of going concern.The accounting of the Company is based on accrual basis. Except for some financial instruments the
financial statements are based on historical costs. In case of asset impairment impairment provision shall be
made in accordance with relevant regulations.
(2)Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips:
According to its own production and operation characteristics the company determines the depreciation of
fixed assets intangible assets amortization and income recognition policies For specific accounting policies
see "10 Financial Report 5 Important Accounting Policies and Accounting Estimates 24 Fixed Assets" " 10
Financial Report 5 Important Accounting Policies and Accounting Estimates 30 Intangible Assets" "Section
10 Financial Report 5 Important Accounting Policies and Accounting Estimates 39 Revenue".
1. Statement on complying with corporate accounting standards
This financial statement conforms to the requirements of Accounting Standards for Business Enterprises and
truly and completely reflects the combination and financial status of the Company on June 30 2022 as well as
the combination and operating results and cash flow of the Company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the
fiscal year.
61Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Accounting standard money
The Company and its domestic subsidiaries use RMB as their bookkeeping base currency. The overseas
subsidiaries of the Company determine RMB as their bookkeeping base currency according to the currency in
the main economic environment in which they operate. The currency used by the Company in preparing the
financial statements is RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For business combination under the same control the assets and liabilities of the combined party acquired
by the merging party during the combination shall be measured according to the book value of the combined
party in the consolidated financial statements of the final controlling party on the combination date except for
the adjustment due to different accounting policies. The difference between the book value of the combination
consideration and the book value of the net assets obtained in the combination adjusts the capital reserve. If the
capital reserve is insufficient to offset the retained earnings will be adjusted.Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements the share of the book value of the net assets of the combined party in the
consolidated financial statements of the ultimate controlling party shall be taken as the initial investment cost of
the investment on the combination day calculated by the shareholding ratio on the combination day; Adjust the
capital reserve for the difference between the initial investment cost and the book value of the investment held
before the combination plus the book value of the consideration paid on the new day of the combination. If the
capital reserve is insufficient to offset adjust the retained earnings.In the consolidated financial statements the assets and liabilities of the combined party acquired by the
merging party in the combination shall be measured according to the book value in the consolidated financial
statements of the ultimate controlling party on the combination date except for the adjustment due to different
accounting policies; The difference between the book value of the investment held before the combination plus
the book value of the consideration paid on the new day of the combination and the book value of the net assets
obtained during the combination will be adjusted for capital reserve. If the capital reserve is insufficient to offset
the retained earnings will be adjusted. For the long-term equity investment held by the merging party before
obtaining the control right of the combined party the relevant profits and losses other comprehensive income
and other changes in owner's equity have been recognized from the date of obtaining the original equity and the
date when the merging party and the combined party are under the same final control to the combination date
and the initial retained earnings or current profits and losses during the comparative report period shall be offset
respectively.
(2) Business combination involving entities not under common control
For business combination not under the same control the combination cost refers to the assets paid
liabilities incurred or assumed and fair value of the issued equity securities in order to gain control over the
acquiree on the acquisition date. On the acquisition date the acquired assets liabilities and contingent liabilities
of the acquiree are recognized at fair value.The difference between the combination cost and the fair value share of identifiable net assets acquired in
the combination is recognized as goodwill and the accumulated impairment provision is deducted by cost for
subsequent measurement; The difference between the combination cost and the fair value share of identifiable
62Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
net assets acquired by the acquiree in the combination shall be recorded into the current profits and losses after
review.Business combination under the same control shall be achieved step by step through multiple transactions
In individual financial statements the sum of the book value of the equity investment held by the acquiree
before the acquisition date and the new investment cost on the acquisition date is taken as the initial investment
cost of the investment. Other comprehensive income recognized by the equity investment held before the
acquisition date due to accounting by the equity method is not treated on the acquisition date and accounting
treatment is carried out on the same basis as that of the investee's direct disposal of related assets or liabilities;
The owner's equity recognized due to the change of owner's equity of the investee except net profit and loss
other comprehensive income and profit distribution shall be transferred to the current profit and loss during the
disposal period when the investment is disposed. If the equity investment held before the acquisition date is
measured by fair value the accumulated changes in fair value originally included in other comprehensive
income will be transferred to the current profits and losses when accounting by cost method.In the consolidated financial statements the consolidated cost is the sum of the consideration paid on the
acquisition date and the fair value of the equity of the acquiree held before the acquisition date on the
acquisition date. The equity of the acquiree held before the acquisition date shall be re-measured according to
the fair value of the equity on the acquisition date and the difference between the fair value and its book value
shall be included in the current income; Equity of the acquiree held before the acquisition date involves other
comprehensive income and other changes in owner's equity are converted into current income on the
acquisition date except for other comprehensive income arising from the remeasurement of net liabilities or
changes in net assets of the set income plan by the investee.
(3) Treatment of transaction costs in business combination
Intermediary expenses such as auditing legal services evaluation and consultation and other related
management expenses incurred for business combination are included in the current profits and losses when
they occur. Transaction costs of equity securities or debt securities issued as combination consideration are
included in the initial recognition amount of equity securities or debt securities.
6 Compilation method of consolidated financial statements
(1)The scope of consolidation
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee enjoys variable returns by participating in the related
activities of the investee and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of investee
structured subjects etc.).The consolidation scope of consolidated financial statements is determined on the basis of control. Control
refers to that the company has the power over the investee enjoys variable returns by participating in the related
activities of the investee and has the ability to use the power over the investee to affect its return amount.Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of investee
structured subjects etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries and are prepared by the Company according to other relevant information. When preparing the
consolidated financial statements the accounting policies and accounting period requirements of the Company
and its subsidiaries are consistent and major transactions and current balances between companies are offset.
63Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
During the reporting period the subsidiaries and businesses increased due to the business combination under the
same control shall be deemed to be included in the consolidation scope of the Company from the date when
they are controlled by the ultimate controller and their operating results and cash flows from the date when they
are controlled by the ultimate controller shall be included in the consolidated income statement and the
consolidated cash flow statement respectively.During the reporting period the income expenses and profits of subsidiaries and businesses increased
from the acquisition date to the end of the reporting period due to business combination not under the same
control during the reporting period are included in the consolidated income statement and their cash flows are
included in the consolidated cash flow statement.The part of shareholders' equity of subsidiaries that is not owned by the Company is listed separately as
minority shareholders' equity in the consolidated balance sheet; The share of minority shareholders' equity in
the current net profit and loss of subsidiaries is listed as "minority shareholders' profit and loss" under the net
profit item in the consolidated income statement. If the loss of subsidiary shared by minority shareholders
exceeds the share enjoyed by minority shareholders in the initial owner's equity of such subsidiary the balance
still offsets minority shareholders' equity.
(3) Acquisition of minority shareholders' equity of subsidiaries
The capital reserve in the consolidated balance sheet shall be adjusted for the difference between the newly
acquired long-term equity investment cost due to the acquisition of minority shares and the share of net assets
continuously calculated by subsidiaries from the acquisition date or combination date and the difference
between the disposal price obtained from partial disposal of equity investment in subsidiaries without losing
control and the share of net assets continuously calculated by subsidiaries from the acquisition date or
combination date corresponding to the disposal of long-term equity investment. If the capital reserve is
insufficient to offset the retained earnings shall be adjusted.
(4) Treatment of losing control over subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons the remaining equity shall be re-measured according to its fair value on the date of loss of control; The
sum of the consideration obtained from the disposal of equity and the fair value of remaining equity minus the
sum of the share of the original subsidiary's book value of net assets calculated continuously from the
acquisition date and goodwill calculated according to the original shareholding ratio and the difference formed
is included in the investment income of the current period of loss of control.Other comprehensive income related to the original subsidiary's equity investment will be transferred to the
current profits and losses when the control right is lost except for other comprehensive income generated by the
investee's remeasurement of the net liabilities or changes in net assets of the set income plan.
7.Joint venture arrangements classification and Co-operation accounting treatment
Joint venture arrangement refers to an arrangement under the joint control of two or more participants. The
joint venture arrangement of the Company is divided into joint operation and joint venture.
(1) Joint operation
Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets
related to the arrangement and bears the liabilities related to the arrangement.The Company recognizes the following items related to the share of interests in joint operation and carries
out accounting treatment in accordance with the relevant accounting standards for business enterprises:
A. Recognize assets held separately and assets held jointly according to their shares;
B. Recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken
according to their shares;
64Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
C. Recognize the income generated from the sale of its share of joint operating output;
D. Recognize the income generated by the sale of output from joint operation according to their shares;
E. Recognize the expenses incurred separately and recognize the expenses incurred in joint operation
according to their shares.
(2) Joint venture
A joint venture refers to a joint venture arrangement in which the Company only has rights to the net assets
of the arrangement.The Company shall carry out accounting treatment on the investment of the joint venture in accordance
with the provisions on accounting of long-term equity investment by the equity method.
8.Recognition Standard of Cash & Cash Equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer
to investments held by the Company with short term strong liquidity easy conversion into known cash and
little risk of value change.
9.Foreign currency transaction
In case of foreign currency business of the Company the exchange rate determined by a systematic and
reasonable method which is similar to the spot exchange rate on the transaction date shall be used to convert it
into the bookkeeping base currency amount.Balance sheet date: foreign currency monetary items shall be converted at the spot exchange rate on the
balance sheet date. Exchange differences arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition or the previous balance sheet date
are included in the current profits and losses; For foreign currency non-monetary items measured at historical
cost the spot exchange rate on the transaction date is still adopted; Foreign currency non-monetary items
measured at fair value are converted at the spot exchange rate on the fair value determination date and the
difference between the converted bookkeeping base currency amount and the original bookkeeping base
currency amount is included in the current profits and losses.
10.Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or
equity instruments of other parties.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract a financial asset or financial
liability is recognized.Financial assets that meet one of the following conditions shall be derecognized:
* Termination of the contractual right to receive cash flow from the financial asset;
* The financial asset has been transferred and the following conditions for derecognition of financial asset
transfer are met.If all or part of the current obligations of a financial liability have been discharged the financial liability or
part of it shall be derecognized. If the Company (debtor) signs an agreement with the creditor to replace the
existing financial liabilities by assuming new financial liabilities and the contract terms of the new financial
liabilities are substantially different from those of the existing financial liabilities the existing financial
liabilities shall be derecognized and the new financial liabilities shall be recognized at the same time.When trading the financial assets in a conventional way accounting recognition and derecognition shall be
65Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
carried out according to the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets the Company divides financial assets into the following three categories: financial assets
measured at amortized cost financial assets measured at fair value with changes included in other
comprehensive income and financial assets measured at fair value with changes included in current profits and
losses.Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated to be
measured at fair value with changes included in current profits and losses as financial assets measured at
amortized cost:
* The Company's business model of managing such financial assets is to collect contract cash flow as the goal;
* According to the contract terms of the financial asset the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.* After initial recognition such financial assets are measured in amortized cost by the effective interest rate
method. Gains or losses arising from financial assets measured in amortized cost that are not part of any
hedging relationship are included in current profits and losses when derecognition amortization according to
the effective interest rate method or impairment recognition.Financial assets measured at fair value and changes included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
measured at fair value with changes included in current profits and losses as financial assets measured at fair
value with changes included in other comprehensive income:
* The company's business model of managing the financial assets aims at both collecting contract cash flow and
selling the financial assets;
* According to the contract terms of the financial asset the cash flow generated on a specific date is only the
payment of principal and interest based on the unpaid principal amount.After initial recognition the fair value of such financial assets is subsequently measured. Interest impairment
losses or gains and exchange gains and losses calculated by the effective interest rate method are included in the
current profits and losses while other gains or losses are included in other comprehensive income. Upon
termination of recognition the accumulated gains or losses previously included in other comprehensive income
shall be transferred out of other comprehensive income and included in current profits and losses.Financial assets measured at fair value with changes included in current profits and losses
Except for the above financial assets measured at amortized cost and at fair value with changes included in
other comprehensive income the Company classifies all other financial assets as financial assets measured at
fair value with changes included in current profits and losses. At the time of initial recognition in order to
eliminate or significantly reduce accounting mismatch the Company irrevocably designated some financial
assets that should have been measured at amortized cost or at fair value with changes included in other
comprehensive income as financial assets measured at fair value with changes included in current profits and
losses.After initial recognition the financial assets are subsequently measured at fair value and the resulting
gains or losses (including interest and dividend income) are included in the current profits and losses unless the
financial assets are part of the hedging relationship.However for non-trading equity instrument investments the Company can irrevocably designate them as
financial assets measured at fair value with changes included in other comprehensive income upon initial
66Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
recognition. The designation is made on the basis of a single investment and the relevant investment conforms
to the definition of equity instruments from the perspective of the issuer.After initial recognition the fair value of such financial assets is subsequently measured. Dividend income
that meets the requirements is included in profit or loss and other gains or losses and changes in fair value are
included in other comprehensive income. Upon termination of recognition the accumulated gains or losses
previously included in other comprehensive income shall be transferred out of other comprehensive income and
included in retained income.The business model of managing financial asset refers to how the Company manages financial assets to
generate cash flow. The business model determines whether the cash flow of financial assets managed by the
Company comes from contract cash flow sale of financial assets or both. The Company determines the business
model of managing financial assets based on objective facts and specific business objectives of managing
financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether
the contractual cash flow generated by related financial assets on a specific date is only the payment of principal
and interest based on the unpaid principal amount. Where the principal refers to the fair value of financial
assets at initial recognition; Interest includes consideration for the time value of money credit risk related to the
unpaid principal amount in a specific period and other basic borrowing risks costs and profits. In addition the
Company evaluates the contract clauses that may cause changes in the time distribution or amount of cash flow
of financial assets contracts to determine whether they meet the requirements of the above-mentioned contract
cash flow characteristics.Only when the Company changes its business model for managing financial assets all affected financial
assets shall be reclassified on the first day of the first reporting period after the business model changes
otherwise financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value whose changes are included in current profits and losses relevant transaction costs are directly included
in current profits and losses; For other types of financial assets relevant transaction costs are included in the
initial recognition amount. Accounts receivable arising from the sale of products or the provision of labor
services that do not include or take into account significant financing components are initially recognized by the
Company in accordance with the amount of consideration that the Company is expected to be entitled to receive.
(3) Classification and measurement of financial liabilities
At initial recognition the financial liabilities of the Company are classified into: financial liabilities
measured at fair value with changes included in current profits and losses and financial liabilities measured at
amortized cost. For financial liabilities that are not classified as measured at fair value with changes included in
current profits and losses relevant transaction costs are included in their initial recognition amount.Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value with changes included in current profits and losses include
transactional financial liabilities and financial liabilities designated at fair value at initial recognition with
changes included in current profits and losses. Such financial liabilities are subsequently measured according to
fair value and the gains or losses caused by changes in fair value and dividends and interest expenses related to
such financial liabilities are included in current profits and losses.Financial liabilities measured in amortized cost
Other financial liabilities are subsequently measured according to the amortized cost by the effective
interest rate method and the gains or losses arising from derecognition or amortization are included in the
current profits and losses.
67Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
* Contract obligation to deliver cash or other financial assets to other parties.* The contractual obligation to exchange financial assets or financial liabilities with other parties under
potential unfavorable conditions.* Non-derivative contracts that need to be settled or can be settled by the enterprise's own equity
instruments in the future for which the enterprise will deliver a variable number of its own equity instruments
according to this contract.* Derivative contracts that need to be settled or can be settled by the enterprise's own equity instruments
in the future except for derivative contracts that exchange a fixed amount of its own equity instruments for a
fixed amount of cash or other financial assets.Equity instruments refer to contracts that can prove ownership of an enterprise's residual equity in assets
after deducting all liabilities.If the Company can't unconditionally avoid delivering cash or other financial assets to fulfill a contractual
obligation the contractual obligation meets the definition of financial liabilities.If a financial instrument needs to be settled or can be settled by the Company's own equity instrument it
shall be considered whether its own equity instrument used to settle the instrument is a substitute for cash or
other financial assets or it is to enable the holder of such instrument to be entitled to the remaining equity in the
assets after all liabilities are deducted by the issuer. In the former case the instrument is the financial liability of
the Company; In the latter case the instrument is the equity instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
Initially it is measured at the fair value on the day when the derivative transaction contract is signed and
then measured at its fair value. Derivative financial instruments with positive fair value are recognized as an
asset while those with negative fair value are regarded as an liability. Any gains or losses arising from changes
in fair value that do not meet the requirements of hedge accounting are directly included in the current profits
and losses.For mixed instruments including embedded derivative if the main contract is financial assets the relevant
provisions of financial asset classification shall apply to the mixed instruments as a whole. If the main contract
is not a financial asset and the mixed instrument is not measured at fair value with changes included in the
current profits and losses for accounting treatment the embedded derivative is not closely related to the main
contract in terms of economic characteristics and risks and has the same conditions as the embedded derivative
and if the independent instrument meets the definition of derivative the embedded derivative is split from the
mixed instrument and treated as a separate derivative financial instrument. If the embedded derivative cannot be
separately measured at the time of acquisition or on the subsequent balance sheet date the mixed instruments as
a whole are designated as financial assets or financial liabilities measured at fair value with changes included in
the current profits and losses.
(5) Fair value of financial instruments
See Note III. 11 for the determination method of the fair value of financial assets and financial liabilities.
(6) Impairment of financial assets
Based on the expected credit loss the Company will carry out impairment accounting treatment on the
following items and recognize the loss reserve:
* Financial assets measured at amortized cost;
* Receivables and debt investments measured at fair value and included in other comprehensive income;
* Lease receivables;
68Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
* Financial guarantee contracts (except those which are measured at fair value with changes included in
current profits and losses in which the transfer of financial assets does not meet the conditions for
derecognition or those formed by continuing to involve the transferred financial assets).Measurement of expected credit loss
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between the cash flow of all contracts discounted
according to the original real interest rate and the expected cash flow of all contracts receivable according to the
contract that is the present value of all cash shortages.The Company takes into account reasonable and reliable information on historical events current situation
and future economic situation forecasts and uses the risk of default as the weight to calculate the probability
weighted amount of the present value of the difference between the cash flow receivable from the contract and
the cash flow expected to be received to recognize the expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. If
the credit risk of financial instruments has not increased significantly since the initial recognition it is in the
first stage. The Company measures the loss reserve according to the expected credit loss in the next 12 months;
If the credit risk of a financial instrument has increased significantly since its initial recognition but no credit
impairment has occurred it is in the second stage. The Company measures the loss reserve according to the
expected credit loss of the instrument throughout the duration; If a financial instrument has suffered credit
impairment since its initial recognition it is in the third stage. The Company measures the loss reserve
according to the expected credit loss of the instrument throughout the duration.For financial instruments with low credit risk on the balance sheet date the Company assumes that their
credit risk has not increased significantly since the initial recognition and measures the loss reserve according
to the expected credit loss in the next 12 months.The expected credit loss in the whole duration refers to the expected credit loss caused by all possible
default events in the whole expected duration of financial instruments. The expected credit loss in the next 12
months refers to the expected credit loss caused by the financial instrument default event that may occur within
12 months after the balance sheet date (or within the expected duration if the expected duration of the financial
instrument is less than 12 months) which is a part of the expected credit loss in the whole duration.When measuring the expected credit loss the longest period that the Company needs to consider is the
longest contract period during which the enterprise is subject to credit risk (including the option to renew the
contract).For financial instruments in the first and second stages and with low credit risk the Company calculates
interest income based on the book balance before deducting impairment provisions and the actual interest rate.For financial instruments in the third stage the interest income shall be calculated according to their book
balance minus the amortized cost after impairment provision and the actual interest rate.For notes receivable and accounts receivable regardless of whether there is significant financing
component the Company always measures the loss reserve according to the amount equivalent to the expected
credit loss in the whole duration.When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics calculates the expected credit loss on the basis of the combinations and determines the
combination on the following basis:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bill
69Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Notes receivable portfolio 2: commercial acceptance bill
B. Accounts receivable
Accounts receivable portfolio 1: polarizer sales receivable
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own property
Accounts receivable portfolio 4: other receivables
For notes receivable divided into portfolios the Company refers to the historical credit loss experience
and calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the
whole duration based on the current situation and forecasts the future economic situation.For accounts receivable divided into combinations the Company refers to the historical credit loss
experience combines the current situation with the forecast of future economic situation compiles a
comparison table of aging/overdue days of accounts receivable and the expected credit loss rate for the whole
duration and calculates the expected credit loss.Other receivables
The Company classifies other receivables into several combinations according to the credit risk
characteristics and calculates the expected credit losses based on the portfolios. The basis for determining the
portfolio is as follows:
Other receivables portfolio: aging portfolio
For other receivables classified as portfolios the Company calculates the expected credit loss through the
default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.Debt investment and other debt investment
For creditor's rights investment and other creditor's rights investment the Company calculates the expected
credit loss according to the nature of the investment the counterparty and various types of risk exposure and
based on the expected credit loss rate in the next 12 months or the whole duration.Evaluation of significant increase in credit risk
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date the Company determines the relative change of default risk of financial
instruments in the expected duration and evaluates whether the credit risk of financial instruments has
increased significantly since initial recognition.When determining whether the credit risk has increased significantly since the initial recognition the
company considers to obtain reasonable and reliable information without unnecessary extra costs or efforts
including forward-looking information. Information considered by the Company includes:
* The debtor fails to pay the principal and interest according to the expiration date of the contract;
* Serious deterioration of external or internal credit rating (if any) of financial instruments that has occurred or is
expected;
* Serious deterioration of the debtor's operating results that has occurred or is expected;
* Changes in existing or expected technology market economic or legal environment and significant adverse
effects on the debtor's repayment ability of the Company.According to the nature of financial instruments the Company assesses whether credit risks have increased
significantly on the basis of individual financial instruments or financial instrument portfolios. When evaluating
on the basis of financial instrument portfolio the Company can classify financial instruments based on common
credit risk characteristics such as overdue information and credit risk rating.Financial assets with credit impairment
On the balance sheet date the Company evaluates whether the financial assets measured at amortized cost
70Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
and the creditor's rights investments measured at fair value with changes included in other comprehensive
income have suffered credit impairment. When one or more events that adversely affect the expected future
cash flow of a financial asset occur the financial asset becomes a financial asset with credit impairment.Evidence of credit impairment of financial assets includes the following observable information:
* The issuer or debtor has major financial difficulties;
* The debtor violates the contract such as default or overdue payment of interest or principal;
* The Company gives concessions that the debtor will not make under any other circumstances due to economic
or contractual considerations related to the debtor's financial difficulties;
* The debtor is likely to go bankrupt or undergo other financial restructuring;
* The financial difficulties of the issuer or debtor cause the active market of the financial assets to disappear.Presentation of expected credit loss provision
In order to reflect the change of credit risk of financial instruments after initial recognition the Company
re-measures the expected credit loss on each balance sheet date and the resulting increase or reversal amount of
loss reserve shall be included in the current profits and losses as impairment losses or gains. For financial assets
measured in amortized cost the loss reserve shall be offset against the book value of the financial assets listed
in the balance sheet; For creditor's rights investments measured at fair value with changes included in other
comprehensive income the Company recognizes its loss reserve in other comprehensive income which does
not offset the book value of the financial asset.Cancel after verification
If the Company no longer reasonably expects the contract cash flow of financial assets to be fully or
partially recovered it will directly write down the book balance of the financial assets. This write-down
constitutes the derecognition of related financial assets. It usually happens when the Company determines that
the debtor has no assets or income sources to generate enough cash flow to repay the amount to be written down.However according to the Company's procedures for recovering the due amount the written-down financial
assets may still be affected by the implementation activities.If the written-down financial assets are recovered later they will be included in profits and losses of the
current recovery period as the reversal of impairment losses.
(7) Transfer of financial assets
Transfer of financial assets refers to the transfer or delivery of financial assets to another party (transferee)
other than the issuer of the financial assets.If the company has transferred almost all risks and rewards in the ownership of the financial asset to the
transferee the recognition of the financial asset shall be terminated; If almost all risks and rewards on the
ownership of a financial asset are retained the financial asset shall not be derecognized.If the Company has neither transferred nor retained almost all risks and rewards in the ownership of
financial assets it shall be dealt with as follows: if the control of the financial assets is abandoned the financial
assets shall be derecognized and the resulting assets and liabilities shall be recognized; If the control of the
financial assets is not abandoned the relevant financial assets shall be recognized according to the extent of
their continued involvement in the transferred financial assets and the relevant liabilities shall be recognized
accordingly.
(8) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized financial assets and financial liabilities
which can be enforced at present and the Company plans to settle by net amount or at the same time realize
such financial assets and pay off such financial liabilities the financial assets and financial liabilities are listed
in the balance sheet with the amount after offset. In addition financial assets and financial liabilities are listed
separately in the balance sheet and will not be offset against each other.
71Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
11. Notes receivable
For notes receivable and accounts receivable regardless of whether there is significant financing component
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics calculates the expected credit loss on the basis of the combinations and determines the
combination on the following basis:
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: commercial acceptance bill
For notes receivable divided into portfolios the Company refers to the historical credit loss experience and
calculates the expected credit loss through the default risk exposure and the expected credit loss rate of the whole
duration based on the current situation and forecasts the future economic situation.
12. Accounts receivable
For notes receivable and accounts receivable regardless of whether there is significant financing component
the Company always measures the loss reserve according to the amount equivalent to the expected credit loss in
the whole duration.When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost the
Company divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics calculates the expected credit loss on the basis of the combinations and determines the
combination on the following basis:
Accounts receivable portfolio 1: polarizer sales receivable
Accounts receivable portfolio 2: textile and garment sales receivable
Accounts receivable portfolio 3: operating funds receivable from self-own property
Accounts receivable portfolio 4: other receivables
For accounts receivable divided into combinations the Company refers to the historical credit loss experience
combines the current situation with the forecast of future economic situation compiles a comparison table of
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration and calculates
the expected credit loss.
13. Receivable financing
For bills receivable and accounts receivable classified as those measured at fair value and whose changes
are included in other comprehensive income the portion with self-financing period within one year (including
one year) is listed as receivables financing; If the period of self-acceptance is more than one year it shall be
listed as other creditor's rights investment. For relevant accounting policies please refer to Note V (10)
"Financial Instruments" and Note V (10) "Impairment of Financial instruments ".
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
The Company divides the other receivables into several portfolio according to the credit risk characteristics
and calculates the expected credit losses on the basis of determining the portfolio as follows:
Other receivables portfolio: age portfolio:
For accounts receivable divided into combinations the Company refers to the historical credit loss experience
combines the current situation with the forecast of future economic situation compiles a comparison table of
72Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
aging/overdue days of accounts receivable and the expected credit loss rate for the whole duration and calculates
the expected credit loss.
15.Inventory
（1）Investories class
The Company's inventory includes raw materials in-process products low-value consumables packaging
materials inventory goods and issued goods.
(2) Pricing method of issued inventory
The Company's inventory is priced at the actual cost when it is acquired. The weighted average method is
adopted when raw materials and inventory goods are issued.
(3) Determination basis of net realizable value of inventory and accrual method of inventory depreciation
reserve
The net realizable value of inventory is the estimated selling price of inventory minus the estimated costs
to be incurred upon completion estimated sales expenses and related taxes. For determination of the net
realizable value of inventories the solid evidence shall serve as the basis and the purpose of holding
inventories and the influence of events after the balance sheet date shall be considered.On the balance sheet date if the inventory cost is higher than its net realizable value inventory
depreciation reserve shall be made. The Company usually accrues the inventory depreciation reserve according
to individual inventory items. On the balance sheet date if the influencing factors of previous inventory value
written down have disappeared the inventory depreciation reserve will be returned within the originally accrued
amount.
(4) Inventory system of inventory
Perpetual inventory system is adopted for the Company's inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables and packaging materials of the Company are amortized by one-time write-off
method.
16.Contract assets
The Company lists the customer's unpaid contract consideration for which the Company has fulfilled its
performance obligations according to the contract and which is not the right to collect money from customers
unconditionally (that is only depending on the passage of time) as a contract asset in the balance sheet. Contract
assets and liabilities under the same contract are listed in net amount while contract assets and liabilities under
different contracts are not offset.
17.Contract Cost
Contract costs include incremental costs incurred for obtaining contracts and contract performance costs.The incremental cost incurred for obtaining the contract refers to the cost that the Company will not incur
without obtaining the contract (such as sales commission etc.). If the cost is expected to be recovered the
Company will recognize it as the contract acquisition cost as an asset. Other expenses incurred by the Company to
obtain the contract except the incremental cost expected to be recovered are included in the current profits and
losses when incurred.If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for enterprises such as inventory and meets the following conditions at the same time the Company will
recognize it as the contract performance cost as an asset:
73Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
* Such cost is directly related to a current or expected contract including direct labor direct materials
manufacturing expenses (or similar expenses) costs clearly borne by the customer and other costs incurred only
due to this contract;
* Such cost increases the resources of the Company for fulfilling its performance obligations in the future;
* The cost is expected to be recovered.Assets recognized by contract acquisition cost and assets recognized by contract performance cost
(hereinafter referred to as "Assets Related to Contract Cost") shall be amortized on the same basis as the revenue
recognition of goods or services related to the assets and shall be included in current profits and losses.When the book value of the assets related to the contract cost is higher than the difference between the
following two items the Company will accrue impairment provision of the excess and recognize it as the asset
impairment loss:
* The remaining consideration expected to be obtained by the Company due to the transfer of goods or
services related to the asset;
* The estimated cost to be incurred for transferring the related goods or services.The contract performance cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at the time of initial recognition which shall be listed in "Inventory" and the amortization
period for more than one year or one normal business cycle at the time of initial recognition shall be listed in
"Other Non-current Assets".The contract acquisition cost recognized as an asset shall be amortized for no more than one year or one
normal business cycle at initial recognition and shall be listed in "Other Current Assets". The amortization period
for initial recognition shall exceed one year or one normal business cycle and shall be listed in "Other Non-
current Assets".
18.Held-for-sale assets
(1) Classification and measurement of non-current assets or disposal groups held for sale
When the book value of a non-current asset or disposal group is recovered by the Company mainly by
selling it (including the exchange of non-monetary assets with commercial nation) rather than continuously
using it the non-current asset or disposal group is classified as held for sale.The above-mentioned non-current assets do not include investment real estate measured by fair value
model biological assets measured by net amount of fair value minus selling expenses assets formed by
employee compensation financial assets deferred income tax assets and rights arising from insurance contracts.The disposal group refers to a group of assets disposed of together by sale or other means in a transaction
as a whole and liabilities directly related to these assets transferred in the transaction. Under certain
circumstances the disposal group includes goodwill obtained in business combination etc.Meanwhile non-current assets or disposal groups that meet the following conditions are classified as held-
for-sale: according to the practice of selling such assets or disposal groups in similar transactions the non-
current assets or disposal groups can be sold immediately under the current situation; The sale is very likely to
happen that is a resolution has been made on a sale plan and a certain purchase commitment has been obtained
and it is expected that the sale will be completed within one year. If the control over subsidiaries is lost due to
the sale of investments in subsidiaries whether or not the Company retains part of the equity investments after
the sale when the investment in subsidiaries to be sold meets the classification conditions of holding for sale
the investment in subsidiaries will be classified as held-for-sale as a whole in individual financial statements
and all assets and liabilities of subsidiaries will be classified as held-for-sale in consolidated financial statements.When the non-current assets or disposal groups held for sale are initially measured or re-measured on the
74Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
balance sheet date the difference between the book value and the net amount after deduction of the sales
expenses from the fair value is recognized as the asset impairment loss. For the amount of asset impairment loss
recognized by the disposal group held for sale the book value of goodwill in the disposal group is offset first
and then the book value of non-current assets in the disposal group is offset proportionally.If the net amount of non-current assets held for sale or disposal group's fair value minus sales expenses
increases on the subsequent balance sheet date the previously written-down amount will be restored and
reversed within the amount of asset impairment loss recognized after being classified as held-for-sale and the
reversed amount will be included in the current profits and losses. The book value of offset goodwill shall not
be reversed.Non-current assets held for sale and assets in disposal group held for sale are not depreciated or amortized;
Interest and other expenses of liabilities in disposal group held for sale continue to be recognized. All or part of
the investments of associated enterprises or joint ventures classified as held for sale shall be accounted for by
the equity method for those classified as held for sale while those retained (not classified as held for sale) shall
continue to be accounted for by the equity method; When the Company loses significant influence on the
associated enterprises and joint ventures due to the sale it shall stop using the equity method.If a certain non-current asset or disposal group is classified as held-for-sale but the classification
conditions of held-for-sale are no longer met the Company will stop classifying it as held-for-sale and measure
it according to the lower of the following two amounts:
* The book value of the asset or disposal group before it is classified as held-for-sale and the amount
adjusted according to the depreciation amortization or impairment that should have been recognized without
being classified as held-for-sale;
* Recoverable amount.
19.Creditor's rights investment
Creditor's rights investment mainly accounts for bond investment measured by amortized cost etc. The
Company has measured the impairment loss based on the amount of expected credit losses in the next 12
months or the entire duration based on whether the credit risk has increased significantly since the initial
recognition.
20.Other Creditor's rights investment
For creditor's rights investment and other creditor's rights investment the Company calculates the expected
credit loss according to the nature of the investment the counterparty and various types of risk exposure and
based on the expected credit loss rate in the next 12 months or the whole duration.
21.Long-term account receivable
None
22.Long-term equity investments
Long-term equity investment includes equity investment in subsidiaries joint ventures and associated
enterprises. If the Company can exert significant influence on the investee it is an associated enterprise of the
Company.
75Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(1) Determination of initial investment cost
Long-term equity investment forming business combination: the long-term equity investment obtained by
business combination under the same control shall be taken as the investment cost according to the book value
share of the owner's equity of the combined party in the consolidated financial statements of the final
controlling party on the combination date; Long-term equity investment obtained by business combination not
under the same control shall be regarded as the investment cost of long-term equity investment according to the
combination cost.For long-term equity investment obtained by other means: For long-term equity investment obtained by
payment in cash the actual purchase price is taken as the initial investment cost; For long-term equity
investment obtained by issuing equity securities the fair value of issuing equity securities is taken as the initial
investment cost.
(2) Subsequent measurement and profit and loss recognition method
Investment in subsidiaries shall be accounted by cost method unless the investment meets the conditions
of holding for sale; Investment in associated enterprises and joint ventures shall be accounted for by equity
method.For the long-term equity investment calculated by the cost method except for the cash dividends or profits
that have been declared but not yet issued and that included in the actual payment or consideration the cash
dividends or profits declared and distributed by the investee are recognized as investment income and included
in the current profits and losses.If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee the investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost is less than the fair value share of the identifiable net assets of
the investee at the time of investment the book value of the long-term equity investment shall be adjusted and
the difference shall be included in the profit and loss of the current investment period.In case of accounting by equity method the investment income and other comprehensive income are
recognized respectively according to the share of net profits and losses and other comprehensive income
realized by the investee and the book value of long-term equity investment is adjusted at the same time;
According to the profit or cash dividend declared and distributed by the investee the part to be entitled to shall
be calculated and the book value of long-term equity investment shall be reduced correspondingly; The
investee adjusts the book value of long-term equity investment for other changes in owner's equity except net
profits and losses other comprehensive income and profit distribution and includes them in capital reserve
(other capital reserve). When recognizing the share of the net profit and loss of the investee the fair value of
identifiable assets of the investee at the time of investment is taken as the basis and the net profit of the investee
is recognized after adjustment according to the accounting policies and accounting periods of the Company.If it can exert significant influence on the investee due to additional investment or implement joint control
but does not constitute control on the conversion date the sum of the fair value of the original equity plus the
new investment cost shall be taken as the initial investment cost calculated by the equity method instead. The
difference between the fair value and book value of the original equity on the conversion date as well as the
accumulated fair value changes originally included in other comprehensive income are transferred to the
current profits and losses accounted for by the equity method.If the joint control or significant influence on the investee is lost due to the disposal of some equity
investments the remaining equity after disposal shall be accounted for according to Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of Financial Instruments on the date of loss of joint
control or significant influence and the difference between fair value and book value shall be included in the
76Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
current profits and losses. Other comprehensive income recognized by the original equity investment due to the
adoption of the equity method shall be accounted for on the same basis as the direct disposal of related assets or
liabilities by the investee when the equity method is terminated; Changes in other owners' equity related to the
original equity investment are transferred into current profits and losses.If the control over the investee is lost due to the disposal of part of equity investment and the remaining
equity after disposal can jointly control or exert significant influence on the investee it shall be accounted for
according to the equity method instead and the remaining equity shall be regarded as being adjusted by the
equity method when it is acquired; If the remaining equity after disposal cannot exercise joint control or exert
significant influence on the investee it shall be accounted for according to the relevant provisions of
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
and the difference between its fair value and book value on the date of loss of control shall be included in the
current profits and losses.If the Company's shareholding ratio decreases due to capital increase of other investors causing loss of
control but it can exercise joint control or exert significant influence on the investee the share of net assets
increased by the investee due to capital increase and share expansion shall be recognized according to the new
shareholding ratio and the difference between the original book value of long-term equity investment
corresponding to the decreased shareholding ratio shall be included in the current profits and losses; Then
according to the new shareholding ratio it is regarded as being adjusted by the equity method when the
investment is obtained.For unrealized internal transaction gains and losses between the Company and its associated enterprises
and joint ventures the portion attributable to the Company shall be calculated according to the shareholding
ratio and investment gains and losses shall be recognized on the basis of offset. However if the unrealized
internal transaction losses between the Company and the investee are the impairment losses of the transferred
assets they will not be offset.
(3) Basis for determination of joint control and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement
and the relevant activities of such arrangement must be unanimously agreed by the participants who share the
control rights before any decision is made. When judging whether there is common control firstly judge
whether all participants or a combination of participants collectively control the arrangement and secondly
judge whether the decision-making of activities related to the arrangement must be unanimously agreed by the
participants who collectively control the arrangement. If all participants or a group of participants must act in
concert to decide the relevant activities of an arrangement it is considered that all participants or a group of
participants collectively control the arrangement; If two or more participants can collectively control an
arrangement it does not constitute joint control. When judging whether it is joint control the protective rights
entitled to are not considered.Significant influence means that the investor has the right to participate in the decision-making on the
financial and operating policies of the investee but cannot control or jointly control the formulation of these
policies with other parties. When determining whether it can exert significant influence on the investee the
influence of the voting shares of the investee directly or indirectly held by the investor and the current
executable potential voting rights held by the investor and other parties shall be considered including the
influence of the current convertible warrants share options and convertible corporate bonds issued by the
investee.When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the
voting shares of the investee it is generally considered to have a significant influence on the investee unless
77Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
there is clear evidence that it cannot participate in the production and operation decisions of the investee under
such circumstances in which case it does not have a significant influence; When the Company owns less than
20% (excluding) of the voting shares of the investee it is generally not considered to have a significant
influence on the investee unless there is clear evidence that it can participate in the production and operation
decisions of the investee under such circumstances in which case it has a significant influence.
(4) Equity investment held for sale
If all or part of the equity investment in an associated enterprise or joint venture is classified as assets held
for sale please refer to Note III. 13 for relevant accounting treatment.For the remaining equity investments that are not classified as assets held for sale the equity method is
adopted for accounting treatment.If the equity investment in an associated enterprise or joint venture that has been classified as held for sale
no longer meets the classification conditions of assets held for sale the equity method shall be used for
retrospective adjustment from the date that it is classified as assets held for sale.
(5) Test method for impairment and accrual method for impairment provision
For investment in subsidiaries associated enterprises and joint ventures please refer to Note III. 31 for the
accrual method for impairment provision.
23.Investment real estate
The measurement mode of investment property
The company shall adopt the cost mode to measure the investment property.Depreciation or Amortization Method
Investment real estate refers to real estate held for rent or capital appreciation or both. The Company's
investment real estate includes leased land use rights land use rights transferred after holding and preparing for
appreciation and leased buildings.The Company's investment real estate is initially measured according to the cost at the time of acquisition
and depreciation or amortization is accrued on schedule according to the relevant provisions of fixed assets or
intangible assets.For investment real estate that is subsequently measured by cost model please refer to Note III. 31 for the
accrual method of asset impairment.The difference between the disposal income from the sale transfer scrapping or damage of investment real
estate after deduction of its book value and related taxes shall be included in the current profits and losses.
24.Fixed assets
(1) Recognition conditions of fixed assets
The Company's fixed assets refer to tangible assets held for the production of commodities provision of labor
services leasing or operation and management with a service life exceeding one fiscal year.Only when the economic benefits related to the fixed assets are likely to flow into the enterprise and the cost of
the fixed assets can be measured reliably can the fixed assets be recognized.The fixed assets of the Company are initially measured according to the actual cost at the time of
acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic
benefits related to them are likely to flow into the Company and the cost can be measured reliably; Daily repair
expenses of fixed assets that do not meet the requirements for subsequent expenditures of capitalization of fixed
assets are included in the current profits and losses or the cost of related assets according to the beneficiaries
78Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
when they occur. For the replaced part the book value is derecognized.
(2) The method for depreciation
Expected useful Estimated
The method for depreciation Depreciation
life（Year） residual value
House and Building- Production Straight-line method 35 4 2.74
House and Building-Non- Production Straight-line method 40 4 2.40
Decoration of Fixed assets Straight-line method 10 10.00
Machinery and equipment Straight-line method 10-14 4 9.60-6.86
Transportation equipment Straight-line method 8 4 12.00
Electronic equipment Straight-line method 5 4 19.20
Other equipment Straight-line method 5 4 19.20
The company uses the life average method to calculate the depreciation. Depreciation of fixed assets starts from
reaching the predetermined usable state ends of confirmation or divided into non-current assets for sale.Among them for the fixed assets that have been prepared for impairment the accumulated amount of the fixed
assets shall be calculated to determine the depreciation rate.At the end of each year the Company reviews the service life estimated net residual value and depreciation
method of the fixed assets.If the service life estimate of fixed assets is different from the original estimate the estimated service life of
fixed assets is adjusted; if the estimated net residual value is different.Terminates recognition of the fixed asset when it is disposed of or is expected to yield no economic benefit
through use or disposal. The amount of disposal income from the sale transfer scrapping or destruction of fixed
assets excluding its book value and related taxes shall be included in the current profit and loss.
(3)Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when
they meet one or more of the following criteria: * Upon expiration of the lease term the ownership of the
leased assets shall be transferred to the Company.* The Company has the option right to purchase the leased
assets and the concluded purchase price is expected to be far lower than the fair value of the leased assets when
exercising the option right. Therefore the exercise of this option right by the Company can be determined
reasonably on the starting date of the lease.* Even though the ownership of the assets is not transferred the
lease term accounts for most of the service life of the leased assets.* The present value of the minimum lease
payment of the Company on the lease start date is almost equal to the fair value of the leased assets on the lease
start date.* In case of special properties of the leased assets and no large alteration only the Company can use
them. Fixed assets leased by finance lease shall be recorded at the lower of the fair value of the leased assets on
the lease start date and the present value of the minimum lease payment. The minimum lease payment is taken
as the recorded value of long-term payables and the difference is taken as unrecognized financing expenses.
79Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Initial direct expenses such as handling fees attorney fees travel expenses stamp duty etc. which occur during
the lease negotiation and signing of the lease contract are included in the value of the leased assets.Unrecognized financing expenses are amortized by the effective interest rate method in each period of the lease
term.Fixed assets leased by financing shall be depreciated by adopting policies consistent with the self-owned
fixed assets. If it can be reasonably determined that the ownership of the leased asset will be acquired upon the
expiration of the lease term depreciation shall be accrued within the serviceable life of the leased asset; If it is
impossible to reasonably determine that the ownership of the leased asset can be acquired at the expiration of
the lease term depreciation shall be accrued within the shorter of the lease term and the serviceable life of the
leased asset.
25.Construction in progress
The cost of construction in progress of the Company is determined according to the actual project
expenditure including all necessary project expenditures incurred during the construction period borrowing
costs that should be capitalized before the project reaches the intended usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches the scheduled usable state.See Note V. 31 for the method of depreciation of assets in construction in progress.
26.Borrowing costs
(1) Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributed to the purchase construction or
production of assets that meet the capitalization conditions they will be capitalized and included in the relevant
asset costs; Other borrowing costs when incurred are recognized as expenses according to the amount incurred
and included in current profits and losses. Borrowing costs shall be capitalized if they meet the following
conditions at the same time:
* Asset expenditure has already occurred including the expenditure incurred in the form of payment in
cash transfer of non-cash assets or assumption of interest-bearing debts for the purchase construction or
production of assets that meet the capitalization conditions;
* Borrowing costs have already occurred;
* The purchase construction or production activities necessary to make the assets reach the intended
usable or saleable state have started.
(2) Capitalization period of borrowing costs
Capitalization of borrowing costs shall be stopped when assets eligible for capitalization acquired
constructed or produced by the Company reach the intended usable or saleable state. Borrowing costs incurred
after the assets in line with the capitalization conditions reach the intended usable or saleable state shall be
recognized as expenses according to the amount incurred when they occur and shall be included in current
profits and losses.If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase
construction or production and the interruption lasts exceeds 3 months the capitalization of borrowing costs
shall be suspended; Borrowing costs during normal interruption period continue to be capitalized.
(3) Capitalization rate of borrowing costs and calculation method of capitalization amount
The interest expenses actually incurred in the current period of special borrowing shall be capitalized after
deducting the interest income from the unused borrowing funds deposited in the bank or the investment income
from temporary investment; The capitalization amount of general borrowings is determined by multiplying the
weighted average of the accumulated asset expenditure over the special loan by the capitalization rate of the
occupied general borrowings. Capitalization rate is calculated and determined according to the weighted
80Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
average interest rate of general borrowings.During the capitalization period all the exchange differences of special borrowings in foreign currency are
capitalized; Exchange differences of general borrowings in foreign currency are included in current profits and
losses.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
(1) Conditions for recognizing the right-to-use assets
The Company's right-to-use assets refers to the right of the Company as the lessee to use the leased assets during
the lease term.On the start date of the lease term the right-to-use assets is initially measured at cost. The cost includes: the initial
measurement amount of lease liabilities; The lease payment amount issued on or before the start date of the lease
term where if there is a lease incentive the amount related to the entitled lease incentive shall be deducted; The
initial direct expenses incurred by the Company as the lessee; The cost expected to be incurred by the Company as
the lessee to dismantle and remove the leased assets restore the site where the leased assets are located or restore
the leased assets to the state agreed in the lease terms. The Company as the lessee recognizes and measures the
demolition and restoration costs in accordance with the Accounting Standards for Business Enterprises No.13-
Contingencies. Subsequent adjustments shall be made to any remeasurement of lease liabilities.
(2) Depreciation method of right-to-use assets
The Company adopts the straight-line method to accrue depreciation. If the Company as the lessee can
reasonably determine that the ownership of the leased assets is acquired at the expiration of the lease term
depreciation shall be accrued within the remaining service life of the leased assets. If it cannot be reasonably
determined that the ownership of the leased assets can be obtained at the expiration of the lease term depreciation
shall be accrued during the lease term or the remaining service life of the leased assets whichever is shorter.See Note VI.31 for the impairment test method of the right-to-use assets and the provision method for impairment.
30.Intangible assets
(1)The intangible assets of the Company include land use rights proprietary technology and software.
Intangible assets are initially measured at cost and their service life is analyzed and judged when they are
acquired. If the service life is limited the intangible assets shall be amortized within the expected service life by
the amortization method that can reflect the expected realization mode of the economic benefits related to the
assets from the time when they are available for use; If it is impossible to reliably determine the expected
realization mode they shall be amortized by straight-line method; Intangible asset\s with uncertain service life
are not amortized.
81Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Amortization methods of intangible assets with limited service life are as follows:
Items Useful life（year） Amortization method Notes
Land use right 50 Straight
Special technoloogy 15 Straight
Software 5 Straight
At the end of each year the Company rechecks the service life and amortization method of intangible
assets with limited service life adjusts the original estimate if it is different from the previous estimate and
handles the change according to the accounting estimate.On the balance sheet date if it is estimated that an intangible asset can no longer bring future economic
benefits to the enterprise all the book value of the intangible asset will be transferred to the current profits and
losses.
（2）Accounting Policy of Internal Research and Development Expenditure
The Company divides the expenditure of internal research and development projects into expenditures in
research stage and expenditures in development stage.Expenditures in research stage are included in current profits and losses when they occurs.Expenditures in development stage can only be capitalized if they meet the following conditions: it is
technically feasible to complete the intangible assets so that they can be used or sold; There is the intention to
complete the intangible assets and use or sell them; The ways in which intangible assets generate economic
benefits including those that can prove the existence of market for products produced by the intangible assets or
the existence of market for the intangible assets themselves and that for the intangible assets that will be used
internally their usefulness can be proved; There are sufficient technical financial and other resources to
complete the development of the intangible assets and the ability to use or sell the intangible assets;
Expenditures attributable to the development stage of the intangible assets can be measured reliably.Development expenditures that do not meet the above conditions are included in current profits and losses.The research and development project of the Company will enter the development stage after the above
conditions are met and a project is approved through technical feasibility and economic feasibility study.Capitalized expenditures in development stage are listed as development expenditures on the balance sheet
and are converted into intangible assets from the date when the project reaches the intended purpose.
31.Long-term Assets Impairment
The asset impairment of long-term equity investment of subsidiaries associated enterprises and joint
ventures investment real estate fixed assets construction in progress intangible assets goodwill etc. (except
inventory investment real estate measured according to fair value model deferred income tax assets and
financial assets) shall be determined according to the following methods:
On the balance sheet date judge whether there is any sign of possible impairment of assets. If there is any
sign of impairment the Company will estimate its recoverable amount and conduct impairment test. The
goodwill formed by business combination intangible assets with uncertain service life and intangible assets that
have not yet reached the usable state are tested for impairment every year regardless of whether there is any
sign of impairment.The recoverable amount is determined according to the higher of the net amount of the fair value of the
asset minus the disposal expenses and the present value of the estimated future cash flow of the asset. The
Company estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the
82Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
recoverable amount of a single asset the recoverable amount of the asset group shall be determined based on
the asset group to which the asset belongs. The identification of asset group is based on whether the main cash
inflow generated by asset group is independent of cash inflow of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company will
write down its book value to the recoverable amount and the written-down amount will be included in the
current profits and losses and the corresponding asset impairment provision will be accrued at the same time.As far as the impairment test of goodwill is concerned the book value of goodwill formed by business
combination is amortized to relevant asset groups according to a reasonable method from the acquisition date; If
it is difficult to amortize to the related asset group it shall be amortized to the related asset group portfolio. The
related asset group or asset group portfolio is one that can benefit from the synergy effect of business
combination and is not larger than the reporting segment determined by the Company.In the impairment test if there are signs of impairment in the asset group or asset group portfolio related to
goodwill firstly the asset group or asset group portfolio without goodwill shall be tested for impairment the
recoverable amount shall be calculated and the corresponding impairment loss shall be recognized. Then
impairment test shall be carried out on the asset group or asset group portfolio containing goodwill and its book
value shall be compared with the recoverable amount. If the recoverable amount is lower than the book value
the impairment loss of goodwill shall be recognized.Once the asset impairment loss is recognized it will not be reversed in future accounting periods.
32.Long-term deferred expenses
The long-term deferred expenses incurred by the Company are priced at actual cost and amortized equally
according to the expected benefit period. For long-term deferred expense items that cannot benefit future
accounting periods all their amortized values are included in current profits and losses.
33.Contract liabilities
Contract liabilities refer to the obligation of the Company to transfer goods to customers for the received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company has
obtained the unconditional collection right before the Company transfers the goods to the customer the Company
will list the received or receivable amount as the contract liability at the earlier of the actual payment made by the
customer and the due date for payment. Contract assets and liabilities under the same contract are listed in net
amount while contract assets and liabilities under different contracts are not offset.
34.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period when employees provide services the Company recognizes the actual wages
bonuses social insurance premiums such as medical insurance premiums work-related injury insurance
premiums and maternity insurance premiums paid for employees and housing provident funds as liabilities and
includes them in current profits and losses or related asset costs. If the liability is not expected to be fully paid
within twelve months after the end of the annual reporting period when employees provide relevant services
and the financial impact is significant the liability will be measured at the discounted amount.
2. Accounting Treatment Method of Severance Benefit Plans
After-service benefit plan includes defined contribution plan and defined benefit plans. Where the set
83Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
deposit plan refers to the post-employment benefits plan in which the enterprise no longer undertakes further
payment obligations after paying fixed fees to independent funds; Set benefit plan refers to the post-
employment benefits plan except the set deposit plan.Set deposit plan
The set deposit plan includes basic old-age insurance unemployment insurance and enterprise annuity plan
etc.In addition to the basic old-age insurance the Company establishes an enterprise annuity plan ("annuity
plan") according to the relevant policies of the national enterprise annuity system and employees can
voluntarily participate in the annuity plan. Moreover the Company has no other significant social security
commitments for employees.During the accounting period when employees provide services the amount that should be paid according
to the set deposit plan is recognized as a liability and included in the current profits and losses or related asset
costs.Set benefit plan
For set benefit plans an actuarial valuation is conducted by an independent actuary on the annual balance
sheet date and the cost of benefit provision is determined by the expected cumulative benefit unit method. The
employee remuneration cost caused by set benefit plans of the Company includes the following components:
* Service cost including current service cost past service cost and settlement gain or loss. Where: the
current service cost refers to the increase of the present value of set benefit plan obligations caused by the
employees providing services in the current period; Past service cost refers to the increase or decrease of the
present value of set benefit plan obligations related to employee service in previous period caused by the
modification of set benefit plans.* The net interest of set benefit plan's net liabilities or net assets including interest income of planned
assets interest expense of set benefit plan obligations and interest affected by asset ceiling.* Changes arising from remeasurement of net liabilities or net assets of set benefit plans.Unless other accounting standards require or allow employee benefit costs to be included in asset costs the
Company will include the above items * and * in current profits and losses; Include item * in other
comprehensive income and such item will not be transferred back to profit or loss in the subsequent accounting
period. When the original set benefit plan is terminated all the parts originally included in other comprehensive
income will be carried forward to undistributed profits within the scope of equity.
3. Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees the employee remuneration liabilities arising
from the dismissal benefits shall be recognized and included in the current profits and losses on the earlier of
the following dates: When the Company cannot unilaterally withdraw the dismissal benefits provided by the
termination of labor relations plan or layoff proposal; When the Company recognizes the costs or expenses
related to the reorganization involving the payment of dismissal benefits.If the employee's internal retirement plan is implemented the economic compensation before the official
retirement date is the dismissal benefit. From the day when the employee stops providing services to the normal
retirement date the wages of the retired employees and the social insurance premiums paid will be included in
the current profits and losses at one time. Economic compensation after the official retirement date (such as
normal pension) shall be treated as post-employment benefits.
84Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits provided by the Company to employees meet the conditions for the
set deposit plan they shall be handled in accordance with the above-mentioned relevant provisions on the set
deposit plan. If it meets the set benefit plans it shall be handled in accordance with the above-mentioned
relevant regulations on set benefit plans but the part of the related employee remuneration cost which is "the
change caused by remeasurement of set benefit plan's net liabilities or net assets" shall be included in the
current profits and losses or related asset costs.
35.Lease liabilities
The company initially measures the lease liabilities according to the present value of the unpaid lease payments at
the beginning of the lease term. When calculating the present value of the lease payments the company adopts the
interest rate included in the lease as the discount rate; If the interest rate included in the lease cannot be
determined the company's incremental borrowing interest rate shall be adopted as the discount rate. Lease
payments include:
* The fixed payment amount and the actual fixed payment amount after deducting the relevant amount of lease
incentive;
* Variable lease payments based on indices or ratios;
* If the company reasonably determines that the option will be exercised the lease payment includes the exercise
price of the purchase option;
* If the lease term reflects that the company will exercise the option to terminate the lease the lease payment
includes the payment required to exercise the option to terminate the lease;
* The amount expected to be paid according to the guaranteed residual value provided by the company.The company calculates the interest expense of the lease liability in each period of the lease term according to the
fixed discount rate and records it into the current profit and loss or relevant asset cost.The amount of variable lease payments not included in the measurement of lease liabilities shall be included in the
current profits and losses or relevant asset costs when actually incurred.
36. Estimated Liabilities
If the obligation related to contingencies meets the following conditions at the same time the Company
will recognize it as estimated liabilities:
(1) Such obligation is the current obligation undertaken by the Company;
(2) The performance of such obligation is likely to lead to the outflow of economic benefits from the
Company;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations and factors such as risks uncertainties and time value of money related to
contingencies are comprehensively considered. If the time value of money has great influence the best estimate
is determined by discounting the related future cash outflow. The Company rechecks the book value of the
estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate.If all or part of the expenses required to pay off the recognized estimated liabilities are expected to be
compensated by a third party or other parties the compensation amount can only be recognized as an asset
when it is basically confirmed that it can be received. The recognized compensation amount shall not exceed the
85Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
book value of the recognized liabilities.
37. Share payment
(1) Types of share-based payment
The share-based payment of the Company is divided into equity-settled share-based payment and cash-
settled share-based payment.
(2) Method for determining fair value of equity instruments
The fair value of equity instruments such as options granted by the Company with active market is
determined according to the quoted price in the active market. The fair value of granted equity instruments such
as options without active market is determined by option pricing model. The selected option pricing model
considers the following factors: A. The exercise price of options; B. The validity period of the option; C. The
current price of the underlying shares; D. Estimated volatility of share price; E. Expected dividend of shares; F.Risk-free interest rate within the validity period of the option.
(3) Basis for determining the best estimation of feasible equity instruments
On each balance sheet date during the waiting period the Company makes the best estimate based on the
latest available follow-up information such as changes in the number of employees with feasible rights and
revises the estimated number of equity instruments with feasible rights. On the vesting date the final estimated
number of vesting rights and interests instruments shall be consistent with the actual number of vesting rights.
(4) Accounting treatment related to implementation modification and termination of share-based payment
plan
Equity-settled share-based payment is measured at the fair value of equity instruments granted to
employees. If the right is exercised immediately after the grant the relevant costs or expenses shall be included
in the fair value of equity instruments on the grant date and the capital reserve shall be increased accordingly. If
the rights can be exercised only after the services within the waiting period are completed or the specified
performance conditions are met on each balance sheet date within the waiting period based on the best
estimate of the number of equity instruments available the services obtained in the current period shall be
included in the relevant costs or expenses and capital reserve according to the fair value on the grant date of
equity instruments. After the vesting date the recognized related costs or expenses and the total owner's equity
will not be adjusted.Equity-settled share-based payment shall be measured according to the fair value of liabilities calculated
and determined on the basis of shares or other equity instruments undertaken by the Company. If the right is
exercised immediately after the grant the fair value of the liabilities assumed by the Company shall be included
in the relevant costs or expenses on the grant date and the liabilities shall be increased accordingly. For cash-
settled share-based payment that is feasible only after the service within the waiting period is completed or the
specified performance conditions are met on each balance sheet date within the waiting period based on the
best estimation of the feasibility and according to the fair value of the liabilities assumed by the Company the
services obtained in the current period are included in the costs or expenses and corresponding liabilities. On
each balance sheet date and settlement date before the settlement of related liabilities the fair value of liabilities
shall be re-measured and the changes shall be included in the current profits and losses.When the Company modifies the share-based payment plan if the fair value of the granted equity
instruments is increased by modification the increase of the services obtained shall be recognized according to
the increase of the fair value of the equity instruments; If the number of granted equity instruments is increased
by modification the fair value of the increased equity instruments will be recognized as the increase in services
obtained accordingly. The increase of fair value of equity instruments refers to the difference between the fair
86Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
values of equity instruments before and after modification on the modification date. If the total fair value of
share-based payment is reduced by modification or the terms and conditions of the share-based payment plan
are modified in other ways that are unfavorable to employees the accounting treatment of the obtained services
will continue as if with no changes unless the Company cancels some or all of the granted equity instruments.During the waiting period if the granted equity instruments are cancelled (except those cancelled due to
non-market conditions that do not meet the feasible rights conditions) the Company will treat the cancellation
of the granted equity instruments as an accelerated exercise and immediately record the amount to be
recognized in the remaining waiting period into the current profits and losses and recognize the capital reserve
at the same time. If the employee or other party can choose to meet the non-feasible right condition but fails to
meet it during the waiting period the Company will treat it as a cancellation for granting equity instruments.
38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Revenue
Accounting policies adopted for income recognition and measurement
(1) General principles
The Company has fulfilled the performance obligation in the contract that is to recognize the revenue
when the customer obtains the control right of related goods or services.If the contract contains two or more performance obligations the Company will amortize the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods or services promised by each individual performance obligation on the contract start date and
measure the income according to the transaction price amortized to each individual performance obligation.When one of the following conditions is met the Company will fulfill its performance obligations within a
certain period of time; Otherwise it performs the performance obligation at a certain time:
* The customer obtains and consumes the economic benefits brought by the Company's performance at
the same time of the its performance.* Customers can control the goods under construction during the performance of the Company.* The commodities produced during the performance of the Company have irreplaceable uses and the
Company has the right to collect payment for the performance part accumulated so far during the whole
contract period.For the performance obligations performed within a certain period of time the Company recognizes the
income according to the performance progress within that period. If the performance progress cannot be
reasonably determined and the cost incurred of the Company is expected to be compensated the income shall
be recognized according to the amount of the cost incurred until the performance progress can be reasonably
determined.For obligations performed at a certain time the Company shall recognize the income at the time when the
customer obtains control of the relevant goods or services. When judging whether a customer has obtained
control of goods or services the Company will consider the following signs:
* The Company has the current right to receive payment for the goods or services that is the customer
has the current payment obligation for the goods or services.* The Company has transferred the legal ownership of the goods to the customer that is the customer has
the legal ownership of the goods.
87Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
* The Company has transferred the physical goods to the customer that is the customer has physically
taken possession of the goods.* The Company has transferred the main risks and rewards on the ownership of the goods to the customer
that is the customer has obtained the main risks and rewards on the ownership of the goods.* The customer has accepted the goods.* Other signs that the customer has obtained control of the goods.The Company has transferred goods or services to customers and has the right to receive consideration
(and the right depends on other factors except the passage of time) as contract assets and the contract assets are
depreciated on the basis of expected credit losses. The right of the Company to collect consideration from
customers unconditionally (only depending on the passage of time) is listed as receivables. The obligation of the
Company to transfer goods or services to customers for received or receivable consideration from customers
shall be regarded as a contractual liability.Contract assets and contract liabilities under the same contract are listed in net amount. If the net amount is
debit balance they are listed in "Contract Assets" or "Other Non-current Assets" according to their liquidity; If
the net amount is the credit balance it shall be listed in "Contract Liabilities" or "Other Non-current Liabilities"
according to its liquidity.
(2) Specific method
The specific method of revenue recognition of the Company is as follows:
Polarizer/Textile and garment sales contract:
Domestic sales: When the goods are delivered to the customer and the customer has accepted the goods
the customer obtains the control of the goods and the Company recognizes the revenue.Export: A. When the customer receives goods in China the revenue recognition is the same as "Revenue
Recognition for Domestic Sales"; B. When the delivery place of customer is outside the country the Company
mainly adopts FOB. When the goods are delivered from the warehouse and have been exported for customs
declaration the Company recognizes the revenue.Revenue from property/accommodation services:
In the process of property/accommodation service provision the Company recognizes revenue by stages.The adoption of different business models in similar businesses leads to differences in accounting policies for
income recognition
None
40.Government subsidy
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received.Government subsidies for monetary assets shall be measured according to the amount received or
receivable. Government subsidies for non-monetary assets are measured at fair value; If the fair value cannot be
obtained reliably it shall be measured according to the nominal amount RMB 1.Government subsidies related to assets refer to government subsidies obtained by the Company for
purchasing and building or forming long-term assets in other ways; In addition as a government subsidy related
to income.Where the government documents do not specify the object of the subsidy and the subsidy can form long-
term assets the part of the government subsidies corresponding to the value of the assets shall be regarded as
the government subsidy related to the assets and the rest shall be regarded as the government subsidies related
88Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
to the income; where it is difficult to be distinguished government subsidies as a whole are treated as income-
related government subsidies.Government subsidies related to assets offset the book value of related assets or are recognized as deferred
income and included in profits and losses by stages according to a reasonable and systematic method within the
service life of related assets. Government subsidies related to income which are used to compensate related
costs or losses that have occurred are included in current profits and losses or offset related costs; If used to
compensate related costs or losses in later periods they will be included in the deferred income and included in
the current profits and losses or offset related costs during the recognition period of related costs or losses.Government subsidies measured in nominal amount are directly included in current profits and losses. The
Company adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities are included in other income or offset related costs
according to the nature of economic business. Government subsidies irrelevant to routine activities shall be
included into the non-operating receipt and disbursement.When the recognized government subsidy needs to be returned if the book value of related assets is offset
during initial recognition the book value of assets will be adjusted; If there is a relevant deferred income
balance the book balance of the relevant deferred income will be offset and the excess will be included in the
current profits and losses; In other cases it is directly included in the current profits and losses.For the discount interest of preferential policy loans if the finance allocates the discount interest funds to
the lending bank the actually received loan amount is taken as the recorded value of the loan and the
borrowing costs are calculated according to the loan principal and preferential policy interest rate. If the finance
directly allocates the discount interest funds to the Company the discount interest will offset the borrowing
costs.
41.The Deferred Tax Assets / The deferred Tax Liabilities
Income tax includes current income tax and deferred income tax. Except for adjusted goodwill arising from
business combination or deferred income tax related to transactions or matters directly included in owner's
equity they are all included in current profits and losses as income tax expenses.According to the temporary difference between the book value of assets and liabilities and the tax basis on
the balance sheet date the Company adopts the balance sheet liability method to confirm deferred income tax.All taxable temporary differences are recognized as related deferred income tax liabilities unless the
taxable temporary differences are generated in the following transactions:
(1) Initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions
with the following characteristics: the transaction is not a business combination and the transaction does not
affect accounting profits or taxable income when it occurs;
(2) For taxable temporary differences related to investments of subsidiaries joint ventures and associated
enterprises the time for the temporary differences to be reversed can be controlled and the temporary
differences will probably not be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax deductions that can be carried forward to
later years the Company shall recognize the deferred income tax assets arising there from to the extent that it is
likely to obtain the future taxable income used to offset the deductible temporary differences deductible losses
and tax deductions unless the deductible temporary differences are generated in the following transactions:
(1) The transaction is not a business combination and it does not affect accounting profit or taxable
income when the transaction occurs;
(2) For deductible temporary differences related to investments of subsidiaries joint ventures and
89Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
associated enterprises corresponding deferred income tax assets are recognized if the following conditions are
met at the same time: temporary differences are likely to be reversed in the foreseeable future and taxable
income used to offset the deductible temporary differences is likely to be obtained in the future.On the balance sheet date the Company measures deferred income tax assets and deferred income tax
liabilities according to the applicable tax rate during the expected period of recovering the assets or paying off
the liabilities and reflects the income tax impact of the expected way of recovering the assets or paying off the
liabilities on the balance sheet date.On the balance sheet date the Company rechecks the book value of deferred income tax assets. If it is
unlikely that sufficient taxable income will be obtained in the future period to offset the benefits of deferred
income tax assets the book value of deferred income tax assets will be written down. When sufficient taxable
income is likely to be obtained the written-down amount shall be reversed.
42.Lease
（1）Accounting of operational leasing
(1) Identification of lease
On the contract start date the lessor-the Company evaluates whether the customer in the contract is entitled
to almost all the economic benefits arising from the use of the identified asset during the period of use and has
the right to direct the use of the identified asset during the period of use. Where a party in the contract transfers
the right to control the use of one or more identified assets within a certain period in exchange for consideration
the Company determines that the contract is a lease or contains a lease.
(2) The Company as the lessee
On the commencement date of the lease term the Company recognizes right-of-use assets and lease
liabilities for all leases except for simplified short-term leases and leases of low-value assets.For the accounting policies of right-of-use assets please refer to this section V. Significant accounting
policies and accounting estimates 29. Right-of-use assets.The lease liability is initially measured at the present value of the unpaid lease payments on the lease
commencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rate
implicit in the lease cannot be determined the incremental borrowing rate is used as the discount rate. Lease
payments include: fixed payments and in-substance fixed payments deducting the relevant amount of the lease
incentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exercise
price of a purchase option provided that the lessee is reasonably determine that the option will be exercised; the
amount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteed
residual value provided by the lessee. Subsequently the interest expense of the lease liability in each period of
the lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current profit and
loss when they are actually incurred
Short-term leases
Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of the
lease term except leases that include a purchase option.The lessor will include the lease payments for short-term leases in the cost of relevant assets or current
profits and losses on a straight-line basis during each period of the lease term.Lease of low value asset
90Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Low-value asset leases refer to leases with a value of less than 40000 yuan when a single leased asset is a
brand-new asset.For the lease of low-value assets the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.The lease payments for the value asset lease of the Company shall be included in the cost of the relevant
assets or the current profit and loss on a straight-line basis in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.Lease change
Where the lease changes and the following conditions are met at the same time the Company will make
account treatment for the lease change as a separate lease:* The lease change expands the scope of the lease
by adding the right to use one or more leased assets;* The increased consideration is equivalent to the amount
adjusted by the individual price of the expanded part of the lease scope according to the contract situation after
change.Where the lease change is not accounted for as a separate lease on the effective date of the lease change
the Company re-allocates the consideration of the contract after the change re-determines the lease term and
re-measures the lease liability according to the lease payment after the change and the present valuecalculated
bythe revised discount rate.Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term the
Company will reduce the book value of the right-of-use asset accordingly and include the relevant gains or
losses on partial or complete termination of the lease into the current profit and loss.If other lease changes result in re-measurement of lease liabilities the Company adjusts the book value of
the right-of-use asset accordingly.
(3) The Company as the lessor
When the Company acts as a lessor a lease that substantially transfers all risks and rewards related to asset
ownership is recognized as a financial lease and other leases other than financial leases are recognized as
operating leases.Financial lease
In the financial lease at the beginning of the lease term the Company takes the net investment in the lease
as the entry value of the finance lease receivables and the net investment in the lease is thesum ofthe
unguaranteed residual value and the present value of the lease receipts that have not been received on the start
date of the lease term after calculated according to the discounted interest rate implicit in the lease. The
Company as the lessor calculates and recognizes the interest income in each period of the lease period
according to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessor
that are not included in the net lease investment measurement are included in the current profit and loss when
actually incurred.The derecognition and impairment of financial lease receivables shall be accounted for in accordance with
the provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement of
Financial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.For rents under operating leases the Company recognizes the current profits and losses on a straight-line
basis in each period of the lease term. The initial direct expenses incurred in relation to operating leases shall be
capitalized and amortized on the same basis as rental income recognition during the lease term and then
included in the current profit and loss in installments. The variable lease payments obtained in relation to
91Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
operating leases but not included in the lease receipts are included in the current profit and loss when actually
incurred.Where the operating lease is changed the Company will treat it as a new lease from the effective date of the
change and the advance receipts or lease receivables related to the lease before the change are regarded as the
receipts of the new lease.
2. Accounting Treatment Method of Finance Lease
(1) Identification of lease
On the contract start date the lessor-the Company evaluates whether the customer in the contract is entitled
to almost all the economic benefits arising from the use of the identified asset during the period of use and has
the right to direct the use of the identified asset during the period of use. Where a party in the contract transfers
the right to control the use of one or more identified assets within a certain period in exchange for consideration
the Company determines that the contract is a lease or contains a lease.
(2) The Company as the lessee
On the commencement date of the lease term the Company recognizes right-of-use assets and lease
liabilities for all leases except for simplified short-term leases and leases of low-value assets.For the accounting policies of right-of-use assets please refer to this section V. Significant accounting
policies and accounting estimates 29. Right-of-use assets.The lease liability is initially measured at the present value of the unpaid lease payments on the lease
commencement date of the lease period calculated by the interest rate implicit in the lease. If the interest rate
implicit in the lease cannot be determined the incremental borrowing rate is used as the discount rate. Lease
payments include: fixed payments and in-substance fixed payments deducting the relevant amount of the lease
incentive if there is a lease incentive; variable lease payments that depend on an index or ratio; the exercise
price of a purchase option provided that the lessee is reasonably determine that the option will be exercised; the
amount payable to exercise the option to terminate the lease provided thatin the lease term it reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid based on guaranteed
residual value provided by the lessee. Subsequently the interest expense of the lease liability in each period of
the lease term is calculated at a fixed periodic interest rate and included in the current profit and loss. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current profit and
loss when they are actually incurred
Short-term leases
Short-term leases are leases with a lease term not exceeding 12 months from the commencement date of the
lease term except leases that include a purchase option.The lessor will include the lease payments for short-term leases in the cost of relevant assets or current
profits and losses on a straight-line basis during each period of the lease term.Lease of low value asset
Low-value asset leases refer to leases with a value of less than 40000 yuan when a single leased asset is a
brand-new asset.For the lease of low-value asset the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.The lease payments for the value asset lease of the Company shall be included in the cost of the relevant
assets or the current profit and loss on a straight-line basis in each period of the lease term.For the lease of low-value assets the Company chooses to adopt the above simplified treatment method
according to the specific circumstances of each lease.
92Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Lease change
Where the lease changes and the following conditions are met at the same time the Company will make
account treatment for the lease change as a separate lease: * The lease change expands the scope of the lease
by adding the right to use one or more leased assets; * The increased consideration is equivalent to the amount
adjusted by the individual price of the expanded part of the lease scope according to the contract situation after
change.Where the lease change is not accounted for as a separate lease on the effective date of the lease change
the Company re-allocates the consideration of the contract after the change re-determines the lease term and
re-measures the lease liability according to the lease payment after the change and the present value calculated
by the revised discount rate.Where the lease change leads to the narrowing of the lease scope or the shortening of the lease term the
Company will reduce the book value of the right-of-use asset accordingly and include the relevant gains or
losses on partial or complete termination of the lease into the current profit and loss.If other lease changes result in re-measurement of lease liabilities the Company adjusts the book value of
the right-of-use asset accordingly.
(3) The Company as the lessor
When the Company acts as a lessor a lease that substantially transfers all risks and rewards related to asset
ownership is recognized as a financial lease and other leases other than financial leases are recognized as
operating leases.In the financial lease at the beginning of the lease term the Company takes the net investment in the lease
as the entry value of the finance lease receivables and the net investment in the lease is thesum of the
unguaranteed residual value and the present value of the lease receipts that have not been received on the start
date of the lease term after calculated according to the discounted interest rate implicit in the lease. The
Company as the lessor calculates and recognizes the interest income in each period of the lease period
according to the fixed periodic interest rate. The variable lease payments obtained by the Company as a lessor
that are not included in the net lease investment measurement are included in the current profit and loss when
actually incurred.The derecognition and impairment of financial lease receivables shall be accounted for in accordance with
the provisions of No. 22Accounting Standards for Business Enterprises-Recognition and Measurement of
Financial Instruments and No. 23 Accounting Standards for Business Enterprises- Transfer of Financial Assets.Where the financial lease is changed and the following conditions are met at the same time the Company
will make account treatment for the lease change as a separate lease: * The lease change expands the scope of
the lease by adding the right to use one or more leased assets;* The increased consideration is equivalent to the
amount adjusted by the individual price of the expanded part of the lease scope according to the contract
situation after change..Where the change of the financial lease is not accounted for as a separate lease the Company shall treat the
changed lease according to the following circumstances: * where the lease is classified as an operating lease
when the change takes effect on the lease start date the Company shall account for the lease change as a new
lease from the effective date and the net investment in the lease before the effective date of the lease change is
used as the book value of the lease asset; * where the lease is classified as a financial lease when the change
93Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
takes effect on the lease start date the Company shall conduct accounting treatment in accordance with the
regulation of revising or renegotiating contracts by" No. 22Accounting Standards for Business Enterprises-
Recognition and Measurement of Financial Instruments".
43. Other important accounting policies and accounting estimates
(1)Change of main accounting policies
Accounting policy changes caused by implementation of new financial instrument standards
（2） Changes in accounting estimates
No significant changes in accounting estimates have occurred in the current period.
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable√ Not applicable
（2）Change of main accounting estimations
√ Applicable □Not applicable
The content and reason for change of accounting Approval
Estimations process Start applicable Remarks
Due to the frequent use of the Company's electronic and For details please refer to the
other equipment and rapid update in actual use resulting
Resolution of Announcement on Changes of
in their actual service life lower than the current
the ninth Accounting Estimates of
depreciation period the depreciation period of electronic Depreciation Period of Some
meeting of the January 12022
and other equipment is changed to make the depreciation Fixed Assets (No.2021-63)
eighth Board
period of assets closer to the service life of assets in disclosed by the Company on
of Director
order to meet the needs of the Company's business CNINF on January 1 2022.development and fixed asset management.
45.Other
None
VI. Taxation
1. Main categories and rates of taxes
Taxes Tax references Applicable tax rates
VAT The taxable turnover 13%6%5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%20%16.5%15%
Education surcharge Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
In case there exist any taxpayer paying corporate income tax at different tax rates disclose the information
Name of taxpayer Income tax rates
Shenzhen Textile (Holdings) Co. Ltd 25%
SAPO Photoelectric Co. Ltd. 15%
94Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Shenzhen Lisi Industrial Co. Ltd. 20%
Shenfang Property Management Co. Ltd. 20%
Shenzhen Huaqiang Hotel 20%
Shenzhen Beauty Century Garment Co. Ltd. 20%
Shenzhen Shenfang Sungang Property Management Co.Ltd. 20%
Shengtou（HK）Co. Ltd. 16.5%
Shenzhen Shengjinlian Technology Co. Ltd. 25%
2. Tax preference.In accordance with relevant provisions of the Notice of Ministry of Finance General Administration of Cu
stoms and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the Develop
ment of New-type Display Device Industry (Cai Guan Shui (2021) No. 19)The Company manufactured key
materials and parts for the upstream industry of new-type display devices including colorful light filter coating
and polarizer
sheet that comply with the planning for independent development of domestic industries may enjoy the preferen
tial policies of exemption from import tariff for the import of raw materials and consumables for the purpose of
self use and production that can not be produced domestically from January 1 2021 and December 31 2030. Th
e above preferential tax policies apply to the subsidiaries of the Company SAPO Photoelectric Co. Ltd.According to the relevant regulations of the Administrative Measures for the Accreditation of High-tech
Enterprises (GKFH No.32 [2016]) and the Guidelines for Accreditation Administration of High-tech
Enterprises (GKFH No.195 [2016]) the qualification of an accredited high-tech enterprise is valid for 3 years
from the issuing date of the certificate. After obtaining the qualification of high-tech enterprise the enterprise is
entitled to the preferential enterprise income tax at a rate of 15% from the year when the certificate of high-tech
enterprise is issued. Shenzhen SAPO Photoelectric Technology Co. Ltd. a subsidiary of the Company was
recognized as a national high-tech enterprise in 2019 with a certificate number GR201944205666 valid for 3
years and paid enterprise income tax at a rate of 15%.According to the Announcement of the Ministry of Finance and the State Taxation Administration on
Implementing the Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial
and Commercial Households (Announcement No.12 of the Ministry of Finance and the State Administration of
Taxation in 2021) and the Announcement of State Taxation Administration on Implementing the Relevant
Matters of Income Tax Preferential Policies in Support of Development of Small and Micro Profit Enterprises
and Individual Industrial and Commercial Households (Announcement No.8 of State Taxation Administration
in 2021) from January 1 2021 to December 31 2022 for the small low-profit enterprises if the annual taxable
income does not exceed RMB 1 million the taxable income shall be calculated at a rate of 12.5% and the
enterprise income tax is paid at a rate of 20%; if the annual taxable income exceeds RMB 1 million but less than
RMB 3 million the taxable income shall be calculated at a rate of 50% and the enterprise income tax will be
paid at a rate of 20%". The above preferential tax policies apply to the subsidiaries of the Company Shenzhen
Beauty Century 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.
3.Other
None
95Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 6238.09 792.64
Bank deposit 348654742.86 302472035.96
Other monetary funds 7940013.85 0.00
Total 356600994.80 302472828.60
Including : The total amount of deposit abroad 6315269.67 6009898.07
Total amount of money limited to use such as mortgage pledge or
7940013.850.00
freeze
Other note
The total amount of restricted funds at the end of the period is 7940013.85 yuan which is the security deposit of
the subsidiary.
2. Transactional financial assets
In RMB
Items Year-end balance Year-beginning balance
financial assets measured at their fair
values and with the variation included in 609244744.72 586540735.16
the current profits and losses
Including：
Structure deposit 350156027.40 0.00
Monetary fund 178828114.58 586540735.16
Bank wealth management product 80260602.74 0.00
Including：
Total 609244744.72 586540735.16
Other note
Note
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Year-end balance Year-beginning balance.Bank acceptance Bill 22329172.88 76931731.52
Commercial acceptance 14791860.30 73011148.76
Total 37121033.18 149942880.28
96Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Propor value
on(%) on(%) on(%) tion(%)
Of
which：
Accrual
of bad
debt 371949 73959.3 371210 150307 365055. 149942
provisio 100.00% 0.20% 100.00% 0.24%92.48 0 33.18 936.02 74 880.28
n by
portfolio
Includ
ing：
Commer
cial 147918 73959.3 147179 730111 365055. 726460
39.77%0.50%48.57%0.50%
acceptan 60.30 0 01.00 48.76 74 93.02
ce.Bank
224031224031772967772967
acceptan 60.23% 51.43% 0.00 0.00%
32.1832.1887.2687.26
ce Bill
37194973959.3371210150307365055.149942
Total 100.00% 0.20% 100.00% 0.24%
92.48033.18936.0274880.28
Accrual of bad debt provision by portfolio:
In RMB
Amount in year-end
Name
Book balance Bad debt provision Proportion(%)
Commercial acceptance 14791860.30 73959.30 0.50%
Total 14791860.30 73959.30
Description of determining the combination basis: it is divided into bank acceptance bills and commercial
acceptance bills according to the subject of bill acceptance.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening Reversed orbalance Accrual collected Write-off Other Closing balance
amount
Commercial
acceptance 365055.74 291096.44 73959.30
Total 365055.74 291096.44 73959.30
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
97Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（3）The current accounts receivable write-offs situation
□ Applicable √ Not applicable
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and not
expired yet on the date of balance sheet
In RMB
Items Amount derecognized at the end of the Amount not yet derecognized at the endperiod of the period
Bank acceptance bill 15495198.50 51434865.61
Total 15495198.50 51434865.61
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
None
（6） The actual write-off accounts receivable
None
Note of the write-off the accounts receivable:
None
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Categor Book balance Bad debt provision Book Book balance Bad debt provisiony BookAmount Proporti Amount Proporti value Amount Proporti Amount Proportion(%) on(%) on(%) on(%) value
Accrual
of bad
debt
provisio 133643 133643 132603 1326031.78% 100.00% 0.00 2.57% 100.00% 0.00
n by 81.94 81.94 07.34 07.34
single
item
Includin
g：
Accrual
of bad
debt 736823 329739 703849 502848 228498 479998
provisio 98.22% 4.48% 97.43% 4.54%980.57 97.24 983.33 549.97 41.40 708.57
n by
portfolio
Includin
g：
Total 750188 463383 703849 516108 361101 479998100.00% 6.18% 100.00% 7.00%
362.5179.18983.33857.3148.74708.57
98Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Accrual of bad debt provision by single item: 13364381.94
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Dongguan Yaxing Beyond the credit
Semiconductor Co. 2797016.81 2797016.81 100.00% period for a long time
Ltd. uncertain recovered.Dongguan Fair LCD Beyond the credit
1695543.72 1695543.72 100.00% period for a long time
Co. Ltd. uncertain recovered.Guangdong Ruili Beyond the credit
Baolai Technology Co. 1298965.36 1298965.36 100.00% period for a long time
Ltd. uncertain recovered.Huangshan Beyond the credit
Zhongxianwei Electric 902031.00 902031.00 100.00% period for a long time
Co. Ltd. uncertain recovered.Shenzhen Gulida Beyond the credit
Microelectronics Co. 522737.52 522737.52 100.00% period for a long time
Ltd. uncertain recovered.Dongguan Jiaxian Beyond the credit
486510.50 486510.50 100.00% period for a long time
Electric Co. Ltd. uncertain recovered.Shenzhen Gulida Beyond the credit
Microelectronics Co. 457982.42 457982.42 100.00% period for a long time
Ltd. uncertain recovered.Jilin Lianxin Optics Beyond the credit
443768.72 443768.72 100.00% period for a long time
Technology Co. Ltd. uncertain recovered.Beyond the credit
Other 4759825.89 4759825.89 100.00% period for a long time
uncertain recovered.Total 13364381.94 13364381.94
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 736823978.43 32973997.14 4.48%
1-2 years 2.14 0.10 4.67%
Total 736823980.57 32973997.24
Note：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 736823978.43
1-2 years 2.14
2-3 years 688258.26
Over 3 years 12676123.68
3-4 years 0.00
4-5 years 0.00
Over 5 years 12676123.68
99Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Total 750188362.51
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision: withdrawing bad debt by aging combination
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write- Other Closing balance
amount off
Accrual of bad debt
provision by portfolio: 22849841.40 10124155.84 32973997.24
Accrual of bad debt
provision by single item: 13260307.34 104074.60 13364381.94
Total 36110148.74 10228230.44 0.00 0.00 0.00 46338379.18
Of which the significant amount of the reversed or collected part during the reporting period :None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Balance in year-end Proportion(%) Bad debt provision
First 114723319.70 32.69% 5196966.39
Second 66342120.65 18.90% 3005298.07
Third 61440509.51 17.51% 2783255.08
Fourth 54597543.80 15.56% 2473268.73
Fifth 53847453.65 15.34% 2439289.65
Total 350950947.31 100.00%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
6.Receivable financing
In RMB
Items Closing balance Opening balance
Note receivable 51434865.61 21474101.07
Total 51434865.61 21474101.07
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
100Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Other note
Some subsidiaries of the Company discount and endorse some bank acceptance bills according to the
needs of their daily fund management therefore the bank acceptance bills of the subsidiaries are classified as
financial assets measured at fair value with changes included in other comprehensive income.There is no single bank acceptance bill with impairment provision of the Company. On June 30 2022 the
Company considered that there was no significant credit risk in the bank acceptance bills held by it and there
would be no significant loss due to bank default.
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 70367096.83 100.00% 15157623.27 98.38%
1-2 years 248996.26 1.62%
Total 70367096.83 15406619.53
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
On June 30 2022 there was no large prepayment with an accounting age of more than one year in the balance of
prepayment .
（2）The ending balance of Prepayments owed by the imputation of the top five parties
The top five ending balances of prepayments collected according to prepaid objects totaled RMB
36080705.39 accounting for 51.27 % of the total closing balances of prepayments
Other note：None
8.Other receivable
In RMB
Items Closing balance Opening balance
Interest receivable 85062.56
Other accounts receivable 7150812.66 140185750.40
Total 7235875.22 140185750.40
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Agreement deposit 85062.56 0.00
Total 85062.56
2) Significant overdue interest
None
101Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant overdue dividend
None
3）Bad debt provision
□ Applicable √ Not applicable
（3）Other account receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 2016693.94 144954822.31
Unit account 19554763.66 16402902.33
Export rebate 1086980.29 1698919.82
Reserve fund and staff loans 912140.57 293128.97
Other 1626865.99 1834489.23
Total 25197444.45 165184262.66
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1 2022 7795257.07 17203255.19 24998512.26
Balance as at January 1 2022in
current
Provision in the current period 1725.66 1725.66
Recovered or reversed in the
6953606.136953606.13
current period
Balance as at June 302022 841650.94 17204980.85 18046631.79
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
102Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022Within 1 year(Including 1 year） 283876.14
1-2 years 1580026.94
2-3 years 6530019.52
Over 3 years 16803521.85
3-4 years 2603910.57
4-5 years 6111697.83
Over 5 years 8087913.45
Total 25197444.45
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write- Closing balance
amount off
Other
Accrual of bad debt
provision by single item 17203255.19 1725.66 17204980.85
Accrual of bad debt
provision by portfolio 7795257.07 6953606.13 841650.94
Total 24998512.26 6951880.47 18046631.79
Where the current bad debts back or recover significant amounts:None
(4) Other account receivables actually cancel after write-off
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Name Nature Year-end balance Age Portion in total other Bad debt provisionreceivables(%) of year-end balance
First Unit account 11389044.60 Over 5 years 45.56% 11389044.60
Second Unit account Within 1 year2704118.27 10.82% 135205.91（Including 1 year）
Third Unit account 1800000.00 Over 5 years 7.20% 1800000.00
Fourth Unit account 1018295.37 2-3 years 4.07% 1018295.37
Fifth Unit account 980461.06 Over 5 years 3.92% 980461.06
Total 17891919.30 71.57% 15323006.94
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
103Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 409450402.32 26217791.21 383232611.11 349978870.87 26335509.94 323643360.93
Processing
products 14679510.26 0.00 14679510.26 10992072.59 0.00 10992072.59
Goods in transit 19183144.40 0.00 19183144.40 7910629.62 30573.89 7880055.73
Finished
product 106099803.84 34543448.90 71556354.94 118034342.61 36750396.02 81283946.59
Semi-finished 342800480.80 52630818.01 290169662.79 270743032.26 34298745.28 236444286.98
Commissioned
materials 2700898.03 117333.43 2583564.60 7838404.74 620680.53 7217724.21
Total 894914239.65 113509391.55 781404848.10 765497352.69 98035905.66 667461447.03
（2）Inventory falling price reserves and reserves for impairment of contract performance costs
In RMB
Increased in current period Decreased in current period
Reverse
Items Opening balance d or Closing balance
Accrual collecte Write-off Other
d
amount
Raw materials 26335509.94 117718.73 26217791.21
Processing
products 0.00 0.00
Finished
product 36750396.02 10516916.94 12723864.06 34543448.90
Semi-finished 34298745.28 32208394.99 13876322.26 52630818.01
Goods in transit 30573.89 30573.89 0.00
Commissioned
materials 620680.53 503347.10 117333.43
Total 98035905.66 42725311.93 27251826.04 113509391.55
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
10.Contract assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √Not applicable
Provision for impairment of contract assets in the current period
None
104Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
Returns receivable costs 26678712.88 28585749.81
After the deduction of input VAT 69000515.76 860153.70
Advance payment of income tax 13259.97 57448.91
Other
Total 95692488.61 29503352.42
Other note：None
14.Creditor's right investment
None
Loss provision changes in current period change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
None
Loss provision changes in current period change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
None
Loss provision changes in current period change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
105Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（3） The amount of the assets and liabilities formed by the transfer and the continues involvement of long-
term accounts receivable
Not applicable
17. Long-term equity investment
In RMB
Increase /decrease
Profits
and Closin
losses
on Cash
g
bonus WithdraOpenin balancInveste Additio Decreas investm Other Change or wal of Closing e of
es g nal e in ents compre s inbalance investm investm Recogn hensive other profits
impair balance impair
announ ment
Other
ment
ent ent ized income equity
under ced to
provisi provis
the issue
on ion
equity
method
I. Joint ventures
Shenzh
en
Guanhu
a
12821413129129527
Printing 1.00 0.00
225.5416.11142.65
&
Dyeing
Co.Ltd.Subtota 128214 13129 129527
1.000.00
l 225.54 16.11 142.65
2. Affiliated Company
Shenzh
en
Changli
anfa
29722404580337678
Printing
02.97.263.23
&
dyeing
Compa
ny
Yehui
（Jorda
0.00-954.76-954.76
n）Co.Ltd.Yehui
Internat -
1835876710.185364
ional 58964.
97.26783.71
Co. 33
Ltd.Subtota 48081 345615 75756. 522947
l 00.23 .93 02 2.18
Total 133022 1.00 0.00 16585 75756. 134756
106Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
325.7732.0402614.83
Other note：None
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Shenzhen Dailishi Underwear Co. Ltd. 23637000.00 23637000.00
Union Development Group Co. Ltd. 144109485.84 144109485.84
Shenzhen Xinfang Knitting Co. Ltd. 2227903.00 2227903.00
Shenzhen South Textile Co. Ltd. 16059440.88 16059440.88
Total 186033829.72 186033829.72
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for Reasons
Recog Amount ofother being measured
for other
nized at fair value and comprehe
divide Accumulating Accumulating comprehensiv whose changes nsiveName nd income losses e incometransferred to are included in
income
incom retained other
transferre
e d toearnings comprehensiveincome retainedearning
Shenzhen Dailishi
Underwear Co. Ltd. 21077143.74
Long-term
holding
Union Development Group 141509485.84 Long-termCo. Ltd. holding
Shenzhen Xinfang Knitting
1703903.00 Long-term
Co. Ltd. holding
Shenzhen South Textile Co.
14559440.88 Long-term
Ltd. holding
Jintian Industry（Group） 14831681.50 Long-term
Co. Ltd. holding
Other note：None
19.Other non-current financial assets
In RMB
Items Year-end balance Year-beginning balance
Financial assets measured at fair value with changes included
in current profits and losses 28500000.00 30650943.40
Total 28500000.00 30650943.40
Other note: None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House Building Land use Constructionright in process Total
107Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
I. Original price
1. Balance at period-beginning 263643874.93 263643874.93
2.Increase in the current period
(1) Purchase
（2）Inventory\Fixed
assets\ Transferred from construction in progress
(3)Increased of Enterprise Combination
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 263643874.93 263643874.93
II.Accumulated amortization
1.Opening balance 157426095.17 157426095.17
2.Increased amount of the period 3545302.69 3545302.69
(1) Withdrawal 3545302.69 3545302.69
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 160971397.86 160971397.86
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV. Book value
1.Book value at period -end 102672477.07 102672477.07
2.Book value at period-beginning 106217779.76 106217779.76
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants due to
Houses and Building 10108893.93
historical reasons
Other note: None
21. Fixed assets
In RMB
108Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Items Year-end balance Year-beginning balance
Fixed assets 2375066082.11 2424741252.86
Disposal of fixed assets 278.92
Total 2375066361.03 2424741252.86
(1) List of fixed assets
In RMB
Items Houses & Machinery Transportationbuildings equipment s Other equipment Total
I. Original price
1.Opening balance 2550667255.2804662188.53 15278991.67 50379111.90 3420987547.34
4
2.Increased amount of the
period 81134386.65 266663.47 764135.71 82165185.83
(1) Purchase 7755945.58 266663.47 633891.16 8656500.21
(2) Transferred from constructi
on in progress 73378441.07 130244.55 73508685.62
(3)Increased of Enterprise
Combination
3.Decreased amount of the
period 1481595.99 347858.54 1829454.53
（1）Disposal 1481595.99 347858.54 1829454.53
4. Balance at period-end 2630320045.9804662188.53 15545655.14 50795389.07 3501323278.64
0
II. Accumulated depreciation
1.Opening balance 182971386.88 776447487.54 4361783.39 26071314.08 989851971.89
2.Increased amount of the
period 13585521.55 111355637.89 909575.11 5799256.82 131649991.37
(1) Withdrawal 13585521.55 111355637.89 909575.11 5799256.82 131649991.37
3.Decrease in the reporting
period 1305145.13 333944.19 1639089.32
（1）Disposal 1305145.13 333944.19 1639089.32
4.Closing balance 196556908.43 886497980.30 5271358.50 31536626.71 1119862873.94
III. Impairment provision
1.Opening balance 6361553.37 32769.22 6394322.59
2.Increase in the reporting
period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 6361553.37 32769.22 6394322.59
IV. Book value
1.Book value of the period-end 1737460512.2608105280.10 10274296.64 19225993.14 2375066082.11
3
2.Book value of the period- 1767858214.3
begin 621690801.65 10917208.28 24275028.60 2424741252.863
109Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(2) Fixed assets temporarily idled
None
(3) Fixed assets rented by finance leases
None
(4) Fixed assets without certificate of title completed
In RMB
Items Book Value Reason
Unable to apply for warrants due to
Houses and Building 271196732.41
historical reasons
Other note: None
（5）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Liquidation of fixed assets 278.92
Total 278.92
Other note: None
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 23222687.28 71482031.08
Total 23222687.28 71482031.08
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision Book value Book balance Provision Book value
for for
devaluation devaluation
Installation of
machines and 23222687.28 23222687.28 71482031.08 71482031.08
equipment
Total 23222687.28 23222687.28 71482031.08 71482031.08
110Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（2）Changes of significant construction in progress
None
（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Total
1. Balance at year beginning
4. Year-end balance 13762176.74 13762176.74
2. Increase at this period 11575546.14 11575546.14
3.Decreased amount of the period
4. Balance at period-end 25337722.88 25337722.88
II. Accumulated depreciation
1.Opening balance 4540987.37 4540987.37
2.Increased amount of the period 4303599.85 4303599.85
(1) Withdrawal
3.Decrease in the reporting period
（1）Disposal
4.Closing balance 8844587.22 8844587.22
III. Impairment provision
1.Opening balance
2.Increase in the reporting period
（1）Withdrawal
3.Decrease in
the reporting period
111Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（1）Disposal
4. Closing balance
IV. Book value
1.Book value of the period-end 16493135.66 16493135.66
2.Book value of the period-begin 9221189.37 9221189.37
Other note：None
26. Intangible assets
(1) Information
In RMB
Non-
Items Land use right Patent right proprietary Software Total
technology
I. Original price
1. Balance at period-beginning 48258239.00 11825200.00 21696241.02 81779680.02
2.Increase in the current period
(1) Purchase 460596.04 460596.04
（2）Internal R & D
（3）Increased of Enterprise
Combination
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 48258239.00 11825200.00 22156837.06 82240276.06
II.Accumulated amortization
1. Balance at period-beginning 14382583.03 11825200.00 6936736.99 33144520.02
2. Increase in the current period
(1) Withdrawal 445782.66 2076587.06 2522369.72
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end 14828365.69 11825200.00 9013324.05 35666889.74
III. Impairment provision
1. Balance at period-beginning
2. Increase in the current period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4. Balance at period-end
4. Book value
1.Book value at period -end 33429873.31 0.00 0.00 13143513.01 46573386.32
2.Book value at period-
beginning 33875655.97 0.00 0.00 14759504.03 48635160.00
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
112Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Not applicable
27. R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investees or the events
Opening balance Increase Decrease Closing balance
formed goodwill
Name of the investees or the events
Opening balance The merger of dispos
formed goodwill enterprises ition
Closing balance
SAPO Photoelectric 9614758.55 9614758.55
Shenzhen Beauty Century Garment Co.
2167341.212167341.21
Ltd.Total 11782099.76 11782099.76
（2）Impairment of goodwill
In RMB
Name of the investees or the events formed
Opening balance Increase Decrease Closing balance
goodwill
Name of the investees or the events formed
Opening balance Provis disposion ition Closing balancegoodwill
SAPO Photoelectric 9614758.55 9614758.55
Shenzhen Beauty Century Garment Co. Ltd. 2167341.21 2167341.21
Total 11782099.76 11782099.76
Information about an asset group or asset group portfolio
None
Explain the goodwill impairment test process key parameters (such as forecast period growth rate at expected
future cash flow stable period growth rate profit margin discount rate forecast period etc.) and the
confirmation method of goodwill impairment loss
None
Impact of the goodwill impairment test
None
Other note
None
29. Long term amortize expenses
In RMB
113Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Amortized
Items Balance in year- Increase in this expenses Other loss Balance in year-begin period end
Decoration fee 332644.10 0.00 71039.99 261604.11
Renovation fee 3775267.08 212390.46 488643.55 3499013.99
Other 1279384.76 0.00 326828.08 952556.68
Total 5387295.94 212390.46 886511.62 4713174.78
Other note: None
30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets depreciation
reserves 5852540.16 1463135.04 5766782.71 1440192.90
Unattained internal
sales profits 1394515.52 348628.88 2324192.50 348628.88
Payroll payable 7412819.00 1853204.75 7679100.00 1919775.00
Total 14659874.68 3664968.67 15770075.21 3708596.78
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Items Deductible DeductibleDeferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in fair value of investments in
178849973.4644712493.37178849973.4644712493.37
other equity instruments
The difference between the initial
recognition cost and tax base of long-
62083693.3615520923.3462083693.3615520923.34
term equity investment of Guanhua
Company
Differ difference in rent receivable 6026475.40 1506618.85 5636976.78 1409244.20
Total 246960142.22 61740035.56 246570643.60 61642660.91
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between the End balance of Trade-off between the Opening balance of
Items deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities assets or liabilities after assets and liabilities at assets or liabilities afteroff-set period-begin off-set
Deferred income tax
assets 3664968.67 3708596.78
Deferred income tax
liabilities 61740035.56 61642660.91
(4)Details of income tax assets not recognized
In RMB
114Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Items Balance in year-end Balance in year-begin
Deductible temporary difference 149917447.24 151027647.77
Deductible loss 667032025.03 736209989.47
Total 816949472.27 887237637.24
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
202360048979.89129226944.33
2024148095898.11148095898.11
202583287153.6483287153.64
2026120820767.06120820767.06
202822594586.9722594586.97
2029100351965.47100351965.47
203077636524.6777636524.67
203154196149.2254196149.22
Total 667032025.03 736209989.47
Other note: None
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items for for
devaluation devaluatio
n
Certificate of
deposit for more 30000000.00 30000000.00 30030410.96 30030410.96
than 1 year
Investment fund of
Shenzhen Xieli
25760086.2725760086.2725760086.2725760086.27
Automobile Co.Ltd
Other 200685.00 200685.00
Advance payment
for 28769782.86 28769782.86
equipment fund
Total 55960771.27 55960771.27 84560280.09 84560280.09
Other note:Note
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Credit loans 10773019.10 0.00
Uncounted and outstanding acceptance 11288842.02 37575113.83
115Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
notes
Total 22061861.12 37575113.83
(2) Situation of Overdue Outstanding Short-Term Borrowing
The total amount of overdue short-term loans at the end of this period is in RMB 0.00 of which the important
overdue short-term loans are as follows: None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
Type Balance in year-end Balance in year-begin
Bank acceptance Bill 46425031.27 16682324.12
Total 46425031.27 16682324.12
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 21008716.36 280210281.65
1-2 years 387161708.17 1122451.76
2-3 years 0.00 496309.68
3-4 years 0.00 44629.53
4-5 years 0.00 983598.33
Over 5 years 411743.57 786571.28
Total 408582168.10 283643842.23
(2) Significant advance from customers aging over one year
None
37.Advance account
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 16367252.26 968394.67
1-2 years 197892.32
Over 3 years 639024.58 639024.58
116Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Total 17006276.84 1805311.57
(2) Significant advance from customers aging over one year
None
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 122759.15 68955.21
Total 122759.15 68955.21
Amount and reasons for the significant change in the book value during the reporting period
None
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase in this Payable in this Balance in year-period period end
I. Short-term compensation 59719860.24 121750520.77 127382898.25 54087482.76
II.Post-employment benefits -
defined contribution plans 7706967.36 7706967.36
Total 59719860.24 129457488.13 135089865.61 54087482.76
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this Decrease in this Balance in year-period period end
1.Wages bonuses allowances and
subsidies 57114308.02 108558742.96 114539999.73 51133051.25
2.Employee welfare 3882798.29 3882798.29 0.00
3. Social insurance premiums 2735562.94 2735562.94 0.00
Including：Medical insurance 1955275.84 1955275.84 0.00
Work injury insurance 119422.77 119422.77 0.00
Maternity insurance 201009.56 201009.56 0.00
Other 459854.77 459854.77 0.00
4. Public reserves for housing 3814761.51 3814761.51 0.00
5.Union funds and staff education fee 2605552.22 2618932.70 2279621.62 2944863.30
Other 0.00 139722.37 130154.16 9568.21
Total 59719860.24 121750520.77 127382898.25 54087482.76
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
1. Basic old-age
insurance premiums 0.00 6410611.47 6410611.47 0.00
2.Unemployment 0.00 149878.42 149878.42 0.00
117Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
insurance
3. Annuity payment 0.00 1146477.47 1146477.47 0.00
Total 7706967.36 7706967.36
Other note：None
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 320623.96 6334093.50
Enterprise Income tax 768379.76 1804277.95
Individual Income tax 260524.71 866274.38
City Construction tax 64543.97 43259.90
House property tax 1280294.26 102146.02
Land use tax 4529.70 0.00
Education surcharge 48255.87 31608.85
Stamp tax 12600.06 18966.49
Total 2759752.29 9200627.09
Other note：None
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Interest payable 0.00
Other payable 139364842.98 201317421.35
Total 139364842.98 201317421.35
（1）Interest payable
None
（2）Dividends payable
None
(3) Other accounts payable
(a) Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 30634930.38 91213156.89
Unit account 60004929.20 51681042.57
Deposit 17267441.75 43277481.38
Other 31457541.65 15145740.51
Total 139364842.98 201317421.35
(b) Other significant accounts payable with aging over one year
None
118Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Lease liabilities due within one year 9045873.71 5175393.52
Total 9045873.71 5175393.52
Other note：None
44.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
Did not terminate the confirmation bill
endorsement discount 40146023.59 27523903.58
Total 40146023.59 27523903.58
Other note：None
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
Items Balance in year-end Balance in year-begin
Mortgage-guaranteed loan 728782222.63 683016243.25
Total 728782222.63 683016243.25
Description of the long-term loan classification
None
Other note: None
46.Bond payable
（1）Bond payable
None
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
None
(3) Note to conditions and time of share transfer of convertible bonds
None
119Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（4）Other financial instruments that are classified as financial liabilities
None
47. Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
lease liabilities 17470690.57 9419249.23
Less：Lease liabilities due within 1 year -9045873.71 -5175393.52
Total 8424816.86 4243855.71
Other note
The accrued interest expense of lease liabilities from January to June 2022 is RMB 319246.14 which is included
in the financial expense-service expense.
48. Long-term payable
None
（1）Statement of long-term payroll payable
None
（2）Special payable
None
49. Long term payroll payable
（1）Statement of long-term payroll payable
None
（2）Change of defined benefit plans
None
50.Estimated liabilities
In RMB
Items Balance in year-end Balance in year-begin Reason
Repayment payable 29710962.81 30741055.00
Total 29710962.81 30741055.00
Other note：None
120Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
51.Deferred income
In RMB
Items Beginning of term Increased this term Decreased thisterm End of term Reason
Government
Subsidy 110461293.15 13586815.72 10382503.03 113665605.84
Total 110461293.15 13586815.72 10382503.03 113665605.84
Details of government subsidies：
In RMB
Amount
transferr Other Amount
Beginning of New subsidy ed to income
of cost Othe Asset-
Items in current non- recorded in deducte r related orterm period operatio the current d in the chan
End of term income-
nal period current ges related
income period
Receipt of the
project subsidy
from the Finance
433333.39 433333.39 Related to
Committee for assets
April and June
2012
Subsidy for new
materials of Line 499999.96 250000.02 249999.94 Related toassets
5
Subsidy for
imported
equipment and 11672.06 11672.06 Related toassets
technology (Line
4)
Subsidy for
imported
equipment and 140074.13 70037.10 70037.03 Related toassets
technology (Line
5)
National
Development and
Reform
Commission's
49999.94 25000.02 24999.92 Related to
supporting funds assets
for strategic
emerging industry
projects
Import subsidy
funds for
Shenzhen
Municipal
Finance
Committee to 14388.09 7194.06 7194.03 Related toassets
encourage the
introduction of
advanced
technology (in the
current month)
Supporting funds
162499.96 25000.02 137499.94 Related to
for polarizer assets
121Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
materials and
technical
engineering
laboratory
Municipal R&D
center (technical 975000.00 150000.00 825000.00 Related toassets
center (funding)
Finance
Committee's new
1374999.9
materials grant 1624999.96 250000.02 Related to
4 assets
(Engineering
Laboratory)
Special fund for
key technical
R&D project of 2374999.9
2624999.96 250000.02 Related to
optical 4 assets
compensation
film for polarizer
Local supporting
funds for the
second-phase 9000000.0
9750000.00 750000.00 Related to
project of TFT- 0 assets
LCD polarizer
(Line 6)
Pilot project of
agglomeration
development of 1000000.0 11999999.
12999999.96 Related to
strategic emerging 2 94 assets
industry region -
Line 6
Third batch of
supporting plans
in 2016 and
supporting plans
for
national/provincia 2999999.9
3249999.96 250000.02 Related to
l projects for 4 assets
special funds for
emerging
industries and
future
development
Purchase money
for production
1999999.924000000.
plant equipment 26000000.04 Related to
8 06 assets
and instruments of
Line 6
Receipt of special
support funds
from Pingshan
324999.96 25000.02 299999.94 Related to
New District assets
Development and
Finance Bureau
Receipt of the
polarized light 1500000.0 27250000.
28750000.00 Related to
industrialization 0 00 assets
project for super-
122Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
large TV from
Shenzhen
Municipal
Finance
Committee
Funding for R&D
of key
technologies of
1883333.3
polarizer for 1983333.33 100000.00 Related to
3 assets
ultrathin IPS
smart phone
terminals
R&D of key
technologies of
high-performance 6000000.0
6000000.00 Related to
polarizer for 0 assets
large-size display
panel)
Shenzhen Special
Fund Subsidy
Agreement for
Improving 147643.86 147643.86 Related toassets
Atmospheric
Environmental
Quality
Subsidies for
special technical
transformation
investment
projects for 159916.67 9500.22 150416.45 Related toassets
technical
transformation
multiplication in
2020
Special major
project award and
supplement
support plan for 10110833.
10662333.32 551500.04 Related to
technical 28 assets
transformation
multiplication in
2021
Funding for key
technology R&D
project of low-
color round- 2500000.0
2500000.00 Related to
shaped polarizer 0 assets
for Z 2020N028
fixed curvature
AMOLED
Industrial
investment project
support plan - 11170000. Related to
11170000.00
first-batch project 00 assets
funding plan in
2022
Enterprise award 500000.00 500000.00 Related to
123Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
of harmonious income
labor relations in
Pingshan District
in 2020
Cultivation and
support of high-
tech enterprises in
Shenzhen's 1000000.0 Related to
1000000.00
scientific and 0 income
technological
innovation in
2022
Fund subsidy for
"Ten" Policies of
anti-epidemic and 与 Related
71614.0071614.00
aid enterprises in to income
Pingshan District
in 2022
One-time subsidy
for training with Related to
657375.00657375.00
post retained in income
2022
Post stabilization Related to
174966.00174966.00
subsidy income
Subsidy for old
Related to
elevator 720241.51 55877.86 664363.65
assets
renovation
Post retaining Related to
12860.7212860.72
subsidy etc. income
Textile transfer Related to
142857.0971428.5871428.51
fund assets
Special fund for
atmospheric Related to
442000.0026000.00416000.00
environmental assets
quality
Subsidy for
technical Related to
91000.006500.0084500.00
transformation of assets
dyeing projects
Other note：None
52. . Other non-current liabilities
None
53.Stock capital
In RMB
Changed（+，-）Year-beginning Issuance Balance in year-
balance of new Bonus Capitalizatio Other Subtotal end
share shares n of publicreserve
Total of
506521849.00506521849.00
capital shares
124Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Other note：None
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments including preferred shares perpetual
bonds etc. at the end of the reporting period
None
(2)Movement of the outstanding other financial instruments including preferred shares perpetual bonds etc. at
the end of the reporting period
None
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the Decrease in the current Year-end balance
current period period
Share premium 1826482608.54 1826482608.54
Other capital reserves 135117216.09 135117216.09
Total 1961599824.63 1961599824.63
Other notes including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
None
56.Treasury stock
None
57. Other comprehensive income
In RMB
Amount of current period
Less： Less：
Amount
transferred Prior
into profit period
Year- Amount and loss in
included in
other After-tax After-tax
Items beginning the current Less： Year-endincurred attribute to attribute to
balance before period that
composite Income tax balancethe parent minority
income tax recognied
income
into other transfer to
expenses company shareholder
comprehen retained
sive income in
income in the current
prior period period
1. Other
comprehen 11864308 11864308
sive 4.23 4.23
income that
125Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
cannot be
reclassified
in the loss
and gain in
the future
Changes in
fair value
of
investment 11864308 11864308
s in other 4.23 4.23
equity
instruments
2.Other
comprehen
sive
income
reclassifiab 1039034.8 1114790.875756.02 75756.02
le to profit 2 4
or loss in
subsequent
periods
Translation
differences
of financial 1039034.8 1114790.8
statements 75756.02 75756.022 4
denominate
d
Total of
other
comprehen 11968211 1197578775756.02 75756.02
sive 9.05 5.07
income
Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of
arbitraged items for adjustment:None
58. Special reserves
None
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus
reserve 98245845.47 98245845.47
Total 98245845.47 98245845.47
Note to surplus reserve including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
year beginning 130746251.74 86912390.50
Retained earnings after adjustments at the 130746251.74 86912390.50
126Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
year end
Add: Net profit attributable to owners of the
Company for the period 42433525.10 61162384.25
Less: withdrawal of statutory surplus 3175360.75
reserve
Common stock dividend payable 25326092.45 15195655.47
Add: Other comprehensive income carried 1042493.21
forward to retained earnings
Retained profits at the period end 147853684.39 130746251.74
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the
affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control the affected beginning undistributed
profits are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1425009759.63 1240002222.92 1097424726.81 859513585.39
Other business 20127549.46 2985871.14 4111680.57 3611874.68
Total 1445137309.09 1242988094.06 1101536407.38 863125460.07
Income-related information:
In RMB
Type Division 1 Division 2 Division 3 Total
Types of goods 1369146600.89 53399773.66 22590934.54 1445137309.09
Including
Polarizer 1369146600.89 1369146600.89
Property lease
management and others 53399773.66 53399773.66
Textile 22590934.54 22590934.54
Area 1369146600.89 53399773.66 22590934.54 1445137309.09
Including
Domestic 1296964926.29 53399773.66 4622754.68 1354987454.63
Abroard 72181674.60 17968179.86 90149854.46
Market
Including：
Textile
Contract
Including：
127Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Time
Including：
Term
Including：
Sales Channel
Including：
Total
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB 0.00 of which RMB
0.00 is expected to be recognized as income in the year RMB 0.00 is expected to be recognized as income in
the year and RMB 0.00 is expected to be recognized as income in the year.Other note: None
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 193493.65 281149.75
Education surcharge 133269.00 200819.41
Property tax 2911689.84 2888631.84
Land use tax 97737.54 184237.54
vehicle and vessel usage tax 1440.00 360.00
Stamp tax 829848.83 717598.47
Other 3883.32 8247.78
Total 4171362.18 4281044.79
Other note: None
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 9765028.00 9298067.94
Transportation changes 0.00 0.00
Exhibition fee 0.00 0.00
Business expenses 734977.55 522657.33
Samples and product loss 697198.25 751108.62
Property insurance 2716981.13
Sell 5791774.85 5768718.15
Travel expenses 444372.70 485870.44
Other 922396.04 950371.21
Total 18355747.39 20493774.82
Other note：None
128Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 40666351.70 38236906.16
Depreciation of fixed assets 7296978.02 4879277.56
Water and electricity 1062777.63 3022844.03
Intermediary organ 2701374.70 1931057.09
Intangible assets amortization 2514696.45 832673.40
Travel expenses 131833.96 210173.80
Office expenses 362061.20 443729.99
Business entertainment 729775.83 588954.42
Repair charge 670088.51 604512.02
Property insurance 209327.75 128797.77
Low consumables amortization 69360.98 857011.20
Board fees 190498.78 109620.00
Rental fee 1650936.30 0.00
Other 3192127.05 3482103.32
Tax 61448188.86 55327660.76
Other note: None
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Wage 8566206.98 8134336.44
Material 23286446.67 18818987.18
Depreciation 1908863.88 1650506.69
Fuel & Power 473821.67 423847.84
Travel expenses 45732.13 96760.54
Other 589921.33 45654.70
Total 34870992.66 29170093.39
Other note: None
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 15882534.27 379800.97
Interest income -773863.34 -840978.40
Exchange loss -27366911.14 -12318481.73
Fees and other 3424366.77 3564625.68
Total -8833873.44 -9215033.48
Other note：None
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 10780654.48 8764569.01
129Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns
accounted for by equity method 1658532.04 -412713.12
Investment income from the disposal of
long-term equity investment 20779.93
Dividend income earned during
investment holdings in other equity 708000.00 1122007.80
instruments
Structured deposit interest 8967680.80 9422057.74
Other -291040.32
Total 11043172.52 10152132.35
Other note：None
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
In RMB
Source Amount of this period Amount of last period
Transaction financial assets 0.00 914599.37
Total 914599.37
Other note：None
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 6951880.47 -5217962.16
Loss of bad note receivable 291096.44 58202.39
Loss of bad accounts receivable -10228230.44 812160.93
Total -2985253.53 -4347598.84
Other note：None
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and Impairment of
contract performance costs -42073672.20 -52628070.13
Total -42073672.20 -52628070.13
Other note：None
73. Asset disposal income
In RMB
130Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Items Amount of current period Amount of previous period
Gains& losses on the disposal of fixed
assets -11114.72 -55.96
74. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and
losses
Return insurance settlement
1615000.001615000.00
income
No payment required 78644.95 17140459.60 78644.95
Other 74470.10 18938.83 74470.10
Payable without payment 0.00 3278053.95
Total 1768115.05 20437452.38 1768115.05
Government subsidies recorded into current profits and losses： None
75.Non-current expenses
In RMB
Items Amount of current period Amount of previous period The amount of non-operatinggains & lossed
Other 202204.91 0.00 202204.91
Non-current asset Disposition
10885.38344978.9210885.38
loss
Total 213090.29 344978.92 213090.29
Other note：None
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 16930.91 7936142.04
Deferred income tax expense 323966.90 -57226.00
Total 340897.81 7878916.04
(2)Reconciliation of account profit and income tax expenses
In RMB
Items Amount of current period
Total profits 70445608.69
Income tax expenses calculated at the applicable tax rate 17469185.37
Influence of different tax rates applied by some subsidiaries -5705058.69
Income not subject to tax -2348309.43
Non-deductible costs expenses and losses 6733685.35
Tax impact by the unrecognized deductible losses and deductible temporary
differences in previous years -11684949.37
Tax impact of unrecognized deductible losses and deductible temporary
differences 1106993.48
Tax impact of research and development fee plus deduction -5230648.90
Income tax expense 340897.81
Other note：None
131Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous periodInterest income and other（Notincluding financing product） 559472.02 665366.82
Letter of Credit Deposit 152041095.07 13963635.17
Government Subsidy 13883551.50 7242800.00
Current account 120535575.04 16893575.28
Insurance claim 0.00 3255114.00
Total 287019693.63 42020491.27
Note to other cash received in connection with operating activities: None
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Payment of credit deposit 11655819.11 122116897.49
Other 37548518.13 38830126.18
Total 49204337.24 160947023.67
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits financial products
principal and income 635000000.00 779428611.40
Total 635000000.00 779428611.40
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Purchase of financial management
650000001.00732374977.65
structured deposit and investment
Total 650000001.00 732374977.65
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
None
132Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Restricted stock of stock repurchase
incentive object 0.00 7820298.30
Total 7820298.30
Note to other Cash paid related with financing activities： None
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from operating activities
Net profit 70104710.88 113422540.25
Add: Impairment loss provision of assets 45058925.73 52628070.13
Depreciation of fixed assets oil and gas assets and consumable
biological assets 74763001.21 58051019.56
Depreciation of Use right assets
Amortization of intangible assets 460596.04 832673.40
Amortization of Long-term deferred expenses 674121.16 390173.02
Loss on disposal of fixed assets intangible assets and other long-
term deferred assets 11114.72 20779.93
Fixed assets scrap loss 427672.86
Loss on fair value changes -914599.37
Financial cost -8833873.44 -9215033.48
Loss on investment -11043172.52 -10131352.42
Decrease of deferred income tax assets 43628.11 -57226.00
Increased of deferred income tax liabilities 97374.65 -334656.31
Decrease of inventories -113943401.07 -95326175.24
Decease of operating receivables -74703894.32 -84942673.31
Increased of operating Payable 96749103.44 -77494749.27
Other
Net cash flows arising from operating activities 79438234.59 -52643536.25
II. Significant investment and financing activities that without cash
flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
III .Movement of cash and cash equivalents：
Ending balance of cash 348660980.95 252993764.22
Less: Beginning balance of cash equivalents 302408433.72 278337236.95
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
133Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Net increase of cash and cash equivalent 46252547.23 -25343472.73
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 348660980.95 302408433.72
Including：Cash at hand 6238.09 792.64
Demand bank deposit 348654742.86 302407641.08
III. Balance of cash and cash equivalents
348660980.95302408433.72
at the period end
Other note：None
80. Note of statement of changes in the owner's equity
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:None
81. The assets with the ownership or use right restricted
In RMB
Items Book value at the end of the reportingperiod Cause of restriction
Monetary fund 7940013.85 Deposit for L/C
Fixed assets 238616091.47 Mortgage
Intangible assets 33433699.75 Mortgage
Total 279989805.07
Other note：None
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Items Closing foreign currencybalance Exchange rate
Closing convert to RMB
balance
Monetary funds
Including：USD 3899216.67 6.7114 26169202.76
Euro
HKD 800248.29 0.8552 684372.34
Yen 22112084.00 0.0491 1085703.32
Account payable
Including：USD 5847606.34 6.7114 39245625.19
Euro
HKD 278280.00 0.8552 237985.06
Long-term borrowing
Including：USD
Euro
134Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
HKD
Other receivable
Including：USD 70526.62 6.7114 473332.36
Other payable
Including：USD 676686.00 6.7114 4541510.42
HKD 30450.09 0.8552 26040.92
Yen 3381984.00 0.0491 166055.41
Euro 22500.00 7.0084 157689.00
Account payable
Including：USD 6561323.06 6.7114 44035663.58
Yen 4040248216.00 0.0491 198376187.41
Other note：None
(2) Note to overseas operating entities including important overseas operating entities witch should be
disclosed about its principal business place function currency for bookkeeping and basis for the choice. In case
of any change in function currency the cause should be disclosed.□ Applicable √ Not applicable
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information: None
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount
Items Amount Project included incurrent profit
and loss
Other
A B seat old elevator renovation subsidy 50000.00 50000.00
income
Other
Post stabilization subsidy 77242.92 77242.92
income
Other
Protection supplies support 10000.00 10000.00
income
Other
Elevator renovation renewal subsidies 5877.86 5877.86
income
Other
Post retaining subsidy etc. 8000.00 8000.00
income
Other
Social security return 3692.52 3692.52
income
Other
Other 3579.33 3579.33
income
Other
Received individual income tax handling fee refund 57297.68 57297.68
income
Futian Government Futian District Investment Promotion and Enterprise Other
10000.0010000.00
Service Center Protective Equipment Support Government Subsidies income
Additional VAT reduction and exemption by the tax bureau implementing the
Other
six-tax and two-fee reduction and exemption policy for small and micro 7743.96 7743.96
income
enterprises.
135Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Social Security Bureau Unemployment Insurance Stabilizing Posts and Other
18625.0018625.00
Preventing Unemployment One-off Training Subsidies for Staying in Work income
Deferred
Subsidy for new materials of Line 5 5000000.00 250000.04
income
Deferred
Subsidy for imported equipment and technology (Line5) 1400741.72 70037.10
income
National Development and Reform Commission's supporting funds for Deferred
500000.0025000.02
strategic emerging industry projects income
Subsidies (current month) by Shenzhen Municipal Finance Committee Deferred
143881.007194.06
encouraging the introduction of advanced technology import income
Supporting Funds for Polarizer Materials and Technology Engineering Deferred
500000.0025000.02
Laboratory income
Deferred
Municipal R&D Center (Technology Center (Grant) 3000000.00 150000.00
income
Deferred
Finance Committee New Material Grant (Engineering Laboratory) 5000000.00 250000.02
income
Special fund for key technical R&D project of optical compensation film for Deferred
5000000.00250000.02
polarizer income
T Local supporting funds for the second-phase project of TFT-LCD polarizer Deferred
15000000.00750000.00
(Line 6) income
Pilot project of agglomeration development of strategic emerging industry Deferred
20000000.001000000.02
region - Line 6 income
Third batch of supporting plans in 2016 and supporting plans for
Deferred
national/provincial projects for special funds for emerging industries and 5000000.00 250000.02
income
future development
Deferred
Purchase money for production plant equipment and instruments of Line 6 40000000.00 1999999.98
income
Receipt of special support funds from Pingshan New District Development Deferred
500000.0025000.02
and Finance Bureau income
Receipt of the polarized light industrialization project for super-large TV Deferred
30000000.001500000.00
from Shenzhen Municipal Finance Committee income
Funding for R&D of key technologies of polarizer for ultrathin IPS smart Deferred
2000000.00100000.00
phone terminals income
Fund of Shenzhen Municipal Finance Committee (Z 2018N007
Deferred
R&D of key technologies of high-performance polarizer for large-size 6000000.00 0.00
income
display panel)
Subsidies for special technical transformation investment projects for Deferred
190000.009500.22
technical transformation multiplication in 2020 income
Special major project award and supplement support plan for technical Deferred
11030000.00551500.02
transformation multiplication in 2021 income
Funding for key technology R&D project of low-color round-shaped Deferred
2500000.000.00
polarizer for Z 2020N028 fixed curvature AMOLED income
Industrial investment project support plan - first-batch project funding plan in Deferred
11170000.000.00
2022 income
The project subsidies received from the Finance Committee in April and June Deferred
433333.39433333.39
2012 income
Deferred
Subsidies for purchase of imported equipment and technical (Line 4) 11672.06 11672.06
income
Shenzhen Municipal Atmospheric Environment Quality Improvement Deferred
147643.86147643.86
Special Fund Subsidy Agreement income
Deferred
Received the handling fee of tax withheld and paid by the tax bureau 100132.83 100132.83
income
Deferred
Received the Social Security Bureau’s Stable Job Subsidy 174966.00 174966.00
income
Received the first batch of one-off training subsidies for job retention in 2022 Deferred
657375.00657375.00
from the Social Security Bureau income
Received the "Ten" policy subsidy by Pingshan District's anti-epidemic 71614.00 Deferred 71614.00
136Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
warm-hearted aid in 2022 (the first batch) income
Received the 2020 Pingshan District Harmonious Labor Relations Enterprise Deferred
500000.00500000.00
Award Fund (Third class) income
Received the first grant of the second batch of 2022 High-tech Enterprise Deferred
1000000.001000000.00
Cultivation Funding of Shen TechnologyInnovation income
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
None
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
None
(2) Combined cost and goodwill
None
(2) Combined cost and goodwill
None
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
None
(6) Other note
None
137Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
None
(2) Combination cost
None
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
None
3. Counter purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities
of the listed companies whether constituted a business and its basis the determination of the combination costs
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.None
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries liquidation subsidiaries etc.) caused by
other reasons and relevant information:
None
6.Other
None
138Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Share-holding ratio Acqui
Subsidiary operatio Register
n ed place
Business nature
Directly Indirectl redy way
Shenzhen Lishi Industry Shenzhe Shenzhe Domestic trade Property 100.00 Establ
Development Co. Ltd n n Management % ish
Establ
100.00
Shenzhen Huaqiang Hotel Shenzhe Shenzhe Accommodation restaurants ishn n business center; %
Shenfang Property Management Shenzhe Shenzhe 100.00 Establ
Co. Ltd. n n Property Management % ish
Shenzhen Beauty Century Shenzhe Shenzhe Production of fully electronic 100.00 Establ
Garment Co. Ltd. n n jacquard knitting whole shape % ish
Establ
Shenzhen Shenfang Sungang Shenzhe Shenzhe 100.00
Property Management Co. Ltd. n n Property Management
ish
%
SAPO Photoelectric Shenzhe Shenzhe Polarizer production and sales Purch
n n 60.00% ase
Shengtou (Hongkong) Co.Ltd. Hongko Hongko 100.00 Establ
ng ng Production and sales of polarizer % ish
Establ
Shenzhen Shengjinlian Shenzhe Shenzhe 100.00 ish
Technology Co. Ltd. Property leasingn n %
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee and holding more than half voting
rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation the control basis is: None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Holding proportion Profit or loss Dividend declared Closing balance of
Name of non-controlling attributable to non- to non-controlling non-controlling
interest controlling interest interest interest
SAPO Photoelectric 40.00% 27671185.78 0.00 1174704542.96
Other note：None
139Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Subsid
Curren Non-
Curren Non- Curren Non-
iaries current Total t current
Total Non- Total
t assets assets liabiliti Liabili liabiliti
Curren Total t current
assets es t assets
current
assets assets liabiliti Liabili
liabiliti
es ties es ties es
SAPO 1947 2458 4406 59562 87934 1474 1627 2581 4209 51727 82706 1344
Photoe 41565 95890 37455 6615. 7315. 97393 39411 71614 11025 1215. 6348. 33756
lectric 0.28 3.15 3.43 60 98 1.58 0.47 8.26 8.73 13 51 3.64
In RMB
Current term Last term
Total Cash flow Total Cash flow
Subsidiarie
s Operating comprehen from Operating comprehen fromNet profit Net profit
revenue sive operating revenue sive operating
income activities income activities
SAPO -
1390584969177964.69177964.80837844.1026352279133750.79133750.
Photoelectr 49132316.
01.0444443489.622525
ic 09
Other note：None
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
None
Other note：None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
Not applicable
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding Ratio
Name of Main Places of Registration Nature of The accounting treatment of
(%)
Subsidiary Operation Place Business investment in associates
direct indirect
Shenzhen
Guanhua Shenzhen Shenzhen Property
Printing & leasing
50.16% Equity method
140Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Dyeing Co.Ltd
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the voting
right ratio: None
Basis for holding less than 20% of voting rights but with significant influence or holding 20% or more of
voting rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Current assets 40540555.98 37787147.72
Including： Cash and cash equivalent 224653907.84 227586396.23
Non-current assets 265194463.82 265373543.95
Total assets 15427466.62 18194214.40
Current liabilities 34108058.19 35190853.69
Non-current liabilities 49535524.81 53385068.09
Total liabilities 215658939.01 211988475.86
Minority equity
Attributable to shareholders of the parent
215658939.01211988475.86
company
Share of net assets calculated by stake 108174523.81 106333419.49
Adjustment items
-- Goodwill 21595462.44 21595462.44
-- Internal transactions did not achieve
0.000.00
profit
--Other 285343.61 285343.61
Book value of equity investment in joint
130055329.86128214225.54
ventures
The fair value of the equity investment of
a joint venture with a public quotation
Operating income 10946554.54 8614658.31
Financial expenses -135801.19 -53530.25
Income tax expenses -717712.93 1990580.05
Net profit 2617456.35 -525032.86
Net profit from terminated operations
Other comprehensive income
Total comprehensive income 2617456.35 -525032.86
Dividends received from joint ventures
0.000.00
for this year
Other note：None
141Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
None
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investment
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
Not applicable
X. Risks Related to Financial Instruments
The objective of the Company in risk management is to strike a proper balance between risks and benefits and
strive to reduce the adverse impact of financial risks on the Company's financial performance. Based on this risk
management objective the Company has formulated risk management policies to identify and analyze the risks
faced by the Company set appropriate risk acceptable levels and design corresponding internal control
procedures to monitor the risk level of the Company. The Company will regularly review these risk
management policies and related internal control systems to adapt to changes in market conditions or business
142Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
activities of the Company. The internal audit department of the Company also regularly or randomly checks
whether the implementation of the internal control system complies with the risk management policy
The main risks caused by the Company's financial instruments are credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and commodity price risk).The Board of Directors is responsible for planning and establishing the Company's risk management
framework formulating the Company's risk management policies and relevant guidelines and supervising the
implementation of risk management measures. The Company has formulated risk management policies to
identify and analyze the risks faced by the Company. These risk management policies clearly define specific
risks covering many aspects such as market risk credit risk and liquidity risk management. The Company
regularly evaluates changes in the market environment and its business activities to decide whether to update
the risk management policies and systems. The risk management of the Company is carried out by the Risk
Management Committee in accordance with the policies approved by the Board of Directors. The Risk
Management Committee identifies evaluates and avoids relevant risks through close cooperation with other
business departments of the Company. The internal audit department of the Company regularly reviews the risk
management control and procedures and reports the review results to the Audit Committee of the Company.The Company disperses the risks of financial instruments through appropriate diversified investment and
business portfolio and reduces the risks concentrated in a single industry a specific region or a certain
counterparty by formulating corresponding risk management policies.
(1) Credit risk
Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations resulting in
financial losses of the Company.The Company manages credit risk according to portfolio classification. Credit risks mainly arise from bank
deposits notes receivable accounts receivable and other receivables.The bank deposits of the Company are mainly deposited in state-owned banks and other large and
medium-sized listed banks and such bank deposits are not expected to have significant credit risks.For notes receivable accounts receivable other receivables and long-term receivables the Company sets
relevant policies to control credit risk exposure. The Company evaluates customers' credit qualifications based
on their financial status credit records and other factors such as current market conditions and sets
corresponding credit periods. The Company will regularly monitor customers' credit records. For customers
with bad credit records the Company will adopt written dunning shortening of credit period or cancellation of
credit period to ensure that the overall credit risk of the Company is within the controllable range.Debtors of accounts receivable of the Company are customers distributed in different industries and
regions. The Company continuously evaluates the financial status of accounts receivable and purchases credit
guarantee insurance when appropriate.The maximum credit risk exposure the company is subject to is the book amount of each financial asset in
the balance sheet. The Company has not provided any other guarantee that may expose the Company to credit
risk.
(2) Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligation to settle by
delivering cash or other financial assets.The member companies of the Company are responsible for their own cash management including short-
143Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
term investment of cash surplus and raising loans to meet the estimated cash demand (if the loan amount
exceeds certain preset authorization limits it needs to be approved by the Board of Directors of the Company).In addition the Company will also consider negotiating with suppliers to reduce part of the debt amount or
obtain funds in advance by selling long-aged accounts receivable so as to reduce the cash flow pressure of the
Company. The Company's policy is to regularly monitor the short-term and long-term liquidity demand and
whether it meets the requirements of the loan agreement so as to ensure that sufficient cash reserves and
securities that can be realized at any time are maintained and at the same time to obtain sufficient reserve funds
that major financial institutions promise to provide so as to meet the short-term and long-term liquidity demand.
(3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to market price changes including interest rate risk exchange rate risk and other
price risks.Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will
fluctuate due to changes in market interest rates. Interest rate risk can be caused by recognized interest-bearing
financial instruments and unrecognized financial instruments (such as certain loan commitments).The Company's interest rate risk mainly arises from long-term bank loans. Financial liabilities with
floating interest rate expose the Company to cash flow interest rate risk while financial liabilities with fixed
interest rate expose the Company to fair value interest rate risk.The Company pays close attention to the impact of interest rate changes on its interest rate risk. At present
the Company has not adopted interest rate hedging policy. However the management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate risk when necessary.For financial instruments held on the balance sheet date which expose the Company to fair value interest
rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of
remeasuring the financial instruments according to the new interest rate assuming that the interest rate changes
on the balance sheet date. For the floating interest rate non-derivative instruments held on the balance sheet date
which expose the Company to cash flow interest rate risk the impact of the above sensitivity analysis on net
profit and shareholders' equity is the impact of the above interest rate changes on the annual estimated interest
expense or income. Last year's analysis was based on the same assumptions and methods.Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments will
fluctuate due to the change of foreign exchange rate. Exchange rate risk can be derived from financial
instruments denominated in foreign currencies other than the functional currency.Exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial
position and cash flow of the Company. The ratio of foreign currency assets and liabilities held by the Company
to the total assets and liabilities is not significant. Therefore the Company believes that the exchange rate risk it
faces is not significant.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value Fir value Fir value
measurement items measurement items measurement items Total
144Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
at level 1 at level 2 at level 3
I. Consistent fair value measurement -- -- -- --
(1) Transactional Financial Asset 609244744.72 28500000.00 637744744.72
1. Financial assets measured at fair
value and whose changes are included 609244744.72 609244744.72
in the current profit and loss
2. Specify the financial assets
measured at fair value and whose
28500000.0028500000.00
changes are included in the current
profit and loss
（2）Equity instrument investment 28500000.00 28500000.00
（III) Other equity instrument 186033829.72 186033829.72investment（VI）Receivable financing 51434865.61 51434865.61
Total liabilities measured at fair value
on a non-ongoing basis 609244744.72 265968695.33 875213440.05
II Inconsistent fair value
measurement -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
Quotes of the same assets or liabilities in active markets (unadjusted). The fair value of the Fuao Stoke
held by the Company at the end of the period is measured based on the closing price of Shenzhen Stock
Exchange on June 30 2022.
3. Items measured based on the continuous or uncontinuous level 2nd fair value valuation technique as used
nature of important parameters and quantitative information
Use observable input values other than the market quotation of assets or liabilities in the Level I directly (i.e.price) or indirectly (i.e. derived from price).
4. Items measured based on the continuous or uncontinuous level 3rd fair value valuation technique as used
nature of important parameters and quantitative information
Assets or liabilities use any input value that is not based on observable market data (unobservable input
value).
1. Financial assets measured at fair value and whose changes are included in the profits and losses of the
current period are bank structured deposits held by the Company which are measured at fair value based on the
principal amount due to their short maturity;
2. Accounts receivable financing is a bank acceptance bill with a short face value and a face value close to
the fair value which is measured at the face value as the fair value;
3. Investment in other equity instruments is held by the Company Investment in non-tradable equity
instruments is mainly valued and measured by market method asset-based method and income method. Among
them: Shenzhen Jiafeng Textile Industry Co. Ltd. and Jintian Industry (Group) Co. Ltd. faced with a operating
145Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
environment and operating conditions and financial status so the Company uses zero yuan as a reasonable
estimate of fair value for measurement; Changxing Junying Equity Investment Partnership (Limited Partnership)
has no significant changes in its operating environment operating conditions and financial status so the
Company measures the investment cost as a reasonable estimate of fair value.
5. Continuous third-level fair value measurement items adjustment information between initial and final book
values and sensitivity analysis of un-observable parameters
Not applicable
6. Continuous fair value measurement items the conversion between different levels in the current period the
reasons for the conversion and the policy for determining the conversion time
Not applicable
7. Change of valuation technique incurred in the current period and cause of such change
Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicable
9.Other
None
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
The parent
The parent
company of the
Name Registered address Nature Registered capital company of theCompany's
Company’s vote
shareholding
ratio
ratio
18/F Investment Equity
Shenzhen
Investment Building Shennan
investment
Real-estate RMB 28009 million 46.21% 46.21%
Holdings Co.Ltd. Road Futian District Development
and Guarantee
Shenzhen
Note to the parent company:
The company is authorized and approved to be state-owned independent company by Shenzhen Government
and it Executes financial contributor function on state-owned enterprise within authorization scope.Therefore the Company’s ultimate controller is Shenzhen Investment Holdings Co. Ltd.
146Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Other note：None
2.Subsidiaries of the Company
Details refer to the Note IX-1 Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
None
Other note: None
4.Other Related parties information
Other related party Relationship to the Company
Suzhou Advantage Ford Investment Center (Limited
partnership) The controlling party of SAPO Shareholder
Shengto (HK) Co. Ltd. The Company Executives are Director of the company
Hengmei Photoelectric Co. Ltd. Sharing Company of Suzhou Advantage Ford InvestmentCenter (Limited partnership)
Shenzhen Xinfang Knitting Co. Ltd. Sharing Company
Shenzhen Dailishi Underwear Co. Ltd. Sharing Company
Other note: None
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
None
Related transactions on sale goods and receiving services
None
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Related guarantee
In RMB
Guaranteed party Amount Guarantee start date Guarantee Whether the guaranteeend date has been fulfilled
SAPO Photoelectric 436470600.00 September 82020 No
The Company is the secured party
Not applicable
147Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
Printing & Dyeing Co. 3806454.17 July 302020 July 302022 The annual lendinginterest rate is 0.30%
Ltd.Loaned
(6) Related party asset transfer and debt restructuring
None
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
3523165.002512499.00
personnel
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
None
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Hengmei Photoelectric Co. Ltd. 168423.60 170977.53
Other payable Shenzhen Xinfang Knitting Co. Ltd. 244789.85 244789.85
Other payable Shenzhen Changlianfa Printing & dyeing Co. Ltd. 2061699.95 2023699.95
Other payable Yehui International Co.Ltd. 1124656.60 1124656.60
Other payable Shengtou（Hongkong）Co. Ltd. 315000.00 315000.00
Other payable Shenzhen Guanhua Printing & dyeing Co. Ltd. 3768454.17 3806454.17
7. Related party commitment
None
8.Other
None
148Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
XIII. Share payment
1. Overall situation of share payment
□Applicable √Not applicable
2. Equity-settled share-based payment
□Applicable √Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of June 302022The company does not disclose the pension plan undisclosed matter should exist.
2. Contingency
(1) Significant contingency at balance sheet date
Shenzhen SAPO Photoelectric Technology Co. Ltd. (hereinafter referred to as "SAPO Photoelectric") a
holding subsidiary of the Company was sued by Hangzhou Jinhang Equity Investment Fund Partnership
(Limited Partnership) another shareholder of SAPO Photoelectric for dissolution in which the Company is the
third party. The court heard the case on July 15 2022 and as of July 31 2022 no judgment had been made. As
the final judgment of the court is uncertain its impact on the Company's current and future profits cannot be
estimated temporarily.Manager of Shenzhen Shenbao Textile Industry and Trade Co. Ltd. v. The Company Shenzhen
Yuanxingchang Industrial Co. Ltd. and Su Xingbin for Liquidation Liability Dispute involving an amount of
RMB 2567500. The court held the first instance hearing on May 27 2022 and June 30 2022 and has not yet
made a judgment. As the final judgment of the court is uncertain its impact on the Company's current and
future profits cannot be estimated temporarily.
(2) The Company have no significant contingency to disclose also should be stated
None
149Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3.Other
None
XV. Events after balance sheet date
1. Significant events had not adjusted
None
2. Profit distribution
In RMB
Profits or dividends to be distributed 0.00
Profits or dividends declared after deliberation and approval 0.00
Profit distribution scheme No
3. Sales return
None
4. Notes of other significant events
As of December 312022The company does not disclose the pension plan undisclosed matter should exist.XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
None
(2) Prospective application
None
2. Liabilities restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets exchange
None
4. Pension plan
Not applicable
150Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
5. Discontinuing operation
Not applicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure management
requirements and internal reporting system. Based on the operating divisions the Company confirms three
reporting divisions namely textiles polarizer trade and property leasing.Divisional reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each division when reporting to the management. These measurement basis are consistent
with the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
Items Polarizer Textile Property lease and Offset betweenother divisions Total
Operating income 1445137309.01369146600.89 55921761.91 22590934.54 -2521988.25
9
Including: revenue from 1445137309.0
foreign transaction 1369146600.89 53551733.84 22438974.37 9
Revenue from inter-
segment transactions 2370028.07 151960.18 -2521988.25 0.00
Including: revenue from 1445137309.0
main business 1369146600.89 55921761.91 22590934.54 -2521988.25 9
Operating cost 1242988094.01204852305.21 16133387.77 24467674.70 -2465273.62
6
Including: main 1242988094.0
business cost 1204852305.21 16133387.77 24467674.70 -2465273.62 6
Operating profit 67615441.44 5407324.74 -4416615.83 284433.59 68890583.93
Total assets 5690609337.04406374553.43 3244708029.98 50663794.27 -2011137040.65
2
Total indebtedness 1681925715.51474973931.58 218686189.25 36832679.61 -48567084.93
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be
disclosed explain the reason
None
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
None
8.Other
None
151Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Categor Book balance Bad debt provision Book Book balance Bad debt provisiony BookAmount Proporti Proporti Proporti Proportion(%) Amount on(%) value Amount on(%) Amount on(%) value
Includin
g：
Accrual
of bad
debt 114661 553832. 109123 835359 417679. 793591
provisio 100.00% 4.83% 100.00% 5.00%48.15 48 15.67 0.78 54 1.24
n by
portfolio
Includin
g：
Total 114661 553832. 109123 835359 417679. 793591100.00% 4.83% 100.00% 5.00%
48.154815.670.78541.24
Accrual of bad debt provision by portfolio:553832.48
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 11466148.15
Total 11466148.15
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening Reversed or Closingbalance Accrual collected Write-off Other balanc
amount
Accrual of bad debt
provision by 417679.54 136152.94 553832.48
portfolio:
Total 417679.54 136152.94 553832.48
Where the significant amount of the reserve for bad debt recovered or reversed: None
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Closing balance Proportion % Balance of Bad debt provision
152Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Shenfang Building and
Peripheral rent 11466148.15 100.00% 553832.48
Total 11466148.15 100.00%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 12952469.33 14383631.68
Total 12952469.33 14383631.68
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
None
3）Bad-debt provision
√Applicable □ Not applicable
In RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Expected credit Expected credit loss over Expected credit losses for Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1 2022 1387764.39 15111246.32 16499010.71
Balance as at January 1 2022in
current
Provision in the current period -30000.00 -30000.00
Balance as at June 302021 1357764.39 0.00 15111246.32 16469010.71
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
153Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant dividends receivable with age exceeding 1 year
None
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Deposit 10000.00 10000.00
Unit account 15269395.10 16379395.10
Internal current account 13561884.93 14475600.00
Spare funds and employee borrowing 55000.00 0.00
Other 25200.01 27647.29
Total 28921480.04 30892642.39
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit Expected credit loss over Expected credit losses for Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1 2022 1387764.39 0.00 15111246.32 16499010.71
Balance as at January 1 2022in
current
Current period reversal 30000.00 30000.00
Balance as at June 302021 1357764.39 0.00 15111246.32 16469010.71
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balanceWithin 1 year(Including 1 year） 55000.00
1-2 years 4986284.93
2-3 years 1018295.37
Over 3 years 22861899.74
3-4 years 3500000.00
4-5 years 19361899.74
Over 5 years 28921480.04
Total
154Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Accrual collected Write-
Closing balance
off Otheramount
Bad debts are withdrawn
according to the aging 1387764.39 30000.00 1357764.39
portfoli
Accrual of bad debt
15111246.3215111246.32
provision by single item
Total 16499010.71 30000.00 16469010.71
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
None
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion in total closing
Company Ending balance of
nature of payment closing balanc Aging balance of other
name bad debt provision
receivables
st Internal current
1 13561884.93 1-5 years 46.89% 1242680.00
account
nd Company More than 5
2 current account 11389044.60 39.38% 11389044.60years
rd Company More than 5
3 current account 1800000.00 6.22% 1800000.00years
th Company
4 current account 1018295.37 2-3 years 3.52% 1018295.37
th Company More than 5
5 current account 592420.00 years 2.05% 592420.00
合计28361644.9098.06%16042439.97
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
3. Long-term equity investment
In RMB
Items Closing balance Opening balance
155Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 16582629.3 1972630835.3 1956048206.0
1972630835.391956048206.0916582629.30
subsidiaries 0 9 9
Investments in
associates and 134756614.83 134756614.83 133022325.77 133022325.77
joint ventures
16582629.32105653161.12089070531.8
2107387450.222090804820.9216582629.30
Total 0 6 6
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Withdra Closing
Name Opening Add
Decre wn
balance Closing balance
balance of
invest ased impairm impairment
ment invest ent
Other
provision
ment provisio
n
SAPO Photoelectric 1910247781.9 1910247781.9 14415288.09
44
Shenzhen Lisi Industrial
Development Co. Ltd. 8073388.25 8073388.25
Shenzhen Beauty Centruty
Garment Co. Ltd. 14696874.34 14696874.34 2167341.21
Shenzhen Huaqiang Hotal 15489351.08 15489351.08
Shenfang Property Management
Co. Ltd. 1713186.55 1713186.55
Shenfang Sungang Property
Management Co. Ltd. 5827623.93 5827623.93
Total 1956048206.0 1956048206.0 16582629.30
99
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
Adjust Declara Withdra balance
Openin
Add Decreas Gain/lo ment of Other tion of wnName g Closing
of
impair
balance investm
ed ss of other
investm Investm compre equity
cash impair balance
dividen ment Other mentent ent ent hensive changes ds or provisi provisi
income profit on on
I. Joint ventures
Shenzh
en
Guanhu
a
Printing 128214 13129 1295271.00 0.00
&225.5416.11142.65
Dyeing
Co.Ltd.Subtota 128214 13129 129527
l 1.00 0.00 0.00 0.00 0.00 0.00 0.00225.54 16.11 142.65
II. Associated enterprises
Shenzh
en 29722 404580 33767
156Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Changli 02.97 .26 83.23
anfa
Printing
and
dyeing
Compa
ny
Jordan
Garnent 0.00 -954.76 -954.76
Factory
Yehui
Internat -
ional 18358 76710. 1853638805.Co. 97.26 78 43.7101
Ltd.Subtota 48081 365775 75756. 52294
l 0.00 0.00 0.00 0.00 0.00 0.00 0.0000.23 .25 02 72.18
Total 133022 16585 75756. 134756
325.7732.0402614.83
（3）Other note
None
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main
Business 19836395.33 3883135.15 36457754.34 3657570.58
Other Business income 1320274.42 1320274.42 1688908.01 1688908.01
Total 21156669.75 5203409.57 38146662.35 5346478.59
Income-related information:
In RMB
Type Division 1 Division 2 Total
Types of goods 19836395.33 1320274.42 21156669.75
Including
Property lease
management and others 19836395.33 19836395.33
Sell electric charge 1320274.42 1320274.42
Area 21156669.75 21156669.75
Including：
Shenzhen 21156669.75 21156669.75
Market
Including：
Contract
Including：
Time
Including：
Term
157Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Including：
Sale channel
Including：
Total
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan. Among them RMB 0.00 is expected to be recognized as
revenue in 0 year RMB 0.00 is expected to be recognized as revenue in 0 year and RMB 0.00 is expected to be
recognized as revenue in 0 year.Other note：Note
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment returns accounted
for by equity method 1658532.04 -412713.12
Investment income from the disposal of long-
term equity investment 20779.93
Investment income of trading financial assets
during the holding period 8967680.80 8410570.66
Dividend income earned during investment
holdings in other equity instruments 708000.00 1122007.80
Total 11334212.84 9140645.27
6.Other
None
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -11114.72
Other benefits of
Govemment subsidy recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s government subsidies that10780654.48
policies) are confirmed related to
the main business.Other non-business income and expenditures other than the above It is mainly due to the1555024.76
compensation for losses.Less :Influenced amount of income tax 113018.21
Influenced amount of minor shareholders’ equity (after tax) 4748996.68
Total 7462549.63 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
158Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Report 2022
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition
in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public-Extraordinary Gains and Losses or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.□ Applicable √Not applicable
2. Return on net asset and earnings per share
Earnings per shareProfit of report period Weighted averagereturns equity(%) Basic earnings per Diluted earnings pershare(RMB/share） share(RMB/share)
Net profit attributable to the Common
stock shareholders of Company. 1.50% 0.0838 0.0838
Net profit attributable to the Common
stock shareholders of Company after 1.24% 0.0691 0.0691
deducting of non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.□ Applicable□√ Not applicable
(3) Explanation of the reasons for the differences in accounting data under domestic and foreign accounting stan
dards. If the data that has been audited by an overseas audit institution is adjusted for differences the name of th
e overseas institution should be indicated
None
4.Other
None
The Board of Directors of Shenzhen Textile (Holdings) Co. Ltd.August 25 2022
159
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