Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Stock code: 000045 Stock Abbreviation: Shen Textile A Shen Textile B Announcement No.:2022-14

Shenzhen Textile (Group) Co. LTD

The First Quarter 2022 Report

The members of the Board and the Company acknowledge being responsible for the truthfulness

accuracy and completeness of the announcement. Not any false record misleading statement or significant

omission carried in this announcement.Important content reminder:

1.The Board of Directors The Supervisory Committee the supervisors and the directors of the Company

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.

2. Principal of the Company Person in Charge of Accounting Works and Person in Charge of Accounting Organ

(Accounting Officer) hereby confirm that the Financial Report of the First Quarterly Report is authentic accurate

and complete.

3. Whether the First Quarterly Report has been audited or not

□Yes √No

4. This Report has been prepared in both Chinese and English in case any discrepancy the Chinese version shall

prevail.I. Main financial data

(I) Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes √No

Increase/decrease from

This period Same period of

year-begin to period-end

last year compared with the sameperiod of the previous

year

Operating income (RMB) 670551882.04 552950209.39 21.27%

Net profit attributable to the shareholders of the listed

company Yuan 17625745.18 42776335.85 -58.80%（ ）

Net profit after deducting of non-recurring gain/loss

attributable to the shareholders of listed company Yuan 15102181.63 39905925.26 -62.16%（ ）

Cash flow generated by business operation net（Yuan） -65966923.49 -75288004.27 12.38%

Basic earning per share(Yuan/Share) 0.0348 0.0842 -58.67%

Diluted gains per share(Yuan/Share) 0.0348 0.0842 -58.67%

Weighted average return on equity（%） 0.62% 1.53% -0.91%

Changes of this

End of this period End of last period period-end over same

period-end of last year(%)

Gross assets（Yuan） 5614397580.92 5496647107.83 2.14%

Net assets attributable to the shareholders of the listed

company Yuan 2834412300.14 2816795889.89 0.63%（ ）

1Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022（II）Items and amount of non-current gains and losses

√ Applicable □ Not applicable

Unit: yuan

project Amount of thisreporting period explain

Non-current asset disposal gain/loss(including the write-off part for which

assets impairment provision is made) -12114.72

Governmental Subsidy accounted as current gain/loss except for those Other benefits of government

subsidies at with amount or quantity fixed by the national government and 4300287.54 subsidies that are confirmed

closely related to the Company’s business operation. related to the main business

Net amount of non-operating income and expense except the aforesaid

items -93647.44

Less :Influenced amount of income tax 11413.84

Influenced amount of minor shareholders’ equity (after tax) 1659547.99

Total 2523563.55 --

Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:

□ Applicable √ Not applicable

The Company does not have other gain/loss items that qualified the definition of non-recurring profit

(gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&AAnnouncement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss

□ Applicable √ Not applicableThe Company does not have the non-recurring gain/loss listed in the “Q &AAnnouncement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss”defined as

recurring gain/loss

(III) Particulars about changes in items of main accounting data and financial index and explanations of

reasons

√ Applicable □Not applicable

The reporting period attributable to shareholders of the same period last year the main reason: one is the

large TV polarized light industrialization project (line 7) line 7 has not been put into production in the second half

of 2021 high fixed assets depreciation and amortization resulting in higher product unit manufacturing cost and

the line 7 after the consolidation project loan interest of 7.6999 million yuan in the same period last

year.Excluding the incomparable factors such as the climbing of Line 7 and the liquidation income of subsidiaries

despite the adverse factors such as the declining market and the rising raw material prices in the second half of last

year the company has maintained a steady operating performance in this reporting period compared with the same

period of last year by further optimizing the product and customer structure and improving the lean management

level compared with the same period of last year.At present the yield and loss rate and other technical indicators of Line 7 have improved month by month

the production capacity has increased and the company's operating performance is improving month by

month.The main products of Line 7 have been completed through customer verification the order volume has

been gradually increased and the unit manufacturing cost of the products has been gradually reduced. With the

smooth climbing progress of Line 7 the subsequent products will have a positive impact on the company's

business performance.Ending Operaing

Items balance balance(RMB Changes ratio Reasons of changes

(RMB 10000) 10000)

It is mainly caused by the purchase of money funds

Monetary funds 12186.80 30247.28 -59.71% investment in Line 7 and Guangzhou RTP projects during the

reporting period.

2Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Notes receivable 2983.82 14994.29 -80.10% It is mainly due to the maturity and acceptance of notesreceivable during the reporting period.Account receivable 63186.38 47999.87 31.64% Mainly due to the increase of polarizer business sales revenueduring the reporting period.Financing 6098.40 2147.41 183.99% Mainly due to the increase of polarizer business sales revenuereceivable during the reporting period.Prepayments 6709.56 1540.66 335.50% Mainly due to the increase of prepaid materials during thereporting period.Other current

assets 8525.52 2950.34 188.97% This is mainly due to the increase in the input tax expected.Construction in

process 1709.75 7148.20 -76.08%

Mainly due to the reporting period Guangzhou RTP project

under construction to solid.Amount at the Amount at theItems period RMB same period of（ last year(RMB Changes ratio Reasons of changes10000) 10000)Operating It is mainly caused by the increase of polarizer business sales

income 67055.19 55295.02 21.27% after the mass production of Line 7 during the reportingperiod.It is mainly due to the year-on-year increase of operating

Operating revenue and the increase of simultaneous operating costs.costs 57967.15 42781.74 35.50% However due to the low sales gross profit margin of new line7 products during the reporting period the growth of

operating costs exceeded the growth of operating revenue.Credit impairment It is mainly caused by the increase in accounts receivable and

loss -416.89 3.75 -11219.63% the corresponding increase in bad debt provision during thereporting period.Due to the main fact that Line 7 is still in the climbing period

Operating the high manufacturing cost of the product unit the loan

profit 2499.21 6882.35 -63.69% interest of Line 7 is recorded in the reporting period; theincome from the liquidation and cancellation of the subsidiary

in the same period of last year.Due to the main fact that Line 7 is still in the climbing period

the high manufacturing cost of the product unit the loan

Total profit 2489.84 6882.00 -63.82% interest of Line 7 is recorded in the reporting period; the

income from the liquidation and cancellation of the subsidiary

in the same period of last year.Income tax 191.99 672.05 -71.43% Mainly due to the reduction of enterprise income tax expensesexpenses during the reporting period.Due to the main fact that Line 7 is still in the climbing period

the high manufacturing cost of the product unit the loan

Net profit 2297.86 6209.95 -63.00% interest of Line 7 is recorded in the reporting period; the

income from the liquidation and cancellation of the subsidiary

in the same period of last year.Cash flow

generated by 2035.56 7186.57 71.68% Mainly due to the reduction of loans to Line 7 projects in this

financing reporting period.II. Shareholders Information

(I) Total number of common shareholders and preference shareholders with voting rights recovered and

top ten common shareholders

Unit: stock

Total number of common shareholders at the Total preference shareholders with the voting

period-end 24671 power recovered at the end of the reporting 0period(if any)

Shares held by the top 10 shareholders

Shareholder name Properties of Share

Pledging or freezing

shareholder Quantityproporti Amount of Status Quantity

3Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

on % tradable shares of theshares

with Conditional

held

Shenzhen Investment Holdings State-owned

Co. Ltd. legal person 46.21% 234069436

Shenzhen Shenchao Technology State-owned

Investment Co. Ltd. legal person 3.18% 16129032

Sun Huiming Domesticnatural person 1.19% 6008653

Deng Yan Domesticnatural person 1.11% 5604400

Chen Danzhen Domesticnatural person 1.09% 5543800

Liu Shenpei Domesticnatural person 0.95% 4801288

Su Weipeng Domesticnatural person 0.60% 3016010 pledge 2800000

Mao Yuxia Domesticnatural person 0.55% 2792400

Qi Jianhong Domesticnatural person 0.44% 2218800

China Construction Bank

Company Limited-Cinda

Australia Bank New Energy Others 0.43% 2174610

Industry Equity Securities

Investment Fund

Shareholding of top 10 shareholders of unrestricted shares

Quantity of unrestricted Share type

Name of the shareholder shares held at the end of the

reporting period Share type Quantity

Shenzhen Investment Holding Co. Ltd 234069436 RMB common stock 234069436

Shenzhen Shenchao Technology Investment Co.LTD 16129032 RMB common stock 16129032

Sun Huiming 6008653 Domestic listedforeign shares 6008653

Deng Yan 5604400 RMB common stock 5604400

Chen Danzhen 5543800 RMB common stock 5543800

Liu Shenpei 4801288 RMB common stock 4801288

Su Weipeng 3016010 RMB common stock 3016010

Mao Yuxia 2792400 RMB common stock 2792400

Qi Jianhong 2218800 RMB common stock 2218800

China Construction Bank Company Limited-Cinda

Australia Bank New Energy Industry Equity 2174610 RMB common stock 2174610

Securities Investment Fund

Among the top 10 common shareholders Shenzhen Investment Holding

s Co. Ltd. and Shenzhen Shenchao Technology Investment Co. Ltd. do

not constitute a concerted party relationship. In addition the company d

Description of the above shareholder association or oes not know whether there is an associated relationship among the top

concerted action 10 ordinary shareholders and between the top 10 ordinary shareholders

and the top 10 shareholders or whether they are persons taking concerte

d action defined in Regulations on Disclosure of Information about Shar

eholding of Shareholders of Listed Companies.

4Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

(II) Total shareholders with preferred stock held and shares held by top ten shareholders with

preferred stock held

□ Applicable √ Not applicable

III. Other significant events

√ Applicable □ Not applicable

(I) Progress of polarizer industrialization project for ultra-large TV (Line 7)

During the reporting period technical indicators such as yield and loss rate of Line 7 improved month by month

production capacity increased and the company's operating performance improved month by month.The main

products of Line 7 have been completed through customer verification the order volume has been gradually

increased and the unit manufacturing cost of the products has been gradually reduced. With the smooth climbing

progress of Line 7 the subsequent products will have a positive impact on the company's business performance.(II) About the investment and construction of RTS after the production line

In 2021 the company increased investment in one RTS production line the total project investment does not

exceed 30 million yuan; By March 312022 RMB 238.828 actually paid 17628500 yuan; By 31st March 2022

the company overcame the adverse impact of the epidemic and accelerated the construction of the RTS production

line which is expected to be completed in the second quarter of 2022.(III) Progress in subsidiaries participating in the establishment of industrial funds

On November 162017 the company subsidiary shengbo photoelectric and fund manager huai ji investment

general partner jin investment and other limited partners signed the changxing jun ying equity investment

partnership (limited partnership) partnership agreement jointly launched industrial fund focus on related to the

company's main business fund scale 50 million yuan sheng bo photoelectric as one of the limited partners of

industrial fund subscribed 28.5 million yuan see giant tide information network (http: / / www.cninfo.com."cn.)

Company Announcement No.2017-55".On February 102018 Changxing Junying has completed the industrial and commercial registration and has

completed the private investment fund filing on February 82018 please refer to Juchao Information Network

(http: / / www.cninfo.com.Company Announcement cn) 2018-05.As of March 312022 Changxing Junying has accumulated invested in 3 projects with a total investment

amount of 42 million yuan.No Name Investment Fund contribution（RMB 10000）

1 Shenzhen Kaichuang Shijia Technology Co. Ltd. Optical Film 1400

2 Shenzhen Shenfuyu Electronic Technology Co. Ltd. Optical Film 1300

3 Shenzhen Hengbaoshun Technology Development Co. Ltd. Optical Film 1500

(IV) The disposal of assets of the joint venture company Xieli Automobile Co. Ltd.Shenzhen Xili Automobile Co. LTD. (hereinafter referred to as "Shenzhen Xili") is a Sino-foreign joint venture

invested by the company and Hong Kong Xili Maintenance Company in 1981 with a registered capital of 3.12

million yuan and the company holds 50% of the equity.The company operated until 2008 and its business license

was revoked in 2014 with the main assets were property.In March 2020 Shenzhen Xili Industry and Commerce

has been cancelled but there are three properties under its name how to dispose of both shareholders need to solve

after further negotiation.On July 262021 the Company filed to the People's Court of Yantian District Shenzhen City Guangdong

Province the cancellation of Shenzhen Market Supervision Administration of Shenzhen Xili Automobile

Enterprise Co. Ltd. on March 92020; On November 212021 the cancellation of Shenzhen Xili Automobile

Enterprise Co. Ltd.; on December 3 and December 62021 Hong Kong Xili and Shenzhen Market Supervision

Administration submitted an appeal to the Shenzhen Intermediate People's Court respectively.On April 18 2022

5Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

the company received the notice of the second instance hearing sent by Shenzhen intermediate people's court. The

case was heard on April 27 2022. As of the disclosure date of this report the company has not received the

judgment result of the second instance.IV. Quarterly financial statements

(1) Financial statements

1. Consolidated balance sheet

Prepared by: Shenzhen Textile (Group) Co. LTD

In RMB

Items March 31 2022 March 31 2021

Current asset：

Monetary fund 121867997.52 302472828.60

Settlement provision

Outgoing call loan

Transactional financial assets 710992246.79 586540735.16

Derivative financial assets

Notes receivable 29838237.17 149942880.28

Account receivable 631863822.83 479998708.57

Financing receivable 60983972.96 21474101.07

Prepayments 67095605.10 15406619.53

Insurance receivable

Reinsurance receivable

Provisions of Reinsurance contracts receivable

Other account receivable 106238805.90 140185750.40

Including：Interest receivable 91547.13

Dividend receivable

Repurchasing of financial assets

Inventories 767239406.08 667461447.03

Contract assets

Assets held for sales

Non-current asset due within 1 year

Other current asset 85255221.34 29503352.42

Total of current assets 2581375315.69 2392986423.06

Non-current assets：

Loans and payment on other’s behalf disbursed

Creditor's Investment

Other Creditor's Investment

Long-term receivable

Long term share equity investment 132915289.85 133022325.77

Other equity instruments investment 186033829.72 186033829.72

Other non-current financial assets 30650943.40 30650943.40

Property investment 104445128.42 106217779.76

Fixed assets 2428601151.17 2424741252.86

Construction in progress 17097540.42 71482031.08

6Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Production physical assets

Oil & gas assets

Use right assets 9221189.37 9221189.37

Intangible assets 47387543.01 48635160.00

Development expenses

Goodwill

Long-germ expenses to be amortized 5170341.08 5387295.94

Deferred income tax asset 3708379.99 3708596.78

Other non-current asset 67790928.80 84560280.09

Total of non-current assets 3033022265.23 3103660684.77

Total of assets 5614397580.92 5496647107.83

Current liabilities

Short-term loans 42453773.89 37575113.83

Loan from Central Bank

Borrowing funds

Transactional financial liabilities

Derivative financial liabilities

Notes payable 33407331.28 16682324.12

Account payable 394196964.85 283643842.23

Advance receipts 5098962.57 1805311.57

Contract liabilities 340528.94 68955.21

Selling of repurchased financial assets

Deposit taking and interbank deposit

Entrusted trading of securities

Entrusted selling of securities

Employees’ wage payable 56758706.14 59719860.24

Tax payable 4177510.64 9200627.09

Other account payable 139672295.52 201317421.35

Including：Interest payable

Dividend payable

Fees and commissions payable

Reinsurance fee payable

Liabilities held for sales

Non-current liability due within 1 year 5175393.52

Other current liability 37088751.30 27523903.58

Total of current liability 713194825.13 642712752.74

Non-current liabilities：

Reserve fund for insurance contracts

Long-term loan 711388134.97 683016243.25

Bond payable

Including：preferred stock

Sustainable debt

Lease liability 9419249.23 4243855.71

Long-term payable

Long-term remuneration payable to staff

Expected liabilities 25621002.16 30741055.00

7Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Deferred income 106333226.06 110461293.15

Deferred income tax liability 61642660.91 61642660.91

Other non-current liabilities

Total non-current liabilities 914404273.33 890105108.02

Total of liability 1627599098.46 1532817860.76

Owners’ equity

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 119672784.12 119682119.05

Special reserve

Surplus reserves 98245845.47 98245845.47

Common risk provision

Retained profit 148371996.92 130746251.74

Total of owner’s equity belong to the parent company 2834412300.14 2816795889.89

Minority shareholders’ equity 1152386182.32 1147033357.18

Total of owners’ equity 3986798482.46 3963829247.07

Total of liabilities and owners’ equity 5614397580.92 5496647107.83

Legal representative: Zhang Jian Person in charge of accounting work: He Fei Head of accounting institution: Zhu Jingjing

2. Consolidated income statement

In RMB

Items Amount in this period Amount in last period

I. Turnover 670551882.04 552950209.39

Including：Operating income 670551882.04 552950209.39

Interest income

Insurance fee earned

Commission charge and commission income

II. Total operating costs 631453868.00 467514146.26

Including ：Operating costs 579671495.55 427817363.33

Interest expense

Fee and commission paid

Insurance discharge payment

Net claim amount paid

Appropriation of deposit for duty net

Insurance policy dividend paid

Reinsurance expenses

Business tax and surcharge 2117586.03 2169731.19

Sales expense 8619166.65 12186927.12

Administrative expense 31849295.48 25121747.46

R & D expense 13080014.85 11210174.64

8Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Financial expenses -3883690.55 -10991797.48

Including：Interest expense

Interest income

Add：Other income 4300287.54 4666489.60

Investment gain（“-”for loss） 5112851.74 5008410.87

Including: investment gains from affiliates -97700.99 -267795.43

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 402037.73

Credit impairment loss -4168918.12 37491.52

Impairment loss of assets -19338029.09 -26726948.99

Assets disposal income -12114.72

III. Operating profit（“-”for loss） 24992091.39 68823543.86

Add ：Non-operating income 7030.76 3907.91

Less: Non-operating expense 100678.20 7403.96

IV. Total profit(“-”for loss) 24898443.95 68820047.81

Less：Income tax expenses 1919873.63 6720531.16

V. Net profit 22978570.32 62099516.65

(I) Classification by business continuity

1.Net continuing operating profit 22978570.32 62099516.65

2.Termination of operating net profit

(II) Classification by ownership

1.Net profit attributable to the owners of parent company 17625745.18 42776335.85

2.Minority shareholders’ equity 5352825.14 19323180.80

VI. Net after-tax of other comprehensive income -9334.93 134830.38

Net of profit of other comprehensive income attributable to owners of the par

ent company. -9334.93 134830.38

（I）Other comprehensive income items that will not be reclassified into

gains/losses in the subsequent accounting period 113852.14

1.Re-measurement of defined benefit plans of changes in net debt or net a

ssets

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 113852.14

4. Changes in the fair value of the company’s credit risks

5.Other

(II)Other comprehensive income that will be reclassified into profit or loss -9334.93 20978.24

1.Other comprehensive income under the equity method investee can be r

eclassified 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 -9334.93 20978.24

9Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

7.Other

Net of profit of other comprehensive income attributable to Minority

shareholders’ equity

VII. Total comprehensive income 22969235.39 62234347.03

Total comprehensive income attributable to the owner of the parent company 17616410.25 42911166.23

Total comprehensive income attributable minority shareholders 5352825.14 19323180.80

VIII. Earnings per share

(I)Basic earnings per share 0.0348 0.0842

(II)Diluted earnings per share 0.0348 0.0842

If the enterprise merger under the same control occurs in this period the net profit realized by the consolidated party before the

merger is 0.00 yuan and the net profit realized by the consolidated party in the previous period is 0.00 yuan.Legal representative: Zhang Jian Person in charge of accounting work: He Fei Head of accounting institution: Zhu Jingjing

3. Consolidated cash flow statement

In RMB

Items Amount in this period Amount in last period

I.Cash flows from operating activities

Cash received from sales of goods or rending of services 604500101.55 497878724.28

Net increase of customer deposits and capital kept for brother company

Net increase of loans from central bank

Net increase of inter-bank loans from other financial bodies

Cash received against original insurance contract

Net cash received from reinsurance business

Net increase of client deposit and investment

Cash received from interest commission charge and commission

Net increase of inter-bank fund received

Net increase of repurchasing business

Net cash received by agent in securities trading

Tax returned 1364975.85 6520333.41

Other cash received from business operation 52681743.74 50348087.80

Sub-total of cash inflow 658546821.14 554747145.49

Cash paid for purchasing of merchandise and services 502457863.05 464527899.35

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 for Outgoing call loan

Cash paid for interest processing fee and commission

Cash paid for policy dividend

Cash paid to staffs or paid for staffs 66865538.16 72133529.61

Taxes paid 135772979.52 10012400.49

Other cash paid for business activities 19417363.90 83361320.31

Sub-total of cash outflow from business activities 724513744.63 630035149.76

Net cash generated from /used in operating activities -65966923.49 -75288004.27

II. Cash flow generated by investing

Cash received from investment retrieving 20230035.72

10Shenzhen Textile (Holdings) Co. Ltd. The First Quarterly Report 2022

Cash received as investment gains 1673424.66 5129520.27

Net cash retrieved from disposal of fixed assets intangible assets and

other long-term assets 1776.70

Net cash received from disposal of subsidiaries or other operational units

Other investment-related cash received 470457427.76

Sub-total of cash inflow due to investment activities 1675201.36 495816983.75

Cash paid for construction of fixed assets intangible assets and other

long-term assets 16535761.62 89469056.52

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 120000000.00 512374977.65

Sub-total of cash outflow due to investment activities 136535761.62 601844034.17

Net cash flow generated by investment -134860560.26 -106027050.42

III.Cash flow generated by financing

Cash received as investment

Including: Cash received as investment from minor shareholders

Cash received as loans 27922000.00 75966000.00

Other financing –related cash received

Sub-total of cash inflow from financing activities 27922000.00 75966000.00

Cash to repay debts

Cash paid as dividend profit or interests 7566288.88 4020397.33

Including: Dividend and profit paid by subsidiaries to minor shareholders

Other cash paid for financing activities 128.63 79933.50

Sub-total of cash outflow due to financing activities 7566417.51 4100330.83

Net cash flow generated by financing 20355582.49 71865669.17

IV. Influence of exchange rate alternation on cash and cash equivalents -68534.94 548403.88

V.Net increase of cash and cash equivalents -180540436.20 -108900981.64

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 121867997.52 169436255.31（II）Audit report

Is the First Quarterly Report be audited?

□ Yes √No

The Board of Directors of Shenzhen Textile (Holdings) Co. Ltd.April 292022

11