Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.Shenzhen Textile (Holdings) Co. Ltd
2026 Semi-annual Report
August 2026
1Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section I Important Notes Table of Contents and
Interpretations
The Board of Directors directors and senior officers of the
Company guarantee the authenticity accuracy and completeness of
the contents of the semi-annual report and bear individual and joint
legal liabilities for any false records misleading statements or major
omissions.The Principal LI Gang the Chief Finance Officer LIU Yu and the
Chief Accountant (accounting supervisor) LI Zhenyu declare that they
will ensure the authenticity accuracy and completeness of the
financial report in this semi- annual report.All directors have attended the board meeting at which this semi-
annual report was considered.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 is exposed to macroeconomic risks market risks
raw materials risks and intensified competition risks. Investors are
advised to pay attention to investment risks. For details please refer
to "X. Risks and Countermeasures Faced by the Company" in "Section
2Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
III Management Discussion and Analysis" of this report.The Company plans not to distribute cash dividends issue bonus
shares or increase share capital through capitalization of reserves.This report is prepared in both Chinese and English. In the event
of any discrepancy in the interpretation of the Chinese and English
texts the Chinese version shall prevail.
3Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
TABLE OF CONTENTS
Section I Important Notes Table of Contents and In....2
Section II Company Profile and Major Financial Ind... 7
Section III Management Discussion & Analysis ....... 11
Section IV Corporate governance Environment and So.. 27
Section V Significant Events ........................29
Section VI Share Changes and Shareholder Informati...36
Section VII Bonds .................................. 41
Section VIII Financial Statements ...................42
4Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Documents available for inspection
1. Accounting statements carried with personal signatures and seals of legal representative General
Manager Chief Financial officer.II. The original of all the Company's documents and the original of the announcement that have been
publicly disclosed by the Company on the website designated by the China Securities Regulatory
Commission during the reporting period.The above documents were completely placed at the Office of Secretaries of the Board of Directors of
the Company.
5Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Interpretations
Item of interpretations Refers to Interpretations
Company/The Company/ Shen Textile Refers to The Board of Directors of 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 Municipal People's Refers to State-owned Assets Regulatory Commission of
Government Shenzhen Municipal People's Government
The Controlling shareholder/ Shenzhen Investment
Holdings Co. Ltd. Refers to Shenzhen Investment Holdings Co. Ltd
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co.Ltd.Shenzhen SAPO Photoelectric Co. Ltd. Refers to SAPO Photoelectric
Beauty Century Refers to Shenzhen Beauty Century Garment Co. Ltd.Hengmei Photoelectric Refers to Hengmei Optoelectronics Co. Ltd
Hong Kong Xieli Refers to Hong Kong Xieli Maintenance Co. Ltd.Shenzhen Xieli Refers to Shenzhen Xieli Automobile Co. Ltd.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 largesize TV
Line 8 Refers to 1.49m wide polarizer production line project (underconstruction)
“CSRC” Refers to China Securities Regulatory Commission
The Report Refers to 2026 Semi-annual Report
6Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section II Company Profile and Major Financial Indicators
I. Company profile
Stock abbreviation Shen Textile A ShenTextile B Stock code 000045、200045
Modified stock ID (if any) None
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese Consolidated and Company cash flow statement
Chinese name of the
Company (if any) Shen Textile
Foreign name of the
Company (if any) SHENZHEN TEXTILE (HOLDINGS) CO. LTD
English abbreviation (If
any) STHC
Legal representative Li Gang
II. Contact person and contact manner
Secretary to the board of directors Securities affairs Representative
Name Guo Yu Guo Weiqiang
6/F Shenzhen Textile Building No.3 6/F Shenzhen Textile Building No.3
Contact address Huaqiang North Road Futian District Huaqiang North Road Futian District
Shenzhen Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail guoy@chinasthc.com guowq@chinasthc.com
III. Other circumstances
1. Company contact information
Whether the company's registered address office address and postal code website e-mail etc. have changed during
the reporting period
?Applicable □Not applicable
Room A3604 Tower A China State-owned Capital
Company's registered address Venture Building No. 2 Hengsheng Street NanshanStreet Qianhai Shenzhen-Hong Kong Cooperation Zone
Shenzhen
Postal code of the Company's registered address 518052
Company's office address 6/F Shenzhen Textile Building No.3 Huaqiang NorthRoad Futian District Shenzhen
Postal code of the Company's office address 518031
Internet Web Site http://www.chinasthc.com
Company's Email szfzjt@chinasthc.com
7Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Designated website inquiry date disclosed in the
provisional announcement (if any) July 4 2026
Designated websites inquiry index disclosed in the Juchao Website Juchao Website
provisional announcement (if any) http://www.cninfo.com.cn
2. Information disclosure and storage location
Whether the information disclosure and storage location have changed during the reporting period
□Applicable ?Not applicable
□Applicable Not Applicable The website of the stock exchange and the name and address of the media where the
company discloses the semi-annual report and the storage location where the Company's semi-annual report is
prepared has not changed during the reporting period. For details please refer to the 2025 Annual Report.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□Applicable ?Not applicable
IV. Key accounting data and financial indicators
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□Yes ? No
The reporting period Same period last year Increase/decrease
Operating income(Yuan) 1588723198.14 1600481626.31 -0.73%
Net profit attributable to the
shareholders of the listed 50776164.37 35234765.52 44.11%
company(Yuan)
Net profit after deducting of
non-recurring gain/loss
attributable to the 43893052.01 25189003.47 74.25%
shareholders of listed
company(Yuan)
Cash flow generated by
business operation 252931044.35 325334320.99 -22.26%
net(Yuan)
Basic earning per
share(Yuan/Share) 0.1002 0.0696 43.97%
Diluted gains per
share(Yuan/Share) 0.1002 0.0696 43.97%
Weighted average ROE(%) 1.70% 1.19% 0.51%
Increase or decrease at the
End of the reporting period At the end of last year end of the reporting periodcompared with the end of
the last year
Gross assets(Yuan) 5550232435.10 5418295716.77 2.44%
Net assets attributable to
shareholders of the listed 3006182703.30 2979719569.18 0.89%
company(Yuan)
8Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
V. Differences between accounting data under domestic and overseas accounting
standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with
the international accounting standards and the Chinese accounting standards
□Applicable ?Not applicable
During the reporting period of the Company there was no difference in net profits and net assets in financial reports
disclosed in accordance with international accounting standards and Chinese accounting standards
□ Applicable□√ Not applicable
□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 None
VI. Non-recurring profit or loss items and amounts
?Applicable □Not applicable
In RMB
Rewards for the key management
personnel Items Amount Description
Non-current asset disposal
gain/loss(including the write-off part Mainly the losses on write-off of fixed
for which assets impairment -21479.04 assets
provision is made)
Government grants included in profit
and loss of the current period (except
for government subsidies that are
closely related to the Company's
normal business operation comply 690798.69 Mainly government subsidies.with national policies and are enjoyed
in accordance with defined criteria
and have a continuing impact on the
Company's profit or loss)
Losses/gains from changes of fair
values occurred in holding trading
financial assets and trading financial
liabilities and investment income Mainly gains and losses from
obtaining from the disposal of trading changes in fair value arising from the
financial assets trading financial 2258321.04 company's holding of trading financial
liability and financial assets available- assets and derivative financial
for-sale excluded effective hedging liabilities.business relevant with normal
operations of the Company
Reversal of the account receivable
depreciation reserves subject to 5003582.71
separate impairment test
Other non-business income and Mainly the litigation compensation
expenditures other than the above -577522.61 expenses.Less :Influenced amount of income
tax 513944.52
9Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Influenced amount of minor
shareholders’ equity (after tax) -43356.09
Tota 6883112.36
Details of other profit and loss items that meet the non-recurring profit and loss definition
□Applicable ?Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by the
Guangzhou-Foshan Expressway to be clarified it will affect the normal judgment of the Company's operating
performance and profitability by the user of the report.None For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies 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 recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
10Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section III Management Discussion & Analysis
I. Main business engaged in by the Company during the reporting period
(I) Development of the industry to which the company belongs
Polarizers are also known as polaroid which can control the polarization direction of specific light beams. When
natural light passes through the polarizer the light whose vibration direction is perpendicular to the transmission axis
of the polarizer will be absorbed leaving only polarized light whose vibration direction is parallel to the transmission
axis of the polarizer. The downstream polarizer is mainly used in the panel industry. According to different panel types
polarizers mainly include TN STN TFT and OLED. Currently the global polarizer market is dominated by TFT-LCD
polarizers. Each LCD panel requires two polarizers.The high-quality development of the polarizer industry has a profound impact on the entire display industry. As
one of the core raw materials of the display panel the demand for polarizer is directly affected by the fluctuation of the
display panel market. In recent years with the accelerated transfer of the global display panel industry to China
China's polarizer industry has ushered in a stage of rapid development. The production capacity and process
technology level of domestic polarizer manufacturers have continuously jumped. China's polarizer industry has
significantly improved its position and influence in the global market. Chinese mainland has become the world's largest
polarizer production base.The company is one of the main domestic polarizer research and development production and sales enterprises.It is a pioneer in the polarizer industry in China and has now developed into a leading enterprise in the domestic
polarizer industry becoming an important supplier of mainstream panel enterprises worldwide. In the first half of 2026
affected by multiple overlapping factors such as the complex and volatile global economic and geopolitical situations
supply and price fluctuations of upstream petrochemical commodities caused by disruptions to international shipping
and logistics continuous optimization and adjustment of the national policies related to "Two-New and Two-Priority"
policies (namely large-scale equipment upgrades and consumer goods trade-in programs and major national
strategies and security capacity building in key areas) phased demand release driven by large-scale sports events
and the rising prices of materials for storage devices stimulated by AI industry development the global display panel
and terminal market generally showed a slow recovery trend but there were still a certain degree of fluctuations and
challenges. Currently the polarizer industry is witnessing continuous M&A consolidation and capacity expansion. In
the future key attention should be paid to risks regarding the evolution of the industry's competitive landscape the
pace of the release of effective market demand the upward pressure of raw material costs and supply chain security.(II) Main businesses engaged by the Company
The Company's main business is a high-tech industry focusing on the R&D production and sales of polarizers for
OLED and LCD display and the operation and management of its own properties.During the reporting period the Company's main business has not changed significantly. First the Company
actively adjusted its product structure implemented a product differentiation strategy and increased the sales
proportion of high-value-added products. It has the sales volume of ultra-large-size (85" and above) polarizers and
polarizers for OLED mobile surged significantly; Secondly it continued to carry out lean management to further
increase the production line speed and improve the manufacturing efficiency; Thirdly it steadily promoted the
construction of Line 8 project advanced the pile foundation engineering construction and was about to enter the main
building construction stage of the plant; Fourthly it ensured work safety improved the construction of safety
management system strengthened safety training and education carried out safety risk identification and hidden
11Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
danger investigation and rectification shore up weak links and prevented accidents; Fifthly it continued to well
manage its own properties optimized property service quality and improved tenant satisfaction maintaining a stable
property occupancy rate and ensuring stable revenue from property leasing business under the condition of substantial
fluctuations in market demand.During the reporting period the Company recorded operating revenue of RMB 1.589 billion representing a
decrease of 0.73% compared with the same period of the prior year. Net profit attributable to shareholders of the listed
company amounted to RMB 50.7762 million an increase of 44.11% year-on-year. This growth was primarily
attributable to the Company's quality- and efficiency-enhancement initiatives including the optimization of its product
mix strengthened supply chain management to reduce procurement costs upgrading of production processes and
implementation of refined management and control measures further compounded by the decline in overall
procurement costs resulting from the depreciation of the Japanese yen during the period. The Company's profitability
improved and its overall operations remained steady and sound..(III) Main products of the Company and their applications
Currently the Company has 7 mass-production polarizer production lines and its main products cover OLED and
LCD polarizers. These products are mainly applied to products such as TVs laptops monitors vehicles industrial
controls instruments and meters smartphones and wearable devices. By continuously strengthening the expansion
of sales channels and the construction of its own brand the Company has become a qualified supplier for mainstream
panel enterprises such as CSOT BOE LGD Xianyang Caihong HKC Tianma Microelectronics Sharp and so on.The main product types and applications of the Company's polarizer production lines are as follows:
Line Place Product breadth Annual capacity Main project
Line 4 Pingshan 1490mm 10 million m2 TFT/OLED
Line 5 Pingshan 650mm 2 million m2 TFT/OLED
Line 6 Pingshan 1490mm 16 million square meters TFT/OLED
Line 7 Pingshan 2500mm 32 million m2 TFT/OLED
(IV) Business model of the Company
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 the Company jointly develops and carries out high-standard production management manufactures
high-quality products uses advanced polarizer roll-on equipment to cooperate with downstream panel manufacturers'
production lines optimizes production and logistics links reduces production and transportation costs creates value
for customers and achieves win-win cooperation.(V) Market position of company products
The Company is one of the main domestic enterprises in the R&D production and sales of polarizers. It began its
polarizer business in 1995 and achieved the first mass production of polarizers in China in 1998 becoming a pioneer
in China's polarizer industry. The Company has mastered core technologies for the R&D and production of TN/STN-
LCD TFT-LCD and OLED polarizers with the capability to produce a full range of polarizer products in large medium
and small sizes. The Company was the first to achieve mass production of polarizers for OLED TVs and OLED mobile
phones in China filling a gap in the domestic industry.(VI)Main performance drivers of the Company
See "II. Core Competitiveness Analysis" in this section for details.
12Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
II. Analysis of core competitiveness
(I) Technology advantages. SAPO Photoelectric is one of the earliest national high-tech enterprises in China to
enter the field of display polarizer research and development and production. It has 30 years of polarizer industry
operation experience and its products cover mainstream display applications such as TN/STN LCD TFT LCD OLED
etc. It has a complete set of proprietary technology and independent intellectual property rights for polarizers that can
meet customer needs and has the production capacity of a full range of polarizers in large medium and small sizes.SAPO Photoelectric has three innovation platforms including "Guangdong Provincial Engineering Research Center"
"Shenzhen Polarization Material and Technology Engineering Laboratory" and "Shenzhen Enterprise Technology
Center". The platforms focus on the R&D and industrialization of the core production technologies of polarizers for
OLED and LCD. As of the end of the reporting period SAPO Photoelectric has obtained a total of 119 patent
authorizations including 23 domestic invention patents 92 domestic utility model patents and 4 overseas utility model
patents. Four national standards and two industry standards were independently drafted and formulated by SAPO
Photoelectric and approved for implementation. In addition it participated in the drafting and formulation of 1 industry
standard which has been approved for implementation. Further it participated in the drafting and formulation of 3
group standards which have been approved for implementation.(II) Talent advantages. The Company consistently practices the core strategy of "strengthening the enterprise with
talents." Based on the development path of independent R&D and relying on a specialized innovative R&D platform it
has built a standardized and efficient R&D management system. The Company has gathered a group of highly
versatile professionals deeply rooted in the display materials industry with a global operational vision. The team covers
core key positions such as cutting-edge technology R&D and refined production and operation management building
a solid talent foundation for the localized substitution of the domestic polarizer industry and the high-quality
development of the Company. The Company has established and improved an all-round multi-level system for talent
introduction cultivation and incentive continuously consolidating its core talent competitiveness and fully unleashing
the innovative vitality of its talents. First set up dedicated core R&D teams for tackling key technical challenges. The
Company has built a dual career development tracks for technical and management roles. Combined with diversified
cultivation models such as specialized skills training and in-depth cooperation between universities and enterprises it
accurately empowers the growth of technical talents and efficiently promotes the R&D technological iteration and
industrialization of new polarizer products. Second improve the talent echelon building for mid-level backbones.Through a dual-track selection mechanism involving market-oriented external recruitment and internal open
competition the Company continuously replenishes the talent reserves for key positions in manufacturing R&D and
innovation and market operations continuously delivering high-quality professional manpower for the Company's
capacity expansion customer development and business expansion. Third carry out regular talent rotation
exchanges and specialized empowerment training. Focusing on the targeted cultivation of core backbone employees
the Company comprehensively enhances the professional performance capabilities and cross-departmental
collaborative efficiency of management personnel and front-line core employees continuously activating the internal
momentum of the team and organizational vitality. Fourth improve the incentive and restraint mechanism to promote
the implementation of strategic objectives. In response to the company's core technical challenges performance
breakthrough points and key project construction establish a special reward system to guide key employees to pool
their efforts and focus on advancing key projects and resolving major problems. Meanwhile explore the establishment
of an equity incentive mechanism to align the value creation of the core team with the company's economic profits and
strategic objectives and build a medium- to long-term value creation and sharing mechanism featuring shared benefits
and shared risks..
13Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(III) Market advantages. The Company has a good domestic and international customer base. Compared with
advanced foreign competing manufacturers the greatest advantage lies in having localized supporting capabilities
close to the panel market and strong support from national industrial policies. In terms of market demand with the
successive mass production of high-generation TFT-LCD panel production lines such as domestic 10.5-generation and
11-generation lines as well as the accelerated development of larger-sized panels and terminal products the demand
for polarizers especially ultra-large-size polarizers in the domestic market has shown a steady growth trend. The
Company possesses one of the few 2500mm ultra-wide polarizer production lines in the world maintaining an
industry-leading advantage in both technology and production capacity for ultra-large and large-size polarizers which
enables the Company to better align with the market demand for the ultra-large-size polarizers. With the continuous
breakthrough of cutting-edge technology the demand for high-end polarizer products such as OLED and vehicle-
mounted polarizer is growing rapidly and is becoming a blue ocean market for polarizer companies to compete. The
Company has achieved mass production breakthroughs and continuous supply in OLED TVs and mobile phone
polarizers and has accumulated rich experience in the production of high-quality automotive polarizers which will put
it in a favorable position in market competition. In terms of market development the Company focuses on customer
needs continuously optimizes the production process and product structure improves quality control organically
combines production and sales establishes a rapid response mechanism gives full play to the advantages of
localization effectively provides point-to-point professional services and promotes the verification of various models
around the overall strategic deployment to form a stable supply chain and continuously improve market share.(IV) Quality advantages. The Company always adheres to the quality policy of "meeting customer needs pursuing
excellent quality; implementing green manufacturing and persisting on continuous improvement" pays attention to
product quality control and the product quality is comparable to international standards. The Company strictly controls
product performance indicators standardizes incoming inspection standards and takes quality improvement and
consumption reduction as the starting point to achieve simultaneous improvement of output and quality; introduces
modern management system and passes ISO9001 quality management system ISO14001 environmental
management system ISO45001 occupational health and safety management system QCO80000 hazardous
substance management system and ISO50001 energy management system certification; The products meet the
environment protection requirements of RoHS directive and realize the standardized management of the whole
process from raw materials supply manufacturing marketing to customer service so as to ensure the stability of
product quality.(V).Management advantages. The Company has been deeply involved in the polarizer industry for 30 years
accumulated rich production and management experience and establishes a leading domestic management process
control system quality management system and stable raw material supply channels. The Company has carried out
in-depth and comprehensive benchmarking work organized management personnel to learn advanced experience
from customers and peers vigorously promoted standardized and refined management and learned from the
management experience of domestic and overseas polarizer enterprises to optimize the organizational structure
reduce the management levels and continuously improve the Company's management efficiency; The Company
continues to optimize the management systems and incentive mechanisms to improve the decision-making efficiency
and the market response speed and refine the R&D reward system. In addition it achieves a deeper integration of
corporate value and employee value effectively stimulating new business vitality; the Company steadily promotes
strategic transformation optimizes resource allocation and orderly phases out "non-core businesses and inefficient
assets" to promote the concentration of resources in the main business; the Company continues to improve the level of
production management increase the production speed stabilize the product yield rate and steadily enhance the
14Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
efficiency of production lines so that the production technical indicators reach a higher level in the industry; the
Company continuously strengthened whole-process quality management effectively reduced customer complaints and
product returns and won quality improvement awards from several key customers by virtue of quality improvement
achievements; through the approach of listing tasks based on project initiation the Company has effectively improved
efficiency and quality resulting in noticeable reductions in material costs and an increase in product yield rates.(VI).Policy advantages. Polarizer industry is an important part of the new display industry chain. The continuous
development of the Company's polarizer business has improved the overall supply capacity of domestic polarizer
greatly reduced the dependence of domestic panel enterprises on imported polarizer maintained the safety of the
country's new display industry played a positive role in enhancing the overall competitiveness of China's new display
industry chain and boosted the coordinated development of the whole industrial chain of "20+8" ultra-high-definition
video display industry cluster in Shenzhen. The Company's polarizer business unit SAPO Photoelectric has continued
to receive the recognition as a national high-tech enterprise and its polarizer projects have received multiple policy and
financial supports from national and local governments; in addition SAPO Photoelectric also enjoys the preferential
policy of import duty exemptions on key raw materials.III. Analysis of primary business
Overview
See the relevant contents of "I. Main business engaged in by the Company during the reporting period".YoY changes in key financial data
In RMB
The reporting period Same period last Increase/Decreaseyear (%) Reason for changes
Turnover 1588723198.14 1600481626.31 -0.73%
Operation cost 1322616178.72 1362512734.09 -2.93%
42. Sales expenses 16715574.28 16031119.28 4.27%
43. Management cost 60903745.33 59632564.54 2.13%
Mainly due to the
increase in exchange
45. Financial gains due to the
expenses -4963785.61 22668488.90 -121.90% fluctuations of
exchange rate during
the reporting period.Mainly due to the YoY
Income tax expenses 4088822.46 7663966.35 -46.65% decrease in deferred
income tax expenses.R&D investment 49414846.76 52739746.19 -6.30%
Net cash flows arising
from operating 252931044.35 325334320.99 -22.26%
activities
Mainly attributable to
Net cash flow the increase in the
generated by -158510077.47 23352146.97 -778.78% company's investmentin the construction of
investment Line 8 during the
reporting period
Net cash flow -40680121.96 -67003672.36 39.29% Mainly due to the new
generated by loans during the
15Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
financing reporting period.Mainly attributable to
the increase in the
Net increase in cash company's investment
and cash equivalents 52637003.09 275139281.81 -80.87% in the construction of
Line 8 during the
reporting period.Credit impairment
loss 275783.04 815027.65 -66.16%
Significant changes in the Company's profit composition or profit sources during the reporting period
□Applicable ?Not applicable
There were no significant changes in the Company's profit composition or profit sources during the reporting period.Composition of operating revenue
In RMB
The reporting period Same period last year Increase/Decrea
Amount Proportion Amount Proportion se(%)
Total operating
revenue 1588723198.14 100% 1600481626.31 100% -0.73%
On Industry
Manufacturing 1535971576.91 96.68% 1543457384.39 96.44% -0.49%
Property leasing 52751621.23 3.32% 57024241.92 3.56% -7.49%
On Products
Polarizer sales 1513251246.96 95.25% 1511063971.82 94.41% 0.14%
Lease and
Management of 75471951.18 4.75% 89417654.49 5.59% -15.60%
Property
Area
Domestic 1367177679.32 86.06% 1401726654.92 87.58% -2.46%
Overseas 221545518.82 13.94% 198754971.39 12.42% 11.47%
Industry product or region accounting for more than 10% of the Company's operating revenue or operating profit
?Applicable □Not applicable
In RMB
Increase/decr Increase/decr Increase/decr
ease of ease of ease of gross
Gross revenue in the business cost profit rate over
Turnover Operation cost profit same period over the same the same
rate(%) of the period of period of the
previous previous year previous year
year(%) (%) (%)
On Industry
Manufacturing 1535971576.91 1310291933.35 14.69% -0.49% -2.90% 2.12%
Property
leasing 52751621.23 12324245.37 76.64% -7.49% -5.68% -0.45%
On Products
Polarizer
sales 1513251246.96 1295208878.78 14.41% 0.14% -1.94% 1.82%
Lease and
Management 75471951.18 27407299.94 63.69% -15.60% -34.30% 10.35%
of Property
Area
16Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Domestic 1367177679.32 1133959428.61 17.06% -2.46% -6.19% 3.29%
Overseas 221545518.82 188656750.11 14.85% 11.47% 22.71% -7.80%
Under the circumstances that the calculation method of the Company's main business data is adjusted during the
reporting period the Company's main business data for the latest period is adjusted according to the calculation
method at the end of the reporting period
□Applicable ?Not applicable
IV. Analysis of non-primary business
?Applicable □Not applicable
In RMB
Amount Proportion in totalprofit Explanation of cause
Sustainable (yes or
no)
Mainly due to the
gains upon maturity
of wealth
management
products purchased
47. Investment by the Company the
income -3539905.76 -4.46% losses upon maturity Sustainableof forward foreign
exchange contracts
and the losses of
equity investees
during the reporting
period.It is mainly due to the
fair value changes
obtained by the
Company from
Gains and losses on purchasing financial
changes in fair value 6593057.37 8.31% products and the Notunexpired part of
forward foreign
exchange contracts
during the reporting
period.It was mainly due to
the Company's
inventory
depreciation
Impairment of assets -79106067.18 -99.75% provision in Sustainable
accordance with
accounting policies
during the reporting
period.It is mainly due to the
52. Non-Operation liquidated damages
income 175972.60 0.22% received by the NotCompany during the
reporting period.
17Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
It is mainly due to the
litigation-related
53.Non-current
expenses 774974.25 0.98%
compensations paid
by the Company Not
during the reporting
period.It was mainly due to
the fact that the
Company received
government
46. Other income 17367048.85 21.90% subsidies andenjoyed preferential Sustainable
policies of value-
added tax deduction
during the reporting
period.V. Analysis of assets and liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of the reporting period End of the last year
Proportion Notes to the
Proportion Proportion in increase/ significant
Amount in the total Amount the total decrease change
assets(%) assets(%)
Monetary funds 517854162.69 9.33% 449964450.38 8.30% 1.03%
Account
receivable 817955456.71 14.74% 761807949.52 14.06% 0.68%
8. Inventories 970224264.98 17.48% 884642355.51 16.33% 1.15%
Investment real
estate 100950528.65 1.82% 105730781.63 1.95% -0.13%
Long-term
equity 104030653.89 1.87% 107583586.91 1.99% -0.12%
investment
Fixed asset 1541311409.66 27.77% 1657314603.81 30.59% -2.82%
Construction in
progress 204595310.01 3.69% 179954389.78 3.32% 0.37%
Right to use
assets 16417697.66 0.30% 16894843.60 0.31% -0.01%.Contract
liabilities 2650257.63 0.05% 3132419.01 0.06% -0.01%
Long-term loans 242621163.05 4.37% 261718054.81 4.83% -0.46%
Lease liabilities 10705698.47 0.19% 10415997.17 0.19% 0.00%
Transactional
financial assets 748398696.32 13.48% 736341286.18 13.59% -0.11%
Accounts
payable 479599097.76 8.64% 344656835.89 6.36% 2.28%
Other payables 142982024.31 2.58% 159826234.73 2.95% -0.37%
18Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Main overseas assets
□Applicable ?Not applicable
3. Assets and liabilities measured at fair value
?Applicable □Not applicable
In RMB
Rewards for Gain/Loss Cumulative
the key Opening on fair value fair value
Impairment Purchased Sold amount
management change in change provisions in amount in in the Other Closing
personnel amount the reporting recorded the reporting the reporting reporting change amount
Items period into equity period period period
Financial
assets
1. Financial
assets
measured at
fair value
through profit
or loss 736341286.18 7165205.48 0.00 0.00 220000000.00 215107795.34 0.00 748398696.32
(excluding
derivative
financial
assets)
2. Derivative
financial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
4．Other
equity
Instrument 159261600.00 0.00 0.00 0.00 0.00 0.00 0.00 159261600.00
Investment
Subtotal of
financial 895602886.18 7165205.48 0.00 0.00 220000000.00 215107795.34 0.00 907660296.32
assets
Accounts
Receivable 22584820.72 0.00 0.00 0.00 73389940.88 94467102.26 0.00 1507659.34
Financing
Total 918187706.9 293389940.8 309574897.6 909167955.67165205.48 0.00 0.00 0.00
0806
Financial
liabilities 4071800.19 572148.11 0.00 0.00 8984136.52 8984136.52 0.00 572148.11
Other changes
None
Did great change take place in measurement of the principal assets in the reporting period
□Yes ?No
19Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Restricted asset rights as of the end of this Reporting Period
(1) The restricted monetary funds mainly include the funds equivalent to RMB 8799040.80 due to the freezing of
accounts and the bill and L/C guarantee of RMB 6920565.27.
(2) Restricted notes receivable shall be notes receivable endorsed or discounted by the Company and not yet due
on the balance sheet date.
(3)The restricted fixed assets and intangible assets are mainly the mortgage loans applied for subsidiary SAPO
Photoelectric with part of its self-owned properties from the syndicate led by Bank of Communications Co. Ltd.Shenzhen Branch and the guarantee provided by the Company for the mortgage loans. For details please refer to the
Announcement on the Provision of Guarantees by the Company for Subsidiaries to Apply for Bank Mortgage Loans
(No. 2020-19) and the Announcement on the Progress of the Provision of Guarantees by the Company for
Subsidiaries (No. 2020-46) published by the Company on Cninfo (http://www.cninfo.com.cn).VI. Analysis of 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
In RMB
Reason for
Fixed Accumulative Accumulative
Input amount in not meeting
Investment assets actual input Capital Project Estimated realized Disclosure Disclosure index (if
Name Industry involved the Reporting the schedule
method investment amount as of the Source progress revenues revenues as of date (if any) any)
Period and expected
or not period-end the period-end
revenues
Computer
1.49m wide
communication Self-owned
polarizer
and other funds and Company
Production Still under October 16
Self-build Positions electronic 22496919.67 202451309.45 loans from 15.18% 0.00 0.00 announcement No.:
line project construction 2025
equipment financial 2025-39
(Line
manufacturing institutions
8)
industry
Tota -- -- -- 22496919.67 202451309.45 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
(1)Securities investment
□Applicable ?Not applicable
The Company had no securities investment during the reporting period.
20Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2)Investment in Derivatives
?Applicable □Not applicable
1)Derivatives investment for the purpose of hedging during the reporting period
?Applicable □Not applicable
Unit:RMB 10000
Proportion
of ending
Gain/Loss investment
on fair Cumulative Purchase Sales amount to
Derivative Initial Beginning value fair value amount amount theinvestment investment amount change in change during the during the
Ending Company's
types amount the recorded reporting reporting amount net assets
reporting into equity period period at the end
period of the
reporting
period
Forward
foreign
exchange 0 11199.25 -57.21 0 35849.63 42423.93 4624.95 1.00%
contracts
Tota 0 11199.25 -57.21 0 35849.63 42423.93 4624.95 1.00%
The
accounting
policies and
specific
principles of
accounting
for hedging
business
during the
reporting The company conducts recognition and measurement in accordance with Accounting Standards for
period as Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and
well as a Accounting Standards for Business Enterprises No.37 —— Presentation of Financial Instruments and
description of conducts accounting and disclosure for the proposed foreign exchange derivatives trading business to
whether reflect relevant items on the balance sheet and income statement.there is a
significant
change
compared
with the
previous
reporting
period
A description
of the actual During the reporting period the profit and loss of the fair value change of the undelivered Forward
profit and Foreign Exchange Contract was RMB 572100 and the investment loss of the delivered Forward
loss during Foreign Exchange Contract was RMB 4.3347 million with impacts on the net profit attributable to the
the reporting parent company of RMB -343300 and RMB -2600800 respectively.period
Explanation To effectively control the uncertain impact of foreign exchange rate fluctuations on its operating
of hedging performance and enhance financial stability the company's holding subsidiary SAPO Photoelectric
21Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
effect engages in foreign exchange derivative trading for hedging purposes. To effectively control the
uncertainties caused by significant foreign exchange rate fluctuations on corporate performance and
enhance the financial stability SAPO Photoelectric (a subsidiary of the Company) has initiated foreign
exchange derivatives trading for hedging purposes.Derivative
investment
funding Self funds
sources
The company's foreign exchange hedging operations are conducted under the "risk-neutral"
management philosophy with the primary objective of mitigating and preventing currency risks. The
scale of the trading business matches with the actual business and no speculative or arbitrage
transactions are conducted. However these hedging activities inherently carry certain risks which
mainly include: 1. Risk of exchange rate fluctuation: If the trend of foreign exchange rate deviates
significantly from the company's judgment of the direction of exchange rate fluctuation hedging losses
Risk analysis may occur; 2. Internal control risks: Foreign exchange hedging business is highly professional and
and control complex which may cause risks due to imperfect internal control system; 3. Performance risk: There is
measures of the risk caused by the failure to perform the contract and default in foreign exchange hedging business;
derivatives 4. Legal risks: The contract may not be executed normally due to the change of relevant laws and
positions regulations or the violation of relevant laws and regulations by the counterparty which may cause losses
during the to the company. Risk control measures taken by the Company: 1. SAPO Photoelectric will implement
reporting the company's "Foreign Exchange Hedging Business Management System" by further refining its
period hedging framework and operational guidelines. The Company will establish clear regulations covering
(including but foreign exchange management principles approval authorities hedging strategies internal workflows
not limited to information segregation measures risk management mechanisms risk mitigation procedures and
market risk information disclosure requirements. 2. To mitigate the risks of significant exchange rate fluctuations
liquidity risk SAPO Photoelectric has deployed dedicated professionals in business operations and risk management
credit risk to control the risk of foreign exchange rate market analysis and product research. The Company has
operational also engaged third-party institutions for expert decision-making support. These teams promptly report
risk legal any anomalies implement emergency measures and adjust business strategies as needed to minimize
risk etc.) foreign exchange losses. 3. The Company's independent directors have the right to oversee and inspectthe use of funds and may hire professional institutions for audit if necessary. 4. The Company's Audit
Department is the supervisory body for foreign exchange hedging activities responsible for reviewing
and supervising the actual operations use of funds and profit and loss situations making report to the
Audit Committee of the Board of Directors urging the Financial Department to handle accounting in a
timely manner and verifying the accounting treatment. 5. In order to control the risk of transaction
default SAPO Photoelectric only conducts foreign exchange hedging business with large banks and
other financial institutions with legal qualifications.The situation
of market
price or fair
value
changes of
products in
the reporting
period of the The company conducts recognition and measurement in accordance with Chapter VII "Determination of
invested Fair Value" of the "Accounting Standards for Business Enterprises No. 22 - Recognition and
derivatives Measurement of Financial Instruments": The change in fair value of foreign exchange contracts
shall be confirmed during the reporting period was RMB -572100 impacting the net profit attributable to the
disclosed. parent company by RMB -343300. The fair value of the Foreign Exchange Contract is determined
The analysis according to the bank's foreign exchange product quotation on the balance sheet date.of the fair
value of
derivatives
shall disclose
the specific
methods
used and the
22Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
setting of
related
assumptions
and
parameters.Subject
matter (if Not applicable
applicable)
Derivative
investment
approval
board November 29 2025
announceme
nt date (if
any)
Derivative
investment
approval
shareholders'
meeting December 24 2025
announceme
nt date (if
any)
2) Speculative derivatives investments during the reporting period
□Applicable ?Not applicable
The company did not have derivatives investment for speculative purposes during 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. Sale of major assets and equities
1. Sales of major assets
□Applicable ?Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□Applicable ?Not applicable
VIII. Analysis of major holding and 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
23Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Place of
Company name Type Main business Total assets Net assets Turnover Operating profit Net Profit
registration
Polarizer
SAPO
Subsidiary production 583333333. 00 4383046367.97 3332351865.19 1539256959.23 59304702.90 61098591.51
Photoelectric
and sale
Subsidiaries obtained or disposed in the reporting period
□Applicable ?Not applicable
Description of the main holding and equity participation companies
The financial data of the subsidiary SAPO Photoelectric in the above table are the data of its consolidated financial
statements. For details of its performance fluctuations and reasons for changes please refer to "III Analysis of primary
business" in "Section III Management Discussion and Analysis".IX. Structured entities controlled by the Company
□Applicable ?Not applicable
X. Risks faced by the Company and countermeasures
(I)Macroeconomic risks
At present the domestic economy is stable and progressing and the overall situation is repairing. However the
international environment is complex and severe geopolitical tensions and global economic growth is facing
slowdown pressure. As one of the upstream manufacturers in the display product market the Company cannot rule
out the risk that unpredictable macroeconomic fluctuations may affect the Company's performance.Countermeasures: The Company will pay close attention to the economic development dynamics at home and
abroad take the initiative to study and judge the macroeconomic environment study the national policy orientation
strengthen the tracking and analysis of major industry information timely grasp the development trend of the industry
improve the early warning ability of business risks and timely adjust the Company's operation and management
strategies according to the market changes. At the same time the Company will continue to optimize the product
structure improve the market development ability strengthen internal management control business risks and ensure
the steady development of the Company.(II) Market risks
As polarizer is a core and key material in the new display industry chain its development is closely dependent on
the iteration of display panel technology and changes in market demand. Currently China's polarizer industry is in a
critical period of accelerated domestic substitution and driven by emerging application scenarios such as ultra-large
sizing OLED flexibility and automotive displays the demand for technological upgrading is urgent. If the Company fails
to keep up with the technological development trends in a timely manner resulting in lagging R&D of new product or
application verification not meeting expectations; Alternatively intensified industry competition could lead to a decline
in the price of display panel thereby transmitting the cost pressure to the upstream polarizer segment which may
adversely affect the Company's operating performance and market competitiveness.Countermeasures: Under the complex market environment the Company actively promotes the introduction of
new product clients to stabilize customer confidence; Efficiently advancing the construction of the Line 8 project
expanding the production capacity of polarizers and enhancing the supply capacity of high value-added products. At
the same time it will maintain close communication with customers at all levels pay attention to the dynamics of
product demand deeply explore market potential capabilities optimize product structure and increase market share;
24Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
In addition it adheres to technological innovation improves and optimizes the R&D innovation system continuously
enhances the product development ability to meet market demand continuously improves the yield of production lines
reduces material losses effectively enhances core competitiveness and cope with market risks.(III)Raw materials risk
There are high barriers to the core production technology of upstream materials of polarizers which are mostly
monopolized by foreign manufacturers and the localization rate is not high. At present the key raw materials required
for the manufacture of polarizers such as PVA film TAC film and other optical films are basically monopolized by
Japanese enterprises. The price of the main optical film materials is affected by the production capacity of Japanese
suppliers market demand and the exchange rate of Japanese yen thus affecting the unit cost of the Company's
products.Countermeasures: The Company will continuously optimize the supply chain system increase the diversified
expansion of suppliers improve its bargaining power with suppliers actively explore the localized substitution of
imported raw materials promote the introduction of highly cost-effective raw materials steadily upgrade production
management standards continuously boost equipment utilization rate and reduce the loss rate maintain production
stability and continuity and reduce product production costs; If necessary the Company can choose to take measures
such as forward foreign exchange and foreign exchange options to reduce the cost risk caused by drastic fluctuations
in exchange rates.(IV)Risks of intensified competition
With major domestic polarizer manufacturers accelerating the construction and expansion of production lines in
recent years the production capacity of polarizers especially large-sized polarizers will continue to grow in the future.If the downstream consumer market recovers less than expected the competition in the polarizer industry will further
intensify.Countermeasures: Facing fierce competition the Company will strengthen the close cooperation with existing
high-quality customers through excellent product quality and customer service. It will strengthen the synergy efficiency
among various production lines to enhance the profitability of the Company's polarizer business. At the same time pay
close attention to the dynamics of new product demand increase R&D investment optimize product structure
continuously explore potential markets and increase market share.XI. Formulation and implementation of market value management system and
valuation improvement plan
Whether the Company has formulated a market value management system.□Yes ?No
Whether the Company has disclosed plans for valuation enhancement.?Yes ?No
To effectively enhance the investment value of the listed company increase investor returns and safeguard the
legitimate rights and interests of both the company and its investors the company has actively responded to and
implemented regulatory requirements by developing a valuation enhancement plan tailored to its specific
circumstances. The company will focus on improving the quality and efficiency of its core business operations
innovating its capital management practices strengthening its incentive and restraint mechanisms prioritizing
shareholder returns enhancing the quality of information disclosure and the depth of investor communication
reinforcing compliance and risk management measures embracing sustainable development principles and
continuously driving the enhancement of the company's investment value.In accordance with the relevant provisions of the "Regulatory Guidelines for Listed Companies No.10 – Market
25Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Capitalization Management" and the Company's Articles of Association among other applicable regulations the
Company held its Fourth Meeting of the Ninth Board of Directors on August 182026 at which the "Proposal on
Formulating the' Valuation Enhancement Plan '" was reviewed and approved. For further details please refer to the
Company's "Announcement on the Valuation Enhancement Plan" (No.2026-29) published on the CNINFO Information
Network (http://www.cninfo.com.cn) on August 192026.XII. Implementation of the action plan of "double improvement of quality and
return"
Whether the company has disclosed the announcement of the action plan of "double improvement of quality return".□Yes ?No
26Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section IV Corporate governance Environment and Society
I. Changes in directors and senior officers of the Company
?Applicable □Not applicable
Name Positions Types Date Reason
Wang Chuan Description of his Left for termposition in other units expiration May 20 2026 Change of term
Meng Fei Description of his Left for termposition in other units expiration May 20 2026 Change of term
Remuneration to
directors supervisors
Wang Kai and senior Left for termexpiration May 20 2026 Change of termexecutives in the
reporting period
Huang Min Secretary to the Left for termboard of directors expiration May 20 2026 Change of term
Gong Daihui Description of hisposition in other units Elected May 20 2026 Change of term
Guo Jinjie Description of hisposition in other units Elected May 20 2026 Change of term
Remuneration to
directors supervisors
Sun Xiaowei and senior Elected May 20 2026 Change of term
executives in the
reporting period
Guo Yu Secretary to theboard of directors Employment May 20 2026 Change of term
II. Profit distribution and conversion of capital reserves into share capital during
the reporting period
□Applicable ?Not applicable
The Company plans not to distribute cash dividends issue bonus shares or convert capital reserves into share capital
for half a year.III. Implementation of the Company's equity incentive plan employee stock
ownership plan or other employee incentive measures
□Applicable ?Not applicable
During the reporting period the Company had no equity incentive plan employee stock ownership plan or other
employee incentive measures and their implementation.IV. Environmental information disclosure
Whether the listed company and its main subsidiaries are included in the list of enterprises required to disclose the
environmental information by law
?Yes □No
Number of enterprises included in the list of enterprises legally disclosing
environmental information 1
27Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Inquiry index of environmental
No Company name information disclosure report
according to law
Public website of Department of
Ecology and Environment of
1 SAPO Photoelectric Guangdong Province (https://www-
app.gdeei.cn/gdeepub/front/dal/dal/n
ewindex)
V. Social responsibilities
In the Reporting Period the Company actively fulfilled its corporate social responsibility actively participated in
consumption assistance work and completed consumption assistance procurement of RMB 435100. The company
disclosed the "2025 Environmental Social and Corporate Governance (ESG) Report" which systematically displayed
the company's achievements in environmental social and corporate governance in 2025. For details please refer to
the "2025 Environmental Social and Corporate Governance (ESG) Report" of Cninfo (http://www.cninfo.com.cn) on
May 21 2026.
28Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section V Significant Events
I. Commitments made by the Company's actual owner shareholders related
parties acquirers the Company and other related parties that have been fulfilled
within the reporting period and those that have not been fulfilled as of the end of
the reporting period
□Applicable ?Not applicable
□Applicable Not Applicable During the reporting period there were no commitments that have been fulfilled by the
Company's actual controller shareholders related parties acquirers the Company and other related parties during the
reporting period and have not been fulfilled beyond the time limit as of the end of the reporting period.II. Particulars about the non-operating occupation of funds by the controlling
shareholder
□Applicable ?Not applicable
None
III. Illegal provision of guarantees for external parties
□Applicable ?Not applicable
None
IV. Appointment and dismissal of the accounting firm
Whether the semi-annual financial report has been audited
□Yes ?No
The Company's semi-annual report has not been audited.V. Explanation of the Board of Directors on the "modified audit report" of the
accounting firm during the reporting period
□Applicable ?Not applicable
VI. Explanation of the Board of Directors on the "Modified Audit Report" of the
previous year
□Applicable ?Not applicable
VII. Matters relating to bankruptcy and reorganization
□Applicable ?Not applicable
None
29Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
VIII. Litigation matters
Significant litigation and arbitration
□Applicable ?Not applicable
There were no significant litigation or arbitration during the reporting period.Other litigation matters
?Applicable □Not applicable
Amount
involved Whether toGeneral (Ten form Decisions Execution Disclosure Disclosureinformation thousand estimated
Progress and effects of decisions date index
yuan) liabilities
During the
reporting
period the
Company
had 10
litigation
and
arbitration By the end
cases that of the
did not reporting
meet the period
disclosure among the
standards 10 By the end
for major aforementio of the
litigation ned cases reporting
including 5 1 labor period the
labor dispute and The concluded
dispute 1 motor concluded cases were
cases 2 vehicle cases had being
disputes 10129 No traffic no material executed or
over accident adverse completed
/
international liability impact on which had
goods sales dispute had the no
contracts 1 been tried Company. significant
dispute over and closed adverse
liability for and the impact on
harming remaining 8 the
shareholder cases were company.s' interests still being
1 dispute tried by
over equity courts or
transfer arbitration
and 1 institutions.dispute over
liability for
motor
vehicle
traffic
accidents.
30Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
IX. Penalties and rectification
□Applicable ?Not applicable
None
X. Integrity status of the Company and its controlling shareholders and actual
owner
?Applicable □Not applicable
No such cases in the Reporting Period.XI. Major related party transactions
1. Related transactions in connection with daily operation
?Applicable □Not applicable
Related Pricing Amount of Ratio of Approved Settlement Prevailing
Type of Content of Price of Exceeds
parties to Related principles of related party similar transaction method of market price Disclosure Disclosure
related party related party related party approved
the relationship related party transactions transaction quota related party for similar date index
transactions transaction transactions quota
transactions transactions (RMB10000) amount (RMB10000) transactions transactions
One of the
Xinmei
directors of Purchase of Fair pricing
Fontana Settlement
the raw Purchase of with
Holding Agreed- based on Not June 27 Announcement
Company is materials raw reference to 6417.5 4.95% No
(Hong upon price the agreed- applicable 2026 No.: 2026-23
a director of from related materials market
Kong) upon price
SAPO parties prices
Limited
Photoelectric
31628.6
One of the
Kunshan directors of Purchase of Fair pricing
Settlement
Xinmei the raw Purchase of with
Agreed- based on Not June 27 Announcement
Optical Company is materials raw reference to 4816.37 3.71% No
upon price the agreed- applicable 2026 No.: 2026-23
Technology a director of from related materials market
upon price
Co. Ltd. SAPO parties prices
Photoelectric
Tota -- -- 11233.87 -- 31628.6 -- -- -- -- --
Detailed circumstances of large-scale sales returns Not applicable
Give the actual situation in the Reporting Period (if Xinmei Fontana Holding (Hong Kong) Limited is the sub-subsidiary of Hefei Xinmei Materials Technology Co. Ltd. (hereinafter referred to as
any) where an estimate had been made for the total "Hefei Xinmei") and Kunshan Xinmei Optical Technology Co. Ltd. is a subsidiary of Hefei Xinmei. In 2026 the related-party transaction quota
value of continuing related-party transactions by type approved by the Company to be carried out with Hefei Xinmei and its subsidiaries was RMB 316.286 million. The actual related-party
to occur in the Reporting Period transaction amount during the reporting period was RMB 112.3387 million which did not exceed the approved transaction quota.Reasons for significant deviations between transaction
Not applicable
prices and market reference prices (if applicable)
2. Related-party transactions arising from asset acquisition or sale
□Applicable ?Not applicable
None
31Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Related-party transitions with joint investments
□Applicable ?Not applicable
None
4. Credits and liabilities with related parties
?Applicable ?Not applicable
During the reporting period the Company did not have any related-party credit or debt transactions.
5. Transactions with related finance company especially one that is controlled by the
Company
□Applicable ?Not applicable
None
6. Transactions between the financial company controlled by the Company and related parties
□Applicable ?Not applicable
There is no deposit loan credit or other financial business between the financial company controlled by the Company
and related parties.
7. Other significant related-party transactions
□Applicable ?Not applicable
The Company had no other major related party transactions during the reporting period.XII. Major contracts and their performance
1.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.
32Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
II. Other significant contract
?Applicable □Not applicable
Unit:RMB 10000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
Guarantee of the company for its subsidiaries
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
From the
date the
guarantee
agreement
Joint and
takes effect
SAPO March September several
48000 8827.46 to the date No No
Photoelectric 182020 82020 liability
when the
guarantee
actual loan
performance
period
expires
Total of guarantee for Total of actual guarantee for
subsidiaries approved in the 0 subsidiaries in the period -1246.49
period(B1) (B2)
Total balance of guarantees
Total of guarantee for
for subsidiaries as at the
subsidiaries approved at 48000 8827.46
end of the reporting period
period-end(B3)
(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
the Counter- for
Name of the Relevant Date of signing mount of Guarantee implementati
guaranteed guarantee(If Complete associated
Company disclosure happening agreement) guarantee term on or not
amount any) parties
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee quota Total amount of guarantee
approved in the reporting 0 actually incurred in the -1246.49
period(A1+B1+C1) reporting period(A2+B2+C2)
Total guarantee quota
Total balance of guarantees
already approved at the end
48000 at the end of the reporting 8827.46
of the reporting
period (A4+B4+C4)
period(A3+B3+C3)
Total outstanding guarantees (i.e. A4+B4+C4) as a
2.94%
percentage of the Company's net assets
Including:
Amount of guarantee for shareholders actual controller
0
and its associated parties(D)
The debts guarantee amount provided for the Guaranteed
parties whose assets-liability ratio exceed 70% directly or 0
indirectly(E)
33Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Proportion of total amount of guarantee in net assets of the
0
company exceed 50%(F)
Total guarantee Amount of the abovementioned
0
guarantees(D+E+F)
Situations where there is guarantee liability or evidence
indicating the possibility of joint and several repayment
Not applicable
liability for unexpired guarantee contracts during the
reporting period (if any)
Explanation of provision of guarantee to external parties in
Not applicable
violation of the prescribed procedures (if any)
Explanation of the specific situation of the guarantee by the adoption of composite method
None
3. Entrusted wealth management
?Applicable □Not applicable
Unit:RMB 10000
Balance of entrusted
Product category Risk characteristics wealth management during Amount overdue
the reporting period
Bank financial products Medium-low risk 65889.23 0
Publicly offered fund
products Low risk 8950.64 0
Details of high-risk entrusted wealth management where the Company as a single client entrusts a financial institution
for asset management or invests in products with low safety and poor liquidity
□Applicable ?Not applicable
4. Other significant contract
□Applicable ?Not applicable
No such cases in the reporting period.XIII. Registration form for reception survey communication interview and other
activities during the reporting period
?Applicable □Not applicable
Main contents
Reception Reception Reception Type of Reception discussed and Index of basic
time place mode receptionobject object information
information of
provided the survey
Main content:
when the For details
Online Company will please refer to
Value Online communicatio General change its the InvestorApril 20 2026 (www.ir- n on the Others
online.cn) network investors
name Relations
whether there Activity
platform are plans to Record Form
increase (No. 2026-01)
holdings and published by
34Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
cancel shares Shenzhen
the status of Textile
Line 8 and (Holdings)
how to Co. Ltd. on
conduct Cninfo
market value (http://www.cn
management. info.com.cn).Data
provided:
none.XIV. Explanation on other significant events
?Applicable ?Not applicable
Regarding the 2026 Stock Option Incentive Plan
To further establish and strengthen the Company's long-term incentive mechanism attract and retain outstanding
talent fully mobilize the enthusiasm of the Company's core team effectively align the interests of shareholders the
Company and employees and ensure that all parties jointly focus on the Company's long-term development the
Company while fully safeguarding the interests of shareholders and in accordance with the principle of "equity
between returns and contributions" held the Fourth Meeting of the Ninth Board of Directors on August 182026 at
which the following resolutions were adopted: "Resolution on the' 2026 Stock Option Incentive Plan (Draft) 'and its
Summary" "Resolution on the' Assessment and Management Measures for the 2026 Stock Option Incentive Plan '"
and "Resolution on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters
Related to the 2026 Stock Option Incentive Plan." For detailed information please refer to the "2026 Stock Option
Incentive Plan (Draft)" and its "Summary" published by the Company on the Cninfo website (http://www.cninfo.com.cn)
on August 192026..XV. Significant event of subsidiary of the Company
?Applicable □Not applicable
On October 15 2025 the Company held the 45th meeting of the 8th Board of Directors at which the "Proposal on
Investment and Construction of 1.49m-wide Polarizer Production Line Project (Line 8) by a Subsidiary" was deliberated
and approved. It is agreed that the subsidiary Shenzhen SAPO Photoelectric Co. Ltd. based on the market demand
for polarizers and its own development needs would use a combination of its own funds and bank loans with a
planned total investment of approximately RMB 1.334 billion to build a new plant building and supporting facilities by
purchasing land in Pingshan District Shenzhen and to purchase equipment and instruments to construct a 1.49m-
wide LCD and OLED polarizer production line with a designed capacity of approximately 18 million square meters per
year. For details please refer to the "Announcement on Investment and Construction of 1.49m-wide Polarizer
Production Line Project (Line 8) by a Subsidiary" (No. 2025-39) published by the Company on Cninfo
(http://www.cninfo.com.cn) on October 16 2025. As of the end of this reporting period the pile foundation engineering
construction of the project was advancing steadily and the project was about to enter the main building construction
stage of the plant.
35Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VI Share Changes and Shareholder Information
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease(+，-) After the ChangeCapitalization
Issuance of Bonus
Quantity Proportion of public Others Subtotal Quantity Proportion
new share shares
reserve
1.Shares with
conditional 0 0.00% 0 0 0 0 0 0 0.00%
subscription
1.State -owned
00.00%0000000.00%
shares
2. State-owned
00.00%0000000.00%
legal person shares
3.Other domestic
00.00%0000000.00%
shares
Incl:Domestic
00.00%0000000.00%
legal person shares
Domestic
Natural Person 0 0.00% 0 0 0 0 0 0 0.00%
shares
4.Foreign share 0 0.00% 0 0 0 0 0 0 0.00%
Incl:Foreign
00.00%0000000.00%
legal person share
Foreign Natural
00.00%0000000.00%
Person shares
II.Shares with
unconditional 506521849 100.00% 0 0 0 0 0 506521849 100.00%
subscription
1.Common
45702184990.23%0000045702184990.23%
shares in RMB
2.Foreign shares
495000009.77%00000495000009.77%
in domestic market
3. Foreign shares
00.00%0000000.00%
in foreign market
4.Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital
506521849100.00%00000506521849100.00%
shares
Reasons for share changed
□Applicable ?Not applicable
Approval of Change of Shares
□Applicable ?Not applicable
36Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Ownership transfer of share changes
□Applicable ?Not applicable
Progress in implementation of share repurchase
□Applicable ?Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□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
2. Change of shares with limited sales condition
□Applicable ?Not applicable
II. Securities issue and listing
□Applicable ?Not applicable
III. Number of the Company's shareholders and shareholding ratios
In shares
Total number of common Total number of preferred shareholders
shareholders at the end 31210 with restoration of voting rights at the
of the reporting period end of the reporting period (if any) (see
0
Note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders(Excluding shares lent through
refinancing)
Number of Number of share
Name of the Nature of Proportionof shares shares held
Changes in Amount of Amount of pledged/frozen
shareholder shareholder at period - reporting restricted un-restrictedheld(%) end period shares held shares held
State of
share Quantity
Shenzhen
Investment
Holdings State-owned 46.21% 234069436 0 0 234069436
Not
applicable 0
Co. Ltd
Shenzhen
Shenchao
Technology State-owned 3.18% 16129032 0 0 16129032 Not 0
Investment applicable
Co. Ltd.Overseas
HKSCC Legal 2.02% 10216777 4074411 0 10216777 Not
person applicable
0
Sun Domestic Not
Huiming Nature 1.60% 8088853 0 0 8088853 applicable 0
37Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
person
Chen Domestic
Xiaobao Nature 0.77% 3920620 -571300 0 3920620
Not
person applicable
0
Domestic
Su Weipeng Nature 0.71% 3580000 -100 0 3580000 Pledge 3000000
person
Domestic
Li Zengmao Nature 0.61% 3090597 1400 0 3090597 Notapplicable 0person
Domestic
Sun Wenbo Nature 0.41% 2066700 0 0 2066700 Not
person applicable
0
China
Construction
Bank
Corporation
- GF
Quantitative
Multi-factor State-owned 0.25% 1252000 1252000 0 1252000 Not
Flexible applicable
0
Allocation
Mixed
Securities
Investment
Fund
Domestic
Li Jue Nature 0.22% 1137400 -58500 0 1137400 Not
person applicable
0
Strategy investors or
general legal person
becomes top 10
shareholders due to rights None
issued (if applicable)(See
Notes 3)
Among the top 10 common shareholders Shenzhen Investment Holdings Co. Ltd. and
Explanation on Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a concerted party
shareholders participating relationship. Except for the above two entities the Company is temporarily unaware of
in the margin trading whether there is any associated relationship among the other top 10 common shareholders
business nor can it confirm whether they constitute concerted parties as defined in the Measures for
the Administration of the Takeover 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 11)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Name of the shareholder Quantity of unrestricted shares held at the end of the reporting
Share type
period Share type Quantity
Shenzhen Investment
Holdings Co. Ltd 234069436
Common
shares in 234069436
38Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
RMB
Shenzhen Shenchao Common
Technology Investment 16129032 shares in 16129032
Co. Ltd. RMB
Common
HKSCC 10216777 shares in 10216777
RMB
Foreign
Sun Huiming 8088853 shares indomestic 8088853
market
Common
Chen Xiaobao 3920620 shares in 3920620
RMB
Common
Su Weipeng 3580000 shares in 3580000
RMB
Common
Li Zengmao 3090597 shares in 3090597
RMB
Common
Sun Wenbo 2066700 shares in 2066700
RMB
China Construction Bank
Corporation - GF
Quantitative Multi-factor Common
Flexible Allocation Mixed 1252000 shares in 1252000
Securities Investment RMB
Fund
Common
Li Jue 1137400 shares in 1137400
RMB
Explanation of the related
relationship or concerted
action among the top 10 Among the top 10 common shareholders Shenzhen Investment Holdings Co. Ltd. and
shareholders not subject Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute a concerted party
to trading restrictions and relationship. In addition the Company does not know whether there is a related relationship
between the top 10 between the top 10 ordinary shareholders nor does it know whether they are persons acting
shareholders not subject in concert as stipulated in the Administrative Measures for the Acquisition of Listed
to trading restrictions and Companies.the top 10 shareholders
Explanation on
shareholders participating
in the margin trading None
business(if any )(See
Notes 4)
Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders
of unrestricted tradable shares in refinancing business and lending shares
□Applicable ?Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the
previous period due to refinancing lending/repayment
□Applicable ?Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period.
39Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
□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 and senior officers
□Applicable ?Not applicable
There was no change in the shareholdings of the Company's directors and senior officers during the reporting period.For details please refer to the 2025 Annual Report.V. Changes in controlling shareholders or actual controllers
If the Company previously disclosed that the actual controller planned a change of control but it has not been
completed please explain the progress of the change of control.□Applicable ?Not applicable
Changes of controlling shareholder in reporting period
□Applicable ?Not applicable
No changes of controlling shareholder for the Company in reporting period.Changes of controlling shareholder in reporting period
□Applicable ?Not applicable
No changes of controlling shareholder for the Company in reporting period
VI. Preferred shares
□Applicable ?Not applicable
The Company had no preferred shares in the reporting period.
40Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VII Bonds
□Applicable ?Not applicable
41Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Section VIII Financial Statements
I. Audit report
Whether the semi-annual report has been audited
□Yes ?No
The Company's semi-annual financial report has not been audited.II. Financial statements
The unit in the notes to the financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co. Ltd.June 30 2026
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Current asset:
Monetary funds 517854162.69 449964450.38
2. Transactional financial assets 748398696.32 736341286.18
Notes receivable 33936675.37 85980246.52
4. Account receivable 817955456.71 761807949.52
Financings receivable 1507659.34 22584820.72
6.Prepayments 36565096.13 29141210.57
Other receivable 4783576.95 4324973.02
Including: Interest receivable 0.00 0.00
Dividend receivable 893982.69 0.00
8. Inventories 970224264.98 884642355.51
Including: data resources 0.00 0.00
9. Other current assets 50103302.16 85649096.62
Total of current assets 3181328890.65 3060436389.04
Non-current assets:
17. Long-term equity investment 104030653.89 107583586.91
Investment in other equity
instruments 159261600.00 159261600.00
12. Investment real estate 100950528.65 105730781.63
Fixed asset 1541311409.66 1657314603.81
14. Construction in progress 204595310.01 179954389.78
15. Right to use assets 16417697.66 16894843.60
Intangible asset 79112514.87 31224598.20
42Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
17. Goodwill 0.00 0.00
18. Long-term deferred expenses 8125832.34 7030847.01
Deferred income tax assets 58056027.64 55777290.89
20 .Other non-current assets 97041969.73 37086785.90
Total of non-current assets 2368903544.45 2357859327.73
Total of assets 5550232435.10 5418295716.77
Current liabilities
Derivative financial liabilities 572148.11 4071800.19
23.Notes payable 14734317.72 0.00
Accounts payable 479599097.76 344656835.89
25.Advance account 781506.37 769227.07
26.Contract liabilities 2650257.63 3132419.01
27.Payable Employee wage 41670640.99 52647315.74
28.Tax Payable 10226046.87 5806818.55
Other payables 142982024.31 159826234.73
Including:Interest payable 0.00 0.00
Dividend payable 0.00 0.00
30. Non-current liabilities due
within 1 year 77244911.71 65964666.28
Other current liabilities 63264425.58 88386795.27
Total of current liability 833725377.05 725262112.73
Non-current liabilities:
Long-term loans 242621163.05 261718054.81
33. Lease liabilities 10705698.47 10415997.17
34. Deferred income 73905614.03 83469949.03
Deferred income tax assets 48006838.91 47064430.16
Total non-current liabilities 375239314.46 402668431.17
Total liabilities 1208964691.51 1127930543.90
Owners' equity:
35.Stock capital 506521849.00 506521849.00
36. Capital reserves 1961599824.63 1961599824.63
37. Other comprehensive income 102271832.32 102271832.32
38. Special reserves 106805904.93 106805904.93
39. Retained profits 328983292.42 302520158.30
Total equity attributable to owners of
the parent company 3006182703.30 2979719569.18
Minor shareholders’ equity 1335085040.29 1310645603.69
Total owners' equity 4341267743.59 4290365172.87
Total liabilities and owners' equity 5550232435.10 5418295716.77
Legal representative: LI Gang Principal Chief Finance Officer: LIU Yu Chief Accountant: LI Zhenyu
2. Balance sheet of the parent company
In RMB
43Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Rewards for the key management
personnel Items Ending balance Beginning balance
Current asset:
Monetary funds 12374641.67 24473234.70
2. Transactional financial assets 748398696.32 736341286.18
4. Account receivable 7594665.37 8714374.34
6.Prepayments 284500.00 149618.73
Other receivable 1549862.15 2014545.65
Including:Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
8. Inventories 45442.05 46562.05
Total of current assets 770247807.56 771739621.65
Non-current assets:
17. Long-term equity investment 2029892634.56 2033445567.58
Investment in other equity
instruments 146548800.00 146548800.00
12. Investment real estate 82656996.17 86463450.62
Fixed asset 1645919.94 1910229.22
15. Right to use assets 2357096.92 2498988.67
Intangible asset 221276.98 48270.75
18. Long-term deferred expenses 5324141.37 4756358.34
20 .Other non-current assets 25760086.27 25760086.27
Total of non-current assets 2294406952.21 2301431751.45
Total of assets 3064654759.77 3073171373.10
Current liabilities
Accounts payable 194131.97 194131.97
25.Advance account 540673.07 540673.07
27.Payable Employee wage 16848569.01 19879990.77
28.Tax Payable 5711116.37 4337326.82
Other payables 94297429.11 93730387.66
Including:Interest payable 0.00 0.00
Dividend payable 0.00 0.00
30. Non-current liabilities due
within 1 year 463520.07 478582.75
Total of current liability 118055439.60 119161093.04
Non-current liabilities:
33. Lease liabilities 1937050.66 2070057.60
Deferred income tax assets 33500105.11 32534099.01
Other non-current liabilities
Total non-current liabilities 35437155.77 34604156.61
Total liabilities 153492595.37 153765249.65
44Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Owners' equity:
35.Stock capital 506521849.00 506521849.00
36. Capital reserves 1577392975.96 1577392975.96
37. Other comprehensive income 93862232.32 93862232.32
38. Special reserves 106805904.93 106805904.93
39. Retained profits 626579202.19 634823161.24
Total owners' equity 2911162164.40 2919406123.45
Total liabilities and owners' equity 3064654759.77 3073171373.10
3. Consolidated income statement
In RMB
Rewards for the key management
personnel Items Half year period of 2026 Half year period of 2025
I. Total operating revenue 1588723198.14 1600481626.31
Including: operating revenue 1588723198.14 1600481626.31
II. Total operating costs 1450409689.38 1519243714.80
Including: operating costs 1322616178.72 1362512734.09
41. Taxes and surcharges 5723129.90 5659061.80
42. Sales expenses 16715574.28 16031119.28
43. Management cost 60903745.33 59632564.54
44. R&D expenses 49414846.76 52739746.19
45. Financial expenses -4963785.61 22668488.90
Including: Interest
expenses 2863362.87 3666950.38
Interest income 1433948.01 2493076.60
Add:Other income 17367048.85 18162062.42
Investment income ("-" for
losses) -3539905.76 130107.09
Including: investment
income from associates and joint -3311433.02 -3645599.07
ventures
Financial assets
measured at amortized cost cease to 0.00 0.00
be recognized as income
Gains from changes in fair
value ("-" for losses) 6593057.37 5911007.63
Credit impairment losses ("-"
for losses) 275783.04 815027.65
Assets impairment losses ("-"
for loss) -79106067.18 -55273530.83
Gains from disposal of assets
("-" for losses) 0.00 1163586.44
III. Operating profit ("-" for losses) 79903425.08 52146171.91
Add:Non-Operating income 175972.60 3104116.81
Less:Non-Operating expenses 774974.25 57900.79
IV. Total profits ("-" for total loss) 79304423.43 55192387.93
45Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Less:Income tax expenses 4088822.46 7663966.35
V. Net profit ("-" for net losses) 75215600.97 47528421.58
(I) Classified by operating
sustainability
1. Net profit from continued
operation ("-" for net losses) 75215600.97 47528421.58
2. Net profit from discontinued
operations ("-" for net losses) 0.00 0.00
(II) Classified by ownership
1. Net profit attributable to
shareholders of the parent company 50776164.37 35234765.52
("-" for net losses)
2. Minority interest income ("-"
for net losses) 24439436.60 12293656.06
VI. Other comprehensive income net
of tax 0.00 0.00
Other comprehensive income net
of tax attributable to owners of 0.00 0.00
parent company
(I) Other comprehensive income
that cannot be reclassified into profit 0.00 0.00
or loss later
1.Re-measurement of defined
benefit plans of changes in net debt 0.00 0.00
or net assets
2.Other comprehensive
income under the equity method
investee can not be reclassified into 0.00 0.00
profit or loss.
3. Changes in the fair value of
investments in other equity 0.00 0.00
instruments
4. Changes in the fair value of
the company’s credit risks 0.00 0.00
5.Other 0.00 0.00
(II) Other comprehensive income
that will be reclassified into profit or 0.00 0.00
loss
1.Other comprehensive
income under the equity method
investee can be reclassified into 0.00 0.00
profit or loss.
2. Changes in the fair value of
investments in other debt obligations 0.00 0.00
3. Other comprehensive
income arising from the 0.00 0.00
reclassification of financial assets
4.Allowance for credit
impairments in investments in other 0.00 0.00
debt obligations
5. Reserve for cash flows 0.00 0.00
6.Translation differences in
currency financial statements 0.00 0.00
7.Other 0.00 0.00
Net of profit of other
comprehensive income attributable to 0.00 0.00
46Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Minority shareholders’ equity
VII. Total comprehensive income 75215600.97 47528421.58
Total comprehensive income
attributable to the owner of the parent 50776164.37 35234765.52
company
Total comprehensive income
attributable minority shareholders 24439436.60 12293656.06
VIII. Earnings per share:
(I) Basic earnings per share 0.1002 0.0696
(II) Diluted earnings per share 0.1002 0.0696
In case of any business combination under the same control in the current period the net profit realized by the
combinee before the combination was RMB0.00 and the net profit realized by the combinee in the previous period
was RMB 0.00.Legal representative: LI Gang Principal Chief Finance Officer: LIU Yu Chief Accountant: LI Zhenyu
4. Income statement of the parent company
In RMB
Rewards for the key management
personnel Items Half year period of 2026 Half year period of 2025
I.Operating revenue 37217931.31 38597362.56
Less:Operating cost 5231095.08 5734623.16
41. Taxes and surcharges 1507928.38 1514685.13
42. Sales expenses 26021.44 9356.70
43. Management cost 20663097.22 18677086.91
45. Financial expenses -57697.99 -257485.04
Including:Interest expenses 43575.48 2831.38
Interest income 102386.80 290763.85
Add:Other income 63874.41 100758.85
Investment income ("-" for
losses) 5100847.88 4647607.09
Including: investment
income from associates and joint -3311433.02 -3645599.07
ventures
Gains from
derecognition of financial assets
measured by amortized costs ("-" for 0.00 0.00
losses)
Gains from changes in fair
value ("-" for losses) 7165205.48 5127945.21
Credit impairment losses ("-"
for losses) 127072.57 -123846.10
II. Operating profit ("-" for losses) 22304487.52 22671560.75
Add:Non-Operating income 0.00 0.05
Less:Non-Operating expenses 304.05 27285.06
III. Total profit ("-" for total loss) 22304183.47 22644275.74
Less:Income tax expenses 6235112.27 5598253.84
IV. Net profit ("-" for net losses) 16069071.20 17046021.90
47Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(I) Net profit from continued
operation ("-" for net losses) 16069071.20 17046021.90
(II) Net profit from discontinued
operation ("-" for net losses) 0.00 0.00
V. Net after-tax of other
comprehensive income 0.00 0.00
(I) Other comprehensive income
that cannot be reclassified into profit 0.00 0.00
or loss later
1.Re-measurement of defined
benefit plans of changes in net debt 0.00 0.00
or net assets
2.Other comprehensive
income under the equity method
investee can not be reclassified into 0.00 0.00
profit or loss.
3. Changes in the fair value of
investments in other equity 0.00 0.00
instruments
4. Changes in the fair value of
the company’s credit risks 0.00 0.00
5.Other 0.00 0.00
(II) Other comprehensive income
that will be reclassified into profit or 0.00 0.00
loss
1.Other comprehensive
income under the equity method
investee can be reclassified into 0.00 0.00
profit or loss.
2. Changes in the fair value of
investments in other debt obligations 0.00 0.00
3. Other comprehensive
income arising from the 0.00 0.00
reclassification of financial assets
4.Allowance for credit
impairments in investments in other 0.00 0.00
debt obligations
5. Reserve for cash flows 0.00 0.00
6.Translation differences in
currency financial statements 0.00 0.00
7.Other 0.00 0.00
VI. Total comprehensive income 16069071.20 17046021.90
5. Consolidated statement of cash flows
In RMB
Rewards for the key management
personnel Items Half year period of 2026 Half year period of 2025
I.Cash flows from operating activities
Cash received from sales of goods
or rending of services 1586002206.64 1671434675.35
Tax returned 39383653.63 0.00
Other cash received relevant to
operating activities 25839494.09 68058342.69
Sub-total of cash inflow 1651225354.36 1739493018.04
48Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Cash paid for purchasing of
merchandise and services 1172995258.29 1218647653.85
Cash paid to staffs or paid for
staffs 139645251.08 127820808.26
Taxes paid 29015015.83 27343241.72
Other cash paid related to
operating activities 56638784.81 40346993.22
Sub-total of cash outflow from
business activities 1398294310.01 1414158697.05
Net cash flows arising from operating
activities 252931044.35 325334320.99
II. Cash flow generated by investing
Cash received from investment
retrieving 0.00 0.00
Cash received as investment gains 4111576.24 8334676.03
Net cash retrieved from disposal of
fixed assets intangible assets and 40694.10 3431771.50
other long-term assets
Net cash received from disposal of
subsidiaries or other operational units 0.00 0.00
Cash received in connection with
significant investment activities 215577600.00 518000000.00
Sub-total of cash inflow due to
investment activities 219729870.34 529766447.53
Cash paid to acquire and construct
fixed assets intangible assets and 149255811.29 6414300.56
other long-term assets
Cash paid as investment 0.00 0.00
Net increase in pledge loans 0.00 0.00
Net cash received from
subsidiaries and other operational 0.00 0.00
units
Cash paid related to other
investment activities 228984136.52 500000000.00
Sub-total of cash outflow due to
investment activities 378239947.81 506414300.56
Net cash flow generated by
investment -158510077.47 23352146.97
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Including: Cash received as
investment from minor shareholders 0.00 0.00
Cash received as loans 24230052.00 0.00
Other financing –related ash
received 0.00 0.00
Sub-total of cash inflow from
financing activities 24230052.00 0.00
Cash to repay debts 30736765.00 20736765.00
Cash paid as dividend profit or
interests 28608928.75 39283617.02
Including: dividends and profit paid
to minority shareholders by 0.00 0.00
subsidiaries
Cash paid related with financing 5564480.21 6983290.34
49Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
activities
Sub-total of cash outflow due to
financing activities 64910173.96 67003672.36
Net cash flow generated by financing -40680121.96 -67003672.36
IV. Influence of exchange rate
alternation on cash and cash -1103841.83 -6543513.79
equivalents
V. Net increase in cash equivalents 52637003.09 275139281.81
Plus: beginning balance of cash
equivalents 449257554.81 302084839.35
VI. Ending balance of cash
equivalents 501894557.90 577224121.16
6. The statement of cash flows of the parent company
In RMB
Rewards for the key management
personnel Items Half year period of 2026 Half year period of 2025
I.Cash flows from operating activities
Cash received from sales of goods
or rending of services 38133388.00 40571767.79
Tax returned 0.00 0.00
Other cash received relevant to
operating activities 7445599.85 2078250.77
Sub-total of cash inflow 45578987.85 42650018.56
Cash paid for purchasing of
merchandise and services 1659030.37 1904909.90
Cash paid to staffs or paid for
staffs 23140568.38 19685814.75
Taxes paid 7642890.25 9256504.29
Other cash paid related to
operating activities 5018616.26 3271796.24
Sub-total of cash outflow from
business activities 37461105.26 34119025.18
Net cash flows arising from operating
activities 8117882.59 8530993.38
II. Cash flow generated by investing
Cash received from investment
retrieving 0.00 0.00
Cash received as investment gains 6311576.24 9852176.03
Net cash retrieved from disposal of
fixed assets intangible assets and 0.00 0.00
other long-term assets
Net cash received from disposal of
subsidiaries or other operational units 0.00 0.00
Cash received in connection with
significant investment activities 219000000.00 527000000.00
Sub-total of cash inflow due to
investment activities 225311576.24 536852176.03
Cash paid to acquire and construct
fixed assets intangible assets and 945212.97 640844.32
other long-term assets
Cash paid as investment 0.00 0.00
Net cash received from
subsidiaries and other operational 0.00 0.00
50Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
units
Cash paid related to other
investment activities 220000000.00 500000000.00
Sub-total of cash outflow due to
investment activities 220945212.97 500640844.32
Net cash flow generated by
investment 4366363.27 36211331.71
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Cash received as loans 0.00 0.00
Other financing –related ash
received 0.00 0.00
Sub-total of cash inflow from
financing activities 0.00 0.00
Cash to repay debts 0.00 0.00
Cash paid as dividend profit or
interests 24313030.25 35963029.09
Cash paid related with financing
activities 265593.59 0.00
Sub-total of cash outflow due to
financing activities 24578623.84 35963029.09
Net cash flow generated by financing -24578623.84 -35963029.09
IV. Influence of exchange rate
alternation on cash and cash -4215.05 -1250.15
equivalents
V. Net increase in cash equivalents -12098593.03 8778045.85
Plus: beginning balance of cash
equivalents 24473234.70 13630974.26
VI. Ending balance of cash
equivalents 12374641.67 22409020.11
51Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
7. Consolidated statements of changes in owners' equity
The current period
In RMB
Half year period of 2026
Rewards for the key management Equity attributable to owners of the parent company
personnel Items 36. Capital 37. Other
Minor shareholders’
Total owners' equity
35.Stock capita 38. Special equityreserves comprehensive 39. Retained profits Subtotalincome reserves
I. Ending balance last year 506521849.00 1961599824.63 102271832.32 106805904.93 302520158.30 2979719569.18 1310645603.69 4290365172.87
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning
506521849.001961599824.63102271832.32106805904.93302520158.302979719569.181310645603.694290365172.87
of this year
III. Changes in amount for the current
0.000.000.000.0026463134.1226463134.1224439436.6050902570.72
period ("-" for decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 50776164.37 50776164.37 24439436.60 75215600.97
(II) Capital contributed or reduced by
0.000.000.000.000.000.000.000.00
owners
1. Ordinary shares contributed by
0.000.000.000.000.000.000.000.00
owners
2. Capital invested by the holders of
0.000.000.000.000.000.000.000.00
other equity instruments
3. Amounts of share-based payments
0.000.000.000.000.000.000.000.00
recognized in owners' equity
4．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -24313030.25 -24313030.25 0.00 -24313030.25
1.Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Withdrawal of general risk reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Profit distributed to owners (or
0.000.000.000.00-24313030.25-24313030.250.00-24313030.25
shareholders)
52Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserves into
0.000.000.000.000.000.000.000.00
paid-in capital (or share capital)
2. Conversion of surplus reserves into
0.000.000.000.000.000.000.000.00
paid-in capital (or share capital)
3．Making up losses by surplus
0.000.000.000.000.000.000.000.00
reserves.
4. Changes in benefit plans transferred
0.000.000.000.000.000.000.000.00
to retained earnings
5．Other comprehensive income carry-
0.000.000.000.000.000.000.000.00
over retained earnings
6．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
506521849.001961599824.63102271832.32106805904.93328983292.423006182703.301335085040.294341267743.59
period
amount of prior year
In RMB
Half year period of 2026
Rewards for the key management Equity attributable to owners of the parent company
personnel Items Minor shareholders’
36. Capital 37. Other 38. Special 39. Retained Total owners' equity35.Stock capita reserves comprehensive
equity
income reserves profits
Subtotal
I. Ending balance last year 506521849.00 1961599824.63 106877807.32 104262315.64 272608113.66 2951869910.25 1283450723.88 4235320634.13
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning 506521849.00 1961599824.63 106877807.32 104262315.64 272608113.66 2951869910.25 1283450723.88 4235320634.13
53Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
of this year
III. Changes in amount for the current
0.000.000.000.00-728263.57-728263.5712293656.0611565392.49
period ("-" for decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 35234765.52 35234765.52 12293656.06 47528421.58
(II) Capital contributed or reduced by
0.000.000.000.000.000.000.000.00
owners
1. Ordinary shares contributed by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Capital invested by the holders of other
0.000.000.000.000.000.000.000.00
equity instruments
3. Amounts of share-based payments
0.000.000.000.000.000.000.000.00
recognized in owners' equity
4．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09 0.00 -35963029.09
1.Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Withdrawal of general risk reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Profit distributed to owners (or
0.000.000.000.00-35963029.09-35963029.090.00-35963029.09
shareholders)
4．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserves into
0.000.000.000.000.000.000.000.00
paid-in capital (or share capital)
2. Conversion of surplus reserves into
0.000.000.000.000.000.000.000.00
paid-in capital (or share capital)
3．Making up losses by surplus reserves. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Changes in benefit plans transferred to
0.000.000.000.000.000.000.000.00
retained earnings
5．Other comprehensive income carry-
0.000.000.000.000.000.000.000.00
over retained earnings
6．Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
54Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current
506521849.001961599824.63106877807.32104262315.64271879850.092951141646.681295744379.944246886026.62
period
8. Statement of changes in owner's equity of parent company
The current period
In RMB
Half year period of 2026
Rewards for the key management personnel Items 37. Other
35.Stock capital 36. Capital reserves comprehensive 38. Special reserves 39. Retained profits Total owners' equity
income
I. Ending balance last year 506521849.00 1577392975.96 93862232.32 106805904.93 634823161.24 2919406123.45
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning of this year 506521849.00 1577392975.96 93862232.32 106805904.93 634823161.24 2919406123.45
III. Changes in amount for the current period ("-" for
0.000.000.000.00-8243959.05-8243959.05
decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 16069071.20 16069071.20
(II) Capital contributed or reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00
1. Ordinary shares contributed by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Capital invested by the holders of other equity
0.000.000.000.000.000.00
instruments
3. Amounts of share-based payments recognized in owners'
0.000.000.000.000.000.00
equity
4．Other 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -24313030.25 -24313030.25
1.Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2. Profit distributed to owners (or shareholders) 0.00 0.00 0.00 0.00 -24313030.25 -24313030.25
55Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3．Other 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserves into paid-in capital (or
0.000.000.000.000.000.00
share capital)
2. Conversion of surplus reserves into paid-in capital (or
0.000.000.000.000.000.00
share capital)
3．Making up losses by surplus reserves. 0.00 0.00 0.00 0.00 0.00 0.00
4. Changes in benefit plans transferred to retained earnings 0.00 0.00 0.00 0.00 0.00 0.00
5．Other comprehensive income carry-over retained
0.000.000.000.000.000.00
earnings
6．Other 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current period 506521849.00 1577392975.96 93862232.32 106805904.93 626579202.19 2911162164.40
Amounts for the Prior Year
In RMB
Half year period of 2025
Rewards for the key management personnel Items 37. Other
35.Stock capital 36. Capital reserves comprehensive 38. Special reserves 39. Retained profits Total owners' equity
income
I. Ending balance last year 506521849.00 1577392975.96 98116532.32 104262315.64 647893886.69 2934187559.61
Add: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Beginning balance as at the beginning of this year 506521849.00 1577392975.96 98116532.32 104262315.64 647893886.69 2934187559.61
III. Changes in amount for the current period ("-" for 0.00 0.00 0.00 0.00 -18917007.19 -18917007.19
56Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
decreases)
(I) Total comprehensive income 0.00 0.00 0.00 0.00 17046021.90 17046021.90
(II) Capital contributed or reduced by owners 0.00 0.00 0.00 0.00 0.00 0.00
1. Ordinary shares contributed by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Capital invested by the holders of other equity
0.000.000.000.000.000.00
instruments
3. Amounts of share-based payments recognized in
0.000.000.000.000.000.00
owners' equity
4．Other 0.00 0.00 0.00 0.00 0.00 0.00
(III) Profit distribution 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09
1.Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2. Profit distributed to owners (or shareholders) 0.00 0.00 0.00 0.00 -35963029.09 -35963029.09
3．Other 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Internal transfer of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Conversion of capital reserves into paid-in capital (or
0.000.000.000.000.000.00
share capital)
2. Conversion of surplus reserves into paid-in capital (or
0.000.000.000.000.000.00
share capital)
3．Making up losses by surplus reserves. 0.00 0.00 0.00 0.00 0.00 0.00
4. Changes in benefit plans transferred to retained earnings 0.00 0.00 0.00 0.00 0.00 0.00
5．Other comprehensive income carry-over retained
0.000.000.000.000.000.00
earnings
6．Other 0.00 0.00 0.00 0.00 0.00 0.00
(V) Special reserves 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal in the current period 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount used in the current period 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance as at the end of the current period 506521849.00 1577392975.96 98116532.32 104262315.64 628976879.50 2915270552.42
57Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
III. Company profile
1. Company profile
Shenzhen Textile (Holdings) Co. Ltd. (hereinafter referred to as "the Company") is a joint stock limited company
registered in Guangdong Province. The Company was listed on Shenzhen Stock Exchange in August 1994. The
Company has publicly issued RMB ordinary shares (A shares) and domestically listed foreign shares (B shares) to the
domestic and foreign public respectively and listed for trading.Headquartered in Shenzhen Guangdong Province the main business of the Company and its subsidiaries
(hereinafter referred to as "the Group") includes the research and development production and marketing of polarizers
for liquid crystal display as well as property management business mainly located in the prosperous commercial area
of Shenzhen.
2. The date of approval of the financial statements
The financial statements have been authorized for issuance of Board of Directors of the Company on [August 24
2026].
IV. Basis for preparation of financial statements
1. Basis for preparation
The Group implements the accounting standards for enterprises and related regulations promulgated by the
Ministry of Finance. In addition the Group also discloses relevant financial information in accordance with the No. 15
Compilation Rules for Disclosure of Information by Companies of Issuing Securities to the Public-General Provisions
for Financial Reporting (2023 Revision).
2. Going concern
The Group evaluated its ability to continue as a going concern for the 12 months from 30 June 2026 and found no
matters or circumstances that raised significant doubts about its ability to continue as a going concern. Accordingly
the present financial report has been prepared on the basis of going concern assumptions.
3. Accounting basis and pricing principle
The Group's accounting is based on the accrual basis. Except for certain financial instruments-which are
measured at fair value the financial report uses the historical cost as the measurement basis. If the asset is impaired
the corresponding impairment provision will be made in accordance with the relevant regulations.Under historical cost measurement an asset is measured at the fair value of the amount of cash or cash
equivalents paid or the consideration paid at the time of acquisition. Liabilities are measured by the amount of money
or assets actually received as a result of the present obligation is assumed or the contractual amount of the present
obligation is incurred or the amount of cash or cash equivalents expected to be paid in the ordinary course of life to
repay the liability.Fair value is the price that market participants shall have to receive for the sale of an asset or shall to pay for a
transfer of a liability in an orderly transaction that occurs on the measurement date. Whether the fair value is
58Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
observable or estimated using valuation techniques the fair value measured and disclosed in this financial report is
determined on that basis.For financial assets where the transaction price is taken as the fair value at initial recognition and valuation
techniques involving unobservable input value are used in the subsequent measurement of fair value the valuation
techniques are corrected during the valuation process to make the initial recognition result determined by the valuation
techniques equal to the transaction price.Fair value measurement is divided into three levels as to the observability of fair value inputs and the importance
of such inputs to fair value measurement as a value inputs and the importance of such inputs to fair value
measurement as a whole:
The first level of input is the unadjusted quotation of the same asset or liability in an active market that can
be obtained at the measurement date.The second-level input value is the input value that is directly or indirectly observable for the underlying
asset or liability in addition to the first-level input.The third level input value is the unobservable input value of the underlying asset or liability.V. Significant accounting policies and accounting estimates
Tips of specific accounting policies and accounting estimates:
None
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company's consolidated and parent company's financial
position as at June 30 2026 and the consolidated and parent company's operating results changes in consolidated
and parent company's shareholders' equity and consolidated and parent company's cash flows for 2026 H1.
2. Accounting period
The Group's fiscal year is the Gregorian calendar year i.e. from January 1 to December 31 of each year.
3. Operating cycle
The business cycle is the period from the time an enterprise purchases an asset for processing to the realization
of cash or cash equivalents. The Company's business cycle is 12 months.
4. Recording currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate and the Company and its domestic subsidiaries use RMB as the base accounting currency. The overseas
subsidiaries of the Company determine RMB as their base accounting currency according to the currency of the main
economic environment in which they operate. The currency used by the Company in the preparation of this financial
report is RMB.
59Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
5. Determination methods and selection basis for materiality threshold
?Applicable □Not applicable
Rewards for the key management personnel Items Material criteria
Receivables for a significant single provision for bad The proportion of individual item exceeds 0.5% of total
debts assets
Important accounts receivable for the recovery or reversal The proportion of individual item exceeds 0.5% of total
of bad debt reserves assets
Significant prepayments that are more than 1 year old The proportion of individual item exceeds 0.5% of totalassets
The balance of a single construction in progress accounts
Significant construction in progress project for over 10% of the total balance of construction inprogress and the amount is more than RMB
100000000.00.
Important accounts payable advances from customers
contract liabilities and other payables with aging over 1 The proportion of individual item exceeds 0.5% of total
year assets
Cash received related to other investment activities Amount exceeding RMB 50 million yuan
Payments of cash in connection with significant
investment activities Amount exceeding RMB 50 million yuan
Significant non-wholly owned subsidiary More than 10% of total assets or total revenues or totalprofits
Significant joint ventures or associates Net assets account for more than 5%
6. Accounting treatments for business combinations under common control and those not
under common control
Business combinations are divided into business combinations under common control and business combinations
under non-common control.
6.1 Business combinations under common control
The enterprises participating in the merger are ultimately controlled by the same party or multiple parties before
and after the merger and the control is not temporary therefore it is a business combination under the common
control.The assets and liabilities obtained in the business combination are measured at their book value as recorded in
the consolidated financial statements of the ultimate controller on the combination date. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger consideration paid
is adjusted for the equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to
be offset. Direct carrying value on the consolidated party at the date of consolidation. The difference between the
carrying amount of net assets acquired by the merging party and the carrying amount of the merger consideration paid
is adjusted for the equity premium in the capital reserve or for retained earnings if the equity premium is insufficient to
be offset.Direct expenses incurred in connection with the business combination are recognized in profit or loss for the
period when incurred.
6.2 Business combinations and goodwill under non-common control
60Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The enterprises participating in a merger are not ultimately controlled by the same party or multiple parties before
and after the merger therefore it is a business combination under non-common control.Consolidation cost is the fair value of assets paid liabilities incurred or assumed and equity instruments issued to
gain control of the acquired party by the purchaser. Intermediary fees such as auditing legal services valuation
consulting and other related management expenses incurred by the purchaser for the business combination are
recognized in the profit or loss of the period when incurred.Any identifiable assets liabilities and contingent liabilities of the acquiree that meet the recognition criteria and
are obtained by the acquirer in the combination are measured at fair value on the acquisition date.If the combination cost exceeds the acquiree's fair value share of net identifiable assets obtained this difference is
recognized as goodwill and initially measured at cost. If the cost of the merger is less than the fair value share of the
acquiree's identifiable net assets acquired in the merger the fair value of the acquired acquiree's identifiable assets
liabilities and contingent liabilities and the measurement of the cost of the merger are first reviewed and if the
consolidated cost after review is still less than the fair value share of the acquiree's identifiable net assets share
acquired in the merger which shall be included in profit or loss for the period occurred.Goodwill resulting from business combinations is presented separately in the consolidated financial statement and
measured at cost less accumulated impairment provisions.
7. Criteria for determining control and preparation methods for consolidated financial
statements
7.1 Criteria for determining control
Control means that the investor has the power over the investee enjoys variable returns by participating in the
related activities of the investee and has the ability to influence the amount of returns by using the power over the
investee. The Group will reassess the relevant elements involved in the above definition of controls as a result of
changes in the relevant facts and circumstances.
7.2. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis.The merger of subsidiaries begins when the Group acquires control of the subsidiary and terminates when the
Group loses control of the subsidiary.For subsidiaries disposed of by the Group the results of operations and cash flows prior to the date of disposal
(the date of loss of control) have been duly included in the consolidated statement of income and the consolidated
statement of cash flows.For subsidiaries acquired through a business combination under non-common control the results of operations
and cash flows from the date of purchase (the date of acquisition of control) have been appropriately included in the
consolidated statement of income and the consolidated statement of cash flows.
61Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
For subsidiaries acquired through a business combination under common control regardless of when the
business combination takes place in any point of the reporting period the subsidiary shall be deemed to be included in
the scope of the Group's consolidation on the date on which the subsidiary is under the control of the ultimate
controlling party the results of operations and cash flows from the beginning of the earliest period of the reporting
period are duly included in the consolidated income statement and the consolidated statement of cash flows.The principal accounting policies and the accounting periods adopted by the subsidiaries are determined in
accordance with the accounting policies and accounting periods uniformly prescribed by the Company.Any effects on the consolidated financial statements from intercompany transactions between the Company and
its subsidiaries or among the subsidiaries themselves are eliminated upon consolidation.The share of owners' equity of a subsidiary not attributable to the parent company is presented as minority equity
and listed as "minority equity" under the owners' equity item in the consolidated balance sheet. The shares of the
subsidiary's net profit or loss for the period that belongs to minority interests is shown under the item "minority profit
and loss" under the net profit item in the consolidated statement of income.The minority shareholders’ share of the subsidiary's losses exceeds the minority shareholders’ share of ownership
interest enjoyed in the beginning of the period and its balance is still offset by the minority shareholders’ equity.For transactions that purchase minority stakes in a subsidiary or dispose of part of the equity investment without
losing control of the subsidiary it’s accounted as equity transactions and the carrying amount of the owner's interest
and minority interest attributable to the parent company is adjusted to reflect their change in the relevant interest in the
subsidiary. The difference between the adjustment of minority interests and the fair value of the consideration
paid/received is adjusted to the capital reserve and if the capital reserve is insufficient to offset it then it’s adjusted to
the retained earnings. 8. Joint venture arrangement
8. Classification of joint venture arrangements and accounting treatments for joint operations
Joint venture arrangements are classified as either joint operations or joint ventures based on the rights and
obligations of the parties—determined by factors such as the arrangement's structure legal form and contractual
terms. A joint operation is a joint arrangement in which the parties have rights to the related assets and obligations for
the related liabilities. Commonly-operated refers to a joint arrangement in which the joint venture parties enjoy the
assets related to the arrangement and bear the liabilities related to the arrangement. The jointly-operated is a joint
arrangement in which the joint venture party has rights only to the net assets of the joint arrangement.The Group's investments in joint ventures are accounted for under the equity method. For details please refer to
"17 Long-term equity investment".
9. Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used to pay at any time. Cash equivalents refer to
investments held by the Group for a short period (generally within three months from the date of purchase) highly
liquid easily convertible into a known amount of cash and with little risk of change in value.
62Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
10. Foreign currency transactions and translation of foreign currency statements
10.1 Foreign currency transactions
Foreign currency transactions are initially recognized at an exchange rate similar to the spot exchange rate on the
date of the transaction and the exchange rate similar to the spot rate on the date of the transaction is determined in a
systematic and reasonable manner.At each balance sheet date foreign currency monetary items are translated into RMB at the spot rate on that date.Any exchange differences arising from changes in the spot exchange rate (compared to the rate at initial recognition or
the previous balance sheet date) are recognized in current profit or loss except for: (1) exchange differences on
foreign-currency-specific borrowings that qualify for capitalization which are capitalized as part of the cost of the
related asset during the capitalization period; (2) The exchange difference of hedging instruments for hedging in order
to avoid foreign exchange risk is treated according to the hedge accounting method; The exchange difference results
from changes in other carrying balances other than amortized cost for monetary items classified as measured at fair
value and changes in which are included in other comprehensive income it shall be recognized as profit or loss for the
period.Where the preparation of the consolidated financial statement involves overseas operations if there are foreign
currency monetary items that substantially constitute net investment in overseas operations the exchange difference
arising from exchange rate changes is included in the "foreign currency statement translation difference" item; included
in other comprehensive income When disposing of overseas operations it is included in the profit or loss of the period
of disposal.Foreign currency non-monetary items measured at historical cost are still measured at the base currency amount
translated at the spot exchange rate on the date of the transaction. For foreign currency non-monetary items measured
at fair value the spot exchange rate on the date the fair value is determined is used for translation. Any difference
between the translated amount in recording currency and the original currency is treated as a fair value change
(including fluctuation in exchange rate) and is recognized in current profit or loss or other comprehensive income as
appropriate.
10.2 Translation of foreign-currency financial statements
For the purpose of preparing consolidated financial statement foreign currency financial statements for overseas
operations are converted into RMB statements in the following manner: all assets and liabilities in the balance sheet
are converted at the spot exchange rate at the balance sheet date; Shareholders' equity items are converted at the
spot exchange rate at the time of incurrence; All items in the income statement and items reflecting the amount of
profit distribution are converted at an exchange rate similar to the spot exchange rate on the date of the transaction;
The difference between the converted asset items and the total of liability items and shareholders' equity items is
recognized as other comprehensive income and included in shareholders' equity.Foreign currency cash flows and cash flows of overseas subsidiaries are translated using exchange rates similar
to the spot exchange rate on the occurrence date of cash flow and the impact amount of exchange rate changes on
cash and cash equivalents is used as a reconciliation item and is shown separately in the statement of cash flows as
"Impact of exchange rate changes on cash and cash equivalents" separately.
63Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The prior-year year-end amounts and the prior-year actual are presented on the basis of the amounts converted
from the prior-year financial statement.Where the Group losses control of overseas operations due to disposing of all the ownership interests in overseas
operations or the disposal of part of the equity investment or other reasons the difference in the translation of the
foreign currency statements in the ownership interests attributable to the parent company related to the overseas
operations shown below the items of shareholders' equity in the balance sheet shall be transferred to the profit or loss
of the period of disposal.Where the proportion of equity interests held in overseas operations decreases due to the disposal of part of the
equity investment or other reasons without lost the control of the overseas operations the difference in the translation
of foreign currency statements related to the disposal part of the overseas operations shall be attributed to the minority
shareholders' interests and shall not be transferred to the profit or loss of the period. When disposing of a portion of
equity in an overseas operation that is classified as an associate or a joint venture the differences on translation of
foreign currency statements related to that operation are transferred to profit or loss in the disposal period in
proportion to the percentage of equity disposed.
11. Financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument
contract.In the case of the purchase or sale of financial assets in the usual manner it shall recognize the assets to be
received and the liabilities to be incurred on the transaction date or derecognize the assets sold on the transaction
date.Financial assets and financial liabilities are measured at fair value at initial recognition (for the determination
method of the fair value of financial assets and financial liabilities please refer to the relevant disclosure in "IV. Basis
of preparation of financial statements" in this chapter). For financial assets and financial liabilities measured at fair
value and changes in which are recorded in profit or loss for the period the related transaction costs are recognized
directly in profit or loss for the period; For other categories of financial assets and financial liabilities the related
transaction costs are included in the initial recognition amount. When the Group initially recognizes accounts
receivable that do not include a significant financing component or when the financing component of a contract not
exceeding one year is disregarded under Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue
Standard") such receivables are initially measured at the transaction price as defined in the Revenue Standard.The effective interest rate method refers to the method of calculating the amortized cost of financial assets or
financial liabilities and apportioning interest income or interest expense into each accounting period.The effective interest rate is the interest rate used to discount the estimated future cash flows of a financial asset
or financial liability over the expected life of the financial asset to the carrying balance of the financial asset or the
amortized cost of the financial liability. In determining the effective interest rate the expected cash flow is estimated
taking into account all contractual terms of the financial asset or financial liability (such as early repayment rollover
call option or other similar option etc.) without taking into account the expected credit loss.
64Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The amortized cost of a financial asset or financial liability is the amount initially recognized less the principal
repaid plus or minus the accumulated amortization resulting from the amortization of the difference between the initial
recognition amount and the amount due date using the effective interest rate method and then deduct the
accumulated provision for losses (for financial assets only).
11.1 Classification recognition and measurement of financial assets
After initial recognition the Group conducts subsequent measurements of different classes of financial assets at
amortized cost measured at fair value and changes in which are recognized in other comprehensive income or
measured at fair value and changes in which are recorded in profit or loss for the period.The contractual clauses of a financial asset provide that the cash flows generated on a given date are only the
payment of principal and interest based on the outstanding principal amount and the Group's business model is aimed
for managing the financial asset is to collect contractual cash flows then the Group classifies the financial asset as a
financial asset measured at amortized cost. Such financial assets mainly include monetary funds notes receivable
accounts receivable and other receivables.If the contractual terms of a financial asset stipulate that on specified dates cash flows comprise solely payments
of principal and interest on the outstanding principal and the Group's business model for managing the financial asset
is both to collect contractual cash flows and to sell the financial asset then the Group classifies this asset as measured
at fair value through other comprehensive income. Such financial assets with a maturity of more than one year from
the date of acquisition are listed as other debt investments and if they mature within one year (inclusive) from the
balance sheet date they are shown as non-current assets maturing within one year; Accounts receivable and notes
receivable classified as measured at fair value and changes in which are recognized in other comprehensive income at
the time of acquisition are shown in receivables financing and the other acquired with a maturity of one year (inclusive)
are shown in other current assets.At initial recognition the Group may irrevocably designate investments in non-tradable equity instruments other
than contingent consideration recognized in business combinations that are under non-common control as financial
assets measured at fair value and changes in which are recognized in other comprehensive income on a single
financial asset basis. Such financial assets are listed as investments in other equity instruments.Where a financial asset meets any of the following conditions it indicates that the Group's purpose in holding the
financial asset is transactional:
The purpose of acquiring the underlying financial asset is primarily for the purpose of the recent sale.The underlying financial assets were part of a centrally managed portfolio of identifiable financial instruments
at the time of initial recognition and there was objective evidence of an actual pattern of short-term profits in
the recent.The financial asset is a derivative Except for derivatives that meet the definition of financial guarantee
contract and derivatives that are designated as effective hedging instruments.Financial assets measured at fair value and changes in which are recorded in profit or loss for the period include
financial assets classified as measured at fair value and changes in which are recorded in profit or loss for the period
65Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
and financial assets designated as measured at fair value and changes in which are recorded in profit or loss for the
period:
Financial assets that do not qualify as financial assets measured at amortized cost and financial assets
measured at fair value and changes in which are included in other comprehensive income are classified as
financial assets measured at fair value and changes in which are recorded in profit or loss for the period.At the time of initial recognition in order to eliminate or significantly reduce accounting mismatches the
Group may irrevocably designate financial assets as financial assets measured at fair value and changes in
which are recorded in profit or loss for the period.Financial assets measured at fair value through profit or loss are presented under "Financial assets held for
trading." Those due in more than one year from the balance sheet date (or with no fixed maturity) and expected to be
held for more than one year are presented under "Other non-current financial assets."
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective
interest rate method and the gains or losses arising from impairment or derecognition are included in profit or loss for
the period.The Group recognizes interest income on financial assets measured at amortized cost in accordance with the
effective interest rate method. For financial assets purchased or derived that have incurred credit impairment the
Group determines interest income based on the amortized cost of the financial asset and the credit-adjusted effective
interest rate from the initial recognition. In addition the Group determines interest income based on the carrying
balance of financial assets multiplied by the effective interest rate.
11.1.2 Financial assets measured at fair value and changes in which are recorded in other comprehensive income
Impairment losses or gains and interest income calculated using the effective interest rate method related to
financial assets classified as measured at fair value and changes in which are included in other comprehensive income
are recognized in profit or loss for the period and except that changes in the fair value of such financial assets are
recognized in other comprehensive income. The amount of the financial asset recognized in profit or loss for each
period is equal to the amount that is recognized in profit or loss for each period as if it had been measured at
amortized cost. When the financial asset is derecognized the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income and recognized in profit or loss for the period.Changes in fair value in investments in non-traded equity instruments designated as measured at fair value and
the change in which are recognized in other comprehensive income are recognized in other comprehensive income
and when the financial asset is derecognized the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income to retained earnings. During the period during
which the Group holds the investment in the non-tradable equity instrument the dividend income is recognized and
recorded in profit or loss for the period when the Group's right to receive dividends has been established the economic
benefits associated with the dividends are likely to flow into the Group and the amount of the dividends can be reliably
measured.
66Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
11.1.3 Financial assets measured at fair value and changes in which are recorded in profit or loss for the period
Financial assets measured at fair value and changes in which are recorded in profit or loss for the period are
subsequently measured at fair value and gains or losses resulting from changes in fair value and dividends and
interest income related to the financial asset are recorded in profit or loss for the period. 11.2 Impairment of Financial
Instruments
11.2 Impairment of financial instruments
The Group recognizes impairment allowances and provision for losses based on expected credit losses for
financial assets measured at amortized cost financial assets classified as fair value through other comprehensive
income and lease receivables.The Group measures the loss provision at an amount equivalent to the expected credit loss over the life of notes
receivable and accounts receivable formed by transactions regulated by revenue standards that do not contain a
material financing element or do not take into account the financing component of contracts not exceeding one year
as well as operating leases receivable arising from transactions regulated by No. 21Accounting Standard for Business
Enterprises -Leases.For other financial instruments except for those purchased or originated with credit loss the Group evaluates
changes in credit risk since initial recognition at each balance sheet date. If the credit risk of the Financial Instrument
has increased significantly since the initial recognition the Group measures its loss provision by an amount equivalent
to the expected credit loss over the life of the financial instrument; If the credit risk of the financial instrument does not
increase significantly since the initial recognition the Group measures its loss provision by an amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. Increases or reversals of credit loss provisions
are recognized as impairment losses or gains in profit or loss for the period except for financial assets classified as
measured at fair value and changes in which are recognized in other comprehensive income. For financial assets
classified as measured at fair value and the change thereof is recorded in other comprehensive income the Group
recognizes a credit loss provision in other comprehensive income and includes impairment losses or gains in profit or
loss for the period without reducing the carrying amount of the financial asset as shown in the balance sheet.Where the Group has measured a loss provision in the preceding accounting period by an amount equivalent to
the expected credit loss over the life of the financial instrument but the financial instrument is no longer subject to a
significant increase in credit risk since the initial recognition at the period balance sheet date the Group measures the
loss provision for the financial instrument at the period balance sheet date by an amount equivalent to the expected
credit loss in the next 12 months and the resulting reversal amount for loss provision is recognized as an impairment
gain in profit or loss for the period.
11.2.1 Significant increase in credit risk
Using reasonably and evidence-based forward-looking information available the Group compares the risk of
default on financial instruments at the balance sheet date with the risk of default on the initial recognition date to
determine whether the credit risk of financial instruments has increased significantly since initial recognition.In assessing whether credit risk has increased significantly the Group will consider the following factors:
67Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(1) whether the internal price indicators have changed significantly due to changes in credit risk.
(2) whether the interest rate or other terms of an existing financial instrument have changed significantly (e.g.
stricter contractual terms additional collateral or higher yields) if the existing financial instrument is derived or issued
as a new financial instrument at the balance sheet date.
(3) whether there has been a significant change in the external market indicators of the credit risk of the same
financial instrument or similar financial instruments with the same estimated duration. These indicators include: credit
spreads credit default swap prices for borrowers the length and extent to which the fair value of financial assets is
less than their amortized cost and other market information relevant to borrowers (such as changes in the price of
borrowers' debt or equity instruments).
(4) whether there has been a significant change in the external credit rating of the financial instrument in fact or
expectation.
(5) whether the actual or expected internal credit rating of the debtor has been downgraded.
(6) Whether there has been an adverse change in the debtor's business financial or economic conditions that is
expected to significantly affect the debtor's ability to meet its debt obligations.
(7) Whether the debtor's operating performance whether actual or expected has changed significantly.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased significantly.
(9) whether there has been a significant adverse change in the regulatory economic or technical environment in
which the debtor is located.
(10) whether there has been a significant change in the value of the collateral used as collateral for the debt or in
the quality of the guarantee or credit enhancement provided by a third party. These changes are expected to reduce
the economic incentive for the debtor to repay the loan within the term specified in the contract or affect the probability
of default.
(11) whether there has been a significant change in the economic incentive expected to reduce the borrower's
repayment within the term agreed in the contract.
(12) whether there has been a change in the expectations of the loan contract including the waiver or amendment
of contractual obligations that may result from the anticipated breach of the contract the granting of interest-free
periods interest rate jumps requests for additional collateral or guarantees or other changes to the contractual
framework of financial instruments.
(13) whether there has been a significant change in the debtor's expected performance and repayment behavior.
(14) Whether the Group's credit management methods for financial instruments have changed.
68Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Regardless of whether the credit risk has increased significantly after the above assessment when the payment
of a financial instrument contract has been overdue for more than (inclusive) 30 days it indicates that the credit risk of
the financial instrument has increased significantly.At the balance sheet date if the Group determines that a financial instrument has only a low credit risk the Group
assumes that the credit risk of the financial instrument has not increased significantly since its initial recognition. A
financial instrument is considered to have a low credit risk if it has a low risk of default the borrower's ability to meet its
contractual cash flow obligations in the short term is strong and even if there are adverse changes in the economic
situation and operating environment over a longer period of time that do not necessarily reduce the borrower's
performance of its contractual cash obligations.
11.2.2 Financial assets that have undergone credit impairment
Where one or more events occur in which the Group expects to adversely affect the future cash flows of a
financial asset the financial asset becomes a financial asset that has experienced credit impairment. Evidence that
credit impairment of financial assets has occurred includes the following observable information:
(1) significant financial difficulties of the issuer or debtor;
(2) Breach of contract by the debtor such as default or delay in payment of interest or principal;
(3) The creditor gives the debtor concessions under economic or contractual considerations relating to the
debtor's financial difficulties that would not have been made under any other circumstances;
(4) The debtor is likely to go bankrupt or undergo other financial restructuring;
(5) The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
(6) Purchase or derive a financial asset at a substantial discount that reflects the fact that a credit loss has
occurred.Based on the Group's internal credit risk management if internal recommendations or externally obtained
information indicates that the debtor of a financial instrument cannot fully repay all creditors including the Group
(regardless of any guarantee obtained by the Group) the Group considers this a default event.Notwithstanding the above assessment if a contract payment for a financial instrument is overdue for more than
90 days(inclusive) the Group presumes that the financial instrument has defaulted. 11.2.3 Determination of Expected
Credit Loss
11.2.3 The Group uses an impairment matrix on a portfolio basis on notes receivable accounts receivable and
other receivables to determine credit losses on relevant financial instruments.The Group classifies financial instruments into different groups based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument credit risk rating type of
collateral date of initial recognition industry in which the debtor is in value of collateral relative to financial assets etc.
69Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
For financial assets and lease receivables the expected credit loss is the present value of the difference between the
contractual cash flows due to the Group and the cash flows expected to be collected.The reflection factors of the Group's methodology for measuring expected credit losses on financial instruments
include: an unbiased probability-weighted average amount determined by evaluating a range of possible outcomes;
the time value of money; reasonable and well-founded information about past events current conditions and
projections of future economic conditions that can be obtained at the balance sheet date without unnecessary
additional costs or efforts.
11.2.4 Write-down of Financial Assets
Where the Group no longer reasonably expects that the contractual cash flows of financial assets will be
recovered in whole or in part the carrying balance of the financial assets will be written down directly. Such write-
downs constitute derecognition of the underlying financial assets.
11.3 Transfer of Financial Assets
Financial assets that meet one of the following conditions are derecognized: (1) the contractual right to receive
cash flows from the financial asset is terminated; (2) the financial asset has been transferred and substantially all of
the risks and rewards in the ownership of the financial asset have been transferred to the transferring party; (3) the
financial asset has been transferred and although the Group has neither transferred nor retained substantially all of
the risks and rewards in the ownership of the financial asset it has not retained control over the financial asset.Where the Group neither transfers nor retains substantially all of the risks and rewards in ownership of a financial
asset and retains control of the financial asset it will continue to recognize the transferred financial asset to the extent
that it continues to be involved in the transferred financial asset and recognize the relevant liabilities accordingly. The
Group measures the relevant liabilities as follows: The Group measures that liability as follows:
Where the transferred financial asset is measured at amortized cost the book value of the related liability
equals the book value of the asset in which the Group continues to be involved minus the amortized cost of
any rights retained by the Group (if the Group retained such rights due to the transfer) and plus the
amortized cost of any obligations assumed by the Group (if the Group assumed such obligations due to the
transfer). Such liabilities are not designated as financial liabilities measured at fair value through profit or loss.Where the transferred financial assets are measured at fair value the carrying amount of the relevant
liabilities is equal to the carrying amount of the financial assets that continue to be involved in the transferred
financial assets less the fair value of the rights retained by the Group (if the Group retains the relevant rights
as a result of the transfer of financial assets) plus the fair value of the obligations assumed by the Group (if
the Group has assumed such obligations as a result of the transfer of financial assets) the fair value of such
rights and obligations is the fair value when measured on an independent basis.If the overall transfer of financial assets satisfies the conditions for derecognition the difference between the
carrying amount of the transferred financial assets at the derecognition date and the consideration received as a result
of the transfer of the financial and the sum of the amount corresponding to the derecognition portion of the
accumulated fair value change originally included in other comprehensive income is included in profit or loss for the
period. If the Group transfers financial assets that are investments in non-traded equity instruments designated as
70Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
measured at fair value and changes in which are recognized in other comprehensive income the accrued gains or
losses previously recognized in other comprehensive income are transferred from other comprehensive income and
recorded in retained earnings.If a partial transfer of financial assets satisfies the conditions for derecognition the carrying amount of the financial
assets as a whole before the transfer is apportioned between the derecognized portion and the continuing recognition
portion at the respective relative fair value on the transfer date and the difference between the sum of the amount of
the consideration received in the derecognized portion and the amount corresponding to the derecognized portion of
the accumulated fair value change originally included in other comprehensive income and the carrying amount of the
derecognized portion at the derecognition date is included in profit or loss for the current period. If the Group transfers
financial assets that are investments in non-traded equity instruments designated as measured at fair value and
changes in which are recognized in other comprehensive income the accrued gains or losses previously recognized in
other comprehensive income are transferred from other comprehensive income and recorded in retained earnings.If the conditions for derecognition are not met for the overall transfer of financial assets the Group continues to
recognize the transferred financial assets as a whole and recognizes the consideration received as a liability.
11.4 Classification of financial liabilities and equity instruments
The Group classifies the financial instruments or their components as financial liabilities or equity instruments at
initial recognition according to the contract terms of the financial instruments issued and their economic essence not
just in legal form combined with the definitions of financial liabilities and equity instruments.
11.4.1 Classification recognition and measurement of financial liabilities
Upon initial recognition financial liabilities are classified as financial liabilities measured at fair value through profit
or loss or other financial liabilities.
11.4.1.1 Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value and whose changes are included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated
as measured at fair value and whose changes are included in current profits and losses. Except for derivative financial
liabilities which are listed separately financial liabilities measured at fair value and whose changes are included in
current profits and losses are listed as transactional financial liabilities.Financial liabilities that meet one of the following conditions indicate that the purpose of the Group's financial
liabilities is transactional:
The purpose of undertaking relevant financial liabilities is mainly to repurchase in the near future.The relevant financial liabilities are part of the identifiable financial instrument portfolio under centralized
management at the initial recognition and there is objective evidence to show the actual short-term profit
model in the near future.Related financial liabilities are derivatives. Except for derivatives that meet the definition of financial
guarantee contract and derivatives that are designated as effective hedging instruments.
71Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Group can designate financial liabilities that meet one of the following conditions as financial liabilities
measured at fair value and whose changes are included in current profits and losses at initial recognition: (1) The
designation can eliminate or significantly reduce accounting mismatch; (2) According to the risk management or
investment strategy stated in the formal written documents of the Group the financial liability portfolio or the portfolio of
financial assets and financial liabilities are managed and evaluated on the basis of fair value and reported to key
management personnel within the Group on this basis; (3) Qualified mixed contracts containing embedded derivatives.Transactional financial liabilities are subsequently measured at fair value and gains or losses caused by changes
in fair value and dividends or interest expenses related to these financial liabilities are included in current profits and
losses.For financial liabilities designated as being measured at fair value and whose changes are included in the current
profits and losses the changes in fair value of the financial liabilities caused by changes in the Group's own credit risk
are included in other comprehensive income and other changes in fair value are included in the current profits and
losses. When the financial liabilities are derecognized the accumulated change of its fair value caused by the change
of their own credit risk previously included in other comprehensive income is carried forward to retained income.Dividends or interest expenses related to these financial liabilities are included in the current profits and losses. If
treating the effect of changes in the liability's own credit risk in this manner creates or enlarges an accounting
mismatch in profit or loss the Group recognizes all gains or losses on the liability (including those related to changes
in its own credit risk) in profit or loss.
11.4.1.2 Other financial liabilities
Other financial liabilities except those caused by the transfer of financial assets that do not meet the conditions for
derecognition or continue to be involved in the transferred financial assets are classified as financial liabilities
measured in amortized cost and subsequently measured in amortized cost. The gains or losses arising from
derecognition or amortization are included in the current profits and losses.If the modification or renegotiation of the contract between the Group and the counterparty does not result in the
termination of the recognition of the financial liabilities that are subsequently measured according to amortized cost
but the cash flow of the contract changes the Group recalculates the book value of the financial liabilities and records
the relevant gains or losses into the current profits and losses. The recalculated book value of such financial liabilities
is determined by the Group according to the present value of discounted contract cash flow that will be renegotiated or
modified according to the original actual interest rate of the financial liabilities. For all costs or expenses arising from
the modification or renegotiation of the contract the Group adjusts the book value of the modified financial liabilities
and amortizes them within the remaining term of the modified financial liabilities.
11.4.2 Derecognition of financial liabilities
If all or part of the current obligations of financial liabilities have been discharged the recognition of financial
liabilities or part thereof shall be terminated. If the Group (the Borrower) and the Lender will sign an agreement to
replace the original financial liabilities by undertaking new financial liabilities and the contract terms of the new
financial liabilities are substantially different from those of the original financial liabilities the Group will derecognize the
original financial liabilities and recognize the new financial liabilities at the same time.
72Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
If all or part of the financial liabilities are derecognized the difference between the book value of the derecognized
part and the consideration paid (including the transferred non-cash assets or the new financial liabilities undertaken)
will be included in the current profits and losses.
11.4.3 Equity instruments
Equity instruments refer to contracts that can prove that the Group has residual interests in assets after deducting
all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity instruments by the Group
are treated as changes in equity. The Group does not recognize changes in the fair value of equity instruments.Transaction costs related to equity transactions are deducted from equity.The distribution of equity instrument holders by the Group is treated as profit distribution and the stock dividends
paid do not affect the total shareholders' equity.
11.5 Derivatives
Derivatives including forward foreign exchange contracts are initially measured at fair value on the contract date
and subsequently measured at fair value.
11.6 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and this legal
right is currently enforceable and the Group plans to settle the financial assets on a net basis or realize the financial
assets and pay off the financial liabilities at the same time the financial assets and financial liabilities are listed in the
balance sheet at the amount after offsetting each other. Otherwise financial assets and financial liabilities are
presented separately in the balance sheet without offset.
12. Notes receivable
12.1 Methods for determining and accounting treatment for expected credit losses of notes receivable
For notes receivable with significantly increased credit risk such as those past due and not accepted or where
there is clear evidence that the acceptor is likely unable to fulfill its acceptance obligation the Group evaluates credit
losses on an individual basis. Other notes receivable are evaluated based on their credit risk characteristics as a group.Any increase or reversal of the provision for expected credit losses on notes receivable is recognized as a credit
loss or gain in profit or loss.
12.2 Portfolio types and basis for determining credit loss provisions based on credit risk characteristics
Except for the notes receivable that assess the credit risk individually the rest of the notes receivable are divided
into different portfolios based on their credit risk characteristics:
Portfolio Category Determining basis
Portfolio 1 Bank acceptance bill
Portfolio 2 Trade acceptance
73Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
13. Accounts receivable
13.1 Methods for determining expected credit losses and accounting treatment of accounts receivable
The Group uses an impairment matrix to determine the credit losses of accounts receivable on a portfolio basis.The increase or reversal of the provision for expected credit losses of accounts receivable shall be recognized in profit
or loss for the current period as credit impairment losses or gains.
13.2 The type of portfolio and the basis for determining the provision for credit losses based on the credit risk
characteristics of the portfolio.The Group classifies accounts receivable into portfolio1 based on common risk characteristics. The common
credit risk characteristics adopted by the Group mainly include the credit tenor and operating conditions of the debtor.
13.3 Calculation method of aging for credit risk characteristics portfolio recognized by aging
13.3Method for calculating aging when determining credit risk characteristic combination
The Group uses both the natural aging of accounts receivable and the overdue aging relative to the credit term as
credit risk characteristics applying an impairment matrix to determine expected credit losses. Aging is calculated from
the date of its initial recognition. If the terms and conditions of the accounts receivable are modified but do not result in
the derecognition of the accounts receivable the aging shall be calculated consecutively.
13.4 Determining standard of individual provision according to individual provision for bad debts
The Group individually determines credit losses for accounts receivable where there is evidence of a significant
increase in credit risk.
14. Receivables financing
14.1 Determination method and accounting treatment method for expected credit loss of accounts receivable
financing
The Group determines credit losses for receivables financing on an individual-asset basis. The Group recognizes
the provision for credit losses for receivables financing in other comprehensive income and records any credit loss or
gain in profit or loss without reducing the book value presented in the balance sheet.
14.2 Judgment criteria for individual provision of credit loss reserves based on individual provision
The Group evaluates the financing of corresponding receivables based on the acceptance bank credit status of
bank acceptance bills and makes provisions for credit losses.
15. Other receivables
Determination method and accounting treatment of expected credit losses
74Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Group determines the credit losses on other receivables on a portfolio basis. Any increase or reversal of the
provision for expected credit losses on other receivables is recognized as a credit loss or gain in profit or loss.
15.1 Portfolio types and basis for determining credit loss provisions based on credit risk characteristics
The Group divides other receivables into different combinations based on common credit risk characteristics.Common credit risk characteristics used by the Group include initial recognition date remaining contract term and
length of overdue period.
15.2 Method for calculating aging when determining credit risk characteristic combination
Aging is calculated from the date of its initial recognition. If the terms and conditions of other receivables are
modified but do not result in the derecognition of other receivables the aging shall be calculated consecutively.
16. Inventories
16.1 Inventory Category Goods Out Pricing Method Inventory System Amortization Method for Low-Value
Consumables and Packaging
16.1.1 Inventory Category
The Group's inventory mainly includes raw materials products in process finished products and materials
entrusted for processing. Inventories are initially measured at cost which includes purchase costs processing costs
and other expenditures incurred to bring the inventories to their current location and condition.
16.1.2 Method of costing for issued inventories
When inventories are issued the actual cost is determined using the weighted average method.
16.1.3 Inventory system
The inventory system is perpetual inventory system.
16.1.4 Amortization method of low-value consumables and packaging materials
Turnover materials and low-value consumables are amortized by straight-line method or one-time write-off method.
16.2 Recognition criteria and accrual method of provision for inventory falling price loss
On the balance sheet date inventories are measured according to the lower of cost and net realizable value.When the net realizable value is lower than the cost the inventory depreciation provision is withdrawn.Net realizable value refers to the estimated selling price of inventory minus the estimated cost estimated sales
expenses and related taxes and fees at the time of completion in daily activities. When determining the net realizable
value of inventory it is based on the conclusive evidence obtained and the purpose of holding inventory and the
75Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
influence of events after the balance sheet date are also considered. Inventory depreciation provision is drawn
according to the difference between the cost of a single inventory item and its net realizable value.After the provisions for the inventory depreciation are made the factors causing any write-down of inventory value
have disappeared leading to the net realizable values of inventories higher than its book value the amount of write-
down shall be resumed and be reversed from the original provision for inventory devaluation with the reversal being
included in current profit or loss.Generally provisions for inventory depreciation are made on an item-by-item basis.
17. Long-term equity investments
17.1 Criteria for joint control and important influence
Control means that the investor has the power over the investee enjoys variable returns by participating in the
related activities of the investee and has the ability to influence the amount of returns by using the power over the
investee. Joint control refers to the common control of an arrangement according to the relevant agreement and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control rights
before making decisions. Significant influence refers to the power to participate in decision-making on the financial and
operating policies of the investee but it cannot control or jointly control the formulation of these policies with other
parties. When determining whether the investor can exercise control or significant influence over the investee the
potential voting rights arising from convertible corporate bonds or exercisable warrants currently held by the investor or
other parties are taken into account.
17.2 Determination of initial investment cost
For the long-term equity investment obtained by business merger under the same control the initial investment
cost of the long-term equity investment shall be the share of the book value of the owners' equity of the merged party
in the consolidated financial statements of the final controlling party on the merger date. The capital reserve shall be
adjusted for the difference between the initial investment cost of long-term equity investment and the book value of
cash paid non-cash assets transferred and debts undertaken; If the capital reserve is insufficient to be offset the
retained income shall be adjusted. If equity securities are issued as the merger consideration the initial investment
cost of long-term equity investment shall be the share of the book value of the owners' equity of the merged party in
the consolidated financial statements of the final controlling party on the merger date the share capital shall be the
total face value of issued shares and the capital reserve shall be adjusted according to the difference between the
initial investment cost of long-term equity investment and the total face value of the issued shares; If the capital
reserve is insufficient to be offset the retained income shall be adjusted.For the long-term equity investment obtained from the business merger not under the same control the initial
investment cost of the long-term equity investment shall be the merger cost on the purchase date.Intermediary expenses such as audit legal services evaluation and consultation and other related management
expenses incurred by the merging party or the purchaser for business merger are included in the current profits and
losses when incurred.
76Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Long-term equity investment obtained by other means except the long-term equity investment formed by business
merger shall be initially measured at cost. If the additional investment can exert a significant influence or implement
joint control which however does not constitute control on the investee the long-term equity investment cost is the sum
of the fair value of the original equity investment determined in accordance with the Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments plus the new investment cost.
17.3 Subsequent measurement and profit and loss recognition method
17.3.1 Long-term equity investment calculated by cost method
The company's financial statements use the cost method to calculate the long-term equity investment in
subsidiaries. Subsidiaries refer to the invested entities over which the Group can exercise control.Long-term equity investment accounted by cost method is measured at the initial investment cost. Add or recover
investment to adjust the cost of long-term equity investment. The current investment income is recognized according to
the cash dividend or profit declared by the investee.
17.3.2 Long-term equity investment calculated by equity method
The Group's investment in associated enterprises and joint ventures is accounted for by the equity method. An
associate is an investee over which the Group has significant influence and a joint venture is a joint venture
arrangement under which the Group has rights to the net assets of the arrangement.Under the equity method if the initial investment cost of the long-term equity investment exceeds the share of the
fair value of the investee's identifiable net assets at the time of investment the initial investment cost is not adjusted. If
the initial investment cost is less than the fair value share of the identifiable net assets of the investee the difference
shall be included in the current profits and losses and the cost of long-term equity investment shall be adjusted.When accounting by the equity method the investment income and other comprehensive income are recognized
respectively according to the share of the net profit and loss and other comprehensive income realized by the investee
and the book value of long-term equity investment is adjusted; The share is calculated according to the profit or cash
dividend declared by the investee and the book value of long-term equity investment is reduced accordingly; For other
changes in the owners' equity of the investee except the net profit and loss other comprehensive income and profit
distribution the book value of the long-term equity investment shall be adjusted and included in the capital reserve.When recognizing the share of the net profit and loss of the investee the net profit of the investee shall be adjusted
and recognized based on the fair value of the identifiable assets of the investee at the time of investment. If the
accounting policies and accounting periods adopted by the investee are inconsistent with those of the Company the
financial statements of the investee shall be adjusted according to the accounting policies and accounting periods of
the Company so as to recognize the investment income and other comprehensive income. For the transactions
between the Group and the associated enterprises and joint ventures if the assets invested or sold do not constitute
business the unrealized internal transaction gains and losses shall be offset by the portion belonging to the Group
according to the proportion enjoyed and the investment gains and losses shall be recognized on this basis. However
the unrealized internal transaction losses between the Group and the investee belong to the impairment losses of the
transferred assets and shall not be offset.
77Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
When recognizing the share of the net loss of the investee the book value of the long-term equity investment and
other long-term rights and interests that substantially constitute the net investment of the investee shall be written
down to zero. In addition if the Group is obligated to bear additional losses to the investee the estimated liabilities will
be recognized according to the expected obligations and included in the current investment losses. If the investee
realizes the net profit in the future the Group will resume the recognition of the income share after the income share
makes up for the unrecognized loss share.
17..4 Disposal of long-term equity investment
When disposing of long-term equity investment the difference between its book value and the actual purchase
price is included in the current profits and losses. If a long-term equity investment has been accounted for using the
equity method and the remaining equity after disposal is still accounted for using the equity method any other
comprehensive income previously recognized under the equity method is treated on the same basis as if the investee
had directly disposed of the related assets or liabilities and is transferred proportionately. Owners' equity recognized
by changes in other owners' equity of the investee except net profit and loss other comprehensive income and profit
distribution shall be carried forward to current profits and losses in proportion. If a long-term equity investment is
accounted for using the cost method and the remaining equity after disposal continues to be accounted for using the
cost method any other comprehensive income recognized before the Group gained control under either the equity
method or the accounting standards for recognizing and measuring financial instruments is treated on the same basis
as if the investee had directly disposed of the related assets or liabilities and is transferred proportionately. Other
changes in owners' equity other than net profit or loss other comprehensive income and profit distribution in net asset
of the investee accounted for and recognized by using the equity method shall be carried forward to the current profit
or loss.Where the Group loses the control over the investee due to the disposal of part of the equity investments when it
prepares separate financial statements the remaining equity after disposal that can commonly control or have
significant influence on the investee will be measured under the equity method and the remaining equity shall be
deemed to have been adjusted under the equity method on acquisition. If the remaining equity after disposal cannot be
jointly controlled or exert significant influence on the investee it shall be accounted for according to the relevant
provisions of the standards for the recognition and measurement of financial instruments and the difference between
its fair value and book value on the date of control loss shall be included in the current profits and losses. For other
comprehensive income recognized by the Group before it gains control of the investee when it loses control of the
investee it shall be treated on the same basis as the direct disposal of related assets or liabilities by the investee.Changes in owners' equity in the net assets of the investee except net profit and loss other comprehensive income
and profit distribution shall be carried forward to current profits and losses when it loses control of the investee. If the
remaining equity after disposal is accounted by the equity method other comprehensive income and other owners'
equity will be carried forward in proportion; If the remaining equity after disposal is changed to accounting treatment
according to the recognition and measurement standards of financial instruments all other comprehensive income and
other owners' equity will be carried forward.If the Group loses joint control or significant influence on the investee due to the disposal of some equity
investments the remaining equity after disposal shall be accounted for according to the recognition and measurement
standards of financial instruments and the difference between its fair value and book value on the date of joint control
loss or significant influence shall be included in the current profits and losses. Other comprehensive income
recognized by the original equity investment due to accounting by the equity method shall be accounted for on the
78Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
same basis as the direct disposal of relevant assets or liabilities by the investee when the equity method is terminated.All the owners' equity recognized by the investee due to changes in other owners' equity except net profit and loss
other comprehensive income and profit distribution shall be carried forward to the current investment income when the
equity method is terminated.The Group disposes of the equity investment in its subsidiaries step by step through multiple transactions until it
loses control. If the above transactions belong to a package transaction each transaction will be treated as a
transaction that disposes of the equity investment in its subsidiaries and loses control. Before losing control the
difference between the price of each disposal and the book value of the long-term equity investment corresponding to
the disposed equity will be recognized as other comprehensive income and then carried forward to the current profits
and losses when it loses control. Provision for inventory falling price loss is generally made on the basis of a single
inventory item.
18. Investment properties
Measurement mode of investment properties
Measurement by cost method
Depreciation and amortization methods
Investment real estate refers to real estate held to earn rent or capital appreciation or both including rented
houses and buildings.Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate are
included in the cost of investment real estate if the economic benefits related to the asset are likely to flow in and the
cost can be measured reliably. Other subsequent expenditures are included in the current profits and losses when
incurred.The Group uses the cost model for subsequent measurement of investment property and provides for
depreciation on a straight-line basis over its service life. The depreciation method useful life estimated residual value
and annual depreciation rates for each category of investment property are as follows:
Category Category Depreciation life Estimated net
Annual
(year) salvage rate (%) DepreciationRate (%)
House Building Straight-linemethod 10-40 0.00-4.00 2.40-10.00
When the investment real estate is disposed of or permanently withdrawn from use and it is not expected to
obtain economic benefits from its disposal the recognition of the investment real estate will be terminated.The difference between the disposal income from the sale transfer scrapping or damage of investment real
estate after deducting its book value and related taxes is included in the current profits and losses.
79Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
19. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing goods providing services leasing or management with a
service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits related to them
are likely to flow into the Group and their costs can be measured reliably. Fixed assets are initially measured at cost.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if the economic
benefits related to the fixed assets are likely to flow in and the cost can be measured reliably and the book value of
the replaced part shall be derecognized. Other subsequent expenditures are included in the current profits and losses
when incurred.
(2) Depreciation method
Category Category Depreciation life Residual value rate Annual depreciationrate
Houses and
buildings Straight-line method 10-40 0.00%-4.00% 2.40%-10.00%
Machinery
equipment Straight-line method 10-14 4.00% 6.86%-9.60%
Transportations Straight-line method 8 4.00% 12.00%
Other equipment Straight-line method 5 4.00% 19.20%
Starting from the month subsequent to the date when the fixed-assets are ready for their intended use
depreciation is accrued over the service life using the straight-line method. The depreciation method depreciation life
estimated residual value rate and annual depreciation rate of various fixed assets are detailed in the table above.Estimated net residual value refers to the amount obtained by the Group from the disposal of the fixed assets at
present after deducting the estimated disposal expenses assuming that the estimated service life of the fixed asset
has expired and the fixed asset is in the expected state at the end of its service life.Other explanations
When the fixed assets are disposed of or it is expected that no economic benefits can be generated through the
use or disposal the fixed assets is derecognized. The difference between the disposal income from the sale transfer
scrapping or damage of fix assets after deducting its book value and related taxes is included in the current profits and
losses.At least at the end of the year the Group will review the service life estimated net salvage and depreciation
method of fixed assets and if there is any change it will be treated as a change in accounting estimate. 20.Construction in progress
80Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
20. Construction in progress
The construction in progress is measured at actual cost which includes various project expenditures incurred
during the construction period capitalized borrowing costs before the project reaches working condition for intended
use and other related costs. No depreciation is allowed for construction in progress.When an in-progress construction project reaches its intended usable state its cost shall be transferred to fixed
assets at the actual cost. If the project has reached its intended usable state but the final accounting settlement has
not yet been completed it shall initially be recorded as fixed assets at an estimated value; upon completion of the final
accounting settlement the original estimated value shall be adjusted to reflect the actual cost but any previously
recognized depreciation shall not be adjusted. The criteria and timing for transferring various types of in-progress
construction projects to fixed assets are as follows:
Category The criteria for carrying forward to fixed assets The time point at which it iscarried forward to a fixed asset
(1) The main construction works and supporting works
have been completed and accepted; (2) Where the
construction works have reached the intended usable
Houses and condition but the final account settlement has not yet been Reach the predetermined usable
buildings processed the assets shall be recognized as fixed assets condition
at their estimated value based on the actual construction
cost starting from the date the works reached the
intended usable condition.The equipment has been accepted by asset management
personnel and user personnel and meets one or more of
the following conditions according to the actual situation:
Installation of (1) Relevant equipment and other supporting facilities
machines and have been installed; It has reached the intended usable
equipment (2) The equipment can maintain normal and stable state
operation for a period of time after debugging; (3) The
production equipment can stably produce qualified
products for a period of time.
21. Borrowing costs
Borrowing costs that can be directly attributed to the purchase construction or production of assets that meet the
capitalization conditions will be capitalized when the asset expenditure has occurred the borrowing costs have
occurred and the necessary purchase construction or production activities to make the assets reach the
predetermined serviceable or saleable state have begun; Capitalization shall stop when the assets that meet the
capitalization conditions purchased constructed or produced reach the predetermined serviceable state or saleable
state. The remaining borrowing costs are recognized as expenses in the current period.For specialized borrowings the capitalization amount is based on the actual interest expenses incurred in the
current period after deducting the interest income earned from unused borrowing funds deposited in the bank or
investment income earned from temporary investments; General borrowings shall be determined by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special
borrowings by the capitalization rate of used general borrowings and on this basis the capitalization amount is
determined. The capitalization rate is calculated and recognized as per the weighted average interest rate of general
borrowing.
81Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
22. Intangible assets
22.1 Service life and basis for determination estimates amortization method or review procedure
Intangible assets include land use rights software and patent rights.Intangible assets are initially measured at cost. Intangible assets with limited service life shall be amortized by
straight-line method in equal installments within their expected service life from the time they are available for use.Intangible assets with uncertain service life shall not be amortized. The amortization method service life and estimated
net salvage of various intangible assets are as follows:
Estimated net salvage
Category Amortization method Service life (year)
rate (%)
30-50 (Determine the service life based on the statutory
Land use right Straight-line method 0.00
service life)
5(The useful life is determined by the period of time that
Software Straight-line method 0.00
is expected to bring economic benefits to the company)
15(The useful life is determined by the period of time
Patent right Straight-line method that is expected to bring economic benefits to the 0.00
company)
At the end of the period the service life and amortization method of intangible assets with limited service life shall
be reviewed and adjusted if necessary.
22.2 Scope of R&D expenditures and related accounting treatments
Expenditure in the research stage is included in the current profits and losses when incurred.Expenditures in the development stage are recognized as intangible assets if they meet the following conditions at
the same time. Expenditures in the development stage that cannot meet the following conditions are included in the
current profits and losses:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) Having the intention to complete the intangible assets and use or sell them;
(3) The ways in which intangible assets generate economic benefits including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in the
market and the intangible assets will be used internally which can prove their usefulness;
(4) Having sufficient technical financial and other resources to support the development of the intangible assets
and having the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
If it is impossible to distinguish between research stage expenditure and development stage expenditure all the
R&D expenditures incurred shall be included in the current profits and losses. The cost of the intangible assets formed
82Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
by internal development activities only includes the total expenditure incurred from the time when the capitalization
conditions are met to the time when the intangible assets reach the intended use. The expenses recognized in profit or
loss before meeting the capitalization conditions during the development for the same intangible asset will not be
adjusted.The scope of R&D expenditure includes wages salaries and welfare expenses of personnel directly engaged in
R&D activities materials fuel and power costs directly consumed in R&D activities and depreciation expenses of
instruments and equipment for R&D activities etc.
23. Impairment of long-term assets
On each balance sheet date the Group checks whether there is any indication that long-term equity investments
investment properties measured by the cost model fixed assets construction in progress right-of-use assets and
intangible assets with a definite service life may have impairment. If these assets show signs of impairment the
recoverable amount is estimated. Intangible assets with uncertain service life and intangible assets that have not yet
reached the serviceable state are tested for impairment every year regardless of whether with signs of impairment.Estimating the recoverable amount of an asset is based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset the recoverable amount of the asset group is determined based on the asset
group to which the asset belongs. The recoverable amount is the higher of the net amount of the fair value of the asset
or asset group minus the disposal expenses or the present value of its expected future cash flow.If the recoverable amount of an asset is lower than its book value the asset impairment provision shall be accrued
according to the difference and included in the current profits and losses.Goodwill shall be tested for impairment at least at the end of each year. When testing the impairment of goodwill
it shall be conducted in combination with the related asset group or asset group portfolio. That is from the purchase
date the book value of goodwill is allocated to the asset group or asset group portfolio that can benefit from the
synergistic effect of business merger in a reasonable way. If the recoverable amount of the asset group or asset group
portfolio containing the allocated goodwill is lower than its book value the corresponding impairment loss will be
recognized. The amount of impairment loss will firstly deduct the book value of goodwill allocated to the asset group or
asset group portfolio and then deduct the book value of other assets according to the proportion of the book value of
assets other than goodwill in the asset group or asset group portfolio.Once the above-mentioned asset impairment losses are recognized they will not be reversed in future accounting
periods.
24. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have occurred but should be borne by the current period
and subsequent periods with an amortization period of more than one year. Long-term deferred expenses shall be
amortized evenly by stages during the expected benefit period.
83Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
25. Contract liabilities
Contractual liabilities refer to the obligation of the Group to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and liabilities under the same contract are listed
on a net basis.
26. Employee compensation
(1) Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Group the Group recognizes the actual
short-term remuneration as a liability and records it into the current profits and losses or related asset costs. The
employee welfare expenses incurred by the Group are included in the current profits and losses or related asset costs
according to the actual amount when actually incurred. If employee welfare expenses are non-monetary benefits they
shall be measured at fair value.For the medical insurance premiums work-related injury insurance premiums maternity insurance premiums and
other social insurance premiums and housing provident funds paid by the Group for employees as well as the labor
union funds and employee education expenses withdrawn by the Group in accordance with the provisions the
corresponding employee compensation amount shall be calculated and determined according to the prescribed
accrual basis and accrual ratio during the accounting period when employees provide services for the Group and the
corresponding liabilities shall be recognized and included in the current profit or loss or related asset costs.
(2) Accounting treatments of post-employment benefits
Post-employment benefits are all defined contribution plans.During the accounting period when employees provide services for the Group the amount payable calculated
according to the set deposit plan is recognized as a liability and included in the current profits and losses or related
asset costs.
(3) Accounting treatments of dismissal benefits
If the Group provides dismissal benefits to employees the employee compensation liabilities arising from the
dismissal benefits shall be recognized at the earlier of the following two dates and included in the current profits and
losses: when the Group cannot unilaterally withdraw the dismissal benefits provided by the plan to terminate labor
relations or the proposal to cut back; When the Group recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
(4) Accounting treatments of other long-term employee benefits
None
84Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
27. Estimated liabilities
When the obligation related to the contingency such as product quality guarantee is a current obligation of the
Group and the performance of such obligation is likely to result in the outflow of economic benefits and the amount of
such obligation can be measured reliably it is recognized as estimated liabilities.On the balance sheet date considering the risk uncertainty and time value of money related to contingencies the
estimated liabilities are measured according to the best estimate of the expenditure required to fulfill the relevant
current obligations. If the time value of money is significant the best estimate is determined by the discounted amount
of expected future cash outflow.
28. Revenue
28.1Accounting policies adopted for revenue recognition and measurement disclosed by business type
The Group has fulfilled its contractual obligation that is when the customer obtains the control right of the
relevant goods or services the income will be recognized according to the transaction price allocated to the
performance obligation. Performance obligation refers to the commitment of the Group to transfer clearly
distinguishable goods or services to customers in the contract. Transaction price refers to the amount of consideration
that the Group is expected to receive due to the transfer of goods or services to customers which however does not
include the money received on behalf of third parties and the money that the Group expects to return to customers.The Group evaluates the contract on the start date of the contract identifies the individual performance obligations
contained in the contract and determines whether each individual performance obligation is performed within a certain
period of time or at a certain point of time. If one of the following conditions is met it belongs to the performance
obligation within a certain period of time and the Group recognizes the income within a certain period of time
according to the performance progress: (1) The customer obtains and consumes the economic benefits brought by the
performance of the Group; (2) The customer can control the goods under construction during the performance of the
Group; (3) The goods produced during the performance of the Group have irreplaceable uses and the Group has the
right to receive payment for the performance accumulated to date throughout the contract period. Otherwise the
Group recognizes the revenue at the point when the customer obtains the right of control of the relevant goods or
services.For goods sold to customers the Group recognizes income when the control of the goods is transferred that is
when the goods are delivered to the designated place of the other party and signed by the other party. The Group
recognizes income in the process of providing property and leasing services.Transaction prices refer to the amount of consideration that the Group is expected to be entitled to receive as a
result of the transfer of goods or services to customers but does not include the amount received on behalf of third
parties and the amount expected to be returned to customers by the Group. In determining the transaction price the
Group takes into account the impact of factors such as variable consideration significant financing elements in the
contract non-cash consideration consideration payable to customers etc.If the contract contains two or more performance obligations the Group will allocate the transaction price to each
individual performance obligation on the contract start date according to the relative proportion of the separate selling
85Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
price of the goods or services promised by each individual performance obligation. However if there is conclusive
evidence that the contract discount or variable consideration is only related to one or more (but not all) performance
obligations in the contract the Group will allocate the contract discount or variable consideration to one or more related
performance obligations. Separate selling price refers to the price at which the Group sells goods or services to
customers separately. If the separate selling price cannot be directly observed the Group comprehensively considers
all relevant information that can be reasonably obtained and estimates the separate selling price by using observable
input values to the maximum extent.For sales with return clauses when the customer obtains the control right of the relevant goods the Group
recognizes the income according to the amount of consideration expected to be charged due to the transfer of goods
to the customer (that is excluding the amount expected to be refunded due to sales return) and recognizes the
liabilities according to the amount expected to be refunded due to sales return; At the same time according to the
book value of the expected returned goods at the time of transfer the balance after deducting the expected cost of
recovering the goods (including the loss of the value of the returned goods) is recognized as an asset and the net
carry-over cost of the above assets is deducted according to the book value of the transferred goods at the time of
transfer.For sales with quality assurance clauses if the quality assurance provides a separate service in addition to
assuring customers that the goods or services sold meet the established standards the quality assurance constitutes
a single performance obligation. Otherwise the Group shall handle the quality assurance responsibility in accordance
with the Accounting Standards for Business Enterprises No.13-Contingencies.According to whether the Group has control over the goods or services before transferring them to customers the
Group judges whether it is the main responsible person or the agent when engaging in transactions. If the Group can
control the goods or services before transferring them to customers the Group is the main responsible person and the
income is recognized according to the total consideration received or receivable; Otherwise the Group as an agent
recognizes income according to the expected amount of commission or handling fee which is determined according to
the net amount of the total consideration received or receivable after deducting the price payable to other interested
parties.If the Group receives the payment for the sale of goods or services from customers in advance it will first
recognize the payment as a liability and then change it to income when the relevant performance obligations are
fulfilled. When the advance payment of the Group does not need to be returned and the customer may give up all or
part of its contractual rights if the Group is expected to be entitled to the amount related to the contractual rights given
up by the customer the above amount will be recognized as income in proportion according to the mode of the
customer's exercise of contractual rights; Otherwise the Group will only convert the relevant balance of the above
liabilities into income when it is extremely unlikely that the customer will demand to perform the remaining performance
obligations.Different revenue recognition methods and measurement methods involved in the use of different business
models for similar business
86Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
29. Government subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Group from the
government free of charge. Government subsidies are recognized when they can meet the conditions attached to
government subsidies and can be received.If government subsidies are monetary assets they shall be measured according to the amount received or
receivable.
29.1Judgment basis and accounting treatment method of government subsidies related to assets
As long-term assets can be formed in the production line subsidies and equipment subsidies of the Group's
government subsidies these government subsidies are government subsidies related to assets.Government subsidies related to assets are recognized as deferred income and are included in the current profits
and losses in installments according to the straight-line method within the service life of the related assets.
29.2Judgment basis and accounting treatment method of government subsidies related to income
As the Group's government subsidies such as industry development support funds enterprise development
support funds and tax subsidies cannot form long-term assets these government subsidies are government subsidies
related to income.Government subsidies related to income if used to compensate related costs and losses in future periods will be
recognized as deferred income and are included in the current profits and losses during the period when related costs
or expenses are recognized; if used to compensate the related costs and losses that have occurred will be directly
included in the current profits and losses.Government subsidies related to the daily activities of the Group are included in other income according to the
nature of economic business. Government subsidies unrelated to the daily activities of the Group are included in non-
operating income.When the confirmed government subsidy needs to be returned if there is a relevant deferred revenue balance
the relevant deferred income book balance will be offset and the excess will be included in the current profits and
losses; If there is no relevant deferred income it will be directly included in the current profits and losses.
30. Deferred tax assets/deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
30.1 Current income tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous periods
shall be measured by the expected income tax payable (or refunded) calculated in accordance with the provisions of
the tax law.
87Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
30.2 Deferred income tax assets and deferred income tax liabilities
For the difference between the book values of some assets and liabilities and their tax basis and the temporary
difference between the book values of items that are not recognized as assets and liabilities but can be determined in
tax basis according to the provisions of the tax law and tax basis the balance sheet liability method is adopted to
recognize deferred income tax assets and deferred income tax liabilities.In general all temporary differences are recognized as related deferred income tax. However for deductible
temporary differences the Group recognizes related deferred income tax assets to the extent that it is likely to obtain
taxable income to offset the deductible temporary differences. In addition for the temporary differences related to the
initial recognition of goodwill and the initial recognition of assets or liabilities arising from transactions that are neither
business merger nor affect accounting profits and taxable income (or deductible losses) the relevant deferred income
tax assets or liabilities are not recognized.For deductible losses and tax deductions that can be carried forward to future years the corresponding deferred
income tax assets are recognized to the extent that it is likely to obtain future taxable income for deducting deductible
losses and tax deductions.The Group recognizes deferred income tax liabilities arising from taxable temporary differences related to
investments in subsidiaries associated enterprises and joint ventures unless the Group can control the time when the
temporary differences are reversed and the temporary differences are unlikely to be reversed in the foreseeable future.For deductible temporary differences related to the investments of subsidiaries associated enterprises and joint
ventures the Group recognizes the deferred income tax assets only when the temporary differences are likely to be
reversed in the foreseeable future and the taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.On the balance sheet date deferred income tax assets and deferred income tax liabilities shall be measured
according to the applicable tax rate during the expected recovery of related assets or settlement of related liabilities.Except that the current income tax and deferred income tax related to transactions and events directly included in
other comprehensive income or shareholders' equity are included in other comprehensive income or shareholders'
equity and the deferred income tax arising from business merger adjusts the book value of goodwill the remaining
current income tax and deferred income tax expenses or gains are included in the current profits and losses. On the
balance sheet date the book value of deferred income tax assets shall be rechecked.On the balance sheet date the book value of the deferred tax assets shall be reviewed. If it is likely that sufficient
taxable income will not be available in the future to offset the benefits of the deferred tax assets the book value of the
deferred tax assets shall be written down. When it is likely to earn sufficient taxable income the written down amount
is reversed.
30.3 Offset of income tax
When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire assets
and pay off liabilities at the same time the Group's current income tax assets and current income tax liabilities are
presented on an offset net basis.
88Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
When the taxpayer has the legal right to settle the current income tax assets and liabilities on a net basis and the
deferred income tax assets and liabilities are related to the income tax levied by the same tax collection department on
the same taxpayer or to different taxpayers but in the future the taxpayers involved intend to settle the current income
tax assets and liabilities on a net basis or acquire assets and pay off liabilities at the same time the Group's deferred
income tax assets and liabilities are presented on an offset net basis.
31. Lease
31.1Accounting treatments for leases in which the Company is the lessee
31.1.1Split of lease
If the contract contains one or more leased and non-leased parts at the same time the Group will split each
separate leased and non-leased part and allocate the contract consideration according to the relative proportion of the
sum of the separate prices of each leased part and the non-leased part.
31.1.2Right-to-use assets
Except for short-term leases the Group recognizes the right-to-use assets on the start date of lease term. The
start date of lease term refers to the start date when the lessor provides the leased assets for the use of the Group.The right-to-use assets is initially measured according to the cost. The cost includes:
Initial measurement amount of lease liabilities;
For the lease payment paid on or before the start date of the lease term if there are lease incentives deduct
the amount related to the lease incentives enjoyed;
Initial direct expenses incurred by the Group;
The estimated costs incurred by the Group for dismantling and removing the leased assets restoring the
premises where the leased assets are located or restoring the leased assets to the state agreed in the lease
clauses.The Group refers to the depreciation provisions in Accounting Standards for Business Enterprises No.4-Fixed
Assets and accrues depreciation for right-to-use assets. If the Group can reasonably determine that it has acquired
the ownership of the leased assets at the expiration of the lease term the right-to-use assets will be depreciated 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.According to the Accounting Standards for Business Enterprises No.8-Impairment of Assets the Group
determines whether the right-to-use assets have been impaired and carries out accounting treatment for the identified
impairment losses.
31.1.3 Lease liabilities
Except for short-term leases the Group initially measures the lease liabilities on the start date of lease term
according to the present value of the unpaid lease payment on that date. When calculating the present value of the
lease payment the Group uses the lease interest rate as the discount rate.
89Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the
leased assets during the lease term including:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive the relevant
amount of lease incentive shall be deducted;
Variable lease payment amount depending on index or ratio;
The exercise price of the option reasonably determined by the Group to be exercised;
The amount to be paid to terminate the lease when the lease term reflects that the Group will exercise the
option;
The amount expected to be paid according to the residual value of the guarantee provided by the Group.After the start of the lease term the Group calculates the interest expense of the lease liabilities in each period of
the lease term at a fixed periodic interest rate and includes it in the current profits and losses or related asset costs.After the commencement of the lease term if the following circumstances occur the Group will re-measure the
lease liabilities and adjust the corresponding right-to-use assets. If the book value of the right-to-use assets has been
reduced to zero but the lease liabilities still need to be further reduced the Group will include the difference in the
current profits and losses:
If the lease term changes or the evaluation result of the purchase option changes the Group will re-measure
the lease liabilities according to the present value calculated by the changed lease payment amount and the
revised discount rate;
If the estimated payable amount according to the guarantee residual value or the index or proportion used to
determine the lease payment changes the Group will re-measure the lease liabilities according to the
present value calculated by the changed lease payment amount and the original discount rate.
31.1.4 As the judgment basis and accounting treatment method for the lessee to simplify the treatment of the
short-term lease
For the short-term lease of some factories and some rented warehouses the Group chooses not to recognize the
right-to-use assets and lease liabilities. Short-term lease refers to the lease that does not exceed 12 months and does
not include the option to purchase on the start date of the lease term. The Group will charge the lease payment for
short-term lease to the current profits and losses or related asset costs in accordance with the straight-line method in
each period of the lease term.
31.1.5 Lease change
If the lease changes and the following conditions are met at the same time the Group will carry out accounting
treatment on the lease change as a separate lease:
The lease modification expands the scope of the lease by adding one or more right of use of the leased
assets;
The increased consideration is equivalent to the individual price of the expanded part of the lease scope
adjusted according to the contract situation.
90Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
If the lease modification is not accounted for as a separate lease on the effective date of the lease modification
the Group re-apportions the consideration of the modified contract re-determines the lease term and re-measures the
lease liabilities at the present value calculated according to the modified lease payments and the revised discount rate.If the lease scope is reduced or the lease term is shortened due to lease change the Group shall correspondingly
reduce the book value of the right-to-use assets and include the related gains or losses of partial or full termination of
lease in the current profits and losses. If other lease changes lead to the re-measurement of lease liabilities the Group
will adjust the book value of the right-to-use assets accordingly.
31.2 Accounting treatments for leases in which the Company is the lessor
31.2.1 Split of lease
If the contract contains both leased and non-leased parts the Group will allocate the contract consideration
according to the provisions of the Accounting Standards for Business Enterprises Revenues on transaction price
allocation and the basis of allocation is the separate prices of the leased part and the non-leased part.
31.2.2 Classification and accounting treatment for rental housing leases
A lease that essentially transfers almost all the risks and rewards related to the ownership of the leased assets is
a financial lease. Other leases except financing lease are operating leases.
31.2.2.1 The Group as a lessor records the operating lease business
During each period of the lease term the Group adopts the straight-line method to recognize the lease receipts
from operating lease as rental income. The initial direct expenses incurred by the Group in connection with operating
leases are capitalized when incurred apportioned on the same basis as rental income recognition during the lease
term and included in current profits and losses in installments.The variable lease receipts related to operating leases obtained by the Group which are not included in the lease
receipts are included in the current profits and losses when actually incurred.
31.2.3 Lease change
If the operating lease is changed the Group will account for it as a new lease from the effective date of the
change and the advance or receivable lease receipts related to the lease before the change will be regarded as the
receipt amount of the new lease.
32. Major changes in accounting policies and accounting estimates
(1) Major changes in accounting policies
?Applicable ?Not applicable
Content and reasons for changes in accounting policies Report item name affected by Impactsignificant factors Amount
On June 4 2026 the Ministry of Finance issued the not applicable 0.00
91Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
"Interpretation No.20 of the Accounting Standards for Business
Enterprises" (hereinafter referred to as "Interpretation No.20").Interpretation No.20 governs the measurement of the cash flow
characteristics of financial asset contracts as well as the
accounting treatment and related disclosure requirements in
situations where currency non-convertibility exists; it shall
come into force on January 1 2026. The Group has adopted
these provisions effective from January 1 2026; the Group
believes that the adoption of these provisions will not have a
material impact on its financial statements.
(2) Major changes in accounting estimates
□Applicable ?Not applicable
(3) Adjustments of relevant items of financial statements at the beginning of the year in the year of initial
implementation of new accounting standards from 2026
□Applicable ?Not applicable
VI. Taxation
1. Main tax types and tax rates
Tax category Tax basis Tax rate
The balance after deducting the The output tax for domestic sales is
deductible input tax from the output calculated according to 13% 9% 6%
VAT tax; The tax calculation method of and 5% of the sales amount
"exemption offset and refund" is calculated according to relevant tax
applied to sales of export products regulations and the tax rebate ratefor export products is 13%
Urban maintenance and construction
tax Payable turnover tax 7%
Enterprise Income tax Payable turnover tax 25%、20%、15%、8.25%
Surcharge for education Payable turnover tax 3%
Local education surcharge Payable turnover tax 2%
Residual value or rental income after
Property tax deducting 30% from the original 1.2%
value of property at one time
If there are taxpayers with different corporate income tax rates please disclose with an explanation
Name of taxpayer Income tax rate
The Board of Directors of Shenzhen Textile (Holdings)
Co. Ltd. 25%
Shenzhen Shenfang Property Management Co. Ltd. 20% (Note 1)
Shenzhen Beauty Century Garment Co. Ltd. 20% (Note 1)
Shenzhen Lisi Industrial Development Co. Ltd. 20% (Note 1)
Shenzhen Shenfang Sungang Property Management
Co. Ltd. 20% (Note 1)
Shengtou (Hongkong) Co. Ltd. 8.25% ( Note 2)
SAPO Photoelectric 15% (Note 3)
92Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
2. Tax incentives
（1）In 2025 SAPO Photoelectric a subsidiary of the Company was jointly recognized as Industry and
Information Technology Bureau of Shenzhen Municipality Shenzhen Finance Bureau and Shenzhen Tax Service
State Taxation Administration respectively with a certification period of 3 years and the certificate numbers of
GR202544204289 respectively. It shall apply the preferential tax policies for high-tech enterprises within three years
after it is recognized as a high-tech enterprise and pay enterprise income tax at the rate of 15% after being filed by the
competent tax bureau.
（2）The Company's subsidiaries Shenzhen Meibainian Garment Co. Ltd. Shenzhen Lisi Industrial
Development Co. Ltd. Shenzhen Shenfang Sungang Property Management Co. Ltd. and Shenzhen Shenfang
Property Management Co. Ltd. are qualified small low-profit enterprises. According to the Announcement of the
Ministry of Finance and the State Taxation Administration on Further Implementing Preferential Policies for Corporate
Income Tax of Small and Micro Enterprises (No. 13 2022) and the Announcement of the Ministry of Finance and the
State Taxation Administration on Preferential Policies for Corporate Income Tax of Small and Micro Enterprises and
Individual Industrial and Commercial Households (No. 6 2023) the part of the annual taxable income not exceeding
RMB 3 million will be included in the taxable income after deducting 25% and corporate income tax will be paid at a
tax rate of 20%. (3)According to the relevant provisions of the Notice of the Ministry of Finance the General
Administration of Customs and the State Taxation Administration on the Import Tax Policies for Supporting the
Development of the New Display Device Industry (CGS
（3）In accordance with the relevant provisions of the Notice of the State Administration of Taxation of the
General Administration of Customs of Ministry of Finance on Import Tax Policies for Supporting the Development of
the New Display Device Industry (No. 19[2021]Cai Guan Shui ) SAPO Photoelectric a subsidiary of the Company
meets the relevant conditions and enjoys the policy of exemption from import duties for related products from January
1 2021 to December 31 2030.
（4）According to the Announcement on the Policy of Additional Value-Added Tax Deduction for Advanced
Manufacturing Enterprises (CZBSWZJGG [2023] No.43) issued by the Ministry of Finance and the State Taxation
Administration in September 2023 from January 1 2023 to December 31 2027 advanced manufacturing enterprises
are allowed to deduct the value-added tax payable by 5% of the deductible input tax for the current period. SAPO
Photoelectric a subsidiary of the Company meets the relevant conditions and enjoyed the policy of additional
deduction of value-added tax (VAT) in H1 2026.
3. Others
Note 1: See "2. Tax preferences" for details.Note 2: according to the Inland Revenue Ordinance of Hong Kong SATO (Hong Kong) Limited is subject to a two-
tier profits tax system. The first HKD 2 million of taxable profits shall taxed at a rate of 8.25% and the profits generated
thereafter shall be taxed at a rate of 16.5%.Note 3: See "2. Tax preferences" for details.
93Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
VII. Notes to items in consolidated financial statements
1. Monetary funds
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Cash on hand 8507.96 15510.21
Bank deposits 502126048.66 449263543.52
Other monetary funds 15719606.07 685396.65
Deposits with finance companies 0.00 0.00
Tota 517854162.69 449964450.38
Other explanations
1. On June 30 2026 the bank deposits include interest income from current deposits agreement deposit and 7-
day notice deposits amounting to RMB 239998.72 (on December 31 2025: RMB 21498.92).
2. On June 30 2026 the Group's other monetary funds included RMB 8799040.80 (December 31 2025: RMB
684860.26) restricted in use due to account freezing and RMB6920565.27 (December 31 2025: RMB
536.39) deposits for bills and letters of credit.
2. Financial assets held for trading
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Financial assets measured at fair
value and whose changes are
included in the current profits and 748398696.32 736341286.18
losses
Money funds and wealth
management products 748398696.32 736341286.18
Tota 748398696.32 736341286.18
3. Notes receivable
(1) Presentation of notes receivable by category
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Bank acceptance 33936675.37 85980246.52
Tota 33936675.37 85980246.52
(2) Disclosure by provision method for bad debts
In RMB
Category Ending balance Beginning balance
94Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Notes
receivable
with
provision for
33936675.37100.00%0.000.00%33936675.3785980246.52100.00%0.000.00%85980246.52
bad debts on
a
combination
basis
Bank
acceptance 33936675.37 100.00% 0.00 0.00% 33936675.37 85980246.52 100.00% 0.00 0.00% 85980246.52
bill
Tota 33936675.37 100.00% 0.00 0.00% 33936675.37 85980246.52 100.00% 0.00 0.00% 85980246.52
Name of category of provision for bad debts on a combination basis: banker's acceptance bill
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Bank acceptance bill 33936675.37 0.00 0.00%
Tota 33936675.37 0.00 0.00%
Explanation on the basis for determining the combination:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit
losses:
□Applicable ?Not applicable
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period:NoneSignificant amounts of recovered or reversed provision for bad
debts for the current period:
□Applicable ?Not applicable
(4) The Company's pledged notes receivable at the end of the period
At the end of the reporting period the Group did not hold any应收 notes pledged as collateral.
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance
sheet date at the end of the period
In RMB
Rewards for the key management
personnel Items Ending derecognized amount Ending un-derecognized amount
Bank acceptance 0.00 33936675.37
Tota 0.00 33936675.37
95Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(6) Actual write-off of notes receivable for the current period
At end of the reporting period the Group had no actual write-off of notes receivable.
4. Accounts receivable
(1) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 833669207.72 777768360.91
1-2 years 253182.00 362522.04
2-3 years 193018.01 126149.29
Over 3 years 13442336.97 13513950.97
Including：3 to 4 years 0.00 0.00
4 to 5 years 67250.00 614709.17
More than 5 years 13375086.97 12899241.80
Tota 847557744.70 791770983.21
(2) Disclosure by provision method for bad debts
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Accounts
receivable
with
provision for 32154585.32 3.79% 17130986.64 53.28% 15023598.68 38464614.51 4.86% 18450283.68 47.97% 20014330.83
bad debts on
an individual
basis
Including:
Accounts
receivable
with
provision for
815403159.3896.21%12471301.35802931858.03753306368.7095.14%11512750.01741793618.69
bad debts on
a
combination
basis
Including:
Portfolio 1 804725110.85 94.95% 12157080.38 1.51% 792568030.47 743510570.70 93.90% 11247868.50 1.51% 732262702.20
Portfolio 2 10678048.53 1.26% 314220.97 2.94% 10363827.56 9795798.00 1.24% 264881.51 2.70% 9530916.49
Tota 847557744.70 100.00% 29602287.99 817955456.71 791770983.21 100.00% 29963033.69 761807949.52
Name of category of provision for bad debts on an individual basis: provision for bad debts on an individual basis
96Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
In RMB
Beginning balance Ending balance
Name Balance of Bad debt Balance of Bad debt Reasons for
Book provisions Book provisions Provision ratio provision
Expected
Customer 1 20023337.51 4004667.50 13872091.97 2774418.39 20.00% credit lossesover the next
12 months
Expected
Customer 2 4994576.03 998915.21 4907406.38 981481.28 20.00% credit lossesover the next
12 months
Customer 3 2797016.81 2797016.81 2797016.81 2797016.81 100.00% Impairmentloss incurred
Customer 4 1692206.15 1692206.15 1682577.66 1682577.66 100.00% Impairmentloss incurred
Customer 5 1298965.36 1298965.36 1298965.36 1298965.36 100.00% Impairmentloss incurred
Others 7658512.65 7658512.65 7596527.14 7596527.14 100.00% Impairmentloss incurred
Tota 38464614.51 18450283.68 32154585.32 17130986.64
Name of category of provision for bad debts on a combination basis: portfolio 1
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
During the credit period 799020250.57 11543406.07 1.44%
1-30 days overdue 4946144.71 74686.79 1.51%
31-90 days overdue 714265.41 494537.36 69.24%
More than 90 days overdue
(with impairment) 44450.16 44450.16 100.00%
Tota 804725110.85 12157080.38
Explanation on the basis for determining the combination:
Based on the industry nature and credit status of customers the degree of credit risk varies with the number of
days overdue so different credit loss rates are adopted for customers with different days overdue.Name of category of provision for bad debts on a combination basis: portfolio 2
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Within 1 year 10191931.71 192633.64 1.89%
1-2 years 253182.00 0.00 0.00%
2-3 years 165684.82 54337.33 32.80%
Over 3 years 67250.00 67250.00 100.00%
Tota 10678048.53 314220.97
Explanation on the basis for determining the combination:
97Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Group customers other than SAPO Photoelectric are mainly leasing customers and the provision for credit
impairment is made according to the aging method combination.If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses:
□Applicable ?Not applicable
As of June 302026 a provision for bad debts was recognized in accordance with the Simplified Expected Credit Loss
Model.Expected credit loss Total expected credit
over the entire life loss over the entire
bad debt provision cycle (excluding cases life cycle (including total
where credit impairment incurred credit
has not occurred) impairment losses)
Balance as at 1 January
16449082.7213513950.9729963033.69
2026
Balance as at 1 January
2026 for the current
period
- - Transfer to
--0.00
credit- impaired
- - Transfer back to
--0.00
non- credit- impaired
Provision for the current
15967249.13-15967249.13
period
Reversal for the current
-16256380.83-16327994.83
period -71614.00
Write- off for the current
--0.00
period
Write- down for the
--0.00
current period
Other changes - - -
Balance as at 30 June 2026 16159951.02 13442336.97 29602287.99
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Category Beginning Endingbalance Accrual Recovery orreversal Write-off Others
balance
Bad debt -
provisions 29963033.69 15967249.13 16327994.83 0.00 0.00 29602287.99
Tota 29963033.69 15967249.13 -16327994.83 0.00 0.00 29602287.99
Significant amounts of recovered or reversed provision for bad debts for the current period:
In RMB
Basis for determining
Unit name Recovered or the ratio of provisionreversed amount Reason for reversal Recovery method for bad debts and its
rationality
There was no significant amount of provision for bad debts recovered or reversed during the reporting period.
98Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(4).Actual write-off of accounts receivable for the current period
In RMB
Rewards for the key management personnel Items Amount of write-off
Including write-off of important accounts receivable:
In RMB
Nature of Whether the fund
Unit name accounts Amount of write- Reasons for
Write-off is generated by
receivable off write-off
procedures
performed related partytransactions
Explanation on write-off of accounts receivable:
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
In RMB
Ratio to the total Ending balance
Ending balances amount of
of provision for
Ending balance Ending balance of accounts ending balance
bad debts of
Unit name of accounts of contract receivable and of accounts
accounts
receivable assets contract assets receivable and
receivable and
contract assets provision for
(%) impairment ofcontract assets
Customer 1 131043895.05 0.00 131043895.05 15.46% 1978762.82
Customer 2 121043891.48 0.00 121043891.48 14.28% 1827762.76
Customer 3 101816999.46 0.00 101816999.46 12.01% 1537436.69
Customer 4 70303881.86 0.00 70303881.86 8.29% 1061588.62
Customer 5 62423965.32 0.00 62423965.32 7.37% 942601.88
Tota 486632633.17 0.00 486632633.17 57.41% 7348152.77
5. Receivables financing
(1) Presentation of receivables financing by category
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Bank acceptance bill 1507659.34 22584820.72
Tota 1507659.34 22584820.72
(2) Disclosure by provision method for bad debts
Recognize a bad debt provision using the expected credit loss model:not have
Basis for stage and bad debt provision accrual ratio:not have
99Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Explanation of the significant change in the carrying amount of receivables financing resulting from
changes in loss provisions for the current period:not have
(3) Provision for bad debts accrued recovered or reversed for the current period
The Group believes that the bank acceptance bills it holds are issued by banks with high credit ratings and carry
no significant credit risk; therefore no provision for bad debts has been made.
(4) The Company's pledged receivables financing at the end of the period
None
(5) Receivables financing endorsed or discounted by the Company and not yet due on the
balance sheet date at the end of the period
At end of the reporting period the Company had no receivables financing with actual write-off.
(7) Increases/decreases and fair value changes of receivables financing for the current period
None
(8) Other explanations
At the end of the reporting period the Group had no pledged receivables financing.
6. Other receivables
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividend receivable 893982.69 0.00
Other receivable 3889594.26 4324973.02
Tota 4783576.95 4324973.02
(1) Interest receivable
1) Classification of interest receivable
None
2) Significant overdue interest
None
100Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3) Disclosure by provision method for bad debts
□Applicable ?Not applicable
4) Provision for bad debts accrued recovered or reversed for the current period
None
5) Actual write-off of interest receivable for the current period
None
(2) Dividends receivable
1) Classification of dividends receivable
In RMB
Project (or investees) Ending balance Beginning balance
Shenzhen South Textile Co. Ltd. 893982.69 0.00
Tota 893982.69 0.00
2) Significant dividends receivable with aging over 1 year
None
3) Disclosure by provision method for bad debts
None
4) Provision for bad debts accrued recovered or reversed for the current period
None
5) Actual write-off of dividends receivable in the current period
There were no dividends receivable with actual write-off during the reporting period.
(3) Other receivables
1) Classification of other receivables by nature of payment
In RMB
Payment nature Ending book balance Beginning book balance
Current payment 14905827.41 15455577.41
Deposit and security deposit 2560250.86 2373756.82
Export rebate 709028.48 709028.48
Reserve funds and employee loans 365128.97 293128.97
Others 3475620.32 3534780.46
101Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Tota 22015856.04 22366272.14
2) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 2952099.94 3292434.09
1-2 years 444764.08 439728.28
2-3 years 179540.31 179540.31
Over 3 years 18439451.71 18454569.46
Including:3 to 4 years 54985.20 54985.20
4 to 5 years 567676.29 567676.29
More than 5 years 17816790.22 17831907.97
Total 22015856.04 22366272.14
3) Disclosure by provision method for bad debts
?Applicable □Not applicable
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category Book Book
Provision Provision
Amount Proportion Amount balance Amount Proportion Amount balance
ratio ratio
Including:
Account
receivable
withdrawal
22015856.04100.00%18126261.7882.33%3889594.2622366272.14100.00%18041299.1280.66%4324973.02
bad debt
provision by
portfolio
Including:
Other
receivables
for which
credit loss
provision is
made 22015856.04 100.00% 18126261.78 82.33% 3889594.26 22366272.14 100.00% 18041299.12 80.66% 4324973.02
according to
the
combination
of credit risk
characteristics
Tota 22015856.04 100.00% 18126261.78 82.33% 3889594.26 22366272.14 100.00% 18041299.12 80.66% 4324973.02
Name of category of provision for bad debts on a portfolio basis: Other receivables with provision for bad debts on a
portfolio basis by credit risk characteristics
In RMB
Name Ending balance
102Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Balance of Book Bad debt provisions Provision ratio
Provision for bad debts
based on credit risk
characteristic combination 22015856.04 18126261.78 82.33%
Provision for other
receivables
Total 22015856.04 18126261.78
Explanation on the basis for determining the combination:
The Group divides other receivables into different combinations based on common credit risk characteristics.Common credit risk characteristics used by the Group include initial recognition date remaining contract term and
length of overdue period.The provision for bad debts made according to the general model of expected credit losses
In RMB
Stage 1 Stage 2 Stage 3
Bad debt provisions Expected credit
Expected credit loss Expected credit loss
losses over the next throughout the throughout the
Tota
12 months duration (without duration (with creditcredit loss) impairment)
Balance as of
January 1 2026 146249.33 87175.92 17807873.87 18041299.12
Balance as at
January 1 2026
forwarded to the
current period
- Transfer to phase II -18371.89 18371.89 0.00 0.00
-Transfer to phase III 0.00 0.00 0.00 0.00
- Reversal to phase II 0.00 0.00 0.00 0.00
- Reversal to phase I 0.00 0.00 0.00 0.00
Provision for the
current period 84893.35 103001.72 2800.00 190695.07
Reversal in this
period -97510.66 0.00 -8221.75 -105732.41
Charge-off in the
current period 0.00 0.00 0.00 0.00
Write-off in the
current period 0.00 0.00 0.00 0.00
Other change 0.00 0.00 0.00 0.00
Balance as of June
302026115260.13208549.5317802452.1218126261.78
Basis for division of each stage and ratio of provision for bad debts
Changes in the book balance of provision for loss with significant changes in the current period
□Applicable ?Not applicable
103Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Category Beginning Endingbalance Accrual Recovery or Transfer or balancereversal write off Others
Bad debt
provisions 18041299.12 190695.07 -105732.41 0.00 0.00 18126261.78
Total 18041299.12 190695.07 -105732.41 0.00 0.00 18126261.78
Reversal or recovery of significant amount of provision for bad debts in the current period:
In RMB
Basis for determining
Unit name Recovered or the ratio of provisionreversed amount Reason for reversal Recovery method for bad debts and its
rationality
There was no provision for bad debts recovery or reversal of significant amount during the reporting period.
5) Other receivables actually write-off in the current period
In RMB
Rewards for the key management personnel Items Amount of write-off
Important other receivables write-off:
In RMB
Whether the fund
Unit name Nature of other Amount of write- Reasons for
Write-off
receivables off write-off procedures
is generated by
performed related partytransactions
Explanations on write-off of other receivables:
There was no other receivables with actual write-off during the reporting period.
6) Other receivables of the top five ending balances collected by debtor
In RMB
Ratio to the total Balance of
Unit name The nature of the Ending balance Category ending balance provision for badamount of other debts as at the
receivables end of the period
Customer 1 Intercoursepayment 11389044.60 Over 3 years 51.73% 11389044.60
Customer 2. Intercoursepayment 1800000.00 Over 3 years 8.18% 1800000.00
Customer 3 Intercoursepayment 1018295.37 Over 3 years 4.63% 1018295.37
104Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Customer 4 Others 980461.06 Over 3 years 4.45% 980461.06
Customer 5 Intercoursepayment 592420.00 Over 3 years 2.69% 592420.00
Total 15780221.03 71.68% 15780221.03
7) Reported as other receivables due to centralized fund management
None
7. Advances to suppliers
(1) Advances to suppliers are listed by aging
In RMB
Ending balance Beginning balance
Category
Amount Proportion Amount Proportion
Within 1 year 36293418.84 99.26% 28531062.77 97.91%
1-2 years 41400.00 0.11% 440626.72 1.51%
2-3 years 125584.76 0.34% 99375.47 0.34%
Over 3 years 104692.53 0.29% 70145.61 0.24%
Total 36565096.13 29141210.57
Explanation of the reasons for the delayed settlement of advances to suppliers with an aging of over 1 year and
significant amounts:
At the end of the reporting period the Group had no significant prepayments with an aging of more than 1 year
and an important amount.
(2) Prepayment status of the top five year-end balances collected by prepaid objects
As at the end of the current period the aggregate amount of the top five prepayment balances by counterparty
was RMB 25300555.35 representing 69.19% of the total prepayment balance.
8. Inventories
Whether the company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventories Classification
In RMB
Ending balance Beginning balance
Rewards for the Provision for Provision for
key inventory inventory
management Balance of Book depreciation or Book balance Balance of Book depreciation or Book balance
personnel Items provision for provision for
impairment of impairment of
105Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
contract contract
performance performance
costs costs
Raw materials 603672347.51 61437473.20 542234874.31 507546211.97 36085589.06 471460622.91
Processing
products 357934515.85 35185960.87 322748554.98 356737261.98 58000907.47 298736354.51
Inventories of
goods 147351124.24 44638441.69 102712682.55 140769463.04 32736881.09 108032581.95
Commissioned
materials 3111611.43 583458.29 2528153.14 6920970.30 508174.16 6412796.14
Total 1112069599.03 141845334.05 970224264.98 1011973907.29 127331551.78 884642355.51
(2) Data resources recognized as inventories
None
(3) Provision for inventory depreciation and provision for impairment of contract performance
costs
In RMB
Rewards for Increase in the current period Decrease in the current period
the key
management Beginning Ending
personnel balance Accrual Others Write-off Others balance
Items
Raw materials 36085589.06 25351884.14 0.00 0.00 0.00 61437473.20
Processing
products 58000907.47 0.00 0.00 22814946.60 0.00 35185960.87
Inventories of
goods 32736881.09 55852877.52 0.00 43951316.92 0.00 44638441.69
Commissione
d materials 508174.16 75284.13 0.00 0.00 0.00 583458.29
Total 127331551.78 81280045.79 0.00 66766263.52 0.00
141845334.0
5
The specific basis for determining the net realizable value of inventories and the reasons for the provision for the
inventories price decline reversed or resold during the period:
Reasons for reversing
Rewards for the key management The specific basis for determining the net or writing off for
personnel Items realizable value inventory depreciation
in the current period
The net realizable value is determined by the
Raw materials work-in-progress estimated selling price of the relevant finished
product and consignment materials product less the estimated costs to be incurred
Received or sold in the
at completion and less the estimated selling current period
expenses and the relevant taxes
The net realizable value of the inventory is It is sold or market
Finished products determined by the estimated selling price minusthe estimated selling expenses and related value is recovered in
taxes the current period
Inventory depreciation provision accrued by portfolio
In RMB
106Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Ending Beginning
Accrual Accrual
Portfolio name Ending Provision for proportion of Beginning Provision for proportion of
balance price fall depreciation balance price fall depreciation
provision provision
Accrual standard of inventory depreciation provision accrued by portfolio
(4)Explanation on the ending balance of inventories containing the capitalization amount of
borrowing costs
At the end of the reporting period there was no amount of capitalization of borrowing costs.
(5)Explanation on the amortization amount of contract performance costs in the current period
None
9. Other current assets
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Receivable return cost 15149227.21 29008785.23
VAT to be deducted and input tax to
be certified 34907040.36 56593276.80
Advance payment of income tax 47034.59 47034.59
Total 50103302.16 85649096.62
Relevant information on compensating assets
10. Other equity instrument investments
In RMB
Reasons
Gains Losses
Dividend designated as
Gains accrued Loss accrued to accumulated accumulated
income being
to other other into other into other
Beginning recognized measured at
Name comprehensive comprehensive comprehensive comprehensive Ending balance
balance during the fair value
income in the income in the income at the income at the
current through other
current period current period end of the end of the
period comprehensive
current period current period
income
Planned to be
Hualian
held by the
Development Group 123203400.00 0.00 0.00 120603400.00 0.00 0.00 123203400.00
Group for a
Co. Ltd.long time.Planned to be
Shenzhen Dailishi held by the
20921200.000.000.0018361343.740.00550000.0020921200.00
Underwear Co. Ltd. Group for a
long time.Shenzhen South Planned to be
12712800.000.000.0011212800.000.00893982.6912712800.00
Textile Co. Ltd. held by the
107Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Group for a
long time.Planned to be
Shenzhen Xinfang held by the
2424200.000.000.001900200.000.00200000.002424200.00
Knitting Co. Ltd. Group for a
long time.Planned to be
Jintian
held by the
Industry(Group)Co. 0.00 0.00 0.00 0.00 -14831681.50 0.00 0.00
Group for a
Ltd.long time.Total 159261600.00 0.00 0.00 152077743.74 -14831681.50 1643982.69 159261600.00
There is no derecognition of other equity instrument investments this period.
11. Long-term equity investments
In RMB
Increase/decrease in this period
Balance of
Beginning Cash
Beginning Equity method Adjustment of provision for
balance of dividends or Withdrawal of Ending balance
Name balance (book Add Decreased affirmative other Other equity impairment
provision for profits impairment Others (book value)
value) investment investment profit and loss comprehensive changes as at the end
impairment declared to provision
on investments income of the period
be paid
I. Joint ventures
Shenzhen
Guanhua
Printing & 104274952.84 0.00 0.00 0.00 -3449190.76 0.00 0.00 0.00 0.00 0.00 100825762.08 0.00
Dyeing Co.Ltd.Subtotal 104274952.84 0.00 0.00 0.00 -3449190.76 0.00 0.00 0.00 0.00 0.00 100825762.08 0.00
2. Affiliated Company
Shenzhen
Changlianfa
Printing and 3308634.07 0.00 0.00 0.00 137757.74 0.00 0.00 -241500.00 0.00 0.00 3204891.81 0.00
dyeing
Company
Subtotal 3308634.07 0.00 0.00 0.00 137757.74 0.00 0.00 -241500.00 0.00 0.00 3204891.81 0.00
Total 107583586.91 0.00 0.00 0.00 -3311433.02 0.00 0.00 -241500.00 0.00 0.00 104030653.89 0.00
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable ?Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
108Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
12. Investment properties
(1) Investment properties measured at the cost mode
?Applicable □Not applicable
In RMB
Rewards for the key management personnel Items House Building Tota
I. Original price
1. Beginning balance 349464348.40 349464348.40
2. Increase in the current period 0.00 0.00
(1) Outsourcing 0.00 0.00
(2) Transfer from inventories fixed assets and construction in
progress 0.00 0.00
(3) Increase in business combination 0.00 0.00
3. Decrease in the current period 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
4. Ending balance 349464348.40 349464348.40
II.Accumulated amortization
1. Beginning balance 243733566.77 243733566.77
2. Increase in the current period 4780252.98 4780252.98
(1) Provision or amortization 4780252.98 4780252.98
3. Decrease in the current period 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
4. Ending balance 248513819.75 248513819.75
1. Beginning balance 0.00 0.00
2. Increase in the current period 0.00 0.00
(1) Provision 0.00 0.00
3. Decrease in the current period 0.00 0.00
(1) Disposal 0.00 0.00
(2) Other transfers out 0.00 0.00
4. Ending balance 0.00 0.00
4. Book value
1. Book value as at the end of the period 100950528.65 100950528.65
2. Book value as at the beginning of the period 105730781.63 105730781.63
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable ?Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
109Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
(2) Investment properties measured by fair value
□Applicable ?Not applicable
(3) Conversion to investment properties and measurement at fair value
None
(4) Investment properties without certificate of title
In RMB
Rewards for the key management
personnel Items Book balance Reason
Houses and Building 9434445.01 Unable to apply for warrants due tohistorical reasons
13. Fixed assets
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Fixed asset 1541311409.66 1657314603.81
Total 1541311409.66 1657314603.81
(1) Fixed assets
In RMB
Rewards for the
key Houses and Machinery
management buildings equipment Transportations
Other
equipment Tota
personnel Items
I. Original price
1. Beginning 2703423467.8 3503024316.7
balance 736114240.78 7 18166617.50 45319990.55 0
2. Increase in
the current 0.00 4385368.19 0.00 649280.10 5034648.29
period
(1) Purchase 0.00 4385368.19 0.00 649280.10 5034648.29
(2) Transfer from
construction in 0.00 0.00 0.00 0.00 0.00
progress
(3) Increase in 0.00 0.00 0.00 0.00 0.00
110Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
business
combination
3. Decrease in
the current 6737926.76 758351.52 8761.06 233896.93 7738936.27
period
(1) Disposal or
scrapping 0.00 758351.52 8761.06 233896.93 1001009.51
(2) Others 6737926.76 0.00 0.00 0.00 6737926.76
4. Ending 729376314.02 2707050484.5balance 4 18157856.44 45735373.72
3500320028.7
2
II. Accumulated
depreciation
1. Beginning 1532553940.8
balance 235212069.34 3 11073636.77 38668957.00
1817508603.9
4
2. Increase in
the current 11402854.79 100030401.64 1128123.49 1682626.66 114244006.58
period
(1) Provision 11402854.79 100030401.64 1128123.49 1682626.66 114244006.58
3. Decrease in
the current 0.00 451750.48 2014.98 220332.63 674098.09
period
(1) Disposal or
scrapping 0.00 100030401.64 2014.98 1682626.66 114244006.58
4. Ending
balance 246614924.13
1632132591.9
912199745.2840131251.03
1931078512.4
3
III. Impairment
provision
1. Beginning
balance 9820261.26 18078290.43 6126.41 296430.85 28201108.95
2. Increase in
the current 0.00 0.00 0.00 0.00 0.00
period
(1) Provision 0.00 0.00 0.00 0.00 0.00
3. Decrease in
the current 0.00 266453.89 0.00 4548.43 271002.32
period
(1) Disposal or
scrapping 0.00 266453.89 0.00 4548.43 271002.32
4. Ending
balance 9820261.26 17811836.54 6126.41 291882.42 27930106.63
4. Book value
1. Book value as
at the end of the 472941128.63 1057106056.01 5951984.75 5312240.27
1541311409.6
period 6
2. Book value as
at the beginning 491081910.18 1152791236.61 7086854.32 6354602.70
1657314603.8
of the period 1
111Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Temporarily idle fixed assets
None
(3)Fixed assets leased out through operating leases
None
(4) Fixed assets without certificate of title
In RMB
Rewards for the key management Book balance Reason for failure to properly handlepersonnel Items the certificate of title
House Building 10249847.57 Unable to apply for warrants due tohistorical reasons
Other explanations
At the end of the reporting period the Group's fixed assets mortgaged for bank borrowings are detailed in "21.Assets with restricted ownership or right of use".
(5) Impairment test of fixed assets
□Applicable ?Not applicable
(6) Disposal of fixed assets
None
14. Construction in progress
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Construction in progress 204595310.01 179954389.78
Total 204595310.01 179954389.78
(1) Construction in progress situation
In RMB
Rewards for Ending balance Beginning balance
the key
management Balance of Withdrawn Balance of Withdrawn
personnel Book impairment Book balance Book impairment Book balance
Items provision provision
Project of the
8-Line
1.49-m-Width 202451309.45 0.00 202451309.45 179954389.78 0.00 179954389.78
Polarizer
112Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Production Line
Odd- job Works 2144000.56 0.00 2144000.56 0.00 0.00 0.00
Total 204595310.01 0.00 204595310.01 179954389.78 0.00 179954389.78
(2) Changes of significant construction in progress in the current period
In RMB
Ratio of Including:
Transfer into Accumulated Interest
Other decreases accumulated Capitalized
Beginning Increase in the fixed assets in Progress of capitalization capitalization
Name Budget in the current Ending balance project amount of Capital Source
balance current period the current construction amount of rate for the
period investment in interest in the
period interest current period
budget (%) current period
1.49m-wide
polarizer Own- funds and
1333600000.00179954389.7822496919.670.000.00202451309.4515.18%15.18%1929917.531753511.242.24%
production line Borrowings
project (Line 8)
Total 1333600000.00 179954389.78 22496919.67 0.00 0.00 202451309.45 1929917.53 1753511.24 2.24%
(3) Provision for impairment of construction in progress in the current period
None
(4) Impairment test of construction in progress
□Applicable ?Not applicable
(5) Project materials
None
15. Right-of-use assets
(1) Right-of-use assets status
In RMB
Rewards for the key
management personnel Houses and buildings Machinery equipment Tota
Items
I. Original price
1. Beginning balance 44940248.74 1988764.44 46929013.18
2. Increase in the
current period 3836984.51 777400.55 4614385.06
(1) Addition 3836984.51 777400.55 4614385.06
3. Decrease in the
current period 0.00 0.00 0.00
4. Ending balance 48777233.25 2766164.99 51543398.24
II. Accumulated
depreciation
113Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
1. Beginning balance 28998351.01 1035818.57 30034169.58
2. Increase in the
current period 4635681.33 455849.67 5091531.00
(1) Provision 4635681.33 455849.67 5091531.00
3. Decrease in the
current period 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00
4. Ending balance 33634032.34 1491668.24 35125700.58
III. Impairment provision
1. Beginning balance 0.00 0.00 0.00
2. Increase in the
current period 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00
3. Decrease in the
current period 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00
4. Book value
1. Book value as at the
end of the period 15143200.91 1274496.75 16417697.66
2. Book value as at the
beginning of the period 15941897.73 952945.87 16894843.60
(2) Impairment test of right-of-use assets
□Applicable ?Not applicable
16. Intangible assets
(1) Intangible assets situation
In RMB
Rewards for the key
management personnel Items Land use right Patent right Software Tota
I. Original price
1. Beginning balance 48258239.00 11825200.00 23290903.11 83374342.11
2. Increase in the current period 49131000.00 0.00 193000.00 49324000.00
(1) Purchase 49131000.00 0.00 193000.00 49324000.00
(2) Internal R&D 0.00 0.00 0.00 0.00
(3) Increase in business
combination 0.00 0.00 0.00 0.00
114Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Decrease in the current
period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 97389239.00 11825200.00 23483903.11 132698342.11
II.Accumulated amortization
1. Beginning balance 17948844.31 11825200.00 22375699.60 52149743.91
2. Increase in the current period 1256771.50 0.00 179311.83 1436083.33
(1) Provision 1256771.50 0.00 179311.83 1436083.33
3. Decrease in the current
period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 19205615.81 11825200.00 22555011.43 53585827.24
III. Impairment provision
1. Beginning balance 0.00 0.00 0.00 0.00
2. Increase in the current period 0.00 0.00 0.00 0.00
(1) Provision 0.00 0.00 0.00 0.00
3. Decrease in the current
period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
4. Book value
1. Book value as at the end of
the period 78183623.19 0.00 928891.68 79112514.87
2. Book value as at the
beginning of the period 30309394.69 0.00 915203.51 31224598.20
The ratio of intangible assets formed through the Company's internal research and development to the balance of
intangible assets at the end of the current period is 0.00%
(2) Data resources recognized as intangible assets
None
(3) Details of land use right without certificate of title
None
(4) Impairment test of intangible assets
□Applicable ?Not applicable
115Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
17. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investee or matters
that form goodwill Beginning balance
Increase in the Decrease in the Ending
current period current period balance
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
Shenzhen Beauty Century
Garment Co. Ltd. 2167341.21 0.00 0.00 2167341.21
Total 11782099.76 0.00 0.00 11782099.76
(2) Provision for impairment of goodwill
In RMB
Name of the investee or matters Beginning balance Increase in the Decrease in the Endingthat form goodwill current period current period balance
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
Shenzhen Beauty Century
Garment Co. Ltd. 2167341.21 0.00 0.00 2167341.21
Total 11782099.76 0.00 0.00 11782099.76
(3) Relevant information on the asset group or portfolio of asset groups of the goodwill
belongs to
None
(4) Specific determination method of recoverable amount
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable ?Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
None
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
None
116Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(5) Completion of performance commitment and corresponding goodwill impairment
There is a performance commitment when the goodwill is formed and the reporting period or the previous period of the
reporting period is within the performance commitment period
□Applicable ?Not applicable
Other explanations
18. Long-term deferred expenses
In RMB
Rewards for the Amount
key management Beginning Increase in the Other reduction
personnel Items balance current period
amortized in the
current period amount
Ending balance
Decoration and
facilities 7030847.01 2200664.43 1105679.10 0.00 8125832.34
renovation fee
Total 7030847.01 2200664.43 1105679.10 0.00 8125832.34
19. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets without offset
In RMB
Rewards for the key Ending balance Beginning balance
management Deductible temporary Deferred income tax Deductible temporary Deferred income tax
personnel Items difference assets difference assets
Asset impairment
provision 171796107.83 25769416.16 151835215.23 22775282.28
Unrealized profit
from internal 1153906.28 288476.57 1967734.40 295160.16
transactions
Deductible loss 84464489.24 12669673.39 84464489.24 12669673.38
Credit loss provision 46792975.53 8560854.70 47068758.51 8605770.45
27.Payable
Employee wage 4469827.00 1117456.75 4469827.00 1117456.75
34. Deferred income 73833609.93 11075041.49 83392067.07 12508810.06
Changes in fair value
of investment in
other equity 14831681.50 3707920.38 14831681.50 3707920.38
instruments
33. Lease liabilities 17324145.36 2838678.87 17683257.08 2907352.60
Changes in fair value
of derivative financial 572148.11 85822.22 3362200.19 504330.03
liabilities
27. Estimated
liabilities 22114514.44 3317177.17 14370007.84 2155501.18
Total 437353405.22 69430517.70 423445238.06 67247257.27
117Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Deferred tax liabilities without offset
In RMB
Rewards for the key Ending balance Beginning balance
management Deductible temporary Deferred income tax Deductible temporary Deferred income tax
personnel Items difference assets difference assets
Changes in fair value
of investment in
other equity 152077743.74 38019435.94 152077743.74 38019435.94
instruments
The difference
between the initial
recognition cost of
long-term equity 62083693.36 15520923.34 62083693.36 15520923.34
investment and tax
basis
Rent receivable 5405215.87 1351303.97 6414441.92 1603610.48
15. Right to use
assets 16417697.66 2698364.34 16894843.60 2784125.41
Changes in fair value
of financial assets 7165205.48 1791301.38 2425205.47 606301.37
held for trading
Total 243149556.11 59381328.97 239895928.09 58534396.54
(3) Deferred tax assets or liabilities listed net amount after write-offs
In RMB
Rewards for the key Deduction amount of Ending balance of Deduction amount of Beginning balance of
management deferred tax assets deferred tax assets deferred tax assets and deferred tax assets
personnel Items and liabilities at the or liabilities after liabilities from the or liabilities afterend of the period write-off beginning of the period write-off
Deferred income tax
assets -11374490.06 58056027.64 -11469966.38 55777290.89
Deferred income tax
assets -11374490.06 48006838.91 -11469966.38 47064430.16
(4) Details of unconfirmed deferred tax assets
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Deductible temporary difference 3040068.92 9402132.77
Deductible loss 273168348.51 325441799.20
Total 276208417.43 334843931.97
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following
years
In RMB
Year Ending amount Beginning amount Remark
118Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
202688798039.53126219867.46
202710016728.6010067397.50
202813479346.6613479346.66
202985250910.8385276427.23
203014279844.1414316545.70
20310.000.00
20320.000.00
203350553910.3450960399.54
20340.000.00
Year 2035 10789568.41 25121815.11
Total 273168348.51 325441799.20
Other explanations
Based on the Group's profit forecast for the future periods the Group believes that it is highly probable to obtain
sufficient taxable income to utilize the above-mentioned deductible temporary differences and deductible losses in the
future periods so the relevant deferred tax assets are recognized.
20. Other non-current assets
In RMB
Rewards for the Ending balance Beginning balance
key
Balance of Withdrawn Withdrawnmanagement
Book impairment Book balance
Balance of impairment Book balance
personnel Items provision Book provision
Prepayment for
engineering and 71281883.46 0.00 71281883.46 11326699.63 0.00 11326699.63
equipment
Investment
funds to be 25760086.27 0.00 25760086.27 25760086.27 0.00 25760086.27
liquidated
Total 97041969.73 0.00 97041969.73 37086785.90 0.00 37086785.90
21. Assets with restrictions on the ownership or right of use
In RMB
Rewards for the Ending Beginning
key
management Restricted Restricted Restricted RestrictedBalance of Book Book balance Balance of Book Book balance
personnel Items circumstances circumstances circumstances circumstances
Account Account
Restricted right Restricted right
Monetary funds 15719606.07 15719606.07 Freezing and 685396.65 685396.65 Freezing and
of use of use
Margin Margin
The The
Notes Restricted right endorsement of Restricted right endorsement of
33936675.3733936675.3753001736.0753001736.07
receivable of use the note is not of use the note is not
terminated terminated
Restricted right Restricted right
Fixed asset 575157823.88 417626862.41 Mortgage 581895750.64 432224852.53 Mortgage
of use of use
Restricted right Restricted right
Intangible asset 44770083.00 29867438.47 Mortgage 44770083.00 30309394.69 Mortgage
of use of use
Total 669584.188.32 497150582.32 680352966.36 516221379.94
119Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
22. Derivative financial liabilities
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Forward foreign exchange contracts 572148.11 4071800.19
Total 572148.11 4071800.19
23. Notes payable
In RMB
Balance at the end of this year Ending balance Beginning balance
Bank acceptance bill 14734317.72 0.00
Total 14734317.72 0.00
At the end of the current period the Totall amount of matured but unpaid notes payable was RMB 0.00. The
reason for non-payment upon maturity is that the Group had no matured but unpaid notes payable at the end of the
reporting period.
24. Accounts payable
(1) Presentation of accounts payable
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Goods 462049699.32 315492749.54
Service charge 12003862.74 17809719.59
Subcontracting payment 2577172.94 8954077.38
Loyalities 1803564.00 1949556.00
Others 1164798.76 450733.38
Total 479599097.76 344656835.89
(2) Significant accounts payable aging more than one year or overdue
In RMB
Rewards for the key management Ending balance Reason for no settlement or carrying-personnel Items forward
Other explanations:
At the end of the reporting period the Group had no significant accounts payable with aging over 1 year or
overdue.
25. Other payables
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
120Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Other payables 142982024.31 159826234.73
Total 142982024.31 159826234.73
(1) Interest payable
None
(2) Dividends payable
None
(3) Other payable
1) List other payable by nature of payment
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Engineering equipment payment 29521966.69 43922031.06
Current payment 53721235.92 46981495.00
Deposit and security deposit 50173501.99 57213864.04
Others 9565319.71 11708844.63
Total 142982024.31 159826234.73
2) Other significant payable aging over one year or overdue
In RMB
Rewards for the key management Ending balance Reason for no settlement or carrying-personnel Items forward
Other explanations
At the end of the reporting period the Group had no other significant accounts payable with aging over 1 year or
overdue.
26. Advances from customers
(1) Presentation of advances from customers
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Rent and other 781506.37 769227.07
Total 781506.37 769227.07
(2) Important advances from customers with aging more than 1 year or overdue
At the end of the reporting period the Group had no significant accounts receivable with aging over 1 year or
overdue.
121Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
27. Contract liabilities
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Goods 2650257.63 3132419.01
Total 2650257.63 3132419.01
Significant contract liabilities with aging over 1 year
None
Amount and reasons for significant changes in book value during the reporting period
None
28. Employee compensation payable
(1) Presentation of employee compensation payable
In RMB
Rewards for the key
management Beginning balance Increase in the Decrease in the
personnel Items current period current period
Ending balance
I. Short-term
compensation 51056793.38 118706587.17 128582164.04 41181216.51
II. Post-employment
benefits-defined 0.00 11652130.37 11652130.37 0.00
contribution plans
III. Dismissal benefits 1590522.36 0.00 1101097.88 489424.48
Total 52647315.74 130358717.54 141335392.29 41670640.99
(2) Presentation of short-term compensation
In RMB
Rewards for the key
management Beginning balance Increase in the Decrease in the
personnel Items current period current period
Ending balance
1. Salaries bonuses
allowances and 48478820.60 104279632.12 114207445.78 38551006.94
subsidies
2. Employee benefits 29484.50 3827512.19 3770695.69 86301.00
3. Social insurance
premiums 0.00 2987519.89 2987519.89 0.00
Including:Medical
insurance 0.00 2141454.85 2141454.85 0.00
Work injury
insurance 0.00 489254.50 489254.50 0.00
Maternity insurance 0.00 356810.54 356810.54 0.00
122Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Housing provident
funds 0.00 5298482.66 5298482.66 0.00
5. Trade union funds
and employee 2548488.28 2313440.31 2318020.02 2543908.57
education expenses
Total 51056793.38 118706587.17 128582164.04 41181216.51
(3) Presentation of defined contribution plans
In RMB
Rewards for the key
management Beginning balance Increase in the Decrease in the
personnel Items current period current period
Ending balance
1. Basic endowment
insurance premiums 0.00 9805179.70 9805179.70 0.00
2. Unemployment
insurance premiums 0.00 400691.43 400691.43 0.00
3. Enterprise annuity
payment 0.00 1446259.24 1446259.24 0.00
Total 0.00 11652130.37 11652130.37 0.00
Other explanations
The Group participates in pension insurance and unemployment insurance plans established by government
agencies according to regulations and according to the plans the Group pays fees to these plans according to the
prescribed standards. In addition to the above-mentioned monthly deposit fees the Group will no longer assume
further payment obligations. The corresponding expenses are included in the current profits and losses or the related
asset costs when incurred.The Group shall pay RMB 9805179.70 and RMB 400691.43 to the endowment insurance and unemployment
insurance plans respectively for the current year (2025 H1: RMB 9389734.62 and RMB 407578.97). As of June 30
2026 the Group has fully paid the amount of pension insurance and unemployment insurance plans payable during
the reporting period.
29. Taxes payable
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
VAT 516019.70 251065.10
Consumption tax 0.00 0.00
Enterprise Income tax 3649596.34 3763975.34
Individual Income tax 1005395.32 670592.00
Urban maintenance and construction
tax 0.00 0.00
Other taxes 5055035.51 1121186.11
Total 10226046.87 5806818.55
123Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
30. Non-current liabilities maturing within one year
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Long-term borrowings maturing within
one year 60585978.70 48033108.58
Lease liabilities maturing within one year 6618446.89 7267259.91
Estimated liabilities due within one year 10040486.12 10664297.79
Total 77244911.71 65964666.28
31. Other current liabilities
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Return payable 17253721.89 31679349.15
Endorsed and unexpired acceptance bill 33936675.37 53001736.07
Product quality assurance 12074028.32 3705710.05
Total 63264425.58 88386795.27
Other explanations:
None
32. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Credit loans 156082785.81 141852077.65
Guaranteed loan (note) 147124355.94 167899085.74
Less: Long-term loans due within one
year -60585978.70 -48033108.58
Total 242621163.05 261718054.81
Description of the classification of long-term borrowings:
Note: SAPO Photoelectric a subsidiary of the Company obtained the loan by mortgaging the real estate such as
the plant it held and the Company and Hengmei Optoelectronics Co. Ltd. provided 60% and 40% joint and several
liability guarantee for the loan respectively.Other explanations including interest rate range:
1. Shenzhen Sapo Photoelectric Co. Ltd. a subsidiary of the Company obtained long-term borrowings by
pledging its real estate properties such as plants and the interest rate of the long-term borrowings ranges from 3.26%
to 3.31%.
2. Shenzhen Sapo Photoelectric Co. Ltd. a subsidiary of the Company obtained credit borrowings and the
interest rate of the credit borrowings is 2.24%.
124Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
33. Lease liabilities
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
33. Lease liabilities 17324145.36 17683257.08
Less: Lease liabilities due within one
year -6618446.89 -7267259.91
Total 10705698.47 10415997.17
Other explanations:
The Group's lease liabilities are analysed by the maturity of the undiscounted remaining contractual obligations as
follows:
Rewards for the key
management personnel Within 1 month 1 to 3 months 3 to 12 More than 5
Items months
1 to 5 years years Tota
Ending balance 998254.36 1748414.73 5102153.56 9772147.28 2809029.24 20429999.17
Beginning balance 1049935.94 2078351.34 4688581.14 9705967.44 1937423.13 19460258.99
34. Deferred income
In RMB
Rewards for the
key management Beginning Increase in the Decrease in the
personnel Items balance current period current period
Ending balance Reason
(IX) Government Received the
subsidies 83469949.03 343732.72 9908067.72 73905614.03 governmentsubsidies
Total 83469949.03 343732.72 9908067.72 73905614.03
Other explanations:
None
35. Share capital
In RMB
Changes during the period (+ -)
Beginning Capitalization
balance Issuance of Bonus Ending balance
new share shares of public Others Subtotalreserve
Total of
capital 506521849.00 0.00 0.00 0.00 0.00 0.00 506521849.00
shares
125Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
36. Capital reserve
In RMB
Rewards for the key
management Beginning balance Increase in the Decrease in the
personnel Items current period current period
Ending balance
Capital premium
(share premium) 1826482608.54 0.00 0.00 1826482608.54
Other capital
reserves 135117216.09 0.00 0.00 135117216.09
Total 1961599824.63 0.00 0.00 1961599824.63
37. Other comprehensive income
In RMB
Amount in the current period
Less:Amount
transferred into Less:Prior
Rewards for the profit and loss in period included
key Beginning Amount before the current in other After-taxAfter-tax
management balance income tax in period that composite Less:Income tax attribute to
Ending balance
attribute to the
personnel Items the current recognized into income transfer expenses minorityparent company
period other to retained shareholder
comprehensive income in the
income in prior current period
period
I. Other
comprehensive
income that
102271832.320.000.000.000.000.000.00102271832.32
cannot be
reclassified into
profit or loss
Changes in fair
value of
investment in 102271832.32 0.00 0.00 0.00 0.00 0.00 0.00 102271832.32
other equity
instruments
Total of other
comprehensive 102271832.32 0.00 0.00 0.00 0.00 0.00 0.00 102271832.32
income
38. Surplus reserves
In RMB
Rewards for the key
management Beginning balance Increase in the Decrease in the
personnel Items current period current period
Ending balance
Statutory surplus
reserve 106805904.93 0.00 0.00 106805904.93
Total 106805904.93 0.00 0.00 106805904.93
126Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
39. Undistributed profits
In RMB
Rewards for the key management
personnel Items Current period Previous period
Retained earnings as at the end of
the previous period before the 302520158.30 272608113.66
adjustment
Adjustment of total undistributed
profit at the beginning of the period 0.00 0.00
(+ for increase and - for decrease)
Undistributed profits at the beginning
of the period after adjustment 302520158.30 272608113.66
Plus: Net profit attributable to owners
of the parent company in this period 50776164.37 68418663.02
Offsetting losses with capital
reserve 0.00 0.00
Less: Withdrawal of statutory surplus
reserve 0.00 2543589.29
Withdrawal of discretionary
surplus reserves 0.00 0.00
Withdrawal of general risk
reserves 0.00 0.00
Common stock dividends
payable 24313030.25 35963029.09
Ordinary share dividends
transferred to share capital 0.00 0.00
Undistributed profits as at the end of
the period 328983292.42 302520158.30
Details of adjustment to undistributed profits as at the beginning of the period:
1) Due to the retroactive adjustment of the Accounting Standards for Business Enterprises and its related new
regulations the opening undistributed profits was RMB0.
2) Due to the change in accounting policies the opening undistributed profits was RMB0.
3) The correction of significant accounting errors has influenced the undistributed opening profit by RMB 0.00.
4) Due to the change of consolidation scope caused by the same control the opening undistributed profits was
RMB0.
5) Other adjustments have influenced the undistributed opening profit by RMB 0.00 in total.
40. Operating revenue and operating costs
In RMB
Rewards for the key Amount in the current period Amount in the previous period
management
personnel Items Business income Business cost Business income Business cost
Income from Main
Business 1565592671.28 1307726946.02 1566433554.09 1333183441.76
127Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Other business 23130526.86 14889232.70 34048072.22 29329292.33
Total 1588723198.14 1322616178.72 1600481626.31 1362512734.09
Breakdown of operating revenue and operating costs:
In RMB
Division 1 Division 2 Tota
Contract classification
Turnover Operation cost Turnover Operation cost Turnover Operation cost
Business type 1513251246.96 1295208878.78 75471951.18 27407299.94 1588723198.14 1322616178.72
Including:
Polarizer sales 1513251246.96 1295208878.78 0.00 0.00 1513251246.96 1295208878.78
Lease and Management of
0.000.0075471951.1827407299.9475471951.1827407299.94
Property
Classification by business area 1513251246.96 1295208878.78 75471951.18 27407299.94 1588723198.14 1322616178.72
Including:
Domestic 1291705728.14 1106552128.67 75471951.18 27407299.94 1367177679.32 1133959428.61
Overseas 221545518.82 188656750.11 0.00 0.00 221545518.82 188656750.11
Total 1513251246.96 1295208878.78 75471951.18 27407299.94 1588723198.14 1322616178.72
Other explanations
The Group's businesses are mainly the production and sales of polarizers. For goods sold to customers the
Group recognizes income when the control of the goods is transferred that is when the goods are delivered to the
designated place of the other party and signed by the other party. Since the delivery of goods to customers represents
the right to unconditionally receive the contract consideration the maturity of the money only depends on the passage
of time so the Group recognizes a receivable when the goods are delivered to professional customers. When the
customer prepays the payment the Group recognizes the transaction amount received as a contractual liability until
the goods are delivered to the customer.The Group provides property and leasing services to customers which is a performance obligation to be fulfilled
within a certain period of time. The Group recognizes income in the process of providing property and leasing services.Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been signed but not
performed or not fully performed yet at the end of the reporting period is RMB 2650257.63 of which RMB
2650257.63 is expected to be recognized as revenue in 2026 RMB0.00 is expected to be recognized in 2027 and
RMB0.00 is expected to be recognized in 2028.
41. Taxes and surcharges
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Urban maintenance and construction
tax 171360.72 186779.06
Surcharge for education 122400.41 132989.76
Property tax 4320491.52 4270965.18
128Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Land use taxes 185694.72 185694.72
Vehicle and vessel use tax 2040.00 1170.00
Stamp duty 920363.58 879283.21
Others 778.95 2179.87
Total 5723129.90 5659061.80
42. G&A expenses
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Employee remuneration 47667252.38 43886236.10
Depreciation and amortization cost 6250549.91 8075177.45
Leasing and utilities 1161014.58 1318905.59
Intermediary fees 1122559.54 1285128.08
Travel expenses 218911.51 252585.67
Office expenses 490701.64 376182.51
Business entertainment 382590.68 358372.72
Others 3610165.09 4079976.42
Total 60903745.33 59632564.54
43. Selling and distribution expenses
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Employee remuneration 6387288.91 7148494.80
Sales service charge 6217672.93 5822600.27
Others 3109974.27 1973390.12
Business entertainment 593939.93 542128.76
Travel expenses 406698.24 544505.33
Total 16715574.28 16031119.28
44. R&D expenses
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Employee remuneration 9356296.44 8472938.45
Material consumption 38745617.07 42300970.33
Depreciation 769598.45 1239700.65
Others 543334.80 726136.76
Total 49414846.76 52739746.19
45. Financial expenses
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Interest expenses (Note) 2863362.87 3666950.38
129Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Interest income -1433948.01 -2493076.60
Profit or loss on exchange -7005018.25 20562319.66
Handling fees and others 611817.78 932295.46
Total -4963785.61 22668488.90
Other explanations
Note: During the reporting period the interest expense of the lease liabilities was RMB 358284.25.
46. Other income
In RMB
Source of other income Amount in the current period Amount in the previous period
(IX) Government subsidies 9908067.72 8700501.44
Tax subsidy 7291977.68 9331437.35
Others 167003.45 130123.63
Total 17367048.85 18162062.42
47. Gains from changes in fair value
In RMB
Sources of income from changes in
fair value Amount in the current period Amount in the previous period
Transactional financial assets 7165205.48 5127945.21
Derivative financial liabilities -572148.11 783062.42
Total 6593057.37 5911007.63
48. Investment income
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Income from long-term equity
investment measured by adopting -3311433.02 -3645599.07
the equity method
Investment income of trading
financial assets during the holding 2462280.90 3345206.16
period
Dividend income from investments in
other equity instrument during the 1643982.69 748000.00
holding period
Investment income (loss) from
derecognition of derivative financial -4334736.33 -317500.00
liabilities
Total -3539905.76 130107.09
49. Credit loss
In RMB
Rewards for the key management Amount in the current period Amount in the previous period
130Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
personnel Items
Losses from bad debts of accounts
receivable 360745.70 815033.69
Bad debt loss of other receivables -84962.66 -6.04
Total 275783.04 815027.65
50. Assets impairment loss
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
I. Inventories depreciation loss and
contract performance cost -79106067.18 -55273530.83
impairment losses
Total -79106067.18 -55273530.83
51. Gains from disposal of assets
In RMB
Source of gains from disposal of
assets Amount in the current period Amount in the previous period
Gains from disposal of fixed assets 0.00 1163586.44
52. Non-operating revenue
In RMB
Rewards for the key
management personnel Amount in the current Amount in the previous The amount of non-
Items period period operating gains & lossed
Non-current asset
Disposition loss 214.72 2955577.58 214.72
Compensation expenses 106491.74 135405.57 106491.74
Gains from the damage
and scrapping of non- 5793.82 0.00 5793.82
current assets
Others 63472.32 13133.66 63472.32
Total 175972.60 3104116.81 175972.60
53. Non-operating expenses
In RMB
Rewards for the key
management personnel Amount in the current Amount in the previous The amount of non-
Items period period operating gains & lossed
Compensation expenses 473014.46 0.00 473014.46
Non-current asset
Disposition loss 27272.86 21854.23 27272.86
Others 274686.93 36046.56 274686.93
Total 774974.25 57900.79 774974.25
131Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
54. Income tax expenses
(1) Income tax expenses schedule
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Current income tax expense 5425150.46 6113497.06
Deferred income tax expense -1336328.00 1550469.29
Total 4088822.46 7663966.35
(2) Adjustment process of accounting profits and income tax expenses
In RMB
Rewards for the key management personnel Items Amount in the current period
Total profits 79304423.43
Current income tax expense accounted by tax and
relevant 19826105.86
Influence of different tax rates applied by some
subsidiaries -4628063.32
Influence of adjustments to the income tax for the prior
years 623762.84
The impact of non-taxable income -869435.17
Non-deductible costs expenses and losses 317883.28
Influence of deductible losses on the use of preliminarily
unrecognized deferred tax assets in previous periods -5623407.98
Effect of deductible temporary differences or deductible
losses from deferred tax assets unrecognized in the 0.00
current period
ax impact of research and development fee plus
deduction -5558023.05
Income tax expenses 4088822.46
55. Other comprehensive income
See Notes VII 37 for details
56. Items of statement of cash flows
(1) Cash related to operating activities
Other cash received related to operating activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Bill deposits and deposits 20466803.18 24284760.87
Current account and other 3813509.98 37772057.08
(IX) Government subsidies 343732.72 4199478.21
132Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Interest income 1215448.21 1802046.53
Total 25839494.09 68058342.69
Other cash paid related to operating activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Bill deposits and deposits 18357865.08 11692439.32
Current account and other 38280919.73 28654553.90
Total 56638784.81 40346993.22
(2) Cash related to investing activities
Other cash received related to investing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Wealth management investments
and others 215577600.00 518000000.00
Total 215577600.00 518000000.00
Important cash received related to investing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Currency fund 15000000.00 18000000.00
Bank wealth management and others 200577600.00 500000000.00
Total 215577600.00 518000000.00
Other cash paid related to investing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Wealth management investments
and others 228984136.52 500000000.00
Total 228984136.52 500000000.00
Important cash paid related to investing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Currency fund 20000000.00 0.00
Bank wealth management and others 208984136.52 500000000.00
Total 228984136.52 500000000.00
(3) Cash related to financing activities
Other cash received related to financing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
133Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Total 0.00 0.00
Other cash paid related to financing activities
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Lease payment 5564480.21 6983290.34
Total 5564480.21 6983290.34
Changes in various liabilities arising from financing activities
?Applicable □Not applicable
In RMB
Rewards for Increase in the current period Decrease in the current period
the key
managemen Beginningbalance Changes in Non-cash Changes in Non-cash Ending balancet personnel cash changes cash changes
Items
Long-term
loans 309751163.39 24230052.00 4258589.86 35032663.50 0.00 303207141.75
33. Lease
liabilities 17683257.08 0.00 5205368.49 5564480.21 0.00 17324145.36
Total 327434420.47 24230052.00 9463958.35 40597143.71 0.00 320531287.11
(4) Notes to cash flows expressed in net amount
Rewards for the key
management personnel Relevant facts Basis for presentation of
Items net amount
Financial impact
(5) Significant activities and financial impacts that do not involve current cash receipts and
payments but affect the financial position of the enterprise or may affect the cash flows in the
future
The Group has no significant activities that do not involve current cash receipts and payments but affect the
financial position of the enterprise or may affect the cash flows of the enterprise in the future.
57. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
In RMB
Items The current period Amount in previous period
1. Net profit adjusted to cash flows
from operating activities:
Net Profit 75215600.97 47528421.58
Add: asset impairment provision 78830284.14 54458503.18
Depreciation of fixed assets
depletion of oil and gas assets 119024259.56 119208355.02
depreciation of productive biological
134Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
assets
Depreciation of right-of-use
assets 5091531.00 4900406.39
Amortization of intangible
assets 1436083.33 2237075.67
Amortization of Long-term
deferred expenses 1105679.10 890263.30
Losses from disposal of fixed
assets intangible assets and other 0.00 -1163586.44
long-term assets ( "-" for gains)
Losses on write-off of fixed
assets ("-" for gains) 27272.86 21854.23
Losses from changes in fair
value ("-" for gains) -6593057.37 -2446624.07
Financial expenses ("-" for
gains) -3182062.73 -3649406.53
Investments losses ("-" for
gains) 7646169.35 3963099.07
Decreases in deferred tax
assets (“-” for increases) -2278736.75 1875265.31
Increase in deferred tax
liabilities ("-" for decreases) 942408.75 -324796.02
Decreases in inventories ("-"
for increases) -85581909.47 -20257532.33
Decreases in operating
receivables (“-” for increases) 44636530.31 49387975.80
Increases in operating
payables (“-” for decreases) 20945727.63 68705046.83
Others 0.00 0.00
Net cash flows arising from
operating activities 252931044.35 325334320.99
2. Significant investing and financing
activities not involving in cash
receipts and payments:
Transfer of debts into capital 0.00 0.00
Convertible corporate bonds
maturing within 1 year 0.00 0.00
Fixed assets leased from financing 0.00 0.00
3. Net change in cash and cash
equivalents:
Ending balance of cash 501894557.90 577224121.16
Less: beginning balance of cash 449257554.81 302084839.35
Plus: ending balance of cash
equivalents 0.00 0.00
Less: beginning balance of cash
equivalents 0.00 0.00
Net increase in cash and cash
equivalents 52637003.09 275139281.81
135Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Net cash paid for acquisition of subsidiaries in the current period
None
(3) Net cash received for disposal of subsidiaries in the current period
None
(4) Breakdowns of cash and cash equivalents
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
I. Cash 501894557.90 449257554.81
Including: Cash at hand 8507.96 15510.21
Demand bank deposit 501886049.94 449242044.60
II. Cash equivalents 0.00 0.00
III. Ending balance of cash and cash
equivalents 501894557.90 449257554.81
Including: cash and cash equivalents
with restricted use right by parent 0.00 0.00
company or subsidiaries of the Group
(5) Limited use but still presented as cash and cash equivalents
In RMB
Rewards for the key
management personnel The current period Amount in previous period Reasons for classified as
Items cash and cash equivalents
Bill and L/C guarantee 6920565.27 2104358.22 Cannot be used forpayment at any time
Demand interest and 7-day 239998.72 579003.23 Cannot be used fornotice deposit interest payment at any time
Others 8799040.80 3401500.00 Account Freezing
Total 15959604.79 6084861.45
(6) Monetary funds not classified as cash and cash equivalents
At end of the reporting period the Group had no cash and cash equivalents with restricted use that were still
presented as such.
(7) Notes on other significant activities
None
58. Notes to the statements of changes in owners' equity
Specify the name of "others" items adjusted to the ending balance of the previous year the adjusted amount and other
136Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
matters:
None
59. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Rewards for the key
management personnel Ending balance of foreigncurrency Exchange rate
Ending balance of
Items translated RMB
Monetary funds 193638552.88
Including:USD 4700011.79 6.8109 32011310.30
HKD 796368.62 0.8686 691725.78
Yen 3831798019.00 0.0420 160935516.80
4. Account receivable 131617079.86
Including:USD 19288987.63 6.8109 131375365.85
HKD 278280.00 0.8686 241716.01
Other receivable 480349.76
Including:USD 70526.62 6.8109 480349.76
Accounts payable 25447275.51
Including:USD 3047608.78 6.8109 20756958.64
Yen 5584190281.00 0.0420 234535991.80
HKD 177671.05 0.8686 136325.07
Other payables 4883759.29
Including:USD 716957.20 6.8109 4883123.79
Yen 15131.00 0.0420 635.50
(2) The nature of the lack of convertibility of the currency and its financial impact the spot
exchange rates adopted and the estimation process as well as the risks faced by the
enterprise arising from the lack of convertibility of the currency
□Applicable ?Not applicable
(3) Description of foreign operating entities including for significant foreign operating entities
disclosure of their principal place of business outside of the country the recording currency
and the basis of selection and disclosure of the reasons for any change in the recording
currency
□Applicable ?Not applicable
(4) Lack of convertibility between the functional currency of the overseas operation and the
presentation currency of the enterprise
□Applicable ?Not applicable
137Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
60. Lease
(1) The Company acted as lessee:
?Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease expense of short-term leases or low-value assets with simplified treatment
?Applicable □Not applicable
The Group has leased a number of assets including houses and buildings with lease terms ranging from 1 to 10
years. The above-mentioned right-of-use assets cannot be used for the purpose of loan mortgage guarantee etc.The short-term lease expenses subject to simplified accounting treatment and recognized in the current profit or
loss in this period amounted to RMB 582500.00 (previous period: RMB 476994.45).The total lease-related cash outflow for the period is RMB6199405.21 (previous period: RMB7460284.79).Situations involving sale and leaseback transactions
None
(2) The Company acted as the lessor
Operating lease as a lessor
?Applicable □Not applicable
In RMB
Rewards for the key management Thereinto: Income related to variable
personnel Items Lease income lease payments that are not includedin lease receipts
Houses and buildings 47257095.41 0.00
Total 47257095.41 0.00
Financing lease as the lessor
□Applicable ?Not applicable
Undiscounted lease receipts for each of the next five years
?Applicable □Not applicable
In RMB
Rewards for the key management Annual undiscounted lease receipts
personnel Items Ending amount Beginning amount
The First year 82125047.62 62836298.43
The Second year 45979790.57 42497987.11
The Third year 25572470.00 31889090.71
The Fourth year 9630559.76 9303836.50
The Fifth year 8495216.95 5911687.52
Total undiscounted lease receipts 1825738.99 4518270.00
138Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
after five years
Reconciliation of undiscounted lease receipts and net lease investment
None
(3) Recognize the profit or loss from financing lease sales as a manufacturer or distributor
□Applicable ?Not applicable
VIII. R&D expenditures
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Employee remuneration 9356296.44 8472938.45
Material consumption 38745617.07 42300970.33
Depreciation 769598.45 1239700.65
Others 543334.80 726136.76
Total 49414846.76 52739746.19
Thereinto: Expensed R&D
expenditures 49414846.76 52739746.19
Capitalized R&D expenditures 0.00 0.00
1. R&D projects eligible for capitalization
None
2. Important outsourced projects under research
None
IX. Changes in consolidation scope
The consolidation scope of the Company during the reporting period has not changed.X. Equity in other entities
1. Equity in the subsidiaries
(1) Compositions of the Group
In RMB
Proportion of shares
Place of Main place of Place of Acquisition
Subsidiary name Business nature held(%)
registration business registration method
Direct Indirect
Shenzhen Lisi
Industrial 2360000.00 Shenzhen Shenzhen Property leasing 100.00% Establishment
Development Co.
139Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Ltd.Shenzhen Shenfang
Property Property
1600400.00 Shenzhen Shenzhen 100.00% Establishment
Management Co. management
Ltd.Shenzhen Beauty Textile
Century Garment Co. 13000000.00 Shenzhen Shenzhen production and 100.00% Establishment
Ltd. sales
Shenzhen Shenfang
Sungang Property Property
1000000.00 Shenzhen Shenzhen 100.00% Establishment
Management Co. management
Ltd.Polarizer
SAPO Photoelectric 583333333.00 Shenzhen Shenzhen production and 60.00% Acquisition
sale
Shengtou (Hongkong)
10000.00 Hongkong Hongkong Polarizer sales 100.00% Establishment
Co. Ltd.
(2) Significant non-wholly-owned subsidiaries
In RMB
Profit or loss Dividends declared to
Subsidiary name Minority attributable to minority be distributed to
Balance of minority
shareholding ratio shareholders in this minority shareholders interests as at the
period in this period end of the period
SAPO Photoelectric 40.00% 24439436.60 0.00 1335085040.29
(3) Key financial information of significant non-wholly-owned subsidiaries
In RMB
Ending balance Beginning balance
Subsidiary
Non-current Current Non-current Non-current Current Non-current
name Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
SAPO
2403879547.261979166820.714383046367.97725471081.99325223420.791050694502.782277246004.301960766749.974238012754.27613303419.14353456061.45966759480.59
Photoelectric
In RMB
Amount in the current period Amount in the previous period
Subsidiary Total Cash flow from Total Cash flow from
name Turnover Net Profit comprehensive operating Turnover Net Profit comprehensive operating
income activities income activities
SAPO
1539256959.2361098591.5161098591.51242888029.741548606518.0530734140.1630734140.16313070563.35
Photoelectric
2. Transactions leading to changes in the share of owners' equity in subsidiaries and still
controlling the subsidiaries
(1) Explanation of changes in the share of owners' equity in subsidiary
None
140Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(2) Impact of the transaction on minority interests and owners' equity attributable to the parent company
None
3. Equity in joint ventures or associates
(1) Significant joint ventures or associates
None
(2) Key financial information of significant joint ventures
None
(3) Key financial information of significant associates
None
(4) Summarized financial insignificant of unimportant joint ventures and associates
In RMB
Ending balance/amount incurred in Beginning balance/amount incurred
the current period in previous period
Joint ventures Associated enterprise
Total book value of investment 100825762.08 104274952.84
Total of the following items calculated
by shareholding ratio
- Net profit -3449190.76 -3779842.71
Other comprehensive income 0.00 0.00
Total comprehensive income -3449190.76 -3779842.71
Associated enterprise
Total book value of investment 3204891.81 3308634.07
Total of the following items calculated
by shareholding ratio
- Net profit 137757.74 134243.64
Other comprehensive income 0.00 0.00
Total comprehensive income 137757.74 134243.64
(5) Description of significant restrictions on the ability of joint ventures or associates to
transfer funds to the Company
None
141Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(6) Excess losses incurred by joint ventures or associates
None
(7) Unrecognized commitments related to investments in joint ventures
None
(8) Contingent liabilities related to joint ventures or investments in associates
None
4. Important joint operation
None
5. Equity in the structured entities not included in the scope of consolidated financial
statements
None
6. Others
None
XI. Government grants
1. Government grants not recognized by amounts receivable at the end of the reporting period
□Applicable ?Not applicable
Reasons for not receiving the expected amounts of government grants at the expected time
□Applicable ?Not applicable
2. Liability items involving government grants
?Applicable □Not applicable
In RMB
New Amount Amount
Accounting Beginning subsidies in included in transferred to
Other
changes in Ending Related to
item balance the current non- other income the current balance assets/
period operating in the current incomerevenue in period period
Deferred
income 83469949.03 0.00 0.00 9564335.00 0.00 73905614.03 Asset-related
Deferred
income 0.00 343732.72 0.00 343732.72 0.00 0.00
Income -
related
142Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
3. Government grants included in the current profit or loss
?Applicable □Not applicable
In RMB
Accounting item Amount in the current period Amount in the previous period
Other income 9908067.72 8700501.44
XII. Risks associated with financial instruments
1. Various risks arising from financial instruments
The Group's main financial instruments include monetary funds financial assets held for trading notes receivable
accounts receivable receivables financing other receivables other equity instrument investments short-term
borrowings derivative financial liabilities notes payable accounts payable other payables other current liabilities and
long-term borrowings etc. At the end of the period the financial instruments held by the Group are as follows and
the details are described in "Section 8 VII. Notes to Consolidated Financial Statements".. The risks associated with
these financial instruments and the risk management policies adopted by the Group to reduce these risks are as
follows. The Group's management manages and monitors these exposures to ensure that the risks are controlled
within certain limits.Unit: RMB
Rewards for the key management personnel Items Ending balance Beginning balance
Financial assets
Measured at fair value with its changes included in
current profits and losses
Transactional financial assets 748398696.32 736341286.18
Measured at fair value with its changes included in other
comprehensive income
Financings receivable 1507659.34 22584820.72
Investment in other equity instruments 159261600.00 159261600.00
Measured in amortized cost
Monetary funds 517854162.69 449964450.38
Notes receivable 33936675.37 85980246.52
4. Account receivable 817955456.71 761807949.52
Other receivable 4783576.95 4324973.02
Financial liabilities
Measured at fair value with its changes included in current
profits and losses -
Derivative financial liabilities 572148.11 4071800.19
Measured in amortized cost
23.Notes payable 14734317.72 -
143Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Accounts payable 479599097.76 344656835.89
Other payables 142982024.31 159826234.73
Other current liabilities 33936675.37 53001736.07
Long-term loans 303207141.75 309751163.39
The Group uses sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes in risk variables on current profits and losses and shareholders' equity. Because any risk variable rarely
changes in isolation and the correlation between variables will have a great impact on the final amount of a risk
variable change the following contents are carried out under the assumption that each variable change is independent.
1. Risk management objectives policies and procedures and changes occurred during the
year
The Group's goal in risk management is to strike a proper balance between risks and benefits reduce the
negative impact of risks on the Group's operating performance to the lowest level and maximize the interests of
shareholders and other equity investors. Based on this risk management objective the basic strategy of the Group's
risk management is to identify and analyze various risks faced by the Group establish an appropriate risk tolerance
bottom line and conduct risk management and timely and reliably supervise various risks to control risks within a
limited scope.
1.1 Market risk
1.1.1 Foreign exchange risk
Foreign exchange risk refers to the risk of losses caused by exchange rate changes. The Group's foreign
exchange risks are mainly related to US dollars Japanese yen Hong Kong dollars and euros. Except for some import
purchases and export sales of the Group's companies located in Chinese mainland which are mainly settled in US
dollars Japanese yen Hong Kong dollars and Euros other major business activities of the Group are settled in RMB.As of June 30 2026 except for the foreign currency monetary items described in "Section VIII VII. Notes to the
items of the consolidated financial statements" the assets and liabilities of the Group are all denominated in RMB. The
foreign exchange risks arising from the assets and liabilities with foreign currency balances (converted into RMB)
described in the table below may have an impact on the Group's operating results.Unit: RMB
Ending balance
Rewards for the key management personnel Items
Assets Liabilities
USD 163867025.91 25640082.43
Yen 160935516.80 234536627.30
HKD 933439.79 154325.07
Subtotal 325735982.50 260331034.80
144Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk. At
present the Group has not taken any measures to avoid foreign exchange risks.Sensitivity analysis of foreign exchange risk
With other variables unchanged the pre-tax impact of reasonable changes in exchange rates on the current profit
or loss and shareholders' equity is as follows:
Unit: RMB
Rewards for the key management personnel Amount in the current period
Items Interest rate change Impact on Impact on shareholders'
profits equity
All foreign currencies Appreciation of RMB by5% 3270247.39 3270247.39
All foreign currencies Depreciation of RMB by5% -3270247.39 -3270247.39
1.1.2. Interest rate risk - risk of changes in cash flows
The Company's risk of cash flow changes of financial instruments caused by interest rate changes is mainly
related to bank loans with floating interest rate. The Group continues to pay close attention to the impact of interest
rate changes on the Group's interest rate risk. The Group's policy is to maintain floating interest rates on these loans
and there is no interest rate swap arrangement at present.Sensitivity analysis of interest rate risk:
With other variables unchanged the pre-tax impact of reasonable changes in interest rates on the current profit or
loss and shareholders' equity is as follows:
Unit: RMB
Rewards for the key management personnel Interest rate Amount in the current period
Items change Impact on Impact on shareholders'
profits equity
Floating-rate loan Increase by 1% -3029799.61 -3029799.61
3029799.61
Floating-rate loan Decrease by 1% 3029799.61
1.2. Credit risk
As of June 30 2026 the maximum credit risk exposure that may cause financial losses to the Group mainly
comes from the losses of the Group's financial assets due to the failure of the other party to the contract to perform its
obligations including: monetary funds financial assets held for trading notes receivable accounts receivable
receivables financing and other receivables. On the balance sheet date the book value of the Group's financial assets
has represented its maximum credit risk exposure.
145Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
In order to reduce the credit risk the Group arranges special personnel to determine the credit limit conduct credit
approval and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue
debts. In addition the Group reviews the recovery of financial assets on each balance sheet date to ensure that
sufficient credit loss provision has been made for relevant financial assets. Therefore the management of the Group
believes that the credit risk assumed by the Group has been greatly reduced.The Group's monetary funds are deposited in banks with high credit ratings so the monetary funds only have low
credit risk.As of June 30 2026 the balance of accounts receivable from the top five customers of the Group was RMB
486632633.17 accounting for 57.41% of the balance of accounts receivable of the Group. In addition the Group has
no other significant credit risk exposure concentrated in a single financial asset or financial asset portfolio with similar
characteristics.
1.3. Liquidity risk
When managing liquidity risk the Group maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Group's business needs and reduce the impact of cash flow fluctuations.The management of the Group monitors the use of bank loans and ensures compliance with the loan agreement.As at June 30 2026 the unused comprehensive bank credit line of the Group was RMB 1334982200.The Group's financial liabilities held are presented as follows based on the maturity of undiscounted remaining
contractual obligations:
Unit: RMB
Rewards for the key management Within 1 year 1-5 years More than 5personnel Items years Tota
23.Notes payable 14734317.72 14734317.72
Accounts payable 479599097.76 479599097.76
Other payables 142982024.31 142982024.31
Other current liabilities 33936675.37 33936675.37
Long-term loans 67507015.15 249145543.53 316652558.68
33. Lease liabilities 7848822.65 9772147.28 2809029.24 20429999.17
Derivative financial liabilities 572148.11 572148.11
2. Hedging
(1) The Company conducts hedging business for risk management
?Applicable □Not applicable
Corresponding Risk Qualitative Economic Expected Impact of
Item Management and Relationship Achievement Corresponding
Strategies and Quantitative between of Risk Hedging
146Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Objectives Information on Hedged Items Management Activities on
Hedged Risks and Relevant Objectives Risk Exposure
Hedging
Instruments
By conducting
To hedge the hedging
foreign- exchange risk
of foreign- currency Exchange- rate
business the
Foreign- excha hedging
liabilities arising from fluctuations
the Company’s give rise to
nge forward function of the
Foreign raw-material corresponding
and option Risk-managem derivatives
Exchang exchange gains contracts are ent objectives market can be
e Rate purchases andprevent adverse and losses on
signed to are expected fully utilised to
Risk the Company’s mitigate to be achieved. mitigate theimpacts of significant
exchange- rate foreign- curren
foreign- exchan impact of
cy liabilities ge market substantialfluctuations on the held. risks. exchange- rateCompany’s fluctuations on
operations. the Company’s
operations.
(2) The Company conducts hedging business for risk management and is expected to achieve risk
management objectives but does not apply hedging accounting
?Applicable □Not applicable
Item Reasons for Not Applying Hedge Accounting Impact on Financial Statements
The Company carries out foreign- exchange
Foreign- Exch hedging activities yet the qualifying Derivative financial liabilities of RMB
ange Forward conditions for applying Accounting Standard 572148.11 are recognised; fair- value
Contracts for Business Enterprises No.24 — Hedge change gain or loss of - RMB 572148.11;
Accounting are not satisfied. investment loss of RMB 4334736.33.
3. Financial assets
(1) Classification of transfer methods
?Applicable □Not applicable
In RMB
The nature of the The amount of The basis for
Transfer method transferred financial financial assets Derecognition determining the
assets transferred information situation ofderecognition
Since the credit risk
and deferred
Outstanding banker's payment risk of
Transfer by acceptance bill that banker's acceptance
endorsement is classified as 42234097.78 Derecognition bill in financings
financings receivable receivable are very
small and the
interest rate risk
147Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
related to the bill has
been transferred to
the bank it can be
determined that the
main risks and
rewards on the
ownership of the
note have been
transferred so the
recognition is
derecognized.Unexpired banker's
Transfer by acceptance bill
endorsement classified as bills 33936675.37 Non-derecognition
Not eligible for
derecognition
receivable
Tota 76170773.15
(2) Financial assets derecognition due to transfer
?Applicable □Not applicable
In RMB
Rewards for the key
management personnel Method for the financial The amount of the financial Gains or losses related to
Items assets transferred asset derecognized derecognition
Financings receivable Transfer by endorsement 42234097.78 0.00
Total 42234097.78 0.00
(3) Continued involvement in the transfer of financial assets
?Applicable □Not applicable
In RMB
Rewards for the key Amount of assets resulting Amount of liability arising
management personnel Asset transfer method from continued from continued
Items involvement involvement
Notes receivable Transfer by endorsement 33936675.37 33936675.37
Total 33936675.37 33936675.37
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
Fair value as at the end of the period
Rewards for the key
management Fair value Fair value Fair value
personnel Items measurement of measurement of measurement of Tota
Level 1 Level 2 Level 3
I. Continuous -- -- -- --
measurement of fair
148Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
value
(I) Trading financial
assets 0.00 748398696.32 0.00 748398696.32
1. Financial assets
measured at fair value
through current profit 0.00 748398696.32 0.00 748398696.32
or loss
(III) Investments in
other equity 0.00 0.00 159261600.00 159261600.00
instruments
(VI) Receivable
financing 0.00 0.00 1507659.34 1507659.34
Total assets
continuously measured 0.00 748398696.32 160769259.34 909167955.66
at fair value
(VI) Financial liabilities
held for trading 0.00 572148.11 0.00 572148.11
Derivative financial
liabilities 0.00 572148.11 0.00 572148.11
Total liabilities
constantly measured at 0.00 572148.11 0.00 572148.11
fair value
II. Measurement at fair
value not on a going -- -- -- --
concern
2. Basis for recognition of the market price of items measured at fair value of Level 1 on a
going and non-going concern
None
3. Qualitative and quantitative valuation techniques and important parameters of sustainable
and non-sustainable items measured on the basis of fair value of level 2
Rewards for the key management personnel Ending Valuation
Items Input valueFair value technique
Transactional financial assets 748398696.32 Discounted cashflow technique Expected yield
The contracted
delivery exchange
rate under forward
foreign exchange
Derivative financial liabilities 572148.11 Discounted cashflow technique contracts and themarket forward
exchange rate as of
the balance sheet
date
149Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Continuous and non-continuous Level 3 fair value measurement items valuation
techniques used and the qualitative and quantitative information of important parameters
Rewards for the key management personnel Ending
Items Valuation technique Input valueFair value
Financings receivable 1507659.34 Discounted cashflow technique Discount rate
Comparison of listed P/B ratio of similar listed
companies companies
Investment in other equity instruments 159261600.00 Comparable incomemethod Market price
Statement
adjustment method Book balance
5. The information of adjustment between the beginning and the end of the book value and
analysis on the sensitivity of the unobservable parameters of sustainable and non-sustainable
items measured on the basis of fair value of tier three
None
6. Continuous measurement items by fair value reason for conversion among all levels in the
current period and policies for determining the time of conversion
None
7. Change of valuation techniques in the current period and reason for change
None
8. Condition of fair value of financial assets and financial liabilities not measured at fair value
Financial assets and liabilities not measured at fair value mainly include: monetary funds notes receivable
accounts receivable other receivables notes payable accounts payable other payables other current liabilities and
long-term borrowings etc.The management of the Group believes that the book values of financial assets and financial liabilities measured
in amortized cost in the financial statements are close to their fair values.
9. Others
None
150Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
XIV. Related parties and related party transactions
1. Parent company
Parent Parent
Name of parent Place of company's
company registration Business nature
Place of shareholding company's votingregistration percentage in rights percentage
the Company in the Company
18/F Investment Equity
Shenzhen Building investments real
Investment Shennan Road estate 33586000000.00 46.21% 46.21%Holdings Co. Ltd Futian District development
Shenzhen etc.Parent company
The parent company of the Company is a wholly state-owned company approved and authorized by the
Shenzhen Municipal Government which exercises the functions of the investor in accordance with the law for the
state-owned enterprises within the authorized scope.The ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission of
Shenzhen Municipal People's Government.Other explanations:
During the reporting period the registered capital of the parent company has not changed.
2. Subsidiaries of the Company
See Note 10 Rights and interests in other entities for details of the subsidiary of the Company.
3. Joint ventures and associates
See Note 11. Long-term equity investment for details of important joint ventures or associates of the Company.Joint ventures and associates involved in the related-party transactions with the Company in the Current Period
or leading to balance due to the related party transaction they had with the Company in previous periods:
Name of joint venture or associates Relationship with the Company
Shenzhen Guanhua Printing & Dyeing Co. Ltd. A joint venture of the Company whose vice chairman isappointed by the Group
Shenzhen Changlianfa Printing and dyeing Company An associate of the Company whose chairman anddirectors are appointed by the Group
Other explanations
None
151Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Other related parties
Other related parties Relationship between other related parties with theCOOEC
Shenzhen Xinfang Knitting Co. Ltd. The Company's shareholding company and the chairmanof the company are the employees of the Group
Shenzhen Dailishi Underwear Co. Ltd. The Company's shareholding company and the chairmanof the company are the employees of the Group
Shenzhen Shentou Property Development Co. Ltd A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen SGE Longyan Energy Technology Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Guoren P&C Insurance Co. Ltd. Shenzhen Branch A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Talent Service Center (Shenzhen Talent A subsidiary of Shenzhen Investment Holdings Limited
Market) the parent company of the Company
Shenzhen Property Management Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Cultural Enterprise Development Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Investment Holdings Development Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Investment Holdings Digital Technology Co. A subsidiary of Shenzhen Investment Holdings Limited
Ltd. the parent company of the Company
Shenzhen Legal Training Center Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Leaguer Education Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Minority shareholder of the Company's subsidiary SAPO
Hengmei Optoelectronics Co. Ltd Photoelectric; one of the directors of the Company is a
director of SAPO Photoelectric
Xinmei Fontana Holding (Hong Kong) Limited One of the directors of the Company is a director ofSAPO Photoelectric
Minority shareholder of the Company's subsidiary SAPO
Haosheng Hengxin (Wuxi) Materials Co. Ltd. Photoelectric; one of the directors of the Company is a
director of SAPO Photoelectric
Kunshan Xinmei Optical Technology Co. Ltd. One of the directors of the Company is a director ofSAPO Photoelectric
Fuzhou Hengmei Optoelectronics Co. Ltd. A subsidiary of a minority shareholder of SAPOPhotoelectric a subsidiary of the Company
Shenzhen Security Service Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Environmental Technology Group Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Digital Talent Technology Co. Ltd. A subsidiary of Shenzhen Investment Holdings Limitedthe parent company of the Company
Shenzhen Talent Recruitment International (Group) Co. A subsidiary of Shenzhen Investment Holdings Limited
Ltd. the parent company of the Company
Wuzhou Guest House Operation Branch of Shenzhen A subsidiary of Shenzhen Investment Holdings Limited
Wuzhou International Hotel Management Group Co. Ltd. the parent company of the Company
Shenzhen Penglao Human Resources Management Co. A subsidiary of Shenzhen Investment Holdings Limited
Ltd. the parent company of the Company
Other explanations
None
152Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
5. Related party transactions
(1) Related party transactions on purchase and sales of goods rendering and receipt of
services
Purchase of goods/receipt of services
In RMB
Approved Whether the
Related party Content of related Amount in the transaction transaction Amount in theparty transaction current period quota quota is previous periodexceeded
Hengmei
Optoelectronics Material procurement 1966166.94 24500000.00 No 0.00
Co. Ltd
Hengmei
Optoelectronics Technical servicefees 2177500.00 3500000.00 No 0.00Co. Ltd
Xinmei
Fontana
Holding (Hong Material procurement 64175034.44 No 0.00
Kong) Limited 316286325.00
Kunshan
Xinmei Optical
Technology Material procurement 48163716.84 No 0.00
Co. Ltd.Shenzhen SGE
Longyan
Energy Purchasing electricity 519578.65 469327.43
Technology
Co. Ltd.Shenzhen
Investment Lease fee / property
Holdings management fee /
Development utilities / interest
619808.60219288.00
Co. Ltd. expense
Shenzhen
Security
Service Co. Security service fee 1704653.42 0.00
Ltd.Shenzhen
Environmental Hazardous waste
Technology treatment service 535005.22 0.00
Group Co. Ltd.Shenzhen
Digital Talent
Technology Consulting fees 11323.93 0.00
Co. Ltd.Shenzhen
Legal Training
Center Co. Training expenses 0.00 680.00
Ltd.Guoren P&C
Insurance Co.Ltd. Shenzhen Insurance premiums 131209.23 100377.15
Branch
153Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Shenzhen
Talent Service
Center Outsourcing service
(Shenzhen fee
33163.3031318.11
Talent Market)
Shenzhen
Property Property
Management management fee 11134.12 1121.48
Co. Ltd.Shenzhen
Investment Software/office
Holdings Digital expenses/information
Technology construction
176230.8026687.76
Co. Ltd. expenses
Shenzhen
Talent
Recruitment
International Recruitment fees 300.00 0.00
(Group) Co.Ltd.Wuzhou Guest
House
Operation
Branch of
Shenzhen
Wuzhou Employee welfare 10472.00 0.00
International
Hotel
Management
Group Co. Ltd.Shenzhen
Penglao
Human
Resources Labor costs 80883.81 0.00
Management
Co. Ltd.Shenzhen
Leaguer
Education Co. Training expenses 0.00 6454.70
Ltd.Shenzhen
Cultural Purchase of
Enterprise computers and 0.00 17196.00
Development photocopiers
Co. Ltd.Shenzhen
Guanhua
Printing & Interest expenses 0.00 2831.38
Dyeing Co.Ltd.Sales of goods/ rendering of services
In RMB
Related party Content of related party Amount in the current Amount in the previoustransaction period period
Fuzhou Hengmei Sale of raw materials and
Optoelectronics Co. Ltd. processing fees 1254556.56 0.00
154Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Haosheng Hengxin (Wuxi)
Materials Co. Ltd. Processing fees 6171323.80 0.00
Hengmei Optoelectronics
Co. Ltd Sale of raw materials 633125.22 0.00
Shenzhen Environmental
Technology Group Co. Sale of waste 19719.91 0.00
Ltd.Shenzhen Changlianfa
Printing and dyeing House leasing 5714.29 0.00
Company
Shenzhen Xinfang Knitting
Co. Ltd. House leasing 5714.29 0.00
(2) Management on commission/contract and commissioned management/contracting-out
None
(3) Related party leases
The COOEC acted as the lessor:
In RMB
Lessee Type of leased asset Lease income recognized Lease income recognizedin this period in previous period
Shenzhen Xinfang Knitting
Co. Ltd. Houses and Building 5714.29 0.00
Shenzhen Changlianfa
Printing and dyeing Houses and Building 5714.29 0.00
Company
The COOEC acted as lessee:
In RMB
Rental costs for
short-term leases Variable lease
and low-value payments not Interest expense
asset leases for included in the on lease Increase in right-
simplified measurement of
Paid rents liabilities of-use assets
Type
processing (if lease liabilities (if assumed
Lessor ofleased applicable)
applicable)
asset
Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t in the t in the t in the t in the t in the t in the t in the t in the t in the t in the
current previo current previo previous us current us current
previo previo
period period period period us
current
period usperiod period period period period
Shenz
hen
Invest
ment House
Holdin s and 0.00 0.00 0.00 0.00 38236 0.00 63486 0.00 1733gs Buildin 8.47 .69 358.64 0.00
Develo g
pment
Co.Ltd.
155Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(4) Related party guarantees
None
(5) Information on inter-bank lending of capital of related parties
None
(6) Asset transfer and debt restructuring of related parties
None
(7) Remuneration of key officers
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Rewards for the key management
personnel 3588506.00 1994146.00
(8) Other related party transactions
None
6. Accounts receivable and payable of related parties
(1) Receivables
In RMB
Ending balance Beginning balance
Name Related party
Balance of Book Bad debt Bad debtprovisions Balance of Book provisions
Haosheng
Account Hengxin (Wuxi)
receivable Materials Co. 1311410.44 19802.30 3255772.72 41863.57
Ltd.Account Fuzhou Hengmei
receivable Optoelectronics 0.00 0.00 1028460.87 848850.89Co. Ltd.Account Hengmei
receivable Optoelectronics 0.00 0.00 652754.27 538757.54Co. Ltd
Shenzhen
Account Shentou
receivable Property 6027.00 1808.10 6027.00 1808.10Development
Co. Ltd
Prepayment Xinmei Fontana 5371247.31 0.00 0.00 0.00
156Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Holding (Hong
Kong) Limited
Kunshan Xinmei
Prepayment OpticalTechnology Co. 13196175.38 0.00 4745325.94 0.00
Ltd.Shenzhen
Investment
Prepayment Holdings Digital 0.00 0.00 96500.00 0.00
Technology Co.Ltd.Shenzhen
Investment
Prepayment Holdings 0.00 0.00 53118.73 0.00
Development
Co. Ltd.Guoren P&C
Prepayment Insurance Co.Ltd. Shenzhen 148000.00 0.00 0.00 0.00
Branch
Shenzhen
Other receivable DailishiUnderwear Co. 550000.00 27500.00 1100000.00 55000.00
Ltd.Shenzhen
Investment
Other receivable Holdings 224354.56 11631.14 106237.44 5311.87
Development
Co. Ltd.
(2) Payables
In RMB
Name Related party Ending book balance Beginning book balance
Accounts payable Xinmei Fontana Holding(Hong Kong) Limited 0.00 14853562.10
Accounts payable Fuzhou HengmeiOptoelectronics Co. Ltd. 0.00 1370344.95
Accounts payable Hengmei OptoelectronicsCo. Ltd 2177500.00 633118.20
Shenzhen Environmental
Accounts payable Technology Group Co. 301129.84 0.00
Ltd.Accounts payable Shenzhen Security ServiceCo. Ltd. 328240.00 0.00
Other payables Shenzhen GuanhuaPrinting & Dyeing Co. Ltd. 3806454.17 3806454.17
Shenzhen Changlianfa
Other payables Printing and dyeing 2281299.95 2281299.95
Company
Other payables Shenzhen Xinfang KnittingCo. Ltd. 244789.85 244789.85
Shenzhen Investment
Other payables Holdings Digital 0.00 51840.00
Technology Co. Ltd.Other payables Shenzhen Investment 0.00 18417.00
157Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Holdings Development Co.Ltd.Shenzhen Cultural
Other payables Enterprise Development 0.00 6536.00
Co. Ltd.Other payables Shenzhen Security ServiceCo. Ltd. 20000.00 0.00
7. Commitments from related parties
None
8. Others
None
XV. Commitments and contingencies
1. Significant commitments
Significant commitments on the balance sheet date
In RMB
Rewards for the key management
personnel Items Ending amount Beginning amount
Contracted but not recognized in the
financial statements
Commitment on construction and purchase
of long-lived assets 74460058.34 7977917.50
Large amount contract 389285200.00 0.00
2. Contingencies
(1) Significant contingencies on the balance sheet date
As of June 30 2026 the Group had no contingencies such as pending litigations and external guarantees to be
disclosed.
(2) Notes shall be given even if there were no significant contingencies required to be
disclosed by the Company
The Company has no significant contingencies required to be disclosed.
3. Others
None
158Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
XVI. Events after the balance sheet date
1. Significant non-adjustment matters
None
2. Profit distribution
None
3. Sales return
None
4. Events after the balance sheet date
To further establish and improve the Company’s long- term incentive mechanism attract and retain high- caliber
talents fully motivate the core team of the Company effectively align the interests of shareholders the Company and
its employees and enable all parties to focus on the long- term development of the Company under the premise of
fully safeguarding shareholders’ interests and in accordance with the principle of matching returns with contributions
the Company convened the 4th meeting of the 9th Board of Directors on 18?August?2026. The meeting reviewed and
approved the Proposal on the Company’s 2026 Stock Option Incentive Plan (Draft) and its Summary the Proposal on
the Administration Measures for Performance Assessment under the Company’s 2026 Stock Option Incentive Plan
and the Proposal on Authorising the Board of Directors by the Shareholders’ Meeting to Handle Matters in Connection
with the Company’s 2026 Stock Option Incentive Plan. For details please refer to the Company’s 2026 Stock Option
Incentive Plan (Draft) and Summary of the 2026 Stock Option Incentive Plan (Draft) published on CNINFO
(http://www.cninfo.com.cn) on 19?August?2026.XVII.Other significant events
1. Correction of accounting errors in prior period
None
2. Debt restructuring
None
3. Asset replacement
(1) Exchange of non-monetary assets
None
(2) Replacement of other assets
None
159Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
4. Annuity plan
None
5. Discontinued operations
None
6. Segment information
(1) Determination basis and accounting policies for reporting segments
According to the internal organizational structure management requirements and internal reporting system of the
Group the Group's operating business is divided into two operating segments. The management of the Group
regularly evaluates the operating results of these segments to decide on the allocation of resources to them and
evaluate their performance. On the basis of operating segments the Group has identified the following three reporting
segments: polarizer business property leasing business and textile business.Information on segment reporting is disclosed according to the accounting policies and measurement standards
adopted by each segment when reporting to the management and these measurement bases are consistent with the
accounting and measurement bases when preparing the financial statements.
(2) Financial information of reporting segments
In RMB
Rewards for the key
management personnel Polarizer Property leasing Inter-segment offset Tota
Items
Operating income:
External transaction
income 1535690780.45 53032417.69 0.00 1588723198.14
Inter-segment
transaction income 0.00 1447100.34 -1447100.34 0.00
Total operating income
of segment 1535690780.45 54479518.03 -1447100.34 1588723198.14
Operating expenses
(note) 1412749408.25 38937987.85 -1277706.72 1450409689.38
Operating profit 56493656.82 28879161.88 -5469393.62 79903425.08
Net Profit 58709202.34 21957475.84 -5451077.21 75215600.97
Total assets of segment 4323911225.00 3183397959.65 -1957076749.55 5550232435.10
Total liabilities of
segment 1049114177.95 196363048.99 -36512535.43 1208964691.51
(3) If the Company has no reporting segments or cannot disclose the total assets and total
liabilities of each reporting segment the reasons shall be stated.None
160Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
(4) Other notes
Note: This item includes operating costs taxes and surcharges management costs R&D expenses sales
expenses and financial expenses.
7. Other significant transactions and events that influence the decision-making of investors
In light of the current operating status of Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter referred to as
"Shenzhen Xieli") the Company filed an application with the People’s Court of Luohu District Shenzhen (hereinafter
referred to as the "Court") for compulsory liquidation of Shenzhen Xieli on 7?January?2026. A hearing for this case was
held at the Luohu Court on 19?May and the case is still under the compulsory liquidation procedure pending a ruling by
the Luohu Court.
8. Others
None
XVIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 7710115.69 8710793.24
Over 3 years 0.00 118603.99
Including：4 to 5 years 0.00 118603.99
Total 7710115.69 8829397.23
(2) Disclosure by provision method for bad debts
In RMB
Ending balance Beginning balance
Categor Balance of Book Bad debt Balance of Book Bad debt
y provisions Book provisions Book
balance balance
Amount Proportion Amount
Provisio
n ratio Amount
Proporti
on Amount
Provisio
n ratio
Inclu
ding:
Account
s
receiva 77101 100.00 115450 1.50% 75946 88293 100.00 115022 87143ble with 15.69 % .32 65.37 97.23 % .89 1.30% 74.34
provisio
n for
bad
161Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
debts
on a
combin
ation
basis
Inclu
ding:
Total 77101 100.00 115450 1.50% 75946 88293 100.00 115022 1.30% 8714315.69 % .32 65.37 97.23 % .89 74.34
Name of the category for which bad debt provision is accrued by portfolio: Accrual of bad debt provision based on the
simplified model of expected credit losses
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Provision for bad debts
based on simplified 7710115.69 115450.32 1.50%
expected credit loss model
Total 7710115.69 115450.32
Explanation on the basis for determining the combination:
Group customers are mainly leasing customers and the provision for credit impairment is made according to the aging
method combination.If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses:
□Applicable ?Not applicable
(3) Provision for bad debts accrued recovered or reversed for the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Category Beginning Endingbalance Accrual Recovery orreversal Write-off Others
balance
Bad debt
provisions 115022.89 427.43 0.00 0.00 0.00 115450.32
Total 115022.89 427.43 0.00 0.00 0.00 115450.32
(4).Actual write-off of accounts receivable for the current period
There were no accounts receivable with actual write-off during the reporting period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
In RMB
Unit name Ending balance Ending balance Ending balances Ratio to the total Ending balance
162Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
of accounts of contract of accounts amount of of provision for
receivable assets receivable and ending balance bad debts of
contract assets of accounts accounts
receivable and receivable and
contract assets provision for
(%) impairment of
contract assets
Customer1 5708767.73 0.00 5708767.73 74.04% 75368.70
Customer2 1122801.92 0.00 1122801.92 14.56% 0.00
Customer3 189195.98 0.00 189195.98 2.45% 9459.80
Customer4 81020.22 0.00 81020.22 1.05% 0.00
Customer5 51336.46 0.00 51336.46 0.67% 2566.82
Total 7153122.31 0.00 7153122.31 92.77% 87395.32
2. Other receivables
In RMB
Rewards for the key management
personnel Items Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivable 1549862.15 2014545.65
Total 1549862.15 2014545.65
(1) Other receivables
1) Classification of other receivables by nature of payment
In RMB
Payment nature Ending book balance Beginning book balance
Related party transactions within the
consolidation scope 26014041.10 26114041.10
External unit transactions 14905577.41 15455577.41
Deposit and security deposit 10000.00 10000.00
Others 1870310.70 1812494.20
Total 42799929.21 43392112.71
2) Disclosure by aging
In RMB
Category Ending book balance Beginning book balance
Within 1 year (including 1 year) 1476257.20 1973476.50
1-2 years 372981.02 13636400.01
2-3 years 13406076.71 273000.00
Over 3 years 27544614.28 27509236.20
Include：3 to 4 years 240019.17 2204641.09
4 to 5 years 7000000.00 10025200.01
163Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
More than 5 years 20304595.11 15279395.10
Total 42799929.21 43392112.71
3) Disclosure by provision method for bad debts
In RMB
Ending balance Beginning balance
Balance of Book Bad debt provisions Balance of Book Bad debt provisions
Category
Provision Book balance Provision Book balance
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Account
receivable
withdrawal
42799929.21100.00%41250067.0696.38%1549862.1543392112.71100.00%41377567.0695.36%2014545.65
bad debt
provision by
portfolio
Including:
Provisio 42799929.21 100.00% 41250067.06 96.38% 1549862.15 43392112.71 100.00% 41377567.06 95.36% 2014545.65
Total 42799929.21 100.00% 41250067.06 96.38% 1549862.15 43392112.71 100.00% 41377567.06 95.36% 2014545.65
Name of category of provision for bad debts on a portfolio basis: Other receivables with provision for bad debts on a
portfolio basis by credit risk characteristics
In RMB
Ending balance
Name
Balance of Book Bad debt provisions Provision ratio
Other receivables for which
credit loss provision is
made according to the 42799929.21 41250067.06 96.38%
combination of credit risk
characteristics
Total 42799929.21 41250067.06
Explanation on the basis for determining the combination:
Other receivables with provision for bad debts based on credit risk characteristics combination
The provision for bad debts made according to the general model of expected credit losses
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss Expected credit lossBad debt provisions
losses over the throughout the throughout the
Tota
next 12 months duration (without duration (with creditcredit loss) impairment)
Balance as of January
1202674666.3313909400.0127393500.7241377567.06
Balance as at January
1 2026 forwarded to
164Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
the current period
——Transfer to stage
III 0.00 -135378.08 135378.08 0.00
Provision for the
current period 27500.00 0.00 0.00 27500.00
Reversal in this period -55000.00 0.00 -100000.00 -155000.00
Balance as of June 30
202647166.3313774021.9327428878.8041250067.06
Basis for division of each stage and ratio of provision for bad debts
None
Changes in the book balance of provision for loss with significant changes in the current period
□Applicable ?Not applicable
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts for the current period:
In RMB
Changes in the current period
Category Beginning Endingbalance Accrual Recovery or Transfer or balancereversal write off Others
Bad debt
provisions 41377567.06 27500.00 -155000.00 0.00 0.00 41250067.06
Total 41377567.06 27500.00 -155000.00 0.00 0.00 41250067.06
None
5) Other receivables actually write-off in the current period
There was no other receivables with actual write-off during the reporting period.
6) Other receivables of the top five ending balances collected by debtor
In RMB
Ratio to the total Balance of
Unit name The nature of the Ending balance Category ending balance provision for badamount of other debts as at the
receivables end of the period
Transactions 1-2 years 2-3
Customer1 with related 26014041.10 years 3-4 years4-5 years more 60.78% 26014041.10parties than 5 years
Customer2 External unit More than 5
transactions 11389044.60 years 26.61% 11389044.60
Customer3 External unit 1800000.00 More than 5transactions years 4.21% 1800000.00
Customer4 External unit 1018295.37 More than 5transactions years 2.38% 1018295.37
165Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Customer5 Others 592420.00 More than 5years 1.38% 592420.00
Total 40813801.07 95.36% 40813801.07
7) Reported as other receivables due to centralized fund management
There was no other receivables due to centralized management of funds during the reporting period.
3. Long-term equity investments
In RMB
Ending balance Beginning balance
Rewards for the
key management Withdrawn Withdrawn
personnel Items Balance of Book impairment Book balance Balance of Book impairment Book balance
provision provision
Investments in
1963252748.3137390767.641925861980.671963252748.3137390767.641925861980.67
subsidiaries
Investments in
associates and 104030653.89 0.00 104030653.89 107583586.91 0.00 107583586.91
joint ventures
Total 2067283402.20 37390767.64 2029892634.56 2070836335.22 37390767.64 2033445567.58
(1) Investment in subsidiaries
In RMB
Increase/decrease in this period Balance of
Beginning
Beginning provision for
balance of Withdrawal of Ending balanceName balance (book
provision for Add Decreased
impairment as
value) impairment Others
(book value)
at the end of
impairment investment investment provision the period
SAPO
1910247781.9414415288.090.000.000.000.001910247781.9414415288.09
Photoelectric
Shenzhen Lisi
Industrial
8073388.250.000.000.000.000.008073388.250.00
Development
Co. Ltd.Shenzhen
Beauty
Century 0.00 22975479.55 0.00 0.00 0.00 0.00 0.00 22975479.55
Garment Co.Ltd.Shenzhen
Shenfang
Property 1713186.55 0.00 0.00 0.00 0.00 0.00 1713186.55 0.00
Management
Co. Ltd.Shenzhen
Shenfang
Sungang
5827623.930.000.000.000.000.005827623.930.00
Property
Management
Co. Ltd.
166Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Total 1925861980.67 37390767.64 0.00 0.00 0.00 0.00 1925861980.67 37390767.64
(2) Investments in associates and joint ventures
In RMB
Increase/decrease in this period
Balance of
Beginning Equity method Cash
Beginning Adjustment of provision for
Investment balance of affirmative Other dividends or Withdrawal of Ending balance
balance (book Add Decreased other impairment
unit provision for profit and loss equity profits impairment Others (book value)
value) investment investment comprehensive as at the end
impairment on changes declared to provision
income of the period
investments be paid
I. Joint ventures
Shenzhen
Guanhua
Printing & 104274952.84 0.00 0.00 0.00 -3449190.76 0.00 0.00 0.00 0.00 0.00 100825762.08 0.00
Dyeing Co.Ltd.Subtotal 104274952.84 0.00 0.00 0.00 -3449190.76 0.00 0.00 0.00 0.00 0.00 100825762.08 0.00
2. Affiliated Company
Shenzhen
Changlianfa
Printing and 3308634.07 0.00 0.00 0.00 137757.74 0.00 0.00 -241500.00 0.00 0.00 3204891.81 0.00
dyeing
Company
Subtotal 3308634.07 0.00 0.00 0.00 137757.74 0.00 0.00 -241500.00 0.00 0.00 3204891.81 0.00
Total 107583586.91 0.00 0.00 0.00 -3311433.02 0.00 0.00 -241500.00 0.00 0.00 104030653.89 0.00
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□Applicable ?Not applicable
Reasons for the obvious inconsistency between the above information and the information used in previous
impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in previous years and
the actual situation of the current year
(3) Other notes
None
4. Operating revenue and operating costs
In RMB
Rewards for the key Amount in the current period Amount in the previous period
management
personnel Items Business income Business cost Business income Business cost
167Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Income from Main
Business 37217931.31 5231095.08 37694268.56 5050078.15
Other business 0.00 0.00 903094.00 684545.01
Total 37217931.31 5231095.08 38597362.56 5734623.16
Breakdown of operating revenue and operating costs:
In RMB
Property leasing Tota
Contract classification
Turnover Operation cost Turnover Operation cost
Business type 37217931.31 5231095.08 37217931.31 5231095.08
Including:
Property leasing 37217931.31 5231095.08 37217931.31 5231095.08
Classification by business area 37217931.31 5231095.08 37217931.31 5231095.08
Including:
Domestic 37217931.31 5231095.08 37217931.31 5231095.08
Total 37217931.31 5231095.08 37217931.31 5231095.08
Information related to performance obligations:
None
Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been signed but not
performed or not fully performed yet at the end of the reporting period is RMB 0.00 of which RMB 0.00 is expected to
be recognized as revenue in 2026 RMB0.00 is expected to be recognized in 2027 and RMB0.00 is expected to be
recognized in 2028.
5. Investment income
In RMB
Rewards for the key management
personnel Items Amount in the current period Amount in the previous period
Income from long-term equity
investment measured by adopting 5200000.00 4200000.00
the cost method
Income from long-term equity
investment measured by adopting -3311433.02 -3645599.07
the equity method
Investment income of trading
financial assets during the holding 2462280.90 3345206.16
period
Dividend income from investments in
other equity instrument during the 750000.00 748000.00
holding period
Total 5100847.88 4647607.09
168Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
6. Others
None
XIX. Supplementary information
1. Breakdown of current non-recurring profit or loss
?Applicable □Not applicable
In RMB
Rewards for the key management
personnel Items Amount Description
Profit or loss from disposal of non- -21479.04 Mainly the losses on write-off of fixedcurrent assets assets
Government grants included in profit
and loss of the current period (except
for government subsidies that are
closely related to the Company's
normal business operation comply 690798.69 Mainly government subsidies.with national policies and are enjoyed
in accordance with defined criteria
and have a continuing impact on the
Company's profit or loss)
Losses/gains from changes of fair
values occurred in holding trading
financial assets and trading financial
liabilities and investment income Mainly gains and losses from
obtaining from the disposal of trading changes in fair value arising from the
financial assets trading financial 2258321.04 company's holding of trading financial
liability and financial assets available- assets and derivative financial
for-sale excluded effective hedging liabilities.business relevant with normal
operations of the Company
Reversal of the account receivable
depreciation reserves subject to 5003582.71
separate impairment test
Other non-business income and
expenditures other than the above -577522.61
Mainly the litigation compensation
expenses.Less :Influenced amount of income
tax 513944.52
Influenced amount of minor
shareholders’ equity (after tax) -43356.09
Total 6883112.36 --
2. Return on net assets and earnings per share
Earnings per share
Profit of report period Weighted average ROE(%) Basic earning per Diluted gains per
share(Yuan/Share) share(Yuan/Share)
Net profit attributable to the 1.70% 0.1002 0.1002
169Full text of 2026 Semi-annual Report of Shenzhen Textile (Holdings) Co. Ltd.
Common stock
shareholders of Company.Net profit attributable to the
Common stock
shareholders of Company 1.47% 0.0867 0.0867
after deducting of non-
recurring gain/loss.Shenzhen Textile (Holding) Co. Ltd.Board of Directors
26?August?2026
170
沪公网安备31011802005267号
