Shenzhen Textile (Holdings) Co. Ltd.The Semi-Annual Financial Report 2023
August 2023Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
I. Audit report
Has this semi-annual report been audited
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co. Ltd.June 302023
In RMB
Items June 302023 January 12023
Current asset：
Monetary fund 616242142.99 991789968.19
Settlement provision
Outgoing call loan
Transactional financial assets 613554063.16 319605448.44
Derivative financial assets
Note receivable 56718590.38 74619100.26
Account receivable 854907728.96 636583469.93
Financing of receivables 22863088.36 54413796.91
Prepayments 29658881.12 18391444.67
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 3393141.86 10585975.38
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 663102543.53 558447648.77
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 49663425.99 69535531.24
Total of current assets 2910103606.35 2733972383.79
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 132425526.41 134481835.74
Other equity instruments investment 167678283.27 167678283.27
Other non-current financial assets
2Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Real estate investment 121971877.49 126315834.76
Fixed assets 2133290574.66 2240221656.36
Construction in progress 36543522.56 38061619.60
Production physical assets
Oil & gas assets
Use right assets 16680916.70 15365393.88
Intangible assets 41720496.23 44192571.95
Development expenses
Goodwill
Long-germ expenses to be amortized 3459965.93 4470957.79
Deferred income tax asset 68718492.58 69823814.29
Other non-current asset 40252375.73 42553016.47
Total of non-current assets 2762742031.56 2883164984.11
Total of assets 5672845637.91 5617137367.90
Current liabilities
Short-term loans 8000000.00 7000000.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 15284993.54
Account payable 437489166.07 327049873.70
Advance receipts 1164665.15 1393344.99
Contract liabilities 4975276.30 4274109.40
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 57267795.28 61166444.90
Tax payable 6033241.05 8897312.51
Other account payable 187021282.45 197345455.37
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 107490031.64 104183438.22
Other current liability 74149887.64 92945741.78
Total of current liability 898876339.12 804255720.87
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 557148599.34 607421585.00
Bond payable
Including：preferred stock
Sustainable debt
Lease liability 10357763.45 8628672.71
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 104754078.27 117814796.10
Deferred income tax liability 48518353.82 47974267.80
Other non-current liabilities
Total non-current liabilities 720778794.88 781839321.61
Total of liability 1619655134.00 1586095042.48
Owners’ equity
Share capital 506521849.00 506521849.00
3Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1961599824.63 1961599824.63
Less：Shares in stock
Other comprehensive income 109830200.11 109596609.31
Special reserve
Surplus reserves 100909661.32 100909661.32
Common risk provision
Retained profit 176552462.98 170636610.95
Total of owner’s equity belong to the
2855413998.042849264555.21
parent company
Minority shareholders’ equity 1197776505.87 1181777770.21
Total of owners’ equity 4053190503.91 4031042325.42
Total of liabilities and owners’ equity 5672845637.91 5617137367.90
Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Huang Min
2.Parent Company Balance Sheet
In RMB
Items June 302023 January 12023
Current asset：
Monetary fund 128173826.37 426042455.28
Transactional financial assets 593512060.11 319605448.44
Derivative financial assets
Note receivable
Account receivable 18004264.58 15643024.11
Financing of receivables
Prepayments 1406419.78 0.00
Other account receivable 14116168.90 14132756.62
Including：Interest receivable
Dividend receivable
Inventories 18993.95 26237.85
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset
Total of current assets 755231733.69 775449922.30
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 2090375024.50 2092431333.83
Other equity instruments investment 151618842.39 151618842.39
Other non-current financial assets
Real estate investment 97823054.11 101190712.85
Fixed assets 10806016.97 11346585.35
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
4Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Intangible assets 249098.82 308243.90
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset 25760086.27 25997082.15
Total of non-current assets 2376632123.06 2382892800.47
Total of assets 3131863856.75 3158342722.77
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 411743.57 411743.57
Advance receipts 540673.07 691160.58
Contract liabilities
Employees’ wage payable 13987952.68 18510589.33
Tax payable 3684645.18 7121466.14
Other account payable 111540100.53 113736371.24
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability
Total of current liability 130165115.03 140471330.86
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income 250000.00 300000.00
Deferred income tax liability 44905468.47 44363868.30
Other non-current liabilities
Total non-current liabilities 45155468.47 44663868.30
Total of liability 175320583.50 185135199.16
Owners’ equity
Share capital 506521849.00 506521849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1577392975.96 1577392975.96
Less：Shares in stock
Other comprehensive income 98910619.45 98855668.75
Special reserve
Surplus reserves 100909661.32 100909661.32
Retained profit 672808167.52 689527368.58
Total of owners’ equity 2956543273.25 2973207523.61
Total of liabilities and owners’ equity 3131863856.75 3158342722.77
5Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
3.Consolidated Income statement
In RMB
Items The first half year of 2023 The first half year of 2022
I. Income from the key business 1490095669.55 1445137309.09
Incl：Business income 1490095669.55 1445137309.09
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1412490369.86 1353000511.71
Incl：Business cost 1286170472.71 1242988094.06
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4397329.78 4171362.18
Sales expense 16439473.30 18355747.39
Administrative expense 65299409.82 61448188.86
R & D costs 36004188.62 34870992.66
Financial expenses 4179495.63 -8833873.44
Including：Interest expense 13965081.41 15882534.27
Interest income 5318571.16 773863.34
Add: Other income 19369307.55 10780654.48
Investment gain（“-”for loss） 7743354.69 11043172.52
Incl: investment gains from affiliates -2111260.03 1658532.04
Financial assets measured at amortized cost cease to be recognized
as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss -8669369.85 -2985253.53
Impairment loss of assets -35512897.29 -42073672.20
Assets disposal income 321.08 -11114.72
III. Operational profit（“-”for loss） 60536015.87 68890583.93
Add ：Non-operational income 401387.79 1768115.05
Less: Non-operating expense 3037581.05 213090.29
IV. Total profit(“-”for loss) 57899822.61 70445608.69
Less：Income tax expenses 5713017.38 340897.81
V. Net profit 52186805.23 70104710.88
(I) Classification by business continuity
1.Net continuing operating profit 52186805.23 70104710.88
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company 36307162.97 42433525.10
2.Minority shareholders’ equity 15879642.26 27671185.78
VI. Net after-tax of other comprehensive income 352684.20 75756.02
Net of profit of other comprehensive income attributable to owners 233590.80 75756.02
of the parent company.（I）Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net
6Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
assets
2.Other comprehensive income under the equity method investee c
an not be reclassified into profit or loss.
3. Changes in the fair value of investments in other equity
instruments
4. Changes in the fair value of the company’s credit risks
5.Other（II）
Other comprehensive income that will be reclassified into profit or 233590.80 75756.02
loss.
1.Other comprehensive income under the equity method investee c
an be reclassified into profit or loss.
2. Changes in the fair value of investments in other debt obligations 178640.10
3. Other comprehensive income arising from the reclassification of
financial assets
4.Allowance for credit impairments in investments in other debt
obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 54950.70 75756.02
7.Other
Net of profit of other comprehensive income attributable to Minorit
119093.40
y shareholders’ equity
VII. Total comprehensive income 52539489.43 70180466.90
Total comprehensive income attributable to the owner of the parent
36540753.7742509281.12
company
Total comprehensive income attributable minority shareholders 15998735.66 27671185.78
VIII. Earnings per share
（I）Basic earnings per share 0.0717 0.0838
(II)Diluted earnings per share 0.0717 0.0838
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Yin Kefei
Person-in-charge of the accounting work：He Fei
Person-in -charge of the accounting organ：Huang Min
4. Income statement of the Parent Company
In RMB
The first half The first half
Items
year of 2023 year of 2022
I. Income from the key business 39239619.43 21156669.75
Incl：Business cost 4156707.01 5203409.57
Business tax and surcharge 1518980.53 1379026.92
Sales expense 103182.40 61120.10
Administrative expense 24244619.96 20247344.52
R & D expense
Financial expenses -1137285.05 -246370.02
Including：Interest expenses
Interest income 1206551.01 227023.28
Add：Other income 103012.52 181448.97
Investment gain（“-”for loss） 7701351.64 11334212.84
Including: investment gains from affiliates -2111260.03 1658532.04
Financial assets measured at amortized cost cease to be recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss -38616.99 -106152.94
Impairment loss of assets
7Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Assets disposal income
II. Operational profit（“-”for loss） 18119161.75 5921647.53
Add ：Non-operational income
Less：Non -operational expenses 263.13 100000.00
III. Total profit(“-”for loss) 18118898.62 5821647.53
Less：Income tax expenses 4446788.74 262406.66
IV. Net profit 13672109.88 5559240.87
1.Net continuing operating profit 13672109.88 5559240.87
2.Termination of operating net profit
V. Net after-tax of other comprehensive income 54950.70 75756.02
（I）Other comprehensive income items that will not be reclassified into gains/losses in
the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be reclassified i
nto profit or loss.
3. Changes in the fair value of investments in other equity instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or loss 54950.70 75756.02
1.Other comprehensive income under the equity method investee can be reclassified into
profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial assets
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements 54950.70 75756.02
7.Other
VI. Total comprehensive income 13727060.58 5634996.89
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1289316287.70 1337065239.48
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned 2508619.13 2595000.19
Other cash received from business operation 77994829.70 287019693.63
Sub-total of cash inflow 1369819736.53 1626679933.30
Cash paid for purchasing of merchandise and services 1119566064.13 1225526384.08
Net increase of client trade and advance 0.00 0.00
Net increase of savings in central bank and brother company 0.00 0.00
8Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Cash paid for original contract claim 0.00 0.00
Net increase in financial assets held for trading purposes 0.00 0.00
Net increase for Outgoing call loan 0.00 0.00
Cash paid for interest processing fee and commission 0.00 0.00
Cash paid to staffs or paid for staffs 132029182.07 132733244.30
Taxes paid 25728838.24 139777733.09
Other cash paid for business activities 78092678.49 49204337.24
Sub-total of cash outflow from business activities 1355416762.93 1547241698.71
Net cash generated from /used in operating activities 14402973.60 79438234.59
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 1456000.00 2636054.80
Net cash retrieved from disposal of fixed assets intangible assets
7050.002776.70
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
0.000.00
units
Other investment-related cash received 195000000.00 635000000.00
Sub-total of cash inflow due to investment activities 196463050.00 637638831.50
Cash paid for construction of fixed assets intangible assets and
13286475.0731252419.31
other long-term assets
Cash paid as investment 0.00 0.00
Net increase of loan against pledge 0.00 0.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 631537000.00 650000001.00
Sub-total of cash outflow due to investment activities 644823475.07 681252420.31
Net cash flow generated by investment -448360425.07 -43613588.81
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 3000000.00 50572000.00
Other financing –related cash received 0.00 0.00
Sub-total of cash inflow from financing activities 3000000.00 50572000.00
Cash to repay debts 49284364.34 0.00
Cash paid as dividend profit or interests 44088760.65 40857882.81
Including: Dividend and profit paid by subsidiaries to minor
0.000.00
shareholders
Other cash paid for financing activities 4141770.57 0.00
Sub-total of cash outflow due to financing activities 97514895.56 40857882.81
Net cash flow generated by financing -94514895.56 9714117.19
IV. Influence of exchange rate alternation on cash and cash
-318751.44713784.26
equivalents
V.Net increase of cash and cash equivalents -528791098.47 46252547.23
Add: balance of cash and cash equivalents at the beginning of term 874474834.46 302408433.72
VI ..Balance of cash and cash equivalents at the end of term 345683735.99 348660980.95
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 39612023.57 30439993.40
Tax returned 1636664.57 200005.60
Other cash received from business operation 1679622.51 8775816.77
Sub-total of cash inflow 42928310.65 39415815.77
Cash paid for purchasing of merchandise and services 6111142.09 5066002.25
Cash paid to staffs or paid for staffs 22248006.25 16859518.32
Taxes paid 12755344.10 3475718.60
9Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Other cash paid for business activities 3654514.20 9214911.23
Sub-total of cash outflow from business activities 44769006.64 34616150.40
Net cash generated from /used in operating activities -1840695.99 4799665.37
II. Cash flow generated by investing
Cash received from investment retrieving 0.00 0.00
Cash received as investment gains 1456000.00 2636054.80
Net cash retrieved from disposal of fixed assets intangible assets
0.000.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
0.000.00
units
Other investment-related cash received 135000000.00 635000000.00
Sub-total of cash inflow due to investment activities 136456000.00 637636054.80
Cash paid for construction of fixed assets intangible assets and
512293.90238180.00
other long-term assets
Cash paid as investment 0.00 0.00
Net cash received from subsidiaries and other operational units 0.00
Other cash paid for investment activities 401537000.00 650000001.00
Sub-total of cash outflow due to investment activities 402049293.90 650238181.00
Net cash flow generated by investment -265593293.90 -12602126.20
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received
Sub-total of cash inflow from financing activities
Cash to repay debts
Cash paid as dividend profit or interests 30406699.21 25326092.45
Other cash paid for financing activities 0.00 0.00
Sub-total of cash outflow due to financing activities 30406699.21 25326092.45
Net cash flow generated by financing -30406699.21 -25326092.45
IV. Influence of exchange rate alternation on cash and cash
-27939.810.00
equivalents
V.Net increase of cash and cash equivalents -297868628.91 -33128553.28
Add: balance of cash and cash equivalents at the beginning of term 310322528.19 130236340.98
VI ..Balance of cash and cash equivalents at the end of term 12453899.28 97107787.70
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity Oth Min
Co Tota
instrument Less er or
Spe mm l of
Items Shar sharPre Capi : Co Surp Retaciali on own
e ferr tal Shar mpr lus ined Oth Subt
ehol
Sus zed risk ers’
Capi Oth rese es in ehen rese prof er otal ders’
ed rese prov equi
tal tain er rves stoc sive rves it equi
stoc abl rve isio
ty
k Inco ty
k n e me
10Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
deb
t
506196109100170284118403
I .Balance at
521159596909636926177104
the end of
last year 849. 982 609. 661. 610. 455 777 232
004.633132955.210.215.42
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II. Balance at 506 196 109 100 170 284 118 403
the 521 159 596 909 636 926 177 104
beginning of 849. 982 609. 661. 610. 455 777 232
current year 00 4.63 31 32 95 5.21 0.21 5.42
159221
III .Changed 233 591 614
987481
in the current 590. 585 944
year 35.6 78.480 2.03 2.83
69
363365159525
（1）Total 233
071407987394
comprehensi 590.
62.953.735.689.4
ve income 80
7763（II）
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
---
303303303（III）Profit
913913913
allotment
10.910.910.9
444
1.Providing
of surplus
reserves
11Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
2.Providing
of common
risk
provisions
---
3．Allotmen 303 303 303
t to the
913913913
owners (or
shareholders) 10.9 10.9 10.9
444
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
506196109100176285119405
IV. Balance
521159830909552541777319
at the end of
this term 849. 982 200. 661. 462. 399 650 050
004.631132988.045.873.91
Amount in last year
In RMB
The first half year of 2022
Items Owner’s equity Attributable to the Parent Company Min Tota
Shar Other Equity Capi Less Oth Spe Surp Co Reta Oth Subt or l of
e instrument tal : er ciali lus mm ined er otal shar own
12Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Capi rese Shar Co zed rese on prof ehol ers’ Pref
tal rves es in mpr rese rves risk it ders’ equi
erre Sust Oth stoc ehen rve prov equi ty
d aina
er k sive isio ty stoc ble
Inco n
k debt
me
506196119982130281114396
I .Balance at
521159682458746679703382
the end of
last year 849. 982 119. 45.4 251. 588 335 924
004.63057749.897.187.07
Add: Change
of
accounti 0.00
ng
policy
Correcting of
previous 0.00
errors
Merger of
entities under
0.00
common
control
Other 0.00
II.Balance at 506 196 119 982 130 281 114 396
the 521 159 682 458 746 679 703 382
beginning of 849. 982 119. 45.4 251. 588 335 924
current year 00 4.63 05 7 74 9.89 7.18 7.07
171171276448
III .Changed 757
074831711543
in the current 56.0
year 32.6 88.6 85.7 74.42
5785
424425276701
（1）Total 757
335092711804
comprehensi 56.0
25.181.185.766.9
ve income 2
0280（II）
Investment
or decreasing 0.00
of capital by
owners
1．Ordinary
Shares invest
0.00
ed by shareh
olders
2．Holders o
f other equity
instruments i 0.00
nvested capit
al
3．Amount
of shares
paid and
0.00
accounted as
owners’
equity
4．Other 0.00
---
253253253（III）Profit
260260260
allotment
92.492.492.4
555
13Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
---
3．Allotmen
253253253
t to the
260260260
owners (or
shareholders) 92.4 92.4 92.4
555
4．Other 0.00
(IV) Internal
transferring
0.00
of owners’
equity
1.
Capitalizing
of capital
0.00
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
0.00
reserves (or
to capital
shares)
3．Making
up losses by
0.00
surplus
reserves.
4.Change
amount of
defined
benefit plans
0.00
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
0.00
carry-over
retained
earnings
6．Other 0.00
(V). Special
0.00
reserves
1. Provided
0.00
this year
2．Used this
0.00
term（VI）Other 0.00
506196119982147283117400
IV. Balance
521159757458853397470868
at the end of
this term 849. 982 875. 45.4 684. 907 454 362
004.63077398.562.961.52
14Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument Other
Total
Capita Less: Comp Specia SurpluItems Retain of Share Prefer l Shares rehens lized s
Sustai ed Other owner
capital red Other reserv in ive reserv reserv
nable profit s’
stock es stock Incom e es
debt equity e
I.Balance at 5065 1577 9885 1009 6895 2973
the end of 2184 3929 5668. 0966 2736 2075
last year 9.00 75.96 75 1.32 8.58 23.61
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506515779885100968952973
the
218439295668.096627362075
beginning of
9.0075.96751.328.5823.61
current year
--
III .Changed
549516711666
in the current
0.709201.4250.
year
0636
（I）Total 1367 1372
5495
comprehensi 2109. 7060.
0.70
ve income 88 58
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
--（III）Profit
30393039
allotment
1310.1310.
15Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
9494
1.Providing
of surplus
reserves
2．Allotmen - -
t to the 3039 3039
owners (or 1310. 1310.shareholders) 94 94
3．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 9891 1009 6728 2956
at the end of 2184 3929 0619. 0966 0816 5432
this term 9.00 75.96 45 1.32 7.52 73.25
Amount in last year
In RMB
The first half year of 2022
Other Equity instrument Other
Total
Capita Less: Comp Specia Surplu
Items Share Retain of Prefer l Shares rehens lized s
Capita ed Other owner
reserv in ive reserv reserv
l red Sustai Other profit s’
stock es stock Incom e es nable equity
e
16Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
debt
I.Balance at 5065 1577 1087 9824 6908 2981
the end of 2184 3929 6253 5845. 7911 8023
last year 9.00 75.96 8.39 47 8.40 27.22
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Other
II. Balance at
506515771087982469082981
the
2184392962535845.79118023
beginning of
9.0075.968.39478.4027.22
current year
--
III. Changed
757519761969
in the current
6.026851.1095.
year
5856
（I）Total 5559 5634
7575
comprehensi 240.8 996.8
6.02
ve income 7 9
(II)
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3.Amount of
shares paid
and
accounted as
owners’
equity
4．Other
--（III）Profit 2532 2532
allotment 6092. 6092.
4545
1.Providing
of surplus
reserves
2．Allotmen - -
t to the 2532 2532
owners (or 6092. 6092.shareholders) 45 45
3．Other
(IV) Internal
transferring
17Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided
this year
2．Used this
term（VI）Other
IV. Balance 5065 1577 1088 9824 6711 2962
at the end of 2184 3929 3829 5845. 1226 11123
this term 9.00 75.96 4.41 47 6.82 1.66
III. Basic Information of the Company
Shenzhen Textile (Holdings) Co. Ltd (hereinafter referred to as "the Company") is a company limited by
shares registered in Guangdong Province formerly known as Shenzhen Textile Industry Company and
established in 1984. The Company was listed on the Shenzhen Stock Exchange in August 1994. The Company
publicly issued RMB ordinary shares (A shares) and domestic listed foreign capital shares (B shares) to the
domestic and foreign public respectively and listed them 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 and textile and garment business.Details of the scope of the consolidated financial statement for the year are set out in the Note (X)
9"Interests in other entities". Changes in the scope of the consolidated financial statement for the year are set
out in Note (X)8 "Changes in the Scope of Consolidation".
18Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and its application guidelines interpretations and other relevant
provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition the
Company also disclosed relevant financial information in accordance with the Rules No.15 for the Information
Disclosure and Compilation of Companies Offering Securities Public Issuance - General Provisions on
Financial Report (revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuous operation
The Group evaluated its ability to continue as a going concern for the 12 months from 31 December 2022
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) Bookkeeping 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 observable or estimated using valuation techniques the fair value measured and disclosed in this financial
report is determined on that basis.For financial assets that use the transaction price as the fair value at the time of initial recognition and a
valuation technique involving unobservable inputs is used in subsequent measures of fair value the valuation
technique is corrected during the valuation process so that the initial recognition result determined by the
valuation technique is 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. Important accounting policies and accounting estimates
19Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
1.Statement of compliance with accounting standards for business enterprises
The financial report prepared by the Company complies with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflects the consolidated and parent financial
position of the Company as of June 30 2023 and the consolidated and parent operating results the consolidated
and parent shareholders' equity changes and the consolidated and parent cash flows for the first half 2023.
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.Business 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. The base currency of account
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.
5. Accounting treatment of business combinations under the common control and under non-
common control
Business combinations are divided into business combinations under common control and business
combinations under non-common control.
（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.Assets and liabilities acquired in a business combination are measured at their 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 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.
（2）Business combinations and goodwill under non-common control
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.
20Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.The identifiable assets liabilities and contingent liabilities of the acquiree that are eligible for recognition
acquired by the purchaser in the merger are measured at fair value at the date of purchase.The cost of the merger is greater than the difference in the fair value share of the acquiree's identifiable net
assets acquired in the merger which is recognized as goodwill as an asset 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.
6. Methodology for the preparation of consolidated financial statement
The consolidated scope of the consolidated financial statement is determined on a control basis. Control
means that the investor has power over the investee enjoys variable returns by participating in the investee's
related activities and has the ability to use its power over the investee to influence the amount of its return. The
Group will reassess once changes in the relevant facts and circumstances result in a change in the relevant
elements covered by the above definition of control.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.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.The impact of the Company's internal transactions with its subsidiaries and between subsidiaries on the
consolidated financial statement is offset at the time of consolidation.
21Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
The shares of the subsidiary's ownership interest that are not part of the parent company are shown as
minority interests under the item "minority interests" under the item on shareholders' equityin 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.
7. Classification of joint venture arrangement classifications and accounting treatment methods for
joint operations
Joint arrangements are divided into commonly-operated ventures and jointly-operated ventures which are
determined in accordance with the rights and obligations of the joint venture parties in the joint venture
arrangement by taking into account factors such as the structure legal form and contractual terms of the
arrangement. 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 by using the equity method please see Note (X)5
22"Long-term equity investments ".(3) subsequent measurement and profit and loss recognition method 2)
Long-term equity investment calculated by the equity method ".
8. Standards for determining 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.
9.Foreign currency transactions and translation of foreign currency statements
（1） Foreign Currency Business
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 the balance sheet date foreign currency monetary items are converted into RMB using the spot
exchange rate on that date and the exchange difference arising from the difference between the spot exchange
rate on that date and the spot exchange rate at the time of initial recognition or the day preceding the balance
22Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
sheet date except: (1) the exchange difference of foreign currency special borrowings eligible for capitalization
is capitalized during the capitalization period and included in the cost of the underlying asset; (2) The exchange
difference of hedging instruments for hedging in order to avoid foreign exchange risk is treated according to the
hedge accounting method; (3) 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. Foreign currency non-monetary items
measured at fair value are translated using the spot exchange rate on the fair value determination date and the
difference between the converted base currency amount and the original accounting currency amount is treated
as a change in fair value (including exchange rate changes) and recognized as profit or loss for the period or
recognized as other comprehensive income.
（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".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.Where disposing of part of the equity of an overseas operation in an associate or a joint venture the difference
23Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
in the translation of foreign currency statements related to the overseas operation shall be transferred to the
profit or loss of the period of disposal according to the proportion of the disposal of the overseas operation.
10.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 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. Where the Group initially recognizes accounts receivable that do not contain a material financing
component or do not take into account the financing component in a contract not older than one year in
accordance with No. 14Accounting Standard for Business Enterprises-Revenue (the "Revenue Standard") the
initial measurement is made at the transaction price as defined by 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.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).
（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.The contractual terms of a financial asset provide that the cash flows generated at a particular date are only
the payment of principal and interest based on the outstanding principal amount and the Group's business
24Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
model for managing the financial asset is aimed at both the receipt of contractual cash flows and the sale of the
financial asset then the financial asset is classified as a financial asset measured at fair value and the change
therein is recognized in 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 underlying financial asset is a derivative instrument except for derivatives that meet the definition of a
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 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 and changes in which are recorded in profit or loss for the period
are shown in trading financial assets and financial assets with maturity of more than one year (or have an
indefinite maturity) from the balance sheet date and expected to be held for more than one year is shown as
other non-current financial assets
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
25Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
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.
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.
（2）Impairment of Financial Instruments
The Group performs impairment accounting and recognizes loss provisions for financial assets measured at
amortized cost financial assets classified as measured at fair value and changes in which are recognized in
other comprehensive income and lease receivables based on expected credit losses.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 the Group assesses the change in the credit risk of the relevant financial
instruments since initial recognition at each balance sheet date except for financial assets purchased or derived
that have incurred credit impairment. 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
26Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
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:
(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 business financial or economic circumstances that is
expected to result in a significant change in the debtor's ability to meet its debt servicing obligations.
(7) whether there has been a significant change in the actual or expected operating results of the debtor.
(8) whether the credit risk of other financial instruments issued by the same debtor has increased
significantly.
27Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(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.
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.
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:
a) significant financial difficulties of the issuer or debtor;
b) Breach of contract by the debtor such as default or delay in payment of interest or principal;
c) 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;
d) The debtor is likely to go bankrupt or undergo other financial restructuring;
e) The financial difficulties of the issuer or debtor that result in the disappearance of an active market for that
financial asset;
28Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
f) 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 the Group considers an event of default to have
occurred when the internally advised or externally obtained information indicates that the debtor of the
financial instrument cannot fully pay creditors including the Group (without regard to any security obtained
by the Group).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.
3）Determination of Expected Credit Loss
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.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.
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.
（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:
29Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Where the transferred financial assets are measured at amortized cost the carrying amount of the relevant
liability is equal to the carrying amount of the financial asset that continues to be involved in the transferred less
the amortized cost 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 amortized cost of the obligations assumed by the group (if the group has
assumed the relevant obligations as a result of the transfer of financial assets) and the relevant liabilities are not
designated as financial liabilities measured at fair value and changes in which are recorded in profit or loss for
the period.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 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.
（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.
1) Classification recognition and measurement of financial liabilities
30Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Financial liabilities are divided into financial liabilities measured at fair value and whose changes are
included in current profits and losses at initial recognition and other financial liabilities.* Financial liabilities measured at fair value and whose changes are included in the current profits and losses
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.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 the accounting mismatch in profit
and loss will be caused or enlarged by handling the impact of the changes in credit risk of these financial
liabilities in the above way the Group will include all the gains or losses of the financial liabilities
(including the amount affected by the changes in credit risk) in the current profits and losses.* 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
31Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
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.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.
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.
（5）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. In addition financial assets
and financial liabilities are listed separately in the balance sheet and do not offset each other.
11. Notes receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
32Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
12. Accounts receivable
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
13. Receivable financing
For notes receivable classified as at fair value and whose changes are included in other comprehensive
income the part with a term of one year (including one year) from the date of acquisition is listed as receivable
financing; the part with a term of more than one year from the date of acquisition is listed as other creditor's
right investment. See Note (X) 5 "Financial Instruments" for relevant accounting policies.
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivables
Please refer to the"10. Financial Instruments" of "V. Significant Accounting Policies and Accounting
Estimates" of "Section 10 Financial Reporting" of this report.
15. Inventory
（1）Classification of inventory
The Group's inventory mainly includes raw materials products in process finished products and materials
entrusted for processing. Inventory is initially measured at cost which includes purchasing cost processing cost
and other expenses incurred to make inventory reach the current place and use state.
（2）Valuation method of issued inventory
When the inventory is issued the actual cost of the issued inventory is determined by the weighted mean
method.
（3）Determination basis of net realizable value of inventory
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 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 inventory depreciation provision is withdrawn if the influencing factors of previous write-down
of inventory value have disappeared resulting in the net realizable value of inventory being higher than its book
value it will be reversed within the original amount of inventory depreciation provision and the reversed
amount will be included in the current profits and losses.
（4）Inventory system
33Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
The inventory system is perpetual inventory system.
（5）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.Contract assets
None
17.Contract Cost
None
18.Held-for-sale assets
None
19.Creditor's rights investment
None
20.Other Creditor's rights investment
None
21.Long-term account receivable
None
22. Long-term equity investment
（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 investee can be controlled or
exert significant influence the potential voting rights factors such as convertible corporate bonds and current
executable warrants of the investee held by investors and other parties have been considered.
（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
34Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.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.
（3）Subsequent measurement and profit and loss recognition method
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.
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
associated enterprise refers to the investee over which the Group can exert significant influence and a joint
venture refers to a joint venture arrangement in which the Group has rights only over the net assets of the
arrangement.When accounting by equity method if the initial investment cost of long-term equity investment is greater than
the fair value share of the identifiable net assets of the investee the initial investment cost of long-term equity
investment will not be 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
35Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.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.
（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. For the long-term equity investment accounted by
the equity method if the remaining equity after disposal is still accounted by the equity method other
comprehensive income originally accounted by the equity method shall be accounted for on the same basis as
the direct disposal of related assets or liabilities by the investee; 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 the long-term equity investment accounted
for by the cost method is still accounted for by the cost method after disposal the other comprehensive income
recognized by the equity method accounting or the recognition of financial instruments and accounting
standards before gaining control of the investee shall be accounted for on the same basis as the direct disposal
of related assets or liabilities by the investee; Changes in owners' equity other than net profit and loss other
comprehensive income and profit distribution in the net assets of the investee recognized by using the equity
method are carried forward to the current profits and losses in proportion.If the Group loses control of the investee due to the disposal of part of its equity investment if the
remaining equity after disposal can exercise joint control or exert significant influence on the investee in the
preparation of individual financial statements it shall be accounted for by the equity method instead and the
remaining equity shall be treated as if it were adjusted by the equity method at the time of 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
36Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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 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.
23. Investment real estate
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 adopts the cost model for subsequent measurement of investment real estate and depreciates or
amortizes it according to the policy consistent with the right to use houses buildings or land.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.
24. 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.
37Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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
Fixed assets shall be depreciated within their service life by using the life-average method from the month
following the scheduled serviceable state. The depreciation methods service life estimated net salvage and
annual depreciation rate of various fixed assets are as follows:
Estimated net salvage rate Annual depreciation rate
Category Depreciation life (year)
(%)(%)
Houses and buildings 10-40 0.00-4.00 2.40-10.00
Machinery equipment 10-14 4.00 6.86-9.60
Transportation equipment 8 4.00 12.00
Electronic equipment and others 5 4.00 19.20
Estimated net salvage refers to the amount that the Group currently obtains from the disposal of fixed
assets after deducting the estimated disposal expenses assuming that the expected service life of the fixed assets
has expired and is in the expected state at the end of the service life.
（3）Other instructions
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.
（4）Cognizance evidence and pricing method of financial leasing fixed assets
None
25. Construction in progress
The construction in progress is measured according to the actual cost which includes various project
expenditures incurred during the construction period capitalized borrowing costs before the project reaches the
scheduled serviceable state and other related expenses. No depreciation is allowed for construction in progress.Construction in progress is carried forward to fixed assets after it reaches the scheduled serviceable state.
26. 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
38Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
27.Biological Assets
None
28.Oil & Gas assets
None
29. Right to use assets
None
30. Intangible assets
（1） Valuation method service life and impairment test of intangible assets
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 (%)
Land use right Straight-line method 50 -
Software Straight-line method 5 -
Patent Straight-line method 15 -
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.For the impairment test of intangible assets please refer to Note (V) 19 "Impairment of Long-term Assets"
for details.
（2） Internal R&D expenditure
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;
39Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(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 intangible assets
formed by internal development activities only includes the total expenditure from the time when the
capitalization conditions are met to the time when the intangible assets reach the intended use and the
expenditure that has been expensed into profit and loss before the capitalization conditions are met in the
development process will not be adjusted.
31. Long-term asset impairment
On each balance sheet date the Group checks whether there are signs that long-term equity investment
investment real estate measured by cost method fixed assets construction in progress right-to-use assets and
intangible assets with definite service life may be impaired. 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.
32. 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.
40Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
33. Contractual 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.
34. Employee Remuneration
（1） Accounting treatment method of short-term Remuneration
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.The social insurance premiums such as medical insurance premium work injury insurance premium and
maternity insurance premium and housing provident fund paid by the Group for employees as well as the trade
union funds and employee education funds withdrawn by the Group according to regulations shall be
calculated according to the stipulated accrual basis and accrual ratio during the accounting period when
employees provide services for the Group to determine the employee compensation amount and recognize the
corresponding liabilities and be included in the current profits and losses or related asset costs.
（2）Accounting treatment 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 treatment 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 Treatment Method of Other Long-term Employee Benefits
None
35.Lease liabilities
Please refer to the "42. Lease (1) The Company as a lessee 1) Lease liability" of "V. Significant
Accounting Policies and Accounting Estimates" of "Section 10 Financial Reporting" of this report
41Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
36. Estimated Liabilities
When the obligation related to contingencies such as customer return are the current obligations
undertaken by the Group and the fulfillment of this obligation is likely to lead to the outflow of economic
benefits and the amount of this 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.
37. Share-based payment
Share-based payment of the Group is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees. Share-based
payment of the Group is equity-settled share-based payment.
（1）Equity-settled share-based payment
Equity-settled share-based payment granted to employees
Equity-settled share-based payment in exchange for services provided by employees is measured by the
fair value of the equity instruments granted to employees on the grant date in the Group. During the waiting
period the amount of the fair value is based on the best estimate of the number of exercisable equity
instruments calculated by the straight-line method and included in the relevant costs or expenses and the
capital reserve is increased accordingly.On each balance sheet date during the waiting period the Group makes the best estimate based on the
latest subsequent information such as changes in the number of employees with vesting rights and corrects the
number of equity instruments with estimated vesting rights. The impact of the above estimate is included in the
relevant costs or expenses of the current period and the capital reserve is adjusted accordingly.
（2）Accounting treatment related to implementation modification and termination of share-based
payment plan
When the Group modifies the share-based payment plan if the modification increases the fair value of the
equity instruments granted the increase in services obtained will be recognized accordingly; If the modification
increases the number of equity instruments granted the fair value of the increased equity instruments will be
recognized as an increase in service acquisition accordingly. The increase in the fair value of equity
instruments refers to the difference between the fair value of equity instruments before and after modification
on the modification date. If the total fair value of share-based payment is reduced or the terms and conditions
of the share-based payment plan are modified in other ways that are unfavorable to employees the accounting
treatment for the services obtained will continue as if the change had never occurred unless the Group cancels
part or all of the equity instruments granted.During the waiting period if the granted equity instruments are cancelled the Group will accelerate the
cancellation of the granted equity instruments and immediately include the amount to be recognized in the
remaining waiting period in the current profits and losses and at the same time recognize the capital reserve. If
employees or other parties can choose to meet the conditions of unfeasible rights but fail to meet them within
the waiting period the Group will cancel them as the instrument for granting equity.
42Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Revenue
Accounting policies adopted in income recognition and measurement
The Group's income mainly comes from the following business:
(1) Polarizer sales;
(2) Textile sales;
(3) Property leasing and management;
(4) Other business.
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 by the Group during the
performance of the contract have irreplaceable purposes and the Group has the right to collect money for the
accumulated performance part completed so far during the whole contract period. Otherwise the Group
recognizes income at the point when the customer obtains control over the relevant goods or services.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 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
43Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.Please refer to Note (X) 5 "The Group as a lessor records the operating leasing business" for the
accounting policy of the Group's income recognition in property leasing.
40. 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.
（1）Judgment 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.
（2）Judgment 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.
44Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
41. Deferred income tax assets/Deferred income tax liabilities
Income tax expenses include current income tax and deferred income tax.
（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.
（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.
45Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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. If it is probable
that sufficient taxable income will not be obtained in the future to offset the benefits of deferred income tax
assets the book value of deferred income tax assets shall be written down. When sufficient taxable income is
likely to be obtained the amount written down will be reversed.
（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.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.
42. Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration
within a certain period of time.On the commencement date of the contract the Group evaluates whether the contract is a lease or contains
a lease. Unless the terms and conditions of the contract change the Group will not re-evaluate whether the
contract is a lease or contains a lease.
（1）The Group as the lessee
1）Split 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.
2）Right-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;
46Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
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. If the lease interest rate cannot be
determined the incremental loan interest rate is used as the discount rate.Lease payment refers to the amount paid by the Group to the lessor related to 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
47Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
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.
4）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.
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 change expands the lease scope by increasing the right to use one or more 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.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Group
will re-allocate the consideration of the changed contract re-determine the lease term and re-measure the lease
liabilities according to the present value calculated by the changed lease payment 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.
6）Policy-related rent concession
For the rent concessions reached between the Group and the lessor on the existing lease contract such as rent
reduction deferred payment etc. and the following conditions are met at the same time the Group chooses to
adopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that before
concession;
(2) After comprehensive consideration of qualitative and quantitative factors it is determined that other clauses
and conditions of the lease have not changed significantly.The Group continues to calculate the interest expense of lease liabilities at the same discount rate as before
concession and includes it in the current profits and losses and continues to carry out subsequent measurement
such as depreciation of right-to-use assets according to the same method as before concession. In case of rent
reduction the Group regards the reduced rent as a variable lease payment amount and when the original rent
payment obligation is terminated by reaching a concession agreement the relevant asset costs or expenses are
offset by the discounted amount at the discount rate before discounting or concession and the lease liabilities
are adjusted accordingly; If the rent payment is delayed the Group will offset the lease liabilities recognized in
the previous period when actually paying.For short-term leases with simplified treatment the Group continues to include the original contract rent in the
relevant asset cost or expense in the same way as before concession. In case of rent reduction the Group
48Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
regards the reduced rent as a variable lease payment and offsets the cost or expense of related assets during the
reduction period; If the payment of rent is delayed the Group will recognize the rent payable as payable in the
original payment period and offset the payable recognized in the previous period when actually paying.
（2）The Group as the lessor
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 No.14-Revenues on
transaction price allocation and the basis of allocation is the separate prices of the leased part and the non-
leased part.
2）Classification of lease
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.* 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.
（3）Lease change
If the operating lease is changed the Group will carry out accounting treatment on it as a new lease from
the effective date of the change and the lease receipts received in advance or receivable related to the lease
before the change will be regarded as the receipts of the new lease.
（4）Policy-related rent concession
For the rent concessions reached between the lessor and the lessor on the existing lease contract such as
rent reduction deferred payment etc. and the following conditions are met at the same time the Group chooses
to adopt the simplified method in the accounting treatment provisions of relevant policy rent reduction:
(1) The lease consideration after concession is reduced or basically unchanged compared with that before
concession;
(2) After comprehensive consideration of qualitative and quantitative factors it is determined that other
clauses and conditions of the lease have not changed significantly.For the operating lease of the Group's own property lease contract the Group continues to recognize the
original contract rent as lease income in the same way as before concession. In case of rent reduction the
Group regards the reduced rent as a variable lease payment and reduces the lease income during the reduction
period; If the rent collection is delayed the Group will recognize the rent that should be collected as receivables
in the original collection period and offset the receivables recognized in the previous period when it is actually
received.
49Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
43. Other important accounting policies and accounting estimates
None
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable √ Applicable
（2） Changes in accounting estimates
□ Applicable √ Applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the
year of first implementation due to the first implementation of new accounting standards from 2023.□ Applicable √ Applicable
45.Other
None
VI. Taxation
1. Main categories and rates of taxes
Tax category Tax basis Tax rate
The balance after deducting the deductible The output tax for domestic sales is calculated according
input tax from the output tax; The tax to 13% 9% 6% and 5% of the sales amount calculated
VAT
calculation method of "exemption offset and according to relevant tax regulations and the tax rebate
refund" is applied to sales of export products rate for export products is 13%
Urban
maintenance and Payable turnover tax 7%
construction tax
Business income
Taxable amount of income 25%20%15%8.25%
tax
Surcharge for
Payable turnover tax 3%
education
Surcharge for
Payable turnover tax 2%
local education
Residual value or rental income after deducting
Property tax 30% from the original value of property at one 1.2% or12%
time
The disclosure statement if there are taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
The Company 25%
Shenzhen Shenfang Property Management Co. Ltd. 25%
Shenzhen Shengjinlian Technology Co. Ltd. 25%
Shenzhen Beauty Century Garment Co. Ltd. 20%(Note 1)
Shenzhen Lisi Industrial Co. Ltd. 20%(Note 1)
Shenzhen Shenfang Sungang Property Management Co. Ltd. 20%(Note 1)
Shenzhen Huaqiang Hotel 20%(Note 1)
Shengtou（HK）Co. Ltd. 8.25%(Note 2)
50Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Shenzhen SAPO Photoelectric Co. Ltd. 15%(Note 3)
Note 1: See "Tax Preferences" in Notes 2 (2) for details.Note 2: According to the Tax Ordinance of Hong Kong Hong Kong companies applied the two-tier
system of profits tax and the first profit of HK$ 2 million will be calculated and paid at 8.25% and the profits
generated thereafter will be calculated at 16.5%.Note 3: See "Tax Preference" in Notes 2(1) for details.
2. Tax preference
(1) In 2022 SAPO Photoelectric a subsidiary of the Company was jointly recognized as a high-tech
enterprise by Shenzhen Science and Technology Innovation Committee Shenzhen Finance Bureau and
Shenzhen Tax Service State Taxation Administration respectively with a certification period of 3 years and
the certificate numbers of GR202244204504 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 subsidiaries of the Company Beauty Century Company Shenzhen Huaqiang Hotel Co. Ltd
Shenzhen Lisi Industrial Development Co. Ltd Shenzhen Shenfang Sungang Property Management Co. Ltd
and Shenzhen Shenfang Property Management Co. Ltd are eligible small and micro-profit enterprises.According to the Notice on the Implementation of the Inclusive Tax Exemption and Reduction Policy for Small
and Micro Enterprises (No. 13[2019]Cai Shui ) and the Announcement on Further Implementing the
Preferential Income Tax Policy for Small and Micro Enterprises ( According to the No. 13 2022Announcement
of the State Administration of Taxation of the Ministry of Finance) the Announcement of the State
Administration of Taxation of the Ministry of Finance on the Preferential Income Tax Policies for Small and
Micro Enterprises and Individual Industrial and Commercial Enterprises (The No. 6 2023Announcement of the
State Administration of Taxation of the Ministry of Finance) and the Announcement of the State Administration
of Taxation on the Implementation of the Preferential Income Tax Policies for Small and Micro-Profit
Enterprises (The No. 6 [2023]Announcement of State Administration of Taxation) the portion of taxable
income not exceeding RMB 1 million in the current year shall be reduced to 25% as taxable income and subject
to enterprise income tax at a rate of 20%.; For the portion of taxable income exceeding RMB 1 million but not
exceeding RMB 3 million in the current year it shall be reduced to 50% as taxable income and subject to
enterprise income tax at a rate of 20%.
（3）According to the relevant provisions of the Notice of the General Administration of Customs and the
State Administration of Taxation of the Ministry of Financeon the Import Tax Policies for Supporting the
Development of the New Display Device Industry (No. 19[2021]Cai Shui) SAPO Photoelectric a subsidiary
of the Company meets the relevant conditions and enjoys the policy of exemption from import tariffs for
related products from January 1 2021 to December 31 2030.
（4）The subsidiaries of the Company Shenzhen Beauty Century Company Shenzhen Huaqiang Hotel Co.
Ltd Shenzhen Lisi Industrial Development Co. Ltd Shenzhen Shenfang Sungang Property Management Co.Ltd and Shenzhen Shenfang Property Management Co. Ltd are eligible small and micro-profit enterprises. In
accordance with the relevant provisions of the Announcement of the State Administration of Taxation of the
Ministry of Finance on Further Implementing the "Six Taxes and Two Fees" Exemption and Reduction Policy
for Small and Micro Enterprises (Announcement No. 10 of 2022 of the State Administration of Taxation of the
Ministry of Finance) From January 1 2022 to December 31 2024 the small-scale value-added tax taxpayers
small and micro-profit enterprises and individual industrial and commercial enterprises can reduce resource tax
51Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
urban maintenance and construction tax real estate tax urban land use tax stamp duty (excluding stamp duty
on securities transactions) cultivated land occupation tax and education fee surcharge and local education
surcharge within the tax range of 50%.
（5）According to the Notice of the Ministry of Finance State Administration of Taxation Ministry of
Human Resources and Social Security and Poverty Alleviation Office of the State Council on Tax Policies to
Further Support and Promote the Entrepreneurship and Employment of Key Groups ( No. 22[2019]Cai Shui )
from the month of signing the labor contract and paying social insurance the value-added tax urban
maintenance and construction tax education fee surcharge local education surcharge and enterprise income tax
preferential will be deducted according to the actual number of recruits within 3 years in fixed amount and the
fixed amount standard is 7800 yuan per person per year. The tax calculation basis for urban maintenance and
construction tax education fee surcharge and local education surcharge is the VAT payable before enjoying this
preferential tax policy. SAPO Photoelectric a subsidiary of the Company applies the above preferential tax
policies.
3.Other
None
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash at hand 2231.43 3980.56
Bank deposit 345697680.49 874795302.32
Other monetary funds 270542231.07 116990685.31
Total 616242142.99 991789968.19
Including : The total amount of deposit abroad 0.00 0.00
Total amount of money limited to use such as mortgage pledge
270542231.07116990685.31
or freeze
Other note
Bank deposits include interest on current deposits of RMB 16175.93 Other monetary funds include the
interest of time deposit of RMB 226666.67 .Note 2: On June 30 2023 the Company's other monetary funds included the Bank Draft of
RMB4595637.31 RMB 1209498.75 and the principal and interest of time deposit certificates due for more
than three months from the date of purchase of RMB 265946593.76.
2. Transactional financial assets
In RMB
Balance at the end of this Balance at the end of last
Items
year year
Financial assets measured at fair value and whose changes
613554063.16319605448.44
are included in the current profits and losses
Including
money funds and structured deposits 613554063.16 319605448.44
Including
52Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Total 613554063.16 319605448.44
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Balance at the end of this year Balance at the end of last year
Bank acceptance 56718590.38 74619100.26
Total 56718590.38 74619100.26
In RMB
Balance at the end of this year Balance at the end of last year
Bad debt Bad debt
Book Balance Book Balance
provision provision
Category Amount Propor Am Prop Book value Amount Propor Am Prop Book value
tion(% ount ortio tion(% ount ortio
) n(% ) n(%
))
Of which：
Accrual of bad
debt provision 56718590.38 100.00% 0.00 0.00% 56718590.38 74619100.26 100.00% 0.00 0.00% 74619100.26
by portfolio
Including：
.Bank
56718590.38100.00%0.000.00%56718590.3874619100.26100.00%0.000.00%74619100.26
acceptance Bill
Total 56718590.38 100.00% 0.00 0.00% 56718590.38 74619100.26 100.00% 0.00 0.00% 74619100.26
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：None
Of which the significant amount of the reversed or collected part during the reporting period
□ Applicable √ Not applicable
（3） Notes receivable pledged by the company at the end of the period
None
（4）Accounts receivable financing endorsed or discounted by the Company at the end of the period and
not expired yet on the date of balance sheet
In RMB
Amount derecognized at the end of the Amount not yet derecognized at the end
Items
period of the period
Bank acceptance bill 0.00 40032610.22
Commercial acceptance 0.00 0.00
53Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Total 0.00 40032610.22
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract
or agreement
None
（6） The actual write-off accounts receivable
None
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Categor Book balance Bad debt provision Book balance Bad debt provision
Propor Book Propor Book
y Proporti Proporti
Amount tion(% Amount value Amount tion(% Amount value
on(%) on(%)
))
Accrual
of bad
debt
75859176.3041235454468274770706.028457164631354
provisio 8.32% 40.09% 10.93% 38.06%
n by 03 5.96 0.07 0 3.32 2.68
single
item
Accrual
of bad
debt 835796147 2633523 8094609 609507464. 1923753 5902699
91.68%3.15%89.07%3.16%
provisio .09 8.20 08.89 34 7.09 27.25
n by
portfolio
Includ
ing：
Portfolio 8074725 88.57 247982 782674 5911686 86.39 182956 572872
3.07%3.10%
129.45%45.92283.5303.26%05.12998.14
Portfolio 2832361 153699 267866 1833886 941931. 173969
3.11%5.43%2.68%5.14%
27.642.2825.361.089729.11
9116553100.005674758549076842781100.00476947636583
Total 6.22% 6.97%
23.12%94.16728.9670.34%00.41469.93
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name Bad debt
Book balance Proportion Reason
provision
Client 1 20940304.25 4900031.19 23.40% Expected high risk of recovery
Client 2 19608301.25 4588342.49 23.40% Expected high risk of recovery
Client 3 8944810.20 2344434.75 26.21% Expected high risk of recovery
Client 4 2797016.81 2797016.81 100.00% Expected to be uncollectible
Client 5 2701052.56 810315.77 30.00% Expected high risk of recovery
Client 6 1697437.81 1697437.81 100.00% Expected to be uncollectible
54Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Client 7 1609101.31 482730.39 30.00% Expected high risk of recovery
Client 8 1576585.72 1576585.72 100.00% Expected to be uncollectible
Client 9 1298965.36 1298965.36 100.00% Expected to be uncollectible
Subtotal 14685600.76 9916495.67 67.53%
Total 75859176.03 30412355.96
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Portfolio 1 807472529.45 24798245.92 3.07%
Portfolio 2 28323617.64 1536992.28 5.43%
Total 835796147.09 26335238.20
Note：
Credit loss provision by item: if there is evidence that the credit risk of a single receivable is relatively high
credit loss provision shall be accrued separately for the receivable.Credit loss provision is made according to the portfolio of credit risk characteristics: except for receivables
with credit impairment loss the Group uses impairment matrix to evaluate the expected credit loss of accounts
receivable formed by operating income on the basis of portfolio. According to the risk characteristics the Group
divides customers into Portfolio 1 and Portfolio 2 which respectively involve customers with the same risk
characteristics.Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 897992300.67
1-2 years 779798.03
2-3 years 0.00
Over 3 years 12883224.42
3-4 years 454035.81
Over 5 years 12429188.61
Total 911655323.12
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Reversed or
Category Opening balance Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt provision by 0.00 0.00
19237537.097107304.249603.1326335238.20
portfolio:
Accrual of bad debt provision by 0.00 0.00
28457163.321955192.640.0030412355.96
single item:
Total 47694700.41 9062496.88 9603.13 0.00 0.00 56747594.16
Of which the significant amount of the reversed or collected part during the reporting period :None
55Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Balance in year-end Proportion(%) Bad debt provision
Client 1 168740368.13 18.51% 5214077.39
Client 2 92294917.91 10.12% 2851912.96
Client 3 85996566.25 9.43% 2657293.90
Client 4 80398103.20 8.82% 2484301.39
Client 5 69843457.35 7.66% 2158162.83
Total 497273412.84 54.54%
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
None
6.Receivable financing
In RMB
Items Closing balance Opening balance
Bank acceptance bill 22863088.36 54413796.91
Total 22863088.36 54413796.91
Changes in current period and fair value of receivables financing
□ Applicable √ Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Other note
On June 30 2023 the endorsed or discounted unexpired bank acceptance bills that the Group derecognized
amounted to RMB 54533024.39. For the bank acceptance bills of large state-owned commercial banks with
high credit rating and listed national joint-stock commercial banks the Group believes that after the
endorsement or discount of such bank acceptance bills the related main risks and rewards have been transferred
to the counterparty and such endorsed or discounted unexpired bank acceptance bills should be derecognized.The Company believes that the acceptance bank credit rating of the bank acceptance bills held by it is high
with no significant credit risk therefore no credit loss provision has been made.
7.Prepayments
(1) List by aging analysis:
In RMB
Aging Balance at the end of this year Balance at the end of last year
56Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Amount Proportion % Amount Proportion %
Within 1 year 24263130.32 81.81% 16690766.68 90.75%
1-2 years 5395750.80 18.19% 1700677.99 9.25%
Total 29658881.12 18391444.67
Note：
On June 30 2023 the Group had no prepayments with an age of more than one year and a significant amount.
(2) Prepayments of the top five ending balances by prepayment object
The total amount of the top five year-end balances collected by prepayment objects is RMB 21692691.03
accounting for 73.14% of the total year-end balances of prepayments.
8. Other receivables
In RMB
Items Balance at the end of this year Balance at the end of last year
Other receivable 3393141.86 10585975.38
Total 3393141.86 10585975.38
（1） Interest receivable
1）Classification interest receivables.
None
2) Significant overdue interest
None
3）Bad-debt provision
□Applicable □Not applicable
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
(2)Dividend receivable
1) Dividend receivable
None
2) Significant dividend receivable aged over 1 year
None
3）Bad-debt provision
□ Applicable √ Not applicable
57Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Unit account 16811262.94 16330801.03
Deposit 2186800.03 2801300.29
Reserve fund and staff loans 889740.57 580028.97
Export rebate 709028.56 1023715.60
Other 463070.29 1688371.65
Freeze funds 347284.99 6559327.26
Total 21407187.38 28983544.80
2）) Accrual of credit loss provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the next life (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January 1
494588.28198890.0917704091.0518397569.42
2023
Balance as at January 1
2023in current
Provision in Current Year 38815.94 14108.85 11798.65 64723.44
Reversal in Current Year -448247.34 -448247.34
Balance as at 30 June
85156.88212998.9417715889.7018014045.52
2023
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balanceWithin 1 year(Including 1 year） 2038042.86
1-2 years 808278.98
2-3 years 362049.11
Over 3 years 18198816.43
3-4 years 4200.00
4-5 years 124799.10
Over 5 years 18069817.33
Total 21407187.38
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt
17188131.9017188131.90
provision by single item
58Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Accrual of bad debt
1209437.5264723.44-448247.34825913.62
provision by portfolio
Total 18397569.42 64723.44 -448247.34 18014045.52
Where the current bad debts back or recover significant amounts:None
4） Other account receivables actually cancel after write-off
None
5）Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Bad debt provision
Portion in total other
Name Nature Year-end balance Age of year-end
receivables(%)
balance
Client 1 Unit account 980461.06 Over 5 years 4.58% 980461.06
Client 2 Unit account 709028.48 Over 5 years 3.31% 709028.48
Client 3 Unit account 509611.25 Over 5 years 2.38% 272642.02
Client 4 Unit account 500000.00 1-2 years 2.34% 53500.00
Client 5 Unit account 294983.04 2-3 years 1.38% 90744.16
Total 2994083.83 13.99% 2106375.72
(6) Accounts receivable involved with government subsidies
None
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw
371378015.3635514179.23335863836.13291062812.8048809720.50242253092.30
materials
Processing
254572639.5243363067.47211209572.05258881779.5941882202.00216999577.59
products
Merchandise
196732911.5487994399.99108738511.55183723885.9692381073.6391342812.33
inventory
Commission
7582759.79292135.997290623.809016668.251164501.707852166.55
ed materials
Total 830266326.21 167163782.68 663102543.53 742685146.60 184237497.83 558447648.77
59Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
（2）Inventory falling price reserves
In RMB
Increased in current period Decreased in current period
Reversed
Items Opening balance or Closing balance
Accrual Write-off Other
collected
amount
Raw materials 48809720.50 -13295541.27 35514179.23
Processing
41882202.0012852877.8211372012.3543363067.47
products
Merchandise
92381073.6336827926.4541214600.0987994399.99
inventory
Commissioned
1164501.70-872365.71292135.99
materials
Total 184237497.83 35512897.29 52586612.44 167163782.68
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
None
（4）Description of amortization amount of contract performance cost in the current period
None
10.Contract assets
None
11. Assets divided as held-to-sold
None
12. Non-current assets due within 1 year
None
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
Receivable return cost 32391512.15 43446472.67
Advance payment of income tax 17271913.84 26089058.57
Total 49663425.99 69535531.24
14.Creditor's right investment
None
15.Other creditor's rights investment
None
60Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
16. Long-term accounts receivable
(1) List of long-term accounts receivable
None
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial
assets
None
（3） The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
None
17. Long-term equity investment
In RMB
Increase /decrease Clo
sing
Wit bala
Cha hdra nce
Add Cash
nges wal of
Opening ition Other bonus or Closing imp
Investees in of Ot
balance al comprehe profits othe imp he balance air
inve nsive announc
r airm r men
stme income ed to
equi ent t
nt issue
ty prov pro
ision visi
on
I. Joint ventures
Shenzhen
Guanhua
129506271.7-127314050.4
Printing &
62192221.351
Dyeing Co.Ltd.
129506271.7-127314050.4
Subtotal 0.00
62192221.351
2. Affiliated Company
Yehui
Internationa 1869767.43 -43637.75 54950.70 1881080.38
l Co. Ltd.Shenzhen
Changlianfa
Printing & 3105796.55 124599.07 3230395.62
dyeing
Company
Subtotal 4975563.98 80961.32 54950.70 5111476.00
134481835.7132425526.4
Total -2111260.03 54950.70
41
61Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Financial assets designated as fair value and whose changes are included
167678283.27167678283.27
in other comprehensive income
Total 167678283.27 167678283.27
(2) Investment in non-transactional equity instruments
In RMB
Amount
transferre Reason Reasons for
d from designated as transferring
Dividend
other being measured at from other
income
Cumulative comprehe fair value and comprehens
Items recognized Cumulative loss
gain/loss nsive change being ive income
this year
income to included in other to retained
retained comprehensive income this
income income year
this year
Planned to be held
Shenzhen Dailishi
550000.00 21627143.74 by the Group for a
Underwear Co. Ltd. long time.Planned to be held
Union Development Co.
208000.00 123361939.39 by the Group for a
Ltd. long time.Planned to be held
Jintian Industry（Group）
14831681.50 by the Group for a
Co. Ltd. long time.Planned to be held
Shenzhen Xinfang Knitting
148000.00 1851903.00 by the Group for a
Co. Ltd. long time.Planned to be held
Shenzhen South Textile Co.
14559440.88 by the Group for a
Ltd. long time.
19.Other non-current financial assets
None
20. Investment real estate
(1) Investment real estate adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Constructio
Items House Building Land use right Total
n in process
I. Original price
1. Balance at period-beginning 328128815.41 328128815.41
2.Increase in the current period 185000.00 185000.00
(1) Purchase 185000.00 185000.00
（2）Inventory\Fixed
assets\ Transferred from construction in progress
62Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(3)Increased of Enterprise Combination
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 328313815.41 328313815.41
II.Accumulated amortization
1.Opening balance 201812980.65 201812980.65
2.Increased amount of the period 4528957.27 4528957.27
(1) Withdrawal 4528957.27 4528957.27
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end 206341937.92 206341937.92
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV. Book value
1.Book value at period -end 121971877.49 121971877.49
2.Book value at period-beginning 126315834.76 126315834.76
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
In RMB
Items Book balance Reason
Unable to apply for warrants due to
Houses and Building 8032003.12
historical reasons
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 2133290574.66 2240221656.36
Total 2133290574.66 2240221656.36
(1) List of fixed assets
In RMB
63Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Houses & Machinery
Items Transportations
buildings equipment Other equipment Total
I. Original price
1.Opening balance 742709971.36 2655871126.91 15875027.26 50483511.70 3464939637.23
2.Increased amount of the
period 382881.49 4714818.95 919044.25 548203.94 6564948.63
(1) Purchase 382881.49 677649.29 641168.15 548203.94 2249902.87
(2) Transferred from cons
truction in progress 4037169.66 277876.10 4315045.76
(3)Increased of Enterprise
Combination
3.Decreased amount of
28887.08337730.89366617.97
the period
（1）Disposal 28887.08 337730.89 366617.97
4. Balance at period-end 743092852.85 2660557058.78 16794071.51 50693984.75 3471137967.89
II. Accumulated
depreciation
1.Opening balance 173190869.37 986203419.91 5871266.55 34223428.40 1199488984.23
2.Increased amount of the
11982665.4997057786.16993475.363447700.18113481627.19
period
(1) Withdrawal 11982665.49 97057786.16 993475.36 3447700.18 113481627.19
3.Decrease in the
27731.59324221.70351953.29
reporting period
（1）Disposal 27731.59 324221.70 351953.29
4.Closing balance 185173534.86 1083233474.48 6864741.91 37346906.88 1312618658.13
III. Impairment provision
1.Opening balance 25120608.21 108388.43 25228996.64
2.Increase in the reporting
period
（1）Withdrawal
3.Decrease in
261.54261.54
the reporting period
（1）Disposal 261.54 261.54
4. Closing balance 25120608.21 108126.89 25228735.10
IV. Book value
1.Book value of the
557919317.991552202976.099929329.6013238950.982133290574.66
period-end
2.Book value of the
569519101.991644547098.7910003760.7116151694.872240221656.36
period-begin
64Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(2) Fixed assets temporarily idled
None
(3) Fixed assets rented by finance leases
None
(4) Fixed assets without certificate of title completed
None
（5）Liquidation of fixed assets
None
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 36543522.56 38061619.60
Total 36543522.56 38061619.60
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision Book value
devaluation for
devaluation
Installation of
machines and 36543522.56 0.00 36543522.56 38061619.60 0.00 38061619.60
equipment
Total 36543522.56 0.00 36543522.56 38061619.60 0.00 38061619.60
（2）Changes of significant construction in progress
None
（3）Impairment provision of construction projects
None
（4）Engineering material
None
65Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right to use assets
In RMB
Items House and Building Total
1. Balance at year beginning
4. Year-end balance 28914047.83 28914047.83
2. Increase at this period 5893024.28 5893024.28
Newly inversed 5893024.28 5893024.28
3.Decreased amount of the period 0.00 0.00
4. Balance at period-end 34807072.11 34807072.11
II. Accumulated depreciation
1.Opening balance 13548653.95 13548653.95
2.Increased amount of the period 4577501.46 4577501.46
(1) Withdrawal 4577501.46 4577501.46
3.Decrease in the reporting period
（1）Disposal 0.00 0.00
4.Closing balance 18126155.41 18126155.41
III. Impairment provision
1.Opening balance 0.00 0.00
2.Increase in the reporting period 0.00 0.00
（1）Withdrawal 0.00 0.00
3.Decrease in
the reporting period
（1）Disposal 0.00 0.00
4. Closing balance 0.00 0.00
IV. Book value
1.Book value of the period-end 16680916.70 16680916.70
2.Book value of the period-begin 15365393.88 15365393.88
26. Intangible assets
(1) Information
In RMB
Items Land use right Patent right Non-proprietary Software Total
66Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
technology
I. Original price
1. Balance at period-beginning 48258239.00 11825200.00 0.00 22336546.33 82419985.33
2.Increase in the current period
(1) Purchase 0.00 0.00 0.00 0.00 0.00
（2）Internal R & D 0.00 0.00 0.00 0.00 0.00
（3）Increased of Enterprise 0.00 0.00 0.00 0.00 0.00
Combination
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 48258239.00 11825200.00 0.00 22336546.33 82419985.33
II.Accumulated amortization
1. Balance at period-beginning 15274148.35 11825200.00 11128065.03 38227413.38
2. Increase in the current period 445782.66 0.00 0.00 2026293.06 2472075.72
(1) Withdrawal 445782.66 0.00 0.00 2026293.06 2472075.72
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 15719931.01 11825200.00 13154358.09 40699489.10
III. Impairment provision
1. Balance at period-beginning 0.00 0.00 0.00 0.00 0.00
2. Increase in the current period 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00
3.Decreased amount of the period
（1）Disposal 0.00 0.00 0.00 0.00 0.00
4. Balance at period-end 0.00 0.00 0.00 0.00 0.00
4. Book value
1.Book value at period -end 32538307.99 0.00 0.00 9182188.24 41720496.23
2.Book value at period-beginning 32984090.65 0.00 0.00 11208481.30 44192571.95
At the end of this period the intangible assets formed through the company's internal research and development
accounted for 0.00% of the balance of intangible assets
(2) Details of fixed assets failed to accomplish certification of land use right
None
27. R&D expenses
None
28. Goodwill
(1) Original book value of goodwill
In RMB
Increase Decrease
Opening Closing balance
Items dispos
balance The merger of enterprises
ition
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
67Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
0.000.00
Shenzhen Beauty Century Garment Co.
2167341.212167341.21
Ltd.Total 11782099.76 0.00 0.00 11782099.76
（2）Impairment of goodwill
In RMB
Increase Decrease
Name of the investees or the events Closing balance
Opening balance Provisio dispos
formed goodwill
n ition
SAPO Photoelectric 9614758.55 0.00 0.00 9614758.55
0.000.00
Shenzhen Beauty Century Garment Co.
2167341.212167341.21
Ltd.Total 11782099.76 0.00 0.00 11782099.76
Information about an asset group or asset group portfolio
None
Explain the goodwill impairment test process key parameters (such as forecast period growth rate at expected
future cash flow stable period growth rate profit margin discount rate forecast period etc.) and the
confirmation method of goodwill impairment loss
None
Impact of the goodwill impairment test
None
29. Long term amortize expenses
In RMB
Amortized
Balance in Increase in this
Items expenses
Balance in year-
Other loss
year-begin period end
Decoration and
facilities renovation 4470957.79 1010991.86 3459965.93
fee
Total 4470957.79 1010991.86 3459965.93
30. Deferred income tax assets/Deferred income tax liabilities
(1) Uncompensated deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment
189041740.4828356261.07206115717.2030917357.58
provision
Unrealized profit from 2190520.68 328578.10 2235077.97 335261.70
68Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
internal transactions
Deductible loss 107459166.10 16115579.51 90052078.73 13397964.96
Credit loss provision 73083485.00 12342262.52 65076915.43 11372802.27
Deferred income 103811720.34 15571758.05 116768810.33 17515321.55
Changes in fair value
of investment in other 14831681.50 3707920.38 14831681.50 3707920.38
equity instruments
Employee
compensation 7202192.55 1594722.64 9397730.55 2143607.14
payable
Total 497620506.65 78017082.27 504478011.71 79390235.58
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Deductible Deductible
Items Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in fair value of investment in
160494427.0140123606.76160494427.0140123606.76
other equity 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 8689653.64 2172413.41 7584635.96 1896158.99
Total 231267774.01 57816943.51 230162756.33 57540689.09
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
End balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Items deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
-9298589.6968718492.58-9566421.2969823814.29
assets
Deferred income tax
-9298589.6948518353.82-9566421.2947974267.80
liabilities
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 6189658.00 5742636.02
Deductible loss 463254123.12 464226095.10
Total 469443781.12 469968731.12
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
202474265351.7479132962.34
202516680938.2316680938.23
2026128597715.91128597715.91
202716173145.0712155889.69
69Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
202822451907.9522463907.95
2029129732249.98129766788.98
203075352814.2475427892.00
Total 463254123.12 464226095.10
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items for for
devaluatio devaluatio
n n
Prepayment for
engineering and 14492289.46 0.00 14492289.46 16792930.20 0.00 16792930.20
equipment
Investment funds to
25760086.270.0025760086.2725760086.270.0025760086.27
be liquidated
Total 40252375.73 0.00 40252375.73 42553016.47 0.00 42553016.47
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-begin
Credit loans 8000000.00 7000000.00
Total 8000000.00 7000000.00
Note：None
(2) Situation of Overdue Outstanding Short-Term Borrowing
The total amount of overdue short-term loans at the end of this period is in RMB 0.00 of which the important
overdue short-term loans are as follows: None
33. Transactional financial liabilities
None
34. Derivative financial liability
None
35.Notes payable
In RMB
Type Balance in year-end Balance in year-begin
Bank acceptance Bill 15284993.54 0.00
Total 15284993.54 0.00
70Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
The total note payable not due at the end of the period is 0.00 yuan.
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Payment for goods 408449533.79 304916368.65
Service charge 16255936.12 11386158.86
Localities 7901712.00 4609134.50
Subcontracting payment 2170315.29 3970214.14
Others 2711668.87 2167997.55
Total 437489166.07 327049873.70
(2) Significant advance from customers aging over one year
On June 30 2023 the Company had no significant accounts payable with an aging of more than one year.
37.Advance account
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Rent and other 1164665.15 1393344.99
Total 1164665.15 1393344.99
(2) Significant advance from customers aging over one year
On June 30 2023the Company had no significant accounts payable with an aging of more than one year.
38.Contract liabilities
In RMB
Items Balance in year-end Balance in year-begin
Goods 4975276.30 4274109.40
Total 4975276.30 4274109.40
Amount and reasons for the significant change in the book value during the reporting period
None
39.Payable Employee wage
(1) List of Payroll payable
In RMB
Balance in year- Increase in this Payable in this Balance in year-end
Items
begin period period
I. Short-term compensation 60940432.90 129088042.66 132984150.88 57044324.68
II.Post-employment benefits -
7103766.957103766.95
defined contribution plans
71Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Dismissal benefits 226012.00 334223.86 336765.26 223470.60
Total 61166444.90 136526033.47 140424683.09 57267795.28
（2）Short-term remuneration
In RMB
Balance in year- Increase in this Decrease in this Balance in year-end
Items
begin period period
1.Wages bonuses allowances
57472981.87115273963.12119127683.3753619261.62
and subsidies
2.Employee welfare 29185.44 4206521.68 4235707.12 0.00
3. Social insurance premiums 0.00 3013562.59 3013562.59 0.00
Including：Medical insurance 0.00 2107846.75 2107846.75 0.00
Work injury insurance 0.00 160521.32 160521.32 0.00
Maternity insurance 0.00 219350.79 219350.79 0.00
Other 0.00 525843.73 525843.73 0.00
4. Public reserves for housing 202391.00 3992227.00 4194618.00 0.00
5.Union funds and staff
3235874.592601768.272412579.803425063.06
education fee
Other 60940432.90 129088042.66 132984150.88 57044324.68
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Decrease in this period Balance in year-end
1. Basic old-age
insurance premiums 0.00 5633933.03 5633933.03 0.00
2.Unemployment
insurance 0.00 140977.99 140977.99 0.00
3. Annuity payment 0.00 1328855.93 1328855.93 0.00
Total 0.00 7103766.95 7103766.95 0.00
Other note
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 Company shall contribute RMB5633933.03 to the pension insurance plan and RMB140977.99 to the
unemployment insurance plan. As at 30 June 2023 the Company paid the full amount of pension insurance and
unemployment insurance plans payable during the reporting period.
40.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 597591.27 1740677.77
Enterprise Income tax 1944668.44 4655525.64
Individual Income tax 177457.85 1847004.45
Other 3313523.49 654104.65
72Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Total 6033241.05 8897312.51
41.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Other payable 187021282.45 197345455.37
Total 187021282.45 197345455.37
（1）Interest payable
None
（2）Dividends payable
Other explanations including significant dividends payable that have not been paid for more than 1 year it shall
disclose the reasons for non-payment: None
(3) Other accounts payable
1） Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 80153167.17 83337092.31
Unit account 47534662.26 53102831.34
Deposit 32910156.52 45628573.39
Other 26423296.50 15276958.33
Total 187021282.45 197345455.37
2） Important other payables with an aging of more than 1 year
In RMB
Items Balance at the end of this year Reasons for no payment or carry-over
Beijing CEEDI Engineering & The final payment settlement of the
16724271.45
Technology Co. Ltd. project has not been completed
Total 16724271.45
42. Liabilities classified as holding for sale
None
43. Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Long-term due within one year 100024512.50 97182080.19
Lease liabilities due within one year 7465519.14 7001358.03
Total 107490031.64 104183438.22
73Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
44.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
Did not terminate the confirmation bill
40032610.2248387401.67
endorsement discount
Return payable 34117277.42 44558340.11
Total 74149887.64 92945741.78
45. Long-term borrowing
(1) List of Long-term borrowing
In RMB
Items Balance in year-end Balance in year-begin
Guaranteed loan 657173111.84 704603665.19
Less: Long-term loans due within one
100024512.5097182080.19
year
Total 557148599.34 607421585.00
Description of the long-term loan classification
SAPO Photoelectric a subsidiary of the Company mortgaged its real estate rights such as the factory
building and the Company and Hangzhou Jinjiang Group Co. Ltd. provided 60% and 40% joint guarantee for
the loan respectively.
46.Bond payable
None
47. Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
lease liabilities 17823282.59 15630030.74
Less：Lease liabilities due within 1 year 7465519.14 7001358.03
Total 10357763.45 8628672.71
48. Long-term payable
None
49. Long term payroll payable
None
50.Estimated liabilities
None
74Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
51.Deferred income
In RMB
Decreased this
Items Beginning of term Increased this term End of term Reason
term
Government Government
117814796.108628497.0421689214.87104754078.27
Subsidy Subsidy
Total 117814796.10 8628497.04 21689214.87 104754078.27
Details of government subsidies：
In RMB
Amount Other Amount of
New Asset-
transferred income cost
Beginning subsidy in Other related or
Items to non- recorded in deducted in End of term
of term current decrease income-
operational the current the current
period related
income period period
Production -
80986810. 8628497.0 10368087. 76747220.3 Asset-
line 2500000.0
subsidy 31 4 03 2
related
0
Equipment 30827985. 2821127.8 28006857.9 Asset-
subsidy 79 4 5 related
Material 6000000.0 6000000.0 Income-
0.00
subsidy 0 0 related
52. Other non-current liabilities
None
53.Stock capital
In RMB
Changed（+，-）Year-beginning Balance in year-
balance Issuance of Bonus Capitalizatio Other Subtotal end
new share shares n of public
reserve
Total of 0.00 0.00 0.00 0.00 0.00
506521849.00506521849.00
capital shares
54. Other equity instruments
None
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the Decrease in the Year-end balance
current period current period
Share premium 1826482608.54 0.00 0.00 1826482608.54
75Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Other capital reserves 135117216.09 0.00 0.00 135117216.09
Total 1961599824.63 0.00 0.00 1961599824.63
56.Treasury stock
None
57. Other comprehensive income
In RMB
Amount of current period
Less：
Less：
Amount
Prior
transferred
period
into profit
included in
Year- and loss in Amount other ： After-tax After-tax Items beginning the current Less
Year-end
incurred composite attribute to attribute to
balance period that Income tax balance before income the parent minority
recognied expenses
income tax transfer to company shareholder
into other
retained
comprehen
income in
sive
the current
income in
period
prior period
1. Other
comprehen
sive
income that
1085843410858434
cannot be 0.00 0.00 0.00 0.00 0.00 0.00
reclassified 4.77 4.77
in the loss
and gain in
the future
Changes in
fair value
of
10858434
investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s in other 4.77
equity
instruments
II. Other
comprehen
sive
income to 1012264.5 1245855.3
352684.200.000.000.00233590.80119093.40
be 4 4
reclassified
into profit
or loss
Changes in
fair value
-
of 297733.50 0.00 0.00 0.00 178640.10 119093.40 178640.10
receivables 178640.10
financing
Translation
difference
of foreign 1190904.6 1245855.3
54950.700.000.000.0054950.700.00
currency 4 4
financial
statements
Total of
other 10959660 10983020
352684.200.000.000.00233590.80119093.40
comprehen 9.31 0.11
sive
76Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
income
58. Special reserves
None
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus 0.00 0.00
100909661.32100909661.32
reserve
Total 100909661.32 0.00 0.00 100909661.32
Note to surplus reserve including the note to its increase/decrease and the cause(s) of its movement in the
reporting period: None
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the
170636610.95125317336.31
year beginning
Retained earnings after adjustments at the
170636610.95125317336.31
year end
Add: Net profit attributable to owners of the
36307162.9773309182.94
Company for the period
Less：Statutory surplus reserve 0.00 2663815.85
Common stock dividend payable 30391310.94 25326092.45
Retained profits at the period end 176552462.98 170636610.95
As regards the details of adjusted the beginning undistributed profits
None
61. Business income Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1470203939.11 1286170472.71 1425009759.63 1240002222.92
Other business 19891730.44 0.00 20127549.46 2985871.14
Total 1490095669.55 1286170472.71 1445137309.09 1242988094.06
Income-related information:
In RMB
Property leasing and
Product type Polarizer Textile Total
management
Product 1412410148.66 56093359.66 21592161.23 1490095669.55
Including
Polarizer 1412410148.66 1412410148.66
Property leasing
56093359.6656093359.66
and management
77Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Textile 21592161.23 21592161.23
Area 1412410148.66 56093359.66 21592161.23 1490095669.55
Including
Domestic 1361868120.05 56093359.66 9702693.10 1427664172.81
Overseas 50542028.61 0.00 11889468.13 62431496.74
Total 1412410148.66 56093359.66 21592161.23 1490095669.55
Description of performance obligations
The Group's goods sales are mainly the production and sales of polarizer and textile-related goods. 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 Company 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 price apportioned to the residual performance obligation:
On June 30 2023 The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was 4975276.30 Yuan at the period-end among which RMB
4975276.30 Yuan was expected to be recognized in 2023.
The amount of revenue corresponding to performance obligations of contracts signed but not performed or
not fully performed yet was RMB1867398.72 at the period-end among which RMB 1867398.72 was
expected to be recognized in 2023 RMB 0 was expected to be recognized in 2024. RMB 0 was expected to be
recognized in 2025.
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Property tax 2918264.56 2911689.84
Stamp tax 794946.41 829848.83
Urban construction tax 280887.35 193493.65
Education surcharge 204444.12 133269.00
Land use tax 188021.08 97737.54
vehicle and vessel usage tax 4200.00 1440.00
Other 6566.26 3883.32
Total 4397329.78 4171362.18
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Employee compensation 10230501.01 9765028.00
Sales service charge 3893275.02 5791774.85
Other 1154529.29 922396.04
Business entertainment 481984.21 734977.55
Travel expenses 390639.14 444372.70
Exhibition fee 288544.63 697198.25
Total 16439473.30 18355747.39
78Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 44414164.48 40666351.70
Depreciation of fixed assets 5553209.06 7296978.02
Water and electricity 2328829.65 2713713.93
Intermediary organ 4330104.04 2701374.70
Intangible assets amortization 2472075.72 2514696.45
Travel expenses 224064.04 131833.96
Office expenses 449240.06 362061.20
Business entertainment 746448.25 729775.83
Other 4781274.52 4331403.07
Tax 65299409.82 61448188.86
65.R & D costs
In RMB
Items Amount of current period Amount of previous period
Material 25540854.61 23286446.67
Wage 8292440.77 8566206.98
Depreciation
1686985.391908863.88
Fuel & Power
446284.09473821.67
Travel expenses
19400.9445732.13
Other
18222.82589921.33
Total
36004188.6234870992.66
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 13965081.41 15882534.27
Interest income -5318571.16 -773863.34
Exchange loss -7582000.80 -27366911.14
Fees and other 3114986.18 3424366.77
Total 4179495.63 -8833873.44
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 19369307.55 10780654.48
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment returns accounted
-2111260.031658532.04
for by equity method
Investment income of transactional financial
8948614.728967680.80
assets during the holding period
79Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Dividend income earned during investment
906000.00708000.00
holdings in other equity instruments
Other -291040.32
Total 7743354.69 11043172.52
69.Net exposure hedging income
None
70. Gains on the changes in the fair value
None
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 383523.90 6951880.47
Loss of bad note receivable 0.00 291096.44
Loss of bad accounts receivable -9052893.75 -10228230.44
Total -8669369.85 -2985253.53
72. Losses from asset impairment
In RMB
Items Amount of current period Amount of previous period
II. Loss of inventory price and Impairment of
-35512897.29-42073672.20
contract performance costs
Total -35512897.29 -42073672.20
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
Gains& losses on the disposal of fixed
321.08-11114.72
assets
74. Non-Operation income
In RMB
Items Amount of current period Amount of previous Recorded in the amount of the non-
period recurring gains and losses
Supplier compensation 71816.74 1615000.00 71816.74
Payable without payment 0.00 78644.95 0.00
Other 329571.05 74470.10 329571.05
Total 401387.79 1768115.05 401387.79
Government subsidies recorded into current profits and losses： None
80Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
75.Non-current expenses
In RMB
Amount of current period Amount of previous The amount of non-operating gains
Items
period & lossed
Compensation expenses 3009886.86 0.00 3009886.86
Non-current asset Disposition
8807.8710885.388807.87
loss
Other 18886.32 202204.91 18886.32
Total 3037581.05 213090.29 3037581.05
76.Income tax expenses
(1)Income tax expenses
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 4063609.65 16930.91
Deferred income tax expense 1649407.73 323966.90
Total 5713017.38 340897.81
(2)Reconciliation of account profit and income tax expenses
In RMB
Items Amount of current period
Total profits 57899822.61
Income tax expenses calculated at the applicable tax rate 14474955.65
Influence of different tax rates applied by some subsidiaries -2763593.41
Income not subject to tax 299238.91
Non-deductible costs expenses and losses 3425.00
Tax impact by the unrecognized deductible losses and deductible temporary
-17279.47
differences in previous years
Tax impact of unrecognized deductible losses and deductible temporary
-883101.00
differences
Tax impact of research and development fee plus deduction -5400628.30
Income tax expense 5713017.38
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Current account and other 59933695.82 120535575.04
Government Subsidy 8752204.09 13883551.50
Letter of Credit Deposit 8087465.25 152041095.07Interest income（Not including
1221464.54559472.02financing product）
Total 77994829.70 287019693.63
Note to other cash received in connection with operating activities: None
81Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
Current account and other 67303982.70 37548518.13
Letter of Credit Deposit 10788695.79 11655819.11
Total 78092678.49 49204337.24
Note to other cash paid in connection with operating activities: None
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits financial products
195000000.00635000000.00
principal and income
Total 195000000.00 635000000.00
Note to other cash received related to other investment activities：None
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Purchase of financial management
631537000.00650000001.00
structured deposit and investment
Total 631537000.00 650000001.00
Note to other Cash paid related to other investment activities： None
（5）Other cash received in relation to financing activities
None
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Lease payment 4141770.57 0.00
Total 4141770.57 0.00
Note to other Cash paid related with financing activities： None
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Amount of current Amount of
Items
period previous period
I. Adjusting net profit to cash flow from operating activities
82Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Net profit 52186805.23 70104710.88
Add: Impairment loss provision of assets 44182267.14 45058925.73
Depreciation of fixed assets oil and gas assets and consumable biological assets 113129673.90 70459401.36
Depreciation of Use right assets 4577501.46 4303599.85
Amortization of intangible assets 2472075.72 460596.04
Amortization of Long-term deferred expenses 1010991.86 674121.16
Loss on disposal of fixed assets intangible assets and other long-term deferred assets -321.08 11114.72
Fixed assets scrap loss 0.00 0.00
Loss on fair value changes 0.00 0.00
Financial cost -9785585.78 -8833873.44
Loss on investment -7387354.69 -11043172.52
Decrease of deferred income tax assets 1105321.71 43628.11
Increased of deferred income tax liabilities 544086.02 97374.65
Decrease of inventories -140167792.05 -113943401.07
Decease of operating receivables -172947643.53 -74703894.32
Increased of operating Payable 125482947.69 96749103.44
Other 0.00 0.00
Net cash flows arising from operating activities 14402973.60 79438234.59
II. Significant investment and financing activities that without cash flows:
Conversion of debt into capital 0.00 0.00
Convertible corporate bonds maturing within one year 0.00 0.00
Financing of fixed assets leased 0.00 0.00
III .Movement of cash and cash equivalents：
Ending balance of cash 345683735.99 348660980.95
Less: Beginning balance of cash equivalents 874474834.46 302408433.72
Add：End balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase of cash and cash equivalent -528791098.47 46252547.23
(2) Net Cash paid of obtaining the subsidiary
None
(3) Net Cash receive of disposal of the subsidiary
None
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 345683735.99 874474834.46
Including：Cash at hand
2231.433980.56
Demand bank deposit 345681504.56 874470853.90
III. Balance of cash and cash equivalents
345683735.99874474834.46
at the period end
80. Note of statement of changes in the owner's equity
83Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Specify the description of the item "others" and the adjusted amount of the balance at the end of last year: None
81. The assets with the ownership or use right restricted
In RMB
Book value at the end of the reporting
Items Cause of restriction
period
CD + structured deposit + time deposit + bank
Monetary fund 270542231.07
draft margin
Bill receivable 40032610.22 Endorsed but not yet due bank acceptance bills
Fixed assets 462070010.10 Mortgage
Intangible assets 32542134.43 Mortgage
Total 805186985.82
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds 9451451.89
Including：USD 1235678.45 7.2258 8928765.34
HKD 66465.00 0.9220 61280.73
Yen 9209697.00 0.0501 461405.82
Account payable 37405548.36
Including：USD 5141157.27 7.2258 37148974.20
HKD 278280.00 0.9220 256574.16
Other receivable 509611.25
Including：USD 70526.62 7.2258 509611.25
Account payable 331640814.19
Including：USD 8752201.63 7.2258 63241658.54
Yen 5355607174.00 0.0501 268315919.42
HKD 90277.91 0.9220 83236.23
Other payable 5264875.32
Including：USD 676686.00 7.2258 4889597.70
Yen 3381984.00 0.0501 169437.40
Euro 22500.00 7.8771 177234.75
HKD 31025.46 0.9220 28605.47
(2) Note to overseas operating entities including important overseas operating entities witch should be
disclosed about its principal business place function currency for bookkeeping and basis for the choice.In case of any change in function currency the cause should be disclosed.□ Applicable √ Not applicable
83. Hedging
Arbitrage According to arbitrage category to disclose arbitrage item relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information: None
84. Government subsidies
84Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
（1）Government subsidies confirmed in current period
In RMB
Amount included in current
Items Amount Project
profit and loss
Production line subsidy 76747220.32 Deferred income 10368087.03
Equipment subsidy 28006857.95 Deferred income 2821127.84
Material subsidy 0.00 Deferred income 6000000.00
Other 180092.68 Deferred income 180092.68
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
None
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
None
(2) Combined cost and goodwill
None
(3) The identifiable assets and liabilities of acquiree at purchase date
None
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
None
(6) Other note:
None
85Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
None
(2) Combination cost
None
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
None
3. Counter purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities
of the listed companies whether constituted a business and its basis the determination of the combination costs
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.None
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to the change in the consolidation scope (e.g. new subsidiaries liquidation subsidiaries etc.) caused by
other reasons and relevant information:
None
6.Other
None
86Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main Share-holding ratio
Register
Subsidiary operatio Business nature Indirectl Acquired way
ed place Directly
n y
Shenzhen Lishi Industry Shenzhe Shenzhe 100.00
Property Management Establish
Development Co. Ltd n n %
Establish
Shenzhe Shenzhe 100.00
Shenzhen Huaqiang Hotel Property Management
n n %
Shenfang Property Management Co. Shenzhe Shenzhe 100.00
Property Management Establish
Ltd. n n %
Establish
Production of fully
Shenzhen Beauty Century Garment Shenzhe Shenzhe 100.00
electronic jacquard
Co. Ltd. n n %
knitting whole shape
Shenzhen Shenfang Sungang Shenzhe Shenzhe 100.00
Property Management Establish
Property Management Co. Ltd. n n %
Establish
Shenzhe Shenzhe Polarizer production
SAPO Photoelectric 60.00%
n n and sales
Shengtou (Hongkong) Co.Ltd. Hongko Hongko Production and sales 100.00% Establish
ng ng of polarizer
Establish
Shenzhen Shengjinlian Technology Shenzhe Shenzhe Production and sales
100.00%
Co. Ltd. n n of polarizer
Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio: None
Basis for holding half or less voting rights but still controlling the investee and holding more than half voting
rights but not controlling the investee: None
For the important structured subjects included in the scope of consolidation the control basis is: None
Basis for determining whether the company is an agent or a principal: None
Other note：Note
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss
Dividend declared Closing balance of
Holding proportion of attributable to
Name to non-controlling non-controlling
non-controlling interest non-controlling
interest interest
interest
SAPO Photoelectric 40.00% 15879642.26 0.00 1197776505.87
Other note：None
87Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Curren Non- Curren Non-
Subsid Non- Total Non- Total
Curren Total t current Curren Total t current
iaries current liabiliti current liabiliti
t assets assets liabiliti Liabili t assets assets liabiliti Liabili
assets es assets es
es ties es ties
SAPO 2126 2307 4433 77328 67131 1444 1936 2419 4355 67407 73281 1406
Photoe 22071 46378 68450 5887. 8083. 60397 54126 43260 97386 1107. 9068. 89017
lectric 9.76 0.40 0.16 90 13 1.03 3.47 2.01 5.48 48 02 5.50
In RMB
Current term Last term
Total Cash flow Total Cash flow
Subsidiarie
Operating comprehen from Operating comprehen from
s Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
SAPO
1417425039699105.39996839.13933905.1390584969177964.69177964.80837844.
Photoelectr
87.5065153201.04444434
ic
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the
subsidiary
(1) Note to owner’s equity share changed in subsidiary
None
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity
of the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding
Registra
Main Places Nature of Ratio (%) The accounting treatment of
Name of Subsidiary tion
of Operation Business indire investment in associates
Place direct
ct
Shenzhen Guanhua Printing & Shenzhen Shenzhe Property 50.16% 0.00% Equity method
88Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Dyeing Co. Ltd n leasing
Explanation that the shareholding ratio in the joint venture or associated enterprise is different from the voting
right ratio: None
Basis for holding less than 20% of voting rights but with significant influence or holding 20% or more of
voting rights but without significant influence: None
（2）The Summarized Financial Information of Joint Ventures
In RMB
Year-end balance/ Amount of Year-beginning balance/ Amount of
current period previous period
Current assets 47559682.42 47899181.48
Including： Cash and cash equivalent
Non-current assets 210047689.01 217362821.36
Total assets 257607371.43 265262002.84
Current liabilities 14418070.32 16619409.76
Non-current liabilities 31942467.19 33025262.69
Total liabilities 46360537.51 49644672.45
Minority equity
Attributable to shareholders of the parent company 211246833.92 215617330.39
Share of net assets calculated by stake 105961411.89 108153652.92
Adjustment items
-- Goodwill 21595462.44 21595462.44
-- Internal transactions did not achieve profit
--Other -242823.92 -242843.60
Book value of equity investment in joint ventures 127314050.41 129506271.76
The fair value of the equity investment of a joint
venture with a public quotation
Operating income 4366254.94 10946554.54
Financial expenses -89049.09 -135801.19
Income tax expenses -902781.76 -717712.93
Net profit -4370457.23 2617456.35
Net profit from terminated operations
Other comprehensive income
Total comprehensive income -4370457.23 2617456.35
Dividends received from joint ventures for this year 0.00 0.00
(3) Main financial information of significant associated enterprise
None
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Associated enterprise
89Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Total book value of investment 4952342.73 4975563.98
Total of the following items calculated
by shareholding ratio
-Net profit 26010.62 269859.91
-Other comprehensive income 54950.70 75756.02
-Total comprehensive income 80961.32 345615.93
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other
None
X. Risks related to financial instruments
The Company's main financial instruments include monetary funds transactional financial assets notes
receivable accounts receivable accounts receivable financing other receivables other equity instruments
investment short-term loans accounts payable other payables other current liabilities long-term loans and
lease liabilities etc. At the end of this year the financial instruments held by the Group are as follows. See Note
(VII) for details. The risks associated with these financial instruments and the risk management policies adopted
by the Group to reduce these risks are as follows. The management of the Group manages and monitors these
risk exposures to ensure that the above risks are controlled within a limited range.
1. Risk management objectives and policies
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 goal the basic strategy of the Group's risk
90Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
management is to identify and analyze all kinds of risks faced by the Group establish an appropriate risk
tolerance bottom line and conduct risk management and timely and reliably supervise all kinds of risks to control
the risks within a limited range.
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 30 June 2023 the Company's assets and liabilities were all RMB balances except for the monetary
items in foreign currencies mentioned in Notes (VII) (82). 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.Balance at the end of this year
Items 目
Assets Liabilities
USD 46587350.79 68131256.24
Yen 461405.82 268485356.82
Euro 0.00 177234.75
HKD 317854.89 111841.70
The Group pays close attention to the impact of exchange rate changes on the Group's foreign exchange risk.Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all net investment hedging and cash flow hedging
of overseas operations are highly effective.On the basis of the above assumptions with other variables unchanged the pre-tax impact of possible
reasonable exchange rate changes on current profits and losses and shareholders' equity is as follows:
In RMB
This year
Items Changes in exchange rate Impact on profits Impact on shareholders' equity
All foreign
Appreciation of RMB by 5% -14476953.90 -14476953.90
currencies
All foreign
Depreciation of RMB by 5% 14476953.90 14476953.90
currencies
1.1.2. Interest rate risk - risk of cash flow change
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 possible reasonable interest rate changes on current profits
and losses and shareholders' equity is as follows:
In RMB
This year
Items Interest rate change Impact on profits Impact on shareholders' equity
Floating-rate
Increase by 1% -6571731.12 -6571731.12
loan
Floating-rate
Decrease by 1% 6571731.12 6571731.12
loan
1.2. Credit risk
On June 302023 the largest credit risk exposure that may cause the Company's financial losses mainly came
from the loss of the Company's financial assets caused by the failure of the other party to the contract including
monetary funds transactional financial assets notes receivable accounts receivable receivables financing and
91Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
other receivables. On the balance sheet date the book value of the Company's financial assets has represented its
maximum credit risk exposure.In order to reduce the credit risk the Company 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
Company believes that the credit risk assumed by the Company has been greatly reduced.The Company's monetary funds are deposited in banks with high credit ratings so the monetary funds only have
low credit risk.On June 30 2023 the balance of accounts receivable of the Company to the top five customers was RMB
497273412.84 accounting for 54.54% of the balance of accounts receivable of the Company. In addition the
Company 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 Company maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Company's business needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.On June 30 2023 the Group's unused comprehensive bank credit line was RMB 70861.00.The financial liabilities held by the Company are analyzed according to the maturity of the undiscounted
remaining contractual obligations as follows:
In RMB
Item Within 1 year 1-5 years Over 5 years Total
Short-term loan 0.00 0.00 8151016.67 8151016.67
Accounts payable 0.00 0.00 437489166.07 437489166.07
Other payables 0.00 0.00 187021282.45 187021282.45
Other current liabilities 0.00 0.00 74149887.64 74149887.64
Long-term loans 100024512.50 594693456.05 86935756.48 781653725.03
Lease liabilities 7465519.14 10357763.45 17823282.59
2. Transfer of financial assets
2.1 Financial assets that have been transferred but have not been derecognized as a whole
On June 30 2023 the book value of bank acceptance bills endorsed by the Company to suppliers for
settlement of accounts payable was RMB 40032610.22. The Company believes that almost all risks and rewards
related to notes receivable at the time of endorsement have not been transferred which does not meet the
conditions for derecognition of financial assets. Therefore the related notes receivable have not been
derecognized as a whole on the endorsement date.
2.2 Derecognition has been made as a whole but the transferor continues to be involved in the transferred
financial assets
The Company endorses the bank acceptance bills held by large state-owned commercial banks with high
credit rating and listed national joint-stock commercial banks to a third party. As almost all the risks and rewards
related to the bank acceptance bills have been transferred to the banks the Company derecognizes the endorsed
and unexpired bank acceptance bills. According to the relevant provisions of the Negotiable Instruments Law of
the People's Republic of China if the bank acceptance bill fails to be paid and accepted at maturity the endorsee
has the right to require the Company to pay off the outstanding balance so the Company continues to be involved
in the endorsed bank acceptance bill. On June 30 2023 the unexpired bank acceptance bill endorsed by the
Company was RMB 54533024.39.
92Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
In RMB
Year-end fair value
Fair value Fair value Fair value
Items
measurement of measurement of measurement of Total
Level 1 Level 2 Level 3
I. Consistent fair value measurement -- -- -- --
(1) Transactional Financial Asset 0.00 613554063.16 0.00 613554063.16
(II) Receivable financing 0.00 0.00 22863088.36 22863088.36
（III) Other equity instrument 0.00 0.00
167678283.27167678283.27
investment
Total liabilities measured at fair value
0.00613554063.16190541371.63804095434.79
on a non-ongoing basis
II Inconsistent fair value
--------
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
None
3. Items measured based on the continuous or uncontinuous level 2nd fair value valuation technique as
used nature of important parameters and quantitative information
Fair value at the end of this
Items year Valuation technique Input value
Discounted cash
Transactional financial assets 613554063.16 Expected yield
flow technique
4. Items measured based on the continuous or uncontinuous level 3rd fair value valuation technique as
used nature of important parameters and quantitative information
Fair value at the end of this
Items year Valuation technique Input value
Discounted cash
Receivable financing 22863088.36 Discount rate
flow technique
Comparison of P/B ratio of similar listed
listed companies companies
Investment in other equity
167678283.27
instruments
Comparable income
Market price
method
93Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
None
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
None
7. Changes in the valuation technique in the current period and the reason for change
None
8. Fair value of financial assets and 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 short-term loans accounts payable other payables long-term loans and
lease liabilities.The management of the Company 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.Other
None
XII. Related parties and related party transactions
1. Information about the parent company of the Enterprise.
Shareholding
Percentage of
ratio of the
voting rights of the
Name of parent parent
Place of registration Business nature Registered capital parent company to
company company to the
the Company %
Company %
18/F Investment Equity
Shenzhen
Building Shennan investment
Investment 32359000000.00 46.21% 46.21%
Road Futian real estate
Holdings Co. Ltd
District Shenzhen development etc
Description of the parent company of the Enterprise
The parent company of the Company is a wholly state-owned company approved and authorized by the
Shenzhen Municipal Government and exercises the investor function for the state-owned enterprises within the
authorized scope according to law. The registered capital of the parent company is increased to 32.359 billion
yuan after being approved by resolution of the board of directors but the industrial and commercial change is
yet not completed.Therefore the Company’s ultimate controller is Shenzhen Investment Holdings Co. Ltd.
94Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
2.Subsidiaries of the Company
Details refer to the Note X-9 Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note X-9 Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
None
4.Other Related parties information
Other related party Relationship to the Company
The Company's shareholding company and the chairman of the
Shenzhen Xinfang Knitting Co. Ltd.company are the employees of the Company
The Company's shareholding company and the chairman of the
Shenzhen Dailishi Underwear Co. Ltd.company are the employees of the Company
Hengmei Photoelectric Co. Ltd. The controlling party of SAPO Shareholder
Shenzhen Shentou Property Development Co. Ltd. A wholly-owned subsidiary of the parent company
A wholly-owned subsidiary of the parent company A wholly-
Shenzhen Investment Building Hotel Co. Ltd.owned - subsidiary of the parent company
A wholly-owned subsidiary of the parent company A wholly-
owned subsidiary of the parent company
A wholly-owned subsidiary of the parent company A wholly-
Shenzhen SEG Longyan Energy Technology Co. Ltd.owned subsidiary of the parent company
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Occurred Trading limit Over the trading limit Occurred in
Related party Content
current term approved or not previous term
Shenzhen SEG Longyan
Energy Technology Co. Buy electricity 540788.97 1600000.00 No 0.00
Ltd.Hengmei Photoelectric
Buy optical film 3680715.63 15000000.00 Mo 0.00
Co. Ltd.Hengmei Photoelectric Buy RTP OEM
834265.74 14000000.00 No 0.00
Co. Ltd. services
Sale of goods
In RMB
Content of related
Related party Amount incurred this year Amount incurred last year
party transaction
Hengmei Photoelectric Co. Ltd. Polarizer 4744631.12 0.00
Shenzhen Shentou Property
Textile 54991.15 0.00
Development Co. Ltd.Shenzhen Investment Building Hotel Textile 40614.16 0.00
95Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Co. Ltd.Shenzhen Investment Building Property
Textile 26247.79 0.00
Management Co. Ltd.Shenzhen Investment Holdings Co. Ltd Textile 15371.68 0.00
Related transactions on sale goods and receiving services
None
(2) Related trusteeship/contract
None
(3) Information of related lease
None
(4) Related-party guarantee
None
(5) Inter-bank lending of capital of related parties：
In RMB
Related party Amount Start date Expiring date Note
Borrowing fund：
Shenzhen Guanhua
The annual lending
Printing & Dyeing Co. 3806454.17 July 302019 July 302023
interest rate is 0.30%
Ltd.Loaned
(6) Related party asset transfer and debt restructuring
None
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Rewards for the key management
2653076.003523165.00
personnel
(8) Other related transactions
None
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Balance of Bad debt
Balance of Book Balance of Book
Book Provision
Account Shenzhen Investment
17370.000.000.000.00
receivable Holdings Co. Ltd
Other Account Shenzhen Dailishi
550000.0027500.001100000.0058850.00
receivable Underwear Co. Ltd.
96Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Other payable Yehui International Co.Ltd. 1124656.60 1124656.60
Other payable Shenzhen Changlianfa 2023699.95 2023699.95
Printing & dyeing Co. Ltd.Other payable Shenzhen Guanhua Printing 3806454.17 3806454.17
& dyeing Co. Ltd.Other payable Shenzhen Xinfang Knitting 244789.85 244789.85
Co. Ltd.Other payable Shenzhen Investment 0.00 643987.04
Holdings Co. Ltd
7. Related party commitment
None
8.Other
None
XIII. Share payment
1. Overall situation of share payment
□Applicable √Not applicable
2. Equity-settled share-based payment
□Applicable √Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
None
5.Other
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
97Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(1) Capital commitment
In RMB
Items Amount at the end of this year Amount at the end of last year
Contracted but not recognized in the financial
statements
Commitment to purchase and build long-term
9826665.403761094.00
assets
2. Contingency
(1) Significant contingency at balance sheet date
None
(2) The Company have no significant contingency to disclose also should be stated
None
3.Other
None
XV. Events after balance sheet date
1. Significant events had not adjusted
None
2. Profit distribution
None
3. Sales return
None
4. Notes of other significant events
None
XVI. Other significant events
1. Correction of the accounting errors in the previous period
None
2. Liabilities restructuring
None
3. Replacement of assets
None
4. Pension plan
None
98Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
5. Discontinuing operation
None
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
The Company determines its operating divisions based on its internal organizational structure management
requirements and internal reporting system. Based on the operating divisions the Company confirms three
reporting divisions namely textiles polarizer trade and property leasing.Divisional reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each division when reporting to the management. These measurement basis are consistent
with the accounting and measurement basis for financial statement preparation.
（2）Financial information of the report division
In RMB
Property lease Offset between
Items Polarizer Textile Total
and other divisions
Operating income
Including: revenue
from foreign 1412410148.66 56093359.66 21592161.23 0.00 1490095669.55
transaction
Revenue from inter-
segment 0.00 1580122.82 46476.10 -1626598.92 0.00
transactions
Total operating
1412410148.6657673482.4821638637.33-1626598.921490095669.55
income of segment
Operating expenses 1349302885.40 40298941.06 24372370.21 -1483826.81 1412490369.86
Operating profit 38699455.89 25336492.52 -3357160.43 -142772.11 60536015.87
Net profit 36115184.98 20124415.57 -3354455.12 -698340.20 52186805.23
Total assets of
4401822948.271291062431.4538894981.64-58934723.455672845637.91
segment
Total liabilities of
1494650341.37140990476.3734122817.74-50108501.481619655134.00
segment
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments
cannot be disclosed explain the reason
None
（4）Other note
None
7. Other significant transactions and matters that may affect investors' decision making
None
8.Other
None
99Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Categor Book balance Bad debt provision Book balance Bad debt provision
Book Book
y Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt 187835 779276. 180042 163561 713159. 156430
100.00%4.15%100.00%4.36%
provisio 40.82 24 64.58 83.36 25 24.11
n by
portfolio
187835779276.180042163561713159.156430
Total 100.00% 4.15% 100.00% 4.36%
40.822464.5883.362524.11
Accrual of bad debt provision by portfolio:：
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Accrual portfolio 18783540.82 779276.24 4.15%
Total 18783540.82 779276.24
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 16298464.82
1- 2 years 946760.00
2-3 years 1538316.00
Total 18783540.82
(2) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Opening
Category Reversed or Write- Closing balanc balance Accrual collected Other
off
amount
Accrual portfolio 713159.25 66116.99 0.00 0.00 0.00 779276.24
Accrual single 0.00 0.00 0.00 0.00 0.00 0.00
Total 713159.25 66116.99 0.00 0.00 0.00 779276.24
100Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(3) The actual write-off accounts receivable
None
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Name Closing balance Proportion % Balance of Bad debt provision
Client 1 12780240.15 68.04% 199497.75
Client 2 2485076.00 13.23% 124253.80
Client 3 1593487.36 8.48% 83658.09
Client 4 1472107.76 7.84% 71370.00
Client 5 84420.00 0.45% 4221.00
Total 18415331.27 98.04%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
None
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 14116168.90 14132756.62
Total 14116168.90 14132756.62
（1）Interest receivable
1) Category of interest receivable
None
2) Significant overdue interest
None
3）Bad-debt provision
□ Applicable √ Not applicable
101Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(2)Dividend receivable
1) Category of Dividend receivable
None
2) Significant dividends receivable with age exceeding 1 year
None
3) Provision for bad debts
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Internal current account 15830841.48 15349339.97
Related party transactions within the
13115619.1712980241.09
consolidation scope
Other 330734.21 1056701.52
Spare funds and employee borrowing 65000.00 0.00
Deposit and security deposit 10000.00 10000.00
Total 29352194.86 29396282.58
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss over Expected credit losses for
Bad Debt Reserves Total
losses over the life (no credit the entire duration (credit
next 12 months impairment) impairment occurred)
Balance as at January 1 2023 59301.12 3018.92 15201205.92 15263525.96
Balance as at January 1
2023in current
Provision in Current Year 27500.00 0.00 0.00 27500.00
Reversal in Current Year -55000.00 0.00 0.00 -55000.00
Balance as at 30 June 2023 31801.12 3018.92 15201205.92 15236025.96
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balanceWithin 1 year(Including 1 year） 3364804.74
1-2 years 10707995.02
Over 3 years 15279395.10
Over 5 years 15279395.10
Total 29352194.86
102Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt
15111246.320.000.000.000.0015111246.32
provision by single item
Accrual of bad debt
152279.6427500.00-55000.000.000.00124779.64
provision by portfolio:
Total 15263525.96 27500.00 -55000.00 0.00 0.00 15236025.96
Where the significant amount of the provision for bad debt recovered or reversed: None
4) Accounts receivable actually written off in the reporting period
None
5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of total
Year-end balance
Year-end balance year-end balance of
of credit loss
Unit name Payment nature of other Aging other receivables (%)
provision
receivables
Internal
Over 1-5
Client 1 borrowing and 13115619.17 44.68% 0.00
years
interest
Client 2 Unit account 11389044.60 Over 5 years 38.80% 11389044.60
Client 3 Unit account 1800000.00 Over 5 years 6.13% 1800000.00
Client 4 Unit account 1018295.37 Over 5 years 3.47% 1018295.37
Client 5 Unit account 592420.00 Over 5 years 2.02% 592420.00
Total 27915379.14 95.10% 14799759.97
6) Accounts receivable involved with government subsidies
None
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
None
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 1974532127. 1957949498. 1974532127. 1957949498.
16582629.3016582629.30
subsidiaries 39 09 39 09
103Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Investments in
associates and 132425526.41 0.00 132425526.41 134481835.74 0.00 134481835.74
joint ventures
2106957653.2090375024.2109013963.2092431333.
16582629.3016582629.30
Total 80 50 13 83
（1）Investment to the subsidiary
In RMB
Increase /decrease in reporting period
Closing balance
Add
Name Opening balance Closing balance of impairment
invest Other provision
ment
SAPO Photoelectric 1910247781.94 0.00 0.00 0.00 0.00 1910247781.94 14415288.09
Shenzhen Lisi
Industrial 8073388.25 0.00 0.00 0.00 0.00 8073388.25 0.00
Development Co. Ltd.Shenzhen Beauty
Centruty Garment Co. 16598166.34 0.00 0.00 0.00 0.00 16598166.34 2167341.21
Ltd.Shenzhen Huaqiang
15489351.080.000.000.000.0015489351.080.00
Hotal
Shenfang Property
1713186.550.000.000.000.001713186.550.00
Management Co. Ltd.Shenfang Sungang
Property Management 5827623.93 0.00 0.00 0.00 0.00 5827623.93 0.00
Co. Ltd.Total 1957949498.09 0.00 0.00 0.00 0.00 1957949498.09 16582629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closi
ng
Adjustm Declarat Withd balan
Opening Decre Gain/los ent of Other ion of rawn Add Closing ce of Name
balance ased s of other equity cash impairinvest Other balance impai
invest Investm compreh chang dividend ment
ment rment
ment ent ensive es s or provis provis
income profit ion ion
I. Joint ventures
Shenzhen
Guanhua -
1295062127314
Printing & 0.00 0.00 219222 0.00 0.00 0.00 0.00 0.00 0.00
71.76050.41
Dyeing 1.35
Co. Ltd.-
1295062127314
Subtotal 0.00 0.00 219222 0.00 0.00 0.00 0.00 0.00 0.00
71.76050.41
1.35
II. Associated enterprises
Shenzhen
Guanhua
3105796.124599.323039
Printing & 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
55075.62
Dyeing
Co. Ltd.Yehui -
1869767.54950.7188108
Internation 0.00 0.00 43637.7 0.00 0.00 0.00 0.00 0.00
4300.38
al Co. 5
104Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
Ltd.
4975563.80961.354950.7511147
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
98206.00
-
134481854950.7132425
Total 0.00 0.00 211126 0.00 0.00 0.00 0.00 0.00
35.740526.41
0.03
（3）Other note
None
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main
39239619.434156707.0119836395.333883135.15
Business
Other Business income 0.00 0.00 1320274.42 1320274.42
Total 39239619.43 4156707.01 21156669.75 5203409.57
Income-related information:
In RMB
Type Property management Total
Types of goods 39239619.43 39239619.43
Including
Property lease management and others 39239619.43 39239619.43
Area 39239619.43 39239619.43
Including：
Domestic 39239619.43 39239619.43
Tota 39239619.43 39239619.43
Information related to performance obligations: None
Information related to the transaction price apportioned to the residual performance obligation:
At the end of the reporting period the income amount corresponding to the performance obligations that have
been signed but not fulfilled or completed is 0.00 yuan. Among them RMB 0.00 is expected to be recognized as
revenue in 0 year RMB 0.00 is expected to be recognized as revenue in 0 year and RMB 0.00 is expected to be
recognized as revenue in 0 year.
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment returns accounted for
-2111260.031658532.04
by equity method
Investment income of trading financial assets
8906611.678967680.80
during the holding period
Dividend income earned during investment
906000.00708000.00
holdings in other equity instruments
Total 7701351.64 11334212.84
105Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
6.Other
None
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss 321.08
Govemment subsidy recognized in current gain and loss(excluding those
closely related to the Company’s business and granted under the state’s 19369307.55
policies)
Mainly for quality
Other non-business income and expenditures other than the above -2636193.26
compensation
Less :Influenced amount of income tax 2504189.66
Influenced amount of minor shareholders’ equity (after tax) 5609409.35
Total 8619836.36 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition
in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public-Extraordinary Gains and Losses or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.□ Applicable √Not applicable
2. Return on net asset and earnings per share
Earnings per share
Weighted average returns
Profit of report period Basic earnings per Diluted earnings per
equity(%)share(RMB/share） share(RMB/share)
Net profit attributable to the
Common stock shareholders of 1.27% 0.0717 0.0717
Company.Net profit attributable to the
Common stock shareholders of
0.97%0.05470.0547
Company after deducting of non-
recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
（2）Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable□√ Not applicable
106Shenzhen Textile (Holdings) Co. Ltd. The Semi-Annual Financial Report 2023
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign account
ing standards. If the data that has been audited by an overseas audit institution is adjusted for differences
the name of the overseas institution should be indicated
None
4. Other
None
107
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