Shenzhen Textile (Holdings) Co. Ltd. Summary of the Semi-Annual Report 2022

Stock code: 000045 200045 Stock Abbreviation: Shen Textile A Shen Textile B Announcement No.: 2022-30

Shenzhen Textile (Holdings) Co. Ltd.Summary of the Semi-Annual Report 2022

I. Important notes

The summary is abstract from full-text of summary of the semi-annual report for more details information

investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and

other website appointed by CSRC.Non-standard auditor’s opinion

□ Applicable √Not applicable

Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share

capital for the reporting period which has been reviewed and approved at the board meeting

□ Applicable √Not applicable

The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been

reviewed and approved at the board meeting

□ Applicable √Not applicable

II. Basic information about the company

1. Company profile

Stock abbreviation Shen Textile A Shen Textile B Stock code 000045200045

Stock exchange for listing Shenzhen Stock Exchange

Contact person and contact manner Board secretary Securities affairs Representative

Name Jiang Peng Li Zhenyu

6/F Shenfang Building No.3 Huaqiang 6/F Shenfang Building No.3 Huaqiang

Office Address

North Road Futian District Shenzhen North Road Futian District Shenzhen

Tel 0755-83776043 0755-83776043

E-mail jiangp@chinasthc.com lizy@chinasthc.com

2. Major accounting data and financial indicators

May the Company make retroactive adjustment or restatement of the accounting data of the previous years

□ Yes √ No

Reporting period Same period of last year YoY+/-（%）

Operating income（RMB） 1445137309.09 1101536407.38 31.19%

Net profit attributable to the

shareholders of the listed company 42433525.10 76603074.39 -44.61%（RMB）

1Shenzhen Textile (Holdings) Co. Ltd. Summary of the Semi-Annual Report 2022

Net profit after deducting of

non-recurring gain/loss attributable to

the shareholders of listed company 34970975.47 61814528.89 -43.43%（RMB）

Cash flow generated by business

79438234.59-52643536.25250.90%

operation net（RMB）

Basic earning per share(RMB/Share) 0.0838 0.1509 -44.47%

Diluted gains per

0.08380.1509-44.47%

share(RMB/Share)(RMB/Share)

Weighted average ROE(%) 1.50% 2.74% -1.24%

As at the end of the

As at the end of last year YoY+/-（%）

reporting period

Total assets（RMB） 5690609337.03 5496647107.83 3.53%

Net assets attributable to shareholder of

2833979078.562816795889.890.61%

listed company（RMB）

3.Shareholders and shareholding

In Shares

Total number of preferred

Total number of common

shareholders that had restored the voting

shareholders at the end of the 26670 0

right at the end of the reporting period (if

reporting period

any) (note 8)

Particulars about shares held above 5% by shareholders or top ten shareholders

Number of share

Proportion

Shareholders Number of Amount of pledged/frozen

Nature of shareholder of shares shares held at restricted

held（%） period -end shares held State of Amount

share

Shenzhen Investment Holdings Co.State-owned legal person 46.21% 234069436

Ltd.Shenzhen Shenchao Technology State-owned

3.18%16129032

Investment Co. Ltd. Legal person

Sun Huiming Domestic Nature person 1.19% 6008653

Deng Yan Domestic Nature person 1.17% 5928200

Su Weipeng Domestic Nature person 0.68% 3423010 Pledge 2800000

Zhang Muxiu Domestic Nature person 0.45% 2298800

Qi Jianhong Domestic Nature person 0.44% 2218800

Hou Xiulan Domestic Nature person 0.38% 1946191

Wang Zhongjing Domestic Nature person 0.37% 1872900

Li Zengmao Domestic Nature person 0.35% 1760097

Among the top 10 common shareholders Shenzhen Investment

Holdings Co. Ltd. and Shenzhen Shenchao Technology

Investment Co. Ltd. do not constitute a concerted party

relationship. In addition the company does not know whether

Explanation on shareholders participating in the margin trading

there is an associated relationship among the top 10 ordinary

business

shareholders and between the top 10 ordinary shareholders and

the top 10 shareholders or whether they are persons taking

concerted action defined in Administrative Measures for the

Acquisition of Listed Companies.

2Shenzhen Textile (Holdings) Co. Ltd. Summary of the Semi-Annual Report 2022

4.Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□ Applicable √ Not Applicable

There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period

□ Applicable √ Not applicable

There was no any change of the actual controller of the Company in the reporting period.

5.Number of preference shareholders and shareholdings of top 10 of them

□ Applicable √ Not applicable

No preference shareholders in the reporting period

6 The status of bonds remaining on the date of approval of the semiannual report

□ Applicable √ Not applicable

III. significant events

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

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

month the production capacity increased and the Company's operating performance improved month by month.The main products of Line 7 have been verified by customers the order volume has gradually increased and the unit

manufacturing cost of products has gradually decreased. With the smooth progress of Line 7 ramp-up it will have a

positive follow-up impact on the Company's operating performance.

2. Regarding the investment in the construction of the RTS rear cutting production line

In 2021 upon careful demonstration the Company increased investment in the construction of a cutting

production line at the back-end of RTS with a total investment of no more than RMB 30 million; As of June 30

2022 the signed contract amount was RMB 25402400 and the actual payment was RMB 19789800; As of June

30 2022 the Company has overcome the adverse effects caused by the pandemic. At present the main equipment

of the project has been manufactured and mobilized and the follow-up installation and commissioning are being

carried out in an orderly manner according to the construction and production schedule of the customer's production

line.

3. The disposal of assets of the joint venture company Xieli Automobilemobile Co. Ltd.

Shenzhen Xieli Automobilemobile Enterprise Co. Ltd. (hereinafter referred to as "Shenzhen Xieli") is a

Sino-foreign joint venture invested and established by the company and Hong Kong Xieli Maintenance Company in

1981 with a registered capital of 3.12 million yuan and the company holds 50% of the equity. The company's

operating period ended in 2008 and its business license was revoked in 2014. The company's main asset is real

estate. The industrial and commercial license of Shenzhen Xieli was cancelled in March 2020 but there are still

three properties under its name the disposal of which is required to be resolved after further consultation between

the shareholders of both parties.On July 26 2021 the Company filed a lawsuit with Yantian District People's Court in Shenzhen City

Guangdong Province to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co. Ltd. approved

by Shenzhen Administration for Market Regulation on March 9 2020 on which the court gave a judgment on

November 21 2021 to revoke the cancellation of Shenzhen Xieli Automobilemobile Enterprise Co. Ltd. approved

by Shenzhen Administration for Market Regulation. On December 3 and December 62021 Hong Kong Xili and

Shenzhen Market Supervision Administration submitted appeals to the Shenzhen Intermediate People's Court

3Shenzhen Textile (Holdings) Co. Ltd. Summary of the Semi-Annual Report 2022

respectively. On April 18 2022 the Company received the notice of the second trial from Shenzhen Intermediate

People's Court. The case was heard in the second instance on April 27 2022. The Shenzhen Intermediate People's

Court made the judgment on June 28 2022: 1. Revoke the administrative judgment Y0308 XC No.1883 of the

People's Court of Yantian District Shenzhen City Guangdong Province (2021); II. Remand to Yantian District

People's Court Shenzhen City Guangdong Province for retrial. On July 22 2022 the Company received the

summons from Yantian District People's Court Shenzhen City Guangdong Province and the trial of this case is

scheduled on August 25 2022.

4.Reduction of the rent of the Company's own property in response to COVID-19 pandemic

In order to jointly respond to the pandemic and actively fulfill social responsibilities according to Several

Measures of Shenzhen on Further Helping Market Subjects to Solve Problems in Response to COVID-19 (SF [2022]

No.28) issued by Shenzhen Municipal Government and in accordance with the relevant work requirements of

Shenzhen SASAC the Company has formulated the implementation plan of rent reduction and exemption for the

self-own property of the Company and its wholly-owned enterprises to tide over the difficulties with market

subjects and help win the war of epidemic prevention and control.The impact of the property rent reduction of the Company and its wholly-owned enterprises on the Company's

operating income in 2022 is expected to be no more than RMB 30.35 million accounting for about 1.3% of the

audited operating income in 2021; The impact on the Company's net profit attributable to its parent company in

2022 is estimated to be about RMB 30.24 million accounting for about 49.4% of the audited net profit attributable

to its parent company in 2021. The impact of this rent reduction on the Company's operating income and net profit

attributable to its parent company in 2022 is the unaudited estimated data which is only used by investors to

understand the impact of this rent reduction on the Company and it's subject to the actual executed amount. For

details please refer to the Company's announcement No. 2022-19 on CNINF (http://www.cninfo.com.cn).

5.The progress of the lawsuit of the Company and its holding subsidiaries v. Jinhang Fund v. SAPO

Photoelectric for dissolution dispute

In July 2022 the Company and its holding subsidiary SAPO Photoelectric respectively received the legal

documents such as Notice of Participation in Litigation Notice of Respondence to Action Summon and Civil

Complaint with a case number of (2022) Y0310 MC No. 3507 served by Pingshan District People's Court

Shenzhen City Guangdong Province and were informed that the court had accepted Hangzhou Jinhang Equity

Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Jinhang Fund") v. SAPO

Photoelectric for dissolution dispute and the Company was informed to participate in the lawsuit as a party to the

case and SAPO Photoelectric was informed to respond as the defendant to the case. For details please refer to the

Company's Announcement No. 2022-20 on CNINF (http://www.cninfo.com.cn).The case was heard in Pingshan District People's Court Shenzhen City Guangdong Province at 9: 30 on July 15

2022 and no judgment has yet been made.

6.Progress in subsidiaries participating in the establishment of industrial funds

On November 16 2017 the company's controlling subsidiary SAPO Photoelectric signed the Changxing

Junying Equity Investment Partnership (Limited Partnership) Agreement with the fund manager Huizhi

Investment Management Co. Ltd general partner Jinxin Investment Co. Ltd and other limited partners and

co-sponsored the establishment of an industrial fund focusing on the optical film industry chain related projects

related to the company's main business with a fund size of 50 million yuan. SAPO Photoelectric as one of the

limited partners of the industrial fund subscribed for a capital contribution of 28.5 million yuan. For details JuchaoWebsite:（http://www.cninfo.com.cn. (Announcement No.2017--55).On February 10 2018 Changxing Junying Equity Investment Partnership completed the industrial and

commercial registration and completed the private equity investment fund registration on February 8 2018. Fordetails Juchao Website:（http://www.cninfo.com.cn. (Announcement No.2018--05).In order to optimize the strategic layout and supplement the working capital SAPO Photoelectric and

Hangzhou Yuanzhen Investment Management Co. Ltd. (hereinafter referred to as Yuanzhen Investment) signed the

4Shenzhen Textile (Holdings) Co. Ltd. Summary of the Semi-Annual Report 2022

Transfer Agreement on Property Share of Changxing Junying Equity Investment Partnership (Limited Partnership)

on July 11 2022 and transferred the share of Changxing Fund held by SAPO Photoelectric to Yuanzhen Investment

at a transaction consideration of RMB 28.5 million. After this property share transfer the Company will withdraw

from Changxing Fund and no longer hold the partnership share of Changxing Fund. For details please refer to the

Company's Announcement No.2022-21 on Juchao Information Network (http://www.cninfo.com.cn).The Board of Directors of Shenzhen Textile (Holdings) Co. Ltd.August 25 2022

5