Summary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.Stock code: 000045200045 Stock Abbreviation: Shen Textile A Shen Textile B Announcement No. :2025-10

Summary of 2024 Annual Report of Shenzhen Textile

(Holdings) Co. Ltd.I. Important notes

The summary is abstract from full-text of 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.In addition to the following directors other directors personally attended the Board meeting at which the Annual

Report was considered.Names of directors not Positions of directors not present Reasons for not attending the

Name of principal

present in person in person meeting in person

Wang Chuan Director Business Related Wei Junfeng

Meng Fei Director Business Related Liu Yu

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 plan of Converting provident fund to share capital .□ Applicable √Not applicable

The profit distribution plan reviewed and approved by the Company at the Board is: based on 506521849 shares

distribute cash dividends of 0.71RMB (including tax) for every 10 shares to all shareholders and distribute 0

bonus shares (including tax) without converting the provident fund into share capital.The profit distribution plan for preferred stocks for the reporting period passed by the board of directors

□ Applicable √Not applicable

II. Basic information about the company

1. Company profile

Stock abbreviation Shen Textile A，Shen Textile B Stock code 000045，200045Stock 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

Fax 0755-83776139 0755-83776139

Tel 0755-83776043 0755-83776043

E-mail jiangp@chinasthc.com lizy@chinasthc.comSummary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.

2. Brief introduction to the main business or products in the reporting period

(I) Main business of the Company

The Company's main business is a high-tech industry focusing on the R&D production and sales of polarizers for OLED and LCD

display the operation and management of its own properties and textile and clothing business.During the reporting period there was no significant change in the Company's primary business. First the Company actively

adjusted its product structure implemented a product differentiation strategy and increased the sales proportion of high-value-added

products. It has achieved an industry-leading position in OLED TV polarizer sales volume and the sales volume of ultra-large-size

products has surged significantly; second the Company made every effort to overcome quality problems improve customer

satisfaction reduce product return losses and management costs and at the same time played a sales-driven role to promote sales by

production and the production and sales volume repeatedly hit a record high; third the Company strengthened the on-site technical

management level and enhanced the process stability. The improvement of broken film of each production line was remarkable and

the average frequency of broken film decreased significantly year-on-year which has reached a higher level in the industry. fourth

the Company continued to strengthen innovation leadership driving the development and mass production of cutting-edge products.It focused on breakthroughs in key technologies and successfully achieved the development and mass production of

high-performance OLED TV polarizers with high transmittance and low reflection in 55-inch 65-inch and 77-inch sizes.Additionally it completed the development of highly alkali-resistant polarizers for OLED mobile phones and the development of

display polarizers that meet the U.S. Energy Star 9.0 energy efficiency standards; fifth the Company actively phased out subsidiaries

with "non-core businesses and inefficient assets" steadily implemented the performance-based selection mechanism promoted the

shifting of resources from non-core businesses to core businesses and achieved rational use of resources; Sixth the Company

strengthened supervision and management focused on work safety prepared safety management systems strengthened safety

training and education carried out safety risk identification and hidden danger investigation and management consolidated weak

links and prevented accidents; Seventh continuously improved the quality of property management service improve tenant

satisfaction strived to maintain the Company's property rental rate at a high level and ensured the stability of the Company's

property leasing management business income.

(2) Main products of the Company and their uses

Currently the Company has 7 mass-production polarizer production lines and its products cover TN STN TFT OLED 3D dye

films optical films for touch screens and other fields. These products are mainly applied to products such as TVs laptops navigators

monitors vehicles industrial controls instruments and meters smartphones wearable devices 3D glasses and sunglasses. By

continuously strengthening the expansion of sales channels and the construction of its own brand the Company has become a

qualified supplier for mainstream panel enterprises such as CSOT BOE LGD Xianyang Caihong HKC Tianma Microelectronics

Sharp and so on.The main product types and applications of the Company's polarizer production lines are as follows:

Production lines Address Product width Planned capacity Main product type

Line 1 Pingshan 500mm 600000 square meters TN/STN/dye films

Line 2 Pingshan 500mm 1.2 million square meters TN/STN/CSTN

Line 3 Pingshan 650mm 1 million square meters TFT

Line 4 Pingshan 1490mm 6 million square meters TFT/OLED

Line 5 Pingshan 650mm 2 million square meters TFT/OLED

Line 6 Pingshan 1490mm 10 million square meters TFT/OLED

Line 7 Pingshan 2500mm 32 million square meters TFT/OLED

(3) Industry information of the Company during the reporting period

The polarizer is also called polarized light sheet which can control the polarization direction of a specific beam. When the natural

light passes through the polarizer the light with the vibration direction perpendicular to the polarizer transmission axis will be

absorbed and only the polarized light with the vibration direction parallel to the polarizer transmission axis will be transmitted. The

downstream applications of polarizers are mainly in the panel industry. According to different panel types polarizer are mainly

classified into TN type STN type TFT type and OLED type. At present the global polarizer market is mainly based on polarizers for

TFT-LCD panels. One LCD panel requires two polarizers while one OLED panel requires one polarizer.The high-quality development of the polarizer industry has a profound impact on the entire display industry. As one of the three core

raw materials of the display panel the demand for polarizer is directly affected by the fluctuation of the display panel market. In

recent years with the accelerated transfer of the global display panel industry to China China's polarizer industry has ushered in a

stage of rapid development. The production capacity and process technology level of domestic polarizer manufacturers have

continuously jumped. China's polarizer industry has significantly improved its position and influence in the global market. Chinese

mainland has become the world's largest polarizer production base.The Company is one of the main polarizer R&D production and sales enterprises in China. It is the pioneer of China's polarizerSummary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.industry. Now it has developed into a leading enterprise in China's polarizer industry and has become an important supplier of

mainstream panel enterprises in the world. In 2024 the global economic and geopolitical situation will remain complex and volatile.Affected by the severe and complex economic and political situation in the world the global display panel and terminal market

demand will slowly recover and the polarizer industry will continue to expand its production capacity. However it still faces risks

such as intensified industry competition rising raw materials costs and raw materials supply security.

(4)Industry competition pattern

Polarizer industry is a highly concentrated industry. Currently there are about 10 major polarizer manufacturers worldwide mainly in

mainland China Japan South Korea and Taiwan Province of China.With the transfer of production capacity and the expansion of

Chinese mainland manufacturers mainland China has become the largest polarizer production base in the world. According to Omdia

data by the end of 2023 the global share of Chinese Mainland's polarizer capacity scale is about 54.91%. It is estimated that by 2027

the share of Chinese Mainland's polarizer capacity scale will further increase to 69.66%. In the competition of ultra wide polarizer

production line brought about by the rapid growth of demand for 65 inch and above large-size display products Chinese Mainland is

in the forefront of the industry. According to Omdia data by the end of 2023 there are 12 ultra wide production lines with a length of

2.3 meters or more in the world of which 11 have been built in Chinese Mainland. Polarizer enterprises with good production and

operation capacity of ultra wide production lines will occupy a favorable position in the market competition.

(5) Market position of the Company's products

The Company is one of the main domestic enterprises in the R&D production and sales of polarizers. It began its polarizer business

in 1995 and achieved the first mass production of polarizers in China in 1998 becoming a pioneer in China's polarizer industry. The

Company has mastered core technologies for the R&D and production of TN/STN TFT-LCD and OLED display polarizers. It is one

of the few domestic polarizer manufacturers with the capability to produce a full range of polarizer products in large medium and

small sizes. The Company was the first to achieve mass production of polarizers for OLED TVs and OLED mobile phones filling a

gap in the domestic market.The Company's main products are medium and large-sized polarizers for TFT-LCD. Its Line 7 is one of the few 2500mm ultra-wide

polarizer production lines in the world capable of meeting the needs of high-generation panel production lines such as 8.5/8.6

10.5/11 generations globally. Especially it offers the best economic production efficiency for 10.5/11 generation lines and has an

industry-leading advantage in the technology and production capacities for ultra-large and large-sized products.

3. Major accounting data and financial indicators

(1) Major accounting data and financial indicators for the last three years

Whether it has retroactive adjustment or re-statement on previous accounting data

√Yes □ No

Retroactive adjustment or restatement of causes

Accounting policy change and Correction of accounting errors

In RMB

Increase/decrease at the end

As at the end of As at the end of As at the end of

of this year compared with

202420232022

the end of last year

Total assets (RMB) 5232150397.33 5649822363.44 -7.39% 5617137367.90

Net assets attributable

to shareholders of the 2951869910.25 2882152266.22 2.42% 2849264555.21

listed company (RMB)

Increase/decrease this year

Year 2024 Year 2023 Year 2022

compared with last year

Operating revenue

3335283008.683079678375.458.30%2837988264.36

(RMB)

Net profit attributable to

the shareholders of the 89371134.24 79268250.45 12.75% 73309182.94

listed company (RMB)

Net profit attributable to

shareholders of listed

companies after 77028485.76 62328667.73 23.58% 61951894.68

deducting non-recurring

profit or loss (RMB)

Net cash flows from

operating activities 231264525.09 184766739.80 25.17% 490238550.60

(RMB)Summary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.Basic earnings per share

0.180.1612.50%0.14

(RMB/share)

Diluted earnings per

0.180.1612.50%0.14

share (RMB/share)

Weighted average rate

3.06%2.77%0.29%2.59%

of return on net assets

(2) Main Financial Index by Quarters

In RMB

Q1 Q2 Q3 Q4

Operating revenue 761350922.92 862033228.98 898708470.32 813190386.46

Net profit attributable to

20777352.8523116722.3835007531.1410469527.87

shareholders of the listed company

Net profit attributable to

shareholders of listed companies

16974425.7818283331.0134873170.406897558.57

after deducting non-recurring profit

or loss

Net cash flows from operating

31638249.21-19803399.27155500217.2063929457.95

activities

Whether significant variances exist between the above financial index or the index with its sum and the financial

index of the quarterly report as well as semi-annual report index disclosed by the Company.□ Yes √No

4. Share capital and shareholders

(1) Number of holders of ordinary shares and preference shares with restored voting right and Top 10

shareholders

In shares

Total number Total Total

of common The total numbershareholders at preferred sharehold

shareholders at of preferred sharthe end of the ers at the end of the

the end of the 33622 32264 e holders voting ri 0 0 month from the month from the date

ghts restored at p

reporting date of disclosing of disclosing the

eriod-end(if any)

period the annual report annual report(if any)

Shareholdings of top 10 shareholders

Proportion Number of Amount of Number of share

Shareholders Nature of shareholder of shares shares held at restricted shares pledged/frozen

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

Shenzhen Investment

State-owned legal person 46.21% 234069436 Not applicable 0

Holdings Co. Ltd.Shenzhen Shenchao

Technology State-owned legal person 3.18% 16129032 Not applicable 0

Investment Co. Ltd.Sun Huiming Domestic natural person 1.60% 8088853 Not applicable 0

Su Weipeng Domestic natural person 0.71% 3580000 Pledged 3000000

Chen Xiaobao Domestic natural person 0.66% 3328620 Not applicable 0

Li Zengmao Domestic natural person 0.61% 3077997 Not applicable 0

Hong Kong Securities

Clearing Company Overseas legal person 0.50% 2507982 Not applicable 0

Ltd. (HKSCC)Summary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.Shanghai

Submartingale Asset Domestic

Management Co. Ltd. non-state-owned legal 0.43% 2154800 Not applicable 0

- Submartingale Value person

No. 1 Private Fund

Sun Wenbo Domestic natural person 0.39% 2000200 Not applicable 0

Shanghai

Submartingale Asset

Management Co. Ltd. Domestic

- Submartingale non-state-owned legal 0.39% 1991700 Not applicable 0

Pingchangxin person

Yuanwang Private

Fund

Among the top 10 ordinary shareholders Shenzhen Investment Holdings Co.Ltd. and Shenzhen Shenchao Technology Investment Co. Ltd. do not constitute

a relationship of persons acting in concert. In addition the Company does not

Related or acting-in-concert parties among know whether there is a related relationship between the top 10 ordinary

shareholders above shareholders and between the top 10 ordinary shareholders and the top 10

shareholders nor does it know whether they are persons acting in concert as

stipulated in the Administrative Measures for the Acquisition of Listed

Companies.Explanation on shareholders participating in the

None

margin trading business(if any )

Lending of shares by the top ten shareholders participating in refinancing business

□Applicable □Not applicable

The top ten shareholders have changed from the previous period

□Applicable □Not applicable

(2) Number of the preference shareholders and the shareholdings of the top 10 of them

□ Applicable √Not applicable

No preference shareholders in the reporting period

(3) Relationship between the Company and its actual controller in the form of diagram

5. Corporation bonds

□ Applicable √Not applicableSummary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.III. Significant events

(1) Termination of the restructuring

In 2023 through the integration of high-quality resources in the polarizer industry the company optimized the

industrial chain layout and actively promoted the work relating to the acquisition of 100% equity in Hengmei

Optoelectronics Co. Ltd. by way of issuance of shares and payment of cash (hereinafter referred to as "the

Restructuring" or "the Transaction"). During the period due to the changes in shareholders and shareholding ratio

of the target company Hengmei Optoelectronics during the restructuring period it is necessary to adjust the

counterparty of the restructuring and the transaction plan according to the relevant rules and requirements of the

registration system. On November 17 2023 the Company reconvened the Board of Directors to review and

approve the revised draft of the transaction plan and adjusted the pricing base date issue price counterparty etc.of the transaction plan. Since the disclosure of this transaction plan the Company and relevant parties have

actively promoted the various tasks involved in the Transaction including additional audit evaluation and

supplementary due diligence of the target company and communicated negotiated and prudently demonstrated

with the counterparty on the transaction plan. According to the relevant regulations the Company shall convene

the Board of Directors to review the draft of the restructuring report and issue a notice to convene the general

meeting of shareholders before May 17 2024 and clarify whether to continue or terminate the Restructuring.Since the planning and first announcement of the Transaction the Company has actively organized all parties

involved in the Transaction to promote the restructuring in strict accordance with the requirements of relevant

laws regulations and normative documents. As of May 16 2024 due to the complexity of the restructuring plan

and the involvement of many counterparties the transaction has not yet completed the approval procedures of all

parties involved and the validity period of the financial data of the target company has expired. The Company is

unable to issue a notice of convening the general meeting of shareholders within six months after the

announcement of the first board resolution on the issuance of shares for the purchase of assets that is before May

17 2024. From the perspective of safeguarding the interests of all shareholders and the listed company the

Company has decided to terminate the Restructuring after prudent argumentation by the Company and friendly

negotiation with all parties to the transaction.According to the agreements relating to the Transaction signed by the Company and the counterparties the

agreements relating to the Transaction shall only take effect after the transaction plan is reviewed and approved by

the Board of Directors and the general meeting of shareholders reviewed and approved by the Shenzhen Stock

Exchange and registered and agreed to by China Securities Regulatory Commission. In view of the fact that the

above relevant preconditions have not been met the termination of the Restructuring is a prudent decision made

by the Company after full communication prudent analysis and friendly negotiation with relevant parties and the

Company and the parties to the transaction do not need to bear any liability for breach of contract or other

liabilities. The Company's current production and operation are normal. The termination of the Restructuring is

not expected to have any material adverse impact on the Company's existing daily operation and financial position

and there is no harm to the interests of the Company and shareholders especially minority shareholders. The

Company will continue to pay attention to and actively explore investment opportunities in polarizer and related

fields to promote the long-term development of the Company and enhance its value. For details please refer to the

Announcement on Termination of Issuance of Shares and Payment of Cash for Purchase of Assets and Raising of

Matching Funds and Related Party Transactions (No. 2024-24) of the Company on Cninfo

(http://www.cninfo.com.cn).

(2) Disposal of Assets by Shenzhen Xieli Joint Venture Company

Our company has invested with Hong Kong Xieli Maintenance Company (hereinafter referred to as "Hong Kong

Xieli") to establish a Sino foreign joint venture Shenzhen Xieli Automobile Enterprise Co. Ltd. (hereinafter

referred to as "Shenzhen Xieli"). In March 2020 Shenzhen Xieli was deregistered by the Shenzhen Municipal

Administration for Market Regulation. In July 2020 our company filed an administrative action with the Yantian

District People's Court in Shenzhen Guangdong Province to revoke the approval of the Shenzhen Market

Supervision Administration for the cancellation of Shenzhen Xieli.In December 2022 the People's Court of Yantian District Shenzhen Guangdong Province reviewed the first

instance judgment and revoked the administrative action approving the cancellation of Shenzhen Xieli's

registration. In January 2023 the third party in the original trial Hong Kong Xieli appealed to the Shenzhen

Intermediate People's Court in Guangdong Province. Later due to Hong Kong Xieli's failure to pay the case

acceptance fee in advance the Shenzhen Intermediate People's Court issued an administrative ruling ruling that

the appeal should be withdrawn by Hong Kong Xieli. The retrial judgment of the first instance has taken effect onSummary of 2024 Annual Report of Shenzhen Textile (Holdings) Co. Ltd.March 22 2023. At present Shenzhen Xieli has resumed its business registration status but its future direction

still needs to be negotiated among all shareholders.The Board of Directors of Shenzhen Textile (Holdings) Co. Ltd.March 28 2024